A

Project report

On

NEW PRODUCT DEVELOPMENT OF EXISTING COMOPANY

Submitted in partial fulfilment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

(2018-2020)

Submitted to: Submitted by:

Dr. Sahil Raj Pranav Goyal (18421165)

Sahil Goyal (18421172)

Shifa Sharma (18421216)

MBA 2nd year

SCHOOL OF MANAGEMENT STUDIES

PUNJABI UNIVERSITY PATIALA

 ACKNOWLEDGEMENT

We would like to take this opportunity to express our deep sense of

gratitude to Dr. Sahil Raj, Prof. (Business Analytics), SMS (School of
Management Studies), Punjabi University, Patiala. For his sincere
guidance and help extended to us during the project work.
He as a guide has constantly encouraged and inspired us by his
personal involvement, making the project a success.
We are also grateful to the library authorities of SMS for providing us
with the needed information during our preparation of project work.

Pranav Goyal
Sahil Goyal
Shifa Sharma
 DECLARATION

I hereby declare that the Project report entitled" the launching of new
produce in existing company" submitted to School of Management
Studies, Punjabi University, Patiala in partial fulfilment of the
requirements for the award of the degree of Master of Business
Administrative is a record of original dissertation work done by me,
under the guidance and supervision of Dr. Sahil Raj Lecturer and
Research Supervisor, SMS Department, Punjabi University, Patiala
and it has not formed the basis for the award of any Degree other
similar title to any candidate of any University.

Pranav Goyal

Sahil Goyal

Shifa Sharma
 Index

Sr. no. Topic

1) Company Profile (RIL)
2) Financial Statements
3) Executive Summary
4) Market share
5) Reliance automobile industry
6) Finance
7) Plant layout
8) Plant location
9) HR
10) Marketing
Product
11)
12) Market research
13) Analysis & interpretation
14) Survey (questionnaire)
15)
16)
 Company Profile [Reliance Industries Limited (RIL)]
Reliance Industries Limited (RIL), for the past several years, is India's largest
private sector company on all major financial parameters. Our group's activities
span exploration & production of oil & gas, petroleum refining and marketing,
petrochemicals (polyester, fibre intermediates, polymers and chemicals),
textiles, retail and special economic zones (SEZs). Our company is featured in
the list of ‘World’s Largest Corporations’ for the fourth consecutive year and is
among the Top 25 climbers for two years in a row. We are ranked 182nd in the
(up from previous year’s 284th rank). Further, our company ranks amongst the
as per a list compiled by the US financial publication- in collaboration with the
Boston Consulting Group in April 2008. We, with subsidiaries, are India’s
largest exploration acreage holder in the private sector. Our portfolio comprises
30 percent interest in Panna-Mukta and Tapti (PMT) fields, 33 exploration
blocks awarded under the NELP and Pre-NELP licensing rounds and five coal
bed methane (CBM) blocks. Our international businesses comprises exploration
interests in Yemen, Oman, East Timor, Kurdistan (Iraq), Colombia and
Australia. We operate the third largest petroleum refinery in the world at any
single location. Further, we are setting-up an export-oriented refinery at
Jamnagar through our subsidiary Reliance Petroleum Ltd, after which,
Jamnagar will become home to the single largest location for refinery assets.
We have maintained our domestic leadership position in Polymers business, i.e.
Polypropylene (PP), Polyethylene and Poly Vinyl Chloride. We are fully
integrated Polyester producer making our own Paraxylene (PX) and Purified
Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) from crude oil.
Further, we are the 4 largest producers of PX and PTA. Our company is India’s
largest and the world’s 6 largest producer of MEG. We are world’s 7 largest
producer of PP. Our textile division at Naroda, Ahmedabad is one of the largest
and most modern textile complexes in India. Our flagship brand ‘VIMAL’ is
one of the most trusted brands of premium textiles in the country. It also meets
the requirements of automotive textile and apparel.

Our motto “Growth is Life” aptly captures the ever-evolving spirit of Reliance.
We have evolved from being a textiles and polyester company to an integrated
player across energy, materials, retail, entertainment and digital services. In
each of these areas, we are committed to innovation-led, exponential growth.
Our vision has pushed us to achieve global leadership in many of our
businesses.
Reliance's products and services portfolio touches almost all Indians on a daily
basis, across economic and social spectrums. We are now focused on building
platforms that will herald the Fourth Industrial Revolution and will create
opportunities and avenues for India and all its citizens to realize their true
potential.

History
(1960–1980)
The company was co-founded by DhirubhaiAmbani and ChampaklalDamani in
1960's as Reliance Commercial Corporation. In 1965, the partnership ended and
Dhirubhai continued the polyester business of the firm. In 1966, Reliance
Textiles Engineers Pvt. Ltd. was incorporated in Maharashtra. It established a
synthetic fabrics mill in the same year at Naroda in Gujarat. On 08 May 1973,
it became Reliance Industries Limited. In 1975, the company expanded its
business into textiles, with "Vimal" becoming its major brand in later years. The
company held its Initial public offering (IPO) in 1977. The issue was over-
subscribed by seven times. In 1979, a textiles company Sidhpur Mills was
amalgamated with the company. In 1980, the company expanded its polyester
yarn business by setting up a Polyester Filament Yarn Plant in Patalganga,
Raigad, Maharashtra with financial and technical collaboration with E. I. du
Pont de Nemours & Co., U.S.

(1981–2000)
In 1985, the name of the company was changed from Reliance Textiles
Industries Ltd. to Reliance Industries Ltd. During the years 1985 to 1992, the
company expanded its installed capacity for producing polyester yarn by over
145,000 tons per annum.

The Hazira petrochemical plant was commissioned in 1991–92.

In 1993, Reliance turned to the overseas capital markets for funds through a
global depositary issue of Reliance Petroleum. In 1996, it became the first
private sector company in India to be rated by international credit rating
agencies. S&P rated Reliance "BB+, stable outlook, constrained by the
sovereign ceiling". Moody's rated "Baa3, Investment grade, constrained by the
sovereign ceiling".

In 1995/96, the company entered the telecom industry through a joint venture
with NYNEX, USA and promoted Reliance Telecom Private Limited in India.

In 1998/99, RIL introduced packaged LPG in 15 kg cylinders under the brand

name Reliance Gas.

The years 1998–2000 saw the construction of the integrated petrochemical

complex at Jamnagar in Gujarat, the largest refinery in the world.

(2001 onwards)
In 2001, Reliance Industries Ltd. and Reliance Petroleum Ltd. became India's
two largest companies in terms of all major financial parameters. In 2001–02,
Reliance Petroleum was merged with Reliance Industries.

In 2002, Reliance announced India's biggest gas discovery (at the Krishna
Godavari basin) in nearly three decades and one of the largest gas discoveries in
the world during 2002. The in-place volume of natural gas was in excess of 7
trillion cubic feet, equivalent to about 1.2 billion barrels of crude oil. This was
the first ever discovery by an Indian private sector company.

In 2002–03, RIL purchased a majority stake in Indian Petrochemicals

Corporation Ltd. (IPCL), India's second largest petrochemicals company, from
the government of India. IPCL was later merged with RIL in 2008.

In 2005 and 2006, the company reorganized its business by demerging its
investments in power generation and distribution, financial services and
telecommunication services into four separate entities.

In 2006, Reliance entered the organized retail market in India with the launch of
its retail store format under the brand name of 'Reliance Fresh'. By the end of
2008, Reliance retail had close to 600 stores across 57 cities in India.
In November 2009, Reliance Industries issued 1:1 bonus shares to its
shareholders.

In 2010, Reliance entered the broadband services market with acquisition of

Infotel Broadband Services Limited, which was the only successful bidder for
pan-India fourth-generation (4G) spectrum auction held by the government of
India.

In the same year, Reliance and BP announced a partnership in the oil and gas
business. BP took a 30 per cent stake in 23 oil and gas production sharing
contracts that Reliance operates in India, including the KG-D6 block for $7.2
billion. Reliance also formed a 50:50 joint venture with BP for sourcing and
marketing of gas in India.

In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a
Butyl rubber plant in Jamnagar, Gujarat, to be operational by 2018.

Vision
Through sustainable measures, create value for the nation, enhance quality of
life across the entire socio-economic spectrum and help spearhead India as a
global leader in the domains where we operate.

Mission
 Create value for all stakeholders
 Grow through innovation
 Lead in good governance practices
 Use sustainability to drive product development and enhance operational
efficiencies
 Ensure energy security of the nation
 Foster rural prosperity

Values
Our growth and success are based on our core values of Corporate Citizenship,
Customer Value, Respect, One Team, Ownership Mindset, Integrity, Safety and
Excellence.
 Profit and loss account of Reliance

* In (Rs. cr.)
March 2019 March 2018

Sales Turnover 622,809.00 430,731.00

Excise Duty 55,674.00 39,054.00

Net Sales 567,135.00 391,677.00

Other Income 8,635.00 9,949.00

Stock Adjustments 4,680.00 8,610.00

Total Income 580,450.00 410,236.00

Raw Materials 405,986.00 281,928.00

Power and Fuel Cost 17,029.00 14,569.00

Employee Cost 12,488.00 9,523.00

Other Manufacturing Expenses 4,512.00 0.00

Selling and Admin Expenses 0.00 0.00

Miscellaneous Expenses 47,882.00 30,091.00

Preoperative Exp Capitalized 0.00 0.00

Total Expenses 487,897.00 336,111.00

Operating Profit 83,918.00 64,176.00

PBDIT 92,553.00 74,125.00

Interest 16,495.00 8,052.00

PBDT 76,058.00 66,073.00

Depreciation 20,934.00 16,706.00

Other Written Off 0.00 0.00

Profit Before Tax 55,124.00 49,367.00

Extra-ordinary items 0.00 0.00

PBT (Post Extra-ord Items) 55,124.00 49,367.00

Tax 15,390.00 13,346.00

Reported Net Profit 39,485.00 36,016.00

Total Value Addition 81,911.00 54,183.00

Preference Dividend 0.00 0.00

Equity Dividend 3,554.00 3,255.00

Corporate Dividend Tax 728.00 661.00

Shares in issue (lakhs) 59,258.69 59,218.26

Earnings Per Share (Rs) 66.63 60.82

Equity Dividend (%) 0.00 0.00

Book Value (Rs) 653.26 495.61

Balance sheet of Reliance

* In (Rs. cr.)
Mar 2019 Mar 2018

Total Share Capital 5,926.00 5,922.00

Equity Share Capital 5,926.00 5,922.00

Share Application Money 0.00 15.00

Preference Share Capital 0.00 0.00

Reserves 381,186.00 287,569.00

Revaluation Reserves 0.00 0.00

Net worth 387,112.00 293,506.00

Secured Loans 271,942.00 17,269.00

Unsecured Loans 0.00 164,335.00

Total Debt 271,942.00 181,604.00

Total Liabilities 659,054.00 475,110.00

Gross Block 534,698.00 527,517.00

Less: Accum. Depreciation 136,324.00 123,632.00

Net Block 398,374.00 403,885.00

Capital Work in Progress 179,463.00 187,022.00

Investments 235,488.00 82,862.00

Inventories 67,561.00 60,837.00

Sundry Debtors 30,089.00 17,555.00

Cash and Bank Balance 7,512.00 4,255.00

Total Current Assets 105,162.00 82,647.00

Loans and Advances 83,919.00 59,932.00

Fixed Deposits 0.00 0.00

Total CA, Loans and Advances 189,081.00 142,579.00

Deffered Credit 0.00 0.00

Current Liabilities 330,890.00 333,561.00

Provisions 4,182.00 4,138.00

Total CL and Provisions 335,072.00 337,699.00

Net Current Assets -145,991.00 -195,120.00

Miscellaneous Expenses 0.00 0.00

Total Assets 667,334.00 478,649.00

Contingent Liabilities 79,781.00 60,997.00

Book Value (Rs) 653.26 495.61

 Executive Summary
Indian automobile industry has grown leaps and bounds since 1898, a time
when a car had touched the Indian streets for the first time. At present it holds a
promising tenth position in the entire world with being 2nd in two wheelers and
4th in commercial vehicles. Withstanding a growth rate of 18% per annum and
an annual production of more than 2 million units, it may not be an
exaggeration to say that this industry in the coming years will soon touch a
figure of 10 million units per year.

Reasons of Growth

 Economic liberalization
 increase in per capita income
 various tax relief policies
 easy accessibility of finance
 launch of new models
 exciting discount offers

Market Share
Automobile industry of India can be broadly classified under passenger
vehicles, commercial vehicles, three wheelers and two wheelers, with two
wheelers having a maximum market share of more than 75%. Automobile
companies of India, Korea, Europe and Japan have a significant hold on the
Indian market share. Motorcycles top the charts of two wheelers with Hero
Honda being the key player. Bajaj by far is the number one manufacturer of
three wheelers in India.
Global recession has impacted the Indian automobile industry also and can be
seen clearly in the sales figures of the last financial year. Even then this industry
has high hopes in 2009-2010; as banks have reduced loan interest rates and the
major chuck of automobile customers belong to the middle income group who
are becoming economically stronger with every passing day.
Among the two-wheeler segment, motorcycles have major share in the market.
Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46%
share in scooter and TVS makes 82% of the mopeds in the country.

Reliance in automobile sector

We are planning for investing on automobiles sector. So we are launching our
first motorcycle Flying Marcel. But the strategy is that the range of the bike
is ranging from 40000 and 55000 INR. To built a new market and new demand
of potential customers. So, that all middle income group population so that they
can afford bikes.

Why we plan:

 Due to modernization, there is need of bikes in nation.

 Manufacturing bikes required high labor skilled as well as unskilled; we
are in the mission to increase employment opportunities in the nation.
 We think that there is high demand of 2wheeler among population.

S.W.O.T. analysis
Strength:

 Reliance has a trusted customers and investors.

 Financial condition is good.
 New employees are willing to join the organization because of good
packages.
 Can face competition.

Weakness:

 Entering in a new market.

 No strong relationships with computer retailers.

Threats:
  Numbers of new Technology driven players and manufactures are in
market.
 Govt. reducing support and cutting down the Gas supply quota.
 Competitors have stronger brand names
 Competitors have strong relationships with computer retailers.

Opportunities:

 Consumers have brand trust, so we don’t need to bear high marketing

costs.
 We import the plant and machinery from Japan and other developed
nations.
 We will become the part of Made in India campaign.

Finance
Plant layout
 Plant location
We are planning to establish the plant in Greater Noida, Uttar Pradesh. The
availability of land and cheap labour, a healthy industrial relations atmosphere,
physical infrastructure (roads, airports) and proximity to markets. Then, state
governments are providing fiscal incentives to established plant.

The Manufacturing Process

 Raw materials as well as parts and components arrive at the
manufacturing plant by truck or rail, typically on a daily basis. As part of
the just-in-time delivery system on which many plants are scheduled, the
materials and parts are delivered at the place where they are used or
installed.
 Manufacturing begins in the weld department with computer-controlled
fabrication of the frame from high strength frame materials. Components
are formed out of tubular metal and/or hollow metal shells fashioned
from sheet metal. The various sections are welded together. This process
involves manual, automatic, and robotic equipment.
 In the plastics department, small plastic resin pellets are melted and
injected into molds under high pressure to form various plastic body trim
parts. This process is known as injection molding.
 Plastic and metal parts and components are painted in booths in the paint
department using a process known as powder-coating (this is the same
process by which automobiles are painted). A powder-coating apparatus
works like a large spray-painter, dispersing paint through a pressurized
system evenly across the metal frame.
 Painted parts are sent via overhead conveyors or tow motor (similar to a
ski lift tow rope) to the assembly department where they are installed on
the frame of the motorcycle.
 The engine is mounted in the painted frame, and various other
components are fitted as the motorcycle is sent down the assembly line.
 Wheels, brakes, wiring cables, foot pegs, exhaust pipes, seats, saddlebags,
lights, radios, and hundreds of other parts are installed on the motorcycle
frame. A Honda Gold Wing motorcycle, for example, needs almost as
many parts to complete it as a Honda Civic automobile.
 Quality Control
At the end of the assembly line, quality control inspectors undertake a visual
inspection of the motorcycle's painted finish and fit of parts. The quality control
inspectors also feel the motorcycles with gloved hands to detect any bumps or
defects in the finish. Each motorcycle is tested on a dynamometer. Inspectors
accelerate the motorcycle from 0-60 mph. During the acceleration, the "dyno"
tests for acceleration and braking, shifting, wheel alignment, headlight and
taillight alignment and function, horn function, and exhaust emissions. The
finished product must meet international standards for performance and safety.
After the dyne test, a final inspection is made of the completed motorcycle. The
motorcycles are boxed in crates and shipped to customers across North America
and around the world.

The Future
Motorcycles remain popular and the collecting and riding of antique models is
just as popular as riding the new versions. While sleek, new versions will
continue to be produces, it is anticipated that the value of older models will
continue to rise.

HR
Human resources or HR is the company department charged with finding,
screening, recruiting, and training job applicants, and administering employee-
benefit programs. As companies reorganize to gain a competitive edge, HR
plays a key role in helping companies deal with a fast-changing environment
and the greater demand for quality employees.

1. RECRUITMENT
Recruitment is an important part of an organization’s human resource planning
and their competitive strength. Competent human resources at the right
positions in the organization are a vital resource and can be a core competency
or a strategic advantage for it.
The objective of the recruitment process is to obtain the number and quality of
employees that can be selected in order to help the organization to achieve its
goals and objectives. With the same objective, recruitment helps to create a pool
of prospective employees for the organization so that the management can
select the right candidate for the right job from this pool.

Recruitment acts as a link between the employers and the job seekers and
ensures the placement of right candidate at the right place at the right time.
Using and following the right recruitment processes can facilitate the selection
of the best candidates for the organization.

In this is competitive global world and increasing flexibility in the labor market,
recruitment is becoming more and more important in every business. Therefore,
recruitment serves as the first step in fulfilling the needs of organizations for a
competitive, motivated and flexible human resource that can help achieve its
objective

INTERNAL SOURCES OF RECRUITMENT

 Transfers
 Promotions
 Upgrading and Demotion
 Retired and Retrenched Employees

EXTERNAL SOURCES OF RECRUITMENT

 PRESS ADVERTISEMENTS
 EDUCATIONAL INSTITUTES
PLACEMENT AGENCIES
 EMPLOYMENT EXCHANGES
 LABOUR CONTRACTORS
 UNSOLICITED APPLICANTS
 EMPLO YEE REFERRALS/ RECOMMENDATIONS
 RECRUITMENT AT FACTORY GATE
 2. SELECTION
It is the process of searching the potential candidate. It is negative in nature in
the Indian context. But it is positive in the US context. Selection process
consists of a series of steps, at each stage, facts may come light which may lead
to the rejection of the applicant. It is a series of successive hurdles or barriers
which an applicant must cross. These hurdles or screens are designed to
eliminate an unqualified candidate at any point in the selection process There
is no standards selection procedure to be used in all organizations
or for all jobs. The complexity of selection procedures increases with
the level and responsibility of the position to be filled. Steps are as follows:

 Preliminary Interview (screening applications)

 Application Form
 Selection Test
 Employment Interview
 Medical Examination
 Reference Checks
 Final Approval
 Employment
 Induction
 Follow – up (Evaluation)

3. TRAINING
Training constitutes a basic concept in human resource development. It is
concerned with developing a particular skill to a desired standard by instruction
and practice. Training is a highly useful tool that can bring an employee into a
position where they can do their job correctly, effectively, and conscientiously.
Training is the act of increasing the knowledge and skill of an employee for
doing a particular job.

IMPORTANCE OF TRAINING

 Optimum Utilization of Human Resources

 Development of Human Resources
 Development of skills of employees
  Productivity
 Team spirit
 Organization
 Organization Climate
 Quality
 Healthy work-environment
 Health and Safety
 Morale
 Profitability

Training and Development

Human Resource Management (HRM), a relatively new term, that emerged
during the 1930s. Many people used to refer it before by its traditional titles,
such as Personnel Administration or Personnel Management. But now, the trend
is changing. It is now termed as Human Resource Management (HRM). Human
Resource Management is a management function that helps an organization
select, recruit, train and develops.

Marketing

The marketing strategy is based on positioning of the product in the mind of

Consumers:

 Providing luxury cars at reasonable prices.

 We will distribute our car on mass level to that we can maximize the
profitability.

Market Segmentation:
Market segmentation is the process of dividing a market of potential customers
into groups, or segments, based on different characteristics. The segments
created are composed of consumers who will respond similarly to marketing
strategies and who share traits such as similar interests, needs, or locations.

Our bike will have market segmentation as follows:

  Geographical segmentation
 Demographic segmentation
 Psychographic segmentation
 Behavioral segmentation

Geographical segmentation:

 City: More focus on small cities because people believe in trying

innovative, new and better products.
 Area: National (India).
Demographic segmentation:

 Age (18 yrs to 45 yrs)

 Gender (Male)
 Income (Middle Income Group)
 Occupation (Service and Students)

Psychographic Segmentation:
 Personality: Introvert.
 Socio-economic: Upper-middle class, Lower-middle class.
 Life-style: Conservative.
Behavioural Segmentation:
 Benefits: Quality, service, after sell service.
 User status: Non user, potential user, first time user.

Target Marketing:
Market targeting is a process of selecting the target market from the entire
market. Target market consists of group/groups of buyers to whom the company
wants to satisfy or for whom product is manufactured, price is set, promotion
efforts are made, and distribution network is prepared.

 Measurable: Size ,purchasing power ,characteristics of the segments

  Substantial: A segment should be largest possible homogeneous groups
worth going after with a tailored marketing program e.g. earning capacity
20,000p.m.
 Accessible: Reach should be good.
 Differentiation: People have different perception about different
marketing mix.
 Actionable: Effective programs can be formulated for attracting and
serving the segments.

Positioning strategies:
It refers to the consumer’s perception of a brand or product in relation to
competing brands or products. Market positioning refers to the process of
establishing the image or identity of a brand or product so that consumers
perceive it in a certain way.

We want to put an image of our bike in the consumers mind as compare to our
competitors. Positioning through point of difference by presenting and
highlighting the new attributes of Flying Marcel Bike.

 Relevance
 Feasibility
 Distinctiveness
 Believability
 Communicability
 Sustainability
 Product
We are launching new bike with more features at less price. We are
launching 2 variants of our bike. Which will named as Flying
Marcel. One variant is made for the competition to hero splendor and
Honda shine bikes which we provided with the range of Rs. 40000
Incl. GST. And one variant is made for the competition of Bajaj
Pulsar 150 and TVS Apache which we offered at very attractive price
i.e. Rs. 55000 Incl. GST.

Features of Flying Marcel 1

Engine 115 cc

Maximum Power 8.5 BHP @ 8200 rpm

Mileage 95KMPL

Number of Cylinders 1

Number of Gears 4

Seat Height 750 mm

Ground Clearance 165 mm

Kerb/Wet Weight 120 kg

Fuel Tank Capacity 18 litres

Top Speed 100 KMPH

Features of Flying Marcel 2 (Sports Edition)

Engine 160 cc

Maximum Power 14.5 BHP @ 8000 rpm

Mileage 70 KMPL

Number of Cylinders 2

Number of Gears 6

Seat Height 800 mm

Ground Clearance 170 mm

Kerb/Wet Weight 155 kg

Fuel Tank Capacity 30 litres

Top Speed 180 KMPH

Other new features:

1) Slipper Clutch

Ever had that moment when you come up on an obstacle too fast, grab the
levers, and bang down the gears to let engine braking slow you down stat?
Noticed the rear squirming and threatening to spit you off the bike? That’s
where a slipper clutch comes in.
Originally developed for high-performance super sports bikes and track-only
machines, slipper clutch are designed to partially disengage (or "slip") when the
rear wheel tries to drive the engine faster than it would run under its own power.
It effectively provides full friction when the throttle is open, but shut the throttle
and when the rear wheel tries to go quicker than the engine, the clutch will
allow a certain amount of slip in the opposite direction. This lets the back wheel
spin relatively free from engine drag, like on a two-stroke.

2) Anti-lock Braking System (ABS)

What anti-lock braking system essentially does is constantly monitor the

revolution of the wheels with an ECU – sometimes single channel but mostly
dual channel (both the wheels). When the computer detects a wheel lock-up,
common when braking hard on less than ideal surfaces, it steps in by limiting
the braking force the rider exerts by either squeezing the lever or pressing the
foot pedal and keep the wheel spinning. Once the imminence of the locking
(and therefore skidding) is avoided, the system re-applies the maximum braking
force until the next skid is anticipated. By limiting the maximum force of the
braking manoeuvre, the ABS systems practically allow riders to use the greatest
stopping force possible without locking the wheels.
All these magic happens in fractions of seconds, so fast that the rider barely
feels it save for minute vibrations in the lever or pedal, as the pressure in the
brake line is constantly modulated.
ABS is a major boon for motorcyclists, especially novice ones, and it is so
beneficial that it will become mandatory for any new bike greater than 125cc,
manufactured and sold from 2016 in Europe. We believe such a decree should
be implemented in India too, especially considering our road conditions and
errant riding habits.

3) Security System & GPS Tracking Device

GPS Security Tracking System for bikes is an advance and is the latest
technology. This GPS device for the bike is to track your bike live on a map. If
your bike is stolen, you will get an SMS alert and you can switch off your bike
engine just by sending SMS to your bike’s Security system.
Two-wheeler security system and GPS tracking system installed in your bike
captures the GPS location information apart from other vehicle information at
regular intervals. The other vehicle information like GPS updates in the map
(map link), Excessive Acceleration alert, Sudden Breaking Alert, Option to
track by Web or Mobile App every 5 mins is also possible.
By installing Two Wheeler Anti-theft tracking device, you will get an
immediate alert SMS if your bike is stolen. This is all in one Bike tracking
device and Bike security system for your bike. You will be getting information
about your bike to your mobile on ignition detection, movement detection, SMS
alert on bike theft, you can switch Off engine via mobile phone, GPS Vehicle
location identification via SMS (GPRS enabled Sim) on the mobile phone,
GSM location updates and Tilting Alert.

Pricing
Pricing is the process of determining what a company will receive in exchange
for its products. Pricing factors are manufacturing cost, market place,
competition, market condition, Quality of product.

Setting the price

As this is the new bike with new additional features of ABS and GPS, so
reasonable price should be set according to the following factor.

 Selecting the price objective.

 Determine demand.
 Estimate cost.
 Analyzing competitors cost price and offers.
 Selecting price method.
 Final price

Selecting the price objective

 Product quality leadership
As the product has special feature of Flying Marcel characterized by high
level of perceived quality and features with price just high enough but not out of
customers reach.

 Determining the demand

1. Product is distinctive because of its special feature which makes it different

from others.

2. Buyers less aware of substitute since there is no other player in the market
with such features, so in respect of its features buyers will not get any substitute.

3. Expenditure is smaller part of the buyers’ total income. Since the price of
footwear is small part of the total income.

4. The product has more quality and exclusiveness. So according to this market
for the product will be fewer prices sensitive and price can be kept a little higher
than other products.

 Estimating cost

The total cost depends on fixed and variable cost. It is important to know how
cost varies with different levels of production, and accordingly costs are
estimated. Economies of scale are used to minimize the cost in long run.

 Analyzing competitor cost price and offer

PRICE COMPARISON OF DIFFERENT BRANDS

BRANDS
Category(upper PRICE RANGE
middle-lower middle)
Hero Splendour 50000-62000

Honda Shine 60000-67000

TVS Apache 78000- 230000

 Bajaj Pulsar 70000 - 110000

Since the product has added features and enhanced quality so the product will
be perceived similar to product in upper middle and in lower middle category so
the price of the product will be compared with Hero, Honda, TVS, Bajaj.

 Selecting A Price Method

GOING RATE PRICING

Our product’s price is based largely on competitor’s price, by comparing

quality, and features. Our product is compared with products in upper middle
and lower middle category i.e. with Hero, Honda, TVS, and Bajaj.

 Selecting Final Price

Finally selecting the price additional factors like the impact of other marketing
activities, company pricing policies, gain and risk sharing pricing are
considered.

Promotion
Marketing activity used to communicate to consumer about the organization its
product, its activity and directly or indirectly expenditure.

 Promotion mix
 Advertising
 Sales promotion
 Direct marketing public relation

Advertising: A paid form of non personal communication through media.

We are promoting our bike as it provides with various features.

 we have created a product which is beneficial for the customer ,because no
such bike has been launched yet which have GPS and ABS along with
reasonable pricing and good quality.

Sales promotion: An activity or material that Offer a direct inducement to

purchase.

We can do our sales promotion by:

1. Event sponsorship by sponsoring events on New Year eve.
2. Advertisement on wheels.
3. Contests: Contest can be organized to build brand image and increase
the sales volume.
4. Tying up with core companies having brand name and involved in
making only best engines and other accessories and also provided
with health care gadgets to get the benefits of their brand value and
increase the sales volume.
5. Using print media
 Sport magazines
 Weekly magazines e.g. India today
 Health magazines
 Newspaper
6. Electronic media
 Adds on TV and internet
 Radio
 Bill boards.

Direct marketing public relation:

Public relation will be used to explain the benefits of Flying Marcel. Direct
marketing like internet and catalogues will be used to inform the targeted
segments about the feature of the bike and various models of the product.

Place
Distribution is one of the four elements of marketing mix. An organization or
set of organizations (go-betweens) involved in the process of making a product
or service available for use or consumption by a consumer or business user.

DISTRIBUTION CHANNEL

Chain of intermediaries, each passing the product down the chain to the next
organization, before it finally reaches the consumer or end-user. This process is
known as the 'distribution chain' or the 'channel.' Each of the elements in these
chains will have their own specific needs, which the producer must take into
account, along with those of the all-important end-user.

CHANNELS
A number of alternate 'channels' of distribution may be available:

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They
may be just as important for moving a service from producer to consumer in
certain sectors, since both direct and indirect channels may be used. Hotels, for
example, may sell their services (typically rooms) directly or through travel
agents, tour operators, airlines, tourist boards, centralized reservation systems,
etc.
There have also been some innovations in the distribution of services. For
example, there has been an increase in franchising and in rental services - the
latter offering anything from televisions through tools. There has also been
some evidence of service integration, with services linking together, particularly
in the travel and tourism sectors.

CHANNEL LEVELS
 There are four channel levels by which a company can reach to consumers.

 Zero Level Channel

 1- Level Channel

But we will be using only 2 channels for our product distribution.

1. Zero level channels consist of a manufacturer selling directly to final

consumer. We will be selling our bike by online booking and instant delivery
service.

2. 1-level channels, in 1-level channel we use only one intermediary or

distributor, who will supply goods to the retailer and they will also provide
feedback to the company about demand of consumers.
Exclusive showrooms can be used with wide coverage to cover different price
points and target different segment of customers, which will generate sales
volume.

MARKETING RESEARCH
Marketing research according to American marketing association is defined as
“Marketing research is the function which link the consumer, customer and
public to the marketer through information, information used to identify and
define marketing opportunities and problems generate, refine and evaluate
marketing actions, monitor marketing performance and improve understanding
of marketing as a process”
Marketing research is systematic design collection analysis and reporting of
data relevant to a specific marketing situation facing an organization. Every
marketer need research marketing research engage in a wide verity of activities,
ranging from market potential and market share studies, to assessments of
customer satisfaction and purchase behavior to studies of pricing, product,
distribution and promotion activates.
Although most large companies have their own marketing research departments,
they often use outside firms to do special research takes as special studies. A
company with no research department hasn’t bought the series of research
firms.
STEPS IN RESEARCH DESIGN PROCESS

1) Define the research problem

2) Estimation of value of information to the provided by the

research

3) Select the data collection method

4) Select the measurement techniques

5) Select the sample

6) Select the analytical approach

7) Evaluate the ethics of the research

8) Specify the time and the financial cost

9) Prepare the research proposal

Objective
a. To know the Market Potentiality of bikes in the market
b. To know the satisfaction level of customers
c. To analyze the attitude of consumer towards bikes

METHODOLOGY
The research design chosen was descriptive in nature as it involved
effectiveness study to determine the awareness of the company as its products
since the population in Patiala is very vast, it is difficult to carry out 100% study
with in a limited time period. Hence sample survey technique of method was
adopted for the study field work was carried out to collect the necessary data.

Sampling techniques
Population: 4.5 lakhs
Sample size: 10 consumers
Sampling unit: Collection of data was made from customer i.e. respondents.

Tools for data collection

a. Primary data: A structural interview schedule/questionnaire was used as

a tool for primary data collection from respondents.
b. Secondary data: Books, Journals, Magazines, websites.

Limitation of the study

1) A constraint of time limited my sample was to only a few representative
of the universe.
2) The study was restricted and certain area of Patiala city only.
3) The reluctance on the apart of respondents to be in receptive method
 4) This study is time bound and may not be applicable with passage of time
(due to changes in market price of existing brand and introduction of new
brands etc).

ANALYSIS AND INTERPRETATION

1) Age

valid Frequency
(%)
15-20 2
20-25 5
25-30 1
30-40 2

AGE
6

3
FREQUENCY
2

0
15-20 20-25 25-30 30-40

Interpretation
According to survey it is clear that 15-20 age of respondents 20%, 20-25 age
50% and 25-30 age 10% & 30-40 age 20%.
2) Occupation

VALID FREQUENCY
government 2
employee
private employee 1
Student 5
Other 2

occupation
6

3
frequency
2

0
Government private employee student other
employee

Interpretation
According to above graph it is clear that 20% Government employee, 10%
Private employee, 50% Student, 20% Other’s.

4) Do you have a bike?

 VALID FREQUENCY
YES 8
NO 2
TOTAL 10

DO YOU HAVE ABIKE?

9
8
7
6
5
4 DO YOU HAVE ABIKE?
3
2
1
0
YES NO

Interpretation
According to the survey it is clear that 80% people are having own bike &20%
people are not having own bike.

4) Which company?
Frequency
Hero 5
Bajaj 1
Honda 2
TVS 0

which company
6

frequency
3

0
Hero Bajaj Honda TVS not respodent

Interpretation
From the above graph it is clear that the most of respondent having Hero bike
50%, 10% Bajaj, Honda bike 20%, 0% T.V.S, and 32% not respond.

5) What purpose purchasing this particular model?

Frequency
Quality 2
Resale value 2
 Mileage 5
Good looking 1

6
purchasing purpose
5

Frequency3

0
Quality Resale Value Mileage Good looking

Interpretation
From the above graph it is clear that 20% of respondent considering quality,
20% of resale value, 50% of mileage, 10% Considering Good looking.

6) Are you satisfied with your bike?

Frequency
Performance 3
Mileage 4
Maintenance cost 2
After sales 0
other 1
 are you satisfied with bike?
4.5
4
3.5
3
2.5
2 frequency
1.5
1
0.5
0
performance mileage maintaince cost afersales other

Interpretation
It is clear that 30% of them are satisfied through Performance 30, Mileage 40%,
Maintenance cost 20%, after sales service 0% and 10% other.

7) Have you compared the bike with other model before purchasing?

Frequency
Hero bikes 3
Bajaj bikes 3
Honda bikes 3
TVS 1
 3.5

2.5

frequency
1.5

0.5

0
Hero bikes bajaj bikes Honda bikes TVS

Interpretation
From the above graph it is clear that for 30% of respondents comparing to Hero,
30% of respondent compare Bajaj, 10% T.V.S bikes, 30 %of Honda bikes.

8) What are the most important reasons for purchasing this particular this
model?

Frequency
Engine capacity 2
Model reputation 3
Resale value 1
Good looking style 1
Durability 1
Not respondent 2

reason for purchasing

3.5

2.5

1.5

0.5

0
Enginee model resale value good looking durability not respodent
capacity reputation style

Interpretation
From the above graph it is clear that 20% of respondent to purchase the bike for
engine capacity, 30% model reputation, 10% of Resale value, 10% of more
people purchasing the vehicle for good/look style, 10% of Durability, and 20%
not respond.

9) Which company's bike would you like to purchase?

Frequency
Hero bikes 4
Bajaj 1
TVS 0
Honda 1
New company 2
Not respondent 2

4.5
4
3.5
3
2.5
2
frequency
1.5
1
0.5
0
hero bajaj tvs honda new not
company respondent

Interpretation:
From the above graph it is clear that 40% of respondents intend to purchase
hero, 10% of them intend to purchase Bajaj, 0% of TVS, 10% of them intend to
purchase Honda, 20% of them intend to purchase new company bike and 20%
of them not respond.
10) Are you aware of new bike Hero-Honda Splendor plus?

Frequency
yes 7
No 3
8
7
6
5
4
frequency
3
2
1
0
yes no

Interpretation
From the above graph it is clear that 70% of them are aware of Hero Honda
Splendor plus and 30% of them are not aware of Hero Honda Splendor plus.

11) How do you come to know about the Hero-Honda splendor plus?
Frequency
TV advertisement 2
Friends 3
Family 3
Self interest 0
Reputation 1
Newspaper adv. 1
 3.5

2.5

1.5 frequency

0.5

0
TV adv. friends family self interest reputation newspaper
adv.

INTERPRETATION
It is clear that maximum percentage(20%) of respondents has come to know
about Hero Honda Splendor plus through TV ads, 30% of respondents Friends,
30% of family, 0% of self-interest,10% News paper advertisement, 10% of
them model reputation.

12) Are you aware of features Hero-Honda Super splendor given below?

Frequency
Multi Reflector tail 0
light
Trendy, vibrant 3
graphics
New design silencer 1
Multi reflector 2
headlight
Self start 4

4.5

3.5

2.5

2 frequency

1.5

0.5

0
muklti reflector trendy, vibrant new design multi reflector self start
tail light graphics silencer headlight

Interpretation
From the above graph it is clear that 0% of respondents aware of multi reflector
tail light, 30% of them Trendy, vibrant graphics,10% of them New design
silencer, 20% Multi reflector headlight,40% of them aware of Self start.
13) What purposes the vehicle will be use?
Frequency
commuting work 2
Going out with wife/family 2
Carrying goods for business purpose 3
Going to school/college 3
Others 0
total 10
 3.5

2.5

1.5
frequency

0.5

0
commuting work Going out with Carrying goods Going to Others
wife/family for business school/college
purpose

Interpretation
From the above graph it is clear that 20% of them respondent will use the
vehicle for commuting the work, 20% of them respondent Going to out with
wife and family, 30% of respondent carrying the goods for business purpose,
30% of them Going to school/college.

14) Would you like to buy new reliance company bike with new
technology?

Frequency
Yes 6
No 4
 7
6
5
4
3 frequency
2
1
0
yes no

Interpretation
60% of respondent like to purchase new reliance company bike and 40% not
want to purchase reliance bike.

QUESTIONNAIRE
Sir / Madam
1) Name ______________________________________
2) Age 15-20 20-25 25-30 30-40
3) Occupation Government employee Private
employee
Student Businessman
Others
4) Do you have a bike? a) Yes b) No

5) Which Company? a) Hero b) Bajaj

 c) TVS d) Yamaha
e) Honda

6) What Purpose of purchasing this Particular Model?

a) Quality b) Resale Value
c) Mileage d) good looking

7) Are you satisfied with your bike? a) Performance b) Mileage

c) Maintenance cost d) after sale

service
e)Mention if any ____________
8) While purchasing this motorcycle model compared it with the model of
other two wheeler companies also?
a) Yes b) No

9) B) If Yes, the other models that I compared it with are,

a) Hero Honda bikes b) Bajaj bikes
c) TVS bikes d) Yamaha
bikes
e) Honda

10) What are the three most important reasons for purchasing this particular
model?
Are, (TICK THREE BOXES ONLY)
Engine Capacity (cc) Model reputation
Low maintenance cost Feel proud to own it
Power/Pick up Resale value
Easy finance scheme Good looks/style
Fuel efficiency Reasonable Price
Riding comport Driving on rough roads
New bike in the Market Easy to ride
Service Network Durability

11) Would you like to purchase a new bike?

a) Yes b) No

12) Which company’s bike would you like to purchase?

a) TVS b) Bajaj
c) Hero- Honda d) Honda
e) New company

13) Are you aware of new bike Hero Honda Splendor plus?
a) Yes b) No

14) How do you come to know about Hero Honda Splendor plus?
a) TV advertisement b) Friends
c) Family d) Self interest
e) Newspaper advt. f) Model
reputation

15) Are you aware of features Hero Honda Super Splendor given below?
S.NO. Features Yes No
 a. Multi Reflector tail light
b. Trendy, vibrant graphics
c. New design silencer
d. Multi reflector headlight
e. Self start

16) What purposes the vehicle will be use? (Cross two boxes only)
a) Commuting work
b) Going out with wife/family
c) Carrying goods for business purpose
d) Going to school/college
e) Traveling for field work
f) Others(specify)______________________________

17) Would you like to buy new company bike at lower price than others
a) Yes b) No