STS Automobile

INDUSTRY OVERVIEW
Two-Wheelers
India is the second largest manufacturer and producer of two-wheelers in the
world. It stands next only to Japan and China in terms of the number of twowheelers produced and domestic sales respectively. This distinction was achieved
due to variety of reasons like restrictive policy followed by the Government of
India towards the passenger car industry, rising demand for personal transport,
inefficiency in the public transportation system etc.
The Indian two-wheeler industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country.
Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began
trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a
shop to manufacture them in technical collaboration with Piaggio of Italy.
Although various government and private enterprises entered the fray for scooters,
the only new player that has lasted till today is LML. Under the regulated regime,
foreign companies were not allowed to operate in India. It was a complete sellers
market with the waiting period for getting a scooter from Bajaj Auto being as high
as 12 years.
The motorcycles segment was no different, with only three manufacturers viz
Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa
and the Rajdoot were two-stroke bikes. The motorcycle segment was initially
dominated by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler
market was opened to foreign competition in the mid-80s. Moreover, the then
market leaders -Escorts and Enfield - were caught unaware by the onslaught of the
100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuelefficient low power bikes, demand swelled, resulting in Hero Honda - then the only
1 | Page

STS Automobile
producer of four stroke bikes (100cc category), gaining a top slot. The first
Japanese motorcycles were introduced in the early eighties. TVS 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 90s 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
50s, 60s and 70s when the Government prohibited new entries and strictly
controlled capacity expansion. The industry saw a sudden growth in the 80s. The
industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn
vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric
scooter helped in providing ease of use to the scooter owners. This helped in
inducing youngsters and working women, towards buying scooters, who were
earlier inclined towards moped purchases. In the 90s, this trend was reversed with
the introduction of scooterettes. In line with this, the scooter segment has
consistently lost its part of the market share in the two-wheeler market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted
in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of
0.4mn vehicles. Barring Hero Honda, all the major producers suffered from
recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The
reasons for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant rise in general price level
and credit crunch in consumer financing. Factors like increased production in
1992, due to new entrants coupled with the recession in the industry resulted in
companies either reporting losses or a fall in profits

2 | Page

STS Automobile
INTRODUCTION OF HERO MOTOCORP
Hero MotoCorp formerly Hero Honda is a motorcycle and scooter manufacturer based in
India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda
of Japan. The Company is the largest two wheeler manufacturer in India. The 2006 Forbes
200 Most Respected companies list has Hero Honda Motors ranked at 108.
Hero is the brand name used by the Munjal brothers for their flagship company Hero
Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was
established in 1984 as the Hero Honda Motors Limited at Dharuhera India. Hero MotoCorp
has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar
in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.
The Company entered into a technical-cum-financial collaboration agreement with Honda
Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish
complete technical information and know-how and trade secrets and other relevant data.

Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc
range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be
equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral
and flasher indicators, etc.
Number of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No.
of equity shares issued at par of which 71,99,985 shares reserved for allotment as under:
(i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur Chand
Investments (P) Ltd.

3 | Page

STS Automobile
(ii) 31, 20,000 shares to Honda Motor Co. Ltd., Japan and
(iii) 9, 59,987 shares to friends and association of promoters. Out of the balance 48, 00,000
shares, 2, 40,000 shares were reserved for subscription by the employees of the Company and
96,000 shares by business associates. The remaining 44, 64,000 shares were offered at par for
public subscription during November.

Parent Company

Hero Group

Category

Motorcycles, Scooters

Sector

Two-Wheelers

Tagline/ Slogan

Hum mei hai Hero

Wide product variety, excellent brand equity & high

USP

customer loyalty

STP
Segment

Young boys looking for fast sporty bikes for Indian

4 | Page

STS Automobile
roads
Target Group

Young boys in the age 18-30 middle class

Positioning

Every person has a hero and a winner within ones self

Product Portfolio
1. CBZ
Brands

2. Karizma

3. Passion

4. Pleasure

5. Splendor

6. Impulse

SWOT Analysis
1. Huge brand equity and one of the biggest players in
the two wheelers Indian market
2. Excellent R&D, and wide variety of products in every
segment.
3. Excellent distribution, over 3000 dealerships and
service centres.
4. Good advertising and excellent rebranding from Hero
Strength

Honda to Hero Moto Corp.

1. Absence in the premium bike segment.
2. High imports for its spare parts i.e. over 30% imports.
3. Most of the products have similar features and low on

Weakness

design and innovation.

1. Two-wheeler segment is one of the most growing
industries.
2. Export of bikes is limited i.e. untapped international

Opportunity

markets.

Threats

1. Strong competition from Indian as well as

5 | Page

STS Automobile
international brands
2. Dependence on government policies and rising fuel
prices
3. Better public transport will affect two-wheeler sales
Competition
1. Yamaha
2. Bajaj Auto
3.TVS
4.Suzuki
5. Harley Davidson
6. Royal Enfield
Competitors

7. Ducati

VISION AND MISSION

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 twowheeler 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 two wheelers. Hero MotoCorp Ltd.,
company's new identity, reflects its commitment towards providing world class
6 | Page

STS Automobile
mobility solutions with renewed focus on expanding company's footprint in the
global arena.
MISSION
Hero MotoCorps 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 MotoCorps 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.
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.

7 | Page

STS Automobile
MANUFACTURING
Hero MotoCorp two wheelers are manufactured across 3 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.
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
MotoCorps extensive sales and service network now spans over to 6000 customer
touch points. These comprise a mix of authorized dealerships, service & spare parts
outlets, and dealer-appointed outlets across the country.

HISTORY AND DEVELOPMENT

Hero is the brand name used by the Munjal brothers for their
flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and
Honda Motor Company was established in 1984 as the Hero Honda Automobile
Limited at Dharuhera, India. Munjal family and Honda group both owned 26%
stake in the Company. In 2010, it was reported that Honda planned to sell its
stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were
popular in India for their fuel economy and low cost. A popular advertising
campaign based on the slogan 'Fill it Shut it Forget it' that emphasized the
motorcycle's fuel efficiency helped the company grow at a double-digit pace since
inception. The technology in the bikes of Hero Honda for almost 26 years (1984
2010) has come from the Japanese counterpart Honda.
8 | Page

STS Automobile
Hero MotoCorp has three manufacturing facilities based
at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants
together are capable of churning out 3 million bikes per year. Hero MotoCorp has a
large sales and service network with over 3,000 dealerships and service points
across India. Hero Honda has a customer loyalty program since 2000, called the
Hero Honda Passport Program.
The company has a stated aim of achieving revenues of $10
billion and volumes of 10 million two-wheelers by 201617. This in conjunction
with new countries where they can now market their two-wheelers following the
disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their
revenues from international markets, and they expected to launch sales
in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand
over the coming half decade, the company was going to build their fourth factory
in South India and their fifth factory in Western India. There is no confirmation
where the factories would be built.

9 | Page

STS Automobile

HIGHLIGHTS OF HERO MOTOCORP

1956 -Formation of Hero Cycles in Ludhiana (majestic auto limited)
1983-Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan
Shareholders Agreement signed. 1985- CD 100 launched.
1985- The Company embarked on its 2nd phase of expansion of increasing
its installed capacity from 1, 20,000 to 1, 50,000 vehicles per annum by the
addition of several critical aluminium and steel components.
1990- The Company was planning to launch a new model motor cycle-CD
100 SS suitable to semi-rural conditions.

10 | P a g e

STS Automobile
1994 The Company issued 39, 79,500 bonus shares to the existing
shareholders in the ratio of 1:4. And Splendor launched.
1997 - Hero Motors of the Rs.1, 600 crore Hero group, as part of its
globalisation plan, has set up a plant in Brazil for manufacturing hero winner
scooters.
1998- Motorcycles major Hero Honda is considering entry into scooters in
collaboration with partners, Honda Motors, after the Japanese company
decided to walk out of Kinetic Honda, their scooter venture with the Firodias
of Pune.
- Honda Motors recently pulled out of its joint venture with the Firodias in
which it held a 51 per cent equity stake.

1999 - Leading two-wheelers manufacturer Hero Motors has formed a joint

venture with Briggs Stratton of US to develop and manufacture four-stroke
engines for mopeds and scooters in India, a top company.

2001- Hero Honda Motors Ltd. has become the largest seller of motorcycles
amongst all Honda companies and ventures in the world by selling one
million motorcycles
2002- Japanese automaker Honda Motor for the first time decides to source
motorcycles from its Indian joint venture Hero Honda to sell as 'Honda'
brand name in Vietnam
2003 - Joins hands with Small Industries Service Institute (SISI) to train the
unemployed youth who have finished diplomas
11 | P a g e

STS Automobile
-Initiates a new dealer credit system which will bring down its receivable
levels to around seven days and save the company Rs 100 crore and Karizma
launched.
2005- Two-wheeler major Hero Honda on October 5 announced launch of its
first scooter 'Pleasure'
2010- The joint venture of Herohonda got split

OTHER ACTIVITIES

12 | P a g e

STS Automobile
HOCKEY
Hockey is India's national sport, and Hero is committed to doing its part to
promote and popularize the sport. In 2010, Hero MotoCorp extended its support to
Hockey by sponsoring the 'Hockey World Cup 2010' that was held in India. 2 years
after this, Hero Motocorp was also the sponsor of the 'FIH Road to London 2012'
tournament.
The company is proud to associate with, and will continue to endorse this great
sport in the future.

GOLF
Hero MotoCorp began its association with the prestigious Indian Open Golf
tournament in 2005. The tournament has helped catapult the popularity of golf in
India. Illustrious golfers from around the world participate in this annual event,
which boasts of the largest prize fund sanctioned solely by the Asian Tour.

CRICKET
Our association with cricket goes a long way. Hero MotoCorp has in the past
sponsored major cricket tournaments in association with International Cricket
Council (ICC), including the cricket World Cup and the Champions Trophy. Hero
has also been associated with IPL.

13 | P a g e

STS Automobile
SPORTS ACCESSORIES
Wouldn't you love to play your favorite shots of cricket with the bats that Virender
Sehwag prefers 'Hero' custom cricket bats that Sehwag loves, available in Kashmir
and English Willow, nurtured in India, can now be purchased at select Hero
MotoCorp dealerships and distributors across the country.
Kashmir Willow bats require constant knocking and oiling to strengthen it for use
in a cricket match. Knocking is done to compress the fibres of the willow blade
together which helps the bat bear the impact of the ball. English Willow nurtured in
India is by nature a soft fibrous wood. Its natural moisture and ability to be pressed
in the manufacturing process gives great ball striking qualities.

14 | P a g e

STS Automobile

AWARDS TO HERO MOTOCORP

2013

Green Pioneer Award - 2013

"Business Leader of the Year" Award by Hon'ble President of India, Shri.

Pranab Mukherjee, at the AlMA Managing India Awards 2013 on April 11, 2013
(Conferred on Mr. Pawan Munjal)

"Business Leader of the Year" Award in the Auto (Two Wheelers) category
by Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia,
at the NDTV Business Leadership Awards 2013 (Conferred on Mr. Pawan Munjal)

CFO of the year Award (Conferred on Mr. Ravi Sud)

2012

Business Leader in Automobiles (two-wheelers) at the NDTV Profit

Business Leadership Awards 2012 (Conferred upon Mr. Pawan Munjal)

Best value for Money Bike Maker and Best Advertising in Two Wheelers
Category at the Auto India Best Brand Awards 2012

Digital Advertiser of the year at the Indian Digital Media Awards (IDMA)
2012

15 | P a g e

STS Automobile

Three awards (Launch Event of the year, Rural Engagement Progamme and
Live Patron Award for Marketing Excellence) at the WOW Awards organised by
EventFAQs

Advertiser of the year 2012 by Indian Digital Media Awards 2012

Innovation in Loyalty Marketing Award (Initiative: Hero GoodLife Utsav)

by Colloquy Loyalty Awards

TPM Excellence Award 2012 by JIPM (Japan Institute of Plant

Maintenance)

Best Learning & Development Award

Asias Third Best Employer Brand Award

ET Now Talent & HR Leadership Award

8th Recruiting and Staffing Best-in-Class Award

Global HR Excellence Award

India Human Capital Award by Human Capital

Business Technology Excellence Awards 2012

Business Technology Innovation Awards 2012

Top Green IT Enterprise Award

IT Transformers Award

Quality Circle Excellence Award at National QC Convention - 2012

16 | P a g e

STS Automobile

INTRODUCTION OF STS AUTOMOBILES

Mr. Dhananjay Sankhe (CEO STS AUTOMOBILES)

At STS Hero, our main focus is to meet and exceed the needs of our customers.
Our meticulous attention to detail and understanding in after sales services has
helped us set new standards. It has also enabled us to become one of the leading
Hero MotoCorp dealers in India
We are committed to ensuring the very best in sales and service at all times. Our
well-trained team of specialists ensures a comprehensive and unrivalled service
experience every time.

17 | P a g e

STS Automobile
As always, we are more than happy to answer all your queries on our product and
service offerings, so do get in
The STS Hero is well established in Boisar, it was set up in 2012, under
companies act 1956. Their main aim is to satisfy customers needs by providing
service in two-wheelers. The name of the company in itself suggests a different in
it. There are total employees. The major competitions of STS Hero are better
service for two-wheelers, etc. STS Automobile is the small scale unit.
The STS Hero began operation in 2012 under the leadership of Mr. Dhananjay
Sankhe for the better service provider of HERO two-wheelers and they are
providing service department, accident department, advantage department with a
diversified product range and a reputed market presence.

18 | P a g e

STS Automobile

HISTORY AND DEVELOPMENT OF STS

Mr.Dhananjay Sankhe who was already having a transport business wanted to
diversify & after lot of thinking got the idea of taking up sales & service of two
wheelers.
The idea of getting dealership comes in his mind by a newspaper. The newspaper
contains an advertisement for dealership of Service and Spare parts (SSP) of hero
Honda. Because that time the company name is Hero Honda.Then he plan to grab
this opportunity and so, he plan to go for the interview for the same. The nature of
Mr.Sankhe Forced hero Honda to give dealership to Mr.Sankhe.
Initially they had an office in Harmony plaza Boisar for sales and service by the
name STS Automobile, the service renders STS Automobile was remarkable.
They were expert in service and always worked hard for the satisfaction of the
customer. They tried to build loyalty and trust worthiness amongst the customer as
well as employees, which lead to increase in sale.
They had created niche goodwill in the market. After smooth functioning of SSP
department. They thought to increase their business.
19 | P a g e

STS Automobile
So then they approached the company for the same. The hero Honda was already
impressed by STS Automobile performance so, by not take much time they thought
to give them Authorized Dealership for sales of bikes.This again was an
opportunity to prove their excellence in their area also.
Now STS Automobile was shifted to a new place with excellent infrastructure,
more no. of Staff, trained employees, well equip service stations, etc.
For faster service they increase their number of ramp to 8 and 12 Expert
mechanics, were also ready with instruments for rectifying the bikes. The
Customer had given huge priority so STS Automobile has a customer care and
redressed department.
They have various attractive offers and schemes for the customers during the
festivals. They are also engaged in social work. They mostly recruit the people
from nearby vicinity and Provide various sponsorship activities to locality for sport
like cricket tournament, Dahihundi, etc.
They also sponsor annual cultural programs at SAS institute of management
studies Saravali Boisar. Were they conduct an program called SAS HERO an
Talent hunt program for the college from Dahanu to Borivali and reward the
winner with an attractive cash price.
STS Automobile also has its sub center in Palghar. And AED in Vikramgard and
test ride center at Chinchani.
The excessive hard work and constraint monitoring of the activities for the smooth
flow of business has resulting for growth flow of business has resulting for growth
of STS Automobile.

20 | P a g e

STS Automobile

COMPANY AT A GLANCE:
Name of the Company:
STS AUTOMOBILE PVT.LTD
Address:
Plot No J-96, Nr Mahavir Chambers
Tarapur MIDC Area, Distt Thane
Boisar 401506
Maharashtra
Ph: 02525-645077 645188/645177/266353/
Email: sts.boisar@heromotocorp.biz
Top Management:

Mr.Dhananjay Sankhe

21 | P a g e

STS Automobile
Workshop Manager:

Mr.Vivek Sankhe

Parts Manager

Mr.Navjot
Customer Relationship Manager

Mrs.Asmeeta

Top Products
22 | P a g e

STS Automobile

New Karizma R

Splendor NXG

New Karizma ZMR

HF Deluxe

HF Dawn

Splendor Plus

New Pleasure

Passion Plus
23 | P a g e

STS Automobile

Splendor Pro

Passion Pro

Maestro

Passion Xpro

Super Splendor

Glamour FI

24 | P a g e

STS Automobile

Achiever

Implus

Hunk

CBZ Xtreme

Bankers:
HDFC finance
L&T Finance
Location on map:

25 | P a g e

STS Automobile

PRODUCTION DEPARTMENT
Organization structure:
Below is the organizational structure of STS Automobile

26 | P a g e

STS Automobile
Top management
(Dhananjay
sankhe)

General manager
(Lambian)

Sales manager
(Subhod)

Sales persons

Account manager
(Jayesh)

Assistant account
person

Workshop
manager
(Vivek sankhe)

Formens and
workers

Introduction
The very essence of any business is to cater needs of customer by providing
services and goods, and in process create value for customers and solve their
problems. Production and operations management talks about applying business
organization and management concepts in creation of goods and services.
Production
Production is a scientific process which involves transformation of raw material
(input) into desired product or service (output) by adding economic value.
Production through separation: It involves desired output is achieved through
separation or extraction from raw materials. A classic example of separation or
extraction is Oil into various fuel products.
Production by modification or improvement: It involves change in chemical and
mechanical parameters of the raw material without altering physical attributes of
27 | P a g e

STS Automobile
the raw material. Annealing process (heating at high temperatures and then
cooling), is example of production by modification or improvement.
Production by assembly: Car production and computer are example of production
by assembly.

Importance of Production Function and Production Management

Successful organizations have well defined and efficient line function and support
function. Production comes under the category of line function which directly
affects customer experience and there by future of organization itself.
Aim of production function is to add value to product or service which will create a
strong and long lasting customer relationship or association. And this can be
achieved by healthy and productive association between Marketing and Production
people. Marketing function people are frontline representative of the company and
provide insights to real product needs of customers. An effective planning and
control on production parameters to achieve or create value for customers is called
production management.
Operations Management
As to deliver value for customers in products and services, it is essential for the
company to do the following:

28 | P a g e

STS Automobile
1. Identify the customer needs and convert that into a specific product or
service (numbers of products required for specific period of time)
2. Based on product requirement do back-ward working to identify raw
material requirements
3. Engage internal and external vendors to create supply chain for raw material
and finished goods between vendor production facility customers.
Operations management captures above identified 3 points.
Production Management v/s Operations Management
A high level comparison which distinct production and operations management can
be done on following characteristics:
Output: Production management deals with manufacturing of products
like (computer, car, etc) while operations management cover both
products and services.
Usage of Output: Products like computer/car are utilized over a period of
time whereas services need to be consumed immediately
Classification of work: To produce products like computer/car more of
capital equipment and less labour are required while services require
more labour and lesser capital equipment.

29 | P a g e

STS Automobile
Customer Contact: There is no participation of customer during
production whereas for services a constant contact with customer is
required.
Production management and operations management both are very essential in
meeting objective of an organization.
Plant Location:

Material handling:

30 | P a g e

STS Automobile
Material handling is one of the important part or subject to be
concern for any service sector unit.
In STS also more emphasis is given to material handling, so that customer get
more satisfy.
As there is no movement of raw material in STS Automobile they pay more
attention to the quality of finish product.
Warehousing:
A warehouse is a commercial building for storage of goods. They
are usually large plain building use to load and unload goods from trucks.
STS Automobile has warehouse capacity of 200-300 no of bikes.
Purchase function:
As they deal with the finished product directly, they wouldnt
purchase raw material.
They place order directly with the manufacturing unit using online software
(S.S.G.C) specially designed for STS Automobile.
Order should be place before a month age and it should be depends on no. of bikes.

MARKETING DEPARTMENT
31 | P a g e

STS Automobile
Introduction
Definition of Marketing:
Marketing is a social and management process by which individuals and group
obtain what they need through creating and exchanging products and value with
other.
By PHILIP KOTLER
Definition of Marketing Management:
Marketing management means analyzing, planning, implementing and controlling
the marketing activities with the objectives of marring the desired exchange
mutually advantageous to the seller and the buyer. By PHILIP KOTLER
1 Selling focuses on the need of the seller, marketing on the needs of the buyer.
2 Marketing with the ideas of stashing the needs of the customer by the means of the
Product and the whole customer of the things associated with creating and finally
consuming it.
3 The marketing concept rests on four pillars, target marketing, marketing
profitability.
4 The marketing concept takes an outside in perspective.

Organization structure of marketing department:

32 | P a g e

STS Automobile
Top
Management
General
Manager
Sales
Manager

Sales
Executives

Billing
Department

Insurance
Department

Marketing mix
The marketing mix is a business tool used in marketing and by marketing
professionals. The marketing mix is often crucial when determining a product or
brand's offering, and is often synonymous with the four Ps: Price, Product,
Promotion, And Place; in service marketing, however, the four Ps have been
expanded to the Seven Ps to address the different nature of services.
Product
A product is seen as an item that satisfies what a consumer needs or wants. It is a
tangible good or an intangible service. Intangible products are service based like
the tourism industry, the hotel industry and the financial industry. Tangible
products are those that have an independent physical existence.

33 | P a g e

STS Automobile
The marketer must also consider the product mix. Marketers can expand the
current product mix by increasing a certain product line's depth or by increasing
the number of product lines.
Product mix:
According to Philip Kotler Product mix (also called as product assortment) is the
set of all products and items a particular seller offers for sale. Product mix
pertains to the variety of products a company sells. There are four dimensions to
product mix, namely, width, length, depth and consistency.
Width: The width of the product mix consists of all the product lines that the
company has to offer to its customers. If we take P&G for example, the width of
the product line would consist of Hair Products, Oral care, Soaps and Detergents,
Baby Care, Personal Care and Home care.
Length: Length of the product mix includes the total number of products offered
to the customers. The number of products provided by P&G is 16 which is the total
length of its product mix.
Depth: Depth of a product mix pertains to the number of variants that are offered
in each product in the line. If we take the example of Ariel we can see that it is
available in a lot of sizes (100 GM, 250 GM, 1kg, etc.) and different types likeFront O Matic and Fragrances etc.
Consistency: Consistency of a product mix refers to the relationship of the various
product lines in terms of end use, product requirements, distribution channels, or
some other way. P&Gs product lines are all consistent because they only
concentrate on selling FMCG products.

34 | P a g e

STS Automobile
Product line: (length and width):

T
w
o
w
h
e
el
er

Passion xpro
Ignitor
Maestro
Impules
HF Dawn
HF Deluxe
Pleasure
Splendor plus
Splendor NXG
Passion pro
Super splendor
Glamour
Splendor pro
Glamour PGM Fi
Achiever
Xtreme
Hunk
Karizma
Karizma ZMR

35 | P a g e

STS Automobile

Product depth:

Passion

Xpro
Pro

Splendor

Plus
NXG
Super
Pro
iSmart

Glamour

Glamour
PGM Fi

Karizma

Karizma
ZMR

Where,
No of items (length):19
No of lines (width):01
No of items (depth): 12

36 | P a g e

STS Automobile
PRICING
Introduction
Pricing is a very crucial matter for the marketing manager because it
affects the demand, sales promotion, competitive strength of the business unit, ego
satisfaction of the customers and ultimately the profit. Sometime, it happens that
efficiency of other functional areas is attached by the faulty price decisions.
Therefore, extra ordinary care should be taken at the time of marketing pricing
decisions.
Definition of pricing:
Pricing is the element in the marketing mix that creates sales revenue,
the other elements are costs.
Economist defines prices as the exchange value of a product or service always
expressed in money.
Money (price) = Balance of expectations or satisfactions.
Include in the bundle of expectations may be physical product plus other
attributes such as delivery, installation, credit, return privileges, after sales
servicing and so on.
Methods of Pricing:
STS Hero is follows Cost oriented method or cost based methods of pricing:

STS are following these factors:

37 | P a g e

STS Automobile
Ex. Showroom prices
+
RTO charges
+
Insurance charges
+
Road Tex
=
On Road Price
+
Optional cost (GL+ACC)
=
Total price

Different price of the product:

NO
.
1
2
3
4

MODELS OF BIKE
CD DAWN DRK SCR
CND DLX DRK CCR
CND DLX DRS CCR
J2-HF-CD DELUXE DRS

PRICE IN RS.
(on road)
50587
54622
57043
58285
38 | P a g e

STS Automobile
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

CCR
SPLENDOR PLUS DRK
SCR
SPLENDOR PRO DRS
CCR
SPLENDOR PRO DRK
CCR
SPLENDOR PRO DRS
SCR
SPLENDOR PRO DRS
SCR(SPL)
J1-SPLENDOR PRO DRS
SCR (SPL)
SPLENDOR ISMART
DRS SCR
SPLENDOR ISMART
DRS CCR
PASSION PRO DRS CCR
PASSION PRO DSS CCR
PASSION PRO DRK CCR
IGNIATOR-DRUM SELF
IGNIATOR-DISK SELF
SUPER SPL DRS CCR
GLAMOUR DRS CCR
GLAMOUR DSS CCR
GLAMOUR DSS FI CCR
PASSION XPRO DRUM
SELF
PASSION XPRO DISK
SELF
XTREME DSS CCR
XTREME DDS CCR
ACHIVER DSS CCR
HUNK DSS CCR

57602
59588
61947
60706
63189
62568
62898
64140
63375
65672
61016
75104
77587
67162
69370
71854
81010
66517
68876
81451
85012
75547
85330
39 | P a g e

STS Automobile
28
29
30
31
32
33
34
35
36

HUNK DDS CCR

IMPULSE DISC SELF
SPOKE
KARIZMA (NEW)
KARIZMA ZMR FI
PLEASURE DRS CCR
PLEASURE DRS CCRSPL EDI
PLEASURE DRS MCRNEW
PLEASURE DRS CCRNEW
MAESTRO DLX

89055
88372
100012
125414
57805
59046
60547
62319
64304

40 | P a g e

STS Automobile
Place
Level:

Hero Motocorp
STS Motors
Customer
Warehouse:
STS Automobile has very large warehouse which can store 200-300 bikes or
scooters.
Promotion
Consumer promotion tools:
1
2
3
4

Coupons
Premiums (gifts)
Free trails
Product warranties
41 | P a g e

STS Automobile
5 Cash refund offers
6 Exchange fai
Physical Evidence
Physical evidence is the material part of the service. There is much
physical evidence, which is as follows:
1 Front Part of Showroom

2 Banners

3 Uniforms:
For Males
42 | P a g e

STS Automobile

Technician

Frontline

T-shirt&

supervisor

Trousers

Shirt&

Sales T-shirt
& Jeans For Females:

Trousers
Works
manager
jacket

Sales
saree

Sales salwar
suit

4. Sign boards
5. Logo
6. Brochures
7. Building
8. Companys website

43 | P a g e

STS Automobile
Peoples
Peoples deliver service in all sorts of settings. Its an important element of
the service marketing mix. If you go to an organized event such as the Olympic
then everything about the experience is undertaking by peoples. Behind the scene
there are project manager, staffs and accountant. The people deliver the service and
this is the same for the any other organized organization.
Process
Here process is more about the customer interference; its about how the
staff or management handles with their clients or customers.

FINDINGS

44 | P a g e

STS Automobile
The study finds that majority of customer were highly influenced by the comfort of
the bike. It is important to note that experienced customers are one of the
important influencing factors behinds a number of purchases.
Following are the other important findings of the study,
Age:
Majority of the customers falling under the age group of 20-30
Buying preference:
Majority of the customer prefer comfort as an important factor while making the

purchase decision of a bike.

Style:
Most of the customers were influenced by the style of the bike.
Comfort:
Most of the customers were influenced by the comfort of the bike.
Mileage:
Majority of the customer prefer mileage as an important influencing factor.
Price:
Most of the customers were influenced by the price of the bike.
Product features:
Most of the customers were influenced by the product features of Heros bike.
Technology:
Most of customers were influenced by the technology of the Heros bike.
Parts and service availability:
Most of the customers were influenced by the parts and service availability of the
Heros bike.
Brand perception of customer:
Most of the customers were influenced by the brand image of Hero.
Purchase of buying:
Majority of the customers were purchased their bike for personal purposes.
Advertisement:
Majority of the customer were influenced by the advertisement.
Experienced users:
It is important note that experienced customer become an important influencing

factor behind a number of purchases.

Customer satisfaction:
45 | P a g e

STS Automobile
Majority of the customer were highly satisfied about the performance of the bike.

CONCLUSION
According to me Mr. Dhananjay Sankhe sir is very passionate about his work and
he start from scratch and he makes dream come true. Because sir knows his aim and
he had lots confidence on his work. After studying the whole organizational
processes and procedures we have rated the firm 8.5/10.
The below suggestions will improve the organizations development.
We have learned from this training that how to influence the customers, various
marketing techniques, etc.
According to me, no other company can beat this company in the years to come
because of its strong brand name in the market. This company would be successful in
the years to come as the company has good amount of brand loyal customers. When
there is talk of bike, the first thing that comes to mind is hero motocorp because of
strong brand image. In our study the main emphasis was towards the marketing mix

46 | P a g e

STS Automobile
elements (product, place, price and promotion). The analysis is totally based on the
marketing mix elements.

SUGGESTIONS
Means of advertisement:
The firm has to increase the means of advertisements i.e. through radio
channels, local TV channels and local newspapers.
This will increase the sales of the firm.
Company should make plan for take interest in cruiser segment.

47 | P a g e

STS Automobile

BIBLIOGRAPHY
Books
Financial Management by I M Pandey
Marketing Management by Philip Kotler
Production Management by K. Ashwathappa
Internet:
www.wikipedia.com
www.businessdictionary.com
www.stshero.heromotocorpdealers.com
www.heromotocorp.com
Top management by:
Mr. Dhananjay Sankhe
(CEO of STS Automobile)
Mr. Lambiar
(General Manager)
Workshop management by:
Mr. Vivek Sankhe
(Workshop manager)
Account management by:
Mr. Jayesh
(Account manager)

48 | P a g e