IEC College of Engineering & Technology, Greater Noida Department of Business Administration

RESEARCH PROJECT REPORT (MBA-413)

ON

AN ANALYSIS OF TWO WHEELER SEGMENT IN AUTOMOBILE INDUSTRY HIGHLITING BAJAJ & HERO HONDA
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) BY (U.P. TECHNICAL UNIVERSITY, LUCKNOW)

Research Completed Under the Supervision of Mr. SHAKTI PRAKASH

SUBMITTED TO:
HOD-MBA DEPTT. Semester)

SUBMITTED BY:
ANSHUL KUMAR Roll No.: 0709070017 MBA (4th

BATCH : 2007-2009 ACKNOWLEDGEMENT

With a sense of gratitude, I would like to express my indebtedness to Mr. Rajnish Up pal Hero Honda Motors Ltd., for giving me an opportunity to under take this Research on Consumer opinion Regarding leading Brands of Hero Honda Motor Bike In India in this esteem organization.

I would like to thank Mr. A. K. Mitra, Faculty Guide, IEC College of Engg. & Technology, Greater Noida for his constant guidance to conduct the present arduous research and untiring cooperation which he extended to me throughout the duration of my research.. My special thanks are for those who spared time for providing information and responding to the questionnaire.

ANKIT SINGHAL

PREFACE
As a part of MBA 4th Semester degree course a student is required to undertake short term Research project. The objective of this study is to provide an opportunity to student to familiarize themselves with the practical aspect of problems in particular field.

This Research has been very useful learning experience. Enriching knowledge. In field of marketing research statically application and decision making process.

TABLE OF CONTENTS

Part I INTRODUCTION ABOUT THE COMPANY

THE HISTORY OF THE COMPANY STRUCTURE OF COMPANY PRODUCTS & SERVICES PLANS & BUDGETS MARKETING POLICY & PRACTICES PERFORMANCE IN THE MARKET PLACE & SHARE PROBLEMS FACED BY THE COMPANAY

Part II

INTRODUCTION OF THE TOPIC OBJECTIVES RESEARCH METODOLOGY DATA ANALYSIS & INTERPRETATION FINDINGS SUGGESTIONS

 LIMITATIONS & CONCLUSION BIBLIOGRAPHY & APPENDICES

INTRODUCTION OF HERO HONDA MOTORS LIMITED

HERO HONDA MOTORS LIMITED

OVERVIEW

Hero Honda Motors Ltd., the manufacturer of India Largest selling 100 CC Motorcycles was incorporated on Jan. 19, 1984. Hero Honda is a successful blend of two unique cultures & world market leaders i.e. Honda Motor Company of Japan & Hero Group of India . The partnership between Hondas & Manuals to manufacture 100 CC Motor bike has been one of the most successful Indian joint Venture ever. HHML has brought to India a revolution on Two Wheeler by famous advertising campaign Fill it-Shut ItForget it . Today 2 plants of HHML are located on Delhi-Jaipur highway.

HHML DHARUHERA PLANT

LOCATION : 69th KM Stone Delhi-Jaipur Highway Dharuhera -122 106 Dist. Rewari (Hr.) Tel. 01283-2131-35 Fax. : 01283-2399

ESTABLISHED AREA Total Covered MODELS

: 19th Jan, 1984

: 2,48,000 sq. mts. : 58,183 sq. mts. (23.5%) : CD-100, CD-DELUXE, CBZ, SPLENDOR

HMHL GURGAON PLANT LOCATION : 37th Km. stone Delhi Jaipur Highway Sector 33, Gurgaon -122 001 Haryana Tel : 0124-304123-132 ESTABLISHED AREA Total Covered MODELS : 2,99,000 sq. mts. : 47,200 sq. mts/ (15.8%) : STREET, SPLENDOR, CBZ : 24TH FEB, 1997

HEAD OFFICE

LOCATION

: 34, Community Centre Basant Lok, Vasant Vihar New Delhi - 110 057 Tel. : 614-2451 (9lines)

HISTORY OF COMPANY

Honda Motor Company, Japan:

Honda motor company the worlds largest manufacturer of Motorcycle, commanding 25% of world's & 50% of Japans Motorcycle market, was incorporated in 1948. Today Honda name has become the guarantee of the technological & manufacturing excellence of any product. It involved in automobiles & power product (Lawn Mowers, generators and Out board Motors). It has 83 overseas production facilities in 35 countries, looked after by a 93,000 strong force.

Hero Group of Industries

What began in Ludhiana in 1951 as a small unit manufacturing Bicycle parts has today emerged as Rs. 2500 Crores industrial Colossus - Hero Group of industries. Munjal brothers set it up. The operations of group cover a wide spectrum of consumer & Industrial application including motorcycle, light motorcycles, mopeds, automotive components & industrial supplies. Hero Cycles is in Guinness Book of World Record as Worlds largest bicycle manufacturer. It has also received several National & International Awards for Excellence. The search for Excellence led to creation of companies like Hero Cycles Ltd. (1956), Gujrat Cycles Ltd. (1988), Munjal Showa Ltd. (1985), Rockman cycles industries Ltd. (1961) Etc.

Since the company maintains the ethos of Perfect Quality, it has helped the group attain its global stature. Besides maintaining the quality standards it has developed home-grown Research & Development facilities to enhance its production so as to stride further.

HISTORY & GROWTH

Under motorcycle segment HHML is the market leader with 42% share in the market. Its nearest competitor Bajaj Auto has 24% market share . It's true that lot of Hero Honda's success is due to the fact that for a long time it operated in a near monopoly situation, it was the only 4 stroke motorbike & offered customer an incredible 85 km for every time . But even with the competition in the past few years, Hero Honda has effortlessly maintained its lead.

In the year 1988-89 the production & sales mounted to 744,014 nos. & 74,027 nos. respective & turnover was Rs. 104.54 crore. In 1989-90, the Company produced & sold 96,325 & 96208 bikes respectively. The total turnover at Rs. 152.62 crores reflected an increase of 9.5% over the previous year when compared on an annualized basis. The company introduced a new model "sleek" during July 1989. The market response for the new model was reported to be satisfactorily. During 1990-91, production rose to 1,20,091 nos. & 120,055 motorcycle were sold for a total consideration of Rs. 195.75 crores.

In the domestic market, company was planning to launch a new Model Motor Cycle - CD 100SS suitable to semi rural conditions. In the incarnation front plans were aft to enter the African Market. Possibilities were being exposed to export motorcycles in completely knocked down conditions to Iran & Mauritius.

In the domestic market, the company was reposed to have an mkt share of 46% during 1990-91. During 1991-92, turnover & production, increased to Rs. 275.72 crores & 135260 no. During 1992-93 turnover increased moderately despite reassign in the automobile sector. However production was lower at 1, 28,649 motorcycles. During 1992-93, turnover & production increase to Rs. 307.26 crores & 1,28,649 motorcycles respectively. During 1993-94 turnovers improved to Rs. 369.99 crores & Production improved to 148,000 motorcycles. In the year 1994-95 production & turnover increase to 1, 83,490 motorcycle & Fax: 614 3321, 614 3198

STRUCTURE OF COMPANY

MISSION
Maintaining an international perspective, the company is dedicated to provide highest quality products at reasonable price for World - wide customer base.

COMPANY'S MANDATE
* To be world class manufacturer * To be market leader. * To achieve high level of customer satisfaction. * Excellence through teamwork. * Enduring relation unit stakeholder

CORPORATE OBJECTIVES:

* To study products of highest quality at reasonable price for customers satisfaction & for the benefits of society in general.

* To provide all concerned persons with happiness in association with the Company. * To offer joy to vendors of supplying components. * To offer joy to employees of manufacturing

To offer joy to dealers of selling products. * To offer joy to customers of using products. * To offer joy to investors of receiving returned.

NAME OF THE CHAIRMAN AND BOARD OF DIRECTORS

No. 1

Name of the Directors Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Toshiaki Nakagawa

Designation Chairman & Whole-time Director Managing Director Jt. Managing Director

2 3 4 5 6 7 8 9

Mr. Takao Eguchi Whole-time Director Mr. Satyanand Munjal Mr. Om Prakash Munjal Mr. Tatsuhiro Oyama Mr. Masahiro Takedagawa Non-executive Director Non-executive Director Non-executive Director Non-executive Director

Mr. Narinder Nath Non-executive & Vohra Independent Director Mr. Pradeep Dinodia Gen.(Retd.) Ved Prakash Malik Mr. Analjit Singh Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director

10

11

12

13

Dr. Pritam Singh

14

Ms. Shobhana Bhartia

15

Dr. Vijay Laxman Non-executive & Kelkar Independent Director Mr. Sunil Bharti Mittal Non-executive & Independent Director

16

FOREIGN COLLABORATION

FOREIGN COLLABORATION
By merging 2 different Philosophy Hero Honda philosophies was born. As per the collaboration agreement between Honda Motors & Hero Group, Honda Motors was to furnish complete technical information, know how, trade secret & other relevant data to HHML & was to assist & guide in selection of equipment. They also agreed to train the technicians of the company, to

provide information about the construction of the plant & on procurement of the components. In consideration to their services, HHML was to be paid a lump sum fee of U.S. $ 500,000 in 3 equal installments & a royalty of 4% on the net ex-factory & all prices of the product. The duration of the agreement was for a period of 10 yrs. from 21st June.

483.85 crores due to growth in demand for 2 wheelers & declining infection during the year 1995-96. Turnover increased substantially to Rs. 640.70 crores & production was 226211.During the year 1996-97 turnover improved to 783.83 crores & products increase to 268931 motorcycles. A new step through model "street-100" with unique feature was launched on 24th January 1992. During this year (97-98) company has produced & sold 407546 motorcycles compared to 268931 last years registering a growth of 51.5%. Turnover grew by 48% to Rs. 1160.72 crores during the year. Street 100 model has made a strange presence in the very first year of its launch. Constituting around 10% of the total sales. In the year 1998-99 sales turnover has grown up to 15529.

SALES PERFORMANCE OF THE COMPANY

COMPANY PERFORMANCE

Hero Honda maintained its grip in the motorcycle segment with a lead of more than one million motorcycles over its competitor and a market share of 48 per cent. Overall, your Company accounted for 40 per cent of the Indian twowheeler market. Total sales grew by 17.4 per cent to Rs. 8,714 crores in 2005-06. Similarly, operating profits rose by 16.2 per cent to Rs 1,256 crores while post-tax profit grew by 19.8 per cent to Rs. 971 crores. Your Company in aggregate sold a little over 3 million units in 2005-06 compared to 2.62 million units in the previous year, a growth of 14.5 per cent. The best-selling Splendor family doubled sales from 600,000 to 1.2 million.

SALES PERFORMANCE
HERO ENDS

March'05

March'06

March07

March08

Total Sales

272,312

277, 915

30,00,751

33,36,756

HERO HONDA SALES

Business Highlights for the Financial Year Impressive growth driven by multipronged strategy, with a slew of new product launches across segments, value-added services, extensive 360 degrees communication, & leveraging longstanding Hero Honda brand properties for brand building Overwhelming customer response to new launches such as Hero Honda CBZ X-treme, new Karizma, Glamour with alloy wheels; new CD Deluxe & CD Dawn Redefined industry benchmarks in sales; posted record despatch sales and retail sales

Path-breaking two-wheeler technology introduced, in the form of Glamour with Fuel Injection (FI) technology Added a new venture Hero Honda Sure! for pre-owned motorcycles; another benchmark redefining initiative, sets up 15 such outlets across the country Achievements for the Financial Year HHML adjudged 7th Top Indian Company by Wallstreet Journal Asia HHML ranked No.1 in Customer satisfaction index by CSMM-Business World Loyalty Report CBZ X-treme awarded Bike of the Year by Overdrive Magazine, BS Motoring Magazine and NDTV Car India Bike India Awards Hero Honda Glamour FI Awarded Bike Technology of the Year by NDTV Profit Car India Bike India, and Auto Tech of the Year Award by Overdrive magazine Record dispatch sales of over 363,480 units & retail sales of 531,716 units in a single month in October Retains the coveted position of being the Worlds No.1 two-wheeler company in unit sales for six years in a row New Delhi, April 1, 2007: Hero Honda Motors Ltd. (HHML), clocked sales of 277, 915 twowheelers in the month of March, thus ending the financial year 2006-07 with an impressive cumulative tally of 33,36,756 units. The Company had registered sales of 272,312 units in March 2006 and a cumulative 30,00,751 units in the previous fiscal (2005-06). The financial year 2006-07 witnessed the Company report impressive growth and record sales, consolidate its market leadership, and bring about a series of industry defining initiatives. According to Mr. Anil Duo, Vice President Marketing & Sales, HHML, Our well thought-out multi-pronged strategy helped us carry on the strong growth

momentum during the financial year 2006-07. The strategy has been to bring out products to meet customer requirements across segments, provide valueadded services, support the new products with extensive 360 degrees communication, and leverage longstanding Hero Honda brand properties for brand building. We are sure of carrying forward this momentum in the coming financial year too. HHML launched as many as eight new products (including variants) during 2006-07. This included the highly successful CBZ X-treme, New Karizma, Glamour FI, Glamour with alloy wheels, CD Deluxe, CD Dawn, Passion Plus Limited Edition and the New Achiever. While highly popular brands such as Splendor and Passion Plus continue to bring in the large volumes and keep consolidating the companys stronghold on the deluxe segment, the newly-launched CD Deluxe has been clocking impressive numbers to build HHMLs presence in the entry segment. The other big launch, CBZ X-treme has shaken up the premium segment, and has been clocking an impressive 15,000 to 20,000 units per month. CBZ X-treme has already crossed the 50,000 mark in a very short time since its launch late last year. It is the success of these new products launched during this financial year, as also the aggressive marketing campaigns, which have helped HHML register better-than-industry growth continuously in the last few months. __

MOMENTS OF PRIDE

Lowest Accident Frequency Rate Award: Received First position award in 1989, 1990, 1992, 1993 & 1994. Longest Accident Free Period Award: 1989, 1990, 1992, 1993 & 1994. Best Working Conditions: First prize in 1990, 1993. Received First position award in

Awards also received for Best Maintenance of Environment & of Effluent Treatment Plant, Best Performance, Best First Aid Arrangements, National Safety Award 1993 under scheme I & II, National Safety Award 1994 under scheme I & II (All of them of First Position). And for Regional Work skill Competitions in Miller Trade and in Turner Trade, CII Regional Quality Circle Convention of Jaipur, Lucknow AND QCFI Delhi Chapter Quality Circle Convention etc.; (All of Second Position). And others like National Trophy on Quality Circle, National Award for outstanding Contribution Towards the development of small scale industries, Distinguished Entrepreneurship Award 1997, Businessman of the Year 1994 conferred on our Chairman.

WORKING PHILOSOPHY :

Hero Honda is the market leader among motorcycle segment. Working Philosophy of HHML is the root case that has made it market leader. Hero Honda believes in 5S i.e. Seiri - Select Necessary Items Seiton - Set Necessary Items in Good Order Seiso - Sweep up Work places Seiketsu - Secure cleanliness at all times Shitsuke - Set Habit Hero Honda believes in "Quality" i.e. Quality of Product", "Quality of Organization, "Quality of life", " Quality of worker". Company has sufficient supply all the 5 M's required to run a business i.e. material machinery, money, manpower & Market. But still company is continuously trying to improve the quality of all these things. More over, Company is conscious to supply high quality to their customers. Quality of manpower is simultaneously improving through various programs. Co. is also improving the Quality of product by using latest technology. Secondly company believes in Development i.e. "Development of

organization, Development of employees" & "Development of community for the development of organization. Company encourages meaning participation of its employees. Company has a new plant at Gurgaon i.e. the

result of companies consciousness about organization development of its employees, company is putting so much effort that any organization can. Company has organized is organizing & also is planning to organize various training & development programmers for all levels of workers. These

programs have result in continuous growth & improvement of its employees. Now the company is conscious to the fact that growth & progress of its employees & the company is interdependent. The companies strikes to create an atmosphere where team spirit & mutual understanding could grow & where its team members may work happily & derive joy & pleasure company has also done a lot for the community development. Company has provided its eye camp, Blood donation camp, Rehabilitation camp, Drinking water, ambulance & mobile clinic for good health of people living in near by villages. For

providing good education to them, company has opened school & craft training center near the company. Company also trying to maintain plantation & greenery to control pollution. Company trying to removes the problems faced from grass root. Dignity of human being at all level. All Employees at HHML are same. Next the company believes in Equality . "Equality of caste" Equality of thought " Equality of religion race, sex, nationality etc. It respects the dignity of human being at all level. Whether be, a worker of A.G.M. are wearing same dress, having same food & coming by same bus.

All there things show that HHML doesn't differential between a worker & manager. Don't even they consider their worker as "work tool". By organizing TRAINING & DEVELOPMENT programs for the self-development of worker company tries to use brain of their worker because they are equally responsible for the development of organization.

PRODUCTS OFFERED BY COMPANY

PRODUCT LAUNCHES

For more than two decades, Hero Honda created brand equity for itself by putting together best-in-class portfolios and new technologies. Your Company also launched new engine platforms in 125cc and 150cc categories, and is planning several new launches in the forthcoming year. We've already introduced cutting-edge Fuel Injection technology in one of our products, Glamour FI, making Hero Honda the first two-wheeler Company in India to do so. Over time, we expect to cascade this technology across other models. Apart from successfully launching of 4 new models during the year in review, your Company made its debut in the scooter market with the 100cc offering called Pleasure targeting women commuters and home makers. The products, which are mostly sold through a chain of unique all-women retail outlets, were received well by the market, and we hope to gain critical mass over the next few year.

Hero Honda Products

CD DAWN CD-DELUXE PLEASURE SPLENDOR PLUS SPLENDOR NXG PASSION PLUS SUPER SPLENDOR GLAMOUR GLAMOUR PGM FI ACHIEVER

CBZ X-TREME HUNK KARIZMA

HERO HONDA CD -100

FILL-IT, SHUT-IT, FORGET-IT Hero Honda CD-100 is the main, first 4 stoke 100 cc motorcycle of India that has set standards in the Indian 2 wheelers Industry. The reasons for its popularity are apparent Economy, Quality, Reliability & Capability to go on year after year. It's engine is derived from Honda's Legendary econo series for motorcycles that have proved their toughness & reliability around the hold for the last 35 years, having sold over 30 millions units house wise. And ace to Mr. Soichiro Honda, the founder of Honda Motor Company , the engine has been upgraded over the years to achieve the highest level of performance. Other Features are

FEATURES
-Phenomenal fuel efficiency -Economical & easy to maintain -Nation-wide service Support -Improved, easy to read, illuminated Speedometer -Swing arm with Hydraulic Dampers

HERO HONDA SLEEK

The need for a stylish looking bike having Hero Honda's famous fuel economy gave birth to sleek, the most beautiful bike on Indian Roads, in September 1989. It is a bike designed with the flair of International styling & meant to arouse excitement in man who is driven by something beyond the ordinary. Sleek always has its effect on people because of the reasons like

FEATURES
-Moves you even when it is standing still with a racy, streamlined sides -Easy rider with new profile Handlebar & single-piece moulded seat -Fuel Efficiency -Trendy colours & slim good looks -From HERO HONDA, after all

HERO HONDA CD DELUXE

ROUGH & RUGGED

HHML's commitment to its customer took the shape of CD DELUXE which was launched in 2000.It adds a new dimensions of strength to HHs world famous 4-Stroke Technology. It is another tough mobike -represents Toughness & Ability to handle even off the road for riding condition. All meant to make the bike safer, sturdier & more stable than before .

FEATURES
Wider tyres to grip the road Larger, reinforced Shock absorbers-to soak up bumps on unkind roads Heavier body weight- to ensure balance & strength Special Engine guard- to protect it from assault of sand, mud & stones etc.

HONDA SPLENDOR
DESIGNED TO EXCEL Stylish fuel economy bike, having high mileage and suspension power. excellent speed and velocity

FEATURES Designed to excel in field of technology. High suspension Easy handling of brakes

Passion plus
It is a bike designed with the flair of International styling & meant to arouse Excitement in man who is driven by something beyond the ordinary .

FEATURES Famous4-StrokeTechnology. Stylish, smart looking, excellent fuel efficiency

-Trendy colours & slim good looks

GLAMOUR
New style of new generation.125 cc bike with high style fuel capacity. bike is facilitated with high world efficient technology.glamourous passionate looks.

FEATURES Stylish look Efficient fuel capacity up to 16 liters New range of handling capacity Featuring fuel ignition technology Varied colours and styles

GLAMOUR PGM FI
Featuring the Japanese technoly of handing the fuel-ignition linkage in case of sudden stoppage or accident. New technology has added a landmark in the field of speed, Style, comfort and luxury

ACHIEVER
Achiever has acted as a land mark of speed and passion loving for new Generation. New designed high framed engines Speed reaching in speedometers upto 180 km. New age of automobiles. Elastic,cool,upwards straight seats. Bikes ranging in various lovable colours.

CBZ XTREME
Fifth generation bikes,huge mileage,well fuel efficiency Sports bike main stress on sped and looks RPM ranging upto 5000rpm. Handling is comfortable 0-90 km in just 6 seconds. Lovely rash colours

HUNK
Acting as a machine horse High in every field sped,comfort,mileage,style,looks,features. Creating zero noise pollution Excel in Japanese measurement ofmechanism. Fuel tank stylish and big Trendy pleasing look for heavy luxurious people

KARIZMA
Varied luxurious colours Heavy gaint appealing look,featuring high sped. Antilocking system Costlier and noise less Featuring a new range of electronic meter Lights and looks are trendy

PROBLEMS FACED BY THE COMPANY

INDUSTRY CHALLENGES AND OPPORTUNITIES

The Indian two-wheeler industry saw an increase of 15 percent during the year. Two-wheeler sales crossed 7.5 million units mark, which accounted for more than 80 percent of domestic auto sales. Motorcycles shared around 82 percent of the entire two-wheeler sales. However, industry margins came under some pressure during the year in review because of an increase in input prices of steel, aluminum and rubber. Operating margins were also affected on account of erratic power supplies and high costs of back up power.

Nevertheless, the upside potential for the future is still extremely high because of the sheer potential for volume growth. I believe that your Company has barely scratched the surface in terms of optimizing potential. According to NCAER, there are about 225 million people about 22 per cent of the populationwho live in households that have an annual income range of Rs. 90,000-200,000. Large towns (population of over 500,000) have about 30 per cent of this population, while rural India has about half of this income group. These groups are the real growth engines for the great Indian dream, because at these levels, a number of inspirational and discretionary purchases (which includes two-wheelers) are within reach. Against this backdrop, your Company should be able to comfortably sustain double-digit growth in the medium to long term, despite increasing competition.

OBJECTIVES OF THE STUDY

OBJECTIVES
To analyse the social status, economic status, tastes, preferences, reasons behind purchase of Hero Honda Customers. To overview various Hero Honda products image among competitors To protect customers interest for companies products To make an overall assessment of specified market to provide a better new age of automobile industry

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

All progress is born of inquiry, doubt is often better than over confidence for it leads to inquiry leads to invention is
a famous Hudsons dictum in context of which the significance of research can well be understood.

1. I visited the dealers & customers and gathered information required by the questionnaire.

2. For employing strong based to the research I tried to inquire the positions of HERO HONDA MOTORS LTD., motorcycles and how satisfied they are with them if they are already selling those.

3. Final ranks were obtained by giving weight to individual ranks possessed by the respondent to make the research more reliable. Coding and tabulation of data were made for the purpose of analysis and to give it a graphical view.

RESEARCH PURPOSE
To analyze customers buying behavior regarding leading brands of Hero Honda To identify the major segment of bike lovers To know there requirements regarding features, mileage

RESEARCH DESIGN
Exploratery and Descriptive research Sample survey: Retailers and customers (150) Area of survey: Delhi and Noida Data type: Primary data and secondary data Sample selection: Convenience Data collection method
The data for research report was collected by customers during marketing of products and with retailers

RESEARCH INSTRUMENT

Questionnaire and observation are two basic methods of collecting primary data. In our study we have employed both the methods for the collection of primary data that suffices all research objectives. Secondary data sources like catalogue of company, product range book of the company are also used.

DATA ANALYSIS

GRAPHICAL REPRESENTATION TABULAR REPRESENTATION

 GRAPHICAL REPRESENTATION

Brand Awareness among the consumer based on 1st response No of respondents=150

60 50 40 30 20 10 0 Hero honda Bajaj Others No. of customer %age

Familiarity of Brands in four stroke segment

No of respondents Brand Name HERO HONDA BAJAJ TVS LML No of customer 35 70 25 25 %age 46.66 32.8 16.66 16.66

HERO HONDA BAJAJ TVS LML

TABULAR REPRESENTATION

HERO HONDA CUSTOMER PROFILE ANALYSIS AGE (in absolute figures and %)
Age(Yrs) 18-25 26-30 31-35 36-40 41-45 46-50 50&above BASE CD 100 9 32.14 9 32.14 5 17.85 2 7.14 2 7.14 1 3.57 0 0 28 CD deluxe 13 29.5 13 29.5 7 16 7 16 5 11.4 1 2.3 0 0 44 SPLENDOR 06 35.8 21 28.8 10 18.4 7 7.1 7 3.3 5 4.7 4 1.9 60 8 5 1 2 0 0 0 16 KARIZMA 50 31.3 6.3 12.5 6.25 0 0

EDUCATION (in absolute figures and %)

EDUCATION Upto matric HSC/SSC Attended College Diploma Graduate Post Graduate Professional Degree BASE

CD 100 7 25 6 5 1 7 1 1 28 21.4 17.9 3.6 25 3.6 3.6

CD deluxe 13.6 25 13.6 18.2 15.9 13.6 0

HUNK 24 11.3 25 21 25 20 12 25 60 11.8 9.9 11.8 28.3 15.1 11.8

CBZ 2 4 3 2 2 0 3 16 12.5 25 18.8 12.5 12.5 0 18.75

11 6 8 7 6 0 44

OCCUPATION (in absolute figures and %)

OCCUPATION CD 100 Student 2 7.1 Officer/executive Own Shop/Trader Bussiness/industry Self Employed Farmer/farm related Retired Unemployed Others 1 3.6 8 28.6 4 14.3 5 17.9 6 21.4 0 0 1 3.6 1 3.6 BASE 28

CD deluxe 7 16

SPLENDOR 37 17.5

KARIZMA 7 43.75

10 10 9 5 0 1 1 1 44

22.7 22.7 20.5 11.4 0 2.3 2.3 2.3

24 22 29 13 2 0 5 16 60

30.2 15.1 13.7 15.6 .9 0 2.4 7.5

2 2 4 0 0 0 0 1 16

12.5 12.5 25 0 0 0 0 6.25

INCOME (in absolute figures and %)

INCOME Upto 5000 5001-7000 7001-10000 10001-15000 15001-20000 20001 & above BASE

CD100 10 35.7 5 17.9 5 17.9 8 28.6 0 0 0 0 28

SPLENDOR 10 22.7 13 29.5 15 34.1 5 11.4 1 2.3 0 0 44

HUNK 05 16 06 22 8 15 60

16.6 35.8 26.4 10.4 3.8 7.1

0 0 2 2 4 8 16

CBZ 0 0 12.5 12.5 25 50

INTENSITY OF PURCHASE (in absolute figures and %)

INTESITY CD100 OF PURCHASE Never Once 11 39.3 Twice Three times Four times and above 9 32.1 6 21.4 2 7.1 0 0 BASE 28

CD deluxe 27 61.4

SPLENDOR 50 44.6 13

KARIZMA 81.3

11 6 0 0 44

25 13.6 0 0

40 15 4 3 60

35.7 13 3.6 2.7

3 0 0 0 16

18.8 0 0 0

PURPOSE OF USE (in absolute figures and %)

PURPOSE OF USE Commuting to and from work Going to school & college Going out with family Carrying goods or bussiness Office/ bussiness related travel Others BASE

CD100 11 7 7 1 2 39.3 25 25 3.6 7.1 18 7 8 3 5

CDdeluxe 41 16 18.2 6.8 11.4

SPLENDOR 14 30 18 10 13 53.8 14.2 8.5 4.7 26.4 2 7 2 0 5

CBZ 12.5 43.8 12.5 0 31.3

0 28

0 44

0 60

0 16

USAGE AREA (in absolute figures and %)

USAGE AREA CD100 With in city On 15 53.6 highways Rural areas 5 17.9 8 28.6 BASE 28

CDdeluxe 28 63.6 8 8 44 18.2 18.2

SPLENDOR 40 83 11.7 8 60 13.2 3.8

9 5 2 16

CBZ 56.3 31.3 12.5

RESIDENCE (in absolute figures and %)

RESIDENCE CD100 City/Urban area 13 46.4 Village 15 53.6 18.8 28

CDdeluxe 29 65.9 15 44 34.1

SPLENDOR 46 93.4 14 60 6.6

CBZ 13 6.6 16 81.3 3

INTERPRETATION

AGEWISE :

Hero Honda bikes are more popular among age group18-30yrs.

OCCUPATION WISE:
Officer/Executives and Industry related people have an important role to play in purchase of all kinds of bikes. Retired and unemployed are found to be least interested.

INCOMEWISE
High-income groups and very high-income groups (i.e. above 15000) have a very limited share in purchase. Majorly preferred by people falling in income group upto Rs. 10000.

REASONS FOR PURCHASEWISE :

Good looks, ease of driving and fuel economy are the main reasons for

purchase of all Hero Honda bikes. CBZ has been successful in attracting customers because of its features like good looks, ease of driving, disk brakes etc.

EDUCATIONWISE :

Overall educational levels are low. Respondents up to metric, HSC/SSC and graduates are more active than the post graduates and the professional degree holders. Share of professionals is considerably low.

USAGEWISE :
All the bikes are majorly used within the city only. Use in villages/rural areas is very low.

PURPOSE OF USE :
The major purpose of usage is commuting to and from work. Office and business related travels also accounts for a considerably percentage of usage.

RESIDENCEWISE :
A major portion of buyers is residing in urban areas. The numbers of buyers residing in rural areas is considerably low in case of SPLENDOR and less in case of CBZ.

INTENSITY OF PURCHASE WISE

First time purchase prevailing. Less repeated purchases.

SWOT ANALYSIS OF HERO HONDA MOTER LIMITED

STRENGTH
Technical and financial collaboration with Honda. Wide range of motor bike Extensive research and development both in house development facility interface with other independent engineering units. Large and competitive workforce. Producing challenging product in market

WEAKNESS
Insufficient in capturing the southern market in India. Not using brand loyalty for the customers

OPPORTUNITY
Boast up production to fully utilize the installed capacity To take the monopoly in motor vehicle category where the competition is much more increased.

Effectively meet the demand created by way of operation victor creating awareness among the rural consumers.

THEARATS
Sever competition by light motor and heavy vehicle faced from the side BAJAJ. Stiff competition with BAJAJ AUTO which has now increase market with active participation in both northern and southern market.

Change in Government fiscal policy towards import and customer duty.

FINDINGS

The age group 22-35 year figures out to be very much aware regarding to wheelers.

Mileage was given top priority Style and power considered most purchasing PowerPoint today. People want to less maintenance of two wheelers. The percent of rural and urban market is as 35% and 65%.

RECOMMENDATIONS AND SUGGESTIONS

RECOMMENDATIONS

It seems that Hero Honda has not been successful in penetrating the rural market. There is a large scope for the company in rural areas. Marketing efforts should be directed towards the rural segment. Massive

advertisement with highly specialized ad-message towards people in rural areas should be made. Repeated extending various promotional schemes such as Exchange offer should encourage purchases, Road Tax off offer etc which have been already adopted in case of Street to others models. CBZ has been successful in attracting customers because of its special features and good looks. Such features should be focused in advertisement messages. Professionals have a low share in purchase. They should be targeted with a bike to suit their personality and requirements. High-income groups and very high-income groups should be targeted as they also have a slow share in purchases. A new high priced bike can be launched to attract them with highly specialized unique features

CATCHY CAPTIONS

Your life is an asset for your family, we are liable for it . -HH Motors

We know how much your family cares for your safety. We too . -HH Motors

We Care. -HH Motors

APPENDIX

BIBLIOGRAPHY

BOOKS MARKETING MANAGEMENT FUNDAMENTALS OF MARKETING PHILIPKOTLER W. STANTON

NEWSPAPERS THE INDIAN EXPRESS THE TIMES OF INDIA THE ECONOMIC TIMES

MAGAZINES INDIA TODAY BUSINESS WORLD WEBSITE HEROHONDA.COM

QUESTIONNARE

QUESTIONNARE

CONSUMER OPINION REGARDING LEADING BRAND OF HERO HONDA BIKE IN INDIA

NAME AGE PROFESSION INCOME ADDRESS DATE : : : : : :

CUSTOMER SATISFACTION

1. Name of the brand you are familiar with in the two wheeler segment. 1.Hero Honda 2.Bajaj 3.Others

2. Are you satisfied with the company service process? 1. Yes 2. How much percent of repeat Business. 1.25 2.50 3.75 4.None of them 2.No

4. Do you know that HERO HONDA is going to launch New product MOTOR CYCLE? 1. Yes 2.No

5. How much importance you give to the mind set of your family regarding bike buying? A. Extremely important C. Some what important B. Very important D. Not very important

6. List the features in a row that you will prefer first while purchasing a new model. 1. EXTERIOR STYLING 2. PRICE 3. BRAND NAME 4. SAFETY 5. COLOUR 6. TECHONOLOGY 7. MILAGE 8. ENGINE CAPACITY 9. WARANT

7. Do you use your bike for family business or just a ride? 1. Family 2.Just for fun

8. Are you satisfied with the service performance of Hero Honda, how would you rate? 1. Average 3. Excellent 2.Better 4.Outstanding