CHAPTER-1

INTRODUCTION

0
INTRODUCTION:
General Introduction:
The demand for two- wheelers in India is dependent upon factors like availability of
finance, increase in income levels, and restricted growth in public transportation and movement in
petrol prices. Expect petrol prices, all other factors have positive correlation affects the demand for
two-wheelers, due to the increase in the running cost of a vehicle.
Two-wheelers are distinguished on different factors for different consumer segment. For
example high- powered two- wheelers have a niche market as racing / sporting vehicles and have a
special appeal to youngsters. Teenagers and women prefer easy maneuverability / handing ease.
Fuel efficiency and low maintenance lure urbanities. The lower end of the market looks for
durability, value for money and higher resale value.
The motorcycle is being increasingly used youngsters / bachelors in urban areas and by rural
folk as a study means of personal transportation. Bigger wheels, better road grip, higher ground
clearance, power, fuel efficiency, low maintenance cost are the major attraction of this segment.
Over the past few years, the two- wheelers market has witnessed a major shift from scooter
to motorbikes.
However, the young boys, who want to assert themselves in their friend circle and want to
make a statement about their young personality, are purchasing high- powered bikes.
The middle class youth especially those in marketing and jobs are mostly buying Moto
Corp. In fact, the young couples and bachelors are going for bikes for their good average and
speed. Youngsters feel that it helps make good impression on girls when you have motorcycles.
The market experts admit that it is the lean period for sale of bikes as well as scooters.
They say that the sales usually pick up at the end of financial year or during festival season, when
the companies offer some discounts or freebies. Despite increasing heat of the competition, the
Moto Corp is still trying to hold the 100cc market through splendor and passion models.
The dealers say that the Moto Corp bikes are more preferred by educated urban youth and
executives to the rural ties, where the financiers are not ready to risks due to in fluttering and
difficulty to calculate agriculture incomes.
The customer says that the manufactures would have to share the profits with
consumers instead of just relying on advertising campaign. The entry of Chinese bikes, which
could force them to cut down prices, may have been stalled by higher duties for time being, but it
cannot be postponed forever. They would have come up with more fuel efficient and cheap models
that still determining factors to boost sales.

1
 Style and economy offered by the motorcycles manufacturing companies are what has given
a fillip to the motorbike segment. With this, the market today is witnessing the entry of a large
number of innovative models, the latest ones being karizmas (230cc 4 stroke) by Moto Corp,
cruiser Thunderbird (350cc 4 stroke) by Royal Enfield, pulsar (150cc 4 stroke) by bajaj and various
others.
According to Mr. Manjot Gill, sales in charge, TVS, “today, the motorcycles market is
dynamic and demand for change has compelled the manufacturers to do constant research and
development of new models with sleekers looks and features to meet the expectations of the
buyers”. It is primarily those between age groups of 16 years and 40 years who form the major user
segment for motorbikes. Preferences differ – a majority voting for looks.
Moto Corp which claims 47 percent of the market share has two best sellers – splendor the
four stroke bike (100cc) and CBZ (156cc) that have captured the market for quite long, once again
due to looks and fuel economy. Other popular bikes by the company are passion a hot favorite
because of the style, look and fuel economy it offers says Brij Inder Singh, sales manager, Moto
Corp, “despite the price differentials between motorcycles and scooters not being too high, having
a motorcycle gives one the feeling of up gradation”. He also attributes the growth of this segment to
the initiatives being taken by the companies including more introductions in the economy class
bikes and easy financing facilities.
Users share similar views. Akshaye bannerjee who is passionate about motorbikes thinks
that while for students it is primarily looks which matter, once gets experienced, the importance of
control, acceleration and long ride comfort – in nut shell power and to an extent looks are equally
important. “The bikes you own is a reflection of your personality” he says.
NEED FOR THE STUDY:
Customers consider various factors for purchasing a motorcycle. The factors they consider
are based on certain demographic variables such as income, age, occupation etc. it also depends on
attributes and lifestyle of the customer buying behavior becomes essential to get a competitive
edge.
OBJECTIVE OF THE STUDY:
Main objective: The main objective of the study is to study the buying motives of the
customers regarding two wheelers.
1. To know the influence of demographic factors on consumer buying behavior of Moto
Corp.
2. To know the brand performance of Moto Corp on consumers.
3. To know the buying motives of purchasing Moto Corp.

2
REASERCH METHODOLOGY:

Research Design:

The research design used for this project is exploratory and descriptive. The exploratory research
was conducted using secondary data.The descriptive research was conducted through personal
interviews with respondent using questionnaire.

Secondary Data:

Secondary data are those, which are collected from existing data. Secondary data for this
study include appropriate material from newspaper, Magazines, Brouchers, Company Reports,
Standard Text Books, and information from Internet has also been acquired wherever necessary.
Primary Data:
Primary data are those, which are collected fresh and for the first time and this happen to be
original in character. In this study primary data was collected through conducting interview using
questionnaire.
Sampling Design:
A research design is a logical and systematic plan prepared for directing a research study it
specifies the methodology and technique to be adopted for achieving the objectives. It constitutes
the blueprint for the collection, measurement and analysis of data.The main aim of the study is to
evaluate the brand image of Moto Corp. The study is descriptive in nature. Surveys are best-suited
method for descriptive research. So survey method is used for the study.
The preparation of a research plan for a study aids in establishing direction to the study and
knowing exactly what has to be done and how and when it has to be done at every stage.
A research plan describes the boundaries of research activities and enables the research to
channel his energies in the right work. With clear research objectives, in view the research can
proceed systematically towards his achievements.

Sampling Procedures:
Sampling is a systematic approach for selecting a few elements from an entire collection of
units (population) in order to make some inference about the total population it is a small specimen
or a segment of the whole population representing its general qualities as for as possible. The study
was undertaken by convenience sampling.

3
 Convenience sampling is a non-profitability sampling. T means selecting sample units in
just hit and miss fashion i.e., interviewing people whom you happen to meet.

Sampling Unit:
The survey is conducted using two wheelers only.
Sampling Frame:
The population for the study consists of Moto Corp bike owners in the cities of Hyderabad
and secundrabad.
Sampling Size:
The study is conducted on a sample of 100 respondents.

DATA COLLECTION INSTRUMENTS:

The instrument used for this study is an interview schedule. Questions related to objectives
of the study from the major portion of the interview schedule. It mainly consists of multiple-choice
questions so that the respondents can mark one or more of the several choice of answers.
Secondary data has been gathered from many published sources such as Newspapers, Journals,
Magazines, Company Reports, standard textbooks and information from Internet has also been
acquired wherever necessary.
FIELD WORK:
The project involved a fieldwork of around 1 month where in the survey was carried out of
around NXG 40, CBZ-10, PASSION PRO 20, super splendor20, Glamour10.
The survey was conducted in different of Hyderabad and secunderabad such as
Tarnaka, oldbowenpally, Ameerpet, Picket.

LIMITATIONS:
a) The Research was conducted in this of Hyderabad and secundrabad.

b) The sample size limited to 100.

c) The views and purpose of respondent may change on the period of time.

d) The Duration of project serve limited to 45 days.

4
 CHAPTER-2

LITERATURE REVIEW

5
CUSTOMER GETTING SMARTER

A competitor, in order to achieve the loyalty of the customers, offer an endless information
flow on the products and services and thereby continuously educates the customer about the
opportunities in the market. Therefore today even an ordinary person, is in possession of the large
amount of data to use for the purpose of making a decision as to which products/ services he would
go in for. The competitive environment is making the customer wisher day by day and he is able to
take a large number of decisions on his own. The experts’ advice of the olden days is being
replaced by the customer’s own wisdom. This is making the market place more complicated and
unpredictable. The customer is getting smarter today and he is able to decide his own money’s
worth and therefore, organization across the board are `pursuing the customer’s views to streamline
their business strategies to remain customer- worthy.

People are the prime factor for any organization to maintain the effectiveness and thus
develop the right focus for the people, so that each one perceives as clearly as possible his position
in the cycle of growth and prosperity of the organization. Agendas will have to be drawn in such a
manner and communicated so effectively that the individual is able to enjoy a meaningful life in the
organization, endowed with authority and responsibility for the role he plays.

“One should be able to see for oneself the impact of the contributions one has made towards
the growth and prosperity cycle of the organization. As a matter of fact the relationship between the
people and the organization should be so designed that each one is here to experience the pleasure
of winning and pain of losing. People alone are of no significance unless and until they have an
intimate and continuous interaction with the process”.

Therefore organization have to take continuous care to update their quality of the people and
that of processes simultaneously so that a healthy relationship is built up and maintained making the
relationship happy and healthy one. This, when done, should generate in people a sense of
entrepreneurship ownership of the organization.

6
 “Since the customer are the main focus of any organization its structure should be so flat
i.e., people fluently interact with the customer and maintain continuous feedback about the
customer’s moods and methods in order to shape its business portfolio and strategies”.

It is very important to find whether the fundamentals of the organization are getting strong
as desired. It is therefore rightly said that a well trained army with quality arms and ammunitions
and with a sense of involvement can got the nations frontiers inn desirable and dependable manner
similarly: people at the operation level with superior competency and capability supplied with
superior products and strategies can acquire a place for an organization in the market place. Retail
outlets are the contact points of the customers and therefore the image of the organization largely
depends upon the quality of the people managing the interventions and transactions at the level.

The Consumer Market:

The consume market consists of all the individuals and households who buy or acquire
goods and services for personal consumption. The simplest model consumer buyer behavior is the
stimulus – response model. According to this model marketing stimuli ( the four Ps) and the major
forces (economic, technological, political, cultural) enter the consumer’s “black box” and reproduce
certain responses.

Consumers Buyer Behavior:

Consumer buyer behavior is influenced by four keys sets of buyer characteristics; cultural,
social, personal, and psychological. Although many of these factors cannot be influenced by the
marketer, they can be useful in identifying interested buyers and in shaping products and appeals to
severe consumer needs better. Culture3 is the most basic determinant of a person’s wants and
behavior. It includes the basic values, perceptions, preference, and behavior \s that a person learns
from family and other important instructions. Subcultures are “cultures within cultures” that have a
distinct values and lifestyles and can be based on anything from age to ethnicity. People with
different culture and sub culture characteristics have different product and brand preferences. As a
result, marketers may want to faces their marketing programs on the special needs of certain
groups.

Social factors influence buyer’s behavior. A person’s reference group-family, friends, social
organizations, professional associations- strongly affect product and brand choices. The buyer’s
age, life-cycle stage, occupation, economic circumstances, lifestyle, personality, and other personal.
7
Characteristics influence his or her buying decisions. Consumer life-styles the pattern of acting and
interacting in the world are also an important influences on purchase decisions.

Finally, consumer-buying behavior is influenced by four major psychological factors-

motivation, perception, learning, and beliefs and attitudes. Each of these factors provides a
different perspective for understanding the workings of the buyer’s black box.

MODEL OF CONSUMER BEHAVIOR

CONSUMER PERCEPTION

It can be defined as the process by which an individual selects, organizes, and interprets stimuli
into a meaningful and coherent picture of the world. A stimulus is a unit of input to any of the
senses. Examples of stimulus ie, sensory input include products, packages, brand names,
advertisements, and commercials, sensory receptor.
Marketers do not want their target audience to look only at the models in their ads. They want
to communicate something about their products as well. Marketers often use attractive
models,humour, other factors to attract the target market’s interest. Information processing is a
series of activities by which stimuli are perceived, transformed in to information, and stored.
Information processing model has four major steps or stages,

a. Exposurre d. Memory
b. Attention

c. Interpretation
8
9
The first three constitute perception.
Exposure occurs when a stimulus such as an Advertisement hoarding comes within
the range of a person’s vision. Attention occurs when the information from vision pass on to
the brain for processing. Interpretation is the assignment of meaning to the received
sensations. Memory is the short term use of the meaning for immediate decision making or
the longer term retention of the meaning.

The basic components shown in the figure can be arranged into four groups:

1. Stimuli, which serve as the raw material to be processed.

The stages of processing activities, which are linked by arrows and mainly internal to the
customer. Situational and consumer characteristics which can influence the nature of these
processing activities, and an executive system, which guides the process by regulating the
type and intensity of processing activities engaged in, at any time.

CONCEPT OF PERCEPTION
Perception is a result of a process consisting of the following points:

a. Primitive categorization:
The basic characteristics of a stimulus are isolated by the person to form his perception.
For eg., anything shining, may be seen with an amount of suspicion by the consumers. This
is knows as primitive categorization.
b. Cue Check:
Cue characteristics are analyzed by the person in preparation for the selection of a scheme.

c. Confirmation Check:

A confirmation check is run by the person to see the validity of the scheme chosen.

d. Confirmation Completion

It’s a stage where a perception is formed by the consumer o any person for that matter
and decision is made.

Consumer Buying Behavior

Possibly the most challenging concept in marketing deals with understanding why
buyers do what they do (or don’t do). But such knowledge is critical for marketers since
having a strong understanding of buyer behavior will help shed light on what is important to
the customer and also suggest the important influences on customer decision-making. Using
this information, marketers can create marketing programs that they believe will be of interest
to customers.

As you might guess, factors affecting how customers make decisions are extremely
complex. Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in
just to make things more interesting. Since every person in the world is different, it is
impossible to have simple rules that explain how buying decisions are made. But those who
have spent many years analyzing customer activity have presented us with useful
“guidelines” in how someone decides whether or not to make a purchase.
 In fact, pick up any textbook that examines customer behavior and each seems to
approach it from a different angle. The perspective we take is to touch on just the basic
concepts that appear to be commonly accepted as influencing customer behavior. We will
devote two sections of the Principles of Marketing Tutorials to customer behavior. In this
section we will examine the buying behavior of consumers (i.e., when people buy for
personal reasons) while in the Business Buying Behavior tutorial we will examine factors that
influence buyer’s decisions in the business market.

Why Consumers Buy

As we discussed in the What is Marketing? tutorial, customers make purchases in

order to satisfy needs. Some of these needs are basic and must be filled by everyone on the
planet (e.g., food, shelter) while others are not required for basic survival and vary depending
on the person. It probably makes more sense to classify needs that are not a necessity as
wants or desires. In fact, in many countries where the standard of living is very high, a large
portion of the population’s income is spent on wants and desires rather than on basic needs.

In this tutorial when we mention the consumer we are referring to the actual buyer,
the person spending the money. But is should also be pointed out that the one who does the
buying is not necessarily the user of what is bought and that others may be involved in the
buying decision in addition to the actual buyer. While the purchasing process in the consumer
market is not as complex as the business market, having multiple people involved in a
purchase decision is not unusual. For example, in planning for a family vacation the mother
may make the hotel reservations but others in the family may have input on the hotel choice.
Similarly, a father may purchase snacks at the grocery store but his young child may be the
one who selected it from the store shelf.

So understanding consumer purchase behavior involves not only understanding how

decisions are made but also understanding the dynamics that influence purchases.
What Influences Purchasing

As we discussed the decision-making process for consumers is anything but straight

forward. There are many factors that can affect this process as a person works through the
purchase decision. The number of potential influences on consumer behavior is limitless.
However, marketers are well served to understand the KEY influences. By doing so they may
be in a position to tailor their marketing efforts to take advantage of these influences in a way
that will satisfy the consumer and the marketer (remember this is a key part of the definition
of marketing).

For the purposes of this tutorial we will break these influences down into three main
categories: Internal, External and Marketing. However, those interested in learning more
about customer buying activity may want to consult one or more consumer behavior books
where they will find additional methods for explaining consumer buying behavior.

For the most part the influences are not mutually exclusive. Instead, they are all
interconnected and, as we will see, work together to form who we are and how we behave.
 For each of the influences that are discussed we will provide a basic description and
also suggest its implication to marketers. Bear in mind we only provide a few marketing
implications for each influence; clearly there are many more.

Internal Influences: Perceptual Filter

We start our examination of the influences on consumer purchase decisions by first

looking inside ourselves to see which are the most important internal factors that affect how
we make choices.

Perceptual Filter

Perception is how we see ourselves and the world we live in. However, what ends up
being stored inside us doesn’t always get there in a direct manner. Often our mental makeup
results from information that has been consciously or subconsciously filtered as we
experience it, a process we refer to as a perceptual filter. To us this is our reality, though it
does not mean it is an accurate reflection on what is real. Thus, perception is the way we filter
stimuli (e.g., someone talking to us, reading a newspaper story) and then make sense out of it.

Perception has several steps.

 Exposure – sensing a stimuli (e.g. seeing an ad)

 Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)
 Awareness – assigning meaning to a stimuli (e.g., humorous ad for particular product)
 Retention – adding the meaning to one’s internal makeup (i.e., product has fun ads)

How these steps are eventually carried out depends on a person’s approach to learning.
By learning we mean how someone changes what they know, which in turn may affect how
they act. There are many theories of learning, a discussion of which is beyond the scope of
this tutorial, however, suffice to say that people are likely to learn in different ways. For
instance, one person may be able to focus very strongly on a certain advertisement and be
able to retain the information after being exposed only one time while another person may
need to be exposed to the same advertisement many times before he/she even recognizes
what it is.
 Consumers are also more likely to retain information if a person has a strong interest in
the stimuli. If a person is in need of new car they are more likely to pay attention to a new
advertisement for a car while someone who does not need a car may need to see the
advertisement many times before they recognize the brand of automobile.

Marketing Implications:

Marketers spend large sums of money in an attempt to get customers to have a positive
impression of their products. But clearly the existence of a perceptual filter suggests that
getting to this stage is not easy. Exposing consumers to a product can be very challenging
considering the amount of competing product messages (ads) that are also trying to
accomplish the same objective (i.e., advertising clutter). So marketers must be creative and
use various means to deliver their message. Once the message reaches consumer it must be
interesting enough to capture their attention (e.g., talk about the product’s benefits). But
attending to the message is not enough. For marketers the most critical step is the one that
occurs with awareness. Here marketers must continually monitor and respond if their
message becomes distorted in ways that will negatively shape its meaning. This can often
happen due in part to competitive activity (e.g., comparison advertisements). Finally, getting
the consumer to give positive meaning to the message they have retained requires the
marketer make sure that consumers accurately interpret the facts about the product.

Internal Influences: Knowledge

Knowledge is the sum of all information known by a person. It is the facts of the
world as he/she knows it and the depth of knowledge is a function of the breadth of worldly
experiences and the strength of an individual’s long-term memory. Obviously what exists as
knowledge to an individual depends on how an individual’s perceptual filter makes sense of
the information it is exposed to.
Marketing Implications:

Marketers may conduct research that will gauge consumers’ level of knowledge regarding
their product. As we will see below, it is likely that other factors influencing consumer
behavior are in large part shaped by what is known about a product. Thus, developing
methods (e.g., incentives) to encourage consumers to accept more information (or correct
information) may affect other influencing factors.

Internal Influences: Attitude

In simple terms attitude refers to what a person feels or believes about something.
Additionally, attitude may be reflected in how an individual acts based on his or her beliefs.
Once formed, attitudes can be very difficult to change. Thus, if a consumer has a negative
attitude toward a particular issue it will take considerable effort to change what they believe
to be true.

Marketing Implications:

Marketers facing consumers who have a negative attitude toward their product must work to
identify the key issues shaping a consumer’s attitude then adjust marketing decisions (e.g.,
advertising) in an effort to change the attitude. For companies competing against strong rivals
to whom loyal consumers exhibit a positive attitude, an important strategy is to work to see
why consumers feel positive toward the competitor and then try to meet or beat the
competitor on these issues. Alternatively, a company can try to locate customers who feel
negatively toward the competitor and then increase awareness among this group.

Internal Influences: Personality

An individual’s personality relates to perceived personal characteristics that are consistently

exhibited, especially when one acts in the presence of others. In most, but not all, cases the
behaviors one projects in a situation is similar to the behaviors a person exhibits in another
situation. In this way personality is the sum of sensory experiences others get from
experiencing a person (i.e., how one talks, reacts). While one’s personality is often interpreted
by those we interact with, the person has their own vision of their personality, called Self
Concept, which may or may not be the same has how others view us.
Marketing Implications:

For marketers it is important to know that consumers make purchase decisions to support
their self concept. Using research techniques to identify how customers view themselves may
give marketers insight into products and promotion options that are not readily apparent. For
example, when examining consumers a marketer may initially build marketing strategy
around more obvious clues to consumption behavior, such as consumer’s demographic
indicators (e.g., age, occupation, income). However, in-depth research may yield information
that shows consumers are purchasing products to fulfill self-concept objectives that have little
to do with the demographic category they fall into (e.g., senior citizen may be making
purchases that make them feel younger). Appealing to the consumer’s self concept needs
could expand the market to which the product is targeted.

Internal Influences: Lifestyle

This influencing factor relates to the way we live through the activities we engage in
and interests we express. In simple terms it is what we value out of life. Lifestyle is often
determined by how we spend our time and money.

Marketing Implications:

Products and services are purchased to support consumers’ lifestyles. Marketers have worked
hard researching how consumers in their target markets live their lives since this information
is key to developing products, suggesting promotional strategies and even determining how
best to distribute products. The fact that lifestyle is so directly tied to marketing activity will
be further examined as we discuss developing target market strategies (See Targeting
Markets) tutoria
Internal Influences: Motivation:Motivation relates to our desire to achieve a certain
outcome. Many internal factors we have already discussed can affect a
customer’s desire to achieve a certain outcome but there are others. For instance,
when it comes to making purchase decisions customers’ motivation could be
affected by such issues as financial position (e.g., Can I afford the purchase?),
time constraints (e.g., Do I need to make the purchase quickly?), overall value
(e.g., Am I getting my money’s worth?), and perceived risk (e.g., What
happens if I make a bad decision?).

Marketing Implications:

Motivation is also closely tied to the concept of Involvement, which relates to how much
effort the consumer will exert in making a decision. Highly motivated consumers will want to
get mentally and physically involved in the purchase process. Not all products have a high
percentage of highly involved customers (e.g., milk) but marketers who market products and
services that may lead to high level of consumer involvement should prepare options that will
be attractive to this group. For instance, marketers should make it easy for consumers to learn
about their product (e.g., information on website, free video preview) and, for some products,
allow customers to experience the product (e.g., free trial) before committing to the purchase

Internal Influences: Roles

Roles represent the position we feel we hold or others feel we should hold when
dealing in a group environment. These positions carry certain responsibilities yet it is
important to understand that some of these responsibilities may, in fact, be perceived and not
spelled out or even accepted by others. In support of their roles, consumers will make product
choices that may vary depending on which role they are assuming. As illustration, a person
who is responsible for selecting snack food for an office party his boss will attend may
choose higher quality products than he would choose when selecting snacks for his family.

Marketing Implications:

Advertisers often show how the benefits of their products aid consumers as they perform
certain roles. Typically the underlying message of this promotional approach is to suggest
that using the advertiser’s product will help raise one’s status in the eyes of others while using
a competitor’s product may have a negative effect on status.

External Influences: Culture

Consumer purchasing decisions are often affected by factors that are outside of their
control but have direct or indirect impact on how we live and what we consume. One
example of this are cultural factors

Culture represents the behavior, beliefs and, in many cases, the way we act learned by
interacting or observing other members of society. In this way much of what we do is shared
behavior, passed along from one member of society to another. Yet culture is a broad concept
that, while of interest to marketers, is not nearly as important as understanding what occurs
within smaller groups or Sub-Cultures to which we may also belong. Sub-cultures also have
shared values but this occurs within smaller groups. For instance, sub-cultures exist where
groups share similar values in terms of ethnicity, religious beliefs, geographic location,
special interests and many others.

Marketing Implications:

As part of their efforts to convince customers to purchase their products, marketers often use
cultural representations, especially in promotional appeals. The objective is to connect to
consumers using cultural references that are easily understood and often embraced by the
consumer. By doing so the marketer hopes the consumer feels more comfortable with or can
relate better to the product since it corresponds with their cultural values. Additionally, smart
marketers use strong research efforts in an attempt to identify differences in how sub-culture
behaves. These efforts help pave the way for spotting trends within a sub-culture, which the
marketer can capitalize on through new marketing tactics (e.g., new products, new sales
channels, added value, etc.).

External Influences: Group Membership

In addition to cultural influences, consumers belong to many other groups with which
they share certain characteristics and which may influence purchase decisions. Often these
groups contain Opinion Leaders or others who have major influence on what the customer
purchases.
 Some of the basic groups we may belong to include:

 Social Class – represents the social standing one has within a society based on such
factors as income level, education, occupation
 Family – one’s family situation can have a strong effect on how purchase decisions
are made
 Reference groups – most consumers simultaneously belong to many other groups with
which they associate or, in some cases, feel the need to disassociate

Marketing Implications:

Identifying and understanding the groups consumers belong to is a key strategy for marketers.
Doing so helps identify target markets, develop new products, and create appealing marketing
promotions to which consumers can relate. In particular, marketers seek to locate group
leaders and others to whom members of the group look for advice or direction. These opinion
leaders, if well respected by the group, can be used to gain insight into group behavior and if
these opinion leaders accept promotional opportunities could act as effective spokespeople
for the marketer’s products.

External Influences: Purchase Situation

Purchase Situation

A purchase decision can be strongly affected by the situation in which people find
themselves. In general, a situation is the circumstances a person faces when making a
purchase decision, such as the nature of their physical environment, their emotional state, or
time constraints. Not all situations are controllable, in which case a consumer may not follow
their normal process for making a purchase decision. For instance, if a person needs a product
quickly and a store does not carry the brand they normally purchase, the customer may
choose a competitor’s product.
Marketing Implications:

Marketers can take advantage of decisions made in uncontrollable situations in at least two
ways. First, marketers can use promotional methods to reinforce a specific selection of
products when the consumer is confronted with a particular situation. For example,
automotive services can be purchased that promise to service vehicles if the user runs into
problems anywhere and at anytime. Second, marketers can use marketing methods that
attempt to convince consumers that a situation is less likely to occur if the marketer’s product
is used. This can also be seen with auto products, where marketers explain that using their
product will prevent unexpected damage to their vehicles.

Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions nearly every day. But not all decisions are
treated the same. Some decisions are more complex than others and thus require more effort
by the consumer. Other decisions are fairly routine and require little effort. In general,
consumers face four types of purchase decisions:

 Minor New Purchase – these purchases represent something new to a consumer but in
the customer’s mind is not a very important purchase in terms of need, money or other
reason (e.g., status within a group).
 Minor Re-Purchase – these are the most routine of all purchases and often the
consumer returns to purchase the same product without giving much thought to other
product options (i.e., consumer is brand loyalty).
 Major New Purchase – these purchases are the most difficult of all purchases because
the product being purchased is important to the consumer but the consumer has little
or no previous experience making these decisions. The consumer’s lack of confidence
in making this type of decision often (but not always) requires the consumer to engage
in an extensive decision-making process..
 Major Re-Purchase - these purchase decisions are also important to the consumer but
the consumer feels confident in making these decisions since they have previous
experience purchasing the product.
 For marketers it is important to understand how consumers treat the purchase decisions
they face. If a company is targeting customers who feel a purchase decision is difficult (i.e.,
Major New Purchase), their marketing strategy may vary greatly from a company targeting
customers who view the purchase decision as routine. In fact, the same company may face
both situations at the same time; for some the product is new, while other customers see the
purchase as routine. The implication of buying behavior for marketers is that different buying
situations require different marketing efforts.

How Consumers Buy

So now that we have discussed the factors influencing a consumer’s decision to

purchase, let’s examine the process itself. This process is presented in a sequence of 5 steps
as shown below.

However, whether a consumer will actually carryout each step depends on the type of
purchase decision that is faced. For instance, for minor re-purchases the consumer may be
quite loyal to the same brand, thus the decision is a routine one (i.e., buy the same product)
and little effort is involved in making a purchase decision. In cases of routine, brand loyal
purchases consumers may skip several steps in the purchasing process since they know
exactly what they want allowing the consumer to move quickly through the steps. But for
more complex decisions, such as Major New Purchases, the purchasing process can extend
for days, weeks, months or longer. So in presenting these steps marketers should realize that,
depending on the circumstances surrounding the purchase, the importance of each step may
vary.

Purchase Decision Steps 1 and 2

1. Need/Want/Desire is Recognized

In the first step the consumer has determined that for some reason he/she is not
satisfied (i.e., consumer’s perceived actual condition) and wants to improve his/her situation
(i.e., consumer’s perceived desired condition). For instance, internal triggers, such as hunger
or thirst, may tell the consumer that food or drink is needed. External factors can also trigger
consumer’s needs. Marketers are particularly good at this through advertising, in-store
displays and even the intentional use of scent (e.g., perfume counters). At this stage the
decision-making process may stall if the consumer is not motivated to continue (see
Motivation above). However, if the consumer does have the internal drive to satisfy the need
they will continue to the next step.

2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they will next undertake
a search for information on possible solutions. The sources used to acquire this information
may be as simple as remembering information from past experience (i.e., memory) or the
consumer may expend considerable effort to locate information from outside sources (e.g.,
Internet search, talk with others, etc.). How much effort the consumer directs toward
searching depends on such factors as: the importance of satisfying the need, familiarity with
available solutions, and the amount of time available to search. To appeal to consumers who
are at the search stage, marketers should make efforts to ensure consumers can locate
information related to their product. For example, for marketers whose customers rely on the
Internet for information gathering, attaining high rankings in search engines has become a
critical marketing objective.

Purchase Decision Steps 3, 4 and 5

3. Evaluate Options

Consumers’ search efforts may result in a set of options from which a choice can be
made. It should be noted that there may be two levels to this stage. At level one the consumer
may create a set of possible solutions to their needs (i.e., product types) while at level two the
consumer may be evaluating particular products (i.e., brands) within each solution.

For example, a consumer who needs to replace a television has multiple solutions to
choose from such as plasma, LCD and CRT televisions. Within each solution type will be
multiple brands from which to choose. Marketers need to understand how consumers
evaluate product options and why some products are included while others are not. Most
importantly, marketers must determine which criteria consumers are using in their selection
of possible options and how each criterion is evaluated. Returning to the television example,
marketing tactics will be most effective when the marketer can tailor their efforts by knowing
what benefits are most important to consumers when selecting options (e.g., picture quality,
brand name, screen size, etc.) and then determine the order of importance of each benefit.

4. Purchase

In many cases the solution chosen by the consumer is the same as the product whose
evaluation is the highest. However, this may change when it is actually time to make the
purchase. The "intended" purchase may be altered at the time of purchase for many reasons
such as: the product is out-of-stock, a competitor offers an incentive at the point-of-purchase
(e.g., store salesperson mentions a competitor’s offer), the customer lacks the necessary funds
(e.g., credit card not working), or members of the consumer’s reference group take a negative
view of the purchase (e.g., friend is critical of purchase). Marketers whose product is most
desirable to the consumer must make sure that the transaction goes smoothly. For example,
Internet retailers have worked hard to prevent consumers from abandoning online purchase
(i.e., online shopping carts) by streamlining the checkout process. For marketers whose
product is not the consumer’s selected product, last chance marketing efforts may be worth
exploring, such as offering incentives to store personnel to "talk up" their product at the
checkout line.

5. After-Purchase Evaluation

Once the consumer has made the purchase they are faced with an evaluation of the
decision. If the product performs below the consumer’s expectation then he/she will re-
evaluate satisfaction with the decision, which at its extreme may result in the consumer
returning the product while in less extreme situations the consumer will retain the purchased
item but may take a negative view of the product. Such evaluations are more likely to occur
in cases of expensive or highly important purchases. To help ease the concerns consumers
have with their purchase evaluation, marketers need to be receptive and even encourage
consumer contact. Customer service centers and follow-up market research are useful tools in
helping to address purchasers’ concerns.

Aspects of Perception

1. Perceptual selection: consumers subconsciously exercise a great deal of selectivity as to

which aspects of the environmental stimuli, which they perceive.

Important Selective Perception Concepts.

Selective Exposure: Consumers actively seek out messages that they find pleasant or
with which they are sympathetic and they are actively avoid painful or cheatening ones.

Selective Attention: consumers tend to have a highlighted awareness of stimuli that meet
their needs or interest and minimal awareness os stimuli irrelevant to their need
Perceptual defense: Consumers subconsciously screen out stimuli that they would find
psychologically threatening, even though exposure has already taken place.
Perceptual Blocking: Consumers protect themselves from being bombarded with stimuli by
simply “timing out” i.e., blocking such stimuli from conscious awareness.
2. Perceptual organization: People do not express the numerous stimuli they select from the
environment as separate and desire to sensations, rather, they tend to organize them into
groups and perceive them as unified ones.
The three basic principles of perceptual organization are
Figure and ground Grouping Closure.
3. Perceptual Interpretation: it’s been empirically found that perception is a personal
phenomenon, people exercise selectively as to which stimuli they receive, and organize these
stimuli on the basis of certain psychological principles. The interpretation of stimuli is also
uniquely individual, since it is based on what individuals expect to see in light of their
previous experience, on the number of plausible explanations they can envision, and on their
motives and interest at the time of perception.
 CHAPTER-3

INDUSTRY

&

COMPANY PROFILE
 Automobile industry in India

The automobile industry in India is the ninth largest in the world with an annual production
of over 2.3 million units in 2008 In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. 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 domestic automobile market which
attracted significant India-specific investment by multinational automobile manufacturers. In
February 2009, monthly sales of passenger cars in India exceeded 100,000 units.

bryonic automotive industry emerged in India in the 1940s. Following the independence, in
1947, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj
which hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and
multi-national car companies launched operations. Since then, automotive component and
automobile manufacturing growth has accelerated to meet domestic and export demands.
 HISTORY OF THE TWO WHEELERS:

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal –combustion engine (or, less often by an electric engine). The automobile was the
reply to the 19th –century reams of self-propelling the horse-drawn bikeriage. Similarly, the
invention of the motorcycle created the self –propelling bicycle. The first commercial design
was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a
horizontal single-cylinder gasoline engine mounted between two steer able front wheels and
connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles
or pedal cycles by adding small, centrally mounted spark ignition engine engines. There was
then felt the need for reliable constructions. This led to road trial tests and competition
between manufacturers. Tourist Trophy (TT) races were held on the Isle of main in 1907 as
reliability or endurance races. Such were the proving ground for many new ideas from early
two-stroke-cycle designs to supercharged multivalent engines mounted on aerodynamic,
bikebon fiber reinforced bodywork.

INVENTION OF TWO WHEELERS:

The invention of two wheelers is a much-debated issue. “Who invented the first
motorcycle?” May seem like a simple question, “safety”, bicycle, i.e., bicycle with front and
rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles in turn described from high-wheel bicycles. The high –wheelers descended from an
early type of pushbike, without pedals, propelled by the rider’s feet pushing against the
ground. These appeared around 1800, used iron banded wagon wheels, and were called
“bone-crushers”, both for their jarring ride, and their tendency to toss their riders. Gottiieb
Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front
and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It
was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked
wagon-type and it definitely had a “bone-crusher” chassis!
FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-wheeled
design since it was complex enough to get the machines running with out having to worry
about them falling over. The next notable two-wheeler though was the Hildebrand & Wolf
Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built and
engine that was to make the mass production and common use of motorcycle possible. The
first motorcycle with electric start and a fully modem electrical system; the Hence special
from the Indian Motorcycle Company astounded the industry in 1931. Before World War 1,
IMC was the largest motorcycle manufacturer in the world producing over 20000 bikes per
year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World War
1, all branches of the armed forces in Europe used motorcycles principally for dispatching.
After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles lasted
into the late 20th century; weight the vehicle being used for high-speed touring and sport
competitions. The more sophisticated of a 125cc model. Since then, an increasing number of
powerful bikes have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the World.
It stands next only to Japan and China in terms of the number of V produced and domestic
sales respectively. This destination was achieved due to variety of reason like restrictive
policy followed by the government of India towards the passenger bike industry, rising
demand for personal transport, inefficiency in the public transportation system etc. The
Indian two-wheelers industry made a small beginning in the early 50s when Automobile
products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.
 The two –wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield – were caught unaware by the
onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the availability
of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda –then the only
producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD Kits, and later on progressed to
indigenous manufacturing.

The industry had a smooth ride in the 50s, 60s and 70s when government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles
in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.

The reason for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant like increased production in 1992, due
to new entrants coupled with recession in the industry resulted in companies either reporting
losses or a fall in profits.

CONCLUSION:

The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choice, players will have compete on various fronts viz. pricing,
technology product design, productivity after sale service, marketing and distribution. In the
short term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.

As incomes grow and people grow and people feel the need to own a private means of
transport, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.
 The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming
future.

The Asian continent is that largest user of the two-wheelers in the world. This is due to poor
road infrastructure and low per capita income, restrictive policy on bike industry. This is due
to oligopoly between top five players in the segment, compared to thirsty manufacturers in
the bike industry.

Hero Honda motors LTd., is one of the leading companies in the two-wheeler
industry. At present it is the market leader in the motorcycle segment with around 47% the
market share during FY 2000 –01. During the year, company posted a 41.15% yoy rise in
turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in Motorcycle
sales volumes. The company has emerged as one of the most successful players, much ahead
of its competitions an account of its superior and reliable product quality complemented with
excellent marketing techniques. The company has been consistently addressing the growing
demand for motorcycles and has been cumulative customer base of over 4 million customers,
which is expected to reach 5min mark with rural and semi-urban segment being the new class
of consumers.
 COMPANY PROFILE:

ABOUT US

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 of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. 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

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates. The company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners.

Strategy

Hero MotoCorp's key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building activities and
ensure customer and shareholder delight.
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. 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.

Manufacturing

Hero MotoCorp two wheelers are manufactured across 4 globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located
in the state of Haryana in northern India. The third manufacturing plant is based at Haridwar,
in the hill state of Uttrakhand; the latest addition is the state-of-the-art Hero Garden Factory
in Neemrana, Rajasthan.

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 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets, and dealer-appointed outlets across the
country.
CHAIRMAN EMERITUS

PROFILE

DON'T DREAM IF YOU CAN'T FULFILL YOUR DREAMS

- Late Dr. Brijmohan Lall Munjal (1st July 1923 to 1st November 2015)

The founder and patriarch of the Hero Group was your classic first generation entrepreneur.
He was a man who started small, dreamt big and used a combination of grit and perseverance
to create one of the country's largest corporate groups and the World's No.1 Two Wheeler
Company.

Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the
time when the freedom movement in India was taking shape in the late 1920s, he walked into
a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in
Pakistan). He was only six years old then.

Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business
story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set
up a company that provided poor people with basic transport (cycles). Three decades later, as
India evolved, he added a second crucial chapter - which visualized affordable and
technologically superior transport to millions of middle class Indians. The rest is history.

Building Relationships

When Brijmohan and his brothers started out, there was no concept of organized dealer
networks. Companies just produced, and most dealers functioned like traders. Brijmohan
changed the rules of the business by trusting his gut instincts; introducing business norms that
were ahead of their time, and by investing in strategic relationships. Brijmohan built a series
of bonds and networks with hundreds of family members, vendors, dealers and employees.
Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero
Group together.
"Thanks to the relationships that we have nurtured so passionately in the Hero Family, the
younger generations of some of our bicycle dealers have become dealers of Hero MotoCorp.
These relationships have survived through generations - through bad times and good times"
the patriarch now reminiscences. Besides bonding with his vendors and dealers, Brijmohan
was personally responsible for kindling a spirit of entrepreneurship amongst his employees,
and today, 40 of his former employees are successful entrepreneurs.

Staying Ahead: Though not technically qualified in the conventional sense, only a few of
his contemporaries have understood the dynamics of technology better than Brijmohan Lall
had. He could always visualize the applicability of technology before others could. For
example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine
technology, Brijmohan preferred a four-stroke engine - a technology that dramatically
increased fuel efficiency and reduced maintenance costs. This technology was one of the
biggest reasons for Hero MotoCorp's stupendous success.

A Corporate Citizen:A frugal upbringing and a value system modeled on the famous
Gurukul system - which stresses the sanctity of the teacher-pupil relationship - imbibed in
Brijmohan a strong sense of social commitment and responsibility.

There was a special place in his heart for Ludhiana, the city where he took roots. Today,
Ludhiana is a modern, bustling city, but Brijmohan had played no mean role in its evolution.
Several schools and educational institutions in Ludhiana owe their existence to the Munjal
family.The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the
Ludhiana Flying Club. He's also set up the not-for-profit Dayanand Medical College and
Hospital-an institute now rated as one of the best medical colleges in India, in terms of
infrastructure, quality of staff and alumni profile.

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

PROFILE

MR. PAWAN MUNJAL

Chairman, Managing Director & CEO

MR. PRADEEP DINODIA

Non Executive & Independent Director

GEN. (RETD.)V. P. MALIK

Non Executive & Independent Director

MR. SUMAN KANT MUNJAL

Non Executive Director

MR. PAUL EDGERLEY

Non Executive Director

DR. ANAND C. BURMAN

Non Executive & Independent Director

MR. SUNIL KANT MUNJAL

Jt. Managing Director

MR. M. DAMODARAN

Non Executive &Independent Director

DR. PRITAM SINGH

Non Executive & Independent Director

MR. RAVI NATH

Non Executive & Independent Director

MS. SHOBANA KAMINENI

Non-Executive and Independent Director

LEADERSHIP TEAM

MR. RAVI SUD

Sr. Vice President & Chief

Financial Officer

MR. VIKRAM KASBEKAR

Sr. Vice President - Head of Operations & Supply Chain

MR. VIJAY SETHI

Chief Information Officer &

Head Corporate Social Responsibility

DR. MARKUS BRAUNSPERGER

Chief Technology Officer

MR. ASHOK BHASIN

Head of Sales, Marketing & Customer Care (SMCC)

MR. SANJAY JORAPUR

Chief Human Resources Officer

MR. NEERAJ MATHUR

Vice President - Strategic Sourcing &

Supply Chain Management

MR. DEEPAK MOKASHI

Vice President &

Head International Business

MR. SANJAY BHAN

Business Head - Parts Business

MR. HARJEET SINGH

Vice President &

Head of Global Regulatory

MR. RAJAT BHARGAVA

Head of Strategy &

Performance Transformation
 MILESTONES

A LEGACY OF PATH BREAKING ACHIEVEMENTS

2015

 60 Million cumulative 2 wheelers production

2014

 Emrana Plant Inauguration

 Global Parts Centre Inauguration

2013

 Neemrana Plant Foundation Stone laid

 Global Parts Centre Foundation Stone laid
 50 Million cumulative 2 wheelers production

2012

 Migration of all products to Brand Hero

 Strategic partnership with Erik Buell Racing (EBR) of USA
 Launch of Impulse, Maestro and Ignitor
 Debut in the AMA Superbike Racing in the US

2011

 New licensing arrangement signed between Hero and Honda (Hero Honda is renamed
as Hero)
 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

2010

 New model Splendor Pro launched

 Launch of new Super Splendor and New Hunk
HISTORY

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.[4]

 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

 1975—Hero Cycles becomes largest bicycle manufacturer in India.
 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
 1984—Hero Honda Motors Ltd. incorporated
 1985—Hero Honda motorcycle CD 100 launched.
 1989—Hero Honda motorcycle Sleek launched.
 1991—Hero Honda motorcycle CD 100 SS launched.
 1994 -- Hero Honda motorcycle Splendor launched.
 1997—Hero Honda motorcycle Street launched.
 1999 -- Hero Honda motorcycle CBZ launched.
 2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero
Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*
launched.
 2005—Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda
Scooter Pleasure.
 2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus
and Hero Honda motorcycle Hunk launched.
 2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,
Glamour Fi and Hero Honda motorcycle Passion Pro launched.
 2009—New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited
edition of Hero Honda motorcycle Hunk launched
 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda
motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
  2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched. New licensing arrangement signed between Hero and Honda. In
August Hero and Honda parted company, thus forming Hero MotoCorp and Honda
moving out of the Hero Honda joint venture. In November, Hero launched its first
ever Off Road Bike Named Hero "Impulse".
 2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the
young generation bike are launched.

Awards

2016

Overdrive - Scooter of the Year - Hero Maestro Edge

Overdrive - 'Viewers' Choice Scooter of the Year - Hero Maestro Edge

Overdrive - Manufacturer of the Year (Two-wheeler) Award - Hero MotoCorp

2014

Motorbeam - Bike Manufacturer of the year

Zigwheels - Entry-Level Bike of the year: Hero Splendor iSmart

2013

Green Pioneer Award - 2013

"Business Leader of the Year" Award by Hon'ble President of India, Shri. Pranab Mukherjee,
at the AlMA Managing India Awards 2013 on April 11, 2013 (Conferred on Mr. Pawan
Munjal)

"Business Leader of the Year" Award in the Auto (Two Wheelers) category by Deputy
Chairman of the Planning Commission Mr. Montek Singh Ahluwalia, at the NDTV Business
Leadership Awards 2013 (Conferred on Mr. Pawan Munjal)
CFO of the year Award (Conferred on Mr. Ravi Sud)

Motorbeam - Bike Manufacturer of the year

Business Leader of the Year- AIMA Managing India Awards

2012

Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business Leadership

Awards 2012 (Conferred upon Mr. Pawan Munjal)

Best value for Money Bike Maker and Best Advertising in Two Wheelers Category at the
Auto India Best Brand Awards 2012

Digital Advertiser of the year at the Indian Digital Media Awards (IDMA) 2012

Three awards (Launch Event of the year, Rural Engagement Progamme and Live Patron
Award for Marketing Excellence) at the WOW Awards organised by EventFAQs

Advertiser of the year 2012 by Indian Digital Media Awards 2012

Innovation in Loyalty Marketing Award (Initiative: Hero GoodLife Utsav) by Colloquy

Loyalty Awards

TPM Excellence Award 2012 by JIPM (Japan Institute of Plant Maintenance)

Best Learning & Development Award

Asias Third Best Employer Brand Award

ET Now Talent & HR Leadership Award

8th Recruiting and Staffing Best-in-Class Award

Global HR Excellence Award

India Human Capital Award by Human Capital

Business Technology Excellence Awards 2012

Business Technology Innovation Awards 2012

Top Green IT Enterprise Award

IT Transformers Award

Quality Circle Excellence Award at National QC Convention - 2012

2011

wo-wheeler Manufacturer of the Year award by Bike India magazine.

Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and
Bike Awards

CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new

corporate entity" by CNBC Awaaz Consumer Awards

"Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer
Awards

Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero
GoodLife

"Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing
Award of Asia Order of Merit for Hero GoodLife

Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted
Brand" 2011 survey

'Innovator of the Year' NDTV Profit Business Leadership Awards.

 TERMINATION OF HONDA JOINT VENTURE

Main article: Hero Honda split

In December 2010, the Board of Directors of the Hero Honda Group have decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a phased
manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. [15]
Under the joint venture Hero Group could not export to international markets (except Sri
Lanka) and the termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda for the technology in their
bikes. So there are concerns that the Hero Group might not be able to sustain the performance
of the Joint Venture alone.[16]

Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff
Olins.[17] The logo was revealed on 9 August 2011 in London, the day before the third test
match between England and India.[17]

Hero MotoCorp can now export to Latin America, Africa and West Asia. [17] Hero is free to use
any vendors for its components instead of just Honda-approved vendors.[17]

Company performance

During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over
last year. In the same year, the company had a market share of 57% in the Indian market. [18]
Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler
companies put together.[11] Hero Honda's bike Hero Honda Splendor sells more than one
million units per year.[19] On 1st June 2012, Hero MotoCorp reported its highest ever
monthly sales at 5,56,644 units in May, registering a growth of 11.28%.[20]
RECOGNITION

Logo of Hero Honda, as the company was known till Aug. 2011

The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the
13th position among the brands in India.

Motorcycle models

See also: Category:Hero Honda motorcycles

 Sleek
 Street
 Ambition 133, Ambition 135
 CBZ, CBZ Star, CBZ Xtreme
 CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
 Glamour, Glamour F.I
 Hunk
 Karizma, Karizma R, Karizma ZMR FI
 Passion, Passion Plus, Passion Pro
 Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG,Splendor PRO
 Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's first
off-road and on road Bike.

Suppliers

It is reported Hero Honda has five joint ventures or associate companies, Munjal Showa, AG
Industries, Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply a
majority of its components.
Type Public company
BSE: 500182
Traded as NSE: HEROMOTOCO
BSE SENSEX Constituent
Industry Automotive
Founded 19 January 1984 (Gurgaon)
Founder(s) Brijmohan Lall Munjal
Headquarters New Delhi, India
Brijmohan Lall Munjal (Chairman)
Key people
Pawan Munjal (MD & CEO)[1]
Motorcycles, scooters, three-wheeler
Products
vehicles and spare parts
23,579.03 crore (US$4.27 billion)
Revenue [2]

Operating 2,597.07 crore (US$470.07

income million) (FY 2010-2011)
2,378.13 crore (US$430.44
Net income
million) (2011)[3]
Parent Hero Cycles
Website www.heromotocorp.com

SUPPLY CHAIN

(An Initiative of Hero MotoCorp for protecting and preservation of Environment)

Rapid industrialization and advanced technological changes have put Indian economy on fast
growth. But such developments pose, unprecedented challenges to human society in term of
climatic and environmental degradation. Therefore the people and governments have come
forward to dealt with environmental threats and also to explore many opportunities so as to
address the environmental issues and also to create a sustainable environmental future for all.

We at Hero MotoCorp are continuously striving for synergy between technology, system and
human resources, to provide products and services, to meet the aspiration of our valued
customers that too, demonstrating our "WE CARE" philosophy. While doing so, we maintain
the highest standards of ethics and societal responsibility, constantly innovate the products
and process and work in partnership with our supply vendors to take the organization to new
excellences. We believe that our vendors and dealers are key stakeholders and partners to
work towards the goal of sustainable development.

Green Vendor Development Programme refers to the

way in which organizational innovations in industrial
supply chain management may be considered in the
context of the environment. Organizations which act
proactively not only to identified but also to implement
actions in process / operation so as to address
environmental issues.

Green Vendor Development Programme (GVDP) encourages a collaborative effort between

Hero MotoCorp and its suppliers to achieve Hero MotoCorp's overall corporate
environmental goal. GVDP calls for partner companies to demonstrate their commitment
towards improved environmental performance and striving for continual improvement.
Six pillars have been assigned to GVDP model which are Energy management, Water
management, Waste minimization, Prevention of Pollution, Substitution of hazardous
chemical and Environmental compliance management.

Partner vendors are given specific training on all six pillars of GVDP and mapping of
processes/equipments is carried out based on logical analysis so as to identify the gaps or
significant environmental aspect and accordingly improvements projects are undertaken for
implementation. The programme works on PDCA approach.

HMCL also endeavors to provide a platform on which the vendors can share their
environment achievements and problems encountered during implementation of the green
vendor program. The objective of this meet is to share success stories on environmental
improvements that can be replicated at other vendor facilities. This platform lays the
foundation for a mutually beneficial eco-future.

We understand that environmental protection is our responsibility towards our future

generations and thus while providing our customers with supreme quality of products and
services it is important for us to ensure that environmental considerations are given utmost
importance. We will continue taking initiatives towards environmental protection and base all
our business decisions on environmental considerations.

NEW PRODUCTS

Hero MotoCorp Splendor Hero MotoCorp Passion

Hero MotoCorp Splendor NXG
Plus Plus

Hero Motorcorp Karizma R Hero MotoCorp Glamour Hero MotoCorp CD Delux

Hero Honda Hunk Hero Moto Corp Impulse Hero Honda Karizma ZMR
Hero MotoCorp CBZ Xtreme
ATFT

Contract us:

Registered Address

34, Community Centre,

Basant Lok,,Vasant Vihar
New Delhi
Delhi
110057
Tel: 011-46044100 011-26142451
Fax: 011-26143321/26143198
Email: ilam.kamboj@heromotocorp.com
Website: http://www.heromotocorp.com
Group: Hero Group

Registrars

Karvy Computershare Private Ltd. Plot No. 17-24,

Vittal Rao Nagar,
Madhapur,
Email: einward.ris@karvy.com
Website: http://www.karvy.com

Management - Hero Motocorp

Name Designation
Brijmohan Lall Munjal Chairman / Chair Person
Anand C Burman Non.Exe.Independent Director
Analjit Singh Non.Exe.Independent Director
Sunil Kant Munjal Joint Managing Director
Pradeep Dinodia Non.Exe.Independent Director
Ravi Nath Non.Exe.Independent Director
Name Designation
Pawan Munjal Managing Director & CEO
Pritam Singh Non.Exe.Independent Director
Suman Kant Munjal Non Executive Director
V P Malik Non.Exe.Independent Director
Meleveetil Damodaran Non.Exe.Independent Director
Paul Edgerley Non Executive Director
 PHOENIX MOTORS PROFILE
PHOENIX MOTORS Pvt Ltd., is one of the biggest Hero Moto Corp show rooms in the
state. PHOENIX MOTORS Pvt Ltd., Was established on 21 st march 2003 as Hero Moto Corp
authorized dealer. Mrs. Madhumathi is the Managing Director of the company.

PHOENIX MOTORS Pvt Ltd., is selling around 850 vehicles per month and around 120
employees are working in the company. Marketing and sales department has one Marketing
Manager, four Marketing Executives and 12 members’ sales team.

PHOENIX MOTORS Pvt Ltd. has a huge automated workshop for servicing of the vehicles.
Daily around 100 vehicles are serviced and repaired in the servicing center. Workshop has
one manager, four member Tech supervisors and skilled mechanics.

PHOENIX MOTORS Pvt Ltd. Had linked with HDFC, ICICI and Central Banks to finance
the customers who wish to buy the vehicles in finance.

PRODUCT INFORMATION

The Hero Moto Corp Passion Plus is a cosmetic up gradation of the Hero Moto
Corp Passion that involves two tone colors, body colored mirrors, white dial instrument
cluster and a wider pillion grip. It has included new bright multi-reflector headlight, tall light
and indicators that provides improved safety while driving

Company Stroke Maximum Power Displacement

Hero Moto Corp
4-Stroke 7.5 PS at 8000 rpm 97.2 cc
Motors Ltd.

Striking Features
  Aluminium die cast rear grip
 Heat protector on the muffler
 New dials in the instrumental panel
 Multi-reflector winkers
 Wider wheel base
 Large storage space with locking facility
 Broad rear tyre

COLER VARIANY

 Moon yellow
 Cloud silver
 Amranth maroon
 Tornado grey
 Tahitian blue
 Black with magna red stripes
 Black with purple stripes
 Candy blazing red
 Turquoise blue
 Tasmanian green
 Black with orange stripes

PRICE TAG
Rs. 48,250
(The prices are to the close approximation. Please check the latest prices and variant
specifications with your dealer.)
 CHAPTER-4

DATA ANALYSIS

& INTERPRETATION
 1. AGE GROUP OF THE RESPONDENTS:

1.1 The below table shows the age group of the respondents surveyed:

Percentage
AGE No Of Respondents
54%
18-25 54
28%
25-35 28
10%
35-45 10
8%
Above 45 8
100%
Total 100

INTERPRETATION: From the above table, 54% of the respondents belong to the age
group of 18-25 years, 28% of the respondents belong to the age group of 25-35 years, 10% of
the respondents belong to the age group of 35-45 years, 8% of the respondents belong to the
age group of above 45 years.
 2. Gender:

2.1 The below table shows that the gender of the responds.

Gender No Of Respondents in percent

Male 91
Female 9
Total 100

INTERPRETATION:
From the above table 91% of male and 9% of the female are prefer to buy a bike.

3. OCCUPATION OF THE RESPONDENTS:

3.1 The below table shows the type of respondents of the respondents surveyed.

No Of Respondents
Occupation Percent
Student 36
Business 18
Private Employee 28
Govt Employee 18
Total 100

INTERPRETATION: From the above table 36% of the respondents are students, 18% of the
respondents are businessmen, 28% of the respondents are private employee, 18% of the
respondents are Govt employee.

4. INCOME PER MONTH:

Income per month No Of Respondents in percent

5000-10000 37
10000-20000 28
20000-30000 23
above 30000 12
Total 100
INTERPRETATION:

From the above table 5000-10000 income respondents 37%, 10000-20000 income
respondents 28%, 20000-30000 income respondents 23% and above 30000 income
respondents12% are prefer to buy a bike.

5. HAVING A TWO WHEELER OR NOT:

The below table shows that whether the respondents is having a two wheeler or not

Having a two wheeler or not No of respondents

Yes 80
No 20
Total 100
INTERPRETATION:

From the above table 80%of people having two wheelers

And 20% are not having two wheelers.

6. TYPE OF BIKE THAT THE RESPONDENT IS HAVING:

The below table shows the type of bike that the respondent is having.

Type of bike No of respondents % of respondents

Moto Corp 42 42
Yamaha 14 14
Bajaj 26 26
TVS 07 7
Honda 08 8
Suzuki 03 3
Total 100 100
 I
NTERPRETATION:

From the above table 42%of the respondents are having Moto Corp bikes. 14%of the
respondents are having Yamaha bikes. 26%of the respondents are having Bajaj bikes.7% of
the respondents are having TVS bikes.8% of the respondents are having Honda bikes.3% of
the respondents are having Suzuki bikes.

7. MAIN MOTIVE

The following table shows, the main motive, which the respondents want to be in their brand
of bike.

After Sales
Age group Style Performance Mileage Service Total
18-25 32 14 2 6 54
25-35 18 4 3 3 28
35-45 2 3 3 2 10
above 45 1 1 3 3 8
Total 53 22 11 14 100
Ho: There is no significant difference in Age group

Ha: There is significance difference in age group

Original
S.No value Expected value O-E (O-E)2 (O-E)2/E
1 32 28.62 3.38 11.42 0.4
2 14 11.88 2.12 4.49 0.38
3 2 5.94 -3.94 15.52 2.61
4 6 7.56 -1.56 2.43 0.32
5 18 14.48 3.16 9.99 0.67
6 4 6.16 -2.16 4.67 0.76
7 3 3.08 -0.08 0.006 0.001
8 3 3.92 -0.92 0.85 0.22
9 2 5.3 -3.3 10.89 2.05
10 3 2.2 0.8 0.64 0.29
11 3 1.1 1.9 3.61 3.28
12 2 1.4 0.6 0.36 0.26
13 1 4.24 -3.24 10.5 2.48
14 1 1.76 -0.76 0.58 0.33
15 3 0.88 2.12 4.49 5.1
16 3 1.44 1.56 2.43 1.69
Total 20.84
FORMULA:
Expected value =(Row total x Column total)/Grand total

HYPOTHESIS:
The calculated value of Chi-square (20.84) is less than table value (24.996) (at 5% level of
significance).
The null hypothesis is accepted.
There for there is no significance difference in age group.

8. SOURCES OF INFORMATION

The below table shows, from where did the respondent get the information about the
Bike.
 Sources of information No of respondents
Offers 15
Advertisements 27
Referred from friends & relatives 33
Technology 10
Finance Schemes 15
Total 100

INTERPRETATION:

From the above table 15%of people known from offers, 27% of people known from
advertisements, 33% of people known from their friends and relatives, 10% of people known
from technology,15% of people known from finance schemes.

9. SATISFACTION WITH MOTO CORP:

After Sales
Moto Corp Style Performance Features Price Mileage Reliability Service
Excellent 13 8 6 0 5 6 8
Very good 17 14 14 7 8 16 10
Good 8 12 19 19 16 11 15
Average 4 6 3 9 11 7 8
Poor 0 2 0 7 2 2 1
Total 42 42 42 42 42 42 42
CHAPTER-5

SUMMARY

EXECUTIVE SUMMARY
The bikes recently introduced by Moto Corp are mostly concerned about youth. So, they
should also consider middle-aged people while Manufacturing. Indian market is a price
sensitive market’s the bikes should be at Minimum price with maximum quality. The
standard of service centers should be improved.

Advertisements in Televisions, offers should be increased to attract the People. If

Moto Corp can improve in style and power it will be the best in all the Other competition
brands.

CONCLUSIONS
 40% of the respondents are Moto Corp owners and hence it is most
preferred motorcycle brand out of various brands.
 Moto Corp NXG is the most preferred model out of Her Corp.
 60% of the respondents are considering Moto Corp brand before Purchasing their
vehicle.
 Most of the respondents are getting information through friends Before purchasing
the vehicle.
 Most of the respondents are having good satisfaction with dealer Service
comparing to other brands.
 Most of the respondents are giving more preference to mileage.
 60% of the respondents are affecting by their friends and relatives.
 FINDINGS

 40% of the Moto Corp customers are employees and 29% of the customers are
students.
 Most of the respondents belong to the age group of 18-25 years.
 Moto Corp NXG is the most preferred model in the Moto Corp products.
 Most of the respondents getting information through the Media and friends before
purchasing the vehicle.
 Most of the respondents are motivated by their friends and family members.
 Most of the respondents have good satisfaction with the performance of their vehicle.
 64% of the respondents are satisfied with the mileage of their vehicle.
 Most of the respondents felt that the price is reasonable.
 Cent percent of the respondents satisfied with the response of the sales executive at
first visit.
 60% of the Moto Corp users have good satisfaction with the after sales services given
b the dealer.
 Most of the respondents are satisfied with the response of the company to the
complaints given by the customers.
 Most of the respondents are satisfied with the fulfillment of promises by the company.
BIBILIOGRAPHY
 BIBILIOGRAPHY

Philip Kotler & Kevin Lane Keller, “Principles of Marketing”

13th Edition, Prentice Hall India, P:-167-174.

Schiffman & Kanuk, “Consumer Behavior” 8th Edition, Prentice Hall India, (2004)
P:- 85-251,329-437.

G.C. Beri, “Marketing Research” 4th Edition, McGraw Hill Publications, P:- 153-176.

V.S.Ramaswamy & Namakumari, “Marketing Management”

4th Edition, MacMillan Publishers India Ltd.

Edward W.Cundiff & Norman A.P Govani, “Sales Management”

5th Edition-Pearson, P:-24-31.

S.Sumathi & P. Saravanavel, “Marketing Reserch and Consumer Behaviour”, Vikas

Publishcations, P:- 441-456.

WEB SITES

www.Moto Corp.com
www.tvsmotors.com
www.bajajauto.com
www.yamaha.com
 QUESTIONNAIRE

BUYING MOTIVES FOR TWO WHEELERS

1. NAME:

2. AGE :

A. 18-25 B. 25-35 C. 35-45 D. Above-45

3. GENDER

A. Male B. Female

4. EDUCATION

A. Under Graduate B. Graduate C. Post Graduate D. Professional

5. OCCUPATION

A. Student B.Business C. Govt. Employee D. Private Employee

6. INCOME PER MONTH

A. 5000-10000 B. 10000-20000 C. 20000-30000

7. DO YOU HAVE ANY TWO WHEELER

A. Yes B. No

8. IF YES, WHICH BRAND YOU HAVE

 A. Moto Corp B. Suzuki C. Bajaj D. TVS

E. Yamaha F. Honda
9. WHAT IS THE MAIN MOTIVE BEHIND PURCHASING THAT BRAND?

A. Style B. Performance C. Price

D. Mileage E. Reliability F. After Sales Service

10 IN WHICH WAY YOU PREFERED IN BUYING THAT PERTICULAR BRAND

BIKE ?
A. Advertisement B. Referred from friends & Relatives

C. Technology D. Finance Schemes E. Offers

11. RANK THE BIKE YOU OWN ON THESE FACTORS

VERY
POOR AVERAGE GOOD EXCELLENT
GOOD

STYLE

PERFORMANCE

FEATURES

MILEAGE

RELIABILITY

AFTER SALES
SERVICE
12. IF YOU DON’T HAVE BIKE, THEN WHICH BRAND YOU PREFER TO BUY?

A. Moto Corp B. Yamaha C. Bajaj

 D. TVS E. Honda F. Suzuki

13. WHAT IS THE REASON FOR SELECTING THAT BRAND?

A. Style B. Price C. Mileage

D. Finance Facility D. Brand Image F. Reliability

G. After Sales Services H. Power I. Performance

14. IN WHICH WAY YOU PREFERED IN BUYING THAT BRAND ?

A. Offer B. Advertisement C. Referred from Friends & Relatives

D. Technology E. Finance Schemes