RESEARCH PROJECT REPORT

ON

COMPARATIVE ANALYSIS OF MARKETING STRATEGIES OF

BAJAJ V/S HERO HONDA IN TWO WHEELER SEGMENT

UNDER THE GUIDANCE OF

MS.SUJATA SHUKLA

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF MASTER

OF BUSINESS ADMINISTRATION DEGREE FROM DR. A P J ABDUL KALAM
TECHNICAL UNIVERSITY, LUCKNOW, BATCH: 2017-2019.

BY

AZIZUR RAHAMAN

Roll No.1706170009

SHERWOOD COLLEGE OF MANAGEMENT

2017-2019

1
 PREFACE

The MBA program well-structured and integrated course of business strategies. In every

professional course training is an important factor. The objective of practical training is to

develop skill in student by supplement to the theoretical study of business management in

general. Industrial training helps to gain real life knowledge about the industrial

environment and business practice.

Professors give us theoretical knowledge of various subject in the college but we

practically exposed of such subjects when we get the training in the organization. During

the whole training I got a lot of experience and came to know about the management.

Practices in real that how it differ from those of theoretical knowledge and the practically

in the real life.

ACKNOWLEDGEMENT

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 The research on “Comparative Study between Bajaj and Hero
Honda” has been given to me as part of the curriculum in 2-Years Masters
Degree in Business Administration.
I have tried my best to present this information as clearly as possible
using basic terms that I hope will be comprehended by the widest spectrum
of researchers, analysts and students for further studies.
I have completed this study under the able guidance and supervision
of Ms Sujata Shukla; I will be failed in my duty if I do not acknowledge
the esteemed scholarly guidance, assistance and knowledge. I have received
from them towards fruitful and timely completion of this work.
Mere acknowledgement may not redeem the debt I owe to my parents for
their direct/indirect support during the entire course of this project.
I also thankful to my friend who helped me a lot in the completion of
this project.

Azizur Rahman

OBJECTIVES:-

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

2. To know the perception of customers regarding bikes.

3. To determine the customers satisfaction regarding bikes.

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

bikes.

INDEX

Sr No. Particulars Page no

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1. OBJECTIVES 6

2. HISTORY OF BAJAJ 7
- Profile
- Bajaj Intro
- Company History
- Timeline of new releases

3. HISTORY OF HERO HONDA 14

- Company Profile

4. RESEARCH METHODOLOGY 23
- Data Source
- Research Approach
- Sampling unit
- Data Completion and Analysis
- Scope

5. LIMITATION OF RESEARCH STUDY 25

6. ANALYSIS AND INTERPRETATION 27

7. CONCLUSION 39

8. RECOMMENDATION 41

9. BIBLIOGRAPHY 43

Chapter –I
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INDUSTRY AND COMPANY PROFILE

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based
in New Delhi, India. The company is the largest two-wheeler manufacturer in the world, and also in

India, where it has a market share of about 46% in the two-wheeler category. The 2006 Forbes list of the
200 World's Most Respected Companies has Hero Honda Motors ranked at #108. On 31 March 2013,
the market capitalization of the company was ₹30,800 crore (US$4.3 billion).

Hero Honda started its operations in 1984 as a joint venture between Hero Cycles (sometimes called
Hero Group, not to be confused with the Hero Group food company of Switzerland) of India
and Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought
the shares held by Honda.Hero MotoCorp approved a proposal to merge the investment arm of its parent
Hero Investment Pvt. Ltd. with the automaker. This decision came 18 months after its split from Hero
Honda.

The founder of Hero Group, Dr. Brijmohan Lall Munjal,(1923-2015) was born in Kamalia (now
part of Pakistan). He and his family relocated to Ludhiana and set up their first venture called
Hero Cycles which made bicycles. By 1975, they became the largest bi-cycle manufacturers in
India. They grew by setting up dealer networks through family members and associates. The joint
venture with Honda helped them become the largest two-wheeler manufacturer in the world.

"Hero" is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A
joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero
Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in

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the Company. Differences of opinion started a few years before the split due to Honda’s refusal to
provide technology free despite a 10-year tie-up that was to end only by 2014. Honda also refused
to merge the Joint venture firms' spare parts business with Hero Motorcycle and Scooters India
Ltd.

The company is presently headed by Pawan Munjal, Chairman, Managing Director & CEO.
Vikram Kasbekar, Director and Head of Operations; Dr Markus Braunsperger, Chief Technology
Officer; Mr Ravi Sud, Senior Vice-President & Chief Financial Officer.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it'
that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since
inception. In 2001, the company became the second largest two-wheeler manufacturing company in
India and globally. It maintains global industry leadership to date. The technology in the bikes of Hero
Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese
counterpart Honda.

TERMINATION OF HONDA JOINT VENTURE

By December 2010, the board of directors of the Hero Honda Group had decided to terminate
the joint venture between Hero Group of India and Honda of Japan in a phased manner. The
Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint
venture Hero Group could not export to international markets (except Nepal, Bangladesh and Sri
Lanka) and the termination would mean that Hero Group could now export. From the beginning,
the Hero Group rely on their Japanese partner Honda for the technology in their bikes.

The Japanese auto maker will exit the joint venture through a series of offmarket transactions by
giving the Munjal family—which held a 26% stake in the company—an additional 26%. Honda,
which also has an independent fully owned two-wheeler subsidiary—Honda Motorcycle and
Scooter India (HMSI)—will exit Hero Honda at a discount and get over ₹6,400 crore for its
stake. The discount will be between 30% and 50% to the current value of Honda's stake as per
the price of the stock after the market closed on 16 December 2010.

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The rising differences between the two partners gradually emerged as an irritant. Differences had
been brewing for a few years before the split over a variety of issues, ranging from Honda's
reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up
that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the
Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly
managed by the Munjal family) to merge the company's spare parts business with Honda's new
fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by
Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle (SPV)
to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would
eventually be thrown open for private equity participation, and those in the fray include Warburg
Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Formation of Hero MotoCorp

The name of the company was changed from Hero Honda Motors Limited to Hero MotoCorp
Limited on 29 July 2011. The new brand identity and logo of Hero MotoCorp were developed by
the British firm Wolff Olins. The logo was revealed on 9 August 2011 in London, to coincide
with the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any
vendor for its components instead of just Honda-approved vendors.

On 21 April 2014, Hero MotoCorp announced their plan on a ₹254 crore (US$35 million) joint
venture with Bangladesh's Nitol Niloy Group in the next five years to set up manufacturing plant
in Bangladesh. The plant started production in 2017. Hero MotoCorp owns the 55% of the
manufacturing plant and rest 45% is owned by Niloy Motors(A subsidiary of Nitol-Niloy
Group) also hero updated its 100cc engine range in 2014 for 110cc bikes except hero dawn.

EQUITY INVESTMENTS

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In July 2013, HMC acquired 49.2% shareholding in Erik Buell Racing, a motorcycle
sport company which produced street and racing motorcycles based in East Troy, Wisconsin,
United States. EBR filed for bankruptcy in 2015 and Hero Motocorp proceed to acquire certain
assets for ₹18.2 crore (US$2.5 million).
HMC invested US$ 30.5 million (Rs. 205 crore) as Series B round of funding in October 2016
and gained a 32.31% stake in Ather Energy, a startup company manufacturing electric scooters.
It invested a further US$ 19 million (Rs. 130 crore) in 2018.

OPERATIONS
Hero MotoCorp has five manufacturing facilities based at Dharuhera, Gurgaon, Neemrana,
Haridwar and Halol under Green Field stage. These plants together have a production capacity of
76 lakh+ 2-wheelers per year. Hero MotoCorp has a sales and service network with over 6,000
dealerships and service points across India. It has a customer loyalty program since 2000, called
the Hero Honda Passport Program which is now known as Hero GoodLife Program.

It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal Showa,
AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a
majority of its components.

The company has a stated aim of achieving revenues of ₹64,000 crore (US$8.9 billion) and
volumes of 10 lakh two-wheelers by 2016–17. This in conjunction with new countries where
they can now market their two-wheelers following the disengagement from Honda. Hero
MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they
expected to launch sales in Nigeria by end-2011 or early-2012.

COMPANY PERFORMANCE

The company has sold over 7 crore 2-wheelers since its inception in 1984 till March 2013. It sold
60.7 lakh 2-wheelers in 2012, out of which 55 lakh were motorcycles. Hero Motocorp sells more
two wheelers than the second, third and fourth placed two-wheeler companies put together. Its
most popular bike Hero Honda Splendor sells more than ten lakh units per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than 61 lakh
unit sales. By selling 6,25,000 units in the month of October, it became the first-ever
manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say

9
in the festive season, the company sold more than 16 lakh units, while in non festive time in
April–May 2013, it managed to sell out quite good numbers of units—11 lakh

LISTING AND SHAREHOLDING

The equity shares of Hero Motocorp are listed on the Bombay Stock Exchange,[28] where it is a
constituent of the BSE SENSEX index,[29] and the National Stock Exchange of India,[30] where it
is a constituent of the S&P CNX Nifty.[31]

As on 31 December 2013, the promoters Munjal Family held around 40% equity shares in Hero
Motocorp. Over 61,000 individual shareholders hold approx. 7.44% of its shares.[32]Foreign
Institutional Investors hold approx. 30% shares in the company.

EMPLOYEES

As on 31 March 2014, the company had 6,782 employees, out of which 66 were women (1.1%).
It also had approx. 13,800 temporary employees on that date. The company had an attrition rate
of 5.1% in the FY 2012-13. The company spent ₹821 crore (US$110 million) on employee
benefits during the FY 2012-13.

Awards and recognition

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 The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the
7th position among the most trusted brands in India.
 It received the 'Best value for Money Bike Maker' and 'Best Advertising' in Two Wheelers
Category at the Auto India Best Brand Awards 2012.

INITIATIVES

The company started Raman Kant Munjal Foundation (RKMF), in 1992 when it was
known as Hero Honda Motors Ltd., that looks after:

 Raman Munjal Vidya Mandir (an educational institution)

 Raman Munjal Memorial Hospital
 BML Munjal University

During the financial year, the company spent ₹1.4 crore on corporate social
responsibility.

SPONSORSHIP

Currently a Sponsor of the Caribbean Premier League T20 Cricket Franchise 2018, Hero also
sponsors both of India's top-tier men's football leagues, the I-League and the Indian Super
League, men's second tier league I-League 2nd division, women's top-tier league Indian
Women's League and also the domestic football tournament Super Cup.

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 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

12
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.

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 network covers 50 countries.
Dominant presence in Sri Lanka, Bangladesh,
Columbia, Guatemala, Peru, Egypt, 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

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  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

Type Public
Founded 1945
Headquar
Pune, India

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 Key peopl
Rahul Bajaj (Chairman)
Revenue Rs. 1,01,063 billion (2006) or USD 1.87 billion
Net
Rs. 17,016 billion
income
Employee
???
Website www.bajajauto.com

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
 1 Company's history
o 1.1 Timeline of new
releases
 2 Scooters
 3 Motorcycles
 4 Upcoming Models
 5 New Image
 6 Forbes Global 2000 Ranking -
2005
 7 External links

 8 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.

Timeline of new releases

 1971 - three-wheeler goods carrier

 1972 - Bajaj Chetak

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  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:

Scooters
o Bajaj Sunny
o Bajaj Chetak
o Bajaj Cub
o Bajaj Super
o Bajaj Wave
o Bajaj Legend

Motorcycles
o Kawasaki Eliminator
o Bajaj Pulsar
o Bajaj Kawasaki Wind 125
o Bajaj Boxer
o Bajaj CT 100
o Bajaj Platina
o Bajaj Caliber
o Bajaj Discover
o Bajaj Avenger

Upcoming Models
 Bajaj Pulsar 220 DTS-Fi

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  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.

Chapter –II I
Review of literature

17
Chapter –III

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 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 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.

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SAMPLING UNIT

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.

SCOPE

My project was based on the Comparative Study of Bajaj V/S Hero Honda and
data was taken in the Chandigarh only.

LIMITATIONS

1. 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.

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

3. Shortage of time is also reason for incomprehensiveness.

4. The views of the people are biased therefore it doesn’t reflect true picture.

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 Chapter –IV
ANALYSIS AND INTERPRETATION

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Chapter –V
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Conclusion

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.

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

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.

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

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

6. The price should be economic.

BIBLIOGRAPHY

1. www.herocorp.com

2. www.google.com

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3. www.bajaj.com

4. www.twowheeler.com

5. www.extrememachines.com

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