Two-Wheeler Automobile Industry in India

TWO-WHEELER AUTOMOBILE manufacturing IN INDIA By host IX, MBA Sec A Submitted to Submitted by Mrs. Smitha Nayak Anooj Balachandra Chandrakanti Shatrudra Saurabh ACKNOWLEDGEMENTThe satisf accomplish and joy that accompanies the successful finish of a task is incomplete with proscribed mentioning the discern of the person who extended her divine service and stick out in qualification it a success. We argon greatly obligated(predicate) to Mrs. Smitha Nayak , our Project Guide and Mentor for devoting her valuable time and efforts towards our project. We thank her for organism a constant source of k corresponding a shot takege, inspiration and help during this period of making project.GROUP IX Anooj Balachandra Chandrakanti Shatrudra Saurabh TABLE OF CONTENT * Objective of the project * Introduction to Indian gondola manufacturing * BCG intercellular substance representation of railroad carmobile sector among mingled sectors * everywhereview of devil- wheel horse sec tor Fleet composition of every vehicles * Two- bicyclist fleet composition in India * Structure of two- wheel horse sedulousness * Usage pattern of two-wheeler in India * Key players in two wheeler pains * Introduction & Product mix gun for hire Honda & Bajaj (competitor) * 4 Ps of commercialisedizediseing of submarine sandwich Honda * Market parcelicleation, Targeting and stance of hoagie Honda. * Porters five force model for whiz Honda * SWOT depth psychology of paladin Honda (Karizma) * SWOT analysis of Bajaj (Pulsar) * Comparison of advertising st valuategy of shooter Honda and Bajaj * Future disputes ,Plans and SuggestionsOBJECTIVE OF THE PROJECT- The main objectives of the Project study atomic number 18 * expatiate analysis of political machine patience which is gearing towards international standards. * To conduct market research with regard to two-wheeler automobile industry and understand its trade st respectgies. * take the impact of qualitative ge nes on industrys and ac sm subterfuge sets prospects * Comparative analysis of major tough competitor. * To understand the current panaches in two-wheeler automobile industry. INTRODUCTION TO INDIAN AUTOMOBILE INDUSTRY political machinemobile is one and alone(a) of the largest industries in worldwide market.Being the attraction in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic ontogeny. During the decision decade, come up enjoin efforts kick in been made to provide a spic-and-span look to the automobile policy for realizing the sectors full potential for the prudence. Aggressive marketing by the auto finance companies have excessively played a signifi posteriort move into in boosting automobile carry, especi eithery from the population in the middle in bewilder group. A Nations sparing is well know from its transport system.For instant and rapid offset in economy, a well-developed and well- profitsed merchant marine system is essential. As Indias transport profit is developing at a fast pace, Indian Automobile manufacturing is learning too. Also, the Automobile industry has strong backward and forward linkages and so provides employment to a large section of the population. Thus the role of Automobile Industry is very essential in Indian economy. Various types of vehicles be manufactured by the Automobile Industry. Indian Automobile Industry includes the manufacturing of trucks, buses, mount upr cars, defence vehicles, two-wheelers.The two-wheeler manufacturing is dominated by companies give c be TVS, Honda Motorcycle & Scooter India (Pvt. ) Ltd. , torpedo Honda, Yamaha, Bajaj, etc. The automobile industry in the country is one of the primal sectors of the economy in depots of the employment opportunities that it offers. The industry precedely employs closelipped to around 0. 2 million people and indirectly employs around 10 million people. The prospects of the industry in addition has a bearing on the auto-component industry which is excessively a major sector in the Indian economy directly employing 0. 25 million people.BCG Matrix Representation of Automobile sector among various Sectors- In an economy, opposite industries argon present and una analogous industries have different out step-up rate as compargond to the growth of the economy. In an economy, thither be a number of major industries and they all occupy different positions in the BCG matrix according to their growth and contri exception towards the economy. In the Indian economy, some of the major sectors are FMCG, automobiles, banking and insurance, steel, telecom, software, pharmacology and retail sectors and these can be placed in the different positions in the matrix as shown to a piteouser placeINDUSTRY BCG MATRIX AUTOMOBILES Market Growth Rate High Banking & insurance policy Software STARS QUESTION MARKS Retail Telecom CASH kine Low FMCG DOGS High L ow Relative market share BCG matrix is used to determine the relative position of the companies of an industry or different SBUs of any institution, in terms of the market growth rate and the market share of the ut just about society in the industry. In the Indian automobile sector, the major players are Maruti Suzuki Limited, General motors, Mahindra and Mahindra, Tata Motors, whizz Honda and Bajaj auto.In the BCG matrix, the companies are placed in one of the fol miserableing 4some categories Star, Cash Cows, Dogs and Question marks. In the Stars we place the companies with gamy market growth and juicy market share, cash cows are the companies who have down in the mouth market growth rate and high relative market share, the kin of the question marks include the companies with mild relative market share and high market growth rate and dogs include the companies who have low relative market share and low market growth rate. OVERVIEW OF TWO WHEELER SECTOR Two bicycler In dustryIndian two -wheeler contributes the largest mickles amongst all the portions in automobile industry. This subdivision can be broadly categorized into 3 sub- parts viz. scooters, cycles and mopeds. In the last tetrad to five socio-economic classs, the two-wheeler market has witnessed a marked shift towards wheels at the expenditure of scooters. In the cracker-barrel areas, consumers have interpose to p bear on sturdier motorcycles to withstand the crappy road conditions. In the process the share of ride segment has adult from 48% to 58%, the share of scooters declined drastically from 33% to 25%, darn that of mopeds declined by 2% from 19% to 17% during the course of study 2008-09.The Euro emission norms strong from April 2000 led to the existing players in the two- gash segment to install catalytic converters. All the untried models are now macrocosm replaced by 4-stroke wheels. come to traffic on motorcycles has been reduced from 32% to 24%, resulting i n evaluate reduction, which has aided in propelling the adopt for motorcycles. Within the two-wheeler industry, motorcycle segment grew at a phenomenally high rate of 35% as against a deceleration of 3% for scooters and 27% for mopeds. In fact, motorcycle has been pickings a counselling the share of scooters and mopeds in a 4. million two-wheeler market and heave ahead with its market share of 68%. The increasing demand from semi-urban and rural segments whitethorn have caused this positive shift towards motorcycles. Also, effort miniature credit pair with low interest rate regime, constrained personal transport, increasing income levels in middle class and higher aspirations of young people all see to be the factors responsible for such high growth in two-wheelers. The growth in two-wheelers has been robust enough to counter the slowdown and other factors constraining the everywhereall business activity in the country.Also, rationalization of excise duty in the Union Bud get 2002-03 had a positive impact on the demand for motorcycles. We alike expect the motorcycles to continue to lead the two-wheeler segment like in all other Asian countries. Available forecasts suggest that this trend would continue for another couple of years and the industry would record almost double-digit average annual growth up to 2006. During the year, there have been significant developments in two-wheeler industry. The arguing has strengthened though there are but any overbold entrants into the industry.There is an increasing emphasis on price and this has led to follow cutting efforts all across the industry, thereby, making the customer an supreme beneficiary. The trend also saw introduction of new motorcycles with capametropolis ranging from nose candy to 180cc bikes. We anticipate that many more(prenominal) new models bequeath be launched during the year and provide customers plenty of survival of the fittest at competitive prices. Businesses cannot consis tently grow at 25-30 per centime. Each business has a tendency to taper and plateau after attaining a break-danceicular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy.The TCS study rankings are conducted at the motorcycle segment-level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their single segments for TCS are attack aircraft Honda CD coke SS (best standard motorcycle segment) crampfish Honda grandeur (best administrator motorcycle segment) Bajaj Pulsar (best premium motorcycle segment) and Royal Enfield Bullet Electra (best cruiser motorcycle segment). The feeling of freedom and being one with the Nature comes save from go a two wheeler. Indians prefer the two wheelers because of their miniscule manageable size, low maintenance, and determine and easy loan repayments.Indian streets are full of people of all age groups riding a two wheeler. Motorized two wheelers are seen as a symb ol of status by the populace. Two wheelers in India are the second largest producer and shaper of two-wheelers in the homo. It stands next save to japan and China in terms of the number of two-wheelers produced and domestic gross r plainue respectively. Indian two-wheeler industry has got spectacular growth in the last few years. Indian two-wheeler industry had a small beginning in the primeval 50s. The Automobile Products of India (API) started manufacturing scooters in the country.Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. In the initial stages, the scooter segment was dominated by API it was afterwards overtaken by Bajaj Auto. Although various government and private enterp springs entered the fray for scooters, the only new player that has lasted till today is LML. The motorcycle segment was ab initio dominated by Enfield 350cc bikes and Esc orts 175cc bike. The two-wheeler market was opened to foreign opposition in the mid-80s.And the 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 centreual low power bikes, demand swelled, resulting in wiz 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 submarine sandwich Honda brought in the first two-stroke and four-stroke locomotive 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. 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 issue 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 dry lands for recession in the sector were the incessant rise in fuel prices, high stimulant be 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 united with the recession in the industry resulted in companionship either inform losses or a fall in profits. Two wheeler fleet composition in India- STRUCTURE OF TWO WHEELER INDUSTRY Mopeds- Over the last 15 years, mopeds contribution in overall 2-wheelers has declined significantly and now it remains a marginal category with just one manufacturer for the product. Its contribution in the 2-wheelers industry now stands at 5% and we expect that this segment will continue to be marginalised. The only player in this segment is TVS Motor. * Scooters- Advent of fuel efficient motorcycles in the Indian 2-wheelers industry led to decline of Scooters. however, over the last five years, it has made a recovery and is emerging as a niche segment targeted towards women commuters.One of the reasons for this is the increasing need of mobility for the women commuters especially in the urban areas is due to higher number of college going girls and greater participation of women in urban work force. The product itself has gone for a complete renew and now this category mainly consists of gearless products. This segment is now dominated by Japanese manufacturers with HMSI having the leadership. HH, which is a late en trant in this segment, has also corner a sizeable market share in the scooter segment. some other development in this segment is the launch of battery operated scooters.However, given the high replacement cost for the batteries, this has remained a marginal segment. * Motor cycles and bikes- * Executive constituent Executive segment is the largest motorcycle segment and this is the stronghold of market leader HH. Competitors have tried to challenge HH in this segment, however all such challenges have fizzled out over time. With higher growth in economy segment, the contribution of this segment had come below 50% in FY06. However over the last three years, it has made a strong come back and now accounts for almost 60% of the motorcycle share. * Premium SegmentThis segment was creation of HH with CBZ And KARIZMA however major boost to the segment was given by BAJAJ through Pulsar which has dominated the segment. HH has remained a marginal player in this segment and one of the reason s for this is presence of HMSI in this segment. This segment remains a small segment in the Indian market with contribution of around 23% to the motorcycle industry. This is the performance segment and customers pay a premium for the novelty. therefrom constant upgradation in the product is a requisite for success in this segment. Usage Pattern of two-wheelers in IndiaIs quite different from other countries * initial cost and fuel economy are highest priority. * Low maintenance costs are desired. * Small entrepreneurs and farmers conduct their business carrying loads. * Very limited workout for sports bike. * Indians prefer the two wheelers because of their small manageable size, low maintenance, and pricing and easy loan repayments. Key players in the Two-wheeler industry * Hero Honda motors ltd. * Bajaj auto ltd. * TVS motors high society ltd. * Yamaha motors India * Honda motorcycle and scooters India Motorcycles in India Bikes comprise a major segment of Indian two wheeler in dustry.Companies Hero Honda Motors Ltd (HHML ) Hero Honda Motors Limited was establish in 1984, as a joint venture between Indias Hero theme (worlds largest bicycle manufacturers) and Japans Honda Motor companionship. And created the worlds single largest two wheeler telephoner and also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first confederacy in India. Over 19 million Hero Honda two wheelers racecourse on Indian roads today. * Hero Honda CD Dawn * Hero Honda CD Deluxe * Hero Honda Glamour * Hero Honda Glamour-Fi * Hero Honda Karizma * Hero Honda Passion Plus Hero Honda Pleasure * Hero Honda Super splendor * Hero Honda Splendor NXG * Hero Honda CBZ X-Treme Bajaj Auto Ltd Company Bajaj is the first Indian two wheeler automobile society in the market since 1945 with the mark M/s Bacharj trading corporation private limited. In 1959 M/s Bacharj trading corporation private limited change its prenomen as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959. * Bajaj Avenger * Bajaj CT 100 * Bajaj Platina * Bajaj Discover DTSi * Bajaj Pulsar DTSi * Bajaj Wave * Bajaj Wind one hundred twenty-five * Sonic DTSiTVS Motor Company TVS Motors is the third largest caller in the two-wheeler industry with a market share of 16%. Infect, it is the only Indian company without a foreign quislingism in the two-wheeler industry. When the company opted out of the collaboration with Suzuki in 2002, many believed that TVS was headed towards extinction. But the company proved the doomsayers wrong and came out with a very successful TVS lord. TVS Motors Ltd. originally incorporated in 1982 to manufacture two-wheelers in collaboration with Suzuki Motors of Japan, TVS was one of the leaders in two-wheeler industry. TVS Apache * TVS Centra * TVS Fiero * TVS Star * TVS Victor Yamaha Motor India Yamaha Motor Corporation is the auto mobile company of Jap an (1953) which works in India since 1955 and providing latest applied science in India from last two decades. Yamaha Motor India was incorporated in august 2001 as a 100% subsidiary of Yamaha motor corporation, Japan * Yamaha CruxS * Yamaha G5 * Yamaha Gladiator * Yamaha FZ 16 * Yamaha R15 * Yamaha Fazer Honda motor Honda motors of Japan is not a new recognize in the two wheeler scenario in the country, they were in a tie up with the Firodias owned kinetic group.However in the late 90s they parted ways after problems arose over issues like introduction of new models, advertising expenditure, marketing strategies and other related issues. In the mid 80 Honda motors of Japan joined hands with the largest bicycle overlord of India the Hero cycles to create Hero Honda which in a couple of decades or so have gone on to become the single largest motorcycle company in the world. though Honda has come on its own on the Indian market yet it will be providing technological support to Her o Honda for the next ten years.Thus presenting a unique situation in which the company will be in direct competition with the company which it has been associated for nearly two decades. Honda Motorcycles and Scooters India limited, a 100% subsidiary of Honda motor company Japan slipually entered the Indian market with Honda Unicorn in 2004. * Honda Unicorn * Honda activa in a flash barely the marketing strategies of sensation HONDA and its competitor BAJAJ will be analyzed. HERO HONDA * The Company was Incorporated on 19th January,1984 at New Delhi as a joint venture. Today Hero Honda is the largest two-wheeler manufacturer in the world producing more than 3 million units of two-wheeler per year. * The companys most popular model is the Hero Honda Splendour, which is the worlds largest-selling motorcycle. * Over 19 million Hero Honda two wheelers are on Indian roads today. * Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. * During the fiscal year 2008-09, the company has sold 3. 28 million bikes. PRODUCT MIX SCOOTER BIKE 100CC 125CC 150CC 220CC PLEASURE CD 100SPLENDORSPLENDOR+PASSIONPASSION+ AMBITIONGLAMOR CBZCBZ XTREME KARIZMABAJAJ (COMPETITOR) * Established in 1945. * Started production of scooters in 1961 and became first two wheeler manufacturing company of India. * Bajaj Auto, is ranked as the worlds fourth largest two and three- wheeler manufacturer. * Bajaj Auto is Indias largest exporter of two wheelers. * During 2008-09, the company exported 772,519 two and three-wheelers recording a growth of 25 percent over 2007-08. * Exports now constitute 37 per cent in volume terms and 35 per cent IN value of net sales. PRODUCT MIX 100CC 125CC 135CC 150CC 180CC 200CC 220CC BAJAJ CT 100, BAJAJ PLTINIA, BAJAJ WAVE DISCOVER,BAJAJ WIND,BAJAJ XCD PULSAR-135 PULSAR-150 PULSAR-180,AVENGER PULSAR-200 PULSAR-220 4 Ps OF MARKETING OF HERO HONDA - PRODUCT Hero Honda, which has a technology tie-up with Japans Honda Motors, was currently discussing the feasibility of manufacturing scooters for the Indian market, Mr. Munjal said. However, the company has a medical dressing clause with Hondas scooter manufacturing Indian subsidiary, preventing it from making scooters till 2004. Hero Honda Motors, Indias largest motorcycle company, has launched the premium segment 223cc motorcycle Karizma priced at Rs 79,000 (ex-showroom, Delhi).Many of the products which the company has started with have been phased off. Now the existing products are Karizma, Ambition, CBZ, Splendor, Splendor+, Passion, Passion Plus, CD 100 SS, CD 100 and CD Dawn. The TCS study examines customer evaluations at three perspicuous ownership periods 1 to 6 months, 7 to 18 months, and 25 to 36 months. This helps in understanding the differences in satisfaction during initial ownership, in-warranty and post-warranty ownership periods. enjoyment ratings decline as the length of vehicle ownership increases.However, Hero Honda Splendor is amo ng the few models to maintain consistency across the three ownership periods. set Pricing is a important component of marketing mix of the firm. find out the prices of different products of a firm is very difficult task of the marketing manager. Price denotes bills value of a product. If represent the amount of notes for which a product can be switch over. In other words, prices represents the money which the buyer pays to the seller for a product price represent the exchange value of adepts and services in terms of money. Price is all around.Price factor has very well been touched by the manufacturers. The pricing strategy of the company is very set. They price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment and demand of the product in the market. A pricing strategy that ensured an average manufacturer margin that peppy dealer an adequate return and created a written report with consumers like a c ompany selling a good lineament product at a reasonable price. Industry focus themselves the low cost producer with good quality and aimed to maintain the price advantage in every market of two wheelers.Hero Honda group ensures an easily cheap pricing through excellent transportation to common man. It fixes customer centrical pricing that provide customer total satisfaction. Hero Hondas pricing objectives are List price, Discount, Financing schemes, Credit terms, and Maximize profits Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. It fixes customer centric pricing that provides the customer with total satisfaction. perplex CHANNELS OF DISTRIBUTION As a company, dealers play a major role in serving customers, while growing and sustaining markets.Hero Honda has a network of more than 3500 strong and dedicated Authorized dealers. A network that has helped Hero Hondas name and its promise of reliable quality to every part of the country. The power of this highly efficient and motivated network goes a foresightful way to create blessing for Hero Honda gull among countless consumers besides creating availability and after sales services. The channel of distribution is a direct dealer network. A direct dealer is a dealer who is countenance to purchase the product directly from the company and sell. PHYSICAL DISTRIBUTION Hero Honda has more than 3500 showrooms in India.Some of the Authorized dealers of Hero Honda Karizma, in and around Bombay, are Max Motors (Bombay) F. P. Motors (Bombay) Axis Motors (Thane) Ranjeet Motors (Thane) Ahir Motors (Kalyan) Spectra Motors (New Bombay) H. M. Motors (Panvel) PROMOTION Promotional tools 1. ADVERTISING It is defined as a paid non-personal communication with a target (usually mass) market. It is cost sound and can reach a large number of people. It can also be used for long term or short term objectives. There are various forms or mediums through which can adv ertise. A. radiate Media * Television * Radio * Cinema B. Print media Newspapers * Magazines * Leaflets C. Outdoor media * Posters and billboards. 2. PUBLIC dealings AN PUBLICITY Public relations are an umbrella term and refer to the totality of the organizations behavior with respect to the society in which it operates. The maybe regarded as good or bad and is reflected in the companys reputation and range. 3. SPONSORSHIP Sponsorship can be seen as a part of public relations and it is certainly the case that some sponsorship goes on to sacrifice positive publicity for the organization. The company has not left any perdition untamed in sponsoring the major events both globally and domestically.The biggest of all is the sponsorship of the valet CUP for which Hero Honda has the credit of being the only two-wheeler company in the world to do so. Recently they are sponsoring the Hockey institution cup. likewise this, the company has also sponsored events like Master Golf, televi sion academy awards, etc, Thus the company has gained a lot of reputation by doing so. 4. DISCOUNTS/OFFERS The company has started heavy(a) discounts and other offers to the customers on the purchase of a new bike, for instance, with the World Cup offer, in which the consumer was to get a 1 gm grand coin with every purchase.But after all these schemes and avails may be because of cut-throat competition in the segment with heavyweight competition such as Bajaj, kinetic, Yamaha, and TVS the company (HERO HONDA) officially says Our aim is to proactively and consistently deliver value to the customer. We are giving back to the customer after becoming successful. Most companies give discounts only when their products are not doing well in the market. There is lost of competition in the segment, especially from Bajaj.But the reason for Hero Hondas success it that we are consumer-focused while other companies such as Bajaj tends to be more competitor-focused. 5. examine ride and Road show PROMOTION POLICY * Company gives advertising in different media vehicles time to time. Like in TV. Magazines, newspaper, etc. * Hero Honda also organizes free service camps every year. * Hero Honda also takes art in trade fair. * Hero Honda with the help of ICICI Bank provides loan to the customers & also provide easy monthly installment scheme to customers. * Hero Honda gives big commission to their dealers.Advertisement, local events sponsorship and promotions and inviting a prominent personality for the inaugural or first like delivery function would contribute effectively in generating a wider local interest and attention. Hero Hondas latest DKD 2 commercial its two dirt starring its Ambassador and Indias softheartedness throbs, Hritik Roshan and Sourav Ganguly, truly reflects the multi fact roles that todays new generation plays. The commercial reflecting the charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new heights. It is young, fluoresc ent and vibrant and represents the icons of contemporary times.And it will go a long way in strengthening the leadership status of the product by the mile. The new commercial is powerful film repeat with an impressive storyline. The effort to cram the story, romp and impact in just 60 seconds was phenomenal challenge itself. The idea was born itself. The idea was born out of the very join of Hero and Stars. Keeping in mind would cause on the drama and impact it would cause on the audience. It is a commercial packed with action where todays heart throbs, Hritik and saurav, are seen tackling new roles.The story being in a field adjoining a hill with two cool men, Hritik and Sourav on Hero Honda bikes and Passion respectively. Both Sameer and Aditya win life story probability act with Hritik and Sourav, the two star heartthrobs of millions in India and all four will be seen in action in the new commercial DKD-2. These are some of the Slogan for every product (Bike) and these are followers- CD-100Fill it, shut it, Forget it. CD100SSTough and Rugged. Splendor Designed to Excel. road SmartLicense to enjoy. PassionWhen style matters, Bike born in studio not in factory.CBZMotorcycling Unplugged. MARKET SEGMENTATION OF HERO HONDA * Demographic Segmentation * Income HERO HONDA products are offered to the public taking into attachment all the income groups in the society. * Age The main segmented group for the motorcycle are 18 years and above. * Occupation All kinds of people are taken into account. Students, professionals, Govt. Servants, etc. * Geographic Segmentation The potential customers are fundamentally from every regions of India. * Psychographic segmentationPeople purchasing bikes are very economical, quality, brand conscious and loyality. Behavioral segmentationThis segmentation is done considering user status, benefit wise. TARGETING AND POSITIONING OF HERO HONDA TARGETING The proposed targeting people in the age group of 18 years and above with a av erage monthly income of approximately Rs. 10,000 and above, who are brand loyal and who are either students or retired individuals or may be employed as professionals, government servants or having their own business, but mostly male i. e on the different stratas of the population. POSITIONING The image that Hero Honda creates in the mind of the customers is the faith. The add shown by it says Desh ki Dhadkan.That authority its a member of the Indian family. It represents the Indian culture and society. The objectives can be achieved through the implementation of suitable marketing strategy by the organisation. It is the marketing logic that is formulated keeping in mind the needfully of the consumers and also strategies of the competitors. Porters five force model for Hero Honda- Bargaining king of suppliers Suppliers of auto components are fragmented and are extremely critical for this industry since most of the component work is outsourced. Proper supply chain focussing is a costly yet critical need. Bargaining Power of purchaserBuyers in automobile market have more choice to carry from and the increasing competition is driving the bargaining power of customers uphill. With more models to subscribe to from in almost all categories, the market forces have empowered the buyers to a large extent. Competitive rivalry The industry rivalry is extremely high with any product being matched in a few months by competitor. This instinct of the industry is primarily driven by the technical capabilities acquired over years of gestation under the technical collaboration with international players. brat of substitute Products There is no perfect substitute to this industry.Also, if there is any substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport, do never directly compete or come in consideration while selecting a two-wheeler, cycles do never even compete with the low entry level moped for even this choice comes at a co mparatively higher economic potential. Threat of new entrantsHere the threat of new depends on the economies of scale of the cost of production, and customer fracture costs, access to industry distribution channels. S. W. O. T. ANALYSIS OF HERO HONDA (KARIZMA)- STRENGTH It has a good speed and sporty look Karizma is the First bike in India launched under Sports Bike Segment. Loyal Customer Base In the ago four years, Karizma has been successful in building up a good and loyal base among its customers. After Sales Service Till today, customers are satisfied with the after sales service provided by Hero Honda for this extra product. Refinement, comfort, great handling and that much-sought-after big bike feel are all available on the Karizma. Brand Recall the name Karizma itself is a illustration to its success. The brand Karizma has given a good platform to this product in the Sports Bike Segment. WEAKNESS High Maintenance The maintenance of Karizma is high as compared to i ts biggest competitor Bajaj Pulsar 200cc and 220cc. Fuel Efficiency The pulsar 200cc offers an impressive mileage of 38. 3kpl in city and 42. 4kpl in highway against the Karizma offers only 30kpl in city and a adequate figure of 45kpl in highway. Less Promotion the promotions and ads of Karizma are very less as compared to its competitors. OPPORTUNITIES If Hero Honda comes up with the idea of changing some features of Karizma, like self cancelling indicators, soft touch conduct bar and digital speedometer, it will help them to boost up the sales of Karizma. If they are able to ad-lib the fuel skill of Karizma, it will be a golden opportunity to take over the market. THREATS The major threat faced by Hero Honda Karizma is from Bajaj Pulsar, who has eer been the market leader in the 150 plus segment with 60% market share. Karizmas strong competitors Bajaj and TVS, in 150 cc plus segment, already posses certain features like self-controlling indicators, soft touch handle bar w hich Karizma lacks. The competitor Pulsar 200cc has already come up with oil cooled engine which delivers maximum power.This is again a major threat to Karizma. S. W. O. T. ANALYSIS OF BAJAJ (PULSAR 220cc) STRENGTHS Pulsar 220cc features Indias First Oil Cooled Engine which delivers maximum power making it most powerful engine offered by Bajaj. New Pulsar also provides Digital Speedometer, ego Canceling Indicators which is for the First time in this segment in India. Fuel efficiency Pulsar 220cc delivers an impressive mileage of 38. 2 kmpl in city as compared to Karizma which delivers 30 kmpl in city. Customer Base In past decade Bajaj has established a strong base amongst its customers.WEAKNESS Style and Design PULSAR 200cc and 220cc dos their styling from there foregoing version Pulsar 150 Dts-i and 180 Dts-i. Pricing Bajaj 220cc (Rs 82449 basic price) is costlier than karizma(Rs 78000 basic price) OPPORTUNITIES If they derive new styling, shape, design for pulsar 200cc and 220cc then they can attract more customers. taking into consideration the reviews of the customers regarding the fairing of 220cc and making the needful changes will be an opportunity to stop an even larger share of the 200cc+ segment THREATS The biggest threat is faced from the goodwill of Karizma in this segment who is the Four-Stroke Two Wheeler Ruler of the Indian bike market. Certain technical faults in the bike design which are potentially dangerous to the riders safety can be opprobrious to the image of the bike. COMPARISION OF ADVERTISING STRATEY OF HERO HONDA AND BAJAJ ADVERTISING STRATEGY OF HERO HONDA- shortly the number one company in terms of sales and has been paramount in the two-wheeler segment since the past decade. Since the inception of adept Honda, the company has been use television as a major role for its publicity.Though hero Honda was overabundant in sales it lacked the skills of creating a spectacular ad till now. Though it had a vast range of mobiles, its advertising strategy was not up to the mark. For its publicity hero Honda has been using many famous celebrities like Saurav Ganguly, the professional of Indian cricket team, Hritik Roshan and other famous personalities as their brand ambassadors. Thus, hero Honda has been spending huge amounts on its publicity. The biggest of all is the sponsorship of the WORLD CUP for which Hero Honda has the credit of being the only two-wheeler company in the world to do so.Presently they have tried to gain publicity by sponsoring the hockey world cup event which is the national game of India. There by creating a sense oneness and Nationalism through providing publicity and encouragement to the game by various ads. By sponsoring the hockey wprld cup event ,which is a national game of india ADVERTISING STRATEGY OF BAJAJ- Bajaj is always know for its outstanding ads over the period of time. Since its inception, Bajaj has come out with variety of ads and were always successful in th eir ads. Scooters were well known by the brand name of Bajaj.Be it any scooter, one used to recognize it by the brand name Bajaj. This was the identity a decade ago which the Bajaj has still maintained. Bajaj is always known for its ads without well-known brand ambassadors which is again a plus point to its perambulator as it saves a huge cost in terms of brand ambassadors unlike Hero Honda and TVS. Prior, Bajaj used to convey the feeling of Indianness in its ads. With a punch line Hamara Bajaj Bajaj drove into everybodys hearts and the title shout of Naye Bharat Ki Naye Tasveer added a great value to its mobikes and scooters.A couple of years back, Bajaj had introduced an advertisement which promoted all the different ranges it had, wherein they had shown each product they had with a feeling of Indianness. case Eliminator passes-by a rangoli and drives slowly sideways without disturbing it. People on pugilist pass-by a temple and bend their head to give a little offering. Such ads had revealing Indian culture had a great effect on Indians and Bajaj was successful in most of its ads. But recently, Bajaj had changed its brand logo along with its punch line i. e. Hamara Bajaj got converted to Inspiring Confidence.The reason for this change as told by the company officials was to keep pace with the new technologies in the fast moving world. Even though it had changed its punch line, it didnt have much effect on its brand image. A year back, Bajaj introduced DTSi technology upgrading its always successful PULSAR 150cc and 180cc. Though Bajaj had changed its identity it still dominates for its creativity in ads. Future Challenges and Plans- * Sustaining the growth rate. * Need for innovation low cost/ hybrid vehicles. * Upgrading Indian two-wheeler products. * Taking the products to the global market. * Capturing Indian as well as global market.Suggestions- * Encourage exports. * Provide various two-wheeler financing schemes among manufacturers. * return R& D centers. * Pressurize government to reduce taxes and duties. * Collaborate with global players. Conclusion - The outlook for Indias self-propelled sector is highly promising. In view of current growth trends and prospect of continuous economic growth of over 6 per cent, all segments of the auto industry are belike to see continued growth. Large infrastructure development projects underway in India combined with favourable government policies will also drive automotive growth in the next few years.