27797997 two wheeler automobile marketing strategy

7/27/2019 27797997 Two Wheeler Automobile Marketing Strategy

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INTRODUCTION

Consumers play an important role in the economy. They from the largest

economic group in any economy. They are indeed considered the pillars of the

economy. Consumer behavior (CB) is at the core of the market behavior. CB

in relation to the products bought and sought factors like personality,

perception, attitude and reading on the one hand and the product, price, physical

attributes adjusting and social influence on the other, shape the behavior of

consumers.

Profile of the Automobile Industry-India

The automobile industry (AI) is a leading sector in economic development: its

most obvious benefit is its input in to the motor transport industry viz in the

ferrying of goods and people from one place to another in a more flexible and

very often more efficient manner than by other forms of transport. Since time

immemorial, man has been seeking means to transport himself and his

belongings and produce from one place to another in his quest for better and

cheap means of transportation or movement of persons and things. Since then,

different kinds and models of motorized vehicles swing the varied requirements

of diverse users are produced by many manufacturers throughout the world.


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Two Wheeler IndustryINDIA

India is the second largest manufacturers of two wheelers (TW) in the world. It

stands next to Japan and China in terms of the number of TW produced and sold

respectively. India is one of the very few countries manufacturing three

wheelers in the world. It is the worlds largest manufacturer and seller of three-

wheelers. Indias automobile sector consists of the passenger cars, utility

vehicles, and commercial vehicle, TW and tractors segment. The total market

size of the auto sector in India is approximately Rs.540 billion and has been

growing at around eight per cent per annum for the last few years. The growth

in automobile sales has been impressive for the past ten years since

liberalization began. The AI is fairly concentrated, as in most of the segments

two to three players have cornered a major chunk of the total sales. For

instance, in the TWs segment, the sales volume of Hero Honda (HH), Bajaj

(BAL) and TVS Motors constitute around 80 per cent of the total sales.


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OBJECTIVE OF THE PROJECT:-

The main objectives of the Project study are:

Detailed analysis of Automobile industry which is gearing towards international

standards.

To conduct market research with regard to two-wheeler automobile industry and

understand its marketing strategies.

Analyze the impact of qualitative factors on industrys and companys prospects

Comparative analysis of major tough competitor.

To understand the current trends in two-wheeler automobile industry.


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INTRODUCTION TO INDIAN AUTOMOBILE

INDUSTRY

Automobile is one of the largest industries in 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 last decade, well directed efforts have been made to provide

a new look to the automobile policy for realizing the sector's full potential for the economy.

Aggressive marketing by the auto finance companies have also played a significant role in

boosting automobile demand, especially from the population in the middle income group.

A Nations economy is well known from its transport system. For instant and rapid growth ineconomy, a well-developed and well-networked transportation system is essential. As India's

transport network is developing at a fast pace, Indian Automobile Industry is growing too.

Also, the Automobile industry has strong backward and forward linkages and hence provides

employment to a large section of the population. Thus the role of Automobile Industry is very

essential in Indian economy. Various types of vehicles are manufactured by the Automobile

Industry. Indian Automobile Industry includes the manufacturing of trucks, buses, passenger

cars, defence vehicles, two-wheelers.

The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle &

Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc.

The automobile industry in the country is one of the key sectors of the economy in terms of

the employment opportunities that it offers. The industry directly employs close to around 0.2

million people and indirectly employs around 10 million people. The prospects of the

industry also has a bearing on the auto-component industry which is also a major sector in the

Indian economy directly employing 0.25 million people.


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OVERVIEW OF TWO WHEELER SECTOR

Two Wheeler Industry

Indian two -wheeler contributes the largest volumes amongst all the segments in automobile

industry. This segment can be broadly categorized into 3 sub-segments viz.; scooters,

motorcycles and mopeds. In the last four to five years, the two-wheeler market has witnessed

a marked shift towards motorcycles at the expense of scooters. In the rural areas, consumers

have come to prefer sturdier bikes to withstand the bad road conditions. In the process the

share of motorcycle segment has grown from 48% to 58%, the share of scooters declined

drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during

the year 2008-09. The Euro emission norms effective from April 2000 led to the existing

players in the two- stroke segment to install catalytic converters. All the new models are now

being replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced from

32% to 24%, resulting in price reduction, which has aided in propelling the demand for

motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of

35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle

has been taking away the share of scooters and mopeds in a 4.3 million two-wheeler market

and surging ahead with its market share of 68%. The increasing demand from semi-urban and

rural segments may have caused this positive shift towards motorcycles. Also, easy credit

coupled with low interest rate regime, constrained personal transport, increasing income

levels in middle class and higher aspirations of young people all seem to be the factors

responsible for such high growth in two-wheelers. The growth in two-wheelers has been

robust enough to counter the slowdown and other factors constraining the overall business

activity in the country. Also, rationalization of excise duty in the Union Budget 2002-03 had

a positive impact on the demand for motorcycles. We also expect the motorcycles to continue

to lead the two-wheeler segment like in all other Asian countries. Available forecasts suggest

that this trend would continue for another couple of years and the industry would record

nearly double-digit average annual growth up to 2006.

During the year, there have been important developments in two-wheeler industry. The

competition has strengthened though there are hardly any new entrants into the industry.

There is an increasing emphasis on price and this has led to cost cutting efforts all across the


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industry, thereby, making the customer an ultimate beneficiary. The trend also saw

introduction of new motorcycles with capacity ranging from 100 to 180cc bikes. We

anticipate that many more new models will be launched during the year and provide

customers plenty of choice at competitive prices.

Businesses cannot consistently grow at 25-30 per cent. Each business has a tendency to taper

and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a

period of time is extremely healthy.

The TCS study rankings are conducted at the motorcycle segment-level to provide

comparisons among similar groups of motorcycles. Motorcycles ranking highest in their

respective segments for TCS are: Hero Honda CD100 SS (best standard motorcyclesegment); Hero Honda Splendor (best executive motorcycle segment); Bajaj Pulsar (best

premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle

segment).

The feeling of freedom and being one with the Nature comes only from riding a two wheeler.

Indians prefer the two wheelers because of their small manageable size, low maintenance,

and pricing and easy loan repayments. Indian streets are full of people of all age groups

riding a two wheeler. Motorized two wheelers are seen as a symbol of status by the populace.

Two wheelers in India are the second largest producer and manufacturer of two-wheelers in

the world. It stands next only to Japan and China in terms of the number of two-wheelers

produced and domestic sales respectively. Indian two-wheeler industry has got spectacular

growth in the last few years. Indian two-wheeler industry had a small beginning in the early

50's. The Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being scooters and

mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. In

the initial stages, the scooter segment was dominated by API; it was later overtaken by Bajaj

Auto. Although various government and private enterprises entered the fray for scooters, the

only new player that has lasted till today is LML.

The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc

bike. The two-wheeler market was opened to foreign competition in the mid-80s. And the

then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the

100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient


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low power bikes, demand swelled, resulting in Hero Honda - then the only producer of four

stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and

Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.

These two players initially started with assembly of CKD kits, and later on progressed to

indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought

in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.

The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new

entries and strictly controlled capacity expansion. The industry saw a sudden growth in the

80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn

vehicles in 1990.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a

decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.

Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.

Hero Honda showed a marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in fuel prices, high input costs

and reduced purchasing power due to significant rise in general price level and credit crunchin consumer financing. Factors like increased production in 1992, due to new entrants

coupled with the recession in the industry resulted in company either reporting losses or a fall

in profits.


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Two wheeler fleet composition in India:-


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STRUCTURE OF TWO WHEELER INDUSTRY

Mopeds:-

Over the last 15 years, mopeds contribution in overall 2-wheelers has declined significantly

and now it remains a marginal category with just one manufacturer for the product. Its

contribution in the 2-wheelers industry now stands at 5% and we expect that this segment

will continue to be marginalised. The only player in this segment is TVS Motor.

Scooters:-

Advent of fuel efficient motorcycles in the Indian 2-wheelers industry led to decline of

Scooters. However, over the last five years, it has made a recovery and is emerging as a niche

segment targeted towards women commuters. One of the reasons for this is the increasing

need of mobility for the women commuters especially in the urban areas is due to higher

number of college going girls and greater participation of women in urban work force. The

product itself has gone for a complete revamp and now this category mainly consists of

gearless products. This segment is now dominated by Japanese manufacturers with HMSI

having the leadership. HH, which is a late entrant in this segment, has also cornered a

sizeable market share in the scooter segment. Another development in this segment is the

launch of battery operated scooters. However, given the high replacement cost for the

batteries, this has remained a marginal segment.

Motor cycles and bikes:-

Executive Segment

Executive segment is the largest motorcycle segment and this is the stronghold of market

leader HH. Competitors have tried to challenge HH in this segment, however all such

challenges have fizzled out over time. With higher growth in economy segment, the

contribution of this segment had come below 50% in FY06. However over the last three

years, it has made a strong come back and now accounts for almost 60% of the motorcycle

share.


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Premium Segment

This segment was creation of HH with 'CBZ' And KARIZMA; however major boost to the

segment was given by BAJAJ through 'Pulsar' which has dominated the segment. HH has

remained a marginal player in this segment and one of the reasons for this is presence of

HMSI in this segment. This segment remains a small segment in the Indian market with

contribution of around 23% to the motorcycle industry. This is the performance segment and

customers pay a premium for the novelty. Hence constant upgradation in the product is a

requisite for success in this segment.

Usage Pattern of two-wheelers in India

Is quite different from other countries

Initial cost and fuel economy are highest priority.

Low maintenance costs are desired.

Small entrepreneurs and farmers conduct their business carrying loads.

Very limited usage for sports bike.

Indians prefer the two wheelers because of their small manageable size, low

maintenance, and pricing and easy loan repayments.


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Key players in the Two-wheeler industry:

Hero Honda motors ltd.

Bajaj auto ltd.

TVS motors company ltd.

Yamaha motors India

Honda motorcycle and scooters India

Motorcycles in India:

Bikes comprise a major segment of Indian two wheeler industry.


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Companies :

Hero Honda Motors Ltd (HHML )

Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero

Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. And

created the world's single largest two wheeler company and also one of the most successful

joint ventures worldwide. During the 80s, Hero Honda became the first company in India.Over 19 million Hero Honda two wheelers running on Indian roads today.

* Hero Honda CD Dawn

* Hero Honda CD Deluxe

* Hero Honda Glamour

* Hero Honda Glamour-Fi

* Hero Honda Karizma

* Hero Honda Passion Plus* Hero Honda Pleasure

* Hero Honda Super Splendor

* Hero Honda Splendor NXG

* Hero Honda CBZ X-Treme

Bajaj Auto Ltd Company:

Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the

name M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading

corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license

from the Government of India to manufacture two- and three-wheelers vehicles in 1959.

* Bajaj Avenger


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* Bajaj CT 100

* Bajaj Platina

* Bajaj Discover DTSi

* Bajaj Pulsar DTSi

* Bajaj Wave* Bajaj Wind 125

* Sonic DTSi

TVS Motor Company :

TVS Motors is the third largest company in the two-wheeler industry with a market share of

16%. Infect, it is the only Indian company without a foreign collaboration in the two-wheeler

industry. When the company opted out of the collaboration with Suzuki in 2002, many

believed that TVS was headed towards extinction. But the company proved the doomsayers

wrong and came out with a very successful `TVS Victor'. TVS Motors Ltd. originally

incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of

Japan, TVS was one of the leaders in two-wheeler industry.

* TVS Apache

* TVS Centra

* TVS Fiero* TVS Star

* TVS Victor

Yamaha Motor India:


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Yamaha Motor Corporation is the auto mobile company of Japan (1953) which works in

India since 1955 and providing latest technology in India from last two decades. Yamaha

Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor

corporation, Japan

* Yamaha CruxS

* Yamaha G5* Yamaha Gladiator

* Yamaha FZ 16

* Yamaha R15

* Yamaha Fazer

Honda motor:

Honda motors of Japan is not a new name in the two wheeler scenario in the country, they

were in a tie up with the Firodias owned Kinetic group. However in the late 90s they parted

ways after problems arose over issues like introduction of new models, advertising

expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of

Japan joined hands with the largest bicycle maker of India the Hero cycles to create Hero

Honda which in a couple of decades or so have gone on to become the single largest

motorcycle company in the world. Though Honda has come on its own on the Indian market

yet it will be providing technological support to Hero Honda for the next ten years. Thus

presenting a unique situation in which the company will be in direct competition with the

company which it has been associated for nearly two decades. Honda Motorcycles and

Scooters India limited, a 100% subsidiary of Honda motor company Japan eventually entered

the Indian market with Honda Unicorn in 2004.


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* Honda Unicorn

* Honda activa

Now further the marketing strategies of HERO HONDA and its competitor

BAJAJ will be analyzed.

Market share of two wheeler automobile

sector

35.60% 27.50%

16%

7%4%9.50%

Hero Honda

Bajaj Motors

TVS Motors

YamahaMotorsHonda Motors

Others


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HERO HONDA

The Company was Incorporated on 19th January,1984 at New Delhi as a joint

venture.

Today Hero Honda is the largest two-wheeler manufacturer in the world producing

more than 3 million units of two-wheeler per year.

The company's most popular model is the Hero Honda Splendour, which is the

world's largest-selling motorcycle.

Over 19 million Hero Honda two wheelers are on Indian roads today.

Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in100cc range.

During the fiscal year 2008-09, the company has sold 3.28 million bikes.

PRODUCT MIX

SCOOTER BIKE 100CC 125CC 150CC 220CC

PLEASURE CD 100

SPLENDOR

SPLENDOR+

PASSION

PASSION+

AMBITION

GLAMOR

CBZ

CBZ XTREME

KARIZMA


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BAJAJ (COMPETITOR)

Established in 1945.

Started production of scooters in 1961 and became first two wheeler manufacturingcompany of India.

Bajaj Auto, is ranked as the world's fourth largest two and three- wheeler

manufacturer.

Bajaj Auto is Indias largest exporter of two wheelers.

During 2008-09, the company exported 772,519 two and three-wheelers recording a

growth of 25 percent over 2007-08.

Exports now constitute 37 per cent in volume terms and 35 per cent IN value of net

sales.

PRODUCT MIX

100CC 125CC 135CC 150CC 180CC 200CC 220CC

BAJAJ CT

100,

BAJAJ

PLTINIA,

BAJAJ

WAVE

DISCOVER,

BAJAJ

WIND,

BAJAJ XCD

PULSAR-135 PULSAR-150 PULSAR-

180,

AVENGER

PULSAR-200 PULSAR-

220


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4 Ps OF MARKETING OF HERO HONDA :-

PRODUCT

Hero Honda, which has a technology tie-up with Japan's Honda Motors, was currently

discussing the feasibility of manufacturing scooters for the Indian market, Mr. Munjal said.

However, the company has a binding clause with Honda's scooter manufacturing Indian

subsidiary, preventing it from making scooters till 2004.

Hero Honda Motors, India's largest motorcycle company, has launched the premium segment

223cc motorcycle Karizma priced at Rs 79,000 (ex-showroom, Delhi). Many of the products

which the company has started with have been phased off. Now the existing products are

Karizma, Ambition, CBZ, Splendor, Splendor+, Passion, Passion Plus, CD 100 SS, CD 100

and CD Dawn.

The TCS study examines customer evaluations at three distinct ownership periods: 1 to 6

months, 7 to 18 months, and 25 to 36 months. This helps in understanding the differences in

satisfaction during initial ownership, in-warranty and post-warranty ownership periods.

Satisfaction ratings decline as the length of vehicle ownership increases. However, Hero

Honda Splendor is among the few models to maintain consistency across the three ownership

periods.

PRICING

Pricing is a important component of marketing mix of the firm. Determining the prices of

different products of a firm is very difficult task of the marketing manager. Price denotes

money value of a product. If represent the amount of money for which a product can be

exchange. In other words, prices represents the money which the buyer pays to the seller for a

product price represent the exchange value of goods and services in terms of money. Price is

all around.

Price factor has very well been touched by the manufacturers. The pricing strategy of the

company is very set. They price their product according to the cost of production and also by


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keeping an eye on the price of the competitors of that segment and demand of the product in

the market.

A pricing strategy that ensured an average manufacturer margin that game dealer an adequate

return and created a reputation with consumers like a company selling a good quality

product at a reasonable price. Industry focus themselves the low cost producer with good

quality and aimed to maintain the price advantage in every market of two wheelers.

Hero Honda group ensures an easily affordable pricing through excellent transportation to

common man. It fixes customer centric pricing that provide customer total satisfaction.

Hero Hondas pricing objectives are: List price, Discount, Financing schemes, Credit terms,

and Maximize profits

Hero Honda group ensures an easily affordable pricing through excellent transportation to

common man. It fixes customer centric pricing that provides the customer with total

satisfaction.

PLACE

CHANNELS OF DISTRIBUTION:

As a company, dealers play a major role in serving customers, while growing and sustaining

markets. Hero Honda has a network of more than 3500 strong and dedicated Authorized

dealers. A network that has helped Hero Hondas name and its promise of reliable quality to

every part of the country. The power of this highly efficient and motivated network goes a

long way to create goodwill for Hero Honda brand among countless consumers besidescreating availability and after sales services.

The channel of distribution is a direct dealer network. A direct dealer is a dealer who is

authorized to purchase the product directly from the company and sell.


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PHYSICAL DISTRIBUTION:

Hero Honda has more than 3500 showrooms in India. Some of the Authorized dealers of

Hero Honda Karizma, in and around Bombay, are:

Max Motors (Bombay)

F. P. Motors (Bombay)

Axis Motors (Thane)

Ranjeet Motors (Thane)

Ahir Motors (Kalyan)

Spectra Motors (New Bombay)

H. M. Motors (Panvel)

PROMOTION

Promotional tools

1. ADVERTISING: It is defined as a paid non-personal communication with a target

(usually mass) market. It is cost effective and can reach a large number of people. It can

also be used for long term or short term objectives.


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There are various forms or mediums through which can advertise.

A. Broadcast Media:

Television

Radio

Cinema

B. Print media:

Newspapers

Magazines

Leaflets

C. Outdoor media:

Posters and billboards.

2. PUBLIC RELATIONS AN PUBLICITY:

Public relations are an umbrella term and refer to the totality of the organizationsbehavior with respect to the society in which it operates. The maybe regarded as good or bad

and is reflected in the companys reputation and image.


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3. SPONSORSHIP:

Sponsorship can be seen as a part of public relations and it is certainly the case that some

sponsorship goes on to generate positive publicity for the organization.

The company has not left any stone untamed in sponsoring the major events both globally

and domestically. The biggest of all is the sponsorship of the WORLD CUP for which

Hero Honda has the credit of being the only two-wheeler company in the world to do so.

Recently they are sponsoring the Hockey World cup. Besides this, the company has also

sponsored events like Master Golf, television academy awards, etc,

Thus the company has gained a lot of reputation by doing so.

4. DISCOUNTS/OFFERS:

The company has started giving discounts and other offers to the customers on the

purchase of a new bike, for instance, with the World Cup offer, in which the consumer was

to get a 1 gm gold coin with every purchase.

But after all these schemes and benefits may be because of cut-throat competition in the

segment with heavyweight competition such as Bajaj, kinetic, Yamaha, and TVS the

company (HERO HONDA) officially says:

Our aim is to proactively and consistently deliver value to the customer. We are giving

back to the customer after becoming successful. Most companies give discounts only when

their products are not doing well in the market. There is lost of competition in the segment,

especially from Bajaj. But the reason for Hero Hondas success it that we are consumer-

focused while other companies such as Bajaj tends to be more competitor-focused.

5. Test ride and Road show


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PROMOTION POLICY:

Company gives advertisement in different media vehicles time to time. Like in TV.

Magazines, newspaper, etc.

Hero Honda also organizes free service camps every year.

Hero Honda also takes art in trade fair.

Hero Honda with the help of ICICI Bank provides loan to the customers & also

provide easy monthly installment scheme to customers.

Hero Honda gives huge commission to their dealers.

Advertisement, local events sponsorship and promotions and inviting a prominent personality

for the inaugural or first like delivery function would contribute effectively in generating a

wider local interest and attention.

Hero Hondas latest DKD 2 commercial its two brand starring its Ambassador and Indias

heart throbs, Hritik Roshan and Sourav Ganguly, truly reflects the multi fact roles that

todays new generation plays. The commercial reflecting the charisma and vibrancy of these

two stars, takes Desh Ki Dhadkan to dazzling new heights. It is young, colorful and vibrantand represents the icons of contemporary times. And it will go a long way in strengthening

the leadership status of the product by the mile.

The new commercial is powerful film repeat with an impressive storyline. The effort to pack

the story, drama and impact in just 60 seconds was phenomenal challenge itself. The idea was

born itself. The idea was born out of the very essence of Hero and Stars. Keeping in mind

would cause on the drama and impact it would cause on the audience. It is a commercial

packed with action where todays heart throbs, Hritik and saurav, are seen tackling new roles.

The story being in a field adjoining a hill with two cool men, Hritik and Sourav on Hero

Honda bikes and Passion respectively.

Both Sameer and Aditya win lifetime opportunity act with Hritik and Sourav, the two star

heartthrobs of millions in India and all four will be seen in action in the new commercial

DKD-2.


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These are some of the Slogan for every product (Bike) and these are following:-

CD-100 : Fill it, shut it, Forget it.

CD100SS : Tough and Rugged.

Splendor : Designed to Excel.

Street Smart : License to enjoy.

Passion : When style matters, Bike born in studio not in factory.

CBZ : Motorcycling Unplugged.


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MARKET SEGMENTATION OF HERO HONDA

Demographic Segmentation

Income: HERO HONDA products are offered to the public taking into

consideration all the income groups in the society.

Age: The main segmented group for the motorcycle are 18 years and

above.

Occupation: All kinds of people are taken into account. Students,

professionals, Govt. Servants, etc.

Geographic Segmentation: The potential customers are basically

from every regions of India.

Psychographic segmentation: People purchasing bikes are very

economical, quality, brand conscious and loyality.

Behavioral segmentation: This segmentation is done considering

user status, benefit wise.


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TARGETING AND POSITIONING OF HERO HONDA

TARGETING

The proposed targeting people in the age group of 18 years and above with a average

monthly income of approximately Rs. 10,000 and above, who are brand loyal and

who are either students or retired individuals or may be employed as professionals,

government servants or having their own business, but mostly male i.e on the

different stratas of the population.

POSITIONING

The image that Hero Honda creates in the mind of the customers is the faith. The

add shown by it says Desh kiDhadkan. That means its a member of the Indian

family. It represents the Indian culture and society.

The objectives can be achieved through the implementation of suitable marketing strategy by

the organisation. It is the marketing logic that is formulated keeping in mind the needs of the

consumers and also strategies of the competitors.


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Porters five force model for Hero Honda:-

Bargaining Power of suppliers:

Suppliers of auto components are fragmented and are extremely critical for this industry since

most of the component work is outsourced. Proper supply chain management is a costly yet

critical need.

Bargaining Power of Buyer:

Buyers in automobile market have more choice to choose from and the increasing

competition is driving the bargaining power of customers uphill. With more models to choose

from in almost all categories, the market forces have empowered the buyers to a large extent.


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Competitive rivalry:

The industry rivalry is extremely high with any product being matched in a few months by

competitor. This instinct of the industry is primarily driven by the technical capabilities

acquired over years of gestation under the technical collaboration with international players.

Threat of substitute Products:

There is no perfect substitute to this industry. Also, if there is any substitute to a two-

wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly

compete or come in consideration while selecting a two-wheeler, cycles do never even

compete with the low entry level moped for even this choice comes at a comparatively higher

economic potential.

Threat of new entrants

Here the threat of new depends on the economies of scale of the cost of production

, and customer switching costs, access to industry distribution channels.


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S.W.O.T. ANALYSIS OF HERO HONDA (KARIZMA):-

STRENGTH:

It has a good speed and sporty look

Karizma is the First bike in India launched under Sports Bike Segment.

Loyal Customer Base: In the past four years, Karizma has been successful in building up a

good and loyal base among its customers.

After Sales Service: Till today, customers are satisfied with the after sales service provided

by Hero Honda for this particular product.

Refinement, comfort, great handling and that much-sought-after big bike feel are all

available on the Karizma.

Brand Recall: the name Karizma itself is a metaphor to its success. The brand Karizma has

given a good platform to this product in the Sports Bike Segment.

WEAKNESS:

High Maintenance: The maintenance of Karizma is high as compared to its biggest

competitor Bajaj Pulsar 200cc and 220cc.

Fuel Efficiency: The pulsar 200cc offers an impressive mileage of 38.3kpl in city and

42.4kpl in highway against the Karizma offers only 30kpl in city and a decent figure of 45kpl

in highway. Less Promotion: the promotions and ads of Karizma are very less as compared to its

competitors.

OPPORTUNITIES:

If Hero Honda comes up with the idea ofchanging some features of Karizma, like self

cancelling indicators, soft touch handle bar and digital speedometer, it will help them to


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boost up the sales of Karizma.

If they are able to improvise the fuel efficiency of Karizma, it will be a golden opportunity

to take over the market.

THREATS:

The major threat faced by Hero Honda Karizma is from Bajaj Pulsar, who has always been

the market leader in the 150 plus segment with 60% market share.

Karizmas strong competitors Bajaj and TVS, in 150 cc plus segment, already posses certain

featureslike self-controlling indicators, soft touch handle bar which Karizma lacks.

The competitor Pulsar 200cc has already come up with oil cooled engine which delivers

maximum power. This is again a major threat to Karizma.

S.W.O.T. ANALYSIS OF BAJAJ (PULSAR 220cc)

STRENGTHS:

Pulsar 220cc features Indias First Oil Cooled Engine which delivers maximum power

making it most powerful engine offered by Bajaj.

New Pulsar also provides Digital Speedometer, Self Canceling Indicators which is for the

First time in this segment in India.

Fuel efficiency: Pulsar 220cc delivers an impressive mileage of 38.2 kmpl in city as

compared to Karizma which delivers 30 kmpl in city.

Customer Base: In past decade Bajaj has established a strong base amongst its customers.


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WEAKNESS:

Style and Design: PULSAR 200cc and 220cc derives their styling from there previous

version Pulsar 150 Dts-i and 180 Dts-i.

Pricing; Bajaj 220cc (Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price)

OPPORTUNITIES:

If they derive new styling, shape, design for pulsar 200cc and 220cc then they can attract

more customers.

Taking into consideration the reviews of the customers regarding the fairing of 220cc

and making the needful changes will be an opportunity to capture an even larger share of

the 200cc+ segment

THREATS:

The biggest threat is faced from the goodwill of Karizmain this segment who is the Four-

Stroke Two Wheeler Ruler of the Indian bike market.

Certain technical faults in the bike design which are potentially dangerous to the riders

safety can be disastrous to the image of the bike.


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COMPARISION OF ADVERTISING STRATEY OF HERO HONDA AND BAJAJ

ADVERTISING STRATEGY OF HERO HONDA:-

Currently the number one company in terms of sales and has been dominant in the two-

wheeler segment since the past decade. Since the inception of hero Honda, the company has

been using television as a major role for its publicity. Though hero Honda was dominant in

sales it lacked the skills of creating a spectacular ad till now. Though it had a vast range of

mobiles, its advertising strategy was not up to the mark. For its publicity hero Honda has

been using many famous celebrities like Saurav Ganguly, the captain of Indian cricket team,

Hritik Roshan and other famous personalities as their brand ambassadors. Thus, hero Honda

has been spending huge amounts on its publicity.

The biggest of all is the sponsorship of the WORLD CUP for which Hero Honda has the

credit of being the only two-wheeler company in the world to do so.

Presently they have tried to gain publicity by sponsoring the hockey world cup event which is

the national game of India. There by creating a sense oneness and Nationalism through

providing publicity and encouragement to the game by various ads.

ADVERTISING STRATEGY OF BAJAJ:-

Bajaj is always known for its outstanding ads over the period of time. Since its

inception, Bajaj has come out with variety of ads and were always successful in their

advertisements. Scooters were well known by the brand name of Bajaj. Be it any scooter, one

used to recognize it by the brand name Bajaj. This was the identity a decade ago which the

Bajaj has still maintained. Bajaj is always known for its ads without well-known brand

ambassadors which is again a plus point to its cart as it saves a huge cost in terms of brand

ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of

Indianness in its ads. With a punch line Hamara Bajaj Bajaj drove into everybodys hearts

and the title song of Naye Bharat Ki Naye Tasveer added a g reat value to its mobikes and

scooters.


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A couple of years back, Bajaj had introduced an advertisement which promoted all the

different ranges it had, wherein they had shown each product they had with a feeling of

Indianness. Example: Eliminator passes-by a rangoli and drives slowly sideways without

disturbing it. People on boxer pass-by a temple and bend their head to give a little offering.

Such ads had revealing Indian culture had a great effect on Indians and Bajaj was successful

in most of its ads.

But recently, Bajaj had changed its brand logo along with its punch line i.e. Hamara

Bajaj got converted to Inspiring Confidence. The reason for this change as told by the

company officials was to keep pace with the new technologies in the fast moving world. Even

though it had changed its punch line, it didnt have much effect on its brand image.

A year back, Bajaj introduced DTSi technology upgrading its always successful

PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its

creativity in ads.


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Future Challenges and Plans:-

Sustaining the growth rate.

Need for innovation low cost/ hybrid vehicles.

Upgrading Indian two-wheeler products.

Taking the products to the global market.

Capturing Indian as well as global market.


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SCOPE

Scope was limited to the geographical boundary of the Ludhiana city.

Limitation of the Survey

Due to resources and time constraints the study was limited to the

Ludhiana city.

Sample was chosen according to the convenience and such sample

might not be representative of the universe.

Being an opinion survey the personal biases of the respondents might

have entered in their responses. As this study and its result are based on primary data, the probability of

personal bias cannot be overruled.

Since the sample size was 50, so the findings and conclusions of the

study are only suggestive not conclusive, in spite of the best and honest

efforts.

It cannot be accepted as a piece of excellence and is limited to the

knowledge and experience of a student.


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REVIEW OF LITERATURE

Though there are different market determinants for the product, the concept of

consumer behavior (CB) plays a vital role in selecting the particular companys

product. The following are few literature about CB towards automobile

product, particularly about two wheeler (TW) products at national and

international level.

Brown, T.M (1952) explored the presence of lagged influences.

Experimentation with various alternative hypotheses led to the development of a

habit hysterics habit persistence theory of the causal basic of the lag.

Havey, M. Wanger (1956) purposed theory analysis of CB for two related

aspects, the rest being that concerned with the consumers subjective point or

view as his action in the market and the second being concerned with the

economists point of view as an objective of the consumer market behavior.

Richard., E. Quandt (1956) revolved essentially around the problem of the

measurability of utility to initial approach to utility theory was the cardinals

approach of Jevans, Walras, Marshall etc., In fact, traditional theory is a

limiting case in the present model in a meaningful sense.

Eugene, J. Kelley (1958) found that to understand sopping behavior is to

increase importance the consumers are attaching to convenience considerations

to trend towards higher consumer valuation of ten convenience forms is


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identified. Raymond, J. Lawrence (1966) examined the CB treating it is a

dichotomy, bought brand A and bought some other brand that A argued that

paired product comparisons are misleading and should be abandoned

(Blankenship, 1966) shows that it is possible and in fact easy to collect direct

observation of purchasing behavior instead. Joel, B. Cohen (1967) concluded

differential preference for exerting and reviewing interpersonal influence may

lead complaint, aggressive, and detached people to refer different roles in the

diffusion of information and the adoption of new product.

Gayler, H.J (1980) revealed that consumers were disaggregated by social class

(SC) and it was determined whether the higher the SC group, the greater was

the distance travelled to shop for five products. In the case of groceries and

womens dress the hypothesis was supported, reflecting variations in store and

shopping centre preference which require different distance to be travelled.

Louis, L. Wilde (1980) found that there are significant advantages to greater

collaboration between economists and consumer researchers (CRs). Alice, M.

Tybout, and John, R. Hauser (1981) examined the role that conceptual model of

CB can play in a marketing audit and concluded by theoretical support for the

model and has evaluated its application in a marketing decision environment.


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RESEARCH METHODOLOGY

SOURCE OF DATA

The study is the blend of primary and secondary data. Primary data have been

collected from the TW owners; the CB towards preference of TW, being a

broad area in view of time, money, energy and other factors, the study is

confirmed to the consumers of TW in Chennai, Tamil Nadu.

TOOLS USED FOR DATA COLLECTION AND FIELD SURVEY

Tools used for data collection

Observation method, and

Interview Schedule method.

SAMPLING TECHNIQUE

Probability sampling technique has been used for collecting data. A pre test

was conducted to check and ascertain the schedule prepared was

comprehensive, clear, effective and accurate. Due importance was given while

selecting the sample on various consumer characteristics viz, age, education,

occupation and sources of income. To get a precise, reliable data various tools

have been used for analysis of data.


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RESEARCH

It is regarded as systematic process is any form of systematic and arranged

investigation to organize facts or gather data, and is often related to a problem

that has to be solved. Research is the study of materials, sources and data in

order to get conclusions. This project describes the methodology adopted for

conducting the comparative study on comparative Cadbury v/s Nestle

chocolates.


It enumerates the description of the sampling plan, research instruments used

for the collection of data, pre-testing of questionnaires, the use of statistical

tools and the techniques for the analysis of the collected data.

RESEARCH PLAN

To meet the objectives of the study undertaken, descriptive research type was

adopted.

RESEARCH DESIGN

It is an arrangement of plan, which guides the collection of data and analysis of

data. The purpose of research design is to ensure that the data collected is


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accurate and relevant. Any research work requires clarity of objectives to be

achieved effectively. Research design is so chosen that the analysis is accurate.

SELECTION OF POPULATION

Due to constraints, the study has been conducted in the city of Ludhiana. The

population for the research was the general people.

SELECTION OF SAMPLE

Sampling unit: consisted of students, women and men of all ages.

Sampling size: The sample for this research was 50 respondents.

Sampling procedure: judgement and convenient sampling techniques

were adopted.

SAMPLING TECHNIQUES

For the purpose of research, questionnaires were used to interview the

respondents. The questionnaires were developed so as to obtain responses

relevant to the objectives of the research. While designing the questionnaires

every attempt was made to make it precise so that the purpose of filling up the

responses does not consume time.

To find the general attitude, perception, beliefs and intentions of people towards

SUVs market in India, a questionnaire was developed.


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The questionnaire, which was administrated to the respondents for the

purpose of collecting primary data, was a structured one.

The questionnaire included dichotomous, rating, ranking type of

questions which were aimed at knowing the instant and unbiased

response of the respondents.

DATA COLLECTION METHOD

Primary data: in this study, I have used the unbiased structured

questionnaires and personal interviews as the method for receiving

primary data.

Secondary data: in this study, I have acquired the information from

various newspaper, magazines and various websites.

DATA ANALYSIS AND INTERPRETATION TECHNIQUES

For data analysis and interpretation, the data was processed with various tools

of percentages. For interpretation, various tools have been used and they are as

follows:

Tables

Graphs

Pie charts

Rank score charts


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ANALYSIS OF RATING TYPE QUESTION

In case of five scale where respondents are asked to indicate their degree of

agreement and disagreement scores were assigned from -2 to +2 where the

respondents disagreed with the statement a score -2 was assigned a score of 0

was given to an indifferent response. Frequencies were multiplied with their

respective scores and mean score was found out.

ANALYSIS OF RANKING TYPE QUESTION

Ranking type question was evaluated by giving weight ages to the different

ranks as follows:

Rank Weightage

1 5

2 4

3 3

4 2

5 1

These weights multiply with their respective frequencies and weighted mean

scores were calculated.

27797997 two wheeler automobile marketing strategy

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