A RESEARCH PROJECT REPORT ON CONSUMER BEHAVIOUR TOWARDS 150CC BIKES (KARNAL)

AT

RPIIT, KARNAL

Submitted in partial fulfillment of the requirement For the award of degree Of MASTERS OF BUSINESS ADMINISTRATION SESSION (2011-2013)

SUBMITTED TO: Kurukshetra University , Kurukshetra

SUBMITTED BY:Deepak Kumar MBA 4 TH Sem. College Roll No. M-1104 University Roll No.-

R.P. Inderaprastha Institute of Technology

Bastara, Karnal

ACKNOWLEDGEMENT It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior, and acts during the course of

study. I express my sincere gratitude to Dr. Sorabh Gupta, worthy Principal for providing me an opportunity to undergo winter research at RPIIT COLLEGE, KARNAL. I am thankful to Mr. Pardeep Singla for his support, cooperation, and motivation provided to me during the training for constant inspiration, presence and blessings. I also extend my sincere appreciation to Mrs. ..Head, Department of Management, R.P. Inderaprastha Institute of Technology, Bastara (Karnal)who provided his valuable suggestions and precious time in accomplishing my project report. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

(Deepak Kumar)

DECLARATION I, Deepak Kumar, student of MBA 4th Semester, studying at , R.P. Inderaprastha Institute of Technology, Bastara (Karnal) hereby declare that the winter research report on CONSUMER BEHAVIOUR

TOWARDS 150CC BIKES submitted to Kurukshetra University, Kurukshetra in partial fulfillment of Degree of Masters of Business Administration is the original work conducted by me.
The information and data given in the report is authentic to the best of my knowledge.

This summer training report is not being submitted to any other University for award of any other Degree, Diploma and Fellowship.

(Deepak Kumar)

PREFACE

In this age of globalization hyper competition has become a regular feature. Today the markets are no less then battlegrounds and one has to strive very hard for survival and growth. Due to very rapid industrialization all over the world the demand for the managerial personnel and the administrative personnel has increased. The perfect study of Management involves both the theoretical as well as practical aspects. To survive in this highly competitive market Practical Knowledge is as relevant as the Theoretical. The significance of MBA Degree is that the Theoretical aspects, which a student learns throughout the year in the class sessions, can be practically applied through different projects, which one undertakes. Keeping in tune with this doctrine, we have tried to apply theoretical aspects throughout the project, which we learned under the course of management. In this project more emphasize given to the various tools of Marketing Research. Actually in recent trend to some extent this technique also become victim of clutter, even though it can be eliminated by generating innovative and more attractive tools to lure the customers.

TABLES OF CONTENTS 1 2 3 Introduction ( meaning, objective, scope, limitation) 2.1 Review of literature 2.2 research methodology Data collection

INTRODUCTION TO AUTOMOBILE

Throughout the centuries man has striven to expand his capabilities through the use of machine. His ever inventive mind has constantly devised ways to use tool to increase his abilities to explore the world around him. To go faster, deeper, higher and further than before was it. Coupled with his need to find new thrills, new adventures and new modes of transportation, the invention refinement of the motorcycle seems an inevitable outcome.

It would seem that Michelangelo conceived of the bicycle as early 14th century. And his drawing shows a remarkable resemblance to the modern day bike. It had wheels of similar size and even pedals and chain. Albeit made without any apparent means of steering.

Through never built, it was a remarkably clever design, and early bicycle makers would have done well to study his concepts, there have, in fact been 4 machines built based on his drawing, attesting to the viability of his design.

It wasnt until 1869 that the first serious attempts were made to produce motor driven bicycles These very first were powered by steam, and driven by leather belts or as in the case of the roper steam velocipede of 1869 by a system of levers attached to a crank on the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or motor bicycle, as it was the first to employ an internal combustion engine and was designed from the ground up to be motor powered. Designed by gottlibe Daimler it was powered by an Otto cycle engine producing about horse powers. Note this design again employed wooden wheels and Daimler dropped the twist grip controls from his 1877 design in favor of leavers on the frame.

In 1894, Hildebrand and Wolfmuller, France Worlds produce first motorcycle. It came with a 1428 cc water cooled four-stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production motorcycle was this entry built by the Metz Company, in Waltham, mass, it used an aster engine that was a French copy of the Metz Company, in Waltham, mass.

Two wheelers in India

Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth over the years. Now owing a bike has become a must for most Indians. Even if people own a car they prefer to have a bike as it is very economical and fuel efficient.

With the growth in the economy the demand for two wheelers is increasing over the years. It is one of the most dynamic industries today and with the increasing competition companies are bringing in new products with sophisticated technologies and innovative features to capture a major pie of the Indian market and its the consumer who is benefited from it..

With the availability of reduced consumer loans and high disposable income the Indian two-wheeler industry has perceived an exceptional growth over the past few years thereby making India the second largest market for two wheelers in the world only after China.

The motorcycle has now become one most popular mode of transportation among the Indian middle class families because of it is cost effective, economical and easy to navigate through the traffic. Moreover, the people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the Indian two wheelers. Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike manufacturer in the world, Hero is in close competition with the Indian manufacturer Bajaj India.

The motorcycle industry in India has witnessed a tremendous change in the 90s with the invention of 4 stroke engine which makes the bikes more fuel efficient. Further companies are trying to bring in more innovations to make the motorcycle ride more comfortable, safe and user friendly and economical.

In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in India

Easy accessibility to cheap consumer loans The increase in the average income of the family. The reduction in duties and taxes.

Convenience with regards to commuting as compared to the public transport system. Continuous innovations in technology making the bikes economic and fuel-efficient.

OBJECTIVE OF STUDY

To ascertain consumers awareness about various brands and models of bikes. To identify the factor which influence the buying behavior while selecting a particular bikes of 150 cc?

CONSUMER

Everybody in this world is a consumer. We need a variety of goods and services right from our birth to death. All consumers are buyers and all buyers are not consumer. Then who are the consumer buyers and how they behave while purchasing a particular product is very important for marketers. Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buys services and goods for personal consumption. Consumer behavior is influenced strongly by culture, social, personal and psychological factors. Culture factors include the set of basic values, perceptions, wants and behavior learned by a member of society from family and other important institutions. The social factors include consumers family, small group, social roles and status. The personal characteristics such as buyers age, life cycle stage, occupation, economic situations and life style influenced by four major psychological factors: Motivation, Perception, Learning, Belief and Attitudes. By keeping in view the importance of consumer behavior, the present study deals with the consumer buyer behavior of two wheelers.

Increasing urbanization, higher disposal incomes, falling interest rates and poor public transport lead to increase in the volume of two-wheelers, 10 percent increase year after year for the past one decade.

In this era of cut throat competition, no company can even survive in the market place without knowing it and its products strengths and weaknesses. It has to fortify itself against threats from the environment and exploit its strengths or increase profits. And in order to do so, the company has to conduct regular surveys to know the customers opinions, needs, and preferences. This helps the company to manufacture the product like wise for each customers expectations.

It has now become more important for the customer confidence and higher positioning of buyer perception. Thus, Surveys becomes genuine key to success.

Consumers Behavior

Consumers Behavior can be defined as "The behavior that consumer display in searching for, punching, using, evaluating and disposing of products & service that they expect will satisfy their needs. The decision process and physical activity individuals engaging when evaluating, acquiring using or disposing of goods and services. A consumer plays a no of roles in purchase decision. The study of consumers behavior would be incomplete if it treated only one consumer role. Some consumers Behavior role are :-

ROLE

DESCRIPTION

Initiator: -The individual who determines that some or need or want is not being met & authorize to rectify the situation. Influencer:-A person who by some intentional or unintentional word or action influences the purchase decision, the actual purchase and the use of the product or service. Buyer:-The individual who actually makes the purchase transaction. User:-The person most directly involved in the consumption or use of purchase.

Thus, the importance of CB lies in the fact that behavior can be understand & influenced to ensure a positive purchase decision. So, a round understanding of CB is essential to the long run success of any marketing program. In fact, it is seen as a cornerstone of the marketing concept. That's why the marketing managers interest lies exactly to ensure that his marketing strategy result in purchase of the product.

THE CUSTOMER BUYING PROCESS

Miller and Layton define a Buying-decision process as the series of logical stages, which differ for consumers and organizations that a prospective purchaser goes through when faced with a buying problem. The stages of the buying decision process is:

1. Needs recognition: the consumer is moved to action by a need.

2. Identification of alternatives: the consumer identifies alternative products and brands and collects information about them. Product and brand identification may come from a simple memory scan of previous experiences to an extensive external search.

3. Evaluation of alternatives: the consumer weighs the advantage and disadvantage of alternatives identified. The evaluation may involve a single criterion, or several criteria, and then compare each alternative. For example, you might select a frozen dinner on price alone or on price, taste, and ease of preparation.

4. Purchase and related Decision: the consumer decides to buy or not to buy and makes other decision related to the purchase. If the decision is to buy, a series of related decisions will be made, such as where and when to make transaction, how to order or take delivery, the method of payment and other issues.

5. Post-purchase behavior: the consumer seeks reassurance that the choice make was the correct one. What a consumer learns from going through the buying process has an influence on his next time purchase.

After we identify the customer buyingdecision process, we should know there are some important factors that influence it, such as information, social factors, psychological factors, and situational factors. INFORMATION AND PURCHASE DECISIONS

Purchase decisions require information. Customers should know what products and brands are available, what features and benefits they offer, who sells the products at what prices and where they can be purchased. Miller et al argue that there are three sources of buying information personal sources, commercial sources, and public sources.

Personal sources: include family members, friends, and members of consumers reference group.

Commercial sources: refer to the information provided by service providers, marketers, and manufacturers and their dealers. It bears noting that Advertising is the most familiar type of commercial information.

Public sources: include non -commercial and professional organizations and individuals that provide advice for consumers, such as doctors, lawyers, government agencies, travel agencies.

THE CONSUMER BUYING DECISION PROCESS AND THE FACTORS THAT INFLUENCE IT.

It should be mentioned that advanced technology provides the opportunity to reduce the costs of searching for information. This makes it easier for customers to make informed decisions.

Social and group forces influence the customer buying decision process The social influences affecting consumers purchase decisions include culture, subculture, social

class, reference groups, and family.

Culture is the set of beliefs, attitudes, and behavior patterns shared by members of a society and transmitted from one generation to the next. Cultures do change over time. Marketing managers must be alert this changes so that they can adjust their planning to follow it. For example, in some cases, time has become as valuable as money. Australian consumers increasingly require time - saving services (such as fast food) and labour -saving products (such as frozen dinners).

Reference groups: includes a variety of groups that affect consumer behaviors through normative compliance. It should be mentioned that the family is a reference group.

Social class: is a ranking within a society determined by the members of the society. Miller et al argue that peoples buying behavior is often strongly influenced by the class they belong to. Such as the upper class, they usually like to buy expensive goods and services.

Psychological forces impact on the customer buying decision process. Motivation, perception, and attitudes all affect the customer buying decision process. Motivation: Maslows hierarchy of needs is a popular theory on understanding human motivation theory. With a greater understanding of motives, marketers are better prepared to design attractive value propositions.

Perception: is the process by which a person selects, organizes, and interprets information. A consumers personality encompassing their particular needs, attitudes, belief, and past influences buying decisions. The features of the message and the way it is communicated also influence consumers perception.

Attitude: is a positive and negative feeling about an object. Attitudes are learned. They are formed as a result of direct experiences with a product or an idea, indirect experiences. Attitudes have direction and intensity. Our attitudes are either favorable or unfavorable toward objects. They cannot be neutral. For example, you may mildly like something, or like it very much. This factor is important for marketer cause both strongly favorable and strongly unfavorable attitudes are difficult to change. Finally, attitudes tend to be stable and general sable. When people formed their attitude, it should endure. The longer they are held, the more resistant to change they are.

Situational factors. As Miller et al state that situational influences are a temporary force, associated with the immediate purchase environment, effecting behavior. Encompasses factors such as when consumers buy, where consumers buy, and how consumers buy.

MOTORCYCLE

The motorcycle segment is dominated by major players viz. HERO, BAJAJ, TVS, HONDA and SUZUKI. The market share of each of the player is as given below. Near 70% of the motorcycle sales is from Indi-Japanese motorcycles and rest coming from Indian motorcycle manufacturers. The Indo-Japanese segment is catered by 4 to 6 models from each of the players viz. HERO, BAJAJ, TVS, HONDA and SUZUKI etc. But majority of sales is of 100cc to 125cc motorcycles. The Indo-Japanese motorcycles are costlier due to import content and royalty payments to their Japanese collaborations.

The expanding Indian market, the growing size of the middle class and the rise in aspirations of the youth along with opening up of the Indian economy have collectively influenced the steady growth of the two wheeler market in India. With leading foreign brands in collaborations with Indian manufacturers entering the Indian market, the customer could not have asked for more. In fact, the Indian bike market has grown immensely and the preference for variety looks, design has brought in a number of models in the market. In the last 2 to 3 years, the craze for motorcycle over the scooters Has picked up and one can find today even girls craving for a motorbike. Not only in the Metros but in small towns and cities also.

Trying to catch up with these, manufacturers are busy working out customer profiles. With the competition hitting up one can find a host of discounts including: cash rebates and free accessories to push sales of the commuter bikes. Certain changes are also visible as far as customer preferences are concerned. The basic 100cc bike market is suddenly experiencing a slowdown in the growth. This Commuter bike was a favorite till the other day commanding up to 90% of the total bike sales. The shift towards 100cc plus bikes is suddenly discernable and the segment is expected to double in the next year itself.

Manufacturers are now rushing in to introduce bikes in this segment. But its not yet end of the road for the basic entry-level bike. We are witnessing segmentation in the bike market, like the Bike market. The entry level model will continue to be a high-interest segment for the aspirants.

Against this backdrop, the present project work has been undertaken. With the focus of the consumer shifting to brand and product features, the project is a study aiming at understanding what does a customer wants from Power segment bikes(150cc & plus).In todays challenging & competitive world of fast changing technology, consumer tastes are also characterized by fast changes. So, to survive in the market, a firm has to be constantly innovating and understand the latest, consumer trends, tastes and preference. Consumer behavior provides invaluable dues and guidelines to market on new technological frontiers, which they should explore. It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles. To better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which he can design only when he can understand the factor, which account for these difference in consumers behavior.

The most important reason for studying consumer behavior is the significant role it plays in our lives. It plays a vital role in decision-making. As consumer significantly affected certain decision's behavior or expected actions. So, consumer behavior is said to be an applied discipline.

Such applications can exit at two different levels of analysis.

Micro Perspective Societal perspective

The micro perspective involves understanding consumers for the purpose of helping a firm or organization accomplish its objectives.

The societal perspective can provide insight into aggregate economic & social trends and can perhaps even predict such trends. It may suggest ways to increase the efficiency of the market system & improve the well being of people in society.

Major Players and Products Offered

As India is very potential market for two-wheeler. There are a number of players competing with one another. In the mean time, there are 5 major players fighting for an approx. two wheelers market of 50.18 lakh two- wheelers annually. The structure of the industry has changed during the last decade with a number of small companies being taken over by major players. But, the competition has just begun to hot up with coming up of MNCs. The major players are as follows:

1)

HERO

Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero Moto Corp Ltd. continues to maintain this position till date.

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero Moto Corp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.

Mission
Hero Moto Corp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Strategy
Hero Moto Corp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight.

PRODUCTS

PASSION X PRO IGNITOR IMPULSE HF DAWN HF DELUXE SPLENDER + SPLENDER NXG SPLENDER PRO SUPER SPLENDER GLAMOUR ACHIVER HUNK KARIZMA KARIZMA ZMR XTREME

150 cc bike of Hero Moto Corp

2)

BAJAJ

The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. Founded in 1926, at the height of India's movement for independence from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and determination to succeed which are characteristic of the group today, are often traced back to its birth during those days of relentless devotion to a common cause. Jamnalal Bajaj, founder of the group, was a close confidant and disciple of Mahatma Gandhi. In fact, Gandhiji had adopted him as his son. This close relationship and his deep involvement in the independence movement did not leave Jamnalal Bajaj with much time to spend on his newly launched business venture. His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942. He too was close to Gandhiji and it was only after Independence in 1947, that 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. The present Chairman of the group, Rahul Bajaj, took charge of the business in 1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has found a global market. He is one of Indias most distinguished business leaders and internationally respected for his business acumen and entrepreneurial spirit

PRODUCTS

AVENGERI PULSAR DISCOVER PLATINA NINJA

3.TVS

TVS is also a leading two-wheeler company began under with the vision of the founder of the Sundaram Clayton Group the late Mr. T.S.Srinivasan to design, develop and produce an affordable moped for the Indian family. TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual turnover of more than USD 1 billion in 2008-2009, and is the flagship company of the USD 4 billion TVS Group.The company has 4 plants - located at Hosur and Mysore in South India, in Himachal Pradesh, North India and one at Indonesia. The company has a production capacity of 2.5 million units a year

TVS Motor's strength lies in design and development of new products - the latest launch of 7 products on the same day seen as a first in automotive history. We at TVS deliver total customer satisfaction by anticipating customer need and presenting quality vehicles at the right time and at the right price. The customer and his ever changing need is our continuous source of inspiration.

TVS has always stood for innovative, easy to handle, environment friendly products, backed by reliable customer service. No wonder, then, that our 15 million customers on the road have a reason to smile PRODUCTS

APACHE RTR FLAME JIVA MAX 4R PHOENIX STAR CITY STAR SPORTS

4.SUZUKI SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED is a subsidiary of Suzuki Motor Corporation, Japan where in we are having the same manufacturing philosophy of VALUE PACKED PRODUCTS right from the inception. SMIPL will be manufacturing two wheelers best suited for the valuable Indian customers covering all segments Suzuki Motor Corporation is a Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal combustion engines. Suzuki is Japan's 4th largest automobile manufacturer after Toyota, Nissan and Honda, the 9th largest automobile manufacturer in the world by production volume, employs over 45,000, has 35 main production facilities in 23 countries and 133 distributors in 192 countries. According to statistics from the Japan Automobile Manufacturers Association (JAMA), Suzuki is Japan's second-largest manufacturer of small cars and trucks.

PRODUCTS

Gs 150 Hayate Sling shot

5.HONDA Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than 14 million internal combustion engines each year. Honda surpassed Nissan in 2001 to become the second-largest Japanese automobile manufacturer. As of August 2008, Honda surpassed Chrysler as the fourth largest automobile manufacturer in the United States. Honda was the eighth largest

automobile manufacturer in the world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor Group, Ford, Nissan, and PSA in 2011. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2012. Honda invests about 5% of its revenues in research and development. PRODUCTS CB TRIGGER CB TWISTER CB UNICORN CB 1000 R CBR CB SHINE CB DREAM YOGA HONDA VFR

SCOPE OF STUDY To know about the consumer buying behavior and factor which Influence customer to purchase the product. To know about the consumer preference and decision. To know the market shares that the company holds. To know the factors which influence customer to making there purchasing decision To find the promotional channel which creates more awareness about the bike available in the market.

CHAPTER--2

REVIEW OF LITERATURE

To know about the consumer buying behavior and factor which As the objectives of my study is analyses the customer perception Customer Perception and Attitude towards selected brands of 150c.c. bikes on the basis of Price, Brand name and After sale services. Consumer buyer behavior refers to the buying behavior of final consumers individuals and households who buys services and goods for personal consumption. Consumer behavior is influenced strongly by culture, social, personal and psychological factors. Culture factors include the set of basic values, perceptions, wants and behavior learned by a member of society from family and other important institutions. The social factors include consumers family, small group, social roles and status. The personal characteristics such as buyers age, life cycle stage, occupation, economic situations and life style influenced by four major psychological factors:

Once the problem is formulated, the researcher undertakes an extensive literature survey related to

problem. The literature survey undertaken here includes books and different websites from the internet.

RSEARCH METHODLOGY SAMPLE DESIGN In this project, non - probability sampling has been used because sample is selected by own view and every item of universe has not equal chances of being selected. Under non- probability sampling, convenient sampling has been used because sample has been selected according to own convenience.

Sampling size: This refers to the number of person institution to be surveyed. Total sampling size of this study is 100

Sampling procedure: This refers to the procedure by which respondents should be chosen. This study is conducted on the basis of convenience sampling and judgment sampling.

Sampling Area: Karnal

SOURCES OF DATA: Primary Data: Primary data are those data, which is originally collected. It is of following types questionnaire, interview, observation etc. In this research data are collected through the Survey and Questionnaire . In this research we used primary data. Secondary Data: Secondary data are those data which are collected and which has been passed through statistical research. Reference

CHAPTER--3

DATA COLLECTIONS

Primary Data: Primary data are those data, which is originally collected. It is of following types questionnaire, interview, observation etc. In this research data are collected through the Survey and Questionnaire . In this research we used primary data. Secondary Data: Secondary data are those data which are collected and which has been passed through statistical research. Reference