ROSARY COLLEGE OF COMMERCE & ARTS

Navelim Salcete Goa

A Comprehensive study of competitive analysis of Hero Maestro

Project Report Submitted in partial fullfilment of the requirements for the award of The Bachelor Degree in Business Administration (A THREE YEAR FULL TIME PROGRAM IN MANAGEMENT)

Submitted by Tejas Naik Roll No. R-11-22 BBA 2011-2014

Declaration

I Tejas Tulshidas Naik hereby declare that the present project report entitled project on Shree samarth automotive has been prepared by me during the period from 21st April 2012 to 1 June 2012 under the guidance of Mr. Atul Naik, sales & Marketing Manager, Shree samarth automotive And Ms. Charlotte Fernandes, faculty member, Rosary College of Commerce & Arts, Navelim- Goa I also declare that this project has not been submitted nor shall it be submitted in future to any other university or institution for the award of any other Degree or Diploma.

Place: Rosary College of Commerce & Art (RCCA) Navelim, Goa (India) Date: (Tejas Naik)

Acknowledgement This making of any report calls for contribution and cooperation from many others besides the individual alone. It is the result of meticulous effort put in by many minds that contribute to the final report submission and this work too is not an exception. Thus, one of the best parts of writing this is the opportunity to thank those who have contributed towards it. First and foremost, I would like to take the opportunity to express my sincere gratitude to sales & marketing manager of shree samarth hero private limited for their valued insights, suggestions and continuous support, without which this project would not have reached successful completion .I would like to thank all the respondents who took time out of their busy schedule to have interaction with me. All the above, made considerable contribution to which these few lines can hardly do justice to their patience and generous support. I am also truly grateful to the organization and all those people working at, Shree samarth Hero for having patiently endured me and for spending their valuable time to elucidate and demonstrate to me in detail about the working of the various departments, throughout my placement. Their extreme co-operation and helpfulness have proved as an equal factor of support to me.

Table of content Chapter No. Title

Certificate by the Company Declaration Acknowledgment Executive Summary Chapter 1.0 Introduction 1.1 Introduction to Hero 1.2 Company Profile 1.3 Introduction of the Company 1.4 Departmental overview Chapter 2.0 Research & methodology 2.1 Title 13 9 11

Page No.
ii iii iv vii 8

2.2 Aims and objectives 2.3 Scope 2.4 Research Design 2.5 Sampling 2.6 Methodology 2.7 limitations 2.8 literature review
Chapter 4.0 Conclusion Recommendations Annexure List of references & Bibliography 38 39 40 41

CHAPTER 1
Introduction 1.1 The Hero Motocorp Hero Motocorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero Motocorp Ltd. continues to maintain this position till date. Vision The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero Motocorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena. Mission Hero Motocorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners. Strategy Hero Motocorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. Manufacturing

Hero Motocorp two wheelers are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand. Products Hero Motocorp offers wide range of two wheeler products that includes motorcycle and scooters, and has set the industry standards across all the market segments. Distribution The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero Motocorp's extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the country. Brand The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero Motocorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation. Key Policies A company that believes in maintaining ecological standards along with business standards. "We must do something for the community from whose land we generate our wealth." - Chairman Dr.Brijmohan Lall Munjal..

At Hero Motocorp, our goal isn't limited to business but encompasses the broader spectrum of serving humanity through social initiatives. Hero Motocorp takes a stand

as a socially responsible enterprise respectful of its environment.Hero Motocorp has been strongly devoted not only to environmental conservation programs but also expresses the increasingly inseparable balance between economic concerns, environmental and social issues faced by business. A business must not grow at the expense of mankind but must serve humankind at large. 1.2 Introduction to Company The company was started in the year 1989 by Mr.Srikrishna Thakur. The Poprietor of the company is Mr. Damodar S. Thakur, son of Mr. Srikrishna Thakur. At Shree Samarth Hero they believe that once you become a Shree Samarth Heros customer, you will always be an Shree Samarth Heros customer. That's a promise First Hero Honda showroom was started in Margao, Goa with small outlet of Hero Honda just to start with the sales of vehicles. There was no proper storage space for their vehicles and no service station according to Hero company norms. The showroom had to serve their customers with sales and service at one place and the storage should also be at the same place. In 2001 a new showroom at Verna was inaugurated. It had a large space for storage and service centre and a great showroom to show off all the Hero Motocorp vehicles in style, giving a better view to customers about Hero Motocorp.

1.3 Departmental overview Sales and Marketing Department This Department plays a very vital role in the Company, this department is headed by GM Sales, with sales manager, sales consultants. The main function of this Department is to sell and advertise Hero bikes. Their duties are to attend to walk in customers and attend telephone enquiries and also attend enquiries coming from outdoor activities and respond back to customers with mails or telephone calls. Whenever any potential customers enters the showroom, the sales consultant has to explain to him all the features of the vehicle which the customer is intending to purchase, the consultants are also liable to explain to the customers the required information about loan, taxes. They also do follow up with customer enquiries. calling customers, booking appointments for servicing their vehicle. The sales

consultants in the showroom are assigned with certain monthly target by the Department which has to be attained by them. The sales consultants are considered to be the face of the Company, so Shree Samarth Hero takes deep interest in providing them time for training. Internal training is provided by Shree Samarth Hero to their employees.

Service Department The Service Department is one of the major section of the company; this department is headed by Works Manager, under him service manager and mechanics. Pre-sales servicing is one of the major functions of this Department, where, before the delivery, the bike is brought to the service station and inspected thoroughly. They do follow ups they call customers and remind them about their servicing period and book appointments for them. Post- sales service after the servicing of the bike they call customers and take feedback from them about the servicing done. This is standard procedure as per Hero Motocorp. All the servicing carried out in the showroom and all the other necessary information related to the bike serviced has to be intimated to the Head office in the service department, for the record of the Company.

Human Resource Department Human resource Department is headed by accounts manager as it small company accounts manager only looks after HR department their functions are recruiting they recruit best candidates which are best in their field they ensure people who have relevant skills, qualifications and experience .they conduct interviews put adds on the classifieds if there is any job requirement in the company. Along with the salary, they provide other necessary benefits to its employees such as Insurance, coverage Provident Fund, Bonus, Gratuity etc

Chapter 2 2.1 Title Comprehensive study of competitive analysis on Hero Maestro 2.2 Aims and objectives My aim is to do a competitive study on Hero Maestro and Honda Activa Objectives are to conduct a survey and have a deep understanding why customers go for Honda Activa over my company vehicle that is Hero Maestro. 2.3 Scope To know why customers are going for Honda Activa instead Hero Maestro 2.4 Research Design As the customers base is large for Hero Maestro and Honda Activa I Chose Quantitative Research Design to attain better results through the survey 2.5 Sampling I chose sample size of 150 customers of which 75 were Hero Maestro Customers and 75 were Honda Activa 2.6 Methodology Primary data Studying both the bikes thoroughly Personal observation of the bike, discussion with the Managers and Sales executives and customers Survey undertaken

Secondary data Auto magazines, broachers and bike website

2.7 limitations The views of the people can be biased therefore it doesnt reflect true picture. Due to time limit I could only survey 75 Maestro Customers and 75 Activa Customers Views and the perception of the people changes time to time, hence the result of the project may not be applicable time to time

2.8 literature review

Chapter 3 3.0 Analysis and data findings 3.1 Introduction to Hero Maestro The Maestro is very rich in features to attract riders who are looking for a gear-less, spacious and comfort ride. A wide and well-cushioned seat and a flat and broad footboard can accommodate anyone quite easily and high ground clearance makes it a great bike. But one thing that is guaranteed to be a plus point about Maestro is the extremely clever supply of storage areas. Besides the standard option of an under the seat storage space which is spacious enough to hold a full size helmet along with a couple of other small articles, a front side storage box that can come in very handy in storing a lot of household objects comes as an optional accessory and can be installed on demand. The new Hero Maestro scooter is available in choice of six colors, including blue, green, white, black, silver and red. Engine and performance Hero Maestro has got calm and less noisy 109 cc engine giving out 8.2 PS of power and a torque of 9.1 Nm and has an excellent quality engine. Taking top speed, Hero Maestro can reach 90kmph , it is the real Maestro in city traffics. Comparing it to the other available scooters in the market, it has the best performance than all the braking is very good of the bike. Overall, its very affordable performance packed scooter. It is quicker than the Activa in terms of roll ons and acceleration both. The linear power deliver helps the scooter to make quick overtakes in crowdy traffics. Looks and styling Nice and great styling is what Maestro has. Large headlights increases the looks as well as increases the illumination at the dark nights and side indicators adds to its looks. The body is made up of plastic against the Activa which has a metal body, giving the Maestro a new refreshing looks in the scooter sector. At the side tank section, a chrome plastic emblem of maestro makes it a BIG name. Instrument cluster is simple and descent looking with silver linings for a refreshing style. It comes with an analogue speedometer and digital Kilometre clock and fuel indicator.

Maestro is the first in class and the only scooter having the above mentioned instrument cluster. The maestro has a under seat storage which increases its usability. Ride Quality and handling The ride quality of the Hero Maestro is the best. Its linked suspension (with hydraulic dampers) at the front and mono shock at the rear, gives the scooter a perfect balance and comfort. The Maestro also comes with Honda CBS (Combined Braking System with 130mm drum brakes) so it is safe on the braking side. The ride position and height is well designed for a comfortable ride in city. Price and fuel economy At the price of 53,335 (OTR), At this price, the Maestro offers a complete package in terms of looks, economy and ride quality. Hero makes sure that they stand shoulder to shoulder with their old partners Honda and thus their Maestro gives an excellent fuel economy of 52 kilometres for a litre. 3.2 Comparison of Activa and Maestro Scooter Engine Type Displacement Max Power Max torque Ignition Transmission Suspension Front Back Electricals Battery Headlamp Brakes Front Activa Air cooled 4 stroke OHC 109cc 6kw (8bhp) @7500 rpm 8.74Nm @5500 rpm Self & kick V-Matic Maestro Air cooled 4 stroke OHC 109cc 6kw (8.2bhp) @7500 rpm 9.10 Nm @5500 rpm CDI system Dry, Auto centrifugal clutch with V-Matic

Spring loaded hydraulic Bottom link with Spring type loaded hydraulic type Spring loaded hydraulic Unit swing with Spring type loaded hydraulic type 12v 3Ah, maintenance free 12v 3Ah, maintenance free 35/35w 35/35w Drum, 130mm dia (with Drum, 130mm dia (with

Back

CMS) Drum, 130mm dia

CMS) Drum, 130mm dia (with CMS) 90/100-10 53j 90/100-10 53j 5.3L 155mm 1240mm

Tyre size Front 90/100-10 53j Back 90/100-10 53j Fuel tank capacity Capacity 5.3L Chassis Ground Clearance 153mm Wheelbase 1238mm Tyre Type Q1) Which Model do you have?

Activa Maestro Total

75 75 150

I surveyed 150 people out of which 75 were Honda Activa customers and 75 were Hero Maestro customers. The above graph shows that 50 % were Hero Maestro customers and 50% were Honda Activa customers. Q2) how do you came to know about this motor bike?
Graph 3.1

Graph A

In the above diagram we can see that Out of 75 respondents of Honda Activa users. About 11% of the respondents came to know about the bike from the newspaper ads about 12% came to know from the television advertisements 3% came to know from the auto magazines and large number of people that is about 49% came to know about Honda Activa from their friends and families and 25% came to know from others as in company Road shows, Hoardings, seen on roads etc.

Graph 3.2

Graph 3.3

Graph B In the above diagram we can see that Out 75 responders of Hero Maestro users 15% responders came to know about the bike from the newspaper about 4% responders came to know from magazines. Most number of responders came to know from their friends and family that is about 38% and remaining 24% people came to know from others as in show room visit, seen on roads, hoarding etc

Q3) Are you satisfied with the performance of the bike that you are currently having?

Graph A A

In the above diagram people were asked whether they are satisfied with the performance of Honda Activa. Out of 75 respondents 61% of the respondents said that they are satisfied with the performance of the Honda Activa and remaining 39% said they are not satisfied with performance of Honda Activa Graph B In the above diagram people were asked whether they are satisfied with the performance of Hero Maestro. Out of 75 respondents large number of people that is 71% said that they are satisfied with the performance of Hero Maestro remaining Graph 3.4 Graph 3.5 29% said that they not satisfied with the performance of Hero Maestro

Q4) how is the mileage of the bike?

Graph A In the above diagram people were asked about mileage of Honda Activa large number

of people said that its dissatisfying that is about 40% and 27% were neutral in their decision and about 33% were satisfied with the mileage of hero Activa. Graph B In the above diagram people were asked about mileage of Hero Maestro large number of people said that they are satisfied with the mileage of Hero Maestro that is about 47% out 75 respondents 33% said they are neutral in their decision and while remaining said that not satisfied with mileage of the bike.

Q5) how you find the after sales services of the bike?

Graph A In the above diagram people were asked about the after sales service of Honda Activa. A About 64% of respondents said that they B are satisfied with the service about 22 % said that not satisfied with the service remaining 22% were neutral in their decision. Graph B In the above diagram people were asked about the after sales service of Hero Maestro. About 57 % were satisfied with the after sales service of Hero Maestro
Graph Graph 3.5 27 % were neutral in there about 16 3.4 % said not satisfied with the service about

decision.

Q6). Which factor below influence your buying decision?

Graph A In the above diagram people were asked what influenced their buying decision while buying Honda Activa 16% said price influenced their buying decision 13% said mileage of the bike influenced their buying decision 16 % said performance 7% said resale value 11% said status symbol and remaining 37% said other as in unavailability of other vehicles in the market etc. Graph B In the above diagram people were asked what influenced their buying decision while buying Hero Maestro 13 % said Price influenced their buying decision 16% said mileage 19% said performance 3% said resale value 20% said status symbol and remaining 29 % said others

Q7) how would you rate the following factors of bikes with respect to different companies?

Average score Mileage Price Performance Maintenance Looks Brand image Services

Q8) would you buy a new bike if new bike comes in with better feature?

Graph A 3.3 Findings

Chapter 4

4.1 Recommendations and conclusions Both scooters having same specificaions but
maestro is having some more function like digital fuel meter with service due indicator. Also suspension is good . Maestro takes less time to acheive high seed of 60 km compared with activa. Maestro has good suspension also. i have noted mileage of 45 km in city. a real compition to honda in real mean. Maeastro better than Honda