Professional Documents
Culture Documents
HERO Moto Corp Marketing
HERO Moto Corp Marketing
1.
Introduction
2.
Company profile
3.
Segmentation,
targeting
and
positioning
4.
Objective of project
5.
Product Profile
6.
Research Methodology
Primary Data
Secondary Data
7.
8.
Findings
9.
Conclusion
10.
Recommendations
o Questioners
o Bibliograph
PREFACE
1|Page
During the 80s, Hero Moto Corp (previously 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 Moto
Corp (previously Hero Honda) sold millions of bikes purely on the commitment of
increased mileage. In today world customer is the king irrespective of whatever the
business may be ,wherever the operations may be .A good business organization
is known by its strong customer loyalty, which turns to become a unified family.
The project assigned to me by the company was a market study on 100cc bikes
among the dealers and customers with special reference to Hero Moto Corp
(previously Hero Honda) dealer and loyalty of customers towards the bike. The
objective of the study was to find out the dealers and customers opinion about the
100cc bikes with special reference to Hero Moto Corp (previously Hero Honda)
dealer to understand how market fluctuations affect their strategic decision. The
research methodology was descriptive in nature encompassing a sample of
200customers for in-depth analysis It was observed that 80%of the respondents are
interested to purchase Hero Moto Corp (previously Hero Honda) motor vehicle
.are in the age group of 18-35. A large part of respondents with majority of 60% are
satisfied with the availability of spare part and remaining 40% says no. It was
observed that the 92% resplendence are either highly satisfied are just satisfied and
remaining 8% are dissatisfied. Different models Hero Moto Corp (previously Hero
Honda) vehicles can be introduced for ladies, with better comfort, speed and
power, so that it can cater to the changing tastes of women.
More service station should be established in every part of the city, so those
customers have an easy accessibility. With a strong sales and service network of
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650 Authorized dealership, 1500 authorized service centers and over 1000 certified
service points, Hero Moto Corp (previously Hero Honda) is growing from strength
to strength. Hero Moto Corp (previously Hero Honda) motor should also start
producing other models and should add a different style and variety to their
product line. This will surely attract more customers. This will help to increase the
existing goodwill and position in the market. The experience gained during the
analysis and drawing inferences was an exiting and informative exercise under the
guidance of unit head.
INTRODUCTION TO TOPIC
3|Page
Japanese keiretsu system, these networks are now the glue that holds the Hero
Group together. "Thanks to the relationships that we have nurtured so passionately
in the Hero Family, the younger generations of some of our bicycle dealers have
become dealers of Hero Moto Corp (previously Hero Honda). These relationships
have survived through generations - through bad times and good times'' the
patriarch now reminiscences. Besides bonding with his vendors and dealers,
Brijmohan has been personally responsible for kindling a spirit of entrepreneurship
amongst his employees, and today, 40 of his former employees are successful
entrepreneurs.
Staying Ahead Though not technically qualified in the conventional sense, few of
his contemporaries have understood the dynamics of technology better than
Brijmohan Lall has. He could always visualize the applicability of technology
before others could. For example, in the 1980s, when all two-wheeler companies in
India opted for two-stroke engine technology, Brijmohan preferred a four-stoke
engine - a technology that dramatically increased fuel efficiency and reduced
maintenance costs. This technology was one of the biggest reasons for Hero Moto
Corp (previously Hero Honda)'s stupendous success. Time and again, Brijmohan
managed to steal a march over his industry peers. For example, when Honda
Motors of Japan was looking for a collaborator in the 1980s, the Hero Group was
not high up the pecking order initially as there were other more eligible and
established suitors. Yet it didn't take long for the astute Japanese to realize that the
Hero Group and Honda had much more in common than earlier perceived; there a
sharp focus on financial and raw material management, and employee turnover
was low. Honda officials were also amazed to find that the Munjals were already
practicing "Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan
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The Board of Directors of The Hero Moto Corp (previously Hero Honda)
Group Comprises of : 6|Page
Chairman
Managing Director
Director
Director
Director
Mr. M P Wadhawan
Director
Mr. S P Virmani
Director
Mr. O P Gupta
Director
Mr. M. Sudo
Director
Mr. S Toshida
Director
Mr. N N Vohara
Director
Director
Director
HONDA) MISSION
Hero Moto Corp (previously 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 Moto Corp (previously Hero
Honda) to new heights in excellence and helps the organization forge a unique and
mutually beneficial relationship with all its stakeholders.
VISION
Hero Moto Corp (previously Hero Honda) now the leader in the two wheeler
industry. Leaders are not born, they evolve over time. It all started on the
auspicious. Baisakhi Day the 13th of April 1984, when the Hero Moto Corp
(previously Hero Honda) Motor Company joined hands. On its journey to take on
the No. 1 morale, Hero Moto Corp (previously Hero Honda) created some
prominent milestones.. This leadership has been achieved only because of its
philosophy to excel in all areas. In fact, passion to excel is a credo of the entire
Hero Moto Corp (previously Hero Honda) family and is a way of life in Hero Moto
Corp (previously Hero Honda). The changing Scenario of increasing competition
and the entry of new brands has made the credo even more relevant. It serves as a
constant reminder to ensure excellence in providing service to the customer. They
are providing outstanding customer service. It is in keeping with Hero Moto Corp
(previously Hero Honda)s own passionate commitment to provide ultimate
8|Page
customer satisfaction. Today, they consistently meet and exceed all requirement on
quality, cost and delivery.
OBJECTIVES
Hero Moto Corp (previously 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 Moto Corp (previously Hero
Honda) to new heights in excellence and helps the organization forge a unique and
mutually beneficial relationship with all its stake holders
Awards - NDTV Viewers Choice Award to Hunk in Bike category India Times
Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian
Retail Congress Award for Retail Excellence (Strategies and Solutions of business
innovation and transformation) - Best Customer Loyalty Program in Automobile
category NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the
year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the
Customer Awards:
2008
No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
2007
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" - Glamour PGM FI
"Auto Tech of the Year" - Glamour 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. 2006
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list
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2005
Awaaz Consumer Awards 2005 - India's 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 (Second) in Cost Management
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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 - Asia's Leading Companies Award (3rd Rank amongst
the top 10 Indian 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 - Asia 's Leading Companies Award (3rd Rank amongst
the top 10 Indian companies). Most Respected Company in Automobile Sector by
Business World. Bike Maker of the Year by Overdrive Magazine.
2002
Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia
's Leading Companies Award (4th Rank amongst the top 10 Indian companies).
Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in
'Overall Best Managed Company' category, ranked 3rd in 'Best Financial
Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall
Best Investor Relations' category, by Asiamoney. Highest Wealth Creating
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Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by
CRISIL for Corporate Governance.
2001
Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia
's Leading Companies Award (9th Rank amongst the top 10 Indian Companies).
Winner of Three Leaves Award for showing Corporate Environment Responsibility
in the Automobile Sector by Centre for Science & Environment.
1999 National Productivity Award for the Best Productivity Award in the category
of Automobile & Tractor presented by Vice President of India. 1995 The Analyst
Award 1995 presented to Hero Moto Corp (previously Hero Honda) Motors Ltd.
on being ranked 9th amongst the most investor rewarding companies in India. 1995
National Award for outstanding contribution to the Development of Indian Small
Scale Industry (NSIC Award - Presented by President of India). 1991 Economic
Times-Harvard Business School Award for Corporate Performance to Hero Moto
Corp (previously Hero Honda) Motors Ltd.
started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle)
were the only two in production. In 1948, Bajaj auto began trading in imported
Vespa scooter and the three wheeler- finally, in 1960s. it set up shop to
manufacturer them in technical collaboration with piggaio of Italy. The agreement
expired in 1971. In the initial stages, the scooters segment was regulated regime,
foreign company was not allowed to operate in India, and waiting time for getting
Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet
was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The
motorcycles industry was originally dominated by Enfield with 350 cc bikes. The
motorcycles industry was cc segment. The two wheelers segment was opened up to
foreign competition in the mid 1980s which saw the entry of the Japanese
manufactures into the count
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COMPANY PROFILE
The Hero Moto Corp (previously Hero Honda) story began with a simple vision
the vision of a mobile and an empowered India, powered by Hero Moto Corp
(previously Hero Honda). This vision was driven by Hero Moto Corp (previously
Hero Honda)'s commitment to customer, quality and excellence, and while doing
so, maintain the highest standards of ethics and societal responsibilities. Twenty
five years and 25 million two wheelers later, Hero Moto Corp (previously Hero
Honda) is closer to fulfilling this dream. This vision is the driving force behind
everything that we do at Hero Moto Corp (previously Hero Honda). We understood
that the fastest way to turn that dream into a reality is by remaining focused on that
vision. There were many unknowns but we kept faith, and today, Hero Moto Corp
(previously Hero Honda) has been the largest two wheeler company in the world
for eight consecutive years. Our growth has kept compounding. The company
crossed the ten million unit milestone over a 19-year span. In the new millennium,
Hero Moto Corp (previously Hero Honda) has scaled this to 15 million units in just
five years! In fact, during the year in review, Hero Moto Corp (previously Hero
Honda) sold more two wheelers than the second, third and fourth placed two
wheeler company put together. With Hero Moto Corp (previously Hero Honda),
the domestic two wheeler market was able to show positive growth during the year
in review. Without Hero Moto Corp (previously Hero Honda), the domestic market
would have actually shrunk. Over the course of two and a half decades, and three
successive joint venture agreements later, both partners have fine-tuned and
perfected their roles as joint venture partners. What the two partners did was
something quite basic. They simply stuck to their respective strengths. As one of
the world's technology leaders in the automotive sector, Honda has been able to
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Motors succinctly puts it, "We pioneered India's two wheeler industry, we've
steered it through difficult times; now it is our responsibility to set the pace again.''
New Models The company has a large portfolio of brands, with the moneyspinners
being mainly Splendor Plus (the world's largest selling bike) and Passion.
However, the company claims it was the launch of the 150cc CBZ and 225cc
KARIZMA which established Hero Moto Corp (previously Hero Honda) as an
inspirational brand. "The launch of CBZ and KARIZMA got us into a different
league altogether. Although the sales are just about 3,000 a month, it made us an
overall bike company, Hero Moto Corp (previously Hero Honda) would launch a
new model of the KARIZMA by the end of current year, the Managing Director,
Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet to decide on the
location of its proposed Fourth manufacturing unit. The feasibility study is on'', he
said, adding that the new plant was likely to come up in the next 18 months. New
launches are likely to help Hero Moto Corp (previously Hero Honda) gain a market
share in the coming quarters. Hero Moto Corp (previously Hero Honda) Motors
Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely to
be phased out of the market once the new model sells ``10,000 plus'' units per
month. Sales Performance Hero Moto Corp (previously Hero Honda) went against
the grain and created a growth trajectory all of its own. Sales of the company grew
by over 11 per cent in volume terms and in value terms; they grew by over 19 per
cent. Effectively, this helped the company end the year with a market share of
around 60 per cent. This robust performance helped the company increase earnings
margin 120 basis pointsa remarkable feat, considering that elsewhere in the
world, the automobile industry went through its worst year in recent history.
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Hero Moto Corp (previously Hero Honda)s performance in its silver jubilee year
helped it retain its position as the worlds largest two wheeler company for the
eighth year in a row. It also helped the company cross the 25 million unit mark
becoming the first company in India to reach this milestone. Last year, two new
models were launched, namely CBZ XTREME and HUNK to address super-style
and economy segments. Passion pro has found its position firm amongst Indian
models, only next to Splendor, the largest selling bike in the world in terms of sales
performance. CBZ was re-launched as CBZ XTREME, in April 2007, with
changes and value additions to cater to specific needs of the customers. Reportedly
CBZ XTREME is doing well in its segments and has sold over 10,000 units in the
initial months itself. Hero Moto Corp (previously Hero Honda) has targeted a sale
of over 3 million bikes for the year 2009-10. This effort is supplemented by a
major launch this year, in October end; this bike will have some exclusive features
and will be in the 200cc plus range. There are some ambitious programmes of
launching a new range of bikes with technical support from Honda in the coming
years. With a slew of such measures the capacity available at present locations can
at best support two-million production target at the existing plants. The company,
therefore, is looking at the possibility of setting up a third plant to meet the future
demand and for which techno-economic study is in progress.
New Initiatives Customer and customer satisfaction is the purpose of our being an
entity. To increasingly understand him and make him part of our ongoing business.
Customer related initiative has been the increase of warranty period to three years
since July 2008. This has attracted a great deal of customer attention. During the
year the company has added nearly a hundred dealerships and SSPs. In terms of
sheer numbers, the network has grown by 16% during the year 2008-09. We would
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endeavor to increase our reach to every corner of this country. Plans for the future
In the previous year, the domestic two-wheeler industry entered a period of degrowth. However, this was arrested in 2008-09, largely on the back of Hero Moto
Corp (previously Hero Honda)'s performance. After the blip of last year, the twowheeler industry went back to a growth phase, largely driven by Hero Moto Corp
(previously Hero Honda) and exports. The industry clocked total volumes of 8.5
million during the year in review, a growth of 5 per cent compared to a fall of 5 per
cent in the previous year. The pace of growth was lower in the domestic market,
where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This,
however, was a significant improvement over previous year when the industry had
shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the
two wheeler industry, and during the year in review, accounted for four fifth of
sales. Interestingly, for the second year in succession, scooters increased their share
in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend
reversal from the last 10 years, where the share of scooters in the two-wheeler pie
had been shrinking. Changing lifestyles among women, and the introduction of
feature-rich, high-quality scooters possibly has much to do with the revival in
demand
The entry segment made up of basic 100 cc bikes -Had started slowing two years
ago, and during the year in review, sales in this segment were down by more than
15 per cent. This could be attributed to the fact that deluxe segment bikes have
become affordable on account of a 4 per cent excise cut, 1 per cent reduction in
CST and the special package of reduction in excise duty in December, which most
manufacturers passed on to the consumers. The deluxe segment-made up of value
for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent.
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The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from
last year's levels. There is no doubt that the higher interest rates have brought down
growth. Nevertheless, this segment was still able to clock a growth rate in high
single digits mainly because of the excitement caused by a slew of new models that
came into this segment during the year. The bigger story, of course, is that buyers
in small-town India and rural India, as well as employees of the state and Central
government, were relatively less affected by the slowdown, and this benefitted the
two wheeler industry.
History Of Company
1984
The Company was Incorporated on 19th January, at New Delhi. The Company
Manufacture motor cycles up to 100 cc capacity. The Company was promoted by
Hero Cycles (P) Ltd. (HCPL).
The Company entered into a technical-cum-financial collaboration agreement with
Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML
was to furnish complete technical information and know-how and trade secrets and
other relevant data.
Hero Moto Corp (previously Hero Honda) CD-100 is the first four stroke
motorcycle to be introduced in India in 100cc range. Its most attractive features are
fuel efficiency and its light weight. CD-100 will be equipped with electronic
ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher
indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In
November, 119,99,985 No. of equity shares issued at par of which 71,99,985
shares reserved for allotment as under:
(i)
31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and
(ii)
(iii)
Bahadur
Chand Investments (P) Ltd.
31,20,000 shares to Honda Motor Co. Ltd., Japan and
9,59,987 shares to friends and association of promoters. Out of the
balance 48,00,000 shares, 2,40,000 shares were reserved for subscription
22 | P a g e
by the
associates. The remaining 44,64,000 shares were offered at par for public
subscription during November.
1985
The Company embarked on its 2nd phase of expansion of increasing its installed
capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several
critical aliminium and steel components.
1986
36,00,000 rights equity shares issued at par in prop. 3:10.
1987
The Company offered 6,00,000 - 15% secured redeemable non-convertible
debentures of Rs 100 each for cash at par on rights basis in the proportion 1
debenture: 18 equity shares. Another 3,00,000 - 15% debentures were allotted to
retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5
per debenture on the expiry of the 7th year from the date of allotment of the
debentures
3,75,000 rights equity shares issued at par in prop.3:10
1989.
The Company introduced a new model "Sleek" during July.850 No. of equity
shares forfeited.
1990
The Company was planning to launch a new model motor cycle-CD 100 SS
sutiable to
1994
The Company proposed to expand the capacity of existing plant at Dharuhera to
2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos.
per annum at Gurgaon Industrial Estate was being set up.
The Company issued 39,79,500 bonus shares to the existing shareholders in the
ratio of 1:4. The Company also issued 28,557 number of fractional coupons
representing 14,250 shares against which shares shall be allotted to presenting the
same for consolidation and allotment. The Company's production and turnover
increased to 1,83,490 motorcycles and Rs.483.85 crores respectively due to growth
in demand for two wheelers and declining inflation.
1995
14,420 bonus shares issued by way of consolidation of fractional coupons. - A new
Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd.,
Japan for the period up to the year 2004 which includes technology related to
models of higher Engine displacement. The Company allotted 39,79,500 No. of
Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of
capitalization of General Reserves.
The Company had issued 28557 No. of Fractional Coupons representing 14.250
shares against which the Shares shall be alloted on presenting the same for
consolidation and allotment.
1997
Hero Moto Corp (previously Hero Honda) Motors has launched its newest
motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic
conditions. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) has set
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up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the
Honda Super Cub 100 cc step thro bike. Hero Moto Corp (previously Hero Honda)
has set up a new state-of-the-art plant, heralding a new phase of development of
motorcycle industry in India, to provide the most modern and technologically
advanced production facilities.
Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has
set up a plant in Brazil for manufacturing hero winner scooters.
A new step thru model `Street-100' with unique feature was launched on 24th
January.
1998
The company proposes to increase the share capital to 5 crore equity shares of Rs.
10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4
lakh cumulative convertible preference shares of Rs. 100 each with power to
increase or reduce it from time to time. The company further proposes to capitalise
Rs. 19,96,87,500 from general reserve to share capital through issue and allotment
of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted
and distributed to members of the company holding equity shares of the company
in the proportion of one bonus share for every fully paid equity shares of Rs.10
each. Motorcycles major Hero Moto Corp (previously Hero Honda) is considering
entry into scooters in collaboration with partners, Honda Motors, after the Japanese
company decided to walk out of Kinetic Honda, their scooter venture with the
Firodias of Pune. Honda Motors recently pulled out of its joint venture with the
Firodias in which it held a 51 per cent equity stake.
Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd
(KHML) have signed a five-year licence and technical assistance agreement under
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which KHML will continue to receive the technical knowhow, critical vehicle parts
and access to Honda's markets even after the sale of Honda stake in KHML to
Kinetic Engineering Ltd (KEL).
- The Company changed the paradigm in two-wheelers by launching the most
powerful
and fast bike- CBZ with a unique feature of Transient Power Fuel Control
(TPEC) system.
23,962,500 bonus shares issued in prop. 1:1.
1999
Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) and 20th Century
Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for
financing of Hero Moto Corp (previously Hero Honda) motorcycles.
The company, a joint venture between Honda Motor Company of Japan and Hero
group of India to produce four-stroke motorcycles, also aims to increase its share
by 1 per cent to 38.6 per cent during the current fiscal. Leading two-wheelers
manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US
to develop and manufacture four-stroke engines for mopeds and scooters in India, a
top company. Honda Motor Company of Japan has decided to re-enter the scooter
market in India as also foray into three-wheelers in a joint initiative with its
existing joint venture company Hero Moto Corp (previously Hero Honda) Motors
Ltd.
2000
Hero Moto Corp (previously Hero Honda) Motors Ltd. and Tata Finance Ltd. have
signed a national tie-up agreement. The Company is the largest manufacturer of
motorcycles in the country. The Company will relaunch its stepthru Stree Smart on
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Baisakhi 13th April. Hero Moto Corp (previously Hero Honda) Motors Ltd
(HHML), has launched an upgraded version of the existing step-through
motorcycle - the Hero Moto Corp (previously Hero Honda) Street. The Company
was ranked as the 9th Highest Value Creator among 12 industry groups within the
Bombay Stock Exchange top 100 companies over a five year period (1994-99).
2001
Hero Moto Corp (previously Hero Honda) Motors Ltd. has launched a new 100cc
motorcycle named `Passion'. The Company has secured shareholders' approval for
splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the
ratio of 1:5.
Hero Moto Corp (previously Hero Honda) Motors Ltd. has become the largest
seller of motorcycles amongst all Honda companies and ventures in the world by
selling one million motorcycles during the current financial year. Credit rating
Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed
Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper
programme and fixed deposit programme of Hero Moto Corp (previously Hero
Honda) Motors.
Promoter-Chairman of the country's largest motorcycle manufacturing company,
Hero Moto Corp (previously Hero Honda) Ltd, Brijmohan Lall Munjal has bagged
the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on
September 27.
The two-wheeler segment can be categorized into the scooter, mopeds, and
motorcycles. Motorcycles: this segment has shown the best performance in the
recent years. The market leaders in this section are Bajaj Auto. TVS, Mahindra,
Hero Moto Corp (previously Hero Honda). [The splendor is the most popular
segment among motorcycles.]
very
clearly
emphasis
inclusive
connectivity, job-creation and improving quality of life. The rural road outlay has
been upped by close to 60 per cent, the budget for the Urban Renewal Mission has
been hiked by 87 per cent, and fund allocation to the ongoing National Highways
program has been upped by 23 per cent. Importantly, India has added fresh impetus
to its flagship job creation program for rural India: the National Rural Employment
Guarantee Scheme. During 2008-09, this scheme, which provides 100 guaranteed
days of work a day for the countrys rural poor, provided employment
opportunities to more than 44 million households last year; a year ago, 33 million
households were covered. During the year, there have been important
developments in two wheeler industry. The competition has strengthened though
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there are hardly any new entrants into the industry. There is an increasing emphasis
on price and this has led to cost cutting efforts all across cent. the industry, thereby,
making the customer an ultimate beneficiary. The trend also saw introduction of
new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate that
many more new models will be launched during the year and provide customers
plenty of choice at competitive prices. Businesses cannot consistently grow at 2530 per cent. Each business has a tendency to taper and plateau after attaining a
particular size. An annual growth rate of 10-12 per cent over a period of time is
extremely healthy. The TCS study rankings are conducted at the motorcycle
segment level to provide comparisons among similar groups of motorcycles.
Motorcycles ranking highest in their respective segments for TCS are: Hero Moto
Corp (previously Hero Honda) splendor plus (best standard motorcycle segment);
Bajaj pulser (best executive motorcycle segment); Hero Moto Corp (previously
Hero Honda) karizma (best premium motorcycle segment); and Royal Enfield
Bullet Electra (best cruiser motorcycle segment). "The relatively low score for the
executive segment indicates that most manufacturers have fallen short of meeting
the high expectations of these buyers,".
In India the two-wheeler provide an easy and popular mode of personal transport
for the middle classes. With public transportation system being inadequate and
ineffective the demand for the two wheeler is likely to rise. The two-wheeler sales
are expected to touch the 5 million mark by the end of the decade as against the
annual sales of 35,49,271 in 2008-09. Technology With liberalization and the
increasing competition. The two- wheeler industry has witnessed technological
changes. The four- stroke engine is being introduced in place of the traditional
populations and fuel inefficient two stroke engine. The smaller capacity engine
with the electronic fuel injection is also being used. Bajaj auto is now feeling the
need to increase its technological competence. Wit the competition cashing in on
the technological competence for their collaborators. Emphasizes being laid on
lighter and fuel- efficient vehicles. A class of vehicle having fuel efficiency of a
moped and sleekness and style of the motorcycles called scooter is growing. The
vehicles offer a fuel efficiency of 60-65 km p/h. They enter into new segment,
Bajaj Auto has come out with TVS with Scooty pep and Hero Moto Corp
(previously Hero Honda) has come out with a Pleasure and upgraded version of
sleek. Government policy The excise duty on two-wheeler , which has previous 10
percent to 30 percent according to the engine capacity, was rationalized is only two
categories size. 15 percent for 75 cc engine capacity and 25 percent for above 75
cc engine capacity the excise duty structure has been left untouched since the
1993-94 budget.
The Indian two-wheeler industry is experiencing a major shift in its shape and
structure. The established players in the industry are taking a hard look at their
portfolio of products and are in the process of reshuffling them to meet the
expectations of customers. The beneficiary is of course the consumer, who has an
30 | P a g e
increased array of products to choose from. The last four-five years have brought
about a great change in the consumer preferences for two-wheelers. The market
leaders of yesteryears are being driven to maintain their leadership position in the
forthcoming years. Those who have had a great going in the last few years are
fighting hard to retain their new supremacy. The two-wheeler industry is perhaps
the most happening place in terms of new models launched, upgraded products and
innovative marketing techniques. Gone are the days of regulation when the
production of scooters and motorcycles was limited to two or three brands and the
number of products produced was decided by the Government; today the Indian
two-wheeler market is highly competitive with numerous players who offer
anything and everything a consumer demands and that too at affordable price.
From a sellers market where one had to wait for a scooter for 12 years to the days
when you can just walk into any showroom and drive out in the vehicle of your
choice, the market of two-wheelers in India has come a long way. But this is only
the beginning of the transformation.
money supply, and reduced liquidity in the economy. By the time inflation started
coming under control, domestic interest rates started shooting up. Meanwhile, the
global crisis erupted, putting further pressure on liquidity levels. By October 2008,
slowdown was clearly apparent in export-intensive sectors, both in the
manufacturing and service side. By December, the slowdown turned into degrowth. The cutback in demand from Europe and the US was so sharp that even a
competitive rupee, which devalued by around 12 per cent during the year, couldn't
act as a buffer. By December 2008, the growth momentum of the first six months
was lost. Planned investment projects were shelved; live projects faced a shortage
of funds as credit flows dried up. As money became dearer, pay packets became
slimmer and risk aversion grew both from the demand and supply side.
Compulsions of coalition politics at the Centre and the impending Lok Sabha
elections didn't help either, and slowed down reforms and implementation of
projects, particularly in critical sectors like roads, ports and power. The worst hit
was the manufacturing sector. From the second half of the financial year, the index
of industrial production contracted on three occasions, remained close to zero on
two occasions, and was mildly positive only once. Two Wheeler Financing
Though two-wheeler are the most preferred from of transport in India, the fact
remains that it is a lower end market product. Most two-wheeler manufacturer like
Bajaj Auto and kinetic engineering have set up their own finance company since
organized financiers do not think the returns are particularly attractive. The
argument given by some financiers is that the price of a Yamaha or Hero Moto
Corp (previously Hero Honda) is so high that people prefer to buy a second hand
car instead. This is particularly true of small town where people desire to own a car
and they have the means the two wheeler is then only a second vehicle for the
family. MARKET MECHANICS: Since 1985, when the first Hero Moto Corp
32 | P a g e
(previously Hero Honda) it has been and instant hit. A mileage miser with just
about adequate performance further backed by image of Honda and Hero Cycles
brand of aggressive marketing, it climbed up the sales chart outselling every other
motorcycle by ten of thousands every year. Over the years, company has received
its share of accolades, including the National Association of India Award against
200 contenders.
Growth
The business growth of Hero Moto Corp (previously Hero Honda) has been
phenomenal throughout its early days. The Munjal family started a modest
business of bicycle components. Hero Group expanded so big that by 2002 they
33 | P a g e
has
an
assembly
line
of
different
day.
models
Today
Hero
of motorcycles
available. It holds the record for most popular bike in the world by sales for Its
Splendor model. Hero Moto Corp (previously Hero Honda) Motors Limited was
established in joint venture with Honda Motors of Japan in 1984, to manufacture
motorcycles. It is currently the largest producer of Two Wheelers in the world. It
sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter
manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group
has done business differently right from the start and that is what has helped them
to achieve break-through in the competitive two-wheeler market. The Group's low
key, but focused, style of management has earned the company plaudits amidst
investors, employees, vendors and dealers, as also worldwide recognition. The
growth of the Group through the years has been influenced by a number of factors:
Just-in-Time
The Hero Group through the Hero Cycles Division was the first to introduce the
concept of
just-in-time
inventory.
The
Group
boasts
of
superb
operational
efficiencies.
simultaneously to save time and improve productivity. The fact that most of the
machines are either developed or fabricated in- house,
has resulted
in
low
Ancillarisation
An integral part of the Group strategy of doing business differently was providing
support to ancillary units. There are over 300 ancillary units today, whose
production is dedicated to Hero's requirements and also a large number of other
vendors, which include some of the better known companies in the automotive
segment. Employee Policy: Another Striking feature within the Hero Group is the
commitment and dedication of its workers. There is no organized labor union and
family members of employees find ready employment within Hero. The
philosophy with regard to labor management is "Hero is growing, grow with
Hero." When it comes to workers' benefits, the Hero Group is known for providing
facilities, further ahead of the industry norms. Long before other companies did
so, Hero was giving its employees a uniform allowance, as well as
House Rent
Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the
form of medical check-ups, not just for workers, but also for the immediate family
members.
Dealer Network
The relationship of Hero Group with their dealers is unique in its closeness. The
dealers are considered a part of the Hero family. A nation-wide dealer network
comprising of over 5,000 outlets, and have a formidable distribution system in
place. Sales agents from Hero travels to all the corners of the country, visiting
dealers and send back daily postcards with information on the stock position that
35 | P a g e
day, turnover, fresh purchases, anticipated demand and also competitor action
in the region. The manufacturing units have a separate department to
handle dealer complaints and problems and the first response is always given in 24
hours.
Financial Planning
The Hero Group benefits from the Group Chairman's financial acumen and his
grasp on technology, manufacturing and marketing. Group Company, Hero Cycles
Limited has one of the highest labor productivity rates in the world. In Hero Moto
Corp (previously Hero Honda) Motors Limited, the focus is on financial and raw
material management and a low employee turnover.
Quality
Quality at Hero is attained not just by modern plants and equipment and through
latest technology, but by enforcing a strict discipline. At the Group factories,
attaining quality standards is an everyday practice - a strictly pursued
discipline. It comes from an amalgamation of the latest technology with deeprooted experience derived from nearly four decades of hard labor. It is an attitude
that masters the challenge of growth and change - change in consumers'
perceptions about products and new aspirations arising from a new generation of
buyers.
Constant technology up gradation ensures that the Group stays in the global
mainstream and maintains its competitive edge. With each of its foreign
36 | P a g e
collaborations, the Group goes onto strengthen its quality measures as per the
book. The Group also employs the services of independent experts from around the
world to assist in new design and production processes.
Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has
actively looked
at
diversification.
considerable
level
of
backward
Auto
Components
and
Munjal
which
includes
customer
response
services
and
software
right
attitudes
and
building
stronger
38 | P a g e
PRODUCTS PROFILE
New Launches:
39 | P a g e
Glamour
Just4her
Glamour PGMFI
CD Deluxe
CBZ X-Treme
Achiever
Next
Pleasure
Splendar NXG
Generation
of
Motorcycling
Hunk
Karizam
a
Campaigns:
We got a Good thing Going!
40 | P a g e
Best Seller
Economical Honours
Others:
World's No.1!
of
Najafgarh
41 | P a g e
Designed
Excel
Achiver Model:
Achiver Model:
Kick Start
CBZ
Xtreme ES
CD
42 | P a g e
Xtreme
Kick
Deluxe
Start
Model:
Glamour Model:
Electric Start
Model:
Glamour Model:
FI ES
Glamour
FI Kick Start
Kick Start
Model:
Hunk
Kick Start
Model:
New Model:
Karizma
Plus
NXG (Spoke)
Plus
Splendor
Model:
CBZ* Model:
CBZ* Model:
CD 100
Kick Start
Electric Start
SS
Model: Dawn
Model: Karizma
Model: Passion
Street Model:
Super
43 | P a g e
Dlx
Splendor KS
safest
Company
Hero
on
Moto 4-
Corp
jet
Stroke
the
road.
Displaceme
nt
(previously
Hero Honda)
44 | P a g e
Motors Ltd.
Striking Features
Style
Sporty position of the seat.
It stands on its feet even at speeds reaching up to
130 kmph.
Fuel Efficiency.
Color Variants
Pearl Composed Red
Myth Gold Metallic
Sparkling Silver
Turquoise Blue
Candy Blazing Red
Black
Moon Yellow
45 | P a g e
46 | P a g e
1160 mm
Overall length
2125 mm
Overall Width
755 mm
Wheelbase
1355 mm
Ground Clearance
150 mm
Kerb weight
150 kg
15 litres
Engine
Type
Stroke (2/4)
4-stroke
No. of cylinders
Single Cylinder
Displacement
223cc
Electrical
12 V, 7.0 Ah
Transmission
No. of Gears
5 speed
Clutch
Performance
Maximum Power
16.8bhp @ 7000rpm
Max. Torque
Start
Kick / Electric
47 | P a g e
Suspensions
Telescopic
Hydraulic
Shock
Models
Hunk
Model
of
Price Ex.Showroom(Mumbai)
Engine
Price
149.2 cc
Rs. 59,749
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Specific
ations
Colors
Ground Clearance
145 (mm)
Fuel Tank Capacity
12.4 (L)
Reserve Tank Capacity
2.2 (L)
Self Kerb weight
146 (kg)
Kick Kerb weight
143 (kg)
Performance
Max Speed
Acceleration(0-200m)
-
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100/90 X 18 - 56P (W
Front Brake Drum
Front Brake Disc
240 (mm)
Rear Brake Drum
130 (mm)
Rear Brake Disc
Engine and Transmission
Engine Type
Air Cooled, 4 - Stroke Single Cylinder O
Engine response
Displacement
149.2 cc (cc)
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Net Power
14.4Ps@8500rpm
Torque
12.8Nm@6500rpm
Air Filter
Carburetor
CV
ACG Power Generating Capacity
Oil Capacity
Transmission
Gear Shift Pattern
-
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Electricals
Ignition
Battery In Kick Start
12V -7 Ah
Battery In Self Start
Headlamp
12V - 35 / 35 W
Tail / Stop lamp
12 V - 5W, 12V - 21W
54 | P a g e
Another
Metre
Colour
View
Models
Achiever
Model
Hero
Engine
Moto
(previously
Price
Corp
Hero 149.1
Rs. 53,200
Specificati
ons
Colors
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Width
Height
Wheelbase
1290 (mm)
Seat Height
Ground Clearance
12 (L)
134 (kg)
Performance
Max Speed
101 (kmph)
Acceleration(0-200m)
5 (Sec)
Diamond Cradle
Front Suspension
Telescopic hydraulic
Rear Suspension
Swing Arm
Front Tyre
2.75 X 18 - 42 P / 4
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Rear Tyre
3.00 X 18 - 52 P / 6
240 (mm)
130 (mm)
Engine response
Displacement
149.1 (cc)
Net Power
13.4bhp@6500rpm
Torque
12.8nm@5000rpm
Air Filter
Carburettor
ACG
Power
Capacity
Generating
Oil Capacity
Transmission
5-Speed
Electricals
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Ignition
12V - 2.5 Ah
Headlamp
35/35 W Halogen
Herohonda-Glamour
Hero Moto Corp (previously Hero Honda) Glamour is
equipped with all the required market friendly features. Two models of
this bike are based on all the technological advances. It is the bike for
every kind of customers and with different choices. This bike comes
with all the facilities that all finicky bike lovers really look for in his best
possession
Available
of Glamour
Model
Models
Price Ex.Showroom(Mumbai)
Engine
Price
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Herohonda
124.8
Glamour Fi
Rs. 53,000
Herohonda Glamour Fi
Price Rs.53,000
Price Ex. Showroom (Mumbai)
Specificatio
Colors
ns
2005 (mm)
Width
735 (mm)
Height
1070 (mm)
Wheelbase
1265 (mm)
Seat Height
Tank
Capacity
Reserve
Tank
Capacity
Self Kerb weight
12 (L)
1.5 (L)
129 (kg)
Performance
Max Speed
Acceleration(0-
200m)
Overtaking
Acceleration
for
200
(at
40kmph)
Acceleration
(0-
60 kmph)
Mileage (in Indian
Mode)
2.75 x 18 - 42 P
Rear Tyre
3.0" x 18 - 52 P
61 | P a g e
Air-Cooled,
4-
stroke OHC
Engine response Displacement
124.8 (cc)
Net Power
9.0bhp@7000rp
m
Torque
10.3Nm@4000rp
m
Air Filter
Carburettor
ACG
Power
Generating
Capacity
Oil Capacity
Transmission
4-Speed
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Battery
In
Kick
In
Self
Start
Battery
Start
Headlamp
35W
35W
Halogen
Tail / Stop lamp
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Research Methodology
Research methodology is considered as the nerve of the project. Without
a proper well-organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the survey
plan. The main objective of survey was to collect appropriate data,
which work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods
but also logic behind the methods used in the context of a research study
and it explains why a particular method has been used in the preference
of the other methods
Research design
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to
the researchers. In fact, it is the key to the evolution of successful
marketing strategies and programmers. It is an important tool to study
buyers behavior, consumption pattern, brand loyalty, and focus market
changes. A research design specifies the methods and procedures for
65 | P a g e
rigid and its approach cannot be changed every now and then. It is
therefore necessary, the researcher give sufficient thought to framing
research.
Questions and deciding the types of data to be collected and the
procedure to be used in this purpose. Descriptive studies can be divided
into two broad categories: Cross Sectional and Longitudinal Sectional. A
cross sectional study is concerned with a sample of elements from a
given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from sample
elements are collected and analyzed. Cross sectional studies are of two
types: Field study and Survey. Although the distinction between them is
not clear- cut , there are some practical differences, which need different
techniques and skills. Field studies are ex-post-factor scientific
inquiries that aim at finding the relations and interrelations among
variables in a real setting. Such studies are done in live situations like
communities, schools, factories, and organizations.
Another type of cross sectional study is survey result, which has been
taken by me. A major strength of survey research is its wide scope.
Detail information can be obtained from a sample of large population
.Besides; it is economical as more information can be collected per unit
of cost. In addition, it is obvious that a sample survey needs less time
than a census inquiry. Descriptive research
67 | P a g e
includes survey and fact finding enquiries of different kinds of the major
purpose. Descriptive research is description of the state of affairs, as it
exists at present. The main characteristic of this method is that the
researcher has no control over the variables; he can only report what has
happened or what is happening. The methods of research utilized in
descriptive research are survey
methods of all kinds including comparative and co relational methods.
The reason for using such needs to be flexile in its approach, but a
descriptive study
BRANCH
1 2 3 in contrast tends to be rigid and its approach cannot be changed
ever now and then.
DEALER MANAGEMENT
Mapping of regional dealers.
They have been divided into three categories on the basis of their
turnover and the selling capacity.
-1
-2
-3
68 | P a g e
-1 Includes the modern trade and they have direct billing from the
branch office. They have high turnover and the company depends
heavily on them
-2 includes the distributors. They have direct billing from the branch
office. Their turnover is also high.
-3 Includes the sub dealers .They have direct billing from distributors or
from the branch office. Their turnover is not so high, but there are few
sub dealers whose potential is quite high. According to sales the branch
has designated as gold and silver sub dealers.
69 | P a g e
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common base line and are equal widths. The lengths of the bards are
proportional to the value they represent.
Preparation of report:
The report was based on the analysis and presented with the findings and
suggestions. The sample of the questionnaires is attached with the report
itself.
Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The
one is made for the Customer.
No. of questions in questionnaires for customer: 12
No. of question related to Hero Moto Corp (previously Hero Honda) :
06
No. of people met during the research: 100
No. of respondents during the research: 90
Sample unit Professionals, Business man,
Employees, Students
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30
Bajaj
30
Any other
30
73 | P a g e
Bajaj
TVS
Splender
13
CT 100
Flame
Passion
Discover
11
Star City
Karizma
Pulsar
10
Apache
Any other
10
Any other
Any other
10
Any other
Karizma
Passion
Splender
10
12
14
16
BAJAJ
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100000-200000
22
200000-300000
45
300000-400000
23
above 400000
10
34
1-2 year
29
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2-3 year
26
above 3 year
11
TVS
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38
Office Purpose
13
42
Personal purpose
17
15
27
Joy Purpose
10
18
10
Other
40
15
15
INTERPRETATION:- The customers are using their bikes mostly for official and
personal purpose.
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TVS
Bajaj
Newspaper
28
33
22
Television
22
28
18
Magazine
16
28
37
13
22
65
No
15
Cant say
20
No; 15%
Yes; 65%
Q8 Are you satisfied with the performance of the bike that you are
80 | P a g e
currently havin?
Yes
55
No
28
Cant say
17
Yes; 55%
No; 28%
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TVS
Yes
42
34
37
No
37
27
22
Cant Say
11
29
31
82 | P a g e
TVS
Price
17
22
28
Mileage
28
15
15
Quality
11
20
16
Resale Value
12
14
17
Status symbol
32
19
14
HERO MOTO CORP (PREVIOUSLY HERO HONDA)
BAJAJ
83 | P a g e
INTERPRETATION: - In TVS bike the economic price of the bikes influences the
buying behavior of the customers.
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Q11) How would you rate the following factors of Bikes with respect to
different company?
Hero Honda
Bajaj
TVS
Mileage
74%
72%
68%
Price
68%
65%
47%
Pick up
70%
80%
62%
Maintenance
Look &
Shape
58%
62%
74%
85%
80%
72%
Brand Image
53%
55%
69%
to the pick up. At the third level they rate mileage. And at the fourth level they give
points to maintenance. At last they rate price and brand image.
Q12) If new Bike with good features comes in, then would you like to change
your bike?
Hero Moto
Corp
(previously
Hero Honda)
TVS
Bajaj
Yes
10
16
14
No
16
11
11
Cant say
bike comes in with good features. While majority of the customers of Bajaj and
TVS are ready to change their bikes if new bike provides some good features to
them.
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FINDINGS
During this research project I came in to contact with many customers who
are having bikes. It has been found that in Hero Moto Corp (previously Hero
Honda) mostly the customers are having splendor while the ratio of the customers
using Passion, Karizma and other bikes are comparatively low. In Bajaj the
customers are giving more preference to Discover and Pulsar models and in case of
TVS Bikes the customers are givig more preference to the other models rather than
Flame,Starcityand Apache. The maximum numbers of customers that are using
these bikes fall in the income group of 200000-300000.
It has been observed that the customers are using their bikes mostly for
official and personal purpose. It is observed that the awareness of Hero Moto Corp
(previously Hero Honda) bikes mostly comes from friends while of Bajaj and TVS
the awareness comes from newspapers and televisions. Out of the sample size of
100 customers, 65 customers agree with the fact that advertisements play a very
significant role in influencing their behavior to choose the bike. On the other hand
15 customers do not agree to this fact. While remaining 17 customers are not sure
about it.
When the customers are asked that are they satisfied with the performance of
their bikes then most of them agrees to the fact. Out of the sample size of 90
customers, 55 customers says that they are satisfied with the performance of their
bikes. On the other hand 28 customers are not satisfied with the performance of the
bikes that they are having. While the remaining 10 customers are unable to say
anything. It is observed that most of the customers are having full knowledge of
the bike before purchasing
89 | P a g e
It has been seen that In Hero Moto Corp (previously Hero Honda) bikes the
mileage of the bike and the value that it adds to the status symbol of the customers
influences the decision criteria of most of the customers. In Bajaj bikes customers
gets more influenced by the price and quality of the bike and also they think that it
adds value to their prestige. While in case of TVS bike the economic price of the
bikes influences the buying behavior of the customers.
It is observed that in rating of different features of different bikes people
give maximum rating to the look and shape of the bike. At the second level they
give their rating to the pick up. At the third level they rate mileage. And at the
fourth level they give points to maintenance. At last they rate price and brand
image.
It is observed that the customers of Hero Moto Corp (previously Hero
Honda) bikes are not ready to change their bikes even if a new bike comes in with
good features. While majority of the customers of Bajaj and TVS are ready to
change their bikes if new bike provides some good features to them.
90 | P a g e
CONCLUSION
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1. Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young
generation 18 to 30 years because they prefer stylish looks and rest of the
models of Hero Moto Corp (previously Hero Honda), TVS and Bajaj are
purchased more by daily users who needs more average of bikes than looks.
2. Hero Moto Corp (previously Hero Honda) is considered to be most fuelefficient bike on Indian roads.
3. Service & Spare parts are available throughout India in local markets also.
4. While buying a motorcycle, economy is the main consideration in form of
maintenance cost, fuel efficiency.
5. Majority of the respondent had bought their motorcycle more than 3 years.
6. Number of products is large in comparison to others
7. The distribution policies are more efficient then any other company .
8. Hero Moto Corp (previously Hero Honda) make more stress on advertisement
on television and help there dealers for local advertisement.
9. The pricing policy of Hero Moto Corp (previously Hero Honda) is for better
than the pricing policy of the competitors.
10.Now the performance of Hero Moto Corp (previously Hero Honda) product is
also very good regarding to the bike owner of the Hero Moto Corp (previously
Hero Honda).
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RECOMMENDATIONS
1.
Hero Moto Corp (previously Hero Honda) should think about fuel efficiency
in case of upper segment bikes.
2.
94 | P a g e
3.
Maintenance cost and the availability of the spare parts should also be given
due importance.
4.
5.
6.
7.
8.
Looks of Hero Moto Corp (previously Hero Honda) bikes should be modified.
9.
The company can affect the market through linking the brand with Indian
tradition and culture.
10.
11.
The company should followed some sale promotion strategies like exchange
offer, discount etc.
12.
13.
The company should provide the incentive plan to the sales persons of the
showroom.
14.
The company should provide a Gift Boucher like key ring, manual bag,
calendar etc. to the bike owner
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BIBLIOGRAPHY
1. www.herohonda.com
2. www.google.com
97 | P a g e
3. www.bajaj.com
4. www.twowheeler.com
5. www.extrememachines.com
BOOKS:
Marketing Management (Philip Kotler)
Marketing Management ( Rajan Saxena)
Foundation of Advertising Theory & Practice
(S.A.Chunawala /K.C. Sethia.)
Fundamental of Marketing
(Etzel Machel / J.Bruce.Walker)
SOURCE
Advertising and Marketing
Annual Report of Hero Moto Corp (previously Hero Honda)
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QUESTIONNAIRE
NAME: -
CONTACT NO .
AGE:-
15-20
20-25
30
OCCUPATION:-
Above 30
Businessman
Student
Employee
Other
99 | P a g e
Bajaj
TVS
TVS:-
Splendor
Other
CT 100
Discover
Pulsar
Other
Flame
Apache
Star city
Other
200000-300000
300000-400000
Above 400000
1-2 year
2-3 year
above 3 years
Personal Purpose
Other
Newspaper
Television
Magazines
Friends/Relatives
Q7) Are you satisfied with the performance of the bike that you are currently
having?
Yes
No
Cant say
No
Cant say
No
Cant say
Mileage
Resale Value
Quality
Status Symbol
Q11) How would you rate the following factors of bikes with respect to
different companies?
Hero Moto Corp (previously Hero Honda)
Bajaj
TVS
Mileage
Price
Pick up
Maintenance
Look/Shape
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Brand Image
Q12) If new bike with good feature comes in, then would you like to change
your bikes?
Yes
No
Cant say
Date:
(Signature)
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