Final Report Menakshi Azad

8/2/2019 Final Report Menakshi Azad

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By

Consumer Behavior in Auto Industry

(MEENAKSHI DEVI)

Under the Guidance

Of

Miss. Ruchika Singh Tomar(Asst. Professor)

SUBMITED

TO

GAUTAM BHUDDH TECHNICAL UNIVERSITYIN PARTIAL FULFILLMENT OF

THE REQUIREMENT FOR THE A WARD OF THE DEGREE OF MASTER OF BUSINESS

ADMINISTRATION (MBA)

THROUGHVIDYA BHAVAN COLLEGE FOR ENGINEERING TECHNOLOGY,

KANPUR

Session (2011-2012)

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DECLARATION

I hereby declare that Research report on Consumer Behavior in Auto Industry is a factual

report of my own project work undertaken towards partial fulfillment of the degree of management.

The facts and figures presented here is correct and true to best of knowledge & belief

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ACKNOWLEDGEMENT

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I am extremely grateful to Ms. Ruchika SinghTomar(Asst. Prof) for providing me the honor of carrying out

the project, which is helped me to put my learnings in to experience. Without her guidance I will not be able to

proceed with my project in the right direction. I would like to express my sincere regards to the staff of marketing,

whose help and guidance enables me to know what exactly consumers preference towards automobile industry

is all about.

I would also like to thank my family friends and relatives who have helped meant supported me in all possible

ways.

A Project report needs co-operation, guidance and experience of many more other than the persons whose name

appears on the cover, I would like to thank each and everyone will help me in our endeavor

Date: Meenakshi Devi (MBA 4th Sem)

Place 1041870022

TABLE OF COTENT

1. Declaration..i

2. Acknoledgementii

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CHAPTER (1)

1. .Executive Summary.. 5

2. Introduction to the problem. 6

3. Importance of Study 7-10

4. Rationale and Scope of Study.. 11

5. Review of Literature12

6. Objective of Study 13-14

7. Objective of two wheeler Industry .. 15-17

8. Research Methodology18-21

9. Data Analysis .. 22-56

CHAPTER (2)

2.1INDUSTRY Profile 57-6

2.2 Over Viwe Of History

CHAPTER(3):

1. Data Analysis 64

2. Conclusion 65-66

CHAPTER(4):

3. Appendix. 67-69

4. Bibliography..70-72

5. Refrences 73-75

EXECUTIVE SUMMARY

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The project deals with the Analysis of Behavior of people regarding bikes and its different features. The study

includes a survey of various mindsets affecting the liking and disliking of bikes. It is being done keeping in mind

how these factors will affect it. This will also help the public understand what is affecting their sale and purchase.

Introduction to the Problem Spread

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Talking about India, the bike market is confined mainly to male gender. So market depends on the perception of

males regarding different bikes.

On this problem a little work is done till now. Researcher could consult only

limited literature, Which is available in library i.e. Indian journal of

marketing, Business world & Business today, Business India. In spite of

these above mentioned journal & magazines, various website of Company's

are also consulted.

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1)Industry dynamics

The Indian auto components industry started out small in the 1940s supplying components to Hindustan Motors

and Premier Automobiles, two largest manufacturers of automobiles in India at that time. In the 1950s, the arrival

of Telco, Bajaj, Mahindra & Mahindra led to steadily increasing production. A closed market with high import

tariffs characterized the Indian auto component industry pre 1985. 1985-91 saw significant JVs in the Indian auto

component segment with Japanese manufacturers. After 1991, the delicensing of the sector led to global auto

manufacturers initiating assembly operations in India. This subsequently led to global Tier I players entering the

Indian auto space and the recognition of the potential in the Indian auto component segment.The Automotive

Component Manufactures Association (ACMA) classifies

the auto ancillary industry into the following product segments:

Engine and engine parts: Pistons, piston rings, piston pins, gaskets, carburetors, fuelinjection pumps,

etc.

Drive transmission and steering parts: Transmission gears, steering gears, crown wheels and pinions,

axles, wheels, etc.

Suspension and braking parts: Leaf springs, shock absorbers, brake assemblies, etc.

lectricals: Spark plugs, starter motors, generators, distributors, voltage regulators, flywheel magnetos,

ignition coils, etc.

quipment: Dashboard instruments, headlights, horns, wipers, etc.

Others: Fan belts, sheet metal parts, plastic mouldings, etc.

The major players in the auto ancillary industry can be classified between the ones

catering to the two wheeler industry and the four wheeler industry. MICO, Bharat

Forge, Sundaram Clayton, Sundaram Brakes, Rane Brakes, etc. mainly cater to

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commercial vehicles/tractors. There are many companies like Ucal Fuel, Motherson

Sumi, PRICOL, Subros, etc. which supply mainly to car industry. Companies like

Munjal Showa, Lakshmi Auto, Omax Auto, etc. cater to two-wheelers.

2) Spectral Performance:

The auto-ancillary was the best performing sector among the intermediate goods. Different segments of the sector

such as bearing, casting, fasteners, batteries and tyres have grown in a range of 25-40%. During the June quarter,

global automobile majors have announced major investment & domestic automobile companies such as Genera

Motors (GM) and Honda in fragmented auto-ancillary sector. Global majors are in a very critical condition; they

are loosing their market share because major automobile companies are being attracted by India, China, &

Taiwan. During first quarter of FY07, exports of automobile components grew around 25% compared to the

previous quarter on a YoY basis. And exports registered a growth at around Rs 2833 crore compared to ar Rs

3530 crore in the corresponding quarter of FY06. The main reason for boost in export is that the nature of the

customer base of overseas market has been undergoing

major change. Indian companies are transforming into principal suppliers for the Original Equipmen

Manufacturers (OEMs) from the after sales market or replacement market. During that quarter, production of

autocomponents increased by 15% YoY. And the result came out so far in this quarter is, Shanthi Gears,

witnessed a jump in net profits for the quarter ending in September, 2006. During the quarter, the company

witnessed a jump in NP at 43.45%, Sales for the quarter rose 31.90% compared with the corresponding quarter, a

year ago. The company has facilities for manufacturing patterns, centrifugal castings of phosphor bronze rings

ferrous

castings, aluminum castings, heat treatment, forging, fabrications and cutter manufacturing in-house which

constitute the major raw materials for gearboxes. Automotive Axles reported marginal improvement in the net

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profits for the quarter ended June 30, 2006. During the quarter, the company reported a 2.30% rise in profits and

Sales for the quarter rose 35.15% compared with the corresponding quarter, -

3)Future Outlook

Given the significant scale up of capacities by the domestic majors, and their improving global cost effectiveness,

the domestic auto ancillaries are well set to sustainable scale up their share of the global auto component pie. The

players are aggressively focusing on new client acquisition, inorganic growth in developed countries and cos

reduction measures on fronts like quality, delivery, design and management. Growth in the domestic market

would be driven by sustained growth in supplies to OEMs as well as acceleration in the demand from replacement

market. Moreover, cars, utility vehicles and CVs made in India are increasingly getting acceptance in foreign

markets, thus driving the demand further. Even Indian two-wheeler majors are targeting markets abroad

Simultaneously, foreign auto majors like Ford and Hyundai are making India its manufacturing base for several

models. Overall, the short to medium term outlook for the domestic auto component producers is positive

Automobile industry, which is a key driver of auto-component industry, is likely to grow at 12-17%. Along with

this some other key drivers including exports, outsourcing, and replacement market are slowing down

competitiveness in global markets in turn boosting the productivity of Indian auto components industry. Setting

up a new plant by existing companies and out-sourcing by the foreign vendors will result in domestic companies

benefiting, either by exporting from domestic facilities or setting up facilities in those locations. To meet the

emerging opportunities and challenges, Indian vendors are diversifying across products, processes, clients and

markets. Companies that have restricted themselves to

domestic business have seen modest growth and flat margins. A robust business outlook is expected to drive

strong revenue growth for the auto-component industry. Steel is a major raw material in manufacturing of parts.

Since mid January 2006, the domestic steel prices have been increasing. Similarly, other inputs like non-ferrous

metal, fuel, and transport costs have also been increasing. However, the auto ancillaries are not able to pass on the

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rise in costs, due to quality and price consciousness of auto majors. Fortunately, healthy rise in volumes, players

move up

the value chain, increasing exports together facilitated them to cushion the rise in costs, and enabled them to

maintain margins. Hindustan Composites is planning break lining and clutch facing unit near the proposed Tata

Motor plant at Singur in Hooghly district of West Bengal. The company has already started discussion with few

tier 1 component manufacturer of Tata Motors

in this regard The company is planning to tie up with an outfit which is likely to be entrusted with for the break

assembly of small car. Tata Motors is overhauling its outsourcing policy across all categories of cars. As part of

this policy, which is aimed at keeping costs under control, the company has taken a conscious decision to move

away from the multiple vendor models to a single vendor model. Bharat Forge Ltd. (BFL), signed a Memorandum

of Understanding (MoU) with the Government of Maharashtra to jointly develop a multi-product Special

Economic

Zone (SEZ) in Khed Taluka of Pune District. The SEZ is expected to attract investments of about Rs. 25,000

crores and generate 120,000 new employment opportunities. The project has received in-principle approval from

the Board of Approval, Ministry of Commerce, Government of India. The project would be implemented through

a Special PurposeS Vehicle (SPV) to be jointly promoted by BFL Kalyani Group and the Maharashtra Industrial

Development Corporation (MIDC) in which the two promoters would hold upto 74% and 26% of the equity

Scope of Study

To gauge the marketing behavior and analyze the data collected by using mathematical and statistical tools to

draw conclusions regarding preferences of the customers and the sales figures in the bike segment.

Due to geographical and time constraints the scope of the study has been limited to the Delhi and NCR region and

also to Bajaj bikes as the overall 2-wheeler segment is very large in India.

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REVIEW OF LITERATURE

Article 1Marketing research by Jayesh Shah & Saurabh Kishore for academic purposes

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OBJECTIVE: To Know The Popularity Of Brands Among Various Segments

Findings : Overall Findings Show That Hero Honda Is The Market Leader In All The Segments Followed By

Bajaj And Tvs. Few Other Popular Brands Include Royal Enfield Among Students And Yamaha Among Service

And Business Class People.

METHODOLOGY:based on Primary and Secondary data analysis

Suggestions: Indian market is still price sensitive and goes for better mileage when compared to looks. Also brand

awareness is a major factor affecting decision hence important to follow correct campaign trail before launch of a

new bike.

Objective of the research

To find out the consumer preference level and taste across Delhi and NCR region of different segments.

Gauge customer taste and preference for various brands of bikes on available parameters like mileage

style, comfort etc.

What factors guide consumer buying behavior for bikes?

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Which is the leading brand in the market and the relative position of the companies from consumers point

of view?

Identifying possible areas of improvement.

Product snapshot

HERO HONDA BAJAJ

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Overview of the Two Wheeler Industry The Bike Segment

The Indian two-wheeler industry has come long way since its humble beginning in 1948 when Bajaj Auto started

importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in favor of

motorcycles and gearless scooterettes that score higher on technology, fuel economy and aesthetic appeal, at the

expense of metal-bodied geared scooters and mopeds. These changes in customer preferences have had an impact

on fortunes of the players. The erstwhile leaders have either perished or have significantly lost market share

whereas new leaders have emerged

Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing

companies have all fuelled the growth of two-wheeler sales in the country. Besides, mounting traffic chaos and

limited parking space has also increased the demand for two-wheelers from households that can afford or actually

do own a car. India the second largest market for two wheelers in the world only after China. Furthermore, with

increasing women working population, changing social philosophy and broad-mindedness, the penetration of two-

wheelers is expected to further increase significantly.

The motorcycle has now become one most popular mode of transportation among the Indian middle class families

because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the people have

started preferring bikes instead of scooters and mopeds and today bikes form a major part of the Indian two

wheelers.

Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike

manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj India.

The motorcycle industry in India has witnessed a tremendous change in the 90s with the invention of 4 stroke

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engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to

make the motorcycle ride more comfortable, safe and user friendly and economical.

In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India:

Easy accessibility to cheap consumer loans

The increase in the average income of the family.

The reduction in duties and taxes.

Convenience with regards to commuting as compared to the public transport system.

Continuous innovations in technology making the bikes economic and fuel-efficient.

The first choice among youths and teenagers.

Key players in the Bike segment :

HERO HONDA MOTORS LTD.

BAJAJ AUTO LTD

TVS MOTOR COMPANY LTD.

KINETIC MOTOR COMPANY LTD.

YAMAHA MOTORS INDIA LTD.

LOHIA MOTORS LTD.

MAJESTIC MOTORS LTD.

ROYAL ENFIELD LTD.

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RESEARCH METHODOLOGY

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RESEARCH

Research in common place refers to a search for knowledge. Research is defined as

systematic and scientific search for pertinent information on specific topic or area of study

METHODOLOGY

Methodology is a plan of action for a research project and explains in detail how data

are collected analyzed and presented, so that they will provide meaning information.

RESEARCH DESIGN

A Research design is purely and simply the framework or plan for the guides the

collection and analysis of data It is the overall operational pattern or framework of the

project that stipulated the information to be collected, from which source and what

procedures. A Research design might be described as a series of advance decision that taken

together from a specific master plan or the model for the conduct of the investigation.

Descriptive research is used in this project.

DESCRIPTIVE RESEARCH

This type of research design is undertaken in many circumstances. When theresearcher is interested in knowing the characteristics of certain groups such as age, sex,

education level, Occupation or income etc. The Objective of such study is to answer the

Who, What, When, Where, and How of the subject under investigation, so in this project

study comes under descriptive research design.

SAMPLING DESIGN

Due to cost and time involved in collecting the data from all the respondents, it becomes

a compulsion to choose representation. Sampling design explains as under,19


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LOWEST HIGHEST

1 - LOWEST 0%

2 0%

3 10%

4 80%

5 - HIGHEST 10%

Some direct inferences

.Factors influencing the buying behavior

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Brand recall

Sales Forecasting

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1. Trend projection method:

This classical method of business forecasting is essentially concerned with the study of movements of variables

through time. It is used under the assumption that the factors responsible for past trends in the variable to be

projected will continue to play their part in the future in the same manner and to the same extent in magnitude and

direction.

There are three techniques of trend projection:

Graphical method

Least square method

Box-Jenkins method

Sales forecast of Pulsar for the year 2008 using Least Square method (which is same as simple linear

regression method):

YEAR SALES(S)in

Crores

T T2 ST

2000 865 1 1 8652001 1011.55 2 4 2023.12002 1374.94 3 9 4124.822003 1512.43 4 16 6049.722004 1647.86 5 25 8239.32005 1799.6 6 36 10797.6TOTAL 8211.38 21 91 32099.54

22
http://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.htmlhttp://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.htmlhttp://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.htmlhttp://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.htmlhttp://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.html


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1.Trend Projection Method:

The straight line trend equation used for projecting future sales is:

S = a + bT

Where, S = annual sales

T = time in years

a, b are constants

The constants a and b are estimated by solving the following two equations:

S = na + bT

ST = aT + bT2

Here, n = 6

S = 8211.38 crores

ST = 32099.54 crores

T = 21

T2

= 91

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On solving the above two equations we get,

a = 696.63 and b = 191.98

RMSE Calculation:

On the basis of the calculated values of a and b, the predicted sales value for the years 2006,

2007 and 2008 will be:

Sp2006 = 696.63 + (191.98*7) = 2040.49 crore

Sp2007 = 696.63 + (191.98*8) = 2232.47 crore

Sp2008 = 696.63 + (191.98*9) = 2424.45 crore

And, the actual sales values for the above three years are:

Sa2006 = 2072.00 crore

Sa2007 = 2487.00 crore

Sa2008 = 3497.00 crore

RMSE = {(3497.00 2424.45)2 + (2487.00 2232.47) 2+ (2072.00 2040.49)2}1/2

(3) 1/2

= 636.69

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Sales for 2009 and 2010 can also be forecasted:

S2009 = 696.63 + (191.98*10) = 2616.43 crore

S2010 = 696.63 + (191.98*11) = 2808.41 crore

3. Exponential smoothing:

It is a popular technique for short-run forecasting. It uses a weighted average of past data as the basis for a

forecast. It gives higher weight to most recent data and least weight to observations of distant past. The weights

for past data are chosen in accordance with their degree of influence on the future. The formula for exponential

smoothing is-

ST+1 = AyT + (1-a) St

Where, St+1 = exponentially smoothed forecast

Yt = actual sales of previous year

St = forecasted sales of last year

Now, we apply this method on the available sales data of AWL considering a six period average as the initial

forecast for the year 2006:

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S2006 = (865.00+1011.55+1374.94+1512.43+1647.86+1799.60)/6

= 1368.56

We take the smoothing constant, a = 0.4

Therefore, S2007 = (0.4*2072) + (0.6*1368.56)

= 1649.93

S2008 = (0.4*2487) + (0.6*1509.25)

= 1984.75

RMSE Calculation:

RMSE = {(2072.00 1368.56)2+ (2487.00 1649.93)2 + (3497 1984.75)2 }1/2

(3 )1/2

= 1077.406

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Sales for the year 2009 can also be predicted as:

S2009 = (0.4*3497.00) + (0.6*1984.75) = 2589.65 cr

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Calculation of Correlation:

Correlation Coefficient = 3359.71/(6-1)*(364.848*1.871)

=0.984

This shows that there is a high degree of correlation between the time period and sales i.e more the time period

more are the sales. This means that sales are highly dependent on the time period positively.

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Calculation of Herfindahl Index

Market shares of various brands in premium segment i.e. 150-220 c.c.

Pulsar : 41%

Hero Honda: 27%

TVS: 25%

Royal Enfield: 5%

Yamaha: 2%

Herfindahl Index: (41^2)+(27^2)+(25^2)+(5^2)+(2^2)

=3064

Since the value of H (Herfindahl index) is high, we can say that the concentration ratio is also high in the segment

of premium bikes.

PRICE REGRESSION PRICE ANALYSIS

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bike vs price in india

0102030

405060708090

100

Spirit By

k

Boxe

r

Pulsa

r

Disc

over

Pass

ionPlus

Ambit

ion

Activ

a

ZXZoo

m

GF-170

Pulse

Ener

gy

Free

dom

Beam

er

Bulle

t

Max

100

Fiero

Crux

Liber

o

bike type

b

ike

price

Series1

bike price distribution in india

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

price range

Types

ofbikes

Series1

The maximum number of bikes lie in the range between 40-50 thousands which is also a usp of pulsar as it

is almost near to the given range and provides a better value for money.

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0

10

20

30

40

50

60

70

80

90

Price

1

Bikes

veiw of bikes in india with priSpirit

M80

Saffire

Chetak

Chetak

BykByk

Caliber

Caliber

Boxer

Boxer

Boxer

Pulsar 150

Pulsar

Pulsar

Pulsar

Eliminator

Wind 125

Wind 125

Discover

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INDUSTURY PROFILE

TWO WHEELER INDUSTRIES

In two wheeler markets India has the world second largest Market (after China). In India every month sold nearly

3-lakh motor cycle.

The two- wheeler industry is among the few that have

Managed to face the industrial slow down. The industry's impressive growth of over 10% for four year till 2006-

07. But in 2007-08 there was a drop in agricultural output. But a boost comes in the 6th Pay commission

recommendation. After year of cursing along at fairly relaxed pace, two-wheeler industry has finally stepped on

the accelerator & swayed its way timely in to the first lane. All the major players in the market including

BAJAJ AUTO, HERO HONDA,TVS ,SUZUKI, ESCORT YAMAHA, KINETIC & LML, work over time to

grab slice of two-wheeler pie as possible, the market is suddenly roaring for action.Most of them like BAJAJ

AUTO, HERO HONDA, TVS,

LML, KINETIC, YAMAHA are adding of their existing range by launching

new state of art product to meet competition head on.

COMPANY ANALYSED FOR REPORT: BAJAJ AUTO LTD.

PROFILE OF THE ORGANIZATION

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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 Akurdi and Chakan (Pune), Waluj (near

Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles and the

auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

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 and the company worth more than

46 billion as of January 2009.

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 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 financia

year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

Spin-offs and Acquisitions

The demerger of Bajaj Auto Ltd into three separate corporate entitiesBajaj Finserv Ltd (BFL), Bajaj Auto Ltd

(BAL), and Bajaj Holdings and Investment Ltd (BHIL)was completed with the shares listing on May 26, 2008.

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In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM

Sports motorcycles AG). The two companies have signed a cooperation deal, by which KTM will provide the

know-how for joint development of the water-cooled four-stroke 125 and 250 cc engines, and Bajaj will take over

the distribution of KTM products in India and some other Southeast Asian nations.Bajaj said it is open to taking a

majority stake in KTM and is also looking at other takeover opportunities. On the 8th of January 2008, Managing

Director Rajiv Bajaj confirmed the collaboration and announced his intention to gradually increase Bajaj's stake in

KTM to 25%.

Products :

Some of the models that Bajaj makes (or has made including prototypes) are:

Scooters

Bajaj Kristal DTSi

Cars

Bajaj Lite concept

Bajaj ULC (ultra-low cost)- the Tata Nano competitor.

Motorcycles

Bajaj Platina 100cc

Bajaj Platina 125 DTS-Si

Bajaj Discover 135 DTS-i

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Bajaj XCD 125 DTS-Si

Bajaj XCD 135 DTS-Si

Bajaj Pulsar 150 DTSi

Bajaj Pulsar 180 DTSi

Bajaj Pulsar 220 DTS-i

Bajaj Avenger 200 DTS-i

Competitors

HERO HONDA

Hero Honda Motors Ltd. is a popular motorcycle company in India. This company, started in 1984, was a

successful joint venture between Hero Cycles and Honda Motor Company of Japan.

Since the commencement of the company, Hero Honda has manufactured and sold more than 15 million

motorcycles. The company has established a niche in the competitive Indian and international market for

manufacturing low maintenance and high fuel efficient motorcycles. Its the no. 1 two wheeler mfg. in the world.

ROYAL ENFIELD

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When it comes to Indian motorcycle, Royal Enfield hits the mind of every Indian motorcycle lovers because it is

one of the premier bike companies in India. This company was founded by the son of George Townsend in 1851

and was further taken over by Albert Edie and R.W. Smith in 1891.

T.V.S MOTORS

TVS Motor Company Ltd and Yamaha Motor India Ltd also have carved a niche in the Indian motorcycle market.

TVS Motor Company, established by T. V. Sundaram Iyengar in 1911, is believed to be the third largest

manufacturer of two-wheeler in India

TVS came up with the first two-seater moped in 1980 that eventually defined the dominion of persona

transportation in India. This company entered into a joint venture with Suzuki Motor Corporation of Japan in

1982. This collaboration was the first company to introduce a 100-cc motorcycle in the markets of India

YAMAHA

Yamaha Motor India Ltd. is continuously making efforts to break down the competitive two wheeler market in

India and win the battle with its business strategies. The business strategies and principles of this company is

customer fulfillment through quality service, research and development for introducing high end motorcycles and

optimization of the working system

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S.W.O.T ANALYSIS-

STRENGTHS

Product design and development

capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across

all categories.

High export to domestic sales ratio.

Great financial support network

(For financing the automobile)

High economies of scale.

High economies of scope.

Highly experienced management

WEAKNESSES

Hasn't employed the excess cash for

long.

Still has no established brand to

match Hero Honda's Splendor in

commuter segment.

Not a global player in spite of huge

volumes.

Not a globally recognizable brand

(unlike the JV partner Kawasaki)

OPPORTUNITIES

Double-digit growth in two-

wheeler market.

Untapped market above 180 cc in

motorcycles.

More maturity and movement

towards higher-end motorcycles.

The growing gearless trendy

THREATS

The competition catches-up any

new innovation in no time.

Threat of cheap imported

motorcycles from China.

Margins getting squeezed from both

the directions (Price as well as

Cost)

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scooters and scooterette market.

Growing world demand for entry-

level motorcycles especially in

emerging markets.

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DATA Analysis

Various techniques have to be applied on the gathered data to actually make sense of it.

Some of these which can be used are as follows :

Sampling techniques

Primary Data Source Collection and Analysis

Mean, Mode, Median

Graphical methods

Histograms, Bar charts, Pie charts etc.

Various analysis of Frequencies

Standard Deviation

Thus above methods listed are the most contemporary and useful in sensible comprehension of data.

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CONCLUSION

CONCLUSION

The bike was launched in the year 2000, and for it to capture the largest share of market and beat existing

and flourishing brands like Hero Honda is a great achievement.

Also the root mean square error value in the least square method is less than that in the

exponential forecasting method.

Thus, the sales predicted by least square method will be a better estimate of the future sales than that

predicted by exponential forecasting method.

The maximum buyers are of the age group 24-30 , hence it can be interpreted as being popular in college

going youth.

A majority group belonging to the pulsar kind of bikes is more from the income group category 3-5 & 5-

10 lakh group The maximum number of bikes lie in the range between 40-50 thousands which is also a

usp of pulsar as it is almost near to the given range and provides a better value for money.

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The youth were more inclined towards the adventure part of bikes ,looks, consult friends, use television

and internet and prefer style and value the most whereas for the elders go for household and office,

mileage, family, print, value and brand before making a bike purchase.

Annual incomes have a direct correlation with increasing demands of consumer also. Pulsar overall

enjoys a favorable demand among all the categories and consist of maximum alluring qualities amongst

the tested ones.

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APPENDIX

Q.1. How many brand of two-wheeler do you know?

MO`BIKE SCOOTER

Hero Honda LML

Bajaj Auto Honda

Suzuki Bajaj Auto

TVS Kinetic Engineering

Enfield

Yahama

Cosmo Blaster

LML

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

(a) Motor Bike (b) Scooter

(c) Moped / Scotties

Q.3. which attributes do you like most in your two-wheeler? Rates the

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Various factors you consider most ? (1-6 ,1 is most important )

(1.) Luggage space (2.) Fuel Efficiency

(3.) Pick up (4.) Resale value

(5.) Driving comfort (6.) Out look

Q.4. what is your source of finance?

(a) Bank Loan (b) Finance Company

(c) Self financing (d) Any Other

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

bike ?

(a) Print media (b) Electronic media

(c) Exhibition (d) Trade shows

(e) Brand image

Q.6 Which brand right now you are having ?

(a) Hero Honda (b) Bajaj Auto

(c) TVS (d) Suzuki

(e) Yamaha (f) LML

Q.7. Should company go for innovation in context to development of new

bike ?

(a) Yes

(b) No

Q.8. While going for the development of new bike which point the company

should keep in mind

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(a) Acceptability of customer

(b) Scale of economic

(c) Comfort (d) Design

(e) Others

Q .9. According to you which company`s model you like most and

why-

(A) Bajaj Caliber (b) TVS Victor

(c) Honda Activa (d) Yahama Libero

(e) Hero Honda Ambition

Q.10. Please give suggestions to improve your present brand.

__________________________________________________

__________________________________________________

__________________________________________________

_________________________________________________

BIBLIOGRAPHY:

Kotler, Philip 2002,PHI(I)P.ltd., Marketing management

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Kothari, C.R.2001,Himayalayan Publications, Research

Methodology

Magazines and News papers

a)Auto car India

b)Business Today

c)Business World

d)Business India

e)Economic Times

f)The Hindu

g)India Today

Websites :

www.google.com

www.wiki.com

www.yahoo.com

www.allprojectreports.com

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http://www.google.com/http://www.yahoo.com/http://www.google.com/http://www.yahoo.com/


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REFRENCE

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REFERENCES

1. EBSCO HOST(database)

2. PROWESS(database)

3. INDIA STATS(database)

4. Peterson, Lewis and Jain: Managerial Economics

5. www.bajajauto.com

6. http://auto.indiamart.com/motorcycles/bajaj-pulsar

7. http://www.fadaweb.com/two_wheeler_industry.htm

8. auto.indiamart.com/motorcycles

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http://www.bajajauto.com/http://auto.indiamart.com/motorcycles/bajaj-pulsarhttp://www.fadaweb.com/two_wheeler_industry.htmhttp://www.bajajauto.com/http://auto.indiamart.com/motorcycles/bajaj-pulsarhttp://www.fadaweb.com/two_wheeler_industry.htm


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9. www.iloveindia.com/bikes/index.html

10.www.infibeam.com/bikes/make/herohonda.html

11.bikes.whereincity.com

12.www.bikesalesindia.com

13.www.infibeam.com/bikes/make/bajaj.html

14.www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.html

15.www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html

16.FOR VEIWING THE COLLECTEDPRIMARY DATA VISIT

BIBLIOGRAPHY:

Kotler, Philip 2002,PHI(I)P.ltd., Marketing management

Kothari, C.R.2001,Himayalayan Publications, Research

50
http://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html


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Methodology

Magazines and News papers

a)Auto car India

b)Business Today

c)Business World

d)Business India

e)Economic Times

f)The Hindu

g)India Today

Websites :

www.google.com

www.wiki.com

www.yahoo.com

www.allprojectreports.com

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http://www.google.com/http://www.yahoo.com/http://www.google.com/http://www.yahoo.com/


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Final Report Menakshi Azad

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