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8/12/2019 Ghanshyam Honda Ffff

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DECLARATION

Hereby I declare that the project report entitled A Compari on Study on !op!HR""# !$o %heeler Companie in India# ubmitted &or the de'ree o& (a ter o&

Bu ine Admini tration) i my ori'inal $or* and the project report ha not &ormed

the ba i &or the a$ard o& any diploma) de'ree) a ociate hip) &ello$ hip or imilar

other title + It ha not been ubmitted to any other uni,er ity or in titution &or the

a$ard o& any de'ree or diploma+

Date: HARSHITSHARMA

pg. 2


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ACKNOWLEDGEMENT

It i $ith immen e ati &action and pride that) I am completin' my i ertation

Project report+ I there&ore) $ould li*e to top &or a &e$ moment and than* (r+

Sandeep .ya ) /ectrur at I+S+I+() 0aipur &or allo$in' me to ta*e up my i ertation

Project on compari on tudy o& t$o $heeler companie in India + I am al o ,ery

than*&ul &or hi e1ten i,e upport) timely 'uidance and re'ular monitorin' our

pro're and pro,idin' ,aluable input &rom time to time+

A incere than* to all the re pondent ) &or partin' their ,aluable time and bein' o

patient in harin' the rele,ant in&ormation+ I al o e1pre my o,erridin' debt and

than* to my &riend ) $ithout $ho e help it $ould ha,e been impo ible to completemy project+

/a t but not the lea t) I $ould li*e to than* all tho e concerned people $ho ha,e

directly or indirectly contributed in the completion o& thi entire di ertation

Harshit Sharma

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ContentsContents................................................................................................................................4

1.1 Introduction to Indian Two-wheeler Sector:............ .............. .............. ......... ..... ..... ..... 9

1.2 Evolution of Two-wheeler Industry in India:................................................................1

1.3 !rofile Chan"e in Indian Two-#heeler Industry............. .............. .......... ...... ..... ...... ..13

1.4 $ey Earnin"s %rivers................................................................................................14

Co&'any 'rofile............................................................................................................... 1(

)istory..............................................................................................................................1*

Ter&ination of )onda +oint venture...............................................................................1,

)ero otoCor'.............................................................................................................1,

Co&'any 'erfor&ance.....................................................................................................19

2.3 Cor'orate !rofile:....................................................................................................... 19

2.4 ission state&ent:.................................................................................................... 21

2. )E/0 0T0C0/! S % TE:........................................................................... 22

2.( S.#.0.T 5SIS:................. .............. .............. .............. ............. .............. ...... .... 22

ST/E 6T)S:..................................................................................................................22

#EE$ ESS:....................................................................................................................22

2.* )E/0 0T0C0/!7S C0/E 8 ES................................................................... 24

2., !roduct ran"e of )E/0 0T0 C0/!.....................................................................2(

2.9 ; ; auto ltd......................................................................................................... 34

2.11 ; ; T07S ISSI0 :................. .............. .............. .............. ......... ..... ...... ..... ..3

2.12 S#0T nalysis.................. .............. .............. .............. .............. .............. ....... ..... ... 3(

2.13 The Inevita


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2.1 Current Situation..................................................................................................... 4(

Current !erfor&ance.................................................................................................... 4(

2.1( The Industry nalysis - =ive =orces nalysis- ................... ............ ..... ..... ..... ..4(

E>ternal Environ&ent................................................................................................... 4(

2.1* !roduct ? dvertisin" Strate"ies 0= ................ .............. .............. ...... ..... ..... ...4,

2.1, Strate"ies ? I&'le&entation................................................................................... 49

= C6 usiness odel.................................................................................................49

2.19 0ther Strate"ic Issues.............. .............. .............. .............. ............. .............. ......... .

2.2 Strate"ies for the 0verseas ar@ets............... .............. .............. .............. ..... ..... .... 1

2.21 /?%........................................................................................................................ 2

2.22 The =uture.............................................................................................................. 3

2.23 ew Strate"ies ado'ted


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C/ITICIS S.................................................................................................................... *

3.( S ! E IT.......................................................................................................... *

3.* S ! E SIFE.......................................................................................................... *(

3., ST TISTIC %ESI6 ............... .............. .............. .............. .............. .............. ....... .*(

3.9 !/I /5 % T .......................................................................................................*(

3.1 SEC0 % /5 % T ................. .............. .............. .............. .............. ............ ...... .... **

3.11 I IT TI0 S 0= ST %5............... .............. .............. .............. .............. .............. ..**

SE ...........................................................................................................................*9

/IT ST T S..................................................................................................... ,

4.4 0CC ! TI0 .......................................................................................................... ,1

4. 6E.......................................................................................................................... ,3

4.( I C0 E....................................................................................................................,4

.2 0# E/S)I! 0= T#0 #)EE E/........................................................................ ,(

.3 0ST 8IE#E% %S................................................................................................ ,*

.4 0ST I = E TI %S ............ .............. .............. .............. .............. .............. ... ,,

. EST /EC E% %S........................................................................................... ,9

.( 0ST C0 0 S0 /CE 0= %S........................................................................9

.* S0 /CE 0= /E I E I =0/ TI0 =0/ ! /C) SE %ECISI0 S...............91

., = CT0/S #)IC) 0TI8 TE ! /C) SI 6 %ECISI0 ............... ............ ..... ..... .93

.9 !/E=E//E% !/ICE / 6EBin 7s ....................................................................94

.1 / TI 6 =0/ 8 /I0 S = CT0/SB1 E ST !/E=E//E% % * 0ST!/E=E//E% ..................................................................................................................9(

.11 IS C/0SSC)EC$I 6 %0 EG............. .............. .............. .............. ............ ...... ..... 9,

!ersonal Inco&e........................................................................................................ 1 1

%e&o"ra'hy and Ins'iration.......................................................................................1 1

!enetration evel....................................................................................................... 1 1

0ther =actors............................................................................................................. 1 1

Scalin" ' Service Centers........................................................................................1 *

=ocus on Easy Credit endin"....................................................................................1 ,

pg. (


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Invest&ent in /esearch and %evelo'&ent.................................................................1 ,

=ocus on E>'orts and 6lo


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pg. ,


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1.1 Introduct on to Ind !n T"o#"$%%&%r S%ctor'

The Indian automotive industry consists of five segments: commercial vehicles; multi-utilityvehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 7, !!,"#$ units

sold in the domestic mar%et and 7 $, "' units e(ported during the first nine months of

)*!++7, the industry e(cluding tractors mar%ed a growth of $/ over the corresponding

previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid

nineties.

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

two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler

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industry had a small 0eginning in the early +1s. The 2utomo0ile 3roducts of India 23I

started manufacturing scooters in the country.

4i%es are a ma5or segment of Indian two wheeler industry, the other two 0eing scooters andmopeds. Indian companies are among the largest two-wheeler manufacturers in the world.

6ero otocorp and 4a5a5 2uto are two of the Indian companies that top the list of world

companies manufacturing two-wheelers.

The two-wheeler mar%et was opened to foreign companies in the mid '" +s. The openness

of Indian mar%et to foreign companies lead to the arrival of new models of two-wheelers into

India. 8asy availa0ility of loans from the 0an%s, relatively low rate of interest and the

discount of prices offered 0y the dealers and manufacturers lead to the increasing demand for

two-wheeler vehicles in India. This lead to the strong growth of Indian automo0ile industry.

1.( E)o&ut on o* T"o#"$%%&%r Indu+tr, n Ind !'

Two-wheeler segment is one of the most important components of the automo0ile

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

wheeler industry has 0een in e(istence in the country since '" . It consists of three

segments vi9. scooters, motorcycles and mopeds. In India there are some . 6ero otocorp is the 0iggest player in

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

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automo0ile sector. 6ero otocorp, 4a5a5 and T=> are the Indian companies and *amaha &

6onda are international automo0ile 0rand.

4a5a5 is the first Indian two wheeler automo0ile company in the mar%et since

'" with the name ?s 4achar5 trading corporation private limited. In '" " ?s 4achar5

trading corporation private limited change its name as 4a5a5 2uto @td. 4a5a5 2uto o0tains

license from the Aovernment of India to manufacture two- and three-wheelers vehicles in

'" ".

6ero otocorp otors @imited was esta0lished in '" , as a 5oint venture

0etween India1s 6ero Aroup world1s largest 0icycle manufacturers and Bapan1s 6onda

otor ompany. 2nd created the world1s single largest two wheeler company and also one

of the most successful 5oint ventures worldwide. Curing the +s, 6ero otocorp 0ecame the

first company in India. Dver '" million 6ero otocorp two wheelers running on Indian

roads today.

T=> otors is the third largest company in the two-wheeler industry with a

mar%et share of '#/. Infect, it is the only Indian company without a foreign colla0oration in

the two-wheeler industry. When the company opted out of the colla0oration with >u9u%i in

!++!, many 0elieved that T=> was headed towards e(tinction. 4ut the company proved the

doomsayers wrong and came out with a very successful ET=> =ictor1. T=> otors @td.

originally incorporated in '" ! to manufacture two-wheelers in colla0oration with >u9u%i

otors of Bapan, T=> was one of the leaders in two-wheeler industry.

*amaha otor orporation is the auto mo0ile company of Bapan

'" $ which wor%s in India since '" and providing latest technology in India from last

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1.- Pro* &% C$!n % n Ind !n T"o#W$%%&%r Indu+tr,

The demand shift from scooters to motorcycles in the '""+s was without parallel in any

compara0le product category in India. This was mainly attri0uted to the change in customers1 preference towards fuel-efficient and aesthetically appealing models, which scooter

manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear

of four-stro%e scooters 0eing prone to increased s%idding ris%s and vi0rations, and the

difficulty of maintenance also contri0uted to this shift.

Interestingly, the growth in the motorcycle segment was mainly driven 0y the demand from

rural and semi-ur0an consumers. 2n estimated #+/ of the demand for motorcycles came

from rural and semi-ur0an customers. The rise in their disposa0le incomes on account of

good monsoons in the '""+s provided the normally conservative rural and semi-ur0an

customers with e(tra money that induced them to e(periment with new, innovative products.

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S$ *t *ro/ Scoot%r to Motorc,c&%

Y%!r Tot!& In 0 O)%r!&& Gro"t$Scoot%r Motorc,c&% Mo2%d

o. / o. / o. /'""$ ', +$.$# -#. + 7+".7$ 7.! $7".+# ! .! ' . 7 !7.#'"" ',77+.!! '7.7 +.'7 7. 7!. !#.7 7. 7 ! .'"" !,!+".!$ ! . + ',+$$. ! #. # !.+' !". !$.7+ !$.7'""# !,##+.+ !+. ' ',!!$. $ #.+ +". $ $+. #!7.+ !$.#'""7 !,"#$. " ''. ' ',$+'.+ $." "7 .# $$.+ # $.7# !$.''"" $,+ !. !.# ',!#!.7+ '. ','$'.$' $7.! # . !'.$'""" $, +$. $ ''. ',$! . 7 $".+ ',$" .## '.+ # '."+ !+.+!+++ $,7 . -+. + "+'. ! .+ !,' #.+$ .+ # 7.# ' .+

Source: (SIAM). No. Number of Units (in '000)

2dvanced technology, larger wheel0ase, higher ground clearance and the a0ility to ride on

0ad roads with less effort and less danger of s%idding and decreased maintenance cost were

the other factors that encouraged customers to choose motor0i%es over other two-wheelers.

1.3 K%, E!rn n + Dr )%r+

4elow are the %ey factors, which strongly affect the auto industry: -

Go)%rn/%nt 2o& c, /2!ct on 2%tro& 2r c%+' 3etrol prices determine the running cost of

two?three wheelers e(pressed in upees per %ilometer.

3etrol prices are the highest in India as ADI su0sidi9es %erosene and diesel. 4ut with the

recent change in ADI policy to reduce the su0sidy, the prices of petrol will remain constant

at the current prices. This will have a positive effect on purchases of two?three wheelers.

I/2ro)%/%nt n d +2o+!4&% nco/%' With the increase in salary levels, due to entry ofmultinationals following li0erali9ation process and fifth pay commission, the disposa0le

income has improved e(ponentially over the years. This will have multiplier effect on

demand for consumer dura0les including two-wheelers.

C$!n %+ n 2r c%+ o* +%cond#$!nd c!r+' The second hand car prices of small cars have

come down sharply in the recent past. This will shift the demand from higher-end two-

wheelers to cars and affect the demand for two-wheelers negatively. 2 further drop in

pg. 14


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COMPANY PRO5ILE

Co/2!n, 2ro* &%

pg. 1(


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J6eroK is the 0rand name used 0y the un5al 0rothers for their flagship company 6eroycles @td. 2 5oint venture 0etween the 6ero Aroup and 6onda otor ompany wasesta0lished in '" as the 6ero otocorp otors @imited 2t Charuhera India. un5alfamily and 6onda group 0oth own !#/ sta%e in the ompany. In !+'+, it was reported that6onda planned to sell its sta%e in the venture to the un5al family.

Curing the '" +s, the company introduced motorcycles that were popular in India for theirfuel economy and low cost. 2 popular advertising campaign 0ased on the slogan 1)ill it ->hut it - )orget it1 that emphasised the motorcycle1s fuel efficiency helped the company growat a dou0le-digit pace since inception. The technology in the 0i%es of 6ero otocorp foralmost !# years '" L!+'+ has come from the Bapanese counterpart 6onda

6ero oto orp has three manufacturing facilities 0ased at Charuhera, Aurgaon in 6aryanaand at 6ardware in Httara%hand. These plants together are capa0le of churning out $ million

0i%es per year. 6ero oto orp has a large sales and service networ% with over $,+++dealerships and service points across India. 6ero otocorp has a customer loyalty programsince !+++, called the 6ero otocorp 3assport 3rogram.

The company has a stated aim of achieving revenues of M'+ 0illion and volumes of '+million two-wheelers 0y !+'#-'7. This in con5unction with new countries where they cannow mar%et their two-wheelers following the disengagement from 6onda, 6ero oto orphopes to achieve '+ per cent of their revenues from international mar%ets, and they e(pectedto launch sales in igeria 0y end-!+'' or early-!+'!. In addition, to cope with the newdemand over the coming half decade, the company was going to 0uild their fourth factory in>outh India and their fifth factory in Western India. There is no confirmation where thefactories would 0e 0uilt.

H +tor,

6ero oto orp was started in '" as 6ero otocorp otors @td. '" # -- )ormation of6ero ycles in @udhiana ma5estic auto limited

19* -- )ero Cycles


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2 2 -- )ero otocor' &otorcycle %awn and )ero otocor' &otorcycle &


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West 2sia. O 6ero is free to use any vendors for its components instead of 5ust 6onda-approved vendors.

Co/2!n, 2%r*or/!nc%

Curing the fiscal year !++ -+", the company sold $.7 million 0i%es, a growth of '!/ overlast year. In the same year, the company had a mar%et share of 7/ in the Indian mar%et.6ero otocorp sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. 6ero otocorp1s 0i%e 6ero otocorp >plendor sells morethan one million units per year.

2s early as in '"#+


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The 5oint venture 0etween India1s 6ero Aroup and 6onda otor ompany, Bapan has

not only created the world1s single largest two wheeler company 0ut also one of the most

successful 5oint ventures worldwide.

Curing the +s, 6ero otocorp 0ecame the first company in India to prove that it

was possi0le to drive a vehicle without polluting the roads. The company introduced new

generation motorcycles that set industry 0enchmar%s for fuel thrift and low emission. 2

legendary 1)ill it - >hut it - )orget it1 campaign captured the imagination of commuters across

India, and 6ero otocorp sold millions of 0i%es purely on the commitment of increased

mileage

Dver '" million 6ero otocorp two wheelers tread Indian roads today. These are

almost as many as the num0er of people in )inland, Ireland and >weden put togetherP

6ero otocorp has consistently grown at dou0le digits since inception; and today,

every second motorcycle sold in the country is a 6ero otocorp. 8very $+ seconds,

someone in India 0uys 6ero otocorp1s top -selling motorcycle L >plendor. This festiveseason, the company sold half a million two wheelers in a single monthQa feat unparalleled

in glo0al automotive history.

6ero otocorp 0i%es currently roll out from two glo0ally 0enchmar%ed

manufacturing facilities 0ased at Charuhera and Aurgaon in 6aryana. These plants together

are capa0le of churning out $." million 0i%es per year. 2 third state of the art manufacturing

facility at 6ardwar in Httranchal will soon 0e commissioned to cope with sustained customer

demand.

6ero otocorp1s e(tensive sales and service networ% now spans over $+++ customer

touch points. These comprise a mi( of dealerships, service and spare points, spare parts

stoc%iest and authori9ed representatives of dealers located across different geographies.

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(.7 HERO MOTOCORP0S MANDATE'

6ero otocorp is a world leader 0ecause of its e(cellent manpower, proven

management, e(tensive dealer networ%, efficient supply chain and world-class products with

cutting edge technology from 6onda otor ompany, Bapan. The teamwor% and

commitment are manifested in the highest level of customer satisfaction, and this goes a long

way towards reinforcing its leadership status

(.8 S.W.O.T ANALYSIS'

STRENGTHS:

6ero otocorp introduced )irst stro%e 0i%e in the Indian mar%et.

6ero otocorp gives + Fm?@iter 2vg.

6uge sale networ% $ ++ Cealers .

4etter sale service.

It has the highest share in automo0ile sector.

It has a good 0rand image.

It gives 0etter service for customers.

4est customer preference.

Ce0t eGuity ratio is only +.'.

The company has clarified a0out its intention of setting a third plant in addition to its

e(isting two plants. The company has em0ar%ed upon a green field e(pansion plan

and has earmar%ed s ! 0n for the same. It should 0e noted that the company has a

strong cash flow position; it generated s " 0n from operation in )*+ and is

virtually a de0t free company.

WEEKNESS:

>uppose to 0e very sophisticated.

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(.9 HERO MOTOCORPS CORE :ALUES

espect for 6uman 4eings.

Is a responsive organi9ationRIs a 0oundary less organi9ationR

Is striving for e(cellence.

3rovide fearless, en5oya0le wor%ing environment.

Is self-reliant.

3roviding learning environment.

Is a caring organi9ationR

8na0les relationship 0uildings.

3rompts transparency & trust.

Is creativity promoting.

Is performance orientedR

pg. 24


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pg. 2


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(.; Product r!n % o* HERO MOTO CORP

Scooters

H%roHond!

P&%!+ur%

pg. 2(

H%ro Motocor2 P&%!+ur%

M!nu*!ctur%r 6ero otocorp motorcycle

@td.

Product on !++ -present

Pr c% s. $7""+

En n% '+! cc, 70hpS 7+++ rpm,

torGue +.7 %g- m S +++ rpm


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Motorcycles

C Cawn

C Celu(e

>plendour

>plendour UA

3assion pro

3assion plus

>uper >plendour

Alamour

Alamour 3A )'

pg. 2*


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2chiever

4V UT 8 8

6H F

Fari9ma

Fari9ma V

5%!tur%+ o* ! *%" 4


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CD D%&u=%

pg. 29

CD D%&u=%

M!nu*!ctur%r 6ero otocorp motorcycle @td.

Product on !++7-present

Pr c% s. +,+++

En n% "7.! cc, 7.7 psS 7 ++ rpm,

torGue+.77 %g -m S#+++ rpm


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S2&%ndor >

pg. 3

S2&%ndor >


Product on !++$-present

Pr c% s. +, ++

En n% "7.! cc, 7.7 psS +++ rpm,

torGue7." -m S +++ rpm


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Hun<

pg. 31

Hun<


Product on !++7-present

Pr c% s. #$,+++

En n% ' + cc, ' . psS ++ rpm,

torGue'!. -m S# ++ rpm


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pg. 32


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K!r ?/!

@MR

pg. 33

K!r ?/! @MR


Product on !++"-present

Pr c% s. "',+++

En n% !!$ cc, '7.#0hpS 7+++ rpm,

torGue' .$ -m S#+++ rpm


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(. BA A !uto &td

>ince '" #, there is a technical tie-up of 4a5a5 2uto @td. with Fawasa%i 6eavy

Industries of Bapan to manufacture state-of-art range of latest two-wheelers in India. The B=

has already given the Indian mar%et the F4 series, > and > hampion, 4o(er, the ali0er

series, and Wind'!

Fawasa%i 6eavy Industries is a )ortune ++ company with a turnover of H>C '+

0illion s. , + crore . It has crafted new technologies for more than hundred years. The

technologies of F6I have redefined space systems, aircrafts, 5et engines, ships, locomotive,

energy plants, automation system, construction machinery, and of course high relia0ility

two-wheelers

F6I has given the world its legendary series of #++-'!++cc in5a and '#++ =ulcan

0i%es. >traight from its design 0oards, the Fawasa%i 4a5a5 8liminator, India1s first real

cruiser 0i%e, redefines the pleasure of N0i%ingN in loo%s as well as performance.

(.1 Cor2or!t% Pro* &%

1Inspiring onfidence,1 the tagline, has 0uild up confidence, through e(citement

engineering, not only to domestic consumers 0ut also internationally. 8sta0lished 5ust eight

decades 0ac% in '"!# 0y Bamnalal 4a5a5, the company has 0een vested with India1s largest

e(porter of two and three wheelers, '"#,7'+ units in !++ -+ , a great !# per cent 5ump over

the previous year.

pg. 34


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4a5a5 2uto @td. sales have increased 0y appro(imately !' per cent in the year !++ -

+ , which e(ceeds s # . 0illion, a record in the history of the company. The gross

operating profit stands at s. ".$ 0illion, again a record. The profits after ta( of the 42@ are

close to s. 7.7 0illion, and the pre-ta( return on operating capital is at an impressive + per

cent.

The strength of the company is its Guality products, e(cellence in engineering and

design, and its a0ility to delight the customers. The 3ulsar, introduced in ovem0er !++ , is

continually dominating the premium segment of the motorcycle mar%et, helping to maintainthe mar%et superiority. Ciscover CT>i, one more successful 0i%e on Indian roads, is in the

1value1 segment of the motorcycle mar%et. It incorporates a high degree of power with fuel

efficiency of a '++ cc motorcycle.

42@ is committed to prevention of pollution, continual improvement of environment

performance and compliance with all environmental legislation and regulations. They always 0elieve in providing the customer 1value for money1 and %eep an special eye upon Guality,

safety, productivity, cost and delivery.

(.11 BA A AUTOS MISSION'

We at 4a5a5 2uto continue to firmly 0elieve in providing the customer =alue for

money, for years through our products and services. This we shall maintain and improve,

In our decision ma%ing, Guality, safety and service will 0e given as much

consideration as productivity, cost and delivery.

pg. 3


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uality shall 0e 0uilt into every aspect of our wor% life and 0usiness operations.

uality improvements and customer satisfaction shall 0e the responsi0ility of every

employee.

(.1( SWOT An!&,+ +

@et1s analy9e the position of 4a5a5 in the current mar%et set-up, evaluating its strengths,

wea%nesses, threats and opportunities availa0le.

Strengths

6ighly e(perienced management.

3roduct design and development capa0ilities.

8(tensive & C focus.

Widespread distri0ution networ%.

6igh performance products across all categories.

6igh e(port to domestic sales ratio.

Areat financial support networ% )or financing the automo0ile

6igh economies of scale.

6igh economies of scope.

Weaknesses

6asn1t employed the e(cess cash for long.

pg. 3(


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>till has no esta0lished 0rand to match 6ero otocorp1s >plendor in commuter

segment.

ot a glo0al player in spite of huge volumes.

ot a glo0ally recogni9a0le 0rand unli%e the B= partner Fawasa%i

Opport n!t!es

Cou0le-digit growth in two-wheeler mar%et.

Hntapped mar%et a0ove ' + cc in motorcycles.

ore maturity and movement towards higher-end motorcycles.

The growing gearless trendy scooters and scooterette mar%et.

Arowing world demand for entry-level motorcycles especially in emerging mar%ets

Threats

The competition catches-up any new innovation in no time.

Threat of cheap imported motorcycles from hina.

argins getting sGuee9ed from 0oth the directions 3rice as well as ost

(.1- T$% In%) t!4&% C$!n %

4a5a5 on internal analysis found that it lac%ed L

'. The technical e(pertise to deliver competitive goods.

pg. 3*


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!. The design %now-how.

$. 2nd the immediate ina0ility to support the onslaught of competitors.

2ll these forced 4a5a5 to loo% for an international partner who could 0ring in

technology and also offer some 0asic platforms to 0e manufactured and mar%eted in India.

Fawasa%i of Bapan is a world-renowned manufacturer of high performance 0i%es. 4a5a5

entered into a strategic tie-up with Fawasa%i in late '""+s to enhance its product line and

%nowledge up-gradation to support long-term strategies.

This served the purpose of sustaining the mar%et competition for a while. )rom '""#

to !+++, 4a5a5 invested hugely in infrastructure while simultaneously developing product

design and innovation capa0ilities, which is the prime reason 0ehind the energetic 4a5a5 of

!'st century. 4a5a5 introduced a slew of products right from entry-level motorcycle to the

high premium segment right from !++' onwards, and since then its raining success all theway for 4a5a5.

@ast Guarter, 4a5a5 had impressive performance growing at a rate of !+/ when the

largest manufacturer grew at 5ust #/. This stands a testimony to the various important

strategic decisions over the past decade.

pg. 3,


39/118

(.13 Product r!n % o* B!6!6

otorcycles:

3H@>2 '$ @>

3H@>2 ' + CT>-i

3H@>2 ' + CT>-i

3H@>2 !!+ CT>-i

CI> D=8 '$ CT>-i

CI> D=8 CT>-i

3@2TI 2 '!

3@2TI 2 '++

2=8 A8 !++ CT>-i

F2W2V2FI I B2 ! +

pg. 39


40/118

5%!tur%+ o* ! *%" 4


41/118

pg. 41


42/118

3H@>2

!!+ CT>-i

pg. 42

B!6!6 Pu&+!r (( DTS#

M!nu*!ctur%r 4a5a5 2uto


Pr c% s. 7 ,!++

En n% !!+ cc ,!'.+ S ++ 3s S 3'".'! S 7+++ m S 3


43/118

CI> D=8

'$ CT>-i

pg. 43

B!6!6 D +co)%r DTS#



Pr c% s. 7+++- "!++

En n% '$ ,".# %w '$.'+ ps S++rpm,''. nm S # ++ rpm ? '.!' %gm


44/118

3@2TI 2

'! cc

pg. 44

B!6!6 P&!t n!


Product on !++#-present

Pr c% s. $ #!'

En n% '! , . 3>

S7+++rpm,'+ S +++rpm.


45/118


46/118

(.17 Curr%nt S tu!t on

Curr%nt P%r*or/!nc%.

X 42@ is currently outperforming the industry growth rate in two-wheeler segment with

$!/ growth in year !++ -+ v?s industry growth of '"/.

X ar%et share in otorcycles is improving with every passing year. It has also increased

from ! / in !++ -+ to $'/ in !++ -+#.

X 2nnual turnover for the year !++ -+# is s. '.+# 0illion v?s s. #$.!$ 0illion a year

0efore - an increase of ! / which is very healthy.

X 42@ has significant presence in all the three 0asic segments - 3rice >egment, =alue

>egment and 3erformance >egment - and has 0een showing increased sales in all the

segments over years.

4esides this, 42@ is a mar%et leader in two-wheeler e(ports and it consists a great chun% of

there overall revenues. urrently, 42@ is selling over ' lac motorcycles annually in >ri

@an%a, further, they are commanding +/ mar%et share in entral 2merica.

(.18 T$% Indu+tr, An!&,+ + # 5 )% 5orc%+ An!&,+ +#BAL

E=t%rn!& En) ron/%nt

Indu+tr,' 2utomo0iles: Two Wheelers

S% /%nt+' 3resence in all segments

pg. 4(


47/118

Entr, B!rr %r+'

8ntry 0arriers are high.

X The mar%et runs on high economies of scale and on high economies of scope.

X The need for technical e(pertise is high.

X Dwning a strong distri0ution networ% is important and is very costly.

2ll these ma%e the 0arrier high enough to 0e a deterrent for new entrants.

Su22& %r B!r ! n n Po"%r'

>uppliers of auto components are fragmented and are e(tremely critical for this industry

since most of the component wor% is outsourced. 3roper supply chain management is a

costly yet critical need.

Bu,%r0+ B!r ! n n Po"%r'

4uyers in automo0ile mar%et have more choice to choose from and the increasing

competition is driving the 0argaining power of customers uphill. With more models to

choose from in almost all categories, the mar%et forces have empowered the 0uyers to a large

e(tent.

Indu+tr, R )!&r,'

The industry rivalry is e(tremely high with any product 0eing matched in a few months 0y

competitor. This instinct of the industry is primarily driven 0y the technical capa0ilities

acGuired over years of gestation under the technical colla0oration with international players.

Su4+t tut%+'

There is no perfect su0stitute to this industry. 2lso, if there is any su0stitute to a two-wheeler, 4a5a5 has presence in it. ars, which again are a mode of transport, do never

directly compete or come in consideration while selecting a two-wheeler, cycles do never

even compete with the low entry level moped for even this choice comes at a comparatively

higher economic potential.

>ummari9ing the industry analysis, it can 0e said that the two-wheeler mar%et is attractive as

it scores well on three out of five categories

pg. 4*


48/118

(.19 Product Ad)%rt + n Str!t% %+ O5 BAL

The focus of 42@ off late has 0een on providing the 0est of the class models at competitive

prices. ost of the 4a5a5 models come loaded with the latest features within the price 0and

accepta0le 0y the mar%et. 42@ has 0een the pioneer in stretching competition into providing

latest features in the price segment 0y updating the low price 0i%es with the latest features

li%e dis%-0ra%es, anti-s%id technology and dual suspension, etc.

42@ adopted different mar%eting strategies for different models, few of them are discussed

0elow: -

K!"!+!< 3S # )irst attempt 0y 0a5a5 to ma%e a mar% in the motorcycle segment. The target

customer was the father in the family 0ut the target audience of the commercial was the son

in the family. The time at which Fawasa%i > was launched 6ero otocorp was the mar%et

leader in fuel-efficient 0i%es and *amaha in the performance 0i%es.

The commercial of Fawasa%i > had the punch line NFyun 6eroN means Nnow what heroN

which reflected the aggressiveness in the mar%eting front 0y the company.

Bo=%r # It too% the reins from where the Fawasa%i > left. Target was the rural population

and the price sensitive customer. 4o(er mar%eted as a value for money 0i%e with great

mileage. @arger wheel0ase, high ground clearance and high mileage were the selling factors

and it was in direct competition to 6ero otocorp Cawn and >u9u%i U'++.

C!& 4%r # The focus for the ali0er '' was youth. 2nd though 4a5a5 made the 0i%e loo%

0igger and feel more powerful than its predecessor characteristics that will attract the

average, ! -plus, e(ecutive segment 0i%e 0uyer , its approach towards advertising is even

more radically different this time around. 4a5a5 gave the mandate for the ad campaign to

@owe, pic%ing them from the cliGue of three agencies that do promos for the company the

other two 0eing @eo 4urnett and D& . Aoing 0y the initial mar%et response, the campaign

pg. 4,


49/118

was clearly a hit in the -'+ years age 0rac%et. >o, the teaser campaign and the emphasis on

the ali0er '' 0eing a `Hoodibabaa' 0i%e placed it as a trendy motorcycle for the college-

goers and the ! plus e(ecutives 0oth at the same time.

Pu&+!r # 3ulsar was launched in direct competition to the 6ero otocorp1s 1 4V1 model in

' + cc plus segment. The campaign 0eared innovative punch line of NCefinitely aleN

positioning 3ulsar to 0e a masculine-loo%ing model with an appeal to the performance

sensitive customers. The 3ulsar went one step ahead of 6ero otocorp1s 1 4V1 and launched

a twin variant of 3ulsar with the ' + cc model. The model was a great success and has

already crossed ' million mar% in sales.

D +co)%r # The same CT>I technology of 3ulsar e(tended to '! cc Ciscover was a greatsuccess. With this, 4a5a5 could reali9e its success riding on the 0ac% of technological

innovation rather than the 5oint venture way followed 0y competitors to gain mar%et share.

(.1; Str!t% %+ I/2&%/%nt!t on5MCG Bu+ n%++ Mod%&

42@ now is ta%ing a leaf out of the ) A 0usiness model to ta%e the company to greater

heights.

4a5a5 has %ic%ed off a pro5ect to completely restructure the company1s retail networ% and

create multiple sales channels.

Dver the ne(t few months, the company will set-up separate sales channels for every

segment of its 0usiness and consumers. 4a5a5 2uto1s entire product portfolio, from the entry-

level to the premium, is 0eing sold 0y the same dealers. The restructuring will involve

separate dealer networ%s catering to the ur0an and rural mar%ets as well as its three-wheeler

and premium 0i%es segments.

4a5a5 2uto also plans to set-up an independent networ% of dealers for the rural areas. The

needs of financing, selling, distri0ution and even after-sales service are completely different

in the rural areas and do not ma%es sense for city dealers to control this. The company alsopg. 49


50/118


51/118

(.( Str!t% %+ *or t$% O)%r+%!+ M!r


52/118

new step-through model for the Indonesian mar%et, 0ut for now it will create a 0ase there

with its motorcycle models.

4a5a5 has also made a 0eginning 0y selling 0i%es in the 3hilippines 0randed in the name of its

technical partner, Fawasa%i. The two signed an oH in )e0ruary. Fawasa%i, a large multi-

product conglomerate, only ma%es high-end 0i%es and does not have su0-!++cc models.

Fawasa%i is mar%eting the new model, Wind '! , developed 0y 0oth companies, in the

3hilippines. The 4a5a5-developed models, ali0er and 4y%, which is a fuel-efficient 0i%e, are

also 0eing distri0uted 0y Fawasa%i. This is a good 0eginning strategically for Fawasa%i to

evince interest in 4a5a5 products for mar%ets which can still 0uy less than ' + cc.

(.(1 R D

4a5a5 2uto has a huge, e(tensive and very well-eGuipped esearch and Cevelopment wing

geared to meet two critical organi9ational goals: development of e(citing new products that

anticipate and meet emerging customer needs in India and a0road, and development of eco-

friendly automo0ile technologies.

While the manpower strength of the &C represents a cross-section of in-depth design and

engineering e(pertise, the company has also 0een investing heavily in the latest,sophisticated technologies to scale down product development lifecycles and enhance testing

capa0ilities

4a5a5 2uto &C also en5oys access to the speciali9ed e(pertise of leading international

design and automo0ile engineering companies wor%ing in specific areas.

4ased on their own 0rand of glo0ali9ation, they have 0uilt their distri0ution networ% over #+

countries worldwide and multiplied the e(ports from '/ of total turnover in )iscal '" "-"+to over / in )iscal '""#-"7.

The countries where their products have a large mar%et are H>2, 2rgentina, olom0ia, 3eru,

4angladesh, >ri @an%a, Italy, >weden, Aermany, Iran and 8gypt. 4a5a5 leads olom0ia with

# / of the scooter mar%et, in Hruguay with $+/ of the motorcycle mar%et and in

4angladesh with " / of the three-wheeler mar%et.

pg. 2


53/118

>everal new models are 0eing developed specifically for glo0al mar%ets and with these the

company will progressively endeavor to esta0lish its presence in 8urope too.

(.(( T$% 5utur%

2lthough the avalanche of motorcycles offered Indian consumers a wide variety of models to

choose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts, technology enhancements and up-gradations and styling. Their margins came under

pressure as mar%eting costs escalated.

The companies were forced to reduce prices and offer discounts to survive the competition.

oreover, analysts were s%eptical a0out the segment1s a0ility to maintain the growth rate in

the years to come. Dne of the ma5or assumptions underlying the motorcycles rush was that if

the mar%et was considera0ly large and was growing at a constant pace, there was room for a

profita0le e(istence for all 0rands.

In !++', there were over $+ motorcycle 0rands in the mar%et. 6owever, with the top five

0rands accounting for more than #+/ of the mar%et, only +/ of the mar%et was availa0le

for all other new 0rands put together. Cespite the launch of more vehicles, the survival

prospects of many of the individual 0rands were deemed to 0e rather 0lea%.

)urther, the growth in the motorcycle segment was dependant on continuing favora0le

mar%et conditions. 2nalysts claimed that to sustain this growth rate, the segment would have

to completely canni0ali9e the mar%et for scooters and a considera0le part of the mar%et for

scooters and mopeds.

onsidering the fast growing scooter segment, with high demand from female customers,

followed 0y the moderately growing moped segment and the restructuring in the scooter

segment with ma5or national and foreign players reinforcing their presence, it was unli%ely

that the entire growth in the two-wheeler sector would 0e due to motorcycles.

pg. 3


54/118

2nalysts also commented that as the two-wheeler industry had grown steadily for eight

years, stages in the product life cycle would apply to the field sooner, rather than later and

the decline stage would invaria0ly come some day. There was little differentiation 0etween

the 0rands 0eing launched apart from styling as most companies had introduced their four-stro%e vehicles.

With the failure of the 5oint ventures, the e(pected introduction of cheaper hinese 0rands,

stringent emission norms and threat from ma5or international players, the survival of

indigenous 0rands loo%ed uncertain. onstrained with the ruling price levels in the mar%et

place, limited infrastructure and lac% of technological innovations when compared to their

foreign counterparts, whether the Indian companies would succeed in generating the %ind of

volumes needed to sustain in the competitive motorcycle mar%et, remains to 0e seen.

(.(- N%" Str!t% %+ !do2t%d 4, B!6!6

a5or emphasis to 0e on new product launches.

6ave a new scooter mar%et under development L will 0e launched early !+'+.

3lan to launch a three-wheeled motorcycle, to cater to a niche segment.

4a5a5 e(pects stronger growth in the first Guarter of )*1'+ powered 0y the continuing success of the

U C '$ CT>->i as also the launch of product upgrades off the 3ulsar platform

2s a result of the recent sta%e hi%e 0y 4a5a5 2uto, FT now has a5iv 4a5a5 on its 0oard and the

cooperation agreement 0etween the two companies covers product development, technology, vendor

sourcing and distri0ution.

E= +t n Product+ N%" L!unc$0+ n (B!6!6 4a5a5 Fristal CT>i U C '$ CT>i Pulsar U C >print Ciscover '$ CT>i isco!er "00 #S$Si 3latina '++, '! CT>i %a&asa i Nin a *0+

pg. 4


55/118


56/118

6onda1s dream for India is to not only manufacture !-wheelers of glo0al Guality; 0utalso meet and e(ceed the e(pectations of Indian customers with outstanding after sales

support. They aim to produce technologically superior, efficient and reasona0ly priced !-

wheelers, with 6onda tested technology, 0ac%ed up with after sales service of 6onda1s glo0al

standard.

(.(8 CORPORATE PRO5ILE

6onda otor o., @td., operates under the 0asic principles of N espect for the

IndividualN and NThe Three BoysN-commonly e(pressed as The Boy of 4uying, The Boy of

>elling and The Boy of reating. espect for the IndividualN reflects our desire to respect the

uniGue character and a0ility of each individual person, trusting each other as eGual partners

in order to do our 0est in every situation. 4ased on this foundation of espect for the

Individual, NThe Three BoysN e(presses our 0elief and desire that each person wor%ing in, or

coming into contact with our company, directly or through our products, should share a

sense of 5oy through that e(perience.

In line with these 0asic principles, since its esta0lishment in '" , 6onda otor o.,

@td., has remained on the leading edge 0y creating new value 0y providing products of the

highest Guality at a reasona0le price, for worldwide customer satisfaction. In addition, the

ompany has conducted its activities with a commitment to protecting the environment and

enhancing safety in a mo0ile society.

The ompany has grown to 0ecome the world1s largest motorcycle manufacturer and

one of the leading automa%ers. With a glo0al networ% of Y su0sidiaries and affiliates

accounted for under the eGuity method, 6onda develops, manufactures and mar%ets a wide

pg. (


57/118

variety of products ranging from small general-purpose engines and scooters to specialty

sports cars, to earn the ompany an outstanding reputation from customers worldwide.

(.(9 M ++ on St!t%/%nt

aintaining a glo0al viewpoint, we are dedicated to supplying products of the

highest Guality at a reasona0le price for worldwide customer satisfaction.

(.(; SWOT An!&,+ +

Strength

elia0le 0rand name

2fforda0le price

6onda have a 0ig share of mar%et in scootreats segment

6onda is the first company who introduced the technology of central shoc%

a0sorption in India

6onda having high tech engines

6 >I is the su0sidiary company of 6onda otors @td. Which is the largest company

in the proposed sector

Weakness

@ess num0er of service center

ar%et share very less as compare to there competitor

>pares parts are not easily availa0le

@ow product range

pg. *


58/118

aintenance cost is very high

Opport n!ty

Increase in product range

Hntapped mar%et a0ove ' + cc in motorcycles.

ore maturity and movement towards higher-end motorcycles

6onda can 0e use 0rand image of 6ero otocorp

Threats

There is high competition in the mar%et

Threat of cheap imported motorcycles and components from hina

(.( PRODUCT RANGE'

SCOOTERS'

CID

2 TI=2

2=I2TD

MOTORCYCLES'

4 TWI>T8

>6I 8

4) >TH 8

pg. ,


59/118

H I D

4) >TH 8 3A )I

4'+++

4 '+++

5%!tur%+ o* ! *%" 4


60/118

4 TWI>T8

pg. (

CB T" +t%r

M!nu*!ctur%r 6onda otors @td.

Product on !+'+ D W2 C>

Pr c% s ,+++

En n% ''+cc,"0hpS +++

rpm," mS#+++rpm


61/118

pg. (1


62/118

pg. (2


63/118

4)

>TH 8

3A )I

pg. (3

4) >TH 8 3A )I


Product on !+'+ D W2 C>

Pr c% s ,+++

En n% '! cc,''.#0hpS +++

rpm,''.! mS#! +rpm


64/118

H I D

pg. (4

H I D



Pr c% s #$,+++

En n% ' +cc,'$.$0hpS +++ rpm,'!. -

mS ++rpm.


65/118

(.- M!r


66/118

The 0i%e segment has a mar%et growth rate of $/ with 6 >I having a share of ' / The

0iggest rival in this segment is 6 >II having a mar%et share of

7.7/. The nearest rival in this segment is T=> motors with a share of ' .7/.

(.-1 Str!t% , o* r )!&+ :+ HMSI

In !++7, out of every '++ two-wheelers sold in the country - only '! were scooters. That

num0er went up to '# in the past financial year and is pro5ected to 9oom to almost !+ this

year. Therecooter manufacturers said the '.' million-strong domestic mar%et was e(pected to cross !

million units in the ne(t four years. That e(plains the entry of a host of newer players in the

segment, such as ahindra-Finetic and *amaha. >ensing competition, the esta0lished

players Q 6onda, T=> otors, 4a5a5 2uto, 6ero otocorp and >u9u%i Q have hit the

drawing 0oard once again, to pull out flashy, high-powered and un-geared scooters.

>cooter production stands at roughly !+/ of the overall two-wheeler production

Y%!r T"o W$%%&%r+ Product on FB +coot%r+!++ -+ ,+7#,!!'!++ -+# ,#!!,7 '

!++#-+7 #, !", !"!++7-+ 7,#+ ,#"7!++ -+" , ##,###!++"-'+ ,+!#,# '

!++'+-'' , ' ,#!#

6 >I has per cent mar%et share, followed 0y T=> otors with '" per cent and 6ero

otocorp with ' . per cent and 4a5a5 managing a ''/ mar%et share.

pg. ((


67/118

M!rI products are priced relatively higher than other

companies in the mar%et.

(.-3 Str!t% , !do2t%d 4, T:S B!6!6 *or ncr%!+ n +!&%+ !nd count%r nro"t$ o* HMSI

pg. (*


68/118

ost companies currently produce scooters in the '++-'! cc range that are targeted at

customers who want higher mileage and are ready to compromise on power. Aenerally, an

entry-level 0i%e '++cc is more powerful and economical than a gearless scooter.

To counter this, companies are wor%ing on scooter models that generate higher power

without undermining the fuel economy. The result will 0e a product that matches the

performance of motorcycles while 0eing more comforta0le, agile and easy on the poc%et.

They also aim at developing 8- scooters

hennai-0ased T=> otors, ma%ers of >cooty, are developing a premium un-geared

scooter that will 0e more powerful and superior on design and styling. The company

is learnt to have developed a new platform, much more powerful than the "+cc>cooty.

The countryI. This product will 0e high on power output, li%e the company


69/118

somewhere around #+ thousand. This pricing strategy of 6onda has paid well and now they

are planning to penetrate the gap 0etween the e(isting '++cc and '! cc segments 0y

launching a new feature laden and technologically sound '++cc 0i%e. 2gain 6onda has

clearly announced that the price of this 0i%e won


70/118

8@2TI=8 2 F8T >62 8

pg. *

STAR

>cooters

Ju%+t on M!r<

4i%es

'+

CASH COW

+

DOG


71/118


72/118

RESEARCH DESIGN

-.( STATEMENT O5 PROBLEM

Dne of the ma5or pro0lem is the negative growth 0eing faced 0y companies in the

two wheeler industry. The two wheeler industry has 0een shrin%ing continuously.

)rom a pea% of over +/ growth it is currently facing a growth of -'!/ in the

second Guarter of. 8(hi0it shows the recent trends.

pg. *2


73/118

The a0ove e(hi0it shows the Ce-growth in the industry.

-.- HYPOTHESIS

pg. *3


74/118

N ll Hypothes!s H : There is a negative growth in the two wheeler industry

Alternat!"e Hypothes!s , H 1: There is no negative growth in the two wheeler industry.

-.3 AIMS AND OB ECTI:ES

To study and compare the top three companies 68 D DTD D 3,42B2B,&

6 >I

To compare and analy9e the product strategies of these three companies.

To find out the reasons for change in growth of two wheeler industry.

-.7 SAMPLING TECHNIJUE

on-pro0a0ility sampling techniGue Con)%n %nc% S!/2& n was used for collecting data

from the consumers for the survey.

onvenience sampling is a non-pro0a0ility sampling techniGue where su05ects are selected 0ecause of their convenient accessi0ility and pro(imity to the researcher.

The su05ects are selected 5ust 0ecause they are easiest to recruit for the study and theresearcher did not consider selecting su05ects that are representative of the entire population.

In all forms of research, it would 0e ideal to test the entire population, 0ut in most cases, the population is 5ust too large that it is impossi0le to include every individual. This is the reason

why most researchers rely on sampling techniGues li%e convenience sampling, the mostcommon of all sampling techniGues. any researchers prefer this sampling techniGue 0ecause it is fast, ine(pensive, easy and the su05ects are readily availa0le.

E AMPLES

Dne of the most common e(amples of convenience sampling is using student volunteers assu05ects for the research. 2nother e(ample is using su05ects that are selected from a clinic, aclass or an institution that is easily accessi0le to the researcher. 2 more concrete e(ample ischoosing five people from a class or choosing the first five names from the list of patients.

pg. *4


75/118

In these e(amples, the researcher inadvertently e(cludes a great proportion of the population.2 convenience sample is either a collection of su05ects that are accessi0le or a self selectionof individuals willing to participate which is e(emplified 0y your volunteers.

USES

esearchers use convenience sampling not 5ust 0ecause it is easy to use, 0ut 0ecause it alsohas other research advantages.

In pilot studies, convenience sample is usually used 0ecause it allows the researcher to o0tain 0asic data and trends regarding his study without the complications of using a randomi9edsample.This sampling techniGue is also useful in documenting that a particular Guality of a su0stanceor phenomenon occurs within a given sample. >uch studies are also very useful for detectingrelationships among different phenomena.

CRITICISMS

The most o0vious criticism a0out convenience sampling is sampling 0ias and that the sampleis not representative of the entire population. This may 0e the 0iggest disadvantage whenusing a convenience sample 0ecause it leads to more pro0lems and criticisms.

>ystematic 0ias stems from sampling 0ias. This refers to a constant difference 0etweenthe results from the sample and the theoretical results from the entire population. It is notrare that the results from a study that uses a convenience sample differ significantly with theresults from the entire population. 2 conseGuence of having systematic 0ias is o0taining

s%ewed results.2nother significant criticism a0out using a convenience sample is the limitationin generali9ation and inference ma%ing a0out the entire population. >ince the sample is notrepresentative of the population, the results of the study cannot spea% for the entire

population. This results to a low e(ternal validity of the study.

-.8 SAMPLE UNIT

>ample units are nothing 0ut the respondents covered during the process of collecting

data for the purpose of research. The sampling units consisted of people who own a

two wheeler.

pg. *


76/118

-.9 SAMPLE SI@E

The sample si9e is the total num0er count of the num0er of total respondents covered for the

research purposes.

Total sample si9e Z'++

ale L77

)emale- !$

-.; STATISTICAL DESIGN

The data was collected and complied in icrosoft 8(cel and is analy9ed using graphs

and pie charts.

-. PRIMARY DATA

3rimary data was collected through the administration of Guestionnaires to the sample

units and conducting a pilot study to ascertain the worth of the Guestionnaire.

uestionnaire Cesign

uestionnaire 2dministration

>coring 3rocedure

3ilot study

pg. *(


77/118

-.1 SECONDARY DATA

>econdary data would 0e collected from internet, industry 5ournals and maga9ines.

This information and the previous research papers will help in designing the

Guestionnaires and various attri0utes on which the companies are to 0e assessed. The

company dealers also provided valua0le information.

-.11 LIMITATIONS O5 STUDY

Dwing to the huge population si9e sampling universe spanning throughout the

country, it 0ecomes almost impossi0le to cover all the places in the given scope of

study.

The results thus o0tained are 5ust an overview of the areas and companies covered.

The data gathered and the results interpreted are what was done in a time frame of #

months and hence may not reveal the depth of the situation.

)or the ease of analysis, percentage of respondents using the products was considered

as the mar%et share of the particular product in that category.

This dissertation is confined on the 0asis of more secondary data collected only hence

it is not very much a relia0le data for the study.

pg. **


78/118

pg. *,


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80/118


81/118


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2mong the '++ people surveyed ,# / were students,!+/ were self-employed and

remaining '!/ 0elonged to wor%ing class li%e office goers, cler%s etc.

pg. ,2


83/118

3.7 AGE

1, - 221 J

22 - 2.( J

2. - 32 J

K 31 J

AGE

pg. ,3

AGE GROUP NUMBER O5

RESPONDENTS

PERCENTAGE O5

RESPONDENTS

1;#(( 1 1

((#(7 8 8

(7#- ( (

- 1 1


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Df the '++ respondents, #+/ 0elonged to !!-! age group,!+/ to ! -$+ group,'+/

to' -!! group and the remaining '+/ to more than $+ age group.

3.8 INCOME

MONTHLY

INCOMEFIN

S RS.

NUMBER O5

RESPONDENTS

PERCENTAGE O5

RESPONDENTS

( - -

( #- 77 77

- #3 1 1

3 7 7

$+/ of the total respondents earn less than s. !+,+++ per month, / of the respondents

earn s. !+,+++-$+,+++ per month,'+/ of the respondents earn s .$+,+++- +,+++ per

month and / of respondents earn more than s. +,+++ per month.

pg. ,4


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pg. ,


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DATA ANALYSIS

7.( OWNERSHIP O5 TWO WHEELER

YES ;

NO (

pg. ,(


87/118

ANALYSIS'

+/ of the respondents own a two wheeler and !+ / of them do not have one.

INTERPRETATION'

>ince ma5ority of my respondents are students from colleges, they own two wheelers

for daily commutation. 8ach one of them own different 0rands according to the taste

and preferences of the two wheelers availa0le in the mar%et. The most common

0rands are 6ero otocorp, 4a5a5, 6onda.T=> etc

.

7.- MOST :IEWED ADS

pg. ,*

HERO MOTOCORP 7

BA A 3

HMSI 1


88/118

.

1

1.

2

2.

3

3.

44.

.

)E/0 )0% )SI :;;

)E/0 )0%H .

)SIH 1

:;;H 4

MOST VIEWED ADS

ANALYSIS'

The viewership rate of ads among respondents is highest for 6ero otocorp with

+/,then comes 4a5a5 with +/ and 6onda with '+/.

INTERPRETATION'

6ero otocorp and 4a5a5 0eing the long term rivals compete each other to capture the

mar%et share. 6ence if one of them comes with an effective ad, the other will surely try

to 0etter it. In case of 6onda it


89/118

ANALYSIS'

In terms of influence of ads on the respondents, 4a5a5 comes with / , then 6ero

otocorp with $ / and 6onda '+/.

INTERPRETATION'

4a5a5 comes with ads that has more adrenalin rush specially targeting the youth and

ma5ority of them get inspired 0y the same. 6ero otocorp mainly depends on

cele0rities to influence the viewers. 6onda mainly focuses on the international

reputation of 0rand name they have 0uilt for themselves.

7.7 BEST RECALLED ADS

pg. ,9


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ANALYSIS'

In terms of recall , +/ of respondents were for 4a5a5 stunt ad, then $ / were for

6ero otocorp F2 IV 2 ad with 6rithi% roshan as 0rand am0assador.

INTERPRETATION'

4a5a5 came with stunt ads so that it may attract the youth,and they positions their 0i%e

mainly high performing, aggressive, relia0le. 6ero otocorp comes with the fan

0ase of its 0rand am0assador who very well connects with the features of the 0i%e

.=ery few recalled 6onda 0i%e ads as they were very stereotyped ads.

7.8 MOST COMMON SOURCE O5 ADS

T: 1;

pg. 9


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NEWSPAPER MAGA@INES 9

BILLBOARDS 7

INTERNET 9

ANALYSIS'

2mong the common source of ads, newspaper and maga9ines are mar%ed 0y 7+/ of

respondents, T= 0y ' / ,Internet 0y 7/ and 4ill0oards 0y /.

INTERPERTATION'

ewspaper and maga9ines comes with a lot of information related to 0i%es and it is a ma5or

source. @atest trend of internet penetration also 0rings in ads on 0i%es ,mainly through

social networ%ing sites, during online matches, events etc.

7.9 SOURCE O5 RELIABLE IN5ORMATION 5OR PURCHASE

DECISIONS

pg. 91


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5RIENDS 7

INTERNET 87

AUTOMOTI:E

MAGA@INES

1

COMPANY

DEALERS

(

ANALYSIS'

Dut of '++ respondents ,# / found internet as a good source of relia0le

information,then with company dealers !+/,automotive maga9ines '+/,friends /.

INTERPRETATION'

pg. 92


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The various we0 sites on the net provide valua0le information regarding the 0i%es.

With the availa0ility of net, people can 0rowse a0out any information a0out any

model 0efore going to any dealer. ompany dealers provide specific information and

in depth a0out a particular model. The rest is from friends and auto maga9ines.

7.; 5ACTORS WHICH MOTI:ATE PURCHASING DECISION.

DISCOUNT RATE -

EMI 37

RESALE :ALUE 1(

pg. 93


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ALLOWANCES ;

OTHERS -

ANALYSIS'

8 I is one of the ma5or motivating factor with / li%ing it,then comes discount

rate $+/,resale value '!/,allowances /,and others $/

INTERPRETATION'

8 I comes with a great motivational factor in purchasing a 0i%e. It is less ris%y ,and

afforda0le way of purchasing. Ciscount rate normally comes during festival seasons

where ma(imum sales happen. esale value has few effects on certain 0randed 0i%e

purchases.

7. PRE5ERRED PRICE RANGEF n +

- #3 7

3 #7 7

7 #8 1-

pg. 94


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8 #9 87

9 #; 1

; (

ANALYSIS'

The most preferred price range is #+-7+ with # / going for this option.'$/ for +-

#+, '+/for 7+ to +, / each for $+- + & +- +.and !/ for more than s. +,+++.

INTERPRETATION'

ost of the performance, value segment 0i%es falls in the #+-7+ price category, and

there is huge competition among the ma5or players. Then the preferred ones are high

performance 0i%es in the [ s. 7+,+++ and medium performance and high efficient

ones in the \ s.#+,+++ category .

pg. 9


96/118

7.1 RATING 5OR :ARIOUS 5ACTORSF1 LEAST PRE5ERRED AND9 MOST PRE5ERRED

pg. 9(


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ANALYSIS'

In this the most preferred factor is performance with 7 / going for it. Then comes

service and support and fuel efficiency with "+/ and 7+/ in terms of preferences.This is followed 0y price and 0rand value of the 0i%e.

INTERPRETATION'

3erformance is one factor which most of the people specially youth loo% upon in a

two wheeler. 2lso the companies have come upon with a segment of this category

pg. 9*


98/118

and have developed 0i%es 0ased on this. The customers also loo% into the after sales

and support the company offer when going for a two wheeler. 6ence the service

offered is of prime importance. The price is an important factor for medium segment

people that is 0elow s.#+,+++ as they try to 0alance price as well as efficiency oftwo-wheeler. 4rand value plays a ma5or role for loyal customers for eg. 2 person

0uys only 6D C2, 0ecause its one of the internationally trusted 0rands.

7.11 IS CROSSCHECKING DONE

YES (

pg. 9,


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The following factors play a ma5or role in increasing the demand for two wheelers in India.

3ersonal Income, demography and penetration level are %ey growth drivers in the two

wheeler industry.

P%r+on!& Inco/%

Cemand increases as the income increases, only to 0e su0stituted later 0y the demand for

four wheelers. Income has 0een steadily growing in India and is pro5ected to sta0ilise at a

growth rate of "-'! percent range 0y !+'!.

D%/o r!2$, !nd In+2 r!t on

The 0igger the young and wor%ing population, the greater is its need for commutation. The

IT and 43D revolution has influenced this movement. This is a favoura0le factor since

Indian wor%force is young.

P%n%tr!t on L%)%&

The lower the penetration levels in the mar%et, the 0etter the scope for future demand. 2s the

penetration of the rural mar%et is significantly low, it is going to 0e a significant long termgrowth driver.

Ot$%r 5!ctor+

Improvement in infrastructure increases competition, while simultaneously improving the

pu0lic transport. The average time period ta%en to replace an e(isting 0i%e with a newer

model has decreased from 7 years to years, resulting in replacement demand growth.

pg. 1 1


102/118

5INDINGS

pg. 1 2


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104/118

pg. 1 4


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HYPOTHESIS TESTING

N ll Hypothes!s H : There is a negative growth in the two wheeler industry

Alternat!"e Hypothes!s , H 1: There is no negative growth in the two wheeler industry.

PARAMETERS TO TEST HYPOTHESIS

>ince the hypothesis is stated in a0solute su05ective terms, there was a reGuirement to

convert this su05ectivity into o05ectivity to arrive at a stage for testing the hypothesis. )or

performing this tas%, 7 product categories were selected and the companies were tried on the

grounds of:

2vaila0ility of product

um0er of customer complaints

Cealers satisfaction level

2reas of operation and design of distri0ution channels

6old on the mar%et share

6ence the companies were tested on these 0asis and hence the results were compiled

according to the respective product categories itself.

RESULT O5 HYPOTHESIS TESTING

The overall research and analysis of the two wheeler companies across these 7 categories led

to the following result:

ull hypothesis is accepted for the product categories of '++cc and '! cc

segment as there is intense competition from fuel efficient small cars in India.

ull hypothesis does not hold true for product categories li%e

'$ cc,' +cc,' +cc,!!+cc.

pg. 1


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LEARNINGS

I had some ma5or learnings while wor%ing on this research pro5ect which can 0e summari9ed

as follows: Cream 6igh 0ecause that will help you to 2chieve 4ig.

>ystematic 3lanning is the essence for the pro5ect.

a%ing realistic time frame and following them is mandatory.

Cata ollection reGuires a lot of patience and follow up. It reGuires meticulous

research to select the right sample for research.

>econdary data collection is also an important tas% and one must 0e aware which

source is completely authentic and relia0le.

> 2 T goals must 0e set >-specific, -measura0le, 2-authentic, -realistic and T-

time specific .

pg. 1 9


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pg. 11


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BIBLIOGRAPHY

Fotler 3hilip,K ar%eting anagementK, ew Celhi, 3earson 8ducation Inc, !++#.

. . Fothari,Kresearch methodologyK, methods and techniGues, new dehli,new age

international 3 ltd '""+

ar%eting anagement, => amaswamy and aman Fumari, $ rd 8dition,achilian, !++!

@ondon 4usiness >chool-digital li0rary

2HTD 2A2VI 8>

6ero otocorp ,4a5a5, 6onda dealers

pg. 111


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WEBLIOGRAPHY

www. /eromotocor .com

www. #a$a$ auto.com

www.honda!wheelersindia.com

www. %!k!pe&!a.com

pg. 112


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pg. 113


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1(.1 JUESTIONNAIRE

Cear esodent, I am 6arshit >harma conducting a research on the comparativestudy of ]three< two wheeler companies 0ased on its product strategy and

advertising strategy. 3lease ta%e a few minutes of your time to fill the

Guestionnaire. Information provided 0y you will 0e %ept confidential.

38 >D 2@ I )D 2TID

pg. 114


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ame

Aender

2ge

Dccupation

Income

arital status

ualification

ontact num0er

'. Co you own a two wheelerR

*es o

If yes, then specify^^^^^^^^^^^^^^^^

!. Which of the three companies< ads you have viewed the mostR

' 68 D DTD D 3

! 6 >I

$ 42B2

$. 2mong these ads which ad has influenced you the mostR

' 68 D DTD D 3

! 6 >I

$ 42B2B

. ame any two 0i%e ads that you can recall the 0est.

pg. 11


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a.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

0.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

. Where do you come across these ads Guite often R

' T=

! ewspaper? aga9ines

$ 4ill0oards

Internet

#. Where do you gather the relia0le information for purchasing a two

wheeler Guite oftenR

' )riends

! Internet

$ 2utomotive maga9ines

ompany dealers

7. What are the factors which motivate you most while purchasing a two

wheelerR

' Ciscount rate

! 8 I

$ esale value

2llowances

pg. 11(


117/118

Dthers

. Which price range do you prefer mostR

' $+- + ! +- + $ +-#+ #+-7+ 7+- +# ["+

". ate the following factors in a 0i%e on the scale '-7, 0ased on your

preferenceR Where ' is least preferred and 7 most preferred. tic% mar%.

'+.Co you verify or crosschec% the information provided in the commercials

of two wheelers R

*es o

pg. 11*

>n. )actor ' ! $ # 7'. 3rice!. )uel efficiency$. 3erformance. >afety and comfort. Cesign and style#. 4rand value7. 2fter sales service and support


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ghanshyam honda ffff

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