Project Report

On
Comparative Analysis
Of
4-Stroke Bikes
Submitted towards the fulfillment of
The Master of Business Administration (MBA)
Degree under Biju Patnaik University of Technology,
Rourkela

College
Logo
(Approved by AICTE, Govt. of India)
ACADEMIC SESSION
(YYYY-YY)

Under the guidance of:

Submitted by:

MR. ANUBHAB PATNAIK

S.Tejswarup
Roll: - 13MB29

Lecturer Finance,

VITAM

CONTENTS
A) Title page
B) Acknowledgement
C) Certificate
1) INTRODUCTION
2) INDUSTRY OVERVIEW
3) MARKETING STRATEGIES
4) LITERATURE REVIEW
5) RESEARCH METHODOLOGY
6) DATA ANALYSIS AND INTERPRETATION
7) FINDINGS
8) SUGGESTIONS
9) CONCLUSION
10) REFERENCES AND ANNEXURES

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of my project would

be incomplete without mentioning the people who made it possible with their valuable
contributions and guidance.
I acknowledge my sincere gratitude to the DGM of Jaybanas Metal Pvt Ltd .for
providing me the opportunity to undergo summer project in the organization.
I express my sincere & heartiest gratitude guide Mr. D.Pradeep Kumar,
Accountant for their valuable suggestion & guidance which have given a finite shape to
this report.
I am also thankful to the staff members of finance department for this support
and assistance, for giving some time from his busy schedule to explain to me the
intricacies of the topic and guidance me to complete my project successfully.
I express my sincere and heartiest gratitude to my internal guide, MR.
ANUBHAB PATNAIK ,VIGNAN INSTITUTE OF TECHNOLOGY AND MANAGEMENT
(VITAM), BERHAMPUR for their valuable suggestion and guidance, which have given a
finite shape to this report.
Last but not least 1 sincerely thank all my other faculty members and friends for their
enthusiastic support.

DATE:
Place:

S. Tejswarup
Regd No. 1306301022

CERTIFICATE

This is to certify that the project study titled

submitted by
S.TEJSWARUP

on fulfillment of the requirement

for the award of Degree of MBA 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 Two-wheelers 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 10-15 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
(TWO-WHEELERS AND THREE-WHEELERS)
Two-Wheelers
India is the second largest manufacturer and producer of two-wheelers in the world. It stands
next only to Japan and China in terms of the number of two-wheelers 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 two-wheeler 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 three-wheelers. 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 four-stroke bike, Jawa and the Rajdoot were two-stroke
bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts
175cc bike. The two-wheeler market was opened to foreign competition in the mid-80s.
Moreover, the then market leaders -Escorts and Enfield - were caught unaware by the onslaught
of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel-efficient
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 two-stroke and four-stroke
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 mid-eighties 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 two-wheeler 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

Three-Wheelers
India is one of the very few countries manufacturing three-wheelers in the world. It is the world's
largest manufacturer and seller of three-wheelers. 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 two-wheeler Company. Coming into existence on January 19, 1984, Hero
Honda Motors Limited gave India nothing less than a revolution on two-wheels, 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 twentyseven. 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 three-wheeler 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 non-financial 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 three-wheelers; over 40.875 units exported last year.

All products customized as per market needs .

83% growth in total exports in 2002-03.

Different models of Bajaj 4-stroke bikes:

Bajaj CT 100
Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

4 Stroke, Single Cylinder, Air Cooled

99.27cc
8.2 BHP @ 7500rpm
4 Speed
CDI
110mm Drum
110mm Drum
2.75 X 18
2.75 X 18
1225mm
0mm
109 Kg
9.3 Litres
Black, Maroon, Silver, Blue

Bajaj Discover Electricstart

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes

4 Stroke, Single Cylinder, Air Cooled

124.52cc
11.51 BHP @ 8000rpm
4 Speed
CDI
130mm Drum

Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

130mm Drum
2.75 X 17
3.00 X 17
1305mm
0mm
129 Kg
10 Litres
Black, Red, Blue

Bajaj Pulsar 150 ES DTSi

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance

4 Stroke, Single Cylinder, Air Cooled

178.6cc
16.5 BHP @ 8000rpm
5 Speed
CDI
Disc
130mm Drum
2.75 X 17
100/90 X 17
1330mm
165mm

Dry Weight
Tank Capacity
Colours

140 Kg
15 Litres
Black, Silver, Orange, Blue, Dark Grey

c. 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 de-linked. 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 re-launched 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 Rs-725 to Rs-1100.

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 year-end.
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 30-9-97
LML has achieved a remarkable turn over by earning a net profit Rs-2640 lacks as compared to
net loss of 607 during the year proved further and the company has earned a net profit of Rs-467
crores during the period ended on 30-9-97 before exceptional item has also gone up from Rs346.39 crores during 1993-94 to Rs-748.72 crores during 1996-97.
From a mere 7 percent, market share in 1991-1992 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 twowheeler industry and a negative growth in the scooter segment.

Different models of LML 4-strokes bikes:

LML Freedom DX
Engine

4 Stroke, Single Cylinder, Air Cooled

Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity

109.15cc
8.5 BHP @ 7550rpm
4 Speed
CDI
Drum
Drum
2.75 X 18
3.00 X 18
1235mm
165mm
111 Kg
12.25 Litres

LML Freedom Prima 125 Disc Brake Motorcycle

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre

4 Stroke, Single Cylinder, Air Cooled

124.88cc
10.7 BHP @ 8000rpm
5 Speed
CDI
Disc
130mm Drum
2.75 X 18

Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

3.00 X 18
1235mm
165mm
111 Kg
12.25 Litres
Black, Silver

LML Graptor Kick Start Motorcycle

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity

4 Stroke, Single Cylinder, Air Cooled

150.8cc
13.5 BHP @ 8000rpm
5 Speed
CDI
Disc
130mm Drum
2.75 X 18
3.00 X 18
1280mm
170mm
136 Kg
17 Litres

Colours

Black, Maroon, Silver, Blue

d. TVS Motor Company

TVS Suzuki became the first Indian company to introduce 100 cc Indo-Japanese 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 line-ups 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 VT-i (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 2000-01 and has been growing at 7% CAGR over 1997-2001. 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 two-wheeler industry. TSL is present in all the three
leading segments of the 2-wheeler 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 vario-scooter (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 4-stroke premium segment
motorcycle Suzuki Fiero has achieved about 3% market share within the first year of its launch.

Most recently the 19-yr old JV with Suzuki Motor Corporation (SMC) has fallen off and TVS
has been renamed as TVS Motor Company Ltd.
The Indian two-wheeler sector contributes the largest volumes amongst all the segments in
automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz;
scooters, motorcycles and mopeds; some categories introduced in the market are a combination
of two or more segments e.g. scooterettes and step-thrus. The market primarily comprises five
players in the two-wheeler segment with most of the companies having foreign collaborations
with well-known 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 two-wheeler 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 2000-01. The Euro emission
norms effective from April 2000 led to the existing players in the two- stroke segment to install
catalytic converters. 4-stroke 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 price-based competition and Honda Motorcycles and Scooters Ltd (HMSL) a
new entrant in the 2-wheeler market. Since the two-wheeler 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 4-stroke vehicles covering all
segments over a period of time. Of late, TVS has been able to produce 100cc 4-stroke
motorcycles indigenously and none of the companys fast selling 2-wheelers 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 01-02. 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 4-strokes bikes:

TVS Centra

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

4 Stroke, Single Cylinder, Air Cooled

99.8cc
7.5 BHP @ 7500rpm
4 Speed, constant mesh
CDI
110mm
110mm
2.75 X 18
2.75 X 18
1235mm
150mm
109 Kg
11 Litres
Black, Blue, Red

TVS Fiero

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

4 Stroke, Single Cylinder, Air Cooled

147.5cc
12 BHP @ 7000 rpm
4 Speed
CDI
240mm Disc
130mm Drum
2.75 X 18
90/90 X 18
1270mm
155mm
124 Kg
13 Litres
Black, Blue, Red, Silver

TVS Victor

The TVS Victor offers amongst the best value for money in the Indian two-wheeler 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 multi-reflector 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 1 st 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 4-strokes bikes:
Yamaha Crux
Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

4 Stroke, Single Cylinder, Air Cooled

105.6cc
7.6 BHP @ 7500rpm
4 Speed
CDI
130mm Drum
130mm Drum
2.50 X 18
2.75 X 18
1247mm
145mm
105.5 Kg
11 Litres
Black, Blue & Red

Yamaha Enticer Electric Start Disc Brake

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes

4 Stroke, Single Cylinder, Air Cooled

123.7cc
10.99 BHP @ 8000rpm
4 Speed
CDI
Disc

Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

130mm Drum
2.75 X 18
120/80 X 16
1375mm
140mm
116 Kg
13 Litres
Lavender, Gold, Red

Yamaha Libero

Engine
Cubic Capacity
Max. Power
Gear Box
Ignition
Front Brakes
Rear Brakes
Front Tyre
Rear Tyre
Wheelbase
Ground Clearance
Dry Weight
Tank Capacity
Colours

4 Stroke, Single Cylinder, Air Cooled

106cc
7.6 BHP @ 7500rpm
4 Speed
CDI
130mm Drum
130mm Drum
2.75 X 18
3.00 X 18
1290mm
173mm
109 Kg
13 Litres
Black, Maroon, Gold, Green

MARKETING STRATEGIES
4.

5. MARKETING STRATEGIES OF HERO HONDA

a. 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 2000-01. 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, CDDawn, would carry a showroom price of Rs 31,899 in Delhi. The company expects to sell 7,0008,000 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 cent-plus 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 4-strokes 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

4-Stroke 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

4-Speed 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 best-selling 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

4-stroke, single cylinder lair-cooled, OHC

Displacement

97.2.cc

Transmission

4-speed constant mesh

Ignition

Electronic

Head light

12V 35/35W multi-reflector 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*18-4 PR

Tyre (rear)

2.75*18-6 PR

Type of brake (front)

Drum type (130 mm diameter)

Optional

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
Bore X Stroke
Displacement
Compression Ratio

4-Stroke OHC, Single Cylinder, Air Cooled

52.4 X 57.8 mm
124.7 cc
9.1: 1

Max Power
Torque
Max Speed
Clutch
Final Drive
Ignition
Starting
Frame
Suspension
Dimensions (LXWXH)
Wheel Base
Ground Clearance
Kerb Weight
Tyres
Brakes

Fuel Tank Capacity

Head Light

6.72 Kw (9 BHP) @ 7000 rpm

10.35 Nm @ 4000 rpm
90 Kmph
4 - Speed Constant Mesh
Roller Chain
Digital - CDI Ignition (AMI)
Advanced Micro Processor Ignition system
Kick Start
Self Start (Optional)
Tubular Double Cradle
Front : Telescopic Hydraulic Fork
Rear : Swing Arm with Hydraulic Shock Absorbers
1995 X 735 X 1095 mm
1265 mm
150 mm
117 Kg (Kick Version)
121 Kg (Self Version)
Front : 2.75 X 18 - 4 PR / 42P
Rear : 2.75 X 18 - 6 PR / 48P
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
12 Ltrs. (Min)
12V - 35W Multi Reflector Halogen Bulb - AC Type

New two-tone 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
Displacement
Maximum Power
Gear Box
Clutch
Max. Speed
Frame
Suspension (Front)
Suspension (Rear )
Tyre Size (Front )
Tyre Size (Rear )
Brakes (Front)
Brakes (Rear)
Final Drive
Battery
Ignition
Starting
Wheelbase
Ground Clearance
Length
Width
Height
Kerb Weight
Fuel Tank Capacity
Head light

4-stroke, Single Cylinder, Air - Cooled OHC

97.2 cc
7.5 Ps at 8000 rpm
4 Speed Constant Mesh
Multi-Plate Wet Type
85 Kmph.
Tubular Double Cradle
Telescopic Hydraulic Fork
Swing Arm with 5 step adjustable hydraulic damper.
2.75 * 18- 4 PR /42 P
3.00*18-4/6 PR
Internal
Expanding
Shoes
Type
(130mm)/ Hydraulic Disc Type (Optional)
Internal Expanding Shoes Type (130 mm)
Roller Chain
12 V-2.5 Ah
Electronic CDI
Kick Starter
1235 mm
160mm
1980 mm
720 mm
1060 mm
116 kgs.
12.8 litres (Reserve 1.1 litres)
Halogen Bulb 35 W / 35 W

Karizima
The Karizima features a 223cc, 17PS power pack that accelerates you from 0-60 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

4-stroke, single cylinder , air - cooled, OHC

Displacement

156.8cc

Clutch Type

Manual

Clutch Primary

Clutch Secondary

Multi-plate wet

Transmission

5-speed 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- 5-step adjustment

Dimensions (L*W*H)

2100*755*1130mm

Wheel Base

1335mm

Ground Clearance

160mm

Kerb Weight

138 kg

Tyres:Front/Rear

2.75*18-42P/100/90*18-56P

Max. Power

12.8 PS@8000 rpm

Max.Speed

100 kmph

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 largest-selling Indian motorcycle and the most fuelefficient 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 four-stroke 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 2000-01.
This is proved by the company's sales over the years:

YEAR
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10

SALES
43,000 units
96,200 units
5,30,600 units
7,61,210 units
10,29,555 units
14,25,195 units
16,77,537 units
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 10-day 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 two-wheeler 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 0-60 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 fast-changing 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 customer-driven approach. A nation-wide 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 customer-centric 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 two-wheeler 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 vice-president, 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 powerfu-e-l 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 ambush-marketing 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 stand-off between ICC, the cricket boards of several
nations and the players.
Hero Honda plans to increase its market-share 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 0-60 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 Two-wheelers 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 10-15 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 4-strokes 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 4-strokes bikes

To determine the satisfaction level of consumer to the product features and various aspects to
the 4-strokes 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 two-wheelers. They are more powerful than scooters
and mopeds, have the highest load carrying capacity (which is essential for rural areas), are fuelefficient, 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 1970-71, 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 Ind-Suzuki in 1984, Hero
Honda Motors Limited (HHML) launched CD100 in 1985, and both Escorts and Bajaj Auto
launched their models in 1986-87. These models catered for the upwardly mobile, middle-toupper 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 four-stroke 100cc), the Ind-Suzuki AX100 (from TVS, two-stroke, 100cc)
and the EscortsYamaha RX100 (two-stroke, 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 twin-carb, twin-cylinder 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
two-stroke to four-stroke technology. The attraction of the four-stroke technology was earlier
limited to fuel efficiency, while two-stroke 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 four-stroke has become the preferred technology. The two-stroke
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 pick-up of two-stroke
engines, which is one of their main attractions. Given these shortcomings, most motorcycle
manufacturers have offered four-stroke vehicles. While the four-stroke 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 FOUR-STROKES 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 1998-1999 until then motorcycle was always trailing behind.
The two-wheeler 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 two-wheeler

BIKE
SCOOTER
MOPEDS
TOTAL IN LACS

2008-2009

2009-2010

GROWTH %

2.95
3.32
1.54
7.9

3.81
2.95
1.58
8.35

+29
-11
+2.8
+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.
2009
2010

CO
4.5
2.0

HC+NOX
3.6
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 4-strokes
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 non-probability 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 2-STROKE AND 4-STROKE BIKES:

Bikes
2-strokes

No. of Consumers
76

% age
27%

4-strokes

206

73%

TOTAL

282

4-strokes; 73%
2-strokes

4-strokes
2-strokes;
27%

INTERPRETATION:

Most of the consumers i.e. 73% want to purchase a 4-strokes bike.

Whereas, 27% consumers want to purchase a 2-strokes bike.

 INFLUENCING FACTORS:
Factors
Advertisement
Sales Team
Friends
Family
TOTAL

No. of consumers
70
50
110
52
282

%age
25
18
39
18

45
39

40
35
30
25
20
RESPONDENTS

24.82

17.83

18.45

15
10
5
0

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
Hero Honda
Bajaj
LML
TVS
Yamaha
TOTAL

No. of models & colours

40
140
40
30
32
282

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

80

70

70

60

50

HERO HONDA
NO. OF RESPONDENTS

40

BA JA J

LML

TVS

YA MA HA

30

20

10

INTERPRETATION:

20

20
15

16

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
Power
Mileage
Low maintenance
Total

No. of consumers
136
112
34
282

% age
48%
40%
12%

12%
48%
40%

Power

Mileage

INTERPRETATION:

40 % consumers prefer mileage in their bike.

48 % consumers prefer power in their bike.

12 % consumers prefer low maintenance in their bike.

Low Maintenance

 PREFERENCE OF BIKE REGARDING CC:

Prefer CC of bikes by
consumers
Under 100cc
100-125cc
125-150cc
150cc & above
Total

No. of consumers

% age

0
84
144
54
282

0%
30%
51%
19%

19%

30%

51%

Under 100cc
125-150cc

100-125cc
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
Price
Average
Looks
Brand Image
Power
Pick up
Low Maintenance

No. of
Respondents
22
36
90
22
20
56
20

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

After Sales Service

Total

16
282

8%

50
45

45
40
Price

35
Average

Looks Brand Image

30

Power

Pick up

28

RESPONDANTS 25
20

18

Low Maintenance 15
After Sales Service

11

11

10

10

10

5
0

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
Yamaha
Hero Honda
Bajaj
TVS
LML
Others
TOTAL

No. of consumers
20
116
76
36
20
14
282

%age
7
41
27
13
7
5

45
40
35
30
25
CONSUMERS (in %)

20
15
10
5
0
Yamaha Hero 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
Full Satisfied
Satisfied
Dissatisfied
TOTAL

No. of consumers
42
160
80
282

%age
14.89
56.74
28.37

15%

28%
Full Satisfied

Satisfied

57%

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 20-25 years figures out to be very much aware regarding 4-strokes 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. 8000-12000 seems to be very aware regarding 4-strokes 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
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

4. What will you prefer

a. Mileage
c. Maintenance
e. Looking

b. Power
d. Price

5. How much CC Bike you want

a. Under 100 CC
c. 125-150CC

b. 100-125 CC
d. Above 150CC

6. Maximum Mileage of given by

a. Hero Honda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

7. Attractive Price of Company

a. Hero Honda
c. LML
e. Yamaha

b. Bajaj
d. TVS
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
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

12. Which brand aware by you

a. Hero Honda
c. LML
e. Yamaha

b. Bajaj
d. TVS
f. Others

13. How much money you can expend in 4 Strokes bikes

a. 30,000-35,000
b. 35,000 - 40,000
c. 40,000 - 50,000
d. above 50,000
14. Which company provide after sales services
a. Hero Honda
c. LML
e. Yamaha

b. Bajaj
d. TVS
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