Sales and

ABSTRACT
Interview through questionnaire method was employed for the research purpose. The
questionnaires were individually administered to each customer to ensure minimum
scope for faulty data entry and error of understanding. This method also gave the
interviewer the scope of entering into a dialogue and understanding the customer’s
perception better.The questionnaire tried to capture the responses of the customers mainly
on the key deliverables, derived from the pilot survey conducted, and a few questions
have been included to gauge the level of satisfaction and to gain insight into customer
expectations.
The interview complemented the primary research tool and helped deliver into details of
responses provided by the customers. This not only validated the responses of the
customers but also helped the interviewer understand the expectations of the customers.In
this study the sampling unit used is the existing customer base of Selection is made from
the list of Customers during the last one year.
In simple random sampling, each member of the target population has the
same chance of being selected for participation in the study. For a sample to truly be a
simple random sample we need to develop a list or sampling frame that includes almost
all of the population, then from this we randomly pull names from the sampling frame
using some kind of random method such as a random number table or a random number
generator. Finally, numbers are assigned to all members of the population and pull the
names of those members whose numbers are pulled from the table or generator.
The biggest advantage to a simple random sample is that we get a pretty good
unbiased sample fairly easily. The biggest downside is that we may not get all elements
of the population that are of interest.
1
CHAPTER-I
INTRODUCTION
2
INTRODUCTION
Customer service
Customer service is the provision of service to customers before, during and after a
purchase.
According to Jamier L. Scott. (2002), “Customer service is a series of activities designed

to enhance the level of customer satisfaction – that is, the feeling that a product or service
has met the customer expectation."
Its importance varies by product, industry and customer; defective or broken merchandise
can be exchanged, often only with a receipt and within a specified time frame. Retail
stores will often have a desk or counter devoted to dealing with returns, exchanges and
complaints, or will perform related functions at the point of sale.
Customer service may be provided by a person (e.g., sales and service representative), or
by automated means called self-service. Examples of self service are Internet sites.
However, In the Internet era, a challenge has been to maintain and/or enhance the
personal experience while making use of the efficiencies of online commerce. Writing in
Fast Company, entrepreneur and customer systems innovator Micah Solomon has made
the point that "Online customers are literally invisible to you (and you to them), so it's
easy to shortchange them emotionally. But this lack of visual and tactile presence makes
it even more crucial to create a sense of personal, human-to-human connection in the
online arena."
Customer service is normally an integral part of a company’s customer value proposition.

In their book Rules to Break and Laws to Follow, Don Peppers and Martha Rogers, Ph.D.
write that "customers have memories. They will remember you, whether you remember
them or not." Further, "customer trust can be destroyed at once by a major service
3
problem, or it can be undermined one day at a time, with a thousand small
demonstrations of incompetence."
From the point of view of an overall sales process engineering effort, customer service
plays an important role in an organization's ability to generate income and revenue. From
that perspective, customer service should be included as part of an overall approach to
systematic improvement.
Some have argued that the quality and level of customer service has decreased in recent
years, and that this can be attributed to a lack of support or understanding at the executive
and middle management levels of a corporation and/or a customer service policy.
Need and Importance of Study-
Increasing competition, ever growing market, easy availability of the finances and
increasing population of young executives, with huge disposable incomes, over the past
few years has substantially increased the sales in the automobile industry. Also, the
competition among the dealers of the products has increased with each trying to
maximize their customer base. This makes it imperative for the dealers to provide the
best of the services and exceed the customer expectations to achieve customer delight and
loyalty.
The study tries to understand the key service parameters and reflect upon the
dysfunctional areas, thus providing the dealer with an insight into the level of customer
satisfaction and changing trends of the customer expectations.
4
OBJECTIVE OF THE STUDY
To study and understand the key service parameters using Customer Satisfaction and
reflect upon the low performing areas in Hero MotoCorp Ltd. (Formerly Hero Honda
Motors Ltd.) (Phoenix Motors Pvt. Ltd).
 To study about the customer satisfaction on the services provided by the dealers.
 To study the opinion of the customers regarding the availability and cost of spare
parts of Hero MotoCorp Ltd.
 To study the opinion of the owners of bikes regarding its features like mileage,
price etc.
 To study the effect of advertisement on the customers to promote the product.
 To study the customer satisfaction with usage of their bikes.
 To study the information resources that the customer using before purchasing the
bike.
5
SCOPE OF THE STUDY
The study aims to measure satisfaction level of the dealers regarding Hero MotoCorp
Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt. Ltd). The area within
which the study was conducted regarding the information the primary data is collected in
the form of questionnaire collected from the dealers in Hyderabad district. To sum up the
project had within the scope of the study in the area of “EFFECTIVENESS of SALES
and SERVICE” of Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.)
(Phoenix Motors Pvt. Ltd)dealers in Hyderabad district for a particular time (2012).
The research measures the experiences of customers. Defines and analyses the
experiences based on key deliverables. Gains insights into Customer expectations.
RESEARCH METHODOLOGY
Date Sources:
Primary Data:
The data is collected directly from each and every customer.
Pilot Survey
A pilot survey was conducted to understand the factors, which would positively
influence the customer. Personal Interviews totaling 20 were conducted for the sales
team, potential customers and the existing customers of Hero MotoCorp Ltd.
(Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt. Ltd). The factors scoring
high in the interviews were considered to be the key deliverables.
Survey Research:
6
The research was done to learn about people’s preferences and satisfaction of the
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt.
Ltd) customer.
Research Methodology:
Questionnaire (primary tool- attachment 1)
Interview through questionnaire method was employed for the research purpose. The
questionnaires were individually administered to each customer to ensure minimum
scope for faulty data entry and error of understanding. This method also gave the
interviewer the scope of entering into a dialogue and understanding the customer’s
perception better.
The questionnaire tried to capture the responses of the customers mainly on the key
deliverables, derived from the pilot survey conducted, and a few questions have been
included to gauge the level of satisfaction and to gain insight into customer expectations.
Unstructured interview
The interview complemented the primary research tool and helped deliver into details of
responses provided by the customers. This not only validated the responses of the
customers but also helped the interviewer understand the expectations of the customers.
Sampling Unit: In this study the sampling unit used is the existing customer base of
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) (Phoenix Motors Pvt.
Ltd). Selection is made from the list of Customers during the last one year.
Sampling Size: Sample size was chosen to be 100.
Sampling Procedure: Simple Random Sampling.
In simple random sampling, each member of the target population has the
same chance of being selected for participation in the study. For a sample to truly be a
7
simple random sample we need to develop a list or sampling frame that includes almost
all of the population, then from this we randomly pull names from the sampling frame
using some kind of random method such as a random number table or a random number
generator. Finally, numbers are assigned to all members of the population and pull the
names of those members whose numbers are pulled from the table or generator.
The biggest advantage to a simple random sample is that we get a pretty good
unbiased sample fairly easily. The biggest downside is that we may not get all elements
of the population that are of interest.
Limitations:
The study is restricted in scope of owing to the following limitations:
 Due to constraint of time only city of Hyderabad is selected and so it cannot claim
to be a comprehensive study of the population.
 The sample size is restricted to 100 respondents.
8
CHAPTER-II
REVIEW OF LITERATURE
9
CUSTOMER SATISFACTION
Concept Identification-
As organizations become increasingly customer focused and driven by demand, the need
to gain customer loyalty and retain their loyalty is critical. Customer satisfaction is the
most effective way to achieve customer loyalty. Customer satisfaction and customer
loyalty share many similar traits. Customer value is the customer’s perception of the ratio
of benefits to what he or she gives to obtain those benefits. The customer Value Triad is a
framework used to understand what it is that customers want. The framework consists of
three parts: (1) perceived product quality, (2) value-based pricing, and (3) perceived
service quality.
Customers are satisfied, when value meets or exceeds expectations. If their expectations
of value are not met, there is no chance of satisfying them. Figuring out what the
customers want, however, is a difficult and complex process. To be able to create and
deliver customer value is important to understand its components. On the most basic
level, value from a customer’s perspective is the ratio of benefits to the risks being taken
while buying the product.
UNDERTAKING THE KEY DELIVERABLES
Human interaction
Customer service is a task, other than proactive selling, that involves interactions with
customers in person, by telecommunications, or by mails. It is designed, programmed and
communicated with two goals in mind: operational efficiency and customer satisfaction.
A typical categorization of the services based on who performs the action within the
services cape can be
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1. Self-service (customer only)- ATM, Movie Theater
2. Interpersonal services-banks, restaurants
3. Remote services (employee only) – telephone mail order desk.
The superiority of the product has to be complemented with a high quality of services,
which gives a competitive edge to the organization. A high standard of service is what
sets apart one organization from another, and ultimately attracts the customer to the
doorsteps.
Services at the showroom fall in the second category where there is a high complexity of
interaction and hence it becomes necessary for the personnel to be adept in responding to
the customer cognitively, emotionally and psychologically.
The various aspects and characteristics of service provision, which have been taken into
consideration of a customer bikee team/ sales consultant are
1. Politeness
2. Courteousness
3. Product knowledge
4. Process knowledge
5. Communication skills
6. Responsiveness and supportiveness.
Product information
Consumers obtain information about products and services from personal sources (friends
and experts) and from the non-personal sources (mass and selective media).
When purchasing goods, consumers employ both personal and non-personal sources
since both effectively convey information about search qualities.
This is especially true for high involvement products such as bikes, two-wheelers,
durables etc.
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Mass media can convey information about search qualities but can convey a little about
experience qualities. Also, mass media cannot elaborate on the finer aspects and hence it
becomes imperative for a showroom to provide the complete information about the
product, pricing and the offers.
The showroom can provide information by adopting the below mentioned list
1. Broachers, leaflets and pricelists – easy reference and handy.

2. Sales consultant
3. Test drive – hands-on experience.
Broachers, leaflets and pricelist are the basic sales tools, which elaborately give the
product specifications, promotional offers and schemes at hand and the pricing of various
models at display.
Sales consultant has to be knowledgeable to understand the nuances of the specification

and should be able to convey the same to the prospective customers. The sales
consultants handle the various queries (technical and commercial) and clears the
impending doubts of the inquisitive customer.
Test drive – the last part in providing information to the customer and gives the customer
a hands – on experience of the product performance
Time and Promptness.
One of the factors, which has to match the eagerness and the enthusiasm of the customer
is quick and prompt delivery of the service.
After the customer has made a decision to go ahead with the purchase the next logical
sequence of steps would be a process the required documents, book the order, confirm the
order, inform the customer about the date of delivery and prepare the required documents
for the delivery of the vehicle.
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Order booking-This is the process where the onus lies completely on the personnel
dealing with the customer. The customer has to be given the right information regarding
the documents, time taken to process the documents and close the deal.
It is also the responsibility of the various departments involved to provide a quick service
to ensure that the customer has a good and satisfying experience.
Delivery on date and time- once the product is delivered it can be assumed that a sale has
been done. The paper work to be bikeried out has to be done at a quick pace. This can be
observed in the responses of those 25% of customers who reported a slack in the delivery
process. Deviation from promised date and time can lead to a lot of inconvenience to the
customers, thereby leading to a bad experience.
Consistency
“Nothing is consistent by change.”
Consistency is a matter of experience. The expectation of service grows from every

experience the customer has during the sales process. For eg., the customer would expect
the same responsiveness from the sales person during the order processing as it was
during the pre-sales, any aberration would create a sense of insecurity and would thereby
breach the bond of trust established between them.
Inconsistency in service is caused by ever changing expectations of the customer. This

poses a challenge of maintaining the quality of service in every “encounter”. The
expectations are not just related to the profile of the customer but also to the occasion and
moods, service firms find it difficult to meet the expectations of the customers all the
time without affecting the quality of service.
Furthermore, the characteristic of perish ability makes the service non-storable. They

exist while they are being delivered / consumed. This poses the management, problem of
managing the match and capacity planning.
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In the analysis we have chosen to analyze the consistency maintained in offering services
relating to the human interaction as well as the processing of the documents. This
becomes important in the light of these services being offered in pre-sales and post sales
scenario, and gauging the consistency levels at these two stages gives a fair idea of the
consistency maintained in the services offered.
Consistency in human interaction is observed in the pre-sales, order processing and post
sale stages.
Convenience
The objective of the customer bikee personnel is to provide convenient and comfortable
service and not to push the customer to make the purchase. While basic facilities are
made available, the customer bikee personnel have to make sure that customer doesn’t
feel any inconvenience while the sales process is on.
Convenience does not only refer to the physical comforts such as seating, availability of
rest rooms etc. but also to mental convenience a in helping out the customer to reach a
decision, providing relevant information to the customer for evaluating the various
options, making sure that it is one-stop shop (additional accessories being made available
like stereo systems, reverse gear buzzers etc.) explain the basic functionally of the
product etc.
It is helpful to offer customers information in printed form; good signing is very

important at service delivery points and on self-service equipment. The customer bikee
personnel have to make the first move and approach the visitors instead of making the
visitors ask for some guidance. The visitors have to be communicated how to use and
how not to use the facilities at offer.
The concentration has been focused on checking the convenience of the customers on
aspects such as
1. Timings
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2. Test drive
3. Availability of accessories
4. Sufficient fuel to reach the nearest petrol station
5. Wide range of finance options made available at the showroom
6. Imparting the basic mechanical functionalities of the bike.
CUSTOMER SATISFACTION
AN INSIGHT
According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print

more frequently than any other catch phrase used to describe a new found magic for
industrial success. Before we proceed in to the study of the dynamics of Customer
Satisfaction it is important to know about, who a customer is and what satisfaction really
means.
Who really is a Customer?
The question of defining who your customers are seems fairly easy particularly if you
have segmented your market properly and understand who you are trying to
satisfy. However subtlety that frequently goes undetected by many firms is that is that
customer set can be divided into two parts, the apparent customer and the user. The
apparent customer is the person or group of people who decide what product to buy and
basically have control over the purse strings. The user is a person or group who
physically uses the product or is the direct recipient of a service.
What does satisfaction really mean?
As in defining customer above, defining satisfaction also appears simple. However as

with customer there is a subtlety that needs addressing. Satisfaction by most definitions
simply means meeting the customer’s requirement.
Customer satisfaction is a concept that more and more companies are putting at the heart
of their strategy, but for this to be successful they’re needs to be clarity about, what
15
customer satisfaction means and what needs to happen to drive improvement. Without
this, there is a risk that customer satisfaction becomes little more than a good intention,
with confused objectives failing to address the real issues for customers, one helpful way
to look at the problem is to rephrase the objectives: set the sights on helping the
customers meet their goals.
Customer satisfaction can be defined in many different ways. Finding the right way for a
company depends on understanding your customer and on having a clear vision of the
role that customer satisfaction is to play in the strategy. For example, a focus on customer
satisfaction can work alongside existing segmentations to support revenue generation
from high value customers or it can be a company-wide objective rooted in the brand
values. For the former, it may be sufficient to focus on improving customer service, but
for the latter a broader definition of customer satisfaction is necessary, closer akin to
corporate reputation.
Whatever the strategy for customer satisfaction, it must at least include getting the basics
right. Failing to achieve this can destroy the reputation as well as losing valuable
customers. Every customer, regardless of their economic worth to the business, has the
power to influence – positively or negatively – a company’s reputation. Once the
objectives for the customer satisfaction strategy are defined there are a number of steps
we can take to make sure the focus on customer satisfaction is effective.
Building a company around Customer Satisfaction -
With the increase in customer’s demands and competition it has become a lot more
important to base the entire company on customer service. When doing this one must first
realize that every member of an organization plays an active role in customer
service. This includes both external customers and internal customers within a company.
Customer focused organizations focus both on customer satisfaction and

profit. Achieving customer satisfaction generates the profit. In these organizations top
management has frequent contacts with external customers. The top management uses
consultative, participative, and supportive management styles to get through to the
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customer. The staff focuses all of its attention on satisfying the customer’s
needs. However, the management’s job is to provide the staff with support necessary to
achieve these goals. The other department and staff in the organization that do not have
direct contact with the external customers deal exclusively with internal customer
satisfaction.
The Influence of the salesperson in Customer Satisfaction-
In an article titled, “The influence of salesperson selling behavior on customer

satisfaction with products,” Brent G.Goff and James S. Boles examine the effects of non-
product related construct on customer satisfaction with major retail purchases such as
automobiles. The article states that salesperson’s selling orientation- customer orientation
(SOCO) will affect not only consumer satisfaction with the salesperson and dealer, but
also indirectly, satisfaction with the product or manufacturer.
In the perspectives of both the retailer and the manufacturer, customer satisfaction
represents an important issue because it relates to several desirable outcomes. Customer
satisfaction leads to future purchases, and repeated purchases of the same product from
the same source. In other words, it helps a firm retain its present customers and build
loyalty. By helping a buyer obtain product information and providing guidelines about
what should be expected during the buying process and use of a product, a salesperson
may influence customer expectations concerning the product. Thereby this may reduce
the likelihood of dissatisfaction (Grewal and Sharma, 1991). A successful salesperson
tailors to the needs of each individual customer. By being customer-oriented, a
salesperson is likely to identify with needs of the customer, enabling the salesperson to
match his or her presentation to those requirements of the customer.
Internal Marketing – how it affects Customer Satisfaction –
Successful companies make every effort to ensure satisfaction to their customer by

focusing all organizational efforts of the company on providing superior customer
service. By doing this these companies hope to retain their existing customers and attract
17
new ones. Only angle of customer satisfaction commonly overlooked is the internal
aspect.
The internal customer or employee plays a vital role in achieving customer satisfaction
and loyalty. Some firm’s do not understand that the treatment of internal customers
becomes the external customers’ perception of the company. A firm’s employees or other
departments within the organization make up its internal customers. Their job
performance affects the firm’s ability to deliver superior product and customer service
(Boone and Kurtz, 1999). When a firm’s employees are happy at work, their overall
attitude and performance towards the customer enhances tremendously. Internal
marketing helps members or employees of an organization understand and fulfill their
roles in implementing its marketing strategy. Internal marketing not only keeps
employees happy, it also shows them how their actions affect the firm’s ability to achieve
customer satisfaction.
Customer Satisfaction as part of Service Profit Chain:
A Harvard Business Review article outlines the internal process required to drive growth
and increase profitability. The article describes the ways in which service quality
contributes to success, outlining the steps in the “Service-profit chain”:
Profitability / Growth
Customer Loyalty
Customer Satisfaction
Value
Employee Productivity
Employee Loyalty
Internal Quality
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Leadership
Customer service is the provision of service to customers before, during and after a
purchase.
According to Jamier L. Scott. (2002), “Customer service is a series of activities designed

to enhance the level of customer satisfaction – that is, the feeling that a product or service
has met the customer expectation."
Its importance varies by product, industry and customer; defective or broken merchandise
can be exchanged, often only with a receipt and within a specified time frame. Retail
stores will often have a desk or counter devoted to dealing with returns, exchanges and
complaints, or will perform related functions at the point of sale.
Customer service may be provided by a person (e.g., sales and service representative), or
by automated means called self-service. Examples of self service are Internet sites.
However, In the Internet era, a challenge has been to maintain and/or enhance the
personal experience while making use of the efficiencies of online commerce. Writing in
Fast Company, entrepreneur and customer systems innovator Micah Solomon has made
the point that "Online customers are literally invisible to you (and you to them), so it's
easy to shortchange them emotionally. But this lack of visual and tactile presence makes
it even more crucial to create a sense of personal, human-to-human connection in the
online arena."
19
Customer service is normally an integral part of a company’s customer value proposition.
In their book Rules to Break and Laws to Follow, Don Peppers and Martha Rogers, Ph.D.
write that "customers have memories. They will remember you, whether you remember
them or not." Further, "customer trust can be destroyed at once by a major service
problem, or it can be undermined one day at a time, with a thousand small
demonstrations of incompetence."
From the point of view of an overall sales process engineering effort, customer service
plays an important role in an organization's ability to generate income and revenue. From
that perspective, customer service should be included as part of an overall approach to
systematic improvement.
Some have argued that the quality and level of customer service has decreased in recent
years, and that this can be attributed to a lack of support or understanding at the executive
and middle management levels of a corporation and/or a customer service policy.
Instant feedback
Recently, many organizations have implemented feedback loops that allow them to
capture feedback at the point of experience. For example, National Express, one of the
UK's leading travel companies invites passengers to send text messages whilst riding the
bus. This has been shown to be useful as it allows companies to improve their customer
service before the customer defects, thus making it far more likely that the customer will
return next time.
Setting the right KPIs
A challenge working with Customer Service is to ensure that you have focused your
attention on the right key areas, measured by the right Key Performance Indicator. There
is no challenge to come up with a lot of meaningful KPIs, but the challenge is to select a
few which reflects your overall strategy. In addition to reflecting your strategy it should
also enable staff to limit their focus to the areas that really matter. The focus must be of
those KPIs, which will deliver the most value to the overall objective, e.g. cost saving,
20
service improving etc. It must also be done in such a way that staff sincerly believe that
they can make a difference with the effort.
One of the most important aspects of a customer service KPI is that of what is often
referred to as the "Feel Good Factor". Basically the goal is to not only help the customer
have a good experience, but to offer them an experience that exceeds their expectations.
Several key points are listed as follows:
1. Know your product - Know what products/service you are offering back to front. In
other words be an information expert. It is okay to say "I don't know", but it should
always be followed up by... "but let me find out" or possibly " but my friend knows!"
Whatever the situation may be, make sure that you don't leave your customer with an
unanswered question.
2. Body Language/Communication - Most of the communication that we relay to others

is done through body language. If we have a negative body language when we interact
with others it can show our lack of bikee. Two of the most important parts of positive
body language are smiling, and eye contact. Make sure to look your customers in the eye.
It shows that we are listening to them, not at them. And then of course smiling is just
more inviting than someone who has a blank look on their face.
3. Anticipate Guest Needs - Nothing surprises your customer more than an employee
going the extra mile to help them. Always look for ways to serve your customer more
than they expect. In doing so it helps them to know that you bikee and it will leave them
with the "Feel Good Factor" that we are searching for.
Standardization
There are few standards on this topic. ISO and The International Customer Service
Institute (TICSI) have published the following ones:
 ISO 9004:2000, on performance improvement

 ISO 10001:2007, on customer service conduct
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 ISO 10002:2004, on quality management in handling customer complaints
 ISO 10003:2007, on dispute resolution
 The International Customer Service Standard (TICSS)
There is also an Information Technology service management standard: ISO/IEC

20000:2005. Its first part concerns specifications and its second part the code of practice.
Sales
A sale is the pinnacle activity involved in selling products or services in return for money
or other compensation. It is an act of completion of a commercial activity.
A sale is completed by the seller or the provider of the goods or services to an acquisition
or appropriation or request followed by the passing of title (property or ownership) in the
item and the application and due settlement of a price, the douche of or any claim upon
the item. The purchaser, though a party to the sale, does not execute the sale, only the
seller does that. To be precise the sale completes prior to the payment and gives rise to
the obligation of payment. If the seller completes the first two above stages (consent and
passing ownership) of the sale prior to settlement of the price, the sale is still valid and
gives rise to an obligation to pay.
Sales techniques
The sale can be made through
 Direct sales, involving person to person contact

 Pro forma sales
 Agency-based
o Sales agents (real estate, manufacturing)
o Sales outsourcing through direct branded representation
o Transaction sales
o Consultative sales
o Complex sales
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o Consignment
o Telemarketing or telesales
o Retail or consumer
 Traveling salesman
o Door-to-door
o To tourists on crowded beach
 Request for proposal – An invitation for suppliers, through a bidding process, to
submit a proposal on a specific product or service. An RFP is usually part of a
complex sales process, also known as enterprise sales.
 Business-to-business – Business-to-business sales are much more relationship
based owing to the lack of emotional attachment to the products in question.
Industrial/Professional Sales is selling from one business to another
 Electronic
o Web – Business-to-business and business-to-consumer
o Electronic Data Interchange (EDI) – A set of standard for structuring
information to be electronically exchanged between and within businesses
 Indirect, human-mediated but with indirect contact
o Mail-order
 Sales Methods:
o Selling technique
o SPIN Selling
o Consultative selling
o Sales enablement
o Solution selling
o Conceptual Selling
o Strategic Selling
o Sales Negotiation
o Reverse Selling
o Paint-the-Picture
o The take away
o Large Account Management Process chocolate kisses
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Sales agents
Agents in the sales process can be defined as representing either side of the sales process;
for example:;Sales broker or 1.Seller agency]] or seller agent:This is a traditional role
where the salesman represents a person or company on the selling end of the deal 2.
Buyers broker or [[Buyer brokerage: This is where the salesman represents the consumer
making the purchase. This is most often applied in large transactions. 3. Disclosed dual
agent:This is where the salesman represents both parties in the sale and acts as a mediator
for the transaction. The role of the salesman here is to oversee that both parties receive an
honest and fair deal, and is responsible to both. 4. Transaction broker:This is where the
salesperson doesn't represent either party, but handles the transaction only. This is where
the seller owes no responsibility to either party getting a fair or honest deal, just that all of
the papers are handled properly. 5. Sales outsourcing: This is direct branded
representation where the sales reps are recruited, hired, and managed by an external
entity but hold quotas, represent themselves as the brand of the client, and report all
activities (through their own sales management channels) back to the client. It is akin to a
virtual extension of a sales force. (see Sales Outsourcing entry) 6. Sales managers:It is the
goal of a qualified and talented sales manager to implement various sales strategies and
management techniques in order to facilitate improved profits and increased sales
volume. They are also responsible for coordinating the sales and marketing department as
well as oversight concerning the fair and honest execution of the sales process by his
agents 7.Salesmen: The primary function of professional sales is to generate and close
leads, educate prospects, fill needs and satisfy wants of consumers appropriately, and
therefore turn prospective customers into actual ones. The successful questioning to
understand a customer's goal and requirements relevant to the product, the further
creation of a valuable solution by communicating the necessary information that
encourages a buyer to achieve their goal at an economic cost is the responsibility of the
salesperson or the sales engine (e.g. internet, vending machine etc). A good salesman
should never mis-sell or over-evaluate the customer's requirements.
The sales and marketing relationship
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Marketing and sales are very different, but have the same goal. Marketing improves the
selling environment and plays a very important role in sales. If the marketing department
generates a potential customers list, it can be beneficial for sales. The marketing
department's goal is to increase the number of interactions between potential customers
and company, which includes the sales team using promotional techniques such as
advertising, sales promotion, publicity, and public relations, creating new sales channels,
or creating new products (new product development), among other things. It also includes
bringing the potential customer to the company's website for more information, or to
contact the company for more information, or interact with the company via social media
such as Twitter, Facebook, a blog, etc.
The relatively new field of sales process engineering views "sales" as the output of a
larger system, not just that of one department. The larger system includes many
functional areas within an organization. From this perspective, sales and marketing
(among others, such as customer service) are labels for a number of processes whose
inputs and outputs supply one another to varying degrees. Considered in this way, to
improve the "output" (namely, sales) the broader sales process needs to be studied and
improved as would any system, since the component functional areas interact and are
interdependent.
In most large corporations, the marketing department is structured in a similar fashion to

the sales department and the managers of these teams must coordinate efforts in order to
drive profits and business success. For example, an "inbound" focused campaign seeks to
drive more customers "through the door" giving the sales department a better chance of
selling their product to the consumer. A good marketing program would address any
potential downsides as well.
The Sales department's goal would be to improve the interaction between the customer
and the sales facility or mechanism (example, web site) and/or salesperson. Sales
management would break down the selling process and then increase the effectiveness of
the discrete processes as well as the interaction between processes. For example, in many
out-bound sales environments, the typical process is out bound calling, the sales pitch,
25
handling objections, opportunity identification, and the close. Each step of the process
has sales-related issues, skills, and training needs as well as marketing solutions to
improve each discrete step, as well as the whole process.
One further common complication of marketing involves the inability to measure results
for a great deal of marketing initiatives. In essence, many marketing and advertising
executives often lose sight of the objective of sales/revenue/profit, as they focus on
establishing a creative/innovative program, without concern for the top or bottom lines.
Such is a fundamental pitfall of marketing for marketing's sake.
Many companies find it challenging to get marketing and sales on the same page. Both
departments are different in nature, but handle very similar concepts and have to work
together for sales to be successful. Building a good relationship between the two that
encourages communication can be the key to success even in a down economy.
Marketing potentially negates need for sales
Some sales authors and consultants contend that an expertly planned and executed
marketing strategy may negate the need for outside sales entirely. They suggest that by
effectively bringing more customers "through the door" and enticing them to contact you,
sales organizations can dramatically improve their results, efficiency, profitability, and
allow salespeople to provide a drastically higher level of customer service and
satisfaction, instead of spending the majority of their working hours searching for
someone to sell to.
While this theory is present in a few marketing consulting companies the practical and
realistic application of this principle has not been widely proven in the market and sales
forces worldwide continue to be responsible for developing business as well as closing it.
Some marketing consulting firms postulate that each selling opportunity at each
enterprise lies on a continuum of numbers of people involved, necessary degree of face-
to-face interaction, overhead, and through-put time, to name a few dimensions. The
26
number of people involved in actual face-to-face selling at, say, a clothing store is
probably vastly different from that at an on-line book-seller.
In reality, marketing and sales are complementary, and do not negate each other's purpose
or presence. Marketing is a field/process designed to ascertain what consumers
want/value, and accordingly manufacture such goods/services. Marketing is a process
founded on the premise that consumers are king , and thus developing a long-term
relationship with them is key to organisational survival. This is important, considering the
fact that a market economy is demand-led. In contemporary firms, sales is often the end-
point in the marketing process, after the determining of consumer needs, marketing
planning, marketing strategy, marketing research, market segmentation, etc. have been
executed.
In short, a sale often cannot exist in itself. Marketing is used to gauge whether persons
are even potentially willing or able to buy a product; the sale pertains to techniques used
to persuade a person to actually buy it, once they have considered the possibility of
purchasing a good/service in question.
Industrial marketing
The idea that marketing can potentially eliminate the need for sales people is entirely
dependent on context. For example, this may be possible in some B2C situations
however, for many B2B organizations (for example industrial organizations) this is
mostly impossible. Another dimension is the value of the goods being sold. Fast Moving
Consumer Goods (FMCG) require no sales people at the point of sale to get them to jump
off the supermarket shelf and into the customer's trolley. However, the purchase of large
mining equipment worth millions of dollars will require a sales person to manage the
sales process. Particularly in the face of competitors.
Sales and marketing alignment and integration
Another key area of conversation that has arisen is the need for alignment and integration
between corporate sales and marketing functions. According to a report from the Chief
27
Marketing Officer (CMO) Council, only 40 percent of companies have formal programs,
systems or processes in place to align and integration between the two critical functions.
Traditionally, these two functions, as referenced above, has been largely segmented and
left in siloed areas of tactical responsibility. In Glen Petersen’s book, “The Profit
Maximization Paradox,” the changes in the competitive landscape between the 1950s and
today are so dramatic that the complexity of choice, price and opportunities for the
customer forced this seemingly simple and integrated relationship between sales and
marketing to change forever. Petersen goes on to highlight that salespeople are spending
approximately 40 percent of their time preparing customer-facing deliverables while
leveraging less than 50 percent of the materials created by marketing, adding to the
perception that marketing is out of touch with the customer, and sales is resistant to
messaging and strategy.
Internet applications, commonly referred to as Sales 2.0 tools, have also increasingly
been created to help align the goals and responsibilities of marketing and sales
departments.
Sales intelligence
The term Sales intelligence (SI) refers to technologies, applications and practices for the
collection, integration, analysis, and presentation of Sales information. The purpose of
Sales intelligence is to support better business decision making by sales people. It dates
back to 1996 when the original product was developed by a company called Vecta Sales
Solutions Ltd. (Part of the Edp Group)
SI describes a set of concepts and methods to improve Sales Performance and decision
making by using fact-based Transaction information. SI is usually integrated or includes
(CRM) Customer Relationship Management. Sales Intelligence systems are data-driven.
Sales Intelligence is similar to Business Intelligence (BI) but is specifically designed for
the use of Sales People and Sales Managers.
28
Sales intelligence solutions are predominantly designed for companies in the
manufacturing, distribution and wholesale sectors. These are highly competitive markets,
where volumes are high, margins are low.
(SI) solutions provide unique insight into customer buying patterns. By automatically
analysing and evaluating these patterns, Sales Intelligence pro-actively identifies and
delivers up-sell, cross-sell and switch-sell opportunities.
Most good Sales Intelligence products will inform you if there's a potential customer drift
issue, so you can address the situation before it becomes a problem.
Unlike customer relationship management (CRM) and traditional business intelligence

(BI) applications, Sales Intelligence analyses your existing sales data to pro-actively
deliver actionable, relevant information.
29
CHAPTER-III
INDUSTRIAL PROFILE
&
COMPANY PROFILE
30
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.
31
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
32
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
33
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:
34
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.
35
COMPANY PROFILE
36
CORPORATE PROFILE
About Company
Hero Motocorp Ltd. (BSE: 500182, NSE: HEROMOTOCO) 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.[4]
The company is the largest two wheeler manufacturer in India. [5] The 2006 Forbes 200
Most Respected companies list has Hero Honda Motors ranked at 108.[6]
In 2010, When Honda decided to move out of the joint venture, [7] Hero Group bought the
shares held by Honda.[8] Subsequently, in August 2011 the company was renamed Hero
MotoCorp with a new corporate identity.[9] On 4th June 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 Motor. [10]
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 own 26% stake in the Company. In 2010, it was reported
that Honda planned to sell its stake in the venture to the Munjal family.
37
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 - Forget it' that emphasised 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 [11]
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.[12] 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,[13] 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. In addition, to cope
with the new demand over the coming half decade, the company was going to build their
fourth factory in South India and their fifth factory in Western India. There is no
confirmation where the factories would be built.
Vision
The Hero Honda story began with a simple vision – the vision of a mobile and an
empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s
commitment to customer, quality and excellence, and while doing so, maintaining the
highest standards of ethics and societal responsibilities. Hero Honda believes that the
fastest way to turn that dream into a reality is by remaining focused on that vision.
Strategy
Hero Honda’s key strategy has been driven by innovation in every sphere of activity –
38
building a robust product portfolio across categories, exploring new markets,
aggressively expanding the network and continuing to invest in brand building activities.
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 Uttrakhand.
Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment
friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be
technology pioneer. 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.
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 2006. 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 Honda's extensive
sales and service network now spans close to 4500 customer touch points. These
comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-
appointed outlets across the country.
Brand
39
The company has been continuously investing in brand building utilizing not only the
new product launch and new campaign launch opportunities but also through innovative
marketing initiatives revolving around cricket, entertainment and ground- level
activation.
Hero Honda has been actively promoting various sports such as hockey, cricket and golf.
Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was
played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth
Games Delhi 2010.
2010-11 Performance
Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per
share on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54
2009-10 Performance
Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent
HERO HONDA'S MISSION
40
Hero Honda’s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.
This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.
HERO HONDA'S MANDATE
Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting
edge technology from Honda Motor Company, Japan. The teamwork and commitment
are manifested in the highest level of customer satisfaction, and this goes a long way
towards reinforcing its leadership status
BOARD OF DIRECTORS
No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director & C.E.O.
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Sumihisa Fukuda Technical Director
5 Mr. Sunil Kant Munjal Non-Executive Director
6 Mr. Suman Kant Munjal Non-Executive Director
7 Mr. Takashi Nagai Non-Executive Director
41
8 Mr. Yuji Shiga Non-Executive Director
9 Mr. Pradeep Dinodia Non-executive & Independent

Director
10 Gen. (Retd.) V. P. Malik Non-executive & Independent

Director
11 Mr. Analjit Singh Non-executive & Independent

Director
12 Dr. Pritam Singh Non-executive & Independent

Director
13 Ms. Shobhana Bhartia Non-executive & Independent

Director
14. Mr. M. Damodaran Non-executive & Independent

Director
15. Mr. Ravi Nath Non-executive & Independent

Director
16. Dr. Anand C. Burman Non-executive & Independent

Director
BRIEF PROFILE OF DIRECTORS
MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and
the $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry
(CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the
Board of the Country's Central Bank (Reserve Bank of India). In recognition of his
contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the
Union Government.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies:
42
No. Name of Company Nature of Office
1 Hero Honda Motors Limited Chairman and Whole-time Director
2 Hero Honda Finlease Limited Chairman and Director
3 Munjal Showa Limited Chairman and Director
4 Easy Bill Limited Director
5 Rockman Industries Limited Director
6 Shivam Autotech Limited Director
KEY MILESTONES OF HERO HONDA

Year Event
1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984 Hero Honda Motors Ltd. Incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing
Director, Mr. Raman Kant Munjal
1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced
1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998 2,000,000th motorcycle produced
43
1999 New motorcycle model - "CBZ" introduced
Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal
2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched
2001 New motorcycle model - "Passion" introduced

One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced
2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer
Khan as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar year in a
row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
44
Total sales crossed a record of 10 million motorcycles
2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced
15 million production milestone achieved
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
CD Deluxe lauched with power start feature
New 'Glamour' launched
2009 Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
2010 Silver jubilee celebrations
New model Splendor Pro launched
45
2011 Launch of new Super Splendor and New Hunk
New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year
PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions
Two-wheeler Manufacturer of the Year award by Bike India magazine.

2011 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
2010
Trusted Brand" 2011 survey
Company of the Year awarded by Economic Times Awards for Corporate Excellence
2008-09.
CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor
NDTV Profit Car & Bike Awards 2010 -

 Two-wheeler Manufacturer of the Year
 CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)
Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009
46
2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009
and Passion Pro adjudged as CNB Viewers' Choice two-wheeler
Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun &
Bradstreet-Rolta Corporate Awards
Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category
NDTV Profit Business Leadership Awards 2009 - two-wheeler category
2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted
"NDTV Profit Business Leadership Award 2008"
TopGear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice Award” to
Hunk in Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty
Awards - “Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector
Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of
business innovation and transformation) - Best Customer Loyalty Program in
Automobile category
NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year
Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:
 No.1 executive motorcycle Splendor NXG
 No.1 standard motorcycle CD Deluxe
 No. premium motorcycle CBZ Xtreme
2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
 Overall "Bike of the Year" - CBZ X-treme
 "Bike of the Year" - CBZ X-treme (up to 150 cc category)
 "Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.
"Bike of the Year" - CBZ X-treme by Overdrive Magazine.
47
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer
Awards 2006.
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most reputed
companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award.
Best in its class awards for each category by TNS Total Customer Satisfaction
Awards 2006:
 Splendor Plus (Executive)
 CD Deluxe (Entry)
 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006.
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006.
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04 for
two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export
Promotion Council.
The NDTV Profit Car India & Bike India Awards 2006 in the following category:
 Bike Maker of the Year
 Bike of the Year - Achiever
 Bike of the Year - Achiever (up to 150 cc category)
48
 Bike of the Year - Glamour (up to 125 cc category)
 NDTV Viewers' Choice Award to Glamour in the bike category
CORPORATE SOCIAL RESPONSIBILITY (CSR)
STAKEHOLDER TIES AT THE GRASSROOTS
Hero Honda Motors takes considerable pride in its stakeholder relationships, especially
ones developed at the grassroots. The Company believes it has managed to bring an
economically and socially backward region in Dharuhera, Haryana, into the national
economic mainstream.
An Integrated Rural Development Centre has been set up on 40 acres of land along the
Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and
education facilities for both adults and children-now nurtures a vibrant, educated and
healthy community.
The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:
 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
 Renovating primary school buildings and providing hygienic water and toilet
facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-
logging.
 Promoting non-conventional sources of energy by providing a 50 per cent subsidy
on biogas plants.
49
The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55
students from nearby areas. It has now grown into a modern Senior Secondary, CBSE
affiliated co-educational school with over 1200 students and 61 teachers. The school has
a spacious playground, an ultra-modern laboratory, a well-equipped audio visual room,
an activity room, a well-stocked library and a computer centre.
The Raman Munjal Sports Complex has basketball courts, volleyball courts, and
hockey and football grounds are used by the local villagers. In the near future, sports
academies are planned for volley ball and basket ball, in collaboration with National
Sports Authority of India.
Vocational Training Centre
In order to help local rural people, especially women, Hero Honda has set up a
Vocational Training Centre. So far 26 batches comprising of nearly 625 women have
been trained in tailoring, embroidery and knitting. The Company has helped women
trained at this centre to set up a production unit to stitch uniforms for Hero Honda
employees. Interestingly, most of the women are now self-employed.
Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36
adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another
100 adults by getting village heads and other prominent villagers to motivate illiterate
adults.
Marriages of underprivileged girls
Marriages are organized from time to time, particularly for girls from backward classes,
by the Foundation by providing financial help and other support to the families.
Rural Health Care
50
Besides setting up a modern hospital, the Foundation also regularly provides doorstep
health care services to the local community. Free health care and medical camps are now
a regular feature in the Hero Group's community outreach program
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE
COMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of
the way in making your world a better place to live in. Besides its will to provide a high-
quality service to all of its customers, Hero Honda takes a stand as a socially responsible
enterprise respectful of its environment and respectful of the important issues.
Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the
economic concerns and the environmental and social issues faced by a business. A
business must not grow at the expense of mankind and man's future but rather must serve
mankind.
"We must do something for the community from whose land we generate our
wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
We at Hero Honda are committed to demonstrate excellence in our environmental
performance on a continual basis, as an intrinsic element of our corporate philosophy.
To achieve this we commit ourselves to:
 Integrate environmental attributes and cleaner production in all our business
processes and practices with specific consideration to substitution of hazardous
chemicals, where viable and strengthen the greening of supply chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
 Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
51
 Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.
Quality Policy
Excellence in quality is the core value of Hero Honda's philosophy.
We are committed at all levels to achieve high quality in whatever we do, particularly in
our products and services which will meet and exceed customer's growing aspirations
through:
 Innovation in products, processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.
Safety Policy
Hero Honda is committed to safety and health of its employees and other persons
who may be affected by its operations. We believe that the safe work practices lead to
better business performance, motivated workforce and higher productivity.
We shall create a safety culture in the organization by:
 Integrating safety and health matters in all our activities.
 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and
contractors.
 Continuous improvements in safety performance through precautions besides
participation and training of employees.
52
INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX
MOTORS)
PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS
PVT LTD. is established on 21st march 2003. The business is running by only one man.
The owner name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.
Generally the sale will be either on cash basis or on institutional basis. Bank
like ICICI, HDFC and CENTURION are providing loans to customers.
Advertising strategy of phoenix motors:
They are giving the ads through newspapers, wall paintings, hoardings
and field staff. They are upgrading sales by introducing the schemes, group bookings,
institutional sales and customer door-to-door activities.
Categorization of Staff members:
Staff members are categorized for technicians, 25 members are
allotted for field staff, 5 members are recruited for sales for persons, 5 persons are placed
for evaluating for spare parts, 5 members are allotted for managerial accounts and another
3 persons for cash transaction and other members are allotted for remaining work.
Customer relationship:
They entertain the showroom providing a customer’s huge having
pool game, internet facility and television with home there system. They provide bile
maintenance programs on every week.
53
According to other dealers PHOENIX motors in first in sales and best in service. They
treat customer, is the very important person at PHOENIX motors customer satisfaction is
their motto, why because, they will satisfied customer is the best advertisement. They
provide better value for the customers and as well as employees also. At PHOENIX
motors the customer is the boss.
SALES STRATEGY OF PHOENIX MOTORS:
Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.D
is the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader
through quality dealer). At PHOENIX motor they gave the quality service to the
customers why because ‘the cost is long forgotten but the quality is remembered for
ever”. They treat quality has a...
Q Quest for excellence
U Understanding customer’s needs
A Action to achieve customer’s appreciation.
L Leadership determined to be a leader
I involving all the people
T Team spirit to work for a common goal
Y Yard sticks to measure programs.
WARRANTY ON PROPRIETARY ITEMS:
Warranty on proprietary items like Tyros, Tubes and Battery etc, will be
directly handled by the respective original manufactures (OEM’s) except AMCO for
batteries and Dunlop and Falcon tires and Tubes. In case of any defect in proprietary
54
items, other than the above two mentioned OEM’S the dealers must approach the Brach
office dealer of the respective manufacture. For AMCO batteries and Dunlop and falcon
tires, tubes claims will be accepted at our authorized dealerships per the mutually agreed
terms and conditions between HERO HONDA and of these two OEM’s in case the claim
is not accepted for invalid reasons. Then the claim along with the refusal note form the
OEM can be sent to the warranty section at gorgon plan after due to recommendation of
the area service engineer. If any other six services or subsequent paid services is not
availed as per the recommended schedule given in the owner’s manual. If HERO
HONDA recommended engine oil is not used. To normal wear & tear components like
bulbs, electric wiring, filters, spark plug, clutch plates, braded shoes, fasteners, shim
washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic components,
chain$ sprockets and in case of wheel rim misalignment or bend.
If there is any damage due o modification or fittings of accessories other than ones
recommended by HERO HONDA. If the motor has been used in any competitive events
like tracking races or rallies. If there is any damage to the painted surface due to
industrial pollution or other extraneous factors. For clams made for any consequential
damage due to any previous malfunction. For normal phenomenon like noise, vibration,
oil seepage, which do not affect the performance of the motorcycles.
SOCIAL SERVICE ACTIVITIES
PHOENIX motors participate and conduct social service activities. Recently the
phoenix motors organized a BLOOD DONATION CAMP for the trust on 21 st January
55
2006.they motivated on the consumers to participated in this camp and also provide
certificate for the customers
THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

56
57
58
59
CUSTOMER RELATIONSHIP:
To entertain the customers the showroom providing a customers huge having pool
game, Internet facility and television with home theatre system. They provide bike
maintenance programs on every week. According to other dealers PHOENIX motors in
first in sales and best in service. They treat customer, is the very important person at
PHOENIX motors customer satisfaction is their motto, why because, the well satisfied
customer is the best advertisement. They provide better value for the customers and as
well as employees also. At PHONIX motors the customer is the boss.
SOCIAL SERVICE ACTIVITIES
PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on
the customers to participated in this camp and also provide Certificate for the customers.
60
CHAPTER-IV
DATA ANALYSIS& INTERPRETATION
61
What is the model of BIKE used by customers?
A) SPLENDER +
B) PASSION +
C) GLAMOUR
D) CBZ X-TREME
E) KARIZMA
S.No Models No.of Respondents Percentage
1 SPLENDER + 37 37
2 PASSION + 37 37
3 GLAMOUR 13 13
4 CBZ X-TREME 10 10
5 KARIZMA 03 03
Total No.of Respondents 100 100%
Interpretation:
It is observed that 37% of the total respondents use SPLENDER+, 37% of
the respondents use PASSION+,13% of the respondents use HEROHONDA
GLAMOUR,10% of the respondents use HEROHONDA CBZ-XTREM and last 03% of
respondents use HEROHONDA KARIZMA model.
62
2. Which type of BIKE have you bought?
A) New
B) Pre Owned
S.No Buyers No. of Respondents Percentage
1 New 94 94
2 Pre Owned 6 6
Total No. of Respondents 100 100%
100 94
90
80
70
60
50
40
30
20
10 6
0
New Pre Owned
63
Interpretation:
From the survey conducted it is observed that 94% of the respondent’s purchased
new bikes and 6% of the respondent’s purchased Pre Owned bikes.
3. Whether the price of the Vehicle is?

A) Affordable
B) Not Affordable
S.No Price No. of Respondents Percentage
1 Affordable 85 85
2 Not Affordable 15 15
64
15%
Affordable
Not Affordable
85%
Interpretation:
It is observed that 85% of the people feel that the price of vehicle is affordable,
and 15% of people feel that the price of vehicle is not affordable.
4. What is the purpose of buying this BIKE?

A) Personal use
B) Other use
S.No Purpose of buying No. of Respondents Percentage
1 Personal use 87 87
3 Other use 13 13
65
Interpretation:
From the data collected it is observed that 87% of the customers use their vehicle
for personal use, 13 % of the buyers use for other use.
5. Who influenced in buying this BIKE?

A) Your self
B) Family
C) Friends
D) Advertisement
66
S.No Influenced No. of Respondents Percentage
1 Your self 48 48
2 Family 32 32
3 Friends 12 12
4 Advertisement 8 8
48
50
45
40
35 32
30
25
20
15 12
8
10
5
0
Your self Family Friends Advertisement
Interpretation:
67
From the study it is observed that 48% is influenced by themselves, 36% feel that
the family place a vital role to purchase there vehicle, and then comes to friends 12% and
then advertisement 8%.
6. What does this BIKE convey?

A) Status
B) Necessity
C) Comfort
D) Other
S.No Car Conveys No. of Respondents Percentage
1 Status 24 24
2 Necessity 54 54
3 Comfort 18 18
4 Other 04 04
4
Other
18
Comfort
54
Necessity
24
Status
0 10 20 30 40 50 60
Interpretation:
68
From the data collected it is concluded that 24% of the consumers purchase the
vehicle to maintain the status, where as 54% of the consumers purchase the vehicle
because of their necessity. 18% of the consumer’s purchases as it give comfort, 12% of
the consumer purchase the vehicle for other reason.
7. What are the reasons for buying this BIKE?
A) Price
B) Mileage
C) Service
D) Brand Image
S.No Crucial No. of Respondents Percentage
1 Price 34 34
2 Mileage 53 53
3 Service 7 7
4 Brand Image 6 6
69
60
53
50
40 34
30
20
10 7 6
0
Price Mileage Service Brand Image
Interpretation:
It is concluded from the study that 34% of them say that price is crucial,
53% of them say mileage and 7% & 6% of them say service and brand image.
8. You use your BIKE mostly for?

A) Office
B) Family
C) Long drives
D) Shopping
S.No Car used for No. of Respondents Percentage
1 Office 44 44
2 Family 45 45
3 Long Drives 9 9
4 Shopping 2 2

70
Shopping 2
9
Long Drives
45
Family
Office 44
0 10 20 30 40 50
Interpretation:
It was observed that 44% of the respondents use there vehicle for going to
office, 45% of the respondents use there vehicle to take there family out and
2% and 9% of the respondents use there vehicle of shopping and long drives.
9. How long you will use this vehicle?

A) 1-2 years
B) 2-4 years
C) 4-8 years
D) 8 years & above
71
S.No How long you will No. of Respondents Percentage
use
1 1-2 years 5 5
2 2-4 years 15 15
3 4-8 years 68 68
4 8 years & above 12 12
80
68
70
60
50
40
30
20 15
12
10 5
0
1-2 years 2-4 years 4-8 years 8 years &
above
Interpretation:
From the study it is observed that 5%and 15% of the consumer keep their
vehicle 1-2 years and 2-4 years and 68% and 12% of consumers keep their
vehicle for 4-8 years and 8 years &above.
72
10. Rate your satisfaction for the service provided by the Organization?
A) Excellent
B) Good
C) O.K
D) Poor
S.No Satisfaction level at No. of Respondents Percentage

service station
1 Excellent 7 7
2 Good 61 61
3 O.K 24 24
4 Poor 8 8
73
8
Poor
24
O.K
61
Good
7
Excellent
0 10 20 30 40 50 60 70
Interpretation:
From the survey conducted satisfied level at service center show at X-axis
and No.Respondents at Y-axis. 7 % of the consumers said excellent, 61% said
good and 24% and 8% of the consumers said ok and poor.
11. Are you satisfied with mileage give by your bike?

A) yes
B) no
S.No Satisfied with No. of Respondents Percentage

mileage
1 Yes 81 81
2 NO 19 19
74
19%
Yes
NO
81%
Interpretation:
It is observed that 81% of the respondents are satisfied with mileage given
by there car and 19% are not satisfied with mileage given by their BIKES.
12. Human Interaction
SNO OPINION POLITE KNOWLEDGE WARRANTY PRESENCE
1 YES 88 90 85 86
2 NO 12 10 15 14
75
3 TOTAL 100 100 100 100
HUMAN INTERACTION
100 88 90
85 86
NO. OF RESPONDENTS
80
60
YES
40
NO
20 12 15 14
10
0
POLITE KNOWLEDGE WARRANTY PRESENCE
PARAMETERS
Inferences
The graph clarity indicates that approximately 90% of the customers are positive about
the human interaction at the showroom.
Interpretation
The personnel score a high 93% (approx.) in being courteous, polite, knowledgeable and
communicating the warranty and schedule but there is a slight decrease in the attention
provided at the time of delivery, which is area to concentrate. Nevertheless, the overall
human interaction is above the acceptable levels.
13. Product Information
SNO OPINION AVAILABILITY KNOWLEDGE TEST DRIVE
76
1 YES 88 86 88
2 NO 12 14 12
3 TOTAL 100 100 100
PRODUCTION INFORMATION
100
NO. OF RE S P ONDE NTS
88 86 88
90
80
70
60
YES
50
40 NO
30
20 12 14 12
10
0
AVAILABILITY KNOWLEDGE TEST DRIVE
PARAMETERS
Inferences
The graph shows that the brochures, leaflets and price list are readily available. Approx.
85% of the customers agree that the sales consultant was knowledgeable and was adept in
handling the queries of the customers. And almost every customer was offered a test
drive (96%).
Interpretation
The showroom scores high in providing the relevant product information and is leaving
no stone unturned to provide the specific information needs of the customers.This also
reflects that the customer bikee personnel are well- equipped with the product
information.At most bikee has been taken to ensure that the customers are provided with
the product information
77
14. Time & Promptness
SNO OPINION FAST PROCESSING DELIVERY AT FAST

AT ORDER PROMISED PROCESSING
AT DELIVERY
1 YES 90 88 92
2 NO 10 12 08
3 TOTAL 100 100 100

N O . O F R ESPO N D EN TS
100 TIME & PROMPTNESS 92

90 88
90
80
70
60
50 YES
40 NO
30
20 10 12
8
10
0
FAST DELIVERY AT FAST
PROCESSING AT PROMISED PROCESSING AT
ORDER DELIVERY
PARAMETERS
Inferences
84% of customers have responded positively about the work being bikeried out
quickly. 25% of the customers are unhappy about the promptness in the delivery of the
vehicle. Approximately 75% of the customers feel that the processing was fast.
78
15. Consistency
Consistency in Human Interaction
SNO OPINION ALTERNATIVES ALTERNATIVES
1 YES 90 88
2 NO 10 12
3 TOTAL 100 100
CONSISTANCY IN HUMAN INTERACTION

NO. OF RESPONDENTS
100 90 88
90
80
70
60
50
YES
40
30 NO
20 10 12
10
0
ALTERNATIVES ALTERNATIVES
PARAMETERS
The customers have responded positively, about 80% (avg.) of them observing that the
processing has maintained a consistent level.
The interaction with the customers has fallen from 93% prior to the sale to 86% after the
sale is done.
Interpretation
79
The showroom maintains a consistency level of 85% (avg. of processing consistency and
consistency in human interaction), which is acceptable.
16. Consistency in processing
SNO OPINIONS ORDER PROCESS DELIVERY
1 YES 86 82
2 NO 14 18
3 TOTAL 100 100
CONSISTANCY IN PROCESSING
100
86
NO. OF RESPONDENTS
90 82
80
70
60
50
YES
40
30 NO
18
20 14
10
0
ORDER PROCESSING DELIVERY
PARAMETERS
Convenience
Inferences
80
The showroom scores a very high percentage in providing convenience to the customers.
Interpretation
Though there are 20% of people who have not utilized the finance option provided by the
showroom, the point to be taken is that 80% of the customers have utilized the options
provided by the showroom.
17. Convenience
SNO OPINION MECHANIC FUEL TEST AVAILABILITY CONVENIENCE
1 YES 82 90 88 86 84
2 NO 18 10 12 14 16
3 TOTAL 100 100 100 100 100
YES
CONVENIENCE
NO
100 90 88
82 86 84
80
RESPONDENTS
60
NO. OF
40
18 14 16
20 10 12
0
MECHANIC FUEL TEST AVAILABILITY CONVENIENCE
PARAMETERS
81
CALCULATION OF SALES SATISFACTION INDEX
Sales satisfaction index is the index of overall satisfaction of Hero MotoCorp Ltd.
(Phoenix Motors Pvt. Ltd) customers as a whole.
The overall satisfaction is the average of the scores of the key variables, which in turn is
the cumulative of the positive responses of the customers, converted to a scale of
ten. The responses of the customers have also been recorded over repeat
purchases, referrals and their satisfaction to cross check with the calculated result.
S.No Key Deliverables Score Score on scale of Ten

1 Human Interaction 210/225 9
2 Product Information 215/225 9
3 Time & Promptness 175/225 7
4 Consistency 254/300 8
5 Convenience 413/450 9
Cumulative Score 42
82
Sales Satisfaction Index
Overall Satisfaction = Average (Cumulative Score)

= 42/5
= 8.4
Sales Satisfaction Index = 8.4 on scale of ten
CHAPTER-V
 FINDINGS & SUGGESTIONS
 CONCLUSION
 BIBLIOGRAPHY
83
 QUESTIONNAIRE
FINDINGS AND SUGGESTIONS
 Hero MotoCorp Ltd. (Phoenix Motors Pvt. Ltd) enjoys a high patronage from
its customers.
 Most of the customers had a good experience of shopping at Hero MotoCorp

Ltd. (Phoenix Motors Pvt. Ltd).
 The satisfaction levels can also measured with the level of recommendations to
friends and associates; It is evident that more than 80% customers are satisfied
with the service offered at Hero MotoCorp Ltd. (Phoenix Motors Pvt. Ltd)
 The probability that the customers would repeat that purchase at the same
showroom is high, which is a good sign.
 The sale satisfaction index of Hero MotoCorp Ltd showroom is 8.4 on scale of ten
which is exceptionally good; the showroom should persist on high levels of
84
commitment to maintain the good image it has created. The industry SSI (2003) is
104 out of 126 according to power Asia pacific. And Hero MotoCorp Ltd.
(Phoenix Motors Pvt. Ltd) scores 105 out of 125.
 In the interview it was found that the customers are happy about the training
programs under taken by the showroom, which train the customers to
negotiate miner breakdowns comfortably.
 It has been observed that 25% of customers have reported a slack in the delivery
process.
This is the only area of concern that has emerged form the city.
CONCLUSION
I, from project conclude that promotion of any service can be successfully
executed by creating awareness through word of mouth and by maintaining the service
according to Advertising and Sales Promotional Activities.
85
BIBLIOGRAPHY
Books:
Principles of marketing: KOTLER ARMSTRONG.
Marketing Management: PHILIP KOTLER.
(Analysis , Planning Implementation and Control)
Services Marketing : TATA Mc GRAHILL.
Marketing Research : G.C.BERI.
Research Methodology : KOTHARI. C.R.
Websites:
www.heromoto.com
86
www.bus.umich.edu
http://www.asq.org
Attachment - 1
SALES SATISFACTION INDEX
Details:
Vehicle No: _______________________________________________________
Model: ___________________________________________________________
Customer Name: __________________________________________________
Telephone No: ______________________Mobile:________________________
Date: __________________Customer signature: ________________________
Was the vehicle purchase under finance option offered in the showroom?
Yes [ 60 ] No [15 ]
If yes, which finance: _____________________________________________________?
1. What is the model of bikes used by customers?
A) SPLENDER +
87
B) PASSION +
C) GLAMOUR
D) CBZ X-TREME
E) KARIZMA
2. Which type of bike have you bough
a) New
b) Pre Owned
2. Whether the price of the Vehicle is?

a) Affordable
b) Not Affordable
3. What is the purpose of buying this bike?

a) Personal use
b) Rental use
c) Other use
4. Who influenced in buying this bike?
a) Your self
b) Family
c) Friends
d) Advertisement
5. What does this car convey?
a) Status
b) Necessity
c) Comfort
d) Other
6. What are the reasons for buying this biker?

a) Price
88
b) Mileage
c) Service
d) Brand Image
7. You use your bike mostly for?

a) Office
b) Family
c) Long drives
d) Shopping
8. How long you will use this vehicle?

a) 1-2 years
b) 2-4 years
c) 4-8 years
d) 8 years & above
9. Rate your satisfaction for the service provided by the Organization?

a) Excellent
b) Good
c) O.K
d) Poor
10. Are you satisfied with mileage give by your bike?

a) yes
b) no
89
8. Are you satisfied with the sales and service promotion of Hero MotoCorp Ltd?
a) Yes b) No
9. Which company do you think provides better after sale service?
a) Hero MotoCorp Ltd b) Others

10. Is the opening and closing time of showroom convenient?
Timings:
Opening_________ Lunch ___________ closing _________
11. Did any of our staff, contact you after the delivery of new bike to ensure every
thing was satisfactory?
a) Yes b) No
12. Did you receive a letter of thanks form the dealer?
a) Yes b) No
13. Assuming you were to buy another Herohonda bike today, how likely are to buy
your
from this dealer?
a) Definitely b) Probably c) Might not d) Definitely not.
14. Human Interaction
OPINION POLITE KNOWLEDGE WARRANTY PRESENCE
90
15. Product Information
OPINION AVAILABILITY KNOWLEDGE TEST DRIVE
16. Time & Promptness
OPINION FAST PROCESSING DELIVERY AT FAST

AT ORDER PROMISED PROCESSING
AT DELIVERY
17.Consistency
Consistency in Human Interaction
OPINION ALTERNATIVES ALTERNATIVES
91
YES
NO
TOTAL
18. Consistency in processing
OPINIONS ORDER PROCESS DELIVERY
YES
NO
TOTAL
19. Convenience
OPINION MECHANIC FUEL TEST AVAILABILITY CONVENIENCE
YES
NO
TOTAL
20. Reason of selecting an option of Q.no13?
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21. Please give your comments/suggestions to enable us to improve services at this
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Herohonda authorized showroom.
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Thanking for taking a precious time for giving this feedback’
93

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Copyright:

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Sales and

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ABSTRACT

According to Jamier L. Scott. (2002), “Customer service is a series of activities designed

Customer service is normally an integral part of a company’s customer value proposition.

Need and Importance of Study-

 To study the effect of advertisement on the customers to promote the product.

 To study the customer satisfaction with usage of their bikes.

The data is collected directly from each and every customer.

Questionnaire (primary tool- attachment 1)

Sampling Size: Sample size was chosen to be 100.

Sampling Procedure: Simple Random Sampling.

The study is restricted in scope of owing to the following limitations:

UNDERTAKING THE KEY DELIVERABLES

1. Broachers, leaflets and pricelists – easy reference and handy.

Sales consultant has to be knowledgeable to understand the nuances of the specification

Time and Promptness.

“Nothing is consistent by change.”

Consistency is a matter of experience. The expectation of service grows from every

Inconsistency in service is caused by ever changing expectations of the customer. This

Furthermore, the characteristic of perish ability makes the service non-storable. They

It is helpful to offer customers information in printed form; good signing is very

According to Harold E Edmondson “ Customer Satisfaction” seems to appear in print

Who really is a Customer?

What does satisfaction really mean?

As in defining customer above, defining satisfaction also appears simple. However as

Building a company around Customer Satisfaction -

Customer focused organizations focus both on customer satisfaction and

The Influence of the salesperson in Customer Satisfaction-

In an article titled, “The influence of salesperson selling behavior on customer

Internal Marketing – how it affects Customer Satisfaction –

Successful companies make every effort to ensure satisfaction to their customer by

Customer Satisfaction as part of Service Profit Chain:

According to Jamier L. Scott. (2002), “Customer service is a series of activities designed

Setting the right KPIs

2. Body Language/Communication - Most of the communication that we relay to others

 ISO 9004:2000, on performance improvement

There is also an Information Technology service management standard: ISO/IEC

The sale can be made through

 Direct sales, involving person to person contact

The sales and marketing relationship

In most large corporations, the marketing department is structured in a similar fashion to

Marketing potentially negates need for sales

Sales and marketing alignment and integration

Unlike customer relationship management (CRM) and traditional business intelligence

HISTORY OF THE TWO WHEELERS:

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

INVENTION OF TWO WHEELERS:

HISTORICAL INDUSTRY DEVELOPMENTS:

Hero Motocorp Ltd. (BSE: 500182, NSE: HEROMOTOCO) formerly Hero Honda is

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

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

HERO HONDA'S MISSION

HERO HONDA'S MANDATE

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

10 Gen. (Retd.) V. P. Malik Non-executive & Independent