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PREFACE

During the 80s, Hero Moto Corp (previously Hero Honda) became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Moto Corp (previously Hero Honda) sold millions of bikes purely on the commitment of increased mileage. In today world customer is the king irrespective of whatever the business may be ,wherever the operations may be .A good business organization is known by its strong customer loyalty, which turns to become a unified family. The project assigned to me by the company was a market study on 100cc bikes among the dealers and customers with special reference to Hero Moto Corp (previously Hero Honda) dealer and loyalty of customers towards the bike. The objective of the study was to find out the dealers and customers opinion about the 100cc bikes with special reference to Hero Moto Corp (previously Hero Honda) dealer to understand how market fluctuations affect their strategic decision. The research methodology was descriptive in nature encompassing a sample of 200customers for in-depth analysis It was observed that 80%of the respondents are interested to purchase Hero Moto Corp (previously Hero Honda) motor vehicle .are in the age group of 18-35. A large part of respondents with majority of 60% are satisfied with the availability of spare part and remaining 40% says no. It was observed that the 92% resplendence are either highly satisfied are just satisfied and remaining 8% are dissatisfied. Different models Hero Moto Corp (previously Hero Honda) vehicles can be introduced for ladies, with better comfort, speed and power, so that it can cater to the changing tastes of women. 1|Page

More service station should be established in every part of the city, so those customers have an easy accessibility. With a strong sales and service network of 650 Authorized dealership, 1500 authorized service centers and over 1000 certified service points, Hero Moto Corp (previously Hero Honda) is growing from strength to strength. Hero Moto Corp (previously Hero Honda) motor should also start producing other models and should add a different style and variety to their product line. This will surely attract more customers. This will help to increase the existing goodwill and position in the market. The experience gained during the analysis and drawing inferences was an exciting and informative exercise under the guidance of unit head.

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INTRODUCTION TO TOPIC

HISTORYABOUT THE CHAIRMAN Brijmohan Lall Munjal Seeding a Dream


"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.1 Two Wheeler Company. Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved, he added a second crucial chapter which visualized affordable and technologically superior transport to millions of middle class Indians. The rest is history. Building Relationships When Brijmohan and his brothers started out, there was no concept of organized dealer networks. Companies just produced, and most dealers functioned like traders. Brijmohan changed the rules of the business by trusting his gut instincts; introducing business norms that were ahead of their time, and by investing in strategic relationships. Brijmohan built a series of bonds and networks with hundreds of family members, vendors, dealers and employees. Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero Group together. "Thanks to the relationships that we have nurtured so passionately in the Hero Family, the younger generations of some of our bicycle dealers have become dealers of Hero Moto Corp (previously Hero Honda). These relationships have survived through generations through bad times and good times'' the patriarch now reminiscences. Besides bonding with his 3|Page

vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former employees are successful entrepreneurs. Staying Ahead Though not technically qualified in the conventional sense, few of his contemporaries have understood the dynamics of technology better than Brijmohan Lall has. He could always visualize the applicability of technology before others could. For example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stoke engine - a technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology was one of the biggest reasons for Hero Moto Corp (previously Hero Honda)'s stupendous success. Time and again, Brijmohan managed to steal a march over his industry peers. For example, when Honda Motors of Japan was looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order initially as there were other more eligible and established suitors. Yet it didn't take long for the astute Japanese to realize that the Hero Group and Honda had much more in common than earlier perceived; there a sharp focus on financial and raw material management, and employee turnover was low. Honda officials were also amazed to find that the Munjals were already practicing "Just-in-time-inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and costeffective operations. This in turn increased vendor efficiency and led to near-zero inventories. A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul system - which stresses the sanctity of the teacher-pupil relationship - imbibed in Brijmohan a strong sense of social commitment and responsibility. There is a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but Brijmohan has played no mean role in its evolution. Several schools and educational institutions in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the Ludhiana Flying Club. He's also set up the notforprofit Dayanand Medical College and Hospital-an institute now rated as one of the best medical colleges in India, in terms of infrastructure, quality of staff and alumni profile. In and around Dharuhera, near the first Hero Moto Corp (previously Hero Honda) plant, Brijmohan and 4|Page

his family have left their stamp of philanthropy. The Raman Kant Munjal Foundation - which Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a very modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted numerous villages and provides education, vocational training, drinking water, roads, streetlights and sewerage.

The Board of Directors of The Hero Moto Corp (previously Hero Honda) Group Comprises of : -

Mr. Brijmohan Lall Munjal Mr. Pawan Munjal

Chairman Managing Director

Mr. Akio Kazausa Mr. Kazumi Yanagida Mr. Satyanand Munjal Mr. Om Prakash Munjal Mr. M P Wadhawan

Joint Managing Director Director Director Director Director

Mr. S P Virmani Mr. O P Gupta Mr. M. Sudo Mr. S Toshida

Director Director Director Director

Mr. N N Vohara Mr. Pradeep Dinodia Gen. ( Retd.) V P Malik

Director Director Director

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HERO MOTO CORP (PREVIOUSLY HERO HONDA) MISSION


Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp (previously Hero Honda) to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stakeholders.

VISION
Hero Moto Corp (previously Hero Honda) now the leader in the two wheeler industry. Leaders are not born, they evolve over time. It all started on the auspicious. Baisakhi Day the 13th of April 1984, when the Hero Moto Corp (previously Hero Honda) Motor Company joined hands. On its journey to take on the No. 1 morale, Hero Moto Corp (previously Hero Honda) created some prominent milestones.. This leadership has been achieved only because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire Hero Moto Corp (previously Hero Honda) family and is a way of life in Hero Moto Corp (previously Hero Honda). The changing Scenario of increasing competition and the entry of new brands has made the credo even more relevant. It serves as a constant reminder to ensure excellence in providing service to the customer. They are providing outstanding customer service. It is in keeping with Hero Moto Corp (previously Hero Honda)s own passionate commitment to provide ultimate customer satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and delivery.

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OBJECTIVES
Hero Moto Corp (previously Hero Honda)s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Moto Corp (previously Hero Honda) to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders

ACHIEVEMENTS AWARDS AND ACCOLADES


Year Awards & Recognitions 2009
ET Awards for Corporate Excellence - Hero Moto Corp (previously Hero Honda) is the winner of the Company of the Year" award for 2008 - 09. NDTV Profit Business Leadership Award 2008 - Hero Moto Corp (previously Hero Honda) Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to Hunk in Bike category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards: 2008

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No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Xtreme 2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category) "Bike Technology of the Year" - Glamour PGM FI "Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most Trusted Company , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list 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 Moto Corp (previously 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 twowheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.The NDTV Profit Car India & Bike India Awards 2006 in the following category:

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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 2005 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 2003 Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine. 2002 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 9|Page

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 Moto Corp (previously Hero Honda) Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero Moto Corp (previously Hero Honda) Motors Ltd.

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AUTO INDUSTRY- A REVIEW


INTRODUCTION
The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after China. Indias two wheeler production is the third largest in the world after Japan and China. India has a welldeveloped two wheeler market with around 25 million households owning twowheeler. The Indian two wheeler industry made a modest beginning in the early 1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle) were the only two in production. In 1948, Bajaj auto began trading in imported Vespa scooter and the three wheeler- finally, in 1960s. it set up shop to manufacturer them in technical collaboration with piggaio of Italy. The agreement expired in 1971. In the initial stages, the scooters segment was regulated regime, foreign company was not allowed to operate in India, and waiting time for getting Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The motorcycles industry was originally dominated by Enfield with 350 cc bikes. The motorcycles industry was cc segment. The two wheelers segment was opened up to foreign competition in the mid 1980s which saw the entry of the Japanese manufactures into the count

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COMPANY PROFILE
The Hero Moto Corp (previously Hero Honda) story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Moto Corp (previously Hero Honda). This vision was driven by Hero Moto Corp (previously Hero Honda)'s commitment to customer, quality and excellence, and while doing so, maintain the highest standards of ethics and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero Moto Corp (previously Hero Honda) is closer to fulfilling this dream. This vision is the driving force behind everything that we do at Hero Moto Corp (previously Hero Honda). We understood that the fastest way to turn that dream into a reality is by remaining focused on that vision. There were many unknowns but we kept faith, and today, Hero Moto Corp (previously Hero Honda) has been the largest two wheeler company in the world for eight consecutive years. Our growth has kept compounding. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Moto Corp (previously Hero Honda) has scaled this to 15 million units in just five years! In fact, during the year in review, Hero Moto Corp (previously Hero Honda) sold more two wheelers than the second, third and fourth placed two wheeler company put together. With Hero Moto Corp (previously Hero Honda), the domestic two wheeler market was able to show positive growth during the year in review. Without Hero Moto Corp (previously Hero Honda), the domestic market would have actually shrunk. Over the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and perfected their roles as joint venture partners. What the two partners did was something quite basic. They simply stuck to their respective strengths. As one of the world's technology leaders in the automotive sector, Honda has been able to consistently provide technical knowhow, design specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Moto Corp (previously Hero Honda) is recognized today as one of the 13 | P a g e

most successful joint ventures in the world. It is therefore no surprise that there are more Hero Moto Corp (previously Hero Honda) bikes on this country's roads than the total population of some European countries put together! The company's meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Moto Corp (previously Hero Honda)'s bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Moto Corp (previously Hero Honda) has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to imagine that all this has happened in the span of just two and a half decades! The best is yet to come. During the year in review, Hero Moto Corp (previously Hero Honda) powered its way in a market that, for all practical purposes, was feeling the full effects of the economic slowdown in India. With an economic recovery now clearly on the cards, Hero Moto Corp (previously Hero Honda) is all set to ride into another summit. As Brijmohan Lall Munjal, the Chairman, Hero Moto Corp (previously Hero Honda) Motors succinctly puts it, "We pioneered India's two wheeler industry, we've steered it through difficult times; now it is our responsibility to set the pace again.'' New Models The company has a large portfolio of brands, with the moneyspinners being mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero Moto Corp (previously Hero Honda) as an inspirational brand. "The launch of CBZ and KARIZMA got us into a different league altogether. Although the sales are just about 3,000 a month, it made us an overall bike company, Hero Moto Corp (previously Hero Honda) would launch a new model of the KARIZMA by the end of current year, the Managing Director, Mr. Brijmohanlal Munjal, said. Meanwhile, the company is yet to decide on the location of its proposed Fourth manufacturing unit. The feasibility study is on'', he said, adding that the new plant was likely to come up in the next 18 months. New launches are likely to help Hero Moto Corp (previously Hero Honda) gain a market share in the coming quarters. Hero Moto Corp (previously Hero Honda) Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely 14 | P a g e

to be phased out of the market once the new model sells ``10,000 plus'' units per month. Sales Performance Hero Moto Corp (previously Hero Honda) went against the grain and created a growth trajectory all of its own. Sales of the company grew by over 11 per cent in volume terms and in value terms; they grew by over 19 per cent. Effectively, this helped the company end the year with a market share of around 60 per cent. This robust performance helped the company increase earnings margin 120 basis pointsa remarkable feat, considering that elsewhere in the world, the automobile industry went through its worst year in recent history. Hero Moto Corp (previously Hero Honda)s performance in its silver jubilee year helped it retain its position as the worlds largest two wheeler company for the eighth year in a row. It also helped the company cross the 25 million unit markbecoming the first company in India to reach this milestone. Last year, two new models were launched, namely CBZ XTREME and HUNK to address super-style and economy segments. Passion pro has found its position firm amongst Indian models, only next to Splendor, the largest selling bike in the world in terms of sales performance. CBZ was re-launched as CBZ XTREME, in April 2007, with changes and value additions to cater to specific needs of the customers. Reportedly CBZ XTREME is doing well in its segments and has sold over 10,000 units in the initial months itself. Hero Moto Corp (previously Hero Honda) has targeted a sale of over 3 million bikes for the year 2009-10. This effort is supplemented by a major launch this year, in October end; this bike will have some exclusive features and will be in the 200cc plus range. There are some ambitious programmes of launching a new range of bikes with technical support from Honda in the coming years. With a slew of such measures the capacity available at present locations can at best support two-million production target at the existing plants. The company, therefore, is looking at the possibility of setting up a third plant to meet the future demand and for which techno-economic study is in progress. New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To increasingly understand him and make him part of our ongoing business. Customer related initiative has been the increase of warranty period to three years since July 2008. This has attracted a great deal of customer attention. During the year the company has added nearly a hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during 15 | P a g e

the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans for the future In the previous year, the domestic two-wheeler industry entered a period of degrowth. However, this was arrested in 2008-09, largely on the back of Hero Moto Corp (previously Hero Honda)'s performance. After the blip of last year, the two-wheeler industry went back to a growth phase, largely driven by Hero Moto Corp (previously Hero Honda) and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a significant improvement over previous year when the industry had shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the two wheeler industry, and during the year in review, accounted for four fifth of sales. Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, high-quality scooters possibly has much to do with the revival in demand The entry segment made up of basic 100 cc bikes -Had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent. The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that came into this segment during the year. The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefitted the two wheeler industry. 16 | P a g e

The legend of Hero Moto Corp (previously 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 Moto Corp (previously Hero Honda) Motors Limited gave India nothing less than a revolution on twowheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven by the trust of over 5 million customers, the Hero Moto Corp (previously 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 expansive dealer network, and reliable after sales service, and you have one of the most customer- friendly companies.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group's dynamism have helped HHML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lall 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, and investment in equipment and facilities and through and through efficient management."

History Of Company 1984 The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL).

The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data. Hero Moto Corp (previously Hero Honda) CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light 17 | P a g e

weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc. 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for allotment as under: (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur Chand Investments (P) Ltd. (ii) (iii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000 shares, 2,40,000 shares were reserved for subscription by the employees of the

Company and 96,000 shares by business associates. The remaining 44,64,000 shares were offered at par for public subscription during November.

1985 The Company embarked on its 2nd phase of expansion of increasing its installed capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium and steel components. 1986 36,00,000 rights equity shares issued at par in prop. 3:10. 1987 The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares. Another 3,00,000 - 15% debentures were allotted to retain oversubscription. Thedebentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of allotment of the debentures 3,75,000 rights equity shares issued at par in prop.3:10 1989. The Company introduced a new model "Sleek" during July.850 No. of equity shares forfeited. 1990 The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to semi-rural conditions. In the domestic market the Company was reported to have a market share 18 | P a g e

of 46%.- 850 forfeited shares reissued. 1994 The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at Gurgaon Industrial Estate was being set up. The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4. The Company also issued 28,557 number of fractional coupons representing 14,250 shares against which shares shall be allotted to presenting the same for consolidation and allotment. The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85 crores respectively due to growth in demand for two wheelers and declining inflation. 1995 14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period up to the year 2004 which includes technology related to models of higher Engine displacement. The Company allotted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of capitalization of General Reserves. The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against which the Shares shall be alloted on presenting the same for consolidation and allotment. 1997 Hero Moto Corp (previously Hero Honda) Motors has launched its newest motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic conditions. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub 100 cc step thro bike. Hero Moto Corp (previously Hero Honda) has set up a new state-of-the-art plant, heralding a new phase of development of motorcycle industry in India, to provide the most modern and technologically advanced production facilities. Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a plant in Brazil for manufacturing hero winner scooters. A new step thru model `Street-100' with unique feature was launched on 24th January. 1998 19 | P a g e

The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative convertible preference shares of Rs. 100 each with power to increase or reduce it from time to time. The company further proposes to capitalise Rs. 19,96,87,500 from general reserve to share capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted and distributed to members of the company holding equity shares of the company in the proportion of one bonus share for every fully paid equity shares of Rs.10 each. Motorcycles major Hero Moto Corp (previously Hero Honda) is considering entry into scooters in collaboration with partners, Honda Motors, after the Japanese company decided to walk out of Kinetic Honda, their scooter venture with the Firodias of Pune. Honda Motors recently pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake. Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have signed a five-year licence and technical assistance agreement under which KHML will continue to receive the technical knowhow, critical vehicle parts and access to Honda's markets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL). - The Company changed the paradigm in two-wheelers by launching the most powerful and fast bike- CBZ with a unique feature of Transient Power Fuel Control (TPEC) system. 23,962,500 bonus shares issued in prop. 1:1. 1999 Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for financing of Hero Moto Corp (previously Hero Honda) motorcycles. The company, a joint venture between Honda Motor Company of Japan and Hero group of India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal. Leading two-wheelers manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds and scooters in India, a top company. Honda Motor Company of Japan has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint initiative with its existing joint venture company Hero Moto Corp (previously Hero Honda) Motors Ltd. 2000 20 | P a g e

Hero Moto Corp (previously Hero Honda) Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement. The Company is the largest manufacturer of motorcycles in the country. The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April. Hero Moto Corp (previously Hero Honda) Motors Ltd (HHML), has launched an upgraded version of the existing step-through motorcycle - the Hero Moto Corp (previously Hero Honda) Street. The Company was ranked as the 9th Highest Value Creator among 12 industry groups within the Bombay Stock Exchange top 100 companies over a five year period (1994-99). 2001 Hero Moto Corp (previously Hero Honda) Motors Ltd. has launched a new 100cc motorcycle named `Passion'. The Company has secured shareholders' approval for splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5. Hero Moto Corp (previously Hero Honda) Motors Ltd. has become the largest seller of motorcycles amongst all Honda companies and ventures in the world by selling one million motorcycles during the current financial year. Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper programme and fixed deposit programme of Hero Moto Corp (previously Hero Honda) Motors. Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Moto Corp (previously Hero Honda) Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on September 27.

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CLASSIFICATION OF THE INDUSTRY


The two-wheeler segment can be categorized into the scooter, mopeds, and motorcycles. Motorcycles: this segment has shown the best performance in the recent years. The market leaders in this section are Bajaj Auto. TVS, Mahindra, Hero Moto Corp (previously Hero Honda). [The splendor is the most popular segment among motorcycles.]

Two Wheeler Industry


It wasnt an easy year for the two wheeler industry. Rising interest rates and the economic slowdown resulted in delayed consumer decision making and a rise in loan defaults. Over the course of the year, banks withdrew financing facilities from satellite towns. The share of financing, which had increased rapidly to 50-60 per cent of the total retail sales by early 2007, has now come down to below 30 per This came as a major setback for the two-wheeler industry. Ongoing government investments very clearly emphasis inclusive growth through improved connectivity, job-creation and improving quality of life. The rural road outlay has been upped by close to 60 per cent, the budget for the Urban Renewal Mission has been hiked by 87 per cent, and fund allocation to the ongoing National Highways program has been upped by 23 per cent. Importantly, India has added fresh impetus to its flagship job creation program for rural India: the National Rural Employment Guarantee Scheme. During 2008-09, this scheme, which provides 100 guaranteed days of work a day for the countrys rural poor, provided employment opportunities to more than 44 million households last year; a year ago, 33 million households were covered. During the year, there have been important developments in two wheeler industry. The competition has strengthened though there are hardly any new entrants into the industry. There is an increasing emphasis on price and this has led to cost cutting efforts all across cent. the industry, thereby, making the customer an ultimate beneficiary. The trend also saw introduction of new motorcycles with capacity ranging from 100 to 250cc bikes. We anticipate that many more new models will be launched during the year and provide customers plenty of choice at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each 22 | P a g e

business has a tendency to taper and plateau after attaining a particular size. An annual growth rate of 10-12 per cent over a period of time is extremely healthy. The TCS study rankings are conducted at the motorcycle segment level to provide comparisons among similar groups of motorcycles. Motorcycles ranking highest in their respective segments for TCS are: Hero Moto Corp (previously Hero Honda) splendor plus (best standard motorcycle segment); Bajaj pulser (best executive motorcycle segment); Hero Moto Corp (previously Hero Honda) karizma (best premium motorcycle segment); and Royal Enfield Bullet Electra (best cruiser motorcycle segment). "The relatively low score for the executive segment indicates that most manufacturers have fallen short of meeting the high expectations of these buyers,".

Production, sales growth of the industry


The two-wheeler companies have been operating at high capacities due to high growth rates between 2009 and 2008. The growth is expected to lead to increase in the capacities from present 52 lakh units to 65 lakhs per annum in the year 2009-10, whereas the actual production estimates by that period at an estimated growth rate of 18% is only 60 lakhs. Charts showing two-wheeler industry growth rates Demand In India the two-wheeler provide an easy and popular mode of personal transport for the middle classes. With public transportation system being inadequate and ineffective the demand for the two wheeler is likely to rise. The two-wheeler sales are expected to touch the 5 million mark by the end of the decade as against the annual sales of 35,49,271 in 2008-09. Technology With liberalization and the increasing competition. The two- wheeler industry has witnessed technological changes. The four- stroke engine is being introduced in place of the traditional populations and fuel inefficient two stroke engine. The smaller capacity engine with the electronic fuel injection is also being used. Bajaj auto is now feeling the need to increase its technological competence. Wit the competition cashing in on the technological competence for their collaborators. Emphasizes being laid on lighter and fuel- efficient vehicles. A class of vehicle having fuel efficiency of a moped and sleekness and style of the motorcycles called scooter is growing. The vehicles offer a fuel efficiency of 60-65 km p/h. They enter into new segment, Bajaj Auto has come out with TVS with Scooty pep and Hero Moto Corp (previously 23 | P a g e

Hero Honda) has come out with a Pleasure and upgraded version of sleek. Government policy The excise duty on two-wheeler , which has previous 10 percent to 30 percent according to the engine capacity, was rationalized is only two categories size. 15 percent for 75 cc engine capacity and 25 percent for above 75 cc engine capacity the excise duty structure has been left untouched since the 1993-94 budget. The Indian two-wheeler industry is experiencing a major shift in its shape and structure. The established players in the industry are taking a hard look at their portfolio of products and are in the process of reshuffling them to meet the expectations of customers. The beneficiary is of course the consumer, who has an increased array of products to choose from. The last four-five years have brought about a great change in the consumer preferences for two-wheelers. The market leaders of yesteryears are being driven to maintain their leadership position in the forthcoming years. Those who have had a great going in the last few years are fighting hard to retain their new supremacy. The two-wheeler industry is perhaps the most happening place in terms of new models launched, upgraded products and innovative marketing techniques. Gone are the days of regulation when the production of scooters and motorcycles was limited to two or three brands and the number of products produced was decided by the Government; today the Indian two-wheeler market is highly competitive with numerous players who offer anything and everything a consumer demands and that too at affordable price. From a sellers market where one had to wait for a scooter for 12 years to the days when you can just walk into any showroom and drive out in the vehicle of your choice, the market of two-wheelers in India has come a long way. But this is only the beginning of the transformation.

Marketing and The Distribution


Like any other emerging country, India experienced the knock-on effects of the global crisis during the year in review. The effects were felt through the monetary, financial and real channels. Drying up of global finance impacted from the middle of the fiscal impacted domestic capital finance; and corporate earnings came off peaks. In April 2009, Reserve Bank of India predicted that the Indian economy's growth for 2008-09 would slow to 6.6 per cent, breaking an excellent five-year growth sequence. There were two dimensions to the economic slowdown. In 24 | P a g e

the first half, inflation ran into double digits as a result of the global crude shock and the global food grain shortage. To control inflation, the RBI clamped down on money supply, and reduced liquidity in the economy. By the time inflation started coming under control, domestic interest rates started shooting up. Meanwhile, the global crisis erupted, putting further pressure on liquidity levels. By October 2008, slowdown was clearly apparent in export-intensive sectors, both in the manufacturing and service side. By December, the slowdown turned into de-growth. The cutback in demand from Europe and the US was so sharp that even a competitive rupee, which devalued by around 12 per cent during the year, couldn't act as a buffer. By December 2008, the growth momentum of the first six months was lost. Planned investment projects were shelved; live projects faced a shortage of funds as credit flows dried up. As money became dearer, pay packets became slimmer and risk aversion grew both from the demand and supply side. Compulsions of coalition politics at the Centre and the impending Lok Sabha elections didn't help either, and slowed down reforms and implementation of projects, particularly in critical sectors like roads, ports and power. The worst hit was the manufacturing sector. From the second half of the financial year, the index of industrial production contracted on three occasions, remained close to zero on two occasions, and was mildly positive only once. Two Wheeler Financing Though two-wheeler are the most preferred from of transport in India, the fact remains that it is a lower end market product. Most two-wheeler manufacturer like Bajaj Auto and kinetic engineering have set up their own finance company since organized financiers do not think the returns are particularly attractive. The argument given by some financiers is that the price of a Yamaha or Hero Moto Corp (previously Hero Honda) is so high that people prefer to buy a second hand car instead. This is particularly true of small town where people desire to own a car and they have the means the two wheeler is then only a second vehicle for the family. MARKET MECHANICS: Since 1985, when the first Hero Moto Corp (previously Hero Honda) it has been and instant hit. A mileage miser with just about adequate performance further backed by image of Honda and Hero Cycles brand of aggressive marketing, it climbed up the sales chart outselling every other motorcycle by ten of thousands every year. Over the years, company has received its share of accolades, including the National Association of India Award against 200 contenders.

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SEGMENTATION, TARGETING & POSITIONING


From the current segmentation, targeting & positioning and consumer surveys we found that our client has targeted the following segments Congested areas of urban cities. Males/Females between the age group of 18-36 Middle class people , mostly officials & executives The client analysis from our questionnaire it was found that our client has targeted the right segment HHML is overlooking one feature in bike which is its low maintenance cost and reliability (i.e. less chances of breakdown) which is absent in its competitors. Therefore, in order to meet the sales target, two option are available with the client, one is to redesign the bike and second is to reposition the bike as Bike with one time investment. Since redesigning of bike may involve a big task and huge investment therefore we recommended repositioning the bike.

Growth
The business growth of Hero Moto Corp (previously Hero Honda) has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Moto Corp (previously Hero Honda) Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from the start and that is what has helped them to achieve break-through in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors:

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Just-in-Time
The Hero Group through the Hero Cycles Division was the first to introduce the concept of justin-time inventory. 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 and is functional even till date.. This is the Japanese style of production and in India; Hero is probably company to have mastered the art of the just-in-time inventory principle the only

Ancillarisation
An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. Employee Policy: Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform

allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-ups, not just for workers, but also for the immediate family members.

Dealer Network
The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor 27 | P a g e

action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours.

Financial Planning
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Moto Corp (previously Hero Honda) Motors Limited, the focus is on financial and raw material management and a low employee turnover.

Quality
Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes.

Diversification
Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward 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 component-manufacturing 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 28 | P a g e

production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Moto Corp (previously 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 customer

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OBJECTIVE OF THE STUDY

To Study The Marketing Strategy Of Hero Moto Corp To Study and analysis the product mix of Hero Moto Corp (previously Hero Honda). To study and analysis the pricing strategy of Hero Moto Corp (previously Hero Honda). To study and analysis the distribution policy of Hero Moto Corp (previously Hero Honda). To study and analysis the promotional activities of Hero Moto Corp (previously Hero Honda).

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PRODUCTS PROFILE
New Launches:

Glamour

Just4her

Glamour PGMFI

CD Deluxe

CBZ X-Treme

Achiever

Next Generation Pleasure of Motorcycling

Splendar NXG

Hunk

Karizama

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Campaigns: We got a Good thing Going!

A Lot less Stops

One Litre Road

It's the Honda

Stretch That Litre. Save Petrol

Chartered Accountant

Over-Time

Best Seller

Economical Honours Others:

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World's No.1!

Friends For Life

Nawab Najafgarh

of

Designed to Excel

Awaaz Consumer Awards '06

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HEROHONDA BIKE MODELS


Model: Achiver ES Model: Achiver Kick Start Model: CBZ Xtreme ES Model: CD Deluxe Model: Glamour FI Kick Start Model: CBZ Xtreme Kick Start Model: CD Dawn Model: Start Model: Glamour Kick Start Model: New Karizma Model: Splendor NXG (Alloy) Model: Hunk ES Model: Passion Plus Model: (Spoke) Model: Super Splendor Model: CBZ* Kick Start Model: Dawn Model: Splendor Model: Ambition Model: CBZ* Electric Start Model: Karizma Model: Street Dlx Model: CBZ Model: CD 100 SS Model: Passion Model: Super Splendor KS Splendor Model: Hunk Kick Start Model: Pleasure NXG Model: Splendor Plus Glamour Electric Model: Glamour FI ES

HERO MOTO CORP (PREVIOUSLY HERO HONDA) KARIZMA

Jet Set Go...


Hero Moto Corp (previously Hero Honda) Karizma was the first real sports bike in India. The bike addresses to those who have a passion for speed and styling and head-turning looks. It has 17 ps power thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and styling. Disc breaks and Mag wheels makes Karizma the safest jet on the road.

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Company
Hero Moto Corp

Stroke

Maximum Power

Displacement

(previously

Hero 4-Stroke

16.8 bhp @ 7000 rpm

223 cc

Honda) Motors Ltd.

Striking Features

Style Sporty position of the seat. It stands on its feet even at speeds reaching up to 130 kmph. Fuel Efficiency.

Color Variants

Pearl Composed Red Myth Gold Metallic Sparkling Silver Turquoise Blue Candy Blazing Red Black Moon Yellow

Price Tag - Rs 79,000 Ex-Showroom in Delhi


(The prices are to the close approximation. Please check the latest prices and variant specifications with your dealer.)

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Technical Specifications Dimension & Weight


Overall height Overall length Overall Width Wheelbase Ground Clearance Kerb weight Fuel Tank Capacity 1160 mm 2125 mm 755 mm 1355 mm 150 mm 150 kg 15 litres

Engine
Type Stroke (2/4) No. of cylinders Displacement Electrical OHC, Air Cooled 4-stroke Single Cylinder 223cc 12 V, 7.0 Ah

Transmission
No. of Gears Clutch 5 speed Multi-plate wet type

Performance
Maximum Power Max. Torque 16.8bhp @ 7000rpm -

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Start

Kick / Electric

Suspensions
Front Rear Telescopic Hydraulic Shock Absorbers Swing arm with 5 step adjustable type hydraulic shock absorber

Brakes
Front Rear Disc Brakes, 276 mm diameter Internal Expanding Shoe, 130 mm

Tyres
Front Rear 2.75 x 18 - 42 P 100 / 90 x 18 - 56 P

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More 150 cc - 500 cc Bikes in India


Bajaj Avenger Bajaj Pulsar Bajaj PulsarDTSi Hero Moto Corp (previously Hero Honda) Achiever

Bullet Electra

Bullet 350

Hero Moto Corp (previouslyHero Moto Corp (previously Honda Unicorn Hero Honda) Hunk Hero Honda) CBZ X-treme Kinetic Comet TVS Apache RTR FI 160 Thunderbird TVS Fiero FX TVS Apache Yamaha R15

Hero Moto Corp (previously Hero Honda)Hunk


Hunk, the latest launch from Hero Moto Corp (previously Hero Honda), as the name indicates is a manly bike. Hunk is the fourth product in the 150cc. Hunk is very sporty in looks and performance. The look of the bike is definitely a upright one having a brawny styling. The bike is available in the market in four colors black, blue, red and silver. The cover of air filter and battery are of black and silver colors and the tail extension has a dual black color painted on it. The engine is also not the typical black in color but it has got silver and gray colors on it. The front forks and gas filled rear have copper and gray colors. The bike has got a big tank and black alloy wheels.

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Available Models of Hunk Model


Hero Moto Corp (previously Hero Honda) Hunk 150

Price Ex.Showroom(Mumbai) Engine


149.2 cc

Price
Rs. 59,749

Hero Moto Corp (previously Hero Honda) Hunk 150 Price Rs.59,749 Price Ex. Showroom (Mumbai)

Specifications Dimensions and Weights Length Width Height Wheelbase Seat Height Ground Clearance Fuel Tank Capacity

Colors

2080 (mm) 765 (mm) 1095 (mm) 1235 (mm) 145 (mm) 12.4 (L) 39 | P a g e

Reserve Tank Capacity Self Kerb weight Kick Kerb weight

2.2 (L) 146 (kg)

143 (kg)

Performance Max Speed Acceleration(0-200m) -

Overtaking Acceleration for 200 m (at 40kmph) Acceleration (0-60 kmph) Mileage (in Indian Mode) Body and Tyre Frame Front Suspension Rear Suspension Front Tyre Rear Tyre Front Brake Drum Front Brake Disc Rear Brake Drum Rear Brake Disc Telescopic Hydraulic Swing Arm 2.75 X 18 42P 100/90 X 18 - 56P (W 240 (mm) 130 (mm) -

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Engine and Transmission Engine Type Air Cooled, 4 - Stroke Single Cylinder O 149.2 cc (cc) 14.4Ps@8500rpm 12.8Nm@6500rpm CV Generating -

Engine response Displacement Net Power Torque Air Filter Carburetor ACG Power Capacity Oil Capacity Transmission Gear Shift Pattern Electricals Ignition Battery In Kick Start Battery In Self Start Headlamp Tail / Stop lamp

12V -7 Ah 12V - 35 / 35 W 12 V - 5W, 12V - 21W

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Front Right View

Back View

Metre

Another View

Colour

Hero Moto Corp (previously Hero Honda)-Achiever


Its new Power Pro 149.1cc 4 stroke air-cooled engine produces power of 13.4 bhp (10 kW). Its petrol tank comes with excellent body graphics. Its masculine and robust structure is really eye-catching to many bikers. Riding here becomes safer due to the presence of multi-reflector headlight with halogen lamp and a position lamp, multi-reflector tail light and winkers, protective visor etc

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Available Models of Achiever Model Hero Moto Corp (previously Hero Honda) Achiever 150

Price Ex. Showroom(Mumbai) Engine Price

149.1

Rs. 53,200

Hero Moto Corp (previously Hero Honda) Achiever 150 Price Rs.53,200 Price Ex. Showroom (Mumbai) Specifications Dimensions and Weights Length Width Height Wheelbase Seat Height Ground Clearance Fuel Tank Capacity Reserve Tank Capacity Self Kerb weight Kick Kerb weight 1290 (mm) 12 (L) 134 (kg) Colors

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Performance Max Speed Acceleration(0-200m) Overtaking Acceleration for 200 m (at 40kmph) Acceleration (0-60 kmph) Mileage (in Indian Mode) Body and Tyre Frame Front Suspension Rear Suspension Front Tyre Rear Tyre Front Brake Drum Front Brake Disc Diamond Cradle Telescopic hydraulic Swing Arm 2.75 X 18 - 42 P / 4 3.00 X 18 - 52 P / 6 101 (kmph) 5 (Sec) -

240 (mm)

Rear Brake Drum Rear Brake Disc Engine and Transmission

130 (mm) -

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Engine Type Engine response Displacement Net Power Torque Air Filter Carburettor ACG Power Generating Capacity Oil Capacity Transmission Gear Shift Pattern Electricals Ignition Battery In Kick Start Battery In Self Start Headlamp Tail / Stop lamp

4 Stroke, Air Cooled 149.1 (cc) 13.4bhp@6500rpm 12.8nm@5000rpm 5-Speed -

12V - 2.5 Ah 35/35 W Halogen -

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Herohonda-Glamour
Hero Moto Corp (previously Hero Honda) Glamour is equipped with all the required market friendly features. Two models of this bike are based on all the technological advances. It is the bike for every kind of customers and with different choices. This bike comes with all the facilities that all finicky bike lovers really look for in his best possession Available Models of Glamour Model Herohonda Glamour Fi Herohonda Glamour Fi Price Rs.53,000 Price Ex. Showroom (Mumbai) Price Ex.Showroom(Mumbai) Engine 124.8 Price Rs. 53,000

Specifications Dimensions and Weights Length Width Height Wheelbase Seat Height 2005 (mm) 735 (mm) 1070 (mm) 1265 (mm) -

Colors

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Ground Clearance Fuel Tank Capacity Reserve Tank Capacity Self Kerb weight Kick Kerb weight Performance Max Speed Acceleration(0-200m) Overtaking Acceleration for 200 m (at 40kmph) Acceleration (0-60 kmph) Mileage (in Indian Mode) Body and Tyre Frame Front Suspension Rear Suspension Front Tyre Rear Tyre

150 (mm) 12 (L) 1.5 (L) 129 (kg) 125 (kg)

Telescopic Hydraulic Swing Arm 2.75 x 18 - 42 P 3.0" x 18 - 52 P

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Front Brake Drum Front Brake Disc Rear Brake Drum Rear Brake Disc Engine and Transmission Engine Type Engine response Displacement Net Power Torque Air Filter Carburettor ACG Capacity Oil Capacity Transmission Gear Shift Pattern Electricals Power Generating

240 (mm) 130 (mm) -

Air-Cooled, 4-stroke OHC 124.8 (cc) 9.0bhp@7000rpm 10.3Nm@4000rpm -

4-Speed -

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Ignition Battery In Kick Start Battery In Self Start Headlamp Tail / Stop lamp

35W / 35W - Halogen -

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Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-organized research plan, it is impossible to complete the project and reach to any conclusion. The project was based on the survey plan. The main objective of survey was to collect appropriate data, which work as a base for drawing conclusion and getting result. Therefore, research methodology is the way to systematically solve the research problem. Research methodology not only talks of the methods but also logic behind the methods used in the context of a research study and it explains why a particular method has been used in the preference of the other methods

Research design
Research design is important primarily because of the increased complexity in the market as well as marketing approaches available to the researchers. In fact, it is the key to the evolution of successful marketing strategies and programmers. It is an important tool to study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A research design specifies the methods and procedures for conducting a particular study. According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of investigation conceived as to obtain answers to research questions and to control variance.

Type of research is Descriptive Research


The type of research adopted for study is descriptive. Descriptive studies are undertaken in many circumstances when the researches is interested to know the characteristic of certain group such as age, sex, education level, occupation or income. A descriptive study may be necessary in cases when a researcher is interested in knowing the proportion of people in a given population who have in particular manner, making projections of a certain thing, or determining the relationship between two or more variables. The objective of such study is to answer the who, what, when, where and how of the subject under investigation. There is a general feeling that descriptive studies are factual and very simple. This is not necessarily true. Descriptive study can be complex, demanding a high degree of scientific skill on part of the researcher.

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Descriptive studies are well structured. An exploratory study needs to be flexible in its approach, but a descriptive study in contrast tends to be rigid and its approach cannot be changed every now and then. It is therefore necessary, the researcher give sufficient thought to framing research. Questions and deciding the types of data to be collected and the procedure to be used in this purpose. Descriptive studies can be divided into two broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional study is concerned with a sample of elements from a given population. Thus, it may deal with household, dealers, retail stores, or other entities. Data on a number of characteristics from sample elements are collected and analyzed. Cross sectional studies are of two types: Field study and Survey. Although the distinction between them is not clear- cut , there are some practical differences, which need different techniques and skills. Field studies are ex-post-factor scientific inquiries that aim at finding the relations and interrelations among variables in a real setting. Such studies are done in live situations like communities, schools, factories, and organizations. Another type of cross sectional study is survey result, which has been taken by me. A major strength of survey research is its wide scope. Detail information can be obtained from a sample of large population .Besides; it is economical as more information can be collected per unit of cost. In addition, it is obvious that a sample survey needs less time than a census inquiry. Descriptive research includes survey and fact finding enquiries of different kinds of the major purpose. Descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds including comparative and co relational methods. The reason for using such needs to be flexile in its approach, but a descriptive study

BRANCH
1 2 3 in contrast tends to be rigid and its approach cannot be changed ever now and then.

DEALER MANAGEMENT
Mapping of regional dealers. 52 | P a g e

They have been divided into three categories on the basis of their turnover and the selling capacity. -1 -2 -3 -1 Includes the modern trade and they have direct billing from the branch office. They have high turnover and the company depends heavily on them -2 includes the distributors. They have direct billing from the branch office. Their turnover is also high. -3 Includes the sub dealers .They have direct billing from distributors or from the branch office. Their turnover is not so high, but there are few sub dealers whose potential is quite high. According to sales the branch has designated as gold and silver sub dealers.

Data collection methods:


After the research problem, we have to identify and select which type of data is to research. At this stage; we have to organize a field survey to collect the data. One of the important tools for conducting market research is the availability of necessary and useful data. Primary data: For primary data collection, we have to plan the following four important aspects. Sampling Research Instrument Secondary Data :The Companys profile, journals, product profile ,internet, news paper and various literature studies are important sources of secondary data. Data analysis and interpretation 1. Questionnaires 2. Pie chart and Bar chart 53 | P a g e

Questionnaires: This is the most popular tool for the data collection. A questionnaire contains question that the researcher wishes to ask his respondents which is always guided by the objective of the survey. Pie chart: This is very useful diagram to represent data , which are divided into a number of categories. This diagram consists of a circle of divided into a number of sectors, which are proportional to the values they represent. The total value is represented by the full create. The diagram bar chart can make comparison among the various components or between a part and a whole of data.

Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a number of whispered bar, which originate from a common base line and are equal widths. The lengths of the bards are proportional to the value they represent.

Preparation of report:
The report was based on the analysis and presented with the findings and suggestions. The sample of the questionnaires is attached with the report itself.

Sampling Methodology:
Details of the sampling methodology, I have made questionnaire. The one is made for the Customer. No. of questions in questionnaires for customer: 12 No. of question related to Hero Moto Corp (previously Hero Honda) : 06 No. of people met during the research: 100 No. of respondents during the research: 90 Sample unit Professionals, Business man, Employees, Students

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DATA ANALYSIS AND INTERPRETATION


Q1) Which bike do you have?

Hero Honda Bajaj Any other

30 30 30

INTERPRETATION: - Out of the sample size of 90 customers, 30 customers are of Hero Moto Corp (previously Hero Honda), 30 are of Bajaj and 30 customers of TVS bikes are taken into consideration.

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Q2) Which Model do you Have?

Hero Moto Corp Splender Passion Karizma Any other 13 5 2 10

Bajaj CT 100 Discover Pulsar Any other 5 11 10 4

TVS Flame Star City Apache Any other 4 9 7 10

HERO MOTO CORP (PREVIOUSLY HERO HONDA)

Any other

Karizma Series1 Passion

Splender

10

15

20

INTERPRETATION: - In Hero Moto Corp (previously Hero Honda) mostly the customers are having splendor while the ratio of the customers using Passion, Karizma and other bikes are comparatively low.

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BAJAJ

INTERPRETATION: - In Bajaj the customers are giving more preference to Discover and Pulsar models

TVS

INTERPRETATION:- In TVS Bikes the customers are givig more preference to the other models rather than Flame,Starcityand Apache.

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Q3) In which family Income level do you Fall?

100000-200000 200000-300000 300000-400000 above 400000

22 45 23 10

INTERPRETATION: - The maximum numbers of customers that are using these bikes fall in the income group of 200000-300000. While this ratio is minimum in case of customers whose income level fall between 300000-400000.

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Q4) For how long do you own a bike? 0-1 year 1-2 year 2-3 year above 3 year 34 29 26 11

INTERPRETATION: - It is observed that mostly the customers are having new bikes.

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Q5) For what purpose do you use your Motor Bike? Hero Moto Corp (previously Hero Honda) Bajaj

TVS

38 Office Purpose Personal purpose Joy Purpose Other 13 17 10 40 42 15 18 15 27 10 15

INTERPRETATION:- The customers are using their bikes mostly for official and personal purpose.

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Q6) How do you come to know about this Motor Bike? Hero Moto Corp (previously Hero Honda) Newspaper Television Magazine Friends & Relative 28 22 8 37 TVS

Bajaj 33 28 16 13 22 18 28 22

INTERPRETATION: - It is observed that the awareness of Hero Moto Corp (previously Hero Honda) bikes mostly comes from friends while of Bajaj and TVS the awareness comes from newspapers and televisions

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Q7) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say 65 15 20

Cant say 20%

No 15% Yes 65%

INTERPRETATION: - Out of the sample size of 100 customers, 65 customers agrees with the fact that advertisements play a very significant role in influencing their behavior to choose the bike. On the other hand 15 customers do not agree to this fact. While remaining 20 customers are not sure about it.

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Q8 Are you satisfied with the performance of the bike that you are currently havin? Yes No Cant say 55 28 17

Cant say 17%

No 28%

Yes 55%

INTERPRETATION:- Out of the sample size of 90 customers, 55 customers says that they are satisfied with the performance of their bikes. On the other hand 28 customers are not satisfied with the performance of the bikes that they are having. While the remaining 17 customers are unable to say anything.

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Q9) Do you have full knowledge about Bikes before buying? Hero Moto Corp (previously Hero Honda) Bajaj Yes No Cant Say 42 37 11 34 27 29

TVS

37 22 31

INTERPRETATION:- It is observed that most of the customers are having full knowledge of the bike before purchasing.

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Q10) Which Factor below Influence your decision? Hero Moto Corp (previously Hero Honda) Bajaj Price Mileage Quality Resale Value 17 28 11 12 22 15 20 14

TVS

28 15 16 17

Status symbol 32 19 14 HERO MOTO CORP (PREVIOUSLY HERO HONDA)

INTERPRETATION:- In Hero Moto Corp (previously Hero Honda) bikes the mileage of the bike and the value that it adds to the status symbol of the customers influences the decision criteria of most of the customers.

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BAJAJ

INTERPRETATION:- In Bajaj bikes customers gets more influenced by the price and quality of the bike and also they think that it adds value to their prestige.

TVS

INTERPRETATION: - In TVS bike the economic price of the bikes influences the buying behavior of the customers. 67 | P a g e

Q11) How would you rate the following factors of Bikes with respect to different company? Hero Honda Mileage Price Pick up Maintenance Look & Shape Brand Image 74% 68% 70% 58% 85% 53% Bajaj 72% 65% 80% 62% 80% 55% TVS 68% 47% 62% 74% 72% 69%

INTERPRETATION: - It is observed that in rating of different features of different bikes people give maximum rating to the look and shape of the bike. At the second level they give their rating to the pick up. At the third level they rate mileage. And at the fourth level they give points to maintenance. At last they rate price and brand image. 68 | P a g e

Q12) If new Bike with good features comes in, then would you like to change your bike? Hero Moto Corp (previously Hero Honda) Yes No Cant say 10 16 4 TVS

Bajaj 16 11 3 14 11 5

INTERPRETATION:- It is observed that the customers of Hero Moto Corp (previously Hero Honda) bikes are not ready to change their bikes even if a new bike comes in with good features. While majority of the customers of Bajaj and TVS are ready to change their bikes if new bike provides some good features to them.

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FINDINGS
During this research project I came in to contact with many customers who are having bikes. It has been found that in Hero Moto Corp (previously Hero Honda) mostly the customers are having splendor while the ratio of the customers using Passion, Karizma and other bikes are comparatively low. In Bajaj the customers are giving more preference to Discover and Pulsar models and in case of TVS Bikes the customers are givig more preference to the other models rather than Flame,Starcityand Apache. The maximum numbers of customers that are using these bikes fall in the income group of 200000-300000. It has been observed that the customers are using their bikes mostly for official and personal purpose. It is observed that the awareness of Hero Moto Corp (previously Hero Honda) bikes mostly comes from friends while of Bajaj and TVS the awareness comes from newspapers and televisions. Out of the sample size of 100 customers, 65 customers agree with the fact that advertisements play a very significant role in influencing their behavior to choose the bike. On the other hand 15 customers do not agree to this fact. While remaining 17 customers are not sure about it. When the customers are asked that are they satisfied with the performance of their bikes then most of them agrees to the fact. Out of the sample size of 90 customers, 55 customers says that they are satisfied with the performance of their bikes. On the other hand 28 customers are not satisfied with the performance of the bikes that they are having. While the remaining 10 customers are unable to say anything. It is observed that most of the customers are having full knowledge of the bike before purchasing It has been seen that In Hero Moto Corp (previously Hero Honda) bikes the mileage of the bike and the value that it adds to the status symbol of the customers influences the decision criteria of most of the customers. In Bajaj bikes customers gets more influenced by the price and quality of the bike and also they think that it adds value to their prestige. While in case of TVS bike the economic price of the bikes influences the buying behavior of the customers.

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It is observed that in rating of different features of different bikes people give maximum rating to the look and shape of the bike. At the second level they give their rating to the pick up. At the third level they rate mileage. And at the fourth level they give points to maintenance. At last they rate price and brand image. It is observed that the customers of Hero Moto Corp (previously Hero Honda) bikes are not ready to change their bikes even if a new bike comes in with good features. While majority of the customers of Bajaj and TVS are ready to change their bikes if new bike provides some good features to them.

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CONCLUSION
1. Most of the Flame, Apache, Pulsar, CBZ & Karizma are purchased by young generation 18 to 30 years because they prefer stylish looks and rest of the models of Hero Moto Corp (previously Hero Honda), TVS and Bajaj are purchased more by daily users who needs more average of bikes than looks. 2. Hero Moto Corp (previously Hero Honda) is considered to be most fuel-efficient bike on Indian roads. 3. Service & Spare parts are available throughout India in local markets also. 4. While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. 5. Majority of the respondent had bought their motorcycle more than 3 years. 6. Number of products is large in comparison to others 7. The distribution policies are more efficient then any other company . 8. Hero Moto Corp (previously Hero Honda) make more stress on advertisement on television and help there dealers for local advertisement. 9. The pricing policy of Hero Moto Corp (previously Hero Honda) is for better than the pricing policy of the competitors. 10. Now the performance of Hero Moto Corp (previously Hero Honda) product is also very good regarding to the bike owner of the Hero Moto Corp (previously Hero Honda).

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RECOMMENDATIONS
1. Hero Moto Corp (previously Hero Honda) should think about fuel efficiency in case of upper segment bikes. 2. 3. More service centers should be opened. Maintenance cost and the availability of the spare parts should also be given due importance. 4. 5. 6. 7. 8. 9. They also introduce some good finance/discount schemes for students. The price should be economic. Advertisement policy should be emphasizing on the unique point of the bike. The company should follow the easy lone facility. Looks of Hero Moto Corp (previously Hero Honda) bikes should be modified. The company can affect the market through linking the brand with Indian tradition and culture. 10. Showroom employees are unable to convince the customer, so appropriate training programs should be launched to educate the employees. 11. The company should followed some sale promotion strategies like exchange offer, discount etc. 12. The company should generate more brand loyalty through aggressive promotional tools and better quality product. 13. 14. The company should provide the incentive plan to the sales persons of the showroom. The company should provide a Gift Boucher like key ring, manual bag, calendar etc. to the bike owner 76 | P a g e

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BIBLIOGRAPHY
1. www.herohonda.com 2. www.google.com 3. www.bajaj.com 4. www.twowheeler.com 5. www.extrememachines.com

BOOKS: Marketing Management (Philip Kotler) Marketing Management ( Rajan Saxena) Foundation of Advertising Theory & Practice (S.A.Chunawala /K.C. Sethia.) Fundamental of Marketing (Etzel Machel / J.Bruce.Walker)

SOURCE Advertising and Marketing Annual Report of Hero Moto Corp (previously Hero Honda)

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QUESTIONNAIRE
NAME: - CONTACT NO . AGE:15-20 25-30 OCCUPATION:Businessman Student 20-25 Above 30 Employee Other

Q1) Which Bike do you have? Hero Moto Corp (previously Hero Honda) Bajaj TVS

Q2) Which Model do you have? Hero Moto Corp (previously Hero Honda): Karizma Bajaj: CT 100 Pulsar TVS:Flame Star city Splendor Other Discover Other Apache Other Passion

Q3) In which Family Income do you Fall? 100000-200000 300000-400000 200000-300000 Above 400000 80 | P a g e

Q4) For how long do you own a Bike? 0-1 year 2-3 year 1-2 year above 3 years

Q5) For what purpose do you use your Motor Bike? Office Purpose Joy Purpose Personal Purpose Other

Q6) How do you come to know about this Motor Bike? Newspaper Magazines Television Friends/Relatives

Q7) Are you satisfied with the performance of the bike that you are currently having? Yes No Cant say

Q8) Does Advertisement Influence your decision in choosing a Motor Bike? Yes No Cant say

Q9) Do you have full knowledge about Bikes before buying? Yes No Cant say

Q10). Which factor below influence your decision? Price Resale Value Mileage Status Symbol 81 | P a g e Quality

Q11) How would you rate the following factors of bikes with respect to different companies? Hero Moto Corp (previously Hero Honda) Bajaj Mileage Price Pick up Maintenance Look/Shape Brand Image TVS

Q12) If new bike with good feature comes in, then would you like to change your bikes? Yes No Cant say

Q13) Any Suggestions for Company

Date:

(Signature)

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