“A COMPARATIVE STUDY OF CUSTOMER SATISFACTION TOWARDS BAJAJ AND HERO HONDA BIKES IN GURGAON (HARYANA)”

Gurgaon(Haryana) -122102

Submitted to: SUBMITTED BY:

Dr. SADIA SAMAR ALI NAND KUMAR R

Assoc Prof. (OM), Head R&P SUBHOJIT KARMAKAR

PGDM (Trimester- 3)

Session: - 2010-2012

CERTIFICATE

We hereby declare that our project on the Topic “A COMPARATIVE STUDY OF

CUSTOMER SATISFACTION TOWARDS BAJAJ AND HERO HONDA BIKES IN

GURGAON (HARYANA)” submitted to JK Business School, Gurgaon is a record

of an original work done by us under the guidance of project supervisor

ASSOCIATED PROFFESER DR. SADIA SAMAR ALI, and this project work has not

performed the basis for the award of any Degree or diploma/fellowship and similar

project if any.

This project was undertaken as a part of academic curriculum according to the

College rules and norms and it has not commercial interest and motive. It is our

original work. It is not submitted to any other organization for any other purpose.

Date: -

Place: - Gurgaon(Haryana)

NAND KUMAR R

SUBHOJIT KARMAKAR

(PGDM)

CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “A COMPARATIVE STUDY OF

CUSTOMER SATISFACTION TOWARDS BAJAJ AND HERO HONDA BIKES IN

GURGAON (HARYANA)” is a bonafide work of Nand Kumar R and

Subhojit Karmakar, carried out in partial fulfillment for the award of

degree of PGDM in JK BUSINESS SCHOOL under my guidance. This

project work is original and not submitted earlier for the award of any

degree / diploma or associate ship of any other University / Institution.

Signature:

Date:

ACKNOWLEDGEMENT

It gives us immense pleasure to present this project report on “A COMPARATIVE

STUDY OF CUSTOMER SATISFACTION TOWARDS BAJAJ AND HERO HONDA

BIKES IN GURGAON (HARYANA)” In partial fulfillment of Post-graduate course

PGDM.

The satisfaction and elation that accompany the successful completion of any task

would be incomplete without the mention of the people who made it a possibility. Our

deep sense of gratitude goes to our beloved Chairman Sh. Govind Hari Singhania,

Past President-Assocham who provided all facilities & necessary encouragement

during the course study.

We extended our gratitude and sincere thanks to our Director Dr. T. Duhan, MA

(Eco), CAIIB, DMM, PGDQM, LL.B, PhD. (Finance) for his support.

We dedicated our whole hearted thanks to Dr. Richa Dahiya, MBA, (PhD) Head of

Department and my guide Dr. Sadia Samar Ali , M Sc, (PhD.) for her commendable

inspiring guidance, valuable advice, encouragement & motivation given to succeed in

our endeavours. We extended our sincere thanks to all our staff members &

librarians.

Lastly we would like to thank our parents, friends and well wishers who encouraged

us to do this research work and all those who contributed directly or indirectly in

completing this project to whom we are obligated to.

Nand Kumar R

Subhojit Karmakar

(PGDM)

TABLE OF CONTENT

Sl No. Particulars Page No.Chapter 1 Objectives of the study 1Chapter 2 Introduction

I. History of BajajII. History of Hero Honda

2-5

Chapter 3 Literature Review 6Chapter 4 Research Methodology

I. Data SourceII. Research ApproachIII. Sampling Unit

7

Chapter 5 Analysis and Interpretation 8-13Chapter 6 Findings 14Chapter 7 Conclusion & Managerial Implications 15Chapter 8 Bibliography 15Chapter 9 Appendix-Questionnaire 16-18

CHAPTER 1

Objectives of the study

To analyze the factors of consumer preference for two wheelers

To know the important factors of consumer preference for the two brands

To analyze the customer satisfaction

To analyze the most important factors that influence the buying behaviour of customers for the two wheelers

To study the behavioural of consumers in motor bikes

To know which manufacturer is the best service provider

CHAPTER 2

2.1 History of Bajaj

Type Public

Industry Automobile

Founded 1945 as M/s Bachraj Trading Ltd.

Headquarters Pune, Maharashtra, India

Key people Minku Jiya (Chairman), Rajiv Bajaj (Managing Director)

ProductsBikes, scooter, Autorickshaw

Revenue Rs. 12,043.48 crore (US$2.67 billion)

Net income Rs. 1,700.11 crore (US$377.42 million)

Employees 10,250 (2006-07)

Parent Bajaj Group

Website bajajauto.com

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading

Corporation Private Limited. It started off by selling imported two- and three-wheelers

in India. In 1959, it obtained license from the Government of India to manufacture

two- and three-wheelers and it went public in 1960. In 1970, it rolled out its

100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a

single financial year. In 1985, it started producing at Waluj near Aurangabad. In

1986, it managed to produce and sell 500,000 vehicles in a single financial year. In

1995, it rolled out its ten millionth vehicle and produced and sold one million vehicles

in a year.

According to the authors of ‘Globality’: “Competing with Everyone from Everywhere

for Everything”, Bajaj has grown operations in 50 countries by creating a line of

value-for-money bikes targeted to the different preferences of entry-level buyers.

Bajaj Auto is a major Indian vehicle manufacturer. It is based in Pune, Maharashtra,

with plants in Chakan ( Pune) with plants in Chakan (Pune), Waluj

(near Aurangabad) and Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune)

now houses the R&D centre ahead. Bajaj Auto makes and

exports automobiles scooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1,946.

Over the last decade, the company has successfully changed its image from a

scooter manufacturer to a two wheeler manufacturer. Its product range

encompasses scooterettes, scooters and motorcycles. Its real growth in numbers

has come in the last four years after successful introduction of a few models in the

motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Timeline of new releases:

1960-1970 - Vespa 150 - Under the licence of Piaggio of Italy

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Bajaj Priya

1977 - Rear engine Autorickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100, Kawasaki Bajaj KB125,

1990 - Bajaj Sunny

1991 - Kawasaki Bajaj 4S Champion

1993 - Bajaj Stride

1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw

1998 - Kawasaki Bajaj Caliber, Bajaj Legend, India's first four-stroke

scooter, Bajaj Spirit

2000 - Bajaj Saffire

2001 - Eliminator, Bajaj Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar Bajaj Endura FX

2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj

Discover DTS-i

2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel

Injection) , XCD 125 DTS-Si

2008 - Bajaj Discover 135 DTS-i - sport (Upgrade of existing 135cc model)

2009 - Bajaj Pulsar 135(December 9) (January) Bajaj XCD 135 cc , Bajaj Pulsar

150 DTS-i UG IV, Bajaj Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i , Bajaj

Discover 100 DTS-Si.

Company Perspectives:

Our Philosophy: We approach our responsibilities with ambition and resourcefulness. We organise 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. Disclosure of all relevant financial and non-financial information in an easily understood manner. Supervision of the Company's activities by a professionally competent and independent board of directors. 

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.

2.2 History of Hero Honda

Type Public company

Industry Automotive

Founded January 19, 1984 in Gurgaon,Haryana, India

Headquarters New Delhi, India

Key people Brijmohan Lal Munjal (Chairman and Founder)

Toshiaki Nakagawa (Joint Managing Director)

Pawan Munjal (Managing Director & CEO)

Products Motorcycles, Scooters

Revenue US$ 2.8 billion

Website www.Herohonda.com

“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 own 26% stake in the

Company. In 2010, it was reported that Honda planned to sell its stake in the venture

to the Munjal family.

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' that emphasised the motorcycle's fuel efficiency

helped the company grow at a double-digit pace since inception. The technology in

the bikes of Hero Honda for almost 26 years (1984–2010) has come from the

Japanese counterpart Honda

Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in

Haryana and at Haridwar in Uttarakhand. These plants together are capable of

churning out 3 million bikes per year. Hero Honda has a large sales and service

network with over 3,000 dealerships and service points across India. Hero Honda

has a customer loyalty program since 2000,called the Hero Honda Passport

Program.

The Hero Honda story began with a simple vision – the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s

commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero Honda believes that

the fastest way to turn that dream into a reality is by remaining focused on that

vision.

The company's growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero Honda's

extensive sales and service network now spans close to 4500 customer touch

points. These comprise a mix of authorized dealerships, Service & Spare Parts

outlets, and dealer-appointed outlets across the country.

The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation.Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010.  Total unit sales of 46,00,130 two-wheelers, growth of 23.6 %.Total net operating income of Rs. 15860.51 Crores, growth of  28.1 percent Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs.2 EBIDTA margin for the year 17.4 percent EPS of Rs. 111.77, growth of 74.1  percent.

Herohonda Products :

Hero Honda CD-dawn Hero Honda CD-Deluxe Hero Honda Splendor Plus Hero Honda Splendor NXG Hero Honda Passion Plus Hero Honda Super Splendor Hero Honda Glamour Hero Honda Achiever Hero Honda CBZ Xtreme Hero Honda Hunk Hero Honda Karizma Hero Honda Pleasure

CHAPTER 3

3. Literature reviewOnce the problem is formulated, the researcher has to undertake an extensive literature survey related to problem. The literature survey undertaken here includes books and different websites from the internet.The research project was to know theCustomer preferences and customer satisfactionwith regard to specific brands of bikes(HONDA and BAJAJ) under 150cc category between the age group of 18-25 College going student on the basisof Price, Fuel efficiency, Brand, Style and comfort name.• Schiffman. G. Leon and kanuk lazare Leslie1 - Study of the customer behaviour

is the study of how individuals make decisions to spend their available resources

(Time, Money and Efforts) on consumption related items. It includes the study what

they buy, whey they buy it, when they buy it, where they buy it , how often they buy it

and how often they use it. The primary purpose for the study consumer behaviour as

apart of marketing curriculum is to understand how and how customers make their

purchase decisions. There insights enable marketers to design more effective

marketing strategies.

• Gupta.C .B and Dr. Nair. N.Rajan2 - A business is based on understanding the

customer and providing the kind of products that the customer wants.

• Mamoria C.B. and Mamoria Satish3 - Consumer behaviour is the process

where by individuals decide what, when, where, how and from whom to purchase

goods and services. Buying behaviour may be viewed as an orderly process hereby

individual interacts with his environment for the purpose of making market decision

on products and services.

• Nair Suja. R.4 - The success of the firm will be determined by how effective it

has been in meeting the diverse customer needs and wants by treating each

customer as unique and offering products and services to suit his/her needs.

• Bennett Peter.D. And Kassarjian Haroldh5 - A great deal of research activity

in marketing is design to shed light on the customer decision process.

CHAPTER 4

4. Research methodology

It is well known fact that the most important step in marketing research process is to define the problem. Choose for investigation because a problem well defined is half solved. That was the reason that at most care was taken while defining various parameters of the problem. After going through the demand of the problem, objectives were selected and the set on the base of these objectives a questionnaire was designed, major emphasis of which was gathering new ideas or insight so as to determine and bind out solution to the problems. Descriptive Research Design is the Research Design which is used by us in this project report.

4.1 Data source

The Research includes gathering of both Primary as well as Secondary data. Primary data is the data which is collected for the first time. They are also known as first hand data, and thus happen to be original in character. Primary Data was crucial to know various customers and past consumer views about bikes and to analyze which is the most preferred and satisfying brand among the two brands.

Secondary data are the data which are already available or collected by some one and which has been already passed through statistical processes. Secondary data has been taken from internet, newspaper, magazines and companies web sites.

4.2 Research approach

The research approach was used survey method which is a widely used method for data collection and best suited for descriptive type of research survey includes research instrument like questionnaire which can be structured and unstructured. Target population is well identified and various methods like personal interviews and telephone interviews are employed.

4.3 Sampling unit

It gives the target population that will be sampled. This research was carried in Gurgaon (Haryana).

100 respondents were taken into consideration for the Data compilation and Analysis After the collection of data, tabulation is done and findings of the project is presented followed by analysis and interpretation to reach certain conclusions. The Sampling Technique is Non-Probabilistically and Convenience Sampling.

CHAPTER 5

5. Analysis and Interpretation

1. Do you own a bike?

100YesNo

Interpretation: All the 100 respondents who were taken into consideration were having a bike

2. Which Bike do you have?

51

45

4

hero hondabajajother

Interpretation: Out of the 100 respondents 51 were having Hero Honda while 45 were having Bajaj and 4 of them were having others

3. Which Model do you have?

25

20

620

15

10 4

splendorpassionkarizmapulsardiscoverct100others

Interpretation: Out of 100 respondents most of the respondents prefer splendor and passion as compared to karizma of Hero Honda while others go for Bajaj pulsar and discover and the rest prefer others

4. Which price range do you prefer most?

10

35

30

157

3

30000-4000040000-5000050000-6000060000-7000070000-80000>90000

Interpretation: around 35% of the respondents prefer a bike ranging from 40000-

50000 where as 3% of them go for a bike ranging more than 90000

5. How much CC bike do you prefer for yourself

35

30

25

10

100 cc150 cc200 cc> 200 cc

Interpretation: among the respondents 35% of them go for 100 cc bike where as

10% of them prefer a bike which is of more than 200 cc

6. From where do you come to know about your bike

23

16

21

40

newspapersmagazinesTVFriends/Relatives

Interpretation: 40% of the respondents came to know about their bike from their

friends and representatives where as the others come to know about their bike from

newspapers, magazines and TV

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

11

24

21

28

16

Sales

Discount rateEMIResale valueAllowancesOthers

Interpretation: Among the various respondents 11% of them got motivated by the

discount rates while 28% of them by allowances and the rest by EMI resale value

and others

8. Why do you prefer this brand over other brand

8

45

30

15

30

Sales

featurespricesales serviceresale valueall the above

Interpretation: Most of the respondents prefer the brand due to its price and sales

service while the others prefer due to the various other factors

9. Will you prefer any other bike if its price is reduced

38

62

yesno

Interpretation: Out of 100 respondents 62% of them will not prefer any other bike

even if the price gets reduced while the rest will change their bike

10. For how long do you own a Bike?

722

31

40

Sales

0-1 year1-2 years2-3 years>3 years

Interpretation: 40% of the respondents use their bike for more than 3 years while the others use it for less than 3 years

11. Are you satisfied with the performance of the bike that you are currently having

78

12 10

Sales

yesnocan't say

Interpretation : Out of 100 respondents 78% of them are satisfied with the performance of their bike while rest of them are partially satisfied or not satisfied.

CHAPTER 6

6. Findings

During this research project we came in to contact with many customers who are having bikes. It has been found that in Hero Honda mostly the customers are having splendor while the ratio of the customers using Passion, Karizma and other bikes are comparatively low. In Bajaj the customers are giving more preference to Discover and Pulsar models. The maximum numbers of customers that are using these bikes fall in the income group of 200000-300000. It has been observed that the customers are using their bikes mostly for official and personal purpose. It is observed that the awareness of Hero Honda bikes mostly comes from friends, relatives and advertisements while of Bajaj the awareness comes from newspapers and televisions. Out of the sample size of 100 customers, 65 customers agree with the fact that advertisements play a very significant role in influencing their behavior to choose the bike. On the other hand 25 customers do not agree to this fact. While remaining 10 customers are not sure about it.

When the customers are asked that are they satisfied with the performance of their bikes then most of them gave a positive reply to the fact. Out of the sample size of 100 customers, 60 customers say that they are satisfied with the performance of their bikes while 20 customers are not satisfied with the performance of the bikes that they are having. While the remaining 20 customers are unable to say anything. It is observed that most of the customers are having full knowledge of the bike before purchasing.

It has been observed that in Hero Honda the mileage of the bikes and the value that it adds to the status symbol of the customers influences the decision making criteria of most of the customers. In Bajaj bikes customers gets more influenced by the price and quality of the bike and also they think that it adds value to their prestige.

It is observed that in rating of different features of different bikes people give maximum rating to the price and brand image of the bike. At the second level they give their rating to the look and design. At the third level they rate mileage. And at the fourth level they give points to features and qualiy. At last they rate maintenance.

It is observed that the customers of Hero Honda bikes are not ready to change their bikes even if a new bike comes in with good features. While majority of the customers of Bajaj are ready to change their bikes if new bike provides some good features to them at a low price.

CHAPTER 7

7.1 Conclusion

1. Most of the bikes like Flame, Apache, Pulsar, CBZ & Karizma are purchased by youngsters ranging from 18 to 30 years because they prefer stylish looks and designs and rest of the models of Hero Honda and Bajaj are purchased by daily users who need more mileage giving bikes than looks.

2. Hero Honda is considered to be most fuel-efficient bike on Indian roads.

3. Service & Spare parts are available in all over India for both the brands.

4. While buying a motorcycle, economy is the main consideration in form of

maintenance cost, fuel efficiency etc..

5. Majority of the respondent uses their motorcycle for more than 3 years.

7.2 Managerial Implications

1. Bajaj should introduce some more models having more engine power.

2. Hero Honda should think about fuel efficiency in case of upper segment bikes.

3. More service centers for both the brands should be opened .

4. Maintenance cost and the availability of the spare parts should also be given due importance.

5. They should also introduce some good finance/discount schemes for students as most of the customers for both the brands are the youngesters.

6. The price should be also economic.

CHAPTER 8

8. Bibliography

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

CHAPTER 9

9. Appendix- Questionnaire

AGE :- 15 – 20 Years 20 - 25 Years

25 – 30 Years Above 30 Years

OCCUPATION :- Businessman Employee

Student Other

GENDER Male Female

1. Do you own a bike?

Yes

No

2. Which Bike do you have?

Hero Honda Bajaj Any Other

3. Which Model do you have?

Hero Honda Bajaj

Splendor CT 100

Passion Discover

Karizma Pulsar

Other Other

4. Which price range do you prefer most?

1. 30000-40000

2. 40000-50000

3. 50000-60000

4. 60000-70000

5. 70000-80000

6. More than 90000

5. How much CC bike do you prefer for yourself

1. 100 CC

2. 150 CC

3. 200 CC

4. More than 200 CC

6. From where do you come to know about your bike?

1. Newspapers

2. Magazines

3. TV

4. Internet

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

1. Discount rate

2. EMI

3. Resale value

4. Allowances

5. Others

8. Rate the following factors in a bike on the scale 1-7, based on your

preference? (Where 1 is least preferred and 7most preferred.)Tick mark.

SN. Factor 1 2 3 4 5 6 7

1 Price

2 Fuel efficiency

3 Performance

4 Safety & comfort

5 Design & style

6 Brand value

7 After sales service and support

9. Why do you prefer this brand over other brand

1. Features

2. Price

3. Sales Service

4. Resale Value

5. All the above

10. Will you prefer any other bike if its price is reduced

Yes

No

11. For how long do you own a Bike?

1. 0-1 year

2. 1-2 year

3. 2-3 year

4. above 3 years

12. Are you satisfied with the performance of the bike that you are currently having?

Yes

No

Can’t say