Brand image of Hero Honda

A STUDY ON
´Brand Image of Hero Hondaµ

Research Project Report

Submitted by Nitin Kumar Tiwari Roll No. 3435 MBA 2nd SEM Year-2008/09

Guided by Mr. Nikhilesh Kariya (H.O.D) MBA Department

Department of Management R.C.E.T Bhilai (C.G)

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³Brand Image of Hero Honda´

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Brand i age of Hero Honda 

DECLARATION

I, Nitin Kumar Tiwari a student of MBA II Semester at Rungta College of Engineering & Technology hereby declare that this research report under the title ³Brand Image Of Hero Honda´ is the record of my original work under the guidance of Mr. Nikhilesh Kariya (HOD) Dept. of MBA, R.C.E.T Bhilai .This report has never been submitted to anywhere else for award of any degree or diploma.

Place: Bhilai Date:06/04/09

Department of Management R.C.E.T Bhilai (C.G.)

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Brand image of Hero Honda

Certificate

This is to certify that Mr. Nitin Kumar Tiwari a student of MBA II- SEM at our institute under my guidance and supervision has carried out this Project work under title ³Brand Image of Hero Honda´. This Research Project Report is an original one.

Place: Bhilai Date: 06/04/09

(Project Guide) Mr. Nikhilesh kariya (HOD) Department of management R.C.E.T Bhilai

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Brand image of Hero Honda

ACKNOWLEDGEMENT

Rarely does anybody get the opportunity to acknowledge some who has really helped in the development of work, helped to grow in a new field and motivate towards the dimension of the some. I am extremely glad to state that today I have this opportunity.

I wish to express my sincere gratitude to Mr. Nikhilesh Kariya (H.O.D.) and also Mr. A. Jagdeesh (Director RCET), under whom I had under taken this project. Extended full cooperation in completion of this project.

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Brand image of Hero Honda

Table of content

Chapter Topic No. 01Introduction Scope of the study Statement of problem Objective of the study 02Research methodology Research design Sampling plan Hypotheses Limitations Organizational profile Hero Honda mission Main text

Page No. 07 08 09

08 09 10 11 12 13 14

03-

04-

05-

Analysis & Interpretation of Data

06-

Findings & Conclusions

07-

Suggestions

08-

Questionnaire Bibliography

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Brand image of Hero Honda

INTRODUCTION

In 1984-85 (Hero Honda Motor Limited) HHML by the collaboration of hero Honda limited and Japanese company Honda Motors Limited. The first 100 cc with a stoke motor cycle is made by Hero Honda Limited in India.

HHML (Hero

Honda

Motor

Limited) has

two

plants

for

the

manufacturing the different model of Hero Honda motorcycle.

1. Gurgoan 2. Dharuhera. Hero Honda the company and reflect one of the most outstanding and inspiring stories of success in corporate India.

In 60th decade several motorcycle were running in the Indian roads those are sunbeam, AIS, Triumph, BBA, and Royal Enfield from those motor cycle only Royal Enfield has existence in motor cycle market. After 60th decade some other motorcycle and scooter had been launched in Indian two wheeler market those are Rajdoot, Java, Vespa and Lamrata etc.

Indian waitressed the first spate of modernization, in two wheeler industries in 1984-85, during that period piaggio sauntered the Indian market in a joint venture with lohia machines and our major Japanese motor cycle
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Brand image of Hero Honda

manufacture set up joint venture companies to produce 100 cc motor cycles for the first time.

SCOPE OF STUDY

This study enables the Company to know what the consumer expects from a Company and also help in exploring the reason for loyalty of the consumer towards the particular company. This research helps the company to think about its marketing strategies.

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Brand image of Hero Honda

STATEMENT OF PROBLEM

Determining brand image, sales and service effectiveness of Hero Honda.

I)

Analysis potential customers of different two-wheeler.

II)

How to enhance Hero Honda market.

III)

Bugging perception PF consumers of Hero Honda in comparison to other brand.

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Brand image of Hero Honda

Objectives

1) 2) 3) 4)

To know the market share of Hero Honda. To know the perception of customers regarding bikes. To determine the customers satisfaction regarding bikes. To determine the factors influencing the choice of customers regarding bikes.

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OPPORTUNITIES

Consumer has the perception that it is a good bike but if proven that it is a best bike then sales could increase and market share could be enhanced.

Hero Honda offers their customers best quality in economic price so that people rely on quality and performance of the Hero Honda.

Being Indian consumers have the perception of getting its spares parts easily and on cheaper price. This enhanced its market share because people opportunities for bike, which are easily repairable at cheaper price.

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Brand image of Hero Honda

RESEARCH METHODOLOGY

METHODOLOGY

The study was conducted in Durg ± Bhili region. For the study two questionnaires were formulated and administered to the respondent. Questionnaire was open ended. The medium of this questionnaire was English. The Questionnaire was administered face to face with respondents. Some of these were filled up after a small conversation relevant to the subject of study.

DATA COLLECTION METHOD

Primary Data: The primary data for the study was collected by personally administering the questionnaire to respondent and observation.

Secondary Data: The secondary data for the study was collected for other information from books, internet and Hero Honda Magazines.

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Brand image of Hero Honda

RESEARCH DESIGN

Every research project conducted scientifically has a specific framework for guiding and controlling data collection. This framework is called ³Research Design´ A research design is the specification of methods and procedures for acquiring the information needed to structure or to solve problem. It is the overall operational pattern or framework of the project that stipulates what information to be collected from which sources by what procedures. The major function of research design is to ensure that the required data are collected accurately and economically. The type of study, which I will, undertake in a conclusive, descriptive study. As under the conclusive study, hypothesis is designed and information is collected from a representative sample of components, then information collected is analyzed by means of tables and graph.

SOURCE OF INFORMATION
The source of information for my research work was both through primary and secondary data. I used more of primary data because of its originality and secondary data, where collection of primary data not possible.

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Brand image of Hero Honda

SAMPLING AND SAMPLE SIZE

SAMPLING
The sample for the study is confined to people using different models of motorcycle in Durg - Bhilai region. Sampling size of 50 people were taken and interviewed for the study of the sampling was done through random sampling. The sample size was divided into two groups.

DEFINING THE POPULATION GROUP -I
Element: User of Hero Honda Sampling Size: 50 Extent: Durg-Bhilai Time: 01 mar to 31 mar.

GROUP -II
Element: User other than Hero Honda Sampling Size: 50 Extent: Durg-Bhilai Time: 01 mar to 31 mar

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Brand image of Hero Honda

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Brand image of Hero Honda

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Brand image of Hero Honda

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Brand image of Hero Honda

LIMITATION OF THE STUDY

Any study is subjected to constraints like time, effort, cost, raw material etc.

This study was conducted under some limitations.  The sample size of fifty respondents for the consumer survey is very small. 

The time given for survey i.e. one month is too less for the study.  The study is spread in Durg - Bhilai region because survey in all the areas is very time consuming. 

The sample was collected using connivance ± sampling techniques. As such result may not give an exact representation of the population.

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Hero Honda's company profile

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 20 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 ² a feat unparalleled in global automotive history. Hero Honda bikes currently roll out from its three globally Benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year. These plants together are capable of producing out 4.4 million units per year. Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies. Hero Honda values its relationship with customers. Its unique CRM initiative ± Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. 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.

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Brand image of Hero Honda

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.''

HERO HONDA'S MISSION

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 Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

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Brand image of Hero Honda

SPECIFICATION

HERO HONDA (PASSION)
Engine: 4 stroke, single cylinder, air cooled, OHC Displacement: 97.2 cc Max power: 12.8 Ps 8000 rpm Wheel base: 1235 mm Ground Clearance: 160 mm Fuel tank capacity: 12.8 ltr (1.1 reserves) Types of brakes (Front): Drum version (130 mm .dia.) (Rear) ± drum (130 mm.dia.) Carburetor: Side draft type (with IPSC system) Engine oil quantity: 900 ml Tyre size (Front) : 2.75 X 18 ± 42 P (Rear) ± 100 190 X 18-36 P Ignition: Electronic CDI

Max Speed: 120 Kmph Final Drive: Roller Chain Head light: Halogen Bulb 35 W / 35 W

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Brand image of Hero Honda

WORKSHOP PROCESS

(1)

When vehicle comes to the watchman check Vehicles number on the gate.

(2)

Prepare job Card with complete details of complain and warranty/ paid and complete detail of vehicles.

(3)

Job Card entered to the particular mechanic after completing work.

(4)

Washing the vehicles.

(5)

Final Check up of the vehicles and delivery the vehicles to the customers.

(6)

Mechanic is available to bring the vehicles from workshop to customer places.

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Brand image of Hero Honda

SHOW ROOM ACTIVITIES

The name of the show room with sales, spares and service station is chauhan Automobiles Durg. This show room is well design and very attractive. In this show room well designed and stand keep the different model of Hero Honda bikes to attract people.

For the purpose of offer sales service a sell equipped and modernized work shop is there which certain all modern equipment to repair and overhauling the Hero Honda bikes.

There are employees are engaged in this show room in which 1 General Manager, 1 Sales Manager, 3 Accountant, 3 Carrier, 10 in Sales Selection, 3 in audit section, 3 in Spare part counter, 2 in Godown, 5 for marketing, 3 for Service, other 15 Mechanics. All staff is well behaved, helpful and co-operative.

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Brand image of Hero Honda

SERVICE POLICY

Normal Warranty: 6 months from the sales or 7,500 kilometers, which is earlier?

Special Warranty Engine: 2 yrs from the date of sale or 30,000 kilometers, which is earlier?

Each Hero Honda buyer shall be entitled to six free services. The same can be availed through free service coupons provided in the owner¶s manual.

Free Service Schedule: 1st 2nd 3rd 4th 5th 6th

Service

Service

Service

Service

Service

Service

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Fr

S rvic :

500-750 kms

30 days

2500-2800 kms

90 days

5000-5500 kms

180 days

7000-7500 kms

210 days

9000-9500 kms

270 days

11000-11500 kms

365 days

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Brand image of Hero Honda

Through availing or individual free service is not limited by time, it may be noted that all the six service have to be availed within one year of date.

SWOT ANALYSIS

STRENGTH-

Corporate image of Hero Honda can be encased. 

Brand Image: Hero Honda is a well-established brand name in the market. Consumers have a good image and perception about its product. 

Technical superiority: Hero Honda proved itself as a role model in its market.  The biggest strength of Hero Honda is to passion plus and splendor plus that is proving itself as a role model in its market. 

Customer¶s satisfaction: Its existing customer is completely satisfied with the Hero Honda and feels proud to own their own Hero Honda. 

Economical in the long run.  People (non-customer) think it is a good motorcycle.

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Brand image of Hero Honda

THREATS

There is a major threat from company like Bajaj, which is coming with heavy publicity and good scheme for customers. Old brand like Yamaha also a measure threat for Hero Honda because of its good image pick-up.

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Brand image of Hero Honda

WEAKNESS

Dealer network is very poor particularly in Raipur Distt.

Marketing strategy and the marketing efforts are not so aggressive like they have to be for the coming tough competition. Now it should be realized that it is not neck-to-neck competition but a cutthroat competition.

After sale service and the workshop service are not up to the mark. Customer is not fully satisfied with the showroom facilities.

Always

remember

one

satisfied

customer

creates

one

prospective

customer but one dis-satisfied customer will break 10 prospective customers.

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Brand image of Hero Honda

Analysis & Interpretation of Data

Graph-01

Which bike you drive?

18

16
14

12 10
8

6
4 2

0

Hero Honda

Bajaj

T.V.S.

Other

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Graph-02

In which family income level do you fall?

25

20

15

10

5

0

1,00,000

2,00,000

3,00,000

4,00,000

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Brand image of Hero Honda

Graph-03

How do you come to know about this bike?

30

25

20

15

10

5

0

Newspaper

Television

Megazine

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Brand image of Hero Honda

Graph-04

For what purpose do you use your motorbike?

18

16
14 12

10
8

6 4
2

0

Office use

Personal use

Study purpose

Other

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Graph-5

In your motorbike what feature you most want?

16 14 12

10 8 6 4 2 0

Price

Mileage

S ee

Look

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GRAPH-06
In motorbike why you purchased Hero Honda because in market various bikes are available?

Series 1
25

20

15

10

5

0

Quality

eatures

Price

Relai ility

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Graph-07

After purchase this bike how you feel it¶s more reliable yes or not?

Series 1
30 25

20 15 10
5 0

Yes

No

No Comments

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Graph-08

You want to add some new features, or you are satisfied?

Series 1
25

20

15

10

5

0

Satisfie

ot satisfie

A

ne

features

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Graph-09

Have this bike is according to your requirement?

25

20

15

10

5

0

yes

o

o comments

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Graph-10

How you say about the maintenance?

30

25 20 15 10 5 0

Costly

o maintenance

Least maintenance

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Brand image of Hero Honda

Graph-11

How you say about its look and styles?

25

20

15

10

5

0

Goo

a

Average

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Graph-12

You want to give any advice or suggestions about its present features?

25

20

15

10

5

0

Yes

o

o comments

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Brand image of Hero Honda

Graph-13

Are you satisfied with the customer service of your bike?

35

30 25
20

15
10

5
0

Yes

No

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Brand image of Hero Honda

Graph-14
Are you satisfied with the showroom of your bike?

40

35 30 25 20 15 10 5 0

Yes

No

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Brand image of Hero Honda

Graph-15

If any company launch new bike you purchase or not?

30

25

20

15

10

5

0

Yes

No

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Brand image of Hero Honda

Major Findings

1. 2.

Hero Honda enjoying the highest brand equity. In the mind recall Hero Honda get the comparison to its competitors. highest attention in

3.

Awareness about advertising of motorcycle is very high. Television, newspaper and hoarding are main source of advertisement.

4. 5. 6. 7.

The corporate image of Hero Honda is very high. Hero Honda has strong positive image. Customers satisfaction is very high i.e. 96 %. Most of the people who have a Hero Honda motorcycle, they took it to the service station or maintenance and repairing.

8. 9.

The people of age group 8-48 mostly prefer Hero Honda bikes. Most people in income group 1000-5000 prefer to purchase moped and people in the group 5000-15000 prefer to purchase motorcycle and scooter and the people whose monthly income is above 15000 prefer to purchase four wheelers.

10.

Most of the people want power, style, good look and good mileage in their motorcycle.

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Brand image of Hero Honda

CONCLUSION

Our objectives of finding the brand image, sales and service effectiveness of Hero Honda. The conclusion drawn from the study says: 

Hero Honda enjoying the high brand equity. 

Market share of any brand mainly depends upon good profit margin, aggressive advertisement, best quality and prompt supply, for improving market share a company should improve above factor. 

We should implicit some scheme so as to attract the potential customers of our product. Some suggestions are given further in the report. 

Mostly 18-48 yrs age groups prefer Hero Honda. 

Most of the people want power, style, and good mileage in their motorcycle.

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Brand image of Hero Honda

PREFACE
The topic chosen by me for my project research is ³Brand Image of Hero Honda´. The two ± wheeler market specifically in the stylish motorcycle. At present Hero Honda is market leader in Indian market.

Today there are various companies coming to the Indian market and this certainly will exist a cutthroat competition in this field. I have chosen Hero Honda as the topic essence of my project. Today two ± wheeler consumer due to new manufacturing entrant has started getting a wide choice while buying one. These gave to consider the facility provided by the two - wheeler. The price, mileage, maintenance and service etc while buying a two - wheeler.

A normal customer is quit puzzled and faces for a even sometime huge problems in deciding which bike to buy. I realized the problem and decided to take this up as a challenge and provided answer to as what is the requirement of Hero Honda.

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Brand image of Hero Honda

SUGGESTION 

Service provided by the service station is so expensive so try to reduce the cost of service to get more popularity between all two wheelers. 

Try to reduce the cost of spare parts.  At present television and newspaper are most effective media, so pay more attention toward newspaper for more publicity in Durg-Bhilai region. 

Instead of giving black and white advertisement, colored advertisement should be proffered. 

Customer satisfaction level is moderate and tries to increase customer satisfaction.  Hero Honda should develop a strong transportation infrastructure to increase immediate delivery. 

Inter personnel communication skill should be developed with their customer to get continuous feedback.

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Brand image of Hero Honda

QUESTIONNAIRE
Q.No.1- Do you have any bike? Yes No

Q.No.2- Which bike you drive? Hero Honda T.V.S Bajaj Other

Q.N0.3- In which family income level do you fall? 1, 00,000 3, 00,000 2, 00,000 4, 00,000

Q.No.4- How do you come to know about this bike? Newspaper Television Magazine

Q.No.5- For what purpose do you use your motor bike? Office use Study purpose Personal use other

Q.No.6- In your bike what feature you most want? Price Speed Mileage Look

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Brand image of Hero Honda

Q.No.7- In motorbike why you purchased Hero Honda because in market various bikes are available? Quality Price Features Reliability

Q.No.8- After purchase this bike how you feel it¶s more reliable? Yes No No Comments Q.No.9- You want to add some new features or you are satisfied? Satisfied Not satisfied Add some features

Q.No.10- Have this bike is according to your requirement? Yes No No Comments

Q.No.11- What you say about the maintenance? Costly No maintenance Least maintenance

Q.No.12- What you say about its look and styles? Good Bad Average

Q.No.13- You want to give any advice or any suggestion about its present Features? Yes No No Comments

Q.No.14- Are you satisfied with the customer service of your bike? Yes No

Q.No.15- Are you satisfied with the showroom of your bike? Yes No

Q.No.16- If any company launch new bike you purchase or not? Yes No

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Brand image of Hero Honda

Name of the respondent Sex Age M/F 0-20 20-40 40-Above

Qualification

BIBLIOGRAPHY 

Marketing management by Philip Kotler  Research Methodology by C.R.Kothari  Marketing Research by Dr.D.D.Sharma  Fundamental of Marketing by William J. Stantan, Michael J. Etzd 

www.herohonda.com  www.twowheeler.com  www.extrememachines.com

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