Kinetic Honda Print Version 2

Kinetic Engineering Limited

Chapter 1 INTRODUCTION PART A - AUTOMOBILE HISTORY The Britannica Encyclopedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion internal-combust ion engine (or, less often, by an electric engine). The

motors

on

minibikes,

scooters,

and

mopeds,

or

motorized

velocipedes, are usually air-cooled and range from 25 to 250 cubic cm (1.5

to

15

cubic

inches)

in

displacement;

the

multiple-cylinder

motorcycles have displacements of more than 1300 cubic cm. The automobile was the reply to the 19th-century dream of self-propelling the horse-drawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle. The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steerable front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle

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designs to supercharged, multivalve engines mounted on aerodynamic, carbon-fibre reinforced bodywork. bodywork.

INVENTION The invention of the first two-wheeler is a much-debated issue. "Who invented the first motorcycle?" may seem like a simple question, but the answer is quite complicated. Two-wheelers owe their descent to the "safety" bicycle, i.e., bicycles with front and rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those bicycles, in turn descended from high-wheel bicycles. The high-wheelers descended from an early type of pushbike, without pedals, propelled by the rider's feet pushing against the ground. These appeared around 1800, used iron-banded wagon wheels, and were called "bone-crushers," both for their jarring ride, and their tendency to toss their riders. Gottlieb Daimler (who later teamed up with Karl Benz to form th e Daimler-Benz Corporation) is credited with building the first motorcycle in 1885, one wheel in the front and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the iron-banded wooden-spoked wagon-type, and it definitely had a bone-crusher´ chassis This two-wheeler was powered by a single-cylinder Otto-cycle engine, and may have had a spray-type carburetor. (Wilhelm Maybach, Daimler's assistant, was working on the invention of the spray carburetor at the time). If two wheels with steam propulsion can be called a motorcycle, then the first one may have been American.

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One such machine was demonstrated at fairs and circuses in the eastern US in 1867. This was built by one Sylvester Howard Roper of Roxbury, Massachusetts. There is an existing example of a Roper machine, dated 1869.

A

charcoal-fired

two-cylinder

engine,

whose

connecting

rods

directly drive a crank on the rear wheel, powers it.

ORIGIN OF MOTOR-SCOOTERS Edward Butler, an Englishman, built the first motor tricycle in 1884. The first gasoline-engine motorcycle to appear publicly was built by Gottlieb Daimler, of Bad Cannstatt, Germany, in 1885. The first practical engines and motorcycles were designed by the French and Belgians, followed by British, German,Italian and American makers. The popularity of the vehicle grew, especially after 1910. During World War I the motorcycle was used by all branches of the armed forces in Europe, principally for dispatching. After the war it enjoyed a sport vogue until the Great Depression began in 1929. After World War II a revival of interest in motorcycles lasted into the late 20th century, with the vehicle being used for high speed touring and sport competitions. The practice of attaching auxiliary engines to bicycles in western Europe and parts of the United States led to the development during the 1950s of a new type of light motorcycle, the moped. Originating in Germany as a 50-cubic-centimetre machine with simple controls and low initial cost, it was largely free of licensing and insurance regulations except in Great Britain.

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The more sophisticated motor scooter originated in Italy soon after World War II, led by manufacture of a 125-cubic-centimetre model. Despite strong competition from West Germany, France, Austria, and Britain, the Italian scooters maintained the lead in the diminishing market.

INITIAL HITS Most of the development during this earliest of eras concentrated on three and four-wheeled designs, since it was complex enough to get the machines running without having to worry about them falling over. The next really notable two-wheeler was the Millet of 1892. It used a 5cylinder engine built as the hub of its rear wheel. The cylinders rotated with the wheel, and its crankshaft constituted the rear axle. The first really successful production two-wheeler though, was the Hildebrand & Wolfmueller, patented in Munich in 1894. It had a stepthrough frame, with its fuel tank mounted on the downtube. The engine was a parallel twin, mounted low on the frame, with its cylinders going fore-and-aft. The connecting rods connected directly to a crank on the rear axle, and instead of using heavy flywheels for energy storage between cylinder-firing, it used a pair of stout elastic bands, one on each side outboard of the cylinders, to help out on the compression strokes. It was water-cooled, and had a water tank/radiator built In 1895, the French firm of DeDion-Buton built an engine that was to make the mass production and common use of motorcycles possible. It was a small, light, high revving four-stroke single, and used battery-andcoil ignition, doing away with the troublesome hot-tube. Bore and stroke figures of 50mm by 70mm gave a displacement of 138cc. A total loss

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lubrication system was employed to drip oil into the crankcase through a metering valve, which then sloshed around to lubricate and components

before

dumping

it

on

the

ground

via

a

cool

breather.

DeDion-Buton used this 1/2 horsepower powerplant in roadgoing trikes, but the engine was copied and used by everybody, including Indian and Harley-Davidson in the U.S. Although a gentleman named Pennington built some machines around 1895, the first US production motorcycle was the Orient-Aster, built by the Metz Company in Waltham, Massachusetts in 1898.

INDIAN AUTOMOBILE INDUSTRY The Indian automobile segment can be divided into several segments viz. two-wheelers (motorcycles, geared and ungeared scooters and mopeds), three

wheelers,

commercial

vehicles

(light,

medium

and

h eavy),

passenger cars, utility vehicles (UVs) and tractors. The Indian automobile sector can be divided into several segments: 2 & 3 wheelers, passenger cars, commercial vehicles (Heavy CVs/ Medium CVs/Light CVs), utility vehicles (UVs) and tractors. Demand is linked to economic growth and rise in income levels. To highlight the co-relation, while GNP per capita (gross national product) grew at a CAGR of 11% between FY71-FY01, passenger car production increased by 9%. Per capita penetration across all categories is among the lowest in the world (including other developing economies like Pakistan in segments l ike cars). The industry is highly capital intensive in nature. Though three-wheelers and tractors have low barriers to entry in terms of technology, other

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segments

are

capital

and

technology

intensive.

Costs

involved

in

branding, distribution network and spare parts availability increase entry barriers. With the Indian market moving towards complying with global standards,

capital

expenditure

will

rise

to

attune

to

future

safety

regulations. The industry is highly fragmented in nature. In the last ten years, supply has outstripped demand, as multinationals and domestic players have set up large-scale manufacturing facilities to meet future needs. As a result, there is an absence of pricing power with manufacturers. Competition is expected to increase further, as global majors are planning to enter India either through direct investment or imports. Automobile majors increase profitability by selling more units. As number of units sold increases, average cost of selling incremental unit comes down when demand recovers. This is because the industry has a high fixed cost component. DID YOU KNOW y

India is the 2nd largest two wheeler manufacturer in the world

y

Second largest tractor manufacturer in the world

y

5th largest commercial manufacturer in the world

y

3rd largest car market in Asia, surpassing China in the process

Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the automobile industry in India are attracting big names with the big purse and they are investing vigorously in infrastructure, design and development, and marketing. Automobile industry in India is today poised for the big leap.

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Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is a driver of product and process technologies, and has become a excellent manufacturing base for global players, because of its y

high machine tool capabilities

y

Extremely capable component industry

y

Most of the raw material locally produced

y

Low cost manufacturing base

y

Highly skilled manpower

y

Special capability in supplying large volumes

INDIAN AUTOMOBILE INDUSTRY PERFORMANCE

KEY PLAYERS

402

INVESTMENT

US$ 2.3 BILLION

OUTPUT

US $ 4

EXPORTS

US $ 417 MILLION

EMPLOYMENT

250,000 PERSONS

BILLION

MAJOR PLAYERS IN TWO WHEELER SEGMENT BAJAJ

It is one of India's top ten companies in terms of market capitalization and among the top five in terms of annual turnover. Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collabora tion with Piaggio of Italy in 1960.

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From 1961 when the annual production was about 4000 units, today the Company has become a market leader with annual production in excess of 1.35 million units and with product offerings in all segments (mopeds & scooterettes, scooters, motorcycles, three wheelers).

TVS

TVS, a leading two wheeler company began with the vision of the founder of the Sundaram Clayton Group, the late T.S. Srinivasan - 'to design, develop and produce an affordable moped for the Indian family.' This vision was realized in 1980 when TVS 50, India's first two-seater moped rolled out of the factory at Hosur in Tamil Nadu, Southern India. And today, TVS continues to keep one step ahead of its time by creating India's first 5 speed, 140 cc motorcycle - The Shaolin. The TVS Scooty, a 60 cc Scooterette, is yet another example of the company pioneering a new category and emerging as market leaders in it. As for other wins, 'Team TVS' has conquered every major race and rally in the country from the road to the racetrack, with each of the TVS bikes being a winner. And each ti me the 'Team TVS' has won on the track or o ff it, our customers have secured a better product for their personal transportation.

HERO MOTORS

Hero, a name synonymous with two wheelers in India, began its journey around

four

decades

ago.

Starting

as

a

manufacturer

of

bicycle

components, Hero has today grown into a multi-unit, multi-product, geographically diversified group of companies. Like every success story,

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Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. The search for excellence led to the creation of several companies by the Hero Group. Companies that maintained the ethos of perfect quality, which helped the Group attain its global stature and self-reliance in the entire manufacturing process. Keeping the wheels of progress turning are the individual companies of the Hero Group. Each an independent profit center. Each a success story in its own right. Besides this, the Hero Group has also helped promote more than 300 ancillaries which meet the needs of smaller components, and more than 3,500 dealer outlets, each with its complement of trained mechanics and workers.

HERO HONDA

Hero Honda has a reputation of being the most fuel-efficient and the largest

selling

Indian

motorcycle.

Its

commitment

of

providing

the

customer with excellence is self-evident. A rich background of producing high value products at a reasonable price led the world's l argest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer. It was this affinity in working cultures of Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a Honda record worldwide. Over the years, the Company has received its share of accolades, including the National Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders.

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MARKET SHARE IN AUTOMOBILE SEGMENT ± JUNE 2009

SALES FROM March-Apr il µ2007-08 TO March-Apr il µ2008 -09

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Chapter 2

2.0 RESEARCH DESIGN

2.1 TITLE OF THE STUDY The title of the study is

³A

study on the Consumer Perception

towards Kinetic Vehicles in special reference to KINETICHONDA in Bangalore´.

2.2 STATEMENT OF THE PROBLEM

The Kinetic Engineering Limited has planned for a massive restructuring of Advertising and Promotional Techniques to bite a better pie of the Automobile Market and reduce the risk. Therefore, it has planned to do a series

of

promotional

activities.- Monito r ,

observe,

Participate

&

evaluate the effectiveness of Kinetic Vehicles.

2.3 OBJECTIVES

The objective or aim of a research not only forms the target towards which the project should proceed, but also forms a guiding path to the completion of the project.

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The objectives for performing the study1) 2)

To study the consumer perceptio n Kinetic Honda in Bangalore City. To study how consumers perceive various aspects of Kinetic

Honda.

3)

To study the performance satisfaction of the vehicle.

4)

To study the effectiveness of the after sales services.

5)

To study the consumer expectations on possible improvements to

the bike.

2.4 SCOPE OF THE STUDY

The consumer is the focus of the marketing efforts. The

modern

marketing concept spells out the real significance of buyers behaviour. In the course of operting

the concept, the modern marketing management

tries to sole the basic problems of consumers in the area of consumtion. Solving such consumption problems consumers warrants a thorough understanding of such problem; it involves the concentrated efforts to understand the very buying process and al the factors influencing it further, consumer behaviour is dynamic. It is this dynamic nature that makes it more important making the maketing manager to study, analyse

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and interpret the ever changing consumer behaviour, so that we can monitor the study for the purpose of making sound decisions in respect to the 4 P¶s of the marketing mix. It is consumer predisposition whether positive or negative that makes or mars the profit positions of a given product. The study of buyers behaviour takes us to the roots of why a consumer

has

a

positive

or

a

negative

predisposition

cus tomers

preference at the time of purchasing books. The importance of every feature that comprises a book. Through data analysis and interpretation a broad prospective about the consumer satisfaction towards creossword is analysed. The study help in understanding the preferences of the consumers and their suggestions could be considered for the taking corrective actions.

2.5 OPERTIONAL DEFINITION OF CONCEPTS a) Market Potential:

A Market potential is an estimate of the maximum possible sales opportunities present in a particular market segment and open to all sellers of good service during a stated future period.

b )

Sales Potential:

A sales potential is an estimate of maximum possible sale s opportunities present in a particular market segment open to a specified company selling a good service during a future period. c) Demand:

Demands are the wants for specified products that are acked up by ability and willingness to buy them.

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d) Market Demand:

Market demand for a product or service is the total volume that would be bought by a defined consumer group in a defined geographic area in a defined time period in a defined marketing environment under a defined level and mix of industry marketing effort. e) Forecasting:

It is a systematic attempt to probe the future by inference from known facts. The purpose is to provide management the information on which it bases future planning decision. f) Sales Forecast :

Sales forecast is an estimate of sales, in physical units for a specified future period under a proposed marketing plan or program and under an assumed set of economic

g) Product Launch :

To set or start on particular course of action, engage vigorously and enthusiastically in new activity to introduce a product to the public through publicity campaign.

h) Brand:

A Name, Term, Symbol or Design or a combination of them interned to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

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i) Market share:

The company¶s overall market share is its share expressed as a percentage of total industry sales. j) Perception:

A process by which individuals organize and interpret their sensory impressions in order to give meaning to the environment.

2.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how rseach is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the mehodlogy. Researchers not only need to know to develop certain indices.

The type of research method used for pursuing the study is ANALYTIAL

RESEARCH METHODOLOGY.

2.7.1 SAMPLING

Due to constrain of time and resources a sample size of 100 current and potential customers in Bangalore city were selected.

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Sample unit size : 100 Sampling Procedure : Convenience RANDOM Sampling.

2.7.2 METHODOLOGY

Process of addressing the Research Pro b lem:

The outcome of any research is strongly affected by the choice of research methods and strategies. Therefore, this chapter gives and overview of the research methodology chosen for this thesis. First, a research framework narrows thee research field down. Second, the qualitative research methods are depicted before; finally, the research activities that led to this thesis are presented. The Research framework mainly focuses on the role of understanding consumer buying behaviour and expectrations in case of Indian Automobile. The main research fiels of this thesis is to find out all the possible activities that will help the Indian Automobile to maximize customer satisfaction and increasing their revenue.

2.7.3 TYPE OF RESEARCH AND TOOLS FO R DATA COLLECTION Type of Research: Analytical Study Methods used for Data Collection: Questionnaire Nature of survey : Customer Feed ± Back Survey

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2.7.4 PLAN OF ANALYSIS

The collected data is usually analyzed with the help of statistical tools and techniques such as averages, percentage, dispersion, Correlation, regression, multi ± variant regression, Etc. Further wherever necessary to make the data presentable in a lucid manner tables, diagrams, charts, can also be used. This is the duty of the researcher to specify how the analyses and interpretation of the data of the topic under.

The data put together from he questionnaire put together in the form of tables and tabulated data was analyzed.

Percentages were calculated for every table for the purpose of generalization. Data analysis and interpretation was done on the primary data collected. Inferences were drawn from the anaysis to attain the objectives of the study.

2.8 REFERENCE PERIOD

The study was conducted from 19 t h February,2010 to 26 t h March,2010.

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2.9 LIMITATIONS OF THE STUDY

In spite of the best efforts the study has certain limitations which are unavoidable. Though this study was conducted with the aim of providing accurate information, the research is subject is subject to practical constrains. A complete enumeration of the population was not possible because the study was limited only to a selected number of owners of the vehicle KINETIC HONDA in the city of Bangalore. Due to constrain of time and resources an extensive research could not be undertaken. Therefore, the sample size was restricted to 100. Analysis of data obtained from the questionnaire was done on assumptions that honest and correct information had been given by the respondents. Due to confidentiality of certain information not all the details could be obtained from the company. The targeted customers might not be interested in filling the provided questionnaire which constrains us from obtaining accurate information. As this study was bases on convenience sampling it suffers from all the disadvantages of such a sampling procedure. Despite limitation an honest and sincer e effort has been made to extract best possible information.

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2.10 OVERVIEW OF CHAPTER SCHEME

Chapter 1 : INTRODUCTION

This chapter deals with the history of KINETIC ENGINEERING LTD. And introduction to marketing,customer satisfaction and customer relationship marketing.

Chapter 2

:

RESEARCH DESIGN

This chapter deals with the design of the study comprising statement of the problem, objectives operational definition of concept. Besides this includes plan of analysis, sampling procedure, source of data, scope of the study and limitations of the study.

CHAPTER 3 : Company Profile This chapter deals with the background of the Kinetic Engineering LTD. And its various divisions and the poduct profile of the company.

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CHAPTER 4 : Analysis and Interpretation

This chapter deals with the classification and tabulation of data, analysis and interpretation and summarizing of findings.

CHAPTER 5 : Findings of the Study This chapter deals with the findi ngs of the study during the survey made. The entire finding are totally based on the questionnaire which has been filled up by the respondents.

CHAPTER 6 : Suggestions And Conclusions

This chapter Deals with the Conclusions which have been drawn and the entire study and finally giving suggestions on the study.

BIBLIOGRAPHY : it the references made such as the books,

news, articles, journals and websites.

ANNEXURE : it is the additional material used in the project

report.

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SWOT ANALYSIS

SWOT

Analysis

refers

to

analysis

of Strengths,

Weaknesses,

Opportunities, and Threats", possessed and faced by an Organization.

STRENGTHS



Among the Leaders in 2-wheeler segment: With the large Urban customer base presence across the country, Kinetic vehicles have made their presence as one among the leaders in 2-weeler segment.



World

class

automation

and

Quality:

The

Quality

and

automation technology of Kinetic Industries in production has brought the Company into lime-light. 

Expertise in technology: In the technological aspect, Kinetic Industries are being referred as among the best achievers in technological expertise.



Kinetic brand image:

In spite of competitor activities the

average Indian consumer still associates Kinetic brand as a good quality moped in all the nook and the corner of the country. 

Kinetic employees: High commitment of staff and officers of

the

Organization to not only survive but to turnaround the operations of the unit in their long term interests of the Company.

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WEAKNESS



Poor promotional measures: The promotional strategies though being effective and strong, arent being executed properly at the lower level of the Organization.



Lower brand name: The brand name of the Company I sonly limited to Urban class of the society and still isnt effective in certain sections there either.



Company is satisfied with past glory: Kinetic vehicles were the first mopeds on the Urban roads to attract the large section of the Urban society. But cudnt hold that effectiveness in the coming years, because of its satisfaction with past glory.



Very Poor and non-promotive dealer network: The dealer network of Kinetic vehicles around, is very poor in customer servicing and satisfaction as well as non-promotive.



Not targeting rural segment: Kinetic Industries have completely ignored the very huge rural segment of the nation.

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OPPORTUNITIES



Fuel efficient vehicles are expected by the market: The now market is expecting more of fuel efficient vehicles rather than style and looks. This can be an opportunity for Kinetic R&D department to work upon fuel efficient Kinetic vehicles.



Scooterette market is Picking up: With more of the female raiders going around, the scooterette market is picking up, which is an opportunity for the Organization.



New technology will improve productivity and decrease production cost: More the production lesser would be production cost with the reduction in the fixed cost of production. The new technology inducted recently in the production units would improve productivity and decrease production cost.



Innovations and Quality: With some innovations and balancing plant, high quality specialized vehicles can be produced which are outside the known capabilities of most competitors presently operating in automobile sector.



View upon niche market: The combination of cost effective vehicles with movements of different calibers, a whole new niche of market segments can be created with new value addition prospects and thereby buffering the bottom line.

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THREATS



Government laws: The often changing laws of Government are a major threat to the Organization¶s strategies.



Foreign competitors are entering market : Apart from domestic competitors, more and more foreign competitors are entering into market not only through direct entries but also acquisitions and mergers, making it a major threat.



Every competitor is going for increasing their market share: The present mode of operations cannot be continued indefinitely and may lead to losses for the Company because every competitor is trying their best to increase their market share.

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Chapter 3

COMPANY PROFILE Kinetic Engineering Ltd., founded in the year 1970, is the leading manufacturer and exporter of 2-wheelers. Born of the vision of the late Shri H. K. Firodia, Kinetic Engineering Ltd., have engineered heartwinning products for over two decades. KEL manufactures a wide range of Mopeds, Scooters and Motorcycles that are very popular in the country and are well recognised for their fuel economy, quality and reliability. KEL has 3 manufacturing plants at Ahmednagar(for scooterettes and mopeds), Pitampur(for scooters) (Indore) and Goregaon (for motorcycles and step-thrus), with the capacity to manufacture 4 lakh vehicles per year. Their well endowed technologically advanced manufacturings set up have enabled them to reach high quality standards. The company also exports these vehicles to countries like USA, Canada, Sweden, Latin America, Denmark and the Middle-East. The company has always been conscious of quality and customer oriented production. A strong service network set up across India backs Kinetic Engineering Ltd. Kinetic Engineering are also the promoters of Kinetic Honda Motor Ltd., a joint venture with the internationally known Honda Motor Company of Japan. The Kinetic Honda ± 100cc bike is a very popular choice among two wheeler motorists in the country Kinetic Engineering Limited, the flagship company of the Kinetic Group comprises of Kinetic Engineering Limited, Kinetic Motor Company Ltd.,

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Kinetic Communications Ltd., Kinetic Transportation Ltd., Jaihind Sciaky Ltd., Kinetic Fincap Ltd. and Kinetic Lease and Finance Ltd. - the two finance companies of the Group. Kinetic Engineering Limited is also associated with Bajaj Tempo Ltd., a part of the Firodia enterprises, which manufactures light commercial vehicles, jeeps and tractors. Kinetic is synonymous with innovation and pioneering capabilities. It is the company, which brought the first moped, the Luna, to India in 1972. Luna is now generic to mopeds. Kinetic has also been the pioneer in bringing modern scooters to India in the form of the Kinetic ZX, DX, and Marvel, under the erstwhile Kinetic Honda Motor Company Limited. Recently, the group wrote history by being the first Indian JV partner to buy out the foreign majority shareholder, especially of a multinational giant like Honda. The company now joins the Kinetic fold as Kinetic Motor Company Ltd. The new scenario is very bright for KMCL. It is a win - win situation for both parties concerned. Honda is committed to providing technical assistance to post - JV KMCL, including parts supplies , exchange of technicians, exports under the Honda brand name and exclusive rights for the manufacture and sale of the erstwhile KHML products namely, the DX / ZX and Marvel scooters. Thus Kinetic is now gearing itself to meet the challenges of the millennium. Kinetic's brand equity has been strengthened by the success of SAFARI V2, a 60cc bike. The bike was developed keeping in mind the needs of the customers who wanted a load carrier and a rugged machine to tackle the rough terrain of Southern India. The vehicle's rugged chassis allows it to travel with ease over

long

distances

with

heavy

loads,

with

the

least

am ount

of

maintenance issues. K4-100 has been acclaimed as "India's most fuel efficient

bike",

by

auto

critics.

Kinetics'

future

plans

incl ude

the

introduction of a range of 4 stroke motor cycles for the rural and urban segments in the next 2 years. With Kinetic having indigenized the 4stroke technology, its vehicles would boast of a price advantage among

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other benefits, which will be offered to the customers. Kinetics' product extension strategy is supported by three core strategic factors: First Kinetic has been awarded ISO 9001 certification in recognition of its stringent quality control. This covers all the functions from manufacturing to customer service. Secondly, the company has a strong dealer network of over 450 dealers and service points. This network ensures Kinetics' presence even in remote regions and its endeavor towards customer service.

VISION To strive for excellence through supply of products comparable to international standards and total performance leadership.

MISSION 

To establish ourselves as one of the leading companies in the manufacture of automobile, be globally competitive, with a prime focus on quality products & customer satisfaction.



To achieve sustained growth and to improve the quality of work life for the employees.



To provide the best services to the customers with promptness and achieve customers delight.

COMMITMENT 

Strive continuously to assure you of highest standard of service



Strive to attain international standards to become globally competitive.



Acknowledge all correspondence from you within a reasonable time of its receipt



Adhere to the delivery schedules committed by us to you

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

Always maintain the highest ethical standards in all our endeavors, business and economic activities



Always strive to achieve economy in all our products and services without compromising the quality standards



Always remain competitive through continuous improvement in our technology



Always be honest and transparent and would like to be seen as honest.



Implement all the policies and directives of Central Vigilance Commission.

Corporate Objectives & Goals y

To encourage the modernization of Indian Industry through the supply of engineering goods and automotives as well as services of world class excellence

y

To maintain technological leadership through continuous efforts to update product technology and manufacturing methods

y

To globalize our operations by developing a mix of international markets and businesses

y

To ensure a satisfactory return on capital employed, to meet the growth needs and the aspirations of our stakeholders

y

To present an active, pleasant and productive working environment.

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Kinetic Honda

Kinetic Honda is the name given to a gearless automatic motor scooters , made

in India by the Kinetic Motor Company , whilst they were in partnership with the Japanese company Honda. They were sold from 1985 to 1998²at point which the partnership was terminated²and are still in common usage all over India. They use continuously variable transmission and have an air-cooled engine. The scooters are based on the Honda NH series . A continuously variable transmission is a transmission which can change steplessly through an infinite number of effective gear ratios between maximum and minimum values. This contrasts with other mechanical transmissions that only allow a few different distinct gear ratios to be selected. The flexibility of a CVT allows the driving shaft to maintain a constant angular velocity over a range of output velocities. This can provide better fuel economy than other transmissions by enabling

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the engine to run at its most efficient RPM for a range of vehicle speeds. Alternatively it can be used to maximize the performance of a vehicle by allowing the engine to turn at the RPM at which it produces peak power. This is typically higher than the RPM that achieves peak efficiency.

Original versions



1984: Kinetic DX (98cc, 2-stroke, single mirror, black plastic finish)



1984: Kinetic EX (98cc, 2-stroke, single mirror, black plastic finish, no indicators(replaced by black blocks), limited colour versions)



1994: Kinetic ZX (98cc, 2-stroke, double mirror, wind shield, more graphical stickers, grey plastic finish)

Later versions 

2000: Kinetic Honda (110cc,2-Stroke)



2001: Kinetic ZX Zoom (110cc, 2-stroke. Otherwise as the ZX)



2005: Kinetic 4s (113.5cc, 4-stroke)

World records The Kinetic Honda holds three World Records:   

1989: Travelling to highest motorable road-Khardungla 1990: Day & night non-stop riding for 1001 hours+ 1991/92: Crossing of Sahara Desert with a fuel consumption same as a small car

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KEY MILESTONES IN THE HISTORY OF KINETIC

1964

Foundry and Plant of Jay hind Industries set up.

1970

Kinetic Engineering Ltd, incorporated for the purpose of Manufacturing.

1974

Jayahind Sciaky, set up in collaboration with Sciaky Intertechnique S.A. of Switzerland.

1980

Kinetic group joins hands with Twentieth Century Finance.co

Corp.

And Integrated Finance Ltd., to float Joint Venture Finance Companies to finance Kinetic 2 wheelers.

1981

ZF Steering Gear India Ltd. Launched. (Kinetic enters into collaboration with Zahnradfabrik Friedchshafen A.G. of West Germany).

1984

Kinetic Group enters into collaboration with Honda Motor Company of Japan and a new company Kinetic Honda Motor LLtd. is born.

1996

Kinetic group takes over Integrated Kinetic Fincap Finance

Ltd and

Ltd and the company is renamed as Kinetic Lease and Finance

ltd. 1996

Kinetic collaborates with Hyundai Corporation of South Korea form a new company - Kinetic Trans Products Ltd.

1997

Kinetic group take over Twentieth Century Kinetic Finance

and the

and the company is now rena med as Kinetic Fincap Ltd.

1998

History is created as Kinetic acquires major stakes in Kinetic Honda Motors Ltd.

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1998

Kinetic

Communications

Limited

set

up

in

technology

&

license

license agreement with Daewoo Electronics Limited of South

Korea, for Korea, for manufacturing trading and marketing of Colour Monitors for PC's. 1999

Kinetic Motor Company Ltd. is formally incorporated.

2000

Kinetic eBiz is launched.

GROUP COMPANIES

:

KINETIC ENGINEERING LIMITED, KINETIC MOTOR COMPANY LTD. KINETIC COMMUNICATIONS LTD., KINETIC LEASE AND FINANCE LTD KINETIC TRANSPORTATION LTD., JAI HIND SCIAKY LTD., KINETIC FINCAP LTD. AND KINETIC MARKETING AND SERVICES

KINETIC ENGINEERING LIMITED

Kinetic Engineering Limited is part of the Kinetic group of companies, a leading manufacturer of two wheelers in India. Kinetic Engineering pioneered the concept of personalized transportation in India with the launch of popular and affordable moped Luna in 1970. Since

then

MSRCASC

the

company

has

expanded

aggressively

and

- 32

now


manufactures a wide range of vehicles in the popular segments of motorcycles, mopeds and step through.

KINETIC MOTOR COMPANY LIMITED

Kinetic Motor Company Limited is part of the Kinetic group of companies, a leading manufacturer of two wheelers in India. Kinetic Motor began in 1984 as a Joint Venture with Honda Motor of Japan, to manufacture and market advanced scooters in India. The company soon became renowned for having revolutionized the scooter market with its introduction of a modern scooter featuring modern styling. variomatic gearless transmission, self start and several other comfort and conveniece features. In 1998, the arrangement with Honda Motor was realigned as a technical collaboration. With that, the company became the first Indian company to buy out the controlling stake from its foreign partner. After the realignment the company has posted major growth in sales and profitability, introduced new models and made several key improvements in all products.

KINETIC MARKETING AND SERVICES

The two wheeler industry is growing at an impressive rate of 8-9 % every year with growth rates varying across the different sub segments. The industry which at one time consisted of only scooters and mopeds now comprises of a range of new vehicles, all respectively classified under mopeds, scooterettes, scooters, step thru bikes and motorcycles. With a whole new gamut of models available in this high growth industry, it has

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become all the more difficult for a customer to select and finalize a vehicle which is as per his needs and expectations and is, at the same time, affordable to his pocket. To cater to the demands of these customers in this highly cluttered and competitive industry, Kinetic has taken the bold initiative of launching a new company, set to revolutionize the way automobiles are sold in India! Kinetic Marketing & Services Pvt. Ltd has been incorporated to sell Kinetic two wheelers directly to the end user. Servicing will be provided by Kinetic's Authorized Sales & Service Centers. With this new Direct Sales Channel, Kinetic intends to capitalize on its full range of vehicles and make the task of choosing and selecting a suitable vehicle much easier. With this new distribution channel in place, a customer will get the comfort of choosing a vehicle, sitting at home or office, without having to go through the hassle of visiting different showrooms. Under the new system, the fully trained sales force will directly approach the customer at his place of work or home, explain the product features, benefits and advantages in detail, offer test rides so that the customer can have firsthand experience & feel about the vehicle and offer suitable house finance schemes.

ACHIEVEMENTS Kinetic has achieved what nobody else has before! And that too twice so when you ride a kinetic, you ride a Guinness World Record holder!!

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KARDUNGLA PASS - T HE HIGHEST MOTORABLE ROAD IN THE WORLD

Kinetic scooter has set its mark where no other two wheeler has done so. It has reached the highest motorable road in the world - the Kardungla Pass (near Leh).

LONGEST RUNNING- 1001 HOURS OF CONTINUOUS RUNNING.

Kinetic scooter has achieved the feat of 1001 hours of continuous endurance running. The earlier record was for 500 hours held by a Yamaha motorcycle.

KASHMIR TO KANYAKUMARI - IN 38.76 LITERS ONLY!

Kinetic K4, the 4 stroke motorcycle, successfully completed a distance of 3591 kms from Kashmir to Kanyakumari in just 38.76 litres of petrol, recording an on road mileage of 92.6 km / ltr. The

rally

was

conducted

by

riders

of

the

Pune

Garage

Owners

Association, and completed within 13 days. It passed through rough terrain and rain, a natural endurance test, and was accompanied by auto journalist Mr. Dilip Bam - an independent observer and an accreditation agency.

WON A RACE AGAINST DECCAN QUEEN TRAIN !

To demonstrate the excellent engineering behind their design, Kinetic products have twice accomplished the feat of successfully racing against the popular train "Deccan Queen" on the Pune - Mumbai route. Flagged off from the Pune Station in the presence of press journalists, the Police Commissioner and the enthusiastic and supporting public,

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three Luna vehicles raced against the Deccan Queen and in a record feat reaching Dada r station at Mumbai 15 minutes ahead of the train. KINETIC SCOOTERS CROSS SAHARA DESERT !

In an effort to prove its engineering, Kinetic scooters, in 1995, passed the endurance test by crossing the Sahara Desert. Ridden by the eminent auto

journalist

and

now

the

editor

of

the

popular

auto

magazine

Overdrive, it crossed the complete desert area and successfully proved its endurance and ruggedness under very hostile circumstances.

PRODUCTS

Kinetic makes and sells a complete range of two wheelers from mopeds, scooters

to

motorcycles!

We

have

a

product

to

suit

every

preference and pocket. MOTORCYCLES y

Kinetic King ± Double role bike

y

Kinetic Aquila ± India¶s only real cruiser

y

Kinetic GF Laser ± Premium, sporty motorcycle

y

Kinetic GF 170 City ± high performance motorcycle

y

Kinetic GF 125 ± 4valve, stylish motorcycle

y

Kinetic Velocity ± Perfect urban commuter!

y

Kinetic Challenger ± handsome, affordable commuter

y

Kinetic Boss 115 ± Socho to bada socho!

y

Kinetic Boss EX ± Best value for money motorcycl e

SCOOTERS y

Kinetic Nova 135 ± Say AAHO!

y

Kinetic Nova EX ± 4 stroke Scooter of the Year

y

KINETIC HONDA ± Revolution of scooters.

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need,


y

Kinetic Zoom ± India¶s most loved scooter

y

Kinetic Blaze - CATCH ME IF YOU CAN

SCOOTERETTES y

Zing 80 - Perfect scooterette!

y

Kinetic Zing ± youthmobile

y

Zing Rockin¶ Series ± scooterette with unique features like mobile chargepoint, and more..

y

Kinetic Style ± spacious, powerful scooterette

STEPTHROUGH y

K4 80 ± India¶s most fuel efficient two wheeler

MOPEDS y

V2 Range ± Solid moped for load carrying

y

Luna Range ± simple, economical and efficient!

\\\\\\\\\\\\\\\\\\\\

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ORGANISATION STRUCTURE

LEADERSHIP OUR FOUNDER

Kinetic group, with the flagship company of Kinetic Engineering Limited, was founded by Late Shri. H.K. Firodia fondly remembered as the Doyen of Indian Automobile Industry. He was a man who nearly single handedly laid the foundations of the now thriving Indian Automobile Industry.

CHAIRMAN - MR. ARUN FIRODIA

Arun Firodia is the founder and Chairman of the Kinetic Group of companies and is one of the most respected

industrialists

in

India.

He

is

widely

acknowledged as a visionary and a technocrat. He is a member of the Executive Committee of AIAM (Association of Indian Automobile Manufacturers) and of FICCI. He is currently the President of MCCIA (Mahratta Chamber of Commerce, Industries and Agriculture). Mr. Firodia holds a B Tech from the Indian Institute of Technology, a Masters in electrical engineering from the Massachusetts Institute of Technology and an MBA from the Sloan School of Management. He is deeply interested and committed to Science and Technology and has insituted "the H K Firodia awards in Science and technology". MSRCASC

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Ms. SULAJJA FIRODIA MOTWANI

Sulajja Firodia Motwani has been working as the Joint

Managing

Director

at

Kinetic,

and

the

Managing Director of Kinetic Finance for the past four years. She is in charge of the companies' strategy, sales, marketing and finance activities. She was recently featured as a business "Face of the Millennium" by India Today; and was voted among the top 25 business leaders of the next century in a poll of industrialists conducted by Fortune India. Prior to joining Kinetic, Sulajja worked at BARRA, a finance portfolio management company in Berkley and also launched their Indian office. Sulajja has an MBA in marketing and finance from Carnegie Mellon University. When Sulajja is not launching new products in the market, she plays Badminton and has participated in several National tournaments between 1986 - 89. Her other areas of interest include playing golf, spending time with her family, reading and skiing.

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INFRASTRUCTURE AND SUPPORT

DEDICATED TEAM : An experienced and dedicated team supports our

international trade relations. Each marketing manager is experienced in International Trade and customs, currency, practices, politics, economics and current happenings in respective markets.

SINGLE

WINDOW

COMMUNICATION :

A

designated

Marketing

Professional fully conversant with products & international operations to take care of each importers requirements Strong trading companies wanting to venture newly in two-wheelers business are welcome. We can offer related business know-how and information.

HOMOLOGATION EXPERTISE : As required, vehicles can be modified to

suit importing countries traffic and statutory regulations. This involves engine tuning to comply exhaust emission, noise, braking and host of other requirements.

MANUFACTURING QUALITY : All models manufactured in-house with

over 30 years of engineering and production expertise and highest quality standards.

RELIABLE DELIVERY : Orders dispatched in 30 days ex-factory. Delivery

schedules are worked jointly to meet importers needs.

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SPECIAL CRASH DELIVERIES : Advance production against importers

forward requisition is undertaken in case of tight delivery schedules.

AFTER SALES SERVICE SUPPORT :

-

Special service tools supplied for each model Spare parts supplied with containers Adequate warranty support provided Product service training imparted at site

PACKAGING : Tailor-made packing of vehicles can be offered intended to

save custom duties.

LOGISTICS :

- Efficient and cost competitive logistic arrangements from world¶s top shipping companies - Logistic expertise by a professional in-house team

PROMOTION

SUPPORT :

Product

Promotion

Support

available

proportionate to volumes.

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ORGANISTION STRUCTURE OF KINETIC ENGINEERING LIMTED COMPANY

Quality Department

Human Resource Department

Marketing Department

Management Information System

Finance Department

The Organization has been built upon structured principles and consists basically of three tier systems.

TOP LEVEL MANAGEMENT

MIDDLE LEVEL MANAGEMENT

LOW LEVEL MANAGEMANT

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MARKETING DEPARTMENT In kinetic, the marketing function encompasses market research, quality assurance and service functions.

MARKET RESEARCH In this department, periodical surveys are conducted to know th e customer's

mind

about

the

product.

Researchers

employ

marketing

research techniques to evaluate the products in the market place. Feed back and suggestion

are taken

from the existing and prospective

customers. The company gets to know their position in the market scenario

vis-a

vis

others.

This

results

in

possible

n ew

product

developments as well as modifying the existing products.

MARKETING FUNCTIONS Marketing is one of the vital functions in kinetic. The prime function of this department is to promote its brand to the public, after knowing the customer's mind. The customer's mind is studied through a market research conducted by the company. After this, the company markets their products to the customers through different means. For this the company includes the sales as well as the advertising strategies. The company performs activities such as y

Promotion

y

Television advertisements

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y

Newspaper advertisements

y

Magazine advertisements

y

Internet

y

Conducting shows

y

Giving / sticking posters

y

Giving leaflets

QUALITY ASSURANCE In his phase the Quality assurance is given to the product. The Quality assurance Is given on the basis of following reasons y

The assurance is given on the basis of the looks of the product

y

The assu rance i s given on the basis of t he style.

y

The assurance is given on the basis of the performance.

y

The assurance is given on the basis of the mileage.

y

The assurance is given on the basis of the price.

SERVICE FUNCTIONS The service function and marketing function have close link between each other. Once the product has been marketed it is followed by service. The service function has the vital in the organization. If this department doesn't

function

well,

it

would

lead

to

dissatisfaction

among

customers and ultimately would lose their image in the market.

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the The


service department performs functions such as taking feedback from the field i.e., through the dealers, customers, and local mechanics. It performs activities such as y

free service camps

y

conducting emission check

y

holding customer meet

y

holding dealership meet

y

holding service meet

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Organization Chart-Marketing and Service

CMD

JMD

MD DGM (SERV) VP(S & M) ZH AGM SALES B/W

AGM SALES B/W

GM (MKTG)

AGM SALES B/W

AGM SALES B/W MGR (SER)

RM

AGM (MKTG)

SR. SER ENG

DY. MG.

A. MGR

MGR (MKTG)

SR. ENG

TRAINEE

GR. OFF

OFF. (MKTG) S. OFF

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MANUFACTURING AND LOGISTICS DEPARTMENT FUNCTIONS : Kinetic products are manufactured at different parts of the country. They are as fallows At Goregaon Bheema Factory - Mobikes and Stepthroughs are been

y

manufactured At Ahmednagar Factory - Scooterettes and Mopeds are been

y

manufactured At Pitampur(Indor e) Factory ± Scooters are been

y

Manufactured The organization manufactures the vehicle's chassis and engine which includes the engine related parts, crank case and block piston. The product is manufactured by passing through 3 stages I.

Assembly line - for fixing the different

parts of the product by

using Pneumatic tools II.

Heat treatment - the chassis is manufactured by first passing

through a heat treatment process. III.

Colour treatment - the product goes to the paint shop for giving

Different attractive colour shades for the product. After passing through these stages, the finished product comes into being y

Then it goes for testing

y

Then the product gets quality check / quality assurance.

y

After this, the product is sent to the company godown.

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y

From these godowns it is further dispatched to the different dealers and company stockiest

HUMAN RESOURCE DEPARTMENT The function of Human Resource department is to acquire, train, develop and retain the human resources of the organization so that with the help of these human resources, the organization is able to achieve its goal.

THE CULTURE

The most prized asset of kinetic is its employees. Continuous training and

retraining;

a

positive

work

culture

and

participative

sty le

of

management has resulted in the development of a committed and motivated work force who is ready to meet any challenge. In addition to its casual business attire and informal--yet professional--work attitude, it¶s

proud

of

the

open-door

policy

between

the

staff

and

upper

management. Kinetic also foster good working relationships through activities beyond work

FUNCTIONS OF HRM

The major function of kinetic¶s HR department is to manage people at work. Managing people not only refers to workers but also includes white collared professionals. The main objective of Kinetic¶s HR department is to maintain the cordial relationship by providing maximum welfare and thereby optimizing the personal contribution to the effective working of the organization.

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The activities carried out by Human Resource department are y

Manpower Planning

y

Induction of the New employees

y

Performance Appraisal

y

Organization Development

y

Training and Development

y

Employee Counseling

y

Industrial Relations

MANPOWER PLANNING

The first and foremost thing to be done is to plan the requirement of manpower for the organisation for fulfilling its goals and at the same time optimizing optimizing it, so that the expenditure of the company should decrease. So manpower requirement in each department is planned accordingly to its kind of functioning

RECRUITMENT AND SELECTION

It is the process of locating and choosing the sources from which the required person could be obtained and considered for appointment. The choice among the potential candidates will depend upon the criteria relating to age, qualification, experience, etc. kinetic is an equal opportunity employer and makes all employment decisions

without

regard

to

race,

sex,

religion,

nation al

origin,

citizenship, disability, age, sexual orientation, political affiliation or any other criterion prohibited by law.

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INDUCTION OF THE NEW EMPLOYEE

This is the first time the employee and organisation come in contact after the relationship of employer and employee is established. The aim of the induction process is to familiarise the new employee with the organisation so that the apprehensiveness of the employee entering the new organisation is dispelled as fast as possible. Thus by this process helps kinetic in inducing the organisation culture in the new employee. It is not only relevant for employees working for the first time but also for employees with prior experience. This is because the employees with prior experience will be used to a certain style of working and a certain organisation culture and they have to be introduced to the culture of the current organisation. PERFORMANCE APPRAISAL

The meaning of the word "appraisal" is "to fix a price or value f or something". This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal is a process in which one values the employee contribution and worth to the organisation. The objectives of performance appraisal are: 1.

To help better current performances

2.

To help in development of the employee.

3.

To determine training and development needs.

4.

To give employee feedback and counsel them

5.

To review performance for salary purposes.

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ORGANISATION DEVELOPMENT

Organisation development can be said to be the development of the organisation

through

the

development

of

employees

the

development

of

through

its the

employees development

and

the

of

the

organisation. Organisation development will not only take place within the entire organisation but also within sub groups. The role of HR person is more subtle and subjective. The HR person will bring changes in the thinking of its employees to bring about a change in the organisation culture. For this the HR person has to constantly strive to create a continuously learning organisation. It must enable the employee to recognise that learning and change is basically the same thing. Thus they have a big role in the development of the organisation.

TRAINING AND DEVELOPMENT

Training can be defined as process which helps people to learn. From an organisation point of view it would have a specific aim of making the employee more effective in his work. Training in organisation is oriented more towards the needs of the organisation rather than the individual. However organisations are now waking up to the individual needs of the employee too and are mixing the training programs so that both the needs are met. The main objective of training will be to make the employee more productive at his work and also at developing the employee for the future.

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The HR person will normally frame a training policy. This policy will normally be in line with the overall policy of the organisation.

EMPLOYEE COUNSELLING AND WELFARE

Employee counseling and welfare can be said to be the organisation trying to take care of the employee .The reason for this are plenty. They range from Not letting personal affairs affect the productivity and hence profits. 1.

Taking it as a social responsibility.

2.

To be seen as a benevole nt employer in the eyes of the employee as well as the society.

3.

The above reason also serves as good PR tool for the organisation to be called as caring organisation Typically this would entail: a.

Canteen policy

b.

Medical benefits

c.

Employee loans

d.

Housing facilities

e.

Pension schemes

f.

Investment and tax advice .

g.

Recreation facilities

h.

Transpor t facilities.

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INDUSTRIAL RELATIONS

Industrial relations is basically concerned with the relation between workers and management. However as we move from an industrial business structure to a knowledge based business structure, the term "industrial" is being replaced by "employee". The HR person¶s aim in maintaining employee relations is that employees remain committed to the organisation and remain productive. The

quality

of

relationship

that

the

organisation

shares

w ith

its

employees is central to the business goal of the organisation and to the health of the organisation. Organisations try to have control of employees in a fair manner by encouraging them to perform better. In tackling employee relations the skill sets needed of a HR person are a.

Good communication skills

b.

Good bargaining skills as demands may sometimes get out of hand

c.

Counselin g and decision making skills

d.

Empathy

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Organisation Chart-Human Resource Department CMD

JMD

MD

VP(HRM)

GM (HRM)

AGM (HRM) MGRInduction

MGRTr aining & Development

MGR (HRM)

MGROrganisational Development

MGRIndustrial Relations

OFF. (HRM)

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FINANCE DEPARTMENT

Every organization irrespective of its size and mission may be viewed as a financial entity. Financial management is broadly concerned with the acquisition and use of funds by a business firm. Finance to any organization is like blood to human body. Financial management in many ways is an integral part of jobs of managers who are involved in planning, allocation of resources, and control. There are however, many tasks of finance and allied areas which are specialized in nature and which are attended to by specialists. The important functions of the financial department are:y

Internal audit

y

Books & Budget

y

Establishment

y

Commercial Department

INTERNAL AUDIT

Internal audit takes care to maintain the requirement and condition mentioned in various section of companies act 1956. All the audit work is carried out in accordance to the law prevailing. In case of absence of law, manual that contains the principles and procedures is followed. Quarterly audit reports are prepared and submitted to corporate office. Also a monthly statement is made available to the employees of finance department through networked computer system. Important activities of internal audit are:y

Purchase order audit.

y

Finance audit

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y

Commercial contracts

y

Site audit

y

Special study.

BOOKS & BUDGET

BOOKS

Books section of finance department tries to support the various accounting functions. It tries to ensure a proper coordination among various sections of finance department in maintaining accounts. Books section on the basis of the statement received from other section prepares monthly trial balance and quarterly balance sheet. The internal audit helps in maintaining transparency and stability. BUDGET

The corporate office sets yearly budgets and targets. Such set budgets and targets are communicated to the other regional offices. Monthly statements are prepared to identify the deviations of the actual from the targets or budget. The commonly prepared statements are:-

y

Projected turnover

y

Projected cash flo w

y

Projected profit & loss account

y

Project balance sheet

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ESTABLISHMENT

This function mainly deals with components of salary. An important factor for determining salary is attendance. The computer records the attendance of the employees through swipe-in-cards. The salary includes the following:y

Basic pay

y

DA(dearness allowance)

y

HRA(House rent allowance)

y

Conveyance allowance

COMMERCIAL SECTION

y

Preparation of turnover plans

y

Periodical monitoring of the achievements and comparing it with the set standard

y

Billing, invoicing and dispatch.

CASH SECTION

The cash section makes payment through issuing of cheques. All bills are made available to cash section through networked computers. Cash section also makes direct payment in cash for bills below 20000. A cash counter is made available where cash is issued against vouchers of payment.

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Organization Chart- Finance Department

CMD

JMD

MD

VP (Finance)

GM (Finance) Deputy Manager

Pre-audit Wing

Asst. Manager

Asst. Manager

Asst. Manager

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MANAGEMENT INFORMATION SYSTEM DEPARTMENT

Organization has grown in complexity to levels, which are unprecedented, and information plays a vital role in holding together and co-coordinating organization. Information is the mortar that holds together the edifice in the modern multiproduct, multioccupied, multilocation and multidivisional organizations. MIS department of Kinetic Engineering Limited plays a very important and efficient role for the organization and its integration and co-ordination. The computerized office work is handled in this department. They are working towards networking to make the whole organization Atomize and inter-connect different department like Accounts, Marketing, Human Resources, Administration section, etc. through the network of computers and for easy handling of the different departments and smooth flow of information.

Objectives:1) To integrate the different department of an organization. 2) To provide information for decision-making. 3) To collect and store data and furnish it as and when required by different levels of management. 4) To keep informing about the activities at different levels of organization to the top-level management. 5) To furnish information to board for decision-making. 6) To co-ordinate the different activities and help in smooth functioning of the organization.

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Functions:-

The functions of MIS dept in Kinetic Engineering Limited are as under:1) To furnish monthly, quarterly, half yearly and annual reports. 2) Collect the data from internal and external sources, compile it and store it as and when required by the organization. 3) Providing information to the board and thereby helping in decision-making. 4) Catering information to the different departments and divisional heads as and when needed and help them in smooth functioning. 5) To furnish computer related works such as billing, sales accounting, pay roll, GIS, DIS. 6) Annual budget through integrated business plan. 7) Conducting monthly variance analysis. 8) Day to day computerization activities of organization.

Management of Information System: MIS manages its function through the implementation of Windows 2000 D2k (Developer 2000) which is used as front end, and  Oracle as backend. In addition its implemented 2 packages. a) Billing package. b) Sales a accounting and payroll. The whole packages are implemented through ERP module i.e. (enterprise Resources Planning). The whole processing is done through the networking, which is pertained only within MIS section. The process is under program for implementing the network throughout the organization.

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METHODOLOGY

Common Communication platforms planned: 1)

ADVERTISING

Print and broadcast advertisements are already being aired on the television screens including all the major channels. 2)

SALES PROMOTIONS

Various interesting premium gifts or still in the processing with discussions between the major dealers and the Company officials. 3)

TRADE SHOWS

The team also conducted various road shows Bangalore hot spots

in and around

where it would attract lot of the target

audience. 4)

PERSONNEL SELLING

Under the segment of the integrated marketing communication sales meeting were arranged with various auto consultants and two wheeler mechanics. A well understood pictures about the features of the vehicles were told to them. So that they can tell to their customers.

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Steps Formulated In Developing Effective Communication By The Company : STEP 1. IDENTIFY TARGET AUDIENCE

The target customers were divided basically on the basis of age, sex and life style. Here the target customers does not mean only the end users.. But also the people who are actively involved in the purchase decision making process. 1)

TEENAGERS .

This group consists of the young gogetters with the age group between 18 And 22 . This group was primarily targeted because they are the people in their helms at their college, Kinetic vehicles doesn¶t only support their pockets but also their life styles. 2)

LADIES

:

HOUSE WIVES / WORKING

This group was chosen because Kinetic vehicles exactly fit in the category of a light weight super pickup vehicle which can be very easily handled. This also has the advantage of large storage spacer below the seat and a large leg space to suit their form of dressing. 3)

PARENTS/FAMILY

This group was chosen because the parents are the main factors who play a big roll in the ultimate decision making to buy any product in a family.

Therefore if they are convinced then it would be a good sale

through in terms of generation of a good number of sale enquiries.

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STEP 2 : DETERMINE OBJECTIVE

The various important objectives to be achieved are discussed here and the work schedule is planned accordingly with main objective. Taking the product¶s Awareness level to the maximum possible extent coupled with sale if possible. STEP 3 : DESIGN MESSAGE

This is a very interesting stage. Here is what you decide, how do you tell the message or how you would communicate with audience. The message was formulated in accordance with the Kinetic¶s image as of the best quality for a best buyer . The message basically had to identify the

vehicle¶s friendly look affordable price and the mileage.

STEP 4 :

SELECT CHANNELS

Selecting the channel was a difficult task because of the diversity of options for better creation, the channels to be used were divided into broadcasting media (TV and radio) and print Media which consists of News papers, Magazines, bill boards, direct mail etc., There were advertisements going on in the TV channels along with certain ads in leading news papers and magazines.

STEP 5 : ESTABLISH BUDGET

The total amount of money that will be spent on the promotional mix will depend on the promotional strategies that have been formulated. The amount allotted to each event will depend on the relative importance due to factors like the consumer characteristics of different target audience. Here an Objective task approach model of allocating budget shall be used.

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STEP 6 : TO DECIDE ON MEDIA MIX

A healthy mix of ads on TV, news papers, Magazines, personal interaction with customers, brief ups for the interested inside

the

showroom and many more such things had been done.

STEP 7

:

MEASURE RESULTS

The results were analysed in accordance with the number of enquiry calls generated at the dealers. There would be a distinction between the enquiry calls as hot calls and cold calls.

Hot calls were

those calls made by the customers which can be turned towards a probable sale.

PROMOTIONAL ACTIVITIES CARRIED OUT :

1)

BRAND VISIBIL ITY PROMOS

This part of the work which is the main thing had to be executed very properly with at most precision. Here what we actually tried to do was, we wanted people/customers to know about Kinetic vehicles. It was all sort of giving some prior information about the products. This created a little degree of pre-promo curiosity among the customers. Here we had two plans. A)

PASTING OF POSTERS/STIC KERS AT STRATEGIC LOCATIONS

:

We had selected few hangouts of the young people where they would spend a sufficient amount of time in the day. The places were like cool joints, dose camps, riche rich stops, coffee bars, internet parlors etc, near all the prominent colleges and residential areas. Here we pasted the posters so that it was necessary for us that our audience had

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to know something about our products. This helped us further when we went there with the vehicles, everybody was curious to know about the Kinetic vehicles. B)

BRINGING NEW KINETIC VEHICLES ON THE ROADS.

This activity was very much of fun, here we were supposed to move around the city in the new models of Kinetic vehicles on the way stop at strategic youth hangout points like local pan stalls, tea shops, coffee bars, ice cream parlors, cyber centers etc, thus creating much more hype about the product. 2)

MEETING THE AUTO CONSULTANTS AND LOCAL MECHANICS

This activity would be a part of our building the foundation strategy. In this segment of our activity planner we met the local mechanics and local auto consultants (two wheelers) who are in the business of selling second hand/used vehicles, this activity is of high importance¶s because if we try and convince them, then in turn would advocate the same to their clients, thus it would be a true marketing done. There were also meetings done the two wheeler mechanics, this was done because local mechanics influence the purchase decision of a two wheeler, when anybody wants to purchase a new vehicle they will consult the mechanics and ask their view about the vehicle they go in for the purchase only after getting a favorable feed back from the mechanic. This activity was carried out for a period of two-three days covering all the major parts of Bangalore. 3)

IN HOUSE/COLLEGE, CAMPUS ACTIVITIES

In this segment we visited some of the well known colleges in Bangalore,

where we met with the concerned college authorities and

pasted the posters and within the college campus at strategic points like

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canteen, kiosk, sports room, parking zone etc. There was much anxiety about the new Kinetic vehicle models in the students. This helped us in our further activities because the students who form a major part of our target audience had information/awareness about new Kinetic models. 4)

TEST RIDES.

This segment of our promotional plan was the most interesting one among the whole process.

Here we approache d prominent colleges in

our zone and conducted test rides for the young enthusiastic college goers. One of the interesting finding here was that more than the male population it was the female population who were most inquisitive. 5)

EXHIBITS.

In this activity we had a very tough job on our hands. We had to interact with all of the target audience of our promotional campaign. Here we went to all the family visiting places like Big Bazaar, Forum, Garuda Mall, Shopping centers, restaurants and Cinema theaters etc, and exhibited the vehicles we had to answer a lot of questions regarding the vehicle model style, quantity, pick up etc. 6)

MEETING PROSPECTIVE CUSTOMERS IN THEIR WORK PLACES.

Here we went to the work places of our prospective customers and explained them regarding new Kinetic mopeds, its attractive features, and loan schemes available. The ones who were interested to have a test ride were given a ride. We used to get their response regarding newly launched Kinetic vehicles and their chances of buying.

s

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Chapter 4

DATA ANALYSIS AND INTERPRETATION TABLE 4.1: SHOWING THE AGE GROUP OF THE RESPONDENTS

Age

No. Of Respondents

Respondents (in %)

Yrs

34

34 %

25-35 Yrs

38

38 %

35-45 Yrs

17

17

%

45 and above

11

11

%

18-25

ANALYSIS : From the above table it can be concluded that 34% of the customers are between the ages of 18 to 25 yrs where as 38% are between the age of 25 to 35yrs. 19% of the respondents are between the age of 35 to 45 yrs whereas only 11% of the respondents are 45 yrs and above.

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GRAPH 4.1 : SHOWING THE AGE GROUP OF THE RESPONDENTS

Respondents (in %)

11%

34% 17%

18-25 Yrs 25-35 Yrs 35-45 Yrs 45 and above

38%

INFERENCE : The majority of the respondents are between the age of 25-35 years of their age, the reason being this bike is meant for youngsters because of its stylish looks and its easy control.people above the age of 45 generally do not prefer bikes instead they go for travelling in four wheelers.

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TABLE 4.2: SHOWING THE OCCUPATION OF THE OWNERS OF KINETIC ± HONDA

Occupation

No. Of Respondents

Respondents (in %)

Student

48

48 %

Working Professional

20

20 %

Government Officer

23

23 %

Business

9

9%

ANALYSIS : From the above table we analyze that 48% of the respondents who uses Kinetic brand are Students whereas 23% are Government officers. We notice that 20% are working Professionals and only 9% who uses the product are from the business sector.

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GRAPH 4.2 : SHOWING THE OCCUPATION OF THE OWNERS OF KINETIC ± HONDA

Respondents (in %)

9%

Student

23% 48%

Working Professional Government Officer Business

20%

INFERENCE : We infer that most of the students prefer this bike because of its low maintenance cost, good mileage, speed, comfort, as well as its stylish look. Government officers also mostly prefer this product because of its low maintenance cost. Whereas people doing business prefer this product the least because of the snobbish effect and status symbol.

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TABLE 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE OF THE KINETIC - HONDA

Particulars

No. Of Respondents

Yes

76

No

Respondents (in %) 76

%

24

24 %

ANALYSIS : From the above table we analyze that 76% of the respondents are aware of the new Kinetic HONDA launches whereas 24% are not aware.

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GRAPH 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE OF THE KINETIC - HONDA

Respondents (in %)

24%

Yes No

76%

INFERENCE : Majority of the respondents knew about the new launches of the product, because of its heavy advertisements, popularity of the product, word of mouth. People who are not aware about its new launches also exist.

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TABLE 4.4: SHOWING THE RESPONDENTS SATISFACTION AS PER THE REQUIREMENTS FROM A SCOOTER

Particulars

No. Of Respondents

Yes

87

87

%

No

13

13

%

Respondents (in %)

ANALYSIS :From the above table we analyze that 87% of the majority are satisfied with our product. 13% on the contrary are not satisfied.

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GRAPH 4.4: SHOWING THE RESPONDENTS SATISFACTION AS PER THE REQUIREMENTS FROM A SCOOTER

Respondents (in %)

13%

Yes No

87%

INFER ENCE:

The inference was that the majority of the respondents feel that the vehicle does satisfies its expected requirements because of its self start facility as well as sizzling and stylish looks when compared to other scooters.

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TABLE 4.5: SHOWING THE RESPONDENTS SATISFACTION BASED ON THE FEATURES OF KINETIC ± HONDA SCOOTER

Particulars

Satisfied

Not Satisfied

Satisfied ( %)

Not Satisfied(%)

Pick Up

78

22

78

22

Price

89

11

89

11

Easy Drive

86

14

86

14

Aesthetic Looks

79

21

79

21

Mileage

92

8

92

8

ANALYSIS:

From the above table we analyze, as follows for the different specifications: 1. Pick Up: 78% of the respondents are satisfied with the pickup of the vehicle whereas 22% are unsatisfied on the contrary. 2. Price: 89% of the respondents are satisfied with the price of the vehicle whereas 11% are unsatisfied with the price of the vehicle. 3. Easy Drive : 86% of the respondents are satisfied with the easy riding feature of the vehicle whereas 14 % were not satisfied about the same feature. 4. Aesthetic looks: 79% of the respondents are satisfied with the aesthetic looks of the vehicle whereas 21% are not satisfied and expect better looks. 5. Mileage: 92% of the respondents were completely satisfied with the mileage factor of the vehicle whereas 8% were not satisfied with the mileage of the scooter.

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GRAPH 4.5: SHOWING THE RESPONDENTS SATISFACTION BASED ON THE FEATURES OF KINETIC ± HONDA SCOOTER

100 90 80

89

92

86 79

78

70 60 50 40 30

22

20

21 11

14

8

10 0 Pick Up

Price

Satisfied(In %)

Easy Drive

Aesthetic Looks

Mileage

Not Satisfied(In %)

Inference: Majority of the respondents were satisfied with the product because of its pick up, price, easy drive, aesthetic looks, and mileage. The scooty is designed in such a way especially keeping these factors in consideration.

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TABLE 4.6: SHOWING RESPONDENTS SATIFICATION BASED ON THE PROMOTION OF KINETIC ± HONDA SCOOTER

Particulars

No. Of Respondents

Respondents (in %)

Satisfied

81

81

%

Not Satisfied

19

19

%

ANALYSIS : From the above table we analyses that 81% are satisfied with the promotion of the Kinetic Honda Scooter whereas 19% are not satisfied and expect better promotional activities.

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GRAPH 4.6: SHOWING RESPONDENTS PERCEPTION BASED ON THE PRESENT PROMOTION OF KINETIC ± HONDA SCOOTER

Respondents (in %)

19%

Satisfied Not Satisfied

81%

INFERENCE : Majority of the respondents were satisfied with its promotional activities. The reason being regular advertisements on the telivision. Newspapers, magazines, activities taken up by various showrooms of the product to increase the sales and awareness of the vehicle.

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TABLE 4.7: SHOWING THE OTHER BRANDS OF SCOOTER RESPONDENTS PREFER

Particulars

No. Of Respondents

Respondents (in %)

Hero Honda

38

38%

Bajaj

24

24%

TVS

20

20%

Others

18

18%

ANALYSIS : We analyze that 38% of the respondents prefer to buy the HERO HONDA, 24% prefer the Bajaj, 20% prefer the TVS and 18% prefer to buy the other brands in the Scooter segment.

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GRAPH 4.7: SHOWING THE OTHER BRANDS OF SCOOTER RESPONDENTS PREFER

Respondents (in %)

18% 38%

Hero Honda Bajaj TVS

20%

Others

24%

INFERENCE : Majority of the respondents prefer to buy hero Honda and Bajaj. These brands are very old and popular among the people of our country of all the age groups. The product of these brands have given a wonderful performance in past which gives them an upper hand as compared to Kinetic.

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TABLE 4.8: SHOWING HOW RESPONDENTS LEARNT THE EXISTANCE OF THE KINETIC HONDA SCOOTER

Particulars

No. Of Respondents

Respondents (in %)

Advertisement

23

23%

Family information

26

26%

Friend¶s recommendation

38

38%

Dealer¶s recommendation

13

13%

ANALYSIS : From the above table we analyze that majority of the respondents summing to 38% got to know about the scooter through Friend¶s Recommendation, 26% got to know about the vehicle through Family Information, 23% through advertisements and 13% from the Dealers recommendation.

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GRAPH 4.8: SHOWING HOW RESPONDENTS LEARNT THE EXISTANCE OF THE KINETIC HONDA SCOOTER

Respondents (in %)

13% 23% Advertisement Family information Friends recommendation Dealers recommendation

38% 26%

INFERENCE : Majority of the respondents got to know about kinetic Honda because of friends recommendations. People belonging to a young age group generally get impressed by what their friends are satisfied with. This is known as word of mouth advertisements.

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TABLE 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE

Particulars

No. Of Respondents

Respondents (in %)

Fuel economy

40

40%

Less physical efforts

24

24%

Better looks

16

16%

Low maintenance cost

20

20%

ANALYSIS: From the above table we analyze that the majority of the respondents prefer the Kinetic Honda because of its fuel economy summing up to 40%, the Effortless riding feature is preferred by 24%, 16% prefer this vehicle because of the looks and 20% prefer it because of low maintenance cost.

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GRAPH 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE

Respondents (in %)

20%

40%

Fuel economy Less physical efforts Better looks

16%

Low maintenance cost

24%

INFER ENCE:

Majority of the respondents prefer this product because of its fuel economy. In today¶s world, every individual wants to pay less and acquire more. Kinetic provides a good mileage. Its self start facility helps the rider to put in less physical efforts.

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TABLE 4.10: SHOWING WHAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY THINK OF KINETIC HONDA

Particulars

No. Of Respondents

Respondents (in %)

Economical

36

36%

Durable

24

24%

Smooth Bike

18

18%

Unsafe Bike

10

10%

Do not like the model

12

12%

ANALYSIS:

From the above table we analyze that 36% being the majority of the respondents think the bike is economical comes to their mind first. 24% think it is Durable. 18% think it is a Smooth bike and 12% do not like the model.

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GRAPH 4.10: SHOWING WHAT COMES TO THE MIND OF THE RESPONDENTS WHEN THEY THINK OF KINETIC HONDA

Respondents (in %)

12% Economical 10%

36%

Durable Smooth Bike Unsafe Bike

18%

Do not like the model 24%

INFERENCE : This vehicle is popular among the students as well as the young group because of its economical factors. It¶s good for students who generally have a limited budget n youngsters who have just started with their careers and cannot afford to spend much on the travelling.

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GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF KINETIC HONDA

Particulars

No. Of Respondents

Respondents (in %)

Price Factors

24

24%

Mileage

36

36%

Maintenance

18

18%

After sales services

16

16%

Cost of replacement parts

6

6%

ANALYSIS :

From the above table we analyze that the 36% feel the mileage of the vehicle is the most distinct feature. 24% feel it is the Price Factor. 18% feel it is the maintenance facility. 16% feel it is the after sales services of the vehicle which is the most distinct feature of the vehicle.

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GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF KINETIC HONDA

Respondents (in %) 6% 16%

24% Price Factors Mileage Maintenance After sales services

18%

Cost of replacement parts 36%

INFER ENCE: The most distinct feature about the product is its mileage because of its good engine capacity and so people using this product can save their money. Also prices of this product are comparatively low when compared to other big brands. This makes it a distinct feature for the people to buy this product.

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TABLE 4.12: SHOWING THE RESPONDENTS OPINION TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA

Particulars

No. Of Respondents

Respondents (in %)

Excellent

27

27%

Good

44

44%

Average

22

22%

7

7%

Poor

ANALYSIS : From the above table we analyze that the majority of the respondents summing up 44% feel the technology used is good. 27% feel it is excellent. 22% feel average. 7% rate it Poor.

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GRAPH 4.12: SHOWING THE RESPONDENTS OPINION TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA

Respondents (in %) 7% 27% 22%

Excellent Good Average Poor

44%

INFERENCE : Majority of the respondents think that the product is good rather than being excellent for the reason being that it has a kind of scope of improvement when compared to other big brands of scooties in the market.

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TABLE 4.13: SHOWING WHERE THE VEHICLE IS GIVEN FOR SERVICING BY THE CUSOMERS

Particulars

No. of respondents

No. of respondents (%)

Authorised dealers

56

56 %

Authorised service stations

28

28 %

Other mechanics

16

16

%

ANALYSIS :

From the above table we analyze that the majority of the respondents summing up to 56% service their vehicles at the Authorized Dealers. 28% authorized service stations.16 % service their vehicles at other mechanics.

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GRAPH 4.13: SHOWING WHERE THE VEHICLE IS GIVEN FOR SERVICING BY THE CUSOMERS

No. Of respondents (in %)

16% Authorised dealers Authorised service stations 28%

56%

Other mechanics

INFERENCE :

Majority of the respondents give their vehicles for service to the authorized dealers because they service the vehicles using latest technology , and use genuine spare parts for the vehicles. They also charge genuinely and provide good satisfaction to customers.

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TABLE 4.14: SHOWING IF RESPONDENTS WILL RECOMMEND THE VEHICLE TO OTHERS BASED ON IT¶S PERFORMANCE

Particulars

No.of respondents


YES

78

78

NO

22

22

ANALYSIS :

We have analyzed that the majority of the respondents summing up to 78% would recommend the vehicle to the others where as 22 % would not prefer to recommend the vehicle to others.

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GRAPH 4.14: SHOWING IF RESPONDENTS WILL RECOMMEND THE VEHICLE TO OTHERS BASED ON IT¶S PERFORMANCE


22%

YES NO

78%

INFERENCE : Maximum people would like to recommend this product to others. The reason being that this product gives a satisfactory performance overall.

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TABLE 4.15: SHOWING WHAT IS THE EXPECTATIONS OF RESPONDENTS FROM THE SERVICE DEALERS

Particulars

No.of respondents


Fast Delivery Of vehicles

32

32

Good & Prompt service

42

42

Mo bile Service

18

18

Others

8

8

ANALYSIS:

We analyze from the above table that majority of the respondents summing up to 42% Good and Prompt Service. 32% expect fast delivery of vehicles. 18 % expect mobile servicing and just 8 % expect other services.

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GRAPH 4.15: SHOWING WHAT IS THE EXPECTATIONS OF RESPONDENTS FROM THE SERVICE DEALERS

No. Of respondents (in %) 8%

32%

18%

Fast Delivery Of vehicles Good & Prompt service Mobile Service Others

42%

INFERENCE :

Maximum of the respondents expect from the dealer that they should get good and prompt services. Also in today¶s busy life everybody wants a fast delivery of the product. This product is used by Working professionals and students and their life is very fast, so they expect that the problems related to the product gets solved as soon as possible.

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TABLE 4.16: SHOWING THE MODE OF PAYMENT PREFERRED BY RESPONDENTS

Particulars

No.of respondents


Cash/ Cheque

43

43

Finance / Loans

57

57

ANALYSIS:

We analyze from the above table that majority of the respondents prefer taking financial loans whereas 43% prefer Cash or cheque payments.

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TABLE 4.16: SHOWING THE MODE OF PAYMENT PREFERRED BY RESPONDENTS


43% 57%

Cash/ Cheque Finance / Loans

INFERENCE : People generally prefer to pay for the product on a loan basis in order to get tax benefits or not to block their liquid cash in a single product. This product is generally famous among the students so they cannot afford to pay at one shot .

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Chapter 5

SUMMARY OF FINDINGS

1) We infer that most of the students prefer this bike because of its low maintenance cost, good mileage, speed, comfort, as well as its stylish look. Government officers also mostly prefer this product because of its low maintenance cost. Whereas people doing business prefer this product the least because of the snobbish effect and status symbol. 2) We infer that most of the students prefer this bike because of its low maintenance

cost, good mileage, speed, comfort, as well as its stylish look. Government officers also mostly prefer this product because of its low maintenance cost. Whereas people doing business prefer this product the least because of the snobbish effect and status symbol. 3) Majority of the respondents knew about the new launches of the product, because of

its heavy advertisements, popularity of the product, word of mouth. People who are not aware about its new launches also exist. 4) The inference was that the majority of the respondents feel that the vehicle does

satisfies its expected requirements because of its self start facility as well as sizzling and stylish looks when compared to other scooters. 5) Majority of the respondents were satisfied with the product because of its pick up,

price, easy drive, aesthetic looks, mileage. The scooty is designed in such a way especially keeping these factors in consideration.

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6) Majority of the respondents were satisfied with its promotional activities. The reason

being regular advertisements on the television. Newspapers, magazines, activities taken up by various showrooms of the product to increase the sales and awareness of the vehicle.

7) Majority of the respondents prefer to buy hero Honda and Bajaj. These brands are

very old and popular among the people of our country of all the age groups. The product of these brands have given a wonderful performance in past which gives them an upper hand as compared to Kinetic.

8) Majority of the respondents got to know about kinetic Honda because of friends

recommendations. People belonging to a young age group generally get impressed by what their friends are satisfied with. This is known as word of mouth advertisements.

9) Majority of the respondents prefer this product because of its fuel economy. In today¶s world, every individual wants to pay less and acquire more. Kinetic provides a good mileage. Its self start facility helps the rider to put in less physical efforts.

10) This vehicle is popular among the students as well as the young group because of its economical factors. Its good for students who generally have a limited budget n youngsters who have just started with their careers and cannot afford to spend much on the travelling.

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11) The most distinct feature about the product is its mileage because of its good engine capacity and so people using this product can save their money. Also prices of this product are comparatively low when compared to other big brands. This makes it a distinct feature for the people to buy this product.

12) Majority of the respondents think that the product is good rather than being excellent for the reason being that it has a kind of scope of improvement when compared to other big brands of Scooties in the market.

13) Majority of the respondents give their vehicles for service to the authorized dealers because they service the vehicles using latest technology , and use genuine spare parts for the vehicles. They also charge genuinely and provide good satisfaction to customers.

14) Maximum people would like to recommend this product to others . the reason being that this product gives a satisfactory performance overall.

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15) Maximum of the respondents expect from the dealer that they should get good and prompt services. Also in today¶s busy life everybody wants a fast delivery of the product. This product is used by Working professionals and students and their life is very fast, so they expect that the problems related to the product gets solved as soon as possible.

16) People generally prefer to pay for the product on a loan basis in order to get tax benefits or not to block their liquid cash in a single product. This product is generally famous among the students so they cannot afford to pay at one shot.

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SUGGESTIONS

The first thing that should be done by Kinetic is to increase its market share in two wheeler segment by:

1)

Extensive advertising as the brand awareness level of kinetic is low as compared to the competitor.

2)

Kinetic should introduce more fuel efficient vehicles.

3)

Scooterettes

must be made little more trendy by its colours,

aesthetic look, and little bulky in looks, so that customers should think that they are getting more for less money. 4)

Customer relatio nship should increase so that customer¶s should think that company is concerned for its customers which in turn increases brand loyalty.

5)

Aggressive advertisi ng with promotion activities has to be taken so that people should feel the presence.

6)

Sports and some other activities like film fare awards, fashion shows have to be sponsored so that brand awareness can be increased.

7)

Each product should have brand ambassador who has good image, so that people will link him/her with kinetic. Hence increase in sales.

8)

Dealers should be more friendly, should be trained in customer relationship management. Because they are the ones whom the customers meet for all their queries.

9)

Dealers should be contacted regularly, because customers tell their feedback to them. And those feedbacks should be looked into.

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10)

Maintenance cost of the vehicles should be decreased by better design

11)

and development.

Last but no the least, a sooterette should always be promoted

by

Women only. Because, as most of the perspective customers are Women and they feeling comfortable with Women promoters only.

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CONCLUSION

India is the 2nd largest two wheeler manufacturer in the world. The two wheeler industry is highly fragmented in nature. In the last ten years, supply has outstripped demand, as multinationals and domestic players have set up large-scale manufacturing facilities to meet future needs. As a result, there is an absence of pricing power with manufacturers. Competition is expected to increase further, as global majors ar e planning to enter India either through direct investment or imports. This industry is highly capital intensive in nature. Two wheeler segment is

capital

and

technology

intensive.

Costs

involved

in

branding,

distribution network and spare parts availability increase entry barriers. With the Indian market moving towards complying with global standards, capital expenditure will rise to attune to future safety regulations. Kinetic Engineering Engineering being a 35 years old company has a very little market share in every segment of two wheeler. But, it has a comparable market share in scooter and scooterette segment. It has to boost its advertising as the brand awareness level of kinetic is low as compared to the competitor.

Customer relationship should increase so that customer¶s should think that company is concerned for its customers which inturn increases brand MSRCASC

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loyalty. Maintenance cost of the vehicles should be decreased by better design and development. So, aggressive advertising with promotion activities has to be taken by Kinetic Engineering so that people should feel the presence of kinetic in the market.

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BIBLIOGRAPHY Books Referred :

1. Henry Assael

Consumer Behavior

2. Sherlekar & Sherlekar

Principles of Mrkt

3. Steve Condiff & Govani 4. Phillip Kotler

Sales Management Marketing Mangt

Websites :

o

http : //www.kineticindia.com/

o

http : //www.autoindia.com/

o

http : //www. Bike s.com/

o

http : //www.thehindu.com/

o

http : //www.domain-b.com/

o

http : //www.etstrategicmarkets.com/

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ANNEXURES

Name

:

1. Which age group do you belong to?

y

18 to 25 years

y

25 to 35yrs

y

35 to 45 yrs

y

45 and above

2. What is your Occupation?

y

STUDENT

y

GOVERNMENT OFFICER

y

BUSINESS PROFESSIONAL

3. Are you aware of Kinetic Honda?

y

Yes

y

No

4. Are you satisfied with the vehicle?

y

Yes

y

No

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5. Respondents satisfaction level on critical attributes

A. Pick up

Satisfied

Unsatisfied

B. Price

Satisfied

Unsatisfied

C. Easy drive

Satisfied

Unsatisfied

D. Aesthetic looks

Satisfied

Unsatisfied

E. Mileage

Satisfied

Unsatisfied

6. Are you satisfied with the present promotion? y

Satisfied

y

Unsatisfied

7. Which other bike would you have preferred to buy?

y y y y

Yamaha motors T VS motors Bajaj motors Others

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8. How did you get to know about Kinetic Honda ?

y y y y

Advertisement Family information Friend¶s recommendation Dealer¶s recommendation

9. You prefer Kinetic -Honda in comparison to other brands because of : y y y y

Fuel economy Less physical efforts Better looks Low maintenance cost

10. What comes to your mind when you think of Kinetic-Hond? y y y y y y

Economical Durable Smooth Bike Unsafe Bike Do not like the model Outdated style

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11. What is the most distinct feature about Kinetic compared to the other Brands of bikes?

y y y y y

Price Factor Mileage Maintenance After sales services Cost of replacement parts

12. Do you think the technology used by Kinetic-Honda is

y y y y

:

Excellent

Good Average Poor

13. Where do you give your vehicle for service?

y

Authorized Dealers

y

Authorised Service Stations

y

Other Mechanics

14. Taking into account the overall performance of Kinetic ± Honda, would you recommend it others?

y y

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Kinetic Honda Print Version 2

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