TABLE OF CONTENTS

STUDENT UNDERTAKING CERTIFICATE ACKNOWLEDGEMENT EXECUTIVE SUMMARY

i ii iii iv

1. INTRODUCTION
Indian two-wheeler industry Introduction of bajaj Introduction of hero Honda Marketing strategy

2. METHODOLOGY
Objectives of the study Data Collection Source

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3. FINDINGS AND ANALYSIS

Marketing mix of bajaj Marketing mix of Hero Honda

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Sales analysis Findings 42

4. CONCLUSION 5. RECOMMENDATIONS 6. LIMITATIONS 7. BIBLOGRAPHY

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48

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INTRODUCTION

INDIAN TWO-WHEELER INDUSTRY: A Perspective Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognised as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group.

OVERVIEW OF TWO WHEELER INDUSTRY

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 twowheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.

Motorcycles are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers. The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies lead to the arrival of new models of twowheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry.

Talking of the two wheeler industry, the names that effortlessly come to us is Bajaj Auto, Hero Honda, TVS Motor, Yamaha Motor, Kinetic and others. The two wheeler segment has played an important role in giving a push to the automobile industry in India. In fact, the production, sales and exports of the two wheelers is a fair indication of the growing importance that it enjoys in this country's manufacturing economy. An overview of the two wheeler industry makes this clear that the two wheelers are among the most sought after automobiles in India for some time and the trend is likely to stay for a while. The economic growth, need for better conveyance and gradually improving road infrastructure coupled with better credit and financing options, have acted as a major catalyst in encouraging the growth and development of the two wheeler segment in India. Further, the new and improved features on the two wheelers, their stylish and trendy looks and a rage with the country's youth who form a substantial influence in determining the consumer behavior have ensured that the two wheelers remain on top of the automobile industrys agenda in India.

INTRODUCTION OF BAJAJ

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance.

The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest twoand three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Bajaj Auto limited is one of the largest two wheeler manufacturing company in India apart from producing two wheelers they also manufacture three wheelers. The company had started way back in 1945. Initial it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. By the year 1970 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have become an integral part of the Indian milieu and over the years have come to represent the aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki heavy industries of Japan to produce the latest motorcycles in India which are of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited includes Learning, Innovation, Perfection, Speed and Transparency. Bajaj Auto has huge, extensive and very well-equipped Research and Development wing geared to meet two critical organizational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad, and development of eco-friendly automobile technologies. While the manpower strength of the R & D represents cross-section of in-depth design and engineering expertise, the company has also been investing heavily in the latest, sophisticated technologies to scale down product

development lifecycles and enhance testing capabilities. Bajaj Auto R & D also enjoys access to the specialized expertise of leading international design and automobile engineering companies working in specific areas.

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

Rahul Bajaj today heads the group. He has been the Chief Executive Officer of Bajaj since 1968 and is recognized as one of the most outstanding business leaders in India. As dynamic and ambitious as his illustrious predecessors, he has been recognized for his achievements at various national and international forums. He is one of India's most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

The company profile is as follows: Type Founded Headquarters Key people Public 1945 Pune, Maharashtra, India Rahul Bajaj (chairman) Rajiv Bajaj (Managing director) Revenue Employees Website Rupees 81.063 billion (2005) 10,250 (2006-07) www.bajajauto.com 7

INTRODUCTION OF HERO HONDA

The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in1984. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date.

Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle Splendor. The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry.

Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. The Group Chairman, Mr. Brij Mohan Lall Munjal has actively looked at diversification. A considerable level of vertical integration in its manufacturing activities has been present in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Expansion into the automotive segment started with the setting up of Majestic Auto Limited, where the first moped designed entirely in India, Hero Majestic, went into commercial production in 1978. Hero Motors, in collaboration with Steyr Daimler Puch of Austria introduced the introduced another moped, the Hero Puch, in 1980. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles.

Milestones of the year 2009 are as follows: Hero Honda GoodLife Program launched. Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. In recognition of his contribution to industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government. Profile oh the company is as follows Founded India Headquarters Key people January 19, 1984 in gurgaon, haryana New Delhi, India Brijmohan Lal Munjal (chairperson and founder) Toshiaki Nakagawa (joint managing Pawan Munjal (Managing Director & CEO) Motorcycles, Scooters Revenue U$ 2.8 billion

director)

Products

Type Industry Revenue

Public Company Automotive U$ 2.8 billion (approx)

MARKETING STRATEGIES

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Marketing Strategy is a set of specific ideas and actions that outline and guide decisions on the best or chosen way to create, distribute, promote, and price a product or service (manage the marketing mix variables). Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centered around the key concept that customer satisfaction is the main goal. Marketing strategy is a method of focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market segments, positioning, marketing mix, and allocation of resources. It is most effective when it is an integral component of overall firm strategy, defining how the organization will successfully engage customers, prospects, and competitors in the market arena. Corporate Strategies ,corporate missions and corporate goals. As the customer constitutes the source of a company's revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. The Marketing Mix is the way, the marketing strategies is put into action-in other words the actions arising from the marketing plan. MARKETING MIX The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives. Marketing mix refers to the combination of four basic elements which constitute the core of a companys marketing system. These four elements are-product, price structure, the promotional activities and the distribution system (place). These 4 ps are closely interrelated and because decisions in one area

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influence actions in others. and create strategies and action plans to successfully market your products or services.

4 Ps of Marketing Mix

Product Product refers to a combination of various features relating to the product or service to be offered for sale. It involves decisions concerning the quality, size, range, package, brand name, label, warranty and services, etc. These products related activities are directed usually at a specific group of consumers rather than at consumers at large.

Price The price is the amount a customer pays for the product. It means the money value that the customer has to pay in exchange for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

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Place place represents the location where a product can be purchased. It is often referred to as the distribution channel. Its purpose is to make the product or service available to customers at the right time and at the right place.

Promotion Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. A certain amount of crossover occurs when promotion uses the four principal elements together, which is common in film promotion. Advertising covers any communication that is paid for, from and cinema commercials, radio and Internet adverts through print media and billboards. One of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. This category has grown each year for the past decade while most other forms have suffered. It is the only form of advertising that targets all five senses and has the recipient thanking the giver. Public relations are where the communication is not directly paid for and includes press releases, sponsorship deals, exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth and Public Relations.

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RESEARCH METHODOLOGY

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Research in common parlance refers to a search for knowledge. The purpose of research is to discover answers to questions though the application of scientific procedures. In short research is art of scientific investigation.

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. Research methodology refers to the tools and methods used for obtaining information for the purpose of the subject under study. The objectives of the research are as follows: To compare the marketing strategies of Bajaj and Hero Honda motorcycles. To study the growth of automobile companies i.e. Bajaj and Hero Honda. To determine who is more dominant in the market. To find out the various factors responsible for the growth of dominant automobile company.

The methodology followed for this project report is as follows:

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Data Collection Source Information was collected through secondary sources. Secondary Data: Any data, which have been gathered earlier for some other purpose, are secondary data in the hands of researcher. Those data collected first hand, either by the researcher or by someone else, especially for the purpose of the study is known as primary data. The data collected for this project has been taken from the secondary source. Sources of secondary data are: Internet Magazines Publications Newspapers Brochures

SWOT analysis will also be used.

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ANALYSIS

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BAJAJ AUTO PRODUCT MIX OF BAJAJ MOTORCYCLES The product offers a service to the customers so as to satisfy their need. The product provided by the Bajaj suites the Indian Roads. And the Indian Consumers have a perception that the Bajaj provides genuine products. The product is perfectly designed and the entire switch are well placed, which provides a good riding condition. Some of the bikes provided by the Bajaj are as follows: 1. Pulsar- 180 2. Pulsar-150 3. Platina 4. Discover 5. XCD The product specifications of two Bajaj motorcycles which are randomly taken are: Some features of Bajaj Pulsar DTS-I are as follows:

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Pulsar Value Specification Engine Type Cooling Type Displacement Max Power Max Torque Electrical System Head Lamp Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Wheel Base Kerb Weight 4 stroke, DTS-i Air Cooled 178.6 cc 17.02 @ 8500 (Ps @ RPM) 14.22 @ 6500 (Nm @ RPM) 12 V Full DC 35/35 W with 2 pilot lamps Telescopic, 130 mm stroke Triple rated spring, 5 way adjustable with 101 mm travel Nitrox shock absorber 90/90 * 17 - Tubeless 120/80 * 17 - Tubeless 260 mm Disc 130 mm Drum 15 litres (3.2 litres reserve, 2 litres usable) 1345 (mm) 147 kg

Bajaj Platina 125 DTS-Si:

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Platina Value Specification Engine Type Cooling Type Displacement Max Power Max Torque Electrical System Head Lamp Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Wheel Base Kerb Weight 4 stroke, DTS-i Air Cooled 124.60 cc 9.50 HP @ 6700 RPM 10.85 NM @ 5000 RPM 12 V 35/35 W Halogen Bulb Hydraulic, Telescopic Type Hydraulic, SNS Type 2.75 * 17 3.00 * 17 180 mm Disc 130 mm Drum 13 litres 1275 (mm) 113 kg

Price Mix of Bajaj Auto Ltd.

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Pricing is an important component of marketing mix of firm. Determining the prices of different products of a firm is a very difficult task of the marketing manager. Price denotes money value of a product. It represents the amount of money for which a product can be exchanged. In other words, prices represent the money which the buyer pays to the seller for a product price represents the exchange value of goods and services in terms of money. Price is all around. Price factor has very well been touched by the manufactures. The manufactures (Bajaj) are charging very comparatively cheaper prices then their competitors. The pricing strategy of the company is very set. They price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment & demand of the product in the market.

Place Mix of Bajaj Auto Ltd.

Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels at hero Honda. Other factors such as a convenient location or more personalized service allow hero Honda to charge a competitive price. Making sure your price is standards, however, by checking to see what competitors' prices are of similar product.

There are about many regional offices located in major cities through out the country and there are more than 10,000 dealers through out the country. For the product distribution the company distributes its products through authorized dealers. The variety products are easily available in showrooms.

PLANTS PLANT LOCATIONS

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Bajaj Auto's three plants at Akurdi, Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttranchal..

Akurdi Waluj Chakan Pant Nagar

Geared Bajaj

scooters,

ungeared -

scooters, Pulsar

CT100 and

and

Discover

Bajaj - Kawasaki range of motorcycles and three-wheelers motorcycles Discover Bajaj motorcycles - Platina

PROMOTION MIX OF BAJAJ AUTO LTD. Promotion is an important part of marketing mix of business enterprises. It is spark plug of the marketing mix. Promotion is the process of communication with the potential customer involving information, persuasion and influence distribution.

It includes all types of

personal or impersonal communication with customers as well as middleman in The purpose of promotion is to inform, persuade and influence the prospective customers. Personal selling, advertising, publicity and sales promotion are widely used to inform the people about the availability of product and create among them the desire to buy the products.

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With a wide distribution network globally, it clearly shows Bajaj represents India in the automobile sector especially in two-wheelers. The brand name Bajaj is enough for its promotion. Bajaj has not endorsed any of the celebrity as its brand ambassador but once it has introduced Hollywood star Jackie Chan in one of its TV ads. Bajaj doesnt spend much on television promotion but whenever it launches a new product it advertises intensively through all medium such as TV, radio, newspapers, magazines etc. Advertisement campaigns like Hamara Bajaj in 90s and Buland Bharat ki Buland tasveer left its mark in Indian ad industry and up to some extent these ads have worked for Bajaj.

The promotion is the coordination of all seller initiated affords to setup channels of information and persuasion to facilitated the sale of a product or service or accepted of an idea. The various promotional activities adopted by the Bajaj Auto Company. The company has 100crore rupees for its promotional activities out of which 75% is sponsored by the company and 25% from the dealers. They may sign a celebrity for its promotional activities in recent futures. The company provides free services to its customers in comparison to its competitors. The company provides good services facilities to its customers through dealers service station. Dealers encourage its customers by giving discount, providing interest loan schemes, prices, coupons etc. The various promotional activities adopted by Bajaj Auto ltd. are as follows: Credit & finance schemes Free services to the consumers Advertisements on Televisions, Newspapers, Magazines Road Shows

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Free trials for the new consumers

Exchange offers by arranging exchange melas.

Monsoon Mela.

Mega service camps.

HERO HONDA Product Mix Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments. Hero Honda bikes in India are in great demand because of the high level of quality and superior technical skills. Hero Honda has carved a niche in the competitive Indian market for churning out motorcycles with high fuel efficiency and low maintenance. Hero Honda products are reputed for low maintenance and high fuel efficiency. Some of the bikes provided by the Hero Honda are as follows: 1. Splendor NXG 2. Passion Plus 3. Glamour 4. karizma

The product specifications of two Hero Honda motorcycles which are randomly taken are: Some features of Hero Honda Karizma is discussed as follows: Hero Honda Karizma is the best that has been launched in India. Now it gets even better with the all new racer edition : The New Karizma R. The price of Karizma is Rs.84000 and the engine packs an awesome 17 horse power in a 223cc Engine..

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How does it look? Indian bikers always wished for a bike like this, a real sporty looking bike, and their dreams have come true with the Karizma. On the first look, people would comment that the bike looks like a fighter jet! The air pockets in the front of the tank has been very precisely carved to blend aerodynamics with beauty. Hero Hondas Engineers have put in several months of work in developing their flagship model Karizma. It is not easy to bring a foreign style to India without compromising the engine capacity and mileage (which are the most important factors for Indian bikes). The is technically the first bike in India in which the doom blends with the main body of the bike. One big advantage of this is that the handle bars are free to turn because there is no extra weight attached to it (like the head light and dashboard). Karizma is the first bike in India which came with pre-installed alloy wheels. People would like the tail part of Karizma very much. This is perhaps the only bike in India which features dual tail lamps. When you look at the tail part, it does look like a jet. The slogan Jet Set Go is perfect. The seat is little raised for the pillion rider which gives 25

it a really sporty look. The bike has been so perfectly designed that I could not imagine a suggestion for improvement. Considering the overall size of the bike, the tail part does seem to have the right size. In Pulsar, you can notice that the tail is too small compared to the size of its tank, but in Karizma the proportion of the sizes of various parts is perfect. How does it perform? Karizma is undoubtedly the bike with the highest horse power in India. (Considering bikes within the 1 Lakh Range). For a bike of 223 cc, 17 hp is really great! While driving, you can feel the surge of acceleration (and the surge of adrenalin!). You feel like like Hrithik Roshan if you give a full twist to the throttle. This bike is suitable both for city riding and riding in highways. As you put the fifth gear and slowly accelerate, the bike maintains its stability upto 110 Kmph, but later it gets a little shaky. Looking into the dash board of the Karizma, we can see 2 dials, a RPM meter and a Speedometer and next to it is the digital panel which displays Fuel, a Trip meter, total distance and a digital clock! people really love the clock, people do not need to leave the handle bars to check the time in their wrist while driving. The high beam and neutral indicators are situated in the speedometer dial. The indicators are bright enough so that you can easily see its status in bright sunlight.

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Some people may think that such fast sport bikes are risky, but in my opinion, Karizma is the safest bike in India. Provided with adequate wheel base and body weight, the bike comes to halt easily from very high speeds without losing any stability. How does it stand out?

For people who love this bike, it is really hard to admire the competition. Right now Pulsar 220cc seems to be the only competition for Karizma, but it does not even stand a chance with this legend. Hero Honda Karizmas high cost and size is not just for the looks and power. Along with it you also get something priceless. the Self Confidence and the King of the Road feeling. If in your college or institution, you are the only one with a Karizma, imagine the kind of feeling of uniqueness you will get. People will admire you for your bike and you will be known as The man who rides the Karizma. Too many people have already bought Pulsars, CBZs and Apaches.. If you are planning to buy a 150cc bike, wait for a few months, raise some more money and go for the best. Because great people drive great bikes.

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This is perhaps the only bike which has got full rating in BikeAdvices Reviews. BikeAdvice Overall Rating : 5/5 Performance Rating : 5/5 Beauty Rating Pros Cons : No leg guard Karizma Specifications: Engine: Air-cooled single cylinder 4 stroke OHC Displacement : 223 cc Maximum Power Maximal Torque Gear Box : 12.68 KW (17 PS) @ 7000 RPM : 18.35 N-m @ 6000 RPM : 5/5 : Sporty Looks, Fuel Efficiency, The first of its Kind in India

Acceleration : 0 60 Kmph in 3.8 Seconds : 5 Speed Brakes: 276mm Front Disc and 130 mm Rear Drum Tires : Front: 2.75 x 18 42P, Rear: 100/90 x 18 56P Fuel Capacity : 15 Litres (+ 2 Litres Reserve)

Some features of Hero Honda Glamour is discussed as follows: Hero Honda Glamour is a perfect blend between the higher end so called sporty bikes and lower end 100cc bikes.

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Hero Honda Glamour 125cc Styling: The bike stands out with its unique design in the hood. Aerodynamically shaped air pockets on both sides of the head lamp add to the head turning effect of the bike. With sporty stickering on the sides and optimum overall size of the body, the bike will be appealing to majority of the Indian audience. The grooves in the tank are perfectly blended even for a 6 foot tall man to accommodate his knees with comfort. The size of the tank is not too big or too small. Perfect. The fuel switch is significantly different than other bikes, big and easy to handle. The sides of the tails looks like it are adopted from former Ambition 135. The tail lamps are also perfectly designed, not too aggressive or too plain.

Performance: The bike has a 4-speed gear system, all in one way. Great for city riding. If you are finding it difficult for changing the gears in one down, four up system, you would love Glamour. The 125cc engine gives a very good job of giving a smooth ride at

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higher speeds. This is primarily because of the positioning of the engine. Note that unlike other bikes, the piston in the engine moves back and forth instead of up and down. So it is natural that the vibration is reduced in this case.

Before talking about performance one shouldnt hide the fact that many users have reported poor mileage for Hero Honda Glamour. On an average the mileage of the bike is 45 50 kmpl. But after 3 months of regular servicing, you should get more than 50 kmpl for sure. Some have reported 60kmpl constant mileage.

The dash board has three dials as shown above. The most viewed speedometer is placed at the center prominently which Is appreciate. No digital display! May be in the next version of Glamour we can expect one. Cute fuel indicator and other leds.

Verdict: If you are buying a 125cc bike, you most probably will upgrade it after a few years of use. So before you buy, dont just think about the performance, but consider the give away aspect. Hero Honda and Honda bikes have better resale value than Bajaj and TVS. The engines are more durable and give good performance even after years of use. Pros: Looks, Smoothness, Quality Cons: Varying mileage across different units Hero Honda Glamour Specifications: Displacement : 124.7cc Max power Max torque :9bhp at 7000rpm : 1.05kgm at 4000rpm t: 72.17 bhp per litre

Specific output

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Valve gear

: 2 per cylinder, sohc : 9.1 : 1 : Electronic CDI, carburettor

Compression ratio Ignition and fuel Tyres front Tyres rear

: 2.75 x 18 inches : 3.00 x 18 inches

Front Brakes : 215mm disc/130mm drum Rear Brakes : 130mm drum Length: 1995mm Width : 735mm Height : 1095mm Wheelbase Kerb weigh : 1295mm : 13.6 litres : 125/129 kg Fuel tank capacity

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PRICE MIX Pricing is an important component of marketing mix of firm. Determining the prices of different products of a firm is a very difficult task of the marketing manager. Price denotes money value of a product. It represents the amount of money for which a product can be exchanged. In other words, prices represents the money which the buyer pays to the seller for a product price represents the exchange value of goods and services in terms of money. Determining price levels and pricing policies is the major factor affecting revenue. Factors such as the demand for the good, the market price, and customer responsiveness to price changes influence the price levels at hero Honda. Other factors such as a convenient location or more personalized service allow hero Honda to charge a competitive price. Making sure your price is standards, however, by checking to see what competitors' prices are of similar product.

The manufactures (hero Honda) are charging their prices according to the market competition. The pricing strategy of the company is very set. They price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment & demand of the product in the market. Hero Honda bikes price range starts from around 32000 rupees. the internet reviews say that karizma is the fastest bike under the range of bikes costing under 1 lakh. Hero Honda has bikes priced with respect to all the classes of the society.

PLACE MIX The company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer touch points. These

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comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealerappointed outlets across the country.

PLANTS

PLANT LOCATIONS Hero Honda's three plants are at Dharuhera, Gurgaon (Haryana) and Haridwar (Uttaranchal). All three plants support together a capacity of five million units. Company is also planning to open a fourth plant and is scouting for a location.

PROMOTION MIX Promotion is an important part of marketing mix of business enterprises. It is spark plug of the marketing mix. Promotion is the process of communication with the potential customer involving information, persuasion and influence distribution.

It includes all types of

personal or impersonal communication with customers as well as middleman in The purpose of promotion is to inform, persuade and influence the prospective customers. Personal selling, advertising, publicity and sales promotion are widely used to inform the people about the availability of product and create among them the desire to buy the products.

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The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation. Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010. Hero Honda actively participates in sponsorship in the entertainment world like award functions like Star Screen Awards. Hero Honda has roped in celebrities like Hrithik Roshan, Saurav Ganguly and Priyanka Chopra as its brand ambassadors, actively promoting the dhak dhak go campaign.

SALES ANALYSIS

Above histogram depicts the sales of motorcycles in India, May 2010.

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The country's largest two-wheeler maker Hero Honda today reported its highest monthly sales ever at 435,933 units in May, registering 13.92 per cent increase over the same month last year. In a statement, Hero Honda said that it had sold 382,678 units in May last year. The previous highest monthly sales record at 415,137 units was set in August 2009, the statement said. Bajaj Autos motorcycle sales in May this year (2010) jumped by 63.28 per cent to 2,69,488 units from 1,65,049 units in the year-ago (2009) period. Bajaj Auto Limited attributed the growth in bike sales to its Pulsar and Discover range of motorcycles, which sold 75,974 units and 1,07,076 units, respectively, in April. Hero Honda bikes are toping the lists in this current year also.

SALES ANALYSIS FOR THE CURRENT YEAR 2010 IS AS FOLLOWS: BAJAJ AUTO: A Lot of buzz has happened in Bajajs two wheeler market. For the first time ever, Bajaj vehicles have crossed the 3 lakh mark and sold at 3,29,364 units in August 2010, as againts, 2,89,176 units sold in August 2009. This is a whooping 55% of sales. Now, where does the major chunk of sales come from? The answer is Bajaj Discover 150 where the demand is as high as 45000 units per month, while the company produces only 26,000 units per month.One of the key reasons of Discover 150s success is the price tag. Discover 150 is as affordable as a 100 cc bike, which means, the buyer needs to put no extra money, but can still enjoy a better performance as well as good fuel efficient bike. Bajajs volume sellers are the Discover brand and Pulsar brand. The Pulsar brands new volume seller is the Pulsar 135 LS. After the launch of this particular model, which leads the 125-135 cc segment bikes, buyers could afford for a stylish motorcycle that has power 35

of a premium 150 cc motorcycle and at the same time, offered at a lower price tag. Pulsar 135 LSs attractive styling, loads of featuers such as the digital speedometer, LED rear tail lamp, split seat and two-piece handlebar, all are summing upto a strong sales volume for Bajaj, inspite of the competition.

HERO HONDA: Hero Honda, Indias largest two-wheeler maker, has reported a growth of 2.28% in its august sales. Hero Honda sold 4,24,617 units of vehicles in August 2010 as against 4,15,137 units of vehicles in the same year last month. Hero Honda has been selling more than 4,00,00 units of vehicles in a single month cosecutively for 4 times. Hero Hondas largest selling bike is the Splendor, followed by Passion. Hero Hondas 125 cc segment has also witnessed demand surge. Hero Hondas 150 cc bikes, the Hunk and CBZ-Xtreme are also witnessing consistent demand. Hero Hondas only automatic scooter variant, the Pleasure is selling more than 27000 units per month. Hero Honda has recently launched the new Super Splendor with improved graphics, Intelligent Ignition System, new carburetor and ACG for improved engine performance. Additional features such as Pass switch, push cancel indicator switch, muffler with heat shield and new headlamp with translucent visor. 125 cc segment bikes contribute to 20% of the total bike sales. As the competition is heating up with Yamaha launching YBR 125 and Suzuki launching Slingshot, Hero Honda has answered it with the refurbished Super Splendor. Hero Honda may also launch the much-awaited Hunk-2010 in the festive season. This will heat up the competition in 150 cc segment.

SWOT ANALYSIS 36

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a Project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphery, who led a convention at Stanford University in the 1960s and 1970s using data from fortune 500 companies. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much research. The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability survey.

BAJAJ MOTORCYCLES STRENGTH: Strengths are internal capabilities that can help the company reach its

objectives:
It is a specialty good and a durable good. It is a high involvement product. Well equipped and trained staff. Easy availability of spare parts in the market. Highly experienced management. Product design and development capabilities. Extensive R & D focus. 37

 Widespread distribution network. High performance products across all categories. Great financial support network (For financing the automobile) High economies of scale and scope... Ability to understand customers needs and wants. Recognized and established brand name. The varieties of products are increasing.

WEAKNESS: Weaknesses are internal elements that may interfere with the

Companys ability to achieve its objectives.

Regional office should be located in mid of Delhi. No promotional activities by celebrities. Hasn't employed the excess cash for long. Not a global player in spite of huge volumes. Not a globally recognizable brand. Strong competitors like TVS , HERO HONDA , HONDA etc. OPPORTUNITY: Opportunities are areas of buyers needs or potential interest in which the company might perform profitability. They are all external factors. Since it is the second leading competitor it has chance to grow. High growth rate of the industry. Encouragement of innovation theory. Double-digit growth in two-wheeler market. Untapped market above 180 cc in motorcycles. Growing demand for entry-level motorcycles especially in emerging markets. Expansion of target market 38

THREAT: Threats are challenges posed by an unfavorable trend or development that could lead to lower sales and profit. They are external factors. The main threat is from the leading competitor. Entry of Foreign motors bikes in the market. Threat of second hand motorcycles. Margins getting squeezed from both the directions (Price as well as Cost).

HERO HONDA MOTOTCYCLES STRENGTH: Strengths are internal capabilities that can help the company reach its

objectives:
Ability to understand customer needs and wants. Recognized and established brand name. Effective advertising capability. Good in after sales service. Technology Maintenance cost is low. Resale value of the products is high. Companys name is with fuel efficient bikes and connectivity. Product design and development capabilities

WEAKNESS: Weaknesses are internal elements that may interfere with the Companys ability to achieve its objectives.

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 Hero is vulnerable in the joint venture because Honda company has no much power. Brand name of hero itself has no influence in the automobile industry. OPPORTUNITY: Opportunities are areas of buyers needs or potential interest in which the company might perform profitability. They are all external factors. Global expansion. Expansion of target market. Financial help easily available. Relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two wheeler vehicles. Large market for the high performance segment which is increasing with the upliftment of the lifestyle of people. THREAT: Threats are challenges posed by an unfavorable trend or development that could lead to lower sales and profit. They are external factors. Honda motorcycles India can take away market share and can cause joint venture to go sour. Bajaj automobiles are a strong competitor. The big giant like Harley-Davidson will introduce soon in the market. Increment in the price of petrol Increment in the price of aluminium and steel. Pollution norms.

Outcome of the SWOT analysis of both the companies: STRENGTH: Strengths of both the companies are more or less similar with both companies offers a wide range of products with services, strong financial facilities,

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technology, promotional strategies. But Hero Honda steals the show here as it not only has a recognized and established brand name but also have more product designing capabilities and innovative skills. WEAKNESS: Bajaj is not a globally recognizable brand. while Hero Honda is a global brand because of the joint venture between hero group and Honda. Bajaj auto is not a global player. Bajaj is not much strong in the application of promotional strategy as compared to hero Honda. OPPORTUNITY: Bajaj Auto has a high scope for growth . where as hero Honda is already well established and has a scope for Global expansion. Expansion of the target markets is the opportunity for both the companies. Both companies can also improve in the customer satisfaction sector by providing more and better facilities.

THREAT: The basic threat to any automobile company is the competition. The market leader is always a threat to other companies in the market. Other threats are common to the automobile companies like increment in petrol prices, increment in aluminum steel prices etc.

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FINDINGS

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Both Automobile companies Bajaj and hero Honda are already present in the market, and acquire a huge section in the market.

Bajaj under its marketing strategies makes it sure to provide a huge variety of bikes with distinctive features. The pricing strategy of the company is very set.

Under the distribution strategy, bajaj automobile has its network throughout the country; distribution is done through authorized dealers, and has more than 10,000 dealers.

Bajaj does not spend much on promotion through celebrities. It concentrates more on promoting through television advertisements and magazines etc.

Hero Honda bikes are in great demand because of high level of quality and superior technical skills. Under the pricing strategy, hero Honda caters to all the sections of the society.

Hero Honda has an extensive sales and service network across the country. Hero Honda has been actively promoting and follows an extensive promotional strategy. It promotes through all the fields of entertainment and sponsorship.

Both the automobile companies have made lot of efforts to position themselves in the market. With bajaj having distinctively ahead as its punch line, Hero Honda is not behind with the dhak dhak go . Both companies concentrates highly on the promotional strategies.

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The company Hero Hondas most popular model is the Hero Honda Splendor which is the world's largest-selling motorcycle, selling more than one million units per year.

Global slowdown may effect export growth of Bajaj auto in the key markets. Failure of expected new launches can impact the sales volume. Hero Honda retains worlds No.1 two wheeler manufacturers for the 9th consecutive year.

Hero Honda has over 59% share in domestic motorcycle industry.

The company Hero Honda has been consistently receiving accolades this year as it won coveted awards across segments, for its products, innovation, and for exceeding customer expectations. The company was honored with the award of the Most Preferred Two Wheeler Company at the recent CNBC Awaaz Consumer Awards. In August, Hero Honda was adjudged the Company of the Year at the prestigious Economic Times Corporate Excellence Awards 2009. Trusted Brand (Motorcycles) 2009 award by Readers Digest magazine.

The sales analysis clearly states the current market leader, dominating the market.

The SWOT analysis shows that Hero Honda has more strengths and less threats as compared to Bajaj and Hero Honda has more opportunities in the global sector.

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CONCLUSION

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Both Bajaj and hero Honda bikes acquire a huge section in the automobile sector of the country. These automobile companies have tried and are still working on their marketing strategies to improve the sales statistics and achieve customer satisfaction. And also has been constantly in the process of innovation and product development to create more demand and desire for their products among customers.

Both companies are a huge competition to each other and are well in demand by the customer. But the comparative analysis states, hero Honda to be better option to go for with not only a wide range of products, high level of quality and superior technical skills, customer oriented price levels, and distribution throughout the country it also pays huge attention to the environmental and social commitments. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind. So far the market leader has been Hero Honda and it has tried to project its brands in a very different manner and has been successful in creating a differentiated image.

One of the key pillars of Hero Hondas winning strategy has been to consistently keep introducing new, advanced products and maintaining a balanced product portfolio. True to this strategy and with the objective of bringing added cheer to customers during the festive season. Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

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The comparison of the marketing Strategies, Sales analysis and SWOT analysis makes it clear that Hero Honda is the market leader with a lot more scope to expand its production n services. Its key policies help to build its differentiated image: Environment Policy: Hero Honda has committed itself to integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain. Quality Policy: Hero Honda is committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations. Safety Policy: Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business performance, motivated workforce and higher productivity.

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Recommendations

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Bajaj should appoint a brand ambassador and also sponsor entertainment and sports events so that the name of the company remains in the minds of the people

Bajaj should introduce some more models having more engine Power and fuel efficiency.

Bajaj should appoint a brand ambassador and also sponsor entertainment and sports events so that the name of the company remains in the minds of the people

The company should focus on projecting their bikes as Hero Honda bikes. One reason, which I find is that Hero Honda has positioned the bikes as separate brands and have not associated Hero Honda names with bikes. Therefore the company must use Brand names with sub brands. Like Bajaj Pulsar, TVS Victor, etc for better positioning of the brand.

Hero Honda should keep up the good work and work on opportunities to achieve better results.

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LIMITATIONS

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It is said that Nothing is perfect and if the quote is true I am sure that there would be few shortcomings in this project also. Sincere efforts have been made to eliminate Discrepancies as far as possible but few would have been remained due to limitations of the study. Although the project has been worked out at its best yet there are some limitations, which cannot be overlooked. Had these limitations been overcome, the findings would be accurate. Some of the limitations are: 1) Time constraint: Time was really a limiting factoring the project. Its really difficult to work out such a large project between two months time.

2)

Data constraint: All the data that has been collected for this project, has been taken from secondary sources like websites, magazines, newspapers and book. However, every effort is made to ensure that these do not in any way adversely affect the results of the study and inject an element of objecting

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BIBLOGRAPHY

Books: Kotler, Philip Marketing Management (Ninth Edition)

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Magazines and newspaper: Auto India - Car & Bike Magazine

Websites: website:www.herohonda.com website: www.bajajauto.com website: www.bikeadvice.com website:www.totalmotorcycle.com www.vicky.in

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