QMM Project Report

A PROJECT REPORT ON
AUTOMOBILE INDUSTRY
IN INDIA
(SPECIAL FOCUS ON
BAJAJ PULSAR BIKES)
SUBMITTED TO :
Prof. Ms.Shivani bali
(Faculty of QMM )
BY GROUP 1
NIHAREIKA SINHA
PADMADEVI
SAURABH PANDEY
GAURANG SAHLOT
ISHA VASHIST
SIRAJ SIDDIQUI
1
INDEX
1. ACKNOWLEDGMENT……………………………………….
………………3
2. INTRODUCTION………………………………………………….
……………4
3. COMPANY PROFILE(BAJAJ AUTO LTD)
…………………………..14
4. OBJECTIVE OF
STUDY……………………………………………..……….18
5. IMPORTANCE OF
STUDY………………………………………………….18
6. METHODOLOGY……………………………………………………
………….19
7. MARKET SHARE AND GROWTH
RATES………………………….20
8. MARKET
STRUCTURE……………………………………………………….2
2
9. PRIMARY DATA
ANALYSIS……………………………………………….23
2
10. SALES
FORECASTING……………………………………………………
47
11. CORRELATION……………………………………………………
…………55
12. PRICEANALYSIS…………………………………………………
………… .58
13. CONCLUSION………………………………………………………
…………59
14. APPENDIX……………………………………………………………
………….72
15. REFERENCES……………………………………………………
……………..73
Acknowledgement
3
We are extremely grateful to Ms. Shivani bali for providing us
the honor of carrying out the project, which helped us to put our
learning’s into experience. Without her guidance we would not
have been able to proceed with our project in the right direction.
We would like to express our sincere regards to the staff of

LBSIM, New Delhi, whose help and guidance enables us to
know what exactly consumer’s preference towards television is
all about.
We would also like to thank our family friends and relatives

who have helped us and supported us in all possible ways.
A Project report needs co-operation, guidance and experience of

many more other than the persons whose name appears on the
cover, we would like to thank each and everyone who have
helped us in our endeavor.
INTRODUCTION
4
The Indian automotive industry consists of five segments: commercial
vehicles; multi-utility vehicles & passenger cars; two-wheelers; three-
wheelers; and tractors. With 5,822,963 units sold in the domestic market
and 453,591 units exported during the first nine months of FY2005
(9MFY2005), the industry (excluding tractors) marked a growth of 17%
over the corresponding previous. The two-wheeler sales have witnessed
a spectacular growth trend since the mid nineties.
Two-wheelers: Market Size & Growth
In terms of volume, 4,613,436 units of two-wheelers were sold in the
country in 9MFY2005 with 256,765 units exported. The total two-
wheeler sales of the Indian industry accounted for around 77.5% of the
total vehicles sold in the period mentioned
Figure 1:Segmental Growth of the Indian Two Wheeler Indust
ry
5
(FY1995-2004)
After facing its worst recession during the early 1990s, the industry
bounced back with a 25% increase in volume sales in FY1995.
However, the momentum could not be sustained and sales growth
dipped to 20% in FY1996 and further down to 12% in FY1997. The
economic slowdown in FY1998 took a heavy toll of two-wheeler sales,
with the year-on-year sales (volume) growth rate declining to 3% that
year. However, sales picked up thereafter mainly on the strength of an
increase in the disposable income of middle-income salaried people
(following the implementation of the Fifth Pay Commission's
recommendations), higher access to relatively inexpensive financing,
and increasing availability of fuel efficient two-wheeler models.
Nevertheless, this phenomenon proved short-lived and the two-wheeler
sales declined marginally in FY2001. This was followed by a revival in
sales growth for the industry in FY2002. Although, the overall two-
wheeler sales increased in FY2002, the scooter and moped segments
faced de-growth. FY2003 also witnessed a healthy growth in overall
two-wheeler sales led by higher growth in motorcycles even as the sales
of scooters and mopeds continued to decline. Healthy growth in two-
wheeler sales during FY2004 was led by growth in motorcycles even as
the scooters segment posted healthy growth while the mopeds continued
to decline. Figure 1 presents the variations across various product sub-
segments of the two-wheeler industry between FY1995 and FY2004.
6
Demand Drivers
The demand for two-wheelers has been influenced by a number of
factors over the past five years. The key demand drivers for the growth
of the two-wheeler industry are as follows:
▪ Inadequate public transportation system, especially in the semi-urban

and rural areas;
▪ Increased availability of cheap consumer financing in the past 3-4
years;
▪ Increasing availability of fuel-efficient and low-maintenance models;
▪ Increasing urbanisation, which creates a need for personal
transportation;
▪ Changes in the demographic profile;
▪ Difference between two-wheeler and passenger car prices, which
makes two-wheelers the entrylevel vehicle;
▪ Steady increase in per capita income over the past five years; and
▪ Increasing number of models with different features to satisfy diverse
consumer needs.
7
MARKET CHARACTERISTICS
Demand
Segmental Classification and Characteristics
The three main product segments in the two-wheeler category are

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

The Indian two-wheeler industry has undergone a significant change
over the past 10 years with the preference changing from scooters and
mopeds to motorcycles. The scooters segment was the largest till
FY1998, accounting for around 42% of the two-wheeler sales
(motorcycles and mopeds accounted for 37% and 21 % of the market
respectively, that year). However, the motorcycles segment that had
witnessed high growth (since FY1994) became larger than the scooter
segment in terms of market share for the first time in FY1999. Between
FY1996 and 9MFY2005, the motorcycles segment more than doubled
its share of the two-wheeler industry to 79% even as the market shares
of scooters and mopeds stood lower at 16% and 5%, respectively.
Figure 2
10
Trends in Segmental Share in Industry Sales
(FY1996-9MFY2005)
While scooter sales declined sharply by 28% in FY2001, motorcycle

sales reported a healthy growth of 20%, indicating a clear shift in
consumer preference. This shift, which continues, has been prompted by
two major factors: change in the country's demographic profile, and
technological advancements.
Over the past 10-15 years the demographic profile of the typical two-
wheeler customer has changed. The customer is likely to be salaried and
in the first job. With a younger audience, the attributes that are sought of
a two-wheeler have also changed. Following the opening up of the
economy and the increasing exposure levels of this new target audience,
power and styling are now as important as comfort and utility.
The marketing pitch of scooters has typically emphasised reliability,

11
price, comfort and utility across various applications. Motorcycles, on
the other hand, have been traditionally positioned as vehicles of power
and style, which are rugged and more durable. These features have now
been complemented by the availability of new designs and technological
innovations. Moreover, higher mileage offered by the executive and
entry-level models has also attracted interest of two-wheeler customer.
Given this market positioning of scooters and motorcycles, it is not
surprising that the new set of customers has preferred motorcycles to
scooters. With better ground clearance, larger wheels and better
suspension offered by motorcycles, they are well positioned to capture
the rising demand in rural areas where these characteristics matter most.
Scooters are perceived to be family vehicles, which offer more

functional value such as broader seat, bigger storage space and easier
ride. However, with the second-hand car market developing, a
preference for used cars to new two-wheelers among vehicle buyers
cannot be ruled out. Nevertheless, the past few years have witnessed a
shift in preference towards gearless scooters (that are popular among
women) within the scooters segment. Motorcycles, offer higher fuel
efficiency, greater acceleration and more environment-friendliness.
Given the declining difference in prices of scooters and motorcycles in
the past few years, the preference has shifted towards motorcycles.
Besides a change in demographic profile, technology and reduction in
12
the price difference between motorcycles and scooters, another factor
that has weighed in favour of motorcycles is the high re-sale value they
offer. Thus, the customer is willing to pay an up-front premium while
purchasing a motorcycle in exchange for lower maintenance and a
relatively higher resale value.
Supply
Manufacturers
As the following graph indicates, the Indian two-wheeler industry is

highly concentrated, with three players-Hero Honda Motors Ltd
(HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd
(TVS) - accounting for over 80% of the industry sales as in 9MFY2005.
The other key players in the two-wheeler industry are Kinetic Motor
Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd
(LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd
(Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle &
Scooter India (P) Ltd (HMSI).
Figure 3
Shares of Two-Wheeler Manufacturers in Industry
Sales (FY2000-9MFY2005)
13
Although the three players have dominated the market for a relative long
period of time, their individual market shares have undergone a major
change. Bajaj Auto was the undisputed market leader till FY2000,
accounting for 32% of the two-wheeler industry volumes in the country
that year. Bajaj Auto dominance arose from its complete hold over the
scooter market. However, as the demand started shifting towards
motorcycles, the company witnessed a gradual erosion of its market
share. HHML, which had concentrated on the motorcycle segment, was
the main beneficiary, and almost doubled its market share from 20% in
FY2000 to 40% in 9MFY2005 to emerge as the market leader. TVS, on
the other hand, witnessed an overall decline in market share from 22% in
FY2000 to 18% in 9MFY2005. The share of TVS in industry sales
fluctuated on a year on year basis till FY2003 as it changed its product
mix but has declined since then.
14
Technology
Hitherto, technology transfer to the Indian two-wheeler industry took

place mainly through: licensing and technical collaboration (as in the
case of Bajaj Auto and LML); and joint ventures (HHML).
Table 2
Technological tie-ups of Select Players

Nature of Alliance Company Product
Bajaj Auto Technological tie-up Kawasaki Heavy Industries Ltd, Japan Motorcycles
Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers
Technological tie-up Kubota Corp, Japan Diesel Engines
HHML Joint Venture Honda Motor Co, Japan Motorcycles
KEL Technological tie-up Hyosung Motors & Machinery Inc Motorcycles
KEL Tie up for manufacturing Italjet, Italy Scooters

and distribution
LML Technological tie-up Daelim Motor Co Ltd Motorcycles
Hero Motors Technological tie-up Aprilia of Italy Scooters
.BAJAJ Auto limited

Bajaj Auto is a major Indian automobile manufacturer. It is India's
largest and the world's 4th largest two- and three-wheeler maker. It is
based in Pune, Maharashtra, with plants in Akurdi and Chakan
(Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj
15
Auto makes and exports motorscooters, motorcycles and the auto
rickshaw.
The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at
1946.
Over the last decade, the company has successfully changed its image
from a scooter manufacturer to a two wheeler manufacturer. Its product
range encompasses scooterettes, scooters and motorcycles. Its real
growth in numbers has come in the last four years after successful
introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5
billion.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj
Trading Corporation Private Limited. It started off by selling imported
two- and three-wheelers in India. In 1959, it obtained license from the
Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977,
it managed to produce and sell 100,000 vehicles in a single financial
year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it
managed to produce and sell 500,000 vehicles in a single financial year.
In 1995, it rolled out its ten millionth vehicle and produced and sold 1
million vehicles in a year.
BAJAJ PULSAR
16
Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India. The
two wheeler was developed by the product engineering division of Bajaj
Auto in association with motorcycle designer Glynn Kerr Tokyo R&D.
Currently there are four variants available -with engine capacities of
150cc, 180 and two variants with capacities of 220 cc. More than a
million units of Pulsar were sold by November 2005. A Pulsar 200
variant was discontinued in July 2009. With monthly sales of more than
48,000 units in June 2009, Pulsar is the leader in the 150 cc segment in
India with a market share of 43%.
Before the introduction of the Pulsar, the Indian motorcycle market trend
was towards fuel efficient, small capacity motorcycles (that formed the
80-125 cc class). Bigger motorcycles with higher capacity virtually did
not exist (except for Enfield Bullet). The launch and success of Hero
Honda CBZ in 1999 showed that there was demand for performance
bikes. Bajaj took the cue from there on and launched the Pulsar twins in
India on November 24, 2001. Since the introduction and success of Bajaj
Pulsar, the Indian youth began expecting high power and other features
from affordable motorcycles.
DTSi
DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto trademark.
Bajaj Auto holds an Indian patent for the DTSi technology. The Alfa
Romeo Twin-Spark engines, the BMW F650 Funduro which was sold in
India from 1995 to 1997 also had a twin-spark plug technology, and the
Rotax motorcycle engines,more recently Honda's iDSI Vehicle engines
use a similar arrangement of two spark-plugs. However very few small
17
capacity engines did eventually implement such a scheme in their
production prototypes.
Key players in the Bike segment :
• BAJAJ AUTO
• HERO HONDA
• TVS
• YAMAHA
• ROYAL ENFIELD
Objective of Study
The objective of this research is to determine the customer as well as
retailers preferences regarding different brands of motorcycles which
result in their market share. It involves the study of consumers’ buying
behaviour and attitudes towards a variety of attributes and factors, which
help them in decision-making.
The additional brand we chose to focus on was BAJAJ AUTO Ltd.’s
PULSAR brand of bikes. We studied the Industry profile, its market
structure, the brand awareness, growth rates and popularity among
18
consumers so as to forecast the future sales and understand the growth
trends.
We designed a questionnaire to survey various consumers of bikes to
understand the demand and supply situation of the bike market.
Secondary data from the internet has also been used for effective
analysis.
Importance of Study
The importance of this study is to practically understand the relevance of

the concepts of QMM in the business organisations and here in the
realm of the motorcycles industry. The present market scenario was
analyzed and future demands forecasted using the simple regression
techniques, ANOVA & Other general statistical tools. Also, a
comprehensive study of the major factors involved in this market was
conducted so as to see how different and similar a market structure is
from the theories.
Methodology
Primary data collection:

For primary data collection we designed a questionnaire to survey
various consumers. The objective of survey was to understand the
19
consumer preferences among various brands of motorcycles available in
the market and the factors affecting consumer buying process.
The sample size for the survey was around 140-150.
Secondary data collection:

Internet was the major source for secondary data. Apart from
understanding the bike industry in general and Bajaj in specific, our
major task was to analyse the consumer demand for Bajaj’s PULSAR’s
brand and project the future sales for the company. We have used the
trend projection and exponential forecasting technique to predict the
sales.
Market share and Growth rates

Two- wheeler sales in the country have sky rocketed in the recent years,
and the annual sales of motorcycles in India expected to cross the 10
million mark by 2010. The low penetration of two-wheelers in the
20
country 31 two-wheelers per 1000 citizens (2004) leaves immense scope
for the growth of the market. Overall the industry sales of two-wheelers
have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in
2005/2006. The buoyant Indian economy with a growth rate of around
8% per annum is further expected to fuel the growth of two wheelers in
the country.
The share of motorcycles have increased over the years, while that of
other two-wheelers like geared scooters, scooterettes and mopeds have
shown a negative growth or remained stagnant. The two-wheelers have
penetrated 7% of rural house hold and 24% of urban markets, thus it
leaves an immense scope for the market to grow.
Bajaj Auto one of the leading producers of automobiles in the country
has been able to sell close to 2.3 million vehicles in 2005/2006, the sales
of the company grew by almost 31%. The company registered a 32%
growth in the sales of motorcycles much above the industry average of
19%. Bajaj Auto has emerged as a market leader in the entry level or
price segment motorcycle with the Bajaj CT 100 accounting for nearly
40% of the market share. It also commands a 62% market share in the
premium segment of motorcycles with products like the Bajaj Pulsar
DTSI. TVS Motors which has lots of firsts to its credit in the two-
wheeler sector in the country was able to sell 1.34 million units during
the same period thus registering an overall growth of 15% from the
previous year. In the motorcycle segment the company's growth in sales
was in sync with the industry average.
f this figures have daunted you the best is yet to come, the country leader
in two-wheelers hero honda have crossed the three million mark during
the year 2005/2006 which is a good few lakhs more than its nearest
competitor Bajaj Auto. The company accounted for nearly 40% of then
two-wheeler market. In the motorcycle segment the company has been
21
able to attain a market share of about 50%. The segment in which hero
honda has emerged as a clear winner is the Deluxe segment, which is the
largest segment in the motorcycles category, with its flagship family of
motorcycles splendor selling over 1.2 million units which is just a shade
less than all the two wheelers sold by TVS during the same year.
The motorcycle category is expected to see a further growth and

according to industry experts it will drive all other category of two-
wheelers to the periphery.
The table below shows the over all trend of Industry Sales over a 5 year
period. The figures are provided by the Society of automobile
Manufactures Association (SIAM).
Two-wheeler domestic sales trend
Motorcycles
2001-02 2002-03 2003-04 2004-05 2005-06

2887194 3647493 4170445 4964753 5815417
22
MARKET STRUCTURE
Market Structure
This industry is a high volume, medium growth sector characterized by

excess/ idle capacities owing to in efficient operations. Imports have not
been influencing prospects, as high government regulations limit this .
Characteristics
• BIKES : primarily a commodity market - price sensitive

• Effective distribution chain - through a simple network of dealers
and franchises.
• Regulation - Emission norms as well as import regulations are in
existence.
• Market - Urban areas are the largest market for Pulsar, followed by small
towns and then rural centres.
The market of motorcycles shows a monopolistic structure due to the

following factors:
• Different and many players in the market
• Differentiated products.
• Prices charged are different.
• The competition is a non price competition i.e on the basis of

advertising and delivering differentiated products.
PRIMARY DATA ANALYSIS
23
1. Age group classification of customers preferring Bajaj Pulsar
18-24 24%
24-30 38%
30-36 19%
ABOVE 36 19%
As is clear the maximum buyers are of the age group 24-30 , hence it
can be interpreted as being popular in college going youth.
2. Bikes owned (categorisation)-
pulsarbajaj Splendor
Apache Unicorn
cd-dawn enfield
bullet(old)hunk enticer
ct100 CBZ
Pulsar DTS i hero honda
3.ANUAL HOUSEHOLD INCOME
24
<I LAKH 0%
1-3 15%
LAKH
3-5 35%
LAKH
5-10 35%
LAKH
>10 15%
LAKH
incomegroupshareof survey
40%
35%
% share
30%
25%
20% Series1
15%
10%
5%
0%
<I LAKH 1-3LAKH 3-5LAKH 5-10 >10LAKH
LAKH
income group
incomegroupshareofsurvey
<I LAKH
1-3LAKH
3-5LAKH
5-10LAKH
>10LAKH
Which shows that a majority group belonging to the pulsar kind of bikes
is more from the income group category 3-5 & 5-10 lakh group.
Moreover none of the customer was from < 1 lakh category which is also an
important finding from the marketing point of view.
25
Summary report (graphical representation of collected data on a 10 point
scale ratio for the given sample size)
4.purpose of the bike
(office/traveling/household/adventure/other)
1 LOWEST 30%
-
2 10%
3 15%
4 5%
5 HIGHEST 40%
-
LOWEST HIGHEST
26
1 - LOWEST 5%
2 20%
3 35%
4 40%
5 - HIGHEST 0%
LOWEST HIGHEST
1 - LOWEST 1 5%
2 9 45%
3 1 5%
4 6 30%
5 - HIGHEST 3 15%
LOWEST HIGHEST
OTHER
27
1 - LOWEST 33%
2 0%
3 33%
4 0%
5 - HIGHEST 33%
LOWEST HIGHEST
PLEASE SPECIFY THE OTHER FACTOR
College, small town movement, status ,shopping
28
5.Buying decision
Mileage/looks/brand/service/price
1 LOWEST 0%
-
2 0%
3 30%
4 25%
5 HIGHEST 45%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 25%
4 35%
5 HIGHEST 40%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 20%
29
LOWEST HIGHEST 4 45%
5 HIGHEST 35%
-
1 LOWEST 0%
-
2 15%
3 55%
4 25%
5 HIGHEST 5%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 40%
4 30%
5 HIGHEST 30%
-
LOWEST HIGHEST
30
6.Purchasing decision
Friends/family/dealer/adventure/other
1 LOWEST 0%
-
2 5%
3 55%
4 0%
5 HIGHEST 40%
-
LOWEST HIGHEST
31
1 LOWEST 15%
-
2 15%
3 25%
4 20%
5 HIGHEST 25%
-
LOWEST HIGHEST
1 LOWEST 25%
-
2 40%
3 30%
4 5%
5 HIGHEST 0%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 10%
3 50%
4 15%
5 HIGHEST 25%
-
32
LOWEST HIGHEST
OTHER FACTORS
1 LOWEST 75%
-
2 0%
3 0%
4 25%
5 HIGHEST 0%
-
LOWEST HIGHEST
College, work requirements
33
7.Chosen media
Television/hoarding/print media/internet/other
1 LOWEST 0%
-
2 0%
3 0%
4 15%
5 HIGHEST 85%
-
LOWEST HIGHEST
1 LOWEST 5%
-
2 15%
3 20%
4 45%
5 HIGHEST 15%
-
LOWEST HIGHEST
34
1 LOWEST 0%
-
2 5%
3 10%
4 60%
5 HIGHEST 25%
-
LOWEST HIGHEST
1 LOWEST 30%
-
2 20%
3 20%
4 20%
5 HIGHEST 10%
-
LOWEST HIGHEST
OTHERS
35
1 LOWEST 50%
-
2 25%
3 25%
4 0%
5 HIGHEST 0%
-
LOWEST HIGHEST
IF OTHERS PLEASE SPECIFY
Radio,pamphlets
8.Brand power – Easy recall

36
Bajaj/herohonda/Yamaha/Honda/tvs
1 LOWEST 0%
-
2 0%
3 10%
4 25%
5 HIGHEST 65%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 0%
4 60%
5 HIGHEST 40%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 35%
3 30%
4 35%
5 HIGHEST 0%
-
37
LOWEST HIGHEST
1 LOWEST 5%
-
2 5%
3 45%
4 35%
5 HIGHEST 10%
-
LOWEST HIGHEST
TVS
1 LOWEST 15%
-
2 50%
3 25%
4 10%
5 HIGHEST 0%
-
38
LOWEST HIGHEST
8.Bike on preference
Pulsar/apache/f-z 150/hunk/other
1 LOWEST 0%
-
2 0%
3 10%
4 45%
39
LOWEST HIGHEST 5 HIGHEST 45%
-
1 LOWEST 0%
-
2 5%
3 30%
4 65%
5 HIGHEST 0%
-
LOWEST HIGHEST
1 LOWEST 5%
-
2 0%
3 5%
4 30%
5 HIGHEST 60%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 10%
3 40%
4 50%
40
LOWEST HIGHEST 5 HIGHEST 0%
-
ANY OTHER
1 LOWEST 0%
-
2 0%
3 0%
4 50%
5 HIGHEST 50%
-
LOWEST HIGHEST
IF OTHER,PLEASE SPECIFY
Splendor,karizma
41
9.Perception parameters about pulsar
Style/power/performance/value/brand
1 LOWEST 0%
-
2 0%
3 25%
4 20%
5 HIGHEST 55%
-
LOWEST HIGHEST
42
1 LOWEST 0%
-
2 5%
3 20%
4 45%
5 HIGHEST 30%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 45%
4 35%
5 HIGHEST 20%
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 5%
3 35%
4 55%
5 HIGHEST 5%
43
-
LOWEST HIGHEST
1 LOWEST 0%
-
2 0%
3 10%
4 80%
5 HIGHEST 10%
-
LOWEST HIGHEST
Some direct inferences

.Factors influencing the buying behavior
44
Brand recall
Sale forcasting
45
Sales forecast of Pulsar for the year 2008 using Least Square
method (which is same as simple linear regression method):
YEAR SALES(S)in T T2 ST
Crores
2000 865 1 1 865
2001 1011.55 2 4 2023.1
2002 1374.94 3 9 4124.82
2003 1512.43 4 16 6049.72
2004 1647.86 5 25 8239.3
2005 1799.6 6 36 10797.6
TOTAL 8211.38 21 91 32099.54
46
PRICE REGRESSION PRICE ANALYSIS
47
bike vs price in india
100
90
80
70
bike price
60
50 Series1
40
30
20
10
0
M llet
F r r gy
Li x
Pu r
En e
G m
k
0
Pa isco r
Am us
ZX tiva
er
ro
n
Be m
o
0
t
xe
D lsa
ss ve
iri
ru
By
10
ls
tio
17
er
o
do
be
am
Pl
Sp
Bu
Pu
C
Bo
Zo
Fi
Ac
bi
F-
ax
ee
n
io
bike type
bike price distribution in india
100
90
80
70
Types of bikes
60
50 Series1
40
30
20
10
0
0 20 40 60 80 100
price range
The maximum number of bikes lie in the range between 40-50 thousands which is also a
usp of pulsar as it is almost near to the given range and provides a better value for money.
48
Spirit
veiw of bikes in india w ith price M 80
90
Saffir
80 Cheta
Cheta
70
Byk
60 Byk
Calibe
50
Price Calibe
40 Boxer
Boxer
30
Boxer
20 Pulsa
Pulsa
10
Pulsa
0 Pulsa
1 Elimin
Bikes W ind
W ind
Disco
Disco
Splen
49
ANOVA ANALYSIS OF THE PRIMARY COLLECTED DATA
(THROUGH SPSS SOFTWARE)
AGE WISE ANALYSIS
WHAT IS THE PURPOSE OF YOUR BIKE?
ANOVA
Sum of Squares df Mean Square F Sig.
OFFICE Between Groups 162.915 3 54.305 35.321 .000
Within Groups 181.421 118 1.537
Total 344.336 121
TRAVELLLING Between Groups 2.750 3 .917 2.695 .049
Within Groups 40.143 118 .340
Total 42.893 121
HOUSEHOLD Between Groups 40.089 3 13.363 51.478 .000
Total 70.721 121
ADVENTURE Between Groups 56.741 3 18.914 22.350 .000
Total 156.598 121
50
The purpose of bike is significantly different depending on different age groups.
The use of bike for Office, household, and Adventure varies significantly at 99%
level of confidence for different age groups; whereas the use of bike for traveling
varies at 95% level of confidence.
: RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING

DECISION?
51
ANOVA
MILEAGE Between Groups 8.654 3 2.885 4.179 .008
Total 90.107 121
LOOKS Between Groups .500 3 .167 .265 .851
Total 74.795 121
BRAND Between Groups 5.888 3 1.963 3.801 .012
Total 66.820 121
SERVICE Between Groups 13.860 3 4.620 10.871 .000
Total 64.008 121
PRICE Between Groups 12.686 3 4.229 6.556 .000
Total 88.795 121
52
Mileage, service, and price emerged as significantly different key factors affecting
the buying decision of different age groups at 99% confidence level.
WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE

DECISION?
53
ANOVA
FRIENDS Between Groups 44.577 3 14.859 19.839 .000
Total 132.959 121
FAMILY Between Groups 44.785 3 14.928 9.109 .000
Within Groups 193.379 118 1.639
Total 238.164 121
DEALER Between Groups 26.695 3 8.898 22.255 .000
Total 73.877 121
ADVERTISEMENT Between Groups 8.311 3 2.770 3.899 .011
Total 92.164 121
Purchase decision of the different age groups varied depending on the influence of
friends, family, and dealer at 99% confidence level.
54
WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO
NOTICE AN ADVERTISEMENT ?
55
ANOVA
TELEVISION Between Groups 1.957 3 .652 5.213 .002
Total 16.721 121
HOARDING Between Groups 88.227 3 29.409 52.467 .000
Total 154.369 121
PRINT_MEDIA Between Groups 9.916 3 3.305 8.488 .000
Total 55.869 121
INTERNET Between Groups 39.882 3 13.294 12.963 .000
Within Groups 121.011 118 1.026
Total 160.893 121
The likelihood of noticing an advertisement on the various media like Television,

Hoarding, Print media and internet varied significantly for different age groups at
99% confidence level.
56
WHICH BRAND NAME DO YOU FIND EASY TO RECALL?
57
ANOVA
BAJAJ Between Groups 11.105 3 3.702 27.680 .000
Total 26.885 121
HERO_HONDA Between Groups 14.462 3 4.821 38.287 .000
Total 29.320 121
YAMAHA Between Groups 22.203 3 7.401 18.510 .000
Total 69.385 121
HONDA Between Groups .477 3 .159 .169 .917
Total 111.508 121
TVS Between Groups 21.893 3 7.298 36.979 .000
Total 45.180 121
Brand recall for the brands Bajaj, Hero Honda, Yamaha, and TVS by the bike users
of different age categories had a significant difference at 99% confidence level.
58
RATE THE BIKES ON THE BASIS OF YOUR PREFERENCE
59
ANOVA
PULSAR Between Groups 11.467 3 3.822 10.777 .000
Total 53.320 121
APACHE Between Groups 15.441 3 5.147 21.114 .000
Total 44.205 121
F_Z_150 Between Groups 41.338 3 13.779 22.385 .000
Total 113.975 121
HUNK Between Groups 9.353 3 3.118 8.657 .000
Total 51.844 121
The preference for different bikes by different age group people varied
significantly for all the brands at 99% confidence level.
60
RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING
FACTORS-
61
ANOVA
STYLE Between Groups 26.187 3 8.729 18.831 .000
Total 80.885 121
POWER Between Groups 10.844 3 3.615 6.177 .001
Total 79.902 121
PERFORMANCE Between Groups 2.238 3 .746 1.261 .291
Total 72.041 121
VALUE Between Groups 5.792 3 1.931 7.161 .000
Total 37.607 121
BRAND_NAME Between Groups 8.593 3 2.864 17.415 .000
Total 28.000 121
Different age category people had a significantly different perception about Pulsar
on parameters like style, power, value and brand name [at confidence level of
99%]. Whereas the perception in terms of performance appeared to be relatively
uniform across the age-groups.
62
ANALYSIS ON THE BASIS OF
ANNUAL HOUSEHOLD INCOME
WHAT IS THE PURPOSE OF YOUR BIKE?
63
ANOVA
OFFICE Between Groups 100.234 4 25.058 12.011 .000
Within Groups 244.103 117 2.086
Total 344.336 121
TRAVELLLING Between Groups 4.483 4 1.121 3.414 .011
Total 42.893 121
HOUSEHOLD Between Groups 9.696 4 2.424 4.647 .002
Total 70.721 121
ADVENTURE Between Groups 36.239 4 9.060 8.807 .000
Within Groups 120.359 117 1.029
Total 156.598 121
The purpose of Bike differed significantly among various categories of annual

household income. Use of bike for Office, household, and adventure varied at 99%
confidence limits. Use of bike for Travelling had an insignificant difference.
64
RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING
DECISION?
65
ANOVA
MILEAGE Between Groups 41.696 4 10.424 25.193 .000
Total 90.107 121
LOOKS Between Groups 37.821 4 9.455 29.920 .000
Total 74.795 121
BRAND Between Groups 19.486 4 4.872 12.042 .000
Total 66.820 121
SERVICE Between Groups 26.367 4 6.592 20.489 .000
Total 64.008 121
PRICE Between Groups 23.462 4 5.865 10.504 .000
Total 88.795 121
All the factors affecting buying decision studied in this project had a significantly
different influence on the buying decisions of customers having different annual
household incomes.The confidence level for difference being 99%.
66
WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE
DECISION?
67
ANOVA
FRIENDS Between Groups 33.882 4 8.471 10.003 .000
Total 132.959 121
FAMILY Between Groups 55.138 4 13.785 8.812 .000
Within Groups 183.026 117 1.564
Total 238.164 121
DEALER Between Groups 4.185 4 1.046 1.756 .142
Total 73.877 121
ADVERTISEMENT Between Groups 25.190 4 6.297 11.001 .000
Total 92.164 121
Influence of Friends, family, and advertisement vary significantly at 99%

confidence level for different annual household income categories. The influence
of dealer remains relatively uniform for all the categories.
68
WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO
NOTICE AN ADVERTISEMENT ?
69
ANOVA
TELEVISION Between Groups .978 4 .244 1.817 .130
Total 16.721 121
HOARDING Between Groups 21.343 4 5.336 4.693 .002
Within Groups 133.026 117 1.137
Total 154.369 121
PRINT_MEDIA Between Groups 23.971 4 5.993 21.982 .000
Total 55.869 121
INTERNET Between Groups 26.534 4 6.634 5.777 .000
Within Groups 134.359 117 1.148
Total 160.893 121
Noticing an advertisement on Hoarding, print media, and internet varies at 99%

confidence levels for the customers of different income categories. Whereas effect
of Television remains relatively same for all income categories.
70
WHICH BRAND NAME DO YOU FIND EASY TO RECALL?
71
ANOVA
BAJAJ Between Groups 7.911 4 1.978 12.195 .000
Total 26.885 121
HERO_HONDA Between Groups 5.679 4 1.420 7.026 .000
Total 29.320 121
YAMAHA Between Groups 10.052 4 2.513 4.955 .001
Total 69.385 121
HONDA Between Groups 13.149 4 3.287 3.910 .005
Total 111.508 121
TVS Between Groups 16.155 4 4.039 16.280 .000
Total 45.180 121
All brands considered under this project had a different brand recall among the
people belonging to various income categories, the difference being in 99%
confidence levels.
72
RATE THE BIKES ON THE BASIS OF YOUR PREFERENCE?
73
ANOVA
PULSAR Between Groups 16.345 4 4.086 12.931 .000
Total 53.320 121
APACHE Between Groups 20.872 4 5.218 26.164 .000
Total 44.205 121
F_Z_150 Between Groups 33.565 4 8.391 12.210 .000
Total 113.975 121
HUNK Between Groups 13.485 4 3.371 10.283 .000
Total 51.844 121
The prefence for different bikes also varied significantly at 99% confidence levels
for all the income categories.
74
RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING
FACTORS-
75
ANOVA
STYLE Between Groups 44.475 4 11.119 35.729 .000
Total 80.885 121
POWER Between Groups 28.004 4 7.001 15.783 .000
Total 79.902 121
PERFORMANCE Between Groups 15.015 4 3.754 7.702 .000
Total 72.041 121
VALUE Between Groups 4.632 4 1.158 4.109 .004
Total 37.607 121
BRAND_NAME Between Groups 2.256 4 .564 2.564 .042
Total 28.000 121
Perception of Pulsar varied significantly at 99% confidence levels at different

parameters like Style, power, performance, and value. Whereas the perception of
brand PULSAR appeared to be uniform across various income categories.
76
CONCLUSION
The bike was launched in the year 2000, and for it to capture the largest
share of market and beat existing and flourishing brands like Hero
Honda is a great achievement.
Also the root mean square error value in the least square method
is less than that in the exponential forecasting method. Thus, the sales
predicted by least square method will be a better estimate of the future
sales than that predicted by exponential forecasting method.
The maximum buyers are of the age group 24-30 , hence it can be
interpreted as being popular in college going youth .A majority group
belonging to the pulsar kind of bikes is more from the income group
category 3-5 & 5-10 lakh group The maximum number of bikes lie in
the range between 40-50 thousands which is also a usp of pulsar as it is
almost near to the given range and provides a better value for money.
The youth were more inclined towards the adventure part of bikes
,looks, consult friends, use television and internet and prefer style and
value the most whereas for the elders go for household and office,
77
mileage, family, print, value and brand before making a bike purchase.
Annual incomes have a direct correlation with increasing demands of
consumer also. Pulsar overall enjoys a favorable demand among all the
categories and consist of maximum alluring qualities amongst the tested
ones.
APPENDIX
Questionnaire for Bike Customers

(The findings of this survey will be used only for academic purposes by the
students of Lal Bahadur Shastri Institute of Management,New delhi)
Q1.Name of the customer
Q2.Age :
• 18-24
• 24-30
• 30-36
• ABOVE 36
78
Q3.WHICH BIKE DO YOU OWN PRESENTLY ?
Q4.ANUAL HOUSEHOLD INCOME
• <I LAKH
• 1-3 LAKH
• 3-5 LAKH
• 5-10 LAKH
• >10 LAKH
Q5.WHAT IS THE PURPOSE OF YOUR BIKE?
(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE

LOWEST )
a)OFFICE
1 2 3 4 5
LOWEST HIGHEST
b)TRAVELLING
1 2 3 4 5
LOWEST HIGHEST
79
c)HOUSEHOLD
1 2 3 4 5
LOWEST HIGHEST
d)ADVENTURE
1 2 3 4 5
LOWEST HIGHEST
e)OTHER
1 2 3 4 5
LOWEST HIGHEST
Q6.RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING DECISION?
(5 BEING THE HIGHEST AND 1 BEING THE LOWEST )
80
a)MILEAGE
1 2 3 4 5
LOWEST HIGHEST
b)LOOKS
1 2 3 4 5
LOWEST HIGHEST
c)BRAND
1 2 3 4 5
LOWEST HIGHEST
d)SERVICE
1 2 3 4 5
LOWEST HIGHEST
81
e)PRICE
1 2 3 4 5
LOWEST HIGHEST
Q7.WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE DECISION?

LOWEST )
a)FRIENDS
1 2 3 4 5
LOWEST HIGHEST
b)FAMILY
1 2 3 4 5
LOWEST HIGHEST
82
c)DEALER
1 2 3 4 5
LOWEST HIGHEST
d)ADVERTISEMENT
1 2 3 4 5
LOWEST HIGHEST
e)OTHER FACTORS
1 2 3 4 5
LOWEST HIGHEST
Q8.WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO NOTICE AN

ADVERTISEMENT ?

LOWEST )
83
a)TELEVISION
1 2 3 4 5
LOWEST HIGHEST
b)HOARDINGS
1 2 3 4 5
LOWEST HIGHEST
c)PRINT MEDIA
1 2 3 4 5
LOWEST HIGHEST
d)INTERNET
1 2 3 4 5
LOWEST HIGHEST
84
e)OTHERS
1 2 3 4 5
LOWEST HIGHEST
IF OTHERS PLEASE SPECIFY
Q9.WHICH BRAND NAME DO YOU FIND EASY TO RECALL?

LOWEST )
a)BAJAJ
1 2 3 4 5
LOWEST HIGHEST
b)HERO HONDA
85
1 2 3 4 5
LOWEST HIGHEST
c)YAMAHA
1 2 3 4 5
LOWEST HIGHEST
d)HONDA
1 2 3 4 5
LOWEST HIGHEST
e)TVS
1 2 3 4 5
LOWEST HIGHEST
86
Q10.RATE THE BIKES ON THE BASIS OF YOUR PREFERENCE?

LOWEST )
a)PULSAR
1 2 3 4 5
LOWEST HIGHEST
b)APACHE
1 2 3 4 5
LOWEST HIGHEST
c)F-Z 150
1 2 3 4 5
LOWEST HIGHEST
d)HUNK
87
1 2 3 4 5
LOWEST HIGHEST
e)ANY OTHER
1 2 3 4 5
LOWEST HIGHEST
IF OTHER,PLEASE SPECIFY
Q11.RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING FACTORS-

LOWEST )
a)STYLE
1 2 3 4 5
88
LOWEST HIGHEST
b)POWER
1 2 3 4 5
LOWEST HIGHEST
c)PERFORMANCE
1 2 3 4 5
LOWEST HIGHEST
d)VALUE
1 2 3 4 5
LOWEST HIGHEST
e)BRAND
1 2 3 4 5
89
LOWEST HIGHEST
90
91
REFERENCES
1. EBSCO HOST(database)
2. PROWESS(database)
3. INDIA STATS(database)
4. Peterson, Lewis and Jain: Managerial Economics
5. www.bajajauto.com
6. http://auto.indiamart.com/motorcycles/bajaj-pulsar
7. http://www.fadaweb.com/two_wheeler_industry.htm
8. auto.indiamart.com/motorcycles
9. www.iloveindia.com/bikes/index.html
10.www.infibeam.com/bikes/make/herohonda.html
11.bikes.whereincity.com
12.www.bikesalesindia.com
13.www.infibeam.com/bikes/make/bajaj.html
14.www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.html
15.www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html
16.FOR VEIWING THE COLLECTEDPRIMARY DATA VISIT –
http://spreadsheets.google.com/ccc?
key=0Au4_eI1zvZ0YdF8yT2VCRHFKWmJZQm4zQkdlQ0d3enc&h
l=en
92
93

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A PROJECT REPORT ON

We would like to express our sincere regards to the staff of

We would also like to thank our family friends and relatives

A Project report needs co-operation, guidance and experience of

Figure 1:Segmental Growth of the Indian Two Wheeler Indust

▪ Inadequate public transportation system, especially in the semi-urban

Segmental Classification and Characteristics

The three main product segments in the two-wheeler category are

Two-Wheelers: Comparative Characteristics

Scooter Motorcycle Moped

Ignition Kick/Electronic Kick/Electronic Kick/Electronic

Segmental Market Share

While scooter sales declined sharply by 28% in FY2001, motorcycle

The marketing pitch of scooters has typically emphasised reliability,

Scooters are perceived to be family vehicles, which offer more

As the following graph indicates, the Indian two-wheeler industry is

Hitherto, technology transfer to the Indian two-wheeler industry took

Technological tie-ups of Select Players

Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers

Technological tie-up Kubota Corp, Japan Diesel Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie-up Hyosung Motors & Machinery Inc Motorcycles

KEL Tie up for manufacturing Italjet, Italy Scooters

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

Hero Motors Technological tie-up Aprilia of Italy Scooters

.BAJAJ Auto limited

Key players in the Bike segment :

The importance of this study is to practically understand the relevance of

Primary data collection:

Secondary data collection:

Market share and Growth rates

The motorcycle category is expected to see a further growth and

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

This industry is a high volume, medium growth sector characterized by

• BIKES : primarily a commodity market - price sensitive

The market of motorcycles shows a monopolistic structure due to the

• Different and many players in the market

• Prices charged are different.

• The competition is a non price competition i.e on the basis of

PRIMARY DATA ANALYSIS

Pulsar DTS i hero honda

3.ANUAL HOUSEHOLD INCOME

4.purpose of the bike

PLEASE SPECIFY THE OTHER FACTOR

College, small town movement, status ,shopping

PLEASE SPECIFY THE OTHER FACTOR

College, work requirements

IF OTHERS PLEASE SPECIFY

8.Brand power – Easy recall

Some direct inferences

bike price distribution in india

AGE WISE ANALYSIS

WHAT IS THE PURPOSE OF YOUR BIKE?

Sum of Squares df Mean Square F Sig.

OFFICE Between Groups 162.915 3 54.305 35.321 .000

Within Groups 181.421 118 1.537

Total 344.336 121

TRAVELLLING Between Groups 2.750 3 .917 2.695 .049

Within Groups 40.143 118 .340

Total 42.893 121

HOUSEHOLD Between Groups 40.089 3 13.363 51.478 .000

Within Groups 30.632 118 .260