MINOR PROJECT P ROJECT REPORT SUBMITTED TOWARDS TOWARDS THE PARTIAL FULLFILLEMENT OF
BACHELOR OF BUSINESS ADMINISTRATION
MINOR PROJECT REPORT ON
Comparative Study on BAJAJ v/s HERO HONDA Batch 2011-2014
Submitted By:
PROJECT GUIDE:
CHANDAN KOHLI
RITIKA KAUR
07120601711
(Assistant professor)
Trinity Institute of Professional Studies Affiliated to Guru Gobind Singh Indraprastha University, New Delhi
CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project work Comparative Study on BAJAJ v/s HERO HONDA made by CHANDAN KOHLI is an authentic work carried out by her guidance and supervision of Project guide Name RITIKA KAUR.
The project report submitted has been found satisfactor y for the partial fulfillment of the degree of Bachelor of Business Administration.
Project Supervisor: RITIKA KAUR
Signature
Name: CHANDAN KOHLI
ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise. They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help. I deem in my duty to record my gratitude towards the Project supervisor RITIKA KAUR who devoted her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project.
Signature:
Name of student: CHANDAN KOHLI Enroll. No: 07120601711 Course: BBA(GEN) Class/sem/shift: IInd Yr/ IIIrd SEM/ Ist SHIFT
DECLARATION
I hereby declare that the following document Project report titled
is an authentic work done
by me for the partial fulfilment of Bachelors of Business Administration degree program.
I hereby certify that all the Endeavour put in the fulfilment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere.
SIGNATURE:
Name of student: CHANDAN KOHLI Enroll. No: 07120601711 Course: BBA(GEN) Class/sem/shift: IInd Yr/ IIIrd SEM/ Ist SHIFT
INTRODUCTION This project is an attempt to give draw out a comparison between Bajaj Auto Ltd & Hero Honda .It aims to know perception of consumers regarding bikes, & factors influencing their choice.
It throws light on the following :-
1. In 1st Chapter you will find the Objectives, Research Methodology and Limitations of the study.
2. In 2nd chapter you will find an overview of the company profile, history, marketing strategies, & SWOT analysis of Bajaj & Hero Honda.
3. In 3rd Chapter you will find analysis & interpretations on the project report.
4. In 4th Chapter you will find conclusion and suggestion on the project.5.In the end you will find the various sources I referred for gathering information.
Introduction to Hero Honda
Hero Motocorp Ltd formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.
In 2010, When Honda decided to move out of the joint venture. Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4th June 2012, Hero Motocorp approved a proposal to merge the investment arm of its parent-Hero Investment Pvt. Ltd. into the automaker .The decision comes after 18 months of its split from Honda Motor.
Introduction to BAJAJ
Bajaj Auto Limited is an Indian motorized vehicle- producing company. Bajaj Auto is a part of Bajaj Group. It’s founded by Jamnalal Bajaj at Rajasthan in the 1930s. It is based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre ahead. Bajaj Auto makes and exports automobiles, scooters, motorcycles and the auto rickshaw.
Bajaj Auto is the world's third-largest manufacturer of motorcycles and second-largest in India.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946. It features at 1639 in Forbes 2011 list.
Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two-wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four 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.
Bajaj Auto came into existence on 29 November 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 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 near 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 one million vehicles in a year.
According to the authors of Globality : Competing with Everyone from Everywhere for Everything, Bajaj has grown operations in 50 countries by creating a line of value-for -money bikes targeted to the different preferences of entry-level buyers.
HISTORY OF BAJAJ
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.
The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest twoand three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture .His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhi ji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities .The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965.Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global
market. He is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.
TIMELINE OF RELEASES & ACHIEVMENTS of BAJAJ
2009 April Bajaj Pulsar 150 & 180 upgrade launched January Bajaj XCD 135 DTS-Si launched
2008 September Bajaj Platina 125 DTS-Si launched August XCD 125 DTS-Si is largest selling 125cc motorcycle July Bajaj Discover 135 DTS-i Upgrade Launched. June Pulsar 220 bags IMOTY award
2007 December RE GDi auto rickshaw launched September XCD 125 DTS-Si launched August DTS-Si engine launched July Revamping of Organisational structure June Pulsar 220 DTS-Fi launched April Bajaj Auto Commissions New Plant at Pantnagar , Uttarakhand February 200 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 .February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.
2001 November Bajaj Auto launches its latest offering in the premiu m 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 12months.
1998 Production commences at Chakan plant. 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 Auto rickshaw are introduced.
1995 November 29 Bajaj Auto is 50.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 5The 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 Auto rickshaw 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 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.
1959 Bajaj Auto obtains licence from the Government of India to manufacture two- and threewheelers.
1948 Sales in India commence by importing two- and three-wheelers.
1945 November 29 Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited.
COMPANY HISTORY
―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. 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 .
Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing16000 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.
The Wall Street Journal reported that Hero Honda Motors Limited's one of biggest founders will buy Honda Motor Co., Ltd.'s 26% stake in the Company for about INR38.42 billion ($853 million), less than half the current market price. The offer from Hero Investments Pvt. Ltd. comes three months after Hero Group and Honda decided to part ways as they seek to focus on their individual aspirations for the two-wheeler market after China. Hero Investments proposed to buy Honda's 51.92 million shares at INR739.97 ($16.44) apiece on or around March 22.
TIMELINE OF RELEASES & ACHIEVMENTS of HERO HONDA
1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed
1984 Hero Honda Motors Ltd. Incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced500,000th motorcycle produced
1994 New motorcycle model - "Splendor" introduced
1997 New motorcycle model - "Street" introduced
1998 2,000,000th motorcycle produced
2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certifiedISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single two-wheeler model ―Hero Honda Passport Programme" - CRM Programme launched 2001 New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced
2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7million sales mark Splendor has
emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002)New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model – "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introduced Splendor - World's largest selling motorcycle crossed the 5million mark New motorcycle model - "CBZ*" introduced
2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced
2006 Hero Honda is the World No. 1 for the 5th year in a row
2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.
2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.
2009—New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited edition of Hero Honda motorcycle Hunk launched 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched. New licensing arrangement signed between Hero and Honda. In August Hero and Honda parted company, thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike Named Hero "Impulse".
2012- New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike are launched.
Chapter 2
Research Objectives of 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.
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.
Research Process 1)Formulating the Research Problem: The first step in the process of research is formulation of the research problem. The Researcher must decide his area of interest and decided the problem based on his knowledge and expertise regarding the subject matter. Initially problem can be stated in general way and then the researcher should check the feasibility regarding the information, time, cost, and also the tentative solution regarding the problem. Followed by this the researcher should give the problem statement. Two steps are involved in formulating research problem.
i. Understand the problem thoroughly ii. Rephrasing the same into meaning terms One way to formulate a problem is to review previous researchers and discuss it with own
colleagues or experts in that particular area.
2)Extensive Literature Survey Once the problem is formulated a brief summary of it should be written down. At this junction researcher should undertake extensive literature survey connected with the problem. He can review journals, government reports, books, etc. depending his area of research. He must also view similar studies done previously as they can act as a guideline to the researcher for his research.
3) Development of writing hypothesis Working hypothesis is a tentative solution given by the researcher in order to channelize his researcher in order to channelize his research project. Role of hypothesis is to keep the researcher on the right track. The researcher can discuss about the hypothesis with his coworkers and experts in this field. He also needs to check the availability of the data before formulating the hypothesis.
4) Preparation of the Research design Research design is a plan made by the researcher to conduct the further activities in a logical manner. Formulation of a research design facilitates the research project. Research design like experimental design, factorial design, Latin square design, etc. can be used by the researcher depending upon the research problem. Preparation of research design involves considering the following things
a. Means of obtaining information b. Analysis of information c. Availability of time d. Cost factor e. Logical procedure
5)Determining the sample design All the items under consideration in any field of inquiry constitute a universal/ population. It is not possible to get information from the whole population and therefore we select few items from the population. The items so selected constitute what is known as sample. The researcher must decide the way of selecting a sample from the population. Various types of sample design like sampling, snowball sampling, etc. can be used by the researcher depending upon the problem.
6) Collection of data Two techniques of data collection are used by a researcher. Primary data includes Observations, survey, questionnaires, interview, etc. Secondary data includes internet, journals, reports, books, etc. Researcher has to decide which of these he is going to use for the collection of data.
7) Execution of the project This is the most important step in the research process. Researcher has to see whether the project is executed in a systematic manner and on right time.
Occasional field visits should be made by researchers to ensure that everything is going according to the plans. If required training may be given to the assistance who will help the researchers in the execution of the project.
8) Analysis of the data After the data is collected researchers has to analyse it for its further use. Analysis includes organizing, coding, editing, tabulation for diagrammatic representation. A researcher can use various statistical tools and computer for the analysis purpose.
9)Hypothesis Testing
After the analysis of data the researchers are in the position to test the hypothesis.May be a statistical test like t-test, f -test, cai-square are used by the researchers for testing hypothesis.
10) Generalization and interpretation If hypothesis is tested it may be possible for the researcher to give generalization/generalized the findings. On the other hand if this is no hypothesis the researchers have to explain the findings and this is known as interpretation.
11) Preparation of the report Report writing is divided into three parts.
a. Preliminary pages b. Main text c. End matter
Research Design
Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below.
1.Descriptive It includes surveys and fact finding enquires. Main aim is to describe the state of affair as it is exists at present. The researchers have no control over variable. They can report what has happened or what is happening. It is also known as Ex Post Facto. 2. Analytical In this research, researcher has to use facts or information already available and analysed to make a critical evaluation. 3.Applied Aims at finding a solution for immediate problem faced. It applies theories and models already developed to the actual solution of the problem. Aim is not to develop theories but to test the theories in actual situation. 4. Fundamental It is a formal and systematic process which aims to develop theories or model. All-important variables are identified in fundamental research. It involves selecting appropriate sample so that generalization can be done. 5. Quantitative It is based on the measurement of quantity or amount. It can be applied to these Concepts which can be expressed in terms of quantity. 6. Qualitative It is concerned with the qualitative aspects. 7. Conceptual It is related to some abstract ideas or theories. Generally used by philosophers or thinkers to develop new concepts.
Data Collection
SOURCES OF DATA
EXTERNAL
PRIMARY
INTERNAL
SECONDARY
SOURCES OF DATA COLLECTION
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.A set of question s was put together in the form of questionnaire with. Question. The method of
sampling was the random method as it is unbiased.
B. Secondary Data:
Secondary data is when the investigator does not collect data originally for the research enquiry but uses data already collected and available in published or unpublished from, data. There is a large amount of data already been collected by others, although it may not necessarily have been analysed or published. Locating these sources and retrieving the information is a good starting point in any data collection effort. The advantage of using existing data is that collections inexpensive. However, it is sometimes difficult to gain access to the records or reports required, and the data may not always be complete and precise enough, or too disorganized. Use of secondary data in a research enquiry saves time, finance and labour. However, some people doubt the accuracy of secondary data. If reliable and suitable secondary data is available, there is no harm in using secondary data for any research enquiry. Most research requires the collection of primary data, and this is what students concentrate on. Unfortunately, many dissertations do not include secondary data in their findings section although it is perfectly acceptable to do so, providing it has been analysed. It is always a good idea to use data collected by someone else if it exists ± it may be on a much larger scale and could contribute to the findings considerably. The sources of secondary data can be classified as
A. Internal Sources: 1. Accounting resources 2. Sales Force Report 3. Financial data 4. Transport data 5. Storage data 6. Internal Experts 7. Miscellaneous Reports
B. External Sources:
1. Demographic data 2. Competitors - company information i. Company websites ii. Press Releases iii. White papers iv. Presentations
3. Government Publications:
i. Key Sources ii. Semi-government publications iii. Publications of universities and research institutions iv. Publications of commercial and financial institutions v. Reports of committees and commissions vi. Newspapers and periodicals vii. Publications of international bodies 4. Non-government publications 5. Syndicated Services 6. International Organizations 7. Trade Associations 8. Commercial Services 9. Other external media
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.
SAMPLE Design It gives the target population that will be sampled. This research was carried in New Delhi & NCR. These were 20 respondents.
RANDOM SAMPLING: - a random sample gives every unit of population a known and non-
probability of being selected. Since random sampling implies equal probability to every unit in the population; it is necessary that the selection of the sample must be free from human judgment.
SYSTEMATIC SAMPLING: - In this method first a sampling fraction is calculated
As N/n where N is total no. of units in the population and ―n‖ is the size of sample..
STRATIFIED RANDOM SAMPLING: - A stratified random sampling is divided into
mutually exclusive and mutually exhaustive strata or sub group and then a simple random sample is selected with in each of the strata or sub group.
CLUSTER SAMPLING: - cluster sampling implies that instead of selecting individual units
from the population entire groups or clusters are selected random.
QUOTA SAMPLING: - quota sampling involves the fixation of certain quotas, which are to
be fulfilled by the interviewers, since quota sampling is not based on random selection it is not possible to calculate estimates of standard errors for the sample result.
