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PROJECT REPORT OF RESEARCHMETHODOLOGY ON

COMPARATIVE STUDY

OF

V/S

SUBMITED TO SUBMITED BY

Prof. SANJEEV KUMAR ANKIT RANARoll No. 7116223117

MBA 2ND

Semester

RIMT - IMCT (REGIONAL INSTITUTE OF

MANAGEMENT AND COMPUTER TECHNOLOGY)

MANDI GOBINDGARH

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CERTIFICATE

This is to certify that Mr. Ankit Rana has completed his project

report title Comparative Study of Bajaj V/S Hero Honda under my

supervision. To the best of my knowledge and belief this is his original work

and this, wholly or partially, has not been submitted for any degree of this or

any other University.

Date: Mr. Rajesh Chawla( Project Guide )

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Vs.

http://www.herohonda.com/http://www.bajajauto.com/1024/index.asp

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ACKNOWLEDGEMENT

The research on Comparative Study between Bajaj and Hero

Honda has been given to me as part of the curriculum in 2-Years Bachelor

Degree in Business Administration.

I have tried my best to present this information as clearly as possible

using basic terms that I hope will be comprehended by the widest spectrum

of researchers, analysts and students for further studies.

I have completed this study under the able guidance and supervision

of Mr. Rajesh ChawlaI will be failed in my duty if I do not acknowledge

the esteemed scholarly guidance, assistance and knowledge. I have received

from them towards fruitful and timely completion of this work.

Mere acknowledgement may not redeem the debt I owe to my parents for

their direct/indirect support during the entire course of this project.

I also thankful to my friend who helped me a lot in the completion of

this project.

ANKIT RANA

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INDEXSr No.

1.

2.

Particulars

HISTORY OF BAJAJ- Profile- Key Person- Bajaj Intro- Company History- Timeline of new releases

Page no

7

3. HISTORY OF HERO HONDA- Board of Directors- Company Profile

14

4.RESEARCH METHODOLOGY

- Data Source- Research Approach- Sampling unit

- Data Completion and Analysis- Scope

23

5.OBJECTIVE OF THE STUDY

6.ANALYSIS AND INTERPRETATION

25

7. RECOMMENDATION 27

8. CONCLUSION 39

9.LIMITATION OF RESEARCH STUDY

41

10. BIBLIOGRAPHY 43

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11. ANNEXURE 45

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INTRODUCTION

Peter Drucker called the automobile industry as "the industry of industries". During the

last few years, the production and management systems have been revolutionized in the

automobile industry (Karmokolias, 1990). One of the major changes in the industry has

been the opening up and growth of several emerging markets. In 1991, the Government

of India embarked on an ambitious structural adjustment programme aimed at economic

liberalization, based on the pillars of Delicensing, Decontrol, Deregulation and

Devaluation. Post-liberalization, the Government of India's new automobile policy

announced in June 1993 contained measures, such as delicensing, automatic approval for

foreign holding of 51% in Indian companies, abolition of phased manufacturing

programme, reduction of excise duty to 40% and import duties of CKD to 50% and of

CBU to 110%, and commitment to indigenization schedules. The Indian automotive

industry has been on a high growth path in the domestic market, given strong demand-

push factors coupled with an encouraging policy environment. Changing lifestyles,

increasing disposable income, deterioration of public transport and accelerated

urbanisation is leading to a growth in demand for passenger vehicles and 2-wheelers.

Improving rural income on account of the rise in the agri-commodity prices and near

normal monsoons together can boost the demand for tractors. Domestic demands for cars

are expected to grow at a double-digit rate for the next three to four years. The brilliant

performance of the automotive sector is attributed to better performance of the economy

and high all round growth leading to robust GDP growth, improved infrastructure

development, excise duty reduction on passenger vehicles, improved financing of second

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hand vehicles, availability of finance in rural and semi-urban areas and the emergence of

India as a manufacturing hub for the automotive industry. Investment upto Rs 30,000

crore has been planned for the Sector, by leading Indian and global players, by 2010.

The Indian automotive industry consists of five segments: commercial vehicles; multi-

utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With

5,822,963 units sold in the domestic market and 453,591 units exported during the first

nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth

of 17% over the corresponding previous. The two-wheeler sales have witnessed a

spectacular growth trend since the mid nineties.The two-wheeler industry (henceforth

TWI) in India has been in existence since 1955. It consists of three segments viz.,

scooters, motorcycles, and mopeds. The increase in sales volume of this industry is proof

of its high growth. In 1971, sales were around 0.1 million units per annum. But by 1998,

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this figure had risen to 3 million units per annum. Similarly, capacities of production

have also increased from about 0.2 million units of annual capacity in the seventies to

more than 4 million units in the late nineties. The two-wheeler industry in India has to a

great extent been shaped by the evolution of the industrial policy of the country.

Regulatory policies like FERA and MRTP caused the growth of some segments in the

industry like motorcycles to stagnate. These were later able to grow (both in terms of

overall sales volumes and number of players) once foreign investments were allowed in

1981. The reforms in the eighties like broadbanding caused the entry of several new

firms and products which caused the existing technologically outdated products to lose

sales volume and/or exit the market. Finally, with liberalization in the nineties, the

industry witnessed a proliferation in brands.

The technological backwardness of the Indian two-wheeler industry was one of the

reasons for the initiation of reforms in 1981. Foreign collaborations were allowed for all

two-wheelers up to an engine capacity of 100 cc. This prompted a spate of new entries

into the industry the majority of which entered the motorcycle segment, bringing with

them new technology that resulted in more efficient production processes and products.

The variety in products available also improved after broadbanding was allowed in the

industry in 1985 as a part of NEP. This, coupled with the announcement of the MES of

production for the two wheeler industry, gave firms the flexibility to choose an optimal

product and capacity mix which could better incorporate market demand into their

production strategy and thereby improve their capacity utilization and efficiency. These

reforms had two major effects on the industry: First, licensed capacities went up to 1.1

million units per annum overshooting the 0.675 million units per annum target set in the

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Sixth Plan. Second, several existing but weaker players died out giving way to new

entrants and superior products.

In a consumer durables industry in which there is a proliferation of brands, we expect the

long run competitive structure at the level of the industry to be oligopolistic. This is due

to the fact that in order to survive firms must introduce new brands which might improve

capacity utilization even as this induces brand competition. This, in turn, will cause only

a few large firms in the industry to survive indicating that in the long-run, a brand

proliferated consumer durable industry will tend towards oligopoly. We expect a general

downward stickiness in prices and resultant increase of volatility in non-price variables

such as sales volumes, market-shares etc. Convergence is likely to be absolute at the

level of the segment and conditional at the level of the industry. Competitive strategies

(which include product development and other strategies aimed at innovation and

technological change) are more inter-dependent at the level of the market-segment than

at the level of the industry. This is due to the fact that within each segment the products

are, to a large extent, similar. Hence we can expect convergence to be absolute at the

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level of the segment and conditional at the level of the industry.Two-wheeler sales

continue to be buoyant with a 19% growth joy, driven by its motorcycle segment that has

posted a rise of 24%. Bajaj Autos market share in the domestic motorcycle market has

improved from 23% in FY03 to 30% in FY06. Hero Honda, the largest motorcycle

manufacturer in India, with a domestic market share of 50% in FY06, was down from

52% in FY05, while the market share of TVS Motors is 18%. The Indian two-wheeler

industry is entering a strong secular growth phase, driven by increasing affordability,

easy availability of finance, and accelerating exports. The next phase of earnings growth

will be driven by unit volume growth, while the four-wheeler passenger car industry is

driven by low penetration, increasing consumer aspiration levels, increasing

affordability, and proliferation of new models.

Some of the features that deserve attention in respect of the Indian two wheeler segment

are as mentioned:

The total sale of two wheelers in India has touched a figure of 7.86 million units by

March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production

during the period reached 8.63 million units.

The production of two wheelers in India is expected to reach a staggering 17.85

million units by 2011-12, more than double of the current production level.

The two-wheeler production capacity is to reach 22.31 million units in 2011-12

compared with 10.78 million in 2006-07.

India is likely to export 1.39 million two-wheelers in 2011-12 compared with

590,000 in 2006-07.

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Total investment for new capacity generation in two-wheeler segment is likely to be

more than $2.2 billion (INR10, 000 crore).

Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales

and popularity of their two wheelers.

After facing its worst recession during the early 1990s, the industry bounced back with a

25% increase in volume sales in FY1995. However, the momentum could not be

sustained and sales growth dipped to 20% in FY1996 and further down to 12% in

FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales,

with the year-on-year sales (volume) growth rate declining to 3% that year. However,

sales picked up thereafter mainly on the strength of an increase in the disposable income

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of middle-income salaried people (following the implementation of the Fifth Pay

Commission's recommendations), higher access to relatively inexpensive financing, and

increasing availability of fuel efficient two-wheeler models. Nevertheless, this

phenomenon proved short-lived and the two-wheeler sales declined marginally in

FY2001. This was followed by a revival in sales growth for the industry in FY2002.

Although, the overall two-wheeler sales increased in FY2002, the scooter and moped

segments faced de-growth. FY2003 also witnessed a healthy growth in overall two-

wheeler sales led by higher growth in motorcycles even as the sales of scooters and

mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was

led by growth in motorcycles even as the scooters segment posted healthy growth while

the mopeds continued to decline. Figure 1 presents the variations across various product

sub-segments of the two-wheeler industry between FY1995 and FY2004.

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INTRODUCTION

Bajaj Auto limited is one of the largest two wheeler manufacturing company

in India apart from producing two wheelers they also manufacture three

wheelers. The company had started way back in 1945. 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.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 125 offers the consumer a great performance

without making a big hole in the pocket.

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PROFILE:

Founder Jamnalal Bajaj

Year of Establishment 1926

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 andIndonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office AkurdiPune - 411035IndiaTel.: +(91)-(20)-27472851Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.htmlmailto:rahulbajaj@bajajauto.co.inhttp://www.bajajauto.com/mailto:rahulbajaj@bajajauto.co.inhttp://www.bajajauto.com/http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.html

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KEY PERSONS:

Board of Directors

Rahul Bajaj Chairman

Madhur Bajaj Vice Chairman & Whole-Time Director

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

D.S. Mehta Whole-Time Director

Kantikumar R. Podar Director

Shekhar Bajaj Director

D.J. Balaji Rao DirectorJ.N. Godrej Director

S.H. Khan Director

Mrs. Suman Kirloskar Director

Naresh Chandra Director

Nanoo Pamnani Director

Manish Kejriwal Director

P Murari Director

Niraj Bajaj Director

Committees of the Board

Audit Committee

S.H. Khan Chairman

D.J. Balaji Rao

J.N. Godrej

Naresh Chandra

Nanoo Pamnani

Shareholders & Investors Grievance committeeD.J. Balaji Rao Chairman

J.N. Godrej

Naresh Chandra

S. H. Khan

Remuneration committee

http://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asp

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D.J. Balaji Rao Chairman

S.H. Khan

Naresh Chandra

Registered under the Indian Companies Act, VII of 1913

REGISTERED OFFICE Akurdi, Pune 411 035

WORKS Akurdi, Pune 411 035Bajaj Nagar, Waluj Aurangabad 431 136Chakan Industrial Area, Chakan, Pune 411 501

Bajaj Autos Ltd.

Bajaj Auto Limited

Type Public

Founded 1945

Headquarters Pune,India

Key people Rahul Bajaj (Chairman)

RevenueRs. 1,01,063 billion (2006) orUSD 1.87billion

Net income Rs. 17,016 billion

Employees ???

Website www.bajajauto.com

Bajaj Auto is a majorIndian automobile manufacturer. It is India's largest and theworld's 4th largest two- and three-wheeler maker. It is based in Pune,Maharashtra, withplants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes

motorscooters,motorcyclesand the auto rickshaw.

BAJAJ COMPANY HISTORY

http://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Billionhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.bajajauto.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Logo_bajaj.gifhttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/USDhttp://en.wikipedia.org/wiki/Billionhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Rshttp://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Websitehttp://www.bajajauto.com/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshaw

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Bajaj Auto came into existence on November 29, 1945 as M/s BachrajTrading Corporation Private Limited. It started off by selling imported two-and three-wheelers in India. In 1959, it obtained license from theGovernment 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, itmanaged to produce and sell 100,000 vehicles in a single financial year. In1985, it started producing at Waluj in Aurangabad. In 1986, it managed to

produce and sell 500,000 vehicles in a single financial year. In 1995, itrolled out its ten millionth vehicle and produced and sold 1 million vehiclesin 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, Kawasaki Bajaj KB100 1990 - Bajaj Sunny 1994 - Bajaj Classic 1995 - Bajaj Super Excel 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw 1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke

scooter) 2000 - Bajaj Saffire 2001 - Eliminator, Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear,

Bajaj Discover DTS-i 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200

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

Scooters

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o Bajaj Sunnyo Bajaj Chetako Bajaj Cubo Bajaj Supero

Bajaj Waveo Bajaj Legend

Motorcycles

o Kawasaki Eliminatoro Bajaj Pulsaro Bajaj Kawasaki Wind 125o Bajaj Boxero Bajaj CT 100

o Bajaj Platinao Bajaj Calibero Bajaj Discovero Bajaj Avenger

Upcoming Models

Bajaj Pulsar 220 DTS-Fi Bajaj Krystal Bajaj Blade Bajaj Sonic

New Image

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The company, over the last decade has successfully changed its image from a scootermanufacturer to a two wheeler manufacturer, product range ranging from Scooterettes toScooters to Motorcycle. Its real growth in numbers has come in the last 4 years aftersuccessful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajajwho is worth more than US$1.5 billion.

INTRODUCTION

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India has the largest number of two wheelers in the world with 41.6million vehicles. India has a mix of 30 percent automobiles and 70 percenttwo wheelers in the country. India was the second largest two wheelermanufacturer in the world starting in the 1950s with the birth of

Automobile Products of India (API) that manufactured scooters. APImanufactured the Lambrettas but, another company, Bajaj Auto Ltd.surpassed API and remained through the turn of the century from itsassociation with Piaggio of Italy (manufacturer of Vespa).The license raj that existed between the1940s to1980s in India, did not allowforeign companies to enter the market and imports were tightly controlled.This regulatory maze, before the economic liberalization, made businesseasier for local players to have a sellers market. Customers in India wereforced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajajcommented that he did not need a marketing department, only a dispatch

department. By the year 1990, Bajaj had a waiting list that was twenty-sixtimes its annual output for scooters.The motorcycle segment had the same long wait times with threemanufacturers; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield madea 350cc Bullet with the only four-stroke engine at that time and took thehigher end of the market but, there was little competition for theircustomers. Ideal Jawa and Escorts took the middle and lower end of themarket respectively.In the mid-1980s, the Indian government regulations changed and permitted

foreign companies to enter the Indian market through minority jointventures. The two-wheeler market changed with four Indo-Japanese jointventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda.The entry of these foreign companies changed the Indian market dynamicsfrom the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the

products they bought and raised higher customer expectations. The industryproduced more models, styling options, prices, and different fuelefficiencies. The foreign companies new technologies helped make the

products more reliable and with better quality. Indian companies had to

change to keep up with their global counterparts.

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BOARD OF DIRECTORS

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director

3 Mr. Toshiaki Nakagawa Jt. Managing Director

4 Mr. Takao Eguchi Whole-time Director

5 Mr. Satyanand Munjal Non-executive Director

6 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. Pradeep Dinodia Non-executive & Independent Director

11 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director

12 Mr. Analjit Singh Non-executive & Independent Director

13 Dr. Pritam Singh Non-executive & Independent Director

14 Ms. Shobhana Bhartia Non-executive & Independent Director

15 Dr. Vijay Laxman Kelkar Non-executive & Independent Director

HERO HONDA COMPANY HISTORY

Hero Honda is Indias largest motorcycle company with 2004-05 sales

of 26.2 lakh units, giving it a market share of 51.5% in motorcycles. Founded

in 1984 in a joint venture with Honda Motors, Japan, Hero Honda is one of

the most profitable and smoothly operating JVs for Honda Motors anywhere

in the world, giving it a foothold in one of the worlds largest and fastest

growing two wheeler markets.

In 1985-86, Hero Honda sold just 43, 000 units, launching its business

with the CD-100; Five years later, in 2000-01, it sold over 10 lakh, and in

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another five years, doubled that to over 25 lakh units. In 1987, it started the

engines plant as well, and produced with 100,000th bike that year. 1989 saw

the launch of the Sleek, now discontinued. It was in 1994 that Hero Honda

introduced the Splendor, which would go on to become the worlds single

largest selling motorbike brand. In 1995, Hero Honda was producing 800

bikes a day, 4 times the number of bikes it could produce a day when it

started up. By 1997, the company was producing 1200 bikes a day. In 2001,

Joy and Passion were launched, and the Ambition was launched in 2002.

Since then, the company launched Karizma, at Rs 80000 one of the most

expensive heavy-cc bikes (250cc) in India, but which once again belied thegeneral belief of India as a low-price market.

The company was also surprised when demand for this expensive bike

came from rural and semi urban areas and it sold 2000 bikes a month for a

few months. This bike opened up a whole upper cc segment in bikes. Today

Bajaj Pulsar is its biggest competitor in the 250cc range. It was the first to

herald the shift from scooters to motorcycles with style, power and

competitive pricing. For much of the early 1990s, established players like

TVS Motors and Bajaj Auto suffered reverses as the market shifted to

motorcycles. Today, the scenario is different as both these competitors have

brands that challenge Hero Honda, but market leadership still remains with

Hero Honda. It was also the first to create critical mass in the 75-125cc

ranges, where most brands compete. Hero Honda set a first with its dividend

policy as well, announcing a 1000% dividend in 2003-04. With the

motorcycle business doing well, Honda Motors announced its own entry into

India but not in the segments where Hero Honda operated; also the technical

JV was extended for another decade. Hero Honda sales for March 2005 were

Rs 7,421 crore, against Rs 5,832 crore in March 04. Net profits stood at Rs

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810 crore against Rs 728 crore in March 04.

Hero Honda Motorcycle Ltd.

Type Public companyBSE:HEROHONDA M

Founded January 19, 1984 in Gurgaon, Haryana,India

Headquarters Haryana,India

Key people

Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing Director

Mr. Pawan Munjal, Managing Director

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Industry Automotive

Products Motorcycles, Scooters

Revenue U$ 2.8 billion

Website http://www.herohonda.com/site/home/home.asp

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles andscooters. Hero Honda is a joint venture that began in 1984 between the Hero group ofIndiaand Honda from Japan. It has been the world's biggest manufacturer of 2-wheeledmotorized 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 arein Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcyclesthat are low powered but very fuel efficient.

Models

Bikes

Hero Honda Splendor Plus Hero Honda Passion Plus Hero Honda Karizma Hero Honda CBZ

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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

Hero, is the brand name used by the Munjal brothers in the year 1956 withthe flagship company Hero Cycles. The two-wheeler manufacturing

business of bicycle components had originally started in the 1940s andturned into the worlds largest bicycle manufacturer today. Hero, is a namesynonymous with two-wheelers in India today. The Munjals roll their ownsteel, make free wheel bicycle critical components and have diversified intodifferent ventures like product design. The Hero Group philosophy is: To

provide excellent transportation to the common man at easily affordableprices and to provide total satisfaction in all its spheres of activity. TheHero group vision is to build long lasting relationships with everyone(customers, workers, dealers and vendors). The Hero Group has a passionfor setting higher standards and Engineering Satisfaction is the primemotivation, way of life and work culture of the Group.

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In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and ManagingDirector of Hero Honda Motors (HHM), headed an alliance between theMunjal family and Honda Motor Company Ltd. (HMC). HHM MissionStatement is: We, at Hero Honda, are continuously striving for synergy

between technology, systems, and human resources to provide products andservices that meet the quality, performance, and price aspirations of ourcustomers. While doing so, we maintain the highest standards of ethics andsocietal responsibilities, constantly innovate products and processes, anddevelop teams that keep the momentum going to take the company toexcellence in the new millennium. This alliance became one of the mostsuccessful joint ventures in India, until the year 1999 when HMC hadannounced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI).This announcement caused the HHM stock price to decrease by 30 percentthat same day. Munjal had to come up with some new strategic decisions as,

HMSI and other foreign new entry companies were causing increasedintensity of rivalry for HHM.

GROWTH -: The business growth of Hero Honda has been phenomenalthroughout its early days. The Munjal family started a modest business of

bicycle components. Hero Group expanded so big that by 2002 they hadsold 86 million bicycles producing 16000 bicycles a day. Today Hero Hondahas an assembly line of 9 different models of motorcycles available. It holdsthe record for most popular bike in the world by sales for Its Splendormodel. Hero Honda Motors Limited was established in joint venture withHonda Motors of Japan in 1984, to manufacture motorcycles. It is currentlythe largest producer of Two Wheelers in the world. It sold 3 million bikes inthe 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 toachieve break-through in the competitive two-wheeler market. The Group'slow key, but focused, style of management has earned the company plauditsamidst investors, employees, vendors and dealers, as also worldwiderecognition.

The growth of the Group through the years has been influenced by a numberof factors:

JUST-IN-TIME -:

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The Hero Group through the Hero Cycles Division was the first to introducethe concept of just-in-time inventory. The Group boasts of superboperational efficiencies. Every assembly line worker operates two machinessimultaneously to save time and improve productivity. The fact that most of

the machines are either developed or fabricated in-house, has resulted in lowinventory levels. In Hero Cycles Limited, the just-in-time inventoryprinciple has been working since the beginning of production in the unit andis functional even till date.. This is the Japanese style of production and inIndia; Hero is probably the only company to have mastered the art of the

just-in-time inventory principle.

ANCILLARISATION -:

An integral part of the Group strategy of doing business differently was

providing support to ancillary units. There are over 300 ancillary unitstoday, whose production is dedicated to Hero's requirements and also a largenumber of other vendors, which include some of the better knowncompanies in the automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment anddedication of its workers. There is no organized labor union and familymembers of employees find ready employment within Hero. The philosophywith 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 companiesdid so, Hero was giving its employees a uniform allowance, as well asHouse Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra

benefits took the form of medical check-ups, not just for workers, but alsofor 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 dealernetwork comprising of over 5,000 outlets, and have a formidabledistribution system in place. Sales agents from Hero travels to all the cornersof the country, visiting dealers and send back daily postcards withinformation on the stock position that day, turnover, fresh purchases,anticipated demand and also competitor action in the region. The

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manufacturing units have a separate department to handle dealer complaintsand problems and the first response is always given in 24 hours.

FINANCIAL PLANNING -:

The Hero Group benefits from the Group Chairman's financial acumen andhis grasp on technology, manufacturing and marketing. Group Company,Hero Cycles Limited has one of the highest labor productivity rates in theworld. In Hero Honda Motors Limited, the focus is on financial and rawmaterial management and a low employee turnover.

QUALITY -:

Quality at Hero is attained not just by modern plants and equipment and

through latest technology, but by enforcing a strict discipline. At the Groupfactories, attaining quality standards is an everyday practice - a strictlypursued discipline. It comes from an amalgamation of the latest technologywith deep-rooted experience derived from nearly four decades of hard labor.It is an attitude that masters the challenge of growth and change - change inconsumers' perceptions about products and new aspirations arising from anew generation of buyers.

Constant technology up gradation ensures that the Group stays in the globalmainstream and maintains its competitive edge. With each of its foreign

collaborations, the Group goes onto strengthen its quality measures as perthe book. The Group also employs the services of independent experts fromaround the world to assist in new design and production processes.

DIVERSIFICATION -:

Throughout the years of enormous growth, the Group Chairman, Mr. Lallhas actively looked at diversification. A considerable level of backwardintegration in its manufacturing activities has been ample in the Group'sgrowth and led to the establishment of the Hero Cycles Cold Rolling

Division, Munjal and Sunbeam Castings, Munjal Auto Components andMunjal Showa Limited amongst other component-manufacturing units.

Then there were the expansion into the automotive segment with the settingup of Majestic Auto Limited, where the first indigenously designed moped,Hero Majestic, went into commercial production in 1978. Then came HeroMotors which introduced Hero Puch, in collaboration with global

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technology leader Steyr Daimler Puch of Austria. Hero Honda Motors wasestablished in 1984 to manufacture 100 cc motorcycles.

The Hero Group also took a venture into other segments like exports,financial services, information technology, which includes customerresponse services and software development. Further expansion is expectedin the areas of Insurance and Telecommunication.

The Hero Group's phenomenal growth is the result of constant innovations,a close watch on costs and the dynamic leadership of the Group Chairman,characterized by a culture of entrepreneurship, of right attitudes and buildingstronger relationships with investors, partners, vendors and dealers andcustomers

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RESEARCH METHODOLOGY

It is well known fact that the most important step in marketingresearch 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

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base of these objectives. A questionnaire was designed major emphasis of

which was gathering new ideas or insight so as to determine and bind out

solution to the problems.

DATA SOURCE

Research included gathering both Primary and Secondary data.

Primary data is the first hand data, which are selected a fresh and thus

happen to be original in character. Primary Data was crucial to know various

customers and past consumer views about bikes and to calculate the market

share of this brand in regards to other brands.

Secondary data are those which has been collected by some one elseand which 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 collection and best suited for descriptive type of

research survey includes research instrument like questionnaire which can

be structured and unstructured. Target population is well identified and

various methods like personal interviews and telephone interviews are

employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was

carried in Muktsar (Distt Muktsar)

These were 100 respondents.

DATA COMPLETION AND ANALYSIS

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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.

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OBJECTIVES

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.

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ANALYSIS & INTERPRETATION

Q1) Which bike do you have?

Hero Honda 47Bajaj 38

Any other 15

Q2) Which Model do you Have?

Hero Honda Bajaj

Splender 21 CT 100 7Passion 13 Discover 12

Karizma 7 Pulsar 11

Any other 6 Any other 8

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Q3) In which family Income level do you Fall?

100000-200000 22

200000-300000 45

300000-400000 23

above 400000 10

Q4) For how long do you own a bike?

0-1 year 34

1-2 year 292-3 year 26

above 3 year 11

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Q5) For what purpose do you use your Motor Bike?

Hero Honda BajajOffice Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3

Q6) How do you come to know about this Motor Bike?

Hero Honda BajajNewspaper 4 2

Television 23 16

Magazine 2 1

Friends & Relative 18 19

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Q7) Does Advertisement Influence your decisionin choosing a Motor Bike?

Yes 87%

No 5%

Cant say 8%

Q8) Do you have full knowledge about Bikes before buying?

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Hero Honda Bajaj

Yes 25 23

No 22 15

Q9) Which Factor below Influence your decision?

Hero Honda Bajaj

Price 72% 78%

Mileage 78% 64%

Quality 65% 48%

Resale Value 40% 28%

Status symbol 10% 7%

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Q10) How would you rate the following factors of Bikes with respectto different company?

Hero Honda Bajaj

Mileage 74% 72%

Price 68% 65%

Pick up 70% 80%

Maintenance 58% 62%

Look & Shape 85% 80%

Brand Image 53% 55%

Q11) If new Bike with good features comes in, then would youlike to change your bike?

Hero Honda Bajaj

Yes 19 21

No 17 14

Cant say 11 3

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ENCLOSURE

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CONCLUSION

Most of the Pulsar, CBZ & Karizma are purchased by young

generation 18 to 30 because they prefer stylish looks and rest of the

models of Hero Honda are purchased more by daily users who needsmore average of bikes than looks.

Hero Honda is considered to be most fuel-efficient bike on Indian

roads.

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Service & Spare parts are available throughout India in local markets

also.

While buying a motorcycle, economy is the main consideration in

form of maintenance cost, fuel efficiency.

Majority of the respondent had bought their motorcycle more than 3

years.

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SUGGESTION&RECOMMENDATIONS

Bajaj should introduce some more models having more engine

power.

Hero Honda should think about fuel efficiency in case of upper

segment bikes.

More service centers should be opened.

Maintenance cost and the availability of the spare parts should

also be given due importance.

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They also introduce some good finance/discount schemes for

students.

The price should be economic.

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BIBLIOGRAPHY

www.herohonda.com

www.google.com

www.bajaj.com

www.twowheeler.com

www.extrememachines.com

http://www.herohonda.com/http://www.google.com/http://www.bajaj.com/http://www.twowheeler.com/http://www.extrememachines.com/http://www.herohonda.com/http://www.google.com/http://www.bajaj.com/http://www.twowheeler.com/http://www.extrememachines.com/

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QUESTIONNAIRENAME: - Date: .

CONTACT NO:- . Place

ADRESS:-..

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AGE:- 15-20 20-25

25.30 Above 30

OCCUPATION:- Businessman Employee

Student Other

Q1) Which Bike do you have?

Hero Honda Bajaj Any Other

Q2) Which Model do you have?

Hero Honda: - Splendor Passion

Karizma Other

Bajaj: - 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

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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 Cant say

Q8) Do you have full knowledge about Bikes before buying?

Yes No

Q9) Which factor below influence your decision?

Price Mileage Quality

Resale Value Status Symbol

Q10) In new bike with good feature comes in, then would you like to change your bikes?

Yes No Cant say

(Signature)

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