A PROJECT REPORT ON HERO HONDA V/S

BAJAJ

BY
(AVINASH KUMAR)
(2009-2012)
A Project Report submitted in partial fulfillment of the requirement of

THE B.B.A PROGRAM (Class of 2009-12)

H.N.B Garhwal University, Srinagar Garhwal
(Uttarakhand)

Doon College of Agriculture Science & Technology

Camp Road Selaqui, dehradun (UK)

Submitted By:
AVINASH KUMAR
BBA 5th Semester
Doon College of Agri. Science & Tech.

Submitted To:
Mr. Anil Pundir
(Lecturer)
(Department of Business Management)

ACKNOWLEDGMENT
One often finds it hard to work in an esteemed organization that gives a
chance to show once potential and acknowledge is efforts and work. In true sense
summer training is an obligation on the part of the organization and due to the lack
of time it is generally seen that for some the whole process of summer training is
nothing more than an eye wash. In order to accomplish a task factors, situations
and persons integrate together to form a background as "no task is a single man's
effort".
.
I would also like to thank Mr. Anil Pundir who always spared sometime to
listen my problems and difficulties faced by me during the program me and always
help me overcome them.

INDEX
Sr No.

Particulars

1.

HISTORY OF HERO HONDA

Page no

14

- Company Profile
2.

HISTORY OF BAJAJ

- Profile
- Bajaj Intro
- Company History
- Timeline of new releases
3.
4.

OBJECTIVES
RESEARCH METHODOLOGY

23

- Data Source
- Research Approach
- Sampling unit
- Data Completion and Analysis

5. ANALYSIS AND INTERPRETATION

27

6. LIMITATION OF RESEARCH STUDY

25

7. CONCLUSION

39

8. LIMITATION

9.

BIBLIOGRAPHY

43

10.

ANNEXURE

45

HISTORY OF HERO HONDA

India has the largest number of two wheelers in the world with 41.6 million vehicles.
India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was
the second largest two wheeler manufacturer in the world starting in the 1950s with the birth of
Automobile Products of India (API) that manufactured scooters. API manufactured the
Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn
of the century from its association with Piaggio of Italy (manufacturer of Vespa).
The license raj that existed between the1940s to1980s in India, did not allow foreign companies
to enter the market and imports were tightly controlled. This regulatory maze, before the
economic liberalization, made business easier for local players to have a sellers market.
Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a dispatch department. By the year
1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters.
The motorcycle segment had the same long wait times with three manufacturers; Royal Enfield,
Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at
that time and took the higher end of the market but, there was little competition for their
customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively.
In the mid-1980s, the Indian government regulations changed and permitted foreign companies
to enter the Indian market through minority joint ventures. The two-wheeler market changed

with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic
Honda. The entry of these foreign companies changed the Indian market dynamics from the
supply side to the demand side. With a larger selection of two-wheelers on the Indian market,
consumers started to gain influence over the products they bought and raised higher customer
expectations. The industry produced more models, styling options, prices, and different fuel
efficiencies. The foreign companies new technologies helped make the products more reliable
and with better quality. Indian companies had to change to keep up with their global
counterparts.

Hero Honda Motorcycle Ltd.

Type
Founded
Headquarters

Public company BSE:HEROHONDA M

January 19, 1984 in Gurgaon, Haryana, India
Haryana, India
Om Prakash Munjal, Founder
Mr.

Key people

Brijmohan

Lall

Munjal,

Chairman

Mr. Toshiaki Nakagawa, Joint Managing

Director

Industry
Products
Revenue
Website

Mr. Pawan Munjal, Managing Director

Automotive
Motorcycles, Scooters
U$ 2.8 billion
http://www.herohonda.com/site/home/home.asp

HERO HONDA HEADQUARTERS

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero
Honda is a joint venture that began in 1984 between the Hero group of India and Honda from
Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001,
when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's
largest selling motorcycle[citation needed]. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana,
India. It specializes in dual use motorcycles that are low powered but very fuel efficient.

Contents

Models

Company Profile
o

Just-in-Time

Ancillarisation

Dealer Network

Financial Planning

Quality

Diversification

External links

Bikes

Hero Honda Splendor Plus

Hero Honda Passion Plus

Hero Honda Karizma

Hero Honda CBZ

Hero Honda Super Splendor

Hero Honda CD Dawn

Hero Honda CD Deluxe

Hero Honda Achiever

Hero Honda Glamour

Hero Honda Ambition

Hero Honda "Splendor" Model

Company Profile

Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagship
company Hero Cycles. The two-wheeler manufacturing business of bicycle components had
originally started in the 1940s and turned into the worlds largest bicycle manufacturer today.
Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel,
make free wheel bicycle critical components and have diversified into different ventures like
product design. The Hero Group philosophy is: To provide excellent transportation to the
common man at easily affordable prices and to provide total satisfaction in all its spheres of
activity. The Hero group vision is to build long lasting relationships with everyone (customers,
workers, dealers and vendors). The Hero Group has a passion for setting higher standards and
Engineering Satisfaction is the prime motivation, way of life and work culture of the Group.

10

In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero
Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor
Company Ltd. (HMC). HHM Mission Statement is: We, at Hero Honda, are continuously
striving for synergy between technology, systems, and human resources to provide products and
services that meet the quality, performance, and price aspirations of our customers. While doing
so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate
products and processes, and develop teams that keep the momentum going to take the company
to excellence in the new millennium. This alliance became one of the most successful joint
ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda
Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to
decrease by 30 percent that same day. Munjal had to come up with some new strategic decisions
as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for
HHM.
== Growth == The business growth of Hero Honda has been phenomenal throughout its early
days. The Munjal family started a modest business of bicycle components. Hero Group expanded
so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today
Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the
record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors
Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture
motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million
bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its
model PLEASURE mainly aimed at girls. The Hero Group has done business differently right
from the start and that is what has helped them to achieve break-through in the competitive two-

11

wheeler market. The Group's low key, but focused, style of management has earned the company
plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition.
The growth of the Group through the years has been influenced by a number of factors:

Just-in-Time
The Hero Group through the Hero Cycles Division was the first to introduce the concept of justin-time inventory. The Group boasts of superb operational efficiencies. Every assembly line
worker operates two machines simultaneously to save time and improve productivity. The fact
that most of the machines are either developed or fabricated in-house, has resulted in low
inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working
since the beginning of production in the unit and is functional even till date.. This is the Japanese
style of production and in India; Hero is probably the only company to have mastered the art of
the just-in-time inventory principle.

Ancillarisation
An integral part of the Group strategy of doing business differently was providing support to
ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's
requirements and also a large number of other vendors, which include some of the better known
companies in the automotive segment. Employee Policy:
Another Striking feature within the Hero Group is the commitment and dedication of its workers.
There is no organized labor union and family members of employees find ready employment
12

within Hero. The philosophy with regard to labor management is "Hero is growing, grow with
Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities,
further ahead of the industry norms. Long before other companies did so, Hero was giving its
employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel
Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but
also for the immediate family members.

Dealer Network
The relationship of Hero Group with their dealers is unique in its closeness. The dealers are
considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000
outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all
the corners of the country, visiting dealers and send back daily postcards with information on the
stock position that day, turnover, fresh purchases, anticipated demand and also competitor action
in the region. The manufacturing units have a separate department to handle dealer complaints
and problems and the first response is always given in 24 hours.

Financial Planning
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on
technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the
highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on
financial and raw material management and a low employee turnover.

Quality

13

Quality at Hero is attained not just by modern plants and equipment and through latest
technology, but by enforcing a strict discipline. At the Group factories, attaining quality
standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation
of the latest technology with deep-rooted experience derived from nearly four decades of hard
labor. It is an attitude that masters the challenge of growth and change - change in consumers'
perceptions about products and new aspirations arising from a new generation of buyers.
Constant technology up gradation ensures that the Group stays in the global mainstream and
maintains its competitive edge. With each of its foreign collaborations, the Group goes onto
strengthen its quality measures as per the book. The Group also employs the services of
independent experts from around the world to assist in new design and production processes.

Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at
diversification. A considerable level of backward integration in its manufacturing activities has
been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling
Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited
amongst other component-manufacturing units.
Then there were the expansion into the automotive segment with the setting up of Majestic Auto
Limited, where the first indigenously designed moped, Hero Majestic, went into commercial
production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with
global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in
1984 to manufacture 100 cc motorcycles.

14

The Hero Group also took a venture into other segments like exports, financial services,
information technology, which includes customer response services and software development.
Further expansion is expected in the areas of Insurance and Telecommunication.
The Hero Group's phenomenal growth is the result of constant innovations, a close watch on
costs and the dynamic leadership of the Group Chairman, characterized by a culture of
entrepreneurship, of right attitudes and building stronger relationships with investors, partners,
vendors and dealers and customers

15

HISTORY OF BAJAJ
Bajaj Auto limited is one of the largest two wheeler manufacturing company in
India apart from producing two wheelers they also manufacture three wheelers. The
company had started way back in 1945. Initially it used to import the two wheelers from
outside, but from 1959 it started manufacturing of two wheelers in the country. By the
year 1970 Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor
cycles have become an integral part of the Indian milieu and over the years have come
to represent the aspirations of modern India. Bajaj Auto also has a technical tie up with
Kawasaki heavy industries of Japan to produce the latest motorcycles in India which are
of world class quality The Bajaj Kawasaki eliminator has emerged straight out of the
drawing board of Kawasaki heavy industries. The core brand values of Bajaj Auto
limited includes Learning, Innovation, Perfection, Speed and Transparency.
Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in
Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales
are backed by a network of after sales service and maintenance work shops all over the
country.
Bajaj Auto has products which cater to every segment of the Indian two wheeler market
Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj
Discover 125 offers the consumer a great performance without making a big hole in the
pocket.

16

PROFILE:
Founder

Jamnalal Bajaj

Year of Establishment

1926

Industry

Automotive - Two & Three Wheelers

Business Group

The Bajaj Group

Listings & its codes

BSE Code: 500490; NSE - Code: BAJAJAUTO

Presence

Distribution
Dominant
Columbia,

network
presence

covers
in

Guatemala,

Sri
Peru,

50

Lanka,
Egypt,

countries.
Bangladesh,
Iran

and

Indonesia.
Joint Venture

Kawasaki Heavy Industries of Japan

Registered & Head Office

Akurdi
Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398

Works

Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad 431136

Chakan Industrial Area, Chakan, Pune 411501

E-mail

rahulbajaj@bajajauto.co.in

Website

www.bajajauto.com

Bajaj Autos Ltd.

Bajaj Auto Limited

17

Type
Founded
Headquarters

Public
1945
Pune, India

Key people

Rahul Bajaj (Chairman)

Rs. 1,01,063 billion (2006) or USD 1.87

Revenue
billion
Rs. 17,016 billion
???
www.bajajauto.com

Net income
Employees
Website

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th
largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near
Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes motorscooters, motorcycles and
the auto rickshaw.

Contents

Company's history
o

Timeline of new releases

Scooters

Motorcycles

Upcoming Models

New Image

Forbes Global 2000 Ranking - 2005

18

External links

References

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.

19

Timeline of new releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak

1976 - Bajaj Super

1977 - Rear engine Autorickshaw

1981 - Bajaj M-50

1986 - Bajaj M-80, Kawasaki Bajaj KB100

1990 - Bajaj Sunny

1994 - Bajaj Classic

1995 - Bajaj Super Excel

1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw

1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)

2000 - Bajaj Saffire

2001 - Eliminator, Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

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

2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover

2006 - Bajaj Platina

2007 - Bajaj Pulsar-200

Some of the models that Bajaj makes (or has made) are:

20

Scooters
o

Bajaj Sunny

Bajaj Chetak

Bajaj Cub

Bajaj Super

Bajaj Wave

Bajaj Legend

Motorcycles
o

Kawasaki Eliminator

Bajaj Pulsar

Bajaj Kawasaki Wind 125

Bajaj Boxer

Bajaj CT 100

Bajaj Platina

Bajaj Caliber

Bajaj Discover

Bajaj Avenger

Upcoming Models

Bajaj Pulsar 220 DTS-Fi

21

Bajaj Krystal

Bajaj Blade

Bajaj Sonic

New Image
The company, over the last decade has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer, product range ranging from Scooterettes to
Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after successful
introduction of a few models in the motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

OBJECTIVES:1. To know the market share of Bajaj & Hero Honda.

2. To know the views of customers regarding bikes.

22

3. To determine the level of customers satisfaction regarding bikes.

4. To determine the factors influencing the choice of customers regarding bikes.

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

It is well known fact that the most important step in marketing research process is to
define the problem. Choose for investigation because a problem well defined is half solved. That

23

was the reason that at most care was taken while defining various parameters of the problem.
After giving through brain storming session, objectives were selected and the set on the base of
these objectives. A questionnaire was designed major emphasis of which was gathering new
ideas or insight so as to determine and bind out solution to the problems.

DATA SOURCE

Research included gathering both Primary and Secondary data. Primary data is the first
hand data, which are selected a fresh and thus happen to be original in character. Primary Data
was crucial to know various customers and past consumer views about bikes and to calculate the
market share of this brand in regards to other brands.
Secondary data are those which has been collected by some one else and which already
have been passed through statistical process. Secondary data has been taken from internet,
newspaper, magazines and companies web sites.

RESEARCH APPROACH

The research approach was used survey method which is a widely used method for data
collection and best suited for descriptive type of research survey includes research instrument
like questionnaire which can be structured and unstructured. Target population is well identified
and various methods like personal interviews and telephone interviews are employed.

SAMPLING UNIT

24

It gives the target population that will be sampled. This research was carried in
chandigarh

These were 100 respondents.

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were
presented followed by analysis and interpretation to reach certain conclusions.

LIMITATIONS
5. Research work was carried out in chandigarh only the finding may not be applicable to the
other parts of the country because of social and cultural differences.

25

6. The sample was collected using connivance-sampling techniques. As such result may not
give an exact representation of the population.

7. Shortage of time is also reason for incomprehensiveness.

8. The views of the people are biased therefore it doesnt reflect true picture.

ANALYSIS AND INTERPRETATION

Q1) Which bike do you have?

Hero Honda
Bajaj
Any other

47
38
15

26

Q2) Which Model do you Have?

Hero Honda
Splender
Passion
Karizma
Any other

21
13
7
6

Bajaj
CT 100
Discover
Pulsar
Any other

7
12
11
8

27

Q3) In which family Income level do you Fall?

100000-200000
200000-300000
300000-400000
above 400000

22
45
23
10

28

Q4) For how long do you own a bike?

0-1 year
1-2 year
2-3 year
above 3 year

34
29
26
11

29

Q5) For what purpose do you use your Motor Bike?

Office Purpose
Personal purpose
Joy Purpose
Other

Hero Honda
9
13
19
6

Bajaj
4
15
16
3

30

Q6) How do you come to know about this Motor Bike?

Hero Honda
4

Bajaj
2

Television

23

16

Magazine

18

19

Newspaper

Friends &
Relative

31

Q7) Does Advertisement Influence your decision

in choosing a Motor Bike?
Yes
No
Cant say

87%
5%
8%

32

Q8) Do you have full knowledge about Bikes before

buying?
Hero Honda

Bajaj

Yes

25

23

No

22

15

33

Q9) Which Factor below Influence your decision?

Price
Mileage
Quality
Resale Value
Status symbol

Hero Honda

Bajaj

72%
78%
65%
40%
10%

78%
64%
48%
28%
7%

34

Q10) How would you rate the following factors of Bikes

with respect to different company?

Mileage
Price
Pick up
Maintenance
Look & Shape
Brand Image

Hero Honda

Bajaj

74%
68%
70%
58%
85%
53%

72%
65%
80%
62%
80%
55%

35

Q11) If new Bike with good features comes in, then would
you like to change your bike?

Yes
No
Cant say

Hero Honda

Bajaj

19
17
11

21
14
3

36

37

Conclusion

38

1.

Most of the Pulsar, CBZ & Karizma are purchased by young generation 18 to
30 because they prefer stylish looks and rest of the models of Hero Honda are
purchased more by daily users who needs more average of bikes than looks.

2.

Hero Honda is considered to be most fuel-efficient bike on Indian roads.

3.

Service & Spare parts are available throughout India in local markets also.

4.

While buying a motorcycle, economy is the main consideration in form of

maintenance cost, fuel efficiency.

5.

Majority of the respondent had bought their motorcycle more than 3 years.

39

RECOMMENDATIONS

1.

Bajaj should introduce some more models having more engine power.

2.

Hero Honda should think about fuel efficiency in case of upper segment bikes.

3.

More service centers should be opened.

4.

Maintenance cost and the availability of the spare parts should also be given
due importance.

40

5.

They also introduce some good finance/discount schemes for students.

6.

The price should be economic.

41

BIBLIOGRAPHY

1. www.herohonda.com

2. www.google.com

3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

42

43

QUESTIONNAIRE

NAME: -

CONTACT NO .

AGE:-

15-20

20-25

25.30

Above 30

OCCUPATION:-

Businessman

Employee

Student

Other

Q1) Which Bike do you have?

Hero Honda

Bajaj

Any Other

Q2) Which Model do you have?

Hero Honda: -

Splendor

Passion

44

Bajaj: -

Karizma

Other

CT 100

Discover

Pulsar

Other

Q3) In which Family Income do you Fall?

100000-200000

200000-300000

300000-400000

Above 400000

Q4) For how long do you own a Bike?

0-1 year

1-2 year

2-3 year

above 3 years

Q5) For what purpose do you use your Motor Bike?

Office Purpose

Personal Purpose

45

Joy Purpose

Other

Q6) How do you come to know about this Motor Bike?

Newspaper

Television

Magazines

Friends/Relatives

Q7) Does Advertisement Influence your decision in choosing a Motor Bike?

Yes

No

Cant say

Q8) Do you have full knowledge about Bikes before buying?

Yes

No

Q9) Which factor below influence your decision?

Price

Mileage

Resale Value

Status Symbol

Quality

Q10) How would you rate the following factors of bikes with respect to different companies?
Hero Honda

Bajaj

46

Mileage

Price

Pick up

Maintenance

Look/Shape

Brand Image

Q11) In new bike with good feature comes in, then would you like to change your bikes?

Yes

No

Cant say

Q12) Any Suggestions for Company

Date:

(Signature)

47

48