Kinetic Honda Print Version 2

Kinetic Engineering Limited

Chapter 1

INTRODUCTION

PART A - AUTOMOBILE HISTORY

The Britannica Encyclopedia describes a motorcycle as a bicycle or

tr icycle propelled by an internal-combustion engine (or, less often, by an

electric engine).

The motors on minibikes, scooters, and mopeds, or motorized

velocipedes, are usually air-cooled and range from 25 to 250 cubic cm

(1.5 to 15 cubic inches) in displacement; the multiple-cylinder

motorcycles have displacements of more than 1300 cubic cm.

The automobile was the reply to the 19th-century dream of self-propell ing

the horse-drawn carriage. Similarly, the invention of the motorcycle

created the self-propelled bicycle. The first commercial design was a

three-wheeler built by Edward Butler in Great Britain in 1884. This

employed a horizontal single-cylinder gasoline engine mounted between

two steerable front wheels and connected by a drive chain to the rear

wheel.

The 1900s saw the conversion of many bicycles, or pedal cycles by

adding small, central ly mounted spark ignition engines. There was then

felt the need for rel iable constructions. This led to road trial tests and

competit ion between manufacturers. Tourist Trophy (TT) races were held

on the Isle of Man in 1907 as rel iabil i ty or endurance races. Such were

the proving ground for many new ideas from early two-stroke-cycle

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Kinetic Engineering Limited designs to supercharged, multivalve engines mounted on aerodynamic,

carbon-fibre reinforced bodywork.

INVENTION

The invention of the f irst two-wheeler is a much-debated issue. "Who

invented the first motorcycle?" may seem like a simple question, but the

answer is quite complicated.

Two-wheelers owe their descent to the "safety" bicycle, i .e., bicycles with

front and rear wheels of the same size, with a pedal crank mechanism to

drive the rear wheel. Those bicycles, in turn descended from high-wheel

bicycles. The high-wheelers descended from an early type of pushbike,

without pedals, propelled by the rider's feet pushing against the ground.

These appeared around 1800, used iron-banded wagon wheels, and were

called "bone-crushers," both for their jarring ride, and their tendency to

toss their r iders.

Gott l ieb Daimler (who later teamed up with Karl Benz to form the Daimler-

Benz Corporation) is credited with building the first motorcycle in 1885,

one wheel in the front and one in the back, although it had a smaller

spring-loaded outrigger wheel on each side. It was constructed mostly of

wood, the wheels were of the iron-banded wooden-spoked wagon-type,

and it definitely had a bone-crusher” chassis

This two-wheeler was powered by a single-cylinder Otto-cycle engine,

and may have had a spray-type carburetor. (Wilhelm Maybach, Daimler's

assistant, was working on the invention of the spray carburetor at the

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Kinetic Engineering Limited t ime). I f two wheels with steam propulsion can be called a motorcycle,

then the first one may have been American.

One such machine was demonstrated at fairs and circuses in the eastern

US in 1867. This was built by one Sylvester Howard Roper of Roxbury,

Massachusetts. There is an existing example of a Roper machine, dated

1869. A charcoal-f ired two-cylinder engine, whose connecting rods

directly drive a crank on the rear wheel, powers it.

ORIGIN OF MOTOR-SCOOTERS

Edward Butler, an Englishman, built the f irst motor tr icycle in 1884. The

first gasoline-engine motorcycle to appear publicly was built by Gottl ieb

Daimler, of Bad Cannstatt, Germany, in 1885. The f irst practical engines

and motorcycles were designed by the French and Belgians, fol lowed by

Brit ish, German,Ital ian and American makers.

The popularity of the vehicle grew, especially after 1910. During World

War I the motorcycle was used by all branches of the armed forces in

Europe, principally for dispatching. After the war it enjoyed a sport vogue

until the Great Depression began in 1929. After World War II a revival of

interest in motorcycles lasted into the late 20th century, with the vehicle

being used for high speed touring and sport competit ions.

The practice of attaching auxiliary engines to bicycles in western Europe

and parts of the United States led to the development during the 1950s of

a new type of l ight motorcycle, the moped. Originating in Germany as a

50-cubic-centimetre machine with simple controls and low init ial cost, it

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Kinetic Engineering Limited was largely free of l icensing and insurance regulations except in Great

Britain.

The more sophisticated motor scooter originated in I taly soon after World

War II, led by manufacture of a 125-cubic-centimetre model. Despite

strong competit ion from West Germany, France, Austria, and Britain, the

Ital ian scooters maintained the lead in the diminishing market.

INITIAL HITS

Most of the development during this earl iest of eras concentrated on

three and four-wheeled designs, since it was complex enough to get the

machines running without having to worry about them fal l ing over. The

next really notable two-wheeler was the Mil let of 1892. It used a 5-

cylinder engine built as the hub of its rear wheel. The cylinders rotated

with the wheel, and its crankshaft constituted the rear axle.

The f irst really successful production two-wheeler though, was the

Hildebrand & Wolfmueller, patented in Munich in 1894. It had a step-

through frame, with its fuel tank mounted on the downtube. The engine

was a parallel twin, mounted low on the frame, with its cyl inders going

fore-and-aft. The connecting rods connected directly to a crank on the

rear axle, and instead of using heavy flywheels for energy storage

between cylinder-f ir ing, i t used a pair of stout elastic bands, one on each

side outboard of the cylinders, to help out on the compression strokes. I t

was water-cooled, and had a water tank/radiator built

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Kinetic Engineering Limited In 1895, the French firm of DeDion-Buton built an engine that was to

make the mass production and common use of motorcycles possible. It

was a small, l ight, high revving four-stroke single, and used battery-and-

coil ignition, doing away with the troublesome hot-tube. Bore and stroke

figures of 50mm by 70mm gave a displacement of 138cc. A total loss

lubrication system was employed to drip oil into the crankcase through a

metering valve, which then sloshed around to lubricate and cool

components before dumping it on the ground via a breather.

DeDion-Buton used this 1/2 horsepower powerplant in roadgoing trikes,

but the engine was copied and used by everybody, including Indian and

Harley-Davidson in the U.S. Although a gentleman named Pennington

built some machines around 1895, the first US production motorcycle was

the Orient-Aster, built by the Metz Company in Waltham, Massachusetts

in 1898.

INDIAN AUTOMOBILE INDUSTRY

The Indian automobile segment can be divided into several segments viz.

two-wheelers (motorcycles, geared and ungeared scooters and mopeds),

three wheelers, commercial vehicles (l ight, medium and heavy),

passenger cars, uti l i ty vehicles (UVs) and tractors. The Indian automobile

sector can be divided into several segments: 2 & 3 wheelers, passenger

cars, commercial vehicles (Heavy CVs/ Medium CVs/Light CVs), uti l i ty

vehicles (UVs) and tractors.

Demand is l inked to economic growth and rise in income levels. To

highlight the co-relat ion, while GNP per capita (gross national product)

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Kinetic Engineering Limited grew at a CAGR of 11% between FY71-FY01, passenger car production

increased by 9%. Per capita penetration across all categories is among

the lowest in the world (including other developing economies like

Pakistan in segments like cars).

The industry is highly capital intensive in nature. Though three-wheelers

and tractors have low barriers to entry in terms of technology, other

segments are capital and technology intensive. Costs involved in

branding, distribution network and spare parts availabil i ty increase entry

barriers. With the Indian market moving towards complying with global

standards, capital expenditure wil l r ise to attune to future safety

regulations.

The industry is highly fragmented in nature. In the last ten years, supply

has outstripped demand, as multinationals and domestic players have set

up large-scale manufacturing facil i t ies to meet future needs. As a result,

there is an absence of pricing power with manufacturers. Competit ion is

expected to increase further, as global majors are planning to enter India

either through direct investment or imports.

Automobile majors increase profitabil i ty by sell ing more units. As number

of units sold increases, average cost of sell ing incremental unit comes

down when demand recovers. This is because the industry has a high

fixed cost component.

DID YOU KNOW

India is the 2nd largest two wheeler manufacturer in the world

Second largest tractor manufacturer in the world

5th largest commercial manufacturer in the world

3rd largest car market in Asia, surpassing China in the process

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Automobile Industry in India is sti l l in i ts infancy but growing rapidly. The

opportunit ies in the automobile industry in India are attracting big names

with the big purse and they are investing vigorously in infrastructure,

design and development, and marketing. Automobile industry in India is

today poised for the big leap.

Automobile industry Contributes 17% of the total indirect taxes collected

by the exchequer & is a driver of product and process technologies, and

has become a excellent manufacturing base for global players, because

of i ts

high machine tool capabili t ies

Extremely capable component industry

Most of the raw material locally produced

Low cost manufacturing base

Highly skil led manpower

Special capabil i ty in supplying large volumes

INDIAN AUTOMOBILE INDUSTRY PERFORMANCE

KEY PLAYERS 402

INVESTMENT US$ 2.3 BILLION

OUTPUT US $ 4 BILLION

EXPORTS US $ 417 MILLION

EMPLOYMENT 250,000 PERSONS

MAJOR PLAYERS IN TWO WHEELER SEGMENT

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Kinetic Engineering Limited BAJAJ

It is one of India's top ten companies in terms of market capital ization

and among the top five in terms of annual turnover.

Established in 1945, i t was incorporated as a trading company. From

1948 ti l l 1959, i t imported scooters and three wheelers from Italy and sold

them in India. It then obtained a production l icense in 1959 and struck a

technical collaboration with Piaggio of Italy in 1960.

From 1961 when the annual production was about 4000 units, today the

Company has become a market leader with annual production in excess

of 1.35 mill ion units and with product offerings in al l segments (mopeds &

scooterettes, scooters, motorcycles, three wheelers).

TVS

TVS, a leading two wheeler company began with the vision of the founder

of the Sundaram Clayton Group, the late T.S. Srinivasan - ' to design,

develop and produce an affordable moped for the Indian family.' This

vision was realized in 1980 when TVS 50, India's f irst two-seater moped

rolled out of the factory at Hosur in Tamil Nadu, Southern India.

And today, TVS continues to keep one step ahead of i ts t ime by creating

India's f irst 5 speed, 140 cc motorcycle - The Shaolin. The TVS Scooty, a

60 cc Scooterette, is yet another example of the company pioneering a

new category and emerging as market leaders in i t.

As for other wins, 'Team TVS' has conquered every major race and rally

in the country from the road to the racetrack, with each of the TVS bikes

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Kinetic Engineering Limited being a winner. And each time the 'Team TVS' has won on the track or off

it , our customers have secured a better product for their personal

transportat ion.

HERO MOTORS

Hero, a name synonymous with two wheelers in India, began its journey

around four decades ago. Starting as a manufacturer of bicycle

components, Hero has today grown into a multi-unit, multi-product,

geographically diversif ied group of companies. Like every success story,

Hero's saga contains an element of spiri t and enterprise; of achievement

through grit and determination, coupled with vision and meticulous

planning.

The search for excellence led to the creation of several companies by the

Hero Group. Companies that maintained the ethos of perfect quality,

which helped the Group attain its global stature and self-reliance in the

entire manufacturing process. Keeping the wheels of progress turning are

the individual companies of the Hero Group. Each an independent profit

center. Each a success story in i ts own right. Besides this, the Hero

Group has also helped promote more than 300 ancil laries which meet the

needs of smaller components, and more than 3,500 dealer outlets, each

with its complement of trained mechanics and workers.

HERO HONDA

Hero Honda has a reputation of being the most fuel-efficient and the

largest sell ing Indian motorcycle. I ts commitment of providing the

customer with excellence is self-evident. A rich background of producing

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Kinetic Engineering Limited high value products at a reasonable price led the world's largest

manufacturer of motorcycles to collaborate with the world's largest

bicycle manufacturer.

It was this aff inity in working cultures of Honda Motor Company of Japan

and the Hero Group that resulted in the setting up of Hero Honda Motors

Ltd. A relationship so harmonious that Hero Honda has managed to

achieve indigenisation of over 95 percent, a Honda record worldwide.

Over the years, the Company has received its share of accolades,

including the National Productivity Council 's Award ( 1990-91), and the

Economic Times - Harvard Business School Associat ion of India Award,

against 200 contenders.

MARKET SHARE IN AUTOMOBILE SEGMENT – JUNE 2009

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SALES FROM March-April ‘2007-08 TO March-April ‘2008 -09

Chapter 2

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Kinetic Engineering Limited 2.0 RESEARCH DESIGN

2.1 TITLE OF THE STUDY

The t it le of the study is “A study on the Consumer Perception

towards Kinetic Vehicles in special reference to KINETIC-

HONDA in Bangalore”.

2.2 STATEMENT OF THE PROBLEM

The Kinetic Engineering Limited has planned for a massive restructuring

of Advert ising and Promotional Techniques to bite a better pie of the

Automobile Market and reduce the risk. Therefore, it has planned to do a

series of promotional activit ies.-Monitor , observe, Participate &

evaluate the effectiveness of Kinetic Vehicles.

2.3 OBJECTIVES

The objective or aim of a research not only forms the target towards

which the project should proceed, but also forms a guiding path to the

completion of the project.

The objectives for performing the study-

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1) To study the consumer perception Kinetic Honda in Bangalore City.

2) To study how consumers perceive various aspects of Kinetic

Honda.

3) To study the performance satisfaction of the vehicle.

4) To study the effectiveness of the after sales services.

5) To study the consumer expectations on possible improvements to

the bike.

2.4 SCOPE OF THE STUDY

The consumer is the focus of the marketing efforts. The modern

marketing concept spells out the real significance of buyers behaviour. In

the course of operting the concept, the modern marketing management

tr ies to sole the basic problems of consumers in the area of consumtion.

Solving such consumption problems consumers warrants a thorough

understanding of such problem; it involves the concentrated efforts to

understand the very buying process and al the factors inf luencing it

further, consumer behaviour is dynamic. It is this dynamic nature that

makes it more important making the maketing manager to study, analyse

and interpret the ever changing consumer behaviour, so that we can

monitor the study for the purpose of making sound decisions in respect to

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Kinetic Engineering Limited the 4 P’s of the marketing mix. It is consumer predisposition whether

positive or negative that makes or mars the profit posit ions of a given

product. The study of buyers behaviour takes us to the roots of why a

consumer has a positive or a negative predisposition customers

preference at the time of purchasing books. The importance of every

feature that comprises a book. Through data analysis and interpretation a

broad prospective about the consumer satisfaction towards creossword is

analysed. The study help in understanding the preferences of the

consumers and their suggestions could be considered for the taking

corrective actions.

2.5 OPERTIONAL DEFINITION OF CONCEPTS

a) Market Potential:

A Market potential is an estimate of the maximum possible sales

opportunit ies present in a part icular market segment and open to all

sellers of good service during a stated future period.

b) Sales Potential:

A sales potential is an estimate of maximum possible sales

opportunit ies present in a part icular market segment open to a specified

company selling a good service during a future period.

c) Demand:

Demands are the wants for specified products that are acked up by

abil ity and wil l ingness to buy them.

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Kinetic Engineering Limited d) Market Demand:

Market demand for a product or service is the total volume that

would be bought by a defined consumer group in a defined geographic

area in a defined time period in a defined marketing environment under a

defined level and mix of industry marketing effort.

e) Forecasting:

It is a systematic attempt to probe the future by inference from

known facts. The purpose is to provide management the information on

which it bases future planning decision.

f) Sales Forecast :

Sales forecast is an estimate of sales, in physical units for a

specified future period under a proposed marketing plan or program and

under an assumed set of economic

g) Product Launch :

To set or start on particular course of action, engage vigorously and

enthusiastically in new activity to introduce a product to the public

through publicity campaign.

h) Brand:

A Name, Term, Symbol or Design or a combination of them interned

to identify the goods or services of one seller or group of sellers and to

dif ferentiate them from those of competitors.

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i) Market share:

The company’s overall market share is its share expressed as a

percentage of total industry sales.

j) Perception:

A process by which individuals organize and interpret their sensory

impressions in order to give meaning to the environment.

2.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

problem. It may be understood as a science of studying how rseach is

done scientif ical ly. In i t we study the various steps that are generally

adopted by a researcher in studying his research problem along with the

logic behind them. It is necessary for the researcher to know not only the

research methods/techniques but also the mehodlogy. Researchers not

only need to know to develop certain indices.

The type of research method used for pursuing the study is ANALYTIAL

RESEARCH METHODOLOGY.

2.7.1 SAMPLING

Due to constrain of t ime and resources a sample size of 100 current and

potential customers in Bangalore city were selected.

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Sample unit size: 100

Sampling Procedure: Convenience RANDOM Sampling.

2.7.2 METHODOLOGY

Process of addressing the Research Problem:

The outcome of any research is strongly affected by the choice of

research methods and strategies. Therefore, this chapter gives and

overview of the research methodology chosen for this thesis. First, a

research framework narrows thee research f ield down. Second, the

qualitat ive research methods are depicted before; f inally, the research

activit ies that led to this thesis are presented.

The Research framework mainly focuses on the role of understanding

consumer buying behaviour and expectrations in case of Indian

Automobile. The main research fiels of this thesis is to f ind out al l the

possible activit ies that will help the Indian Automobile to maximize

customer satisfaction and increasing their revenue.

2.7.3 TYPE OF RESEARCH AND TOOLS FOR DATA

COLLECTION

Type of Research: Analytical Study

Methods used for Data Collection: Questionnaire

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Kinetic Engineering Limited Nature of survey : Customer Feed – Back Survey

2.7.4 PLAN OF ANALYSIS

The collected data is usually analyzed with the help of stat ist ical tools

and techniques such as averages, percentage, dispersion, Correlation,

regression, mult i – variant regression, Etc. Further wherever necessary to

make the data presentable in a lucid manner tables, diagrams, charts,

can also be used. This is the duty of the researcher to specify how the

analyses and interpretation of the data of the topic under.

The data put together from he questionnaire put together in the form of

tables and tabulated data was analyzed.

Percentages were calculated for every table for the purpose of

generalization. Data analysis and interpretation was done on the primary

data collected. Inferences were drawn from the anaysis to attain the

objectives of the study.

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Kinetic Engineering Limited 2.8 REFERENCE PERIOD

The study was conducted from 19th February,2010 to 26th March,2010.

2.9 LIMITATIONS OF THE STUDY

In spite of the best efforts the study has certain l imitat ions which are

unavoidable. Though this study was conducted with the aim of providing

accurate information, the research is subject is subject to practical

constrains. A complete enumeration of the population was not possible

because the study was l imited only to a selected number of owners of the

vehicle KINETIC HONDA in the city of Bangalore. Due to constrain of

t ime and resources an extensive research could not be undertaken.

Therefore, the sample size was restricted to 100. Analysis of data

obtained from the questionnaire was done on assumptions that honest

and correct information had been given by the respondents. Due to

confidential i ty of certain information not al l the details could be obtained

from the company. The targeted customers might not be interested in

fi l l ing the provided questionnaire which constrains us from obtaining

accurate information. As this study was bases on convenience sampling it

suffers from all the disadvantages of such a sampling procedure. Despite

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Kinetic Engineering Limited l imitation an honest and sincere effort has been made to extract best

possible information.

2.10 OVERVIEW OF CHAPTER SCHEME

Chapter 1: INTRODUCTION

This chapter deals with the history of KINETIC ENGINEERING

LTD. And introduction to marketing,customer satisfaction and

customer relationship marketing.

Chapter 2 : RESEARCH DESIGN

This chapter deals with the design of the study comprising statement of

the problem, objectives operational definit ion of concept. Besides this

includes plan of analysis, sampling procedure, source of data, scope of

the study and limitations of the study.

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Kinetic Engineering Limited CHAPTER 3: Company Profile

This chapter deals with the background of the Kinetic Engineering LTD.

And its various divisions and the poduct profi le of the company.

CHAPTER 4: Analysis and Interpretation

This chapter deals with the classification and tabulation of data,

analysis and interpretation and summarizing of findings.

CHAPTER 5: Findings of the Study

This chapter deals with the findings of the study during the survey made.

The entire finding are totally based on the questionnaire which has been

fi l led up by the respondents.

CHAPTER 6: Suggestions And Conclusions

This chapter Deals with the Conclusions which have been drawn

and the entire study and finally giving suggestions on the study.

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Kinetic Engineering Limited BIBLIOGRAPHY: it the references made such as the books,

news, articles, journals and websites.

ANNEXURE: it is the additional material used in the project

report.

SWOT ANALYSIS

SWOT Analysis refers to analysis of Strengths, Weaknesses, Opportunities, and Threats", possessed and faced by an Organization.

STRENGTHS

Among the Leaders in 2-wheeler segment: With the large

Urban customer base presence across the country, Kinetic vehicles

have made their presence as one among the leaders in 2-weeler

segment.

World class automation and Quality: The Quality and

automation technology of Kinetic Industries in production has

brought the Company into l ime-l ight.

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Kinetic Engineering Limited Expertise in technology: In the technological aspect, Kinetic

Industries are being referred as among the best achievers in

technological expertise.

Kinetic brand image: In spite of competitor activit ies the

average Indian consumer sti l l associates Kinetic brand as a good

quality moped in al l the nook and the corner of the country.

Kinetic employees: High commitment of staff and officers of the

Organization to not only survive but to turnaround the operations of

the unit in their long term interests of the Company.

WEAKNESS

Poor promotional measures: The promotional strategies though

being effective and strong, arent being executed properly at the

lower level of the Organization.

Lower brand name: The brand name of the Company I sonly

l imited to Urban class of the society and st il l isnt effective in certain

sections there either.

Company is satisfied with past glory: Kinetic vehicles were the

first mopeds on the Urban roads to attract the large section of the

Urban society. But cudnt hold that effectiveness in the coming

years, because of i ts satisfaction with past glory.

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Very Poor and non-promotive dealer network: The dealer

network of Kinetic vehicles around, is very poor in customer

servicing and satisfaction as well as non-promotive.

Not targeting rural segment: Kinetic Industries have completely

ignored the very huge rural segment of the nation.

OPPORTUNITIES

Fuel efficient vehicles are expected by the market: The now

market is expecting more of fuel eff icient vehicles rather than style

and looks. This can be an opportunity for Kinetic R&D department to

work upon fuel efficient Kinetic vehicles.

Scooterette market is Picking up: With more of the female

raiders going around, the scooterette market is picking up, which is

an opportunity for the Organization.

New technology will improve productivity and decrease

production cost: More the production lesser would be production

cost with the reduction in the fixed cost of production. The new

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technology inducted recently in the production units would improve

productivity and decrease production cost.

Innovations and Quality: With some innovations and balancing plant,

high quality special ized vehicles can be produced which are outside

the known capabil it ies of most competitors presently operating in

automobile sector.

View upon niche market: The combination of cost effective vehicles

with movements of different calibers, a whole new niche of market

segments can be created with new value addition prospects and

thereby buffering the bottom l ine.

THREATS

Government laws: The often changing laws of Government are a

major threat to the Organization’s strategies.

Foreign competitors are entering market : Apart from domestic

competitors, more and more foreign competitors are entering into

market not only through direct entries but also acquisit ions and

mergers, making it a major threat.

Every competitor is going for increasing their market share:

The present mode of operations cannot be continued indefinitely

and may lead to losses for the Company because every competitor

is trying their best to increase their market share.

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Chapter 3

COMPANY PROFILE

Kinetic Engineering Ltd., founded in the year 1970, is the leading

manufacturer and exporter of 2-wheelers. Born of the vision of the late

Shri H. K. Firodia, Kinetic Engineering Ltd., have engineered heart-

winning products for over two decades.

KEL manufactures a wide range of Mopeds, Scooters and Motorcycles

that are very popular in the country and are well recognised for their fuel

economy, quality and rel iabil i ty.

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Kinetic Engineering Limited KEL has 3 manufacturing plants at Ahmednagar (for scooterettes and

mopeds), Pitampur(for scooters) (Indore) and Goregaon (for motorcycles

and step-thrus), with the capacity to manufacture 4 lakh vehicles per

year. Their well endowed technologically advanced manufacturings set up

have enabled them to reach high quality standards. The company also

exports these vehicles to countries l ike USA, Canada, Sweden, Latin

America, Denmark and the Middle-East.

The company has always been conscious of quality and customer

oriented production. A strong service network set up across India backs

Kinetic Engineering Ltd. Kinetic Engineering are also the promoters of

Kinetic Honda Motor Ltd., a joint venture with the internationally known

Honda Motor Company of Japan. The Kinetic Honda – 100cc bike is a

very popular choice among two wheeler motorists in the country

Kinetic Engineering Limited, the flagship company of the Kinetic Group

comprises of Kinetic Engineering Limited, Kinetic Motor Company Ltd.,

Kinetic Communications Ltd., Kinetic Transportat ion Ltd., Jaihind Sciaky

Ltd., Kinetic Fincap Ltd. and Kinetic Lease and Finance Ltd. - the two

finance companies of the Group. Kinetic Engineering Limited is also

associated with Bajaj Tempo Ltd., a part of the Firodia enterprises, which

manufactures l ight commercial vehicles, jeeps and tractors.

Kinetic is synonymous with innovation and pioneering capabil i t ies. It is

the company, which brought the f irst moped, the Luna, to India in 1972.

Luna is now generic to mopeds. Kinetic has also been the pioneer in

bringing modern scooters to India in the form of the Kinetic ZX, DX, and

Marvel, under the erstwhile Kinetic Honda Motor Company Limited.

Recently, the group wrote history by being the first Indian JV partner to

buy out the foreign majority shareholder, especial ly of a multinational

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Kinetic Engineering Limited giant l ike Honda. The company now joins the Kinetic fold as Kinetic Motor

Company Ltd. The new scenario is very bright for KMCL. It is a win - win

situation for both parties concerned. Honda is committed to providing

technical assistance to post - JV KMCL, including parts supplies,

exchange of technicians, exports under the Honda brand name and

exclusive rights for the manufacture and sale of the erstwhile KHML

products namely, the DX / ZX and Marvel scooters. Thus Kinetic is now

gearing itself to meet the challenges of the millennium. Kinetic's brand

equity has been strengthened by the success of SAFARI V2, a 60cc bike.

The bike was developed keeping in mind the needs of the customers who

wanted a load carrier and a rugged machine to tackle the rough terrain of

Southern India. The vehicle's rugged chassis al lows it to travel with ease

over long distances with heavy loads, with the least amount of

maintenance issues. K4-100 has been acclaimed as "India's most fuel

efficient bike", by auto crit ics. Kinetics' future plans include the

introduction of a range of 4 stroke motor cycles for the rural and urban

segments in the next 2 years. With Kinetic having indigenized the 4-

stroke technology, i ts vehicles would boast of a price advantage among

other benefits, which will be offered to the customers. Kinetics' product

extension strategy is supported by three core strategic factors: First

Kinetic has been awarded ISO 9001 cert if ication in recognit ion of its

stringent quality control. This covers al l the functions from manufacturing

to customer service. Secondly, the company has a strong dealer network

of over 450 dealers and service points. This network ensures Kinetics'

presence even in remote regions and its endeavor towards customer

service.

VISION

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To strive for excellence through supply of products comparable to

international standards and total performance leadership.

MISSION

To establish ourselves as one of the leading companies in the

manufacture of automobile, be globally competit ive, with a prime

focus on quality products & customer satisfaction.

To achieve sustained growth and to improve the quality of work li fe

for the employees.

To provide the best services to the customers with promptness and

achieve customers delight.

COMMITMENT

Strive continuously to assure you of highest standard of service

Strive to attain international standards to become globally competitive.

Acknowledge all correspondence from you within a reasonable time of its receipt

Adhere to the delivery schedules committed by us to you

Always maintain the highest ethical standards in all our endeavors, business and

economic activities

Always strive to achieve economy in all our products and services without

compromising the quality standards

Always remain competitive through continuous improvement in our technology

Always be honest and transparent and would like to be seen as honest.

Implement all the policies and directives of Central Vigilance Commission.

Corporate Objectives & Goals

MSRCASC - 29

Kinetic Engineering Limited To encourage the modernization of Indian Industry through the supply of

engineering goods and automotives as well as services of world class excellence

To maintain technological leadership through continuous efforts to update product

technology and manufacturing methods

To globalize our operations by developing a mix of international markets and

businesses

To ensure a satisfactory return on capital employed, to meet the growth needs and

the aspirations of our stakeholders

To present an active, pleasant and productive working environment.

Kinetic Honda

MSRCASC - 30


Kinetic Honda is the name given to a gearless automatic motor scooters, made

in India by the Kinetic Motor Company, whilst they were in partnership with the

Japanese company Honda. They were sold from 1985 to 1998—at point which the

partnership was terminated—and are still in common usage all over India. They

use continuously variable transmission and have an air-cooled engine.

The scooters are based on the Honda NH series.

A continuously variable transmission is a transmission which can change

steplessly through an infinite number of effective gear ratios between maximum and

minimum values. This contrasts with other mechanical transmissions that only allow a

few different distinct gear ratios to be selected. The flexibility of a CVT allows the

driving shaft to maintain a constant angular velocity over a range of output velocities.

This can provide better fuel economy than other transmissions by enabling

the engine to run at its most efficient RPM for a range of vehicle speeds. Alternatively it

can be used to maximize the performance of a vehicle by allowing the engine to turn at

the RPM at which it produces peak power. This is typically higher than the RPM that

achieves peak efficiency.

MSRCASC - 31

http://en.wikipedia.org/wiki/Engine

http://en.wikipedia.org/wiki/Fuel_economy_in_automobiles

http://en.wikipedia.org/wiki/Gear_ratio

http://en.wikipedia.org/wiki/Transmission_(mechanics)

http://en.wikipedia.org/wiki/Honda_NH_series

http://en.wikipedia.org/wiki/Continuously_variable_transmission

http://en.wikipedia.org/wiki/Honda

http://en.wikipedia.org/wiki/Kinetic_Motor_Company

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Motorscooter


Or ig ina l vers ions

1984: Kinetic DX (98cc, 2-stroke, single mirror, black plastic finish) 1984: Kinetic EX (98cc, 2-stroke, single mirror, black plastic finish, no

indicators(replaced by black blocks), limited colour versions) 1994: Kinetic ZX (98cc, 2-stroke, double mirror, wind shield, more graphical

stickers, grey plastic finish)

Late r vers ions

2000: Kinetic Honda (110cc,2-Stroke) 2001: Kinetic ZX Zoom (110cc, 2-stroke. Otherwise as the ZX) 2005: Kinetic 4s (113.5cc, 4-stroke)

Wor ld reco rds

The Kinetic Honda holds three World Records:

1989: Travelling to highest motorable road-Khardungla 1990: Day & night non-stop riding for 1001 hours+ 1991/92: Crossing of Sahara Desert with a fuel consumption same as a

small car

KEY MILESTONES IN THE HISTORY OF KINETIC

1964 Foundry and Plant of Jay hind Industries set up.

1970 Kinetic Engineering Ltd, incorporated for the purpose of

MSRCASC - 32

http://en.wikipedia.org/wiki/Kinetic_Motor_Company#Kinetic_4s

Kinetic Engineering Limited Manufacturing.

1974 Jayahind Sciaky, set up in collaboration with Sciaky

Intertechnique S.A. of Switzerland.

1980 Kinetic group joins hands with Twentieth Century Finance.co

Corp. And Integrated Finance Ltd., to float Joint Venture Finance

Companies to f inance Kinetic 2 wheelers.

1981 ZF Steering Gear India Ltd. Launched. (Kinetic enters into

collaboration with Zahnradfabrik Friedchshafen A.G. of West

Germany).

1984 Kinetic Group enters into collaboration with Honda Motor

Company of Japan and a new company Kinetic Honda Motor

LLtd. is born.

1996 Kinetic group takes over Integrated Kinetic Fincap Finance

Ltd and Ltd and the company is renamed as Kinetic Lease and Finance

ltd.

1996 Kinetic collaborates with Hyundai Corporation of South Korea

form a new company - Kinetic Trans Products Ltd.

1997 Kinetic group take over Twentieth Century Kinetic Finance and

the and the company is now renamed as Kinetic Fincap Ltd.

1998 History is created as Kinetic acquires major stakes in Kinetic

Honda Motors Ltd.

1998 Kinetic Communications Limited set up in technology &

license l icense agreement with Daewoo Electronics Limited of South

Korea, for Korea, for manufacturing trading and marketing of Colour

MSRCASC - 33

Kinetic Engineering Limited Monitors for PC's.

1999 Kinetic Motor Company Ltd. is formally incorporated.

2000 Kinetic eBiz is launched.

GROUP COMPANIES :

KINETIC ENGINEERING LIMITED,

KINETIC MOTOR COMPANY LTD.

KINETIC COMMUNICATIONS LTD.,

KINETIC LEASE AND FINANCE LTD

KINETIC TRANSPORTATION LTD.,

JAI HIND SCIAKY LTD.,

KINETIC FINCAP LTD. AND

KINETIC MARKETING AND SERVICES

KINETIC ENGINEERING LIMITED

Kinetic Engineering Limited is part of the Kinetic group of companies, a

leading manufacturer of two wheelers in India.

Kinetic Engineering pioneered the concept of personalized transportation

in India with the launch of popular and affordable moped Luna in 1970.

Since then the company has expanded aggressively and now

manufactures a wide range of vehicles in the popular segments of

motorcycles, mopeds and step through.

MSRCASC - 34


KINETIC MOTOR COMPANY LIMITED

Kinetic Motor Company Limited is part of the Kinetic group of companies,

a leading manufacturer of two wheelers in India.

Kinetic Motor began in 1984 as a Joint Venture with Honda Motor of

Japan, to manufacture and market advanced scooters in India. The

company soon became renowned for having revolutionized the scooter

market with its introduction of a modern scooter featuring modern styling.

variomatic gearless transmission, self start and several other comfort and

conveniece features. In 1998, the arrangement with Honda Motor was

realigned as a technical collaboration. With that, the company became

the f irst Indian company to buy out the control l ing stake from its foreign

partner. After the realignment the company has posted major growth in

sales and profitabil ity, introduced new models and made several key

improvements in al l products.

KINETIC MARKETING AND SERVICES

The two wheeler industry is growing at an impressive rate of 8-9 % every

year with growth rates varying across the different sub segments. The

industry which at one time consisted of only scooters and mopeds now

comprises of a range of new vehicles, al l respectively classified under

mopeds, scooterettes, scooters, step thru bikes and motorcycles. With a

whole new gamut of models available in this high growth industry, i t has

MSRCASC - 35

Kinetic Engineering Limited become all the more diff icult for a customer to select and finalize a

vehicle which is as per his needs and expectations and is, at the same

time, affordable to his pocket. To cater to the demands of these

customers in this highly cluttered and competit ive industry, Kinetic has

taken the bold init iat ive of launching a new company, set to revolutionize

the way automobiles are sold in India!

Kinetic Marketing & Services Pvt. Ltd has been incorporated to sell

Kinetic two wheelers directly to the end user. Servicing will be provided

by Kinetic's Authorized Sales & Service Centers. With this new Direct

Sales Channel, Kinetic intends to capital ize on its ful l range of vehicles

and make the task of choosing and selecting a suitable vehicle much

easier. With this new distribution channel in place, a customer wil l get the

comfort of choosing a vehicle, sit t ing at home or office, without having to

go through the hassle of visit ing dif ferent showrooms. Under the new

system, the fully trained sales force will directly approach the customer at

his place of work or home, explain the product features, benefits and

advantages in detail, offer test r ides so that the customer can have

firsthand experience & feel about the vehicle and offer suitable house

finance schemes.

ACHIEVEMENTS

Kinetic has achieved what nobody else has before! And that too twice - so

when you ride a kinetic, you ride a Guinness World Record holder!!

MSRCASC - 36


KARDUNGLA PASS - THE HIGHEST MOTORABLE ROAD IN THE WORLDKinetic scooter has set i ts mark where no other two wheeler has done so.

It has reached the highest motorable road in the world - the Kardungla

Pass (near Leh).

LONGEST RUNNING- 1001 HOURS OF CONTINUOUS RUNNING.

Kinetic scooter has achieved the feat of 1001 hours of continuous

endurance running. The earlier record was for 500 hours held by a

Yamaha motorcycle.

KASHMIR TO KANYAKUMARI - IN 38.76 LITERS ONLY!

Kinetic K4, the 4 stroke motorcycle, successfully completed a distance of

3591 kms from Kashmir to Kanyakumari in just 38.76 li tres of petrol,

recording an on road mileage of 92.6 km / ltr.

The ral ly was conducted by riders of the Pune Garage Owners

Association, and completed within 13 days. It passed through rough

terrain and rain, a natural endurance test, and was accompanied by auto

journalist Mr. Dil ip Bam - an independent observer and an accreditation

agency.

WON A RACE AGAINST DECCAN QUEEN TRAIN !

To demonstrate the excellent engineering behind their design, Kinetic

products have twice accomplished the feat of successfully racing against

the popular train "Deccan Queen" on the Pune - Mumbai route.

MSRCASC - 37

Kinetic Engineering Limited Flagged off from the Pune Station in the presence of press journalists,

the Police Commissioner and the enthusiastic and supporting public,

three Luna vehicles raced against the Deccan Queen and in a record feat

reaching Dadar station at Mumbai 15 minutes ahead of the train.

KINETIC SCOOTERS CROSS SAHARA DESERT !

In an effort to prove its engineering, Kinetic scooters, in 1995, passed the

endurance test by crossing the Sahara Desert. Ridden by the eminent

auto journalist and now the editor of the popular auto magazine

Overdrive, i t crossed the complete desert area and successfully proved

its endurance and ruggedness under very hosti le circumstances.

PRODUCTS

Kinetic makes and sells a complete range of two wheelers from mopeds,

scooters to motorcycles! We have a product to suit every need,

preference and pocket.

MOTORCYCLES

Kinetic King – Double role bike

Kinetic Aquila – India’s only real cruiser

Kinetic GF Laser – Premium, sporty motorcycle

Kinetic GF 170 City – high performance motorcycle

Kinetic GF 125 – 4valve, styl ish motorcycle

Kinetic Velocity – Perfect urban commuter!

Kinetic Challenger – handsome, affordable commuter

Kinetic Boss 115 – Socho to bada socho!

Kinetic Boss EX – Best value for money motorcycle

MSRCASC - 38

http://www.kineticindia.com/boss/index.asp

Kinetic Engineering Limited SCOOTERS

Kinetic Nova 135 – Say AAHO!

Kinetic Nova EX – 4 stroke Scooter of the Year

KINETIC HONDA – Revolution of scooters.

Kinetic Zoom – India’s most loved scooter

Kinetic Blaze - CATCH ME IF YOU CAN

SCOOTERETTES

Zing 80 - Perfect scooterette!

Kinetic Zing – youthmobile

Zing Rockin’ Series – scooterette with unique features like mobile

chargepoint, and more..

Kinetic Style – spacious, powerful scooterette

STEPTHROUGH

K4 80 – India’s most fuel eff icient two wheeler

MOPEDS

V2 Range – Solid moped for load carrying

Luna Range – simple, economical and efficient!

MSRCASC - 39


\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \

O R G A N I S A T I ON S T R U C T U R E

LEADERSHIP

OUR FOUNDER

Kinetic group, with the flagship company of Kinetic

Engineering Limited, was founded by Late Shri.

H.K. Firodia fondly remembered as the Doyen of

Indian Automobile Industry. He was a man who

nearly single handedly laid the foundations of the

now thriving Indian Automobile Industry.

CHAIRMAN - MR. ARUN FIRODIA

Arun Firodia is the founder and Chairman of the

Kinetic Group of companies and is one of the most

respected industrial ists in India. He is widely

acknowledged as a visionary and a technocrat. He is

a member of the Executive Committee of AIAM

(Association of Indian Automobile Manufacturers)

and of FICCI. He is currently the President of MCCIA

(Mahratta Chamber of Commerce, Industries and

Agriculture). Mr. Firodia holds a B Tech from the Indian Institute of

MSRCASC - 40

Kinetic Engineering Limited Technology, a Masters in electrical engineering from the Massachusetts

Institute of Technology and an MBA from the Sloan School of

Management. He is deeply interested and committed to Science and

Technology and has insituted "the H K Firodia awards in Science and

technology".

Ms. SULAJJA F IRODIA MOTWANI

Sulajja Firodia Motwani has been working as the

Joint Managing Director at Kinetic, and the

Managing Director of Kinetic Finance for the past

four years. She is in charge of the companies'

strategy, sales, marketing and finance activit ies.

She was recently featured as a business "Face of

the Millennium" by India Today; and was voted

among the top 25 business leaders of the next

century in a poll of industrial ists conducted by Fortune India. Prior to

joining Kinetic, Sulaj ja worked at BARRA, a f inance portfolio management

company in Berkley and also launched their Indian off ice. Sulajja has an

MBA in marketing and finance from Carnegie Mellon University. When

Sulajja is not launching new products in the market, she plays Badminton

and has participated in several National tournaments between 1986 - 89.

Her other areas of interest include playing golf, spending time with her

family, reading and skiing.

MSRCASC - 41


INFRASTRUCTURE AND SUPPORT

DEDICATED TEAM: An experienced and dedicated team supports our international trade relations. Each marketing manager is experienced in International Trade and customs, currency, practices, polit ics, economics and current happenings in respective markets.

SINGLE WINDOW COMMUNICATION: A designated Marketing Professional fully conversant with products & international operations to take care of each importers requirements Strong trading companies wanting to venture newly in two-wheelers business are welcome. We can offer related business know-how and information.

HOMOLOGATION EXPERTISE: As required, vehicles can be modif ied to suit importing countries traffic and statutory regulations. This involves engine tuning to comply exhaust emission, noise, braking and host of other requirements.

MSRCASC - 42

Kinetic Engineering Limited MANUFACTURING QUALITY: All models manufactured in-house with over 30 years of engineering and production expertise and highest quality standards.

RELIABLE DELIVERY: Orders dispatched in 30 days ex-factory. Delivery schedules are worked joint ly to meet importers needs.

SPECIAL CRASH DELIVERIES: Advance production against importers forward requisit ion is undertaken in case of t ight delivery schedules.

AFTER SALES SERVICE SUPPORT:

- Special service tools supplied for each model - Spare parts supplied with containers - Adequate warranty support provided - Product service training imparted at site

PACKAGING: Tailor-made packing of vehicles can be offered intended to save custom duties.

LOGISTICS:

- Efficient and cost competit ive logistic arrangements from world’s top

shipping companies

- Logist ic expertise by a professional in-house team

MSRCASC - 43

Kinetic Engineering Limited PROMOTION SUPPORT: Product Promotion Support available proportionate to volumes.

ORGANISTION STRUCTURE OF

KINETIC ENGINEERING LIMTED

The Organization has been built upon structured principles and consists

basically of three tier systems.

MSRCASC - 44

Quality Department

Human Resource

Department

MarketingDepartment

Finance Department

COMPANY

Management Information System

TOP LEVEL MANAGEMENT

MIDDLE LEVEL MANAGEMENT


MARKETING DEPARTMENT

In kinetic, the marketing function encompasses market research, quality

assurance and service functions.

MARKET RESEARCH

In this department, periodical surveys are conducted to know the

customer's mind about the product. Researchers employ marketing

research techniques to evaluate the products in the market place. Feed

back and suggestion are taken from the existing and prospective

customers. The company gets to know their position in the market

scenario vis-a vis others. This results in possible new product

developments as well as modifying the exist ing products.

MARKETING FUNCTIONS

Marketing is one of the vital functions in kinetic. The prime function of

this department is to promote its brand to the public, after knowing the

customer's mind. The customer's mind is studied through a market

research conducted by the company.

After this, the company markets their products to the customers through

dif ferent means. For this the company includes the sales as well as the

advertising strategies. The company performs activit ies such as

MSRCASC - 45

Kinetic Engineering Limited Promotion

Television advertisements

Newspaper advert isements

Magazine advertisements

Internet

Conducting shows

Giving / sticking posters

Giving leaflets

QUALITY ASSURANCE

In his phase the Quality assurance is given to the product. The Quality

assurance

Is given on the basis of fol lowing reasons

The assurance is given on the basis of the looks of the product

The assurance is given on the basis of t he style.

The assurance is given on the basis of the performance.

The assurance is given on the basis of the mileage.

The assurance is given on the basis of the price.

SERVICE FUNCTIONS

The service function and marketing function have close link between each

other. Once the product has been marketed it is fol lowed by service.

MSRCASC - 46

Kinetic Engineering Limited The service function has the vital in the organization. I f this department

doesn't function well, i t would lead to dissatisfaction among the

customers and ultimately would lose their image in the market. The

service department performs functions such as taking feedback from the

field i.e., through the dealers, customers, and local mechanics.

It performs activit ies such as

free service camps

conducting emission check

holding customer meet

holding dealership meet

holding service meet

MSRCASC - 47

CMD

JMD

VP(S & M)

OFF. (MKTG)

MGR (MKTG)

AGM (MKTG)

GM (MKTG)

MD

DGM (SERV)DGM (SERV)DGM (SERV)DGM (SERV)DGM (SERV)DGM (SERV)DGM (SERV)

ZH

TRAINEE

SR. ENG

SR. SER ENG

MGR (SER)

AGM SALES B/W

AGM SALES B/W

RM

AGM SALES B/W

AGM SALES B/W

DY. MG.

A. MGR

GR. OFF

S. OFF


Organization Chart-Marketing and Service

MSRCASC - 48


MANUFACTURING AND LOGISTICS DEPARTMENT

FUNCTIONS:

Kinetic products are manufactured at different parts of the country. They

are as fallows

At Goregaon Bheema Factory - Mobikes and Stepthroughs are been

manufactured

At Ahmednagar Factory - Scooterettes and Mopeds are been

manufactured

At Pitampur(Indore) Factory – Scooters are been

Manufactured

The organization manufactures the vehicle's chassis and engine which

includes the engine related parts, crank case and block piston.

The product is manufactured by passing through 3 stages

I. Assembly line - for f ixing the different parts of the product by

using

Pneumatic tools

II. Heat treatment - the chassis is manufactured by f irst passing

through

a heat treatment process.

III . Colour treatment - the product goes to the paint shop for giving

Different attractive colour shades for the product.

MSRCASC - 49

Kinetic Engineering Limited After passing through these stages, the f inished product comes into being

Then it goes for testing

Then the product gets quality check / quality assurance.

After this, the product is sent to the company godown.

From these godowns it is further dispatched to the different dealers

and company stockiest

HUMAN RESOURCE DEPARTMENT

The function of Human Resource department is to acquire, train, develop

and retain the human resources of the organization so that with the help

of these human resources, the organization is able to achieve its goal.

THE CULTURE

The most prized asset of kinetic is i ts employees. Continuous training and

retraining; a positive work culture and participative style of management

has resulted in the development of a committed and motivated work force

who is ready to meet any challenge. In addition to its casual business

attire and informal--yet professional--work atti tude, it ’s proud of the open-

door policy between the staff and upper management. Kinetic also foster

good working relat ionships through activit ies beyond work

FUNCTIONS OF HRM

The major function of kinetic’s HR department is to manage people at

work. Managing people not only refers to workers but also includes white

MSRCASC - 50

Kinetic Engineering Limited collared professionals. The main objective of Kinetic’s HR department is

to maintain the cordial relat ionship by providing maximum welfare and

thereby optimizing the personal contribution to the effective working of

the organization.

The activit ies carried out by Human Resource department are

Manpower Planning

Induct ion of the New employees

Performance Appraisal

Organization Development

Train ing and Development

Employee Counsel ing

Industr ial Relat ions

MANPOWER PLANNING

The first and foremost thing to be done is to plan the requirement of

manpower for the organisation for fulf i l l ing its goals and at the same time

optimizing it, so that the expenditure of the company should decrease. So

manpower requirement in each department is planned accordingly to i ts

kind of functioning

RECRUITMENT AND SELECTION

It is the process of locating and choosing the sources from which the

required person could be obtained and considered for appointment. The

choice among the potential candidates will depend upon the criteria

relating to age, qualif ication, experience, etc.

MSRCASC - 51

http://www.indiainfoline.com/bisc/HR10.html

http://www.indiainfoline.com/bisc/HRM8.html





kinetic is an equal opportunity employer and makes all employment

decisions without regard to race, sex, rel igion, national origin,

cit izenship, disabil ity, age, sexual orientation, polit ical affi l iation or any

other criterion prohibited by law.

INDUCTION OF THE NEW EMPLOYEE

This is the first t ime the employee and organisation come in contact after

the relationship of employer and employee is established.

The aim of the induction process is to familiarise the new employee with

the organisation so that the apprehensiveness of the employee entering

the new organisation is dispelled as fast as possible.

Thus by this process helps kinetic in inducing the organisation culture in

the new employee. It is not only relevant for employees working for the

first t ime but also for employees with prior experience. This is because

the employees with prior experience wil l be used to a certain style of

working and a certain organisation culture and they have to be introduced

to the culture of the current organisation.

PERFORMANCE APPRAISAL

The meaning of the word "appraisal" is "to f ix a price or value for

something". This is used in f inance in terms such as project appraisal or

f inancial appraisal where a value is attached to a project. Similarly

performance appraisal is a process in which one values the employee

contribution and worth to the organisation.

The objectives of performance appraisal are:

MSRCASC - 52


1. To help better current performances

2. To help in development of the employee.

3. To determine training and development needs.

4. To give employee feedback and counsel them

5. To review performance for salary purposes.

ORGANISATION DEVELOPMENT

Organisation development can be said to be the development of the

organisation through the development of i ts employees and the

development of the employees through the development of the

organisation. Organisation development wil l not only take place within the

entire organisation but also within sub groups.

The role of HR person is more subtle and subjective. The HR person wil l

bring changes in the thinking of i ts employees to bring about a change in

the organisation culture. For this the HR person has to constantly strive

to create a continuously learning organisation. It must enable the

employee to recognise that learning and change is basically the same

thing. Thus they have a big role in the development of the organisation.

TRAINING AND DEVELOPMENT

Training can be defined as process which helps people to learn. From an

organisation point of view it would have a specific aim of making the

employee more effective in his work. Training in organisation is oriented

MSRCASC - 53

Kinetic Engineering Limited more towards the needs of the organisation rather than the individual.

However organisations are now waking up to the individual needs of the

employee too and are mixing the training programs so that both the needs

are met.

The main objective of training will be to make the employee more

productive at his work and also at developing the employee for the future.

The HR person wil l normally frame a training policy. This policy wil l

normally be in l ine with the overall policy of the organisation.

EMPLOYEE COUNSELLING AND WELFARE

Employee counseling and welfare can be said to be the organisation

trying to take care of the employee .The reason for this are plenty. They

range from

Not letting personal affairs affect the productivity and hence profits.

1. Taking it as a social responsibi l ity.

2. To be seen as a benevolent employer in the eyes of the

employee as well as the society.

3. The above reason also serves as good PR tool for the

organisation to be called as caring organisation

Typically this would entail :

a. Canteen policy

MSRCASC - 54


b. Medical benefits

c. Employee loans

d. Housing facil i t ies

e. Pension schemes

f. Investment and tax advice.

g. Recreation facil i t ies

h. Transport faci l i t ies.

INDUSTRIAL RELATIONS

Industrial relations is basically concerned with the relation between

workers and management. However as we move from an industrial

business structure to a knowledge based business structure, the term

"industrial" is being replaced by "employee".

The HR person’s aim in maintaining employee relations is that employees

remain committed to the organisation and remain productive.

The quality of relat ionship that the organisation shares with its employees

is central to the business goal of the organisation and to the health of the

organisation.

Organisations try to have control of employees in a fair manner by

encouraging them to perform better.

In tackling employee relat ions the skil l sets needed of a HR person are

a. Good communication skil ls

b. Good bargaining skil ls as demands may sometimes get

out of hand

MSRCASC - 55


c. Counseling and decision making skil ls

d. Empathy

Organisation Chart-Human Resource Department

MSRCASC - 56

CMD

JMD

VP(HRM)

OFF. (HRM)

MGR (HRM)

AGM (HRM)

GM (HRM)

MD

MGR- Induction

MGR- Training &

Development

MGR- Organisational Development

MGR- Industrial Relations


FINANCE DEPARTMENT

MSRCASC - 57

Kinetic Engineering Limited Every organization irrespective of its size and mission may be viewed as

a financial entity. Financial management is broadly concerned with the

acquisit ion and use of funds by a business firm. Finance to any

organization is l ike blood to human body. Financial management in many

ways is an integral part of jobs of managers who are involved in planning,

allocation of resources, and control. There are however, many tasks of

f inance and all ied areas which are specialized in nature and which are

attended to by specialists.

The important functions of the financial department are:-

Internal audit

Books & Budget

Establishment

Commercial Department

INTERNAL AUDIT

Internal audit takes care to maintain the requirement and condition

mentioned in various section of companies act 1956. All the audit work is

carried out in accordance to the law prevail ing. In case of absence of law,

manual that contains the principles and procedures is followed.

Quarterly audit reports are prepared and submitted to corporate office.

Also a monthly statement is made available to the employees of f inance

department through networked computer system.

Important activit ies of internal audit are:-

Purchase order audit.

Finance audit

MSRCASC - 58

Kinetic Engineering Limited Commercial contracts

Site audit

Special study.

BOOKS & BUDGET

BOOKS

Books section of f inance department tr ies to support the various

accounting functions. It tr ies to ensure a proper coordination among

various sections of f inance department in maintaining accounts.

Books section on the basis of the statement received from other

section prepares monthly tr ial balance and quarterly balance sheet. The

internal audit helps in maintaining transparency and stabili ty.

BUDGET

The corporate off ice sets yearly budgets and targets. Such set

budgets and targets are communicated to the other regional offices.

Monthly statements are prepared to identify the deviations of the actual

from the targets or budget.

The commonly prepared statements are:-

Projected turnover

Projected cash flow

Projected profit & loss account

Project balance sheet

MSRCASC - 59


ESTABLISHMENT

This function mainly deals with components of salary. An important

factor for determining salary is attendance. The computer records the

attendance of the employees through swipe-in-cards.

The salary includes the fol lowing:-

Basic pay

DA(dearness allowance)

HRA(House rent al lowance)

Conveyance allowance

COMMERCIAL SECTION

Preparation of turnover plans

Periodical monitoring of the achievements and comparing it

with the set standard

Bil l ing, invoicing and dispatch.

CASH SECTION

The cash section makes payment through issuing of cheques. All bi l ls are

made available to cash section through networked computers.

Cash section also makes direct payment in cash for bi l ls below

20000. A cash counter is made available where cash is issued against

vouchers of payment.

MSRCASC - 60

CMD

JMD

VP(Finance)

Deputy Manager

GM (Finance)

MD

Pre-audit Wing

Asst. Manager

Asst. Manager

Asst. Manager


Organization Chart- Finance Department

MSRCASC - 61


MANAGEMENT INFORMATION SYSTEM DEPARTMENT

Organization has grown in complexity to levels, which are unprecedented, and

information plays a vital role in holding together and co-coordinating organization.

Information is the mortar that holds together the edifice in the modern multiproduct,

multioccupied, multilocation and multidivisional organizations.

MIS department of Kinetic Engineering Limited plays a very important and

efficient role for the organization and its integration and co-ordination.

The computerized office work is handled in this department. They are working

towards networking to make the whole organization Atomize and inter-connect different

department like Accounts, Marketing, Human Resources, Administration section, etc.

through the network of computers and for easy handling of the different departments

and smooth flow of information.

Objectives:-

1) To integrate the different department of an organization.

2) To provide information for decision-making.

3) To collect and store data and furnish it as and when required by different

levels of management.

4) To keep informing about the activities at different levels of organization to the

top-level management.

5) To furnish information to board for decision-making.

6) To co-ordinate the different activities and help in smooth functioning of the

organization.

MSRCASC - 62


Functions:-

The functions of MIS dept in Kinetic Engineering Limited are as under:-

1) To furnish monthly, quarterly, half yearly and annual reports.

2) Collect the data from internal and external sources, compile it and store it as

and when required by the organization.

3) Providing information to the board and thereby helping in decision-making.

4) Catering information to the different departments and divisional heads as and

when needed and help them in smooth functioning.

5) To furnish computer related works such as billing, sales accounting, pay roll,

GIS, DIS.

6) Annual budget through integrated business plan.

7) Conducting monthly variance analysis.

8) Day to day computerization activities of organization.

Management of Information System: -

MIS manages its function through the implementation of Windows 2000 D2k

(Developer 2000) which is used as front end, and Oracle as backend.

In addition its implemented 2 packages.

a) Billing package.

b) Sales a accounting and payroll.

The whole packages are implemented through ERP module i.e. (enterprise

Resources Planning).

The whole processing is done through the networking, which is pertained only

within MIS section. The process is under program for implementing the network

throughout the organization.

MSRCASC - 63


METHODOLOGY

Common Communication platforms planned:

1) ADVERTISING

Print and broadcast advertisements are already being aired on the

television screens including all the major channels.

2) SALES PROMOTIONS

Various interesting premium gifts or sti l l in the processing with

discussions between the major dealers and the Company officials.

3) TRADE SHOWS

The team also conducted various road shows in and around

Bangalore hot spots where it would attract lot of the target

audience.

4) PERSONNEL SELLING

Under the segment of the integrated marketing communication sales

meeting were arranged with various auto consultants and two

wheeler mechanics. A well understood pictures about the features

of the vehicles were told to them. So that they can tell to their

customers.

MSRCASC - 64


Steps Formula ted In Developing Ef fec t ive Communicat ion By The Company:

STEP 1. IDENTIFY TARGET AUDIENCE

The target customers were divided basically on the basis of age, sex and

li fe style. Here the target customers does not mean only the end users..

But also the people who are actively involved in the purchase decision

making process.

1) TEENAGERS .

This group consists of the young gogetters with the age

group between 18 And 22 . This group was primari ly targeted because

they are the people in their helms at their college, Kinetic vehicles

doesn’t only support their pockets but also their l i fe styles.

2) LADIES : HOUSE WIVES / WORKING

This group was chosen because Kinetic vehicles exactly f i t in the

category of a l ight weight super pickup vehicle which can be very easily

handled. This also has the advantage of large storage spacer below the

seat and a large leg space to suit their form of dressing.

3) PARENTS/FAMILY

This group was chosen because the parents are the main factors

who play a big rol l in the ultimate decision making to buy any product in a

family. Therefore if they are convinced then it would be a good sale

through in terms of generation of a good number of sale enquiries.

MSRCASC - 65


STEP 2: DETERMINE OBJECTIVE

The various important objectives to be achieved are discussed here and

the work schedule is planned accordingly with main objective. Taking the

product’s Awareness level to the maximum possible extent coupled with

sale if possible.

STEP 3: DESIGN MESSAGE

This is a very interesting stage. Here is what you decide, how do you tel l

the message or how you would communicate with audience. The message

was formulated in accordance with the Kinetic’s image as of the best

quality for a best buyer . The message basically had to identify the

vehicle’s fr iendly look affordable price and the mileage.

STEP 4: SELECT CHANNELS

Selecting the channel was a dif f icult task because of the diversity of

options for better creation, the channels to be used were divided into

broadcasting media (TV and radio) and print Media which consists of

News papers, Magazines, bi l l boards, direct mail etc., There were

advertisements going on in the TV channels along with certain ads in

leading news papers and magazines.

STEP 5: ESTABLISH BUDGET

The total amount of money that will be spent on the promotional mix

wil l depend on the promotional strategies that have been formulated. The

amount al lotted to each event wil l depend on the relative importance due

to factors like the consumer characteristics of dif ferent target audience.

MSRCASC - 66

Kinetic Engineering Limited Here an Objective task approach model of al locating budget shall be

used.

STEP 6: TO DECIDE ON MEDIA MIX

A healthy mix of ads on TV, news papers, Magazines, personal

interaction with customers, brief ups for the interested inside the

showroom and many more such things had been done.

STEP 7 : MEASURE RESULTS

The results were analysed in accordance with the number of enquiry

calls generated at the dealers. There would be a dist inction between the

enquiry calls as hot calls and cold calls. Hot calls were those calls made

by the customers which can be turned towards a probable sale.

PROMOTIONAL ACTIVITIES CARRIED OUT: 1) BRAND VISIBILITY PROMOS

This part of the work which is the main thing had to be executed

very properly with at most precision. Here what we actually tr ied to do

was, we wanted people/customers to know about Kinetic vehicles. I t was

all sort of giving some prior information about the products. This created

a l it t le degree of pre-promo curiosity among the customers.

Here we had two plans.

A) PASTING OF POSTERS/STICKERS AT STRATEGIC LOCATIONS:

MSRCASC - 67


We had selected few hangouts of the young people where they

would spend a sufficient amount of t ime in the day. The places were like

cool joints, dose camps, riche rich stops, coffee bars, internet parlors etc,

near al l the prominent colleges and residential areas. Here we pasted the

posters so that it was necessary for us that our audience had to know

something about our products. This helped us further when we went there

with the vehicles, everybody was curious to know about the Kinetic

vehicles.

B) BRINGING NEW KINETIC VEHICLES ON THE ROADS.

This activity was very much of fun, here we were supposed to move

around the city in the new models of Kinetic vehicles on the way stop at

strategic youth hangout points l ike local pan stal ls, tea shops, coffee

bars, ice cream parlors, cyber centers etc, thus creating much more hype

about the product.

2) MEETING THE AUTO CONSULTANTS AND LOCAL MECHANICS

This activity would be a part of our building the foundation strategy.

In this segment of our activity planner we met the local mechanics and

local auto consultants (two wheelers) who are in the business of sell ing

second hand/used vehicles, this activity is of high importance’s because

if we try and convince them, then in turn would advocate the same to

their cl ients, thus it would be a true marketing done. There were also

meetings done the two wheeler mechanics, this was done because local

mechanics influence the purchase decision of a two wheeler, when

anybody wants to purchase a new vehicle they wil l consult the mechanics

and ask their view about the vehicle they go in for the purchase only after

getting a favorable feed back from the mechanic. This activity was carried

MSRCASC - 68

Kinetic Engineering Limited out for a period of two-three days covering all the major parts of

Bangalore.

3) IN HOUSE/COLLEGE, CAMPUS ACTIVITIES

In this segment we visited some of the well known colleges in

Bangalore, where we met with the concerned college authorit ies and

pasted the posters and within the college campus at strategic points l ike

canteen, kiosk, sports room, parking zone etc. There was much anxiety

about the new Kinetic vehicle models in the students. This helped us in

our further activit ies because the students who form a major part of our

target audience had information/awareness about new Kinetic models.

4) TEST RIDES.

This segment of our promotional plan was the most interesting one

among the whole process. Here we approached prominent colleges in

our zone and conducted test r ides for the young enthusiastic college

goers. One of the interesting finding here was that more than the male

population it was the female population who were most inquisit ive.

5) EXHIBITS.

In this activity we had a very tough job on our hands. We had to

interact with al l of the target audience of our promotional campaign. Here

we went to al l the family visit ing places like Big Bazaar, Forum, Garuda

Mall, Shopping centers, restaurants and Cinema theaters etc, and

exhibited the vehicles we had to answer a lot of questions regarding the

vehicle model style, quantity, pick up etc.

6) MEETING PROSPECTIVE CUSTOMERS IN THEIR WORK PLACES.

MSRCASC - 69


Here we went to the work places of our prospective customers and

explained them regarding new Kinetic mopeds, i ts attractive features, and

loan schemes available. The ones who were interested to have a test r ide

were given a ride. We used to get their response regarding newly

launched Kinetic vehicles and their chances of buying.

sChapter 4

DATA ANALYSIS AND INTERPRETATION

TABLE 4.1: SHOWING THE AGE GROUP OF THE RESPONDENTS

Age No. Of Respondents Respondents (in %)

18-25 Yrs 34 34 %

25-35 Yrs 38 38 %

35-45 Yrs 17 17 %

45 and above 11 11 %

MSRCASC - 70

Kinetic Engineering Limited ANALYSIS:

From the above table it can be concluded that 34% of the customers are between the

ages of 18 to 25 yrs where as 38% are between the age of 25 to 35yrs.

19% of the respondents are between the age of 35 to 45 yrs whereas only 11% of the

respondents are 45 yrs and above.

GRAPH 4.1 : SHOWING THE AGE GROUP OF THE RESPONDENTS

34%

38%

17%

11%

Respondents (in %)

18-25 Yrs25-35 Yrs35-45 Yrs45 and above

MSRCASC - 71


INFERENCE:

The majority of the respondents are between the age of 25-35 years of their age, the

reason being this bike is meant for youngsters because of its stylish looks and its easy

control.people above the age of 45 generally do not prefer bikes instead they go for

travelling in four wheelers.

TABLE 4.2: SHOWING THE OCCUPATION OF THE OWNERS OF KINETIC – HONDA

Occupation No. Of Respondents Respondents (in %)

Student 48 48 %

Working Professional 20 20 %

Government Officer 23 23 %

Business 9 9 %

MSRCASC - 72

Kinetic Engineering Limited ANALYSIS:

From the above table we analyze that 48% of the respondents who uses Kinetic brand

are Students whereas 23% are Government officers. We notice that 20% are working

Professionals and only 9% who uses the product are from the business sector.

GRAPH 4.2 : SHOWING THE OCCUPATION OF THE OWNERS OF KINETIC – HONDA

48%

20%

23%

9%

Respondents (in %)

StudentWorking ProfessionalGovernment OfficerBusiness

MSRCASC - 73

Kinetic Engineering Limited INFERENCE:

We infer that most of the students prefer this bike because of its low maintenance cost,

good mileage, speed, comfort, as well as its stylish look. Government officers also

mostly prefer this product because of its low maintenance cost. Whereas people doing

business prefer this product the least because of the snobbish effect and status

symbol.

Particulars No. Of Respondents Respondents (in %)

Yes 76 76 %

No 24 24 %

TABLE 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE OF THE KINETIC - HONDA

ANALYSIS:

From the above table we analyze that 76% of the respondents are aware of the new

Kinetic HONDA launches whereas 24% are not aware.

MSRCASC - 74


GRAPH 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE OF THE KINETIC - HONDA

76%

24%

Respondents (in %)

YesNo

MSRCASC - 75


Majority of the respondents knew about the new launches of the product, because of its

heavy advertisements, popularity of the product, word of mouth. People who are not

aware about its new launches also exist.

TABLE 4.4: SHOWING THE RESPONDENTS SATISFACTION AS PER THE REQUIREMENTS FROM A SCOOTER


Yes 87 87 %

No 13 13 %

ANALYSIS:-

From the above table we analyze that 87% of the majority are satisfied with our

product. 13% on the contrary are not satisfied.

MSRCASC - 76


GRAPH 4.4: SHOWING THE RESPONDENTS SATISFACTION AS PER THE REQUIREMENTS FROM A SCOOTER

87%

13%

Respondents (in %)

YesNo

INFERENCE:

MSRCASC - 77

Kinetic Engineering Limited The inference was that the majority of the respondents feel that the vehicle does

satisfies its expected requirements because of its self start facility as well as sizzling

and stylish looks when compared to other scooters.

TABLE 4.5: SHOWING THE RESPONDENTS SATISFACTION BASED ON THE FEATURES OF KINETIC – HONDA SCOOTER

Particulars Satisfied Not Satisfied Satisfied ( %) Not Satisfied(%)

Pick Up 78 22 78 22

Price 89 11 89 11

Easy Drive 86 14 86 14

Aesthetic Looks 79 21 79 21

Mileage 92 8 92 8

ANALYSIS:

From the above table we analyze, as follows for the different specifications:

1. Pick Up: 78% of the respondents are satisfied with the pickup of the vehicle

whereas 22% are unsatisfied on the contrary.

2. Price: 89% of the respondents are satisfied with the price of the vehicle whereas

11% are unsatisfied with the price of the vehicle.

MSRCASC - 78


3. Easy Drive: 86% of the respondents are satisfied with the easy riding feature of

the vehicle whereas 14 % were not satisfied about the same feature.

4. Aesthetic looks: 79% of the respondents are satisfied with the aesthetic looks of

the vehicle whereas 21% are not satisfied and expect better looks.

5. Mileage: 92% of the respondents were completely satisfied with the mileage factor

of the vehicle whereas 8% were not satisfied with the mileage of the scooter.

GRAPH 4.5: SHOWING THE RESPONDENTS SATISFACTION BASED ON THE FEATURES OF KINETIC – HONDA SCOOTER

Pick Up Price Easy Drive Aesthetic Looks Mileage0

102030405060708090

100

78

89 8679

92

22

11 1421

8

Satisfied(In %) Not Satisfied(In %)

Inference:

MSRCASC - 79

Kinetic Engineering Limited Majority of the respondents were satisfied with the product because of its pick up, price,

easy drive, aesthetic looks, and mileage. The scooty is designed in such a way

especially keeping these factors in consideration.

TABLE 4.6: SHOWING RESPONDENTS SATIFICATION BASED ON THE PROMOTION OF KINETIC – HONDA SCOOTER


Satisfied 81 81 %

Not Satisfied 19 19 %

ANALYSIS:

From the above table we analyses that 81% are satisfied with the promotion of the

Kinetic Honda Scooter whereas 19% are not satisfied and expect better promotional

activities.

MSRCASC - 80


GRAPH 4.6: SHOWING RESPONDENTS PERCEPTION BASED ON THE PRESENT PROMOTION OF KINETIC – HONDA SCOOTER

81%

19%

Respondents (in %)

SatisfiedNot Satisfied

INFERENCE:

MSRCASC - 81

Kinetic Engineering Limited Majority of the respondents were satisfied with its promotional activities. The reason

being regular advertisements on the telivision. Newspapers, magazines, activities taken

up by various showrooms of the product to increase the sales and awareness of the

vehicle.

TABLE 4.7: SHOWING THE OTHER BRANDS OF SCOOTER RESPONDENTS PREFER


Hero Honda 38 38%

Bajaj 24 24%

TVS 20 20%

Others 18 18%

ANALYSIS:

MSRCASC - 82

Kinetic Engineering Limited We analyze that 38% of the respondents prefer to buy the HERO HONDA, 24% prefer

the Bajaj, 20% prefer the TVS and 18% prefer to buy the other brands in the Scooter

segment.

GRAPH 4.7: SHOWING THE OTHER BRANDS OF SCOOTER RESPONDENTS PREFER

38%

24%

20%

18%

Respondents (in %)

Hero HondaBajajTVSOthers

MSRCASC - 83


INFERENCE:

Majority of the respondents prefer to buy hero Honda and Bajaj. These brands are very

old and popular among the people of our country of all the age groups. The product of

these brands have given a wonderful performance in past which gives them an upper

hand as compared to Kinetic.

TABLE 4.8: SHOWING HOW RESPONDENTS LEARNT THE EXISTANCE OF THE KINETIC HONDA SCOOTER


Advertisement 23 23%

Family information 26 26%

Friend’s recommendation 38 38%

Dealer’s recommendation 13 13%

ANALYSIS:

From the above table we analyze that majority of the respondents summing to 38% got

to know about the scooter through Friend’s Recommendation, 26% got to know about

MSRCASC - 84

Kinetic Engineering Limited the vehicle through Family Information, 23% through advertisements and 13% from the

Dealers recommendation.

GRAPH 4.8: SHOWING HOW RESPONDENTS LEARNT THE EXISTANCE OF THE KINETIC HONDA SCOOTER

23%

26%

38%

13%

Respondents (in %)

AdvertisementFamily informationFriend’s recommendationDealer’s recommendation

INFERENCE:

MSRCASC - 85


Majority of the respondents got to know about kinetic Honda because of friends

recommendations. People belonging to a young age group generally get impressed by

what their friends are satisfied with. This is known as word of mouth advertisements.

TABLE 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE


Fuel economy 40 40%

Less physical efforts 24 24%

Better looks 16 16%

Low maintenance cost 20 20%

ANALYSIS:

From the above table we analyze that the majority of the respondents prefer the Kinetic

Honda because of its fuel economy summing up to 40%, the Effortless riding feature is

MSRCASC - 86

Kinetic Engineering Limited preferred by 24%, 16% prefer this vehicle because of the looks and 20% prefer it

because of low maintenance cost.

GRAPH 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE

40%

24%

16%

20%

Respondents (in %)

Fuel economyLess physical effortsBetter looksLow maintenance cost

INFERENCE:

MSRCASC - 87


Majority of the respondents prefer this product because of its fuel economy. In today’s

world, every individual wants to pay less and acquire more. Kinetic provides a good

mileage. Its self start facility helps the rider to put in less physical efforts.

TABLE 4.10: SHOWING WHAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY THINK OF KINETIC HONDA


Economical 36 36%

Durable 24 24%

Smooth Bike 18 18%

Unsafe Bike 10 10%

Do not like the model 12 12%

ANALYSIS:

MSRCASC - 88


From the above table we analyze that 36% being the majority of the respondents think

the bike is economical comes to their mind first. 24% think it is Durable. 18% think it is

a Smooth bike and 12% do not like the model.

GRAPH 4.10: SHOWING WHAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY THINK OF KINETIC HONDA

36%

24%

18%

10%

12%

Respondents (in %)

EconomicalDurableSmooth BikeUnsafe BikeDo not like the model

INFERENCE:

MSRCASC - 89

Kinetic Engineering Limited This vehicle is popular among the students as well as the young group because of its

economical factors. It’s good for students who generally have a limited budget n

youngsters who have just started with their careers and cannot afford to spend much

on the travelling.

GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF KINETIC HONDA


Price Factors 24 24%

Mileage 36 36%

Maintenance 18 18%

After sales services 16 16%

Cost of replacement

parts6 6%

ANALYSIS:

MSRCASC - 90

Kinetic Engineering Limited From the above table we analyze that the 36% feel the mileage of the vehicle is the

most distinct feature. 24% feel it is the Price Factor. 18% feel it is the maintenance

facility. 16% feel it is the after sales services of the vehicle which is the most distinct

feature of the vehicle.

GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF KINETIC HONDA

24%

36%

18%

16%

6%

Respondents (in %)

Price FactorsMileageMaintenanceAfter sales servicesCost of replacement parts

INFERENCE:

MSRCASC - 91


The most distinct feature about the product is its mileage because of its good engine

capacity and so people using this product can save their money. Also prices of this

product are comparatively low when compared to other big brands. This makes it a

distinct feature for the people to buy this product.

TABLE 4.12: SHOWING THE RESPONDENTS OPINION TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA


Excellent 27 27%

Good 44 44%

Average 22 22%

Poor 7 7%

ANALYSIS:

From the above table we analyze that the majority of the respondents summing up 44%

feel the technology used is good. 27% feel it is excellent. 22% feel average. 7% rate it

Poor.

MSRCASC - 92


GRAPH 4.12: SHOWING THE RESPONDENTS OPINION TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA

27%

44%

22%

7%

Respondents (in %)

ExcellentGoodAveragePoor

MSRCASC - 93


Majority of the respondents think that the product is good rather than

being excellent for the reason being that i t has a kind of scope of

improvement when compared to other big brands of scooties in the

market.

TABLE 4.1 3: SHOWING WHERE THE VEHICLE IS GIVEN FOR SERVICING BY THE CUSOMERS

Particulars No. of respondents No. of respondents (%)

Authorised dealers 56 56 %

Authorised service stations 28 28 %

Other mechanics 16 16 %

ANALYSIS:

From the above table we analyze that the majority of the respondents summing up to

56% service their vehicles at the Authorized Dealers. 28% authorized service

stations.16 % service their vehicles at other mechanics.

MSRCASC - 94


GRAPH 4.13: SHOWING WHERE THE VEHICLE IS GIVEN FOR SERVICING BY THE CUSOMERS

56%28%

16%

No. Of respondents (in %)

Authorised dealersAuthorised service stationsOther mechanics

INFERENCE:

MSRCASC - 95


Majority of the respondents give their vehicles for service to the authorized dealers

because they service the vehicles using latest technology , and use genuine spare

parts for the vehicles. They also charge genuinely and provide good satisfaction to

customers.

TABLE 4.14: SHOWING IF RESPONDENTS WILL RECOMMEND THE VEHICLE TO OTHERS BASED ON IT’S PERFORMANCE

Particulars No.of respondents No. Of respondents (in %)

YES 78 78

NO 22 22

ANALYSIS:

We have analyzed that the majority of the respondents summing up to 78% would

recommend the vehicle to the others where as 22 % would not prefer to recommend

the vehicle to others.

MSRCASC - 96


GRAPH 4.14: SHOWING IF RESPONDENTS WILL RECOMMEND THE VEHICLE TO OTHERS BASED ON IT’S PERFORMANCE

78%

22%


YESNO

MSRCASC - 97


INFERENCE:

Maximum people would like to recommend this product to others. The reason being

that this product gives a satisfactory performance overall.

TABLE 4.1 5: SHOWING WHAT IS THE EXPECTATIONS OF RESPONDENTS FROM THE SERVICE DEALERS


Fast Delivery Of vehicles 32 32

Good & Prompt service 42 42

Mobile Service 18 18

Others 8 8

ANALYSIS:

MSRCASC - 98


We analyze from the above table that majority of the respondents summing up to 42%

Good and Prompt Service. 32% expect fast delivery of vehicles. 18 % expect mobile

servicing and just 8 % expect other services.

G RAPH 4.15: SHOWING WHAT IS THE EXPECTATIONS OF RESPONDENTS FROM THE SERVICE DEALERS

32%

42%

18%

8%


Fast Delivery Of vehiclesGood & Prompt serviceMobile ServiceOthers

MSRCASC - 99


INFERENCE:

Maximum of the respondents expect from the dealer that they should get good and

prompt services. Also in today’s busy life everybody wants a fast delivery of the

product. This product is used by Working professionals and students and their life is

very fast, so they expect that the problems related to the product gets solved as soon

as possible.

TABLE 4.16: SHOWING THE MODE OF PAYMENT PREFERRED BY RESPONDENTS


Cash/ Cheque 43 43

Finance / Loans 57 57

ANALYSIS:

MSRCASC - 100

Kinetic Engineering Limited We analyze from the above table that majority of the respondents prefer taking financial

loans whereas 43% prefer Cash or cheque payments.

TABLE 4.16: SHOWING THE MODE OF PAYMENT PREFERRED BY RESPONDENTS

43%

57%


Cash/ ChequeFinance / Loans

MSRCASC - 101


INFERENCE:Pe op l e ge n era l l y p re f e r t o p a y f o r t he p ro du c t o n a l oa n b as i s i n o rde r t o g e t t a x b en e f i t s o r n o t t o b lo c k t h e i r

l i qu id c a s h i n a s i n g l e p rod u c t . T h i s p ro du c t i s ge n er a l l y f amo us amo ng t he s t ud e n t s so t he y c a nn o t a f f o rd t o pa y

a t o ne s h o t .

Chapter 5

SUMMARY OF FINDINGS

1) We infer that most of the students prefer this bike because of its low maintenance

cost, good mileage, speed, comfort, as well as its stylish look. Government officers also



symbol.

2) We infer that most of the students prefer this bike because of its low maintenance

cost, good mileage, speed, comfort, as well as its stylish look. Government officers also



symbol.

MSRCASC - 102

Kinetic Engineering Limited 3) Majority of the respondents knew about the new launches of the product, because of

its heavy advertisements, popularity of the product, word of mouth. People who are not

aware about its new launches also exist.

4) The inference was that the majority of the respondents feel that the vehicle does

satisfies its expected requirements because of its self start facility as well as sizzling

and stylish looks when compared to other scooters.

5) Majority of the respondents were satisfied with the product because of its pick up,

price, easy drive, aesthetic looks, mileage. The scooty is designed in such a way

especially keeping these factors in consideration.

6) Majority of the respondents were satisfied with its promotional activities. The reason

being regular advertisements on the television. Newspapers, magazines, activities

taken up by various showrooms of the product to increase the sales and awareness of

the vehicle.

7) Majority of the respondents prefer to buy hero Honda and Bajaj. These brands are

very old and popular among the people of our country of all the age groups. The

product of these brands have given a wonderful performance in past which gives them

an upper hand as compared to Kinetic.

8) Majority of the respondents got to know about kinetic Honda because of friends

recommendations. People belonging to a young age group generally get impressed by

what their friends are satisfied with. This is known as word of mouth advertisements.

MSRCASC - 103

Kinetic Engineering Limited 9) Majority of the respondents prefer this product because of its fuel economy. In

today’s world, every individual wants to pay less and acquire more. Kinetic provides a

good mileage. Its self start facility helps the rider to put in less physical efforts.

10) This vehicle is popular among the students as well as the young group because of

its economical factors. Its good for students who generally have a limited budget n

youngsters who have just started with their careers and cannot afford to spend much

on the travelling.

11) The most distinct feature about the product is its mileage because of its good

engine capacity and so people using this product can save their money. Also prices of

this product are comparatively low when compared to other big brands. This makes it a

distinct feature for the people to buy this product.

12) Majority of the respondents think that the product is good rather than

being excellent for the reason being that i t has a kind of scope of

improvement when compared to other big brands of Scooties in the

market.

MSRCASC - 104

Kinetic Engineering Limited 13) Majority of the respondents give their vehicles for service to the authorized dealers

because they service the vehicles using latest technology , and use genuine spare

parts for the vehicles. They also charge genuinely and provide good satisfaction to

customers.

14) Maximum people would like to recommend this product to others . the reason

being that this product gives a satisfactory performance overall.

15) Maximum of the respondents expect from the dealer that they should get good

and prompt services. Also in today’s busy life everybody wants a fast delivery of the

product. This product is used by Working professionals and students and their life is

very fast, so they expect that the problems related to the product gets solved as soon

as possible.

16) People generally prefer to pay for the product on a loan basis in order to get tax

benefits or not to block their liquid cash in a single product. This product is generally

famous among the students so they cannot afford to pay at one shot.

MSRCASC - 105


SUGGESTIONS

The f irst thing that should be done by Kinetic is to increase its market

share in two wheeler segment by:

1) Extensive advertising as the brand awareness level of kinetic is low

as compared to the competitor.

2) Kinetic should introduce more fuel efficient vehicles.

3) Scooterettes must be made li tt le more trendy by its colours,

aesthetic look, and l it t le bulky in looks, so that customers should

think that they are getting more for less money.

MSRCASC - 106

Kinetic Engineering Limited 4) Customer relationship should increase so that customer’s should

think that company is concerned for its customers which in turn

increases brand loyalty.

5) Aggressive advertising with promotion activit ies has to be taken so

that people should feel the presence.

6) Sports and some other activit ies l ike f i lm fare awards, fashion

shows have to be sponsored so that brand awareness can be

increased.

7) Each product should have brand ambassador who has good image,

so that people wil l l ink him/her with kinetic. Hence increase in

sales.

8) Dealers should be more friendly, should be trained in customer

relationship management. Because they are the ones whom the

customers meet for al l their queries.

9) Dealers should be contacted regularly, because customers tel l their

feedback to them. And those feedbacks should be looked into.

10) Maintenance cost of the vehicles should be decreased by better

design and development.

11) Last but no the least, a sooterette should always be promoted by

Women only. Because, as most of the perspective customers are

Women and they feeling comfortable with Women promoters only.

MSRCASC - 107


CONCLUSION

India is the 2nd largest two wheeler manufacturer in the world. The two

wheeler industry is highly fragmented in nature. In the last ten years,

supply has outstripped demand, as multinationals and domestic players

have set up large-scale manufacturing facil i t ies to meet future needs. As

a result, there is an absence of pricing power with manufacturers.

Competit ion is expected to increase further, as global majors are

planning to enter India either through direct investment or imports.

This industry is highly capital intensive in nature. Two wheeler segment

is capital and technology intensive. Costs involved in branding,

distribution network and spare parts availabil ity increase entry barriers.

With the Indian market moving towards complying with global standards,

capital expenditure wil l r ise to attune to future safety regulations.

Kinetic Engineering being a 35 years old company has a very l i tt le market

share in every segment of two wheeler. But, i t has a comparable market

share in scooter and scooterette segment. It has to boost i ts advertising

MSRCASC - 108

Kinetic Engineering Limited as the brand awareness level of kinetic is low as compared to the

competitor.

Customer relationship should increase so that customer’s should think

that company is concerned for i ts customers which inturn increases brand

loyalty. Maintenance cost of the vehicles should be decreased by better

design and development.

So, aggressive advert ising with promotion activit ies has to be taken by

Kinetic Engineering so that people should feel the presence of kinetic in

the market.

MSRCASC - 109


BIBLIOGRAPHY

Books Referred:

1. Henry Assael Consumer Behavior

2. Sherlekar & Sherlekar Principles of Mrkt

3. Steve Condiff & Govani Sales Management

4. Phillip Kotler Marketing Mangt

Websites:

o http://www.kineticindia.com/

o http://www.autoindia.com/

o http://www. Bikes.com/

o http://www.thehindu.com/

o http://www.domain-b.com/

o http://www.etstrategicmarkets.com/

MSRCASC - 110

http://www.etstrategicmarkets.com/

http://www.domain-b.com/

http://www.thehindu.com/

http://www.autoindia.com/

http://www.kineticindia.com/


ANNEXURES

Name :

1. Which age group do you belong to?

18 to 25 years

25 to 35yrs

35 to 45 yrs

45 and above

2. What is your Occupation?

STUDENT

GOVERNMENT OFFICER

BUSINESS PROFESSIONAL

3. Are you aware of Kinetic Honda?

MSRCASC - 111


Yes

No

4. Are you satisfied with the vehicle?

Yes

No

5. Respondents satisfaction level on critical attributes

A. Pick up

Satisfied Unsatisfied

B. Price


C. Easy drive


D. Aesthetic looks


E. Mileage


6. Are you satisfied with the present promotion?

Satisfied

MSRCASC - 112


Unsatisfied

7. Which other bike would you have preferred to buy?

Yamaha motors T VS motors Bajaj motors Others

8. How did you get to know about Kinetic Honda ?

Advertisement Family information Friend’s recommendation Dealer’s recommendation

9. You prefer Kinetic -Honda in comparison to other brands because of:

Fuel economy Less physical efforts Better looks Low maintenance cost

10. What comes to your mind when you think of Kinetic-Hond?

MSRCASC - 113


Economical Durable Smooth Bike Unsafe Bike Do not like the model Outdated style

11. What is the most distinct feature about Kinetic compared to the other Brands of bikes?

Price Factor Mileage Maintenance After sales services Cost of replacement parts

12. Do you think the technology used by Kinetic-Honda is :

Excellent Good Average Poor

13 . Wh er e do yo u g iv e y our v eh ic le fo r s er v ic e ?

Authorized Dealers Authorised Service Stations Other Mechanics

MSRCASC - 114


14. Taking into account the overall performance of Kinetic – Honda, would you recommend it others?

YES NO

15. What service do you expect from a Dealer?

Fast Delivery of vehicle Good & Prompt Service Mobile service Others

16. What mode of payment do you prefer?

Cash/Cheques Finance/Loan

MSRCASC - 115


MSRCASC - 116

Kinetic Honda Print Version 2

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