Study on

dealer preferences and different criteria analysed by a consumer in case of

2-wheeler purchase.

Presented By:Mansingh Nepram-26Dhruv Bainsla-10Aditya Vardhan Joshi-32Krishna Raj-15

Things to be covered.1. Introduction2. Segmentation3. Purchase Trends4. Objectives5. Bajaj Auto6. Competitors7. Location, Distribution, Logistics8. Dealers9. Consumer Buying Purchase10. Conclusion11. Sources

INTRODUCTIONIndia is the second largest manufacturer of two wheelers in the world. It stands next only to Japan

and china in terms of the number of two wheelers produced and sold respectively. The two-wheeler market in India is the biggest contributor to the automobile industry with a size of

Rs.100,000 million. The Indian two wheelers industry can be broadly classified into three major segments i.e:- 1. Scooters 2. Motorcycles 3. Mopeds.Among these 3 segments, major growth trends have been seen in the motorcycle segment,

Reason-increase in demand for motorcycles is due to its resistance and balance even on bad road conditions.

Major players- Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc.

Bajaj stands as the leader in the economy segment, Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj.

Factors that affect two-wheeler sales in India

● The Gross Domestic Product has grown at 8%● The average family income has increased● Financing has become easier● Reduction in taxes and duties● Introduction of international standards in India● Economic and fuel-efficient engines● Teenagers and youth using more and more motorcycles

SEGMENTATION

2-Wheeler purchase trends● Growing working population

● Increased access to credit and lower interest loans

● Increased consumer embrace of financial products

● Upward migration of household income levels

● Fast paced urbanization to rise from 28% to 40% by 2020

Bajaj Auto ● �Founded in 1926 by JAMNALAL BAJAJ.● �Bajaj Auto started its operations in 1945, as in importer of two and

three wheelers.● Bajaj Auto makes five kinds of motorcycles, two kinds of Scooters

and eight kinds of three wheelers. �● Bajaj Auto has a technical tie-up with Kawasaki Heavy Industries of

Japan to produce a range of the latest, state-of-art two-wheelers in India.

Strengths-Highly experienced management.-Product design and development capabilities(Redesign)-Extensive Research & Development focus.-Widespread distribution network-High performance products across all categories-High export to domestic sales ratio-High economies of scale.

Weakness-Still has no established brand to match Hero Honda's Splendor in commuter segment.-Product development is subsequently not very strong in this segment.-Not a global player in spite of huge volumes.-Sometimes the rate of Redesign is faster than the consumer’s acceptance

CompetitorsTVS - ApacheHero - KarizmaYamaha - FzRoyal Enfield - Bullet

50%+ mkt share is Hero; Bajaj 12%; Honda 25%

Manufacturing LocationsAkurdi, Pune 411035This is one of the oldest plant of Bajaj auto ltd with production capacity of 0.6 million vehicles/ year. The plant has been closed in order to equip for four wheeler production

Bajaj Nagar, Waluj AurangabadThis is second plant with production capacity of 0.86 million/ year .products manufactured here are Kristal, XCD and platina and commercial GC series Chakan Industrial Area, Chakan, PuneThis is the biggest plant of Bajaj auto Production Capacity of 1.2million/ year, Product manufactured here are pulsar and avenger and commercial Ge series. Pantnagar, UttarakhandThe most advanced plant of Bajaj auto .It has Capacity of 0.9million vehicles per year. Product manufactured here are Platina and XCD.

Distribution NetworkFor distribution Bajaj auto uses mix of depots and CNF agents. This is completely dependent on the distance of manufacturing location from dealer point .For example due to extensive distance from manufacturing plant from west Bengal to north-east India, there exist a depot in Khadakpur(W.B.) with capacity of housing 800 vehicles. There are similar depots in Punjab, Rajasthan and southern India.

Transportation & LogisticsThis function is not owned by Bajaj auto in any form.This is outsourced to third party vendor.The third party here is TCI along with some others like OSL, Jamuna trasport and Sumit transport-

Logistics to the vendor is decided by the company.A Transit insurance compliance is signed between the two parties-Freight charges are included in

product price.

Dealer

A two wheeler dealership or vehicle local distribution is a business that sells new or used bikes at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to sell their automotive vehicles.

Dealers in NCR1. Bajaj Auto has 11 Two Wheeler dealers in NCR

2. Dealers keeps a stock of 400-500 vehicles. In season time it raises to 800 vehicles.

3. The dealers has to keep a security with bajaj which is a credit limit for the dealer with bajaj.

4. Supply of two wheelers depends upon a) Targets set from the companyb) On previous year sales

Contd.Stock to be maintained on the basis of: The franchise’s market share in the industry & also Bajaj’s market share in the market.

Stock transportation: Setting of the truck (placement of bikes in the truck) to get the required no. of bikes. This also depends on which bikes get sold more. But it is always not feasible (row maintainance or setting).

For e.g. In case of Bajaj Pulsar’s the trucks need to get either 3 bikes, 5 bikes or 7 bikes together and not other figures due to the setting of the bikes in the truck and hence this effects the stock maintenance.

Case Bajaj Franchise Name: Standard Bajaj, Farrukhabad.

One of the most popular ones (Going by sales).

Have an average stock of 500 vehicles during normal season. On days like Dhanteras day: sales can cross 100 bikes in a day, during Diwali, marriage seas.

The bikes are transported to his dealership from the company depot based in Lucknow.Also, sometimes from the factory directly from Akurdi, Pune or Chakkan orRudrapur.

Avg sales/month = 600

Dealer Preference1.Place and Position of dealerThe only dealer in Farrukhabad.

2.Schemes - Discounts, freebies, additional goodies, extended warranty.

3. Type of dealer - first hand/ usedFirst Hand.

4.Transportation cost. They charge very less.

contd5.Finance optionsThey have tie ups with almost all banks.

6.Source of information - TV, Newspapers, Print Ads, Friends/relativesRegualar ads on local newspapers.

7.Customer friendly

8.Consumer LoyaltyHave high retention rates.

Consumer Buying Preference

Good mileage and convenience

Business purpose

Cost effective

Comfort drive in crowd and easy parking

comfortable riding

Short distance travel in city

Affordable price

Advice

MALE 87 48 38 8

FEMALE 33 15 5 5

Distribution of respondents according to their gender and occupation.

EXCLUSIVE

NON-EXCLUSIVE

ROAD SHOPS

SALES MELA

RURAL

9 0 2 1

SEMI-URBAN

26 19 4 0

URBAN

94 28 6 4

METRO

26 8 8 2

Distribution of respondents according to their area where they live and area of purchase.

VERY LOW AVERAGE HIGH VERY HIGH

YES 55 75 42 18

NO 5 26 16 3

Distribution of respondents according to the service getting and their level of satisfaction.

BAJAJ HONDA YAHAMA TVS HERO HONDA

MAHINDRA MOTORS

LML

YES 60 42 15 23 25 10 10

NO 17 8 6 5 7 2 1

Distribution of respondent’s response towards service getting from different brands.

ConclusionMales are using two-wheeler whether they are students or service goers than female students, service

goers. Respondents living in urban cities are more interested in buying two-wheeler from exclusive showrooms and

there is very less number of urban respondents to buy from road shops and sale mela.Bajaj and Honda are highest service providers to their two-wheeler buyers than other brands existing in

two-wheeler market.As far as mileage per litre of petrol is concerned, Hero Honda is ruling the market and finding favour with

consumers. Almost all the people give preference to stylish outlook, control, mileage, efficiency & brand image before

buying motorcycle.Television advertisement, road hoardings and road shows are the major source of information which affects

motorcycle purchased.

Sources1) Questionnaire Administered to Customers via face to face (given larger weightage)and surveymonkey2) Questions and Opinion Sought from Dealers3) Philip Kotler: Marketing4) Two Wheeler Industry- An ICRA Perspective5) Census 2011, Statistical Outline of India 2012-136) Global Journals7) http://www.westburn-publishers.com/journal-of-customers/8) www.ejcr.org/curations-8.html