A RESEARCH REPORT PROJECT REPORT ON
“A COMPARATIVE STUDY of Consumer satisfaction towards BAJAJ V/S HERO MOTOCORP” Submitted in partial fulfillment of the requirement For the award of degree Of
Master of Business Administration (Affiliated to M.M. Technical University, Noida
SESSION 2011-2013
Submitted To: Dr.Rekha Sharma (HOD,MBA Department)
Submitted by: NAME: AMRITA SINGH ROLL NO: 1118270005
STUDENT DECLARATION
I undersign AMRITA SINGH student of MBA IV here by declared that the research report entitled ‘A COMPARATIVE STUDY of Consumer satisfaction towards BAJAJ V/S HERO MOTOCORP is completed and submitted under the guidance of MRS.GARIMA CHAWLA,(HR Faculty) of KALKA INSTITUTE FOR RESEARCH AND ADVANCE STUDIES my original work. The imperial finding in this report is based on the data collected by me. I have not submitted this project report to MTU, Noida or any other University for the purpose of compliance of any requirement of any examination or degree.
NAME: AMRITA SINGH ROLL NO: 1118270005 MBA – IV sem
2
PREFACE Practical and Theory are the two aspects of Management education. The practical training in the domain of management courses has received vital importance. It exposes to the potential manager towards the actual work situation and gives a student rich insight into what practically is going on inside the industries, infect it is the implementation of theory into practices which is the life force of management. Two months practical training is an obligatory requirement for the M.B.A. It was of great advantage to receive practical training in BAJAJ AUTO LIMITED. at MEERUT (U.P.). The management of the company offered an excellent learning situation. There have been considerable changes in the technology, operation and structure of the industry due to globalization, mergers, environmental issues and available fiber sources, and new challenges being posed by the changing customer satisfaction levels and multiple market requirements are forcing industry to adapt to new solutions. I was assigned special Project: Comparative Study of Bajaj V/s Hero Honda
3
ACKNOWLEDGEMENT
The research on “A COMPARATIVE STUDY of Consumer satisfaction towards BAJAJ V/S HERO MOTOCORP” has been given to me as part of the curriculum in Bachelor Degree in Business Administration. I have tried my best to present this information as clearly as possible using basic terms that I hope will be comprehended by the widest spectrum of researchers, analysts and students for further studies. I will be failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance and knowledge. I have received from them towards fruitful and timely completion of this work. Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirect support during the entire course of this project. I also thankful to my friend who helped me a lot in the completion of this project.
4
INDEX
Sr No.
Particulars
Page no
EXECUTIVE SUMMARY OBJECTIVES COMPANY PROFILE OF BAJAJ COMPANY PROFILE OF HERO HONDA RESEARCH METHODOLOGY LIMITATION OF RESEARCH STUDY DATA ANALYSIS AND INTERPRETATION CONCLUSION RECOMMENDATION BIBLIOGRAPHY ANNEXURE
5
EXECUTIVE SUMMARY
In today’s corporate and competitive world, I find that insurance sector has the maximum growth and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to enter in this sector and BAJAJ ALLIANZ LIFE INSURANCE has given me the opportunity to work and get experience in highly competitive and enhancing sector. •
The success story of good market share of different market organizations depends upon the availability of the product and services near to the customer, which can be distributed through a distribution channel. In Insurance sector, distribution channel includes only agents or agency holders of the company. If a company like BAJAJ ALIANZ LIFE INSURANCE, RELIANCE LIFE INSURANCE, TATA AIG, MAX etc have adequate agents in the market they can capture big market as compared to the other companies.
•
Agents are the only way for a company of Insurance sector through which policies and benefits of the company can be explained to the customer .
6
OBJECTIVES OF THE STUDY
1. To know the market share of Bajaj & Hero Honda.
2. To know the perception of customers regarding bikes.
3. To determine the customers satisfaction regarding bikes.
4. To determine the factors influencing the choice of customers regarding bikes.
7
EXECUTIVE SUMMARY Doing this project was a great experience. The Bajaj and Hero in India has set up an independent organizations which are major two wheeler manufacturers with a capital of 350 U.S. $ each by virtue of sellout decision of the passed . Present Auto Mobile boon in India was attributed to the legacy of Bajaj which was there in India. In today’s market the Bajaj and Hero hold a 62% market share that appears to bear concentrated rush to beg a big share in the Auto Mobile market. Being a capital & biggest business center of India I choose the MEERUT to conduct my study and to get lot of exposure & various opportunities to meet different kind of customers. This project has been under taken to study the availability of complete range of Auto Mobile products to retail outlets. To conduct the detail study of my project, I worked for a distributor in MEERUT. During the training period I covered the whole market of MEERUT Area and gathered the information from retail outlets regarding the availability of whole range of Bajaj. After getting the information, I list out those retail outlets and getting the response regarding the various promotional schemes of Bajaj, Hero and other.
8
BAJAJ AUTO LIMITED
Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers they also manufacture three wheelers. The company had started way back in 1945. Initial it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. By the year 1970 the years have come to represent the aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited
includes
Learning,
Innovation,
Perfection,
Speed
and
Transparency. Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales are backed by a network of after sales service and maintenance work shops all over the country.
9
Bajaj Auto has products which cater to every segment of the Indian two wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj Discover 125 offers the consumer a great performance without making a big hole in the pocket.
10
PROFILE Founder
Jamnalal Bajaj
Year of Establishment
1926
Industry
Automotive - Two & Three Wheelers
Business Group
The Bajaj Group BSE
–
Code:
500490;
NSE
-
Code:
Listings & its codes BAJAJAUTO Presence
Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.
Joint Venture Registered
Kawasaki Heavy Industries of Japan &
Office
Head Akurdi Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398
Works
•
Akurdi, Pune 411035
•
Bajaj Nagar, Waluj Aurangabad 431136
•
Chakan Industrial Area, Chakan, Pune 411501
E-mail
[email protected]
Website
www.bajajauto.com
KEY PERSONS:
11
Board of Directors Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.S. Mehta Kantikumar R. Podar Shekhar Bajaj D.J. Balaji Rao J.N. Godrej S.H. Khan Mrs. Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj
Chairman Vice Chairman & Whole-Time Director Managing Director Executive Director Whole-Time Director Director Director Director Director Director Director Director Director Director Director Director
Committees of the Board Audit Committee S.H. Khan Chairman D.J. Balaji Rao J.N. Godrej Naresh Chandra Nanoo Pamnani
12
Shareholders’ & Investors’ Grievance committee D.J. Balaji Rao Chairman J.N. Godrej Naresh Chandra S. H. Khan
Remuneration committee D.J. Balaji Rao Chairman S.H. Khan Naresh Chandra Registered under the Indian Companies Act, VII of 1913 REGISTERED OFFICE Akurdi, Pune 411 035 WORKS Akurdi, Pune 411 035 Bajaj Nagar, Waluj Aurangabad 431 136 Chakan Industrial Area, Chakan, Pune 411 501
Bajaj Auto Ltd. Bajaj Auto Limited
Type Public Founded 1945 Headquarters Pune, India Key people Rahul Bajaj (Chairman)
13
Rs.
1,01,063
billion
(2006)
or
Revenue US$1.87 billion Rs. 17,016 billion ??? www.bajajauto.com
Net income Employees Website
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes motorscooters, motorcycles and the auto rickshaw. Contents •
1 Company's history o
1.1 Timeline of new releases
•
2 Scooters
•
3 Motorcycles
•
4 Upcoming Models
•
5 New Image
•
6 Forbes Global 2000 Ranking - 2005
•
7 External links
•
8 References
Company's history Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the
14
Government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.
15
Timeline of new releases •
1971 - three-wheeler goods carrier
•
1972 - Bajaj Chetak
•
1976 - Bajaj Super
•
1977 - Rear engine Autorickshaw
•
1981 - Bajaj M-50
•
1986 - Bajaj M-80, Kawasaki Bajaj KB100
•
1990 - Bajaj Sunny
•
1994 - Bajaj Classic
•
1995 - Bajaj Super Excel
•
1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw
•
1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)
•
2000 - Bajaj Saffire
•
2001 - Eliminator, Pulsar
•
2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
•
2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i
•
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
•
2006 - Bajaj Platina
•
2007 - Bajaj Pulsar-200
16
Some of the models that Bajaj makes (or has made) are: Scooters o
Bajaj Sunny
o
Bajaj Chetak
o
Bajaj Cub
o
Bajaj Super
o
Bajaj Wave
o
Bajaj Legend
Motorcycles o
Kawasaki Eliminator
o
Bajaj Pulsar
o
Bajaj Kawasaki Wind 125
o
Bajaj Boxer
o
Bajaj CT 100
o
Bajaj Platina
o
Bajaj Caliber
o
Bajaj Discover
o
Bajaj Avenger
17
Upcoming Models •
Bajaj Pulsar 220 DTS-Fi
•
Bajaj Krystal
•
Bajaj Blade
•
Bajaj Sonic
New Image The company, over the last decade has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer, product range ranging from Scooterettes to Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after successful introduction of a few models in the motorcycle segment. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
18
MANAGEMENT PROFILE Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj Abraham Joseph Pradeep Shrivastava S Sridhar R C Maheshwari C P Tripathi N H Hingorani Kevin P D'sa V S Raghavan S Ravikumar K Srinivas Ranjit Gupta J. Sridhar
Chairman Vice Chairman Managing Director Executive Director Vice President (Research & Development) President (Engineering) CEO (2WH) CEO (Commercial Vehicles) Vice President (Corporate) Vice President (Commercial) Vice President (Finance) Vice President (Corporate Finance) Vice President (Business Development) Vice President (Human Resources) Vice President (Insurance) Company Secretary
Rahul Bajaj Chairman Rahul Bajaj is an Honours Graduate in Economics and Law and a Business Graduate from the Harvard Business School. He was appointed Chief Executive Officer of Bajaj Auto in 1968 and
19
took over later as Head of the Bajaj Group of companies. Madhur Bajaj Vice Chairman After graduating in Commerce, Mr Bajaj did his BBA from Lausanne, Switzerland. Joined as DGM in March 1983, took over as General Manager - Aurangabad Division in June 1986, as its Chief Executive in October 1988, became President of Bajaj Auto in September 1994, Executive Director in May 2000 and is Vice Chairman since July 2001. Rajiv Bajaj Managing Director Rajiv Bajaj, who took charge as Managing Director on 1st April 2005, is a Mechanical Engineer from Pune University. He later did his Masters in Manufacturing Systems Engineering from the University of Warwick. He Joined as Officer on Special Duty in 1990, took over as General Manager (Products) in February 1993, Vice President (Products) in June 1995, President in May 2000, President & Whole Time Director in March 2002 and as Joint Managing Director in March 2003.
Sanjiv Bajaj Executive Director
20
Mr. Sanjiv Bajaj, who took charge as the Executive Director in April 2004, is a Mechanical Engineer from Pune University. He obtained a Masters Degree in Manufacturing Systems from the University of Warwick and an BBA degree from Harvard Business School. Mr. Sanjiv Bajaj joined as an Officer on Special Duty in 1994, took over as the General Manager (CF) in 1997 and Vice President (Finance) in April 2001. Abraham Joseph Vice President (Research & Development) Mr. Joseph started his tenure in Bajaj in July 1989 as a Graduate Trainee Engineer, took over as General Manager (R&D) in April 2005 and is currently the Vice President (R&D) since April 2007 . He is a Mechanical Engineer from the National Institute of Technology, Bhopal. Pradeep Shrivastava President (Engineering) Mr.Pradeep Shrivastava joined Bajaj in April 1986. He took over as Vice President (Engineering) in April 2005 and is currently the President (Engineering) since July 2007. After receiving a degree in Mechanical Engineering from IIT - Delhi, Mr. Shrivastava obtained a graduate diploma in Production and Finance from IIM – Bangalore in 1986.
21
S Sridhar CEO (2 Wh) Mr. Sridhar joined Bajaj in March 2001 as GM (Sales) for two wheelers, took over as Vice President (Marketing & Sales – 2W) in April 2005 and is currently the CEO (2WH) since July 2007. He holds an Engineering Graduate degree in Agriculture. R C Maheshwari CEO (Commercial Vehicles) Mr. Maheshwari joined Bajaj in July 2007 as CEO (CV). He is a gold medallist Mechanical engineer from BITS, Pilani. C P Tripathi Vice President (Corporate) Mr. C.P. Tripathi started in Bajaj in January 1996 as the Vice President (Waluj Plant ), took over as Vice President (Operations) in April 2001 and is Vice President (Corporate) since July 2007. A Science Graduate from Agra University, Mr. Tripathi also holds a degree in Mechanical Engineering from the Indian Institute of Technology, Kharagpur.
N H Hingorani Vice President (Commercial) Mr. N.H. Hingorani joined Bajaj in 1997 as the General Manager (Materials), took over as the Vice President (Purchase) in 1998 and is Vice President (Commercial) since February 2006. Mr. 22
Hingorani holds a degree in Mechanical Engineering from the Malaviya Regional Engineering College, Jaipur. Kevin P D'Sa Vice President (Finance) Mr. Kevin D’sa began his career with Bajaj in September 1978 and is presently the Vice President (Finance). After acquiring a Bachelor’s degree in Commerce, he completed his CA in 1978 and ICWA in 1981. V Sankara Raghavan Vice President (Corporate Finance) Mr.Raghavan joined Bajaj in March 1984 and is currently the Vice President (Corporate Finance). A Science graduate, Mr. Raghavan completed his CA in 1976. S Ravikumar Vice President (Business Development) Mr. Ravikumar joined Bajaj in June 1984 as an Accounts Officer and is now the Vice President (Business Development). He is an active member of the Institute of Chartered Accountants of India.
K Srinivas Vice President (Human Resources) Mr. Srinivas joined Bajaj in January 2000 as the DGM (HRD) and is now the Vice President (HR). He holds a Bachelors Degree in Electrical Engineering from VJTI, MuBBAi. 23
Ranjit Gupta Vice President (Insurance) Mr. Ranjit Gupta started in Bajaj as the General Manager (Coordination) in 1988, and moved on to become the Vice President (Materials ) in 1995, then Vice President (HRD) in 2000 and is now Vice President (Insurance). Mr. Gupta did his Masters Degree in Mechanical & Electrical Engineering from the Indian Railway Institute of Mechanical & Electrical Engineers. He was honored with a fellowship from the Institute of Electrical Engineering (London) and was also inducted as a member of the Institute of Mechanical Engineers (London).
J. Sridhar Company Secretary Mr. J Sridhar is the Company Secretary since July 2001. A graduate in Commerce and Law, Mr. Sridhar also did his FCA, FCS and MMS. Prior to joining Bajaj, he was the Controller of Finance and Company Secretary, Maharashtra Scooters Ltd., a Bajaj Auto joint venture.
24
25
26
27
28
BOARD OF DIRECTORS
Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.S. Mehta Kantikumar R. Podar Shekhar Bajaj D.J. Balaji Rao J.N. Godrej S.H. Khan Mrs. Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj
Chairman Vice Chairman & Whole-Time Director Managing Director Executive Director Whole-Time Director Director Director Director Director Director Director Director Director Director Director Director
Committees of the Board Audit Committee S.H. Khan Chairman D.J. Balaji Rao J.N. Godrej Naresh Chandra Nanoo Pamnani
29
Shareholders’ & Investors’ Grievance committee D.J. Balaji Rao Chairman J.N. Godrej Naresh Chandra S. H. Khan Remuneration committee D.J. Balaji Rao Chairman S.H. Khan Naresh Chandra
30
MILESTONES 2007 April Bajaj Auto Commissions New Plant at Panthnagar, Uttarakhand 200 February cc Pulsar DTS-i launched January Bajaj Kristal DTS-i launched 2006 April Bajaj Platina launched 2005 December Bajaj Discover launched June Bajaj Avenger DTS-i launched February Bajaj Wave DTS-i launched 2004 October Bajaj Discover DTS-I launched August New Bajaj Chetak 4 stroke with Wonder Gear launched May Bajaj CT100 Launched January Bajaj unveils new brand identity, dons new symbol, logo and brandline 2003 October Pulsar DTS-I is launched. October 107,115 Motorcycles sold in a month. July Bajaj Wind 125,The World Bike, is launched in India. Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle February segment. 2001 November Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’. January The Eliminator is launched. 2000 The Bajaj Saffire is introduced. 1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months. Production commences at Chakan plant. 1998 June 7th Kawasaki Bajaj Caliber rolls out of Waluj. July 25th Legend, India’s first four-stroke scooter rolls out of Akurdi. October Spirit launched. 1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced. 1995 November Bajaj Auto is 50.
31
29 Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development. The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicle. One million vehicles were produced and sold in this financial year. 1994 The Bajaj Classic is introduced. 1991 The Kawasaki Bajaj 4S Champion is introduced. 1990 The Bajaj Sunny is introduced. 1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year. 1985 November 5
The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh. Production commences at Waluj, Aurangabad in a record time of 16 months.
1984 January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad. 1981 The Bajaj M-50 is introduced. 1977 The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year. 1976 The Bajaj Super is introduced. 1975 BAL & Maharashtra Scooters Ltd. joint venture. 1972 The Bajaj Chetak is introduced. 1971 The three-wheeler goods carrier is introduced. 1970 Bajaj Auto rolls out its 100,000th vehicle. 1960
32
Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. 1959 Bajaj Auto obtains licence from the Government of India to manufacture twoand three-wheelers. 1948 Sales in India commence by importing two- and three-wheelers. 1945 November
Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private
29
Limited.
GROUP COMPANIES Bajaj Auto is the flagship of the Bajaj group of companies. The group comprises of 27 companies and was founded in the year 1926. The companies in the group are: Bajaj Auto Ltd.
Mukand International Ltd.
Mukand Ltd.
Mukand Engineers Ltd.
Bajaj Electricals Ltd.
Mukand Global Finance Ltd.
Bajaj Hindustan Ltd.
Bachhraj Factories Pvt. Ltd.
Maharashtra Scooters Ltd.
Bajaj Consumer Care Ltd.
Bajaj Auto Finance Ltd.
Bajaj Auto Holdings Ltd.
Hercules Hoists Ltd.
Jamnalal Sons Pvt. Ltd.
Bajaj Sevashram Pvt Ltd.
Bachhraj & Company Pvt. Ltd.
Hind Lamps Ltd.
Jeevan Ltd.
Bajaj Ventures Ltd.
The Hindustan Housing Co Ltd.
Bajaj International Pvt Ltd.
Baroda Industries Pvt Ltd.
Hind Musafir Agency Pvt Ltd.
Stainless India Ltd.
33
HR RECRUITMENT POLICY Bajaj Auto is an equal opportunity employer. Selection is based strictly on individual merit. A large number of our recruits are fresh engineers and BBAs. Natural attrition is usually taken care of by promotions and horizontal movements within the organisation to provide career opportunities for our employees. Occasionally, specific skill-sets may warrant lateral recruitment. Entry level Recruitment Engineers: We recruit Engineering Graduates from reputed institutes from all over India. Bajaj Auto enjoys an excellent reputation with all National Institutes of Technology (NITs) and is among the preferred employers for on-campus recruitment. The selection process comprises a written test in technical, analytical and logical reasoning, group discussion and personal interview. Management Graduates: We recruit management graduates from reputed management institutes all over India. The selection procedure comprises a written test in analytical and logical reasoning, group discussion and personal interview. All entry-level selections are made through on-campus recruitment only. After recruitment, new entrants undergo a thorough induction-training programme before their placement in the company. Departments are allocated on the basis of the individual recruit’s aptitude and our requirements. Usually, after completing two years of service they are provided opportunities for job-rotation.
34
Work Culture Our work culture supports and enhances our brand. The Bajaj brand signifies excitement. Bajaj strives to inspire confidence through excitement engineering. The culture is built on core values of learning, innovation, perfection, speed and transparency. Facilitative leadership style helps in developing leaders at all levels and establishes accountability. Our Brand Values We live our brand by its values of Innovation, Perfection, and Speed. Bajaj will be distinctly ahead through excitement engineering. Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious in pursuit of that which exceeds the ordinary. Perfection is how we set new standards. It is a value that exhibits our determination to excel by endeavouring to establish new benchmarks all the time. Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring our commitment towards our goals and processes. Competency Building Bajaj Auto has a very flat organisation structure with three management levels. Each level represents a specific role and hence needs relevant competencies. Competency building at Bajaj Auto is a combination of development for current and future roles. We cater to these needs by using interventions like development centres, need-based training and job-rotation plans. We use different methods of imparting training like lectures, group-discussions, role-plays, seminars, outbound training, assignments and on-the-job tasks. Compensation Philosophy
35
We strive to be amongst the top quartile in our compensation structure. Competence and performance are the key drivers of our compensation policy. A significant part of the compensation is in the form of variable pay linked to the individual’s and the organisation’s performance.
36
AWARDS Product Award
Year
By
Bajaj Pulsar DTS-Fi - Bike of the Year
2007
CNBC-TV18 Autocar
2007
Auto Awards NDTV Profit Bike
Bajaj Platina 100cc – Bike of the Year
Mr. Rajiv Bajaj - Man of the year 2005 2005 Mr. Rajiv Bajaj - Automotive Man of the year 2005 2005
India Autocar Professional Bike India & NDTV
Bajaj CT 100 - Motorcycle Total Customer
2005
India TNS Automotive
Satisfaction Study 2005 Bajaj Discover DTS-i - Bike of the Year 2005
2005
OVERDRIVE Awards
2005
2005 OVERDRIVE Awards
2004
2005 ICICI Bank
Bajaj Discover DTS-i - Indigenous Design of the Year 2005 BAJAJ AUTO - Bike Maker of the Year 2004
OVERDRIVE Awards DTS-i Technology – Auto Tech of the Year 2004
2004
2004 ICICI Bank OVERDRIVE Awards
Bajaj Pulsar DTS-i Bike of the Year 2004
2004
2004 ICICI Bank OVERDRIVE Awards
Wind 125 Two Wheeler of the Year 2004 Wind 125 Bike of the Year 2004
2004
2004 CNBC AUTOCAR
2004
Awards 2004 Business Standard
Bajaj Pulsar 180 DTS-i BBC World Wheels Viewers 2003
Motoring BBC World Wheels
Choice Two Wheeler of Year 2003 Bajaj Pulsar 180 DTS-i BBC World Wheels Award
Award 2003 BBC World Wheels
2003
for Best Two Wheeler between Rs 55,000 to Rs 70,000 Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best Two Wheeler between Rs 45,000 to Rs
Award 2003 2003
BBC World Wheels Award 2003
55,000
37
Bajaj Boxer AT KTEC BBC World Wheels Award
2003
BBC World Wheels
for Best Two Wheeler under Rs 30,000 Bajaj Pulsar - Motorcycle Total Customer
2003
Award 2003 NFO Automotive
Satisfaction Study Bajaj Pulsar - Bike of the year
2003
ICICI Bank OVERDRIVE Awards
Bajaj Pulsar - Most exciting bike of the year Bajaj Eliminator - Bike of the year Bajaj Eliminator - Most exciting bike of the year
2002 2002 2001
2003 OVERDRIVE Awards OVERDRIVE Awards OVERDRIVE Awards
Award
Year
By
Chakan Plant Super Platinum Award for
2006-07
Frost and Sullivan
Manufacturing Excellence Chakan & Waluj Plants Audit Passed for TPM
2006-07
TPM
Excellence Award Bikemaker of the Year Bike Manufacturer of the Year 2007 All India Trophy for Highest Exporter Focus LAC Award for Outstanding
2006-07 2006-07 1998-99 1998-99
Overdrive Awards NDTV Profit Bike India EEPC India Trade Promotion
1998-99 1998-99
Organisation EEPC India Trade Promotion
Award for Export Excellence Export Excellence All India Trophy for Highest Exporter Top Exporter Shield - Western Region Export Excellence Regional Top Exporter - Large Scale
1997-98 1997-98 1997-98 1996-97 1996-97 1995-96
Organisation EEPC MCCIIA EEPC EEPC MCCIA EEPC
Manufacturer Highest Export Performance Outstanding Export Performance
1995-96 1995-96
EEPC Government of India,
1995-96 1995-96 1995-96
Ministry of Commerce MCCIA EEPC Government of India,
Performance Export Excellence Certificate of Merit
Export Excellence Award Top Exporter Shield - Western Region Certificate of Merit
Ministry of Commerce 38
Award for Export Excellence Regional Top Exporter - Large Scale
1994-95 1994-95
EEPC EEPC
Manufacturer All India Special Shield - Consumer Durables
1994-95
EEPC
Exporter National Export award for Outstanding
1994-95
Government of India,
Performance Western Region Top Export Award All India Special Shield - Consumer Durables Regional Special Shield - Capital Goods
1994-95 1994-95 1993-94
Ministry of Commerce EEPC EEPC EEPC
Category Award for Export Excellence Capital Goods Export Regional Special Shield - Capital Goods
1993-94 1992-93 1990-91
EEPC EEPC EEPC
Category Certificate of Export Excellence Certificate of Export Recognition Certificate of Export Recognition Award for Export Excellence Certificate of Merit
1986-87 1980-81 1979-80 1979-80 1978-79
EEPC EEPC EEPC EEPC Government of India,
1978-79 1977-78 1977-78 1976 1976 1975-76
Ministry of Commerce EEPC EEPC EEPC FICCI FICCI EEPC
Certificate of Export Recognition Award for Export Excellence Certificate of Export Recognition Export Promotion Golden Jubilee Export Year Award Export Excellence
39
MISSION
The corporate mission of the company is:
To become a very significant player in two wheeler industry.
To increase the net worth of shareholders equity.
To give the transparency and fairness for the products. GROUP COMPANIES
Bajaj Auto Ltd.
Mukand Ltd
Bajaj Auto Finance Limited
Herculas Hoists Ltd.
Bajaj Sevashram Ltd.
Hind Laps Ltd
OBJECTIVE: The main objective of Bajaj is to help the dealer to sell additional volume from outside the dealership. With wide range of models available in the market, it has become difficult for the consumer to select from the showroom, therefore salesman representatives guide him/her to choose the best suited for their need.
VISION: To build a quality sales force which is highly competitive and committed to build an ever-lasting customer relationship?
40
OPERATIONS: Bajaj has started operation from July 2002. We at Bajaj are committed to give the consumer the right product at right price through meeting him/her directly and explaining the product features, advantages and benefits at his place of work or home. We are providing excellent finance schemes from our group finance companies. We also generate interest in consumer by doing the activities like road shows test rides loan meals. Exchange meals test the best contest etc. We also generate interest in consumer by doing the activities like Road Shows, Test Rides, Lone Meals, Exchange Meals, Test the best contest etc. The Bajaj Marketing operations are carried out in 84 locations scattered in 4 states. We have over 500 High Caliber Sales Officer who are led by 80 supervisors who in tern are supported by 7 Regional Managers. With over 500 members in its sales team, Bajaj Marketing and Services Ltd. will be a force to reckon with in the Indian Automobiles Industries. INTRODUCTION OF BAJAJ AUTO LIMITED The Bajaj Group came into existence during the turmoil and the heady euphoria of India's freedom struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the Company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of twenty-seven. Putting the Nation before business, he
41
devoted himself to the latter only after India achieved independence in 1947. But when he did so, he put his heart and soul into it. Within a short while, he not only consolidated the Group, but also diversified into various manufacturing activities, elevating the Group to the status it enjoys till this day. Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj since 1968 and is recognised as one of the most outstanding business leaders in India. As dynamic and ambitious as his illustrious predecessors, he has been recognised for his achievements at various national and international forums. Bajaj is currently India's largest two and three-wheeler manufacturer and one of the biggest in the world. Bajaj has long left behind its annual turnover of Rs.72 million (1968), to currently register an impressive figure of Rs.42.16 billion (US$ 936 million).
Our Philosophy • We approach our responsibilities with ambition and resourcefulness. • We organize ourselves for a transparent and harmonious flow of work. • We respect sound theory and encourage creative experimentation. • And we make our workplace a source of pride. We Believe In • Transparency:
a commitment that the business is managed
• Fairness:
along transparent lines. to all stakeholders in the Company, but
• Disclosure:
especially to minority shareholders. of all relevant financial and non-financial
42
• Supervision:
information in an easily understood manner. of the Company’s activities by a professionally competent and independent board of directors.
43
INTERNATIONAL MARKETING Based on our own brand of globalization, we have built our distribution network over 60 countries worldwide and multiplied our exports from 1% of total turnover in Fiscal 1989-90 to over 5% in Fiscal 1996-97 The countries where our products have a large market are USA, Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65% of the scooter market, in Uruguay with 30% of the motorcycle market and in Bangladesh with 95% of the three-wheeler market. Several new models are being developed specifically for global markets and with these we will progressively endeavour to establish our presence in Europe too. In countries where we perceive a good market potential, we seek a tie up with one of the major industrial establishments, which would be in a position to invest in the research and which would also entail manufacturing activities apart from marketing, distribution and after sales services through a well-established nation-wide network. We offer a full range of services to such business partners: • Training in sales, service and spare parts management based on the Bajaj distribution system. • Active support for setting up manufacturing facilities overseas including transfer of technical know how. • Assistance in setting up an assembly plant for assembly of vehicles from complete knocked down (CKD) kits. • Select machinery and equipment, training of technical personnel, all in a phased manner as required by the regulations in the recipient country.
44
Product Profile The much awaited 4 stroke bike to be launched by Bajaj in coloration with Is all about pure performance as regards engine power, riding stability, Handling easy and braking efficiency. Secondary air induction system, bi starter valve for easy morning starting, five speed transmission system have been introduced in all new bikes which have been come up to introducing bikes in new segment. There have been some new technologies introduced that shows companies product different from others.
45
MARKET COMPOSITION PRODUCT
MAR-DEC (2003)
Scooter gears Scooters-geared Step-thrus Motor-cycles Three-wheelers
3,27658 62957 97499 314641 123302
MAR (2003)-DEC (2004) 533887 52796 124821 166530 127511
GROWTH 38.6 19.2 21.9 88.9 3.3
Source: Survey of Indian industries 2004
46
TWO WHEELER STATISTICS The automobile industry in general and two wheeler industry in particular has shown a tremendous growth over the recent years. According to the Society of Indian automobile Manufactures (SIAM) the industry has grown by 16% in the year 2003/2004.Two Wheeler segment as a whole during the year 2004/05 grew by over 15%.This growth has been due to the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power in the hands of rural people.The two wheeler industry was able to achieve the record performance of crossing 6 million two wheelers with exact sales standing at 6,208,860 during the year 2004-05. The northward trend of growth among the two-wheelers is set to continue in the years ahead.A brief input about the growth of various segment of two-wheelers with the statistics from their leading manufactures are as follows: SCOOTERS 2002-03
2003-04
2004-05
2005-06
2007-08
937506
848434
935279
987498
1020013
Though the metal bodied geared scooters have fallen out of favour of the Indian two-wheeler user their upward trend in growth has been due to rise in the sales of scooterettes and Motor scooters. Bajaj Auto has been able to sell 152,936 units in the year 2004/2005 of two wheelers which don't include motorcycles. They have shown a negative trend in the two
47
wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost its supremacy in the scooter and moped segment as they have shifted focus to motorcycles. MOTORCYCLES 2003-04
2005-06
2006-07
2007-08
2008-09
2906323
3876175
4355168
5193894
6201214
Motorcycles as has been mentioned through out this website have become the most preferred choice among all two-wheeler users. They account for nearly 80% of the total two wheeler sales in the country. This trend is set to continue as more and more models of this hot set of two wheelers enter the market. Bajaj Auto one of the largest manufactures of two wheelers in the country has managed to sell about 1,449,710 units of motorcycle in the year 2004/2005. hero honda which claims to be the largest manufacturer of two-wheeler in the world was able to sell 2.62 million motorcycles during the year 2005/2005. The company also accounts for half the market in the motorcycle segment. MOPEDS 2002-03
2003-04
2004-05
2006-07
2007-08
427498
351612
332294
348437
379574
Mopeds which were once the entry level options in the two-wheeler, have been replaced by entry level or price category bikes which provide all the comfort and advantages of a motorcycle but at an affordable price. Thus it has not come as a surprise that mopeds have shown a negative growth over the recent years. TVS Company one of the pioneers of mopeds manufactures of India was able to sell about 2.90 lakh of mopeds during
48
2005/2006. This trend is supposed to continue in the days to come, as the motorcycles race ahead other two-wheelers will find it difficult keep up with the pace of their growth.
49
MOTORCYCLES Motorcycles have come a long way since they were first introduced in the country way back in the 1950s. The Indian government had got the first set of these mean machines from the Royal Enfield Company of UK for its' Army and Police to patrol the border highways on the rough and tough terrain of the West. Today these sets of two wheelers not only cater to the men in uniform, but also common people who have different needs and expectations from their motorcycles. Today motorcycle companies are taking special care to make their products more user friendly comfortable, safe, and ergonomic without compromising on the fun and thrills of riding. Some bikes like the hero honda Karizma can touch speeds up to 125kmph thus truly satisfying the riders need for speed. motorcycles have also invaded the Hindi film industry where Bollywood heart throbs like John Abraham, Hrithik Roshan , Uday Chopra and Fardeen Khan are seen setting the roads on fire with their set of two wheels. Thus the trend of motorcycles have caught up with the average Indian and there a bike to suit everyone's needs and usage. Premium Segment bikes like the hero honda Karizma and Bajaj Pulsar provides the Generation Y a chance to emulate their idols on screen. These motorcycles come with 5 speed gear box and disc brakes to provide one the extra throttle with the adequate safety measure. Kinetic Acquila the premium segment bike from Kinetic has headlamp that turns head with the bike thus making riding easier in the darkness of the night. These motorcycles also come with factory fitted allow wheels to provide the extra strength and stability. The Enfield Bullet enjoys a loyal following among its users; people who ride these heavy machines once always vouch for their sturdiness and stability. Bullet clubs have cropped up in various cities of the country like
50
Bangalore, where motorcycle users who are in love with their machines frequent the road less traveled India has a burgeoning middle class, which means that value for money bikes like the hero honda splendor, Bajaj Discover and TVS Victor have retained their importance with every passing day. These bikes are a hit among the office goers and small time business men who demand maximum output from their two wheelers. motorcycles like the hero honda splendor come in a wide range of colors and give an average mileage of 70 km per liter.
The entry level segment of motorcycles also has a cut throat competition with the two wheeler manufacturers trying to outdo each other by providing that extra edge in economy biking. Some of the bikes which are available at the entry level include the hero honda CD Dawn, Yamaha Crux, TVS Star and Bajaj CT 100. The TVS motor company has posted strong growth due to the growing popularity of TV Star across all markets. TV Star has an engine displacement of 99.7 cc and claims to give an average
of
over
100
kmpl.
Thus the Indian motorcycle users have a lot of option across all levels to kick start his riding.
51
GROWTH OF TWO WHEELER INDUSTRY The scooter market slowly losing its hold it is considered a family vehicle but perhaps there is a competition from the second hand car market where prices have fallen rapidly. A Maruti 8000 model Is now available for just Rs. 50,000. The scooters manufacturers have to watch this phenomenon and bring out many new product variants in the right price slots to sustain their share in the market. The market share of major players in 2005-06 as follows:
MANUFACTURER
SCOOTERS %
Bajaj Auto Hero Honda Honda Activa Kinetic TVS Suzuki LML Market Size
32 45 26 10 21 26.3
MOTOR CYCLES % 62 81 35 45 57 67.6
MOPEDS % 6 2 7 9 6.1
Source : Survey of Indian Industries 2006.
52
Bajaj Byk
Specifications Engine Type
4 stroke
Cooling Type
Air Cooled
Displacement
92 cc
Max Power
6.5 bhp (4.4 kW) @ 7000 rpm
Transmission Type
4-speed gear box
Electrical System System
12V, AC+DC
Head Light
35/35W
Horn
12 V DC
Chassis Chassis Type
Monocoque
Suspension Front Suspension
Telescopic
Rear Suspension
Hydraulic double acting
Tyres Front Tyre Size
2.50 x 17, 4PR
Rear Tyre Size
2.75 x 17, 6PR
Brakes Front Brakes
110mm Drum
Rear Brakes
110mm Drum
53
Fuel Tank Fuel Tank Capacity
10 litres
Reserve Capacity
3.8 litres
Dimensions Overall length
1900 mm
Overall width
785 mm
Overall height
1010 mm
Wheel Base
1210 mm
Saddle Height
775 mm
Kerb Weight
98 kg
54
Bajaj Wind 125
Specifications Engine Type
Single cylinder, 4Stroke , natural air cooled, Gasoline engine
Displacement
124.6cc
Bore x Stroke
54x54.4 (mm)
Max Power
10.8 Ps (7.92Kw) at 8500 rpm
Max Torque
9.8 Nm at 7000 rpm
Ignition
Digital Ignition
Transmission
5 Speed, constant mesh type
Ignition System Ignitor
Digital Ignition with Variable Ignition Timing Characteristic (DC-CDI) With Engine Over-speed limiter
Electrical System Head Light
Multi-focal Reflector type with Halogen Lamp (35/35W)& Pilot Lamp
Tail Light
Multi-focal Reflector type with 5/10 W Lamp
Side Indicator
Multi-focal Reflector type with 10 W Lamp
Reflex Reflector
Rear Reflex Reflector
Horn
12V DC
Battery
12V , 2.5 Ah
Instruments & Control Instruments Cluster
3 Pod Instruments Cluster with • Speedometer, Odometer & Trip Meter
55
Control Switches
•
Tachometer
•
Fuel guage
Handle bar mounted switches with Functions • Lights ON-OFF • Horn • Dipper • Push Cancel Side Indicator •
Pass
Ignition switch
Combined Steering & Ignition Lock
Stop switches
Front and Rear Brake switches
Dimensions Wheelbase, mm
1260
Overall length, mm
2025
Overall width, mm
740
Overall height, mm
1115
Saddle Height, mm
800
Ground clearance, mm
155
Kerb weight (kg)
121
Fuel Tank Full Tank Capacity
12
Reserve Capacity
2
Bajaj Discover
56
Engine / Transmission Type
4-Stroke, DTS-I, Natural Air Cooled
Displacement
124.52 cc
Max Net Power
8.47 kW(11.51 Ps)@8000 rpm
Max Net Torque
10.8 Nm @ 6500 rpm
Clutch
Wet, Multidisc Type
Ignition system
Microprocessor controlled Digital CDI
Starting system
Kick Start / Self Start
Frame
Double cradle tubular type
Suspension Font suspension Rear suspension
Telescopic Trailing arm with coaxial hydraulic shock absorbers & coil springs
Brakes Front Brake Rear Brake
Mechanical expanding shoe & drum type – 130 mm diameter Mechanical expanding shoe & drum type – 130 mm diameter
Electricals System voltage
12V (AC + DC)
Battery type
12V, 2.5 Ah(KS)/12 V, 9 Ah (ES)
Headlamp
Electric start – 35/ 35W Optoprism- Halogen lamp, Kick start – 60/55 W Round Headlamp
Tail lamp
5/21 W
Brake lamp
10 W
Turn signal lamp
10 W
Horn
12 V, Dc
Tyre Front tyre size
2.75 x 17, 4PR
Rear tyre size
3.00 x 17, 6PR
Fuel Tank capacity
10 Litres (2.3 litres for reserve)
Dimensions
57
Length
2030 mm
Width
760 mm
Height
1065 mm
Wheel base
1305 mm
Turning circle dia
2100 mm
Ground clearance
179 mm
Kerb Weight
125 kg – Kick start / 129 kg – Electric start
Other Features Ride Control Switch
Yes
Ignition cum St.lock
Yes
Headlamp Shape
Round / Fairing
Console
Angular – Twin Pod
Lockable Seat
Yes
Dipper
Yes
Turn Indicator
Push Cancel
Choke
Yes
Day Flasher
Yes
58
59
Bajaj Pulsar 150
Engine
4 Stroke, Single Cylinder, Air Cooled
Cubic Capacity
143.9cc
Max. Power
12 BHP @ 8500rpm
Gear Box
5 Speed
Ignition
CDI
Front Brakes
240mm Disc
Rear Brakes
130mm Drum
Front Tyre
2.75 X 18
Rear Tyre
100/90 X 18
Wheelbase
1265mm
Ground Clearance
155mm
Dry Weight
132 Kg
Tank Capacity
18 Liters
Colors
Black, Silver, Blue & Red
Available in following option a) Kick Start b) Electric Start
60
Bajaj Pulsar 180 Electric Start
Engine
4 Stroke, Single Cylinder, Air Cooled
Cubic Capacity
178.61cc
Max. Power
15 BHP @ 8000rpm
Gear Box
5 Speed
Ignition
CDI
Front Brakes
240mm Disc
Rear Brakes
130mm Drum
Front Tyre
2.75 X 18
Rear Tyre
100/90 X 18
Wheelbase
1292mm
Ground Clearance
155mm
Dry Weight
137 Kg
Tank Capacity
18 Litres
Colours
Black, Silver, Blue & Red
61
Bajaj CT 100 DLX
Specifications Engine Type
4 stroke, Single Cylinder
Cooling Type
Air Cooled
Displacement
99.27 cc
Max Power
8.2 bhp (6.03 kW) @ 7500 rpm
Max Torque
8.05 Nm @ 5500 rpm
Ignition Type
C.D.I
Carburetor
Keihin-Fie
Transmission Type
4 speed gear box
Electrical System System
12 V, AC+DC
Head Light
35/35 W
Horn
12 V, DC
Chassis Chassis Type
Tubular construction
Maximum Payload
239 kg
Suspension Front Suspension
Telescopic
Rear Suspension
Hydraulic, Double acting, Swing arm type
Tyres Front Tyre Size
2.75 - 18, 4/6 PR
Rear Tyre Size
2.75-18, 6 PR
Brakes 62
Front Brakes
Mechanical expanding shoe, Friction type
Rear Brakes
Mechanical expanding shoe, Friction type
Fuel Tank Fuel Tank Capacity
9.3 litres
Reserve Capacity
2.2 litres
Dimensions Overall length
1950 mm
Overall width
770 mm
Overall height
1065 mm
Wheel Base
1225 mm
Kerb Weight
109 kg
Colours Available
Black, Wine Red, Purple
63
Bajaj Avenger
Specifications Engine Type
4-Stroke, DTS-I
Displacement
180 cc
Peak Power
16.5 bhp/12.15 Kw @8000 rpm
Max Torque
15.22 Nm
Suspension Front Suspension Rear suspension
Telescopic longest stroke, 140 mm Triple rate Spring, 5- way adjustable, Hydraulic Shock Absorbers, Vertical travel 90mm
Brakes Front Brake
Hydraulic operated Disc Brakes – 260 mm
Rear Brake
130 mm Drum
Tyres Front tyre size
17” x 90/90
Rear tyre size
15” x 130/ 90
Fuel Tank Main /Reserve
14 L. / 3.4 L
Electricals System Voltage
12 V AC
Head Lamp
60/ 55 W (Halogen)
Horn
12 V Ac
Dimensions Wheel base, mm
1475
64
Kerb Weight kg
154
Colours Available
Black, Red, Purple
65
Launches the exciting new 200 cc Pulsar DTS-i
New Delhi, February 13 2007: Bajaj Auto, the pioneer in performance biking has further extended the portfolio with the launch of the new 200 cc ‘Pulsar’ DTS-i in New Delhi today. The latest offering has set new benchmarks in technology, performance, and styling to address the needs of a growing segment of pro-bikers. The new Pulsar has many firsts to its credit. It comes equipped with an Oil cooler, which helps control engine oil temperatures at sustained high speeds and rpms, thus ensuring more stable engine oil viscosity. The 200cc DTS-i engine generates 18 Ps of raw pulsating power to provide riding excitement to performance hungry bikers. This makes the Pulsar 200 the most sporty and stylish powerhouse on two wheels to pace the Indian roads. It’s also the first bike in India to feature both front and rear tubeless tyres, which besides offering superior stability are safer than conventional tube types and in sync with the offerings abroad for similar applications. The rear tyre is the broadest in its category to ensure better road grip and stability. The new digital console is an advanced version of the latest Pulsar family. Apart from the Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip Meters, the console on the 200 cc Pulsar DTS-i has indicators for Air filter condition, Engine temperature, Battery voltage and Oil level, all of which contribute to enhancing rider info for trouble-free 66
riding. Another first is the use of split seats for styling and comfort. The split grab rail perfectly compliments the new rear chiseled looks. It is also the first Indian bike to have electric start as the sole means of engine cranking, dispensing with the kick lever. Speaking on the launch Mr. S.Sridhar, VP (Sales & Marketing-2 wh), Bajaj Auto Ltd said, “This launch is in line with our strategy of enhancing our product portfolio to offer riding excitement to pro-bikers. Our entire focus and effort is to deliver outstanding technology and performance. The new Pulsar has now raised the bar in the motorcycle industry with superior technology and features such as the engine oil cooler, digital console etc.” He added, “We are already market leaders by far in the performance segment and launch of Pulsar 200 DTS-i would further reinforce our position in this important segment. The bike joins the immensely popular 150 cc and the 180cc Pulsar DTS-i to extend the Pulsar DTS-i range across a range of price and performance points. ” The bike would be available at exclusive Probiking showrooms at select locations across the country. Performance biking now also comes at an attractive price of Rs.65,497 ex showroom, New Delhi. More about Pulsar 200 DTS-i The Bajaj Pulsar 200 DTS-i’s higher sportier stance with greater chassis rear inclination is supported with some of these technologically advanced features. A lowered Headlamp/Fairing assembly alongwith a high tail-end, giving it an aggressive, ready to pounce stance. An all Stainless Steel silencer with a Aluminium muffler can for genuine sporty looks and long life. Large Ø 33 mm Front forks for muscular looks and to take care of the extra suspension and braking loads. Large Ø 260 mm front disc for strong and predictable stopping power. A unique Auto Switchover feature comes into play incase one of the two Headlamp filaments stops functioning. A unique Battery Energy Conserving feature ensures a fixed delay after 3 continuous cranks. All new ‘Blue tinged’ bulbs for the main headlamp and parking lamps. These emit strong ‘White’ light for a distinctive look. Sleek, Twin row, Light-Emitting Diodes (LEDs) for the tail and
67
brake lamp ensures “Zero Maintenance”. and a long battery life. Backlit, Non-Contact type, Soft-touch Handlebar Switches. Self-canceling Indicators that switch off when the turn has been completed and the handlebar comes to a ‘straight ahead’ position with a pre-set automatic switch off function, even if the turn has not been undertaken. Smooth, positive, virtually friction-free gearshift feel with new shifter assembly, an integrated over-shift preventor, and shift forks with rollers mated to a change drum. A Low Maintenance Battery with a unique venting valve, drastically reducing electrolyte loss and therefore reducing frequency of routine maintenance. Black paint theme carried over to the front fork legs, the rear shock absorbers, and the swing arm, in addition to the engine, for deadly looks. High performance exposed ‘O’ ring Drive chain for running in dusty conditions, providing for clean uncluttered looks and commensurate with the bikes image.
68
Engine
Suspension
Technical Specifications Type 4-stroke, DTS-i, Oil cooled Displacement 198.8 cc Max Power 18 Ps / 13.25 Kw Max Torque 1.75 kgm / 17.17 Nm Front Rear
Brakes
Front Rear
Tyres
Front Rear
Telescopic forks 135 mm stroke Triple rate spring, 5 way adjustable, gas charged NitroX shock absorbers 260 mm hydraulically operated disc brake Mechanically expanding 130 mm drum type 90/90 x 17” Tubeless tyre, shod on aluminium alloy wheels 120/80 x 17” Tubeless tyre, shod on aluminium alloy wheels
Fuel Tank
Full
15 Lts ( 2 liters of usable reserve)
Electricals
System Headlamp
12V AC + DC 35/35W clear lens type with 2 pilot lamps
Dimensions
Wheelbase Weight
1345 mm 145 Kg
69
India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was the second largest two wheeler manufacturer in the world starting in the 1950’s with the birth of Automobile Products of India (API) that manufactured scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The license raj that existed between the1940s to1980s in India, did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a seller’s market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters.
70
The motorcycle segment had the same long wait times with three manufacturers; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at that time and took the higher end of the market but, there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian market dynamics from the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.
71
BOARD OF DIRECTORS
No. 1 2 3 4 5 6 7 8 9
Name of the Directors Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Takao Eguchi Mr. Satyanand Munjal Mr. Om PrGaurav Munjal Mr. Tatsuhiro Oyama Mr. Masahiro Takedagawa Mr. Narinder Nath Vohra
Designation Chairman & Whole-time Director Managing Director Jt. Managing Director Whole-time Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive & Independent Director Non-executive
&
Independent
Director PrGaurav Non-executive
&
Independent
Malik 12 Mr. Analjit Singh
Director Non-executive
&
Independent
13 Dr. Pritam Singh
Director Non-executive
&
Independent
14 Ms. Shobhana Bhartia
Director Non-executive
&
Independent
15 Dr. Vijay Laxman Kelkar
Director Non-executive
&
Independent
10 Mr. Pradeep Dinodia
11 Gen.(Retd.)
Ved
Director
72
Hero Honda Motorcycle Ltd.
Type Public company BSE:HEROHONDA M Founded January 19, 1984 in Gurgaon, Haryana, India Headquarters Haryana, India Om PrGaurav Munjal, Founder Key people
Industry Products Revenue Website
Mr. Brijmohan Lall Munjal, Chairman Mr. Toshiaki Nakagawa, Joint Managing Director Mr. Pawan Munjal, Managing Director Automotive Motorcycles, Scooters U$ 2.8 billion http://www.herohonda.com/site/home/home.asp
HERO HONDA HEADQUARTERS
73
Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are low powered but very fuel efficient. Contents •
1 Models o
•
•
1.1 Bikes
2 Company Profile o
2.1 Just-in-Time
o
2.2 Ancillarisation
o
2.3 Dealer Network
o
2.4 Financial Planning
o
2.5 Quality
o
2.6 Diversification
3 External links
Models ] 74
Bikes •
Hero Honda Splendor Plus
•
Hero Honda Passion Plus
•
Hero Honda Karizma
•
Hero Honda CBZ
•
Hero Honda Super Splendor
•
Hero Honda CD Dawn
•
Hero Honda CD Deluxe
•
Hero Honda Achiever
•
Hero Honda Glamour
•
Hero Honda Ambition
Hero Honda "Splendor" Model
75
[ Company Profile ] “Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940’s and turned into the world’s largest bicycle manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make free wheel bicycle critical components and have diversified into different ventures like product design. The Hero Group philosophy is: “To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity”. The Hero group vision is to build long lasting relationships with everyone (customers, workers, dealers and vendors). The Hero Group has a passion for setting higher standards and “Engineering Satisfaction” is the prime motivation, way of life and work culture of the Group. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: “We, at Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics
76
and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium”. This alliance became one of the most successful joint ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for HHM. == Growth == The business growth of Hero Honda has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from the start and that is what has helped them to achieve break-through in the 77
competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors:
78
[ Just-in-Time ] The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date.. This is the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle. [ Ancillarisation ] An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. Employee Policy: Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The 79
philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but also for the immediate family members. [ Dealer Network ] The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nationwide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours. [ Financial Planning ]
80
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover. [ Quality ] Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes.
81
[ Diversification ] Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward integration in its manufacturing activities has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then
development. Further expansion is expected in the areas of Insurance and Telecommunication. The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customer
82
came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software
83
RESEARCH METHODOLOGY
It is well known fact that the most important step in marketing research process is to define the problem. Choose for investigation because a problem well defined is half solved. That was the reason that at most care was taken while defining various parameters of the problem. After giving through brain storming session, objectives were selected and the set on the base of these objectives. A questionnaire was designed major emphasis of which was gathering new ideas or insight so as to determine and bind out solution to the problems. DATA SOURCE
Research included gathering both Primary and Secondary data. Primary data is the first hand data, which are selected a fresh and thus happen to be original in character. Primary Data was crucial to know various customers and past consumer views about bikes and to calculate the market share of this brand in regards to other brands. Secondary data are those which has been collected by some one else and which already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites.
84
RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data collection and best suited for descriptive type of research survey includes research instrument like questionnaire which can be structured and unstructured. Target population is well identified and various methods like personal interviews and telephone interviews are employed. SAMPLING UNIT It gives the target population that will be sampled. This research was carried in Meerut. These were 100 respondents. DATA COMPLETION AND ANALYSIS After the data has been collected, it was tabulated and findings of the project were presented followed by analysis and interpretation to reach certain conclusions. SCOPE My project was based on the A COMPARATIVE STUDY of Consumer satisfaction towards BAJAJ V/S HERO MOTOCORP and data was taken in the City MEERUT only.
85
LIMITATIONS
1. Research work was carried out in one Distt of Punjab (MUKTSAR) only the finding may not be applicable to the other parts of the country because of social and cultural differences.
2. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.
3. Shortage of time is also reason for incomprehensiveness.
4. The views of the people are biased therefore it doesn’t reflect true picture.
86
DATA ANALYSIS
Q1) Which bike do you have? Hero Honda Bajaj Any other
47 38 15
Hero honda Bajaj Any other
87
Q2) Which Model do you Have? Hero Honda Splender Passion Karizma Any other
Bajaj CT 100 Discover Pulsar Any other
21 13 7 6
7 12 11 8
No of Persons
25 20
Hero Honda Splender
15
Passion 10
Karizma Any other
5 0 1 Model Nam e
No of Persons
14 12
Bajaj
10
CT 100
8
Discover
6
Pulsar
4
Any other
2 0 1 Model Nam e
88
Q3) In which family Income level do you Fall? 100000-200000 200000-300000 300000-400000 above 400000
22 45 23 10
No of Persons
50 40
100000-200000
30
200000-300000
20
300000-400000
10
above 400000
0 1 Incom e level
89
Q4) For how long do you own a bike? 0-1 year 1-2 year 2-3 year above 3 year
34 29 26 11
40 30
0-1 year
No of 20 Persons 10
1-2 year 2-3 year above 3 year
0 1 No of years
90
Q5) For what purpose do you use your Motor Bike? Hero Office Purpose Personal purpose Joy Purpose Other
Honda 9 13 19 6
Bajaj 4 15 16 3
No of Persons
20 15 Hero Honda
10
Bajaj
5 0 Office Personal Joy Purpose purpose Purpose
Other
Purpose
91
Q6) How do you come to know about this Motor Bike?
Newspaper
Hero Honda 4
Bajaj 2
Television
23
16
Magazine
2
1
18
19
Friends & Relative
No of Persons
25 20
New spaper
15
Television
10
Magzine Friends & Relative
5 0 Hero Honda
Bajaj
Nam e of Com pany
92
Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say
87% 5% 8%
Yes No Cant say
93
Q8) Do you have full knowledge about Bikes before buying? Hero Honda
Bajaj
Yes
25
23
No
22
15
No of persons
30 25 20
Yes
15
No
10 5 0 Hero Honda
Bajaj
Com pany Nam e
94
Q9) Which Factor below Influence your decision?
No of Persons
Price Mileage Quality Resale Value Status symbol
Hero Honda
Bajaj
72% 78% 65% 40% 10%
78% 64% 48% 28% 7%
100% Price
80%
Mileage
60%
Quality
40%
Resale Value
20%
Status symbol
0% Hero Honda
Bajaj
Com pany Nam e
95
Q10) How would you rate the following factors of Bikes with respect to different company? Hero Honda
Bajaj
Mileage Price Pick up Maintenance Look & Shape
74% 68% 70% 58% 85%
72% 65% 80% 62% 80%
Brand Image
53%
55%
No of Persons
100% 80%
Mileage
60%
Price
40%
Pick up
20%
Maintenance
0%
Look & Shape Hero Honda
Bajaj
Brande Image
Com pany Nam e
96
Q11) If new Bike with good features comes in, then would you like to change your bike? Hero Honda
Bajaj
19 17 11
21 14 3
Yes No Cant say
No of Persons
25 20 15
Hero Honda
10
Bajaj
5 0 Yes
No
Cant say
View s
97
CONCLUSION
1.
Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 because they prefer stylish looks and rest of the models of Hero Honda are purchased more by daily users who needs more average of bikes than looks.
2.
Hero Honda is considered to be most fuel-efficient bike on Indian roads.
3.
Service & Spare parts are available throughout India in local markets also.
4.
While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency.
5.
Majority of the respondent had bought their motorcycle more than 3 years.
98
RECOMMENDATIONS 1.
Bajaj should introduce some more models having more engine power.
2.
Hero Honda should think about fuel efficiency in case of upper segment bikes.
3.
More service centers should be opened.
4.
Maintenance cost and the availability of the spare parts should also be given due importance.
5.
They also introduce some good finance/discount schemes for students.
6.
The price should be economic.
99
BIBLIOGRAPHY
Kotler, Philip and Gary Armstrong (1999), Marketing Management (New Delhi: Prentice Hall of India) Kothari, C. R.(1999), Research Methodology (Delhi: Global Business Press) Magazines: Business World Business Today India Today
(15 April, 2004) (Collector Edition Vol.1) (16 April, 2005)
1. www.herohonda.com
2. www.google.com
3. www.bajaj.com
4. www.twowheeler.com
5. www.extrememachines.com
100
QUESTIONNAIRE
NAME: - ……………………………………………… CONTACT NO ……………………………………….
AGE:-
15-20
20-25
25.30
Above 30
OCCUPATION:-
Businessman
Employee
Student
Other
Q1) Which Bike do you have?
Hero Honda
Bajaj
Any Other
Q2) Which Model do you have?
Hero Honda: -
Bajaj: -
Splendor
Passion
Karizma
Other
CT 100
Discover
Pulsar
Other
101
Q3) In which Family Income do you Fall?
100000-200000
200000-300000
300000-400000
Above 400000
Q4) For how long do you own a Bike?
0-1 year
1-2 year
2-3 year
above 3 years
Q5) For what purpose do you use your Motor Bike?
Office Purpose
Personal Purpose
Joy Purpose
Other
Q6) How do you come to know about this Motor Bike?
Newspaper
Television
Magazines
Friends/Relatives
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes
No
Can’t say 102
Q8) Do you have full knowledge about Bikes before buying?
Yes
No
Q9) Which factor below influence your decision?
Price
Mileage
Resale Value
Status Symbol
Quality
Q10) How would you rate the following factors of bikes with respect to different companies? Hero Honda
Bajaj
Mileage
Price
Pick up
Maintenance
Look/Shape Brand Image
103
Q11) In new bike with good feature comes in, then would you like to change your bikes?
Yes
No
Can’t say
Q12) Any Suggestions for Company ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………
Date:
(Signature)
104
