INTRODUCTION

Marketing is the art of creating, satisfying customers by meeting the needs of the customers and by creating values satisfaction for them. As Peter Drucker say the essence of marketing is that the entire business has to be seen from the point given of the customer. However, customer face a vast array of products and brand choices prices, supplies and to understand the needs and preference of the customers it becomes imperative us to carry out research together information. We believe that customers estimate which offer will deliver the most value to them and which will deliver and maximize value, with in the bounds of research costs and limited knowledge, mobility and income they form on expectation of value and act on it. Whether or not the offer lives upto the value expectations affects both purchase and repurchase probability. The purpose of any marketing research is to provide information at a specific time on customer, trade, competition and the future brands, so as to enable marketers to formulate successful strategies in their quest for customers mind share and market share.

DEFINITION OF THE MARKETING: According to American Marketing Association: Marketing is the performance of business activities that directly flow the goods and services from producer to consumer or user. Philip Kotler Defines: Marketing as the set of human activities directed at facilitating and consummating exchanges, the essence of marketing is exchange of products transaction is to satisfy human wants and needs. Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.

MARKETING CONCEPTS:
The marketing concept holds that the key to achieving organization goals consists in determining the needs and wants of target market and delivering the desire and satisfaction more effectively land efficiently than competitors. The marketing concepts have been expressed in many colorful ways. Meeting needs profitability Find wants and fill them Love the consumer, not the product

Theodore levitt drew a perceptive contrast between the selling and marketing concepts. Selling focuses on the needs of the sellers marketing on the needs of the buyer, selling is a preoccupied with the seller needs to convert his product into cash, marketing with the idea of satisfying the needs of consumer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.

CUSTOMER PERCEPTION
Perception is defined as the process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the world. It can be described as how we see the world around us. To individuals may be exposed to the same stimuli under the same apparent conditions, but how each person recognizes, selects, organizes and interprets these stimuli is a highly individual process based on each persons own needs, values and expectations. The lowest level at which an individual can perceive a specific stimulus is that persons absolute threshold. The minimal difference that can be perceived between two stimuli is called the differential threshold or noticeable difference i.e... Consumers above the level of their conscious awareness perceive most stimuli. Interpretation of stimuli is highly subjective and is based on what the customer expects to see in the light of previous experience, on motives and interests at the time of perception, and on the clarity of the stimulus itself. Just as individuals have perceived images of themselves, they also have perceived images of products and brands .The perceived image of a product or service (how it is positioned) is probably more important to its ultimate success than are its actual physical characteristics. Products and services that are perceived distinctly and favorably have a much better chance for being purchased than products or services with unclear or unfavorable images. Compared with manufacturing firms, service marketers face several unique problems in positioning and promoting their offerings because services are intangible, inherently variable, perishable, and are simultaneously produced and consumed. Consumers often judge the quality of a product or service on the basis of a variety of informational cues; some are intrinsic to the product (such as color, size, flavor and aroma), while others are extrinsic (e.g., price, store image, brand image and service environment). In the absence of direct experience or other information, consumers often rely on price as on indicator of quality. How a consumer perceives a price as high, low or fair- has a strong influence on purchase intentions and satisfaction. The consumers relay on both internal and external reference prices when assessing the fairness of a price.
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Manufacturers who enjoy a favorable image generally find that their new products are accepted more readily than those of manufacturers with less favorable or even neutral images Consumers often perceive risk in making product selections because of uncertainty as to the consequences of their product decisions. The most frequent types of risks that consumers perceive are functional risk, physical risk, financial risk, psychological risk and time risk. Consumer strategies for reducing perceived risk include increased information search, brand loyalty, buying a well known brand, buying from a reputable retailer, buying the most expensive brand and seeking reassurance in the form of money back guarantees, warranties and pre-purchase trial. The perception related ethical issues include blurring the distinction between advertising and the informational or entertainment content of print or electronic media, the large increase in product placements and branded advertising to combat the avoidance by consumers of TV commercials, using the physical environment and stimulus factors to increase consumption and portraying socially undesirable stereotypes in advertising.

Major Factors Influencing Customer Perceptions

Consumers buying behavior is influenced by cultural, social, personal and psychological factors. 1. Cultural Factors Cultural factors exert the broadest and deepest influence on consumer behavior. The roles played by the buyers culture, subculture and social class are particularly important. Culture

Culture refers to that complex whole which includes in it knowledge, beliefs, art or anything man acquires as a member of society. Subculture

Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Sub cultures include nationalities, religions, racial groups and geographic regions. Social Class
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Virtually all-human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different castes are reared for certain roles and cannot change their caste membership more frequently; stratification takes the form of social class.

2. Social Factors
Reference Groups

A persons reference groups consists of all the groups that have a direct or indirect influence on the persons attitudes or behavior. Family

The family is the most important consumer buying organization in the society and it constitutes the most influential primary reference group. Roles and statuses

A person participates in many groups, family, clubs, organizations etc. The persons position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status.

3. Personal Factors
Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes, furniture and recreation is all age related. Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups as their target market. Occupation and economic circumstances

Occupation also influences a persons consumption pattern. Product choice is greatly affected by economic circumstances; spend able income, savings and assets, debts, borrowing power and attitude toward spending versus saving. Lifestyle

People from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is the persons pattern of living in the world expressed in activities, interests and opinions. Lifestyle portrays the world person interacting with his or her environment.
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Personality and self concept

Each person has a distinct personality that influences buying behavior. It is that distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Related to personality is self-concept or self image. Marketers try to develop brand images that match target markets self image.

4. Psychological Factors
Motivation

A person has many needs at a given time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act. Perception

Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. How a, motivated person actually acts is influenced by his or her perceptions of the situation. Learning

When people act they learn. Learning involves changes in an individuals behavior arising from experience. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and positive reinforcement. Beliefs and attitudes

Through doing and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. The beliefs make up product and brand images and people act on these images. An attitude is a person enduring favorable or unfavorable evaluations, emotion feelings and action tendencies toward some object or idea. Thus a company would be well advised to fit product into existing attitudes rather than try and change peoples attitudes.

NEED & IMPORTANCE OF THE STUDY

The present research study Customer perception towards HERO MOTORS is selected primarily to study the reasons on how the perception is helpful in buying decisions.

The topic is selected to know how important that perception can play to attract the customers.

The project study also provides a useful survey which is very helpful to the Hero Limited to know the perception about their consumers. As Hero is in No.1 position in two wheeler manufacturing and sales in India.

It is important to know how the perception playing a key role in improving the sales. To analyze the perception of consumers of Hero bikes. To know the factors which are affecting the consumer perception. To identify that the consumers aware of features of Hero two wheeler. To know which kind of changes that a customer wants.

SCOPE OF THE STUDY

To identify how the brand Name affects the consumers perception. To identify which feature is more affecting the customers? To get feedback from consumers about the features of Hero. To differentiate the features of Hero from the competitors. To know about the requirements and modifications those are suggested by the customers.
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OBJECTIVES OF THE STUDY

To study the consumer perception on different features of Hero bikes. To study what consumers look for while taking a purchase decision. How perception effects on the consumer towards the purchasing the Hero products. To analyze consumer perception towards services offered by Hero performance of the motor cycle To get feedback on what consumer expects from Hero Motors. The study is restricted to the customers of Hero Motors located in Mancherial region. The proposed project study period pertaining to the time period of 45 days. and

RESEARCH DESIGN AND DATA COLLECTION

The research has both qualitative and quantitative aspects enshrined in it. The study was followed by quantitative research where a questionnaire was used to find consumer opinion about the companys performance strategies of various players and the flow of the company products. This is further subjected to rigorous analysis in a formal and rigid fashion.

Methodology
The research was done through survey method. The collection of data was done through questionnaire. The sample size was taken for this research is 100 customers those who having motor bikes. The areas of this survey consist of Mancherial and its surroundings only. The collection of data was done with the help of a structured questionnaire. The designing of questionnaire needed precision and classification of the subject, so that the respondents could easily understand the question and could answer it sincerely and correctly.

Sample Design
Sample The sample size was taken for this research is 100 customers having Hero motorbikes. Sampling Technique Convenient Sampling technique was used for this project.

Data Collection Tool Questionnaires as the primary form of collecting data. Statistical techniques 1. Bar Diagrams & Pie Charts Statistical tools 1. Statistical software like Microsoft Excel

Data Collection Methods

Primary data Primary data consists of original information for the specific purpose at hand. It is first hand information for the direct users of respondents. The tools used to collect the data may vary and was collected through questionnaire. Secondary data: Secondary data is the data which is already been collected and assembled. This data is available with the company is collected from books, newspapers, journals and websites etc.

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LIMITATIONS OF THE STUDY

As the population is huge and wide spread, the results of the sample survey could not be extrapolated to the population. Due to certain constraints, the survey was limited to customers of Hero bikes residing the Mancherial town and its surroundings. The survey could not be generalized to the rural areas as it may be limited to Mancherial town and its surroundings. The study needed to be completed within a specified time of 45 days and in certain restricted areas. So the findings could not be generalized for the company as a whole.

The survey is based on different age group of the consumers.

The survey is based on economical levels of consumers.

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INDUSTRY PROFILE
Historical Industry Development 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 the domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. 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, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto. 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. The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were twostroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to foreign competition in the mid-80s. And the then market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes,

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demand swelled, resulting in Hero Honda - then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women, towards buying scooters, who were earlier, inclined towards moped purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the scooter segment has consistently lost its part of the market share in the two-wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in company either reporting losses or a fall in profits. India is one of the very few countries manufacturing three-wheelers in the world. It is the world's largest manufacturer and seller of three-wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India.
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The total number of registered two-wheelers and three-wheelers on road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of 12.6mn in 1990. Evolution of Two-wheeler Industry in India Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of twowheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilization of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985. 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 witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition.
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A Growth Perspective The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the shares of scooters were about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining importance during this period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during the period 1993-94 through 2003-04. INDIAN TWO WHEELER INDUSTRY The two-wheeler market has had a perceptible shift from a buyers market to a sellers market with a variety of choices. Players are competing on various fronts such as pricing, technology, product design, productivity, sales process, after sales service, marketing and distribution. In the short term, market shares of individual manufacturers are sensitive to capacity, product acceptance, pricing and competitive pressures from other manufacturers. All the four segments, Motor Cycles, Scooters, Scooterettes and Mopeds have witnessed capacity additions in the last one year and it will continue in the upcoming period as and when the foreign companies opens a local subsidiary. Over this period as and when the foreign companies opens a local subsidiary. Over this period, only the Motor Cycle segment is expected witness higher demand vice-versa supply, while the Scooters, Scooterettes and Mopeds supply will outstrip demand. As incomes grew and people felt the need to own a private means of transport, sale of twowheelers raised. Penetration of the two-wheelers is expected to increase to approximately to more than 25%by 2005. The Motor Cycle segment will continue to lead the demand for two-wheelers in the coming years. Motor Cycle sales are expected to increase by 20% as compared to 1% growth in the Scooter market and 3% by Scooterttes and Moped sales respectively for the next two-years.

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The Indian two and three wheeler industry produced and sold about 4.5million units in 20032004. Like any other Indian Industry, the policy environment guided and controlled this segment of the industry as well. Licensing norms ruled the day till mid 80s. Access to foreign technology inputs and foreign investment were strictly government controlled. Since mid 80s, the Indian automobile industry was administered select doses of liberalization. Foreign collaborations with equity up to 26%, fresh licenses and conditional CKD imports, etc. were allowed. This liberalization coupled with the Indian market potential attracted world majors like Honda, Yamaha, Suzuki and Piaggio setup their Joint Ventures during mid 80s in India. From 1991 onwards, the industry was de-licensed. Automatic approvals for foreign equity up to 51% and equity participation in excess of 51% with specific approvals entered the rulebook. Honda converted one of its Joint Ventures to a 51% subsidiary On regulation front, Central Motor Vehicles Regulations mandates the safety, emissions and other norms. Vehicular emissions standards came into effect first in 1991 and were tightened further in 1996. For the two and three wheeler these are among the tightest in the world. Further tightening has taken effect from April 2000. The four-stroke Motor Cycle has added new dimensions to the two-wheeler segment. The major players in the Motor Cycle market are Bajaj Auto Ltd. with its Pulsar DTS-i, Hero Honda Co. with its Hero Honda Karizma. Competition is intense in all segments of the two-wheeler industry with fuel efficiency and price being crucial considerations for success. In the recent past, a manufacturers ability at product innovation and opening new market niches have also been crucial for the growth of the industry. Bajaj Auto Ltd. entered the Motor Cycle segment in the mid 80s. Since then it has won market shares increasing indigenization and by opening new market niches for their products. Bajaj has emphasized its higher safety and superior quality. Fuel efficiency allowed Hero Honda to dominate the 100cc Motor Cycle segment for most of the last eight years. Bajaj Auto Ltd. has gained considerable market share in this segment since it also launched a four-stroke Motor Cycle two years ago. The 100-cc segment is further power (dominated by Bajaj Pulsar DTS-i), fuel economy and sub-segments. The semi-urban and rural markets will increase in importance in the future and all manufacturers plan to launch heavier bikes with stronger suspensions.

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The relatively affordable and stable prices of Bajaj Motor Cycles backed by flexible loan options have caused other Motor Cycles to continuously lose market share to them in the previous few years. Industry Structure The Indian two-wheelers Industry can be broadly classified as scooters, motorcycles and mopeds. The domestic two wheeler sales of 3.4mn in FY99 are constituted by these segments as shown below. In the last six years, the domestic two-wheeler industry has seen structural changes. This can be seen from the change in composition of two-wheeler sales, where the motorcycles have consistently gained market share from the scooter and moped segments to corner a share of 41% of total two-wheeler sales. This trend is expected to continue in the next two years till the four-stroke scooters make their presence felt in the segment. The table below gives an idea about the strides made by the motorcycle segment in the last six years. The scooter market is dominated by 150cc vehicles from Bajaj Auto and LML, with the rest being served by 100cc variometric scooters from Kinetic Honda. For scooters, northern India is the major market contributing nearly 46% of the total scooter sales. Western and southern India take up second and third position with 27.5% and 15.7% respectively. For our calculations we consider TVS Scooty sales as part of scooter sales as given by Society of Indian Automobile Manufacturers (SIAM). The Indian motorcycle industry can be broadly categorized in to Indian motorcycles and IndoJapanese motorcycles. The Indo-Japanese motorcycle segment is dominated by Hero group, Bajaj and Escorts in collaboration with Japanese vehicle manufacturers Honda, Kawasaki and Yamaha respectively. The Indian motorcycles segment is dominated by Bajaj (M80), Escorts and Royal Enfield.

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In motorcycles sales, western region leads with a market share of 40% of the total motorcycle sales. South and north regions come second and third with a market share of 27.5% and 17.4% of total motorcycle sales respectively. For mopeds southern and western regions of India are the major contributors with nearly 52% and 28% of the overall moped sales. Looking at the population of moped sales in south it appears that the sale of mopeds has reached stagnation. Western and southern region lead in three-wheeler sales with a contribution of 42% and 35.8% of total three-wheeler sales respectively. In terms of two-wheeler vehicle population, Maharashtra stands first with a population of 2.96mn vehicles and Gujarat stands second with 2.64mn vehicles as on March 31 st 1997. Tamil Nadu is the third largest state with 2.45mn two-wheeler population. In terms of three-wheeler vehicle population Maharashtra stands first with a population of 0.39mn and Gujarat in the second place with 0.22mn as on March 31st 1997. Penetration of Two-Wheelers On a base of around 28mn vehicles on Indian roads and around 175mn households, there were only 160 motorized two-wheelers per thousand households in FY98. This compares poorly with countries like Thailand where it is around 600 per thousand households. Also with a household size of 5.5 persons and more than one wage earner in about 60% of the households, the potential for a second vehicle demand is also good. The NCAER in its latest report on market demographics has clearly indicated that post-liberalization (i.e. FY92 to FY96) Indian households have graduated to higher income groups as can be seen in the table below. As seen from the tables shown in annexure, the number of households in the low income group has fallen since FY86 and has been more pronounced in the post-reform period. On the other hand, the numbers of households in the middle, upper middle and high income groups, which form the consumer base for two wheelers, have increased. Their share of the total number of households has increased from 10.6% in FY88 to 20.5% in FY96. The rising income profile has, however, been more pronounced in the urban areas as average annual growth in industry has surpassed that of agriculture in the period FY93 to FY96.
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HERO PROFILE
Hero Motocorp Ltd., formerly known Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4 June 2012, Hero Motocorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motors. Hero is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. 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 MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 201617. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to
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achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. Hero Honda Motors Ltd., the World No.1 two-wheeler company has registered a 16.38 % growth in its cumulative sales for the period April-July 2006. The company sold a remarkable 10, 68,006 units during the period as compared to 9, 17,617 units sold in the corresponding period last year (April-July 2005). This is the fastest I million sales achieved by the company. During the month of July 2006, the company sold a total of 2, 35,314 two-wheelers (including exports) as against 2, and 30,050 units in the corresponding month last year, thus registering a sales growth of 2.3 %. Exports during the month totaled to 10,575 units, marking a remarkable growth of 53.26% over exports achieved during July 2005. The company had exported 6900 two-wheelers in July 2005. Hero Honda Pleasure, the companys first scooter venture sold 6,224 units in July 2006, taking the total tally during the current FY to 28,324 units. July 2006 also saw Hero Hondas flagship model, Splendor, being honored as the Most Preferred Two-wheeler brand in India by CNBC Awaaz, one of the leading Hindi news channels, as part of its Consumer Awards 2006. The results were based on a consumer survey conducted jointly by CNBC Awaaz Mr. Brijmohan Lall Munjal Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). In recognition of his contribution to industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government.

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The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together! Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle - Splendor. This festive season, the company sold half a million two wheelers in a single month-a feat unparalleled in global automotive history. Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar in Uttaranchal will soon be commissioned to cope with sustained customer demand. Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts 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..'

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Board of Directors

No. 1. 2. 3. 4. 5. 6. 7. 8 9. 10. 11. 12. 13. 14. 15. 16.

Name of the Directors Mr.Brijmohan Lall Munjal Mr. Pawan Munjal. Mr. Toshiaki Makagawa. Mr. Yutaka Kudo. Mr. Prakash Munjal. Mr. Sunil Kant Munjal. Mr. Tasuhiro Oyama. Mr.Masasahiro Takedagawa. Mr. Takashi Nagai. Mr. Narinder Nath Vohra. Mr.Pradeep Dinodia. gen.(retd.)Ved Prakash Malik Mr.Analjit Singh. Dr. Pritam Singh. Ms.Shobhana Bhartia. Dr. Vijay Laxman Kelkar.

Category of Directorship Chairman& Whole-time Director Managing Director. Joint Managing Director. Whole-time Director. Non-executive Director. Non-executive Director. Non-executive Director. Non-executive Director. 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.

KEY MILESTONES OF HERO HONDA

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Since its inception, various milestones contributed to the position the company is in now. 1983 1984 1985 1987 1989 1991 1992 1994 1997 1998 1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland
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Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed Shareholders Agreement signed Hero Honda Motors Ltd. incorporated First motorcycle "CD 100" rolled out 100,000th motorcycle produced New motorcycle model - "Sleek" introduced

New motor cycle model-"CD100SS"introduced

500,000th motorcycle produced Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated 2,000,000th motorcycle produced

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Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal 4,000,000thmotorcycle produced. Environment Management System of Gurgaon Plant certified ISO-14001 byDNV Holland Splendor declared 'World No.1'-largest selling single two-wheeler model "Hero Honda Passport Programme" - CRM Programme launched

2001 2002 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001,2002) 2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year.Crossed sales of over 2 million units in a single year,aglobalrecord. Splendor - World's largest selling motorcycle crossed the 5 millionmark
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New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced.

 2005 2006 2007

New motorcycle model - "CBZ*" introduced Joint TechnicalAgreementrenewed Total sales crossed a record of 10 million motorcycles Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced Hero Honda is the World No. 1 for the 5th year in a row Honda Passport Programme" - CRM Programme launched The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category) "Bike Technology of the Year" - Glamout 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. Hero Honda is the world No. 1 for the 7th year in a row. Turnover of the Hero Group Rs. 2,795 Cr. No. of motorcycles sold : 3,336,756. Punch line: Desh ki Dhadkhan. Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched
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New motorcycle model 'Hunk' launched 20 million production milestone achieved

2008 2009 2010 2011 New licensing arrangement signed between Hero and Honda Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma Crosses the landmark figure of 5 million cumulative sales in a single year New model Splendor Pro launched Launch of new Super Splendor and New Hunk Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe lauched with power start feature New 'Glamour' launched New 'Glamour Fi' launched

Brand Ambassadors: Hrithik Roshan Harbhajan Singh

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 Sourav Ganguly Zaheer Khan Mohammad Kaif Veerendra sehwag Yuvaraj Singh
[

SALES PERFORMANCE Aug'07 Total Sales 2,15,076 Aug'08 2,40,875 FY 07-08 12,82,860 FY 08-09 12,63,254

Business Description: Hero Group mainly manufactures motorcycles, mopeds, bicycles, components and spare parts through about subsidiary companies. Hero Honda survives the massive Indian two wheeler market with a range of motor cycles notable for their price, four stroke technology, fuel economy and low level of exhaust pollution. Hero Group Exports Across continents They export cycles, cycles components, motorcycles, mopeds more than countries. The IT initiative of the group exports services to US, UK and Australia. Major products and services Hero group mainly manufactures two wheeler vehicles, spare parts and automatic components. The company subsidiaries offer the following products a) Bicycles Racer segment Children segment Ladies segment
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b) Mopeds c) Motorcycles

Hero puch, Hero winner, hero turbo, Hero envoy, Hero smart etc. Karizma, CBZ, Splendor, Splendor+, Passion, Passion+, CD100, SS, CD Deluxe, Glamour, Hunk etc..

d) Exercise equipments Top competitors are Bajaj Auto Ltd. Honda Ltd.

Stepper, Jogger and Allegro exercise bike.

Suzuki motors co-operation LML Ltd. Motor Industries Company Ltd. YAMAHA

Subsidiaries are Hero cycles Ltd. Munjal Auto Industries Ltd. Munjal Auto components. Hero Global Design. Highway Cycle Industries Ltd.

Achievements 2011 Lifetime Contribution Award by All India Management Associaton Lifetime Achievement Award by Ernst & Young
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 2010

Lifetime Achievement Award by TERI

Business Leader by Lakshmipat Singhania - IIM, Lucknow National Leadership Awards 2009

2009 2007

Pride of Nation Award by the Doon Citizens Council

'LMA-Sat Paul Mittal Lifetime Achievement Award' for the year 2008 SIAM Golden Jubilee Award for outstanding contribution in automobile industry Lifetime Achievement Award by ACMA Lifetime Achievement Award by NDTV Profit Busienss Leadership Awards 2009 PHD Lifetime Achievement Award 2009

The NDTV profit car India & bike India awards 2007 in the following category: Over all bike of the year CBZ X-treme. Bike of the year CBZ X- treme. Bike Technology of the year Glamour PGM F1. Auto tech of the year glamour PGM F1 by overdrive magazine bike of the year CBZ X treme by overdrive magazine.

2006

Ranked CBZ X-treme bike of the year-by B S motoring magazine.

Adjudged 7th top Indian company by wall street journal Asia (top Indian two Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies.
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No.1 in automobile industry by TNS corporate social responsibility award. Best in its class awards for each category by TNS total customer satisfaction awards2006:

Splendor plus (executive) CD deluxe (entry) Pleasure (gearless scooters) Splendor & passion top two models in two-wheeler category by ET brand equity survey 2006.

Adjudged 7th top Indian company by wall street journal Asia ( top Indian two wheeler company.

Top Indian company in the automobile- two wheeler sector by dun& Bradstreet American express corporate awards2006.

Awaaz consumer awards 2006. Certificate of export excellence for outstanding export performance during 2003-04 for two- wheeler & three wheelers complete by engineering export promotion council.

2005

The NDTV profit car India & bike India awards 2006 in the following category: Bike maker of the year. Bike of the year-achiever. bike of the year-achiever( up to 150 category) bike of the year-glamour (up to 125 category) NDTV viewers choice award to glamour in the bike category.

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Awaaz consumer awards 2005 Indias most preferred two wheeler brand by CNBC in the automobiles category.

Bike maker of the year award by overdrive magazine. ICWAI National Award for Excellence in most management 2004 in the private sector category by ICWAI.

10TH motilal oswal wealth creator award for as the most consistent wealth creator for the period 1991-2005.

2004 Winner of the review 200- Asias leading companies award (3 rd rank amongst the top 10 Indias companies. GVC Level 1 (highest rating) by CRISIL for corporate governance Adjudged as the best value creator-large size companies 2003-04 by the outlook money. Corporate excellence award 2004 by Indian institute of materials management. Adjudged as the organization with innovative HR practices by HT power jobs for HR excellence. ICSI National award for excellence in corporate governance 2004 by the institute of company secretaries of India. 2003 Winner of the review 200 Asias leading companies award (3rd rank amongst the top 10 Indian companies). 2002 Winner of the review 200 Asias leading companies award (4 th ranked amongst the top 10 Indian companies). Entrepreneur of the year award conferred upon the chairman, Mr.Brijmohan Mohan Lall Munjal by business standard.
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Company of the year for corporate excellence by the economic times. Giants international award to the chairman, Mr.Brijmohan Mohan Lall Munjal in the field of business & industry

Business leadership award conferred upon the Chairman, Mr.Brij Mohan Lall Munjal by madras management association.

2001 Bike maker of the year by overdrive magazine. Winner of the review 200- Asias leading companies award (3 rd ranks amongst the top 10 Indias companies Achieved OM one million productions in one single year. Entrepreneur of the year award conferred upon the chairman, Mr.Brijmohan Mohan Lall Munjal by Ernst & young. Three leaves award for environment to hero Honda by centre for social & environment green rating project. 2000 Environment performance award to hero Honda Dharuhera plant by Haryana state pollution control board. Environment management system of Gurgaon plant certified ISO 14001 by DNV Holland. Splendor declared world no.1 largest selling single two-wheeler model. Sir Jahangir ghandy medal for industrial peace conferred upon the chairman, Mr.Briji Mohan Lall Munjal by XLRI, Jamshedpur. 1999 Environment management system of Dharuhera plant certified with ISO 14001 by DNV Holland
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Best productivity a ward for the best performance in automobile & tractor sector by national productivity council presented by vice president of India.

1998 Business leader of the year conferred upon the chairman, Mr.Briji Mohan Lall Munjal by business baron. 1997 Gurgaon plant inaugurated by Honda president. Distinguished entrepreneurship award conferred upon the chairman Mr.Brijmohan Lall Munjal by PHD chamber of commerce & industry. 1996 Hero Honda becomes first company to serve Army, Navy & Air force with its 100 cc motorcycles. 1995 National award for outstanding contribution to the development of Indian small scale industry The analyst award 1995 presented to hero Honda moto9rs limited on being ranked 9 th amongst the most investor rewarding companies in India. 1994 Splendor model introduced. Business India group of publications confers the businessman of the year award upon the chairman Mr.Brijmohan Mohan Lall Munjal.

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PROFILE OF BALAJI MOTORS

Balaji Motors PVT.LTD, is dealership type of business. BALAJI MOTORS PVT.LTD, is established on 31st August 2005.The business is running by only one man. The owner name is CHETLA JANARDHAN. The firm is located at Opp: H.P. Petrol Bunk, Hi-Tech City Colony, Mancherial. Generally the sale will be either in cash basis or institutional basis. Bank like Sri Ram Finance, Indusland Bank and Private Finances are providing loans to customers.

Advertisement strategy of Phoenix Motors:

They are giving the ads through news papers, wall paintings, hoardings and field staff. They are upgrading sales by introducing the schemes group bookings, institutional sales and customer door to door activity.

Categorization of staff members:

Staff members are categorized for technicians is members are allotted for field staff, 5 members are recruited for sales persons. The for evaluating for spare party, 5members are allotted for managerial accounts and another 3 persons for cash transactions and other members are allotted for managerial accounts and another 3persons for cash transactions and other members are allotted for remaining work.

Customer relationship
To entertain the customers the showroom provides a huge having pool game, internet facility and television with home theatre system. They provide bike maintenance programs on every week. According to other dealers BALAJI MOTORS is first in sales and best in service. They treat customer is the very important person at Phoenix Motors. Customers satisfaction is their motto, why because, the well satisfied customer is the best advertisement. They provide better value for the customers as well as employees also. At Balaji Motors The customer is the boss.
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SALES STRATEGY OF BALAJI MOTORS Averagely they are selling 25 vehicles per day. Balaji Motors PVT.LTD is the A.Ps No. 1 dealership in sale and other activities. It is a QLAD (Quality Leader Through quality Dealer) At Phoenix Motors they give the quality service to the customers because the cost is long forgotten but the quality is remembered forever.

Warranty on Proprietary Items

Warranty on proprietary items likes tubs, tires, and battery etc will be directly handled by the original manufacturers except AMCO for batteries and Dunlop and Falcon tires and tubs. In case of any defects in propriety items, other than the above two mentioned OEMs. The dealer must approach the branch office dealer of respective manufacturers. For AMCO batteries and Dunlop and Falcon tires, tubes claims will be accepted at our authorized dealership. As per the mutually agreed terms and conditions between HERO of these two OMEs in case of claim is not accepted for invalid reasons. Then the claim along with the refusal note from the OEM. OEM can be sent to the warranty section at gorgon plant after due to recommendation of the area service engineer. If any of the six free services of subsequent paid services is not availed as per the recommended schedule given in the owners manual. If HERO recommended engine oil is not used. To normal wear and tear components like bulbs, electric wiring, filters, spark plug, clutch plates, brake, brake shoes, fasteners, shims washes , oil seals, gaskets, rubber parts (other than tire and tube) plastic components, chain and sprockets and in the case of wheel rim misalignment or bend. If there is any damage due to modified or fittings of accessories other than ones recommended by Hero. If the motor has been used in any competitive events like tracking Races or Rallies.

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If there is any damage to the painted surface due to industrial pollution or other extraneous factors. For claims made for any consequential damage due to any previous malfunction. For normal phenomenon like noise, vibration, oil seepage, which do not affect the performance of the motorcycles. If there is any damage caused by due to usage of improper oil, grease, non genuine parts. For motor cycles which have been used for any commercial purpose as taxi etc. For maintenance repaired due to misuse while driving or due to adulteration of oil, petrol or condition. due to bad road

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DATA ANALYSIS AND INTERPRETATION

1) Which age group respondents are belongs to?

S. No 1 2 3 4

Age 18-25 26-35 36-45 45 Above Total

No. of respondents 52 30 10 8 100

Percentage 52% 30% 10% 8% 100%

Interpretation: It is observed that almost half of the owners of motorcycles belong the age group of 18 -25 with frequency of 52%. Next to this is from the age group of 26-35 with the frequency of 30%. Other categories are 36-45, and 45 above with frequency of 10%, and 8% respectively.

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2) Occupation of the Respondents?

S. No 1 2 3 4

Occupation Self Employed Salaried Daily Labour Others Total

No. of respondents 38 44 10 8 100

Percentage 38% 44% 10% 8% 100%

Occupationsof the Respondents

50 45 40 35 30 25 20 15 10 5 0 Salaried Self Em ployed Daily Worker Others 10 8 38 44

Interpretation: The respondents are examined to know their occupation which might be the influencing factor. It is found that majority of respondents are from self employed i.e. 44%. Next to the self employed category is from salaried i.e. 38%.

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3) Income that the respondents are earning by their occupation?

S. No 1 2 3 4

Income Below 5k 5k-10k 10k-15k 15k Above Total

No. of respondents 11 61 20 8 100

Percentage 11% 61% 20% 8% 100%

Incom elevelsof the respondents

70 60 50 40 30 20 10 0 Below 5k 5k - 10 k 10k - 15k Above 15k 20 11 8 61

Interpretation: It is found that majority of respondents are from 5k-10k with frequency of 61%. Next to this category is from 10k-15k i.e. 20%.

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4) Do you know that Hero Honda motors are the largest selling vehicle in the world?

S. No 1 2

Options Yes No Total

No. of respondents 81 19 100

Percentage 81% 19% 100%

No, 19

Yes, 81

Interpretation: It is observed that 81% of the respondents are aware of the Hero Honda Motors and the remaining respondents are unaware of the product.

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5) Since how many years you are aware of the Hero Honda two wheeler motor cycles? S. No 1 2 3 4 Options 0-5 Years 5-10 Years 10-15 Years 15 Above Total No. of the respondents 36 30 20 14 100 Percentage 36% 30% 20% 14% 100%

40 35 30 25 20 15 10 5 0

36 30

20 14

0-5 Years

5-10 Years

10-15 Years

15 Above

Interpretation: It is observed that almost half of the respondents i.e., 36% of 0-5 years and 30% i.e. 5-10 years. Other categories are 10-15, and 15 above with frequency of 20%, and 14% respectively.

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6) How did you come to know about the Hero Honda Motor Cycles? S. No 1 2 3 4 Options By Friends & Relatives Promotional Activities Road shows On road Total No. of respondents 43 19 23 15 100 Percentage 43% 19% 23% 15% 100%

50 45 40 35 30 25 20 15 10 5 0 ByFriends & Relatives Prom otional Activities Road shows On road 19 15 23 43

Interpretation: It is observed that 43% of the respondents came to know about Hero Honda two wheelers from by friends & relatives, 23% from on road shows, 19% from the promotional activities and 15% from on roads.

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7) Which factor has influenced you to choose the Hero Honda motor cycle? S. No 1 2 3 4 Options Style Mileage Brand Trust Total No. of respondents 15 40 25 20 100 Percentage 15% 40% 25% 20% 100%

45 40 35 30 25 20 15 10 5 0 STYLE MILEAGE BRAND TRUST 15 25 20 40

Interpretation: It is found that 40% of customers liked mileage as the most important thing in the Hero Honda motor cycles. And 25% of customers liked brand, 20% rely up on brand and 11% liked the style.

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8) Do you think that Hero Honda bikes meet the needs and requirements?

S. No 1 2

Options Yes No Total

No. of respondents 70 30 100

Percentage 70% 30% 100%

NO, 30

YES, 70

Interpretation: It is found that 70% of customers satisfied with the features provided by the Hero Honda two wheelers and 30% of customers are not being satisfied with their requirements..

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9) Do you have any personal attachment with the Hero Honda two wheeler?

S. No 1 2

Options Yes No Total

No. of respondents 64 36 100

Percentage 64% 36% 100%

70 60 50 40 30 20 10 0

64

36

YES

NO

Interpretation:

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It is observed that most of the respondents i.e., 64% are having the personal attachment with the Hero Honda two wheeler.

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10) What kind of personal attachment that you have with Hero Honda two wheeler? S. No 1 2 3 4 Options By Parents By Friends By Celebrities Others Total No. of respondents 26 19 15 4 64 Percentage 41% 30% 23% 6% 100

30 26 25 20 15 10 5 0 BY PARENTS 41% BY FRIENDS 30% BY CELEBRITIES 23% OTHERS 6% 4 19 15

Interpretation: It is observed that most of the respondents i.e., 49% are having the personal attachment with the Hero Honda two wheeler with the close impact of their parents and 30% from by the friends and 15% from by the celebrities to the respondents follow and 6% by other factors.

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11) Do you aware of all two wheeler models that are offered by the Hero Honda motors? S. No 1 2 Total Options Yes No No. of respondents 73 27 100 Percentage 73% 27% 100%

NO, 27

YES, 73

Interpretation: It is observed that most of the respondents i.e., 73% are aware about the products offered by the Hero Honda into the market and it is found that they closely observes the changes and alterations of the product portfolio of the Hero Honda.

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12) Which model of motor cycle do you prefer in Hero Honda two wheelers? S. No 1 2 3 4 Options Splendor Plus Passion Plus CBZ extreme Karizma Total No. of respondents 10 25 40 25 100 Percentage 10% 25% 40% 25% 100%

45 40 35 30 25 20 15 10 5 0 Splendor Plus Passion Plus CBZextrem e Karizm a 10 25 25 40

Interpretation: It is observed that most of the respondents prefer the two wheeler CBZ i.e., of 40% because most of the respondents chosen for the questionnaire are younger. And the remaining models Karizma, Passion Plus and Splendor Plus are 25%, 25% and 10% respectively.

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13) Apart from Hero Honda two wheelers which other two wheeler that you would like to prefer? S. No 1 2 3 4 Options BAJAJ TVS HONDA YAMAHA Total No. of respondents 33 26 23 18 100 Percentage 33% 26% 23% 18% 100%

35 30 25 20 15 10 5 0

33 26 23 18

BAJ AJ

TVS

HONDA

YAMAHA

Interpretation: The above information reveals that 33% of respondents would like to prefer Bajaj two wheeler apart from Hero Honda two wheeler and also prefer TVS, Honda and Yamaha with 26%, 23% and 18% respectively.
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14) Which factor influencing you to choose another two wheeler models apart from the Hero Honda motor cycle? S. No 1 2 3 4 Options Style Mileage Brand Trust Total No. of respondents 35 19 26 20 100 Percentage 35% 19% 26% 20% 100%

40 35 30 25 20 15 10 5 0 STYLE MILEAGE BRAND TRUST 19 20 35

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Interpretation: It is found that 35% of respondents like to prefer other two wheeler brands apart from the Hero Honda two wheeler regarding the Style and also Brand, Trust and Mileage with 26%, 20% and 19% respectively.

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15) Do you think that Hero Honda suits to your life style?

S. No 1 2

Options Yes No Total

No. of respondents 74 26 100

Percentage 74% 26% 100%

NO, 26

YES, 74

Interpretation: It is found that 74% of respondents are happy with the Hero Honda two wheelers because of its suitability to their life styles.

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16) Do you think that the cost of the Hero Honda motor cycle which you have chosen is affordable for you?

S. No 1 2

Options Yes No Total

No. of respondents 68 32 100

Percentage 68% 32% 100%

No, 32

YES, 68

Interpretation: It is observed that 68% of respondents are capable of owning their favorite Hero Honda two wheeler the remaining 32% of respondents are not in a position to own their favorite model.

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17) What do you feel about the performance of the Hero Honda motor cycles?

S. No 1 2 3 4

Options Excellent Very good Good Average Total

No. of respondents 55 25 15 5 100

Percentage 55% 25% 15% 5% 100%

60 50 40 30 20 10 0

55

25 15 5

Excellent

Very good

Good

Average

Interpretation: The above information 55% of respondents feel excellent when they ride the bike and 25% feel very good and remaining are satisfactory when they ride the bike.

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18) Which means of payment would you like to purchase the two wheeler?

S. No 1 2

Options Finance Cash Total

No. of respondents 60 40 100

Percentage 60% 40% 100%

CASH, 40

FINANCE, 60

Interpretation: It is observed that 60% of respondents liked finance option and 40% of respondents liked cash option.

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19) Are you satisfied with the services provided by the organization after the purchase of the bike?

S. No 1 2

Options Yes No Total

No. of respondents 75 25 100

Percentage 75% 25% 100%

NO, 25

YES, 75

Interpretation: When we asked about the after sales service provided by the organization 75% respondents strongly satisfied with the service that is provided by the organization. And 25% satisfied.

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FINDINGS
After analyzing the response of the consumer interviewing through questionnaire and observation the following were found in the study. 1. The main Hero customers are between 18--35 years of age. 2. Majority of the respondents own Hero bike belongs to salaried & self employed occupation with average earnings of 5000 -10,000 per month. 3. The Brand Name of Hero is still there in the market and in the minds of the customer. 4. From analysis and interpretation it is found that Hero is mainly chosen for its mileage performance and brand image. 5. The most important factor which influenced the customer to buy a Hero Honda bike is price reduction followed by fuel efficiency. 6. Majority of the respondents have personal attachment with Hero bikes. 7. HERO is the only two wheeler company in India which has given these vast ranges of motorcycles to the market, obtained from general observation during the study 8. Hero motor cycles were the market leader in the Two Wheeler segment. But they are losing their grip in the market. Even the 33% Hero customers said that if they get a second chance they would prefer Bajaj. 9. Respondents think Hero bikes suits to their life style as owning & maintaining it is economical. 10. Majority of the customers are satisfied with the performance of Hero. 11. Most of the Hero customers are satisfied with the after sale service and servicing of bike. 12. Majority of the customers are aware of HERO through promotional activities, road shows and on road. Other than this their friends & Relatives also place an important role in influencing the customer
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13. From the survey its revealed that Bajaj motors is the foremost competitor of Hero followed by TVS.

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CONCLUSION
From the study it is concluded that the respondents perception about Hero is that: 1. Hero is one of leading two wheeler producer in the world and a major player in the Indian Market. 2. They are the producer of largest selling motor cycle of the world that is Hero Splendor, Passion have their own importance still in the market. 3. But from the past two or three years Hero suffered a slight loss in its market share and Bajaj became a big competitor to Hero . The introduction of Bajaj Pulsar is one of the biggest threats to Hero . 4. It holds an important place in the minds of consumer by providing efficient service and better products. 5. Product efficiency and innovations are the method they live up today. 6. As their customers are mostly between the age group of 18-35 years. the company should concentrate on more such of age groups also. 7. It has created a very good brand image for itself by providing low maintenance, fuel efficient, sleek looking models along with efficient after sales service. 8. It has attracted every class of customers. The company should focus on advertisements to attract more and more customers. In todays competitive business environment, it is only due to the positive perception of the consumer that the company is being able to compete in the market with its other competitors.

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RECOMMENDATIONS
1. Most of the customers are of the view that the price tag of HERO bikes as compared to other similar bikes is a bit higher. Hence could be reduced. 2. CD-Delux, Splendor+ and Passion Plus, could be added with more power, mileage and given with more colours. 3. The customers should be provided with enough information regarding effective maintenance of the bikes so that the consumers get the best from the bike. 4. HERO has to identify those dealers who are facing the problem with sales and take adequate measures to keep up the so far created brand image. 5. Hero has to use more promotional techniques to improve the sales in future. 6. HERO has offered just one model (HERO PLEASURE) for women whereas its competitors are offering more them too so they should concentrate on this aspect. 7. Apart from KARIZMA and CBZ-XTREME all other models are light weight and hence are prone to accidents.

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QUESTIONNAIRE

Dear Sir/Madam, I am conducting a survey on CUSTOMER PERCEPTION as my project study towards HERO MOTORS. I hope for your kind coordination. Name: Contact Number: E-mail address: .............

1) Which Age group you are belong to? a) 18 25 b) 26 35 c) 36 45 d) 45 above

2) Occupation of the Respondents? a) Salaried b) Self Employed c) Daily Worker d) Others

3) Income that the respondents are earning by their occupation? a) Below 5K b) 5K 10K c) 10K 15K d) 15K above

4) Do you know the Hero motors are the largest selling vehicle in the world? a) Yes b) No

5) Since how many years you are aware about the Hero two wheeler motor cycles? a) 1-5 Year b) 5-10 Years c) 10-15 Years d) 15 Above

6) How did you come to know about the Hero Motor Cycles? a) By Friends & Relatives b) c) Road Shows b) Promotional Activities d) Others

7) Which factor influencing you to choose the Hero motor cycle? a) Style b) Mileage c) Brand d) Trust

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8) Do you think that Hero meet the needs and requirements? a) Yes b) No

9) Do you have any personal attachment with Hero? a) Yes b) No

10) Which kind of personal attachment that you have with Hero two wheeler? a) By Parents b) By Friends c) By Celebrities d) By Others

11) Do you aware of all two wheeler models that are offered by the Hero motors? a) Yes b) No

12) Which model of motor cycle do you prefer in Hero two wheeler? a) Splendor Plus b) Passion Plus c) CBZ d) Karizma

13) Apart from Hero wheelers which other two wheeler that you would like to prefer? a) Bajaj b) TVS c) Honda d) Yamaha

14) Which factor influencing you to choose another two wheeler models apart from the Hero motor cycle? a) Style b) Mileage c) Brand d) Trust

15) Do you think that Hero suits to your life style? a) Yes b) No

16) Do you think the cost of the Hero motor cycle which you have chosen is affordable for you? a) Yes b) No

17) What do you feel about the performance of the Hero motor cycles? a) Excellent b) Very Good c) Good
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d) Average

18) Which means of payment would you like to purchase the two wheeler? a) Cash b) Finance

19) Are you satisfied with the services provided by the organization after the purchase of the bike? a) Satisfied b) Strongly Satisfied

Feedback of the customer: ___________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ _________________________________________________________________________

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BIBLIOGRAPHY
Text Books

Philip Kotler Philip kotler & Grey Armstrong J.C.Gandhi D.D. Sharma Sultan Chand and sons

- Marketing Research - Principles of marketing - Marketing Research

Internet Websites: www.hero.com www.herogroup.com www.google.com http://www.themanager.org/marketing/Customer_Perception.htm http://www.mouthshut.com./product_review/Hero--925044056.html

News Papers The Business line The Economic Times of India The Business Standard

Journals Indian Journal of marketing Auto India

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