G. L.

BAJAJ
INSTITUTE OF MANAGEMENT & RESEARCH
Approved by A.I.C.T.E. & Affiliated to Uttar Pradesh Technical University, Lucknow Plot No. 2, Knowledge Park III, Greater Noida Uttar Pradesh-201308

A DISSERTATION PROJECT REPORT ON

BUYERS BUYING BEHAVIOUR WITH SPECIAL REFERENCE TO TWO WHEELER BIKES

Submitted for partial fulfillment of the award of degree of Master of Business Administration (MBA)

From Uttar Pradesh Technical University, Lucknow

UNDER THE GUIDANCE OF:

MR. ANKUR PANDEY Assistant Professor
Department of Management Studies

SUBMITTED BY
TAUSEEF AHMAD 1290570100 2012-14

G. L. BAJAJ
INSTITUTE OF MANAGEMENT &RESEARCH GLBIMR Approved by A.I.C.T.E. & affiliated to Uttar Pradesh Technical University
Dated:

CERTIFICATE
This is to certify that Mr. TAUSEEF AHMAD has undertaken this project work entitled BUYERS BUYING BEHAVIOUR WITH SPECIAL REFERENCE TO TWO
WHEELER BIKES

as Dissertation Project Report for the partial fulfillment of the

award of Master of Business Administration degree for Uttar Pradesh Technical University, Lucknow (U. P.). As per best of my knowledge this Dissertation project work is an original piece of work and has not been submitted or published elsewhere.

I wish him/ her all the best for his bright future ahead.

(Mr. Ankur Pandey) Assistant Professor

1

STUDENT DECLARATION

I Tauseef Ahmad student of Masters of Business Administration- IV Semester of G.L Bajaj Institute of Management and Research Gr. Noida, hereby declare that I have completed Dissertation Project Report on BUYERS BUYING BEHAVIOUR WITH SPECIAL REFERENCE TO TWO WHEELER BIKES as par the course requirements. I further declare that the information presented in this project is true and original to the best of my knowledge. and It is my original work and the same has not been submitted for the award of any other diploma or degree.

TAUSEEF AHMAD

Acknowledgement
I take this opportunity to express my profound debts of gratitude and obligation, to my Head of Dept. Dr.Deepa Gupta, Director, G. L. Bajaj institute of technology and management,Greater Noida for his most valuable help and creative suggestions at all stages of my work. His learned advice and guidance always kindled inspiration in the face of difficulties encountered in the course of this research work.

I am also thankful to my mentor Mrs. Ankur pandey, Asst. Professor,G. L. Bajaj institute of management and research,Greater Noida , for allowing me to work on this project work and for his kind help always.

I am highly grateful to my all lecturers and dedicated staff of G. L. Bajaj institute of technology and management, Greater Noida for their kind help from time to time.

I am also thankful to the respondents, all my friends and also to various Auto experts and consumers for their kind and valuable guidence, whom I consulted for my present work.

(TAUSEEF AHMAD)

ABSTRACT
This project aims at studying the consumer buying behavior and factor which affect the

consumer buying decision process. As the objectives of my study is to analyze the customer

perception and the customer satisfaction to wards specific brands of bike (TVS, HONDA,

BAJAJ) on the basis of Price, Fuel efficiency, Brand, Style and comfort name.

The objective of the research is to know the Customers buying behavior for purchasing two wheeler bikes on the basis of Price, Fuel efficiency, Brand, Style and comfort name in Delhi & NCR.

In this era of cut throat competition, no company can even survive in the market place without knowing its and its products strengths and weaknesses. It has to fortify itself against threats from the environment and exploit its strengths or increase profits. And in order to do so, the company has to conduct regular surveys to know the customers opinions, needs, and preferences. This helps the company to manufacture the product like wise for each customers expectations.

Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buys services and goods for personal consumption. Consumer behavior is influenced strongly by culture, social, personal and psychological factors. Culture factors include the set of basic values, perceptions, wants and behavior learned by a member of society from family and other important institutions. The social factors include consumers family, small group, social roles and status. The personal characteristics such as buyers age, life cycle stage, 4

occupation, economic situations and life style influenced by four major psychological factors: Motivation, Perception, Learning, Belief and Attitudes. In Research Methodology, First and the foremost step is to clearly define the universe to be studied. As I have taken the area of Delhi & NCR, so for me here the universe is Delhi area. No doubt it is a finite universe but the area is very big and cant be covered easily due to shortage of time. Here my sample unit includes college gong students who own bikes. In sample size I have taken the sample of 200 consumer who have bikes. In parameter of interest I had taken all consumers who own their bikes. This includes random sampling, convenience sampling. So I find that the most of the buyers are influenced by the mileage, maintenance cost, and price at the purchasing of the two wheeler bikes. 120 buyers out of 200 buyers of bikes says that they are influenced by the mileage, maintenance cost, price and service availability of the company. And 50 buyers are said that they are influenced by the stylish look and sporty look of the bikes. The main limitation of research was short time period for research and low number of respodents for the response. .

Table of Contents
CHAPTER NO. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. CHAPTER NAME Introduction Introduction to subject under study Introduction to industry under study Literature review Objective and hypotheses Research methodology Data analysis Conclusion Recommendation Bibliography PAGE NO.

List of Tables/Figures
Table/Figure no. Figures Particular Page no.

1. 2. 3. 4. 5. 6. 7. 8.

Fig. 1 in Analysis of data collection Fig. 2 in Analysis of data collection Fig. 3 in Analysis of data collection Fig. 4 in Analysis of data collection Fig. 5 in Analysis of data collection Fig. 6 in Analysis of data collection Fig. 7 in Analysis of data collection Fig. 8 in Analysis of data collection

81 82 83 84 85 86 87 88

Tables

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Production of the two automobile industry Sales of the two wheeler bike in Indian segment Export the two wheeler bike in Indian market Table 1 in Analysis of data collection Table 2 in Analysis of data collection Table 3 in Analysis of data collection Table 4 in Analysis of data collection Table 5 in Analysis of data collection Table 6 in Analysis of data collection Table 7 in Analysis of data collection Table 8 in Analysis of data collection

21 21 22 81 82 83 84 85 86 87 88

CHAPTER 1 : INTRODUCTION

INTRODUCTION
PROFILE OF THE STUDY
In this era of cut throat competition, no company can survive in the market place without knowing its products strengths and weaknesses. It has to fortify (Strengthen) itself against threats from the environment and exploit its strengths for increasing profits. In order to do so, the company has to conduct regular surveys to know the customers opinions, needs, and preferences. This helps the company to manufacture the product according to customers expectations. It has now become more important for the customer confidence and higher positioning of buyer perception. Thus, Surveys becomes genuine key to success. The Bike segment is Dominated by 4 major players viz. HERO HONDA , BAJAJ, TVS, ROYAL ENFIELD .Besides these, there are players like HONDA(Alone) , LML, KINETIC, SUZUKI. The expanding Indian market, the growing size of the middle class and the rise in aspirations of the youth along with opening up of the Indian economy have collectively influenced the steady growth of the two wheeler market in India. With leading foreign brands in collaborations with Indian manufacturers entering the Indian market, the customer could not have asked for more. In fact, the Indian bike market has grown immensely and the preference for variety looks, design has brought in a number of models in the market. In the last 3 to 4 years, the craze for motorcycle over the scooters has picked up and one can find today even girls crazy for a motorbike not only in the Metros but in small towns and cities also.

Trying to catch up with these, manufacturers are busy working out on customer profiles. With the increase in competition one can find a think of discounts including: cash rebates and free accessories to push sales of the commuter bikes. Certain changes are also visible as far as customer preferences are concerned. The basic 100cc bike market is suddenly experiencing a slow down in the growth. This Commuter bike was a favorite till the other day, commanding up to 90% of the total bike sales. The shift towards 150 cc bikes is suddenly discernable and the segment is expected to grow in near future. Manufacturers are now rushing in to introduce bikes in this segment. Bajaj has launched Pulsar-Dtsi 150cc higher on the power ladder, Honda has come up with Unicorn and TVS has recently launched Apache. The customer is the basic ingredient of marketing. The development of marketing strategy is based on understanding of consumer and there behavior. The present study attempts to understand the behavior of consumer for their choice in purchasing two-wheeler with special reference to bikes like Honda(Unicorn), TVS (Apache), and Bajaj(Pulsar 150cc). But consumer behavior and the derived consumer satisfaction cannot be intact. Now days the two wheeler industry is growing at its fast speed. The competition is very hard and so many choices are available to customers. Here I have tried to find out the level of customer satisfaction regarding (Unicorn, Apache, and Pulsar) two wheelers and also what modification they want in their products. So the study is all about the customers preference and their satisfaction with regard to bikes coming under 150cc segment.

10

CHAPTER 2:
INTRODUCTION TO SUBJECT UNDER STUDY

11

CONSUMER BEHAVIOUR
Before getting into details of Consumer Behaviour, one must go through certain basic terminologies. In general terms both Consumer and Customer are considered the same but they are quite different. The term Customer is somewhat different from the term consumer. The term customer is used to refer to someone who purchases goods and services from a particular store or company. Thus a customer is defined in terms of a specific term while a consumer is not Consumer may be referred to any one engaged in evaluating, acquiring, using or disposing of goods and services which he expects will satisfy his needs. So ultimately Consumers are that individual who consumes or uses a product, which may or may not be purchased by him. So after getting into these terms we need to get into the details of Consumer Behaviour. Consumer Behaviour Consumer behaviour refers to how a consumer behaves or acts or reacts in making a purchase of goods and services of his choice in different situations

The term consumer Behaviour can be defined as, The behaviour that consumers display in searching for purchasing, using, evaluating and disposing of products, services and ideas which they expect will satisfy their needs. Leon G. Schiffman and Leslie Lazar Kanuk.

The study of consumer behaviour not only focuses on how and why consumers make buying decisions, but also focuses on the uses which consumers make of the goods they buy and their 12

evaluation of these goods after use. If the goods after use dont satisfy the consumers, they my feel dissatisfied perhaps because post- purchase services are not up

to their satisfaction, and thus, this may influence their purchase of the goods and it may also influence the buying decision of many others who might come in contact with them. The detailed study of Consumer Behaviour or Consumer Preferences focuses on Who Buys products or services? How do they buy products or services? Where do they buy them? How often do they buy them? When do they buy them? Why do they buy them? How often do they use them? These questions will help in understanding the factors that influence the decision making process of the consumers. The buyers decision making process includes the following:1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behavior

13

14

1. Problem recognition: - First and the foremost step is to identify the problem i.e. what actually one wants with regard to the product. 2. Information Search: - Second step is to search the relevant information regarding the Product which one wants. 3. Evaluation of alternatives: - Third step is to evaluate the collected information i.e. analyze the information. 4. Purchase decision: - In forth step the product is actually purchased. 5. Post purchase behaviour: - In fifth step the consumer actually reacts against the quality, quantity etc received after the purchasing the product i.e. in this stage he reacts on the basis of his getting satisfied after the purchase of the product.

The buyers decisions include the following: Product choice Brand choice Dealer choice Purchase timing Purchase amount.

Consumer perception How do Buyers form their preference? Their preferences are influenced by their past

buying experience, friends and associates advice, and the marketers and competitors information and promises. Though customer preference is a very qualitative term and it is very

15

difficult to measure. In this study an effort has been made to measure the customer preference level.

Customer Satisfaction Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation As the definition makes it clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of the expectations of the customer, the customer is dissatisfied. If the performance exceeds the expectations, the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch, when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not just a rational preference. The result is high customer loyalty.

In this highly competitive world customers plays a very important role. Thus, if a company wants to survive then it should look forward to the determinants of customer satisfaction. Though it is a very subjective issue that differs from individual to individual yet, identifying some basic parameters of customer satisfaction is important.

Satisfaction is a persons feeling of pleasure and disappointment resulting from comparing a products perceived performance in relation to his or her expectations. It is only the customer delight that marketer aims for.

16

Types of consumer buying behavior are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others. High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk Social risk Economic risk

17

The four type of consumer buying behavior are: Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand. Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning.

The purchase of the same product does not always elicit the same Buying Behavior. Product can shift from one category to the next. For example: Going out for dinner for one person may be extensive decision making (for someone that does not go out often at all), but limited decision making for someone else. The reason for the dinner, whether it is an anniversary celebration, or a meal with a couple of friends will also determine the extent of the decision making.

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Categories that Effect the Consumer Buying Decision Process

A consumer, making a purchase decision will be affected by the following three factors: 1. Personal
2. Psychological 3. Social

The marketer must be aware of these factors in order to develop an appropriate MM for its target market.
Wants are unlimited and the resources to satisfy these wants are limited. So the consumers think rationally before buying any product. Buying a toothpaste is totally different from buying a luxury car. The more expensive the good is the more information is required by the consumer. There are four types of consumer buying behavior on the basis of buyer involvement while purchasing any product.

High involvement:- the term means when the consumer is highly involved while buying a product. Generally this situation happens in case of expensive or luxuries goods. Like while buying a diamond necklace a consumer is highly involved. Low involvement:- this term means when the consumer is not highly involved while buying a product. It happens in case of low price goods. Like while buying toothpaste a consumer is not highly involved. Significant differences between brands:- it means when there are significant differences between brands. Few differences between brands:- it means when there are very little differences between brands. 19

1)

Complex buying behavior:- when the consumer is highly involved in the buying and

there is significant differences between brands then it is called complex buying behavior. So in this case the consumer must collect proper information about the product features and the marketer must provide detailed information regarding the product attributes. For eg. Consumer while buying amotor cycle is highly involved in the purchase and has the knowledge about significant differences between brands. 2) Variety seeking behavior:- in this case consumer involvement is low while buying the

product but there are significant differences between brands. Consumers generally buy different products not due to dissatisfaction from the earlier product but due to seek variety. Like every time they buy differentwashing detergent just for variety. So it is the duty of the marketer to encourage the consumer to buy the product by offering them discounts, free samples and by advertising the product a lot. 3) Dissonance buying behavior:- here consumer is highly involved in the purchase but there

are few differences between brands. Like consumer while buying a floor tiles buy them quickly as there are few differences between brands. 4) Habitual buying behavior:- in this case there is low involvement of the consumer and

there are few differences between brands. The consumer buys the product quickly. For eg. Toothpaste. These are the types of consumer buying behavior.

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CHAPTER 3 :
ANALYSIS THE INDUSTRY UNDER STUDY

21

INDUSTRY PROFILE:-

1.1 Introduction of Automobile industry:The automotive industry design, develop, manufacturer, market and sales the worlds motor vehicles. In 2008-09 more the 70 million motor vehicle including cars and commercial vehicles were produced world wide.

In the 2008-09 the automobile industry produced over the 70 million vehicle, and employed over the 9 million people and represented over 5% of world total manufacturing employment. In 2008-09, the global vehicle registrations reach nearly 901 million vehicle.

The largest market of Europe is the 35% North America 32.6% Asia is the 23.8% South Africa 4.6% The middle east and Africa 3.6%

The fastest growing market for automobiles are china, India, Russia, and brazil. In 2008 with rapidly rising oil prices, industries such as the automotive industries are experiencing a combination of pricing pressures fro row material cost and change in consumer buying habit. The industry is also facing to increase external competition from the public transport sector as the consumer re-evaluate their private vehicle usage.

22

In the automobile industry there are a many players as the Hero Honda motor limited, Bajaj auto limited, TVS motor company limited. The other players of the two wheeler industry as the kinetic motor company limited, kinetic engineering limited, LML, Yamaha motors India limited, Majestic Auto limited, Royal Enfield, and Hero Honda motorcycle and scooter private limited. The automotive sector is one of the key segments of the economy having extensive forward and backward linkages with other key segments of the economy. It contributes about 4 per cent in India's Gross Domestic Product(GDP) and 5 per cent in India's industrial production. This sector has generated about 4.5lakh of direct employment and about one crore of indirect. India holds huge potential in the automobile sector including the automobile component sector owing to its technological, cost and manpower advantage. India has a well developed ,globally competitive Auto Ancillary Industry and established automobile testing and R&D centers. India enjoys natural advantage and is among the lowest cost producers of steel in the world.

HISTORY OF TWO WHEELER MARKET The history of the two wheelers in India dates back to the year 1955. The 350 cc 'Bullet' manufactured by the Royal Enfield Company of United Kingdom was the first batch of motorcycles in India. Enfield Bullet had a close competition with another sturdy bikenamed Rajdoot. The segment of motorcycles in India went through atremendous change in the two wheeler market.

23

 The main cause of the growth in the Two wheelers in Indiasegment is the fuel efficient 4 stroke engine. The first scooters in India were the Lambretta modelsmanufactured by the Italian Innocenti Company in 1975. Very effective in the urban set-up, as they could cleverly tacklethe congested roads and streets. The company sold the enterprise to the Government of India in1975 and the Scooters India Limited was established. This company introduced its first product known as the Vijai Super. New companies emerged such as Bajaj Auto, LMLVespa(now changed to LML) and the public was offered with a wide array of options. Bajaj Chetak, till today it remains one of the most successful brand to come out of the Bajaj stable. Today newer models of two-wheeler are entering the market everyday, slowly pushing these names down the memory lane. However names like Chetak, Rajdoot and Bullet will alwaysfind a mention in the history of two-wheelers in the country.

24

There are a various models of the different companies as the following

Hero Honda: CD 100 Hero Honda Sleek Splendor Hero Honda Street CBZ Passion Ambition CD Down Splendor plus Passion plus Karizma CBZ star(*) Ambition 135 Super splendor CD Deluxe Glamour Achiever

TVS: TVS Centra TVS Fiero 25

 Bajaj:

TVS S Apache TVS Victor TVS star TVS scooty pep

Bajaj avenger Bajaj CT 100 Bajaj platina Bajaj Discover dtsi Bajaj pulsar dtsi Bajaj wave Bajaj wind 125

Yamaha: Yamaha G5 Yamaha cruxs Yamaha gladiator

Kinetic: Kinetic Aquila Kinetic boss Kinetic challenger Kinetic comet Kinetic GF

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1.3 Automobile industry in India

The Indian automobile Industry consist of five segment: commercial vehicles, multi utility vehicles, and passenger cars, two-wheeler, three wheeler, tractors. India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. Under the regulated regime, foreign companies were not allowed to operate in India.

The automobile industry in India the tenth largest in the world with the annual production of the approximately 2 million unit expected to become one of the major global automotive industries in coming year. A number of the domestic companies produce to the automobile industry in india and growing presence of multi national investment to has increase in over all growth.

De-licensing in 1991 has put the Indian automobile industry on a new growth track, attracting foreign auto gains to setup the production facilities in the country to take advantage of various benefit it's offers. this took that Indian automobile production from the 5.3 million unit in the 2001-02 to 10.8 million unit in 2007-08. the other reason is to be attracting global auto

27

manufacture to Indian are the country's large class population, growing earning power, strong technology capability and availability of trained manpower at competitive price. The Indian automotive industry consists of five segments: commercialvehicles; multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic marketand 453,591 units exported during the first nine months of FY2005(9MFY2005), the industry (excluding tractors) marked a growth of 17%over the corresponding previous. The two-wheeler sales have witnesseda spectacular growth trend since the mid nineties.

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 favour 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 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 demand. 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. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration of twowheelers in target population has increased significantly during last one decade especially in urban areas. However rural areas and smaller towns still remains considerably underpenetrated 28

market. CARE Research foresees rising income levels combined with increase in finance penetration in rural areas and smaller towns, the demand for two-wheelers will grow swiftly in short to medium term period. Sighting this huge growth opportunity two-wheeler manufacturers have started launching models catering to the needs of rural demand.

CARE Research has developed a statistical model that attempts to forecast the domestic two wheeler sales on the basis of ownership cost and the target population that includes young populace that can afford but do not own a two wheeler. Other qualitative factors like macroeconomic outlook, consumer confidence, willingness of vehicle financers to finance TWs, etc. have also been quantitatively built in demand forecasting model.

Factors for the growth of two wheelers in India Difference between two-wheeler and passenger car prices. The average family income has increased. The finance have become easier to access The reduction in taxes and duties Introduction of international standards in India The economic and fuel-efficient engines The teenager and the youth using more and moremotorcycles.

Indian two-wheeler industry: Rural India to drive industry's growth

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 29

preferences have changed in favour 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 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 demand. 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. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration of twowheelers in target population has increased significantly during last one decade especially in urban areas.

However rural areas and smaller towns still remains considerably underpenetrated market. The authors foresee rising income levels combined with increase in finance penetration in rural areas and smaller towns, the demand for two-wheelers will grow swiftly in short to medium term period. Sighting this huge growth opportunity two-wheeler manufacturers have started launching models catering to the needs of rural demand.

The authors have developed a statistical model that attempts to forecast the domestic two wheeler sales on the basis of ownership cost and the target population that includes young populace that can afford but do not own a two wheeler. Other qualitative factors like macro-

30

economic outlook, consumer confidence, willingness of vehicle financers to finance TWs, etc. have also been quantitatively built in demand forecasting model.

After a strong recovery industry posted in FY10, which was continued even in first quarter of FY10, the authors foresee the high growth levels witnessed currently would stabilise in next 2-3 year period. Nevertheless the industry would register a healthy growth during FY10-FY15 period. According to this report, rural India would drive the growth, whereas the opportunity in urban India, especially bigger cities, would become limited in days to come.

In FY10, almost all the manufacturers reported healthy rise in their top-line, driven by growth in both volumes and realisation. Operating margins also observed improvement owing to drop in raw material prices. However, the authors foresee that industry would face challenge of rising input cost and rising competition levels which would strain margins considerably in short to medium term period.

The domestic two-wheeler industry has been able to recover strongly from the economic crises of FY08. Rising income levels, ease in liquidity scenario and return of consumer confidence owing to revival in employment rates were the key drivers for this growth. The authors foresee the short to medium term outlook of the industry will remain healthy, majorly driven by rising demand from rural areas and smaller towns.

The Indian Two-Wheeler Industry' gives valuable insight of the industry encompassing its evolution in India, its characteristics, demand drivers, Government regulations, commentary on industry players and competition and the trends in domestic sales and exports. The trends are 31

analysed in depth for various vehicle segments, namely motorcycles, scooters, mopeds and electric two-wheelers, further sub-classified based on the engine capacity. Various segments and sub-segments are appropriately associated with the relevant products and companies for enhancing the understanding of the competitive scenario in the industry. The cost analysis presented in the report will help the reader identify the critical cost items and their trends. The company section in the report provides detailed profiles of the top three players in the industry, including information on their financial and operational parameters.

The report presents forecasts of domestic as well as export sales for each of the next five years till FY15, separately for all the segments. The authors have developed a robust model for forecasting domestic sales. It takes into account the cost of owning a two-wheeler, age demographics and income distribution of the populace. It also attempts to quantitatively adjust for qualitative factors like current economic scenario and outlook, consumer confidence level and persuasive sales techniques of dealers and vehicle financers.

Automobile, being the leader in product and process technologies of the manufacturing sector, has been recognized as one of the major drivers of economic growth. The Indian economy has been growing around 8% for the past few years. This growth has enabled an overall change in the social status of the Indian population. Additionally, every year, many rural areas and Tier-III cities are progressing to a higher status, opening immense growth opportunities for the twowheeler industry.

The two-wheeler market has emerged as the most vibrant and transforming segment of the overall Indian automobile industry, witnessing an unprecedented growth. Rising rural demand 32

and fuel efficiency are among the major factors boosting the growth in the market. Despite the economic slowdown, the Indian automobile industry has been performing consistently well, compared to other major markets of the world. The Indian two-wheeler market possesses a significant potential, and is anticipated to grow at a CAGR of around 11% during FY 2011- 2015 to reach 17.8 Million Units by FY 2015-end.

Our report has studied the Indian two-wheeler market from various perspectives. It entails a detailed analysis of the market in terms of segments. Each section sufficiently explains the current and future market trends, and the ongoing developments in the Indian two-wheeler market. Our research also foresees immense opportunities for various international and domestic players in this segment.

The report has also considered the preferences by gender, and income levels as part of macroeconomic indicators to understand this market of India, which is one of the worlds leading twowheeler exporters.

Our report, Two Wheeler Market in India, has comprehensively analyzed the emerging trends, like reviving of scooter segment and shooting demand for executive and premium segment bikes in two wheeler markets, which are expected to prevail in near future. Our proposition in this report is likely to facilitate clients in understanding the present and future outlook of the two wheeler market and developments in the country. Further, we have also evaluated various government regulations and initiatives that will provide the prerequisite boost to the two wheeler market in India, and facilitate cutting-edge market intelligence to intending clients while making investment decisions. 33

Indian two-wheeler industry: Low dependence on financing to keep industry afloat :

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 favour 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 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 demand. 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. Furthermore, with increasing women working population, changing social philosophy and broad-mindedness, the penetration of twowheelers in target population has increased significantly during last one decade especially in urban areas. However rural areas and smaller towns still remains considerably underpenetrated market. CARE Research foresees rising income levels combined with increase in finance penetration in rural areas and smaller towns, the demand for two-wheelers will grow swiftly in short to medium term period. Sighting this huge growth opportunity two-wheeler manufacturers have started launching models catering to the needs of rural demand.

34

CARE Research has developed a statistical model that attempts to forecast the domestic two wheeler sales on the basis of ownership cost and the target population that includes young populace that can afford but do not own a two wheeler. Other qualitative factors like macroeconomic outlook, consumer confidence, willingness of vehicle financers to finance TWs, etc. have also been quantitatively built in demand forecasting model.

After registering strong growth in FY10 and FY11, TW industry continues to witness high growth in H1FY12. CARE Research expects the momentum to continue in the future, however, marginal impact of economic slowdown will be felt in the short term period. Nonetheless the industry would register a healthy growth during FY11-FY16 period. According to CARE Research, lower dependence on finance and considerably lesser TW penetration in rural markets coupled with rising export demand will drive the industry growth.

In FY11, almost all the manufacturers reported healthy rise in their top-line, driven by growth in both volumes and realisation. However, operating margins of the industry remained under pressure to some extent on account of sharp rise in prices of key inputs. CARE Research foresees that industry will continue to face margin pressure on the back of firm key input prices combined with increase in selling and distribution expenses.

35

1.4 TWO-WHEELER INDUSTRIES

India is the second largest two-wheeler manufacture in the world and largest manufacture in the in the world. Indian two-wheeler segment include in a range of vehicle such as the scotergeared and unguarded, moped and motorcycle. In india there are a 3 scooter manufactures, and 3 moped manufacture, Hero Honda, TVS, Bajaj Auto, Suzuki, Yamaha, etc are leading manufacturer. They have also dominated the global area after piaggo. production of the automobile industry during the financial year 2008-2009 is 17.22 million.

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in thecountry in 9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around 77.5% of thetotal vehicles sold in the period mentioned.

The three main product segments in the two-wheeler category arescooters, motorcycles and mopeds. However, in response to evolvingdemographics and various other factors, other subsegments emerged,viz. scooterettes, gearless scooters, and 4-stroke scooters. While the firsttwo emerged as a response to demographic changes, the introduction of 4-stroke scooters has followed the imposition of stringent pollutioncontrol norms in the early 2000. Besides, these prominent sub-segments, product groups within these sub-segments have gained importance in therecent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc.

36

OUT LOOK OF TWO-WHEELER INDUSTRY -

After independence, Bajaj Auto Ltd. had an undisputed leadership over the market. The industry registered compounded growth rate of 12% during the seventies. In phase two, Japanese companies were tying up with domestic players and new models were introduced. The growth rate for the two-wheeler industry this phase stood at 16.4%. This phase extended till early nineties. In phase three, sales started picking up in 1994. In 1995, the industry produced about one million scooters. 6 lakh motorcycles and 5 lakh mopeds. All most all the companies were going in for expansion.The manufacturers of two-wheelers distinguish their products on the basis of power, fuel efficiency, and maintenance requirement, easy in handling, style & price. India is the third largest producer of two wheelers after Japan and China and the second largest consumer after China. Despite the poor road infrastructure and the meager purchasing power, the two-wheeler industry in India has enjoyed a wider appeal with the masses as a means of private transport. Two-wheelers are usually classified into three types: they are Scooters, Motorcycles, Mopeds and Electric two wheeler. The motorcycle industry, has reached the state of a competitive market with a few companies producing a good range of products and present thrust is upon innovations and high efficiencies. The market has steadily moved from a sellers market to a buyers market. The companies are responding quickly to changing customer demands to stay in the business. Products are introducing various models or upgrading existing models to cater to the different segment and there is an emphasis on increasing advertisement expenditure and better service through upgraded service centers. The motorcycle segment within the two-wheeler industry showed a distinct behaviour, compared to the overall sales of two-wheelers. While the total two-wheelers 37

sold have nearly doubled from 1991-92 to 1996-97, the sales of motorcycles have more than doubled, indicating the gradual preference of motorcycle by the consumer.

Production of the two-wheeler automobile industry

Year

Production (in units) of two wheelers ( in million)

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

6.52 7.60 10.78 13.58 17.22

Sales of the two-wheeler bike in the Indian market

Year

Total sales (in units) of two wheelers (in million)

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

6.20 7.05 11.42 7.86 12.16

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Export of the two-wheeler bike in the Indian market

Year

Total exports (in units) of two wheelers (in lakhs)

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

3,66,407 5,13,256 9,25,464 11,20,103 13,18,308

39

BIG PLAYERS IN THE BIKE SEGMENT

40

Bajaj Auto Limited is one of the pioneering companies in the two wheeler industry. Bajaj Auto has a vast network of about 1500 service centers and 500 dealers all over India. It has 3 manufacturing plants located at Akurdi, Waluj and Chakan in Maharashtra. The company's technology partner is Kawasaki Heavy Industries, Japan. The company exports to ASEAN region, South America and Africa.

MILESTONES
1945 - Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited. 1948 - Sales in India commence by importing two- and threewheelers. 1959 - Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers. 1960 - Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. 1970 - Bajaj Auto rolls out its 100,000th vehicle. 1971- The three-wheeler goods carrier is introduced. 1972 - The Bajaj Chetak is introduced. 1975 - BAL & Maharashtra Scooters Ltd. joint venture. 41

1976 - The Bajaj Super is introduced. 1977 - The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year. 1981 - The Bajaj M-50 is introduced 1984 - Foundation stone laid for the new Plant at Waluj, Aurangabad. 1986 - The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year. 1990 - The Bajaj Sunny is introduced 1991 - The Kawasaki Bajaj 4S Champion is introduced. 1998 - Kawasaki Bajaj Caliber rolls out of Waluj. 2001- Bajaj Auto launches its latest offering in the premium bike segment Pulsar. The Eliminator is launched. 2003- Pulsar DTS-i is launched. 2004 - Bajaj unveils new brand identity, new symbol, logo and brand line 2007 - 200 cc Pulsar DTS-i launched

42

Bajaj Pulsar DTSi 150cc

Generation next technology included in the package of the equipments of this high flying bike is the revolutionary digital biking. Digital biking is the combination of various advanced systems like Digital Twin Spark ignition (DTSi). Its highly masculine outlook with sporty, dashing structure gives the complete satisfaction of dare riding. Bajaj Pulsar enables its rider to tackle the situation of overcrowded street due to the presence of 17" alloy wheels with 1330 mm wheelbase. Its comfort statement includes front telescopic suspension, Nitro X - Nitrogen assisted rear gas shockers with triple rated spring. Due to these comfort features, this bike is highly accommodative in any terrain. Feeling of proper riding is provided by different high end features like improved clutch, cylinder head with Roller Rocker Arms, optimized intake and exhaust systems & new valve timings. Its advanced Exhaust TEC (Torque Expansion Chamber) technology ensures the higher performance at lower rpm.

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TVS Motor Company is part of Sundaram Clayton group in TVS group of companies. TVS Motor Company is the main flag ship company of Sundaram Clayton group. TVS Motors is the third largest two-wheeler manufacturer in Indian and ranks among the top ten globally. It is the first company in the world to be honored with the Deming Prize for Total Quality Management. The Company was the first in India to launch 2-seater 50cc moped and 100 cc Indo-Japanese Motorcycles. At Present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and TVS Fiero are the popular bikes in Indian Market. TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-wheeler manufacturer in India. The company manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. The company is having their manufacturing plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh. They are also having one unit located at Indonesia. Their subsidiaries include Sundaram Auto Components Ltd, TVS Motor Company (Europe) BV, TVS Motor (Singapore) Pte Ltd, PT TVS Motor Company, Indonesia, TVS Energy Ltd and TVS Housing Ltd. TVS Motor Company Ltd is a part of Sundaram Clayton group in TVS group of companies. In the year 1979, Sundaram-Clayton Ltd started Moped Division at Hosur to manufacture TVS 50 mopeds. In the year 1982, the company entered into a technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan and in the year 1985, they incorporated a new company Lakshmi Auto Components Pvt Ltd for the 44

manufacture of critical engines and transmission parts. In the year 1986, the company acquired the assets of the moped division from Sundaram Clayton Ltd. Also, the name of the company was changed from Indo Suzuki Motorcycles Ltd to TVS Suzuki Ltd. In the year 1992, they launched two modes of motor cycles namely, Samurai and Shogun and in the year 1993, they launched TVS Scooty. During 1999-2000, TVS Suzuki Ltd was amalgamated with Sundaram Auto Engineers Ltd, an unlisted group company which was incorporated in the year 1992. As per the scheme, all the assets and liabilities of erstwhile TVS Suzuki Ltd together with all obligations and contingent liabilities were vested in Sundaram Auto Engineers (India) Ltd with effect from April 22, 1999. This merged entity was later renamed TVS Suzuki Ltd. The TVS group and Suzuki Motor Corporation parted ways from their 15-year-old joint venture on September 27, 2001. The shares held by the Suzuki Motor Corporation were acquired by Anusha Investments Ltd, a wholly owned subsidiary of Sundaram-Clayton Ltd for Rs 9 crore. Thus, the company became a subsidiary of Sundaram-Clayton Ltd with effect from November 15, 2001. Since, Suzuki Motor Corporation ceased to be a shareholder of the company, the company cannot use the word 'Suzuki' as the part of their name and hence the name of the company was changed to TVS Motor Company Ltd. During the year 2002-03, the new stylish TVS Scooty Pep and the upgraded version of Fiero was launched in the market. In April 1, 2003, the subsidiary company namely, Lakshmi Auto Components Ltd acquired the entire paid up capital of Sundaram Auto Components Ltd. Consequently, Sundaram Auto Components Ltd became a subsidiary company with effect from April 1, 2003. In October 2003, the company entered into a scheme of arrangement with Lakshmi Auto Components Ltd and Sundaram Auto Components Ltd. As per the scheme, all the assets and liabilities of the rubber and plastic businesses of Lakshmi Auto Components Ltd were transferred to Sundaram Auto Components Ltd on slump sale basis on April 1, 2003 for a consideration of 12.25 crores. The remaining business of Lakshmi Auto 45

Components Ltd, namely engine components division together with their investments in other bodies corporate was transferred to the company with effect from April 2, 2003. During the year 2003-04, the company launched new products such as TVS Centra, New Victor GL, Fiero F2 & Fx and Scooty Pep. During the year 2004-05, they launched new products such as TVS Star, New Victor GLX, New Victor GX and Scooty Pep 'Splash' series. During the year 2005-06, the company entered into a joint venture with Columbian party for exploring opportunities in Columbian market with an equity investment of Rs 5 million. The company incorporated TVS Motor Company (Europe) B V in Netherlands as a wholly owned subsidiary of the company with an investment of Rs 91.63 crore. During the year, TVS Motor Singapore Pte Ltd, Singapore became a wholly owned subsidiary of the company with an investment of Rs 30.51 crore. PT TVS Motor Company Indonesia was incorporated in Indonesia to manufacture motorcycles and parts with an investment of USD 27.60 million and became subsidiary of the company in view of it being the subsidiary of TVS Motor Company (Europe) B V, which holds 75% of the share capital. The remaining 25% was held by TVS Motor Singapore Pte Ltd. PT TVS Motor Company Indonesia has acquired lands in Indonesia for setting up a facility for manufacturing two wheelers. During the year 2006-07, the company has established a new plant in Himachal Pradesh with an annual production capacity of 4,00,000 units scalable to 6,00,000 units. PT TVS Motor Company Indonesia, a subsidiary of the company, established a manufacturing facility at Karawang, near Jakarta in Indonesia with production capacity of 3 lakh vehicles per annum. During the year, the company launched multiple new products and variants such as, StaR City ES, StaR Sport, Scooty Teenz and 99 Colors on Scooty PEP. During the year 2007-08, the company commenced commercial production from its Nalagarh Plant located in Himachal Pradesh. They commenced their commercial production from their state-of-the art plant located at Karawang in Indonesia and launched TVS Neo, which is exclusively developed for the 46

Indonesian market. During the year, the company launched various new products and variants such as TVS Flame, Apache RTR, StaR Sport, StaR City 110 cc, Scooty TeenZ Electric, TVS Tru4 Oil. In March 2008, the company launched their three wheeler, TVS King in two variants, namely two stroke petrol and two stroke LPG. The company won the Team Tech 2007 Award of Excellence for Integrated use of Advanced Computer Aided Engineering Technologies in product development. They also won the prestigious SAP ACE 2007 Awards for Customer Excellence in the Most Innovative Netweaver Category for several SAP implementations that are put in place. In June 2008, the company entered into a contract manufacturing arrangement with Mahabharat Motors Manufacturing Pvt Ltd whereby TVS motor cycles will be manufactured at the latter's two-wheeler manufacturing facility that is located on the outskirts of Kolkata. TVS would help Mahabharat Motors to set up the factory and provides engineering support to them. The production would commence from June 2009. During the year 2008-09, the company launched Scooty Streak, a tough and trendy variant of Scooty Pep+ and Apache RTR RD, premium segment motorcycle. Also, they launched their three-wheeler, TVS King in six states. In June 2009, T V Sundram Iyengar & Sons Ltd and their subsidiaries acquired the holding of foreign collaborators, Clayton Dewandre Holdings Ltd in Sundaram-Clayton Ltd. Thus, Sundaram-Clayton Ltd became a subsidiary of T V Sundram Iyengar & Sons Ltd. Consequent to this acquisition, the company also became the subsidiary of TVS with effect from June 3, 2009. During the year 2009-10, the company launched TVS JIVE and TVS Wego in the market. They also launched a four stroke three-wheeler with superior features. They commenced export of TVS Apache to Brazil. Also, they developed a pan India presence in three-wheelers. In December 2009, the company acquired the entire shareholding of TVS Energy Ltd. Thus, TVS Energy became a wholly owned subsidiary of the company. In June 2010, they acquired the entire paid up capital of TVS Housing Ltd and thus, TVS Housing Ltd became a wholly owned 47

subsidiary of the company. In October 2010, the company won the SAP ACE Award for Consumer Excellence 2010 in 'Best Run Award in Automotive' category. They also won the Silver EDGE award from Information Week, a leading IT magazine for in house design and development of Data Acquisition System for improving shop floor productivity. Information Week annually recognize enterprises driving growth and excellence through IT. In November 2010, the company launched TVS TRU4 Premium, a semi-synthetic 4T Engine Oil. In February 2011, Indian Bank signed an MoU with the company for financing three wheelers manufactured by the company. In March 2011, the company introduced ABS (Anti-lock Braking System) in their premium segment motorcycle TVS Apache RTR 180, giving the bike formidable stopping power and superior braking control that compliments its high performance capability.

MILESTONES

Indias first 2 seater 50cc Moped TVS 50, launched in Aug 1980. In 1982 SCL established Joint Venture with Suzuki Motor Corporation.

In 1994 the company entered the market segment of scooters with introduction of Scooty 2S, which was totally an indigenous design.

Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in Dec 1996.

Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997. Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; Indias first fully indigenously designed and manufactured motorcycle.

48

In 2000 the first 4 stroke motorcycle was launched called Fiero Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough terrain Launched TVS Apache in Nov 2005. It finally went on to be the Bike of the Year for 2006, winning 6 prestigious awards

TVS Apache
TVS Apache with its shapely streamlined tank and engine design is really an eye -stopper. Its smooth and flawless finish makes this bike desirable to the market. Its tough but light 6 spoke black alloy wheels are really supportive for better control and excellent riding of this two wheeler. Its uniquely designed head lamp has become one of the best head turner in the market of two wheelers. Its 240 mm disc brake is helpful in stopping one in any sudden situation to avoid accident. Its all gear start and low friction engine with RCF technology are the key factor of better efficiency of this bike. It is further equipped with various upgraded technology like monotube inverted gas filled shocks, IDI lean burn, iE surge (intake and exhaust resonator), synchro stiff chassis etc. for the proper safety and security of the persons seating on the bike.

49

Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. In September 2004, Honda Motorcycle and Scooters India Limited (HMSI), the wholly owned subsidiary of the Japan-based Honda Motor Company Limited (HMCL), launched its first 150cc motorcycle named 'Unicorn.' Priced at Rs. 50,043 (ex-showroom price, Delhi), Unicorn had a four stroke 13.3 bhp engine with five gears. The new bike was available in five colours and was designed to achieve a speed of 0 to 60 kmph in five seconds. Unicorn was promoted with the caption "Be a wing rider." (Refer Exhibit I for a visual of Unicorn). Targeted at youth, Unicorn looked sportier than all the existing motorcycles in the premium segment and was pitted against Bajaj Pulsar, the leader with 75 percent market share in that segment. Honda Motorcycle & Scooter India Pvt. Ltd was founded on August 20, 1999 at Manesar near Gurgaon in Haryana. The foundation stone for the Honda factory was laid on December 14, 1999 and the factory was completed in January 2001.

The company initially ventured into scooters as its joint venture agreement with the Hero Group precluded its entry into the motorcycle segment for five years. The company set

50

benchmarks in the Indian scooter industry with the launch of its gearless scooter Honda Activa. Honda Dio, launched after it, was a slightly upgraded and trendier version of Activa. Honda Eterno was another addition to the repertoire of Honda scooters. First bike launched by HMSI was Honda Unicorn. It was followed by Honda Shine. All the products launched by HMSI were runaway hits in the market.

HMSI factory at Manesar is built on 52 acres of land. Its initial production capacity was 100,000 scooters per year, which has now been upgraded to 6,00,000 scooters. The bike production capacity is 10,00,000 per annum. Initial investment behind the factory was Rs. 215 crores and has now grown to 800 crores. Honda produces a range of motorcycles, ranging from the 50 cubic centimeters class to the 1,800 cubic centimeters class in cylinder displacement. Hondas motorcycles use internal combustion engines developed by Honda that are air or water-cooled, two or four cycle, and single, two, four or six cylinder. Hondas motorcycle line consists of sports (including trial and moto-cross racing), business and commuter models. Honda has also produced all-terrain vehicles (ATVs), personal watercraft (PWC) and multi-utility vehicles (MUVs). Motorcycles are produced by the Company in Japan at the Kumamoto factory. Hondas motorcycles are also produced by subsidiaries in countries worldwide, including Italy, Thailand, Vietnam, the Philippines, India, Brazil and Argentina. Hondas unit sales of motorcycles, ATVs and PWC totaled 9,639 thousand units during the fiscal year ended March 31, 2010 (fiscal 2010).

51

Honda Unicorn
This bike with powerful 4 stroke 150 cc engine delivering output of 13.3 bhp engine clubbed with many other high end equipments like Constant Volume (CV) Carburetor, pulse exhaust system, offset crank and 2 way air jacket. Its multi mapping CDI, roller rocker arm, 5 speed gears, tumble free combustion etc. determine the performance as well as its aesthetic value. Its aerodynamic body lining, sporty and sleek design, appealing tail lamp and excellent

body graphics etc are enhancing its style statement day by day. Unique shock absorbing mono suspension prevents discomfort due to the sudden jerk caused by uneven road. Its flexible seating arrangement, ample foot space gives the total comfort of journey. Fully equipped with various cutting edge technologies, this bike comes with hole plugging mechanism, tuff up tube, easy primary kick etc.

HONDA CRF 250M

Supermoto style and attitude, combined with tough, accessible performance credentials make the new CRF250M ideal for the young rider looking for something different.

Based on the popular dual-purpose CRF250L, with revised suspension, uprated front brake and 17-inch wheels with wider road tyres, the CRF250M adds another A2 licence-friendly 52

machine to Hondas line-up. Its free revving single-cylinder engine provides crisp, instant response thanks to revised gearing and punchy power and torque delivery, whilst also offering impressive fuel economy. Its due to arrive in UK dealerships in early summer 2013, priced at 4099 OTR and will be sure to add an extra dimension to Hondas unparalleled range of accessible, fun and reliable machines.

53

HONDA NC700S :
Honda today announces the introduction of its uniquely comprehensive 2012 model line-up, ahead of the opening of the EICMA show in Milan on Tuesday November 8th. The new models cover a huge range of rider needs and styles. Highlights include:

The Crosstourer - an adventure sports tourer which takes Honda's unique V4 heritage in a new direction. Unveiled as a concept model in 2010, the Crosstourers 1200cc engine, adventure styling, long suspension travel, upright riding position, Traction Control System, Combined ABS and optional Dual Clutch Transmission make it a formidable all-round package.

The Integra: a new machine offering the stability and dynamic ride of a motorcycle, with the protection, comfort and look of a large scooter, plus Dual Clutch Transmission and an allnew highly fuel efficient, high torque 670cc engine.

Two new fun and affordable mid-sized machines the NC700X and NC700S. These machines offer easy fun handling in a crossover and naked styling respectively for both commuting and weekend use.

The expansion of Hondas range of Dual Clutch Transmission models to five machines: the VFR1200F (upgraded for 2012), Crosstourer, Integra (the first model to have the system as standard), NC700X and NC700S. First released on sale in 2010 for the VFR1200F, Dual Clutch Transmission offers seamless shifting in both its manual and its two automatic modes.

Three stylish and affordable machines offering fun mobility: the Vision 50, Hondas first all-new 50cc model for Europe for nearly ten years, which complements the 110cc Vision released earlier this year, plus the Wave 110i, whose lineage can be traced back to the 60million plus selling Super Cub. 54

Upgrades to two genuinely iconic flagship machines the GL1800 Gold Wing luxury tourer, boasting a 36 year history, and the 20th anniversary edition of the CBR1000RR Fireblade super sports classic. In addition to a total of 7 new models (Integra, NC700X, NC700S, Crosstourer, Vision 50, Vision, and Wave110i), 6 upgraded machines (CBR1000RR Fireblade, GL1800 Gold Wing, VFR1200F, CFR450R, CRF250R and CRF150R), a total of 16 models will be offered with new colours.

55

HERO HONDA :

56

INTRODUCTION OF HERO HONDA Hero Honda Motors Limited was established in January 19,1984. It started out, as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two-wheeler Company. Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Hero Honda is currently the worlds largest motorcycle manufacturer thanks to its fuel efficient, high quality products made in collaboration with Honda motorcycles, Japan. Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of bicycle components, Hero has today grown into a multi-unit, multi-product, geographically diversified group of companies. Like every success story, Hero's saga contains an element of spirit and enterprise of achievement through grit and determination, coupled with vision and meticulous planning. The Hero Group began with a simple philosophy:

57

to provide excellent transportation to the common man, at a price he could easily afford. It is this spirit, which drives Hero even today; the dream of providing total satisfaction in all its spheres of activity. To consumers, in excellent products at an affordable price; to employees, in a fine quality of life and to business associates, in a total sense of belonging. A thorough understanding of fast-changing consumer behaviour, new market segments and product opportunities, and a marketing mix sensitive to changing customer needs, form the core of Hero's marketing strategy and philosophy. Keeping the wheels of progress turning are the individual companies of the Hero Group. Each an independent profit centre. Each a success story in its own right. The two wheeler division of the Hero Group has already networked more than 3,500 dealer outlets, each with its complement of trained mechanics and workers.

Established in 1984 joint venture. Largest Manufacturer of two wheeler in india. Manufacturing unit in Dehradoon and Gurgaon.

PRODUCT SEGMENTATION
Up to 100 cc : CD Dawn, CD Deluxe, Spelndor plus, splendor NXG, Passion 100 to 135 cc : Glamour, Super Splendor, Honda pleasure. More than 150 cc : Achievers, CBZ extreme, Hunk, Karizma.

58

BAJAJ

59

INTRODUCTION OF BAJAJ AUTO LIMITED

It is one of India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. Today, Bajaj Auto Ltd (BAL), the largest two and three wheeler manufacturer in the country, has a dominating 40% market share in scooters with 18.5% in unguarded scooters, 25.2% in motor cycles, 8.3% in mopeds and a leading 78% market share in three-wheelers in FY2001. Bajaj Auto has been viewed as a scooter major but with the change in the structure of demand for 2-wheelers the company has tried to make its presence felt in this key market by steadily ramping up motorcycle capacities, by introducing new models and variants and pushing up marketing and sales. However the company is well behind Hero Honda in the motorcycle segment and No.2 player in mopeds/ scooter segment after TVS Suzuki. The company has a wide array of models both in the two-stroke and four-stroke configurations. However, with the implementation of the latest emission norms, it is slowly moving away from two-stroke vehicles and converting them to four-stroke ones. The company is all set to increase its margins to double digits through concerted cost cutting, value engineering, gains from Total Productive Maintenance (TPM) and VRS. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined Drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01.The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. This has been replaced by 4-stroke 60

motorcycles, which do not incur the additional cost of such converters and fierce competition led to a fall in price of certain models Bajaj Auto Ltd ( BAL ) has been viewed as a scooter major . Nevertheless, in the past five years the company recognized the important role of motorcycles in its portfolio. The scooter market is predominantly located in the Northern and Eastern India and the rationalization of sales taxes to a uniform rate of 12% pushed the price of scooters by 6-8% without offering any perceived value advantage to the customer. The company posted total 2wheeler sales of Rs1.05 million in 2000-01 as against Rs1.24 million in 1999-00. The motorcycle sales contributed to almost 50% of the total sales volumes accompanied by the decline in geared scooter sales, which contributed, to only 33% of sales volumes. The company has been introducing models in the middle end Rs.36, 000 Rs. 48,000 and high end segments viz; Rs. 48,000 and above but has found difficult to market such models in competition to Hero Honda models in the similar price category. However BAL is on its way to recapture the highly differentiated product market by becoming a flexible and market driven supplier of various models of two and three wheelers at specific price points. BAL has performed fairly in the current fiscal 2001-02 with the Net Sales going up by 3.06% to Rs19720 million HY ended September 2001 from Rs19133.3 mn in the corresponding period previous year. The total expenditure has gone up by 5.3% with the material cost accounting for the major increase. The company has posted a growth of 69% in PBT and the Net Profit has increased by 55% to Rs2644.7 mn from Rs1701.5 mn in the corresponding period last year. The Net Profit Margin has also improved by almost 50.7% from the half year ending FY2000-01. The employee cost has fallen but the company will be charging an equal expenditure of Rs 22.6 mn over the three quarters of the current fiscal amounting to Rs 67.8 mn as the VRS expenditure incurred in June 2001.

BAJAJ DISCOVER :
61

The Bajaj Discover is a motorcycle brand by Bajaj Auto. Currently there are four variants of Discover- Discover 100 DTS-Si,Discover 125 DTS-i,Discover 125ST and Discover 150 DTSi.The bike initially launched in the year 2004 has been a success in the Indian two Wheeler segment since then.[1]

BAJAJ PLATINA :
Bajaj Platina is a 100 cc motorcycle manufactured by Bajaj Auto. The Platina was launched in April 2006 at an ex-showroom price of Rs 35,000[1]and crossed sales of 500,000 units within 62

eight months of its launch.[2] A 125 DTS-Si variant with the same engine as the XCD was introduced in September 2008 with sales of more than 30,000 units per month[3] but subsequently discontinued.

BAJAJ CHETAK :
The Bajaj Chetak was a popular Indian-made motor scooter produced by the Bajaj Auto company.[2] The Chetak is named after Chetak, the legendary horse of Indian warrior Rana Pratap Singh. Originally based on Italian Vespa Sprint, Chetak was an affordable means of transportation for millions of Indian families for decades and is lovingly called Hamara Bajaj (Our Bajaj).

63

BAJAJ PULSER :
New model launched by Bajaj automobiles company.

64

Other Two Wheeler Companies Are :YAMAHA About India Yamaha Motor Pvt. Ltd.
Yamaha Motor Co., Ltd. is a Japan-based manufacturing company. The Company operates in five business segments. The Two-wheel Vehicle segment manufactures and sells motorcycles and bicycles. The Marine segment manufactures and sells outboard engines, water vehicles, sailing boats, fishing boats and Japanese-style boats. The Special Machinery segment provides four-wheel buggies, side-by-side vehicles, snowmobiles, golf carts, power generators and general engines. The Industrial Machinery and Robot segment mainly provides surface mounters. The Others segment provides automobile engines. As of December 31, 2011, the Company had 117 subsidiaries and 26 associated companies. Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 jointventure with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). In 2008, Mitsui & Co., Ltd. entered into an agreement with YMC to become a joint-investor in the motorcycle manufacturing company "India Yamaha Motor Private Limited (IYM)". IYM operates from its state-of-the-art manufacturing units at Surajpur in Uttar Pradesh and Faridabad in Haryana and produces motorcycles for both domestic and export markets. With a strong workforce of more than 2,000 employees, IYM is highly customer-driven and has a countrywide network of over 400 dealers. Presently, its product portfolio includes VMAX (1,679cc), YZF-R1 (998cc), FZ1(998cc), YZF-R15 version 2.0 (150cc), Fazer (153cc), FZ-S

65

(153cc), FZ16 (153cc), SZ-R(153cc), SZ-X (153cc), SS125 (123cc), YBR 125 (123cc), YBR 110 (106cc), Crux (106cc) and Ray(113cc).

YAMAHA R15 (153 cc)

YAMAHA FZ (150 cc)

66

YAMAHA SZ (150 cc)

67

YAMAHA Fazer (100 cc)

YAMAHA ALBA (100 cc)

68

TVS
TVS VICTOR GLX 125

TVS CENTRA (100 cc)

69

 TVS fiero

70

Significance of the study

To know the Basic consumer buying behaviour and the reasons because of which they switch from one company to another. To know about the companys details (profile, Products) This study would help in revealing the type and specific qualities of the bikes offered by the company to their consumers. To study the satisfaction level of consumers who uses bikes. To study the factors influencing consumers to buy 150cc bikes. To study effect of advertisement on the purchasing decision of the consumers

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CHAPTER 4: LITERATURE REVIEW

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LITERATURE REVIEW
Once the problem is formulated, the researcher has to undertake an extensive literature survey related to problem. The literature survey undertaken here includes books and different websites from the internet. Industrialization has brought vast changes in the Automobile Industry, because growth and development of any area requires appropriate transportation facilities. Automobile industry is one of the fastest growing sector in our country. The rapid growth of middle class section is the primary reason for the growth of two wheeler industry. People in rural and semi urban areas are trying to elevate their life style and people in metropolitan cities are completely disappointed with the public transport system. After independence, Bajaj Auto Ltd. had an undisputed leadership over the market. The industry registered compounded growth rate of 12% during the seventies. In phase two, Japanese companies were tying up with domestic players and new models were introduced. The growth rate for the two-wheeler industry this phase stood at 16.4%. This phase extended till early nineties. In phase three, sales started picking up in 1994. In 1995, the industry produced about one million scooters. 6 lakh motorcycles and 5 lakh mopeds. All most all the companies were going in for expansion. The manufacturers of two-wheelers distinguish there products on the basis of power, fuel efficiency, maintenance requirement, easy in handling, style & price. The term consumer behaviour that consumers display in searching for, purchasing, using, 73

evaluating and disposing of products and services that they expect, will satisfy their needs, consumers are highly complex individuals, subjects to a variety of psychological needs apart from their survival needs. Needs and priorities of different consumer segments differ drastically. Present day consumers have wide range of transportation needs, and they take decision on how to spend their available resources such as time, money and effort on the modes and means of transport.

The research project was to know the Customers buying behaviour and customer satisfaction for purchasing of two wheeler bikes on the basis of Price, Fuel efficiency, Brand, Style and comfort name.

Schiffman. G. Leon and kanuk lazare Leslie 1 - Study of the customer behaviour is the study of how individuals make decisions to spend their available resources (Time, Money and Efforts) on consumption related items. It includes the study what they buy, whey they buy it, when they buy it, where they buy it, how often they buy it and how often they use it. The primary purpose for the study consumer behaviour as apart of marketing curriculum is to understand how and how customers make their purchase decisions. There insights enable marketers to design more effective marketing strategies.

Gupta.C .B and Dr. Nair. N.Rajan

- A business is based on understanding the

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

74

Mamoria C.B. and Mamoria Satish

- Consumer behaviour is the process where by

individuals decide what, when, where, how and from whom to purchase goods and services. Buying behaviour may be viewed as an orderly process here by individual interacts with his environment for the purpose of making market decision on products and services. Nair Suja. R.4 - The success of the firm will be determined by how effective it has been in meeting the diverse customer needs and wants by treating each customer as unique and offering products and services to suit his/her needs.

Bennett Peter.D. And Kassarjian Haroldh

- A great deal of research activity in

marketing is design to shed light on the customer decision process. Kothari C.R.6 For data analysis different statistical techniques are being used such as scaling techniques, correlation, hypothesis testing.

Mrs. M.L. kamaeswari (The Indian Journal Marketing Oct - 2009) has expressed that, industrialization has bought vast changes in the automobile industry, because and development of any area requires appropriate transportation facilities, automobile industry in one of the fastest growing sectors in our country. The rapid growth of middle class section is the primary reason for the growth of two wheeler industry people in rural and semi urban areas are trying to devote their life style and people in metropolitan cities are completely disappointed with the public transport system. Indian is the third largest manufacture and second largest consumer of two-wheeler in the world. It has been achieved due to variety of reason like restrictive policy of the government of Indian and 75

rising demand for personal transport.

Dr. Senthilkumar , department of business management, Indian automobile, in his research study 2009, found that competitive hostility, supplier, power and market turbulence relationship appreciate the role of public private partnership as win win situation for private entities government an individual consumers. In recent we saw twowheeler manufacture like bikes focus being on the domestic market and then on exports. There are signs of becoming a developed nation and this will increase the energy need if the country even more.

Mr. Senthil kumar department of research scholar in Indian council for market research, ICMR conducted a study and published in the journal of marketing,2009,to understanding the buying behaviour or towards vehicle that are being aggressively marketed by companies. The objective of the study was to understand the growing awareness of products. It was interesting to note that respondent agree to have a change in buying behaviour depending upon the product being stated as a green.

According to Research and Market report (2010), Indian automobile industry has a bright history and the first car in India came into the roads in the year 1898 and liberalization and globalization policies has shown major impact on Indian auto industry which lead to drastic changes in automobile industry of India. automobile industry is playing vital role in economical sector and employment sector, which is offering wide range of employment opportunities to the individuals. Competition is the major problem in automobile industry and especially Indian auto 76

industry is facing tough competition with global companies in global markets and local markets. India is a place with different communities of people with wide range of cultures and preferences. While comparing Indian auto industry with global auto industry India still needs to make many developments in order to compete themselves with major global competitors. Future work should be performed in order to specify the comparison of Indian auto market with global auto market.

Literature review is the significant aspect in the research process because it is the only aspect that can be used to find the research data from published information sources. Different ideas and opinions of scholars can be considered and analyzed in a critical manner in order to fill the research gaps. Literature review chapter of this research study includes the significant information on different aspects related to problem statement such as automobile industry, buying behavior of customers, Tata Nano and car marketing strategies. The actual research problem is competition among automobile industries, identifying buying behavior of customers, Tata Nano effect etc. The different types of articles on Indian automobile industry, Tata Nano, buying behavior of customers along with the information on car marketing strategies to be followed in order to overcome the competition and become successful company in the market are taken into consideration and are analyzed critically in order to get final results.

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One major problem in the automobile industry is the changing buying behavior of the customers. Each and every customer will have their own preferences but they change according to their mindset, and because of this changing behavior the automobile companies are unable to identify the requisite needs of the customers. Because of the existence of more car companies in the market, customers prefer companies that offer new features and designs of high-end models with good quality in performance as well as safety at a low cost price. The main research problem is to identify the buying behavior of Nano customers. The detailed information on Indian automobile industry will be considered and analyzed to identify the problems faced by Indian auto companies in marketing their car products. Its apparent that nowadays the fuel cost is increasing regularly which is a major problem faced by every person in the world. Also because of the heavy usage of fuel cars, there is the existence of huge environmental pollution. Because of these problems costumers are thinking twice about fuel efficiency when they buy a car, thus the automobile industry is facing a huge problem in designing a fuel-efficient car to overcome the competition with other companies. Along with fuel efficiency features the customers are even giving priority to safety, styles and comfort-based services. The automobile companies are facing many problems with the changing buying behavior of the consumers. Even though most of the cars have good features they often rejected them because of poor fuel efficiency. In order to overcome these problems automobile companies are offering the fuel-efficient cars, which emit less carbon dioxide and are made of the CNG, LPG as well as the biogases. The other major problem is maintenance of the services according to the changing behavior of the customers. The customers are the people who will always compare the 78

services and products of one company with the others and prefer only one single company. In order to attract the customers towards their companys products, most of the automobile companies are offering new cars with good features and fewer prices with good financing plans. To overcome all these problems and to be one of the best automobile companies among the competitors the automobile companies should follow some specific strategies related to the market, which will be explained in detail in this study. RESEARCH TOPIC : TWO-WHEELER AUTOMOBILE INDUSTRY IN INDIA

Abstract of the report : Indian two -wheeler contributes the largest volumes amongst all the segments in automobile industry. This segment can be broadly categorized into 3 sub-segments viz.; scooters, motorcycles and mopeds. In the last four to five years, the two-wheeler market has witnessed a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2008-09. The Euro emission norms effective from April 2000 led to the existing players in the two- stroke segment to install catalytic converters. All the new models are now being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in propelling the demand for motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, 79

motorcycle has been taking away the share of scooters and mopeds in a 4.3 million two-wheeler market and surging ahead with its market share of 68%. The increasing demand from semi-urban and rural segments may have caused this positive shift towards motorcycles. Also, easy credit coupled with low interest rate regime, constrained personal transport, increasing income levels in middle class and higher aspirations of young people all seem to be the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been robust enough to counter the slowdown and other factors constraining the overall business activity in the country. Also, rationalization of excise duty in the Union Budget 2002-03 had a positive impact on the demand for motorcycles. We also expect the motorcycles to continue to lead the two-wheeler segment like in all other Asian countries. RESEARCH TOPIC : TWO WHEELER INDUSTRY ANALYSIS

Abstract of the report : Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The twowheeler industry has been in existence in India since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. This is the main reason for us to consider innovations in the two wheeler sector.

In order to produce a comprehensive report, we have made use of both primary and secondary research. In the secondary research, a literature review has been done entailing 80

the various innovations in the two-wheeler sector and a comparative analysis of the two main players in the Indian market. A questionnaire based primary research has been carried out to provide insights into the psyche of the consumer on innovations. Basically the viability of the innovations has been explored, keeping in sight consumer wants.

RESEARCH TOPIC : Emerging global trend and growth of sports bike segment in Automobile industry: Perception of Indian consumer.

Abstract of the research : The main study of my research was to research on the Emerging global trend and growth of sports car segment in Automobile industry y: Perception of Indian consumer. Sports bike segment is expanding around the world especially India. Sports bike segment is the fastest growing segment in the automobile industry. Across the World youth especially with the age group of 25 30 years are the major buyers of sports bikes. The demand for sports cars is increasing rapidly in youth than in the elder generation due to its sleekness and speed. The Sports bike is an expensive toy for the high income level people. The demand for sports car is more in developed and developing countries than in under developed countries.

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CHAPTER 5:
OBJECTIVES AND SCOPE OF THE STUDY

82

Objectives of the study

The objective of the research is to know the Customers buying behavior for purchasing two wheeler bikes on the basis of Price, Fuel efficiency, Brand, Style and comfort in Delhi & NCR.

To find out the factor which are consumer consider before purchasing two wheeler bikes. To Know about the market share of two- wheeler bikes companies. To know the consumer satisfaction level of consumer of two wheeler bikes after purchasing.

FACTORS UNDER STUDY:

1. PRICE 2. FUEL 3. EFFIENCY 4. BRAND 5. STYLE 6. COMFORT

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CHAPTER 6: RESEARCH METHODOLOGY

84

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem, which is a science of study how research is done scientifically. Thus research methodology encompasses the research methods or techniques; the research is capable of being evaluated either by the researcher himself or by others.

SAMPLING
Sampling may be defined as the selection of some parts of an agreement or totality for the purpose of study. All the items in any field of inquiry constitute a universe or population, a complete enumeration of all the items in the population is known as Census inquiry. But when the field of inquiry is large this method becomes difficult to adopt because of the limited no. of resources involved in the case sample survey method is chosen under which units are selected in such a way that they represent the entire universe.

SAMPLING DESIGN
CENSUS METHOD: - All the items in any field of inquiry constitute a Universe or Population. A complete enumeration of all the items in the Population is known as a Census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained. But in practical it is not true in all cases. This type of inquiry involves a great deal of time, money and energy. Therefore, when the field of inquiry is large, this method becomes difficult to adopt because of the resources involved.

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SAMPLING METHOD:- When field studies are undertaken in practical life, consideration of time and cost almost invariably lead to a selection of respondents i.e. selection of only few items. The respondent selected should be as representative of total population. These respondents constitute what is technically called a Sample and the selection process is called Sampling Technique. The survey so conducted is known as Sample Survey.

Implementation of Sample Design: - A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sampling design may as well lay down the number of items to be included in the sample i.e. the size of sample. Sample design is determined before the data are colleted.

Steps In Sampling Design :- While developing a research design following items are taken into consideration:-

I. Type of universe: - First and the foremost step is to clearly define the universe to be studied. As I have taken the area of Delhi & NCR, so for me here the universe is Delhi area. No doubt it is a finite universe but the area is very big and cant be covered easily due to shortage of time.

II. Sampling unit: - A decision has to be taken concerning a sampling unit before selecting sample. Here my sample unit includes college going students who own bikes. 86

III. Size of sample: - This refers to the number of items to be selected from the universe to constitute a sample. Here I have taken the sample of 200 consumers who have bikes.

IV. Parameters of interest: - In determining the sample design, one must consider the question of the specific population parameters which are of interest. Here I had taken all consumers who own their bike. V. Sampling procedure: - Finally the technique of selecting the sample is to be dealt with. That means through which method the sample has been collected. There are various types of selecting the sample. This includes probability sampling, random sampling, convenience sampling. Here I have used the cluster sampling method for data collection, as Delhi area is very big and there are many consumer.

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CHAPTER 7: Analysis of Data Collection

88

Analysis of Data collection

Table 1 Which factor influence you more to purchase a bike? Which factor influence you more to purchase a bike? Brand image Fuel efficiency Price Comfort Syle No. of respondents

50 81 27 17 25

Table 3 shows that 53 respondents are influenced to purchase a bike from its brand image, 81 respondents are influenced to purchase a bike from its Fuel efficiency, 27 respondents are influenced to purchase a bike from its lesser Price, 17 respondents are influenced to purchase a bike from its Comfort, 25 respondents are influenced to purchase a bike from its Style.

Fig. 1

89

Table 2

Are your aware about 150 cc bike brands available in the market?

Are your aware about 150 cc bike brands available in the market? Fully Aware Aware Less aware

No. of respondents

93 76 31

Table 1 shows that 93 of respondents are fully aware about 150 cc bikes in market, 76 of respondents just aware about 150 cc bikes and only 31 of respondents are have little bit knowledge about 150cc.

Are your aware about 150 cc bike brands available in the market ?
93 76

100
No. of respondents

80 60 40 20 0 Fully Aware

31

Aware

Less aware

Fig. 2

90

Table 3
How do you come to know about this brand/model of 150 cc bike? How do you come to know about this brand/model of 150cc bike? Friends Advertisement Publicity Family members Any other No. of respondents

45 87 10 47 11

Table 2 shows that 45 of respondents came to know about brand of bikes from friends, 87 of respondents came to know about brand of bikes from advertisement, 10 of respondents came to know about brand of bikes from publicity, 47 of respondents came to know about brand of bikes from family members and 11 of respondents came to know about brand of bikes from other sources.

How do you come to know about this brand/model of 150 CC bike ?

90 80 70 60 50 40 30 20 10 0

87

No. of respondents

45

47

10
Friends Advertisement Publicity Family members

11
Any other

Fig. 3

91

Table 4 Are you satisfied with its overall performance? Are you satisfied with its overall performance? Fully Satisfied Satisfied Moderate Less satisfied Poor No. of respondents

41 104 42 10 3

Table 4 shows that 41 of respondents are fully satisfied with the performance of their bikes, 104 of respondents are satisfied with the performance of their bike, 42 of respondents are moderate in satisfaction with the performance of their bikes and 3 of respondents are poorly satisfied with the performance of their bike.

Are you satisfied with its overall performance?

120

104

No. of respondents

100 80 60 41 40 20 0 Fully Satisfied Satisfied Moderate Less satisfied Poor 10 3 42

Fig. 4

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Table 5 According to you which company gives the most benefit to customers? According to you which company gives the most benefit to customers? Honda Bajaj TVS No. of respondents

63 109 28

Table 5 shows that 63 of respondents are saying that the Honda is providing more benefits of the services to the customers, 109 of respondents are saying that the Bajaj is providing more benefits of the services to the customers and 28 of respondents are saying that the TVS is providing more benefits of the services to the customers.

According to you which company gives the most benefit to customers ?

28 63 Honda Bajaj TVS 109

Fig. 5

93

Table 6 Which type of media influence your purchase behaviour? Which type of media influence your purchase behaviour? T.V. Newspaper Wall painting Hording Magazine No. of respondents

114 33 5 12 36

Table 6 shows that 114 of respondents and influence to purchase their bike through T.V., 33 of respondents and influence to purchase their bike through Newspaper, 5 of respondents and influence to purchase their bike through Wall painting, 12 of respondents and influence to purchase their bike through Hording and 36 of respondents and influence to purchase their bike through Magazine.

Which type of media influence your purchase behaviour ?

120
No. of respondents

114

100 80 60 40 20 0
T.V. New spaper

33 5
Wall painting

36 12
Hording Magazine

Fig. 6

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Table 7 Who influenced you more in your buying decision of bike? Who influenced you more in your buying decision of bike? Self Family Member Friends/Relative Mechanics No. of respondents

30 54 98 18

Table 7 shows that 30 of respondents have influence their buying decision from their self decision, 54 of respondents have influence their buying decision from their family members, 98 of respondents have influence their buying decision from their friends/relative and 18 of respondents have influence their buying decision from their Mechanics,

Who influenced you more in your buying decision of bike ?

98 100
No. of respondents

80 60 40 20 0
Self Family Member Friends/Relative Mechanics

54 30 18

Fig. 7

95

Table 8 In your opinion, what role advertisement plays? In your opinion, what role advertisement plays? Provides important details Creates awareness Misleading No. of respondents

65 125 10

Table 8 shows that 65 of respondents are in favor that advertisement provides important details, 125 of respondents are in favor that advertisement creates awareness and 10 of respondents are in favor that advertisement Misleading.

In your opinion, what role advertisement plays ?

No. of respondents

140 120 100 80 60 40 20 0 Provides important details 65

125

10 Creates awareness Misleading

Fig. 8

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CHAPTER 8:
CONCLUSION

97

Conclusion
The most important factor which influence to the customer is fuel efficiency. Advertisement is the main source of making awareness of two wheeler bikes. Most buyers of bikes are influenced by the mileage, maintenance cost and price. The another factor by which the buyers can influence is the service availability of the company. The most buyers are influenced by the stylish look and sporty look of the bikes. According to research, Bajaj company gives more benefit to customers Because Bajaj two wheelers have the good mileage, fuel efficient, and also have the good brand image whereas all other two companies ,there is the lack of mileage and fuel efficiency. Buyers relatives/friends influenced more in purchasing decision of bikes.

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LIMITATION OF THE STUDY

Various hindrances occurred while carrying out the research. They have acted as limitation of the study and a few of them are:-

1. Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. 2. Lack of resources: Lack of time and other resources as it was not possible to conduct survey at large level. 3. Small no. of respondents: Only 200 respondents have been chosen which is a small number, to represent whole of the population of Delhi & NCR. 4. Unwillingness of respondents: While collection of the data many consumers were unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time for them. 5. Confinement of Price: - Price of the bikes is confined only to a particular period. So the respondents were not able to fill in proper price of their bikes.

99

CHAPTER 9:
RECOMMENDATIONS

100

Recommendation
Recommendation refers to the outcome of the research work done and the suggestions for implementation i.e. findings. 1. New technology should be applied according to the requirement of the customer. 2. Provide various schemes which attract the customers. 3. Two wheelers Companies should advertise more & more to create the awareness about the bikes because advertisement is the main source of making the awareness. 4. Bike should be fuel efficient. 5. Bike should be available in different colors so as to attract two wheeler bikes consumer.. 6. Bike should be given sportier look.

101

CHAPTER 10: BIBLIOGRAPHY

102

BIBLIOGRAPHY
1. Schiffman Leon G. and Kanuk Leslie Lazar Consumer Behaviour 6th edition Published by: Prentice-hall of India Private Limited. ( page no. 2&6) 2. Gupta C.B. and Dr. Nair N. Rajan edition Published by: Sultan chand & sons (page no. 1.69) 3. Mamoria C.B. and Mamoria Satish edition Published by: Kitab Mahal (page no. 161) 4. Nair Suja R. Consumer Behaviour Indian Marketing Management 4th Marketing Management 5th

prospective Ist edition Published by: Himalaya Publicating Home ( page no. 3) 5. Bennett Peter D. and Kassarjian Harold Consumer Behaviour 8th edition

Published by: Prentice-hall of India Private Limited.(page no. 5) 6. Kothari C.R Research Methodology Methods

& Techniques 2nd edition Published by: Wishwa Publication (page no. 151, 94-95) 7. 8. 9. 10. 11. 12. 13. http://www.tvsapache.com/home.aspx http://www.bajajauto.com/pulsar/ http://www.honda2wheelersindia.com/unicorn/ride_n_fly/be_a_wing_rider.asp http://auto.indiamart.com/motorcycles/ http://www.thehindubusinessline.com/iw/2004/11/28/stories/2004112800421500.htm http://www.indiabike.com/infobank/unicorn/index.htm http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm

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ANNEXURE

104

Questionnaire

1. How long do you own this Bike? Less than six month Six month One year Two year More than 2 years

2. How fuel efficient your bike is?

3. What is the top speed (km/hs) of your bike?

4. Are you aware about the 150cc bike brands available in the market? Fully aware Aware Less aware

5. Which of the following model/brand of 150cc motorcycle you like the most 1 HONDA (Unicorn) BAJAJ (Pulsar 150cc) TVS (Apache) ---2 ---3 ----

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6. Which factor influence you more to purchase the bike 7. Brand image Fuel efficiency Price Comfort Style

How do you grade the following qualities Safety Comfort Fuel efficiency Style performance

8. Why did you prefer this model /bike? 1 Price Mileage --2 ----3 ----4 -----

After sales service -Power --

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9. Are you satisfied with its overall performance? Fully satisfied Satisfied Average Less satisfied Poor

10. According to you which company gives the most benefits to customers? HONDA BAJAJ TVS

11.Which type of media influences your purchase behavior? T.V Newspaper Wall painting Hording Magazine

12. Who influenced you more in your buying decision of bike? Self Family member Friends/relatives Mechanics

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13. In your opinion, what role advertisement plays? Provides Important details Creates awareness Isleading

Name Place Age

: : :

____________________________ ____________________________ ____________________________

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