A COMPARISON STUDY ON THE TOP THREE TWO WHEELER COMPANIES

IN INDIA
DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION
BY
PRASANTH ALOYSIUS
(08PG0329)
UNDER THE GUIDANCE OF
PROF. EDA BALA!I
FACULTY GUIDE" CUIM
CHRIST UNIERSITY INSTITUTE OF MANAGEMENT
BANGALORE"#$0029
pg. 1
DECLARATION
T%&' &' () *+,(&-. (%/( (%&' ,+'+/,*% 0,)1+*( (&(2+3 4A COMPARISON STUDY ON THE
TOP THREE TWO WHEELER COMPANIES IN INDIA5
&' /6 ),&7&6/2 8),9 */,,&+3 ):( &6 (%+ #
(%
/63 $
(%
(,&;+'(+, )- ;. MBA(2008"20<0) :63+,
(%+ 7:&3/6*+ )- P,)-. +3/ B/2/1&. T%&' 0,)1+*( &' ;/3+ +=*2:'&>+2. /' / 0/,( )- ;.
*:,,&*:2:; /63 8&22 6)( ?+ ':?;&((+3 &6 -:(:,+ () /6. )(%+, :6&>+,'&(. ), &6'(&(:(&)6.
PRASANTH ALOYSIUS
08PG0329
D/(+ @
pg. 2
CERTIFICATE
T%&' &' () *+,(&-. (%/( P,/'/6(% A2).'&:'A '(:3+6( )- C%,&'( U6&>+,'&(. )- M/6/7+;+6(A
B/67/2),+A %/' *);02+(+3 (%&' ,+'+/,*% 0,)1+*( (&(2+3 4A COMPARISON STUDY ON
THE TOP THREE TWO WHEELER COMPANIES IN INDIA5 :63+, ;. 7:&3/6*+
-,); &6 0/,(&/2 -:2-&22;+6( )- (%+ M/'(+,' )- B:'&6+'' A3;&6&'(,/(&)6 3+7,++.
PROF. EDA BALA!I
PROFESSOR AMARBETING DEPT.
CHRIST UNIERSITY INSTITUTE OF MANAGEMENT
BANGALORE
ACBNOWLEDGEMENT
It is with immense satisfaction and pride that, I am completing my Dissertation Project report.
I therefore, would like to stop for a few moments and thank Christ University Institute of
pg. 3
Management, angalore and Prof. !eda alaji for allowing me to take up my Dissertation
Project on comparison study of two wheeler companies in India . I am also very thankful for
his e"tensive support, timely guidance and regular monitoring our progress and providing
valua#le inputs from time to time.
$ sincere thanks to all the respondents, for parting their valua#le time and #eing so patient in
sharing the relevant information. I also e"press my overriding de#ts and thanks to my friends,
without whose help it would have #een impossi#le to complete my project.
%ast #ut not the least, I would like to thank all those concerned people who have directly or
indirectly contri#uted in the completion of this entire dissertation report.
PRASANTH ALOYSIUS
Contents
DECLARATION...................................................................................................... 2
CERTIFICATE........................................................................................................ 3
ACKNOWLEDGEMENT......................................................................................... 4
1.1 Introduction to Indian Two-wheeler Sector:.................................................6
1.2 Evolution of Two-wheeler Industr in India:..................................................!
1.3 "ro#le $hange in Indian Two-%heeler Industr..........................................1&
1.4 'e Earnings (rivers.................................................................................. 11
pg. 4
2.1 COMPANY PROFILE..................................................................................... 14
2.2 )ero )onda *otors +i,ited........................................................................14
2.3 $orporate "ro#le:........................................................................................ 1-
2.4 *ission state,ent:.................................................................................... 16
2.- )E./ )/0(12S *10(1TE:........................................................................1!
2.6 S.%./.T 101+3SIS:..................................................................................... 1!
STRENGTHS:..................................................................................................... 1!
WEAKNESS:....................................................................................................... 1!
2.! HERO HONDAS CORE VALUES..............................................................14
2.5 "roduct range of )E./ )/0(1.................................................................2&
2.4 61717 auto ltd............................................................................................ 24
2.11 61717 18T/9S *ISSI/0:............................................................................2-
2.12 S%/T 1nalsis......................................................................................... 26
2.13 The Inevita:le $hange............................................................................. 2!
2.14 "roduct range of 6a;a;.............................................................................24
2.1- $urrent Situation..................................................................................... 32
$urrent "erfor,ance..................................................................................... 32
2.16 The Industr 1nalsis - <ive <orces 1nalsis-61+...................................32
E=ternal Environ,ent.................................................................................... 32
2.1! "roduct > 1dvertising Strategies /< 61+.................................................34
2.15 Strategies > I,ple,entation...................................................................3-
<*$? 6usiness *odel.................................................................................... 3-
2.14 /ther Strategic Issues.............................................................................36
2.2& Strategies for the /verseas *ar@ets.......................................................3!
2.21 .>(......................................................................................................... 35
2.22 The <uture............................................................................................... 34
2.23 0ew Strategies adopted : 6a;a;.............................................................4&
2.24 )/0(1 */T/.$3$+E > S$//TE. I0(I1 A"vt.B +td.A)*SIB......................41
pg. -
2.2- 1:out )onda *otorccle > Scooter India "vt. +td...................................41
2.26 $/."/.1TE "./<I+E............................................................................... 42
2.2! *ission State,ent................................................................................... 43
2.25 S%/T 1nalsis......................................................................................... 43
2.24 "./(8$T .10?E:.................................................................................... 44
2.3& *ar@et growth and ,ar@et siCe A)*SIB....................................................4!
2.31 Strateg of rivals Ds )*SI.......................................................................45
2.32 Strateg of )*SI...................................................................................... -&
2.34 Strateg adopted : TDS > 6a;a; for increasing sales and countering
growth of )*SI................................................................................................. -&
2.3- .eview of strategies adopted : )onda..................................................-1
3.1 RESEARCH DESIGN.................................................................................... -4
3.2 ST1TE*E0T /< "./6+E*.......................................................................... -4
3.3 )3"/T)ESIS.............................................................................................. --
3.4 1I*S 10( /67E$TIDES...............................................................................--
3.- S1*"+I0? TE$)0IE8E.............................................................................. --
3.6 S1*"+E 80IT............................................................................................. --
3.! S1*"+E SIFE.............................................................................................. -6
3.5 ST1TISTI$1+ (ESI?0.................................................................................. -6
3.4 ".I*1.3 (1T1........................................................................................... -6
3.1& SE$/0(1.3 (1T1.................................................................................... -6
3.11 +I*IT1TI/0S /< ST8(3............................................................................-!
4.1 RESPONDENTS PROFILE..........................................................................-4
4.2 SEG............................................................................................................ -4
4.3 *1.IT1+ ST1T8S........................................................................................ 6&
4.4 /$$8"1TI/0.............................................................................................. 61
4.- 1?E............................................................................................................ 62
4.6 I0$/*E...................................................................................................... 63
pg. 6
-.1 DATA ANALYSIS......................................................................................... 6-
-.2 /%0E.S)I" /< T%/ %)EE+E................................................................6-
-.3 */ST DIE%E( 1(S.................................................................................... 66
-.4 */ST I0<+8E0TI1+ 1(S..........................................................................6!
-.- 6EST .E$1++E( 1(S.................................................................................. 65
-.6 */ST $/**/0 S/8.$E /< 1(S...............................................................64
-.! S/8.$E /< .E+I16+E I0</.*1TI/0 </. "8.$)1SE (E$ISI/0S..............!&
-.5 <1$T/.S %)I$) */TID1TE "8.$)1SI0? (E$ISI/0.................................!2
-.4 ".E<E..E( ".I$E .10?EAin &&&9sB...........................................................!3
-.1& .1TI0? </. D1.I/8S <1$T/.SA1 +E1ST ".E<E..E( 10( ! */ST
".E<E..E(B..................................................................................................... !-
-.11 IS $./SS$)E$'I0? (/0EH.....................................................................!!
6.1 DEMAND AND GROWTH DRIVERS.......................................................!4
"ersonal Inco,e............................................................................................ !4
(e,ograph and Inspiration.........................................................................!4
"enetration +evel........................................................................................... !4
/ther <actors................................................................................................. !4
!.1 FINDINGS................................................................................................ 51
5.1 HYPOTHESIS TESTING........................................................................... 53
4.1 RECOMMENDATIONS..............................................................................5-
Scaling 8p Service $enters.....................................................................5-
<ocus on Eas $redit +ending..................................................................5-
Invest,ent in .esearch and (evelop,ent..............................................5-
<ocus on E=ports and ?lo:al *ar@et.......................................................5-
1&.1 LEARNINGS............................................................................................ 5!
11.1 BIBLIOGRAPHY...................................................................................... 54
12.1 QUESTIONNAIRE................................................................................... 41
pg. !
pg. 5
<.< I6(,)3:*(&)6 () I63&/6 T8)"8%++2+, S+*(),@
&he Indian automotive industry consists of five segments' commercial vehicles( multi)utility
vehicles * passenger cars( two)wheelers( three)wheelers( and tractors. +ith ,,-..,/01 units
sold in the domestic market and ,21,2/3 units e"ported during the first nine months of
45.66,, the industry 7e"cluding tractors8 marked a growth of 91: over the corresponding
previous. &he two)wheeler sales have witnessed a spectacular growth trend since the mid
nineties.
India is the second largest producer and manufacturer of two)wheelers in the world. Indian
two)wheeler industry has got spectacular growth in the last few years. Indian two)wheeler
industry had a small #eginning in the early 26;s. &he $utomo#ile Products of India 7$PI8
started manufacturing scooters in the country.
pg. 4
ikes are a major segment of Indian two wheeler industry, the other two #eing scooters and
mopeds. Indian companies are among the largest two)wheeler manufacturers in the world.
<ero <onda and ajaj $uto are two of the Indian companies that top the list of world
companies manufacturing two)wheelers.
&he two)wheeler market was opened to foreign companies in the mid 3/-6s. &he openness of
Indian market to foreign companies lead to the arrival of new models of two)wheelers into
India. =asy availa#ility of loans from the #anks, relatively low rate of interest and the
discount of prices offered #y the dealers and manufacturers lead to the increasing demand for
two)wheeler vehicles in India. &his lead to the strong growth of Indian automo#ile industry.
<.2 E>)2:(&)6 )- T8)"8%++2+, I63:'(,. &6 I63&/@
&wo)wheeler segment is one of the most important components of the automo#ile
sector that has undergone significant changes due to shift in policy environment. &he two)
wheeler industry has #een in e"istence in the country since 3/22. It consists of three segments
vi>. scooters, motorcycles and mopeds. In India there are some M?C@s and Indian company
dealing in automo#ile sector. &he main key players who are dealing in this sector are <ero
<onda, ajaj, 5amaha, <onda, and &!A. <ero <onda is the #iggest player in this sector in
India as well as in the world and playing a very important role in two wheeler automo#ile
sector. <ero <onda, ajaj and &!A are the Indian companies and 5amaha * <onda are
international automo#ile #rand.
pg. 1&
ajaj is the first Indian two wheeler automo#ile company in the market since
3/92 with the name MBs acharj trading corporation private limited. In 3/2/ MBs acharj
trading corporation private limited change its name as ajaj $uto %td. ajaj $uto o#tains
license from the Covernment of India to manufacture two) and three)wheelers vehicles in
3/2/.
<ero <onda Motors %imited was esta#lished in 3/-9, as a joint venture
#etween India;s <ero Croup 7world;s largest #icycle manufacturers8 and Dapan;s <onda Motor
Company. $nd created the world;s single largest two wheeler company and also one of the
most successful joint ventures worldwide. During the -6s, <ero <onda #ecame the first
company in India. Ever 3/ million <ero <onda two wheelers running on Indian roads today.
&!A Motors is the third largest company in the two)wheeler industry with a
market share of 30:. Infect, it is the only Indian company without a foreign colla#oration in
the two)wheeler industry. +hen the company opted out of the colla#oration with Au>uki in
.66., many #elieved that &!A was headed towards e"tinction. ut the company proved the
doomsayers wrong and came out with a very successful F&!A !ictor;. &!A Motors %td.
originally incorporated in 3/-. to manufacture two)wheelers in colla#oration with Au>uki
Motors of Dapan, &!A was one of the leaders in two)wheeler industry.
5amaha Motor Corporation is the auto mo#ile company of Dapan
73/218 which works in India since 3/22 and providing latest technology in India from last
two decades. 5amaha Motor India was incorporated in august .663 as a 366: su#sidiary of
5amaha motor corporation, Dapan
pg. 11
<onda motors of Dapan is not a new name in the two wheeler scenario in the
country, they were in a tie up with the 4irodias owned Ginetic group. <owever in the late /6s
they parted ways after pro#lems arose over issues like introduction of new models,
advertising e"penditure, marketing strategies and other related issues. In the mid -6 <onda
motors of Dapan joined hands with the largest #icycle maker of India the <ero cycles to create
<ero <onda which in a couple of decades or so have gone on to #ecome the single largest
motorcycle company in the world. &hough <onda has come on its own on the Indian market
yet it will #e providing technological support to <ero <onda for the ne"t ten years. &hus
presenting a uniHue situation in which the company will #e in direct competition with the
company which it has #een associated for nearly two decades. <onda Motorcycles and
Acooters India limited, a 366: su#sidiary of <onda motor company Dapan eventually entered
the Indian market with <onda Unicorn in .669.
pg. 12
<.3 P,)-&2+ C%/67+ &6 I63&/6 T8)"W%++2+, I63:'(,.
&he demand shift from scooters to motorcycles in the 3//6s was without parallel in any
compara#le product category in India. &his was mainly attri#uted to the change in customers;
preference towards fuel)efficient and aesthetically appealing models, which scooter
manufacturers failed to provide. &he delayed launch of new, advanced scooter models, fear of
four)stroke scooters #eing prone to increased skidding risks and vi#rations, and the difficulty
of maintenance also contri#uted to this shift.
Interestingly, the growth in the motorcycle segment was mainly driven #y the demand from
rural and semi)ur#an consumers. $n estimated 06: of the demand for motorcycles came
from rural and semi)ur#an customers. &he rise in their disposa#le incomes on account of
good monsoons in the 3//6s provided the normally conservative rural and semi)ur#an
customers with e"tra money that induced them to e"periment with new, innovative products.
pg. 13
S%&-( -,); S*))(+, () M)(),*.*2+
Y+/, T)(/2 I6 C000 O>+,/22 G,)8(%
S*))(+, M)(),*.*2+ M)0+3
?o. : ?o. : ?o. :
3//1 3,261.10 )0.96 ,6/.,1 9,.. 1,/.60 .2.. 939.2, .,.0
3//9 3,,,6... 3,.,2 -96.3, 9,.2 9,..2- .0., 92,.9, .2.-
3//2 .,.6/..1 .9.-6 3,611.2. 90.- 02..63 ./.2 2.1.,6 .1.,
3//0 .,006.69 .6.93 3,..1.91 90.6 -6/.21 16.9 0.,.6- .1.0
3//, .,/01.9/ 33.93 3,163.62 91./ /,-.0- 11.6 0-1.,0 .1.3
3//- 1,69..-2 ..0- 3,.0..,6 93.2 3,313.13 1,.. 09-.-9 .3.1
3/// 1,961.91 33.-2 3,1.2.-, 1/.6 3,1/2.00 93.6 0-3./6 .6.6
.666 1,,92.22 )6.-6 /63.-- .9.6 .,320.61 2-.6 0-,.09 3-.6
Source: (SIAM). No. Number of Units (in '000)
$dvanced technology, larger wheel#ase, higher ground clearance and the a#ility to ride on
#ad roads with less effort and less danger of skidding and decreased maintenance cost were
the other factors that encouraged customers to choose motor#ikes over other two)wheelers.
<.D B+. E/,6&67' D,&>+,'
elow are the key factors, which strongly affect the auto industry' )
G)>+,6;+6( 0)2&*. &;0/*( )6 0+(,)2 0,&*+'@ Petrol prices determine the running cost of
twoBthree wheelers e"pressed in Iupees per kilometer.
Petrol prices are the highest in India as CEI su#sidi>es kerosene and diesel. ut with the
recent change in CEI policy to reduce the su#sidy, the prices of petrol will remain constant at
the current prices. &his will have a positive effect on purchases of twoBthree wheelers.
I;0,)>+;+6( &6 3&'0)'/?2+ &6*);+@ +ith the increase in salary levels, due to entry of
multinationals following li#erali>ation process and fifth pay commission, the disposa#le
income has improved e"ponentially over the years. &his will have multiplier effect on
demand for consumer dura#les including two)wheelers.
C%/67+' &6 0,&*+' )- '+*)63"%/63 */,'@ &he second hand car prices of small cars have
come down sharply in the recent past. &his will shift the demand from higher)end two)
wheelers to cars and affect the demand for two)wheelers negatively. $ further drop in second)
pg. 14
hand car prices will lead to pressure on the two)wheeler majors who plan to release higher)
end scooters and motorcycles.
I;02+;+6(/(&)6 )- ;/'' (,/6'0),( '.'(+;@ Many states have planned to implement mass
transport systems in state capitals in the future. &his will have negative impact on demand for
two)wheelers in the long run. ut taking into account the delays involved in implementation
of such large infrastructure projects the demand to #e affected only five to seven years down
the line.
A>/&2/?&2&(. )- *,+3&( -), >+%&*2+ 0:,*%/'+@ &he availa#ility and cost of finance affects the
demand for two) and three)wheelers as the trend for increased credit purchases for consumer
dura#les have increased over the years. &herefore, any change with respect to any of these
two parameters as a result of change in II policy has to #e closely watched to assess the
demand for two) and three)wheelers.
pg. 1-
2.< COMPANY PROFILE
pg. 16
C);0/6. 0,)-&2+
J<eroK is the #rand name used #y the Munjal #rothers for their flagship company <ero
Cycles %td. $ joint venture #etween the <ero Croup and <onda Motor Company was
esta#lished in 3/-9 as the <ero <onda Motors %imited $t Dharuhera India. Munjal family
and <onda group #oth own .0: stake in the Company. In .636, it was reported that <onda
planned to sell its stake in the venture to the Munjal family.
During the 3/-6s, the company introduced motorcycles that were popular in India for their
fuel economy and low cost. $ popular advertising campaign #ased on the slogan ;4ill it ) Ahut
it ) 4orget it; that emphasised the motorcycle;s fuel efficiency helped the company grow at a
dou#le)digit pace since inception. &he technology in the #ikes of <ero <onda for almost .0
years 73/-9L.6368 has come from the Dapanese counterpart <onda
M36N
<ero MotoCorp has three manufacturing facilities #ased at Dharuhera, Curgaon in <aryana
and at <aridwar in Uttarakhand. &hese plants together are capa#le of churning out 1 million
#ikes per year.
M33N
<ero MotoCorp has a large sales and service network with over 1,666
dealerships and service points across India. <ero <onda has a customer loyalty program since
.666,
M3.N
called the <ero <onda Passport Program.
&he company has a stated aim of achieving revenues of O36 #illion and volumes of 36 million
two)wheelers #y .630)3,. &his in conjunction with new countries where they can now
market their two)wheelers following the disengagement from <onda, <ero MotoCorp hopes
to achieve 36 per cent of their revenues from international markets, and they e"pected to
launch sales in ?igeria #y end).633 or early).63.. In addition, to cope with the new demand
over the coming half decade, the company was going to #uild their fourth factory in Aouth
India and their fifth factory in +estern India. &here is no confirmation where the factories
would #e #uilt.
M31N
E+3&(F H&'(),.
<ero MotoCorp was started in 3/-9 as <ero <onda Motors %td.
M9N
14-6 -- <or,ation of )ero $cles in +udhianaA,a;estic auto li,itedB
14!- -- )ero $cles :eco,es largest :iccle ,anufacturer in India.
1453 -- 7oint $olla:oration 1gree,ent with )onda *otor $o. +td. 7apan
signed Shareholders 1gree,ent signed
1454 -- )ero )onda *otors +td. incorporated
145- -- )ero )onda ,otorccle $( 1&& launched.
1454 -- )ero )onda ,otorccle Slee@ launched.
1441 -- )ero )onda ,otorccle $( 1&& SS launched.
1444 -- )ero )onda ,otorccle Splendor launched.
144! -- )ero )onda ,otorccle Street launched.
1444 -- )ero )onda ,otorccle $6F launched.
pg. 1!
2&&1 -- )ero )onda ,otorccle "assion and )ero )onda 7o launched.
2&&2 -- )ero )onda ,otorccle (awn and )ero )onda ,otorccle
1,:ition launched.
2&&3 -- )ero )onda ,otorccle $( (awnI )ero )onda ,otorccle
SplendorI )ero )onda ,otorccle "assion "lus and )ero )onda ,otorccle
'ariC,a launched.
2&&4 -- )ero )onda ,otorccle 1,:ition 13- and )ero )onda ,otorccle
$6FJ launched.
2&&- -- )ero )onda ,otorccle Super SplendorI )ero )onda ,otorccle
$( (elu=eI )ero )onda ,otorccle ?la,ourI )ero )onda ,otorccle
1chiever and )ero )onda Scooter "leasure.
2&&! -- 0ew *odels of )ero )onda ,otorccle Splendor 0G?I 0ew *odels
of )ero )onda ,otorccle $( (elu=eI 0ew *odels of )ero )onda
,otorccle "assion "lus and )ero )onda ,otorccle )un@ launched.
2&&5 -- 0ew *odels of )ero )onda ,otorccles "leasureI $6F Gtre,eI
?la,ourI ?la,our <i and )ero )onda ,otorccle "assion "ro launched.
2&&4 -- 0ew *odels of )ero )onda ,otorccle 'ariC,a:'ariC,a - F*. and
li,ited edition of )ero )onda ,otorccle )un@ launched
2&1& -- 0ew *odels of )ero )onda ,otorccle Splendor "ro and New )ero
)onda ,otorccle )un@ and New )ero )onda *otorccle Super Splendor
launched.
2&11 -- 0ew *odels of )ero )onda ,otorccles ?la,ourI ?la,our <II $6F
Gtre,eI 'ariC,a launched.
0ew licensing arrange,ent signed :etween )ero and )onda.
$ugust)) <ero and <onda part company, thus forming <ero MotoCorp and <onda moving
out of the <ero <onda joint venture. ?ovem#er)) <ero launched its first ever Eff Ioad ike
?amed <ero PImpulseP.
E+3&(F T+,;&6/(&)6 )- H)63/ 1)&6( >+6(:,+
*ain article: )ero )onda split
In Decem#er .636, the oard of Directors of the <ero <onda Croup have decided to
terminate the joint venture #etween <ero Croup of India and <onda of Dapan in a phased
manner. &he <ero Croup would #uy out the .0: stake of the <onda in D! <ero <onda.
M39N

Under the joint venture <ero Croup could not e"port to international markets 7e"cept Ari
%anka8 and the termination would mean that <ero Croup can now e"port. Aince the
#eginning, the <ero Croup relied on their Dapanese partner <onda for the technology in their
#ikes. Ao there are concerns that the <ero Croup might not #e a#le to sustain the performance
of the Doint !enture alone.
M32N
pg. 15
E+3&(F H+,) M)()C),0
&he new #rand identity and logo, <ero MotoCorp, was developed #y the %ondon firm +olff
Elins.
M30N
&he logo was revealed on / $ugust .633 in %ondon, the day #efore the third test
match #etween =ngland and India.
M30N
<ero MotoCorp can now e"port to %atin $merica, $frica and +est $sia.
M30N
<ero is free to use
any vendors for its components instead of just <onda)approved vendors.
M30N
E+3&(F C);0/6. 0+,-),;/6*+
During the fiscal year .66-)6/, the company sold 1., million #ikes, a growth of 3.: over
last year. In the same year, the company had a market share of 2,: in the Indian market.
M3,N

<ero <onda sells more two wheelers than the second, third and fourth placed two)wheeler
companies put together.
M36N
<ero <onda;s #ike <ero <onda Aplendor sells more than one
million units per year.
M3-N
$s early as in 3/06@s very few Indian #icycle manufacturers were interested in
e"ports. <owever, the hero groups foray into the overseas markets in 3/01 pioneered Indian
e"ports in the #icycle segment. It was more prompted essentially #y the need to remain
attuned to the glo#al marketplace. +hile initial e"ports were restricted to $frica and the
middle east, today more than 26: of the e"ports from <ero Cycles %td. Meet the demands of
sophisticated markets in =urope and $merica. &his is primarily #ecause of appropriate
product development and e"cellent Huality that hero offers..
<ero <onda has grown like no other company in the auto #usiness. Aeveral
times in the path, savvy o#servers have insisted that it has grown just too #ig and that no
company its si>e can continue to show growth rates. ut <ero <onda has ignored that
opinion and continued growing at the place it has set many years ago.
<ero <onda today faces more competitor than it has ever in the history. ?ow
that is the undisputed two wheeler ?umero Uno in the country. =very single two wheeler
manufacturer in India if looking market share away from it. More over for the first time there
are so many four) stroke challengers in the market. $nd <ero <ondas #est selling products
are ageing.
2.3 C),0),/(+ P,)-&2+@
pg. 14
&he joint venture #etween India;s <ero Croup and <onda Motor Company, Dapan has
not only created the world;s single largest two wheeler company #ut also one of the most
successful joint ventures worldwide.
During the -6s, <ero <onda #ecame the first company in India to prove that it was
possi#le to drive a vehicle without polluting the roads. &he company introduced new
generation motorcycles that set industry #enchmarks for fuel thrift and low emission. $
legendary ;4ill it ) Ahut it ) 4orget it; campaign captured the imagination of commuters across
India, and <ero <onda sold millions of #ikes purely on the commitment of increased mileage
Ever 3/ million <ero <onda two wheelers tread Indian roads today. &hese are almost
as many as the num#er of people in 4inland, Ireland and Aweden put togetherQ
<ero <onda has consistently grown at dou#le digits since inception( and today, every
second motorcycle sold in the country is a <ero <onda. =very 16 seconds, someone in India
#uys <ero <onda;s top )selling motorcycle L Aplendor. &his festive season, the company sold
half a million two wheelers in a single monthRa feat unparalleled in glo#al automotive
history.
<ero <onda #ikes currently roll out from two glo#ally #enchmarked manufacturing
facilities #ased at Dharuhera and Curgaon in <aryana. &hese plants together are capa#le of
churning out 1./ million #ikes per year. $ third state of the art manufacturing facility at
<ardwar in Uttranchal will soon #e commissioned to cope with sustained customer demand.
<ero <onda;s e"tensive sales and service network now spans over 1666 customer
touch points. &hese comprise a mi" of dealerships, service and spare points, spare parts
stockiest and authori>ed representatives of dealers located across different geographies.
pg. 2&
<ero <onda values its relationship with customers. Its uniHue CIM initiative ) <ero <onda
Passport Program, one of the largest programs of this kind in the world, has over 1 million
mem#ers on its roster. &he program has not only helped <ero <onda understand its
customers and deliver value at different price points, #ut has also created a loyal community
of #rand am#assadors.

<aving reached an unassaila#le pole position in the Indian two wheeler market, <ero
<onda is constantly working towards consolidating its position in the market place. &he
company #elieves that changing demographic profile of India, increasing ur#ani>ation and
the empowerment of rural India will add millions of new families to the economic
mainstream. &his would provide the growth #allast that would sustain <ero <onda in the
years to come. $s rijmohan %all Munjal, the Chairman, <ero <onda Motors succinctly
points out, P+e pioneered India@s motorcycle industry, and it;s our responsi#ility now to take
the industry to the ne"t level. +e;ll do all it takes to reach there.;;
2.D M&''&)6 '(/(+;+6(@
<ero <onda@s mission is to strive for synergy #etween technology, systems and human
resources, to produce products and services that meet the Huality, performance and price
aspirations of its customers. $t the same time maintain the highest standards of ethics and
social responsi#ilities.
&his mission is what drives <ero <onda to new heights in e"cellence and helps the
organi>ation forge a uniHue and mutually #eneficial relationship with all its stake holders.
pg. 21
2.# HERO HONDACS MANDATE@

<ero <onda is a world leader #ecause of its e"cellent manpower, proven
management, e"tensive dealer network, efficient supply chain and world)class products with
cutting edge technology from <onda Motor Company, Dapan. &he teamwork and commitment
are manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status
2.$ S.W.O.T ANALYSIS@
STRENGTHS:
<ero <onda introduced 4irst stroke #ike in the Indian market.
<ero <onda gives -6 GmB%iter $vg.
<uge sale network 71266 Dealers8.
etter sale service.
It has the highest share in automo#ile sector.
It has a good #rand image.
It gives #etter service for customers.
est customer preference.
De#t eHuity ratio is only 6.3.
&he company has clarified a#out its intention of setting a third plant in addition to its
e"isting two plants. &he company has em#arked upon a green field e"pansion plan
and has earmarked Is . #n for the same. It should #e noted that the company has a
strong cash flow position( it generated Is / #n from operation in 4569 and is
virtually a de#t free company.
WEEKNESS:
Auppose to #e very sophisticated.
?ot fit for ruler India.
&hey have #ig gap #etween cu#ic capacities of its products.
Its market share is reducing from last few years.
pg. 22
Apare parts are too costly.
OPPOURTUNITIES:
<ero <ondas the first manufacture to launch eco friendly #ikes with 9)stroke engines.
&hey have attained a stronger good will and popularity in the industry and the
consumers.
&hey should go in new segments of #ikes.
&here is large no. of young consumers in the market. Company has to focus on them.
&hey have #ig opportunities in heavy #ike segments.
$s government polices are amended against pollution in metro cities, <ero <onda
#eing 9 stroke #ike manufacture have great opportunities to e"plore its new
innovations and technologies.
THREATS:
Main threats to <ero <onda are their competitors like')
o ajaj $uto %td.
o &!A motors %td.
o 5amaha Motors India.
o <onda motorcycle and scooter India.
&he cost of the product is very high in comparison to other companies.
Decreasing market share.
pg. 23
2.G HERO HONDAS CORE ALUES
Iespect for <uman eings.
Is a responsive organi>ationS
Is a #oundary less organi>ationS
Is striving for e"cellence.
Provide fearless, enjoya#le working environment.
Is self)reliant.
Providing learning environment.
Is a caring organi>ationS
=na#les relationship #uildings.
Prompts transparency * trust.
Is creativity promoting.
Is performance orientedS
pg. 24
2.8 P,)3:*( ,/67+ )- HERO MOTO CORP
Scooters
H+,)H)63/ P2+/':,+
Motorcycles
CD Dawn
CD Delu"e
Aplendour T
Aplendour ?UC
Passion pro
Passion plus
pg. 2-
H+,) H)63/ P2+/':,+
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .662 )present
P,&*+ Is. 1,//6
E67&6+ 36. cc, ,#hpV ,666 rpm,
torHue 6.,- kg) m V2666 rpm
Auper Aplendour
Clamour
Clamour PCM 43
$chiever
CW U&I=M=
<U?G
Gari>ma
Gari>ma WMI
F+/(:,+' )- / -+8 ?&9+'
-,); /?)>+ ;+6(&)6+3
2&'( -,); HERO HONDA
/,+ /' -)22)8'..
CD D/86
CD D+2:=+
pg. 26
CD D/86
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .661)present
P,&*+ Is. 1,//6
E67&6+ /,.. cc, ,., psV ,266 rpm, torHue6.,,
kg )m V0666 rpm
CD D+2:=+
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .66,)present
P,&*+ Is. 96,666
E67&6+ /,.. cc, ,., psV ,266 rpm,
torHue6.,, kg )m V0666 rpm
S02+63), H
H:69
pg. 2!
S02+63), H
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .661)present
P,&*+ Is. 96,966
E67&6+ /,.. cc, ,., psV -666 rpm,
torHue,./2 ?)m V2666 rpm
H:69
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .66,)present
P,&*+ Is. 01,666
E67&6+ 326 cc, 39.9 psV -266 rpm,
torHue3..- ?)m V0266 rpm
B/,&I;/
JMR

2.9 BA!A! /:() 2(3
Aince 3/-0, there is a technical tie)up of ajaj $uto %td. with Gawasaki <eavy
Industries of Dapan to manufacture state)of)art range of latest two)wheelers in India. &he D!
has already given the Indian market the G series, 9A and 9A Champion, o"er, the Cali#er
series, and +ind3.2
Gawasaki <eavy Industries is a 4ortune 266 company with a turnover of UAD 36
#illion 7Is. 92,-96 crore8. It has crafted new technologies for more than hundred years. &he
pg. 25
B/,&I;/ JMR
M/6:-/*(:,+, <ero <onda motorcycle %td.
P,)3:*(&)6 .66/)present
P,&*+ Is. /3,666
E67&6+ ..1 cc, 3,.0#hpV ,666 rpm,
torHue3-.12 ?)m V0666 rpm
technologies of G<I have redefined space systems, aircrafts, jet engines, ships, locomotive,
energy plants, automation system, construction machinery, and of course high relia#ility two)
wheelers
G<I has given the world its legendary series of 066)3.66cc ?inja and 3066 !ulcan
#ikes. Atraight from its design #oards, the Gawasaki ajaj =liminator, India;s first real cruiser
#ike, redefines the pleasure of P#ikingP in looks as well as performance.
2.<0 C),0),/(+ P,)-&2+
;Inspiring Confidence,; the tagline, has #uild up confidence, through e"citement
engineering, not only to domestic consumers #ut also internationally. =sta#lished just eight
decades #ack in 3/.0 #y Damnalal ajaj, the company has #een vested with India;s largest
e"porter of two and three wheelers, 3/0,,36 units in .669)62, a great .0 per cent jump over
the previous year.
ajaj $uto %td. sales have increased #y appro"imately .3 per cent in the year .669)
62, which e"ceeds Is 02.9 #illion, a record in the history of the company. &he gross
operating profit stands at Is. /.1 #illion, again a record. &he profits after ta" of the $% are
close to Is. ,., #illion, and the pre)ta" return on operating capital is at an impressive -6 per
cent.
&he strength of the company is its Huality products, e"cellence in engineering and
design, and its a#ility to delight the customers. &he Pulsar, introduced in ?ovem#er .669, is
continually dominating the premium segment of the motorcycle market, helping to maintain
the market superiority. Discover D&Ai, one more successful #ike on Indian roads, is in the
;value; segment of the motorcycle market. It incorporates a high degree of power with fuel
efficiency of a 366 cc motorcycle.
pg. 24
$% is committed to prevention of pollution, continual improvement of environment
performance and compliance with all environmental legislation and regulations. &hey always
#elieve in providing the customer ;value for money; and keep an special eye upon Huality,
safety, productivity, cost and delivery.
2.<< BA!A! AUTOS MISSION@
+e at ajaj $uto continue to firmly #elieve in providing the customer !alue for
money, for years through our products and services. &his we shall maintain and improve,
In our decision making, Huality, safety and service will #e given as much
consideration as productivity, cost and delivery.
Xuality shall #e #uilt into every aspect of our work life and #usiness operations.
Xuality improvements and customer satisfaction shall #e the responsi#ility of every
employee.
2.<2 SWOT A6/2.'&'
%et;s analy>e the position of ajaj in the current market set)up, evaluating its strengths,
weaknesses, threats and opportunities availa#le.
Strengths
<ighly e"perienced management.
pg. 3&
Product design and development capa#ilities.
="tensive I * D focus.
+idespread distri#ution network.
<igh performance products across all categories.
<igh e"port to domestic sales ratio.
Creat financial support network 74or financing the automo#ile8
<igh economies of scale.
<igh economies of scope.
Weaknesses
<asn;t employed the e"cess cash for long.
Atill has no esta#lished #rand to match <ero <onda;s Aplendor in commuter segment.
?ot a glo#al player in spite of huge volumes.
?ot a glo#ally recogni>a#le #rand 7unlike the D! partner Gawasaki8
Opportn!t!es
Dou#le)digit growth in two)wheeler market.
Untapped market a#ove 3-6 cc in motorcycles.
More maturity and movement towards higher)end motorcycles.
&he growing gearless trendy scooters and scooterette market.
Crowing world demand for entry)level motorcycles especially in emerging markets
pg. 31
Threats
&he competition catches)up any new innovation in no time.
&hreat of cheap imported motorcycles from China.
Margins getting sHuee>ed from #oth the directions 7Price as well as Cost8

2.<3 T%+ I6+>&(/?2+ C%/67+
ajaj on internal analysis found that it lacked L
3. &he technical e"pertise to deliver competitive goods.
.. &he design know)how.
1. $nd the immediate ina#ility to support the onslaught of competitors.
$ll these forced ajaj to look for an international partner who could #ring in
technology and also offer some #asic platforms to #e manufactured and marketed in India.
Gawasaki of Dapan is a world)renowned manufacturer of high performance #ikes. ajaj
entered into a strategic tie)up with Gawasaki in late 3//6s to enhance its product line and
knowledge up)gradation to support long)term strategies.
&his served the purpose of sustaining the market competition for a while. 4rom 3//0
to .666, ajaj invested hugely in infrastructure while simultaneously developing product
design and innovation capa#ilities, which is the prime reason #ehind the energetic ajaj of
pg. 32
.3st century. ajaj introduced a slew of products right from entry)level motorcycle to the
high premium segment right from .663 onwards, and since then its raining success all the
way for ajaj.
%ast Huarter, ajaj had impressive performance growing at a rate of .6:T when the
largest manufacturer grew at just 0:. &his stands a testimony to the various important
strategic decisions over the past decade.
2.<D P,)3:*( ,/67+ )- B/1/1
Motorcycles'
PU%A$I 312 %A
PU%A$I 326 D&A)i
pg. 33
PU%A$I 3-6 D&A)i
PU%A$I ..6 D&A)i
DIACE!=I 312 D&A)i
DIACE!=I D&A)i
P%$&I?$ 3.2
P%$&I?$ 366
$!=?C=I .66 D&A)i
G$+$W$GI ?I?D$ .26I
F+/(:,+' )- / -+8 ?&9+' -,); /?)>+ ;+6(&)6+3 2&'( -,); BA!A! /,+ /' -)22)8'..
PU%A$I
..6 D&A)i

pg. 34
B/1/1 P:2'/, 220 DTS"&
M/6:-/*(:,+, ajaj $uto
P,)3:*(&)6 .66-)present
P,&*+ Is. ,-,.66
E67&6+ ..6 cc ,.3.69 V -266 7Ps V IPM8
3/.3. V ,666 7?m V IPM8
DIACE!=I
312 D&A)i
P%$&I?$
3.2 cc
pg. 3-
B/1/1 D&'*)>+, DTS"&
M/6:-/*(:,+, ajaj $uto
P,)3:*(&)6 .662)present
P,&*+ Is.9,666)9/.66
E67&6+
312 CC ,/.09kw 731.36 ps8 V
-266rpm,33.-- nm V 0266 rpm B 3..3 kgm
B/1/1 P2/(&6/
M/6:-/*(:,+, ajaj $uto
P,)3:*(&)6 .660)present
P,&*+ Is. 1-0.3
E67&6+ 3.2CC,-.2PA
V,666rpm,36?MV9666rpm.
B/1/1 A>+67+, DTS"&
M/6:-/*(:,
+,
ajaj $uto
P,)3:*(&)6 .662)present
P,&*+ Is. 09,2.9
E67&6+ .66cc, 3,.23 PA V -666 rpm
30.,- ?m V 0666 rpm
$!=?C=I .66 D&A)i

2.<# C:,,+6( S&(:/(&)6
C:,,+6( P+,-),;/6*+.
$% is currently outperforming the industry growth rate in two)wheeler segment with
1.: growth in year .669)62 vBs industry growth of 3/:.
Market share in Motorcycles is improving with every passing year. It has also increased
from .-: in .669)62 to 13: in .662)60.
$nnual turnover for the year .662)60 is Is. -3.60 #illion vBs Is. 01..1 #illion a year
#efore ) an increase of .-: which is very healthy.
pg. 36
$% has significant presence in all the three #asic segments ) Price Aegment, !alue
Aegment and Performance Aegment ) and has #een showing increased sales in all the
segments over years.
esides this, $% is a market leader in two)wheeler e"ports and it consists a great chunk of
there overall revenues. Currently, $% is selling over 3 lac motorcycles annually in Ari
%anka, further, they are commanding 26: market share in Central $merica.
2.<$ T%+ I63:'(,. A6/2.'&' " F&>+ F),*+' A6/2.'&'"BAL
E=(+,6/2 E6>&,)6;+6(
I63:'(,.@ $utomo#iles' &wo +heelers
S+7;+6('@ Presence in all segments
E6(,. B/,,&+,'@
=ntry #arriers are high.
&he market runs on high economies of scale and on high economies of scope.
&he need for technical e"pertise is high.
Ewning a strong distri#ution network is important and is very costly.
$ll these make the #arrier high enough to #e a deterrent for new entrants.
S:002&+, B/,7/&6&67 P)8+,@
Auppliers of auto components are fragmented and are e"tremely critical for this industry since
most of the component work is outsourced. Proper supply chain management is a costly yet
critical need.
B:.+,C' B/,7/&6&67 P)8+,@
uyers in automo#ile market have more choice to choose from and the increasing
competition is driving the #argaining power of customers uphill. +ith more models to choose
from in almost all categories, the market forces have empowered the #uyers to a large e"tent.
pg. 3!
I63:'(,. R&>/2,.@
&he industry rivalry is e"tremely high with any product #eing matched in a few months #y
competitor. &his instinct of the industry is primarily driven #y the technical capa#ilities
acHuired over years of gestation under the technical colla#oration with international players.
S:?'(&(:(+'@
&here is no perfect su#stitute to this industry. $lso, if there is any su#stitute to a two)wheeler,
ajaj has presence in it. Cars, which again are a mode of transport, do never directly compete
or come in consideration while selecting a two)wheeler, cycles do never even compete with
the low entry level moped for even this choice comes at a comparatively higher economic
potential.
Aummari>ing the industry analysis, it can #e said that the two)wheeler market is attractive as
it scores well on three out of five categories
2.<G P,)3:*( K A3>+,(&'&67 S(,/(+7&+' OF BAL
&he focus of $% off late has #een on providing the #est of the class models at competitive
prices. Most of the ajaj models come loaded with the latest features within the price #and
accepta#le #y the market. $% has #een the pioneer in stretching competition into providing
latest features in the price segment #y updating the low price #ikes with the latest features
like disk)#rakes, anti)skid technology and dual suspension, etc.
$% adopted different marketing strategies for different models, few of them are discussed
#elow' )
B/8/'/9& DS " 4irst attempt #y #ajaj to make a mark in the motorcycle segment. &he target
customer was the father in the family #ut the target audience of the commercial was the son
pg. 35
in the family. &he time at which Gawasaki 9A was launched <ero <onda was the market
leader in fuel)efficient #ikes and 5amaha in the performance #ikes.
&he commercial of Gawasaki 9A had the punch line PGyun <eroP means Pnow what heroP
which reflected the aggressiveness in the marketing front #y the company.
B)=+, " It took the reins from where the Gawasaki 9A left. &arget was the rural population
and the price sensitive customer. o"er marketed as a value for money #ike with great
mileage. %arger wheel#ase, high ground clearance and high mileage were the selling factors
and it was in direct competition to <ero <onda Dawn and Au>uki MU366.
C/2&?+, " &he focus for the Cali#er 332 was youth. $nd though ajaj made the #ike look
#igger and feel more powerful than its predecessor 7characteristics that will attract the
average, .2)plus, e"ecutive segment #ike #uyer8, its approach towards advertising is even
more radically different this time around. ajaj gave the mandate for the ad campaign to
%owe, picking them from the cliHue of three agencies that do promos for the company 7the
other two #eing %eo urnett and E*M8. Coing #y the initial market response, the campaign
was clearly a hit in the 2)36 years age #racket. Ao, the teaser campaign and the emphasis on
the Cali#er 332 #eing a `Hoodibabaa' #ike placed it as a trendy motorcycle for the college)
goers and the .2 plus e"ecutives #oth at the same time.
P:2'/, " Pulsar was launched in direct competition to the <ero <onda;s ;CW; model in 326
cc plus segment. &he campaign #eared innovative punch line of PDefinitely MaleP
positioning Pulsar to #e a masculine)looking model with an appeal to the performance
sensitive customers. &he Pulsar went one step ahead of <ero <onda;s ;CW; and launched a
twin variant of Pulsar with the 3-6 cc model. &he model was a great success and has already
crossed 3 million mark in sales.
D&'*)>+, " &he same D&AI technology of Pulsar e"tended to 3.2 cc Discover was a great
success. +ith this, ajaj could reali>e its success riding on the #ack of technological
innovation rather than the joint venture way followed #y competitors to gain market share.
pg. 34
2.<8 S(,/(+7&+' K I;02+;+6(/(&)6
FMCG B:'&6+'' M)3+2
$% now is taking a leaf out of the 4MCC #usiness model to take the company to greater
heights.
ajaj has kicked off a project to completely restructure the company;s retail network and
create multiple sales channels.
Ever the ne"t few months, the company will set)up separate sales channels for every segment
of its #usiness and consumers. ajaj $uto;s entire product portfolio, from the entry)level to
the premium, is #eing sold #y the same dealers. &he restructuring will involve separate dealer
networks catering to the ur#an and rural markets as well as its three)wheeler and premium
#ikes segments.
ajaj $uto also plans to set)up an independent network of dealers for the rural areas. &he
needs of financing, selling, distri#ution and even after)sales service are completely different
in the rural areas and do not makes sense for city dealers to control this. &he company also
plans to set)up e"clusive dealerships for its three)wheeler products instead of having them
sold through an estimated 166 of its e"isting dealers.
2.<9 O(%+, S(,/(+7&* I'':+'
C/'% &' '(,+67(%@ ajaj $uto has #een sitting on a cash pile for over five years now. Ever the
ne"t couple of years, competition in the two)wheeler market is set to intensify. &!A Motors
and <ero <onda are on a product e"pansion #inge. &o fight this #attle and retain its hard)
earned market share in the motorcycle segment, ajaj $uto will need its cash muscle. $ look
at its own story over the past five years provides valua#le insight.
D+2&'(&67 8),,.@ +hat is worrying is that there is an idea to delist the investment company
7also an indirect indication that it would #e listed initially8. &his would #e closing the valve
of eHuita#le ownership distri#ution.
&here is a hint of a #uy#ack of shares of the investment company as this is the only way it
can #e delisted. &he company would not #e short of cash to put through such a #uy#ack.
pg. 4&
4actors such as low valuation, low trading interest and the need to provide shareholders may
#e cited as plausi#le reasons for the #uy#ack.
S(/9+ -), B/8/'/9&@ ajaj $uto;s attempt to vest the surplus cash in a separate company
may #e a prelude to offering a stake to Gawasaki of Dapan in the eHuity of the automo#ile
company. &he latter has #een playing an increasingly active role in ajaj;s recent models, and
its #rand name is also more visi#le in ajaj #ikes than in the past.
B+((+, >/2:+ 0,)0)'&(&)6@ Ahareholder interests may #e #etter served if the cash is retained
to pursue growth in a tough market. &his would also o#viate the need to fork)out fancy sums
as stamp duty to the government for the de)merger. $ com#ination of a large one)time
dividend and a regular #uy#ack program through the tender route may offer #etter value. $
strategic stake for Gawasaki would only positively influence the stock;s valuation.
2.20 S(,/(+7&+' -), (%+ O>+,'+/' M/,9+('
ajaj $uto looks at e"ternal markets primarily with three strategies' )
<) $ market where all $% need to do is distri#ute through CGD or CU routes.
2) Markets where $% need to create new products.
3) Markets where $% need to enter with e"isting products and pro#a#ly with a good
distri#utor or a production facility or a joint venture.
=arlier, most of the products that ajaj e"ported were scooters and some motorcycles.
<owever, in its target markets, like in India, the shift was towards motorcycles. +ith the
e"pansion in ajaj;s own range to almost five)si" platforms of motorcycles, it had a #etter
offering to e"port, also the reason for its stronger showing. 4or the last fiscal, 06 per cent of
its e"ports were two)wheelers and the rest three)wheelers. Ef the two)wheeler e"ports, close
to /6 per cent were motorcycles.
pg. 41
ajaj has identified certain key markets, which hold potential. Its first overseas office
esta#lished at the De#el $li free trade >one has #een the focal point for e"ports to middle
$frica and the Aaharan nations. =gypt and Iran also continue to #e strong markets for ajaj.
&he other market, which would #e a focus area, is Aouth $merica, where the company feels it
is fairly well represented in most countries, e"cept in ra>il, the largest market. &he company
recently participated in a large auto e"hi#ition in ra>il and found good consumer acceptance
to products like Pulsar and +ind 3.2.
&he other focus area is the $A=$? nations, which constitute the third #iggest consumer of
two)wheelers. &he #iggest among them is Indonesia, where ajaj distri#utors are looking to
introduce eco)friendly four)stroke auto rickshaws. ut two)wheeler market reHuires great
deal of effort from $%. =very#ody is there with <onda leading the show. &here;s Au>uki,
Gawasaki and some Gorean and Chinese models. $% should look at the right product mi"
for two)wheelers. ajaj;s Pulsar model has taken off well there. It also wants to develop a
new step)through model for the Indonesian market, #ut for now it will create a #ase there
with its motorcycle models.
ajaj has also made a #eginning #y selling #ikes in the Philippines #randed in the name of its
technical partner, Gawasaki. &he two signed an MoU in 4e#ruary. Gawasaki, a large multi)
product conglomerate, only makes high)end #ikes and does not have su#).66cc models.
Gawasaki is marketing the new model, +ind 3.2, developed #y #oth companies, in the
Philippines. &he ajaj)developed models, Cali#er and yk, which is a fuel)efficient #ike, are
also #eing distri#uted #y Gawasaki. &his is a good #eginning strategically for Gawasaki to
evince interest in ajaj products for markets which can still #uy less than 326 cc.
2.2< RKD
ajaj $uto has a huge, e"tensive and very well)eHuipped Iesearch and Development wing
geared to meet two critical organi>ational goals' development of e"citing new products that
anticipate and meet emerging customer needs in India and a#road, and development of eco)
friendly automo#ile technologies.
pg. 42
+hile the manpower strength of the I*D represents a cross)section of in)depth design and
engineering e"pertise, the company has also #een investing heavily in the latest, sophisticated
technologies to scale down product development lifecycles and enhance testing capa#ilities
ajaj $uto I*D also enjoys access to the speciali>ed e"pertise of leading international
design and automo#ile engineering companies working in specific areas.
ased on their own #rand of glo#ali>ation, they have #uilt their distri#ution network over 06
countries worldwide and multiplied the e"ports from 3: of total turnover in 4iscal 3/-/)/6
to over 2: in 4iscal 3//0)/,.
&he countries where their products have a large market are UA$, $rgentina, Colom#ia, Peru,
angladesh, Ari %anka, Italy, Aweden, Cermany, Iran and =gypt. ajaj leads Colom#ia with
02: of the scooter market, in Uruguay with 16: of the motorcycle market and in
angladesh with /2: of the three)wheeler market.
Aeveral new models are #eing developed specifically for glo#al markets and with these the
company will progressively endeavor to esta#lish its presence in =urope too.
2.22 T%+ F:(:,+
$lthough the avalanche of motorcycles offered Indian consumers a wide variety of models to
choose from, it also resulted in increased pressure on the companies to concentrate on cost)
cuts, technology enhancements and up)gradations and styling. &heir margins came under
pressure as marketing costs escalated.
&he companies were forced to reduce prices and offer discounts to survive the competition.
Moreover, analysts were skeptical a#out the segment;s a#ility to maintain the growth rate in
the years to come. Ene of the major assumptions underlying the motorcycles rush was that if
the market was considera#ly large and was growing at a constant pace, there was room for a
profita#le e"istence for all #rands.
pg. 43
In .663, there were over 16 motorcycle #rands in the market. <owever, with the top five
#rands accounting for more than 06: of the market, only 96: of the market was availa#le
for all other new #rands put together. Despite the launch of more vehicles, the survival
prospects of many of the individual #rands were deemed to #e rather #leak.
4urther, the growth in the motorcycle segment was dependant on continuing favora#le market
conditions. $nalysts claimed that to sustain this growth rate, the segment would have to
completely canni#ali>e the market for scooters and a considera#le part of the market for
scooters and mopeds.
Considering the fast growing scooter segment, with high demand from female customers,
followed #y the moderately growing moped segment and the restructuring in the scooter
segment with major national and foreign players reinforcing their presence, it was unlikely
that the entire growth in the two)wheeler sector would #e due to motorcycles.
$nalysts also commented that as the two)wheeler industry had grown steadily for eight years,
stages in the product life cycle would apply to the field sooner, rather than later and the
decline stage would invaria#ly come some day. &here was little differentiation #etween the
#rands #eing launched apart from styling as most companies had introduced their four)stroke
vehicles.
+ith the failure of the joint ventures, the e"pected introduction of cheaper Chinese #rands,
stringent emission norms and threat from major international players, the survival of
indigenous #rands looked uncertain. Constrained with the ruling price levels in the market
place, limited infrastructure and lack of technological innovations when compared to their
foreign counterparts, whether the Indian companies would succeed in generating the kind of
volumes needed to sustain in the competitive motorcycle market, remains to #e seen.
2.23 N+8 S(,/(+7&+' /3)0(+3 ?. B/1/1
Major emphasis to #e on new product launches.
<ave a new scooter market under development L will #e launched early .636.
Plan to launch a three)wheeled motorcycle, to cater to a niche segment.
pg. 44
ajaj e"pects stronger growth in the first Huarter of 45;36 powered #y the continuing success of the
UCD 312 D&A)Ai as also the launch of product upgrades off the Pulsar platform
$s a result of the recent stake hike #y ajaj $uto, G&M now has Iajiv ajaj on its #oard and the
cooperation agreement #etween the two companies covers product development, technology, vendor
sourcing and distri#ution.
E=&'(&67 P,)3:*(' N+8 L/:6*%C' &6 2009
B/1/1 ajaj Gristal D&Ai UCD 312 D&Ai
Pulsar UCD Aprint
Discover 312 D&Ai isco!er "00 #S$Si
Platina 366, 3.2 D&Ai %a&asa'i Nin(a )*0+

2.2D HONDA MOTORCYCLE K SCOOTER INDIA (P>(.) L(3.(HMSI)
<onda is the world;s largest manufacturer of .)wheelers. Its sym#ol, the +ings,
represents the company;s unwavering dedication in achieving goals that are uniHue and a#ove
all, conforming to international norms. &hese wings are now in India as <onda Motorcycle *
Acooter India Pvt. %td. 7<MAI8, a wholly owned su#sidiary of <onda Motor Company %td.,
Dapan. &hese wings are here to initiate a change and make a difference in the Indian .)
wheeler industry. <onda;s dream for India is to not only manufacture .)wheelers of glo#al
Huality, #ut also meet and e"ceed the e"pectations of Indian customers with outstanding after
sales support.
pg. 4-
2.2# A?):( H)63/ M)(),*.*2+ K S*))(+, I63&/ P>(. L(3.
Efficial ?ame <onda Motorcycle * Acooter India Pvt. %td.
=sta#lished .6th $ug, 3///
Place Manesar, District Curgaon, <aryana, India
Investment Is. 166 Crore
Iepresentative Mr. Ahinji $oyama, President * C=E
4actory %ocation Manesar, District Curgaon, <aryana, India
Production Capacity 36,666,66 Units per 5ear
<onda;s dream for India is to not only manufacture .)wheelers of glo#al Huality( #ut
also meet and e"ceed the e"pectations of Indian customers with outstanding after sales
support. &hey aim to produce technologically superior, efficient and reasona#ly priced .)
wheelers, with <onda tested technology, #acked up with after sales service of <onda;s glo#al
standard.
2.2$ CORPORATE PROFILE
<onda Motor Co., %td., operates under the #asic principles of PIespect for the
IndividualP and P&he &hree DoysP)commonly e"pressed as &he Doy of uying, &he Doy of
Aelling and &he Doy of Creating. Iespect for the IndividualP reflects our desire to respect the
uniHue character and a#ility of each individual person, trusting each other as eHual partners in
order to do our #est in every situation. ased on this foundation of Iespect for the Individual,
P&he &hree DoysP e"presses our #elief and desire that each person working in, or coming into
pg. 46
contact with our company, directly or through our products, should share a sense of joy
through that e"perience.
In line with these #asic principles, since its esta#lishment in 3/9-, <onda Motor Co.,
%td., has remained on the leading edge #y creating new value #y providing products of the
highest Huality at a reasona#le price, for worldwide customer satisfaction. In addition, the
Company has conducted its activities with a commitment to protecting the environment and
enhancing safety in a mo#ile society.
&he Company has grown to #ecome the world;s largest motorcycle manufacturer and
one of the leading automakers. +ith a glo#al network of 929Y su#sidiaries and affiliates
accounted for under the eHuity method, <onda develops, manufactures and markets a wide
variety of products ranging from small general)purpose engines and scooters to specialty
sports cars, to earn the Company an outstanding reputation from customers worldwide.
2.2G M&''&)6 S(/(+;+6(
Maintaining a glo#al viewpoint, we are dedicated to supplying products of the highest
Huality at a reasona#le price for worldwide customer satisfaction.
2.28 SWOT A6/2.'&'
Strength
Ielia#le #rand name
$fforda#le price
<onda have a #ig share of market in scootreats segment
pg. 4!
<onda is the first company who introduced the technology of central shock a#sorption
in India
<onda having high tech engines
<MAI is the su#sidiary company of <onda Motors %td. +hich is the largest company
in the proposed sector
Weakness
%ess num#er of service center
Market share very less as compare to there competitor
Apares parts are not easily availa#le
%ow product range
Maintenance cost is very high
Opportn!ty
Increase in product range
Untapped market a#ove 3-6 cc in motorcycles.
More maturity and movement towards higher)end motorcycles
<onda can #e use #rand image of <ero <onda
Threats
&here is high competition in the market
&hreat of cheap imported motorcycles and components from China
pg. 45
2.29 PRODUCT RANGE@
SCOOTERS@
DIE
$C&I!$
$!I$&EI
MOTORCYCLES@
C &+IA&=I
A<I?=
C4 A&U??=I
U?ICEI?
C4 A&U??=I PCM 4I
C3666I
CI3666II
F+/(:,+' )- / -+8 ?&9+' -,); /?)>+
;+6(&)6+3 2&'( -,); HONDA /,+ /'
-)22)8'..
$C&I!$
pg. 44
A*(&>/
M/6:-/*(:,+, <onda Motors %td.
P,)3:*(&)6 .669)present
P,&*+ Is. 96003
E67&6+ 9)stroke, air cooled,, #hp V
,666 rpm,36. cc

C &+IA&=I


pg. -&
CB T8&'(+,
M/6:-/*(:,+, <onda Motors %td.
P,)3:*(&)6 .636 E?+$IDA
P,&*+ Is 9-,666
E67&6+ 336cc,/#hpV-666
rpm,/?mV0666rpm
C4
A&U??=I
PCM 4I
U?ICEI?
pg. -1
C4 A&U??=I PCM 4I
M/6:-/*(:,+, <onda Motors %td.
P,)3:*(&)6 .636 E?+$IDA
P,&*+ Is 9-,666
E67&6+ 3.2cc,33.0#hpV-666
rpm,33..?mV0.26rpm
U?ICEI?
M/6:-/*(:,+, <onda Motors %td.
P,)3:*(&)6 .662)present
P,&*+ Is 01,666
E67&6+ 326cc,31.1#hpV-666 rpm,3..-?)
mV2266rpm.
2.30 M/,9+( 7,)8(% /63 ;/,9+( '&I+ (HMSI)
&he automo#ile industry has seen an overwhelming growth in li#eral India. $lmost every #ig
manufacturer has made its presence felt in the country. $fter the foreign direct investment
regulations were removed, many manufacturers saw India as a potential market. Most of the
auto manufacturers were in colla#oration with the Indian companies after @/3 till @//, when
the rules were changed( some of them still enjoy that. +ith many foreign manufacturers
eyeing India as the market, the giants were no e"ception and most of them are already having
their manufacturing or assem#ling facilities in India. <onda was into the Indian two)wheeler
industry from 3/-1, when it joined hands with <ero to start <ero <onda and with Ginetic to
start Ginetic <onda. <onda #roke the ties with Ginetic in @// and set up its own 366:
su#sidiary called <onda Motorcycle and Acooter India 7<MAI8 Pvt. %td.
<MAI laid its foundation stone in Manesar, <aryana in the same year and also signed an
agreement with <ero that it won@t manufacture motorcycles for the ne"t five years i.e. till
.669 as <ero <onda was not into the scooter segment at that time. &his gave <onda a license
to manufacture scooters at will and it did that #y rolling out its first scooter, $ctiva in .663
and followed it with Dio in the same year. <onda now enjoys a large chunk of market share
in the scooter segment with $ctiva, Dio and now $viator as its products. <onda introduced its
first motorcycle, Unicorn in .669 in the 326cc segment which was followed #y Ahine in the
3.2cc segment in .660 followed #y Atunner in the same segment in .66-. $ll these
motorcycles were highly appreciated and instant hits in the growing Indian market which
over these years was mainly dominated #y <ero <onda and ajaj $uto %td.
&he main rivals <MAI is countering are $%, <ero <onda and &!A in the motorcycle
segment and &!A, <ero <onda and Mahindra Ginetic in the scooter segment. <MAI is the
pg. -2
market leader in the scooter segment and is yet to have a major share in the motorcycle
segment even though it is growing at 1...9: on a monthly #asis.
&he #ike segment has a market growth rate of 91: with <MAI having a share of 3-: &he
#iggest rival in this segment is <MAI@s sister concern <ero <onda with a share of 22:. &he
scooter segment is having a growth rate of 1...9: and <MAI having a market share of
2,.,:. &he nearest rival in this segment is &!A motors with a share of 3-.,:.
2.3< S(,/(+7. )- ,&>/2' ' HMSI
In .66,, out of every 366 two)wheelers sold in the country ) only 3. were scooters. &hat
num#er went up to 30 in the past financial year and is projected to >oom to almost .6 this
year. &here@s more' the scooter market grew in dou#le digits last fiscal, outperforming the
two)wheeler market, which grew ..0 per cent in the same period. &he golden days of the
early -6s, when scooters had a 09 per cent market share, are still far away. ut the revival
signals are strong.
Acooter manufacturers said the 3.39 million)strong domestic market was e"pected to cross .
million units in the ne"t four years. &hat e"plains the entry of a host of newer players in the
segment, such as Mahindra)Ginetic and 5amaha. Aensing competition, the esta#lished players
R <onda, &!A Motors, ajaj $uto, <ero <onda and Au>uki R have hit the drawing #oard
once again, to pull out flashy, high)powered and un)geared scooters.
Acooter production stands at roughly .6: of the overall two)wheeler production
Y+/, T8) W%++2+,' P,)3:*(&)6 (B&9+' H '*))(+,')
.66.)61 2,6,0,..3
.661)69 2,0..,,93
.669)62 0,2./,-./
.662)60 ,,06-,0/,
.660)6, -,900,000
.66,)6- -,6.0,0-3
.66-)6/ -,93-,0.0
(,tt-:..&&&.siamindia.com.scri-ts.-roduction$trend.as-/)
pg. -3
<MAI has 22 per cent market share, followed #y &!A Motors with 3/ per cent and <ero
<onda with 39.2 per cent and ajaj managing a 33: market share.
M/,9+( '%/,+ L
S/2+' G,)8(% M D+*2&6+ L
N
P,)1+*(+3
G,)8(%L
HMSI 22 1...9: 3-:
TS 3/ 39: ,
B/1/1 33 )3.: ?$
0 based on 1ear on 1ear com-arison &it, sales in 2ul1 )003
0 4om-arison of scooter sales.
2.32 S(,/(+7. )- HMSI
<onda to e"it geared scooter segment in India, the Dapanese two)wheeler major
<onda will e"it the geared scooter market in India and phase out its 326 cc model R
=terno R as the company plans to focus on the gearless segment.
&he company would focus on gearless scooters in the future and with the launch of
the new $ctiva, <MAI is looking at a total of 3-: growth in its two)wheeler sales in
the ne"t fiscal,
.66/)36.
&he Company has entered the #ikes market since .669. &his has led to a certain
degree of canni#alism #etween <ero <onda * <MAI. <owever, <onda motor
company stands to gain out of either company@s success.
<MAI has a one)month waiting period for its new $ctiva 7336 cc8( si" months #efore,
it was just 36 days. =ncouraged, it is ramping up its monthly production to 06,666
from 96,666 earlier.
<onda remains committed to its promise to deliver superior technology and
performance, even though <MAI products are priced relatively higher than other
companies in the market.
2.3D S(,/(+7. /3)0(+3 ?. TS K B/1/1 -), &6*,+/'&67 '/2+' /63 *):6(+,&67
7,)8(% )- HMSI
pg. -4
Most companies currently produce scooters in the 366)3.2cc range that are targeted at
customers who want higher mileage and are ready to compromise on power. Cenerally, an
entry)level #ike 7366cc8 is more powerful and economical than a gearless scooter.
&o counter this, companies are working on scooter models that generate higher power without
undermining the fuel economy. &he result will #e a product that matches the performance of
motorcycles while #eing more comforta#le, agile and easy on the pocket.
&hey also aim at developing =) scooters
Chennai)#ased &!A Motors, makers of Acooty, are developing a premium un)geared
scooter that will #e more powerful and superior on design and styling. &he company
is learnt to have developed a new platform, much more powerful than the /6cc
Acooty.
&he country@s second largest #ike maker, ajaj $uto, is also developing a completely
new, un)geared, scooter. &o #e launched in .633, it is aimed at taking on the products
of <MAI. &his product will #e high on power output, like the company@s current #ike
range, #ut will not sacrifice on fuel economy.
2.3# R+>&+8 )- '(,/(+7&+' /3)0(+3 ?. H)63/
&he first #ike launched #y <onda, Unicorn was launched in the e"isting 326cc segment
which was mainly dominated #y Pulsar series and later &!A $pache also chipped in within
the competition. Aame was the case with Ahine, its second #ike in the 3.2cc segment. $fter
this, <onda slightly moved away from convention #y adopting a new strategy of
segmentation #y creating a segment within two e"isting segments. In .66-, <onda launched a
3.2cc Atunner C4 intended for not the conventional 3.2cc segment #ut just #etween 3.2cc
and 326cc segment. <onda did not compromise on the feature rich and technologically sound
product and not on the price either. &he price of this #ike was 26)06 thousand, thus
overcoming the price void #etween the 326cc and 3.2cc #ikes. &he competitors sell their
3.2cc #ikes at 96)26 thousand while the price of 326cc segment starts somewhere around 06
thousand. &his pricing strategy of <onda has paid well and now they are planning to
pg. --
penetrate the gap #etween the e"isting 366cc and 3.2cc segments #y launching a new feature
laden and technologically sound 366cc #ike. $gain <onda has clearly announced that the
price of this #ike won@t #e in the conventional 366cc range #ut slightly more than that.
SBU M/,9+(
G,)8(% R/(+
M/,9+( S%/,+ M/,9+( S%/,+
O- N+/,+'(
R&>/2
R+2/(&>+
M/,9+( S%/,+
O:/3,/6(
B&9+' 91 3- 22 6.11 Xuestion
Mark
S*))(+,' 1...9 2,., 3-., 1.6- Atar
pg. -6
I=%$&I!= M$IG=& A<$I=
M
$
I
G
=
&
C
I
E
+
&
<
pg. -!
STAR
7Acooters8

O:+'(&)6 M/,9
7ikes8
36
CASH COW
6
DOG
pg. -5
3.< RESEARCH DESIGN
3.2 STATEMENT OF PROBLEM
Ene of the major pro#lem is the negative growth #eing faced #y companies in the
two wheeler industry. &he two wheeler industry has #een shrinking continuously.
4rom a peak of over 96: growth in .66. it is currently facing a growth of )3.: in
the second Huarter of .66-. ="hi#it shows the recent trends.
&he a#ove e"hi#it shows the De)growth in the industry.
3.3 HYPOTHESIS
pg. -4
Nll Hypothes!sA H
0
' &here is a negative growth in the two wheeler industry
Alternat!"e Hypothes!s, H
<
' &here is no negative growth in the two wheeler industry.
3.D AIMS AND OB!ECTIES
&o study and compare the top three companies <=IE <E?D$,$D$D,* <MAI
&o compare and analy>e the product strategies of these three companies.
&o find out the reasons for change in growth of two wheeler industry.
3.# SAMPLING TECHNIOUE
?on)pro#a#ility sampling techniHue C)6>+6&+6*+ S/;02&67 was used for collecting data
from the consumers for the survey.
3.$ SAMPLE UNIT
Aample units are nothing #ut the respondents covered during the process of collecting
data for the purpose of research. &he sampling units consisted of people who own a
two wheeler.
3.G SAMPLE SIJE
&he sample si>e is the total num#er count of the num#er of total respondents covered for the
research purposes.
&otal sample si>e Z366
Male L --
pg. 6&
4emale) 3.
3.8 STATISTICAL DESIGN
&he data was collected and complied in Microsoft ="cel and is analy>ed using graphs
and pie charts.
3.9 PRIMARY DATA
Primary data was collected through the administration of Huestionnaires to the sample
units and conducting a pilot study to ascertain the worth of the Huestionnaire.
Xuestionnaire Design
Xuestionnaire $dministration
Acoring Procedure
Pilot study
3.<0 SECONDARY DATA
Aecondary data would #e collected from internet, industry journals and maga>ines.
&his information and the previous research papers will help in designing the
Huestionnaires and various attri#utes on which the companies are to #e assessed. &he
company dealers also provided valua#le information.
3.<< LIMITATIONS OF STUDY
Ewing to the huge population si>e 7sampling universe8 spanning throughout the
country, it #ecomes almost impossi#le to cover all the places in the given scope of
study.
&he results thus o#tained are just an overview of the areas and companies covered.
&he data gathered and the results interpreted are what was done in a time frame of 0
months and hence may not reveal the depth of the situation.
pg. 61
4or the ease of analysis, percentage of respondents using the products was considered
as the market share of the particular product in that category.
&his dissertation is confined on the #asis of more secondary data collected only hence
it is not very much a relia#le data for the study.

pg. 62
D.< RESPONDENTS PROFILE
D.2 SEP
TABLE 3@ SEP OF RESPONDENTS
SEP NUMBER OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS(L)
Male -- --
4emale 3. 3.
pg. 63
-- males and 3. females were covered during the survey.<ence --: of the
respondents were males and the rest 3.: were females.
D.3 MARITAL STATUS
MARITAL STATUS OF RESPONDENTS
MARITAL STATUS NUMBER OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS(L)
Unmarried ,6 ,6
Married 16 16
pg. 64
Eut of the total respondents ,,6: were single,16: were married and separated factor
was not taken into account.
D.D OCCUPATION
OCCUPATION OF RESPONDENTS
OCCUPATION NUMBER OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
STUDENTS $8 $8
SELF EMPLOYED 20 20
WORBING <2 <2
pg. 6-
$mong the 366 people surveyed ,0-: were students,.6: were self)employed and
remaining 3.: #elonged to working class like office goers, clerks etc.
D.# AGE
pg. 66
pg. 6!
AGE GROUP NUMBER OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
<8"22 <0 <0L
22"2# $0 $0L
2#"30 20 20L
Q30 <0 <0L
Ef the 366 respondents, 06: #elonged to ..).2 age group,.6: to .2 )16 group,36:
to3-).. group and the remaining 36: to more than 16 age group.
D.$ INCOME
MONTHLY
INCOME(IN
000S)RS.
NUMBER OF
RESPONDENTS
PERCENTAGE OF
RESPONDENTS
R20 30 30L
20"30 ## ##L
30"D0 <0 <0L
QD0 # #L
16: of the total respondents earn less than Is. .6,666 per month,22: of the respondents
earn Is. .6,666)16,666 per month,36: of the respondents earn Is .16,666)96,666 per
month and 2: of respondents earn more than Is. 96,666 per month.
pg. 65
#.< DATA ANALYSIS
#.2 OWNERSHIP OF TWO WHEELER
YES 80L
pg. 64
NO 20L
ANALYSIS@
-6: of the respondents own a two wheeler and .6 : of them do not have one.
INTERPRETATION@
Aince majority of my respondents are students from colleges, they own two wheelers
for daily commutation. =ach one of them own different #rands according to the taste
and preferences of the two wheelers availa#le in the market. &he most common
#rands are <ero <onda, ajaj, <onda.&!A etc.
#.3 MOST IEWED ADS
pg. !&
HERO HONDA #0L
BA!A! D0L
HMSI <0L
ANALYSIS@
&he viewership rate of ads among respondents is highest for <ero <onda with 26:,then
comes ajaj with 96: and <onda with 36:.
INTERPRETATION@
<ero <onda and ajaj #eing the long term rivals compete each other to capture the
market share. <ence if one of them comes with an effective ad, the other will surely try to
#etter it. In case of <onda it@s a late entry into the Indian market and it@s growing.
#.D MOST INFLUENTIAL ADS
HERO HONDA 3#L
BA!A! ##L
HMSI <0L
pg. !1
ANALYSIS@
In terms of influence of ads on the respondents, ajaj comes with 22: , then <ero
<onda with 12: and <onda 36:.
INTERPRETATION@
ajaj comes with ads that has more adrenalin rush specially targeting the youth and
majority of them get inspired #y the same. <ero <onda mainly depends on cele#rities
to influence the viewers. <onda mainly focuses on the international reputation of
#rand name they have #uilt for themselves.
#.# BEST RECALLED ADS
pg. !2
ANALYSIS@
In terms of recall ,26: of respondents were for ajaj stunt ad, then 12: were for
<ero <onda G$IIWM$ ad with <rithik roshan as #rand am#assador.
INTERPRETATION@
ajaj came with stunt ads so that it may attract the youth,and they positions their #ike
mainly high performing, aggressive, relia#le. <ero <onda comes with the fan #ase of
its #rand am#assador who very well connects with the features of the #ike .!ery few
recalled <onda #ike ads as they were very stereotyped ads.
#.$ MOST COMMON SOURCE OF ADS
T <8L
NEWSPAPERMMAGAJINES G0L
pg. !3
BILLBOARDS #L
INTERNET GL
ANALYSIS@
$mong the common source of ads, newspaper and maga>ines are marked #y ,6: of
respondents, &! #y 3-: ,Internet #y ,: and ill#oards #y 2:.
INTERPERTATION@
?ewspaper and maga>ines comes with a lot of information related to #ikes and it is a major
source. %atest trend of internet penetration also #rings in ads on #ikes ,mainly through social
networking sites, during online matches, events etc.
#.G SOURCE OF RELIABLE INFORMATION FOR PURCHASE
DECISIONS
FRIENDS #L
pg. !4
INTERNET $#L
AUTOMOTIE
MAGAJINES
<0L
COMPANY
DEALERS
20L
ANALYSIS@
Eut of 366 respondents ,02: found internet as a good source of relia#le
information,then with company dealers .6:,automotive maga>ines 36:,friends 2:.
INTERPRETATION@
&he various we# sites on the net provide valua#le information regarding the #ikes.
+ith the availa#ility of net, people can #rowse a#out any information a#out any
pg. !-
model #efore going to any dealer. Company dealers provide specific information and
in depth a#out a particular model. &he rest is from friends and auto maga>ines.
#.8 FACTORS WHICH MOTIATE PURCHASING DECISION.
DISCOUNT RATE 30L
EMI D#L
RESALE ALUE <2L
ALLOWANCES 8L
OTHERS 3L
pg. !6
ANALYSIS@
=MI is one of the major motivating factor with 92: liking it,then comes discount rate
16:,resale value 3.:,allowances -:,and others 1:
INTERPRETATION@
=MI comes with a great motivational factor in purchasing a #ike. It is less risky ,and
afforda#le way of purchasing. Discount rate normally comes during festival seasons
where ma"imum sales happen. Iesale value has few effects on certain #randed #ike
purchases.
#.9 PREFERRED PRICE RANGE(&6 000')
30"D0 #L
D0"#0 #L
#0"$0 <3L
$0"G0 $#L
pg. !!
G0"80 <0L
Q80 2L
ANALYSIS@
&he most preferred price range is 06),6 with 02: going for this option.31: for 26)
06, 36:for ,6 to -6, 2: each for 16)96 * 96)26.and .: for more than Is.-6,666.
INTERPRETATION@
Most of the performance, value segment #ikes falls in the 06),6 price category, and
there is huge competition among the major players. &hen the preferred ones are high
performance #ikes in the [Is. ,6,666 and medium performance and high efficient
ones in the \Is.06,666 category .
pg. !5
#.<0 RATING FOR ARIOUS FACTORS(< LEAST PREFERRED AND G
MOST PREFERRED)
pg. !4
ANALYSIS@
In this the most preferred factor is performance with ,2: going for it. &hen comes
service and support and fuel efficiency with /6: and ,6: in terms of preferences.
&his is followed #y price and #rand value of the #ike.
INTERPRETATION@
Performance is one factor which most of the people specially youth look upon in a
two wheeler. $lso the companies have come upon with a segment of this category and
pg. 5&
have developed #ikes #ased on this. &he customers also look into the after sales and
support the company offer when going for a two wheeler. <ence the service offered is
of prime importance. &he price is an important factor for medium segment people that
is #elow Is.06,666 as they try to #alance price as well as efficiency of two)wheeler.
rand value plays a major role for loyal customers for eg. $ person #uys only
<E?D$, #ecause its one of the internationally trusted #rands.
#.<< IS CROSSCHECBING DONES
YES 20L
pg. 51
NO 80L

ANALYSIS@
Enly .6: say that they do cross checking of what they see in the commercial,-6: do
not do it
INTERPRETATION@
Most of the viewers see the ads and get some information regarding it with very few
doing crosschecking a#out what really is #ehind the scenes.
pg. 52
$.< DEMAND AND GROWTH DRIERS
pg. 53
&he following factors play a major role in increasing the demand for two wheelers in India.
Personal Income, demography and penetration level are key growth drivers in the two
wheeler industry.
P+,')6/2 I6*);+
Demand increases as the income increases, only to #e su#stituted later #y the demand for four
wheelers. Income has #een steadily growing in India and is projected to sta#ilise at a growth
rate of /)3. percent range #y .63..
D+;)7,/0%. /63 I6'0&,/(&)6
&he #igger the young and working population, the greater is its need for commutation. &he I&
and PE revolution has influenced this movement. &his is a favoura#le factor since Indian
workforce is young.
P+6+(,/(&)6 L+>+2
&he lower the penetration levels in the market, the #etter the scope for future demand. $s the
penetration of the rural market is significantly low, it is going to #e a significant long term
growth driver.
O(%+, F/*(),'
Improvement in infrastructure increases competition, while simultaneously improving the
pu#lic transport. &he average time period taken to replace an e"isting #ike with a newer
model has decreased from , years to 2 years, resulting in replacement demand growth.
pg. 54
G.< FINDINGS
pg. 5-
&he major findings during the data collection and analysis time can #e summed up as
follows'
Interest rates are one of the prime reasons for the sharp fall in demand. Many #anks
have increased interest rates which make two wheelers costlier.
Difficulty in availing loans, rising defaults, tightening of loan recovery laws and
various other factors have dissuaded consumers from availing loans and led to further
pro#lems in credit lending.
Increasing oil prices have deterred many lower middle class families from #uying two
wheelers.
Introduction of low priced cars will directly affect the market. &he family segment
would want to gradually move from two wheelers to four wheelers. &he major impact
of this phenomenon would #e e"perienced in the 366)3.2 cc two wheelers whereas
the performance segment i.e. [ 3.2cc will continue to grow strongly.
+ith the introduction of the harat)9 norms, it will #e more challenging to meet these
stringent norms whilst simultaneously offering competitive prices.
In spite of these factors, demand drivers are present for the foreseea#le future and are
favoura#le for the two wheeler industry. <owever, to capture this growth, any player
will have to correctly position itself to appeal to the consumer.
pg. 56
pg. 5!
8.< HYPOTHESIS TESTING
Nll Hypothes!sA H
0
' &here is a negative growth in the two wheeler industry
Alternat!"e Hypothes!s, H
<
' &here is no negative growth in the two wheeler industry.
PARAMETERS TO TEST HYPOTHESIS
Aince the hypothesis is stated in a#solute su#jective terms, there was a reHuirement to convert
this su#jectivity into o#jectivity to arrive at a stage for testing the hypothesis. 4or performing
this task, , product categories were selected and the companies were tried on the grounds of'
$vaila#ility of product
?um#er of customer complaints
Dealers satisfaction level
$reas of operation and design of distri#ution channels
<old on the market share
<ence the companies were tested on these #asis and hence the results were compiled
according to the respective product categories itself.
RESULT OF HYPOTHESIS TESTING
&he overall research and analysis of the two wheeler companies across these , categories led
to the following result'
?ull hypothesis is accepted for the product categories of 366cc and 3.2cc segment
as there is intense competition from fuel efficient small cars in India.
?ull hypothesis does not hold true for product categories like
312cc,326cc,3-6cc,..6cc.
Aince the null hypothesis does not hold true in majority of the product categories and hence
the null hypothesis is not valid and hence, NULL HYPOTHESIS IS NOT PROED. In
Indian markets for majority of the two wheeler product categories, 4oreign companies have
streamlined their operations and distri#ution channels in a much more effective way ensuring
higher availa#ility of their goods in the market in pan)India.
pg. 55
9.< RECOMMENDATIONS
&he following recommendations are'
pg. 54
&he two wheeler companies should focus on gearless scooters. &he market share of
gearless scooters is increasing at a healthy rate. ajaj is virtually a#sent in this range
that caters to the needs of women and families. Presently <onda, <ero <onda and
&!A are #ig players in this segment.
=ntry into four wheeler segment
ajaj has entered into a joint venture with Ienault)?issan in the development of a
small car priced at O1666. &his is a significant move #ecause it directly competes with
&ata ?$?E. ajaj has also displayed its small car prototype in the recently held auto
e"po. It promises dou#le the mileage as compared to any car in the economy segment
and is also considering the option of introducing Diesel and %PC variants. &he four
wheeler segment will also #e a#le to hedge any risk that might arise #ecause of the
two wheeler industry and would profit from retaining consumers switching from two
wheelers.
Acaling Up Aervice Centers
Companies need to scale up its service centers #oth in num#ers and in capacity.
Geeping in line with its growth target for the ne"t 2 years, the service centers should
not only cater to two wheelers #ut should also #e upgraded to cater to the needs of
four wheelers that companies plans to launch.
4ocus on =asy Credit %ending
Investment in Iesearch and Development
4ocus on ="ports and Clo#al Market
pg. 4&
<0.< LEARNINGS
I had some major learnings while working on this research project which can #e summari>ed
as follows'
pg. 41
Dream <igh #ecause that will help you to $chieve ig.
Aystematic Planning is the essence for the project.
Making realistic time frame and following them is mandatory.
Data Collection reHuires a lot of patience and follow up. It reHuires meticulous
research to select the right sample for research.
Aecondary data collection is also an important task and one must #e aware which
source is completely authentic and relia#le.
AM$I& goals must #e set7A)specific, M)measura#le, $)authentic, I)realistic and &)
time specific8.
pg. 42
<<.< BIBLIOGRAPHY
www.google.co.in
www.wikipedia.com
www.slideshare.com
www.economywatch.com
%ondon usiness Achool)digital li#rary
pg. 43
$U&E M$C$WI?=A
<ero <onda ,ajaj, <onda dealers
pg. 44
<2.< OUESTIONNAIRE

<i, I am conducting a research on the comparative study of ]three@ two wheeler
companies #ased on its product strategy and advertising strategy. Please take a
pg. 4-
few minutes of your time to fill the Huestionnaire. Information provided #y you
will #e kept confidential.
3. Do you own a two wheelerS
5es ?o
If yes, then specify^^^^^^^^^^^^^^^^
.. +hich of the three companies@ ads you have viewed the mostS
<=IE <E?D$
<MAI
$D$D
1. $mong these ads which ad has influenced you the mostS
<=IE <E?D$
<MAI
$D$D
9. ?ame any two #ike ads that you can recall the #est.
a.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
#.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
2. +here do you come across these ads Huite often S
&!
?ewspaperBMaga>ines
ill#oards
Internet
0. +here do you gather the relia#le information for purchasing a two
wheeler Huite oftenS
4riends
Internet
$utomotive maga>ines
Company dealers
pg. 46
,. +hat are the factors which motivate you most while purchasing a two
wheelerS
Discount rate
=MI
Iesale value
$llowances
Ethers
-. +hich price range do you prefer mostS
16)96 96)26 26)06 06),6 ,6)-6 [/6
/. Iate the following factors in a #ike on the scale 3),, #ased on your
preferenceS 7+here 3 is least preferred and , most preferred.8tick mark.
36.Do you verify or crosscheck the information provided in the commercials
of two wheelers S
5es ?o
P=IAE?$% I?4EIM$&IE?
?ame
Cender
pg. 4!
An. 4actor 3 . 1 9 2 0 ,
3. Price
.. 4uel efficiency
1. Performance
9. Aafety and comfort
2. Design and style
0. rand value
,. $fter sales service and support
$ge
Eccupation
Income
Marital status
Xualification
Contact num#er
pg. 45
pg. 44