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A

MAJOR RESEARCH PROJECTON

A COMPARATIVE STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA

AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE

Submitted to DAVV (Indore)In partial fulfillment of

The degree of

MASTER OF BUSINESS ADMINISTRATION (2009-11)

Guided by Submitted by AMIT VIJAY PATIL VARUN CHANDWANI Asst.Prof. ABHINAV TRIVEDI university –DAVV, Roll no.-09150404

Vindhya Institute of technology & science

Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

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Vindhya Institute of technology & science Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

Certificate

This is to certify that Mr/ VARUN CHANDWANI of MBA 4th Sem in the

academic year (2009-2011) of Vindhya Institute of technology & science DAVV, Indore has completed the project report entitled “…A COMPARATIVE

STUDY ON BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE.” towards the

partial fulfillment of degree of Master of Business Administration (Full Time) Under my guidance. He/She has carried out this project with full dedication &

sincerity and this report is a satisfactory account of his/her work

Date: Guide Name

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Vindhya Institute of technology & science__

Devi AhilyaVishwa Vidyalaya, Indore (M.P.)

Declaration

I VARUN CHANDWANI hereby declare that the Major Research Project entitled “…A COMPARATIVE STUDY ON

BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS OF INDORE” submitted by me

to Vindhya Institute of ___________ & __________, Indore towards the partial fulfillment of the Degree of Master of Business Administration (full time)

represents my own work except for the guidance and / or suggestion received which has been suitably acknowledged.

Date: (VARUN CHANDWANI)

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Acknowledgment

The feeling of acknowledgement some thing and expressing it in words are two things apart. It

is weakness, but we honestly admit that when we truly wish to express our warm gratitude and

indebtedness towards somebody, we are always at loss of word.

The project could not have been completed without support extended to me by “GUIDE

NAME”. He/She had faith in me and urged me to do things innovatively, which helped me to

successfully complete my project.

I also like to express my gratitude towards “HELPING PERSON/MANAGER OF THEFIRM / COMPANY (A COMPARATIVE STUDY ON

BUYING BEHAVIOUR OF COSTOMERS BETWEEN HERO HONDA AND TVS MOTORS A PARTIAL ANALYSIS )”

to undertake my research from “COMPANY / FIRM”

I would also like to thank “Abhinav Trivedi / Helping”, whose invaluable support was

necessary for me to achieve my objective and finally a word of gratitude to my parents & all my

friends who were always there with their support and encouragement.

(VARUN CHANDWANI)

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INDEX

CHAPTER CONTENTS PAGE NO.

CHAPTER 1

CHAPTER 2

CHAPTER 3

CHAPTER 4

CHAPTER 5

• Title Page.

• Certificate from .

• Acknowledgement.

• Declaration

• Table of Content.

Abstract / Executive Summary

INRODUCTION Conceptual Framework Rationale of Study

Objective of Study

Literature Review.

Methodology The Design.(Hypothesis ) The Sampling. Data Collection Methods.

The Tools

Result Findings and Discussion Summary of Result

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CHAPTER 6

CHAPTER 7

CHAPTER 8

CHAPTER 9

CHAPTER 10

CHAPTER 11

CHAPTER 12

Conclusion and Suggestion Conclusion Suggestion

Future Implications of the Study

Limitation

BIBLIOGRAPHY

WEBLIOGRAPHYREFERENCES

Appendices. (Questionnaire, Sample, Statistical tables, and any other additional relevant material)

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6- EXECUTIVE SUMMARY:-

• The Automobile sector is one of the fastest growing manufacturing sectors in India.

• In the 90s the industry witnessed an average growth rate of above 20 percent.

• Indian Automobile Industry is characterized by a very high percentage (75 per cent) of

two wheeler production, ranking second only to Taiwan.

• The world leaders in the sector are evincing keen interest in establishing manufacturing

facilities for manufacturing and assembling components.

• A politically stable and vibrant State, is centrally located with the support of seaports,

international airports, assured and reliable power supply, abundant water, broad base of

auto component manufacturers, highly trained, skilled and disciplined manpower and is

therefore, the preferred location for Automobile industries.

• The interest of the state has been duly noted by Global Auto Majors, who have indicated

their interest to consider Andhra Pradesh for establishing manufacturing facility.

• The Government is also formulating an Auto Policy, which would give a proper direction

to the growth of the sector.

• There are more than 20 auto –component manufacturing companies in the State,

manufacturing components such as grey-iron castings, precision aluminum castings, leaf

springs, oils and lubricants, diesel fuel injection equipment, electronics and auto

electronics and auto electrical, front axles, gears, forging, machined components, pressed

metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors,

alternators, electronic regulators, high pressure die castings, clutch covers, fuel

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7 - INTRODUCTION :-

INTRODUCTION OF TVS

The TVS Group is one of India's largest industrial conglomerates. TV Sundram Iyengar and Sons

Limited, established in 1911, is the parent and holding company of the TVS Group.

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the

top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the

flagship company of the USD 4 billion TVS Group. With a workforce of over 5000, the

company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, North

India and one at Indonesia. The company has a production capacity of 300 thousand units a year.

TVS and Sons also distribute Heavy Duty Commercial Vehicles, Jeeps and Cars. It represents

premier automotive companies like Ashok Leyland, Mahindra and Mahindra Ltd., Fiat and

Honda. It also distributes automotive spare parts for several leading manufacturers.

TVS & Sons has grown into a leading logistics solution provider and has set up state-of-the-art

warehouses all over the country. It has also diversified into distributing Garage equipment that

ranges from paint booths to engine analyzers and industrial equipment products.

GROUP COMPANIES

With steady growth, expansion and diversification, today TVS commands a strong presence in

various fields-two-wheelers, automotive components, automotive spares, computer peripherals

and finance.

Lakshmi Auto Components Limited - Large OE supplier of two wheeler gears and camshafts.

LUCAS INDIAN Service Limited (www.lucasindia.com) - Company looks after the distribution

of auto electrical components all over India.

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AXLES INDIA LIMITED - A joint venture with Eaton Limited, U.K. Manufactures axle

housings and

COMPANY AT PRESENT & IN FUTURE

Successfully launched the Victor and Fiero-F 2 models after parting ways with Suzuki.

Two wheeler markets show sign of revival after a lackluster first half.

The company is suffering a decline in volumes due to poor response of its two strokes

Max motorcycles.

Recently launched the TVS Centra and 125 cc TVS Victor GLX and four stroke Max in

the pipeline, which would be launched later this year.

Plans major foray into three-wheeler and quadricycles market through fresh

investments of Rs 500 crore.

Actively looking to set up manufacturing unit in Indonesia or Vietnam.

Strong focus on R&D and product development. drive heads for heavy and light

commercial vehicle

APACHE THE SAVIOR

TVS launched Apache RTR 160 cc model in September 2008, with its ultra modern

technology for Indian bikes has proved to be a big success. The success of TVS Apache

is especially significant because it was developed with indigenous technology.

Two stroke Max Range – On the way out

The company is currently looking forward to phase out its two stroke Max range, which

is perceived to be less fuel efficient with a new four stroke range. The changeover is

expected to take place by the end of June 2009.

Two new launches could out TVS on a high growth Trajectory

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TVS Centra a new 100 cc model has recently been launched and the company has set

ambitions targets of achieving monthly sales in the range of 15000-20000 bikes per

month.

Also, a new upgraded 125 cc TVS Victor has been launched which will improve the

trajectory of the company.

Three wheeler project- entering a new market

TVS Motor has set the stage for entry into the three-wheeler markets with the setting up

of a new plant at Nanjangud, near Mysore in Karnataka. We understand that the

company would be targeting the sub-one ton passenger and goods carriers segment of

the market.

With an investment of about Rs 50 crore in phase-1, it will cater to both passenger and

cargo segments. The total investments for the three wheeler and four-wheeler

quardricycle project are expected to be in the range of Rs 500 crore in the next two-

three years. It plans to go with petrol version of three wheelers and expects higher

demand to come from B class towns. The company expects higher margin and low

competition in three-wheeler business as compared to its two-wheeler business. Three

wheeler sales have grown at a CAGR of 7% over the last 9 years to 2.26 lakh units FY

03, and are expected to grow at the same rate for the next five years. TVS is expected to

roll out its first three-wheeler by the end of FY05 to garner a 30% market share with

around 100,000 unit sales by the end of FY08.

TVS MOTOR COMPANY

TVS Motor Company Limited, part of the TVS Group, is one of India's leading two-

wheeler manufacturers. With a turnover of over Rs.2700 crores, the Company

manufactures a wide range of motorcycles, scooters, mopeds and scooterettes. Little

wonder, it boasts of more than 7 million happy customers.

The chapter called two wheelers in India begins…..

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The year was 1980. And it is a year to remember for the Indian two-wheeler industry.

For it was this year that saw India's first two-seater moped, TVS 50, rolling out on the

Indian roads. For some it was freedom to move. For some, shorter distances to span.

For the Indian Automobile sector, a breakthrough to be etched in history.

With the joint venture with Suzuki Motor Corporation in 1983, TVS-Suzuki became the

first Indian company to introduce 100 cc Indo-Japanese motorcycles in September

1984. Through an amicable agreement the two companies parted ways in September

2001.

Unmatched Performance

Today TVS Motor Company has the largest market share in the moped category with a

whopping 65.3% and is also the undisputed leader in the scooterette segment with

34.3% share. It also holds 18.3% market share in motorcycles. Graph

Wide Network

With a strong sales and service network of 500 Authorized Dealerships, 1018

Authorized Service Centres and over 864 Certified Service Points, TVS is growing

from strength to strength.

World Class Facilities

The company manufactures its motorcycles, scooterettes and mopeds at its state-of-the-

art factories in Mysore and Hosur.

Product Range

TVS offers a wide range of two-wheelers

- Motorcycles - TVS Centra / TVS Victor / TVS Fiero F2/ TVS Max 100/ TVS Max

100 R

- Scooterettes - TVS Scooty Pep/ TVS Scooty 2S

- Mopeds - TVS XL Super/ TVS XL Super HD

VISION

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TVS Motor - Driven by the customer

TVS Motor will be responsive to customer requirements consonant with its core

competence and profitability. TVS Motor will provide total customer satisfaction by

giving the customer the right product, at the right price, at the right time.

TVS Motor - The Industry Leader

TVS Motor will be one among the top two two-wheeler manufacturers in India and one

among the top five two-wheeler manufacturers in Asia.

TVS Motor - Global overview

TVS Motor will have profitable operations overseas especially in Asian markets,

capitalizing on the expertise developed in the areas of manufacturing, technology and

marketing. The thrust will be to achieve a significant share for international business in

the total turnover.

TVS Motor - At the cutting edge

TVS Motor will hone and sustain its cutting edge of technology by constant

benchmarking against international leaders.

TVS Motor - Committed to Total Quality

TVS Motor is committed to achieving a self-reviewing organization in perpetuity by

adopting TQM as a way of life. TVS Motor believes in the importance of the process.

People and projects will be evaluated both by their end results and the process adopted.

TVS Motor - The Human Factor

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TVS Motor believes that people make an organization and that its well-being is

dependent on the commitment and growth of its people. There will be a sustained effort

through systematic training and planning career growth to develop employees' talents

and enhance job satisfaction. TVS Motor will create an enabling ambience where the

maximum self-actualization of every employee is achieved. TVS Motor will support

and encourage the process of self-renewal in all its employees and nurture their sense of

self worth.

TVS Motor - Responsible Corporate Citizen

TVS Motor firmly believes in the integration of Safety, Health and Environmental

aspects with all business activities and ensures protection of employees and

environment including development of surrounding communities. TVS Motor strives

for long-term relationships of mutual trust and inter- dependence with its customers,

employees, dealers and suppliers.

MILESTONES

Launched Centra in January 2004, a TECHNOLOGY Uncompromising Quality,

TECHNOLOGY

TVS Motor Company's R&D division has an imposing pool of talent and one of the

most contemporary labs, capable of developing innovative designs.

Committed to achieving total customer satisfaction through Total Quality Control

(TQC), the Company continuously strives to give the customer, the best value for

money.

ECO-FRIENDLY

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TVS is committed to protecting the environment. The company's manufacturing

facilities at Mysore & Hosur have state-of-the-art facilities & air pollution control

measures. Even the suppliers are encouraged to ensure that their products meet eco-

friendly norms.

ALWAYS FIRST

- Launched TVS 50, India's first 2-seater, 50cc moped in Aug 1980.

- First Indian Company to introduce 100cc Indo-Japanese motorcycles in Sept 1984.

Launched India's first indigenous Scooterette, TVS Scooty in June 1994.

- Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in

Dec 1996.

- Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.

- Launched India's first high performance moped - the XL Super, with a 70 cc engine in

Nov 1997.

- Launched Victor in August 2001, a world-class 4-stroke 110 cc motorcycle.

World-class 4-stroke 100 cc motorcycle with VT-i Engines for best-in-class mileage.

AWARDS Deming Award

TVS Motor is the third Indian company to win the Deming Prize. Only two other TVS

companies have managed this before.

It's been a long time since the Union of Japanese Scientists and Engineers instituted the

Deming Prize. But very, very few organizations outside Japan have had the honor of

receiving it. In fact, the TVS Motor Company is the world's first motorcycle

company to be awarded the prize.

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As for the TVS Group, it's a third. Sundaram -Clayton Ltd. (Brakes Division) and

Sundaram Brake Linings Ltd. have already won it. The Deming Prize is the ultimate

confirmation of our commitment to quality control. A confirmation known to every

TVS rider across the country.

PRODUCT PROFILE

TVS APACHE (RTR)

The recently launched TVS Apache RTR FI 160 has added an another stunner on the roads.

Stylish alloys, unique grab rails, classy silencer, larger & sharp lined fuel tank, all these

elements combine perfectly to give TVS Apache RTR 160 a sporty eye-catching looks.

The Apache RTR 160 has been upgraded with electronic fuel injection (EFI) and becomes

Apache RTR 160 Fi. The EFI technology has enabled TVS to boost peak power of this

bike. TVS has priced the new model at Rs. 65000.

TVS SCOOTY PEP – First Love

A sleek duo-tone body. Body colored coordinated mirrors. A smiley headlamp. Winky

indicators. Looks even better with you on it.

POWER

75cc 4stroke engine to pep up your ride. A bigger, more comfortable seat for two and

strong hydraulic shock absorbers for a smoother ride.

TECHNOLOGY

A unique power/economy mode for extra mileage. An auto reserve fuel tap. No more

turning knob from main to reserve. Auto chokes for instant starts. Every time.

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SAFETY

Puncture Resistant Tvs that come with a special sealant inside, minimizing chances of a

flat. A side stand alarm that beeps if you forget to take off the stand. Multi focal reflector

headlamp and side reflectors for enhanced visibility. Now all you need is an equally funky

helmet and you” re all set to pep.

INTRODUCTION OF THE PROJECT

Someone has rightly said that practical knowledge is far better than classroom teaching.

During this project I fully realized this and I came to know about how a consumer chooses

among a varied range of products available to him.

The subject of my study is market survey of customer buying behavior in bikes taking TVS

for comparison, which has slowly but steadily evolved, from a beginner to a corporate giant

earning laurels and kudos throughout.

The report contains first of all brief introduction about the company. Finally there comes

data presentation and analysis in the end of my report. I also put forward some of my

suggestion hoping that they help TVS Motor Company move a step forward to being the

very best.

SCOPE OF THE STUDY

The scope of the study is to study the customer buying behavior of the respondents in New

Delhi and attain the awareness level of the customers. The scope is that the services of the

dealer, advertising media as well as celebrity has made an effect on the customer or not and

how much.

This study also allows knowing the future prospects of the company and where it is at

present in the market

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TVS MOTOR REVENUES GROW AT 23.2% IN Q2 EXPORTS UP

52%

Bangalore, October 30, 2008: TVS Motor Company today reported a 23.2 % increase in

revenues, registering Rs. 1034 crores for the quarter ended September 2008 of the financial

year 2008-09, when compared to Rs. 839 crores in the corresponding quarter of the

previous year. Despite the challenging environment caused by increasing input material

costs, general inflationary trends and lack of availability of retail finance, the company has

posted Profit before Tax of Rs. 13.9 crores and Profit after Tax of Rs. 10.4 crores when

compared to Rs. 16.9 crores and Rs. 11.9 crores in the corresponding period of the previous

year. The last year's September Quarter had the benefit of Rs. 10.2 crore (net) on account of

exceptional items. Profit before exceptional items for the quarter is higher at Rs. 13.9 crore

in comparison with Rs. 6.7 crores of the corresponding quarter of last year.

The company has recorded growth in sales despite adverse retail financing. Motorcycles

witnessed higher sales at 1.81 lakh during the quarter compared to 1.44 lakh units over the

previous period. Scooters clocked sales of 0.77 lakh in comparison to 0.76 lakh units

during the corresponding quarter of the previous year.

During the quarter, the company crossed yet another milestone when it reached two million

units of TVS Scooty in July 2008. Indian Tennis star, Sania Mirza became the new Brand

Ambassador for the Scooty brand. The company chose to associate with Sania as brand

ambassador since she emanates the brand qualities of independence, progress and

accomplishment.

During the quarter, the company further broadened the horizons of its TVS Scooty brand

with the launch of Balancing Wheels

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SUB DIVISION OF SHARES

In order to improve the shareholder value and to facilitate greater liquidity in its equity

shares, TVS Motor Company recently subdivided the face value of its shares to Re. 1/-

each. Earlier the face value of the shares was Rs. 10/-

MERGER OF LAKSHMI AUTO COMPONENTS WITH TVS MOTOR

COMPANY

The Shareholders of TVS Motor Company and Lakshmi Auto Components (LAC) have on

19th January 2004 approved the merger of Engine Division of LAC with TVS Motor

Company and transfer of Rubber and Plastics division of LAC to Sundaram Auto

Components Limited, a wholly owned subsidiary of TVS Motor Company. The company

expects to obtain the approval of High Court of Tamil Nadu and complete other statutory

formalities in the next few months. This merger is expected to improve the overall

profitability of TV

INTRODUCTION & HISTORY OF HERO HONDA

India has the largest number of two wheelers in the world with 41.6 million

vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the

country. India was the second largest two wheeler manufacturer in the world starting in the

1950’s with the birth of Automobile Products of India (API) that manufactured scooters.

API manufactured the Lambrettas but, another company, Tvs Auto Ltd. surpassed API and

remained through the turn of the century from its association with Piaggio of Italy

(manufacturer of Vespa).

The license raj that existed between the1940s to1980s in India, did not allow foreign

companies to enter the market and imports were tightly controlled. This regulatory maze,

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before the economic liberalization, made business easier for local players to have a seller’s

market. Customers in India were forced to wait 12 years to buy a scooter from Tvs. The

CEO of Tvs commented that he did not need a marketing department, only a dispatch

department. By the year 1990, Tvs had a waiting list that was twenty-six times its annual

output for scooters.

The motorcycle segment had the same long wait times with three manufacturers; Royal

Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-

stroke engine at that time and took the higher end of the market but, there was little

competition for their customers. Ideal Jawa and Escorts took the middle and lower end of

the market respectively.In the mid-1980s, the Indian government regulations changed and

permitted foreign companies to enter the Indian market through minority joint ventures.

The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda,

TVS Suzuki, Tvs Kawasaki and Kinetic Honda. The entry of these foreign companies

changed the Indian market dynamics from the supply side to the demand side. With a larger

selection of two-wheelers on the Indian market, consumers started to gain influence over

the products they bought and raised higher customer expectations. The industry produced

more models, styling options, prices, and different fuel efficiencies. The foreign companies

new technologies helped make the products more reliable and with better quality. Indian

companies had to change to keep up with their global counterparts.

BOARD OF DIRECTORS

No. Name of the DirectorsDesignation

Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

Mr. Pawan Munjal Managing Director

Mr. Toshiaki Nakagawa Jt. Managing Director

Mr. Takao Eguchi Whole-time Director

Mr. Satyanand Munjal Non-executive Director

Mr. Om Prakash Munjal Non-executive Directo

Mr. Tatsuhiro OyamaNon-executive Director

Mr. Masahiro TakedagawaNon-executive Director

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Mr. Narinder Nath Vohra Non-executive & Independent Director

Mr. Pradeep Dinodia Non-executive & Independent Director

Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director

Mr. Analjit Singh Non-executive & Independent Director

Dr. Pritam Singh Non-executive & Independent Director

Ms. Shobhana Bhartia Non-executive & Independent Director

Dr. Vijay Laxman Kelkar Non-executive & Independent Director

HERO HONDA MOTORCYCLE LTD.

Type Public company BSE:HEROHONDA MFounded January 19, 1984 in Gurgaon, Haryana, IndiaHeadquarters

Haryana, India

Key people

Om Prakash Munjal, FounderMr. Brijmohan Lall Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing Director

Mr. Pawan Munjal, Managing DirectorIndustry AutomotiveProducts Motorcycles, ScootersRevenue U$ 2.8 billion

Websitehttp://www.herohonda.com/site/home/home.asp

HERO HONDA HEADQUARTERS

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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 of India and Honda from

Japan. It has been the world's biggest manufacturer of 2-wheeled motorized 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[citation needed]. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana,

India. It specializes in dual use motorcycles that are low powered but very fuel efficient.

Contents

1 Models

o 1.1 Bikes

2 Company Profile

o 2.1 Just-in-Time

o 2.2 Ancillarisation

o 2.3 Dealer Network

o 2.4 Financial Planning

o 2.5 Quality

o 2.6 Diversification

Models

Bikes

Hero Honda Splendor Plus

Hero Honda Passion Plus

Hero Honda Karizma

Hero Honda CBZ

Hero Honda Super Splendor

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Hero Honda CD Dawn

Hero Honda CD Deluxe

Hero Honda Achiever

Hero Honda Glamour

Hero Honda Ambition

Hero Honda "Splendor" Model

[Company Profile]

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

company Hero Cycles. The two-wheeler manufacturing business of bicycle components had

originally started in the 1940’s and turned into the world’s largest bicycle manufacturer today.

Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel,

make free wheel bicycle critical components and have diversified 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 build long lasting relationships with everyone (customers,

workers, dealers and vendors). The Hero Group has a passion for setting higher standards and

“Engineering Satisfaction” is the prime motivation, way of life and work culture of the Group.

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero

Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor

Company Ltd. (HMC). HHM Mission Statement is: “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

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products and processes, and develop teams that keep the momentum going to take the company

to excellence in the new millennium”. This alliance became one of the most successful joint

ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda

Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to

decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions

as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for

HHM.

== Growth == The business growth of Hero Honda has been phenomenal throughout its early

days. The Munjal family started a modest business of bicycle components. Hero Group expanded

so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today

Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the

record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors

Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture

motorcycles. It is currently the largest producer 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 mainly aimed at girls. The Hero Group has done business differently right

from the start and that is what has helped them to achieve break-through in the competitive two-

wheeler market. The Group's low 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 Group through the years has been influenced by a number of factors:

[ Just-in-Time ]

The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-

in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line

worker operates two machines simultaneously to save time and improve productivity. The fact

that most of the machines are either developed or fabricated in-house, has resulted in low

inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working

since the beginning of production in the unit and is functional even till date.. This is the Japanese

style of production and in India; Hero is probably the only company to have mastered the art of

the just-in-time inventory principle.

[ Ancillarisation ]

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An integral part of the Group strategy of doing business differently was providing support to

ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's

requirements and also a large number of other vendors, which include some of the better known

companies in the automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment and dedication of its workers.

There is no organized labor union and family members of employees find ready employment

within Hero. The philosophy with regard to labor management is "Hero is growing, grow with

Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities,

further ahead of the industry norms. Long before other companies did so, Hero was giving its

employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel

Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but

also for the immediate family members.

[ Dealer Network ]

The relationship of Hero Group with their dealers is unique in its closeness. The dealers are

considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000

outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all

the corners of the country, visiting dealers and send back daily postcards with information on the

stock position that day, turnover, fresh purchases, anticipated demand and also competitor action

in the region. The manufacturing units have a separate department to handle dealer complaints

and problems and the first response is always given in 24 hours.

[ Financial Planning ]

The Hero Group benefits from the Group Chairman's financial acumen and his grasp on

technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the

highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on

financial and raw material management and a low employee turnover.

[ Quality ]

Quality at Hero is attained not just by modern plants and equipment and through latest

technology, but by enforcing a strict discipline. At the Group factories, attaining quality

standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation

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of the latest technology with deep-rooted experience derived from nearly four decades of hard

labor. It is an attitude that masters the challenge of growth and change - change in consumers'

perceptions about products and new aspirations arising from a new generation of buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream and

maintains its competitive edge. With each of its foreign collaborations, the Group goes onto

strengthen its quality measures as per the book. The Group also employs the services of

independent experts from around the world to assist in new design and production processes.

[ Diversification ]

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at

diversification. A considerable level of backward integration in its manufacturing activities has

been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling

Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited

amongst other component-manufacturing units.

Then there were the expansion into the automotive segment with the setting up of Majestic Auto

Limited, where the first indigenously designed moped, Hero Majestic, went into commercial

production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with

global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in

1984 to manufacture 100 cc motorcycles.

The Hero Group also took a venture into other segments like exports, financial services,

information technology, which includes customer response services and software development.

Further expansion is expected in the areas of Insurance and Telecommunication.

The Hero Group's phenomenal growth is the result of constant 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 stronger relationships with investors, partners,

vendors and dealers and customers

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CONCEPTUAL FRAME WORK:

These questions will help in understanding the factors that influence the decision making process

of the consumers. The buyer’s decision making process includes the following:-

1. Problem recognition

2. Information search

3. Evaluation of alternatives

4. Purchase decision

5. Post purchase behavior

1. Problem recognition : - First and the foremost step is to identify the problem i.e. what

actually one wants with regard to the product.

2. Information Search : - Second step is to search the relevant information regarding the

Product which one wants.

3. Evaluation of alternatives : - Third step is to evaluate the collected information i.e.

analyze the information.

4. Purchase decision : - In forth step the product is actually purchased.

5. Post purchase behaviour : - In fifth step the consumer actually reacts against the quality,

quantity etc received after the purchasing the product i.e. in this stage he reacts on the

basis of his getting satisfied after the purchase of the product.

The buyer’s decisions include the following:-

Product choice

Brand choice

Dealer choice

Purchase timing

Purchase amount.

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Consumer perception

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

buying experience, friend’s and associate’s advice, and the marketer’s and competitor’s

information and promises. Though customer preference is a very qualitative term and it is very

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

level.

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.

The detailed study of Consumer Behaviour or Consumer Preferences focuses on-

Who Buys products or services?

How do they buy products or services?

Where do they buy them?

How often do they buy them?

When do they buy them?

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28

Why do they buy them?

How often do they use them?

Many companies are aiming for high satisfaction because customers who are just

satisfied still find it easy to switch, when a better offer comes along. Those who are highly

satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity

with the brain, not just a rational preference. The result is high customer loyalty.

In this highly competitive world customers plays a very important role. Thus, if a

company wants to survive then it should look forward to the determinants of customer

satisfaction. Though it is a very subjective issue that differs from individual to individual yet,

identifying some basic parameters of customer satisfaction is important.

Satisfaction is a person’s feeling of pleasure and disappointment resulting from

comparing a product’s perceived performance in relation to his or her expectations. It is only the

customer delight that marketer aims for.

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RATIONALE OF STUDY:-

To know about the customer preference and decision process with regard to 150cc bike.

To know the Basic consumer buying behaviour and the reasons because of which they

switch from one company to another.

To know about the company’s details (profile, Products)

This study would help in revealing the type and specific qualities of the bikes offered by

the company to their consumers.

To study the satisfaction level of consumers who uses bikes.

To study the factors influencing consumers to buy 150cc bikes.

To study effect of advertisement on the purchasing decision of the consumers

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OBJECTIVE OF STUDY:

The objective of the study is to analyze the customer buying behavior of the respondents in

motorbikes of different brands .

To study the future prospects of TVS motorbikes.

To provide a fair picture of technology used by TVS motors.

To study the sales trends of tvs motors.

To analyze the quality of after sales services being provided by tvs motors.

. To analyze the customer satisfaction.

. To analyze the customer preference.

3To know which manufacturer is providing better services.

. To analyze after sales services of bikes.

To study the behavioral factors of consumers in motor bikes.

. To suggest various factors to improve sales

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7 -LITERATURE REVIEW:-

A literature review is a body of text that aims to review the critical points of current knowledge

including substantive findings as well as theoretical and methodological contributions to a

particular topic. Literature reviews are secondary sources, and as such, do not report any new or

original experimental work.

Simai Haji Mati was quoted saying that literature review should be referred to as reviewing

and analyzing the work of literature in relation to the specified topic in research.

Most often associated with academic-oriented literature, such as a thesis, a literature

review usually precedes a research proposal and results section. Its ultimate goal is to

bring the reader up to date with current literature on a topic and forms the basis for

another goal, such as future

Gupta.C .B and Dr. Nair. N.Rajan 2 - A business is based on understanding the

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

Mamoria C.B. and Mamoria Satish 3 - Consumer behaviour is the process where by

individuals decide what, when, where, how and from whom to purchase goods and

services. Buying behaviour may be viewed as an orderly process here by individual

interacts with his environment for the purpose of making market decision on products

and services.

Nair Suja. R.4 - The success of the firm will be determined by how effective it has been

in meeting the diverse customer needs and wants by treating each customer as unique and

offering products and services to suit his/her needs.

research that may be needed in the area.

treatment of a torn ACL. And a review does not necessarily mean that your reader wants you to

give your personal opinion on whether or not you liked these sources.

Consumers buy not the products but bundle of emotions. Modern goods are recognized as

essentially psychologically things, which are symbolic of personal attributes and goals and of

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32

social patterns and strivings. All commercial objects have a symbolic character, and making a

purchase involves an assessment implicit on explicit of this symbolism to decide whether or not

it fits (

Sidney Levey, 1959).

The research has shown repeatedly that positive free choice Beliefs are related to concurrently

claim purchasing as brand usage (Barwise and Fhournberg 1985; Bind, Channan and

Ehrenberg 1970; Costlebeny and Ehrenbag 1990). A “Usage factor” runs through the data.

Many more people tend to associate a positive attribute with longer brands than associate it with

smaller brands. The explanation is that a larger brand has more claimed user than a smaller brand

and the users of brand are more likely than non-users to give a positive Attribute response. This

observation also lies in much evidence in the literature that familiarity in users liking (e.g.,

Harinsar 1977; Payme 1981; Sluckin, Hargreaves and Calman 1982; Zajanc 1968. Forced

choice degree of association attitude done were similarly co-related with claimed usage in our

study of six packaged goods categories (Haley and case 1979).

Barwise and Ehrenberg (1985) in addition showed that a smaller brand tended to get fewer

positive belief brand associations than a larger brand even within each claimed brand usage

grouping. Thus regular users of the brand leader scored that branch. This effect in known more

generally as double jeopardy or DJ effect (e.g. Ehrenberg, Goodhardt, Cd Barwise 1990;

McPhee 1963). DJ occurs simply as statistical selection effect due to the offering popularities

on making shows of the brands. There need not be any perceived differences between the brands.

In contrast to these relationships with brand usage or market shares, very difference influences

show up in respondent associates for same belief and brand combinations. For example, an either

a physical attribute or an advertising claim that is particularly connected with a brand can

enhance it score for that belief of the attribute. The aggregate score for that brand/belief

combination then deviates markedly from what would be expected on the basis of brand usage

alone. (Barwise and Ehrenberg 1985); Bird and Ehrenberg 1970; castteben and Ehrenberg 1990).

Pamela L. Alreck and Robert B.Settle (1999) felt that the principle objective of the

marketer’s is not simply to have a simple sale relation ship with buyer but also build relationship

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33

with buyer in the form of linking the brand to a particular need, associating it with a pleasant

mood, appealing to subconscious motives; conditioning buyers to prefer the brand through

KOTLER (2000) his book mentioned that a company practicing market segmentation realizes

that buyers differ in their needs and wants, purchasing behavior, demographic characteristics,

product/service usage patterns, geographic locations, buying habits and other characteristics

A summary of literature review in branding reveals that the brand perception is not

predominantly depend upon on external parameters like age, income and education but depends

on more on personality and psychological dimensions. The research is conducted to prove that

the brand preference is independent of the above parameters age, income and education

8 - METHODOLOGY:-

SAMPLE DESIGN-

It is well known fact that the most important step in marketing research process is to define the

problem. Choose for investigation because a problem well defined is half solved. That was the

reason that at most care was taken while defining various parameters of the problem. After

giving through brain storming session, objectives were selected and the set on the base of these

objectives. A questionnaire was designed major emphasis of which was gathering new ideas or

insight so as to determine and bind out solution to the problems.

DATA SOURCE

Research included gathering both Primary and Secondary data. Primary data is the first

hand data, which are selected a fresh and thus happen to be original in character. Primary Data

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34

was crucial to know various customers and past consumer views about bikes and to calculate the

market share of this brand in regards to other brands.

Secondary data are those which has been collected by some one else and which already

have been passed through statistical process. Secondary data has been taken from internet,

newspaper, magazines and companies web sites.

RESEARCH APPROACH

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

collection and best suited for descriptive type of research survey includes research instrument

like questionnaire which can be structured and unstructured. Target population is well identified

and various methods like personal interviews and telephone interviews are employed.

SAMPLING UNIT

It gives the target population that will be sampled. This research was carried in Muktsar

(Distt Muktsar)

These were 100 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were

presented followed by analysis and interpretation to reach certain conclusions.

SCOPE

My project was based on the Comparative Study of Tvs V/S Hero Honda and data was

taken in the City Muktsar only.

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35

SAMPLING

Method: Simple Random Sampling

Area: Circle Office in Jaipur and also other offices in

Jaipur of Reliance.

Unit: Employees of Reliance communications in circle

office.

Sample size: 100 employees

Research tool: Questionnaire. Sampling may be defined as the selection of some parts

of an agreement or totality for the purpose of study. All the items in any field of inquiry

constitute a universe or population, a complete enumeration of all the items in the

population is known as Census inquiry. But when the field of inquiry is large this method

becomes difficult to adopt because of the limited no. of resources involved in the case

sample survey method is chosen under which units are selected in such a way that they

represent the entire universe.

SAMPLING DESIGN

CENSUS METHOD : - All the items in any field of inquiry constitute a ‘Universe’ or

‘Population’. A complete enumeration of all the items in the ‘Population’ is known as a

Census inquiry. It can be presumed that in such an inquiry, when all items are covered,

no element of chance is left and highest accuracy is obtained. But in practical it is not true

in all cases. This type of inquiry involves a great deal of time, money and energy.

Therefore, when the field of inquiry is large, this method becomes difficult to adopt

because of the resources involved.

SAMPLING METHOD :- When field studies are undertaken in practical life,

consideration of time and cost almost invariably lead to a selection of respondents i.e.

selection of only few items. The respondent selected should be as representative of total

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36

population. These respondents constitute what is technically called a ‘Sample’ and the

selection process is called ‘Sampling Technique’. The survey so conducted is known as

‘Sample Survey’.

Implementation of Sample Design: - A sample design is a definite plan for obtaining a

sample from a given population. It refers to the technique or the procedure the researcher would

adopt in selecting items for the sample. Sampling design may as well lay down the number of

items to be included in the sample i.e. the size of sample. Sample design is determined before the

data are colleted.

Steps In Sampling Design :- While developing a research design following items

are taken into consideration:-

I. Type of universe: - First and the foremost step is to clearly define the

universe to be studied. As I have taken the area of Yamuna Nagar City

(Haryana), so for me here the universe is Yamuna Nagar area. No doubt it is a

finite universe but the area is very big and can’t be covered easily due to

shortage of time.

II. Sampling unit: - A decision has to be taken concerning a sampling unit

before selecting sample. Here my sample unit includes college going students

who own bikes.

III. Size of sample: - This refers to the number of items to be selected from the

universe to constitute a sample. Here I have taken the sample of 200 College

going students who have bikes.

IV. Parameters of interest: - In determining the sample design, one must

consider the question of the specific population parameters which are of

interest. Here I had taken only college going students who own their bike.

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37

V. Sampling procedure: - Finally the technique of selecting the sample is to be

dealt with. That means through which method the sample has been collected.

DATACOLLECTION METHODS

Data collection is an integral part of the marketing research. There are several ways of collecting

the appropriate data, which differ considerably in context of money costs, time and other

resources at the disposal of the researcher. The researcher should keep in mind two types of data

viz. Primary and Secondary.

THE PRIMARY DATA

are those, which are collected afresh and for the first time, and thus happen to be original in

character.

Primary Data is collected through:

Questionnaire- in which division of questions are as follows:

(a) No. of close ended questions -9

(b) No. of open ended questions-3

Observation

Unsturctured interviews

THE SECONDARY DATA

are those, which have already been collected by some one else like various journals and

publications of the company and that are used for quick compilation of the report.

Both the methods were used for the compilation of the project.

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HYPOTHESIS TESTING : -

During this research project I came in to contact with many customers who are having

bikes. It has been found that in Hero Honda mostly the customers are having splendor while the

ratio of the customers using Passion, Karizma and other bikes are comparatively low. In Bajaj

the customers are giving more preference to Discover and Pulsar models and in case of TVS

Bikes the customers are givig more preference to the other models rather than Flame,Starcityand

Apache. The maximum numbers of customers that are using these bikes fall in the income group

of 200000-300000.

It has been observed that the customers are using their bikes mostly for official and

personal purpose. It is observed that the awareness of Hero Honda bikes mostly comes from

friends while of Bajaj and TVS the awareness comes from newspapers and televisions. Out of

the sample size of 90 customers, 65 customers agree with the fact that advertisements play a very

significant role in influencing their behavior to choose the bike. On the other hand 15 customers

do not agree to this fact. While remaining 10 customers are not sure about it.

When the customers are asked that are they satisfied with the performance of their bikes

then most of them agrees to the fact. Out of the sample size of 90 customers, 55 customers says

that they are satisfied with the performance of their bikes. On the other hand 28 customers are

not satisfied with the performance of the bikes that they are having. While the remaining 10

customers are unable to say anything. It is observed that most of the customers are having full

knowledge of the bike before purchasing

It has been seen that In Hero Honda bikes the mileage of the bike and the value that it

adds to the status symbol of the customers influences the decision criteria of most of the

customers. In Bajaj bikes customers gets more influenced by the price and quality of the bike and

also they think that it adds value to their prestige. While in case of TVS bike the economic price

of the bikes influences the buying behavior of the customers.

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CALCULATION:-

Observed data

    income      Total  1-2 lack 2-3 lack 3-4 lack above 4 lack  hero Honda 4 21 2 3 30Bajaj 8 18 4 2 30TVS 10 8 7 5 30 Total 22 45 13 10 90

Expected frequency

    income        1-2 lack 2-3 lack 3-4 lack above 4 lack  hero Honda 7.33 15 4.3 3.33 29.96Bajaj 7.33 15 4.3 3.33 29.96TVS 7.33 15 4.3 3.33 29.96  21.99 45 12.9 9.99  

(Observed data-expected frequency)

    income        1-2 lack 2-3 lack 3-4 lack above 4 lack  hero Honda -3.33 6 -2.3 -0.33 0.04Bajaj 0.67 3 -0.3 -1.33 2.04TVS 2.67 -7 2.7 1.67 0.04

  0.01 2 0.1 0.01  

(Observed data-expected frequency) 2

  1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 11.0889 36 5.29 0.1089Bajaj 0.4489 9 0.09 1.7689TVS 7.1289 49 7.29 2.7889

X2(calculated chi-square) = (OD-EF) 2 /EF

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  1-2 lack 2-3 lack 3-4 lack above 4 lackhero Honda 1.512810368 2.4 1.2302326 0.0327027Bajaj 0.061241473 0.6 0.0209302 0.5312012TVS 0.972564802 3.266666667 1.6953488 0.83750751

Calculated chi-square value 13.16120635

degree of freedom column 4row 3

DF (c-1) * (r-1)DF 6

level of significant 10%

from table value on 10% significant & 6 DFchi-square value 10.645

conclusion :- calculated value is greater than table value so, null hypothesis is rejected, meansBrand preference across all income categories is not equal

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Hero honda

tvs

Any other

ANALYSIS AND INTERPRETATION:-

Q1) Which bike do you have?

Hero Honda 47Tvs 38Any other 15

Analysis : Hero Honda market share is more than 45 % and so we can say that hreo Honda dominate the whole market

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42

0

2

4

6

8

10

12

14

1

Model Name

N o

of

P er s o n s

Tvs

apache

Star cityr

Tvs scootyr

Any other

Q2) Which Model do you Have?

Hero Honda TvsSplender 21 apache 7Passion 13 Star city 12Karizma 7 Tvs scooty 11

Any other 6 Any other 8

0

5

10

15

20

25

1

Model Name

No

of

Per

son

s Hero Honda

Splender

Passion

Karizma

Any other

Analysis : In hero honda Customer prefer splender and tvs customer prefer apache.

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43

Q3) In which family Income level do you Fall?

100000-200000 22200000-300000 45300000-400000 23above 400000 10

0

10

20

30

40

50

1

Income level

No

of P

erso

ns

100000-200000

200000-300000

300000-400000

above 400000

Analysis : IN THIS GRAFE MORE THAN 45% FAMILY IN BETWEEN 2 TO 3 LACK

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44

Q4) For how long do you own a bike?

0-1 year 341-2 year 292-3 year 26above 3 year 11

0

10

20

30

40

No of Persons

1

No of years

0-1 year

1-2 year

2-3 year

above 3 year

Analysis : IN THIS GRAPH ALMOST 34 % OF CUSTMER USING THE BIKE AT PRESENT TIME IN 1 YEAR..

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45

0

5

10

15

20

OfficePurpose

Personalpurpose

JoyPurpose

Other

Purpose

N o

o f P e r s o n s

Hero Honda

Tvs

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

Hero Honda TvsOffice Purpose 9 4Personal purpose 13 15Joy Purpose 19 16Other 6 3

Analysis : In hero honda customer using the bike official used. and tvs customer using the bike personal purpose.

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0

5

10

15

20

25

Hero Honda TVS

Name of Company

Newspaper

Television

Magzine

Friends & Relative

N o

of

P er s o n s

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

Hero Honda TvsNewspaper 4 2

Television 23 16

Magazine 2 1

Friends & Relative 18 19

Analysis : Television adverting is the best for knowing the customer. for selling our product

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47

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

Yes 87%No 5%Cant say 8%

Yes

No

Cant say

Analysis : Yes advertising influence the bike market because 87% people influencd by the advertising

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48

0

5

10

15

20

25

30

Hero Honda TVS

Company Name

N o

of

p er s o n s Yes

No

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

Hero Honda Tvs

Yes 25 23

No 22 15

Analysis; in hero Honda people are less aware as comparison to tvs

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49

0%

20%

40%

60%

80%

100%

Hero Honda Tvs

Company Name

Price

Mileage

Quality

Resale Value

Status symbol

Q9) Which Factor below Influence your decision?

Hero Honda Tvs

Price 72% 78%Mileage 78% 64%Quality 65% 48%Resale Value 40% 28%Status symbol 10% 7%

Analsis price and milage is major facter for purchasing the bike because the ratio is high

No of Persons

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50

0%

20%

40%

60%

80%

100%

Hero Honda Tvs

Company Name

Mileage

Price

Pick up

Maintenance

Look & Shape

Brande Image

N o

of

P er s o n s

Q10) How would you rate the following factors of Bikes with respect to different company?

Hero Honda Tvs

Mileage 74% 72%Price 68% 65%Pick up 70% 80%Maintenance 58% 62%Look & Shape 85% 80%Brand Image 53% 55%

Analsis in hero Honda people more think about the milage and look and shape and in tvs people more concern about pick up

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0

5

10

15

20

25

Yes No Cant say

Views

Hero Honda

Tvs

N o

of

P er s o n s

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

Hero Honda Tvs

Yes 19 21No 17 14Cant say 11 3

Analysis -In hero Honda and tvs both many people think about to change our brand if new feature are come

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9-RESULT:-

To know about the customer preference and decision process with regard to 150cc bike.

To know the Basic consumer buying behaviour and the reasons because of which they

switch from one company to another.

To know about the company’s details (profile, Products)

This study would help in revealing the type and specific qualities of the bikes offered by

the company to their consumers.

To study the satisfaction level of consumers who uses bikes.

To study the factors influencing consumers to buy 150cc bikes.

To study effect of advertisement on the purchasing decision of the consumers

Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation

18 to 30 years because they prefer stylish looks and rest of the models of Hero Honda,

TVS and Bajaj are purchased more by daily users who needs more average of bikes than

looks.

. Hero Honda is considered to be most fuel-efficient bike on Indian roads.

Service & Spare parts are available throughout India in local markets also.

While buying a motorcycle, economy is the main consideration in form of maintenance

cost, fuel efficiency.

Majority of the respondent had bought their motorcycle more than 3 years

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53

It has been seen that In Hero Honda bikes the mileage of the bike and the value that it

adds to the status symbol of the customers influences the decision criteria of most of the

customers. In While in case of TVS bike the economic price of the bikes influences the

buying behavior of the customers.

It is observed that in rating of different features of different bikes people give maximum rating

to the look and shape of the bike. At the second level they givetheir rating to the pick up. At the

third level they rate mileage. And at the fourth level they give points to maintenance. At last they

rate price and brand image.

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Findings :-

• During this research project I came in to contact with many customers who are

having bikes. It has been found that in Hero Honda mostly the customers are

having splendor while the ratio of the customers using Passion, Karizma and

other bikes are comparatively low. In the customers are giving more preference

to Discover and Pulsar models and in case of TVS Bikes the customers are

givig more preference to the other models rather than Flame,Starcityand

Apache. The maximum numbers of customers that are using these bikes fall in

the income group of 200000-300000.

• It has been observed that the customers are using their bikes mostly for official

and personal purpose. It is observed that the awareness of Hero Honda bikes

mostly comes TVS the awareness comes from newspapers and televisions. Out

of the sample size of 90 customers, 65 customers agree with the fact that

advertisements play a very significant role in influencing their behavior to

choose the bike. On the other hand 15 customers do not agree to this fact.

While remaining 10 customers are not sure about it.

• When the customers are asked that are they satisfied with the performance of

their bikes then most of them agrees to the fact. Out of the sample size of 90

customers, 55 customers says that they are satisfied with the performance of

their bikes. On the other hand 28 customers are not satisfied with the

performance of the bikes that they are having. having full knowledge of the

bike before purchasing

• It has been seen that In Hero Honda bikes the mileage of the bike and the value

that it adds to the status symbol of the customers influences the decision

criteria of most of the customers. In While in case of TVS bike the economic

price of the bikes influences the buying behavior of the customers.

• It is observed that in rating of different features of different bikes people give

maximum rating to the look and shape of the bike. At the second level they

givetheir rating to the pick up. At the third level they rate mileage. And at the

fourth level they give points to maintenance. At last they rate price and brand

image.

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.SUMMARY:-

Ever since man evolved into social animal he felt the need for “Transportation”. As he formed

a civilization he felt the need for “Better Transportation”. Today on the threshold of exploring

the universe he feels the need of “Best Transportation”.

Truly the modern world relies on transportation which can be airways, roadways, railways and

on water. Bicycle was the most important part of road transportation in early days and as the

scenario changed bicycle was transformed into a fast, stylish and trendy mode of transport

known as Motorcycle nowadays known as Motorbike.

Each human being that is living in this social world knows the importance of bikes because it

serves the purpose in any kind of situation and in any part of this world.

The topic of the project is Customer Buying Behavior taking TVS for comparison. TVS

motor company is one of the leading bike manufacturers in India. The analysis of the project was

based on customer’s point of view. For the study, both primary data and secondary data were

required. The primary data was collected

based on a survey research, using a structured questionnaire with both open ended and closed-

ended questions.

The sampling procedure used was random sampling for the 1st objective i.e. to understand

consumer needs on motorbikes. For the 2nd objective i.e. to understand the awareness levels of

TVS I went to the prospects and met the respondents to fill the questionnaire. The mode of

survey was of personal interview, where the respondents filled up the questionnaires. The

secondary data was collected from business newspapers, magazines,

Company brochures, journals and the Internet. The major conclusion from this study was that

TVS has to improve itself to gain the 1st position in the market as it is doing well to maintain its

3rd position in the market.

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In terms of competition TVS has neck-to-neck competition with Hero Honda and Bajaj. TVS has

a lot of work to do if it has to take lead and remain the leading manufacturer in India.

10- CONCLUSION AND SUGGESTION:-

The Indian two wheeler industry today offers more than 70 models to a buyer. And

manufacturers are launching new models every day…… More than 20 models were launched in

the last year.

Top this up with a variety of promises ranging from free gifts and financial schemes to the

attractive looking models and jingles in the advertisement.

In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a trying

experience for the common man.

In such a situation, the buyer has to first narrow down his search to a given category of two

wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a rich

father may only look at premium bikes.

CONCLUSION:-

Most of the Pulsar, CBZ & Karizma are purchased by young

generation 18 to 30 because they prefer stylish looks and rest of the

models of Hero Honda are purchased more by daily users who

needs more average of bikes than looks.

Hero Honda is considered to be most fuel-efficient bike on Indian

roads.

Service & Spare parts are available throughout India in local

markets also.

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While buying a motorcycle, economy is the main consideration in

form of maintenance cost, fuel efficiency.

The facts and figures shown in the analysis is correct and the survey has been done in a

good faith and responsibility

As HERO HONDA, BAJAJ and YAMAHA have taken the 1st, 2nd and 3rd position. Thus

TVS motor co. has to make some more efforts to increase the awareness among the

people in the context of bikes.

The respondents have been asked about the most effective slogan in different brands of

bikes in which again HONDA and BAJAJ have taken the lead. TVS motor co. has

emphasized only on VICTOR and not on other bikes, thus people only know about

VICTOR and not other bikes. Print media and different types of media should be used to

make people know about the slogan.

The respondents in the factors, which they consider while purchasing a bike, have done

the ranking. MILEAGE is the first factor following with POWER and STYLE and also

with an adaptable PRICE. The company has to make efforts for making a product that

should have all these three factors with considerable price.

The most influencing factor in purchasing decision of the bike is FAMILY and after that

FRIENDS which is not at all linked with

the company investment. The company generally invests in Dealer promotion and Media,

which is not appropriate as analyzed in this question. Awareness level through Media and dealer

should be increased.

When asked about the experience at the TVS dealership most of the respondents had a

good and average experience with a small number having bad experience. The small

number of bad experience can be avoided by giving warm welcome and good behavior

by the staff.

The respondents who have not visited the TVS dealership are either not interested in TVS

bikes or they are not satisfied with TVS products. In this matter the dealer should

increase the road shows as well as arrange regular customers meeting which will create

interests in other prospects.

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Most of the respondents had knowledge about the TVS bikes, which is a good sign for

the TVS motor company.

In TVS motor company VICTOR is the most popular bike and very interestingly without

any media interaction FIERO F2 has taken the 2nd spot with CENTRA on the 3rd spot

which has taken a lead with only one place from MAX-R .It is recommended that FIERO

F2 should be given equal sales promotion than CENTRA because of its popularity has

come through people network and not through channel media.

The respondents have liked the service facility and the staff but the important factor is the

lack of space. The dealership in Bhilai has to improve the staff as well as the after sales

services and the customer relations.

Celebrity endorsement does not affect most of the respondents whereas only 34% of the

respondents have an affect over the purchasing decision of bike. Company should give

more importance to the product so as to give the best in quality to the customer.

In context to popularity TVS ranks 3rd according to this sample size and thus the

company should introduce new products as well as reposition its product according to the

demand in the market.

In the case of no price consideration TVS ranks 4 th and according to survey analysis the

respondent wants to purchase his dream bike which TVS Company has to make in

comparison with HERO HONDA, BAJAJ and ENFIELD BULLET.

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SUGGESTION:-

Tvs should introduce some more models having more engine power.

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

More service centers should be opened.

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

importance.

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

The price should be economic.

In the analysis the respondents have shown that they consider TVS motor company after

HERO HONDA and BAJAJ and this is a major concern for the company. TVS motor

company has to make some arrangements to increase the awareness level among the

prospects through media.

The company should also emphasize on other bikes excluding TVS VICTOR and TVS

CENTRA because some of the bikes in TVS like Apache RTR are more popular than

these bikes in the surveyed area.

In Bhilai the respondents who have visited the dealership are not satisfied with the

service facilities which can be improved by regular visit of the service managers as well

as providing regular training to the staff as well as the owner.

The dealership in Bhilai also lacks in space, which is a major concern because the first

impression on the mind of the customer is about the window display, which can be

improved with the help of the professionals.

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11 - FUTURE IMPLICATIONS OF THE STUDY :-

The global financial crisis, the consequent serious liquidity issues and higher financing costs are

likely to impact the growth prospects of the two-wheeler industry. Retail finance has become

even more difficult. The tight liquidity will affect the ability of dealers to stock two-wheelers.

The drop in the commodity prices, however, is a welcome break.

The company will continue the vigorous implementation of its improved value-engineering

program to reduce costs. The company continues to maintain the highest quality standards of all

its products.

SCOPE OF THE STUDY

The scope of the study is to study the customer buying behavior of the respondents in New Delhi

and attain the awareness level of the customers. The scope is that the services of the dealer,

advertising media as well as celebrity has made an effect on the customer or not and how much.

This study also allows knowing the future prospects of the company and where it is at present in

the market.

Although the avalanche of motorcycles offered Indian consumers a wide variety of models to

choose from, it also resulted in increased pressure on the companies to concentrate on cost-cuts,

technology enhancements and up-gradations and styling. Their margins came under pressure as

marketing costs escalated.

The companies were forced to reduce prices and offer discounts to survive the competition.

Moreover, analysts were skeptical about the segment's ability to maintain the growth rate in the

years to come. One of the major assumptions underlying the motorcycles rush was that if the

market was considerably large and was growing at a constant pace, there was room for a

profitable existence for all brands.

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In 2001, there were over 30 motorcycle brands in the market. However, with the top five brands

accounting for more than 60% of the market, only 40% of the market was available for all other

new brands put together. Despite the launch of more vehicles, the survival prospects of many of

the individual brands were deemed to be rather bleak.

Further, the growth in the motorcycle segment was dependant on continuing favorable market

conditions. Analysts claimed that to sustain this growth rate, the segment would have to

completely cannibalize the market for scooters and a considerable part of the market for scooters

and mopeds.

Considering the fast growing scooter segment, with high demand from female customers,

followed by the moderately growing moped segment and the restructuring in the scooter segment

with major national and foreign players reinforcing their presence, it was unlikely that the entire

growth in the two-wheeler sector would be due to motorcycles.

Analysts also commented that as the two-wheeler industry had grown steadily for eight years,

stages in the product life cycle would apply to the field sooner, rather than later and the decline

stage would invariably come some day. There was little differentiation between the brands being

launched apart from styling as most companies had introduced their four-stroke vehicles.

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12 - LIMITATION OF THE STUDY: –

• This report incorporates sincere efforts to submit the best possible dossier on the topic

assigned because no study can be perfect. There are bound to be limitations that I faced

and within which I had to work.

• The data used in most part of the report is secondary data, it has inherent discrepancy.

• As TVS is still not a household brand name, some of the respondents were not

completely aware of its products and track record

• Research work was carried out in one Distt of indore only the finding may not be applicable to the other parts of the country because of social and cultural differences.

• The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population.

• Shortage of time is also reason for incomprehensiveness.

• The views of the people are biased therefore it doesn’t reflect true picture.

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13- BIBLOGRAPHY :–

BOOKS:

Name of the book :- Marketing researchAuthor : - Dr. C.B.Mamoria

Name of the book :- Marketing researchAuthor : - Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

Journals published by Hero Honda, Annual Report Journals published by TVs Anural Report

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14- WEBLIOGRAPHY :-

1. www.herohonda.com

2. www.google.com

3. www.tvs.com

4. www.twowheeler.com

5. www.extrememachines.com

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15- APPENDICES:-

QUESTIONNAIRE:-

ANNEXURE

QUESTIONNAIRE

NAME: - ………………………………………………

CONTACT NO ……………………………………….

AGE:- 15-20 20-25

25-30 Above 30

OCCUPATION:- Businessman Employee

Student Other

Q1) Which Bike do you have?

Hero Honda Tvs Any Other

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Q2) Which Model do you have?

Hero Honda: - Splendor Passion

Karizma Other

Tvs: - Apache Scotty

Star city Other

Q3) In which Family Income do you Fall?

100000-200000 200000-300000

300000-400000 Above 400000

Q4) For how long do you own a Bike?

0-1 year 1-2 year

2-3 year above 3 years

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

Office Purpose Personal Purpose

Joy Purpose OtherQ6) How do you come to know about this Motor Bike?

Newspaper Television

Magazines Friends/Relatives

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

Yes No Can’t say

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

Yes No

Q9) Which factor below influence your decision?

Price Mileage Quality

Resale Value Status Symbol

Q10) How would you rate the following factors of bikes with respect to different companies?Hero Honda Tvs

Mileage

Price

Pick up

Maintenance

Look/Shape

Brand Image

Q11) In new bike with good feature comes in, then would you like to change your bikes?

Yes No Can’t say

Q12) Any Suggestions for Company ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Date:

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SAMPLING

Sampling may be defined as the selection of some parts of an agreement or totality for

the purpose of study. All the items in any field of inquiry constitute a universe or

population, a complete enumeration of all the items in the population is known as Census

inquiry. But when the field of inquiry is large this method becomes difficult to adopt

because of the limited no. of resources involved in the case sample survey method is

chosen under which units are selected in such a way that they represent the entire universe.

SAMPLING tools-

CENSUS METHOD : - All the items in any field of inquiry constitute a ‘Universe’ or

‘Population’. A complete enumeration of all the items in the ‘Population’ is known as a

Census inquiry. It can be presumed that in such an inquiry, when all items are covered,

no element of chance is left and highest accuracy is obtained. But in practical it is not true

in all cases. This type of inquiry involves a great deal of time, money and energy.

Therefore, when the field of inquiry is large, this method becomes difficult to adopt

because of the resources involved.

SAMPLING METHOD :- When field studies are undertaken in practical life,

consideration of time and cost almost invariably lead to a selection of respondents i.e.

selection of only few items. The respondent selected should be as representative of total

population. These respondents constitute what is technically called a ‘Sample’ and the

selection process is called ‘Sampling Technique’. The survey so conducted is known as

‘Sample Survey’.

Implementation of Sample Design: - A sample design is a definite plan for obtaining a

sample from a given population. It refers to the technique or the procedure the researcher would

adopt in selecting items for the sample. Sampling design may as well lay down the number of

items to be included in the sample i.e. the size of sample. Sample design is determined before the

data are colleted.

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Steps In Sampling Design :- While developing a research design following items

are taken into consideration:-

VI. Type of universe: - First and the foremost step is to clearly define the

universe to be studied. As I have taken the area of Yamuna Nagar City

(Haryana), so for me here the universe is Yamuna Nagar area. No doubt it is a

finite universe but the area is very big and can’t be covered easily due to

shortage of time.

VII. Sampling unit: - A decision has to be taken concerning a sampling unit

before selecting sample. Here my sample unit includes college going students

who own bikes.

VIII. Size of sample: - This refers to the number of items to be selected from the

universe to constitute a sample. Here I have taken the sample of 200 College

going students who have bikes.

IX. Parameters of interest: - In determining the sample design, one must

consider the question of the specific population parameters which are of

interest. Here I had taken only college going students who own their bike.

X. Sampling procedure: - Finally the technique of selecting the sample is to be

dealt with. That means through which method the sample has been collected.

There are various types of selecting the sample. This includes probability

sampling, random sampling, stratified sampling, cluster sampling,

convenience sampling. Here I have used the cluster sampling method for data

collection, as Yamuna Nagar area is very big and there are many colleges as

well as the hostels.