CHAPTER 1 INTRODUCTION

EXECUTIVE SUMMARY

Project study report consists of brief description of company BAJAJ AUTO, the special focus on the Customers. My topic is AN ANALYSIS OF CUSTOMER SATISFACTION TOWARDS BAJAJ TWO-WHEELERS .This project contains five sections. The first section contains the Objective of the project and Research methodology. The main objective of my project is to study about BAJAJ AUTO and I will take the questionnaire for doing our project. Second section Literature Review contains information about the Customer satisfaction of BAJAJ AUTO. The study reveals that the majority of the customers have a good opinion about the two-wheeler. And many of them are satisfied by owning two-wheeler. The important factors which effect the buying decision of the customer is the style of the bike. Most of the respondents were using two-wheeler for a period of 1 to 5 years. Majority of the respondents were aware about the product through the print media and TV. Many of the customers think that advertisement and friends suggestions will change the buying decision of the customers at a certain level. Third section is the Company Profile which contains the information about the company BAJAJ AUTO. The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.

The forth chapter is the Finding and Analysis, which is shown with the help of pie charts, bar diagram. Fifth chapter may contain the project limitation and conclusion and at last bibliography and annexure. The data has been collected by the researcher using questionnaire and it has been analyzed.

OBJECTIVES OF THE STUDY:

1. The main objective of the study is to find out to what extent the customers are satisfied or dissatisfied. 2. To know the factors which influences the customers decision for purchasing the Bajaj bike. 3. To study the level of customer satisfaction in terms of the services rendered by the dealer. 4. To study the level of customer satisfaction in terms of the companys after Sales and Services.

CHAPTER - 1 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

2.1 STATEMENT OF THE PROBLEM:

Consumers needs are the focuses of marketing. To be successful marketing managers, it is important for him to understand the nature and characteristics of consumers. The Customer of New Delhi can be described as one who is at active stage of development the difference exists in incomes, literacy, culture make it a Herculean task to typify customer of New Delhi.

India is emerging as one of the fastest developing nation in the world with the economic liberalization in full swing, the most MNC are making a beeline favor country with their Hi-tech consumer durables, particularly. So in two-wheeler industry, the leading local players in the two-wheeler industry are tying up with reputed MNC to come out with new model and technology to cater to the growing needs of the two-wheeler marketing. Generally people buy two wheelers to meet their needs, status, comfort, etc. Among different brands of vehicles Bajaj is the most popular vehicle since many decades. In this context, it is necessary to find out how many consumers prefer Bajaj over other vehicles.

It is necessary to know what more attributes is introduced in Bajaj vehicles can increase their sales.

Therefore this study has been conducted to find the consumers perception towards Bajaj vehicles. 2.4 METHODOLOGY: 1. Sampling: The size of a sample can be determined either by using statistical techniques are through adhoc methods which are used when a person knows from experience what sample size to adopt or when they are constraints that dedicated the sample size. 2. Sample: Sample denotes only a part of the universe and conclusions are draw none the entire universe process of sampling involves selecting the sample size. The type of sample chosen was convenient sampling. 3. Sample unit: The marketing research must define a target that was sampled. 4. Sampling size: It is that which denotes hoe many people surveyed an important decision that has to be taken in adopting a sampling technique about the size of the sample. The size of the sample means the number of sampling units to be selected from the universe for the investigation 5. Sample size - 100.

2.5 TOOLS AND TECHNIQUES FOR COLLECTION OF DATA: Primary data was collected through Questionnaire by distributing questionnaires to the respondents.

Questionnaire consist of personal; details and core details. Seven personal details were included in the question which consisted of name, age, income, sex, occupation, etc. Core details include questions relating to Bajaj vehicles and the responses given by the respondents, which have formed a basis for giving suggestions. 1. Contacting method: In this method the customers were personally contacted and interviewed. 2. Field analysis: A field work is an important step in the process of market research. It has been carried out with in prior planning and with almost accuracy and also in a systematic manner. The prepared questionnaire is circulated among the respondents: the field work activities involve the data collection by containing the respondents the places for data collection were choosing at various areas. Briefly were made to clear away doubts and the concepts to get a better and right response. 2.6 PLAN OF ANANLYSIS: Data collected from various sources were carefully computed, classified, tabulated, analyzed and interpreted. The tables obtained were analyzed with the help of parametric statistical techniques, in order to interpret the data and to draw inferences. Conclusions, suggestions and recommendations are given from this inference.

2.7 ANALYSIS AND INTERPRETATION OF DATA:

Calculation and tabulation of data: After collecting and editing data the first step towards is classification. Classification is arranging the data according into points of similarities and dissimilarities.

1. Objectives of classification: Reduce data into homogenous groups. To prepare data and present it in a tabular form .To condense the mass data in such a way that its salient features are high lightened. To facilitate comparison between variables.

2. Types of classification: Broadly data can be classified on the following four bases: Geographical i.e., Area wise. Chronological i.e., On the bases of time. Qualitative i.e., According to some attributes. Quantities i.e., In terms of magnitude.

3. Tabulation of data: One of the simplest and most reliable devices for summarizing data andpresenting that in meaningful fashion is the statistical table. The process of tabulationinvolves combination and totaling of the collected data and used computerfor tabulating data and omits fractions. The data collected through the researchwork has been analyzed in such a

manner so that to meet the sequence of theobjectives. This chapter shows how the data obtained was tabulated and analyzedin order to draw inferences. The data collected from the respondents havebeen grouped in to categories or classes according to the objectives. The objectivewas to organize information and prepare a summary which would highlight itssalient features. This task is statistically known as tabulation. Firstly the answerswere recorded and depending upon the similarity, the response grouping wasdone. The tabulation was done by editing function. It is the process by which datacollected has been scrutinized to insure consistency and accuracy.The data collected was compiled, encrypted, coded and tabulated for furtherparametric analysis. The analysis is encoded in following tables and graphs.

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CHAPTER - 2 Review of Literature

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1.7CUSTOMER SATISFACTION: Organizations are increasingly interested retaining existing customers while targeting non-customers measuring customer satisfaction provides an indication of how successful the organization is at providing products and /or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and the product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlates with satisfaction behaviors such as return and recommended rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products. 1.7.1 CUSTOMER SWITCHING: The switching path is triggered by a factor that changes the present relationship between customer and supplier by somehow making the customer aware of different reasons for switching. This initiating factor affects the entire switching path. There are three different triggers: external, internal, and situational. In the trigger, the company that the customer has switched to has served as some kind of comparative object vis-a-vis the company with which he has broken the relationship. The new company has perhaps changed or improved its business concept, is a new competitor, or simply can offer something that the former company could not. During the process, the customer begins to consider a change and becomes sensitive to the various factors that finally lead to a switch. The time span can vary and is here termed process duration.

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The main reason for switching, according to the customer, is called the push factor. There are also tip factors, which alone cannot speed up or extend the switching process but which can expedite or delay the path that the customer goes through while considering a change. Even other factors could be classified as causes for switching, since the) alone could lead to switching and not only be considered trip factors. These factors are not classified as switching causes but as sub-push factors because the respondents do not consider them to be the main reason for switching. Even if a customer has switched, there can be reasons why he could consider returning to the first company, by the force of a pull factor. Even if a customer breaks the relationship with a company, it is important to stress that the break should be handled professionally and end on friendly terms. The former customer is otherwise likely to spread negative word-of-mouth

1.7.2 CUSTOMER EXPECTATION: Customer satisfaction is largely a reflection of the expectations and experiences that the customer has with a product or service. However expectations also reflect that influences the evaluation of the product or service. When we make major purchases, we research the product or service and gain information from the advertising, salespersons, and word-ofmouth from friends and associates. This information influences our expectations and ability to evaluate quality, value, and the ability of the product or service to meet our needs. In meeting customers' requirements and measuring customers' satisfaction indexes, customer perception should be definitely a key consideration. Qualified services in the operation execution layer, technical management layer and business development layer are necessary. However, it is even more important to efficiently understand customer

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expectations and make efforts to exceed their expectations. Therefore, customer perception management becomes a central topic. Frankly speaking, among all indexes in customer satisfaction management, the biggest challenge is customer perception management, or customer perception satisfaction.

1.7.3 NECESSITY OF CUSTOMER SATISFACTION: The emerging consumer movement necessities markets to understand consumer behavior their needs, expectations and problems. It will be easier in exploiting marketing opportunities meeting the challenges of the market. Thus marketers must try to offer the product wanted by the customers at the price he is prepared to pay, through distribution channel convenient to him and with a proper promotional activities. A consumer by nature is extrovert, a study of consumer behavior helps to formulate marketing program mix and policies.

1.7.4 FACTORS: To understand consumer behavior on the eventual buying decisions, the major factors have to be clearly understood and analyzed. They are: 1. Buyer characteristics. 2. Personal characteristics. 3. Seller characteristics. 4. Situational characteristics.

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1. Buyer characteristics: It deals with the individuals, personal, psychological, cultural and social characteristics.

2. Personal characteristics: It deals with the factors like age, sex, occupation, lifestyles, economic and financial conditions, culture which affects the consumers purchase behavior.

3. Seller characteristics: Influences the buying decision factor lies in the image of the facilities offered by the companies or retail out lets etc affects the choice of the buyers. The buyers decision will be based on the attitudes, behaviors and characteristics of the seller or sales person.

4. Situational characteristics; This also plays an important role in influencing the decision of the buyer. The aspects such as time, day, season, financial conditions, marketing situations, demand for the products etc.

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1.7.5 METHODS OF TRACKING AND MEASURING CUSTOMER SATISFACTION:

A company tools for tracking and measuring customer satisfaction range from primitive to sophisticate. The following methods are used to measure customer satisfaction

1. Complaints and suggestion system: A customer centered organization would make it easy for its customer to deliver suggestions and complaints. Many customers maximize the ease with telephone numbers, customer can inquire, make suggestion on complaint. These information flows provide these companies with many good ideas and enable them to act more rapidly to resolve the problems.

2. Lost customer analysis: Companies should contact customers who have stopped buying or switched to another supplier. It is important to conduct exit interview and monitor the customer loss rate.

3. Customer satisfaction survey: A company must not conclude that it can get a full picture of customer satisfaction and dissatisfaction by simply running a complaint and suggestion system. Studies show that customer4s are dissatisfied with one out of every ten purchases and less than 2% dissatisfied customers will complain customers may feel that their complaints are minor.

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4. Purchasing and consuming It is important to distinguish between purchase and consumption for three reasons. Firstly the product may be purchased by 1% and consumed by another. Secondly the purchase depends on consumer expectation of the degree to which brands are likely to satisfy needs. Thirdly a consumer post purchase evolution determines whether the brand is likely to be repurchased.

5.Satisfaction v/s Dissatisfaction Satisfaction occurs when customers expectations met to exceed and the purchase decision is reinforced. Satisfaction reinforces positive attitudes towards the brand leading to a greater likelihood that the customer will re purchase the same brand, dissatisfaction results when consumer expectation is not met. Thus we assert that the buyers forms a judgment of value acts on it whether the buyers are satisfied after purchase depends upon the offer performance in relation to the buyers expectation. Here is our definition of customer satisfaction, thus the satisfaction level is a function of the difference between perceived performance and expectations. a customer could experience on their board level of satisfaction. If the performance matches the expectations the customer is satisfied if the performance exceeds expectations, a customer is highly satisfied, pleased or delighted. But how do buyers form their expectations? Expectations are formed on the basis of the buyers past buying experience, statements made by friends and associates and market and competitor information and promises etc. if marketers raise expectations to high the buyers are likely to be disappointed, some of todays most successful company

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is raising expectations and delivering performance to match. Thus companies are aiming for total consumer satisfaction.

Customer Satisfaction:
Customer Satisfaction may be defined as a qualitative measure where in a customer experiences various degrees of satisfaction until the performance of the product matches his expectations. Customers satisfaction with a product depends on the products performance relative to the buyers expectations. If the performance of the product falls short of his expectations the customer is dissatisfied. If the performance of the product matches his expectations the customer is satisfied. If the performance of the product exceeds his expectations the customer is highly satisfied. Customer Satisfaction can be achieved through quality, value and service. For a customer-centered company customer satisfaction is both a goal as well as a major factor in the companys success. Companies that achieve high customer satisfaction ratings must make sure that their target customers come to know of it. The companies must realize that highly satisfied customers produce several benefits to the company. They are fewer prices sensitive and they remain customers for the longer period. They also talk favorably to the others about the company and its product and services. Although customer-centered firms seek to deliver a high level of customer satisfaction than their competitors, they do not attempt to maximize the customer satisfaction. A company can always increase customer satisfaction by lowering the price and increasing its services. But this may result in lower profits. The company may be able to increase
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profitability along with customer satisfaction by improving its manufacturing or investing on the R & D. Satisfaction is the customers fulfillment response. It is a judgment that a product or service feature, or the product or service itself, provides a pleasurable level of consumption-related fulfillment. In less technical terms, we translate this definition to mean that satisfaction is the customers evaluation of product or service in terms of whether that product or service has met their needs and expectations. Failure to meet needs and expectations is assumed to result in dissatisfaction with the product or service. In addition to a sense of fulfillment in the knowledge that ones needs have been met, satisfaction can also be related to other types of feelings, depending on the particular context or type of service. For example, satisfaction can be viewed as contentment more of a passive response that consumers may associate with services they dont think a lot about or services that they receive routinely over time. Satisfaction may also be associated with feelings of pleasure or services that make the consumer feel good or associated with a sense of happiness. For those services that really surprise the consumer in a positive way, satisfaction may mean delight. And in some situations, where the removal of a negative leads to satisfaction, the consumer may associate a sense of relief with satisfaction.

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It is also important to recognize that although were tend to measure customer satisfaction at a particular point in time as if it were static. Satisfaction is dynamic, moving target that may evolve overtime. Influenced by a variety of factors. Particularly when product usage or the service experience takes place over time, satisfaction may be highly variable depending on which point in the usage or experience cycle one is focusing on. Similarly, in the case of very new services or a service not previously experienced, customer expectations may be barely forming at the point of initial purchase; these expectations will solidify as the process unfolds and consumer begins to form his or her perception. Through the service cycle the consumer may have a variety of different experiences some good, some not good-and each will ultimately impact satisfaction.

What determines Customer Satisfaction?

Customer Satisfaction is influenced by specific product or service features and by perceptions of quality as suggested. Satisfaction is also influenced by customers

emotional responses, their attributions, and their perceptions of equity.

Product and service features

Customer Satisfaction with a product or service is influenced by significantly by the customers evaluation of product or service features. Research has shown that customers of services will make trade-offs among different service features (for example, price level versus quality versus friendliness of personnel versus level of customization), depending on the type of service being evaluated and criticality of service.

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Customer Emotion
Customers emotions can also affect their perceptions of satisfaction with products and services. These emotions can be stable, preexisting emotions.

Attributions for Service success or failure

Attributions- the perceived causes of events influence perceptions of satisfaction as well. When they have surprised by an outcome, consumer tend to look for the reasons, and their assessments of the reasons can influence their satisfaction.

National Customer Satisfaction Indexes

Because of the importance of customer satisfaction to firms and overall quality of life many countries have a national index that measures and tracks customer satisfaction at a macro level. Many public policy makers believe that these measures could and should be used as tools for evaluating the health of the nations economy, along with traditional measures of productivity and price. Customer Satisfaction indexes begin to get at the quality of economic output, whereas more traditional economic indicators tend to focus only on quantity.

The American Customer Satisfaction Index (ACSI)

The ACSI, developed by researcher at the National Quality Research Center at the University of Michigan, is a measure of quality of goods and services as experienced by consumers. The measure tracks customer perceptions across 200 firms representing all major economic sectors, including government agencies. For each company

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approximately 250 interviews are conducted with current customers. Each company receives an ACSI score computed from its customers perceptions of quality, value, satisfaction, expectations, complaints, and future loyalty.

Customer Expectations of Service

Customer Expectations are beliefs about service delivery that functions as standards or reference points against which performance is judged. Because customers compare their perceptions of performance with these reference points when evaluating service quality, through knowledge about customer expectations is critical to services marketers. Knowing what the customer expects is the first and possibly most critical step in delivering quality service. Being wrong about what customers want can mean expending money, time, and other resources on things that do not count to the customer. Being wrong can even mean not surviving in a fiercely competitive market.

Customer Perceptions
How customers perceive services, how they assess whether they have experienced quality service, and whether they are satisfied. Customers perceive services in terms of the quality of the service and how satisfied they are overall with their experiences. These customer oriented terms quality and

satisfaction have been the focus of attention for executives and researchers a like over the last decade or more. Companies today recognize that they can compete more effectively by distinguishing themselves with respect to service quality and improved customer satisfaction.

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Satisfaction versus Service quality

Practitioners and writers in the popular press tend to use the terms satisfaction and quality interchangeably, but researches have attempted to be more precise about the meanings and measurements of the two concepts, resulting in considerable debate. Consensus is growing that the two concepts are fundamentally different in terms of their underlying causes and outcomes. Although the certain things in common, satisfaction is generally viewed as a broader concept, whereas service quality assessment focuses specifically on dimensions of service. Based on this view, perceived service quality is a component of customer satisfaction.

Methods of measuring Customer Satisfaction

A companys tools for tracking and measuring Customer Satisfaction range from Primitive to the sophisticated methods. Companies use following methods to measure how much Customer Satisfaction they are creating.

Complaint & Suggestion Systems:

A customer centered organization would make it easy for its customers who deliver suggestion and complaints. Many restaurants and hotels provides from guests to report their likes and dislikes. Some companies establish customer hot line with toll-free numbers to maximize the ease with which customers can inquire, make suggestions or complaints. This inform action flows provide this companies with many good ideas and enable then to act more rapidly to resolve problems.

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Customer Satisfaction Survey:

A company may not conclude that it can get a full picture of customer satisfaction and dissatisfaction by simply running a compliant and suggestion system. Companies cannot use complaint level as a measure of customer satisfaction. Responsive companies obtain a direct measure of the customer satisfaction by conducting surveys. They send

questionnaires or make phone call to random sample of their recent customer to find out how they feel about various aspects of the companys performance. They will solicit buyers view on the competitors. Customer Satisfaction can be measured in a number of ways. It can be measured directly by asking indicate how satisfied you are with service X on the following scale.
Highly Dissatisfied Dissatisfied Indifferent Satisfied Highly Satisfied

Respondents can be asked as well to rate how much they expected of a certain attribute and also how much they expected it. (Derived Satisfied) Another method is to ask respondents to list any problems they have had with the offer and to list any improvements they could suggest. (Problem Analysis).

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Finally, companies could ask respondents to rate various elements of the offer in terms of the importance of each element and how well the organization performed each element. (Importance, Performance rating). The last method helps the company to know if it is under performing on important elements and over performing on relatively unimportant elements. While collecting customer satisfaction data it would be useful asking additional questions to measure the customers repurchase intention. This will normally be hi gh if the customer satisfaction is high. It would be useful to measure the likelihood or willingness to recommend the company and brand to other persons. A high positive word or mouth score indicates that the company is producing high customer satisfaction

Ghost Shopping:
Companies can hire persons to pose as potential buyers to report their findings on strong and weak points they experienced in buying the companys and competitors product.

Lost Customer Analysis:

Companies should contact customers who have stopped buying or have switched to another supplier to learn why this happened.

Satisfaction:
Satisfaction is a function of perceived performance and expectation. If the performance matches the expectations the customer is satisfied. If the performance exceeds the
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expectations the customer is highly satisfied and delighted. If the performance does not match the expectations the customer is dissatisfied. Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (out-come) in relation to his/her expectation. The link between customer satisfaction and customer loyalty is proportional. The key to generating high customer loyalty is to deliver high customer value. A companys value proposition is much more than its positioning on a single attribute. Most of the successful companies are raising expectations and delivering performances to match. These companies are aiming for TCS Total Customer Satisfaction. Customer satisfaction is both a goal and a marketing tool. Companies that achieve high customer satisfaction ratings make sure that their target market is known. Customer Satisfaction may be defined as a qualitative measure where in a customer experiences various degrees of satisfaction until the performance of the product matches his expectations.

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CHAPTER - 3 Industry Profile

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1.1 INTRODUCTION TO THE INDUSTRY The liberalization policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18% per annum, has become a hot destination for global auto players. A well-developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system, the Automobile Industry of India is also growing at rapid speed, occupying an important place on the canvas of Indian economy. Today Indian automobile industry is fully capable of producing various kinds of vehicles and can be divided into 3 broad categories: cars, two-wheelers and heavy vehicles. Among the twowheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles in the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the in the country.

Snippets The first automobile in India rolled in 1897 in Bombay India being recognized as potential emerging market: 1. Within two wheelers, motorcycles contribute 80% of the segment size. 2. India is the largest three wheeler market in the world 3. India is the largest two-wheeler manufacturer in the world. 4. India is the fifth largest commercial vehicle manufacturer in the world. 5. The number one global motorcycle manufacturer is in India.

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

1.3 EVOLUTION OF TWO WHEELER INDUSTRY IN INDIA: Two wheeler segments is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two wheeler industry has been existence in the country since 1955. it consists of three segments- Scooters, Motorcycles and Mopeds. According to the figures published by SLAM, the share of two-heeler in automobile sector in terms of unit sold was about 80% during 2003-04. This high figure itself is suggesting of the importance of the sector. In

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the initial years entry of the firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry were effectively controlled by state machinery. The lapses in the system had invited fresh policy options that came into being in late 60s. Among these policies Monopolies & Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively.

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COMPANY PROFILE

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1.4.1 THE BACKGROUND OF THE COMPANY: The Bajaj Group was formed in the first days of India's independence from Britain. Its founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth for the common good I always had this merchant prince principally in mind,' said the Mahatma after Jamnalal's death.

Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942. Kamalnayan, however, was preoccupied with India's struggle for independence. After this was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.

The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto became a public limited company.

Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960, at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its first two-wheelers the next year.

Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from Bombay. The company had an annual turnover of Rs 72 million at the time. By

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1970, the company had produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor of two-wheelers, much cheaper to buy and many times more fuel-efficient.

A number of new models were introduced in the 1970s, including the three-wheeler goods carrier and Bajaj Chetak early in the decade and the Bajaj Super and threewheeled, rear engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-77 fiscal year alone.

The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward, Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj scooter sales in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million) in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were cut in half, to Rs 63 million.

1.4.2 BAJAJ AUTO: It is a major Indian automobile manufacturer. It is India's largest and the world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and Chakan (near Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw. The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946. Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two wheeler manufacturer. Its product range encompasses Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.
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The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

1.4.3 COMPANY'S HISTORY: Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

1.4.3.1 TIMELINE OF THE RELEASES:

19601970 Vespa 150 under the licence of Piaggio of Italy 1971 three-wheeler goods carrier 1972 Bajaj Chetak 1976 Bajaj Super 1977 Bajaj Priya 1977 Rear engine autorickshaw 1981 Bajaj M-50 1986 Bajaj M-80, Kawasaki Bajaj KB100, Kawasaki Bajaj KB125, 1990 Bajaj Sunny 1991 Kawasaki Bajaj 4S Champion
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1993 Bajaj Stride 1994 Bajaj Classic 1995 Bajaj Super Excel 1997 Kawasaki Bajaj Boxer, rear engine diesel autorickshaw 1998 Kawasaki Bajaj Caliber, Bajaj Legend, 1999 Bajaj Spirit[6] 2000 Bajaj Saffire, Bajaj Prowler 2001 Eliminator, Bajaj Pulsar, CaliberCroma 2003 Caliber 115, Kawasaki Bajaj Wind 125, Bajaj PulsarDTS-i, Bajaj Endura FX

2004 Bajaj CT 100, New Bajaj Chetak 4-stroke withWonder Gear, Bajaj Discover DTS-i

2005 Bajaj Wave, Bajaj Avenger, Bajaj Discover 112 2006 Bajaj Platina 2007 Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel Injection), XCD 125 DTS-Si

2008 Bajaj Discover 135 DTS-i sport (upgrade of existing 135 cc model) 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 DTSSi, Kawasaki Ninja 250R

2010 Bajaj Discover 150 2011 Bajaj Discover 125 2012 Bajaj RE 60, mini car for intra-city urban transportation
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2012 KTM Duke 200, launch of 200 cc bike from the KTM stable 2012 Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST, launch of 125 cc bike[7]

1.5SPINOFFS AND ACQUISITIONS:

It has been reported that Bajaj is headed for a demerger into two separate companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts created will be worth more than the current whole, as was the case in the de-merger of Reliance Industries.In November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company of KTM Sport Motorcycles AG). The two companies have signed a cooperation deal, by which KTM will provide the know-how for joint development of the water-cooled 4 stroke 125 and 250 cc engines, and Bajaj will take over the distribution of KTM products in India and some other Southeast Asian nations. Bajaj Auto said it is open to take a majority stake in KTM and is also looking at other takeover opportunities. On the 8th of January 2008, Managing Director Rajiv Bajaj confirmed the collaboration and announced Bajaj Auto's intention to gradually increase their stake in KTM to 25%.

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1.6PRODUCT PROFILE: I. AVENGER 220:

Class Engine Transmission Suspension

Cruiser 219.89 cc 5-Speed Telescopic Front - 260mm Hydraulic Disk

Brakes Rear Drum Wheelbase Dimensions Weight Fuel Capacity Price 1,475 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 154 kg 14kmpl
77,159/-

37

II.

PULSAR 200 NS:

Class Engine Transmission Suspension

Sports 199.50 cc 6-Speed Telescopic Front - Petal Hydraulic Disk

Brakes Rear Petal Hydraulic Disk Wheelbase Dimensions Weight Fuel Capacity Price 1,475 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 154 kg 30kmpl
96,750/-

38

III.

PULSAR 220 DTS-i:

Class Engine Transmission Suspension

Standard 220 cc 5-Speed Telescopic Front - Hydraulic Disk

Brakes Rear Hydraulic Disk Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 152 kg 18 kmpl
70,300/39

iv. PULSAR 180 DTS-i:

Class Engine Transmission Suspension

Standard 180 cc 5-Speed Telescopic Front - Hydraulic Disk

Brakes Rear Hydraulic Disk Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 149 kg 18 kmpl
70,300/-

40

IV.

PULSAR 150 DTS-i:

Class Engine Transmission Suspension

Standard 150 cc 5-Speed Telescopic Front - Hydraulic Disk

Brakes Rear Hydraulic Disk Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 135 kg 25kmpl
67,100/-

41

v. PULSAR 135 LS:

Class Engine Transmission Suspension

Standard 135 cc 5-Speed Telescopic Fork Front - Hydraulic Disk

Brakes Rear Hydraulic Disk Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 120 kg 35kmpl
58,900/-

42

V.

DISCOVER 150:

Class Engine Transmission Suspension

Standard 150 cc 5-Speed Telescopic Front - Hydraulic Disk

Brakes Rear Drum Wheelbase Dimensions Weight Fuel Capacity Price 1,305 mm L - 2,195 mm, W 750mm & H 1,070 mm 121 kg 50kmpl
54,350/-

43

VI.

DISCOVER 125 ST:

Class Engine Transmission Suspension

Standard 125 cc 5-Speed Front Telescopic, Rear Nitrox Front - Hydraulic Disk

Brakes Rear Drum Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 120 kg 55kmpl
56,800/-

44

VII.

DISCOVER 100 T:

Class Engine Transmission Suspension

Standard 100 cc 5-Speed Front Telescopic, Rear Nitrox Front - Hydraulic Disk

Brakes Rear Drum Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 120 kg 60kmpl
50,500/-

45

VIII.

PLATINA 100:

Class Engine Transmission Suspension

Standard 100 cc 5-Speed Front Telescopic Fork, Rear Hydraulics Front - Drum

Brakes Rear Drum Wheelbase Dimensions Weight Fuel Capacity Price 1,320 mm (58.1 In) L - 2,195 mm, W 750mm & H 1,070 mm 120 kg 60kmpl
48,000/-

46

ix. NINJA 650 R:

Class Engine Transmission

Sports 649 cc 6-Speed Front: 41 mm Hydraulic Telescopic Fork

Suspension Rear: 4.9 in. Single Offset Laydown Shock Front - Dual Petal Disc with 2-Piston Caliper Brakes Rear Single Petal Disc with hydraulic caliper Wheelbase Dimensions Weight Fuel Capacity Price 1,405 mm L - 2,100 mm, W 760mm & H 1,210 mm 178 kg 15.5kmpl
5,14,000/-

47

IX.

NINJA 300:

Class Engine Transmission

Sports 696 cc 6-Speed Front: 41 mm Hydraulic Telescopic Fork

Suspension Rear: 4.9 in. Single Offset Laydown Shock Front - Dual Petal Disc with 2-Piston Caliper Brakes Rear Single Petal Disc with hydraulic caliper Wheelbase Dimensions Weight Fuel Capacity Price 1,405 mm L - 2,015 mm, W 715mm & H 1,110 mm 164 kg 17.5 kmpl
3,50,000/-

48

X.

KTM DUKE 200:

Class Engine Transmission

Sports 199.5 cc 6-Speed Front: 41 mm Hydraulic Telescopic Fork

Suspension Rear: 4.9 in. Single Offset Laydown Shock Front - Disc with 2-Piston Caliper Brakes Rear Single Petal Disc with hydraulic caliper Wheelbase Dimensions Weight Fuel Capacity Price 1,367 mm L - 2,002 mm, W 837mm & H 1,274 mm 150 kg 35kmpl
,33,000/-

49

CHAPTER 3 FINDINGS AND ANALYSIS

50

GRAPH 1 - SHOWING THE AGE GROUP OF RESPONDENTS:

AGE
9%

39% 27%

18-30 31-40 41-50 50 & Above

25%

AGE GROUP 18-30 31-40 41-50 51 & Above TOTAL

NO.OF RESPONDENTS 39 25 27 9 100

PERCENTAGE 39 25 27 9 100

Table 1 Showing age group of Respondents INTERPRETATION:

The above table shows the number of respondents in accordance to age group. It shows that maximum number of respondents was aged between 31-40 years, 21-30 years, 31-40 years, 41-50 years and also aged above 50 years.
51

GRAPH 2 - SHOWING OCCUPATION OF THE RESPONDENTS:

OCCUPATION
15%

17%

BUSINESS PERSONS STUDENTS GOVERNMENT EMPLOYEES 33% 35% OTHERS

OCCUPATION Business Persons Students Government Employees Others TOTAL

NO.OF RESPONDENTS 15 35 33 17 100

PERCENTAGE 15 35 33 17 100

Table 2 Showing occupation of Respondents. INTERPRETATION:

The above table shows the customers of Bajaj two wheeler products according to their occupation were Students (35%) Employees (33%) Business persons (15%) and Others (17%).
52

GRAPH 3 - SHOWING THE INCOME LEVEL OF THE RESPONDENTS:

INCOME LEVEL
13%

15%

41%

BELOW 20,000 20,000 - 30,000 30,000 - 40,000 40,000 & ABOVE

31%

INCOME GROUP Below 20,000 20,000 30,000 30,000 40,000 40,000 & Above TOTAL

NO.OF RESPONDENTS 41 31 15 13 100

PERCENTAGE 41 31 15 13 100

Table 3 Showing income level of the Respondents. INTERPRETATION:

From the above table it is observed that 41% of the customers were of low income level customers, and 13% of customers are of high income level customer.

53

GRAPH 4 - SHOWING THE FACTORS AFFECTING THE PURCHASE DECESION:

FACTORS AFFECTING BUYING DECISION

31%

33% PRICE MILEAGE STYLE

31%

29%

POWER

FACTORS Price Mileage Style Power TOTAL

NO.OF RESPONDENTS 33 29 31 31 100

PERCENTAGE 33 29 31 31 100

Table 4 Showing the factors affecting the purchase decision. INTERPRETATION:

From the above table it shows that the purchase decisions of the customers were mainly influenced by the price, mileage, power and style of the bike.
54

GRAPH 5 - SHOWING SATISFACTORY LEVEL OF PRICE:

AFFORDABILITY
16%

AFFORDABLE 52% 32% COMPETITIVE COMPARATIVELY HIGH

RESPONSES Affordable Competitive Comparatively High TOTAL

NO.OF RESPONDENTS 52 32 16 100

PERCENTAGE 52 32 16 100

Table 5 Showing satisfactory level of price. INTERPRETATION:

The table shows that, among the respondents the pricing of the Bajaj products is Affordable for 52%, Competitive for 32% and ComparativelyHigh for 16%.

55

GRAPH 6 - TABLE SHOWING AVAILABILITY OF ALL THE REQUIRED ACCESSORIES IN THE SHOW ROOMS:

AVAILABILITY OF ALL THE ACCESSORIES

33% YES NO 67%

RESPONSES Yes No TOTAL

NO.OF RESPONDENTS 67 33 100

PERCENTAGE 67 33 100

Table 6 Showing availability of all the required accessories in the show rooms. INTERPRETATION:

From the above table 67% of the respondents say that they find all the required accessories and spare parts of Bajaj in all show rooms.

56

GRAPH 7 - TABLE SHOWING THE RATING OF THE SERVICES PROVIDED BY THE COMPANY:

RATING OF THE SERVICES PROVIDED

18% 28% BEST BETTER GOOD

54%

RESPONSES Best Better Good TOTAL

NO.OF RESPONDENTS 28 54 18 100

PERCENTAGE 28 54 18 100

Table 7 Showing the rating of the services provided by the company. INTERPRETATION:

From the above table 28% of the respondents say the services provided to them by the company are the best while 54% believe that services are better than the others.

57

GRAPH 8 - TABLE SHOWING CUSTOMER RESPONSES REGARDING THE RESALE VALUE OF THE BIKES:

RESALE VALUE OF THE BIKES

18%

24% GOOD SATISFACTORY POOR

40%

RESPONSES Good Satisfactory Poor TOTAL

NO.OF RESPONDENTS 24 40 18 100

PERCENTAGE 24 40 18 100

Table 8 Showing customer response regarding the resale value of the bikes. INTERPRETATION:

18% of the respondents had the opinion that the resale value of the vehicles is poor and 40% says that the resale value is satisfactory, whereas 18% opinion is excellent.
58

GRAPH 9 - TABLE SHOWING CUSTOMER RESPONSES REGARDINGRECOMMENDATION OF BAJAJ BIKES BY THEM TO OTHERS:

RECOMMENDATION

33%

YES NO 77%

RESPONSES Yes No TOTAL

NO.OF RESPONDENTS 77 33 100

PERCENTAGE 77 33 100

Table 9 Showing customer response regarding recommendation of Bajaj bikes by them to others. INTERPRETATION:

From the above table it shows that 77% of respondents they willrecommend Bajaj products to others
59

GRAPH 10 - TABLE SHOWING CUSTOMER OPINION ABOUTTHE ADVERTISING STRATEGY OF THE BAJAJ BIKES:

OPINION ABOUT PRICING STRATEGY

16%

MOTIVATING 52% 32% INFORMATIVE MAKES NO DIFFERENCE

RESPONSES Motivating Informative Makes No Difference TOTAL

NO.OF RESPONDENTS 52 32 16 100

PERCENTAGE 52 32 16 100

Table 10 Showing customer opinion about the advertising strategy of the Bajaj bikes. INTERPRETATION:

From the above table it shows that 52% of respondents feel motivated by the advertising strategy of the Bajaj products.

60

GRAPH 11 - TABLE SHOWING CUSTOMER OPINION ABOUTSCHEMES & FREE GIFTS OFFERED:

OPINION ABOUT FREE GIFTS & SCHEMES

24% 44% ATTRACTIVE INSUFFICIENT MAKES NO DIFFERENCE 32%

RESPONSES Attractive Insufficient Makes No Difference TOTAL

NO.OF RESPONDENTS 44 32 24 100

PERCENTAGE 44 32 24 100

Table 11 Showing customer opinion about schemes & free gifts offered. INTERPRETATION: From the above table it shows that 44% of respondents find offers and schemes offered to them attractive.

61

GRAPH 12 - TABLE SHOWING CUSTOMER RESPONSES REGARDING WHETHER THEY HAVE GOT THEIR MONEYS WORTH:

MONEY'S WORTH
16%

20%

YES MAY BE NO

64%

RESPONSES Yes May Be No TOTAL

NO.OF RESPONDENTS 20 64 16 100

PERCENTAGE 20 64 16 100

Table 12 Showing customer responses regarding whether they have got their moneys worth. INTERPRETATION: The table shows that 64% of the respondents are satisfied on their Moneysworth and 20% of them are fully satisfied and 16% are not satisfied.

62

CHAPTER 4 CONCLUSION

63

CONCLUSION:

1. The important factors which effect the buying decision of the customer is the Mileage and Style of the bike. 2. Most of the respondents were using the bike for a period of 1 to 5 years. 3. Majority of the respondents were aware about the product through the Friends and TV. 4. Most of the customers have the opinion that advertisement will change the buying decision of the customers at a certain level. 5. From the analysis came to know that the present brand image of Bajaj twowheeler is good. 6. The overall performance of the Bajaj two-wheelers is good. 7. Customers think that the service provided by the company is not satisfactory. 8. Customers are not satisfied with the availability of the bike. 9. Customers think that Latest Version of Bike are not Displayed in the showroom. 10. Customer thinks that the resale value is poor. 11. Price is one of the Key-factor in purchase decisions

64

CHAPTER 5
RECOMMENDATIONS / SUGGESTIONS

65

RECOMMENDATIONS / SUGGESTIONS:

1. More attention should be kept on complaints given by customers and serve them well. 2. Feedback should be taken by after the service of the vehicle and try to deliver the better service next time. 3. More authorized service station should be opened in the city. 4. Management should try to reduce service charges as much as possible by keeping in mind other service centres charges. 5. Cash less schemes for repairs under insurance claims may be arranged to avoid delay in reimbursement. 6. Display the latest version of bike to attract the customer and satisfy number or of model released. 7. By providing better service the resale value of the bike will be good. 8. Management should make availability of sufficient motorcycle model and genuine spare parts.

66

CHAPTER 6 LIMITATIONS OF THE STUDY

67

LIMITATIONS OF THE STUDY:

1. The study is confined to selected customers. 2. This study was confined to a specific area in this case, New Delhi. 3. The survey was conducted only in urban sectors of Respondents thus it cannot be generalized 4. The information collected in this project is highly time bound hence the result cannot be universally applicable.

5. The survey was conducted only for 100 respondents because of time constraint.

68

BIBLIOGARPHY

69

BIBLIOGRAPHY

BOOKS REFERRED:

KOTLER,PHILIP, Marketing Management, Tenth Edition,New Delhi,2002. MAJUMDAR, RAMANUJ, Marketing Research, New Age InternationalPrivate Limited Publishers, New Delhi (2000).

WEBSITES:

www.bajajauto.com www.overdrive.com

70

ANNEXURES

71

QUESTIONNAIRE

NAME: 1. Age Group: 18 30 41 50 31 40 51 & Above

2. Occupation: Business Student Govt. Employee Others

3. Income Group: Below 20,000 20,001 -30,000 30,001 - 40,000 40,001 & Above

4. Rate the factor effecting the purchase decision: Price Mileage Style Power

72

5. What is your opinion on pricing of Bajaj Two-wheelers? Affordable Competitive Comparatively High

6. Do you find all you required accessories & spare parts of Bajaj in all showrooms? Yes No

7. Rate the services provided by Bajaj Auto: Best Better Good

8. Your opinion about the resale value of the bike. Good Satisfactory Poor

9. Would you recommend Bajaj Motor Cycle to others? Yes No

If no please specify _______________________________________________

73

10.What you feel about advertising strategy of Bajaj: Motivating Makes no Difference Informative

11.What is your opinion on occasional discounts / free gifts offered by Bajaj: Attractive Makes No Difference Insufficient

12.On the Whole did you get your moneys worth? Yes May be No

13.Do you have any suggestion for improving the product?

........................................................................

74