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bDissertation Report
ON“What A Consumer Wants From Power
Segment Bikes” [150cc and Plus]A Study done at:->> Karnal,
SUBMITTED TO:-
Kurukshetra University, Kurukshetra
In partial fulfillment of the requirementFor the degree of
MASTER OF BUSINESS ADMINISTRATION
(M.B.A.)
(SESSION 2003-2005)
Preface
Management ideas without any action based on them mean nothing.
That is why practical experience is vital for any management student.
Theoretical studies in the classes are not sufficient to understand the
functioning climate and the real problems coming in the way of management
of Men, Material, Machine and Money. So practical exposures are
indispensable to such courses. Thus practical experience acts as a supplement
to the classroom studies. It offers an exposure to real practical of
management in various organizations. It exposes invaluable treasures of
expenses to a student.
This dissertation deals with the application of theory to know the role
of dealers in consumer buying behavior & customer satisfaction, through
market survey & research. It was my fortune to do this dissertation. I learned
a lot of new things which could never been learned from the theory classes.
This dissertation report is a presentation of my work.
In the forthcoming pages, an attempt has been made to present a
comprehensive report concerning different aspects of my dissertation, the
overall knowledge gained by me will reflect in the report itself.
Shamsher
singh
ContentsACKNOWLEDGEMENT
PREFACE
Chapter 1 INTRODUCTION
Chapter 2 OBJECTIVE OF STUDY
Chapter 3 CONSUMER BUYING BEHAVIOUR
Major Players & Product Offered Customer Satisfaction Customer Expectations
Chapter 4 INDUSTRY PROFILE
Introduction Participants of Two Wheeler Segment Growth of Two Wheeler Industry
Chapter 5 RESEARCH METHODOLOGY
Problem identification Scope of Study Research Design Sampling Plan Method Of Data Collection Sources Of Data Collection Limitations
Chapter 6 DATA ANALYSIS
Chapter 7 MAJOR FINDINGS
Chapter 8 DATA INTERPRETATIONS
Chapter 9 RECOMMENDATIONS & SUGGESTIONS
Chapter 10 CONCLUSION
ANNEXURES:--
Questionnaire
Bibliography
Chapter 1
INTRODUCTION
INTRODUCTION
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 customer’s opinions, needs, and
preferences. This helps the company to manufacture the product like wise for
each customer’s expectations.
It has now become more important for the customer confidence and
higher positioning of buyer perception. Thus, Surveys becomes genuine key
to success.
MOTORCYCLE
The motorcycle segment is dominated by 4 major players viz. HERO
HONDA, BAJAJ, TVS, ROYAL ENFIELD. Besides there are players like:-
HONDA(itself alone), LML,KINECTIC. The market share of each of the
player is as given below.
Near 70% of the motorcycle sales is from Indi-Japanese motorcycles
and rest coming from Indian motorcycle manufacturers. The Indo-Japanese
segment is catered by 4 to 6 models from each of the players viz. . HERO
HONDA, BAJAJ, TVS, ROYAL ENFIELD etc. But majority of sales is of
100cc to 125cc motorcycles. The Indo-Japanese motorcycles are costlier due
to import content and royalty payments to their Japanese collaborations. But,
These motorcycles are far ahead of Indian Manufacturers viz. Rajdoot from
EYML, Yexzdi from IDEAL JAWA; in terms of technology and fuel-
efficiency.
MARKET SHARE IN THE MOTORCYCLE SEGMENT
Sources:-- SIAMINDIA
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 2 to 3 years, the craze for motorcycle over the scooters has
picked up and one can find today even girls craving 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
customer profiles. With the competition hotting up one can find a host of
discounts including: cash rebates and free accessories to push sales of the
HERO HONDA 46.8%
HONDA 3.2%
TVS 9.4%
BAJAJ 24.6%
ROYAL ENFIELD 2.8%
LML 9.2%
KINETIC 4%
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 100cc plus bikes is suddenly discernable and the segment is expected
to double in the next year itself.
Manufacturers are now rushing in to introduce bikes in this segment.
Bajaj had recently launched a spruced up version of its Caliber and is also
planning to upgrade the Pulsar-Dtsi higher on the power ladder. Hero Honda
is also upgrading its line-up to keep pace with the shift in demand by
launching: Ambition 135, CBZ star, Karizma etc.
But it’s not yet end of the road for the basic entry-level bike. We are
witnessing segmentation in the bike market, like the Bike market. The entry
level model will continue to be a high-interest segment for the aspirants.
Against this backdrop, the present project work has been undertaken.
With the focus of the consumer shifting to brand and product features, the
project is a study aiming at understanding what does a customer wants from
Power segment bikes(150cc & plus).
Chapter 2
OBJECTIVES OF
THE STUDY
Objectives of the
project study
1. To study the rapid changing perception of consumers towards power
segment bikes.
2. To study the satisfaction level of consumers, who uses bikes.
3. To study effect of advertisement on the purchases decision of the
consumers.
4. To study the main factor that most influence the consumer to buy a
bike.
5. To study the brand preferences of buyers.
6. To study the factors influencing consumers to buy power bikes.
Chapter 3
CONSUMER
BUYING
BEHAVIOUR
CONSUMER
BEHAVIOR
(In today’s challenging & competitive world of fast changing
technology, consumer tastes are also characterized by fast changes. So, to
survive in the market, a firm has to be constantly innovating and understand
the latest, consumer trends, tastes and preference. Consumer behavior
provides invaluable dues and guidelines to market on new technological
frontiers, which they should explore. It is realized by studying the buying
behavior of consumers that many consumer products that they felt reflected
their own special needs, personalities and lifestyles. To better meet the needs
of specific groups of consumers, most marketers adopted a policy of market
segmentation & successfully market to different segments the marketing
manager needs appropriate marketing strategies, which he can design only
when he can understand the factor, which account for these difference in
consumers behavior.
The most important reason for studying consumer behavior is the
significant role it plays in our lives. It plays a vital role in decision-making.
As consumer significantly affected certain decision's behavior or expected
actions. So, consumer behavior is said to be an applied discipline. Such
applications can exit at two different levels of analysis. The Micro
Perspective & Societal perspective. The micro perspective involves
understanding consumers for the purpose of helping a firm or organization
accomplish its objectives. The societal perspective can provide insight into
aggregate economic & social trends and can perhaps even predict such
trends. It may suggest ways to increase the efficiency of the mkt system &
improve the well being of people in society.
Consumers Behavior can be defined as –
"The behavior that consumer display in searching for, punching,
using, evaluating and disposing of products & service that they expect will
satisfy their needs.”
The decision process & physical activity individuals engaging
when evaluating, acquiring, using or disposing of goods and services. A
consumer plays a no, of roles in purchase decision. The study, of consumer’s
behavior would be incomplete if it treated only one consumer role. Some
consumers Behavior role are
ROLE DESCRIPTION
Initiator The individual who determines that some or need or
want is not being met & authorize to rectify the
situation.
Influencer A person who by some intentional or unintentional
word or action influences the purchase decision, the
actual purchase and the use of the product or service.
Buyer The individual who actually makes the purchase
transaction.
User The person most directly involved in the
consumption or use of purchase.
Thus, the importance of CB lies in the fact that behavior can be under-
stand & influenced to ensure a positive purchase decision. So, a round
understanding of CB is essential to the long run success of any marketing
program. In fact, it is seen as a cornerstone of the marketing concept. That's
why the marketing managers interest lies exactly to ensure that his marketing
strategy result in purchase of the product.
MODELING BEHAVIOR
The study of consumer behavior is quite complex, because of the
many variable involved and their tendency to interact with and influence each
other. So, the most relevant variables and their influence can be shown by a
diagram, which is made up of three major sections.
1. External environment variable influencing behavior.
2. Individual determinants of behavior.
3. The consumer's decision process.
1. EXTERNAL VARIABLE:
The external environment is made up various influences as culture,
subculture, social class, social group, family and personal influences.
I) Culture:
The study of culture encompasses all aspect of a society such as its
religion knowledge, language, laws, customs, tradition, music, art,
technology, work pattern, products etc. for the purpose of CB culture
can be defined as the sum total of learned beliefs, value & custom that
serve to guide and direct the consumer behavior of members of a
particular society. Thus, the concept of culture offers many general &
specific insights into the behavior of consumers. So, it is a starting
point for the marketer who wishes to better understand a market.
a) Formal learning:
In which parent an elders teach children the proper way to behave &
this behavior influence his attitude towards the products.
b) Informal learning: In which learning takes place by imitating the
behavior of the parents, friends or by watching TV & film actors in
action.
c) Technical Learning: In which instruction are given about the specify
method by which certain things have to be done such as painting,
dancing etc.
II) Subculture: These groups posses beliefs, values and customs that set
them apart from other members of the same society or culture. So,
there are subculture of students, Professors, marketers, & other group.
An individual may be member of more than one subculture at the same
time, and based upon it consumer’s behavior like product purchase
Patterns, Shopping behavior &: other Demographic & Psyographic
characteristics may differ. Thus, it .is imperative that marketers
understand who constitutes the most relevant subculture for their
particular or service.
III) Social Class Influences : Social class is defined as the division of
members of a society into a hiearchy of distinct status class, so that
members of each class have relatively the same status class, so that
members of each class have relatively the same status & members of
all other classes have either more or status. In this complex society, in
which financial wealth dictates status, one's possessions become a
substitute indicator of the individual worth value, wealth & so forth.
Members of specific social class differ in terms of what they consider
good taste. So, social class is also an important variable in determining
where a consumer shops. That's why marketers have always catered to
give them an edge, whether real or imagined, over their pears.
IV) Social Group Influences: It can be viewed as a collection of people
who have a sense of relatedness resulting from some form of
interaction with one another. There are different types of reference
groups & each group has its own status, norms, role, socialization &
power.
REFERENCE GROUPS :
It refers to group that serve as trams of reference for individual in their
judgment, beliefs, purpose & consumption behavior. These reference
groups are highly relevant and potent influence in consumer’s
decision-making. To attract consumers a no of promotional strategies
are used & one of them is Reference group appeal. There are helpful in
increasing: brand awareness & serve to reduce perceived & guide the
individual value & behavior.
V) Family:
The family is a major influence on the consumption behavior of its
members; it is also the prime target market for most product categories.
Familiars can be defined as two or more person related by blood,
marriage or adoption that reside together. The basic function of a
family is the provision of economic & emotional support; childhood
socialization & a suitable life style for its members of consumer’s
related role of family members include influences, gatekeeper,
deciders, buyers, users, maintainers & disposers. Thus, the family
operates an economic unit, earning & spending money & the family
functions directly in the role of ultimate consumption. Each family
member influences the purchase decision. Family members have
individual and collective consumption priorities. Thus, the marketers
need to understand the nature, the family's influence on its members &
the way in which the purchase decision are made by the members. The
stages of a family's life cycle also influence the consumer behavior.
VI) Personal factor/influence:
(a) Demographic factor & life cycle stage: The first factor influence a
buyer's decision is his age. There are certain physiological difference
between men & women, which result in there having different
consumption needs.
The consumption behavior is also influenced by the specific stage of
the family life cycle, which are as follows-
Single stage (Young unmarried people living away
from home)
Young newly married (no children)
Full nest I (Youngest child under 6)
Full nest II (Youngest child over 6)
Empty nest I; older (married couples, no children
living at home, house hold head still working)
Solitary Survivor - In (Labour Force)
Solitary Survivor: Retired.
b) Education & Occupation: Education widens a person's horizon,
refines his tastes and makes his outlook more cosmopolitan. An
educated person as compared to somebody less educated is more likely
to consume educational facilities, books, magazines and other
knowledge oriented products and services. The occupation also shapes
the consumption needs. Some people require specialized equipment for
the purpose of their job.
c) Income: Income here means the income available for spending (i.e.
income after tax, provident fund and other statuary deduction). The
person's attitude towards spending versus saving and his borrowings
power are also important influencing factors.
d) Personality: Personality is defined as those inner psychological
characteristics that both determines and reflect how a person responses
to his environmental stimuli. Personality is enduring and ensures that a
person’s responses are consistent over time.
e) Life Style: Life styles are the pattern in which people live, as
expressed by the manner, in which they spend money and time on
various activities and interests. It is a function of opinion, social class,
demographic factors and personality etc.
f) Other Influences: This is the general category encompassing
influences on consumers. The influence might be the effects of media
i.e., whether consumer's behavior is more influenced by print media or
the electronic media. Other influences including physical surroundings,
the interpersonal setting, national events and other situational
variables.
2. INDIVIDUAL DETERMINANTS OF BEHAVIOR:
These variables influences how the consumer proceeds through a de-
cision process regarding products and services. The various individual
determinants are :
a) Consumer needs and motivation: Consumer has different needs and
attitudes towards any good and services and they accept different
goods or services with the expectation that they will satisfy their needs.
Motives are the internal factors that energize behavior and provide
guidance to direct the activated behavior. Involvement describes the
personal relevance or importance that consumer perceives in a given
purchase situation.
b) Perception: Perception can be defined as "how we see the world
around us;" Perception helps to explain the phenomenon of why
different individual responds definitely to the same stimulus under
same conditions.
c) Learning and Memory: Learning can be viewed as very significant
for marketer as it implies that consumers can be made to learn the
desired behavior through an interplay of motives stimuli, cues,
responses and reinforcements. Learning refers to the skill and
knowledge gained from part experience, which one tends to apply to
evaluate future decisions learning and memory processes can help to
understand that war frequency is needed to repeat, advertising
messages, how visual symbols and other techniques can facilitate
consumers learning and memory regarding products and how
consumer develop habitual purchase pattern for some goods.
d) Beliefs and Attitudes: A belief is a descriptive thought that a person
has about something. The belief may be based on some real facts or it
may merely be a notion or opinion that the person has. Attitude is a
person's enduring facing evaluation and tendency towards a particular
idea or object Attitudes strongly influence how consumers will act and
react to products and services and how they will respond to
communication that marketers develop to convince then to purchase
their products.
Thus, there were the various factors, which influence the consumer
behavior.
Types of Purchase
decision Behavior:
CB changes depending upon the nature or type or buying gives rise to three
types of buyer behavior:
a) RR (routinized response) behavior.
b) LPS (Limited problem solving) behavior.
c) EPS (Extended problem solving) behavior.
1. R R behaviors:
It occurs where there is low product involvement, the consumer known
the brands available and criteria of choice and the stakes are not so
high in terms of price, e.g. bread, pastes, soaps, soft-drinks etc. here the
consumer expect a consistent quality in the product. New customers
are drawn by sales promotion and product improvements.
2. LPS behavior: When the consumer knows the brands available but
still needs additional information to make a correct choice.
3. EPS behavior: When new product category comes on the scene. Here,
extensive information is needed on both the product category and the
brand being made available.
Major Players and Products Offered
As India is very potential market for two-wheeler. There are a number
of players competing with one another. In the mean time, there are 5 major
players fighting for an approx. two wheelers market of 50.18 lakh two-
wheelers annually. The structure of the industry has changed during the last
decade with a number of small companies being taken over by major players.
But, the competition has just begun to hot up with coming up of MNCs. The
major players are as follows:
1) HERO HONDA
Hero Honda has a reputation of being the most fuel-efficient and the
largest selling Indian motorcycle. Its commitment of providing high value
products at reasonable prices, led the world’s largest manufacturer of
motorcycles to collaborate with the world’s largest bicycle manufacturer.
It was this affinity in working cultures of HONDA Motor Company of
Japan and the HERO Group, that resulted in the setting up of the HERO
HONDA MOTORS LTD.
It’s main models are:
Commuter Bikes:-- * CD 100 * Splendor * Passion * CD-Down
Power Bikes:-- * Ambition 135 * CBZ * Karizma
2) BAJAJ
It is one of the Indian’s top 10 companies in terms of market
capitalization and among the top 5 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. It then obtained a production license in 1959
and struck a technical collaboration with PIAGGIO of Italy in 1960.
Now, it offers its offerings in all segments viz. mopeds, scooters,
scooterettes, motorcycles, three wheelers etc.
It’s main models are:
Commutor Bikes:-- * Caliber * CT100 * 4S Champ * Boxer
Power Bikes:-- * Pulsur * Pulsur-Dtsi * Discover * Eliminator
3) LML
LML is one of the leading scooter manufacturer in the country, with
a 30% market share in volume terms with its popular scooter brand
‘Supremo’. It plant to facilitate authorized dealers with a
WAN(Wide area Network).
Now, as the trend is changing very fastly from scooters to bikes
from 2000, LML also entered into the field of bikes manufacturing.
It’s main models are:
Commutor Bikes:-- * Energy * Adreno
Power Bikes:-- * Graphtor
4. TVS
TVS is also a leading two-wheeler company began under with the
vision of the founder of the Sundaram Clayton Group the late Mr.
T.S.Srinivasan to design, develop and produce an affordable moped for
the Indian family.
Alongside the economy two wheeler range, it has constantly worked on
innovations in its motorcycle segment also. TVS continues to keep one
step ahead of its time by creating India’s first % speed gears bike.
It’s major models are:
Commutor bikes:-- * Suzuki Max 100 * Suzuki Max R * Suzuki
Samurai
Power Bikes:-- * Fiero * Fiero2
5. ROYAL ENFIELD
Established in 1955, Royal Enfield Motors is now a part of the Eicher
Group of companies- a Rs.10 billion conglomerate.
Royal Enfield’s corporate philosophy is built around quality and
unflinching loyality to the customer. It too from time to time by its
innovation introduced new bikes to maintain customer loyality.
It’s major models are:
Power Bikes:-- * Bullet STD12V * Bullet 500 * Bullet Machismo
6. KINETIC
Kinetic engineering Ltd. Is founded in the year 1970, is the leading
manufacturer and exporter of 2- wheelers. Born of the vision of late
Mr. H.K. Firodia, Kinetic Engineering Ltd; has produced very useful
bikes for over 2 decades.
It’s major models are:
Commuter bikes:- * Challenger * Beamer
7. HONDA
HONDA ,Japan is the world’s largest motorcycle manufacturer in the
world. It had already a collaboration with the HERO group,India to produce
bikes in India. Now, It launches its own bikes in India on its own too. Honda
group is the leading motor cycle company in terms of manufacturing and
latest technology.
It’s main model is :
Power Bike:-- * Unicorn
Customer
Satisfaction
“ Satisfaction is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s 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 prefrence. The result is high customers loyality.
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 person’s feeling of pleasure and disappointment
resulting from compairing a product’s perceived performance in relation to
his or her expectations. It is only the customer delight that marketer aims for.
Customer
Expectations/ Wants
“How do Buyers form their expectations? “ Their expectations are
influenced by their past buying experience, friend’s and associate’s advice,
and the marketer’s and competitor’s information and promises.
In 2-wheeler industry dealers are the main bridge between the
company and the customer. They come into the direct contact with customer.
So, they play an eminent role in providing customer satisfaction.
Though customer expectations is a very qualitative term and it is very
difficult to measure. In this study an effort has been made to measure the
customer expectations level. We can broadly divide the customer
expectations into 2 parts:--
Primary Expectations
Secondary expectations
Primary Expectations:--
The basic or primary expectations of the customer from a bike is :
Price
Safety level
Brand Name
Fuel- Efficiency
Technical Collaborations
Warranty terms
Secondary Expectations:--
The Secondary expectations of the consumers from bikes are:
Availability of spare parts
Financing schemes
After- sale services
Allied services
Response times to complaint
Now, as secondary expectations of the customers while purchasing a
power bike is a very wide and subjective terms. So, we are keeping the
Secondary expectations away from the scope of our study.
We are taking into a/c only the primary or basic consumer’s
expectations.
Chapter 4
INDUSTRY
PROFILE
INTRODUCTION
In 1855, Otto Daimler, a German inventor, presented the world with
the first motorcycle. It was a far cry from the sleek model we see today. The
first motorcycle was a clanking contraption that had a 4-stroke engine and
was chain- driven. That year, Daimler’s contemporary, Benz invented the
first petrol driven Bike.
Little known to many, motorcycles on Indian roads have a
distinguished parentage. The Enfield bikes hails from England, where it came
into prominence as a wartime vehicle. The JAWA made its way into INDIA
from the Iron Curtain in Czechoslovakia.
However the Yamaha is almost an exact replica of its counterpart in
Japan. The short-lived Zundapp venture saw German- bred Fury bikes hit the
Indian roads about 5 years ago. And almost all scooters on Indian roads trace
their roots to Italian models that were popular in the 1950’s.
The Ind-Suzuki (later TVS-Suzuki) was the first bike to start off what
is known as the 100cc revolution in the country? The Indi-Suzuki’s launch in
the mid 80s saw a quantum leap in India’s 2 wheelers population as
Honda’s, Suzuki’s, and Yamaha’s roared onto the roads in their Indian
avatars.
Bajaj Motors are the second largest manufacturers of scooters in the
world, in addition to being the largest manufacturer of 2-wheelers in India?
The Bajaj group has got models in the 3 key segments of the two-wheeler
market, namely motorcycles, scooters and step-thrus. The down turn in Asian
economy in 1998 has led to a shrink in the works 2-wheeler sales as Asia
accounts for a major portion of sales.
PARTICIPANTS OF 2-WHEELER
SEGMENT
1. Scooter
2. Motorcycle
3. Moped
1) Scooters
The scooter segment can be further classified in to the geared and the
ungeared scooter segment. Geared scooters are generally metal bodies
while the ungeared ones come in plastic bodies. The demand for the
geared scooters is primarily from the middle aged group who have a
family to look after. They would look out for the utility value of the
vehicle. The demand for the geared scooters is price sensitive as
compared to motorcycles. The demand for gearless scooters is mainly
from the women, teenagers, students etc.. They are basically easy to
ride and handle.
2) Motorcycle
The motorcycle is being increasingly used by the youngsters in urban
areas and the rural folks as a sturdy means of personnel transportation.
Bigger wheels, better road grip, high ground clearance, power, fuel
efficiency and low maintenance costs are the major attractions of this
segment. The motorcycle segment, too, can be further classified into
Japanese and Indian motorcycle segments. The former consists of
models manufactured out of Japanese technology , while the later
consists of the high- powered bikes of the ‘ Rajdoot’ and ‘Bullet’
range.
3) Mopeds
Mopeds are the entry level vehicles. The demand for the mopeds is
predominately from lower to middle income families, who graduate
from bicycle to motorized vehicle and also among college students.
GROWTH OF TWO WHEELER INDUSTRY
India is the second largest manufacturer of two wheelers in the world.
It stands next only to Japan and Chine in terms of the number of two
wheelers produced and sold respectively. India is one of the very few
countries manufacturing three wheelers in the worlds. It is the world’s
largest manufacturer and seller of three wheeler.
The two wheelers market has had a perceptible shift from a buyers
market to a seller market with a variety of choices. Players will have to
complete on various fronts viz pricing, technology product design,
productivity, after sale service, marketing and distribution. In the short term,
market shares of individual manufacturers are going to be sensitive to
capacity, product acceptance, pricing and competitive pressures from other
manufacturers.
All the three segments, motor cycles, scooters and mopeds have
witnessed capacity additions in the last one year and it will continue in the
upcoming period as an when Honda opens a local subsidiary. Over this
period, only the motorcycle segment is expected witness higher demand vis-
à-vis supply, while the scooter and mopeds supply will outstrip demand.
The Indian two-wheelers industry can be broadly classified into three
major segments scooters, motorcycles and mopeds. The domestic two
wheeler sales of 3.778mm in FY2000 constitutes scooter sales of 33.4%(39%
inFY99), motorcycle 47.7%(41% inFY99) and moped 17.6% (20% in FY99).
The motorcycle segment has gradually increased its presence from 27% in
FY92 to 47.7% in FY2000 mainly at the expenses of the scooter and, to some
extent, the moped segment Now 78.5% in FY03).
The demand for scooter is on the wane and witnessed a 10% yoy fall
in FY 2000. Than 40% YOY fall in 03, With the gradual shift in demand,
sales in the scooter segment is expected to fall further, while on the other side
motorcycle and scooterette segments will record continued growth in the
future. This will translate into a demand fall of around 20% in scooter while
sales of scooterettes will rise by around 30% inFY01. With the ongoing
expansion from Bajaj Auto Ltd., LML and TVS Suzuki, the capacity in the
sector will increase from 2mm in FY 2000 to 2.15mm by FY01, leading to a
surplus situation.
We expect the motorcycle segment to continue to grow at an average
of 20% in FY05. This will increase demand for motorcycles from
1.796mmin FY2000 to 2.15mm inFY01. The supply of motorcycles as per
the present trend will increase from 2.08mm inFY2000 to 2.38mm in FY01.
The segment will be witnessing several new entrants in FY05, mainly in the
four stroke sub-segment like Suzuki, Dokuti etc. This will lead to an over
supply situation and increase the competition in the Japanese segment.
We expect the demand for mopeds to grow at a modest rate of 5% in
FY01. The demand for mopeds will increase from 0.726mm in FY2000 to
0.7623mn in FY01. The moped production capacity is expected in increase
from 1.17mn in FY2000 to 1.2mn in FY01.
As incomes grow and people feel the need to own a private means of
transport, sales of two wheelers will rise. Penetration is expected to increase
to approximately to more than 25% by 2005 end.
RESEARCH
METHODOLOGY
The term research methodology comprises of all research activities. It
includes various type of research such as marketing analysis, consumer
research and advertisement research. This research study will be an analytical
research study, with help of analytical research, consumer behaviour of motor
bike users can be analysed of facts already available.
This research include:
Problem identification
Scope of study
Objective of study
Research design
Sampling plan
Method of data collection
Sources of data collection
Limitations
1. Problem Identification:
Marketer should be aware of the perception of customer about his
product so that he can gain maximum out of it. He should be aware of who is
decision maker as well as ultimate bayer of product.
2. Scope of study:
The scope of this study is kept within the control of individual
researcher. A200 motor bike customer are interviewed regarding the buying
behaviour of motor cycle. (100+100 = YNR + KNL).
3. Research Design:
The method adopted for research is “Experience Survey” i.e. survey of
people who have practical experience of motorbike in Karnal, YNR in such a
research design the decision regarding what, where, whom, how much, by
what means are concerned. It is the blue print for the research undertaken.
Measurement and Scaling Technique for Research:
In this research the rating scale technique is used. Rating scale involves
qualitative description of a limited no of aspects of thing or of traits of a
person. In rating scale we judge properties of objects without reference with
other similar object. Those ratings may be in such as form as:
Like - deslike – above average – average- below average
Or
Excellent – good- average- below average – poor
The ranking can be done by graphic rating scale as:
Like very much
Like some what
Natural
Dislike some what
Dislike very much
So for research of consumer behaviour of youth male for motorcycle can
be analyze by knowing the rating they are given to their own or other motor
bike in market.
5. Sampling Plan:
It includes sample unit, sample size, sample procedure.
Sample Unit: Sample unit is target population of Karnal, who can afford to
buy motorcycle or own motorcycle.
Sample size: Research is done on 200 respondents of Karnal and YNR.
6. Method of data collection:
Observation method
Questionnaire method
Data collection through journal, magazines
Data collection throuth websites of various Co's related,& bike expert
companies.
7. Sources of data collection:
Primary sources: Sample survey of target population
Secondary sources: Company pampheletes, different journal such as
A+M, Business magazine as business world, business India, industry
manual and web sides.
8. Limitations of Study:
Resources for collection of data are less.
Time period for data collection is short
Difficult to get response from customer.
Experience in field of research is difficult job.
Shortage of time and money.
NO. OF TWO WHEELERS OWNED
No. of Two Wheelers %age
One 65
Two 23
Three 9
More than three 3
Table 1
This table and chart exhibits the no. of two wheeler owned by the
respondents. It is clear from the above presentation that most of the consumer
i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more
than 3 vehicle.
TYPES OF VEHICLES
Type of Vehicles %age Respondents
Motor Cycle 29%
Scooter 46%
Scooty 18%
Moped 7%
Table 2
This table and chart exhibits the no. of two wheeler owned by the
respondents. It is clear from the above presentation that most of the consumer
i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more
than 3 vehicle.
AWARENESS OF TWO WHEELER BRAND AVAILABLE IN THE MARKET
Aware %age of Respondents
Fully Aware 43%
Less Aware 49%
Unware 8%
Table 3
These table and chart shows the awareness of two wheeler brand available in
the market. In exhibit that 49% of consumer are less aware about two
wheeler’s brand and 43% consumers are fully aware. While 8% consumer
are unaware about the brands of two wheelers available in the market.
SWITCHABILITYOF CONSUMER
Switchability %age Respondents
Yes 17%
No 83%
Table 4
This table and chart shows the switch ability of consumers regarding two
wheeler. It shows that 83% of consumer are brand loyal and only 17%
consumer goes for another option.
SATISFACTION LEVEL OF CUSTOMER
Satisfaction Level %age Respondents
Fully Satisfied 79%
Moderate satisfied 7%
Less Satisfied 5%
Net Satisfied 9%
Table 5
This table and chart exhibits the satisfaction level of consumer regarding their
vehicle. It shows that 79% customers are fully satisfy with their vehicle and
9% of consumers are not satisfy with their vehicle.
ROLE PLAYED BY ADVERTISEMENT:
Role %age Respondents
Present Vital Details 38%
Creates Awareness 57%
Misleading 4%
Anyother 1%
Table 6
This table and graph shows the role played by advertisement. It shows that
57% customers replied that it creates awareness for them and 38% replied
that it presents important details about the products while 4% said that
advertisement are misleading.
FEATURES OF TWO WHEELER IN ADVERTISEMENT WHICH ATTRACTS
ATTENTION MORE:
More Rank
Mileage 1
After Sale Service 5
Attractive Colour 2
Excellent Pick up 4
Easy Starting 3
Any Other 6
Table 7
This table and graph shows the exhibits the features of two wheeler in
advertisement attracts their attention more. First rank is given to mileage
followed by attractive colours is starting excellent pickup etc. and last rank is
given to any other features like comfort driving. Luggage space etc.
INFLUENCE OF ADVERTISEMENT ON PURCHASE DECISION
Decision %age Respondents
Yes 46%
No 54%
Table 8
This table and chart shows the influence on purchase decision. It clearly
predicts that 54% customers replied that advertisement has no influence on
purchase decision while 46% replied that it influence purchase decision.
AGE GROUP OF CONSUMERS
Age Group %age Respondents
18-25 42%
26-40 47%
41-55 9%
56 & above 2%
Table 9
This table and chart shows the age of group of customers It shows that 47%
consumers are lie in the age group of 26 to 40 years followed by 42% in age
group of 18-25 years and less percentage i.e. 2% lie in the age group of 56
years and above.
CUSTOMERS OCCUPATION
Occupation %age Respondents
Students 38%
Business Person 19%
Service Person 23%
Professional 11%
Agriculturist 7%
Any other 2%
Table 10
This table and chart exhibits the customers occupation. It shows that 38%
customers are students followed by service person i.e. 23% and only 2%
belongs to other e.g. housewives etc.
SEX OF CUSTOMERS
Sex %age Respondents
Male 67%
Female 33%
Table 11
This table and chart shows the sex of the customers. It shows that 67% are
male while 33% are female customers.
INCOME GROUP OF CUSTOMER
Income (yearly) in Rs. %age Respondents
Below 60000 21%
60001 – 100000 37%
100001 – 150000 30%
150001 & Above 12%
Table 12
This table exhibits the income group of customer. It shows that 37%
consumers are of the income group of Rs. 60001 to Rs. 100000 followed by
income group Rs. 100001 to Rs. 150000 and veryless belong to the income
group of Rs. 150001 and above.
FINDINGS
The findings of the study are presented under the following four
headings.
1) Pre-Purchase Analysis
2) Factors influencing brand preferences
3) Brand wise ownership of the sample respondents and
4) Post-Purchase analysis.
1) Pre-Purchase Analysis:
Purchasing is a dynamic science and also the most important function
of every family. A home maker must devote time, attention and energy
to it. It is influenced by certain considerations which lead the
consumers to select a particular brand of products. Besides, the
availability of wide varieties of brands aggravates and complicates the
act of purchasing. As purchasing is complicated involving many
decisions at every step and as each family differs widely in this, it is
felt necessary to study the purchasing habits of consumers in selecting
the brands of Bikes in the study area. It is studied under the headings :
(a) Sources of information
(b) Purpose of purchasing and
(c) Persons influencing purchase decision.
a) Sources of Information:
In this survey an attempt is made to find the sources of information on
which most of the people rely for their purchase decision.
Table 1: Sources of Information for Selecting a Bike
Sources Number of Respondents Percentage
Advertisement 26 13
Sales People 10 5
Relatives 46 23
Friends 118 59
Total 200 100
Source: Primary data
From the above table it could be inferred that out of the 200 respondents, 118
(59%) obtained the information from their friends. Forty six respondents
(23%) got the information from relatives whereas twenty six respondents
(13%) got the information from advertisements. It is interesting to note that
only ten respondents (5%) got the information from sales people.
b) Reasons for buying:
Now-a-days Bikes are considered to be a matter of necessity.
However, some people consider it as a matter of prestige. There are people
who may buy a Bike for the purpose of availing themselves of petrol
allowance or cheap credit facilities. Here an attempt is made to analyse the
reasons for buying a Bike.
Table 2: Reasons for Buying a Bike
Category Number of Respondents
Percentage
Comfort and convenience 146 73Status symbol 30 15Loan Facilities 14 7For Availing Petrol Allowances 10 5Total 200 100
Source: Primary Data
Table 2 shows that out of the 200 respondents, 146 respondents (73%)
have purchased a Bike for the purpose of comfort and convenience, while 30
respondents (15%) have purchased a Bike to use it as a status symbol.
Fourteen respondents (7%) have purchased Bikes for the purpose of availing
themselves to loan facilities. Only 10% respondents (5%) have purchased a
Bike for the purpose of availing themselves to petrol allowance.
c) Person influencing purchase decision:
Decision making is an act of projecting one’s own mind upon an
opinion or course of action. Decision making is a conscious and human
process, involving both individual and social phenomena based upon factual
and value premises, which concludes, with a choice of one behavioural
activity from among one or more alternatives with the intention of moving
towards some desired state of affairs. Hence an attempt is made to find out
the people who influence the purchase decision of a Bike.
Table 3: Decision Makers Regarding Purchase of a Bike
Category Number of Respondents
Percentage
Yourself 20 10
Spouse 16 8
Children 20 10
Collectively 144 72
Total 200 100
Source: Primary data.
Table 3 shows that out of the 200 respondents, a vast majority of them
(72%) took the decision collectively while buying a Bike, whereas 20
respondents (10%) took the purchase decision by themselves. Another 20
respondents (10%) were influenced by his/ her children while taking the
purchase decision. Sixteen respondents (8%) were influenced bytheir spouse
while buying a Bike.
II. FACTORS INFLUENCING BRAND PREFERENCE:
The various factors influencing purchase of a Bike is analysed by
adopting Garret’s ranking technique. The respondents were asked to assign
the rank for the various factors namely, price, safety, brand name, fuel
efficiency, technical collaboration, capacity of the vehicle and warranty
terms.
Table 4: Factors Influencing the Purchase of A Bike
Factor/Rank Number of Respondents Total Respondents
I II III IV V VI VIIPrice 28 22 13 15 64 32 26 200
Safety 23 16 23 69 38 28 3 200
Brand Name 33 61 36 19 20 16 15 200
Fuel
Efficiency
78 30 31 26 20 6 9 200
Technical
Collaboration
12 34 49 27 23 19 36 200
Capacity of
the vehicle
8 22 37 23 15 53 42 200
Warranty
terms
18 15 11 21 20 46 69 200
Source: Primary data
Garret’s Formula:
100(Rii – 0.5)Percent Position = ——————
Nj
Where Rij = Rank given for the ith variable by the jth respondents.
Nj = Number of variable ranked by the jth respondent.
By using this formula, the result obtained was compared with Garrett’s
ranking table and the scores were given. The total scores of each item were
added and ranks were given according to its total value.
Table 5 : Garrett’s Ranking Table
S.N. Factors Score Average Score
Rank
1. Price 9539 47.70 V
2. Safety 10470 52.35 III
3. Brand Name 11336 56.68 II
4. Fuel Efficiency 12393 61.97 I
5. Technical Collaboration 9750 48.75 IV
6. Capacity of the vehicle 8706 43.53 VI
7. Warranty Terms 8013 40.07 VII
Source: Primary data.
It could be inferred from the table 5 that fuel efficiency is the most important
factor influencing the purchase of a Bike followed by brand name, safety,
price and the like.
III. BRAND WISE OWNERSHIP:
Table 6 shows the brand wise classification of sample respondents:
Table 6: Brand Wise Classification of Sample Respondents
Brand Name Number of Respondents
Hero Honda 55
TVS Suzuki 20
Honda 40
Enfield 35
Bajaj 50
Total 200
Source: Primary data.
Table 6 clearly shows that Hero Honda is the most popular brand of
Bike (52%) followed by Bajaj brand (14%) and TVS brand (10%) and the
like.
IV. POST – PURCHASE ANALYSIS:
Consumer decisions do not end with the act of purchase but continue
as the consumer uses the product and evaluates his or her purchase decision.
Consumers tend to judge their experience against their expectations when
performing a post-purchase evaluation. A long as positive reinforcement
takes place, the cvonsumers will tend to continue to purchase the same brand
and recommend the same brand to others as a natural corollary. Such
behaviour at the post-purchase level is often termed brand allegiance. This
brand allegiance is analysed. Through “Consumer satisfaction” and
“recommendation to others”.
a) CUSTOMER SATISFACTION:
Table 7 shows the degree of satisfaction of the sample respondents
with regard to performance of Bike.
Table 7: Satisfaction with their Bikes
Factor No. of Respondents Percentage
Highly satisfied 106 53
Satisfied 94 47
Dissatisfied 0 0
Total 200 100
Source: Primary data.
Table 7 shows that out of the 200 respondents, 106 respondents (53%)
are highly satisfied with their Bikes. Ninety four respondents (47%) are
satisfied with their Bikes.
b) RECOMMENDING TO OTHERS:
It has been already established in this survey that the respondents seek
opinion from the existing users while purchasing Bikes. It is clear (from the
Table 1) that friends and relatives occupy an important place among the
various sources of information available to the respondents. Only a customer
who is fully satisfied with the product, will recommend it to other prospective
buyers. So, an attempt is made in this survey to find the percentage of
respondents who recommend their brand to other prospective buyers.
Table : 8: Recommending the Brand to Others
Factors No. of Respondents Percentage
Yes 200 100
No 0 0
Total 200 100
Source: Primary data.
Table 8 shows that all the 200 respondents (100%) recommend the
brand, which they own to others who are willing to purchase.
SUGGESTIONS
On the basis of the findings, the following suggestions are made:
1) With a view to improve the fuel efficiency of the Bike, the
manufacturers should spend a considerable amount on research and
development.
2) It is suggested that the manufacturers should make all efforts to
control cost reduction.
3) It is suggested that the brand image and brand loyalty could be
boosted by selling quality Bikes at a reasonable price to suit the
needs of middle income group.
CONCLUSIONMost of the respondents of KARNAL & YAMUNANAGAR cities are
aware of many popular brands of Bikes. The customers give more
importance to fuel efficiency than to other factors. They believe that the
brand name tells them something about product quality, utility, technology
and the like. The consumers prefer to purchase the Bikes which offer high
fuel efficiency, good quality, technology, durability and reasonable price.
QUESTIONNAIRE CONSUMER
I am doing a survey and this survey is being conducted in lieu of the partial
fulfillment of dissertation for the degree of M.B.A. and means no business.
In this regard I wish to avail your kind co-operation.
Tick( ) whichever is relevant.
Q.1 How many two-wheelers you have at present?
i) One ii) Two
iii) Three iv) More than Three
Q.2 What type of Vehicle you have?
i) Motor Cycle ii) Scooter
iii) Scooty iv) Moped
Q.3 Which brand/ model of Two Wheeler you Owned?
i) Hero Honda ii) Bajaj
iii) TVS iv) LML
v) ENFIELD vi) HONDA
Q.4 How did you come to know about your brand/model?
i) Through Friend ii) Advertisement
iii) Publicity iv) Any Other
Q.5 Awareness about the two wheeler brand/model available in market?
i) Fully Aware ii) Less Aware
iii) Unaware
Q.6 Reasons for preferring a particular brand/ model?
i) Price ii) Mileage
iii) Resale value iv) Advertisement
v) Look vi) Any other
Q.7 From where you bought you two-wheeler?
i) Showroom ii) Canteen
iii) Previous owner iv) Any other
Q.8 What are the media of Advertisement?
i) T.V. ii) Radio
iii) News Paper iv) Magazine
v) Sign Boards vi) Any other
Q.9 Which media of advertisement is playing a vital role in increasing the
awareness about Two Wheelers?
i) T.V. ii) Radio
iii) Newspaper iv) Magazine
v) Sign Boards vi) Any other
Q.10 If any brand/ company offers any attractive scheme, will you go for
that company/ brand.
i) Yes ii) No
Q.11 Are you satisfied with your Two-Wheeler?
i) Fully Satisfied ii) Moderate Satisfied
iii) Less Satisfied iv) Not Satisfied
Q.12 In your opinion, what role advertisement is playing?
i) Present vital/ Important Details
ii) Creates Awareness
iii) Misleading
iv) Any Other
PERSONAL PROFILE
a) Name ___________________________________________________
b) Place ___________________________________________________
c) Age
i) 18-25 ii) 26-40
iii) 41-55 iv) 56 and above
d) Occupation
i) Student ii) Business Person
iii) Professional iv) Service Person
v) Agriculturist vi) Any other
e) Sex
i) Male ii) Female
f) Income (Yearly Family income in Rs.)
i) Below 60000
ii) 60001 to 100000
iii) 100001 to 150000
iv) 150001 and above
Likert Scaling for
Consumers
1. What type of Vehicle do you have?
1 2 3 4 5
Scooters
Motor-cycles
Mopeds
Scooty
2. Which brand/ model of Two wheeler do youown?
1 2 3 4 5
Hero Honda
Bajaj
TVS
LML
ENFIELD
HONDA
3. Awareness about the Two-wheeler brand/model available.
1 2 3 4 5
Full Aware
Less Aware
Unaware
4. Reasons for preferring a particular brand/ model?
1 2 3 4 5
Price
Mileage
Advertisement
Look
Any other
5. From where you bought your Two-wheeler?
1 2 3 4 5
Showroom
Canteen
Previous Owner
Any other
6. Which media of advertisement is playing a vital role in increasing the awareness of Two-wheelers?TV 1 2 3 4 5
Radio
Newspaper
Magazines
Sign Board
Any other
BIBLIOGRAPHY
BOOKS:-
Philip Kottler : Marketing Management
S.A. Chunawalla : Essentials of Marketing Research
C.R. Kothari : Research Methodology
S.A. Sherlerkar : Marketing Management
Leon. G. Schiffman : Leslie Lazar Kaunk-Consumer Behaviour
James F. Engel & Roger : Consumer BehaviourD.Blackwell
DALIES:-- *Business Standard *Economic Times *Business Line
MAGAZINES:-- *Business World *Business Standard *Indian Journal Of Marketing
PORTALS:-- *www.siamindia.com *www.indiamarket.com *www.automeet.com *www.indiatimes.com *www.google.com *www.autoindia.com *www.overdrive.com *www.herohonda.com *www.bajajauto.com *www.enfieldindia.com *www.lmlindia.com *www.tvsindia.com
REVIEW OF EXISTING LITERATURE
Various surveys and researches have been carried out regarding what a
consumer wants from a bike. Some of them, which I will be taking into
account are
Parmod Pathak, Saumya Singh, does some of the work that had been
already done in this regard and their work was published in Pradigm,
Vol.VIII No. 1 January-June 2004.
Another major contribution had been done byDubey J and Patel R and
their work was published Management Vol. 42 in Indian No.11 (November )
pp. 66,70 Laudon D and Della Bitta Albert do another major contribution.
Parmod Pathak, Saumya Singh reviewed about " What Does A
consumer want from a Bike " dubey J and Patel R reviewed about "Role of
Advertisement : in buying decision of bikes " Auto India and Overdrive India
web sites provides us a lot of information about the various features provided
by various power bikes.
- www.thehindubusinessline.com(how the 150cc mode 1 stake up)
- www.flonnet.com (Bike with milege and power)(150cc plus category)
- Motor Cycle Trader Feb. 03(Power bike changing sunario)
DATA INTERPRETATION
65% have only one two wheeler and very few i.e. 12% have two or
more than two vehicles.
46% of customer have scooter, 29% have motor cycle & 7% have
moped etc.
30% consumer have Hero Honda has favourite brand, 19% Bajaj, 20%
Suzuki, 17% LML & only 3% other brands has Enfield, Yezdi etc.
49% of consumer are less aware about two wheelers brand and 43%
are fully aware, 8% are unaware.
21% of consumer are preffering any brand due to price, 23% due to
mileage, 19% resale, 17% advertisement & 9% looks
67% consumer buy their vehicle from showroom, 18% from previous
owner, 6% from canteen & 9% any other.
The media of advertisement of more attraction are 61% T.V. 12%
Radio,. 7% Newspaper, 9% any other.
The media of advertisement of more attraction are 61% T.V. 12%
Radio, 7% Newspaper, 9% magazine 11% any other.
83% of customer are brand loyal and other 17% go for another brand.
79% customer are fully satisfied, 7% modrate satisfied, 5% less
satisfied and 9% not satisfied.
46% of respondents say yes due to influence of advertisement and 54%
say no.
Customer of 18-25 years have 42% of share in two wheeler market, 26-
40 years have 47%, 41-51 have 9% and rest 56 years above.
38% customers are students, 19% business persons, 23% service
persons, 11% professionals, 7% agriculturist and 2% anyother.
67% customer are male, 33% are female.
21% customer are below income group of 60000, 37% are from 60001
to 100000, 30% are from 100000 to 150000 and 12% above income
groups.
