Chapter-1 Introduction

OVERVIEW OF THE INDIAN MOBIKE INDUSTRY

The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda and TVS
Suzuki, who account for 80 percent of the total two-wheeler market. The other players including
Kinetic Engineering, LML and others account for the remaining 20 percent of the market. The
industry can be divided into three broad segments: Scooters, motorcycles and mopeds. In the
scooters segment Bajaj is the market leader, Hero Honda is the market leader in the motorcycles
segment and in the segment of mopeds, TVS controls the major chunk of the market.
Most Indian players in the two-wheeler industry had been into some kind of strategic alliance,
technical collaboration or joint venture with foreign players, mainly Japanese firms. HeroHonda, is a joint venture between the Munjal-promoted Hero Group and Honda Motor Co. of
Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (till September 2001); BajajKawasaki a joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint
venture between Escorts and Yamaha Motor Corp. (till June 2001).
Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car
segment, is yet to come to a stage where all the models are developed indigenously. For years
now, Indian companies have been dependent on their foreign joint venture partners or
collaborators to provide them with the technical know-how. This trend too is in for a change.
Leading the pack in this arena is Bajaj, which has been Successful at designing models in-house.
Bajaj's Safire and Spirit have been able to bag the scooter of the year award for 2003 and 2004
respectively. In fact, its Spirit was adjudged the "Indigenous product design of the year" for the
year 2000. The recently launched Pulsar from the Bajaj stable is yet another home-grown
product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been laying
increased emphasis on its R&D so as to be able to launch new products to tap the markets at all
possible price points. Other companies too are adapting the strategy of designing and developing
products indigenously. TVS's Victor is yet another development in this direction and this
indigenously built model has been a success in the markets.

Overview of Auto Mobile Industry in India

A two-wheeler is used as a personal/family vehicle or a goods carrier in the developing
countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance
shopping (mopeds) in developed countries.
The world two-wheeler market is dominated by Japan. Japanese manufacturers account for
around 65% of the total two-wheeler production in the world. However, production within Japan
has been declining due to lower domestic demand and shift in manufacturing base outside the
country. Japan is also the world's largest exporter of two-wheelers in the world controlling
around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player
positions, Honda Motors Corporation, Yamaha Motors and Suzuki Motors Corporation share the
top three slots in the world two-wheeler market. The table below shows the production and sales
figures of motorcycles and scooters in Japan during the past decade More than 50% of the
production in Japan is exported out of the country. This scenario contrasts directly with the
Indian scenario. In India, only about 2% of the production in FY99 was exported
The Asian continent is the largest user of two-wheelers in the world. This is due to poor road
infrastructure and low per capita income, restrictive policy on car industry.
The technology for two-wheelers is not as well developed as for car industry. This is due to
oligopoly between top five players in the segment, compared to thirty manufacturers in the car
industry.

BAJAJ AUTOMOBILES
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 groups flagship company, Bajaj Auto, is ranked as the worlds fourth
largest two- and three- wheeler manufacturer and the Bajaj brand is well-known
in over a dozen countries in Europe, Latin America, the US and Asia.
Founded in 1926, at the height of India's movement for independence from the
British, the group has an illustrious history. The integrity, dedication,
resourcefulness and determination to succeed which are characteristic of the
group today, are often traced back to its birth during those days of relentless
devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close
confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as
his son. This close relationship and his deep involvement in the independence
movement did not leave Jamnalal Bajaj with much time to spend on his newly
launched business venture.
His son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. He
too was close to Gandhiji and it was only after Independence in 1947, that he
was able to give his full attention to the business. Kamalnayan Bajaj not only
consolidated the group, but also diversified into various manufacturing
activities.
The present Chairman and Managing Director of the group, Rahul Bajaj, took
charge of the business in 1965. Under his leadership, the turnover of the Bajaj
Auto the flagship company has gone up from Rs.72 million to Rs.46.16 billion
(USD 936 million), its product portfolio has expanded from one to and the brand
has found a global market. He is one of Indias most distinguished business
leaders and internationally respected for his business acumen and
entrepreneurial spirit.

BAJAJ Brand is the visual expression of our thoughts and actions.Itconveys to

everyone our intention to constantly inspire confidence.Our customers are the
primary audience for our brand.Indeed, our Brand Identityis shaped as much by
their belief in Bajaj as it is by our own vision.Everything we do is always
reinforce the distinctiveness and the power of our brand. We do this by living
our
brand
essence
and
by
continuouslyseeking to enhance our customers experience.Our brand essenceenc
apsulates our mission at Bajaj.It is the singular representation of our terms of
endearment
with
our
customers.It
provides
the
basis
on
which
wegrow profitably in the market.Blending together and the implicitexpectations
of our customers.By challenging the given. By exploring theunknown and
thereby stretching ourselves towards future.

COMPANY PROFILE
Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of Japan to
produce arange of the latest, state-of-art two-wheelers in India. Since the tie-up
in 1986, Bajaj Autohas launched KB100, KB RTZ, KB125, 4S, 4S Champion,
Boxer, Caliber, Caliber115,Wind125 and India's first real cruiser bike,
the Kawasaki
Bajaj
Eliminator.
A
Fortune
500company with a turnover of USD 10 billion (Rs. 45,840crore), Kawasaki Hea
vyIndustries has crafted new technologies for over a hundred years. These
technologieshave redefined space systems, aircrafts, jet engines, ships,
locomotive, energy plants,construction machinery, automation systems, apart
from
a
range
of
high
quality,
highrel iability twowheelers. Kawasaki has given the world its legendary series of 600-1200cc
Ninja and1600 Vulcan bikes. Straight from Kawasaki design boards, theKawasak
i Bajaj Eliminator redefines the pleasure of "biking" in looks as well as
possible.

OUR BRANDS AND VALUES

Brand values: Learning, Innovation, Perfection, Speed and Transparency.Bajaj c
onstantly inspires confidence through excitement engineering.
Learning:
Learning is how we ensure proactivity.It is a value that embraces knowledge as
the platform for building well informed,reasoned, and decisive actions .

INNOVATION
Innovation is how we create the future.It is a value that provokes us to reach
beyond the obvious in pursuit of that which exceedsthe ordinary.
PERFECTION
Perfection is how we set new standards.It is a value that exhibits our
determination to excel by endeavouring to establish new benchmarks all the
time.
SPEED
Speed is how we convey clear conviction.It is a value that keeps us sharply
responsive, mirroring our commitment towards our goals and processes.
TRANSPARENCY
Transparency is how we characterise ourselves.It is a value that makes us
worthy of credibility through integrity, of trust throughsensitivity and of loyalty
through interdependence.

POLITICAL ANALYSIS
Traditional GOVERNMENT OF INDIA has considered the automobile industry
as a luxury segment. But realizing the growing importance of two-wheelers with
the increasing necessity of personal transportation for the middle class in
eighties, priority was given to the sector by favorable foreign policy. This
brought about technology revolution to the two-wheelers as Japanese majors
entered in technical and financial participation with Indian majors.
GOI has a moderate intervention in the operations of two and three-wheeler
industry. Excise duty structure, emission control, safety of rider, etc are all
policy decisions. The excise duty on two-wheelers, which previously ranged
between 10 to 30%, according to the engine capacity was rationalized in 199192 budget to only two-categories viz 15% upto 75cc and 25% above 75cc. This
mainly affected manufacturers of 100cc category in the early nineties. Since

then the excise duty structure for two-wheelers has been left unchanged till
1999. In the 1999-2000 budget, as a result of rationalization of duty structure
the excise duty up to 75cc vehicles was increased to 16% while for those above
75cc decreased to 24%. As a result, scooter prices were reduced by Rs200-400
per vehicle.
The components used for manufacturing two-wheelers are charged an excise
duty of 15%. The industry has been asking GOI to reduce this excise duty to
10%. Two and three-wheelers sector was the first to be de-controlled from the
clutches of government regulations. This has resulted in the entry of world
majors and subsequent in technology and equity participation with Indian
players. This has lead to technology revolution for the two-wheelers in 1980's.
The regulation of safety of the rider is controlled by state government
notifications, these vary in different states. For example helmets are compulsory
for two-wheeler riders in New Delhi and some other states. The same is optional
in Maharashtra and Karnataka. The price of the two-wheelers varies across the
country due to variation in registration charges, state taxes and octrai levied by
states.
The GOI controls availability and price of petrol, the fuel for two-wheelers. But
with the dismantling of Administered Price Mechanism (APM), The availability
of unleaded petrol across the country will be a crucial factor, as catalytic
converters work satisfactorily only under unleaded petrol.
SOCIAL ANALYSIS
The main social factor that associated with automobile industry is the
environmental concerns and HEALTH HAZARDS, (including the welfare of
workes etc, )in form of various diseases due to auto pollution. . Some of the
issues of pollution related to automobile are discussed below.
ECONOMICAL ANALYSIS

Automobile industry is the indicator of the technological health of the

country. It also reflects economical status of a country.
India planners need to consider that the auto industry one segment that is
capable of very rapid growth unlike traditional areas like agriculture, minerals,
chemicals, energy, textiles, gems etc. While all sectors need to be encouraged,
the auto sector is not only capable of very rapid growth but also of good exports
and huge employment.
In the past, auto industry suffered from the stigma of being considered elitist
and was subjected to crippling restrictions and taxation that still hold it back.
There is 40% MODVAT on the components and 35% customer s duty on
imported kits. After production there 245 to 32% excise duty plus 12% local
sales tax some other local taxe. So every time you buy a car, bike or truck, you
give one to government in taxes. The impact on employment is also little
understand.
Every direct or indirect salaries job also generates huge territory employment to
the providers of food, clothing, shelter, health, education entertainment,
recreation, construction etc. accounts of 10% of Indias auto industry, the
cumulative impact is huge.
Indian two-wheeler manufacturers have everything going for them in this battle.
They have a large, mature market, which offers them tremendous volumes. All of
them have built up huge capacities which offer scale economies. They have
technology support from some of the leading names in the world such as Honda,
Yamaha, Suzuki and Kawasaki.
If India cut the total taxes on auto by half, there would be a huge immediate
boost in sales and production. If this sacrifice by the governments can generate
may times greater value in jobs and economic activity, this time of crisis is the
ideal time to use autos as a vehicle to kick start the entire economy.

SWOT ANALYSIS OF BAJAJ AUTOMOBILES

STRENGTHS

Bajaj Automobiles

draws it's strength from 29 years of experience in

handling the ever changing automobile scenario

strong customer relationships

ability to provide the cutting edge technology at best-value-for-money

an excellent service & support infrastructure.

WEAKNESSES

The company needs to evolve a comprehensive plan & strategy to make

inroads into a part of middle class & upper middle class.

Lack of R & D centers also makes it difficult to launch new products over
here.

OPPORTUNITIES

The present rate of growth of the Automobile Industry & a large potential
available in these areas provides excellent opportunity for the company to
widen its market.

With the fast growing economy the pricing strategy needs to be tackled
with care as it can decide upon long term decisions of the company.

Globalization is yet another opportunity, if followed effectively &

promptly.

THREATS

It is natural that threats from the existing as well as new entrants will
affect the present turnover & Market share.

The nearest competitors having the identical product range are the greatest
threat to the company.

PRODUCT PROFILE
Two-wheelers (Domestic)
The domestic two-wheeler market is dominated by motorcycles. Itsgrowth in
2006-07 needs to be viewed in two clearly distinct phases. Forthefirst three
quarters of the year, the two-wheelers witnessed very healthy growth, and it was
a part of the continuing growth story of theprevious few years. In the last three
months of the year, however, overallmarket growth slackened considerably
largely due to steadily risinginterest rates and constraints on credit growth due
to actions taken by the Reserve Bank of India, banks and financial institutions
tocontrol non-food credit. However, this credit squeeze is, at worst, a short term
phenomenon. The fact is that over the last four years, India has achieved a
compoundannual GDP growth rate well in excess of 8 per cent - something that
is expected to continue over the future. Over the last decade, household incomes
have increased significantly in urban as well rural India and, with it, consumer
spends - especially on non-food items and durables.Two-wheelerpenetration still
remains very low by any standard. Therefore, the longerterm story for twowheeler is an extremely good one, where the country is bound to see healthy
double-digit market expansion in the years tocome. In 2006- 07, the industrys
overall sales of two wheelers grew by 12 per cent from 7.57 million to 8.47
million units. Motorcycles sales grew by 14 per cent from 6.2 million to 7.1
million. The share of motorcycles inthe two-wheelers segment for the industry
as a whole increased from 82per cent in 2005-06 to 84 per cent in 2006-07.
Motorcycles
Bajaj Autos sale of motorcycles by volume grew by 24.4 per cent in 2006-07
which was significantly greater than that of the industry.Consequently, the
Company has continued to increase its market sharein motorcycles, which stands
at 33.5 per cent in 2006-07, compared to30.8 per cent in 2005-06. As in the

previous year, this Management Discussion and Analysis analyses the

performance of Bajaj within different broad segments of the motorcycle
industry.
The High Performance Segment:
This includes motorcycles in theengine class of 150 cc and above. Bajaj Auto
competes here with thePulsar range and Avenger DTS-i 2.
The 125 cc Segment:
Bajaj Auto competes in this category withDiscover DTS-i 125 and therecently
launched Discover DTS-i 135.3.
The 100 cc Segment:
Here, Bajaj Auto competes with the Discover110, Platina and the CT-100.
DISTRIBUTION NETWORK
Bajaj Auto is restructuring its marketing and distribution network toaddress the
different requirements of the urban and rural markets.The company has recently
launched its high-end bike dealership Probiking and is now in the process of
categorising its existing 479dealership network into urban and rural dealerships.
Rajiv Bajaj, MD, Bajaj Auto said, Besides Probiking, which is our channel for
high-end bikes, we will split the rest of the two-wheelerdealer network into rural
and urban.This is being done to cater to the different needs of the rural and
urbancustomer in terms of product, infrastructure, working capital, financingand
servicing. As competition hots up in the Indian motorcycle industry. Bajaj Auto
Ltdand TVS Motor Company are chalking out aggressive marketing plans torace
ahead in this sector. In a bid to regain its leadership position, Bajaj Auto is
planning to expand its distribution network to reach out to a wider target
audience. Likewise, TVS Motor Company is all set to extendthe number of its
dealership and service centres in the near future.Clearly, Bajaj Auto and TVS
Motor are shifting gears.
On Bajaj Autos distribution strategy, says Bajaj Auto vice president(business &
product development) RL Ravichandran: We plan to
expand our dealership network and service centres to improve ourpenetration
into smaller towns across the country.In fact, we plan to increase the number of
dealerships and service centres by 20 to 25 per cent. With this move, we will be
able to cover towns with a population of two to three lakh. Incidentally, the

company is all set to unveil its entry-level motorcycle called BYK this month.
Priced at Rs 30,000, BYK is positioned as a stylish bike targeted at the entry
level audience. Ogilvy & Mather India will be designing the communication
strategy for the new bike from theBajaj stable. As part of its offline promotion
strategy, the company recently hosted the Bajaj Boxer Indian Telly Awards 2002
on Star Plus topromote its Bajaj Boxer range.
POSITIONING STRATEGIES
Ever since losing its leadership position, BAL was trying out new strategies
including use of new technology and new marketingcommunication campaigns.
For instance, in the early 2000s it startedfocusing more on the motorcycle
market with new product launches,complement ed by new communication
campaigns to inject vibrancy intothe Bajaj brand.The ad spots launched in late
2001 showed 'slice of life' situations of "new age" India. Analysts felt that by
2004, BAL's image had undergoneconsiderable change in the mind of the target
audience. BAL reinforcedthis through another campaign called 'Inspiring
Confidence' that year.In addition to bringing change in its products and creating
brands thatinspired confidence, BAL wanted its products to be 'distinctly ahead'
inthe wake of growing competition in the intensely competitive
automobilemarket.BAL's new corporate strategy announced in mid 2007,
'Disinctly Ahead', was aimed at embedding these changes in the collective
consciousness of the company. It was aimed at offering consumers products that
wereunique and at the forefront compared to its competitors.The 'Distinctly
Ahead' strategy focused on three core values - innovation,speed, and perfection.
Commenting on its new strategy, Rajiv Bajaj,Managing Director, BAL, said, "We
believe it is not good enough to be better, it is important to be distinct.That is a
filter that we apply to everything we do. be it product development,
manufacturing processes or communication development. Our flagship brand
Pulsar is the strongest evidence of this philosophy. It is only a differentiated
offering that customers see value in and aspire for."
The company launched a 'Distinctly Ahead' communication campaign,created by
ad agency Lowe, to signify its new aggressive and fast pacedimage.The ad
showed a 220 Pulsar DTS-Fi morphing into several 220 Pulsarsas they raced
with each other. The ad featured the pay-off line, "Alag Andaaz, Alag hai Khoj,
Rakhe Aage, Hamari Soch"and a background theme music that was a much
peppier version of the original 'HamaraBajaj' theme music. Through this, the
company sought to communicatethat BAL lays down its own standards and
principles and believes incompeting with itself. Bajaj Auto's new brand strategy
in motorcycles paid off well with thecompany on course to recording its best

year ever in terms of profitability and market share.Its market share, which was
barely 17 per cent a year ago, has increased since to 35 per cent today. We
have more than doubled our market share in a year and would be at our highest
level by the end of this quarter Mr Rajiv Bajaj, Managing Director, told
Business Line. The confidence stems from the fact that there are still three
months to gofor the recently launched Pulsar 135 to consolidate itself in the
marketand start clocking volumes. Bajaj Auto has targeted a monthly output
of 100,000 Pulsars by end-March 2010 and believes the new 135cc will play a
key role in achieving this goal. At present, the Pulsar 150, 180 and 220 versions
together account for around 60,000 units each month.
CORE COMPETENCIES
Bajaj Auto is one of the oldest and the second largest two wheelermanufacutrer
in India. In addition to coping with fierce competitionfrom other players in the
two wheeler segment, it also has to protect itsmarket share from the impending
onslaught of low price small cars suchas Tata Nano. Holding on to its postion in
such a challenging marketenvironment requires innovative strategies and deep
understanding of consumers needs.Bajaj Auto, sitting on surplus funds of over
Rs 7,000 crore, wasinundated with offers to diversify from telecommunications
and powergeneration to software but stuck to core business of automobiles.
MrBajaj said that any company, which wants to survive, must have quality and
service orientation. The automotive sector was in its death throes with some of
the major American automotive manufacturers on the verge of bankruptcy, he
said.There are several reasons why Bajaj should concentrate on its coresegment,
i.e. greater than 125cc segment. With the introduction of DTS-iand DTS-Fi
technology, Bajaj Auto Limited has led the way in pioneeringtechnology along
with style.The Profitability Pyramid in Exhibit 4 shows that the margin is very
low in the sub-125cc segment but volumes are high. BAL wants to shift
usersfrom 100, 115cc segment to 125cc and higher. Thus Bajaj not only wants to
play on the margins but also wants to increase the market share of 125cc bikes.
With its recent launch of XCD 125cc, it has brought incompetition for its own
100cc model, Platina by delivering a bike that is better in all respects (including
fuel efficiency).

BAJAJ PRODUCTS
1. Bajaj Discover

PERFORMANCE
150CC DTS-I ENGINE THAT PACKS A PUNCH
A beast fuelled with power unimagined, the Bajaj Discover 150 is a Stallion that
provides unparalleled performance. The breakthrough 150cc DTS-I engine
ensures efficient combustion, and in conjunction with a 5-speed gear box,
provides exceptionally smooth power, yet delivering class-leading fuel
efficiency.
COMFORT
COMFORT IN EVERY RIDE
Long drives become a lot more fun with the Bajaj Discover 150. While the gascharged Nitrox Suspension delivers an optimum level of comfort, the bikes
electric start provides you with a hassle free starting for quick stop-start traffic
conditions.
SAFETY
REDEFINING STEADINESS
Take control of the road with a 100/90 x 17" extra wide rear tyre that provides
excellent grip, even in wet and slippery conditions. With a 240mm front disc

brake that provides safe and superior braking, the Bajaj Discover 150 is totally
yours to command.

STYLING
A MAN'S BIKE
The Bajaj Discover 150 has got the looks that can make heads turn. The alloy
wheels add to its new generation, chic look and stand out from any average
commuter motorcycle. The attractive and powerful graphics on the front are a
true representation of the power the bike holds within.
2.Bajaj Pulsar

PERFORMANCE
This 4 stroke, 180 cc, Digital Twin Spark ignition (DTS-i) engine has been
designed to generate that extra surge of power. At 17Ps, the Pulsar 180 gives the
rider a feeling of what its like to be aheadalways! The revolutionary
electronics on the Pulsar 180 like TRICS III and intelligent CDI improve
ignition timing thus ensuring smoother power delivery and better throttle
response. All this while not compromising on the efficiency and mileage.

COMFORT
The Pulsar 180 sports telescopic front forks, nitrox rear shock absorbers with 5
step adjustable ride settings, thus providing the bike with greater riding comfort
and handling stability on all terrains. With split seats, the riding stance on the
Pulsar 180 is comfortable for both rider and pillion.

SAFETY
To ensure safety, the Pulsar 180 comes with a large, ventilated 240 mm front
disc brake, a broader 120/80x17" rear tyre, front and rear tubeless tyres that
ensure you will never be stranded no matter how empty the highway or crowded
the city.

STYLING
Behold the beast with the looks to die for. Its stylish and powerful wolf eyed
headlamp with twin pilot lamps, adds a unique character to the Pulsar 180 and
lets it mark its own territory on the road. The naked street fighter look is further
enhanced by the aerodynamic fairing on the large, muscular 15 litre fuel tank.
This mean machine comes with clip-on handlebar, complete with pass switch,
electric start and engine kill switch.

3. Bajaj Avenger

PERFORMANCE
The Avenger has a powerful 220 CC DTSi engine capable of cranking high
torque to ensure a good, smooth highway ride. The DTS-i technology employs
twin spark plug instead of a single spark plug, which give the Avenger that
additional power and torque while also keeping it efficient for the long cruise.
COMFORT
The Avenger has the typical low-slung cruiser seating making it eas y to handle
and sit on. The dual density foam seats, back rest for pillion and low saddle
height make the Avenger truly enjoyable and comfortable for a long ride on the
highway.
SAFETY
The Avenger has a broad rear tyre for better grip, disc brake on the front for
improved braking and a stable build that will not waver when out on the open
roads.
STYLING
The personality of the Avenger suits the people who ride it It classic cruiser
looks, Low Slung styling, classic fuel tank with fuel gauge build it give the

Avenger a distinct identity ad road presence. Swing your leg over the saddle and
Feel Like God.

4. Bajaj Plantina 100

PERFORMANCE
COMPLETE VALUE FOR MONEY
A class apart, the Bajaj Platina boasts of a legendary 4 stroke 100cc engine that
has established a benchmark in mileage. Its ride control switch helps the rider
maintain an economical speed to gain maximum mileage. When you ride the
Platina, you know you have made a wise choice.
COMFORT
CONVENIENCE AND COMFORT
The Bajaj Platina is all about comfort with an extra long seat that makes it a
perfect family bike. In addition, its SNS suspension ensures better ability to
soak up bumps and potholes. When you ride the Platina, you can ride on and on.
SAFETY
ENSURING SAFETY
Safety comes first on the Bajaj Platina. Its large 1275mm wheelbase and drum
brakes ensure the stability of the bike and safety of the rider.

STYLING
STYLISH LOOKS
Dazzling chrome graphics, silver alloy wheels, sleek rear panels with fluid grab
rail design, graphite tint engine and transmission with black silencer and chrome
heat shield add to the beauty of the motorcycle. Not to forget, its stylish alloy
wheels make you stand out from the crowd.

5. Kawasaki Ninja 650

Signature Mono Suspension

Trademark single-shock rear suspension joins the frame and swingarm, creating
a line that flows smoothly from steering head to rear axle.
Under-engine muffler
Muffler located under the engine lowers the Ninja 650's centre of gravity and
contributes to the bike's highly focused appearance. Its steeper angle
complements the bike's aggressive, lightweight image. Quick-revving 649 cm3
liquid-cooled,4-stroke Parallel Twin Engine
The 2012 engine offers more low-mid range torque for more fun and greater
usability in everyday riding situations, while maintaining the smooth, highrevving character of its predecessor.

Rider-friendly Ergonomics
The riding position was specially designed to inspire rider confidence. An ideal
relationship between the handlebars, seat and footpegs results in a comfortable
and natural position suitable for a wide range of riders.
Damped Handlebars
Rubber damped handlebars ensure that uneven road conditions do not result in
tired arms. Stay on the bike as long as you want.Slightly wider handlebar (10
mm each side) offers larger riders a little more room.
DRL with Hazard Lights
Day running lights ensure visibility. Hazard lights enable added visibility when
required. The sculpted shape of the multi-reflector headlamps bulb hoods is an
example of the attention given to detail on this model
Triple Petal Disc Brake
Triple petal disc brakes look great and deliver plenty of stopping power. New
front brake pads for non-ABS models offer increased braking force.
Easier-to-read instrument panel design
New instrumentation features an analogue-style tachometer and multi-purpose
LCD. Convenient new features keep riders fully informed of operating
conditions.

HONDA
Strengths
1.

Diversified product portfolio. Honda unlike many other automotive

companies does not focus only on selling vehicles. It is the largest producer of the
engines and motorcycles as well. Therefore, the company is not as susceptible as
its competitors are to market cycles or technology disruptions.

2.

Huge investments in R&D. Hondas investments in R&D reach as much as

5% of revenue. The company relies on these investments to achieve competitive
advantage through various technologies, such as improved vehicle painting
process, new hydrogen and hybrid engines or new welding technologies. In 2012,
the company owned 42,000 patents and had pending applications for 29,000 more
patents.

3.

Strong brand image. Honda has a reputation for producing the best quality
engines around the world. The companys brand was the 21st most valuable brand
in the world valued at $17 billion and was only behind Toyota, Mercedes-Benz
and BMW, according to Interbrand.

4.

Motorcycle market share in Asia. In 2012, Honda sold 80.5% of its

motorcycles in Asia, the market that has greatest growth potential. Having the
largest motorcycle market share, Honda is well positioned to compete with other
companies for the sales and profits.

Weaknesses

1.

Product recalls. Over 2011 and 2012, Honda recalled more than 1,000,000
vehicles to fix various faulty parts and manufacturing defects. Car recalls severely
damages firms brand reputation and future sales.

2.

Weak position in Europe automotive market. Honda holds a very weak

position in the Europes automotive market and has maintained only 1.1% market
share in 2012. Although, Europes market share is declining at the moment and
many companies experience losses, the market is huge and firms can benefit from
the economies of scale.

3.

Decreasing sales. In 2012, Hondas revenue hit the lowest point in 4 years to
7.948 trillion. Honda sales were down by 11.2% in North America, which
represents more than 40% of total Honda revenues. Revenue from Asia and

Europe also declined by 21.3%, 15.5% respectively, signaling poor firms

performance globally.
Opportunities

1.

Increasing fuel prices. Hondas strong emphasis on engineering fuel-efficient

vehicles (Honda Insight and Honda Civic) with flexible fuel, hybrid and hydrogen
engines will pay off due to increasing fuel prices.

2.

Positive outlook for global motorcycle industry. Motorcycle industry grew

by 4.2% from 2011 to 2012 and is expected to grow by at least 6% to 2016. Honda
is the worlds leading producer and seller of the motorcycles having more than
29% of the market share. Growing demand for the motorcycles is a great
opportunity for the company to expand its global market share and grow sales.

3.

Growing global demand for environment friendly vehicles. The declining

levels of fossil fuel sources and the rising CO2 emissions became a major concern
for many people and many governments. Therefore, ecologically friendly cars,
powered by hybrid, hydrogen or flexible fuel engines became very popular. The
market for such cars was $33 billion in 2010. Hondas focus on hybrid and
hydrogen fueled engines is a great opportunity to capture the market share for this
new demand.

4.

Growth through acquisitions. Honda could greatly benefit from strategic

partnerships or acquisitions of smaller competitors. The company would add new
brands to its portfolio, achieve greater economies of scale and would benefit from
synergies between different firms.

Threats

1.

Intense competition. Honda faces more intense competition than ever. New
small entrants are disrupting the market with their capabilities in producing
electric vehicles or alternative fuel engines. Big companies are restructuring
themselves to become more efficient. As a result, firms like Honda are suffering
from competition from both big and small players.

2.

Decreasing fuel prices. Some analysts forecast that future fuel prices will
drop due to extraction of shale gas. This would negatively influence Honda
because the company is focusing on hydrogen fuel, hybrid and flexible fuel engine

cars, which are not so attractive to consumers when fuel prices are low.
3.

Rising raw material prices. Metals are the main raw materials used in
vehicle and motorcycle manufacturing and the rising price of the raw metals raises
overall production costs for Honda.

4.

Natural disasters. Honda has manufacturing facilities in Japan, Thailand,

China and Malaysia. These countries, including others, are often subject to natural
disasters that disrupt manufacturing in the facilities and decrease Hondas
production volumes.

5.

Strong yen. Honda earns most of its profits outside Japan and appreciating
yen poses a great threat to Hondas profits.

Cutting-edge

technology

and

the

spirit

of

Honda

Our fundamental design philosophy seeks to maximise space and comfort for people,
while minimising the space required for mechanical components. With this aim in
mind, Honda's R&D activities include product-specific development and fundamental
research.
Let's talk about few of the advanced technologies that we have:
Combi

Break

System

Generally, it is not easy to control a 2-wheeler while braking during emergencies and
bad road conditions. This system not only allows easy & simultaneous operation of
the front & rear brake but also provides optimal braking performance. Once the left
side brake lever is pressed, the system distributes the appropriate braking power
between the front and rear wheels, which assures complete safety for the rider.

HondaMaticTransmission
The compact, efficient & oil pressure controlled Hondamatic Transmission is the
world's first fully automatic transmission system, which delivers a dynamic

combination of torque & excellent accelerator response for a constant and superior
driving experience. The transmission is being used in Honda's all terrain vehicles.
Honda is working hard to introduce this Hondamatic in two-wheelers.

Fuel

Injection

System

Honda's fuel injection technology is designed to realise ideal combustion, which

results in delivering maximum power output, greatly improved fuel efficiency and
yet be environment-friendly.

Idle-Stop-System

Honda has created an advanced Idle Stop System (see image below) that reduces fuel consumption while to
blocking out toxic
exhaust gas and unwanted noise. It enables the engine to stop automatically for 3 seconds after the vehicle
moving. And when
the throttle is opened, the vehicle engine restarts and takes off smoothly.

Products of Honda
1. CB Unicorn

CB Unicorn is powered with Honda 4-stroke, 150cc engine and incorporates many
cutting-edge technologies developed by Hondas global R&D team. It sets new
benchmark in the uppper majority motorcycle segment in India with its swift
acceleration, superior mileage, international styling, riding comfort and convenience.
CB Unicorn is engineered and styled for the taste of the younger generation. With the 4stroke, 150cc engine delivering a whooping 13.3 bhp, CB Unicorn is the fastest
motorcycle in India racing from 0 to 60 kms* per hour in a mere 5 seconds. It has a
distinctive sporty and macho design with a racy front face, masculine fuel tank with knee
grip and a sleek rear cowl.
CB Unicorn offers perfect balance of pickup and mileage, delivering 60 kmpl through its
famed 4-stroke Honda engine, cutting edge technologies like Multi-Mapping CDI,
Tumble Flow Combustion Chamber, Roller Rocker arm, and a Classy Aerodynamic

Body.
This engineering masterpiece with international design appeal, guarantees to quench your
thirst for motorcycle frenzy with all its stunning features.

2. CB Stunner

Start down Style Boulevard. Get to the New Graphics (down Headturn Avenue).
Take a turn for the Newly Designed Under Cowl (watch out for Immediate Attention it
has a looming presence).
Keep a lookout for the Sharp Rear (its the most happening place in the city nowadays, all
the hot chicks are there).
Go down Performance Avenue. For a mind-blowing drive, take the Hondas 125 cc
Engine with 11 bhp 5 Speed Transmission (renowned the world over).
Keep going straight down with the Wider Tubeless Tyres (A landmark is the The Black
Alloy Wheels impossible to miss)
Stop at the Disc Brakes.

Take a roundabout from The Sporty Half Chain Case (leaves your head spinning really)
and take the Handle Bar Weights (its a stable ride despite the challenging roads).
Get to the newly constructed Tachometer (its a superb vantage point, you can see close
to everything from here).
3. CB Shine

Powered by Hondas revolutionary optimax & Ergotec technologies, the CB Shine is a

companion that understands & fulfills the riders need to do more in life by delivering superior
performance that is nothing short of a dream come true.
CB Shine is powered by a newly developed 125cc Optimax engine, which maintains Optimum
input for maximum output and incorporates cutting edge technologies to deliver best balance of
mileage and pickup. Due to its cutting edge Honda technologies, the 125 cc Optimax engine
delivers class leading 10.3 BHP which enables Shine to deliver the best balance of pickup and
mileage.
CB Shines Ergo Tec Design with lightweight advanced diamond frame and double suspension
offers superior absorption of shocks & vibrations thus providing excellent ride comfort &
stability. Riding position based on human engineering ensures, less fatigue and firm & wide
seating space with comfortable seating posture for pillion rider.
CB Shine also comes equipped with host of innovative features like puncture resistant Tuff-up
tube and Primary Kick/Self start for easier city riding etc.

4. CB Twister

Honda CB Twister ranges from INR 45K-51K (ex-showroom, Delhi (approx., may
vary)). Definitely, its a complete value for bike. Honda is asking a genuine price for
their sporty bike. CB Twister has catchy looks and performs best in its class. Moreover
you will be pleased with its high fuel efficiency and superb ride quality. If you compare it
with its rivals then its more stylish and feature rich bike which also gives you exclusivity
which is quite rare in its segment.

5. CB Trigger

Honda Motors along with Scooter India Ltd has launched the new Honda CB Trigger in
the Indian bikes market. It is a unique kind of a bike that will be seen on the Indian roads,
but it has some resemblance to the Honda Dazzler. The styling of the Honda CB Trigger
has some cues from the CB1000R, which will surely thrill Indian roads
and motorcycle market. Honda CB Trigger will be a 150CC motorbike, it will be seen
going head to head with the 150CC Honda Unicorn that has made a good mark in the
150CC segment.

CHAPTER -2

RESEARCH METHODOLGY

Information is the life blood of managerial decision-making the purpose of the methodology
section is to describe the procedure by which the relevant information is gathered. In research
methodology, we study the various steps that are generally adopted by researcher in studying his
research problem along with the logic behind them.
HERE, RESEARCH METHODOLOGY USED IS EXLORATORY RESERCH
1. Data Collection/Source of Information:
a) Primary: By questionnaire that contains open ended, close ended and dichotous
questions.
b) Secondary: Magazines and Web sites relating to different Bike Companys.
2. Sample Design:
a) Sampling Method: Non-Probability and Judgment Sampling
b) Survey Population: College students and people of West Delhi
c) Sample Size: 100 persons were included in the research including both who are
using bikes and who are not using bikes.
3. Statistical Tools:
The following are the statistical tools used in the study:
a) Percentage
b) Ranking
c) Scaling

CHAPTER-3

DATA ANALYSIS AND INTERPRETATION

1.Which of the following companys bike do you have?
(a) Bajaj

(b) Honda

(c) Other

Which of the following companys bike do you have?

Bajaj
Honda
Others

2. From where did you purchase your bike?

(a) Showroom

(b) Secondhand Dealer

(c) Other

From where did you purchase your bike?

Showroom
Secondhand dealer
Other

3. How do you get to know about the company of the bike?

(a) Friends/Family
Hoarding/Banners

(b) Advertisements

(c)

(d) Other

How do you get to know about the company of the bike?

Friends/Family
Advertisements
Hoarding/Banners
Other

4. How many bikes have you used of the same company till now?
(a) One
(b) More than one

How many bikes have you used of the same company till now?

One
More than one

5. What promotional scheme attracted you the most towards the company ?
(a) Advertisement
(b) Promotional Campaign
(c) Hoarding/Banners
(d) Sms
(e) Other

What promotional scheme attracted you the most towards the company ?

Advertisement
Promotional Campaign
Hoarding/Banners
Sms
Other

6.

Why did you choose this company over the other?

(a) Price
(b) Services
(d) Other

(c) Network

Why did you choose this company over the other?

Price
Services
Network
Other

7. Does the company fulfil your expectation as was committed during

promotion?
(a) Yes
(b) No
(c) Cant Say

Does the company fulfil your expectation as was committed during promotion?

Yes
No
Can't Say

8. Were you convinced to buy the bike by the promotion totally?

(a) Yes
(b) No
(c) Cant Say

Were you convinced to buy the bike by the promotion totally?

Yes
No
Can't Say

9.

How would you rate the competitiveness of this company with other company in terms of
promotion?
(a) Excellent
(d) Poor

(b) Good
(e) Very poor

(c) Average

How would you rate the competitiveness of this comany with other company in terms of promotion?

Excellent
Good
Average
Poor
Very poor

10.

How would you rate the competitiveness of this company with other company in term of
service?

(a) Excellent
(d) Poor

(b) Good
(e) Very poor

(c) Average

How would you rate the competitiveness of this comany with other company in term of service?

Excellent
Good
Average
Poor
Very Poor

11. Are you satisfied with the after sale service of the company as committed during the
promotion?
(a) Yes

(b) No

(c) Cant Say

Are you satisfied with the after sale service of the company as committed during the promotion?

Yes
No
Can't Say

12. Does the brand fulfil your status needs and give value for money?
(a) Yes
(b) No
(c) Cant Say

Does the brand fulfil your status needs and give value for money?

Yes
No
Can't Say

13.Would you like to purchase this brand again?

(a) Yes

(b) No

(c) Cant Say

Would you like to purchase this brand again?

Yes
No
Can't Say

14. Would you like to recommend this bike company to your friends and family?
(a) Yes
(b) No
(c) Cant Say

Would you like to recommend this bike company to your friends and family?

Yes
No
Can't Say

CHAPETR -4
CONCLUSIONS
RESULTS OF THE STUDY
1) Regarding the preference for the Bike company, people are more inclined
towards the Bajaj bikes and Honda bikes are also a strong competitor. Other
brands of bikes are less preferred.

2)

Regarding the purchase of the bikes people prefer buying from showrooms so that they
can avail the benefits of the best service and more information regarding the bike and less
from second hand dealers and few people buys from other sources.

3)

43% of the customers came to know about the bike company from their family and
friends, 35% of the customers came to know about the bike company from different types
of promotional strategies, 15% came to know from banners/hoardings in the city and 7%
came to know from different sources. Most of the people were convinced from their
family and friends.
4) Generally people have used only one bike from the same company and very few have
used more than one bike of the same company.
5) The most attracted promotional scheme of the people is advertisement from
different sources , some are attracted towards the promotional campaigns

and few number of people preferred banners, sms and other promotional
schemes. The customers are mainly get influenced from the advertisements.
6) The most of people prefer price and mileage of the bike that the company
offers while purchasing and some compare pick up and other facilities over
the bike comapny.

7) The brand fulfilled the expectation as was committed during promotion as

said by the 70% of the customers and 10% have some problems regarding
the commitment and 20% of the customers were confused regarding their
view point.
8) 50% of the people were convinced to buy the bike by the promotion totally
and on the other hand 30% of the people still need more information
regarding the bike before its purchase and 20% of the people were affected
by the promotion but not totally.
9) Most of the people thought that the competitiveness of this company with
other company in terms of promotion was good and thought it was excellent
but few people thought that it was not satisfactory. In conclusion company is
having great promotional strategies but it can improve to earn more
customers and profit.
10)
Most of the people thought that the competitiveness of this company
with other company in term of service was good and only few thought it was
excellent and a lot people thought it was not satisfactory , so company should
concentrate more on the after sale service so that the customers should get
more satisfied.
11)
65% of
the people were satisfied with the after sale service of the company as
committed during the promotion, 20% of the people have not used the after
sale services so they cannot comment and 15% of the people were not
satisfied with the after sale services of the company.
12)

The brand fulfilled the status needs and give value for money to

almost 80% of the customers and 15% did not comment anything and 5%
were not satisfied.

13)

About 45% of the customer would like to purchase the brand they are

using again and 35% are not sure to purchase this companys bike again and
20% of the people would like to try some other company of bikes.
14)

More than 50% of the customers would like to recommend this brand

to their friends and family, few are not interested about talking about this and
some people were not interested at all in sharing their viewpoint regarding
their bike to their friends and family.

LIMITATIONS OF THE STUDY

Although I have tried my best in collecting the relevant information there are always present
some limitations under which researcher has to work. Here following are some limitations under
which I had work as shown below:
1. Sample Design: The sample size analyzed was limited which may not be fully
representative of the universe. A large sample size could not be taken due to time and cost
constraints.
2. Time Constraint: I had a limited time for conducting this analysis report. So some
shortfalls may be present..
3. Biasness on the part of Respondents: Although all the attempts were made to make it
an objective study, biasness on the part of respondents might have resulted in
subjectiveness.
4. Reluctance of Respondents: Some customers are not willing to give any information
due to many reasons like lack of time or they do not want to disclose their opinion or
thinking.

SUGGESTIONS
1. Honda should improve on its promotional strategies so that people can get
more convince to buy their companys bike over the other.
2. Bajaj and Honda should promote their brand and should bring new services
for the customers frequently so that they can enjoy the benefits that the
company provides and can get more attracted towards the purchase of the
bike .
3. Most of the people agreed that the brand fulfils their status needs but
everyone should agree that and for this more attracted services in the bike
should be provided to the customer.
4. The promotional strategies of the brand should be very strong so that the
brand can fulfill all the expectations of the customers.