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Culture Documents
CHAPTER 1 INTRODUCTION
Hero Honda has a reputation of being the most fuel-efficient & the largest selling Indian Motor Cycle. Its commitment of providing the customer with excellence is self-evident. A rich back-ground of producing high value products at a reasonable price led the worlds largest manufacturer of motor cycles to collaborate with the worlds bicycle manufactures.
Hero Honda has been the largest two wheeler company in the world from eight years .it is the first largest two wheeler company in india the company crossed ten million unit milestone over nineteen years span
Finance services helped facilities purchase, as did an efficient dealer network across the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd., turned its attention overseas, & exports have been steadily on the rise. Hero Honda company producing of two wheeler in india,in domestic market of two wheeler in india the hero Honda company shows its positive growth in every year during review . Hero Honda is recognised today has one of most successful joint venture in the world and also in india from two and half decades. It was the affinity in working cultures of Honda Motor Company of Japan & the Hero group that resulted in the setting up of Hero Honda Motor Ltd., A relationship so harmonious that Hero Honda has managed to achieve indignation of over 95% a Honda record worldwide. Tactical promotions & excellent marketing helped Hero Honda establish itself as an intelligent purchase. Its unique features like Fuel conversation, Safety riding courses & Mobile workshop helped the group reach in the interiors of the country.
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CHAPTER2
Research Design
Meaning of research: Research is depth study on particular topic or selected matter and knows the depth knowledge about the selected topic We can define research as a scientific and systematic search for pertinent information on a specific topic . According to learner dictionary of current english ,the meaning of a research as a carefull investigation or enquiry specially through search for new facts in any branch of knowledge . After knowing the meaning of the research the main aim of our research is to analyse the consumer behaviour towards Hero Honda bikes in shimogga TITLE OF THE STUDY
A study on consumer behaviour towards hero Honda bikes in shimoga city
aspirations to improve their standard of living & almost all want to possess twowheeler as their mode of transport. There is a high competition in the Market & Consumers are becoming more & more brilliant in evaluating the brands. In this scenario, it becomes important for every marketer to reach each segment
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effectively in order to retain potential customers. For this they have to give importance for various elements like Advertising Media, Distribution Promotion Quality etc
So without going for such studies, its difficult for any body to achieve success. This study has been taken to analyze the efforts taken by Hero Honda in order to enhance its Market Potential & to give suggestions on the same
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Scope of study extends to discover consumer reaction towards the product performance and physical characteristics, performance with respect to quality, price, advertising and Company Good will. As motorbike is used as a mean of transport this study will help the market to understand.
1.analysis of consumer satisfaction 2. to analyse the consumer behaviour 3.To determine the consumer behaviour 4.To analyse the product differentiation
Samplings:
In sampling method we taken the samples of 50 respondents in shimoga town
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motorbikes are used throughout the world, the police and the fire department use motorcycles to carry medical personnel to accident scenes. Before the 20yrs ago a motorcycle was carried for the noise, dirt and frequent breakdown which the use of its entailed. It was then truly a sportsmans machine and of little use in the commercial field.
Guilder Dajnler a German Engineer invented the first real motorcycle in 1885. he attached a four stoke piston engine to a wooden bicycle frame. For the next few year motorcycle remained larger experimental. During the early 1900s with
continual improvement they developed into useful vehicles. Today motorcycles have the same general appearance as easier models. But modern bike are earlier to handle and they have storage frames, more power engine are more efficient.
Solo machines were available with engine varying in size from 147cc to 1000cc capacity with corresponding nominal rating of 0.5 hp to 18 hp. The smallest class
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which comprised machines such as the Francis Braneth, the Excelsior and other too numerous to mention is intended chiefly for use on short journey. And its maximum speed was 40 m.p.h. Motorbikes are of both two strokes type are Velocelle, Lenis, Enfield and many others with two-stroke engine.
During 1960s the Japanese Honda Company began to enter the customer markets with 50cc four stroke machines. This was followed by Suzukis producing two strokes, Motorcycles of today are having comfortable machine and the machines of today bikes are produced with the most advanced and sophisticated technology. Japanese have dominated the world market in two wheeler fields coming out with innumerable models.
The legend of Hero Honda was started out a joint venture between Hero Group, the worlds largest bicycle manufactures & the Honda Motor Company of Japan is today the manufacture of Indias largest selling motorcycles coming into existence on January 19th 1984. Hero Honda Motors ltd., gave India nothing less than a revolution on two wheelers made ever more famous by the Fill it Shut it Forget it company driven by the trust of over 30 lakhs customers. The Hero Honda product range today commands as much as 47% making it a veritable giant in the Industry. Add to the technological excellence, an expansive dealer network & reliable after Sales-Service & it is one of the customer friendly company. This is proved by the companys sales over the years;
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In fact, every second bike sold in India today is a Hero Honda, in the world Mr. Brijmohan-laal-munjal, the Chairman & Managing director, we will continues to make every effort required for the development, of the motor cycle industry, through new product development. Technological innovation, investment in equipment &
India is the second largest manufacture of two wheelers in the world. It stands next to Japan and China in terms of the number of two wheelers produced and domestic sales respectively. The motorcycle being produced in India before the advent of the new breed of 100cc vehicle was technologically more than two decades old. They adopted absolute technology and were outdated when compared to their other counterparts. The
technological gap was due to efficient research and development department and strict government policy on import of technology. So, people went in for scooter and mopeds for their requirement. Enfield, yezdi and Rajdoot were the only breed existed before these motorcycles were very few in number compared to other two wheelers on road. The Industry had a smooth ride in the 50s, 60s and 70s when the government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a peak volume of 1.9 mm vehicles because of advanced technology has given Indian consumer to choose from verity of models and bridge the gap that existed before few years back people had to wait for long period to get their two wheelers after selecting it. This kind of waiting dominated the two wheeler industry. Now, very thing has changed. A buyer who wises to buy a two-wheeler just has to enter the showroom and come out with two wheeler immediately. Now, it is a buyer market where the buyer can choose from various two-wheeler vehicles with several options.
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1983: For the first time Share Holder & agreement Signed. 1983: Company incorporated & also technical collaboration signed. 1986: Quality circle launched. 1987: Workers union formed, engine plant was also started. 1991: Hero Honda becomes one of Indias top 100 companies. 1991: CD 100SS Launched the Tough and Rugged takes on the roads. 1994: Hero Honda chairman declared businessman of the year, by Business India Magazine. 1994: DESIGNED TO EXCEL, the splendor takes center stage. 1997: State-of-the are Gurgaon plant inaugurated & the strut is Launched with city riding made easy. 1998: Hero Honda becomes the no. 1 Motorcycle brand. 1999: CBZ is launched; motorcycling unplugged becomes the bikers New mantra. 1999: Hero Honda receives ISO 14001 certification, for environment Conservation.
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2000: Launch of worldwide Honda safety riding program, as Ride safe in India. 2000: Splendor becomes the worlds no. 1 two wheeler brand. 2001: Hero Honda achieves om- the operation million-land mark,
Creating history by reaching the target of selling a million bikes In single year. 2001: The new millennium witnesses the launch of Passion Plus, when Style matters. 2002: The Company launched Ambition motorcycle targeting people Aspiring to move up in life. 2003: The Company launched CD-DAWN in the motorcycles basic Segment. Later it launched Indias first premium sports motor Cycle KARIZMA. 2004: The Company introduces STRING new 4-stroke bike. 2005: The Company launched Hunk, 4 strokes OHC, single Cylinder, air-cooled. The company has announced a licensing agreement with Austria-based Bombardier-Rot ax that will provide 125cc-175cc engines for the upcoming Hero Aprilia range pf scooters.
BUSINESS OVERVIEW
Motorcycle from the major chuck of the sales revenue of Hero Honda, a small proportion of the revenue comes from the sales of spares; the proportion of sales revenue coming from each of these two segments in the FYOO is depicted. The company uses both imported & indigenous raw materials & components to manufacture the motorcycles, as a result the increase or decrease in the import tariff as an impact on the companies bottom line, the proportion of imported & indigenous raw materials components & shares use in FYOO is as follows: Imported (as % of total) 7.90 Indigenous (as % of total) 82.1
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Raw materials & components 31.21 Spare 68.78. The two wheelers industries in India experiencing a shift from scooters to motorcycles, in the motor cycle segment the customer are shifting from two strokes to 4 strokes motor cycle, sighting fuel, efficiency as a major reason; this has made the ride smoother for Hero Honda. But this coupled with low cost of production, as attracted MNCs to enter India in a big way. This has been signaled by the arrival of Hero Honda Motors Japan, through its fully owned subsidiary in the budget 2001, the goal has provided a 8% cut in special excise duty, this has made motor cycle companys to reduce there prices, Hero Honda has reduced the price of its heading brands by an overage of Rs. 2,300/-. This price cut is expected to have a positive import the demand for two wheelers. The company is expected to face stiff-
competition form foreign players in the future & expected to clear by 2005. The trend in the two wheeler industry is denoted in the following table & we can clearly see a shift from s cooters to motor cycles.
% Market Share
FY 05 FY 06 FY 07 FY 08 FY 09
Scooters
46 %
44 %
41 %
39 %
33 %
Motor cycles
30 %
33 %
37 %
41 %
48 %
Mopeds
24 %
23 %
21 %
20 %
19 %
The company has been focusing on customer satisfaction as a key growth drives, the developed fuel efficient motor cycles at a time when every one was producing two stock motor cycles, this made they gain market share at a rapid place & helped them to become the market leaders in the motor cycle segment, having set its focal on customer satisfaction, the company is determined to provide products & services that meet the quality, performance & price aspiration value for their m
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Items
03/99
03/99
03/00
03/00
% Change
% Change
Items
Motor cycles
1,413.45
2,147.65
+ 51.94
Spares
70.59
100.52
+ 42.39
Performance of segments:
The sales breakup for FY 99 & FY 2000 is as follows:
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Motor cycles
26,642
28,198
+5.84
Sales
Unit
Items
03/99
03/00
% Change
Motor cycles
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FUTURE PROSPECTS
The Future Prospects of SAHANA Motors Ltd., ate listed below: 1. To introduce new models of Bikes, in order to attract the Male Potential Customers. 2. To introduce new models of scooters, in order to attract the Female sectors. 3. To give good services to the vehicles. 4. To satisfy the customers need by giving good models. 5. To increase the Sales or Turnover Ratio. 6. To enhance customer Loyalty. 7. Already they introduced the Pass Point System, it is a continuous process. Here, the customers do their vehicle service in Sahana Motors they were issued a point & who reach the targets there are given Prizes at every Stages. 8. To have good customer relationship.
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PRODUCT PROFILE
Producing the product is not the end task; the marketing a product is the essence of any manufacturing concern or an organization. The product can reach the
consumers from the sales promotional activities, etc., done by the company. Hero Honda Motors ltd., introduced various types of vehicles in order to cater to various market segments & customer & consumer need market its products like through its authorized dealers. Hero Honda ltd., is said to be most technologically advanced bikes manufacturers in the country according to the industrial analysis. The company have given much importance to customer & consumer need & satisfaction & have spend more capital on R&D in order to meet intensive competition & other problems, company have come out with new models in a relatively short period. The most popular bikes manufactured by Hero Honda Ltd., are: 1. 1985 2. 1989 3. 1991 4. 1994 5. 1997 6. 1999 7. 2001 8. 2002 9. 2003 10. 2005 CD-100 SLEEK CD-100SS SPLENDER STREET CBZ PASSION DAWN, AMBITION CD DAWN ,SPLENDER+,PASSION+,KARIZMA SUPERSPLENDER,CD
DELUX,GLAMOUR,ACHIVER,HUNK
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Hero Honda CD-100: Indias first 4-stroke bike is still Indias foremost & the reasons for its Popularity are apparent, economy, reliability & the capacity to go on & on year after year. The CD100s 4-stroke engine is derived from Hondas tough economy series range of engines, which have proved their mettle for the last 36 years worldwide.
Hero Honda CD-100SS: Wider tires, higher ground clearance, a special engine guard, this bike any way you looks at it represents toughness, & the ability to handle even off road, dirt track condition with case. All this with the economy & comfort you have always associated Hero Honda with CD-100SS adds a new dimension of strength to Hero Hondas world famous 4-stroke technology.
Hero Honda Street: Presenting Hero Honda Street Smart, a bike from the worlds favorable Honda cub family, this 4 stroke, 100CC bike from Hero Honda delivers great pick up, with remarkable economy, rotary gears & Auto-Clutch make it amazingly maneuverable, So you can smile yours way in & out of crowded traffic. Hero Honda Joy: Hero Honda Joy has a newly designed round headlight with a multi reflector, Joy is provided with unique suspension that soaks up bumps of unkind roads this protects the bike & shields the side from discomfort, you can also enjoy longer sides on Hero Honda Joy, thanks to its improved fuel tank capacity of 10.5 liters. Hero Honda CBZ:
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Advanced pollution control feature which is the first of its kind in India keeping alive the Hero Honda tradition of environment friendly bikes, it is equipped with 5 years a& a 156CC engine that generates 12.5 bhp power, enough to take it from 0-60 kmph in first five seconds & touch the top speed of 100 km. Hero Honda Splendor: The 4-stroke 100CC driving machine from Hero Honda. A bike that will stop you right in your tracks. Both by its looking performance. Splendor means a lot of other things too. Like getting all the admission looks. On the pride you fell in sliding a bike that meets the pollution control standards of the next decade, for today its splendor. A bike that will be called a turning point in motorcycling. So check it out tomorrow has arrived in styles. Hero Honda Splendor Plus: The worlds best selling motor cycle just got between, the splendor plus, a bike that will stop you right in your tracks. Both by its looks & performance. It has new, clear bright multi reflector headlight, multi reflector taillight & stylish graphics, which give its good looks. The pride of riding a motorcycle that meets the pollution control standards of this decade, which is the Splendor Plus, the new face of trust. Hero Honda Passion: The 4-stroke, single cylinder, air-cooled OHC driving machine from Hero Honda. It is designed as contoured fuel tank, multi-reflector trapezoidal, headlight & taillight & streamlined side cowl. The safety like position lamp, side reflectors. Wider wheel base, in comforts it has adjustable rear cushion, wide & comfortable seat, broad rear tyre & double credible tubular frame. And with convenience, it has large storage space with locking facility, helmet holder & lockable seat. Hero Honda Ambition: Ambition was launched on 2002 by Hero Honda motor lid., targeting people aspiring to move up in life, the brands to move up in life, the brands success led to a creation of a new motor cycle
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segment of powerful (power + fuel) motor cycle. To communicate the care of the brand the company also appointed a team Ambition to connect with the customers. Team Ambition comprised the cricket starts of the country. Hero Honda CD-DAWN: The company launched CD-DAWN, in the motor cycles basic segment, targeting Indias substantially sized 1.5 million unit basic segment that contributes almost 30 5 of the total Indian Motor Cycle market positioned as the new value motorcycle. The models has been an immediate success & has became the bench mark for basic segment motor cycles the model in first three moths sold more than 30,000 units. Hero Honda CD-Deluxe: Presenting CD-Deluxe, the stylish, true value 100CC. Motorcycle from Hero Honda, Encompassing the legendary Hero Honda values of fuel efficiency, economy & rocksolid dependability. As smooth ride with maximum fuel efficiency & at an affordable price, now LIVE DELUXE, RIDE DELUXE! The CD Deluxe comes with a unique suspension that smoothens & aborts bumps on unkind roads & provides you with continuous riding comfort.
Hero Honda KARIZMA: The Hero Honda company Launched Indias first premium sports motorcycle KARIZAMA. The 223cc motorcycle was targeted at the sports bike seeking the ultimate combination of power, performance & style, living to the reputation of the company KARIZMA was also an immediate success, selling 2000 units. In the first month of its launch, in 2001. The company achieved the coveted position of being not only the largest two-wheeler manufacturing company in India but also the world leader.
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Hero Honda Hunk: Hero Honda Hunk was launched in the year April 2005. With the new Quantum core engine at its heart, the new Hunk is destined to redefine all parameters of performance. A motorcycle that is capable of delivering mileage that is unmatched even by the legendary Hero Honda Standards, along with enhanced power. Ride the bike you can find the perfect combination of everything that you ever wished for in a motorcycle. Hunk is 150CC
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Interpretation: The also table helps to know the age of the respondents Age is one of the important factors that will influence Consumer Behaviour. As the customer
passes on through different stage of life cycle he may have different motives regarding purchasing decision. From the above table it could be analyzed that 18 RESPONDENTS of the respondents belongs to the age group of 25-45, 26 RESPONDENTS belongs to age group of 18-25, 06 respondent belongs to age group of 46-55.
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13 10 14 13 50
Interpretation:
The above table helps to know the Occupation of the respondents. The Occupation of respondents will influence the demand for the product, as is helps in analyzing the Market Potential. A persons occupation has a direct effect on his choice of Goods & Services. From the above table it can be inferred that10 of the respondents are employed class
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& another 14 of the respondents are Business or Professional, 13 is students.and another13resoondens are agriculturists and house wifes.
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Category 1 Category 2 Category 3 Category 4 Series 3 Series 2 Series 1
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Table Title
26 18 6 50
Interpretation: To have steady growth & loyal consumers, effectiveness of service should be a continuous one & there should be some consistence in the quality also. According to the table 60% respondents feel that the efficiency is excellent 26.and 18 respondents feel good. And remaining 6 are feel to better.
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From the survey conducting the following the suggestion given by the respondents for the improvement of hero Honda bikes and our personal suggestion as i am user of hero Honda bikes. Specific Findings : 1. 75% of the respondents were influenced by the Mileage of the vehicle 2. 100% of the respondents feel that the availability of Spare Parts of Hero Honda Bikes is easily available. 3. More of the respondents feel that the Price of the Spare Parts is Acceptable 4. 80% of the respondents feel that the Dealer Customer relationship is Normal, attending immediately. 5. 60% of the respondents were influenced by the Television in purchasing their vehicle 6. 52% of the respondents feel that the Brand Image is Highly Satisfied. 7. 76% of the respondents feel that the Engine Capacity is Acceptable 8. 52% of the respondents feel that the Resale Value is Acceptable. 9. 80% of the respondents feel that the after sales Service is acceptable. 10.Some respondents feel Hero Honda marketing strategy are good
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SUGGESTIONS
1.
Customers are real co-partners:Customers are changing. Brands are changing slower than the
customers. If a brand becomes popular, a set of potential customers while taking decision to purchase a two-wheeler may not want to go for it, as many started using it. So, if the marketer wants to create demand continuously, they should provide certain unique features with which they feel better & different from others by possessing the product of that brand. So, Hero Honda in this aspect has to
.
Add more features like silencer cover, hidden luggage compartment. Introduce some heat resisting mechanism, which avoid stretching problem during winter seasons. Make it more Environment friendly. Improve the Ergonomic to suit the physique of man. Adopt better mechanism to improve.
2.
Transparent Marketing : Instead of increasing only sales, Market share & profit, every
marketer has to build faith & trust in the minds of consumers. So, transparent marketing helps in forming a honest & better market Strategies, for this, Hero Honda can
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Providing offers at absolute free of cost. Transparency in services charges & the spare parts changed. Transparency in creating awareness on the draw backs of the product also, which increases the credibility & loyalty of consumers.
3.
which speak to the heart. Some of the aspects of such intangible part that Hero Honda has to concentrate are as follows: Timely delivery of vehicles specially after services. Increasing the valid period of passport scheme & increase the frequency of Gift ceiling levels which enhances the eal of customers to reach it soon. Voluntary commitment towards customers like phone reminders, E-mail reminders, etc.
4.
Wise Pricing : There are lots of pricing policies that a company can select. But,
every marketer has to concentrate on this more to leave a sense of balance between benefits offered & price charged i.e., a Win-Win situation for both customers & marketers. So, Hero Honda can concentrate in the following to adopt Wise Pricing.
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Reduce the price of Spare Parts. Reduce the charge for services.
5.
Word-of-Mouth Advertising, if they satisfied with the product & benefits. To achieve this & to build the brand in a long run, the Hero Honda can consider the following. Help them during vehicle re-sales, especially if its a Hero Hondas Product.
Conduct Customer-get together & select Best Customer for the year. A providing best suggestion award for the year
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CHAPTER.6 CONCLUSION
After finding some findings and suggestions we can conclude that The existing Hero Honda bikes are excellent and same is to be maintained in future but respondents prefers Hero Honda bikes because of good quality and suitability for all the ages of peoples
It is not definitely an exaggeration, if one says that Hero Honda is the largest selling motor bike in India. The main reasons are Hero Honda marketers have certain values, beliefs & care on their customers. The major asserts of Hero Honda are : Luxurious & Lovable look Unbeatable Brand Image Admirable after sales service Attractive Advertisement Convincing customer-care Hero Honda has to concentrate on the following aspects, as per the respondents opinion during the survey. Provision of Extra Features More attracting offers Flexible finance schemes Transparency in policies Reduction in price Improvement in Mileage. Frequent customer contact etc,
Finally we can conclude that Hero Honda is one of the market leader for manufacturing the good quality bikes and providing good services and customer satisfaction.
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QUESTIONNAIRE
Project report on consumer behaviour towords Hero Honda bikes in shimoga Dear sir/madam
We would be great full if you could spare a few minutes to help to complete this customer questionnaire of above project Self introduction: Name: Age: Sex: Qualification: Annual income: Occupation: Questions: 1. Do you have a bike? Yes [ ] No [ ]
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Herohonda[ ] TVS[ ]
Bajaj[
Others----------------
3. why you select this bike? Mile Style[ Price[ ] ] age[ ] Durability[ ]
4. from where you got information about Hero Honda? Advertisement [ Agencies [ ] ] friends [ ]
Others-----------------
Others-----------------
Others--------------
8. How do you feel about mileage of the Hero Honda bike? Good[ Better [ ] ] excellent[ Average[ ] ]
Yes[
No[
15.Are you got any other benefits from hero Honda company? Oftersaleservice [ Others---------------16.Are you fully satisfied with hero Honda services? Yes[ ] No[ ] ] Insurance[ ]
17. according to you which is the major compotator to hero Honda company? Bajaj[ ] ] TVS[ ] ]
Yamaha [
Suzuki [
18.How do you feel hero Honda bikes are different from other company bikes?
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------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------19.what are the modifications can company apply to improve its sales rate
------------------------------------------------------------
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CHAPTER 8
BIBLIOGRAPHY
Marketing Management
-
Philip Kotler.
www.indianinfoline.com.
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