Preface

“Learning Categories you, and practicing on that learning specialize you”

The importance of any academic courses would gain advantage and the acceptance of the

true form, only through practical experiences. Hence it is quite necessary to put theories

as into task.

Someone has greatly said that practical knowledge is far better than classroom teaching.

During this project I fully realized this and come to know about the present real

world .The present report entitled as “A Study on Brand Image of Two Wheeler

Company in India’’ a fruitful outcome of my research done during the course of my

fourth semester of MBA programmed. This research report forms an integral part of my

MBA degree course at Technical Education Research Institute, P.G. College,

Ghazipur. 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 recognized 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 realizing the sector's full

potential for the economy. 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. The Aims and Objectives of this research are to have an in-

depth knowledge of the Brand Image of Two Wheeler Company in India. I have tried my

level best to make it simple and understandable. The findings were in favor of Brand

Image of Two Wheeler being vital for the Indian organization and they are not

diminishing in today’s world, but they are at the booming stage; and every organization

would want to use Brand Image of Two Wheeler. The research deals with basics of Two

Wheeler and its Brand Image affect in organization. The first chapter is dedicated to the

1

introduction of the Brand Image, history of Two Wheeler and its climate, companies of

Two Wheeler. It also deals the factors affecting Brand Image of Two Wheeler. This

chapter gives detail about the Brand Image of Two Wheeler with reference to Indian

industries. It also deals the challenges and problems come at the time of Brand Image of

Two Wheeler. The second chapter deals with the Objective of the study and Importance

of the study& also included the Scope of the study. The third chapter is a summary of the

various research methodologies used for the development of the project. The

methodology used for the implementation of the assigned project is based on secondary

data. The whole study is based on secondary data. The fourth chapter deals the data

analysis and interpretation Chapter five deals with the findings and recommendations

related to the research report. The conclusion& Limitation of the project is provided in

chapter six and this chapter also deals with the Bibliography & Reference of this project.

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ACKNOWLEDGEMENT

Before I thank anybody for the compilation of this work I would like to thank Almighty

for providing guidance and me all the necessary help. It is grace only that I have

completed this work.

An understanding of the study like this is never the outcome of the efforts of an

individual; rather it bears the imprint of a number of individuals who directly helped me

in completing the present study.

First & foremost, I would like to express my regard to Mr. Rahul Anand Singh (H.O.D.

of M.B.A.) and Dr. Neetu Singh, the training & placement-in-charge and the

honorable Readers of M.B.A. Department for this constant encouragement and support. I

would also like to express immense gratitude towards supervisor Dr. Neetu Singh, for

providing the knowledge, guidance and cooperation in research report.

I am also sincerely thankful to all my friends for giving me opportunity and resource to

work on the research report and giving me support whenever necessary.

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3

INTRODUCTION OF BRAND IMAGE

Brand attributes consist of ‘bits’ of information that are linked to a brand name in

consumer memory and that, when combined with the brand name, make up a brand’s

image (Keller, 1993).The brand attributes themselves come from a variety of sources,

including consumer experiences, marketing communications, and/or word of mouth

(Krishnan, 1996). The linkages between the brand name, its attributes, and other brands in

the marketplace mean that associated attributes can be unique to the consumer, unique to

the brand, or shared with other brands (Meyers-Levy, 1989). Two-wheeler is an important

product item in modern society both urban and rural areas. Consumers mainly purchase

the product for their convenience. Gradually it is becoming more popular in the

consumers' world and its demand is world- wide (Nuruzzaman, 1996). Consumers

purchase decisions for two wheelers are always influenced by a number of factors, which

lead them to select a particular brand in preference to others. In this study ten attributes

are considered as important cues, which lead consumer to select a particular brand of two-

wheeler. This study examines products from a high involvement consumer product

category. Researchers include brand, which is highly similar on measurable attributes

such as cylinder capacity (CC). The reasoning is that the nature of the competitive

marketplace offers many brands within distinct subcategories and this may provide

further understanding of brand choice relating to present market conditions.

4

Brand

The brand is conceptualized as a node in memory, which allows other information about

the brand to be “anchored” to it (Aaker, 1991). The conceptualization of a network of

brand associations in memory with brand as a central core has been put forward by many

others (Killer, 1993; Holden, 1993; Holden & Lutz, 1992). A brand that is not considered

cannot be chosen (Baker et al., 1986). Further, the probability of the brand being chosen

is a condition of the number of other brands in the consideration set. Consumers may

employ heuristics (decision rule) to buy only familiar, well-established brands (Roselius,

1971; Jacoby et al., 1977; Keller, 1993). For a consumer to buy a brand positive attitude

must first be made but brand attitude cannot be formed and intention to buy cannot occur

unless brand awareness occurs (Rossister & Perey, 1991).

Brand image

A brand image is the totality of consumer perceptions about the brand, or how they see it,

which may not coincide with the brand identity. Brand image is defined as the reasoned

or emotional perception consumers attach to specific brands (Dobni & Zinkhan, 1990). A

brand image consists of functional and symbolic brand beliefs. A measurement technique

using semantic differential items generated for the relevant product category has been

suggested for measuring brand image (Dolich, 1969; Fry & Claxton, 1971). Brand image

associations are largely product category specific and measures should be customized for

the unique characteristics of specific brand categories (Park & Srinivasan, 1994; Bearden

& Etzel, 1982). Brand benefits are the foundation of brand image. Chiranjeeb (1997)

claimed that a brand name itself is the foundation of brand image. In a broad sense

purchase decisions are based almost solely upon the attitude existing at the time of

5

purchase. The factors which may prevent consumers from converting their attitudes into

intentions and buying behavior are very numerous and frequent (Wallendorf, 1979).

Brand attitude: Attitudes are not overt behaviors but rather are covert or unobservable

internal reactions (Kim, 2002). It is one of the pervasive notions in all of the Marketing

(Gillbert, 1995). Formal attitudes are learned predispositions to respond to some object in

a consistent way. The response may be favorable or unfavorable (Wallendorf, 1979).

Consumers learn these attitudes over time by being exposed to the object directly or

through receiving information about the object. Our learned attitudes serve as general

guides to our overt behavior with respect to the attitude object, giving rise to a

consistently favorable or unfavorable pattern of response.

BRAND PREFERENCE: -

Brand preference means liking at one brand rather than another. In other words, Brand

preference is “The prior right, favored position, better liking given to a particular brand of

product. This is where customers – given a choice between two brands – will choose

yours over someone else’s. It often is the result of a sense of differentiation and that your

product or service uniquely serves their needs. As well, you can be sure that any value-

added product

Definition

Measure of brand loyalty in which a consumer will choose a particular brand in presence

of competing brands, but will accept substitutes if that brand is not available. Selective

demand for a company's brand rather than a product; the degree to which consumers

prefer one brand over another. In an attempt to build brand preference advertising, the

advertising must persuade a target audience to consider the advantages of a brand, often

by building its reputation as a long-established and trusted name in the industry. If the

6

advertising is successful, the target customer will choose the brand over other brands in

any category.

Brand loyalty

This is where customers will choose your brand time and time again, even if they

experience the occasional poor service or if another product comes along that seems to be

better suited to their needs. To achieve brand loyalty, you need to provide a product that

is highly differentiated, with plenty of value added, but also you need to offer them

remarkable service at a level they will not get anywhere else. Providing this level of

service will ensure that they will never switch. It’s or services you include help them to

choose yours over your competitors.

Effects of Brand Preference: -

We develop a demand model for technology products that captures the effect of changes

in the portfolio of models offered by a brand as well as the influence of the dynamics in

its intrinsic preference on that brand’s performance. In order to account for the potential

correlation in the preferences of models offered by a particular brand, we use a nested

logic model with the brand (e.g., Hero-Honda) at the upper level and its various models

(e.g. Hero-Honda, TVS, Bajaj, etc.) at the lower level of the nest. Relative model

preferences are captured via their attributes and prices. We allow for heterogeneity across

consumers in their preferences for these attributes and in their price sensitivities in

addition to heterogeneity in consumers’ intrinsic brand preferences. Together with the

nested logic assumption, this allows for a flexible substitution pattern across models at the

7

aggregate level. The attractiveness of a brand’s product line changeover time with entry

and exit of new models and with changes in attribute and price levels. To allow for time-

varying intrinsic brand preferences, we use a state-space model based on the Kalman

filter, which captures the influence of marketing actions such as brand-level advertising

on the dynamics of intrinsic brand preferences. Hence, the proposed model accounts for

the effects of brand preferences, model attributes and marketing mix variables on

consumer choice. First, we carry out a simulation study to ensure that our estimation

procedure is able to recover the true parameters generating the data. Then, we estimate

our model parameters on data for the Indian Two Wheelers Market. Overall, we find that

the effect of dynamics in the intrinsic brand preference is greater than the corresponding

effect of the dynamics in the brand’s product line attractiveness. Assuming plausible

profit margins, we evaluate the effect of increasing the advertising expenditures for the

largest and the smallest brands in this category and find that these brands can increase

their profitability by increasing their advertising expenditures. We also analyze the impact

of modifying a camera model’s attributes on its profits. Such an analysis could potentially

be used to evaluate if product development efforts would be profitable.

8

INDIAN TWO-WHEELER INDUSTRY: A PERSPECTIVE

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 recognized 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 realizing 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 realize its potential in the country.

The liberalization policies have led to continuous increase in competition, which has

ultimately resulted in modernization 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. Brand Image of Two Wheeler As we know that

modernization is going on and it is in very rapid way. So, all the youths wants to have a

modern life specially the collegians. The best way to show modernization is that they

prefer to have stylish bike only. They prefer more towards it’s because of comfort and to

show modern life. So, the demand for bikes is increasing day by day specially because of

college boys. Earlier Two Wheeler bikes were not popular because college student don’t

want bikes and all because on that period of time there was no modernization. So, they

used to go with cycles and all. On that period of time the people who were financially

good only. They prefer to have scooters only. But, now a day’s demands are increasing

and people minds are developing to have a stylish life they prefer mostly stylish vehicles.

In showrooms of the two wheelers are present like, Hero-Honda, TVS, Bajaj, etc. These

9

companies are modifying their product according to the changing environment. Just take

on e.g. of organization of Hero-Honda. I am taking the e.g. of Hero-Honda ‘Splendor’.

Because of changing environment ‘Splendor’ is converted into ‘Splendor+’ and ‘Super

Splendor’. It we will compare these three bikes we can see some change either change in

color or Model. Now, the companies are launching their stylish product lets, take on e.g.

- In Hero-Honda Company Glamour, Hunk, etc. are launched. In Bajaj Company Platina,

Discover, Pulsar, Etc. is launched. In TVS Company TVS Star city, TVS Victor, etc. are

launched. All these models of bikes are launched only because of young.

HISTORY OF TWO WHEELERS

Two-wheeler segment is one of the most important components of the automobile sector

that has undergone significant changes due to shift in policy environment. The two-

wheeler industry has been in existence in the country since 1955. It consists of three

segments viz. scooters, motorcycles and mopeds. According to the figures published by

SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80

per cent during 2003-04. This high figure itself is suggestive of the importance of the

sector. In the initial years, entry of firms, capacity expansion, choice of products

including capacity mix and technology, all critical areas of functioning of an industry,

were effectively controlled by the State machinery. The lapses in the system had invited

fresh policy options that came into being in late sixties. Amongst these policies,

Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation

Act (FERA) were aimed at regulating monopoly and foreign investment respectively.

This controlling mechanism over the industry resulted in:

10

(a) Several firms operating below minimum scale of efficiency;

(b) Under-utilization of capacity; and

(c) Usage of outdated technology.

Recognition of the damaging effects of licensing and fettering policies led to initiation of

reforms, which ultimately took a more prominent shape with the introduction of the New

Economic Policy (NEP) in 1985. However, the major set of reforms was launched in the

year 1991 in response to the major macroeconomic crisis faced by the economy. The

industrial policies shifted from a regime of regulation and tight control to a more

liberalized and competitive era. Two major results of policy changes during these years in

two-wheeler industry were that the, weaker players died out giving way to the new

entrants and superior products and a sizeable increase in number of brands entered the

market that compelled the firms to compete on the basis of product attributes. Finally, the

two-wheeler industry in the country has been able to witness a proliferation of brands

with introduction of new technology as well as increase in number of players. However,

with various policy measures undertaken in order to increase the competition, though the

degree of concentration has been lessened over time, deregulation of the industry has not

really resulted in higher level of competition. The history of the automobile industry in

India actually began about 4,000 years ago when the first wheel was used for

transportation. In the early 15th century, the Portuguese arrived in China and the

interaction of the two cultures led to a variety of new technologies, including the creation

of a wheel that turned under its own power. By the 1600s, small steam-powered engine

models were developed, the dream a carriage that moved on its own was realized only in

the 18th century when the first car rolled on the streets. Steam, petroleum gas, electricity

and petrol started to bused in these cars. The automobile, as it progressed, was a product

11

of many hands, of revolutionary concepts, India's transport network is developing at a fast

pace and the automobile industry is growing too. The automobile industry also provides

employment to a large section of the population. Thus the role of automobile industry

cannot be overlooked in Indian Economy. All kinds of vehicles are produced by the

automobile industry. It includes the manufacture of trucks, buses, passenger cars, defense

vehicles, two-wheelers, etc. The industry can be broadly divided into the car

manufacturing; the two-wheeler manufacturing is dominated by companies like TVS,

Honda Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The

Indian automobile industry is now striding inroads into the rural middle class after its

inroads into the urban markets and rural rich. It is trying to bring in varying products to

suit requirements of different class segments of customers. In this section we will provide

you with an in-depth reading and understanding of the various aspects of the automobile

industry - the history of automobiles, information about various automobile companies in

India. The feeling of freedom and being one with the Nature comes only from riding a

two wheeler. Indians prefer the two wheelers because of their small manageable size, low

maintenance, and pricing and easy loan repayments. Indian streets are full of people of all

age groups riding a two wheeler. Motorized two wheelers are seen as a symbol of status

by the populace.

12

Recent Economic DevelopmentsIndia is the 2nd largest two-wheeler market in the world with a size of over Rs 100,000

mn. 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 realize its potential in the country. The liberalization policies

have led to continuous increase in competition which has ultimately resulted in

modernization 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. The total sale of two wheelers in India has touched a figure of ~7.9 mn units by

March, 2007, up 11.4% from the previous fiscal figure of ~7.1 mn units. Production

during the period reached 10.8 mn units, entailing a demand ratio of ~72%. In terms of

sales and market share the major players of the industry are;

- Hero Moto corp. - Honda.

- Bajaj Auto. - TVS Motors.

The composition of the industry consists of motorcycles, scooters and mopeds. Over the

past decade, there has been a consumer preferential shift from mopeds to scooters and

now motorcycles. On account of the shift, the motorcycle segment dominates the two-

wheeler industry with a market share of close to 80%. The motorcycle segment is further

sub divided into 3 classes, starting from the entry/economy class (Rs 30,000 – Rs 40,000),

executive class (Rs 40,000 – Rs 50,000) and the premium class (>Rs 50,000).The

motorcycle segment is primarily led by Hero Honda with a market share of ~59%

13

followed by Bajaj Auto (~18%), HMSI (~9%), TVS Motors (~7%) and Yamaha (~5%).

On the other hand the scooter segment is led by HMSI which has a dominant share of

~63% followed by TVS Motors (16%) and Hero Honda (~14%). When it comes to the

moped segment, it is primarily dominated by TVS Motors with a market share of ~100%.

Last year January to March 2007 the beginnings of slackening domestic demand for two-

wheelers “because of the sharp tightening of non-food credit by the Reserve Bank of

India and all commercial banks and non-banking financing companies”. Throughout

2007-08, the RBI maintained a very tight monetary and credit policy which raised interest

rates on consumer loans to exceptionally high levels. The twin effects of higher interests

and lower credit availability hit the two-wheeler industry very badly. Thus, after a decade

of spectacular double-digit growth, two- wheelers suddenly faced a slump.

A Growth Prospective

The composition of the two-wheeler industry has witnessed sea changes in the post

perform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler

demand in the Indian market. Motorcycle and moped had been experiencing almost equal

level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles

increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds

declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle

segment's gaining importance during this period is exhibited by the Figures 1, 2 and 3

depicting total sales, share and annual growth during the period 1993-94 through 2003-

2004.

Investment in research and development

14

On the two-wheeler industry front, since most manufacturers have a technology tie-up

with a foreign major, the incentive to do R&D with the Indian counterpart has increased.

For adopting new technologies companies need to invest high.• With major auto

companies spending sizeable amount on product development and in- house R&D

expenditure in recent times, deduction of 150% on excise duty exemption to the end

consumers allowed on the same will encourage further R&D investments.

Barriers to entryBelow are the points which play Key roles for new entrants:

• Economies of scale/capital investment

• Cost & resource disadvantage (patents, locked-in partnerships with suppliers/customers)

• Learning & experience curves

• Brand preferences & loyalty

• Access to distribution channels

• Regulatory prices

• Tariffs & international trade restrictions

• Industry attractiveness (growth/profitability

15

Two Wheeler Showrooms

The automobile companies carry out market research and surveys from time to time.

Based on their findings, they come to know of the Brand preferences and likings and try

to develop their products on those lines. Once the products are ready, they indulge in

extensive media and advertisement campaigns and highlight their products and respective

features before the target audiences. However, in order to reach out to the customers, they

need to present their vehicles before the customers, closer to their footsteps and there lies

the importance of having showrooms.

Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile sector

that has undergone significant changes due to shift in policy environment. The two-

wheeler industry has been in existence in the country since 1955. It consists of three

segments viz. scooters, motorcycles and mopeds. In India there are some MNC’s and

Indian company dealing in automobile sector. The main key players who are dealing in

this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest

player in this sector in India as well as in the world and playing a very important role in

two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies

and Yamaha & Honda are international automobile brand.

Bajaj :-

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Bajaj is the first Indian two wheeler automobile company in the market since 1945 with

the name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading

corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license

from the Government of India to manufacture two- and three-wheelers vehicles in 1959.

Hero Motocorp Ltd.:-

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter

manufacturer based in New Delhi, India. The company is the largest two wheeler

manufacturer in the world. In India, it has a market share of about 46% share in 2-wheeler

category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors

ranked at #108. On 31 March 2013, the market capitalization of the company was INR

308 billion (USD 5.66 billion). Hero Honda started in 1984 as a joint venture between

Hero Cycles of India and Honda of Japan. In 2010, when Honda decided to move out of

the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August

2011 the company was renamed Hero Moto Corp with a new corporate identity

In June 2012, Hero Moto corp. approved a proposal to merge the investment arm of its

parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months

of its split from Honda Motors.

TVS Motors:-

TVS Motors is the third largest company in the two-wheeler industry with a market share

of 16%. Infect, it is the only Indian company without a foreign collaboration in the two-

wheeler industry. When the company opted out of the collaboration with Suzuki in 2002,

many believed that TVS was headed towards extinction. But the company proved the

doomsayers wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd.

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originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki

Motors of Japan, TVS was one of the leaders in two-wheeler industry.

Yamaha Motor Corporation:-

Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in

India since 1955 and providing latest technology in India from last two decades. Yamaha

Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor

corporation, Japan.

Honda motors:-

Honda motors of Japan is not a new name in the two wheeler scenario in the country, they

were in a tie up with the Fibroids owned Kinetic group. However in the late 90s they

parted ways after problems arose over issues like introduction of new models, advertising

expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of

Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero

Honda which in a couple of decades or so have gone on to become the single largest

motorcycle company in the world. Though Honda has come on its own on the Indian

market yet it will be providing technological support to Hero Honda for the next ten

years. Thus presenting a unique situation in which the company will be in direct

competition with the company which it has been associated for nearly two decades.

Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor

company Japan eventually entered the Indian market with Honda Unicorn in 2004.

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Two wheeler companies in India

The two wheeler companies in India such as the Bajaj Auto, Hero Honda, TVS Motor,

have a good number of showrooms spanning the length and breadth of the country.

Almost all the leading towns and cities in India, not to talk of the bigger cities only, have

motorbike showrooms of these companies that present a range of two wheelers,

motorcycles, scooters and mopeds of various ranges, colors and design. An important

objective served by the showrooms is the availability of all vehicles of the automobile

companies before the customers close to their place. As such, the customer gets a chance

to see the vehicle on his/her own, test ride and feel it and then make a decision if that two

wheeler is the best one for him. You can find exclusive scooter showrooms too which

caters to the scooter needs of the consumers. Another purpose that the auto showrooms

serve is that they bridge the gap between the company and the customer. The customer

leaves his opinion about the vehicle after seeing the features and in certain cases, even

test riding it. This consumer feedback is important in the sense that it enables the

manufacturing company to understand the customer's mind and make the changes in its

two wheeler, if and when necessary. The motorbike showrooms are nowadays are

attractive and provide a pleasant and comfortable ambiance for the customers. They are

provided with a good bit of hospitality and every effort is made to ensure that the

customer gets a positive impression about the company's product and of the company

itself. That will help the company to enhance its image among the consumers and

gradually enlarge the market share. The two-wheeler (2W) industry has shown a healthy

volume1 growth of 21.9% (y-o-y) during the period April-January 2010 contributed by a

mix of favorable demand and supply drivers. While on one hand, a steady revival in

economic activity, low excise duties, low interest rates and relatively higher disposable

incomes enabled the demand pull; on the other hand, launch of new products/ variants by

19

manufacturers, targeted marketing spends and expansion of customer touch points

(notwithstanding sharp decline in organized financing) provided the complementary

supply push. The above growth is significant in the backdrop of a negative volume

growth of 5.0% witnessed in 2007-08 and the rather subdued volume growth of 4.6%

seen in 2008-09. While the current growth rate may moderate in the near term, the

industry is expected to be on track for a healthy 9-11% annual growth over the medium

term, supported by a combination of favorable demand drivers in the domestic market and

strong exports growth. The 2W industry had reported double-digit growth rates for six

consecutive years till 2006-07 on the back of rising disposable incomes in Tier 2 and 3

cities and in rural areas, and the easy availability of consumer finance. However, 2007-08

saw a volume decline following an increase in interest rates and a sudden reduction in the

availability of finance. Within the 2W industry, the entry-segment of motorcycles was hit

the hardest as financial institutions tightened their credit norms due to relatively weaker

credit profiles and the higher proportion of financed purchases in this segment. Although

the insufficiency of two Wheelers finance remains a concern, the impact of the same has

been mitigated by the availability of finance from the unorganized sector and the growing

share of rural sales, which happen largely on cash basis.

INTRODUCTION OF THE HERO MOTOCORP

20

Hero Moto corp. Ltd., formerly Hero Honda, is an Indian motorcycle and scooter

manufacturer based in New Delhi, India. The company is the largest two wheeler

manufacturer in the world. In India, it has a market share of about 46% share in 2-wheeler

category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors

ranked at #108. On 31 March 2013, the market capitalization of the company was INR

308 billion (USD 5.66 billion). Hero Honda started in 1984 as a joint venture between

Hero Cycles of India and Honda of Japan. In 2010, when Honda decided to move out of

the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August

2011 the company was renamed Hero Moto Corp with a new corporate identity

In June 2012, Hero Moto corp. approved a proposal to merge the investment arm of its

parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months

of its split from Honda Motors.

History

“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero

Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was

established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal

family and Honda group both owned 26% stake in the Company. During the 1980s, the

company introduced motorcycles that were popular in India for their fuel economy and

low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it'

21

that emphasized the motorcycle's fuel efficiency helped the company grow at a double-

digit pace since inception. In 2001, the company became the largest two-wheeler

manufacturing company in India and globally. It maintains global industry leadership till

date. The technology in the bikes of Hero Moto corp. (earlier Hero Honda) for almost 26

years (1984–2010) has come from the Japanese counterpart Honda.

1984—Hero Honda Motors Ltd. incorporated

1985—Hero Honda motorcycle CD 100 launched.

1989—Hero Honda motorcycle Sleek launched.

1991—Hero Honda motorcycle CD 100 SS launched.

1994 – Hero Honda motorcycle Splendor launched.

1997—Hero Honda motorcycle Street launched.

1999 – Hero Honda motorcycle CBZ launched.

2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition

launched.

22

2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor

plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma

launched.

2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*

launched.

2005—Hero Moto corp. Super Splendor, Hero Honda motorcycle CD Deluxe,

Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero

Honda Scooter Pleasure.

2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of

Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle

Passion Plus and Hero Honda motorcycle Hunk launched.

2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.

2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and

limited edition of Hero Honda motorcycle Hunk launched

23

2010— new Models of Hero Honda motorcycle Splendor Pro and New Hero

Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor

launched.

2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ

Xtreme, Karizma launched. New licensing arrangement signed between Hero and

Honda. In August Hero and Honda parted company, thus forming Hero MotoCorp

and Honda moving out of the Hero Honda joint venture. In November, Hero

launched its first ever Off Road Bike Named Hero "Impulse".

2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor

the young generation bike are launched.

2013-Hero MotoCorp unveiled line-up of 15 updated products including Karizma

R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO,

Hero Motocorp Super Splendor, Passion Pro and Xpro, Glamour and Glamour FI

etc. It also introduced three new technologies- Engine Immobilizer in new

Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and

Start System) in new Splendor iSmart.

24

Termination of Honda joint venture:-

In December 2010, the board of directors of the Hero Honda Group had decided to

terminate the joint venture between Hero Group of India and Honda of Japan in a phased

manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda

Under the joint venture Hero Group could not export to international markets (except Sri

Lanka and Nepal) and the termination would mean that Hero Group can now export.

Since the beginning, the Hero Group relied on their Japanese partner Honda for the

technology in their bikes. So there are concerns that the Hero Group might not be able to

sustain the performance of the joint venture alone The Japanese auto major will exit the

joint venture through a series of off market transactions by giving the Munjal family that

held a 26% stake in the company—an additional 26%. Honda, which also has an

independent fully owned two wheeler subsidiary—Honda Motorcycle and Scooter India

(HMSI)—will exit Hero Honda at a discount and get over $1 billion for its stake. The

discount will be between 30% and 50% to the current value of Honda's stake as per the

price of the stock after the market closed on Wednesday The rising differences between

the two partners gradually emerged as an irritant. Differences had been brewing for a few

years before the split over a variety of issues, ranging from Honda's reluctance to fully

and freely share technology with Hero (despite a 10-year technology tie-up that expires in

2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese

company. Another major irritant for Honda was the refusal of Hero Honda (mainly

managed by the Munjal family) to merge the company's spare parts business with Honda's

new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI) As per the

arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by

Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle

25

(SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV

would eventually be thrown open for private equity participation and those in the fray

include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and

Carlyle Group. Honda will continue to provide technology to Hero Honda motorbikes

until 2014 for existing as well as future models.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero

MotoCorp Limited on July 29, 2011. The new brand identity and logo of Hero MotoCorp

were developed by the British firm Wolff Olins. The logo was revealed on 9 August 2011

in London, to coincide with the third test match between England and India. Hero

MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use

any vendor for its components instead of just Honda-approved vendors. On 21 April

2014, Hero MotoCorp announced their plan on a $ 40 Mn joint venture with Notiol Niloy

Group in the next five years.

Operations

Hero MotoCorp has three manufacturing facilities based at Dharuhera and Gurgaon in

Haryana and at Haridwar in Uttarakhand. These plants together have a production

capacity of 6.9 million 2-wheelers per year. Hero MotoCorp has a sales and service

network with over 3,000 dealerships and service points across India. It has a customer

loyalty program since 2000, called the Hero Honda Passport Program. It is reported that

Hero MotoCorp has five joint ventures or associate companies, Munjal Showa, AG

Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that

supply a majority of its components. The company has a stated aim of achieving revenues

26

of $10 billion and volumes of 10 million two-wheelers by 2016–17. This is conjunction

with new countries where they can now market their two-wheelers following the

disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their

revenues from international markets, and they expected to launch sales in Nigeria by end-

2011 or early-2012. In addition, to cope with the new demand over the coming half

decade, the company is coming up with their fourth factory in Neemrana in Rajasthan

while their fifth factory is planned to be set up at Halol in Gujarat.

Products and services

Motorcycles

It has 17 models of motorcycles across the 100 cc, 125 cc, 150 cc, 225 cc categories.

Sleek

Street

Achiever

Ambition 133, Ambition 135

CBZ, CBZ Star, CBZ Xtreme, Hero Xtreme

CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self

Start)

HF Dawn, HF Deluxe

Glamour, Glamour F.I.

Hunk

Karizma, Karizma R, Karizma ZMR FI

Passion, Passion Plus, Passion Pro, Passion XPro

27

Splendor, Splendor+, Splendor+ (Limited Edition), Hero Motocorp

SuperSplendor, Splendor NXG, Splendor PRO, Splendor iSmart

Hero Impulse launched in 2011 after the separation of Hero and Honda. Its India's

first off-road and on road Bike.

Hero Ignitor launched in 2012

Scooters

It has 2 models in scooters:

Pleasure

Maestro

Awards and recognition

The Brand Trust Report published by Trust Research Advisory has ranked Hero

Honda in the 13th position among the brands in India.

It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two

Wheelers Category at the Auto India Best Brand Awards 2012

28

INTRODUCTION OF THE BAJAJ AUTO LIMITED

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We

organize ourselves for a transparent and harmonious flow of work. We respect sound

theory and encourage creative experimentation. And we make our workplace a source of

pride. We believe in: Transparency--a commitment that the business is managed along

transparent lines. Fairness all stakeholders in the Company, but especially to minority

shareholders.

Key Dates:

1945: Bajaj Auto is founded.

1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters.

1977: Technical collaboration with Piaggio ends.

1984: Work begins on a second plant.

1998: Bajaj plans to build its third plant to meet demand.

2000: Thousands of workers are laid off to cut costs.

29

Company History:

Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The

company generally has lagged behind its Japanese rivals in technology, but has invested

heavily to catch up. Its strong suit is high-volume production; it is the lowest-cost scooter

maker in the world. Although publicly owned, the company has been controlled by the

Bajaj family since its founding.

Origins

The Bajaj Group was formed in the first days of India's independence from Britain. Its

founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly

referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of

their wealth for the common good I always had this merchant prince principally in mind,'

said the Mahatma after Jamnalal's death. Jamnalal Bajaj was succeeded by his eldest son,

27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's

struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated

and diversified the group, branching into cement, ayurvedic medicines, electrical

equipment, and appliances, as well as scooters. The precursor to Bajaj Auto had been

formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported

two- and three-wheeled vehicles in 1948 and obtained a manufacturing license from the

government 11 years later. The next year, 1960, Bajaj Auto became a public limited

company. Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of

Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto

30

began producing its first two-wheelers the next year. Rahul Bajaj became the group's

chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to

the factory in Pune, an industrial city three hours' drive from Bombay. The company had

an annual turnover of Rs 72 million at the time. By 1970, the company had produced

100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers,

much cheaper to buy and many times more fuel-efficient.A number of new models were

introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early

in the decade and the Bajaj Super and three-wheeled, rear engine Autorickshaw in 1976

and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone. The

technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward,

Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block

Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong

Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52

million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16

billion. Pretax profits were cut in half, to Rs 63 million.

31

New Competition in the 1980s

Japanese and Italian scooter companies began entering the Indian market in the early

1980s. Although some boasted superior technology and flashier brands, Bajaj Auto had

built up several advantages in the previous decades. Its customers liked the durability of

the product and the ready availability of maintenance; the company's distributors

permeated the country. The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc

motorcycle was immediately successful, and the company aimed to be able to make

60,000 of them a year by 1985. Capacity was the most important constraint for the Indian

motorcycle industry. Although the country's total production rose from 262,000 vehicles

in 1976 to 600,000 in 1982, companies like rival Lohia Machines had difficulty meeting

demand. Bajaj Auto's advance orders for one of its new mini-motorcycles amounted to

$57 million. Work on a new plant at Waluj, Aurangabad commenced in January 1984.

The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj

KB100 motorcycles. The company was making 500,000 vehicles a year at this point.

Although Rahul Bajaj credited much of his company's success with its focus on one type

of product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy

control of Ahsok Leyland failed.The Bajaj Sunny was launched in 1990; the Kawasaki

Bajaj 4S Champion followed a year later. About this time, the Indian government was

initiating a program of market liberalization, doing away with the old 'license raj' system,

which limited the amount of investment any one company could make in a particular

industry. A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul

Bajaj told the Financial Times that his company was too large to be considered a potential

collaborator by Japanese firms. It was hoping to increase its exports, which then

amounted to just five percent of sales. The company began by shipping a few thousand

vehicles a year to neighboring Sri Lanka and Bangladesh, but soon was reaching markets

32

in Europe, Latin America, Africa, and West Asia. Its domestic market share, barely less

than 50 percent, was slowly slipping. By 1994, Bajaj also was contemplating high-

volume, low-cost car manufacture. Several of Bajaj's rivals were looking at this market as

well, which was being rapidly liberalized by the Indian government. Bajaj Auto produced

one million vehicles in the 1994-95 fiscal year. The company was the world's fourth

largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and Kawasaki. New

models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also signed

development agreements with two Japanese engineering firms, Kubota and Tokyo R & D.

Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated the

company's marketing slogan. The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw

were introduced in 1997. The next year saw the debut of the Kawasaki Bajaj Caliber, the

Spirit, and the Legend, India's first four-stroke scooter. The Caliber sold 100,000 units in

its first 12 months. Bajaj was planning to build its third plant at a cost of Rs 4 billion

($111.6 million) to produce two new models, one to be developed in collaboration with

Cagiva of Italy.

New Tools in the 1990s

Still, intense competition was beginning to hurt sales at home and abroad during the

calendar year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals'

higher-end offerings, particularly in high-powered motorcycles, since poorer consumers

were withstanding the worst of the recession. The company invested in its new Pune plant

in order to introduce new models more quickly. The company spent Rs 7.5 billion($185

million) on advanced, computer-controlled machine tools. It would need new models to

comply with the more stringent emissions standards slated for 2000. Bajaj began

installing Rs. 800 catalytic converters to its two-stroke scooter models beginning in

33

1999.Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj

Auto's profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj

was able to boast, 'My competitors are doing well, but my net profit is still more than the

next four biggest companies combined.' Hero Honda was perhaps Bajaj's most serious

local threat; in fact, in the fall of 1998, Honda Motor of Japan announced that it was

withdrawing from this joint venture. Bajaj Auto had quadrupled its product design staff to

500. It also acquired technology from its foreign partners, such as Kawasaki

(motorcycles), Kubota (diesel engines), and Cagiva (scooters). 'Honda's annual spend on

R & D is more than my turnover,' noted Ruhal Bajaj. His son, Sangiv Bajaj, was working

to improve the company's supply chain management. A marketing executive was lured

from TVS Suzuki to help push the new cycles. Several new designs and a dozen upgrades

of existing scooters came out in 1998 and 1999. These, and a surge in consumer

confidence, propelled Bajaj to sales records, and it began to regain market share in the

fast-growing motorcycle segment. Sales of three-wheelers fell as some states, citing

traffic and pollution concerns, limited the number of permits issued for them. In late

1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million.

The Italian firm had exited a relationship with entrepreneur Deepak Singhania and was

looking to reenter the Indian market, possibly through acquisition. Piaggio itself had been

mostly bought out by a German investment bank, Deutsche Morgan Grenfell (DMG),

which was looking to sell some shares after turning the company around. Bajaj attached

everal conditions to his purchase of a minority share, including a seat on the board and an

exclusive Piaggio distributorship in India. In late 2000, Maruti Udyog emerged as another

possible acquisition target. The Indian government was planning to sell its 50 percent

stake in the automaker, a joint venture with Suzuki of Japan. Bajaj had been approached

by several foreign car manufacturers in the past, including Chrysler (subsequently

34

DaimlerChrysler) in the mid-1990s. Employment fell from about 23,000 in 1995-96 (the

year Bajaj suffered a two-month strike at its Waluj factory) to 17,000 in 1999-2000. The

company planned to lay off another 2,000 workers in the short term and another 3,000 in

the following three to four years.

Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj

Electricals Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.

Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio

Spa.

35

INTRODUCTION TO TVS MOTORS

Company History - TVS Motor Company

The company was incorporated as Indian Motorcycle Pvt. Ltd. On 15 th July. Its name

was changed to Indo Suzuki Motorcycles Pvt. Ltd. And it was converted into a public

limited company on 12th January,1984. It was promoted by Mr. N. Krishnan in

collaboration with Suzuki Motor Co. Ltd. Japan; Sundaram-Clayton, Ltd., a member of

the Company to the extent of Rs 70 lakhs. The company entered into a technical know-

how and assistance agreement with Suzuki Motor Co. Ltd., of Japan on 22nd September.

As per the terms of the Collaboration, Suzuki agreed to furnish complete technical

information and know-how, trade secrets and other data. All shares taken up by promoters

etc.

1984- The company received a letter of intent for the manufacture of 20,000 spark

ignition operated out board motors and 30,000 internal combustion spark ignition engines

up to 500cc per annum. 59, 40,000 shares issued at par in 1984. 7,00,000 shares allotted

to Sundaram Clayton, Ltd. Chennai, 70,000 shares allotted to Anusha Investments (P)

Ltd. Chennai, 20,00,000 shares allotted to Suzuki Motor Co., Ltd., Japan; 2,20,000 shares

allotted to employees and business associates and 29,70,000 shares offered to the public.

1985- A new company Lakshmi Auto Components Pvt Ltd. was incorporated for the

manufacture of critical engines and transmission parts.

36

1986-The company acquired the assets of the moped division from Sundaram Clayton

Ltd. The cost of acquisition was met partly by rights issue of equity shares. The company

subscribed to 39, 20,000 equity shares of Rs.10 each of Lakshmi Auto Components Pvt

Ltd, whereupon it became a subsidiary of the company. The name of the company was

changed from Indo Suzuki Motorcycles Ltd. to TVS Suzuki Ltd with effect from 18th

August.154, 00,000 Rights Equity shares issued at par in prop. 2:1.

1988-The company obtained a letter of intent for expanding the capacity to 4, 00,000

Nos. two wheelers.

1989-The working was adversely affected due to labor unrest which resulted in a lock-

out from 28th February 1990. The lock out was lifted in the second week of June 1990.

1990-The company launched a 34cc miniped to take advantage of the Motor Vehicle Act

that exempts such vehicles from the payment of road tax. The Company worked for only

10 months due to lock-out.

1991-The technical aid agreement entered into with Suzuki Motor Co. ,Japan which

expired in August 1991 was extended for three more years with the approval of the

Government of India.

1992-The Company launched two new models of motor cycles viz.`Samurai'and

`Shogun'.

1993-The Company launched a new model of moped viz. `TVS Scooty'. 1995- The Company was studying the feasibility of opening a second plant at a different

Location to meet the growth in demand for two wheelers in the near future. It also

proposed to introduce upgraded version of mopeds. In addition, during the year, the

Company undertook to develop new models of motorcycles.

1996-The company is taking steps to meet the increase in demand for its products and

improve the market share. A statement relating to the subsidiary, M/s Lakshmi Auto

37

Components Limited, Chennai, and a copy of its annual accounts for the year ended 31st

March, 1996 is attached to the Balance Sheet pursuant to section 212 of the Companies

Act, 1956. As per the requirements of section 217(1)(e) of the Companies Act, 1956 read

with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules,

1988, the information regarding conservation of energy, technology absorption and

foreign exchange earnings and outgo are given in annexure I to this report.

1997-TVS-Suzuki plans to set up an auto ancillary estate through joint venture with

some of its existing components suppliers. The proposed project is to come up at a new

57 - acre site near TVS-Suzuki's existing plant at Horus.

Leading two-wheeler manufacturer in the country, TVS Suzuki, will soon set up a new

2.5 lakh capacity scooter plant in Mysore. TVS-Suzuki (TSL) - a joint venture between

the TVS group and Suzuki Motor Corporation, Japan - was the first company to launch a

100-cc motorcycle in the Indian market. Credit Analysis & Research Ltd (Care) has

assigned the credit Rating of CARE AA+ (double A plus) to the proposed non-

convertible debenture issue of Rs.100 crore. TVS Motor Company has its origin in

SUndaram CLayton Limited, Moped Division, started in 1980. The factory was started in

38

Horus, Tamil Nadu in southern India. The first product launched was a 50 cc moped,

which appealed to the masses because of its capability to carry two people. In the same

location, the same promoters started another company in 1984, in collaboration with

Suzuki Motor Corporation of Japan, for the manufacture of 100 cc motorcycles under the

brand name of India-Suzuki Motorcycles. Subsequently in the moped division was bought

by India Suzuki Motorcycles in 1987 and the company changed its name to TVS Suzuki

Ltd. Even though the company started producing all kinds of two wheelers like mopeds,

scooters and motorcycles, the collaboration with Suzuki continued for the motorcycles

only. The collaboration with Suzuki Motor Corporation ended in 2001 and since then the

name of the company changed to TVS Motor Company. The company now develops all

types of two-wheelers through its own in house R&D facility and manufactures in three

locations in India, Horus in Tamil Nadu, Mysore in Karnataka and Baddi in Himachal

Pradesh. It has recently started a new manufacturing plant in Indonesia to cater to the

South East Asian market. The Chairman and Managing Director of the Company is Mr.

Venu who is the grandson of TV Sundaram Iyengar.

The major products

39

Motorcycles

TVS MAX 100

TVS Fiero

TVS Samurai

TVS Shaolin

TVS Shogun

TVS Apache (150 cc,13.7 Ps @8500rpm)

TVS Apache RTR 160

TVS Apache RTR 160 EFI (Electronic Fuel Injection)

TVS Apache RTR 180 (17.3ps)

TVS Centra

TVS Fiero

TVS Fiero F2

TVS Fiero FX

TVS Flame

TVS Flame (125 cc,ccvti technology)

TVS Jive

TVS MAX 100

TVS MAX R 100

TVS Star

TVS Star City

TVS Star Sport

TVS Supra

TVS Victor (110 cc)

TVS Victor EDGE (125 cc)

40

TVS Victor GLX (125 cc)

TVS-Suzuki Ltd (TSL).

TVS Suzuki is a joint venture between Saundaram Clayton Ltd. of the TVS group and

Suzuki Motor Corporation, Japan. TVS Suzuki Ltd (TSL), the second largest two-wheeler

manufacturer in the country, will be restructuring its entire vendor-base in the next five

years with the objective of creating robust vendors to meet its future expansion plans.

TVS Suzuki Limited is officially launching its new moped model, the XL Super. The Rs.

100 crores non-convertible debentures of TVS-Suzuki Limited rating of AA + (high

safety with higher standing) has been retained by CARE.

1998-TVS Suzuki Ltd, one of the leading two-wheeler manufacturers in the country, has

crossed the Rs.1, 000-crore turnover mark in 1997-98. TVS will be the first company in

the country to introduce the 4 stroke scooter in the Indian market.TVS' new-generation

state-of-the-art four-stroke scooter Spectra, of which we gave You an exclusive preview

last month, was launched in spectacular fashion at the TVS Millennium Show on October

1 in New Delhi. TVS Suzuki Ltd on October 1 launched its new generation 4-stroke

scooter `TVS Spectra' in Delhi.

1999-TVS Suzuki is all set to launch a scaled-down version of Spectra the recently

launched four-stroke scooter. The company is set to launch Spectra on a nation-wide basis

in April. Suzuki has indicated to the TVS group that if it did not agree to the Japanese

company's acquiring a majority stake, it should allow Suzuki to set up a 100 per cent

subsidiary.

2000-The Company, pioneers of Indo-Japanese motorcycles in the country, has launched

its latest offering, Suzuki Fiero, in the Kerala market. Two-Wheeler major, TVS-Suzuki

Limited is set to create a special cell to tap the institutional segment. The Company

proposes to re-launch its four-stroke scooter, Spectra, in July. Two-wheeler major TVS

41

Suzuki is all set to cross the magic one million mark during the current fiscal with 12 new

models lined up over the next 18 months. Motorcycle giant, TVS Suzuki, has forged an

alliance with Brand Dotcom to leverage the latter's online expertise brand building on the

Net. TVS-Suzuki Ltd on August 30th, formally launched its indigenously developed 4

stroke motorcycle, TVS Victor, here. The price has been fixed at Rs 41,187, (ex-

showroom, Chennai).The TVS group and Suzuki Motor Corporation September 27 parted

ways from their 15-year-old joint venture with the former buying out the 25.97 per cent

stake of the Japanese company for Rs 9 crore.

2002-TVS Motor Company Ltd has informed that the Board declared an interim

dividend of Rs 9.00 per share on 2, 31, 00,070 equity shares of Rs 10/- each fully paid up,

aggregating to Rs 231.00 million.

2003-TVS Motor Company has recorded a market share of 35% from motor cycle’s

division K.S.Bajpai has been appointed as an Additional Director on the Board.TVS,

Bajaj Auto and Yamaha have grabbed the market share from the country's largest motor

cycle maker Hero Honda. The TVS victor sales has crossed 4 lakh unit mark in less than

18 months of its launch.TVS Motor has recorded a 31% growth in its sales.C V R Panikar

has been appointed as Additional Director on the Board of TVS Motor Company

Ltd.TVS Motor Company has reintroduced Fiero, in order to compete with Bajaj Pulsar.

TVS Motor Company Ltd has introduced its own racing bikes which Team TVS will test

on the tracks in Asian Circuit.TVS Motor launched 4 new mobikes including a new brand

100-cc mobike called the Centra. TVS Motor Chairman and MD Venu Srinivasan has

been selected in Business Week's Stars of Asia which covers the top 25 achievers in the

continent.TVS Motor Company adds two new models in two-wheeler segment. TVS

Motor ties up with State Bank of India for scooter and Motorcycle financing. Launches

Fiero F2 and Scooty Pep models. Board of approves the merger of engine components

42

division of its subsidiary, Lakshmi Auto Components (LAC) with TVS Motors effective

from April 2, 2003

2004-TVS Motor, on Jan 5 launched Centra, a 100 cc four-stroke motor cycle, with

variable timing intelligent (VTI) engines, claiming to give more mileage to consumers.

The Centra has bundled price, style, power along with fuel efficiency making it a fill-

once-a-month bike, and it's priced at Rs.36, 990. nearly Rs 100 crore investment had gone

into the launch of 'Centra', including R&D, plant and machinery.TVS Motor Company

Unveil TVS Centra With ' VT-i Engines',, a 100 CC 4 stroke Motorcycle. TVS Motor

Company launched its new bike - TVS Centra - here on February 9, 2004, for the first

time in the State. It is a 100-cc four-stroke motorcycle targeted at the popular segment

and a Fill-it-once-a-month bike, competitively priced at Rs. 36,990. The vehicle has been

launched in January in the metros and other cities and so far 8,000 vehicles had been sold

in the country.TVS Motor Company and Union Bank of India (UBI) have announced the

launch of Union Miles Scheme,' an exclusive two-wheeler finance scheme TVS Motor

Company (TVS) launches new 125cc, 4-stroke Victor GLX motorcycle in Chennai on

May 02, 2004

2005-TVS Motor Company introduced its entry-level 4-stroke motorcycle - TVS Star -

in the Kerala market

2006-TVS Motor appoints new President TVS launches Apache in Vizag TVS Motor

Company launched a new version of 125 cc Victor GLX with an electric start option

2007- TVS Motor Co, has rolled out seven new vehicles, including its first three-wheeler

and a new 125 cc bike, aimed at gaining lost share in a highly competitive market.

Management - TVS Motor

Name Designation

43

Venu Srinivasan Chairman and Managing director

T Kannan Director

K S Bajpai Director

Prince AsirvathamDirector

Name Designation

H Lakshmanan Director

C R Dua Director

R Ramakrishnan Non Executive Director

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 fulfillment and prosperity for employees, dealers and suppliers.

Vision

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 – Committed to Total Quality

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

44

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 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 employee’s talents and

enhance job satisfaction. TVS Motor will create an enabling ambience where the

maximum self-actualization 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 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.

MARKETING STRATEGIES

For Two wheelers company, it is not about merely adding numbers any more, as they will

come by any way in an extremely under-penetrated market, but time reassure customers

of enhanced user experience. "They now have a near pan-India presence barring Ghazipur

and North East and have created an bike. So we thought we will take the message of

enhanced user experience for the existing customers. The theme campaign too is built on

this line," he said. "As a part of this initiative, we have created what we describe as a 360

degree touch point experience, through 20,000 experienced professionals, 3,200 value

stores across cities and towns and backed by digital and viral marketing. This is aimed at

creating a stronger bond between the company and the customers and is based on

customer feedback," she explained. The campaign would include ad blitz with actor

45

Hrithik Roshan and would be backed by other brand ambassadors with the underlining

message `experience the difference.'

Enriching Experience

"As the world moves to next generation insurance offering new plans, she explained.

Initially, there was the issue of lack of price. But the market is now flooded with

Attractive price from Rs 10,000 and users have the choice to bike of their Choice from

wherever they like.

Yamaha Motor Company

46

Yamaha Motor Company Limited (ヤマハ発動機株式会社 Yamaha Hatsudōki KK),

is a Japanese manufacturer of motorcycles, marine products such as boats and outboard

motors, and other motorized products. The company was established in 1955 upon

separation from Yamaha Corporation, and is headquartered in Iwata, Shizuoka, Japan.

Yamaha Motor conducts global development, production and marketing operations

through 109 consolidated subsidiaries as of 2012.Led by Genichi Kawakami, the

company’s first president, Yamaha Motor began production of its first product, the YA-1,

in 1955. The 125cc motorcycle won the 3rd Mount Fuji Ascent Race in its class, and

launched a legacy by which the company continues to pursue motorsports as a means to

accelerate development. Yamaha Motor’s current lineup of products includes

motorcycles, scooters, electrically power assisted bicycles, boats, sail boats, personal

watercrafts, pools, utility boats, fishing boats, outboard motors, 4-wheel ATVs,

recreational off-highway vehicles, racing kart engines, golf cars, multi-purpose engines,

generators, water pumps, snowmobiles, small-sized snow throwers, automobile engines,

surface monsters, intelligent machinery, industrial-use unmanned helicopters, electrical

power units for wheelchairs and helmets. The company is also involved in the import and

47

sales of various types of products, development of tourist businesses and management of

leisure, recreational facilities and related services.

India Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. In August 2001, Yamaha India became

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's

manufacturing facilities comprise of 2 State-of-the-art Plants at Faridabad (Haryana) and

Surajpur (Uttar Pradesh). The infrastructure at both the plants supports production of

motorcycles and parts for the domestic as well as overseas markets. The Surajpur plant

was established in 1984. The state–of-the-art Assembly plant at Surajpur was inaugurated

on 6th July’09 and is spread over an area of 36,000 sq. mts. It has the capacity to produce

1 million motorcycles and scooters annually. This fully integrated assembly plant is built

on the lines of Yamaha’s globally tried, tested and successfully implemented standards

and meets the global quality benchmarks. The plant has 3 vehicle assembly lines and 4

engine assembly lines. The Faridabad Plant was established in 1965 and was upgraded in

2008 for manufacturing of machined parts like Gears & shafts, Crank, Clutch Assembly,

Crank Case, Body Cylinder, Head Cylinder.In April 2013, IYM established 2 functionally

independent entities namely Yamaha Motor India Sales Pvt. Ltd. (YMIS) that will cater

to the sales and marketing needs of the company and Yamaha Motor Research and

Development India Pvt. Ltd. (YMRI) that is intended to increase Yamaha’s

manufacturing competitiveness through the establishment of an R&D headquarters in

India.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

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includes YZF-R15 Version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X,

SZ-R & SZ-RR (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc), Crux

(106cc) and scooter Ray (113cc) and Ray Z (113cc). Its import portfolio includes VMAX

(1,679cc), YZF-R1 (998cc) and FZ1 (998cc).

About Yamaha Motor India Sales Pvt. Ltd.:-

In April 2013, India Yamaha Motor established a functionally independent sales and

marketing entity i.e. Yamaha Motor India Sales Pvt. Ltd (YMIS).The newly

formed Yamaha Motor India Sales Pvt. Ltd. (YMIS) is intended to further strengthen the

Sales & Marketing unit which is responsible for sales & promotion, after sales service

and provision of spare parts. It has been Yamaha’s constant endeavor to fortify its brand

image and supersede customer expectation. YMIS will continue to reinforce its

relationship with the customers with its ‘YES! YAMAHA! Campaign which emphasizes

on providing the Best 3S Experience – Sales, Service and Spare Parts so that the customer

always appreciates Yamaha and accepts the brand like the word “YES”.Yamaha Motor

India Sales Pvt. Ltd. (YMIS) is currently responsible for the Sales and promotion of YZF-

R15 Version 2.0 (150cc), Fazer (153cc), FZ-S (153cc), FZ (153cc), SZ-X, SZ-R & SZ-

RR (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc), Crux (106cc), Ray

(113cc), Ray Z (113cc) and Alpha (113 cc) Scooter. The import portfolio includes

VMAX (1,679cc), YZF-R1 (998cc) and FZ1 (998cc).The head office for YMIS is located

in Chennai.

About Yamaha Motor Research and Development India Pvt. Ltd

49

Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) has been established

to function as the motorcycle R&D headquarters for Yamaha Motor Co., Japan. This

initiative is intended to reinforce the global competitiveness of Yamaha’s engineering,

manufacturing and marketing functions in India. It was formally established on 18th

February 2013 and has been functional since 1st Apr 2013. It is currently operating from

the headquarters of India Yamaha Motor Pvt. Ltd., Surajpur. .YMRI is the fifth overseas

R&D headquarters for Yamaha Motor Group following Italy, Taiwan, China, and

Thailand. Yamaha Motor Research and Development India Pvt. Ltd. (YMRI) functions as

the core of the Integrated Development Center (IDC) concept. In addition to R&D

activities, global part sourcing activities have been included into the IDC. The 1st such

center was established as ASEAN Integrated Development Center in Thailand in 2012.

YMRI will contribute to Yamaha global operations by focusing on optimum utilization of

Indian resources and developing new models best suited to Indian customer requirements.

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 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

50

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.

Core competencies

Customer #1

We put customers first in everything we do. We take decisions keeping the customer in mind.

Challenging Spirit

We strive for excellence in everything we do and in the quality of goods & services we

provide. We work hard to achieve what we commit & achieve results faster than our

competitors and we never give up.

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Team-work

We work cohesively with our colleagues as a multi-cultural team built on trust, respect,

understanding & mutual co-operation. Everyone's contribution is equally important for

our success.

Frank & Fair Organization

We are honest, sincere, open minded, fair & transparent in our dealings. We actively

listen to others and participate in healthy & frank discussions to achieve the organization's

goals.

India Yamaha Motor inaugurated New Plant at Surajpur (Greater Noida)

The new Surajpur plant has been inaugurated by Mr. T.Kazikawa C.E.O & MD Yamaha

Global on 6th July 2009, which have capacity to produce 6 lakh motorcycles annually

including Fazer followed by FZ-16, FZ-S, YZF-R15 and other models. The plant capacity

can be augmented up to 1 million units. This fully integrated assembly plant is built on

the lines of Yamaha’s globally tried, tested and successfully implemented standards and

meets the global quality benchmarks. At the core are the 5-S and TPM activities that fuel

its Manufacturing Processes. The plant has 3 vehicle assembly lines and 4 engine

assembly lines including one dedicated for export engines. The engine and vehicle

assembly lines are synchronized and incorporate concepts of Unit Assurance i.e.

Complete Product Assurance, Parts Assurance through 100% kit supply on lines and

synchronization of parts storage, supply and production. The innovative production

52

processes along with high tech final assurance processes are aimed to achieve Zero

Claims at our dealers and thus, a highly satisfied customer base.

Yamaha Motor divisions

Motorcycles — Sport bikes, Star Cruiser bikes, trail bikes, road racers and

motocross racers

Commuter vehicles, including scooters

Recreational vehicles — All-terrain vehicles and snowmobiles

Boats — Powerboats, sailboats, utility boats and custom boats

Marine engines — Outboard motors, electric marine motors, marine diesel

engines and stern drives

Personal watercraft

Electric bicycles

Automobile engines

Industrial-use unmanned helicopters

Golf cars

Power products — generators, multipurpose engines, water pumps and snow

throwers

Swimming pools, waterslides and pool-related equipment

Intelligent machinery, including compact industrial robots

Electric wheelchairs and wheelchair electric drive units

Yamaha parts and accessories, apparel, cycle helmets and motor oil

Industrial robots and surface maunders

53

Key products

Motorcycles

Yamaha's first motorcycle was the 1 YA-1, which was a copy of the German DKW

RT125, and had a 125 cc, single-cylinder two-stroke engine. It was launched in February

1955 and the bike won its first race, the Mount Fuji Ascent Race, in July 1955. Yamaha

continued producing two-stroke engines until it launched the XS-1 in 1969, with a 650 cc

two-cylinder four-stroke engine, using expertise that it gained doing engine development

work for Toyota. In 1998 Yamaha marketed a revolutionary 1000cc four cylinder road

bike called the YZF 'R1', this model introduced a new style of gearbox design which

shortened the overall length of the motor/gearbox case, thereby allowing a more compact

unit. This, in turn allowed the motor to be placed in the frame far enough forward to

compliment good handling in a short wheel-based frame, a revolutionary step forward in

motorcycle design[4] In 1979, the XT500 won the first Paris-Dakar Rally. In 1995,

Yamaha announced the creation of Star Motorcycles, a new brand name for its cruiser

series of motorcycles in the American market. In other markets, Star motorcycles are sold

under the Yamaha brand. In 2007, Yamaha officially established the Philippine

operations and distributes Yamaha motorcycles under the corporate name of Yamaha

54

Motor Philippines, Inc. Today, Yamaha produces scooters from 50 to 500 cc, and a range

of motorcycles from 50 to 1,900 cc, including cruiser, sport touring, sport, dual-sport, and

off-road.

Bikes models of Yamaha in India

Yamaha crux

Yamaha Fazer

F Z 16

F Z s

F Z 1

Yamaha gladiator

Yamaha YZF

Racing

In motorcycle racing Yamaha has won 36 world championships, including 3 in Moto GP

and 9 in the preceding 500 cc two-stroke class, and 1 in World Superbike. Yamaha riders

include Giacomo Agostini, Bob Hannah, Heikki Mikkola, Kenny Roberts, Eddie Lawson,

Wayne Rainey, Jeremy McGrath, Stefan Merriman, Phil Read, Chad Reed, Ben Spies,

James Stewart and currently Jorge Lorenzo and Valentino Rossi.The Yamaha YZ450F

won the AMA Super cross Championship two years in a row, in 2008 with Chad Reed,

and 2009 James Stewart. Yamaha was the first to build a production mono shock

motocross bike (1975 for 250 and 400, 1976 for 125) and one of the first to have a water-

cooled motocross production bike (1977 in works bikes, 1981 in off-the-shelf

bikes).Since 1962, Yamaha made production road racing Grand Prix motorcycles that any

licensed road racer could purchase. In 1970, non-factory privateer teams dominated the

55

250 cc World Championship with Great Britain's Rodney Gould winning the title on a

Yamaha TD2.Yamaha also sponsors several professional ATV riders in several areas of

racing, such as cross country racing and motocross. Yamaha has had success in cross

country with their YFZ450, ridden by Bill Ballance, winning 9 straight titles since 2000.

Yamaha's other major rider, Traci Cecco, has ridden the YFZ450 to 7 titles, with the first

in 2000. In ATV motocross, Yamaha has had success with Dustin Nelson and Pat Brown,

both who race the YFZ450. Pat Brown's best season was a 3rd place title in 2007, while

Nelson has had two 1st place titles in the Yamaha/ITP Quad cross, one in 2006 and the

other in 2008.Yamaha produced Formula One engines from 1989 to 1997, initially for the

Zakspeed team, in 1991 for the Brabham BT60Y, in 1992 for the Jordan 192, from 1993

to 1996 for Tyrrell, and in 1997 for the Arrows A18. These never won a race, but drivers

including Damon Hill, Ukyo Katayama, Mark Blundell and Andrea de Cesaris scored

some acceptable results with them.

Objectives of the study

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To find out the consumer preference of Eveready

To find out the satisfaction levels towards service provide by Eveready.

To find out the major competitor of Eveready.

To study the market analysis of Eveready

To study the distribution channel of Eveready

57

Importance of the study

The importance of a project report is following.

The study will help to know that what additional features & what facilities should

be increase.

The importance of project study is that it is helpful to make future policy of the

company.

58

Scope of the study

Project aims to understand and enunciate the working process of different automobile and

evaluating its outcome in the two wheeler automobile sector. Over the past few years,

there has been tremendous progress made around the world in opening up travel and

tourism markets to the benefits of increased competition. One of the main aspects of the

project is to analyze the different products and services offered and initiatives adapted for

two wheeler automobile sector their product. Selling “intangible assets” is one of the

toughest jobs in the world. The project is more of a team effort and will incur team

returns

59

Research Methodology

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research

problem. It may be understood as a science of studying how research is don’t

scientifically. In it we study various steps that are generally adopted by researchers in

studying their research problem. It is necessary for researchers to know not only know

research method techniques but also technology. The scope of Research Methodology is

wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined,

what data has been collected and what a particular methods have been adopted and a host

of similar other questions are usually answered when we talk of research methodology

concerning a research problem or study. The project is a study where focus is on the

following points:

Research Design:-

A research design is defined, as the specification of methods and procedures for acquiring

the Information needed. It is a plant or organizing framework for doing the study and

collecting the data. Designing a research plan requires decisions all the data sources,

research approaches, Research instruments, sampling plan and contact methods. The

study was descriptive kind of research.

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Research design is mainly of following types:

1. Exploratory research.

2. Descriptive studies

3. Causal studies/Experimental studies

1. Exploratory research:-

The major purposes of exploratory studies are the identification of problems, the more

precise Formulation of problems and the formulations of new alternative courses of

action. The design of exploratory studies is characterized by a great amount of flexibility

and ad-hoc veracity.

2. Descriptive research:-

Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a substantial

amount about the research problem. Perhaps as a Result of an exploratory study, before

the project is initiated. Descriptive research is also characterized by a Preplanned and

structured design.

3. Causal studies/Experimental studies

A casual design investigates the cause and effect relationships between two or more

variables. The hypothesis is tested and the experiment is done. There are following types

of casual designs

a. After only with control design

b. Before after with control design

c. Before after without control design

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d. Consumer panel design

e. Ex-post facto design

Research Design has been classified into four subsections they are:

1. Sample selection and size;

2. Sampling procedure;

3. Data collection; and

4. Analytical tools

Sample Selection and size

The first step of research is sample selection, for which the respondents were consumers

in Varanasi city. The total consumers covered were 120. The same questionnaires were

distributed, but only 100 fully-completed questionnaires were received. Results are based

on the response of these 100 respondents, and in this 80 respondent chosen Eveready

batteries.

Sampling Procedure

There are basically two methods of sampling:-

Probability sampling

It is also known as random sampling. Under this sampling design every item of the

universe has an equal chance of inclusion in the sample. It is, so to say, a lottery method

in which individual units are picked from the whole group not deliberately but by some

mechanical process. Here it blind chance alone that determines whether one item or the

62

other is selected. The results obtained from probability sampling can be assured in terms

of probability.

Non Probability sampling

Non Probability sampling is that sampling procedure which does not afford any basis for

estimating the probability that each item in the population has been included in the

sample. In this type of sampling, items for the sample selected deliberately by the

researcher; his choice concerning the items remains supreme.

For the study the consumers are selected by the convenience sampling

method. The selection of units from the population based on their easy availability and

accessibility to the researcher is known as convenience sampling

Data Collection method

Data Collection Method

Primary Secondary

Direct personal Interview

Indirect personal Interview Govt. publication

Information from correspondents Report Committees

Mailed questionnaire & Commissions Private Publication

Question filled by enumerators Research Institute

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Published Sources Unpublished Sources

The task data collection begins after research problem has been defined. There are two

methods for data collection.

Primary data

Primary data may be described as those data that have been observed and recorded by the

researcher for the first time to their knowledge.

Secondary data

Secondary data are those data which have been already collected and analyzed by some

earlier agency for its own use; and later the same data are used by a different agency.

For the present study, the survey method was used for collecting primary data. A

structured questionnaire was used for the purpose. The questionnaire included multiple

choice questions. The main source of secondary data has been the leafy journal of

Consumer Behavior, and Indian journal of Marketing. The study employs primary data

collected by communicating with the respondents with the help of structured

questionnaire. The study mainly deals with the behavior of individual towards Consumer

Preference for Eveready Batteries in Lucknow.

Analytical Data

The data thus collected, was tabulated, interpreted and analyzed with a view to make the

study meaningful. In the present study, hypothesis testing, percentage, frequency and

cross tabulation methods have been used for analysis.

64

Percentage of Share in Indian Market

Table- 1

Company Share

Yamaha 4%

Honda 17%

TVS 12%

Bajaj Auto 23%

HeroMotoCorp 41%

Chart- 1

65

Analysis

It is found that 41 % shares are Hero Moto Corp have in the Indian market.

Interpretation

From the above analysis the researcher came to know that sale of Hero bikes is very

much in the market and it’s have the good brand image.

66

Two Wheeler sales in 2012-2013 & Growth

Table- 2

Company 2012 2013 Growth

Yamaha 44688 57160 28%

Honda 223145 319080 39%

TVS 166793 155604 -7%

Mahindra 10676 24245 127%

HeroMotoCorp 502305 530530 6%

Chart- 2

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Analysis

It is found that Mahindra Two Wheeler company growth in the Indian market is very

tremendous with 127% in 2012to 2013 and TVS is the get least sales in this year.

Interpretation

From the above analysis the researcher came to know that growth of Mahindra Two

Wheeler company is very much in the market and it’s have the good brand image,

and TVS loss its brand image.

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Ranking as Off May’13

Table- 3

Rank Company May’13 %Share

1 Hero 557890 41.49%

2 Bajaj 304780 22.67%

3 Honda 229006 17.03%

4 TVS 159346 11.85%

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5 Yamaha 49460 3.68%

6 Suzuki 38000 2.83%

7 Mahindra 6000 0.45

Chart- 3

Analysis

70

It is found that Hero Moto Corp is the first rank with 41.49% shares. And other is

least shares in this year.

Interpretation

From the above analysis the researcher came to know that growth of Hero Moto Corp

company is very much in the market and it’s have the good brand image, and other

is loss in this year.brand image.

Findings

Hero Honda has managed to put in spectacular performance going from strength

despite increase in competition; the company's sales have witnessed an uptrend,

registering an average growth of 42% in the three years under review.

Hero Moto Corp is the first rank with 41.49% shares. And other is least shares in

this year.

Mahindra Two Wheeler company growth in the Indian market is very tremendous

with 127% in 2012to 2013 and TVS is the get least sales in this year.

41 % shares are Hero Moto Corp have in the Indian market.

Two wheeler automobile sectors is the backbone of the automobile sector in India.

After deep research, analysis and getting information about companies as

formulated that the two wheeler automobile companies achieved success in the

market.

71

Throughout the study we found the Two wheeler manufacturer having very new

and modern technology in their bikes, they have a good market share in India,

many of MNC's like Honda, Yamaha ,Suzuki are also giving large competition.

Concluding the performance of the company related to two wheeler sector in

India, getting their market share and growth and what are services they are

providing after sales.

The real war is between Hero Honda and Bajaj auto. But one cannot discount the

fact that there are other players, who are gaining strength day by day.

Recommendations

After completion of the research work the researcher came to some conclusions which

could help the company in development & improvement of service process. This is

helpful in future development of the company. The following points come in the

suggestion parts which came after the analysis and conclusion of the research:-

The company should improve the quality of the product.

The company should improve its promotional activities through advertisement,

free gifts coupons etc. Since the price of the product is also an important factor

which influence the purchasing decision so the company should design the

products price according to the customer affordance level.

72

Company should instruct the sales representatives not to make extra ordinary

commitments on behalf of the company for sale.

The distribution channel should be arranged according to the convenient of the

customer.

No matter how much on organization progresses it always lack something. These

are shortcoming of every company. After completing my report on new Hero

Honda motors Ltd. I have some suggestions to offer. The suggestions can be

proved useful for the company as they have feasibility and viability.

Hero Honda Motors only manufacture a wide rand of 4-stroke bike. But in my

opinion 2-stroke bikes have a better pick up. So in order to letter to the need of a

large segment of customers, who want a better pick up bike, Hero Honda go into

the manufacture of 2-stroke bikes.

The company has always targeted urban sector of Indian population. But in the

rural sector escorts; Rajdoot enjoys a great market share. So, therefore Hero

Honda should target this upcoming market.

Hero Honda should keep a strict watch on to competitions. For instance Yamaha

has introduced a 4-stroke bike “YBK” whose features are almost same as

Splendors.

The company should work more on public relation.

73

Conclusions

The study which we conducted on the two wheeler automobile sector is a very

important topic of automobile sector.

Two wheeler automobile sectors is the backbone of the automobile sector in India.

After deep research, analysis and getting information about companies as

formulated that the two wheeler automobile companies achieved success in the

market.

Throughout the study we found the Two wheeler manufacturer having very new

and modern technology in their bikes, they have a good market share in India,

many of MNC's like Honda, Yamaha ,Suzuki are also giving large competition.

Concluding the performance of the company related to two wheeler sector in

India, getting their market share and growth and what are services they are

providing after sales.

74

Hero Honda has managed to put in spectacular performance going from strength

despite increase in competition; the company's sales have witnessed an uptrend,

registering an average growth of 42% in the three years under review.

Hero Honda has managed to achieve this because its strong brand image and

proven product quality underpinned the performance growth in recent years. Apart

from the strong brand "splendor" the company's performance across the spectrum

of the motorcycle market helped it exploit the growing demand for 4-stroke

motorcycle.

At the lower end the company has CD 100 SS at middle level splendor, passion

and Dawn the CBZ Extreme/ Karizma range is targeted at premium segment.

Some years back Hero Honda are getting stiff competition because of Bajaj, TVS and

Yamaha have a presence in 125cc bikes segments where Hero Honda has not any

presence in this segment. Now this gap is filling up by Hero Honda's new Splendor NXG,

Glamour. But still there is a gap between 150cc to 225cc segment which is most

preferable segment by youth today.

With newer and better models are coming up customer has better and bigger

choices to choose from.

It is the competition on various aspects such as price, design technology, after

sales services and even purchases offers, which provides to both buyer and seller.

Even many dealers are in view that today Hero Honda and Bajaj, thrives on

competition.

Right now it seems that the real war is between Hero Honda and Bajaj auto. But

one cannot discount the fact that there are other players, who are gaining strength

day by day.

75

Limitations of the Research

Despite all possible efforts in conducting the research there was some unavoidable

situation, which limited the scope of this dissertation. The limitations of the dissertation

fall under the following:-

1. This dissertation is confined on the basis of secondary data collected only hence it

reliable data for the study.

2. As the research is based on the data that already available and collected through

various means not includes the survey, hence it imposes limitations, as it is just possible

that the secondary data may be unsuitable or may be inadequate in the context of the topic

under study.

3. One of the major limitations of the study is that, as the data is collected though the

secondary means, hence it creates uncertainties regarding the methods of the data

76

collection, time of data collected, and any bias of the compiler during the previous

research and at the time of data collection.

4. Limitation of time & resources were a major factor influencing the research study.

5. The research guide has helped us though at the project study, yet his busy time

schedule restricted as to cut short our discussions though detailed discussions were

required for the project.

Bibliography

Books/Magazines Referred:-

Kotler, Philip & Armstrong, Graw- “Principle of Marketing”,

Pearson Education, New Delhi 2007.Publisher- Dorling

Kindersley (India) Pvt. Ltd.

Kotler, Philip- “Marketing Management”: Analysis, planning,

Implementations & control, Pearson Education, New Delhi

2003, 11 t h Ed ition.

Kothari C. R. – “Research Methodology” 2n d revised edition

2004 published by New Age International Ltd.

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Beri- “Marketing Research” (Tata Mc Graw-Hill), 1993 2 n d

Edition.

“Marketing Strategy and Management”- Mr. Michael J.

Baker.

Gupta CB-“An Introduction to Statistical Method (Vikas)”,

1995, 9 t h Edition .

Eveready In-house Newsletters.

BUSINESS MAGAZINE & NEWS PAPER:

The Times of India

The Economic Times

4Ps, Pitch, Business & Economy

Business Word& Business Standard

Business Today

Business

Internet:

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www.google.com

www.eveready.com

www. Evereadybatteries.com

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