Consumer Perception and Preference regarding 150cc motorcycle bike in Ludhiana City

Major Research Project Submitted To PUNJAB TECHNICAL UNIVERSITY, JALANDHAR In the partial fulfillment of requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (2005 2007) In Major-Marketing, Minor- finance Submitted By Dewang Shukla University Roll No. __554221343__________ PUNJAB COLLEGE OF TECHNICAL EDUCATION

LUDHIANA

CERTIFICATE I This is to certify that the project report entitled Consumer Perception and Preference regarding 150cc motorcycle bike in Ludhiana City submitted by Mr. Dewang Shukla is a bonafide piece of work conducted under my supervision and guidance. No part of this work has been in any other degree of any other university. The data sources have been duly acknowledged. It may be considered for evaluation in partial fulfillment of the degree of Master in Business Administration. Date: Project Advisor Mr. Gautam Bansal Reader, Department of Management PCTE Ludhiana

CERTIFICATE II This is to certify that this thesis entitled Consumer Perception and Preference regarding 150cc motorcycle bike in Ludhiana City submitted by Dewang Shukla (Roll No. 554221343) to the Punjab Technical University in partial fulfillment of the requirements for the degree of Masters of Business Administration in the subject of Marketing has been approved by Students Advisory Committee after an Oral Examination on the same collaboration with the External Examiner.

____________ Mr. Gautam Bansal (Project Advisor)

_______________ External Examiner

ACKNOWLEDGEMENT This project has been possible through the direct and indirect co-operation of various persons to whom I wish to express my appreciation and gratitude. First and foremost, my thanks go to my teacher and Project Advisor Mr. Gautam Bansal whose constant guidance helped me to complete this project. In addition to this, I would like to thank all my respondents who have spent their valuable time and experience with me in getting the requested information for this project report. I find myself short of words to acknowledge the love, help and inspiration rendered by my parents and friends to take up this study. During this project numerous other people helped me out but the mentioning those entire names here is not possible. To all those helps I extend my heartiest thanks, as without their help this project would have not materialized.

Dewang Shukla MBA Final Punjab College of Technical Education Univ. Roll. No. 554221343

Title of Project: Name of the Student: University Roll No.: Specialization Major Advisor: Degree to be Awarded: Year (Batch): Name of the University: No. of Pages:

Consumer Perception and Preference regarding 150cc motorcycle bike in Ludhiana City Dewang Shukla 554221343 Major: Marketing Minor: Finance Mr. Gautam Bansal Masters of Business Administration 2005 2007 Punjab Technical University, Jalandhar 8+59

ABSTRACT
This project has been taken to identify the Consumer Preference and Perception regarding 150cc motorbike in Ludhiana city. In today two wheeler industry is one of the growing industry in India and in two wheeler industry 150 cc motorbike is trend between different age group in India. In this research my sample size is 100 and research design is descriptive in nature and sample technique is convenience in nature. the major limitation of this research is sample technique is convenience in nature the major finding of the research is The most important factors considered while purchasing a motorbike are pick up , then comes styling and fuel efficiency.

Dewang Shukla Roll no- 554221343 (Student)

Mr. Gautam Bansal (Major Advisor)

CONTENTS
Chapter -1 Introduction Two wheelers market size and growth Market Characteristics Recent trend in two wheelers Industry Two wheeler sales Two wheeler production trend Review of Literature Objective of the study Impotence of the study Research Methodology Limitations of the study Data Analysis and Interpretation Summary Recommendations Bibliography Questionnaire 1-15 3-4 5-7 8-10 11-13 13-15 17-19 21 22 24-25 26 27-50 52 54 55 56-58

Chapter-2 Chapter-3 Chapter-4 Chapter-5 Chapter-6

List of Tables
Table No 1.1 1.2 1.3 1.4 1.5 1.6 1.7 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10(i) 5.10 (ii) 5.10(iii) 5.10(iv) 5.11(i) 5.11(ii) 5.11 (iii) 5.11(iv) Table Name Two wheelers: Comparative Characteristics Two wheelers Export from India Company wise Two wheelers Exports Two wheeler Domestic sales trend Two wheeler Production trend (motorcycles) Two wheeler Production trend (scooter) Two wheeler Production trend (mopeds) Sample size composition Showing the Age Wise distribution of respondents Showing the Occupation wise distribution of respondents Showing Income wise distribution of respondents Showing Source of information about the bike Shows the different factors which influence the purchase decision Factor consider while purchasing 150cc motorbike Showing fuel efficiency of motorbike Consumer Perception of motorbike technology Rating of different factors in relation to Pulsar Rating of different factors in relation to CBZ Rating of different factors in relation to Unicorn Rating of different factors in relation to Apache Showing the level of satisfaction to different factors of Bajaj Pulsar Showing the level of satisfaction to different factors of CBZ Showing the level of satisfaction to different factors of Unicorn Showing the level of satisfaction to different factors of Apache Page No 6 11 12 14 15 15 16 29 30 31 32 33 34 35 37 38 39 40 41 42 45 46 46 47

5.12 5.13 5.14

Customer perception of future improvements in the motorbike Consumer perception regarding price changes in this segment Consumer perception regarding foreign Collaboration

49 50 51

List of Graph
Graph no 1.1 1.2 1.3 1.4 1.5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10(i) 5.10 (ii) 5.10(iii) 5.10(iv) 5.11(i) 5.12 5.13 5.14 Graph Name Segmental growth of Indian two wheeler industry Trends in Segmental Share in Industry Sales Shares of Two-Wheeler Manufacturers in Industry Sales Two wheeler Domestic sales trend Two wheeler Production trend (motorcycles) Sample size composition Showing the Age Wise distribution of respondents Showing the Occupation wise distribution of respondents Showing Income wise distribution of respondents Showing Source of information about the bike Shows the different factors which influence the purchase decision Factor consider while purchasing 150cc motorbike Showing fuel efficiency of motorbike Consumer Perception of motorbike technology Rating of different factors in relation to Pulsar Rating of different factors in relation to CBZ Rating of different factors in relation to Unicorn Rating of different factors in relation to Apache Level of satisfaction of different bikes on different factors Customer perception of future improvements in the motorbike Consumer perception regarding price changes in this segment Consumer perception regarding foreign Collaboration Page No 5 7 9 14 15 29 30 31 32 33 34 36 37 38 40 41 42 43 47 49 50 51

CHAPTER 1 INTRODUCTION

Customers today are more informed and more demanding than ever they know quality service when they get it and they arent afraid of taking their business elsewhere if they dont get it .Most manufactures have taken this fact to heart because a refusal to knowledge this reality can spell- failure-rejection by the one who holds the purse strings and the key of profits. Satisfaction of customers needs, in fact, provides a rationale for the firms existence. Therefore customer behavior lies at the heart of modern marketing and its knowledge is vital for a firms existence, growth and success. An understanding of the motives underlying the consumer behavior helps a firm to seek better and effective ways to satisfy consumers. Consumer behavior, however, is a complex system where there is an interaction of various social, economical and psychological factors. All these factors affect the purchase decision of the buyer and his perception about different products. Buying decision process incorporates all the activities that individuals go through in their role as consumers. It start right from when there is a state of deprivation (need arousal) and goes through a point when a means of need satisfaction has been obtained. It ends at a juncture when the product has been used for a sufficiently long period of time to judge the level of satisfaction (post purchase evaluation). Satisfaction is the key to generate repeat business. It ensures customer loyalty and determines whether the customer would come again to the company. In the past, selling motorbikes wasnt much of a problem for their manufactures. Choice as limited and the demarcation clear, but as more and more companies jumped into fray and churned out quite a number of models, the customer who till now didnt have much of a choice, became demanding and knowledgeable. Thus it become necessary for the producers and sellers to understand the perceptions, attitudes and preferences of their target markets and to load their bikes with feature that added value to the product. Through it is very difficult to judge which features are required by which customers, but there is likelihood of knowing the features that a particular segment of society is looking for. Thus, this research is being carried out to study the various social, economic and psychological factors, which affect the decision of customers while buying

motorcycles. Automobile is one of the latest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decades, well directed efforts have been made to provide a new look to the automobile policy for recognizing the sectors full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiative to bring the policy frame work in consonance with WTO requirements have set the industry in progressive track. Removal of the restricted environment has helped restricting, and enable industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as substantial in prices. Aggressive marketing by auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group

TRENDS IN TWO WHEELER INDUSTRY The trend today is towards a niche market. The control-quota-permit days of just three motorcycles- Bullet, Jawa and Rajdoot, and just two scooters- Lambretta and Bajaj were over long ago. Customer wants individually. The motorcycle (or scooter) is no longer just a means of transport. It is more a means of expressing your personality, The gretest proof of this is the Hero Honda Splendor. The earlier CD 100, through immensely popular, did not catch on with the youth segment- they were ashamed of it. Only the Splendor caught on. This proof that looks matter. What the customer is looking for today is: Utility, furl economy, reliability, maintenance, affordability, performance, good after sale services at reasonable cost, affordable and available spare parts, looks. Status, safety and comfort. It is technically not possible for any single bike to the best in all the above parameters. The power performance of Pulsar is not possible in the Super Splendor and fuel economy of the Super Splendor and the fuel economy of the Super Splendor is not possible in the Pulsar. There are no two wheelers in the world today which can be all the things to all the

people. The Indian 2-wheeler industry has been undergoing a massive change. The population explosion, the transition from scooters to bikes, from 2-stroke engines to 4stroke, from smaller engines to bigger ones - everything seems to be happening all at the same time. The growth of the segment has been significant in the last 10years particularly when the consumer preference has also shifted to Bikes from Scooters and from 2-stroke to 4stroke engines. All this has been an outcome of a steady rise in the level of individual income, a change in the mind-set brought about by the spread of education and pervasiveness of media, a growing need for personalized transport among the members of all age-groups, etc. No more is a vehicle treated as just a commodity but has become an integral part of one's personality. It is then only natural that everything else associated with this industry should change too. Like the 2-wheeler owners' preferences - for handling of their machines for maintenance, the way it is driven, the way it is kept, the way it is treated. Or the amount a discerning bike or scooter owner would spend on the upkeep of his vehicle.

RECENT TRENDS IN THE AUTOMOBILE INDUSTRY The Indian automotive industry consists of five segments: commercial vehicles; multiutility vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold in the domestic market and 453,591 units exported during the first nine months of FY2005 (9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding previous. The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties. TWO-WHEELERS: MARKET SIZE & GROWTH In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around 77.5% of the total vehicles sold in the period mentioned.

Segmental Growth of the Indian Two Wheeler Industry (FY1995-2004)

Fig (1.1)
After facing its worst recession during the early 1990s, the industry bounced back with a 25% increase in volume sales in FY1995. However, the momentum could not be sustained and sales growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth rate declining to 3% that year. However, sales picked up thereafter mainly on the strength of an increase in the disposable income of middle-income salaried people (following the implementation of the Fifth Pay Commission's recommendations), higher access to relatively inexpensive financing, and increasing availability of fuel efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although, the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-growth. FY2003 also witnessed a healthy growth in overall twowheeler sales led by higher growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the scooters segment posted healthy growth while the mopeds continued to decline. Figure 1 presents the variations across various product sub-segments of the two-wheeler industry between FY1995 and FY2004.

MARKET CHARACTERISTICS Demand Segmental Classification and Characteristics

The three main product segments in the two-wheeler category are scooters, motorcycles and mopeds. However, in response to evolving demographics and various other factors, other sub segments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the first two emerged as a response to demographic changes, the introduction of 4stroke scooters has followed the imposition of stringent pollution control norms in the early 2000. Besides, these prominent sub-segments, product groups within these subsegments have gained importance in the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The characteristics of each of the three broad segments are discussed in Table 1. Two-Wheelers: Comparative Characteristics Scooter Price*(Rs. as in January 2005) Stroke Engine Capacity (cc) Ignition Engine Power (bhp) Weight (kg) Fuel Efficiency (kms per litre) Load Carrying > 22,000 2-stroke, 4-stroke 90-150 Kick/Electronic 6.5-9 90-100 50-75 High Motorcycle > 30,000 Mainly 4-stroke 100, 125, > 125 Kick/Electronic 7-8 and above > 100 50-80+ Highest Moped > 12,000 2-stroke 50, 60 Kick/Electronic 2-3 60-70 70-80 Low

Table (1.1)
Segmental Market Share The Indian two-wheeler industry has undergone a significant change over the past 10 years with the preference changing from scooters and mopeds to motorcycles. The scooters segment was the largest till FY1998, accounting for around 42% of the twowheeler sales (motorcycles and mopeds accounted for 37% and 21 % of the market respectively, that year). However, the motorcycles segment that had witnessed high

growth (since FY1994) became larger than the scooter segment in terms of market share for the first time in FY1999. Between FY1996 and 9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to 79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively. Trends in Segmental Share in Industry Sales (FY19969MFY2005)

Fig (1.2)
While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy growth of 20%, indicating a clear shift in consumer preference. This shift, which continues, has been prompted by two major factors: change in the country's demographic profile, and technological advancements. Over the past 10-15 years the demographic profile of the typical two-wheeler customer has changed. The customer is likely to be salaried and in the first job. With a younger audience, the attributes that are sought of a two-wheeler have also changed. Following the opening up of the economy and the increasing exposure levels of this new target audience, power and styling are now as important as comfort and utility. The marketing pitch of scooters has typically emphasized reliability, price, comfort and utility across various applications. Motorcycles, on the other hand, have been traditionally positioned as vehicles of power and style, which are rugged and more durable. These features have now been complemented by the availability of new designs and technological innovations. Moreover, higher mileage offered by the executive and entry-level models has also attracted interest of two-wheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising that the new set of customers has preferred motorcycles to scooters. With better ground clearance, larger wheels and better suspension offered by motorcycles, they are well positioned to capture the rising demand in rural areas where these characteristics matter most. Scooters are perceived to be family vehicles, which offer more functional value such as broader seat, bigger storage space and easier ride. However, with the second-hand car market developing, a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out. Nevertheless, the past few years have witnessed a shift in preference

towards gearless scooters (that are popular among women) within the scooters segment. Motorcycles, offer higher fuel efficiency, greater acceleration and more environmentfriendliness. Given the declining difference in prices of scooters and motorcycles in the past few years, the preference has shifted towards motorcycles. Besides a change in demographic profile, technology and reduction in the price difference between motorcycles and scooters, another factor that has weighed in favor of motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay an up-front premium while purchasing a motorcycle in exchange for lower maintenance and a relatively higher resale value. SUPPLY Manufacturers As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

Shares of Two-Wheeler Manufacturers in Industry Sales (FY20009MFY2005)

Fig (1.3) Although the three players have dominated the market for a relative long period of time, their individual market shares have undergone a major change. Bajaj Auto was the undisputed market leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its market share. HHML, which had concentrated on the motorcycle segment, was the main beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on the other hand, witnessed an overall decline in market share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated on a year on year basis till FY2003 as it changed its product mix but has declined since then.

RECENT TRENDS IN THE TWO-WHEELER INDUSTRY Companies raising capacity to meet the growing demand All the major two-wheeler manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI and others, have increased their manufacturing capacities in the recent past. The total capacity of these players stood at 7.8 million units per annum (FY2003) as against total market sales of 3.8 million units in FY2002. Most of the players have either expanded capacity, or converted their existing capacities for scooters and mopeds into those for manufacturing motorcycles. The move has been prompted by the rapid growth reported by the motorcycles segment since FY1995.

HHML increased the capacity of its plants from 1.8 million units in FY2003 to 2.25 million in FY2004 and has been able to achieve 92% capacity utilization. In light of the increase in demand for motorcycles, the company plans to set up a new plant. Since its entry in the Indian market during FY2002, HMSI has aggressively expanded its capacity. NICHE MARKETS ALSO WITNESSING INTENSE COMPETITION A significant trend witnessed over the past five years is the inclination of consumers towards products with superior features and styling. Better awareness about international models has raised expectations of consumers on some key attributes, especially quality, styling, and performance. High competitive intensity has prompted players to launch vehicles with improved attributes at a price less than the competitive models. In an effort to satisfy the distinct needs of consumers, producers are identifying emerging consumer preferences and developing new models. For instance, in the motorcycles segment, motorcycles with engine capacity over 150cc, is a segment that has witnessed significant new product launches and hence, become more competitive. The indigenously launched Pulsar 150 had met with success on its launch and thereafter, a host of models have been launched in this segment by various players. While Bajaj Auto launched the Pulsars (150 and 180 cc) with digital twin spark technology (DTSi) that offers a powerful engine and fuel efficiency of 125 cc models, model launches by other players include LML's Graptor/Beamer, HMSI's Unicorn besides the HHML's CBZ (improved version launched in 2003-04) and TVS' Fiero F2. Moreover, in the recent past, the motorcycle segment has witnessed launch of vehicles with higher engine capacity (higher than 150cc) and power (higher than 15bhp). These include models such as Bajaj Auto Eliminator and Royal Enfield's Thunderbird followed by HHML's Karisma. Besides these, KEL has launched premium segment motorcycles GF 170 and GF Laser besides launching products from the portfolio of its technology partner (Hyosung's Aquila and Comet 250). The products in this segment cater for style conscious consumers. Quite a few players are developing models combining features such as higher engine capacity" optimum mix of power and performance, and superior styling. However, the extent of shift to these products would depend on the positioning of such products in terms of price.

In the scooters segment, the market for plastic-bodied variomatic scooters continues to witness growth in the scenario of overall decline in scooter volumes. Higher volumes and growth are especially true for certain scooter models, such as Honda Activa, that brought in new technology (besides variomatic transmission) to further differentiate themselves. Thus, the need to differentiate and create a niche has led to companies strengthening their research and development (R&D) capabilities and reducing the development time for new models. Increasing focus on exports For the first nine months of FY2005, two-wheeler exports increased by 37% over the corresponding previous, led mainly by motorcycles even as exports of other two-wheelers were healthy. While motorcycle exports increased by 40%, scooter and moped exports increased by 29% and 27% respectively. Motorcycle exports by Bajaj Auto, HHML and TVS have reported a robust growth in FY2005 and are expected to increase further in the medium term

Two-Wheeler Exports from India (in numbers)

FY2000 FY2001 FY2002 FY2003 FY2004 CAGR Scooters Motorcycles Mopeds Total 20,188 35,295 27,754 83,237 25,625 41,339 44,174 111,138 28332 56,880 18,971 104183 30116 126122 23330 179568 53148 187287 24234 264669 (FY2000-04) 27.4 51.4 -3.3 33.5 9MFY2005 44832 188807 22739 256378

Table (1.2) Although the Indian two-wheeler manufacturers have forayed on their own in their target export markets, there have been instances of tie-ups with the technology partners. Bajaj Auto's tie-up with Kawasaki to jointly market Bajaj products in Philippines is a case in point. Under the tie-up, M/s Kawasaki Motors Philippines Corporation has been appointed as exclusive distributors to market select Bajaj two-wheelers that include Byk, Caliber 115 and Wind 125. These vehicles are being sent to Philippines in the completely built unit (CBU) form. Other strategy of expanding international presence considered by few players is that of setting up assembly lines in select South East Asian countries either on their own or in partnership with local players. Besides, plans of select overseas

technology partners to source from their Indian partners and plans of global majors to develop their Indian manufacturing unit as a sourcing hub may also lead to increase in two-wheeler exports from India. Company wise two-wheeler exports since FY2000 are presented in the following table Company-wise two-wheeler exports (FY2000-9MFY2005) FY2000 FY2001 FY2002 FY2003 FY2004 CAGR (FY2000-04) Bajaj Auto HHML HMSI TVS Yamaha Others Total 14924 10061 0 7265 15197 35790 83237 16112 10324 0 6621 20446 57635 111138 28527 13023 1293 7765 20321 32752 103681 53366 90210 56.8 40.5 n.a 40.2 21.3 4.6 33.5 9MFY2 005 87225 43441 27734 36666 27539 33773 256378

21165 39254 10916 31414 9636 28093 45546 32906 39053 42792 179682 264669 Table (1.3)

TWO WHEELER SALES Two- wheeler sales in the country have sky rocketed in the recent years, and the annual sales of motorcycles in India expected to cross the 10 million mark by 2010. The low penetration of two-wheelers in the country 31 two-wheelers per 1000 citizens (2004) leaves immense scope for the growth of the market. Overall the industry sales of twowheelers have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country. The share of motorcycles have increased over the years, while that of other two-wheelers like geared scooters, Scooterettes and mopeds have shown a negative growth or remained stagnant. The two-wheelers have penetrated 7% of rural house hold and 24% of urban markets, thus it leaves an immense scope for the market to grow. Bajaj Auto one of the leading producers of automobiles in the country has been able to sell close to 2.3 million vehicles in 2005/2006, the sales of the company grew by almost 31%. The company registered a 32% growth in the sales of motorcycles much above the industry average of 19%. Bajaj Auto has emerged as a market leader in the entry level or

price segment motorcycle with the Bajaj CT 100 accounting for nearly 40% of the market share. It also commands a 62% market share in the premium segment of motorcycles with products like the Bajaj Pulsar DTSI. TVS Motors which has lots of firsts to its credit in the two-wheeler sector in the country was able to sell 1.34 million units during the same period thus registering an overall growth of 15% from the previous year. In the motorcycle segment the company's growth in sales was in sync with the industry average. The introductions of motorcycles like the TVS Star range of motorcycles have helped the company in gaining a healthy market share in this segment. Where the company has emerged as a clear winner by holding onto its leadership position is in the moped segment. The company has posted a 10% growth in sales accounting for a market share of about 77%. The company also expects to arrest the decline of its one time best seller TVS Victor through its new variant Victor GLS. If this figures have daunted you the best is yet to come, the country leader in twowheelers Hero Honda have crossed the three million mark during the year 2005/2006 which is a good few lakhs more than its nearest competitor Bajaj Auto. The company accounted for nearly 40% of then two-wheeler market. In the motorcycle segment the company has been able to attain a market share of about 50%. The segment in which Hero Honda has emerged as a clear winner is the Deluxe segment, which is the largest segment in the motorcycles category, with its flagship family of motorcycles Splendor selling over 1.2 million units which is just a shade less than all the two wheelers sold by TVS during the same year. The motorcycle category is expected to see a further growth and according to industry experts it will drive all other category of two-wheelers to the periphery. The table below shows the over all trend of Industry Sales over a 5 year period. The figures are provided by the Society of Automobile Manufactures Association (SIAM).

TWO-WHEELER DOMESTIC SALES TREND Motorcycles

2001-02 2887194 Scooters 2001-02 908268 Mopeds 2001-02 408263

2002-03 3647493 2002-03 825648 2002-03 338985

2003-04 4170445 2003-04 886295 2003-04 307509

2004-05 4964753 2004-05 922428 2004-05 322584 Table (1.4)

2005-06 5815417 2005-06 908159 2005-06 332741

s a le s
8 0 0 0 0 0 0 6 0 0 0 0 0 0

tr e n d
S c o o t e rs M o to r c y c le s M o p e d s G ra n d T o ta l

s a le s

4 0 0 0 0 0 0 2 0 0 0 0 0 0 0

2 0 0 1 - 0 2 2 0 0 2 - 02 30 0 3 - 02 40 0 4 - 02 50 0 5 - 0 6

y e a r
Fig (1.4)
TWO WHEELER PRODUCTION TREND The production of two-wheeler has merely reflected the way the market has developed over the recent years. Here is a brief look about the production trend of two wheelers in the country based on the data provided by Society of Indian Automobile Manufacturers (SIAM)

Motorcycles 2001-02 2002-03 2003-04 2004-05 2005-06

2906323

3876175

4355168

5193894 Table (1.5)

6201214

The production figures of motorcycles simply reflect the trend that is prevalent in the industry, as the demand of motorcycles has increased so have their production. Demand for two-wheelers has grown at a rate of 17% in the year 2004/2005. Bajaj Auto which is the one of the largest producer of two-wheelers in the country has been able to achieve a production of 1.8 million vehicles with manpower of 10,914 in 2004/2005 as compared to 1.5 million vehicles in 2003/2004 with manpower of 11,531. Many companies like the Honda Motorcycles and Scooters India Limited are beefing up their production capacities to reach a target of around 300,000 per annum.

P r o d u c tio n
8 7 6 5 4 3 2 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

tr e n d
S c o o te r s M o t o r c y c le s M o p e d s T o ta l T w o W h e e le r s

P r o d u c t io n

2 0 0 1 - 02 20 0 2 - 02 30 0 3 - 02 40 0 4 - 02 50 0 5 - 0 6

Y e a r
Fig (1.5)

Scooters
2001-02 937506 2002-03 848434 2003-04 935279 2004-05 987498 Table(1.6) 2005-06 1020013

Though the metal geared scooters have fallen out of favour of the Indian riders, the ungeared segment of scooters have been able to drive the volumes in this segment. This fact is reflected in the dip in production during the early 2000. On a more positive note the ungeared segment of scooters have grown by over 13% in 2004/2005 thus driving the

production in this segment. Bajaj Auto which has an overwhelming presence in this segment has produced 742,000 units during 2004/2005. Mopeds 2001-02 427498 2002-03 351612 2003-04 332294 2004-05 348437 Table(1.6) 2005-06 379574

These entry level two-wheelers have seen a steady decline in the production in the recent years, though in the year 2005-2006 their production has picked up but its too early to predict a revival of this segment of two- wheelers. As entry level motorcycles become cheaper with every passing day mopeds might see a further dip in production and sales in the years to come

CHAPTER - 2 REVIEW OF LITERATURE

Verhoef (2003) investigated the differential effects of customer relationship perceptions and relationship marketing instruments on customer retention and customer share development. The result showed that effective commitment and legal programs that provide economic incentives positively effect both customer retention and customer share development, whereas direct mailings influence customer share development. Mann (2002) opined in his study, Why do consumers change brands? that consumers primarily switch over to other brands because of the better quality of the new brand. Monotony in using the same brand and getting impressed by the advertisements of the new brands have been the other reasons. Moorthy and Ratchford (1997) emphasized the effect of prior brand perceptions on the search process. When consumers had brand specific prior distributions of utility, the existence of relative uncertainty among brands was necessary for search to be useful. Thus, it was explained why product class involvement or low search costs may not be sufficient to induce large amounts of search activity and why there may be an inverted U shaped relationship between search behaviors for new automobiles, using data collected contemporaneously with consumers actual decision process. Pickering (1992) conducted a study on verbal explanations of automobile purchase decisions and depicted that there are five major reasons for brand switching in case of automobiles especially motorcycles. These are performance reasons, high repair bills, want for a heavier model and promotion or deal offered

Chitale (1989) conducted a study on two wheelers and he found that after sales service was becoming as important as the sale itself. Availability of spare parts at reasonable price had a direct bearing on sales. Rao and Monroe (1989) investigated experimentally the influence of price, brand name and store name on buyers perceptions of product quality. The meta analysis suggest that for consumer products, relationships between price and perceived quality and between brand name and perceived quality are positive and statistically significant. However the positive effect of store name on perceived quality is small and not statistically significant Parmar (1987) conducted a study on consumer preferences for scooters in Amritsar. He found that attributes like price, color, appearance of body, easy availability of spare parts, after sales services are neither important nor unimportant while making the purchase decisions. Better resale value and durability are the basic reasons to purchase a particular brand of scooter. Goyal and Kapoor (1986) conducted a research on customer Service for effective policies for light commercial vehicles. They concluded that customers are ready to pay a higher price if the product and customer service are of high standard. Guptan (1986) gave an article on 100 cc motorcycles and the consumer preferences. According to him an efficient engine is responsible for the purchase of the motorcycle by a customer.

Malhotra (1986) proposed an alternative approach for measuring consumer preferences by using limited information. The approach differed from the popular

approaches in which once the non-preferred choice alternatives were identified; no further information on them was obtained. The author reported an empirical investigation and two Monte Carlo studies comparing the performances of the proposed approach with that of metric conjoint analysis, which was a corresponding approach based on full information and an OLS approach that used information on the preferred alternatives only. Punj and Staelin (1983) evaluated model of consumer information search behaviour for new automobiles. The results supported the hypothesis that there are at least two unique components of prior knowledge: specific product knowledge and general product class knowledge. The former caused less external search while later caused more external search. External search was found to be negatively related to cost of search while positively related to cost savings. Satisfaction was related to cost savings but not to external search. Dass and Reddy (1976) conducted a study on brand preferences and use of goods by consumers. The study diagnosed the significance of various factors like age, income, occupation etc. in forming brand loyalty and purchase behavior pattern of consumers.

CHAPTER - 3 OBJECTIVES OF THE STUDY

The objectives of the study are:4. To study the factor influencing the purchase decision of people regarding 150cc motorbikes. 5. To study the level of satisfaction onto different factors among the owners of 150cc motorbikes. 6. To study what brand of motorcycle has been most effective in meeting the technological requirements 7. To determine whether the actual performance of the motorbike matches proportionately with the projected image of the company. 8. To ask the respondents about their expectations and improvement suggestions for their motorbike brands in future. 9. To study the effect of different promotional factors like family friends, magazines advertisements etc on the motorbike purchase decision.

IMPORTANCE OF THE STUDY

The study aims at making contributions to the consumer behavior concerned with motorcycles. It will be beneficial for both students and teachers of consumer behavior as it contemplates how the knowledge of consumer behavior can be applied in research work. The study will have great implications from marketers point of view as it will help them in strategy formulation. The knowledge of media factors, considered important by the consumer, would be helpful to the marketer for adopting more efficient marketing strategies. Analysis of the post purchase feelings of motorcycle owners and the interpretations thereof together with the findings of the factors determining the brand preference can be helpful to both manufacturers and dealers of motorcycles enabling them to meet the requirements of the market more effectively and efficiently.

CHAPTER - 4 RESEARCH METHODOLOGY

In this chapter, the research methodology used in the conduct of the study has been discussed The aim of the study is to explore the consumer preference for 150 cc motorcycles. The study tries to cover all the aspects of motorbike purchase behavior and consumer preference. It stars from general introduction highlighting the objectives limitations. It moves through a systematic methodology to gather arrange and analyze data 10. RESEARCH DESIGN A scientifically carried out research project has a definite framework for data collection. This framework constitutes the research design. The research design for the present study is descriptive as it matches well with the objectives of the study.

11. UNIVERSE OF THE STUDY

The universe of the study includes the persons in Ludhiana city who owned a 150cc motorbike

12. SAMPLE AND SAMPLING DESIGN Sample will be collected in two stages. In the first stage, two dealers for each of the four companies in the city will be selected randomly from the available list of dealers for four companies. In the second stage of sample selection, main service center of each of the selected dealers will be visited. At each service center, 25 respondents will be contacted. 13. TECHNIQUE OF SAMPLING After thoroughly reviewing the nature of the study it was decided to employ a non sampling technique named convenience sampling 14. SAMPLE SIZE The sample size is 100

15. PRODUCT, BRANDS ATTRIBUTES CHOSEN The product chosen is motorbike. There are number of brands of motorbike in the market. However, only four major brands of motorbikes in 150cc segment were considered which were available in Ludhiana city. The motorcycles selected are Bajaj Pulsar, Hero Honda Achiever/CBZ, Honda Unicorn and TVS Apache. 16. DATA COLLECTION For the purpose of study, both primary and secondary data were required. Primary data was collected from the motorbike owners using a questionnaire which was devised to be brief, simple and replies. At the same time it was structured to cross check the respondents replies in order to get relevant information. The questions were dichotomous, multiple choice or open ended type. It also consisted of likert type statements to know there attitude towards various attributes. Five points scale was used. For classification of attributes are most important (MI), important (I), neutral (N), unimportant (UI) and most unimportant (M.U.I). Secondary data was collected from various journals /magazines, websites and dealers regarding the market performance of these bikes

17. DATA ANALYSIS AND INTERPRETATION For better analysis of data, the respondents have been tabulated into master and derivative tables in terms if both numbers and percentages. For scientific interpretation of data various statistical tools, such as weighted averages and percentages have been used. Weighted average was calculated in some questions according to the relevance where the respondents were asked to rank or rate.

LIMITATIONS OF THE STUDY The study is based on the responses recorded in a pre-structured questionnaire all attempts have been made to arrive at significant conclusions. Still due to the nature of the study, there are some inherit limitations. These are listed below: 18. The paucity of time with which the study was to be carried out, limited the scope of the research. 19. The study is confirmed to Ludhiana city only. consequently the findings may not be applicable to other pars of the country because of social and cultural differences 20. The sample was collected using convenience sampling techniques. As such the results may not give an exact representation of the population.

21. Consumer purchase behavior is dynamic in nature as such there is every possibility that over the time and space that results of today may become inconsistent tomorrow.

CHAPTER -5 DATA ANALYSIS AND INTERPRETATION

This section has been divided into two parts. Part I deals with sample description which has been given on the basis of various demographic characteristics such as age; occupation annual income family education etc. Part II gives the findings of the study related to various aspects of consumer preference regarding 150cc motorbikes PART I DEMOGRAPHIC PROFILE ANALYSIS

This part discusses the respondents profile in terms of demographics (age, occupation family income and education.) 22. SAMPLE SIZE COMPOSITION A sample of 100 respondents is taken for the purpose of present study and their distribution is given in the table Table 5.1: Showing the Sample size composition BRAND Bajaj Pulsar Hero Honda CBZ/Achiever TVS Apache Honda Unicorn Total NO. OF RESPONDENTS 25 25 25 25 100 .

S A M P L E

S IZ E

C O M P O S IT IO N
B a ja j P u ls a r H e ro H o n d a C B Z /A c h ie v e r T V S A p a c h e U n ic o rn

H o n d a

Fig (5.1) Interpretation: As shown in the above table and graph I have taken 25 respondents in each bike Bajaj pulsar, Hero Honda CBZ/Achiever, TVS Apache, Honda Unicorn. 23. product has been product has been AGE Table5.2: Showing the Age Wise distribution of respondents Age 18-25 26-30 31-40 Above 40 Total Bajaj Pulsar 12 9 2 2 25 Hero Honda TVS Apache 13 7 3 2 25 Honda Unicorn 11 6 4 4 25 Total 45 32 14 9 100 CBZ/Achiever 9 10 5 1 25

A g e W is e

d is t r ib u t io n

o f re s p o n d e n ts

2 0 1 5
Age

1 8 -2 5 2 5 -3 0 3 0 -4 0 A b o v e 4 0

1 0 5 0
B a ja j P u ls a r H e r o H o n d a T V S C B Z / A c h ie v e r A p a c h eH o n d a U n ic o r n

B ra n d s
Fig. 5.2
INTERPRETATION: On the overall most of the respondents are in the age group of 18-25 (45), and about 32 in the age group of 25-30 and rest above 30

If we analyze for each motorbike separately, it is seen that the position is nearly the same as above i.e. around 3/4th in case of both Bajaj Pulsar, 70% of bike users of Unicorn and TVS Apache are in the age group of 18-25 & 25-30 which covers a major chunk of its share by youth only.

24. OCCUPATION Occupation wise distribution is shown in the Table Table 5.3: - Showing the Occupation wise distribution of respondents Occupation category Student Business Profession Total Bajaj Pulsar 18 5 2 25 Hero Honda CBZ/ TVS Achiever 17 4 4 25 Apache 19 2 4 25 Honda Unicorn 15 5 5 25

Occupation wise distribution of respondents

No Of respondents

20 15 10 5 0
Bajaj Pulsar Hero Honda CBZ/ Achiever TVS Apache Honda Unicorn

Student Business Profession

Brands

Fig.3

Fig (5.3) INTERPRETATION: As regards the occupation profile of the 150cc motorbike owners, there is not much difference between the four bikes. The student community dominates in all the four brands (about 70%), while the ratio business to profession is around 2:1 on average.

5. FAMILY INCOME The respondents were asked to state the annual income of their family. The income wise distribution of the respondents is given in the table 5 Table 5.4: Showing Income wise distribution of respondents Family Income Bajaj Pulsar 6 5 13 Hero Honda TVS Apache Honda CBZ/ Achiever Unicorn 8 7 15 8 8 9 7 6 12

Below 1,00,000 1,00,0011,25,000 1,25,0011,75,000

Income wise distribution of respondent

20 Income 15 10 5 0
Ap ac he Un ico rn Pu ls ar CB Z

< 1,00000 1 Lakh-1.25 Lakh 1.25Lakh-1.75 Lakh

Brands

Fig 5.4 INTERPRETATION: The maximum percentage of respondents (around 70%) are in the higher income groups i.e. above 1,25,000, about 45% of the respondents fall in 125000-175000, nearly 30% in 100000-125000 , and the highest income group above 175000 accounts for about 1/5th of the respondents . PART II- RESULTS & ANALYSIS The findings of the study emerging from the survey are as follows:

1. SOURCE OF INFORMATION ABOUT THE BIKE This question deals with the source of information about the bike as to from which source has the consumer come to know about the motor bike. The product and the consumer features determine the nature and extent of information sources. Normally there are two types of information sources that exert influence on buying decision. Table 5.5. Showing Source of information about the bike SOURCE INFORMATION Auto Work Shops Magazines/Newspapers T.V. Advertisement Road Campaigns Word of Mouth Total OF Bajaj Pulsar 4 6 7 1 7 25 Hero Honda TVS CBZ/ Achiever 7 6 5 1 6 25 Apache 1 7 9 7 1 25 Honda Unicorn 4 8 8 2 3 25 16 27 29 11 17 100 Total

N o . o f R esp o n d en ts

S o u r c e o f in f o r m a t io n
10 9 8 7 6 5 4 3 2 1 0
B a ja j P u ls a r H e ro H on da CB Z/ A c h ie v e r TV S A pa che H on da U n ic o r n

T . V . A d v e r t is e m e n t

A u to W o r k S h o p s

M a g a z in e s / N e w s

R o a d C a m p a ig n s

S o u rc e s

Fig.5.5
INTERPRETATION: Table 5.5 shows that the overall major source of information has

W o r d o f M o u th

P ap e rs

been the TV advertisements and the Print media, contributing to 29% and 27% respectively as regards to the motorbikes individually the major source of information of Bajaj Pulsar has been the Media and the word of mouth, for CBZ/ Achiever it has been the auto workshops and word of mouth with media also contributing some share. For TVS Apache a new entrant in this segment there has been a lot of stress on media and road campaign which are the major source of information. As for Honda Unicorn the media only is a source of information. 2. FACTORS INFLUENCING PURCHASE DECISION This question deals with the different factors which influence the purchase decision of motorbikes. These are various factors around the consumers like friends, family, relatives and a persons self opinion. These factors affect the purchase decision to a greater extent. For e.g. a consumer may change his decision to buy a Honda motorbike if his friends or family do not like Honda Table 5.6: Shows the different factors which influence the purchase decision of motorbike in relation to no. of respondents and also shows the percentage of no. of respondents. FACTORS Family Friends Self Opinion Any Other TOTAL NO. OF RESPONDENTS 44 38 60 3 145 PERCENTAGE (%) 30.3 26.2 41.3 2.03 100

F a c t o r s in f lu e n c in g p u r c h a s e d e c is io n

2 % 3 0 % 4 2 %

F a m il y F rie n d s S e lf O p i n io n
2 6 %

A n y O th e r

Fig. 5.6
INTERPRETATION: From the above table its clear that decision to buy a motorbike was mostly decided by the respondent himself (41.3%) of his own experience. Family of the respondents also influenced the purchase decision (30.3) as they decided about the budget etc. friends also, influenced the purchase decision to some extent (26.2). Others such as mechanics or relatives were only a meager (2.03) who influenced the purchase decision regarding the motorbike. 3. FACTORS CONSIDERED WHILE PURCHASING A 150CC This question deals with different factors which are considered by the respondents while purchasing a motor bike. These are various factors attached to a product whi9ch affects the consumer purchase decision. These factors are price, brand name, resale value, performance etc of a product are taken into consideration by the consumer while purchasing a product. Different consumers have different important levels for different factors. For e.g. price may be considered an important factors buy some consumers while reliability may be considered as important factor by some other consumers. Table5.7: shows different factors which are considered by the respondents while purchasing a motor bike and also shows the weighted average of each factors according to different levels of importance attached to each factors i.e. most important, important, neutral, unimportant most unimportant .

FACTORS

Most Imp (5) 46 50 42 56 50 14 24 26 44 10 28

Imp (4) 28 30 34 24 18 28 36 30 28 28 18

Cant Say (3) 20 16 24 12 16 30 24 32 22 32 36

Un Imp (2) 4 4 0 8 10 18 12 10 6 15 10

Most Un imp (1) 2 0 0 0 6 10 4 2 0 14 8

Weighted Average 4.12 4.26 4.98 4.28 3.96 3.18 3.64 3.68 4.22 3.04 3.48

PRICE FUEL EFFICIENCY PICK UP LOOKS/ STYLE BRAND NAME DEALER NETWORK RE-SALE VALUE AFTER SALES SERVICE COMFORT FINANCE FACILITY TECHNOLOGY

F A C T O R S C O N S ID E R E D W H IL E P U R C H A S IN G 1 5 0 C C M O T O R B IK E S
W E IG H T E D A V E R A G E W e ig h t e d A ve ra g e

6 5 4 3 2
T EC H N O LO G Y

4 .9 8 4 .1 2 4.26 4 .2 8 3.96 3 .1 8 4 .2 2 3.64 3 .6 8 3.04 3 .4 8

1
B R AN D N AM E A FTER S ALES E F F IC IE N C Y N ETW O R K CO M FO RT P IC K U P F IN A N C E LO O KS/ P R IC E DE ALER ST YLE VA LU E S E R V IC E

F A C T O R S

Fig 5.7 INTERPRETATION: Table 5.7 shows that all the factors are important to the respondents to some extent because the weighted average of all the factors is more than 3. So from the table 8, we can divide all the factors into most important and less important categories. 25. Most important categories are Pick Up (4.98) because the 150cc bikes are high powered bikes and pick up is considered as one of the most important factor. Then comes, styling (4.28) and fuel efficiency (4.26), riding comfort (4.22) because the person while purchasing a bike considers these at the forefront.

F A C IL IT Y

R E -S A L E

FUEL

26. Important factors are Price (4.12), Brand name (3.96) and Resale value (3.64) 27. Least important factors are technology (3.48), dealer network (3.18) and finance facility (3.04). Cause these are not taken into great consideration while purchasing a bike NORMAL FUEL EFFICIENCY OF MOTORBIKE In this question deals with the normal fuel efficiency of your bike because fuel efficiency is important factor for the purchasing decision of Bike Table 5.8: showing fuel efficiency of motorbike MOTOR BIKE Bajaj OWNERS 20-30 KMPL 31-40 KMPL 41-50 KMPL > 50 KMPL TOTAL Pulsar 2 16 7 0 25 Hero Honda TVS Apache 4 16 5 0 25 Honda Unicorn 3 12 8 2 25 CBZ/ Achiever 2 12 11 0 25

Fuel efficiency of Bike

18 16 14 12 10 8 6 4 2 0 Pulsar CBZ Apache Unicorn Brand

No of respondent

20-30 Kmph 31-40 Kmph 41-50 Kmph > 50 kmph

Fig (5.8) Interpretation: As shown in above table and graph around 60% respondent said that fuel efficiency of the bike is 31-40 Kmph and only 2% respondent said that fuel efficiency is more than 50 Kmpl and these two respondent having Honda Unicorn. in case of Bajaj Pulsar mostly consumer said the fuel efficiency is 31-40 KMPL and same in the case of TVS apache.

4. CONSUMER PRECEPTION OF MOTORBIKE TECHNOLOGY This question deals with the consumer perception about the bike which meets the latest technological requirements. Table 5.9 shows the responses of the owners of different bikes onto the meeting of technological requirements. MOTOR BIKE Bajaj Hero Honda TVS Honda TOTAL

OWNERS (of) Bajaj Pulsar CBZ/Achiever TVS Apache Honda\Unicor n TOTAL

Pulsar 17 4 8 11 40

CBZ/ Achiever 6 17 7 7 37

Apache 2 3 9 4 18

Unicorn 0 1 1 3 5

25 25 25 25 100

C O N S U M E R P R E C E P T I O N O F M O T O R B IK E T E C H N O L O G Y

N o . o f r e s p o n d e n ts

20 15 10 5 0
r a e r d v ls c n ie a P H h p A c ro /A \U j n ic u o o rn e a h

B a ja j P u ls a r He ro Ho n d a C B Z / A c h ie v e r T V S Ap a che H o n d a U n ic o r n

ja

B R AN D S

Fig.5.9
INTERPRETATION: Table 9 shows that the image of Bajaj pulsar and Hero Honda are much more consistent with the consumers as they are meeting with the requirements of latest technology the most. Out of the 25 respondents each, 17 of Pulsar, 4 of CBZ, 8 of apache and 7 of unicorn are in favor of Bajaj Pulsar. And similarly 17 of Hero Honda CBZ, 6 of Bajaj pulsar, 7 of TVs Apache and 11 of Honda unicorn are in favor of Hero Honda CBZ. This is evident from the table that 40 and 37 out of the total 100 respondents perceive Bajaj Pulsar and Hero Honda CBZ motorbikes in this way. 5. RATING OF DIFFERENT BRANDS OF 150CC MOTORBIKES ACCORDING TO DIFFERENT BRANDS:This question deals with rating of different factors of motorbikes according to different brands. These factors include different features relate to a product. For Brand image, price, performance technology etc these factors are considered important by consumer while purchasing a motorbike. These factors are ranked differently by different consumers for various brands. For e.g. for some consumers brand image of Bajaj maybe better than others and price maybe considered higher than others. For some other

consumers brand image of TVS maybe better than Honda and also maybe more stylish than CBZ. So the rating has been done to find the strong and weak points of different brands. All the following tables are related with rating of different factors, which are present t in different brands of 150cc motorbikes, by the respondents. Respondents are asked to give rank from 1to6 to four different brands according to each factor. Weighted averages are calculated separately for each brand separately according to different factor Table 5.10 (i) RATING OF DIFFERENT FACTORS IN RELATION TO BAJAJ PULSAR.

Table 5.10 (i) shows the weighted averages of different factors in relation to Bajaj
Pulsar.

RATING BRAND IMAGE PRICE OUTLOOK /STYLE PERFORMANCE TECHNOLOGY

1 46 26 26 40 34

2 26 34 40 26 36

3 20 12 12 16 14

4 6 12 16 14 6

5 2 16 6 4 10

WEIGHTED AVERAGE 1.92 1.86 2.36 2.16 2.22

WAIGHTED AVERAGE OF DIFFERENT FACTORS O F PULSAR

2.5 2 1.5 1 0.5 0 1.92 1.86 2.36 2.16 2.22 Series1 Performan Outlook/st Technolog image Brand Price

yle

ce

FACTORS

Fig 5.10 (I) INTERPRETATION: TABLE 5.10 (i) shows weighted averages of different factors. Weighted average of brand image is 1.92, of price is 1.86, of style is 2.36 of performance is 2.16 and technology is 2.22.From Table 5.10 (i) it is clear that Bajaj Pulsar strengths are its brand image and its Price and style and technology its only weakness . Table 5.10 (ii) RATING OF DIFFERENT FACTORS IN RELATION TO HERO HONDA CBZ/ACHIEVER: TABLE 5.10 (ii) shows weighted average of different factors in relation to CBZ/Achiever RATING 1 2 3 4 5 WEIGHTED AVERAGE

BRAND IMAGE PRICE OUTLOOK /STYLE PERFORMANCE TECHNOLOGY

14 46 8 12 16

20 26 12 31 22

30 16 26 24 34

30 4 32 22 20

6 8 22 12 8

2.94 2.02 3.48 2.94 2.82

W IG A HTED A VERA OF GE DIFFERENT FA CTO O RS F CBZ/A CHIEVER

2.94 4 3 2 1 0 2.02 3.48 2.94 2.82 Series1 Performan Outlook/st Technolog image Brand Price

y le

ce

FACTORS

Fig 5.10 (ii)

INTERPRETATION: Table5.10 (ii) shows weighted average of different factors. Weighted average of brand image is 2.94, of price are 2.02, of technology are 2.82, of style is 3.48, and of performance is 2.94. From table5.10 (ii) we can see that

CBZ/achievers key strength rated by respondents are Price and technology whereas it lags in performance and style. TABLE 5.10 (iii) RATING OF DIFFERENT FACTORS IN RELATION TO HONDA UNICORN. Table 5.10 (iii) shows the weighted averages of different factors in relation to Honda Unicorn. RATING BRAND IMAGE PRICE OUTLOOK /STYLE PERFORMANCE TECHNOLOGY 1 8 6 10 6 16 2 17 12 5 6 17 3 26 18 23 20 21 4 24 36 31 30 23 5 25 28 31 38 23 WEIGHTED AVERAGE 2.67 3.68 3.68 3.88 3.20

W IG T DA E A EO E HE V RG F D FRN F CO O H N A IF E E T A T R F O D U IC R N AN
2 7 .6 5 4 3 2 1 0 3 8 .6 3 8 .6 3 8 .8 3 .2 S rie e s1 Perf orman Outlook/s t Technolog image Brand Pric e

yle

ce

F CO S AT R

Fig 5.10 (iii) INTERPRETATION: Table 5.10 (iii) shows weighted average s of different factors in relation to Honda unicorn. Weighted average of brand image is 2.67, of price is 3.68 of technology is 3.20, of style is 3.68 and of performance is 3.88. From table 5.10 (iii), we find that strength of Honda unicorn is its technology and brand image but it lags in style

and performance. TABLE 5.10 (IV) RATING OF DIFFERENT FACTORS IN RELATION TO TVS APACHE: Table 5.10 (iv) shows the weighted average of different factors in relation to TVS. RATING BRAND IMAGE PRICE OUTLOOK /STYLE PERFORMANCE TECHNOLOGY 1 4 26 54 32 35 2 18 15 18 26 20 3 42 26 12 14 15 4 18 20 11 14 17 5 18 13 5 14 13 WEIGHTED AVERAGE 3.28 2.79 1.95 2.52 2.53

W IG E HTE A RA E O D VE G F DIFFE NT FA TO O TVS RE C RS F A A HE P C

3 8 .2 4 3 2 1 0 2 9 .7 1.9 5 2 2 .5 2 .53 Se s1 rie Outlook/s t Technolog Perf orman image Brand Pric e

yle

ce

F CO S A T R

Fig 5.10 (iv) INTERPRETATION: Table5.10 (iv) shows weighted average of different factors. Weighted average of brand image is 3.28, of price is 2.79, technology is 2.53, style is 1.95, of performance is 2.52. From table5.10 (iv) its clear that TVS apaches strengths are style, performance and technology. It lags in price and brand image as its the latest entrant in this segment.

TABLE 5.10 (v) RATINGS OF DIFFERENT MOTORBIKES ON DIFFERENT

FACTORS: (Weighted Average) Table 5.10 (v) relates with summary of all the tables of table. In this table weighted average of all the factors of each of the four brands are given to find the best brand. RATING BAJAJ PULSAR BRAND IMAGE PRICE 1.92 1.86 HERO HONDA CBZ/ACHIEVER 2.94 2.02 3.48 2.94 2.82 HONDA UNICORN 2.67 3.68 3.68 3.88 3.20 TVS APACHE 3.28 2.79 1.95 2.52 2.53

OUTLOOK /STYLE 2.36 PERFORMANCE 2.16 TECHNOLOGY 2.22

RATING OF DIFFERENT MOTORBIKE ON DIFFERENT FACTORS

5 4 3 2 1 0
Pr ic O e ut lo ok /s ty le Pe rfo rm an ce Te ch no lo gy im ag e

RATING

PULSAR CBZ UNICORN APACHE

Br an

FACTORS

Fig. 5.10 (v) INTERPRETATION: 28. In Brand Image, Bajaj Pulsar leads among others with weighted average of 1.92 followed by 2.94 of Hero Honda CBZ/Achiever, 2.67 of Honda unicorn and 3.28 of TVS apache. 29. In case of Price Pulsar is the cheapest with weighted average of 1.86, followed by hero Honda 2.02 30. In Case of Technology again Pulsar leads with weighted average of 2.22, followed by 2.82 CBZ/Achiever, 2.53 of TVS Apache and Honda Unicorn Lags behind in this factor of Apache. 31. In case of Style TVS Apache is the leader with weighted average of 1.95 followed by 2.36 of Pulsar, 3.48 of CBZ and 3.68 of Unicorn. 7. LEVEL OF SATISFACTION OF DIFFERENT BRANDS OF 150CC MOTORBIKES ACCORDING TO DIFFERENT FACTORS This question deals with level of satisfaction of different brands of 150cc motorbikes according to different factors. These factors include different features related to a product. For e.g. pick up, Appearance/Design, Comfort, Mileage, after sales service, Maintenance cost etc these factors are considered important by consumer while judging the satisfaction derived from the motorbike. Different consumers have different satisfaction levels for different factors. For e.g. a consumer may be satisfied from the pick up of the bike but may not be satisfied from the riding comfort etc. so the study of satisfaction level has been done to find whether the customers are satisfied or not from their respective bikes. All the following tables are related with satisfaction level of customers onto different factors, which are present in different brands of 150cc motorbikes, by the respondents. and also shows the weighted average of each factors according to different levels of satisfaction attached to each factors i.e. Highly satisfied, Satisfied, neutral,

dissatisfied and highly dissatisfied. Weighted averages are calculated separately for each brand separately according to different levels of satisfaction. 7(i) LEVEL OF SATISFACTION TO DIFFERENT FACTORS TO BAJAJ PULSAR Table 5.11(i) Showing the level of satisfaction to different factors of Bajaj Pulsar

Highly Satisfied (5) Pick up 16 Appearance/Design 15 Comfort 15 Mileage 6 After sales service 15 Maintenance cost 16

Satisfied Neutral Dissatisfied Highly (4) 6 5 6 12 6 6 (3) 3 3 4 3 2 2 (2) 0 2 0 3 1 1 (1) 0 0 0 1 1 0

WEIGHTED

Dissatisfied AVERAGE 4.52 4.32 4.44 3.76 4.32 4.42

7 (ii) LEVEL OF SATISFACTION TO DIFFERENT FACTORS OF HERO HONDA CBZ / ACHIEVER

Table 5.11(ii) showing the Level of satisfaction to different factors. Highly Satisfied (5) Pick up 15 Appearance/Design 12 Comfort 8 (4) 8 4 12 (3) 2 0 4 (2) 0 6 1 Satisfied Neutral Dissatisfied Highly (1) 0 3 0 4.20 3.64 4.08 WEIGHTED Dissatisfied AVERAGE

Mileage After sales service Maintenance cost

8 12 10

5 3 5

7 8 8

3 1 2

2 1 0

3.56 3.96 3.92

7 (iii) LEVEL OF SATISFACTION TO DIFFERENT FACTORS OF HONDA UNICORN Table 5.11(iii) Showing the level of satisfaction to different factors of Honda unicorn Highly Satisfied Pick up (5) 10 (4) 8 11 15 10 11 12 (3) 4 3 3 5 8 10 (2) 3 2 2 2 1 1 Satisfied Neutral Dissatisfied Highly (1) 0 0 1 2 0 0 WEIGHTED Dissatisfied AVERAGE 4.00 4.08 3.72 3.57 3.80 3.60

Appearance/Design 9 Comfort Mileage After sales service Maintenance cost 4 6 5 2

7 (IV) LEVEL OF SATISFACTION TO DIFFERENT FACTORS OF TVS APACHE Table 5.11(iv) level of satisfaction to different factors of TVS Apache Highly Satisfied (5) Pick up 15 Appearance/Design 18 Comfort 10 Mileage After sales service Maintenance cost 7 5 8 (4) 6 6 7 7 15 5 (3) 2 1 4 10 3 6 (2) 2 0 4 1 2 5 Satisfied Neutral Dissatisfied Highly (1) 0 0 0 0 0 1 4.36 4.68 3.92 3.80 3.92 3.52 WEIGHTED Dissatisfied AVERAGE

7 (v) LEVEL OF SATISFACTION OF DIFFERENT BIKES ON DIFFERENT

FACTORS Table 5.11 (v) Level of satisfaction of different bikes on different factors Level Satisfaction Pick up Appearance/Design Comfort Mileage After sales service Maintenance cost Of BAJAJ PULSAR 4.52 4.32 4.44 3.76 4.32 4.42 HERO HONDA CBZ/ACHIEVER 4.20 3.64 4.08 3.56 3.96 3.92 HONDA UNICORN 4.00 4.08 3.72 3.57 3.80 3.60 TVS APACHE 4.36 4.68 3.92 3.80 3.92 3.52

W e ig h t e d A v e ra g e

L E V E L O F S A T IS F A C T IO N O F D IF F E R E N T B IK E S O N D IF F E R E N T F A C T O R S
5 4 .5 4 3 .5 3 2 .5 2 1 .5 1 0 .5 0
B A JA J P ULS A R H E RO H O ND A A p p e a r a n c e / D e s ig n A fte r s a le s s e rv ic e M a in t e n a n c e c o s t H O ND A U N IC O R N TV S A P A CH E

F a c to r s

Fig 5.11 (i)

INTERPRETATION: 32. In Pick Up, Bajaj Pulsar leads among others with weighted average of 4.52 followed by 4.36 of TVS apache, 4.20 Of Hero Honda CBZ/Achiever, 4.00 of Honda unicorn. 33. In Appearance/Design TVS apache is the best with weighted average of 4.68

C o m f o rt

M ile a g e

P ic k u p

followed by 4.32 of Bajaj Pulsar, 4.08 of Honda Unicorn and 3.64 of Hero Honda CBZ/Achiever. 34. In Case of Comfort again Pulsar leads with weighted average of 4.44, followed by 4.08 of CBZ/Achiever, 3.92 of TVS Apache and Honda Unicorn Lags behind with 3.72 in this factor of Apache. 35. In case of Mileage TVS Apache is the leader with weighted average of 3.80 followed by 3.76 of Pulsar, 3.57 of Unicorn and 3.56 of CBZ. 36. In case of after sales service Pulsar leads Again with weighted average of 4.32 followed by 3.96 of CBZ /Achiever, 3.92 of TVS Apache and 3.80 of Unicorn. 37. In case of maintenance cost Pulsar leads with weighted average of 4.42 followed by 3.92 of Hero Honda CBZ/ Achiever, 3.60 of Honda Unicorn and 3.52 of TVS Apache. So from the above analysis we can see that in case of pick up, comfort, after sales service, maintenance cost Bajaj pulsar is the leader in the satisfaction level whereas in case of Appearance/Design and Mileage the young gun TVS Apache has the best satisfaction level with latest designs and aerodynamics. 8. CUSTOMER PRECEPTION OF FUTURE IMPROVEMENTS IN THE MOTORBIKE This question deals with the consumer perception of the future improvements in their bikes. The aim of this question is to know what improvements the consumers want in their respective bikes.

Table 5.12 Showing the Customer perception of future improvements in the motorbike

IMPROVEMENTS

BAJAJ PULSAR

HERO HONDA CBZ/ ACHIEVER 16 13 9 6 7

HONDA

TVS

UNICORN APACHE 14 10 12 5 3 17 9 6 3 6

Better Fuel Efficiency Better Pick Up More Styling Riding Comfort Better Pricing .

18 6 7 5 10

F u tu r e Im p r o v e m e n ts in M o to r b ik e
No of Resp on ses 2 0 1 8 1 6 1 4 1 2 1 0 8 6 4
E f f ic i e n c y P ic k U p C o m f o rt S t y lin g P ric in g

B AJAJ P U LS A R H E R O H O N D A H O N D A U N IC O R N T VS A P AC H E
B e tt e r B e tte r R id in g Fu el B e tt e r M o re

2 0

Im p r o v e m e n t F a c t o r s

Fig

5.12 INTERPRETATION: As shown in the table 5.12 on the overall, about 35% of the users of 150cc motorbikes want that the fuel efficiency of their motorbikes should improve. If we analyze the data for the different bikes individually, it is seen that the owners of Bajaj Pulsar want the fuel efficiency to improve with a better pricing in this segment, whereas the owners of Hero Honda CBZ / achiever want a complete change in the factors. As for the owners of unicorn they want a better design, pickup and styling and the owners of TVS Apache want improvements in its fuel efficiency and pick up. CONSUMERE PERCEPTION REGARDING PRICE CHANGES IN THIS SEGMENT

This question deals with the consumer perception regarding price changes in motorbike industry. Table No: 5.13 showing the Consumer perception regarding price changes in this segment RESPONSE Yes No Cant say Total Percentage 18 32 60 100

Consumer perception regarding price change

60 50 40 30 20 10 0 50 32 18 Series1

YES

NO Responces

Can't Say

Fig 5.13

Interpretation: As shown in the above table 60% respondent said that they cant say about price changes of motorbike its means they are not aware regarding price change in this segment and 18% respondent said they are aware about it and 32% said they are not aware about it.

DOES THE FOREIGN COLLABORATION OF THE COMPANY IMPROVE THE BRAND PERCEPTION Table No 5.14 Showing the Consumer perception regarding foreign Collaboration RESPONSE Yes No Cant say Total Percentage 16 25 59 100 Table No 15

FOREIGN COLLABORATION OF THE COMPANY IMPROVE THE BRAND NAME

PERCENTAGE 80 60 40 20 0 YES NO RESPONSE Can't Say 16 25 59 Series1

Fig 5.14 Interpretation: As shown in above table and graph 59% respondent said they cant say that foreign collaboration improve the brand perception or not and 25% said foreign collaboration will not improve the brand name and 16% said foreign collaboration will improve brand name.

CHAPTER - 6 SUMMARY AND RECCOMENDATIONS

Summary of Findings
38. There is a great association between ages, occupation and education of the respondents as about 70% of the respondents are in the age group of 18-25 and are graduates or undergraduates. 39. The main source of information about the motorbike has been the media both print and T.V. as for Bajaj Pulsar it has been its Media and word of mouth and

for the latest bike in this segment TVS Apache it has been only the Media. 40. The decision to purchase a particular brand of motorcycle was made by the customer himself. (40%). 41. The most important factors considered while purchasing a motorbike are pick up (4.98), then comes styling and fuel efficiency. 42. The image of Pulsar and CBZ is much ore consistent with the consumer perception that they are meeting with the requirements of latest technology. 43. Main attributes of different brands as perceived by respondents: Bajaj Pulsar (Brand Image, Performance ,Technology) , Hero Honda (CBZ Price , Technology ), Honda Unicorn (Brand image, Price) , TVS Apache (Style ,Performance) 44. Rating of 150cc Motorbikes on the basis of survey conducted A. . Bajaj Pulsar B. Hero Honda CBZ/ Achiever C. TVS Apache D. Honda Unicorn 45. About 70% of users of 150cc motorbikes perceive the actual performance of their vehicle to be near to the image posed by the companies about their product: about 90% of Bajaj Pulsar, 75% of Hero Honda, 60% of TVS Apache and 54% of Honda Unicorn motorbike owners. 46. The level of satisfaction onto the different factors given by respondents is that the most satisfied in case of pickup are the owners of Bajaj Pulsar , in case of appearance , design the most satisfied are the customers of TVS Apache , in case of comfort after sales service and maintenance pulsar leads he race and in case of people are the most satisfied with the fuel efficiency of TVS Apache 47. Onto the questions of price changes in the 150cc motorbike segment no significant conclusions could be drawn as ok lack of knowledge of the owners on this question. 48. The question relating to the perception on the foreign collaboration s effect on brand perception showed that those who owned a bike which had foreign

collaboration agreed while others didnt 49. Better fuel efficiency pickup and styling are the three major future improvements wanted by the consumers. in case of Bajaj pulsar the consumers want more fuel efficiency and better pricing , Hero Honda needs a complete revamp of its style and pick up , unicorn needs better styling , fuel efficiency and pick up and at the last TVS Apache needs improvement in fuel efficiency .

RECOMMENDATIONS
1. Bajaj Pulsar should try to maintain its top position by trying to introduce more

fuel efficient engines at a competitive price. 2. Hero Honda CBZ / Achiever needs to concentrate on better styling and improving the overall image of the bike as its far behind in the competition . 3. Honda Unicorn should try for some more variants in this segment and design a more attractive bike. 4. TVS Apache has emerged as a rising star in this segment and needs to improve its fuel efficiency. 5. Overall all the companies need to introduce their motorbike at better and cost effective price lines. 6. there should also be stress on better promotional tools for e.g. road-shows, event organization, sponsorships etc

BIBLIOGRAPHY:

Dass N K and Reddy A (1976) Brand preferences and use by consumers of goods. J Cons Res 11: 119-27. Goyal B B and Kapoor S (1986) Customer service-Effective policies for light commercial vehicles. Decision 13: 28-35 Guptan S (1986) the new 100 cc bikes. Debonair: 16-23 Maltohra N K (1986) An approach to consumer preferences using limited J Mktg Res 23: 33-40. information.

Moorthy S and Richford B (1997) Consumer information search revisited: theory and empirical analysis. J Cons Res 23: 263-271 Mann R S (2002) why do consumers change brands? JMgmt Studies 2: 97-108 Pickering J F (1992) Verbal explanation of automobile purchase decisions. J Mktg Res 29: 107-13 Punj G N and Staelin R (1983) A model of consumer information search behavior for new automobiles. J Cons Res 9: 366-80. Parmar J S (1987) Consumer preferences for scooters. MBA Research Project Report (Unpublished), Guru Nanak Dev University, Amritsar. Rao A R and Monroe K B (1989) The effect of price, brand name and store name on buyers perceptions of product quality: an integrative review. J Mktg Res 26: 35157. Verhoef C P (2003) Understanding the effect of customer relationship management efforts on customer retention and customer share development. J Mktg 67: 30-45. CR KOTHARI, Research Methodology, New Delhi, New Age Publishers (2006) Dr D D Sharma, Marketing Research, New Delhi, Sultan & Chandr (2005)

QUESTIONNAIRE

Q1. Which of these bikes do you own?

50. 51. 52. 53. 54.

Bajaj Pulsar Honda Unicorn Hero Honda CBZ/ Achiever TVS Apache Any Other

Q2. What was the source of obtaining information about the bike?

55. 56. 57. 58. 59.

Auto Workshops/Mechanics Magazines/ News Papers T.V. Advt. Road Campaigns Word of Mouth

Q3. Who influenced you the most to purchase the bike?

60. 61. 62. 63.

Family Friends Self Opinion Any other (pls. specify)

Q4. Rate the following factors that influence purchase of a bike FACTORS PRICE FUEL EFFICIENCY PICK UP LOOKS/ STYLE BRAND NAME DEALER NETWORK RE-SALE VALUE AFTER SALES SERVICE
MOST IMPORTANT IMPORTANT CANT SAY UNIMPORTANT MOST UNIMPORTANT

COMFORT FINANCE FACILITY TECHNOLOGY Q5. What is the normal fuel efficiency of your bike?

64. 65. 66. 67.

20-30 km/l 31-40km/l 41-50km/l Above 50km/l requirements?

Q6. Which of these bikes is the most effective in meeting the latest technological

68. 69. 70. 71.

Bajaj Pulsar Honda Unicorn Hero Honda CBZ/ Achiever TVS Apache

Q7. Rank the mentioned bikes with respect to the following factors? (Please rank them from 1to5 with 1 as highest and 5 as lowest) Factors Brand image Price Outlook/style Technology Performance Pulsar Achiever Unicorn Apache

Q8. Do you strongly feel that the claims made in the promotional messages are truly reflected in the performance of the bike?

72. 73. 74. 75. 76.

Strongly Agree Agree Cant Say Disagree Strongly Disagree

Q9. What is your level of satisfaction to the following factors as regards to your bike ?

Highly

Satisfied

Neutral

Dissatisfied

Highly

Satisfied
Pick up Appearance/Design Comfort Mileage After sales service Maintenance cost Q 10. What improvements do you want in your bike or future bike?

Dissatisfied

77. 78. 79. 80. 81. 82.

Better Fuel Efficiency Better Pick Up More Styling Riding Comfort Better Pricing Any other

Q11. Are there any frequent price changes by the company in this segment?

83. Yes 84. No 85. Cant say Q12. Does the foreign collaboration of the company improve the brand perception?

86. Yes 87. No 88. Cant say

Demographic characteristics
89. Name 90. Age group

18-25 years 25-30 years 30-40 years

Above 40 years 91. Occupation

Student Business Profession 92. Income

Below 100000 100000-125000 125000-175000 ADDRESS: PHONE NO: