HERO HONDA AND BAJAJ

A RESEARCH PROJECT ON

COMPARATIVE STUDY ON CONSUMER BUYING BEHAVIOUR OF HERO HONDA AND

BAJAJ

NEERAJ BHANDARI

BBA VI 130241182

2013014042

SHARDA UNIVERSITY

DECLARATION

I hereby declare that project Titled “PROJECT REPORT ON CONSUMER

BUYING BEHAVIOUR OF HERO HONDA AND BAJAJ” is an original piece of

research work carried out by me under the guidance and supervision of Ms.

Rachna Bansal. The information has been collected from genuine& authentic

sources. The work has been submitted in partial fulfillment of the requirement of

School of Business Studies Sharda University.

Neeraj Bhandari

School of Business Studies

Sharda University

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CERTIFICATE

I, Rachna Bansal here by certify that Mr. Neeraj Bhandari of Sharda University of

BBA (SEM-VI) has completed the project on “COMPARITIVE STUDY ON

CONSUMER BUYING BEHAVIOUR OF HERO HONDA AND BAJAJ” in the

given period of time.

The information submitted is true and original to the best of my knowledge.

Supervisor

Ms. Rachna Bansal

Sharda University

Date :

2

ACKNOWLEDGEMENT

I hereby take this opportunity to thank all those people including my friends and

colleagues who have helped me for the successful completion of this project. I

would also like to thank my entire faculty guide for the continuous support and

guidance they have rendered for the successful completion of this project. I express

my gratitude’s towards my parents and sister for their encouraging support,

incandescent sprit and endurance towards the making of this project. In the ends a

special thanks to all members who are directly or indirectly associated with the

project.

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TABLE OF CONTENT

TITLE PAGE NO.

CHAPTER 1INTRODUCTION …………………………………………………………..6 - 14

CHAPTER 2

LITERATURE REVIEW…………………………………………………….15-19

CHAPTER 3

RESEARCH AND METHODOLOGY …………………………………20-22

CHAPTER 4

ANALYSIS AND INTERPRETATION…………………………………..23-27

CHAPTER 5

FINDINGS……………………………………………………………………..28-30

LIMITATIONS AND SUGGESTIONS…………………………………30-31

CONCLUSIONS……………………………………………………………..31-32

BIBLIOGRAPHY ……………………………………………..….…….33

APPENDIX ……………………………………………………….….……34-35

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OBJECTIVES OF THE STUDY

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

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CHAPTER 1 INTRODUCTION

BAJAJ IN INDIA

Founded in 1926, 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.

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 in over a

dozen countries in Europe, Latin America, the US and Asia. The present Chairman

and Managing Director 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

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one of India’s most distinguished business leaders and internationally respected for

his business acumen and entrepreneurial spirit.

BAJAJ PULSAR DTSI

Bajaj Auto Ltd has launched Pulsar DTSi in its attempt to remain Distinctly ahead.

The all new Pulsar DTSi is packed with the path breaking next generation

technology of digital biking. Its various digital systems like capacitor discharge

ignition (CDI) system, Digital console

and Digital Twin Spark ignition(DTS

i) provides efficient fuel combustion

and better performance under all

conditions. The latest DTSi engine of

Bajaj Pulsar DTSi, with twin spark

plugs and 8 bit microprocessor chip,

generates the pulsating 18 ps of power to excite the bikers and its advanced

exhausted technology ensures the great performance at lower rpm.

The muscular aerodynamic shape of Pulsar DTSi and its 1350 mm of wheel base

with 17" large alloy wheels give this Bajaj bike a robust presence on the road. For

the first time in India, Pulsar DTSi is equipped with an Oil cooler, tube less tyres

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and new digital console that makes the Pulsar most sporty and stylish two wheelers

on Indian roads.

Launched in three variants of 200cc, 150cc and 180 cc, Pulsar DTSi has a price tag

of Rs.70-75,000 (approx.) and up for sale throughout the dealerships of Bajaj Auto

India.

KEY FEATURES OF BAJAJ PULSAR DTSi

• Engine Oil Cooler to control the temperature and maintain the high speed and

rpm.

• Digital Odometer, Digital Speedo Meter, Digital Fuel Gauge and two Digital Trip

Meters contribute to enhanced riding comfort.

• Tubeless tyres for better road grip and stability.

• First bike in India with large 33 mm front fork for better shock absorbing ability.

• Constant velocity (CV) carburetor for high level of performance.

• Split seat for better riding and sitting comfort.

• The new Petrol tank flaps give petrol tank an aerodynamic looks.

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HERO HONDA IN INDIA

“Hero” is the brand name used by the Munjal brothers in the year 1956 with the

flagship company Hero Cycles. The joint venture between India’s Hero Group and

Honda Motor Company, Japan has not only created the world’s single largest two

wheeler company but also one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was

possible to drive a vehicle without polluting the roads. The company introduced

new generation motorcycles that set industry benchmarks for fuel thrift and low

emission. A legendary Fill it - Shut it -Forget it campaign captured the imagination

of commuters across India, and Hero Honda sold millions of bikes purely on the

commitment of increased mileage.

Over 19 million Hero Honda two wheelers tread Indian roads today. Hero Honda

has consistently grown at double digits since inception; and today, every second

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motorcycle sold in the country is a Hero Honda. Every 30seconds, someone in

India buys Hero Hondas top -selling motorcycle -Splendor. This festive season, the

company sold half a million two wheelers in a single month-a feat unparalleled in

global automotive history.

HERO-HONDA UNICORN

Honda Unicorn is the first motorcycle

in India to have hi-tech Mono

Suspension, which enhances the

riding comfort and control. This is the

first motorcycle to Indian market by

the company setting up new

benchmark in the motorcycle segment

with its swift acceleration, superior mileage, international styling, riding comfort

and convenience. It is engineered and styled for the taste of the younger

generation.

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KEY FEATURES OF HERO HONDA UNICORN

• Best pick up in its class.

• It delivers an incredible 60 km’s to a liter.

• It is a perfect fusion of sporty & macho design.

• With Mono Suspension & Diamond frame, it takes all kinds of road shocks with

absolute ease.

• It is the only motorcycle equipped with a puncture resistant Tupp up Tube.

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PULSAR VS UNICORN

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13

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BAJAJ PULSAR DTSi

BENEFITS

The pulsar is a very responsive bike and pulls with authority.

It’s also much smoother than before, plus it packs in a lot of goodies like a

digital speedometer.

It is one of the most powerful 150 cc bike.

It is the best equipped bike at present, matched only by the Apache RTR

160.

DRAWBACKS

There are just too many pulsars on the road today so it is doubtful that

anyone will give you a second look.

It also has typical Bajaj problems like the chain getting loose frequently.

The engine although smooth is still not in Hondas league.

The gear box is an improvement on older pulsars but again doesn’t match

with Honda.

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HERO HONDA UNICORN

BENEFITS

The Unicorns engine is the smoothest, quietest and most refined in this

group. Ride the bike and you will understand what Honda engineering

means.

It is also the only bike with mono shock suspension in India.

It also has the best build quality.

It delivers the best mileage. And is also suitable to you because you have

very long legs.

Don’t worry about repairs on this bike as it comes with Hondas bullet proof

reliability.

DRAWBACKS

Its acceleration doesn’t matchup with other bikes in this group. But it gives

the best mileage.

It doesn’t offer value for money and the styling may look dated.

It doesn’t come with goodies like digital speedometer.

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CHAPTER 2 LITERATURE REVIEW

Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and

product/service to product/service. The state of satisfaction depends on a number

of both psychological and physical variables which correlate with satisfaction

behaviors such as return and recommend rate. The level of satisfaction can also

vary depending on other options the customer may have and other products against

which the customer can compare the organizations products.

Because satisfaction is basically a psychological state, care should be taken in the

effort of quantitative measurement. These ten domains of satisfaction include:

Quality, Value, Timeliness, Efficiency, Ease of Access, Environment, Inter-

departmental Teamwork, Front line Service Behaviors, Commitment to the

Customer and Innovation. These factors are emphasized for continuous

improvement and organizational change measurement and are most often utilized

to develop the architecture for satisfaction measurement as an integrated model.

The basis for the measurement of customer satisfaction is by using the gap between

the customers expectation of performance and their perceived experience of

performance. This provides the measurer with a satisfaction "gap" which is

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objective and quantitative in nature customer satisfaction equals perception of

performance divided by expectation of performance.

Marketers in recent times have realized the importance of marketing orientation,

and this is being reflected in the application of marketing mix elements.

Consumer’s needs are fundamental to the formulation of any marketing strategy,

from developing a communication plan. It may be worthwhile to explore the

intricate aspects of consumer satisfaction level which focuses on ‘consumer needs’.

These concepts enable marketers to analyze the acceptability of strategies planned

by them.

Even though we cannot know everything that is to be known, we do need some in

depth knowledge about the consumers, starting with who is he. Is there a real

Indian customer or there is a set of stereotype. All the conventional wisdom in

market research tends to favor the view that that there are distinct types, and we

need to isolate them according to some parameter and label them.

Customer satisfaction as the key element for success in business is a major concern

for any industry. In this paper I have tried to propose a how customer satisfaction

level can affect the performance of an organization.

Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key

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performance indicator within business and is part of the four perspectives of a

Balanced Scorecard. In a competitive marketplace where businesses compete for

customers, customer satisfaction is seen as a key differentiator and increasingly has

become a key element of business strategy.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while

targeting non-customers; measuring customer satisfaction provides an indication of

how successful the organization is at providing products and/or services to the

marketplace.

Selecting Target Market

A review of marketing opportunities often helps in identifying distinct consumer

segments with very distinct wants and needs. Identifying these groups, learning

how they behave and how they make their purchase decisions enables the marketer

to design and market products or services particularly suited for their wants and

needs.

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Based on earlier done research following conclusion were drawn about Bajaj and

Hero Honda as a Brand in two wheeler industry:

A consumer, making a purchase decision will be affected by the following three

factors:

1. PERSONAL FACTORS

2. PSYCHOLOGICAL FACTORS

3. SOCIAL FACTORS

PERSONAL FACTORS

These factors were varying from person to person. Demographic Factors like Sex,

Race, Age etc. played major role in buying two wheelers for individual use.

Young people in age group of 18-35yrs purchased two wheelers for different

various reasons while older people in age group of 35-50yrspurchased just for

travelling purpose only.

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PSYCHOLOGICAL FACTORS

There were many people who wanted to purchase two wheelers just because they

had sense of love and belonging for bikes. This was found more among Hero

Honda user. They mostly see the performance of the bike and services that

provided by companies and want their bike to be smooth while driving the bike.

SOCIAL FACTORS

There were many people who bought bikes because of social factors like on their

parents, friends and relatives opinion. There were few people who bought their

bikes for style and status. Besides this to my surprise I found out that in today’s

world boys play major role in buying decisions for themselves and for their family

also. This also played a greater role in purchasing decision of two wheelers by

individuals. Boys who were in age group of 18-25 yrs were more interested in

features as compared to other factors described.

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Chapter 3 Research and 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.

Research methodology is a way to systematically solve the research problem. It

may be understood as a science of studying how research is done scientifically. It

is necessary for the researcher to know not only the research methods/techniques

but also the methodology.

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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 has been collected by someone else and which

already have been passed through statistical process. Secondary data has been

taken from internet, newspaper, magazines and company’s 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

Greater Noida. These were 40 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

Our project was based on the Comparative Study of Bajaj V/S Hero Honda and

data was taken in the Greater Noida.

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CHAPTER 4 ANALYSIS AND INTERPRETATION

QUESTIONNAIRE

1. DO YOU HAVE A BIKE

YES

NO

BIKE

YES, 38

NO, 2

25

2. FOR WHAT PURPOSE DO YOU USE YOUR BIKE MOSTLY?

OFFICE

TRAVELLING

BOTH

OTHERS

PURPOSE

TRAVELLIN G, 16

OFFICE, 10

BOTH, 8

OTHERS, 6

3. WHICH COMPANY’S BIKE DO YOU HAVE ?

BAJAJ

HERO HONDA

26

OTHERS

BAJAJ, 12

HERO HONDA, 21

OTHERS, 7

4. WHY DID YOU JUST PREFER THIS BRAND OVER OTHERS?

QUALITY

FEATURES

AVAILABILITY

PRICE

27

QUALITY, 13

FEATURES, 19

AVAILABILITY, 3PRICE, 5

5. WHICH TYPE OF BIKE YOU PREFER FOR TRAVELLING?

100 CC

150 CC

MORE THAN 150 CC

28

100 cc, 12

150 cc, 19

MORE, 9

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CHAPTER 5

FINDINGS

From the survey, it is founded that most of the people prefer Hero Honda

unicorn for office use and travelling purpose.

If the price of Hero Honda unicorn increases there would be 5person who

will change their Brand preference.

People prefer more quality and features of two wheelers rather than the

price.

The brand image is been reflected in the individual’s mind rather than the

promotional strategies.

FACTORS INFLUENCING SALES OF TWO WHEELERS

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

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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 customer than company can create market for

itself.

AVAILABILITY

Products need to be available easily. Customer doesn’t 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 their products are easily available

to customer.

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 customer don’t have to wait too long for their

problems to be solved.

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QUALITY

The quality of products should be very good. Today’s customer want value for

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

the market.

LIMITATIONS AND RECOMMENDATION

As the study was taken in one area only, and also the sample size of doing the

survey was also very limited i.e. 40 samples. The results need to be understood

keeping in mind the sample size. Also for the study of two wheelers reveals that,

the consumers or the decider, have only the preference of Hero Honda and Bajaj

pulsar DTSi even if the price of two wheelers rises and if the same trend continues

the other companies would be finding it very difficult to be stable. This study has

made conjoint design but alternate ways to measure consumer preferences which

can be used in future.

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In the recommendation, it can be said that there should be more development in

finding out the different buying behavior and preferences by other two wheeler

industries in a promotion intensive environment and also the quality.

CONCLUSION

After doing extensive research on two wheelers I came to the following

conclusions:

21 people prefer Hero Honda (unicorn), therefore if the price of Hero Honda

product will increase than 5 people will look for another alternative. It was also

found that from the Survey of 40 Samples, 21 People prefer using unicorn, 12

person prefer Bajaj pulsar DTSI and 7 people uses other two wheelers for

travelling or office purpose.

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CUSTOMER

HERO HONDABAJAJOTHER

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BIBLIOGRAPHY

www.herohonda.com

www.bajaj.com

www.google.com

www.twowhellers.com

Sample Survey by making the Questionnaire

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QUESTIONNAIRE

Name:

Age:

Occupation:

1. Do you have a bike?

Yes

No

2. Using bike for which purpose?

Office

Travelling

Both

Others

3. Which company bike do you possess?

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Bajaj

Hero Honda

Others

4. Why did you prefer this brand over other brand?

Quality

Feature

Availability

Price

5. Will you prefer another bike if price is reduced?

Yes

No

6. Which type of bike you prefer for travelling?

100cc

150cc

More than 150cc

37