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PROJECT SYNOPSIS
ON
CUSTOMER SATISFACTION
OF
HERO MOTOCORP LTD.
COMPANY PROFILE :

Hero MotoCorp Limited is the World's single largest two-wheeler motorcycle company. The
company is engaged in the manufacture of two wheelers motorcycles and its parts. The company
has three manufacturing facilities namely Dharuhera, Gurgaon at Haryana and Haridwar at
Uttarakhand. The company is based in New Delhi, India. The company offers a range of bikes
starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion and Passion
Pro.

The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour F1. It also has
an offering called Achiever in 135 cubic centimeter segment. In the 150 cubic centimeter and
above the company offers brands like Hunk, CBZ X-treme, Karizma and the Karizma ZMR. It
also offers a 100 cubic centimeter scooter, Pleasure. Hero MotoCorp Limited was incorporated
in the year 1984 with the name Hero Honda Motors Ltd.

The company was established as a joint venture company between Honda Motor Company of
Japan and Hero Group. In the year 1983, they signed a joint collaboration agreement and formed
the company. The joint venture between India's Hero Group and Honda Motor Company, Japan
has not only created the world's single largest two wheeler company but also one of the most
successful joint ventures worldwide. In the year 1985, the company commenced their
commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD
100 in the market.

Hero Moto Corp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter
manufacturer based in New Delhi, India. The company is the largest two wheeler manufacturer
in the world .In India, it has a market share of about 46% share in 2-wheeler category. The 2006
Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108. On 31
March 2013, the market capitalisation of the company was INR 308 billion (USD 5.66 billion).

Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan.
In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares
held by Honda. Subsequently, in August 2011 the company was renamed Hero Moto Corp with
a new corporate identity.
In June 2012, Hero Moto Corp approved a proposal to merge the investment arm of its parent
Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split
from Honda Motors.

Company Performance
The company has sold over 47 million 2-wheelers since its inception in 1984 till Mar-2013. It
sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were motorcycles. Hero Moto
Corp sells more two wheelers than the second, third and fourth placed two-wheeler companies
put together. Its most popular bike Hero Honda Splendor sells more than one million units per
year.

In 2013, Hero MotoCorp registered best ever calendar year performance of more than 6.1 million
unit sales. By selling 6.25 million units in the month of October, it became the first-ever
manufacturer to cross landmark 6 lakh unit sales in a month. In the last quarter of the year or say
in the festive season, the company sold more than 1.6 million units, while in non festive time in
April–May 2013, it managed to sell out quite good numbers of units- 1.1 million.

Operations

Hero MotoCorp has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana
and at Haridwar in Uttarakhand. These plants together have a production capacity of 6.9 million
2-wheelers per year. Hero MotoCorp has a sales and service network with over 3,000 dealerships
and service points across India. It has a customer loyalty program since 2000, called the Hero
Honda Passport Program.

It is reported that Hero MotoCorp has five joint ventures or associate companies, Munjal
Showa, AG Industries, Sunbeam Auto, Rockman Industries and Satyam Auto
Components, that supply a majority of its components.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million
two-wheelers by 2016–17. This in conjunction with new countries where they can now market
their two-wheelers following the disengagement from Honda. Hero Moto Corp hopes to achieve
10 per cent of their revenues from international markets, and they expected to launch sales in
Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming
half decade, the company is coming up with their fourth factory in Neemrana in Rajasthan while
their fifth factory is planned to be set up at Halol in Gujarat.

INTRODUCTION TO THE TOPIC:

Customer Satisfaction
Definition of Customer Satisfaction
Kotler (1997) defines customer satisfaction as follows:
“ Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing a
Product’s perceived performance (or outcome) in relation to his or her expectations. ”

Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. It is seen as a key performance indicator within
business and is part of the four of a Balanced Scorecard.In a competitive marketplace where
businesses compete for customers, customer satisfaction is seen as a key differentiator and
increasingly has become a key element of business strategy.

It's a well known fact that no business can exist without customers. In the business of Website
design, it's important to work closely with your customers to make sure the site or system you
create for them is as close to their requirements as you can manage. Because it's critical that you
form a close working relationship with your client, customer service is of vital importance. What
follows are a selection of tips that will make your clients feel valued, wanted and loved.

They are: The basic elements of the product or service, basic support services, a recovery process
for counteracting bad experiences, and extraordinary service. There are many definitions of the
key elements of the services, but this one is considered appropriate in the context of care or after
sales services.

Satisfaction is a function of perceived performance and expectation. If the performance matches

the expectations the customer is satisfied. If the performance exceeds the expectation the
customer is highly satisfied and delighted. If the performance does not match the expectations
the customer is dissatisfied. Satisfaction is a person’s feelings of pleasure of disappointment
resulting for comparing a products perceived performance (out-come) in relation t his/her
expectation. The link between customer satisfaction and customer loyalty is proportional.
Suppose customer satisfaction is rated on a scale from 1 – 5. At a very low levels of customer
satisfaction.

Level-1, customers are likely to abandon.

Level-2 to 4, customers are fairly satisfied but still find tit easy to switch when a better offer
comes along.

Level-5, the customer is very likely to repurchase an even spread good word of mouth about the
company.
The key to generating high customer loyalty is to deliver high customer value. A company’s
value proposition is much more than it’s positioning on a single attribute. Most of the successful
companies are raising expectations and delivering performances to match. These companies are
aiming for TCS – Total Customer Satisfaction. Customer satisfaction is both a goal and a
marketing tool. Companies that achieve high customer satisfaction ratings make sure that their
target market is known.
After sales support management system is apart of ERP Enterprise Resource Planning solution
dealing with the support module after the sales of product. It creates an advanced environment to
the organization, which are in to technical support after sales e.g. Companies offering electronic
goods and motor vehicles etc.

Measuring customer satisfaction

Organizations need to retain existing customers while targeting non-customers;. Measuring

customer satisfaction provides an indication of how successful the organization is at providing
products and/or services to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation of the state of
satisfaction will vary from person to person and product/service to product/service. The state of
satisfaction depends on a number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also
vary depending on other factors the customer, such as other products against which the customer
can compare the organization's products.
OBJECTIVES OF STUDY

 To know the factors influencing on after sales service of the Company

 To know whether the dealer renders after sales service, how far the consumer is satisfied

with it.

 To know the customer perception towards the service.

 To study the dealer performance.

 To know whether the problem is resolving completely at service station.

 To study whether the vehicle is delivered on time at service station.

RESEARCH METHODOLOGY

Research is the plan structure & strategy for investigation conceived to answer to research
question & control variance. It is the overall operation pattern to framework of project that
stipulated the information to be collected from which sources by word procedure. What are the
two possible sources of data for securing in the above mentioned information in the primary &
secondary data.

Research design: The study will be undertaken to access the after sales service of Hero
MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.)

Research procedure: The questionnaire designed for the study will be structured & disguised in
nature. It will be consists of multiple choice & short questions.

Descriptive Studies:
In descriptive studies, when the researcher is interested in knowing the characteristics of certain
groups such as age. Sex, educational level occupation of income, a descriptive study is
necessary. Descriptive studies are well structured. It is therefore, necessary that the researcher
gives sufficient thought to framing research questions and deciding the types of data to he
collected and the procedure to be used for this purpose-The objective of such a study is to answer
the “who, what and how” of the subject under investigation.

DATA COLLECTION METHOD:

Data collection methods are of two types i.e.

1. Primary Data
2. Secondary Data.

Primary data Primary data are those, which are collected afresh and for the first time, and thus
happens to be original in character. Data that has been collected from first-hand-experience is
known as primary data. Primary data has not been published yet and is more reliable, authentic
and objective for example: emails, survey, calls etc

Secondary data These are those which have already been collected by someone else and which
have already been passed through the statistical process. For example: Published Printed
Sources, Published Electronic Sources, Unpublished Personal Records, Governement
Records, Public Sector Records.

Data Collection Tools used in this project:

 Questionnaire Survey

 Books

 Internet

Data sources used in this Project:

Information required for the project will be mainly primary data. The information will be
collected by survey method. With the help of questionnaire by meeting various bike owners at
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) Ludhiana.
Sample design: The sampling unit will be confined to end consumers of the product i.e. Hero
MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) owners to know there satisfaction level
regarding performance of bike performance of bike and service.

Sample universe: The survey will be done at HERO MOTO CORP, Ludhiana.

Sample frame/unit: Professionals, Business people, Employees etc, who are using Hero
MotoCorp Ltd

Sample size: The total sample size will be taken 200 .

Sample method: The information will be planned to be collected by sample method, the sample
method followed will be Random sampling method. The probability random sampling method
will be stratified random sampling.

Analytical Method: Simple percentage method will be used for the analysis purpose..
QUESTIONNAIRE

Name of Respondent: ___________________________________________________

Designation: ________________________ Income: ___________________________
Address: ______________________________________________________________
Phone No._________________ Email id: ___________________________________

1. What is the model of bikes used by customers?

a. SPLENDER +
b. PASSION +
c. GLAMOUR
d. CBZ X-TREME
e. KARIZMA
f. OTHERS
2. Which type of bike have you bought?
a) New
b) Pre OwneSd
2. Whether the price of the Vehicle is?
a) Affordable
b) Not Affordable
3. What is the purpose of buying this bike?
a) Personal use
b) Rental use
c) Other use
4. Who influenced in buying this bike?
a) Your self
b) Family
c) Friends
d) Advertisement
5. What does this bike convey?
a) Status
b) Necessity
c) Comfort
d) Other
 6. What are the reasons for buying this bike?
a) Price
b) Mileage
c) Service
d) Brand Image
7. You use your bike mostly for?
a) Office
b) Family
c) Long drives
d) Shopping
8. How long you will use this vehicle?
a) 1-2 years
b) 2-4 years
c) 4-8 years
d) 8 years & above
10. Rate your satisfaction for the service provided by the Organization?
e) Excellent
f) Good
g) O.K
h) Poor
11. Are you satisfied with milage give by your bike?
a. yes
b. no

12. Express your satisfaction level on performance of your Vehicle?

a. satisfied
b. O.K
c. Not satisfied
13. Comment on the prices charged at service station?
a. High
b. Medium
c. Reasonable
d. Low
14. How is the performance of the executives?
a. Excellent
b. Good
c. O.K
d. Poor
15. Would you like to change your bike?

1) Yes 2) No

16. YES, What is your rating factor for Bike which you will give

RATING
FACTOR GOOD FAIR BAD
Quality

Price

Longevity
Others (_)

17. If YES, how do you heard about Hero MotoCorp Ltd Products

a) Electronic media b) Print media

c) Sales person d) others ( )

18. What way you think promotion of Hero MotoCorp Ltd Products
Should be done

a) Offers b) Advertisement
c) Free Service d) others ( )

19. Is the appointment system useful to you?

1) Completely 2) Useful 3) Not useful

20. Do you get the information from service advisor on the services to be performed?

1) Completely 2) Adequately 3) Partially

21. Suggestions for the company?

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BIBLIOGRAPHY

Principles of Marketing : Philip Kotler & Gary Armstrong

Marketing Research : G.C.Beri

Consumer Behavior : Leon G. Shiftman

Services Marketing : Adlarian Palmer

Magazines : Auto India

: Business Today