1

INTRODUCTION
Automobile is one of the largest industries in global market. Being the leader in
product and process technologies in the manufacturing sector, it has been
recognized as one of the drivers of economic growth. During the last decade, well
directed efforts have

been

made to provide a new look to the automobile

policy for realizing the sector's full potential for the economy. Aggressive
marketing by the auto finance companies have also played a significant role in
boosting automobile demand, especially from the population in the middle
income group.
A Nations economy is well known from its transport system. For instant and rapid
growth in economy, a well-developed and well-networked transportation system
is essential. As India's transport network is developing at a fast pace, Indian
Automobile Industry is growing too. Also, the Automobile industry has strong
backward and forward linkages and hence provides employment to a large section
of the population. Thus the role of Automobile Industry is very essential in Indian
economy. Various types of vehicles are manufactured by the Automobile Industry.
Indian Automobile Industry includes the manufacturing of trucks, buses,
passenger cars, defense vehicles, two-wheelers.
The two-wheeler manufacturing is dominated by companies like Hero Honda
TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Yamaha, Bajaj, etc.
The automobile industry in the country is one of the key sectors of the economy
in terms of the employment opportunities that it offers. The industry directly
employs close to around 0.2 million people and indirectly employs around 10
million people. The prospects of the industry also has a bearing on the auto-

2
component industry which is also a major sector in the Indian economy directly
employing 0.25 million people.

All is not well with the automobile industry the world over currently with the
slowdown that has gripped most of the major economies of the world. The gap
between the manufacturing capacity volume and the assembly volume is growing
by the day and has worried the manufacturers. This state of affairs has triggered a
lot of cut-throat competition and consolidation in the industry. Cost reduction
initiatives have come to be the in thing in the global industry today. Towards this
direction, many automobile factories are being closed down. The Indian
automobile industry is a stark contrast to the global industry due to many of the
characteristics, which are peculiar to India. The Indian automobile industry is very
small in comparison to the global industry. Except for two wheelers and tractors
segments, the Indian industry cannot boast of big volumes vis--vis global
numbers.

OVERVIEW OF TWO WHEELER SECTOR

Two Wheeler Industry
The Indian two wheeler contributes the largest volumes 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-thrus. In the last four to five years, the two-wheeler market has witnessed a
marked shift towards motorcycles at the expense of scooters. In the rural areas,

3
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 in the twostroke segment to install catalytic converters. All the new models are now being
replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced
from 32% to 24%, resulting in price reduction, which has aided in propelling the
demand for motorcycles.
Within the two-wheeler industry, motorcycle segment grew at a phenomenally
high rate of 35% as against a deceleration of 3% for scooters and 27% for
mopeds.
In fact, motorcycle has been taking away the share of scooters and mopeds in a
4.3 million two-wheeler market and surging ahead with its market share of 68%.
The increasing demand from semi-urban and rural segments may have caused this
positive shift towards motorcycles. Also, easy credit coupled with low interest
rate regime, constrained personal transport, increasing income levels in middle
class and higher aspirations of young people all seem to be the factors responsible
for such high growth in two-wheelers. The growth in two-wheelers has been
robust enough to counter the slow down and other factors constraining the overall
business activity in the country. Also, rationalization of excise duty in the Union
Budget 2002-03 had a positive impact on the demand for motorcycles. We also
expect the motorcycles to continue to lead the two-wheeler segment like in all
other Asian countries. Available forecasts suggest that this trend would continue
for another couple of years and the industry would record nearly double-digit
average annual growth up to 2006.
During the year, there have been important developments in two-wheeler industry.
The competition has strengthened though there are hardly any new entrants into

4
the industry. There is an increasing emphasis on price and this has led to cost
cutting efforts all across the industry, thereby, making the customer an ultimate
beneficiary. The trend also saw introduction of new motorcycles with capacity
ranging from 100 to 180cc bikes. We anticipate that many more new models will
be launched during the year and provide customers plenty of choice at
competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each
business has a tendency to taper and plateau after attaining a particular size. An
annual growth rate of 10-12 percent over a period of time is extremely healthy.
The TCS study rankings are conducted at the motorcycle segment-level to provide
comparisons among similar groups of motorcycles. Motorcycles ranking highest
in the irrespective segments for TCS are: Hero Honda CD100 SS (best standard
motorcycle segment); Hero Honda Splendor (best executive motorcycle segment);
"The relatively low score for the premium segment indicates that most
manufacturers have fallen short of meeting the high expectations of these buyers,
states Mr. Lochan. Indians prefer the two wheelers because of their small
manageable size, low maintenance, and pricing and easy loan repayments. Indian
streets are full of people of all age groups riding a two wheeler. Motorized two
wheelers are seen as a symbol of status by the populace. Two wheelers in India
are the second largest producer and manufacturer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers
produced and domestic sales respectively. Indian two-wheeler industry has got
spectacular growth in the last few years. Indian two-wheeler industry had a small
beginning in the early 50's. The Automobile Products of India (API) started
manufacturing scooters in the country.
Bikes are a major segment of Indian two wheeler industry, the other two being
scooters and mopeds. Indian companies are among the largest two-wheeler
manufacturers in the world. The two-wheeler market was opened to foreign
competition in the mid-80s. With the availability of fuel efficient low power

5
bikes, demand swelled, resulting in Hero Honda -then the only 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.
EVOLUTION OF TWO-WHEELER INDUSTRY IN INDIA:
Two-wheeler segment is one of the most important components of the
automobile sector that has undergone significant changes due to shift in policy
environment. The two-wheeler industry has been in existence in the country since
1955.It consists of three segments viz. scooters, motorcycles and mopeds. In India
there are some MNCs and Indian company dealing in automobile sector. The
main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha,
Honda, and TVS. Hero Honda is the biggest player in this sector in India as well
as in the world and playing a very important role in two wheeler automobile
sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha &
Honda are international automobile brand.

INTRODUCTION OF HERO HONDA MOTORS LTD

Today if one talks about Indian two-wheeler industry, reference to Hero Honda
Motors Limited is by default. It is not only the market leader in the two wheeler
segment in India but also is the number one two wheeler company in the world by
volumes. The companys name is synonymous with fuel-efficient bikes and
longevity. The company has a presence in all bike segments viz. economy (CD
100SS, CD Dawn) executive (Super Splendor, Splendor+) and premium
(Karizma, CBZ). Splendor is the most successful product of the company and
accounts for almost 50% of the companys turnover.
Hero Honda is a two-decade-old story. It came into existence as a joint venture
agreement between the Munjal familys Hero Group and Honda Motor Company
(HMC) of Japan, each having 26% stake in the company. A ten year agreement
was first entered in the year 1984, whereby HMC brought in technical expertise
and Hero Honda brought in local talent to manage all other functions including
marketing, finance, and human resources. The agreement was once again renewed
in 2004 and has been extended till 2014.

7
The Indian two wheeler industry has seen a paradigm shift from being a regime of
regulation and tight control in the 1980s to a more liberalized and a competitive
present day era. After missing out on the initial boom in two wheeler segment
during the period of 1993-1996, Hero Honda has emerged as a world leader. The
gap between motorcycles sold by Hero Honda and its closest rival is
approximately 1 m units (23% of industry size). One of the reasons for the
tremendous performance of Hero Honda is the significant increase of share of
motorcycles in the two-wheeler segment, from 42% in FY99 to 77% in FY04. No
doubt, that the shift in preference of Indian populace from scooters and mopeds
towards motorcycles has facilitated the growth of Hero Honda. However its
performance vis--vis industry indicates that the performance of Hero Honda was
better than the industry peers, barring two years. In the seven-year period ending
FY04, it has achieved a CAGR of 30% in two-wheeler volumes against 11% of
the industry.

MARKET SEGMENTATION:
Demographic Segmentation
Income: Our customer survey indicates that the segments available for the
Hero Honda bike are the people with monthly income of Rs. 10,000 and
above.
Age: The main segmented group for the motorcycle are 18 years and above.

Occupation: All kinds of people are taken into account. Students, professionals,
Govt.Servants, etc.

Geographic Segmentation:
The potential customers are basically from every regions of India.
Psychographic segmentation:
People purchasing bikes are very stylish, brand conscious.

Behavioral segmentation:
This segmentation is done considering user status, benefit wise.

TARGETING
The proposed targeting people in the age group of 18 years and above with a monthly
income of Rs. 10,000 and above, who are adventurous, enthusiastic and socializing and who
are either students or retired individuals or may be employed as professionals, government
servants or having their own business, but mostly male. Even today females are also targeted
by introducing Hero Honda pleasure.

MARKETING MIX OF HERO HONDA:

PRODUCT :
The tangible offer to the market, which includes the product quality, design,
features, branding and packaging. The product is perfectly designed and all the
switch are well placed, which provides a good riding condition.
PRICING:
Pricing is an important component of marketing mix of the firm. Determining the
prices of Different products of a firm is very difficult task of the marketing
manager. Price denotes money value of a product. It represents the amount of
money for which a product can be exchanged. In other words, prices represents
the money which the buyer pays to the seller for a product price represent the
exchange value of goods and services in terms of money. Price is all around.

9
Price factor has very well been touched by the manufacturers. The manufacturers
are charging very comparatively cheaper price i.e. Rs 45000 approx. The pricing
strategy of the company is very set. They price their product according to the cost
of production and also by keeping an eye on the price of the competitors of that
segment and demand of the product in the market.
A pricing strategy that ensured an average manufacturer margin that game dealer
an adequate return and created a reputation with consumers like a company
selling a good quality product at a reasonable price. Industry focuses themselves
the low cost producer with good quality and aimed to maintain the price
advantage in every market of two wheelers.
Hero Honda group ensures an easily affordable pricing through excellent
transportation to common man. I fixes customer centric pricing that provide
customer total satisfaction. Hero Hondas pricing objectives are:

List price

Discount

Financing schemes

Credit terms and

Maximize profits

Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. It fixes customer centric pricing that provides the
customer with total satisfaction.
PLACE:

10
HERO HONDA has direct contact with the dealers. There are no middlemen
involved. The dealers directly sell to the customers. The channel is of 1st level
which has only the dealers as the link between the customers and the company.
What Does Customer Want?
The customers of Hero Honda are very particular about the colors that Hero
Honda offers in its wide variety of bikes. The customers are very much aware of
their purchase. Gone are the days when the sales people could influence the buyer
to buy a particular product. Almost 90-93% of the customer, whoever comes to
the showroom? Usually comes after he/she had made a decision. So, the work of
the sales person is less. The rest 7-10% have some doubts with regard to the
purchase of Hero Honda. It is here, where the sales persons have to do some work
in convincing the customers about the bike. The sales person in this regard
conveys the customers about the mileage, strokes and also the parameters that the
customers enquire.
How Is The Price Determined According To The Change?
Manufacturer, on the basis of the cost of production determines the price and the
factors like tax and others. Usually the sales tax on the two wheelers is 8% but in
Hero Honda it is 4%. This is because Delhi Government has found out that the
pollution from Hero Honda is very less due to the catalytic converter which every
model of Hero Honda have. The government has identified that by using the
catalytic converter Hero Honda is helping the environment which is a social
cause. Hero Honda Bikes not only have market in India, but also in abroad. To
maintain the differences in market of the different companies it takes the help of
the local manufacturers or the dealers outside for the distribution of their bikes
smoothly.
SALES PROMOTION:

11
Sales promotion is any initiative undertaken by an organization to promote an
increase in sales, usage or trial of a product or service (i.e. initiatives that are not
covered by the other elements of the marketing communications or promotions
mix). Sales promotions are varied. Often they are original and creative, and hence
a comprehensive list of all available techniques is virtually impossible (since
original sales promotions are launched daily!). Here are some examples of
popular sales promotions activities:
(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating
promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to
manufacture, if you sell two for $1, you are still in profit - especially if there is a
corresponding increase in sales. This is known as a PREMIUM sales promotion
tactic.
(b) Customer Relationship Management (CRM) incentives such as bonus points
or money off coupons. There are many examples of CRM, from banks to
supermarkets.
(c) New media - Websites and mobile phones that support a sales promotion. For
example, in the United Kingdom, Nestle printed individual codes on KIT-KAT
packaging, whereby a consumer would enter the code into a dynamic website to
see if they had won a prize. Consumers could also text codes via their mobile
phones to the same effect.
(d)Merchandising additions such as dump bins, point-of-sale materials and
product demonstrations.

12
(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each
sandwich purchase. Once the card was full the consumer was given a free
sandwich.
(f) Discounted prices e.g. Budget airline such as Easy Jet and Ryan air, e-mail
their customers with the latest low-price deals once new flights are released, or
additional destinations are announced.
(g) Joint promotions between brands owned by a company, or with another
company's brands. For example fast food restaurants often run sales promotions
where toys, relating to a specific movie release, are given away with promoted
meals.
(h)Free samples (aka. sampling) e.g. tasting of food and drink at sampling points
in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away
to potential consumers at supermarkets, in high streets and at petrol stations (by a
promotions team).
(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.
(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio,
on The Internet, and on packs.
(k) Cause-related and fair-trade products that raise money for charities, and the
less well off farmers and producers, are becoming more popular.
(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.
Many of the examples above are focused upon consumers. Don't forget that
promotions can be aimed at wholesales and distributors as well. These are known

13
as Trade Sales Promotions. Examples here might include joint promotions
between a manufacturer and a distributor, sales promotion leaflets and other
materials (such as T-shirts), and incentives for distributor salespeople and their
retail clients.
Advertisement, local events sponsorship and promotions and inviting a prominent
personality for the inaugural or first like delivery function would contribute
effectively in generating a wider local interest and attention.
Hero Hondas latest DKD 2 commercial its two brand starring its Ambassador
and Indias heart throbs, Hritik Roshan and Sourav Ganguly, truly reflects the
multi fact roles that todays new generation plays. The commercial reflecting the
charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new
heights. It is young, colorful and vibrant and represents the icons of contemporary
times. And it will go a long way in strengthening the leadership status of the
product by the mile.
The new commercial is powerful film repeat with an impressive storyline. The
effort to pack the story, drama and impact in just 60 seconds was phenomenal
challenge itself. The idea was born itself. The idea was born out of the very
essence of Hero and Stars. Keeping in mind would cause on the drama and
impact it would cause on the audience. It is a commercial packed with action
where todays heart throbs, Hritik and sourav, are seen tackling new roles. The
story being in a field adjoining a hill with two cool men, Hritik and Sourav on
Hero Honda bikes and Passion respectively.
Promotion concerns the message that firm sends out to potential
consumers. It provides information and persuades people, it creates awareness,
stimulates demand and differentiates the product and influences public behavior.
Promotion wont make a bad product that no one wants a success; although the
absence of promotion might at a good product is not successful, promotion

14
includes all the activities or tools a company uses to communicate or promote its
product in the market.

PROMOTION TOOLS :
Companies must allocate the marketing communications budget over the eight
major modes of communication.
Advertising
Sales promotion
Public relations and publicity
Events and experiences
Direct marketing
Word of mouth marketing
Companies are always searching for ways to gain efficiency by replacing one
communication tool with others. Many companies replace some field sales
activity with ads, telemarketing etc. substitutability among communication tools
explains why marketing functions need to be coordinated.

ADVERTISING :
It reaches geographically dispersed buyers. It can build up a long term image or a
product or trigger quick sales. Certain forms of advertising such as TV can require
large budget whereas other forms such as newspapers do not. Just the presence of
advertising might have an effect on sales.
SALES PROMOTION:

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Companies use promotion tools such as
Coupons
Contests
Premiums to draw a strong and quicker buyer response , including shortrun effects such as highlighting product offers and boosting sagging sales.
Sales promotion is a key ingredient in marketing campaign, consists of a
collection of incentive tools, mostly short term, designed to stimulate quicker
or greater purchase of particular products or services by consumers or the
trade.
When advertising offers a reason to buy, Sales promotion offers an incentive
to buy. Sales promotions include tools for consumer promotions like
Coupons
Cash refund offers
Price offs
Premiums
Prizes
Patronage rewards
Free trials
Warranties

1. PERSONAL SELLING: It involves personal confrontation either by phone or

face, it
is an expensive and time-consuming tool of promoting the product.

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2. ADVERTISING: It is defined as a paid non-personal communication with a
target
(Usually mass) market. It is cost effective and can reach a large number of people.
It can also be used for long term or short term objectives.
There are various forms or mediums through which can advertise.
A. Broadcast Media:
Television
Radio
Cinema
B. Print media:
Newspapers
Magazines
Leaflets
C. Outdoor media:
Posters and billboards.

1. PUBLIC RELATIONS AND PUBLICITY:

Public relations are an umbrella term and refer to the totality of the
organizations behavior with respect to the society in which it operates. They may
be regarded as good or bad and is reflected in the companys reputation and
image.
2. SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly the case
that some sponsorship goes on to generate positive publicity for the organization.
3. DIRECT MARKETING:

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It is an interactive system of marketing which uses one or more advertising media
to affect a measurable response at any locations.
4. DIRECT MARKETING INCLUDES:
Direct mail.
Telemarketing.
Door to door selling.
Direct response advertising: phone now or fill in the coupon ads
Home shopping of various types.
Factors that guide a marketers decision in selecting a promotion mix:
a) Nature of product
b) Overall marketing strategy
c) Buyer readiness stage
d) Product life cycle stage

1. SPONSORSHIPS:
The company has not left any stone untamed in sponsoring the major events
both globally and domestically. The biggest of all is the sponsorship of the
WORLD CUP for which Hero Honda has the credit of being the only twowheeler company in the world to do so. Besides this, the company has also
sponsored events like Master Golf, television academy awards, etc,
Thus the company has gained a lot of reputation by doing so.

2. DISCOUNTS/OFFERS:

18
The company has started giving discounts and other offers to the customers on
the purchase of anew bike, for instance, with the World Cup offer, in which the
consumer was to get a 1 gm gold coin with every purchase.
But after all these schemes and benefits may be because of cut-throat
competition in the segment with heavyweight competition such as Bajaj, kinetic,
Yamaha, and TVS the company (HERO HONDA) officially says:
Our aim is to proactively and consistently deliver value to the customer. We
are giving back to the customer after becoming successful. Most companies give
discounts only when their products are not doing well in the market. There is lost
of competition in the segment, especially from Bajaj. But the reason for Hero
Hondas success it that we are consumer-focused while other companies such as
Bajaj tends to be more competitor-focused.
PROMOTION POLICY:
Company gives advertisement in different media vehicles time to time. Like
in

TV. Magazines, newspaper, etc.

Hero

Honda

Hero

Honda

also

organizes
also

free

takes

service

camps

part

in

every
trade

year.
fair.

Hero Honda with the help of ICICI Bank provides loan to the customers &
also provide easy monthly installment scheme to customers.
Hero Honda gives huge commission to their dealers.
The various promotional activities adopted by the Hero Honda Company.
The company has 100crore rupees for its promotional activities out of which
75% is sponsored by the company and 25% from the dealers.
They may sign a celebrity for its promotional activities in recent futures.

The company provides six free services to its customers in comparison to

its competitors.

19

The company provides good services facilities to its customers through dealers

service station.

Dealers encourage its customers by giving discount, providing 0%

interest loan schemes, prices, coupons etc.

The various promotional activities adopted by Hero Honda bikes are as
follows Credit & finance schemes
Free services to the consumers
Advertisements on Televisions, Newspapers, Magazines
Road Shows
Free trials for the new consumers

OBJECTIVES OF SALES PROMOTION:

Sales promotion tools vary in their specific objectives. Sellers use incentive- type
promotions to attract new triers to reward loyal customers. Sales promotion seems
most effective combined with advertising. In one study, a price promotion alone
produced only a 15% increase of sales. When combined with feature advertising,
sales volume increased 19%. When combined with feature advertising and pop
display, sales volume increased 24%. Many large companies have a sales
promotion manager whose job is to help brand managers choose the right
promotional tools. Around one million consumers visit www.cool savings. Com
for offers from name brands as well as helpful tips and articles, newsletters, free
trials and more.

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HERO HONDA VISION, MISSION , STRATEGY:

Talking about the company's future plans, Hero Honda is committed to continue
its world class performance, by delivering even better value to the customers in
the years ahead by offering products with the latest technology, styling and
performance. Several new and exciting product launches are lined up for the
future.
HERO

HONDA

STRENGTHENS

ITS

PATRONAGE

WITH

CRICKET

Showcases the ICC Champions Trophy for members of the Hero Honda family in
Jallandher.
Hero Honda, the 'World No.1' two-wheeler company and the Global Partner for
all ICC cricket tournaments till 2007, has taken forward its association with
cricket with the sponsorship of the ICC Champions Trophy. Many cricket
enthusiasts came to have a glimpse of the trophy, which was looking sparkling
and

terrific in

its

form.

MISSION:
Hero Hondas mission is to strive for synergy between technology, systems and
human resources, to produce products and services that meet the quality,
performance and price aspirations of its customers. At the same time maintain the
highest

standards

of

ethics

and

social

responsibilities.

VISION:
The Hero Honda story began with a simple vision the vision of a mobile and an
empowered India, powered by Hero Honda. This vision was driven by Hero
Hondas commitment to customer, quality and excellence, and while doing so,
maintaining the highest standards of ethics and societal responsibilities. Hero
Honda believes that the fastest way to turn that dream into a reality is by

21
remaining

focused

on

that

vision.

STRATEGY:
Hero Hondas key strategy has been driven by innovation in every sphere of
activity building a robust product portfolio across categories, exploring new
markets, aggressively expanding the network and continuing to invest in brand
building activities.

MARKETING STRATEGIES OF TWO WHEELER DEALERS:

Its the best time of the year to find great deals. Taking advantage of the festive
season, manufacturers and retailers everywhere are rolling out the red carpet for
customers. The two-wheeler market is no exception. With competition heating up,
bike and scooter manufacturers and finance companies are doing all they can to
attract customers. If you already had a mean machine on your shopping list, here
are some good reasons to go get it now. The festival season spells better offers in
terms of discounts, freebies and attractive loan schemes. More importantly, with a
possibility of an interest rate hike, it is better to take advantage of prevailing rates.

OFFERS FROM DEALARS AND BANKERS:

Market leader Hero Honda, which sells over two Lakh bikes every month, is
wooing customers by offering a free Reliance phone connection worth

22
approximately Rs 3,500 with any bike model. An HDFC account holder also
gets free insurance regardless of the model.
In some cities, HDFC is also offering free registration or a dinner set to Hero
Honda customers. Registration costs are roughly Rs 2,900 the amount you
save as a customer.
ICICI is offering free registration and insurance in all metros; mobile handsets,
mobile

accessories, mobile connection or a camera in cities in Bangalore and

Chandigarh; free travel bags or dinner sets in Madhya Pradesh.

Tamil Nadu residents can also opt for a free domestic holiday. ICICIs
promotion for Hero Honda customers also includes a lower interest rate. At 13 per
cent for Hero Honda customers, equated monthly installments on a Rs 40,000
loan for 36months have fallen from Rs 1,445 to Rs 1,348. The nationwide
promotion also involves a scratch card contest and 25 lucky winners will be able
to grab gold.
INTEREST RATES AND DISCOUNTS:
There are also better interest rates and discounts. For example, Honda, a relatively
new entrant in the motorcycle market, has tied up with ICICI to offer an 8.4 per
cent interest rate and up to 96 per cent of the value of its Unicorn model. This is
13-16 per cent interest rate that ICICI offers on two-wheeler loans. HDFCs tie-up
with Honda Unicorn customers includes 100 per cent finance on the bike at a 1618 percent rate. The difference between ICICIs and HDFCs rate is that ICICIs
rate is flat rate, meaning that 8.4 per cent will be charged on the loan amount for
the entire tenure rather than a simple interest reducing balance calculation.
However, you should also consider public sector banks for two-wheeler loans. A

23
low cost of funds means that public sector bank rates range between 10.5-12 per
cent, compared to the 13-18 percent range offered by private sector banks. Also,
processing fees are a percentage point lower. However, there are no changes in the
12 percent interest rate on two-wheeler loans. Like other players, BOB offers
loans up to Rs 1 lakh for any two-wheeler for duration of up to 60 months.
However, BOB does not levy any prepayment penalty and the outstanding interest
is computed on a monthly rest.
HDFC is also leveraging its existing customer base. For existing customers, the
bank is waiving the last two equated monthly installments and the 2 per cent
processing fee, regardless of the model.

SBI has introduced a concessional rate of 10.5 per cent on two-wheeler loans

as compared to the usual 11 per cent.

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COMPANY PROFILE OF SRI SRI SRI AUTOMOBILES

Location
State:

Andhra Pradesh

District:

Warangal

City:

Warangal

Pin code:

506002

Contact Information
Email:

herohonda@sriautomobilesindia.com

Phone:

256173, 256212

Address:

H NO 15-2-28,MULUGU ROAD
Warangal
Andhra Pradesh - 506002

This is the first Hero Honda showroom in Warangal and the oldest one in the
entire district. It has two showrooms in Warangal one in Station Road and other is
at Mulug Cross. They have excellent servicing facilities and all the mechanics are
trained by the company and also the servicing center is well equipped with the
latest machinery and tools. They do the service and deliver on time.
They have moved to their own space and the show room is well maintained and

25
they have a separate space for displaying the new models of vehicles.
They have tied up with some banks to provide on the spot vehicle loans.

ABOUT THE STUDY

OBJECTIVES OF THIS STUDY

This study is done in keeping following objectives in view.
1. The main objective is to know the consumers expectations regarding the
promotional activities, and the impact.
2. To gain valuable insight into the two wheeler sector.
3. To have an overview of HERO HONDA BIKES.
4. To know the reputation of HERO HONDA BIKES in the market.
5. How the consumer preference towards the brand HERO HONDA BIKES.
6. The main objective is how to increase the reputation of Hero Honda bikes
brand in the market.
7. To understand its competitors in the business.
8. Create a good image in the market.

26
9. The survey is also aimed at reviewing the competitiveness of various Hero
Honda bikes.

RESEARCH METHODOLOGY AND RESEARCH DESIGN:

The aim is to bring a clear picture of the procedure followed
in the study.
Sample Size:
Total sample size was 100. Response taken by questionnaire.
Sample frame:
Since the research was localized, the sample frame consisted of local consumers
from Warangal.
Primary Data: - The Primary Data is to be collected through
1. Questionnaire
Secondary Data:- The secondary data is to be collected from
Dealers internal reports documents
Journals and magazines
Websites

27
Research Design: - The primary data and secondary data will be studied analyzed
appropriately and interpreted to extract certain facts. Whenever necessary
statistical tools and financial tools like tabulation, graphs will be used to present
the findings effectively.

EXPECTATIONS OF THE COMPANY FROM THIS SURVEY:

This survey will help the two wheeler sector to evaluate their product and
the services they deliver .this will act as a tool for the company to know their
opportunities and threats in the market. Expectations of the company from this
survey are:
1) How to maximize the sales.
2) To improve the promotional activities.
3) Customize the product as per the customers needs.

LIMITATIONS OF THE STUDY:

The study limited to the extent of available data.

An in depth study might not be done because of time

constraints.

The study is restricted to Two-wheeler dealers in

28
Warangal city only.

KEY MILESTONES OF HERO HONDA

Year

Event

1983 Joint Collaboration Agreement with Honda Motor Co.

Ltd. Japan signed
Shareholders Agreement signed
1984
Hero Honda Motors Ltd. incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced
500,000th motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School
in the memory of founder Managing Director, Mr.
Raman Kant Munjal

29
1994 New motorcycle model - "Splendor" introduced
1,000,000th motorcycle produced
1997 New motorcycle model - "Street" introduced
Hero Honda's 2nd manufacturing plant at Gurgaon
inaugurated
1998 2,000,000th motorcycle produced
1999 New motorcycle model - "CBZ" introduced
Environment Management System of Dharuhera Plant
certified with ISO-14001 by DNV Holland
Raman Munjal Memorial Hospital inaugurated - A
Hospital in the memory of founder Managing Director,
Mr. Raman Kant Munjal
2000 4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant
certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single
two-wheeler model
"Hero Honda Passport Programme" - CRM
Programme launched
2001 New motorcycle model - "Passion" introduced
One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced
2002 New motorcycle model - "Dawn" introduced
New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj
Singh, Harbhajan Singh and Zaheer Khan as Brand
Ambassadors

30
2003 Becomes the first Indian Company to cross the
cumulative 7 million sales mark
Splendor has emerged as the World's largest selling
model for the third calendar year in a row (2000, 2001,
2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced
Hero Honda became the World No. 1 Company for the
third consecutive year.
Crossed sales of over 2 million units in a single year, a
global record.
Splendor - World's largest selling motorcycle crossed
the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles
2005 Hero Honda is the World No. 1 for the 4th year in a
row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure"

31
introduced
2006 Hero Honda is the World No. 1 for the 5th year in a
row
15 million production milestone achieved
2007 Hero Honda is the World No. 1 for the 6th year in a
row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved
2008 Hero Honda Haridwar Plant inauguration
New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched
New 'Glamour Fi' launched
2009 Hero Honda GoodLife Program launched
Hunk' (Limited Edition) launched
Splendor completed 11 million production landmark

32
New motorcycle model 'Karizma - ZMR' launched
Silver jubilee celebrations.

PRODUCT POSITIONING:
The product of Hero Honda is classified into following 3 segments:
ECONOMY SEGMENT:
The characteristics of products from this segment focus on basic
transportation from one point to another. The emphasis is on fuel efficiency and
comfort. The promotion strategies used in this segment can be discussed through
the following products :
CD DAWN

33
Public ka naya transport& value naye zamane ki
Through this campaign the company tries to position this product as a basic
means of transport at an affordable price. Value for money and fuel efficiency are
the core focus areas of the product.
CD Deluxe Jiyo deluxe..chalo deluxe
The main focus of promotion campaigns for CD Deluxe is on style and a true
Value for 100cc motorcycle.
CD 100SS
Tough and rugged
This product represents toughness. The ability to handle even off-road, dirt
conditions with ease is its main USP. It is basically meant for the rural market.
EXECUTIVE SEGMENT:
The promotion strategies used in this segment can be discussed through the
following products:
SPLENDOR
Designed to excel
The ad shows a blind man identifying the product and assuring its quality. This
shows the blind faith that people have in this bike. It also promotes the Splendor
as the worlds best selling motorcycle which got better with the Splendor Plus
model.

34
PASSION
When style matters more
Though this product shares the same engine as that of Splendor it differs on the
styling front. It is targeted at young urban male who want a stylish and attractive
looking vehicle without compromising in fuel efficiency. In the starting it came up
with an add campaign of born in a studio not in a factory but later it has
modified it to when style matters more
SUPER SPLENDOR
Sarva guna sampanna
Super Splendor is another product which company launched very recently. It
promotes itself by saying Sarva guna sampanna means something that is good
at everything. The design is a derivative version of splendor and it uses an 125 cc
engine. Company claims it to be better than splendor in all respect including
power and fuel efficiency. Hero Honda believed some of those 100cc bike owners
would eventually shift to higher segments in the long run. So it wants to retain all
these Splendor buyers with in Hero Honda by providing a higher version of
Splendor.
GLAMOUR
Leave the G life
The Glamour is a brand new bike from the Hero Honda stable. Though it is yet to
be launched, all the pre-launch promotions and specifications suggest that it is an
attempt to gain some of the lost market share in the 125 cc upper-end executive

35
segment. Super Splendor and Glamour will operate in the same mechanism in the
125 cc segment as that of Splendor and Passion in 100 cc segment.
CBZ
Motorcycling unplugged
CBZ was the first sports bike launched by Hero Honda in India. It was targeted at
those customers who have a passion for style and speed. This is one of the most
stable bikes at high speeds.
KARIZMA
Jet set go
Karizma was targeted at a niche segment. It was a premium segment bike for
those people who can afford to pay a few extra rupees for the unmatched style and
speed. Karizma was positioned as a total pleasure bike. Hrithik Roshan is the
brand for this premium segment two wheeler product from Hero Honda.
SALES PROMOTION STRATEGIES AT DEALER LEVEL:
The company follows various strategies for sales promotion. Some of the methods
involved at the Dealer level are:
I. Test Drives for prospective customers.
II.Sponsorship Schemes for customers in association with HDFC and ICICI
banks.
III. Advertisement in showrooms on a company-dealer 50-50 basis partnership.

36
IV.Mobile Vans in remote areas for customer services i.e. after sales service.
V.Periodic rural fairs and to showcase the company models for prospective
buyers.
VI.Musical Nights conducted at important cities with a view to promote products.
ADVERTISING STRATEGIES:
The company mainly uses Billboards and signboards at major business
districts and major routes. Newspaper and TV advertisements to improve
consumer recall are also very prevalent. At the dealership level, the customers are
sent promotional material in the form of leaflets to initiate further contact and
increase customer awareness.

SALES REPORT OF HERO HONDA

The country's largest two-wheeler maker Hero Honda reported its highest ever
sales for a month in March at 5,15,852 units, registering a jump of 24.41 per cent.
The company had sold 4,14,638 units during the same month of last year, Hero

37
Honda Motors Ltd (HHML) said in a statement. For the entire 2010-11 fiscal,
HHML crossed 50-lakh sales mark by dispatching a cumulative sales of 54,02,444
units as against 46,00,130 units in the previous fiscal, up Hero Honda the worlds
no. 1 two wheeler company has posted growth of 24.41% in the month of March
2011 compared to March 2010. The company has sold 5,15,852 units of two
wheeler in the month of March 2011 compared to 4,14,638 units of two wheeler
sold in the month of March 2010. This is by far companys highest ever sales in
current financial year. The previous highest ever sales of 5,05,553 units in
October 2010.

This is the eleventh consecutive month where Hero Honda has sold more than 4
lakh units and the third time more than 5 lakh plus sale in the current financial
year. On the month on month basis the sale is up by 9.28%. The company
sold 4,72,055 units in the month of February 2011. Hero Honda has

38
sold54,02,444 units during April 2010 to March 2011 period up 17.44% compared
to 46,00,130 units sold in the same period last year.
Hero Honda Motors Managing Director and CEO Pawan Munjal said We are
delighted with this years sales performance, far surpassing our initial guidance of
5 million. Our growth rate is reflective of our strategic and marketing prowess,
which has ensured the sustained market leadership.
He also said Hero Honda initiated strategic and structural changes this fiscal,
which will begin to take effect in the near future. We are confident that our
initiatives will allow us to build on our leadership position. We will actively look
at exploring opportunities in newer markets, establishing a new brand identity and
further enhancing our in-house resources
The company is in final stage for the announcement of 4 th plant. Currently
companys three operational plants have 5.6 million units capacity. The company
is running at its optimum capacity to satisfied demand. As expected the
companys has started selling 5 lakh plus units from this month. In this financial
year the company bought Honda Motor Corporations 26% for Rs. 3,841.83 crore.
During this fiscal, the company has launched seven new models including
variants and refreshes, across various segments.
Summary
The Indian two wheeler industrys growth rate remains intact. The period April
2010 to March 2011 has witnessed growth of 26.76% over the same period last
year. More than 13.25 million units of two wheelers sold during the period of
April 2010 to March 2011 compared to 10.45 million units in the same period last
year.

39
Hero Honda the market leader is continuously posting double digit growth after
Diwali. It has done 5.4 million units sales in the current financial year. Bajaj Auto
the second largest manufacturer of two wheelers has sold close to 3.4 million
units in the current financial year.
TVS Motors has sold more than 2.01 million units whereas HMSI sales stood at
1.66 million units during April 2010 to March 2011 period. Yamaha India, Suzuki
Motorcycle and Mahindra two wheelers sold 0.37 million, 0.28 million and 0.16
million units respectively during the period of April 2010 to March 2010. Going
ahead we will continuously have double digit growth in two wheeler industry
despite fuel price hike and rising price of two wheelers as there are several new
product launches in pipeline for next 6 month. But the growth rate will come
down in next financial year and upcoming months.
Last year was the first-ever calendar year when the company's monthly sales
crossed the 3-lakh mark in each of the 12 months.

HIGHLIGHTS OF HERO HONDA FOR THE PAST 3 YEARS:

Highlights of Q1, FY08-09

Total sales for Q1 stands at 8,94,244 units, growth of 11 per cent

Near 55 per cent share in domestic motorcycle market

New manufacturing plant at Haridwar, Uttarakhand, starts production

Total turnover Rs 2890 crores, growth of 16 per cent

Net profit after tax at Rs 273 crores, growth of 44 per cent

EBIDTA margin for the quarter 11.99 per cent

40
Highlights of Q2, FY'08-09

Total turnover (Net sales & Other Operating income) Rs 3202 crores,
growth of 35.6 per cent

Net profit after tax at Rs 306.30 crores, growth of 50 per cent

EBIDTA margin for the quarter 13.58 per cent

Total sales for Q2 stands at 9,72,095 units , growth of 28.5 per cent

Total sales for H1 stands at 18, 66,349, growth of 19.7 per cent

Over 55 per cent share in domestic motorcycle market

Launches first-of-its kind music video to celebrate 25 years of Hero

Honda

Highlights of Q3, FY'08-09

Corporate Performance:

Total turnover (Net sales & Other Operating income) Rs 2881.27 crores,
growth of 4.77 per cent

Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent

EBIDTA margin for the quarter 14.47 per cent, up from 13.58 per cent in
previous quarter (July-September08)

Financial Results for Q4, FY'08-09

Total sales for Q4 stands at 9,97,855 units, growth of 13 per cent, three
times that of the industry growth during the period

Total turnover (Net Sales & Operating Income) Rs.3422.52 crores, growth
of 22.24 per cent

Net profit after tax at Rs 402.17 crores, growth of 34.64 per cent

41

EBIDTA margin for the quarter 16.04 per cent

Financial Results for FY'09

Total unit sales of 37.22 lakh two-wheelers, growth of 12 per cent, more
than double that of the industry growth during the period

Total turnover (Net Sales & Operating Income) of Rs. 12356.88 crores

Net profit after tax at Rs. 1281.76 crores

Dividend of 1000 per cent

EBIDTA margin for the year 14.16 per cent

EPS of Rs. 64.19/-

Highlights of Q1, FY'09-10

Total turnover (Net sales & Other Operating income) Rs. 3822.44 crores,
growth of 34 per cent

Net profit after tax at Rs. 500.11 crores, growth of 83 per cent

EBIDTA margin for the quarter 17 per cent

Total sales for Q1 stands at 11,18,987 units, growth of 25 per cent

Over 59 per cent share in domestic motorcycle market

Highlights of Q2, FY'09-10

Total turnover (Net sales & Other Operating income) Rs. 4059.44 crores,
growth of 26.8 per cent

Net profit after tax at Rs. 597.14 crores, growth of 94.9 per cent

EBIDTA margin for the quarter 18.33 per cent

Total sales for Q2 stands at 11,83,235 units, growth of 21.7 per cent

42

Over 59 per cent share in domestic motorcycle market

Highlights of Q3, FY'09-10

Total turnover (Net sales & Other Operating income) 3827.03 crores,
growth of 32.82 per cent

Net profit after tax at Rs. 535.77 crores, growth of 78.34 per cent

EBIDTA margin for the quarter 17.27 per cent

Total sales for Q3 stands at 11,11,372 units, growth of 29.56 per cent

Third consecutive quarter with more than a million units in sales

Financial Results for Q4, FY10

Total sales for Q4 stands at 11,86,536 units, growth of 18.9 per cent

Total turnover (Net sales and other operating income) Rs. 4122.32 crores,
growth of

20.2 per cent

Net profit after tax at Rs. 598.8 crores, growth of 48.9 per cent

EBIDTA margin for the quarter 17.2 per cent

Financial Results for FY10

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total turnover (Net sales and other operating income) of Rs. 15860.51
Crores, growth of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

43

Final dividend of 1500% or Rs. 30 per share on face value of each share of
Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent

Highlights of Q1, FY10-11

Total cumulative sales for Q1 FY10-11 stands at 12,34,039 units, growth

of 10 per cent

Total turnover (Net Sales & Other Operating income) Rs 4296.61crores

Net profit after tax at Rs. 491.69 crores

EBIDTA margin for the quarter 14 per cent

Fifth consecutive quarter of million-plus unit sales

Highlights of Q2, FY10-11

Total cumulative sales for Q2 FY10-11 stands at 12,85,944 units, growth

of 9 per cent

25lakh plus unit sales in H1 of FY11, growth of 9.4 per cent

Total turnover (Net Sales & Other Operating income) Rs 4551.95 crores

Net profit after tax at Rs. 505.60 crores

EBIDTA margin for the quarter 13.36 per cent

Launches the all-new Splendor Pro and the New Super Splendor

HERO HONDA REPORTS TURNOVER OF RS. 5161.66 CRORE FOR Q3 IN

FY11

44

PBT STANDS AT RS 508.03 CRORE & PAT STANDS AT RS. 429.00

CRORE

EBIDTA MARGIN FOR THE QUARTER AT 11.17 PER CENT

TOTAL SALES FOR Q3 FY11 STANDS AT 14,28,030 UNITS,

GROWTH OF 28.49PER CENT

SEVENTH CONSECUTIVE QUARTER WITH MORE THAN A

MILLION UNITS IN SALES.

Impact of promotional tools on sales/ (A case study of Hero Honda

bikes at SRI SRI SRI Automobiles).
QUESTIONAIRE
Dear respondent,
Please share your views on the following questions. This is part of
project of my M.B.A programme. The information provided by you will be
kept confidential.

45
NAME:

PROFESSION:

PLACE:

MOBILE NO:

1) Which age range do you fall into?

a) 18-25
b) 26-35
c) 36-45
d) 45 and above

2) What kind of advertising do you find to be the most powerful?

a) Print media
b) Electronic media
( )
c) Hoardings
d) Specify if any other.
3) Do you think advertising influences you?
a) Less than others
b) More than others
c) About the same as others

4) Do you think advertising of Hero Honda bikes makes you aware of the
bike?
a) Yes
( )
b) No
If (yes/no) please specify..

5) Do you think advertising shows impact on sales?

a) Yes
( )
b) No
If (yes/no) please specify..
6) Which model bike do you own?
a) Passion pro
b) Splendor plus
c) Hunk

46
d) Cd-deluxe
7) What made you to opt for Hero Honda bike?
a) Advertisements
b) References
c) Self-interest
d) Others

8) From the below, mention the source you have gathered

the details about the bike.
( )
a) Magazines
b) Broachers
c) Exhibitions
d) Others
If others specify
9) Which promotion tool do you think will give more sales?
a) Price offs
( )
b) Discounts
c) Trade shows
d) Warranties
10) Are promotional activities necessary for selling a bike?
a) Yes
b) no
( )

11) Which promotion tool made you to purchase the bike?

a) Coupons
( )
b) Price offs
c) Warranties
d) Test drives
e) exchange
12) Is it mandatory for you to have a test drive before purchasing?
a) Yes
b) no
( )
13) Do social media help in promoting Hero Honda, like?

47
a) Face book
b) Twitter
c) Others

14) From the below mention the effective promotional strategies?

a) Marketing through articles on the net
( )
b) Product review promotion
15) Does your purchase decision changes if dealer doesnt
give any offer like free insurance.
a) Yes
b) no
( )
If (yes) specify.

DATE:

(SIGNATURE)

THANK YOU

Impact of promotional tools on sales/ (A case study on

Hero Honda bikes at SRI SRI SRI Automobiles).
PIE- CHART REPRESENTATION

48

1) Which age range do you fall into?

45 and
above
6%
36-45
18%

15-26
44%

15-26
26-35
36-45
45 and above

26-35
32%

INTERPRETATION:
The above pie-chart represents that the customers of age 15-26 are more in
number than the other age groups.

49
2) What kind of advertising do you find
is the most powerful?

Others

24%

print
media
12%
print media

hoarding
s
4%

electronic media
hoardings
Others

electronic
media
60%

INTERPRETATION:
From the above representation, it is understood that advertising through electronic
media is most powerful.

50

3) Do you think advertising influences

you ?
about the
same as
others
12%

less than
others
34%

less than others

more than others
about the same as
others

more than
others
54%

INTERPRETATION:
Here, it represents that advertising influence on customers is more .

51

INTERPRETATION:
Advertising makes 78% of the customers aware of Hero Honda bikes, that means
the impact of advertising is more.

52

INTERPRETATION:
Maximum number of respondents (i.e.66%) says that there is impact on sales due
to advertising. And the remaining 34% say that there is no impact on sales.

53

INTERPRETATION:
Most of the customers (i.e.66%) own splender plus, 32% of the customers own
passion plus. And the remaining % the other bikes.

54

INTERPRETATION:
Out of 100, 52% of the customers purchased Hero Honda bikes of their self
interest, 30% of the customers due to references and 18% by seeing
advertisements.

55

8) From the below mention the source

you have gathered the details of the
bike?
others
28%

magazines
28%

magazines
brouchers
exhibitions
others

exhibitions
23%

brouchers
21%

INTERPRETATION:
28% of the customers gathered the details of Hero Honda bike through
magazines. 23% of the customers through brouchers, 21% of the customer
by attending exhibitions, and the remaining 28% of the customers through
other sources

56

INTERPRETATION:
The above pie-chart represents that the sales will be more if warranties are given.
the % of customers who opt for warranties is 38%.and for discounts is 32%, for
price offs 24% and trade shows 6%.

57

INTERPRETATION:
Maximum number of respondents says that promotional activities are necessary
for selling a bike. i.e. (84%).

58

INTERPRETATION:
54% of the customers purchased their bikes because of only coupons.
22% of the customers, of warranties
12% of the customers, of price offs
8% of the customers have taken a test drive and
4% of the customers because of exchange offer provided by the dealers.

59

INTERPRETATION:
Most of the people go for a test drive before purchasing a bike.
In this study 70% say yes and 30% of the customers say no.

60

INTERPRETATION:
There is no much impact of social media in promoting a bike. Most of the
customers are influenced by their friends .

61

14) From the below mention the effective

promotional strategies?
marketing
through
articles on the
net
10%
marketing through
articles on the net
product review promotion

product
review
promotion
90%
INTERPRETATION:
Product review promotion is the effective promotional strategy as 90% of the
respondents gave a positive note on it.

62

INTERPRETATION:
82% of the customers say that the purchase decision wont change if the
dealer doesnt give any offer and the remaining 18% shows that the purchase
decision changes.

63

SURVEY FINDINGS:
The consumer prefers Hero Honda in terms of quality and reliability. Hero Honda
enjoys a very strong brand image and brand loyalty. But the company should not
get complacent as a better product from the competitor will dilute the companys
brand image. It was found that only a small number of consumers came to the
dealers due to its sales promotion. This indicates that there is a scope for
improvement in sales promotion other than free gifts and discounts as it was not
an attractive proposition for their buying decision.
Customers only stated that promotional activities bring an impact on sales but
most of them are not much influenced by the promotional activities to buy a bike.
Most of the consumers go for the Hero Honda bikes because of its safe design.
Hero Honda technology is very innovative so customers like to take it.
A very high segment of youth goes for the name and goodwill of the Hero
Honda.

64

SUGGESTIONS:
The company should provide free services to its customers in comparison to its
competitors.
More financing option should be provided such as loans and credits.
The company should provide more customer value.
Follow up should be increased.
Effort should be done for developing the concept of good relationship with
consumers.
Dealers should encourage its customers by giving discount, providing 0%
interest loan schemes, prices, coupons etc.

65

BIBLIOGRAPHY
I have used the following source for finding the data
http: www.herohonda.com
http: www.google.com
http: www.wikipedia.org
Philip Kotler, Marketing Management,
Literature from the web site
http://www.herohonda.advertisment.pro.coreproduct.org