A

PROJECT REPORT

ON

“CUSTOMER SATISFACTION TOWARDS HERO MOTOCORP LTD.”

PALAMPUR-176061

Submitted for the partial fulfillment towards the

Award of the degree in bachelor of business Administration of

Himachal Pradesh University, Shimla

SUPERVISED BY: SUBMITTED BY:

School of Business Management Rajat Kumar
Govt. PG College, Dharamshala BBA
Roll No. : 15015
Batch- 2015-2018
Semester: VI Sem.

DEPARTMENT OF B.B.A.
SCHOOL OF BUSINESS MANAGEMENT

GOVT. POST GRADUATE COLLEGE,

DHARAMSHALA

1
 ACKNOWLEDGMENT

It gives me immense pleasure to present this report on entitled “CONSUMER

SATISFACTION TOWARDS HERO MOTOCORP LTD. At BRS HERO AUTHORISED

AT PALAMPUR” in partial fulfillment of B.B.A.

I take this opportunity to extend my sincere thanks to H.P.U for offering a unique platform to
earn exposure and knowledge in the field of Sales and Marketing. First of all, I extend my
heartfelt gratitude to my Principal cum Director Prof.Sunil Mehta, Coordinator BBA Dr. Ajay
Katoch,My Project Guide Miss.Sujata kaundal Asst. Professor Department of BBA for
helping in me out various aspects of my project.

Miss.Sujata Koundal Rajat Kumar

(Assistant Professor) UniversityRoll.no.5115GHYU430021

2
 TO WHOM IT MAY CONCERN

It is certified that Mr. Rajat Kumar BBA student of Govt. Degree College, Dharamshala has

make a report at BRS HERO AUTHORISED at PALAMPUR . During the study period he has

been made through his study regarding customer satisfaction towards HERO MOTOCOP LTD.

We wish him success and bright future.

Authorized Signature
Managing Director
For BRS HERO
Palampur

3
 TABLE OF CONTENTS

S.No Title Page no.

1 INTRODUCTION

2 COMPANY PROFILE

3 RESEARCH METHODOLOGY

4 DATA ANALYSIS & INTERPRETATION

5 FINDINGS, LIMITATIONS & CONCLUSION

6 BIBLIOGRAPHY

7 QUESTIONNAIRE

4
INTRODUCTION

5
INTRODUCTION

Hero MotoCorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter

manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between

Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer

in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at

#108.

In 2010, when Honda decided to move out of the joint venture, Hero Group bought the

shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp

with a new corporate identity On June 4, 2012,Hero MotoCorp approved a proposal to merge the

investment arm of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18

months of its split from Honda Motors.

Type Public company

Traded as BSE: 500182

NSE: HEROMOTOCO

BSE SENSEX Constituent

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Industry Automotive

Founded January 19, 1984

Founder(s) Brijmohan Lall Munjal

Headquarters New Delhi, India

Area served India, Sri Lanka

Key people Deya Varadh Sens (Chairman)

Pawan Munjal (MD & CEO)

Products Motorcycles, Scooters, Three-Wheeler vehicles

Revenue  239.43 billion (US$4.36 billion) (2012)

Net income 23.78 billion (US$432.8 million) (2012)

Total assets  60.58 billion (US$1.1 billion) (2012)

Parent Hero Group

Website www.heromotocorp.com

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History

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.

 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.

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 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.

 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, 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

9
 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 Masculine scooter and Ignitor the young

generation bike are launched

Company profile

“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles

Ltd. A joint venture between the Hero Group and Honda Motor Company was established in

1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group

both owned 26% stake in the Company. In 2010, it was reported that Honda planned to sell its

stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel

economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it -

10
Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-

digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years

(1984–2010) has come from the Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and

at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per

year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and

service points across India. Hero Honda has a customer loyalty program since 2000, called the

Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million

two-wheelers by 2016–17. This in conjunction with new countries where they can now market

their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve

10 per cent of their revenues from international markets, and they expected to launch sales in

Nigeria by end-2011 or early-2012.

CORPORATE 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

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 Hero MotoCorp 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 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.

Manufacturing

Hero Honda bikes are manufactured across three 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 and

the latest Manufacturing plant is based at Haridwar, in the hill state of Uttarakhand.

Technology

In the 1980’s the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke

motorcycles in the country. It became the first Company to launch the Fuel Injection (FI) technology in Indian

motorcycles, with the launch of the Glamour FI in June 2006.

Its plants use world class equipment and processes and have become a benchmark in leanness and

productivity.

Hero MotoCorp, in its endeavor to remain technology pioneer, will continue to innovate and develop

cutting edge products and processes.

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 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

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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. 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 Interim Dividend of Rs. 70 per share on face value

of each Share of Rs. 2 each

 EBIDTA margin for the year 13.49 per cent

 EPS of Rs. 96.54

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KEY EXECUTIVES:

S.No Name Designation

1 Jatin kumar Manager (sales)

2 Neetu kapoor HRD & Administration

3 Luvkesh Sharma
Sales Executive
Deepak kumar

4 Arti Manager of finance & sales

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Termination of Honda joint venture

In December 2010, the Board of Directors of the Hero Honda Group has 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. 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.

The Japanese auto major will exit the joint venture through a series of off market

transactions by giving the Munjal family—that held a 26% stake in the company—an additional

26%. Honda, which also has an independent fully owned two wheeler subsidiary—Honda

Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount and get over $1

15
billion for its stake. The discount will be between 30% and 50% to the current value of Honda's

stake as per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an irritant.

Differences had been brewing for a few years before the split over a variety of issues, ranging

from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year

technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty

payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero

Honda (mainly managed by the Munjal family) to merge the company's spare parts business with

Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led

by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle

(SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would

eventually be thrown open for private equity participation and those in the fray include Warburg

Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for

existing as well as future models.[20]

16
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.

Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler

companies put together. Hero Honda's bike Hero Honda Splendor sells more than one million

units per year. On 1 June 2012, Hero MotoCorp reported its highest ever monthly sales at 5,

56,644 units in May, registering a growth of 11.28%.

Recognition

The Brand Trust Report published by Trust Research Advisory has ranked Hero in the

13th position among the brands in India.

Motorcycle models

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  Streak

 Achiever

 Ambition 133, Ambition 135

 CBZ, CBZ Star, CBZ Extreme

 CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)

 Glamour, Glamour F.I

 Hunk

 Karizma, Karizma R, Karizma ZMR FI

 Passion, Passion Plus, Passion Pro

 Pleasure

 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.

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Competitors:

 Bajaj Auto

 TVS Motor

 KTM

 MAHINDRA

 HONDA

 YAMAHA

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DEPARTMENTS.
FINANCE:

 Revenues rise 2.5% yoy on back of a 3.6% yoy increase in realizations. The improvement

was sharp sequentially wherein net sales were better by 19.3% qoq post a weak Q2 FY12 

 Margins at 12.6% were down 304bps yoy and 128bps qoq on back of increased ad spends

and higher material costs (unfavorable product mix)

 Depreciation which includes royalty payments to Honda was noted lower by 2.2% qoq on

back of weakening of yen against Rupee

 On back of slightly better volumes in H2 FY12, we build in flat volumes for the year and

assume moderate growth in FY13 

 Maintain Market Performer with a revised 9-month price target of Rs1, 945. 

HR FUNCTIONS:

The following are main function of Human Resource department and manager.

They are as follows:

 Recruitment

 Training

 Disciplinary action

 Preparing an organization chart

 Maintain and updating employee’s personnel data

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 Long term settlement co-ordination

 Shift & attendance record

 Employee grievances

 Safety

 Security

 Employee social arrangement

 Leave records maintenances

 Leave records maintenances

 Advise to wages calculation

 Retirement

 Award distribution

 Annual day celebration

 Communication, union, employee ship council meeting

 conducting safety programs

 Providing uniforms.

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 RESEARCH

METHODOLOGY
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RESEARCH METHODOLOGY

RESEARCH DESIGN
The research is primarily descriptive in nature. The sources of information are both primary &
secondary.
A well-structured questionnaire was prepared and personal interaction was done.

SAMPLING METHODOLOGY

SAMPLING TECHNIQUE: Initially, a rough draft was prepared keeping in mind the
objective of the research. A pilot study was done in order to know the accuracy of the
Questionnaire.

SAMPLING UNIT: The respondents who were asked to fill out questionnaires are the
sampling units. These comprise of customers coming to the show room.

SAMPLE SIZE: The sample size was restricted to only 100, which comprised of mainly
peoples from PALAMPUR due to time constraints.

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SAMPLING AREA: The area of the research was PALAMPUR, DISTT. KANGRA,
HIMACHAL PRADESH, INDIA.

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DATA ANALYSIS AND

INTERPRETATION

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The below mentioned data was collected and anaysed in terms of customer satisfaction and
integrity of the products HERO MOTO CORP has to offer:-

1. GENDER PROFILE:
Table 1. indicating gender profile of the respondents

gender Percent

Male 75

Female 25

Total 100

Interpretation:

A. 75% of the respondents were male.

B. 25% the respondents were female.

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2. AGE PROFILE:
Table 2. indicating age profile of the respondents

Age Percent

18-19 5

20-29 41

30-39 29

40 and above 25

Total 100

Interpretation:

A. 41% of the respondents fail in the age group of below 20-29.

B. 29% of the respondents fail in the age group of 30-39.
C. 25% of the respondents fail in the age group of 40 and above.
D. 5 of the respondents fail in the age group of 18-19.

3. Occupation of the respondents:

27
 Table 3. indicating occupation of the respondents.

Occupation Percent

Business 43

Service 32

Student 5

Agriculture 20

Total 100

Interpretation:

A. 43% of the respondents were business class.

B. 32% of the respondents were service class.
C. 20% of the respondents were agriculture.
D. 2% of the respondents were student.
4. Income of the respondents:

Table 4. indicating income of the respondents.

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 Income Percent

<10,000 15

10,000-15,000 44

15,000-20,000 30

20,000 and above 11

Total 100

Interpretation:
A. 44% of the respondents fall in below 10,000-15,000.
B. 30% of the respondents fall in between 15,000-20,000.
C. 15% of the respondents fall in the bracket of <10,000.
D. 11% of the respondents fall in the 20,000 and above.

Analysis:-
1. Do you have own bike?

29
 Percent

Yes 65

No 35

Total 100

Interpretation:

A. 65% respondents have own bike.

B. 35% respondents don’t have own bike.

2. Which medium do you refer for purchasing bike?

sources Percent
Newspaper 26

TV advertisement 24

30
 Friends & relatives 38

Others 12

Total 100

Which medium do you refer for purchasing

bike?

others
Newspaper
12%
26%

Friends & relatives

38% TV advertisement
24%

Interpretation:

1. 38% of the respondents had the knowledge through friends & relatives.
2. 26% of the respondents had the knowledge through newspaper.
3. 24% of the respondents had the knowledge through TV advertisement.
4. 12% of the respondents had the knowledge through others.

3. Who is decision maker for purchasing bike in your family?

Decision maker Percent

Father 46

Mother 8

Self 42

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 Other 4

Total 100

Who is the decision maker for purchasing a

bike in your family?
other
4%

father
self
46%
42%

mother
8%

Interpretation:

A. 46% of the respondents take decision by father.

B. 8% of the respondents take decision by mother.
C. 42% of the respondents take decision by self
D. 4% of the respondents take decision by others.

4. What is your source of finance?

Source of finance Percent

By cash 35

By loan 65

Total 100

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Interpretation:

A. 65% of the respondents purchase bike by loan.

B. 35% of the respondents purchase bike by cash.

5. Which factors influence you to purchase HERO bike?

Brand reputation

FACTOR MOST MORE IMPORTANT LESS LEAST

IMPORTANT IMPORTANT IMPORTANT IMPORTANT

BRAND 52 33 12 3 0
REPUTATION

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 Interpretation:
A. 52% respondents told that brand is most important.
B. 33% respondents told that brand is more important.
C. 12% respondents told that brand is important.
D. 3% respondents told that brand is less important.
E. 0% respondents told that brand is least important.

COLOUR

factor Most More important Less Least

important important important important
COLOUR 69 28 3 0 0

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Interpretation:

A. 69% of the respondents told that COLOUR is most important.

B. 28% of the respondents told that COLOUR is more important.
C. 3% of the respondents told that COLOUR is important.
D. 0% of the respondents told that COLOUR is less important.
E. 0% of the respondents told that COLOUR is least important.

Price

Factor Most More Important Less Least

important important important important
Price 57 34 9 0 0

35
 Interpretation:

1. 57% of the respondents told that price is most important.

2. 34% of the respondents told that price id more important.
3. 9% of the respondents told that price is important.
4. 0% of the respondents told that price is less important.
5. 0% of the respondents told that price is least important.

Pick up

Factor Most More Important Less Least

important important important important

Pick up 5 11 49 21 14

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Interpretation:

1. 49% of the respondents told that price is important.

2. 21% of the respondents told that price is less important.
3. 14% of the respondents told that price is least important.
4. 11% of the respondents told that price is more important.
5. 5% of the respondents told that price is most important.

Mileage

Factor Most important More important Less important Least important

important

Mileage 19 44 35 2 0

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Interpretation:

1. 44% of the respondents told that mileage is more important.

2. 35% of the respondents told that mileage is important.
3. 19% of the respondents told that mileage is most important.
4. 2% of the respondents told that mileage is less important.
5. 0% of the respondents told that mileage is least important.

Maintenance

Factor Most More Important Less Least

important important important important

Maintenance 11 15 67 7 0

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Interpretation:

1. 67% of the respondents told that maintenance is important.

2. 15% of the respondents told that maintenance is more important.
3. 11% of the respondents told that maintenance is most important.
4. 7% of the respondents told that maintenance is less important.
5. 0% of the respondents told that maintenance is least important.

Style

Factor Most More Important Less Least

important important important important
Style 18 34 45 3 0

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Interpretation:

1. 45% of the respondents told that style is important.

2. 34% of the respondents told that style is more important
3. 18% of the respondents told that style is most important.
4. 3% of the respondents told that style is less important.
5. 0% of the respondents told that style is least important.

40
FINDINGS, LIMITATIONS
& CONCLUSION OF
STUDY

41
FINDINGS

1. The study shows that 57% respondents already have a bike.

2. The study shows that 38% respondents had knowledge through friends and
family.

3. The study shows that 46% respondents take decision by father for
purchasing bike.

4. The study shows that 65% of respondents purchase bike by loan.

5. Respondents told that brand 52%, color 69%, price 57% are important.

6. Respondents told that mileage 44% is more important.

7. Respondents told that style 45%, pickup 45%, maintenance 67% are
important.

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LIMITATIONS:

1. The project relied on the primary data.

2. Consumer gives very unclear picture.

3. We have a limited time.

4. The study is based on limited sample.

5. It begin my first attempt to undertake such a study, thus the in experience is

also an obstacle to accomplish the project in a proper way.

6. It was also difficult to get proper information from the people because they
were indulging in some activities.

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CONCLUSION:

It is one of the great choices to do practical analysis in industry through this field work. I

got some exposure, knowledge from the resources. And I know about the peaceful setup how

helps the management and worker to succeed in their life. And I thank who all helped me to

finish this project report.

ANNEXURE

QUESTIONNAIRE

Dear sir/madam I am a student of Govt. P.G. college Dharamshala presently doing a project on
“CONSUMER SATISFACTION TOWARDS HERO MOTOCORP LTD. At BRS HERO
AUTHORISED AT PALAMPUR”. I request you to kindly fill the questionnaire below and
assure you that the data generated shall be kept confidential .

Name ………………………………

Address …………………………………

Contact No. …………………

City …………….. Pin ………………………. State ………………..

1. Your age ……………………

2. Education Qualification

Undergraduate

44
 Graduate

Postgraduate

3. Marital Status

Married

Unmarried

4. Occupation

Business

Profession

Student

5. What rating you will give to Hero moto services?

a. Very good
b. Good
c. Average
d. Poor

6. Do you think that this hero motocorp. Ltd.company need to increase their
advertisement activities ?

a) Yes
b) No
7. Do you think this firm have need to increase their service quality ?

a) Yes
b) No
8. Do you think that services of this firm are better than others ?

a) Yes

45
b) No

46
47
BIBLIOGRAPHY:
 REFERENCE

 WEBSITES

1. www.heromotocorp.com

2. www.google.com

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