Introduction The project is aimed at understanding the customer perception towards the vehicles of Hero Honda ltd.

The two- wheeler industry in India has grown to a great extent in the last two and a half decades and it still has a vast growth potential and a huge untapped market. Apart from this there is also a huge market for the servicing of the vehicles. This is where the project aims to study the customers mind and try to give out suggestions to improve the current scenario pertaining to the various models, segments and classes of vehicles from the house of Hero Honda. Hero Honda is the market leader in the India two-wheeler industry and has a substantive product line and a good serviceability. The study is aimed at knowing the brand positioning, the strengths and weaknesses and the quality of service from the Hero Honda service centres in Hyderabad. For this a survey was conducted and the opinion of customers visiting these service centers was taken in to consideration for the sake of this study. The questionnaire consists of questions related to the qualitative and technical aspects. The inferences are drawn out of the information received and suggestion are made. Important and relevant data has also been analysed from the internal sources like the company reports and other secondary sources like Newspapers, magazines and the Internet.

OBJECTIVIES OF STUDY The study has been under taken to analyze the product performance of only hero Honda motor cycles in twin cities with a special reference to the Hero Honda motors, the other objectives are: To know the strengths and weakness of the Hero Honda motor cycles. To know the Perception towards Brand about the sales service offer to buy Hero Honda motors. Brand names play an important role for launching of new product. To offer suggestions, in improving the product performance and the company sales and profitability and image to increase the brand level.

SCOPE OF THE STUDY

The study concentrates on the all aspects of customer perception towards Hero Honda vehicle

.No destination was made with regards to the segments for which a vehicle belongs.

The research study is made in10 Hero Honda service centers

NEED OF THE STUDY.

Companies need to monitor and improve the level of performance. The higher the performance, the better the retention rate is.

Thus the concept of performance analysis has gained a lot of importance to the organization to gain the competitive advantage.

If the organization provides a degree of performance that is above the desired level, it results in customer delightedness and it ensures that the person will return again and again.

RESEARCH METHODOLOGY

Two broad research methodologies can be used to answer any research question. They are- Experimental research and Non experimental research. In experimental research, there is control over the extraneous variables and manipulation of at least one variable by the investigator. In Non experimental research, there is no intervention beyond that needed for the purposes of measurement.

The study uses Non experimental research method.

RESEARCH DESIGN:

A research design is a statement or specification of the methods and procedures used for acquiring the information needed for the solution of some specific problems. It provides a scientific frame work for conducting a research. Although research designs may be classified by many criteria, the most useful one concerns the major purpose of the investigation. On this basis, research design can be classified into three classes- Exploratory, Descriptive and Causal. If no formal design or structural questionnaires are used, exploratory design is used. If a person is conversant with the problem environment, or is conducting the research for some specific purpose using structural questionnaire to gather information, the research design is descriptive. Causal research design is used to establish cause and affect relationships. DATA COLLECTION METHODS The following steps are involved in the data collection process: 1. Finding out the type of information required in the investigation process. 2. Establishing the facts that are available at present and the additional facts required. 3. Identification of the sources from where the information can be available. 4. Selection of appropriate information collection method.

The data required from this study is collected from primary and secondary sources. The data collected are both quantitative and qualitative.

PRIMARY SOURCES

The primary source used for gathering data required for this survey is Survey method. In the survey method a Survey of the consumers behavior towards two-wheeler is done. A planned effort is made using structured questionnaires to interview the respondents. The respondents are the owners of two-wheelers, who are interviewed, are chosen using non probability sampling method. The surveys can be done through personal interviews. In this study the respondents are interviewed personally so that the errors involved in gathering the primary data are minimized. SECONDARY SOURCES The secondary sources used for collecting the data are: 1. Internal Sources Company reports. Company publications.

2. External Sources Business dailies like- The Economic Times, The Business Line etc. News papers like The Times of India, The Indian Express and The Hindu etc. Information was also gathered from magazines like- Business Today, Business World, A&M etc. Other than these sources information was also gathered from internet.

SAMPLE SIZE

The sample consists of 100 customers selected from the twin cities of Hyderabad and Secunderabad using convenience sampling method. Out of the customers selected fro the study, some did not own two-wheelers and some had not responded well. Hence they had to be replaced by other customers.

LIMITATIONS Taking the market conditions into consideration the survey, which includes a sample of 100, was a respective one. Due to the limitation of span of time and limited resource survey was conducted for a period of 4 weeks. The geographic region covered for the survey was limited to only 10 Hero Honda service centers. Since the survey was conducted at the residential localities and the person who owns a Hero Honda Vehicle. Improper response from customers and buyers, but it was minimal. Scientific methods of post testing could not be conducted. Minimal possible bias in administrating the questions at the survey conducted areas. The reaction and attitudes are subjected to changes according to needs and time

INDIAN TWO WHEELER INDUSTRY

India is the second largest producer and manufacturer of two-wheelers in the world. Indian two-wheeler industry has got spectacular growth in the last few years. Indian twowheeler industry had a small beginning in the early 50's. The Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being scooters and mopeds. Indian companies are among the largest two-wheeler manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian companies that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid 1980s. The openness of Indian market to foreign companies leads to the arrival of new models of two-wheelers into India. Easy availability of loans from the banks, relatively low rate of interest and the discount of prices offered by the dealers and manufacturers lead to the increasing demand for two-wheeler vehicles in India. This lead to the strong growth of Indian automobile industry. Kinetic Honda was introduced in the Indian market during the mid 80s. The main feature of Kinetic Honda is its ease of use. This helped the youngsters and the women to buy scooters

Key players in the Two-wheeler Industry:

After facing its worst recession during the early 1990s, the two-wheeler industry bounced back with a 25% increase in volume sales in February 1995. The scooters are considered as family vehicles. There are many two-wheeler manufacturers in India. Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) .

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.

Motorcycles in India: Bikes comprise a major segment of Indian two wheeler industry.

Company: HERO HONDA * Hero Honda Achiever * Hero Honda CD Dawn * Hero Honda CD Deluxe * Hero Honda Glamour * Hero Honda Glamour-Fi * Hero Honda Karizma * Hero Honda Passion Plus * Hero Honda Pleasure * Hero Honda Super Splendor * Hero Honda Splendor NXG * Hero Honda CBZ X-Treme

Company: Bajaj Auto Ltd * Bajaj Avenger * Bajaj CT 100 * Bajaj Platina * Bajaj Discover DTSi * Bajaj Pulsar DTSi * Bajaj Wave * Bajaj Wind 125 * Sonic DTSi

Company: Kinetic Motor Company * Kinetic Aquila * Kinetic Boss * Kinetic Challenger * Kinetic Comet * Kinetic GF * Kinetic Stryker * Kinetic Velocity

Company: TVS MOTOR * TVS Apache * TVS Centra * TVS Fiero * TVS Star * TVS Victor

Company: Yamaha Motor India * Yamaha Cruxes * Yamaha G5 * Yamaha Gladiator

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Scooters in India:

The scooter and the scooterette share in the Indian two wheeler market is 13.4%. The main models available in India are Bajaj Chetek, Honda Eterno, Kinetic Blaze, LML NV SPL and LML Select II.

Scooterettes/Mopeds:

TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS also launched India's first indigenous scooterette: Scooty in 1994. This segment has about one-fourth share in the Indian two wheeler industry. The major models available in India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure, Kinetic Kline, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda Activa, TVS Scooty and TVS XL.

Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The twowheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-04. This high figure itself is suggestive of the importance of the sector. In the initial years, entry of firms, capacity expansion, choice of products

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including capacity mix and technology, all critical areas of functioning of an industry, were effectively controlled by the State machinery. The lapses in the system had invited fresh policy options that came into being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign investment respectively. This controlling mechanism over the industry resulted in: (a) several firms operating below minimum scale of efficiency; (b) under-utilisation of capacity; and (c) usage of outdated technology. Recognition of the damaging effects of licensing and fettering policies led to initiation of reforms, which ultimately took a more prominent shape with the introduction of the New Economic Policy (NEP) in 1985.

However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalised and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-wheeler industry in the country has been able to witness a proliferation of brands with introduction of new technology as well as increase in number of players. However, with various policy measures undertaken in order to increase the competition, though the degree of concentration has been lessened over time, deregulation of the industry has not really resulted in higher level of competition.

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A Growth Perspective

The composition of the two-wheeler industry has witnessed sea changes in the postreform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining importance during this period is exhibited by the Figures 1, 2 and 3 depicting total sales, share and annual growth during the period 1993-94 through 2003-04.

TWO WHEELERS PRODUCTION TREND

Category Scooters Motorcycles Mopeds Grand Total

2001-02 937506 2906323 427498 4271327

2002-03 848434 3876175 351612 5076221

2003-04 935279 4355168 332294 5622741

2004-05 987498 5193894 348437 6529829

2005-06 1020013 6201214 379574 7600801

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TWO WHEELERS DOMESTIC SALES TREND Category Scooters Motorcycles Mopeds Grand Total 2001-02 908268 2887194 408263 4203725 2002-03 825648 3647493 338985 4812126 2003-04 886295 4170445 307509 5364249 2004-05 922428 4964753 322584 6209765 2005-06 908159 5815417 332741 7056317

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HERO HONDA COMPANY PROFILE

Hero is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland , Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle - Splendor. This festive season, the company sold half a million two wheelers in a single month-a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art

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manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockists and authorized representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India , increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India 's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.

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History Hero Honda is worlds biggest two wheeler maker. India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was the second largest two wheeler manufacturer in the world starting in the 1950s with the birth of Automobile Products of India (API) that manufactured scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa scooters). The license raj that existed between the 1940s to 1980s in India did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a sellers market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. The motorcycle segment had the same long wait times with three manufacturers: Royal Enfield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only fourstroke engine at that time and took the higher end of the market but there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The twowheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda). The entry of these

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foreign companies changed the Indian market dynamics from the supply side to the demand side. With a larger selection of twowheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.

Growth

Hero Honda experienced great growth throughout its early days. The Munjal family started a modest business of bicycle components. By 2002 Hero Group had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of nine different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. 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. HUNK is the latest offering from the HHML stable

Just-in-Time Manufacturing

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The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time manufacturing. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines 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 inventory levels.

In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit. This is the Japanese style of production. In India, Hero is probably the only company to have mastered the art of the just-in-time inventory principle. 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.

Labor relations In Hero Group 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." Hero workers receive a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits include medical check-ups not just for workers, but also for the immediate family members. For the majority of the production workers, who are hired

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through contractors, these benefits are out of reach. This and other problems lead to a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.

Diversification Throughout the years of enormous growth , the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of vertical integration in its manufacturing activities has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other componentmanufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication. The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by a culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customers. BOARD OF DIRECTORS

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

Name of the Directors Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Yutaka Kudo Mr. Om Prakash Munjal Mr. Sunil Kant Munjal Mr. Masahiro Takedagawa Mr. Takashi Nagai Mr. Narinder Nath Vohra Mr. Pradeep Dinodia Gen.(Retd.) Ved Prakash Malik Mr. Analjit Singh Dr. Pritam Singh Ms. Shobhana Bhartia Mr. Sunil Bharti Mittal

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

HERO HONDA'S MISSION:

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Hero Hondas mission is to strive for synergy between technology, systems, and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

KEY MILESTONES OF HERO HONDA

Year

Event

1983

Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed Shareholders Agreement signed

1984 1985 1987 1989 1991

Hero Honda Motors Ltd. incorporated First motorcycle "CD 100" rolled out 100,000th motorcycle produced New motorcycle model - "Sleek" introduced New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced

1992

Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal

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1994

New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced

1997

New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 1999

2,000,000th motorcycle produced New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal

2000

4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single two-wheeler model "Hero Honda Passport Programmed" - CRM Programmed launched

2001

New motorcycle model - "Passion" introduced One million productions in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced

2002

New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced

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Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor - World's largest selling motorcycle crossed the 5 million mark New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row

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PROMINENT AWARDS TO THE COMPANY Year Awards & Recognitions 2008 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: 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" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine

"Bike of the Year" - CBZ X-treme by Overdrive Magazine

Ranked CBZ X-treme " Bike of the Year" - by B S Motoring Magazine

Most Trusted Company , by TNS Voice of the Customer Awards 2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two

Wheeler Company)

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One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility Award Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006: Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006

Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company)

Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council

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The NDTV Profit Car India & Bike India Awards 2006 in the following category: 2005 Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category) NDTV Viewers' Choice Award to Glamour in the bike category

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 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

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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 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 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)

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1991

Economic Times-Harvard Business School Award for Corporate Performance to

Hero Honda Motors Ltd.

BRIEF PROFILE OF HEROHONDA Company name Type Founded Headquarters Key people :Hero Honda Motors Ltd. :Public company BSE:HEROHONDA M :January 19, 1984 in Gurgaon, Haryana, India :New Delhi, India :Brijmohan Lal Munjal, Founder

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:Mr. Brijmohan Lal Munjal, Chairman :Mr. Toshiaki Nakagawa, Joint Managing Director

:Mr. Pawan Munjal, Managing Director, CEO Industry Products Revenue Website :Automotive :Motorcycles, Scooters :U$ 2.8 billion ^ :www.Herohonda.com

Profile of Phoenix Motors

Phoenix Motors PVT.LTD, is dealership type of business. PHOENIX MOTORS PVT.LTD, is established on 21st March 2003. The business is running by only one man. The owner name is CH.Madhumati. The firm is located at Habsiguda in Hyderabad.

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Generally the sale will be either in cash basis or institutional basis like ICICI, HDFC and CENTURIAN are providing loans to customers.

Advertisement strategy of Phoenix Motors:

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

Categorization of staff members:

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

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Customer relationship To entertain the customers the showroom provides ahuge having pool game, internet facility and television with home theater system. They provide bike maintenance programs on every week. Phoenix motors is first in service and the best in service. They treat customer is the very important person at phoenix motors. Customers satisfaction is their motto, why because the well satisfied customer is the best advertisement. They provide better value for tee customers as well as employees also. At phoenix motors the customer is the boss Sales strategy of phoenix motors

Averagely they are selling 25 vehicles per day. V PVT> LTD is the A.Ps No 1 dealership in sale and other activities. It is a QLAD (Quality leader through quality dealer) At phoenix motors they give the quality service to the customers because the cost is long forgotten but the quality is remembered forever.

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PRODUCT PERFORMANCE

Product Performance Analytics provides powerful analytic capabilities and presents a single, unified view of information through a web-based business dashboard. Product Performance Analytics enables brand, category, and product managers to: Optimize Product Ranges: Your products do not exist in isolation and Product Performance Analytics provides new insight into performance across lines, categories, and brands. With Product Performance Analytics, you can track market share and sales history to identify which products you should continue to invest in and allocate space to. You can navigate product hierarchies to perform analysis at any level and analyze product mixes to identify gaps that need to be filled and products that should be delisted. Improve Brand Performance: Are your brand sales on track to meet your revenue or volume objectives? With Product Performance Analytics, you can discover what brands are growing faster than others, classify brands by volume growth, and track brand performance against targets. Product Performance Analytics allows brand managers to benchmark brand performance and highlight exceptional performance. Maximize Product Profitability: Which products are the most profitable? Product Performance Analytics provides the insight to understand which product is the most profitable while recognizing that that products and categories will perform differently through different channels. Improve profitability by identifying top performing channels, which products sell well in each channel, and what other products may also sell well in the channel.

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What does a performance analyst do? Here's a list of some of the things as a part of a performance analysis: Interviewing a sponsor Reading the annual report Chatting at lunch with a group of customer service representatives Reading the organization's policy on customer service, focusing particularly on the recognition and incentive aspects listening to audiotapes associates with customer service complaints leading a focus group with supervisors Interviewing some randomly drawn representatives Reviewing the call log Reading an article in a professional journal on the subject of customer service performance improvement Chatting at the supermarket with somebody who is a customer, who wants to tell you about her experience with customer service

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ANALYSIS AND INTERPRETATION

1 .What is your vehicle model? Vehicle Model Passion plus Splender plus CBZ X-Treme Hunk Glamour Karezma CD-100 Ambition Splender NXG CD-Deluxe Pleasure No, of vehicles 48 16 11 8 5 4 3 2 1 1 1 Percentage 48 16 11 8 5 4 3 2 1 1 1

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1% 1% 1% 2% 3% 4% 5% 8% 48% Pasion plus Splender plus CBZ X-Treme Hunk Glamour Karezma 11% 16% CD-100 Ambition Splender NXG CD-Deluxe Pleasure

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1% 1% 1% 2% 3% 4% 5% 8% 48% Pasion plus Splender plus CBZ X-Treme Hunk Glamour Karezma 11% 16% CD-100 Ambition Splender NXG CD-Deluxe Pleasure

Interpretation:

From the study its clear that majority of respondents are having Passion Plus bikes.

The major reason behind choosing passion plus rather than other Hero Honda brands is its mileage.

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2. (A). What is your first bike?

Vehicle Model Splender plus Passion plus CD-100 Pulsar Kinetic Honda Bajaj Chetek TVS Suzuki TVS Sambran LML Boxer YEZDI CBZ X-Treme

No, Of Vehicles 9 4 3 3 2 2 2 1 1 1 1 1

Percentage 31 13 10 10 7 7 7 3 3 3 3 3

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3% 3% 3% 3% 3% 7% 7% 7%

Splender plus Passion plus 31% CD-100 Pulsar Kanatic Honda Bajaj Chethek TVS Sujiki TVS Sambran LML 13% Boxer Yezdi CBZ X-Treme

10%

10%

Interpretation:

Around 70% Of The Bike Users Prefer Hero Honda Bike As Their First Time. The remaining of the respondents shifted from other brands bikes to Hero Honda bikes.

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The reasons mileage, brand image, design of bikes.

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2. (B) if you are changed from other brand by what reason you changed it?

Reasons Mileage Design Brand Others(more power)

No: of vehicles 14 12 3 1

Percentage 46 40 10 4

16 14 12 10 8 6 4 2 0

14 12

Series1

3 1 Mileage Design Brand Others(more power)

Interpretation:

From the above study its clear that the majority of respondents shifted other brand to hero Honda brands.

The respondents shifted from brands to hero Honda brand the main reasons are mileage & design.

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3. How long are you using this bike?

Duration <1 year 1-2 years 2-3 years >3years

No of respondents 53 17 13 17

Percentage 53 17 13 17

60 50 40 30 20 10 0 Series1

53

17

13

17

<1year 53

1-2 years 17

2-3 years 13

>3years 17

Interpretation:

The most of the respondents are using their bikes from the last one year.

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No; Of Reasons Brand Mileage Design Price Others( ) this bike? Respondents 46 26 21 7 0 Percentage 46 26 21 7 0 4. What are the reasons for choosing

No; Of Respondents Others ( ), 0 Price, 7 Design, 21 Mileage, 26 Brand, 46

Brand Mileage Design Price Others ( )

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Interpretation:

The majority of respondents are choosing the Hero Honda bikes because of its brand image.

The remaining respondents choosing the Hero Honda bikes because its mileage, design & price

5. How much mileage are you getting from your bike?

Mileage (in km) 21-30 31-40 41-50 51-60 61-70 71-80 81-90

No Of Respondents 3 11 26 38 19 2 1

Percentage 3 11 26 38 19 2 1

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40 35 30 25 20 15 10 5 0 21-30 31-40 41-50 3 11 26

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19

Series1

1 81-90

51-60

61-70

71-80

Interpretation:

The most of the respondents are getting (51-60) km mileage from their bikes. The second majority of respondents are getting (41-50) km.

6.

(A) Are you satisfied with your bike mileage?

Mileage (in Km) Yes No

No of responds 79 21

Percentage 79 21

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90 80 70 60 50 40 30 20 10 0

79

Series1 21

Yes

No

Interpretation:

The majority of respondents are satisfied with the mileage of bikes. The remaining respondents are not satisfied with mileage.

6. (B) If No: How much mileage you are expecting?

Mileage (in Km) 31-40 41-50 51-60 60-70

No of responds 1 3 6 11

Percentage 5 14 29 52

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5% 14% 31-40 41-50 52% 29% 51-60 61-70

Interpretation: The majority of respondents are expecting the mileage of bikes around (61-70) km. The followed by majority of respondents are expecting (52-60) km mileage of the bikes. 7. Are you impressed by the bike design?

Response Yes No

No of respondents 98 2

Percentage 98 2

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98 100 90 80 70 60 50 40 30 20 10 0 Yes No 2 Series1

If no reasons 1. Head light problem 2. Comfort of bike

Interpretation:

All most total member of respondents is impressed by bike design.

The negligible respondents are not impressed by bike design.

8. Are you satisfied with comfort of bike?

Response Yes No

No of responds 97 3

Percentage 97 3

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3%

Yes No

97%

If no reasons 1. less capacity 2. seating problem 3. seat is not good

Interpretation:

The most of the respondents are satisfied with their comfort ability of bike.

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9. How would you rate your bike pick up?

Response NO, Of respondents Very good Good Average Bad Very bad 9 56 27 6 2

percentage 9 56 27 6 2

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NO, of respondents 60 50 40 30 20 10 0 56 27 9 Very Good Average 6 2 Very Bad NO, Of Respondents

Interpretation:

Majority of respondents are rated their bike pick-up has well.

10. At which service center your bike is being serviced?

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Service centers Authorized Unauthorized

No of respondents 97 3

Percentage 97 3

3%

Authorized Unauthorized

97%

Interpretation:

Most of the respondents are prefer to get their bike service at authorized centers.

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11. How is the after sales service?

Reasons Response Yes No Very good Good Average Bad Very bad

No, Of No Of Respondents Respondents 8 94 58 6 22 10 2

Percentage Percentage 8 94 58 6 22 10 2

No, Of Respondents

10

8 Very good Good Average Bad Very bad

22

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Interpretation:

Majority of respondents are rated the after sales service of Hero Honda as good.

12. Are you satisfied with availability of spare parts?

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100 90 80 70 60 50 40 30 20 10 0 Yes 6 No 94 Series1

Interpretation:

Most of the respondents are satisfied with the availability of spare parts. That parts are Provided by Hero Honda.

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1. Finally how you rate your bike?

No, Of Response Very good Good Average Bad Very bad Respondents 55 34 6 3 2 Percentage 55 34 6 3 2

No, Of Respondents Very bad Bad Av erage Good Very good 0 20 40 2 3 6 34 55 60 No, Of Respondents

Interpretation:

Majority of respondents are rated the whole service of Hero Honda as very good.

Remaining respondents are rated the service good& average

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14. Will you recommend hero Honda to your friends?

Response Yes No

No Of Respondents 95 5

Percentage 95 5

100 90 80 70 60 50 40 30 20 10 0

95

Series1

5 Yes No

Interpretation:

From the above data its clear that most of the respondents recommended the Hero Honda bikes to his friends.

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15. Any comments/suggestions to Hero Honda-----------------

Required more pick-up & mileage To improve the quality of the service Comfortable designing Lack of guidance 7 attention on customers Availability of spare parts Seating problem Improvement in head light facility Reliability

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CONCLUSIONS:

Brand name play vital role in the customer perception. Most of the respondents choose Hero Honda bikes, because its mileage & design.

Most of the respondents are satisfied with the whole performance of the Hero Honda vehicles.

95% of the respondents will recommend the Hero Honda bikes to their friends.

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SUGGESTIONS & RECOMMENDATIONS

After analyzing the findings, the following suggestions have been prepared. Great care has been taken in making this suggestion for the improvement of customer satisfaction

There is a heavy demand for Hero Honda motor cycles in the market, so there

supply has drastically improved so as to meet the demand of the customers The prices of some of the Hero Honda motor cycles are high which are

considered to be not suitable for the Indian economy that is not affordable by the middle class people. The company should keep updating the models of bikes and keep adding the new

features to the bikes in order to face the competition from the competitors and company should concentrate on pickup. The after sale services has to be improved and make availability of servicing

centers even in rural areas so as to face the competition existing in the motor cycle segments. Though the majority of the customers are satisfied with the timings of the

workshop, it is suggested to have 24*7 services The satisfaction level is in the area of GOOD only it may further improve to the

level of very good and excellent Some of people are not satisfied about bike mileage. They are expecting around

(60-70) km So improve the mileage of the bikes. Few respondents are not satisfied with the seat facility. Improve seat problem of

those models.

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Some people are not satisfied the availability of spare parts, & rate of spare parts

at the authorized service centers. Give the discount on all spare parts at authorized service centers. Most of the youth respondents are expecting stylish models with better mileage.

FINDINGS

Majority of respondents choose their Hero Honda bikes because of its brand image in the market & mileage.

From the study its clear that majority of respondents are having Passion Plus bikes

The major reason behind choosing passion plus rather than other Hero Honda brands is its mileage or any other thing.

Around 70% Of The Bike Users Prefer Hero Honda Bike As Their First Time. Because they are trust Hero Honda bikes.

Most of the respondents shifted from other brands bike s to Hero Honda bikes because of its brand image.

The most of the respondents are getting (51-60) km mileage from their bikes Around 79% of respondents are satisfied with the mileage of bikes. Almost the total no; of the respondents are satisfied their design of the bikes. So best design bikes provided by Hero Honda Company, according to customer perception.

Majority of Hero Honda bike customers satisfied their seat comfort ness. Most of respondents satisfied their pick up of the bikes, because Hero Honda provides best pick up bikes. 61

Most of the prefer authorized service centers, because their quality of service.

Majority of respondents satisfied the availability of spare parts at authorized service centers, because authorized service centers provide guaranteed spare parts.

Majority of respondents are rated the whole service of Hero Honda good.

as very

In all Hero Honda bikes CBZ X Treme was best looking bike, because of its design & pick up.

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NAME: M. RAMAKRISHNA RAJU COLLEGE: BADRUKA COLLEGE OF PG CENTRE.

Project Title: Customer Perception towards Performance of Hero Honda Motor Cycle

Personnel Profile: Name: _____________________ Designation: ____________________Ph:___________

1. What is your vehicle model?

_________________

2. (a)what is your first bike________________ (b) If you are changed from other brand by what reason you changed it________________ 3. How long are you using this bike? <1 year [ ] 1-2 year [ ] 2-3 year [ ] >3year [ ] 4. What are the reasons for choosing this bike? Brand [ ] Mileage [ ] Design [ ] Price [ ] Others [ ] 5. How much mileage you are getting from your bike? 6. Are you satisfied with your bike mileage? Yes [ ] No [ ] If No: How much mileage you are expecting?

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7. Are you impressed by the bike design? If No: Reason: 8. Are you satisfied with comfort of bike? If No: Reason: 9. How would you rate your bike pick up?

Yes [ ] No [ ]

Yes [ ] No [ ]

Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ] 10. At which service center your bike being serviced? Authorized [ ] Unauthorized [ ] 11. How is the after sales service? Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ] 12. Are you satisfied with availability of spare parts? Yes [ ] No [ ] 13 .finally how you rate your bike? Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ] 14. Will you recommend hero Honda to your friends yes [ ] no [ ]

15. Any comments/suggestions to Hero Honda______________________

(Signature of the candidate) THANK YOU

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BIBLIOGRAPHY

1. MARKETING MANAGEMENT 2. MARKETING RESEARCH

: :

PHILIP KOTLER G.C. BERRI D.D.SHARMA

3. CONSUMER BEHAVIOUR

LOUDON & DELLA BITTA SCHIFFMAN&KANUK

4. WEB SITE 5. SEARCH ENGINE :

www.HeroHonda.com

www.Google.com

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