automobile industry in india (bajaj pulsar) repaired)

8/3/2019 Automobile INDUSTRY in India (Bajaj Pulsar) Repaired)

1/73

1

A PROJECT REPORT

ON

The Study of Consumer Preference to BajajPulsar Bike, A Brand of Bajaj Auto Ltd

SUBMITTED TOWARDS PARTIAL FULFILLMENTOF

Master of Business Administration In Management

(Submitted to M.T.U, University, Noida)Academic Session

2011-2012

Under the Guidance of:SUBMITTED TO: SUBMITTED BY:

Miss.Richa Agnihotri Mr. Vikrant Dhingra

Roll no. 1006870056

MBA- IIIrd SEM

MIET, Meerut


2/73

2

STUDENT DECLARATION

I Mr. Vikrant Dhingra student of MBA here by declared that the research report entitled The

Study Of Consumer Preference To Bajaj Pulsar Bike, A Brand Of Bajaj Auto Ltd is

completed and submitted under the guidance of Miss. Richa Agnihotri, Faculty of MIET,

Meerut is my original work. The imperial finding in this report is based on the data collected by

me. I have not submitted this project report to Mahamaya Technical University,Noida or any

other University for the purpose of compliance of any requirement of any examination or degree.

DATE:

Mr.Vikrant Dhingra

PLACE: MBA III SEM

ROLL NO. 1006870056


3/73

3

CERTIFICATE

This is certified that the Project, entitled A Project Report on The

Study Of Consumer Preference To Bajaj Pulsar Bike, A Brand Of Bajaj Auto

Ltdwhich is being submitted by Mr.Vikrant Dhingra Student of MBA IIIrd sem of

MIET, Meerut Affiliated to the Mahamaya Technical University,Noida (U.P.) for the

award of Master of Business Administration in Management is a bonafied research work

carried out by her.

Mr.Vikrant Dhingra has worked under my guidance and supervision

and has fulfilled the requirements for the submission of the project.

Miss.Richa Agnihotri

Lecturer, Department of Management

Meerut Institute Of Engineering & Technology, Meerut

Project Guide

Date

Place


4/73

4

PREFACE

This Project Report is result of my six weeks summer training at Bajaj Auto Ltd. Summertraining is an integral part of our courses and its aim is to provide a practical experience of the

industry to the students. This helps the students to view the real business world closely. They

also come to know about the conditions under which they have to work in the near future.

Keeping all this in view, this project report The Study of Consumer Preference to Bajaj

Pulsar Bike, A Brand Of Bajaj Auto Ltdis prepared by me. Although Ive tried to keep this

report free from errors but as we all know the maxim To Err Is Human. Therefore there is a

chance of some mistake. A critical appraisal by anyone will be heartily welcomed.


5/73

5

INDEX

1.ACKNOWLEDGMENT.3

2. INTRODUCTION.4

3. COMPANY PROFILE(BAJAJ AUTO LTD)..14

4. OBJECTIVE OF STUDY...18

5. IMPORTANCE OF STUDY.18

6. METHODOLOGY.19

7. MARKET SHARE AND GROWTH RATES.20

8. MARKET STRUCTURE.22

9. PRIMARY DATA ANALYSIS.23

10.SALES FORECASTING47

11.CORRELATION55

12.HERFINDAHL INDEX.56

13.PRICEANALYSIS .58

14.CONCLUSION59

15.APPENDIX.72

16.REFERENCES..73


6/73

6

Acknowledgement

We are extremely grateful toMr.Vikrant Dhingra

for providing us the honor of carrying out theproject, which helped us to put our learnings into experience. Without her guidance we would

not have been able to proceed with our project in the right direction.

We would like to express our sincere regards to the staff of BAJAJ LIMITED, New Delhi,

whose help and guidance enables us to know what exactly consumers preference towards

television is all about.

We would also like to thank our family friends and relatives who have helped us and supported

us in all possible ways.

A Project report needs co-operation, guidance and experience of many more other than the

persons whose name appears on the cover, we would like to thank each and everyone who have

helped us in our endeavor.

Mr. Vikrant Dhingra

MBA- VI SEM

Roll No. 1006870056

INTRODUCTION

The Indian automotive industry consists of five segments: commercial vehicles; multi-utility

vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 5,822,963 units sold

in the domestic market and 453,591 units exported during the first nine months of FY2005

(9MFY2005), the industry (excluding tractors) marked a growth of 17% over the corresponding

previous. The two-wheeler sales have witnessed a spectacular growth trend since the midnineties.

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in the country in 9MFY2005 with


7/73

7

256,765 units exported. The total two-wheeler sales of the Indian industry accounted for around

77.5% of the total vehicles sold in the period mentioned

Figure 1:Segmental Growth of the Indian Two Wheeler Indust

ry

(FY1995-2004)

After facing its worst recession during the early 1990s, the industry bounced back with a 25%

increase in volume sales in FY1995. However, the momentum could not be sustained and sales

growth dipped to 20% in FY1996 and further down to 12% in FY1997. The economic slowdown

in FY1998 took a heavy toll of two-wheeler sales, with the year-on-year sales (volume) growth

rate declining to 3% that year. However, sales picked up thereafter mainly on the strength of an

increase in the disposable income of middle-income salaried people (following the

implementation of the Fifth Pay Commission's recommendations), higher access to relatively

inexpensive financing, and increasing availability of fuel efficient two-wheeler models.

Nevertheless, this phenomenon proved short-lived and the two-wheeler sales declined marginally

in FY2001. This was followed by a revival in sales growth for the industry in FY2002. Although,

the overall two-wheeler sales increased in FY2002, the scooter and moped segments faced de-

growth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led by higher

growth in motorcycles even as the sales of scooters and mopeds continued to decline. Healthy

growth in two-wheeler sales during FY2004 was led by growth in motorcycles even as the

scooters segment posted healthy growth while the mopeds continued to decline. Figure 1


8/73

8

presents the variations across various product sub-segments of the two-wheeler industry between

FY1995 and FY2004.

Demand Drivers

The demand for two-wheelers has been influenced by a number of factors over the past five

years. The key demand drivers for the growth of the two-wheeler industry are as follows:

Inadequate public transportation system, especially in the semi-urban and rural areas;

Increased availability of cheap consumer financing in the past 3-4 years;

Increasing availability of fuel-efficient and low-maintenance models;

Increasing urbanisation, which creates a need for personal transportation;

Changes in the demographic profile;

Difference between two-wheeler and passenger car prices, which makes two-wheelers the

entrylevel vehicle;

Steady increase in per capita income over the past five years; and

Increasing number of models with different features to satisfy diverse consumer needs.

MARKET CHARACTERISTICS

Demand

Segmental Classification and Characteristics


9/73

9

The three main product segments in the two-wheeler category are scooters, motorcycles and

mopeds. However, in response to evolving demographics and various other factors, other

subsegments emerged, viz. scooterettes, gearless scooters, and 4-stroke scooters. While the firsttwo emerged as a response to demographic changes, the introduction of 4-stroke scooters has

followed the imposition of stringent pollution control norms in the early 2000. Besides, these

prominent sub-segments, product groups within these sub-segments have gained importance in

the recent years. Examples include 125cc motorcycles, 100-125 cc gearless scooters, etc. The

characteristics of each of the three broad segments are discussed in Table 1.

Table 1

Two-Wheelers: Comparative Characteristics

Scooter Motorcycle Moped

Price*(Rs. as in January

2005)> 22,000 > 30,000 > 12,000

Stroke2-stroke, 4-

stroke

Mainly 4-

stroke2-stroke

Engine Capacity (cc) 90-150 100, 125, > 125 50, 60

Ignition Kick/Electronic Kick/Electronic Kick/Electronic


10/73

10

Engine Power (bhp) 6.5-9 7-8 and above 2-3

Weight (kg) 90-100 > 100 60-70

Fuel Efficiency (kms

per litre)50-75 50-80+ 70-80

Load Carrying High Highest Low

*Ex-showroom Mumbai

Compiled by INGRES

Segmental Market Share

The Indian two-wheeler industry has undergone a significant change over the past 10 years with

the preference changing from scooters and mopeds to motorcycles. The scooters segment was the

largest till FY1998, accounting for around 42% of the two-wheeler sales (motorcycles and

mopeds accounted for 37% and 21 % of the market respectively, that year). However, the

motorcycles segment that had witnessed high growth (since FY1994) became larger than the

scooter segment in terms of market share for the first time in FY1999. Between FY1996 and9MFY2005, the motorcycles segment more than doubled its share of the two-wheeler industry to

79% even as the market shares of scooters and mopeds stood lower at 16% and 5%, respectively.

Figure 2

Trends in Segmental Share in Industry Sales (FY1996-

9MFY2005)


11/73

11

While scooter sales declined sharply by 28% in FY2001, motorcycle sales reported a healthy

growth of 20%, indicating a clear shift in consumer preference. This shift, which continues, has

been prompted by two major factors: change in the country's demographic profile, and

technological advancements.

Over the past 10-15 years the demographic profile of the typical two-wheeler customer has

changed. The customer is likely to be salaried and in the first job. With a younger audience, the

attributes that are sought of a two-wheeler have also changed. Following the opening up of the

economy and the increasing exposure levels of this new target audience, power and styling arenow as important as comfort and utility.

The marketing pitch of scooters has typically emphasised reliability, price, comfort and utility

across various applications. Motorcycles, on the other hand, have been traditionally positioned as

vehicles of power and style, which are rugged and more durable. These features have now been

complemented by the availability of new designs and technological innovations. Moreover,

higher mileage offered by the executive and entry-level models has also attracted interest of two-

wheeler customer. Given this market positioning of scooters and motorcycles, it is not surprising

that the new set of customers has preferred motorcycles to scooters. With better ground

clearance, larger wheels and better suspension offered by motorcycles, they are well positioned

to capture the rising demand in rural areas where these characteristics matter most.

Scooters are perceived to be family vehicles, which offer more functional value such as broader


12/73

12

seat, bigger storage space and easier ride. However, with the second-hand car market developing,

a preference for used cars to new two-wheelers among vehicle buyers cannot be ruled out.

Nevertheless, the past few years have witnessed a shift in preference towards gearless scooters

(that are popular among women) within the scooters segment. Motorcycles, offer higher fuel

efficiency, greater acceleration and more environment-friendliness. Given the declining

difference in prices of scooters and motorcycles in the past few years, the preference has shifted

towards motorcycles. Besides a change in demographic profile, technology and reduction in the

price difference between motorcycles and scooters, another factor that has weighed in favour of

motorcycles is the high re-sale value they offer. Thus, the customer is willing to pay an up-front

premium while purchasing a motorcycle in exchange for lower maintenance and a relatively

higher resale value.

Supply

Manufacturers

As the following graph indicates, the Indian two-wheeler industry is highly concentrated, with

three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor

Company Ltd (TVS) - accounting for over 80% of the industry sales as in 9MFY2005. The other

key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic

Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto

Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd

(HMSI).

Figure 3

Shares of Two-Wheeler Manufacturers in Industry Sales (FY2000-


13/73

13

9MFY2005)

Although the three players have dominated the market for a relative long period of time, their

individual market shares have undergone a major change. Bajaj Auto was the undisputed market

leader till FY2000, accounting for 32% of the two-wheeler industry volumes in the country that

year. Bajaj Auto dominance arose from its complete hold over the scooter market. However, as

the demand started shifting towards motorcycles, the company witnessed a gradual erosion of its

market share. HHML, which had concentrated on the motorcycle segment, was the main

beneficiary, and almost doubled its market share from 20% in FY2000 to 40% in 9MFY2005 toemerge as the market leader. TVS, on the other hand, witnessed an overall decline in market

share from 22% in FY2000 to 18% in 9MFY2005. The share of TVS in industry sales fluctuated

on a year on year basis till FY2003 as it changed its product mix but has declined since then.

Technology

Hitherto, technology transfer to the Indian two-wheeler industry took place mainly through:

licensing and technical collaboration (as in the case of Bajaj Auto and LML); and joint ventures

(HHML).

Table 2


14/73

14

Technological tie-ups of Select Players

Nature of Alliance Company Product

Bajaj Auto Technological tie-up Kawasaki Heavy Industries

Ltd, Japan

Motorcycles

Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers

Technological tie-up Kubota Corp, Japan Diesel

Engines

HHML Joint Venture Honda Motor Co, Japan Motorcycles

KEL Technological tie-up Hyosung Motors & Machinery

Inc

Motorcycles

KEL Tie up for

manufacturing

and distribution

Italjet, Italy Scooters

LML Technological tie-up Daelim Motor Co Ltd Motorcycles

Hero

Motors

Technological tie-up Aprilia of Italy Scooters

.BAJAJ Auto limited

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4thlargest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Akurdi and

Chakan (Pune),Waluj (near Aurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and

exports motorscooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Forbes_Global_2000http://en.wikipedia.org/wiki/Forbes_Global_2000http://en.wikipedia.org/wiki/Auto_rickshawhttp://en.wikipedia.org/wiki/Motorcycleshttp://en.wikipedia.org/wiki/Motorscootershttp://en.wikipedia.org/wiki/Uttaranchalhttp://en.wikipedia.org/wiki/Pantnagarhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Chakanhttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/India


15/73

15

Over the last decade, the company has successfully changed its image from a scooter

manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes,

scooters and motorcycles. Its real growth in numbers has come in the last four years after

successful introduction of a few models in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

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.

BAJAJ PULSAR

DTSi Bajaj Pulsar is a motorcycle brand owned by Bajaj Auto in India.

The two wheeler was developed by the product engineering division of

Bajaj Auto in association with motorcycle designer Glynn Kerr Tokyo

R&D. Currently there are four variants available -with engine capacities

of 150cc, 180 and two variants with capacities of 220 cc. More than a

million units of Pulsar were sold by November 2005. A Pulsar 200

variant was discontinued in July 2009. With monthly sales of more than

48,000 units in June 2009, Pulsar is the leader in the 150 cc segment in

India with a market share of 43%.

Before the introduction of the Pulsar, the Indian motorcycle market trendwas towards fuel efficient, small capacity motorcycles (that formed the80-125 cc class). Bigger motorcycles with higher capacity virtually didnot exist (except for Enfield Bullet). The launch and success ofHeroHonda CBZ in 1999 showed that there was demand for performancebikes. Bajaj took the cue from there on and launched the Pulsar twins in
http://en.wikipedia.org/wiki/Rahul_Bajajhttp://en.wikipedia.org/wiki/November_29http://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Aurangabad_District,_Maharashtrahttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Indiahttp://www.r-d.co.jp/eng/http://www.r-d.co.jp/eng/http://en.wikipedia.org/wiki/Royal_Enfieldhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Royal_Enfieldhttp://www.r-d.co.jp/eng/http://www.r-d.co.jp/eng/http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bajaj_Autohttp://en.wikipedia.org/wiki/Motorcyclehttp://en.wikipedia.org/wiki/Aurangabad_District,_Maharashtrahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/1945http://en.wikipedia.org/wiki/November_29http://en.wikipedia.org/wiki/Rahul_Bajaj


16/73

16

India on November 24, 2001. Since the introduction and success of BajajPulsar, the Indian youth began expecting high power and other featuresfrom affordable motorcycles.

DTSi stands for Digital Twin Spark Ignition, a Bajaj Auto trademark.

Bajaj Auto holds an Indian patent for the DTSi technology. The AlfaRomeo Twin-Spark engines, the BMW F650 Funduro which was sold inIndia from 1995 to 1997 also had a twin-spark plug technology, and theRotax motorcycle engines,more recently Honda's iDSI Vehicle enginesuse a similar arrangement of two spark-plugs. However very few smallcapacity engines did eventually implement such a scheme in theirproduction prototypes.

Key players in the Bike segment :

BAJAJ AUTO HERO HONDA

TVS

YAMAHA

ROYAL ENFIELD
http://en.wikipedia.org/wiki/November_24http://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/Spark_Ignitionhttp://en.wikipedia.org/wiki/BMW_F650_singlehttp://en.wikipedia.org/wiki/BMW_F650_singlehttp://en.wikipedia.org/wiki/Spark_Ignitionhttp://en.wikipedia.org/wiki/2001http://en.wikipedia.org/wiki/November_24


17/73

17


18/73

18

Objective of Study

The objective of this research is to determine the customer as well as

retailers preferences regarding different brands of motorcycles which

result in their market share. It involves the study of consumers buying

behaviour and attitudes towards a variety of attributes and factors, which

help them in decision-making.

The brand we chose to focus on was BAJAJ AUTO Ltd.s PULSAR

brand of bikes. We studied the company profile, its market structure, the

brand awareness, growth rates and popularity among consumers so as to

forecast the future sales and understand the growth trends.We designed a questionnaire to survey various dealers and consumers to

understand the demand and supply situation of the bike market.

Secondary data from the internet has also been used for effective

analysis.

Importance of Study

The importance of this study is to practically understand the relevance of

the concepts of managerial economics in the business organisations and

here in the realm of the motorcycles industry. The present market

scenario was analyzed and future demands forecasted using the simple

regression techniques. Also, a comprehensive study of the major factors

involved in this market was conducted so as to see how different and

similar a market structure is from the theories.


19/73

19

Methodology

Primary data collection:

For primary data collection we designed a questionnaire to survey

various dealers and consumers. The objective of survey was to

understand the consumer preferences among various brands of

motorcycles available in the market and the factors affecting consumer

buying process.

The sample size for the survey was around 40-50.

Secondary data collection:

Internet was the major source for secondary data. Apart from

understanding the bike industry in general and Bajaj in specific, our

major task was to analyse the consumer demand for Bajajs PULSARs

brand and project the future sales for the company. We have used the

trend projection and exponential forecasting technique to predict the

sales.


20/73

20

Market share and Growth rates

Two- wheeler sales in the country have sky rocketed in the recent years,

and the annual sales of motorcycles in India expected to cross the 10

million mark by 2010. The low penetration of two-wheelers in the

country 31 two-wheelers per 1000 citizens (2004) leaves immense scope

for the growth of the market. Overall the industry sales of two-wheelers

have grown by 15% from 6.57 million in 2004/2005 to 7.57 million in

2005/2006. The buoyant Indian economy with a growth rate of around

8% per annum is further expected to fuel the growth of two wheelers inthe country.

The share of motorcycles have increased over the years, while that of other two-

wheelers like geared scooters, scooterettes and mopeds have shown a negative

growth or remained stagnant. The two-wheelers have penetrated 7% of rural house

hold and 24% of urban markets, thus it leaves an immense scope for the market to

grow.

Bajaj Auto one of the leading producers of automobiles in the country has beenable to sell close to 2.3 million vehicles in 2005/2006, the sales of the company

grew by almost 31%. The company registered a 32% growth in the sales of

motorcycles much above the industry average of 19%. Bajaj Auto has emerged as

a market leader in the entry level or price segment motorcycle with the Bajaj CT

100 accounting for nearly 40% of the market share. It also commands a 62%

market share in the premium segment of motorcycles with products like the Bajaj

Pulsar DTSI. TVS Motors which has lots of firsts to its credit in the two-wheeler

sector in the country was able to sell 1.34 million units during the same period thus

registering an overall growth of 15% from the previous year. In the motorcycle

segment the company's growth in sales was in sync with the industry average.

f this figures have daunted you the best is yet to come, the country leader

in two-wheelers hero honda have crossed the three million mark during

the year 2005/2006 which is a good few lakhs more than its nearest
http://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.htmlhttp://www.automobileindia.com/two-wheeler-models-in-india/bajaj-auto.html


21/73

21

competitor Bajaj Auto. The company accounted for nearly 40% of then

two-wheeler market. In the motorcycle segment the company has been

able to attain a market share of about 50%. The segment in which hero

honda has emerged as a clear winner is the Deluxe segment, which is thelargest segment in the motorcycles category, with its flagship family of

motorcycles splendor selling over 1.2 million units which is just a shade

less than all the two wheelers sold by TVS during the same year.

The motorcycle category is expected to see a further growth and

according to industry experts it will drive all other category of two-

wheelers to the periphery.

The table below shows the over all trend of Industry Sales over a 5 year

period. The figures are provided by the Society of automobile

Manufactures Association (SIAM).

Two-wheeler domestic sales trend

Motorcycles

2001-02 2002-03 2003-04 2004-05 2005-06

2887194 3647493 4170445 4964753 5815417


22/73

22

MARKET STRUCTURE

Market Structure

This industry is a high volume, medium growth sector characterized by

excess/ idle capacities owing to in efficient operations. Imports have not

been influencing prospects, as high government regulations limit this .

Characteristics

BIKES : primarily a commodity market - price sensitive

Effective distribution chain - through a simple network of dealers

and franchises.

Regulation - Emission norms as well as import regulations are in

existence.

Market - Urban areas are the largest market for Pulsar, followed by smalltowns and then rural centres.

The market of motorcycles shows a monopolistic structure due to the

following factors:

Different and many players in the market

Differentiated products.

Prices charged are different.

The competition is a non price competition i.e on the basis of

advertising and delivering differentiated products.


23/73

23

PRIMARY DATA ANALYSIS

1.Age group classification of customers preferring Bajaj Pulsar

18-24 24%

24-30 38%

30-36 19%

ABOVE 36 19%

As is clear the maximum buyers are of the age group 24-30 , hence it

can be interpreted as being popular in college going youth.

2.Bikes owned (categorisation)-

pulsarbajaj Splendor

Apache Unicorn

cd-dawn enfield

bullet(old)hunk enticer

ct100 CBZ

Pulsar DTS i hero honda


24/73

24

3.ANUAL HOUSEHOLD INCOME

10LAKH

15%

Which shows that a majority group belonging to the pulsar kind of bikesis more from the income group category 3-5 & 5-10 lakh group.

Moreover none of the customer was from < 1 lakh category which is also an

important finding from the marketing point of view.

income group share of survey

0%

5%

10%

15%

20%

25%

30%

35%

40%

10 LAKH

income group

%s

ha

re

Series1

income group share of survey

10 LAKH


25/73

25

Summary report (graphical representation of collected data)

4.purpose of the bike

(office/traveling/household/adventure/other)

1

-

LOWEST 30%

2 10%

3 15%

4 5%

5

-

HIGHEST 40%

LOWEST HIGHEST


26/73

26

LOWEST HIGHEST

1 - LOWEST 5%

2 20%

3 35%

4 40%

5 - HIGHEST 0%

LOWEST HIGHEST

1 - LOWEST 1 5%

2 9 45%

3 1 5%

4 6 30%

5 - HIGHEST 3 15%

OTHER


27/73

27

LOWEST HIGHEST

1 - LOWEST 33%

2 0%

3 33%

4 0%

5 - HIGHEST 33%

PLEASE SPECIFY THE OTHER FACTOR

College, small town movement, status ,shopping


28/73

28

5.Buying decision

Mileage/looks/brand/service/price

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 30%

4 25%

5

-

HIGHEST 45%

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 25%

4 35%

5

-

HIGHEST 40%


29/73

29

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 20%

4 45%

5

-

HIGHEST 35%

LOWEST HIGHEST

1

-

LOWEST 0%

2 15%

3 55%

4 25%

5

-

HIGHEST 5%


30/73

30

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 40%

4 30%

5

-

HIGHEST 30%


31/73

31

6.Purchasing decision

Friends/family/dealer/adventure/other

LOWEST HIGHEST

1

-

LOWEST 0%

2 5%

3 55%

4 0%

5

-

HIGHEST 40%

LOWEST HIGHEST

1

-

LOWEST 15%

2 15%

3 25%

4 20%

5

-

HIGHEST 25%


32/73

32

LOWEST HIGHEST

1

-

LOWEST 25%

2 40%

3 30%

4 5%

5

-

HIGHEST 0%

LOWEST HIGHEST

1

-

LOWEST 0%

2 10%

3 50%

4 15%

5

-

HIGHEST 25%

OTHER FACTORS


33/73

33

LOWEST HIGHEST

1

-

LOWEST 75%

2 0%

3 0%

4 25%

5

-

HIGHEST 0%


College, work requirements


34/73

34

7.Chosen media

Television/hoarding/print media/internet/other

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 0%

4 15%

5

-

HIGHEST 85%

LOWEST HIGHEST

1

-

LOWEST 5%

2 15%

3 20%

4 45%

5

-

HIGHEST 15%


35/73

35

LOWEST HIGHEST

1

-

LOWEST 0%

2 5%

3 10%

4 60%

5

-

HIGHEST 25%

LOWEST HIGHEST

1

-

LOWEST 30%

2 20%

3 20%

4 20%

5

-

HIGHEST 10%

OTHERS


36/73

36

LOWEST HIGHEST

1

-

LOWEST 50%

2 25%

3 25%

4 0%

5

-

HIGHEST 0%

IF OTHERS PLEASE SPECIFY

Radio,pamphlets


37/73

37

8.Brand powerEasy recall

Bajaj/herohonda/Yamaha/Honda/tvs

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 10%

4 25%

5

-

HIGHEST 65%

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 0%

4 60%

5

-

HIGHEST 40%


38/73

38

LOWEST HIGHEST

1

-

LOWEST 0%

2 35%

3 30%

4 35%

5

-

HIGHEST 0%

LOWEST HIGHEST

1

-

LOWEST 5%

2 5%

3 45%

4 35%

5

-

HIGHEST 10%

TVS


39/73

39

LOWEST HIGHEST

1

-

LOWEST 15%

2 50%

3 25%

4 10%

5

-

HIGHEST 0%


40/73

40

8.Bike on preference

Pulsar/apache/f-z 150/hunk/other

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 10%

4 45%

5

-

HIGHEST 45%

LOWEST HIGHEST

1-

LOWEST 0%

2 5%

3 30%

4 65%

5

-

HIGHEST 0%


41/73

41

LOWEST HIGHEST

1

-

LOWEST 5%

2 0%

3 5%

4 30%

5

-

HIGHEST 60%

LOWEST HIGHEST

1

-

LOWEST 0%

2 10%

3 40%

4 50%

5

-

HIGHEST 0%

ANY OTHER


42/73

42

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 0%

4 50%

5

-

HIGHEST 50%

IF OTHER,PLEASE SPECIFY

Splendor,karizma


43/73

43

9.Perception parameters about pulsar

Style/power/performance/value/brand

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 25%

4 20%

5

-

HIGHEST 55%


44/73

44

LOWEST HIGHEST

1

-

LOWEST 0%

2 5%

3 20%

4 45%

5

-

HIGHEST 30%

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 45%

4 35%

5

-

HIGHEST 20%


45/73

45

LOWEST HIGHEST

1

-

LOWEST 0%

2 5%

3 35%

4 55%

5

-

HIGHEST 5%

LOWEST HIGHEST

1

-

LOWEST 0%

2 0%

3 10%

4 80%

5

-

HIGHEST 10%


46/73

46

Some direct inferences

.Factors influencing the buying behavior

Brand recall

No. of Customers

Friends

Dealer

FamilyAdvertizement

50%

26%

6%

2%16%

Ad Recall

Bajaj Hero Honda Honda Tvs Yamaha


47/73

47

Sales Forecasting

1. Trend projection method:

This classical method of business forecasting is essentially concerned

with the study of movements of variables through time. It is used underthe assumption that the factors responsible for past trends in the variable

to be projected will continue to play their part in the future in the same

manner and to the same extent in magnitude and direction.

There are three techniques of trend projection:

-Jenkins method


48/73

48

Sales forecast of Pulsar for the year 2008 using Least Square

method (which is same as simple linear regression method):

YEAR SALES(S)in

Crores

T T2

ST

2000 865 1 1 8652001 1011.55 2 4 2023.12002 1374.94 3 9 4124.822003 1512.43 4 16 6049.722004 1647.86 5 25 8239.32005 1799.6 6 36 10797.6TOTAL 8211.38 21 91 32099.54


49/73

49

1.Trend Projection Method:

The straight line trend equation used for projecting future sales is:

S = a + bT

Where, S = annual sales

T = time in years

a, b are constants


50/73

50

The constants a and b are estimated by solving the following two

equations:

S = na + bT

ST = aT + bT2

Here, n = 6

S = 8211.38 crores

ST = 32099.54 crores

T = 21

T2

= 91

On solving the above two equations we get,

a = 696.63 and b = 191.98


51/73

51

RMSE Calculation:

On the basis of the calculated values of a and b, the predicted sales value

for the years 2006,

2007 and 2008 will be:

Sp2006 = 696.63 + (191.98*7) = 2040.49 crore

Sp2007 = 696.63 + (191.98*8) = 2232.47 crore

Sp2008 = 696.63 + (191.98*9) = 2424.45 crore

And, the actual sales values for the above three years are:

Sa2006 = 2072.00 crore

Sa2007 = 2487.00 crore

Sa2008 = 3497.00 crore

RMSE = {(3497.00 2424.45)2+ (2487.00 2232.47) 2+ (2072.00

2040.49)2}1/2

(3)1/2

= 636.69

Sales for 2009 and 2010 can also be forecasted:

S2009 = 696.63 + (191.98*10) = 2616.43 crore

S2010 = 696.63 + (191.98*11) = 2808.41 crore


52/73

52

3. Exponential smoothing:

It is a popular technique for short-run forecasting. It uses a weighted

average of past data as the basis for a forecast. It gives higher weight to

most recent data and least weight to observations of distant past. Theweights for past data are chosen in accordance with their degree of

influence on the future. The formula for exponential smoothing is-

ST+1 = AyT + (1-a) St

Where, St+1 = exponentially smoothed forecast

Yt = actual sales of previous year

St = forecasted sales of last year

Now, we apply this method on the available sales data of AWL

considering a six period average as the initial forecast for the year 2006:


53/73

53

S2006 = (865.00+1011.55+1374.94+1512.43+1647.86+1799.60)/6

= 1368.56

We take the smoothing constant, a = 0.4

Therefore, S2007 = (0.4*2072) + (0.6*1368.56)

= 1649.93

S2008 = (0.4*2487) + (0.6*1509.25)

= 1984.75

RMSE Calculation:

RMSE = {(2072.00 1368.56)2+ (2487.00 1649.93)

2+ (3497

1984.75)2

}1/2

(3 )1/2

= 1077.406

Sales for the year 2009 can also be predicted as:

S2009 = (0.4*3497.00) + (0.6*1984.75) = 2589.65 cr


54/73

54

Calculation of Correlation:

Correlation Coefficient = 3359.71/(6-1)*(364.848*1.871)

=0.984

This shows that there is a high degree of correlation between the time

period and sales i.e more the time period, more are the sales. This means

that sales are highly dependent on the time period positively.


55/73

55

Calculation of Herfindahl Index

Market shares of various brands in premium segment i.e. 150-220 c.c.

Pulsar : 41%

Hero Honda: 27%

TVS: 25%

Royal Enfield: 5%

Yamaha: 2%

Herfindahl Index: (41^2)+(27^2)+(25^2)+(5^2)+(2^2)

=3064

Since the value of H (Herfindahl index) is high, we can say that the

concentration ratio is also high in the segment of premium bikes.


56/73

56

PRICE REGRESSION PRICE ANALYSIS

The maximum number of bikes lie in the range between 40-50 thousands which is also a

usp of pulsar as it is almost near to the given range and provides a better value for money.

bike vs price in india

0102030405060708090

100

Sp

irit Byk

Boxe

r

Pulsa

r

Discove

r

Pass

ionP

lus

Ambitio

n

Activ

a

ZXZoom

GF-1

70

Pu

lse

Energ

y

Freedom

Beam

er

Bu

llet

Max10

0

Fier

o

Cru

x

Liber

o

bike type

bike

price

Series1

bike price distribution in india

0

10

20

30

40

50

60

70

80

90

100

0 20 40 60 80 100

price range

Types

ofbikes

Series1


57/73

57

0

10

20

30

40

50

60

70

80

90

Price

1

Bikes

veiw of bikes in india with priceSpirit

M80

Saffire

Chetak

Chetak

Byk

Byk

Caliber

Caliber

BoxerBoxer

Boxer

Pulsar 150

Pulsar

Pulsar

Pulsar

Eliminator

Wind 125

Wind 125

Discover


58/73


59/73

59

APPENDIX

Questionnaire for Bike Customers

(The findings of this survey will be used only for academic purposes by the

students of Lal Bahadur Shastri Institute of Management,New delhi)

Q1.Name of the customer

Q2.Age :

18-24

24-30

30-36

ABOVE 36

Q3.WHICH BIKE DO YOU OWN PRESENTLY ?

Q4.ANUAL HOUSEHOLD INCOME

10 LAKH


60/73

60

Q5.WHAT IS THE PURPOSE OF YOUR BIKE?

(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THE

LOWEST )

a)OFFICE

1 2 3 4 5

LOWEST HIGHEST

b)TRAVELLING

1 2 3 4 5

LOWEST HIGHEST

c)HOUSEHOLD

1 2 3 4 5

LOWEST HIGHEST

d)ADVENTURE


61/73

61

1 2 3 4 5

LOWEST HIGHEST

e)OTHER

1 2 3 4 5

LOWEST HIGHEST


Q6.RATE THE KEY FACTORS WHICH AFFECTED YOUR BUYING DECISION?

(5 BEING THE HIGHEST AND 1 BEING THE LOWEST )

a)MILEAGE

1 2 3 4 5

LOWEST HIGHEST


62/73

62

b)LOOKS

1 2 3 4 5

LOWEST HIGHEST

c)BRAND

1 2 3 4 5

LOWEST HIGHEST

d)SERVICE

1 2 3 4 5

LOWEST HIGHEST

e)PRICE

1 2 3 4 5

LOWEST HIGHEST


63/73

63

Q7.WHICH OF THE FOLLOWING INFLUENCES YOUR PURCHASE DECISION?


LOWEST )

a)FRIENDS

1 2 3 4 5

LOWEST HIGHEST

b)FAMILY

1 2 3 4 5

LOWEST HIGHEST

c)DEALER

1 2 3 4 5

LOWEST HIGHEST


64/73

64

d)ADVERTISEMENT

1 2 3 4 5

LOWEST HIGHEST

e)OTHER FACTORS

1 2 3 4 5

LOWEST HIGHEST


Q8.WHICH OF THE FOLLOWING MEDIA ARE YOU MOST LIKELY TO NOTICE AN

ADVERTISEMENT ?


LOWEST )


65/73

65

a)TELEVISION

1 2 3 4 5

LOWEST HIGHEST

b)HOARDINGS

1 2 3 4 5

LOWEST HIGHEST

c)PRINT MEDIA

1 2 3 4 5

LOWEST HIGHEST

d)INTERNET

1 2 3 4 5

LOWEST HIGHEST


66/73

66

e)OTHERS

1 2 3 4 5

LOWEST HIGHEST

IF OTHERS PLEASE SPECIFY

Q9.WHICH BRAND NAME DO YOU FIND EASY TO RECALL?


LOWEST )

a)BAJAJ

1 2 3 4 5

LOWEST HIGHEST


67/73

67

b)HERO HONDA

1 2 3 4 5

LOWEST HIGHEST

c)YAMAHA

1 2 3 4 5

LOWEST HIGHEST

d)HONDA

1 2 3 4 5

LOWEST HIGHEST

e)TVS

1 2 3 4 5

LOWEST HIGHEST


68/73

68

Q10.RATE THE BIKES ON THE BASIS OF YOUR PREFERENCE?

(RATE ON 5 POINT SCALE-5 BEING THE HIGHEST AND 1 BEING THELOWEST )

a)PULSAR

1 2 3 4 5

LOWEST HIGHEST

b)APACHE

1 2 3 4 5

LOWEST HIGHEST

c)F-Z 150

1 2 3 4 5

LOWEST HIGHEST


69/73

69

d)HUNK

1 2 3 4 5

LOWEST HIGHEST

e)ANY OTHER

1 2 3 4 5

LOWEST HIGHEST

IF OTHER,PLEASE SPECIFY

Q11.RATE YOUR PERCEPTION ABOUT PULSAR ON THE FOLLOWING FACTORS-


LOWEST )

a)STYLE

1 2 3 4 5

LOWEST HIGHEST


70/73

70

b)POWER

1 2 3 4 5

LOWEST HIGHEST

c)PERFORMANCE

1 2 3 4 5

LOWEST HIGHEST

d)VALUE

1 2 3 4 5

LOWEST HIGHEST

e)BRAND

1 2 3 4 5

LOWEST HIGHEST


71/73

71

0


72/73

72


73/73

REFERENCES

1.EBSCO HOST(database)

2.PROWESS(database)

3. INDIA STATS(database)

4.Peterson, Lewis and Jain: Managerial Economics

5.www.bajajauto.com

6.http://auto.indiamart.com/motorcycles/bajaj-pulsar

7.http://www.fadaweb.com/two_wheeler_industry.htm

8.auto.indiamart.com/motorcycles

9.www.iloveindia.com/bikes/index.html

10. www.infibeam.com/bikes/make/herohonda.html11. bikes.whereincity.com

12. www.bikesalesindia.com

13. www.infibeam.com/bikes/make/bajaj.html

14. www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.html

15. www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.html

16.FOR VEIWING THE COLLECTEDPRIMARY DATA VISIT

http://spreadsheets.google.com/ccc?key=0Au4_eI1zvZ0YdF8yT2VC

RHFKWmJZQm4zQkdlQ0d3enc&hl=en
http://www.bajajauto.com/http://www.bajajauto.com/http://auto.indiamart.com/motorcycles/bajaj-pulsarhttp://auto.indiamart.com/motorcycles/bajaj-pulsarhttp://www.fadaweb.com/two_wheeler_industry.htmhttp://www.fadaweb.com/two_wheeler_industry.htmhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.bikesalesindia.com/http://www.bikesalesindia.com/http://www.bikesalesindia.com/http://www.bikesalesindia.com/http://www.bikesalesindia.com/http://www.bikesalesindia.com/http://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoindiaforum.com/bajaj-to-launch-6-new-bikes-in-2009.htmlhttp://www.autoblogs.in/.../bajaj-pulsar-300-cc-india-bajaj-bikes.htmlhttp://www.infibeam.com/bikes/make/bajaj.htmlhttp://www.bikesalesindia.com/http://www.infibeam.com/bikes/make/herohonda.htmlhttp://www.iloveindia.com/bikes/index.htmlhttp://www.fadaweb.com/two_wheeler_industry.htmhttp://auto.indiamart.com/motorcycles/bajaj-pulsarhttp://www.bajajauto.com/

automobile industry in india (bajaj pulsar) repaired)

Documents