A

RESEARCH REPORT

ON STUDENT PREFERENCES &PERCEPTION

IN VARIOUS BRANDS OF

TWO-WHEELER SEGMENT

Submitted To

Institute of management

All India Shri Shivaji memorial society

In order for the research methodology project

Submitted by

Atib sharif roll.no-90

Vishal tankar roll.no-165

Sharad joshi roll.no-173

MBA-1

Submitted to

Prof.bhalchandra bite

Faculty for research methodology

ACADEMIC YEAR

YEAR 2010-11

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 ACKNOWLEDGEMENT

Life is full of interaction. In our daily life we get ahead by giving hope to each other.

When a person is doing some important work whether as a guide, helper, supporter i.e., a true
friend is needed. And one feels obliged to them.

There is always a sense of gratitude which one feels towards his/her Guru or Mentor who has
helped him/her at one point of time or the other.

We are thankful to PROF. BHALCHANDRA BITE who was always there to give my spirits a
boost and whose guidance it would not have been possible for me to complete my project report
successfully.

We shall be falling in my duties if I do not express my gratitude to my friends and other persons
for their useful advice at various stages.

Atib sharif

Vishal tankar

Sharad joshi

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 EXECUTIVE SUMMARY

The study has been conducted to know what are the various factors, which influence the
choice of two wheelers amongst student, and to what extent do they do so. This study has
been undertaken to know the extent of influence while making a choice for buyinga
particular two-wheeler based on

1.Product related features.

2.Market related factors.
3.Societal factors.
4.Economy related factors.
6.Geographical factors.
7.Personality related factors.

The reason underlying the need to assess and evaluate the various factors which play a
prominent role in helping a Students to make a choice for a particular two wheeler from the
various available alternatives to him. Some of these factors are predominant in decision
making where as some others are not very significant but have still found a place in the
research work owing to their contribution although marginal.

The study has been conducted by understanding the need and various requirements for
study. Then the factors which influence the decision making process for a particular two-
wheeler were decided. Responses from students were collected by means of a
comprehensive questionnaire. Based on these responses the analysis has been done and
inferences have been drawn.

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 CONTENTS

SR.NO PARTICULARS PAGENO.

1 INTRODUCTION 5
2 OBJECTIVES 11
3 LITERATURE REVIEW 18

4 RESEARCH METHADOLOGY 22
5 DATA COLLECTION 24

6 DATA ANALYSIS 25
7 CONCLUSION 30
8 APPENDIX 32

4
INTRODUCTION

5
 INTRODUCTION

INDUSTRY OVERVIEW

India is the largest manufacturer of two wheelers in the world. It stands next only to Japan and
China in terms of the number of two wheelers manufactured and sold respectively.

Initially the motorcycles segment had only three manufacturers Enfield, Ideal, jawa and Escorts.
While bullet was a four –stroke bike, java and Rajdoot were the two strokes. Enfield 350cc bikes
& escorts 175cc bike initially dominated motorcycle segment.

The two wheelers market was opened to foreign competition in the mid-80’s and the then
market leaders – Escort & Enfield were caught unaware by the onslaughts of the 100 cc 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 (100 cc
category), gaining a top slot.

The 1st Japanese motorcycles were introduced in the early eighties. TVS Suzuki & Hero Honda
brought in the 1st two stroke & four strokes engine motorcycles respectively. These two players
initially started with assembly of Ckd kits, & later on progressed to indigenous manufacturing .In
the 90’s the major growth for motorcycle segment was brought by Japanese motorcycles, which
grew at the rate of nearly 25% CAGR in the last five years.

The Indian two wheelers can be broadly classified into three major segments –scooters,
motorcycles & mopeds. The domestic two wheeler sales of 3.800 mn in FY 2000 constitutes
scooter sales of 33.4% (39%in FY 1999), motorcycles 47.7 %( 42% in FY 99) & mopeds 18 %
( 20% in FY 99). The motorcycle segment has gradually increased its presence from 27% in the
year 1992 to 48% in the year 2000, mainly at the expenses of the scooter and, to some extent, the
moped segment.

The demand for scooters is on the wane and witnessed a 19% yoy fall in Fy 2000 .Sales in the
scooters segment are expected to fail further , while on the other side motorcycle and scooterette

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segment will record continued growth in the future . This will translate into a demand fall of
around 20% in scooters. with the ongoing expansion from Bajaj auto Ltd.,LML & TVS Suzuki ,
the capacity in the sector will increase from 2mn in fy 2000 to 2.15 mn FY 01 leading to a
surplus situation.

We expect the motorcycle segment to continue to grow at an average of 20% in FY 01 . This will
increase demand for motorcycles from 1.800 mn in FY 2000 to 2.15mn in FY FY 01. The supply
of motorcycle segment as per the present trend will increase from 2.08 mn in FY 2000 to 2.38
mn in FY 01. The segment will be witnessing several new entrants in FY 01, mainly in the four
stroke sub segment. This will lead to an over supply situation and increase the competition in the
Japanese segment..

CHANGES

In the last six years, the domestic two wheelers industry has seen structural changes. This can be
seen from the change in composition of two –wheelers sales, where the motorcycles have
consistently gained market share from the scooter and moped segments to corners a share of 41%
of total two wheelers sales. This trend is expected to continue in the next two years till the four
stroke scooters make their presence felt in the segment. The table below gives an idea the strides
made the motorcycle segment in the last six years.

CATEGORY

The Indian motorcycle industry can broadly categorized in to Indian motorcycles and Indo
Japanese motorcycles. The Indo – Japanese motorcycle segment is dominated by by Hero group,
Bajaj and Escorts in collaboration with Japanese vehicle manufacturers Honda, Kawasaki &
Yamaha respectively. The Indian motorcycles segment is dominated by Bajaj, Escorts & Enfield.

SALES

In the motorcycle sales western region leads with a market share of 40% of the total motorcycle
sales. South & North regions come second & third with an mkt share of 28% & 17.5 % of total
motorcycles sales respectively.

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MARKET SHARE

The study of SIAM shows that around 23%of two wheeler sales are directly or indirectly affects
by the decision made by students or youngsters. The total of 23%of sales is a huge target
segment for the two wheeler manufacturers and there are every manufacturer focusing on this
niche segment like bajaj with its range of motorcycles like pulsar discover etc. bajaj has tried to
put up all the features in his bikes which can attract especially youngsters

In terms of two wheelers vehicle population, Maharastra stands 1st with a population of all most
3 mn vehicle and and Gujarat stands 2nd with 2.7mn vehicles population as on march 31st 97.
Tamilnadu is he largest state with 2.45 mn two wheelers population. In the period FY 1993 –
FY99 the two wheelers industry has grown at CAGR of 14.6%. This splendid growth was
possible due to the average performance of motorcycle segment, which has grown at a CAGR of
24.3 % compared to 11% for scooters & 8.6 % for mopeds. After lying for two years, sales of
two wheelers bounced back a witness growth in FY 99. The sales of two wheelers has increased
by 11.85% YOY to 3.4 mn . The trend has continued in FY 2000 with the sector sales growing
by 11% to 3.78 mn vehicles. The demand of two wheelers in India is dependent upon factors like
availability of finance, increase in income levels, and restricted growth in public transportation
and movement in petrol prices. Except petrol prices, all other factors have positive correlation
with the demand of two wheelers .The increase in petrol prices on contrary, adversely affects the
demand for two wheelers, due to increase in the running cost of a vehicle.

SEGMENT

Two wheelers are distinguished on different factors for different consumer segments. For e.g.
high powered two wheelers have a niche market as racing / sporting vehicle and have a special
appeal to youngsters. Easy maneuverability / handling ease is preferred by teenagers and women.
Urbanities are lured by fuel efficiency a low maintenance. The lower end of the market looks for
durability, value for money and higher resale values.

History of two wheelers in India:

The Indian two-wheeler industry made a small beginning in the early 1950’s when Automobile
Products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.

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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, API dominated the scooter segment; Bajaj Auto later overtook it. 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. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment.

The two-wheeler market was opened to foreign competition 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-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 1990’s 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 1950’s, 1960’s and 1970’s when the Government
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden
growth in the 1980’s. 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. This helped in inducing youngsters and working women, towards
buying scooters, who were earlier inclined towards moped purchases. In the 1990’s, this trend

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was reversed with the introduction of scooterettes. In line with this, the scooter segment has
consistently lost its part of the market share in the two-wheeler market.

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 0.4mn 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. A factor like increased production in 1992, due to new entrants coupled
with the recession in the industry resulted in companies 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.

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OBJECTIVES

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 RESEARCH OBJECTIVES

 To study the factors influencing choice of two wheelers amongst youngsters.

Sub-Objectives of Research:

• To study the factors influencing choice of two wheelers amongst

Students based on Product related factors.

• To study the factors influencing choice of two wheelers amongst

Students based Market related factors.

• To study the factors influencing choice of two wheelers amongst

Students based on societal factors.

• To study the factors influencing choice of two wheelers amongst

Students based on economy related factors.

• To study the factors influencing choice of two wheelers amongst

Students based on geographical factors.

• To study the factors influencing choice of two wheelers amongst

Students based on price.

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REVIEW OF LITERATURE

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 REVIEW OF LITERATURE

CONSUMER PREFERENCE

Consumer Preference is a business term which is used to capture the idea of measuring how
satisfied an enterprise’s customers are with the organization Efforts in a market place.

Every organization has customers of some kind. The organization provides products (goods and
services) of some kind to its customers through the mechanism of a marketplace. The products
the organization provides are subject to competition whether by similar products or by
substitution products. The reasons on organization is interested in the satisfaction of its
customers is because customers purchase the organization’s products. The organization is
interested in retaining its existing customers and increasing the number of its customers.

How Companies Find Consumer Preferences

Companies routinely test the market to find out what customers like and dislike about their
products and competitors' products. This is usually done by an internal marketing department
or outsourced to a market research firm. Phone interviews, paper surveys, electronic surveys,
focus groups and consumer samplings are common methods for gathering information.

• Market Research Example

Here is a popular example of market research: A customer has finished shopping and paying
for merchandise at a local grocery store. Before handing the receipt to her, the cashier points
to and explains that she has been invited to participate in a short survey about her visit. If she

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 chooses to participate, she will receive $5 off her next visit and a chance to win a large
monetary grand prize.

How Companies Use This Information

After gathering information, the next step for the company is to determine what it means.
Analysis of the information may lead the company to change the formula, packaging, color,
size or some other feature of the product. In the case of motorcycles the company can change
the attributes of a motorcycles according the require features of the consumer.

CONSUMER BEHAVIOUR

In today’s challenging and competitive world of last changing technology, consumer tastes are
also characterized by fast changes. So to survive in the market the firms have to be in touch with
the changing consumer preferences. Marketers have to understand the consumer behavior and
factors influencing the buying behavior of the customers in order to be successful in this
dynamic and competitive environment.

Meaning of Consumer Behavior:

Consumer Behavior is the behavior that the consumer display while searching for, evaluating,
purchasing and disposing off products and services that they expect will satisfy their needs.
Consumer behavior is the study of how consumer makes their decisions to spend their resources
on consumption related items i.e. time, efforts and money.

Study of consumer behavior proves the marketers an insight regarding the consume preferences
and helps them in effective market segmentation and targeting. The importance of
consumer behavior lies in the fact that behavior can be understood and influenced to
ensure a positive purchase decision. So a round understanding of consumer behavior
is necessary for long run success of any marketing program.

DETERMINANTS OF CONSUMER BEHAVIOUR

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The study of consumer behaviour is quite complex, because of many variables involved and their
tendency to interact with and influence each other. The main determinants of consumer
behaviour are:

1. External Variables
2. Individual determinants of Consumer Behaviour

1. External Variables: The external environment is made up of various influences such as:
• Culture
• Sub Culture
• Social Class
• Family
• Reference Groups
• Personal Factors such as age and life cycle, education, occupation, life style,
personality, etc..

2. Individual Determinants of Consumer Behavior: The individual determinants of

consumer behavior are:
• Personality and Self Concept
• Motivation and Involvement
• Learning
• Memory
• Attitude

PERCEPTUAL MAPPING

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Consumer’s perceptions of products are developed in a complex way and are not easily
determined by marketers. However, a technique known as perceptual mapping may be used in
exploring consumer’s product perceptions. Since product can be perceived on many dimensions
(such as quality, price and strength) the technique is multidimensional in nature. That is, it allows
for the influence for more than one stimulus characteristic on product perceptions, typically
consumer feel out measuring scales to indicate their perceptions of many characteristics and
similarity of competing brands. Computer programs analyze the resulting data to determine those
products characteristics or combination of characteristics that are most important to consumers in
distinguishing between competing brands. Results of this analysis can be plotted in terms of
perceptual “maps” which display how consumes perceive the brands, and their differences, on a
coordinate system.

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 RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

When we talk of Research Methodology, we not only talk of Research Methods but also take
into consideration the logic behind the methods which we use in the context of our research
study and explain why we use or why we are using a particular method or technique. The
information that is to be needed for fulfilling the objective of study was collected from various
primary and secondary sources.

Meaning of Research

Research is defined as ‘a scientific and systematic search for pertinent information on a specific
topic. Research is an art of scientific investigation. It is an academic activity. It is a systematized
effort to gain new knowledge.

According to Advanced Learner’s Dictionary of Current English:

“Research is defined as a careful investigation or inquiry especially through search for new facts
in any branch of knowledge.” Survey design:

The study is a quantitative study based on the qualitative information because the data were
collected at different spots at different time. For the purpose of present study a related sample of
student population was selected on the basis of convenience.

SAMPLING DESIGN

 Target Population - The students are those who owns or not owns the motorcycles.
 Sample size – 75 persons were visited for the purpose of the study.

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  Sampling Technique - In this study, the students were chosen through convenience and
judgmental sampling.
 Sample Area - AISSMS CAMPUS, SATARA ROAD,VIMAN NGR.
 Data Analysis – Data collection through survey was analyzed with the help of simple
percentage, tabular and graphic method that includes both graphs and pie charts.
Data collection Technique

The whole secondary data were collected from industry profile, books, magazines and internet.
While primary data were collected though survey. The customer survey was done though the
questionnaire. Question consists of multiple questions on multiple aspects of preference. A
copy of questionnaire has been attached with the report.

Most favorable price ranges selected by the customers

Source of data:

There are two types of data: primary data and secondary data. Primary data are collected
with the help of questionnaire and secondary data was taken from industry profile, books,
magazines and internet. The information brochures of certain companies, informal links with
concerned person in this line, articles in newspapers and magazines and journals have also been
consulted as a secondary source of information.

Research plan
The research study is descriptive in nature. The established objectives were kept in mind during
the study, however the hypothesis was formed as the study was made in the form of descriptive
design attempting to analyze the attitude of respondents. This chapter describes the methodology
of the study. This project is based on information collected from primary sources. After the
detailed study, an attempt has been made to present comprehensive analysis of the preferences

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amongst students. The data had been used to cover various aspects student preference and their
satisfaction regarding two wheelers. .

Analytical Tools
A structured questionnaire was administered for the purpose of obtaining information form the
respondents/students. Care was taken to put the questions related to subject. It contains close-
ended as well open-ended questions as the objective demanded. Thus questionnaire has been
used to elicit the tool

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 ANALYSIS
&
DISCUSSION

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DO YOU OWN A BIKE?
STUDENTS WITH BIKE 42
STUDENTS W/O BIKE 32

INTERPRETATION:

STUDENTS WITHOUT BIKES ARE 44%

AND THOSE WHO OWNSWITH BIKES ARE 56%.

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PREFERENCES IN THE KIND OF BIKE

WITH GEAR 48
WITHOUT GEAR 27

INTERPRETATION:

THERE ARE 64%OF STUDENTS WHO PREFER MOTORCYCLES WITH

GEAR&36%WITHOUT GEARED.

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STUDENTS PREFERENCE IN IGNITION SYSTEM

INTERPRETATION:

OVER 80%STUDENTS PREFER E –START AGAINST ONLY 20%IN FAVOUR OF

KICK START.

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 PRE
FEREN IN THE SEGMENTS.

SEGMENT
100CC 7
110CC 10
125CC 8
135CC 6
150CC 18
180CC 16
220&ABOVE 16

INTERPRETATION

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FACTORS CONSIDERING DURING BUYING DECISION.

FACTORS
STYLE 15
POWER 10
MILEAGE 28
SAFETY 7
PRICE 15

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GEOGRAPHICAL LIMITATION EFFECTS

INTERPRETATION:

OVER 72% STUDENTS SAID THER DAILY TRAVELLING PLAYS SN

IMPORTANT ROLE IN SELECTING A BIKE AGAINST 22%SAYS THEY
DON’T HAVE SUCH TYPE OF PREFERENCES.

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LIMITATIONS OF A STUDY
Despite all possible efforts in conducting the research there was some unavoidable situation,
which limited the scope of this dissertation. The limitations of the dissertation fall under the
following:-

1. As the data was collected by way of questionnaire which was to be filled by students, and
taking it seriously is very tough for any of the students was the most difficult & some of the
students did not responded well.
2. This project is also confined on the basis of secondary data collected.
3. As the research is based on the data that already available and collected through various
means not includes the survey, hence it imposes limitations, as it is just possible that the
secondary data may be unsuitable or may be inadequate in the context of the topic under
study.
4. One of the major limitations of the study is that, as the data is collected though the secondary
means, hence it creates uncertainties regarding the methods of the data collection, time of
data collected, and any bias of the compiler during the previous research and at the time of
data collection.
5. Limitation of time & resources were a major factor influencing the research study.
6. One of the factor to give the untrue information by the student also create a question on the
study.

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 CONCLUSIONS

Based on Product related features:

Based on the product related features the following dominate the choice of a two-wheeler
amongst the students .

1. Maximum speed in (km / hr).

2. Pick up of the automobile.
3. Availability of the spares.
4. Loading capacity.
5. Driving comfort.
6. Colors available.
7. Weight of the vehicle.
8. Safety while driving.

Based on Market related factors:

Based on market related factors the following dominate the choice of a two wheeler amongst the
students.

1. Company rating.
2. Brand image.

Based on societal factors:

Based on the societal factors the following dominate the choice of a two wheeler amongst
the students.

1. Recommendation by parents.
2. Recommendation by the dealer.
3. Vehicle owned by the friends.

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Based on Economy related factors:

Based on the economy related factors the following dominate the choice of a two wheeler
amongst the students.

1. Cost of the spares.

2. Maintenance cost.
3. Mileage.

Based on Geographical factors:

Based on the geographical factors the following dominate the choice of a two wheeler amongst
the students .

1. Road conditions of the city.

2. Geographical area.

Based on Personality factors:

Based on the personality factors the following dominate the choice of a two-wheeler amongst the
students

1. Looks while driving.

2. Life style factors.

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 APPENDIX

QUESTIONNAIRE

STUDENT PREFERENCES&PERCEPTION

IN TWO WHEELER SECTOR

NAME
COLLEGE
ADDRESS
SIGNATURE

Q.NO.1 Do you own a bike?

Ans . (a)yes (b)no

Q.no.2 what is your age?

Ans. (a) below 16 (b)16-18 (c)18&above

Q.3 which kind of bike do you prefer?

Ans. (a) with gear (b)w/o gear

Q.4 which type of ignition system you’ll prefer in your bike?

Ans.(a) E start (b) kick start

Q.5 which cc bike you would like to prefer?

Ans.(a) <100> (b)125> (c)150> (d)220>

Q.6 which manufacturer you‘ll prefer to buy your bike?

Ans (a)Yamaha (b)Honda (c)Suzuki (d) bajaj (e) tvs (f) hero Honda

Q.7 distance you travel regularly to reach your destination ?

Ans (a) <5kms. (b) 5-15 (c) 15>

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Q.8 does this matter with your selection of bike?

Ans.(a) yes (b)no (c) neutral

Q.9 which type of bike you’ll buy ?

Ans .(a) sports (b) city (c) racing

Q.10 which factor you’ll consider while buying your bike?

Ans. (a) style (b)power (c)mileage (d) safety (e) price

Q.11 what’ll you prefer when choosing your bike time vs. money?

Ans(a)time (b) money

Q.12 which attributes you’d like to have in your ideal bike?

Ans………………………………………………………………………..

…………………………………………………………………………….

……………………………………………………………………………

Thank you.

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