THESIS ON

A STUDY OF EMERGING TRENDS IN TWO-WHEELER MARKETS OF INDIA

WITH SPECIAL REFERENCE TO MOTORCYCLES

SUBMITTED BY:

MEGHA JAIN

ALUMNI ID NUMBER: TS12-M-166

BATCH: ISBE-B SS10-12/SM1

SUBMITTED TO:

PROF.CHARANPAL SINGH

i

ABSTRACT

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 favour 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. Furthermore, with increasing women working population, changing social

philosophy and broad-mindedness, the penetration of two-wheelers that is currently at

abysmally low level is expected to increase significantly going forward.

ii

TOPIC APPROVAL LETTER

ISBE –B     (SS 10-12 )

PROJECT THESIS TOPIC APPROVAL

Dear MEGHA JAIN,

 This is to inform you that the approved topic for project thesis is - “EMERGING TRENDS

IN TWO-WHEELER MARKET OF INDIA – WITH SPECIAL REFERENCE TO

MOTORCYCLES”.

This email is an official confirmation that you would be doing your project thesis work

genuinely and shall try to achieve the said objectives mentioned in the synopsis.

You must always use the thesis title as approved and registered with us.

Your project thesis id Number is TS12-M-166.

You are required to correspond with your Internal Guide MR.CHARANPAL SINGH

(charanpal.singh@iipm.edu) at regular intervals before sending the thesis final draft to him.

 

Regards,

  

Dipti Sharma

The Indian Institute of Planning and Management

dipti.sharma@iipm.edu

Phone: 011 – 42789995

iii

THESIS SYNOPSIS

Name Megha Jain

Batch ISBE-B, SS 10-12

Section SM-1

Contact no.

Email_id Ku.megha@gmail.com

Thesis Topic: A study of Emerging trends in two-wheeler markets of India with

special Reference to motorcycles

Specialization: Marketing

Introduction:

India is seeing the penetration of two –wheelers increasing at a rapid place driven by

the rise in the household incomes, reducing trend in excise duties & hitherto easy

availability of two-wheeler finance.

Research Objectives:

a. To view the satisfaction level of customers for two-wheelers industries.

b. To study the future of Motorcycles in Indian Market.

c. To study the consumer buying behavior regarding motorcycles.

d. Consumer Perception regarding brands

Research methodology:  

Secondary data – Internet, Newspapers, Books, Magazines etc.

Primary data- Tool used, Sampling method, sample size, Target Audience

iv

Questionnaires, Brands covered- Bajaj, Honda, TVS, Suzuki, Yamaha etc, Simple

random Sampling used, Sample size-200, respondent, Target Area- New Delhi

(Noida & Gurgaon)

Justification of choosing the topic:

As I am very passionate about bikes & love to go in automobile sector, as I feel by

doing this project work on motorcycle I will increase my knowledge more, practically

& it will benefit me in future.

Summer training details:

Topic: Studied the consumer buying Behavior of Godrej Appliances.

Company name: Godrej & boyce Mfg.co.ltd, Jaipur

Area of specialization: Marketing.

v

ACKNOWLEDGEMENT

The satiation and euphonies that accompany the success completion of a task would

be incomplete without a mention of people who made it possible. So, with massive

gratitude, I acknowledge all those, whose guidance and encouragement served as a

beacon light and crowned my effort with success.

It is entrenched fact that behind every achievement lays an unfathomable aquatic of

gratitude to those who have extended their support and without whom the project

would ever have come into existence.

I express my gratitude to IIPM, New Delhi for providing me an opportunity to work

on this thesis as a part of the curriculum.

I would also like to thank Prof. Charanpal Singh for his guidance and support for the

completion of my thesis project work.

vi

TABLE OF CONTENT

ABSTRACT...................................................................................................................ii

TOPIC APPROVAL LETTER.....................................................................................iii

SYNOPSIS....................................................................................................................iv

ACKNOWLEDGMENT...............................................................................................vi

TABLE OF CONTENTS.............................................................................................vii

INTRODUCTION .........................................................................................................1

INDUSTRY PROFILE..................................................................................................2

MAJOR PLAYERS IN THE INDUSTRY..................................................................19

RESEARCH OBJECTIVES……………………………………………………........25

RESEARCH METHODOLOGY.................................................................................26

DATA ANALYSIS……………………………………………..................................27

CONCLUSION………………………………………………………………............38

RECOMMENDATION………………………………………………………...........41

BIBLIOGRAPHY.................................................................................................... ...42

ANNEXURE................................................................................................................43

vii

LIST OF TABLES

TABLE 1 27

TABLE 2 28

TABLE 3 29

TABLE 4 30

TABLE 4 31

TABLE 5 32

TABLE 6 33

TABLE 7 34

TABLE 9 35

TABLE 10 36

TABLE 11 37

viii

LIST OF FIGURES

FIG 1 27

FIG 2 28

FIG 3 29

FIG 4 30

FIG 4 31

FIG 5 32

FIG 6 33

FIG 7 34

FIG 9 35

FIG 10 36

FIG 11 37

ix

INTRODUCTION

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.

Automobile is one of the largest industries in global market. Being the leader in

product and process technologies in the manufacturing sector, it has been recognised

as one of the drivers of economic growth. During the last decade, well¬-directed

efforts have been made to provide a new look to the automobile policy for realising

the sector's full potential for the economy. Steps like abolition of licensing, removal

of quantitative restrictions and initiatives to bring the policy framework in consonance

with WTO requirements have set the industry in a progressive track. Removal of the

restrictive environment has helped restructuring, and enabled industry to absorb new

technologies, aligning itself with the global development and also to realise its

potential in the country. The liberalisation policies have led to continuous increase in

competition which has ultimately resulted in modernisation in line with the global

standards as well as in substantial cut in prices. Aggressive marketing by the auto

finance companies have also played a significant role in boosting automobile demand,

especially from the population in the middle income group.

1

INDUSTRY PROFILE

The Indian Two Wheeler Industry

The Indian two wheeler sector contributes the largest volumes amongst all the

segments in automobile Industry. Though the segment can be broadly categorized in

to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced

in the market are a combination of two or more segments e.g. scooter and stepthru’s.

The market primarily comprises five players in the two wheeler segment with most of

the companies having foreign collaborations with well known Japanese firms earlier.

But with most of the companies now planning 100% subsidiaries in India.

In the last four to five years, the two-wheeler market has witnessed a market shift

towards motor cycles at the expense of scooters. In the rural areas, consumers have

come to prefer sturdier bikes to with stand the bad road conditions. In the process of

the share of motor cycle segment has grown from 48% to 58%, the share of scooters

declined drastically from 33% to 25%, while that of mopeds declined by 2% from

19% to 17% during the year 2007-08. All new vehicles are a now being replaced by 4

stock motorcycles. Reduced excise duties and fierce competition has led to a fall in

prices of certain models.

Hero, a name synonymous with two wheelers in India, began its journey around four

decades ago. Starting as a manufacturer of by cycle components, hero has today

grown into a multiunit, multi-product, geographically diversified group of companies.

The hero group began with simple Philosophy: to provide excellent transportation to

the common man, at a price he could easily afford. Even today the dream providing

the total satisfaction is all its sphere of activity. To consumers, in excellent products at

an affordable price; a thorough understanding the fast changing consumer

understanding the fast changing consumer behaviour, new market segment and

opportunities, and marketing mix sensitive changing customer needs from the core of

Hero’s marketing strategy and philosophy.

Hero Honda Motors Ltd. is one of the leading companies in the two wheeler Industry.

At present, it is segment with around 47% the market share during financial yr. 2000-

01. The company has emerged one of the most of successful players, much ahead of it

2

competitors by it superior and reliable product quality complemented with excellent

marketing techniques.

Hero Honda has been an early entrant in the 4-stroke segment of the two wheeler

industry. With a right mix of product styling and pricing the company has graped the

4-stoke market as compared to Bajaj Auto and TVS.

TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as

a low cost transportations and provide a tremendous potential is all parts of India.

However the company is likely to face threat Bajaj Auto Ltd (BAL) which continued

its price based competitions and Honda Motorcycle and Scooter Ltd. a new entrants in

the 2 wheeler market.

Infact the company has achieved excelled the Industry growth rates by a huge margin.

From April to December 2008 while the motor cycle industry sales were upto

38.68% TVS motor’s sales surged by a whopping 73.6% sat more importantly it is the

success of its model Victor.

Baja Auto has continued with its impressive performance witnessing significant

growth is the motor cycle and three wheeler segments. Based on the performance fill

data one can expect the company to meet it excellence by FY09.

Hero Honda is the largest player is the motorcycle segment. Focused on contemporary

design and style, the company has a compare leusine ranges bikes viz;

CD-100 DX

CD-100 SS

Splendor

Street Smart

Steek

CBZ

Passion

3

It splendor model is an urban centric with its fuel efficiency which accounts to over

60-70% of its sales. The passion launched in mid Jan. 2001 has a resending success

contributing to 26% of its sales.

TVS offers a wide ranges of two-wheelers motorcycles- Victor/Fiero/Max100/

max100R/Max DL.

Scooterette- TVS scooty

Moped- chap/XL/XL super/XL supper HD/sports.

TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of

India’s best selling scooterttes; TVS-scooty and 4-stroke version of the existing

moped line will be launched this year.

Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs.

It’s having 4-stroke single cylinder natural air cool the displacement of engine is

111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is having a

hydrometric disc brake in front wheel. “Flash” is an added future in the bike.

In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcycle

model, moped model, 3-three wheeler model.

But in the recent year Bajaj developed various model in the motorcycle segment

which providing good riding conditions is urban road as well as rater roads. Scooter-

cub/super/super FE/chetak/stride/Msl Priya.

Moped- Bajaj Sunny.

Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are.

Eliminator/Pulsor –180/Pulsor 150/Boxer/Caliber Crowa/Caliber

Sales performance of the player:

Hero Honda repeated a y-o-y growth of 6.3% is its motorcycle sales for the month of

Jan 2006 at 1,45,708 units. Export during the month have surged almost 64% y-o-y.

On a month –on-month basis the sales growth has been even higher up 16.5%.

4

MOTORCYCL

E

APRIL TO DEC

2009

APRIL TO DEC

2008

% CHANGE

INDUSTRY

SALE

2897842 2089637 38.68

INDUSTRY

SALE

1281342 1026102 24.85

MARKET

SHARE

44.21 49.11

Bajaj Auto: Bajaj auto has reported y-o-y growth of 19.8% in motorcycle sales for Jan

2006 at 75059 units. On a month-on-month basis the growth is 8.8%. Export

performance continues to be impressive with 10,089 two and three wheelers exported

in Jan 2006, a growth of 98.6% y-o-y.

Two wheeler sales for the current year are up 6.8%. The growth is driven sharply in

the motor cycle sales up to 37% in two wheeler segment, the share of motor cycle has

jumped from 52.8% to 67.8% during the current year. this sharp growth in the motor

cycle can be attributed to the positive response received by its need products and the

encouraging performance of select existing model.

SALES (UNITS) JAN 10 JAN 09 %

CHANG

E

APR-

JAN 10

APR-

JAN 09

%

CHAN

GE

SCOOTERS

(GEARED)

20211 30233 -33.15 235829 348700 -32.37

SCOOTER-

UNGEARED

4349 4333 0.37 56072 57686 2.80

STEPTHRU’S 4563 5810 -21.46 47636 59576 -20.04

MOTORCYCLE 75059 62640 19.83 717397 523508 37.04

TOTAL 2-

WHEELER

104182 103016 1.13 1056934 989470 6.82

THREE

WHEELERS

17426 14405 20.97 163359 132864 22.95

TOTAL 121608 117421 3.57 1220293 1122334 8.73

5

India is the second largest manufacturer and producer of two wheelers in the world. It

stands next only to Japan and China in terms of the number of two-wheelers produced

and domestic sales respectively. This distinction was achieved due to variety of

reasons like restrictive policy followed by the Government of India towards the

passenger car industry, rising demand for personal transport, inefficiency in the public

transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when

Automobile Products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers.

Finally, in 1960, it set up a shop to manufacture them in technical collaboration with

Piaggio of Italy. The agreement expired in 1971.

In the initial stages, the scooter segment was dominated by API, it was later

overtaken by Bajaj Auto. Although various government and private enterprises

entered the fray for scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India.

It was a complete seller market with the waiting period for getting a scooter from

Bajaj Auto being as high as 12 years.

The Motorcycles segment was no different, with only three manufacturers viz Enfield,

ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the

Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by

Enfield 350cc bikes and Escorts 175cc bike.

The two wheeler market was opened to foreign competition in the mid-80s. And the

then market leaders- Escorts and Enfield were caught unaware by the onslaught of the

100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel

efficient low power bikes, demand swelled, resulting in Hero Honda then the only

producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and

Hero Honda brought in the first two-stroke and four –stroke engine motorcycles

respectively. These two players initially started with assembly of CKD kits, and later

6

on progressed to indigenous manufacturing. In the 90s the major growth for

motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of

nearly 25% CAGR in the last five years.

The Industry had a smooth ride in the 50s, 60s and 70s when the Government

prohibited new entries and strictly controlled capacity expansion. The industry saw a

sudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a

peak volume of 1.9mn vehicles in 1990.

The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in

providing ease of use to the scooter owners. This helped in inducing youngsters and

working women, towards buying scooters, who were earlier inclined towards moped

purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In

line with this, the scooter segment has consistently lost its part of the market share in

the two-wheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a

decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4 mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in

FY93 and FY94. Hero Honda showed a marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in fuel prices, high

input costs and reduced purchasing power due to significant rise in general price level

and credit crunch in consumer financing. Factors like increased production in 1992,

due to new entrants coupled with the recession in the industry resulted in companies

either reporting looses or a fall in profits.

India is one of the very few countries manufacturing three- wheelers in the world. It is

the world’s largest manufacturer and seller of three-wheelers. Bajaj Auto commands a

monopoly in the domestic market with a market share of above 80%, the rest is shared

by Bajaj Tempo, Greaves Ltd and Scooters India.

The total number of registered two wheelers and three-wheelers on road in India, as

on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population

has almost doubled in 1996 from a base of .6mn in 1990.

7

Automobile Industry in India TVS Centra crosses an astounding 20,000 sales mark in

40 days Hosur, March 6, 2006: TVS Motor Company today announced that the sales

of TVS Centra, powered by the indigenously developed Variable Timing Intelligent

(VT-i) engine technology crossed 20,000 units in just 40 days since its launch in mid

January 2004, the best ever clocked by any new product from the TVS Motor

Company stable. This achievement is expected to spiral the overall growth of TVS

Motorcycles sales in the coming months.

The impressive sales figures reflect the customer's faith in the technological capability

of TVS Motor Company to fully live up to its promise of delivering a world-class

product at an affordable price. Due to excellent customer feedback across the country,

TVS dealers are being pressurised with enquiries on the new 100 CC 4 Stroke Centra

and its revolutionary VT-i engine technology. Having caught the public's imagination,

TVS Centra has fully lived up to its promise of a 'Fill it Once a Month Bike' where a

full tank of petrol lasts for a month based on the average use of motorcycle customers.

A panel of leading auto experts in India, after having tested TVS Centra, have

endorsed the fact that it was the 'best in its class' and also commended TVS Motor

Company on its technology prowess and innovation.

TVS Centra is powered by VT-i engines which are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental

actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction.

Added to its technological edge are features that include attractive price, fuel

efficiency, low maintenance, contemporary style, ride comfort and backed by TVS

Motor Company's reliability, making it truly the preferred two-wheeler in its class.

Chennai, January 5, 2004: India's leading two wheeler major, TVS Motor Company's

commitment to produce the best technology in its products for its customers has led to

the launch of TVS Centra with Variable Timing intelligent engines

(VT-i), a 100 CC 4 Stroke motorcycle targeted at the Popular Segment.

This revolutionary new VT-i engine technology, developed indigenously by TVS

Motor Company, inbuilt into TVS Centra will make it the most fuel-efficient

8

motorcycle in the Country. It will be rightfully called as the 'Fill it Once a Month

Bike' where a full tank of petrol will last for a month based on the average use of

motorcycle customers.

The VT-i Engines by TVS Motor Company will go down in the history of the

Automobile Industry in India as one of the most innovative technology

developed indigenously. The VT-i engines are designed to deliver superb

performance on fuel efficiency and torque delivery based on three fundamental

actions namely variable ignition timing and superior combustion of fuel, friction

reduction and fuel wastage reduction. This action facilitates deceleration fuel cut off,

faster warm up of the Engine and has four curve ignition mapping

Like all TVS Motor Company products, TVS Centra too has been engineered and

designed keeping in mind extensive customer feedback and changing customer needs.

TVS Centra will be the first motorcycle in India that will bundle price, mileage,

maintenance, style, reliability, power, ruggedness and ride comfort making it truly a

value for money personal transportation two-wheeler. Those who want all these

performance attributes in a commuter motorcycle at a great price; nothing will beat

the TVS Centra for all the advantages it offers.

TVS Centra is built around to give a mileage that will offer atleast 10 per cent more

than any other motorcycle in the country, today. It will be powered by 7.5 Brake

HorsePower (Bhp) at 7250 RPM making it the most powerful motorcycle in its class.

TVS Centra will also be known for its nimble handling and riding comfort enabling

easy maneuvering even in busy city traffic. Its contemporary style with big muscular

tank and well-rounded looks with a horizontal engine and superior ergonomics will

mark a new standard in the popular segment of two wheelers. It will come with

Econometer to keep a check on the mileage / power ratio, wide and skid free seat and

Utility space.

Victor the Saviour

TVS launched Victor 110 cc model in September 2001, with leading cricketer Sachin

Tendulkar as the brand ambassador the model has proved to be a big success. The

success of TVS Victor is especially significant because it was developed with

indigenous technology.

9

Two stroke Max Range – On the way out

The company is currently looking forward to phase out its two stroke Max range,

which is perceived to be less fuel efficient with a new four stroke range. The change

over is expected to take place by the end of June 2010.

Two new launches could out TVS on a high growth trajectory

TVS Centra

TVS Centra a new 100 cc model has recently been launched and the company has set

ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per

month.

Also, a new upgraded 125 cc TVS Victor has been launched which will improve the

trajectory of the company.

Three Wheeler Project- Entering A New Market

TVS Motor has set the stage for entry into the three-wheeler markets with the setting

up of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the

company would be targeting the sub-one ton passenger and goods carriers segment of

the market.

With an investment of about Rs 50 crore in phase-1, it will cater to both passenger

and cargo segments. The total investments for the three wheeler and four-wheeler

quardricycle project are expected to be in the range of Rs 500 crore in the next two-

three years. It plans to go with petrol version of three wheelers and expects higher

demand to come from B class towns. The company expects higher margin and low

competition in three-wheeler business as compared to its two-wheeler business. Three

wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units

FY 03, and are expected to grow at the same rate for the next five years. TVS is

expected to roll out its first three-wheeler by the end of FY05 to garner a 30% market

share with around 100,000 unit sales by the end of FY08.

Three-Wheeler Market Scenario

These are two main segments in the Indian passenger three -wheeler markets are:

10

Number of seats including driver not exceeding 4 and maximum max not

exceeding 1 tonne.

Number of seats including driver excluding 4 but not exceeding 7 max mass

not exceeding 1.5 tonnes.

The three-wheeler goods carrier segments are:

Maximum mass not exceeding 1 tonne Others.

Around 95% of the three-wheeler sold in India belong to the smaller vehicles category

in which Bajaj Auto is the major player and has around 90% market share. The other

players in the segment are Atul Auto and Piaggio group, Italy.

Similarly, in the three-wheeler segment, domestic sales of the goods carrying variety

grew a whopping 46.95%. This growth in 2006-07 could have possibly come from

two factors.

The increasing number of cities whose corporations have legislated that larger

goods carrier, like trucks be kept out for logistics purpose.

The increase in the number of offerings in this category, especially from

companies such as Mahindra & Mahindra and Piaggio vehicles pvt. Ltd.

Quardricycle-A new introduction in the Indian market

There is a new challenger emerging in the Quardricycle segment. These new vehicles

could impact on the entry level sales. These new vehicle could impact on the entry

level sales. Quardricycles are three wheelers converted into four wheelers by using, a

column axle. All the major three-wheeler units have prepared Quardricycles

prototypes.

Plans setting up manufacturing units in Indonesia / Vietnam

TVS motor is actively looking to set up a foothold in the south east Asian markets and

has made top level visits to Indonesia & Vietnam. Indonesia is the third largest two-

wheeler market in the world with an estimated size this year of two million units.

Presently in Indonesia there is one motorcycle for every 15 people, in Vietnam one

for every seven people. Further in Indonesia forty million households, representing

86% of the total not having a motorcycle.

11

Merger of engine components Division of Lakshmi Auto components with TVS

Motor:

TVS motor would merge engine component division of Lakshmi Auto Component

Ltd. (LAC) and investments and other assests with itself and the dwap ratio has been

fixed at once phase of TVS motor for every seven share held as consideration for the

merger. Presently TVS motor holds 66.5% of equity capital of LAC, which would be

cancelled. Around 66% of LAC’s sales come from the engine components division,

mode of which is currently being sold to TVS motor. LAC’s total net sales in HI FY

09 were Rs. 69 crore and made anet profit of Rs. 10.5 crore..

The Plastics and Rubber components division of LAC will be transferred to the

wholly owned subsidiary company, Sundaram Auto Components Ltd. The total

consideration on slump – sale based is Rs. 12.25 crore.

Strong focus on R&D

The company has put in place a strong R & D team consisting 400 engineers & is

spending about 3% of its turnover on R & D every year and has in the process setup a

strong world class facility for product design and development. During 2006-07, the

company applied for 16 patents & published five technical research papers in

international conference. Modified research projects are carried in association with

leading international research labs and Indian institutes. R & D as percentage of sales

in expected to increase from 1.5% in FY o2 to 3.2% in FY 09.

Valuation

The company’s valuations are dependent on five events:

Current four businesses grow at the normal industry growth rates.

New product launches achieve their targets and are well accepted by the

market.

Three wheeler foray achieve targeted volume in the desired rates of return on

capital employed.

Quadricycle foray achieve the desired rate of return on the capital employed.

Overall investment returns.

12

In TVS motor company VICTOR is the most popular bike and very

interestingly without any media interaction FIERO F2 has taken the 2nd spot

with CENTRA on the 3rd spot which has taken a lead with only one place

from MAX-R .It is recommended that FIERO F2 should be given equal sales

promotion than CENTRA because of its popularity has come through people

network and not through channel media.

The respondents have liked the service facility and the staff but the important factor is

the lack of space. The dealership in DELHI has to improve the staff as well as the

after sales services and the customer relations.

With the Indian Government clearly outlining the rules for the trade, the arena now

remains restricted to scooters, mopeds, and above 250 cc motorcycle segments. The

portion of the market that directly stands exposed to competition measures around 42

percent in unit terms.

Two and three-wheelers sector was the first to be de-controlled from the clutches of

government regulations. This has resulted in the entry of world majors and subsequent

in technology and equity participation with Indian players. This has lead to

technology revolution for the two-wheelers in 1980's.

The regulation of safety of the rider is controlled by state government notifications,

these vary in different states. For example helmets are compulsory for two-wheeler

riders in New Delhi and some other states. The same is optional in Maharashtra and

Karnataka.

India is the 2nd largest manufacturer and producer of two wheelers in the world. It

stands next only to Japan and China in terms of the no. of two wheelers produced and

domestic sales respectively. This distinction was achieved due to variety of reasons

like restrictive policy followed by the government of India towards the passenger car

industry, rising demand for personal transport, in efficiency in the public terms

partition system etc.

The Indian two wheeler industry made a small beginning in the early 50’s when

automobile products of India (API) started manufacturing scooters in the country.

Until 1958 API and infield were the sale producers.

13

In 1948 Bajaj Auto began trading in imported Vespa scooters and three wheelers.

Finally in 1960 it set up a shop to manufacture them is teachable collaboration with

piaggio of Italy. The agreement expired in 1971.

In the Initial stages, the scooter segment was dominated by API, it was later over

taken by Bajaj Auto. Although various government and private enterprises entered the

tray of scooters, the only new player lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India.

It was a complete seller market waiting period for getting a scooter from Bajaj Auto

being as high as twelve years

The motor cycle segment was no different, with only three manufacturers Viz infield,

Ideal Jawa and escorts. While Enfield bullet was a for stroke bike, Jawa and Rajdoot

were two stroke bikes. The motor cycle segment was initially dominated by Enfield

350cc bikes and Escort 175cc bike.

The two wheeler market was open to foreign competition in the mid-80s. And the

then market leaders- Escorts and Enfield were caught unaware by the onslaught of the

100cc bikes of the four Indo-Japanese joint venture. With availability of fuel efficient

low power bikes, demand swelled, resulting in Hero-Honda then the only producer of

four stroke bikes (100cc category), gaining a top slot.

The first Japanese motor cycle were introduced in the early eighties. TVS Suzuki and

Hero Honda brought in the first two stroke and four stroke engine motorcycle

respectively. These two players initially started with assembly of CKD Kits, and latter

on progressed to indigenous manufacturing. In the 90s the major growth for

motorcycle segment was brought in by Japanese motor cycles, which grew at a rate of

nearly 25% company’s annual growth rate in the last five years. The industry had a

smooth ride in the 50s, 60s and 70s when the government prohibited new entries and

stretchy controlled capacity expansion. The industry saw a sudden growth in the 80’s.

The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm

vehicle in 1990.

The entry of kinetic Honda scooter helped in providing case of use to the scooter

owners. This helped in including youngster and working women, towards buying

scooters, who were earlier inclined towards moped purchases. In the 90s, this travel

14

was reversed with the introduction of scooterettes. In line with this the scooter

segment has consistently lost its part of the market share in the two wheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. this resulted in a

decline of 15% in 1991 and 8% in 1992 resulting in a production loss of 0.4 mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in

FY93 and FY 194. Hero Honda showed a marginal decline in 1992.

The reason for recession in the scooter were the incessant rise in fuel price, high input

costs and reduced purchasing power due to significant rise in general price level and

crunch in consumer financing. Factors like increased production in 1992, due to new

entrants coupled with the recession in the industry resulted in companies either

reporting looses or a fall in profits.

India is one of the very few countries manufacturing three wheelers in the world. It is

the world’s largest manufacturer and seller of three-wheelers. Bajaj auto commands

a monopoly in the domestic market with a market share of above 80% the rest in

shared by Bajaj Tempo, Greaves Ltd and scooters India.

The total no of registered two wheeler and three-wheelers on road in India, as on

March 31, 1998 was 27.9 mn and 1.7mn respectively. The two wheeler population has

almost doubled in 1996 from a base of .6 mn in 2000.

The field of consumer behaviour is so dynamic which we have to keep in mind that

behaviour of consumer is committed to the “sprit of diversity” i.e. the diversities of

new points (distinctive theories and concept), diversity of focus (strategic vs

consumer), diversity of methods (qualitative vs quantitative).

People differ not only is the usual ways by age and gender, by race and nationality, by

education and occupation, by marital status and living arrangements but also in their

activities and interest, their preference and opinions.

As true believers in marketing concept we have tried our best to focus the needs, and

behaviour of consumers by providing a readable text that clearly explains the relevant

concepts upon which the discipline of consumer behaviour is based, and demonstrate

how consumer behaviour concepts are used by marketing practitioner to develop and

implement effective marketing strategies.

15

In this project I have tried to demonstrate how individual consumer behaves in

purchase particular brand of motor bike. Their pre-purchase behaviour, then decision

to purchase and then past purchase action; marketing mix strategy adopted by the

player keeping in view of pattern of consumer behaviour is main aspect in my work.

In this way I have made highlight the historical background as well as their product

development according to the need of the customer.

Consumer lay a vital role in the health of economy because their decisions effects the

demand, production and the success of some industries and failure of other. Thus the

consumer behaviour is an integral factor and flow of all business in consumer oriented

society.

HISTORICAL DEVELOPMENT OF MAJOR PLAYER

India is the 2nd largest manufacturer and producer of two wheelers in the world. It

stands next only to Japan and China in terms of the no. of two wheelers produced and

domestic sales respectively. This distinction was achieved due to variety of reasons

like restrictive policy followed by the government of India towards the passenger car

industry, rising demand for personal transport, in efficiency in the public terms

partition system etc.

The Indian two wheeler industry made a small beginning in the early 50’s when

automobile products of India (API) started manufacturing scooters in the country.

Until 1958 API and infield were the sale producers.

In 1948 Bajaj Auto began trading in imported Vespa scooters and three wheelers.

Finally in 1960 it set up a shop to manufacture them is teachable collaboration with

piaggio of Italy. The agreement expired in 1971.

In the Initial stages, the scooter segment was dominated by API, it was later over

taken by Bajaj Auto. Although various government and private enterprises entered the

tray of scooters, the only new player lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India.

It was a complete seller market waiting period for getting a scooter from Bajaj Auto

being as high as twelve years

16

The motor cycle segment was no different, with only three manufacturers Viz infield,

Ideal Jawa and escorts. While Enfield bullet was a for stroke bike, Jawa and Rajdoot

were two stroke bikes. The motor cycle segment was initially dominated by Enfield

350cc bikes and Escort 175cc bike.

The two wheeler market was open to foreign competition in the mid-80s. And the

then market leaders- Escorts and Enfield were caught unaware by the onslaught of the

100cc bikes of the four Indo-Japanese joint venture. With availability of fuel efficient

low power bikes, demand swelled, resulting in Hero-Honda then the only producer of

four stroke bikes (100cc category), gaining a top slot.

The first Japanese motor cycle were introduced in the early eighties. TVS Suzuki and

Hero Honda brought in the first two stroke and four stroke engine motorcycle

respectively. These two players initially started with assembly of CKD Kits, and latter

on progressed to indigenous manufacturing. In the 90s the major growth for

motorcycle segment was brought in by Japanese motor cycles, which grew at a rate of

nearly 25% company’s annual growth rate in the last five years. The industry had a

smooth ride in the 50s, 60s and 70s when the government prohibited new entries and

stretchy controlled capacity expansion. The industry saw a sudden growth in the 80’s.

The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm

vehicle in 1990.

The entry of kinetic Honda scooter helped in providing case of use to the scooter

owners. This helped in including youngster and working women, towards buying

scooters, who were earlier inclined towards moped purchases. In the 90s, this travel

was reversed with the introduction of scooterettes. In line with this the scooter

segment has consistently lost its part of the market share in the two wheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. this resulted in a

decline of 15% in 1991 and 8% in 1992 resulting in a production loss of 0.4 mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in F\

Y93 and FY 194. Hero Honda showed a marginal decline in 1992.

The reason for recession in the scooter were the incessant rise in fuel price, high input

costs and reduced purchasing power due to significant rise in general price level and

crunch in consumer financing. Factors like increased production in 1992, due to new

17

entrants coupled with the recession in the industry resulted in companies either

reporting looses or a fall in profits.

India is one of the very few countries manufacturing three wheelers in the world. It is

the worlds largest manufacturer and seller of three-wheelers. Bajaj auto commands a

monopoly in the domestic market with a market share of above 80% the rest in shared

by Bajaj Tempo, Greaves Ltd and scooters India.

The total no of registered two wheeler and three-wheelers on road in India, as on

March 31, 1998 was 27.9 mn and 1.7mn respectively. The two wheeler population has

almost doubled in 1996 from a base of .6 mn in 2000.

18

MAJOR PLAYERS IN THE INDUSTRY

BAJAJ AUTO

Companies like Bajaj Auto, which have a major presence in the geared scooter

segment are trying to milk what remains of a shrinking market. Their strategy will be

include starting hire-purchase schemes in areas with a population of above 100,000 in

the traditional scooter market of the north. Secondly, Bajaj will also plan product

specific strategies. The aim would be to excite the buyer by giving him something

new in terms of features, technology, specifications and aesthetics. One such effort in

this direction was the 4-stroke 'Chetak' scooter with higher fuel efficiency (70 km/ltr)

than a traditional 2-stroke one. Another model to be introduced later will be called

'Fusion' with a metallic finish and good power. The company seems confident that the

traditional markets for scooters like Punjab, Delhi etc will for the foreseeable future

stick to geared scooters as the product has come to signify a certain value proposition

which will be difficult to beat by other kinds of two-wheelers.

Taking into account the various factors, we expect sales in the geared scooter segment

to fall by around 20%yoy in FY01 while that of the scooterette segment to grow by

around 30%yoy.

With a four – stroke 111.6 cc engine and Maximum Net Power of 7.7 HP, and a keep

weight of 101 kg, Bajaj Calibre is capable of proving a tough competitor to Hero

motor corp. ‘Passion’.

19

HERO MOTOR CORP.

Hero motor corp. Motors Ltd (HHML) has launched a new 100cc motorcycle named

`Passion'. The company has said that the new two-wheeler will incorporate enhanced

functionality along with HHML's combined strengths of riding comfort and fuel

efficiency.

This bike has been specially designed, keeping in mind contemporary styling,

functionality and safety. With a four-stroke 100cc engine, power of 7.5 PS at 8,000

rpm, and a kerb weight of 116 kg, Passion is a combination of style and fuel

efficiency.

The most striking feature of this brand lies in its being endowed with a wide range of

attractive, catchy choices for its buyers. To put it straight, it will be available in six

colours and would give 60 to 65 km per litre under city riding conditions. HHML has

also said that the new bike meets not just the current emission norms, but also has a

specially-designed silencer to meet the expected noise norms.

The vehicle was launched recently in a dealer conference in Agra, late last week. The

company is targetting sales of the new bike from the younger generation.

The product offerings from Hero motor corp. include the CD 100, CD 100SS, the

Splendor, Street Smart and CBZ, in addition to the new bike.

HHML has a market share of 47 per cent in motorcycles. There are over four million

Hero motor corp. motorcycles on the road currently.

HHML is also the largest producer of motorcycles among all Honda companies in the

world. Splendor is the single largest selling two wheeler model worldwide.

The company is expected to achieve over Rs 3,000 crore as turnover and cross the

one-million motorcycles mark in the current financial year.

20

TVS MOTOR COMPANY

TVS Motor Company is the third largest two-wheeler manufacturer in India and one

among the top ten in the world, with annual turnover of more than USD 1 billion in

2008-2009, and is the flagship company of the USD 4 billion TVS Group.

TVS Motor Company - Mission

We are committed to being a highly profitable, socially responsible, and leading

manufacturer of high value for money, environmentally friendly, lifetime personal

transportation products under the TVS brand, for customers predominantly in Asian

markets and to provide fulfilment and prosperity for employees, dealers and suppliers.

Vision Statement

TVS Motor - Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core

competence and profitability. TVS Motor will provide total customer satisfaction by

giving the customer the right product, at the right price, at the right time.

TVS Motor - The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and

one among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian markets,

capitalizing on the expertise developed in the areas of manufacturing, technology and

marketing. The thrust will be to achieve a significant share for international business

in the total turnover.

21

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant

benchmarking against international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by

adopting TQM as a way of life. TVS Motor believes in the importance of the process.

People and projects will be evaluated both by their end results and the process

adopted.

TVS Motor - The Human Factor

TVS Motor believes that people make an organization and that its well-being is

dependent on the commitment and growth of its people. There will be a sustained

effort through systematic training and planning career growth to develop employees

talents and enhance job satisfaction. TVS Motor will create an enabling ambience

where the maximum self-actualisation of every employee is achieved. TVS Motor

will support and encourage the process of self-renewal in all its employees and

nurture their sense of self worth.

TVS Motor - Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental

aspects with all business activities and ensure protection of employees and

environment including development of surrounding communities. TVS Motor strives

for long-term relationships of mutual trust and interdependence with its customers,

employees, dealers and suppliers.

22

YAMAHA MOTOR PVT. LTD.

About India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50

joint-venture with the Escorts Group in 1996. However, in August 2001, Yamaha

acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd,

Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to

become a joint-investor in the motorcycle manufacturing company "India Yamaha

Motor Private Limited (IYM)".

IYM operates from its state-of-the-art manufacturing units at Surajpur in Uttar

Pradesh and Faridabad in Haryana and produces motorcycles for both domestic and

export markets. With a strong workforce of more than 2,000 employees, IYM is

highly customer-driven and has a countrywide network of over 400 dealers. Presently,

its product portfolio includes VMAX (1,679cc), MT01 (1,670cc), YZF-R1 (998cc),

FZ1(998cc), YZF-R15 version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ16

(153cc), SZ-R(153cc), SZ & SZ-X (153cc), SS125 (123cc), YBR 125 (123cc), YBR

110 (106cc) and Crux (106cc).

VISION

We will establish YAMAHA as the "exclusive & trusted brand" of customers by

"creating Kando" (touching their hearts) - the first time and every time with world

class products & services delivered by people having "passion for customers".

MISSION

We are committed to:

Be the Exclusive & Trusted Brand renowned for marketing and manufacturing of

YAMAHA products, focusing on serving our customer where we can build long term

relationships by raising their lifestyle through performance excellence, proactive

23

design & innovative technology. Our innovative solutions will always exceed the

changing needs of our customers and provide value added vehicles.

Build the Winning Team with capabilities for success, thriving in a climate for action

and delivering results. Our employees are the most valuable assets and we intend to

develop them to achieve international level of professionalism with progressive career

development. As a good corporate citizen, we will conduct our business ethically and

socially in a responsible manner with concerns for the environment.

Grow through continuously innovating our business processes for creating value and

knowledge across our customers thereby earning the loyalty of our partners &

increasing our stakeholder value.

24

RESEARCH OBJECTIVES

a. To view the satisfaction level of customers for two-wheelers industries.

b. To study the future of Motorcycles in Indian Market.

c. To study the consumer buying behavior regarding motorcycles.

d. Consumer Perception regarding brands.

25

RESEARCH METHODOLOGY

Research Methodology has many dimensions, it include not only research methods

but also considers the logic behind the methods used in the context of the study and

explains why only a particular method of technique had been used so that research

lend themselves to proper evaluations. Thus in a way it is a written game plan for

concluding research therefore in order to solve research problem it is necessary to

design a research methodology for the problem as the same differ from problem to

problem.

Research Design:

The research design is a pattern or an outline of a research project . It is a statement

only the essential of a study those provide the basic guidelines for the detail of the

project. The present study being conducted follows a descriptive research design has

the data would be responses from a simple containing g a large numbers of sources .It

is a cross section of the situation design of the descriptive studies including the nature

and the analytical method.

Data Collection

Secondary data – Internet, Newspapers, Books, Magazines etc.

Primary data- Tool used, Sampling method, sample size, Target Audience

Questionnaires,

Simple random Sampling used, Sample size-200 respondent, Target Area- New Delhi

(Noida & Gurgaon)

26

DATA ANALYSIS AND FINDINGS

1. MOTOR BIKE USERS AGE GROUP

TABLE 1

AGE PERCENTAGE (%)

14-18 20

18-25 60

25-35 15

ABOVE 35 5

FIGURE 1

20%

60%

15%

5%

14-18

18-25

25-35

Above 35

27

2. PURPOSE OF PURCHASE OF BIKE?

TABLE 2

COMMUNICATING TO OFFICE 39%

COMMUNICATING TO COLLEGE 25%

MAINTAINS FRIENDS 14%

OTHER PURPOSE 22%

FIGURE 2

39%

25%14%

22%

Communicating to OfficeCommunicating to CollegeMaintains FriendsOther purpose

28

3. MARKET SHARE OF BIKE?

TABLE 3

HERO HONDA 40%

BAJAJ 32%

SUZUKI 12%

YAMAHA 11%

OTHERS 5%

FIGURE 3

40%

32%

12%11%

5%Hero Honda

Bajaj

Suzuki

Yamaha

Others

29

4. BRAND AWARENESS MEDIUM?

TABLE 4

TV 38%

NEWSPAPER 25%

WORD OF MOUTH 23%

DEALER EFFORT 9%

OTHERS 5%

FIGURE 4

38%

25%

23%

9% 5%

TV

Newspaper

Word of mouth

Dealer effort

Others

30

5. PURCHASE INFLUENCER

TABLE 5

QUALITY & FEATURE OF PRODUCT 15%

PRICE 10%

EASE OF AVAILABILITY 15%

BRAND IMAGE OF THE PRODUCT 24%

AFTER SALES SERVICE 32%

VALUE OF MONEY 4%

FIGURE 5

15%10%

15%

24%

32%4%

Quality & feature of product

Price

Ease of availability

Brand image of the product

After sales service

Value of money

31

6. PHYSICAL FEATURES THAT EFFECTS MOST?

TABLE 6

LOOKS 35%

BODY BUILDS 25%

STYLE 22%

ROBUSTNESS 18%

FIGURE 6

35%

25%22%

18%

Looks

Body builds

Style

Robustness

32

7. PAYMENT MODE FOR PURCHASES

TABLE 7

ONE TIME PAYMENT 15%

FINANCIAL OPTION 65%

EXCHANGE OFFER 12%

OTHERS 8%

FIGURE 7

15%

65%

12%8%

One time payment

Financial option

Exchange offer

Others

33

8. TECHNOLOGICAL FEATURES EFFECT BUYING?

TABLE 8

POWER - ECONOMY MODE 22%

MILEAGE 48%

FOUR STROKE ENGINE 18%

OTHER 12%

FIGURE 8

22%

48%

18%12%

Power - economy mode

Mileage

Four stroke engine

Other

34

9. PURCHASE MADE FROM

TABLE 9

AUTHORIZED DEALER 47%

NEAR BY DEALER 33%

ONLINE 13%

OTHER 7%

FIGURE 9

47%

33%

13%7%

Authorized dealer

Near by dealer

Online

Other

35

10. BETTER AFTER SALES SERVICE BRAND?

TABLE 10

BAJAJ CALIBER 18%

PASSION 24%

TVS VICTOR 28%

AMBITION 25%

OTHERS 9%

FIGURE 10

17%

23%27%

24%9%

Bajaj Caliber

Passion

TVS Victor

Ambition

Others

36

11. BIKE PREFER IN FUTURE PURCHASE?

TABLE 11

CALIBER 22%

PULSAR 15%

PASSION 27%

AMBITION 29%

OTHER 7%

FIGURE 11

37

22%

15%27%

29%

7%Caliber

Pulsar

Passion

Ambition

Other

CONCLUSION

The motorcycle industry had a perceptible shift from a buyer market to the seller

market with the variety of choices. Now the customer even has a plethora of choices

to choose the best-suited requirement. All the players, weather be it HHML, Yamaha

or any other will have to compete on the basis of many things like attributes,

reliability and so on. There is no doubt in the fact that Hero Honda Company rules the

motorcycle industry and has a good brand name, but the company will certainly have

to initiate some efforts. The company has then highest market share in the motorcycle

industry and maintaining such a good share will pose a challenge to the company. The

company is doing very well in the business. According to me, no other company can

beat this company in the years to come because of its strong brand name in the

market. This company would be successful in the years to come as the company has

good amount of brand loyal customers. When there is talk of bike, the first thing that

comes to mind is Hero Honda because of strong brand image. In our study the main

emphasis was towards the marketing mix elements (Product, Place, Price and

Promotion). The analysis is totally based on the marketing mix elements. Further for

analyzing the market share of the company properly; a survey was conducted which

also forms a part of the findings.

The two-wheelers market has had a perceptible shift from a buyers market to a sellers

market with a variety of choices. Players will have to compete on various fronts viz

pricing, technology, product design, productivity, after sale service, marketing and

distribution. In the short term, market shares of individual manufacturers are going to

be sensitive to capacity, product acceptance, pricing and competitive pressures from

other manufacturers

The segments, motorcycles have witnessed capacity additions in the last one-year and

it will continue in the upcoming period as and when Honda opens a local subsidiary.

Over this period, only the motorcycle segment is expected witness higher demand vis-

à-vis supply, while the scooters and mopeds supply will outstrip demand.

As incomes grow and people feel the need to own a private means of transport, sales

of two-wheelers will rise. Penetration is expected to increase to approximately to

more than25% by 2010.

38

The motorcycle segment will continue to lead the demand for two-wheelers in the

coming years. Motorcycle sales is expected to increase by 20%yoy as compared to

1% growth in the scooter market and 3% by moped sales respectively for the next

two-years

The four-stroke scooters will add new dimension to the two-wheeler segment in the

coming future. Perhaps, the moped segment will be the worst affected due to Y2K

emission norms applicable from April 2002 as not many of the present models

confirm to the norms

The three-wheeler segment will witness 10%yoy growth for the next two years. In

spite of entry of Piaggio, Italy into the three-wheeler segment in the country, Bajaj

Auto will continue to dominate the segment. In this segment, we would see players

shifting from diesel to cleaner fuels like CNG in line with norms set out by various

state governments.

On surveying hero Honda globalization, it was found that the competetion & price

where preferred in the bike comparison with other company. Serviceman and

businessman both like this Hero Honda bike, Mileage,4-stroke,4-gear&11.0 BHP.

Opinions are all most same. In my survey I found that there are only 05% bike

exports to outside India

JOURNEY SO FAR

Indian companies had relied heavily on their foreign counterparts for technical

support, design of the model etc., while they provided the distribution and branding in

the Indian market. Now that the international market for motorcycles is fairly

developed and consumers are well aware, most of these foreign manufacturers are

planning to enter the market on their own. The inadequacy of the public transportation

system, the upwardly mobile middle class, which has the disposable income and the

intent to own a two-wheeler and the sheer size of the Pakistan,bangladeshand srilanka

market is proving to be an attractive factor to many multinational companies. India's

two-wheeler industry is the second largest market in the world after China. Honda

Motors, whose tie-up with Hero-Honda is going to expire soon, has already entered

the fray with Honda-Activa. Others are also queuing up.

Yamaha Corporation, which was operating in India through a joint venture with

Escorts Group, had decided to call it quits in mid-2001 by buying off Escorts' 50

39

percent share in the joint venture. Yamaha now plans to tap the Indian market on its

own with models such as RX-135, RXZ, YBX125, YD125, and ACE. Its name has

become fairly established while the joint venture had been in operation for two

decades. On its own now, Yamaha has started implementing its ambitious plans for

the Indian market and has embarked on a challenge 21 project, a time-bound initiative

that is aimed at reorienting and revitalizing the entire Indian operations in order to

achieve a competitive edge. Yamaha has set for itself the target of capturing 21

percent of motorcycle market by 2005. India is one of the few countries where

Yamaha, the world's second largest motorcycle manufacturer operates a fully-owned

subsidiary.

40

RECOMMENDATION

There are no two opinions that the automobile industry is faring very well in the

Indian market since the early 90’s.However it can perform better in the market of it

o The first recommendation is obviously about the customer care. Presently the

company has a customer relation department but it has to be made stronger

and more service provider to help the customers.

o The distribution network should be made stronger so that the customers don’t

feel dissatisfied for services, sales, and stocks.

o This is age of customer delight and the company should not forget that

“customer is the king”

o Everywhere there is a game of production and volumes, the company that

produces more can save more and prices could be made more competitively

o The company should always go for quality

o The R & D base should be made stronger as the level of indigestion should

come down.

After doing market research I would like to suggest or recommend to the Company

that there are certain outcomes of research, which followed through the formal and

informal procedure during the research. Thus we are bound to draw the attention of

Company to certain points which are ought to be perceived by the Company with full

care.

1. Publicity and advertisement should be broad, because competition is more.

2. Size and weight of bike should be match with their C.C.

3. Company should follow worldwide strategies for increasing their global

revenue.

4. Bike should have stepping facility which may help during critical situation.

5. Company should provide promotional schemes to the customers.

6. All the protective parts of wheels should make of plastic and leg guard also be

strong.

7. Now Company is required to recover the faith of customers towards the brand

image.

8. Company should improve the mileage of the Bikes.

9. Prices of the Bike must be set as it can be approved by major part of the

population.

41

BIBLIOGRAPHY

1. Phillip Kottler “Marketing management” (Prentice-Hall of India Pvt.).

2. Harper W. Bayd, Ralph West Fall, and Stanley F. Stasch “Marketing research

(AITBS Publisher 7th ed. 2001).

3. A.G. Sawyer and Davied J Howard, Journal of Marketing research 1999.

4. consumer Behaviour by Leon G. Schiffman and Leslie Lazar Kanuk (Fifth

edition)

5. Research Methodology by C.R. Kothari (Second Edition)

6. Business world and Business India magazine.

7. Auto India Magazine for two and four wheeler.

INTERNET

www.google.com

http://encyclopedia.thefreedictionary.com/

http://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rd-

operations_news245.html

http://www.etalkindia.com/indian_automobiles_news_forums/

new_variant_of_hero_honda_bikes_launchedglamour_fi_and_cd_delux-

t3336.0.html

http://www.cmsnl.com/search.php

www@tvsuzuki.com

nvswaminathan@bajajauto,com.

42

APPENDICES

QUESTIONNAIRE

Motor bike is not a luxury it has become the necessity in 21st century. I would like

take few minutes of your precious time, Just to know about your views for different

bike. I assure you that your information will be confidential and it would not be share

by other organization.

Name:

Age: Sex:

Occupation:

1. Which of the following best describe your age group?

a) 14-18 b) 18-25 c) 25 to 35 d) above 35

2. For which purpose you purchase the motorbike?

a) College going b) Office going

c) Maintain friend circle d) Other purpose

3. Which of following company’s motorbike do you have ?

a) Bajaj b) Hero Honda

c) Suzuki d) Yamaha

e) Any other

4. How come you know about that brand? (can make more than one)

a) T.V. b) Newspaper

c) Dealer effort d) World of mouth

43

e) Internet f) Any other

5. Rate the following in order of influence you purchase a bike?

a) Brand image of the product

b) Price

c) After sales service

d) Quality and feature of product

e) Ease of availability

f) Value for money

6. Which physical features contributed most in you buying decision?

a) Looks b) Body build

c) Style e) Robustness

7. What technological feature effected in your buying decision?

a) Power – economy mode b) Mileage

c) Four stroke engine d) Any other

8. From where did you purchase your bike?

a) Authorized outlet b) Near by dealer

c) Online d) Any other

9. Which brand has better after sales service?

a) Bajaj Caliber b) Passion

c) TVS victor d) Ambition

e) LML Freedom f) Other.

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10. Are you satisfied with your decision?

a) Highly satisfied

b) Satisfied

c) Neither satisfied nor dissatisfied

d) Dissatisfied

11. Which bike do your prefer for buying in future?

a) Caliber b) TVS Victor

c) Pulser d) Passion

e) Ambition f) LML Freedom

g) Other

Thank you

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