A Study ON: "Brand Image of Hero Honda"

Brand image of Hero Honda
A
STUDY
ON
“Brand Image of Hero Honda”
Research Project Report
Submitted by Guided by
Nitin Kumar Tiwari Mr. Nikhilesh Kariya
Roll No. 3435 (H.O.D)
MBA 2nd SEM MBA Department
Year-2008/09
Department of Management
R.C.E.T Bhilai (C.G)
R.C.E.T. Bhilai 1
Title
“Brand Image of Hero Honda”
DECLARATION
R.C.E.T. Bhilai 2
I, Nitin Kumar Tiwari a student of MBA II Semester at

Rungta College of Engineering & Technology hereby declare that this research
report under the title “Brand Image Of Hero Honda” is the record of my
original work under the guidance of Mr. Nikhilesh Kariya (HOD) Dept. of
MBA, R.C.E.T Bhilai .This report has never been submitted to anywhere else
for award of any degree or diploma.
Place: Bhilai
Date:06/04/09
Department of Management
R.C.E.T Bhilai (C.G.)
Certificate
R.C.E.T. Bhilai 3
This is to certify that Mr. Nitin Kumar Tiwari a student of MBA II- SEM at
our institute under my guidance and supervision has carried out this Project
work under title “Brand Image of Hero Honda”. This Research Project Report
is an original one.
Place: Bhilai
Date: 06/04/09
(Project Guide)
Mr. Nikhilesh kariya (HOD)
Department of management
R.C.E.T Bhilai
R.C.E.T. Bhilai 4
ACKNOWLEDGEMENT
Rarely does anybody get the opportunity to acknowledge some who has
really helped in the development of work, helped to grow in a new field and
motivate towards the dimension of the some. I am extremely glad to state that
today I have this opportunity.
I wish to express my sincere gratitude to Mr. Nikhilesh Kariya (H.O.D.)

and also Mr. A. Jagdeesh (Director RCET), under whom I had under taken this
project. Extended full cooperation in completion of this project.
R.C.E.T. Bhilai 5
Table of content
Chapte Topic Page No.

r No.
01- Introduction 07
Scope of the study 08
Statement of problem 09
Objective of the study
02- Research methodology 08

Research design 09
Sampling plan 10
Hypotheses 11
Limitations 12
03- Organizational profile 13

Hero Honda mission 14
04- Main text
05- Analysis & Interpretation of Data
06- Findings & Conclusions
07- Suggestions
08- Questionnaire
Bibliography
R.C.E.T. Bhilai 6
INTRODUCTION
In 1984-85 (Hero Honda Motor Limited) HHML by the collaboration of

hero Honda limited and Japanese company Honda Motors Limited. The first 100
cc with a stoke motor cycle is made by Hero Honda Limited in India.
HHML (Hero Honda Motor Limited) has two plants for the
manufacturing the different model of Hero Honda motorcycle.
1. Gurgoan
2. Dharuhera.
Hero Honda the company and reflect one of the most outstanding and
inspiring stories of success in corporate India.
In 60th decade several motorcycle were running in the Indian roads

those are sunbeam, AIS, Triumph, BBA, and Royal Enfield from those motor
cycle only Royal Enfield has existence in motor cycle market.
After 60th decade some other motorcycle and scooter had been launched
in Indian two wheeler market those are Rajdoot, Java, Vespa and Lamrata etc.
Indian waitressed the first spate of modernization, in two wheeler

industries in 1984-85, during that period piaggio sauntered the Indian market in
a joint venture with lohia machines and our major Japanese motor cycle
manufacture set up joint venture companies to produce 100 cc motor cycles for
the first time.
R.C.E.T. Bhilai 7
SCOPE OF STUDY
This study enables the Company to know what the consumer expects
from a Company and also help in exploring the reason for loyalty of the
consumer towards the particular company. This research helps the company to
think about its marketing strategies.
R.C.E.T. Bhilai 8
STATEMENT OF PROBLEM
Determining brand image, sales and service effectiveness of Hero Honda.
I) Analysis potential customers of different two-wheeler.
II) How to enhance Hero Honda market.
III) Bugging perception PF consumers of Hero Honda in comparison to

other brand.
R.C.E.T. Bhilai 9
Objectives
1) To know the market share of Hero Honda.
2) To know the perception of customers regarding bikes.
3) To determine the customers satisfaction regarding bikes.
4) To determine the factors influencing the choice of customers regarding

bikes.
R.C.E.T. Bhilai 10
OPPORTUNITIES
Consumer has the perception that it is a good bike but if proven that it is a
best bike then sales could increase and market share could be enhanced.
Hero Honda offers their customers best quality in economic price so that
people rely on quality and performance of the Hero Honda.
Being Indian consumers have the perception of getting its spares parts easily
and on cheaper price. This enhanced its market share because people
opportunities for bike, which are easily repairable at cheaper price.
R.C.E.T. Bhilai 11
RESEARCH METHODOLOGY
METHODOLOGY
The study was conducted in Durg – Bhili region. For the study two questionnaires
were formulated and administered to the respondent. Questionnaire was open
ended. The medium of this questionnaire was English. The Questionnaire was
administered face to face with respondents. Some of these were filled up after a
small conversation relevant to the subject of study.
DATA COLLECTION METHOD
Primary Data: -
The primary data for the study was collected by personally administering the
questionnaire to respondent and observation.
Secondary Data: -
The secondary data for the study was collected for other information from
books, internet and Hero Honda Magazines.
R.C.E.T. Bhilai 12
RESEARCH DESIGN
Every research project conducted scientifically has a specific framework

for guiding and controlling data collection. This framework is called “Research
Design”
A research design is the specification of methods and procedures for

acquiring the information needed to structure or to solve problem. It is the
overall operational pattern or framework of the project that stipulates what
information to be collected from which sources by what procedures. The major
function of research design is to ensure that the required data are collected
accurately and economically.
The type of study, which I will, undertake in a conclusive, descriptive

study. As under the conclusive study, hypothesis is designed and information is
collected from a representative sample of components, then information
collected is analyzed by means of tables and graph.
SOURCE OF INFORMATION
The source of information for my research work was both through

primary and secondary data. I used more of primary data because of its
originality and secondary data, where collection of primary data not possible.
R.C.E.T. Bhilai 13
SAMPLING AND SAMPLE SIZE
SAMPLING
The sample for the study is confined to people using different models of
motorcycle in Durg - Bhilai region.
Sampling size of 50 people were taken and interviewed for the study of
the sampling was done through random sampling. The sample size was divided
into two groups.
DEFINING THE POPULATION
GROUP -I
Element: User of Hero Honda

Sampling Size: 50
Extent: Durg-Bhilai
Time: 01 mar to 31 mar.
GROUP -II
Element: User other than Hero Honda

Sampling Size: 50
Extent: Durg-Bhilai
Time: 01 mar to 31 mar
R.C.E.T. Bhilai 14
R.C.E.T. Bhilai 15
R.C.E.T. Bhilai 16
R.C.E.T. Bhilai 17
LIMITATION OF THE STUDY
Any study is subjected to constraints like time, effort, cost, raw material etc.
This study was conducted under some limitations.
 The sample size of fifty respondents for the consumer survey is very
small.
 The time given for survey i.e. one month is too less for the study.
 The study is spread in Durg - Bhilai region because survey in all the
areas is very time consuming.
 The sample was collected using connivance – sampling techniques. As

such result may not give an exact representation of the population.
R.C.E.T. Bhilai 18
Hero Honda's company profile
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 20 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! 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 its three globally
Benchmarked manufacturing facilities. Two of these are based at Dharuhera and
Gurgaon in Haryana and the third state of the art manufacturing facility was
inaugurated at Haridwar, Uttrakhand in April this year. These plants together are
capable of producing out 4.4 million units per year. 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 stockiest
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 only helped Hero Honda understand its customers and deliver value at
different price points, but has also created a loyal Community of brand
ambassadors.
Having reached an unassailable pole position in the Indian two Wheeler

market, Hero Honda is constantly working towards consolidating its position in
the market place. The company believes that changing demographic profile of
India, increasing urbanization and the empowerment of rural India will add
millions of new families to the economic mainstream. This would provide the
growth ballast that would sustain Hero Honda in the years to come. As
Brijmohan Lall Munjal, the Chairman, Hero Honda Motors Succinctly points
out, "We pioneered India's 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.''
R.C.E.T. Bhilai 19
HERO HONDA'S MISSION
Hero Honda’s 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.
R.C.E.T. Bhilai 20
SPECIFICATION
HERO HONDA (PASSION)
Engine: 4 stroke, single cylinder, air cooled, OHC
Displacement: 97.2 cc
Max power: 12.8 Ps 8000 rpm
Wheel base: 1235 mm
Ground Clearance: 160 mm
Fuel tank capacity: 12.8 ltr (1.1 reserves)
Types of brakes (Front): Drum version (130 mm .dia.)

(Rear) – drum (130 mm.dia.)
Carburetor: Side draft type (with IPSC system)
Engine oil quantity: 900 ml
Tyre size (Front) : 2.75 X 18 – 42 P

(Rear) – 100 190 X 18-36 P
Ignition: Electronic CDI
Max Speed: 120 Kmph
Final Drive: Roller Chain
Head light: Halogen Bulb 35 W / 35 W
R.C.E.T. Bhilai 21
WORKSHOP PROCESS
(1) When vehicle comes to the watchman check Vehicles number on the
gate.
(2) Prepare job Card with complete details of complain and warranty/
paid and complete detail of vehicles.
(3) Job Card entered to the particular mechanic after completing work.
(4) Washing the vehicles.
(5) Final Check up of the vehicles and delivery the vehicles to the
customers.
(6) Mechanic is available to bring the vehicles from workshop to

customer places.
R.C.E.T. Bhilai 22
SHOW ROOM ACTIVITIES
The name of the show room with sales, spares and service station is
chauhan Automobiles Durg. This show room is well design and very attractive.
In this show room well designed and stand keep the different model of Hero
Honda bikes to attract people.
For the purpose of offer sales service a sell equipped and modernized
work shop is there which certain all modern equipment to repair and
overhauling the Hero Honda bikes.
There are employees are engaged in this show room in which 1

General Manager, 1 Sales Manager, 3 Accountant, 3 Carrier, 10 in Sales Selection,
3 in audit section, 3 in Spare part counter, 2 in Godown, 5 for marketing, 3 for
Service, other 15 Mechanics. All staff is well behaved, helpful and co-operative.
R.C.E.T. Bhilai 23
SERVICE POLICY
Normal Warranty:
6 months from the sales or 7,500 kilometers, which is earlier?
Special Warranty Engine:

2 yrs from the date of sale or 30,000 kilometers, which is earlier?
Free Service:
Each Hero Honda buyer shall be entitled to six free services. The same can be
availed through free service coupons provided in the owner’s manual.
Free Service Schedule:
1st Service 500-750 kms 30 days
2nd Service 2500-2800 kms 90 days
3rd Service 5000-5500 kms 180 days
4th Service 7000-7500 kms 210 days
Through availing or individual free service is not limited by time, it may be

noted that all the six service have to be availed within one year of date.
R.C.E.T. Bhilai 24
SWOT ANALYSIS
STRENGTH-
Corporate image of Hero Honda can be encased.
 Brand Image: Hero Honda is a well-established brand name in the

market. Consumers have a good image and perception about its product.
 Technical superiority: Hero Honda proved itself as a role model in its

market.
 The biggest strength of Hero Honda is to passion plus and splendor

plus that is proving itself as a role model in its market.
 Customer’s satisfaction: Its existing customer is completely satisfied with

the Hero Honda and feels proud to own their own Hero Honda.
 Economical in the long run.
 People (non-customer) think it is a good motorcycle.
R.C.E.T. Bhilai 25
THREATS
There is a major threat from company like Bajaj, which is coming with
heavy publicity and good scheme for customers.
Old brand like Yamaha also a measure threat for Hero Honda because
of its good image pick-up.
R.C.E.T. Bhilai 26
WEAKNESS
Dealer network is very poor particularly in Raipur Distt.
Marketing strategy and the marketing efforts are not so aggressive like
they have to be for the coming tough competition. Now it should be realized
that it is not neck-to-neck competition but a cutthroat competition.
After sale service and the workshop service are not up to the mark.
Customer is not fully satisfied with the showroom facilities.
Always remember one satisfied customer creates one prospective

customer but one dis-satisfied customer will break 10 prospective customers.
R.C.E.T. Bhilai 27
Analysis & Interpretation of Data
Graph-01
Which bike you drive?
18
16
14
12
10
0
Hero Honda Bajaj T.V.S. Other
R.C.E.T. Bhilai 28
Graph-02
In which family income level do you fall?
25
20
15
10
0
1,00,000 2,00,000 3,00,000 4,00,000
R.C.E.T. Bhilai 29
Graph-03
How do you come to know about this bike?
30
25
20
15
10
0
Newspaper Television Megazine
R.C.E.T. Bhilai 30
Graph-04
For what purpose do you use your motorbike?
18
16
14
12
10
0
Office use Personal use Study purpose Other
R.C.E.T. Bhilai 31
Graph-5
In your motorbike what feature you most want?
16
14
12
10
0
Price Mileage Speed Look
R.C.E.T. Bhilai 32
GRAPH-06
In motorbike why you purchased Hero Honda because in market various bikes
are available?
Series 1
25
20
15
10
0
Quality Features Price Relaibility
R.C.E.T. Bhilai 33
Graph-07
After purchase this bike how you feel it’s more reliable yes or not?
Series 1
30
25
20
15
10
0
Yes No No Comments
R.C.E.T. Bhilai 34
Graph-08
You want to add some new features, or you are satisfied?
Series 1
25
20
15
10
0
Satisfied Not satisfied Add new features
R.C.E.T. Bhilai 35
Graph-09
Have this bike is according to your requirement?
25
20
15
10
0
yes No No comments
R.C.E.T. Bhilai 36
Graph-10
How you say about the maintenance?
30
25
20
15
10
0
Costly No maintenance Least
maintenance
R.C.E.T. Bhilai 37
Graph-11
How you say about its look and styles?
25
20
15
10
0
Good Bad Average
R.C.E.T. Bhilai 38
Graph-12
You want to give any advice or suggestions about its present features?
25
20
15
10
0
Yes No No comments
R.C.E.T. Bhilai 39
Graph-13
Are you satisfied with the customer service of your bike?
35
30
25
20
15
10
0
Yes No
R.C.E.T. Bhilai 40
Graph-14
Are you satisfied with the showroom of your bike?
40
35
30
25
20
15
10
0
Yes No
R.C.E.T. Bhilai 41
Graph-15
If any company launch new bike you purchase or not?
30
25
20
15
10
0
Yes No
R.C.E.T. Bhilai 42
Major Findings
1. Hero Honda enjoying the highest brand equity.
2. In the mind recall Hero Honda get the highest attention in
comparison to its competitors.
3. Awareness about advertising of motorcycle is very high. Television,
newspaper and hoarding are main source of advertisement.
4. The corporate image of Hero Honda is very high.
5. Hero Honda has strong positive image.
6. Customers satisfaction is very high i.e. 96 %.
7. Most of the people who have a Hero Honda motorcycle, they took
it to the service station or maintenance and repairing.
8. The people of age group 8-48 mostly prefer Hero Honda bikes.
9. Most people in income group 1000-5000 prefer to purchase moped
and people in the group 5000-15000 prefer to purchase motorcycle
and scooter and the people whose monthly income is above 15000
prefer to purchase four wheelers.
10. Most of the people want power, style, good look and good mileage
in their motorcycle.
R.C.E.T. Bhilai 43
CONCLUSION
Our objectives of finding the brand image, sales and service effectiveness of Hero
Honda. The conclusion drawn from the study says:
 Hero Honda enjoying the high brand equity.
 Market share of any brand mainly depends upon good profit margin,
aggressive advertisement, best quality and prompt supply, for improving market share
a company should improve above factor.
 We should implicit some scheme so as to attract the potential customers of our

product. Some suggestions are given further in the report.
 Mostly 18-48 yrs age groups prefer Hero Honda.
 Most of the people want power, style, and good mileage in their motorcycle.
R.C.E.T. Bhilai 44
PREFACE
The topic chosen by me for my project research is “Brand Image of

Hero Honda”. The two – wheeler market specifically in the stylish motorcycle.
At present Hero Honda is market leader in Indian market.
Today there are various companies coming to the Indian market and
this certainly will exist a cutthroat competition in this field. I have chosen
Hero Honda as the topic essence of my project. Today two – wheeler consumer
due to new manufacturing entrant has started getting a wide choice while
buying one. These gave to consider the facility provided by the two - wheeler.
The price, mileage, maintenance and service etc while buying a two - wheeler.
A normal customer is quit puzzled and faces for a even sometime huge
problems in deciding which bike to buy. I realized the problem and decided to
take this up as a challenge and provided answer to as what is the requirement
of Hero Honda.
R.C.E.T. Bhilai 45
SUGGESTION
 Service provided by the service station is so expensive so try to reduce

the cost of service to get more popularity between all two wheelers.
 Try to reduce the cost of spare parts.
 At present television and newspaper are most effective media, so pay

more attention toward newspaper for more publicity in Durg-Bhilai
region.
 Instead of giving black and white advertisement, colored advertisement

should be proffered.
 Customer satisfaction level is moderate and tries to increase customer

satisfaction.
 Hero Honda should develop a strong transportation infrastructure to

increase immediate delivery.
 Inter personnel communication skill should be developed with their

customer to get continuous feedback.
R.C.E.T. Bhilai 46
QUESTIONNAIRE
Q.No.1- Do you have any bike?
Yes No
Q.No.2- Which bike you drive?
Hero Honda Bajaj
T.V.S Other
Q.N0.3- In which family income level do you fall?
1, 00,000 2, 00,000
3, 00,000 4, 00,000
Q.No.4- How do you come to know about this bike?
Newspaper Television Magazine
Q.No.5- For what purpose do you use your motor bike?
Office use Personal use
Study purpose other
Q.No.6- In your bike what feature you most want?
Price Mileage
Speed Look
Q.No.7- In motorbike why you purchased Hero Honda because in market

various bikes are available?
Quality Features
Price Reliability
R.C.E.T. Bhilai 47
Q.No.8- After purchase this bike how you feel it’s more reliable?
Yes No No Comments
Q.No.9- You want to add some new features or you are satisfied?
Satisfied Not satisfied Add some features
Q.No.10- Have this bike is according to your requirement?
Yes No No Comments
Q.No.11- What you say about the maintenance?
Costly No maintenance Least maintenance
Q.No.12- What you say about its look and styles?
Good Bad Average
Q.No.13- You want to give any advice or any suggestion about its present
Features?
Yes No No Comments
Q.No.14- Are you satisfied with the customer service of your bike?
Yes No
Q.No.15- Are you satisfied with the showroom of your bike?
Yes No
Q.No.16- If any company launch new bike you purchase or not?
Yes No
Name of the respondent
Sex M/F
Age 0-20 20-40 40-Above
Qualification
R.C.E.T. Bhilai 48
BIBLIOGRAPHY
 Marketing management by
Philip Kotler
 Research Methodology by
C.R.Kothari
 Marketing Research by
Dr.D.D.Sharma
 Fundamental of Marketing by
William J. Stantan,
Michael J. Etzd
 www.herohonda.com
 www.twowheeler.com
 www.extrememachines.com
R.C.E.T. Bhilai 49

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Brand image of Hero Honda

Research Project Report

“Brand Image of Hero Honda”

I, Nitin Kumar Tiwari a student of MBA II Semester at

I wish to express my sincere gratitude to Mr. Nikhilesh Kariya (H.O.D.)

Chapte Topic Page No.

02- Research methodology 08

03- Organizational profile 13

04- Main text

05- Analysis & Interpretation of Data

06- Findings & Conclusions

In 1984-85 (Hero Honda Motor Limited) HHML by the collaboration of

In 60th decade several motorcycle were running in the Indian roads

Indian waitressed the first spate of modernization, in two wheeler

Determining brand image, sales and service effectiveness of Hero Honda.

I) Analysis potential customers of different two-wheeler.

II) How to enhance Hero Honda market.

III) Bugging perception PF consumers of Hero Honda in comparison to

1) To know the market share of Hero Honda.

2) To know the perception of customers regarding bikes.

3) To determine the customers satisfaction regarding bikes.

4) To determine the factors influencing the choice of customers regarding

DATA COLLECTION METHOD

Every research project conducted scientifically has a specific framework

A research design is the specification of methods and procedures for

The type of study, which I will, undertake in a conclusive, descriptive

The source of information for my research work was both through

SAMPLING AND SAMPLE SIZE

DEFINING THE POPULATION

Element: User of Hero Honda

Element: User other than Hero Honda

LIMITATION OF THE STUDY

This study was conducted under some limitations.

 The sample was collected using connivance – sampling techniques. As

Hero Honda's company profile

Having reached an unassailable pole position in the Indian two Wheeler

HERO HONDA'S MISSION

Hero Honda’s mission is to strive for synergy between technology,

This mission is what drives Hero Honda to new heights in excellence

HERO HONDA (PASSION)

Engine: 4 stroke, single cylinder, air cooled, OHC

Max power: 12.8 Ps 8000 rpm

Wheel base: 1235 mm

Ground Clearance: 160 mm

Fuel tank capacity: 12.8 ltr (1.1 reserves)

Types of brakes (Front): Drum version (130 mm .dia.)

Carburetor: Side draft type (with IPSC system)

Engine oil quantity: 900 ml

Tyre size (Front) : 2.75 X 18 – 42 P

Ignition: Electronic CDI

Max Speed: 120 Kmph

Final Drive: Roller Chain

Head light: Halogen Bulb 35 W / 35 W

(4) Washing the vehicles.

(6) Mechanic is available to bring the vehicles from workshop to

SHOW ROOM ACTIVITIES

There are employees are engaged in this show room in which 1

Special Warranty Engine:

Free Service Schedule:

1st Service 500-750 kms 30 days

2nd Service 2500-2800 kms 90 days

3rd Service 5000-5500 kms 180 days