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INTRODUCTION
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The Britannica encyclopedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion engine (or, less often, by an electric engine). The motors on mini bikes, scooters, and mopeds, or motorized velocipedes, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder motorcycles have displacements of more than 1,300 cubic cm.
The automobile was the reply to the 19th century dream of self-propelling the horsedrawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle.
The first commercial design was a three-wheeler built by Edward butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufactures. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle designs to supercharged, multivalent engines mounted on aerodynamic, carbon-fibre reinforced bodywork.
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The Invention of the first two-wheelers is a much debated issue. Who invented the first motorcycle? may seem like a simple question, but the answer is quite complicated. Two wheelers owe their descent to the safety bicycle that is bicycles with front and rear wheels of the same size with a pedal crank mechanism to drive the rear wheel. Those bicycles, in turn descended from high-wheel bicycles. The high-wheelers descended from an early type of pushbike, without pedals, propelled by the riders feet pushing against the ground. These appeared around 1800, used iron-banded wagon wheels, and were called bone-crushers, both for their jarring ride, and their tendency to toss their riders. Gottlieb Daimler (who later teamed up with Karl Benz to form the Daimler-Benz Corporation) is credited with building the first motorcycle in 1885, one wheel in the front and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the iron-banded wooden-spoke wagontype, and it definitely had a bone-crusher chassis! These two wheelers were powered by a single-cylinder Otto-cycle engine, and may have had a spray-type carburettor. (Wilhelm May Bach, Daimlers assistant, was working on his invention of the spray carburettor at the time). If two wheels with steam propulsion can be called a motorcycle, then the first one may have been American. One such machine was demonstrated at fairs and circuses in the eastern US in 1867. Sylvester Howard Roper of Roxbury, Massachusetts, built this. There is an existing example of a Roper machine, dated 1869. A charcoal-fired two-cylinder engine, whose
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1.4 INTRODUCTION TO TWO-WHEELER INDUSTRY: India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, API dominated the scooter segment; Bajaj Auto later overtook it. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-wheeler industry in the country has been able to
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1.5 INTRODUCTION TO INDIAN TWO-WHEELER INDUSTRY: Indian Two-Wheeler Industry: A Recent Perspective, According to FADA (Federation of Automobile Dealers Association): Dripto Mukhopadhyay, Associate Fellow, NCAER1 Automobile is one of the largest industries in global market. Being the leader in product and process Technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well-directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. The Automobile Industry in general and two wheeler industry in particular has shown a tremendous growth over the recent years. According to the Society of Indian Automobile Manufactures (SIAM) the industry has grown by 32.69% in the year 2009/2010.Two Wheeler segment as a whole during the year 2009/10 grew by over 30.51%. This growth has been due to the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power of rural people.The two-wheeler industry was able to achieve the record performance
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Though the metal bodied geared scooters have fallen out of favor of the Indian two-wheeler user their upward trend in growth has been due to rise in the sales of scooters and Motor scooters. Bajaj Auto has been able to sell 383,776 units in the year 2009/2010 of two wheelers which don't include motorcycles. They have shown a negative trend in the two wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost its supremacy in the Scooter and Moped segment as they have shifted focus to motorcycles. HMSI currently occupies the leading position in the scooters segment with a market share of 51% (April-January 2010) and drawing on its flagship brand Activa (besides Aviator and Dio). It is followed by TVS (Scooty Pep+ and Streak), which has a market share of 22%. Motorcycles: 2005-06 6,210,599 2006-07 2007-08 2008-09 2009-10
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Mopeds: 2005-06 332,741 2006-07 355,870 2007-08 431,289 2008-09 453,446 2009-10 517,476
Mopeds, which were once the entry-level options in the two-wheeler, have been replaced by entry level or price category bikes which provide all the comfort and advantages of a motorcycle but at an affordable price. Thus it has not come as a surprise that mopeds have shown a negative growth over the recent years. TVS Company one of the pioneers of mopeds manufactures of India was able to sell about 3.09 lakh of mopeds during 2009-10. This trend is supposed to continue in the days to come, as the motorcycles race ahead other two-wheelers will find it difficult keep up with the pace of their growth. Trend in 2W Volumes by Category:
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The Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).
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Nature of Alliance Company Product Bajaj Auto Technological tie-up Kawasaki Heavy Industries Motorcycles Ltd, Japan Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers Technological tie-up Kubota Corp, Japan Diesel HHML KEL KEL Engines Joint Venture Honda Motor Co, Japan Motorcycles Technological tie-up Hyosung Motors & Motorcycles Tie up Machinery Inc. for Italjet, Italy Scooters
manufacturing LML Hero Motors and distribution Technological tie-up Daelim Motor Co Ltd Technological tie-up Aprilia of Italy Motorcycles Scooters
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Increasing rural penetration: Robust agriculture growth during the past few years along with pro-agriculture reforms has led to increased penetration of 2-wheelers in the rural areas.
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INTRODUCTION TO MARKETING: In earlier days, marketers could understand consumers through the daily experience of selling to them. But the growth in the size of the companies and markets has removed many
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What products and services do we buy? Why do we buy? How often do we buy? From where do we buy etc.? DEFINITION:
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IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS: 1. Consumer behaviour is helpful in understanding the purchase behaviour and
preferences of different consumers. As consumers we differ in terms of our sex, age, education, income, occupation, family set-up, religion, nationality, social status.
2. To successfully market to different market segments, the marketer needs appropriate
marketing strategies which we can design only when he understands the factors which account for these differences in consumer behaviour and tastes.
3. In todays world of rapidly changing technology, consumer tastes are also
characterized by fast changes. Consumer behaviour provides invaluable clues and guidelines for marketers on new technological frontiers which they should explore. For example- CTV in lieu of B/W TV.
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External Influences I N P U T Marketing Stimuli Product Price Promotion Channel of distribution Consumer Decision Making Buyer Characteristics PROCESS Psychological Personal & O U T P U T Cultural characteristics Consumer Decisions & Actions Product choice Brand choice Dealer choice Purchase timing Purchase amount -Process Buyer Decision Other Stimuli - Economic -Technological -Political -Social
DETAILED
MODEL
OF
FACTORS
INFLUENCING
CONSUMER
BEHAVIOUR:
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1. Psychological Stage: Motivation: When a need is sufficiently pressing, it directs the person to seek its satisfaction, it is known as motive.
MASLOWS HIERARCHY OF NEED:
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behave.
B. Informal Learning: In which we learn by imitating the behaviour of our parents,
things have to be done such as printing, dancing, singing etc. BELIEFS AND ATTITUDES: A belief is a descriptive thought that a person has about something. The belief that the customer has about a brand is important. Therefore it determine his behaviour towards buying and using the belief constitute the brand image and if the customer has the wrong belief he is likely to generate negative image about the brand. 1. PERSONAL FACTORS: Age & Life cycle Stage:
Age influences and buyers decision the need for different products and services changes with age.
Babies and children need product like milk powder, baby foods and toys. Young adults need- clothes, recreational and educational facilities, transportation and a host of other age and fashion related products.
Consumption behaviour is also influenced by the specific stage of the family life cycle.
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Lifestyles are defined as patterns in which people live; as expressed by the manner in which they spend money and time on various activities and interests. Lifestyle is a function of our motivations learning, attitudes, beliefs and opinion, social class, demographic factors, personality etc. 1. SOCIAL FACTORS:
Reference Groups:
The consumers decision to purchase and use certain products and services is influenced not only by psychological factors, his personality and life style, but also by the people around him with whom he interacts and various social groups he belongs to. A group is defined as two or more people who interact to achieve individual or common goals.
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In making a purchase decision the consumer goes through the five stages of buying process, and they are as follows: 1. Problem recognition 2. Pre-purchase information search 3. Evaluation of alternatives 4. Purchase decision
5. Post purchase behaviour
6. Disinvestment However, in case of routine purchases, the consumer may skip the second & third stages and straight away go the stage of purchase decision.
1. Problem recognition: the buying process starts with the buyer recognizing a need or
a problem
2. Pre-purchase information search: External & Internal.
Internal- refers to recalling relevant information stored in the memory. Externalrefers to deliberate and voluntary seeking of information, recognized the product/brand under consideration which can be known. 3. Evaluation of alternatives: The stage of the buying decision process gives the marketer a chance to modify his product offering in keeping with the relative importance attached to each attribute by various consumer segments, altering beliefs and attitudes about his own brand and calling attention to neglected product attributes.
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Consumer end up buying a brand which is not his most preferred because of Shopkeepers influence Preferred brand not available Attractive incentive on other brand
1. Post Purchase behaviour:
After purchasing the product if consumer finds that its performance/utility matches up to his expectation, satisfaction occurs. Customer may also strongly recommend the brand to others. However if the product is not up to his expectation, then dissatisfaction results. The customer may decide to stop buying other products of the company and inform people known to him/her about the poor quality performance of the product.
2. Disinvestment:
After using the product for certain years the consumer might need sum returns from that particular product. The value which he gets from the product by selling is called as disinvestment. It might be in monetary kind or so.
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Price is still the overriding factor in the purchasing decision. This explains why the price hike of Hero Honda has precluded its dominant emergence to the top despite its clear technical superiority.
2. FUEL EFFICIENCY:
Petrol prices being raised to sky, fuel efficiency has become an important parameter in the choice of the decision of the buyer. Middle class people usually see the fuel efficiency in purchase of a bike. High-class people wont mind that much about factor.
3. FASHION:
The inclination towards trendy vehicles with the speed and good looks has become noticeable. Especially in bikes class of vehicles, stylized instrumentation has become an important choice in the two-wheeler market.
4. RESALE VALUE:
The resale value of an old two wheeler vehicles has traditionally be an important factor in determining consumers choice. That is one reason why Bajaj and Hero Honda command handsome resale Value.
5.
ROAD GRIP:
In recent times road grip has also emerged as an important variable affecting the decision process. Young people always look for a road grip bikes. That is one of the reasons why Hero Hondas New Splendor hit in the market.
6. PRESTIGE:
It also influences the consumer buying decision. Usually Rich people look for a costliest or a stylish vehicle. They always go for a high product. They like to acquire unique vehicle just to maintain their prestige.
2. BRAND NAME:
This also plays a major role in consumer buying decision. Old and middle age people usually prefer to go Hero Honda or Bajaj and young prefer Honda because of their brand name, which has created good image in consumers mind by giving stylish motorcycle and scooters.
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To know the customer expectations regarding that particular bikes. To find out the respondents/consumer opinions about Hero Honda. To know the factors those are influencing consumers to buy Hero Honda bikes. To find out the effect on media, advertisements on consumers of Hero Honda bikes. To find out whether the consumers recommend Hero Honda to others. To give appropriate suggestions to company and enhance their performance.
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Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading available. It does not have to change his focus of direction, depending on the availability of new ideas and relationship among variables. Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a high degree of scientific skill on the part of the researcher.
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The primary data is that which details we collect first time from the market and also used first time in the research. We also say that the information is first time in the research decision. To collect the primary data questionnaire is prepared structure nondisguise questionnaire is prepared.
b) Secondary data:-
Secondary data are those data which are already collected by someone for some purpose and are available for the present study; secondary data are already collected by the companys records and other librarys books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire.
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B. SAMPLING PLAN: Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. A. Sample Site: The survey was conducted in Bangalore city only. B. Sampling Unit: It means Who is to be surveyed. Here target population is decided and it is who are interested to purchase Bike and sampling frame is developed so that everyone in the target population has known chance of being sampled. So the survey is conducted particularly in Bangalore City. C. Sample size: For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behaviour of bike. The sample size is 100 respondents. 2.8 RESEARCH INSTRUMENTS: Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is Questionnaire for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre-testing of questionnaire, I seen the reaction of respondents and suggestions required to make change in research instrument.
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Hero group was started by the four Munjal brothers, namely: Mr Satyanand Munjal, Mr Om Prakash Munjal. Late Mr Dayanand Munjal and Late Mr Raman Kant Munjal. Hailing from a small town called Kamalia, now in Pakistan in the year 1944 by establishing bicycle spare parts business in Amritsar. After independence and partition of India, they moved to Ludhiana and started a bicycle unit called Hero Cycles in 1956. By 1975, Hero cycles became the largest bicycle manufacturer in India. In 1984, Hero group joined Honda Motors of Japan to create Hero Honda Motors Limited which soon became one of the market leaders in motor-cycle sales in India. In 1986 Hero Cycles Limited entered the Guinness Books of World Records as the largest bicycle manufacturer in the world. By the year 2004, Hero Honda became the world' largest manufacturer of two-wheelers with over 48% market share in India. In year 2006, Hero Honda entered the scooter production with launch of its new model - Pleasure. After joint venture between the Hero Group and Honda Motor Company in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana.
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HERO HONDAS MANDATE: 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.
3.2 BOARD OF DIRECTORS: No. Name of the Directors 1 Mr. Brijmohan Lall Munjal 2 3 4 5 6 7 8 9 Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Sumihisa Fukuda Mr. Sunil Kant Munjal Mr. Suman Kant Munjal Mr. Takashi Nagai Mr. Yuji Shiga Mr. Pradeep Dinodia Designation Chairman & Whole-time Director Managing Director & C.E.O. Joint Managing Director Technical Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director
10 Gen. (Retd.) V. P. Malik 11 Mr. Analjit Singh 12 Dr. Pritam Singh 13 Ms. Shobhana Bhartia 14. Mr. M. Damodaran 15. Mr. Ravi Nath 16. Dr. Anand C. Burman
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Relationship Manager
Relationship Executive
Tele callers
Office assistant
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STAKEHOLDER TIES AT THE GRASSROOTS: Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones developed at the grassroots. The Company believes it has managed to bring an economically and socially backward region in Dharuhera, Haryana, into the national economic mainstream. An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education facilities for both adults and children-now nurtures a vibrant, educated and healthy community.The Foundation has adopted various villages located within vicinity of the Hero Honda factory at Dharuhera for integrated rural development. This includes: Installation of deep bore hand pumps to provide clean drinking water.
Constructing metalled roads and connecting these villages to the National Highway (NH -8).
Renovating primary school buildings and providing hygienic water and toilet facilities. Ensuring a proper drainage system at each of these villages to prevent water-logging. Promoting non-conventional sources of energy by providing a 50 per cent subsidy on biogas plants. Raman Munjal Vidya Mandir: The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-educational school with over 1200 students and 61 teachers. The school has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room, a well-stocked library and a computer center.
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Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the DelhiJaipur highway. RURAL HEALTH CARE: Besides setting up a modern hospital, the Foundation also regularly provides doorstep health care services to the local community. Free health care and medical camps are now a regular feature in the Hero Group's community outreach program.
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MARKET. BIKE IS
EVERY 30 SECONDS A SOLD IN INDIA. THE MODELS UNDER SPLENDOR ARE: SUPER SPLENDOR
SPLENDOR PLUS
SPLENDOR NXG
SPLENDOR PRO
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PASSION:
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es in Indian Market. Passion Sales are more in North India than the South. Most preferred by middle class people.
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GLAMOUR:
Glamour came into market few years back and is going on well in its segment. But could not make as effective as splendor or passion made. The models under Glamour are: Glamour
Glamour F1
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CBZ-XTREME:
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CBZ-Xtreme: It was introduced in the year 2008, already the Indian two wheeler markets had achieved the maximum growth and this made the product slightly
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KARIZMA:
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Karizma was introduced in India Market in the year 2003; it had held the pole position in sport segment. It was mostly preferred by youngsters and was later hauled by Bajaj and Honda respectively. The Models under Karizma are:
Karizma
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Year Event 1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 Hero Honda Motors Ltd. incorporated 1985 First motorcycle "CD 100" rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model - "Sleek" introduced 1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced 1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated 1998 2,000,000th motorcycle produced 1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal
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AWARDS
TO
THE
Y ea
r 20 Company of the Year awarded by Economic 10 Times Awards for Corporate Excellence 200809. CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor NDTV Profit Car & Bike Awards 2010 Two-wheeler Manufacturer of the Year
Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009 20 'Two-wheeler Manufacturer of the Year' by 09 NDTV Profit Car & Bike Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler Top Indian Company under the 'Automobile Two-wheelers' sector bythe Dun & BradstreetRolta Corporate Awards Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category
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"Bike Technology of the Year" - Glamour PGM FI "Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most Trusted Company, by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006.
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SALES PERFORMANCE: HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50 % NET PROFIT IN Q2, '08-09
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TERMINATION OF HERO AND HONDA JOINT VENTURE: In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda for R & D for new bike
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3.10 PROFILE OF THE DEALER: Majestic Mobikes Pvt ltd. Authorised dealer of Hero Honda Majestic Mobikes was established in the year 1985. From then, it is committed to excellence in serving all there esteemed customers. The sales team is made up of dedicated showroom and field executives who are professionally trained by Hero Honda Motors. They are guiding the customers through the entire sales process right from assisting in the choice of model, Colour and factors to handing a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The service centre is armed with the stock-of-the art equipment and is in line with world-class standards. The service team is technically qualified and trained to analyse and provide solutions adhering to Hero Honda care guidelines order to satisfy even the most demanding customers. The Majestic Mobikes dealership maintains a high standard of excellence in sales and services by sending its personnel for training and a regular basis to Hero Honda, to update them with the latest technological advances in the automatic world.
Vision: To achieve customer delight. SERVICE: The product owners of Hero Honda can service their scooters at their services counters, which are a state-of-the art facility. It incorporates the latest equipment and technology and
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SALES TURNOVER: Sales turn of all Hero Honda bikes in Majestic Mobikes is more than 11,500 vehicles per year. Departments of Majestic Mobikes:
1) Finance Department:
Financial management is many ways an integral part of the jobs of managers who are involved in planning, allocation of resources and control. The responsibilities for the financial management are dispersed throughout the organization. The key activities of financial management are: a) Looking at the accounts of the show room.
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Marketing is an organizational function and a set of the processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stake holders and making more sales. In marketing department many other sub departments are related they are: Service Department Sales Department Spare Parts Department Promotion Department
1) Human Resources Department:
Human resources management means employing people, developing their skills & resources, utilizing, maintaining & compensating their services in tune with the job and the organizational requirements with the view to contribute to the goals of the organization, individual & the society. Human resources are the total knowledge, skills, creative abilities, talents & aptitude of an organization. Of all the Ms in the management like material, machine, money, manpower, etc. Man is the most valuable assets and organization. Total Number of Workers & Staffs working in Majestic Mobikes is 83 Members. TABLE-1: Table showing Age of the Respondents:
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ANALYSIS: From the above table it is clear that, in between 18-20 years are 8%, 21-25 years are 42%, 26-30 years are 24%, 31-40 years are 20% and 41-50 years are 6%.
INFERENCE:
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GRAPH-1:
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ANALYSIS:
From the above table it is clear that Businessmans are 20%, Students are 38%, Professions are 18% and remaining 24% are others.
INFERENCE:
It is revealed that majority of the respondents are students and average is from the others & own business. Hero group must target Professionals more in order to enhance their overall sales.
GRAPH-2:
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YES NO TOTAL
64 36 100
ANALYSIS:
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It is revealed that majority of the respondents were having bike before purchase of Hero Honda Bike. This inference shows why Hero Honda is holding 70% market share in twowheeler segment.
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ANALYSIS:
From the above table, it reveals that 26 respondents had Honda, 20 respondents had Bajaj, 9 respondents had Yamaha and remaining 12 respondents had TVS motors before purchasing Hero Honda.
INFERENCE:
It reveals that majority of the respondents are from Honda and Bajaj. The respondents are not satisfied with their present company and so they have opted Hero Honda. This INFERENCE shows Hero Honda is better brand compared to others.
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ANALYSIS: From the above table it reveals that 28% opt for splendor, 10% opt for passion, 30% opt for Karisma, 14% opt for CBZ-Xtreme and remaining 18% opt for glamour. INFERENCE: It reveals that majority are opting for Karizma, followed by splendor. But the organization should shift the focus on Passion, CBZ-Xtreme and glamour to make more sales in this segment also.
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TABLE 6: Table showing the specialty of Hero Honda models, which cannot be found in any other models: SPECIALTY ASPECTS OF HERO HONDA GREAT LOOKS SUPERB MILEAGE UNIQUE FEATURES ECONOMICAL PRICE TOTAL 40 48 06 06 100 40% 48% 06% 06% 100 No. OF RESPONDENTS PERCENTAGE (%)
ANALYSIS:
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GRAPH-6:
Graph showing the specialty of Hero Honda models, which cannot be found in any other model:
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Table showing about the respondents preference towards Hero Honda: ATTIRIBUTES SUPERIOR MILEAGE BETTER TECHNOLOGY TRUSTED BRAND NEW MODELS/DESIGNS TOTAL No. OF RESPONDENTS 26 10 52 12 100 PERCENTAGE (%) 26% 10% 52% 12% 100
ANALYSIS: From the above table we can infer than 26% prefer superior mileage, 10% feel better technology, 52% feel Trusted brand and remaining 12% feel New models/designs. INFERENCE: It reveals that majority feels Hero Honda is trusted brand compared to others brands and so they are opting bike in Hero Honda. This shows positive sign for hero Honda but will have to maintain the same in the future too.
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GRAPH-7:
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ANALYSIS: From the above table we come to know that out of 28 respondents, 06 respondents feel maintenance cost is high, 18 respondents feel its economical and remaining 4 respondents feel its nominal. 4 respondents feel the price of the bike is high, 24 respondents feel its economical. INFERENCE: From the graph it reveals that majority i.e. 64% feels the maintenance cost is economical and can be managed and regarding the price of the bike also the respondents feel its economical. Thus we come to know that splendor is the most preferred brand in India.
GRAPH-8:
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TABLE-9:
ECONOMOCAL 06 08
NOMINAL 02 02
TOTAL 10 10
ANALYSIS: From the above table we come to know that out of 10 respondents, 2 respondents feel the maintenance cost is very high, 6 respondents feel its economical and remaining 2 respondents feel its nominal. Out of 10 respondents, 2 respondents feel the price of the bike is high, 8 respondents feel its economical and remaining 2 respondents feel its nominal. INFERENCE: It reveals that majority of the respondents feel the maintenance cost of the passion is economical and the price of the model is also economical. Thus we come to know that passion is an economical bike which can be affordable by middle class family.
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TABLE-10: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 14 HIGH 20 16 ECONOMOCAL 08 NOMINAL TOTAL 30 30
ANALYSIS:
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GRAPH-10:
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Table showing the attributes considered while purchasing CBZ-Xtrem Bike: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 HIGH 06 12 ECONOMOCAL 08 NOMINAL TOTAL 14 14
ANALYSIS: From the above table we come to know that out of 14 respondents, 6 respondents feel the maintenance cost is high and remaining 8 respondents feel its economical. Regarding the price issue 2 respondents feel its very high, and remaining 12 respondents feel its high. INFERENCE: It reveals that majority of the respondents feel that maintenance cost of CBZ-Xtrem is economical and the price factor tells us its high. If price of the bike is reduced or made economical we might see more sales in this aspect.
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TABLE-12:
Table showing the attributes considered while purchasing Glamour Bike: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 HIGH 06 12 ECONOMOCAL 10 04 NOMINAL 02 02 TOTAL 18 18
ANALYSIS:
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GRAPH-12:
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TABLE-13: Table showing did respondents test drive the model before purchase: TEST DRIVE YES NO TOTAL NO. OF RESPONDENTS 58 42 100 PERCENTAGE (%) 58% 42% 100
ANALYSIS: From the above table we can know that 58% had done test drive before purchase and remaining 42% did not do so. INFERENCE: It reveals that majority had a test drive before purchasing, but its better to the company if they can maintain 100% test drive option for the customers. As it maintains good customer relationship with the company.
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GRAPH-13: Graph showing, did respondents test drive the model before purchase:
Table-14: Table showing why respondents did not test drive before purchase:
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ANALYSIS: From the above table we can analyze that 24 respondents didnt know about the test drive option, 16 respondents did not opt by themselves and remaining 2 respondents feel its trustworthiness. INFERENCE: The majority did not know about the test drive option. So its recommended to the company that they offer a test drive option before the purchase.
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GRAPH-14: Graph showing why respondents did not test drive the bike before purchase:
Table-15: Table showing how respondents came to know about the Hero Honda bike:
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ANALYSIS: From the above table we can know that 2% from Newspaper, 66% from Friends, 20% from TV ads and remaining 12% from other sources. INFERENCE: We know that Hero Honda is spending a lot in advertisements but it has failed to reach the consumers. Majority have come to known by their friends. Hero Honda will have to increase its promotional methods.
GRAPH-15:
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Table-16: Table showing who motivated the respondents to buy the bike: FACTORS PARENTS FRIENDS/RELATIVES SALES PERSONNEL ADVERTISEMENT TOTAL No. OF RESPONDENTS 36 52 06 06 100 PERCENTAGE (%) 36% 52% 06% 06% 100
ANALYSIS:
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GRAPH-16:
Table-17:
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ANALYSIS: From the above table, we can know 86% recommend hero Honda and remaining 14% wont recommend Hero Honda. INFERENCE: It is revealed that the majority of the respondents wish to recommend others to buy the Hero Honda, so it can be said that most of the customers are satisfied with the performance of Hero Honda.
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Graph-17:
TABLE-18:
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ANALYSIS: From the above table 50% respondents feel Hrithik roshan, 28% Sachin Tendulkar, 14% M.S Dhoni and remaining 8% feel its Amitabh Bachchan. INFERENCE: It reveals that majorities are right, but its only 50% are aware of the brand ambassador of Hero Honda and remaining 50% are wrong. So hero Honda has to make it more effective in advertisement.
GRAPH-18:
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SHOWROOMS VISITED SRICHANDU MOTORS,HOSUR ROAD PRAKASH MOTORS,LALBAGH ROAD MILLENNIUM MOTORS,DOMLUR ROAD SAI MOTORS,BANASHANKARI NONE OF THE ABOVE TOTAL TABLE-19:
ANALYSIS: From the above table 74% visited majestic mobikes, 14% sai motors, 6% millennium motors, 4% Prakash motors and remaining sri chandru motors.
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Graph-19:
TABLE-20:
Table showing the respondents attitude towards availability of models at dealers showroom:
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ANALYSIS: From the table we can infer that, 48% feel the availability of models is excellent, 42% feel its good, 8% feel its average and remaining 2% feel its poor. INFERENCE: It reveals that majority of the respondents feel i.e. 48% feel the availability of the models are very good and are satisfied with the dealers and 42% feel good and the availability factor. This shows a very good sign for the dealers. It should try to improve more in this regard and never let down this aspect is future.
GRAPH-20:
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TABLE-21:
Table showing the respondents attitude towards sales executive response at dealers showroom: SALES EXECUTIVE RESPONSE EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 02 32 54 15 100 PERCENTAGE (%) 02% 32% 54% 15% 100
ANALYSIS:
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GRAPH-21:
Graph showing the respondents attitude towards sales executive response at dealers showroom:
Table-22:
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ANALYSIS: From the above table we can infer that, 0% feel its excellent, 24% feel its good, 46% feel its average and remaining 30% feel its poor with the services rendered before purchase. INFERENCE: It reveals that majority of the respondents feels the services are not up to the mark. Only 46% feels its an average and remaining 54% are not satisfied with the services aspects of the dealers. If the dealers increase the service aspects the customers will be satisfied and dealers can capture the customers values.
Graph-22:
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TABLE-23:
Table showing the respondents attitude towards infrastructure of dealers showroom: INFRASTRUCTURE EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 20 56 20 04 100 PERCENTAGE (%) 20% 56% 20% 04% 100
ANALYSIS:
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GRAPH-23:
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ADDITIONAL FEATURES HELMET LOCK BUZZER INDICATOR TEFLON COATING ENGINE GUARD TOTAL
ANALYSIS: From the above table we can infer that 8% respondents look for Helmet lock, 10% respondents look for buzzer indicator, and 36% respondents want Teflon coating and remaining 44% need engine guard. INFERENCE: From the above analysis we can interpret that most of the respondents need ENGINE GUARD as additional accessory with the bike. So the dealers should provide Engine guard along with the bike.
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TABLE-25:
Table showing the respondents opinion about the split up of HERO and HONDA: IMPACT ON HERO YES NO TOTAL NO. OF RESPONDENTS 88 12 100 PERCENTAGE (%) 88% 12% 100
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ANALYSIS:
From the above table we can know that 88% of the respondents say it has impact on Hero group and remaining 12% respondents says no impact on Hero group. INFERENCE: Through this analysis we got to know most of the respondents feel that there will be certain impact on Hero group after the split up. The hero group will have to improve its technological aspects and re-modify its brand.
GRAPH-25:
Graph showing the respondents opinion about the split up of HERO and HONDA:
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5.1
To know the customer expectations regarding that particular bikes. To find out the respondents/consumer opinions about Hero Honda. To know the factors those are influencing consumers to buy Hero Honda bikes. To find out the effect on media, advertisements on consumers of Hero Honda bikes. To find out whether the consumers recommend Hero Honda to others. To give appropriate suggestions to company and enhance their performance.
5.1
This study is aimed at providing HERO HONDA at MAJESTIC MOBIKES PVT LTD. (Authorised dealer of Hero Honda) with an insight on the buying behaviour of consumers and its patterns regarding Hero Honda bikes as well as the customers response and awareness towards the brand, products, services and other aspects of Hero Honda
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5.3 FINDINGS: 1. Being the capital city of Karnataka, Bangalore city has the potential for bikes. Nowadays youths middle age and their preference is towards Hero Honda Bikes, with stylish design and increased mileage options.
2. Most popular bikes in Hero Honda are Karizma and Splendor.
3. 48% of the respondents tell Hero Honda bikes have superb mileage than other company bikes. 4. Majority of the Hero Honda buyers are Students and other occupations. 5. 42% of the respondents did not test drive their models before purchase. 6. 57.14% of the respondents did not know the test drive option at all. 7. 66% of the respondents came to know Hero Honda through Friends. 8. 52% of the buyers were motivated by their friends/relatives to buy Hero Honda. 9. 86% of the buyers will recommend Hero Honda bikes to others.
10. 74% of the respondents are satisfied with Majestic Mobike Dealer.
11. 48% of the respondents feel excellent about availability of models at dealers showroom.
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people (21-40 years). The preference levels of other age groups are rather low because of the safety concern. 15. 64% of the respondents are having/had bike. 16. 31.25% are Loyal to Hero Honda Brand. 17. 68.75% of the respondents are not very satisfied with their company bike which they had/have. 18. 52% of the respondents feel Hero Honda is a trusted brand than others.
19. 64% and 85.71% of Splendor product buyers feel it has economical maintenance cost
pricing respectively.
21. 66.6% and 53.3% of Karizma product buyers feel it has High Maintenance cost and
price respectively.
22. 57.14% and 87.71% of CBZ-xtrem buyers feel it has economical maintenance cost
and high pricing respectively. 23. 55.55% and 66.66% of Glamour buyers feel it has an economical maintenance cost and high pricing respectively. 24. Only 50% of the respondents know the Brand ambassador of Hero Honda. 25. 30% of the respondents feel poor towards services rendered before purchasing a bike. 26. 56% of the respondents feel good about the infrastructure of the dealers showroom. 27. 88% of the respondents feel split up of hero and Honda will have effect on hero group in future.
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5.4 CONCLUSION:
Indian 2-wheeler industry is the second largest in Asia after China. After the merger with Honda Motors the main focus of Hero group has been to capture the Indian Market through its Product which are Best In terms Of Style, Design and mileage and other aspects and it is trying to achieve more target of which it has laid down for the coming years. Young generation and middle aged people are more interested in buying Hero Honda. Especially students are more buyers of Hero Honda as it had good features, styles, designs and mileage aspects. Hero Honda has very good loyal customers. This loyalty is based on the performance of Hero Honda. Most of the two wheelers are not satisfied with the model which they had/have, so they are opting Hero Honda as their new model. Splendor and Karizma are the most preferred models in Hero Honda, as it had superb mileage and great looks respectively. Why consumers are choosing Hero Honda are because of the mileage factor. Today fuel price are raising and middle class people cannot afford costly bikes with less mileage. Hero Honda is the company with provides both style as well as mileage. Majority of the respondents feel it is much trusted brand compared to other companies. Hero Hondas pricing strategy is economical and can be affordable by common man as well. In a country like India where customer generally appreciates mileage it becomes
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6.1 SUGGESTIONS: After studying the survey results some important suggestion can be evolved. In the questionnaire a questions on Hero Honda and its products were discussed. Some of the respondents have given very good response towards those. Now Hero Honda should look after its improvement with changing market and advertisement policy in order to bring the Bikes in to a still more new attractive and stylish model with all extra ordinary qualities. The Suggestions are follows: 1. Youths are more attracted and impressed by the performance of Hero Hondas products, so they prefer more towards Hero Honda than other two wheelers company, so the advertisement and sales promotion should be targeted primarily towards them in an effective and efficient manner. 2. Hero Honda should also advertise their models frequently in TV media in a proper manner to create the awareness about the new models and attract some more consumers.
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additional features and additional accessories with the bike like, Helmet lock, buzzer indicator, Teflon coating and engine guard.
4. Hero Honda should reduce the pricing aspects of Karizma, CBZ-xtrem and Glamour
for better sales in these products and this will definitely increase the sales. 5. Hero Honda should always keep track with the uncertain changing trend and fashion and come up with still more stylish Bikes. 6. Hero Honda should come up with new products like mopeds and should also come up with sports models.
7. Hero Honda should increase its features in all the models like, displays, buttons and others aspects to enhance its sales.
8. Hero Hondas Karizma has a high pricing, if they can reduce its price there will be
9. The dealers should recommend the customers for opting a test drive before purchase
as customers will not know about this service. 10. Hero Honda should come up with new advertising strategy.
11. Only few respondents know about the Brand ambassador of Hero Honda, they should project in a proper manner for the awareness. 12. The dealer should improve the sales executives response towards customers as to maintain a good relationship.
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