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Peter drucker, a leading management thinker has put it in this way. The
aim of marketing is to make selling super flows. The aim is to know and
understand the customer so that the product or service fits and sells it.
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CONSUMER BEHAVIOUR:
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CUSTOMER SATISFACTION
Every company’s first task is “to create customers” towards this end it
strives. But on the other hand, customers face a vast array of products and
brand choices, prices and suppliers. It therefore becomes a major task for
customers to opt for the right seller.
It is believed that customers estimate which offer will deliver the most
value. Customers are value maximizes, within bounds of search costs and
limited knowledge, mobility & income. They form an expectation of value and
act on it. Whichever or not the offer lives up to the value expectation affects
both satisfaction & repurchase probability.
Our premise is that customers will buy from the firm that they see as
offering the highest perceived value (CPV) is the difference between the
prospective customer’s evaluation of all the benefits and all the costs of an
offering and the perceived alternatives. Total customer value is the perceived
monetary value of the bundle of economic, functional, and psychological
benefits customers expect from a given market offering. Total customer cost is
the bundle of costs customers expect to incur in evaluating, obtaining, using,
and disposing of the given market offering.
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Value Chain:
The firm’s task is to examine its costs and performance in each value-
creating activity and to look for ways to improve it. The firm should estimate
its competitor’s cost and performances as benchmarks against which to
compare its own costs and performances. It should go further and study the
“best of class” practices of the world’s best companies. The firm’s success
depends not only on how well each department performs its work, but also on
how well the various departmental activities are coordinated.
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Customer
Delivered
value
Product Monetary
Value Cost
Services Time
Value Cost
Personal Energy
Value Cost
Image Psychic
Value Cost
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Attracting Customers
There are steps a company can take to reduce the defection rate. First,
the company must define and measure its retention rate. For a magazine the
renewal rate is a good measure of retention. Second, the company must
distinguish the causes of customer’s attrition and identify those that can be
managed better.
Third, the company needs to estimate how much profit it loses when it
loses customers. In the case of an individual customer, the lost profits is equal
to the customer’s Lifetime value—that is, the present value of the profit stream
that the company would have realized if the customer had not defected
prematurely.
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Fourth, the company needs to figure out how much it would cost to
reduce the defection rate. As long as the cost is less than the lost profit, the
company should spend the money.
Customer retention:
Most marketing theory and practice centers on the art of attracting new
customers rather than on retaining and cultivating existing ones. The emphasis
traditionally has been on making sales rather than building relationships; on
preselling and selling rather than caring for the customer afterward. A
company would be wise to measure customer satisfaction regularly, because
the key to customer retention is customer satisfaction.
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INTRODUCTION
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wheeler sales, where the motorcycles have gained market share from the
scooter and moped or scooterette segments.
The Hero group of companies in India merged with the Honda Motor
Company of Japan in creating a No.1 mantle in the making of the company
Hero Honda. Hero Honda began operations with the establishment of the
Dharuhera plant in 1985. This fully automated plant is equipped with state-of-
the-art machinery, in-house R&D set up, and today it produces a bike every 30
seconds. To meet the growing demand, Hero Honda opened another unit at
Gurgaon, using FMS technology. It is rated as one of the most modern
motorcycle manufacturing plants in the world. The plant produces 1,800 bikes
everyday.
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Hero Honda, the world’s number .1 bikes have started in early 80’s. The
brand image, quality maintenance, mileage and the style of the vehicle
attracted a large number of customers and thus made it as the No.1 bike.
The two-wheeler industry has been expanding rapidly. Gone are the
days when possessing a two-wheeler was seen as a luxury. Now days, it is
viewed as a mere necessity.
Prior, sale of two-wheelers was mainly confined to urban areas but lately
in rural areas the bicycles are being replaced by power driven two-wheelers
such as scooters, motorcycles.
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Not only this, this industry has also customers ranging from all
demographic segments. It has been common sights that even school going
children are driving two-wheelers. The women customers are also increasing
due to increase in women literacy and employment.
Therefore, keeping the above stated objective in mind, this study was
conducted to ascertain the customer’s satisfaction towards Hero Honda two-
wheelers in Hero Honda Motors Ltd. In view of this, a detailed study of
customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.
OBJECTIVES
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Primary Data:
Secondary Data:
LIMITATIONS
1. The areas which were selected were limited only to Hyderabad i.e., the
5. Even though utmost care has been taken in conducting the survey, the
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INDUSTRY PROFILE
The Indian two-wheeler contributes the largest volume amongst all the
segments in automobile industry. Though the segment can be broadly
categorized into 3 sub-segments viz. scooters, motorcycles and mopeds; some
categories introduced in the market are a combination of two or more segments
e.g. scooterettes and step-thru. The market primarily comprises five players in
the two-wheelers segment with the most of the companies having foreign
collaboration with well-known Japanese firms earlier. But most of the
companies are now planning 100% subsidiaries in India.
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LML, which offers better style and technology to the Indian customers.
However, dominance of this category has been declining because of shift in the
customer preferences.
Major part of the growth in the two-wheeler industry has come from
motorcycle especially, the Indo-Japanese 100cc motorcycles, which are
considered fuel efficient, reliable and suited for rough roads.
With sales of over three million vehicles, India is the second largest two-
wheeler market in the world. Vehicle has become a necessity for day-to-day
busy life, with the accelerated industrial and business activity in a liberalized
environment. However, given the limited purchasing power and to high cost of
cars, majority of the middle class vehicle users prefer two wheelers.
With sales of over million vehicles, India is the second largest two-
wheelers market in the world. China is the market leader with around 51
percent of the Asia Market, India, Thailand; Indonesia & Taiwan are the other
key markets for two-wheelers with market share of 19 percent, 10 percent, 9
percent and 5 percent respectively.
In the last four to five years, the two-wheeler market has witnessed a
market shift towards motorcycles at the expense of scooters. In the rural areas,
consumers have come to prefer sturdier bikes to withstand the bad road
conditions. In the process the share of motorcycle segment has grown from
48% to 58%, the share of scooters declined drastically from 33% to 25%, while
that of mopeds declined by 2% from 19% to 17% during the year 2000-01.
The Euro emission norms effective from April 2000 led to the existing players
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Competition has intensified over the last couple of years altering the
dynamics in the motorcycle segment with various companies planning to cash
in on this spurt in demand by calling off their JVs like Suzuki Motors planning
to break off with TVS. Recently, Honda Corporation of Japan announced its
intentions to set up a 100% subsidiary to manufacture scooters and
motorcycles. Other players in the two-wheeler industry include Bajaj Auto
Ltd., Kinetic Motor Co.Ltd. LML and Escorts Yamaha. Low interest regime
has helped in reducing cost of loans, which will help in boosting sales of 2-
wheelers, since 80% of the two-wheelers are credit –stimulated.
Another highlights are that the motorcycle sales have surpassed the
scooter sales for the first time in 1998-99. Until then, motorcycle sales were
always trailing behind.
The net result is that motorcycles now account for 41 percent of the two-
wheeler market, while scooters account for 36 percent. Mopeds have been able
to hold their own at about 21 percent.
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GROWTH MOTORCYCLES
It is therefore not surprising that every major player is trying to get into
the Motorcycle market to have a piece of the cake.
The scooter manufactures have to watch this phenomenon and bring our
many new product variants in the right price slots to sustain their shares in the
market. The moped market has been steady with an average growth of 3
percent. It is dominated by TVS which holds 48 percent market share followed
by Kinetic and Majestic Auto at 23 percent and 18 percent respectively.
In each segment, there is a wide gap between the first two contenders,
which makes their products positioning and marketing strategies most
interesting. The two wheelers market seems to be maturing. There are the usual
their conventional segment of scooters, mopeds and motorcycles. Two new
segments are being created.
NEW SEGMENTS
A Step is through segment like Kinetic K4-100, Honda Street, Bajaj M-
80, which is quite close to the motorcycle segment. The other segment is
scooterettes or mini scooters in which vehicles such as Kinetic SX/Style, TVS
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were up by 18 percent and that of mopeds by 8 percent over the same period
last year.
The current year therefore promises to be a testing time for the two-
wheeler industry. Industry pundits feel that an overall growth rater of 5 percent
should be possible as against 9 percent projected earlier. The sales volume
therefore is expected to be around 3.8 million in 2000-2001.
DRAMATIC CHANGES:
The coming years will see increasing competition due to the parity in
products and price. The only differentiators will be technology, quality,
product range and service. Imaginative marketing will emphasize relationship
building, customer satisfaction and relationship. All is exploring new
techniques such as direct marketing and institutional sales. Some of them are
taking the vehicle actually to the customers doorstep. Now the customer is the
king.
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Government of India towards the passenger car industry, rising demand for
personal transport, inefficiency in the public transportation system etc.,
In 1948, Bajaj Auto began trading in imported Vespa scooters and three
wheelers. Finally, in 1980, it setup a shop to manufacture them in technical
collaboration with Piaggio of Italy. The agreement expired in 1971.
In the initial stages, API it was later overtaken by Bajaj Auto dominating
the scooter segment. Although various Government and Private enterprises
entered the fray for scooters, the only new player that has lasted until today is
LML.
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The first Japanese motorcycles were introduced in the early eighties. TYS
Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine
motorcycles respectively. These two players initially started with assembly of
CKD kits, and later on progressed to indigenous manufacturing. In the 90’s the
major growth for motorcycle segment was brought in by Japanese motorcycles,
which grew at a rate Of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50’s, 60’s and70’s when the
government prohibited new entries and strictly controlled capacity expansion.
The industry saw a sudden growth in the 80’s. The industry witnessed a steady
growth of 14% leading to a peak volume of 1.9mm vehicles in 1990.
The reasons for recession in the sector were the incessant rise in fuel
price, high input costs and reduced purchasing power due to significant rise in
general price level and credit crunch in consumer financing. Factors as if
increased production in 1992, due to new entrants coupled with the recession
in the industry resulted in either company reporting losses or fail in profits.
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India is one of the very few countries manufacturing three wheelers in the
world. It is the world’s largest manufacturer and seller of three wheelers. Bajaj
Auto commands a monopoly in the domestic market with a market share of
above 80%; Bajaj Tempo, Greaves Ltd and Scooters in India share the rest.
PENETRATION OF TWO-WHEELERS:
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COMPANY PROFILE
FILL IT. SHUT IT. FORGET IT
When Hero Cycles and Honda Motor Company of Japan inked their
joint venture in India in April 1984, few could have imagined that the two
would go on to create history and become the subject of a case study at
business schools, internationally.
But that's the Hero Honda saga for you. In a little over two decades, the
world's largest manufacturer of bicycles and the global leader in motorcycles
have created not only the world's single largest motorcycle company but also
the most endearing and successful joint venture for Honda Motor Company
worldwide. The company has sold over 15 million motorcycles and has
consistently grown at double digits since its inception and today, every second
motorcycle sold in the country is a Hero Honda.
In this period, Hero Honda has set up over 2400 customer touch points,
comprising a mix of dealers, service centres and stockists across rural and
urban India. Today, Hero Honda is an amalgam of winning networks and
relationships with internal and external stakeholders, including Investors,
Dealers, Vendors and Employees. These relationships have helped the
company hold on to the mantle of World No.1 for years in succession.
What makes Hero Honda well, Hero Honda, is synergy. The two
partners, leaders in their respective domains, have been able to consistently
draw on each other's strengths. The Hero Group's deep domain knowledge of
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the Indian market and its supplier network has meshed with Honda's mastery
over four-stroke engine technology to create modern and fuel-efficient
machines at affordable prices for India 's 250-300 million strong middle class.
Progressively through the 1980s, the 1990s and now in the 2000s, Hero
Honda has relied on 3 R's-- Reach, Research and Reliability as its basic
building blocks. Using feedback from the market, a fully-equipped R&D center
has consistently created best practices in designing, testing and harmonization,
besides placing strong emphasis on road safety and ride quality. This emphasis
has helped Hero Honda build products that are ahead of their time.
In the 1980s, for example, Hero Honda became the first company in
India to prove that it was possible to drive a vehicle without polluting the
roads. The company introduced new generation motorcycles that set industry
benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it -
Forget it' campaign captured the imagination of commuters across India , and
Hero Honda sold millions of bikes purely on the commitment of increased
mileage.
Hero Honda was also one of India 's first automotive companies to get
close to the customer. Over the years, feedback has flowed back and forth
seamlessly through a unique CRM program - the Hero Honda Passport
Program which now has over 2.5 million members on its roster. The program
has not only helped Hero Honda understand its customers and deliver value at
different price points, but has also created a loyal community of brand
ambassadors.
The best is yet to come. Hero Honda is powering its way through a
market that is still to unleash its true potential, as barely two per cent of the
population has been penetrated so far!
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It isn't surprising that the company is in no mood to take its hand off the
throttle. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors
succinctly puts it, "We pioneered India's motorcycle industry, and it's our
responsibility now to take the industry to the next level. We'll do all it
takes to reach there.''
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In a scenario where the customer had a few choices, our vision was to
offer the highest quality at a reasonable price, to meet our customer’s
expectations, and to exceed them.
Brijmohan Lall
Chairman
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Don't dream if you can't fulfill your dreams,'' Brijmohan Lall Munjal is
often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group
is your classic first generation entrepreneur. He is a man who started small,
dreamt big and used a combination of grit and perseverance to create one of the
country's largest corporate groups and the World's No.1 Two Wheeler
Company.
Instinctive from a young age, Brijmohan Lall made a rather unusual start
in life. Around the time when the freedom movement in India was taking shape
in the late 1920s, he walked into a newly opened Gurukul (Indian heritage
school) near his home in Kamalia (now in Pakistan ). He was only six years old
then.
Building Relationships
When Brijmohan and his brothers started out, there was no concept of
organized dealer networks. Companies just produced, and most dealers
functioned like traders. Brijmohan changed the rules of the business by trusting
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his gut instincts; introducing business norms that were ahead of their time, and
by investing in strategic relationships. Brijmohan built a series of bonds and
networks with hundreds of family members, vendors, dealers and employees.
Much like the Japanese keiretsu system, these networks are now the glue that
holds the Hero Group together.
Besides bonding with his vendors and dealers, Brijmohan has been
personally responsible for kindling a spirit of entrepreneurship amongst his
employees, and today, 40 of his former employees are successful
entrepreneurs.
Staying Ahead
Time and again, Brijmohan managed to steal a march over his industry
peers. For example, when Honda Motors of Japan was looking for a
collaborator in the 1980s, the Hero Group was not high up the pecking order
initially as there were other more eligible and established suitors.
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Yet it didn't take long for the astute Japanese to realize that the Hero Group
and Honda had much more in common than earlier perceived; there a sharp
focus on financial and raw material management, and employee turnover was
low. Honda officials were also amazed to find that the Munjals were already
practicing "Just-in-time-inventory" at the time (JIT). It turned out that
Brijmohan Lall's aspiration to provide cheap transportation to India 's poor by
default ensured lean and cost-effective operations. This in turn increased
vendor efficiency and led to near-zero inventories.
A Corporate Citizen
There is a special place in his heart for Ludhiana , the city where he took
roots. Today, Ludhiana is a modern, bustling city, but Brijmohan has played no
mean role in its evolution. Several schools and educational institutions in
Ludhiana owe their existence to the Munjal family.
In and around Dharuhera, near the first Hero Honda plant, Brijmohan
and his family have left their stamp of philanthropy. The Raman Kant Munjal
Foundation - which Brijmohan set up in memory of his eldest son, today runs a
higher secondary school and a very modern and well-equipped 100-bed
hospital at Dharuhera. The group has also adopted numerous villages and
provides education, vocational training, drinking water, roads, streetlights and
sewerage.
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BOARD OF DIRECTORS
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CODE OF CONDUCT
1. INTRODUCTION
This Code of Conduct has been adopted by the Board of Directors of Hero
Honda Motors Limited for its members and the Senior executives one level
below, the Directors, including all functional heads (hereinafter referred to as
"Specified employee").
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There are certain clauses of the Code, which are meant for Directors only
such as attending meetings of the Board and Committee thereof. The Specified
employees need to ignore such clauses.
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ii) his or her ability to perform his or her duties and responsibilities
objectively and effectively.
• They should make a full disclosure to the entire Board of any transaction
or relationship that such a Director and Specified employee reasonably
expects could give rise to an actual conflict of interest with the Company
and seek the Board's authorization to pursue such transactions or
relationships.
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V. FAIR DEALING
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Director and Specified employees should observe all applicable laws and
regulations including the Company policies and Codes as applicable to them
with respect to the purchase and sale of the Company's securities.
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XI. NON-COMPLIANCE
XII. EMPLOYEES
The Director and Specified employee should respect each and every
employee of the Company, treat each of them in a fair and equitable manner;
respect their privacy and not to share/disclose their personal information
without their prior consent; maintain non-discriminatory approach and refrain
from harassing employees, making sexual advancements, coercion, threat by
virtue of his/her position with the Company.
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XIII. CUSTOMERS
XIV. SHAREHOLDERS
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The Raman Munjal Vidya Mandir began with three classes (up to
class II) and 55 students from nearby areas. It has now grown into a modern
Senior Secondary, CBSE affiliated co-educational school with over 1200
students and 61 teachers. The school has a spacious playground, an ultra-
modern laboratory, a well-equipped audio visual room, an activity room, a
well-stocked library and a computer centre.
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In order to help local rural people, especially women, Hero Honda has
set up a Vocational Training Centre. So far 26 batches comprising of nearly
625 women have been trained in tailoring, embroidery and knitting. The
Company has helped women trained at this center to set up a production unit to
stitch uniforms for Hero Honda employees. Interestingly, most of the women
are now self-employed.
Marriages are organized from time to time, particularly for girls from
backward classes, by the Foundation by providing financial help and other
support to the families.
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KEY POLICIES
At Hero Honda, our goal is not only to sell you a bike, but also to help
you every step of the way in making your world a better place to live in.
Besides its will to provide a high-quality service to all of its customers, Hero
Honda takes a stand as a socially responsible enterprise respectful of its
environment and respectful of the important issues.
"We must do something for the community from whose land we generate
our wealth."
Environment Policy
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Quality Policy
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Safety Policy
SALES PERFORMANCE
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New Delhi, Saturday, July 01, 2006: Hero Honda, the 'World No.1'
two-wheeler company, continues to strengthen its leadership in the Indian two-
wheeler industry, registering impressive growth in sales in the first quarter of
the FY 2006 - 07.
For the quarter ending June 2006, the company achieved cumulative
sales of 8,32,692 units, recording a growth of 21.29% compared to the same
period last year. During the corresponding period last Financial Year, the
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company had recorded sales of 6,86,494 units in the first quarter ending June
2005.
During the month, Hero Honda launched Glamour FI - India's first Fuel
Injection motorcycle. The new technology eliminates the need for a carburetor,
offers the most comfortable drive and the lowest emissions, in addition to a
host of other features, which is now available for the first time to Indian two-
wheeler riders.
New Delhi, Wednesday, March 01, 2006: Hero Honda, the ‘World No. 1’
two-wheeler company for the fifth year in a row, has continued to exhibit a
leader’s performance in the first couple of months in 2006.
During the month of February 2006, the company sold 2,50,695 units, as
compared to 2,23,546 motorcycles sold during February 2005. This translates
into a growth of 12.14 per cent in sales volume.
The cumulative sales of the company for the period April 2005 -
February 2006 also witnessed a notable jump of 3,38,632 units, from 23,89,807
to 27,28,439 units during the corresponding period last year. This reflects a
growth of 14.16 percent.
In January 2006, Hero Honda rolled out its first 100cc gearless scooter
the “Pleasure” across India. The company also launched 22 first ever women-
exclusive scooter showrooms “Just4her” across the country. “Just4her” is a
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In January 2006, Hero Honda was also conferred the honor of the “Bike
Maker of the Year” by NDTV Profit-Bike and Car for the year 2005.
Additionally its 150 cc offering Achiever received the coveted ‘Bike of the
Year’ award. Achiever and Glamour also received the best bike awards for
their respective categories. The most desirable amongst these awards, the
‘NDTV Viewers’ Choice’ award in the bike category was also awarded to
Hero Honda Glamour, truly exemplifying the customers’ enduring trust and
faith in the company.
New Delhi, Wednesday, February 01, 2006: Hero Honda, the ‘World No 1’
two-wheeler company for the fifth consecutive year, has continued to exhibit a
leader’s performance in the first month of the New Year.
The cumulative sales of the company for the period April 2005 - January
2006 has also increased to 24,77,744 motorcycles, a notable jump from
21,66,261 motorcycles during the corresponding period last year. This reflects
a growth of 14.3 %.
In the month of January, Hero Honda rolled out its first scooter, the
100cc “Pleasure” and launched 22 women-exclusive scooter showrooms
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“Just4her” across the country. The cities where “Just4her” showrooms were
launched include Lucknow, Delhi, Ahmedabad, Pune (two showrooms),
Bangalore, Hyderabad, Baroda, Madgaon, Chennai (two showrooms),
Chandigarh, Ludhiana, Jaipur, Nagpur, Jamshedpur, Bhubaneswar, Guwahati,
Coimbatore, Cochin, Indore and Raipur.
The month of January also saw Hero Honda being conferred the honour
of the “Bike Maker of the Year” by NDTV Profit-Bike and Car for the year
2005. Additionally its 150 cc offering Achiever received the coveted ‘Bike of
the Year’ award. Achiever and Glamour also received the best bike awards for
their respective categories. The most desirable amongst these awards, the
‘NDTV Viewers Choice’ award in the bike category was also awarded to Hero
Honda Glamour, truly exemplifying the customers’ enduring trust and faith in
the company.
New Delhi, Monday, January 02, 2006: Hero Honda, the ‘World No.
1’ two-wheeler company, set precedence in the industry by registering an
unparalleled growth throughout the calendar year (CY) 2005. In the year that
logged an impressive growth in the two-wheeler sector, Hero Honda continued
to exceed expectations by selling a staggering 29,16,523 motorcycles during
the calendar year 2005. This converts to a growth of 15.3 per cent over CY ’04
where the company sold 25,28,699 bikes.
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continued faith in us and our products that we have achieved the World No. 1
two-wheeler company year after year."
The calendar year 2005 also saw a slew of new launches in various
segments by the company. One of the biggest milestones was the launch of
‘Pleasure’- the first scooter by Hero Honda. ‘Pleasure’ which is slated to hit the
roads in January is targeted primarily at women. Having established its
leadership in the industry, Hero Honda further consolidated its position by
launching three new motorcycles - ‘Super Splendour’, ‘Glamour’ and
‘Achiever’.
The year also witnessed one of the highest civilian honours, the Padma
Bibhushan being awarded to Mr. Brijmohan Lall, Chairman, Hero Honda
Motors, for his invaluable contribution to trade, industry and philanthropist
activities. Mr. Brijmohan Lall is a first generation entrepreneur who through
sheer hard work and perseverance has made his mark on the global business
environment. During the year Mr. Brijmohan Lall was also honoured with a
Lifetime Achievement Award by the Economic Times.
New Delhi, Thursday, December 01, 2005: Hero Honda, the ‘World
No. 1’ two-wheeler company, is continuing to ride high on its steady sales
performance month after month.
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The month of November also witnessed the 5th Hero Honda Indian
Television Academy Awards, the first and only television awards in the
country.
New Delhi, Monday, October 31, 2005: Hero Honda, the ‘World No.1’
two wheeler manufacturer, has set yet another precedent for the Indian two-
wheeler industry by recording incredible sales in October 2005. The
company’s retail sales crossed the 4-lakh milestone, for the first time ever in
the Indian two-wheeler industry.
Hero Honda’s achievement of the landmark 4 lakh plus retail sales and 3
lakh plus dispatch, within a single month, is an extraordinary feat considering
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With the first festive month ending, Hero Honda’s cumulative sales
(dispatch) for the period April-October 2005 has also registered a significant
growth of 17.87% over the corresponding period in the previous year. The
company’s cumulative sales tally has thereby increased to 17,31,992 units, a
jump from 14,69,394 units in 2004.
New Delhi, Saturday, October 01, 2005: Hero Honda, the ‘World
No.1’ two-wheeler company, for the fourth consecutive year, continued its
upswing during the month of September 2005.
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The cumulative sales of the company for the period April - September
2005 have also shown a growth of 16.84 per cent over the corresponding
period last year. The cumulative sales during the period have increased to
14,29,992 motorcycles from 12,23,919 motorcycles during April-September
2004.
At the end of August 2005, the cumulative sales of the company for the
period April - August 2005 stood at 11,63,921 motorcycles, translating into a
growth of 15.6 per cent. The company had sold 10,06,412 motorcycles during
the corresponding period (April-August 2004) last year.
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Also during the month, Hero Honda completed the phased launch of
‘Glamour’- its new offering in the 125 cc segment. The bike comes powered
with the futuristic and exemplary Quantum Core engine, which has been
perfected after a series of refinements and offers customers an unprecedented
combination of top-class fuel-efficiency and high power. The company has
already sold over 45,000 units of Glamour since its first launch in South India
towards the end of June, demonstrating a tremendous response from customers.
New Delhi, Monday, August 01, 2005: Hero Honda Motors Ltd., the
‘World No.1’ two-wheeler company has come to epitomize consistent
performance. The company has, month on month, managed to stand up against
all odds and maintained its leadership in the increasingly competitive 2-
wheeler segment.
During the month of July 2005, the company sold 2,30,050 bikes, as
against 2,05,654 bikes in the corresponding period last year, thus registering a
sales growth of 12 per cent.
For the period April - July 2005, the cumulative sale of the company
stood at 9,17,617 units, translating into a growth of 12.6% per cent. The
company had sold 8,14,777 units during the corresponding period last year.
The company was able to achieve this impressive growth in the face of
continuing supply constraints of components caused by the volatile labour
situation prevailing in parts of the state of Haryana, where both the
manufacturing plants of the company are located. The adverse situation
impacted other industries in the region as well. Thanks to the initiative taken
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Market demand for Hero Honda products remains buoyant and the
company launched ‘Glamour’- a new entry by the company in the premium
deluxe segment, in Western India during this month. The bike was very
successfully launched in South India in the previous month and has been very
well received by the customers in that region. With this new product in its
portfolio, the company is now looking at consolidating its indisputable
leadership in the market.
New Delhi, Friday, July 01, 2005: Hero Honda, the ‘World No.1’ two-
wheeler company, continues to strengthen its leadership in the Indian two-
wheeler industry, registering impressive growth in sales in the first quarter of
2005 – 06.
For the quarter ending June 2005, the company achieved cumulative
sales of 6,86,494 units, recording a growth of 13 per cent. During the
corresponding period last Financial Year, the company had recorded sales of
6,09,123 units.
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located. The adverse situation has impacted other industries in the region as
well.
However, market demand for Hero Honda products remains buoyant and
production is expected to be back on track to meet this demand. With the
steady progress of monsoon, the outcome also remains positive.
New Delhi, Wednesday, June 01, 2005: Hero Honda, the ‘World No. 1’ two-
wheeler company, sold 2,26,072 units in May 2005.
During the month of May, Hero Honda also announced auditions for
Hero Honda MTV Roadies- 3, a reality show that the company has been
associated with for the last two years. This year the Hero Honda MTV Roadies
journey will begin on June 12th from Jaisalmer to Leh with 13 bikers on Hero
Honda Karizma, the only premium sports bike in India. The show aims at
testing the participants’ endurance and bringing out the real riders in them.
At hero Honda, our goal is not only to sell you a bike, but to also help
you every step of the way in making the right decisions. Assisting you in
making the right judgments on the road, and helping you choose the right
helmet and other riding equipment that can not only help save your skin but
possibly your life!
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Braking Balancing
Cornering
You should conduct pre - ride inspection before riding a two wheeler to
enhance safety and riding comfort.
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Inspect your motorcycle before you start the engine. The items listed
here will only take few minutes, and in the long run they can save time,
expense, and possibly your life. Click to follow the tips as given below:
2. FUEL LEVEL
4. TYRES
5. CLUTCH
6. DRIVE CHAIN
7. THROTTLE
8. LIGHTS AND HORN: Check if the headlight, tail /stop light, turn
properly.
12. BATTERY
PUC CERTIFICATION
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You should get the emission level certified once in every 3 months at
any of the authorised emission checking Centres.
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Hero Honda 4-T plus Genuine Engine Oil provides the following
benefits compared to API SF grade oil:
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Recommendation
For best results from your Hero Honda two-wheeler we recommend use
of Hero Honda 4T Plus Genuine Engine Oil as per the following schedule
In order to check the level of the engine oil, the vehicle should be on
main stand. Check the engine oil level using the dipstick. The engine oil level
should be maintained between the upper and the lower level marks of the
dipstick. In case it is needed, top up the engine oil up to the upper level on the
dipstick.
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BATTERY MAINTENANCE
Check the electrolyte level against the top and bottom markings on the
battery shell. Always top up with distilled water whenever required.
Check for any leakage from battery. It should be clean and free from any
leakages. In case of non use of motorcycle, battery should be kept fully
charged and electrolyte level should be at Top mark.
TYRE PRESSURE
Proper tyre pressure provides maximum riding comfort and tyre life.
Check the tyre pressure of both the front and rear wheels. Ensure
recommended air pressures once a week. Also check for any cuts, embedded
nails or any other sharp objects in the tyre.
Hero Honda engines that give you amazing reliability and fuel-efficiency, year
after year. We have always manufactures 4-stroke engines, ever since inception
in 1985.
It is as part of the Hero Honda family that ‘We Care’ to drive home the
message of Road Safety and a Healthy Environment.
Here are simple steps to a healthy bike, healthy environment, and a healthy
you.
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Social Responsibility
Campaigns:
Economical Honours
Others:
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INTERPRETATION:
From the above table, we can infer that 92% of the respondents were
males and only 8% of respondents were females. From the above findings, we
can analyze that majority of the respondents were males. The reason, for
majority of respondents being males is that most of the Hero Honda vehicles
are suitable only for men.
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92%
100%
90%
80%
70%
60%
50%
40%
30% 8%
20%
10%
0%
Male Female
Graph – 1
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2. Age:
RESPONDENTS AGE
RESPONDENTS
18-29 42 42%
30-49 33 33%
50-59 18 18%
Above 60 7 7%
TOTAL 100 100%
INTERPRETATION:
From the above table, we can infer that 42% of the respondents belong
to age group of 18-29, 33% of the respondents belongs to age group of 30-49,
18% of the respondents belong to age group of 50-59 and 7% of the
respondents belong to age group of above 60 years.
The reason for the majority of respondents belonging to the age group of
18-29 is; the age group 18-29 is an appropriate age, where people have been
using for their enjoyment and easy mobilization.
The reason why only 7% of the respondents belonging to the age group
above 60 have purchased it is, because it is difficult to drive a two-wheeler at
that age, which is impossible at that age.
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RESPONDENTS AGE
42%
45%
40% 33%
35%
30%
25% 18%
20%
15%
7%
10%
5%
0%
18-29 30-49 50-59 Above 60
Graph No: 2
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3. Education
RESPONDENTS EDUCATION
RESPONDENTS
Graduation 48 48%
Post graduation 31 31%
Under graduation 16 16%
Others 5 5%
TOTAL 100 100%
INTERPRETATION:
From the above table, we can infer that 48% of respondents were
graduates, 31% of respondents were postgraduates, 16% of respondents were
under graduates and others count up to 5%.
From the above table, we can analyses that majority of the respondents
were post graduates (31%) and only 16% of the respondents were under
graduates.
The reason for majority of the respondents being graduates may be
firstly, minimum educational qualifications in India being graduation, many
respondents were graduates.
Secondly, most of the respondents were employees.
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QUALIFICATION
48%
50%
45%
40%
31%
35%
30%
25%
16%
20%
15%
10% 5%
5%
0%
Graduation Post graduation Under Others
graduation
Graph No: 3
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4. Occupation:
RESPONDENTS OCCUPATIONS
RESPONDENTS
Student 31 31%
Employed 49 49%
Business 13 13%
Others 7 7%
TOTAL 100 100%
INTERPRETATION:
From the above table, we can infer that 31% of respondents were
students, 49% of the respondents were employed, 13% of the respondents were
business people and 7% of the respondents include others.
From the above table, we can analyze that, majority of the respondents
were employees, and only 13% of the respondents were business people.
The reason for the majority of the respondents being employees is that it
is easy to transport. The remaining categories such as business people, others
occupy least share in purchasing the two-wheelers.
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RESPONDENTS OCCUPATION
49%
50%
45%
40%
31%
35%
30%
25%
20% 13%
15% 7%
10%
5%
0%
Student Employed Business Others
Graph No: 4
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RESPONDENTS
Below 50,000 14 14%
50,000 - 1,00,000 47 47%
1,00,000 - 1,500,000 26 26%
Above 1,50,000 13 13%
TOTAL 100 100%
INTERPRETATION:
From the above table we can infer that 14% of the respondents income
was below 50,000 (per annum), 47% of respondents income was between
30,000- 1,00,000 (per annum), 26% of respondents income was between
1,00,000 – 1,50,000 and above occupy a large share in purchase of two-
wheelers and only 13% of respondents income was below 50,000.
The reason for the majority of the respondents earning above
1,00,000 purchase more two-wheelers due to their high disposable income.
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ANNUAL INCOME
47%
50%
45%
40%
35%
26%
30%
25%
20% 14%
13%
15%
10%
5%
0%
Below 50,000 50,000 - 1,00,000 1,00,000 - 1,500,000 Above 1,50,000
Graph No: 5
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INTERPRETATION:
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MODELS
30% 28%
25%
20%
10% 8%
4%
5%
0%
Splender Passion CD 100 CD 100ss Ambition CD – Dawn CBZ Street
Graph No: 6
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INTERPRETATION:
The response of the question “since how long they were using the
particular two-wheelers” shows that 36% of respondents were using since two
years 32% of respondents were using since one year, 19% of the customers
were using since five years and the remaining respondents (13%) were using
them from five years.
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DURATION OF USING
40% 36%
32%
35%
30%
25% 19%
20%
13%
15%
10%
5%
0%
< 1 Year 1 –2 Years 2– 5Years A nd A bove
Graph No: 7
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RESPONDENTS
Paper Advertisement 5 5%
TV Advertisement 25 25%
Bill board and display 5 5%
Friends and relatives 65 65%
TOTAL 100 100%
INTERPRETATION:
The above table shows that 5% of the customers have gained awareness about
their bike through paper advertisement, 25% through T.V advertisement,
5% through Billboards displays and 65% of them gained awareness
through friends and relatives.
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65%
70%
60%
50%
40%
25%
30%
20%
5% 5%
10%
0%
Paper TV Advertisement Bill board and Friends and
Advertisement display relatives
Graph -8
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INTERPRETATION:
From the above table we can infer that 24% of the respondents gave
preference to quality, 20% of respondents gave preference to brand image and
20% of the respondents gave preference to the service networks, 10%, of the
respondents gave to fuel efficiency.
From the above findings, we can analyze that 40% of respondents
were more quality conscious and only 10% respondents gave preference to
price and fuel efficiency.
The reasons are even though people are price conscious to some
extent; the consumers are more quality conscious than price conscious because
they have enough income to buy two-wheeler.
They are ready to spend a little more to get good quality product and
also they felt that goods they purchase should reflect their personal image.
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PREFERENCE
28%
30%
24%
25% 22%
20% 16%
15%
10%
10%
5%
0%
Quality Price Brand Image Fuel efficiency Resale value
Graph No: 9
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INTERPRETATION:
From the above table we can infer that 50% of the Respondents were
influenced by sales executives, 20% of the respondents were influenced by
their family members, 20% of the respondents were influenced by their friends
and only 10% of the respondents were influenced by their relatives, while
purchasing two wheelers.
From the above findings we can analyze that sales executives influenced
50% of respondents, and relatives influenced only 10% of respondents.
The reason for majority of the respondents being, mostly influenced by
sales executives while purchasing was firstly, sales executives give more
technical description about the product and attract customers to purchase two
wheelers by using their effective communication skills.
The reason why only 10% of respondents were influenced by relatives
is that they may not possess more knowledge about the products like two
wheelers.
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FACTORS
50%
50%
45%
40%
35%
30%
20% 20%
25%
20%
10%
15%
10%
5%
0%
Sales Executives Family Members Friends Relatives
Graph No: 10
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INTERPRETATION:
The response to the question “Are you satisfied with the vehicle” reveals
that as high as 95% of them were satisfied and 22% of them dissatisfied.
The people were asked as to why they were dissatisfied with their Hero
Honda two-wheeler. They responded that in splendor there is a problem with
weak battery, and cbz’s look is very good but the mileage is very low, each and
every model is having some problem and some servicing centers also
disappointed them. But 95% of the respondents are very much satisfied with
their two-wheeler.
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95%
100%
90%
80%
70%
60%
50%
40%
30%
5%
20%
10%
0%
Yes No
Graph No: 11
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INTERPRETATION:
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OPINION ON SERVICE
46%
50%
40%
45%
40%
35%
30%
25%
20%
12%
15%
10%
2%
5%
0%
Excellent Good Average Poor
Graph No: 12
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13. How would you rate the cleanliness and appearance of the workshop?
INTERPRETATION
From the above table we can infer that 2% of the respondents rate the
cleanliness and appearance of the workshop as Excellent, 87% of the
respondents rate it as Good, 8% of them rate it as fair and the remaining 3%
rate it as poor.
This shows that a majority of the customers were happy with the
cleanliness and appearance of the workshop
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87%
90%
80%
70%
60%
50%
40%
30%
20% 8%
3%
2%
10%
0%
Excellent Good Fair Poor
Graph No: 13
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14. What is your opinion on the after sales service and replacement of
spare parts offered by Hero Honda Motors Ltd?
INTERPRETATION
The table reveals that 87% of the customers were satisfied with the after
sales service and replacement of spare parts offered by Hero Honda Motors Ltd
the remaining were dissatisfied.
From this we can infer that most of the customers were satisfied with the
services offered by the dealers.
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87%
90%
80%
70%
60%
50%
40%
30% 13%
20%
10%
0%
With intimation Without intimation
Graph – 15
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INTERPRETATION:
When questioned about the attitude of the frontline staff, 29% of
the respondents rated it as formal, 70% of the respondents rated it as friendly,
and the remaining 1% rated it as informal.
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70%
70%
60%
50%
40%
29%
30%
20%
1%
10%
0%
Formal Friendly Informal
Graph No: 15
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SUMMARY
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The study reveals that majority of the customers age was between 18
years to 29 years.
The target customers were mainly in middle class as well as upper
middle class income group.
Most of the customers of Hero Honda Two-Wheelers were students and
employees.
Most of the customers were employees followed by students.
Out of total customers 40% of the customers were graduates and only
few customers were under graduates.
Splendor, Passion, CD Dawn, CD 100, CD 100ss, CBZ, Street and
Karizma are the brands mostly preferred by Hero Honda Motors Ltd.
The Hero Honda Two-Wheelers are mainly preferred because of the
look & style fuel efficiency and brand image.
Majority of the customers were self-influenced to purchase Hero Honda
Two-Wheelers.
The main reason to choose Hero Honda Motors Ltd to buy their two-
their two-wheeler.
Some people were not satisfied because spare parts costs are very high
and price of vehicle is also very high.
Majority of customers rated good for service offered by the Hero Honda
Motors Ltd.
Majority of the customers of Hero Honda Motors Ltd stated that the future
of the two-wheeler industry would be good.
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SUGGESTIONS
It is very hard to hold the pulse of a customer in the market.
Customer’s satisfaction is different for different people at different situations;
the following were some of the suggestions given to the Hero Honda Motors Ltd
to improve the sales of Hero Honda Two –Wheelers.
The cost of accessories & spare parts of Hero Honda Two-wheelers should
be reduced.
As a promotional measure, Hero Honda Motors Ltd may go for free service
camps. This will increase the customer’s loyalty.
Cost of the Two-Wheelers is little bit high as compared to others.
The sales have to be motivated by providing better incentives.
Direct contact with potential customer and explaining the strengths and
advantages by using their products will help in increasing the sales of the
company.
As the location of the show room is ideally located with middle class
population, Hero Honda Motors Ltd should try to give more advertisements
in news paper, bill boards in that area to enable easy recall of the people for
Hero Honda Motors Ltd.
It should conduct road shows in colleges.
Hero Honda Motors Ltd. should constantly keep in touch with its customers
and inform them about the latest models/ finance schemes.
It should employ Marketing Executives to go and tap the Industrial belt
employees rather than wait for customers to come to Hero Honda; Hero
Honda should go to prospective customers with the help of integrated market
efforts.
Hero Honda Motors Ltd. should track the movement of spare-parts and stock
spare parts in advance otherwise the fake parts would become popular.
Hero Honda Motors Ltd. should setup sub dealers in remote localities in the
area. Hero Honda should conduct road shows in nearby districts.
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