“A Study on Buying Behaviour of Consumers”

INTRODUCTION

1.1BIRTH OF AUTOMOBILES IN THE WORLD:
The History of the Automobile actually began about 4,000 years ago when the first wheel was used for transportation in India. Several Italians recorded designs for wind-driven vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels. Vaturio designed a similar vehicle that was also never built. Later Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential mechanism between the rear wheels. In the early 15th century, the Portuguese arrived in China and the interaction of two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By the 1600s, small steam-powered engine models were developed, but it was another century before a full-sized engine-powered vehicle was created. A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-powered vehicle for the Chinese Emperor Chien Lung in about 1678. There is no information about the vehicle, only the event. Nicolas-Joseph Cugnot of France is considered to have built the first true automobile in 1769. Designed by Cugnot and constructed by M.Brezin, it is also the first vehicle to move under its own power for which there is a record. Cugnot’s threewheeled steam-powered vehicle carried four persons and was meant to move artillery pieces. It had a top speed of a little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to build up a fresh steam. Evans was the first American who obtained a patent for “a self-propelled carriage.” He, in fact, attempted to create a two-in-one combination of a steam wagon and a flat-bottomed boat, which didn’t receive any attention in those days. During the 1830’s, the steam vehicle had made great advances.

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1.2 ORIGIN OF THE TWO WHEELER INDUSTRY:

The Britannica encyclopedia describes a motorcycle as a bicycle or tricycle propelled by an internal-combustion engine (or, less often, by an electric engine). The motors on mini bikes, scooters, and mopeds, or motorized velocipedes, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder motorcycles have displacements of more than 1,300 cubic cm.

The automobile was the reply to the 19th century dream of self-propelling the horsedrawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle.

The first commercial design was a 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 engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufactures. Tourist Trophy (TT) races were held on the Isle of Man 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, carbon-fibre reinforced bodywork.

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1.3 INVENTION OF TWO WHEELERS:

The Invention of the first two-wheelers is a much debated issue. “Who invented the first motorcycle?” may seem like a simple question, but the answer is quite complicated. Two wheelers owe their descent to the “safety” bicycle that is bicycles with front and rear wheels of the same size with a pedal crank mechanism to drive the rear wheel. Those bicycles, in turn descended from high-wheel bicycles. The high-wheelers descended from an early type of pushbike, without pedals, propelled by the rider’s feet pushing against the ground. These appeared around 1800, used iron-banded wagon wheels, and were called “bone-crushers”, both for their jarring ride, and their tendency to toss their riders. Gottlieb Daimler (who later teamed up with Karl Benz to form the Daimler-Benz Corporation) is credited with 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-spoke wagontype, and it definitely had a “bone-crusher” chassis! These two wheelers were powered by a single-cylinder Otto-cycle engine, and may have had a spray-type carburettor. (Wilhelm May Bach, Daimler’s assistant, was working on his invention of the spray carburettor at the time). If two wheels with steam propulsion can be called a motorcycle, then the first one may have been American. One such machine was demonstrated at fairs and circuses in the eastern US in 1867. Sylvester Howard Roper of Roxbury, Massachusetts, built this. There is an existing example of a Roper machine, dated 1869. A charcoal-fired two-cylinder engine, whose

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connecting rods directly drive a rank on the rear wheel, powers it. This machine predates the invention of the safety bicycle by many years, so its chassis is also based on the “bonecrusher” bike.

1.4 INTRODUCTION TO TWO-WHEELER INDUSTRY: India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. The Indian two-wheeler 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. In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, API dominated the scooter segment; Bajaj Auto later overtook it. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. However, the major set of reforms was launched in the year 1991 in response to the major macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of regulation and tight control to a more liberalized and competitive era. Two major results of policy changes during these years in two-wheeler industry were that the, weaker players died out giving way to the new entrants and superior products and a sizeable increase in number of brands entered the market that compelled the firms to compete on the basis of product attributes. Finally, the two-¬wheeler industry in the country has been able to

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witness a proliferation of brands with introduction of new technology as well as increase in number of players.

1.5 INTRODUCTION TO INDIAN TWO-WHEELER INDUSTRY: Indian Two-Wheeler Industry: A Recent Perspective, According to FADA (Federation of Automobile Dealers Association): Dripto Mukhopadhyay, Associate Fellow, NCAER1 Automobile is one of the largest industries in global market. Being the leader in product and process Technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well-directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Steps like abolition of licensing, removal of quantitative restrictions and initiatives to bring the policy framework in consonance with WTO requirements have set the industry in a progressive track. Removal of the restrictive environment has helped restructuring, and enabled industry to absorb new technologies, aligning itself with the global development and also to realize its potential in the country. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. The Automobile Industry in general and two wheeler industry in particular has shown a tremendous growth over the recent years. According to the Society of Indian Automobile Manufactures (SIAM) the industry has grown by 32.69% in the year 2009/2010.Two Wheeler segment as a whole during the year 2009/10 grew by over 30.51%. This growth has been due to the Government's initiative on rural roads and better connectivity with major towns and cities, improved agricultural performance, upward trend of purchasing power of rural people.The two-wheeler industry was able to achieve the record performance

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of crossing 9 million two Wheelers with exact sales standing at 9,371,231 during the year 2009-10.The northward trend of growth among the two-wheelers is set to continue in the years ahead. A brief input about the Domestic sales of various segment of two-wheelers with the statistics from there leading segments are as follows. 2005-06 909,051 2006-07 940,637 2007-08 1,007,123 2008-09 1,148,007 2009-10 1,462,507 Scooters:

Though the metal bodied geared scooters have fallen out of favor of the Indian two-wheeler user their upward trend in growth has been due to rise in the sales of scooters and Motor scooters. Bajaj Auto has been able to sell 383,776 units in the year 2009/2010 of two wheelers which don't include motorcycles. They have shown a negative trend in the two wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost its supremacy in the Scooter and Moped segment as they have shifted focus to motorcycles. HMSI currently occupies the leading position in the scooters segment with a market share of 51% (April-January 2010) and drawing on its flagship brand Activa (besides Aviator and Dio). It is followed by TVS (Scooty Pep+ and Streak), which has a market share of 22%. Motorcycles: 2005-06 6,210,599 2006-07 2007-08 2008-09 2009-10

7,113,021 6,500,432 6,801,127 9,371,231

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Motorcycles have become the most preferred choice among all two-wheeler users. They account for nearly 80% of the total two wheeler sales in the country. This trend is set to continue as more and more models of this hot set of two wheelers enter the market. Hero Honda is currently the clear market leader in this segment, enjoying a market share of close to 70%. Hero Honda which claims to be the largest manufacturer of two-wheeler in the world was able to sell 4.6 million motorcycles during the year 2009/2010.

Mopeds: 2005-06 332,741 2006-07 355,870 2007-08 431,289 2008-09 453,446 2009-10 517,476

Mopeds, which were once the entry-level options in the two-wheeler, have been replaced by entry level or price category bikes which provide all the comfort and advantages of a motorcycle but at an affordable price. Thus it has not come as a surprise that mopeds have shown a negative growth over the recent years. TVS Company one of the pioneers of mopeds manufactures of India was able to sell about 3.09 lakh of mopeds during 2009-10. This trend is supposed to continue in the days to come, as the motorcycles race ahead other two-wheelers will find it difficult keep up with the pace of their growth. Trend in 2W Volumes by Category:

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Source: SIAM, ICRA’s estimates

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1.6 MANUFACTURERS IN INDIA:

The Indian two-wheeler industry is highly concentrated, with three players-Hero Honda Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).

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Technological tie-ups of Select Players:

Nature of Alliance Company Product Bajaj Auto Technological tie-up Kawasaki Heavy Industries Motorcycles Ltd, Japan Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers Technological tie-up Kubota Corp, Japan Diesel HHML KEL KEL Engines Joint Venture Honda Motor Co, Japan Motorcycles Technological tie-up Hyosung Motors & Motorcycles Tie up Machinery Inc. for Italjet, Italy Scooters

manufacturing LML Hero Motors and distribution Technological tie-up Daelim Motor Co Ltd Technological tie-up Aprilia of Italy Motorcycles Scooters

1.7 A GROWTH PERSPECTIVE:

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The composition of the two-wheeler industry has witnessed sea changes in the post-reform period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in the Indian market. Motorcycle and moped had been experiencing almost equal level of shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the level of 16 and 6 per cent respectively. But in 2009-10 the trend has changed and all are looking forward in motorcycle rather than scooters or mopeds. Now motorcycle has a 70% market share in two wheeler industry and will further dominate in this segment as all the buyers opt for motorcycle and the trend is going change in future as well. Hero Honda gains market share within scooters segment: For FY09, scooters contribution to total 2-wheeler volumes was at 15.4%. However, during FY10 the contribution slipped to 12.3% during October 2009 before jumping to 17.4% in February 2010. Hero Honda’s market share in the segment increased from 13.4% in FY09 to 14.2% for YTD FY10. Rising proportion of <125cc motorcycles: Proportion of <125cc vehicles to total motorcycle volumes increased from 70.2% in FY09 to 74.1% in YTD FY10. Surprisingly, Bajaj Auto lost market share in 125-250cc segment by 4.2ppts from FY09.

Increasing rural penetration: Robust agriculture growth during the past few years along with pro-agriculture reforms has led to increased penetration of 2-wheelers in the rural areas.

1.8 CHANGING TRENDS OF THE INDIAN’S TWO WHEELER INDUSTRY:

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Share of scooters bounce back from lows in October 2009: Sale of scooters increased 23.1% yoy during YTD FY10 as against growth of 24.6% yoy in total two wheeler sales during the same period. The growth for scooters was lower compared to the total two wheelers on account of slew of launches in the motorcycle segment. Contribution of scooters to two wheeler volumes have recovered from ~12% to 15% in Aug-Oct 2009 to 17.4% in February 2010. However, on YTD basis the share of scooters of two wheelers remained flat at 15.4%. The share was higher by 75bps when compared to 16.7% in Jan ’10. Mahindra 2-wheelers (nil to 6%) were the major gainers. Honda was on the losing side with its market share falling from 57.1% to 50.8%. As per Crisil, over the next five years rural penetration of 2-wheelers will increase from 22% to 26%, while urban penetration will rise from 29% to 31%. The recent stats say all about the growth aspects in two-wheeler. Trend in 2W Sales Volumes, Domestic and Exports:

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Source: SIAM, ICRA’s estimates

1.9 TOPIC DESCRIPTION:

 INTRODUCTION TO MARKETING: In earlier days, marketers could understand consumers through the daily experience of selling to them. But the growth in the size of the companies and markets has removed many

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marketing managers from direct contact with the customers. The role of organization in developing the marketing activity cannot be ignored. Several instructions are involved in discharging marketing functions. They may be small or big, but they are on their toes to satisfy human wants. Consumer markets and consumer buying behaviour have to be understood before soundmarketing plans can be developed. The consumer market buys goods and a service for personal consumption. It is the market for which economic activities are organized. Before planning it’s marketing, accompany needs to identify its target consumers and their decision process. Although many buying decisions involve several participants who play such as initiator, influences decider, buyer and user. DEFINITION’S: “Marketing is a societal process by which individuals and groups obtain what they needs and what through creating, offering and freely exchanging products and services of value with others”. “Marketing is phenomenon brought about by the pressure of mass production and increase spending powers”. “Marketing activities are concerned with demand stimulating and demand fulfilling efforts of the enterprises.”

 CONSUMER BUYING BEHAVIOUR:

What products and services do we buy? Why do we buy? How often do we buy? From where do we buy etc.?  DEFINITION:

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“Consumer behaviour is all physiological, social and physical behaviour of potential customers as they become aware of, evaluates, purchase, consume and tell others about the product and services” “Consumer behaviour is a process where by individual decides whether, what, when, where and how and from whom to purchase goods and services” –Sir Walter C.G and Paul G.W “Consumer behaviour is the behaviour that the consumer displays in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs” -Sir Leon Schiff man

 IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS: 1. Consumer behaviour is helpful in understanding the purchase behaviour and

preferences of different consumers. As consumers we differ in terms of our sex, age, education, income, occupation, family set-up, religion, nationality, social status.
2. To successfully market to different market segments, the marketer needs appropriate

marketing strategies which we can design only when he understands the factors which account for these differences in consumer behaviour and tastes.
3. In today’s world of rapidly changing technology, consumer tastes are also

characterized by fast changes. Consumer behaviour provides invaluable clues and guidelines for marketers on new technological frontiers which they should explore. For example- CTV in lieu of B/W TV.

 A SIMPLE MODEL OF CONSUMER BEHAVIOUR:

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External Influences I N P U T Marketing Stimuli • Product • Price • Promotion • Channel of distribution Consumer Decision Making Buyer Characteristics PROCESS • Psychological • Personal & O U T P U T • Cultural characteristics Consumer Decisions & Actions • Product choice • Brand choice • Dealer choice • Purchase timing • Purchase amount -Process Buyer Decision Other Stimuli - Economic -Technological -Political -Social

 DETAILED

MODEL

OF

FACTORS

INFLUENCING

CONSUMER

BEHAVIOUR:

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1. Psychological Stage:  Motivation: When a need is sufficiently pressing, it directs the person to seek its satisfaction, it is known as motive.
➢ MASLOW’S HIERARCHY OF NEED:

 PERCEPTION: It can be described as “how we see the world around us”

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The different sights, sounds, smells, tastes & sensations that we feel are known as stimuli. Each person recognizes, selects, organizes & interprets these stimuli in his own individual manner based on his needs, values & expectations and this is known as perception. Therefore each individual perception is unique.  LEARNING: New Born- instinctive behavior Adult- learned behavior.
A. Formal learning: In which parents and elders teach children the proper way to

behave.
B. Informal Learning: In which we learn by imitating the behaviour of our parents,

friends, film actors/ artists in action.
C. Learning: In which instructions are given about the specific method by which certain

things have to be done such as printing, dancing, singing etc.  BELIEFS AND ATTITUDES: A belief is a ‘descriptive’ thought that a person has about something. The belief that the customer has about a brand is important. Therefore it determine his behaviour towards buying and using the belief constitute the brand image and if the customer has the wrong belief he is likely to generate negative image about the brand. 1. PERSONAL FACTORS:  Age & Life cycle Stage:

Age influences and buyers decision the need for different products and services changes with age.

• Babies and children need product like milk powder, baby foods and toys. • Young adult’s need- clothes, recreational and educational facilities, transportation and a host of other age and fashion related products.

Consumption behaviour is also influenced by the specific stage of the family life cycle.

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 EDUCATION AND OCCUPATION: Education widens a person’s horizons, refines his tastes and makes his outlook more cosmopolitan. Occupation also shapes the consumption needs people following specialized occupations such as- photography, music, carpentry etc. need special tools and equipment.  INCOME: The income which a person earns is an extremely important influence on his consumption behaviour. He may aspire to buy certain goods and services but his income may become a constraint. Person’s attitude towards spending vs. saving and his borrowing power are also important.  PERSONALITY: Personality is sum total of an individual’s psychological traits, characteristics, motives, habits, attitudes, beliefs and outlooks. Personality is the very essence of individual differences in consumer behaviour.
 LIFESTYLE:

Lifestyles are defined as patterns in which people live; as expressed by the manner in which they spend money and time on various activities and interests. Lifestyle is a function of our motivations learning, attitudes, beliefs and opinion, social class, demographic factors, personality etc. 1. SOCIAL FACTORS:
 Reference Groups:

The consumer’s decision to purchase and use certain products and services is influenced not only by psychological factors, his personality and life style, but also by the people around him with whom he interacts and various social groups he belongs to. A group is defined as two or more people who interact to achieve individual or common goals.

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 Family: Two families shape an individual’s consumption behavior. Within the family, different members play different roles; marketers want to find out exactly the role played by individual member.  Roles & Statuses: An individual may participate in many groups has position within each group can be defined in terms of activities he is expected to perform. 1. CULTURAL FACTORS:  Culture: The study of culture encompasses all aspects of a society such as its religion, knowledge, language, laws, customs, traditions, music, art, technology, work patterns, products etc. All these factors makeup unique distinctive personality of each society. The kinds of products and advertising appeals that can work effectively in a society depend largely on its cultural background.  Sub Culture: A sub culture is an identifiable distinct, cultural group which while following the dominant cultural values of the overall society also has its own beliefs, values and customs that set them apart from other members of the same society.  Social Class: Social classes can be defined as relatively permanent and homogeneous divisions in a society which individuals or families sharing same values, life styles, interests and behaviour can be categorized.

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 STAGES IN THE BUYER DECISION PROCESS:

In making a purchase decision the consumer goes through the five stages of buying process, and they are as follows: 1. Problem recognition 2. Pre-purchase information search 3. Evaluation of alternatives 4. Purchase decision
5. Post purchase behaviour

6. Disinvestment However, in case of routine purchases, the consumer may skip the second & third stages and straight away go the stage of purchase decision.
1. Problem recognition: the buying process starts with the buyer recognizing a need or

a problem
2. Pre-purchase information search: External & Internal.

Internal- refers to recalling relevant information stored in the memory. Externalrefers to deliberate and voluntary seeking of information, recognized the product/brand under consideration which can be known. 3. Evaluation of alternatives: The stage of the buying decision process gives the marketer a chance to modify his product offering in keeping with the relative importance attached to each attribute by various consumer segments, altering beliefs and attitudes about his own brand and calling attention to neglected product attributes.

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4. Purchase decision:

Consumer end up buying a brand which is not his most preferred because of • Shopkeeper’s influence • Preferred brand not available • Attractive incentive on other brand
1. Post Purchase behaviour:

After purchasing the product if consumer finds that its performance/utility matches up to his expectation, satisfaction occurs. Customer may also strongly recommend the brand to others. However if the product is not up to his expectation, then dissatisfaction results. The customer may decide to stop buying other products of the company and inform people known to him/her about the poor quality performance of the product.
2. Disinvestment:

After using the product for certain years the consumer might need sum returns from that particular product. The value which he gets from the product by selling is called as disinvestment. It might be in monetary kind or so.

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1.10 FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS TWO-WHEELERS:
1. PRICE CONSIOUSNESS:

Price is still the overriding factor in the purchasing decision. This explains why the price hike of Hero Honda has precluded its dominant emergence to the top despite its clear technical superiority.
2. FUEL EFFICIENCY:

Petrol prices being raised to sky, fuel efficiency has become an important parameter in the choice of the decision of the buyer. Middle class people usually see the fuel efficiency in purchase of a bike. High-class people won’t mind that much about factor.
3. FASHION:

The inclination towards trendy vehicles with the speed and good looks has become noticeable. Especially in bikes class of vehicles, stylized instrumentation has become an important choice in the two-wheeler market.
4. RESALE VALUE:

The resale value of an old two wheeler vehicles has traditionally be an important factor in determining consumer’s choice. That is one reason why Bajaj and Hero Honda command handsome resale Value.
5.

ROAD GRIP:

In recent times road grip has also emerged as an important variable affecting the decision process. Young people always look for a road grip bikes. That is one of the reasons why Hero Honda’s New Splendor hit in the market.
6. PRESTIGE:

It also influences the consumer buying decision. Usually Rich people look for a costliest or a stylish vehicle. They always go for a high product. They like to acquire unique vehicle just to maintain their prestige.
2. BRAND NAME:

This also plays a major role in consumer buying decision. Old and middle age people usually prefer to go Hero Honda or Bajaj and young prefer Honda because of their brand name, which has created good image in consumer’s mind by giving stylish motorcycle and scooters.

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2.1 TITLE OF THE STUDY: “A Study on Buying Behaviour of Consumers towards Hero Honda Bikes, Bangalore” 2.2 STATEMENT OF THE PROBLEM: The present decade is an age of competition where the buyer has variety of goods to choose from any product. These products, which do not fulfil the needs and satisfy the wants of consumer’s losses its prime Reason for existence? Thus each manufacture tries to steal the limelight by formulating an original and novel method of marketing to promote their product and capture a greater chunk of the market. The consumer market consists of all the individuals and Household who buys or acquires goods and services for personal Consumption. Consumer’s range tremendously in age, income, education, Patterns and tastes etc. Consumer does generally have some notion in their mind about the product before buying it. This may be of price, quality, durability Status and services etc., after well consider purchase decisions of the product which are well Decided the products perceived performance could be of expected level of consumer which influences the market in capturing market Share of the product for the manufacturer. It has become very difficult to find our consumer preferences towards bikes. Hero Honda also facing the same situation, it has introduced a verity of product line with different features with slight price variations then too Hero Honda is considered to be no.1 two Wheeler Company in India. What has made to be no.1 is the statement of the problem. 2.3 OBJECTIVES OF THE STUDY:
➢ To know the consumers buying behaviour towards purchase of Hero Honda bikes.

➢ To know the customer expectations regarding that particular bike’s. ➢ To find out the respondent’s/consumer opinion’s about Hero Honda. ➢ To know the factors those are influencing consumers to buy Hero Honda bikes. ➢ To find out the effect on media, advertisements on consumers of Hero Honda bike’s. ➢ To find out whether the consumers recommend Hero Honda to others. ➢ To give appropriate suggestions to company and enhance their performance.

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2.4 SCOPE OF THE STUDY: This study is aimed at providing HERO HONDA at MAJESTIC MOBIKES PVT LTD. ( Authorized dealer of Hero Honda) with an insight on the buying behaviour of consumers and its patterns regarding Hero Honda bikes as well as the customer’s response and awareness towards the brand, products, services and other aspects of Hero Honda The data has been analysed and presented in a simple and precise way on the basis of which pertinent recommendations have been made to the company to better the services, policies and strategies of the company in India. Companies also want the Suggestion for improvement from consumers of Hero Honda & get Feedback from customer. 2.5 LIMITATIONS OF THE STUDY: ➢ Findings are based on responses provided by customer. ➢ Limited interaction time with buyers, and hence in-depth study was difficult. ➢ During survey some respondents may not give answer in a proper manner. ➢ The size of the sample being relatively small, some of the findings may slightly vary with those of the larger universe. ➢ The study would be confined to the bike users in Bangalore city only. 2.6 TYPE OF RESEARCH: The research type can be classified in to three broad categories: (A) (B) (C) Exploratory Descriptive Casual

Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading available. It does not have to change his focus of direction, depending on the availability of new ideas and relationship among variables. Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a high degree of scientific skill on the part of the researcher.

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Casual research helps in determined cause and effect relationship. Between two or more variables. The present study seeks to find out the consumers attitude towards buying of bike. The study also aims at findings out the drawbacks of the marketing set up of Hero Honda Pvt. Ltd. so this makes the study a descriptive one.

2.7 METHODOLOGY OF THE STUDY:

A. SOURCES OF DATA: The Sources of data collection methods are as follows.
a) Primary data:-

The primary data is that which details we collect first time from the market and also used first time in the research. We also say that the information is first time in the research decision. To collect the primary data questionnaire is prepared structure nondisguise questionnaire is prepared.
b) Secondary data:-

Secondary data are those data which are already collected by someone for some purpose and are available for the present study; secondary data are already collected by the company’s records and other library’s books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire.

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B. SAMPLING PLAN: Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. A. Sample Site: The survey was conducted in Bangalore city only. B. Sampling Unit: It means “Who is to be surveyed”. Here target population is decided and it is who are interested to purchase “Bike” and sampling frame is developed so that everyone in the target population has known chance of being sampled. So the survey is conducted particularly in Bangalore City. C. Sample size: For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behaviour of bike. The sample size is 100 respondents. 2.8 RESEARCH INSTRUMENTS: Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is “Questionnaire” for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre-testing of questionnaire, I seen the reaction of respondents and suggestions required to make change in research instrument.

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3.1 BACKGROUND OF HERO HONDA:

Hero group was started by the four Munjal brothers, namely: Mr Satyanand Munjal, Mr Om Prakash Munjal. Late Mr Dayanand Munjal and Late Mr Raman Kant Munjal. Hailing from a small town called Kamalia, now in Pakistan in the year 1944 by establishing bicycle spare parts business in Amritsar. After independence and partition of India, they moved to Ludhiana and started a bicycle unit called Hero Cycles in 1956. By 1975, Hero cycles became the largest bicycle manufacturer in India. In 1984, Hero group joined Honda Motors of Japan to create Hero Honda Motors Limited which soon became one of the market leaders in motor-cycle sales in India. In 1986 Hero Cycles Limited entered the Guinness Books of World Records as the largest bicycle manufacturer in the world. By the year 2004, Hero Honda became the world' largest manufacturer of two-wheelers with over 48% market share in India. In year 2006, Hero Honda entered the scooter production with launch of its new model - Pleasure. After joint venture between the Hero Group and Honda Motor Company in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. 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. Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana.

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These plants together are capable of churning out 3.9 million bikes per year. A third stateof-the-art manufacturing facility at Haridwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Honda's extensive sales and service network now spans over 3,000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockists and authorized representatives of dealers across different areas. Hero Honda values its relationship with customers. Its unique CRM initiative, Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. This would provide the growth ballast that would sustain Hero Honda in the Years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.'' HERO HONDA’S MISSION: Hero Honda’s mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. HERO HONDA’S 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.

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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.

3.2 BOARD OF DIRECTORS: No. Name of the Directors 1 Mr. Brijmohan Lall Munjal 2 3 4 5 6 7 8 9 Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Sumihisa Fukuda Mr. Sunil Kant Munjal Mr. Suman Kant Munjal Mr. Takashi Nagai Mr. Yuji Shiga Mr. Pradeep Dinodia Designation Chairman & Whole-time Director Managing Director & C.E.O. Joint Managing Director Technical Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director

10 Gen. (Retd.) V. P. Malik 11 Mr. Analjit Singh 12 Dr. Pritam Singh 13 Ms. Shobhana Bhartia 14. Mr. M. Damodaran 15. Mr. Ravi Nath 16. Dr. Anand C. Burman

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3.3 ORGANIZATIONAL STRUCTURE OF MAJESTIC MOBIKES:
Delivery Spare Service Dealer Washing Customer Accounts Dealer’s Spare parts Servicesales Sales parts Manager Accounts BoysDirector Cashier Supervisors Technician Managing General Executives/B Assistant manager Manager Executive support Exe Manager oys

Relationship Manager

Relationship Executive

Showroom sales Exe

Tele callers

Office assistant

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1.4 BUSINESS OPERATIONS:

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.  Raman Munjal Vidya Mandir: 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 center.

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 Raman Munjal Memorial Hospital:

Multi-specialty hospital equipped with the latest diagnostic and surgical technology. The Raman Munjal Memorial Hospital provides healthcare to the rural population in and around Dharuhera, and also caters to accident and trauma victims driving along the DelhiJaipur highway.  RURAL HEALTH CARE: 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.

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1.4 PRODUCT PROFILE:  SPLENDOR:
ONE OF THE IN BEST THE

SELLERS INDIAN SPLENDOR

MARKET. BIKE IS

EVERY 30 SECONDS A SOLD IN INDIA. THE MODELS UNDER SPLENDOR ARE: • SUPER SPLENDOR

SPLENDOR PLUS

SPLENDOR NXG

SPLENDOR PRO

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 PASSION:

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es in Indian Market. Passion Sales are more in North India than the South. Most preferred by middle class people.

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 GLAMOUR:

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GLAMOUR:
Glamour came into market few years back and is going on well in its segment. But could not make as effective as splendor or passion made. The models under Glamour are: • Glamour

Glamour F1

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 CBZ-XTREME:

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CBZ-Xtreme: It was introduced in the year 2008, already the Indian two wheeler markets had achieved the maximum growth and this made the product slightly

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 KARIZMA:

 KARIZMA:

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Karizma was introduced in India Market in the year 2003; it had held the pole position in sport segment. It was mostly preferred by youngsters and was later hauled by Bajaj and Honda respectively. The Models under Karizma are:

Karizma

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1.4 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 1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal

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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 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

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First Scooter model from Hero Honda - "Pleasure" introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved 2007 Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched New motorcycle model 'Hunk' launched 20 million production milestone achieved 2008 Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe lauched with power start feature New 'Glamour' launched. New 'Glamour Fi' launched. 2009 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched. Splendor completed 11 million production landmark. New motorcycle model 'Karizma - ZMR' launched. Silver jubilee celebrations.

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1.5 PROMINENT COMPANY:

AWARDS

TO

THE

Y ea

Awards & Recognitions:

r 20 Company of the Year awarded by Economic 10 Times Awards for Corporate Excellence 200809. 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 20 'Two-wheeler Manufacturer of the Year' by 09 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 bythe Dun & BradstreetRolta Corporate Awards Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

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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" - Glamour PGM FI "Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine. 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.

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2006 Adjudged 7th Top Indian Company by Wall street 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 Wall street 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

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• Bike of the Year - Achiever (up to 150 cc category) • Bike of the Year - Glamour (up to 125 cc category) • NDTV Viewers' Choice Award to Glamour in the bike category 2005 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 2003 Winner of the Review 200 - Asia’s Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine. 2002 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia’s Leading Companies Award (4th Rank

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amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best Investor Relations' category, by Asia money. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance. 2001 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia’s Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment. 1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd.

3.8 GROWTH OF HERO HONDA:

SALES PERFORMANCE: HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50 % NET PROFIT IN Q2, '08-09

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DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES & OTHER OPERATING INCOME), AT RS. 3202 CRORE; EBIDTA AT 13.58 PER CENT Aug'06 Aug'07 FY 06-07 FY 07-08 Total 2,15,076 2,40,875 12,82,860 12,63,254 Sales Highlights of Q2, FY'08-09: • Total turnover(Net sales & Other Operating income)Rs. 3202 Crores, growth of 35.6 per cent • Net profit after tax at Rs 306.30 crores, growth of 50 per cent • EBIDTA margin for the quarter 13.58 per cent • Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent • Total sales for H1 stands at 18,66,349, growth of 19.7 per cent • Over 55 per cent share in domestic motorcycle market • Launches first-of-its kind music video to celebrate 25 years of Hero Honda. New Delhi, October 21, 2008: Hero Honda Motors Ltd (HHML), the world's largest twowheeler company for seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2) – July to September - of this financial year (FY) 2008-09. Even as the industry continued to face tough market conditions on account of uncertainty over interest rates and overall credit squeeze, the company reported 50 per cent growth in profit after tax (PAT) at Rs 306.30 crore for the second quarter. Hero Honda's profit after tax in the corresponding period last fiscal (July - Sept, 2007-08) stood at Rs 204.33 crore. Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of 35.6 per cent over Rs 2361 crore recorded in the corresponding period last fiscal. The company has recorded an EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA margin in the previous quarter (April - June '08) was 12.20 per cent. The strong financial performance is in line with the company's better-than-industry top line growth. After posting a growth 11.38 per cent in the first quarter, the company kicked off the second quarter with a 39.8 per cent growth in sales in the month of July, and followed up with 26.8 per cent growth in August and 22.4 per cent in September. Hero Honda

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consistently keeps growing its share in the domestic motorcycle market, and currently enjoys over 55 per cent share. Hero Honda's cumulative sales for the second quarter (Q2) this FY stands at 9,072,095 units - a growth of 28.5 per cent over Q2 last FY (2007-08). The cumulative sales for the first six months (H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the last FY – reflecting a consistent 19.7 per cent growth in cumulative sales. 2009-10 Performance: Total unit sales of 46,000,130 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.

3.9 FUTURE PROSPECTS OF HERO HONDA:

 TERMINATION OF HERO AND HONDA JOINT VENTURE: In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda for R & D for new bike

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models. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

3.10 PROFILE OF THE DEALER: “Majestic Mobikes Pvt ltd.” ‘Authorised dealer of Hero Honda’ Majestic Mobikes was established in the year 1985. From then, it is committed to excellence in serving all there esteemed customers. The sales team is made up of dedicated showroom and field executives who are professionally trained by Hero Honda Motors. They are guiding the customers through the entire sales process right from assisting in the choice of model, Colour and factors to handing a helping hand in providing attractive buyback options and also arranging finance at competitive rates. The service centre is armed with the stock-of-the art equipment and is in line with world-class standards. The service team is technically qualified and trained to analyse and provide solutions adhering to Hero Honda care guidelines order to satisfy even the most demanding customers. The Majestic Mobikes dealership maintains a high standard of excellence in sales and services by sending its personnel for training and a regular basis to Hero Honda, to update them with the latest technological advances in the automatic world.

Mission & Vision of Majestic Mobikes: Mission: • To Make More sales,

To increase more service centres to provide highest Quality service.

Vision: • To achieve customer delight. SERVICE: The product owners of Hero Honda can service their scooters at their services counters, which are a state-of-the art facility. It incorporates the latest equipment and technology and

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is manned by trained technicians. These qualified, talented professionals lay emphasis a quality of workmanship and can attend to 40-50 bikes at any given day. ADDRESS: Dealer Name Managing Director Mobile Address : +919611330820 : No.125, Lalbagh – 560004 Phone E-mail Id : 080-42512525 : majesticsales@airtelbroadband.i n Majestic West Plaza, Near Gate, R V : Majestic Mobikes Pvt Ltd. : Sir H.Parameswara

Road, Basavanagudi, Bangalore

SALES TURNOVER: Sales turn of all Hero Honda bikes in Majestic Mobikes is more than 11,500 vehicles per year. Departments of Majestic Mobikes:
1) Finance Department:

Financial management is many ways an integral part of the jobs of managers who are involved in planning, allocation of resources and control. The responsibilities for the financial management are dispersed throughout the organization. The key activities of financial management are: a) Looking at the accounts of the show room.

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b) Forecasting and planning the financial future of the Show room.
2) Marketing Department:

Marketing is an organizational function and a set of the processes for creating, communicating and delivering value to customers and for managing customer relationship in ways that benefit the organization and its stake holders and making more sales. In marketing department many other sub departments are related they are:  Service Department  Sales Department  Spare Part’s Department  Promotion Department
1) Human Resources Department:

Human resources management means employing people, developing their skills & resources, utilizing, maintaining & compensating their services in tune with the job and the organizational requirements with the view to contribute to the goals of the organization, individual & the society. Human resources are the total knowledge, skills, creative abilities, talents & aptitude of an organization. Of all the M’s in the management like material, machine, money, manpower, etc. Man is the most valuable assets and organization. Total Number of Workers & Staffs working in Majestic Mobikes is 83 Members. TABLE-1: Table showing Age of the Respondents:

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Age (in years) 18-20 21-25 26-30 31-40 41-50 TOTAL No. of respondents 08 42 24 20 06 100 Percentage (%) 8% 42% 24% 20% 06% 100

ANALYSIS: From the above table it is clear that, in between 18-20 years are 8%, 21-25 years are 42%, 26-30 years are 24%, 31-40 years are 20% and 41-50 years are 6%.

INFERENCE:

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It is revealed that most of the respondents belong from 21-25 years i.e. 42% and 26-30 years 24%. This shows that Hero Honda is mainly used by young generations. The company should more emphasize on youths of the country.

GRAPH-1:

Graph Showing Age of the Respondents:

TABLE-2: Table showing the occupation of the respondents:

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OCCUPATION BUSINESSMAN STUDENT PROFESSION OTHERS TOTAL NO. OF RESPONDENTS 20 38 18 24 100 PERCENTAGE (%) 20% 38% 18% 24% 100

ANALYSIS:

From the above table it is clear that Businessman’s are 20%, Students are 38%, Professions are 18% and remaining 24% are others.

INFERENCE:

It is revealed that majority of the respondents are students and average is from the others & own business. Hero group must target Professionals more in order to enhance their overall sales.

GRAPH-2:

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Graph showing occupation wise classification:

TABLE-3: MOTOR BIKE NO. OF RESPONDENTS PERCENTAGE (%)

YES NO TOTAL

64 36 100

64% 36% 100

Table showing weather Respondents have/had Bike:

ANALYSIS:

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From the above table we can infer that 64% respondents had bike before purchase of Hero Honda Bike. The remaining 36% respondents were new customers to Hero Honda. INFERENCE:

It is revealed that majority of the respondents were having bike before purchase of Hero Honda Bike. This inference shows why Hero Honda is holding 70% market share in twowheeler segment.

GRAPH-3: Graph showing weather Respondents have bike or not:

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TABLE-4: Table showing the company which respondents had before purchase of Hero Honda PRESENT COMPANY BIKE HONDA BAJAJ YAMAHA TVS TOTAL bike: 26 20 4 14 64 40.625% 31.25% 6.25% 21.875% 100 No. OF RESPONDENTS PERCENTAGE (%)

ANALYSIS:

From the above table, it reveals that 26 respondents had Honda, 20 respondents had Bajaj, 9 respondents had Yamaha and remaining 12 respondents had TVS motors before purchasing Hero Honda.

INFERENCE:

It reveals that majority of the respondents are from Honda and Bajaj. The respondents are not satisfied with their present company and so they have opted Hero Honda. This INFERENCE shows Hero Honda is better brand compared to others.

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GRAPH-4: Graph showing the company which respondents had before purchase of Hero Honda bike:

TABLE-5: Table showing the model opted by respondents at Hero Honda:

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BIKE OPTING NOW SPLENDOR PASSION KARIZMA CBZ - XTREAM GLAMOUR TOTAL No. OF RESPONDENTS 28 10 30 14 18 100 PERCENTAGE (%) 28% 10% 30% 14% 18% 100

ANALYSIS: From the above table it reveals that 28% opt for splendor, 10% opt for passion, 30% opt for Karisma, 14% opt for CBZ-Xtreme and remaining 18% opt for glamour. INFERENCE: It reveals that majority are opting for Karizma, followed by splendor. But the organization should shift the focus on Passion, CBZ-Xtreme and glamour to make more sales in this segment also.

GRAPH-5: Graph showing the model opted by respondents at Hero Honda:

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TABLE 6: Table showing the specialty of Hero Honda models, which cannot be found in any other models: SPECIALTY ASPECTS OF HERO HONDA GREAT LOOKS SUPERB MILEAGE UNIQUE FEATURES ECONOMICAL PRICE TOTAL 40 48 06 06 100 40% 48% 06% 06% 100 No. OF RESPONDENTS PERCENTAGE (%)

ANALYSIS:

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From the above table we can know that, 40% respondents feel it has great looks, 48% respondents feel it has superb mileage, 6% respondents feel it has economical price and remaining 6% feel it has unique features. INFERENCE: It reveals that most of them feel superb mileage and great looks, but hero Honda has to concentrate on economic aspects of the bike and increase its features this in return will boost the overall sales of the Hero Honda in future.

GRAPH-6:

Graph showing the specialty of Hero Honda models, which cannot be found in any other model:

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TABLE-7:

Table showing about the respondent’s preference towards Hero Honda: ATTIRIBUTES SUPERIOR MILEAGE BETTER TECHNOLOGY TRUSTED BRAND NEW MODELS/DESIGNS TOTAL No. OF RESPONDENTS 26 10 52 12 100 PERCENTAGE (%) 26% 10% 52% 12% 100

ANALYSIS: From the above table we can infer than 26% prefer superior mileage, 10% feel better technology, 52% feel Trusted brand and remaining 12% feel New models/designs. INFERENCE: It reveals that majority feels Hero Honda is trusted brand compared to others brands and so they are opting bike in Hero Honda. This shows positive sign for hero Honda but will have to maintain the same in the future too.

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GRAPH-7:

Graph showing about the respondent’s preference towards Hero Honda:

ATTRIBUTES MAINTENANC E COST PRICE TABLE-8:

VERY HIGH ECONOMICAL NOMINAL TOTAL HIGH 06 04 18 24 04 28 28

Table showing the attributes considered while purchasing Splendor Bike’s:

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ANALYSIS: From the above table we come to know that out of 28 respondents, 06 respondents feel maintenance cost is high, 18 respondents feel its economical and remaining 4 respondents feel its nominal. 4 respondents feel the price of the bike is high, 24 respondents feel it’s economical. INFERENCE: From the graph it reveals that majority i.e. 64% feels the maintenance cost is economical and can be managed and regarding the price of the bike also the respondents feel it’s economical. Thus we come to know that splendor is the most preferred brand in India.

GRAPH-8:

Graph showing the attributes considered while purchasing Splendor Bike:

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TABLE-9:

ATTRIBUTES MAINTENANCE COST PRICE

VERY HIGH HIGH 02 02

ECONOMOCAL 06 08

NOMINAL 02 02

TOTAL 10 10

Table showing the attributes considered while purchasing Passion Bike’s:

ANALYSIS: From the above table we come to know that out of 10 respondents, 2 respondents feel the maintenance cost is very high, 6 respondents feel its economical and remaining 2 respondents feel its nominal. Out of 10 respondents, 2 respondents feel the price of the bike is high, 8 respondents feel its economical and remaining 2 respondents feel it’s nominal. INFERENCE: It reveals that majority of the respondents feel the maintenance cost of the passion is economical and the price of the model is also economical. Thus we come to know that passion is an economical bike which can be affordable by middle class family.

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GRAPH-9:

Graph showing the attributes considered while purchasing Passion Bike:

TABLE-10: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 14 HIGH 20 16 ECONOMOCAL 08 NOMINAL TOTAL 30 30

Table showing the attributes considered while purchasing Karizma Bike:

ANALYSIS:

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From the above table we know that out of 30 respondents, 2 respondents feel maintenance cost is very high, 20 respondents feel its high and remaining 8 respondents feel it’s economical. The price of the model, out of 30 respondents 14 respondents feel the cost of the bike is very high and remaining 16 respondents feel it’s high. INFERENCE: From the above analysis we come to know that, majority of the respondents feel the maintenance cost of the Karizma is high and the price of the bike is also high. This shows why there are less sales of Karizma compared to other models in Hero Honda. If the price is reduced the model might increase its sales.

GRAPH-10:

Graph showing the attributes considered while purchasing karizma Bike:

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TABLE-11:

Table showing the attributes considered while purchasing CBZ-Xtrem Bike: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 HIGH 06 12 ECONOMOCAL 08 NOMINAL TOTAL 14 14

ANALYSIS: From the above table we come to know that out of 14 respondents, 6 respondents feel the maintenance cost is high and remaining 8 respondents feel it’s economical. Regarding the price issue 2 respondents feel it’s very high, and remaining 12 respondents feel it’s high. INFERENCE: It reveals that majority of the respondents feel that maintenance cost of CBZ-Xtrem is economical and the price factor tells us it’s high. If price of the bike is reduced or made economical we might see more sales in this aspect.

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GRAPH-11:

Graph showing the attributes considered while purchasing CBZ-Xtrem Bike:

TABLE-12:

Table showing the attributes considered while purchasing Glamour Bike: ATTRIBUTES MAINTENANCE COST PRICE VERY HIGH 02 HIGH 06 12 ECONOMOCAL 10 04 NOMINAL 02 02 TOTAL 18 18

ANALYSIS:

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From the above we can analysis that out of 18 respondents, 6 respondents feel the maintenance cost is high, 10 respondents feel it’s economical and remaining 2 respondents feel its nominal. Regarding the price, 2 respondents feel it’s very high, 12 respondents feel its high, 4 respondents feel its economical and remaining 2 respondents feel its nominal. INFERENCE: It reveals that majority of the buyers feel the maintenance cost can be manageable and it’s economical but the price factor of the glamour is high for the respondents. If the company can reduce this the overall sales will boost up.

GRAPH-12:

Graph showing the attributes considered while purchasing Glamour Bike:

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TABLE-13: Table showing did respondents test drive the model before purchase: TEST DRIVE YES NO TOTAL NO. OF RESPONDENTS 58 42 100 PERCENTAGE (%) 58% 42% 100

ANALYSIS: From the above table we can know that 58% had done test drive before purchase and remaining 42% did not do so. INFERENCE: It reveals that majority had a test drive before purchasing, but it’s better to the company if they can maintain 100% test drive option for the customers. As it maintains good customer relationship with the company.

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GRAPH-13: Graph showing, did respondents test drive the model before purchase:

Table-14: Table showing why respondents did not test drive before purchase:

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Not Opted test drive, as I DID NOT KNOW NOT OPTED BY ME BIKE NOT AVAILABLE TRUSTWORTHINESS TOTAL No. OF RESPONDENTS 24 16 0 2 42 PERCENTAGE (%) 57.14% 38.09% 0% 4.76 100

ANALYSIS: From the above table we can analyze that 24 respondents didn’t know about the test drive option, 16 respondents did not opt by themselves and remaining 2 respondents feel its trustworthiness. INFERENCE: The majority did not know about the test drive option. So it’s recommended to the company that they offer a test drive option before the purchase.

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GRAPH-14: Graph showing why respondents did not test drive the bike before purchase:

Table-15: Table showing how respondents came to know about the Hero Honda bike:

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SOURCES NEWSPAPERS FRIENDS TV ADS OTHERS TOTAL No. OF RESPONDENTS 02 66 20 12 100 PERCENTAGE (%) 2% 66% 20% 12% 100

ANALYSIS: From the above table we can know that 2% from Newspaper, 66% from Friends, 20% from TV ads and remaining 12% from other sources. INFERENCE: We know that Hero Honda is spending a lot in advertisements but it has failed to reach the consumers. Majority have come to known by their friends. Hero Honda will have to increase its promotional methods.

GRAPH-15:

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Graph showing how respondents came to know about the Hero Honda bike:

Table-16: Table showing who motivated the respondents to buy the bike: FACTORS PARENTS FRIENDS/RELATIVES SALES PERSONNEL ADVERTISEMENT TOTAL No. OF RESPONDENTS 36 52 06 06 100 PERCENTAGE (%) 36% 52% 06% 06% 100

ANALYSIS:

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From the above we can infer that parents motivation is 36%, friends/relatives motivation is 52%, sales personnel is 6% and remaining 6% is advertisement. INFERENCE: It reveals that majority have taken opinion from friends/relatives followed by parents. But its better if sales personnel motivates as the consumer will not be having any knowledge before purchase by telling the product features and other aspects.

GRAPH-16:

Graph showing who motivated the respondents to buy the bike:

Table-17:

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Table showing will respondents recommend their model to others: RECOMMEND OTHERS YES NO TOTAL NO. OF RESPONDENTS 86 14 100 PERCENTAGE (%) 86% 14% 100

ANALYSIS: From the above table, we can know 86% recommend hero Honda and remaining 14% won’t recommend Hero Honda. INFERENCE: It is revealed that the majority of the respondents wish to recommend others to buy the Hero Honda, so it can be said that most of the customers are satisfied with the performance of Hero Honda.

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Graph-17:

Graph showing will respondents recommend their model to others:

TABLE-18:

Table showing respondents answer towards “BRAND AMBASSADOR” of Hero Honda:

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OPTIONS SACHIN TENDULKAR AMITABH BACHCHAN MS DHONI HRITHIK ROSHAN TOTAL No. OF RESPONDENTS 28 8 14 50 100 PERCENTAGE (%) 28% 8% 14% 50% 100

ANALYSIS: From the above table 50% respondents feel Hrithik roshan, 28% Sachin Tendulkar, 14% M.S Dhoni and remaining 8% feel it’s Amitabh Bachchan. INFERENCE: It reveals that majorities are right, but its only 50% are aware of the brand ambassador of Hero Honda and remaining 50% are wrong. So hero Honda has to make it more effective in advertisement.

GRAPH-18:

Graph showing respondents answer towards BRAND AMBASSADOR of Hero Honda:

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SHOWROOM’S VISITED SRICHANDU MOTORS,HOSUR ROAD PRAKASH MOTORS,LALBAGH ROAD MILLENNIUM MOTORS,DOMLUR ROAD SAI MOTORS,BANASHANKARI NONE OF THE ABOVE TOTAL TABLE-19:

No. OF RESPONDENTS 02 04 06 14 74 100

PERCENTAGE (%) 02% 04% 06% 14% 74% 100

Table showing respondents visit to other dealers of HERO HONDA:

ANALYSIS: From the above table 74% visited majestic mobikes, 14% sai motors, 6% millennium motors, 4% Prakash motors and remaining sri chandru motors.

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INFERENCE: It reveals that majority have visited more the majestic mobikes and this shows a good sign for the dealer and has to improve in the future so.

Graph-19:

Graph showing respondents visit to other dealers of HERO HONDA:

TABLE-20:

Table showing the respondents attitude towards availability of models at dealer’s showroom:

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AVAILABILITY OF MODELS EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 48 42 08 02 100 PERCENTAGE (%) 48% 42% 08% 02% 100

ANALYSIS: From the table we can infer that, 48% feel the availability of models is excellent, 42% feel its good, 8% feel its average and remaining 2% feel it’s poor. INFERENCE: It reveals that majority of the respondents feel i.e. 48% feel the availability of the models are very good and are satisfied with the dealers and 42% feel good and the availability factor. This shows a very good sign for the dealers. It should try to improve more in this regard and never let down this aspect is future.

GRAPH-20:

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Graph showing the respondents attitude towards availability of models at dealer’s showroom:

TABLE-21:

Table showing the respondents attitude towards sales executive response at dealer’s showroom: SALES EXECUTIVE RESPONSE EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 02 32 54 15 100 PERCENTAGE (%) 02% 32% 54% 15% 100

ANALYSIS:

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From the above table we come to know about the sales executive response, only 2% feel its excellent, 32% feel it’s good, 54% feel its average and remaining 12% feel it’s poor. INFERENCE: It reveals that majority of them i.e. 54% feel its average in regard with sales executives response towards them. If the response is much better than this, the consumer will maintain certain loyalty with the dealers and recommend others towards the dealers.

GRAPH-21:

Graph showing the respondents attitude towards sales executive response at dealer’s showroom:

Table-22:

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Table showing the respondents attitude towards services rendered before purchase at dealer’s showroom: SERVICES RENDERED BEFORE PURCHASE EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 00 24 46 30 100 PERCENTAGE (%) 00% 24% 46% 30% 100

ANALYSIS: From the above table we can infer that, 0% feel it’s excellent, 24% feel it’s good, 46% feel its average and remaining 30% feel its poor with the services rendered before purchase. INFERENCE: It reveals that majority of the respondents feels the services are not up to the mark. Only 46% feels it’s an average and remaining 54% are not satisfied with the services aspects of the dealers. If the dealers increase the service aspects the customers will be satisfied and dealers can capture the customer’s values.

Graph-22:

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Graph showing the respondents attitude towards services rendered before purchase at dealer’s showroom:

TABLE-23:

Table showing the respondents attitude towards infrastructure of dealer’s showroom: INFRASTRUCTURE EXCELLENT GOOD AVERAGE POOR TOTAL No. OF RESPONDENTS 20 56 20 04 100 PERCENTAGE (%) 20% 56% 20% 04% 100

ANALYSIS:

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From the above table we can infer, 20% feel its excellent, 56% feel it’s good, 20% feel its average and remaining 4% feel its poor with the infrastructure of the dealers. INFERENCE: It reveals that majority of the respondents i.e. 56% feel it’s good and this shows a good sign for the dealers. They should try and improve much further to gain advantage from the others dealers.

GRAPH-23:

Graph showing the respondents attitude towards infrastructure of dealer’s showroom:

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TABLE-24:

ADDITIONAL FEATURES HELMET LOCK BUZZER INDICATOR TEFLON COATING ENGINE GUARD TOTAL

No. OF RESPONDENTS 08 10 36 44 100

PERCENTAGE (%) 08% 10% 36% 44% 100

Table showing additional features required by respondents in a bike:

ANALYSIS: From the above table we can infer that 8% respondents look for Helmet lock, 10% respondents look for buzzer indicator, and 36% respondents want Teflon coating and remaining 44% need engine guard. INFERENCE: From the above analysis we can interpret that most of the respondents need ENGINE GUARD as additional accessory with the bike. So the dealers should provide Engine guard along with the bike.

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GRAPH-24:

Graph showing additional features required by respondents in a bike:

TABLE-25:

Table showing the respondents opinion about the split up of HERO and HONDA: IMPACT ON HERO YES NO TOTAL NO. OF RESPONDENTS 88 12 100 PERCENTAGE (%) 88% 12% 100

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ANALYSIS:

From the above table we can know that 88% of the respondents say it has impact on Hero group and remaining 12% respondents says no impact on Hero group. INFERENCE: Through this analysis we got to know most of the respondents feel that there will be certain impact on Hero group after the split up. The hero group will have to improve its technological aspects and re-modify its brand.

GRAPH-25:

Graph showing the respondents opinion about the split up of HERO and HONDA:

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5.1

OBJECTIVES OF THE STUDY:
➢ To know the consumers buying behaviour towards purchase of Hero Honda bikes.

➢ To know the customer expectations regarding that particular bike’s. ➢ To find out the respondent’s/consumer opinion’s about Hero Honda. ➢ To know the factors those are influencing consumers to buy Hero Honda bikes. ➢ To find out the effect on media, advertisements on consumers of Hero Honda bike’s. ➢ To find out whether the consumers recommend Hero Honda to others. ➢ To give appropriate suggestions to company and enhance their performance.

5.1

SCOPE OF THE STUDY:

This study is aimed at providing HERO HONDA at MAJESTIC MOBIKES PVT LTD. (Authorised dealer of Hero Honda) with an insight on the buying behaviour of consumers and its patterns regarding Hero Honda bikes as well as the customer’s response and awareness towards the brand, products, services and other aspects of Hero Honda

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The data has been analyzed and presented in a simple and precise way on the basis of which pertinent recommendations have been made to the company to better the services, policies and strategies of the company in India. Companies also want the Suggestion for improvement from consumers of Hero Honda & get Feedback from customer.

5.3 FINDINGS: 1. Being the capital city of Karnataka, Bangalore city has the potential for bikes. Nowadays youth’s middle age and their preference is towards Hero Honda Bike’s, with stylish design and increased mileage options.
2. Most popular bikes in Hero Honda are Karizma and Splendor.

3. 48% of the respondents tell Hero Honda bikes have superb mileage than other company bikes. 4. Majority of the Hero Honda buyers are Students and other occupations. 5. 42% of the respondents did not test drive their models before purchase. 6. 57.14% of the respondents did not know the test drive option at all. 7. 66% of the respondents came to know Hero Honda through Friends. 8. 52% of the buyers were motivated by their friends/relatives to buy Hero Honda. 9. 86% of the buyers will recommend Hero Honda bikes to others.
10. 74% of the respondents are satisfied with Majestic Mobike Dealer.

11. 48% of the respondents feel excellent about availability of models at dealer’s showroom.

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12. 54% of the respondents feel average towards sales executive response towards them. 13. 44% of the respondents want engine guard with the bike.
14. 66% of the respondents who prefer Hero Honda bikes are young and middle aged

people (21-40 years). The preference levels of other age groups are rather low because of the safety concern. 15. 64% of the respondents are having/had bike. 16. 31.25% are Loyal to Hero Honda Brand. 17. 68.75% of the respondents are not very satisfied with their company bike which they had/have. 18. 52% of the respondents feel Hero Honda is a trusted brand than others.

19. 64% and 85.71% of Splendor product buyers feel it has economical maintenance cost

and price respectively.
20. 60% and 80% of Passion product buyers feel it has economical maintenance cost and

pricing respectively.
21. 66.6% and 53.3% of Karizma product buyers feel it has High Maintenance cost and

price respectively.
22. 57.14% and 87.71% of CBZ-xtrem buyers feel it has economical maintenance cost

and high pricing respectively. 23. 55.55% and 66.66% of Glamour buyers feel it has an economical maintenance cost and high pricing respectively. 24. Only 50% of the respondents know the Brand ambassador of Hero Honda. 25. 30% of the respondents feel poor towards services rendered before purchasing a bike. 26. 56% of the respondents feel good about the infrastructure of the dealer’s showroom. 27. 88% of the respondents feel split up of hero and Honda will have effect on hero group in future.

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5.4 CONCLUSION:

Indian 2-wheeler industry is the second largest in Asia after China. After the merger with Honda Motors the main focus of Hero group has been to capture the Indian Market through its Product which are Best In terms Of Style, Design and mileage and other aspects and it is trying to achieve more target of which it has laid down for the coming years. Young generation and middle aged people are more interested in buying Hero Honda. Especially students are more buyers of Hero Honda as it had good features, styles, designs and mileage aspects. Hero Honda has very good loyal customers. This loyalty is based on the performance of Hero Honda. Most of the two wheelers are not satisfied with the model which they had/have, so they are opting Hero Honda as their new model. Splendor and Karizma are the most preferred models in Hero Honda, as it had superb mileage and great looks respectively. Why consumers are choosing Hero Honda are because of the mileage factor. Today fuel price are raising and middle class people cannot afford costly bikes with less mileage. Hero Honda is the company with provides both style as well as mileage. Majority of the respondents feel it is much trusted brand compared to other companies. Hero Honda’s pricing strategy is economical and can be affordable by common man as well. In a country like India where customer generally appreciates mileage it becomes

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necessary for a company like Hero Honda to produces Bikes whose prices are economical and more fuel efficient. After analysis, Hero Honda products are generally made for the Indian roads and for Indian economy and so it has made the Hero Honda to play a role in future too. There are certain factors upon which the Hero Honda has to improve regarding the consumers buying behaviour factors like price, fuel, fashion, good resale value, safety, road grip, prestige and brand name. If these aspects are increased a bit by Hero Honda then we might see an overall dominance by Hero Honda in future.

6.1 SUGGESTIONS: After studying the survey results some important suggestion can be evolved. In the questionnaire a question’s on Hero Honda and its products were discussed. Some of the respondents have given very good response towards those. Now Hero Honda should look after its improvement with changing market and advertisement policy in order to bring the Bikes in to a still more new attractive and stylish model with all extra ordinary qualities. The Suggestions are follows: 1. Youths are more attracted and impressed by the performance of Hero Honda’s products, so they prefer more towards Hero Honda than other two wheelers company, so the advertisement and sales promotion should be targeted primarily towards them in an effective and efficient manner. 2. Hero Honda should also advertise their models frequently in TV media in a proper manner to create the awareness about the new models and attract some more consumers.

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“A Study on Buying Behaviour of Consumers”
3. Hero Honda should know the consumer expectations towards the bike by providing

additional features and additional accessories with the bike like, Helmet lock, buzzer indicator, Teflon coating and engine guard.
4. Hero Honda should reduce the pricing aspects of Karizma, CBZ-xtrem and Glamour

for better sales in these products and this will definitely increase the sales. 5. Hero Honda should always keep track with the uncertain changing trend and fashion and come up with still more stylish Bikes. 6. Hero Honda should come up with new products like mopeds and should also come up with sports models.

7. Hero Honda should increase its features in all the models like, displays, buttons and others aspects to enhance its sales.
8. Hero Honda’s Karizma has a high pricing, if they can reduce its price there will be

increase in its sales too.

9. The dealers should recommend the customers for opting a test drive before purchase

as customers will not know about this service. 10. Hero Honda should come up with new advertising strategy.

11. Only few respondents know about the Brand ambassador of Hero Honda, they should project in a proper manner for the awareness. 12. The dealer should improve the sales executive’s response towards customers as to maintain a good relationship.

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“A Study on Buying Behaviour of Consumers”
13. The dealer should improve the service aspects before purchase like, test drive option for capturing the customers values. 14. The dealer should provide some offers like, exchange offers and provide discount for loyal customers.

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