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 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
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the proving ground for many new ideas from early two-stroke-cycle
designs to supercharged, multivalve engines mounted on aerodynamic,
carbon-fibre reinforced 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 the 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
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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.
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.
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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.
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 5-
cylinder 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 step-
through 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
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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-and-
coil ignition, doing away with the troublesome hot-tube. Bore and stroke
figures of 50mm by 70mm gave a displacement of 138cc. A total loss
lubrication system was employed to drip oil into the crankcase through a
metering valve, which then sloshed around to lubricate and cool
components before dumping it on the ground via a 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 heavy),
passenger cars, utility vehicles (UVs) and tractors. The Indian automobile
sector can be divided into several segments: 2 & 3 wheelers, passenger
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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 like cars).
The industry is highly capital intensive in nature. Though three-wheelers

and tractors have low barriers to entry in terms of technology, other
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.
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DID YOU KNOW
 India is the 2nd largest two wheeler manufacturer in the world
 Second largest tractor manufacturer in the world
 5th largest commercial manufacturer in the world
 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.
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
 high machine tool capabilities
 Extremely capable component industry
 Most of the raw material locally produced
 Low cost manufacturing base
 Highly skilled manpower
 Special capability in supplying large volumes
INDIAN AUTOMOBILE INDUSTRY PERFORMANCE

KEY PLAYERS 402
INVESTMENT US$ 2.3 BILLION
OUTPUT US $ 4 BILLION
EXPORTS US $ 417 MILLION
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EMPLOYMENT 250,000 PERSONS
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 collaboration with Piaggio of Italy in 1960.
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.
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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 time the 'Team TVS' has won on the track or off
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,
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
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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 largest
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.
MARKET SHARE IN AUTOMOBILE SEGMENT – JUNE 2009
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SALES FROM March-April ‘2007-08 TO March-April ‘2008 -09
Chapter 2
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2.0 RESEARCH DESIGN
2.1 TITLE OF THE STUDY

The title of the study is “ A study on the Consumer Perception
towards Kinetic Vehicles in special reference to KINETIC-

HONDA 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.
The objectives for performing the study-
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1) To study the consumer perception Kinetic Honda in Bangalore City.
2) 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
and interpret the ever changing consumer behaviour, so that we can
monitor the study for the purpose of making sound decisions in respect to
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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 customers
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 sales
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
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Due to constrain of time and resources a sample size of 100 current and
potential customers in Bangalore city were selected.
Sample unit size : 100

Sampling Procedure: Convenience RANDOM Sampling.
2.7.2 METHODOLOGY
Process of addressing the Research Problem:
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 FOR DATA
COLLECTION
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Type of Research: Analytical Study
Methods used for Data Collection: Questionnaire
Nature of survey : Customer Feed – Back Survey
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.
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2.8 REFERENCE PERIOD
The study was conducted from 19th February,2010 to 26th March,2010.
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
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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 sincere effort has been made to extract best
possible information.
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.
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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.
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 findings 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
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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.
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.
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 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.
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.
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 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.
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.
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 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.
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.
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 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.
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
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Shri H. K. Firodia, Kinetic Engineering Ltd., have engineered heart-

winning 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.,
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.
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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 amount of
maintenance issues. K4-100 has been acclaimed as "India's most fuel
efficient bike", by auto critics. Kinetics' future plans include 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 4-
stroke technology, its vehicles would boast of a price advantage among
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
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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
 Always maintain the highest ethical standards in all our endeavors, business and
economic activities
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 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
 To encourage the modernization of Indian Industry through the supply of
engineering goods and automotives as well as services of world class excellence
 To maintain technological leadership through continuous efforts to update product
technology and manufacturing methods
 To globalize our operations by developing a mix of international markets and
businesses
 To ensure a satisfactory return on capital employed, to meet the growth needs and
the aspirations of our stakeholders
 To present an active, pleasant and productive working environment.
Kinetic Honda
MSRCASC - 30
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 1998—at point which the
partnership was terminated—and 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
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
MSRCASC - 31
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
KEY MILESTONES IN THE HISTORY OF KINETIC
MSRCASC - 32
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 renamed as Kinetic Fincap Ltd.
1998 History is created as Kinetic acquires major stakes in Kinetic
Honda Motors Ltd.
MSRCASC - 33
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.
MSRCASC - 34
Since then the company has expanded aggressively and 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
MSRCASC - 35
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
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
MSRCASC - 36
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!!
KARDUNGLA PASS - THE 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 !
MSRCASC - 37
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,
three Luna vehicles raced against the Deccan Queen and in a record feat
reaching Dadar 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 need,
preference and pocket.
MOTORCYCLES
 Kinetic King – Double role bike
 Kinetic Aquila – India’s only real cruiser
 Kinetic GF Laser – Premium, sporty motorcycle
 Kinetic GF 170 City – high performance motorcycle
 Kinetic GF 125 – 4valve, stylish motorcycle
 Kinetic Velocity – Perfect urban commuter!
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 Kinetic Challenger – handsome, affordable commuter
 Kinetic Boss 115 – Socho to bada socho!

 Kinetic Boss EX – Best value for money motorcycle
SCOOTERS
 Kinetic Nova 135 – Say AAHO!
 Kinetic Nova EX – 4 stroke Scooter of the Year
 KINETIC HONDA – Revolution of scooters.
 Kinetic Zoom – India’s most loved scooter
 Kinetic Blaze - CATCH ME IF YOU CAN
SCOOTERETTES
 Zing 80 - Perfect scooterette!
 Kinetic Zing – youthmobile
 Zing Rockin’ Series – scooterette with unique features like mobile

chargepoint, and more..
 Kinetic Style – spacious, powerful scooterette
STEPTHROUGH
 K4 80 – India’s most fuel efficient two wheeler
MOPEDS
 V2 Range – Solid moped for load carrying
 Luna Range – simple, economical and efficient!
MSRCASC - 39
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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
MSRCASC - 40
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".
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.
MSRCASC - 41
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.
MSRCASC - 42
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.
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
MSRCASC - 43
shipping companies
- Logistic expertise by a professional in-house team
PROMOTION SUPPORT: Product Promotion Support available

proportionate to volumes.
ORGANISTION STRUCTURE OF
KINETIC ENGINEERING LIMTED
COMPANY
Quality Human Marketing Management Finance

Department Resource Department Information Department
Department System
The Organization has been built upon structured principles and consists
basically of three tier systems.
MSRCASC - 44
TOP LEVEL
MANAGEMENT
MIDDLE LEVEL
MANAGEMENT
LOW LEVEL MANAGEMANT
MSRCASC - 45
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 the

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 new 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
MSRCASC - 46
 Promotion
 Television advertisements
 Newspaper advertisements
 Magazine advertisements
 Internet
 Conducting shows
 Giving / sticking posters
 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
 The assurance is given on the basis of the looks of the product
 The assurance is given on the basis of t he style.
 The assurance is given on the basis of the performance.
 The assurance is given on the basis of the mileage.
 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.
MSRCASC - 47
The service function has the vital in the organization. If this department
doesn't function well, it would lead to dissatisfaction among the
customers and ultimately would lose their image in the market. 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
 free service camps
 conducting emission check
 holding customer meet
 holding dealership meet
 holding service meet
MSRCASC - 48
Organization Chart-Marketing and Service
CMD
JMD
MD
DGM
(SERV)
VP(S & M) DGM
(SERV)
DGMZH
AGM SALES AGM SALES AGM SALES AGM SALES (SERV)
B/W B/W GM B/W B/W
DGM
(MKTG) (SERV)
MGR
(SER)
DGM
RM (SERV)
AGM DGM
SR. SER
(MKTG) (SERV)
ENG
DY. MG.
DGM
(SERV)
SR. ENG
MGR
A. MGR
(MKTG)
GR. OFF TRAINEE

OFF.
(MKTG)
S. OFF
MSRCASC - 49
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

manufactured
 At Ahmednagar Factory - S cooterettes and Mopeds are been

manufactured
 At Pitampur(Indore) Factory – Scooters are been

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.
MSRCASC - 50
After passing through these stages, the finished product comes into being
 Then it goes for testing
 Then the product gets quality check / quality assurance.
 After this, the product is sent to the company godown.
 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 style 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
MSRCASC - 51
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.
The activities carried out by Human Resource department are
 Manpower Planning
 I nd u ct io n of th e Ne w e mp lo ye e s
 P e rfo rma n ce A pp ra isa l
 Organization Development
 Tra in in g a nd De ve lo p men t
 E mp lo ye e Co u n se lin g
 I nd u st ria l Re la t io n s
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 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
MSRCASC - 52
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, national origin,
citizenship, disability, age, sexual orientation, political affiliation or any
other criterion prohibited by law.
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 for
something". This is used in finance in terms such as project appraisal or
financial appraisal where a value is attached to a project. Similarly
MSRCASC - 53
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.
ORGANISATION DEVELOPMENT
Organisation development can be said to be the development of the

organisation through the development of its employees and the
development of the employees through the development 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.
MSRCASC - 54
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.
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 benevolent employer in the eyes of the

employee as well as the society.
MSRCASC - 55
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. Transport facilities.
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 with its employees
is central to the business goal of the organisation and to the health of the
organisation.
MSRCASC - 56
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. Counseling and decision making skills
d. Empathy
Organisation Chart-Human Resource Department
MSRCASC - 57
CMD
JMD
MD
VP(HRM)
GM
(HRM)
AGM
(HRM)
MGR- MGR- MGR- MGR-

Induction Training & MGR Industrial
Organisational
Development (HRM) Relations
Development
OFF.
(HRM)
FINANCE DEPARTMENT
MSRCASC - 58
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:-
 Internal audit
 Books & Budget
 Establishment
 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:-
 Purchase order audit.
 Finance audit
MSRCASC - 59
 Commercial contracts
 Site audit
 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:-
 Projected turnover
 Projected cash flow
 Projected profit & loss account
 Project balance sheet
MSRCASC - 60
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:-
 Basic pay
 DA(dearness allowance)
 HRA(House rent allowance)
 Conveyance allowance
COMMERCIAL SECTION
 Preparation of turnover plans
 Periodical monitoring of the achievements and comparing it

with the set standard
 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.
MSRCASC - 61
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.
Organization Chart- Finance Department
MSRCASC - 62
CMD
JMD
MD
VP
(Finance)
GM
(Finance)
Deputy Pre-audit
Manager Wing
Asst.
Manager
Asst.
Manager
Asst.
Manager
MANAGEMENT INFORMATION SYSTEM DEPARTMENT
MSRCASC - 63
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.
Functions:-
The functions of MIS dept in Kinetic Engineering Limited are as under:-
MSRCASC - 64
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.
METHODOLOGY
Common Communication platforms planned:
MSRCASC - 65
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 in and around
Bangalore hot spots 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.
MSRCASC - 66
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.
MSRCASC - 67
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.
MSRCASC - 68
Here an Objective task approach model of allocating budget shall be

used.
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 VISIBILITY 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/STICKERS AT STRATEGIC LOCATIONS:
MSRCASC - 69
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 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
MSRCASC - 70
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
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 approached 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.
MSRCASC - 71
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.
Chapter 4
DATA ANALYSIS AND INTERPRETATION
TABLE 4.1: SHOWING THE AGE GROUP OF THE RESPONDENTS
Age No. Of Respondents Respondents (in %)
18-25 Yrs 34 34 %
25-35 Yrs 38 38 %
35-45 Yrs 17 17 %
45 and above 11 11 %
MSRCASC - 72
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.
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%
MSRCASC - 73
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.
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%
MSRCASC - 74
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.
GRAPH 4.2 : SHOWING THE OCCUPATION OF THE OWNERS OF

KINETIC – HONDA
Respondents (in %)
9%
Student
23% Working Professional
Government Officer
48%
Business
20%
MSRCASC - 75
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.
Particulars No. Of Respondents Respondents (in %)
Yes 76 76 %
No 24 24 %
TABLE 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE

OF THE KINETIC - HONDA
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.
MSRCASC - 76
GRAPH 4.3: TABLE SHOWING IF THE RESPONDENTS ARE AWARE

OF THE KINETIC - HONDA
Respondents (in %)
24%
Yes
No
76%
MSRCASC - 77
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.
TABLE 4.4: SHOWING THE RESPONDENTS SATISFACTION AS

PER THE REQUIREMENTS FROM A SCOOTER
Yes 87 87 %
No 13 13 %
ANALYSIS:-
From the above table we analyze that 87% of the majority are satisfied with our
product. 13% on the contrary are not satisfied.
MSRCASC - 78
GRAPH 4.4: SHOWING THE RESPONDENTS SATISFACTION AS

PER THE REQUIREMENTS FROM A SCOOTER
Respondents (in %)
13%
Yes
No
87%
INFERENCE:
MSRCASC - 79
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.
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
79 21 79 21
Looks
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.
MSRCASC - 80
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.
GRAPH 4.5: SHOWING THE RESPONDENTS SATISFACTION

BASED ON THE FEATURES OF KINETIC – HONDA SCOOTER
100 92
89 86
90
78 79
80
70
60
50
40
30 22 21
20 14
11 8
10
0
Pick Up Price Easy Drive Aesthetic Looks Mileage
Satisfied(In %) Not Satisfied(In %)
Inference:
MSRCASC - 81
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.
TABLE 4.6: SHOWING RESPONDENTS SATIFICATION BASED ON

THE PROMOTION OF KINETIC – HONDA SCOOTER
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.
MSRCASC - 82
GRAPH 4.6: SHOWING RESPONDENTS PERCEPTION BASED ON

THE PRESENT PROMOTION OF KINETIC – HONDA SCOOTER
Respondents (in %)
19%
Satisfied
Not Satisfied
81%
INFERENCE:
MSRCASC - 83
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.
TABLE 4.7: SHOWING THE OTHER BRANDS OF SCOOTER

RESPONDENTS PREFER
Hero Honda 38 38%
Bajaj 24 24%
TVS 20 20%
Others 18 18%
ANALYSIS:
MSRCASC - 84
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.
GRAPH 4.7: SHOWING THE OTHER BRANDS OF SCOOTER

RESPONDENTS PREFER
Respondents (in %)
18%
Hero Honda
38%
Bajaj
TVS
Others
20%
24%
MSRCASC - 85
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.
TABLE 4.8: SHOWING HOW RESPONDENTS LEARNT THE

EXISTANCE OF THE KINETIC HONDA SCOOTER
Advertisement 23 23%
Family information 26 26%
Friend’s
38 38%
recommendation
Dealer’s
13 13%
recommendation
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
MSRCASC - 86
the vehicle through Family Information, 23% through advertisements and 13% from the
Dealers recommendation.
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:
MSRCASC - 87
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.
TABLE 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA

SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE
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
MSRCASC - 88
preferred by 24%, 16% prefer this vehicle because of the looks and 20% prefer it
because of low maintenance cost.
GRAPH 4.9: SHOWING RESPONDENTS PREFER KINETIC HONDA

SCOOTER IN COMPARISION TO OTHER SCOOTERS BEACUSE
Respondents (in %)
20%
Fuel economy
40% Less physical efforts
Better looks
Low maintenance cost
16%
24%
INFERENCE:
MSRCASC - 89
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.
TABLE 4.10: SHOWING WHAT COMES TO THE MIND OF THE

RESPONDENTS WHEN THEY THINK OF KINETIC HONDA
Economical 36 36%
Durable 24 24%
Smooth Bike 18 18%
Unsafe Bike 10 10%
Do not like the model 12 12%
ANALYSIS:
MSRCASC - 90
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.
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
Do not like the model
18%
24%
INFERENCE:
MSRCASC - 91
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.
GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF

KINETIC HONDA
Price Factors 24 24%
Mileage 36 36%
Maintenance 18 18%
After sales
16 16%
services
Cost of
replacement 6 6%
parts
ANALYSIS:
MSRCASC - 92
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.
GRAPH 4.11: SHOWING THE MOST DISTINCT FEATURE OF

KINETIC HONDA
Respondents (in %)
6%
24%
16%
Price Factors
Mileage
Maintenance
After sales services
Cost of replacement parts
18%
36%
INFERENCE:
MSRCASC - 93
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.
TABLE 4.12: SHOWING THE RESPONDENTS OPINION

TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA
Excellent 27 27%
Good 44 44%
Average 22 22%
Poor 7 7%
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.
MSRCASC - 94
GRAPH 4.12: SHOWING THE RESPONDENTS OPINION

TOWARDS THE TECHNOLOGY USED BY KINETIC HONDA
Respondents (in %)
7%
27%
22% Excellent
Good
Average
Poor
44%
MSRCASC - 95
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.
TABLE 4.13: SHOWING WHERE THE VEHICLE IS GIVEN FOR

SERVICING BY THE CUSOMERS
No. of respondents
Particulars 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.
MSRCASC - 96
GRAPH 4.13: SHOWING WHERE THE VEHICLE IS GIVEN FOR

SERVICING BY THE CUSOMERS
No. Of respondents (in %)
16%
Authorised dealers
Authorised service stations
Other mechanics
56%
28%
INFERENCE:
MSRCASC - 97
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.
TABLE 4.14: SHOWING IF RESPONDENTS WILL

RECOMMEND THE VEHICLE TO OTHERS BASED ON IT’S
PERFORMANCE
No. Of respondents
Particulars No.of respondents
(in %)
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.
MSRCASC - 98
GRAPH 4.14: SHOWING IF RESPONDENTS WILL

RECOMMEND THE VEHICLE TO OTHERS BASED ON IT’S
PERFORMANCE
22%
YES
NO
78%
MSRCASC - 99
INFERENCE:
Maximum people would like to recommend this product to others. The reason being
that this product gives a satisfactory performance overall.
TABLE 4.15: SHOWING WHAT IS THE EXPECTATIONS OF

RESPONDENTS FROM THE SERVICE DEALERS
No. Of respondents (in

%)
Fast Delivery Of vehicles 32 32
Good & Prompt service 42 42
Mobile Service 18 18
Others 8 8
ANALYSIS:
MSRCASC - 100
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.
GRAPH 4.15: SHOWING WHAT IS THE EXPECTATIONS OF

RESPONDENTS FROM THE SERVICE DEALERS

8%
18% 32%
Fast Delivery Of vehicles
Good & Prompt service
Mobile Service
Others
42%
MSRCASC - 101
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.
TABLE 4.16: SHOWING THE MODE OF PAYMENT

PREFERRED BY RESPONDENTS
No. Of respondents
(in %)
Cash/ Cheque 43 43
Finance / Loans 57 57
ANALYSIS:
MSRCASC - 102
We analyze from the above table that majority of the respondents prefer taking financial
loans whereas 43% prefer Cash or cheque payments.
TABLE 4.16: SHOWING THE MODE OF PAYMENT

PREFERRED BY RESPONDENTS
Cash/ Cheque
43% Finance / Loans
57%
MSRCASC - 103
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.
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
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
symbol.
MSRCASC - 104
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.
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.
MSRCASC - 105
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.
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.
MSRCASC - 106
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.
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.
MSRCASC - 107
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.
MSRCASC - 108
4) Customer relationship should increase so that customer’s should

think that company is concerned for its customers which in turn
increases brand loyalty.
5) Aggressive advertising 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.
10) Maintenance cost of the vehicles should be decreased by better

design and development.
11) 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.
MSRCASC - 109
CONCLUSION
MSRCASC - 110
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 are
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 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
loyalty. Maintenance cost of the vehicles should be decreased by better
design and development.
MSRCASC - 111
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.
BIBLIOGRAPHY
MSRCASC - 112
Books Referred:
1. Henry Assael Consumer Behavior

2. Sherlekar & Sherlekar Principles of Mrkt
3. Steve Condiff & Govani Sales Management
4. Phillip Kotler Marketing Mangt
Websites:
o http://www.kineticindia.com/
o http://www.autoindia.com/
o http://www. Bikes.com/
o http://www.thehindu.com/
o http://www.domain-b.com/
o http://www.etstrategicmarkets.com/
MSRCASC - 113
ANNEXURES
Name :
1. Which age group do you belong to?
 18 to 25 years
 25 to 35yrs
 35 to 45 yrs
 45 and above
2. What is your Occupation?
 STUDENT
 GOVERNMENT OFFICER
 BUSINESS PROFESSIONAL
3. Are you aware of Kinetic Honda?
 Yes
 No
4. Are you satisfied with the vehicle?
 Yes
MSRCASC - 114
 No
5. Respondents satisfaction level on critical attributes
A. Pick up
Satisfied Unsatisfied
B. Price
C. Easy drive
D. Aesthetic looks
E. Mileage
6. Are you satisfied with the present promotion?
 Satisfied
 Unsatisfied
7. Which other bike would you have preferred to buy?
 Yamaha motors
 T VS motors
MSRCASC - 115
 Bajaj motors
 Others
8. How did you get to know about Kinetic Honda ?
 Advertisement
 Family information
 Friend’s recommendation
 Dealer’s recommendation
9. You prefer Kinetic -Honda in comparison to other brands because of:
 Fuel economy
 Less physical efforts
 Better looks
 Low maintenance cost
10. What comes to your mind when you think of Kinetic-Hond?
 Economical
 Durable
 Smooth Bike
 Unsafe Bike
 Do not like the model
 Outdated style
MSRCASC - 116
11. What is the most distinct feature about Kinetic compared to the other Brands
of bikes?
 Price Factor
 Mileage
 Maintenance
 After sales services
 Cost of replacement parts
12. Do you think the technology used by Kinetic-Honda is :
 Excellent
 Good
 Average
 Poor
13. Where do you give your vehicle for service?
 Authorized Dealers
 Authorised Service Stations
 Other Mechanics
14. Taking into account the overall performance of Kinetic – Honda, would you
recommend it others?
 YES
MSRCASC - 117
 NO
15. What service do you expect from a Dealer?
 Fast Delivery of vehicle

 Good & Prompt Service
 Mobile service
 Others
16. What mode of payment do you prefer?
 Cash/Cheques
 Finance/Loan
MSRCASC - 118
MSRCASC - 119

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Kinetic Engineering Limited

PART A - AUTOMOBILE HISTORY

The Britannica Encyclopedia describes a motorcycle as a bicycle or

The motors on minibikes, scooters, and mopeds, or motorized

The automobile was the reply to the 19th-century dream of self-propelling

The 1900s saw the conversion of many bicycles, or pedal cycles by

The invention of the first two-wheeler is a much-debated issue. "Who

This two-wheeler was powered by a single-cylinder Otto-cycle engine,

The practice of attaching auxiliary engines to bicycles in western Europe

Most of the development during this earliest of eras concentrated on

The first really successful production two-wheeler though, was the

between cylinder-firing, it used a pair of stout elastic bands, one on each

In 1895, the French firm of DeDion-Buton built an engine that was to

DeDion-Buton used this 1/2 horsepower powerplant in roadgoing trikes,

INDIAN AUTOMOBILE INDUSTRY

cars, commercial vehicles (Heavy CVs/ Medium CVs/Light CVs), utility

Demand is linked to economic growth and rise in income levels. To

The industry is highly capital intensive in nature. Though three-wheelers

Automobile majors increase profitability by selling more units. As number

DID YOU KNOW

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

 Second largest tractor manufacturer in the world

 5th largest commercial manufacturer in the world

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

Automobile industry Contributes 17% of the total indirect taxes collected

 high machine tool capabilities

 Extremely capable component industry

 Most of the raw material locally produced

 Low cost manufacturing base

 Highly skilled manpower

 Special capability in supplying large volumes

INDIAN AUTOMOBILE INDUSTRY PERFORMANCE

EMPLOYMENT 250,000 PERSONS

MAJOR PLAYERS IN TWO WHEELER SEGMENT

Established in 1945, it was incorporated as a trading company. From

It was this affinity in working cultures of Honda Motor Company of Japan

MARKET SHARE IN AUTOMOBILE SEGMENT – JUNE 2009

SALES FROM March-April ‘2007-08 TO March-April ‘2008 -09

2.0 RESEARCH DESIGN

2.1 TITLE OF THE STUDY

towards Kinetic Vehicles in special reference to KINETIC-

2.2 STATEMENT OF THE PROBLEM

The Kinetic Engineering Limited has planned for a massive restructuring

The objectives for performing the study-

1) To study the consumer perception Kinetic Honda in Bangalore City.

2) To study how consumers perceive various aspects of Kinetic

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

2.4 SCOPE OF THE STUDY

The consumer is the focus of the marketing efforts. The modern

the 4 P’s of the marketing mix. It is consumer predisposition whether

2.5 OPERTIONAL DEFINITION OF CONCEPTS

2.6 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research

Sample unit size : 100

Process of addressing the Research Problem:

The outcome of any research is strongly affected by the choice of

2.7.3 TYPE OF RESEARCH AND TOOLS FOR DATA

Type of Research: Analytical Study