Pioneer institute of professional studies Indore

Synopsis Report on
A COMPARATIVE STUDY OF CUSTOMER SATISFACTION TOWARDS HERO HONDA AND BAJAJ BIKE

Guided by: Prof. Rashmi Farkiya Mba 3rd

Submitted by: Anoop Rai

Vs

INDEX

INTRODUCTION IMPORTANCE OF OCTAPACE CULTURE TYPES OF ORGANIZATIONAL CULTURE LITERATURE REVIEW RATIONALE OF STUDY THE OBJECTIVES OF STUDY RESEARCH METHODLOGY TOOLS FOR DATA COLLECTION DATA ANALYSIS HYPOTHESIS RESEARCH UNIT \ AREA SAMPLE SIZE EXPECTED OUTCOME REFERENCE

OBJECTIVE
To determine the customers satisfaction regarding Hero Honda and Bajaj bikes and to know the perception of customers regarding bikes, to determine the factors influencing the choice of customers regarding bikes.

Indian Two-Wheeler Industry:

India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was the second largest two wheeler manufacturer in the world starting in the 1950s with the birth of Automobile Products of India (API) that manufactured scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The license raj that existed between the1940s to1980s in India, did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a sellers market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. The motorcycle segment had the same long wait times with three manufacturers; Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at that time and took the higher end of the market but, there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian market dynamics from the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies

new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.

BAJAJ Auto limited

Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers they also manufacture three wheelers. The company had started way back in 1945. Initial it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of the Indian milieu and over the years have come to represent the aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales are backed by a network of after sales service and maintenance work shops all over the country. Bajaj Auto has products which cater to every segment of the Indian two wheeler market Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj Discover 125 offers the consumer a great performance without making a big hole in the pocket

Timeline of new releases

1971 - three-wheeler goods carrier 1972 - Bajaj Chetak 1976 - Bajaj Super 1977 - Rear engine Autorickshaw 1981 - Bajaj M-50 1986 - Bajaj M-80, Kawasaki Bajaj KB100 1990 - Bajaj Sunny 1994 - Bajaj Classic 1995 - Bajaj Super Excel 1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw 1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter) 2000 - Bajaj Saffire 2001 - Eliminator, Pulsar 2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar 2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover DTS-i 2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover 2006 - Bajaj Platina 2007 - Bajaj Pulsar-200

Scooters

Bajaj Sunny Bajaj Chetak Bajaj Cub Bajaj Super Bajaj Wave Bajaj Legend Bajaj Krystal

Motorcycles
Kawasaki Eliminator Bajaj Pulsar Bajaj Kawasaki Wind 125 Bajaj Boxer Bajaj CT 100 Bajaj Platina Bajaj Caliber Bajaj Discover Bajaj Avenger Bajaj Pulsar 220 DTS-Fi

New Image
The company, over the last decade has successfully changed its image from a scooter manufacturer to a two-wheeler manufacturer, product range ranging from Scooterettes to Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after successful introduction of a few models in the motorcycle segment. The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

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Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's largest selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are low powered but very fuel efficient.

Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940s and turned into the worlds largest bicycle manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make free wheel bicycle critical components and have diversified into different ventures like product design. The Hero Group philosophy is: To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity. The Hero group vision is to build long lasting relationships with everyone (customers, workers, dealers and vendors). The Hero Group has a passion for setting higher standards and Engineering Satisfaction is the prime motivation, way of life and work culture of the Group. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: We, at Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium. This alliance became one of the most successful joint ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for HHM.
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== Growth == The business growth of Hero Honda has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from the start and that is what has helped them to achieve break-through in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors:

[ Models ]
Hero Honda Splendor Plus Hero Honda Passion Plus Hero Honda Karizma Hero Honda CBZ Hero Honda Super Splendor Hero Honda CD Dawn Hero Honda CD Deluxe Hero Honda Achiever Hero Honda Glamour Hero Honda Ambition Hero Honda "Splendor" Model

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Just-in-Time
The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date.. This is the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle.

Ancillarisation
An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. Employee Policy: Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but also for the immediate family members.

Dealer Network
The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor action in the region. The manufacturing units have a separate department to

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handle dealer complaints and problems and the first response is always given in 24 hours.

Financial Planning
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover.

Quality
Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes.

Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward integration in its manufacturing activities has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader

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Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication. The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customer

RESEARCH METHODOLOGY
Search of knowledge is called RESEARCH. My objective is to determine the customer satisfaction towards Hero Honda and BAJAJ bikes. For this the data has been collected from two sources:-

DATA SOURCE

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1. Primary data: - Primary data is the first hand data which is original in character. For my study a questionnaire is structured / prepared as a primary data source. 2. Secondary data: - I have collected secondary data from two sourcesA . Internet B . Magazine

RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data collection. After setting the objective a questionnaire is structured and filled by the local population of INDORE which has the bikes.

SAMPLING UNIT
It gives the target population that will be sampled. This research was carried in Indore. These were 100 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were presented followed by analysis and interpretation to reach certain conclusions.

LIMITATIONS OF RESEARCH STUDY

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LIMITATIONS

Research work was carried out in INDORE only because of time limit and at present I am pursuing MBA so it is not possible for me to spend a lot time on survey. The sample was collected using connivance-sampling techniques. The views of the people are biased therefore it doesnt reflect true picture.

Q1) Which bike do you have?

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Hero Honda Bajaj Any other

47 38 15

Q2) Which Model do you Have?

Hero Honda Splender Passion Karizma Any other 21 13 7 6

Bajaj CT 100 Discover Pulsar Any other 7 12 11 8

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25 No of Persons 20 15 10 5 0 1 Model Nam e Hero Honda Splender Passion Karizma Any other

14 No of Persons 12 10 8 6 4 2 0 1 Model Nam e Bajaj CT 100 Discover Pulsar Any other

Q3) In which family Income level do you Fall?

100000-200000 200000-300000 300000-400000 above 400000

22 45 23 10

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50 No of Persons 40 30 20 10 0 1 Incom e level 100000-200000 200000-300000 300000-400000 above 400000

Q4) For how long do you own a bike?

0-1 year 1-2 year 2-3 year above 3 year

34 29 26 11

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40 30 No of 20 Persons 10 0 1 No of years 0-1 year 1-2 year 2-3 year above 3 year

Q5) For what purpose do you use your Motor Bike?

Hero Honda Office Purpose Personal purpose Joy Purpose Other 9 13 19 6

Bajaj 4 15 16 3

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20 No of Persons 15 10 5 0 Office Personal Joy Purpose purpose Purpose Purpose Other Hero Honda Bajaj

Q6) How do you come to know about this Motor Bike?

Hero Honda Newspaper 4

Bajaj 2

Television

23

16

Magazine

Friends & Relative

18

19

22

No of Persons

25 20 15 10 5 0 Hero Honda Bajaj Nam e of Com pany New spaper Television Magzine Friends & Relative

Q7) Does Advertisement Influence your decision in choosing a Motor Bike?

Yes No Cant say

87% 5% 8%

8% 5%

Yes No Cant say

87%

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Q8) Do you have full knowledge about Bikes before buying?

Hero Honda

Bajaj

Yes

25

23

No

22

15

30 No of persons 25 20 15 10 5 0 Hero Honda Com pany Nam e Bajaj Yes No

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Q9) Which Factor below Influence your decision?

Hero Honda

Bajaj

Price Mileage Quality Resale Value Status symbol

72% 78% 65% 40% 10%

78% 64% 48% 28% 7%

No of Persons

100% 80% 60% 40% 20% 0% Hero Honda Bajaj Com pany Nam e Price Mileage Quality Resale Value Status symbol

Q10) How would you rate the following factors of Bikes with

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respect to different company?

Hero Honda

Bajaj

Mileage Price Pick up Maintenance Look & Shape Brand Image

74% 68% 70% 58% 85% 53%

72% 65% 80% 62% 80% 55%

100% No of Persons 80% 60% 40% 20% 0% Hero Honda Bajaj Com pany Nam e Mileage Price Pick up Maintenance Look & Shape Brande Image

Q11) If new Bike with good features comes in, then would you like to change your bike?

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Hero Honda

Bajaj

Yes No Cant say

25 No of Persons 20 15 10 5 0

19 17 11

21 14 3

Hero Honda Bajaj

Yes

No View s

Cant say

Q12) which company provides you better service after sales?

35% HERO HONDA 35%

BAJAJ

OTHER

30%

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30%

35%

HERO HONDA BAJAJ OTHER

35%

Q13) Are you satisfy with the model of your bike?

YES NO CANT SAY

55% 34% 11%

11% YES NO 34% 55% CANT SAY

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Q14) which company provides you easy availability of spare parts?

HREO HONDA BAJAJ OTHER

67% 18% 15%

15% HREO HONDA 18% 67% BAJAJ OTHER

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Q15)Are you satisfy with the mileage of your bike?

YES NO CANT SAY

54% 37% 9%

9%

YES 37% 54% NO CANT SAY

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Conclusion
Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 because they prefer stylish looks and rest of the models of Hero Honda are purchased more by daily users who needs more average of bikes than looks. Hero Honda is considered to be most fuel-efficient bike on Indian roads. Service & Spare parts are available throughout India in local markets also. While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. Majority of the respondent had bought their motorcycle more than 3 years. Most of the Hero Honda bikes are used for joy purpose. Majority of the population influenced by advertisement of Hero Honda bikes through television. Customers are very much aware of company and model before purchasing a bike. Mileage of the bike plays an important/influencing role in customer satisfaction. Customers are very much satisfied with the mileage of BAJAJ bikes. Majority of the population is satisfied with the easy availability of spare parts of Hero Honda bikes.

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RECOMMENDATIONS
Bajaj should introduce some more models having more engine power. Hero Honda should think about fuel efficiency in case of upper segment bikes. More service centers should be opened. Maintenance cost and the availability of the spare parts should also be given due importance. They also introduce some good finance/discount schemes for students. The price should be economic.

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QUESTIONNAIRE

NAME: -

CONTACT NO .

AGE;-

OCCUPATION:-

Businessman

Employee

Student

Other

Q1) Which Bike do you have? Hero Honda Bajaj Any Other

Q2) Which Model do you have?

Hero Honda: -

Splendor Karizma

Passion Other

Bajaj: -

CT 100

Discover

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Pulsar

Other

Q3) in which Family Income do you Fall? 100000-200000 300000-400000 200000-300000 Above 400000

Q4) for how long do you own a Bike? 0-1 year 2-3 year 1-2 year above 3 years

Q5) for what purpose do you use your Motor Bike? Office Purpose Joy Purpose Personal Purpose Other

Q6) How do you come to know about this Motor Bike? Newspaper Magazines Television Friends & Relatives

Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say

Q8) Do you have full knowledge about Bikes before buying? Yes No

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Q9) Which factor below influence your decision? Price Resale Value Mileage Status Symbol Quality

Q10) How would you rate the following factors of bikes with respect to different companies? Hero Honda Mileage Price Pick up Maintenance Look/Shape Brand Image Bajaj

Q11) In new bike with good feature comes in, then would you like to change your bikes? Yes No cant say

Q12) which company provides you better service after sales? Hero Honda Bajaj Other

Q13) Are you satisfy with the model of your bike? Yes No Cant say

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Q14) which company provides you easy availability of spare parts? Hero Honda Bajaj Other

Q15)Are you satisfy with the milage of your bike? Yes No cant say

Q16) Any Suggestions for Company

Date:

(Signature)

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BIBLIOGRAPHY

WWW.GOOGLE.COM WWW.BAJAJAUTO.COM WWW.HEROHONDA.COM WWW.AUTOMOBILES.IN WWW.BIKEINDIA.IN

REFERENCE: - BIKE INDIA MEGAZINE

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