This action might not be possible to undo. Are you sure you want to continue?
Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a view of the whole business organization and its ultimate objective concern for marketing must penetrate all areas of the enterprise. Market survey in today’s competitive world is a must for every organization. This project is a study of market potential of Hero Honda. The rational behind this particular study is to find out the present m arket scenario of various brands & to find out the corporate need and perception. It was a pleasurable experience to conduct a research on behalf of Hero Honda pertaining to the study of the Automobile Sector. To carry out this research a sample study was pursued where the target was made to the people of Delhi region. Various statistical and analytical tools and techniques are applied to ascertain and depict the present scenario. Conclusion and there by recommendation has been arrived at by proper and justified interpretation of the result derived from the above said analytical tools and techniques.
MISSION STATEMENT IN PURSUIT OF EXCELLENCE
“We, at Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and process, and develop teams that keep the momentum going to take the company to excellence in the new millennium”.
1.1 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA
• • •
The Automobile sector is one of the fastest growing manufacturing sectors in India. In the 90s the industry witnessed an average growth rate of above 20 percent. Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two wheeler production, ranking second only to Taiwan. The world leaders in the sector are evincing keen interest in establishing manufacturing facilities for manufacturing and assembling components. A politically stable and vibrant State, Andhra Pradesh is centrally located with the support of seaports, international airports, assured and reliable power supply, abundant water, broad base of auto component manufacturers, highly trained, skilled and disciplined manpower and is therefore, the preferred location for Automobile industries.
The interest of the state has been duly noted by Global Auto Majors, who have indicated their interest to consider Andhra pradesh for establishing manufacturing facility.
The Government of Andhra Pradesh invites leaders in the industry to set up manufacturing facilities to manufacture vehicles or vehicle components in the State. The ideal places to locate companies in the Auto Sector are the HyderabadZaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur corridors.
The Government is also formulating an Auto Policy, which would give a proper direction to the growth of the sector. There are more than 20 auto –component manufacturing companies in the State, manufacturing components such as grey-iron castings, precision aluminium castings, leaf springs,oils and lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical, front axles, gears, forging, machined components, pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure die castings, clutch covers, fuel filters ,etc.
Most of these components are presently being supplied to Hero Honda, TVS Suzuki, Escorts Yahama, Bajaj and others. Amaron Batteries are manufactured in Chittoor district. Around 119 components manufacturers have been certified for ISO 9000 quality standards and seven companies achieved the QS 9000 quality standard set by government and motors association.
1.2 ABOUT THE COMPANY
Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich background of producing high value products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer. It was this affinity in working cultures of Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a Honda record worldwide. Tactical promotions and excellent marketing helped Hero Honda establish itself as an intelligent purchase. Its unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country.
Finance services helped facilitate purchase, as did an efficient dealer network across the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise. Over the years, the Company has received its share of accolades, including the National Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders.
Its main Models are
o o o o o o o
cd100 cd100ss street smart passion Karizma CD dawn Ambition 135
1.4 VISION OF THE COMPANY The Legend of Hero Honda
What started out as a Joint Venture between Hero Group, the world’s largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World’s single largest two wheeler Company. Coming into existence on January 19, 1984, Hero Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the ‘Fill it – Shut it – Forget it ‘ campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expensive dealer network, and reliable after sales service, and you have one of the most customer-friendly companies. This is proved by the company’s sales over the years: 1985.86 1989.90 1998.99 1999-00 2000-01 2001.2 2002.3 43,000 units 96,200 units 5,30,600 units 7,61,210 units 10,29,555 units 14,25,195 units 17,78.392 units
Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group’s dynamism have developed HTML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing Director, “We will continue to make every effort required for the development of the motorcycle industry,
through new product development, technological innovation, investment in equipment and facilities and through efficient management”.
1.5 HISTORICAL REPRESENTATION
The following are the historical facts of the company : 1984 Company incorporated. Technical collaboration signed. Foundation stone lay. 1983 - shareholders agreements signed. 1985 First motorcycle (Model CD 100) produced. 1987 1989 1991 5,00,000th motorcycle produced. CD-SS model introduced. Economic times – Harward business school award for excellent Governance Sleek model introduced. Engine plant started. 1,00,000th Motorcycle produced.
to Hero Honda Motors Ltd.
1993 Hero group sponsors Hero cup five nations cricket tournament
1994 Splendor model introduced.
1995 National Award for outstanding contribution to the development of Indian The analyst award 1995 presented to Hero Honda Motors Ltd. on being small scale industry (NSIC Award presented by President of India) ranked 9th amongst the most investor rewarding companies in India. 1996 1997 1998 20,00,000th motorcycle produced. 1st Hero Honda Master golf championship held at Delhi. 15,00,000th motorcycle produced. Street model introduced. Hero sponsored 6th women world cup cricket tournament. 1000 motorcycle per day production started.
1999 30,00,000th motorcycle produced. CBZ model introduced. 7th World Cup Cricket tournament sponsored at England. Most admired business Baron CEO award conferred upon the Chairman
Brij Mohan Lal Munjal.
2001 Passion and Joy motorcycle launched. One million motorcycles produced in one single year. 50,00,000th bike produced. Winner of the review-2000-Asia’s leading companies’ award 2000. National productivity award for the best performance in automobile and Sir Jahangir Ghandy medal for industrial peace awarded to Brij Mohal Lal
tractors. by XLRI Jamshedpur. 2002 Declared “company of the year” by economic times business award. Chairman Brij Mohan Lal awarded the “entrepreneur of the year” award by Ambition launched.
Declared “company of the year” by economic times business Karizma the sports segment bike launched.
award for the second time.
This all says about the golden past of the company and the company is going on to the path of success.
1.6 INDUSTRY SCENARIO
In the present scenario of automobile industry the major companies are: Manufacturers HERO HONDA BAJAJ AUTO LML TVS YAMAHA ENFIELD Products Motorbikes Scooter+Motorbikes+ Scooterate Scooter+Motorbike+Scootrate Motorbikes+Scootrate Motorbikes Motorbikes % of market share 75% market share 25% market share 30% market share 15% market share 15% market share 10% market share
According to the recent results company (Hero Honda) registered a sales increased by 24.5% over the past years. Same month TVS also registered increase of 45% while the other companies are not enjoying quiet good increase in sales. While the whole industry registered an increase of about 17% only. So in present scenario the Hero Honda comes as the leader of whole automobile segment while there is immense competition in industry to get the highest market share.
The company signed the Indian skipper of cricket team Saurav Ganguly, Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand ambassadors joining the add campaign together to promote “Ambition”. All of these celebrities are the member of Indian cricket team and very much popular in younger generation. In the last year with the launch of its new premium bike Karizama Hero Honda signed its new brand ambassador who is a cine star and is also very popular. He is Hritik Roshan.
Service Your Bike
Hero Honda has always taken a lead in terms of defining service standards in two wheeler industry with an aim to provide "Total Customer Satisfaction" for their valuable customers across the country and also internationally. We are constantly endeavoring to improve the quality of our service facilities at our Dealerships. The first and foremost step to achieve this was creating Automated Workshops at our Authorized Dealerships and Service Centers across the country.
Hero Honda has the largest chain of Automated Workshops providing service to their valuable customers by using latest service technology. Automated Workshops have standard layout, hydro electric motor cycle lifts, dust free engine rooms and use pneumatic tools and equipment to ensure quality repair in customers motorcycle. The workshop environment and usage of pneumatic tools increases mechanics efficiency and their motivation to provide quality service. The layouts have been standardized to ensure that there is a transparency of service. The customers can view their motorcycle repair while sitting comfortably watching TV or relaxing in the customer lounge. Workshop Automation has become a mandatory service standard for all Hero Honda Dealers and Service Centers.
The regular Technical Training Programmes for Dealers Workshop staff to keep them updated and refreshed about the latest price technology, product technical details as well as service and repair procedures to handle customers motorcycle with utmost care as well as to provide them the service quality of highest order is a focus area at Hero Honda. Hero Honda has six (06) training centers across the country. There are 05 zonal training centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take care of technical training requirements of dealers in each zone as well as local technicians. There is a National Training Center at Dharuhera to take care of all advanced level technical programmes for our dealers staff and our in house service engineers. Hero Honda keeps an organizing Dealers Mechanics Contest at Zonal Level and National Level to develop competitive spirit among mechanics as well as in the process to update their skills and product knowledge.
Hero Honda keeps on taking always-new initiatives to maintain its leadership on service as well as enhance customer satisfaction level on an ongoing basis. Some of the new initiatives related to customer service are as follows: · Service Advisors at Dealerships · Service Plus Scheme for customers · Pre Paid Reply Cards · Automated Mobile Service Workshops · Mega Millennium Camps · On the Job Training Programmes · Local Mechanics Training There are many more initiatives, which we keep on taking along with our dealers to keep our customers always in our mind on top priority.
Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)
Hero Honda is also launching very soon a novel concept and a very major initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)
Safety Education to motorcycle customers shall be an integral part of Hero Honda's motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding techniques through various audio visual aids. Safety Instructors shall be imparting riding skills as well as education to the customers. Dealers shall also conduct a major programme in their respective towns with the association of local traffic police on a regular basis on safety education and correct riding techniques.
2.1 OBJECTIVE OF THE STUDY
The study was done primarily with the following objective in mind. To study the brands of Hero Honda & consumers perception with its competitors. To know why people buy Hero Honda and why some people prefer other company. To study the features of different brands that give a good idea of various products and services offered by the company. To understand the competitive environment in which the company is operating and is desired to meet customer need and satisfaction. To provide useful information to the company about the product features of various competing companies.
The methodology used in conducting the research work on HERO HONDA with major emphasis on its sales and marketing strategies involve the following steps:
Why I have selected HERO HONDA only?
I have selected Hero Honda for my summer training because it is the company that is growing day by day. It has maximum market share with comparison to its competitors. And it is the company that gives highest sales and it is also the highest two-wheeler manufacturer.
Defining the problem and deciding research objectives:
Defining the objective is the most important part of any study process. Proper defining of the problem is a must for proceeding further with the research process. The type of study to be carried out, the questions to be raised, the sampling procedure to be followed, and the data to be collected, all depends on a correct understanding of the problem. Also, by clearly focusing on the real problem, the research job can be simplified and completed with the minimum cost, effort and data. Identified problem or the objectives of the research discussed in the report are:
1. Developing the research plan:
In this a plan was developed about how to collect the require information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research. It is the raw material with which a researcher functions. Therefore, it requires great care to select the sources of data. Data, or facts, may be obtained from several sources. Data sources can either be primary or secondary.
A. Secondary data:
The sources from which secondary data was collected: • • • • • Press releases of the company. Newsletters and In-house journals. Brochures and detailed descriptive leaflets Magazines like Business World, Outlook, Auto India, etc. Websites such as www.herohonda.com, www.google.com. These were the sources from which secondary data has been gathered. Most of the information presented in this report was extracted from the above data sources.
B. Primary data:
Collection of primary data was conducted by visiting the people preparation of the report. personally for the
2. Research approach:
It means the way by which the information was collected. Visiting the various places of Delhi, getting the questionnaire filled by different individuals.
Beside this, frequent visit to the showrooms of the company was of great help to conduct the analysis and research work.
3. Contact methods:
Instrument or Data collected Forms: It is the method by which data is gathered. It could be done through various instruments like questionnaires, observations, getting information from the staff members of the agency, contacting to the motor mechanics was sufficient enough to conduct the study.
4. Collection of information :
The primary information was collected by face-to-face and direct interviews with the peoples and the customers. They provide the relevant information regarding the profile of the company as compared to the other company in the Indian market. Most employees suggested visiting company’s web site, as it was not possible for them to spare time from their busy schedules. The secondary sources of information were various web sites of the companies, newspapers & magazines such as The times of India, The Hindustan Times, Business world, Auto India, etc.
5. Analyzing the information:
The data collected was carefully analyzed. The research and analysis of the information has been done on the basis of various sales and marketing strategies adopted by the company during its tenure.
6. Reporting and conclusions and recommendations:
This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in the form as prescribed. The major part of the report is the findings. The finding also includes charts, tables and diagrams etc. The report also mentioned the limitations of the project undertaken. Then conclusion has been drawn out of the findings and various recommendations have been given at the end of the report. Certain tables on the basis of which the findings were made have been included in the appendices section followed by the bibliography.
2.3 SCOPE OF THE STUDY
Hero Honda is spreading its wings and widening its business horizon to reach and serve customers at new centers in the year ahead. The company services are backed by a highly motivated and technology driven team to achieve customers need, product expertise and geographic reach. The study is oriented towards the concept of different brands offered by Hero Honda and its competitors to its customers. The company has endeavored to move fast in providing market solution, which maximize customer needs and convenience, using multiple delivery channels in composing the agency network, service centers, lower service cost and increased efficiency.
2.4 LIMITATIONS OF THE STUDY
As said a basic research was conducted at the company to enable the company to assess how far the customers are satisfied with product and services of Hero Honda. During the course of the study the following limitations were observed:
The method will be unsuitable if the number of persons to be surveyed is very less as it will be difficult to draw logical conclusions regarding the satisfaction level of customers. Interpretation of data may vary from individual depending on the individual understanding the product features and services of the company. The method lacks flexibility. In case of inadequate or incomplete information the result may deviate. It is very difficult to check the accuracy of the information provided. Since all the products and services are not widely used by all the customers it is difficult to draw realistic conclusions based on the survey.
The Hero Honda CBZ (pronounced CeeBeeZee) is the latest offering from Hero Honda for the Indian market. With a 156cc engine, the company claims that the bike has a top speed of 100kph within 5.6 seconds. Though the bike has the largest displacement engine, its top speed doesn’t match up to many of its competitors. In all other respects, it is a bit too early to decide whether the CBZ will sell in the same numbers as the Splendor. Though the initial market response has been good, only time will be the final arbiter.
Engine : Four-stroke/petrol Transmission : Four-speed Engine Displacement : 156cc Tachometer : Yes Max Power : 12.8b hp@8000 rpm Wheel base: 1,330mm Ground Clearance: 160mm Ignition : Electronic CDI Dry Weight: 140kg Fuel tank Capacity: 12.5itres Battery: 12V Max Torque: 1.26kgm@6500rpm Bore x stroke: 63.5mmx49.5mm Max Speed: 120kph Front Tyre size : 3.25x19" Rear Tyre size: 3.50x19"
A combination of style and economy makes the Splendor is a bike worth investing in. The latest from the Hero Honda factory offers
both performance and looks. It has good looks, excellent handling characteristics and a smooth drive over any type of terrain, thanks to the changes in the suspension at front and near as well as the new frame design. All these features contribute to the Splendor being one of the best selling four stroke-two-wheelers in India. It also meets all the current pollution standards. A healthier beat, springy ride and overall low maintenance has aided in the recordbreaking sales of this bike.
Engine : Four-stroke/petrol Transmission : Four-speed Engine Displacement : 97.2cc Tachometer : No Max Power : 7.2b hp@8500 rpm Wheel base : 1,230mm Ground Clearance : 159mm Ignition : Electronic Dry Weight : 100.3kg Fuel tank Capacity : 10.5itres Battery : 12V F/R suspension : Tel Hydraulic fork R/R suspension : Swing arm and Hydraulic damper Max Speed : 90kph Front Tyre size : 2.75x18" Rear Tyre size : 2.75x18"
S tr e e t
1 0 0
The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The Hero Honda Street 100 is equipped with unique features like city-clutch, which is designed specially for city driving. It has rotary gears, which allow the rider to flip directly from the fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-and-go’ traffic. A self-starter button comes as an option. The Street can be purchased with a variety of seat layouts and has options like a water pump, spray can, larger luggage tray, etc. Its major competitor is the much cheaper K4 from Kinetic. Major plus points that justify the higher price are the centrifugal clutch and the rotary gears. However, the liberal use of plastics negates much of the ‘feel good’ factor and has hindered sales to a large extent.
Engine : Four-stroke/petrol Transmission : Four-speed Engine Displacement : 97.2cc Tachometer : N/A Max Power : N/A Wheel base : 1,205mm Ground Clearance : 133mm Ignition : Electronic Dry Weight : 101kg Fuel tank Capacity : 11litres Battery : 12V F/R suspension : Telescopic R/R suspension : Swing arm and Hydraulic dampers Max Speed : N/A Front Tyre size : 2.25x17" Rear Tyre size : 2.50x17"
The CD100SS is designed for those who live life in the fast lane, rough and tough, for those who would love to take a bike on the stumbling village roads. It shares almost all components with the CD100, except for the additional reinforcement. With larger, reinforced shock absorbers, wider tyres, heavier body weight and engine guard, the Hero Honda CD 100 SS weights slightly more, resulting in some cut down in the fuel economy it offers. Minor problems of the CD100 have been rectified in the SS model. If you wish to ride into the hinterland, this is the bike for you.
Engine : Four-stroke/petrol Transmission : Four-speed Engine Displacement : 97.2cc Tachometer : No Max Power : 7.0bhp@8000rpm Wheel base : 1,220mm Ground Clearance : 165mm Ignition : Electronic Dry Weight : 103kg Fuel tank Capacity : 10.1litres Battery : 12V F/R suspension : Tel Hydraulic fork R/R suspension : Swing arm and Hydraulic damper Max Speed : 85kph Front Tyre size : 2.57x18" Rear Tyre size : 3.00x18"
Engine Displacement Clutch type 4-stroke, single cyclinder, air-cooled 97.2cc Manual
Clutch Primary Clutch Secondary Transmission Final Drive Ignition Starting Frame Suspension (Front) Suspension (Rear) Dimensions (LxWxH) Wheel Base Ground Clearance Dry Weight Tyres:Front/Rear Max.Power Max.Speed Fuel Tank Capacity
Multi-plate wet 4-speed constant mesh Roller chain Electronic Kick starter T-Bone type Telescopic hydraulic fork Swing-arm with hydraulic dampers 1885x770x1060mm 1210mm 135 mm 95 kg 2.50"x18"/2.75"x18" 7.0 PS @ 8000 rpm 85 Kmph 10.1 ltr(1.3 ltr reserve)
A m b
it i o n 1 3 5
Engine Displacement Maximum Power Maximum Speed Gears Frame Tyres: (Front) Tyres: (Rear) Headlight Fuel Efficiency
4 stroke 133 cc 11 BHP / 11.15 PS @ 8000 rpm 100 KMPH 5 Tubular single cradle, diamond type 2.75 X 18 3.00 X 18 Trapezoidal 35 / 35 W 55 KMPL
Engine Displacement Clutch Gear box Frame Battery Head lamp Suspension(front) Suspension(rear) Wheelbase Dimensions (LxWxH) Ground clearance Kerb weight Tyre (front) Tyre (rear) Max power Max torque Bore x Stroke Compression ratio 4-stroke, air-cooled, single cylinder OHC 97.2cc Multiplate wet 4 speed constant mesh Tubular double cradle 12V - 2.5 Ah 35W / 35W - Halogen bulb Telescopic hydraulic shock absorber Swing arm with hydraulic shock absorber 1230 mm 1980x720x1045 mm 150 mm 108 kgs 2.75 x 18-4 PR 2.75 x 18-6 PR 7.4 PS @ 8000 rpm 0.79 Kg-m @ 5000 rpm 50.0 x 49.5 mm 8.8: 1
If you look at the 223c mill of the Karizma, you can make out the familiar streak that runs through the engines on the CBZ and the Ambition. No prizes on this count as to the reason but the 223cc Karizma engine represents - for the moment - the maximum capacity this modular design theme can be taken to. The crankcase is of virtually the same size though the covers do have some detail differences and the engine mounts are the same as in the other two bikes and completing the picture are the scaled-up barrel (with an additional fin) and head. The single overhead cam motor features slightly undersquare cylinder dimensions with a 65.5mm bore and a 66.2mm stroke to give a 223cc swept volume. Hero Honda has designed in the latest convex-type combustion chamber (compression ratio being 9.0 : 1) for silent running and good power delivery while also giving it the latest Keihin VE 3EA constant vacuum type carburettor which also packs in the CCVI switch. The CCVI term stands for carb-controlled variable ignition timing which as it suggests actuates - via throttle position - one of two ignition maps, for low and high speed operation. This was one area which disappointed appreciably in the CBZ wherein the engine sounded and felt harsh as one went past the middle range but here this detail has eliminated such a glitch completely. Just for the record, the 223cc engine gets the latest version of Honda's AMI (advanced microprocessor ignition) system which incorporates a three tier, multi-stage digital ignition system. The all aluminium alloy engine (with pressed-in steel liner) features an automatic cam chain tensioner, an air cut off valve (to prevent afterburning in the exhaust muffler) and like on the CBZ and Ambition, an air injection valve to keep tail pipe emissions in check. With
all this and the extra cubic capacity, the Karizma engine develops 16.76bhp at 7000rpm and 18.35Nm of torque at 6000rpm. This is about 2bhp and 5Nm more than what the Pulsar 180 makes but the reasoning is that the engine had to be stressfree and this fact holds true when out on the roads.
Transmission is via a five-speed gearbox which has had its final drive ratios revised from those in the CBZ. A stronger multi-plate clutch is used to take care of the enhanced power and torque figures. This time round Hero Honda has not faulted and equipped the engine withan electric starter even though the kick starter to be actuated requires the front right footrest to be folded out of the way.
4.1 FACTS & FIGURES
Sale of Hero Honda in Rural area and Urban area
In the survey of rural as well as urban area it is found that in rural area the sale of Hero Honda is less but in urban area it gives very exiting result. This may be because of the conditions of roads there.
Area Urban Area Rural Area
% of Respondents 72 28
Urban Area Rural Area
PARTICULER AREAS OF RESPONDENTS
All the respondents were from different areas. The samples were taken from the mentioned areas for the survey. It was observed that the people of main town like to use Hero Honda as they like all features of it. And is according to there pocket
Areas Motijheel Maripur Chatta Chock Mithan Pura Other
% of respondents 42 12 26 14 6
26% 12% Motijheel Maripur Chatta Chock Mithanpura Other
FAMILY INCOME OF RESPONDENTS
The income distribution of the families of respondents shows that the bike, which was considered earlier to be out of range for middle class families is now becoming very fast an article for them. Family income (Rs.) 5000-10000 10000-15000 15000-20000 Above 20000 % of Responses 10 46 36 08
5000-10000 10000-15000 15000-20000 Above 20000
PERSONS WHO KNOW TODRIVE BIKE
Almost every person know how to drive a Bike (In my Survey) Response Driving known Driving not know % Of respondents 96 04
96% Driving known Driving not know
FACTOR PROMPT TO BUY HERO HONDA
It should be stated that the performance is the most important factor followed by look. The possible combination and corresponding number of respondents are shown in the table below. Features Performance Look Availability Price Maintenance Brand image After sale service % of respondents 18 11 5 1 4 5 6
Performance Price After sale service Look Maintenance Availability Brand image
HOW DID THE RESPONDENT CAME TO KNOW ABOUT THE BIKE?
The best media of advertisement (according to which the respondents came to know about the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of them came to know through hoardings. Medium of Advertisement Television Magazine Friends Hoardings Others % of Respondents 46 36 14 02 02
36% Television Magazine Friends Hordings Others
PURCHASE OF BIKE
Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of the respondents say that they have purchased their bike through bank loans.
Purchase Type Cash Purchase Hire Purchase
% of Respondents 94 06
94% Cash Purchase Hire Purchase
DECISION INFLUENCED BY
Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their friends and parents influenced them. Influencer Parents Self Friends Relatives Others % of Respondents 16 54 18 08 04
4% 8% 16% 18%
BIKES PREVIOUSLY USED
More than 60% were using Hero Honda CD100 bikes. They were followed by Yamaha RX100 & very little have chosen other bikes. Previously Used CD100 Yamaha RX100 Others % of Respondents 62 32 06
RATING OF BIKES
42% of the respondents have rated as the best bike they have used, but it is facing a stiff competition from Pulsar & Fierro. Bikes Spleandor Passion Ambition Pulsar Fierro Others % rating by Respondents 38 08 06 28 14 06
6% 14% 38%
4.2 SURVEY REPORT
The Initial Quality Study of Two Wheelers in India
Something to Ponder over. Which model of Motor Cycle would you recommend to your dear friend? Does the basic reliability of two-wheelers measure up to the promises made by the manufacturer…? Where exactly is the quality lacking…? Are buyers happy with the quality they get…? What is the trend over the years…? Would they buy the same model again or more importantly from the manufacturers point of view… would they advise their friends to buy it…? So let the people know just how the two-wheelers fared on the road… WORKS : It quantifies the initial quality of two wheelers in the form of the universally accepted metric – Problems per 100 vehicles (PP100V) Ranks all the popular models as per their quality performance Links the quality findings with the customer viewpoint
Each year manufacturers of two wheelers sells millions of vehicles in India with an implicit promise…… that their products will have zero defects. However, do their Products match up to their promises? And how can we find out how they perform on the road? PPM is an initial quality index for two wheelers. It is an index that represents the level of quality in manufacturing and delivery operations for a given model of two-wheeler. PPM counts the number of problems faced by the user of a given model of two-wheeler within the first three months of its usage. The addition of such problems for 100 carefully chosen vehicles indicates a number called ‘problems per 100 vehicles’ or PP100V. e.g. if a particular model has initial quality index of ‘216 problems per 100 vehicles’ it means on an average each vehicle will have 2.16 problems. The exercise started on 5th July, 2004. The fieldwork was completed on 5th August, 2004. Field investigators have spent more than 10,000 hours on the road, carefully tracking down new owners of 14 popular bikes, to find out what problems they have encountered in the first three months of usage. Responses were collected from about 100 people living in town for each of the 24 models totaling to more than 2400 responses from areas. Aided recall technique was used through a structured questionnaire based interview to collect the data from the field. Only full-time field investigators of METRIC were employed for data collection to maintain reliability of responses.
The Indian two wheeler industry today offers more than 70 models to a buyer. And manufacturers are launching new models every day…… More than 20 models were launched in the last year. Top this up with a variety of promises ranging from free gifts and financial schemes to the attractive looking models and jingles in the advertisement. In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a trying experience for the common man. In such a situation, the buyer has to first narrow down his search to a given category of two wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a rich father may only look at premium bikes. What next……? Which bike should I buy? A bike with more power…… better looks…… more reliability…… errrr! Lesser problems per vehicle for a given model could be a good enough reason to go for the model…..? Yes! But, within my selected category of premium bikes… So which premium bike has lesser problems? Do new launches have more problems than older ones? Naa…! Does PPM score depend on who manufactured the vehicle…? See for yourself!
Manufacturer-wise PP100V scores in Survey
Sr.No. 1 2 3 4 5 6 7
Vehicle Honda LML Kinetic TVS Bajaj Yamaha
PP100V 146 165 183 196 196 223
Hero Honda 176
Executive bikes scored less problems than economy bikes…however simpler machines like scooters have the fewest problems This year we classified motorcycles by the market as premium, executive and economy…... Amongst the bikes, we found the number of problems were lowest in executive bikes and highest in economy bikes….
Executive bikes (179 PP100V), then premium bikes (209 PP100V) and last were economy bike (230 PP100V).
46% of the problems reported by customers were problems like high fuel consumption, starting trouble, erratic / rough gear shifting, noisy / loose drive chain etc. All these problems are related to the engine & transmission. Another 12% of the problems were attributed to miscellaneous aspects like battery discharged, stand hard to operate, etc. Perhaps this is the most complex part of the two wheelers and hence poses maximum challenge to the quality control guys in the manufacturing units.
Splendour the largest selling executive bike from Hero Honda has reported the lowest number of problems with ENGINE (37 PP100V) closely followed by the newly launched geared scooter Eterno (38 PP100V) from Honda. Simplicity is the beauty
TRANSMISSION WOES :
Gearless scooters/scooterettes have lowest number of TRANSMISSION problems., complains Who fulfilled the promised performance and how much…? Sl No. 1 2 3 4 5 6 7 Manufacturer Honda LML Hero Honda Bajaj Auto TVS Yamaha Kinetic % models above category average 100 100 67 43 33 33 25
SCOPE AND COVERAGE :
Manufacturers and their Models: Sr.No. 1 2 3 4 *Hero Honda f 5 6 7 *Kinetic Engineering 8 *LML 9 *TVS 10 11 *Yamaha 12 13 14 Crux / Crux R Enticer Libero Max 100 R / DLX / DC Victor Freedom Boss Ambition CD-100 / SS / Dawn / CD Dawn Splendor / Passion Manufacturer * Bajaj Boxer Caliber 115 Pulsar 150 / 180 Spirit List of models studied
Aggregates and features covered:
§ § § § § § § § § § § § Overall Satisfaction Overall quality Instrument Panel / Dash Board Locks Control knobs / Switches Handle Lights Body Transmission Engine Wheels Riding
It is clear from the report that the Hero Honda Motors is facing cutthroat competition; hence the company’s manager has to be fast and smart so as to understand the customers needs. They have to come up with various new techniques or schemes to be able to cater to different categories of people.
Customers are becoming more wise day by day and they are now willing to know all the in and out of the things happening around them. This has led to increased customer awareness.
We can analyze that if the brand is reputed that doesn’t win the customers delight unless it’s provided same value-added features or else we can say competitive advantage.
For gaining a competitive advantage it has to continuously compare the product and services with the competitors and find the weak area of the rivals for gaining competitive advantage.
Surveys revealed that awareness of Hero Honda Motors is low among its target segment for creativity awareness. The company has to take some keen step for promotional activity.
The company should regularly send the sales person who have good communication skill to the customers so that they should be aware about the product and services in market and know the quality of the services offered by the company.
While Hero Honda has strong foothold in the industry, the company should look into the areas of weakness. In this connection, It is suggested that the company can look into the following areas:
In order to expand its business it should introduce innovative schemes for young generations, better financial schemes, etc.
The company should expand its service centers. The must move towards the rural areas to expand its sale.
Questionnaire for the survey of Motorbikes .
1. Name __________________________________________________ 2. Address 3. Phone No. Mobile No. 4. Age _____________________________________________ _____________________________________________ ___________________ ___________________ 18 – 22 years [ ] 28 – 32 years [ ] 23 – 27 years [ ] above 32 years[ ]
5. Do you have any bike in your house? Yes [ ] No [ ]
6. If yes, Name and Company of the bike. ________________________________________________________. 7. If No, Do you have any plan to buy it in next 6 months? Yes [ ] No [ ]
8. If Yes, Name and Company of the Bike. ________________________________________________________. 9. Which Bike does you like most? ________________________________________________________. 10.Rank the Motorbike manufacturing company. 1. 2. 3. 4. Hero Honda Yamaha Bajaj L.M.L. [ [ [ [ ] ] ] ]
11. Do you remember any advertisement of Hero Honda? ________________________________________________________.
12. What should the price range in your opinion? Splendor + ___________________ Sufficient [ ] Sufficient Sufficient [ ] [ ] [ ] [ ]
CD dawn ___________________ Passion + ___________________ ___________________ Sufficient ___________________ Sufficient
13. Any new facilities or any improvement that you want. ________________________________________________________ ____________________________________________________________________ ____________________________________________. 14.Give remark to your old Bike Company. Good Excellent [ ] [ ] Don’t have a Bike Very Good Out standing [ ] [ ] [ ]
15 Give remark to Hero Honda. Good Excellent [ ] [ ] Don’t have a Bike Very Good Out standing [ ] [ ] [ ]
Surveyed by: ……………………… Checked by: ………………………
BOOKS: Name of the book Author Name of the book Author :- Marketing research :- Dr. C.B.Mamoria :- Marketing research :- Mr. Kothari.
MAGAZINES, JOURNALS AND NEWSPAPERS: Journals published by Hero Honda, Annual Report Auto India, Business World
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.