ProjectReport

On
ComparativeAnalysis
Of
4StrokeBikes
(Submittedtowardsthefulfillmentof
PostGraduateDiplomaofManagement)

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CONTENTS

A)Titlepage
B)Acknowledgement
C)Certificate

1) INTRODUCTION
2) INDUSTRYOVERVIEW
3) MARKETINGSTRATEGIES
4)LITERATUREREVIEW
5)RESEARCHMETHODOLOGY
6)DATAANALYSISANDINTERPRETATION
7)FINDINGS
8)SUGGESTIONS
9)CONCLUSION
10)REFERENCESANDANNEXURES

ACKNOWLEDGEMENT
WeexpressoursinceregratitudetoourprojectguideMr.KamalK.Guptaforgivingusthe
opportunitytoworkonthisproject.
WearethankfultoGUIDANCENAMEourProjectGuidefortheirguidanceand
encouragementwithoutwhichthesatisfactorycompletionofourprojectwouldnothavebeen
possible.Theyhavebeenaconstantsourceofinspirationtous,showingallthepatienceand
abundantencouragementthroughouttheprojectduration.
Also,wearethankfultothelibrariansandstaffofourinstitute,fortheircontinuedsupportand
invaluableencouragement.
Aboveall,wearethankfultotheAlmightyandtoourparentsfortheirblessings,humble
supportandshowingtheirbeliefinus.

YOURNAME

CERTIFICATE
ThisistocertifythattheprojectstudytitledsubmittedbyYOURNAMEonfulfillmentofthe
requirementfortheawardofPostGraduateDiplomainManagementisarecordoforiginal
workcarriedoutbyhimundermyguidanceandsupervision.Thisworkhasnotbeensubmitted
elsewhereforawardofanydegreeordiploma.

INTRODUCTION

1. INTRODUCTION
HISTORYOFBIKESThroughtheyears
Bob Stark has been involved with Indian motorcycles throughout his entire life. Bob's father
becameanIndiandealerin1918,afterreturningfrommilitaryserviceduring
WorldWarI.Bobstillhasaphotoofhismotherridinginasidecarin1923.SinceBobwasborn
in1934,hisparentswereinvolvedwithIndiancycleslongbeforethat.
Attheageof10Bobstartedstayingaroundhisfathersshop,anddevelopedquiteaninterestin
theIndiancycles.Themechanicconsideredhimapest,butallowedhimtodominoritems,such
aschangingoil&polishingcycles.
By 1946 Bob was riding his own Whizzer motorbike, and in 1947 graduated to a Cushman
scooter.By1950,hehadlearnedquiteabitmoreaboutthecyclesandgothisfirstIndian,a741
Scoutwithskirtedfenders.Heboughtthecyclefor$50.00withouthisfatherspermissionand
had it for 4 months before his father knew it was his. By 1951, Bob purchased the '48 Chief,
which he still rides. In addition, his father deemed the $50.00 741 Scout to be unsafe. So he
tradedanewTriumph650ccevenupforit.ThatwasthebestcycledealinBob'slife.1951also
washighschoolgraduation,andthestartofcollege.Someextramoneywasobtainedduringthe
next3summersbyworkingoncycles.BobsfatherhadsoldtheIndianshopin1952,sothework
was done in the "ex" chicken coop at home. 1955 was the big change, graduation from Case
Institute of Technology, Akron Ohio (Now called Case/Western) with a degree in mechanical
engineering.ThiswasayearofworkingdaysatGoodyearTire&RubberandnightsonIndians.
A short time was spent in the army during 1956 & 1957. The off hours were spent at Herb
Reiber'sIndianshopinWashingtonD.C.The'48Chief(purchasedin1951)waskeptabout2
milesfromFortBelvoir.
Afteranarmydischargeinthefallof1957BobreturnedtoGoodyearTireduringthedayand
workedonIndiansathomeduringtheevenings.By1957hereopenedhisfathersshopparttime,
sellingtheRoyalEnfieldbuiltIndians,servicingthem,andservicingtheolderChiefs&Scouts.
By1958GoodyearTirewasnolongerinthepictureasBobquittospendfulltimeatthecycle
shop.In1959healthreasonsmandatedamovetoFlorida,andmorebuildingofcyclesathome,
whileworkingatMartinMariettaCorporation.1961wasamovetoCalifornia,andthenominal

homeworkshopfornightwork.Later60'smeanttripsbacktoFloridaaspartofthelaunchcrew
onthefirst2moonshotsfromCapeCanaveral.Garywasbornduringthistimeframeandstarted
ridingbetweenShorty&Bobbyage2.In1970,StarkliteCyclewasformedandBobwasback
to full time work on Indians. Again, Starklite took on the Indian dealership, this time for the
Taiwan/Italian built models. This was different, but the main business was restoring the older
Indiansandmanufacturingpartsforthem.BynowGarywasriding.HegothisfirstIndianatage
5,andhissecondoneatage7.Hewasgivena'47Chiefatage5andhefinishedhisrestoration
ofitatage16.
Astheyearshaveprogressed,Indianpartshavebecomeincreasinglyscarcer.Thishasledtothe
need to design and build increasing amounts of Indian parts. In 1989, Gary graduated from
California State University of Long Beach with an Engineering degree in Manufacturing
Engineering. The engineering has helped both Bob and Gary in the production of what we
believetobethebestqualityofIndianpartsavailable.
Thelinenowstandsatover3000items.Shortlyhasdoneherpartbyputtingupwithallofthis
for nearly 30 years, as well as handling most of the work in connection with the Indian
MotorcycleClub.Garyhasstartedhelpingherthelastcoupleoryearswithmuchofthemailing
andtypesetting,ashehasbecomeveryproficientonthecomputer.
Inthefallof1988,StarklitemovedfromFullertontoPerris.TheshopinFullertonwasleftinthe
handsofWilsonPlank,whowasemployedtherefor14years.Heiscurrentlyoperatingitunder
thenameofAmericanIndianSpecialistsandisrunningitverysuccessfullyworkingonIndians.
Asyoucanseefromthisbriefbackground,TheStarkFamilyhasbeeninvolvedinIndiansfrom
1918tothepresentwithvirtuallynointerruptions.Starkliteisafamilyownedbusinessinvolving
Bob,Shorty,andGary,aswellasothers.Garyisthethirdgenerationtobeinvolved.
Themostgratifyingpartofthebusinesshasbeentheamountofnicepeoplewehavemet.We
considerthemfriends,notjustacustomer.

BACKGROUND
When we think of Indian Twowheelers market, we think of stodgy Vespa based models of
scootersandJapanesemodelsofmotorcycles,butnowthesituationiscompletelychangedasthe
industryissizzlinghotwithcontinuouspoachingofscootersbymotorcyclesaswellasregular
launchesofnewmodelsbyallplayers.Earliertheshelflifeofmodelswasintuneof1015years
butnowithascomedowndrasticallyduetointensecompetition.HeroHondaistryingtosaveits
dominanceinmotorcyclesmarketfromrigorousattacksofBajajAutoandTVSwhileBajajAuto
is changing its portfolio by heavy inclusion of motorcycles in it. In this battle LML Group,
KineticGroup,YamahaMotors,HondaMotorsandRoyalEnfieldarealsotryingtohaveasay.

2.

INDUSTRYOVERVIEW
(TWOWHEELERSANDTHREEWHEELERS)

TwoWheelers
India is the second largest manufacturer and producer of twowheelers in the world. It stands
next only to Japan and China in terms of the number of twowheelers produced and domestic
salesrespectively.Thisdistinctionwasachievedduetovarietyofreasonslikerestrictivepolicy
followed by the Government of India towards the passenger car industry, rising demand for
personaltransport,inefficiencyinthepublictransportationsystemetc.

The Indian twowheeler industry made a small beginning in the early 50s when Automobile
Products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfieldwerethesoleproducers.In1948,BajajAutobegantradinginimportedVespascooters
and threewheelers. Finally, in 1960, it set up a shop to manufacture them in technical
collaborationwithPiaggioofItaly.Althoughvariousgovernmentandprivateenterprisesentered
thefrayforscooters,theonlynewplayerthathaslastedtilltodayisLML.Undertheregulated
regime,foreigncompanieswerenotallowedtooperateinIndia.Itwasacompletesellersmarket
withthewaitingperiodforgettingascooterfromBajajAutobeingashighas12years.

Themotorcyclessegmentwasnodifferent,withonlythreemanufacturersvizEnfield,IdealJawa
andEscorts.WhileEnfieldbulletwasafourstrokebike,JawaandtheRajdootweretwostroke
bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts
175cc bike. The twowheeler market was opened to foreign competition in the mid80s.
Moreover,thethenmarketleadersEscortsandEnfieldwerecaughtunawarebytheonslaught
ofthe100ccbikesofthefourIndoJapanesejointventures.Withtheavailabilityoffuelefficient
low power bikes, demand swelled, resulting in Hero Honda then the only producer of four
strokebikes(100cccategory),gainingatopslot.ThefirstJapanesemotorcycleswereintroduced
intheearlyeighties.TVSSuzukiandHeroHondabroughtinthefirsttwostrokeandfourstroke
enginemotorcyclesrespectively.ThesetwoplayersinitiallystartedwithassemblyofCKDkits,

andlateronprogressedtoindigenousmanufacturing.Inthe90sthemajorgrowthformotorcycle
segmentwasbroughtinbyJapanesemotorcycles,whichgrewatarateofnearly25%CAGRin
thelastfiveyears.Theindustryhadasmoothrideinthe50s,60sand70swhentheGovernment
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden
growthinthe80s.Theindustrywitnessedasteadygrowthof14%leadingtoapeakvolumeof
1.9mnvehiclesin1990.TheentryofKineticHondainmideightieswithavariometricscooter
helped in providing ease of use to the scooter owners. This helped in inducing youngsters and
workingwomen,towardsbuyingscooters,whowereearlierinclinedtowardsmopedpurchases.
In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the
scootersegmenthasconsistentlylostitspartofthemarketshareinthetwowheelermarket.
In1990,theentireautomobileindustrysawadrasticfallindemand.Thisresultedinadeclineof
15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero
Honda,allthemajorproducerssufferedfromrecessioninFY93andFY94.HeroHondashowed
amarginaldeclinein1992.Thereasonsforrecessioninthesectorweretheincessantriseinfuel
prices, high input costs and reduced purchasing power due to significant rise in general price
levelandcreditcrunchinconsumerfinancing.Factorslikeincreasedproductionin1992,dueto
new entrants coupled with the recession in the industry resulted in companies either reporting
lossesorafallinprofits

ThreeWheelers
Indiaisoneoftheveryfewcountriesmanufacturingthreewheelersintheworld.Itistheworld's
largest manufacturer and seller of threewheelers. Bajaj Auto commands a monopoly in the
domesticmarketwithamarketshareofabove80%,therestissharedbyBajajTempo,Greaves
LtdandScootersIndia.

3. MAJORPLAYERSANDCOMPETITION

a. HEROHONDALTD.
ThelegendofHeroHondawhatstartedoutasaJointVenturebetweenHeroGroup,theworld's
largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the
World'ssinglelargesttwowheelerCompany.ComingintoexistenceonJanuary19,1984,Hero
HondaMotorsLimitedgaveIndianothinglessthanarevolutionontwowheels,madeevenmore
famous by the 'Fill it Shut it Forget it ' campaign. Driven by the trust of over 5 million
customers,theHeroHondaproductrangetodaycommandsamarketshareof48%makingita
veritable giant in the industry. Add to that technological excellence, an expansive dealer
network, and reliable after sales service, and you have one of the most customer friendly
companies.

b.

BAJAJAUTOLIMITED

The Bajaj Group came into existence during the turmoil and the heady euphoria of India's
freedomstruggle.JamnalalBajaj,founderoftheBajajGroup,wasaconfidanteanddiscipleof
MahatmaGandhi,andwasdeeplyinvolvedintheeffortforfreedom.Theintegrity,dedication,
resourcefulnessanddeterminationtosucceedwhicharecharacteristicoftheCompanytoday,are
oftentracedbacktoitsbirthduringthoselongdaysofrelentlessdevotiontoacommoncause.
Kamalnayan,theeldestsonofJamnalalBajaj,succeededhisfatherin1942,attheageoftwenty
seven. Putting the Nation before business, he devoted himself to the latter only after India
achievedindependencein1947.Butwhenhedidso,heputhisheartandsoulintoit.Withina
shortwhile,henotonlyconsolidatedtheGroup,butalsodiversifiedintovariousmanufacturing
activities,elevatingtheGrouptothestatusitenjoystillthisday.
RahulBajajtodayheadstheGroup.HehasbeentheChiefExecutiveOfficerofBajajsince1968
and is recognized as one of the most outstanding business leaders in India. As dynamic and
ambitiousashisillustriouspredecessors,hehasbeenrecognisedforhisachievementsatvarious
nationalandinternationalforums.
Bajaj is currently India's largest two and threewheeler manufacturer and one of the biggest in
the world. Bajaj has long left behind its annual turnover of Rs.72 million (1968), to currently
registeranimpressivefigureofRs.42.16billion(US$936million).
Group/Management
Mr. Jamanalal Bajaj founded the Bajaj Group in the 30s. The group now has 24 companies,
including6listedcompanies.BesidesBAL,themajorcompaniesinthegroupareMukandLtd.
(Alloy/SpecialSteel,termkeyprojects),BajajElectricalsLtd.(Electricalequipments,fans,and
appliances)andBajajHindustanLtd.(Sugar,industrialalcohol)

BELIEFS
Transparency:Acommitmentthatthebusinessismanagedalongtransparentlines.
Fairness:ToallstakeholdersintheCompany,butespeciallytominorityshareholders.
Disclosure: Of all relevant financial and nonfinancial information in an easilyunderstood
manner.
Supervision: Of the Companys activities by a professionally competent andindependent
boardofdirectors.

PRESENCE
Distributionnetworkcovers50countries.
About150,000unitslikelytobeexportedthisyear.
Dominant presence in Sri Lanka, Mexico, Bangladesh, Columbia, Guatemala, Peru, Egypt,
IranandIndonesia.
Largestexporterofthreewheelersover40.875unitsexportedlastyear.
Allproductscustomizedaspermarketneeds.
83%growthintotalexportsin200203.

DifferentmodelsofBajaj4strokebikes:

BajajCT100
Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

99.27cc

Max.Power

8.2BHP@7500rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

110mmDrum

RearBrakes

110mmDrum

FrontTyre

2.75X18

RearTyre

2.75X18

Wheelbase

1225mm

GroundClearance

0mm

DryWeight

109Kg

TankCapacity

9.3Litres

Colours

Black,Maroon,Silver,Blue

BajajDiscoverElectricstart
Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

124.52cc

Max.Power

11.51BHP@8000rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

130mmDrum

RearBrakes

130mmDrum

FrontTyre

2.75X17

RearTyre

3.00X17

Wheelbase

1305mm

GroundClearance

0mm

DryWeight

129Kg

TankCapacity

10Litres

Colours

Black,Red,Blue

BajajPulsar150ESDTSi

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

178.6cc

Max.Power

16.5BHP@8000rpm

GearBox

5Speed

Ignition

CDI

FrontBrakes

Disc

RearBrakes

130mmDrum

FrontTyre

2.75X17

RearTyre

100/90X17

Wheelbase

1330mm

GroundClearance

165mm

DryWeight

140Kg

TankCapacity

15Litres

Colours

Black,Silver,Orange,Blue,DarkGrey

c.

LMLAUTOLTD.

Thecompanywasincorporatedin1972asaprivatelimitedcompanycalledLohiaMachineLtd.
andstartingmanufacturingmachineintechnicalcollaborationwithARCTFRANCEintermsof
companiesAct1956.Thecompanywasconvertedintopubliclimitedcompany.Theactivities
were diversified by putting up synthetic yarn processing unit in 1978. Nylon 6 chips
manufacturingofLMLscooter.Theactivityofengineeringunitwasphasedoutandfiberunit
was delinked. As such as the company now manufacturing scooters and motorbike under the
brandnameofLML.
During the last 14 years the company has produced and sold over 19 Lacks scooters that is a
remarkable achievement inspire of formidable competition formats competitors when LML
enteredthescooterindustryin1982.Itwasessentiallyoperatinginasellermarketwhichhad
hugeunmeetdemanditwasabletogainsubstantialandmarketshoreapproachedoperandfrom
14000amonthin1990to5000amonthin1992.Overallsalesin1991werehalfthatof1990.It
introduced a new vehicle LML is in early 1992 which was priced higher than LML TS in
September 1992 both the vehicles were restyled and relaunched as the NV special and TS
special there was no immediate impacts on sales. Total sales in 1992 were lower than even
1991.
HowevertherewasconsiderablereshapingwithintheexistingdemandwiththehigherpriceTS
rapidlywrestinga35percentsharesofLML20sales.Byend1992thecompanyhadmanaged
to fix its mingling quality problems which has been preventing it from attaining a premium
states in the eye of the consumer it started spending on advertisement also for provide ding
productrelatedinformationtopotentialcustomers.

Innovative marketing such as exchanging any old scooter for new LML one and paying the
differenceiseasyinstallmenthehelpedinboomingupthemarketshareofLMLconsiderable
LMLenthuseditsdealerwithmeregenerousmorgingwhichrangesfromRs725toRs1100.
By1993,itintroducedanewmodelLMLselectthatprovedaninstantsuccessbymid1993as
mucha60percentofLMLsalestopercentby1993hadincreasedto15000permonth.Itstayed
atthesalesreputedto20000apermonthbytheyearend.
The severe demand recession during October 1990 top September 1992 upset the working of
companyresultingintoheavyloses.AsaresultofhouseResearchandDevelopment.Activities
thecompanycouldintroduceanewrangeofscooterwithlotofaddedfeatureslikeabetterfuel,
efficientengineandattractivemetalliccolorsetcwithearningofrecessionthesalesofcompany
pickedupalevelofabout5000scooterto2000scooterpermonth.Duringtheyearend30997
LMLhasachievedaremarkableturnoverbyearninganetprofitRs2640lacksascomparedto
netlossof607duringtheyearprovedfurtherandthecompanyhasearnedanetprofitofRs467
crores during the period ended on 30997 before exceptional item has also gone up from Rs
346.39croresduring199394toRs748.72croresduring199697.
Fromamere7percent,marketsharein19911992LMLhastodaymadesignificantresultand
commandsanimpressivemarketshareofabout26percent.
LML achieved 14.63% increase in volumes against the backdrop of a slow down in the two
wheelerindustryandanegativegrowthinthescootersegment.

DifferentmodelsofLML4strokesbikes:
LMLFreedomDX
Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

109.15cc

Max.Power

8.5BHP@7550rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

Drum

RearBrakes

Drum

FrontTyre

2.75X18

RearTyre

3.00X18

Wheelbase

1235mm

GroundClearance

165mm

DryWeight

111Kg

TankCapacity

12.25Litres

LMLFreedomPrima125DiscBrakeMotorcycle

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

124.88cc

Max.Power

10.7BHP@8000rpm

GearBox

5Speed

Ignition

CDI

FrontBrakes

Disc

RearBrakes

130mmDrum

FrontTyre

2.75X18

RearTyre

3.00X18

Wheelbase

1235mm

GroundClearance

165mm

DryWeight

111Kg

TankCapacity

12.25Litres

Colours

Black,Silver

LMLGraptorKickStartMotorcycle

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

150.8cc

Max.Power

13.5BHP@8000rpm

GearBox

5Speed

Ignition

CDI

FrontBrakes

Disc

RearBrakes

130mmDrum

FrontTyre

2.75X18

RearTyre

3.00X18

Wheelbase

1280mm

GroundClearance

170mm

DryWeight

136Kg

TankCapacity

17Litres

Colours

Black,Maroon,Silver,Blue

d. TVSMotorCompany

TVSSuzukibecamethefirstIndiancompanytointroduce100ccIndoJapanesemotorcyclesin
collaborationwithSuzukiMotorCompany.HavingamicablypartedwaysTVSMotorCompany
continuestomanufacturehighlyreliablemopeds,motorcycles&scooters.TVShaveoneofthe
most comprehensive lineups of motorcycles. The 2 Stroke Max 100 range provide the entry
level.ThenewTVSCentraandthelatestTVSVictorGLX125bothusethenewVTi(Variable
TimingIgnition)togoodeffect.
TheIndiantwowheelermarkethasasizeofoverRs100,000millionwiththesalesofmorethan
3.7millionunitsin200001andhasbeengrowingat7%CAGRover19972001.TVSSuzuki
Ltd (TSL) is one of the three companies that account for more than 80% of the industry. The
companyhas23%marketshareindomestictwowheelerindustry.TSLispresentinallthethree
leadingsegmentsofthe2wheelermarketvizmopeds,motorcyclesandscooters.Thecompany
is Indias largest manufacturer of mopeds with a market share of 66%, and dominates the
southern parts of India. It is also a market leader in the fast growing varioscooter (Scooty)
marketwithamarketshareof34%.InFY01,motorcyclesalescontributedto53%followedby
salesinmopedsto24%oftotalsalesofRs18,408.2mn.TSLsfirst4strokepremiumsegment
motorcycleSuzukiFierohasachievedabout3%marketsharewithinthefirstyearofitslaunch.
Mostrecentlythe19yroldJVwithSuzukiMotorCorporation(SMC)hasfallenoffandTVS
hasbeenrenamedasTVSMotorCompanyLtd.
The Indian twowheeler sector contributes the largest volumes amongst all the segments in
automobile industry. Though the segment can be broadly categorized into 3 subsegments viz
scooters,motorcyclesandmopedssomecategoriesintroducedinthemarketareacombination
oftwoormoresegmentse.g.scooterettesandstepthrus.Themarketprimarilycomprisesfive
players in the twowheeler segment with most of the companies having foreign collaborations
with wellknown Japanese firms earlier. But with most of the companies now planning 100%
subsidiariesinIndia,afewJVshavefallenout.
In the last four to five years, the twowheeler market has witnessed a marked shift towards
motorcyclesattheexpenseofscooters.Intheruralareas,consumershavecometoprefersturdier
bikestowithstandthebadroadconditions.Intheprocesstheshareofmotorcyclesegmenthas

grown from 48% to 58% , the share of scooters declined drastically from 33% to 25% , while
thatofmopedsdeclinedby2%from19%to17%duringtheyear200001.TheEuroemission
normseffectivefromApril2000ledtotheexistingplayersinthetwostrokesegmenttoinstall
catalytic converters. 4stroke motorcycles are now replacing all new vehicles. Reduced excise
dutyandfiercecompetitionhasledtoafallinpricesofcertainmodels.
TSLhasbeenthelargestmanufacturerofmopeds,whicharepredominantlyprevalentasameans
oflowcosttransportationandprovideatremendouspotentialinallthepartsofIndia.However
thecompanyislikelytofacethreatfromdomesticcompetitorsvizBajajAutoLtd(BAL)which
wouldcontinueitspricebasedcompetitionandHondaMotorcyclesandScootersLtd(HMSL)a
newentrantinthe2wheelermarket.Sincethetwowheelerindustryhasgrownvigorouslyinthe
past,therehasbeenexcesscapacityandcostpressureswillleadtoreducemargins.Theremoval
ofquantitativerestrictionshasalsoledtoathreatfromtheChineseplayers.Inadditiontothis
therehasbeenadeclineinthedemandformopeds,whichismatterofconcernforthecompany.
Consequently,thecompanyhasbeenplanningtolauncharangeof4strokevehiclescoveringall
segments over a period of time. Of late, TVS has been able to produce 100cc 4stroke
motorcycles indigenously and none of the companys fast selling 2wheelers have a major
Suzukicontribution.
CurrentScenario
TVSSuzukismotorcyclevolumegrowthataround1.3%iswaybehindthatofitscompetitors
suchasHeroHonda(37.28%)andBajajAuto(34.5%).ThecompanyforthefirsthalfofFY02
postedadropinturnoverby8%toRs8332.8mn.Operatingprofitmarginhasdeclinedto7.39%
from9.53%andhasbeenaffectedonaccountofdisproportionateincreaseinrawmaterialcostin
relationtotheturnover.IncreaseinstaffcoststoRs364.2mnfromRs312.3mnaccompaniedby
marginalincreaseindepreciationandinterestcostshasaffectedthecompanysbottomline.The
posttax earnings declined by about 53% to Rs191.6mn. However the earnings during second
quarter are relatively better than the first quarter of current fiscal 0102. The pick up in sales
volumesofVictorandthesteadyofftakeofFierohavehelpedthecompanystagesomesort
ofrecoveryduringthesecondquarter.

DifferentmodelsofTVS4strokesbikes:
TVSCentra

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

99.8cc

Max.Power

7.5BHP@7500rpm

GearBox

4Speed,constantmesh

Ignition

CDI

FrontBrakes

110mm

RearBrakes

110mm

FrontTyre

2.75X18

RearTyre

2.75X18

Wheelbase

1235mm

GroundClearance

150mm

DryWeight

109Kg

TankCapacity

11Litres

Colours

Black,Blue,Red

TVSFiero

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

147.5cc

Max.Power

12BHP@7000rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

240mmDisc

RearBrakes

130mmDrum

FrontTyre

2.75X18

RearTyre

90/90X18

Wheelbase

1270mm

GroundClearance

155mm

DryWeight

124Kg

TankCapacity

13Litres

Colours

Black,Blue,Red,Silver

TVSVictor

TheTVSVictoroffersamongstthebestvalueformoneyintheIndiantwowheelerindustry.
Its 110cc engine, 4 stroke engine develops 8.1 BHP and, thanks to its digital ignition, can be
optimisedforpowerorfueleconomydependingonyourridingstyle.
Itsmultireflectorheadlampsprovidebetterilluminationforsaferridingwhileitslongbroadseat
offersgreatcomfortbothforthepillionandtherider.

e.

YAMAHAMOTORINDIAPVT.LTD.
Yamaha
MotorIndiaPrivate(YMIPL)Ltd.isthefullyownedsubsidiaryofYamahaMotorCoofJapan.
YMIPL was initially known as Yamaha Motor Escorts Ltd. But the parent company, Yamaha
MotorCompany,purchasedEscortsLtd'sremaining26percentholdingintheirmotorcyclejoint
venture Yamaha Motor Escorts Ltd in June 2001. It was therefore renamed as Yamaha Motor
IndiaPrivateLtd.
YMI follows Yamaha Motor's corporate mission of creating 'Kando' a unique Japanese word
that means 'touching people's hearts.' 'Kando' also describes the 'spirit of challenge" to create
new value surpassing customer expectations. YMIPL is committed to making products that
benefitfromtheskillsandtechnologyusedbyYamahaworldwide.
Now, the company being 100% subsidiary holder is known as the Yamaha Motor India (Pvt.)
Limited.ThelogoofYMChasbeenadoptedbyYMIPL.
PlansafterMerger
Tofulfillcustomersatisfaction,andmeettheneedsoftheIndianmarket,YMIplanstoproduce
oneormoremodelsinthefirstyear,fourmodelsinthreeyears.Toachievethesegoals,YMIPL
will pursue three major objectives within the company. The first is customer satisfaction. The
second is strengthening R&D. YMIPL's mission is to constantly produce what customers are
looking for, by analysing market trends and changes. The third objective is to optimize the
internalworkingsystem.
YMIPL's motto is 'Speed, Quality, Yamaha's original design'. Yamaha is aiming to make a
significantcontributiontoIndiansocietyandcreateproductsthatthepeopleofIndiawilltaketo
theirhearts.
Eversinceitsfoundingasamotorcyclemanufactureron1stJuly,1955,YamahaMotorCompany
has worked to build its products which stand among the very best in the world through its
constant pursuit of quality and at the same time, through these products, it has sought to
contribute to the quality of life of people all over the world. Following on the success of our
Motorcycles, Yamaha being manufacturing Powerboats and out boards motors in 1960. Since

then,engineandFRPtechnologywereusedasabasetoactivelydiversifyandglobalizethearea
ofbusiness.Todayourfieldsofinfluenceextendfromthelandtotheseaandevenintotheskies
as our business divisions have grown Motorcycles operations to include Marine operations,
PowerProductoperations,Automotiveoperations,IntelligentMachineryoperations,Aeronautic
operationsandPASoperations.

DifferentmodelsofYamaha4strokesbikes:
YamahaCrux
Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

105.6cc

Max.Power

7.6BHP@7500rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

130mmDrum

RearBrakes

130mmDrum

FrontTyre

2.50X18

RearTyre

2.75X18

Wheelbase

1247mm

GroundClearance

145mm

DryWeight

105.5Kg

TankCapacity

11Litres

Colours

Black,Blue&Red

YamahaEnticerElectricStartDiscBrake

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

123.7cc

Max.Power

10.99BHP@8000rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

Disc

RearBrakes

130mmDrum

FrontTyre

2.75X18

RearTyre

120/80X16

Wheelbase

1375mm

GroundClearance

140mm

DryWeight

116Kg

TankCapacity

13Litres

Colours

Lavender,Gold,Red

YamahaLibero

Engine

4Stroke,SingleCylinder,AirCooled

CubicCapacity

106cc

Max.Power

7.6BHP@7500rpm

GearBox

4Speed

Ignition

CDI

FrontBrakes

130mmDrum

RearBrakes

130mmDrum

FrontTyre

2.75X18

RearTyre

3.00X18

Wheelbase

1290mm

GroundClearance

173mm

DryWeight

109Kg

TankCapacity

13Litres

Colours

Black,Maroon,Gold,Green

MARKETING
STRATEGIES
4.

5. MARKETINGSTRATEGIESOFHEROHONDA
a. PRODUCTRELATEDSTRATEGIESOFHEROHONDA

ProductRangeandNewModels:
TheCompany'sproductrangeincludes"Splendor"whichisthelargestsellingmotorcyclebrand
intheworldwithover6.9lacsvehiclessoldin200001.Acumulativeover4millioncustomers
aretherealfoundationofthecompany'sstrength.Thetotalshallsooncrossthe5millionmark.
Itsvolumeshavebeengrowingatastrongpaceof40%p.a.overthelastfiveyears.

The Company launched a new 100 cc model "Passion" in January 2001. The motorcycle is
focusedonstyleandcontemporarydesign,comparedtotheCompany'searliermotorcyclesthat
were focused on utility and/or style. "Passion" has received an excellent response from the
marketandhasestablisheditselfwell,withsalesreachingalevelof19000unitsinMarch2001,
withinjustthreemonthsofitslaunch.
In April 2001, another 100 cc model "Joy" was launched successfully. Its focus is on better
stylingandimprovedridingcomfort.
Hero Honda launches cheapest bike to stall Bajaj Auto19.03 IST16th Apr 2003 By India
ExpressBureau
In an attempt to beat competition from its rival Bajaj Auto, Hero Honda Motors launched its
cheapest 100cc motorbike yet on Wednesday. The motorbike maker, in which India's Munjal
family and Japan's Honda Motor Co each hold 26 per cent stakes, said the new model, CD
Dawn,wouldcarryashowroompriceofRs31,899inDelhi.Thecompanyexpectstosell7,000
8,000unitsofthebikeinAprilandhopessaleswilltouch20,000amonthinsixmonths.Hero
Honda,whichaccountsfor45percentshareofthedomesticmarket,hasfacedslowingdemand
andcutthroatcompetitionaftertwoconsecutiveyearsof30percentplusgrowthintheworld's
biggestmotorcyclemarket.Butthefirmhasforecastatleast10percentgrowthinsalesvolume
inthecurrentfinancialyeartoMarch2004.ItssalesinthepastyeartoMarchgrew17.7percent
to1.68millionbikes.

DifferentmodelsofHeroHonda4strokesbikes:

Presenting CD deluxe, the stylish, true value 100 cc motorcycle from Hero Honda.
Encompassing the legendary Hero Honda values of fuel efficiency, economy and rock solid
dependability.
Engine
BoreXStroke
Displacement
CompressionRatio
MaxPower
Torque
Clutch
Transmission
FinalDrive
Ignition
Starting
Frame
Suspension
Dimensions(LXWXH)
WheelBase
GroundClearance
KerbWeight
Tyres
Brakes
FuelTankCapacity
HeadLight

4StrokeOHC,SingleCylinder,AirCooled
50X49.5mm
97.2cc
8.8:1
5.44Kw(7.4PS)@8000rpm
0.79Kgm@5000rpm
MultiPlateWetType
4SpeedConstantMesh
RollerChain
CapacitorDischargeIgnition
KickStart
TubularDoubleCradle
Front:TelescopicHydraulicFork
Rear:SwingArmwithHydraulicShockAbsorbers
1970X720X1045mm
1230mm
159mm
108Kg
Front:2.75X184PR
Rear:2.75X186PR
Front:InternalExpandingShoeType130mmDia
Rear:InternalExpandingShoeType110mmDia
10.5Ltrs
RectangularMultiFocalReflector35

Theworld'sbestsellingmotorcyclejustgotbetter.TheSplendor+,abikethatwillstopyouright
inyourtracks.Bothbyitslooksandperformance.Needlesstoadd,owningaSplendor+meansa
lot of other things too. Like getting admiring looks. Or the pride of riding a motorcycle that
meetsthepollutioncontrolstandardsofthisdecade.That'stheSplendor+.Thenewfaceoftrust.
Engine

4stroke,singlecylinderlaircooled,OHC

Displacement
Transmission
Ignition
Headlight

97.2.cc
4speedconstantmesh
Electronic
12V35/35Wmultireflectorwithhalogenlamp

Frame
Suspension(front)
Suspension(rear)
Wheelbase
Groundclearance
Kerbweight
Tyre(front)
Tyre(rear)
Typeofbrake(front)
Optional
Typeofbrake(rear)
Maxpower

Tubulardoublecradletype
Telescopichydraulicfork
Hydraulicspringloadedtypewithbothside
action
1230mm
159mm
109kgs
2.75*184PR
2.75*186PR
Drumtype(130mmdiameter)
Disctype(240mmdiameter)
Drumtype(110mmdiameter)
7.5PS@8000rpm/5.5KW@8000rpm

Maxspeed
Fueltankcapacity

85kmph
10.5litres(reserve1.4litres)

Engine

4StrokeOHC,SingleCylinder,AirCooled

BoreXStroke

52.4X57.8mm

Displacement

124.7cc

CompressionRatio

9.1:1

MaxPower

6.72Kw(9BHP)@7000rpm

Torque

10.35Nm@4000rpm

MaxSpeed

90Kmph

Clutch

4SpeedConstantMesh

FinalDrive

RollerChain

Ignition

DigitalCDIIgnition(AMI)
AdvancedMicroProcessorIgnitionsystem

Starting

KickStart
SelfStart(Optional)

Frame

TubularDoubleCradle

Suspension

Front:TelescopicHydraulicFork
Rear:SwingArmwithHydraulicShockAbsorbers

Dimensions(LXWXH)

1995X735X1095mm

WheelBase

1265mm

GroundClearance

150mm

KerbWeight

117Kg(KickVersion)
121Kg(SelfVersion)

Tyres

Front:2.75X184PR/42P
Rear:2.75X186PR/48P

Brakes

FrontDrumType:InternalExpandingType130mmDia
FrontDiscType:HydraulicDiscType215mmDia
(Optional
Rear:InternalExpandingType130mmDia

FuelTankCapacity

12Ltrs.(Min)

HeadLight

12V35WMultiReflectorHalogenBulbACType

NewtwotonebodycoloursPLUSBodycolourrearviewmirrorsPLUSAluminumdiecastrear
gripPLUSHeatprotectoronthemuffler.Allthisandmuchmoretomakethebikerandhisbike
staymarriedforeve.
Engine
Displacement
MaximumPower
GearBox
Clutch
Max.Speed
Frame
Suspension(Front)
Suspension(Rear)
TyreSize(Front)
TyreSize(Rear)
Brakes(Front)

4stroke,SingleCylinder,AirCooledOHC
97.2cc
7.5Psat8000rpm
4SpeedConstantMesh
MultiPlateWetType
85Kmph.
TubularDoubleCradle
TelescopicHydraulicFork
SwingArmwith5stepadjustablehydraulicdamper.
2.75*184PR/42P
3.00*184/6PR
InternalExpandingShoesType
(130mm)/HydraulicDiscType(Optional)
Brakes(Rear)
InternalExpandingShoesType(130mm)
FinalDrive
RollerChain
Battery
12V2.5Ah
Ignition
ElectronicCDI
Starting
KickStarter
Wheelbase
1235mm
GroundClearance 160mm
Length
1980mm
Width
720mm
Height
1060mm
KerbWeight
116kgs.
FuelTankCapacity12.8litres(Reserve1.1litres)

Headlight

HalogenBulb35W/35W

Karizima
TheKarizimafeaturesa223cc,17PSpowerpackthatacceleratesyoufrom060in3.8seconds.
DistinctivestylingandMagalloywheelsmakethisbikestandoutbeforeitracesawayfromthe
pack.
Digitalignitionandaconstantvacuumcarburetorfacilitatebettercontrolofignitiontiming.

Thelegendrefreshedwithallnewbodylanguage.TheoriginalspiritofCBZ,nowwithacool,
newlook.Awonderbikethatcantakeonthewinds.Andlikeyou,itrunsonpassion.Revup
andflauntyourstyle.

CBZ
Engine
Displacement
ClutchType
ClutchPrimary
ClutchSecondary
Transmission
FinalDrive
Ignition
Starting
Frame
Suspension(Front)
Suspension(Rear)
Dimensions(L*W*H)
WheelBase
GroundClearance
KerbWeight
Tyres:Front/Rear

4stroke,singlecylinder,aircooled,OHC
156.8cc
Manual

Multiplatewet
5speedconstantmesh
Rollerchain
Electronic
Kickstarter
Tubularsinglecradle
Telescopichydraulicfork
Swingarmwithhydraulicdamper5stepadjustment
2100*755*1130mm
1335mm
160mm
138kg
2.75*1842P/100/90*1856P

Max.Power
Max.Speed
FuelTankCapacity

12.8PS@8000rpm
100kmph
12.51tr(2.5ltrreserve)

b. PLACESTRATEGYOFHEROHONDA
TodayHeroHondahasmanagedtoachieveindigenizationofover95percent,aHondarecord
worldwide. Hero Honda is at present the largestselling Indian motorcycle and the most fuel
efficientinitscategorytheoutcomeofHeroGroup'sforesightandanotherclassicexampleof
howtheGroupstrivestoprovidethecustomerwithexcellenceandsatisfaction.
HeroHondabecamethefirstcompanyinthecountrytointroducefourstrokemotorcyclesand
setthestandardsforfuelefficiency,pollutioncontrolandquality.Ithasaproductioncapacityof
1.2millionmotorcycles,whichshallbeenhancedto1.5millionmotorcyclesinthecomingyears.
Ithasanexcellentdistributionandservicenetworkspreadthroughoutthecountry.HeroHonda
isthemarketleaderinmotorcycles,withsalesofoveramillionmotorcyclesandastrongmarket
shareof47%during200001.
Thisisprovedbythecompany'ssalesovertheyears:
YEAR

SALES

200203

43,000units

200304

96,200units

200405

5,30,600units

200506

7,61,210units

200607

10,29,555units

200708

14,25,195units

200809

16,77,537units

200910

18,23,234units

Aseconomiesopenup,areAsianenterprisesreadyfortheglobalbattleforexportmarketsand
investment?
HeroHondasalesdecline1.2pc
OurBureau
NEWDELHI,May1
HERO Honda, the country's largest motorcycle manufacturer, saw its sales decline by 1.2 per
centto1,34,318unitsinApril2003from1,35,961unitsinthesamemonthlastyear.
Accordingtoindustrysources,salesofthecompanycouldhavebeenaffectedbysluggishrural
demandcombinedwiththe10daytrucker'sstrikeaffectingproductionaswellasdistributionof
productsinApril.
Thecompanysawagrowthof16.06percentinsalesvolumeduringAprilcomparedtoMarch.
Meanwhile, Hero Honda is planning to launch new 200 plus cc motorcycle during May, a
companyreleasesaid.
The company today announced that it has achieved a milestone with its Daruhera plant, in
Haryana,becomingthefirstIndiantwowheelerplanttoproduce5millionunits.The5millionth
motorcycle was a Splendor. The first motorcycle, CD100, had rolled off the assembly line in
April1985.
Customer satisfaction, a high quality product, the strength of Honda technology and the Hero
group'sdynamismhavehelpedHHMLscalenewfrontiersandexceedlimits.
In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will
continuetomakeeveryeffortrequiredforthedevelopmentofthemotorcycleindustry,through
newproductdevelopment,technologicalinnovation,investmentinequipmentandfacilitiesand
throughandthroughefficientmanagement."

c. PRICINGSTRATEGYOFHEROHONDA
Arichbackgroundofmanufacturinghighvalue,reasonablypricedproductsanuncompromising
pursuit of the goals to attain quality along with customer satisfaction the resulting affinity in
workingculturesbroughttheworld'slargestmanufacturerofmotorcyclesincollaborationwith
theworld'slargestbicyclemanufacturer,bringingforthamarketleader.HondaMotorCompany
of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors Limited in
1984.
TheKarizimafeaturesa223cc,17PSpowerpackthatacceleratesyoufrom060in3.8seconds.
DistinctivestylingandMagalloywheelsmakethisbikestandoutbeforeitracesawayfromthe
pack.
Digitalignitionandaconstantvacuumcarburetorfacilitatebettercontrolofignitiontiming
ThatswhyPricedatRs.76,206/onroadMumbaitheKarizmaisavailableinsevenattractive
shades.
IfwetaketheexampleofKarizma(AbikeofHeroHonda).

d. PROMOTIONSTRATEGYOFHEROHONDA
A thorough understanding of the fastchanging consumer behavior, new market segments and
productopportunitiesalongwithsensitivitytochangingcustomerneeds,formthecoreofHero's
marketingstrategyandphilosophy.
At Hero, we essentially have a completely customerdriven approach. A nationwide dealer
network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise
holdersformotorcycles,ensuresconvenientaccesstotheGroup'sproductsacrossthecountry.
WithadeepsenseofbelongingtotheHerofraternity,theGroup'sdealernetworkhascatalyzed
growthandactedasastrongbridgebetweenthecustomersandtheGroup.
Conventionally,veryfewIndianbicyclemanufacturerswereinterestedinexports.However,the
HeroGroup'sforayintotheoverseasmarketspioneeredIndianexportsinthebicyclesegmentas
early as 1963. It was a move prompted primarily by the need to be attuned to the global
marketplace.
WhileinitialexportswererestrictedtoAfricaandtheMiddleEast,todaymorethan50percent
of the Group's bicycle exports meet the demands of sophisticated markets in Europe and
America.Thisisprimarilybecauseofappropriateproductdevelopmentandexcellentqualitythat
Herooffers.
The Group has undertaken a steady up gradation of technologies and there has been
diversificationsandsettingupofnewerestablishmentstomeetstringentinternationalstandards.
Atthecoreofitallisacustomercentricschemeofpoliciesandproduction...andthebottom
lineisto"AddValuewhileEngineeringSatisfaction.
Advertisementstrategy
HeroHondahassnaggedthebratpackVirenderSehwag,MohammadKaif,YuvrajSinghand
Zaheer Khan. The twowheeler maker, an official sponsor of the World Cup tournament to be

playedinSouthAfricainFebruary,hasbroughttheyoungandexcitingcricketersoftheIndian
teamonboardasbrandambassadors.
TheFabFouralongwithteamcaptainSouravGangulywillfeatureintheadsforitslatest
motorcyclemodel:theAmbition.HeroHondaisextremelycageyaboutsayinghowmuchthey
hadtoforkouttobringthetopcricketerstofeatureintheads.
AtulSobti,seniorvicepresident,marketingandsalesdeclinedtosayhowmuchtheyplannedto
investintheadcampaign."ItwillgivealotofleveragetothenewproductAmbitionbygiving
theimageofapowerfulandefficientmotorcycle.Thepowerfuelbikewillbewellrepresented
bytheleadershipqualities,powerandthecapacitytofaceanychallenges,"headded.
The current ad for Ambition is tame it shows an important file reaching a destination in time
becauseofthepowerofthemotorcycle."Itdoesnotproperlyappealtothecustomersaboutthe
powerandefficiencyoftheproduct.'TeamAmbition'willbemuchbettersuitedtorepresentthe
product,"sourcessaid.
Hero Honda is hoping to crank up sales of Ambition because of the endorsements by the top
cricketersduringtheWorldCupwhencricketfeverwillbeatitshighest.
One major advantage is that none of its rivals will be able to use cricketers to endorse their
products before and after the World Cup because of the ambushmarketing clause that the
InternationalCricketCouncil(ICC)hasworkedintotheplayerscontracts.
The issue had sparked a row when it was raised just before the ICC champions trophy in Sri
LankainSeptemberbutwasresolvedafterastandoffbetweenICC,thecricketboardsofseveral
nationsandtheplayers.
HeroHondaplanstoincreaseitsmarketshareto50percentthisfiscalandistargetingsalesof
10,000Ambitionsamonth.Itssharedippedfrom48percentto45percent.
The133ccAmbitiongenerates11bhpofthrust,whichhasbeenkeptlowinordertoimprove
fuelefficiency.Ithasbeenplacedinbetweenthe125ccand150ccmotorcyclecategoriestodraw
themaximumclientele.Thebikeacceleratesfrom060kmphinonlysixseconds.
Whilelaunchingthenewcampaignwiththecricketers,HeroHondaisalsodrawingupplansfor
acoupleofadswiththeotherbrandambassador,HrithikRoshan.

Hero Honda's association with cricket goes back to 1993, when it sponsored the Hero Cup. It
was the official sponsor of the recent ICC Champions Trophy in Sri Lanka and will have the
samestatusfortheICCWorldCupin2003.

6. PURPOSEOFTHESTUDY
Whenever we think of the origin of Indian Twowheelers market, we think of old and stodgy
Vespa based models of scooters and Japanese models of motorcycles, but now in the era of
globalizationthesituationhascompletelychangedasthemanyindustriesaresizzlinghotwith
continuouspoachingofscootersbymotorcyclesaswellasregularlaunchingofnewmodelsof
motor bikes. Earlier the shelf life of models was in tune of 1015 years but now it has come
downdrasticallyduetointensecompetitioninmotorbikeindustry.HeroHondaistryingtosave
its dominance in motorbike market from rigorous attacks of Bajaj Auto and TVS while Bajaj
Autoischangingitsportfoliobyheavyinclusionofmotorcyclesinit.InthisbattleLMLGroup,
Kinetic Group, Yamaha Motors, Honda Motors and Royal Enfield are also trying to provide
somethingnewtothecustomers.

7. RESEARCHOBJECTIVES
Tostudythepositionof4strokesbikesinIndia
Toforecasttheconsumersrequirementsandtostudytheconsumerspreferencebycollecting
thedatathroughquestionnaire
Todeterminetheconsumersbuyingattitudestowardsthe4strokesbikes
Todeterminethesatisfactionlevelofconsumertotheproductfeaturesandvariousaspectsto
the4strokesbikes
Todeterminetheusageoftheproduct
Totracethecustomerprofile

LITERATUREREVIEW
8.

LITERATUREREVIEW
Motorcyclesarethemostexpensiveofalltwowheelers.Theyaremorepowerfulthanscooters
andmopeds,havethehighestloadcarryingcapacity(whichisessentialforruralareas),arefuel
efficient,havebetterroadgrip,andarethemostexpensive.Besides,motorcyclesareviewedas
trendyintheurbanareasascomparedwithscootersandmopeds.
Motorcycle production in India began in 1952, when Enfield India Limited commenced
manufactureatitsplantinTamilNadu.Itwastheonlymotorcycleproducerinthecountryuntil
theearly1960swhenIdealJawa(India)PrivateLimitedandEscortsLimitedenteredthemarket.
By197071,productionofmotorcycleshadreached39,000unitsperannum.
Thefortunesofthemotorcycleindustrychangedaftertheannouncementoftheliberallicensing
policy in 1982 whereby foreign collaboration was allowed. In 1982, the Government allowed
foreignplayerstoentertheindustrythroughjointventures.Withinfouryears,theTVSGroup
tied up with Suzuki, the Hero Group with Honda, the Escorts Group with Yamaha, and Bajaj
Auto Limited (Bajaj Auto) with Kawasaki. TVS Suzuki introduced IndSuzuki in 1984, Hero
Honda Motors Limited (HHML) launched CD100 in 1985, and both Escorts and Bajaj Auto
launched their models in 198687. These models catered for the upwardly mobile, middleto
upperincomegroupconsumerswhopreferredastylish,powerfulvehiclethatcouldbeusedas
anurbanpersonaltransportationvehicle.Theprincipalbrandsthatcompetedinthe1980swere
theHHMLCD100(afourstroke100cc),theIndSuzukiAX100(fromTVS,twostroke,100cc)
andtheEscorts
Yamaha RX100 (twostroke, 100cc). While the CD100 was positioned primarily on the
efficiencyplank,givingridersanunprecedentedmileageof80kmsperlitre(kmpl),theRX100
becamepopularwithyoungbuyersbecauseofitshighpower.TheAX100tookthemiddlepath,
balancing power with reasonable fuel efficiency. To reinforce its image of being a maker of
powerful motorcycles, Escorts launched the 350cc twincarb, twincylinder Yamaha RD350, a
vehiclethatsoongainedcultstatus.Itoffered36bhp,butwasplaguedbyproblemsveryfew
mechanics could tune the engine and the average fuel consumption was as low as 15 kmpl.
Subsequently,theproducthadtobediscontinued.Thelaunchofthe100ccmotorcycleswaspath

breaking, as till then the existing big models like the Yezdi, Rajdoot and Bullet could not
competewithscooters.
A significant development in the motorcycle industry during the late 1990s was the shift from
twostroke to fourstroke technology. The attraction of the fourstroke technology was earlier
limited to fuel efficiency, while twostroke held its own by offering better performance and
easier maintenance. But, following the enforcement of India 2000 emission norms beginning
April1,2000,thelesspollutingfourstrokehasbecomethepreferredtechnology.Thetwostroke
technology can also meet the existing environment norms, but only when supplemented by
catalyticconvertersanoptionthatisbothcostlyandshortsighted.Thehightemperatureofthe
exhaust, combustion irregularities, the problem of lubricating oil contamination with metallic
additives, and finally, fuel adulteration can poison the catalyst and render it completely
ineffective. Further, the use of catalytic converter affects the initial pickup of twostroke
engines, which is one of their main attractions. Given these shortcomings, most motorcycle
manufacturers have offered fourstroke vehicles. While the fourstroke motorcycle segment is
the fastest growing, it is also highly competitive. Competition has intensified in this segment
sinceCY2001whenplayersintroducednewproductsatarelativelyfastpace.Also,newentrants
have entered the market by introducing their products at lower price points, while the existing
playershaveannouncedpricecuts.Thishasledtopricecompetitioninthedomesticmarket.At
thelowerendofthesegment,BajajAutohasitsBoxerrangeofmotorcyclesandBykHHML
hasDawnaswellasCDDawnandKELBoss.Abovethissegment,therearestrongbrandssuch
asVictor(TVS),PassionandSplendor(HHML),Caliber115andAspire(BajajAuto),Freedom,
AdrenoandEnergy(LML),andCruxR(Yamaha).ThroughitsCBZmodel,HHMLhadtapped
thepremiumsegmentofthemarketin1999.
Since then, however, quite a few models such as Pulsar 180 by Bajaj Auto and Fiero by TVS
havebeenlaunchedinthissegment.RoyalEnfieldisthemarketleaderinthelifestylesegment.
ThissegmenthasalsoattractednewmodellaunchessuchasEliminatorbyBajajAuto,Aquilaby
KELandKarizmabyHHML.

NEEDFORFOURSTROKESBIKES

GrowthofBikes
Significant growth has been witnessed in the motor cycle segment and the company is fully
awareoftheneedtoenterinthissegmentformaintaininggrowthandoptimizingproductmix
thegrowthinmotorcycleisattributedlargelytotheopeninguptheruralmarketsandalsotoits
wider acceptance in the youth market. It is growing at any average rates of 20% over the last
threeyears.Anotherhighlegalisthatthemotorcyclesaleshavesurpassedthescootersalesfor
thefirsttimein19981999untilthenmotorcyclewasalwaystrailingbehind.
The twowheeler industry has been rather slow in taking advantages of the board bandings
introducedinRajeevGandhitimewaybackin1994.
Eventoday,therearemanufacturessuchasEscort,HeroHonda,Bajaj,YamahaandLML,which
latertoonlyasinglesegmentlikemotorcycleorscooter.Anyvariationofdemandinaparticular
segmenthitsthemhandsitisthereforeaproductpolicytohavepresenceineachsegment.

Growthoftwowheeler

BIKE
SCOOTER
MOPEDS
TOTALINLACS

20082009

20092010

GROWTH%

2.95
3.32
1.54
7.9

3.81
2.95
1.58
8.35

+29
11
+2.8
+16.8

SOURCE:SurveyofIndianindustriesinJan.2005

EmissionNorms

The years 2004 emission norms are more stringent than stringent norms as may be seen from
table:

GRAMES/K.M.
2009
2010

CO
4.5
2.0

HC+NOX
3.6
1.5

Theindustryneedtoadoptsuitabletechnologysothatitcanconvenientlymeetthesehornsin
time since the production largely of two stroke engines figment of catalytic converter will
becomenecessary.Butitwillleadsomeincaseinprices.Thelifeoftheseconverterislimitedto
25/30thousandhenceconsumerwillprefersomethingdurableandlongerlasting.
Somemanufactureisthereforeplanningtoswitchovertostroketechnologytocomplywiththe
emissionnorms.Ithasanadditionaladvantageofmorecompletecombustionofhydrocarbonsin
petrol, which gives higher mileage and better fuel economy. The 4 strokes bike are currently
givingoffuel70to80km/hr.thiswillimportantfromconsumerspointofviewbecauseofhigh
pricelevelofpetrolinIndia.Itisthereforenotsurprisingthateverymajorplayeristryingtoget
intothemotorcyclemarkettohaveapieceofcake.
Amazingbuttrue!

JustwhenthemarketofscooterisshrinkinginIndiaresidentsLondonseemtobeswitchingto
scooter.ThenumberofscooteronBritonsroadrise40%overthepart12months.Asroadsget
allegedwithtrafficandaveragespeedoftrafficisLondonhasdroppedto19.2km/hrmoreand
morepeoplearebuyingscootertogetaroundtrafficshares.
Motorcycleassociationhasreleasedfiguresacknowledgingthenewpopularityof4strokes
bikes.

RESEARCH
METHODOLOGY

9. RESEARCHMETHODOLOGY
MeaningofResearch
Researchisacommonparlancereferstoasearchforknowledge.Onecanalsodefineresearchas
ascientificandsystematicsearchforpertientinformationonaspecifictopic.Infact,researchis
anartofscientificinvestigation.TheAdvanceLearnersDictionaryofcurrentEnglishlaysdown
themeaningofresearchasAcarefulinvestigationorinquiryspeciallythroughsearchfornew
facts in any branch of knowledge. Redman and Mory defines research as a Systematized
effortstogainnewknowledge.Somepeopleconsiderresearchasamovement,amovementto
fromtheknowntounknown.Itisactuallyavoyageofdiscovery.Wepossessthevitalinstinctof
inquisitivenessfor,whentheunknownconfrontsus,wewonderandourInquisitivenessmakeus
probeandattainfullandfullerunderstandingoftheunknown.

Methodology
In planning and designing a specific research project, it is necessary to anticipate all the steps
that must be undertaken if the project is to be successful in collecting valid and reliable
information.

RESEARCHDESIGN
Theresearchdesignisthedeterminationandstatementofgeneralresearchapproachofstrategy
adoptedfortheparticularproduct.Itistheheartoftheplanningwhichthedesignadherestothe
researchobjectedwhichwillensurethattheneedswillbeserved.Mystudyisbasedon
DescriptiveResearchasitisinvestedtoproduceaccuratedescriptiveofvariousrelevanttothe
decisionfacedwithoutdemonstratingthatsomerelationshipexistwithinvariable.Itisusedto
measurethebehaviorvariablesofpeopleofsubjectwhoareunderthestudy.

The research undertaken was descriptive research in nature. The emphasis was made to
understandthenatureandtheexpectationsofthecustomers.

SAMPLE

SAMPLINGTECHNIQUES
Thetypeofsamplingthatwascarriedoutwasprobability(convenience)Samplingduetolimited
resourcesavailable.
Innonprobabilitysampling,IhavechosenRANDOMsampling.Becausethiswasbest
samplingmethodtodomarketsurvey.Ontheotheraspect,tocoverallconsumersinGhaziabad
waseasytask.

SAMPLESIZE
Thetotalnumberoftheseselectedpersonsiscalledsamplesize.Inthiscase,studysampleunits
areTwoHundredEightyTwo.

SAMPLEAREA:Ghaziabad(RajNagar,RajendraNagar,NehruNagar,G.T.Road)

DATACOLLECTIONMETHOD
COLLECTINGTHEDATA

Primarydata
Secondarydata
Primarydata:
ThroughsurveyresearcherobtainsprimarydatadirectlyfromtheReaderthroughfollowing
method.
Observationmethod.
Interviewmethod.
Questionnaires.
Observationmethod:
Researcher went to the dealers showroom and service center and even parking places.
Researcher directly observes the customers researcher with out asking any question. Here
researcherfoundmostofthecustomerwasemptybuyingbehavior.
InterviewMethod:
Researcherwenttotheservicecenterandparkingplacesandcollectsthedatathroughpersonal
interview.

SURVEYINSTRUMENTS
Researchsinstrumentisquestionnairesforcollectingtheprimarydata.Thisisverycommonand
flexibleinstrument.
ThroughQuestionnaires:
Researcher collects most of the data through questionnaires researcher went to the consumers
andrequestedthemtofillthequestionnaires.
Secondarydata:
ThroughCompanyProfile
ThroughNewspapers
TimesofIndia
HindustanTimes
TheHindu
EconomicsTimes
ThroughMagazines
BusinessIndia
AutoExpress
BusinessIndia
AutoIndia
ThroughT.V.Channel
CNBCAwaz

LIMITATIONS
SmallSamplesize:
Inmysurvey,Ihavetakenasamplesizeof282customers,butonlywiththesesamplesI
cantmakeaproperconclusion.
TimeConstraint:
Timeforthisprojectisnotsufficient.AsIgoforthesurveyatthedealershipthentime
forcompletingandfillingthequestionnairesisnotsufficient.
SampleArea:
ThestudywasconductedinGHAZIABADonly.Hence,thestudymaynotbeusefulfor
projectionofbehavioralaspectofconsumerslivinginothercities.
MoneyConstraint:
Budgetandfinancearealwaysbeenconstraintsindoinganyproject.

DATAANALYSISAND
INTERPRETATION

10. DATAANALYSISANDINTERPRETATIONS

PURCHASEOF2STROKEAND4STROKEBIKES:
Bikes
2strokes

No.ofConsumers
76

%age
27%

4strokes

206

73%

TOTAL

282

2strokes,27%

4strokes,73%

2strokes

4strokes

INTERPRETATION:
Mostoftheconsumersi.e.73%wanttopurchasea4strokesbike.
Whereas,27%consumerswanttopurchasea2strokesbike.

INFLUENCINGFACTORS:
Factors
Advertisement
SalesTeam
Friends
Family
TOTAL

No.ofconsumers
70
50
110
52
282

%age
25
18
39
18

45
39

RESPONDENTS

40
35
30
25

25
20

18

18

15
10
5

ily
m
Fa

s
nd
ie
Fr

Te
a
s
le
Sa

dv

er

tis

em

en

INTERPRETATION:
Mostoftheconsumersi.e.39%areinfluencedbythefriends.
25%consumersoutof282respondentsareinfluencedbyadvertisement.
18%consumersoutof282respondentsareinfluencedbythefamily.
Whereas, rest of the consumers i.e. 18% are influenced by sales team while making the
purchasedecision.

 RESPONSE OF THE CONSUMERS REGADING MODELS AND

No.ofmodels&colours
40
140
40
30
32
282

%age
14%
50%
14%
11%
11%

80

70

NO.OFRESPONDENTS

70
60
50
40
30
20

20

20
15

16

10
0
HEROHONDA

BAJAJ

LML

TVS

YAMAHA

INTERPRETATION:
Mostoftheconsumersi.e.50%likecoloursandmodelsofBajajmotorcycles.
Whereas,equal14%consumerslikecoloursandmodelsofHeroHondaandLML
motorcycles.
Moreover,restequal11%consumerslikecoloursandmodelsofTVSandYAMAHA
motorcycles.

PREFERENCEFACTOR:
Featuresofbikes
Power
Mileage
Lowmaintenance
Total

No.ofconsumers
136
112
34
282

%age
48%
40%
12%

12%
48%
40%

Power

Mileage

INTERPRETATION:
40%consumersprefermileageintheirbike.
48%consumerspreferpowerintheirbike.
12%consumerspreferlowmaintenanceintheirbike.

LowMaintenance

PREFERENCEOFBIKEREGARDINGCC:
PreferCCofbikesby
consumers
Under100cc
100125cc
125150cc
150cc&above
Total

No.ofconsumers
0
84
144
54
282

%age
0%
30%
51%
19%

19%
30%

51%

Under100cc

100125cc

125150cc

150cc&above

INTERPRETATION:
Mostoftheconsumersi.e.51%liketopurchasethebikeinbetween125ccand150cc.
And30%ofconsumersliketopurchasethebikeinbetween100ccand125cc.
Whereas,rest19%ofconsumersliketopurchasethebikein150ccandabove.

FACTORSAFFECTINGCONSUMERBUYINGBEHAVIOUR:

Factors

No.of
Respondents
22
36
90
22
20
56
20
16
282

RESPONDANTS

Price
Average
Looks
BrandImage
Power
Pickup
LowMaintenance
AfterSalesService
Total

50
45
40
35
30
25
20
15
10
5
0

%age
8%
13%
31%
8%
7%
20%
7%
8%

45

28
18
11

11

10

10

Price
Average
Looks
BrandImage
Power
Pickup
LowMaintenance
AfterSalesService

INTERPRETATION:
31%consumersoutof282areinfluencedbyLooksFactors(MostInfluencingFactor).
20%consumersoutof282areinfluencedbypickupfactor.
13%consumersoutof282areinfluencedbymileage.

COMPARATIVEANALYSIS:

BrandName
Yamaha
HeroHonda
Bajaj
TVS
LML
Others
TOTAL

No.ofconsumers
20
116
76
36
20
14
282

%age
7
41
27
13
7
5

45
40

CONSUMERS(in%)

35
30
25
20
15
10
5
0

Yamaha

HeroHonda

Bajaj

TVS

LML

Others

INTERPRETATION:
41%respondentsoutof282consumersliketopurchaseHeroHonda(SurvaGunaSmpana).
27%respondentsoutof282consumersliketopurchaseBajaj.
13%respondentsoutof282consumersliketopurchaseTVS.
77%respondentsoutof282consumersliketopurchaseLMLandYAMAHA.

POSTPURCHASEANALYSIS:
PostPurchaseBehavior
FullSatisfied

No.ofconsumers
42

%age
14.89

Satisfied
Dissatisfied
TOTAL

160
80
282

56.74
28.37

15%
28%

57%

FullSatisfied

Satisfied

Dissatisfied

INTERPRETATION:
Only15%consumersarefullsatisfiedwiththeirbike.
Whereas57%and28%consumersaresatisfiedanddissatisfiedwiththeirbikerespectively.

FINDINGS

FINDINGS

AMONGDIFFERENTAGEGROUP
Theagegroup2025yearsfiguresouttobeverymuchawareregarding4strokesbikes
Warranty/Guarantee never influenced any age far the purchase availability of spare part is
consideredmostimportant
Mileagewasgiventoppriority
Giftschemesandfinanceoptionarenotoptionisnotmoresuccesstoinfluencethepeople
DIFFERENTINCOMEGROUP
TheincomegroupRs.800012000seemstobeveryawareregarding4strokesbikesmarket

SUGGESTIONS

SUGGESTIONS

The best target market for any new product is 20 to 35 yrs and income group of 8000 to
12000
Before the launch an aggressive advertising must be carried out in order to inform the
consumeraboutthenewbike
Themediaadoptedforsuchpurposeshouldbeelectronicasitiswildlyaccepted
Continuous innovation in product process and services too are recommended to get the
competitiveedge
Nicely designed and fuel efficient vehicle Is must to find better prospects and widen its
market
Easilyavailablesparepartsatreasonablepricebackedbyefficientsalesascompetitions
An eye on competitors policies and review of its own according to changing market
conditionwillhelpinformulationofeffectivestrategiesfromtimetotime
ThepricingTAGwhichBAJAJisgoingtoputonitsbikesshouldnotbemoreRs.35,000
50,000 in any case, because it is the price which is going to determine the success of the
product
Throughdemonstrationinruralareasothattheycangetspecificationofbike

CONCLUSIONS

CONCLUSIONS
Fromtheanalysisofthedata,itcanbeconcludedthattheBajajandHeroHondamotorbikesare
mostfamiliarbypeople.
Anidealbyassuggestedbyrespondedshouldhavethefollowingfigures:
Goodlooks
Goodmileage
Affordableprice
Aftersalesservices

REFERENCESAND
ANNEXURE

REFERENCES

Inthisprojectwhilefinalizingandforanalyzingqualityproblemindetailthefollowingbooks,
magazinesandwebsiteshavebeenreferred.
BooksConsulted:
MarketingManagementPhilipKotler
ResearchMethodologyKothari
BusinessStatisticsS.P.Gupta
MagazinesConsulted:
IndianJournalofMarketing
IBATJournalofManagement
JournalofIndianManagement&Strategy
AutoExpoofIndia
Newspapers:
Hindustantimes
TimesofIndia
TheHindu
FinancialExpress
Economicstimes

WebsitesConsulted:
www.bajajauto.com
www.herohonda.com
www.lml.com
www.yamaha.com
www.google.com

ANNEXURE
QUESTIONNAIRE

Name
Father'sName
Age
Nationality
Address

:
:
:
:
:

TelephoneNos.

.
.
.
..
.
.
.
.

1. Areyouusingthebike:
a. Yes

b. No

2. Whoareyouusingthebike
a. 2Strokes

b. 4Strokes

3. Whichbikedoyoulikemost
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

4. Whatwillyouprefer
a. Mileage
c. Maintenance
e. Looking

b. Power
d. Price

5. HowmuchCCBikeyouwant
a. Under100CC
c. 125150CC

b. 100125CC
d. Above150CC

6. MaximumMileageofgivenby
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

7. AttractivePriceofCompany
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

8. Whichcompanyproduceminimummaintenancebike

a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

9. Whoinfluenceyourdecisionmostwhilepurchasingbike
a. Parents
b. Friends
c. Advertisement
d. Other
10. Whichcompanyprovidetheattractivefinancefacility
a. HeroHonda
b. Bajaj
c. LML
d. TVS
e. Yamaha
f. Others
11. Whichcompanyprovidefestivaloffers:
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

12. Whichbrandawarebyyou
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

13. Howmuchmoneyyoucanexpendin4Strokesbikes
a. 30,00035,000
b. 35,00040,000
c. 40,00050,000
d. above50,000
14. Whichcompanyprovideaftersalesservices
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

15. Whichcompanypricingstrategiesofbetteraccordingtotheirfeatures
a. HeroHonda
b. Bajaj
c. LML
d. TVS
e. Yamaha
f. Others
16. Whichcompanyhavemoremodels&colours
a. HeroHonda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

ConsumerSignature