Project Report

On
Comparative Analysis
Of 4Stroke Bikes
(Submitted towards the fulfillment of Post Graduate
Diploma of Management)

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CONTENTS

Title page

Acknowledgement

Certificate

INTRODUCTION

INDUSTRY OVERVIEW

MARKETING STRATEGIES

LITERATURE REVIEW

RESEARCH METHODOLOGY

DATA ANALYSIS AND INTERPRETATION

FINDINGS

SUGGESTIONS

CONCLUSION

REFERENCES AND ANNEXURES

ACKNOWLEDGEMENT

We express our sincere gratitude to our project guide Mr. Kamal K.Gupta for giving
us the opportunity to work on this project.

We are thankful to GUIDANCE NAME our Project Guide for their guidance and
encouragement without which the satisfactory completion of our project would not have
been possible. They have been a constant source of inspiration to us, showing all the
patience and abundant encouragement throughout the project duration.

Also, we are thankful to the librarians and staff of our institute, for their continued
support and invaluable encouragement.
Above all, we are thankful to the Almighty and to our parents for their blessings,
humble support and showing their belief in us.

YOUR NAME

CERTIFICATE

This is to certify that the project study titled submitted by YOUR NAME on fulfillment of
the requirement for the award of Post Graduate Diploma in Management is a record
of original work carried out by him under my guidance and supervision. This work has
not been submitted elsewhere for award of any degree or diploma.

INTRODUCTION

1. INTRODUCTION

HISTORY OF BIKES Through the years

Bob Stark has been involved with Indian motorcycles throughout his entire life. Bob's father

became an Indian dealer in 1918, after returning from military service during

World War I. Bob still has a photo of his mother riding in a sidecar in 1923. Since Bob was born

in 1934, his parents were involved with Indian cycles long before that.

At the age of 10 Bob started staying around his fathers shop, and developed quite an
interest in the Indian cycles. The mechanic considered him a pest, but allowed him to do
minor items, such as changing oil & polishing cycles.
By 1946 Bob was riding his own Whizzer motorbike, and in 1947 graduated to a Cushman
scooter. By 1950, he had learned quite a bit more about the cycles and got his first Indian, a 741
Scout with skirted fenders. He bought the cycle for $50.00 without his fathers permission and
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
traded a new Triumph 650cc even up for it. That was the best cycle deal in Bob's life. 1951 also
was high school graduation, and the start of college. Some extra money was obtained during
the next 3 summers by working on cycles. Bobs father had sold the Indian shop in 1952, so the
work 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. This was a year of working days at Goodyear Tire & Rubber and nights
on Indians. A short time was spent in the army during 1956 & 1957. The off hours were spent at
Herb Reiber' s Indian shop in Washington D.C. The '48 Chief (purchased in 1951) was kept
about 2 miles from Fort Belvoir.

After an army discharge in the fall of 1957 Bob returned to Goodyear Tire during the day and worked
on Indians at home during the evenings. By 1957 he reopened his fathers shop part time, selling the
Royal Enfield built Indians, servicing them, and servicing the older Chiefs & Scouts. By 1958

Goodyear Tire was no longer in the picture as Bob quit to spend full time at the cycle shop. In 1959
health reasons mandated a move to Florida, and more building of cycles at home, while working at
Martin Marietta Corporation. 1961 was a move to California, and the nominal

home workshop for night work. Later 60' s meant trips back to Florida as part of the
launch crew on the first 2 moon shots from Cape Canaveral. Gary was born during this
time frame and started riding between Shorty & Bob by age 2. In 1970, Starklite Cycle
was formed and Bob was back 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 Indians and manufacturing parts for them. By
now Gary was riding. He got his first Indian at age 5, and his second one at age 7. He
was given a '47 Chief at age 5 and he finished his restoration of it at age 16.
As the years have progressed, Indian parts have become increasingly scarcer. This has
led to the 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 believe to be the best quality of Indian parts available.
The line now stands at over 3000 items. Shortly has done her part by putting up with all
of this for nearly 30 years, as well as handling most of the work in connection with the
Indian Motorcycle Club. Gary has started helping her the last couple or years with much
of the mailing and typesetting, as he has become very proficient on the computer.

In the fall of 1988, Starklite moved from Fullerton to Perris. The shop in Fullerton was left in the
hands of Wilson Plank, who was employed there for 14 years. He is currently operating it under
the name of American Indian Specialists and is running it very successfully working on Indians.
As you can see from this brief background, The Stark Family has been involved in Indians from
1918 to the present with virtually no interruptions. Starklite is a family owned business involving
Bob, Shorty, and Gary, as well as others. Gary is the third generation to be involved.

The most gratifying part of the business has been the amount of nice people we have
met. We consider them friends, not just a customer.

BACKGROUND

When we think of Indian Twowheelers market, we think of stodgy Vespa based models of scooters
and Japanese models of motorcycles, but now the situation is completely changed as the industry is
sizzling hot with continuous poaching of scooters by motorcycles as well as regular launches of new
models by all players. Earlier the shelf life of models was in tune of 1015 years but now it has come
down drastically due to intense competition. Hero Honda is trying to save its dominance in
motorcycles market from rigorous attacks of Bajaj Auto and TVS while Bajaj Auto is changing its
portfolio by heavy inclusion of motorcycles in it. In this battle LML Group, Kinetic Group, Yamaha
Motors, Honda Motors and Royal Enfield are also trying to have a say.

2.

INDUSTRY OVERVIEW

(TWOWHEELERS AND THREEWHEELERS)

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 sales respectively. This distinction was achieved due to variety of reasons like
restrictive policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public transportation system etc.

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
Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters
and threewheelers. Finally, in 1960, it set up a shop to manufacture them in technical
collaboration with Piaggio of Italy. Although various government and private enterprises entered
the fray for scooters, the only new player that has lasted till today is LML. Under the regulated
regime, foreign companies were not allowed to operate in India. It was a complete sellers
market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal Jawa
and Escorts. While Enfield bullet was a fourstroke bike, Jawa and the Rajdoot were twostroke 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, the then market
leaders Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four
IndoJapanese joint ventures. With the availability of fuelefficient low power bikes, demand swelled,
resulting in Hero Honda then the only producer of four stroke bikes (100cc category), gaining a top
slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero

Honda brought in the first twostroke and fourstroke engine motorcycles respectively. These two
players initially started with assembly of CKD kits,

and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle
segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the
last five years. The industry had a smooth ride in the 50s, 60s and 70s when the Government
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth
in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn
vehicles in 1990. The entry of Kinetic Honda in mideighties with a variometric scooter helped in
providing ease of use to the scooter owners. This helped in inducing youngsters and working
women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s,
this trend was reversed with the introduction of scooterettes. In line with this, the scooter segment
has consistently lost its part of the market share in the twowheeler market.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector
were the incessant rise in fuel prices, high input costs and reduced purchasing power
due to significant rise in general price level and credit crunch in consumer financing.
Factors like increased production in 1992, due to new entrants coupled with the
recession in the industry resulted in companies either reporting losses or a fall in profits

ThreeWheelers

India is one of the very few countries manufacturing threewheelers in the world. It is the
world's largest manufacturer and seller of threewheelers. Bajaj Auto commands a
monopoly in the domestic market with a market share of above 80%, the rest is shared
by Bajaj Tempo, Greaves Ltd and Scooters India.

3. MAJOR PLAYERS AND COMPETITION

a. HERO HONDA LTD.

The legend of Hero Honda what started out as a Joint Venture between Hero Group, the
world's largest bicycle manufacturers and the Honda Motor Company of Japan, has
today become the World's single largest twowheeler Company. Coming into existence
on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a
revolution on twowheels, made even more famous by the 'Fill it Shut it Forget it '
campaign. Driven by the trust of over 5 million customers, the Hero Honda product
range today commands a market share of 48% making it a 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.

BAJAJ AUTO LIMITED

The Bajaj Group came into existence during the turmoil and the heady euphoria of India's freedom
struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of Mahatma
Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness
and determination to succeed which are characteristic of the Company today, are often traced back
to its birth during those long days of relentless devotion to a common cause.

Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of
twenty seven. Putting the Nation before business, he devoted himself to the latter only after
India achieved independence in 1947. But when he did so, he put his heart and soul into it.
Within a short while, he not only consolidated the Group, but also diversified into various
manufacturing activities, elevating the Group to the status it enjoys till this day.

Rahul Bajaj today heads the Group. He has been the Chief Executive Officer of Bajaj
since 1968 and is recognized as one of the most outstanding business leaders in India.
As dynamic and ambitious as his illustrious predecessors, he has been recognised for
his achievements at various national and international forums.

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 register an impressive figure of Rs.42.16 billion (US$ 936 million).

Group/ Management

Mr. Jamanalal Bajaj founded the Bajaj Group in the 30s. The group now has 24 companies,
including 6 listed companies. Besides BAL, the major companies in the group are Mukand

Ltd. (Alloy/ Special Steel, term key projects), Bajaj Electricals Ltd.(Electrical equipments,
fans, and appliances) and Bajaj Hindustan Ltd.(Sugar, industrial alcohol)

BELIEFS

Transparency: A commitment that the business is managed along transparent lines. Fairness: To
all stakeholders in the Company, but especially to minority shareholders.

Disclosure: Of all relevant financial and nonfinancial information in an easily

understood manner.
Supervision: Of the Companys activities by a professionally competent and
independent board of directors.

PRESENCE

Distribution network covers 50 countries.

About 150,000 units likely to be exported this year.

Dominant presence in Sri Lanka, Mexico, Bangladesh, Columbia, Guatemala, Peru,

Egypt, Iran and Indonesia.

Largest exporter of threewheelers over 40.875 units exported last year. All products
customized as per market needs .

83% growth in total exports in 200203.

Different models of Bajaj 4stroke bikes:

Bajaj CT 100

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

99.27cc

Max. Power 8.2 BHP @ 7500rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes 110mm Drum

Rear Brakes 110mm Drum

Front Tyre

2.75 X 18

Rear Tyre

2.75 X 18

Wheelbase 1225mm

Ground Clearance 0mm

Dry Weight

109 Kg

Tank Capacity

Colours

9.3 Litres

Black, Maroon, Silver, Blue

Bajaj Discover Electricstart

Engine 4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

124.52cc

Max. Power 11.51 BHP @ 8000rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes 130mm Drum

Rear Brakes 130mm Drum

Front Tyre

2.75 X 17

Rear Tyre

3.00 X 17

Wheelbase 1305mm

Ground Clearance 0mm

Dry Weight

129 Kg

Tank Capacity

Colours

10 Litres

Black, Red, Blue

Bajaj Pulsar 150 ES DTSi

Engine4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

178.6cc

Max. Power 16.5 BHP @ 8000rpm

Gear Box

5 Speed

Ignition

CDI

Front Brakes Disc

Rear Brakes 130mm Drum

Front Tyre

2.75 X 17

Rear Tyre

100/90 X 17

Wheelbase 1330mm

Ground Clearance 165mm

Dry Weight

140 Kg

Tank Capacity

Colours

c.

15 Litres

Black, Silver, Orange, Blue, Dark Grey

LML AUTO LTD.

The company was incorporated in 1972 as a private limited company called Lohia
Machine Ltd. and starting manufacturing machine in technical collaboration with ARCT
FRANCE in terms of companies Act 1956. The company was converted into public
limited company. The activities were diversified by putting up synthetic yarn processing
unit in 1978. Nylon 6 chips manufacturing of LML scooter. The activity of engineering
unit was phased out and fiber unit was delinked. As such as the company now
manufacturing scooters and motorbike under the brand name of LML.

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 entered the scooter industry in 1982. It was essentially operating in a seller
market which had huge unmeet demand it was able to gain substantial and market
shore approached operand from 14000 a month in 1990 to 5000 a month in 1992.
Overall sales in1991 were half that of 1990. 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.

However there was considerable reshaping within the existing demand with the higher
price TS rapidly wresting a 35 percent shares of LML 20 sales. By end 1992 the
company had managed 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 product related information to potential customers.

Innovative marketing such as exchanging any old scooter for new LML one and paying the
difference is easy installment he helped in booming up the market share of LML considerable
LML enthused its dealer with mere generous morging which ranges from Rs725 to Rs1100.

By 1993, it introduced a new model LML select that proved an instant success by mid
1993 as much a 60 percent of LML sales to percent by 1993 had increased to 15000
per month. It stayed at the sales reputed to 20000 a per month by the yearend.

The severe demand recession during October 1990 top September 1992 upset the working of
company resulting into heavy loses. As a result of house Research and Development. Activities
the company could introduce a new range of scooter with lot of added features like a better fuel,
efficient engine and attractive metallic colors etc with earning of recession the sales of company
picked up a level of about 5000 scooter to 2000 scooter per month. During the year end 30997
LML has achieved a remarkable turn over by earning a net profit Rs2640 lacks as compared to
net loss of 607 during the year proved further and the company has earned a net profit of Rs467
crores during the period ended on 30997 before exceptional item has also gone up from Rs
346.39 crores during 199394 to Rs748.72 crores during 199697.

From a mere 7 percent, market share in 19911992 LML has today made significant
result and commands an impressive market share of about 26 percent.
LML achieved 14.63% increase in volumes against the backdrop of a slow down in the
two wheeler industry and a negative growth in the scooter segment.

Different models of LML 4strokes bikes:

LML Freedom DX

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

109.15cc

Max. Power 8.5 BHP @ 7550rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes

Drum

Rear Brakes Drum

Front Tyre

2.75 X 18

Rear Tyre

3.00 X 18

Wheelbase 1235mm

Ground Clearance 165mm

Dry Weight 111 Kg

Tank Capacity

12.25 Litres

LML Freedom Prima 125 Disc Brake Motorcycle

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

124.88cc

Max. Power 10.7 BHP @ 8000rpm

Gear Box

5 Speed

Ignition

CDI

Front Brakes

Disc

Rear Brakes 130mm Drum

Front Tyre

2.75 X 18

Rear Tyre

3.00 X 18

Wheelbase 1235mm

Ground Clearance 165mm

Dry Weight 111 Kg

Tank Capacity

Colours

12.25 Litres

Black, Silver

LML Graptor Kick Start Motorcycle

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

150.8cc

Max. Power 13.5 BHP @ 8000rpm

Gear Box

5 Speed

Ignition

CDI

Front Brakes

Disc

Rear Brakes 130mm Drum

Front Tyre

2.75 X 18

Rear Tyre

3.00 X 18

Wheelbase 1280mm

Ground Clearance 170mm

Dry Weight 136 Kg

Tank Capacity

Colours

17 Litres

Black, Maroon, Silver, Blue

d. TVS Motor Company

TVS Suzuki became the first Indian company to introduce 100 cc IndoJapanese
motorcycles in collaboration with Suzuki Motor Company. Having amicably parted ways
TVS Motor Company continues to manufacture highly reliable mopeds, motorcycles &
scooters. TVS have one of the most comprehensive lineups of motorcycles. The 2
Stroke Max 100 range provide the entry level. The new TVS Centra and the latest TVS
Victor GLX 125 both use the new VTi (Variable Timing Ignition) to good effect.

The Indian two wheeler market has a size of over Rs100,000 million with the sales of more than
3.7 million units in 200001 and has been growing at 7% CAGR over 19972001. TVS Suzuki Ltd
(TSL) is one of the three companies that account for more than 80% of the industry. The
company has 23% market share in domestic twowheeler industry. TSL is present in all the three
leading segments of the 2wheeler market viz mopeds, motorcycles and scooters. The company
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)
market with a market share of 34%. In FY01, motorcycle sales contributed to 53% followed by
sales in mopeds to 24% of total sales of Rs 18,408.2mn. TSLs first 4stroke premium segment
motorcycle Suzuki Fiero has achieved about 3% market share within the first year of its launch.
Most recently the 19yr old JV with Suzuki Motor Corporation (SMC) has fallen off and TVS has
been renamed as TVS Motor Company Ltd.

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, motorcycles and mopeds some categories introduced in the market are a
combination of two or more segments e.g. scooterettes and stepthrus. The market primarily
comprises five 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% subsidiaries in India, a few JVs have fallen out.

In the last four to five years, the twowheeler market has witnessed a marked shift towards
motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier
bikes to withstand the bad road conditions. In the process the share of motorcycle segment has

grown from 48% to 58% , the share of scooters declined drastically from 33% to 25% , while
that of mopeds declined by 2% from 19% to 17% during the year 200001. The Euro emission
norms effective from April 2000 led to the existing players in the two stroke segment to install
catalytic converters. 4stroke motorcycles are now replacing all new vehicles. Reduced excise
duty and fierce competition has led to a fall in prices of certain models.

TSL has been the largest manufacturer of mopeds, which are predominantly prevalent as a
means of low cost transportation and provide a tremendous potential in all the parts of India.
However the company is likely to face threat from domestic competitors viz Bajaj Auto Ltd
(BAL) which would continue its pricebased competition and Honda Motorcycles and
Scooters Ltd (HMSL) a new entrant in the 2wheeler market. Since the twowheeler industry
has grown vigorously in the past, there has been excess capacity and cost pressures will
lead to reduce margins. The removal of quantitative restrictions has also led to a threat from
the Chinese players. In addition to this there has been a decline in the demand for mopeds,
which is matter of concern for the company. Consequently, the company has been planning
to launch a range of 4stroke vehicles covering all 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 Suzuki contribution.

Current Scenario

TVS Suzuki s motorcycle volume growth at around 1.3% is way behind that of its competitors
such as Hero Honda (37.28 %) and Bajaj Auto (34.5 %). The company for the first half of FY02
posted a drop in turnover by 8% to Rs8332.8mn. Operating profit margin has declined to 7.39%
from 9.53% and has been affected on account of disproportionate increase in raw material cost
in relation to the turnover. Increase in staff costs to Rs364.2mn from Rs312.3mn accompanied
by marginal increase in depreciation and interest costs has affected the companys bottom line.
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 volumes of Victor and the steady off take of Fiero have helped the company stage some
sort of recovery during the second quarter.

Different models of TVS 4strokes bikes:

TVS Centra

Engine
4 Stroke, Single Cylinder, Air Cooled
Cubic Capacity
99.8cc
Max. Power
7.5 BHP @ 7500rpm
Gear Box
4 Speed, constant mesh
Ignition
CDI
Front Brakes
110mm
Rear Brakes
110mm
Front Tyre
2.75 X 18
Rear Tyre

2.75 X 18
Wheelbase
1235mm
Ground Clearance
150mm
Dry Weight
109 Kg
Tank Capacity
11 Litres
Colours
Black, Blue, Red

TVS Fiero

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

147.5cc

Max. Power 12 BHP @ 7000 rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes

240mm Disc

Rear Brakes 130mm Drum

Front Tyre

2.75 X 18

Rear Tyre

90/90 X 18

Wheelbase 1270mm

Ground Clearance 155mm

Dry Weight 124 Kg

Tank Capacity

Colours

13 Litres

Black, Blue, Red, Silver

TVS Victor

The TVS Victor offers amongst the best value for money in the Indian twowheeler industry.

Its 110cc engine, 4 stroke engine develops 8.1 BHP and, thanks to its digital ignition,
can be optimised for power or fuel economy depending on your riding style.

Its multireflector headlamps provide better illumination for safer riding while its long
broad seat offers great comfort both for the pillion and the rider.

e.

YAMAHA MOTOR INDIA PVT. LTD.

Yamaha

Motor India Private (YMIPL) Ltd. is the fully

owned subsidiary of Yamaha Motor Co of Japan. YMIPL was initially known as Yamaha
Motor Escorts Ltd. But the parent company, Yamaha Motor Company, purchased
Escorts Ltd's remaining 26 per cent holding in their motorcycle joint venture Yamaha
Motor Escorts Ltd in June 2001. It was therefore renamed as Yamaha Motor India
Private Ltd.

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 benefit from the skills and technology used by Yamaha worldwide.

Now, the company being 100% subsidiary holder is known as the Yamaha Motor India
(Pvt.) Limited. The logo of YMC has been adopted by YMIPL.

Plans after Merger

To fulfill customer satisfaction, and meet the needs of the Indian market, YMI plans to
produce one or more models in the first year, four models in three years. To achieve
these goals, 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 internal working system.
YMIPL's motto is 'Speed, Quality, Yamaha's original design'. Yamaha is aiming to make
a significant contribution to Indian society and create products that the people of India
will take to their hearts.
Ever since its founding as a motorcycle manufacturer on 1st July, 1955, Yamaha Motor Company
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, engine and FRP technology were used as a base to actively diversify and globalize
the area of business. Today our fields of influence extend from the land to the sea and even
into the skies as our business divisions have grown Motorcycles operations to include
Marine operations, Power Product operations, Automotive operations, Intelligent Machinery
operations, Aeronautic operations and PAS operations.

Different models of Yamaha 4strokes bikes:

Yamaha Crux

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

105.6cc

Max. Power 7.6 BHP @ 7500rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes

130mm Drum

Rear Brakes 130mm Drum

Front Tyre

2.50 X 18

Rear Tyre

2.75 X 18

Wheelbase 1247mm

Ground Clearance 145mm

Dry Weight 105.5 Kg

Tank Capacity

Colours

11 Litres

Black, Blue & Red

Yamaha Enticer Electric Start Disc Brake

Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

123.7cc

Max. Power 10.99 BHP @ 8000rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes

Disc

Rear Brakes 130mm Drum

Front Tyre

2.75 X 18

Rear Tyre

120/80 X 16

Wheelbase 1375mm

Ground Clearance 140mm

Dry Weight 116 Kg

Tank Capacity

Colours

13 Litres

Lavender, Gold, Red

Yamaha Libero

Engine 4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity

106cc

Max. Power 7.6 BHP @ 7500rpm

Gear Box

4 Speed

Ignition

CDI

Front Brakes 130mm Drum

Rear Brakes 130mm Drum

Front Tyre

2.75 X 18

Rear Tyre

3.00 X 18

Wheelbase 1290mm

Ground Clearance 173mm

Dry Weight

109 Kg

Tank Capacity

Colours

13 Litres

Black, Maroon, Gold, Green

MARKETING
STRATEGIES

4.

MARKETING STRATEGIES OF HERO HONDA

PRODUCT RELATED STRATEGIES OF HERO HONDA

Product Range and New Models:

The Company's product range includes "Splendor" which is the largest selling motorcycle brand
in the world with over 6.9 lacs vehicles sold in 200001. A cumulative over 4 million customers
are the real foundation of the company's strength. The total shall soon cross the 5 million mark.
Its volumes have been growing at a strong pace of 40% p.a. over the last five years.

The Company launched a new 100 cc model "Passion" in January 2001. The
motorcycle is focused on style and contemporary design, compared to the Company's
earlier motorcycles that were focused on utility and/or style. "Passion" has received an
excellent response from the market and has established itself well, with sales reaching
a level of 19000 units in March 2001, within just three months of its launch.

In April 2001, another 100 cc model "Joy" was launched successfully. Its focus is on
better styling and improved riding comfort.

Hero Honda launches cheapest bike to stall Bajaj Auto19.03 IST 16th Apr 2003 By
India Express Bureau

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, would carry a showroom price of Rs 31,899 in Delhi. The company expects to sell
7,000 8,000 units of the bike in April and hopes sales will touch 20, 000 a month in six
months. Hero Honda, which accounts for 45 per cent share of the domestic market, has
faced slowing demand and cutthroat competition after two consecutive years of 30 per centplus growth in the world's biggest motorcycle market. But the firm has forecast at least 10
per cent growth in sales volume in the current financial year to March 2004. Its sales in the
past year to March grew 17.7 per cent to 1.68 million bikes.

Different models of Hero Honda 4strokes bikes:

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

4Stroke OHC, Single Cylinder, Air Cooled

Bore X Stroke

50 X 49.5 mm

Displacement

97.2 cc

Compression Ratio

8.8 : 1

Max Power 5.44 Kw (7.4 PS) @ 8000rpm

Torque

0.79 Kgm @ 5000 rpm

Clutch

Multi Plate Wet Type

Transmission

4Speed Constant Mesh

Final Drive Roller Chain

Ignition

Capacitor Discharge Ignition

Starting

Kick Start

Frame

Tubular Double Cradle

Suspension Front: Telescopic Hydraulic Fork

Rear: Swing Arm with Hydraulic Shock Absorbers

Dimensions (LXWXH)

1970 X 720 X 1045 mm

Wheel Base 1230 mm

Ground Clearance 159 mm

Kerb Weight 108 Kg

Tyres Front: 2.75 X 18 4PR

Rear: 2.75 X 18 6PR

Brakes

Front: Internal Expanding Shoe Type 130 mm Dia

Rear: Internal Expanding Shoe Type 110 mm Dia

Fuel Tank Capacity

10.5 Ltrs

Head Light Rectangular Multi Focal Reflector 35

The world's bestselling motorcycle just got better. The Splendor+, a bike that will stop you right in
your tracks. Both by its looks and performance. Needless to add, owning a Splendor+ means a lot of
other things too. Like getting admiring looks. Or the pride of riding a motorcycle that meets the
pollution control standards of this decade. That's the Splendor+. The new face of trust.

Engine

4stroke, single cylinder laircooled, OHC

Displacement

97.2.cc

Transmission

4speed constant mesh

Ignition

Electronic

Head light

12V 35/35W multireflector with halogen lamp

Frame

Tubular double cradle type

Suspension (front) Telescopic hydraulic fork

Suspension (rear) Hydraulic spring loaded type with both side

action

Wheelbase 1230 mm

Ground clearance 159 mm

Kerb weight 109 kgs

Tyre (front) 2.75*184 PR

Tyre (rear)

2.75*186 PR

Type of brake (front)

Optional

Drum type (130 mm diameter)

Disc type (240 mm diameter)

Type of brake (rear)

Drum type (110mm diameter)

Max power 7.5PS @ 8000 rpm / 5.5 KW @ 8000rpm

Max speed 85 kmph

Fuel tank capacity 10.5 litres (reserve 1.4 litres)

Engine
4Stroke OHC, Single Cylinder, Air Cooled
Bore X Stroke
52.4 X 57.8 mm
Displacement
124.7 cc
Compression Ratio
9.1: 1
Max Power
6.72 Kw (9 BHP) @ 7000 rpm
Torque
10.35 Nm @ 4000 rpm
Max Speed
90 Kmph
Clutch

4 Speed Constant Mesh

Final Drive
Roller Chain
Ignition
Digital CDI Ignition (AMI)

Advanced Micro Processor Ignition system

Starting
Kick Start

Self Start (Optional)

Frame
Tubular Double Cradle
Suspension
Front : Telescopic Hydraulic Fork

Rear : Swing Arm with Hydraulic Shock Absorbers

Dimensions (LXWXH)
1995 X 735 X 1095 mm
Wheel Base
1265 mm
Ground Clearance
150 mm
Kerb Weight
117 Kg (Kick Version)

121 Kg (Self Version)

Tyres
Front : 2.75 X 18 4 PR / 42P

Rear : 2.75 X 18 6 PR / 48P

Brakes
Front Drum Type : Internal Expanding Type 130 mm Dia

Front Disc Type : Hydraulic Disc Type 215 mm Dia

(Optional

Rear: Internal Expanding Type 130 mm Dia

Fuel Tank Capacity

12 Ltrs. (Min)
Head Light
12V 35W Multi Reflector Halogen Bulb AC Type

New twotone body colours PLUS Body colour rear view mirrors PLUS Aluminum die
cast rear grip PLUS Heat protector on the muffler. All this and much more to make the
biker and his bike stay married for eve.

Engine

4stroke, Single Cylinder, Air Cooled OHC

Displacement

97.2 cc

Maximum Power 7.5 Ps at 8000 rpm

Gear Box

4 Speed Constant Mesh

Clutch

MultiPlate Wet Type

Max. Speed

85 Kmph.

Frame

Tubular Double Cradle

Suspension (Front) Telescopic Hydraulic Fork

Suspension (Rear ) Swing Arm with 5 step adjustable hydraulic damper.

Tyre Size (Front ) 2.75 * 18 4 PR /42 P

Tyre Size (Rear ) 3.00*184/6 PR

Brakes (Front) Internal Expanding Shoes Type

(130mm)/ Hydraulic Disc Type (Optional)

Brakes (Rear)

Final Drive

Internal Expanding Shoes Type (130 mm)

Roller Chain

Battery

12 V2.5 Ah

Ignition

Electronic CDI

Starting

Kick Starter

Wheelbase 1235 mm

Ground Clearance 160mm

Length

1980 mm

Width 720 mm

Height

Kerb Weight

1060 mm

116 kgs.

Fuel Tank Capacity 12.8 litres (Reserve 1.1 litres)

Head light

Halogen Bulb 35 W / 35 W

Karizima

The Karizima features a 223cc, 17PS power pack that accelerates you from 060 in 3.8
seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it
races away from the pack.
Digital ignition and a constant vacuum carburetor facilitate better control of ignition timing.

The legend refreshedwith all new body language. The original spirit of CBZ, now with
a cool, new look. A wonder bike that can take on the winds. And like you, it runs on
passion. Rev up and flaunt your style.

CBZ

Engine

4stroke, single cylinder , air cooled, OHC

Displacement

156.8cc

Clutch Type Manual

Clutch Primary

Clutch Secondary

Transmission

Multiplate wet

5speed constant mesh

Final Drive Roller chain

Ignition

Electronic

Starting

Kick starter

Frame

Tubular single cradle

Suspension (Front )

Telescopic hydraulic fork

Suspension (Rear )

Swing arm with hydraulic damper 5step adjustment

Dimensions (L*W*H) 2100*755*1130mm

Wheel Base 1335mm

Ground Clearance

160mm

Kerb Weight 138 kg

Tyres:Front/Rear

2.75*1842P/100/90*1856P

Fuel Tank Capacity

12.5 1tr(2.5 ltr reserve)

b. PLACE STRATEGY OF HERO HONDA

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record
worldwide. Hero Honda is at present the largestselling Indian motorcycle and the most fuel
efficient in its category the outcome of Hero Group's foresight and another classic example of
how the Group strives to provide the customer with excellence and satisfaction.

Hero Honda became the first company in the country to introduce fourstroke
motorcycles and set the standards for fuel efficiency, pollution control and quality. It has
a production capacity of 1.2 million motorcycles, which shall be enhanced to 1.5 million
motorcycles in the coming years. It has an excellent distribution and service network
spread throughout the country. Hero Honda is the market leader in motorcycles, with
sales of over a million motorcycles and a strong market share of 47% during 200001.

This is proved by the company's sales over the years:

YEAR

SALES

200203

43,000 units

200304

96,200 units

200405

5,30,600 units

200506

7,61,210 units

200607

10,29,555 units

200708

14,25,195 units

200809

16,77,537 units

200910

18,23,234 units

As economies open up, are Asian enterprises ready for the global battle for export
markets and investment?

Hero Honda sales decline 1.2 pc

Our Bureau

NEW DELHI, May 1

HERO Honda, the country's largest motorcycle manufacturer, saw its sales decline by 1.2
per cent to 1,34,318 units in April 2003 from 1,35,961 units in the same month last year.

According to industry sources, sales of the company could have been affected by
sluggish rural demand combined with the 10day trucker's strike affecting production as
well as distribution of products in April.

The company saw a growth of 16.06 per cent in sales volume during April compared to March.

Meanwhile, Hero Honda is planning to launch new 200 plus cc motorcycle during May, a
company release said.

The company today announced that it has achieved a milestone with its Daruhera plant,
in Haryana, becoming the first Indian twowheeler plant to produce 5 million units. The 5
millionth motorcycle was a Splendor. The first motorcycle, CD100, had rolled off the
assembly line in April 1985.

Customer satisfaction, a high quality product, the strength of Honda technology and the
Hero group's dynamism have helped HHML scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We
will continue to make every effort required for the development of the motorcycle
industry, through new product development, technological innovation, investment in
equipment and facilities and through and through efficient management."

c. PRICING STRATEGY OF HERO HONDA

A rich background of manufacturing high value, reasonably priced products an

uncompromising pursuit of the goals to attain quality along with customer satisfaction
the resulting affinity in working cultures brought the world's largest manufacturer of
motorcycles in collaboration with the world's largest bicycle manufacturer, bringing forth
a market leader. Honda Motor Company of Japan and the Hero Group entered a joint
venture to setup Hero Honda Motors Limited in 1984.

The Karizima features a 223cc, 17PS power pack that accelerates you from 060 in 3.8
seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it
races away from the pack.
Digital ignition and a constant vacuum carburetor facilitate better control of ignition timing

Thats why Priced at Rs. 76,206/ on road Mumbai the Karizma is available in seven
attractive shades.

If we take the example of Karizma (A bike of Hero Honda).

d. PROMOTION STRATEGY OF HERO HONDA

A thorough understanding of the fastchanging consumer behavior, new market

segments and product opportunities along with sensitivity to changing customer needs,
form the core of Hero's marketing strategy and philosophy.

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
holders for motorcycles, ensures convenient access to the Group's products across the country.

With a deep sense of belonging to the Hero fraternity, the Group's dealer network has
catalyzed growth and acted as a strong bridge between the customers and the Group.

Conventionally, very few Indian bicycle manufacturers were interested in exports.

However, the Hero Group's foray into the overseas markets pioneered Indian exports in
the bicycle segment as early as 1963. It was a move prompted primarily by the need to
be attuned to the global marketplace.

While initial exports were restricted to Africa and the Middle East, today more than 50
percent of the Group's bicycle exports meet the demands of sophisticated markets in
Europe and America. This is primarily because of appropriate product development and
excellent quality that Hero offers.

The Group has undertaken a steady up gradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent international standards.

At the core of it all is a customercentric scheme of policies and production ... and the
bottom line is to "Add Value while Engineering Satisfaction.

Advertisement strategy

Hero Honda has snagged the brat pack Virender Sehwag, Mohammad Kaif, Yuvraj Singh and
Zaheer Khan. The twowheeler maker, an official sponsor of the World Cup tournament to be

played in South Africa in February, has brought the young and exciting cricketers of the
Indian team on board as brand ambassadors.

The Fab Four along with team captain Sourav Ganguly will feature in the ads for
its latest motorcycle model: the Ambition. Hero Honda is extremely cagey about saying
how much they had to fork out to bring the top cricketers to feature in the ads.

Atul Sobti, senior vicepresident, marketing and sales declined to say how much they planned to
invest in the ad campaign. "It will give a lot of leverage to the new product Ambition by giving the
image of a powerful and efficient motorcycle. The powerfuel bike will be well represented by the
leadership qualities, power and the capacity to face any challenges," he added.

The current ad for Ambition is tame it shows an important file reaching a destination in
time because of the power of the motorcycle. "It does not properly appeal to the
customers about the power and efficiency of the product. 'Team Ambition' will be much
better suited to represent the product," sources said.

Hero Honda is hoping to crank up sales of Ambition because of the endorsements by

the top cricketers during the World Cup when cricket fever will be at its highest.

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 International Cricket Council (ICC) has worked into the players contracts.

The issue had sparked a row when it was raised just before the ICC champions trophy
in Sri Lanka in September but was resolved after a standoff between ICC, the cricket
boards of several nations and the players.

Hero Honda plans to increase its marketshare to 50 per cent this fiscal and is targeting
sales of 10,000 Ambitions a month. Its share dipped from 48 per cent to 45 per cent.

The 133 cc Ambition generates 11 bhp of thrust, which has been kept low in order to improve
fuel efficiency. It has been placed in between the 125cc and 150cc motorcycle categories to
draw the maximum clientele. The bike accelerates from 060 kmph in only six seconds.

While launching the new campaign with the cricketers, Hero Honda is also drawing up
plans for a couple of ads with the other brand ambassador, Hrithik Roshan.

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 same status for the ICC World Cup in 2003.

6. PURPOSE OF THE STUDY

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 globalization the situation has completely changed as the many industries are sizzling hot
with continuous poaching of scooters by motorcycles as well as regular launching of new
models of motor bikes. Earlier the shelf life of models was in tune of 1015 years but now it
has come down drastically due to intense competition in motor bike industry. Hero Honda is
trying to save its dominance in motorbike market from rigorous attacks of Bajaj Auto and
TVS while Bajaj Auto is changing its portfolio by heavy inclusion of motorcycles in it. In this
battle LML Group, Kinetic Group, Yamaha Motors, Honda Motors and Royal Enfield are also
trying to provide something new to the customers.

7. RESEARCH OBJECTIVES

To study the position of 4strokes bikes in India

To forecast the consumers requirements and to study the consumers preference by

collecting the data through questionnaire
To determine the consumers buying attitudes towards the 4strokes bikes

To determine the satisfaction level of consumer to the product features and various
aspects to the 4strokes bikes
To determine the usage of the product To trace the customer profile

LITERATURE REVIEW
8.

LITERATURE REVIEW
Motorcycles are the most expensive of all twowheelers. They are more powerful than scooters
and mopeds, have the highest load carrying capacity (which is essential for rural areas), are
fuel efficient, have better road grip, and are the most expensive. Besides, motorcycles are
viewed as trendy in the urban areas as compared with scooters and mopeds.

Motorcycle production in India began in 1952, when Enfield India Limited commenced
manufacture at its plant in Tamil Nadu. It was the only motorcycle producer in the country
until the early 1960s when Ideal Jawa (India) Private Limited and Escorts Limited entered
the market. By 197071, production of motorcycles had reached 39,000 units per annum.

The fortunes of the motorcycle industry changed after the announcement of the liberal
licensing policy in 1982 whereby foreign collaboration was allowed. In 1982, the
Government allowed foreign players to enter the industry through joint ventures. Within four
years, the TVS Group 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 upper income group consumers who preferred a stylish, powerful
vehicle that could be used as an urban personal transportation vehicle. The principal brands
that competed in the 1980s were the HHML CD100 (a fourstroke 100cc), the IndSuzuki
AX100 (from TVS, twostroke, 100cc) and the Escorts

Yamaha RX100 (twostroke, 100cc). While the CD100 was positioned primarily on the efficiency
plank, giving riders an unprecedented mileage of 80 kms per litre (kmpl), the RX100 became popular
with young buyers because of its high power. The AX100 took the middle path, 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 vehicle that soon gained cult status. It
offered 36bhp, but was plagued by problemsvery few mechanics could tune the engine and the
average fuel consumption was as low as 15 kmpl. Subsequently, the product had to be discontinued.
The launch of the 100cc motorcycles was path

breaking, as till then the existing big models like the Yezdi, Rajdoot and Bullet could not
compete with scooters.

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 April 1,
2000, the less polluting fourstroke has become the preferred technology. The twostroke
technology can also meet the existing environment norms, but only when supplemented by
catalytic convertersan option that is both costly and shortsighted. The high temperature of the
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 since
CY2001 when players introduced new products at a relatively fast pace. Also, new entrants
have entered the market by introducing their products at lower price points, while the existing
players have announced price cuts. This has led to price competition in the domestic market. At
the lower end of the segment, Bajaj Auto has its Boxer range of motorcycles and Byk HHML
has Dawn as well as CD Dawn and KEL Boss. Above this segment, there are strong brands
such as Victor (TVS), Passion and Splendor (HHML), Caliber 115 and Aspire (Bajaj Auto),
Freedom, Adreno and Energy (LML), and Crux R (Yamaha). Through its CBZ model, HHML had
tapped the premium segment of the market in 1999.

Since then, however, quite a few models such as Pulsar 180 by Bajaj Auto and Fiero by
TVS have been launched in this segment. Royal Enfield is the market leader in the
lifestyle segment. This segment has also attracted new model launches such as
Eliminator by Bajaj Auto, Aquila by KEL and Karizma by HHML.

NEED FOR FOURSTROKES BIKES

Growth of Bikes

Significant growth has been witnessed in the motor cycle segment and the company is fully
aware of the need to enter in this segment for maintaining growth and optimizing product mix the
growth in motor cycle is attributed largely to the opening up the rural markets and also to its wider
acceptance in the youth market. It is growing at any average rates of 20% over the last three
years. Another high legal is that the motorcycle sales have surpassed the scooter sales for the
first time in 19981999 until then motorcycle was always trailing behind.

The twowheeler industry has been rather slow in taking advantages of the board
bandings introduced in Rajeev Gandhi time way back in 1994.
Even today, there are manufactures such as Escort, Hero Honda, Bajaj, Yamaha and LML, which later
to only a single segment like motorcycle or scooter. Any variation of demand in a particular segment
hits them hands it is therefore a product policy to have presence in each segment.

Growth of twowheeler

20082009
20092010
GROWTH %

BIKE
2.95
3.81
+29
SCOOTER
3.32
2.95
11
MOPEDS
1.54
1.58
+2.8
TOTAL IN LACS
7.9
8.35
+16.8
SOURCE: Survey of Indian industries in Jan. 2005

Emission Norms

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

GRAMES /K.M.
CO
HC+NOX
2009
4.5
3.6
2010
2.0
1.5

The industry need to adopt suitable technology so that it can conveniently meet these horns
in time since the production largely of two stroke engines figment of catalytic converter will
become necessary. But it will lead some in case in prices. The life of these converter is
limited to 25/30 thousand hence consumer will prefer something durable and longer lasting.

Some manufacture is therefore planning to switch over to stroke technology to comply with
the emission norms. It has an additional advantage of more complete combustion of
hydrocarbons in petrol, which gives higher mileage and better fuel economy. The 4 strokes

bike are currently giving of fuel 70 to 80 km/hr. this will important from consumers point of
view because of high price level of petrol in India. It is therefore not surprising that every
major player is trying to get into the motor cycle market to have a piece of cake.

Amazing but true!

Just when the market of scooter is shrinking in India residents London seem to be switching
to scooter. The number of scooter on Britons road rise 40 %over the part 12 months. As
roads get alleged with traffic and average speed of traffic is London has dropped to 19.2
km/hr more and more people are buying scooter to get around traffic shares.

Motorcycle association has released figures acknowledging the new popularity of 4strokes bikes.

RESEARCH
METHODOLOGY

9. RESEARCH METHODOLOGY

Meaning of Research

Research is a common parlance refers to a search for knowledge. One can also define research
as a scientific and systematic search for pertient information on a specific topic. In fact, research
is an art of scientific investigation. The Advance Learners Dictionary of current English lays
down the meaning of research as A careful investigation or inquiry specially through search for
new facts in any branch of knowledge. Redman and Mory defines research as a Systematized
efforts to gain new knowledge. Some people consider research as a movement, a movement to
from the known to unknown. It is actually a voyage of discovery. We possess the vital instinct of
inquisitiveness for, when the unknown confronts us, we wonder and our Inquisitiveness make us
probe and attain full and fuller understanding of the unknown.

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.

RESEARCH DESIGN

The research design is the determination and statement of general research approach of strategy
adopted for the particular product. It is the heart of the planning which the design adheres to the
research objected which will ensure that the needs will be served. My study is based on Descriptive
Research as it is invested to produce accurate descriptive of various relevant to the decision faced
without demonstrating that some relationship exist within variable. It is used to measure the behavior
variables of people of subject who are under the study.

The research undertaken was descriptive research in nature. The emphasis was made
to understand the nature and the expectations of the customers.

SAMPLE

SAMPLING TECHNIQUES

The type of sampling that was carried out was probability (convenience) Sampling due
to limited resources available.

In nonprobability sampling, I have chosen RANDOM sampling. Because this was best
sampling method to do market survey. On the other aspect, to cover all consumers in
Ghaziabad was easy task.

SAMPLE SIZE

The total number of these selected persons is called sample size. In this case, study
sample units are Two Hundred Eighty Two.

SAMPLE AREA: Ghaziabad

(Raj Nagar, Rajendra Nagar, Nehru Nagar, G.T. Road)

DATA COLLECTION METHOD

COLLECTING THE DATA

Primary data Secondary data

Primary data:

Through survey researcher obtains primary data directly from the Reader through
following method.
Observation method. Interview method. Questionnaires.

Observation method:

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 researcher found most of the customer was empty buying behavior.

Interview Method:

Researcher went to the service center and parking places and collects the data through
personal interview.

SURVEY INSTRUMENTS

Researchs instrument is questionnaires for collecting the primary data. This is very
common and flexible instrument.

Through Questionnaires:

Researcher collects most of the data through questionnaires researcher went to the
consumers and requested them to fill the questionnaires.

Secondary data:

Through Company Profile Through Newspapers

Times of India Hindustan Times The Hindu

Economics Times

Through Magazines

Business India Auto Express Business India Auto India

Through T.V. Channel

CNBC Awaz

LIMITATIONS

Small Sample size:

In my survey, I have taken a sample size of 282 customers, but only with these samples
I cant make a proper conclusion.

Time Constraint:

Time for this project is not sufficient. As I go for the survey at the dealership then time
for completing and filling the questionnaires is not sufficient.

Sample Area:

The study was conducted in GHAZIABAD only. Hence, the study may not be useful for
projection of behavioral aspect of consumers living in other cities.

Money Constraint:

Budget and finance are always been constraints in doing any project.

DATA ANALYSIS AND

INTERPRETATION

10.DATA ANALYSIS AND INTERPRETATIONS

PURCHASE OF 2STROKE AND 4STROKE BIKES:

Bikes
No. of Consumers
% age
2strokes
76
27%

4strokes
206
73%

TOTAL
282

2strokes,27%

4strokes,73%

2strokes

4strokes

INTERPRETATION:

Most of the consumers i.e. 73% want to purchase a 4strokes bike. Whereas, 27% consumers
want to purchase a 2strokes bike.

INFLUENCING FACTORS:

Factors
No. of consumers
%age
Advertisement
70
25
Sales Team
50
18
Friends
110
39
Family
52
18
TOTAL
282

18
18
RE
SP
ON
DE
NT
S

45

40

39

15

10

35

30

25
25

Advertisement
Sales

Team
Friends

20

Family

INTERPRETATION:

Most of the consumers i.e. 39% are influenced by the friends.

25% consumers out of 282 respondents are influenced by advertisement. 18% consumers out of
282 respondents are influenced by the family.

Whereas, rest of the consumers i.e. 18% are influenced by sales team while making
the

purchase decision.

RESPONSE OF THE CONSUMERS REGADING MODELS AND

COLOURS:

Company
No. of models & colours
%age
Hero Honda
40
14%
Bajaj
140
50%
LML
40
14%
TVS
30
11%
Yamaha
32
11%
TOTAL
282

N
O.
OF
RE
SP
O
N
DE
NT
S

8
0

7
0

7
0

6
0

50

40

20

3
0

20

2
0

1
5
1
6

1
0

HE
RO
HO
ND
A
BA
JA
J

LM
L
TV
S

YA
MA
HA

INTERPRETATION:

Most of the consumers i.e. 50% like colours and models of Bajaj motorcycles. Whereas, equal 14%
consumers like colours and models of Hero Honda and LML

motorcycles.

Moreover, rest equal 11% consumers like colours and models of TVS and YAMAHA

motorcycles.

PREFERENCE FACTOR:

Features of bikes
No. of consumers
% age
Power
136
48%
Mileage
112
40%
Low maintenance
34
12%
Total
282

12%

48%

40%

Power
Mileage
Low Maintenance

INTERPRETATION:

40 % consumers prefer mileage in their bike. 48 % consumers prefer power in their bike.

12 % consumers prefer low maintenance in their bike.

PREFERENCE OF BIKE REGARDING CC:

Prefer CC of bikes by
No. of consumers
% age
consumers

Under 100cc
0
0%
100125cc
84
30%
125150cc
144
51%
150cc & above
54
19%
Total
282

19%
30%

51%

Under 100cc
100125cc
125150cc
150cc & above

INTERPRETATION:

Most of the consumers i.e. 51% like to purchase the bike in between 125 cc and 150 cc.
And 30% of consumers like to purchase the bike in between 100 cc and 125 cc.

Whereas, rest 19% of consumers like to purchase the bike in 150 cc and above.

FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR:

Factors
No. of
%age

Respondents

Price
22
8%
Average
36
13%
Looks
90
31%
Brand Image
22
8%
Power
20
7%
Pick up
56
20%

Low Maintenance
20
7%
After Sales Service
16
8%
Total
282

45

RE
SP
O
N
D
A
NT
S

50

40

45

35

28

25

30

15

20
11

18

11
10

10

10

Price

Average
Looks
Brand Image
Power
Pick up
Low Maintenance
After Sales Service

INTERPRETATION:

31% consumers out of 282 are influenced by Looks Factors (Most

Influencing Factor). 20% consumers out of 282 are influenced by pick up
factor.
13% consumers out of 282 are influenced by mileage.

COMPARATIVE ANALYSIS:

Brand Name
No. of consumers
%age
Yamaha
20
7
Hero Honda
116
41
Bajaj
76
27
TVS
36
13
LML
20
7
Others
14
5
TOTAL
282

35

30

25

20
C
O
NS
U
M
ER
S
(in
%)

15

10

45

40

YamahaHero Honda

Bajaj

TVS

LML

Others

INTERPRETATION:

41% respondents out of 282 consumers like to purchase Hero Honda (Surva Guna
Smpana). 27% respondents out of 282 consumers like to purchase Bajaj.
13% respondents out of 282 consumers like to purchase TVS.

7 7 % respondents out of 282 consumers like to purchase LML and YAMAHA.

POST PURCHASE ANALYSIS:

Post Purchase Behavior

No. of consumers
%age
Full Satisfied
42
14.89

Satisfied
160
56.74
Dissatisfied
80
28.37
TOTAL
282

15%

28%

57%

Full Satisfied Satisfied

Dissatisfied

INTERPRETATION:

Only 15% consumers are full satisfied with their bike.

Whereas 57% and 28% consumers are satisfied and dissatisfied with their bike respectively.

FINDINGS

FINDINGS

AMONG DIFFERENT AGE GROUP

The age group 2025 years figures out to be very much aware regarding 4strokes bikes

Warranty/Guarantee never influenced any age far the purchase availability of spare part
is considered most important
Mileage was given top priority

Gift schemes and finance option are not option is not more success to influence the people

DIFFERENT INCOME GROUP

The income group Rs. 800012000 seems to be very aware regarding 4strokes bikes market

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
consumer about the new bike
The media adopted for such purpose should be electronic as it is wildly accepted

Continuous innovation in product process and services too are recommended to get the
competitive edge
Nicely designed and fuel efficient vehicle Is must to find better prospects and widen its
market
Easily available spare parts at reasonable price backed by efficient sales as competitions

An eye on competitors policies and review of its own according to changing market
condition will help in formulation of effective strategies from time to time
The pricing TAG which BAJAJ is going to put on its bikes should not be more Rs.35,000
50,000 in any case, because it is the price which is going to determine the success of
the product

Through demonstration in rural area so that they can get specification of bike

CONCLUSIONS

CONCLUSIONS

From the analysis of the data, it can be concluded that the Bajaj and Hero Honda
motorbikes are most familiar by people.

An ideal by as suggested by responded should have the following figures:

Good looks Good mileage

Affordable price After sales services

REFERENCES AND

ANNEXURE

REFERENCES

In this project while finalizing and for analyzing quality problem in detail the following
books, magazines and websites have been referred.

Books Consulted:

Marketing Management Philip Kotler Research Methodology Kothari

Business Statistics S.P. Gupta

Magazines Consulted:

Indian Journal of Marketing IBAT Journal of Management

Journal of Indian Management & Strategy Auto Expo of India

Newspapers:

Hindustan times Times of India The Hindu

Financial Express Economics times

Websites Consulted:

www.bajajauto.com www.herohonda.com www.lml.com

www.yamaha.com www.google.com

ANNEXURE

QUESTIONNAIRE
Name
:
.
Father's Name
:
.
Age
:
.
Nationality
:
..
Address
:
.

.
Telephone Nos.
:
.

1.
Are you using the bike:

a.
Yes
b.
No
2.
Who are you using the bike

a.
2 Strokes
b.
4 Strokes

3.
Which bike do you like most

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
4.
What will you prefer

a.

Mileage
b.
Power

c.
Maintenance
d.
Price
Looking

How much CC Bike you want

a.
Under 100 CC
b.
100125 CC
c.
125150CC
d. Above 150CC
6. Maximum Mileage of given by

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS
e.
Yamaha
f.
Others
7. Attractive Price of Company

a.
Hero Honda
b.
Bajaj
c.
LML
d.
TVS
e.
Yamaha
f.
Others

8. Which company produce minimum maintenance bike

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
9. Who influence your decision most while purchasing bike

a.
Parents
b.
Friends

c.
Advertisement
d.

Other
10.
Which company provide the attractive finance facility

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
11.
Which company provide festival offers:

a.
Hero Honda

b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
12.
Which brand aware by you

a.
Hero Honda
b.
Bajaj

c.
LML
d.

TVS

e.
Yamaha
f.
Others
13.
How much money you can expend in 4 Strokes bikes

a.
30,00035,000
b.
35,000 40,000

c.
40,000 50,000
d.
above 50,000
14.
Which company provide after sales services

a.

Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
15.
Which company pricing strategies of better according to their features

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others
16.
Which company have more models & colours

a.
Hero Honda
b.
Bajaj

c.
LML
d.
TVS

e.
Yamaha
f.
Others

Consumer Signature