bani 35032413 mpr bajaj hero honda

8/8/2019 Bani 35032413 Mpr Bajaj Hero Honda

1/51

MINOR PROJECT REPORT

ON: FINANCIAL ANALYSIS OF TWOWHEELERS (BAJAJ AUTO VS HERO

HONDA)

Department of Business Administration

Maharaja Surajmal Institute

Submitted By:Submitted To:

Ms.Vandana DeswalBani SinghBBA (Banking & Insurance)Semester III

Roll No: 02621201809

1


2/51

CERTIFICATE

This is to certify that the project work entitled BAJAJ Vs. HERO HONDA is

a bona fide project carried out by Bani Singh, BBA(B&I) student, Maharaja

Surajmal Institute (GGSIPU) in Delhi for the fulfillment of the requirements

of the BBA program and the project work has not formed the basis for the

award previously for any degree, diploma or any other similarities.

Date:Signature

(Project Guide)

2


3/51

ACKNOWLEDGEMENT

The research on Comparative Study between Bajaj and Hero Honda has been given

to me as part of the curriculum in Bachelors Business Administration (banking &

insurance)

I have tried my best to present this information as clearly as possible using basic terms

that I hope will be comprehended by the widest spectrum of researchers, analysts and

students for further studies.

I have completed this study under the able guidance and supervision of Prof. I will be

failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance

and knowledge. I have received from them towards fruitful and timely completion of this

work.Mere acknowledgement may not redeem the debt I owe to my parents for their

direct/indirect support during the entire course of this project.

3


4/51

Table of contents

CHAPTER NO.

CHAPTER NAME

Chapter 1 Introduction1.1 Objectives1.2 Research Methodology1.3 Limitations

Chapter 2 Corporate Overview2.1 Companys History2.2 Profile2.3 Key Persons2.4 Timeline Of Releases2.5 Marketing Strategies2.6 SWOT Analysis

Chapter 3 Analysis and Interpretation

Chapter 4 Conclusions and Recommendation

Bibliography

Questionnaire

4


5/51

5


6/51

CHAPTER 1

INTRODUCTION

INTRODUCTION

6


7/51

This project is an attempt to give draw out a comparison between Bajaj Auto Ltd & Hero

Honda.

It aims to know perception of consumers regarding bikes, & factors influencing their

choice.

It throws light on the following:-

1. In 1 st Chapter you will find the Objectives, Research Methodology and

Limitations of the study.

2. In 2nd chapter you will find an overview of the company profile, history,

marketing strategies , & SWOT analysis of Bajaj & Hero Honda.

3. In 3rd Chapter you will find analysis & interpretations on the project report.

4. In 4 th Chapter you will find conclusion and suggestion on the project.

5. In the end you will find the various sources I referred for gathering information.

OUR OBJECTIVES

7


8/51

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.

RESEARCH METHODOLOGY

8


9/51

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 tocalculate the market share of this brand in regards to other brands.

Secondary data are those which has been collected by some one 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.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried in New

Delhi & Ncr. These were 20 respondents.

DATA COMPLETION AND ANALYSIS

9


10/51

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 Vs Hero Honda and data

was taken in New Delhi & Ncr only.

LIMITATIONS OF RESEARCH STUDY

10


11/51

1. Research work was carried out in Delhi & Ncr only the finding may not be

applicable to the other parts of the country because of social and cultural

differences.

2. The sample was collected using connivance-sampling techniques. As such result

may not give an exact representation of the population.

3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesnt reflect true picture.

11


12/51

CHAPTER 2

COMPANY PROFILE

HISTORY OF BAJAJ

12


13/51

COMPANY HISTORY

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches

over a wide range of industries, spanning automobiles (two-wheelers and three-

wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

13


14/51

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two-

and three- wheeler manufacturer and the Bajaj brand is well-known across several

countries in Latin America, Africa, Middle East, South and South East Asia.

Founded in 1926, at the height of India's movement for independence from the British,

the group has an illustrious history. The integrity, dedication, resourcefulness and

determination to succeed which are characteristic of the group today, are often traced

back to its birth during those days of relentless devotion to a common cause. Jamnalal

Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In

fact, Gandhiji had adopted him as his son. This close relationship and his deep

involvement in the independence movement did not leave Jamnalal Bajaj with much timeto spend on his newly launched business venture.

His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was

close to Gandhiji and it was only after Independence in 1947, that he was able to give his

full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also

diversified into various manufacturing activities.

The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965.

Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up

from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has

expanded from one to and the brand has found a global market. He is one of India's most

distinguished business leaders and internationally respected for his business acumen and

entrepreneurial spirit.

PROFILE

Founder Jamnalal Bajaj

14


15/51

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE Code: 500490; NSE - Code: BAJAJAUTO

Presence Distribution network covers 50 countries.Dominant presence in Sri Lanka, Bangladesh, Columbia,Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office AkurdiPune - 411035IndiaTel.: +(91)-(20)-27472851Fax: +(91)-(20)-27473398

Works

Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune 411501

E-mail [email protected]

Website www.bajajauto.com

KEY PERSONS

15
http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.htmlmailto:[email protected]://www.bajajauto.com/mailto:[email protected]://www.bajajauto.com/http://www.surfindia.com/finance/security-profile/bajaj-auto-finance-limited.html


16/51

Board of DirectorsRahul Bajaj ChairmanMadhur Bajaj Vice Chairman & Whole-Time Director Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director D.S. Mehta Whole-Time Director Kantikumar R. Podar Director Shekhar Bajaj Director D.J. Balaji Rao Director J.N. Godrej Director S.H. Khan Director Mrs. Suman Kirloskar Director

Naresh Chandra Director

Nanoo Pamnani Director Manish Kejriwal Director P Murari Director

Niraj Bajaj Director

Committees of the BoardAudit CommitteeS.H. Khan Chairman

D.J. Balaji Rao J.N. Godrej

Naresh Chandra Nanoo Pamnani

TIMELINE OF RELEASES & ACHIEVMENTS

2009

April Bajaj Pulsar 150 & 180 upgrade launched

January Bajaj XCD 135 DTS-Si launched

16
http://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/rahul.asphttp://www.bajajauto.com/1024/aboutbajaj/madhur.asphttp://www.bajajauto.com/1024/aboutbajaj/rajiv.asphttp://www.bajajauto.com/1024/aboutbajaj/sanjiv.asphttp://www.bajajauto.com/1024/aboutbajaj/dsmehta.asphttp://www.bajajauto.com/1024/aboutbajaj/kantikumar.asphttp://www.bajajauto.com/1024/aboutbajaj/shekhar.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/suman.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asphttp://www.bajajauto.com/1024/aboutbajaj/manish.asphttp://www.bajajauto.com/1024/aboutbajaj/pmurari.asphttp://www.bajajauto.com/1024/aboutbajaj/niraj.asphttp://www.bajajauto.com/1024/aboutbajaj/shkhan.asphttp://www.bajajauto.com/1024/aboutbajaj/balajirao.asphttp://www.bajajauto.com/1024/aboutbajaj/jngodrej.asphttp://www.bajajauto.com/1024/aboutbajaj/naresh.asphttp://www.bajajauto.com/1024/aboutbajaj/nanoo.asp


17/51

2008

September Bajaj Platina 125 DTS-Si launched

August XCD 125 DTS-Si is largest selling 125cc motorcycle

July Bajaj Discover 135 DTS-i Upgrade Launched.

June Pulsar 220 bags IMOTY award

2007

December RE GDi autorickshaw launched

September XCD 125 DTS-Si launched

August DTS-Si engine launched

July Revamping of Organisational structure

June Pulsar 220 DTS-Fi launched

April Bajaj Auto Commissions New Plant at Pantnagar, Uttarakhand

February 200 cc Pulsar DTS-i launched

January Bajaj Kristal DTS-i launched

2006

April Bajaj Platina launched

2005

December Bajaj Discover launched

June Bajaj Avenger DTS-i launched

February Bajaj Wave DTS-i launched

2004

October Bajaj Discover DTS-i launched

August New Bajaj Chetak 4 stroke with Wonder Gear launched

May Bajaj CT100 LaunchedJanuary Bajaj unveils new brand identity, dons new symbol, logo and brandline

2003

October Pulsar DTS-i is launched.

October 107,115 Motorcycles sold in a month.

July Bajaj Wind 125,The World Bike, is launched in India.

February Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive

motorcycle segment.

2001

November Bajaj Auto launches its latest offering in the premium bike segment 'Pulsar'.January The Eliminator is launched.

2000 The Bajaj Saffire is introduced.

1999 Caliber motorcycle notches up 100,000 sales in record time of 12

months.

1998 Production commences at Chakan plant.

17


18/51

June 7th Kawasaki Bajaj Caliber rolls out of Waluj.

July 25th Legend, India's first four-stroke scooter rolls out of Akurdi.

October Spirit launched.

1997 The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are

introduced.

1995

November 29 Bajaj Auto is 50.

Agreements signed with Kubota of Japan for the development of

diesel engines for three-wheelers and with Tokyo R&D for ungeared

Scooter and moped development.

The Bajaj Super Excel is introduced while Bajaj celebrates its ten

millionth vehicle.

One million vehicles were produced and sold in this financial year.

1994 The Bajaj Classic is introduced.

1991 The Kawasaki Bajaj 4S Champion is introduced.

1990 The Bajaj Sunny is introduced.

1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are

introduced.

500,000 vehicles produced and sold in a single financial year.

1985

November 5 The Waluj plant inaugurated by the erstwhile President of India,

Shri Giani Zail Singh.Production commences at Waluj, Aurangabad in a record time

of 16 months.1984

January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad.1981 The Bajaj M-50 is introduced.1977 The Rear Engine Autorickshaw is introduced.

Bajaj Auto achieves production and sales of 100,000 vehicles in

a single financial year.

1976 The Bajaj Super is introduced.

1975 BAL & Maharashtra Scooters Ltd. joint venture.

1972 The Bajaj Chetak is introduced.

1971 The three-wheeler goods carrier is introduced.

1970 Bajaj Auto rolls out its 100,000th vehicle.

18


19/51

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of

Akurdi Plant.

1959 Bajaj Auto obtains licence from the Government of India to

manufacture two- and three-wheelers.

1948 Sales in India commence by importing two- and three-wheelers.

1945

November 29 Bajaj Auto comes into existence as M/s Bachraj Trading

Corporation Private Limited.

MARKETING STRATEGIES

The focus of BAL off late has been on providing the best of the class models at

competitive prices. Most of the Bajaj models come loaded with the latest features within

the price band acceptable by the market. BAL has been the pioneer in stretching

competition into providing latest features in the price segment by updating the low price

19


20/51

bikes with the latest features like disk-brakes, anti-skid technology and dual suspension,

etc.

BAL adopted different marketing strategies for different models, few of them are

discussed below: -

CALIBER - The focus for the Caliber 115 was youth. And though Bajaj made the bike

look bigger and feel more powerful than its predecessor (characteristics that will attract

the average, 25-plus, executive segment bike buyer). Going by the initial market

response, the campaign was clearly a hit in the 5-10 years age bracket. So, the teaser

campaign and the emphasis on the Caliber 115 being a `Hoodibabaa' bike placed it as a

trendy motorcycle for the college-goers and the 25 plus executives both at the same time.

PULSAR - Pulsar was launched in direct competition to the Hero Honda's 'CBZ' model

in 150 cc plus segment. The campaign beared innovative punch line of "Definitely Male"

positioning Pulsar to be a masculine-looking model with an appeal to the performance

sensitive customers. Pulsar currently offers four varieties the Bajaj Pulsar 150 cc,the

Bajaj Pulsar 180 cc,the Bajaj Pulsar 200 cc,and the Bajaj Pulsar 220cc. Bajaj Pulsar bikes

range in on road prices from around Rs. 62,500 to Rs. 90,500. The Pulsar DTS Fi is the

first bike in the Indian market to have both front and rear disc brakes.

DISCOVER - The Bajaj Discover has two variants with 110 cc and 135cc engine. Bajaj

Discover targets the middle class two wheeler consumers with Bajaj bike prices ranging

from Rs. 46,000 to Rs. 55000. The Bajaj Discover 135 cc is easy to control, easy on the

pocket, and a good choice between a 125 cc and 150 cc motorbike.

PLATINA : It is the leader in mileage & looks in the 100 cc class. The Bajaj Platina is

resplendent in Platinum silver colour and shiny chrome graphics enhanced by a

contrasting matt black silencer and graphite-tinted engine.The bike has a plush ride

without sacrificing handling. It has an upright riding posture inline with other commuter

bikesCurrently there are two variants of Platina available with engine capacities of 100

20


21/51

and 125 cc. The 100 cc Platina was launched in April 2006 at an ex-showroom price of

Rs 36,000 and crossed sales of 500,000 units within eight months of its launchedPlatina

125 DTS-Si was introduced in September 2008 with sales of more than 30,000 units per

month

AVENGER - Bajaj Avenger (DTSi) offers the ultimate cruiser experience. Offering high

stability and long cruising delights, Bajaj Avenger (DTSi) possesses wider saddle seat,

special backrest besides 180cc powerful engine. It is targeted at the upper middle-class

bike lovers. The Avenger now has a single variant, the Bajaj Avenger priced at around

Rs. 70,000.

21


22/51

SWOT ANALYSIS

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,

weaknesses, threats and opportunities available.

STRENGTHS :

Highly experienced management.

Product design and development capabilities.

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.

WEAKNESS :

Hasn't employed the excess cash for long.

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)

22


23/51

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)

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.

23


24/51

HISTORY OF

HERO HONDA

24


25/51

COMPANY HISTORY

Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagship

company Hero Cycles. The two-wheeler manufacturing business of bicycle components

had originally started in the 1940s and turned into the worlds largest bicycle

manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The

Munjals roll their own steel, make free wheel bicycle critical components and have

diversified into different ventures like product design. The Hero Group philosophy is:

To provide excellent transportation to the common man at easily affordable prices and

to provide total satisfaction in all its spheres of activity. The Hero group vision is to

build long lasting relationships with everyone (customers, workers, dealers and vendors).The Hero Group has a passion for setting higher standards and Engineering Satisfaction

is the prime motivation, way of life and work culture of the Group.

Hero Honda is a joint venture that began in 1984 between the Hero group of India and

Honda from Japan . It has been the world's biggest manufacturer of 2-wheeled motorized

vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero

Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in Dharuhera

and Gurgaon, both in Haryana , India. It specializes in dual use motorcycles that are low

powered but very fuel efficient.

Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing

16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of

motorcycles available. It holds the record for most popular bike in the world by sales for

Its Splendor model .

25
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hondahttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Haryana


26/51

COMPANY PROFILE

Hero Honda Motorcycle Ltd.

Type Public company BSE :HEROHONDA MFounded January 19, 1984 in Gurgaon , Haryana , IndiaHeadquarter

s Haryana , India

Key people

Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing

Director

Mr. Pawan Munjal, Managing DirectorIndustry AutomotiveProducts Motorcycles, ScootersRevenue U$ 2.8 billionWebsite http://www.herohonda.com/site/home/home.asp

KEY PERSONS

26
http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Websitehttp://www.herohonda.com/site/home/home.asphttp://en.wikipedia.org/wiki/Image:Green_up.pnghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_Japan_(bordered).svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:Flag_of_India.svghttp://en.wikipedia.org/wiki/Image:HeroHonda.gifhttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Publichttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Websitehttp://www.herohonda.com/site/home/home.asp


27/51

No

.

Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director2 Mr. Pawan Munjal Managing Director3 Mr. Toshiaki Nakagawa Jt. Managing Director4 Mr. Takao Eguchi Whole-time Director5 Mr. Satyanand Munjal Non-executive Director6 Mr. Om Prakash Munjal Non-executive Director7 Mr. Tatsuhiro Oyama Non-executive Director8 Mr. Masahiro Takedagawa Non-executive Director9 Mr. Narinder Nath Vohra Non-executive & Independent

Director

10 Mr. Pradeep Dinodia Non-executive & IndependentDirector

11 Gen.(Retd.) Ved Prakash

Malik

Non-executive & Independent

Director12 Mr. Analjit Singh Non-executive & Independent

Director13 Dr. Pritam Singh Non-executive & Independent

Director14 Ms. Shobhana Bhartia Non-executive & Independent

Director15 Dr. Vijay Laxman Kelkar Non-executive & Independent

Director

TIMELINE OF RELEASES & ACHIEVMENTS

27
http://www.herohonda.com/co_board_directors.htm#1http://www.herohonda.com/co_board_directors.htm#2http://www.herohonda.com/co_board_directors.htm#3http://www.herohonda.com/co_board_directors.htm#4http://www.herohonda.com/co_board_directors.htm#5http://www.herohonda.com/co_board_directors.htm#6http://www.herohonda.com/co_board_directors.htm#7http://www.herohonda.com/co_board_directors.htm#8http://www.herohonda.com/co_board_directors.htm#9http://www.herohonda.com/co_board_directors.htm#10http://www.herohonda.com/co_board_directors.htm#11http://www.herohonda.com/co_board_directors.htm#11http://www.herohonda.com/co_board_directors.htm#12http://www.herohonda.com/co_board_directors.htm#13http://www.herohonda.com/co_board_directors.htm#14http://www.herohonda.com/co_board_directors.htm#15http://www.herohonda.com/co_board_directors.htm#1http://www.herohonda.com/co_board_directors.htm#2http://www.herohonda.com/co_board_directors.htm#3http://www.herohonda.com/co_board_directors.htm#4http://www.herohonda.com/co_board_directors.htm#5http://www.herohonda.com/co_board_directors.htm#6http://www.herohonda.com/co_board_directors.htm#7http://www.herohonda.com/co_board_directors.htm#8http://www.herohonda.com/co_board_directors.htm#9http://www.herohonda.com/co_board_directors.htm#10http://www.herohonda.com/co_board_directors.htm#11http://www.herohonda.com/co_board_directors.htm#11http://www.herohonda.com/co_board_directors.htm#12http://www.herohonda.com/co_board_directors.htm#13http://www.herohonda.com/co_board_directors.htm#14http://www.herohonda.com/co_board_directors.htm#15


28/51

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd.

Japan signedShareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1994 New motorcycle model - "Splendor" introduced

1997 New motorcycle model - "Street" introduced

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified

ISO-14001 by DNV Holland

Splendor declared 'World No. 1' - largest selling single two-

wheeler model

"Hero Honda Passport Programme" - CRM Programme

launched

2001 New motorcycle model - "Passion" introduced

One million production in one single yearNew motorcycle model - "Joy" introduced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,

Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7

million sales mark

Splendor has emerged as the World's largest selling model

for the third calendar year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

28


29/51

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

Splendor - World's largest selling motorcycle crossed the 5

million markNew motorcycle model - "CBZ*" introduced

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

MARKETING STRATEGIES

Hero Honda globally known of being the most fuel-efficient and the largest CBZ sellingIndian motorcycle company. This is a relationship so harmonious that Hero Honda has

managed to achieve indigenisation of over 95 percent, a Honda record worldwide. The

company is committed to provide the customer with excellence. A rich background of

producing high value products at reasonable prices led the world's largest manufacturer

of motorcycles to collaborate with the world's largest bicycle manufacturer

29
http://auto.indiamart.com/hero-honda/http://auto.indiamart.com/hero-honda/http://auto.indiamart.com/hero-honda/


30/51

CD DAWN :

Honda CD Dawn is a beginner's bike well tested on Indian roads and proven in city

conditions. Hero Honda CD Dawn is a no-nonsense bike that's all about price and utility.

New bikes have showroom prices of around Rs. 32,000 and on-road prices of around Rs.

37,000.

SPLENDOR NXG :

The Hero Honda Splendor NXG is a new age bike in Hero Honda's 100 cc stable.

Stunning looks, economic performance, and a multitude of features backed by Hero

Honda's reliable support network, makes this a good choice for the city commuter. The

Hero Honda Splendor NXG is now available at a showroom price of around Rs. 42,000.

Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports severalimprovements over the old splendor. Hero Honda Super Splendor is not a bike to race

with, but one you can depend on to get you to your destination and back in the city safely

and economically.

PASSION PLUS :

Hero Honda Passion Plus is a bike meant for the executive city commuter. This improved

version of the Hero Honda Passion comes with several improvements over its earlier

versions and gives an easy ride and easy handling. New bikes have showroom prices of around Rs. 42,700.

CBZ EXTREME :

30
http://www.infibeam.com/SDP.action?catalogId=P_A_B_HEROHONDASPLENDORNXG2007http://www.infibeam.com/SDP.action?catalogId=P_A_B_HEROHONDAPASSIONPLUS2007http://images.google.co.in/imgres?imgurl=http://www.iloveindia.com/bikes/pics/herohonda-passion-plus.jpg&imgrefurl=http://www.iloveindia.com/bikes/hero-honda/passion-plus.html&usg=__Vv3HzWfnZFsNiVhlm1oXHgacg40=&h=450&w=600&sz=43&hl=en&start=48&um=1&itbs=1&tbnid=eJrZ4lmo_8oGGM:&tbnh=101&tbnw=135&prev=/images%3Fq%3Dhero%2Bhonda%2Bbikes%26ndsp%3D18%26hl%3Den%26sa%3DN%26start%3D36%26um%3D1http://images.google.co.in/imgres?imgurl=http://www.bikez.com/pictures/hero%2520honda/2004/22066_0_1_2_karizma_Image%2520credits%2520-%2520SCP.jpg&imgrefurl=http://www.bikez.com/bike/show_review.php%3Freview%3D513&usg=__BOu91V1JkreW3T3K_pF1UqUGaok=&h=368&w=400&sz=34&hl=en&start=10&um=1&itbs=1&tbnid=gs5IXCvjxhAmYM:&tbnh=114&tbnw=124&prev=/images%3Fq%3Dhero%2Bhonda%2Bbikes%26hl%3Den%26sa%3DX%26um%3D1http://images.google.co.in/imgres?imgurl=http://img.photobucket.com/albums/v157/lal65_us/Hero-Honda-cbz.jpg&imgrefurl=http://autoindia.blogspot.com/2004/08/hero-honda-cbz-indian-honda-bike.html&usg=__-TzLLPNb9m32k_TUMBL47N-pEBE=&h=208&w=230&sz=16&hl=en&start=14&um=1&itbs=1&tbnid=uuDdrFAhH7Ip3M:&tbnh=98&tbnw=108&prev=/images%3Fq%3Dhero%2Bhonda%2Bbikes%26hl%3Den%26sa%3DX%26um%3D1http://www.infibeam.com/SDP.action?catalogId=P_A_B_HEROHONDASPLENDORNXG2007http://www.infibeam.com/SDP.action?catalogId=P_A_B_HEROHONDAPASSIONPLUS2007


31/51

Expected to capture the top position in the premium segment with this bike. Price for two

variants of kick-start and self-start for CBZ X-treme is Rs 54,000 and Rs 56,000. Both

the variants comes with alloy wheel and disc brakes as standard fitment.

Alloy wheels, speedo console, split rear grab rail and bikini fairing all add to the

muscular styling giving it a big bike feel. launched in early. Was the first sports oriented

4-stroke bike. Sporting an original Honda 156.8 cc engine, it made good 12.8PS of power

which was sufficient enough to propel it to 110[120 on Speedo] km/h. The styling of the

bike was a scaled version of the famous Honda CB series. Sufficient mid-range torque

ensured a 060 km/h (0-37 mph) in just 5 seconds.

KARIZMA ( R, ZMR) :

The Hero Honda Karizma is the flagship motorcycle of Hero Honda. It was launched in

May 2003 and was replaced by a cosmetic upgrade Karizma R .The bike has been

prominently associated with the reality show MTV Roadies. It currently retails at Rs

82,502. The bike addresses to those who have a passion for speed and styling and head-

turning looks. Karizma sports an all aluminum, undersquare engine ( bore 65.5 mm and

stroke 66.2 mm) running a compression ratio of 9:1.The top speed is around 120 km/h

and the 0-60 km/h is achieved around 3.8 seconds. The Karizma is reported to have an

overall fuel economy of 38 km/l (90 mpg or 2.4 l/100 km), with a best of 50 km/l (120

mpg) and a worst of 28 km/l (66 mpg). Hero Honda has launched the revamped version

of its performance motorcycle, the Karizma ZMR. Introduced at a price of

91,000.showroom Delhi. To compete with Bajaj Pulsar 220.

SWOT ANALYSIS

STRENGTHS :

Huge brand equity/reputation among customers.

Research and development- due to joint venture with Japanese giant HONDA.

31
http://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/MTV_Roadieshttp://en.wikipedia.org/wiki/Undersquarehttp://en.wikipedia.org/wiki/Bore_(engine)http://en.wikipedia.org/wiki/Stroke_(engine)http://en.wikipedia.org/wiki/Compression_ratiohttp://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Hero_Hondahttp://en.wikipedia.org/wiki/MTV_Roadieshttp://en.wikipedia.org/wiki/Undersquarehttp://en.wikipedia.org/wiki/Bore_(engine)http://en.wikipedia.org/wiki/Stroke_(engine)http://en.wikipedia.org/wiki/Compression_ratio


32/51

Models/products in almost every bike segment.

Healthy growth in profits.

Ability to understand customer needs & wants.

Its after sales service.

Maintenance cost is low.

WEAKNESSES :

Low cash reserves due to massive dividend payouts

Virtual absence in the highly lucrative bike segments

Imports >31% of its spare parts requirements

Slow to react to market changes- Slow innovation- late entrants into the 125ccsegment

Too much dependence on few models.

OPPORTUNITIES :

125cc bike segment - This segment is yet to pick pace

Exports market is yet to be properly exploited. HHMLcan still make it

Ads appealing to youth can do wonders for thecompany

32


33/51

Cruiser bike segment is unexplored by HHML.

Discounts & loans offered lead to great demand.

THREATS :

All major bike makers in the world are lining up for India.

The growth in two-wheeler market is slowing down.

Absence in 150cc could harm the growth plans of HHML as future lies in the150cc and 125cc markets.

Low cash reserves.

HHML is losing a foothold in the exports market which is now dominated byBajaj .

33


34/51

CHAPTER 3

ANALYSIS & INTERPRETAION

FACTORS INFLUENCING SALES OF TWO WHEELERS

34


35/51

FEATURES : It plays major role in sale on any bikes. Today people are more attracted

towards the features of bikes and are ready to spend huge amount of money on buying a

handset having huge numbers of features.

E.g. Hero Honda karizma

PRICE : Price also plays a major role. Companies need to place their products in such a

way that it can differentiate itself from others by its price. If price of bike is kept low and

more features are provided to customers than company can create market for itself.

AVAILABILITY : Products need to be available easily. Customers dont like to travel

much to buy bikes. They prefer to get their bikes from nearest showrooms so in order to

be market leader companies should make sure that there products are easily available tocustomers.

AFTER SALES SERVICE : Companies should make sure that they provide good after

sale service to their customers and there problems are rectified as soon as possible. The

turnaround time should be very less that customers dont have to wait too long for their

problems so to be solved.

QUALITY : The quality of products should be very good. Todays customers want value

for money if that is not provided than company will find it difficult to position itself in

the market.

35


36/51

Q1) Which bike do you have?

Hero Honda 47Bajaj 38Any other 15

36


37/51

Hero honda

Bajaj

Any other

Q2) Which Model do you Have?

Hero Honda BajajSplender 21 CT 100 7

Passion 13 Discover 12Karizma 7 Pulsar 11Any other 6 Any other 8

0

2

4

6

8

10

12

14

1

Model Name

N o o

f P e r s o

Bajaj

CT 100

Discover

Pulsar

Any other

Q3) In which family Income level do you Fall?

100000-200000 22200000-300000 45300000-400000 23above 400000 10

37


38/51

0

10

20

30

40

50

1

In c o m e le v

N o o f P

e r s o n s 100000-20000

200000-30000

300000-40000above 400000

Q4) For how long do you own a bike?

0-1 year 341-2 year 292-3 year 26above 3 year 11

0

10

20

30

40

No o f Pe r son

1

No of ye ar

0-1 year

1-2 year

2-3 year

above 3 yea

38


39/51

Q5) For what purpose do you use your Motor Bike?

Hero Honda BajajOffice Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3

0

5

1 0

1 5

2 0

O f f ic ePurp os e

Pe r s on a lpu rpo s e

Jo yPurp os e

O th er

P u r p o

N o o

f P

e r s o n s H e r o H o n

B a ja j

Q6) How do you come to know about this Motor Bike?

Hero Honda BajajNewspaper 4 2

39


40/51

Television 23 16

Magazine 2 1

Friends &Relative 18 19

0

5

10

15

20

25

HeroHonda Bajaj

Name of Company

N o o

f P e r Newspaper

Television

Magzine

Friends &Relative

Q7) Does Advertisement Influence your decisionin choosing a Motor Bike?

Yes 87%No 5%Cant say 8%

Yes

No

Cant say

Q8) Do you have full knowledge about Bikes beforebuying?

Hero Honda Bajaj

40


41/51

Yes 25 23

No 22 15

0

510

15

20

25

30

Hero Honda Bajaj

Company Name

N o o

f p e r s o n s

Yes

No

41


42/51

Q9) Which Factor below Influence your decision?

Hero Honda Bajaj

Price 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28%Status symbol 10% 7%

0%

20%

40%60%

80%

100%

Hero Honda Bajaj

Com pany Nam

N o o

f P e r s o n s

Price

Mileage

Quality

Resale V alue

Status s ymbo

42


43/51

Q10) How would you rate the following factors of Bikeswith respect to different company?

Hero Honda Bajaj

Mileage 74% 72%Price 68% 65%Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55%

0 %

2 0 %

4 0 %

6 0 %8 0 %

1 0 0 %

He ro Ho nd a B a ja j

C o m p a n y Na

N o

o f P

e r s o n s Mileage

Pr ic e

Pic k u p

Main tenanc

L o o k & S h a

Bran de Ima

Q11) If new Bike with good features comes in, then would you

43


44/51

like to change your bike?

Hero Honda Bajaj

Yes 19 21No 17 14Cant say 11 3

0

5

1 0

1 5

2 0

2 5

Y e s N o Ca n t s a y

V ie w

N o o

f P

e r s o n s H e r o H o n

Ba ja j

44


45/51

CHAPTER 4

CONCLUSION & RECOMMENDATIONS

45


46/51

CONCLUSION

1. Hero Honda is considered to be most fuel-efficient bike on Indian roads,& have

better quality, higher resale as compared to Bajaj Bikes.

2. Bajaj Service & Spare parts are available throughout India in local markets also,&

Bajaj bikes have comparatively low maintenance cost in contrast to hero Honda bikes.

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

maintenance cost, fuel efficiency.

4. Majority of the respondent had bought their motorcycle more than 3 years.

5. Market leader Hero Honda has lost more than 3 per cent of its market share in the

motorcycle segment to its nearest rival Bajaj Auto.

6. Bikes such as Bajaj Pulsar, Hero Honda Hunk,Karizma are purchased by young

generation 18 to 30 because they prefer stylish looks and rest of the models of Hero

Honda are purchased more by daily users who needs more average of bikes than looks.

46


47/51

RECOMMENDATIONS

1. BAL should adopt a deliberate strategy of focusing on executive and premium

segment motorcycles and three-wheelers, and is reducing its dependence on lower-

end of motorcycles and scooters segment.

2. Bajaj Auto Ltd needs to tap the export market more efficiently as there is a huge

potential to make India as the world's two-wheelers production base. For this, itneeds to look for joint ventures abroad.

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

4. More service centers should be opened for Hero Honda Bikes.

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

importance by Hero Honda.

6. They Should also introduce some good finance/discount schemes for students.

47


48/51

BIBLIOGRAPHY

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

6. www.wikepedia.com

7. www.bikeindia.com

8. www.overdive.com

48
http://www.herohonda.com/http://www.google.com/http://www.bajaj.com/http://www.twowheeler.com/http://www.extrememachines.com/http://www.wikepedia.com/http://www.bikeindia.com/http://www.overdive.com/http://www.herohonda.com/http://www.google.com/http://www.bajaj.com/http://www.twowheeler.com/http://www.extrememachines.com/http://www.wikepedia.com/http://www.bikeindia.com/http://www.overdive.com/


49/51

QUESTIONNAIRE

NAME: -

CONTACT NO .

AGE:- 15-20 20-25

30-40 Above 40

OCCUPATION:- Businessman Employee

Student Other

Q1) Which Bike do you have?

Hero Honda Bajaj Bajaj Any Other

Q2) Which Model do you have?

Hero Honda: - Splendor Passion

Karizma Other

Bajaj: - CT 100 Discover

Pulsar Other

Q3) In which Family Income do you Fall?

100000-200000 200000-300000

300000-400000 Above 400000

Q4) For how long do you own a Bike?

0-1 year 1-2 year

2-3 year above 3 years

Q5) For what purpose do you use your Motor Bike?

Office Purpose Personal Purpose

49


50/51

Joy Purpose Other

Q6) How do you come to know about this Motor Bike?

Newspaper Television

Magazines Friends/Relatives

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

Yes No Cant say

Q8) Do you have full knowledge about Bikes before buying?

Yes No

Q9) Which factor below influence your decision?

Price Mileage Quality

Resale Value Status Symbol

Q10) How would you rate the following factors of bikes with respect to different companies?Hero Honda Bajaj

Mileage

Price

Pick up

Maintenance

Look/Shape

Brand Image

Q11) In new bike with good feature comes in, then would you like to change your bikes?

Yes No Cant say

Q12) Any Suggestions for Company

Date: (Signature)

50


51/51

bani 35032413 mpr bajaj hero honda

Documents