Two Wheeler.doc

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TWO-WHEELER AUTOMOBILEINDUSTRY IN INDIANMIMS FY PT-MBA Sec B

Submitted to : Mr. Souvik Dhar

Submitted by :Sharad Gupta B011

Kunal Khanna B014

Mihin Mehta B018

rateek Sharma B0!!

"ahul Sharma B0!4

radnya Shinde B0!#

$idhi %anna B0!8

Divya %oprani B0!&

ra'ad $aik B04(


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)*K$+,- DG M $%

The satisfaction and joy that accompanies the successful completion of a task is incompletewithout mentioning the name of the person who extended his help and support in making it a

success.

We are greatly indebted to Mr. Souvik Dhar , for being a constant source ofknowledge, inspiration and help during this period of making project.


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%)B- +/ *+$% $%

Objective of the project

ntroduction to ndian automobile industry

!"# matrix representation of automobile sector among various sectors

Overview of two$wheeler sector

%leet composition of all vehicles

Two$wheeler fleet composition in ndia

&tructure of two$wheeler industry

'sage pattern of two$wheeler in ndia

(ey players in two wheeler industry

ntroduction ) *roduct mix +ero +onda ) !ajaj competitor-

*/s of marketing of +ero +onda

0arket segmentation, Targeting and *ositioning of +ero +onda.

*orters five force model for +ero +onda

&WOT analysis of +ero +onda (ari1ma-

&WOT analysis of !ajaj *ulsar-

"omparison of advertising strategy of +ero +onda and !ajaj

%uture challenges ,*lans and &uggestions


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+B *% 2 +/ %3 "+ *%:

The main objectives of the *roject study are:

2etailed analysis of 3utomobile industry which is gearing towards international

standards.

To conduct market research with regard to two$wheeler automobile industry and

understand its marketing strategies.

3naly1e the impact of 4ualitative factors on industry/s and company/s prospects

"omparative analysis of major tough competitor.

To understand the current trends in two$wheeler automobile industry .


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$%"+D5*% +$ %+ $D )$ )5%+M+B -

$D5S%"6

3utomobile is one of the largest industries in global market. !eing the leader in product and

process technologies in the manufacturing sector, it has been recogni1ed as one of the

drivers of economic growth. 2uring the last decade, well directed efforts have been

made to provide a new look to the automobile policy for reali1ing the sector5s full

potential for the economy. 3ggressive 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.

3 6ations economy is well known from its transport system. %or instant and rapid growth in

economy, a well$developed and well$networked transportation system is essential. 3s ndia5s

transport network is developing at a fast pace, ndian 3utomobile ndustry is growing too.

3lso, the 3utomobile industry has strong backward and forward linkages and hence provides

employment to a large section of the population. Thus the role of 3utomobile ndustry is very

essential in ndian economy. 7arious types of vehicles are manufactured by the 3utomobile

ndustry. ndian 3utomobile ndustry includes the manufacturing of trucks, buses, passenger

cars, defence vehicles, two$wheelers.

The two$wheeler manufacturing is dominated by companies like T7&, +onda 0otorcycle )

&cooter ndia *vt.- 8td., +ero +onda, 9amaha, !ajaj, etc.

The automobile industry in the country is one of the key sectors of the economy in terms of

the employment opportunities that it offers. The industry directly employs close to around .;


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million people and indirectly employs around < million people. The prospects of the

industry also has a bearing on the auto$component industry which is also a major sector in the

ndian economy directly employing .;= million people.

B*G Matri7 "epre'entation o )utomobile Se9tor amonvariou' Se9tor':

n an economy, different industries are present and different industries have different

growth rate as compared to the growth of the economy. n an economy, there are a

number of major industries and they all occupy different positions in the !"# matrix

according to their growth and contribution towards the economy. n the ndian economy,

some of the major sectors are %0"#, automobiles, banking and insurance, steel, telecom,

software, pharmacology and retail sectors and these can be placed in the different

positions in the matrix as shown below:

INDUSTRY BCG MATRIX

AUTOMOBIL

Market

Growth

HigBanking

So!twa

STAQUESTION

Reta

Te"e#o$


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!"# matrix is used to determine the relative position of the companies of an industry or

different &!'/s of any institution, in terms of the market growth rate and the market share of

the company in the industry. n the ndian automobile sector, the major players are 0aruti

&u1uki 8imited, #eneral motors, 0ahindra and 0ahindra, Tata 0otors, +ero +onda and

!ajaj auto. n the !"# matrix, the companies are placed in one of the following four

categories: &tar, "ash "ows, 2ogs and >uestion marks. n the &tars we place the companies

with high market growth and high market share, cash cows are the companies who have low

market growth rate and high relative market share, the category of the 4uestion marks include

the companies with low relative market share and high market growth rate and dogs include

the companies who have low relative market share and low market growth rate.

+2 "2 , +/ %,+ ,3 - " S *%+"

% ;o ,heeler ndu'try

ndian two $wheeler contributes the largest volumes amongst all the segments in automobile

industry. This segment can be broadly categori1ed into ? sub$segments vi1.@ scooters,

motorcycles and mopeds. n the last four to five years, the two$wheeler market has witnessed

CASH

Low

%M&

DOG

Hig LowRe"ati'e $arket


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a marked shift towards motorcycles at the expense of scooters. n the rural areas, consumers

have come to prefer sturdier bikes to withstand the bad road conditions. n the process the

share of motorcycle segment has grown from AB to =AB, the share of scooters declined

drastically from ??B to ;=B, while that of mopeds declined by ;B from


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!usinesses cannot consistently grow at ;=$? per cent. Each business has a tendency to taper

and plateau after attaining a particular si1e. 3n annual growth rate of < $


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indigenous manufacturing. n the C s the major growth for motorcycle segment was brought

in by Hapanese motorcycles, which grew at a rate of nearly ;=B "3#G in the last five years.

The industry had a smooth ride in the = s, F s and D s when the #overnment prohibited new

entries and strictly controlled capacity expansion. The industry saw a sudden growth in the

A s. The industry witnessed a steady growth of < B leading to a peak volume of


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%;o ;heeler leet 9ompo'ition in ndia:

S%"5*%5" +/ %,+ ,3 - " $D5S%"6

Mopeds:-

Over the last


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number of college going girls and greater participation of women in urban work force. The

product itself has gone for a complete revamp and now this category mainly consists of

gearless products. This segment is now dominated by Hapanese manufacturers with +0&

having the leadership. ++, which is a late entrant in this segment, has also cornered a

si1eable market share in the scooter segment. 3nother development in this segment is the

launch of battery operated scooters. +owever, given the high replacement cost for the

batteries, this has remained a marginal segment.

Motor cycles and bikes:-

Executive Segment

Executive segment is the largest motorcycle segment and this is the stronghold of market

leader ++. "ompetitors have tried to challenge ++ in this segment, however all such

challenges have fi11led out over time. With higher growth in economy segment, the

contribution of this segment had come below = B in %9 F. +owever over the last three

years, it has made a strong come back and now accounts for almost F B of the motorcycle

share.

Premium Segment

This segment was creation of ++ with 5"!I5 3nd J(3G I03/@ however major boost to the

segment was given by !3H3H through 5*ulsar5 which has dominated the segment. ++ has

remained a marginal player in this segment and one of the reasons for this is presence of

+0& in this segment. This segment remains a small segment in the ndian market withcontribution of around ;?B to the motorcycle industry. This is the performance segment and

customers pay a premium for the novelty. +ence constant upgradation in the product is a

re4uisite for success in this segment.


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5'a e attern o t;o ;heeler' in ndia

s 4uite different from other countries

nitial cost and fuel economy are highest priority.

8ow maintenance costs are desired.

&mall entrepreneurs and farmers conduct their business carrying loads.

7e ry limited usage for sports bike.

ndians prefer the two wheelers because of their small manageable si1e, lowmaintenance, and pricing and easy loan repayments.

Key player' in the %;o ;heeler indu'try:

+ero +onda motors ltd.

!ajaj auto ltd.

T7& motors company ltd.9amaha motors ndia

+onda motorcycle and scooters ndia


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Motorcycles in India:

!ikes comprise a major segment of ndian two wheeler industry .

Companies :


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Hero Honda Motors Ltd (HHML )

+ero +onda 0otors 8imited was established in


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K !ajaj *latinaK !ajaj 2iscover 2T&iK !ajaj *ulsar 2T&iK !ajaj Wave

K !ajaj Wind


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9amaha 0otor "orporation is the auto mobile company of Hapan


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K +onda 'nicorn

K +onda activa

$o; urther the marketin 'trate ie' o 3 "+ 3+$D) and it' 9ompetitorB) ) ;ill be analy?ed.

3 "+ 3+$D)

The "ompany was ncorporated on


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Today +ero +onda is the largest two$wheeler manufacturer in the world producing

more than ? million units of two$wheeler per year.

The company5s most popular model is the +ero +onda &plendour, which is the

world5s largest$selling motorcycle.

Over *+M % %+"or threat to

)ari8$a.

S. .!.T. A"ALYSIS !# BA-A- (+,LSA%

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ST%$"*THS:

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$aCi$:$ 9ower $aking it $o(t 9ower!:" engine o!!ere= a>.

7 New :"(ar a"(o 9ro'i=e( Digita! Speedometer+ Se!) Can%e!ing

Indi%ators whi#h i( !or the %ir(t ti$e in thi( (eg$ent in In=ia.7 -$e! e))i%ien% :"(ar ,,+## =e"i'er( an i$9re((i'e $i"eage o! 62.,


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k$9" in #it; a( #o$9are= to )ari8$a whi#h =e"i'er( 6+ k$9" in #it;.

, C$stomer 'ase In 9a(t =e#a=e Ba>a> ha( e(ta


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*+M )" S +$ +/ )D2 "% S $G S%")% 6 +/ 3 "+ 3+$D) )$D B) )

32/E5.ISI64 S.53.E40 17 +E51 +1623:-

"urrently the number one company in terms of sales and has been dominant in the two$

wheeler segment since the past decade. &ince the inception of hero +onda, the company has

been using television as a major role for its publicity. Though hero +onda was dominant in

sales it lacked the skills of creating a spectacular ad till now. Though it had a vast range of

mobiles, its advertising strategy was not up to the mark. %or its publicity hero +onda has

been using many famous celebrities like &aurav #anguly, the captain of ndian cricket team,

+ritik Goshan and other famous personalities as their brand ambassadors. Thus, hero +onda

has been spending huge amounts on its publicity.

The biggest of all is the sponsorship of the PWOG82 "'*R for which +ero +onda has the

credit of being the only two$wheeler company in the world to do so.

*resently they have tried to gain publicity by sponsoring the hockey world cup event which isthe national game of ndia. There by creating a sense oneness and 6ationalism through

providing publicity and encouragement to the game by various ad/s.

)D2 "% S $G S%")% G6 +/ B) ) :

!ajaj is always known for its outstanding ads over the period of time. &ince its

inception, !ajaj has come out with variety of ads and were always successful in their

advertisements. &cooters were well known by the brand name of !ajaj. !e it any scooter, one

used to recogni1e it by the brand name !ajaj. This was the identity a decade ago which the


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!ajaj has still maintained. !ajaj is always known for its ads without well$known brand

ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand

ambassadors unlike +ero +onda and T7&. *rior, !ajaj used to convey the feeling of

J ndianness/ in its ads. With a punch line J+amara !ajaj/ !ajaj drove into everybody/s hearts

and the title song of J6aye !harat (i 6aye Tasveer/ added a great value to its mobikes and

scooters.

3 couple of years back, !ajaj had introduced an advertisement which promoted all the

different ranges it had, wherein they had shown each product they had with a feeling of

ndianness. 7ample : Eliminator passes$by a rangoli and drives slowly sideways without

disturbing it. *eople on boxer pass$by a temple and bend their head to give a little offering.

&uch ads had revealing ndian culture had a great effect on ndians and !ajaj was successfulin most of its ads.

!ut recently, !ajaj had changed its brand logo along with its punch line i.e. J+amara

!ajaj/ got converted to J nspiring "onfidence/. The reason for this change as told by the

company officials was to keep pace with the new technologies in the fast moving world. Even

though it had changed its punch line, it didn/t have much effect on its brand image.

3 year back, !ajaj introduced 2T&i technology upgrading its always successful

*'8&3G


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/uture *hallen e' and lan':

Q S:(taining the growth rate.

Q Nee= !or inno'ation K "ow #o(t h;


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*on9lu'ion :

The o:t"ook !or In=ia ( a:to$oti'e (e#tor i( high"; 9ro$i(ing. In 'iew o!

#:rrent growth tren=( an= 9ro(9e#t o! #ontin:o:( e#ono$i# growth o!

o'er @ 9er #ent4 a"" (eg$ent( o! the a:to in=:(tr; are "ike"; to (ee

#ontin:e= growth.

Large in!ra(tr:#t:re =e'e"o9$ent 9ro>e#t( :n=erwa; in In=ia #o$

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