MEASURING THE SUCCESS OF LATEST TWO-WHEELERS IN INDIAN AUTOMOBILE INDUSTRY

MEASURING THE SUCCESS OF LATEST TWO-WHEELERS

IN

INDIAN AUTOMOBILE INDUSTRY

AProject report

Submitted in partial fulfillment of theRequirements for the award of the Degree of

Integrated Dual Degree ProgramIn

Master of Business Administration

ByG. Guna Sekhar

(Roll.No. 10011U0304)

Under the Guidance of Dr. N. Venkatesh,Lecturer in Management Studies,

Department of Humanities and Social Sciences.

Department of Humanities and Social Sciences,JNTUH College of Engineering, Kukatpally,

JNTU, Hyderabad-500085.May-2015


JNTU, Hyderabad-500 085

CERTIFICATE FROM THE HEAD OF THE

DEPARTMENT

This is to certify that project work entitled “Measuring the

success of latest two-wheelers in Indian automobile industry”

being submitted by G.Guna Sekhar bearing Roll.No.10011U0304, in

partial fulfillment of the requirements for the award of the

degree of Integrated Dual Degree Program in Master of Business

Administrationis a record of bonafide work carried by her.

The results of investigations enclosed in this report have

been verified and found satisfactory. The results embodied

in this project report have not been submitted to any other

University or Institute for the award of any degree or

diploma.

Dr. N. V. S. N. Lakshmi

Assistant Professor (English) and Head Dept. of Humanities and Social SciencesJNTUH College of Engineering Hyderabad

Kukatpally,Hyderabad-500 085


JNTU, Hyderabad-500 085

CERTIFICATE

FROM SUPERVISOR

This is to certify that project work entitled “Measuring the

success of latest two-wheelers in Indian automobile

industry” being submitted by bearing Roll.No.10011U0304, in

partial fulfillment of the requirements for the award of the

degree of Integrated Dual Degree Program in Master of

Business Administration is a record of bonafide work carried

by her.

The results of investigations enclosed in this report have

been verified and found satisfactory. The results embodied

in this project report have not been submitted to any other

University or Institute for the award of any degree or

diploma.

Mr. N. VenkateshLecturer in Management Studies

Dept. of Humanities and Social SciencesJNTUH College of Engineering Hyderabad

Kukatpally, Hyderabad-500 085

Department of Humanities and Social Sciences,

JNTUH College of Engineering, Kukatpally,JNTU, Hyderabad-500 085

DECLARATION BY THE CANDIDATE

I, G.Guna Sekhar (Roll.No.10011U0304), hereby declare that

the project report entitled “Measuring the success of latest

two-wheelers in Indian automobile industry”, carried out by

me under the guidance of Mr. N. Venkatesh, lecturer in

Management Studies, Department of Humanities and Social

Sciences, is submitted in partial fulfillment of the

requirements for the award of the Degree of Integrated Dual

Degree Program in Master of Business Administration.

This is a record of bonafide work carried out by me and the

results embodied in this project have not been reproduced or

copied from any source. The results embodied in this project

report have not been submitted to any other University or

Institute for the award of any other degree or diploma.

G.Guna sekharRoll.No. 10011U304

B.Tech+MBA(Marketing)Department of Humanities and Social Sciences

JNTUH College of Engineering HyderabadKukatpally, Hyderabad-500 085

ACKNOWLEDGEMENTS

I take this opportunity to express gratitude to Dr. N.V.S.N.Lakshmi, Assistant Professor (English) and Head of the Department of Humanities and Social Sciences, JNTU College of Engineering, Hyderabad for her guidance and encouragement.

I express my heartfelt thanks to my project guide Mr. N. VENKATESH, lecturer in Management Studies, Dept. of Humanities and Social Sciences, JNTU College of Engineering,who has been an excellent guide and also a great source of inspiration to my work.

I would like to thank all the other staff members, both teaching and non-teaching members of Department of Humanities and Social Sciences, JNTU College of Engineering,Hyderabad, who have extended their timely help and eased my task.

My sincere thanks to all my respondents, without whom the project wouldn’t have been successful. I would also extend my thanks to my family and friends for their constant encouragement and support.

G.Guna Sekhar

(Roll.No. 10011U0304)

ABSTRACT

The project “MEASURING THE SUCCESS OF LATEST TWO WHEELER IN

INDIAN AUTOMOBILE MARKET” deals with a critical analysis of

Indian automobile industry and its growth it has shown in past

years. Even though industry has been showing good growth in

numbers it is more important to see whether it is really moving

up the ladder. The growth it shows should be in terms of success

of new product launches. So this project is to analyze the

success rate of new product launches and to see whether the

growth shown in Indian automobile industry is really due to new

product launches and their success.

Indian automobile industry is the second largest two wheeler

manufacturer country in the world. India is also the fifth

largest commercial vehicle manufacturer. Bikes captured 81.5%

market share in India in two wheeler market. Now the project

deals with measuring success of new bikes launched in the past

years. Further, short listing of some bike models have been done

to make the study more specific and effective.

TABLE OF CONTENTS

CHAPTER NO PARTICULARS PAGE NO

1.0 INTRODUCTION 1

1.1 INTRODUCTION 2

1.2 OBJECTIVES OF THE STUDY 4

1.3 INDUSTRY PROFILE 5

1.4 COMPANY PROFILE 10

1.5 PRODUCT PROFILE 11

2.0 LITERATURE REVIEW 16

2.1 CONCEPTUAL DEFINITIONS 17

2.2 LITERATURE REVIEW 22

3.0 RESEARCH METHODOLOGY 24

3.1 RESEARCH DESIGN 25 3.2. SAMPLING DESIGN

26

3.3 DATA COLLECTION DESIGN 26

3.4 ANALYSIS DESIGN 27

4.0 ANALYSIS AND INTERPRETATION 29

5.0 FINDINGS,CONCLUSIONS ANDSUGGESTIONS

5.1 FINDINGS

5.2 CONCLUSIONS

5.3 SUGGESTIONS

6.0 BIBLIOGRAPHY

7.0 APPENDICIES

LIST OF TABLES

TABLE NO TITLE PAGE NO

4.1 DISTRIBUTION OF RETAILERS ON THE BASIS OF AGE 31

4.2 STORAGE MODE OF COCA COLA PRODUCTS 32

4.3 MOST FAST MOVING BRAND IN YOUR SHOP 33

4.4 MOST FAST MOVING BOTLE SIZE 34

4.5 OFFERS INCRESE SALES OF COCA COLA PRODUTS 35

4.6 EFFECTIVE NESS OF VARIOUS TYPE OF ADVERTISEMENT 36

4.7 FREUENCY OF SALES PEOPLE VISIT TO THE STORES 37

4.8 PERCEPTION OF QUALITY 38

4.9 PERCEPTION ON CREDIT POLICY 39

4.10 PERCEPTION ON DISTRIBUTION ACTIVITIES 40

4.11 PERCEPTION OF AVAILABILITY 41

4.12 YOU ARE GETTING MORE PROFITS FROM COMPANY 42

4.13 WHICH COMPANY IS GIVING MORE INCENTIVES? 43

4.14 SATISFACTION LEVEL WITH MARGIN OF PROFIT 44

4.15 PREFERRED INCENTIVES 45

4.16 OVERALL SATISFACTION LEVEL TOWARDS COCA COLA 46

4.17 CHI-SQUARE TESTS 48

4.18 KMO AND BARTLETT'S TEST 53

4.19 ROTATED COMPONENT MATRIX 55

4.20 MODEL SUMMERY 56

4.21 ANOAVA TEST 56

4.22 CORRELATION COEFFICIENTS 57

LIST OF CHARTS

CHART NO TITLE PAGE NO

4.1 DISTRIBUTION OF RETAILERS ON THE BASIS OF AGE 31

4.2 STORAGE MODE OF COCA COLA PRODUCTS 32

4.3 MOST FAST MOVING BRAND IN YOUR SHOP 33

4.4 MOST FAST MOVING BOTLE SIZE 34

4.5 OFFERS INCRESE SALES OF COCA COLA PRODUTS 35

4.6 EFFECTIVE NESS OF VARIOUS TYPE OF ADVERTISEMENT 36

4.7 FREUENCY OF SALES PEOPLE VISIT TO THE STORES 37

4.8 PERCEPTION OF QUALITY 38

4.9 PERCEPTION ON CREDIT POLICY 39

4.10 PERCEPTION ON DISTRIBUTION ACTIVITIES 40

4.11 PERCEPTION OF AVAILABILITY 41

4.12 YOU ARE GETTING MORE PROFITS FROM COMPANY 42

4.13 WHICH COMPANY IS GIVING MORE INCENTIVES? 43

4.14 SATISFACTION LEVEL WITH MARGIN OF PROFIT 44

4.15 PREFERRED INCENTIVES 45

4.16 OVERALL SATISFACTION LEVEL TOWARDS COCA COLA 46

4.17 CHI-SQUARE TESTS 48

CHAPTER-1

INTRODUCTION

1.1 Indian Automobile Industry

The Indian auto industry is one of the largest in the world

with an annual production of 23.48 million vehicles in FY 2014-

15. The automobile industry accounts for 22 per cent of the

country's manufacturing gross domestic product (GDP). An

expanding middle class, a young population, and an increasing

interest of the companies in exploring the rural markets have

made the two wheelers segment (with 80 per cent market share) the

leader of the Indian automobile market. The overall passenger

vehicle segment has 14 per cent market share.

India is also a substantial auto exporter, with solid export

growth expectations for the near future. Various initiatives by

the Government of India and the major automobile players in the

Indian market is expected to make India a leader in the Two

Wheeler and Four Wheeler market in the world by 2020. Indian

domestic automobile companies like Tata Motors, Maruti Suzuki

expanded their production and export operations in and across the

country and since then the industry has only shown signs of

growth.

The automobile industry comprises of heavy vehicles (trucks,

buses, tempos and tractors), passenger cars, and two-wheelers.

The automobile sector today is one of the key sectors of the

country contributing majorly to the economy of India. It directly

and indirectly provides employment to over 10 million people in

the country.

The Indian automobile industry has a well established name

globally being the second largest two wheeler market in the

world, fourth largest commercial vehicle market in the world, and

eleventh largest passenger car market in the world .

The growth of the Indian middleclass along with the growth of the

economy over the last few years has resulted in a host of global

auto giants setting their foot inside the Indian Territory.

Moreover India also provides trained manpower at competitive

costs making the country a manufacturing hub for many foreign

automobile companies. India proves to be a potential market as

compared to most of the other countries which are witnessing

stagnation as far as automobile industry growth is concerned. The

auto sector is one of the biggest job creators, both directly and

indirectly. It is estimated that every job created in an auto

company leads to three to five indirect ancillary jobs.

Market share of Indian automobile industry by volume:

Two wheelers dominate production volumes; in FY14, the

segment accounted for 77 per cent of the total automotive

production in India.

1.2 History and development

The history of the automobile industry in India actually

began about 4,000 years ago when the first wheel was used for

transportation. In the early 15th century, the Portuguese arrived

in China and the interaction of the two cultures led to a variety

of new technologies, including the creation of a wheel that

turned under its own power. The dream a carriage that moved on

its own was realized only in the 18th century when the first car

rolled on the streets. Steam, petroleum gas, electricity and

petrol started to be used in these cars.

Motorcycles in India date back to the year 1955, when the

Government of India required strong, rough, and tough motorcycles

for the Indian Army and the police force in the western part of

the country which had a rough and craggy terrain. The 350cc

'Bullet' manufactured by the Royal Enfield Company of United

Kingdom was the first batch of motorcycles in India. This was the

beginning for the Indian two-wheelers industry. The motorcycles

in India cater to a variety of needs of the consumers. It has

become one most popular modes of transportation, and is preferred

by the daily commuters.

The segment of motorcycles went through a tremendous change in

the 90s and the two wheeler market, especially the motorcycle

market was filled with option. The main cause of the growth in

the segment was the fuel efficient 4 stroke engine. In the

present scenario, the motorcycles in India constitute for 81.5%

of the total Indian two-wheeler market.

The companies manufacturing motorcycles in India are making

necessary innovations to make them safer, more comfortable, user-

friendly and ergonomic. Very high fuel economy equivalents are

often derived by electric motorcycles.

Technological advancements made in other automotive sectors, such

as the car industry, are being applied to two-wheelers. So

technology transfer and adaptation are major foci.

Thus, the motorcycling scenario today in India is critically

poised, wherein the battles of the next decade will be fought

keenly and fiercely. A fine example is competition between Hero

Moto Corp and Honda Motor Company in the Indian market.

PM Narendra Modi launched ‘Make In India’ initiative which was

aimed at encouraging domestic production of services and products

in order to make India the world’s manufacturing hub. The focus

was also to enhance skill development and create jobs within the

country. With the Union Budget, basic rate of Corporate Tax was

reduced from 30% to 25% in next 4 years; accompanied by reducing

exemptions.

FM Arun Jaitley had also announced an annual flow of Rs 20,000

crore for National Investment and Infrastructure Fund. One of the

sectors believed to be leading Make In India initiative from the

front is the automotive industry. Two-wheeler manufacturer Honda

Motor has stated it wants India to be its largest two-wheeler

operation globally. GM aims to make India its new global

manufacturing and export powerhouse in the coming years.

I

The factors for the growth of Indian motorcycles:

The Gross Domestic Product has grown to 8%

The average family income has increased

The finance have become easier to access

The reduction in taxes and duties

Introduction of international standards in India

The teenager and the youth using more and more motorcycles.

1.3 Various Two-wheeler companies:

In the automobile industry there are a many players as the Hero

moto corporation limited, Bajaj auto limited, TVS motor company

limited. The other players of the two wheeler industry as the

kinetic motor company limited, kinetic engineering

limited,LML,YamahamotorsIndialimited,MajesticAuto limited, Royal

Enfield and Honda motorcycle and scooter private limited.

Hero MotoCorp: Going forward, although competition for Hero

MotoCorp is likely to intensify, we do not expect its market

leadership status in the 100cc segment to come under threat any

time soon. The target segment for 100cc bikes are largely

commuters and families, with the purchase meant to address the

consumers’ basic transportation needs at high fuel economy and

low operating costs. Despite being amongst the oldest 2W brands

in India, Hero MotoCorp’s CD Dawn/ Deluxe, Splendor and Passion

models continue to enjoy strong brand equity in both rural as

well as urban markets, supported by regular product upgrades even

as the fundamental platform of these models has remained largely

unchanged. The Splendor brand alone has sold some 17 million

units since its launch in 1994; a testimony that familiarity

breeds consumer confidence, not contempt.

Bajaj Auto: Bajaj Auto had lowered its focus on the lower cc

motorcycle segment in 2008-09 to focus more on the Pulsar brand

in the higher cc performance bike segment. However, the exit from

the 100cc segment lasted only for a brief while as the company

staged a comeback soon thereafter through the launch of

Discover100 realizing that the market for lower-priced commuter

bikes was unlikely to fade away at the pace envisaged. Although

the Discover100 is now amongst the top three selling bikes in

India, Bajaj Auto remains a distant second ranker in the 100cc

bikes segment.

The company has recently initiated a fresh marketing campaign

positioning the Discover100 as a superior product to challenge

the leadership of Hero MotoCorp; however, its ability to grow

market share and sustain it thereafter remains to be seen in the

backdrop of its past record of strategy flip-flop and multiple

product portfolio realignments. Adopting a clear product and

brand strategy is all the more imperative for Bajaj Auto now

given that it may be difficult for it to compete with the likes

of Hero MotoCorp and Honda on the basis of other factors such as

product strength, distribution network strength or lower price.

If it could do so, Bajaj Auto would enhance its ability to remain

a relevant competitor in the 100cc segment.

Honda: When Honda had launched the Twister (110 cc) in December

2009, it was expected to redefine the 100cc segment of

motorcycles on the back of its aggressive styling, higher horse

power, better power-to-weight ratio and competitive pricing.

However, the target consumer segment (lower-middle to middle

income group) perhaps preferred to attach greater preference to

conventional looks, lower overall cost of ownership and higher

resale value than the attributes which the Twister stood for.

Honda seems to have drawn on these consumer insights to have

launched a second bike in the commuter segment, Dream Yuga – a

model that has plane looks but is priced Rs. 2,500 higher than

the entry level Splendor NXG. While it remains to be seen to what

extent this new model from Honda’s stable grows its volumes, the

biggest challenge for Honda would be to strengthen its

distribution network, brand and mind share, particularly in the

rural market which is expected to be the primary growth driver

for 100cc bikes over the medium term.

Yamaha: Despite having a presence of over 25 years in the Indian

market, Yamaha, the second largest two-wheeler manufacturer in

the world, continues to have a low single-digit market share in

the domestic motorcycles segment. This has been partly due to the

company’s relatively lower focus on the Indian market in the past

and partly due its frequent model churn. Having discontinued

several brands in the past such as Alba, G5 and Gladiator,

Yamaha’s quest for achieving a balanced product portfolio

continues to evolve. Although the domestic scale of Yamaha is

small in relation to the size of the Indian 2W industry, the

company remains a full-range player with products offered across

segments, exposing it to the risk of having spread itself too

thin.

Yet, Yamaha remains amongst the fastest growing

motorcycle companies in India, albeit on a smaller base, with

growth driven in particular by its 150cc segment bikes (i) SZ-X

and SZ-R for the price conscious commuters seeking to have a

higher cc bike; (ii) FZ-16, FZ-S and Fazer as sporty 150cc

models; and (iii) R-15 as the super sports bike. In our view,

Yamaha’s biggest challenge for sustaining its volume growth in

India is going to be its ability to win over its own past which

implies restoring the confidence of vendors, dealers and other

stakeholders that may have suffered earlier due to the company’s

lower focus on the Indian market. The company, however, has

announced fresh capital investments in India towards setting-up a

new plant in Tamil Nadu with an investment of Rs. 1,500 Crore

(proposed to be incurred over the next five years), a pointer to

the now rising commitment of Yamaha towards the Indian market.

TVS: Based on industry volumes in 2011-12, TVS was the second

largest player in the domestic scooters segment with a market

share of 19.4%. However, the company’s market share has been

sliding sharply since February 2012, being below 15% in each of

the last three months.

TVS has the widest portfolio of products in the scooters segment

including the 60cc Scooty Teenz, the 88cc Scooty Streak and

Scooty Pep+ models and the 110cc Wego model. However, the trend

in demand for sub-100cc scooters has been softening over the last

several years, reflected in the reduction in proportion of sub-

100cc scooters in the overall scooters market from 28% in 2006-07

to 15% in 2011-12. To sustain its market share in this growing

segment, the company plans to launch two new products in 2012/

2013 – (a) a new 125cc scooter to compete with the likes of

Suzuki Access125 and Mahindra Duro125; and (b) a new 100cc hybrid

two-wheeler whose test marketing is proposed to be initiated from

June 2012 onwards before its launch in 2013.

Suzuki: In terms of value proposition, Suzuki’s scooter Access125

scores well over competition given that it is a higher powered,

higher engine capacity scooter that also comes along with a

penetrative price tag. When other scooters offered by competition

were either sub-100cc or 100cc, Suzuki, through the launch of the

Access125 in September 2007, endeavoured to create a new segment

of power scooters. Since the first year of its launch, Suzuki’s

market share has increased from 2.3% in 2007-08 to 11.3% in 2011-

12, registering a volume CAGR of 86% (on a low base). In February

2012, Suzuki launched a new brand Swish125 that is similar to the

Access125 in terms of platform, features and engine

specifications; except that it comes with an improved styling and

lower weight (115 kgs Vs 110 kgs) that should improve fuel

efficiency. Since the target segment for both Access125 as well

as Swish125 remain the same, we believe the brands are more

likely to cannibalize into each others’ volumes rather than

increase the addressable market for Suzuki.

CHAPTER-2

REVIEW OF LITERATURE

2. 1 Conceptual Definition:

Measuring the success of particular product is defined as the

amount of acceptance by the customers. A review of relevant

literature indicates greater simplicity in the process of

critical success factors' identification.

The following parameters have been selected to measure the

success of new products in Indian automobile industry:

Market share Awareness

Repeat purchase and advocacy

Customer Satisfaction

The measure of success for an automobile is very

difficult. Different organizations define it in their own

way. Time horizon has big say in measuring of the new

product success. The time over which you want to evaluate

your product success changes the volume or amount you are

expecting.

For different markets different conditions have to be

taken into account . It‘s important to look at the business

from the customer‘s and market‘s perspective. People are

buying from you. The more you understand your customer‘s

needs and wants the more you can satisfy them. And the more

you understand how they buy — that is, their buying

decision process — the greater the likelihood your sales

and marketing efforts will be successful. The measure of

success for an automobile is very difficult.

2.2 Literature Review:

Dr.N.Chandrasekaran investigated the wants of the customer are

carefully studied by conducting surveys on consumer behavior.

The study also helps to know various marketing variables such as

price and product features. This study will help gain knowledge

about the influence of consumer to prefer a particular brand and

the problems faced by them using such brands.

Rachel Dardis, Horacio Soberon-Ferrer investigated the consumer

decision making is multinational, that is consumer choices are

not base on a single product attributes, instead consumers view

products as bundles of attributes. Product

attributes(automobile ) as well as household characteristics.

According to Lewis &Boom service quality is considered as a

measure of how well the service delivered matches customers

expectations on providing a better service than the customer

expect organizational brand promotional strategies should be

based on developing innovative offers &products, developing

costs.

2.3 Gaps in the existing literature:

Measuring the success rate of automobiles is not an easy task.

Various problems are not properly considered. They are:

Few models are only considered in this project.

Few factors that affect the success are taken into

account.

Most precision analysis are not performed because of

less sample size.

CHAPTER-3

RESEARCH METHODOLOGY

3. Research Methodology: The preparation of the report included extensive study of the organization and market research, which was the primary source ofthe report. I have collected information from retailers by preparing questionnaire.

3.1 Objectives of the study: To study the success of new products launched in Indian

automobile industry. To understand various factors that affect preference of

consumers while purchasing two-wheelers. Critical factors responsible for the success of new product

in Indian automobile.

3.2 Research design:

Descriptive research design:

Researcher is carried out the study with descriptive research. The descriptive research is concerned with describing the characteristics of a particular individual to find factors influencing customer preferences towards purchasing of two-wheeler.

Research Questions

To study the factors influencing factors influencing customer preferences towards purchasing of two-wheeler in Hyderabad.

To find out whether success of new products help in industrysuccess.

Research Design Descriptive researchResearch Method Survey methodResearch Instrument Structured questionnaireSample size 50Sample area HyderabadSampling method Convenience SamplingContact method Personal contactAnalytical tool Percentage analysis

Pilot study

Sixteen questionnaires were distributed for the purpose of pre-testing the questionnaire's contents a complete questionnaire was developed based on the comments collected during the pre-testing period.

Statistical tools

The researcher analyzed the data by using the percentage analysis.

3.2Sampling Design:

Sample denotes only a part of the universe/ population. The sample represents the population and is having the same characterizing as the population.

Sampling method:

This type of sampling technique gives no assurance that every element has some specific change of being included. It is clear that for the non-probability samples, there is no way of calculating the margin of error and the confidence level.

3.3 Scope of the Study:

1. To know the change in demand pattern of the customer

2. It would help us understanding the changes in the requirements & preferences.

3. Study of measuring success act as a ladder to develop newproduct.

3.4 Data collection design:

A marketing researcher has to make a plan for collecting data which may be primary data, secondary data or both.

Primary data:

Primary data has collected through questionnaire administered toretailers, Questionnaires were used to find out ― factors influencing customer preferences towards purchasing of two-

wheeler in Hyderabad city with the help of the questionnaire, filled by 50 customers, the result was analyzed. The sample data was collected through interview from dealers around various showrooms. The following type of questions, were asked in the questionnaire

1. Rank questions.

2. Multiple choice questions.

Secondary data:

The secondary data are collected through various sources like

1. Secondary data are collected through internet related to

company, competitors etc.

2. Review of articles being published on the topic in various

magazines and newspapers

Questionnaire:

The best way to collect data is to personally administer the questionnaires. The advantage of this method is, the data can be collected from the respondent within short period of time. Any doubts that the respondent might have on any questions could be clarified on the spot.

3.4 Analysis design:

The study has various satisfied tools for the analysis of data. They are percentage analysis and cross tabulation.

Percentage analysis:

Percentage analysis is used for the purpose of study which is most suitable for questionnaire based on the objective. Percentage analysis is often used in data presentation for them simply numbers, reducing all of them 0 to 100 ranges. The data are reduced in the standard form with base equal to 100 which fact facilitates relative comparison. The formula used here is

Number of responses

Percentage analysis= ------------------------------------------ * 100

Total no. of respondents

Mean:

Mean in which each item being averaged is multiplied by a number (weight) based on the item’s relative importance. The result is summed and the total is divided by the sum of the weights. Weighted averages are used extensively in descriptive statisticalanalysis such as index numbers.

w1x1+w2x2+-----+wnxn

Weighted average mean = -----------------------------------

N

CHAPTER-4

ANALYSIS AND INTERPRETATION

4. Analysis and Interpretation:

Analysis:

Analysis means a critical examination of the assembled and grouped data for studying the characteristics of the object understudy and it refers to methodical classification of the data givein the tables.

Interpretation:

The term interpretation means explaining the meaning and significance of the arranged data. It is the study of relationship between the various factors. It is being consideredas a basic component of research process because of the followingreasons.

It is through interpretation that the researcher can well understand the abstract principle that works beneath his/her findings, through this he/she can link up the same abstract with those of other studies, having the same abstract principles and thereby can predict about the concrete world of experts, fresh inquiries can test their predictions later on, this way the continuing in research can be maintained.

Interpretation leads to the establishment of explanatory conceptsthat can serve as a guide for future research studies, it opens new avenues of intellectual adventure and stimulates the quest for some knowledge.

Researcher can better appreciate only through interpretation whathis/her findings are, why they are and not make other to understand the real significance of his/her research findings.

1. Do you own a two-wheeler?

Yes80%

No20%

Percentage

Yes No

80 20

Interpretation:

This graph shows that, among the sample I collected, 80% of the

sample were own the Two-wheeler and 20% don’t.

4.2 Most preferable type of two-wheeler?

Bike Scooty scooter010203040506070

Column1

Interpretation is the above graph shows that the 60% of the

sample prefer bikes, 30% prefer scooty, 10% scooters.

4.3 Which type of two-wheeler you are having?

Hero26%

Honda24%TVS

21%

Yamaha16%

others13%

brands

Interpretation:

The above graph shows that the 26% of the sample possess Hero,

24% possess Honda, 21% possess TVS , 16% possessYamaha and 13%

others.

4.4 which brand do you prefer?

Hero25%Honda22%

TVS11%

Yamaha14%

Royal Enfield22%

Mahindra8%

Brands

Interpretation is the above graph shows that the 24% of the

sample prefers Hero, 21% prefers Honda, 22% prefers Royal

enfield, 11% prefers TVS , 14% prefers Yamaha and 8% prefers

Mahindra.

4.5 What are the external factors that influence you about purchasing bike?

22 3510 12 21

Brand awarenesspercentage

Interpretation:

Television is best media for brand awareness 35% of people were

came to know about motorcycles , 22% news papers, 12%relatives,

10% Exhibition, 21% Brand image..

4.6. What factor do you consider most important in choosing your

two-wheeler?

0510152025303540

Features

Ratin

gs

Design/

Look/Style

Pri

ce

Power &

Pickup

Low

Maintenance

Milea

ge35 10 26 15 14

Interpretation:

The above graph shows that, 35% of the sample ranked 1st

Design/Look/Style, 10% to Price, 26% Power/Pick-up, 15% to low

maintenance and 14% with Mileage.

4.7. Specify the color you prefer most?

0510152025303540

green red black blue othersColours

Preferen

ces

The above graph shows that,6% of the sample preferred two-wheeler

with green color, 33 with red, 35% with black, 20% with blue, and

6% with other colors like, silver & so on.,

4.8. What is your preferable budget range for two-wheeler?

40-50,00015%

50-60,00032%

60-70,00019%

70-80,00014%

Above 80,00012%

No range9%

Budgets

Interpretation is The graph shows that, 15% of the sample

preferred the budget range between 40-50000, 31% with 50-60000,

19% with 60-70000,14% with 70-80,000, 12% with above 80000, and

9% with No budget range

4.9. What is the source you prefer to purchase the two-wheeler?

Full cash EMI Bank loan020406080

Purchase

Purchase

Interpretation is 60% prefer Bank loan, 25% prefer full cash, 15%prefer EMI.

4.10. Rate the following according to your preference of purchase

Hero splendor ismart

Yamaha FZ-S

Honda aviator

Tvs Jupiter

Mahindra centuro

18

35

25

15

7

Purchasepercentage

.

Interpretation:

The above graph shows that the 18% of the sample prefers Hero,

25% prefers Honda,

15% prefers TVS,

35% prefers Yamaha and 7% prefers Mahindra.

4.11. How is the technology in the following two-wheelers?


Honda Aviator

Yamaha FZ-S

TVS Jupiter

Mahindra Centuro

7050 60 50 40

2030 25

25 40

10 20 15 25 20

TechnologyExcellent GOOD POOR

Interpretation: From the above

70% suggest technology of Hero is Excellent, 20% as good and 10% as poor.

50% suggest technology of Honda is Excellent, 30% as good, 20% aspoor.

50% suggest technology of TVS is Excellent, 25% as good, 25% as poor.

60% suggest technology of Yamaha is Excellent, 25% as good, 15% as poor.

40% suggest technology of Mahindra is Excellent, 40% as good, 20%as poor.

12. How is the Fuel efficiency in the following two-wheelers?


Honda Aviator

Yamaha FZ-S TVS Jupiter Mahindra Centuro

70 68 60 65 55

20 2225 25

30

10 10 15 10 15

Fuel efficiencyExcellent GOOD POOR


70% suggest fuel efficiency of Hero is Excellent, 20% as good and10% as poor.

68% suggest fuel efficiency of Honda is Excellent, 22% as good, 10% as poor.

65% suggest fuel efficiency of TVS is Excellent, 25% as good, 10%as poor.

60% suggest fuel efficiency of Yamaha is Excellent, 25% as good,15% as poor.

55% suggest fuel efficiency of Mahindra is Excellent, 30% as good, 15% as poor.

13. How effective is the Brand image in purchase of following

two-wheelers?


Honda Aviator


70 8065 60 55

20 1025 25 30

10 10 10 15 15

Brand imageHigh Moderate Low


70% suggest Brand image of Hero is High, 20% as Moderate and 10% as Low.

80% suggest Brand image of Honda is High, 30% as Moderate, 20% asLow .

60% suggest Brand image of TVS is High, 25% as Moderate, 15% as Low.

65% suggest Brand image of Yamaha is High, 25% as Moderate, 10% as Low.

55% suggest Brand image of Mahindra is High, 30% as Moderate, 15%as Low.

14. How is the Out-look in the following two-wheelers?


Honda Aviator

Yamaha FZ-S

TVS Jupiter

Mahindra Centuro

7050 60 50 40

2030 25

25 40

10 20 15 25 20

OutlookExcellent GOOD POOR


70% suggest outlook of Hero is Excellent, 20% as good and 10% as poor.

50% suggest outlook of Honda is Excellent, 30% as good, 20% as poor.

50% suggest outlook of TVS is Excellent, 25% as good, 25% as poor.

60% suggest outlook of Yamaha is Excellent, 25% as good, 15% as poor.

40% suggest outlook of Mahindra is Excellent, 40% as good, 20% aspoor.

15. How is the pricing in the following two-wheelers?


Honda Aviator


70 8065 60 55

20 1025 25 30

10 10 10 15 15

PricingHigh Moderate Low


70% suggest pricing of Hero is High, 20% as Moderate and 10% as Low.

80% suggest pricing of Honda is High, 30% as Moderate, 20% as Low.

60% suggest pricing of TVS is High, 25% as Moderate, 15% as Low.

65% suggest pricing of Yamaha is High, 25% as Moderate, 10% as Low.

55% suggest pricing of Mahindra is High, 30% as Moderate, 15% as Low.

CHAPTER-5

FINDINGS, CONCLUSIONS AND

SUGGESTIONS

5.1 FINDINGS:

1. All the respondents were aware about these companies.

2. 60%of customers to know the advertisement through media, 12%

of customers were through friends and 28% of customers are

through dealers.

3. 90 percent of the customers were completely satisfied with the

mileage and performance of the bikes, 10 percent of the customers

are dissatisfied with the mileage.

4. 73% of respondents are satisfied with pick-up and 27% of the

customers are dissatisfied.

5. 56% of the respondents are attracted by the quality of the

service to choose the bike, 20% of the respondents are like less

price and 24% of the respondents were like brand image.

6. 50% of the respondents are satisfied with the design, 40% of

the respondents said that average and 10% of the respondents feel

that design is poor.

7. 54% of the respondents considered the price as higher where as

only 8% considered as economical and 38% of the respondent said

it as reasonable.

8. 60 % of the respondents felt the explanation to be

“excellent”. And 35% of them “very good” and rest of 5% felt to

be “poor”.

5.2 Suggestions:

1. The most important media for consumer durables is television.

So, they should go for television advertisements rather going for

newspaper, the television advertisements influences more on the

people. They should spend some expenditure for T.V.

advertisements.

2. Being the price of the bikes are high they should try to

reduce prices because there are many other competitors which can

be selling at lower cost. If not, the sales may decrease. 3. More

features should be added to the bikes according to the needs of

the customer, because their competitors are coming with new

models. According to the competitors these people should change

the models or change the technology.4. Companies should give some

incentives to the dealers for promoting the products their

brands. They should not neglect dealers. They should select good

dealers, which they can give customer satisfaction.5. Company

should setup service centers at dealer level itself. They should

train some personnel for exclusive maintenance of these two

wheelers. They should provide home service to the customers. The

personnel should be appointed by company to the dealers. The

service should be accurate.

5.3 Conclusion:

A study was useful in understanding the customer relationship

management of various bikes among a various customers launching

new formulations can make Two-wheelers as leading one in

automobile industry. About 70% of customers are aware of these

companies.

Most of the customers agree that Honda is best quality with

reasonable price the attitude 50% of customers towards price of

Honda Bikes is reasonable. But 10% of the customers are asking

for improvement in the quality.

Most of the customers agree that Hero is best quality with


Bikes is reasonable. But 20% of the customers are asking for

improvement in the quality.

Most of the customers agree that TVS is best quality with




Most of the customers agree Yamaha is best quality with




Most of the customers agree Mahindra is best quality with




References:

Philip Kotler and Kevin Keller, Marketing Management,

Pearson Education, 14th edition (2012).

Virupaxi Bagodi, Biswajit Mahanty, (2008) "Two-wheeler

service sector in India: factors of importance for

sustainable growth", Journal of Advances in Management

Research, Vol. 5, Iss: 1, pp.21 – 27.

Jackson, T, A report to the Consumer Behavior Research,

(2005).

Dr. Satya Sundaram.I, (2006) ‘Two-wheelers: Power, Style and

Mileage’, Facts For You, January, Vol. 26, Issue: 4, pp. 17

– 20.

K. Narasimhan, (2003) "Quality from Customer Needs to

Customer Satisfaction", The TQM Magazine, Vol. 15, Iss: 6,

pp.430 – 431.

Subhadip Roy, (2006) ‘Consumer Choice of Motorbike

Attributes: An Application of Conjoint Analysis’, The ICFAI

Journal of Marketing Management, February, Vol. 5, Issue: 1,

pp. 48 – 56.

Jay.D.Lindqist and Joseph Sirgy.M, (2003) ‘Shopper, Buyer

and Consumer Behaviour’, Bistantra Publishers (P). Ltd.,

Second Edition, pp. 34 – 37.

Prof. Suresh.A.M and Mr. Raja.K.G, (2005) ‘Measuring

Customer Satisfaction for Two-wheelers – An Empirical

Study’, Indian Journal of Marketing, February, Vol. 26,

Issue: 2, pp. 3 – 8.

Leon G Schiffman, Leslin Lazer Kenuk, Consumer Behavior-

Prentice Hall of India Pvt Ltd (6th Edition), pp. 111-150

Nov 2001 .

King, S. (1991), " Brand-building in the 1990s", Journal of

Consumer Marketing, Vol. 8 No.4, pp.43-52

Websites:

www.heromotocorp.com

www.bikeportal.com

www.zigwheels.com

CHAPTER-6

APENDICIES

SAMPLE QUESTIONNAIRE

I am student of MBA conducting a survey as a part of curriculum and would be grateful if you could spare some of your precious time and please fill this questionnaire

Personal profile

Name :

Age :

Gender :

1. Do you own a two-wheeler?

(a) Yes (b) No

2. Which type of two-wheeler you prefer most?

(a) Motor Bike (b) Scooty (c) Scooter

3. What brand right now you are having?

(a) Hero (b) Honda (c) TVS

(d) Yamaha (e) others

4. According to you which company you like most?

(Mention the name if the option is not there)

(a) Hero (b) Honda (c) TVS

(d) Yamaha (e) Royal Enfield (f) Mahindra

5. What are the external factors that influence you about purchasing bike?

(a) Print media (b) Electronic media (c) Exhibition (d) Relatives

(e) Brand image

6. What is your preference in choosing a two-wheeler?

(a) Mileage (b) Power and pickup (c) Price

(d) Stylish look (e) Low maintenance

7. What is your preferable budget range for two-wheeler?

(a) 40-50,000 (b) 50-60,000 (c) 60-70,000

(d) 70-80,000 (e) Above 80,000(f) No range

8. What is the source you prefer to purchase the two-wheeler?

(a) Full cash (b) EMI (c) Bank loan

9. Which color of vehicle do you prefer?

10. Rate the following according to your preference of purchase.

(a) Hero splendor ismart (b) Honda Aviator (c) TVS Jupiter

(d) Yamaha FZ-S (e) Mahindra Centuro

11. How is the technology in the following two-wheelers?

(Tick the category of your preference)

Excellent Good Poor

Hero splendor ismart ___ ___ ___

Yamaha FZ-S ___ ___ ___

Mahindra Centuro ___ ___ ___

Honda Aviator ___ ___ ___

TVS Jupiter ___ ___ ___

12. How is the Fuel efficiency in the following two-wheelers?


Excellent Good Poor


Yamaha FZ-S ___ ___ ___




13. How effective is the Brand image in purchase of following two-wheelers?

High Moderate Low


Yamaha FZ-S ___ ___ ___




14. How is the Out-look in the following two-wheelers?


Excellent Good Poor


Yamaha FZ-S ___ ___ ___




15. How is the pricing in the following two-wheelers?

(Tick the category of your choice)

High Moderate Low


Yamaha FZ-S ___ ___ ___



TVS Jupiter ___ ___ ___ 1

16. Please give suggestions to improve new brands.

_________________________________________________

MEASURING THE SUCCESS OF LATEST TWO-WHEELERS IN INDIAN AUTOMOBILE INDUSTRY

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