automobile project

8/2/2019 Automobile Project

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CCOONNTTEENNTTSS

Chapter Page No.

1. Introduction...1-6a) Automobile Industry in India

b) Conceptual Framework

Brand

Brand Value

How to Develop Brand Value

2. Literature Review .73. Rationale of the Study..84. Objectives of the Study.95. Methodology.10

a) The Studyb)The Samplec) The Tools

i) For Data Collectionii) For Data Analysis

6. Analysis and interpretation..11-29

7. Conclusion...30

8. Limitation.31

9. Reference .32

10. Annexure33-35


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Introduction

The automobile industry in India accounts for a business volume of billions of dollar and has the

potential to grow much faster both through Indian as well as International manufacturers which

have established huge facilities in the country. The automobile industry is at the center of Indias

new global dynamic. The domestic market expanding rapidly as incomes rise and consumer

credit becomes more widely available. Manufacturers product lines are being continually

expanded, as is the local automotive manufacturing base. Expectation are high that India can

develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the

global automotive industry solution high up the automotive value chain.

After independence, Bajaj Auto Ltd. had an undisputed leadership over the market. The industry

registered compounded growth rate of 12% during the seventies.

In phase two, Japanese companies were tying up with domestic players and new models were

introduced. The growth rate for the two-wheeler industry this phase stood at 16.4%. This phase

extended till early nineties. In phase three, sales started picking up in 1994. In 1995, the industry

produced about one million scooters. 6 lakh motorcycles and 5 lakh mopeds. All most all the

companies were going in for expansion. The manufacturers of two-wheelers distinguish their

products on the basis of power, fuel efficiency, and maintenance requirement, easy in handling,

style & price.

India is the third largest producer of two wheelers after Japan and China and the second largest

consumer after China. Despite the poor road infrastructure and the meager purchasing power, the

two-wheeler industry in India has enjoyed a wider appeal with the masses as a means of private

transport. Two-wheelers are usually classified into three types: they are Scooters, Motorcycles,

Mopeds and Electric two wheeler.

The motorcycle industry, has reached the state of a competitive market with a few companies

producing a good range of products and present thrust is upon innovations and high efficiencies.

The market has steadily moved from a sellers market to a buyers market. The companies are

responding quickly to changing customer demands to stay in the business. Products are

introducing various models or upgrading existing models to cater to the different segment and


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there is an emphasis on increasing advertisement expenditure and better service through

upgraded service centers.

Market Structure

Automobile

Commercial Passenger Vehicle 2-wheeler 3-wheeler

Vehicle

Motorcycle Scooters Mopeds


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SEGMENT WISE ANALYSIS OF INDIAN TWO WHEELER

Fig.: Market Shares of the major players in the two wheeler market segment

HERO HONDA

Established in 1984 Joint Venture

Largest manufacturer of 2- wheelers in India

Manufacturing units Daruhera & Gurgaon

Product segmentation

Motorcycle Mopeds

Hero Hoda Ambition Hero Honda Activa

Hero Honda Passion Hero Honda Pleasure

Hero Honda Cbz-Disk Brak Hero Honda E-Sprit

Hero HNDA CBZ-XTREME Hero Honda StreetHero Honda Cd 100 Deluxe

Hero Honda Cd 100 Ss

Hero Honda Cd Dawn

Hero Honda Glamour

Hero Honda Hunk


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Hero Honda Karizma

Hero Honda Karizma Zmr

BAJAJ

Established in 1945 and started selling imported 2- wheelers.

It is India's largest and the world's 4th largest two- and three-wheeler maker

In 1959, it started manufacturing 2- wheelers in India.

In 1970, the company managed to sell 1,00,000 vehicles

It is based in Pune, Maharashtra with plants in Akurdi and Chakan, Waluj, Pantnagar in

Uttaranchal


Scooters Motorcycles

Bajaj Sunny Kawasaki Eliminator

Bajaj Chetak Bajaj Pulsar

Bajaj Cub Bajaj Kawasaki Wind 125

Bajaj Super Bajaj Boxer

Bajaj Wave Bajaj CT 100

Bajaj Legend Bajaj Platina

Bajaj Discover

Bajaj Avenger

Bajaj Pulsar 220 DTS-Fi

TVS Motors

Third largest 2 wheeler manufacturer in India.

It is a flagship company of the $4 billion TVS group.

The company has 4 plants- Hosur, Mysore, Himachal Pradesh, and one at Indonesia

TVS Motor Company is the first two wheeler manufacturer to be honored with the hallmark of

Japanese quality- The Deming Prize for Total Quality Management.


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Scooterettes Motorcycles Mopeds

TVS Scooty ES (60 cc) TVS Ind Suzuki AX 100 TVS XL 50(50 cc)

TVS Scooty KS (60 cc) TVS MAX 100 TVS XL (60 cc

TVS Scooty Pep (75 cc) TVS MAX R 100 TVS Eco

TVS ScootyPep+ (90 cc) TVS Supra TVS Astra

TVS Teenz TVS Suzuki Samurai TVS XL Super (60 cc)

TVS Teenz Elictric TVS Suzuki Shogun TVS Champ (60 cc)

TVS Star TVS Super Champ (60 cc)

TVS Star City

TVS Star city deluxe

TVS Star Sport

TVS Fiero F2

TVS Fiero FX

TVS Centra

TVS Victor (110 cc)

TVS Victor GLX (125 cc)

TVS Flame (125 cc,ccvti technology)


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Conceptual Framework

Brand: A brand is the identity of a specific product, service, or business. A brand can take

many forms, including a name, sign, symbol, color combination or slogan. The word brand

began simply as a way to tell one person's cattle from another by means of a hot iron stamp. A

legally protected brand name is called a trademark. The word brand has continued to evolve to

encompass identity - it affects the personality of a product, company or service.

Brand Value: Monetary premium that results from having customers who are committed to a

particular brand and who are willing to pay extra for it; also, the financial value attributed to the

brand, apart from other tangible assets.

Develop Brand Value:

How Can we Develop Brand Value?

Marketing business is all about creating brand. It want to be sure, when we launch any market

strategy, that we are making an effort to use the same logo and color scheme, the same key

message and phrasings that let those who are looking at our marketing materials to know

something about the business. And yet, it shouldn't be content to simply create a brand when we

market our business; it should be focused on ways that will let into develop brand value.

Factors that develop brand value:

There are a number of different things that we can do to develop brand value, but here are a few

to get you started:

To develop brand value, it need to be sure that we are getting the word out about theproducts and services that we have to offer;

To develop brand value, it is essential to identify the benefit that your customers findfrom using your products or services;

To develop brand value, it is important to look at products and services, to look atcurrent customers and to create a message that allows us to reach out to prospective

customers as well; and,

To develop brand value, it need to be sure that people out there can find your message.


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Literature Review

Industrialization has brought vast changes in the Automobile Industry, because growth and

development of any area requires appropriate transportation facilities. Automobile industry is

one of the fastest growing sector in our country. The rapid growth of middle class section is the

primary reason for the growth of two wheeler industry. People in rural and semi urban areas are

trying to elevate their life style and people in metropolitan cities are completely disappointed

with the public transport system. It arises needs of two wheelers.

Gopalan Murali (2010) states that Bajaj Auto's new brand strategy in motorcycles paid off well

with the company on course to recording its best year ever in terms of profitability and market

share. Its market share, which was barely 17 per cent a year ago, has developd since to 35 per

cent today. We have more than doubled our market share in a year and would be at our highest

level by the end of this quarter, Mr. Rajiv Bajaj, Managing Director, told Business Line. The

confidence stems from the fact that there are still three months to go for the recently launched

Pulsar 135 to consolidate itself in the market and start clocking volumes. Bajaj Auto has targeted

a monthly output of 100,000 Pulsars by end-March 2010 and believes the new 135cc will play a

key role in achieving this goal. At present, the Pulsar 150, 180 and 220 versions together account

for around 60,000 units each month.

Two wheeler markets are full of hope and opportunities. The emerging Indian economy iswooing many firms to enter this foray to consolidate future prospect of the Industry. Two

wheeler segments is a part of giant Indian automobile industry. This segment has seen 20% to

25% growth rate from the post 2000.India is having 35 crore middle class family which is target

consumers of this segment. Connecting villages to the towns and state capitals adding the sales

every year. Nearly 10 % of Indian population can afford the four wheeler. This statement itself

reveals the future and present prospect of two wheeler segment.


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Rationale of the Study

The studies on two wheeler markets have been reported in literature. Many researchers found

two wheeler markets are full of hope and opportunities. Two wheeler segments is a part of giant

Indian automobile industry. This segment has seen 20% to 25% growth rate from the post 2000.

India is having 35 crore middle class family which is target consumers of this segment.

The project aims to find out the various factors developing brand value of two wheelers that

makes possible purchase of a two wheelers. The objective of the study is to know consumers

opinion of their two wheelers regarding its features like appearance, mileage, price etc, to

analyze the impact of behavioural factors of consumers on choosing particular brand of motor.


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Objective of the Study

1. To measure the image of brands of two wheelers.

2. To investigate the impact of brand image and the attributes on brand preferences.

3. To find the factor developing brand value of two wheelers.


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Research Methodology

1. The Study

The present study is based on descriptive type research which identifies factors affecting brand

value development for two wheelers.

2. The Sample

For the present study the sample is been taken of 100 respondents which includes students and

employees.

3. The Tools

Tools for Data Collection

a) Primary Data:-The Primary Data is collected through self-designed questionnaire and personnel Interview of

customers.

b) Secondary Data:-For the collection of secondary data News Papers, Magazines, Articles, Research Journals,

Internet, Books etc. are used.

Tools for Data Analysis

For the analysis of collected data pie chart and graphical representation are applied.

.


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Data Analysis and interpretation

Q1 Do you own two wheeler?

Option Respondent

YES 70NO 30

Interpretation - We can see in the chart that most correspondents have two wheeler and we can

say two wheeler has become a need of the people.

70%

30%

Respondents

YES NO


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Q2 Which type of two wheeler do you own currently?

Geared motorbike 46

Geared scooter 0

Gearless 24

Interpretation In the modern era every people want speed and look due to this reason mostcorrespondence choose geared motor bike.

66%

0%

34%

Respondents

Geared moterbike Geared scooter Gearless


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Q3Average distance travelled by you in a month is around.

Average distance in a month Respondents

0-100 16

101-200 31

201-300 24

301-400 11

More than 400 11

I don't keep track 6

InterpretationIt is observed in the chart that people are using only limited distance to travel.

16%

32%

24%

11%

11%

6%

Respondents

0-100 101-200 201-300 301-400 More than 400 I don't keep track


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Q4 why do you not own a two wheeler?

Reason for not having two wheeler Respondents

Financial Constraints 15

Two wheelers do not meet requirement 2

Do not know how to drive 3

Satisfied with alternate mode of transportation 15

Others 6

InterpretationIt is finding in the chart that most people do not own two wheeler because most People

are satisfied with alternate mode of transportation and financial constraints

36%

5%7%

37%

15%

Respondents

Financial Constraints

Two wheelers do not meet requiremenr

Do not know how to drive

Satisfied with altennate mode of transportation

Others


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Q5 Which kind of two wheeler would you buy in future?

Which kind two wheeler would you buy in future Respondents

Motor Bike 46

Scooter 13

Electric Bike 8

Can't Say 29

I Don't want to buy one 4

InterpretationIt is analyzed that most customers want to buy two wheeler.

46%

13%

8%

29%

4%

Respondents

Motor Bike Scooter Electric Bike Can't Say I Don't want to buy one


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Q6. Which price bracket would your vehicle fall?

Price Bracket would your vehicle fall

Respondents

Less than 30,000 4

30,000-40,000 19

40,001-50,000 37

50,001-60,000 23

60,001-70,000 10

I don't know 6

InterpretationIt is observed in the chart that 40001-50000 range facilitate good milage withbetter look so people are preferring this range to buy two wheeler

4%

19%

38%

23%

10%

6%

Respondents

Less than 30,000 30,000-40,000 40,001-50,000

50,001-60,000 60,001-70,000 I don't know


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Q7. What would be the engine capacity (cc) of your two wheeler?

What would be the engine capacity of your

vehicle Respondents

Less than 100 cc 2

100cc to 125 cc 56

126cc to 150 cc 17

151cc to 180 cc 13

Above 180 cc 3

I don't know 9

2%

56%17%

13%

3%

9%

Respondents

Less than 100 cc 100cc to 125 cc 126cc to 150 cc

151cc to 180 cc Above 180 cc I don't know


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Q8 Rate while purchase of two wheeler.

Price

Rating while purchase two wheeler 1 to 5(least to most)

Price

1 14

2 7

3 15

4 13

5 49

InterpretationIt is analyzed that while purchase two wheeler customer dont sacrifice with

the product.

0

10

20

30

40

50

60

1 2 3 4 5

stage

price


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Looks and Shapes

Rating while purchase two wheeler 1 to 5(least to most) Looks and Shapes

1 18

2 8

3 224 18

5 34

InterpretationIt is observed that looks and shapes is not as considered as price of two wheeler.

0

5

10

15

20

25

30

35

40

1 2 3 4 5

stage

looks&shape


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Sound


Sound

1 40

2 16

3 5

4 19

5 20

InterpretationIt is observed that most people do not give important to the sound of the vehicle.

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5

stage

sound


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Maintenance cost of vehicle

Rating while purchase two wheeler 1 to 5(least to most) Maintenance cost of vehicle

1 11

2 10

3 21

4 12

5 45

InterpretationIt is observed that most of the importance given to maintenance cost while purchase

0

5

10

15

20

25

30

35

40

45

50

1 2 3 4 5

stage

Maintenance cost


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Availability of self start

Rating while purchase two wheeler 1 to 5(least to most) Availability of self start

1 3

2 8

3 94 12

5 68

7%

13%

20%

27%

33%

Rating while purchase two wheeler 1

to 5(least to most)

1 2 3 4 5


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Weight


Weight

Weight

1 16

2 153 33

4 16

5 19

InterpretationIt is observed that most people are neutral regarding weight while

Purchase.

0

5

10

15

20

25

30

35

1 2 3 4 5

stage

weight


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Engine Capacity

Rating while purchase two wheeler 1 to 5(least to most) Engine

capacity

1 2

2 6

3 35

4 16

5 38

InterpretationIt is observed that engine capacity is both in medium and in high

Level is considered.

0

5

10

15

20

25

30

35

40

1 2 3 4 5

stage

Engine capacity


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Resale Value

Rating while purchase two wheeler 1 to 5(least to most) Resale Value

1 13

2 9

3 364 22

5 18

InterpretationIt is analyzed that while purchase two wheeler customer want to buy that product

Which can provide them good resale value?

0

5

10

15

20

25

30

35

40

1 2 3 4 5

stage

Resale value


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Quality


Quality

1 10

2 18

3 35

4 15

5 21

InterpretationIt is analyzed that customer want to premium quality product.

0

5

10

15

20

25

30

35

40

1 2 3 4 5

stage

quality


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Brand Image

Rating while purchase two wheeler 1 to 5(least to most) Brand Image

1 6

2 8

3 15

4 26

5 41

InterpretationIt is observed in the chart that brand value make great importance to the

Customers.

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5

stage

Brand


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Q.9 How much experience do you have?

OptionRespondents

No-work ex. 76

Less than 12 months 8

12 months to 24 months 10

More than 24 months 6

Interpretation - We can see that 76% respondents have no work experience because mostly my

respondents were students and generally students have no work experience.

76%

8%

10%

6%

Respondants

No-work ex. 76

Less than 12 months 8

12 months to 24 months 10

More than 24 months 6


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Q.10 Annual family income-Option Respondents

Up to 200000 30200001-400000 45

400001-600000 20

More than 600000 5

Interpretation - We can say in the present scenario mostly respondents have minimum income is 200000-

400000 who can afford the two wheeler.

30%

45%

20%

5%

Respondents

Upto 200000

200001-400000 45

400001-600000 20

More than 600000


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Conclusion

The two wheeler industry today has been divided into various segments and people comprising

these segments and the attributes available in the two wheeler. While doing so they go through

different steps of decision making process and various roles associated with this process.

The research methodology adopted in this study was descriptive in nature and design of the study

utilized convenience sampling. The sample consisted of 100 respondents who were owners of

two wheeler and some not having two wheeler. Data was collected on the basis of a non-

structured non disguised questionnaire. The questionnaire was personally administered. The inf.

was analyzed by using simple statistical tools such as percentage etc.

1) Impact of friends became a dominant factor.

2) According to respondent the eight relatively important attributes consider while purchasing

motorcycle, in order of important were:

a) Price of the vehicle

b) Good looks

c) Mileage per liter

d) Availability of self start

e) Engine capacity

f) Resale value

g) After sales service

h) Brand image

In the conclusion it has found that to develop brand value of two wheeler it needs to consider

above factor so that customer may attract to purchase.

For developing brand value it also has to continuously compare the product and services with the

competitors and find the weak area of the rivals for gaining competitive advantage.

Customers are becoming more wise day by day and they are now willing to know all the in and

out of the things happening around them. This has led to increased customer awareness.

We can analyze that if brand does not provide same value as customer expected they cant

delight and customer would be dissatisfied and brand cannot develop value.


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Limitations of the study

1. The survey is conducted on a sample size of just 100 people.

2. The study is confined to Indore, may not be relevant to others cities.

3. The paucity of time during which the study was carried out limited the scope of the

research in the terms of number or variety of the respondents.


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References

1. http://www.twowheeler.com2. http://www.economictimes.indiatimes.com3. http://www.indianexpress.com4. Ramaswamy V.S. & Namakumari S.N (2004) Marketing Management, 2nd Edition.5. http://www.indiabike.com6. http://www.mouthshut.com7. http://www.wikipedia.com
http://www.indiabike.com/http://www.mouthshut.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.mouthshut.com/http://www.indiabike.com/


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ANNEXTURE

QUESTIONNIRE

Name: -

Contact no .

Age: - 15-20 20-25

25-30 Above 30Occupation: - Businessman Employee

Student Other

1. Do you own a two wheeler? * If YES Please go to Q 2, else go to Q 4.

YES NO

2. Which type of two wheeler do you own currently?

Geared motorbike Geared scooter

Gearless (eg.Honda Activa,TVS Scooty etc.)

3. Average distance travelled by you in a month is around? Please go to question 6

0-100km 101-200

201-300 301-400

More than 400 I don't keep track

4. Why do you not own a two wheeler? (You can tick more than one)

Financial constraints

Two wheelers in the market do not meet my requirements

Do not know how to drive/Afraid of driving


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I am satisfied with alternate mode of transportation like bus,rickshaws,etc

Others

5. Which kind of two wheelers would you buy in future? (Please choose one option)

Motor bike Scooter

Electric bike Cant's Say

I don't want to buy one

6. Which price bracket does/would your vehicle fall? *

Less than Rs. 30,000 30,000-40,000

40,001-50,000 50,001-60,000

60,001-70,000 I don't know

7. What is/would be the engine capacity (CC) of your two wheeler? *

Less than 100 cc 100cc to 125cc

126cc to 150cc 151cc to 180cc

Above 180 cc I don't know

8. Kindly rate each of the following based on the importance you give while purchasing a two

wheeler * (1=Least important to 5=Most important)

1 2 3 4 5

Price of Vehicle

Looks and Shape

(Design and Styling)

Mileage per liter

Sound of the vehicle


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1 2 3 4 5

Maintenance cost ofthe vehicle

Availability of Self-start (or button start)

Weight of the vehicle

Engine capacity of the

vehicle (cc of thevehicle)

Resale value of the

vehicle

Quality of after sales

services by the dealer

Brand image of thevehicle considered

9. How much work experience do you have? *

No work-ex Less than 12 months

12months to 24 months More than 24 months

10. Annual family income: *

Upto Rs 2,00,000 Rs. 2, 00,0014, 00,000

Rs4,00,0016,00,000 More than Rs. 6,00,000

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