PROJECT REPORT OF INTERNATIONAL BUSINESS ENVIORNMENT ON
COMPARA COMP ARATIVE TIVE STUD STUDY Y OF BAJAJ V/S HERO HONDA
SUBMITED TO
Ms. Rishu Sharma
SUBMITED BY
PULKIT
CHAWLA VIJAY ARYA ANKIT KUMAR SANTO SH KUMAR VICKY KUMAR ND
MBA 2
Semester
1
NSB SCHOOL OF BUSINESS
Vs.
2
ACKNOWLEDGEMENT The research on “Comparative Study between Bajaj and Hero Honda” has been given to me as part of the curriculum in 2-Years Masters 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 have completed this study under the able guidance and supervision of Ms. Rishu Sharma 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 Mere ackno acknowl wledg edgem emen entt may not redee redeem m the the debt debt I owe owe to my pare parent ntss for for thei their r direct/indirect support during the entire course of this project. .
PULKIT CHA C HAWLA WLA VIJAY VIJAY ARYA ARYA ANKIT KUMAR SANTOSH KUMAR VICKY KUMAR
3
INDEX Sr No.
Particulars
1.
OBJECTIVES
2.
HISTORY OF BAJAJ - Profile - Key Person - Bajaj Intro - Company History - Timeline of new releases
3.
Page no
HISTORY OF HERO HONDA - Board of Directors - Company Profile
4. RESEARCH METHODOLOGY - Data Source - Research Approach - Sampling unit - Data Completion and Analysis - Scope 5. LIMITATION OF RESEARCH STUDY 6. ANALYSIS AND INTERPRETATION 7. CONCLUSION 8. RECOMMENDATION 9. BIBLIOGRAPHY 10. ANNEXURE
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OBJECTIVES:1. To know the the market market shar sharee of Bajaj Bajaj & Hero Hero Hond Honda. a. 2. To know the percept perception ion of customers customers regardi regarding ng bikes. bikes. 3. To determine determine the customer customerss satisfa satisfaction ction regardi regarding ng bikes. bikes. 4. To determine determine the factors factors influenc influencing ing the choice choice of customers customers regarding regarding bikes. bikes.
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Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers wheelers they also manufacture manufacture three wheelers. wheelers. The company had started way back in 1945. Initially 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 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of the Indian milieu and over 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. 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. 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 Discover 125 offers offers the consumer consumer a great performance performance without making making a big hole in the pocket.
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Bajaj Auto Bajaj Auto was one of the earliest two wheeler manufacturers in India and is now one of the worlds largest two-wheeler and three-wheeler manufacturers. MOTORCYCLES
Bajaj has redefined both the value and the premium segments with its motorcycles offering unique features not seen in their competitors in those classes. The entry level Platina features push to cancel canc el indicators, unique throttle control, chrome graphics, fuel gauge and alloy wheels which are not seen on more expensive executive class machines of its competitors. The Bajaj XCD 125 offers an excellent value proposition with its larger engine, LED tail lamp and Digital meter at the price point of 100cc vehicles from its competitors. The Discover 135 is available in Disc and Drum brake variants falls between the executive and premium segments and is ideal for those looking for a bit of additional power without sacrificing too much on fuel effeciency. effeciency. Recently a Sport variant has h as been announced which is expected to hit the markets shortly. In the premium segment the Bajaj range includes the Pulsar 150, 200 and 220cc variants in the sports segment and the Avenger Avenger 200 in the cruiser segment. SCOOTERS
With the launch of the Kristal, Bajaj Auto have reentered the autogeared scooter segment and borrows a lot of technologies techno logies from the successful motorcycle range such as DTSi, ExhausTec and SNS suspension.
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PROFILE: F o un de r
Jamnalal Bajaj
Year of Establishment
1 92 6
Industry
Automotive - Two & Three Wheelers
Business Group
The Bajaj Group
Listings & its codes
BSE – Code: 500490; NSE - Code: BAJAJAUTO
Presence
Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia.
Joint Venture
Kawasaki Heavy Industries of Japan
Registered & Head Office
A k ur di Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398
Works
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Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136
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Chakan Industrial Area, Chakan, Pune 411501
•
E-mail
[email protected]
Website
www.bajajauto.com
KEY PERSONS: Board of Directors
Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.S. Mehta Kantikumar R. Podar
Chairman Vice Chairman & Whole-Time Director Managing Director Executive Director Whole-Time Director Director
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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
Director Director Director Director Director Director Director Director Director Director
Committees of the Board Audit Committee
S.H. Khan D.J. Balaji Rao J.N. Godrej Naresh Chandra Nanoo Pamnani
Chairman
Shareholders’ & Investors’ Grievance committee
D.J. Balaji Rao J.N. Godrej Naresh Chandra S. H. Khan
Chairman
Remuneration committee
D.J. Balaji Rao S.H. Khan Naresh Chandra
Chairman
Registered under the Indian Companies Act, VII of 1913 REGISTERED OFFICE Akurdi, Pune 411 035 WORKS Akurdi, Pune 411 035 Bajaj Nagar, Waluj Waluj Aurangabad 431 136 Chakan Industrial Area, Chakan, Pune 411 501
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Bajaj Autos Ltd. Bajaj Auto Limited
Type Founded Headquarters
Public 1945 Pune,, India Pune
Key people
Rahul Bajaj (Chairman)
Revenue Net income Employees Website
Rs. 1,01, Rs. 1,01,06 063 3 bill billio ion n (200 (2006) 6) or USD 1.87 billion 1.87 billion Rs.. 17,016 billion Rs ??? www.bajajauto.com
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 Pune,, Maharashtra Maharashtra,, with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune near Pune.. Bajaj Auto makes motorscooters,, motorcycles and the auto rickshaw. motorscooters rickshaw.
Contents
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1 Compa Company's ny's history 1.1 Timeline of new release releasess o 2 Sc Scoo ooter terss 3 Moto Motorcyc rcycles les 4 Upc Upcomi oming ng Mod Models els 5 Ne New w Ima Image ge 6 Forbes Global 2000 Ranking - 2005 7 Ext Extern ernal al link linkss
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8 Ref Refere erence ncess
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• • • • •
Company's history Bajaj Bajaj Auto Auto came came into into exist existen ence ce on Novem November ber 29, 1945 as M/s Bachraj Bachraj Tradi Trading ng Corporation Private Limited. It started off by selling imported two- and three-wheelers in 10
India. In 1959 1959,, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960 1960.. In 1970 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 1977 1985,, it started producing at Waluj in Aurangabad Aurangabad.. In 1986 1986,, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995 1995,, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.
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, M-80, Kawasaki Bajaj KB100 1990 - Bajaj Sunny 1994 - Bajaj Classic 1995 - Bajaj Super Excel 1997 - Kawasaki Bajaj Boxer , Rear Engine Diesel Autorickshaw Autorickshaw 1998 - Kawasaki Bajaj Caliber , Legend Legend(India's (India's first four-stroke scooter) 2000 - Bajaj Saffire 2001 - Eliminator, Pulsar 2003 - Caliber115 Caliber115,, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, 100, New Bajaj Chetak 4-stroke with Wonder Gear , Bajaj Discover DTS-i 2005 - Bajaj Wave, Wave, Bajaj Avenger , Bajaj Discover 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200
Some of the models that Bajaj makes (or has made) are:
Scooters o o o o o o
Bajaj Sunny Bajaj Chetak Bajaj Cub Bajaj Super Bajaj Wave Bajaj Legend
Motorcycles o o o
Kawasaki Eliminator Bajaj Pulsar Bajaj Kawasaki Wind 125 11
o o o o o o
Bajaj Boxer Bajaj CT 100 Bajaj Platina Bajaj Caliber Bajaj Discover Bajaj Avenger
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.
DETAILS OF SOME BIKES OF BAJAJ
Bajaj Platina Style and fuel economy at a bargain price. The Bajaj Platina offers features not yet found on more expensive models in the 100cc range
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Using the 97.2cc, 8.2BHP powerplant that does duty dut y on the CT100 the Bajaj Platina gives excellent mileage. Alloy Wheels and chrome decals make it one of o f the best looking 100cc motorcycles around. Optoprism headlamp for better lighting and safety. Spring in Spring rear suspension built to handle the rough Indian roads. Price on Road Individual : Rs. 39,500 Company : Rs. 44,350 Fuel Efficiency (Kmpl) City : 60 +/- 10% Normal : 70 +/- 10% Delivery Time 3 to 7 Days
Bajaj Discover 135 ES Add some big bike muscle without breaking the bank with the Bajaj Discove 135. With Wit h over 13BHP on tap, Disc brakes and a nd broad rubber this is a mean machine. The bike is fully equipped with a self start, front disc brakes, six spoke alloy wheels and a tachometer Improved handling thanks to gas charged rear shock absorbers and a broad 100/90 rear tyre. Price on Road Individual : Rs. 57,600
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Company : Rs. 64,800 Fuel Efficiency (Kmpl) City : 45 +/- 10% Normal : 60 +/- 10% Delivery Time 2 to 4 Days
Bajaj Pulsar 150 ES DTSi Upgrade The Pulsar 150 in its latest avtaar sports alloy wheels, digital meters, led tail lamps and sporty side cowls along with a revised gear box and retuned engine. Power output has been upped up ped to 13.9 BHP with torque figures also going up to 12.76 Nm 5 Speed gearbox now with the standard one down rest up pattern. Digital speedo console with dual trip meters and over rev warning. Gas charges Nitrox shock absorbers aid handling Price on Road Individual : Rs. 67,550 Company : Rs. 76,100 Fuel Efficiency (Kmpl) City : 45 +/- 10% Normal : 55 +/- 10%
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Delivery Time 2 to 4 Days
Bajaj Pulsar 200 DTSi Powered by the smoothest engine of the Bajaj Pulsar range with perhaps the most attractive looks in the Pulsar range this performance motorcycle never fails to impress. Delivering almost 20 BHP the engine delivers great performance without seeming stressed. Gas filled shock absorbers and broad tubeless tyres and a well sorted chassis make for excellent handling. Price on Road Individual : Rs. 81,050 Company : Rs. 90,850 Fuel Efficiency (Kmpl) City : 30 +/- 10% Normal : 40 +/- 10% Delivery Time 7 to 15 Days
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Bajaj Pulsar 220 DTS Fi With the Pulsar 220 the engineers at Bajaj Auto have pushed the envelope and introduced the Indian motorcycle market to the world of performance biking. The 20PS engine has fuel injection for optimum performance. Oil cooler keeps the oil maintain the right viscosity for better lubrication. Front and rear disc brakes, tubeless tyres and powerful headlights for improved safety. Price on Road Individual : Rs. 98,150 Company : Rs. 110,100 Fuel Efficiency (Kmpl) City : 30 +/- 10% Normal : 40 +/- 10% Delivery Time 7 to 15 Days
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Bajaj Avenger Avenger 200 Put your feet up and relax, enjoy the padded seat and watch the scenery as you eat the miles away. Featuring a slightly detuned version of the 200cc 200 cc powerplant that does duty in the Pulsar 200 this bike develops a healthy 17.5 PS. Oil cooler ensures that the lube retains its optimum viscosity for longer engine life and performance. Broad tyres and disc brakes for a safe and steady ride. Price on Road Individual : Rs. 78,550 Company : Rs. 88,100 Fuel Efficiency (Kmpl) City : 30 +/- 10% Normal : 40 +/- 10% Delivery Time 7 to 15 Days
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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 scoote scooters. rs. API manufac manufactur tured ed the Lambret Lambrettas tas but, but, another another company company,, Bajaj Bajaj Auto Auto Ltd. Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). 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. The motorcycle motorcycle segment segment had the same long wait times with three manufacturers manufacturers;; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only fourstroke 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. respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies companies to enter the Indian Indian market through minority minority joint ventures. ventures. The two-wheeler 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 twowheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, stylin styling g options options,, prices, prices, and differ different ent fuel fuel effic efficien iencie cies. s. The foreig foreign n compani companies es new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.. Hero Honda has a wide variety of models ranging from the CD Deluxe in the value for money market to the recently upgraded Karizma R which has set the new n ew norm in the performance segment. Old favourites like the Splendor + and Passion + have been upgraded and joined by variants such as the Splendor NXG. In the growing 125cc segment the Super Splendor and Glamour sport the new 125cc Quantum Core engine and are gaining popularity. The Hero Honda CBZ Xtreme and its sibling the Hunk compete with each other in the performance segment.
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BOARD OF DIRECTORS No. Na Name of the Directors
Designation
1
Mr. Mr. Brijmohan Lall Munjal
Chairman & Whole-time Director
2
Mr. Mr. Pawan Munjal
Managing Director
3
Mr. Toshiaki Nakagawa
Jt. Managing Director
4
Mr. Takao Eguchi
Whole-time Director
5
Mr. Mr. Satyanand Munjal
Non-executive Director
6
Mr. Mr. Om Prakash Munjal
Non-executive Director
7
Mr. Tatsuhiro Oyama
Non-executive Director
8
Mr. Masahiro Takedagawa
Non-executive Director
9
Mr. Narinder Nath Vohra
Non-executive & Independent Director
10
Mr. Mr. Pradeep Dinodia
Non-executive & Independent Director
11 Gen.(Retd.) Ved Ved Prakash Malik
Non-executive & Independent Director
12
Mr. Mr. Analjit Singh
Non-executive & Independent Director
13 Dr. Pritam Singh
Non-executive & Independent Director
14 Ms. Shobhana Bhartia
Non-executive & Independent Director
15
Non-executive & Independent Director
Dr. Vijay Laxman Kelkar
Hero Honda Motorcycle Ltd.
Type
Public company BSE BSE::HEROHONDA M
20
Founded Headquarters
Key people
Industry Products Revenue Website
January 19, 1984 in Gurgaon Gurgaon,, Haryana Haryana,, India Haryana,, India Haryana Om Prakash Munjal, Founder Mr. Mr. Brij Brijmo moha han n Lall Lall Mu Munj njal al,, Chai Chairm rman an Mr. Mr. Toshiak oshiakii Nakaga Nakagawa, wa, Joint Joint Managi Managing ng Director Mr. Mr. Pawan Munjal, Managing Director Automotive Motorcycles, Scooters U$ 2.8 billion http://www.herohonda.com/site/home/home.asp
HERO HONDA HEADQUARTERS
Indian manufa manufactur cturer er of motorcy motorcycles cles and Hero Honda Hero Honda Motorc Motorcycles ycles Limited Limited is an Indian scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan 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 [citation needed ]. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana Haryana,, India. It specializes in dual use motorcycles that are low powered but very fuel efficient.
Contents 21
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1 Mo Mode dels ls 1.1 1. 1 Bik Bikes es o 2 Com Compan pany y Pro Profile file 2.1 Just Just-in-in-Time Time o 2.2 Ancilla Ancillarisation risation o 2.3 Dea Dealer ler Netw Network ork o 2.4 Financ Financial ial Planni Planning ng o 2.5 Qua Qualit lity y o 2.6 Diversifi Diversification cation o 3 Ext Extern ernal al link linkss
[ Models ] 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
[ Company Profile ]
22
“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 orig origin inal ally ly star starte ted d in the the 1940 1940’’s and turn turned ed into into the the worl world’ d’ss larg larges estt bicy bicycl clee 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 “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 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 million bicycles producing 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 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:
[ Just-in-Time ]
23
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 inhouse, 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 probab probably ly the only company company to have have master mastered ed the art of the just-injust-in-tim timee invent inventory ory principle.
[ Ancillarisation ] An integr integral al part part of the Group Group strate strategy gy of doing doing busine business ss differ different ently ly was provid providing ing 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: Po licy: 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 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 a lso 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 nation-wide 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. hou rs.
[ Financial Planning ] The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one o ne 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 e mployee turnover.
[ Quality ]
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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.
[ Diversification ] Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively look looked ed at dive divers rsif ific icat atio ion. n. A cons consid ider erab able le leve levell of back backwa ward rd inte integr grat atio ion n in its its manu manufa fact ctur urin ing g acti activi viti ties es has has been been ampl amplee in the the Grou Group' p'ss grow growth th and and led led to the the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Mun jal Auto Componen Components ts and Mun Munjal jal Showa Showa Limit Limited ed amongs amongstt other other componen componenttmanufacturing 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 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, inform informati ation on technol technology ogy,, which which includ includes es custom customer er respon response se servic services es and softwa software re deve devellopm opment. ent. Furt urther her expa expans nsio ion n is expe expect cted ed in the area areass of Insur nsuran ance ce and 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 customers
DETAILS OF SOME BIKES OF HERO HONDA
25
Hero Honda Splendor Plus The world best selling motorcycle keeps its commitment of a trouble free, economical commuter. The Splendor Plus is constantly evolving and a nd features bright multi-reflector headlight, tail light and indicators for improved safety. safety. Die Cast Alloy wheels are now standard and the updated graphics provide a contemporary look to this proven performer. Price on Road Individual : Rs. 49,550 Company : Rs. 56,350 Fuel Efficiency (Kmpl) City : 60 +/- 10% Normal : 75 +/- 10% Delivery Time 4 to 7 Days
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Hero Honda Passion Plus One of the most attractive bikes in the executive segment the Passion Plus integrates the proven 100cc power mill of the Splendor in a body bo dy that exudes style. The Passion Plus has always been a stunner with its two tone graphics, body coloured mirrors and large instrument cluster. New bright multi-reflector headlight, tail light and indicators provide improved safety while the updated graphics and black finish alloy wheels and engine provide a contemporary look to this proven performer. Price on Road Individual : Rs. 51,300 Company : Rs. 58,250 Fuel Efficiency (Kmpl) City : 55 +/- 10% Normal : 70 +/- 10% Delivery Time 4 to 7 Days
Hero Honda Passion Plus One of the most attractive bikes in the executive segment the Passion Plus integrates the proven 100cc power mill of the Splendor in a body bo dy that exudes style. The Passion Plus has always been a stunner with its two tone graphics, body coloured mirrors and large instrument cluster.
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New bright multi-reflector headlight, tail light and indicators provide improved safety while the updated graphics and black finish alloy wheels and engine provide a contemporary look to this proven performer. Price on Road Individual : Rs. 51,300 Company : Rs. 58,250 Fuel Efficiency (Kmpl) City : 55 +/- 10% Normal : 70 +/- 10% Delivery Time 4 to 7 Days
Hero Honda Hunk Muscular styling and aggressive lines matched with a powerful 14.2 PS engine mqke for an attractive machine. Gas filled shock absorbers provide excellent suspension and great handling. Three dial instrument console has painted dials that match the muscular over all sporty styling of the bike. Price on Road Individual : Rs. 68,100 Company : Rs. 77,050 Fuel Efficiency (Kmpl) City : 40 +/- 10%
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Normal : 50 +/- 10% Delivery Time 4 to 7 Days
Hero Honda Pleasure Easy to handle and attractively packaged this scooter from Hero Honda has tremendous appeal for ladies. 102cc engine with excellent reliability and adequate power for most applications. Light weight ABS body in a wide variety of attractive colours. Body coloured mirrors and large speedo console add to the looks. Tuffup Tuffup tube that immediately seals the tube in case of a puncture. Price on Road Individual : Rs. 44,150 Company : Rs. 49,400 Fuel Efficiency (Kmpl) City : +/- 10% Normal : +/- 10% Delivery Time 15 to 20 Days
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Hero Honda Splendor NXG The new generation Splendor NXG has more contemporary styling and increased power output backed by impeccable pedigree. The engine has been fine tuned and now delivers 7.7PS without sacrificing on mileage. Smart angular fairing, sporty tank lines and attractive 5 spoke cast alloy wheels add to the attractive styling of the motorcycle. Price on Road Individual : Rs. 48,700 Company : Rs. 55,250 Fuel Efficiency (Kmpl) City : 60 +/- 10% Normal : 75 +/- 10% Delivery Time 4 to 7 Days
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Hero Honda Karizma R Easily the most comfortable big bike in India the Karizma is a great motorcycle to eat away the miles. The 223cc engine develops 17 BHP and is super smooth through the rev range. Aided by a refined gearbox the powerplant never feels stressed. A long wheelbase (1355 mm), good suspension and excellent brakes aid the stabiltiy and handling of this motorcycle. The speedo console housed in its attractive fairing features a digital speedometer, trip meter and clock. Price on Road Individual : Rs. 87,100 Company : Rs. 98,050 Fuel Efficiency (Kmpl) City : 30 +/- 10% Normal : 40 +/- 10% Delivery Time 7 to 10 Days
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IMPACT OF RECESSION ON THE TWO WHEELER INDUSTRY Two Wheelers registered minor growth of o f 1.85 % during April – December 2008. However, Two Two Wheelers sales recorded 15.43 percent fall in December 2008 over the same month last year. In two wheeler segment, Hero Honda has witnessed 10% fa ll (215,931 units in Dec 2008) in sales as compared to December 2007 (240,532 units). Bajaj Automobile has registered 33% fall in its over all two wheeler sells, compared to last year. The company has reported 37% negative growth in bike sells. Due to the recession, the medium class which is the ultimate target customer of the two wheeler industry lost their job. So they started saving mone y and cancelled there plan of o f taking the new vehicles, which affected the two wheeler industry as the production is going on but the demand is short. In the above described record the two major firms in this sector are facing problem regarding their sales. It is sacrilege to say that the world economy econo my has been undergoing with the huge crisis. And automobile industry is not far behind in league. Undoubtedly, the coming time would be a challenge cha llenge for the automobile industry. industry. Bike manufacturers have already a lready started facing the problems, loan & finance for new bike is not available easily in semi se mi urban & rural market. Banks and an d other financial institutions have baked out from finance. The result of layoff due to the recession affected the whole world a lot and every sector is facing the problem in form of declining de clining sales. Indian auto mobile industry of no exception is also affected by it. The car manufacturers are delaying their new product launch and waiting for the condition of the economy to get g et stabilize so that they can launch the new product. Due to the shortage of demand the production is getting affected which is affecting the industries so they are forced to opt for the cost cutting measures resulting in the layoff.
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33
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 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. collected by some one else and which Secondary Secondary data are those which has been collected already have been passed through statistical process. Secondary data has been taken from internet, newspaper, magazines and companies web sites. RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data data collec collectio tion n and best best suited suited for descri descripti ptive ve type type of resear research ch survey survey includ includes es 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 Muktsar (Distt Muktsar) These were 100 respondents. DATA DATA COMPLETION COMPLE TION AND AN D 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 Comparative Study of Bajaj V/S Hero Honda and data was taken in the City Muktsar only.
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LIMITATIONS 35
1. Research Research work work was carried carried out in one Distt Distt of Punjab (MUKTSAR) (MUKTSAR) only the finding finding may not be applicable to the other parts of the country because of social and cultural differences. 2. The sample sample was collected collected using using connivance-sa connivance-samplin mpling g techniques. techniques. As such result result may not give an exact representation of the population.
3. Shortage Shortage of time is also also reason for incomprehens incomprehensivenes iveness. s. 4. The views of the people people are biased biased therefore therefore it doesn’ doesn’tt reflect reflect true true picture. picture.
36
Q1) Which bike do you have? 47
37
Hero Honda Bajaj Any other
38 15
Hero honda Bajaj Any other
Q2) Which Model do you Have? Hero Honda Splender Passion Karizma
21 13 7
Bajaj CT 100 Discover Pulsar
7 12 11
38
Any other
6
Any other
8
25 20
Hero Honda
s n o s 15 r e P f 10 o o N 5
Splender Passion Karizma Any other
0 1 Model Name
14 12
Bajaj
s n 10 o s r 8 e P 6 f o o 4 N
CT 100 Discover Pulsar Any other
2 0
1 Model Nam Nam e
Q3) In which family Income level do you Fall?
100000-200000 200000-300000 300000-400000 above 400000
22 45 23 10
39
50 s n o s r e P f o o N
40
100000-200000
30
200000-300000
20
300000-400000
10
above 400000
0 1 Income Income level
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
40 30 No of 20 Persons
0-1 year
10
2-3 year
1-2 year
above 3 year
0 1 No of ye ars
Q5) For what purpose do you use your Motor Bike?
Office Purpose Personal purpose Joy Purpose Other
Hero Honda 9 13 19 6
Bajaj 4 15 16 3
41
20 s n o s r e P f o o N
15 Hero Honda
10
Bajaj
5 0 Office Purpose
Personal purpose
Joy Joy Purpose
Other
Purpose
Q6) How do you come to know about this Motor Bike?
Newspaper
Hero Honda 4
Bajaj 2
Television
23
16
Magazine
2
1
42
Friends & Relative
18
19
25 20 s n o s r e P f o o N
New spaper spaper
15
Television
10
Magzine Friends & Relative
5 0 Her o Honda
Bajaj
Name of Company
Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say
87% 5% 8%
43
Yes No Cant say
Q8) Do you have full knowledge about Bikes before buying? Hero Honda
Bajaj
Yes
25
23
No
22
15
44
30 25 s n 20 o s r e 15 p f o 10 o N 5
Yes No
0 Hero Honda
Bajaj
Company Com pany Name Name
Q9) Which Factor below Influence your decision?
Price Mileage Quality Resale Value
Hero Honda
Bajaj
72% 78% 65% 40%
78% 64% 48% 28%
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Status symbol
10%
7%
100% Price
80% 80 % s n o s r e P f o o N
Mileage
60% 60 %
Quality 40% 40 %
Resale Value
20% 20 %
Status symb s ymbol ol
0% Hero Honda
Bajaj
Company Name
Q10) How would you rate the following factors of Bikes with respect to different company?
Mileage Price
Hero Honda
Bajaj
74% 68%
72% 65%
46
Pick up Maintenance Look & Shape Brand Image
70% 58% 85% 53%
80% 62% 80% 55%
100% s n o s r e P f o o N
80% 80 %
Mileage
60% 60 %
Price
40% 40 %
Pick up
20% 20 %
Maintenance
0%
Look & Shape Hero Honda
Bajaj
Brande Image
Company Name
Q11) If new Bike with good features comes in, then would you like to change your bike?
Yes No
Hero Honda
Bajaj
19 17
21 14
47
Cant say
11
3
25 20 s n o 15 s r e P f 10 o o N 5
Hero Honda Bajaj
0 Yes
No
Cant say
Views
48
Conclusion
49
1. Most Most of the Pulsar Pulsar,, CBZ CBZ & Kari Karizm zmaa are are purcha purchase sed d by young young genera generati tion on 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 av erage of bikes than looks. 2. Hero Honda Honda is consid considered ered to be be most fuel-ef fuel-efficie ficient nt bike on on Indian Indian roads. roads. 3. Service Service & Spare Spare parts are available available througho throughout ut India India in local local markets markets also. also. 4. Whil Whilee buy buying ing a moto motorc rcy ycle, cle, econ econom omy y is the the main main cons consid ider erat atio ion n in form form of maintenance cost, fuel efficiency. efficiency. 5. Majority Majority of the respondent respondent had bought bought their their motorcycl motorcyclee more than than 3 years. years.
50
RECOMMENDATIONS 1.
Baja ajaj sh should in introdu oduce so some mo more mo models hav having mo more en engine gine power.
2.
Hero Honda should think abo about fue fuel eff efficiency in ca case of upp upper seg segment bikes.
3.
More service centers should be opened.
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4.
Maintenanc ance co cost an and th the av availability o off th the sp spare pa parts rts sh should uld al also be be giv given due importance.
5.
They hey al also int intrroduce some ome go good fi financ nancee/dis discount scheme emes for for student ents.
6.
The price should be economic.
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BIBLIOGRAPHY 1.
www.herohonda.com
2.
www.google.com 53
3.
www.bajaj.com
4.
www.twowheeler.com
5.
www.extrememachines.com
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QUESTIONNAIRE NAME: - …………………………… ……………………………………………… ………………… CONTACT NO ………………………………………. AGE:-
OCCUPA OCCUPATION:-
15-20
20-25
25.30
Above 30
Businessman
Employee
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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
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
Q8) Do you have full knowledge about Bikes before buying?
56
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 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)
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