Hero Motocorp Ltd.

For the Hero within

Atiesh Mehta Rahul Keshavan Rohan Chavan

Yash Shah
Yawar Mahimwalla Vikas Sharma

Introduction
Hero MotoCorp is more than a national brand Worlds largest two wheeler manufacturing company Wider choice of globally-benchmarked products at competitive prices

Research
Tools:
Primary data: Questionnaire (Data collected outside the college.) Sample Size: 50 nos Secondary data: Annual reports of the company from website of company.

Questionnaire
1. Which bike you like the most? (a) Bajaj (b)TVS (c)Hero Motocorp (d) Yamaha (e) Others_______ 2. Which bike of Hero Motocorp you like the most? (a) CD Dawn (b) Splendor (c) Passion (d) Karizma (e) Others_______ 3. Do you own a Hero Motocorp Bike? (a) Yes (b) No 4. If yes Which Hero Motocorp Bike? ________________________________________________________ 5. Why you brought Hero Motocorp Bike? Utility Vehicle (b) Status Symbol (c) Style 6. What ranking you would give to following features of Hero Motocorp bike? Fuel Consumption Engine Capacity Average Mileage 7. Rate the Hero Motocorp bike on the level of satisfaction? Highly Satisfactory 1 ___2____3____4____5 Highly unsatisfactory 8. How much you spend on servicing of Hero Motocorp Bike 0-1000 (b)1000 -2000 (c) 2000-3000 (d) 3000-4000 9. Do you have faith on Hero Motocorp Brand Yes (b) No

Share Holding Pattern

Share Holding pattern
Promoters MF FI/ Banks Insurance co FII Corporate Bodies Indian Public Others

%ge

360o 2% 1% 7% 33% Promoters MF FI/ Banks

52.21 1.15 0.12 3.89 32.79 1.91 7.16 0.77

187.95 4.14 0.43 14.00 118.04 6.87 25.77 2.77

52%

Insurance co FII

Corporate Bodies
4%

0% 1%

Indian Public Others

Source: Annual Report 2010-2011

Which bike of Hero Motocorp you like the most?

25 20

15 10
5 0 CD Dawn Splendor Passion Karizma Others

From bar diagram we can conclude that Splendor is most liked bike of Hero motocorp

Mean
Mean is the mathematical average of set of numbers. The average is calculated by adding up two or more scores and dividing the total by the number of scores. Advantages: Finds the most accurate average of the set of numbers. Disadvantages: Outliers can change the mean a lot..Making it much lower/higher than it should be

Mean
Age Group 20-24 24-28 28-32 32-36 Number (f) 28 10 8 4 50 Mid-point(x) 22 26 30 34 Fx 616 260 240 136 1252

X=fx n
Mean is 25.04 Which Means data is collected from persons of average age of 25 Yrs.

Geometric Mean
Year Return on Average Capital Employed 62.3% 76.4% 50.9% 49% 51.6% At Base of 100 Logx

2010-2011 2009-2010 2008-2009 2007-2008 2006-2007

162.3 176.4 150.9 149 151.6

2.2103 2.2465 2.1786 2.1732 2.1807 10.9893

Elogx = 10.9893/5 = 2.1979 GM = Antilog(Elogx) = Antilog(2.1979) GM = 157.7 = 57.7%

Mode
Mode is defined as the value which occurs maximum number of times i.e. having maximum frequency. Advantages: Allows you to see what value happened the most in a set of data. This can help you to figure out things in a different way. It is also quick and easy. Disadvantages: Could be very far from the actual middle of the data. The least reliable way to find the middle or average of the data.

Mode
Which bike you like the most Bajaj TVS Hero Motocorp Yamaha Others f 10 7 18 13 2

Mode is a value which occurs maximum number of times that is having maximum frequency Here we can see Hero Motocorp has maximum frequency of 18 which means Hero Motocorp bikes are used most amongst samples collected

Median
Median is the measure of central tendency which appears in the middle of an ordered sequence of values. I.e. half of the observations in a set of data are lower than it and half of the observations are greater than it. Advantage: Finds the middle number of a set of data, so outliers have little or no effect. Disadvantage: If the gap between some numbers is large, while it is small between other numbers in the data, this can cause the median to be a very inaccurate way to find the middle of a set of values.

Median
Price range f 0-1000 1000-2000 2000-3000 3000-4000 05 26 15 04 05 31 46 50 cf

Median class lies between 1000-2000 Median = L+ n/2 - (P.C.F) x i f = 1000 + 25- 5 x 1000 26 =1000+ 0.7692x1000 =1769.20 It means positional average is 1769.20

Standard Deviation
Standard deviation is by far the most important and widely used measure of studying variation.It shows how much variation or dispersion there is from the average (mean, or expected value). A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data points are spread out over a large range of values. It significance lies in the fact that it is free from defects which earlier method suffered and satisfies most of the properties of a good measure of variation.

Standard Deviation
Years 2010-11 2009-10 Profit After Tax 9.9 14.1 x-x -0.56 3.64 -0.06 -1.16 -1.86 (x x)2 0.31 13.25 0.00 1.35 3.46 18.37

2008-09
2007-08 2006-07

10.4
9.3 8.6 52.3

SD = E(X-X)2 n SD = 18.37/5

SD = 1.92

Skewness
The term skewness refers to the lack of symmetry. When a distribution is not symmetrical it is called a skewed distribution. The measure of skewness indicates the difference between the manners in which observations are distributed as compared to normal distribution. In a symmetrical distribution the value of mean, mode & median are alike. In a skewed distribution the values differ in a positively skewed distribution if mean is greater than mode, and median lies between mean and mode. Ina negatively skewed distribution mode is greater than mean and the median lies between mean and mode.

Skewness
How much you spend on servicing of Hero Motocorp ? d= (x-a)/i f 0-1000 1000-2000 2000-3000 3000-4000 05 26 15 04 50 Mean = x 500 1500 2500 3500 fx 2500 39000 37500 14000 93500 -1 0 1 2 1 0 1 4 -5 0 8 5 0 16 25 0 225 64 314 d2 fd fd2 (fd)2

15 15 18 36

Mean is Rs.1860

Max Frequency: 26, Modal Class: 1000-2000

Mode = l + __1__ x i 1 + 2 Mode = Rs. 1656.25

SD =

fd2 - fd n n

SD = 0.77 * 1000 = 770 Skewness = Mean Mode SD = 1860 -1656.25 770 = 0.2646 Positively Skewed

Correlation
If 2 quartiles vary in such a way that movement in one is accompanied by the movement in other, these quantities are said to be co-related. For e.g. there exists some co-relation between family income and expenditure on luxury items or the price of commodity and the demand. The statistical tool with the help of which relations between these variables is studied is called as co-relation. If one variable is increasing and other on an average is also increasing or if one variable is decreasing and the other on an average is also decreasing co-relation is said to be positive. On the other hand if the variables are varying in the opposite directions i.e. if one variable is increasing and the other is decreasing or vice-versa co-relation is said to be negative.

Correlation
Correlation between Advertising Expenses & Sales.
Sales(x) in (000s)
2010-11 2009-10 2008-09 2007-08 2006-07 5402 4600 3722 3337 3336

Advt (y)

dx(x-a)

dy(y-a) dx2

dy2

dx.dy

382.6 364.97 249.6 221.78 241.43

1680 878 0 -385 -386 1787

133 115.37 0 -27.82 -8.17 212.38

2822400 770884 0 148225 148996 3890505

17689 13310.24 0 773.9524 66.7489 31839.94

223440 101294.9 0 10710.7 3153.62 338599.2

Correlation = nEdx.dy-Edx.Edy
nEdx2 (Edx)2 . nEdy2 (Edy)2

Correlation = 0.96

Scatter Diagram
450 400 350 300 250 200 150 100 50 0 0 1000000 2000000 3000000 4000000 5000000 6000000

Strongly Positive

Regression
Regression analysis is described as explanation of unknown value of a variable with the help of known value of another variable There are two lines of regression
(1) y on x (2) x on y

Regression
Sales(x) (in 000s) 2010-11 2009-10 2008-09 5402 4600 3722 R&D (y) (in Crores) 32.15(2008-09) 30.31(2007-08) 32.30(2006-07) x2 y2 Xy 173674.3 139426 120220.6 291816 1033.6225 04 211600 918.6961 00 138532 1043.29 84

13724

94.76

641948 2995.6086 88

433320.9

X = 13724/3 = 4574.66 Y = 94.76/3 = 31.59 bxy = Exy/n x y Ex2/n x2 byx = Exy/n x y Ey2/n y2

bxy = 433320.9/5 - 144513.5094 64194888/5 - 20927514.12 = 0.0071 byx = 433320.9/5 - 144513.5094 2995.6086/5 997.9281 =145.06

y on x y y = byx(x-x) y= 145.06(x-4574.66)+31.59 y = 145.06x-663568.59

x on y x-x = bxy(y-y) x = 0.0071(y-31.59)+4574.66 x = 0.0071y +4574.44

Thank You