Bajaj Project Report

MBA is a course in which the theoretical knowledge is backed by the practical study. That study is in the form of project. The Summer Training Project is one of the important parts of the curriculum and each and every student has to work for the project. The summer project enables the students to know more about the application of theoretical knowledge. The current situation of the market is made known to the students when they undertake the project. The project gives better insides into the application part of the theory.

The companies in an industry and their operations can be better known by the students when they analyze the data, and prepare the grand project. This project is on the Study of Consumer Buying Behaviour at Time to Purchase Bajaj Bike. I have analyzed the industry very deeply and carefully project. One can know about the current scenario of the Indian Two wheeler industry in India. This project enables the reader to have a look at the position of the Two Wheeler companies of the country. Acknowledgement I wish to take this opportunity to express my deep sense of gratitude to Dr. D. G.

Borse, Director, ACPCE, MS & R for his invaluable guidance in this endeavor. He has been a constant source of inspiration and I sincerely thank him for his suggestions and help to prepare this project. I express my sincere thanks to Dr. N. Mahesh, HOD, ACPCE, MS & R for his valuable suggestions and for assisting me in the data compilation and analysis which helped me a lot in fine tuning my report. I would like to express my gratitude to all those who gave me the opportunity to complete my internship at Bajaj Auto Ltd.

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I am deeply indebted to my supervisor Mr. Tushar Pawar, Senior Analyst, Bajaj Auto Ltd. my corporate guide, for his kind help and support and his valuable guidance throughout my project. I am thankful to his for providing me with necessary insights and helping me out at every single step. Finally, I would like to thank my family members and friends for their Co-operation, advice and encouragement during the long and arduous task of carrying out the project and preparing this project. Sagar Dhoble Declaration I hereby declare that the project entitled "Study of Marketing Research On Bajaj Bike” at Bajaj Auto Ltd has been prepared by me under the guidance of Dr. N.

Mahesh, HOD, ACPCE, MS & R, in partial fulfillment of the requirement for the award of the degree of masters of management. I also hereby declare that this project report is the result of my own efforts and has not been submitted at any time to any other university or institute for the award of any degree or diploma. The present is the era of customers. Customers are more knowledgeable than ever before & because the customer is more knowledgeable companies must be faster, more agile and more creative than few years ago.

So companies should strive to enhance customer satisfaction through knowing their expectations regarding products. It can be concluded on the basis that market research must be used to find out whether customer’s expectation are being met by current products or services. Consumer perception is based on the images consumers have of the organization and its products, this can be based on value for money, product quality, fashion and products reliability. This is anticipating future trends and forecasting for future sales.

This is vital to any organization if they wish to keep their entire current market share and develop more. Generating income or profit principle clearly states that the need of the organization is to be profitable enough to generate income or growth and satisfying the customer is a big part of companies plans they also need to take into account their own needs. For making satisfactory progress an organization need to make sure that their product is developing along with the market, if a product is developing well , then income should increase, if not then the marketing strategy should be revised.

An organization should always know what is happening within their designated market, if it is changing, saturation, technological advances, slowing down or rapidly growing, being up to date on this is essential for companies to survive. There are also certain external factors that a company should be very aware of such as P. E. S. T factors i. e (political, environmental, social and technological) and S. W. O. T i. e. (strength, weakness, opportunity, and threat). A business must take into account all these constraints when Designing and introducing a marketing strategy.

Marketing Research On Bajaj Bike

The History of the automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for wind-driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels. Vaturio designed a similar vehicle that was also never built.

Later Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in China and the interaction of two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered vehicle was created. A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-powered vehicle for the Chinese Emperor Chien Lung in about 1678.

There is no information about the vehicle, only the event. Since James Watt didn’t invent the steam engine until 1705, we can guess that this was possibly a model vehicle powered by a mechanism like Hero’s steam engine-a-spinning wheel with jets on the periphery. Although by the mid-15th century the idea of a self-propelled vehicle had been put into practice with the development of experimental vehicles powered by means of springs, clockworks, and the wind, Nicolas-Joseph Cugnot of France is considered to have built the first true automobile in 1769.

Designed by Cugnot and constructed by M. Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnot’s three-wheeled steam-powered vehicle carried four persons and was meant to move artillery pieces. It had a top speed of a little more than 3. 2 km/h (2 mph) and had to stop every 20 minutes to build up a fresh steam. Evans was the first American who obtained a patent for “a self-propelled carriage. ” He, in fact, attempted to create a two-in-one combination of a steam wagon and a flat-bottomed boat, which didn’t receive any attention in those days.

During the 1830’s, the steam vehicle had made great advances. But stiff competition from railway companies and crude legislations in Britain forced the poor steam vehicle gradually out of use on roads. Carl Benz and Gottlieb Daimler, both Germans, share the credit of changing the transport habits of the world, for their efforts laid the foundation of the great motor industry, as we know it today. First, Carl Benz invented the petrol engine in 1885 and a year later Daimler made a car driven by motor of his own design and the rest is history.

Daimler’s engine proved to be a great success mainly because of its less weight that could deliver 1000rpm and needed only very small and light vehicles to carry them. France too had joined the motoring scenario by 1890 when two Frenchmen Panhard and Levassor began producing vehicles powered by Daimler engine, and Daimler himself, possessed by the automobile spirit, went on adding new features to his engine. He built the first V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form of sparking plug.

Charles Duryea built a motor carriage in America with petrol engine in 1892, followed by Elwood Haynes in 1894, thus paving the way for motorcars in that country. For many years after the introduction of automobiles, three kinds of power sources were in common use: steam engines, gasoline or petrol engines, and electric motors. In 1900, over 2,300 automobiles were registered in New York, Boston, Massachusetts, and Chicago. Of these, 1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars.

In ten years from the invention of the petrol engine, the motorcar had evolved itself into amazing designs and shapes. By 1898, there were 50 automobile-manufacturing companies in the United States, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the manufacture of automobiles with his assembly- line style of production and brought out the Model T, a car that was inexpensive, versatile, and easy to maintain. Herbert Austin and William Morris, two different carmakers, introduced mass production methods of assembly in the UK, thus paving the way for a revolution in the automobile industry.

Austin Seven was the world’s first practical four-seater ‘baby car’ which brought the pleasures of motoring to many thousands of people who could not buy a larger, more expensive car. Even the ‘bull-nose’ Morris with front mounted engine became the well-loved model and one of the most popular cars in the 1920s. Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of Ford and other pioneers. Cars were generally large, and many were still extremely expensive and luxurious; many of the most collectible cars date from this time.

The increased affluence of the United States after World War II led to the development of large, petrol-consuming vehicles, while most companies in Europe made smaller, more fuel-efficient cars. Indian Automobile – History India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole 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 in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API, it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India.

It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to foreign competition in themid-80s. And then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures.

With the 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 motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.

The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1. 9mn vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners.

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. mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in company either reporting losses or a fall in profits.

India is one of the very few countries manufacturing three-wheelers in the world. It is the world's 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 is shared by Bajaj Tempo, Greaves Ltd and Scooters India. The total number of registered two-wheelers and three wheelers on road in India, as on March 31, 1998 was 27. 9mn and 1. 7mn respectively. The two wheeler population has almost doubled in 1996 from a base of 12. 6mn in 1990.

About Bajaj

The Bajaj Group came into existence in 1926, during the turmoil and the heady euphoria of India’s freedom struggle. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan Bajaj, the eldest son of Jamnalal Bajaj, at the age of 27, he took over the reins of business in 1942.

Putting the Nation before business, he devoted himself to the latter only after India achieved independence in 1947 and then after he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities, elevating the group to the status it enjoys till this day. At present Chairman and Managing Director of the group, is Rahul Bajaj, took charge of the business since 1965 and is recognized as one of the most outstanding business leaders in India.

As dynamic and ambitious as his illustrious predecessors, he has been recognized for his achievement at various national and international forums. Bajaj is currently India’s Largest Two and Three Wheeler manufacturer and one of the biggest in the world. Under Rahul Bajaj’s leadership, the turnover of the Bajaj Auto the flagship company has gone up from Rs. 72 million to Rs. 46. 16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market.

He is one of India’s most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit.

There are many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of customer on whether, what, how, and for whom to purchase the motorcycle. Therefore, research is required to measure present consumer buying behavior at the purchase of Bajaj bike. So the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the motorcycles.

As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad multi-dimensional concept that embraces numerous aspects such as price, quality, productivity, efficiency and macro-economic environment. There are numerous studies on auto industry in India, published by industry associations, consultancy organizations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are eviewed, under different heads pertaining to global comparisons, fiscal and trade policies and evolution of the Indian auto industry and other aspects.

The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader.

Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s. There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). ICRA (2004) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry.

ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries.

The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost advantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand.

Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of India’s automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth.

The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L. K. Jha Committee report in 1960 was a major event that took place towards the end of this phase.

During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 1960s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalization and opening up of FDI in the auto sector.

These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers. 7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular.

However, D’Costa (2002) argues that MUL’s success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. D’Costa has other criticisms about Pingle (2000) The major shortcoming of Pingle’s study is that it ignores the issues related to sectors pecific technologies and regional differences across the country.

In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million people, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components.

Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for R;D. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential.

The policy recommendations of this study include VAT implementation, lower indirect taxes, power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, R;D incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner.

ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the autocomponent firms in India. ACMA (2006) notes that India’s joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects.

Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Unlike the prediction by Narayanan (1998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime.

Marketing research is the function which links the consumer, customer and public to the marketers through information used to identify and define marketing, opportunities and problems, generates refine marketing action; monitor marketing performance and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues; designs the method for collection information manages and implements the data collection process; analysis the results and communication the findings and their implication.

Research is careful inquiry or examination to discover new information and relationship and to expand and to verify exiting knowledge” Research always starts with questions or a problem. Its purpose is to find answer to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies.

“Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to research question and to control variance. ” From definition it is evident that research design is one or ess a blueprint of research. At the outset may be noted that there are several ways of studying and tackling a problem. There is no signal perfect design. The research design can be classified in to true broad categories: (A) Exploratory (B) Descriptive (C) Casual Exploratory research is focus on the discovery of ideas.

Exploratory research is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading available. It does not have to change his focus of direction, depending on the availability of new ideas and relationship among variables.

Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a high degree of scientific skill on the part of the researcher. Casual research helps in determined cause and effect relationship. Between two or more variables. The present study seeks to find out the consumers attitude towards buying of bike. The study also aims at findings out the drawbacks of the marketing set up of BAJAJ AUTO LTD. So this makes the study a descriptive one.

The sources of data collection methods are as follows. Primary data i. e. ollected for the first time. It is fresh and originally collected by the surveyor. I will used only primary data in calculating the study and collect the data. Secondary data are those data which are already collected by someone for some purpose and are available for the present study; secondary data are already collected by the company‘s records and other library‘s books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire.

While making an analysis, Primary data represents a true and correct picture of subject to be studied as compared to the secondary data, which is second hand ; has become obsolete. So to know about the current situation of the market and actual facts, collection and analysis of primary data is of significance. We have presented the “Research findings on the basis of Primary Data” collected through a survey conducted with the help of questionnaires of customers of Pune City. The questionnaire contains three types of questions.

It is helpful in knowing what is uppermost in the mind of the respondents. It gives complete freedom to the respondent.

The Suggestions that are given by Customers and we give suggestions as a market researcher for Improving in a service. Because after selling of a vehicle customer may has some of the problem and customer come for solve their problem through service and company should try to give proper service to satisfy customer by solving their problem.

Bibliography

1. Kotler, Philip 2002,PHI(I)P. ltd, Marketing management
2. Kothari, C. R. 2001,Himayalayan Publications, Research Methodology

Magazines and News papers

1. Auto car India
2. Business Today
3. Business World
4. Business India
5. Economic Times
6. The Hindu
7. India Today

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