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NIMS INSTITUTE OF MANAGEMENT &COMPUTER SCIENCE

AN ASSIGNMENT ON RESEARCH METHODOLOGY

Title:- comparative study of Hero Honda & Bajaj

SUBMITTED BY: -Tripti Pandey (M.B.A 2nd sem) Session-2011-2012

SUBMITTED TO: - Dr.Sudhinder Singh Chauhan

(Assitance professor)

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S.NO PARTICULATES PAGE no.

1 Abstract 3

2 Introduction 4-10

3 Objective 11

4 Research Methodology 12-13

5 Limitations 14

6 Analysis &data interpretation 15-21

7 Findings 22

8 Conclusion 23

9 Recommendation 24

10 Bibliography 25

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ABSTRACT:-

In modern scenario the automobile industry has been

advanced in technology and their research &development

area. If an automobile company wants to know about its

market value and brand value it has to be done survey to

know the mind of the customer and its future need.

Here we have done a

comparative study of two bigger competitors, which are

Hero Honda and Bajaj, n the automobile industry.

With the help of this we will be able to

know the market value of these two companies and

customer need for the future.

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INTRODUTION:-

PROFILE OF BAJAJ AUTO

Bajaj Auto Limited is an Indian motorized vehicle-producing company.

Bajaj Auto is a part of Bajaj Group Its founded by Jamnalal

Bajaj at Rajasthan in the 1930s. It is based in Pune, Maharashtra with

plants in Chakan (Pune), Waluj (near Aurangabad)

andPantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now

houses the R&D centre A head. Bajaj Auto makers and

exports automobiles, scooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at

1,946. It features at 1639 in Forbes 2011 list.

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.

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 vehicles and produced and sold

one million vehicles in a year.

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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 Group Companies

Bajaj Auto - Manufacturers of Scooters, Motorcycles and Three-wheeler vehicles and spare parts.

Bajaj Auto Finance Ltd - Deals in financial services including hire purchase financing & leasing.

Bajaj Finserv Ltd - Financial Services

Bajaj Holdings & Investment Ltd - Investment company focusing on new business opportunities

Mukand Ltd - Manufacturers of stainless, alloy and special steels including carbon and alloy steels.

Bajaj Electricals Ltd - Manufacturers of electric fans, high masts, lattice closed towers and poles.

Bajaj Hindusthan Ltd - Manufacturers of white

crystal sugar and industrial alcohol.

Bajaj Ventures Ltd - Involved in manufacturing and trading of power tools and manufacturing of houseware and parts.

Bajaj Corp Ltd - Manufacturing hair oils and tooth powder.

Maharashtra Scooters Ltd - Manufactures of scooters.

Bajaj Allianz General Insurance Company Ltd - General insurance business

Bajaj Allianz Life Insurance Co. Ltd

Bajaj Financial Solutions Ltd - Distribution of financial products and services

Bajaj Allianz Financial Distributors Ltd - Distribution of financial products

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Bajaj Auto Holdings Ltd - Investment Company

PT Bajaj Auto Indonesia (PTBAI) - Bajaj auto venture in Indonesia

Bajaj Auto International Holdings BV - Bajaj auto venture in Netherlands

Hind Lamps Ltd - Manufactures GLS, fluorescent, miniature lamps and major components such as glass shells, miniature and aluminum caps, lead glass

Mukand Engineers Ltd - Construction, fabrication and erection of industrial and infrastructural projects and InfoTech business

Mukand International Ltd - Trading in metals, steel and Ferro alloys

Bajaj Sevashram Pvt Ltd - Investment activities

Jamnalal Sons Pvt Ltd - Investment and finance company

Rahul Securities Pvt Ltd

Shekhar Holdings Pvt Ltd

Madhur Securities Pvt Ltd

Niraj Holdings Pvt Ltd

Shishir Holdings Pvt Ltd

Kamalnayan Investments & Trading Pvt Ltd

Sanraj Nayan Investments Pvt Ltd

Hercules Hoists Ltd - Manufactures 'INDEF' brand materials handling equipment such as triple spur gear chain pulley blocks, chain electric hoists and wire rope

Hind Musafir Agency Pvt Ltd - Travel agency

Bajaj International Pvt Ltd - Export electric fans, GLS lamps, fluorescent tubes, light fittings, etc.

Bachhraj Factories Pvt Ltd - Ginning and pressing of cotton bales

Baroda Industries Pvt Ltd - Investment company

Jeevan Ltd - Investment company

Bachhraj & Co Pvt Ltd - Investment company

The Hindustan Housing Co Ltd - Services company

Hospet Steels Ltd - Steel plant consisting of Iron Making Division, Steel Making Division and Rolling Mill Division

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PROFILE OF HERO MOTO COP:-

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

emphasized 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 Moto Corp 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 Moto

Corp 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 company has a stated aim of achieving revenues of $10 billion and

volumes of 10 million two-wheelers by 2016-17. This in conjunction

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

following the disengagement from Honda, Hero MotoCorp hopes to

achieve 10 per cent of their revenues from international markets, and

they expected to launch sales in Nigeria by end-2011 or early-2012. In

addition, to cope with the new demand over the coming half decade, the

company was going to build their fourth factory in South India and their

fifth factory in Western India. There is no confirmation where the

factories would be built.

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History

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.

1956 -- Formation of Hero

Cycles in Ludhiana(majestic

auto limited)

1975 -- Hero Cycles becomes

largest bicycle manufacturer

in India.

1983 -- Joint Collaboration

Agreement with Honda Motor

Co. Ltd. Japan signed

Shareholders Agreement

signed

1984 -- Hero Honda Motors

Ltd. incorporated

1985 -- Hero Honda

motorcycle CD 100 launched.

1989 -- Hero Honda

motorcycle Sleek launched.

1991 -- Hero Honda

motorcycle CD 100 SS

launched.

1994 -- Hero Honda

motorcycle

Splendor launched.

1997 -- Hero Honda

motorcycle Street launched.

1999 -- Hero Honda

motorcycle CBZ launched.

2001 -- Hero Honda

motorcycle Passion and Hero

Honda Joy launched.

2002 -- Hero Honda

motorcycle Dawn and Hero

Honda motorcycle Ambition

launched.

2003 -- Hero Honda

motorcycle CD Dawn, Hero

Honda motorcycle Splendor,

Hero Honda motorcycle

Passion Plus and Hero Honda

motorcycle Karizma launched.

2004 -- Hero Honda

motorcycle Ambition 135 and

Hero Honda motorcycle

CBZ* launched.

2005 -- Hero Honda

motorcycle Super Splendor,

Hero Honda motorcycle CD

Deluxe, Hero Honda

motorcycle Glamour, Hero

Honda motorcycle Achiever

and Hero Honda Scooter

Pleasure.

2007 -- New Models of Hero

Honda motorcycle Splendor

NXG, New Models of Hero

Honda motorcycle CD

Deluxe, New Models of Hero

Honda motorcycle Passion

Plus and Hero Honda

motorcycle Hunk launched.

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2008 -- New Models of Hero

Honda motorcycles

Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and

Hero Honda motorcycle

Passion Pro launched.

2009 -- New Models

of Karizma: Karizma - ZMR

and limited edition of Hero

Honda motorcycle

Hunk launched

2010 -- New Models of Hero

Honda motorcycle Splendor

Pro and New Hero Honda

motorcycle

Hunk and New Hero Honda

Motorcycle Super Splendor

launched.

2011 -- New Models of Hero

Honda motorcycles Glamour,

Glamour FI, CBZ Xtreme,

and Karizma launched.

New licensing arrangement

signed between Hero and

Honda.

August-- Hero and Honda part

company, thus forming Hero

MotoCorp and Honda moving

out of the Hero Honda joint

venture. November-- Hero

launched its first ever Off

Road Bike Named Hero

"Impulse".

Termination of Honda joint venture

In December 2010, the Board of Directors of the Hero Honda Group

have decided to terminate the joint venture between Hero Group of India

and Honda of Japan in a phased manner. The Hero Group would buy out

the 26% stake of the Honda in JV Hero Honda. Under the joint venture

Hero Group could not export to international markets (except Sri Lanka)

and the termination would mean that Hero Group can now export. Since

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

for the technology in their bikes. So there are concerns that the Hero

Group might not be able to sustain the performance of the Joint Venture

alone.

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Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the

London firm WolffOlins The logo was revealed on 9 August 2011 in

London, the day before the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West

Asia. Hero is free to use any vendors for its components instead of just

Honda-approved vendors.

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OBJECTIVES:- 1. To know the market share of Bajaj & Hero Honda. 2. To know the perception of customers regarding bikes. 3. To determine the customers satisfaction regarding bikes. 4. To determine the factors influencing the choice of customers regarding Bikes.

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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 giving through brain

storming session, 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.

DATA SOURCE

Research included gathering both primary and secondary data.

Primary data is the first hand data, which are selected a fresh

and thus happen to be original in character.

Primary Data was crucial to know various customers and past

consumer views about bikes and to calculate the market share of

this brand in regards to other brands.

Secondary data are those which have been collected by someone

else and which already have been passed through statistical

process. Secondary data has been taken from internet,

newspaper, magazines and companies web sites.

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.

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SAMPLING UNIT

It gives the target population that will be sampled. This research

was carried in Jaipur. These were 20 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings

of the project were presented followed by analysis and

interpretation to reach certain conclusions.

SCOPE

My project was based on the Comparative Study of Bajaj V/S

Hero Honda and data was taken in the Jaipur only.

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LIMITATIONS

1).Research work was carried out in the jaipur, Therefoer it is

not applicable to the outside of jaipur.

2).The sample was collected by using convenient- techniques.

As such the result may not give exact representation of the

populations.

3). the shortage of time is incomprehensiveness of the problem

4).The views of the people may be biased.

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ANALYSIS& DATA INTER PRETATION

Q1) which bike do you have?

(a). Bajaj (b). Hero Honda (c). Any other Bike

Ans. Bajaj- 5 Hero Honda-14 Any other-1

Q.2) Which Model do you Have? Ans.

Hero Honda Bajaj Splender 2 CT 100 3 Passion 5 Discover 4 Karizma 1 Pulsar 4

Any other2

Sales

BAJA

HERO HONDA

OTHER

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NAME OF BIKE

NAME OF BIKE Q3) in which family Income level do you Fall? Ans

10000-2000 6 20000-30000 7 30000-40000 4 Above 40000 3

0

1

2

3

4

5

6

PASSION SPLENDER KARIZMA ANY OTHER

Series 1

Series 1

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

PULSER DISCOVER CT100 OTHER

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Q4) for how long do you own a bike?

0-1 year 4 1-2 year 6 2-3 year 7

Above 3 year 3

0

2

4

6

8

10000-20000 20000-30000 300000-40000 ABOVE 400000

Series 3

Series 3

0

2

4

6

8

0-1 year 1-2 year 2-3 year Above 3 year

Series 2

Series 2

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Q5) for what purpose do you use your Motor Bike? (1). Office (2).Personal use (3) Joy use (4) Other Ans.

Hero Honda Bajaj Office Purpose 3 2 Personal purpose 5 4 Joy Purpose 1 0 Other 0 0

Q6) How do you come to know about this Motor Bike? Hero Honda Bajaj Newspaper 4 2 Television 5 3 30Magazine 4 2 Friends &

0

1

2

3

4

5

6

Offiec use Personal use Joy use Other

hero honda

Baja

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Q7) Does Advertisement Influence your decision in choosing a Motor Bike?

1)Yes 87% 2) No 5% 3)Can’t say 8%

Q8) Do you have full knowledge about Bikes before buying? Hero Honda Bajaj Yes 7 5 No 5 3 32

0

1

2

3

4

5

6

HERO HONDA BAJAJ

NEWS PARER

TELEVISION

FRIENDS

Sales

YES

NO

CAN'T SAY

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Q9) Which Factor below Influence your decision? Hero Honda Bajaj Price 72% 78% Mileage 78% 64% Quality 65% 48%

0

1

2

3

4

5

6

7

8

HERO HONDA BAJAJ

YES

NO

Column1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

HEROHONDA

BAJAJ

PRICE

MILEAGE

QUALITY

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Q10) how would you rate the following factors of Bikes with respect to different company? Hero Honda Bajaj Mileage 74% 72% Price 68% 65% Pick up 70% 80%

Q11) If new Bike with good features comes in, then would you like to change your bike? Hero Honda Bajaj Yes 2 5 No 1 3 Can’t say 6 3

60%

65%

70%

75%

HERO HONDA BAJAJ

MILEAGE

PRICE

PICKUP

0

1

2

3

4

5

6

7

HERO HONDA BAJAJ

YEA

NO

CAN'T SAY

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FINIDINGS:- 1. Most of the Pulsar, CBZ & Karizma are purchased by young generation18 to 30 because they prefer stylish looks and rest of the models of Hero 2 Honda is purchased more by daily users who needs more average of bikes than looks. 3 Hero Honda is considered to be most fuel-efficient bike on Indian roads. 4 Service & Spare parts are available throughout India in local markets also. 5 While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. 6. Majority of the respondent had bought their motorcycle more than2-3 years.

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CONCLUSION:-

With the help of following finding we concluded that:- 1). Today the customer is rational and purchase only most efficient product 2). Customer wants to buy most economical product 3).automobile companies are trying to use new technology which can be sold at a reasonable price. 4). Companies do not want to lose any segment of market.

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RECOMMENDATIONS:-

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 should be opened.

4. Maintenance cost and the availability of the spare parts should

also be given due importance.

5. They also introduce some good finance/discount schemes for

students.

6. The price should be economic.

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BIBLIOGRAPHY:-

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.

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