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Analysis of preference of two wheelers amongst

students towards geared and gearless bikes

Research report submitted in partial fulfilment for the degree of

MASTERS IN BUSINESS ADMINISTARTION

by

Akansha Kaushal B 02

Akansha Yadav B 03

Ambalika Bharadwaj B 05

Amandeep Sahmey B 04

Dr. Amit Sharma B 07

Anirudhya Samanta B 09

Batch 2011-2013

Symbiosis Institute of Management Studies

Symbiosis International University (SIU), Pune

September 2011

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ACKNOWLEDGEMENTS

We have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals and organizations. We would like to extend our sincere

thanks to all of them.

We are highly indebted to Dr. Asha Nagendrafor her guidance and constant supervision as well

as for providing necessary information regarding the project & also for her support in completingthe project.

We would like to express our gratitude and thanks towards the faculty of Symbiosis Institute of

Management Studies for their kind co-operation and encouragement which helped us in

completion of this project.

We would like to express our special gratitude and thanks to our valuable respondents for giving

us such attention and time.

Our thanks and appreciation also goes to our colleagues in developing the project and people

who have willingly helped us out with their abilities.

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TABLE OF CONTENTS

S. No. Chapter Pg. No.

1 Abstract

2 Introduction 1

3 Review of literature 3

4 Research Methodology 4

5 Results 6

6 Summary 17

7 Conclusion 18

8 Bibliography 20

9 Appendix 21

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LIST OF TABLES

S. No. Tables Pg. No.

1

Table 1: Demographics of respondents.

6

2

Table 2: Type of two wheelers owned by respondents.

7

3

Table 3: Average distance covered per month.

8

4Table4: Price slot of two wheelers owned.

9

5

Table 5: Engine capacity of bikes owned.

10

6

Table 6: Last bike used by respondent.

11

7

Table 7: Ranking given to different features by bike

Owners.

12

8Table 8: Source of information collected by two wheeler

Owners.

13

9 Table 9: Respondents faith in the brand of two wheelers he /

she are using.

13

10

Table 10: Respondents experience with their bikes.

14

11

Table 11: Owners purpose to own a bike.

15

12

Table12: Preferences for buying a new to wheeler in near

future.

15

13

Table 13: Most preferred bike liked by two wheeler owners.

16

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LIST OF FIGURES

S. No. Figures Pg. No.

1 Figure 1: Demographics of respondents 6

2 Figure 2: Type of two wheelers owned by respondents 7

3 Figure 3: Average distance covered per month 8

4 Figure 4: Price slot of two wheelers owned 9

5 Figure 5: Engine capacity of bikes owned 10

6 Figure 6: Last bike used by respondent 11

7 Figure 7: Ranking given to different features by bike

owners

12

8 Figure 8: Respondents experience with their bikes 14

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ABSTRACT

Profile Change in Indian Two-Wheeler Industry

The demand shift from scooters to motorcycles in the 1990s was without parallel in anycomparable product category in India. This was mainly attributed to the change in

customers' preference towards fuel-efficient and aesthetically appealing models, which

scooter manufacturers failed to provide. The delayed launch of new, advanced scooter models,

fear of four-stroke scooters being prone to increased skidding risks and vibrations, and thedifficulty of maintenance also contributed to this shift. Interestingly, the growth in the

motorcycle segment was mainly driven by the demand from rural and semi-urban consumers.

An estimated 60% of the demand for motorcycles came from rural and semi-urban customers.

The rise in their disposable incomes on account of good monsoons in the 1990s provided thenormally conservative rural and semi-urban customers with extra money that induced them to

experiment with new, innovative products. Due to the ongoing rise in fuel prices there has been amajor shift in the automotive segment. People now desire more fuel efficient vehicles rather than

the old gas guzzlers. India has seen a rapid growth in the two wheeler segment, the major reasons

behind this being, maneuverability of two wheelers in the ever growing traffic, greater mileage,lower prices and lower maintenance costs. There are also a number of financial firms ready to

give loans for the purchase of two wheelers. The research is focused on the current scenario of

the two wheeler industry and the preference of different types of bikes amongst the youth. A

survey was conducted in which the target group was college students. It was seen that the girlspreferred the gearless Hondas whereas the boys wanted meaner machines. The segment

demanded more for the powerful and sports bikes even with a compromised mileage. Eventhough there has been a surge in price of fuel the two wheeler industry has shown a healthygrowth with Hero Honda still being the market leader.

Keywords: Preference, two wheelers, students.

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CHAPTER 1: INTRODUCTION

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

vehicles & passenger cars; two-wheelers; three-wheelers; and tractors. With 7,822,963 units soldin the domestic market and 753,591 units exported during the first nine months of FY2009, the

industry (excluding tractors) marked a growth of 43% over the corresponding previous.

The two-wheeler sales have witnessed a spectacular growth trend since the mid nineties. India is

the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler

industry has got spectacular growth in the last few years. Indian two-wheeler industry had asmall 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. Hero Honda and Bajaj Auto are two of the Indian companies that top the list ofworld companies manufacturing two-wheelers. The two-wheeler market was opened to foreign

companies in the mid 1980s. The openness of Indian market to foreign companies leads to the

arrival of new models of two-wheelers in to India. Easy availability of loans from the banks,relatively low rate of interest and the discount of prices offered by the dealers and manufacturerslead to the increasing demand for two-wheeler vehicles in India. This lead to a strong growth of

Indian automobile industry.

Evolution of Two-wheeler Industry in India:

Two-wheeler segment is one of the most important components of the automobile sector that has

undergone significant changes due to shift in policy environment. The two-wheeler industry hasbeen in existence in the country since 1955. It consists of three segments viz. scooters,

motorcycles and mopeds. In India there are some MNCs and Indian company dealing in

automobile sector. The main key players who are dealing in this sector are Hero Honda, Bajaj,Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India as well as inthe world and playing a very important role in two wheeler automobile sector. Hero Honda,

Bajaj and TVS are the Indian companies and Yamaha & Honda are international automobile

brand

Key Earnings Drivers

Below are the key factors, which strongly affect the auto industry: -

Government policy impact on petrol prices:Petrol prices determine the running cost of two/three wheelers expressed in Rupees per

kilometer. Petrol prices are the highest in India as GOI subsidizes kerosene and diesel. But withthe recent change in GOI policy to reduce the subsidy, the prices of petrol will remain constant at

the current prices. This will have a positive effect on purchases of two/three wheelers.

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Improvement in disposable income:

With the increase in salary levels, due to entry of multinationals following liberalization processand fifth pay commission, the disposable income has improved exponentially over the years.

This will have multiplier effect on demand for consumer durables including two-wheelers.

Changes in prices of second-hand cars:The second hand car prices of small cars have come down sharply in the recent past. This will

shift the demand from higher-end two-wheelers to cars and affect the demand for two-wheelers

negatively. A further drop in second-hand car prices will lead to pressure on the two-wheelermajors who plan to release higher-end scooters and motorcycles

Implementation of mass transport system:Many states have planned to implement mass transport systems in state capitals in the future.

This will have negative impact on demand for two-wheelers in the long run. But taking into

account the delays involved in implementation of such large infrastructure projects the demand

to be affected only five to seven years down the line.

Availability of credit for vehicle purchase:

The availability and cost of finance affects the demand for two- and three-wheelers as the trendfor increased credit purchases for consumer durables have increased over the years. Therefore,

any change with respect to any of these two parameters as a result of change in RBI policy has to

be closely watched to assess the demand for two- and three-wheelers.

AIMS AND OBJECTIVES

The main objective of the survey was to determine the preferences of two wheelers amongst the

college going students in India. The preference of geared or gearless vehicles amongst the

students. Which would provide valuable information to the two wheeler manufacturingcompanies so as to target the untapped youth population to its full potential. The specific

objectives were:

To study and compare the top three companies HERO HONDA, BAJAJ, & HMSITo compare and analyze the product strategies of these three companies.

To find out the reasons for change in growth of two wheeler industry.

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CHAPTER 2: REVIEW OF LITRETURE

"Until recently many researchers have shown interest in the field of two wheeler industry. Theyhave carried out numerous surveys and field observations to illuminate the darkness of this field.Their findings and suggestions are reviewed here.

PRASANTH ALOYSIUS (2008), PROFESSOR, MARKETING DEPT.CHRIST

UNIVERSITY INSTITUTE OF MANAGEMENT developed a model investigation conducted

on the leading two wheeler industry in the Indian market. After a result of a survey on the leader

amongst the top three brands i.e. Bajaj, Hero Honda and Yamaha he came to a conclusion thatmost youngsters prefer style and performance bikes over the economy segment. It was proved

that the Indian two wheeler market is on the major rise.

INDIABIKE.COM (2007) studied that in spite of the rise in oil price and interest rates, demanddrivers are present for the foreseeable future and are favorable for the two wheeler industry.

However, to capture this growth, any player will have to correctly position itself to appeal to the

consumer. It also stated that the companies should be able to set a balance between power and abetter mileage with lesser servicing of the vehicle required.

BIKE MAGAZINE, October 01, 2009 stated that Two-Wheelers Dealer Survey Over the past

few months two-wheeler volumes have been on a steady rise, primarily driven by strong growth

in rural volumes. However, off late there have been indications of a recovery in urban volumes.

To understand the ground realities, they conducted a dealer survey for two wheelermanufacturers with focus on tier-I and tier-II cities. Their coverage encompassed 30 dealers from

cities of Mumbai, Delhi, Chennai, Hyderabad, Nashik, Bangalore, Ahmedabad, Jaipur, Nagpur,

Indore, Coimbatore, Amritsar and Vadodara. Hero Honda dealers accounted for 47% of the

dealers surveyed, while 37% were Bajaj Auto dealers and remaining 17% were from a mix ofTVS Motors and multi-brand dealers. Most of the dealers felt that the current festive season

would be better than previous year and the current growth trend is likely to peak out following

the festive season. Breakup of dealers surveyed Expectations about future demand growth ALL,2 Unsure Yamaha, 1 13% Negative TVS, 2 Hero Honda, 10% 14 Bajaj, 11 Positive 77% Source:

India Infoline Research Key reasons for the current recovery 50 % 45 Percentage of dealers 40

35 30 25 20 15 10 5 0 Rural Demand market share Festival recovery ( Job Stability, Credit Norecovery season prefer bikes Dealers effort Govt. efforts Traffic New launches Fuel efficiency

for customer generation Gain in the satisfaction Economic Young of the Source: India Infoline

Research Festive season a key driver for growth About 57% of the respondents believe that the

current festival season has been the driving force for the recent recovery in urban volumes.

Number of bookings surged following the end of inauspicious period of Shradpaksha. Goingahead too, many dealers feel that robust volumes in the current season would be the key to a

robust performance for the current year. In fact, 77% of the dealers feel that current festiveseason would be significantly better than previous. However, 23% were still apprehensive about

a relatively better current festive season.

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CHAPTER 3: RESEARCH METHODOLOGY

STATEMENT OF PROBLEM: One of the major problems is the negative growth beingfaced by companies in the two wheeler industry.

The two wheeler industry has been shrinking continuously. From a peak of over 40% growth in

2002 it is currently facing a growth of -12% in the second quarter of 2010. Exhibit shows the

recent trends.

HYPOTHESIS

Hypothesis, 1: The majority segment consists of economical bikes.

Hypothesis, 2: Bajaj is the leader in the two wheeler market in India.

SAMPLING TECHNIQUE: Non-probability sampling technique Convenience Samplingwas used for collecting data from the consumers for the survey.

SAMPLE UNIT: Sample units are nothing but the respondents covered during the process ofcollecting data for the purpose of research. The sampling units consisted of people who own a

two wheeler.

SAMPLE SIZE: The sample size is the total number count of the number of totalrespondents covered for the research purpose.

Total sample size =51

Male33Female-18

STATISTICAL DESIGN: The data was collected and complied in Google docs and isanalyzed using graphs, tables and pie charts.

PRIMARY DATA: Primary data was collected through the administration of questionnairesto the sample units and conducting a pilot study to ascertain the worth of the questionnaire.

Questionnaire Design

Questionnaire AdministrationScoring Procedure

Pilot study

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SECONDARY DATA: Secondary data would be collected from internet, industry journals

and magazines. This information and the previous research papers will help in designing the

questionnaires and various attributes on which the companies are to be assessed. The company

dealers also provided valuable information.

LIMITATIONS OF STUDY: Owing to the huge population size (sampling universe)

spanning throughout the country, it becomes almost impossible to cover all the places in the

given scope of study.

The results thus obtained are just an overview of the areas and companies covered.

The data gathered and the results interpreted are what was done in a time frame of 6months and

hence may not reveal the depth of the situation.

For the ease of analysis, percentage of respondents using the products was considered as the

market share of the particular product in that category.

This dissertation is confined on the basis of more secondary data collected only hence it is not

very much a reliable data for the study.

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CHAPTER 4: RESULTS

Table 1: Demographics of respondents

Sr.

No

General information Number Percentage

Age (in years)

1 19-21 1 1.96

2 22-24 46 90.19

3 25-27 3 5.89

4 28-30 1 1.96

Fig 1: Age of respondents

Analysis: Referring to Table 1 and the fig 1 majority of respondents were from the age group 22-24

years. Two wheelers are more popular amongst the youth, moreover the target sample being from the

college going students majority of them fall into their early twenties.

1.96

90.19

5.89 1.96

Age of respondents

19-21

22-24

25-27

28-30

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Table 2: Type of two wheelers owned by respondents

Sr.No

Two wheeler owned Number Percentage

1 Geared bike 33 64.70

2 Gearless bike 18 35.29

Fig 2: Type of two wheelers owned by respondents

Analysis: Referring to Table2 and the Fig: 2 it can be seen that 64.7% of the respondents owned geared

bikes as compared to 35.29% who owned gearless bikes. The gearless bikes are more of a hit amongst the

college girls and the geared motorbikes amongst the boys. The gearless ones are more known for their

ease of riding and low maintenance whereas the geared bikes for their top speed, power, and sportiness.

64.7

35.29

Geared bike

Gearless bike

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Table 3: Average distance covered per month

Sr.

No

Average distance

covered per month (in

km)

Number Percentage

1 0-100 9 17.64

2 100-200 14 27.45

3 200-300 12 23.52

4 Above 300 16 31.37

Fig 3 Average distance covered per month

Analysis: Referring to table 3 and fig: 3 Majority of the respondents cover more than 300 km per month

(31.37%) while 27.45% of the respondents cover anywhere between 100-200 km per month on an

average. Since major segment of respondents fell in the 22-25 years age category, they had more incline

towards touring and pleasure riding.

0 5 10 15 20

0-100

100-200

200-300

Above 300

No of Respondents

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Table4: Price slot of two wheelers owned

Sr.No

Price of two-wheelerowned by the

respondents (in Rupees

thousands)

Number percentage

1 30-40 8 15.69

2 40-50 13 25.49

3 50-60 12 23.53

4 60-70 8 15.69

5 70 and above 10 19.60

Fig 4: Price slots of two wheelers owned by respondents

Analysis: Referring to Table 4 and Fig: 4 we have 13 out of 51 people surveyed own two wheelersranging between Rs.40, 000-50,000 which is the majority. 12 of the respondents own two wheelers

ranging between Rs.50, 000-60,000 while 10 of the respondents own two wheelers which cost above

Rs.70, 000.

0

2

4

6

8

10

12

14

30-40 40-50 50-60 60-70 70 and

above

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Table 5: Engine capacity of bikes owned

Fig 5: Engine capacity of the bikes owned

Analysis: Referring to Table 5 and Fig 5we have majority of the two wheelers owned range between 100-

125cc with regard to the engine capacity. A fair number of the respondents own two wheelers with an

engine capacity ranging between 126-150cc and 151-180cc. 5 out of 51 of the respondents own two

wheelers with engine capacity above 221cc. The majority still lying in the 100-125cc category the trend

in India is still in the economy and mileage sector but is also on the way to the premium segment as it is

evident that around 10% of respondents falling in the category of 221cc and above category.

INDIABIKE.COM (2007) report being in accordance with the above results of major sector being

the economy sector also stated that the companies should be able to set a balance between power and a

better mileage with lesser servicing of the vehicle required.

Fig: 5 Capacity of the engine

(in cc)

100- 125

126- 150

151- 180

181-220

221 or above

Sr.

No

Capacity of Two

wheeler (cc)

Number Percentage

1 100- 125 19 37.252 126- 150 11 21.57

3 151- 180 10 19.60

4 181-220 6 11.76

5 221 or above 5 9.80

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Table 6: Last bike used by respondent

Sr.

No

Make of last bike used Number Percentage

1 Hero Honda 4 7.82 Bajaj 21 41.17

3 TVS 4 7.8

4 Honda 11 21.56

5 Kawasaki 0 0

6 Yamaha 6 11.76

7 Others 6 11.76

Fig 6: Make of last bike used by respondents

Analysis: According to the table 6 and fig: 6 majority of respondents last used Bajaj with Honda comingsecond in this regard. According to the report by PRASANTH ALOYSIUS (2008), PROFESSOR

MARKETING DEPT.CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT, Hero Honda was the

market leader but as it can be seen from the above table that Bajaj has taken it over from Hero Honda and

is more popular amongst the college students. The main reasons for Bajaj topping the charts are probably

cause of its continuous launch of newer models and variants in the market compared to Hero Honda

which is a little lazy in its research and development sector. Hence the results are contradicting the

findings of the previous study

0

5

10

15

20

25

Hero

Honda

Bajaj TVS Honda Kawasaki Yamaha

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Table 7: Rankings given to the different makes of the bike in various spheres

Rank Fuel

consumption

Engine

capacity

Mileage Servicing

intervals

1 Poor 3 0 5 0

2 Average 10 10 15 123 Good 27 25 23 29

4 Excellent 11 16 8 10

Fig 7: Rankings given to the different makes of the bike in various spheres

Analysis: Referring to Table 7 and Fig.7 we have majority of the respondents being fairly satisfied with

the fuel consumption, engine capacity, mileage and service intervals of their respective two wheelers.

There had not been a single respondent having a complaint about the service intervals of the bikes,

moreover none was dissatisfied with the engine capacity and power of the bike owned by them. The

modern day bikes giving the riders a balance of power and mileage and that too in a smaller cylinder

capacity have brought smiles on the riders faces in the times of soaring oil prices.

0

5

10

15

20

25

30

35

Poor

Average

Good

Excellent

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Table 8: Source of information collected by two wheeler owners

Sr.

No

Source of information Number Percentage

1 Newspaper 6 11.76

2 TV/ Radio 13 25.5

3 Family or friends 28 54.9

4 Other 4 7.8

Analysis: According to the table 8 majority of respondents collected information from family or friends

by word of mouth before purchasing their two wheelers (54.9%). 25.5% of the respondents used

advertisements from TV/radio as a source of information while others referred to the newspaper

(11.76%) and the internet to gather information. Word of mouth still being the major driving factor in the

publicity of a particular make of two wheelers probably because the riders share their past experiences of

their rides.

Table 9: Whether the respondent has faith in the brand of two wheeler he / she is using

Sr.

No

Brand of two

wheeler used

Yes percentage No Percentage

1 Hero Honda 4 100 0 0

2 Bajaj 21 100 0 0

3 TVS 4 100 0 0

4 Honda 10 90.9 1 9.1

5 Kawasaki 0 0 0 0

6 Yamaha 6 100 0 0

7 Others 5 90.9 1 9.1

Analysis: According to the table 9 most of the respondents have faith in the brand of two wheelers they

are using. Hero Honda, Bajaj and Yamaha scoring a cent percent in the area of customer satisfaction

whereas Honda has still some work left to do in this field as 9.1 customers of Honda being dissatisfied by

their after sales services.

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Table 10: Respondents experience with their bikes

Experience with

the bike

Number Percentage

1 Worse 0 0

2 Poor 1 1.9

3 Average 6 11.76

4 Satisfied 25 49

5 Very Satisfied 19 37.25

Fig: Respondents experience with their bikes

Analysis: Referring to Table 10 and Fig 7 we have 49% of the respondents being satisfied with the

performance of their two wheelers and their experience with their respective two wheelers. 37.25% are

very satisfied whereas 11.76% have had a moderate experience with their two wheelers.

1 Worse

2 Poor

3 Average

4 Satisfied

5 Very Satisfied

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Table 11: Owners purpose to have own a bike

Sr.

No

Purpose to own a bike Number Percentage

1 Status Symbol 5 9.8

2 Utility 25 493 Touring 14 27.45

4 Style 4 7.8

5 Motor sports 3 5.9

Analysis: Majority of the respondents use their two wheelers for utility purposes (49%) while 27.45% use

it for touring. Being students the main purpose of owning a bike is for styling, pleasure rides and even

daily based commuting from home to college in case of days scholars.

Table12: Preferences for buying a new to wheeler in near future

Sr.

No

Kind of two-wheeler

preferred

Number Percentage

1 Geared 20 39.21

2 Gearless 4 7.84

3 Electric 7 13.72

4 Dont want to buy one 11 21.57

5 Cant say 9 17.65

Analysis: Majority of respondents prefer buying geared two wheelers in the future (39.21%) while

21.57% dont want to buy one. There is an increasing demand for electric bikes keeping the environment

in mind (13.72%). 7.84% would like to purchase gearless scooters.

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Table 13: Most preferred bike liked by two wheeler owners

Sr.

No

Preferred two-wheeler

1 Honda2 Royal Enfield

3 Bajaj Pulsar

4 Yamaha Fazer

5 Kawasaki Ninja

6 Harley Davidson

7 Hero Honda

8 TVS

9 Ducati

10 Yo bike

11 Scooty pep

12 Suzuki Hayabusa

Analysis: Referring to Table 13 we have Honda bikes as the most preferred ones cause of greater rider

comfort, low maintenance, and a pleasurable ride feel. Hondas are also a favourite amongst the girls as

this company offers the maximum range of gearless two wheelers as compared to the others. Moreover

Hondas are known for their product quality and longer service intervals with lower maintenance costs.

Royal Enfield being a dream of most of the bachelors mainly because of its muscular classy looks and the

road presence one has when on an Enfield.

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CHAPTER 5: SUMMARY

To summarize it can be said that majority of respondents are from the age group 22-24, 64.7% of

whom own geared bikes as compared to 35.29% who own gearless bikes. Two wheelers are

more popular amongst the youth, moreover the target sample being from the college going

students majority of them fall into their early twenties. 64.7% of the respondents owned geared

bikes as compared to 35.29% who owned gearless bikes. The gearless bikes are more of a hit

amongst the college girls and the geared motorbikes amongst the boys. The gearless ones are

more known for their ease of riding and low maintenance whereas the geared bikes for their top

speed, power, and sportiness. Majority of the respondents cover more than 300 km per month

(31.37%) while 27.45% of the respondents cover anywhere between 100-200 km per month on

an average. Since major segment of respondents fell in the 22-25 years age category, they had

more incline towards touring and pleasure riding. 13 out of 51 people surveyed own two

wheelers ranging between Rs.40, 000-50,000 which is the majority. 12 of the respondents own

two wheelers ranging between Rs.50, 000-60,000 while 10 of the respondents own two wheelerswhich cost above Rs.70, 000.

Majority of the two wheelers owned range between 100-125cc with regard to the engine

capacity. The majority still lying in the 100-125cc category the trend in India is still in the

economy and mileage sector but is also on the way to the premium segment as it is evident that

around 10% of respondents falling in the category of 221cc and above category. A fair number

of the respondents own two wheelers with an engine capacity ranging between 126-150cc and

151-180cc. 5 out of 51 of the respondents own two wheelers with engine capacity above 221cc.

Majority of respondents last used Bajaj with Honda coming second in this regard. The main

reasons for Bajaj topping the charts are probably cause of its continuous launch of newer models

and variants in the market compared to Hero Honda which is a little lazy in its research and

development sector. They were fairly satisfied with the fuel consumption, engine capacity, and

mileage and service intervals of their respective two wheelers. Majority of respondents collected

information from family or friends by word of mouth before purchasing their two wheelers

(54.9%). 25.5% of the respondents used advertisements from TV/radio as a source of

information while others referred to the newspaper (11.76%) and the internet to gather

information. Majority of respondents prefer buying geared two wheelers in the future (39.21%)

while 21.57% dont want to buy one. There is an increasing demand for electric bikes keepingthe environment in mind (13.72%). 7.84% would like to purchase gearless scooters. In the end

we have Honda bikes as the most preferred ones cause of greater rider comfort, low

maintenance, and a pleasurable ride feel.

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CHAPTER 6: CONCLUSION

The two wheeler companies should focus on gearless scooters. The market share of gearless

scooters is increasing at a healthy rate. Bajaj is virtually absent in this range that caters to theneeds of women and families. Presently Honda, Hero Honda and Bajaj are big players in thissegment. Yamaha is also catching up with the leading Indian two wheelers companies but is

totally absent in the gearless scooter segment thereby being less popular amongst girls.

According to the table 6, Pg. No. 11 the results of Bajaj topping the charts in market leadership isnot in accordance with the report by PRASANTH ALOYSIUS (2008), PROFESSOR

MARKETING DEPT.CHRIST UNIVERSITY INSTITUTE OF MANAGEMENT.

INDIABIKE.COM (2007) stated that the major sector of the Indian two wheeler market falls in

the economy segment it also stated that the companies should be able to set a balance betweenpower and a better mileage with lesser servicing of the vehicle required, the study is in

accordance with this report as seen from table 5, Pg. No. 10. In Indian markets for majority of

the two wheeler product categories, foreign companies have streamlined their operations anddistribution channels in a much more effective way ensuring higher availability of their goods inthe market in pan-India.

HYPOTHESIS TESTING

Hypothesis 1: The majority segment consists of economical bikes.

Hypothesis 2: Bajaj is the leader in the two wheeler market in India.

PARAMETERS TO TEST HYPOTHESIS

Since the hypothesis is stated in absolute subjective terms, there was a requirement to convert

this subjectivity into objectivity to arrive at a stage for testing the hypothesis. For performing this

task the companies were tried on the grounds of:

Availability of product

Number of customer complaints

Dealers satisfaction level

Areas of operation and design of distribution channels

Hold on the market share hence the companies were tested on these basis and hence the results

were compiled according to the respective product categories itself.

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RESULT OF HYPOTHESIS TESTING

The overall research and analysis of the two wheeler companies across these 7 categories led to

the following result: Hero Honda has lost its position of being the leader to the new players. Bajaj is the leader in the two wheeler market in India. The majority of the riders fall in the economy segment of two wheelers.

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CHAPTER 7: BIBLIOGRAPHY

1) "Hero MotoCorp Board of Directors". Hero MotoCorp. Retrieved 2011-08-10.2) "Stand alone Result". Bombay Stock Exchange. Retrieved 2011-08-10.3) Key Milestones of Hero MotoCorp, Hero MotoCorp, August, 2011.4) "Two-wheeler makers ride high in May". Business Standard,July 2010.5) Forbes, "World's most reputed companies". Retrieved 2007-07-08.

http://www.heromotocorp.com/co_board_directors.htmhttp://www.bseindia.com/qresann/results.asp?scripcd=500182&scripname=Hero%20Motocorp%20Limited&type=69.5&quarter=MC2010-2011http://www.heromotocorp.com/aboutus/landmarkshttp://www.heromotocorp.com/aboutus/landmarkshttp://www.business-standard.com/india/news/two-wheeler-makers-ride-high-in-may/21/40/396783http://en.wikipedia.org/wiki/Business_Standardhttp://en.wikipedia.org/wiki/Business_Standardhttp://www.forbes.com/business/2006/11/20/leadership-companies-reputation-lead-managing-cx_hc_1120rep_list_3.htmlhttp://www.forbes.com/business/2006/11/20/leadership-companies-reputation-lead-managing-cx_hc_1120rep_list_3.htmlhttp://en.wikipedia.org/wiki/Business_Standardhttp://www.business-standard.com/india/news/two-wheeler-makers-ride-high-in-may/21/40/396783http://www.heromotocorp.com/aboutus/landmarkshttp://www.bseindia.com/qresann/results.asp?scripcd=500182&scripname=Hero%20Motocorp%20Limited&type=69.5&quarter=MC2010-2011http://www.heromotocorp.com/co_board_directors.htm

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APPENDIX

QUESTIONNARE TO ELICIT INFORMATION ON THE

PREFENCE OF TWO WHEELERS OWNED TOWARDS

GEARED AND GEARLESS BIKES.

Dear respondent,

We, students of Symbiosis Institute of Management Studies, Pune are conducting a survey on thepreference of two wheeler owners towards geared and gearless bikes. Kindly spare 2 minutes of

your precious time in order to fill the questionnaire given below.

Name:Date of Birth:

Sex:

Address:

Telephone/Mobile:

Q1- Which two wheeler you own currently?

i) Geared bike ( )ii)Gearless Motor Bike. ( )

iii) Gearless Moppets (Honda, Scooty, Bike). ( )

Q2- Average Distance Covered in a Month?

i) 0-100 km ( )

ii ) 100-200 km ( )

iii)200-300 km ( )

iv) 300-400 km ( )

Q3- Which price slot your bike belongs?i) Less than 30000. ( )

ii)3 0000 4 0000. ( )

iii)4000150000. ( )

iv)5000160000. ( )v)I dont know ( )

Q4- What is engine capacity of your bike?

i) Less than 100cc ( )

ii) 100cc to 125cc ( )iii) 126cc to 150cc ( )

iv)151cc to 180cc ( )v) Above 180cc ( )

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Q5- Which was the last bike used by you?

(i) Hero Honda ( )(ii) Bajaj Discover ( )

(iii) TVS Apache ( )

(iv) Honda Stunner ( )

(v) Others ( )

Q6 - What is the ranking you would give to the following features of

the bike? (on a scale of 1=Poor to 4=Excellent)

Fuel Consumption ( )Engine Capacity ( )

Average ( )

Mileage ( )

Q7- You have collected information about the particular brandfrom which source.

i) Newspaper ( )ii) T.V. or Radio ( )

iii) Family, Friends ( )

iv)Others ( )

Q8- Do you have faith on the Brand of your current bike?

i) Yes ( )

ii) No ( )

Q9- Experience with your bike:-

Worse ( )

Not Satisfied ( )Good ( )

Satisfied ( )

Very satisfied ( )

Q11- Features you want to prefer in the bike?

(1)Tyre(a) Broad ( )

(b) Narrow ( )

Q12- For what purpose you want to have bike

(a)Status Symbol ( )

(b)Utility Vehicle ( )(c)Long Journey Vehicle ( )

(d)Style. ( )

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Q13- Which kind of two wheeler would you buy in future?

(a) Motor bike ( )(b) Scooter ( )

(c) Electric bike ( )

(e)Cant say ( )

(f) I dont want to buy one ( )

Q14- Which is the most preferred bike liked by you?