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 PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an

essence taking a view of the whole business organization and its
ultimate objective concern for marketing must penetrate all areas of the
enterprise. Market survey in today’s competitive world is a must for
every organization.

This project is a study of market potential of Hero Honda. The rational

behind this particular study is to find out the present market scenario of
various brands & to find out the corporate need and perception. It was a
pleasurable experience to conduct a research on behalf of Hero Honda
pertaining to the study of the Automobile Sector.

To carry out this research a sample study was pursued where the target
was made to the people of Delhi region. Various statistical and analytical
tools and techniques are applied to ascertain and depict the present
scenario.

Conclusion and there by recommendation has been arrived at by proper

and justified interpretation of the result derived from the above said
analytical tools and techniques.
 ACKNOWLEDGEMENT

I would also like to express the same gratitude towards Mr.

Narinder Tawar (Faculty of management) who gives good
support to me the very basics of project, and suggestion.

My thanks to all the financial advisors of Hero Honda

especially Mr. Ashish Kapoor (Regional Mkt. Manager)
who helped me get over my hard times during my sales job, I
can never forget his support and encouragement.

I also thank to BSAITM, Faridabad who give me opportunity

to work with Hero Honda. It increases my knowledge about
markets in which future will be struggle.

Last but not the least I would like to thank GOD & MY FATHER
& MOTHER, for helping me in every aspect and in every part of
my summer training.

Dinesh Singh Rawat

 IN PURSUIT OF EXCELLENCE

“We, at Hero Honda, are continuously striving for synergy between

technology, systems, and human resources to provide products and
services that meet the quality, performance, and price aspirations of our
customers. While doing so, we maintain the highest standards of ethics
and societal responsibilities, constantly innovate products and process, and
develop teams that keep the momentum going to take the company to
excellence in the new millennium”.
1.1 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

• The Automobile sector is one of the fastest growing manufacturing

sectors in India.
• In the 90s the industry witnessed an average growth rate of above
20 percent.
• Indian Automobile Industry is characterized by a very high
percentage (75 per cent) of two wheeler production, ranking second
only to Taiwan.
• The world leaders in the sector are evincing keen interest in
establishing manufacturing facilities for manufacturing and
assembling components.
• A politically stable and vibrant State, Andhra Pradesh is centrally
located with the support of seaports, international airports, assured
and reliable power supply, abundant water, broad base of auto
component manufacturers, highly trained, skilled and disciplined
manpower and is therefore, the preferred location for Automobile
industries.
• The interest of the state has been duly noted by Global Auto
Majors, who have indicated their interest to consider Andhra
pradesh for establishing manufacturing facility.
• The Government of Andhra Pradesh invites leaders in the industry
to set up manufacturing facilities to manufacture vehicles or vehicle
components in the State. The ideal places to locate companies in the
Auto Sector are the Hyderabad-Zaheerabad, Visakhapatnam-
 Kakinada, Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur
corridors.
• The Government is also formulating an Auto Policy, which would
give a proper direction to the growth of the sector.
• There are more than 20 auto –component manufacturing companies
in the State, manufacturing components such as grey-iron castings,
precision aluminium castings, leaf springs,oils and lubricants, diesel
fuel injection equipment, electronics and auto electronics and auto
electrical, front axles, gears, forging, machined components, pressed
metal components, pistons, cylinder liners, nozzles, delivery valves,
starter motors, alternators, electronic regulators, high pressure die
castings, clutch covers, fuel filters ,etc.
• Most of these components are presently being supplied to Hero
Honda, TVS Suzuki, Escorts Yahama, Bajaj and others. Amaron
Batteries are manufactured in Chittoor district. Around 119
components manufacturers have been certified for ISO 9000 quality
standards and seven companies achieved the QS 9000 quality
standard set by government and motors association.
1.2 ABOUT THE COMPANY

Hero Honda has a reputation of being the most fuel-efficient and the largest
selling Indian motorcycle. Its commitment of providing the customer with
excellence is self-evident. A rich background of producing high value products
at a reasonable price led the world's largest manufacturer of motorcycles to
collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and
the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A
relationship so harmonious that Hero Honda has managed to achieve
indigenisation of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish itself
as an intelligent purchase. Its unique features like fuel conservation, safety
riding courses and mobile workshops helped the group reach in the interiors of
the country.

Finance services helped facilitate purchase, as did an efficient dealer network

across the country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its
attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the
National Productivity Council's Award ( 1990-91), and the Economic Times -
Harvard Business School Association of India Award, against 200 contenders.
Its main Models are

• Hero Honda
o cbz
o splendor
o cd100
o cd100ss
o street smart
o passion
o Karizma
o CD dawn
o Ambition 135
1.4 VISION OF THE COMPANY

The Legend of Hero Honda

What started out as a Joint Venture between Hero Group, the world’s largest
bicycle manufacturers and the Honda Motor Company of Japan, has today
become the World’s single largest two wheeler Company. Coming into
existence on January 19, 1984, Hero Motors Limited gave India nothing less
than a revolution on two-wheels, made even more famous by the ‘Fill it – Shut
it – Forget it ‘ campaign. Driven by the trust of over 5 million customers, the
Hero Honda product range today commands a market share of 48% making it a
veritable giant in the industry. Add to that technological excellence, an
expensive dealer network, and reliable after sales service, and you have one of
the most customer-friendly companies.

This is proved by the company’s sales over the years:

1985.86 43,000 units

1989.90 96,200 units
1998.99 5,30,600 units
1999-00 7,61,210 units
2000-01 10,29,555 units
2001.2 14,25,195 units
2002.3 17,78.392 units
Customer satisfaction, a high quality product, the strength of Honda technology
and the Hero group’s dynamism have developed HTML scale new frontiers and
exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing
Director, “We will continue to make every effort required for the development
of the motorcycle industry, through new product development, technological
innovation, investment in equipment and facilities and through efficient
management”.
1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984
 Company incorporated.
 Technical collaboration signed.
 Foundation stone lay.
 1983 - shareholders agreements signed.

1985
 First motorcycle (Model CD 100) produced.

1987
 Engine plant started.
 1,00,000th Motorcycle produced.

1989
 Sleek model introduced.

1991
 5,00,000th motorcycle produced.
 CD-SS model introduced.
 Economic times – Harward business school award for
excellent Governance to Hero Honda Motors Ltd.
1993
 Hero group sponsors Hero cup five nations cricket tournament

1994
 Splendor model introduced.

1995
 National Award for outstanding contribution to the
development of Indian small scale industry (NSIC Award presented
by President of India)
 The analyst award 1995 presented to Hero Honda Motors Ltd.
on being ranked 9th amongst the most investor rewarding companies
in India.

1996
 1000 motorcycle per day production started.

1997
 15,00,000th motorcycle produced.
 Street model introduced.
 Hero sponsored 6th women world cup cricket tournament.

1998
  20,00,000th motorcycle produced.
 1st Hero Honda Master golf championship held at Delhi.

1999
 30,00,000th motorcycle produced.
 CBZ model introduced.
 7th World Cup Cricket tournament sponsored at England.
 Most admired business Baron CEO award conferred upon
the Chairman Brij Mohan Lal Munjal.
2001
 Passion and Joy motorcycle launched.
 One million motorcycles produced in one single year.
 50,00,000th bike produced.
 Winner of the review-2000-Asia’s leading companies’
award 2000.
 National productivity award for the best performance in
automobile and tractors.
 Sir Jahangir Ghandy medal for industrial peace awarded to
Brij Mohal Lal by XLRI Jamshedpur.

2002
 Declared “company of the year” by economic times business
award.
  Chairman Brij Mohan Lal awarded the “entrepreneur of the
year” award by Business standard.
 Ambition launched.

2003
 Declared “company of the year” by economic times business
award for the second time.
 Karizma the sports segment bike launched.
This all says about the golden past of the company and the company is
going on to the path of success.
1.6 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market share

HERO HONDA Motorbikes 75% market share

BAJAJ AUTO Scooter+Motorbikes+ Scooterate 25% market share
LML Scooter+Motorbike+Scootrate 30% market share
TVS Motorbikes+Scootrate 15% market share
YAMAHA Motorbikes 15% market share
ENFIELD Motorbikes 10% market share

According to the recent results company (Hero Honda) registered a sales

increased by 24.5% over the past years. Same month TVS also registered
increase of 45% while the other companies are not enjoying quiet good
increase in sales. While the whole industry registered an increase of about
17% only. So in present scenario the Hero Honda comes as the leader of
whole automobile segment while there is immense competition in industry
to get the highest market share.
BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly,
Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as
its brand ambassadors joining the add campaign together to promote
“Ambition”. All of these celebrities are the member of Indian cricket
team and very much popular in younger generation. In the last year with
the launch of its new premium bike Karizama Hero Honda signed its new
brand ambassador who is a cine star and is also very popular. He is Hritik
Roshan.

Service Your Bike

Hero Honda has always taken a lead in terms of defining service standards
in two wheeler industry with an aim to provide "Total Customer
Satisfaction" for their valuable customers across the country and also
internationally. We are constantly endeavoring to improve the quality of
our service facilities at our Dealerships. The first and foremost step to
achieve this was creating Automated Workshops at our Authorized
Dealerships and Service Centers across the country.
Automated Workshops

Hero Honda has the largest chain of Automated Workshops providing

service to their valuable customers by using latest service technology.
Automated Workshops have standard layout, hydro electric motor cycle
lifts, dust free engine rooms and use pneumatic tools and equipment to
ensure quality repair in customers motorcycle. The workshop environment
and usage of pneumatic tools increases mechanics efficiency and their
motivation to provide quality service. The layouts have been standardized
to ensure that there is a transparency of service. The customers can view
their motorcycle repair while sitting comfortably watching TV or relaxing
in the customer lounge. Workshop Automation has become a mandatory
service standard for all Hero Honda Dealers and Service Centers.
 Training

The regular Technical Training Programmes for Dealers Workshop staff

to keep them updated and refreshed about the latest price technology,
product technical details as well as service and repair procedures to handle
customers motorcycle with utmost care as well as to provide them the
service quality of highest order is a focus area at Hero Honda. Hero Honda
has six (06) training centers across the country. There are 05 zonal training
centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take care of
technical training requirements of dealers in each zone as well as local
technicians. There is a National Training Center at Dharuhera to take care
of all advanced level technical programmes for our dealers staff and our in
house service engineers. Hero Honda keeps an organizing Dealers
Mechanics Contest at Zonal Level and National Level to develop
competitive spirit among mechanics as well as in the process to update
their skills and product knowledge.

Customer Service

Hero Honda keeps on taking always-new initiatives to maintain its

leadership on service as well as enhance customer satisfaction level on an
ongoing basis. Some of the new initiatives related to customer service are
as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers
· Pre Paid Reply Cards
· Automated Mobile Service Workshops
· Mega Millennium Camps
· On the Job Training Programmes
· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our
dealers to keep our customers always in our mind on top priority.

Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero Honda is also launching very soon a novel concept and a very major
initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of Hero

Honda's motorcycle delivery process at the showroom. Customers shall be
educated on Safe Riding techniques through various audio visual aids.
Safety Instructors shall be imparting riding skills as well as education to
the customers. Dealers shall also conduct a major programme in their
respective towns with the association of local traffic police on a regular
basis on safety education and correct riding techniques.
2.1 OBJECTIVE OF THE STUDY
The study was done primarily with the following objective in mind.
 To study the brands of Hero Honda & consumers perception
Aabout the product of hero honda.
 To know why people buy Hero Honda and why some people
prefer other company.
 To study the features of different brands that give a good idea of
various products and services offered by the company.
 To understand the competitive environment in which the
company is operating and is desired to meet customer need and
satisfaction.
 To provide useful information to the company about the product
features of various competing companies.

2.2 METHODOLOGY

The methodology used in conducting the research work on HERO HONDA

with major emphasis on its sales and marketing strategies involve the following
steps:

Why I have selected HERO HONDA only?

I have selected Hero Honda for my summer training because it is the company
that is growing day by day. It has maximum market share with
comparison to its competitors. And it is the company that gives
highest sales and it is also the highest two-wheeler manufacturer.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process. Proper
defining of the problem is a must for proceeding further with the research
process. The type of study to be carried out, the questions to be raised, the
sampling procedure to be followed, and the data to be collected, all depends on
a correct understanding of the problem. Also, by clearly focusing on the real
problem, the research job can be simplified and completed with the minimum
cost, effort and data.

Identified problem or the objectives of the research discussed in the report are:
1. Developing the research plan:

In this a plan was developed about how to collect the require information
i.e. whom to contact for gathering the relevant data. Data is the foundation
of all research. It is the raw material with which a researcher functions.

Therefore, it requires great care to select the sources of data. Data, or

facts, may be obtained from several sources. Data sources can either be
primary or secondary.
A. Secondary data:

The sources from which secondary data was collected:

• Press releases of the company.
• Newsletters and In-house journals.
• Brochures and detailed descriptive leaflets
• Magazines like Business World, Outlook, Auto India, etc.
• Websites such as www.herohonda.com, www.google.com. These
were the sources from which secondary data has been gathered.
Most of the information presented in this report was extracted from
the above data sources.
B. Primary data:
Collection of primary data was conducted by visiting the people
personally for the preparation of the report.
2. Research approach:
It means the way by which the information was collected. Visiting the
various places of Delhi, getting the questionnaire filled by different
individuals.
Beside this, frequent visit to the showrooms of the company was of
great help to conduct the analysis and research work.
3. Contact methods:
Instrument or Data collected Forms: It is the method by which data is
gathered. It could be done through various instruments like
questionnaires, observations, getting information from the staff
members of the agency, contacting to the motor mechanics was
sufficient enough to conduct the study.

4. Collection of information :
The primary information was collected by face-to-face and direct
interviews with the peoples and the customers. They provide the
relevant information regarding the profile of the company as compared
to the other company in the Indian market. Most employees suggested
visiting company’s web site, as it was not possible for them to spare
time from their busy schedules.
 The secondary sources of information were various web sites of the
companies, newspapers & magazines such as The times of India, The
Hindustan Times, Business world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of
the information has been done on the basis of various sales and
marketing strategies adopted by the company during its tenure.

6. Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and
analysis of data, it was recorded in the form as prescribed. The major
part of the report is the findings. The finding also includes charts, tables
and diagrams etc. The report also mentioned the limitations of the
project undertaken. Then conclusion has been drawn out of the findings
and various recommendations have been given at the end of the report.
Certain tables on the basis of which the findings were made have been
included in the appendices section followed by the bibliography.
2.3 SCOPE OF THE STUDY

Hero Honda is spreading its wings and widening its business horizon
to reach and serve customers at new centers in the year ahead. The
company services are backed by a highly motivated and technology
driven team to achieve customers need, product expertise and
geographic reach.

The study is oriented towards the concept of different brands offered

by Hero Honda and its competitors to its customers. The company has
endeavored to move fast in providing market solution, which
maximize customer needs and convenience, using multiple delivery
channels in composing the agency network, service centers, lower
service cost and increased efficiency.
2.4 LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company
to assess how far the customers are satisfied with product and services of Hero
Honda. During the course of the study the following limitations were observed:

 The method will be unsuitable if the number of persons to be surveyed is

very less as it will be difficult to draw logical conclusions regarding the
satisfaction level of customers.

 Interpretation of data may vary from individual depending on the

individual understanding the product features and services of the
company.

 The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

 It is very difficult to check the accuracy of the information provided.

 Since all the products and services are not widely used by all the
customers it is difficult to draw realistic conclusions based on the survey.
 CBZ

The Hero Honda CBZ (pronounced

CeeBeeZee) is the latest offering from Hero
Honda for the Indian market. With a 156cc engine, the company claims that the
bike has a top speed of 100kph within 5.6 seconds. Though the bike has the
largest displacement engine, its top speed doesn’t match up to many of its
competitors. In all other respects, it is a bit too early to decide whether the CBZ
will sell in the same numbers as the Splendor. Though the initial market
response has been good, only time will be the final arbiter.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"
 Splendor
A combination of style and economy makes the Splendor
is a bike worth investing in. The latest from the Hero
Honda factory offers both performance and looks. It has
good looks, excellent handling characteristics and a smooth drive over any type
of terrain, thanks to the changes in the suspension at front and near as well as
the new frame design. All these features contribute to the Splendor being one of
the best selling four stroke-two-wheelers in India. It also meets all the current
pollution standards. A healthier beat, springy ride and overall low maintenance
has aided in the record-breaking sales of this bike.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.2b hp@8500 rpm
Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"
 St
re
et
10
0
The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through
category. The Hero Honda Street 100 is equipped with unique features like city-
clutch, which is designed specially for city driving. It has rotary gears, which
allow the rider to flip directly from the fourth gear to neutral once the bike has
come to a halt, a must for the present ‘stop-and-go’ traffic. A self-starter button
comes as an option. The Street can be purchased with a variety of seat layouts
and has options like a water pump, spray can, larger luggage tray, etc. Its major
competitor is the much cheaper K4 from Kinetic. Major plus points that justify
the higher price are the centrifugal clutch and the rotary gears. However, the
liberal use of plastics negates much of the ‘feel good’ factor and has hindered
sales to a large extent.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : N/A
Max Power : N/A
Wheel base : 1,205mm
Ground Clearance : 133mm
Ignition : Electronic
Dry Weight : 101kg
Fuel tank Capacity : 11litres
Battery : 12V
F/R suspension : Telescopic
R/R suspension : Swing arm and Hydraulic dampers
Max Speed : N/A
Front Tyre size : 2.25x17"
Rear Tyre size : 2.50x17"
 CD100S
S
The CD100SS is designed for those who live life in the
fast lane, rough and tough, for those who would love to take a bike on the
stumbling village roads. It shares almost all components with the CD100,
except for the additional reinforcement. With larger, reinforced shock
absorbers, wider tyres, heavier body weight and engine guard, the Hero Honda
CD 100 SS weights slightly more, resulting in some cut down in the fuel
economy it offers. Minor problems of the CD100 have been rectified in the SS
model. If you wish to ride into the hinterland, this is the bike for you.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.0bhp@8000rpm
Wheel base : 1,220mm
Ground Clearance : 165mm
Ignition : Electronic
Dry Weight : 103kg
Fuel tank Capacity : 10.1litres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 85kph
Front Tyre size : 2.57x18"
Rear Tyre size : 3.00x18"
Features :

Engine 4-stroke, single cyclinder, air-cooled

Displacement 97.2cc
Clutch type Manual
Clutch Primary -
Clutch Secondary Multi-plate wet
Transmission 4-speed constant mesh
Final Drive Roller chain
Ignition Electronic
Starting Kick starter
Frame T-Bone type
Suspension (Front) Telescopic hydraulic fork
Suspension (Rear) Swing-arm with hydraulic dampers
Dimensions (LxWxH) 1885x770x1060mm
Wheel Base 1210mm
Ground Clearance 135 mm
Dry Weight 95 kg
Tyres:Front/Rear 2.50"x18"/2.75"x18"
Max.Power 7.0 PS @ 8000 rpm
Max.Speed 85 Kmph
Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)
 A
m
bi
ti
o
n
13
5

Features :

Engine 4 stroke
Displacement 133 cc
Maximum Power 11 BHP / 11.15 PS @ 8000 rpm
Maximum Speed 100 KMPH
Gears 5
Frame Tubular single cradle, diamond type
Tyres: (Front) 2.75 X 18
Tyres: (Rear) 3.00 X 18
Headlight Trapezoidal 35 / 35 W
Fuel Efficiency 55 KMPL

CD DAWN

Features :

Engine 4-stroke, air-cooled, single cylinder OHC

Displacement 97.2cc
Clutch Multiplate wet
Gear box 4 speed constant mesh
Frame Tubular double cradle
Battery 12V - 2.5 Ah
Head lamp 35W / 35W - Halogen bulb
Suspension(front) Telescopic hydraulic shock absorber
Suspension(rear) Swing arm with hydraulic shock absorber
Wheelbase 1230 mm
Dimensions (LxWxH) 1980x720x1045 mm
Ground clearance 150 mm
Kerb weight 108 kgs
Tyre (front) 2.75 x 18-4 PR
Tyre (rear) 2.75 x 18-6 PR
Max power 7.4 PS @ 8000 rpm
Max torque 0.79 Kg-m @ 5000 rpm
Bore x Stroke 50.0 x 49.5 mm
Compression ratio 8.8: 1
Starting Kick start

KARIZAMA

If you look at the 223c mill of the Karizma, you can

make out the familiar streak that runs through the engines on the CBZ and the
Ambition. No prizes on this count as to the reason but the 223cc Karizma
engine represents - for the moment - the maximum capacity this modular
design theme can be taken to. The crankcase is of virtually the same size
though the covers do have some detail differences and the engine mounts are
the same as in the other two bikes and completing the picture are the scaled-up
barrel (with an additional fin) and head.

The single overhead cam motor features slightly undersquare cylinder

dimensions with a 65.5mm bore and a 66.2mm stroke to give a 223cc swept
volume. Hero Honda has designed in the latest convex-type combustion
chamber (compression ratio being 9.0 : 1) for silent running and good power
delivery while also giving it the latest Keihin VE 3EA constant vacuum type
carburettor which also packs in the CCVI switch. The CCVI term stands for
carb-controlled variable ignition timing which as it suggests actuates - via
throttle position - one of two ignition maps, for low and high speed operation.
This was one area which disappointed appreciably in the CBZ wherein the
engine sounded and felt harsh as one went past the middle range but here this
detail has eliminated such a glitch completely. Just for the record, the 223cc
engine gets the latest version of Honda's AMI (advanced microprocessor
ignition) system which incorporates a three tier, multi-stage digital ignition
system.

The all aluminium alloy engine (with pressed-in steel liner) features an
automatic cam chain tensioner, an air cut off valve (to prevent afterburning in
the exhaust muffler) and like on the CBZ and Ambition, an air injection valve
to keep tail pipe emissions in check. With all this and the extra cubic capacity,
the Karizma engine develops 16.76bhp at 7000rpm and 18.35Nm of torque at
6000rpm. This is about 2bhp and 5Nm more than what the Pulsar 180 makes
but the reasoning is that the engine had to be stressfree and this fact holds true
when out on the roads.

Transmission is via a five-speed gearbox which has had its final drive ratios
revised from those in the CBZ. A stronger multi-plate clutch is used to take
care of the enhanced power and torque figures. This time round Hero Honda
has not faulted and equipped the engine withan electric starter even though the
kick starter to be actuated requires the front right footrest to be folded out of
the way.

ENGINE:
TRANSMISSION:
 PASSION PLUS
Features :

4.1 FACTS & FIGURES

Sale of Hero Honda in Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale
of Hero Honda is less but in urban area it gives very exiting result. This may be
because of the conditions of roads there.

Area % of Respondents
Urban Area 72
Rural Area 28

28%

72%

Urban Area Rural Area

PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken from the
mentioned areas for the survey. It was observed that the people of main town
like to use Hero Honda as they like all features of it. And is according to there
pocket

Areas % of respondents
Preet Vihar 42
Laxminagar 12
Cannaught Place 26
Shakarpur 14
Other 6

6%
14%
42%

26%

12%

Motijheel Maripur Chatta Chock Mithanpura Other

 FAMILY INCOME OF RESPONDENTS

The income distribution of the families of respondents shows that the bike,
which was considered earlier to be out of range for middle class families is now
becoming very fast an article for them.

Family income (Rs.) % of Responses

5000-10000 10
10000-15000 46
15000-20000 36
Above 20000 08

8%
10%

36%
46%

5000-10000 10000-15000 15000-20000 Above 20000

 PERSONS WHO KNOW TODRIVE BIKE

Almost every person know how to drive a Bike (In my Survey)

Response % Of respondents
Driving known 96
Driving not know 04

4%

96%
Driving known Driving not know
FACTOR PROMPT TO BUY HERO HONDA

It should be stated that the performance is the most important factor followed by look. The
possible combination and corresponding number of respondents are shown in the table
below.

Features % of respondents
Performance 18
Look 11
Availability 5
Price 1
Maintenance 4
Brand image 5
After sale service 6

10% 12% 36%

8%

2% 10% 22%
Performance Look Availability
Price Maintenance Brand image
After sale service
HOW DID THE RESPONDENT CAME TO KNOW ABOUT
THE BIKE?
The best media of advertisement (according to which the respondents came to know about
the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of
them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46
Magazine 36
Friends 14
Hoardings 02
Others 02

2%
14% 2%

46%

36%

Television
Magazine
Friends
Hordings
Others
PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of
the respondents say that they have purchased their bike through bank loans.

Purchase Type % of Respondents

Cash Purchase 94
Hire Purchase 06

6%

94%

Cash Purchase Hire Purchase

DECISION INFLUENCED BY

Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their
friends and parents influenced them.

Influencer % of Respondents
Parents 16
Self 54
Friends 18
Relatives 08
Others 04

4%
8%
16%

18%

54%
BIKES PREVIOUSLY USED

More than 60% were using Hero Honda CD100 bikes. They were followed by Yamaha
RX100 & very little have chosen other bikes.

Previously Used % of Respondents

CD100 62
Yamaha RX100 32
Others 06

6%
32%

62%
RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing a stiff
competition from Pulsar & Fierro.

Bikes % rating by Respondents

Splendor 38
Passion 08
Ambition 06
Pulsar 28
Fierro 14
Others 06

6%
14%
38%

28%
8%
6%

Splendor Passion Ambition Pulsar Fierro Others

4.2 SURVEY REPORT

The Initial Quality Study of Two Wheelers in India

Something to Ponder over.

Which model of Motor Cycle would you recommend to your dear

friend?

Does the basic reliability of two-wheelers measure up to the promises

made by the manufacturer…?

Where exactly is the quality lacking…?

Are buyers happy with the quality they get…?

What is the trend over the years…?

Would they buy the same model again or more importantly from the
manufacturers point of view… would they advise their friends to buy
it…?

So let the people know just how the two-wheelers fared on the road…
WORKS :

It quantifies the initial quality of two wheelers in the form of the

universally accepted metric – Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performance

Links the quality findings with the customer viewpoint
Prelude :

Each year manufacturers of two wheelers sells millions of vehicles in

India with an implicit promise…… that their products will have zero
defects.

However, do their Products match up to their promises?

And how can we find out how they perform on the road?

PPM is an initial quality index for two wheelers. It is an index that

represents the level of quality in manufacturing and delivery
operations for a given model of two-wheeler.

PPM counts the number of problems faced by the user of a given

model of two-wheeler within the first three months of its usage. The
addition of such problems for 100 carefully chosen vehicles indicates
a number called ‘problems per 100 vehicles’ or PP100V. e.g. if a
particular model has initial quality index of ‘216 problems per 100
vehicles’ it means on an average each vehicle will have 2.16
problems.

The exercise started on 5th July, 2004. The fieldwork was completed
on 5th August, 2004.
Field investigators have spent more than 10,000 hours on the road,
carefully tracking down new owners of 14 popular bikes, to find out
what problems they have encountered in the first three months of
usage.

Responses were collected from about 100 people living in town for
each of the 24 models totaling to more than 2400 responses from
areas.
Aided recall technique was used through a structured questionnaire
based interview to collect the data from the field. Only full-time field
investigators of METRIC were employed for data collection to
maintain reliability of responses.
Findings :

The Indian two wheeler industry today offers more than 70 models to
a buyer. And manufacturers are launching new models every day……
More than 20 models were launched in the last year.

Top this up with a variety of promises ranging from free gifts and
financial schemes to the attractive looking models and jingles in the
advertisement.

In this whirlwind of speed and confusion maze, choosing the right

pair of wheels can be a trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a
given category of two wheeler. A lady doctor may decide to look only
at gearless scooters while a collegian with a rich father may only look
at premium bikes.

What next……? Which bike should I buy? A bike with more

power…… better looks…… more reliability…… errrr!

Lesser problems per vehicle for a given model could be a good

enough reason to go for the model…..? Yes! But, within my selected
category of premium bikes… So which premium bike has lesser
problems?

Do new launches have more problems than older ones? Naa…! Does
PPM score depend on who manufactured the vehicle…? See for
yourself!

Manufacturer-wise PP100V scores in Survey

Sr.No. Vehicle PP100V

1 Honda 146
2 LML 165
3 Hero Honda 176
4 Kinetic 183
5 TVS 196
6 Bajaj 196
7 Yamaha 223

Executive bikes scored less problems than economy bikes…however

simpler machines like scooters have the fewest problems

This year we classified motorcycles by the market as premium,

executive and economy…...
Amongst the bikes, we found the number of problems were lowest in
executive bikes and highest in economy bikes….

Executive bikes (179 PP100V), then premium bikes (209 PP100V)

and last were economy bike (230 PP100V).

Maximum Problems found in engine and transmissions:

46% of the problems reported by customers were problems like high

fuel consumption, starting trouble, erratic / rough gear shifting,
noisy / loose drive chain etc. All these problems are related to the
engine & transmission. Another 12% of the problems were attributed
to miscellaneous aspects like battery discharged, stand hard to
operate, etc.
Perhaps this is the most complex part of the two wheelers and hence
poses maximum challenge to the quality control guys in the
manufacturing units.
ENGINE Trouble..
Splendour the largest selling executive bike from Hero Honda has reported the
lowest number of problems with ENGINE (37 PP100V) closely followed by the
newly launched geared scooter Eterno (38 PP100V) from Honda.

Simplicity is the beauty

TRANSMISSION WOES :
Gearless scooters/scooterettes have lowest number of TRANSMISSION
problems., complains Who fulfilled the promised performance and how
much…?
Sl No. Manufacturer % models above category average
1 Honda 100
2 LML 100
3 Hero Honda 67
4 Bajaj Auto 43
5 TVS 33
6 Yamaha 33
7 Kinetic 25
SCOPE AND COVERAGE :
Manufacturers and their Models:

Sr.No. Manufacturer List of models studied

* Bajaj
1 Boxer
2 Caliber 115
3 Pulsar 150 / 180
4 Spirit

*Hero Honda
f
5 Ambition
6 CD-100 / SS / Dawn / CD Dawn
7 Splendor / Passion
*Kinetic Engineering

8 Boss

*LML
9 Freedom

*TVS

10 Max 100 R / DLX / DC

11 Victor

*Yamaha
12 Crux / Crux R
13 Enticer
14 Libero

Aggregates and features covered:

§ Overall Satisfaction
§ Overall quality
§ Instrument Panel / Dash Board
§ Locks
§ Control knobs / Switches
§ Handle
§ Lights
§ Body
§ Transmission
§ Engine
§ Wheels
§ Riding
5.1 RECOMMENDATION
It is clear from the report that the Hero Honda Motors is facing cutthroat
competition; hence the company’s manager has to be fast and smart so as to
understand the customers needs. They have to come up with various new
techniques or schemes to be able to cater to different categories of people.

Customers are becoming more wise day by day and they are now willing to
know all the in and out of the things happening around them. This has led to
increased customer awareness.

We can analyze that if the brand is reputed that doesn’t win the customers
delight unless it’s provided same value-added features or else we can say
competitive advantage.

• For gaining a competitive advantage it has to continuously compare the

product and services with the competitors and find the weak area of the
rivals for gaining competitive advantage.

• Surveys revealed that awareness of Hero Honda Motors is low among its
target segment for creativity awareness. The company has to take some
keen step for promotional activity.

• The company should regularly send the sales person who have good
communication skill to the customers so that they should be aware about
the product and services in market and know the quality of the services
offered by the company.
While Hero Honda has strong foothold in the industry, the company
should look into the areas of weakness.
In this connection, It is suggested that the company can look into the
following areas:

• In order to expand its business it should introduce innovative

schemes for young generations, better financial schemes, etc.

• The company should expand its service centers.

• The must move towards the rural areas to expand its sale.
 QUESTIONNAIRE FOR THE SURVEY OF MOTORBIKES.

1. Name __________________________________________________

2. Address _____________________________________________
_____________________________________________

3. Phone No. ___________________

Mobile No. ___________________

4. Age 18 – 22 years [ ] 23 – 27 years [ ]

28 – 32 years [ ] above 32 years[ ]

5. Do you have any bike in your house?

Yes [ ] No [ ]

6. If yes, Name and Company of the bike.

________________________________________________________.

7. If No, Do you have any plan to buy it in next 6 months?

Yes [ ] No [ ]

8. If Yes, Name and Company of the Bike.

________________________________________________________.

9. Which Bike does you like most?

________________________________________________________.

10.Rank the Motorbike manufacturing company.

1. Hero Honda [ ]
2. Yamaha [ ]
3. Bajaj [ ]
4. L.M.L. [ ]

11. Do you remember any advertisement of Hero Honda?

________________________________________________________.
 12. What should the price range in your opinion?

Splendor + ___________________ Sufficient [ ]

CD dawn ___________________ Sufficient [ ]
Passion + ___________________ Sufficient [ ]
CBZ ___________________ Sufficient [ ]
Karizma ___________________ Sufficient [ ]

13. Any new facilities or any improvement that you want.

________________________________________________________
____________________________________________________________________
____________________________________________.

14.Give remark to your old Bike Company.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

15 Give remark to Hero Honda.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

Thanks

Surveyed by: ………………………

Checked by: ………………………
 BIBLIOGRAPHY

BOOKS:

 Name of the book :- Marketing research

Author :- Dr. C.B.Mamoria

 Name of the book :- Marketing research

Author :- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

 Journals published by Hero Honda, Annual Report

 Auto India, Business World

INTERNET:

 www.herohonda.com
 www.google.com