“A study on customer purchase decision for Bajaj & Yamaha

bikes with respect to Indore City.”

A SYNOPSIS
FOR
MASTER OF BUSINESS
ADMINISTRATION

DEVI AHILYA VISHWAVIDHALAYA, INDORE

Guided By Submitted By
Prof. Sonali Thakur Sandeep Chaurasiya
MBA 2nd year
 INTRODUCTION
Indian Two-Wheeler Industry:
The Indian two-wheeler industry has come long way since its humble beginning in
1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Since
then, the customer preferences have changed in favour of motorcycles and gearless
scooterettes that score higher on technology, fuel economy and aesthetic appeal, at
the expense of metal-bodied geared scooters and mopeds. These changes in
customer preferences have had an impact on fortunes of the players. The erstwhile
leaders have either perished or have significantly lost market share, whereas new
leaders have emerged.
Rising income levels, reducing excise duties, higher loan tenure and loan-to-value
offered by the financing companies have all fuelled the growth of two-wheeler sales
in the country. Besides, mounting traffic chaos and limited parking space has also
increased the demand for two-wheelers from households that can afford or actually
do own a car. Furthermore, with increasing women working population, changing
social philosophy and broad-mindedness, the penetration of two-wheelers that is
currently at abysmally low level is expected to increase significantly going forward.
 Bajaj Auto
Bajaj Auto is a major Indian automobile manufacturer started by a Rajashthani merchant. It is world's
fourth largest manufacturer of two-wheelers and India's second largest two wheeler manufacturer and the
world's 4th largest two- and three-wheeler maker. It is based in Pune, Maharashtra with plants in Akurdi
and Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttaranchal Bajaj Auto makes and
exports,motorcycles and the auto rickshaw
The Forbes of Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.
Over the last decade, the company has successfully changed its image from a scooter manufacturer to a
two wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real
growth in numbers has come in the last four years after successful introduction of a few models in the
motorcycle segment.
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation Private
Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it obtained license
from the Government of India to manufacture two- and three-wheelers and it went public in 1960. In
1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce and sell 100,000 vehicles in a
single financial year. In 1985, it started producing at Waluj in Aurangabad In 1986, it managed to
produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle
and produced and sold 1 million vehicles in a year.
 Yamaha
Yamaha was established in 1887 as a piano and manufacturer by Torakusu Yamaha as
Nippon Gakki Company, Limited (Nippon Gakki Seizō Kabushiki Gaisha) (literally
Japan Musical Instrument Multinational Corporation) in Hamamatsu, Shizuoka
Prefecture and was incorporated on October 12, 1897. The company's origins as a
musical instrument manufacturer is still reflected today in the group's logo—a trio of
interlocking tuning forks.
After World War II, company president Genichi Kawakamisaki repurposed the
remains of the company's war-time production machinery and the company's expertise
in metallurgical technologies to the manufacture of motorcycles. The YA-1 (AKA
Akatombo, the "Red Dragonfly"), of which 125 were built in the first year of
production (1958), was named in honor of the founder. It was a 125cc, single cylinder,
two-stroke, street bike patterned after the German DKW RT125 (which the British
munitions firm, BSA had also copied in the post-war era and manufactured as the
Bantam and Harley-Davidson as the Hummer). In 1959, the success of the YA-1
resulted in the founding of the Yamaha Motor Co., Ltd.
 LITERATURE REVIEW
The customer perception report includes questions in four key areas, Expectations,
Purchase Decisions, Customer Service, and Future Purchases. So the customer should be
invited to participate in the survey. Setting realistic expectations during the sales process is
a vital component of making happy customers. How a company sets and meets product and
service expectations plays a pivotal role in fashioning customer opinions. How a company
meets or exceeds expectations is measured in three important areas: product/service,
support, and price. These three areas will be used to factor a score for the Expectations
category. The results of the three questions will be used to factor and overall expectations
perception score.
The Purchase Decision category gives us a better understanding of how the customer
perceives the purchase process. Two key areas for questions include an open ended
question on why they purchased and a ratings question on their experience.
The rating question data will be used for the analysis of Purchase Decision category. The
open ended responses from the “Why” questions will be used for product strengths
analysis. The results of the purchase experience question will be used for the overall
Purchase perception analysis. Customer service is one of the most important
differentiations a company can have. For this report, customers will rate a company in
three key areas: customer service, timeliness for problem resolution, and expertise. These
three areas will be used to factor a score for the Customer Service category.
 OBJECTIVE
•To identify the various factor influencing the purchase
decision of consumer when buying a motorcycle and to
determine the relative importance of these factors.

•To find out the most effective media influencing the purchase
behavior of motorcycle buyers.

•To study the post purchase behavior of the owner of

motorcycle.

•To determine the popularity of various brands available in the

market.
 Major Factors Influencing Consumer Behavior

Consumers buying behavior is influenced by cultural, social, personal and psychological

factors.
Cultural Factors
○ Subculture
○ Social Class
Social Factors
○ Family
○ Roles and Status
Personal Factors
○ Age and stage in the life cycle
○ Occupation and economic circumstances
○ Lifestyle
○ Personality and self-concept
Psychological Factors
○ Motivation
○ Perception
○ Learning
○ Beliefs and attitudes
 RESEARCH METHODOLOGY
1. DATA SOURCES.
Two types of data were taken into consideration i.e., primary data and
secondary data. But major emphasis was given on gathering primary
data. The secondary data was used only to supplement the primary and
make things clear.
a) Primary Data: the collection of data for this source includes
•Questionnaire filled up by people.
•General discussion so made at the time of filling up of questionnaire.
b) Secondary Data: It includes various sites on the internet.
2. SAMPLING PLAN
a) Sampling Unit: who is to be surveyed?
•The target population was people of Indore city
•Based on convenience sampling.
b) Sampling Size:
The size of our sample is 250.
 SCOPE OF THE STUDY

Project aims to understand and enunciate the working

process of different automobile and evaluating its outcome in the two
wheeler automobile sector. Over the past few years, there has been
tremendous progress made around the world in opening up travel and
tourism markets to the benefits of increased competition.
One of the main aspects of the project is to analyze the
different products and services offered and initiatives adapted for two
wheeler automobiles sector their product. Selling “intangible assets”
is one of the toughest jobs in the world. The project is more of a team
effort and will incur team returns.
LIMITATIONS OF THE STUDY

•The survey is conducted on a sample size of just 250

people.

•The study is confined to Indore, may not be relevant to

others cities.

•The paucity of time during which the study was carried

out limited the scope of the research in the terms of
number or variety of the respondents.
 BIBLIOGRAPHY
•BOOKS:

1.Marketing Management- by Philip Kotler

2.Research methodology- methods and techniques
-by CR Kothari, New Age International Publishers

•News Paper
1.The economic times
2.Hindustan times
3. Business Standard
4. Business World

•WEB ADDRESS:
•www.Google.com
•www.ask.com
•www.yahoo.com