...------------------------------------------------- Two Wheeler Industry ------------------------------------------------- A Microeconomic Analysis ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- By Group 8 ------------------------------------------------- Sarabjot Singh 12P043 ------------------------------------------------- Saurabh Mishra 12P044 ------------------------------------------------- Vineet Gupta 12P045 ------------------------------------------------- Swapnil Sheth 12P046 ------------------------------------------------- Shrey Tandon 12P047 ------------------------------------------------- Shrimoy Tripathy 12P048 Contents Introduction 3 Some industry trends of last 20 years: 4 1. Growth in Sales relative to the Real GDP 4 2. Personal Disposable Income 5 3. Petrol Prices 5 4. WPI of Two wheelers 6 Segment wise Price Trends 7 Regression Analysis 8 Elasticity 10 Price Elasticity 10 Income Elasticity 11 Cross-Price Elasticity 11 Analysis 11 ...
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...Internationalisation of Indian Two Wheeler Industry The aim of the report is to identify and analyze opportunities available for Indian two wheeler automobile companies, Bajaj AUTO, in Brazil. The two wheeler industry has its dominant presence since 1955 worldwide. Two wheeler markets is noticing a continuous upsurge in demand and thus resulting in growing production and sales volume. The demand of two wheeler industry depends mainly on economic stability and average income levels of the country. New innovations and advancements in technology further adds to its growth. It is a high level segment market, increasing at a rate of 8% per annum. Bajaj is a major player in two wheeler industry in India. It is world’s fourth largest two wheeler manufacturer and is well known across several countries with operations sprawling in Latin America, Africa, Middle East and South East Asia. Brazil promises to be an attractive opportunity for expansion of Bajaj and spread its foot print in South American market. Brazil is a part of famous acronym, BRICS, and is one of the major emerging economies in world. Brazil GDP by Nominal is expected to be 1.9 Trillion $ and 3.5 Trillion $ in terms of purchasing power parity. The size of two wheeler industry of Brazil is 2 million units. Brazil two wheeler’s industry is dominated by Honda, which constitutes 81% of market share of two wheeler industry. Brazilian automobile market is known to be different for its specially designed engine, flex technology...
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...all the segments of the two wheelers industry. As a percentage breakup of revenues in FY 2000, 39% was earned through sale of scooters, 22% through motorcycles, 7% via step-thrus, 23% from three wheelers and 3.4% from mopeds. The company is a major player in the 3-wheeler market with almost 81% market share in the year 2000. Traditionally the focus of Bajaj Auto was in the scooters segment in the two wheelers market. But, of late, due to decline in the scooters volume due to shift in consumer preferences, the company has been shifting its focus towards the other high growth segments in the two wheelers. The business mix of Bajaj is constantly changing in line with the changing trends in the two-wheeler market. Now it is is looking towards the motorcycles segment which is expected to witness high growth rates in the future. It is trying hard to cope with the new trends. The unfavorable sales mix due to shift in the consumer preferences from scooters to motorcycles and from step-thrus to scooterettes was instrumental in lowering the margins for Bajaj Auto. To tackle the growing competition and shift in the consumer preferences, Bajaj is entering aggressively into the motorcycles segment to improve its topline growth. In a bid to sustain and expand market share, Bajaj has been increasing its adspend in the recent years apart from offering attractive discounts and incentive schemes to boost sales. The business environment in the two wheelers market has been very dynamic in...
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...INTRODUCTION: Fundamental analysis of a business involves analysing its financial statements and health, its management and competitive advantages, and its competitors and markets. Fundamental analysis includes the economic analysis, industry analysis and the company analysis. There are certain factors that are to be considered while doing the fundamental analysis and it includes Financials of the company It involves the study of financial health of the company using the various financial reports, like the profit and loss account, the balance sheet, and the cash flow statements. State and direction of domestic economy This is a study of the country’s economy in which the company operates. If the economy is growing fast, the probability of the company growing fast is greater. Similarly, if the economy is facing a slow growth, the chances of the company growing fast are lesser. Currency & commodity price movements Most companies use commodities like coal, metals and crude oil as their inputs. Any change in the price of these commodities has an implication on the profitability of the company. Similarly, any change in the exchange rate of currencies also has an impact on companies that import their raw materials or export their products. Interest rate movements Companies borrow money to invest for their expansions. Also, consumers borrow money to buy products. Thus, if the interest rates are high, the borrowing cost of the companies would increase. Also, consumers would...
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...automobile industry is one of the largest industries in India as in many other countries. It plays a major role in the growth of economy in India. The automobile industry in India is the ninth largest in the world with an annual production of over 2.3 million units in 2008. The industry comprises automobiles and auto component sectors, which encompass passenger cars, two-wheelers, three-wheelers, tractors, commercial vehicles, multi- utility vehicles and components. Today, the Indian automobile industry is the world s largest motorcycle manufacturer, the second largest two-wheeler and tractor manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car maker in Asia. Apart from serving the domestic market, the Indian auto sector has also become a sourcing hub for the global auto giants. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Government of India has introduced an ambitious project of setting up world-class automotive testing and R&D infrastructure to place India in the USD 6 trillion global automotive business. This book details the current status and factors influencing the growth of the Indian automobile industry; its future prospects and the success stories of some automobile giants in India. It also focuses on the future growth of the industry as a result of the newly adopted technologies and strategies. India is set to emerge not only as a large domestic market for automotive...
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...A PROJECT REPORT ON “COMPARITIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” FOR HEROHONDA, BAJAJAUTO, TVSMOTOR. SUBMITTED TO TILAK MAHARASHTRA UNIVERSITY IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF BUSINESS ADMINISTRATION (MBA) Submitted By: IRFANHUSEN BHORANIA (Batch 2008-10) Guided By: Prof.R.GANESHAN 1 MAHARASHTRA COSMOPOLITAN EDUCATION SOCIETY’S PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE CAMP PUNE-411001 CERTIFICATE This is certify that BHORANIA IRFANHUSEN student of PAI international centre for management excellence, Maharashtra Cosmopolitan Education society, Pune has completed his field work report on the topic of COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES and has submitted the field work report in partial fulfillment of MBA of the college for the academic year 2008-2010. He has worked under our guidance and direction. The said report is based on bonafide information. Project guide name Prof. R Ganesan Designation Director 2 PAI INTERNATIONAL CENTRE FOR MANAGEMENT EXCELLENCE Maharashtra Cosmopolitan Education Society DECLARATION I hereby declare that the project titled “COMPARATIVE FINANCIAL STUDY OF TOP THREE TWO WHEELER COMPANIES” is an original piece of research work carried out by me under the guidance and supervision of Prof.R.GANESHAN. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfilment of the requirement...
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.............................. 3 OUR FOCUS ................................................................................................................................................ 3 YAMAHA INDIA- A BACKGROUND AND NEED FOR CHANGE IN STRATEGY ....................... 3 YAMAHA‟S CHANGING STRATEGY ..................................................................................................... 4 EXTERNAL ENVIRONMENTAL ANALYSIS ......................................................................................... 5 INDUSTRY ANALYSIS - Two Wheeler Geared Bikes .............................................................................. 8 INDUSTRY ATTRACTIVENESS......................................................................................................... 10 COMPETITIOR‟S ANALYSIS ................................................................................................................. 11 INTERNAL ENVIRONMENT ANALYSIS .............................................................................................. 11 VALUE CHAIN ANALYSIS..................................................................................................................... 11 YAMAHA INDIA‟S RESOURCES ........................................................................................................... 13...
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... Automobile industry globally and in India is one of the key sector to economy. The well-developed Indian automotive industry produces a wide variety of vehicles, passenger cars, light medium and heavy commercial vehicle multi utility vehicles such as jeeps, scooters, motorcycle, mopeds, three wheelers, tractors and other agricultural equipment etc. India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer. The industry currently accounts for almost 7% of the country’s GDP and employs about 19 Million people both directly and indirectly. It’s currently the seventh-largest producer in the world with an average annual production of 17.5 Million vehicles, of which 2.3 Million are exported. The Indian automobile market is estimated to become the 3rd largest in the world by 2016 and will account for more than 5% of global vehicle sales. It is the...
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...Indian two-wheeler industry: Rural India to drive industry's growth 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 demand. 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 in target population has increased significantly during last one decade especially in urban areas. However rural areas and smaller towns still remains considerably underpenetrated market. The authors foresee rising income levels combined with increase in finance penetration in rural areas and smaller towns, the demand for two-wheelers will grow swiftly in short to medium...
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...started production of the Nano from makeshift assembly line at Pantnagar and launched a car in three variants priced between Rs. 123,000 and Rs. 175,000 The Downfall Saga ➢ Tata witnessed a sequential fall in 2010, lowest in November Nano sales was 509 units ➢ Issues like production delays, multiple fire accidents, increasing prices of car, difficulty in getting loan from bank and the stigma attached to buying a cheap car was cited as cause for sales drop. ➢ A car in India was supposed to be a valuable product and Nano being termed as cheap car was not being accepted by middle class. What do they do ? They produce very low cost cars to the indian market. Making cars available to a costumer segment that could previously not afford cars. External Analysis Customer Analysis in the Budget Car Segment Customer Segment |Segment |User Intention | | | |Entry-Compact Car |Lower price, small |47% | Tata Nano, Maruti Alto, Ford | | |cars | |Figo, Maruti WagonR, Hyundai's | | | | |Santro, i10 and Eon and GM's Beat| |Premium-Compact Car |Higher priced, |11% |Maruti Swift, Hyundai i20 and VW | | |probably second car| |Polo...
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...destination to another. The progress of automobile industry tries to full fill this purpose with the help of four wheelers and especially two wheelers. When we take into consideration of our country India, it is a fast growing developing country. This growth can be seen in the field of automobile industry also. India is a very good market of many globalized automobile giant brands like Mercedes-Benz, Vox Wagon, Fiat, Toyota, Hero, Yamaha, Bajaj etc. In this scenario it would be better to mention about the satisfaction of customers who are using the vehicles. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. The customer satisfaction varies from person to person and also one group to another. In the marketing context it is important to understand about the satisfaction level of the customers based on the analysis of data. In earlier periods, i.e. immediately after the independence dependence of foreign technology was banned and manufacturers were forced to localize their products. The automotive industry in our country declined under the government’s stifling restrictions and the Indian buyer was saddled with products of appalling quality. This attempt at self-sufficiency failed miserably because of the industry’s isolation from the best technology. The Japanese and later Korean auto industries were also highly protected in their formative years...
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...Pestle Analysis of the Brazil – Political Analysis – Brazil is currently a country with a stable, proactive government and there is virtually no political instability at the moment. However, things can easily change, as they did throughout the modern history of Brazil. Political conditions can become volatile, and this threat remains from election to election. Business conditions that change rapidly and social extremes that exist don't add to country's attractiveness. Corruption is still a big issue in Brazil. Opening an operation in Brazil may require additional payments to government officials, which can present a big obstacle to entering a market. According to Transparency International, Brazil holds 70th place in level of corruption among 180 countries, higher then such economies as Cuba, Turkey and Bulgaria. Economic Environment – Due to large population and inflow of FDI, Brazil has extremely high potential for growth. The gap between rich and poor is decreasing gradually, and there is a significant trend of growing middle class. Good news is that Central bank has inflation under control and the risk of domestic currency devaluation is low. Brazil's currency, the real, was introduced in 1994, and is largely seen as a success. Currently, it is considered to be overvalued against the dollar, which hurts exports and helps imports. Government is clear when it states that it has equal treatment for both foreign and domestic enterprises. There is abundance of unskilled...
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...manufacturer in the world (Wikipedia Automobile industry). With a population of over 1.2 billion people, India has a huge market potential for automobiles. In the Indian Automobile Industry, India has become a leading center in producing small cars. In the year 2006, Ratan Tata of Tata Motors conceived the idea of a tiny car at an extremely cheap price to capture the potential of the rapidly growing middle class segment. The outcome was the Tata Nano, the world’s cheapest car priced at one lakh INR. Rolled out from Tata Motors as the world’s cheapest car in the year 2009, the indigenous Tata Nano achieved immediate success, fulfilling its promises of a complete car at an affordable price for the middle class masses. The Tata’s had relied rather heavily on the publicity of their product. But rather than leveraging this publicity, Tata became complacent about the communication strategy. The USP of the product, the “cheapest” price tag, had backfired miserably, and actually shunned its sales. The status conscious customer obviously did not want to get associated with the tag of “Poor man’s car”, and would rather opt for slightly pricier rival options. Hence, instead of being perceived as a functional step above the motorcycle as it was intended to be, the Tata Nano started being largely perceived as a cut-price car. The Tata Nano was initially conceived as a safe personal mobility alternative to the huge section of the Indian two wheeler riding population, at an equally competitive...
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...A BUSINESS DEVELOPMENT PLAN TO INCREASE MARKET SHARE OF HERO MOTOCORP LTD.IN AUTOMOBILE MARKET OF INDIA A Business Development Project Prepared By (RAJESH SINGH) (.............................) MASTER OF BUSINESS ADMINISTRATION CARDIFF METROPOLITAN UNIVERSITY (06 JANUARY 2014) Table of Contents EXECUTIVE SUMMARY 5 1.0 introduction 6 1.0.1 INDIAN TWO WHELLER INDUSTRY 6 1.0.2 company background 6 2.0 business opportunities 7 1.3 purpose and rationale 8 1.4 terms of references 8 1.4.1 research questions 8 1.4.2 research objective 8 1.4.3 RESEARCH FREMEWORK 8 2.0 BUSINESS REVIEW 9 BUSINESS REVIEW AND ANALYSIS OF FACTORS 9 2.1 MARKETING STRATEGIES OF HEROMOTOCORP 9 2.2 RESEARCH & DEVELOPMEMT 12 2.3 FINANCIAL FACTORS 14 2.4 CUSTOMER SATISFACTION 16 3.0 RESEARCH DESIGN 17 3.1 DATA MATRIX 18 3.2 RESEARCH METHODLOGY 19 4.0 data analysis 21 4.1SECONDARY DATA ANALYSIS 21 4.1.1 SWOT ANALYSIS OF HERO MOTO CORP 21 4.1.2 pestel analysis 24 4.1.3 poter’s five force model 26 4.2 primary research 27 4.3 business implecation of hero motocorps 34 5.0 business model 36 5.1business model elements 37 6.0 business plan 38 6.1Objective 39 6.2 Marketing plane 40 Marketing mix 41 Ansoff’s matrix for long time 44 EXECUTIVE SUMMARY Hero MotoCorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and...
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...every professional course. The MBA is a course in which the theoretical knowledge is backed by the practical study. That study is in the form of project. The Summer Training Project is one of the important parts of the curriculum. And each and every student has to work for the project. The summer project enables the students to know more about the application of theoretical knowledge. The current situation of the market is made known to the students when they undertake the project. The project gives better insides into the application part of the theory. The companies in an industry and their operations can be better known by the students when they analyze the data, and prepare the grand project. This project is on the analysis of Two Wheeler market of Bajaj, Services of Bajaj dealer and Customer Perception as compared to Hero Honda. We have analyzed the industry very deeply and carefully project. One can know about the current scenario of the Indian Two wheeler industry in India. This project enables the reader to have a look at the position of the Two Wheeler companies of the country. T his is really a matter of...
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