Analysis of preference of two wheelers amongst students towards geared and gearless bikes

Research report submitted in partial fulfilment for the degree of MASTERS IN BUSINESS ADMINISTARTION
by Akansha Kaushal B 02 Akansha Yadav B 03 Ambalika Bharadwaj B 05 Amandeep Sahmey B 04 Dr. Amit Sharma B 07 Anirudhya Samanta B 09 Batch 2011-2013

Symbiosis Institute of Management Studies Symbiosis International University (SIU), Pune September 2011

ACKNOWLEDGEMENTS

We have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. We would like to extend our sincere thanks to all of them. We are highly indebted to Dr. Asha Nagendra for her guidance and constant supervision as well as for providing necessary information regarding the project & also for her support in completing the project. We would like to express our gratitude and thanks towards the faculty of Symbiosis Institute of Management Studies for their kind co-operation and encouragement which helped us in completion of this project. We would like to express our special gratitude and thanks to our valuable respondents for giving us such attention and time. Our thanks and appreciation also goes to our colleagues in developing the project and people who have willingly helped us out with their abilities.

TABLE OF CONTENTS

S. No.
1 2 3 4 5 6 7 8 9 Abstract Introduction Review of literature Research Methodology Results Summary Conclusion Bibliography Appendix

Chapter

Pg. No.
1 3 4 6 17 18 20 21

LIST OF TABLES

S. No.
1 2

Tables
Table 1: Demographics of respondents.

Pg. No.
6 7

Table 2: Type of two wheelers owned by respondents. 3 Table 3: Average distance covered per month. 4 Table4: Price slot of two wheelers owned. 5 Table 5: Engine capacity of bikes owned. 6 Table 6: Last bike used by respondent. 7 Table 7: Ranking given to different features by bike Owners. 8 Table 8: Source of information collected by two wheeler Owners. Table 9: Respondents faith in the brand of two wheelers he / she are using. Table 10: Respondents experience with their bikes. 11 Table 11: Owners purpose to own a bike. 12 Table12: Preferences for buying a new to wheeler in near future. 13 Table 13: Most preferred bike liked by two wheeler owners.
16 15 15 13 12 11 10 9 8

9 10

13 14

LIST OF FIGURES

S. No.
1 2 3 4 5 6 7 8

Figures
Figure 1: Demographics of respondents Figure 2: Type of two wheelers owned by respondents Figure 3: Average distance covered per month Figure 4: Price slot of two wheelers owned Figure 5: Engine capacity of bikes owned Figure 6: Last bike used by respondent Figure 7: Ranking given to different features by bike owners Figure 8: Respondents experience with their bikes

Pg. No.
6 7 8 9 10 11 12 14

ABSTRACT

Profile Change in Indian Two-Wheeler Industry

The demand shift from scooters to motorcycles in the 1990s was without parallel in any comparable product category in India. This was mainly attributed to the change in customers' preference towards fuel-efficient and aesthetically appealing models, which scooter manufacturers failed to provide. The delayed launch of new, advanced scooter models, fear of four-stroke scooters being prone to increased skidding risks and vibrations, and the difficulty of maintenance also contributed to this shift. Interestingly, the growth in the motorcycle segment was mainly driven by the demand from rural and semi-urban consumers. An estimated 60% of the demand for motorcycles came from rural and semi-urban customers. The rise in their disposable incomes on account of good monsoons in the 1990s provided the normally conservative rural and semi-urban customers with extra money that induced them to experiment with new, innovative products. Due to the ongoing rise in fuel prices there has been a major shift in the automotive segment. People now desire more fuel efficient vehicles rather than the old gas guzzlers. India has seen a rapid growth in the two wheeler segment, the major reasons behind this being, maneuverability of two wheelers in the ever growing traffic, greater mileage, lower prices and lower maintenance costs. There are also a number of financial firms ready to give loans for the purchase of two wheelers. The research is focused on the current scenario of the two wheeler industry and the preference of different types of bikes amongst the youth. A survey was conducted in which the target group was college students. It was seen that the girls preferred the gearless Hondas whereas the boys wanted meaner machines. The segment demanded more for the powerful and sports bikes even with a compromised mileage. Even though there has been a surge in price of fuel the two wheeler industry has shown a healthy growth with Hero Honda still being the market leader.

Keywords: Preference, two wheelers, students.

CHAPTER 1: INTRODUCTION
The Indian automotive industry consists of five segments: commercial vehicles; multi-utility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 7,822,963 units sold in the domestic market and 753,591 units exported during the first nine months of FY2009, the industry (excluding tractors) marked a growth of 43% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties. India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country. Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies leads to the arrival of new models of two-wheelers in to India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to a strong growth of Indian automobile industry.

Evolution of Two-wheeler Industry in India:

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. In India there are some MNCs and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile brand

Key Earnings Drivers

Below are the key factors, which strongly affect the auto industry: Government policy impact on petrol prices: Petrol prices determine the running cost of two/three wheelers expressed in Rupees per kilometer. Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But with the recent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant at the current prices. This will have a positive effect on purchases of two/three wheelers.

Improvement in disposable income: With the increase in salary levels, due to entry of multinationals following liberalization process and fifth pay commission, the disposable income has improved exponentially over the years. This will have multiplier effect on demand for consumer durables including two-wheelers. Changes in prices of second-hand cars: The second hand car prices of small cars have come down sharply in the recent past. This will shift the demand from higher-end two-wheelers to cars and affect the demand for two-wheelers negatively. A further drop in second-hand car prices will lead to pressure on the two-wheeler majors who plan to release higher-end scooters and motorcycles Implementation of mass transport system: Many states have planned to implement mass transport systems in state capitals in the future. This will have negative impact on demand for two-wheelers in the long run. But taking into account the delays involved in implementation of such large infrastructure projects the demand to be affected only five to seven years down the line. Availability of credit for vehicle purchase: The availability and cost of finance affects the demand for two- and three-wheelers as the trend for increased credit purchases for consumer durables have increased over the years. Therefore, any change with respect to any of these two parameters as a result of change in RBI policy has to be closely watched to assess the demand for two- and three-wheelers.

AIMS AND OBJECTIVES

The main objective of the survey was to determine the preferences of two wheelers amongst the college going students in India. The preference of geared or gearless vehicles amongst the students. Which would provide valuable information to the two wheeler manufacturing companies so as to target the untapped youth population to its full potential. The specific objectives were: To study and compare the top three companies HERO HONDA, BAJAJ, & HMSI To compare and analyze the product strategies of these three companies. To find out the reasons for change in growth of two wheeler industry.

CHAPTER 2: REVIEW OF LITRETURE

"Until recently many researchers have shown interest in the field of two wheeler industry. They have carried out numerous surveys and field observations to illuminate the darkness of this field. Their findings and suggestions are reviewed here. PRASANTH ALOYSIUS (2008), PROFESSOR, MARKETING DEPT.CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT developed a model investigation conducted on the leading two wheeler industry in the Indian market. After a result of a survey on the leader amongst the top three brands i.e. Bajaj, Hero Honda and Yamaha he came to a conclusion that most youngsters prefer style and performance bikes over the economy segment. It was proved that the Indian two wheeler market is on the major rise. INDIABIKE.COM (2007) studied that in spite of the rise in oil price and interest rates, demand drivers are present for the foreseeable future and are favorable for the two wheeler industry. However, to capture this growth, any player will have to correctly position itself to appeal to the consumer. It also stated that the companies should be able to set a balance between power and a better mileage with lesser servicing of the vehicle required.

BIKE MAGAZINE, October 01, 2009 stated that Two-Wheelers Dealer Survey Over the past few months two-wheeler volumes have been on a steady rise, primarily driven by strong growth in rural volumes. However, off late there have been indications of a recovery in urban volumes. To understand the ground realities, they conducted a dealer survey for two wheeler manufacturers with focus on tier-I and tier-II cities. Their coverage encompassed 30 dealers from cities of Mumbai, Delhi, Chennai, Hyderabad, Nashik, Bangalore, Ahmedabad, Jaipur, Nagpur, Indore, Coimbatore, Amritsar and Vadodara. Hero Honda dealers accounted for 47% of the dealers surveyed, while 37% were Bajaj Auto dealers and remaining 17% were from a mix of TVS Motors and multi-brand dealers. Most of the dealers felt that the current festive season would be better than previous year and the current growth trend is likely to peak out following the festive season. Breakup of dealers surveyed Expectations about future demand growth ALL, 2 Unsure Yamaha, 1 13% Negative TVS, 2 Hero Honda, 10% 14 Bajaj, 11 Positive 77% Source: India Infoline Research Key reasons for the current recovery 50 % 45 Percentage of dealers 40 35 30 25 20 15 10 5 0 Rural Demand market share Festival recovery ( Job Stability, Credit No recovery season prefer bikes Dealers effort Govt. efforts Traffic New launches Fuel efficiency for customer generation Gain in the satisfaction Economic Young of the Source: India Infoline Research Festive season a key driver for growth About 57% of the respondents believe that the current festival season has been the driving force for the recent recovery in urban volumes. Number of bookings surged following the end of inauspicious period of Shradpaksha. Going ahead too, many dealers feel that robust volumes in the current season would be the key to a robust performance for the current year. In fact, 77% of the dealers feel that current festive season would be significantly better than previous. However, 23% were still apprehensive about a relatively better current festive season.

CHAPTER 3: RESEARCH METHODOLOGY

STATEMENT OF PROBLEM: One of the major problems is the negative growth being
faced by companies in the two wheeler industry. The two wheeler industry has been shrinking continuously. From a peak of over 40% growth in 2002 it is currently facing a growth of -12% in the second quarter of 2010. Exhibit shows the recent trends.

HYPOTHESIS Hypothesis, 1: The majority segment consists of economical bikes. Hypothesis, 2: Bajaj is the leader in the two wheeler market in India. SAMPLING TECHNIQUE: Non-probability sampling technique Convenience Sampling
was used for collecting data from the consumers for the survey.

SAMPLE UNIT: Sample units are nothing but the respondents covered during the process of
collecting data for the purpose of research. The sampling units consisted of people who own a two wheeler.

SAMPLE SIZE: The sample size is the total number count of the number of total
respondents covered for the research purpose. Total sample size =51 Male 33 Female-18

STATISTICAL DESIGN: The data was collected and complied in Google docs and is
analyzed using graphs, tables and pie charts.

PRIMARY DATA: Primary data was collected through the administration of questionnaires
to the sample units and conducting a pilot study to ascertain the worth of the questionnaire. Questionnaire Design Questionnaire Administration Scoring Procedure Pilot study

SECONDARY DATA: Secondary data would be collected from internet, industry journals
and magazines. This information and the previous research papers will help in designing the questionnaires and various attributes on which the companies are to be assessed. The company dealers also provided valuable information.

LIMITATIONS OF STUDY: Owing to the huge population size (sampling universe)

spanning throughout the country, it becomes almost impossible to cover all the places in the given scope of study. The results thus obtained are just an overview of the areas and companies covered. The data gathered and the results interpreted are what was done in a time frame of 6months and hence may not reveal the depth of the situation. For the ease of analysis, percentage of respondents using the products was considered as the market share of the particular product in that category. This dissertation is confined on the basis of more secondary data collected only hence it is not very much a reliable data for the study.

CHAPTER 4: RESULTS

Table 1: Demographics of respondents

Sr. General information No Age (in years) 1 19-21 2 22-24 3 25-27 4 28-30

Number

Percentage

1 46 3 1

1.96 90.19 5.89 1.96

Age of respondents

5.89

1.96 1.96 19-21 22-24 90.19 25-27 28-30

Fig 1: Age of respondents Analysis: Referring to Table 1 and the fig 1 majority of respondents were from the age group 22-24 years. Two wheelers are more popular amongst the youth, moreover the target sample being from the college going students majority of them fall into their early twenties.

Table 2: Type of two wheelers owned by respondents

Sr. Two wheeler owned No 1 Geared bike 2 Gearless bike

Number 33 18

Percentage 64.70 35.29

35.29 Geared bike 64.7 Gearless bike

Fig 2: Type of two wheelers owned by respondents

Analysis: Referring to Table2 and the Fig: 2 it can be seen that 64.7% of the respondents owned geared bikes as compared to 35.29% who owned gearless bikes. The gearless bikes are more of a hit amongst the college girls and the geared motorbikes amongst the boys. The gearless ones are more known for their ease of riding and low maintenance whereas the geared bikes for their top speed, power, and sportiness.

Table 3: Average distance covered per month

Sr. Average distance No covered per month (in km) 1 0-100 2 100-200 3 200-300 4 Above 300

Number

Percentage

9 14 12 16

17.64 27.45 23.52 31.37

Above 300

200-300 No of Respondents 100-200

0-100

10

15

20

Fig 3 Average distance covered per month

Analysis: Referring to table 3 and fig: 3 Majority of the respondents cover more than 300 km per month (31.37%) while 27.45% of the respondents cover anywhere between 100-200 km per month on an average. Since major segment of respondents fell in the 22-25 years age category, they had more incline towards touring and pleasure riding.

Table4: Price slot of two wheelers owned

Sr. Price of two-wheeler No owned by the respondents (in Rupees thousands) 1 30-40 2 40-50 3 50-60 4 60-70 5 70 and above

Number

percentage

8 13 12 8 10

15.69 25.49 23.53 15.69 19.60

14 12 10 8 6 4 2 0 30-40 40-50 50-60 60-70 70 and above

Fig 4: Price slots of two wheelers owned by respondents Analysis: Referring to Table 4 and Fig: 4 we have 13 out of 51 people surveyed own two wheelers ranging between Rs.40, 000-50,000 which is the majority. 12 of the respondents own two wheelers ranging between Rs.50, 000-60,000 while 10 of the respondents own two wheelers which cost above Rs.70, 000.

Table 5: Engine capacity of bikes owned

Sr. No 1 2 3 4 5

Capacity of Two wheeler (cc) 100- 125 126- 150 151- 180 181-220 221 or above

Number 19 11 10 6 5

Percentage 37.25 21.57 19.60 11.76 9.80

Fig: 5 Capacity of the engine (in cc)

100- 125 126- 150 151- 180 181-220 221 or above

Fig 5: Engine capacity of the bikes owned

Analysis: Referring to Table 5 and Fig 5we have majority of the two wheelers owned range between 100125cc with regard to the engine capacity. A fair number of the respondents own two wheelers with an engine capacity ranging between 126-150cc and 151-180cc. 5 out of 51 of the respondents own two wheelers with engine capacity above 221cc. The majority still lying in the 100-125cc category the trend in India is still in the economy and mileage sector but is also on the way to the premium segment as it is evident that around 10% of respondents falling in the category of 221cc and above category. INDIABIKE.COM (2007) report being in accordance with the above results of major sector being the economy sector also stated that the companies should be able to set a balance between power and a better mileage with lesser servicing of the vehicle required.

Table 6: Last bike used by respondent

Sr. No 1 2 3 4 5 6 7

Make of last bike used Hero Honda Bajaj TVS Honda Kawasaki Yamaha Others

Number 4 21 4 11 0 6 6

Percentage 7.8 41.17 7.8 21.56 0 11.76 11.76

25

20

15

10

0 Hero Honda Bajaj TVS Honda Kawasaki Yamaha

Fig 6: Make of last bike used by respondents

Analysis: According to the table 6 and fig: 6 majority of respondents last used Bajaj with Honda coming second in this regard. According to the report by PRASANTH ALOYSIUS (2008), PROFESSOR MARKETING DEPT.CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT, Hero Honda was the market leader but as it can be seen from the above table that Bajaj has taken it over from Hero Honda and is more popular amongst the college students. The main reasons for Bajaj topping the charts are probably cause of its continuous launch of newer models and variants in the market compared to Hero Honda which is a little lazy in its research and development sector. Hence the results are contradicting the findings of the previous study

Table 7: Rankings given to the different makes of the bike in various spheres
Rank 1 Poor 2 Average 3 Good 4 Excellent Fuel consumption 3 10 27 11 Engine capacity 0 10 25 16 Mileage 5 15 23 8 Servicing intervals 0 12 29 10

35 30 25 20 15 10 5 0 Poor Average Good Excellent

Fig 7: Rankings given to the different makes of the bike in various spheres

Analysis: Referring to Table 7 and Fig.7 we have majority of the respondents being fairly satisfied with the fuel consumption, engine capacity, mileage and service intervals of their respective two wheelers. There had not been a single respondent having a complaint about the service intervals of the bikes, moreover none was dissatisfied with the engine capacity and power of the bike owned by them. The modern day bikes giving the riders a balance of power and mileage and that too in a smaller cylinder capacity have brought smiles on the riders faces in the times of soaring oil prices.

Table 8: Source of information collected by two wheeler owners

Sr. No 1 2 3 4

Source of information Newspaper TV/ Radio Family or friends Other

Number 6 13 28 4

Percentage 11.76 25.5 54.9 7.8

Analysis: According to the table 8 majority of respondents collected information from family or friends by word of mouth before purchasing their two wheelers (54.9%). 25.5% of the respondents used advertisements from TV/radio as a source of information while others referred to the newspaper (11.76%) and the internet to gather information. Word of mouth still being the major driving factor in the publicity of a particular make of two wheelers probably because the riders share their past experiences of their rides.

Table 9: Whether the respondent has faith in the brand of two wheeler he / she is using

Sr. Brand of two No wheeler used 1 2 3 4 5 6 7 Hero Honda Bajaj TVS Honda Kawasaki Yamaha Others

Yes 4 21 4 10 0 6 5

percentage No 100 100 100 90.9 0 100 90.9 0 0 0 1 0 0 1

Percentage 0 0 0 9.1 0 0 9.1

Analysis: According to the table 9 most of the respondents have faith in the brand of two wheelers they are using. Hero Honda, Bajaj and Yamaha scoring a cent percent in the area of customer satisfaction whereas Honda has still some work left to do in this field as 9.1 customers of Honda being dissatisfied by their after sales services.

Table 10: Respondents experience with their bikes

Experience with the bike 1 Worse 2 Poor 3 Average 4 Satisfied 5 Very Satisfied Number 0 1 6 25 19 Percentage 0 1.9 11.76 49 37.25

1 Worse 2 Poor 3 Average 4 Satisfied 5 Very Satisfied

Fig: Respondents experience with their bikes

Analysis: Referring to Table 10 and Fig 7 we have 49% of the respondents being satisfied with the performance of their two wheelers and their experience with their respective two wheelers. 37.25% are very satisfied whereas 11.76% have had a moderate experience with their two wheelers.

Table 11: Owners purpose to have own a bike

Sr. No 1 2 3 4 5 Purpose to own a bike Status Symbol Utility Touring Style Motor sports Number 5 25 14 4 3 Percentage 9.8 49 27.45 7.8 5.9

Analysis: Majority of the respondents use their two wheelers for utility purposes (49%) while 27.45% use it for touring. Being students the main purpose of owning a bike is for styling, pleasure rides and even daily based commuting from home to college in case of days scholars.

Table12: Preferences for buying a new to wheeler in near future

Sr. No 1 2 3 4 5 Kind of two-wheeler preferred Geared Gearless Electric Dont want to buy one Cant say Number 20 4 7 11 9 Percentage 39.21 7.84 13.72 21.57 17.65

Analysis: Majority of respondents prefer buying geared two wheelers in the future (39.21%) while 21.57% dont want to buy one. There is an increasing demand for electric bikes keeping the environment in mind (13.72%). 7.84% would like to purchase gearless scooters.

Table 13: Most preferred bike liked by two wheeler owners

Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 Preferred two-wheeler Honda Royal Enfield Bajaj Pulsar Yamaha Fazer Kawasaki Ninja Harley Davidson Hero Honda TVS Ducati Yo bike Scooty pep Suzuki Hayabusa

Analysis: Referring to Table 13 we have Honda bikes as the most preferred ones cause of greater rider comfort, low maintenance, and a pleasurable ride feel. Hondas are also a favourite amongst the girls as this company offers the maximum range of gearless two wheelers as compared to the others. Moreover Hondas are known for their product quality and longer service intervals with lower maintenance costs. Royal Enfield being a dream of most of the bachelors mainly because of its muscular classy looks and the road presence one has when on an Enfield.

CHAPTER 5: SUMMARY
To summarize it can be said that majority of respondents are from the age group 22-24, 64.7% of whom own geared bikes as compared to 35.29% who own gearless bikes. Two wheelers are more popular amongst the youth, moreover the target sample being from the college going students majority of them fall into their early twenties. 64.7% of the respondents owned geared bikes as compared to 35.29% who owned gearless bikes. The gearless bikes are more of a hit amongst the college girls and the geared motorbikes amongst the boys. The gearless ones are more known for their ease of riding and low maintenance whereas the geared bikes for their top speed, power, and sportiness. Majority of the respondents cover more than 300 km per month (31.37%) while 27.45% of the respondents cover anywhere between 100-200 km per month on an average. Since major segment of respondents fell in the 22-25 years age category, they had more incline towards touring and pleasure riding. 13 out of 51 people surveyed own two wheelers ranging between Rs.40, 000-50,000 which is the majority. 12 of the respondents own two wheelers ranging between Rs.50, 000-60,000 while 10 of the respondents own two wheelers which cost above Rs.70, 000.

Majority of the two wheelers owned range between 100-125cc with regard to the engine capacity. The majority still lying in the 100-125cc category the trend in India is still in the economy and mileage sector but is also on the way to the premium segment as it is evident that around 10% of respondents falling in the category of 221cc and above category. A fair number of the respondents own two wheelers with an engine capacity ranging between 126-150cc and 151-180cc. 5 out of 51 of the respondents own two wheelers with engine capacity above 221cc. Majority of respondents last used Bajaj with Honda coming second in this regard. The main reasons for Bajaj topping the charts are probably cause of its continuous launch of newer models and variants in the market compared to Hero Honda which is a little lazy in its research and development sector. They were fairly satisfied with the fuel consumption, engine capacity, and mileage and service intervals of their respective two wheelers. Majority of respondents collected information from family or friends by word of mouth before purchasing their two wheelers (54.9%). 25.5% of the respondents used advertisements from TV/radio as a source of information while others referred to the newspaper (11.76%) and the internet to gather information. Majority of respondents prefer buying geared two wheelers in the future (39.21%) while 21.57% dont want to buy one. There is an increasing demand for electric bikes keeping the environment in mind (13.72%). 7.84% would like to purchase gearless scooters. In the end we have Honda bikes as the most preferred ones cause of greater rider comfort, low maintenance, and a pleasurable ride feel.

CHAPTER 6: CONCLUSION

The two wheeler companies should focus on gearless scooters. The market share of gearless scooters is increasing at a healthy rate. Bajaj is virtually absent in this range that caters to the needs of women and families. Presently Honda, Hero Honda and Bajaj are big players in this segment. Yamaha is also catching up with the leading Indian two wheelers companies but is totally absent in the gearless scooter segment thereby being less popular amongst girls. According to the table 6, Pg. No. 11 the results of Bajaj topping the charts in market leadership is not in accordance with the report by PRASANTH ALOYSIUS (2008), PROFESSOR MARKETING DEPT.CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT. INDIABIKE.COM (2007) stated that the major sector of the Indian two wheeler market falls in the economy segment it also stated that the companies should be able to set a balance between power and a better mileage with lesser servicing of the vehicle required, the study is in accordance with this report as seen from table 5, Pg. No. 10. In Indian markets for majority of the two wheeler product categories, foreign companies have streamlined their operations and distribution channels in a much more effective way ensuring higher availability of their goods in the market in pan-India.

HYPOTHESIS TESTING
Hypothesis 1: The majority segment consists of economical bikes. Hypothesis 2: Bajaj is the leader in the two wheeler market in India. PARAMETERS TO TEST HYPOTHESIS Since the hypothesis is stated in absolute subjective terms, there was a requirement to convert this subjectivity into objectivity to arrive at a stage for testing the hypothesis. For performing this task the companies were tried on the grounds of: Availability of product Number of customer complaints Dealers satisfaction level Areas of operation and design of distribution channels Hold on the market share hence the companies were tested on these basis and hence the results were compiled according to the respective product categories itself.

RESULT OF HYPOTHESIS TESTING The overall research and analysis of the two wheeler companies across these 7 categories led to the following result: Hero Honda has lost its position of being the leader to the new players. Bajaj is the leader in the two wheeler market in India. The majority of the riders fall in the economy segment of two wheelers.

CHAPTER 7: BIBLIOGRAPHY

1) "Hero MotoCorp Board of Directors". Hero MotoCorp. Retrieved 2011-08-10. 2) "Stand alone Result". Bombay Stock Exchange. Retrieved 2011-08-10. 3) Key Milestones of Hero MotoCorp, Hero MotoCorp, August, 2011. 4) "Two-wheeler makers ride high in May". Business Standard, July 2010. 5) Forbes, "World's most reputed companies". Retrieved 2007-07-08.

APPENDIX QUESTIONNARE TO ELICIT INFORMATION ON THE PREFENCE OF TWO WHEELERS OWNED TOWARDS GEARED AND GEARLESS BIKES.
Dear respondent, We, students of Symbiosis Institute of Management Studies, Pune are conducting a survey on the preference of two wheeler owners towards geared and gearless bikes. Kindly spare 2 minutes of your precious time in order to fill the questionnaire given below. Name: Date of Birth: Sex: Address: Telephone/Mobile: Q1- Which two wheeler you own currently? i) Geared bike ii)Gearless Motor Bike. iii) Gearless Moppets (Honda, Scooty, Bike). Q2- Average Distance Covered in a Month? i) 0-100 km ii ) 100-200 km iii)200-300 km iv) 300-400 km Q3- Which price slot your bike belongs? i) Less than 30000. ii)3 0000 4 0000. iii)40001 50000. iv)50001 60000. v)I dont know Q4- What is engine capacity of your bike? i) Less than 100cc ii) 100cc to 125cc iii) 126cc to 150cc iv)151cc to 180cc v) Above 180cc

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Q5- Which was the last bike used by you? (i) Hero Honda (ii) Bajaj Discover (iii) TVS Apache (iv) Honda Stunner (v) Others

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Q6 - What is the ranking you would give to the following features of the bike? (on a scale of 1=Poor to 4=Excellent) Fuel Consumption Engine Capacity Average Mileage Q7- You have collected information about the particular brand from which source. i) Newspaper ii) T.V. or Radio iii) Family, Friends iv)Others Q8- Do you have faith on the Brand of your current bike? i) Yes ii) No Q9- Experience with your bike:Worse Not Satisfied Good Satisfied Very satisfied Q11- Features you want to prefer in the bike? (1)Tyre (a) Broad (b) Narrow Q12- For what purpose you want to have bike (a)Status Symbol (b)Utility Vehicle (c)Long Journey Vehicle (d)Style.

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Q13- Which kind of two wheeler would you buy in future? (a) Motor bike (b) Scooter (c) Electric bike (e)Cant say (f) I dont want to buy one Q14- Which is the most preferred bike liked by you?

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