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Business Research Methods

Problem

During June quarter, realization of the two-wheeler maker declined 1.3 per cent
YoY (-6.6 per cent QoQ) due to a higher share of entry-level two-wheelers. On the
other hand, raw material cost was higher by 140 bps, largely due to an adverse
product mix and commodity cost inflation.

For the Hero MotoCorp stock. In the last three sessions, the stock has lost nearly
10 per cent. Mahindra Auto slipped for the second session in a row and has erased
nearly 14 ..

It is not the scenario that Hero Moro Corp is falling, every stock is falling even
how strong there fundamentals or past results were.
It’s a simple rule of economics-
HIGH DEMAND - LOW SUPPLY- HIGH PRICE

LOW DEMAND - HIGH SUPPLY - LOW PRICE

With FIIs (smart money) selling because Rupee is continuously falling compared
to dollar , also DIIs (smart money) are not able to offset there selling which led to
panic in retail investor and they are also now in sell mode.

Also with Increasing of bad debts with Banking and Financial sector and low
recovery of debts leads to tightening of liquidate funds available with the banks
and financial sector which in return leads to weakening of economy and no one
wants to invest in weak economy.

All this led to Low Demand in market for everything, people are going towards
risk free investment and not towards Stock Market.

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Hypothesis Problem Statement:
Is the market share of Hero going to match up with that of Competitor Mahindra Motors?
H0: µA= µB
µA= Market share of Hero MotoCorp
µB= Market share of Mahindra Motors
Data:
Market Share in Percentage
(%)
FY Hero MotoCorp Mahindra Motors
2011 16.67 13.05%
2012 16.31 12.56%
2013 18.81 14.22%
2014 19.15 15.26%
2015 16.69 12.55%
2016 16.27 13.33%
2017 14.1 12.18%
2018 13.15 13.00%

Results:
Variable Variable
1 2
Mean 12.39375 0.132688
Variance 4.200684 0.000103
Observations 8 8
Hypothesized Mean
Difference 0
Df 7
t Stat 8.4403
P(T<=t) one-tail 4.41-08
t Critical one-tail 1.894579
P(T<=t) two-tail 8.83-08
t Critical two-tail 2.364624

Interpretation:
We reject the null hypothesis as the value of P is small. So, we can say that the market share of
Hero to that of Mahindra cannot be same.

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Literature Review:
According to M Abdul Haneef, two wheeler industry has recorded a significant
change in the past few years. The market of motorcycles is increasing with the
exponential pace as compared to last few years. According to him, hero moto Corp
is the leading motorcycle company in India which creates its brand value. On the
other hand the popular brand have reduced their entry level motorcycles in order to
capture big market share.
According to Sharma, hero moto cop. Have more market share as compared to
other two wheeler categories in India. Hero moto Corp. have different styles and
use updated technology which gives competitive advantage to the company.
Sharma, also said that Mahindra is one of the renowned company in the market.
This company have good amount of market capitalization in the field of
automobiles but Mahindra have less market share if we talk about two wheeler
segment.
According to Neelam Duggal, Mahindra moto Corp have fluctuations in its market
share in the segment of two wheelers. The company have different models in its
two wheeler segment which are made for the need and desire of its target audience.
But, due to red ocean competition, there are number of other competitors who
provide their services to the customers which reduces the market share of
Mahindra motors.
According to Rahul Trivedi, hero and Mahindra both have its huge customer base
in India. Hero moto Corp have the competitive advantage which occurred due to
stylish and mainly focus on mileage of the two wheelers which are mostly liked by
the customers. On the other hand Mahindra have its models which provides
different features and looks to its customers which are new in the market.
According to Sailaja’s Indian two-wheeler industry is the world’s largest market in
volume of production. There are number of players which are available in this
market. These are Royal Enfield, Suzuki, Yamaha, Hero moto Corp, Mahindra,
HMSI and many more. Mahindra two wheeler tie up with different partners to
promote its brand. Its main focus is on increasing the dealership in the country so
that it will become easy for customer for Mahindra’s two wheeler accessibility. On
the other hand, hero moto Corp have the strategy of robust product portfolio across

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categories, in addition \to this it also improve its operational efficiency to reach its
customers and improve its brand image in the market.
According to Isha Gupta, it is the competitive era where expansion becomes
necessary for the two wheeler companies. Hero moto Corp have technological
innovative products which are new in the market and these products are
responsible for the high market capitalization as compared to its other
comopetitiors, I her reaserch paper it is also mentioned that Mahindra two wheeler
is not as good as other brands due to not attractive products but the quality of
Mahindra products is excellent and creates value creation to the customers.
According to M Subhadip Roy, people use motor wheeler for their personal
transportation. People want more mileage motorcycle which does not affect their
pockets. The some of the features which customers want in the motorcycles fuel
economy, reliability, maintenance, affordability and reasonable cost of the vehicle.

This is the latest graph which shows the comparison between hero moto Corp and
Mahindra in the two wheeler segment. Blue line is of hero moto Corp and red
denotes to Mahindra two wheeler se4gment. It is clear that hero moto Corp is far
ahead as compared to Mahindra.

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Tableau

In this graph, we can interpret that these are two pie charts made on tableau. In first pie chart we
can see that it shows the market share of Hero Moto Corp. of different years. In this, the highest
percentage is 19.15% which is in 2014 and lowest in the year 2017 which is only 14.1%
On the other hand, second pie chart shows the market share of Mahindra two wheelers. Mahindra
motors have good market share in the year 2013 which is 14.22% and lowest in the year 2017
which is 12.18%.

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SPSS
Descriptive Statistics

N Range Minimu Maximu Mean Std. Varian Skewness Kurtosis


m m Deviation ce

Statisti Statisti Statistic Statistic Statisti Std. Statistic Statisti Statisti Std. Statisti Std.
c c c Error c c Error c Error

Hero_MotoC
8 6 13 19 16.38 .754 2.134 4.554 -.300 .752 -.653 1.481
orp
Mahindra_Mo
8 3 12 15 13.25 .313 .886 .786 1.026 .752 1.851 1.481
tors
Valid N
8
(listwise)

Correlations

Hero_MotoCorp Mahindra_Motor
s

Pearson Correlation 1 .774*

Sig. (2-tailed) .024

Sum of Squares and Cross-


Hero_MotoCorp 31.875 10.250
products

Covariance 4.554 1.464

N 8 8
Pearson Correlation .774* 1

Sig. (2-tailed) .024


Sum of Squares and Cross-
Mahindra_Motors 10.250 5.500
products

Covariance 1.464 .786

N 8 8

*. Correlation is significant at the 0.05 level (2-tailed).

In this table we can see that with the change in hero moto corp market share with 1% then
Mahindra have the change with 0.77% of market share.

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Descriptive Statistics

Mean Std. Deviation N

Hero_MotoCorp 16.38 2.134 8


Mahindra_Motors 13.25 .886 8

In the eight years the means of hero moto corp is of 16.38 on the other Mahindra have the mean
of 13,25.

Correlations

Hero_MotoCorp Mahindra_Motor
s

Correlation Coefficient 1.000 .792*

Hero_MotoCorp Sig. (2-tailed) . .019

N 8 8
Spearman's rho
Correlation Coefficient .792* 1.000

Mahindra_Motors Sig. (2-tailed) .019 .

N 8 8

*. Correlation is significant at the 0.05 level (2-tailed).

Conclusion: in the conclusion we can see that the hero moto corp have the good market
capitalization as compared to Mahindra two wheeler company. Hero moto have the good brand
value and uses innovative technology for the manufacturing of their two wheeler segments. Ion
the other hand Mahindra is also the one of the reputed brand in the market but it ha\s less market
capitalization as compared to her moto corp.

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