PROJECT REPORT OF RESEARCH METHODOLOGY ON

COMPARATIVE STUDY OF V/S

SUBMITED TO SUBMITED BY

Prof. SANJEEV KUMAR

ANKIT RANA
Roll No. 7116223117 MBA 2ND Semester

RIMT - IMCT (REGIONAL INSTITUTE OF MANAGEMENT AND COMPUTER TECHNOLOGY)

MANDI GOBINDGARH

CERTIFICATE
This is to certify that Mr. Ankit Rana has completed his project report title Comparative Study of Bajaj V/S Hero Honda under my supervision. To the best of my knowledge and belief this is his original work and this, wholly or partially, has not been submitted for any degree of this or any other University.

Date:

Mr. Rajesh Chawla ( Project Guide )

Vs.

ACKNOWLEDGEMENT
The research on Comparative Study between Bajaj and Hero Honda has been given to me as part of the curriculum in 2-Years Bachelor 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. Rajesh Chawla I will be failed 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 also thankful to my friend who helped me a lot in the completion of this project.

ANKIT RANA

INDEX
Sr No. 1. 2. Particulars Page no HISTORY OF BAJAJ - Profile - Key Person - Bajaj Intro - Company History - Timeline of new releases

3.

HISTORY OF HERO HONDA - Board of Directors - Company Profile RESEARCH METHODOLOGY - Data Source - Research Approach - Sampling unit - Data Completion and Analysis - Scope OBJECTIVE OF THE STUDY ANALYSIS AND INTERPRETATION

14

23

4.

5. 25 6. 7. 8. 9. 10. BIBLIOGRAPHY RECOMMENDATION CONCLUSION LIMITATION OF RESEARCH STUDY 41 43 27 39

11.

ANNEXURE

45

INTRODUCTION
Peter Drucker called the automobile industry as "the industry of industries". During the last few years, the production and management systems have been revolutionized in the automobile industry (Karmokolias, 1990). One of the major changes in the industry has been the opening up and growth of several emerging markets. In 1991, the Government of India embarked on an ambitious structural adjustment programme aimed at economic liberalization, based on the pillars of Delicensing, Decontrol, Deregulation and Devaluation. Post-liberalization, the Government of India's new automobile policy announced in June 1993 contained measures, such as delicensing, automatic approval for foreign holding of 51% in Indian companies, abolition of phased manufacturing programme, reduction of excise duty to 40% and import duties of CKD to 50% and of CBU to 110%, and commitment to indigenization schedules. The Indian automotive industry has been on a high growth path in the domestic market, given strong demandpush factors coupled with an encouraging policy environment. Changing lifestyles, increasing disposable income, deterioration of public transport and accelerated urbanisation is leading to a growth in demand for passenger vehicles and 2-wheelers. Improving rural income on account of the rise in the agri-commodity prices and near normal monsoons together can boost the demand for tractors. Domestic demands for cars are expected to grow at a double-digit rate for the next three to four years. The brilliant performance of the automotive sector is attributed to better performance of the economy and high all round growth leading to robust GDP growth, improved infrastructure development, excise duty reduction on passenger vehicles, improved financing of second

hand vehicles, availability of finance in rural and semi-urban areas and the emergence of India as a manufacturing hub for the automotive industry. Investment upto Rs 30,000 crore has been planned for the Sector, by leading Indian and global players, by 2010.

The Indian automotive industry consists of five segments: commercial vehicles; multiutility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic market and 453,591 units exported during the first nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties.The two-wheeler industry (henceforth TWI) in India has been in existence since 1955. It consists of three segments viz., scooters, motorcycles, and mopeds. The increase in sales volume of this industry is proof of its high growth. In 1971, sales were around 0.1 million units per annum. But by 1998,

this figure had risen to 3 million units per annum. Similarly, capacities of production have also increased from about 0.2 million units of annual capacity in the seventies to more than 4 million units in the late nineties. The two-wheeler industry in India has to a great extent been shaped by the evolution of the industrial policy of the country. Regulatory policies like FERA and MRTP caused the growth of some segments in the industry like motorcycles to stagnate. These were later able to grow (both in terms of overall sales volumes and number of players) once foreign investments were allowed in 1981. The reforms in the eighties like broadbanding caused the entry of several new firms and products which caused the existing technologically outdated products to lose sales volume and/or exit the market. Finally, with liberalization in the nineties, the industry witnessed a proliferation in brands. The technological backwardness of the Indian two-wheeler industry was one of the reasons for the initiation of reforms in 1981. Foreign collaborations were allowed for all two-wheelers up to an engine capacity of 100 cc. This prompted a spate of new entries into the industry the majority of which entered the motorcycle segment, bringing with them new technology that resulted in more efficient production processes and products. The variety in products available also improved after broadbanding was allowed in the industry in 1985 as a part of NEP. This, coupled with the announcement of the MES of production for the two wheeler industry, gave firms the flexibility to choose an optimal product and capacity mix which could better incorporate market demand into their production strategy and thereby improve their capacity utilization and efficiency. These reforms had two major effects on the industry: First, licensed capacities went up to 1.1 million units per annum overshooting the 0.675 million units per annum target set in the

Sixth Plan. Second, several existing but weaker players died out giving way to new entrants and superior products.

In a consumer durables industry in which there is a proliferation of brands, we expect the long run competitive structure at the level of the industry to be oligopolistic. This is due to the fact that in order to survive firms must introduce new brands which might improve capacity utilization even as this induces brand competition. This, in turn, will cause only a few large firms in the industry to survive indicating that in the long-run, a brand proliferated consumer durable industry will tend towards oligopoly. We expect a general downward stickiness in prices and resultant increase of volatility in non-price variables such as sales volumes, market-shares etc. Convergence is likely to be absolute at the level of the segment and conditional at the level of the industry. Competitive strategies (which include product development and other strategies aimed at innovation and technological change) are more inter-dependent at the level of the market-segment than at the level of the industry. This is due to the fact that within each segment the products are, to a large extent, similar. Hence we can expect convergence to be absolute at the

level of the segment and conditional at the level of the industry.Two-wheeler sales continue to be buoyant with a 19% growth joy, driven by its motorcycle segment that has posted a rise of 24%. Bajaj Autos market share in the domestic motorcycle market has improved from 23% in FY03 to 30% in FY06. Hero Honda, the largest motorcycle manufacturer in India, with a domestic market share of 50% in FY06, was down from 52% in FY05, while the market share of TVS Motors is 18%. The Indian two-wheeler industry is entering a strong secular growth phase, driven by increasing affordability, easy availability of finance, and accelerating exports. The next phase of earnings growth will be driven by unit volume growth, while the four-wheeler passenger car industry is driven by low penetration, increasing consumer aspiration levels, increasing affordability, and proliferation of new models. Some of the features that deserve attention in respect of the Indian two wheeler segment are as mentioned: The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units. The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level. The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2006-07. India is likely to export 1.39 million two-wheelers in 2011-12 compared with 590,000 in 2006-07.

 Total investment for new capacity generation in two-wheeler segment is likely to be more than $2.2 billion (INR10, 000 crore). Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers.

After facing its worst recession during the early 1990s, the industry bounced back with a 25% increase in volume sales in FY1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% that year. However, sales picked up thereafter mainly on the strength of an increase in the disposable income

of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall twowheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure 1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.

INTRODUCTION
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 2005-06. 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.

PROFILE:
Founder Year of Establishment Industry Business Group Listings & its codes Presence Jamnalal Bajaj 1926 Automotive - Two & Three Wheelers The Bajaj Group BSE Code: 500490; NSE - Code: BAJAJAUTO Distribution network covers 50 countries. Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Kawasaki Heavy Industries of Japan Akurdi Pune - 411035 India Tel.: +(91)-(20)-27472851 Fax: +(91)-(20)-27473398

Joint Venture Registered & Head Office

Works

Akurdi, Pune 411035 Bajaj Nagar, Waluj Aurangabad 431136 Chakan Industrial Area, Chakan, Pune 411501

E-mail Website

rahulbajaj@bajajauto.co.in www.bajajauto.com

KEY PERSONS:
Board of Directors Rahul Bajaj Madhur Bajaj Rajiv Bajaj Sanjiv Bajaj D.S. Mehta Kantikumar R. Podar Shekhar Bajaj D.J. Balaji Rao J.N. Godrej S.H. Khan Mrs. Suman Kirloskar Naresh Chandra Nanoo Pamnani Manish Kejriwal P Murari Niraj Bajaj Committees of the Board Audit Committee S.H. Khan D.J. Balaji Rao J.N. Godrej Naresh Chandra Nanoo Pamnani Chairman Vice Chairman & Whole-Time Director Managing Director Executive Director Whole-Time Director Director Director Director Director Director Director Director Director Director Director Director

Chairman

Shareholders & Investors Grievance committee Chairman D.J. Balaji Rao J.N. Godrej Naresh Chandra S. H. Khan Remuneration committee

D.J. Balaji Rao S.H. Khan Naresh Chandra

Chairman

Registered under the Indian Companies Act, VII of 1913 REGISTERED OFFICE Akurdi, Pune 411 035 WORKS Akurdi, Pune 411 035 Bajaj Nagar, Waluj Aurangabad 431 136 Chakan Industrial Area, Chakan, Pune 411 501

Bajaj Autos Ltd.

Bajaj Auto Limited

Type Founded Headquarters Key people Revenue Net income Employees Website

Public 1945 Pune, India Rahul Bajaj (Chairman) Rs. 1,01,063 billion (2006) or USD 1.87 billion Rs. 17,016 billion ??? www.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes motorscooters, motorcycles and the auto rickshaw.

BAJAJ COMPANY HISTORY

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 vehicle and produced and sold 1 million vehicles in a year. Timeline of new releases

1971 - three-wheeler goods carrier 1972 - Bajaj Chetak 1976 - Bajaj Super 1977 - Rear engine Autorickshaw 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 Autorickshaw 1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter) 2000 - Bajaj Saffire 2001 - Eliminator, Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200

Some of the models that Bajaj makes (or has made) are -: Scooters

o o o o o o

Bajaj Sunny Bajaj Chetak Bajaj Cub Bajaj Super Bajaj Wave Bajaj Legend

Motorcycles
o o o o o o o o o

Kawasaki Eliminator Bajaj Pulsar Bajaj Kawasaki Wind 125 Bajaj Boxer Bajaj CT 100 Bajaj Platina Bajaj Caliber Bajaj Discover Bajaj Avenger

Upcoming Models

Bajaj Pulsar 220 DTS-Fi Bajaj Krystal Bajaj Blade Bajaj Sonic

New Image

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

INTRODUCTION

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 1950s 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 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, before the economic liberalization, made business easier for local players to have a sellers market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj 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, 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.

BOARD OF DIRECTORS
No. Name of the Directors 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Takao Eguchi Mr. Satyanand Munjal Mr. Om Prakash Munjal Mr. Tatsuhiro Oyama Mr. Masahiro Takedagawa Mr. Narinder Nath Vohra Mr. Pradeep Dinodia Gen.(Retd.) Ved Prakash Malik Mr. Analjit Singh Dr. Pritam Singh Ms. Shobhana Bhartia Dr. Vijay Laxman Kelkar Designation Chairman & Whole-time Director Managing Director Jt. Managing Director Whole-time Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director

HERO HONDA COMPANY HISTORY

Hero Honda is Indias largest motorcycle company with 2004-05 sales of 26.2 lakh units, giving it a market share of 51.5% in motorcycles. Founded in 1984 in a joint venture with Honda Motors, Japan, Hero Honda is one of the most profitable and smoothly operating JVs for Honda Motors anywhere in the world, giving it a foothold in one of the worlds largest and fastest growing two wheeler markets. In 1985-86, Hero Honda sold just 43, 000 units, launching its business with the CD-100; Five years later, in 2000-01, it sold over 10 lakh, and in

another five years, doubled that to over 25 lakh units. In 1987, it started the engines plant as well, and produced with 100,000th bike that year. 1989 saw the launch of the Sleek, now discontinued. It was in 1994 that Hero Honda introduced the Splendor, which would go on to become the worlds single largest selling motorbike brand. In 1995, Hero Honda was producing 800 bikes a day, 4 times the number of bikes it could produce a day when it started up. By 1997, the company was producing 1200 bikes a day. In 2001, Joy and Passion were launched, and the Ambition was launched in 2002. Since then, the company launched Karizma, at Rs 80000 one of the most expensive heavy-cc bikes (250cc) in India, but which once again belied the general belief of India as a low-price market. The company was also surprised when demand for this expensive bike came from rural and semi urban areas and it sold 2000 bikes a month for a few months. This bike opened up a whole upper cc segment in bikes. Today Bajaj Pulsar is its biggest competitor in the 250cc range. It was the first to herald the shift from scooters to motorcycles with style, power and competitive pricing. For much of the early 1990s, established players like TVS Motors and Bajaj Auto suffered reverses as the market shifted to motorcycles. Today, the scenario is different as both these competitors have brands that challenge Hero Honda, but market leadership still remains with Hero Honda. It was also the first to create critical mass in the 75-125cc ranges, where most brands compete. Hero Honda set a first with its dividend policy as well, announcing a 1000% dividend in 2003-04. With the motorcycle business doing well, Honda Motors announced its own entry into India but not in the segments where Hero Honda operated; also the technical JV was extended for another decade. Hero Honda sales for March 2005 were Rs 7,421 crore, against Rs 5,832 crore in March 04. Net profits stood at Rs

810 crore against Rs 728 crore in March 04.

Hero Honda Motorcycle Ltd.

Type Founded Headquarters

Public company BSE:HEROHONDA M January 19, 1984 in Gurgaon, Haryana, India Haryana, India Om Prakash Munjal, Founder Mr. Brijmohan Lall Munjal, Mr. Toshiaki Nakagawa, Joint Managing Director Mr. Pawan Munjal, Managing Director Chairman

Key people

Industry Products Revenue Website

Automotive Motorcycles, Scooters U$ 2.8 billion http://www.herohonda.com/site/home/home.asp

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group 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.

Models
Bikes

Hero Honda Splendor Plus Hero Honda Passion Plus Hero Honda Karizma Hero Honda CBZ

Hero Honda Super Splendor Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda Achiever Hero Honda Glamour Hero Honda Ambition

Hero Honda "Splendor" Model

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 1940s and turned into the worlds 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 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 -: 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 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

RESEARCH METHODOLOGY
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 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.

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.

ANALYSIS & INTERPRETATION

Q1) Which bike do you have? Hero Honda Bajaj Any other 47 38 15

Q2) Which Model do you Have? Hero Honda Splender Passion Karizma Any other 21 13 7 6 Bajaj CT 100 Discover Pulsar Any other 7 12 11 8

Q3) In which family Income level do you Fall? 100000-200000 200000-300000 300000-400000 above 400000 22 45 23 10

Q4) For how long do you own a bike? 0-1 year 1-2 year 2-3 year above 3 year 34 29 26 11

Q5) For what purpose do you use your Motor Bike? Office Purpose Personal purpose Joy Purpose Other Hero Honda 9 13 19 6 Bajaj 4 15 16 3

Q6) How do you come to know about this Motor Bike? Newspaper Television Magazine Friends & Relative Hero Honda 4 23 2 18 Bajaj 2 16 1 19

Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say 87% 5% 8%

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

Hero Honda Yes No 25 22

Bajaj 23 15

Q9) Which Factor below Influence your decision? Hero Honda Price Mileage Quality Resale Value Status symbol 72% 78% 65% 40% 10% Bajaj 78% 64% 48% 28% 7%

Q10) How would you rate the following factors of Bikes with respect to different company? Hero Honda Mileage Price Pick up Maintenance Look & Shape Brand Image 74% 68% 70% 58% 85% 53% Bajaj 72% 65% 80% 62% 80% 55%

Q11) If new Bike with good features comes in, then would you like to change your bike? Hero Honda Yes No Cant say 19 17 11 Bajaj 21 14 3

ENCLOSURE

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. 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.

SUGGESTION&RECOMMENDATIONS
Bajaj 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.

BIBLIOGRAPHY

www.herohonda.com www.google.com www.bajaj.com www.twowheeler.com www.extrememachines.com

QUESTIONNAIRE
NAME: - CONTACT NO:- . ADRESS:-.. Date: . Place

AGE:-

15-20 25.30

20-25 Above 30

OCCUPATION:-

Businessman Student

Employee Other

Q1) Which Bike do you have? Hero Honda Q2) Which Model do you have? Hero Honda: Splendor Karizma Bajaj: CT 100 Pulsar Q3) In which Family Income do you Fall? 100000-200000 300000-400000 Q4) For how long do you own a Bike? 0-1 year 2-3 year Q5) For what purpose do you use your Motor Bike? Office Purpose Joy Purpose Personal Purpose Other 1-2 year above 3 years 200000-300000 Above 400000 Passion Other Discover Other Bajaj Any Other

Q6) How do you come to know about this Motor Bike? Newspaper Magazines Television Friends/Relatives

Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say

Q8) Do you have full knowledge about Bikes before buying? Yes Q9) Which factor below influence your decision? Price Resale Value Mileage Status Symbol Quality No

Q10) In new bike with good feature comes in, then would you like to change your bikes? Yes No Cant say

(Signature)