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(2008-2010) Holl.no. 107Y1E0082

This is to certify the project report ADVERTISING & SALES PROMOTION OF HERO

HONDA TWO WHEELRS submitted to D.Ravindar Reddy, bearing H.T.No.107Y1E0082and

submitted in partial fulfillment for the award of master degree in business administration.

Place: Date:

I declare that this Project work titled ADVERTISEMENT AND SALES PROMOTION TOWARDS HERO HONDA TWO WHEELERS, with special reference to KATAKAM MOTORS is a bonafied work which I have executed for the award of the Degree MASTER OF BUSINESS ADMINISTRATION (MBA) form Marri Laxman reddy Institute Of Technology & Management , Dundigal, HYD (Affiliated to JNTUH, HYD). I also declare that this work is my own and this has not been produced or submitted for the award of any Degree or Diploma by any other University or Institute previously. Project is the result of my own efforts and it has not been submitted to another University for the award of any Master Degree.

Place: Date:

( D.RAVINDAR REDDY) H.T.No. 107Y1E0082

I express my profound gratitude to Mr. HANUMANTHA RAO, M.D, K.SUNITHA, MANAGER, KATAKAM HERO HONDA MOTORS (Pvt.) Ltd., for granting me permission to do project in their organization. I thank my family and friends of being a source of inspiration and support to complete the project support to complete the project successfully. Last but not least I am very much thankful to my respondents for giving me necessary informat.


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Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing the products perceived performance or outcome in relation to his or her expectations. As this definition makes clear, satisfaction is function of perceived performance and expectations. If the performance matches the expectations, the consumer is satisfied. If the performance exceeds the expectations, the consumer highly satisfied delighted. Man companies are aiming for high satisfaction because consumers who are just satisfied still find it easy to switch when a better offer comes along. Those who are highly satisfied are less ready to switch high satisfaction or delight an emotional bond with the brand. The result is high consumer loyalty. Some of todays most successful companies are raising expectations and delivering performance to match. These companies are aiming to TCS total consumer satisfaction The key to generate high consumer loyalty is to deliver high consumer value products. In addition to tracking consumer values, expectations and satisfaction, companies need to monitor their competitors performance in their areas. To be in track with the consumer can use. I. Complaint and suggestion system II. Consumer satisfaction surveys III. Lost consumer analysis Most of research on satisfaction has focused on products and service for which consumer can make an evaluation in terms of both utilitarian dimensions (how the product / service functions) and hedonic dimensions (how if makes one feel). The consumers make a conscious comparison between expectation (what think will happen) and actual performance. A positive evaluation results in satisfaction and negative one leads to dissatisfaction, satisfaction can be associated with feelings are generally temporary mean the consumer will be satisfied now des not necessarily mean the consumer will be satisfied the next time. Evaluations also tend to be tied up specific consumptions situations using the product or service at the current time. In these ways,

satisfaction differs from an attitude, which is relatively enduring and more independent on the specific situation . Level of satisfaction can also vary b involving and time. Specifically high involvement consumers tend to express a higher level of satisfaction immediately after purchase probably due to more extension evaluation. However their satisfaction declines overtime. On the other hand, lower involvement consumers exhibit lower of satisfaction initially, but their level of satisfaction tends to increase overtime. Satisfied consumers are the foundation for a successful business specifically, satisfaction is critical because it lads to repeat purchase and brand loyalty.


In the modern times, the business organizations are adopting new schemes and strategies for the growth of their business. The organizations are giving better services to their customers to face challenges posed by the competitors. For every business, it is not only important to retain the present customers but also to attract the new customers. So there is a need to ascertain the customers use regarding the services provided by a key organization like Hero Honda.

With out cutthroat competition in the service sector, there is a strong need to concentrate on the new strategies to get closer to the customer and to have a strong hold in the market. Hence this situation necessitated to take up this study.


The following are the important objectives of the study.

A. To evaluate the performance of HERO HONDA Motorcycles.

B. To find out product differentiation with other motor vehicles. C. To find the suitability.

D. To find customers opinion towards the particular brand of HERO HONDA two wheelers
E. To evaluate dealer performance and services. F. To find the availability of spare parts. G. To suggest for the improvement in the product feature.


1) 2)

The study is limited to khammam town and their nearest surrounding areas The present study is based on a sample of 100 respondents. The present study covers HERO HONDA motorcycle users only. The sample is collected from businessmen, officers, employees and students. The results cannot be universally applied but to some extent they may be useful. Most of the buyers have limited knowledge about other brands.

4) 5) 6)

The method adopted for collecting the data is market survey method. For collecting there is a well structured questionnaire has been prepared with a view to as certain the objectives of the study.

SOURCES OF DATA: This study is mainly based on the primary and secondary data. PRIMARY DATA: Primary data was collected from respondents through questionnaires. After collecting the questionnaires from the respondents the statistical tools and inferences are used for tabulation and analyzing data.

SECONDARY DATA : Source of secondary data are some professional journals, publishing respects, records of the sale order of the dealer and other business records, news papers, magazines and library literature.

SAMPLE SIZE: For conducting the survey the sample size 100, which is selected randomly.



Hero Honda it the worlds largest manufacturer of 2 wheelers. Its symbol, the wings, represents the companys unwavering dedication in achieving goals that are unique and above all conforming to international norms. These wigs are now in India as Hero Honda Motorcycle & Scooter India Private Limited (HMSI) a wholly owned subsidiary of Hero Honda Motor Company Ltc. Japan. These wings are here to initiate a change and make a difference in the Indian 2-wheeler industry. Hero Hondas dream for India is to not only manufacture 2-wheelers of global quality, but also meet and exceed the expectations of Indian customers with outstanding after sales support.

About Us



Hero Honda Motorcycle & Scooter India Pvt. Ltd. 20th Aug 1999 Manesar, District Gurgaon, Haryana, India. Rs. 300 Crore Mr. Yukihiro Aoshima, President & CEO Manesar, District Gurgaon, India 10, 50,000 Units Per Year.

Established Place

Capital Representative Location



Engine Assembly
Engine Assembly is done in an enclosed air pressurized area to protect the engine form dirt and dust. Each of the engines is then inspected for various parameters.

Frame Assembly
Frame Assembly is done at the siat conveyor. After the frame Assembly line is the roller tester to check the final scooter quality before handing over to dispatch. From the world of international bikes, Unicorn gets a unique style appeal with mono suspension. A look that is never before seen on Indian motor cycles.

Combi Break System

Generally, it is not easy to control a 2-wheeler while braking during emergencies and bad road conditions. This system notonly allows easy & simultaneous operation of he front & rear brake but also provides optimal braking performance. Once the left side brake lever is pressed, the system distributes the appropriate braking power between the front and rear wheels, which assures complete safety for the rider.

Hero Honda Matic Transmission

The compact, efficient & oil pressure controlled Hero Hondamatic Transmission is the Words first fully automatic transmission system, which delivers a dynamic combination of torque & excellent accelerator response for a constant and superior driving experience. The transmission is being used in Hero Hondas all terrain vehicles. Hero Honda is working hard to introduce this Hero Hondamatic in two-wheelers.

Fuel Injection System

Hero Hondas fuel injection technology is designed to realize ideal combustion, which results in delivering maximum power output , greatly improved fuel efficiency and yet be environment


Unique practices create unique organization. Hero Honda was established upon the fundamental belief in the value of each individual. Based on our philosophy, we respect independent spirit and freedom, equality and mutual trust of human beings who work for or come in contact with out company. As such our management polices focus on developing and enhancing the essential characteristics that every individual possesses-capacity to think, reason, and most importantly the ability to dream.

Hero Honda & Safety

Enhancing safety on the roads is one of Hero Hondas top priorities. We firmly believe that the realization of a comfortable and enjoyable mobile society depends on the mutual trust that automobile manufacturers like us share with the consumers and society. At Hero Honda, we use a three prong approach, based on preventing accidents from happening in the first place, minimizing injury in the unlikely event of an accident and our Driving Safety Promotion operations. .

HMSI Net Work

Every Hero Honda dealership is known as a H.E.A.D. Hero Honda Exclusive Authorized Dealer. Each H.E.A.D exclusively handles Hero Honda 2-wheelers and promoters business activities based on policies that focus on customer satisfaction. They are the representatives of HMSI in their respective markets and provide 4s facilities under one roof as per Hero Hondas worldwide standards. Wherever you travel across the globe, Hero Honda H.E.A.Ds (Dealerships) stand out with their unique identify. The design of the H.E.A.Ds in India has also been done with the same purpose in mind.

Safe Riding
Respect for human life forms a part of Hero Hondas corporate philosophy. To realize this, safety riding is being actively promoted by HMSI. Safety riding programmers have been implemented at all H.E.A.Ds Out wish is to build-up a safe environment for driving by giving pre- delivery safety advise to each Hero Honda cut

The Group Companies

Hero Honda Worldwide
Hero Honda Motor Company, Japan with its head quarters in Tokyo, has manufacturing operations in 32 countries with 109 production bases; it has 3 business divisions namely 2 wheelers, 4whellers and power products. Apart from HMSI that manufactures 2-wheelers, the other business divisions in India Include Hero Honda Siel cars India Limited (HSCL) and Hero Honda Siel Power Limited (HSPL). The company principal of Hero Honda Worldwide is dedication to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction.

Hero Honda Siel Cars India Limited (HSCI)

Hero Honda Siel Cards India Litd, (HSCI) was incorporated in December, 1995 as a joy between Hero Honda Motor Co.Ltd., Japan and Siel Limited to Manufacture HERO HONDA Cars in India. The company is ISO 9002 and ISO 14001 certified. Companys products include the 7th Generation Hero Honda ACCORD launched in 2003 and new Hero Honda CITY launched in October, 2003. The company is also selling its CR-V model through the CBU importation programmed from Japan.

Hero Honda Siel Power Limited (HSPL)

Hero Honda Siel Power Lit (HSPL) is a Joint venture between Hero Honda Motor Co., Japan and Siel Ltd., India. Currently Hero Honda Motor Company, Japan has a 67% Equity Stake in this company. It was incorporated in September 1985 and produces a range of power http://www.wer.com// Products in India, like portable Gensets, portable Engines, and Portable water pumping Engines, portable water pumping set and Lawnmowers.

Hero Honda R&D (India ) Pvt.Ltd.

By establishing R&D facilities in three key regions beyond Japan (designated as to Americas, Asia and Europe ), Hero Honda R&D develops technologies and products it the needs of people in individual regions, yet bound together by common values environmental preservation and regional economic development.

The companys objective is to make an R&D that works jointly with the people on produce motorcycles for the enrichment of society and lifestyle of users of India.

The Philosophy
HMSI operates on a principle, which is followed worldwide by all Hero Honda companies. Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. Hero Hondas philosophy is based on the companys guiding principle and advocates 2 fundamental beliefs:

Respect for the Individual

Hero Honda recognizes and respects individual differences. The respect for individual stems from the following three points: Initiative Equality Trust

It is contribution from each individual in the company that has made our company what it is today and that, which will take us into the future.

In katakam Hero Honda, the products of Hero Honda Company are available as follows. Types of vehicles Brands 1. Scooter : Activa / Dio 102 cc 2. Gares Scooter 3. Scooter brake) (Full size) 4. Motor Bike : Unicorn 150 cc (Self & Kick) : : Eterno 150 cc Aviator 102cc (disk

5. Motor Bike &spoke) 6. Motor Bike Spare Parts :-

: :

Shine 125 cc (drum disk Stunner 125cc (self &disk)

All the spare parts related to scooters, motors bikes are available at katakam Hero Honda are reasonable according to the quality. Schemes:No schemes are provided. Financial facilities are available from ICICI, HDFC, centurion bank & Shriram Chts.

1. HERO HONDA UNICORN :The first motorcycle by Hero Honda Motorcycle & Scooters India PVT. Ltd. In the Indian market. Unicom is powered by a newly developed Hero Honda 4-stoke. 150 cc engine and incorporates many cutting edge technologies developed by Hero Hondas global R&D team. It sets new benchmark in the upper majority motorcycle segment in India with its acceleration, superior mileage. International styling riding comfort and convenience. Unicorn is engineered and styled for the taste of the younger generation. With the 4-stroke, 140cc engine delivering a whooping 13.3 php. Unicorn is the fastest motorcycle in India delivering a whooping 13.3. php. Unicorn is the fastest motorcycle in India racing from 0 to 60 kms per hour in a mere 5 seconds. It has a distinctive sporty and macho design with a racy front face, masculine fuel tank with knee grip and a sleek rear cow. 2. NEW PREMIUM HERO HONDA SHINE: NEW STYLISH BODY GRAPHICS



3. HERO HONDA STUNNER: Integrated front body cowl High performance Hero Honda engine with 5 speed transmission Sporty foot step holder

240mm front disk break

HERO HONDA UNICORN WEIGHT /MEASUREMENTS :Kerb Weight Length Width Height Fuel tank Capacity (Full) 146 2090 mm 750 mm 1100 mm 13 litres

UNICORNS PERFORMANCE :Max speed Acceleration 101kmph 5sec

BODY :Rear Suspension Front Tyre Rear Tyre Front Brake Type Rear Brake Type Advanced Technology Mono Suspension 2.75 18 3.00 18 240 mm Disc 130 mm Drum

ENGINE TRANSMISSION :Engine Type Displacement :: :: 4 Storke, Air Cooled OHC Single Cylinder 149.1 cc

Net Power Torque Air Filter

:: :: ::

13.3 bhp @ 8000 rpm (9.9 KW) 1.3 Kg-m @ 5500 rpm (12.8 NM) Paper Type

ELCTRICAL :Ignition Starting Battery :: :: :: Digital CDI ( Multi Mapping ) Kick / Self 12-2.5 Ah (Kick) / 12- 7 Ah (Self )

HERO HONDA SHINE WEIGHT /MEASUREMENTS :Kerb Weight Length Width Height Fuel tank Capacity (Full) 122KG 2015 mm 730 mm 1017 mm 11 litres

HERO HONDA SHINES PERFORMANCE :Mailage Acceleration 60kmpl 5.3sec

BODY :Rear Suspension Front Tyre Rear Tyre Front Brake Type Rear Brake Type ENGINE TRANSMISSION :Engine Type Displacement Net Power :: :: :: 4 Storke, Air Cooled OHC Single Cylinder 124.6cc 10. bhp @ 7500rpm (7.68) 3 step spring loaded hydraulic shock absorber 2.75 18 42 p (4pr) 2.75- 1848p (6pr) 240 mm Disc 130 mm Drum

Torque Air Filter

:: ::

1.1Kg-m @ 5500 rpm (10.9NM) Paper Type

ELCTRICAL :Ignition Starting :: :: Digital CDI ( Multi Mapping ) Kick / Sels


In a newspaper we not only read news on current affairs, sports etc. But we also come across several information or message about some product or services like air conditioners, cycles, hair oils, transporters, builders etc. you also come across such information in journals, magazines roadside hearings, radio television etc. this information makes you aware about the products of services in terms of then availability price and features. So, whenever you fell a requirement for such products or services you try to go to the place of their availability, look at the quality and features and buy them if they meet your requirement. For example, while listening to radio you come across a product called Bajaj Almond hair oil. DEFINITION: The American Marketing Association defines Advertises any paid form of non-personal presentation and promotion of ideas. Goods and services by an identified sponsor. Advertising is non-personal, as it is not directed to any single individual. Secondly, the sponsor i.e., the manufacturer or producer is identified as his name and address is always contained in an advertisement and he also bears all the cost involved in the process. Thirdly the producer can also promotes an idea regarding quality, design packing and pricing etc., of any product or services thus we can say advertising consists of all activities involved in presenting a sponsored message regarding a product, service or an idea.

1. The discrimination of the information concerning an idea, service or a product to compel action in accordance with the intent of the advertiser. 2. Any paid form of non-personal presentation of idea, goods or service by an identified sponsor. Role of Advertising: Advertising is an all-pervasive facet of most growing communities. It has important consequences for the advertisers who use it and individuals who are exposed to it however; its economic and social impact is a subject of continuous controversy. Features of Advertising: By looking to the meaning and definition of advertising we can sum up the following features of advertising. Non-personal presentation of message in advertising there is no face-to-face or direct contact with the customers. Paid form of communication in advertising the manufacturer communicates with prospective customers through different media like. Newspapers, boarding, magazines, radio, television etc. he has to pay certain amount for using some space or time in those media. Need for Advertising; Advertising is a way of communicating information to the consumer. Information that enables him or her to compare and choose from the product or services available. Advertising enables consumers exercise their right or free choice. Advertising is the most economical means by which a manufacturer or an institutional body can communicate to an audience, whether to sell a product or promote a cause or social welfare such as a civic drive or immunizations programme. Objectives of Advertising; Various Objectives of Advertising are as follows: 1. To Educate Customers: Advertisements are mainly used to educate the customers. If take the example of Dandi Namak on television it is said that Dandi Namak is good for health as is contains lodine. This message educates that iodine is good for health and Dandi Namak contains iodine. 2. To Create Demand for New Product: You read in newspaper that a new type of pen called Gel Pen is introduced in the market. Which is very economical and convenient in writing. This motivates you to buy the said pen. Similarly, many students like you shall also buy gel pen after coming to know about it through advertisement. This will create a demand for the product launched in the market.

3. To Retain Existing Customers: 4. To Increase sales: 5. To Assist Salesman:


Advertising Any paid form of non-personal presentation and goods or services by an identified sponsor.

promotion of ideas,

There are three goals of advertising. These goals are to inform, Persuade and Remind. Inform

Advertising Goals

Remind The major types for advertisement are


Newspapers, Television, Direct mail, Radio, Magazines, Internet, Outdoor (Billboards, blimps etc.,) Yellow pages, Newsletters, Brochures and Telephone. The traditional conceptual model for creating any advertising or marketing communications message is the AIDA Model get attention, hold Interest, arouse Desire and then obtain Action.

The AIDA Model

Action Desire Interest


Various Media of Advertising: Print Media: Newspapers: Periodicals: Electronic Media: Online Media: Internet is the latest method of communication and gathering information through Internet we can get information form all over the world within a fraction of second. Through Internet we can go to the website of any manufacturer or service provider and gather information. Sometimes when we do not have website addresses we can take help of search engines or portals. In almost all the search engines or portals different manufacturers or service providers advertise their product.

Sales promotion short-term incentives to encourage the purchase or sale of product or service. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers. Wholesalers, retailers or other organizational customers to stimulate immediate sales. These efforts can attempt to stimulate product interest, trial or purchase. Examples of devices used in sales promotion include coupons, samples premiums, point of purchase (POP) displays, contests, rebates and sweepstakes. Sales Promotion Strategies: strategy are allowances, buy-back guarantees, free trials contests, specialty advertising items, discounts, displays, and premium. There are three types of sales promotion strategies Push, Pull or a Combination of the two. Strategy Selected P U Depends on: P U

S H Product Life-cycle stage

Type of Product -Market &


Major Decisions in Sales Promotion: In using sales promotion, a company must follow these steps. 1. Establishing the Sales Promotion Objectives: 2. Selecting the Sales Promotion Tools: . Major Consumer Promotion Tools: Samples: Samples are offers of a free amount a product of service. Coupons: Coupons are certificates entitling the bearer to a stated saving on the purchases of a specific product coupons can be mailed, enclosed in other products or attached to them, or inserted in magazines and newspaper ads. Cash refund offers (rebates): Cash refund offers provide a price reduction after the purchase rather than the retail shop. Price Packs: Premiums: Premiums (gifts) are merchandise offered at a relatively low cost or free as an incentive to purchase a particular product. Prizes: Patronage Awards: Patronage awards are values in cash or in other forms that are proportional to one patronage of a certain vendor or group of vendors. Free Trails:



TABLE -1 1. The table showing Income analysis of respondents INCOME Less than 10,000 10,000 20,000 20,000 30,000 More than 30,000 Total NO.OF RESPONDENTS PERCENTAGE 40 40% 60 60% 0 0% 0 0% 100 100%

70 60 50 40 30 20 10 0 Less than 10,000 10,000 20,000 20,000 30,000 More than 30, 000

INTERPRETATION:The above table show that has covered different groups people having different levels of income. 40% of respondents have an income of less than 10,000 p/m, while 60% respondents are in the income group of 10,000-20,000.

2. The table showing Age details of respondents: Age in Years 18-25 25-35 35-45 45&Above Total No. of Respondents 30 40 24 6 100 Percentage 30% 40% 24% 6% 100%

50 40 30 20 10 0 18-25 25-35 35-45 45&above

INTERPRETATION:-The above table shows that it was covered above the 18 years old respondents. It is
clear in the above diagram that, 30% of respondents are aged between 18-25 years, 40% of respondents are aged

between 25-35 years, 24% of the respondents are aged between 35-45 years and remaining 6% of respondents are aged above 45 Years.

TABLE 03 03. The table showing other companies is considered as competitors to Hero Honda? OPINION Hero Hero NO.OF RESPONDENTS Honda 10 75 15 100 PERCENTAGE 10% 75% 15% 100%

(Achiever) Bajaj (Pulsar) TVS (Apache) Total

80 60 40 20 0 Hero Honda (Achiever) Bajaj (Pulsar) TVS (Apache)

INTERPRETATION:-The above table showing other companies which are considered as

competitors to Hero Honda 75% of the respondents are of the opinion that Bajaj Pulsar is the major competitor. After that TVs Apache 15% and Hero Achiever 10% are considered as competitors.



1) Income level of respondents : 40% of the respondents are less than 10000 60% of the respondents are between 10000-20000 0% of the respondents are between 20000-30000 0% of the respondents are More than 30000 2) In a KHAMMAM town dealer serve good. Spare parts are easily available. 3) Maximum of the respondents are feels that UNICORN is reasonable. 4) 60% of the respondents are feels that driving UNICORN is comfortable.

1. Most of the consumers of Hero Honda Vehicles are from income level of Rs. 10,000 to 20,000 2. By this study it is known that most of the consumers preferring only HERO HONDA VEHICLES. 3. Most of the users of HERO HONDA VEHICLES opined that, these vehicles are very easy to handle and most comfortable.

1) Since most of the respondents attributed their problem to the manufacturers, the company should take adequate steps in testing the vehicles before finally bringing it out to the dealer. So that the vehicle will give no problems to the customers on delivery. 2) The company should see that all the necessary parts of the vehicles are available at all their dealerships. 3) In the study some of the respondents are not satisfied with the service of the dealer. So that dealer is suggested to give the satisfactory service to the customers. 4) The dealer has to maintain sound relations with the customer. So he can increase the sales of the product. 5) Some of the respondents feel that the price of the UNICORN is high. It advised to decrease to the extent that a middle class people can also buy it. 6) The company may take steps to improve the mileage of the vehicle 7) Some of the respondent expressed that the cost of spare parts are comparatively high. It is advised to the manufacturer that the spare be made available at responsible price.


Name Age Place Location :

: : :

WEB SITES:1. http://www.wer.com// 2. career@hmsi-india.com