overview of the automobile industry
TRANSCRIPT
A PROJECT REPORT ON
AUTOMOBILE INDUSTRY
IN INDIA
(SPECIAL FOCUS ON
BAJAJ PULSAR BIKES)
SUBMITTED TO :
Prof. Ms.Shivani Bali
(Faculty of QMM )
BY GROUP 1
NIHAREIKA SINHA
PADMADEVI
GAURANG SAHLOT
ISHA VASHIST
SIRAJ SIDDIQUI
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Student Undertaking
We have completed the Study Project titled “Bajaj Bikes-An analysis”
under the guidance of Prof. Ms. Shivani Bali. This is an original piece of
work & we have neither copied and nor submitted it earlier elsewhere.
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TABLE OF CONTENTS
.
1. Acknowledgement……………………………………………
2. Executive Summary…………………………………………..
3. Introduction to the problem…………………………………..
4. Rationale and Scope of Study………………………………..
5. Review of Literature…………………………………………
6. Objective of Study…………………………………………...
7. Research Methodology………………………………………
8. Company Profile……………………………………………..
9. SWOT Analysis ……………………………………………..
10. Data Analysis……………………………………………….
11. Refrences……………………………………………………
12. Questionnaire………………………………………………..
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Acknowledgement
We are extremely grateful to Ms. Shivani Bali for providing us the honor
of carrying out the project, which helped us to put our learning’s into
experience. Without her guidance we would not have been able to proceed
with our project in the right direction.
We would like to express our sincere regards to the staff of LBSIM, New
Delhi, whose help and guidance enables us to know what exactly
consumer’s preference towards television is all about.
We would also like to thank our family friends and relatives who have
helped us and supported us in all possible ways.
A Project report needs co-operation, guidance and experience of many
more other than the persons whose name appears on the cover, we would
like to thank each and everyone who have helped us in our endeavour.
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EXECUTIVE SUMMARY
(Subject to change with the progress of the project)
The project deals with the Analysis of Behavior of people regarding bikes and its different features. The study includes a survey of various mindsets affecting the liking and disliking of bikes. It is being done keeping in mind how these factors will affect it. This will also help the public understand what is affecting their sale and purchase.
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Introduction to the Problem
Spread
Talking about India, the bike market is confined mainly to male gender. So market depends on the perception of
males regarding different bikes.
Preference
Though bikes all over the world are used for fun or leisure travel in India its uses are diverse, ranging from
business (pizza hut, dominos, vegetable vendors), as a family vehicle, load carrying by small time vendors and
normal expected use by youngsters. Depending upon the intended use factors like sturdity, mileage, looks etc.
dominate and guide their choices.
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Rationale and Scope of Study
To gauge the marketing behavior and analyze the data collected by using
mathematical and statistical tools to draw conclusions regarding preferences
of the customers and the sales figures in the bike segment.
Due to geographical and time constraints the scope of the study has been
limited to the Delhi and NCR region and also to Bajaj bikes as the overall 2-
wheeler segment is very large in India.
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REVIEW OF LITERATURE
Article 1 – Marketing research by Jayesh Shah & Saurabh Kishore for academic purposes
OBJECTIVE : To Know The Popularity Of Brands Among Various Segments
Findings : Overall Findings Show That Hero Honda Is The Market Leader In All The Segments Followed By Bajaj And Tvs. Few Other Popular Brands Include Royal Enfield Among Students And Yamaha Among Service And Business Class People.
METHODOLOGY: based on Primary data analysis
Suggestions: Indian market is still price sensitive and goes for better mileage when compared to looks. Also brand awareness is a major factor affecting decision hence important to follow correct campaign trail before launch of a new bike.
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Objective of the research
To find out the consumer preference level and taste across Delhi and NCR region of different segments.
Gauge customer taste and preference for various brands of bikes on available parameters like mileage, style, comfort etc.
What factors guide consumer buying behavior for bikes?
Which is the leading brand in the market and the relative position of the companies from consumer’s point of view?
Identifying possible areas of improvement.
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Product snapshot
HERO HONDA BAJAJ
TVS YAMAHA
Overview of the Two Wheeler Industry – The Bike Segment
The Indian two-wheeler industry has come long way since its humble beginning in 1948 when Bajaj Auto
started importing and selling Vespa Scooters in India. Since then, the customer preferences have changed in
favor of motorcycles and gearless scooterettes that score higher on technology, fuel economy and aesthetic
appeal, at the expense of metal-bodied geared scooters and mopeds. These changes in customer preferences
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have had an impact on fortunes of the players. The erstwhile leaders have either perished or have significantly
lost market share, whereas new leaders have emerged.
Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing
companies have all fuelled the growth of two-wheeler sales in the country. Besides, mounting traffic chaos and
limited parking space has also increased the demand for two-wheelers from households that can afford or
actually do own a car. India the second largest market for two wheelers in the world only after China.
Furthermore, with increasing women working population, changing social philosophy and broad-mindedness,
the penetration of two-wheelers is expected to further increase significantly.
The motorcycle has now become one most popular mode of transportation among the Indian middle class
families because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the
people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the
Indian two wheelers.
Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike
manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj India.
The motorcycle industry in India has witnessed a tremendous change in the 90’s with the invention of 4 stroke
engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to
make the motorcycle ride more comfortable, safe and user friendly and economical.
In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India:
Easy accessibility to cheap consumer loans
The increase in the average income of the family.
The reduction in duties and taxes.
Convenience with regards to commuting as compared to the public transport system.
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Continuous innovations in technology making the bikes economic and fuel-efficient.
The first choice among youths and teenagers.
Key players in the Bike segment :
HERO HONDA MOTORS LTD.
BAJAJ AUTO LTD
TVS MOTOR COMPANY LTD.
KINETIC MOTOR COMPANY LTD.
YAMAHA MOTORS INDIA LTD.
LOHIA MOTORS LTD.
MAJESTIC MOTORS LTD.
ROYAL ENFIELD LTD.
HONDA MOTORS AND SCOOTERS LTD.
RESEARCH METHODOLOGY
Research methodology usually includes how why when and from where data was collected.
Our research data was collected mainly to understand behavior amongst people of Delhi.
- PRIMARY SOURCE DATA
It is a primary source data which will include direct one 2 one collection of data from
consumers based on the above factors.
This objective will be carried out through a generalized and a standard questionnaire.
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- SECONDARY DATA SOURCE
Our secondary source of data usage will be limited.
This will be used only for various details and particulars of bikes. Also we may use these data
sources for help on techniques utilized to analyze our raw data.
Again we may also utilize it for using examples to support our findings, analysis and
conclusions.
This data mainly will be collected from people with different outlooks, mindsets, age and
gender so as to give us a wider scope of study and carry out a competent enough analysis based
on our raw data
COMPANY ANALYSED FOR REPORT: BAJAJ AUTO LTD.
PROFILE OF THE ORGANIZATION
Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and
three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (near
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Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters, motorcycles and the
auto rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.
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 and the company worth more
than 46 billion as of January 2009.
Bajaj Auto came into existence on November 29, 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 in 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 1 million vehicles in
a year.
Spin-offs and Acquisitions
The demerger of Bajaj Auto Ltd into three separate corporate entities—Bajaj Finserv Ltd (BFL), Bajaj Auto Ltd
(BAL), and Bajaj Holdings and Investment Ltd (BHIL)—was completed with the shares listing on May 26,
2008.
In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM
Sports motorcycles AG). The two companies have signed a cooperation deal, by which KTM will provide the
know-how for joint development of the water-cooled four-stroke 125 and 250 cc engines, and Bajaj will take
over the distribution of KTM products in India and some other Southeast Asian nations. Bajaj said it is open to
taking a majority stake in KTM and is also looking at other takeover opportunities. On the 8th of January 2008,
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Managing Director Rajiv Bajaj confirmed the collaboration and announced his intention to gradually increase
Bajaj's stake in KTM to 25%.
Products
Some of the models that Bajaj makes (or has made including prototypes) are:
Scooters
Bajaj Kristal DTSi
Cars
Bajaj Lite concept
Bajaj ULC (ultra-low cost)- the Tata Nano competitor.
Motorcycles
Bajaj Platina 100cc
Bajaj Platina 125 DTS-Si
Bajaj Discover 135 DTS-i
Bajaj XCD 125 DTS-Si
Bajaj XCD 135 DTS-Si
Bajaj Pulsar 150 DTSi
Bajaj Pulsar 180 DTSi
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Bajaj Pulsar 220 DTS-i
Bajaj Avenger 200 DTS-i
Competitors
HERO HONDA
Hero Honda Motors Ltd. is a popular motorcycle company in India. This company, started in 1984, was a
successful joint venture between Hero Cycles and Honda Motor Company of Japan.
Since the commencement of the company, Hero Honda has manufactured and sold more than 15 million
motorcycles. The company has established a niche in the competitive Indian and international market for
manufacturing low maintenance and high fuel efficient motorcycles. It’s the no. 1 two wheeler mfg. in the
world.
ROYAL ENFIELD
When it comes to Indian motorcycle, Royal Enfield hits the mind of every Indian motorcycle lovers because it
is one of the premier bike companies in India. This company was founded by the son of George Townsend in
1851 and was further taken over by Albert Edie and R.W. Smith in 1891.
T.V.S MOTORS
TVS Motor Company Ltd and Yamaha Motor India Ltd also have carved a niche in the Indian motorcycle
market. TVS Motor Company, established by T. V. Sundaram Iyengar in 1911, is believed to be the third
largest manufacturer of two-wheeler in India.
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TVS came up with the first two-seater moped in 1980 that eventually defined the dominion of personal
transportation in India. This company entered into a joint venture with Suzuki Motor Corporation of Japan in
1982. This collaboration was the first company to introduce a 100-cc motorcycle in the markets of India
YAMAHA
Yamaha Motor India Ltd. is continuously making efforts to break down the competitive two wheeler market in
India and win the battle with its business strategies. The business strategies and principles of this company is
customer fulfillment through quality service, research and development for introducing high end motorcycles
and optimization of the working system
S.W.O.T ANALYSIS-
STRENGTHS
Product design and development
capabilities.
WEAKNESSES
Hasn't employed the excess cash
for long.
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Extensive R & D focus.
Widespread distribution network.
High performance products across
all categories.
High export to domestic sales
ratio.
Great financial support network
(For financing the automobile)
High economies of scale.
High economies of scope.
Highly experienced management
Still has no established brand to
match Hero Honda's Splendor in
commuter segment.
Not a global player in spite of huge
volumes.
Not a globally recognizable brand
(unlike the JV partner Kawasaki)
OPPORTUNITIES
Double-digit growth in two-
wheeler market.
Untapped market above 180 cc in
motorcycles.
More maturity and movement
towards higher-end motorcycles.
The growing gearless trendy
scooters and scooterette market.
Growing world demand for entry-
level motorcycles especially in
emerging markets.
THREATS
The competition catches-up any
new innovation in no time.
Threat of cheap imported
motorcycles from China.
Margins getting squeezed from
both the directions (Price as well
as Cost)
DATA Analysis
Various techniques have to be applied on the gathered data to actually make sense of it.
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Some of these which can be used are as follows :
Sampling techniques
Primary Data Source Collection and Analysis
Mean, Mode, Median
Graphical methods
Histograms, Bar charts, Pie charts etc.
Various analysis of Frequencies
Standard Deviation
Thus above methods listed are the most contemporary and useful in sensible comprehension of
data.
Questionnaire for Bike Customers
(The findings of this survey will be used only for academic purposes by the students of Lal Bahadur Shastri Institute of Management,New delhi)
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Name of the customer
Age :
18-24
24-30
30-36
ABOVE 36
WHICH BIKE DO YOU OWN PRESENTLY ?
ANUAL HOUSEHOLD INCOME
<I LAKH
1-3 LAKH
3-5 LAKH
5-10 LAKH
>10 LAKH
WHAT IS THE PURPOSE OF YOUR BIKE?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
OFFICE
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1 2 3 4 5
LOWEST HIGHEST
TRAVELLING
1 2 3 4 5
LOWEST HIGHEST
HOUSEHOLD
1 2 3 4 5
LOWEST HIGHEST
ADVENTURE
1 2 3 4 5
LOWEST HIGHEST
OTHER
1 2 3 4 5
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LOWEST HIGHEST
PLEASE SPECIFY THE OTHER FACTOR
RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING DECISION?
(5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
MILEAGE
1 2 3 4 5
LOWEST HIGHEST
LOOKS
1 2 3 4 5
LOWEST HIGHEST
BRAND
1 2 3 4 5
LOWEST HIGHEST
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SERVICE
1 2 3 4 5
LOWEST HIGHEST
PRICE
1 2 3 4 5
LOWEST HIGHEST
WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE DECISION?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
FRIENDS
1 2 3 4 5
LOWEST HIGHEST
FAMILY
1 2 3 4 5
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LOWEST HIGHEST
DEALER
1 2 3 4 5
LOWEST HIGHEST
ADVERTISEMENT
1 2 3 4 5
LOWEST HIGHEST
OTHER FACTORS
1 2 3 4 5
LOWEST HIGHEST
PLEASE SPECIFY THE OTHER FACTOR
WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO NOTICE AN ADVERTISEMENT ?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
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TELEVISION
1 2 3 4 5
LOWEST HIGHEST
HOARDINGS
1 2 3 4 5
LOWEST HIGHEST
PRINT MEDIA
1 2 3 4 5
LOWEST HIGHEST
INTERNET
1 2 3 4 5
LOWEST HIGHEST
OTHERS
1 2 3 4 5
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LOWEST HIGHEST
IF OTHERS PLEASE SPECIFY
WHICH BRAND NAME DO YOU FIND EASY TO RECALL?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
BAJAJ
1 2 3 4 5
LOWEST HIGHEST
HERO HONDA
1 2 3 4 5
LOWEST HIGHEST
YAMAHA
1 2 3 4 5
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LOWEST HIGHEST
HONDA
1 2 3 4 5
LOWEST HIGHEST
TVS
1 2 3 4 5
LOWEST HIGHEST
RATE THE BIKES ON THE BASIS OF YOUR PREFERENCE?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
PULSAR
1 2 3 4 5
LOWEST HIGHEST
APACHE
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1 2 3 4 5
LOWEST HIGHEST
F-Z 150
1 2 3 4 5
LOWEST HIGHEST
HUNK
1 2 3 4 5
LOWEST HIGHEST
ANY OTHER
1 2 3 4 5
LOWEST HIGHEST
IF OTHER,PLEASE SPECIFY
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RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING FACTORS-
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
STYLE
1 2 3 4 5
LOWEST HIGHEST
POWER
1 2 3 4 5
LOWEST HIGHEST
PERFORMANCE
1 2 3 4 5
LOWEST HIGHEST
VALUE
1 2 3 4 5
LOWEST HIGHEST
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BRAND
1 2 3 4 5
LOWEST HIGHEST
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