1

A
Summer Training Project Report

ON

CUSTOMER SATISFACTION & BUYING

BEHAVIOUR OF HERO MOTOCORP

Submitted for the Partial fulfillment of the Requirement of the Award of

Degree of Master of Business Administration
from

AKTU Technical University, Lucknow

(2015-2016)

Submitted to: Submitted By

Dr sandeep kumar Amit singh
[Director] MBA III Sem
ROLL NO: 1507270006

IIMT MANAGEMENT COLLEGE, MEERUT

 DECLARATION

I, Amit singh hereby declare that the work, which is being

presented in the project entitled Customers Satisfaction & Buying

Behavior of Hero Motocorp in fulfillment of the requirement for

the award of the degree Masters In Business Administration (MBA).

In the year 2013-2015 is an authentic record of my own work carried

out under the guidance of Mr brijesh kumar(Faculty). The matter

embodied in this project has not been submitted by me for the award

of any other degree.

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 ACKNOWLEDGEMENT

A good project work requires sound knowledge of the subject

concerned and skilled to make proper use of this knowledge. I am very

grateful to all who equipped us with the right frame of mind to make us still

more respective to such knowledge and skill.

I would like to thank god for everything. I would like to thank my parents

for constantly encouraging to work and for providing complete support,

whenever I need it.

I am greatly indebted to Mr. Sujit Mishra (Marketing Manager) my

project guide for availing us of her competent guidance under which I was

able to accomplish my project work successfully.

I also express my gratitude to Dr. Sandeep Kumar (HOD) IIMT

Management College, Meerut who have been instrumental in making this

report useful one.

I would also like to thank my friends who directly or indirectly help in

completing this dissertation. I am also sincerely thankful to the entire

persons who involve in this project work.

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 PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an

essence taking a view of the whole business organization and its ultimate

objective concern for marketing must penetrate all areas of the enterprise.

Market survey in todays competitive world is a must for every organization.

This project is a study of market potential of Hero Honda. The rational

behind this particular study is to find out the present market scenario of various

brands & to find out the corporate need and perception. It was a pleasurable

experience to conduct a research on behalf of Hero Honda pertaining to the

study of the Automobile Sector.

To carry out this research a sample study was pursued where the target

was made to the people of Samastipur region. Various statistical and analytical

tools and techniques are applied to ascertain and depict the present scenario.

Conclusion and there by recommendation has been arrived at by proper

and justified interpretation of the result derived from the above said analytical

tools and techniques.

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 Mission Statament

Poor firms ignore their competitors, average firms copy their competitors,

winning firms lead their competitors.

Philip Kotler

Every company wants itself to differentiate itself from its competitors and

the only tool with which the company give itself and its product a different

personality than its competitors to its target customers, shareholders and

stakeholders is MARKETING.

HERO HONDA is a brand name in automobile Industry. Its prime competitors

are BAJAJ & TVS but at the same time having a low number of CUSTOMER

in COMPITITIVE market . In this competitive market when every company in

the AUTOMOBILE is targeting the expansion markets so as to increase the

reach as well as the sales volume. HERO HONDA is also set to target the

expansion of DISTRIBUTOR for the same reason.

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The project intends to do study & development of marketing channels HERO

MOTO CORP . with reference to DISTRIBUTOR expansion in the districts of

Samastipur. This report carries a introduction of the company profile, detail of

the methodology followed detailed data analysis and the results so obtained

with the variety of graphs along with the suggestions given.

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 CONTENTS

INTRODUCTION 8-40

OBJECTIVE& RESEARCH METHODOLOGY 41-49

DATA COLLECTION 50-87

DATA ANALYSIS 88-100

FINDINGS & RECOMMENDATION 101-102

SWOT ANALYSIS 103

LIMITATIONS 104

ANNEXURE (Questionnaire) 105-106

BIBLIOGRAPHY 107

Introduction

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 Company Profile Hero MotoCorp

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-

wheeler manufacturing company in India and also, the 'World No.1' two-

wheeler company in terms of unit volume sales in a calendar year. Hero

MotoCorp Ltd. continues to maintain this position till date.

Vision

The story of Hero Honda began with a simple vision - the vision of a mobile

and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's

new identity, reflects its commitment towards providing world class mobility

solutions with renewed focus on expanding company's footprint in the global

arena.

Mision

Hero MotoCorp's mission is to become a global enterprise fulfilling its

customers' needs and aspirations for mobility, setting benchmarks in technology,

styling and quality so that it converts its customers into its brand advocates. The

company will provide an engaging environment for its people to perform to

their true potential. It will continue its focus on value creation and enduring

relationships with its partners.

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Strategy

Hero MotoCorp's key strategies are to build a robust product portfolio across

categories, explore growth opportunities globally, continuously improve its

operational efficiency, aggressively expand its reach to customers, continue to

invest in brand building activities and ensure customer and shareholder delight.

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 HISTORY OF HERO HONDA _

The success of the Hero Group lies in the determination and foresight of

the Munjal brothers, who shared their vision with their workers and led the

Group to a position where its name has become synonymous with top-quality

two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship company

Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and

Mr. O. P. Munjal continue to carry the torch and are actively involved in the

day-to-day operations of the Hero Group.

The saga is being continued with the same zeal by the second and third

generations of the family and by the large working force of the Hero Group. The

spirit of enterprise which dominates the progress of the Group is characteristic

of the land where it all began - the City of Ludhiana, in Punjab - home to some

of Indias finest workers and entrepreneurs.

The Hero Group is a thriving example of three generations of a family working

and striving together to ensure quality, satisfaction and extensive growth.

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Milestones

Hero's success saga contains an element of spirit and enterprise; of achievement

through grit and determination, coupled with vision and meticulous planning.

1956 Hero Cycles Limited is established.

1961 Rock man Cycles Industries Limited established, which

is today the largest manufacturer of bicycle chains and

hubs.

1963 It pioneered bicycle exports from India - a foray into

the international market.

1971 Highway Cycles was set up to meet the demands of

Hero Cycles. It is today the largest manufacturer of

single speed and multi-speed freewheels.

1975

Hero Cycles Limited became the largest manufacturer

of bicycles in India.

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1978
Majestic Auto Limited was formed and the Hero

Majestic Moped was introduced.

1981 Munjal Castings established.

1984 Hero Honda Motors Limited established in joint venture

with Honda Motors of Japan, to manufacture

motorcycles.

1985 Munjal Showa Limited established to manufacture

shock absorbers and struts and is today among the top

two shock absorber manufacturing companies in India.

1985 The 100 cc Hero Honda Motorcycle arrived and by

1988 was the No. 1 among all motorcycles in India.

1986 Hero Cycles Limited entered the Guinness Book of

Records as the largest bicycle manufacturer in the

World.

1987 Hero Motors, a division of Majestic Auto Limited set up

in collaboration with Steer Daimler Puch of Austria.

1987 Gujarat Cycles Limited, now known as Munjal Auto

Industries Limited was established to manufacture and

export state-of-the-art bicycles and allied products in

its fully automated plant at Waghodia.

1987 Sunbeam Auto Limited, earlier a unit of Highway

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 Cycles Limited, established as an ancillary to Hero

Honda. It is the largest die casting plant in India.

1988 Introduced "Hero Puch" from Hero Motors Limited. This

revolutionary machine immediately set new records of

petrol efficiency and usable power in 50 - 65 cc

machines.

1990 Hero Cold Rolling Division established and is one of the

most modern steel cold rolling plants.

1991 Hero Honda receives National Productivity Council's

Award.

1991 Hero Honda receives the Economic Times - Harvard

Business School Association Award against 200

contenders.

1992 Munjal Showa Limited receives National Safety Award.

1993 Hero Exports established as the International Trading

Division for Group and non-Group products.

1993 Hero Motors becomes Indias largest exporter of two

wheelers

1995 Hero Corporate Services Limited as the service

segment for the Hero Group Companies, ancillaries,

suppliers, dealers and other associates.

1996 - Hero Winner, a large-wheeled scooter was introduced

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 by Hero Motors Limited with a choice of 50 cc and 75

cc engines.

1996 Munjal Showa Limited receives British Council's

National Safety Award.

1998 - Hero Briggs and Stratton Auto Private Limited was

set up to produce 4-stroke two-wheeler engines in

various cubic capacities.

1998 Munjal Auto Components established to manufacture

gear shafts and gear blanks for motorcycles.

2000 The Hero Group diversifies into IT and IT enabled

services through its service segment - Hero Corporate

Services Limited.

2000- Hero Honda emerges as the market leader in

2001 motorcycles with sales of over a million motorcycles

and a strong market share of 47%.

2001 Hero Global Design established to offer engineering

services in CAD/CAM/CAE related to New Product

Development, Design, Engineering and Manufacturing.

2002 Hero Cycles ties up with National Bicycle Industries,

part of Matsushita Group to manufacture high-end

bicycles.

2002 Fastener World Established.

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2002 Easy Bill Established to offer utility bill collection &

retail services.

2003 Tie up with Live bridge Inc., USA.

2004 Tie up with Bombardier - Rot ax GmbH for scooter

engines.

2004 Tie up with Aprilia Scooters, Italy.

2004 Hero Honda continues as the World's largest

manufacturer of two-wheelers with annual sales

volume of 2.07 million motorcycles and a market share

of 48%.

2005 HeroITES strengthen its relationship with ACS, USA,

USD 5.0 billion market cap and Fortune 500 company.

2006 Hero Group celebrates Golden Jubilee year since

inception. It was commemorated by sales of over

2007 New 'Splendor NXG' & 'CD Deluxe' launched

2008 Hero Honda Haridwar Plant inauguration

2009 Crosses the landmark figure of 4 million cumulative

sales in a single year

2010 New model Splendor Pro launched

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 New licensing arrangement signed between Hero and Honda (Hero

Honda is renamed as Hero)

Crosses the landmark figure of 5 million cumulative sales in a single

2011 year

Launch of new refreshed versions of Glamour, Glamour Fi, CBZ

Xtreme, Karizma

Migration of all products to Brand Hero

Launch of Impulse, Maestro and Ignitor

2012
Strategic partnership with Erik Buell Racing (EBR) of USA

Debut in the AMA Superbike Racing in the US

Neemrana Plant Foundation Stone laid

2013 50 Million cumulative 2 wheelers production

Global Parts Centre Foundation Stone laid

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OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

The Automobile sector is one of the fastest growing manufacturing

sectors in India.

In the 90s the industry witnessed an average growth rate of above 20

percent.

Indian Automobile Industry is characterized by a very high percentage

(75 per cent) of two wheeler production, ranking second only to Taiwan.

The world leaders in the sector are evincing keen interest in establishing

manufacturing facilities for manufacturing and assembling components.

A politically stable and vibrant State, Andhra Pradesh is centrally located

with the support of seaports, international airports, assured and reliable

power supply, abundant water, broad base of auto component

manufacturers, highly trained, skilled and disciplined manpower and is

therefore, the preferred location for Automobile industries.

The interest of the state has been duly noted by Global Auto Majors, who

have indicated their interest to consider Andhra pradesh for establishing

manufacturing facility.

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 The Government of Andhra Pradesh invites leaders in the industry to set

up manufacturing facilities to manufacture vehicles or vehicle

components in the State. The ideal places to locate companies in the Auto

Sector are the Hyderabad-Zaheerabad, Visakhapatnam-Kakinada,

Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur corridors.

The Government is also formulating an Auto Policy, which would give a

proper direction to the growth of the sector.

There are more than 20 auto component manufacturing companies in the

State, manufacturing components such as grey-iron castings, precision

aluminum castings, leaf springs, oils and lubricants, diesel fuel injection

equipment, electronics and auto electronics and auto electrical, front

axles, gears, forging, machined components, pressed metal components,

pistons, cylinder liners, nozzles, delivery valves, starter motors,

alternators, electronic regulators, high pressure die castings, clutch

covers, fuel filters ,etc.

Most of these components are presently being supplied to Hero Honda,

TVS Suzuki, Escorts Yamaha, Bajaj and others. Amaron Batteries are

manufactured in Chittoor district. Around 119 components manufacturers

have been certified for ISO 9000 quality standards and seven companies

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 achieved the QS 9000 quality standard set by government and motors

association.

ABOUT HERO HONDA

The joint venture between India's Hero Group and Honda Motor Company,

Japan has not only created the world's single largest two wheeler company but

also one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove

that it was possible to drive a vehicle without polluting the roads. The company

introduced new generation motorcycles that set industry benchmarks for fuel

thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign

captured the imagination of commuters across India , and Hero Honda sold

millions of bikes purely on the commitment of increased mileage.

Over 19 million Hero Honda two wheelers tread Indian roads today. These are

almost as many as the number of people in Finland , Ireland and Sweden put

together!

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 Hero Honda has consistently grown at double digits since inception; and

today, every second motorcycle sold in the country is a Hero Honda. Every 30

seconds, someone in India buys Hero Honda's top -selling motorcycle -

Splendor.

This festive season, the company sold half a million two wheelers in a single

month-a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from two globally benchmarked

manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These

plants together are capable of churning out 3.9 million bikes per year. A third

state of the art manufacturing facility at Hardwar in Uttranchal will soon be

commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000

customer touch points. These comprise a mix of dealerships, service and spare

points, spare parts stockists and authorized representatives of dealers located

across different geographies.

Hero Honda values its relationship with customers. Its unique CRM

initiative - Hero Honda Passport Program, one of the largest programs of this

kind in the world, has over 3 million members on its roster. The program has not

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only helped Hero Honda understand its customers and deliver value at different

price points, but has also created a loyal community of brand ambassadors.

As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly

points out, "We pioneered Indias motorcycle industry, and it's our

responsibility now to take the industry to the next level. We'll do all it takes

to reach there.''

Hero Honda has a reputation of being the most fuel-efficient and the

largest selling Indian motorcycle. Its commitment of providing the customer

with excellence is self-evident. A rich background of producing high value

products at a reasonable price led the world's largest manufacturer of

motorcycles to collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of

Japan and the Hero Group that resulted in the setting up of Hero Honda Motors

Ltd. A relationship so harmonious that Hero Honda has managed to achieve

indigenization of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish

itself as an intelligent purchase. Its unique features like fuel conservation, safety

riding courses and mobile workshops country. Helped the group reach in the

interiors of the Finance services helped facilitate purchase, as did an efficient

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dealer network across the country. Well-entrenched in the domestic market,

Hero

Honda Motors Ltd. turned its attention overseas, and exports have been steadily

on the rise.

Over the years, the Company has received its share of accolades, including the

National Productivity Council's Award (1990-91), and the Economic Times -

Harvard Business School Association of India Award, against 200 contenders.

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 The Legend of Hero Honda

VISION

What started out as a Joint Venture between Hero Group, the worlds

largest bicycle manufacturers and the Honda Motor Company of Japan, has

today become the Worlds single largest two wheeler Company. Coming into

existence on January 19, 1984, Hero Motors Limited gave India nothing less

than a revolution on two-wheels, made even more famous by the Fill it Shut

it Forget it campaign. Driven by the trust of over 5 million customers, the

Hero Honda product range today commands a market share of 48% making it a

veritable giant in the industry. Add to that technological excellence, an

expensive dealer network, and reliable after sales service, and you have one of

the most customer-friendly companies.

This is proved by the companys sales over the years:

Year Units
2003-04 17,78,392
2004-05 22,31,589
2005-06 26,84,786
2006-07 29,54,675
2007-08 33,36,756
2008-09 40,200,175
2009-10 46,00,130

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Customer satisfaction, a high quality product, the strength of Honda technology

and the Hero groups dynamism have developed HTML scale new frontiers and

exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing

Director, We will continue to make every effort required for the development

of the motorcycle industry, through new product development, technological

innovation, investment in equipment and facilities and through efficient

management.

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. This mission

is what drives

Hero Honda to new heights in excellence and helps the organization forge a

unique and mutually beneficial relationship with all its stake holders.

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Hero Honda is a world leader because of its excellent manpower, proven

management, extensive dealer network, efficient supply chain and world-class

products with cutting edge technology from Honda Motor Company, Japan. The

teamwork and commitment are manifested in the highest level of customer

satisfaction, and this goes a long way towards reinforcing its leadership status

HISTORICAL FACTS

1983

Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed

Shareholders Agreement signed.

1984

Company incorporated.

Technical collaboration signed.

Foundation stone lay.

1983 - shareholders agreements signed.

1985

First motorcycle "CD 100" rolled out.

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1987

Engine plant started.

1,00,000th Motorcycle produced.

1989

Sleek model introduced.

1991

5,00,000th motorcycle produced.

CD-SS model introduced.

Economic times Harward business school award for excellent

Governance to Hero Honda Motors Ltd.

1993

Hero group sponsors Hero cup five nations cricket tournament

1994

Splendor model introduced.

1,000,000th motorcycle produced

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1995

National Award for outstanding contribution to the development of Indian

small scale industry (NSIC Award presented by President of India)

The analyst award 1995 presented to Hero Honda Motors Ltd. on being

ranked 9th amongst the most investor rewarding companies in India.

1996

1000 motorcycle per day production started.

1998

15,00,000th motorcycle produced.

Street model introduced.

Hero sponsored 6th women world cup cricket tournament.

1999

20,00,000th motorcycle produced.

1st Hero Honda Master golf championship held at Samastipur.

30,00,000th motorcycle produced.

CBZ model introduced.

7th World Cup Cricket tournament sponsored at England.

Most admired business Baron CEO award conferred upon the

Chairman Brij Mohan Lal Munjal.

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2000

Passion and Joy" motorcycle launched.

One million motorcycles produced in one single year.

Winner of the review-2000-Asias leading companies award

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.

National productivity award for the best performance in automobile

and tractors.

Sir Jahangir Ghandy medal for industrial peace awarded to Brij Mohal

Lal by XLRI Jamshedpur.

New motorcycle model - "Passion" introduced.

One million production in one single year.

New motorcycle model - "Joy" introduced.

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 5,000,000th motorcycle produced.

2002

Declared company of the year by economic times business award.

Chairman Brij Mohan Lal awarded the entrepreneur of the year

award by Business standard.

New motorcycle model - "Ambition" introduced

New motorcycle model - "Dawn" introduced.

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan

Singh and Zaheer Khan as Brand Ambassadors

2004

Declared company of the year by economic times business award for

the second time.

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).

Karizma the sports segment bike launched.

New motorcycle model - "CD Dawn" introduced.

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 New motorcycle model - "Splendor +" introduced.

New motorcycle model - "Passion Plus" introduced.

2005

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.

2006

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.

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 New motorcycle model - "Glamour" introduced.

New motorcycle model - "Achiever" introduced.

First Scooter model from Hero Honda - "Pleasure" introduced.

2008

Hero Honda is the World No. 1 for the 5th year in a row

This all says about the golden past of the company and the company is

going on to the path of success.

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 KEY POLICIES OF THE HERO MOTOCORP

Environment Policy

We at Hero Motocorp are committed to demonstrate excellence in our

environmental performance on a continual basis, as an intrinsic element of our

corporate philosophy. To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our

business processes and practices with specific consideration to

substitution of hazardous chemicals, where viable and strengthen the

greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling

our environmental discharges through the principles of "alara" (as low as

reasonably achievable).

Institutionalise resource conservation, in particular, in the areas of oil,

water, electrical energy, paints and chemicals.

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 Enhance environmental awareness of our employees and dealers /

vendors, while promoting their involvement in ensuring sound

environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do,

particularly in our products and services which will meet and exceed customer's

growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility.

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Safety Policy

Hero Motocorp is committed to safety and health of its employees and

other persons who may be affected by its operations. We believe that the safe

work practices lead to better business performance, motivated work force and

higher productivity. We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and

contractors.

Continuous improvements in safety performance through precautions

besides participation and training of employees.

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 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are:

Table 1: Market Share of Two Wheeler Manufacturer

Manufacturer Products Market Share(%)

HERO Motorbikes 50% market share

MOTOCORP
BAJAJ AUTO Scooter+Motorbikes+Scooterate 28% market share

TVS Motorbikes+Scootrate 12% market share

YAMAHA Motorbikes 10% market share

According to the recent results company (Hero Honda) registered a sales

increased by 24.5% over the past years. Same month TVS also registered

increase of 45% while the other companies are not enjoying quiet good increase

in sales. While the whole industry registered an increase of about 17% only. So

in present

scenario the Hero MOTOCORP comes as the leader of whole automobile

segment while there is immense competition in industry to get the highest

market share.

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 BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly,

Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its

brand

ambassadors joining the add campaign together to promote Ambition. All of

these celebrities are the member of Indian cricket team and very much popular

in younger generation. In the last year with the launch of its new premium bike

Karizama Hero Honda signed its new brand ambassador who is a cine star and

is also very popular. He is Hritik Roshan.

SERVICE YOUR BIKE

Hero Motocorp has always taken a lead in terms of defining service

standards in two wheeler industry with an aim to provide "Total Customer

Satisfaction" for their valuable customers across the country and also

internationally. We are constantly endeavoring to improve the quality of

our service facilities at our Dealerships. The first and foremost step to

achieve this was creating Automated Workshops at our Authorized

Dealerships and Service Centers across the country.

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 AUTOMATED WORKSHOPS

Hero Motocorp has the largest chain of Automated Workshops providing

service to their valuable customers by using latest service technology.

Automated Workshops have standard layout, hydro electric motor cycle lifts,

dust free engine rooms and use pneumatic tools and equipment to ensure quality

repair in customers motorcycle. The workshop environment and usage of

pneumatic tools increases mechanics efficiency and their motivation to provide

quality service. The layouts have been standardized to ensure that there is a

transparency of service. The customers can view their motorcycle repair while

sitting comfortably watching TV or relaxing in the customer lounge. Workshop

Automation has become a mandatory service standard for all Hero Honda

Dealers and Service Centers.

TRAINING

The regular Technical Training Programmes for Dealers Workshop staff

to keep them updated and refreshed about the latest price technology, product

technical details as well as service and repair procedures to handle customers

motorcycle with utmost care as well as to provide them the service quality of

highest order is a focus area at Hero Motocorp. Hero Motocorp has six (06)

training centers across the country. There are 05 zonal training centers of Pune,

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Bangalore, Calcutta, Chennai and Samastipur to take care of technical training

requirements of dealers in each zone as well as local technicians. There is a

National Training Center at Dharuhera to take care of all advanced level

technical programmes for our dealers staff and our in house service engineers.

Hero Honda keeps an organizing Dealers Mechanics Contest at Zonal Level and

National Level to develop competitive spirit among mechanics as well as in the

process to update their skills and product knowledge.

CUSTOMER SERVICES

Hero Motocorp keeps on taking always-new initiatives to maintain its

leadership on service as well as enhance customer satisfaction level on an

ongoing basis. Some of the new initiatives related to customer service are as

follows: -

Service Advisors at Dealerships

Service Plus Scheme for customers

Pre Paid Reply Cards

Automated Mobile Service Workshops

Mega Millennium Camps

On the Job Training Programmes

Local Mechanics Training

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 There are many more initiatives, which we keep on taking along with our

dealers to keep our customers always in our mind on top priority.

SAFETY- "S4" CONCEPT (SALES, SERVICE, SPARE PARTS &

SAFETY)

Hero Motocorp is also launching very soon a novel concept and a very

major initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of

Hero Motocorp's motorcycle delivery process at the showroom. Customers shall

be educated on Safe Riding techniques through various audio visual aids. Safety

Instructors shall be imparting riding skills as well as education to the customers.

Dealers shall also conduct a major programme in their respective towns with the

association of local traffic police on a regular basis on safety education and

correct riding techniques.

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- 40 -
 OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in mind.

To study consumers perception for different products of Hero Motocorp.

To know why people buy Hero Motocorp and why some people prefer

other company.

To study the features of different products of Hero Motocorp that give a

good idea of various products and services offered by the company.

To understand the competitive environment in which the company is

operating and is desired to meet customer need and satisfaction.

To provide useful information to the company about the product features

of various competing companies.

METHODOLOGY

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 The methodology used in conducting the research work on HERO

Motocorp with major emphasis on its sales and marketing strategies involve the

following steps:

Why I have selected HERO Motocorp only?

I have selected Hero Motocorp because it is the company that is growing

day by day. It has maximum market share with comparison to its competitors.

And it is the company that gives highest sales and it is also the highest two-

wheeler manufacturer.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process.

Proper defining of the problem is a must for proceeding further with the

research process. The type of study to be carried out, the questions to be raised,

the sampling procedure to be followed, and the data to be collected, all depends

on a correct understanding of the problem. Also, by clearly focusing on the real

problem, the research job can be simplified and completed with the minimum

cost, effort and data.

Identified problem or the objectives of the research discussed in the report are:

1. DEVELOPING THE RESEARCH PLAN

- 42 -
 In this a plan was developed about how to collect the require information

i.e. whom to contact for gathering the relevant data. Data is the foundation of all

research. It is the raw material with which a researcher functions.

Therefore, it requires great care to select the sources of data. Data, or

facts, may be obtained from several sources. Data sources can either be primary

or secondary.

A. Secondary data:

The sources from which secondary data was collected:

Press releases of the company.

Newsletters and In-house journals.

Brochures and detailed descriptive leaflets

Magazines like Business World, Outlook, Auto India, etc.

Websites such as www.herohonda.com, www.google.com. These were the

sources from which secondary data has been gathered. Most of the

information presented in this report was extracted from the above data

sources.

B. Primary data:

- 43 -
 Collection of primary data was conducted by visiting the people

personally for the preparation of the report.

2. RESEARCH APPROACH

It means the way by which the information was collected. Visiting the

various places of Samastipur, getting the questionnaire filled by different

individuals.

Beside this, frequent visit to the showrooms of the company was of

great help to conduct the analysis and research work.

3. RESEARCH DESIGN

Research design is arrangement of condition for the collection &

analysis of data in a manner that aims to combined relevance to the research

purpose with economy in procedure. So in my project I did exploratory

research to obtain the data of customer. In the exploratory research made a

reside investigation for discovering a new ideas & gaining deep insight in the

problem. The data in actually related to the trend of Hero Motocorp

consumer.

RESEARCH DESIGN

- 44 -
 A sample design is a definite plan determine before any data are

actually collected for obtain a sample for a giver tabulation.

SAMPLE DESIGN

Here I use simple random sampling for obtain the data from

tabulation.

SAMPLE UNIT: Customer of Hero Motocorp in Samastipur.

Sample size 100

4.CONTACT METHODS

Instrument or Data collected Forms: It is the method by which data is

gathered. It could be done through various instruments like questionnaires,

observations, getting information from the staff members of the agency,

contacting to the motor mechanics was sufficient enough to conduct the

study.

5. COLLECTION OF INFORMATION

- 45 -
 The primary information was collected by face-to-face and direct

interviews with the peoples and the customers. They provide the relevant

information regarding the profile of the company as compared to the other

company in the Indian market. Most employees suggested visiting

companys web site, as it was not possible for them to spare time from their

busy schedules.

The secondary sources of information were various web sites of the

companies, newspapers & magazines such as The times of India, The

Hindustan Times, Business world, Auto India, etc.

6. ANALYZING THE INFORMATION

The data collected was carefully analyzed. The research and analysis

of the information has been done on the basis of various sales and marketing

strategies adopted by the company during its tenure.

7. CONCLUSIONS AND RECOMMENDATIONS

This is the most vital part of the work undertaken. After collection and

analysis of data, it was recorded in the form as prescribed. The major part of

the report is the findings. The finding also includes charts, tables and

- 46 -
diagrams etc. The report also mentioned the limitations of the project

undertaken. Then conclusion has been drawn out of the findings and various

recommendations have been given at the end of the report. Certain tables on

the basis of which the findings were made have been included in the

appendices section followed by the bibliography.

- 47 -
 SCOPE OF THE STUDY

Hero Motocorp is spreading its wings and widening its business horizon

to reach and serve customers at new centers in the year ahead. The company

services are backed by a highly motivated and technology driven team to

achieve customers need, product expertise and geographic reach.

The study is oriented towards the concept of different brands offered by

Hero Honda and its competitors to its customers. The company has endeavored

to move fast in providing market solution, which maximize customer needs and

convenience, using multiple delivery channels in composing the agency

network, service centers, lower service cost and increased efficiency.

- 48 -
- 49 -
 PRODUCTS OF HERO MOTOCORP

KARIZMA

CBZ

HUNK

- 50 -
PASSION

SPLENDOR

CD 100ss

- 51 -
CD 100

HF DAWN

- 52 -
 DETAIL OF THE PRODUCTS

KARIZMA

Table 2: Technical Specification Of Karizma

Technical Specifications
Engine: Air Cooled, 4 Stroke, Single Cylinder
Displacement : 223cc
Maximum Power : 17 BHP @ 7000rpm
Maximum Torque : 18.35Nm @ 6000rpm
Gear Box : 5 Speed Constant Mesh
Tyre Size (Front ) : 2.75 X 18
Tyre Size (Rear ) : 100/90 X 18
Brakes (Front) : 276 mm Disc Brake
Brakes (Rear) : 130 mm Drum Brake
Ignition : Electronic CDI
Wheelbase : 1355 mm
Ground Clearance : 150mm
Dry Weight : 150 kgs
Fuel Tank Capacity : 15 litres

CBZ

The Hero Honda CBZ (pronounced CeeBeeZee) is having 156cc engine,

the company claims that the bike has a top speed of 100kph within 5.6 seconds.

Though the bike has the largest displacement engine, its top speed doesnt

match up to many of its competitors.

Table 3: Technical Specification Of CBZ

- 53 -
 Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"

HUNK

Table 4: Technical Specification Of Hunk

Technical Specifications
Engine: Air Cooled, 4 Stroke, Single Cylinder
Displacement : 149.2cc
Maximum Power : 14.4 Ps @ 8500 rpm
Maximum Torque : 12.80 Nm @ 6500 rpm
Bore X Stroke : 57.3 X 57.8 mm
Carburettor : CV Type
Gear Box : 5 Speed Constant Mesh
Frame : Tubular, Diamond Type
Suspension (Front) : Telescopic
Suspension (Rear ) : Swing Arm 5 step Gas Reservoir Suspension.

- 54 -
 Tyre Size (Front ) : 2.75 X 18
Tyre Size (Rear ) : 100/90 X 18
Brakes : 240 mm Disc Brake (Front), 130 mm Drum Brake (Rear)
Saddle Height : 795 mm
Ignition : Advanced Microprocessor Ignition System (AMI)
Wheelbase : 1325 mm
Ground Clearance : 145mm
Dimension(LWH) : 20807651095 mm
Kerb Weight : 143 kgs (Kick), 146 kgs (Self)
Fuel Tank Capacity : 12.4 litres (Reserve 2.2 litres)
Head light : 12V 35/35W Halogen

PASSION

Table 6: Technical Specification Of Passion

Technical Specifications
Displacement : 97.2 cc
Maximum Power : 7.5 Ps at 8000 rpm
Gear Box : 4 Speed Constant Mesh
Max. Speed : 85 Kmph.
Frame : Tubular Double Cradle
Suspension (Front) : Telescopic Hydraulic Fork
Suspension (Rear ) : Swing Arm 5 step adjustable hydraulic damper.
Tyre Size (Front ) : 2.75 * 18- 4 PR /42 P
Tyre Size (Rear ) : 3.00*18-4/6 PR
Brakes : Internal Expanding Shoes Type (130mm)
Final Drive : Roller Chain
Ignition : Electronic CDI
Starting : Kick Starter
Wheelbase : 1235 mm
Ground Clearance : 160mm
Dimension(LWH) : 19807201060 mm

- 55 -
 Kerb Weight : 116 kgs.
Fuel Tank Capacity : 12.8 litres (Reserve 1.1 litres)
Head light : Halogen Bulb 35 W / 35 W

SPLENDOR
Table 7: Technical Specification Of Splendor

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.2b hp@8500 rpm
Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"

CD100
Table 8: Technical Specification Of CD 100

Technical Specifications
Displacement : 97.2 cc
Maximum Power : 7.5 Ps at 8000 rpm
Engine : 4-stroke, single cyclinder, air-cooled
Max. Speed : 85 Kmph.
Suspension (Front) : Telescopic Hydraulic Fork
Suspension (Rear ) : Swing Arm with hydraulic damper.
Tyre Size (Front /Rear ) : 2.50"x18"/2.75"x18"

- 56 -
 Dry Weight : 95 kg
Final Drive : Roller Chain
Ignition : Electronic
Starting : Kick Starter
Wheelbase : 1210 mm
Ground Clearance : 135mm
Dimensions (LxWxH) : 1885x770x1060mm
Clutch type : Manual
Clutch Secondary : Multi-plate wet
Frame : T-Bone type
Fuel Tank Capacity : 10.1 litres (Reserve 1.3 litres)
Transmission : 4-speed constant mesh

CD100 SS

Table 9: Technical Specification Of CD 100SS

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 97.2cc

Tachometer : No

Max Power : 7.0bhp@8000rpm

Wheel base : 1,220mm

Ground Clearance : 165mm

Ignition : Electronic

Dry Weight : 103kg

Fuel tank Capacity : 10.1litres

Battery : 12V

- 57 -
F/R suspension : Tel Hydraulic fork

R/R suspension : Swing arm and Hydraulic damper

Front Tyre size : 2.57x18"

Rear Tyre size : 3.00x18"

Max Speed : 85kph Technical Specifications

H F D A W N
Table 10: Technical Specification Of CD Dawn

Technical Specifications

Displacement : 97.2 cc
Engine : 4-stroke, air-cooled, single cylinder OHC
Gear Box : 4 Speed Constant Mesh
Frame : Tubular Double Cradle
Suspension (Front) : Telescopic Hydraulic shock absorber
Suspension (Rear ) : Swing Arm with step hydraulic shock absorber
Tyre Size (Front ) : 2.75 x 18-4 PR
Tyre Size (Rear ) : 2.75 x 18-6 PR
Bore x Stroke : 50.0 x 49.5 mm
Compression ratio : 8.8: 1
Starting : Kick Starter
Wheelbase : 1230 mm
Ground Clearance : 150mm
Dimension : 1980x720x1045 mm
Max power : 7.4 PS @ 8000 rpm
Max torque : 0.79 Kg-m @ 5000 rpm
Kerb Weight : 108 kgs.
Head light : Halogen Bulb 35 W / 35 W
Battery : 12V - 2.5 Ah
Clutch : Multiplate wet

- 58 -
COMPETITORS OF HERO MOTOCORP

TVS

HONDA

SUZUKI

BAJAJ

KINETIC

- 59 -
MARKETING A THEORETICAL CONCEPT

Marketing is an ongoing process of planning and executing the marketing mix

(Product, Price, Place, Promotion) for products, services or ideas to create exchange

between individuals and organizations.

Marketing tends to be seen as a creative industry, which includes advertising,

distribution and selling. It is also concerned with anticipating the customers' future

needs and wants, which are often discovered through market research.

Essentially, marketing is the process of creating or directing an organization to be

successful in selling a product or service that people not only desire, but are willing to

buy.

Therefore good marketing must be able to create a "proposition" or set of benefits for

the end customer that delivers value through products or services.

Its specialist areas include:

advertising and branding

communications

database marketing

- 60 -
 direct marketing

event organization

global marketing

international marketing

internet marketing

industrial marketing

market research

public relations

retailing

search engine marketing

- 61 -
 marketing strategy

marketing plan

strategic management

Experiential marketing

Introduction

A market-focused, or customer-focused, organization first determines what its

potential customers desire, and then builds the product or service. Marketing theory

and practice is justified in the belief that customers use a product or service because

they have a need, or because it provides a perceived benefit.

Two major factors of marketing are the recruitment of new customers (acquisition)

and the retention and expansion of relationships with existing customers (base

management). Once a marketer has converted the prospective buyer, base

management marketing takes over. The process for base management shifts the

marketer to building a relationship, nurturing the links, enhancing the benefits that

sold the buyer in the first place, and improving the product/service continuously to

protect the business from competitive encroachments.

- 62 -
 For a marketing plan to be successful, the mix of the four "Ps" must reflect the

wants and desires of the consumers or Shoppers in the target market. Trying to

convince a market segment to buy something they don't want is extremely expensive

and seldom successful. Marketers depend on insights from marketing research, both

formal and informal, to determine what consumers want and what they are willing to

pay for. Marketers hope that this process will give them a sustainable competitive

advantage.

Marketing management is the practical application of this process. The offer is also an

important addition to the 4P's theory.

Within most organizations, the activities encompassed by the marketing function are

led by a Vice President or Director of Marketing. A growing number of organizations,

especially large US companies, have a Chief Marketing Officer position, reporting to

the Chief Executive Officer.

The American Marketing Association (AMA) states, "Marketing is an

organizational function and a set of processes for creating, communicating and

delivering value to customers and for managing customer relationships in ways that

benefit the organization and its stakeholders.".

Marketing methods are informed by many of the social sciences, particularly

psychology, sociology, and economics. Anthropology is also a small, but growing

influence. Market research underpins these activities. Through advertising, it is also

- 63 -
related to many of the creative arts. Marketing is a wide and heavily interconnected

subject with extensive publications. It is also an area of activity infamous for re-

inventing itself and its vocabulary according to the times and the culture.

Concept of Marketing

Marketing is an instructive business domain that serves to inform and educate

target markets about the value and competitive advantage of a company and its

products. Value (marketing) is worth derived by the customer from owning and

using the product. Competitive Advantage is a depiction that the company or its

products are each doing something better than their competition in a way that could

benefit the customer.

Marketing is focused on the task of conveying pertinent company and product related

information to specific customers, and there are a multitude of decisions (strategies) to

be made within the marketing domain regarding what information to deliver, how

much information to deliver, to whom to deliver, how to deliver, when to deliver, and

where to deliver. Once the decisions are made, there are numerous ways (tactics) and

processes that could be employed in support of the selected strategies.

The goal of marketing is to build and maintain a preference for a company and its

products within the target markets. The goal of any business is to build mutually

- 64 -
profitable and sustainable relationships with its customers. While all business domains

are responsible for accomplishing this goal, the marketing domain bears a significant

share of the responsibility.

Within the larger scope of its definition, marketing is performed through the actions of

three coordinated disciplines named: Product Marketing, Corporate Marketing,

and Marketing Communications.

Two levels of marketing

Strategic marketing attempts to determine how an organization competes against its

competitors in a market place. In particular, it aims at generating a competitive

advantage relative to its competitors.

Operational marketing executes marketing functions to attract and keep customers

and to maximize the value derived for them, as well as to satisfy the customer with

prompt services and meeting the customer expectations. Operational Marketing

includes the determination of the porter's five forces model

Four Ps

Marketing mix

In the early 1960s, Professor Neil Borden at Harvard Business School identified a

number of company performance actions that can influence the consumer decision to

- 65 -
purchase goods or services. Borden suggested that all those actions of the company

represented a Marketing Mix. Professor E. Jerome McCarthy, also at the Harvard

Business School in the early 1960s, suggested that the Marketing Mix contained 4

elements: product, price, place and promotion.

In popular usage, "marketing" is the promotion of products, especially advertising and

branding. However, in professional usage the term has a wider meaning which

recognizes that marketing is customer-centered. Products are often developed to meet

the desires of groups of customers or even, in some cases, for specific customers. E.

Jerome McCarthy divided marketing into four general sets of activities. His typology

has become so universally recognized that his four activity sets, the Four Ps, have

passed into the language.

The four Ps are:

Product: The product aspects of marketing deal with the specifications of the
actual goods or services, and how it relates to the end-user's needs and wants.

The scope of a product generally includes supporting elements such as

warranties, guarantees, and support.

Pricing: This refers to the process of setting a price for a product, including
discounts. The price need not be monetary - it can simply be what is exchanged

for the product or services, e.g. time, energy, psychology or attention.

- 66 -
 Promotion: This includes advertising, sales promotion, publicity, and
personal selling, branding and refers to the various methods of promoting the

product, brand, or company.

Placement (or distribution): refers to how the product gets to the

customer; for example, point of sale placement or retailing. This fourth P has

also sometimes been called Place, referring to the channel by which a product

or services is sold (e.g. online vs. retail), which geographic region or industry, to

which segment (young adults, families, business people), etc.

These four elements are often referred to as the marketing mix,[2] which a marketer

can use to craft a marketing plan. The four Ps model is most useful when marketing

low value consumer products. Industrial products, services, high value consumer

products require adjustments to this model. Services marketing must account for the

unique nature of services. Industrial or B2B marketing must account for the long term

contractual agreements that are typical in supply chain transactions. Relationship

marketing attempts to do this by looking at marketing from a long term relationship

perspective rather than individual transactions. As a counter to this, Morgan, in Riding

the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations

of the 4 Ps approach "is that it unconsciously emphasizes the insideout view (looking

- 67 -
from the company outwards), whereas the essence of marketing should be the

outsidein approach".

Seven Ps

As well as the standard four P's (Product, Pricing, Promotion and Place), services

marketing calls upon an extra three, totaling seven and known together as the

extended marketing mix. These are:

People: Any person coming into contact with customers can have an impact
on overall satisfaction. Whether as part of a supporting service to a product or

involved in a total service, people are particularly important because, in the

customer's eyes, they are generally inseparable from the total service . As a

result of this, they must be appropriately trained, well motivated and the right

type of person. Fellow customers are also sometimes referred to under 'people',

as they too can affect the customer's service experience, (e.g., at a sporting

event).

Process: This is the process(es) involved in providing a service and the

behaviour of people, which can be crucial to customer satisfaction.

- 68 -
 Physical evidence: Unlike a product, a service cannot be experienced
before it is delivered, which makes it intangible. This, therefore, means that

potential customers could perceive greater risk when deciding whether to use a

service. To reduce the feeling of risk, thus improving the chance for success, it

is often vital to offer potential customers the chance to see what a service

would be like. This is done by providing physical evidence, such as case

studies, testimonials or demonstrations.

Four New Ps

Personalization: It is here referred customization of products and services

through the use of the Internet. Early examples include Dell on-line and

Amazon.com, but this concept is further extended with emerging social media

and advanced algorithms. Emerging technologies will continue to push this

idea forward.

Participation: This is to allow customer to participate in what the brand

should stand for; what should be the product directions and even which ads to

run. This concept is laying the foundation for disruptive change through

democratization of information.

Peer-to-Peer: This refers to customer networks and communities where

advocacy happens. The historical problem with marketing is that it is

- 69 -
 interruptive in nature, trying to impose a brand on the customer. This is most

apparent in TV advertising. These passive customer bases will ultimately be

replaced by the active customer communities. Brand engagement happens

within those conversations. P2P is now being referred as Social Computing and

is likely to be the most disruptive force in the future of marketing.

Predictive modeling: This refers to algorithms that are being successfully

applied in marketing problems (both a regression as well as a classification

problem).

Product

Main article: New Product Development

Scope

Breadth -- number of product lines in a range.

Depth -- number of product items in a product line.

Steps in product design

Design and development of product ideas.

Selection of and sifting through product ideas.

- 70 -
 Design and testing of product concept.

Analysis of instead of product concept.

Design and testing of emotional product.

Packaging for resale packed, into appropriate quantities, for the retailer or

wholesaler

Trademarks

Significance of a trademark

Distinguishes one company's goods from those of another

Serves as advertisement for quality

Protects both consumers and manufacturers

Used in displays and advertising campaigns

Used to market new products

- 71 -
 Brands

A brand is a name, term, design, symbol, or other feature that distinguishes products

and services from competitive offerings. A brand represents the consumers' experience

with an organization, product, or service.

A brand has also been defined as an identifiable entity that makes a specific promise

of value.

Co-branding involves marketing activity involving two or more products.

Pricing

Pricing refers to the amount of money exchanged for a product. This value is

determined by utility to the consumer in terms of money and/or sacrifice that the

consumer is prepared to give for it.

Objectives

Increase sales volume

Increase revenue

Achieve or increase profits

Increase or maintain market share

Eliminate competition

- 72 -
 Achieve advantages of mass production

Factors influencing price-determination

Production and distribution costs

Substitute goods available

Normal trade practices

Fixed prices

Reaction of distributors

Reaction of consumers

Nature of demand:

o elastic/inelastic

Form of market:

o Perfect competition

o Monopolistic competition

o Monopoly

- 73 -
 o Oligopoly

Steps to determine price

Determine market share to be captured

Set up price strategy

Estimate demand

Evaluate competitors' reactions

Distribution (Place)

Channels

Manufacturer to consumer (most direct)

Manufacturer to wholesaler to retailer to consumer (traditional)

Manufacturer to agent to retailer to consumer (current)

Manufacturer to agent to wholesaler to retailer to consumer

Manufacturer to agent to customer ( ex : AMWAY )

- 74 -
 Manufacturers

Reasons for direct selling methods

Manufacturer wants to demonstrate goods.

Wholesalers, retailers and agents not actively selling.

Manufacturer unable to convince wholesalers or retailers to stock product.

High profit margin added to goods by wholesalers and retailers.

Middlemen unable to transport.

Reasons for indirect selling methods

Manufacturer does not have the financial resources to distribute goods.

Distribution channels already established.

Manufacturer has no knowledge of efficient distribution.

Manufacturer wishes to use capital for further production.

Too many consumers in a large area; difficult to reach.

- 75 -
 Manufacturer does not have a wide assortment of goods to enable efficient

marketing.

direct on-selling advantages

Wholesalers

Reasons for using wholesalers

Bear risk of selling goods to retailer or consumer

Storage space

Decrease transport costs

Grant credit to retailers

Able to sell for the manufacturers

Give advice to manufacturers

Break down products into smaller quantities

Reasons for bypassing wholesalers

Limited storage facilities

- 76 -
 Retailers' preferences

Wholesaler cannot promote products successfully

Development of wholesalers' own brands

Desire for closer market contact

Position of power

Cost of wholesalers' services

Price stabilisation

Need for rapid distribution

Make more money

Ways of bypassing wholesalers

Sales offices or branches

Mail orders

Direct sales to retailers

Travelling agents

- 77 -
 Agents

Commission agents work for anyone who needs their services. They do not

acquire ownership of goods but receive del credere commission.

Selling agents act on an extended contractual basis, selling all of the products

of the manufacturer. They have full authority regarding price and terms of sale.

Buying agents buy goods on behalf of producers and retailers. They have an

expert knowledge of the purchasing function.

Brokers specialize in the sale of one specific product. They receive a

brokerage.

Factory representatives represent more than one manufacturer. They operate

within a specific area and sell related lines of goods but have limited authority

regarding price and sales terms.

Marketing communications

Marketing communications breaks down the strategies involved with marketing

messages into categories based on the goals of each message. There are distinct stages

in converting strangers to customers that govern the communication medium that

should be used.

- 78 -
 Advertising

Paid form of public presentation and expressive promotion of ideas

Aimed at masses

Manufacturer may determine what goes into advertisement

Pervasive and impersonal medium

Functions and advantages of successful advertising

Task of the salesman made easier

Forces manufacturer to live up to conveyed image

Protects and warns customers against false claims and inferior products

Enables manufacturer to mass-produce product

Continuous reminder

Uninterrupted production a possibility

Increases goodwill

- 79 -
 Raises standards of living (or perceptions thereof)

Prices decrease with increased popularity

Educates manufacturer and wholesaler about competitors' offerings as well as

shortcomings in their own.

Objectives

Maintain demand for well-known goods

Introduce new and unknown goods

Increase demand for well-known goods/products/services

Requirements of a good advertisement

Attract attention (awareness)

Stimulate interest

Create a desire

Bring about action

- 80 -
Eight steps in an advertising campaign

Market research

Setting out aims

Budgeting

Choice of media (TV, newspaper, radio)

Choice of actors (New Trend)

Design and wording

Coordination

Test results

Personal sales

Oral presentation given by a salesman who approaches individuals or a group of

potential customers:

Live, interactive relationship

- 81 -
 Personal interest

Attention and response

Interesting presentation

Sales promotion

Short-term incentives to encourage buying of products:

Instant appeal

Anxiety to sell

Marketing Public Relations (MPR)

Stimulation of demand through press release giving a favourable report to a

product

Higher degree of credibility

Effectively news

Boosts enterprise's image

- 82 -
 Customer focus

Many companies today have a customer focus (or customer orientation). This implies

that the company focuses its activities and products on consumer demands. Generally

there are three ways of doing this: the customer-driven approach, the sense of

identifying market changes and the product innovation approach.

In the consumer-driven approach, consumer wants are the drivers of all strategic

marketing decisions. No strategy is pursued until it passes the test of consumer

research. Every aspect of a market offering, including the nature of the product itself,

is driven by the needs of potential consumers. The starting point is always the

consumer. The rationale for this approach is that there is no point spending R&D

funds developing products that people will not buy. History attests to many products

that were commercial failures in spite of being technological breakthroughs.[3]

A formal approach to this customer-focused marketing is known as SIVA (Solution,

Information, Value, and Access). This system is basically the four Ps renamed and

reworded to provide a customer focus.

The SIVA Model provides a demand/customer centric version alternative to the well-

known 4Ps supply side model (product, price, place, promotion) of marketing

management.

- 83 -
 Product -> Solution

Promotion -> Information

CPrice -> Value

Place ->Access

The four elements of the SIVA model are:

1. Solution: How appropriate is the solution to the customer's problem/need?

2. Information: Does the customer know about the solution? If so, how and
from whom do they know enough to let them make a buying decision?

3. Value: Does the customer know the value of the transaction, what it will
cost, what are the benefits, what might they have to sacrifice, what will be their

reward?

4. Access: Where can the customer find the solution? How

easily/locally/remotely can they buy it and take delivery?

This model was proposed by Chekitan Dev and Don Schultz in the Marketing

Management Journal of the American Marketing Association, and presented by them

in Market Leader - the journal of the Marketing Society in the UK.

The model focuses heavily on the customer and how they view the transaction.

- 84 -
 Product focus

In a product innovation approach, the company pursues product innovation, then tries

to develop a market for the product. Product innovation drives the process and

marketing research is conducted primarily to ensure that a profitable market

segment(s) exists for the innovation. The rationale is that customers may not know

what options will be available to them in the future so we should not expect them to

tell us what they will buy in the future. However, marketers can aggressively over-

pursue product innovation and try to overcapitalize on a niche. When pursuing a

product innovation approach, marketers must ensure that they have a varied and multi-

tiered approach to product innovation. It is claimed that if Thomas Edison depended

on marketing research he would have produced larger candles rather than inventing

light bulbs. Many firms, such as research and development focused companies,

successfully focus on product innovation (Such as Nintendo who constantly change

the way Video games are played). Many purists doubt whether this is really a form of

marketing orientation at all, because of the ex post status of consumer research. Some

even question whether it is marketing.

An emerging area of study and practice concerns internal marketing, or how

employees are trained and managed to deliver the brand in a way that

positively impacts the acquisition and retention of customers (employer

branding).

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 Diffusion of innovations research explores how and why people adopt new

products, services and ideas.

A relatively new form of marketing uses the Internet and is called Internet

marketing or more generally e-marketing, affiliate marketing, desktop

advertising or online marketing. It typically tries to perfect the segmentation

strategy used in traditional marketing. It targets its audience more precisely,

and is sometimes called personalized marketing or one-to-one marketing.

With consumers' eroding attention span and willingness to give time to

advertising messages, marketers are turning to forms of permission marketing

such as branded content, custom media and reality marketing.

The use of herd behavior in marketing.

The Economist reported a recent conference in Rome on the subject of the

simulation of adaptive human behavior.[5] Mechanisms to increase impulse

buying and get people "to buy more by playing on the herd instinct" were

shared. The basic idea is that people will buy more of products that are seen to

be popular, and several feedback mechanisms to get product popularity

information to consumers are mentioned, including smart-cart technology and

the use of Radio Frequency Identification Tag technology. A "swarm-moves"

model was introduced by a Princeton researcher, which is appealing to

supermarkets because it can "increase sales without the need to give people

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discounts." Large retailers Wal-Mart in the United States and Tesco in Britain

plan to test the technology in spring 2007 .

Other recent studies on the "power of social influence" include an "artificial

music market in which some 14,000 people downloaded previously unknown

songs" (Columbia University, New York); a Japanese chain of convenience

stores which orders its products based on "sales data from department stores

and research companies;" a Massachusetts company exploiting knowledge of

social networking to improve sales; and online retailers who are increasingly

informing consumers about "which products are popular with like-minded

consumers" (e.g., Amazon, eBay).

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 FACTS & FIGURES

PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken

from the mentioned areas for the survey. It was observed that the people of main

town like to use Hero as they like all features of it. And is according to there

pocket

Areas % Of Respondents

Rambhudpur 42

Warish Nagar 26

New Ashok Nagar 14

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Karol bagh 12

Other 06

Fig 1: No of Respondents in Particular Area

Ramesh Nagar
Laxmi Nagar
New Ashok Nagar
Karol Bagh
Other

BIKES MOSTLY USED

It was observed that most of the people like to use different models of

Hero Honda as they like all features of it and is easily affordable.

Bikes % Rating by Respondents

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Splendor 25

Ambition 08

Passion 17

CD Dawn 10

Others 40

Fig 2: Bikes Mostly Used

AGE OF THE RESPONDENTS

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 It is observed that the bikes of Hero Honda are designed after considering

people of different age groups. There are different models for people having

different age. For youngsters who want speed & style buy Karizma , CBZ or

Hunk. People of age above 30yrs want style, comfort & average, so they prefer

Ambition, Passion, Splendor etc.

Age of the Respondents % Rating

15-25 yrs 38

25-35 yrs 33

35-45 yrs 19

45 & above 10

Fig 3: Age of Respondents

INCOME OF RESPONDENTS

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 The income distribution of the families of respondents shows that the

bike, which was considered earlier to be out of range for middle class families is

now becoming very fast an article for them.

Income (Rs.) % Of Respondents

5,000-10,000 10

10,000-15,000 46

15,000-20,000 36

Above 20,000 08

Fig 4: Income of the Respondents

MONTH PREFERED FOR PURCHASING A BIKE

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 Almost every person prefer particular month for purchasing a bike, some

prefer festive season in month of October and November and some prefer

March, after budget.

Month % Of Respondents

Festive season 52

After Budget 48

Fig 6: Months preferred By Respondents

CAPACITY MOSTLY PREFERED

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 It is observed that the bikes of Hero Honda are designed after considering

people of different needs. For youngsters who want speed & style prefer 150cc-

200cc or above 200cc bike such as Karizma , CBZ or Hunk. People want style,

comfort & average prefer Ambition, Passion, Splendor and those who believe in

solid design, comfort & average prefer CD Dawn, CD Deluxe etc.

Capacity % Of Respondents

100cc 52

100-150cc 32

150-200cc 10

Above 200 06

Fig 7: Capacity mostly preferred by Respondents

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MODE OF PAYMENT

Almost 80% of the respondents say that they have purchased the bike by

cash. Only 20% of the respondents say that they have purchased their bike

through bank loans.

Payment Mode % Of Respondents

Cash 80

Loan 20

Fig 8: Mode Of Payment

RATING OF BIKES

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 42% of the respondents have rated as the best bike they have used, but it

is facing a stiff competition from Pulsar & Fierro.

Bikes % Rating by Respondents

Splendor 38

Passion 08

Ambition 06

Pulsar 28

Discover 14

Others 06

Fig 9: Rating Of Bikes by the Respondents

FACTORS PROMPT TO BUY HERO HONDA

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 It should be stated that the performance is the most important factor

followed by look. The possible combination and corresponding number of

respondents are shown in the table below.

Features % Of Respondents

Performance 36

Look 22

Availability 10

Price 02

Maintenance 08

Brand image 10

After Sales Service 12

Fig 10: Factors Prompt to buy Hero Honda

HOW DID THE RESPONDENT COME TO KNOW ABOUT THE BIKE?

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 The best media of advertisement (according to which the respondents

came to know about the bike) is the ads on television. Friends & magazine are

the other sources. Only 2 % of them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46

Magazines 36

Friends 14

Hoardings 02

Others 02

Fig 11: Media created awareness among Respondents

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DECISION INFLUENCED BY

Maximum no. of Respondents has decided to purchase bike on

their own. After that their friends and parents influenced them.

Influencer % Of Respondents

Self 54

Parents 18

Friends 16

Relatives 08

Others 04

Fig 12: Decision Influenced by

REMARK TO YOUR BIKE

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 All respondent had given different remark to their bikes. Some say they

are satisfied with the performance and rating it as Excellent, Good,

Satisfied, few respondent are dissatisfied with the performance of their bike.

Remark % Of Respondents

Excellent 72

Good 23

Satisfied 04

Dissatisfied 01

FINDINGS & RECOMMENDATIONS

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FINDINGS

Hero Honda Motors is facing cutthroat competition; hence the companys

manager has to be fast and smart so as to understand the customer needs.

They have to come up with various new techniques or schemes to be able to

cater to different categories of people.

We can analyze that if the brand is reputed that doesnt win the customers

delight unless its provided same value-added features or else we can say

competitive advantage.

Surveys revealed that awareness of Hero Honda Motors is low among its

target segment for creativity awareness. The company has to take some keen

step for promotional activity.

The company should regularly send the sales person who have good

communication skill to the customers so that they should be aware about the

product and services in market and know the quality of the services offered

by the company.

RECOMMENDATION

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 While Hero Honda has strong foothold in the industry, the company

should look into the areas of weakness.

In this connection, It is suggested that the company can look into the following

areas:

In order to expand its business it should introduce innovative schemes for

young generations, better financial schemes, etc.

The company should expand its service centers.

The must move towards the rural areas to expand its sale.

Customers are becoming more wise day by day and they are now willing

to know all the in and out of the things happening around them. This has

led to increased customer awareness.

For gaining a competitive advantage it has to continuously compare the

product and services with the competitors and find the weak area of the

rivals for gaining competitive advantage.

- 102 -
 SWOT Analysis of Hero Honda

Strength

Ability to understand customers needs and wants

Recognized and established brand name

Effective advertising capability

Good technology

Maintenance cost is low

Weaknesses

R&D is not close to the Hero manufacturing plant

Hero is vulnerable in the joint venture because Honda motor company

has so much power

Brand name of hero self has no influence in the automobile industry

Opportunities

Global expansion

Expansion of target market {include women}

Financial help easily available

Threats

Bajaj motors is a strong competitors

Petrol price increases

- 103 -
 Pollution norms

- 104 -
 LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the

company to assess how far the customers are satisfied with product and services

of Hero Motocorp. During the course of the study the following limitations

were observed:

The method will be unsuitable if the number of persons to be surveyed is

very less as it will be difficult to draw logical conclusions regarding the

satisfaction level of customers.

Interpretation of data may vary from individual depending on the

individual understanding the product features and services of the

company.

The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

It is very difficult to check the accuracy of the information provided.

Since all the products and services are not widely used by all the

customers it is difficult to draw realistic conclusions based on the survey.

- 105 -
 ANNEXURE - 1

QUESTIONNAIRE
Date _____________

1. Name of the respondent________________________________________

2. Address_____________________________________________________

3. Contact No. ___________________Mobile ________________________

4. Name of the bike you are using

__________________________________________________________

5. Age of the person driving a bike.

(i) 15-25 yrs [ ] (ii) 25-35 yrs [ ] (iii) 35-45 yrs [ ]

(iv) 45 yrs & above [ ]

6. Income of the person affording a bike.

(i) 5,000-10,000 [ ] (ii) 10,000-15,000 [ ] (iii) 15,000-20,000 [ ]

(iv) 20,000 & above [ ]

7. Bike that is previously used.

8. In which month you prefer buying

___________________________________________________________________________

9. What is the capacity of your bike

(i) 100cc [ ] (ii) 100-150cc [ ] (iii) 150-200cc [ ] (iv) Above 200 [ ]

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10. What is the mode of payment

(i) Cash [ ] (ii) Loan [ ]

11. Rank the bike according to your preference

(i) Karizma [ ] (ii)CBZ [ ] (iii)Hunk [ ] (iv)Ambition [ ] (v)Passion [ ]

(vi)Splendor [ ] (viii)CD Dawn [ ] (ix)Pulsar [ ] (x) Discover [ ]

(xii) Others [ ]

12.Priority given for selecting a bike

(i) Performance [ ] (ii) Style [ ] (iii) Availability [ ] (iv) Price [ ]

(v) Maintenance [ ] (vi) Brand image [ ] (vii) After sales service [ ]

13. How did the respondent came to know about the bike he had

(i) Television [ ] (ii) Magazines [ ] (iii) Friends [ ] (iv) Hoardings [ ]

(v) Others [ ]

14. Who influenced the decision of purchasing a bike

(i) Self [ ] (ii) Parents [ ] (iii) Friends [ ] (iv) Relatives [ ]

(v)Others[ ]

15.Give remark to your Bike

(i) Excellent [ ] (ii) Good [ ] (iii) Satisfied [ ]

(iv) Dissatisfied [ ]

Thanks

- 107 -
 BIBLIOGRAPHY

BOOKS

Majumdar; Marketing research; New Delhi; New Age International; 1996

Kotler Philip; Marketing Management; Asia; Pearson Education Asia;

1992

Kothari, CR; Research Methodology; New Delhi; New Age International;

1998

MAGAZINES, JOURNALS AND NEWSPAPERS

Journals published by Hero Honda, Annual Report

Auto India, Business World

INTERNET

www.herohonda.com

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