“COMPARATIVE ANALYSIS OF MARKET SHARE OF
HERO HONDA V/S BAJAJ IN GURGOAN”
Dissertation
SUBMITTED FOR THE PARTIAL FULFILMENT OF
THE REQUIREMENT FOR THE AWARD
OF
Bachelor of Business Administration
SUBMITTED BY:
MANISHA YADAV
ROLL NO.-AURO8O3O25
UNDER THE GUIDENCE OF
FACULTY GUIDE:
MR. HIMANSHU MAHOBIA
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY RAJASTHAN
YEAR OF SUBMISSION: 2011
1
A REPORT ON
COMPARATIVE STUDY OF MARKET SHARE
HERO HONDA AND BAJAJ IN GURGOAN
SUBMITTED BY
MANISHA YADAV
BACHELOR OF BUSINESS ADMINISTRATION
A DISSERTATION SUBMITTED IN PARTIAL
FULFILLMENT
OF THE REQUIREMENTSOF
UG PROGRAM OF BBA
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY RAJASTHAN
2
CERTIFICATE FROM THE FACULTY GUIDE
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY, RAJASTHAN
Name of Faculty: Mr. Himanshu Mahobia
Designation: Assistant Professor
Department: ABS
CERTIFICATE
I certify that the dissertation entitled “A report on comparative analysis of
market share of Hero Honda v/s Bajaj” “submitted for the degree of
Bachelors in Business Administration (BBA) by Manisha Yadav is the
record of research work carried out by her under my guidance and
supervision, and this work has not formed the basis for the award of any
degree, diploma in this or any other University or other similar institution of
Higher learning.
Place: Jaipur
Signature of faculty guide.
Date:
3
ACKNOWLEDGEMENT
The research on “Comparative Study of market share of Bajaj and
Hero Honda” has been given to me as part of the curriculum in 3-Years
Bachelors Degree in Business Administration.
I have tried my best to present this information as clearly as possible using
basic terms that I hope will be comprehended by the widest spectrum of
researchers, analysts and students for further studies.
I have completed this study under the able guidance and supervision of Mr.
HIMANSHU MAHOBIA; I will be failing in my duty if I do not
acknowledge the esteemed scholarly guidance, assistance and knowledge, 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/indirect support during the entire course of this project.
I am also thankful to my friends who helped me a lot in the completion of
this project.
MANISHA YADAV
4
TABLE OF CONTENT
PARTICULARS
CHAPTER – 1
1.1
Introduction
CHAPTER-2
2.1 Review of literature
CHAPTER -3
3.1 Research methodology
3.2 Objectives
3.3 Research
3.4 Research approach
3.5 Sample unit
3.6 Data collection
3.7 Scope
3.8 limitations
CHAPTER-4
History of company
Profile
Key Person
Awards
Timeline of new releases
Products
History of hero Honda
Company profile
Key persons
Awards or recognition
Advertisement strategy
-
ANALYSIS AND INTERPRETATION
CONCLUSION
RECOMMENDATION
BIBLIOGRAPHY
5
CHAPTER-1
6
INTRODUCTION
Introduction the project is about a comparative analysis of Hero Honda and
Bajaj on the basis of mkt. share of the company, customer perception
regarding the products of the company. Consumer behavior, products
feature of the company and performance of the company also include.
The project starts with brief introduction both the company i.e. Hero
Honda and Bajaj which include the profile of the company key persons in
the company board of directors. Awards and recognition, advertisement
strategies, growth of the company.comprative analysis done through both
prima and secondary data. For primary research questionnaire was designed
& respondent taken from customer. Then analyses were done with the help
of pie chart& bar diagrams.
7
CHAPTER-2
8
REVIEW OF LITERATURE
RAJ KUMAR LEISHEMBA (8Aug.2009)TWO WHEELER MAJORS HERO HONDA, BAJAJ AUTO FEEL THE
HEAT, PROFITS DIP AS SALES SLIDE.
The worst fears of two wheeler manufacturers are coming true. After
struggling unsuccessfully to maintain their sales intact, they are now having
to cope with declining bottom line. That all is not well in the two-wheeler
industry can be gauged from the fact that in the first quarter ended June for
the fiscal 2007-08, countrys largest two-wheeler manufacturers, Hero Honda
and Bajaj Auto have posted not only declining sales but also double digit dip
in net profit.
LIJEE PHILIP (Sept 2008) - :
Hero Honda, Bajaj Auto zooms ahead of peers in India scooter market.
Competition notwithstanding, two-wheeler majors Hero Honda and Bajaj
Auto continue to see their market shares growing. The consolidated market
share of Hero Honda and Bajaj Auto (the top two players) has grown from
66 percent in 1999 to 79 percent in the first half of FY05.
The other two-wheeler players, including TVS, LML, Kinetic Engineering,
Honda Motorcycle & Scooter, Majestic Auto, Yamaha and Royal Enfield,
have seen their share dropping from 34 percent to 21 percent in the same
period.
9
KUSHAN MITRA (Mar.2006)
The Moto-Race Gets Hotter Hero Honda is still in front by a long way, but
Bajaj Auto is gaining ground, slowly but surely.
Sales of seven million vehicles in 2005-06, six lakh in April 2006- it is not a
bad time to be a two-wheeler manufacturer in India. But it is an even better
time to be one of the top two manufacturers, the Pawan Munjals led Hero
Honda Motors Limited (HHML) and the Rajiv Bajaj led Bajaj Auto Limited
(BAL). The two control close to 80 per cent of the motorcycle market. But
you can't expect them to be content with their respective positions, what
with bal determined to wrest back the # 1 slot it lost to HHML back in the
late nineties, and HHML resolute about clinging on to the numero uno
crown.
ASIA PULSE NEWS (2008)
INDIA'S BAJAJ AUTO READY TO MEET PRICE WAR.
PUNE, Sept 12 Asia Pulse - Not ready to be cowed by competitive pressures
despite a strain on margins, Bajaj Auto has said it was ready to meet any
kind of price war "head-on" and could even afford a further reduction in
prices.
10
CHAPTER-3
RESEARCH METHODLOGY
OBJECTIVES:-
1. To know the market share of Bajaj & Hero Honda.
2. To know the perception of customers regarding bikes.
3. To determine the customers satisfaction regarding bikes.
4. To determine the factors influencing the choice of customers regarding
bikes.
11
RESEARCH
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.
COLLECTION OF DATA
12
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 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. Questionnaire method
telephone interview also conducted.
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 Dharuhera and Gurgoan
13
SAMPLE SIZE
100
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 Bajaj V/S Hero
Honda and data was taken in the Dharuhera and Gurgoan.
LIMITATIONS
Research work was carried out in one Distt of Haryana (rewari and
Gurgoan) 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.
14
The views of the people are biased therefore it doesn’t reflect true picture.
15
CHAPTER-4
HISTORY OF THE COMPANY
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj
Trading Corporation Private Limited. It started off by selling imported twoand three-wheelers in India. In 1959, it obtained license from the
Government of India to manufacture two- and three-wheelers and it went
public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it
managed to produce and sell 100,000 vehicles in a single financial year. In
1985, it started producing at Waluj in Aurangabad. In 1986, it managed to
produce and sell 500,000 vehicles in a single financial year. In 1995, it
rolled out its ten millionth vehicles and produced and sold 1 million vehicles
in a year.
16
Bajaj Auto limited is one of the largest two wheeler manufacturing company
in India apart from producing two wheelers they also manufacture three
wheelers. The company had started way back in 1945. Initially it used to
import the two wheelers from outside, but from 1959 it started
manufacturing of two wheelers in the 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 Indian milieu and over the years have come to
represent the aspirations of modern India. Bajaj Auto also has a technical tie
up with Kawasaki heavy industries of Japan 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 of Kawasaki heavy
industries. The core brand values of Bajaj Auto limited includes Learning,
Innovation, Perfection, Speed and Transparency.
Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj
and Chakan in Maharashtra, western India, which produced 2,314,787
vehicles in 2007-08. The sales are backed by a network of after sales service
and
maintenance
work
shops
all
over
the
country.
Bajaj Auto has products which cater to every segment of the Indian two
wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry
level. Similarly Bajaj Discover 125 offers the consumer a great performance
without making a big hole in the pocket. Bajaj Auto has three manufacturing
units in the country at Akurdi, Waluj and Chakan in Maharashtra, western
India, which produced 2,314,787 vehicles in 2005-06. The sales are backed
by a network of after sales service and maintenance work shops all over the
17
country.
PROFILE
Founder
Jamnalal Bajaj
Year of Establishment
1926
Industry
Automotive - Two & Three Wheelers
Business Group
The Bajaj Group
Listings & its codes
Presence
BSE
–
Code:
500490;
NSE
-
Code:
BAJAJAUTO
Distribution
network
covers
50
countries.
Dominant presence in Sri Lanka, Bangladesh,
Columbia, Guatemala, Peru, Egypt, Iran and
Indonesia.
Joint Venture
Kawasaki Heavy Industries of Japan
18
Registered
&
Head Akurdi
Office
Pune
-
411035
India
Tel.:
+(91)-(20)-27472851
Fax: +(91)-(20)-27473398
Works
•
Akurdi, Pune 411035
•
Bajaj Nagar, Waluj Aurangabad 431136
•
Chakan Industrial Area, Chakan, Pune
411501
E-mail
rahulbajaj@bajajauto.co.in
Website
www.bajajauto.com
BOARD OF DIRECTORS
RAHUL BAJAJ
CHAIRMAN
MADHUR BAJAJ
RAJIV BAJAJ
VICECHAIRMAN & WHOLE
DIRECTOR
MANAGING DIRECTOR
SANJIV BAJAJ
EXECUTIVE DIRECTOR
D.S. BAJAJ
WHOLE TIME DIRECTOR
KANTIKUMAR R. PODAR
DIRECTOR
SHEKHAR BAJAJ
DIRECTOR
J.N.GODREJ
DIRECTOR
TIME
AWARD AND RECOGNITION
19
Type Public
Founded
1945
Headquarters
Pune, India
Key people
Rahul Bajaj (Chairman)
Rs. 1,01,063 billion (2006) or
Revenue
USD 1.87 billion
Net income
Rs. 17,016 billion
Employees
???
20
2008
•
Bajaj Discover DTS-i was chosen as Bike of the Year
and Indigenous Design of the Year by Overdrive
2006
Awards.
•
Bajaj Auto was chosen as Bike Maker of the Year by
ICICI Bank Overdrive Awards.
•
2004
DTS-i Technology was chosen as Auto Tech of the
Year by ICICI Bank Overdrive Awards.
•
Bajaj Pulsar DTS-i became Bike of the Year by ICICI
Bank Overdrive Awards.
•
Wind 125 chosen as the Two Wheeler of the Year
by CNBC AUTOCAR Awards.
•
Wind 125 chosen as the Bike of the Year by
Business Standard Motoring.
2003
•
Bajaj Pulsar 180 DTS-i chosen as Wheels Viewers
Choice Two Wheeler of the Year and Best Two
Wheeler by BBC World Wheels Award.
•
Bajaj Pulsar 150 DTS-i chosen as Best Two Wheeler
between Rs. 45,000 to Rs. 55,000 by BBC World
Wheels Award.
•
Bajaj Boxer AT KTEC chosen as Best Two Wheeler
under Rs. 30,000 by BBC World Wheels Award.
•
Bajaj Pulsar chosen as Motorcycle Total Customer
Satisfaction Study by NFO Automotive.
•
Bajaj Pulsar chosen as Bike of the Year by ICICI
Bank OVERDRIVE Awards.
2002
•
Bajaj Pulsar chosen as Most Exciting Bike of the
Year by OVERDRIVE Awards.
•
Bajaj Eliminator chosen as Bike of the Year by
OVERDRIVE Awards.
2001
•
21
Bajaj Eliminator chosen as Most Exciting Bike of the
Year by OVERDRIVE Awards.
TIMELINE OF NEW REALESES
•
1971 - three-wheeler goods carrier
•
1972 - Bajaj Chetek
•
1976 - Bajaj Super
•
1977 - Rear engine Auto rickshaw
•
1981 - Bajaj M-50
•
1986 - Bajaj M-80, Kawasaki Bajaj KB100
•
1990 - Bajaj Sunny
•
1994 - Bajaj Classic
•
1995 - Bajaj Super Excel
•
1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Auto rickshaw
•
1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke
scooter)
•
2000 - Bajaj Safire
•
2001 - Eliminator, Pulsar
•
2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
22
•
2004 - Bajaj CT 100, New Bajaj Chetek 4-stroke with Wonder Gear,
Bajaj Discover DTS-i
•
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
•
2006 - Bajaj Platina
•
2007 - Bajaj Pulsar-200
PRODUCTS OF BAJAJ
BAJAJ XCD
BAJAJ PULSAR
23
BAJAJ BOXER
BAJAJ WIND
BAJAJ PULSAR 150cc
BAJAJ PLATINA
24
BAJAJ CT100
BAJAJ PULSAR 220CC
25
BAJAJ DISCOVER
26
BAJAJ BLADE
UPCOMING MODELS
1 Bajaj Blade
2 Bajaj Sonic
ADVERTISMENT STRATEGY
Bajaj is always known for its outstanding ads over the period of time.
Since its inception, Bajaj has come out with variety of ads and were always
27
successful in their advertisements. Scooters were well known by the brand
name of Bajaj. Be it any scooter, one used to recognize it by the brand name
Bajaj. This was the identity a decade ago which the Bajaj has still
maintained. Bajaj is always known for its ads without well-known brand
ambassadors which is again a plus point to its cart as it saves a huge cost in
terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used
to convey the feeling of ‘Indianans’ in its ads. With a punch line ‘Hamara
Bajaj’ Bajaj drove into everybody’s hearts and the title song of ‘Naye
Bharat Ki Naye Tasveer’ added a great value to its mobikes and scooters. A
couple of years back, Bajaj had introduced an advertisement which
promoted all the different ranges it had, wherein they had shown each
product they had with a feeling of Indianness. Example: Eliminator passesby a rangoli and drives slowly sideways without disturbing it. People on
boxer pass-by a temple and bend their head to give a little offering. Such ads
had revealing Indian culture had a great effect on Indians and Bajaj was
successful in most of its ads.
But recently, Bajaj had changed its brand logo along with its punch line i.e.
‘Hamara Bajaj’ got converted to ‘Inspiring Confidence’. The reason for
this change as told by the company officials was to keep pace with the new
technologies in the fast moving world. Even though it had changed its punch
line, it didn’t have much effect on its brand image.
28
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 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
29
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.
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, Bajaj Auto Ltd.
surpassed API and remained through the turn of the century from its
association with Piaggio of Italy (manufacturer of Vespa)..
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
30
ventures. The two-wheeler market 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 market dynamics
from the supply side to the demand side. With a larger selection of twowheelers 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
Ideal Jaws and Escorts took the middle and lower end of the market
respectively.
• Hero Honda enjoys a significant brand premium. Its aggressive pricing
strategy to take on the competition has helped it in volume growth.
• Variant launches in each of Splendor and Passion has helped in
stemming the loss in market share in the face of the competition. Hero
Honda now plans to launch two new models in the 100cc segment in
FY05 on a new platform.
•
The company has started logging good volume growth after the launch of
Passion Plus and Splendor Plus as well as the CD-Dawn, which has also
rejuvenated its product range. Volumes should improve further, due the
Aggressive cost controls and significant economies of scale are expected
to aid Hero Honda in retaining margins.
31
• Hero Honda will continue to be an attractive dividend yield play as the
company continues to generate significant free cash flows as its capital
requirements are limited
BOARD OF DIRECTORS
MR.BRIJMOHON LAL MUNJAL
CHAIRMAN &WHOLE TIME
DIRECTOR
MR. PAWAN MUNJAL
MANAGING DIRECTOR
MR.TOSHIAKI
JT.MANAGING DIRECTOR
MR.TAKO EGUCHI
WHOLE TIME DIRECTOR
MR.SATYANAND MUNJAL
NON- EXECUTIVE DIRECTOR
MR.OM PARKASH MUNJAL
NON- EXECUTIVE DIRECTOR
MR.MASAHORO
NON- EXECUTIVE DIRECTOR
MR.NARINDER NATH VOHRA
NON- EXECUTIVE DIRECTOR
32
Type
Public company BSE:HERO HONDA
Founded
January 19, 1984 in Gurgaon, Haryana, India
Headquarters
Haryana, India
Om Prakash Munjal, Founder
Key people
Industry
Products
Revenue
Website
Mr. Brijmohan Lall Munjal, Chairman
Mr. Toshiaki Nakagawa, Joint Managing
Director
Mr. Pawan Munjal, Managing Director
Automotive
Motorcycles, Scooters
U$ 2.8 billion
http://www.herohonda.com/site/home/home.asp
AWARDS
2006
'Lifetime Achievement Award' for Translating Excellence in Corporate
Governance into
33
2005
Indian
Automotive
Hall
of
Pride
by
Overdrive
CNBC TV18 Commendation of Business Leadership displaying extraordinary
Corporate
Padma
Leadership
Bhushan
and
Entrepreneurial
by
Government
Spirit
of
India
Doctor of Letters (Honoris Causa) by Hemwati Nandan Bahuguna Garhwal
University,
Srinagar
Garhwal
Lifetime Achievement Award by ET Awards for Corporate Excellence
2004
Life Time Achievement Award for Management by All India Management
Association
D.
Litt.
Lifetime
(Honoris
Achievement
Causa)
Award
by
Banaras
by
Amity
Hindu
University
Business
School
Lifetime Achievement Award by HT Power Jobs
2002
Entrepreneur
of
the
Year
Award
by
Business
Standard
Giants International Award to the Chairman in the field of Business & Industry
Business Leadership Award by Madras Management Association
2001
Entrepreneur of the Year Award by Ernst & Young
2000
Sir Jehangir Ghandy Medal for Industrial Peace - by XLRI, Jamshedpur
1998
Business Leader of the Year by Business Baron
1997
Distinguished Entrepreneurship Award by PHD Chambers of Commerce &
Industry
1995
National Award for outstanding contribution to the Development of Indian Small
Scale Industry (NSIC Award - Presented by President of India)
1994
Businessman of the Year by Business India Group of Publications
1992
Honorary Membership - Indian Institution of Industrial Engineering Award
• Hero Honda enjoys a significant brand premium. Its aggressive pricing
strategy to take on the competition has helped it in volume growth.
34
• Variant launches in each of Splendor and Passion has helped in stemming
the loss in market share in the face of the competition. Hero Honda now
plans to launch two new models in the 100cc segment in FY05 on a new
platform.
• The company has started logging good volume growth after the launch of
Passion Plus and Splendor Plus as well as the CD-Dawn, which has also
rejuvenated its product range. Volumes should improve further, due to the
base effect and improved rural sentiment on the back of higher farm
incomes.
• Aggressive cost controls and significant economies of scale are expected
to aid Hero Honda in retaining margins.
• Hero Honda will continue to be an attractive dividend yield play as the
company continues to generate significant free cash flows as its capital
requirements are limited
HERO HONDA HEADQUARTERS
35
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.
PRODUCTSOF HERO HONDA
36
CBZ
AMBITION
PASSION PLUS
KRIZMA
37
SPLENDOR PLUS
CD100
HUNK
GLAMBOUR
38
PLESURE
ADVERTISMENT STRTEGY
“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
39
between technology, systems, and human resources to provide products and
services that meet the quality, performance, and price aspirations of our
customers.
While doing so, we maintain the highest standards of ethics and societal
responsibilities, constantly innovate products and processes, and develop
teams that keep the momentum going to take the company to excellence in
the new millennium”. 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 OF THE COMPANY
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.
40
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 twowheeler 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.
41
ANCILLARISATION
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
42
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 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.
43
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.
44
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
ANALYSIS OR INTERPATATION
Q1) Which bike do you have?
Hero Honda
47
Bajaj
38
Any other
15
45
Q2) Which Model do you Have?
HERO HONDA
NO.
BAJAJ
NO
SPLENDER
21
CT 100
7
PASSION
13
DISCOVER
12
KARIZMA
7
PULSAR
11
ANY OTHER
6
ANY OTHER
8
46
47
Q3) In which family Income level do you Fall?
100000 – 200000
22
48
200000 – 300000
45
300000 – 400000
23
ABOVE – 400000
10
No of Persons
50
40
100000-200000
30
200000-300000
20
300000-400000
10
abov e 400000
0
1
In co m e le ve l
Q4) For how long do you own a bike?
49
0 -1
34
1 -2 YEAR
29
2 -3 YEAR
26
ABOVE – 3 YEAR
11
Q5) For what purpose do you use your Motor Bike?
50
Q6) How do you come to know about this Motor Bike
51
HERO HONDA
BAJAJ
NEWS PAPERS
4
2
TELEVISION
23
16
MAGAZINE
2
1
FRIENDS & RELATIVE
18
19
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
52
YES
87%
NO
5%
CANT’SAY
8%
Q8) Do you have full knowledge about Bikes before
buying?
53
HERO HONDA
BAJAJ
YES
25
23
NO
22
15
30
No of persons
25
20
Y es
15
No
10
5
0
Hero Honda
Bajaj
Com pany Nam e
Q9) Which Factor below Influence your decision?
54
80%
70%
60%
50%
PRICE
MILEAGE
QUALITY
RESALE VALUE
STATUSSYMBOL
40%
30%
20%
10%
0%
Q10) How would you rate the following factors of Bikes
with respect to different company?
HERO HONDA
BAJAJ
MILEAGE
70%
80%
PRICE
58%
62%
PICK UP
85%
80%
MAINTANCE
53%
55%
BRAND IMAGE
65%
58%
55
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
MILEAGE
PRICE
PICKUP
MAINTANCE
BRAND IMAGE
HERO
HONDA
BAJAJ
Q11) If new Bike with good features comes in, then
would you like to change your bike?
Yes
No
Cant say
Hero Honda
Bajaj
19
17
11
21
14
3
56
25
No of Persons
20
15
Hero Honda
10
Bajaj
5
0
Y es
No
Cant s ay
V ie w s
CONCLUSION
1.
2.
3.
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.
57
4.
5.
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.
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.
58
BIBLIOGRAPHY
1. www.herohonda.com
2. www.google.com
3. www.bajaj.com
4. www.twowheeler.com
5. www.extrememachines.com
59
QUESTIONNAIRE
NAME: - ………………………………………………
CONTACT NO ……………………………………….
AGE:-
OCCUPATION:-
15-20
20-25
25.30
Above 30
Businessman
Employee
Student
Other
Q1) Which Bike do you have?
60
Hero Honda
Bajaj
Any Other
Q2) Which Model do you have?
Hero Honda: -
Bajaj: -
Splendor
Passion
Karizma
Other
CT 100
Discover
Pulsar
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
Other
Q6) How do you come to know about this Motor Bike?
Newspaper
Television
61
Magazines
Friends/Relatives
Q7) Does Advertisement Influence your decision in choosing a Motor Bike?
Yes
No
Can’t say
Q8) Do you have full knowledge about Bikes before buying?
Yes
No
Q9) Which factor below influence your decision?
Price
Mileage
Resale Value
Status Symbol
Quality
Q10) How would you rate the following factors of bikes with respect to different
companies?
Hero Honda
Bajaj
Mileage
Price
Pick up
Maintenance
Look/Shape
BRAND IMAGE
62
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:
(Signature)
63