Chapter-1 INTRODUCTION

INTRODUCTION TO THE INDIAN MOBIKE INDUSTRY

The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler market. The other players including Kinetic Engineering, LML and others account for the remaining 20 percent of the market. The industry can be divided into three broad segments: Scooters, motorcycles and mopeds. In the scooters segment Bajaj is the market leader, Hero Honda is the market leader in the motorcycles segment and in the segment of mopeds, TVS controls the major chunk of the market. Most Indian players in the two-wheeler industry had been into some kind of strategic alliance, technical collaboration or joint venture with foreign players, mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal-promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (till September 2001); Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor Corp. (till June 2001). Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car segment, is yet to come to a stage where all the models are developed indigenously. For years now, Indian companies have been dependent on their foreign joint venture partners or collaborators to provide them with the technical know-how. This trend too is in for a change. Leading the pack in this arena is Bajaj, which has been Successful at designing models in-house. Bajaj's Saffire and Spirit, have been able to bag the scooter of the year award for 2003 and 2004 respectively. In fact, its Spirit was adjudged the "Indigenous product design of the year" for the year 2000. The recently launched Pulsar from the Bajaj stable is yet another home-grown product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been laying increased emphasis on its R&D so as to be able to launch new products to tap the markets at all possible price points. Other companies too are adapting the strategy of designing and developing products indigenously. TVS's Victor is yet another development in this direction and this indigenously built model has been a success in the markets.

OVERVIEW OF AUTO MOBILE INDUSTRY IN INDIA

A two-wheeler is used as a personal/family vehicle or a goods carrier in the developing countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds) in developed countries. The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shift in manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player positions, Honda Motors Corporation, Yamaha Motors and Suzuki Motors Corporation share the top three slots in the world two-wheeler market. The table below shows the production and sales figures of motorcycles and scooters in Japan during the past decade More than 50% of the production in Japan is exported out of the country. This scenario contrasts directly with the Indian scenario. In India, only about 2% of the production in FY99 was exported The Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry. The technology for two-wheelers is not as well developed as for car industry. This is due to oligopoly between top five players in the segment, compared to thirty manufacturers in the car industry

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE
The objective of my research project is
To study the company profiles of Hero Honda Motors & Bajaj automobiles in regard to their history, market shares and product i.e. Bikes.

To make a comparative analysis of the bikes of Hero Honda & Bajaj

RESEARCH DESIGN
1) Study of Secondary Data: The quickest and the most economical way from researchers is to find possible hypothesis is to take the advantage of the work done earlier and thus utilize their efforts. 2) In-depth Interviews: We used in-depth interviews because it attempts to influence respondents to talk freely about their subject of interest. No formal questionnaire was used in depth interviews. The interview was conducted with an outline co-relation between employee commitment and organizational performance in mind.

TYPES OF RESEARCH
Exploratory research: In well-established fields of study, hypotheses usually are drawn from the ideas developed in previous research studies or are derived from theory. Hypotheses are tentative answers to questions that serve as guides for most of the research.

DATA SOURCES
Basic methods of collecting Primary Data:
1) Questionnaire Method: The questionnaire used by us for the purpose of data collection were of structured type( Non-disguised as well as Disguised) 2) Contact Method: In order to derive information from the intended organization, it was elementary for us to search for a link, which could enable us to conduct a research in that organization. The personal contact of one of the group members in the aforesaid organization helped us in getting an appointment soon.

Basic methods of collecting secondary data:

1) Magazines 2) Books 3) Brochure 4) Web Sites

LIMITATIONS
While carrying out the study, researchers always come across some limitations. Some of the limitations faced during this research are:1. The study is limited to Delhi only. 2. Sample size is small so the conclusions cannot be generalized for the complete banking sector. 3. Lack of time is a major constraining factor. 4. Most of the concerned people is so busy that they did not have quality time to fill the questionnaire judiciously and give detailed information.

Chapter-2 COMPANY PROFILE

COMPANY PROFILE

JOURNEY SO FAR

Indian companies had relied heavily on their foreign counterparts for technical support, design of the model etc., while they provided the distribution and branding in the Indian market. Now that the Indian market for motorcycles is fairly developed and consumers are well aware. The inadequacy of the public transportation system, the upwardly mobile middle class, which has the disposable income and the intent to own a two-wheeler and the sheer size of the Indian market is proving to be an attractive factor to many multinational companies. India's two-wheeler industry is the second largest market in the world after China. Honda Motors, whose tie-up with HeroHonda is going to expire soon, has already entered the fray with Honda-Activa. Others are also queuing up.

Yamaha Corporation, which was operating in India through a joint venture with Escorts Group, had decided to call it quits in mid-2001 by buying off Escorts' 50 percent share in the joint venture. Yamaha now plans to tap the Indian market on its own with models such as RX-135, RXZ, YBX125, YD125, and ACE. Its name has become fairly established while the joint venture had been in operation for two decades. On its own now, Yamaha has started implementing its ambitious plans for the Indian market and has embarked on a challenge 21 project, a time-bound initiative that is aimed at reorienting and revitalizing the entire Indian operations in order to achieve a competitive edge. Yamaha has set for itself the target of capturing 21

percent of India's motorcycle market by 2006. India is one of the few countries where Yamaha, the world's second largest motorcycle manufacturer operates a fully owned subsidiary.

HERO HONDA

"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today, the odyssey was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the years.

Hero, a name synonymous with two wheelers in India is today a multi-unit, multiproduct, geographically diversified Group of companies. Through fully integrated operations, the Munjals roll their own steel, make critical components such as free wheels for their bicycles, and have the foresight to simultaneously diversify into myriad ventures, like product designing, IT enabled services, finance and insurance, just to name a few. 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. Throughout its success trail, the Hero Group and its members have displayed unwavering passion of setting higher standards for themselves and delivering simply the best to their customers. The Hero Group philosophy is: "To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from being customer-centric, the Hero Group also provides its employees with a fine quality of life and its business associates with a total sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has become a way of life and a part of the work culture of the Group. This is what drives the Group to seek newer vistas, adopt faster technology and create quality driven products to the utmost satisfaction of customers, partners, dealers and vendors. Today the Hero Group has a number of accolades and achievements to its credit yet consumer requirements and newer technologies provide fresh challenges every day, and at Hero the wheels of progress continue to turn.

INTRODUCTION TO HERO GROUP Mission Statement

In pursuit of excellence: We, at Hero Honda, are continuously striving for

synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium".

WE CARE FOR ENVIRONMENT

A philosophy closest to Hero Honda is that which pertains to the environment, which is why the company goes that extra step to ensure that each one of the high technology 4-stroke Hero Honda motorcycles meet the most demanding of pollution norms at every level. This is a policy that the company has followed since the very beginning.

WE CARE FOR COMMUNITY

Hero Honda is a company with a difference. Constantly involved in social activities, spreading. Awareness about the community and environment, the company has taken a giant step in the fields of Health care; Education; Engineering; Environment and many more

INTRODUCTION TO HERO HONDA PRODUCTS

Hero Honda is the largest player in the motorcycle segment. Its Focus is on manufacturing mobikes which are contemporary in design and style and as well as eco friendly to environment. Hero Honda Motors ltd was the first company to concentrate manufacturing fuel-efficient bikes instead of powerful bikes. The company has a comprehensive range of bikes in its stable 1. 2. 3. 4. 5. 6. 7. CD-100DX CD-100SS Splendor Street Smart Sleek CBZ, Passion.

However Street failed to evoke market fancy while sporty CBZ dropped down the popularity chart in early 90s. Hence the company continues to rely on urban centric Splendor ; its primary revenue spinner with the USP of fuel efficiency, which accounts for over 60-70%of its sales. The " Passion " launched in mid -Jan 2001has had a resounding success contributing to 26% of total volumes and has not cannibalized the volumes of Splendor . With the sale of over 1mn motorcycles in

2004-05, the company has also become the largest volume seller among all Honda Companies and ventures in the world. The company has now shifted its focus towards launch of new products. HHML launched a 100cc motorcycle Joy in FY2001delivering 65 to 70 km per litre in city driving conditions. The company hopes to achieve sales of 8,000 to 10,000 units of Joy per month. The company is also planning to launch motorcycles in 200cc 300 cc category and is looking at the possibility of introducing a luxury motorcycle "in the same category. HHML has planned an additional capacity of 1.5mln units pa at Dharuhera plant by investing Rs3bn ($65mn) to meet the huge and increasing demand for motorcycles. The Honda Motor Corporation of Japan has set the annual sales target of 2.75 mln 2wheelers (25% of worldwide target) for 2006 in India, to be contributed to the extent of 1.5 mln by HHML and the balance by its wholly owned subsidiary Honda Motorcycles & Scooters India Pvt. Ltd.

HERO GROUP ACHIEVEMENTS

Hero Group ranks amongst the Top Indian Business Houses comprising of 18 profit-making companies, with an estimated turnover of USD1.36 billion during the fiscal year 2005-06. The Group and its management have acquired a number of accolades and achievements over the years: Group Chairman, Mr. Brijmohan Lall Munjal received the coveted "Ernst & Young Entrepreneur of the Year" award for 2005. A survey by leading business newspaper - Economic Times - declared Hero Honda as "the most trusted automobile brand in India." Hero Honda was ranked number 4rth in India by Review 2006 - an annual survey of Asia's leading companies conducted by Far Eastern Economic Review. Hero Group Management style has been acclaimed internationally by leading institutions likes INSEAD (France). World Bank has acclaimed Hero Cycles as a role model in vendor development based on a worldwide study. The London Business School, UK, has done a study on the Group as model of entrepreneurship. Boston Consulting Group has ranked Hero Group as one of the top ten Business Houses on Economic value, in India.

ABN Amro has rated the Hero Honda stock as one of the most valuable and one of the most under-rated.

Engineering Exports Promotion Council has awarded Hero Cycles with the Best Exporter Award for the last 28 years in succession. HSBC-Merril Lynch has estimated Hero Group would be among the top value creators in 2005-06. Hero Cycles Limited is a Guinness Book Record holder since 1986 as the world's largest manufacturer of bicycles. Hero Honda ranked Number One in the two-wheeler category on Environmental Performance by the Centre for Science and Environment. The Hero Group is recognized as a long term partner and an ideal employer: Hero Group's partnership with Honda is over 16 years old. Hero Cycles Limited has not lost a single man-day of production since 1956

MILESTONES Hero's success saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. 1956 1961 Hero Cycles Limited is established. Rockman Cycles Industries Limited established, which is today the largest manufacturer of bicycle chains and hubs. 1963 1971 It pioneered bicycle exports from India - a foray into the international market. Highway Cycles was set up to meet the demands of Hero Cycles. It is today the largest manufacturer of single speed and multi-speed freewheels. 1975: 1988: Hero Cycles Limited became the largest manufacturer of bicycles in India. Majestic Auto Limited was formed and the Hero Majestic Moped was introduced. 1991: 1994: Munjal Castings established. Hero Honda Motors Limited established in joint venture with Honda Motors of Japan, to manufacture motorcycles. 1995: Munjal Showa Limited established to manufacture shock absorbers and struts and is today among the top two shock absorber manufacturing companies in India. The 100 cc Hero Honda Motorcycle arrived and by 1988 was the No. 1 among

all motorcycles in India. Hero Cycles Limited entered the Guinness Book of Records as the largest 2000: 2002: bicycle manufacturer in the World. Hero Motors, a division of Majestic Auto Limited set up in collaboration with Steyr Daimler Puch of Austria. Gujarat Cycles Limited, now known as Munjal Auto Industries Limited was established to manufacture and export state-of-theart bicycles and allied products in its fully automated plant at Waghodia. Sunbeam Auto Limited, earlier a unit of Highway Cycles Limited, established as an ancillary to Hero Honda. It is the largest die casting plant in India. 2003 Introduced "Hero Puch" from Hero Motors Limited. This revolutionary machine immediately set new records of petrol efficiency and usable power in 50 - 65 cc machines. 2004 Hero Cold Rolling Division established and is one of the most modern steel cold rolling plants.

2005

Hero Honda receives National Productivity Council's Award. Hero Honda receives the Economic Times - Harvard Business School Association Award against 200 contenders.

MARKETING PRESENCE OF HERO HONDA MOTORS

By everyone. The farmer in Punjab. The fisherman in Kerala. The trader in Mumbai. And the worker in Bengal. Imagine having a place in their hearts. Imagine echoing their heartbeats. Imagine being part of the great Indian fabric. Thats the great Indian dream. Of every company and it is what Hero Honda is trying to accomplish through its advertisement and marketing initiatives for the entire range of Hero Honda motorcycles and the latest campaign broadcasted onn all premier channels desh ki dhadkan is a step in that direction. Says Navroze D. Dhondy, CEO, Percept Advertising, which made the 60-second television commercial, "We wanted to say that Hero Honda was more than a bike. It was a friend, something that has been part of your life, something that has shared your best moments." So who's the target? Everybody. The models in the advertisement range from children to old people. The message? Everybody needs a Hero Honda. In the shape of a CD100, or a CBZ, or a Splendor, or a Street. "Desh ki Dhadkan" is the catch line. "Dhak, Dhak," the message. "We echo the heart beat of every Indian," the claim. "We were looking for something new. We wanted to tell the viewer that we were way above the rest," says Atul Sobti, senior vice-president, marketing, Hero Honda.

PRODUCT PROFILE OF HERO HONDA

Hero Honda Splendor

The most successful model of Hero Honda Motors ltd which has caught the fancy of Indian customers. Its sale accounts for 40 % of the product profile. The reason for its success is the unbeatable mileage. A combination of style and economy makes the Splendor is a bike worth investing in. The latest from the Hero Honda factory offers both performance and looks. It has good looks, excellent handling characteristics and a smooth drive over any type of terrain, thanks to the changes in the suspension at front and near as well as the new frame design. All these features contribute to the Splendor being one of the best selling four stroke-two-wheelers in India.

Hero Honda Street 100

The Street 100 is Hero Motor's latest twowheeler on offer in the step-through category. The Hero Honda Street 100 is equipped with unique features like city-clutch, which is designed specially for city driving. It has rotary gears, which allow the rider to flip directly from the fourth gear to neutral once the bike has come to a halt, a must for the present stop-and-go traffic. A self-starter button comes as an option. The Street can be purchased with a variety of seat layouts and has options like a water pump, spray can, larger luggage tray, etc. Its major competitor is the much cheaper K4 from Kinetic. Major plus points that justify the higher price are the centrifugal clutch and the rotary gears. However, the liberal use of plastics negates much of the feel good factor and has hindered sales to a large extent.

Hero Honda CBZ

The Hero Honda CBZ (pronounced CeeBeeZee) is the latest offering from Hero Honda for the Indian market. With a 156cc engine, the company claims that the bike has a top speed of 100kph within 5.6 seconds. Though the bike has the largest displacement engine, its top speed doesnt match up to many of its competitors. In all other respects, it is a bit too early to decide whether the CBZ will sell in the same numbers as the Splendor. Though the initial market response has been good, only time will be the final arbiter. It was the first attempt by the company to target youth who would love to drive a bikes whch have sleek looks and don`t mind shelling out few extra bucks for it . Initially it was accepted by the customers very well but due to high maintenance costs its not a hot seller for the company.

HERO HONDA CD 100 SS

CD100SS is designed for those who live life in the fast lane, rough and tough, for those who would love to take a bike on the stumbling village roads. It shares almost all components with the CD100, except for the additional reinforcement. With larger, reinforced shock absorbers, wider tyres, heavier body weight and engine guard, the Hero Honda CD 100 SS weights slightly more, resulting in some cut down in the fuel economy it offers. Minor problems of the CD100 have been rectified in the SS model. If you wish to ride into the hinterland, this is the bike for you. It is a modified version of cd 100.

CD 100

Launched in May 1985, it is the legendary " Fill it shut it Forget it" motorcycle. It was India's first 100cc, 4-stroke motorcycle. Its simple design and fuel-efficient engine is

accepted in both rural as well as urban areas. IT was the first successful model of hero group of motorcycles and it caught the fancy of the customers by the tag line " Fill it Shut it Forget it. Was one of the first models of mobike launched by hero group aith technical tie up with Honda, Japan.

Hero Honda passion was launched in 2000 in order to create excitemnent in the market. IT was an attempt by HHML to modify the splendor in looks. The base engine was same as of splendor. It was promoted my tagline BORN IN STUDIO thus highlighting the sleek looks of passion. It was a hit among the young crowd and was very well received in urban markets of India.

COMPANY POLICIES
AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a high-quality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind. "We must do something for the community from whose land we generate our wealth." A famous quote from our Worth Chairman Mr.Brijmohan Lall Munjal.

Environment Policy We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy. To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility. Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management.

Quality Policy Excellence in quality is the core value of Hero Honda's philosophy. We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations through:

Innovation in products, processes and services. Continuous improvement in our total quality management systems. Teamwork and Resposibility

Safety Policy Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business performance, motivated workforce and higher productivity. We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities. Ensuring compliance with all applicable legislative requirements. Empowering employees to ensure safety in their respective work places. Promoting safety and health awareness amongst employees, suppliers and contractors.

Continuous improvements in safety performance through precautions besides participation and training of employees.

Chapter-3
FINDINGS AND ANALYSIS

SWOT ANALYSIS

SWOT OF HERO HONDA

Hero Honda motors ltd is highest selling mobike company in India and is the largest two wheeler manufacturer in the world. As the case is every company has it strengths and weaknesses and Hero Honda Is no Exception: -

STRENGTHS
Market Leader in terms of sales and turnover Successful Technical Tie up with Honda and a very healthy relationship with them A wide network of dealers across the nation A wide network of authorized service stations at different parts of the country A wide veriety of product portfolio Very strong brand image of making fuel efficient and reliable bikes High product and brand recall among the customers infect hero Honda is the first choice among the majority customers.

WEAKNESS
Major weakness of hero Honda are

 Not a strong player in the rural market Tie up with Honda expiring in 2 yrs Very few models at the lineup stage R& d of hero Honda is weak Not a great player in entry level bikes which is dominated by bajaj Not a Strong Player in the Premium Market Only 2 models which are successful Splendor and passion Not a very strong marketing deptt. Only one campaign was a hit fil it shut it and forget it Its a non player in scooter market which is huge even though that industry is going through a rough pace

OPPORTUNITIES
1) Its a growing market thus company has high growth potential in

future 2) Premium segment is still not fully exploited with right product HHML

can do wonders 3) 4) Neighboring countries markets are not exploited fully Need to tap African and European market.

THREATS
1) 2) 3) Entry of new players Honda entering in the bike market will pose a considerable threat Competitors becoming aggressive with new product launches and high

marketing pitch

4) 5)

Aggressive Yamaha posses another threat NO tie up with any other company can lead to losses.

BAJAJ AUTOMOBILES
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and threewheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities.

The present Chairman and Managing Director of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

MILESTONES

2005 December June February 2004 Sept/Oct August May January 2003 October October July February

Bajaj Discover launched Bajaj Avenger launched Bajaj Wave launched Bajaj Discover DTS-i launched New Bajaj Chetak 4 stroke with Wonder Gear launched Bajaj CT100 Launched Bajaj unveils new brand identity, dons new symbol, logo and brandline Pulsar DTS-i is launched. 107,115 Motorcycles sold in a month. Bajaj Wind 125,The World Bike, is launched in India. Bajaj Auto launched its Caliber115 "Hoodibabaa!" in the executive motorcycle segment.

2001 November Bajaj Auto launches its latest offering in the premium bike segment Pulsar. January The Eliminator is launched. 2000 The Bajaj Saffire is introduced. 1999 Caliber motorcycle notches up 100,000 sales in record time of 12 months. Production commences at Chakan plant.

1998 June 7th July 25th October 1997 1995 November 29

Kawasaki Bajaj Caliber rolls out of Waluj. Legend, Indias first four-stroke scooter rolls out of Akurdi. Spirit launched. The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.

Bajaj Auto is 50. Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development. The Bajaj Super Excel is introduced while Bajaj celebrates its ten millionth vehicle.

1994 The Bajaj Classic is introduced. 1991 The Kawasaki Bajaj 4S Champion is introduced. 1990 The Bajaj Sunny is introduced. 1986 The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year. 1985 November 5 The Waluj plant inaugurated by the erstwhile President of India, Shri Giani Zail Singh. Production commences at Waluj, Aurangabad in a record time of 16 months. 1984 January 19 Foundation stone laid for the new Plant at Waluj, Aurangabad. 1981 The Bajaj M-50 is introduced. 1977 The Rear Engine Auto rickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year. 1976 The Bajaj Super is introduced. 1975 BAL & Maharashtra Scooters Ltd. Joint venture. 1972 The Bajaj Chetak is introduced. 1971 The three-wheeler goods carrier is introduced. 1970 Bajaj Auto rolls out its 100,000th vehicle.

1960 Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. 1959 Bajaj Auto obtains license from the Government of India to manufacture twoand three-wheelers. 1948 Sales in India commence by importing two- and three-wheelers.

BAJAJ PRODUCTS

INDUSTRY ANALYSIS

POLITICAL ANALYSIS
Traditional GOVERNMENT OF INDIA has considered the automobile industry as a luxury segment. But realizing the growing importance of two-wheelers with the increasing necessity of personal transportation for the middle class in eighties, priority was given to the sector by favorable foreign policy. This brought about technology revolution to the two-wheelers as Japanese majors entered in technical and financial participation with Indian majors. GOI has a moderate intervention in the operations of two and three-wheeler industry. Excise duty structure, emission control, safety of rider, etc are all policy decisions. The excise duty on two-wheelers, which previously ranged between 10 to 30%, according to the engine capacity was rationalized in 1991-92 budget to only twocategories viz 15% upto 75cc and 25% above 75cc. This mainly affected manufacturers of 100cc category in the early nineties. Since then the excise duty structure for two-wheelers has been left unchanged till 1999. In the 1999-2000 budget, as a result of rationalization of duty structure the excise duty up to 75cc vehicles was increased to 16% while for those above 75cc decreased to 24%. As a result, scooter prices were reduced by Rs200-400 per vehicle. The components used for manufacturing two-wheelers are charged an excise duty of 15%. The industry has been asking GOI to reduce this excise duty to 10%. Two and three-wheelers sector was the first to be de-controlled from the clutches of government regulations. This has resulted in the entry of world majors and subsequent in technology and equity participation with Indian players. This has lead to technology revolution for the two-wheelers in 1980's. The regulation of safety of the rider is controlled by state government notifications, these vary in different states. For example helmets are compulsory for two-wheeler riders in New Delhi and some other states. The same is optional in Maharashtra and Karnataka.

The price of the two-wheelers varies across the country due to variation in registration charges, state taxes and octrai levied by states. The GOI controls availability and price of petrol, the fuel for two-wheelers. But with the dismantling of Administered Price Mechanism (APM), The availability of unleaded petrol across the country will be a crucial factor, as catalytic converters work satisfactorily only under unleaded petrol.

SOCIAL ANALYSIS
The main social factor that associated with automobile industry is the environmental concerns and HEALTH HAZARDS, (including the welfare of workes etc, )in form of various diseases due to auto pollution. . Some of the issues of pollution related to automobile are discussed below.

ECONOMICAL ANALYSIS

Automobile industry is the indicator of the technological health of the country. It also reflects economical status of a country. India planners need to consider that the auto industrys one segment that is capable of very rapid growth unlike traditional areas like agriculture, minerals, chemicals, energy, textiles, gems etc. While all sectors need to be encouraged, the auto sector is not only capable of very rapid growth but also of good exports and huge employment. In the past, auto industry suffered from the stigma of being considered elitist and was subjected to crippling restrictions and taxation that still hold it back. There is 40% MODVAT on the components and 35% customers duty on imported kits. After production there 245 to 32% excise duty plus 12% local sales tax some other local tax. So every time you buy a car, bike or truck, you give one to government in taxes. The impact on employment is also little understand. Every direct or indirect salaries job also generates huge territory employment to the providers of food, clothing, shelter, health, education entertainment, recreation, construction etc. accounts of 10% of Indias auto industry, the cumulative impact is huge. Indian two-wheeler manufacturers have everything going for them in this battle. They have a large, mature market, which offers them tremendous volumes. All of them have built up huge capacities which offer scale economies. They have technology support from some of the leading names in the world such as Honda, Yamaha, Suzuki and Kawasaki. If India cut the total taxes on auto by half, there would be a huge immediate boost in sales and production. If this sacrifice by the governments can generate may times greater value in jobs and economic activity, this time of crisis is the ideal time to use autos as a vehicle to kick start the entire economy.

SWOT ANALYSIS OF BAJAJ AUTOMOBILES

STRENGTHS:

Bajaj Automobiles draws it's strength from 29 years of experience in handling the ever changing automobile scenario

strong customer relationships ability to provide the cutting edge technology at best-value-for-money an excellent service & support infrastructure.

WEAKNESSES:

The company needs to evolve a comprehensive plan & strategy to make inroads into a part of middle class & upper middle class.

Lack of R & D centers also makes it difficult to launch new products over here.

OPPORTUNITIES:

The present rate of growth of the Automobile Industry & a large potential available in these areas provides excellent opportunity for the company to widen its market.

With the fast growing economy the pricing strategy needs to be tackled with care as it can decide upon long term decisions of the company.

Globalization is yet another opportunity, if followed effectively & promptly.

THREATS:
It is natural that threats from the existing as well as new entrants will affect the present turnover & Market share. The nearest competitors having the identical product range are the greatest threat to the company.

DATA ANALYSIS AND INTERPRETATION

Q1:->Which type of bike do you have? (A) Performance segment bike (B) An Average segment bike 60% 40%

40% 60 %

Performance Segment Average Segment

FIGURE 1

Q2:->Please select your main purpose of using a bike? (A) Business (C) Leisure (B) Personal (D) Status

8% 10% 12% BUSINESS PERSNAL LEISURE STATUS 70%

FIGURE 2

Q3:->Would you like to change your bike from any other companys bike in the same Segment? (A) (B) Yes No 12% 88%

12% YES 88% NO

FIGURE 3

Q4:->Would you like to change the segment of your bike? (A) Yes 20% (B) No 80%

20% YES 80% NO

FIGURE 4

Q5:->Are you satisfied with the performance of your bike, if Yes or No? Why?

(A) Yes 6% (B) No 94%

6%

YES 94% NO

FIGURE 5

REASON FOR DISSATISFACTION

10% 26% 35% 29% Less no of service stations others Low average Maintaince

FIGURE 6

Q8:->Which facilities would you need ? (A) Low price (B) service station

(C) incentives (D) others

26% 35% 29% 10%

10% 26% 29% 35% Low price service station incentives others

FIGURE 7

Q9:->Do you get spare-parts of your bike easily from the market ? (A) Yes (B) No 85% 15%

15%

Yes No
85%

FIGURE 8

Q10:->What are your main preferences while buying our products ? (A) Brand (B) Price (C) Features (D) Service (E) Dealers advice (F) Promotion schemes

Brand Price Features Services Dealer's advice Promotion scheme

FIGURE 9

Q11:->Would you like to purchase the products of our company in future ? (A) Yes 75% (B) No 25%

25% 75%

Yes No

FIGURE 10

Q.12 What Is Your Preference Of Bikes In Indian Bike Industry ?

35 30 25 20 15 10 5 0 HERO HONDA TVS

HERO HONDA

HERO HONDA BAJAJ TVS YAMAHA

FIGURE 11

Q.13 What is your Favourite Status of Bikes among the Two Companies?

60 50 40 30 20 10 0 HERO HONDA

HERO HONDA

HERO HONDA BAJAJ

FIGURE 12

FINDINGS
The company offers a good outlook in a long-term perspective. It is expected to emerge as the top corporate in creating value for shareholders by 2003-04 if it manages to sustain the volume growth rate in the near future. HHML has been included in the BSE Sensex from Jan 2002 replacing M&M, which is a reflection of its stranglehold on the domestic automobile market. HHML is set to follow a phased distribution and product strategy .The company being buoyed by the success of its OM Project that has paid off by clocking sales of 1 mln bikes last fiscal; has initiated a new programme Joy of Leadership for fiscal 2001-02 and will be complemented by customer relationship initiative called Hero Honda Passport with a tagline of " Suhana Safar " across all its dealerships and service stations in the country. The scheme will allow the customers to avail of a host of privileges, benefits and exclusive rewards. It is promoted proactively through conventional media. The company has decided to tap the upcountry and semi-urban markets and about 30 35% of the rural base with a distinct product positioning. The company is aggressively cutting costs and is indigenizing most of its manufacturing activities. In the future there will be continued pressure on profitability and sustaining the market share will be a daunting task. Towards this end the company has to be consistent in launching successful new products at regular intervals. It also remains to be seen if it can prevent erosion in market share to new competitors such as Bajaj and TVS Suzuki. While the parent has set up a 100% subsidiary in the country, HMSI will manufacture only scooters till 2004, while HHML will continue to manufacture only motorcycles till the year 2004, after which the both the companies will be free to foray into any 2wheeler segment. HHML has technical collaboration with Japanese partner Honda Motors till 2005, and with the launch of new products the outgo in terms of promotional and collaborator expenses will also rise thereby initially affecting the profit margins. The company pays a royalty of Rs200 per motorcycle for product range upto Splendor and also for the incremental technology introduced. For other models the incremental royalty payments range from 3 % to 5 % and are valid for a specific period.

Chapter-4
RECOMMENDATIONS & CONCLUSIONS

RECOMMENDATIONS

We recommend following suggestions on the basis of our study: 1. Increase the marketing budget 2. Improvement of dealer services as their standards are not uniform 3. Tie up with an international companies for future product launches 4. Launching of a bike in a premium segment as we feel it is where the future lies 5. Money to be spend on customer centric promotions 6. Need to focus on individual brands than umbrella branding 7. We suggest company to target youth between 16 to 25 yrs.

CONCLUSION
(1) There is a preference of executive segment of bikes has been observed in the
metros .

(2) More than 90% of the bike owners are satisfied with the performance of their
bikes.

(3) The major reason for among the least number of dissatisfied owners is the
maintenance cost which they bear. Dissatisfaction.Majority of the customers want to have some incentives with the purchase of the bike.

(4) There is a preference of executive segment of bikes has been observed in the
metros .

(5) More than 90% of the bike owners are satisfied with the performance of their
bikes.

(6) The major reason for among the least number of dissatisfied owners is the
maintenance cost which they bear. dissatisfaction Majority of the customers want to have some incentives with the purchase of the bike.

ANNEXURE
QUESTIONNAIRE

NAME:->-------------------------------------------------------------------ADDERESS:>---------------------------------------------------------------------------------------------------------------------------------------------AGE:->-------------------OCCUPATION:->----------------------------------------------------------

Q1:->Which type of bike do you have? (A) Performance bike (B) An average bike

Q2:->Please select your main purpose of using a bike? (A) Business (C) Leisure (B) Personal (D) Status

Q3:->Would you like to change your bike from any other companys bike in the same Segment? (A) Yes (C) No Q4:->Would you like to change the segment of your bike? (A) Yes (B) No Q5:->Are you satisfied with the performance of your bike, if Yes or No? Why?

Q.6 Wich bike do you prefer? (A) Hero Honda (B) Bajaj (C) Others (specify) Q7->Are you satisfied with the services Provided to you by the company, if Yes or No? Why?

Q8:->Which facilities would you need ? (A) Low Price (B) Service Station (C) Incentives (D) Others

Q9:->Do you get spare-parts of your bike easily from the market ? (A) Yes (B) No

Q10:->What are your main preferences while buying our products ? (A) Brand (B) Price (C) Features (D) Service (E) Dealers advice (F) Promotion schemes Q11:->Would you like to purchase the products of our company in future ? (A) Yes (B) No Q.12 What is your preference of bikes in indian bike industry? Q.13 What is your favourote status of bikes among the two companies?

BIBLIOGRAPHY
BOOKS 1. KOTHARI C.R. , RESEARCH METHODOLOGY NEW AGE INTERNATIONAL PUBLISHERS , 2003.

2. KOTLER PHILIP , MARKETING MANAGEMENT , PRENTICE HALL OF INDIA , 2003.

3. AAKER . A. DAVID , ADVERTISING MANAGEMENT , MC GRAWHILL PUBLICATIONS , 2003.

4. GUPTA , ADVERTISING MANAGEMENT , TATA MC GRAWHILL , 2003.

JOURNALS 1. COMPETITION SUCCESS REVIEW. 2. HERO HONDA AND BAJAJ OUTLETS.

WEBSITES
(1) (2) (3) (4) (5)

www.herohonda.com www.bajajauto.com www.rediff.com www.google.com www.yahoo.com