Project report

on
Attitude
of
Rural
customers
towards Hero Honda Bikes
Submitted to
Dr Minali Mehra

Submitted by
Karandeep singh
Roll no - 1521063

INTRODUCTION
India is a big country
with a large population that is more than 1
nd
crore and is in 2 number in the world. In our country over 70%
of the total population live in villages. There are states like U.P.,
M.P., Bihar, Rajasthan and Orissa where rural population varies
from 80 to 90 %. With the time the lifestyles of the rural people
are improved.
The surface transport is one of the area where vast
improvements can be noticed with improved roads, transportation
and other means. Small and big means of transport helps rural
people or consumer to purchase his goods and services beyond his
village boundaries. The Two-Wheeler industry is one of the largest
industries in the automobile sector with a size of Rs.1,00,000
million.
The Indian two- wheeler market, there are three types of
vehicles Motorcycles, Scooters and Mopeds. Among three of
these segments , major growth have been seen in the motorcycles
segment over the last four to five years. The main reason can be
the bad roads of villages. The motorcycle has now become
one most popular mode of transportation. Most of the rural
areas do not have good and decent road , for these types of roads
motorcycles are a good two wheeler and it is a easy mode of
transportation among the Indian rural families because of it

is cost effective and economical.

There are a many players in the Indian motorcycles
market as Hero Honda motor limited, Bajaj auto
limited, TVS motor company limited. The
other players of the two wheeler industry as the
kinetic motor company limited,kinetic engineering
limited, LML, Yamaha motors India limited,
MajesticAuto limited, Royal Enfield, and Hero
Honda motorcycle and scooter private limited.There
are a various models of the HERO HONDA available .
CD 100
Hero Honda sleek
Splendor
Splendor plus
CBZ
Passion
Passion plus
Karizma
Super splendor
In current scenario product are designed to meet and
exceed the expectations of the consumer. But understanding
attitude of rural consumer is not simple. Rural customers
are now having a lot of offers from various companies.
There is a need to understand the rural markets in terms of
buyer behavior, attitude, beliefs of rural people towards the
Hero Honda Bikes.

Review of Literature
CONSUMER BEHAVIOUR Consumer behaviour reflects the totality of consumers
decisions with respect to the acquisition, consumption and
disposition of goods, services, activities and ideas by
humandecision making units. (Hoyer, Macinnis and Pinaki Das
Gupta, 2008). Consumer behaviour means more than just how a
person buys tangible products such as bath soap, digital
music players and automobiles. It also includes consumers
use of services, activities and ideas such as going to the
doctor, visiting a theme park, etc.
RURAL CONSUMER BUYING BEHAVIOUR -

Rural buyer behaviour refers to the buying behaviour of

final consumers individuals and households who buy
goods and services for personal consumption. All these
final consumers make up the consumer market.The rural
consumer is likely to exhibit different purchase behaviour
as compared to his urban areas. This is basically due to the
unique characteristics of rural markets. The compositionof
Indian rural market is probably the much more complex
than the whole market.

Influence of consumer behaviour and its implications

http://www.scribd.com/doc/51202931/11/RURAL-CONSUMER-BUYINGBEHAVIOUR
- Browsed on 25th March, 2012

Sarwade W.K in this research on Emerging dimensions of

buyers behaviour in rural area studied the marketing and
consumer behaviour aspects such as place of
buying,frequency of purchase, brand decisions, buying motives,
shopping behaviour and brand choice of buyers with reference to
selected products in rural area. The study revealed that, most of
the ruralconsumers are not aware of the product. The
corporate image is playing a very significant role in
popularizing the product in rural area.
Hero Honda, the worlds largest manufacturer of twowheelers, generates over 40 percent of sales from rural
areas.
http://www.reutersmarketlight.com/images/Accenture%20Masters%20of%20Rural
%20Market%20-%20the%20Hallmarks%20of%20High%20Performance.pdf - Browsed
on 25th March, 2012

RESEARCH DESIGN

The research undertaken was descriptive research in nature.

The emphasis was made to understand the nature and the
expectations of the customers.

OBJECTIVE OF THE STUDY: To analyze consumer perception towards Hero Honda

motor bikes in rural areas.
To study the position of Hero Honda motor bikes in
rural areas.
To test the usage of the product.
PROBLEM FORMULATION: Two wheeler market penetration in rural and urban
segment.
Which bike people prefer to purchase.
Estimation size of rural market in 2 wheelers.
Growth sales of Hero Honda bikes.
Sales of HERO HONDA Bikes in rural areas compare
to urban areas.

RESEARCH
METHODOLOGY
Meaning of ResearchResearch is a common parlance refers to a search for
knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific
topic. In fact, research is an art of scientific investigation.
Redman and Mory defines research as a Systematized
efforts to gain new knowledge. Some people consider
research as a movement, a movement to from the known to
unknown. It is actually a voyage of discovery.
MethodologyIn planning and designing a specific research project, it is
necessary to anticipate all the steps that must
be undertaken if the project is to be successful in
collecting valid and reliable information.
RESEARCH APPROACHThere are two basic approaches to research. Quantitative
and qualitative.
SOURCES OF DATAPrimary data:Primary data consists of original information for the
specific purpose at hand. It is first hand information for
the direct users of respondents. The tools used to

collect the data may vary depend can be collected through

various methods like questionnaire, direct personal
interview. We did not use this method.
Secondary data:Secondary data is the data which is already been
collected and assembled. This data is available with
the companies or firms and it can be collected from
newspapers, periodicals, magazines, websites etc.
DATA COLLECTION TOOL:To conduct a survey, we have selected a structured
questionnaire as an instruction for gathering valuable
information from the customers. Questionnaire consisting
of questions and checklist questions to check the customer
feedback.
QUE 1. What is your age?
AGE
NUMBER
OF PERCENTAGE
RESPONDENT
18-25
22
22
25-35
25
25
35-50
18
18
Above 50
35
35
Total
100
100
QUE 2. What is your occupation?
OCCUPATION
NO
OF PERCENTAGE
RESPONDENT
student
12
12
Labour
25
25
Businessman
30
30
Selfbusiness
33
33
Total
100
100
QUE 3. What is you maximum education?
EDUCATION
NO
OF PERCENTAGE
RESPONDENT
Below S.S.C
15
15
S.S.C
45
45
H.S.C
33
33
Graduate
5
5
Post Graduate
2
2
Total
100
100

QUE 4. Do you have own bike?

Answer
No of respondent
Yes
45
No
55
Total

Percentage
45
55

QUE 5. If yes, which companys bike you have?

Company
No of respondent
Percentage
Hero Honda
35
35
Bajaj
40
40
Yamaha
5
5
Suzuki
5
5
Others
15
15
QUE 6. Whom you concern for advice before making any
purchase decision?
Advicer
No of respondent
Percentage
Family
48
48
Friends
22
22
Older villagers
15
15
Dont take any 8
8
advice
Others
7
7
QUE 7. Are you satisfied with your bike?
Percentage
Company
No of respondent
Yes
No
Total

78
22
100

78
22
100

QUE 8. If no, then what is the reason of it?

QUE 9. If you get a second chance to purchase a new bike,
which bike you would like to buy?
Company
No of respondent
Percentage
Hero Honda
36
36
Bajaj
42
42
Yamaha
5
5
Suzuki
5
5

Others

12

12

QUE.10
Did you getting after sale services after
purchasing your bike?
Answers
No of respondent
Percentage
YES
89
89
NO
11
11
TOTAL
100
100
QUE.11. What do you think about HERO HONDA
BIKES , Is it good?
Answers
No of respondent
Percentage
Strongly disagree
3
3
disagree
7
7
neutral
20
20
agree
51
51
Strongly agree
19
19
STATISTICAL TECHNIQUES
Bar Diagrams
Pie-Chart
STATISTICAL TOOL
Statistical software like Microsoft Excel
SCOPE OF THE STUDY:The study helps in having an attitude of rural customers
towards Hero Honda Bikes. As the product had a good
brand image in the market, this study will help to know that
it is also having a good image in the mind of rural
consumers or not.

ANALYSIS
&
INTERPRETATION
OF
DATA
Two wheeler market penetration in rural and
urban segment.
ANALYSISMajor portion of India population lives in rural/semi urban
area. It is the area where market penetration of two
wheelers is just 10% compared to 25% of urban area.
Estimated size of the rural market

ANALYSIS:As we can see size of rural market of 2/4 wheelers is 8000

crores. Which is increased from last few years.
Which bike people prefer to purchase.
Bike
ANALYSIS:From the above data we can see the majority of bike which
people of India prefer most in the survey were Bajaj bikes
with 45% and then Hero Honda with 40%.

 Growth sales of Hero Honda bikes.

Particular 2005-06 2006-07 2007-08 2008-09 2009-10
s
Sales (nos.) 3000751 3336756 3337142 3722000 4600130
Growth in 14.5
11.2
.01
11.53
23.59
Sales (nos.)
(%)

ANALYSIS:As we can see with this data, sales of Hero Honda bikes are
increasing rapidly. Now a days major contribution in the
increase of sales is from rural areas.
Sales of HERO HONDA Bikes in rural areas
compare to urban areas.

ANALYSIS:According to above data, today Hero Hondas 45% sales

come through rural segment which was around 30% few
years back.

FINDINGS

After analysing these data the following were found in the

study.

 Hero Honda motor cycles were the market leader in

the Two Wheeler segment. But they are losing their
grip in the market. Now Customer prefer bajaj bikes
more than Hero Honda.
Two wheeler rural segment is very less than urban.
Even large no. of population lives in rural areas in
India.
Growth sales of Hero Honda bikes is increasing
rapidly.
Today Hero Hondas 45% sales come through rural
segment. Which was 15% more than few years back.
Rural segment prefers to buy in cash and it is more
loyal to its brand.
The Rural segment is also showing high disposable
income growth due to increase prices of vegetables
and grains.
The company has always targeted urban sector of
Indian population. But in the rural sector escorts,
Rajdoot enjoys a great market share. So, therefore
Hero Honda should target this market to increase its
market share.

CONCLUSION

Two wheeler automobile sector is the back bone of the

automobile industry.Hero Honda is one of leading two
wheeler producer in the world and a major player in the
Indian Market. They were the producer of largest selling
motor cycle of the world, i.e, Hero Honda Splendor, it has
its own importance still in the market. But from the past
two or three years Hero Honda suffered a slight loss in its
market share due to Bajaj. The introduction of Bajaj Pulsar
is one of the biggest threat to Hero Honda.
But rural consumer attitude towards Hero Honda
motorcycles is very good. It has created a very good image
for it self by providing low maintenance, fuel efficient,
good looking models along with efficient after sales

services. Rural consumer find it affordable and adaptable

according to rural environment.
To help win sales among Indias more than 740 million
rural residents, Hero Honda has set up health-care
initiatives and services to guide people in getting driving
licenses. Coupled with motorcycle tax cuts and economic
growth, the programs helped Hero Honda boost sales 24
percent in the past 11 months.
Simultaneously, Hero Honda is expanding its rural reach in
India by adding about 500 more dealerships, service centers
and other outlets across the country. The company currently
has more than 4,000 facilities nationwide, including about
700 dealers.

BIBLIOGRAPHY

Websites referredhttp://www.scribd.com
http://bikeadvice.in
http://www.heromotocorp.com
http://www.indiainfoline.com
http://www.bloomberg.com/apps/news?
pid=newsarchive&sid=aVNx2O2Jm29A