Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Submitted by
Mr. Ajay B. Savaliya [Batch No. 2014-16, Enrollment No.147500592100]
1
Company Certificate
This is to certify that Mr. Ajay B. Savaliya from S.R. LUTHRA INSTITUTE OF
MANAGEMENT, have carried out the research on the subject titled “A study on
Customer Preference and Satisfaction towards Bajaj Bikes” at Shivam Bajaj
under the supervision of Mr. ShobanMulla, from June 2015toAugust, 2015. I
alsocertify that, the above mentioned student has carried the research
worksatisfactorily.
Place: - Surat
Date: - ____________
________________
Mr. ShobanMulla
(Branch Manager)
2
Student’s Declaration
I, Mr. Ajay B. Savaliya, hereby declare that the report for Summer Internship
Project entitled “A study on Customer preference and Satisfaction towards Bajaj
Bikes” is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged.
Place: Surat
Date: _____________
__________________
(Ajay B. Savaliya)
3
Institute’s Certificate
Certified that this Summer Internship Project Report Titled “A study on Customer
Preference and Satisfaction towards Bajaj Bikes” is the bonafide work of Mr. Ajay
B. Savaliya (Enrollment No. 147500592100), who has carried out the research
under my supervision. I also certify further, that to the best of my knowledge the
work reported herein does not form part of any other project report or dissertation
on the basis of which a degree or award was conferred on an earlier occasion on
this or any other candidate.
Place: Surat
Date: ________________
___________________
(EshaPandya)
Asst. Professor
___________________
(J.M. Kapadia)
Director
4
Preface
5
Acknowledgement
I would like to express my sincere thanks and gratitude to our beloved principal
Dr. Jimmy Kapadia (Director) and Ms. EshaPandya (Assistant Professor) for
giving innovative ideas, constant help, and encouragement too this project work
& give me better support in the industrial training without whom it would be very
difficult for me to completing this report.
I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.My thanks and appreciations also go to my
colleague in developing the project and people who have willingly helped me out
with their abilities.
6
Executive Summary
The objective of my research is which is/are the most attractive attributes for
purchasing Bajaj bikes; and study the level of satisfaction the same. I have taken
200 samples for the survey. Type of design is descriptive research design; data
collection throughout questionnaire; and sampling method for the study is a non-
probability convenience sampling.
For the tools of data analysis I have used SPSS which analyze data to Pearson
Chi-square for finding there is association between two variables; also prepare a
frequency table for the same. I have used Microsoft Excel for prepare a
frequency charts.
Majority of the customer prefer Bajaj bike on the basis of price, mileage,
maintenance cost, and engine capacity attributes. More than 50% of the
respondents are satisfied with the price and engine capacity. More no. of
respondents has dissatisfied with the resale value and after sales services of
Bajaj. As per survey Hero is a 1st rank and Bajaj is a 3rd rank. There is no
association between customer income and mileage attribute of bike; and
customer occupation and brand image. There is association between customer
age and look & style of Bajaj bikes.
7
TABLE OF CONTENTS
o Company’s Certificate
o Student’s’ Declaration
o Institute’s Certificate
o Preface
o Acknowledgement
o Executive Summary
8
b. Research Objective 44
c. Research Design 45
i. Type of Design 45
ii. Types of Data 45
iii. Instruments for Data Collections 45
iv. Sample Population 45
v. Sample Area 45
vi. Sample Size 45
vii. Sampling Method 45
viii. Tools for Analysis 45
ix. Limitations of the Study 45
6. Data Analysis and Interpretation 46
7. Finding and Conclusion 83
a. Findings 83
b. Conclusion 85
8. Bibliography 86
9. Annexure 87
9
LIST OF TABLES
Table Page
Sr. No. Particulars
No. No.
2 Age 6.1 46
3 Occupation 6.2 47
4 Education 6.3 48
10
21 Rank 6.20 67
11
LIST OF FIGURES
Figure Page
Sr. No. Particulars
No. No.
4 Age 6.1 46
5 Occupation 6.2 47
6 Education 6.3 48
12
21 Customer satisfaction towards comfortable ride 6.18 65
23 Rank 6.20 67
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INTRODUCTION
14
Introduction of Customer Preference and Satisfaction
Who is Customer?
A customer may or may not also be a consumer, but the two notions are distinct,
even though the terms are commonly confused. A customer purchases goods; a
consumer uses them. An ultimate customer may be a consumer as well, but just
as equally may have purchased items for someone else to consume. An
intermediate consumer is not a consumer at all.
What is Preference?
Preferences are the main factors that influence consumer demand. Economists
study preferences to perceive the demand for each commodity and the future
implications it may cause.
15
What is Customer Preference?
Customer preference is used primarily to mean to select an option that has the
greatest anticipated value among a number of options by the consumer in order
to satisfy his/her needs or desires. Preferences indicate choices among neutral
or more valued options available. The preference of the consumer is the result of
their behavior they show during searching, purchasing and disposing the
products.
First, limit the information requested. Look at your overall marketing strategy and
use that as your guide to decide what data to request. Ask only for the
information you need and you will use to execute your communications strategy.
Don't collect all the information at once. Allow your customers to share only the
data they are comfortable sharing. As you build trust, they'll usually be willing to
share more.
Finally, don't give up. Send periodic follow-ups to customers who haven't
completed their entire profile, and remind them of the advantages of doing so.
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Once you have the data, make sure you use it. Customers like it when you talk
about what's important to them, so tailor your offers based on their information. It
helps to ask your customers the day of the week and time of day they prefer to
receive your messages.
What is satisfaction?
17
What is Customer Satisfaction?
Quality of product
Value of product relative to price-a function of quality and price.
Time issues, such as product availability, availability of sales assistance,
time waiting at checkout, and delivery time.
Atmosphere of store, such as cleanliness, and enjoyable shopping
environment.
Convenience, such as location, parking, hours of operation.
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INDUSTRY
PROFILE
19
a. Global level
The world’s largest market for two wheelers is china followed by India. These
countries are also hosts to world class plants along with the obviously powerful
and influential Japanese manufacturers and brand names such as Honda,
Suzuki, and Yamaha and so on. It is also seen that the advent of national brands
like Bajaj and TVS, which are also likely to go global, setting up marketing and
manufacturing arrangements in the other populous markets of Asia. The global
market for two wheelers has shown tremendous growth over the past decade.
The geographic spread of this growth has been very uneven. Asia has accounted
for the vast majority of growth. China and India alone account for over half the
world’s two wheeler sales. Other large markets in the region are Japan,
Indonesia, Vietnam and Taiwan. Latin America is another important region and
sales there have more than doubled over the past ten years especially in Brazil.
The major players in the world two-wheeler market could at one time be
categorized simply into two groups: the three global Japanese giants (Honda,
Suzuki and Yamaha) and other players are Hero, Bajaj, TVS, and Royal Enfield.
However, as the industry globalizes further, a further category is emerging,
namely other Asian (mostly Indian and Chinese player) and European players
who are seeking to expand their own identities worldwide.
Two-wheelers are one of the most affordable forms of motorized transport and,
for most of the world's population; they are the most common type of motor
vehicle. About 200 million two-wheelers, including mopeds, motor scooters,
motorized bicycles, and other powered two and three-wheelers, are in use
worldwide, or about 33 motorcycles per 1000 people. In comparison, there are
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around 590 million cars in the world, or about 91 per 1000 people.Most two-
wheelers, 58%, are in the developing countries of Asian - Southern and Eastern
Asia, and the Asia Pacific countries, excluding Japan - while 33% of cars, 195
million, are concentrated in the United States and Japan. There are
approximately 1.5 million active motorcyclists in the UK, representing around 3%
of the UK adult population. Around 3 million people hold a full two-wheeler
licence. Ownership rates indicate there are approximately 22 motorcycles per
1,000 people.
Total demand for two-wheeler in Europe during calendar year 2012 declined
approximately 10% from the previous year to approximately 779 thousand units.
Weak consumer sentiment due to growing economic instability adversely
affected demand. Total industry demand for two-wheelers in Japan in financial
year 2013 was approximately 440 thousand units, mostly unchanged from the
previous financial year 2012. Although the number of licensed riders declined in
line with the continued decline in the population of young people in Japan, unit
sales growth was driven by higher demand for scooters and small motorcycles.
Total demand for two-wheelers in Asia during calendar year 2012 declined
approximately 3% from the previous year to approximately 41,500 thousand
units. Looking at market conditions by country, demand in India increased
approximately 5% from the previous year, to approximately 13,850 thousand
units while demand in China decreased approximately 10% from the previous
year, to approximately 12,630 thousand units.
In Indonesia, saw demand decline approximately 12% from the previous year, to
approximately 7,060 thousand units and Vietnam saw demand decline
approximately 7% from the previous year, to approximately 3,100 thousand units.
Demand in Thailand rose approximately 8% from the previous year, to
approximately 2,160 thousand units. Harley-Davidson is the leader in the global
to-wheeler industry, and saw two-wheeler retail sales increase 20% in the first
quarter of 2012 year-on-year, with US growth reaching closer to 26%. The
company is increasing its full-year shipment guidance, expecting to ship between
21
245,000 to 250,000 two-wheelers in 2012 to dealers and distributors throughout
the world.
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b. National level
India is a 4th largest economy in the world,4th largest commercial vehicle market,
India emerged as Asia’s 4th largest exporter of automobiles, behind Japan, South
Korea and Thailand.India is the second largest manufacturer and producer of
two-wheelers in the world. It stands next only to Japan and China in terms of the
number of two-wheelers produced and domestic sales respectively. This
distinction was achieved due to variety of reasons like restrictive policy followed
by the Government of India towards the passenger car industry, rising demand
for personal transport, inefficiency in the public transportation system.
Indian two-wheeler industry has got spectacular growth in the last few
years.Indian two-wheeler industry had a small beginning in the early 50's. The
Automobile Products of India (API) started manufacturing scooters in the
country.Bikes 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.
Indians prefer the two wheelers because of their small manageable size, low
maintenance, and pricing and easy loan repayments.Indian streets are full of
people of all age groups riding a two wheeler.The Indian two-wheeler industry
made a small beginning in the early 50s when Automobile Products of India (API)
started manufacturing scooters in the country. The two-wheeler industry in India
has been in existence since 1955. It consists of three segments viz., scooters,
motorcycles, and mopeds. Until 1958, API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-
wheelers. In the initial stages, API dominated the scooter segment; Bajaj Auto
later overtook it. Although various government and private enterprises entered
the fray for scooters, the only new player that has lasted till today is LML. Under
the regulated regime, foreign companies were not allowed to operate in India.
Notwithstanding the strong revival witnessed early in FY15, volume growth in the
Indian two-wheeler industry has reported deceleration over the last few months
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dragged by declining volumes of motorcycles segment. The growth story for the
Indian automobile industry in 2014 rode on the two-wheeler segment and not on
passenger cars or commercial vehicles, as high interest rates and a stuttering
manufacturing industry kept a check on demand.
The two-wheeler segment is the only one that has clocked positive growth at
12.9 percent YoY (year-on-year) to reach sales of nearly 13.5 million units by
October. This can be attributed to the low cost of two wheelersin India.
ICRA said that various structural positives associated with the domestic two
wheeler industry include favorable demographic profile; moderate two wheeler
penetration levels (in relation to several other emerging markets), under
developed public transport system, growing urbanization, strong replacement
demand and moderate share of financed purchases remain intact.
ICRA said the motorcycle volumes faltered after a positive first half of 2014-15
and OEMs lined up new models to woo customers. Accounting for over 65 per
cent of two-wheeler industry volumes, performance of motorcycles has a
significant bearing on the overall volumes of the industry.
Consequently, with sluggish volumes in the segment, the overall industry volume
growth was also dragged down during the last four months despite continued
strong performance of scooters. Though the segment grew by 11.6 percent year
over year (YoY) during H1 FY15, growth faltered during FY15 with motorcycle
volumes posting a decline of 5.4 percent YoY and 6 per cent YoY in January
2015.Although fuel prices have started coming down significantly, the enquiry
levels at showrooms have come down and conversions are not taking place at
all. The sales of diesel vehicles are also tapering off because of the narrowing
price gap vis-a-vis petrol. Two-wheeler sector grew 12.9 percent.
The demand environment for the two wheeler industry remained subdued in the
current fiscal. CARE Research believes tough economic scenario owing to high
inflation, depleting growth in all economic activities, coupled with challenges like
firm interest rates and spiralling fuel prices have moderated the growth in near
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term. Income levels in urban areas have been affected by the slowdown in the
industrial activities, while rural income is impacted due to below normal
monsoons in most regions that have significantly affected agriculture output.
CARE Research observed in spite of some sort of momentary spurt owing to
festive demand during third quarter of FY13, the two wheeler sales growth
remained around 4 per cent during the April-February period of FY13.
Table 2.1
25
India’s largest motorcycle manufacturer, Hero MotoCorp has communicated that
its monthly sales for February 2015 stands at 484,769 units as against 504,181
units sold in February 2014. The company has registered a fall of 3.85 percent
for this month.
February 2015 marked the highest domestic market share of 29 percent for
Honda Motorcycle & Scooter India (HMSI). The company sold a total of 361,493
units during the month, marking a growth of 10.05 percent. HMSI’s February
2014 sales stood at 328,468 units.
A continued dip in the motorcycle sales saw Pune-based Bajaj Auto sell 216,077
units (including exports) during February 2015. The company, which marked a
decline in its monthly motorcycle sales of 20.94 percent, had sold 273,323 units
in February 14.
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c. State level
In Gujarat state, sales of two-wheeler between April and September went down
by 15% to 3.40 lakh units from 4 lakh units in the same period of the previous
year 2011-12. In 2012–13, sales of two-wheelers were down, Since September
2012, the sales gradually started coming down and hence de-growth in 2012–13
was marginal. While in 2013 –14, sales of two-wheeler were increased. In the
previous year, Gujarat used to buy around 65000 to 70000 two-wheelers every
month. Now, the averaged has come down around 50000 to 55000 units per
month. There are multiple factors that have brought down sales of two-wheelers
in the Gujarat state. Bajaj Automobiles has sold around 11000 bikes per month
between April and September in 2014. Compared to the previous year 2013, the
figures are down from over 13000 units per month.
At present, automobile industry is selling bikes and scooters within the segment
of 75cc to over 500cc of the total sales; over 60% falls in the segment of 100cc to
125cc.This segment provides good mileage and falls in the value segment. Now
a day the interest rates for buying two-wheelers have increased which is affecting
one’s plan of buying a bike on loan. There are many customers who already own
a bike but want to buy a new bike by selling the existing one. Those customers
have put their plans on hold. They are not getting good resale value and getting
finance for the new bike has become expensive.
Bajaj auto has witness’s good responses from rural markets of Gujarat. In
Gujarat state 2014, total sales, about 45% of two-wheelers were sold on finance.
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d. PESTEL Analysis
1. Political factor
Political factors are the level to what the government interferers in the economy.
Specifically, political factors area such as tax liabilities, labour law, environmental
law, trade restrictions, tariffs, and political stability. Political factors include goods
and services which the government wants to provide or be provided government
plays an important role in the economy as well as in taxes to be charged to the
company. These factors are also play an important role in the employment law,
competition regulations as the company cannot make specific prices as they
have to follow the competition regulations. In the next few years, China is saying
that they are going to be investing billions of dollars I to hybrid technology. Bajaj
is a two-wheeler automobile company who is well known for sport bikes.
2. Economic factor
Economic factors are those which are influenced by economic growth, interest
rate, exchange rate and inflation rate.
Abundant and low cost labour coupled with local availability of raw material like
steel, aluminium, and natural rubber has placed India amongst the low cost
producing centers of two-wheelers. Consequently, CARE research anticipants’
buoyant growth in two-wheelers exports as well, abundance of labour and raw
material gives India an upper hand in the export. Since many auto finance
28
company laid easy instalment rules with less interest rate it makes more segment
people to go for it.
3. Social factor
Lifestyle and preferences of people that impact their choice of types of two-
wheeler bike. In numerous cultures, motorcycles are the primary means of
motorized transport. India is the second largest motorcycle markets in the world
next to china. Socially many motorcycle organization raise money for charities
through organized ride and events. Many people ride motorcycles for various
reasons, those reasons are increasingly practical, with riders opting for a
powered two-wheeler as a cost –efficient alternative to infrequent and expensive
public transport system, or as a means of avoiding or reducing the effects of
urban congestion. Motorcycle gives a great advantage to the specified
designation where other buses cannot enter. Since there is a rule in some of the
main states and cities in India to wear helmet while ride two-wheelers to make
them safe from accidents makes two-wheelers riders to have a safety journey.
4. Technological factor
29
available in many place two-wheeler riders has a privilege to change the broken
parts very easily.
5. Environmental factor
Physical conditions effecting ability to use two-wheeler of different types. This will
also include state infrastructure such as roads for driving vehicles. Physical
infrastructure such as roads and bridges affect the use of two-wheeler industry. If
there is good availability of roads or roads are smooth then it will affect the use of
two-wheelers. Physical conditions like environmental situation affect the use of
two-wheelers. If the environment is pleasant then it will lead to more use of
vehicles.
6. Legal factor
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e. Current Trend
The two wheeler market in India is clearly dominated by top 3 players like Hero
MotoCorp, Honda Motorcycles and Scooters India (HMSI), Bajaj Auto around
86% of the market share. The rest 14% is shared by Yamaha, Suzuki, Royal
Enfield, TVS Motors etc.
Fig. 2.2
Hero MotoCrop retains the top spot with 54% market share. Standing next to it is
Bajaj Auto is 18%, Honda is 14%. The other players who are trailing are Suzuki,
Royal Enfield, Yamaha and TVS Motors are covered in rest of 14% market
share.
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Segment Wise Two Wheeler Market Share
Fig. 2.3
There are three segments: Motorcycles, Scooters, and Mopeds. The motorcycle
segment continues to dominate two wheeler markets with a strong hold of 74% in
overall sales volume. On the other hand, scooters segment emerging as a
significant market due to the preferred choice of young adults mainly by females,
currently it holds around 22% of overall two wheeler sales volume. Mopeds
would continue to remain small market and holds a share of around 4%.
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f. Major Key Players
Piaggio
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g. Major Offering
1. Sports bikes
3. Cruiser bikes
A cruiser is a motorcycle in the style of American machines from the 1930s to the
early 1960s, including those made by Harley Davidson, Excelsior and
Henderson. The riding position usually places the feet forward and the hands up,
with the spine erect or leaning back slightly. Typical cruiser engines emphasize
easy ride ability and shifting, with plenty of low-end torque but not necessarily
large amounts of horsepower, traditionally V-twins but inline engines have
become more common. Cruisers with greater performance than usual, including
more horsepower, stronger brakes and better suspension, are often called power
cruisers.I.e. Bajaj Avenger, Royal Enfield Thunderbird, Harley Davidson Super
Glide etc.
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4. Touring bikes
5. Dual-sport bikes
6. Standards bikes
Standards, also called naked bikes or roadsters are versatile, general purpose
street motorbike. It is recognized primarily by their upright riding position, partway
between the reclining rider postures of the cruisers and the forward leaning sport
bikes. Naked bikes are often un-faired sports bikes or modern bikes. I.e.Honda
CB1000R, KTM Duke 690, Honda CB500, Ducati Monster 821 etc.
Off-road bikes are also known as dirt bikes; specially designed for off-road
events. Compared to roadgoing motorbikes, off-road machines are simpler and
lighter, having long suspension travel, high ground clearance, and rugged
construction with little bodywork and no fairings for less damage in spills. Wheels
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(usually 21" front, 18" rear) have knobby tires, often clamped to the rim with a rim
lock.I.e.Enduro, Supermoto, Suzuki Jr50, Endurocross, Erzberg Rodeo etc.
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COMPANY
PROFILE
37
History of Bajaj Auto
The Bajaj Group was founded in 1926 by Jamnalal Bajaj. The Bajaj group
comprises of 34 companies. 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.
Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading
Corporation Private Limited. The company is into manufacturing of motorcycles,
scooters and three–wheelers. In India, Bajaj Auto has a distribution network of
485 dealers and over 1,600 authorized services centers. It has 171 exclusive
dealers for the three–wheeler segment .It has total 3750 rural outlets in rural
areas.The Bajaj brand is well–known across several countries in Latin America,
Africa, Middle East, South and South East Asia. It has a distribution network in
50 countries with a dominant presence in Sri Lanka, Colombia, Bangladesh,
Mexico, Central America, Peru and Egypt.
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a. Company profile of Bajaj auto
Website www.bajajauto.com
39
Plants of Bajaj Auto
Bajaj Auto’s has in all three plants, two at Waluj and Chakan in Maharashtra and
one plant at Pant Nagar in Uttaranchal, western India.
Vision
Mission
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Models of Bajaj Motorcycle
Bajaj CT 100
41
Timeline of New Releases of Bajaj Auto
1997 – (Bajaj KB125) Kawasaki Bajaj Boxer, rear engine diesel autorickshaw.
1999 – Bajaj Legend, Bajaj Bravo, Bajaj Chetak 99, Bajaj Spirit
2003 – Caliber 115, Kawasaki Bajaj Wind 125, Bajaj Pulsar DTS-i
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2004 – Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj
Discover DTS-i
2007 – Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel
Injection), XCD 125 DTS-Si
2009 – Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj
Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-
Si, Kawasaki Ninja 250R
2012 – Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST
2015 - Bajaj Platina 100 ES, Bajaj CT 100 (Re introduced), Pulsar RS 200,
Pulsar AS200 & AS150, Pulsar NS150
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Awards and Recognition
Bajaj Pulsar 135 LS received Bike of the Year 2010 award from BBC –
TopGear and Bike India.
Pulsar 220 DTS-Fi received the Bike of the Year 2008 award by all major
Indian automobile magazines like Overdrive, AutoCar, Business Standard
Motoring and Bike Top Gear.
In 2006, Bajaj Auto won the Frost & Sullivan Super Platinum Award for
manufacturing excellence in its Chakan Plant.
It received award for The Most Customer Responsive Company in
Automobiles category in a survey conducted by Economic Times for the
years 2004, 2006 and 2008.
Bajaj Auto received the Bike Maker of the Year award in ICICI Bank
Overdrive Awards 2004.
Bajaj Pulsar 180 DTS-i won the BBC World Wheels Viewer’s Choice 2
Wheeler of the Year 2003 award.
44
Management team of Bajaj Auto
45
Introduction of Shivam Bajaj
E-mail Shivambike77@gmail.com
Number of employee 30
46
Two more authorized dealers of Bajaj Motorcycleare available in Surat
city.
47
b. Organogram
Owner
Sales Workshop
Back Office
Executive Manager
Workshop
Person
48
c. Division/ Departments
There are many departments. Name of the departments are following them:
Sales Department
Service Department
Accessories Department
Finance Department
HR Department
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d. SWOT Analysis
Strengths
Highly experienced management.
Widespread distribution network.
Good experience workers.
Excellent marketing.
Excellent reputation in market.
Weaknesses
After sales services is very poor.
Lag in the distribution of products or payment delays.
Opportunities
Threats
Cheaper imports from countries like China.
Entry of international brands.
Other motorcycle players have a strong brand presence.
50
e. Market Position
In two wheeler market, Bajaj Auto faces stiff competition from new and existing
players. Various product launches by Hero Motor Corp, Honda, Yamaha and
TVS are expected over the medium term and this could put pressure on the
domestic market share of the Company.Bajaj Auto sales declined by 4% to
301,826.Bajaj Auto being in the list of downfall.
Bajaj Auto is the world’s largest three-wheeler manufacturer. The domestic three
wheeler industry has three major participants namely Bajaj Auto, Piaggio
Vehicles, Mahindra and Mahindra. For FY 2014, the Company has a leadership
position in the segment with 53.7% market share. To maintain its position, the
Company has launched a number of new product variants focusing on best
mileage, competitive pricing, and low maintenance cost.
Bajaj Auto has a diversified product portfolio including motorcycles for all
segments: Platina, Discover, Pulsar and Ninja (sport) and sizeable presence in
three-wheelers segment. The Company derives about one-third of its revenues
from the export of two and three-wheelers. This product diversification helped
Bajaj Auto achieve its highest ever EBITDA in FY 2013-14.
Their sales as compared to May 2014, this year were lower which stood at
301,862 units compared to 313,020 in 2014 reporting a decline of 4%. While its
commercial vehicle saw a rise in sale by 13% to 43,576 units in May 2015 as
compared to the numbers of 38,416 units in May 2014.
The Company has shown consistent growth over the last 5 years (2009-10 to
2013-14). Its net revenue from operations over this period grew at an impressive
CAGR of 9.94 %. For FY 2014, income from operations increased by 0.58 % to
Rs. 20,158.29 Cr. from Rs. 20,041.99 Cr. The Company has a strong dividend
history and has maintained an average dividend yield of 4.48% over the last 5
financial years. For FY 2014, the Company declared a dividend of 500 % i.e. Rs.
50 per share.
51
REVIEW OF
LITERATURE
52
Mrs.G. Mahalakshami (Nov 2014) studied of “customer satisfaction on two
wheelers a special reference with TVs XL in Theni district”. And found from
survey that two wheeler brands are taken necessary promotional activities to
increase their demand by introducing new models. In olden days the people used
only the bicycle and rarely used the two wheelers. But now a days each and
every one have the two wheelers in Theni district most of the respondents prefer
the TVs XL for their riding comfort and satisfied with their services.
53
satisfied with the mileage and performance of the bike, 10 percent of the
customers are dissatisfied with the mileage. Also the respondents were aware
about this company. Most of the customers agree that Honda is best quality with
reasonable price the attitude 50% of customers towards price of Honda Bikes is
reasonable. But 10% of the customers are asking for improvement in the quality.
54
thestudy that Nano car customers are not satisfied with the performance and
waiting period of car but they satisfied with the safety of car and fire incidences
report that has impact on the customer satisfaction.
Singh (2011) study on "An empirical review of the product and customer
satisfaction of Tata commercial vehicles" to find out the quality of service,
performance. These studies they find that consumer prefer the Tata commercial
vehicles due to its better quality, brand image, easy availability of service
stations, spare part quality etc.
55
satisfied with the overall performance of their vehicle. The customers are
satisfied with the fuel efficiency, brand image, after sales service and economy in
purchase etc.
Rao and Kumar (2012) revealed study on "Customer satisfaction towards Tata
Motors - A study on Passenger cars in Warangal district of Andhra Pradesh" with
the objectives to study the customer satisfaction with the usage of vehicles, after
sale service, key area of strength, pricing affects, service and quality. They take
the sample of 100 respondents and used the percentage technique. They
concluded from the study that majority of customers are satisfied with the safety,
dealer service, customer relationship and availability of spares etc.
56
popularity of the brand also. Overall, it can be concluded that customers are
satisfied with the price, appearance of the vehicle and comfortability in crowded
area but they expect variety of models.
Ms. AmeerAsra Ahmed & Dr. M.S. Ramachandra& Mr. Siva NagiReddy (Oct-
Dec 2014) study on “Customer Satisfaction level towards Royal Enfield Bullet”
and they found that most of the respondents were not fully satisfied with the
price, performance, utility benefits, aesthetics and service scheme of their Royal
Enfield Bullet Most of the respondents were happy riding Royal Enfield Bullet and
also they were overall satisfied with the performance of their Royal Enfield Bullet.
In younger generation middle age are more interesting to purchase this bullet.
57
onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the
availability of fuel efficient low power bikes, demand swelled, resulting in Hero
Honda.
Mrs. Beena John & Dr. S. Pragadeeswaran (March- April 2013) studied on
“Small Cars Consumer Preference in Pune city” and they found that demographic
factors like age, gender, education, status, and income influence consumers
indirectly for small car buying preference. Value consciousness & price quality
inference are the important factors which influence small car buying. Male
consumers preferred Diesel cars while female respondents preferred petrol cars
Sagar and Chandra (2004) study on “Customer preference towards small cars”
and find that, how Indian car industry has leaped forward technologically with
intensified technological capabilities .the industry is driven by a confluence of
factors such as strong competition, changing consumer preferences, government
policies especially with tightening of emission standards, and the global
strategies of the various players. They detailed about cars manufactured in India
with better designs& incorporating advanced technologies that are often
comparable with those available globally and also commented Indian car exports
are also growing in leaps and bounds.
Banerjee, Ipsita (2011) studied about “Car Acquisition & Ownership Trends in
Surat city” and found that vehicle choice behavior recognized that household
income is the chief determinant of the number and size of cars that household
58
possess, and that family size is a much less important factor & smaller vehicles
were preferred even by larger family.
59
RESEARCH
METHODOLOGY
60
a. Problem Statement
In today’s intensely competitive environment, companies today are constantly
looking for ways to attract customers by having a better understanding of
changing customer preferences. The ever changing market characteristics have
huge impact on corporate decisions. Therefore this study has been conducted to
find the Customer Preference and Satisfaction towards Bajaj Bikes.
61
b. Research Objective
I. Primary objective
To ascertain the customer preference and satisfaction towards the Bajaj
bikes.
II. Secondary objective
To determine which is/are the most attractive attribute for purchasing Bajaj
bikes.
To find the areas of improvement of the Bajaj bikes.
To know the respondents problems towards Bajaj bikes.
To study association between demographic variables and different
attributes of Bajaj bikes.
62
c. Research Design
I. Type of Design
Descriptive Research Design
II. Types of Data
Primary data
III. Instrument for data collection
Questionnaire
IV. Sample population
Customers who are using Bajaj bike
V. Sample area
Surat city
VI. Sample size
200
VII. Sampling Method
Non-probability convenience sampling method
VIII. Tools for Analysis
Charts with the use of Microsoft Excel 2010
Chi-square test with the use of SPSS 16.0
IX. Limitations of the Study
The study has been conducted only in Surat city and so the opinion of the
respondents in Surat only has been considered. A conclusion is based on
assumption. It has been assumed that the answers given by the
respondents are true and adequate. The time allotted for the study was
short otherwise a more in depth study could be made.
I have taken only 200 respondents which may or may not represent the
whole population.
63
DATA ANALYSIS
&
INTERPRETATION
64
1) Frequency of Age (in years)
Table 6.1
Fig. 6.1
3.5%
18-30
31-45
45% 51.5%
46-60
Interpretation
Out of 200 respondents 51.5% of respondents are 18-30 years age and 45% of
respondents are 31-45 years age whereas only 3.5% of respondents are 46-60
years age.
65
2) Frequency of Occupation
Table 6.2
Fig. 6.2
0.5%
0.5% Professional
34.5%
Interpretation
66
3) Frequency of Education
Table 6.3
Fig. 6.3
4%
13.5%
H.S.C. or below
Undergraduate
24%
Graduate
Postgraduate
58.5%
Interpretation
67
4) Frequency of Monthly income
Table 6.4
Fig. 6.4
50
44%
45
40 37.5%
35
30
25 Monthly
18.5% income
20
15
10
5
0
Less than 15000 15001-30000 30001-50000
Interpretation
68
5) Frequency of how did you come to know about Bajaj bike.
Table 6.5
Fig. 6.5
20%
29%
Friends
Media
Relatives
51%
Interpretation
Out of 200 respondents 51% of respondents have known about Bajaj bikes from
media, where as 29% of respondents known about Bajaj bikes from relatives and
20% of respondents have known from friends.
69
6) Which model did you buy?
Table 6.6
70
Fig. 6.6
10
Model
4
Interpretation
71
7) Which is/are the most attractive attribute/attributes?
Table 6.7
72
Fig. 6.7
15.00
10.00
Most Attractive
attribute
5.00 3.94%
2.95%
0.74% 1.23% 1.35%
0.00
Interpretation
73
8) While comparing with other bike; the model of Bajaj bike is?
Table 6.8
Fig. 6.8
Need to
improve
5%
Good
95%
Interpretation
Out of 200 respondents 95% of respondents have said model of Bajaj bike is
good, but 5% of respondents have said need to improve the model of Bajaj bike.
74
9) Frequency of customer satisfaction towards Price
Table 6.9
Fig. 6.9
2% %2
10%
Highly satisfied
Satisfied
Average
29%
Dissatisfied
57%
Highly dissatisfied
Interpretation
From the above table it is clear that 57% of the respondents are satisfied, 29% of
the respondents are average satisfied with the price of Bajaj bike. While 10% of
the respondents are dissatisfied, 2% of the respondents are highly satisfied and,
2% of the respondents are highly dissatisfied.
75
10) Frequency of customer satisfaction towards Mileage
Table 6.10
Fig. 6.10
2%
5% 3%
Highly satisfied
Satisfied
Average
40.5% 49.5% Dissatisfied
HIghly dissatisfied
Interpretation
From the above table clear that 49.5% of the respondents are satisfied and
40.5% of the respondents are average satisfied with the mileage of Bajaj bike.
While 5% of the respondents are dissatisfied, 3% of the respondents are highly
satisfied and 2% of the respondents are highly dissatisfied.
76
11) Frequency of customer satisfaction towards look & style
Table 6.11
Fig. 6.11
3% 5.5%
8%
Highly satisfied
37%
Satisfied
46.5% Average
Dissatisfied
Highly dissatisfied
Interpretation
From the above table clear that 46.5% of the respondents are average satisfied
and 37% of the respondents are satisfied with the look & style of Bajaj bike.
While 8% of the respondents are dissatisfied, 5.5% of the respondents are highly
satisfied and 3% of the respondents are highly dissatisfied.
77
12) Frequency of customer satisfaction towards Pickup
Table 6.12
Fig. 6.12
5% 5.5%
5%
Highly satisfied
Satisfied
36.5%
48% Average
Dissatisfied
Highly dissatisfied
Interpretation
From the above table clear that 48% of the respondents are satisfied and 36.5%
of the respondents are average satisfied with the pickup of Bajaj bike. While 5%
of the respondents are dissatisfied, 5.5% of the respondents are highly satisfied
and 5% of the respondents are highly dissatisfied.
78
13) Frequency of customer satisfaction towards Engine capacity
Table 6.13
Fig. 6.13
4.5%
8% 4%
Highly satisfied
Satisfied
31.5%
52% Average
Dissatisfied
Highly dissatisfied
Interpretation
From the above table clear that 52% of the respondents are satisfied and 31.5%
of the respondents are average satisfied with the engine capacity of Bajaj bike.
While 8% of the respondents are dissatisfied, 4.5% of the respondents are highly
satisfied and 4% of the respondents are highly dissatisfied.
79
14) Frequency of customer satisfaction towards Colors
Table 6.14
Fig. 6.14
Dissatisfied Highly
5% dissatisfied
3%
Highly
satisfied
14%
Average
39%
Satisfied
39%
Interpretation
From the above table clear that 39% of the respondents are satisfied and 39% of
the respondents are average satisfied with the colors of Bajaj bike. While 5% of
the respondents are dissatisfied, 14% of the respondents are highly satisfied and
3% of the respondents are highly dissatisfied.
80
15) Frequency of customer satisfaction towards maintenance cost
Table 6.15
Fig. 6.15
3.5%
8%
14%
Highly satisfied
Satisfied
31.5% Average
Dissatisfied
Highly dissatisfied
43%
Interpretation
From the above table clear that 43% of the respondents are average satisfied
and 31.5% of the respondents are satisfied with the maintenance cost of Bajaj
bike. While 14% of the respondents are dissatisfied, 8% of the respondents are
highly satisfied and 3.5% of the respondents are highly dissatisfied.
81
16) Frequency of customer satisfaction towards Brand image
Table 6.16
Fig. 6.16
3.5% 5.5%
6.5%
Highly satisfied
39.5% Satisfied
45% Average
Dissatisfied
Highly dissatisfied
Interpretation
From the above table clear that 48% of the respondents are average satisfied
and 39.5% of the respondents are satisfied with the brand image of Bajaj bike.
While 6.5% of the respondents are dissatisfied, 5.5% of the respondents are
highly satisfied and 3.5% of the respondents are highly dissatisfied.
82
17) Frequency of customer satisfaction towards Resale value
Table 6.17
Fig. 6.17
9% 3%
Satisfied
33.50%
Average
Dissatisfied
Highly dissatisfied
54.50%
Interpretation
From the above table clear that 54.50% of the respondents are dissatisfied and
33.50% of the respondents are average satisfied with resale value of Bajaj bike.
While 9% of the respondents are highly dissatisfied and only 3% of the
respondents are satisfied.
83
18) Frequency customer satisfaction towards comfortable ride
Table 6.18
Fig. 6.18
5.50% 3%
11.50%
Highly satisfied
Satisfied
43% 37% Average
Dissatisfied
Highly dissatisfied
Interpretation
From the above table clear that 37% of the respondents are satisfied and 43% of
the respondents are average satisfied with the comfortable ride of Bajaj bike.
While 5.5% of the respondents are dissatisfied, 11.5% of the respondents are
highly satisfied and 3% of the respondents are highly dissatisfied.
84
19) Frequency of customer satisfaction towards after sales services
Table 6.19
Fig. 6.19
Highly Satisfied
dissatisfied 2.5%
7.5%
Average
22.5%
Dissatisfied
67.5%
Interpretation
From the above table clear that 67.5% of the respondents are dissatisfied and
7.5% of the respondents are highly dissatisfied with the after sales services of
Bajaj bike. While 22.5% of the respondents are said average and only 2.5% of
the respondents are satisfied.
85
20) Frequency of Rank
Table 6.20
Fig. 6.20
200
180
160
140 Rank 1
120 Rank 2
100 Rank 3
80 Rank 4
60 Rank 5
40 Rank 6
20
0
Bajaj Hero Honda Yamaha Suzuki TVS
86
Interpretation
87
21) Frequency of what problem you face while using the vehicle?
Table 6.21
Fig. 6.21
17.5%
7% Starting trouble
Interpretation
From the above table clear that 63.5% of the respondents are facing battery
problem while using the Bajaj bike. While 17.5% of the respondents are facing
starting trouble, 12% of the respondents are facing pickup problem and, 7% of
the respondents are facing mileage problem while using the Bajaj bike.
88
22) Frequency of would you recommended Bajaj bikes to your friends or
others?
Table 6.22
Fig. 6.22
No
15%
Yes
85%
Interpretation
From the above table clear that 85% of the respondents have recommended
Bajaj bikes to his friends or others while, 15% of the respondents have not
recommended Bajaj bikes to his friends or others.
89
Chi-square test
Count
Mileage Attribute
No Yes Total
15001-30000 2 86 88
30001-50000 2 35 37
Total 14 186 200
90
Table 6.24
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Interpretation
91
24) Chi-square between customer satisfaction towards price and customer
monthly income
H0: There is no association between customer satisfaction towards price and
customer monthly income.
H1: There is association between customer satisfaction towards price and
customer monthly income.
Table 6.25
Monthly income
Dissatisfied 9 7 4 20
Highly dissatisfied 0 2 2 4
Total 75 88 37 200
92
Table 6.26
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Interpretation
The value of Pearson Chi-square is 12.818 and associated significant p-value is
0.118 which is greater than the significance level (0.05) so, researcher fail to
reject null hypothesis. Thus, it is inferred that there is no association between
Customer satisfaction towards price and customer monthly income.
93
25) Chi-square between customer satisfaction towards comfortable ride and
customer occupation
H0: There is no association between customer satisfaction towards comfortable
ride and customer occupation.
Table 6.27
Count
Occupation
Satisfaction Highly
6 9 0 8 0 23
towards satisfied
Comfortable Satisfied 24 31 0 19 0 74
ride
Average 31 20 1 33 1 86
Dissatisfied 6 5 0 0 0 11
Highly
1 4 0 1 0 6
dissatisfied
Total 68 69 1 61 1 200
94
Table 6.28
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Interpretation
The value of Pearson Chi-square is 17.960 and associated significant p-value is
0.326 which is greater than the significance level (0.05) so, researcher fail to
reject null hypothesis. Thus, it is inferred that there is no association between
customer satisfaction towards comfortable ride and customer occupation.
95
26) Chi-square between customer satisfaction towards Look & style and
customer age
H0: There is no association between customer satisfaction towards look & style
and customer age.
H1: There is association between customer satisfaction towards look & style and
customer age.
Table 6.29
Count
Age(in Years)
Average 42 47 4 93
Dissatisfied 7 8 1 16
Highly
0 5 1 6
dissatisfied
Total 103 90 7 200
96
Table 6.30
Chi-Square Tests
Asymp. Sig.
Value Df (2-sided)
Interpretation
The value of Pearson Chi-square is 17.344 and associated significant p-value is
0.027 which is less than the significance level (0.05) so, researcher reject null
hypothesis. Thus, it is inferred that there is association between customer
satisfaction towards look & style and customer age.
97
27) Chi-square between customer satisfaction towards brand image and
customer occupation
H0: There is no association between customer satisfaction towards brand image
and customer occupation.
Table 6.31
Count
Occupation
Satisfaction Highly
6 2 0 3 0 11
towards satisfied
Brand image Satisfied 18 29 1 30 1 79
Average 36 30 0 24 0 90
Dissatisfied 4 7 0 2 0 13
Highly
4 1 0 2 0 7
dissatisfied
Total 68 69 1 61 1 200
98
Table 6.32
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 15.583a 16 .482
Likelihood Ratio 16.511 16 .418
Linear-by-Linear
2.874 1 .090
Association
N of Valid Cases 200
Interpretation
99
28) Chi-square between customer education and maintenance cost attribute of
Bajaj bike
Table 6.33
Count
Maintenance cost
Attribute
No Yes Total
Education H.S.C. or below
0 21 21
Undergraduate 8 40 48
Graduate 10 113 123
Postgraduate 2 6 8
Total 20 180 200
100
Table 6.34
Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 7.182a 3 .066
Likelihood Ratio 8.426 3 .038
Linear-by-Linear
.503 1 .478
Association
N of Valid Cases 200
Interpretation
The value of Pearson Chi-square is 7.182 and associated significant p-
value is 0.06 which is greater than the significance level (0.05) so,
researcher fail to reject null hypothesis. Thus, it is inferred that there is no
association between customer education and maintenance attribute of
Bajaj bike.
101
FINDING
&
CONCLUSION
102
a. Findings
103
The study reveals that majority of the respondents are said average and
majority of the respondents are satisfied with the mileage, look & style,
pickup, colors, maintenance cost, and brand image of Bajaj bikes.
The study reveals that Hero is a 1st rank, Honda is a 2nd rank, Bajaj is 3rd
rank, Yamaha is a 4th rank, Suzuki is a 5th rank, and TVS is a 6th rank.
Majority of the respondents are facing battery problem while using Bajaj
bike.
104
b. Conclusion
From the research work it concludes that majority of the customer prefer Bajaj
bikes on the basis of price, mileage, maintenance cost, and engine capacity
attributes. Bajaj need to improve on battery of their bikes; because customers
have facing this problem while using the Bajaj bikes. Bajaj doing very well on its
durability of bikes, comfortable ride, and after sales services for increases their
sales. Most of buyers are satisfied with the price, mileage, look & style provided
by Bajaj. Look & style of bike is associated with age of buyers; whereas there is
no association between occupation and Brand image of Bajaj bikes.
105
BIBLIOGRAPHY
106
Bibliography
Websites
Journal Articles
Dr. Mrs. PUNITHAVATHY PANDIAN, A ARUNACHALA RAJAN. "A Study on Analysis of the
Customer Satisfaction Level Towards the Use of Bajaj Bikes With Special Reference to
Tirunelveli Town, Tamilnadu." INDIAN JOURNAL OF RESEARCH (2014).
Jani, Kerav Pandya & H. J. "Customer Satisfaction among Two-Wheeler Users An Indian
experience – with special reference to motorcycle users." SIES Journal of Management
(2011).
107
John, Mrs. Beena and Dr. S. Pragadeeswaran. "A STUDY OF SMALL CAR CONSUMER
PREFERENCE IN PUNE CITY." Asian Journal of Marketing & Management Research
(2013).
Ms. Ameer Asra Ahmed, Dr. M.S. Ramachandra, Mr. Siva Nagi Reddy. "A STUDY ON
CUSTOMER SATISFACTION LEVEL OF ROYAL ENFIELD BULLET." International Journal of
Business and Administration Research Review (2104).
108
ANNEXURE
109
Questionnaire
3) Which is/are the most attractive attribute for purchasing Bajaj bike as per
your preference? (Multiple tick allowed)
[ ] Price [ ] Colors
[ ] Mileage [ ] Maintenance cost
[ ] Stylish look [ ] Brand image
[ ] Pickup [ ] Comfortable ride
[ ] Engine capacity [ ] Others_______________
110
4) What mileage is your bike giving?
[ ] 60Km/Ltr and above
[ ] 50-60Km/Ltr
[ ] 40-50Km/Ltr
[ ] Below 40Km/Ltr
5) While comparing with other bike, the model of the Bajaj bike is?
[ ] Good
[ ] Need to improve
[ ] Can’t say
Attribute 1 2 3 4 5
Price
Mileage
Pickup
Engine capacity
Colors
Maintenance cost
Brand image
Resale value
Comfortable ride
111
7) Rank the company as per your preference.
(Rank 1 higher to Rank 6 lower)
Companies 1 2 3 4 5 6
Bajaj
Hero
Honda
Yamaha
Suzuki
TVS
Personal information:
Name: _____________________________________________
Education:
[ ] H.S.C. or below [ ] Undergraduate
[ ] Graduate [ ] Post graduate
[ ] Others______________
Occupation:
[ ] Businessman [ ] Salaried
[ ] Retired [ ] Student
[ ] Professional [ ] Others_______________
Monthly income:
[ ] Less than 15000 [ ] 15001 – 30000
[ ] 30001 – 50000 [ ] More than 50000
112