Consumer - Summer internship project for Market research with primary sample PDF

Title Consumer - Summer internship project for Market research with primary sample
Author shweta ka
Course Marketing
Institution New Delhi Institute of Management
Pages 84
File Size 1.8 MB
File Type PDF
Total Downloads 54
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Summary

Summer internship project for Market research with primary sample...


Description

CONTENTS Topic

Page No.

1. Executive summary

2. Introduction 3. Historical development of the Major Players 4. Profile of the major players of two wheeler industry 5. Marketing Mix of the major Players 6. Consumer Behaviour 7. Research Methodology 8. Analysis and Findings 9. Limitations 10. Conclusions 11. Bibliography 12. Annexures A. Questionnaire B. Technological specification of the motor bike of three players

1. EXECUTIVE SUMMARY

The project is based upon the consumer buying behaviour and level of satisfaction of the customer for two-wheeler motor bike. Analysis is done with special reference to three major players in the Industry viz Hero Honda, Bajaj and TVS Motor. It is divided in to two parts; the first part deals with consumer behaviour, viz pre-purchase, decision making and post purchase behaviour for purchasing motor bike. This done to find out the effectiveness of various marketing strategies, marketing mix strategies, keeping

in view with the

behavioral aspect of customers. The second part deals with finding out the level of satisfaction of the customers through analysis the primary datas. The project has undergone customer survey through questionnaire and analysis of datas.

2. INTRODUCTION The field of consumer behaviour is so dynamic which we have to keep in mind that behaviour of consumer is committed to the “sprit of diversity” i.e. the diversities of new points (distinctive theories and concept), diversity of focus (strategic vs consumer), diversity of methods (qualitative vs quantitative). People differ not only is the usual ways by age and gender, by race and nationality, by education and occupation, by marital status and living arrangements but also in their activities and interest, their preference and opinions. As true believers in marketing concept we have tried our best to focus the needs, and behaviour of consumers by providing a readable text that clearly explains the relevant concepts upon which the discipline of consumer behaviour is based, and demonstrate how consumer behaviour concepts are used by marketing practitioner to develop and implement effective marketing strategies. In this project I have tried to demonstrate how individual consumer behaves in purchase particular brand of motor bike. Their pre-purchase behaviour, then decision to purchase and then past purchase action; marketing mix strategy adopted by the player keeping in view of pattern of consumer behaviour is main aspect in my work. In this way I have made highlight the historical background as well as their product development according to the need of the customer. Consumer lay a vital role in the health of economy because their decisions effects the demand, production and the success of some industries and failure of other. Thus the consumer behaviour is an integral factor and flow of all business in consumer oriented society.

3. HISTORICAL DEVELOPMENT OF MAJOR PLAYER

India is the 2nd largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the no. of two wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the government of India towards the passenger car industry, rising demand for personal transport, in efficiency in the public terms partition system etc. The Indian two wheeler industry made a small beginning in the early 50’s when automobile products of India (API) started manufacturing scooters in the country. Until 1958 API and infield were the sale producers. In 1948 Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally in 1960 it set up a shop to manufacture them is teachable collaboration with piaggio of Italy. The agreement expired in 1971. In the Initial stages, the scooter segment was dominated by API, it was later over taken by Bajaj Auto. Although various government and private enterprises entered the tray of scooters, the only new player lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market waiting period for getting a scooter from Bajaj Auto being as high as twelve years The motor cycle segment was no different, with only three manufacturers Viz infield, Ideal Jawa and escorts. While Enfield bullet was a for stroke bike, Jawa

and Rajdoot were two stroke bikes. The

motor cycle segment was initially

dominated by Enfield 350cc bikes and Escort 175cc bike. The two wheeler market was open 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 venture. With availability of fuel efficient 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 motor cycle were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two stroke and four stroke engine motorcycle respectively. These two players initially started with assembly of CKD Kits, and latter on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motor cycles, which grew at a rate of nearly 25% company’s annual growth rate in the last five years. The industry had a smooth

ride in the 50s, 60s and 70s when the government

prohibited new entries and stretchy controlled capacity expansion. The industry saw a sudden growth in the 80’s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicle in 1990. The entry of kinetic Honda scooter helped in providing case of use to the scooter owners. This helped in including youngster and working women, towards buying scooters, who were earlier inclined towards moped purchases. In the 90s, this travel was reversed with the introduction of scooterettes. In line with this the scooter segment has consistently lost its part of the market share in the two wheeler market.

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 0.4 mn vehicles. Barring Hero Honda, all the major producers suffered from recession in F\Y93 and FY 194. Hero Honda showed a marginal decline in 1992. The reason for recession in the scooter were the incessant rise in fuel price, high input costs and reduced purchasing power due to significant rise in general price level and crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits. 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. Bajaj auto

commands a monopoly in the domestic market with a market share of above 80% the rest in shared by Bajaj Tempo, Greaves Ltd and scooters India. The total no of registered two wheeler and three-wheelers on road in India, as on March 31, 1998 was 27.9 mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6 mn in 1990.

CHRONOLOGICAL HISTORY OF PRODUCTION BY THE THREE MAJOR PLAYERS

TVS MOTOR COMPANY LTD 1911- Origin In Road Transport The TVS group originated when Sri TV Sundram Iyengar stated the first bus service between Madurai and Dewakotai in Tamilnadu over the years the company grew with largest in its time. 1960- Entered The Field Of Manufacturing The TVS group entered the field of manufacturing with technical collaboration with many international companies to provide quality products. It included Motor parts, Motors, electrical appliances etc. 1980- Moped Division set up in Hosur TV Sundram had a vision to design, developed and deliver a family moped at affordable price first TVS 50 rolled out of Hosur plant in Tamilnadu. TVS 50 was launched 1982- Collabration With Suzuki In 1982 the TVS group started manufacturing 100cc motor cycles in technical collaboration with Suzuki motor Japan. Hence IND-SUZUKI was launched. 1984- Company Goes Public In 1984 the company went public with the name IND-SUZUKI which was later known as TVS-SUZUKI

1987- TVS Champ Was Launched TVS Suzuki launched its first indigenous moped TVS champ. It was seen as a land mark in moped styling. 1992-94- Scooty, Samurai, Shogun, Max 100 Was Launched. In a short span of two years the TVS group launched four new models of two wheelers to suit the imagination of the customers and they ended up with having a major chunk in the market share of the two wheeler segment. 1998- Shoulin Was Launched In 1998 TVS Suzuki launched the first five gear motor cycle in it segment which was known as SHOULIN. This was a major trend setter in the Indian motor cycle industry. 1999- Feiro Was Launched in 1999 TVS Suzuki launched its first motor cycle in premium segment. Priced around Rs. 51000 it was one of the major player of the premium segment. 2001- Victor Was Launched In 2001 the indigenously designed 110cc, 4- stoke motor cycle was launched. It was priced at around Rs. 42850 (on road) in Delhi. Since its launch it has registered a major growth in sales and has come out as a major player in its segment, providing competition to major players. September 2001- Break-Off With Suzuki Motor Company Japan In September 2001 TVS motor was born after it broke off from Suzuki motor Japan.

HERO HONDA July 14, 2002 Sundiro Honda Begins Production of New Wave Motorcycle May 10, 2002 Honda Vietnam Begins Exports of “Honda Wave Alfa” to the Philippines May 30, 2002 Honda Adds a Special Limited-Edition Model to the Sporty FORZA and FORZA S Scooter series. July 14, 2002 Sundiro Honda Begins Production of New Wave Motorcycle. July 22, 2002 New Scooter “Today” on Sale for 94,800 September 12, 2002 Sundiro Honda Begins Production of new Wave Motorcycle. September 12, 2002 Honda Announces 2002 Honda Announces 2003 Motorcycles Models for Europe

December 17, 2002 Total super Cub production reaches 35 Million Units. January 30, 2003 Honda Announces a Full Model Change for the CB 1300 SUPER FOUR LargeDisplacement Road Sports Bike February 3, 2003 Honda Develops Mountain Bike for Downhill competitions. February 21, 2003 Honda Announces a Model Change for the “Fusion” Large –Sized Scooter February 27, 2003 Honda Announces a Model Change for the “Fusion” large-Sized scooter February 27, 2003 Honda Announces a Model Change for the XR250 off-Road Sport Bike March 5, 2003 Honda Releases the New Solo A 50cc Leisure Bike with Innovative Styling March 24, 2003 Motorcycle March 24, 2003 Honda Releases ABS-equipped Versions of the Silverwing 600 and 400 large-Displacement Scooters.

April 18, 2003 Honda Launches the New XR250 Motored Sport Bike BAJA AUTO LTD. November 29, 1945 Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited. 1948 Sales in India commence by importing two and three-wheelers. 1959 Bajaj Auto obtains licence from the Government of India to manufacture two and three-wheelers. 1971 The three-wheeler goods carrier is introduced. Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. 1976 The Bajaj Super is introduced. The Bajaj Chetak is introduced 1976-77 Bajaj Auto achieves production and sales of 100,000 vehicles in a single financial year. 1981

The Bajaj M-50 is introduced. January 19, 19984 Foundation stone laid for the new plant at Waluj, Aurangabad1985 Production commences at Waluj, Auranbgabad in a record time of 16 months. 1990 The Bajaj Sunny is introduced;. The Bajaj M-80 and the Kawasaki Bajaj KB 100 motorcycles are introduced. The Bajaj M-80 and the Kawasaki Bajaj KB 100 Motorcycles are sold in a single financial year. 1991 The Kawasaki Bajaj 4S Champion is introduced. 1994 The Bajaj Classic is introduced. One Million vehicles were produced and sold in this financial year. 1995 The Bajaj

Super Excel is introduced while Bajaj celebrates its ten millinth

vehicle. Agreements signed with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared Scooter and moped development. 1997 The Kawasaki Bajaj Boxer and the RE diese Autorickshaw are introduced Bajaj Auto completes it 50 years. 1999

Caliber motorcycle notchup 100,000 sales in record time of 12 months.

4. PROFILE OF THE MAJOR PLAYERS OF TWO WHEELER INDUSTRY

The Indian two wheeler sector contributes the largest volumes amongst all the segments in automobile Industry. Though the segment can be broadly categorized in to 3-sub segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooter and stepthru’s. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well known Japanese firms earlier. But with most of the companies now planning 100% subsidiaries in India. In the last four to five years, the two-wheeler market has witnessed a market shift towards motor cycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to with stand the bad road conditions. In the process of the share of motor cycle 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 2000-01. All new vehicles are a now being replaced by 4 stock motorcycles. Reduced excise duties and fierce competition has led to a fall in prices of certain models. Hero, a name synonymous with two wheelers in India, began its journey around four decades ago. Starting as a manufacturer of by cycle components, hero has

today grown into a multiunit, multi-product, geographically diversified group of companies. The hero group began with simple Philosophy:

to provide excellent

transportation to the common man, at a price he could easily afford. Even today the dream providing the total satisfaction is all its sphere of activity. To consumers, in excellent products at an affordable price; a thorough understanding the fast changing consumer understanding the fast changing consumer behaviour, new market segment and opportunities, and marketing mix sensitive changing customer needs from the core of Hero’s marketing strategy and philosophy. Hero Honda Motors Ltd. is one of the leading companies in the two wheeler Industry. At present, it is segment with around 47% the market share during financial yr. 2000-01. The company ahs emerged one of the most of successful players, much ahead of it competitors by it superior and reliable product quality complemented with excellent marketing techniques. Hero Honda has been an early entrant in the 4-stroke segment of the two wheeler industry. With a right mix of product styling and pricing the company has graped the 4-stoke market as compared to Bajaj Auto and TVS. TVS Motors Ltd has been the largest manufacturer of mopeds which are prevalent as a low cost transportations and provide a tremendous potential is all parts of India. However the company is likely to face threat Bajaj Auto Ltd (BAL) which continued its price based competitions and Honda Motorcycle and Scooter Ltd. a new entrants in the 2 wheeler market.

Infact the company has achieved excelled the Industry growth rates by a huge margin. From April to December 2002 while the motor cycle industry sales were upto 38.68% TVS motor’s sales surged by a whooping 73.6% sat more importantly it is the success of its model Victor. Baja Auto has continued with its impressive performance witnessing significant growth is the motor cycle and three wheeler segments. Based on the performance fill data one can expect the company to meet it excellence by FY03.

Product Ranges Hero Honda is the largest player is the motorcycle

segment. Focused on

contemporary design and style, the company has a compare leusine ranges bikes viz; CD-100 DX CD-100 SS Splendor Street Smart Steek CBZ Passion Karizma

It splendor model is an urban centric with its fuel efficiency which accounts to over 60-70% of its sales. The passion launched in mid Jan. 2001 has a resending success contributing to 26% of its sales. TVS offers a wide ranges of two-wheelers motorcycles- Victor/Fiero/Max100/ max100R/Max DL. Scooterette- TVS scooty Moped- chap/XL/XL super/XL supper HD/sports. TVS plans to launch 4 new models in the coming 15 months. A 4-stroke version of India’s best selling scooterttes; TVS-scooty and 4-stroke version of the existing moped line will be launched this year. Bajaj Auto Ltd: Offer product a service to the customers so as to satisfy their needs. It’s having 4-stroke single cylinder natural air cool the displacement of engine is 111.6 CC having the engine power it 7-7 bhp at 7000 spm. The bike is having a hydrometric disc brake in front wheel. “Flash” is an added future in the bike. In 1993 BAL manufactured 12 different model 5-5 scooter model, 3-motorcycle model, moped model, 3-three wheeler model. But in the recent year Bajaj developed various model in the motorcycle segment which providing good riding conditions is urban road as well as rater roads. Scooter- cub/super/super FE/chetak/stride/Msl Priya. Moped- Bajaj Sunny.

Motorcycle- M-80/kawasaki RTZ/Kawasaki45 by 1993 and latest model are. Eliminator/Pulsor –180/Pulsor 150/Boxer/Caliber Crowa/Caliber

Sales performance of the player: Hero Honda SALES PERFORMANCE

Domestic Exports

Motorcycle

Dec'04

Dec'05

Apr'04-Dec'04

Apr'05-Dec'05

225250

238822

1892540

2155479

5501

6282

43441

72815

April to Dec 2002

April to Dec 2001

% change

Industry sale

2897842

2089637

38.68

Industry sale

1281342

1026102

24.85

Market share

44.21

49.11

Company website Sales

Jan 03

Jan 02

(Units) Motor cycle

Bajaj Auto:

145708

137119

%

April to

April to

%

change

Jan 03

Jan 02

change

6.3

1427050

1163221

22.68

December Sales Performance January 2, 2006

Sales Volume - December 2005 Sales: Dec' 2005 148,263 154,945 18,534 173,479 18,534

Dec' 2004 143,727 154,101 14,705 168,806 11,360

Change % 3 1 26 3 63

Oct. ~ Dec 2005 511,106

Oct. ~ Dec 2004 441,355

Change % 16

TOTAL 2 WHEELERS

541,126

478,358

13

3 WHEELERS TOTAL 2 & 3 WHEELERS

57,572 598,698

49,501 527,859

16 13

Exports out of the above

64,359

42,141

53

April ~ Dec 2005

April ~ Dec 2004

Change %

MOTORCYCLES

1,379,206

1,053,566

31

TOTAL 2 WHEELERS

1,478,522

1,178,017

26

3 WHEELERS TOTAL 2 & 3 WHEELERS

179,368 1,657,890

168,260 1,346,277

7 23

Exports out of the above

176,765

138,154

28

MOTORCYCLES TOTAL 2 WHEELERS 3 WHEELERS TOTAL 2 & 3 WHEELERS Exports out of the above

Sales Volume - Q3 2005 Sales:

MOTORCYCLES

YTD Sales

Baj...


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