Project Report of Research

8/6/2019 Project Report of Research

1/39

1

DISSERTATION REPORT

ON

COMPARATIVE STUDY

OF

BAJAJ V/S HERO HONDA

SUBMITED TO SUBMITED BY

Mrs Pushpa Singh Amanpreet Singh

Roll No.83732

BBA VI Semester


2/39

2

CERTIFICATE

This is to certify that Mr. Amanpreet singh has completed his project report titleComparative Study of Bajaj V/S Hero Honda under my supervision. To the best of myknowledge and belief this is his original work and this, wholly or partially, has not beensubmitted for any degree of this or any other University.

Date: AMANPREET SINGH


3/39

3

Vs


4/39

4

ACKNOWLEDGEMENT

The research on Comparative Study between Bajaj and HeroHonda has been given to meas part of the curriculum in 2-Years MastersDegree in Business Administration.I have tried mybest to present this information as clearly as possible using basic terms that I hope will becomprehended by the widest spectrumof researchers, analysts and students for further studies.I have completed this study under the able guidance and supervision of Mrs. Pushpa Singh willbe failed in my duty if I do not acknowledge the esteemed scholarly guidance, assistance andknowledge. I have received from them towards fruitful and timely completion of this work.Mere acknowledgement may not redeem the debt I owe to my parents for their direct/indirectsupport during the entire course of this project. I also thankful to my friend who helped me a lotin the completion of this project.

AMANPREET SINGH


5/39

5

INDEX

Sr No. Particulars Pageno

1. OBJECTIVES 62. HISTORY OF BAJAJ 7

- Profile- Bajaj Intro- Company History- Timeline of new releases

3. HISTORY OF HERO HONDA 15

C Company Profile

4. RESEARCH METHODOLOGY 25D Data Source

- Research Approach- Sampling unit- Data Completion and Analysis- Scope

5. CONCLUSION 38

6. RECOMMENDATION 397. BIBLIOGRAPHY 40


6/39


7/39

7


8/39

8

Bajaj Auto limited is one of the largest two wheeler manufacturing company inIndia apart from producing two wheelers they also manufacture three wheelers.The company had started way back in 1945. Initially it used to import the twowheelers from outside, but from 1959 it started manufacturing of two wheelers inthe country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle.Bajaj scooters and motor cycles have become an integral part of the Indianmilieu and over the years have come to represent the aspirations of modernIndia. Bajaj Auto also has a technical tie up with Kawasaki heavy industries ofJapan to produce the latest motorcycles in India which are of world class quality

The Bajaj Kawasaki eliminator has emerged straight out of the drawing board ofKawasaki heavy industries. The core brand values of Bajaj Auto limited includesLearning, Innovation, Perfection, Speed and Transparency.Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj andChakan in Maharashtra, western India, which produced 2,314,787 vehicles in2005-06. The sales are backed by a network of after sales service andmaintenance work shops all over the country.Bajaj Auto has products which cater to every segment of the Indian two wheelermarket Bajaj CT 100 Dlx offers a great value for money at the entry level.Similarly Bajaj Discover 125 offers the consumer a great performance withoutmaking a big hole in the pocket.


9/39

9

PROFILE:

Founder Jamnalal Bajaj

Year ofEstablishment

1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

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

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

Joint Venture Kawasaki Heavy Industries of Japan

Registered & HeadOffice

AkurdiPune - 411035IndiaTel.: +(91)-(20)-27472851Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035Bajaj Nagar, Waluj Aurangabad 431136Chakan Industrial Area, Chakan, Pune411501

E-mail [email protected]

Website www.bajajauto.com


10/39

10

Bajaj Autos Ltd.

Bajaj Auto Limited

Type Public

Founded 1945

Headquarters Pune, India

Key people Rahul Bajaj (Chairman)

Revenue Rs. 1,01,063 billion (2006) or USD 1.87billionNet income Rs. 17,016 billion

Websitewww.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and theworld's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, withplants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makesmotorscooters, motorcycles and the auto rickshaw.
http://www.bajajauto.com/http://www.bajajauto.com/http://www.bajajauto.com/http://www.bajajauto.com/


11/39

11

CONTENTS

Company's history: - timeline of new releases

Scooters

Motorcycles

Upcoming Models

New Image

Forbes Global 2000 Ranking2005

External links

References


12/39

12

COMPANY'S HISTORY

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj TradingCorporation Private Limited. It started off by selling imported two- and three-wheelers inIndia. In 1959, it obtained license from the Government of India to manufacture two- andthree-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In1977, it managed to produce and sell 100,000 vehicles in a single financial year.1985,it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicleand produced and sold 1 million vehicles in a year.

Timeline of new releases

1971 - three-wheeler goods carrier1972 - Bajaj Chetak1976 - Bajaj Super1977 - Rear engine Autorickshaw1981 - Bajaj M-501986 - Bajaj M-80, Kawasaki Bajaj KB1001990 - Bajaj Sunny1994 - Bajaj Classic1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)2000 - Bajaj Saffire2001 - Eliminator, Pulsar2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, BajajDiscover DTS-i2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover2006 - Bajaj Platin2007 - Bajaj Pulsar-200Some of the models that Bajaj makes (or has made) are:


13/39

13

Scooters

o Bajaj Sunnyo Bajaj Chetako Bajaj Cubo Bajaj Supero Bajaj Waveo Bajaj Legend

Motorcycles

o Kawasaki Eliminatoro Bajaj Pulsaro Bajaj Kawasaki Wind 125o Bajaj Boxero Bajaj CT 100o Bajaj Platinao Bajaj Calibero Bajaj Discovero Bajaj Avengero Bajaj Pulsar 220 DTS-Fi

o Bajaj Krystal

Upcoming Models

o Bajaj Bladeo Bajaj Sonic


14/39

14

New Image

The company, over the last decade has successfully changed its image from a scootermanufacturer to a two wheeler manufacturer, product range ranging from Scooterettes toScooters to Motorcycle. Its real growth in numbers has come in the last 4 years aftersuccessful introduction of a few models in the motorcycle segment.The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.


15/39

15

India has the largest number of two wheelers in the world with 41.6 millionvehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in thecountry. India was the second largest two wheeler manufacturer in the world starting inthe 1950s with the birth of Automobile Products of India (API) that manufacturedscooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd.surpassed API and remained through the turn of the century from its association withPiaggio of Italy (manufacturer of Vespa).

The license raj that existed between the1940s to1980s in India, did not allow foreigncompanies to enter the market and imports were tightly controlled. This regulatory maze,before

the economic liberalization, made business easier for local players to have a sellers market.Customers in India were forced to wait 12 years to buy a scooter fromBajaj. The CEO of Bajaj commented that he did not need a marketing department, only adispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times itsannual output for scooters.The motorcycle segment had the same long wait times with threemanufacturers; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet withthe only fourstroke engine at that time and took the higher end of the market but, there was littlecompetition for their customers. Ideal Jawa and Escorts took the middle and lower end of themarket respectively.In the mid-1980s, the Indian government regulations changed and permitted


16/39

16

foreign companies to enter the Indian market through minority joint ventures. The two-wheelermarket changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj

Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian marketdynamics from the supply side to the demand side. With a larger selection of twowheelers on theIndian market, consumers started to gain influence over the products they bought and raisedhigher customer expectations. The industry produced more models, styling options, prices, anddifferent fuel efficiencies. The foreign companies new technologies helped make the productsmore reliable and with better quality. Indian companies had to change to keep up with theirglobal counterparts.


17/39

17

Hero Honda Motorcycle Ltd.

Type Public company BSE:HEROHONDA

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarters Haryana, India

Key people

Om Prakash Munjal, FounderMr. Brijmohan Lall Munjal, ChairmanMr. Toshiaki Nakagawa, Joint Managing

Director

Mr. Pawan Munjal, Managing DirectorIndustry Automotive

Products Motorcycles, ScootersRevenue U$ 2.8 billionWebsitehttp://www.herohonda.com
http://www.herohonda.com/http://www.herohonda.com/http://www.herohonda.com/http://www.herohonda.com/


18/39

18

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and

scooters. Hero Honda is a joint venture that began in 1984 between the Hero group ofIndia and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeledmotorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year.Hero Honda's Splendor is the world's largest selling motorcycle Its 2 plants arein Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycle that arelow powered but very fuel efficient.


19/39

19

Contents

Models

Company Profile

Just-in-Time

Dealer Network

Financial Planning

Quality

Diversification

External links


20/39

20

Models

Bikes

Hero Honda Splendor Plus

Hero Honda Passion Plus

Hero Honda Karizma

Hero Honda CBZ

Hero Honda Super Splendor

Hero Honda CD Dawn

Hero Honda CD Deluxe

Hero Honda Achiever

Hero Honda Glamour

Hero Honda Ambition

Hero Honda "Splendor" Model


21/39

21

Company Profile

Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagshipcompany Hero Cycles. The two-wheeler manufacturing business of bicycle componentshad originally started in the 1940sand turned into the worlds largest bicycle

manufacturer today. Hero, is a name synonymous with two-wheelers in India today. TheMunjals roll their own steel, make free wheel bicycle critical components and havediversified into different ventures like product design. The Hero Group philosophy is:To provide excellent transportation to the common man at easily affordable prices and to

provide total satisfaction in all its spheres of activity. The Hero group vision is to buildlong lasting relationships with everyone (customers, workers, dealers and vendors). TheHero Group has a passion for setting higher standards and Engineering Satisfaction isthe prime motivation, way of life and work culture of the Group.

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director ofHero Honda Motors (HHM), headed an alliance between the Munjal family and Honda

Motor Company Ltd. (HMC). HHM Mission Statement is: We, at Hero Honda, arecontinuously striving for synergy between technology, systems, and human resources toprovide products and services that meet the quality, performance, and price aspirations of ourcustomers. While doing so, we maintain the highest standards of ethics and societalresponsibilities, constantly innovate products and processes, and develop teams that keep themomentum going to take the company to excellence in the new millennium. This alliancebecame one of the most successful joint ventures in India, until the year 1999 when HMC hadannounced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This announcementcaused the HHM stock price to decrease by 30 percent that same day. Munjal had to come upwith some new strategic decisions as, HMSI and other foreign new entry companies werecausing increased intensity of rivalry for HHM.

Growth

The business growth of Hero Honda has been phenomenal throughout itsearly days. The Munjal family started a modest business of bicycle components. HeroGroup expanded so big that by 2002 they had sold 86 million bicycles producing 16000bicycles a day. Today Hero Honda has an assembly line of 9 different models ofmotorcycles available. It holds the record for most popular bike in the world by sales forIts Splendor model. Hero Honda Motors Limited was established in joint venture withHonda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largestproducer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006.Recently it has also entered in scooter manufacturing, with its model PLEASURE mainlyaimed at girls. The Hero Group has done business differently right from the start and that is whathas helped them to achieve break-through in the competitive two-wheeler market. The Group'slow key, but focused, style of management has earned the company plaudits amidst investors,employees, vendors and dealers, as also worldwide recognition. The growth of the Groupthrough the years has been influenced by a number of factors:


22/39

22

Just-in-Time

The Hero Group through the Hero Cycles Division was the first to introduce the conceptof just-in-time inventory. The Group boasts of superb operational efficiencies. Everyassembly line worker operates two machines simultaneously to save time and improveproductivity. The fact that most of the machines are either developed or fabricated inhouse, hasresulted in low inventory levels. In Hero Cycles Limited, the just-in-timeinventory principle has been working since the beginning of production in the unit and isfunctional even till date.. This is the Japanese style of production and in India; Hero isprobably the only company to have mastered the art of the just-in-time inventoryprinciple.

Dealer Network

The relationship of Hero Group with their dealers is unique in its closeness. The dealersare considered a part of the Hero family. A nation-wide dealer network comprising ofover 5,000 outlets, and have a formidable distribution system in place. Sales agents from Herotravels to all the corners of the country, visiting dealers and send back dailypostcards with information on the stock position that day, turnover, fresh purchases,anticipated demand and also competitor action in the region. The manufacturing unitshave a separate department to handle dealer complaints and problems and the firstresponse is always given in 24 hours.

Financial Planning

The Hero Group benefits from the Group Chairman's financial acumen and his grasp ontechnology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of thehighest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is onfinancial and raw material management and a low employee turnover.


23/39

23

Quality

Quality at Hero is attained not just by modern plants and equipment and through latesttechnology, but by enforcing a strict discipline. At the Group factories, attaining qualitystandards is an everyday practice - a strictly pursued discipline. It comes from an

amalgamation of the latest technology with deep-rooted experience derived from nearlyfour decades of hard labor. It is an attitude that masters the challenge of growth andchange - change in consumers' perceptions about products and new aspirations arisingfrom a new generation of buyers.Constant technology up gradation ensures that the Group staysin the global mainstream and maintains its competitive edge. With each of its foreigncollaborations, the Group goes onto strengthen its quality measures as per the book. The Groupalso employs the services of independent experts from around the world to assist in new designand production processes.

Diversification

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has activelylooked at diversification. A considerable level of backward integration in itsmanufacturing activities has been ample in the Group's growth and led to theestablishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings,Munjal Auto Components and Munjal Showa Limited amongst other component manufacturingunits.Then there were the expansion into the automotive segment with the setting up of MajesticAuto Limited, where the first indigenously designed moped, Hero Majestic, went intocommercial production in 1978. Then came Hero Motors which introduced Hero Puch, incollaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motorswas established in 1984 to manufacture 100 cc motorcycles.The Hero Group also took a ventureinto other segments like exports, financial services, information technology, which includescustomer response services and software development. Further expansion is expected in the areasof Insurance and Telecommunication. The Hero Group's phenomenal growth is the result ofconstant innovations, a close watch on costs and the dynamic leadership of the Group Chairman,characterized by a culture of entrepreneurship, of right attitudes and building strongerrelationships with investors, partners, vendors and dealers and customer


24/39

24

RESEARCH METHODOLOGY

It is well known fact that the most important step in marketing research process isto define the problem. Choose for investigation because a problem well defined is halfsolved. That was the reason that at most care was taken while defining various parameters 21 ofthe problem. After giving through brain storming session, objectives were selected and the set onthe base of these objectives. A questionnaire was designed major emphasis of which wasgathering new ideas or insight so as to determine and bind out solution to the problems.

DATA SOURCE

Research included gathering both Primary and Secondary data. Primary data isthe first hand data, which are selected a fresh and thus happen to be original in character.

Primary Data was crucial to know various customers and past consumer views aboutbikes and to calculate the market share of this brand in regards to other brands.Secondary data are those which has been collected by some one else and whichalready have been passed through statistical process. Secondary data has been taken frominternet, newspaper, magazines and companies web sites.


25/39

25

RESEARCH APPROACH

The research approach was used survey method which is a widely used method

for data collection and best suited for descriptive type of research survey includesresearch instrument like questionnaire which can be structured and unstructured. Targetpopulation is well identified and various methods like personal interviews and telephoneinterviews are employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried inKashipur These were 100 respondents.

DATA COMPLETION AND ANALYSISAfter the data has been collected, it was tabulated and findings of the project werepresented followed by analysis and interpretation to reach certain conclusions.

SCOPE

My project was based on the Comparative Study of Bajaj V/S Hero Honda anddata was taken in the kashipur only.


26/39

26

Q1) Which bike do you have?

ANS)

Hero Honda 47

Bajaj 38

Any other 15


27/39

27

Q2) Which Model do you Have?ANS)

Hero Honda \ Bajaj

Splender 30 Ct100 7

passion 13 Discover 12

Karizma 7 Pulsar 17

Any other 6 Antother 8

Q3) In which family Income level do you Fall?

100000 200000 22

200000 300000 45

300000 400000 23


28/39

28

Above 400000 10

ANS)

Q4) For how long do you own a bike?

ANS)

0-1 year 34

1-2year 29

2-3year 26

Above3year 11


29/39

29

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

Office purpose 9 4

Personal purpose 13 15

Joy purpose 19 16

Other 6 3

Hero Honda and Bajaj

ANS)


30/39

30

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

Hero Honda Bajaj

Newspaper 4 2

Television 23 16

Magazine 2 1Friends &Relative

18 19


31/39

31

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

Yes 87%

No 5%

Cant say 8%


32/39

32

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

Hero Honda / BajajYes 25 23

no 22 15


33/39

33

Q9) Which Factor below Influence your decision?

ANS)

Hero Honda Bajaj

Price 72% 78%Mileage 78% 64%

Quality 65% 48%

Resale Value 40% 28%

Status symbol 10% 7%


34/39

34

Q10) how would you rate the following factors of Bike With respect to differentcompany?

ANS)

Hero Honda Bajaj

Mileage 74% 72%

Price 68% 65%Pick up 70% 80%

Maintenance 58% 62%

Look & Shape 85% 80%Brand Image 53% 55%


35/39

35

Q11) If new Bike with good features comes in, then wouldyou like to change your bike?ANS)

Hero Honda Bajaj

Yes 19 21

No 17 14

Cant say 11 3


36/39

36


37/39

37

Conclusion

1. Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 because theyprefer stylish looks and rest of the models of Hero Honda are purchased more by daily users who

needs more average of bikes than looks.

2. Hero Honda is considered to be most fuel-efficient bike on Indian roads.3. Service & Spare parts are available throughout India in local marketsalso.4. While buying a motorcycle, economy is the main consideration in formof maintenance cost, fuel efficiency.5. Majority of the respondent had bought their motorcycle more than 3years.


38/39

38

RECOMMENDATIONS

1. Bajaj should introduce some more models having more engine power.

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

3. More service centers should be opened.

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

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

6. The price should be economic.


39/39

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

Documents

Project Report of Research