FUNDAMENTAL ANALYSIS OF

AUTOMOBILE INDUSTURY
(2 WHEELER)

A REPORT

SUBMITTED BY
GYANU PRATAP SINGH
A-53
PGPEL(2009-10)
 ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mr. Manish Khandewal for

his able guidance, continuous support and cooperation throughout my project,
without which the present work would not have been possible.

I would also like to thank to all my friends for the constant support and help in the
successful completion of my project.

Also, I am thankful to my institute for its continued guidance and invaluable

encouragement.

Gyanu Pratap Singh

A-53
PGPEL (2009- 10 BATCH)
 Topic

Industry Profile

• Industry Profile
• Segmentation of two Wheeler
• Growth prospects and key drives of Indian two
wheeler Industry
• Factor affecting Market

Players Analysis

• Bajaj Auto Ltd.

• Hero Honda Moters Ltd.
• TVS Moters
• Honda Motercycles & Scooters India Pvt. Ltd.
• Royal Enfield Moters Ltd.
• Yahama Moters Pvt. Ltd.

• Recent Launches

Future Launches

Critical Review of Literature

• Factors influencing buying behavior

• Consumer buying process
1.0 INDUSTRY PROFILE

AUTOMOBILE INDUSTRY TILL DATE

The automobile industry is one of the biggest industries in the world. Being a major
revenue and job generating sector it drives the economies of some of the superpowers
of the world. In India the automobile industry has grown by leaps and bounds since the
advent of the liberalization era the automobile industry and especially the two wheeler
segment has grown by leaps and bounds.
The liberalization has done away with primitive and prohibitive practices of licensing and
restricted foreign investment have been done away with. The result of which was the
entry of foreign players into the Indian market. The two wheeler segment was largely
dominated by Automobile Products of India (API) and Enfield in the 50s. Later on
towards the end of the 50s Bajaj Autos began importing Vespa scooters from Italian
company Piaggio. In the following decades the automobile industry in India was mainly
dominated by scooters with API and later Bajaj dominating the market. There were very
few products and choices available as far as motorcycle is concerned and Enfield bullet
and Rajdoot dominated the market.
The 80s saw the entry of Japanese companies in the Indian market with the opening up
of the market to foreign companies. Hero Honda and TVS Suzuki are companies formed
in this era of market reform. The market was still predominantly scooter dominated and
Bajaj and LML were the leading brands producing the products at that time. Scooter was
viewed as a more family and utility friendly vehicle than motorcycle and hence was
preferred.
The Japanese companies not only collaborated with Indian companies to produce the
already existing products but also brought in new technology as a result of which the
ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engines
were launched in India. These proved to be highly successful as they provided a cheap
and affordable means of personal transport to all those who could not buy a car. The
flourishing middle class took a great liking for these bikes and the bike sales in India
began to grow exponentially year on year leading to Hero Honda becoming the leader in
the two wheeler industry in India and the largest producer of two wheelers in the world.
The post 90s era was the era of liberalization and weakening of restrictive measures.
The government went on an overdrive to support the industry and all FDI regulations and
licensing was abolished. 100% FDI was allowed in the automobile industry and the
excise duty was also considerably reduced to its current level of 12% on two wheelers.
All these factors combined with the rising fuel prices, the increasing dispensable
incomes of households, easy access to finance, etc. have led to two wheeler industry
becoming the backbone of the automobile industry in India.
The two wheeler industry in India forms a major chunk of the automobiles produced in
India. According to Society of Indian Automobile Manufacturers statistics for the year
2008 – 2009, two – wheelers comprise 76.49% of market share among the vehicles
produced in India.
The production share of two wheelers is quite similar to the market share. The two
wheeler industry comprises around 74% of the total automobiles produced in India. The
SIAM data for the year 2008-09 states that 8,418,626 two wheelers were produced
during the year against a total of 11,175,479vehicles produced during the year.

SEGMENTATION OF TWO WHEELER

A Two Wheeler Sector Sub-Segmenting in the three Segments

.
1. Motorcycle

2. Scooter

3. Mopeds
 Domestic Market Share 2008 – 09
Commercial Vehicles 3.95%
Total Passenger Vehicles 15.96%
Total Two Wheelers 76.49%
Three Wheelers 3.60%

1.1.1 Domestic Market Share 2009-10

1.1 The Domestic Market Share of Two wheelers in 2009-10

PAST YEAR REPORT

In the past year the sales of the automobile segment has taken a setback and the two
wheeler segment has not proved to be any exception. The two wheeler segment has
suffered a setback of over 7% during the past fiscal year but there have been signs of
recovery in the current year.
 1.2 Comparative Analysis of Domestic Sales of Automobiles 2009-10

1.3 Sales
trend of
automobiles
for the last
several
years

Production
Trend
If we compare to the last year production of two wheelers it was around 8,026,681 out of
10,853,930 but this year we have got growth of 1.78%, this year production of two
wheelers is around 8,418,626 out of 11,175479 total automobile productions.
The export of automobiles from India has been constantly growing and with the
slowdown in the domestic market, the major companies are focusing on exporting much
more to increase their profit margins.

GROWTH PROSPECTS AND KEY DRIVERS OF INDIAN TWO WHEELER INDUSTRY

The growth witnessed by the Indian two wheeler industry indicates the growing demand
for low cost personal transportation solutions amongst the 300 million Indian middle
class consumers. Despite this spectacular growth rate, the two wheeler penetration
(number of two wheelers per 1000 inhabitants) in India remains lower than other Asian
countries. This fact provides an opportunity for continued growth in the market. India has
the lowest Penetration of two wheelers as compared to countries like Taiwan, Thailand,
Malaysia, Vietnam, Indonesia and China. In the present scenario, growth in the two
wheelers Industry will be driven by several factors
Rise in India’s Young Working Population
With the rising levels of per capita income of people, the Indian two wheeler market
offers a huge potential for Growth. This growth is relevant in the light of the fact that 70
per cent of India’s population is below the age of 35 Years and 150 million people will be
added to the working Population in the next five years. The number of women in the
urban work force is also increasing; this will lead to the Growth of gearless scooters.

Rise of India’s Rural Economy and Growth in Middle Income Households

The growth prospects of the Indian rural economy offer a significant opportunity for the
motorcycle industry in India. The penetration of motorcycles amongst rural households
with income levels greater than US$ 2,200 per annum has already increased to over 50
per cent. The current target Segment for two wheelers, i.e., households belonging to the
Income category of US$ 2,200–12,000 is expected to grow at a CAGR of 10 per cent.

Greater Affordability of Vehicles

The growth in two-wheeler sales in India has been driven by an increase in affordability
of these vehicles. An analysis of the price trends indicates that prices have more or less
stagnated in the past. This has been part of the marketing strategy adopted by the
manufacturers to gain volume, as well as conscious efforts adopted to bring down costs.
The operating expenses of leading manufacturers have declined by around 15 per cent
in the last five years. With greater avenues of financing, the customer’s capacity to own a
two wheeler has improved.

Rapid Product Introduction and Shorter Product Life Cycle

The last five years have witnessed a sharp increase in new product launches in the two-
wheeler industry. It is estimated that close to 50 new products have been launched by
manufacturers during this period, filling up all price points and targeted at various
consumer segments.

Inadequate Public Transport Systems in most Urban Areas

The economic boom witnessed in the country and the increased migration to urban
areas have increased the traffic congestion in Indian cities and worsened the existing
infrastructure bottlenecks. Inadequate urban planning has meant that transport systems
have not kept pace with the economic boom and the growing urban population. This has
increased the dependence on personal modes of transport and the two wheelers market
has benefited from this infrastructure gap.

FACTORS AFFECTING THE MARKET

Post 1991, the Indian two-wheeler industry comprising of motorcycles, scooters and
scooterettes opened up tremendously. The Indian motorcycle industry has expanded at
a 24% CAGR over the last five years, It Captured almost 80% of the market primarily at
the cost of the scooter and Moped segment. The scooter segment though has witnessed
a revival with the launch of scooterettes aimed at young women and adolescents.
The two wheeler market can be segmented into three categories on the basis of price –
Entry segment (<35000), Executive segment (between 35000 and 45000) Deluxe
(between 45000 and 65000) and Premium segment (above 65000).
Motorcycles are now sold as a passion, experience rather than a product. New products
are being introduced at a rapid pace and brands are gaining prominence. Thus there is
an increased focus on the premium segment which has an increased scope for
differentiation.

Purchasing Power is relatively high with buyers becoming more discriminating. Reliability
and economy have become more of a hygiene factor. Buyers now demand two-wheelers
that fit their personality thus increasing the scope for differentiation and branding.
Provision of financing through EMI’s has provided a means to satisfy the need of
possess a convenient and stylish mode of transport in the form of a two wheeler. This
has resulted in higher growth in the 125-150cc segment

With the introduction of Government policies such as reduction in excise duty from 16%
to 12% and allowing for 100% FDI Barriers to entry has reduced. However, the
investment required for setting up large distribution channels and service stations can be
a major entry barrier. Another significant entry barrier is the brand building required.
Thus, initially foreign players set up Joint Ventures with indigenous companies. After
establishing their brand they have launched their own line of products. E.g. Honda with
Hero Group and Yamaha with Escorts.
Threat from Substitutes such as the Tata 1 Lakh car looms large over the two-wheeler
industry. For the first time, a car has been positioned at a price point that fills the vacuum
between a motorcycle and a low-end car such as the Maruti 800. Previously, the price of
even a low end car (2.5 – 3 Lakhs) was too high to attract the customers from the entry
and executive two wheeler segment. Since brand loyalty is lower for these segments vis-
à-vis the premium segment, these segments may be threatened by the Tata car. Their
buyers will consider the convenience and status associated with owning a car, which is
reasonably priced and therefore a viable substitute.

Rising Customer Expectations

The growth witnessed by the Indian two wheeler industry has attracted a number of new
entrants to the market and it is expected that the Indian industry will become more
competitive in the future. The excess of products introduced in the past has also raised
customer expectations with respect to reliability, styling, performance and economy.
Inflation is a big factor that may play a part in moving the loyalties and aspirations of
people away from the four to the much cheaper and economical two wheeler segment.
Moreover, the constantly increasing prices of oil and increasing interest rates on finance
are not helping the cause either.
Environmental Concerns are also quite big on the agenda these days and do play a part
in the preference of consumer’s choices. The rising global temperatures along with daily
snippets in the national and international media about the thinning of ozone and
imminent environmental disaster have all contributed to the making of a present day
environmentally conscious consumer.

Environmental and Safety Concerns

The increasing demand for two wheelers will need to be managed to address issues
relating to overcrowding of roads. Another problem is the insufficient infrastructure for
inspection to ensure adherence to emission norms. As the industry grows, it is important
to regulate the sale of used two wheelers in a more organised manner for which a
mechanism needs to be evolved. Unregulated sale of two wheelers, especially in the
rural areas, are likely to create issues related to emissions and safety of vehicles.
Creation of Distribution Infrastructure
Leading companies need to ensure that on one hand they build adequate infrastructure
in terms of dealerships and servicing stations in the urban areas and on the other ensure
that their distribution infrastructure also reaches the rural areas

Current Competition has intensified thus requiring greater branding and marketing. Also
due to the presence of relatively undifferentiated products, advertising and promotions
have gained importance. The product has moved from a commodity to a branded
product. However, there is still tremendous growth potential especially in the rural
markets due to the under developed road infrastructure for which motorcycles are highly
suitable.

Segment
Three CVs
3.9% 4.03%

W heeler 13.44%

Pas
`

T he
Others, 5.8%
Yamaha, Honda
3.8% Motors, 8

TVS Motors,
17.7%

H
1.1PLAYERS OPERATING IN THE MARKET

1. Bajaj Auto Ltd.

Established in 1945 Bajaj Auto Ltd was incorporated as a trading company. Till 1959,
they imported scooters and three-wheelers from Italy and sold them in India. The
company got a production license in the year 1959 and fastened a technical
collaboration with Italian PIAGGIO in 1960.

Bajaj Auto Ltd. is one among India's top ten companies in terms of market capitalization
and among the top five in terms of annual turnover.

The company started producing scooters in the year 1961 and followed three-wheelers
production in 1962. Its collaboration with Piaggio expired in 1971 and since then, their
scooters and three-wheelers are being sold with the brand name “BAJAJ”.

Maharashtra Scooters Ltd., a Company with 24% equity participation by the Company
and 27% participation from Maharashtra State Government's Western Maharashtra
Development Corp. was formed in the year 1975 under the "Horizontal transfer of
technology" policy.

The first production unit is located at Satara, Maharashtra. The unit continues to collect
scooters from CKDs supplied by the Company. These scooters are marketed through
the Company's distribution network and under the Company's brand name.

In 1984, the second production plant was set up at Aurangabad, Maharashtra. This plant
started scooter production in 1986, three-wheeler production in 1987 and scooterettes
and motorcycle facilities were commissioned in 1990 & 1991 respectively.

Today, the company has become a market leader with annual production in excess of
1.35 million units which was about 4000 units in 1961. These days, Bajaj Auto Ltd. has
started offering products in all segments (mopeds & scooterettes, scooters, motorcycles,
three wheelers).
 TWO WHEELERS
>> MOTORCYCLE
Bajaj Avenger 180 CC
Bajaj CT 100 99.27 CC
Bajaj Discover DTSi 135 CC
Bajaj KB 125 123 CC
Bajaj Platina 99.27 CC
Bajaj Pulsar DTS-Fi 220 CC 220 CC
Bajaj Pulsar DTSi
180 CC
• Pulsar 180 DTS-i UG 150 CC
• Pulsar 150 DTS-i UG 200 CC
• Pulsar 200 Cc 220 CC

• Pulsar 220 DTS-Fi

Bajaj Wind 125 124.6 CC
Bajaj XCD 125 CC
>> SCOOTERS
Bajaj Bravo 145 CC
Bajaj Chetak 145.45 CC
Bajaj Classic SL 145.45 CC
Bajaj Legend 150 CC
>> SCOOTERETTES/MOPEDS
Bajaj Blade DTSi 100 CC
Bajaj Cagiva CRX 145 CC
Bajaj Fusion 145 CC
Bajaj Kristal DTSi 100 CC
Bajaj M 80 Electronic 74.08 CC
Bajaj Rave 74.08 CC
Bajaj Saffire 74.4 CC
Bajaj Spirit 100 CC
Bajaj Sunny 59.86 CC
Bajaj Sunny Spice 59.86 CC
Bajaj Wave DTSi 109.7 CC
 AWAITED MODELS
Sonic DTSi Motorcycle

1.1.2 Models of BAJAJ

2. Hero Honda Motors Ltd.

Hero Honda Motors Ltd. is a result of the joint venture between

India's Hero Group and Japanese Honda Motors Company in
the year 1983. This joint venture has not only created the
world's single largest two wheeler company but also one of the
most successful joint ventures worldwide. Hero Honda is
globally known of being the most fuel-efficient and the largest
CBZ selling Indian Motorcycle Company. This is a relationship so harmonious that Hero
Honda has managed to achieve indigenisation of over 95 percent, a Honda record
worldwide.
The below chart shows the golden years in the history of HERO HONDA :-

1985 CD-100
1989 SLEEK
1991 CD-100 SS
1994 Splendor
1997 Street
1999 CBZ
2001 PASSION
2002 DAWN, AMBITION
CD-DAWN, SPLENDOR +, PASSION +,
2003
KARIZMA
SUPER-SPLENDOR, CD-DELUX,
2005
GLAMOUR, ACHIEVER

1.1.3 Golden Years of HERO HONDA

The company is committed to provide the customer with excellence. A rich background
of producing high value products at reasonable prices led the world's largest
manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.
During 80s, Hero Honda became the first company in India to prove that it was possible
to drive a vehicle without polluting the roads. They company possess three
manufacturing units based at Dharuhera, Gurgaon and Haridwar are capable to produce
4.4 million units per year. They introduced new generation motorcycles that set industry
benchmarks for fuel thrift and low emission.
The unique features like fuel conservation, safety riding courses and mobile workshops
helped the group reach in the interiors of the country. Well-entrenched in the domestic
market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been
steadily on the rise.

Over the years, the Company has received its share of accolades, including the National
Productivity Council's Award (1990-91), and the Economic Times - Harvard Business
School Association of India Award, against 200 contenders. The gross sales of Hero
Honda by March end'2008 was 33, 371, 43 Crores.

TWO WHEELERS
>> MOTORCYCLES
Hero Honda Achiever Hero Honda CD Dawn Hero Honda CD Deluxe
Hero Honda CD 100 Hero Honda CD 100 SS Hero Honda Glamour
Hero Honda Splendor
Hero Honda Glamour
• Splendor +
• Glamour Hero Honda Passion Plus
• Super Splendor
• Glamour - FI
• Splendor NXG
Hero Honda Sleek Hero Honda CBZ X-TREME Hero Honda Karizma
Hero Honda Hunk
>> SCOOTERETTES/MOPEDS
Hero Honda Pleasure Hero Ankur Hero Gizmo
Hero Panther Hero Puch Automatic Hero Sakhti 3G
Hero Stepmatic Hero Street Hero Winner
Hero Stepmatic Hero Puch Automatic Hero Sakthi 3G
 Hero Winner

1.1.4 Hero Honda Models

3. Honda Motorcycles & Scooters India Private Limited

Established in 1999, the Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) is a wholly
owned subsidiary of Honda Motor Company Ltd., Japan and is located at Manesar,
Haryana. The company's most well known brand is the Honda Activa that revolutionized
the Indian scooterette market in terms of design and features. The company exports
scooters to the European Union.

HONDA MOTORCYCLES
MODEL CAPACITY
Honda Shine 125 CC
Honda Unicorn 149.1 CC
Honda Stunner CBF 125 CC
Honda CBF Stunner FI 124.7 CC

HONDA SCOOTERS
MODEL CAPACITY
Honda Eterno 147.7 CC

HONDA SCOOTERETTES/MOPEDS
MODEL CAPACITY
Honda Aviator 102 CC
Honda Activa 102 CC
Honda Dio 102 CC

4. TVS Motor
TVS Motor is a leading and trusted two wheeler company
began with the vision of TVS Scooty the founder of the
Sundaram Clayton Group, the late T.S. Srinivasan - 'to design, develop and produce an
affordable moped for the Indian family.' This vision was realized in 1980 when TVS 50,
India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern
India.

The company has been known for its ruggedness and reliability. TVS 50 was successful
and it has smoothened the way for many successes for TVS Suzuki even before its
launch in the market. The TVS 50 XL is especially designed for individuals who want
economy fused with sporty looks. Recently new XL Super with a 70 cc high-tech Power
Pack is all set to redefine the category of mopeds in the country. The Suzuki Samurai
was launched for the time conscious urban commuter. The Max 100 R was engineered
for those who demanded strength and ruggedness. Along with them all, Suzuki Shogun
was for those who wanted raw power.

TVS Motor has continually worked on innovation of the motorcycle segment along with
two wheeler range. The Suzuki Shaolin, developed by TVS Suzuki is India's first 5-
speed, 140 cc motorcycle. Another example of the company success is TVS Scooty, a
60 cc Scooterette which keep one step ahead of its time in India.

TVS Motor has been coveted 2 IT awards, one of them is bagging the SAP ACE 2008
award for Customer Excellence and the other one is 2008 Symantec South Asia
Visionary Award. Along with this, it is the first company in the world to be honored with
The Deming Prize for Total Quality Management. In September 2008, the company has
got 19% growth for registering total two wheeler sales of 137,246 units.

The company is the third largest two-wheeler manufacturer in India and ranks among the
top ten globally. The company was the first in India to launch 2-seater 50cc moped and
100cc Indo-Japanese motorcycles. At present TVS Apache, TVS Victor, TVS Scooty,
TVS Centra and TVS Fiero are the popular bikes in Indian market.

In all, team TVS has triumphed each and every race and rally in the country from the
road to racetrack, with each of the TVS bikes being a winner. And each time the 'Team
TVS' has won on the track or off it; our customers have secured a better product for their
personal transportation.
1.1.6 TVS models

TWO WHEELERS
>> MOTORCYCLES
Suzuki Hayabusa 1300 Suzuki Intruder M1800R Suzuki GS 150R
TVS Apache RTR FI TVS Centra TVS Fiero

• TVS Fiero F2

• TVS Fiero FX
Suzuki Max 100 Suzuki Max 100R Suzuki Samurai
Suzuki Shogun Suzuki Shaolin TVS Flame
TVS Victor TVS Star

• TVS Victor GLX • TVS Star

• TVS Victor GX
• TVS Star City
• TVS Victor Edge
>> SCOOTERETTES/MOPEDS
TVS Scooty Streak TVS Scooty TVS XL

• TVS Scooty ES • TVS XL Super

• TVS Scooty Pep
• TVS XL Super HD
• TVS Pep Plus
TVS XL Super TVS XL Super HD Scooty Teenz Electric

TVS Apache RTR TVS Spectra DX/AX

AWAITED MODEL
TVS Taurus Fiero F3
5. Royal Enfield Motors Ltd.

Established in 1955, Royal Enfield was the brand of the

Enfield Cycle Company. Royal Enfield is one the oldest
bike on the road. The company is well known for
producing motorcycles, but they also produce bicycle,
stationary engines, lawnmowers and rifle small parts for
the Royal Small Arms Factory in Enfield. Royal Enfield Motors Ltd. has its headquarter
situated at Thiruvottiyur, Chennai, Tamil Nadu, India.

In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and later
merged with it in 1994. The annual turnover of the company is Rs.10 billion. The Eicher
Group has a range of interests in the automotive industry, including small trucks,
tractors, exports, automotive gears, management consultancy and cartography.

The corporate philosophy of Royal Enfield Motors Ltd. is built around quality and
unflinching loyalty to the customer, a few reasons why the legendary Bullet is not just a
bike but a motorcycling icon. The ruggedness and reliability of the bike is endorsed by
the army, the police, the paramilitary forces and over 500 institutions which form part of
the die-hard customer base of the Bullet, dubbed the "Rajagadi", or royal vehicle.

The innovative ideas of the Royal Enfield -Eicher nexus are exhibited in the new line of
Enfield bikes and the global technological tie-ups.

Royal Enfield has existing technical tie-ups with :

- Criterion Engineers, UK for a new 5 speed transmission system.

- DB Designs, UK for styling.
- AVL, Austria for new engines.
- FW Egli for high power engines for 535cc and 624cc.

Royal Enfield Motors Ltd. operates out of 12 area offices, 16 depots, over 250 dealers
and 150 authorized service centers in India. The company also exports its products to
over 20 countries including Canada, France, Japan, USA, Germany and UK.
1.1.7 Royal Enfield Model

TWO WHEELERS
>> MOTORCYCLE
Bullet 350 Bullet 500 Enfield Diesel
Bullet Deluxe Bullet Electra Bullet Machismo

• Bullet Electra

• Bullet Electra 5S
Bullet Machismo 500 Bullet Std 12V Lightning 500
Taurus Thunderbird Twin spark

6. Yamaha Motor Pvt. Ltd.

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50
joint venture with the Escorts Group in 1996. However, in August 2001, Yamaha
acquired its remaining stake as well, bringing the Indian operations under its complete
control as a 100% subsidiary of Yamaha Motor Co., Ltd, Japan.
India Yamaha Motor operates from its state-of-the-art-manufacturing units at Faridabad
in Haryana and Surajpur in Uttar Pradesh and produces motorcycles both for domestic
and export markets. With a strong workforce of 2000 employees, India Yamaha Motor is
highly customer-driven and has a countrywide network of over 400 dealers.
The company pioneered the volume bike segment with the launch of its 100 cc 2-stroke

SALES PROFILE
Sales (%) by product category (consolidated)
Sales (%) by region (consolidated)

MAJOR PRODUCTS& SERVICES:

• Manufacture and sales of motorcycles, scooters, electro-hybrid bicycles, boats,

sail boats, Water Vehicles, pools, utility boats, fishing boats, outboard motors,
diesel engines, 4-wheel ATVs, side-by-side vehicles, racing karts, golf cars,
multi-purpose engines, generators, water pumps, snowmobiles, small-sized
snow throwers, automotive engines, intelligent machinery, industrial-use remote
control helicopters, electrical power units for wheelchairs, helmets.
• Biotechnological production, processing and sales of agricultural and marine
products and microorganisms.
• Import and sales of various types of products, development of tourist businesses
and management of leisure, recreational facilities and related services.

motorcycle RX 100. Since then, it has introduced an entire range of 2-stroke

and 4-
stroke bikes in India. Presently, its product portfolio includes Crux (100cc),
Alba (106cc)
and Gladiator (125cc).

1.3 SWOT ANALYSIS

A scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified as
strengths (S) or weaknesses (W), and those external to the firm can be classified as
opportunities (O) or threats (T). Such an analysis of the strategic environment is referred
to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's resources
and capabilities to the competitive environment in which it operates. As such, it is
instrumental in strategy formulation and selection. The following diagram shows how a
SWOT analysis fits into an environmental scan:

SWOT Analysis Framework

Environmental Scan
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
|
SWOT Matrix

1.4 SWOT ANALYSIS FOR THE TWO WHEELER INDUSTRY

 Strength

• Established brands, Strong Brand

Name
Weaknesses
• Fuel efficient
• Style statement • Extremely price sensitive
• Convenient in heavy traffic • Short PLC
• Cheap and affordable • High R and D costs
• Easy and cheap finance availability
• Patents
• Good reputation among customers

Threats
Opportunities

• The Rs.1 Lakh car

• Growing premium segment
• Cut throat competition
• Increasing dispensable income
• Increasing number of players in the
• Environmental concerns
market
• Exports increasing
• Rising raw material costs

• Very strong demand in the 100cc. • Increasing rates of interest on

segment dominated by limited finance

players.

1.5 SWOT ANALYSIS FOR INDIA YAMAHA MOTORS

 Strength

• Size and scale of parent company. Weaknesses

• Effective Advertising Capability

• Small showrooms.
• Committed and dedicated staff.
• Not much emphasis on aggressive
• High emphasis on R and D.
selling.
• Experience in the market.
• Weak product diversity.
• Established brand.
• Established market channel.

• Power, Speed & Acceleration

Opportunities Threats

• Growing premium segment. • Cut throat competition

• Global expansion into the Caribbean • Increasing number of players in the

& Central America. market

• Expansion of target market (include • Rising raw material costs

women). • Increasing rates of interest on

• Increasing dispensable income. finance

• 1st mover advantage.

At the end we can say that all the above are giving a very tight competition to INDIA
YAMAHA MOTORS in India. To overcome these competitors YAMAHA is constantly
doing R & D about its product and market as well.

We can classify these competitors into following groups according to their attributes and
their competitive forces.

3 RECENT LAUNCHES
YAMAHA FZ-S

Yamaha FZ-S 150cc, a recently launched bike by the industry giant Yamaha. After the
grand success of FZ-16 Yamaha has finally launched its modified version (FZ-S) in
India. This fabulous bike is equipped with all the necessary features one may think of. It
stands ahead in style and performance not only in its segment but beyond. This bike is
best suited for those who want elegance and power in one. It is designed and
engineered with the capacity for active and aggressive enjoyment of around-town street
riding and styling, bringing a sense of pride for the owner of the bike. It is especially
designed to satiate riders' desire for style and fashion. It is popularly referred as the
“Stylish Macho Street Fighter” (Lord of the Streets).

The primary features of Yamaha FZ-S include:

• European international design

• Stainless steel body
• Aerodynamic muscular design
• High torque rate
• Carbon pattern meter console
• Latest graphics
• Disk brakes
• Electric start starting system
• Electronic fuel injection system
YAMAHA YZF R15
This is the latest offering from the Yamaha stable. The YZF R15 is the first truly sports
bike launched in India. The looks and design have been done keeping the bigger R1 in
mind and hence the resemblance.
The bike is priced at Rs.97,500 (ex-showroom) across India. It boasts of the first liquid
cooled 4 valve engine in the two wheeler category which gives it better performance and
power. It is a 150cc bike having enough power to bring chills to the rider when he revs
up the accelerator.

BAJAJ PULSAR DTS FI 220 CC

Bajaj auto has upgraded the Pulsar family with the launch of its high-end bike Pulsar
DTS-Fi 220 cc. This advanced variant of popular Pulsar combines new features and
advanced technology. This all new version of Pulsar is priced at Rs.70, 000 (ex-
showroom Delhi).

The 2009 edition of Bajaj Pulsar comes without fuel injection technology but yet it will
produce more power at 21PS. The new Bajaj Pulsar DTS – Fi 220 cc will reach the top
speed of more than 140 kmph. This two wheeler from India's second largest two-wheeler
manufacturer comes with single cylinder 4 stroke air cooled engine. This motorcycle has
a maximum power of 21.04 @ 8500rpm and maximum torque of 19.12@7500 rpm.

Bajaj Pulsar DTS-Fi 220cc will be available in all contemporary black themes as well as
can be availed in 4 different colors. The recently launched Bajaj Pulsar DTS Fi-220 cc
reflects a major difference from other Pulsar bikes launched by the automaker. This
change is the downgrading of Pulsar model from Fuel Injection to carburetion.
The all new Bajaj Pulsar DTS-Fi 220cc is loaded with features like engine oil cooler, split
seats, clip-on handle bar, auto choke and fuel & battery charge indicators. This new
version of Pulsar makes the use of temperature based ignition mapping. This kind of
mapping helps to optimize the ignition timing in order to achieve good start ability,
outstanding torque as well as quick warm up.

The different features to look out for in Bajaj Pulsar DTS Fi include rear and front disc
brakes. In fact, this is the first bike in India that comes with both types of brakes. Since
this motorcycle is designed to offer a thrilling riding experience it is also packed with
varied safety features for smooth running. According to the reviews of this advanced
version of Pulsar, this bike in India is sure to give competition to motorcycles of other
brands.
HONDA CBF STUNNER FI

Geared with PGM-FI technology, Honda CBF Stunner FI has made its way in India. The
new version of CBF Stunner sports bike from Honda Motorcycle and scooters
India Pvt. Ltd. (HMSI) was launched and targeted for the youth in the country. This
sports bike from Honda Motorcycle's is priced at around Rs. 66,200 (ex-showroom,
Bangalore) and Rs. 64,630 (ex-showroom, Delhi).
An ultimate desire for every youth, Honda CBF Stunner PGM FI comes equipped with
superior technology and stunning performance. Powered with a 4-stroke, air cooled OHC
single cylinder engine, this two wheeler is offered with digital ignition. The new Honda
CBF Stunner FI is believed to develop 11bhp at 8000 rpm and 11 nm torque at 6500
rpm. The motorbike re-defines style with amazing features like a stepped-up seat, half
fairing, front and rear tubeless tires, alloy wheels for a comfortable riding experience.

Honda CBF Stunner PGM FI 125 cc gives a top speed of 65kmph in 5.2 seconds. The
eco- consciousness of the company HMSI, that is the wholly-owned two-wheeler
subsidiary of Japan-based Honda motor Company, is also evident from the PGM-FI
technology used in this sports bike. The PGM-Fi (Programmed Fuel Injection) technology
of the two wheeler would keep emission level as low as 1/10 of BS II Norm.

The all new CBF Stunner PGM-FI has maintenance free battery and viscous air filter that
promises less maintenance. Cumulated with PGM-FI technology, this version of Honda
Stunner is believed to reach out to the youngsters and give them a heart racing
experience.

Key Highlights:-

• PGM-FI (Programmed Fuel Injection) Technology

• 125cc Air-Cooled Four-Stroke Self-Start Engine
• Dual Tone Styling
• Sporty Half-Chain Case
• Bank Angle Sensor
• Premium 3-D Emblem
• Handle Weight
• Premium Key
• Stepped-up Seat
• Half Fairing
• Front and Rear Tubeless Tires
• Alloy Wheels
THUNDERBIRD TWINSPARK
Launched in year 2008, Thunderbird Twinspark is one of the most stylish bike intended
for those who want and wish to be on top of the world. It is the first model that leads
Royal Enfield revolutionary Unit Construction Engine.

The Royal Enfield Thunderbird Twinspark is the perfect example of unfolding mix of old
and new. Its 346 cc engine, 4 stroke single cylinder air-cooled engine delivers maximum
power of 19.8 bhp @ 5250 rpm capacity ensuring its smooth performance and constant
vacuum (CV) carburetor assure its simple start. Delighting customers, this bike is
absolute comfort statement for the passenger as well as rider. This bike is like a must-
have for every rider and it is hard to beat in terms of pure riding pleasure and visual
delight.

Special Features:
Incorporated with all latest and advanced features, this bike includes:

• Ergonomically designed high density foam seats

• Rear gas filled shock absorber
• Heat shield on silencer
• Bigger CV carburetor BS-29
• Electric starter
 • Electronic flasher
• Multi focal reflector
• 280mm disc-front brake and 150mm drum-rear brake
• Engine – Single cylinder, 4 Stroke, OHV, Dual spark ignition engine, aircooled
• Power and Torque - 19.8 bhp @ 5250 rpm/28 Nm @ 4000 rpm
• Fuel tank capacity – 15.5±1Liters

SUZUKI HAYABUSA 1300

Price range: Rs 1,248k to 1,252k

Suzuki Hayabusa 1300 is the world fastest production bike, the ultimate choice and
preference of all bike lovers.

Features:

Some special characteristics of Suzuki Hayabusa 1300 are :

• Steering damper
 • Engine mode indicator
• Vertically stacked headlight
• LED taillight
• Radial mount TOKICO front brake caliper

Colors:
Some special characteristics of Suzuki Hayabusa 1300 are :

• Solid black/ Metallic majestic gold

• Pearl nebular black/ Metallic phantom gray

Specifications:

• Engine capacity - 1340 cm2 (cc)

• Fuel Tank - 21.0 litres (5.5 US gallons)
• Type - 4-stroke, 4-cylinder, liquid-cooled, DOHC
• Compression ratio - 12.5:1

SUZUKI GS 150R

Price range: Rs 57k to 62k

Also known for its attractive appeal, Suzuki GS 150R is styled with inspiration from
Suzuki international super bike GSX-R. Equipped with engine balancer technology, this
bike is designed with a high acceleration performance in low to mid range speed, i.e.
very important for city driving.
Colors:

• Candy max orange

• Pearl nebular black gray
• Metallic flint grey
• Candy dark greenish blue

Features:
Equipped with certain unique features like :

• 150cc engine with new design

• Digital speedometer with dual modes
• Majestic and stronger fuel tank
• Integrated rear turn signal
• Rear suspension with separate reservoir tank

Specifications:

• Curb mass - 149 kgs

• Type - Four-stroke, Air-cooled,SOHC
• Displacement - 149.5 cm3 (cc)
• Max Power - 13.8bhp@8500rpm
• Max Torque - 13.4Nm@6000rpm
• Compression ratio - 9.35/1

TVS APACHE RTR FI 160

Aiming to strengthen its presence in the premium segment, country's third largest two-
wheeler maker TVS Motor Company on Monday launched an advanced version of its
bike Apache fitted with fuel injection engine, priced at Rs 64,990.

The new bike Apache RTR FI would come with an 160 cc fuel injected engine

TVS APACHE RTR FI is the first bike from its stable to feature innovative Fuel Injection
technology. By launching the apache RTR FI TVS will bring the its ultimate racing
experience to the streets. According to TVS, the new apache RTR FI offers instant thrill
and superior performance of a fuel injected 160cc engine. The 160cc FI mill cranks out
15.1bhp at 8500 rpm and 13.1Nm at 6500rpm. The figures are not much different for
carbureted apache RTR. However, the power delivery will be progressive and the
refinement can be felt while driving. TVS claims the top speed of the new apache RTR
Fuel Injection (FI) as 120kmph. Also because of the improved combustion the emissions
will be minimal in the new apache RTR Fuel Injection (FI).Another novel feature in the
new apache RTR Fuel Injection (FI) is the rear disc brake. This new feature will give
better control over this beast.

YAMAHA R125

The most advanced 125 production super sport

machine that Yamaha will launch in 2009 will be
YZF-R125. This radical, high-revving, fuel-injected
125 is the work of the same engineers who created
our legendary YZF-R1 and YZF-R6 super sport
bikes.
Main Features of Yamaha R125:
-Liquid-cooled single-cylinder 4-stroke
-SOHC 4-valve cylinder head
-Wet-sump lubrication system
-Fuel injection
-Electric start
-6-speed transmission
-R6-style mid-ship muffler
-Dual catalysers
-Air Induction system

Expected In: July, 2009

YAMAHA R6

What you will feel when you on Yamaha's new R6 a

quick progress, not rapid, beneath 70 mph in top,
however erst over the legal limit insignificant six
takes off as if a scolded cat without so a lot of as a
down shift. Drop to moment at this speed and you
will find yourself looking at the sky as everything
disappears behind you at an alarming rate and it will
be interesting to see what the six will do in the
quarter mile.

ENGINE SPECIFICATIONS
Displacement: 599cc
Engine: 4-stroke, 4-cylinder, 16-valves, D0HC
Maximum Power: 127 Bhp @ 14500 rpm
Maximum Torque: 65.8 Nm @ 11000 rpm
Gears: 6 Manual

DIMENSIONS
Length: 2040.00 mm
Width: 705.00 mm
Height: 1100.00 mm
Weight: 185.00 kg
Ground Clearance: 130.00 mm
Fuel Tank: 17.30 ltrs
Wheelbase: 1380.00 mm
Wheel Type: Alloys

Expected In : July, 2009

YAMAHA GLADIATOR 165

Yamaha's 165cc Gladiator will develop around 16.5

PS and complete a 0 – 60 sprints in less than 5
seconds and it believed that Yamaha has already
sent the bike for homologation and will launch its mid
Next Year. Bike was first displayed in last year’s Auto
Expo.

ENGINE SPECIFICATIONS
Displacement: 165cc
Engine: Air-cooled, 4-stroke, SOHC, 2-valve
Maximum Power: 15 Bhp (Expected)
Maximum Torque: 14 Nm ( Expected)
Gears: 5 Speed

DIMENSIONS
Length: 2065.00 mm
Width: 730.00 mm
Height: 1100.00 mm
Ground Clearance: 155.00 mm
Fuel Tank: 13.00 ltrs
Wheelbase: 1300.00 mm

Expected In : July, 2009

TVS APACHE RTR MENACE 180

180cc version of flagship product apache RTR will be

seen on road by mid 2009. Codenamed as the
menace, the new apache RTR 180cc would come
with few cosmetic upgrades. But what’s more
exciting will be the new powerful 180cc engine.

TVS announced earlier that it would introduce the

ABS (Anti-lock Braking System) in its forthcoming powerful bikes. However the new
apache RTR 180cc menace will not have ABS as it will push up the price. The proposed
200cc version of apache RTR might come with ABS.

ENGINE SPECIFICATIONS
Displacement: 180cc
Engine: 4 Stroke, EFi
Maximum Power: 18bhp
Gears: 5 Speed

DIMENSIONS
Length: 2020.00 mm
Width: 730.00 mm
Height: 1100.00 mm
Weight: 130.00 kg
Ground Clearance: 180.00 mm
Fuel Tank: 16.00 ltrs
Wheelbase: 1300.00 mm

OTHER SPECIFICATIONS
Top Speed: 135kph
Fuel Consumption (City): 28.00
Fuel Consumption (Highway): 42.00
Expected In: July, 2009

4.FUTURE LAUNCHES

HONDA CBR 150 R

After successfully accepted in Malaysian market. It is
speculated that Honda may bring its CBR 150R in
India by 2009 in competition with Karizma & R15
competitor and may price of CBR150 will be below
one lakh.

The Honda CBR150R is powered by a 149.4cc 4-

stroke carbureted single cylinder 4 valve DOHC engine with 11.0:1 compression and
CDI ignition, mated to a 6-speed wet clutch manual transmission. It produces 18.5 Bhp
at 10500 rpm and 13.5 Nm of torque at 8500 rpm.

Main Features of Honda CBR150R:

- DOHV 4-valve 150 cc water-cooled engine with balancer shaft.
- 6-speed return manual transmission.
- Front and rear disc brakes.
- Key slot cover for better protection against theft.
- Monoshock rear shock absorber.
- Secondary Air Supply System (SASS) which delivers extra air to the exhaust system
for cleaner emission.
- Catalytic Converter.
Expected In: July, 2009
HONDA INTERCEPTOR

The hunger of Indian sports bikers will be satisfied

with the Honda Interceptor 800cc. Honda VFR 800
Interceptor is a Sports Touring Motorcycle i.e. it is
meant for the highways with a relaxed and
comfortable seating position, unlike the Sports bikes
that we currently see on the road. It’s sleek,
aerodynamic bodywork is functional yet beautiful and air flowing through the
windscreen’s central air vent provides cool air to the rider at low speeds and increases
rider comfort at higher speeds by offering real protection from high velocity winds.
Expected In: July, 2009

HONDA CBR 1000 RR

The history-making CBR900RR Fire blade

completely rewrote the book of Super Sport
motorcycle design with a remarkably compact and
lightweight configuration based on a ‘Less Is More’
concept that achieved a breathtaking blast of litre-
class performance from a 900cc inline-4 engine
shoehorned into a highly advanced 600cc-class
chassis.

The Honda CBR1000RR Fire blade is a Moto GP race replica with many of its features
taken from Honda's top-end racing bikes. The result is a high-performance track and
racing superbike that also makes for a perfect street bike.

Expected In: July, 2009

KAWASAKI NINJA 250 R

Made its debut on 1986 Kawasaki Ninja after a
long wait will soon be in India by 2009. The Ninja
250R features a six-speed transmission that has
been revised for smoother shifting, and is mated to a more durable clutch. An entirely
new radiator provides better cooling while being lighter in weight. A new radiator fan is
quieter.

Its expected price in India will be around 1.3 Lacs

Expected In: July, 2009

SUZUKI GSX-R 1000

Suzuki GSX-R 1000 offers something different when

compare to other bike in same segment amongst the
usual selling points of superb handling, class leading
performance it offers switchable ECU maps.
With switchable ECU fuel mapping you can switch to
low performance for easy handling in traffic, fuel
economy and when riding with cruisers, medium for
faster rides with the 600cc and full power for the track and Hayabusa owners.

Expected In: July, 2009

HONDA CBR600RR
Inspired by the Honda RC211V MotoGP the
CBR600RR receives the "RR" designation for "race
replica" because of its emphasis on racing
characteristics such as an advanced braced
swingarm, center-up exhaust system, and more
aggressive riding position.

Features Of Honda CBR600 RR:

1) Exciting new colors: Red/Black, Pearl Orange/Black, Metallic Silver, and Graffiti
2) Exclusive, MotoGP derived Unit Pro-Link Rear Suspension
3) Dual Stage Fuel Injection System (PGM - DSFI) features two injectors per cylinder.
4) MotoGP-derived Honda Electronic Steering Damper (HESD).
5) High-revving engine redlines at 15,000 rpm.
6) MotoGP-style center-up exhaust system.
7) Radial-mount front brake calipers combined with radial actuated master cylinder.
8) 41mm Honda Multi-Action System (HMAS) inverted front fork.
9) Centrally located fuel tank increases mass centralization for a more compact frame
design.
10) Line beam headlights feature three-piece multi-reflector design.

Expected In: October, 2009

KAWASAKI NINJA ZX-14

Kawasaki Ninja ZX-14 is created to do everything

right. Right from the beginning. Its aerodynamics
reminds users that Kawasaki is indeed an aircraft
maker. The Kawasaki Ninja ZX-14 is based around
Kawasaki motorcycles 1352cc four-stroke engine. It
is an advanced version of Kawasaki’s unique
aluminum monologue frame, lightweight and very
strong.

Expected In: November, 2009

 CRITICAL REVIEW OF
LITERATURE

CRITICAL REVIEW OF LITERATURE

‘Consumer buyer behavior refers to the buying behavior of final consumers – individuals
and households who buy goods and services for personal consumption.’ (Philip Kotler)

‘To understand the buyer, and to create a customer out of him, through this
understanding, is the purpose of buyer behavior.’ (Ramaswamy and Namakumari)

It needs to be specified at the outset that there is no unified, tested and universally
established theory of buyer behavior. What is available today, are certain ideas of buyer
behavior.

FACTORS INFLUENCING BUYER BEHAVIOUR

A number of factors influence buyer behavior. They can be grouped under three broad
categories.
1. Factors that are part of buyer as an individual.
2. Buyer’s social environment (group influence).
3. Information from a variety of sources.

1. Factors that are part of the Buyer as an individual

An individual’s religion and cultural background, his personality traits, self concept, his
general endowments, his upbringing – in short, his overall biodata – play a crucial role in
his conduct as a buyer/consumer. These factors can be grouped broadly into three
categories:
i. Personal factors
ii. Cultural factors
iii. Psychological factors
I. Personal Factors – Age, Education, Economic Position, Self concept
An individual’s age, level of education, his occupation, overall economic position and
lifestyle all influence his role as a buyer. They decide what products he will buy and
consume. A person’s self concept and his concern about his about status also influence
his buying decisions. In fact today people are very concerned about their image and
status in society. It’s a direct outcome of their material prosperity. Status is announced
through various symbols like dress, ornaments, possessions and general lifestyle. The
desire for self expression and self advancement is closely linked with social status. For
several people, status is a major motive force guiding and shaping their life. Their
concept of status decides what material possessions they should have. Even if a product
that constitutes a status symbol is beyond their immediate reach, their aspiration to
possess it will influence their decision making process.

ii. Cultural Factors – Religion, Language etc.

Every culture, every language and every religion group dictates its own unique patterns
of social conduct. Within each religion, there may be several sects and sub sects; there
may be orthodox groups and cosmopolitan groups. In dress, food habits or marriage – in
almost all matters of individual life – religion and culture exercise an influence on the
individual, though the intensity may vary from society to society. The do’s and don’ts
listed out by religion and culture impacts the individual’s lifestyle and buying behavior.

iii.Psychological Factors – Beliefs, Attitudes, Motivation, Perception

Just like the economic and social conditions, a man’s disposition too has a close bearing
on his purchase decisions. Individuals coming under the same economic and social
groups can be vastly different when it comes to certain personal beliefs, faith and
attitudes. One may be timid and plain, while another may be outgoing and aggressive.
One may be traditional in the overall view of life, while another may be modern. One
may be east innovative, while another may welcome anything new. In fact, the maximum
variations are seen here and in the matter of analysis and assessment too, this area
poses maximum problem to the marketer.
2. Buyer’s Social Environment (group influence)
The buyer living in a society is influenced by it and is in turn influencing its course of
development. He is a member of several organizations and groups, both formal and
informal. He belongs to a family, he works for a certain firm, he may be a member of a
professional forum, he may belong to a particular political group, or a cultural body.
There is constant interaction between the individual and the groups to which he belongs.
And all these interactions leave some imprint on him, which influences him in his day to
day life and consequently, his buying behavior.
There are two broad types of group influences:
i. Influence of intimate group.
ii. Influence of the broad social class.

I. Influence of Intimate Group

Examples of intimate groups are family, friends, close colleagues and closely knit
organizations. These groups exercise a strong influence on the lifestyles and the buying
behavior of its members. Among these groups the most influential and primary groups
are the family and peer groups. The peer groups are closely knit groups composed of
individuals, who have a common social background and who normally belong to the
same age group. The peer group has the greatest influence on the individual member as
a stabilizer of styles and behavior patterns.
In any intimate group, there is likely to be an informal group leader. Te group respects
him and looks up to him. Though the leader may not directly influence every member in
his day to day purchases, his judgment on men and matters, and facts and fashion is
respected by the group; and his views and lifestyle influences their buying decisions. He
is normally the innovator in the group, who first tries new products and new ideas, and
then, he becomes the propagator of those products and ideas. These opinion leaders or
influencers play a key role in marketing. Marketers often try to reach these leaders first
through advertisements and other means of communication. And if the leaders are
convinced, their groups are likely to follow suit.

ii. Influence of the Broad Social Class

Structurally, the social class is a larger group than the intimate groups. The constitution
of a social class is decided by the income, occupation, place of residence, etc. of the
individual members. The members of a social class enjoy more or less the same status
or prestige in the community. They share a common lifestyle and behaviour pattern. And
they normally select a product or brand that caters to their class norms. Often they even
do their shopping in the same shopping are and patronize selected shops, which befit
their class image. This does not mean that all the members of a given social class will
buy the same products and the same brands or conform to the same style, amounting to
a sort of regimentation. Differential liking may exist among the members. But, in a buying
situation in which objective standard are not available to guide them, they may conform
to the ‘class norms’. Studies have shown that the extent of influence the social class has
on its members will depend on the extent of attractiveness of the group holds out to
them. The greater the attractiveness, the larger is the behavioral conformity.
Study of group influence on the individual buying behaviour will help the marketers to
develop right strategies for different customer segments. It is not feasible for them to
appeal to the fancies of every individual buyer. They can find ’commonalities’ or ‘pattern’
among specific groups of buyers and work on them.

iii. Information from various sources

The buyer today is exposed to a veritable flood of information, unleashed on him from
different sources. These sources inform him about new products and services, improved
versions of existing products, new uses for existing products and so on. The information
sources that persuade people to try a product include: advertising, samples and trials,
display in shops and salesmen’s suggestions.
Each of these sources provides some information to the buyer about the products. When
the buyer sees an advertisement for a product, he is informed about the existence of the
products. Later on, he may develop a positive or negative attitude towards the product or
he may remain neutral. In any case, a piece of information about the product is made
available to him and it has some influence on his buying behavior.
The availability of the product in the shop itself acts as an information source to te buyer.
The buyer may evince an interest in the product and may inquire about it. The product
advertises itself.
Often salesmen serve as a source of information to buyers. The salesmen may inform
the prospects about a product, explain its advantages and may even suggest a trial
purchase. In cases where a rapport has already been established between the buyer
and the salesman, the latter’s suggestions are normally taken as reliable.
 THE BUYING PROCESS

1. Problem Recognition
The process of buying normally starts with the recognition of a need by the
consumer. He recognizes a problem and develops a perception of the problem. Then
he seeks information for solving his problem.

2. Awareness
 The customer turns to his environment /world of information around him. It makes
him aware of the existence of the product that would solve his problem.
3. Comprehension (Evaluation)
Comprehension comes out of his ability to reason with the information.
The awareness and comprehension stages represent the information processing
stage. These two stages constitute the cognitive field of the purchase process.
4. Attitude
It is the sum total of the individual’s faith and feelings towards a product. As a result
of his awareness and comprehension, the consumer develops an attitude – favorable
or unfavorable – towards the product. The purchase process will continue only if he
develops a favorable attitude or a liking for the product.
5. Legitimization
The buyer must be convinces that the purchase of the product is he legitimate
course of action. This stage often stands as a barrier between a favorable attitude
towards the product and actual purchase. Only if the buyer is convinced about the
correctness of the purchase decision, will he proceed. At this stage, he may seek
further information regarding the product, or attempt to assess the information
already available.
Attitude and legitimization constitute the attitude field of he purchase process.
6. Trial
Conviction leads the consumer to try the product on a small scale ; he may buy a
sample. He tries to evaluate the product from his own experience.
7. Adoption
A successful trial leads him to buy/adopt the product.
Trial and Adoption constitute the behavioral field in the buying process.
8. Post-Purchase Behavior
The purchase leads to a specific post purchase behavior. Usually, it creates some
restless ness in the mind of the individual. He is not sure about the product. He may
feel that ‘the other brand’ would have been better. He may even feel that the
salesman has taken him for a ride. As this dissonance is uncomfortable, the
individual, by himself will seek all means to recover his conviction and poise. He well
seed reassuring advertisements of the products or he may deliberately avoid positive
stories about the competing brand.
 BIBLIOGRAPHY
&
REFERENCES

9.1 BIBLIOGRAPHY

1) Phillip Kotler; Principles of marketing, 7th Edition; Pearson Publication.

2) Saxena and Rajan; Marketing Management; Tata McGraw Hill; 3rd Edition
3) Ramaswami, V.S. and Namakumari, S.; Marketing Management; Macmillan India;
2002.
4) Batra Satish & Kazmi SHH ; Consumer behaviour text & cases; 1999.
5) Gupta, S.P. and Gupta, M.P.; Business Statistics; 14th Edition; Sultan Chand
Publications.
6) Robert W and Boockholdt, James L.; Factors Leading To change in consumer
behavior: A Study of Managers Perspectives; Creativity Research Journal, 11(4), Page No.
245-307; 1998.
9.2 REFERENCES

1. The Yamaha India website;

www.yamaha-motor-india.com

2. Overview of performance of the Indian Automobile Industry

http://www.siamindia.com/scripts/IndustryStatistics.aspx

3. Overview of economy of automobile industry website seen on 26th June

http://www.iloveindia.com/economy-of-india/automobile-industry.html

4. Overview On BAJAJ AUTO, website seen on 6th July

http://auto.indiamart.com/bajaj-auto/

5. Overview On HERO HONDA, website seen on 6th July

http://auto.indiamart.com/hero-honda/

6. Overview On HONDA, website seen on 6th July

http://auto.indiamart.com/two-wheelers/hmsil.html

7. Overview On TVS SUZUKI, website seen on 6th July

http://auto.indiamart.com/tvs-suzuki/

8. Overview On ROYAL ENFIELD, website seen on 6th July

http://auto.indiamart.com/motorcycles/thunderbird
9. Overview of Recent Launches of different brands, website seen on 7 July
http://auto.indiamart.com/motorcycles/bajaj-pulsar-dts-fi220/
http://auto.indiamart.com/motorcycles/yamaha-fzs/
http://auto.indiamart.com/motorcycles/honda-cbf-stunner-fi/index.html
http://auto.indiamart.com/motorcycles/suzuki-hayabusa-1300/
http://auto.indiamart.com/motorcycles/suzuki-gs-150r/

10. Upcoming bikes in India, seen on 6th July

http://www.indiamarks.com/guide/Upcoming-Bikes-in-India-in-2009/10179
11. Overview of Total Turnover, seen on 6th July
http://www.siamindia.com/scripts/gross-turnover.aspx

12. Overview of Domestic market share, seen on 6th July

http://www.siamindia.com/scripts/market-share.aspx

13. Overview of Production Trend of automobile industry

http://www.siamindia.com/scripts/production-trend.aspx