Finalaaa

THEORITICAL BACKGROUND

Edward Butler, an English man, built the first motor tricycle in 1884. the

first gasoline engine motorcycle to appeal publicly was built by Gottlieb

Daimler of Bad lsnndtstt, Germany in1885. The first practical engines &

motorcycles were designed by the French, Belgians, followed by British

German, Italian and American markers.

The popularity of the vehicles grew, especially after 1910. During World

War I the motorcycle was I the motorcycle was used by all branches of the

armed forces in Europe, Principally for dispatching. After the war it enjoyed

as port vogere until the great depression began in 1927. After World War II

a revival of interest in motorcycle lasted into the 20 th century. With the

vehicle being used for high-speed touring and sport competitions.

Today’s two wheeler market is extremely competitative and difficult to

imagine by a layman. With the introduction of India and foreign

collaborated two wheelers in India urban consumers aspire to process the

latest in terms of look, technology, energy, efficient & sleek looking models.

Some of the marvels of two of the marvels which still remain aspiring are: -

The Oxford College of Business Management 1

Millet of 1892

Dedion – Buton – 1895

Hide brand & Wolfmueller 1894

Orient Aster – 1898

Harley – Davidson – 1902.

Thought Two – Wheeler segment in India showed inertia today it is one of

the fastest growing 2-wheeler segments.


INDUSTRY PROFILE

The two-wheeler market has had a perceptible shift from a buyers market to

a sellers market with a variety of choices. Players are competing on various

fronts such as pricing, technology, product design, productivity, sales

process, after sales service, marketing and distribution. In the short term,

market shares of individual manufacturers are sensitive to capacity, product

acceptance, pricing and competitive pressures from other manufacturers.

All the four segments, Motor Cycles, Scooters, Scooerettes and Mopeds

have witnessed capacity additions in the last one year and it will continue in

the upcoming period as and when the foreign companies opens a local

subsidiary. Over this period as and when the foreign companies opens a

local subsidiary. Over this period, only the Motor Cycle segment is

expected witness higher demand vise-versa supply, while the Scooters,

Scooterettes and Mopeds supply will outstrip demand.

As incomes grew and people felt the need to own a private means of

transport, sale of two-wheelers raised. Penetration of the two-wheelers is

expected to increase to approximately to more than 25%by 2005.


The Motor Cycle segment will continue to lead the demand for two-wheelers

in the coming years. Motor Cycle sales is expected to increase by 20% as

compared to 1% growth in the Scooter market and 3% by Scooterttes and

Moped sales respectively for the next two-years.

The Indian two and three wheeler industry produced and sold about

4.5million units in 2003-2004. Like any other Indian Industry, the policy

environment guided and controlled this segment of the industry as well.

Licensing norms ruled the day till mid 80’s. Access to foreign technology

inputs and foreign investment were strictly government controlled.

Since mid 80’s, the Indian automobile industry was administered select doses of

liberalization. Foreign collaborations with equity up to 26%, fresh licenses and

conditional CKD imports, etc. were allowed. This liberalization coupled with the Indian

market potential attracted world majors like Honda, Yamaha, Suzuki and Piaggio setup

their Joint Ventures during mid 80’s in India. From 1991 onwards, the industry was de-

licensed. Automatic approvals for foreign equity up to 51% and equity participation in

excess of 51% with specific approvals entered the rulebook. Honda converted one of its

Joint Ventures to a 51% subsidiary

On regulation front, Central Motor Vehicles Regulations mandates the

safety, emissions and other norms. Vehicular emissions standards came into

effect first in 1991 and were tightened further in 1996. For the two and three

wheeler these are among the tightest in the world. Further tightening has

taken effect from April 2000.

The four-stroke Motor Cycle has added new dimensions to the two-wheeler

segment. The major players in the Motor Cycle market are Bajaj Auto Ltd.


with its Pulser DTS-i, Hero Honda Co. with its Hero Honda Karizma.

Competition is intense in all segments of the two-wheeler industry with fuel

efficiency and price being crucial considerations for success. In the recent

past, a manufacturer’s ability at product innovation and opening new market

niches have also been crucial for the growth of the industry. Bajaj Auto Ltd.

entered the Motor Cycle segment in the mid 80’s. Since then it has won

market shares increasing indigenisation and by opening new market niches

for their products. Bajaj has emphasized its higher safety and superior

quality. Fuel efficiency allowed Hero Honda to dominate the 100cc Motor

Cycle segment for most of the last eight years. Bajaj Auto Ltd. has gained

considerable market share in this segment since it also launched a four-

stroke Motor Cycle two years ago. The 100-cc segment is further power

(dominated by Bajaj Pulser DTS-i), fuel economy and sub-segments. The

semi-urban and rural markets will increase in importance in the future and

all manufacturers’ plan to launch heavier bikes with stronger suspensions.

The relatively affordable and stable prices of Bajaj Motor Cycles backed by

flexible loan options have caused other Motor Cycles to continuously lose

market share to them in the previous few years.


Title of the study:-

“Consumer perception towards Hero Honda with reference to

Sales, Service and Product’’.

Place of the study:-

The study was conducted in Bangalore. The showroom

MAJESTICS MOBIKES (P) LIMITED, which is located at

125, R.V Road, Bangalore-560004.

Objectives of the study:-

1. To analyse consumer perception towards HERO HONDA

motorcycle in general .

2. To analyse consumer perception towards the sales process and

service of the HERO HONDA and company’s motor cycle

performance.

3. To get feed back on what consumer expects from the HERO

HONDA.

4. To find the factor responsible for opting HERO HONDA

motorcycle.

5. To find out consumers perception with respect to dealer

effectiveness.

6. To come out with appropriate conclusion and recommendation

as based on analysis and interpretation of data.


Scope of the study:-

The study helped in knowing about awareness and satisfaction

of customers towards “Hero Honda”. As those products has a

very good reputation in the market, the feed back, perception

and awareness of this product was easy to gather. It also helps

us to increase our practical knowledge towards marketing of a

company.

Limitations of the study:-

a) In this study it was not possible to collect the opinion of all the

customers owing to personal constraints. So assumption were

made that the respondents will provide correct information.

b) The study had to be completed within a specified period of time

and in a particular showroom. So the findings can not be

generalize for the company as a whole.

c)As the other areas were untouched the report may not be applicable

for those areas.


Research Methodology:-

The research was carried out through survey method. Filed work was

Carried out in order to collect data. Data was collected through

questionnaire, interview & related websites. The analysis of the data

was done through simple statistical technique such as drawing of

percentage for generalization, construction of tables for tabulation the

primary data. The use of diagram to have a better understanding

adopted in study.

Research Instrument :-

Research design is an arrangement of condition for collection & analysis of

data in a manner that aims to combine relevance to the research work with

economy in proceeds.

It provides the signification of procedures for collecting and analyzing

the information required problems. It provides the scientific frame works for

conducting some research investigation. Consumers research today use two

different types of research methodology to study consumer behavior.

1. Quantitative:-

Quantitative research’s descriptive in nature and used researches to

understand the efforts of various promotional inputs or the consumers

thus enabling markets to predict consumer behavior


2. Qualitative:-

Qualitative research method consist of depth interviews, focus

groups metaphor analysis, college research and projective techniques

this technique is administered by a high-trainered interviews-analyst

that also analyze the findings. Thus they tend to be some what

subjective because sample sites are generates to a larger population

SOURCES OF DATA:-

The next stage of marketing research calls of developing the most efficient

plan for gathering the needed information to solve the problem for this task,

researcher has to look out for the type and source of data which may field

the desired results for stated objectives. The design of data collecting

method is the backbone of research.

There are basically two methods of data collecting

a) Observation

b) Survey

In observation the researcher personally collects the data where as in the

survey method data originates from the persons on whom the research is

being introduced.

Questioning in the process of data collect used in the survey method.

Questioning as its name suggests asking questions to people who are though

to have the desired information.


Data can be distinguished as:-

Primary data:-

Primary data consists of original information for the specific purpose at

hand. It is first hand information for the direct users of respondents. The

tools used to collect the data may vary depend can be collected through

various methods.

Structured questionnaire:-

The structured questionnaire most common instrument in collecting primary

data, broadly speaking a question presented to a respondent for his/her

answer. There are two distinct form of questionnaire

I. Close-end questionnaire

II. Open-end questionnaire

Close-end questionnaire:-

Close-end questionnaire consists of closed questionnaire i.e. it includes all

the possible answers and the respondent makes a choice from them.

Open-end questionnaire:-

Open-end questionnaire consists of open questions i.e. it allows the

respondent to answer in his/her own words. For this study the researcher

uses structured questionnaire for collection primary data. In this

questionnaire, the researcher uses both Close-end questionnaire & Open-end


questionnaires for getting effective and accurate information from the

respondents.

The questionnaire is designed based as on market condition to create

awareness, knowledge and to get feedback from the respondent. The

questionnaire was developed for the industrial sector, domestic sector and

the premise market.

All the people were contracted personally and they were interviewed by

stating the objective of the study the data, which are primary in nature are

recorded in the questionnaire which are retrieved for analysis.

Technique of analysis:-

The questionnaire was checked for completeness and the data were tabulated

individually for all the questions by using tally sheets. In this research

various percentages are identified in the analysis and they are prevented by

bar and pre-charts and frequencies in order to provide clarity.

Survey method:-

Survey method stands midway between he casualness of observational

purpose of undertaking such method, is to learn about peoples knowledge,

beliefs, preferences, satisfaction and so on and to measure three magnitudes

in the population. There are various techniques to be adopted.

1. Telephone survey

2. Mailed survey


Observation method:-

This method research gathers fresh data by observing the relevant actor and

setting. The observation method of collecting data in monitoring and

recording of events or actions at the spot of their occurrence through

personal or mechanical method. There are various methods to observe a

particular even or action.

Secondary data:-

Secondary data is the data which is already been collected and assembled.

This data is available with the companies or firms and it can also be got from

newspapers, periodicals, magazines etc.,

The research has collected the required secondary data form the records of

the organizations as well as from journals, newspapers, text books etc.,

information is also obtained form the staff and management of the

organization.

1. Internal data:-

Internal data is the that is available within the organization and they are

produced or compiled by the organization in its normal operation. They

include credit records, transportation cast, raw materials, general and

development budgets etc.,


2. External data:-

External data are the data that is generated and collected from events and

sources outside the firm premises. External data is available in plenty.

This includes government publication, periodicals and books commercial

data etc.,

Definition of TheTerms Used

MARKET:-

“ A Market is an area for potential exchanges. Thus market is a

group of buyers and sellers interested in negotiation the terms of

purchase sales of goods/services. The negotiations work may be direct

or indirectly conducted. In the market ownership and possession of

products would be transferred from the seller to the buyer as per sale

contract.

MARKETING:-

“ Marketing is a social and managerial process by which individuals

and groups obtain what they need and want through creating, offering

and exchanging products and services of that value with others”.

Phillip Kotler.


CONSUMER:-

A person who purchase or has the capacity to purchase the goods of

service often for sale by the marketing firm in order to satisfy personal

need and desires.

PERCEPTION:-

Perception is the sensing of stimuli external to the individual

organism the act or process of comprehending the world the world in

which the individual exists.

Perception has been defined by social psychologists as the

“Complex process” by which people select organize and interpret

sensory stimulation in to a meaningful and coherent picture of the

work.

ATTITUDE:-

Social psychologist defined attitude as an emotionalized

predisposition to respond positively or negatively to an object.

Predisposition can be thought of as categories of meaning stored in the

memory of a person and is based on previous experience. Predisposing the

person to have in an specific manner towards a certain objects in the

environment.


BRAND:-

A brand is a name, term, symbol, design or a combination of them

which is intended to identify the goods or services of one seller or group of

sellers and to differentiate them from those of competitors.

MARKETING RESEARCH:-

Marketing research is the systematic gathering, recording and

analyzing of data about problems connected with the market place, i.e.,

Problems relation to product price, promotion and place and distribution of

the marketing size.

CONSUMEER BEHAVIOR:-

Consumer behavior can be defined as “all psychological, social and

physical behavior of all potential consumer as they become aware of

evaluate, purchase, consume and tell other about product and services.

L.G. Schiffman.


COMPANY PROFILE

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 Honda 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 giant in the industry. Add to that technological

excellence, an expansive 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

2001-02 14,25,195 units

2002-03 16,77,537 units

2003-04 1.9 million units


The story of Indomitable Enterpreneur

From rolling 60 cycles a day, the Hero Group chairman has steered his

group to becoming Indias largest two wheeler maker

(Yoshihide Munekuni, Chairman – and representative, Honda Motor

Company Ltd., Japan, announced that HERO HONDA has emerged as the

largest two wheeler company in the world having sold. 13 million motor

cycles during 2001. It was a proud movements for Brij Mohan Lal the

patriach of the Munjal family, which controls the HERO Group for Lall a

Businessman who is said to have ruled his sprawing family (he has several

brothers and nephews) with an iron fist, accolades have pouring in for years.

In the late eighties, the group became the largest producer of bicycles in the

world. Hero Cycles, with the capacity to produce 6.2 million bicycles per

annum, continues to be the world’s largest bicycles manufacturer.

It’s closest competitor is a company called Giant which produces at various

location including Taiwan, China and U.S.A. but, it’s total capacity does not

add to more that 5 million,” sources said. This has found the Hero group a

place in the Guiness book of world records.

The Munjals of Ludhiana have come a long way since their first venture

Hero cycles was set up in 1956. At that time, the company used to

manufacture 60 cycles a day. Now, it churns out over 18,500 cycles every

day. In a fully integrated scale of operations, the Munjals role their own

steel and still and make critical components like free wheels for their

bicycles. In their early years the Munjal realized that it was important to


build long lasting relationships with workers, dealers and vendor. This was

to pay which dividends so on. In their early 1980’s Honda of Japan had

decided to set a shop in India and was on they look out for a partner it has

received over tunes from the Who’s who of India business. At the end of the

long list was the name of Munjals. Even in their reckoning, The Munjals

saw little chances of walking the altar with Honda. So they were pleasantly

surprised when one day they received a summons from Honda to link the

deal. In Japan, the Munjal’s were told by the Honda brass that they along

had a way of doing business that was akin to that of the Japanese.

Hero Honda motors Ltd is the undisputed leader in the country is

Motorcycle market. Its share is the largest two wheeler markets in the world

(after china). Is close to 50 percent. It’s best selling brand includes

Splendor, CBZ and Passion. Its splendor is the largest selling motorcycle in

India. Hero Honda is also looking at sourcing cheap components from china

to produce low cost motor cycles.

Once a small time Businessman from Ludhiana. Lall has done it all. He’s

Wealthy through he lives modestly – crowned a stellar business corne with

the presidency of the confederation of Indian Industry. Famous quote of

Mr.Brijmohan Lall Munjal is “WE MUST DO SOMETHING FOR THE

COMMUNITY FROM WHOSE LAND WE GENERATE WEALTH”


MISSION STATEMENT

Hero Honda is continuously striving for synergy between technology

systems and human resources to provide product and service that meet the

quality performance and price aspiration of our customers. While doing so,

we maintain the highest statement of ethical and social responsibilities.

Consistently innovative products and processing & developing team that

keep momentum going to take the company to excellence in the new

millennium.

Brijmohan Lall’s inspiration to enter the two-wheeler world came from a

desire to provide the cheapest form of transport for the poorest of the poor.

Post-partition, Brijmohan Lall Munjal and his brothers relocated to

Ludhiana. They had to begin from scratch. They set up a smanufacturers of

bicycle components. From then on there was no looking back. In typically

modest manner, B.M. Munjal accords a great dealof the credit for his

success to his family and his team.

He traversed the road to success following these principles:

Trusting his uncanny instincts

A unique approach to people – one from the heart

Ahead of his time, every time!

The ideal corporate citizen! Showing others the way.


BOARD OF DIRECTORS

Chairman Mr. Brijmohan lall Munjal

Managing Director Mr. Pawan Munjal

Joint Managing Director Mr.Akio kazausa

Director Mr.Shinichi Nakayama

Director Mr.Satyanand Munjal

Director Mr.Om Prakash Munjal

Director Mr.M.P.Wadhawan

Director Mr. S.P.Virmani

Director Mr.O.P.Gupta

Director Mr.M.Sudo

Director Mr.S.Toshida

Director Mr.N.N.Vohara

Director Mr.Pradeep Dinodia

Director Gen.(Retd) V.P.Malik


DEALERS PROFILE

MAJESTIC MOBIKES (P) LIMITED is private Limited company started in

the year December 1999. Earlier it was a partnership company established

in the year 1985, and were appointed as the Authorised Dealer’s by HERO

HONDA MOTORS LIMITED, NEW DELHI, for sales, spares and

servicing of the motorcycles Manufactured by them. Due to the growing

business and to maintain the ever changing market and the marketing

condition the partnership concern got changed to Private limited company.

The company constitutes of a board consisting of eight directors. Basically

the Company belongs to two families. Hence, four directors participate from

each Family.

With a humble beginning of 60 motor cycles sales per month in 1985, the

company has grown to a sale volume of 600 motorcycles presently and the

servicing of motor cycles has reached to 3000 + mark in the service center

per month. And also the company has achieved an overall sale of Rs.120

lakhs spare parts in the year 2002-03.

Keeping in mind the ever growing demand in sales, spares and servicing in

the Hero Honda Motorcycles, the Board of Directors felt it at most necessary

for Expansion of the infrastructure to give a very smooth operation of the

dealership and provide STATE OF ART SHOWROOM AND WORKSHOP

FACILITY to its valid customers.


In the year 2000 a plot measuring 6750 sq.ft. was purchased and in due

course of time an infrastructure consisting of 21000 sq.ft. In five levels a

building was constructed for smooth functioning.

In the month of August 2002 the new infrastructure was inaugurated and on

11th of August 2002 the operations commenced to the customer delight and

for the at most Satisfaction of HERO HONDA MOTORS LIMITED.

The company is driven by its Managing Director, Sri. H. Parameshwara with

enthusiasm and dynamic and supported by other Directors giving valuable

suggestions in making major decisions to improve upon business prospects.

In the year 2003-04 the company achieved a sales of Rs.250 lakhs and

expect to cross Rs.300 lakhs in the year 2004-05.


Organisational chart of MAJESTIC MOBIKES.

MANAGING DIRECTOR

SALES MANAGER ACCOUNTS MANAGER

DELIVERY DELIVERY SALES SALES SALES SALES ASST. ASST. ASST. ASST.

WORKER WORKER

ACCOUNT ACCOUNT CASHIER

ASST. ASST.


SALES PERFORMANCE

Nov’02 Nov’03 Apr-Nov’02 Apr-Nov’03

Domestic

Sales

159753 201277 1141357 1293979

Exports 2112 3256 14871 23269

HERO HONDA does it again

Sells 2 lac plus units for the second consecutive month

New Models Consolidate Their market Leadership

New Delhi, December 01, 2003. . .

Repeating the Success of October, Hero Honda, the ‘World No.1’ two-

wheeler company, has sold over 2 lac motorcycle units a month, for two

consecutive months. Hero Honda sold 2,04,533 units in November,

registering a superb growth of 26%.

The success has been well spread across all major motorcycle segments.

The Splendor + and Passion Plus duo together consolidated the company’s

leadership in the executive segment. Launched in mid-april 2003, CD

Dawn cemented its leadership in the entry segment. CD Dawn is now the

second highest selling motorcycle model in the country, after the Hero

Honda Splendor.


Commenting on the record performance, Mr.Brijmohan Lall, Chairman,

Hero Honda Motors Ltd., said. “Our new products strategy, to identify and

satisfy emerging and latent needs, has shaped this success. On this

achievement, I would like to thank and congratulate our customers,

employees and all stakeholders for their continued faith in the brand – Hero

Honda.”

Speaking on the future outlook of the company, Mr.Pawan Munjal, M.D.,

Hero Honda Motors Ltd., said “Passion plus with its national appeal, has got

back the ‘style’ customer, thereby leading to an increase in our market share

in the executive segment. CD Dawn’s tremendous success, since launch,

continues strongly. Going forward, we would aim to further strengthen our

leadership in the entry and executive segments, and also augment our

product offering in the premium segment.” Following this incredible

performance, the company’s outlook for the year looks to be great”.

The company had sols 2,07,472 units in October 2003, as against 1,65,066

units sold during October 2002, registering a strong growth of 26%.

Hero Honda Motors Ltd.,

Year 2002-03 Sales Growth

New Delhi, April 1, 2003.

Hero Honda Motor Ltd., the country’s largest two wheeler maker finisher

the year 2002-03 with total motorcycle sales of 1,677,525 units a growth of

18% over last years sale of 1625302 motorcycles.


For the month of March 2003, the company posted sales of 115,722

motorcycle compared to 135464 in March 2002. As reported earlier, the

economic slowdown, as a consequent of drought in certain parts of the

country and low agricultural production, affected the demand for a whole lot

of durables including motorcycles. Lack of clarity on VAT issues also

impacted sales.

The company achieved a significant landmark in exceeding its sales turnover

target of rs.5000 crore during the year; up from Rs.4539.49 crore in the

previous year.


COMPANY MILESTONE

YEAR EVENT

2003 Winner of the Review 200-Asia’s Leading

Companies Award (3rd Rank amongst the top

10 Indian Companies)

Most Respected Company in Automobile

Sector by Business World.

Bike Maker of the year by overdrive

Magatine

2002 Bike Maker of the Year by Overdrive

Magazine

Winner of the Review 200-Asia’s Leading

Companies Award (4th Rank amongst top

Indian Companies)

Sponsored ‘India-England Women’s Cricket

Series’

Sponsored ‘Hero Honda Masters Golf

Championship’ Dawn model introduced.

Entrepreneur of the Year Award conferred


upon the Chairman, Mr.Brijmohan Lall by

Business Standard

Company of the Year for Corporate

Excellence by the Economic Times

Ambition model introduced

Giants International Award to the

Chairman, .Brijmohan Lall in the field of

Business & Industry.

Appointed Virender Sehwag, Mohammad

Kaif, Yuvraj Singh, Harbhajan Singh and

Zaheer Khan as Brand Ambassadors

Buisness Leadership Award conferred upon

the Chairman, Mr.Brijmohan Lall by Madras

Management Association Mr.Pawan Munjal,

Managing Director of Hero Honda Motors

Ltd., Appointed as the Chairman of Asian

PGA Tour Board of Directors

Sponsored ‘Second Indian Television

Academy Award’

2001 Bike Maker of the Year by Overdrive

Magazine

Winner of the Review 200 – Asia’s Leading

Companies Award (9th Rank amongst top 10


Indian Companies)

Passion model introduced

Achieved OM –One million production in

one single year

Joy Model launched

Entrepreneur of the Year Award conferred

upon the Chairman,

Mr.Brijmohan Lall by Ernst & Yojng

50,00,000th Bike produced

Three Leaves Award for Environment’ to

Hero Honda by Centre for Social &

Environment Green Rating Project.

Sponsored ‘21st Cinema Express Award’

Sponsored ‘India-England Test Series’

Sponsored ‘First Indian Television academy

Award’

2000 Sponsored ‘Hero Honda NKP Salve

Challenger Trophy’

Sponsored ‘Stardust Hero Honda Millennium

Honours Award’

Sponsored ‘Hero Honda Masters Golf

Championship’

Appointed Sourav Ganguly & Hrithik

Roashan as Brand Ambassadors

Environment Performance Award to Hero

Honda Dharuhera

Plant by Haryana State Pollution Control


Board

Environment Management System of

Gurgaon Plant certified

ISO-14001 by DNV Holland

4,000,000th motorcycle produced

Sponsored ‘20th Cinema Express Award’

Splendor declared World No.1 – largest

selling single two wheeler model

Passport Programme – Customer Relation

Programme launched

Sir Jehangir Ghandy Medal for Industrial

Peace conferred upon the Chairman,

Mr.Brijmohan Lll by XLRI, Jamshedpur.


PRODUCT PROFILE

Hero Honda currently is manufacturing 4 stroke motorcycles only. The

motorcycles are manufactured and assembled in Dharuhera and Gurgoan

plant. Hero Honda offers a wide range of motorcycles ranging from fuel

efficiency bikes to power & sleek looking bikes. Some of successful models

of Hero Honda are features in brief.

MAJESTIC MOBIKES in which the study is conducted, offers every variety

of the following bikes with all colours and specification prescribed by

HERO HONDA.


SPECIFICATIONS

Specifications CD-DAWNValue Nayae Zamane

Ki

Splendor +Designed to Excel

Passion PlusWhen Style Matter more

Engine Stroke air cooled, Single cylinder OHC

4-storke, OHC, single Cylinder, air-cooled

4-storke, OHC, single Cylinder, air-cooled

Displacement 97.2cc 97.2cc 97.2cc

Clutch Type Multi-plate wet type Multi-plate wet type Multi-plate wet type

Transmission 4-speed constant mesh 4-speed constant mesh 4-speed constant mesh

Final Drive Roller Chain Roller Chain Roller Chain

Ignition N/A Electronic Electronic CDI

Starting Kick starter Kick starter Kick starter

Frame Tubular double cradle Double cradle tubular type

Tubular Double cradle

Suspension (Front)

Telescopic hydraulic Telescopic hydraulic Frock

Telescopic hydraulic frock

Suspension (Rear)

Swing arm with hydraulic shock absorber

Swing arm with hydraulic dampers

Swing arm with 5 step Adjustable hydraulic dampers

Dimensions(L x W x H)

1980 x 720 x 1045mm 1950 x 720 x 1042 mm 1980 x 720 x 1060 mm

Wheel Base 1230 mm 1230 mm 1230 mm

Ground Clearance

150 mm 159 mm 160 mm

Dry Weight 108 kg 109 kg 116 kg

Tyres: Front/Rear

2.75 x 18-4PR, 2.75 x 18-6 PR

2.75” x 18”2.75” x 18”

2.75” x 18 x 4PR420/3 x 18-4/6PR

Max. Power 7.4 PS @ 8000 rpm 7.5 PS @ 8000 rpm 7.5 PS @ 8000 rpm

Max. Speed 85 kmph 85 kmph 85 kmph

Fuel Tank Capacity

10.5 Litres(1.8 Litres for reserve)

10.5 Litres(1.4 Litres for reserve)

12.8 Litres (1.1 Litres for reserve)

Brakes Drum Drum Drum


SPECIFICATIONS

Specifications New CBZMotorcycling Unplugged

Ambition 135 Karizma Jet Set Go

Engine 4-storke, Single Cylinder, Air-cooled, OHC

4-storke, Single Cylinder, Air-cooled, OHC

4-storke, Air-cooled, Single Cylinder, OHC

Displacement 156.8cc 135cc 223cc

Clutch Type Multi-plate wet type Multi-plate wet type Multi-plate wet type

Transmission 5-speed constant mesh 5-speed constant mesh 5-speed constant mesh

Final Drive Roller Chain Roller Chain Roller Chain

Ignition Electronic CDI Digital CDI System (AMI)*

AMI-Advanced Micro Processor Ignition System

Starting Kick Starter / Self-start (Option)

Kick Starter / Self starter (Option)

Kick Starter / Self starter

Frame Single cradle tubular Diamond type

Single Cradle Tubular Diamond type

Tubular Single Cradle Diamond type

Suspension (Front) Telescopic hydraulic Front Frock

Telescopic hydraulic Front Frock

Telescopic hydraulic Shock absorbers

Suspension (Rear) Swing arm with 5-step adjustable hydraulic dampers

Swing arm with 5-step Adjustable Hydraulic Shock absorber

Swing arm with 5-step adjustable type Hydraulic Shock absorber

Dimensions(L x W x H)

2100x755x1130 mm 20300x760x1130 mm 2125x755x1160 mm

Wheel Base 1335 mm 1285 mm 1355 mm

Ground Clearance 150 mm 150 mm 150 mm

Dry Weight 138 kg/142 kgs 126.5 kgs. /130 kgs. 150 kgs.

Tyres: Front/Rear 2.75x18-42/100/90x18-56 2.75x18-42 P/3.00”x18-6P 2.75x18-42P/100x90x18-56P

Max. Power 12.8 PS @ 8000 rpm (II BPH) 8.2 Kwat 8000 rpm

17 PS @ 7000 rpm

Max. Speed 0-60 Kmph 100 Kmph 125 Kmph

Fuel Tank Capacity

13 Litres(2.5 Litres for Reserve)

12.5 Litres(2.0 Litres for Reserve)

12.5 Litres(2.0 Litres for Reserve)

Brakes (Front) Hydraulic Disc type (240mm dia)(Rear) Drum (130mm dia)

(Front Disc) 130mm/240mm. (Rear Disc) 130 mm

Disc (276 mm dia)


Table No. 1

STATUS OF THE RESPONDENTS

STATUS NO. OF

RESPONDENTS

% OF

RESPONDENTS

NEW 73 73%

EXISTING 27 27%

TOTAL 100 100% Source: survey data.

INTERPRETATION: -

The statistics reveal that 73% were new purchases of Hero

Honda where 27% were existing customers.


Source : Table # 1


Table No. 2

OCCUPATION OF THE RESPONDENTS

OCCUPATION NO. OF

RESPONDENTS

% OF

RESPONDENTS

BUSINESS 47 47%

SERVICES 40 40%

STUDENT 13 13%

TOTAL 100 100%

Source: survey data.

INTERPRETATION: -

The above analysis shows that 47% of respondents were

businessman, 40% were service holders and 13% were student.


Source : Table # 2

Table No. 3


SOURCES OF AWARENESS OF HERO HONDA

SOURCE NO. OF RESPONDENTS

% OF RESPONDENTS

ADVERTISEMENT 38 38%

FRIENDS 24 24%

RELATIVES 10 10%

OTHERS 28 28%

TOTAL 100 100%Source: survey data.

INTERPRETATION: -

This statistic reveal that greater part of respondents have got the

information from T.V and advertisement other than friends & relatives

about an important role in influencing them to opt for.

This reveals that Hero Honda is able to influence its consumer’s base to tell

other about their product.


Source : Table # 3

Table No. 4


SATISFACTION ABOUT SALESMANSHIP

RATING NO. OF RESPONDENTS

% OF RESPONDENTS

VERY GOOD 37 37%

GOOD 43 43%

FAIR 20 20%

POOR 0 0%

TOTAL 100 100%


INTERPRETATION: -

The above table shows that 37% of the respondents of Hero Honda

have marked Sales Executives efficiency as very good 43% of

respondents have marked good for Sales Executives and only 20%

of respondents have marked fair for Sales executives.

This shows that Hero Honda possess a good sales force satisfy the

customers.


Source : Table # 4

Table No. 5


SATISFACTION ABOUT PRODUCT BRIEFING

SATISFACTION NO. OF RESPONDENTS

% OF RESPONDENTS

YES 92 92%

NO 08 08%

TOTAL 100 100%


INTERPRETATION: -

The statistic reveal that the product profile presented by the

Salesman of Hero Honda is truly trustworthy with a majority of

92% of respondents showing satisfaction towards products

briefing.


Source : Table # 5


Table No. 6

PERCEPTION OF SHOWROOM AMBIENCE

PERCEPTION NO. OF RESPONDENTS

% OF RESPONDENTS

VERY GOOD 43 43%

GOOD 57 57%

POOR 0 0%

TOTAL 100 100%


INTERPRETATION: -

Today’s consumers oriented market has given rise to number of

aesthetic factors, which has to be taken into consideration by a

marketer. This is very much evident as shown in statistic that 43%

and 57% respondents have recognized the ambience of show room

as very good and good respectively.


Source : Table # 6


Table No. 7

MODE OF PURCHASE

MODE OF PURCHASE

NO, OF RESPONDENTS

% OF RESPONDENTS

FINANCE 67 67%

CASH 33 33%

TOTAL 100 100%


INTERPRETATION: -

The study indicates that the mode of purchase of Hero Honda by the

customers was mainly through Finance scheme with a majority of 66%

and 34% of the customer have bought their vehicle through cash

payment.


Source : Table # 7


Table No. 8

CONSUMER PERCEPTION TOWARDS

FINANCE SCHEME

FINANCE

SCHEME

NO. OF

RESPONDENTS

%OF

RESPONDENTS

REASONABLE 88 88%

UNREASONABLE 12 12%

TOTAL 100 100%


INTERPRETATION: -

The statistics reveals that all the finance scheme that is offered by

the dealer is perceived reasonable to maximum consumer with a

majority of 88%.


Source : Table # 8


Table No. 9

TEST RIDE PROCESS

SATISFIED NO. OF

RESPONDENTS

% OF

RESPONDENT

YES 88 88%

NO 12 12%


INTERPRETATION: -

The statistic reveals that almost all the customers are offered for a test

drive and were satisfied with the process. The test ride is offered

within the limits of the showroom and a service employee is sent

with the customer.


Source : Table # 9


Table No. 10

PERCEPTION TOWARDS SALES

PROCESS

PERCEPTION NO. OF

RESPONDENTS

% OF

RESPONDENTS

VERYGOOD 33 33%

GOOD 56 56%

FAIR 11 11%

POOR 00 00%


INTERPRETATION: -

The study reveals that the consumer perceives the dealers sales process

as very good and good with the percentage being 33% and 56%

respectively.


Source : Table # 10


SERVICE & PRODUCT


Table No.11

SATISFACTION ABOUT AFTER SALES

SERVICE

SATISFIED NO. OF

RESPONDENTS

% OF

RESPONDENTS

YES 93 93%

NO 07 07%


INTERPRETATION: -

The statistic indicates that the greater part of respondents are

satisfied about sales service with a majority of 93%.


Source : Table # 11


Table No. 12

PERCEPTION OF RESPONDENTS

REGARDING COMPLAINT

RECOGNITION

PERCEPTION NO. OF

RESPONDENTS

% OF

RESPONDENTS

VERYGOOD 36 36%

GOOD 53 53%

FAIR 11 11%

POOR 0 0%


INTERPRETATION: -

The table reveals that the complaints of consumer after sales were duly

attended by the sales force. This shall be of competitive tool to be used to

build up the brand image.


Source : Table # 12


Table No. 13


HERO HONDA PERFORMANCE

OPINION NO. OF

RESPONDENTS

% OF

RESPONDENTS

VERY

GOOD

27 27%

GOOD 56 56%

FAIR 17 17%

POOR 0 0%


INTERPRETATION: -

As per the above table the respondents feel that Hero Honda’s

performance is very good revealed by their personal experience of

using the bike. This shows that Hero Honda has very good market

potential through its performance.


Source : Table # 13


Table No. 14


PERSONNEL EFFECTIVENESS

PERCEPTIO

N

NO. OF

RESPONDENTS

% OF

RESPONDENTS

VERY GOOD 22 22%

GOOD 64 64%

FAIR 14 14%

POOR 0 0%

TOTAL 100 100% Source: survey data.

INTERPRETATION: -

The study indicates that most of the customer of Hero Honda are

satisfied with the service. Personnel’s attitude as they perceived their

performance very good and good with a percentage of 22% and 64%

respectively.


Source : Table # 14


Table No. 15

CONSUMER EXPECTION FROM HERO

HONDA

SPECIFICATION NO. OF

RESPONDENTS

% OF

RESPONDENTS

MORE POWER 13 13%

STYLE 17 17%

PRICE REDUCTION 26 26%

MORE COLOURS 23 23%

FREE ACCESSORIES 21 21%


INTERPRETATION: -

From the study its revealed that the respondents excepts price cut from Hero

Honda with the percentage being 26%. This is followed by an expectation of

more colors and free accessories with 23% and 21% of the respondents opting

for them respectively.


Source : Table # 15


TABLE NO. 16


DEALER EFFECTIVENESS AND

RECOMMENDATION

EFFECTIVENESS NO. OF

RESPONDENTS

% OF

RESPONDENTS

YES 93 93%

NO 07 07%


INTERPRETATION: -

The statistic reveals that 93% of the consumer of Hero Honda are satisfied

with the service of dealer and its effectiveness and recommended it to their

relatives and friends.


Source : Table # 16


Table No. 17

RESPONDENTS OPINION ON THE

AVALIBILITY OF THE SPARE PART OF

THE HERO HONDA

AVAILABILITY NO. OF

RESPONDENTS

% OF

RESPONDENTS

VERY GOOD 13 13%

GOOD 27 27%

FAIR 41 41%

POOR 19 19%



INTERPRETATION: -

The above statistic reveals that majority of the respondents are

quite pleased and satisfied with the availability of spare parts of

Hero Honda while 19% of respondents feel that the company

should work on this front.

Source : Table # 17


Table No. 18

RESPONDENTS PREFERENCE

TOWARDS VEHICLE SERVICE

RESPONSE NO. OF

RESPONDENTS

% OF

RESPONDENTS

DEALERSHIP 33 33%

AUTHORIZED

SERVICE

CENTRE

50 50%

LOCAL

MECHANIC

17 17%



INTERPRETATION: -

The survey reveals that majority of the respondents trust authorized

service centres while coming for servicing. But quite a few

respondents (33%) also favor dealership for the same.

Source : Table # 18


Table No. 19

CONSUMER PREFERANCE FOR HERO HONDA BRANDS

BRANDS NO. OF

RESPONDENTS

% OF

RESPONDENTS

SLPENDER 18 18%

SPLENDER+ 46 46%

PASSION

PLUS

10 10%

CD DAWN 10 10%

KARIZMA 4 4%

C.B.Z 0 0%

AMBITION135 0 0%



INTERPRETATION: -

The statistic reveals that Hero Honda’s Splender+ is the first preference

of the customers with 64% of respondents opting for it followed by

percentages being 22% , 10% , 4% respectively.

Source : Table # 19


Table No. 20

CONSUMER CHOICE OF ALTERNATIVE

BRAND OF TWO WHEELER

COMPANY NO. OF

RESPONDENTS

% OF

RESPONDENTS

BAJAJ 52 52%

T.V.S 28 28%

YAMAHA 20 20%


INTERPRETATION: -

The statistic reveals that the respondents would have purchased

Bajaj in absence of Hero Honda as their first option, where as

T.V.S and Yamaha as their second and their option.


Source : Table # 20


Table No. 21

REASON FOR PURCHASING HERO

HONDA

REASON NO. OF

RESPONDENTS

% OF

RESPONDENTS

PERFORMANCE 48 48%

STYLE 13 13%

PRICE 17 17%

BRAND IMAGE 22 22%


INTERPRETATION: -

The study reveals that Hero Honda is chosen by respondents

mainly due to its performance & brand image.


Source : Table # 21


FINDINGS

The old prophecy that once a customer is a customer has become a

myth in the present day competitive world. Brand image is no longer works

a magic with the consumer. So to hold the customer to the brand and attract

new consumers the company must produce products that are efficient and

competent along with its marketing activities that help in sales of the

product.

After analyzing the response of the consumer interviewing and observation

The following were found during the study: -

1. HERO HONDA motorcycles are first in demand in two wheeler

markets as per the information obtained from the questionnaire and

general observation.

2. Major part of the HERO HONDA splendor users are business people

and next are service, found from the questionnaire.

3. From analysis and interpretation it is found that Hero Honda splendor

is mainly chosen for its performance and brand image.

4. Major part of the consumer have chosen finance scheme offered by

the dealer for purchasing the bike.


5. HERO HONDA is the only two wheeler company in India which has

given these vast ranges of motorcycles to the market, obtained form

general observation during the study.

6. HERO HONDA has plans of letting some more new models in future

as per the information it was found that splendor is the worlds largest

selling bike.

7. Majority of the customers were aware of HERO HONDA through

T.V. & newspapers advertisement. Other than this there friends &

Relatives also place an important role in influencing the customer.

8. Majority of respondent are significantly influenced by their friends in

purchase decision, followed by the influence of family and dealers

while purchase.

9. Respondent are completely satisfied by the mileage of HERO

HONDA bike.

10.Customers are satisfied about HERO HONDA bike because of easy

availability of spares parts of their bike.

11.Majority of customers get their vehicle service a Authorized service

units and authorized dealers and very few services on to local services

centers.


12.It has been observed during the course of survey that the sales remain

low particularly on Tuesday & Saturdays owing to superstitions in the

mind of consumers.

13. From the survey its revealed that Bajaj motors is the foremost

competitor of Hero Honda.


CONCLUSION

HERO HONDA is one of the leading two wheeler producer in the globe. It

holds a important place in the minds of consumer by providing efficient

service and better products. Product efficiency and innovations are the

method they live up today. Their engineering is comprehensive.

Consumer perception towards HERO HONDA motorcycles is very good. It

has created a very good brand image for it self through providing low

maintenance, fuel efficient, sleek looking models along with efficient after

sales service. It has attracted every class customers.

In today’s competitive business environment, it is only due to the positive

perception of the consumer that the company is being able to compete in the

market with its other competitors.


RECOMMENDATIONS & SUGGESTIONS

1. Most of the customers are of the view that the price tag of HERO

HONDA bikes as compared to other similar bikes is a bit higher.

Hence the price of the bikes especially the power range bikes like

Hero Honda AMBITION, CBZ, KARIAMA could be reduced

2. CD-Dawn, Splendor+ and Passion Plus, could be added with more

power, mileage and given with more colours.

3. The customers should be provided with enough information

regarding effective maintenance of the bike so that the consumers

gets the best from the bike.

4. HERO HONDA has to identify those dealers who are facing the

problem with sales and take adequate measures to keep up the so

far created brand image.

5. Hero Honda has to use more promotional techniques to improve

the sales in future. It has to conduct more road shows/public

display by which the consumer is given with much detailed

information about the product and more public awareness is

created.


6. Many existing customer have states that some Hero Honda vehicle

(CD-Dawn , Splendor) have not a good road grip. Hence it is

suggested that those vehicle must re-engineer for better road grip.

7. Many existing customers have stated that the splendor+ be

provided with self starter and disc brakes. So the company should

focus on those factors.


QUESTIONNAIRE

Dear customer, First and foremost accept my congratulation on being the

proud owner of a HERO HONDA motor cycle. I heartily welcome you to the family of HERO HONDA users.

I , Kajal Roy final year B.B.M. student of the Oxford College Of Business Management doing a project work on “Consumer Perception Towards HERO HONDA With Reference To Sales Process, Service And Product” for my academic purpose. I request you to kindly fill this questionnaire & oblige.

Thanking you,

Sincerely yours,For MAJESTIC MOBIKES (P) LTD.

1.Your name : -

2.Occupation :- Business service Student

3.Are you an existing customer or a new customer of Majestic Mobikes?

Existing New

4.How did you come to know about the Dealership?

Friends Advertising Relatives Others

5.What is your opinion about sales executive of HERO HONDA?

Very good Good Fair Poor


6.Are you satisfied with product briefing by the sales executive?

Yes No

7.What is your opinion about showroom ambience?

Very good Good Poor

8.Did you buy your motorcycle through finance or cash?

Finance Cash

9.If finance, how do you find the finance schemes?

Reasonable Un-reasonable

10.Did you take test ride?

Yes No

11.If yes, how did you feel about it ?

Satisfied Dissatisfied

12.What is your opinion about overall sales process ?

Very good Good

Fair Poor

13.Are you satisfied with the after sales service provided by Dealer ?

Yes No


14.What is your opinion about the complaint recognition by service personnel ?

Very good Good

Fair Poor

15. What is your opinion about the performance of HERO HONDA bikes ?

Very good Good

Fair Poor

16. What do you feel regarding the availability of spare parts of the HERO HONDA ?

Very good Good

Fair Poor

17.What is your preference towards servicing of your bike?

Dealership Authorised service centre Local mechanic

18. What is your opinion about the effectiveness of sales personnel?

Very good Good

Fair Poor

19.What are the specification (Quality, attributes, etc.) do you expect from HERO HONDA ?

More power Style Price reduction

More colors Free accessories


20.Which motorcycle of HERO HONDA you have purchased?

Splendor+ Passion+

CD-Dawn C.B.Z

Ambition 135 Karizma

21.Which company would you prefer other than HERO HONDA?

T.V.S Bajaj Yamaha

22.Why did you choose HERO HONDA motorcycle?

Performance Style

Price Brand Image


BIBLIOGRAPHY

TEXTBOOKS REFERRED

Consumer Behavior : Leon. G. Shiffman

Essentials Of Marketing : P.N. Reddy, Sherlakar S.A.

Principle of Marketing : Philip Kotler

MAGAZINES

Business Today

Business World

Business standard

NEWSPAPER REFERRED

Economics Times

Business Times

The Times Of India

WEB SITE REFERRED

www.herohonda.com

www.herogroup.com

www.autoindia.com

www.google.com .


http://www.google.com/

http://www.autoindia.com/

http://www.herogroup.com/

http://www.herohonda.com/

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