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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
Product segmentation
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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Product segmentation
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
Rating while purchase two wheeler 1 to 5(least to most)
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
Rating while purchase two wheeler 1 to 5(least to most)
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
Rating while purchase two wheeler 1 to 5(least to most)
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
0