1

CHAPTER I

INTRODUCTION

1.1 Background information

1.1.1 A brief profile of Dang Valley

Dang district is the most improved and urbanized district among the districts

of Mid-Western Development Region that lies under the Rapti Zone. This district is

surrounded by different geographical structures and lies 213 meters (Sisanhiya’s

Bhanpur) to 2058 meters high (Hasipur’s Arkhale) above the sea level.

In the east of this district, Kapilvastu, Arghakhanchi and Pyuthan districts lies,

Surkhet and Banke in the west, Salyan and Rolpa in the north whereas Uttar Pradesh

of India in the south.

According to the Census of 2058 B.S the total population of this district was

462,380 where the number of male population was 228,958 and female 233,422. Out

of this total population 12% of the population lives in urban areas and other remaining

88% in rural areas.

Similarly the majority inhabitants are Tharu (31.84%). Mainly 62.63% people

speak Nepali, 26.73% speak Tharus and remaining speaks other language. The main

religion of the people of this valley is Hindu. The main religion place of this valley is

Chaunghera Mai, Ambikeswori, Barhakune Daha, Dharpani etc.

Moreover here are 2 municipalities (Ghorahi and Tulsipur), 39 VDC’s and

about 23.67% of the total land is cultivable land. The forest covers the 66% and the

most important infrastructure road is developed in all 39 VDC’s.

The main occupation of this district is agriculture (79%) and other remaining

are business (9.94%), officer (5.17%), industries (2.23%), contractor (2.18%) and

other (1.61%).

The headquarter of this district is Ghorahi and most of the offices like Post

Office, Malpot Office, Education Office and so on are in Ghorahi.

2

As more as population is increasing, people are engaging in different types of

business. In present scenario, the businesses of scooters have become most popular in

Ghorahi area. Now a day’s most of the people either male or female use scooters.

1.1.2 Scooters

Scooters are the two wheeler mode of transportation which has been made for

female. But now a days it's used by male too.

1.1.3 Honda Scooters

The Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) factory is spread

over 52 acres, with a covered area of about 85, 815 square meters at Manesar,

Gurgaon district of Haryana. The foundation stone for the factory was laid on 14th

December 1999 and the factory was completed in January 2001. The initial installed

capacity was 100,000 scooters per year, which has reached 6, 00,000 scooters by the

year by 2007 and motorcycle capacity shall be 4, 00,000 per annum. The total

investment outlay for the initial capacity was Rs. 215 crores and now the accumulated

investment is more than800 crores.

The second plant at the Tapukara Industrial Area of Rajasthan, which

isapproximately 90km from the center of Delhi, has become operational from July

2011 with annual production capacity of 0.6 million units.

Honda launches its Most Affordable Automatic Scooter in India. As the

unchallenged market leader with an overwhelming 50% market share in the Indian

automatic scooter segment, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI)

today launched its first 110cc personal compact scooter offering - ACTIVA-I. Its

main aim is to reinforce market leadership with its 1st personal compact scooter

offering.

New ACTIVA-I, Honda has now entered the personal compact category

which contributes almost 25% of automatic scooter sales in India.

In Personal Compact Scooter category, Customers desire an automatic scooter

for daily commute which is lightweight, compact and easy to handle yet comfortable

for both genders. Thus was developed ACTIVA-I Honda’s First ever “Light weight

personal compact” automatic scooter and it is Most Affordable too.

3

ACTIVA-I has been specially developed for comfort and convenience and

leaves competition models far behind with its long list of exclusive features. These

include – Combo Brake System (which reduces braking distance by 24% compared to

conventional brakes), tubeless tires, maintenance free battery, viscous air filter,

comfortable seating posture and maximum storage space of 18 liters. The compact

and lean design is easy to handle in traffic by both male and female riders. At 103kg,

its lightweight design ensures fatigue free ride & ease of parking for female riders and

high ground clearance of 165mm guarantees joyful riding.

ACTIVA-I is sure to win hearts with its subtle yet attractive unisex style. The

stylish indicators, appealing front headlight, chiseled muffler and catchy tail light are

in complete synergy with the overall smoothness of looks. The vibrant instrument

panel provides all information to rider in a glance.

The wide front panel marries rider protection with good aesthetics while the

specially designed ergonomic grab rail ensures that rider can put the scooter on stand

with 15% less force.

On the performance front, Honda’s technologically advanced 109 cc 4-stroke

air-cooled engine comes with the revolutionary. Honda Eco Technology successfully

combines improved combustion, reduced friction and optimized transmission leading

to Dream Mileage of 60kmpl.

Leaving competition way behind in the roads, ACTIVA-I gives best in class

net power of 5.83kw (8 BHP), superb torque output of 8.74Nm@5500RPM for better

pickup and effortless riding with higher initial and overtaking acceleration.

ACTIVA-I comes in 4 stunning colors – Beige Metallic, Pearl Sunbeam

White, Alpha Red Metallic and Purple Metallic.

Honda also introduced Dio scooters which has remained the first choice of

young people for personal vehicle. Dio has a fantastic performance plus a slim and

attractive body. It has a 102 CC engine and gives a mileage of 40-45 km per liter.

Honda has been changing body cosmetics and graphics of Dio time and again. The

have recently introduced 3rd generation of Dio Scooter with some changes in

cosmetics and body parts.

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1.1.4 Mahindra Scooters

Mahindra Two Wheelers Limited (MTWL) is a group venture owned by

Mahindra & Mahindra Limited (M&M), which manufactures scooters and

motorcycles. Mahindra Two Wheelers Limited was founded in 2008, when Mahindra

& Mahindra Limited acquired the business assets of Kinetic Motor Company Limited.

MTWL has partnered with Taiwan's Sanyang Industry Company (SYM) to help

develop its scooter portfolio, and with Italy-based Engines Engineering for research

and product design.

The company has a state-of-the-art manufacturing facility at Pithampur, near

Indore. The plant’s products and processes are ISO 9001 certified from DNV.

Mahindra 2 Wheelers' Pithampur plant has a total capacity to assemble about 5,

00,000 units p.a. on a three shift basis. Mahindra Two Wheelers Ltd. also has an

R&D unit located at Chinch wad, Pune, equipped with necessary design and

development facilities right from renderings to prototype manufacture and testing.

With its range of two wheeler vehicles, it strives to offer products that redefine the

market and consumer expectations with breakthrough technology. In the long term,

MTWL aims at becoming a product and technology- led marketing organization.

Mahindra 2 Wheelers, the two wheeler arm of the US $ 6.3 billion Mahindra

Group, announced the sale of a record 10,000 units in January 2010. The figure

includes the recently launched Power Scooters, the Mahindra Rodeo and the

Mahindra Duro, along with the Mahindra Flyte. The strong sales numbers are proof

of the fact that the Power Scooters are creating waves across India with their strong

value proposition of style and power. Mahindra 2 Wheelers has differentiated itself

through strong brands that cater to specific target segments and the response which

has received from the market has been extremely encouraging.

Within the overall two-wheeler strategy, scooters form M&M's entry point

into the Indian market and will be an important part of the company's overall two-

wheeler product portfolio. There are several macro environmental trends which make

the scooter market especially attractive to Mahindra. These include a younger, more

affluent customer base with a significant number of empowered women and increased

scooter demand in tier-2 cities and small towns. M&M is strongly positioned to cater

5

to this demand, given the company's significant presence and brand equity in these

markets.

The strong in-house design and development competencies provided by

Mahindra Engineering Services (MES), the Italy-based design house, Engines

Engineering and Taiwan’s Sanyang Industry Company Limited (SYM), coupled with

M&M’s R&D strengths will help the company assume a significant position in the

rapidly growing Indian and global two-wheeler market.

The company will focus on building a global R&D network and draw upon the

best available global competency pool, while retaining the flexibility to cater to

specific consumer requirements in all segments. Mahindra 2 Wheelers being the

newest entrant in the industry has the advantage of changing the dynamics of the

game through innovation and consumer insight led marketing strategy.

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1.2 Objective of the study

The specific objectives of my research were:

1. To analyze the sale and profit of Honda and Mahindra scooters in Ghorahi

area.

2. To analyze the market opportunities of Honda and Mahindra scooters Ghorahi

area.

3. To analyze the demand of Honda and Mahindra scooters.

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1.3 Statement of the problem

Motorcycles and scooters are the most common and popular mode of

transportation in most Asian countries. Because of science and technology the

different branded of scooters are invented day by day. Among the different brand

Honda and Mahindra are one. The Honda and Mahindra scooter showroom are the

leading sellers of Honda and Mahindra two wheel scooters in Ghorahi area. The

Honda scooters showroom was established in the year 2065 and the Mahindra scooter

showroom was established in 2067, and they are delivering to the customers in all

over the Ghorahi area. This research is mainly conducted to analyze the situation of

Honda and Mahindra scooter showroom which includes the service, rate, brand etc.

To fulfill the demand of management required by different organization and to

develop the internal ability this research has been conducted. In the past years they

have been into the active in promoting two wheeler products but in the recent the

sales of Mahindra scooters is not so good only satisfactory than Honda scooters

because of the competition of market and dissatisfaction among large group of

customers due to deteriorating in the quality of after sales service. Hence the

management had felt the need to conduct through analysis about the existing

effectiveness of after sales service and its impact on the organization overall sales

performance. I was glad to accept this assignment from the organization perspective

and as a part of BBA curriculum to fulfill the summer project. “Comparative market

analysis of Honda and Mahindra scooters, Dang” is the important statement of the

problem in this project.

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1.4 Importance of the study

As a student of management, the main importance of conducting research is to

build up the internal ability regarding research and communication. The main

importance to conduct this research is to know the business opportunities and

challenges of Mahindra and Honda scooters. Today’s business is customer oriented

not the market oriented. Before there was monopoly market but now there is perfect

competition in the market and the business person should give first priority in quality

rather than quantity. So to know the behavior of the business person this research is

conducted. The great importance of conducting this research is to know the

relationship between customer and producer.

Finally, to fulfill the demand of management required by different

organization and to be more practical in life this research is conducted.

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1.5 Limitation of the study

Although the research was conducted to give the accurate and valid result on

the topic “comparative market analysis of Honda and Mahindra scooters, Dang”,

there are some limitations of this research which are as follows:

Due to the lack of time, knowledge, experience and availability of data, the

report does not contain deep and intensivemarket analysis of Honda and

Mahindra scooters business.

Due to the unavailability of sufficient references and resources, most of the

data used are of secondary type in forms of profile, brochures, annual

reports and other sources.

Upto date and complete data are difficult to obtain because of unavailability of

sufficient data, references and resources.

The study has been completed within shorter time frame so many variables

related tothe interest of study have been left out.

The data available on the questionnaire are quite limited to this report because

of which the report cannot be designed in desired form.

Probability of accuracy is very low.

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1.6 Hypothesis formulation

Hypothesis is the tentative journalization which should be tested after the

research. It is guessed answer of research questions or presume conclusion of the

research which should be tested. Hypothesis of this research are as follows:

Both scooters are equally demanded.

The profit of both scooters showroom is constant.

The investment of both scooters showroom is constant.

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1.7 Literature Review

Scooters are emerging as a major component of Nepal’s two-wheeler market

and they account for a significant share of annual sales. Enthused by the market

response, distributors of various motorcycle brands have rolled out a number of

scooters. The success of scooters in the domestic market can be gauged by the fact

that five models were launched in the fiscal year 2010-11. The market saw the arrival

of a new version of the Honda Dio, the SYM Jet 4 and Orbit II from Taiwanese brand

SYM, the Fencing 125 cc and the Swish from Suzuki.

The domestic market saw approximately 21,000 units of scooter s being sold

in the fiscal year 2010-11. Traders estimate that sales grew to 27,000-28,000 units in

the last fiscal. “Scooters now have a share of around 30 percent in the overall two-

wheeler market,” said Saurav Jyoti, chairman of the Nepal Automobile Dealers

Association (NADA). “The figure is increasing daily and it seems that the scooter

segment will grow continuously for a few more years.” According to Jyoti, the main

reason behind the significant rise in scooter sales is convenience while riding and

maximum utility. It offers maximum utility, and is convenient while riding. This is

why sales have gone up,” he said. Apart from this, stylish looks and better

performance of new generation scooter s have encouraged customers to go for scooter

s. “Normally, scooter s consume more fuel in comparison to a motorcycle. But scooter

manufacturers have been introducing fuel efficient models. This has also played a

positive role in the growth of sales,” said Jyoti. Jyoti, who is also the distributor of

Honda two-wheelers in Nepal, said that scooter sales account for 50 percent of their

annual sales. The scooter segment has shown notable growth in the past two-three

years

Better access to roads and a rise in the number of migrant workers have played

a catalytic role in the growth of two-wheeler sales. The sales of scooters have surged

tremendously in recent days. Scooters are increasingly being popular here because of

the fact that they are easy to handle and can be used by all family members. A scooter

now has become a family vehicle. Increasing use by women has helped to expand

scooter sales. Currently, scooter s from Honda, Hero Honda, TVS and Mahindra are

enjoying rising sales. Honda Dio and the Honda Aviator, claims to hold more than 50

percent of the two-wheeler market.

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Pramila Khatri, sales manager at Ganesh Enterprises, the sole authorized

distributor of Suzuki in Nepal, said that scooter sales had been swelling as they fulfil

the requirement of everybody in the family. “Even those who own a car are going for

scooter s as they are easy to ride and can be used by everyone in the family,” she said.

RajuBhetwal, the vice president-sales and marketing of SG Global, recently

appointed sole authorized distributor of Mahindra scooters for Nepal. According to

Raju, Mahindra in itself is a big brand. It has a very strong presence and positive

impression in rural Nepal as other vehicles from Mahindra have proven their caliber.

However, there had been problems regarding publicity, due to which people started

underestimating the products although they were good. Therefore, we are new

focusing on branding Mahindra two-wheelers. Within the first month of our

operation, 100 scooters have been sold. Showrooms have been made attractive and we

are successful in pulling customers. In the scooter segment, Mahindra is in third

position after Honda and Hero Honda.

In fiscal year 2008-09, six scooters used to sell against the sales of 100 two-

wheelers. In 2009-10, the number went up to 11, and the figure reached 19 in the first

four months of in 2010-11. The segment has so far contributed 26 percent to the total

two wheeler sales. This shows that scooters are developing as one of the popular

means of transportation in Nepal. This is also the reflection of Nepali society which is

heading towards massive advancement. Around 50 percent of scooter riders in Nepal

are female, and the increment in sales means women are getting more independent

and exercising freedom. The projected sales of scooters would finish somewhere

around 27,000 to 28,000 units this year. Last year the figure was at 21,000.

There are various factors contributing to this. Some three-four years ago, one

would hardly see men riding scoters. They used to shy away from scooters

considering them feminine machines. Nowadays, you can see a lot of guys riding

scooters. This is because of television and internet. Also, the society started opening

up. These machines are now purchased for commuting purpose. As motorcycles by

nature are aggressive, a lot of people are considering scooters safer. Emergence of

prosperous middle-class also played a catalytic role in the growth.

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1.8 Research methodology

A systematic methodology is required to pick out an actual result for any

special study. Research is the systematic investigation to get new knowledge about

any subject matter. It means the search for knowledge and methodology refers to

various sequential steps that are adopted in the study. In this research, information has

been collected through review of institutional records and direct personal interview

with the owner of Honda and Mahindra scooters dealer. Also various other methods

such as Observation method, Interview method, Questionnaire method etc. have been

used to collect information related research topic. Mainly secondary data(published

and unpublished)has been used.

1.8.1 Research Design

The detail plan and strategy to conduct the research or to meet the research

objective is known as research design. A Research Design is purely and simply of the

framework or plan of study that guides the collection and analysis of data. Research

design is the plan structure and strategy of investigation conceived as to obtain answer

to research question and to control variances. It is a framework or a general plan for

the study guiding the collection and analysis of data. It focuses on the data collection

methods, the research instruments utilized, and the sampling plan to be used. It is an

integrated approach that guides the researcher in formulating, implementing, and

controlling the study. The main objective of this study is to examine The

Opportunities and Challenges of scooters business in Ghorahi area. To achieve this

objective, both the descriptive research design and comparative research design have

been adopted.

Descriptive research design includes simple description of Dang valley and

about Honda and Mahindra scooters business.

Similarly comparative research design includes total comparative study of

Honda and Mahindra scooters. The comparative study has been conducted to find out

the market opportunities and challenges of both scooters i.e. Honda and Mahindra.

Varieties of methods have been applied to collect data i.e.observation method,

Interview method, Questionnaire method etc. This research design have been

concentrated in both qualitative and quantitative study

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CHAPTER II

DATA ANALYSIS

2.1 Data presentation and analysis:

Data analysis is an important stage of the research process. The purpose of

analyzing the data is to change it from an unprocessed form to an understandable

presentation. Raw data conveys little information as such. It must, therefore, be

compiled, analyzed, and interpreted carefully before its full meaning and implications

can be understood. The data is thus transformed into information which is called

analysis.

In this chapter, the obtained data from the various resources are presented

below in tables and line and after that those data have been analyzed and

interpreted

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2.1.1 Capital structure

2.1.1.1 Capital structure of Mahindra scooters showroom

(Source: Annual financial report of Mahindra scooter showroom)

Fig.1:-Pie-Diagram of capital structure of Mahindra showroom

In the above table and pie-diagram the capital structure of Mahindra Scooters

Showroom has been shown. The Scooters Showroom has been operated by investing

Rs. 5000000 at first. But due to rendering better services and high demand of

Mahindra scooters in current market, the capital of this Scooters Showroom has been

increasing day by day. And now it is running with the total capital of Rs. 10000000.

So, by analyzing this data we can conclude that Mahindra Scooters Showroom is

expanding its business day by day by increasing capital structure.

2067/06823%

2068/06932%

2069/07045%

Capital

Fiscal year Capital

2067/068 5000000

2068/069 7000000

2069/070 10000000

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2.1.1.2 Capital structure of Honda Scooters Showroom

(Source: Annual financial report of Honda scooter showroom)

Fig. 2:-Pie-Diagram of capital structure of Honda showroom

In the above table and pie-chart the capital structure of Honda Showroom has

been presented. According to the given table and pie-chart we can identify the capital

structure of Honda Scooters Showroom.In the fiscal year 2067/068 the capital of

Honda Scooters Showroom was Rs.7000000. But in the fiscal Year 2068/069the total

capital of the Honda Scooters Showroom reaches at Rs. 10000000. And now i.e. fiscal

year 2069/070 the total capital of Honda Scooters Showroom is Rs.15000000. By

analyzing abovedata, we can conclude that the capital structure of the Honda Scooters

Showroom is increasing day by day.

By analyzing above data of Mahindra and Honda scooters showroom, we can

conclude that the capital structure of both scooters showroom has been increasing day

by day. But the present capital structure of Honda scooters showroom is higher than

the present capital structure of Mahindra scooters showroom.

Capital

2067/068

2068/069

2069/070

Fiscal year Capital

2067/068 7000000

2068/069 10000000

2069/070 15000000

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2.1.2 Quantities sales

2.1.2.1 Quantities sales of Mahindra Scooters showroom

(Source: Annual income statement of Mahindra scooter showroom)

Fig.3:-Diagram of quantities sales of Mahindra showroom

In the above diagram x-axis measures the numbers of scooters sales per month

and the y-axis measures the fiscal year. In the fiscal year 2067/068 the quantities sales

of the Mahindra scooters is 30. Gradually as the business expands the sales also

increases i.e. it reaches to 50 in the fiscal year 2068/069. Similarly the sales are

increasing in every year. In fiscal year 2069/070 the sales rapidly increases to 70. And

the total sale reaches to 150. By analyzing above data, we can see that the sale of

Mahindra scooters is increasing trend. From the above data we can conclude that this

business is increasing day by day and the future of this scooters showroom is bright

because we can see the rapid growth of sales in the above diagram.

0 10 20 30 40 50 60 70

2067/068

2068/069

2069/070

Sales

Sales

Fiscal year Quantity

2067/068 30

2068/069 50

2069/070 70

Total 150

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2.1.2.2 Quantities sales of Honda scooters showroom

(Source: Annual income statement of Honda scooter showroom)

Fig.4:-Diagram of quantities sales of Honda showroom

The above table and figure shows the quantity sales of Honda scooters on

different fiscal year in Ghorahi area. In the above figure, x-axis and y-axis represents

the quantities sales of Honda scooters and the fiscal year respectively. According to

table and figure, the quantity sales of Honda scooters are 55 in the fiscal year

2067/068. Similarly, in the fiscal year 2068/069 the quantity sales of Honda scooters

are 80. Due to the better quality and good looking the quantities sales of Honda

scooters reaches up to 115 in the fiscal year 2069/070. And the total sale reaches up to

250. By analyzing these data, we can conclude that the sales of Honda scooters are

increasing with increasing trend.

By analyzing and comparing both the data of Mahindra and Honda scooters,

we can conclude that the quantity sales of Honda scooters are higher than the sales of

Mahindra scooters in every fiscal year and in total also.

0 20 40 60 80 100 120 140

2067/068

2068/069

2069/070

Quantities sales

2067/068

2068/069

2069/070

Fiscal year Quantity

2067/068 55

2068/069 80

2069/070 115

Total 250

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2.1.3 Sales revenue

2.1.3.1 Sales revenue earned of Mahindra scooters showroom

(Source: Annual income statement of Mahindra scooter showroom)

Fig.5:-Diagram of sales revenue of Mahindra showroom

In the above figure x-axis measures the sales revenue earned by selling

Mahindra scooters and y-axis measures the fiscal year (2067/068 to2069/070). In the

fiscal year 2067/068 the total sales revenue was Rs.5050000 and in 2068/069 the sales

revenue increases by Rs.3390000 and becomes Rs. 8440000. In the fiscal year

2069/070 the sales revenue became Rs.11760000. So from this diagram we can

conclude that the expected sales revenue from the sales of Mahindra scooters will be

increasing.

2067/068

2068/069

2069/070

0

500000010000000

1500000020000000

Sales Revenue

2067/068

2068/069

2069/070

Fiscal year Sales Revenue

2067/068 5050000

2068/069 8440000

2069/070 11760000

Total 25250000

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2.1.3.2 Sales revenue of Honda scooters showroom

(Source: Annual income statement of Honda scooter showroom)

Fig.6:-Diagram of sales revenue of Honda showroom

In the above figure x-axis measures the sales revenue earned by selling Honda

scooters and y-axis measures the fiscal year (2067/068 to2069/070). In the fiscal year

2067/068 the total sales revenue earned by Honda showroom was Rs.8180000 and in

2068/069 the sales revenue increases by Rs.3640000 and the total sales was Rs.

11820000. In the fiscal year 2069/070 the sales revenue is Rs.11760000. So from this

diagram we can conclude that the expected sales revenue from the sales of Honda

scooters will be increasing.

By analyzing above data of Mahindra and Honda scooters showroom

regarding sales revenue we can see that the sales revenue earned by selling both

Mahindra and Honda scooters are increasing every fiscal year but the increasing trend

of Honda scooters is higher than Mahindra scooters. Thus, we can conclude that the

market of Honda scooters is higher than the Mahindra scooters.

2067/068

2068/069

2069/070

0

500000010000000

1500000020000000

Sales Revenue

2067/068

2068/069

2069/070

Fiscal year Sales Revenue

2067/068 8180000

2068/069 11820000

2069/070 17000000

Total 37000000

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2.1.4 Gross profit

2.1.4.1 Gross profit of Mahindra Scooters showroom

(Source: Annual income statement of Mahindra scooter showroom)

Fig.7:-Figure of gross profit of Mahindra showroom

In the above figure, the fiscal year and the gross profit earned from the sales of

Mahindra scooters are represented along the x-axis and y-axis respectively. According

to above figure, the total profit earned by Mahindra scooters showroom was

Rs.350000 in the fiscal year 2067/068 and Rs490000 in the fiscal year 2068/069. Due

to the high demand of mahindra in present situation the Mahindra scooters showroom

is success to earn Rs.680000 profit in the fiscal year 2069/070. And finally the total

gross profit of this showroom over the three fiscal years is Rs.1520000.

0

10

20

30

40

50

60

70

80

2067/068 2068/069 2069/070

Gross profit from the sales of Mahindra Scooters (in '0000)

2067/068

2068/069

2069/070

Fiscal year Gross Profit

2067/068 350000

2068/069 490000

2069/070 680000

Total 1520000

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Correlation between the Sales and the Profit of Mahindra scooters

Year Sales (X) Profit (Y)

(“000”)

))(( YYXX 2)( XX

2)( YY

2067/068 30 350 3133.40 400 24545.4889

2068/069 50 490 0 0 277.889

2069/070 70 680 3466.60 400 30043.2889

Total(n) =

3

∑X= 150 ∑Y= 1520 ∑ ))(( YYXX

=6600

∑2)( XX

=800

54866.6668

Here, X = n

X =

3

150 = 50

Y = n

Y =

3

1520 = 506.67

Correlation(r) = 22 )(.)(

))((

YYXX

YYXX

= 6668.54866800

6600

= 204.6625

6600

= 0.996

From the above correlation we can conclude that the profit increases as

increase in number of sales. Since the correlation is positive, the sales lead to

increases in the profit. So as the number of sales increases, the profit also increases.

23

2.1.4.2 Gross profit of Honda scooters showroom

(Source: Annual income statement of Honda scooter showroom)

Fig.8:-Figure of gross profit of Honda showroom

In the above figure, the fiscal year and the gross profit earned from the sales of

Honda scooters are shown in x-axis and y-axis respectively. This figure shows the

gross profit earned by selling honda scooters in Ghorahi area. According to above

figure, the total gross profit of Honda scooters showroom was Rs.650000 in the fiscal

year 2067/068 and Rs890000 in the fiscal year 2068/069. Due to the high demand of

Honda in present situation the showroom is success to earn Rs.1250000 gross profit in

the fiscal year 2069/070. And finally the total gross profit over the three fiscal years

of honda scooters showroom is Rs.2790000.

By analyzing and comparing the data of both Mahindra scooters showroom

and Hond sccooters showroom regarding gross profit we can conclude that the gross

profit earbed by selling Honda scooters is higher compare to the profit of Mahindra

scooters.

0

200000

400000

600000

800000

1000000

1200000

1400000

2067/068 2068/069 2069/070

Gross profit from the sales of Honda scooters

Gross profit

from the sales…

Fiscal year Gross Profits

2067/068 650000

2068/069 890000

2069/070 1250000

Total 2790000

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Correlation between the Sales and the Profit of Honda scooters showroom

Year Sales (X) Profit (Y)

(“000”)

))(( YYXX 2)( XX

2)( YY

2067/068 55 650 7932.4 802.5889 78400

2068/069 80 890 133.2 11.0889 1600

2069/070 115 1250 10134.4 1002.9889 102400

Total(n) =

3

∑X= 250 ∑Y= 2790 ∑ ))(( YYXX

=18200

∑2)( XX

=1816.6667

182400

Here, X = n

X =

3

250 = 83.33

Y = n

Y =

3

2790 = 930

Correlation(r) = 22 )(.)(

))((

YYXX

YYXX

= 1824006667.1816

18200

= 296.18203

18200

= 0.999

From the above correlation we can conclude that the profit increases as

increase in number of sales. Since the correlation is positive, the sales lead to

increases in the profit. So as the number of sales increases, the profit also increases.

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2.1.5 SWOT ANALYSIS:

SWOT Analysis is a strategic planning method used to evaluate the Strength,

Weakness, Opportunity and Threats involved in a project or in a business venture. It

identifies the internal and external factors that are favorable and unfavorable to

achieving that objective.

A SWOT analysis provides information that is helpful in matching the firm’s

resources and capabilities to the competitive environment in which it operates. So, it

is instrumental in strategy formulation and selection.

Strengths:

A firm’s strengths are its resources and capabilities that can be used as its

power of being exist in the competitive environment. Strengths of Mahindra and

Honda scooters showroom:

The Mahindra and Honda Scooters Company both have good

reputation among customers.

The both company have developed modern scooters by

considering the desired and requirement of customers.

Weakness:

The absence of certain strengths may be viewed as a weakness.

Weakness of both scooters showroom may be considered as:

Heavy competition.

High cost structure.

Opportunities:

The external environment analysis may revel certain new opportunities for

profit and growth. Opportunities of both scooters showroom include:

Due to the population growth the demand of scooters increases.

Because of fashion or to show the personality the number of people riding

scooter is increasing day by day.

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Threats:

Changes in the external environmental also may present threats to the firm.

Threats of both scooters showroom include:

Difficult to have a competition on quality and price with other company’s

scooters.

Fuel crises in a country.

Lack of transportation to supply the product out of the Dang.

Difficult to satisfy consumers demand.

Situation of political instability in a country.

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2.1.6 Test of hypothesis

The study that proposed to test two different hypothesis. We will now test

each of these hypotheses on the basis of above table and diagram.

Hypothesis 1:

H0: Both scooters are equally demanded.

H1: Honda scooters are greater demanded than Mahindra scooters.

According to table and fig. 3 and 4, we can conclude that the demand for

Honda scooters is greater than the demand for Mahindra scooters. Thus alternative

hypothesis is accepted.

Hypothesis 2:

H0: The profit of both scooters showroom is constant.

H1: The profit of both scooters showroom is increasing day by day.

According to table and fig. 7 and 8, we can conclude that the profit of both

showrooms is increasing day by day. Thus alternative hypothesis is accepted.

Hypothesis 3:

H0: The investment of both scooters showroom is constant.

H1: The investment is increasing year by year.

According to table and Pie-Diagram 1 and 2, we can conclude that the

investment of Honda scooters showroom and Mahindra scooters showroom is

increasing year by year. Thus alternative hypothesis is accepted.

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2.2 Major findings and Discussion

Research is the systematic and scientific investigation of any phenomena or

situation. This research was conducted to find out the current market situation of the

Honda and Mahindra scooters showroom. Some of the major findings of this research

are mentioned below:

The Honda scooters showroom and Mahindra scooters showroom were

established in 2065 and 2067 with the capital of Rs.4000000 and Rs.5000000

respectively and registered in small scale and cottage industry and tax office.

Thee capital structure of these scooters showroom is increasing day by day

with increase in demand.

The sales of these two brand scooters are increasing day by day but the Honda

scooters are more demanded than that of Mahindra scooters.

The position and performance of these two scooters showroom i.e. Honda and

Mahindraare satisfactory.

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CHAPTER III

SUMMARY AND CONCLUSION

3.1 Summary

This comparative study of opportunities and challenges of Honda and

Mahindra scooters showed a result that the business of scooters are increasing day

by day in present situation in Ghorahi area. That’s why it can be said that

transaction of scooter is one of the successful businesses in Ghorahi. Different

data of Honda and Mahindra scooters showroom from fiscal year 2067/068 to

2069/070 had been taken for the purpose of study. The study is based on

secondary data as well as primary data. The data has been taken from annual

reports, website and direct interview with Managing Director.

By analyzing and interpreting the collected data regarding the business of

Honda and Mahindra scooters the research reached the conclusion that the business of

both Honda and Mahindra scooters are running smoothly and growing rapidly which

leads to increase in capital structure of scooters showroom. But the business of Honda

scooters is growing more rapidly than the business of Mahindra scooters. So profit

earned by Honda scooters showroom is higher than the Mahindra scooters showroom.

Last but not the least, the overall situation of these showrooms is normal.

Although there are some opportunities and challenges of these showrooms but they

has been considered as successful business till now.

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3.2 Conclusion

As the data collected were analyzed through different means we can conclude

that the business Honda and Mahindra scooters are satisfactory. In present situation

these scooters showroom are trying to maintain the good relationship with customer

by providing quality product and heavy discount. As the population is increasing day

by day the demand of scooters are also increasing. But due to the strong competition

only those branded scooters are demanded whose cost is low and providing heavy

discount.

By analyzing and interpreting the collected data regarding the business of

Honda and Mahindra scooters the research reached the conclusion that the business of

both Honda and Mahindra scooters are running smoothly and growing rapidly which

leads to increase in capital structure of scooters showroom. But the business of Honda

scooters is growing more rapidly than the business of Mahindra scooters. So profit

earned by Honda scooters showroom is higher than the Mahindra scooters showroom.

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3.3 Recommendation

During research, I found some strength, some weakness, opportunity and

threats of the organization. The strength point should not be loosed and opportunities

should be grabbed. The weakness point should be improved and threats should

visualize and minimized. Here after thee research some of the recommendations for

the Honda and Mahindra showroom are mentioned below:

i) Business owner should give more priority in brand and service rather than

profit.

ii) Different types of discount and special offer should be launched.

iii) Businessman should always try to understand the overall internal and

external environment.

iv) Suggestion, recommendation of customer should be handled.

v) Skill manpower and technology should be used.

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Bibliography

Annual records and reports of Honda scooter showroom (2067/068 – 2069/070)

Annual records and reports of Mahindra scooter showroom (2067/068 – 2069/070)

Pant, Prem R. (2010). Business Environment in Nepal.Kathmandu, Buddha Academic

Enterprises: Kathmandu.

Pant, Prem R., Fieldwork Assignment and Report Writing, Buddha Publication:

Kathmandu.

Brooks, P. & Guppy, A. (1990), Driver Awareness and Motorcycle Accidents.

Acharya, Keeshor.(2010).Data Analysis and Modling, Asmita Publication:

Kathmandu.

http://en.wikipedia.org/wiki/mahindra_two_wheelers

www.honda2wheelersindia.com

http://en.wikipedia.org/wiki/dang_deukhuri_district

http://inventors.about.com/od/sstartinventions/ss/scooters.html

www.ekantipur.com/en/related-news/scooters-12867.html

www.mahindra2wheelers.com

33

Appendices

Photographs:

(Honda PCX 150 Scooter)

(Honda BeAt-FI CBS Scooters)

(Honda Spacy Scooters)