Professional Documents
Culture Documents
CUSTOMER SATISFACTION
With reference to
HERO MOTOCORP
VISAKHAPATNAM
Rushikonda
Visakhapatnam– 530045.
(2017-2020)
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CERTIFICATE
This is to certify that this project report titled “A Study on customer satisfaction” at
RATNA HERO MOTOCORP, Vishakhapatnam. It is a bonafide work done and submitted
by Mr. GARUDA GANESH under my guidance, impartial fulfillment for the award of
Bachelor of Business Administration.
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DECLARATION
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ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Professor. S.RAJINI, Principal of Gayatri
vidya parishad College for Degree & PG courses, Visakhapatnam for her encouragement
throughout the academic period.
I would like to express my heartfelt thanks to Dr. G. Syamala Rao, Head of the
Department for giving me this opportunity and providing the facilities to the fullest extent as
and when required.
Date:
Visakhapatnam GARUDA GANESH.
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CHAPTER - 1: INTRODUCTION
1.1 INTRODUCTION
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1.1 INTRODUCTION
The project is all about measuring the customer satisfaction in Hero motors. For the past
few years every company is trying to satisfy their customers. The emphasis is on ways of
retaining customers, then on attracting new customers. It is easy to attract new customers
then to retain old customers. So, companies are trying to focus on this aspect of customer’s
satisfaction.
The sale of a product does not end with the sale transaction but it is the point at which the
original marketing concept starts.
The marketer has to see that whether the customer satisfied with that particular
product/service or not. The post purchase behaviour is important for a marketer. If there is
any cognitive dissonance in the minds of the customers then that is enough to lose a
customer.
Keeping this in mind the companies are giving more importance to customer satisfaction.
This project work has been done to find out whether a customer is satisfied or dissatisfied,
also to measure the level of the customer satisfaction and provide this feedback to the
company. The first phase of the project involves the collection of information from the
customers for interpreting the characteristics based on which the customer feels satisfied or
dissatisfied.
The collated information through the questionnaire is analysed and presented in a statistical
form. The findings are listed and suggestions to solve problems faced have been given in
the suggestion part.
INTRODUCTION TO CUSTOMER SATISFACTION:
Whether the buyer is satisfied after purchase depends on the offer’s performance in relation
to the buyer expectation. In general satisfaction are a persons feelings of pleasure or
disappointment resulting from comparing a products perceived performance relation to
his/her expectations. If the performance falls short of expectation, the customer is
dissatisfied.
If it is that easy, then obtaining people's opinion about how satisfied they are with relatively
straight forward matteror is it? Customer satisfaction is a marketing tool and a definite
value-added benefit. It is often perceived by customers as important as the primary product
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or service your organization offers.
It looks at what is involved from 3 different angles, the first is from the view of an
organization wishing to understand, and measures, how satisfied its customer are with the
products and services they receive from it.
The second is from the perspective of a research agency that has been asked to obtain
feedback from customers and about their experiences when dealing with companies.
Finally, it considers the issue from the perspective of consumers who participate in surveys,
including both business customers and members of general public.
The framework suggested that resident who live in tough neighbourhoods can
be supported through customer satisfaction strategies to become empowered
individuals who informed perspectives influence decisions about what, how,
when, and where services are available to them.
DEFINITION:
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Cocotte, woodruff and Jenkins (1987) define customer satisfaction as
"conceptualized as a feeling developed from an evaluation of the experience."
HERE, the timing of satisfaction response is driving consumption. BUT there
is general agreement with kotler (2003) that "customer satisfaction is a
person's feeling of pleasure or disappointment resulting from comparing a
products perceived performance in relation to his or her expectation.
It costs at least 7 times more to source a new customer than it does to retain
existing one a 'satisfied' customer tells 5-7 people in a year whilst a
'dissatisfied' customer will tell 14-15 people. Companies can boost prohts
anywhere from 25% to 125% by retaining a mere 5% more of their exciting
customers. Totally satisfied customers were 6 times more likely to use that
services and commend it than ' satisfied' customers.
Customers who have a bad experience with you and do not complain are only
37% likely to still do business with you. Customers who have an opportunity
to complain and the complaint is achieved are 95% likely to still do business
with you.
Customer satisfaction is a concept that more and more companies are putting
at the heart of their strategy, but for this to be successful, they’re needs to be
clarity about what customer satisfaction means and what needs to happen to
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drive improvement.
If the customer is satisfied by the product it not only rubs the organization
successfully but also fetches many benefits for the company.
CRM as a tool for the management was to create positive word of mouth to
monitor customer experiences and genera to referrals a CRM activities were
implemented with direct regular communication, events and customer
satisfaction surveys, festive offer, five check-ups camps etc.
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FACTORS OF CUSTOMER SATISFACTION:
1. Service of quality
2. Reliability of service
6. The way the service handled any problem Friendliness of staff 7. How
sympathetic staff were to your needs
8. Speed of enquiries
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9. Number of time had to contact the service.
Gone are the days when possessing a two-wheeler was seen as a luxury. Now
days, it is viewed as a mere necessity. Prior, sale of two-wheelers was mainly
coniined to urban areas but lately in rural areas the bicycles are being replaced
by power driven two-wheelers such as scooters, motorcycles. Not only this,
this industry has also customers ranging from all demographic segments. It has
been common sights that even school going children are driving two-wheelers.
The women customers are also increasing due to increase in women literacy
and employment.
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Getting a new customer is difficult, than retaining a current customer is a more
difficult one and not only that it is estimated that the cost of attracting a new
customer is live times the cost of retaining current customer. It requires a great
deal of effort to induce satisfied customer to switch away from their current
preference.
In the present generation the automobile industries are going up very fast than
the any another industries, many companies were coming up with these
automobile industries, in earlier days the car were used by only richer people
only later after purchase the car if any damage may occurred means there is no
chance to repair or modify it, but now a days the concept called after sales
services had been introduced then everyone is ready to purchase the car from
entry level to premium level cars that means there will be a guarantee during
purchase there will a service after purchase.
This study is useful to know about the after sales service offered by every
company this is also leads to customer retention most of the customers will not
make a repeat purchase or continue with the company services in case of a bad
experience with the services.
This study is useful to satisfy the customers when they come for the services
offered by the company.
The research is not exhaustive in nature . Many issues are left out which can
be exploded by other researchers in the future .the study is aimed at finding
answers to the buyer behaviour decisions.
The scope of the project can be best studied with the view of finding the
reasons of how customers take their buying decisions.The project comfort and
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other demographic factors understanding this would enable Hero Motocorp
Ltd to position its products suitably by segmenting the market.This project
would also help Hero Motocorp Ltd . as to howto differentiate its products in
the already crowded two wheeler industry.
This project believes that marketing function does not end once the product is
sold but the true strength of the marketing organisation is tested once the
products is being used. This project main aim is to test the post purchase
behaviour of the customers and their level of Customer Satisfaction.
> The research helps to rectify the defaults done by the Management.
METHODOLOGY
The information required for this study obtained was basically through two
sources.
1.Primary data
2.Secondary data
Primary Data:
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Questionnaire:
Secondary Data:
Unstructured interview
The interview complemented the primary research tool and helped deliver into
details of responses provided by the customers. This not only validated the
responses of the customers but also helped the interviewer understand the
expectations of the customers.
Sampling Unit: In this study the sampling unit used is the existing customer
base of Hero MotocorpLtd . Selection is made from the list of Customers
during the last one year. Sampling Size: Sample size was chosen to be 100.
Sampling Procedure:
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LIMITATIONS
1. The areas which were selected were limited only to Visakhapatnam i.e., the
findings are regional and do not represent the state or country.
3. Since the study involved in gathering information was from upper to higher-
middle class people, interaction with them became difficult.
5. Even though utmost bike has been taken in conducting the survey, the
fmdings may sometimes differ from the population.
7. The split happened 1 year before, the study not giving the long run result of Hero
Motors Bikes
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CHAPTER - 2
COMPANY PROFILE
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2.1 HISTORY OF COMPANY
MILESTONES
1983
Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan
signed.
Shareholders Agreement signed.
1984
Hero Honda Motors Ltd. Incorporated.
1985
First motorcycle 'CD 100' rolled out.
1987
100,000th motorcycle produced.
1989
New motorcycle model - 'Sleek' introduced.
1991
New motorcycle model - 'CD 100 SS' introduced.
500,000th motorcycle produced.
1992
Raman Munjal Vidya Mandir inaugurated -A School in the
memory of founder Managing Director, Mr. Raman Kant Munjal.
1994
New motorcycle model - 'Splendor' introduced.
1,000,000th motorcycle produced.
1997
New motorcycle model - 'Street' introduced.
Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated.
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1998
2,000,000th motorcycle produced.
1999
New motorcycle model - 'CBZ' introduced.
Environment Management System of Dharuhera Plant certified
with ISO-14001 by DNV Holland.
Raman Munjal Memorial Hospital inaugurated - A Hospital in the
memory of founder Managing Director, Mr. Raman Kant Munjal.
2000
4,000,000th motorcycle produced.
Environment Management System of Gurgaon Plant certified ISO-
14001 by DNV Holland.
Splendor declared 'World No. 1' - largest selling single two-
wheeler model.
'Hero Honda Passport Programme' - CRM Programme launched.
2001
New motorcycle model - 'Passion' introduced.
One million production in one single year .
New motorcycle model - 'Joy' introduced.
5,000,000th motorcycle produced.
2002
Becomes the first Indian Company to cross the cumulative 7
million sales mark .
Splendor has emerged as the World's largest selling model for the
third calendar year in a row(2000, 2001, 2002).
New motorcycle model - 'CD Dawn' introduced, New motorcycle
model - 'Splendor +'introduced, New motorcycle model - 'Passion
Plus' introduced, New motorcycle model -'Karizma' introduced.
2004
New motorcycle model - 'Ambition 135' introduced.
Hero Honda became the World No. 1 Company for the third
consecutive year.
Crossed sales of over 2 million units in a single year, a global
record.
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Splendor - World's largest selling motorcycle crossed the 5 million
mark .
New motorcycle model - 'CBZ' introduced.
Joint Technical Agreement renewed.
Total sales crossed a record of 10 million motorcycles.
2005
Hero Honda is the World No. 1 for the 4th year in a row.
New motorcycle model - 'Super Splendor' introduced, New
motorcycle model - 'CD Deluxe' introduced New motorcycle
model - 'Glamour' introduced, New motorcycle model - 'Achiever'
introduced.
First Scooter model from Hero Honda - 'Pleasure' introduced.
2006
Hero Honda is the World No. 1 for the 5th year in a row.
15 million production milestone achieved.
2007
Hero Honda is the World No. 1 for the 6th year in a row.
New 'Splendor NXG' launched.
New 'CD Deluxe' launched.
New 'Passion Plus' launched.
New motorcycle model 'Hunk' launched.
20 million production milestone achieved.
2008
Hero Honda Haridwar Plant inauguration.
New 'Pleasure' launched.
Splendor NXG launched with power start feature.
New motorcycle model 'Passion Pro' launched.
New 'CBZ Xtreme' launched.
25 million production milestone achieved.
CD Deluxe launched with power start feature.
New 'Glamour' launched.
New 'Glamour Fi' launched.
2009
Hero Honda GoodLife Program launched Hunk' (Limited Edition)
launched.
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Splendor completed 11 million production landmark .
New motorcycle model 'Karizma - ZMR' launched.
Silver jubilee celebrations.
2010
New model Splendor Pro launched.
Launch of new Super Splendor and New Hunk.
2011
New licensing arrangement signed between Hero and Honda.
Launch of new refreshed versions of Glamour, Glamour FI, CBZ
Xtreme, Karizma.
Crosses the landmark figure of 5 million cumulative sales in a
single year .
July 29, 2011 - Hero Honda Motors changed its name to Hero
MotoCorp following the exit of its erstwhile Japanese promoter,
Honda, from the company.
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2.2 COMPANY PROFILE
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two – wheelers,based in India.
In 2001, the Company achieved the coveted position of being the largest
two-wheeler manufacturing Company in India and also, the ‘World No.1’ two-
wheeler Company in terms of unit volume sales in a calendar year. Hero
MotoCorp Ltd. continues to maintain this position till date.
Vision
The story began with a simple vision – the vision of a mobile and an
empowered India, powered by its bikes. Hero MotoCorp Ltd., company’s new
identity, reflects its commitment towards providing world class mobility
solutions with renewed focus on expanding company’s footprint in the global
arena.
Mission
Strategy
Hero MotoCorp’s key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
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operational efficiency, aggressively expand its reach to customers, continue to
invest in brand building activities and ensure customer and shareholder delight.
Manufacturing
Technology
Products
Hero Honda's product range includes variety of motorcycles that have set the
industry standards across all the market segments. The Company also started
manufacturing scooter in 2005. Hero Honda offers large no. of products and
caters to wide variety of requirements across all the segments.
Distribution
The Company’s growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
MotoCorp’s extensive sales and service network now spans over to 5000
customer touch points. These comprise a mix of authorized dealerships, Service
& Spare Parts outlets, and dealer-appointed outlets across the country.
Brand
The new Hero is rising and is poised to shine on the global arena. Company’s
new identity “Hero MotoCorp Ltd.” Is truly reflective of its vision to
strengthen focus on mobility and technology and creating global footprint.
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Building and promoting new brand identity will be central to all its initiatives,
utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground- level activation.
2010-11 Performance
Total unit sales of 54, 02,444 two-wheelers, (growth of 17.44 per cent)
Total net operating income of Rs. 19,401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1,927.90 Crores
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs.
70 per share on face value of each
Share of Rs. 2 each
EBIDTA margin for the year 13.49 percent EPS of Rs. 96.54
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2.3 BOARD OF DIRECTORS
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2.4 PRODUCT OF HERO HONDA MOTORCYCLE
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2.5 PRODUCT PROFILE
PRICE LIST(02.05.2012)
MODEL NAME EX. RTO/INS ACC. G.LIFE EXWTY R. OF
SHOW TTL
SPLENDOR PRO KIK SPK 44858 4450 900 250 550 51010
SPLENDOR PRO KIK CAST 45882 4500 900 250 550 52080
SPLENDOR PRO SELF SPK 46905 4550 900 250 550 53160
SPLENDOR PRO SELF CAST 47929 4600 900 250 550 54230
SPL NXG KIK SPOKE 42914 4300 900 250 550 48910
SPL NXG KIK CAST 44449 4400 900 250 550 50550
SPL NXG S.W – SELF 45677 4500 900 250 550 51880
SPL NXG C.W. SELF 46701 4550 900 250 550 52950
GLAMOUR C.W. – SELF DISK 55477 5400 900 250 570 62600
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SUPER SPLENDOR CW NEW 51613 4900 900 250 570 58240
CBZ XTREEM (REAR DISK) 70341 6500 350 250 570 78010
HUNK SELF (NEW) (fr /disk) 66095 5900 350 250 570 73160
HUNK SELF(NEW)(fr & redisc) 69166 6150 350 250 570 76490
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Heavy Grey, Hi Granite Blue, Cloud Silver, Palace Maroon
GLAMOUR PGM Fi Black With Sport Red, Candy Blazing Red, Shield Bold Metallic
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CBZ XTREME Sport Red, Digital Silver, Max Brown Metallic, Flaming Orange,
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Panther Black Metallic
Hunk Panther Black, Ebony Grey, Force Silver, Bold Brown, Marine
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Green, Sports Red, Blazing Red
KARIZMA Power Black, Ebony Grey, Daring Yellow, Spotlight White, Sport
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Red
KARIZMA ZMR Panther Black Metallic, Vibrant Orange, Blazing Red, Spotlight
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White
IMPULSE Grassland Green, Deep Sea Blue, Terra Rossa, Canyon Orange
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2.7 GOOD LIFE PROGRAMME
DEPARTMENT :-
1. Sales
2.Spares
3.Services (pre delivery inspection, good life, extended warranty)
2.8 COMPETITORS
1. BAJAJ
2. HONDA
3. TVS
4. SUZUKI
5. YAMHA
6. ROYAL ENFIELD
7. MAHINDRA
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8. KINATIC
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2.9 DEALER’S ORGANIZATION STRUCTURE
OWNER
incharge
Delivery bike
Mechanics Helper Wash boy
P.D.I. Incharge
Account Manager
Delivery Mechanics
incharge
boy
Cashier Bill Booking Executive
Parts supplier
Finance Executive
Sales P.D.I. Incharge
Executive
R.T.o. Service
insInsurance Adviser
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INDUSTRY PROFILE
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1.1 AUTOMOBILE INDUSTRY : AN OVERVIEW
The automobile industry, along with the auto components industry, is
one of the core industries in India. A well developed transportation system
plays a key role in the development of an economy, and India is no exception
to it. Automobile is one of the largest industries in the global market. Owing to
its strong forward and backward linkages with several key segments of the
economy. Automobile Sector occupies a prominent place in the fabric of
Indian Economy. Automobile sector is leader in product and process
technologies in the manufacturing sector. It has been recognized as one of the
drivers of economic growth and the domestic automobile industry is believed to
be the barometer of the economy. Such a belief is in line with international
trends since in most mature economies the automobile industry’s performance
is viewed as a reflection of the economy’s health. This sector has emerged as
sunrise sector in the Indian economy.
According to data published by Department of Industrial Policy and
Promotion (DIPP), ministry of Commerce, the amount of cumulative foreign
direct investment (FDI) inflow into the auto sector from April 2000 to
November 2012 was worth US$7,518 million. The auto sector accounts for 4
per cent of the total FDI Inflows (in terms of US $) in India. According to the
recent data released by Society of Indian Automobiles Manufacturers (SIAM)
India’s scooter and motorcycle manufacturers have registered 4 per cent
growth during April-November, 2012. The Global and Indian manufacturers
are focusing their efforts to develop innovative products, technologies and
supply chains. India is one of the key markets for Global Manufacturers for
hybrid and electronic vehicles, which is the new development in automobile
sector. With a turnover of almost $59 Million US Dollars, Automobile industry
Provides employment to 13 million people in the India Work-class.
The automobiles sector is divided into four segments - two-wheelers,
passenger vehicles, commercial vehicles and three wheelers. Two wheelers
India is one of the world’s fastest growing passenger car markets it is second
largest two wheeler manufacturer and fifth largest commercial vehicle
manufacturer. It is also home for the largest motor cycle manufacturer.
Moreover, India is fourth largest passenger car market in Asia.
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The auto sector in India has achieved a growth rate of 26% in last two years
(2010-12). However, it has shown a sluggish growth of 12 percent in 2012. The
trend is likely to stay with a 10 percent growth outlined for 2013. The main
reason are high ownership costs (fuel costs, cost of registration, excise duty,
road tax) and slow rural income growth. Over the next few Years solid but
cautious growth is expected.
The Macquarie equities research reveals that the sale of passenger vehicles is
expected to double in the next four years and growth anticipated is higher than
the 16% achieved in the past 10 years. The automotive Mission Plan 2016
launched by the Government of India seeks to grow the industry to a size of
$145 billion by 2016 and make it contribute 10 per cent to the nation’ GDP.
The growth for automotive industry is important for growth in economy,
particularly because the automotive industry has strong multiplier effect. It is
capable if being the driver if economic growth. High direct to indirect
employment ratio of about 1:10 Is estimated for the automobile industry,
because automobile industry has potential to generate employment for about 10
more for every person employed directly in automobile manufacturing
industry. These indirect employments includes employments in ancillary and
component industries, automobile service stations mechanics, loaders and
cleaners of commercial vehicles, institutions financing purchase of vehicles and
people who drive commercial vehicles and hired vehicles. There is a symbiotic
relationship between the growth of economy and the demand for vehicles.
In the past few years, the production and management systems in the India
automobiles industry have been revolutionaries. The fast growth of
automobiles industry is due to the convergence of a lot of positive factors.
These factors have resulted in the introduction of new models. Following are
some of the important growth drivers:
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of Industrial Policy and Promotion (DIPP), USS 644 million FDI was received
in the sector construction activities (including roads and highways) during
April-September 2012-13. The vast development of road infrastructure has mad
road transport both in the case of passenger traffic and goods transport a viable,
cost effective and speedy option of transportation.
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alternative fuels will be an area of interest for both consumers and auto makers.
The Manufacturer is India are investing in R&D to adapt manufacturing of
vehicles to changing customer preferences in order to provide answer to global
challenges and for the continued success of the automobile industry.
National Automotive Testing and R&D infrastructure Project (NATRIP)
has been set up in Rae Bareilly, Ahmednagar, Pune, Manesar, Silchar, Indore
and Chennai for Strengthening the R&D infrastructure.
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(8) Favorable Government policies:
Government plays a key role in creating an enabling and conducive
environment for any industry. The Government of India has always been keen
to support the Automotive Industry in India. The first such initiative by the
Government was delicensing introduce in July, 1991. Subsequent opening of
100% FDI under automotive route in this sector including passenger car
segment has paved way to tremendous growth of automobile sector. The new
automobile policy attracted a large number of automobile companies in India.
The foreign investors, perception has change. A large number of multinational
auto companies are entering the Indian auto market. They are working in
collaboration with the Indian firms. Today every global player ha either set ip
or in the process of setting up unit in India and the number of manufacturing
facilities in India has grown progressively.
The Indian Auto Policy of 2002, introduced measures like low entry
barriers and investment incentives by the local state governments. To
encourage in-house research and development activities. Government has
introduce policies that allow weighted tac deduction up to 150%.
To further improve the automobiles in the Indian domestic market, to provide
world class facilities of automotive testing and certification and to ensure a
healthy competition among the manufactures at a level playing field,
Government has laid down road map in the form of ‘Automotive Mission Plan
2006-2016’. The objective of this mission plan is to accelerate and sustain
growth in the automotive sector to make India a Global Automotive Hub.
Exemption in custom and excise duty is of vital importance for the
growth for Indian Automobile Industry. India signed a Free Trade Agreement
(FTA) with Thailand in 2004 abolishing duties in 82 items under and Early
Harvest Scheme (EHS). This Agreement became operational in January, 2010.
Under the terms of agreement 82 early harvest items, which include a range of
auto components, are subject to zero duty when imported from Thailand into
India.
(9) Car buyers getting younger:
India is one of the youngest countries in the worked with a median age of
almost 26 years. This is much lower than the World’s biggest economies. This
means that the work class constitutes majorly of young individuals. The care
buying age has declined from 39 in the year 2000 to 33 in 2010. With the
increase in per capita income, increase in middle and working class individuals,
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easier availability of finance coupled with other factors, this with further
decline in the coming years.
(10) Rising per capita GDP:
the per capita GDP of India increased from 1200 USD in 2011 to almost 1330
USD in 2012. This is further expected cress the 2000 mark by 2015. The
purchasing power will increase, which will result in increase in demand of
automobile industry in India.
1.2 HISTORY OF AUTOMOBILE INDUSTRY
The history of automobile industry is more than four centuries old the first
invention of automobile industry was as early as in 1769. A French Engineer,
Nicolasan J. Cugnot invented the first self-powered, three-wheeled, military
tractor that made the use of a steam engine. The range of the automobile
however was very brief. These automobiles were driven by steam engines,
which made them very heavy and large. Besides, this the engine required ample
starting time. Thereafter, in the U.S. Oliver Evans designed a steam engine
driven automobile. Then came the era of electric carriage. A Scotsman, Robert
Anderson, invented an electric carriage between 1832 and 1839 first. In 1842
Thomas Davenport of the U.S.A and Scotsman Robert Davidson invented more
applicable automobiles, making use of non-rechargeable electric batteries. Col.
Rookes Crompton introduced public transport wagons strapped to and pulled
by imported steam road rollers called steamers. The maximum speed of these
buses was 33 kms/hr. The first theoretical plans for a motor vehicle were drawn
by Leonardo da Vinci and Isaac Newton. History of Automobile Industry
reveals that US dominated the automobile markets around the globe. There
Were no notable competitors at that time. After Second World War in 1945 the
Automobile Industry of other technologically advanced nation such as Japan
and certain European nation gained momentum. The U.S. Automobile Industry
was flooded with foreign automobile companies, especially Japan Germany
within a very short period beginning early 1980s.
The history of automobile industry in India is also quite old. Simpson & Co
established in 1840 were the first to build a steam car and a steam bus in India.
The first car ran on India’s roads in 1898 in Bombay. Ager the end of the
World War a large number of military vehicles come on the roads in India in
1919. American General Motors, a wholly owned Indian subsidiary of started
assembly of CKD
Trucks and Cares in 1928 In Bombay. Canadian Ford Motors started assembly
of cars in 1930-31 in Madras, Bombay and Calcutta. In 1942 Hindustan Motors
Lt was incorporated. Hindustan Motors produced its first vehicle in 1950. In
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1944 premier Automobiles Ltd incorporated. The first vehicle was produced by
it in 1947. Thereafter, in 1947 Bajaj started assembly of Auto in its scheme of
replacing cycle rickshaw by auto under a license from Piaggio. After
independence, the Government if India and the private sector launched efforts
to create and automotive component manufacturing industry to supply to the
automobile industry. Due to nationalization and the license raj, the growth was
relatively slow in the 1950s and 1960s. This hampered the Indian private
sector. After 1970, the automotive industry stared to grow. However, the
growth was mainly driven by tractors, commercial vehicles and scooter. Cars
were still a major luxury. Till the early eighties, the automobile industry had
very slow growth. Until 1982, there were only three manufacturers who had
complete sway in the sector. They were, Hindustan Motors, Premier
Automobiles and Standard Motors. The way of perform started in the early
nineteen eighties with a slew of bold policy initiatives. The Government
allowed foreign technology with or without equity participation with Indian
companies. During This period in Car Segment, Suzuki (Japan) made entry in
the field of vehicles in India. In two wheeler segment following companies
made entry:
Suzuki, Honda, Kawasaki, Yamaha – all from Japan, Honda, Piaggio (Italy)
Scooters : Steyr Daimler Puch (austria), Zundapp (Germany)
Mopeds : Agrati Garelli (Italy)
In 1982 Maruti Udyog Limited (MUL) came up as a Government
initiative in collaboration with Suzuki of Japan to establish volume production
of contemporary models.
The fruits of first wave of initiatives were consolidated and then in early 1990s
another tranche of reforms was made by Government allowed which paved
way to develop the automobile sector further. Major reforms initiated were:
(i) De-licensing of automobiles and automobile components.
(ii) Automobiles and automobile components, were among these industries
who were Identified as ‘high priority’. Foreign equity participation in
these companies were allowed upto 51%.
(iii) Procedures for approval of foreign collaboration involving technology
transfer were simplified for both with or without equity
participation.
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(iv) Custom duty at that time was at its peak, which was as high as 110%.
This was reduced to 65% ad valorem.
(v) Full convertibility of rupee on current account was allowed.
(vi) The condition of a ‘phased manufacturing programme’ for
indigenization before allowing imports was withdrawn.
The Indian automotive industry has demonstrated sustained growth as
result of these reforms on various dimensions, like a variety of choices for the
customer, modernity of offerings, quality consciousness or even scale of
production, many India companies have equaled, if not surpassed, global
standards. Several Indian automobile manufacturers such as Tata Motors,
Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and
international operations. India’s robust economic growth led to the further
expansion of its domestics automobile market which has attracted significant
India-specific investment by multinational automobiles manufacturers. Thus
the dong away of licensing in 90s saw further growth and expansion in the
automobile sector in India. This is when 17 new ventures came up, out of
which 16 were for manufacture of cars. There are at present 12 manufacturers
of passenger cars, 5 manufacturers of MUVs, 9 manufacturers of commercial
vehicles, 12 manufacturers of two-wheelers, 4 manufacturers of three wheelers
and 14 manufacturers of tractors, besides 5 manufacturers of engines.
1.3 PRESENT SCENARIO OF AUTOMOBILE INDUSTRY
Real growth journey of automobile industry started in 1991 by the
announcement of New Industrial Policy delicensing of Automobile industry by
Govt. Of India. The New Industrial Policy of 1991 provided that except in
some special cases industrial license is not required for setting I of automobile
manufacturing unit. Progressive liberalization was made by Govt. Of India in
he norms for Foreign Investment and import of technology. This was done with
a view to make the automobile industry globally competitive. Continuous
economic liberalization since 1991 witnessed a rapid growth of automobile
industry in India, thereby making India as one of the sought after destination by
global automotive players. Due to continuous growth of the industry in India,
the automobile sector has been aptly described as the sunrise sectors of the
Indian economy. Due to relaxed restrictions, positive support by Government
and increased competitiveness, the Indian automobile industry has
demonstrated sustained growth in last two decades. Tata Motors, Maruti
Suzuki, and Mahindra and Mahindra, are among those several automobile
manufacturers who have expanded their domestic and international operations.
43
Continuous rapid growth of automobile industry resulted in further expansion
of domestic automobile market. This rapid expansion attracted investment by
multinational automobile manufacturers in India. Hyundai, Suzuki, General
Motors and other foreign automobile players.
Have set up their base and India is emerging as a strong automotive
R&D hub. Owing to Government support of liberalization policy combined
with entrepreneurial skills and managerial talent that the industry has, India has
come a long way. Today, this sector is one of the shining examples of what can
be achieved in a relatively short span of time. The past ten years have
witnessed a six fold increase in the industry and the automotive exports
growing by almost twenty times. Starting from Tata’s small car Tata Nano’s
successful entry in India Automobile Sector, Indian market has steamed up the
opportunities of growth available in alternative segments like electric cars,
natural gas run vehicles etc. During April 2000 to November 2012 total
cumulative FDI inflow in Automobile Industry in India was worth US$7,518
million, as per data published by Department of Industrial Policy and
Promotion (DIPP), Ministry of Commerce. India’s scooter and motorcycle
manufacturers have registered 4 per cent growth during April-November 2012,
according to the recent data release by the Society of Indian Automobile
Manufacturers (SIAM). Moreover, the passenger vehicles segment grew at 9.71
per cent during April-June 2012, while overall commercial vehicles segment
registered an expansion of 6.06 per cent year-on-year(yo-y). According to a
report titled, “Strategic Assessment of Small and Light Commercial Vehicles in
India’ by Forst & Sullivan, the Indian small and light commercial vehicle
segment is expected to more than double by 2015-16 and to grow at 18.5 per
cent compound annual growth rate (CAGR) for the next five years. The
automobile industry in India has become one of the largest manufacturing
sectors all over the World. However, there has been a sudden spurt in the
Indian Automobile Industry, especially since last two years. The automobile
industry has posted double digits growth in India during these two years.
The automotive Industry in India is now working in terms of the dynamics of
an open market. Number of Multinational Companies are now operating in
India. They are operating either as wholly owned subsidiaries of in
collaboration with their Indian partners. The automobile sector has been
benefitted by liberalization of Indian economy to a large extent. The
automobile manufacturers in India have made available various international
brands for Indian consumers. Taking advantage of favorable Government
policies, locally available efficient and cost competitive manpower, modern
technology, firms like Hyundai Motors are supplying cars in the International
44
market using its manufacturing facility in India. A large number if joint
ventures have been set up both in automobile industry and auto-component
sector. All this has become possible because of the Government of India’s
keenness to provide a suitable economic and business environment. In the last
two decades, the contribution of automotive sector is prominent in the growth
of Indian Economy. The contribution of automobile industry in the growth of
economy is in financial as well as quality terms. In financial terms, it is in
terms of revenues, profits, taxes and employment. In quality terms it is in terms
of quality processes, efficiency improvements, and product innovation.
As of now, india is the seventh largest vehicle manufacturer, second largest
two wheeler manufacturer and the fifth largest commercial vehicle
manufacturer in the world. Following are some of the facts which witness the
India’s position in the World’s automobile production:
• Indian auto ancillary industry is well developed and globally
competitive. Established automobile testing and R&D centers are set
up in various parts of
the country.
• India is among one of the lowest cost producers of steel.
• As of now, India is World, second largest manufacturers of two
wheelers, fifth largest commercial vehicle manufacturer and seventh
largest vehicle manufacturer in the world.
According to the President and Managing Director of Ford India, Mr. Joginder
Singh, India is expected to become the third largest automobile market in the
world. According to Tomas Ernberg, Managing Director, Volvo Auto India, by
2020 the luxury car segment is estimated to be around three per cent of the
overall passenger car market in India and there is huge opportunity for growth.
India is the largest base to export compact car to Europe.
Major investments are made by almost every major car maker – Ford. PSA
& Maruti. They have set up new plan in Gujarat. Tata’s and Mahindra’s are
launching the new models based on global platforms. Government has line up
some challenges in Automotive Mission Plan (AMP) 2006-2016. Sharp
increase in demand has greatly benefitted the automobile industry. It has also
added extra capacity, better R&D facilities and technological advancement
across the country.
45
The production of automobiles has greatly increased in the last decades. It is
evidence from the production figures given if Fig./Table-1.1 below that
Automobile Industry passed the 1 million mark during 2003-04 and has more
than double since then. The growth rate barring 2007-08 and 2008-09 (due to
recession in USA and Europe) from 2001-02 to 2011-12 ranges between
13.80% and 27.2% over its preceding year.
46
following comparison. The increase in passenger vehicles in 2011-12 over
2001-02 is 466%.
47
Automobile Production Trend ( Number Of Vehicles)
Category 2001-02 2011-12
The Gross turnover of automobile industry as given in Figure 1.2/Table 1.2 will
reveal the growth of automobile industry in India has been unbeaten.
Chart 1.2/ Table 1.2: Gross Turnover of the Automobile Industry in India:
Automobile Industry in India is growing at a very high rate. Barring 2007-08
and 2008-09 when the growth rate over preceding year is negligible or in
negative due to recession in USA and Europe, there is increasing trend over
preceding year sales in all other years since 2001-02. The growth rate ranges
between 12.24% and 26.44% over its preceding year sales. Table 1.3 below
gives the domestic sales trend India:
48
Category 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011-
02 03 04 05 06 07 08 09 10 11 12
Passenger 67511 70719 90209 10615 11430 137997 15498 15527 195133 250154 261807
Vehicales 6 8 6 72 76 9 82 03 3 4 2
Commercial 14667 19068 26011 31843 35104 467765 49049 38419 532721 684905 809532
Vehicles 1 2 4 0 1 4 4
Three Wheelers 20027 23152 28407 30786 35992 403910 36478 34972 440392 526024 513251
6 9 8 2 0 1 7
Two Wheelers 42307 48121 53642 62097 70523 787233 72492 74376 937095 117689 134357
25 26 49 65 91 4 78 19 1 10 69
Grand Total 52527 59415 68105 78976 89064 101239 96544 97242 122953 154813 173766
88 35 37 29 28 88 35 43 97 83 24
Growth % age 13.112 14.626 15.962 12.773 13.671 -4.638 0.723 26.441 25.912 12.242
49
Category 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Passenger 50088 70828 129291 166402 175572 198452 218401 335729 446145 444326 507318
Vehicales
Commercial 11870 12255 17432 29940 40600 49537 58994 42625 45009 74043 92663
Vehicles
Three 15462 43366 68144 66795 76881 143896 141225 148066 173214 269968 362876
Wheelers
Two 104183 179682 265052 366407 513169 619644 819713 1004174 1140058 1531619 1947198
Wheelers
Grand Total 181603 306131 479919 629544 806222 1011529 1238333 1530594 1804426 2319956 2910055
Growth % age 68.572 56.769 31.177 28.064 25.465 22.422 23.601 17.891 28.57 25.436
50
Daewoo Daewoo (Korea) 1995
Now more and more foreign manufacturers are coming to India and existing
companies are coming up with new models. India’s automotive industry is now
$34 billion worth and expected to grow $145 in another 10 years.
Presently following is the segment-wisee position of market share in
Automobile Industry:
Domestic Market Share for 2011-12
Passenger Vehicles
In the passenger vehicle segment market share of Maruti Udyog is 52%.
Hyundai Motor’s share is 19%. Share of Tata motors is 16%. Other players in
this segment are Honda Siel cars and Ford India Pvt. Ltd. Thus Maruti Udyog
is still leader in passenger vehicle segment in automobile industry.
Utility Vehicles
The leader in utility vehicles segment with market share of 42% is Mahindra
and Mahindra. It is followed by Toyota Kirlosker and Tata Motors. Other
utility vehicle manufacturers are Maruti Udyog, General Motors and Hyundai
India.
51
Medium and heavy Commercial Vehicles
In this segment Tata Motors is leader with 61%market share. It is followed by
Ashok Leyland, Eicher Motos and Swaraj Mazda.
Light Commercial Vehicles
With 46% share in the market, Tata Motors leads the passenger carriers
segment. It is followed by Mahindra and Mahindra, Swaraj Mazda and Force
Motors. In good carriers segment also with 58% shares Tata Motors is the
leader. Other players in this segment are Mahindra and Mahindra, Swaraj
Mazda and Force Motors.
Presently following segment the Segmentwise major automobile players in
India:
Table 1.5: Segmentwise major automobile players in India
Companies Segments Companies Segments
Ashok Leyland LCVs, M&HCVS, Kinetic Motor Two wheeler
buses
Asian Motor Works M & HCVs Mahindra & Mahindra Three wheeler, cars MUVs,
LCVs
Bajaj Auto Two and three wheelers Maruti Suzuki Cars, MUVs, MPVs
BMW India Cars & MUVs Piaggio Three wheelers
Daimler Chrysler Cars Royal Enfield Motors Two wheelers
Eicher Motors LCVs, M & HCVs Skoda Auto India Cars
Fiat India Cars Suzuki Motorcycles Two wheelers
Force Motors MUVs & LCVs Swaraj Mazda Ltd. LCVs,M&HCVS, buses
Ford India Cars & MUVs Tata Motors Cars MUVs,LCVs,M&HCVS,buses
General Motors India Cars & MUVs Toyota Kirloskar Cars & MUVs
Hero Honda India Two wheelers TVS Motors Co. Two wheeler
Hindustan Motors Cars, MUVs & LCVs Volvo India M&HCVs, buses
Honda Two wheelers, Cars & Volkswagen India Cars
MUVs
Hyundai Motors Cars & MUVs Yamaha Motors Ltd. Two wheelers
Exports
During April-March 2012, the industry exported 2,910,055 automobiles registering a growth of
25.44 percent. Passenger Vehicles registered growth at 14.18 percent in this period. Commercial
Vehicles, Three Wheelers and Two Wheelers segments recorded growth of 25.15 percent, 34.41
percent and 27.13 percent respectively during April-March 2012. For the first time in history car
exports crossed half a million in a financial year.
In March 2012 compared to March 2011, overall automobile exports registered a growth of
17.81 percent.
52
Table 1.6 Automobile Exports Trends
(Number of Vehicles)
Automobile Exports Trends (Number of Vehicles)
54
government’s effort would, therefore, be to meet the huge future market
potential that exists in the auto component sector from indigenous industry and
not through imports. Clearly, this is an area where the government would like
to work more closely with the industry to reverse the trend.
The impressive numbers for the possible future size of the Indian auto
components industry represents high potential; however, huge challenges will
need to be overcome if the Indian auto component industry is to realize this
Potential. The automobile industry is expected to witness strong growth
through 2020. As per the automotive Group for the 12th Five year plan, the
growth expectations are as follows:
(1) Projection of passenger Vehicles as 5 million units in 2015 and by about
9 million units by 2020. This is essentially by growth in Indian market and
expectations of India as global hub for export of small cars;
(2) The commercial Vehicles to touch volumes of over 1.4 million by 2015
and over 2.2 million units by 2020.
(3) Two and Three wheelers expected to double to 22 million units by 2015
and reach 30 million units by 2020.
In order to realize the 2020 vision, the Indian auto component industry
will need to build and optimize their capacities, focus on continuous
improvement. This will be possible by absorbing advance technologies,
adopting latest manufacturing processes, building R&D competencies,
including and promoting organization culture of innovation. Not only this, it
will need to continually strive to improve quality, cost and delivery standards to
global benchmarks. Further, as the industry move toward an era of shortened
product life cycles and faster roll out of newer models and variants, it will be
imperative for the Indian auto component industry to graduate from the present
“build to design” capabilities to developing “product design, testing and
validation” capabilities. Also availability of capital at reasonable cost,
availability of skilled manpower, stable long term government policies,
protection of the interests of the domestic auto industry in the various bilateral
free trade negotiation are some of the most critical areas where government
support is essential.
The automotive Industry in India shall continue to grow at a very fast
pace in the foreseeable future. This confidence is base on strong sector
fundamentals which include extremely low current levels of vehicle penetration
in the country, projected high rate of GDP growth for the Indian
55
Economy, huge investments being made by the Government in
infrastructure along with a very large upwardly mobile middle class population
with aspirations for better living standards. These factors will ensure that the
demand for personal mobility in India will continue to remain very high.
Recent studies project the size of the Indian passenger vehicle segment
annually to be close to 9 million units and the two wheeler production to be
close to 30 million units by 2020.
According to a report from United Nation Industrial Development
Organization’s (UNIDO) in ‘International Yearbook of industrial Statistics
2008’, India enjoys 12th Position amongst top 15 automakers in the world. India
is at the 4th position amongst auto makers of developing countries. By 2016 the
size of the Indian automobile industry is expected to grow by 13%, to reach a
market of US$ 120-159 billion. Presently, India is the 2nd largest two wheeler
market in the word and fourth largest commercial vehicle market worldwide.
With allies in a strong economy, rising demand and financial banking, Indian
auto industry is standing at the threshold of success.
Finally to conclude the Indian automobile market seems to be the
strongest growing market among all those automobile market present across the
globe at present. The important factors for steady and rapid growth of
automobile sector in India includes, Foreign Direct Investment (FDI) in
Automobile Industry (to complement), purchasing powder capacity,
Government support and auto-finance facility on liberal terms. However,
Vision 2020 – requires more capital investment, increase in installed capacity,
technology improvements, trained manpower, increase in international market
share for export and increasing the organized sector (from the present
unorganized) in ACMA (OEM’s) with it’s capacity to cater to the requirements
of the automobile manufacturers in all segments. The challenges, if tackled
well by the Government, the Indian Automobile Industry will achieve the said
Amp 2016 and will be the third largest market by 2020 and will be the world’s
largest market by 2050.
1.5 CONCLUSION
Automobile industry plays a vital role in the fabric of Indian economy.
This sector of industry has made a rapid & steady growth in India, particularly
after 90s due to delicensing, favorable Government policy and whole hearted
support of the Government, opening up of the automobile industries for 100%
FDI, increase in purchasing power capacity of middle class and easy and cheap
auto-finance facility.
56
Chapter – III
THEORITICAL FRAME WORK
57
Marketing
Definition:
In simple words “Marketing is human activity directed at satisfying needs and wants
Importance of Marketing:
> Satisfies Human Wants: Marketing plays an important role in the satisfaction of human
wants by maintaining regular supply of goods to consumers. It provides better life and
welfare to people by satisfying their wants and also by providing useful goods and services
which can make their
> Widens markets: Marketing facilitates widening of markets through large scale
movement of goods throughout the country. Even advertising and sales promotion
techniques are useful for widening markets. They provide convenience to consumers and
profit to traders.
> Improves the standard of living of the society: Continuous production improves the skill
of the workers. In addition, marketing process provides new varieties of quality goods to
customers. It facilitates production as per the needs of consumers and supplies such
production to consumers. This raises the standard of living of the people. It is the
58
marketing which has converted "Yesterday's luxuries into today's necessaries”.
> Facilitates stability to marketing firm: Marketing is one major revenue generating source
of a firm. It raises the turnover and profit of a business unit. A firm's survival, growth and
stability are dependent on its ability to market the products efficiently. Marketing is thus
one challenging function of management.
Marketing mix
Definition:
Marketing mix is master mix of product, place, price and promotion mix.
The Marketing mix is a set of four decisions which need to be taken before launching any
new product. These variables are also known as the 4 P’s of marketing. These
four variables help the firm in making strategic decisions necessary for the smooth running
of any product / organization. These variables are
Product
Price
Place
Promotion
Product:
Products can be of two types Tangible Product and Intangible Product (Services)
An individual can see, touch and feel tangible products as compared to intangible
products.
A product in a market place is something which a seller sells to the buyers in exchange of
money.
Price:
The money which a buyer pays for a product is called as price of the product. The price of
59
a product is indirectly proportional to its availability in the market. Lesser its availability,
more would be its price and vice a versa.
Retail stores which stock unique products (not available at any other store) Quote a higher
price from the buyers.
Place:
Place refers to the location where the products are available and can be sold or
purchased. Buyers can purchase products either from physical markets or from virtual
markets. In a physical market, buyers and sellers can physically meet and interact with
each other whereas in a virtual market buyers and sellers meet through intemet.
Promotion:
Promotion refers to the various strategies and ideas implemented by the marketers to
make the end users aware of their brand. Promotion includes various techniques
employed to promote and make a brand popular amongst the masses.
ADVERTISING:
Advertisement is the one of the activity element in the promotion. It is very common term
known to the man in the street. It hgures in everybody’s life every day. We see it in the
newspaper, in the magazines, in the sky, on the vehicles, on television, on online, even on
matchbox and so on.
The word advertising is derived from a latin word “advertere”, which means to turn
attention towards specific things. The simplest meaning of advertisement is that it is a
“public announcement”.
HISTORY OF ADVERTISING:
Advertising started in Egypt about one thousand years before Christ. It was taken up by
the Greeks and Romans. Greeks used the advertising and publicity for the politics. At that
time the Greeks used various methods for the publicity. Similarly, there are evidences to
suggest that Romans practiced advertising. Publicity was made in the form of cries of
vendors in the streets and announcement by drummers, though its nope was limited.
DEVELOPMENT OF ADVERTISING:
The advertising posters were started at the end of 15'h century when the hand Dress was
invested. Another important development at this time was emergence “Pamphlets as an
advertising medium. Later the mass advertising was stared on the half of 19‘" century .In
short, the development of advertising was ‘Cceierated on account of the fallowing factors.
The industrial production led to mass production on account of use of machines and
necessitated the need of advertising for selling the same.
60
3. Increasing in literacy was also responsible for the development of advertising. With the
increase in the literacy rate, the number of newspapers and magazines increased They
bike message about new product to consumers.
4. The advertisement and advertising agencies in the beginning of the 20th century gave
impetus to the rapid development of advertising.
5. The current century marked with the advertisement of radios and televisions etc. added
impetus to the rapid growth in advertising. And now one step more, the color transmission
has made advertising more attractive.
6. Today advertising has developed into a very powerful mass media of communication. It
is an industry of multimillion rupees, employing millions of people.
DEFINITIONS OF ADVERTISING:
Advertising has been variously defined by different authors. Some of the widely accepted
definitions of advertising are as follows
1. Advertising is any paid form of non-personal presentation and promotional ideas, goods
and services by an identified sponsor. “American marketing association”
Characteristics of advertising:
7) It bikers the message of the manufacturer or the seller to the target audience for which it
is intended.
10)It is a general term used for any and all types of publicity.
FUNCTIONS OF ADVERTISING:
61
I) To increase the sale of the product or product by securing greater consumption through
attracting new customer and also by introducing new uses of product.
2) To assist the dealers (wholesalers and retailers etc.) to sell the advertised goods
effectively.
3) To persuade the dealers to stock advertised goods in sufficient quantities and there by
persuade the prospect to buy the advertised goods.
4) To remove the obstacles to the sale by overcoming false impression, prejudices. fears
etc by encouraging stable prices.
5) To develop brand preferences by display of the name in such a way that it will be linked
with the satisfaction of wants and association with the ideas of dependability, prestige,
courteous service, price refund and the link.
7) To secure initial attention of the prospective customers through the use of mechanical
devices such as contrast, size, position, arrangements, colour, incentives, sales promotion
techniques and isolation from competing appeals.
10)To raise the standard of living of the customers by instigating them to use newer and
better products at competitive (advertised) prices.
11)To assist the salesmen and boost their morale, increasing sales and facing a difficult
customer.
12)To furnish the requisite information to salesmen, dealers and the customers about the
product or products, the enterprise etc.
14)To assist the enterprise for securing better employees, executives, salesmen, workers
etc.
16)To increase the confidence and morale of the workers by creating a feeling that they
are working in an enterprise of high reputation of good public response. Their job is not
only secured but they also have bright prospect of promotion etc.
OBJECTIVES OF ADVERTISING:
62
services or ideas to a large group of prospective purchasers. The following are the main
objectives of advertising.
Educating the customers and the users: -Another objective of the advertisement is to
educate the customers and the users about the uses and utility of the product. Unless
information reaches the consumers and the users they cannot decide and make good
choice. Building up brand image brand loyalty: -Another important objective is to build-up
brand image and brand loyalty and to make it strong not enough to change the particular
brand.
Informing about the changes to the consumers and the users: Another objective of
advertisement is to inform the consumers and users about the changes as quality,
designs, packing, size, brand. price, weight etc.
Forcing middlemen to handle the product: The object of advertising is also forced the
middlemen to handle a particular product or products only. It is possible when the
consumers and the users approaching middlemen for purchasing the product through
influence of advertisement of that product.
Enhancing goodwill of the firm: -The objective of the advertising is also to enhance the
goodwill and reputation of the firm in the minds of middlemen, consumers and the users.
Performing selling job: The object of advertising is also to perform selling function, e.g., in
mail order business the selling function is performed by advertisement.
Acquaint buyers with new users: The objective of advertising is also to acquaint buyers
and users with the new uses of product.
Assisting salesman’s efforts: The objective advertising is also to assist the salesman’s
efforts in increasing the sales of a product or products. Since the advertisement educates
customers about the product, the function of salesman remain simply to sell the product.
Reduction in production and distribution cost: The objectives of advertising is also to assist
a producer in reducing production and distribution costs. Advertisement helps in increasing
sales and also in informing prospective customers about the product. This causes large-
63
scale production resulting in overall reduction in cost of production and distribution.
Maintenance of Demand: The objective of advertising is not only to increase the demand
but also to maintain the demand of existing product or products.
> Know your prospects before giving advertisement. The advertisement should be made in
accordance to the level of education, living standard, income, culture, needs and social
customs of your prospect.
The advertisement should create interest in the mind of the prospect towards the product.
The advertisement should have attractive and effective headline. It should create
sensation in the mind of the prospect, such as. Advertisement should be easily
understandable.
The prospect should feel pride in having the product, such as, “Lux is the most popular
soap of film stars.”
64
CHAPTER 4
Data Analysis
65
Research Methodology:-
Section A: - Objective
RESEARCH PLAN
CHAPTER – 5
66
1. Do you know about HERO company ?
Percentage
90
80
70
60
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in the above table , where it is observed that 80% of the people are
aware of hero bikes and 20% people are not aware of hero bikes. Based on this data it can
defined that majority of the people are aware of bikes belong to Hero Motocorp Ltd.
67
2 How do you come to know about HERO company ?
Percentage
60
50
40
30
20
10
0
Throught Throught friends and Throught hoarding/ Other medium
advertisements relatives newsapaper
Percentage
Interpretation:
It can be seen in the above table , where the 50% people are aware about hero bikes
Through advertisements, 12% through friends and relatives, % through hoardings / news papers
and 30% through other media like word of mouth, pamphlets, f.m and other sources. If can be finally
called from the above data that majority of the people in Visakhapatnam are aware of Hero
Motocorp.
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3. Rate the attractiveness of the advertisement of Hero ?
Percentage
80
70
60
50
40
30
20
10
0
Very attractive Less attractive Not at all attractive
Percentage
Interpretation:
It can be seen in the above table , that 70% of the people felt that the advertisements
of Hero is very attractive, 20% of the people is less attractive and 10% felt that is not at all
attractive. It can be finally called from the above data that majority of the people in
Visakhapatnam are felt that advertisements of Hero is very attractive and good.
69
4. Rate the quality of bike as per the advertisement of Hero ?
Percentage
45
40
35
30
25
20
15
10
0
Highly satisfactory Satisfactory Average satisfactory Dissatisfactory
Percentage
Interpretation:
It can be seen in the above table , that 24% of the customers are highly satisfied with
advertisements of hero, 20% customers are satisfied, 16% customers are at average
satisfactory, and 40% of the customers are dissatisfied with the quality presented through the
advertisements of Hero. It can be finally called from the above table that the majority of the
people in Visakhapatnam felt that the advertisements of hero is at moderate stage.
70
5. Does the advertisement of Hero attract to purchase bike in Hero ?
Percentage
70
60
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in the above table , where it is observed that 66% of the customers are
attracted to purchase Hero bikes by watching advertisements and 34% customers are not
attracted. It can be finally inferred that the majority of the people in Visakhapatnam are very
much attracted to the advertisements of Hero and there relevantly shows the growth of the
market through promotional activities.
71
6. How do you feel while purchasing bike in HERO?
Percentage
50
45
40
35
30
25
20
15
10
5
0
Good Average Poor
Percentage
Interpretation:
It can be seen in the above table that 44% of the customers felt happy with Hero bikes
and 36% of the customers are dissatisfied and 20% of the customers are at moderate position.
It can be finally inferred that majority of the people in Visakhapatnam felt happy while
purchasing a bike in Hero.
72
7. How do you rate the presentation of bike in showroom ?
Percentage
40
36
35
30
25
20
20
15
10
10
0
Good Average Poor
Percentage
Interpretation:
It can be seen in the above table that 20% of the customers felt that
presentation of bike in showroom is good and 10% of the customers felt average and 70% of
the customers felt poor about the bike presentation in showroom. It can be finally inferred
that majority of the people in Visakhapatnam are felt poor in presenting the bikes in the
showroom and through other sources like campaigns etc.
73
8. How do you rate the maintenance of bike in showroom ?
Percentage
80
70
60
50
40
30
20
10
0
Good Average Poor
Percentage
Interpretation:
It can be seen in the above table that 44% of the customers felt that the
maintenance of bike in showroom is good and neat and 20% of the customers felt average
about the bike maintenance in showroom and 36% of the customers felt poor about the bike
the maintenance in showroom. It can be finally inferred that majority of the people in
Visakhapatnam are felt good in the maintenance of Hero bikes is good in the showroom.
74
9. Is the price of bike can be clearly explained by salesman?
Percentage
100
90
80
70
60
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in the above table. That 90% of the customers said yes that the
salesman are explaining the specification of the bike and 10% of the customers said no that
they were not up to mark in the clearly demonstrating the bike. It can be finally inferred that
majority of the people in Visakhapatnam are having good opinion in the salesman of hero in
demonstrating of the bike.
75
10. Do you think offers are clearly presented through display in Hero company?
Percentage
80
70
60
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in the above table. That 24% of the customers said yes that the
company is clearly presenting their offers through display and 76% of the customers said no
that there is no correct presenting of the offered through display. It can be finally inferred that
majority of the people in Visakhapatnam are felt that there is no clear display of offers.
76
11.How do you rate the range of bikes in HERO?
percentage
70
60
60
50
40
32
30
20
8
10
0
Good Average Poor
Percentage
Interpretation :
It can be seen in the above table 5.11 that 60% of the customers are good for
the range of bikes and Hero and 8% of the customers rate that it is average and
32% of the customers rate that range of bikes is poor. It can be finally inferred
in that majority of the people in Visakhapatnam are felt that range of bikes of
Hero is good and satisfactory.
77
12.Does the display and promotional offers informed in the company
attract you?
percentage
60
50 50
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in above table 5.12 that half of the customers like 50% of
customers are attracted by display and promotional offers presenting in the
showroom where other 50% of the people are not attracted by these activites. It
can be finally inferred that the people in the Visakhapatnam are in neutral state
of mind in choosing the Hero bikes.
78
13.Which type of promotional activities attract customer?
percentage
80
70
70
60
50
40
30 24
20 16
10
0
Discount Extra offer Advertisement
Percentage
Interpretation:
It can be seen in above table 5.13 that 70% of the customers are attracted
towards hero bikes in discount and 24% of customers are attracted through extra
offers and 16% of the customers attracted through advertisement. It can be
finally inferred that the majority of people in the Visakhapatnam are mostly
attracted for discount type of promotional activity.
79
14.Does sales promotion activities of HERO made to visit again?
percentage
70
62
60
50
50
40
30
20
10
0
Yes No
Percentage
Interpretation:
It can be seen in above table that 62% of the customers said yes that sales
promotional activities of HERO made a attracted them to visit again and the
remaining 38% of the people said no that they were not much attracted on the
sales promotional activities. It can be finally inferred that majority of people in
Visakhapatnam are felt good in sales promotional activities.
80
15.Your overall experience in Hero purchase in bike?
percentage
50
44
45
40 36
35 32
30
25
20
15
10
4
5
0
Excellent Good Average Poor
Percentage
Interpretation :
It can be seen in the above table 5.11 that 60% of the customers are good for
the range of bikes and Hero and 8% of the customers rate that it is average and
32% of the customers rate that range of bikes is poor. It can be finally inferred
in that majority of the people in Visakhapatnam are felt that range of bikes of
Hero is good and satisfactory.
81
CHAPTER – 5
SUMMARY
FINDINGS
SUGGESTIONS
CONCLUSION
82
Visakhapatnam RATNA HERO MOTOCORP is a successful service-oriented
Franchise Undertaking organization whose main operation is to provide the best
serviced bikes for customers through its efficient operations and also due to the
advantage of being in the market where there is a huge competition. It is in a
position to earn satisfactory returns. The objective and policies of a private sector
enterprise are different from any public sector organization. The Private Enterprise
has to meet the requirements has maintained by different related private sectors.
So, arriving at a conclusion and going suggestions regarding performance of such
an organization is a very sensitive activity. I have given some suggestions keeping
in a view of certain important aspects and also by analyzing the Sales and
Promotion of RATNA HERO MOTOCORP sales and Promotion is one of the
important parts of a Retail Store. It ensures proper liquidity to the organization to
meet its short-term obligations. The Sales and Promotion is to manage the Sales of
the vehicles in such a way that is satisfactory level of sales is maintained. Sales
and Promotion includes planning of inventory control, sales and financial
management of cash.
As seen from the Sales the position of the organization is very good.
83
Majority of the people 80% are aware of Hero bikes.
Majority of the people 50% are aware about Hero bikes through advertisements.
Majority of the people 70% felt that the advertisement of Hero is very attractive.
40% of the customers are dissatisfied with the quality of bikes as per the
advertisement of HERO.
Majority of the customers 68% are not attracted to purchase a bike by watching
advertisements.
Half of the people are felt happy while purchasing Hero Company.
Majority of the customers 70% rate poor for the presentation of bike in showroom.
44% of customer’s rate good for the maintenance of bike in showroom.
90% of customers agree that salesman explain clearly regarding price of the bike.
76% of customers are opined that Hero Company is not presenting offers clearly
through display.
Majority of the customers 60% rate to for the range of bikes in Hero.
It is found that half of the customers are attracted through promotional offers of
Hero Company.
70% of the customers are attracted to purchase Hero bike because of the discounts
provided by Hero.
Majority of the customers 62% agree that sales promotion activities of Hero made
them to visit again.
44% of the customers are satisfied with over all experience with Hero bikes.
84
SUGGESTIONS
The RATNA HERO MOTOCORP is both product and service oriented organization.
They have to take bike of their Promotion.
4) It have to take more bike of customer receiving and analyzing their taste about
bike before only
6) It should develop the other facilities for knowing about the company.
9) More than half of the people rate more about the presentation of bike in
showroom. So it should be maintained.
10) It should maintain offers clearly presented through displayed in Hero are not
satisfied so it should be developed.
85
CONCLUSION
Apart from that Hero MotoCorp Ltd focused on cleanliness and other aesthetics of
the service stations and add such air-conditioned waiting area, internet surfing,
coffee shops etc. to enhance the in-house experience of the customers at those -
customer touch point.
To ensure that millions of customers in the rural area are not left waiting for
adequate service as it is impossible for the company to introduce service station at
every nook and corner of the country, mobile service stations are regularly
arranged with prior intimation to public about the rout that the mobile workshop
would take when passing through that region so that customers can come and get
their two wheelers serviced.
86
BIBLOGRAPHY
BOOKS:
Journals:
1. Business India
WEBSITES:
WWW.HEROMOTOCORP.COM
www.Ibef.org
Wikipedia
87
QUESTIONNARE
A) Yes B) No
2. How do you come to know about HERO company?
A) Through advertisements B) Through friends and relatives
C) Through hoarding/ newspaper D) Other medium
A) Yes B) NO
A) Yes B) NO
10. Do you think offers are clearly presented through display in Hero company?
A) Yes B) NO
12. Does the display and promotional offers informed in the company attract
you?
88
A) Yes B) NO
89