Chapter-1 Introductionoverview of THE INDIAN MOBIKE INDUSTRYThe
Indian two-wheeler industry is dominated by three players, Bajaj,
Hero Honda and TVS Suzuki, who account for 80 percent of the total
two-wheeler market. The other players including Kinetic
Engineering, LML and others account for the remaining 20 percent of
the market. The industry can be divided into three broad segments:
Scooters, motorcycles and mopeds. In the scooters segment Bajaj is
the market leader, Hero Honda is the market leader in the
motorcycles segment and in the segment of mopeds, TVS controls the
major chunk of the market. Most Indian players in the two-wheeler
industry had been into some kind of strategic alliance, technical
collaboration or joint venture with foreign players, mainly
Japanese firms. Hero-Honda, is a joint venture between the
Munjal-promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki
was an alliance with TVS and Suzuki Motors (till September 2001);
Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki;
and Yamaha-Escorts, a joint venture between Escorts and Yamaha
Motor Corp. (till June 2001). Indian automobile market, be it the
two-wheeler segment, the three-wheeler segment or the car segment,
is yet to come to a stage where all the models are developed
indigenously. For years now, Indian companies have been dependent
on their foreign joint venture partners or collaborators to provide
them with the technical know-how. This trend too is in for a
change. Leading the pack in this arena is Bajaj, which has been
Successful at designing models in-house. Bajaj's Safire and Spirit
have been able to bag the scooter of the year award for 2003 and
2004 respectively. In fact, its Spirit was adjudged the "Indigenous
product design of the year" for the year 2000. The recently
launched Pulsar from the Bajaj stable is yet another home-grown
product, albeit in tandem with Japanese design house, Tokyo
R&D. Bajaj has been laying increased emphasis on its R&D so
as to be able to launch new products to tap the markets at all
possible price points. Other companies too are adapting the
strategy of designing and developing products indigenously. TVS's
Victor is yet another development in this direction and this
indigenously built model has been a success in the markets.
Overview of Auto Mobile Industry in IndiaA two-wheeler is used as a
personal/family vehicle or a goods carrier in the developing
countries, whereas it is confined to sports/racing (heavy
motorcycles) or short distance shopping (mopeds) in developed
countries. The world two-wheeler market is dominated by Japan.
Japanese manufacturers account for around 65% of the total
two-wheeler production in the world. However, production within
Japan has been declining due to lower domestic demand and shift in
manufacturing base outside the country. Japan is also the world's
largest exporter of two-wheelers in the world controlling around
75% of the world trade. Its major markets are China, USA and
Europe. In terms of player positions, Honda Motors Corporation,
Yamaha Motors and Suzuki Motors Corporation share the top three
slots in the world two-wheeler market. The table below shows the
production and sales figures of motorcycles and scooters in Japan
during the past decade More than 50% of the production in Japan is
exported out of the country. This scenario contrasts directly with
the Indian scenario. In India, only about 2% of the production in
FY99 was exported The Asian continent is the largest user of
two-wheelers in the world. This is due to poor road infrastructure
and low per capita income, restrictive policy on car industry.The
technology for two-wheelers is not as well developed as for car
industry. This is due to oligopoly between top five players in the
segment, compared to thirty manufacturers in the car industry.
BAJAJ AUTOMOBILESThe Bajaj Group is amongst the top 10 business
houses in India. Its footprint stretches over a wide range of
industries, spanning automobiles (two-wheelers and three-wheelers),
home appliances, lighting, iron and steel, insurance, travel and
finance.The groups flagship company, Bajaj Auto, is ranked as the
worlds fourth largest two- and three- wheeler manufacturer and the
Bajaj brand is well-known in over a dozen countries in Europe,
Latin America, the US and Asia.Founded in 1926, at the height of
India's movement for independence from the British, the group has
an illustrious history. The integrity, dedication, resourcefulness
and determination to succeed which are characteristic of the group
today, are often traced back to its birth during those days of
relentless devotion to a common cause. Jamnalal Bajaj, founder of
the group, was a close confidant and disciple of Mahatma Gandhi. In
fact, Gandhiji had adopted him as his son. This close relationship
and his deep involvement in the independence movement did not leave
Jamnalal Bajaj with much time to spend on his newly launched
business venture.His son, Kamalnayan Bajaj, then 27, took over the
reins of business in 1942. He too was close to Gandhiji and it was
only after Independence in 1947, that he was able to give his full
attention to the business. Kamalnayan Bajaj not only consolidated
the group, but also diversified into various manufacturing
activities.The present Chairman and Managing Director of the group,
Rahul Bajaj, took charge of the business in 1965. Under his
leadership, the turnover of the Bajaj Auto the flagship company has
gone up from Rs.72 million to Rs.46.16 billion (USD 936 million),
its product portfolio has expanded from one to and the brand has
found a global market. He is one of Indias most distinguished
business leaders and internationally respected for his business
acumen and entrepreneurial spirit.
BAJAJBrandisthevisualexpressionofourthoughtsandactions.Itconveystoeveryoneourintentiontoconstantlyinspireconfidence.Ourcustomers
are the primary audience for our brand.Indeed, our Brand Identityis
shaped as much by their belief in Bajaj as it is by our own
vision.Everything we do is always reinforce the distinctiveness and
the power ofour brand. Wedo thisby living our brand essence and by
continuouslyseekingtoenhanceourcustomersexperience.Ourbrandessenceencapsulates
our mission at Bajaj.It is the singular representation of ourterms
of endearment with our customers.It provides the basis on which
wegrowprofitablyinthemarket.Blendingtogetherandtheimplicitexpectations
of our customers.By challenging the given. By exploring theunknown
and thereby stretching ourselves towards future.
COMPANY PROFILE
Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries
of Japan to produce arange of the latest, state-of-art two-wheelers
in India. Since the tie-up in 1986, Bajaj Autohas launched KB100,
KB RTZ, KB125, 4S, 4S Champion, Boxer, Caliber, Caliber115,Wind125
and India's first real cruiser bike, theKawasaki Bajaj Eliminator.
A Fortune
500companywithaturnoverofUSD10billion(Rs.45,840crore),KawasakiHeavyIndustries
has crafted new technologies for over a hundred years. These
technologieshave redefined space systems, aircrafts, jet engines,
ships, locomotive, energy plants,construction machinery, automation
systems, apart from a range of high quality,
highreliabilitytwo-wheelers.Kawasakihasgiventheworlditslegendaryseriesof600-1200ccNinjaand1600Vulcanbikes.StraightfromKawasakidesignboards,theKawasakiBajajEliminatorredefinesthepleasureof"biking"inlooksaswellas
possible.
OUR BRANDS AND VALUES
Brandvalues:Learning,Innovation,Perfection,SpeedandTransparency.Bajajconstantly
inspiresconfidence through excitementengineering.Learning:Learning
is how we ensureproactivity.It is a value that embracesknowledge as
the platform for building well informed,reasoned, and decisive
actions.
INNOVATIONInnovation is how we create the future.It is a value
that provokes us to reach beyond the obvious in pursuit of that
which exceedsthe ordinary.
PERFECTION
Perfection is how we set new standards.It is a value that
exhibits our determination to excel by endeavouring to establish
newbenchmarks all the time.
SPEED
Speed is how we convey clear conviction.It is a value that keeps
us sharply responsive, mirroring our commitment towards ourgoals
and processes.
TRANSPARENCY
Transparency is how we characterise ourselves.It is a value that
makesus worthy of credibility through integrity, of trust
throughsensitivity and of loyalty through interdependence.
POLITICAL ANALYSISTraditional GOVERNMENT OF INDIA has considered
the automobile industry as a luxury segment. But realizing the
growing importance of two-wheelers with the increasing necessity of
personal transportation for the middle class in eighties, priority
was given to the sector by favorable foreign policy. This brought
about technology revolution to the two-wheelers as Japanese majors
entered in technical and financial participation with Indian
majors.GOI has a moderate intervention in the operations of two and
three-wheeler industry. Excise duty structure, emission control,
safety of rider, etc are all policy decisions. The excise duty on
two-wheelers, which previously ranged between 10 to 30%, according
to the engine capacity was rationalized in 1991-92 budget to only
two-categories viz 15% upto 75cc and 25% above 75cc. This mainly
affected manufacturers of 100cc category in the early nineties.
Since then the excise duty structure for two-wheelers has been left
unchanged till 1999. In the 1999-2000 budget, as a result of
rationalization of duty structure the excise duty up to 75cc
vehicles was increased to 16% while for those above 75cc decreased
to 24%. As a result, scooter prices were reduced by Rs200-400 per
vehicle. The components used for manufacturing two-wheelers are
charged an excise duty of 15%. The industry has been asking GOI to
reduce this excise duty to 10%. Two and three-wheelers sector was
the first to be de-controlled from the clutches of government
regulations. This has resulted in the entry of world majors and
subsequent in technology and equity participation with Indian
players. This has lead to technology revolution for the
two-wheelers in 1980's.The regulation of safety of the rider is
controlled by state government notifications, these vary in
different states. For example helmets are compulsory for
two-wheeler riders in New Delhi and some other states. The same is
optional in Maharashtra and Karnataka. The price of the
two-wheelers varies across the country due to variation in
registration charges, state taxes and octrai levied by states. The
GOI controls availability and price of petrol, the fuel for
two-wheelers. But with the dismantling of Administered Price
Mechanism (APM), The availability of unleaded petrol across the
country will be a crucial factor, as catalytic converters work
satisfactorily only under unleaded petrol. SOCIAL ANALYSISThe main
social factor that associated with automobile industry is the
environmental concerns and HEALTH HAZARDS, (including the welfare
of workes etc, )in form of various diseases due to auto pollution.
. Some of the issues of pollution related to automobile are
discussed below.ECONOMICAL ANALYSISAutomobile industry is the
indicator of the technological health of the country. It also
reflects economical status of a country. India planners need to
consider that the auto industry one segment that is capable of very
rapid growth unlike traditional areas like agriculture, minerals,
chemicals, energy, textiles, gems etc. While all sectors need to be
encouraged, the auto sector is not only capable of very rapid
growth but also of good exports and huge employment.In the past,
auto industry suffered from the stigma of being considered elitist
and was subjected to crippling restrictions and taxation that still
hold it back. There is 40% MODVAT on the components and 35%
customers duty on imported kits. After production there 245 to 32%
excise duty plus 12% local sales tax some other local taxe. So
every time you buy a car, bike or truck, you give one to government
in taxes. The impact on employment is also little understand.Every
direct or indirect salaries job also generates huge territory
employment to the providers of food, clothing, shelter, health,
education entertainment, recreation, construction etc. accounts of
10% of Indias auto industry, the cumulative impact is huge. Indian
two-wheeler manufacturers have everything going for them in this
battle. They have a large, mature market, which offers them
tremendous volumes. All of them have built up huge capacities which
offer scale economies. They have technology support from some of
the leading names in the world such as Honda, Yamaha, Suzuki and
Kawasaki.If India cut the total taxes on auto by half, there would
be a huge immediate boost in sales and production. If this
sacrifice by the governments can generate may times greater value
in jobs and economic activity, this time of crisis is the ideal
time to use autos as a vehicle to kick start the entire
economy.SWOT ANALYSIS OF BAJAJ AUTOMOBILESSTRENGTHS Bajaj
Automobiles draws it's strength from 29 years of experience in
handling the ever changing automobile scenario strong customer
relationships ability to provide the cutting edge technology at
best-value-for-money an excellent service & support
infrastructure.WEAKNESSES The company needs to evolve a
comprehensive plan & strategy to make inroads into a part of
middle class & upper middle class. Lack of R & D centers
also makes it difficult to launch new products over
here.OPPORTUNITIES The present rate of growth of the Automobile
Industry & a large potential available in these areas provides
excellent opportunity for the company to widen its market. With the
fast growing economy the pricing strategy needs to be tackled with
care as it can decide upon long term decisions of the company.
Globalization is yet another opportunity, if followed effectively
& promptly.
THREATS It is natural that threats from the existing as well as
new entrants will affect the present turnover & Market share.
The nearest competitors having the identical product range are the
greatest threat to the company.
PRODUCT PROFILE
Two-wheelers (Domestic)
The domestic two-wheeler market is dominated by motorcycles.
Itsgrowth in 2006-07 needs to be viewed in two clearly distinct
phases. Forthefirst three quarters of the year, the two-wheelers
witnessed veryhealthy growth, and it was a part of the continuing
growth story of theprevious few years. In thelast three months of
theyear, however, overallmarket growth slackened
considerablylargely due to steadily risinginterest rates and
constraints on credit growth due to actions taken bythe Reserve
Bank of India, banks andfinancial institutions tocontrol non-food
credit. However, this credit squeeze is, at worst, a short term
phenomenon. The fact is that over the last four years, India has
achieved a compoundannual GDP growth rate well in excess of 8 per
cent - something that is expected to continue over the future. Over
the last decade, household incomes have increased significantly in
urban as well rural India and, with it, consumer spends -
especially on non-food items and durables.Two-wheelerpenetration
still remains very low byany standard. Therefore, the longerterm
story for two-wheeler is an extremely good one, where the countryis
bound to see healthy double-digit market expansion in the years
tocome. In 2006- 07, the industrys overall sales of two wheelers
grew by 12 per cent from 7.57 million to 8.47 million units.
Motorcycles sales grewby 14 per cent from 6.2 million to 7.1
million. The share of motorcycles inthe two-wheelers segment for
the industry as a whole increased from 82per cent in 2005-06 to 84
per cent in 2006-07.
Motorcycles
Bajaj Autos sale of motorcycles by volume grew by 24.4 per cent
in 2006-07 which was significantly greater than that of the
industry.Consequently, the Company has continued to increase its
market sharein motorcycles, which stands at 33.5 per cent in
2006-07, compared to30.8 per cent in 2005-06. As in the previous
year, this Management Discussion and Analysis analyses the
performance of Bajaj within different broad segments of the
motorcycle industry.
The High Performance Segment:
This includes motorcycles in theengine class of 150 cc and
above. Bajaj Auto competes here with thePulsar range and Avenger
DTS-i2.
The 125 cc Segment:
Bajaj Auto competes in this category withDiscover DTS-i 125 and
therecently launched Discover DTS-i 135.3.
The 100 cc Segment:
Here, Bajaj Auto competes with the Discover110, Platina and the
CT-100.
DISTRIBUTION NETWORK
Bajaj Auto is restructuring its marketing and distribution
network toaddress the different requirements of the urban and rural
markets.The company has recently launched its high-end bike
dealership Probiking and is now in the process of categorising its
existing 479dealership network into urban and rural
dealerships.Rajiv Bajaj, MD, Bajaj Auto said, Besides Probiking,
which is our channel for high-end bikes, we will split the rest of
the two-wheelerdealer network into rural and urban.This is being
done to cater to the different needs of the rural and urbancustomer
in terms of product, infrastructure, working capital, financingand
servicing.As competition hots up in the Indianmotorcycle industry.
Bajaj Auto Ltdand TVS Motor Company are chalking out aggressive
marketing plans torace ahead in this sector. In a bid to regain its
leadership position, BajajAuto is planning to expand its
distribution network to reach out to awider target audience.
Likewise, TVS Motor Company is all set to extendthe number of its
dealership and service centres in the near future.Clearly, Bajaj
Auto and TVS Motor are shifting gears.On Bajaj Autos distribution
strategy, says Bajaj Auto vice president(business & product
development) RL Ravichandran: We plan toexpand our dealership
network and service centres to improve ourpenetration into smaller
towns across the country.In fact, we plan toincrease the number of
dealerships and service centresby 20 to 25 per cent. With this
move, we will be able to cover towns with a population of two to
three lakh. Incidentally, the company is all set to unveil its
entry-level motorcycle called BYK this month. Priced at Rs 30,000,
BYK is positioned as a stylish bike targeted at the entry level
audience. Ogilvy & Mather Indiawill be designing the
communication strategy for the new bike from theBajaj stable. As
part of its offline promotion strategy, the companyrecently hosted
the Bajaj Boxer Indian Telly Awards 2002 on StarPlus topromote its
Bajaj Boxer range.
POSITIONING STRATEGIES
Ever since losing its leadership position, BAL was trying out
newstrategies including use of new technology and new
marketingcommunication campaigns. For instance, in the early 2000s
it startedfocusing more on the motorcycle market with new product
launches,complemented bynew communication campaigns to inject
vibrancyintothe Bajaj brand.The ad spots launched in late 2001
showed 'slice of life' situations of"new age" India. Analysts felt
that by 2004, BAL's image had undergoneconsiderable change in the
mind of the target audience. BAL reinforcedthis through another
campaigncalled 'Inspiring Confidence' that year.In addition to
bringing change in its products and creating brands thatinspired
confidence, BAL wanted its products to be 'distinctly ahead' inthe
wake of growing competition in the intensely competitive
automobilemarket.BAL's new corporate strategy announced in mid
2007, 'Disinctly Ahead',was aimed at embedding these changes inthe
collective consciousness ofthe company. It was aimed at offering
consumers products that wereunique and at the forefront compared to
its competitors.The 'Distinctly Ahead' strategy focused on three
corevalues -innovation,speed, and perfection. Commenting on its new
strategy, Rajiv Bajaj,Managing Director, BAL, said, "We believe it
is not good enough to bebetter, it is important to be distinct.That
is a filter that we apply to everything we do. be it product
development, manufacturing processes or communication development.
Our flagship brand Pulsar is the strongest evidence of this
philosophy. It is only a differentiated offering that customers see
value in and aspire for."
The company launched a 'Distinctly Ahead' communication
campaign,created by ad agency Lowe, to signify its new aggressive
and fast pacedimage.The ad showed a 220 Pulsar DTS-Fi morphing into
several 220 Pulsarsas they raced with each other. The ad featured
the pay-off line, "AlagAndaaz, Alag hai Khoj, Rakhe Aage, Hamari
Soch"and a background theme music that was a much peppier version
of the original 'HamaraBajaj' theme music. Through this, the
company sought to communicatethat BAL lays down its own standards
and principles and believes incompeting with itself. Bajaj Auto's
new brand strategy in motorcycles paid off well with thecompany on
course to recording its best year ever in terms ofprofitability and
market share.Its market share, which was barely 17 per cent a year
ago, has increased since to 35 per cent today. We have more than
doubled our market share in a year and would be at our highest
level by the end of this quarter Mr Rajiv Bajaj,Managing Director,
told Business Line. The confidence stems from the fact that there
are still three months to gofor the recently launched Pulsar 135 to
consolidate itself in the marketand start clocking volumes. Bajaj
Auto has targeted a monthly output of100,000 Pulsars by end-March
2010 and believes thenew 135cc will playa key role in achieving
this goal. At present, the Pulsar 150, 180 and 220versions together
account for around 60,000 units eachmonth.
CORE COMPETENCIES
Bajaj Auto is one of the oldest and the second largest two
wheelermanufacutrer in India. In addition to coping with fierce
competitionfrom other players in the two wheeler segment, it also
has to protect itsmarket share from the impending onslaught of low
price small cars suchas Tata Nano. Holding on to its postion in
such a challenging marketenvironment requires innovative strategies
and deep understanding ofconsumers needs.Bajaj Auto, sitting on
surplus funds of over Rs 7,000 crore, wasinundated with offers to
diversify from telecommunications and powergeneration to software
but stuck to core business of automobiles. MrBajaj said that any
company, which wants to survive, must have qualityand service
orientation. The automotive sector was in its death throeswith some
of the major American automotive manufacturers on theverge of
bankruptcy, he said.There are several reasons why Bajaj should
concentrate on its coresegment, i.e. greater than 125cc segment.
With the introduction of DTS-iand DTS-Fi technology, Bajaj Auto
Limited has led the way inpioneeringtechnology along with style.The
Profitability Pyramid in Exhibit 4 shows that the margin is very
lowin the sub-125cc segment but volumes are high. BAL wants to
shift usersfrom 100, 115cc segment to 125cc and higher. Thus Bajaj
not only wants to play on the margins but also wants to increase
the market share of125cc bikes. With its recent launch of XCD
125cc, it has brought incompetition for its own 100cc model,
Platina by delivering a bike that isbetter in allrespects
(including fuel efficiency).
BAJAJ PRODUCTS
1. Bajaj Discover
PERFORMANCE150CC DTS-I ENGINE THAT PACKS A PUNCHA beast fuelled
with power unimagined, the Bajaj Discover 150 is a Stallion that
provides unparalleled performance. The breakthrough 150cc DTS-I
engine ensures efficient combustion, and in conjunction with a
5-speed gear box, provides exceptionally smooth power, yet
delivering class-leading fuel efficiency.
COMFORTCOMFORT IN EVERY RIDELong drives become a lot more fun
with the Bajaj Discover 150. While the gas-charged Nitrox
Suspension delivers an optimum level of comfort, the bikes electric
start provides you with a hassle free starting for quick stop-start
traffic conditions.
SAFETYREDEFINING STEADINESSTake control of the road with a
100/90 x 17" extra wide rear tyre that provides excellent grip,
even in wet and slippery conditions. With a 240mm front disc brake
that provides safe and superior braking, the Bajaj Discover 150 is
totally yours to command.
STYLINGA MAN'S BIKEThe Bajaj Discover 150 has got the looks that
can make heads turn. The alloy wheels add to its new generation,
chic look and stand out from any average commuter motorcycle. The
attractive and powerful graphics on the front are a true
representation of the power the bike holds within.
2.Bajaj Pulsar
PERFORMANCE
This 4 stroke, 180 cc, Digital Twin Spark ignition (DTS-i)
engine has been designed to generate that extra surge of power. At
17Ps, the Pulsar 180 gives the rider a feeling of what its like to
be aheadalways! The revolutionary electronics on the Pulsar 180
like TRICS III and intelligent CDI improve ignition timing thus
ensuring smoother power delivery and better throttle response. All
this while not compromising on the efficiency and mileage.
COMFORT
The Pulsar 180 sports telescopic front forks, nitrox rear shock
absorbers with 5 step adjustable ride settings, thus providing the
bike with greater riding comfort and handling stability on all
terrains. With split seats, the riding stance on the Pulsar 180 is
comfortable for both rider and pillion.
SAFETY
To ensure safety, the Pulsar 180 comes with a large, ventilated
240 mm front disc brake, a broader 120/80x17" rear tyre, front and
rear tubeless tyres that ensure you will never be stranded no
matter how empty the highway or crowded the city.
STYLING
Behold the beast with the looks to die for. Its stylish and
powerful wolf eyed headlamp with twin pilot lamps, adds a unique
character to the Pulsar 180 and lets it mark its own territory on
the road. The naked street fighter look is further enhanced by the
aerodynamic fairing on the large, muscular 15 litre fuel tank. This
mean machine comes with clip-on handlebar, complete with pass
switch, electric start and engine kill switch.3. Bajaj Avenger
PERFORMANCE
The Avenger has a powerful 220 CC DTSi engine capable of
cranking high torque to ensure a good, smooth highway ride. The
DTS-i technology employs twin spark plug instead of a single spark
plug, which give the Avenger that additional power and torque while
also keeping it efficient for the long cruise.
COMFORTThe Avenger has the typical low-slung cruiser seating
making it easy to handle and sit on. The dual density foam seats,
back rest for pillion and low saddle height make the Avenger truly
enjoyable and comfortable for a long ride on the highway.
SAFETY
The Avenger has a broad rear tyre for better grip, disc brake on
the front for improved braking and a stable build that will not
waver when out on the open roads.
STYLING
The personality of the Avenger suits the people who ride it It
classic cruiser looks, Low Slung styling, classic fuel tank with
fuel gauge build it give the Avenger a distinct identity ad road
presence. Swing your leg over the saddle and Feel Like God.
4. Bajaj Plantina 100
PERFORMANCECOMPLETE VALUE FOR MONEYA class apart, the Bajaj
Platina boasts of a legendary 4 stroke 100cc engine that has
established a benchmark in mileage. Its ride control switch helps
the rider maintain an economical speed to gain maximum mileage.
When you ride the Platina, you know you have made a wise
choice.
COMFORTCONVENIENCE AND COMFORTThe Bajaj Platina is all about
comfort with an extra long seat that makes it a perfect family
bike. In addition, its SNS suspension ensures better ability to
soak up bumps and potholes. When you ride the Platina, you can ride
on and on.
SAFETYENSURING SAFETYSafety comes first on the Bajaj Platina.
Its large 1275mm wheelbase and drum brakes ensure the stability of
the bike and safety of the rider.
STYLINGSTYLISH LOOKSDazzling chrome graphics, silver alloy
wheels, sleek rear panels with fluid grab rail design, graphite
tint engine and transmission with black silencer and chrome heat
shield add to the beauty of the motorcycle. Not to forget, its
stylish alloy wheels make you stand out from the crowd.
5. Kawasaki Ninja 650
Signature Mono SuspensionTrademark single-shock rear suspension
joins the frame and swingarm, creating a line that flows smoothly
from steering head to rear axle.
Under-engine mufflerMuffler located under the engine lowers the
Ninja 650's centre of gravity and contributes to the bike's highly
focused appearance. Its steeper angle complements the bike's
aggressive, lightweight image. Quick-revving 649 cm3
liquid-cooled,4-stroke Parallel Twin EngineThe 2012 engine offers
more low-mid range torque for more fun and greater usability in
everyday riding situations, while maintaining the smooth,
high-revving character of its predecessor.
Rider-friendly Ergonomics The riding position was specially
designed to inspire rider confidence. An ideal relationship between
the handlebars, seat and footpegs results in a comfortable and
natural position suitable for a wide range of riders.
Damped HandlebarsRubber damped handlebars ensure that uneven
road conditions do not result in tired arms. Stay on the bike as
long as you want.Slightly wider handlebar (10 mm each side) offers
larger riders a little more room.
DRL with Hazard LightsDay running lights ensure visibility.
Hazard lights enable added visibility when required. The sculpted
shape of the multi-reflector headlamps bulb hoods is an example of
the attention given to detail on this model
Triple Petal Disc BrakeTriple petal disc brakes look great and
deliver plenty of stopping power. New front brake pads for non-ABS
models offer increased braking force.
Easier-to-read instrument panel designNew instrumentation
features an analogue-style tachometer and multi-purpose LCD.
Convenient new features keep riders fully informed of operating
conditions.
HONDAStrengths
1. Diversified product portfolio.Honda unlike many other
automotive companies does not focus only on selling vehicles. It is
the largest producer of the engines and motorcycles as well.
Therefore, the company is not as susceptible as its competitors are
to market cycles or technology disruptions.2. Huge investments in
R&D.Hondas investments in R&D reach as much as 5% of
revenue. The company relies on these investments to achieve
competitive advantage through various technologies, such as
improved vehicle painting process, new hydrogen and hybrid engines
or new welding technologies. In 2012, the company owned 42,000
patents and had pending applications for 29,000 more patents.3.
Strong brand image.Honda has a reputation for producing the best
quality engines around the world. The companys brand was the 21st
most valuable brand in the world valued at $17 billion and was only
behind Toyota, Mercedes-Benz and BMW, according to Interbrand.4.
Motorcycle market share in Asia.In 2012, Honda sold 80.5% of its
motorcycles in Asia, the market that has greatest growth potential.
Having the largest motorcycle market share, Honda is well
positioned to compete with other companies for the sales and
profits.Weaknesses
1. Product recalls.Over 2011 and 2012, Honda recalled more than
1,000,000 vehicles to fix various faulty parts and manufacturing
defects. Car recalls severely damages firms brand reputation and
future sales.2. Weak position in Europe automotive market.Honda
holds a very weak position in the Europes automotive market and has
maintained only 1.1% market share in 2012. Although, Europes market
share is declining at the moment and many companies experience
losses, the market is huge and firms can benefit from the economies
of scale.3. Decreasing sales.In 2012, Hondas revenue hit the lowest
point in 4 years to 7.948 trillion. Honda sales were down by 11.2%
in North America, which represents more than 40% of total Honda
revenues. Revenue from Asia and Europe also declined by 21.3%,
15.5% respectively, signaling poor firms performance
globally.Opportunities
1. Increasing fuel prices.Hondas strong emphasis on engineering
fuel-efficient vehicles (Honda Insight and Honda Civic) with
flexible fuel, hybrid and hydrogen engines will pay off due to
increasing fuel prices.2. Positive outlook for global motorcycle
industry.Motorcycle industry grew by 4.2% from 2011 to 2012 and is
expected to grow by at least 6% to 2016. Honda is the worlds
leading producer and seller of the motorcycles having more than 29%
of the market share. Growing demand for the motorcycles is a great
opportunity for the company to expand its global market share and
grow sales.3. Growing global demand for environment friendly
vehicles.The declining levels of fossil fuel sources and the rising
CO2 emissions became a major concern for many people and many
governments. Therefore, ecologically friendly cars, powered by
hybrid, hydrogen or flexible fuel engines became very popular. The
market for such cars was $33 billion in 2010. Hondas focus on
hybrid and hydrogen fueled engines is a great opportunity to
capture the market share for this new demand.4. Growth through
acquisitions.Honda could greatly benefit from strategic
partnerships or acquisitions of smaller competitors. The company
would add new brands to its portfolio, achieve greater economies of
scale and would benefit from synergies between different
firms.Threats
1. Intense competition.Honda faces more intense competition than
ever. New small entrants are disrupting the market with their
capabilities in producing electric vehicles or alternative fuel
engines. Big companies are restructuring themselves to become more
efficient. As a result, firms like Honda are suffering from
competition from both big and small players.2. Decreasing fuel
prices.Some analysts forecast that future fuel prices will drop due
to extraction of shale gas. This would negatively influence Honda
because the company is focusing on hydrogen fuel, hybrid and
flexible fuel engine cars, which are not so attractive to consumers
when fuel prices are low.3. Rising raw material prices.Metals are
the main raw materials used in vehicle and motorcycle manufacturing
and the rising price of the raw metals raises overall production
costs for Honda.4. Natural disasters.Honda has manufacturing
facilities in Japan, Thailand, China and Malaysia. These countries,
including others, are often subject to natural disasters that
disrupt manufacturing in the facilities and decrease Hondas
production volumes.5. Strong yen.Honda earns most of its profits
outside Japan and appreciating yen poses a great threat to Hondas
profits.Cutting-edge technology and the spirit of Honda
Our fundamental design philosophy seeks to maximise space and
comfort for people, while minimising the space required for
mechanical components. With this aim in mind, Honda's R&D
activities include product-specific development and fundamental
research.Let's talk about few of the advanced technologies that we
have:
Combi Break System
Generally, it is not easy to control a2-wheeler while braking
during emergencies and bad road conditions. This system not only
allows easy & simultaneous operation of the front & rear
brake but also provides optimal braking performance. Once the left
side brake lever is pressed, the system distributes the appropriate
braking power between the front and rear wheels, which assures
complete safety for the rider.
HondaMaticTransmission
The compact, efficient & oil pressure controlled Hondamatic
Transmission is the world's first fully automatic transmission
system, which delivers a dynamic combination of torque &
excellent accelerator response for a constant and superior driving
experience. The transmission is being used in Honda's all terrain
vehicles. Honda is working hard to introduce this Hondamatic in
two-wheelers.
Fuel Injection System
Honda's fuel injection technology is designed to realise ideal
combustion, which results in delivering maximum power output,
greatly improved fuel efficiency and yet be
environment-friendly.
Idle-Stop-System
Honda has created an advanced Idle Stop System (see image below)
that reduces fuel consumption while totally blocking out toxic
exhaust gas and unwanted noise. It enables the engine to stop
automatically for3seconds after the vehicle stops moving. And when
the throttle is opened, the vehicle engine restarts and takes off
smoothly.
Products of Honda1. CB Unicorn
CB Unicornis powered with Honda4-stroke,150cc engine and
incorporates many cutting-edge technologies developed by Hondas
global R&D team. It sets new benchmark in the uppper majority
motorcycle segment in India with its swift acceleration, superior
mileage, international styling, riding comfort and convenience.
CB Unicorn is engineered and styled for the taste of the younger
generation. With the4-stroke,150cc engine delivering a
whooping13.3bhp, CB Unicorn is the fastest motorcycle in India
racing from0 to 60kms* per hour in a mere5seconds. It has a
distinctive sporty and macho design with a racy front face,
masculine fuel tank with knee grip and a sleek rear cowl.
CB Unicorn offers perfect balance of pickup and mileage,
delivering60kmpl through its famed4-stroke Honda engine, cutting
edge technologies like Multi-Mapping CDI, Tumble Flow Combustion
Chamber, Roller Rocker arm, and a Classy Aerodynamic Body.
This engineering masterpiece with international design appeal,
guarantees to quench your thirst for motorcycle frenzy with all its
stunning features.
2. CB Stunner
Start down Style Boulevard. Get to the New Graphics (down
Headturn Avenue).
Take a turn for the Newly Designed Under Cowl (watch out for
Immediate Attention it has a looming presence).
Keep a lookout for the Sharp Rear (its the most happening place
in the city nowadays, all the hot chicks are there).
Go down Performance Avenue. For a mind-blowing drive, take the
Hondas125cc Engine with11bhp5Speed Transmission (renowned the world
over).
Keep going straight down with the Wider Tubeless Tyres (A
landmark is the The Black Alloy Wheels impossible to miss)
Stop at the Disc Brakes.
Take a roundabout from The Sporty Half Chain Case (leaves your
head spinning really) and take the Handle Bar Weights (its a stable
ride despite the challenging roads).
Get to the newly constructed Tachometer (its a superb vantage
point, you can see close to everything from here).
3. CB Shine
Powered by Hondas revolutionary optimax & Ergotec
technologies, the CB Shine is a companion that understands &
fulfills the riders need to do more in life by delivering superior
performance that is nothing short of a dream come true.
CB Shine is powered by a newly developed125cc Optimax engine,
which maintains Optimum input for maximum output and incorporates
cutting edge technologies to deliver best balance of mileage and
pickup. Due to its cutting edge Honda technologies, the125cc
Optimax engine delivers class leading10.3BHP which enables Shine to
deliver the best balance of pickup and mileage.
CB Shines Ergo Tec Design with lightweight advanced diamond
frame and double suspension offers superior absorption of shocks
& vibrations thus providing excellent ride comfort &
stability. Riding position based on human engineering ensures, less
fatigue and firm & wide seating space with comfortable seating
posture for pillion rider.
CB Shine also comes equipped with host of innovative features
like puncture resistant Tuff-up tube and Primary Kick/Self start
for easier city riding etc.
4. CB Twister
Honda CB Twister ranges from INR 45K-51K (ex-showroom, Delhi
(approx., may vary)). Definitely,its a complete value for bike.
Honda is asking a genuine price for their sporty bike. CB Twister
has catchy looks and performs best in its class. Moreover you will
be pleased with its high fuel efficiency and superb ride quality.
If you compare it with its rivals then its more stylish and feature
rich bike which also gives you exclusivity which is quite rare in
its segment.
5. CB Trigger
Honda Motors along with Scooter India Ltd has launched the
newHonda CB Triggerin the Indian bikes market. It is a unique kind
of a bike that will be seen on the Indian roads, but it has some
resemblance to the Honda Dazzler. The styling of the Honda CB
Trigger has some cues from the CB1000R, which will surely thrill
Indian roads andmotorcyclemarket. Honda CB Trigger will be a 150CC
motorbike, it will be seen going head to head with the 150CCHonda
Unicornthat has made a good mark in the 150CC segment.
CHAPTER -2 RESEARCH METHODOLGY
Information is the life blood of managerial decision-making the
purpose of the methodology section is to describe the procedure by
which the relevant information is gathered. In research
methodology, we study the various steps that are generally adopted
by researcher in studying his research problem along with the logic
behind them.HERE, RESEARCH METHODOLOGY USED IS EXLORATORY RESERCH
1. Data Collection/Source of Information:a) Primary: By
questionnaire that contains open ended, close ended and dichotous
questions. b) Secondary: Magazines and Web sites relating to
different Bike Companys.2. Sample Design:a) Sampling Method:
Non-Probability and Judgment Sampling b) Survey Population: College
students and people of West Delhic) Sample Size: 100 persons were
included in the research including both who are using bikes and who
are not using bikes. 3. Statistical Tools: The following are the
statistical tools used in the study:a) Percentageb) Rankingc)
Scaling
CHAPTER-3DATA ANALYSIS AND INTERPRETATION1.Which of the
following companys bike do you have?(a) Bajaj (b) Honda (c)
Other
2. From where did you purchase your bike?(a) Showroom (b)
Secondhand Dealer (c) Other
3. How do you get to know about the company of the bike?(a)
Friends/Family (b) Advertisements (c) Hoarding/Banners (d)
Other
4. How many bikes have you used of the same company till now?
(a) One (b) More than one
5. What promotional scheme attracted you the most towards the
company ? (a) Advertisement (b) Promotional Campaign (c)
Hoarding/Banners (d) Sms (e) Other
6. Why did you choose this company over the other? (a) Price (b)
Services (c) Network (d) Other
7. Does the company fulfil your expectation as was committed
during promotion? (a) Yes (b) No (c) Cant Say
8. Were you convinced to buy the bike by the promotion totally?
(a) Yes (b) No (c) Cant Say
9. How would you rate the competitiveness of this company with
other company in terms of promotion?(a) Excellent (b) Good (c)
Average (d) Poor (e) Very poor
10. How would you rate the competitiveness of this company with
other company in term of service?(a) Excellent (b) Good (c) Average
(d) Poor (e) Very poor
11. Are you satisfied with the after sale service of the company
as committed during the promotion?
(a) Yes (b) No (c) Cant Say
12. Does the brand fulfil your status needs and give value for
money? (a) Yes (b) No (c) Cant Say
13. Would you like to purchase this brand again? (a) Yes (b) No
(c) Cant Say
14. Would you like to recommend this bike company to your
friends and family? (a) Yes (b) No (c) Cant Say
CHAPETR -4CONCLUSIONS
RESULTS OF THE STUDY1) Regarding the preference for the Bike
company, people are more inclined towards the Bajaj bikes and Honda
bikes are also a strong competitor. Other brands of bikes are less
preferred.
2)Regarding the purchase of the bikes people prefer buying from
showrooms so that they can avail the benefits of the best service
and more information regarding the bike and less from second hand
dealers and few people buys from other sources. 3)43% of the
customers came to know about the bike company from their family and
friends, 35% of the customers came to know about the bike company
from different types of promotional strategies, 15% came to know
from banners/hoardings in the city and 7% came to know from
different sources. Most of the people were convinced from their
family and friends.
4)Generally people have used only one bike from the same company
and very few have used more than one bike of the same company.
5) The most attracted promotional scheme of the people is
advertisement from different sources , some are attracted towards
the promotional campaigns and few number of people preferred
banners, sms and other promotional schemes. The customers are
mainly get influenced from the advertisements.
6) The most of people prefer price and mileage of the bike that
the company offers while purchasing and some compare pick up and
other facilities over the bike comapny.
7) The brand fulfilled the expectation as was committed during
promotion as said by the 70% of the customers and 10% have some
problems regarding the commitment and 20% of the customers were
confused regarding their view point.
8) 50% of the people were convinced to buy the bike by the
promotion totally and on the other hand 30% of the people still
need more information regarding the bike before its purchase and
20% of the people were affected by the promotion but not
totally.
9) Most of the people thought that the competitiveness of this
company with other company in terms of promotion was good and
thought it was excellent but few people thought that it was not
satisfactory. In conclusion company is having great promotional
strategies but it can improve to earn more customers and
profit.
10) Most of the people thought that the competitiveness of this
company with other company in term of service was good and only few
thought it was excellent and a lot people thought it was not
satisfactory , so company should concentrate more on the after sale
service so that the customers should get more satisfied.
11) 65% of the people were satisfied with the after sale service
of the company as committed during the promotion, 20% of the people
have not used the after sale services so they cannot comment and
15% of the people were not satisfied with the after sale services
of the company.
12) The brand fulfilled the status needs and give value for
money to almost 80% of the customers and 15% did not comment
anything and 5% were not satisfied.
13) About 45% of the customer would like to purchase the brand
they are using again and 35% are not sure to purchase this companys
bike again and 20% of the people would like to try some other
company of bikes.
14) More than 50% of the customers would like to recommend this
brand to their friends and family, few are not interested about
talking about this and some people were not interested at all in
sharing their viewpoint regarding their bike to their friends and
family.
LIMITATIONS OF THE STUDY
Although I have tried my best in collecting the relevant
information there are always present some limitations under which
researcher has to work. Here following are some limitations under
which I had work as shown below:
1. Sample Design: The sample size analyzed was limited which may
not be fully representative of the universe. A large sample size
could not be taken due to time and cost constraints.
2. Time Constraint: I had a limited time for conducting this
analysis report. So some shortfalls may be present..
3. Biasness on the part of Respondents: Although all the
attempts were made to make it an objective study, biasness on the
part of respondents might have resulted in subjectiveness.
4. Reluctance of Respondents: Some customers are not willing to
give any information due to many reasons like lack of time or they
do not want to disclose their opinion or thinking.
SUGGESTIONS1. Honda should improve on its promotional strategies
so that people can get more convince to buy their companys bike
over the other.2. Bajaj and Honda should promote their brand and
should bring new services for the customers frequently so that they
can enjoy the benefits that the company provides and can get more
attracted towards the purchase of the bike .3. Most of the people
agreed that the brand fulfils their status needs but everyone
should agree that and for this more attracted services in the bike
should be provided to the customer.4. The promotional strategies of
the brand should be very strong so that the brand can fulfill all
the expectations of the customers.