PREFACE

It is wonderful opportunity provided by RAJ SCHOOL OF MANAGEMANT

SCIENCE BABATPUR, VARANASI to interact with the industrial surface during
the academic session of MBA, IIITH SEM. I feel very enthusiastic about the
compulsory activity provided by academic plot in the form of summer training
report. This research has provided an opportunity to understand the
theoretical concepts and to see that how these concepts are applicable in
practical life .Working at MARKETING AND SALES TO HERO MOTORS was a
nice opportunity given to us which made us understand the working of the
HERO which is very necessary for all the people. It was a great experience for
me to work.

SWAMI DAYAL DUBEY

MBA 3RD SEM

ACKNOWLEDGEMENT
Apart from my own efforts, the success of any project depends largely on the encouragement and
guidelines of many others. I take this opportunity to express my gratitude to the people who have
been instrumental in the successful completion of this project.
I would like to thank my project faculty guide, PRATIBHA for his constant follow-up,
encouragement and guidance to complete this project within the allotted time frame
I would like to thank, for giving me a chance to gain an exposure in the corporate world. I would
also like to thank for their kind cooperation and providing me with the academic support.
Last but not the least; I would like to thank my Almighty for blessing me and making this
project a success.

DECLARATION

I hereby declare that the Dissertation project entitled MARKETING AND SALES TO HERO
MOTORS submitted by me as a partial fulfillment for the award of Masters of Business
Administration to RAJ SMS, VARANASI is original and genuine work carried out by me.

Date:
Place:

EXECUTIVE SUMMARY
Marketing starts with identifying the needs of customers and ends in satisfying those wants. The
goal of marketing is to attract new customers by promising superior value and to keep current
customers by delivering satisfaction based on their preferences retaining them.
As the customers are regarded as the superiors in todays market, the level of satisfaction and
their preferences should be keenly studied.
The two-wheeler industry has been expanding rapidly.

Gone are the days when possessing a

two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity.

Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas the
bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles.
Not only this, this industry has also customers ranging from all demographic segments. It has
been common sights that even school going children are driving two-wheelers. The women
customers are also increasing due to increase in women literacy and employment.
Getting a new customer is difficult, than retaining a current customer is a more difficult
one and not only that it is estimated that the cost of attracting a new customer is five times the
cost of retaining current customer. It requires a great deal of effort to induce satisfied customer
to switch away from their current preference. Thus, customer satisfaction is been given top
priority in todays competitive world.
Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the
customers satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a

detailed study of customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken

Chapter No

Title

P.no.

Introduction

6-9

Review of Literature

10-36

Company profile

37-55

Research Methodology

56-57

Data collection

58-72

Data Analysis and interpretation

73-80

Findings and Discussions

81

Suggestions and Recommendations

82

Conclusion

83

10

Quesionnaire

84-85

11

References

86

12

Bibliography

87

TABLE OF CONTENT
5

1. INTRODUCTION

The Dissertation is all about measuring the customer satisfaction in Hero Motors. Every
company is trying to satisfy its customers. The emphasis is on ways of retaining customers, then
on attracting new customers. It is easy to attract new customers then to retain old customers. So,
companies are trying to focus on this aspect of customers satisfaction.
The sale of a product does not end with the sale transaction but it is the point at which
the original marketing concept starts. The marketer has to see that whether the customer satisfied
with that particular product/service or not. The post purchase behavior is important for a
marketer. If there is any cognitive dissonance in the minds of the customers then that is enough
to lose a customer. Keeping this in mind the companies are giving more importance to customer
satisfaction.
This project work has been done to find out whether a customer is satisfied or
dissatisfied, also to measure the level of the customer satisfaction and provide this feedback to
the company. The first phase of the project involves the collection of information from the
customers for interpreting the characteristics based on which the customer feels satisfied or
dissatisfied. This information is collected by preparing a structured questionnaire. The
questionnaire consists of both open-ended and closed-ended questions. The questionnaire is
designed in such a way that a customer feels convenient to answer.
The collated information through the questionnaire is analyzed and presented in a
statistical form. The findings are listed and suggestions to solve problems faced have been given
in the suggestion part.

INTRODUCTION TO CUSTOMER SATISFACTION

Whether the buyer is satisfied after purchase depends on the offers performance in relation to
the buyer expectation. In general satisfaction are a persons feelings of pleasure or
disappointment resulting from comparing a products perceived performance relation to his/her
expectations. If the performance falls short of expectation, the customer is dissatisfied. If the
performance matches the expectation customer is satisfied. If the performance exceeds the
expectation the customer is highly satisfied.
Customer satisfaction cannot be very difficult. After all you either satisfied with
the services you receive or you are not. If you dont you are not. If it is that easy, then obtaining
people's opinion about how satisfied they are with relatively straight forward matter- or is it?
Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived
by customers as important as the primary product or service your organization offers. It looks at
what is involved from 3 different angles, the first is from the view of an organization wishing to
understand, and measures, how satisfied its customer are with the products and services they
receive from it. The second is from the perspective of a research agency that has been asked to
obtain feedback from customers and about their experiences when dealing with companies.
Finally it considers the issue from the perspective of consumers who participate in surveys,
including both business customers and members of general public
MEANING OF CUSTOMER SATISFICATION
Customer satisfaction is a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and part of the four prospective of balanced score card.
In a competitive market place were businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy customer satisfaction drives successful private sector business.

High performing businesses have developed principles and strategies for achieving
customer satisfaction. This paper presents a framework or set of ideas for using customer
satisfaction principles and strategies to improve the quality responsiveness, and possibility of
public sector privately provided services in vulnerable communities
The framework suggested that resident who live in tough neighborhoods can be supported
through customer satisfaction strategies to become empowered individuals who informed
perspectives influence decisions about what, how, when, and where services are available to
them.
Customer satisfaction is the customers response to the evaluation of the perceived discrepancy
between prior expectation and the actual performance of the product as perceived after its
consumption.
DEFINITION
Cocotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a
feeling developed from an evaluation of the experience."
HERE, the timing of satisfaction response is driving consumption.
BUT there is general agreement with kotler (2003) that "customer satisfaction is a
person's feeling of pleasure or disappointment resulting from comparing a products perceived
performance in relation to his or her expectation."

In short customer satisfaction is "The

provision of goods or services which fulfill the customer expectation in terms of quality and
service, in relation to price paid."

IMPORTANCE OF CUSTOMER SATISFACTION

It costs at least 7 times more to source a new customer than it does to retain existing one
a 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied' customer will tell 14-15
people.

Companies can boost profits anywhere from 25% to 125% by retaining a mere 5% more
of their exciting customers.
8

Totally satisfied customers were 6 times more likely to use that services and commend it

than ' satisfied' customers.

Customers who have a bad experience with you and do not complain are only 37% likely

to still do business with you.

Customers who have an opportunity to complain and the complaint is achieved are 95%
likely to still do business with you.

FACTORS OF CUSTOMER SATISFACTION

1. Service of quality
2. reliability of service
3. knowledge of the staff
4. Being kept informed of progress
5. The way service kept its promises
6. The way the service handled any problem Friendliness of staff
7. How sympathetic staff were to your needs
8. Speed of enquiries
9. Number of time had to contact the service.

2. REVIEW OF LITERATURE
Planning for the future to achieve the long-term objective is integral to the
survival and growth of every business. Strategic planning today has to take into cognizance the
rapid changes in technology, increased competitiveness and the turbulent business environment,
also with the world becoming one big global village.
Strategy covers every aspect of business from business reengineering, new business
development, product development and brand positioning to advertisements promotional
campaigns, media and publicity. It is a game of innovation.
In fact, marketing people are involved in marketing 10 types of entities; goods, services,
experience, events, persons, places, properties, organizations, information and ideas. Marketing
management is the art and science of choosing target markets and getting, keeping and growing
customers through creating, delivering and communicating superior customer value.
India is second largest manufacturer and producer 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.
Indian two-wheelers industry made small beginning in early 50s when Automobile
products of India (API) started manufacturing scooter in India. Hero was established on 13 th of
April 1984. The Indian two wheelers Industry can be broadly classified as scooter, motorcycles
and mopeds/scooters. In last six years domestic two-wheelers has seen structural charges. This
can be seen from the change in composition of two wheeler sales, where the motorcycles have
gained market share from the scooter and moped or scooters segments.

10

The consumer is now faced with proliferation of brand models. Getting new customers as well
as retaining them is an important task of manufacturers. So service after sales is very important.
A satisfied customer brings in more name and goodwill to the company, which is why customer
satisfaction is given more importance in todays competitive world. A study on this aspect with
Hero two-wheelers at Hero MotoCorp Ltd was made.

Marketing mix of Hero Motors:

Product:
Hero motors are known for its quality and advanced technology, satisfying the needs of the
customers both in urban and rural areas.
Place:
Hero Motors concentrates not only on urban areas, it targets rural areas as well. It has its
showrooms in almost every town in the country, making the two wheelers available everywhere
in the country.
Price:
The pricing strategy of the Hero two wheelers is economical and value for money, they were
very reasonably priced.
Promotion:
The promotional strategy of Hero Motors is sponsoring lot of national and international events
and endorsed by the well knows personalities of the country.
They sponsor the events like cricket world cups.

11

Segmentation, Targeting and Positioning of Hero Moto Corp

1. Introduction to Two Wheeler Bikes
A motorcycle (also called a motorbike, bike) is a two wheeled motor vehicle. Motorcycles vary
considerably depending on the task they are designed for, such as long distance travel,
navigating congested

urban

traffic, cruising, sport and racing,

or off-road conditions.

Motorcycles are one of the most affordable forms of motorized transport in many parts of the
world and, for most of the world's population, they are also the most common type of motor
vehicle. There are around 200 million motorcycles (including mopeds, motor scooters, motorized
bicycles, and other powered two and three-wheelers) in use worldwide, or about 33 motorcycles
per 1000 people.
India, is the second largest producer of two-wheelers in the world. In the last few years, the
Indian two-wheeler industry has seen spectacular growth. The country stands next to China and
Japan in terms of production and sales respectively. Majority of Indians, especially the
youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler
industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite
among the youth generation, as they help in easy commutation. The two-wheeler market in India
is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The
motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths
of the total exports in the two wheeler automobile industry are made in the motorcycle segment.
Segmentation, Targeting and Positioning Related to Bikes
A market segment consists of a group of customers who share a similar set of needs and wants.
The major segmentation variablesgeographic, demographic, psychographic, and behavioral
segmentation.
12

Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)

Demographic Segmentation (age, family size, gender, income, family life cycle,
occupation, religion)

Psychographic segmentation (lifestyle, personality)

Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status,
attitude towards product)

For bikes, demographic segmentation plays an important role. Bikes cater to a particular age
group, gender and/or income group. Depending upon the segment, the features of the bike varies.
Hence, marketers should have a good knowledge about what features to add on as per the
segment they want to cater to.
Market Targeting
Once the firm has identified its market-segment opportunities, it has to decide how many and
which ones to target. Marketers are increasingly combining several variables in an effort to
identify smaller, better-defined target groups. In evaluating different market segments, the firm
must look at two factors: the segment's overall attractiveness and the company's objectives and
resources. After evaluating different segments, the company can consider five patterns of target
market selection.

Single segment concentration: Through concentrated marketing, the firm gains a strong
knowledge of the segment's needs and achieves a strong market presence.

Selective specialization: A firm selects a number of segments, each objectively attractive

and appropriate.

Product specialization: The firm makes a certain product that it sells to several different
market segments.

Market specialization: The firm concentrates on serving many needs of a particular

customer group.

Full market coverage: The firm attempts to serve all customer groups with all the
products they might need.

13

Manufacturers of bikes need to be very precise while selecting their target market. They should
understand the consumers demand and then accordingly place their product. The products
features should satisfy its target customers and should be at per with the value it promises to its
target customers.

Market Positioning
Positioning is the act of designing companys offering and image to occupy a distinctive place in
the mind of a target market. The end result of positioning is value proposition, a cogent reason
why the target market should buy the product. [4]
Positioning in market is very important as well as difficult. Its making the consumers aware of
your product. Each bike must have a unique selling point which needs to be well portrayed in
consumers mind so that he has an additional choice in his mind.
Competition Bikes Brands
The brands that I have chosen are:
Hero MotoCorp Ltd.

Yamaha Motor Company Limited

Bajaj Auto Ltd.

TVS Motor Company

Harley Davidson

MARKETING STRATEGIES OF HERO

o PRODUCT RELATED STRATEGIES OF HERO

Product Range and New Models:

The Company's product range includes "Splendor" which is the largest selling motorcycle brand
in the world with over 6.9 lacs vehicles sold in 2000-01. A cumulative over 4 million customers

14

are the real foundation of the company's strength. The total shall soon cross the 5 million mark.
Its volumes have been growing at a strong pace of 40% p.a. over the last five years.

The Company launched a new 100 cc model "Passion" in January 2001. The motorcycle is
focused on style and contemporary design, compared to the Company's earlier motorcycles that
were focused on utility and/or style. "Passion" has received an excellent response from the
market and has established itself well, with sales reaching a level of 19000 units in March 2001,
within just three months of its launch.
In April 2001, another 100 cc model "Joy" was launched successfully. Its focus is on better
styling and improved riding comfort.
Hero Honda launches cheapest bike to stall Bajaj Auto19.03 IST 16th Apr 2003 By India
Express Bureau
In an attempt to beat competition from its rival Bajaj Auto, Hero Honda Motors launched its
cheapest 100cc motorbike yet on Wednesday. The motorbike maker, in which India's Munjal
family and Japan's Honda Motor Co each hold 26 per cent stakes, said the new model, CDDawn, would carry a showroom price of Rs 31,899 in Delhi. The company expects to sell 7,0008,000 units of the bike in April and hopes sales will touch 20, 000 a month in six months. Hero
Honda, which accounts for 45 per cent share of the domestic market, has faced slowing demand
and cutthroat competition after two consecutive years of 30 per cent-plus growth in the world's
biggest motorcycle market. But the firm has forecast at least 10 per cent growth in sales volume
in the current financial year to March 2004. Its sales in the past year to March grew 17.7 per cent
to 1.68 million bikes.

15

Different models of Hero 4-strokes bikes:

Presenting CD deluxe, the stylish, true value 100 cc motorcycle from Hero Honda.
Encompassing the legendary Hero Honda values of fuel efficiency, economy and rock solid
dependability.

Engine

4-Stroke OHC, Single Cylinder, Air Cooled

Bore X Stroke

50 X 49.5 mm

Displacement

97.2 cc

Compression Ratio

8.8 : 1

Max Power

5.44 Kw (7.4 PS) @ 8000rpm

Torque

0.79 Kgm @ 5000 rpm

Clutch

Multi Plate Wet Type

16

Transmission

4-Speed Constant Mesh

Final Drive

Roller Chain

Ignition

Capacitor Discharge Ignition

Starting

Kick Start

Frame

Tubular Double Cradle

Suspension

Front: Telescopic Hydraulic Fork

Rear: Swing Arm with Hydraulic Shock Absorbers

Dimensions (LXWXH)

1970 X 720 X 1045 mm

Wheel Base

1230 mm

Ground Clearance

159 mm

Kerb Weight

108 Kg

Tyres

Front: 2.75 X 18 - 4PR

Rear: 2.75 X 18 - 6PR

Brakes

Front: Internal Expanding Shoe Type - 130 mm Dia

Rear: Internal Expanding Shoe Type - 110 mm Dia

17

Fuel Tank Capacity

10.5 Ltrs

Head Light

Rectangular Multi Focal Reflector 35

The world's best-selling motorcycle just got better. The Splendor+, a bike that will stop you right
in your tracks. Both by its looks and performance. Needless to add, owning a Splendor+ means a
lot of other things too. Like getting admiring looks. Or the pride of riding a motorcycle that
meets the pollution control standards of this decade. That's the Splendor+. The new face of trust.

18

Engine

4-stroke, single cylinder lair-cooled, OHC

Displacement

97.2.cc

Transmission

4-speed constant mesh

Ignition

Electronic

Head light

12V 35/35W multi-reflector with halogen lamp

Frame

Tubular double cradle type

Suspension (front)

Telescopic hydraulic fork

Suspension (rear)

Hydraulic spring loaded type with both side

action

Wheelbase

1230 mm

Ground clearance

159 mm

Kerb weight

109 kgs

Tyre (front)

2.75*18-4 PR

Tyre (rear)

2.75*18-6 PR

Type of brake (front)

Drum type (130 mm diameter)

Optional

Disc type (240 mm diameter)

19

Type of brake (rear)

Drum type (110mm diameter)

Max power

7.5PS @ 8000 rpm / 5.5 KW @ 8000rpm

Max speed

85 kmph

Fuel tank capacity

10.5 litres (reserve 1.4 litres)

Engine
Bore X Stroke
Displacement
Compression Ratio
Max Power
Torque
Max Speed

4-Stroke OHC, Single Cylinder, Air Cooled

52.4 X 57.8 mm
124.7 cc
9.1: 1
6.72 Kw (9 BHP) @ 7000 rpm
10.35 Nm @ 4000 rpm
90 Kmph
20

Clutch
Final Drive
Ignition
Starting
Frame
Suspension
Dimensions (LXWXH)
Wheel Base
Ground Clearance
Kerb Weight
Tyres
Brakes

Fuel Tank Capacity

Head Light

4 - Speed Constant Mesh

Roller Chain
Digital - CDI Ignition (AMI)
Advanced Micro Processor Ignition system
Kick Start
Self Start (Optional)
Tubular Double Cradle
Front : Telescopic Hydraulic Fork
Rear : Swing Arm with Hydraulic Shock Absorbers
1995 X 735 X 1095 mm
1265 mm
150 mm
117 Kg (Kick Version)
121 Kg (Self Version)
Front : 2.75 X 18 - 4 PR / 42P
Rear : 2.75 X 18 - 6 PR / 48P
Front Drum Type : Internal Expanding Type - 130 mm Dia
Front Disc Type : Hydraulic Disc Type - 215 mm Dia
(Optional
Rear: Internal Expanding Type - 130 mm Dia
12 Ltrs. (Min)
12V - 35W Multi Reflector Halogen Bulb - AC Type

New two-tone body colours PLUS Body colour rear view mirrors PLUS Aluminum die cast rear
grip PLUS Heat protector on the muffler. All this and much more to make the biker and his bike
stay married for eve.
Engine
Displacement
Maximum Power
Gear Box
Clutch
Max. Speed

4-stroke, Single Cylinder, Air - Cooled OHC

97.2 cc
7.5 Ps at 8000 rpm
4 Speed Constant Mesh
Multi-Plate Wet Type
85 Kmph.
21

Frame
Suspension (Front)
Suspension (Rear )
Tyre Size (Front )
Tyre Size (Rear )
Brakes (Front)
Brakes (Rear)
Final Drive
Battery
Ignition
Starting
Wheelbase
Ground Clearance
Length
Width
Height
Kerb Weight
Fuel Tank Capacity
Head light

Tubular Double Cradle

Telescopic Hydraulic Fork
Swing Arm with 5 step adjustable hydraulic damper.
2.75 * 18- 4 PR /42 P
3.00*18-4/6 PR
Internal
Expanding
Shoes
Type
(130mm)/ Hydraulic Disc Type (Optional)
Internal Expanding Shoes Type (130 mm)
Roller Chain
12 V-2.5 Ah
Electronic CDI
Kick Starter
1235 mm
160mm
1980 mm
720 mm
1060 mm
116 kgs.
12.8 litres (Reserve 1.1 litres)
Halogen Bulb 35 W / 35 W

The legend refreshedwith all new body language. The original spirit of CBZ, now with a cool,
new look. A wonder bike that can take on the winds. And like you, it runs on passion. Rev up and
flaunt your style.
CBZ
Engine

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

Displacement

156.8cc

Clutch Type

Manual

22

Clutch Primary

Clutch Secondary

Multi-plate wet

Transmission

5-speed constant mesh

Final Drive

Roller chain

Ignition

Electronic

Starting

Kick starter

Frame

Tubular single cradle

Suspension (Front )

Telescopic hydraulic fork

Suspension (Rear )

Swing arm with hydraulic damper- 5-step adjustment

Dimensions (L*W*H)

2100*755*1130mm

Wheel Base

1335mm

Ground Clearance

160mm

Kerb Weight

138 kg

Tyres:Front/Rear

2.75*18-42P/100/90*18-56P

Max. Power

12.8 PS@8000 rpm

23

Max.Speed

100 kmph

Fuel Tank Capacity

12.5 1tr(2.5 ltr reserve)

o PLACE STRATEGY OF HERO HONDA

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record
worldwide. Hero Honda is at present the largest-selling Indian motorcycle and the most fuelefficient in its category - the outcome of Hero Group's foresight and another classic example of
how the Group strives to provide the customer with excellence and satisfaction.
Hero Honda became the first company in the country to introduce four-stroke motorcycles and
set the standards for fuel efficiency, pollution control and quality. It has a production capacity of
1.2 million motorcycles, which shall be enhanced to 1.5 million motorcycles in the coming years.
It has an excellent distribution and service network spread throughout the country. Hero Honda is
the market leader in motorcycles, with sales of over a million motorcycles and a strong market
share of 47% during 2000-01.
This is proved by the company's sales over the years:
YEAR
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09

SALES
43,000 units
96,200 units
5,30,600 units
7,61,210 units
10,29,555 units
14,25,195 units
16,77,537 units
24

2009-10

18,23,234 units

As economies open up, are Asian enterprises ready for the global battle for export markets and
investment?
Hero Honda sales decline 1.2 pc
Our Bureau
NEW DELHI, May 1
HERO Honda, the country's largest motorcycle manufacturer, saw its sales decline by 1.2 per
cent to 1,34,318 units in April 2003 from 1,35,961 units in the same month last year.
According to industry sources, sales of the company could have been affected by sluggish rural
demand combined with the 10-day trucker's strike affecting production as well as distribution of
products in April.
The company saw a growth of 16.06 per cent in sales volume during April compared to March.
Meanwhile, Hero Honda is planning to launch new 200 plus cc motorcycle during May, a
company release said.
The company today announced that it has achieved a milestone with its Daruhera plant, in
Haryana, becoming the first Indian two-wheeler plant to produce 5 million units. The 5 millionth
motorcycle was a Splendor. The first motorcycle, CD100, had rolled off the assembly line in
April 1985.
Customer satisfaction, a high quality product, the strength of Honda technology and the Hero
group's dynamism have helped HHML scale new frontiers and exceed limits.
In the words of Mr. Brijmohan Lall 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 and through efficient management."

25

o PRICING STRATEGY OF HERO HONDA

A rich background of manufacturing high value, reasonably priced products; an uncompromising
pursuit of the goals to attain quality along with customer satisfaction; the resulting affinity in
working cultures - brought the world's largest manufacturer of motorcycles in collaboration with
the world's largest bicycle manufacturer, bringing forth a market leader. Honda Motor Company
of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors Limited in
1984.
The Karizima features a 223cc, 17PS power pack that accelerates you from 0-60 in 3.8 seconds.
Distinctive styling and Mag alloy wheels make this bike stand out before it races away from the
pack.
Digital ignition and a constant vacuum carburetor facilitate better control of ignition timing
Thats why Priced at Rs. 76,206/- on road Mumbai the Karizma is available in seven attractive
shades.
If we take the example of Karizma (A bike of Hero Honda).
o PROMOTION STRATEGY OF HERO
A thorough understanding of the fast-changing consumer behavior, new market segments and
product opportunities along with sensitivity to changing customer needs, form the core of Hero's
marketing strategy and philosophy.
At Hero, we essentially have a completely customer-driven approach. A nation-wide dealer
network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise
holders for motorcycles, ensures convenient access to the Group's products across the country.
26

With a deep sense of belonging to the Hero fraternity, the Group's dealer network has catalyzed
growth and acted as a strong bridge between the customers and the Group.
Conventionally, very few Indian bicycle manufacturers were interested in exports. However, the
Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle segment as
early as 1963. It was a move prompted primarily by the need to be attuned to the global
marketplace.
While initial exports were restricted to Africa and the Middle East, today more than 50 percent of
the Group's bicycle exports meet the demands of sophisticated markets in Europe and America.
This is primarily because of appropriate product development and excellent quality that Hero
offers.
The Group has undertaken a steady up gradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent international standards.
At the core of it all is a customer-centric scheme of policies and production ... and the bottom
line is to "Add Value while Engineering Satisfaction.
Advertisement strategy
Hero Honda has snagged the brat pack Virender Sehwag, Mohammad Kaif, Yuvraj Singh and
Zaheer Khan. The two-wheeler maker, an official sponsor of the World Cup tournament to be
played in South Africa in February, has brought the young and exciting cricketers of the Indian
team on board as brand ambassadors.
The Fab Four along with team captain Sourav Ganguly will feature in the ads for its latest
motorcycle model: the Ambition. Hero Honda is extremely cagey about saying how much they
had to fork out to bring the top cricketers to feature in the ads.
Atul Sobti, senior vice-president, marketing and sales declined to say how much they planned to
invest in the ad campaign. "It will give a lot of leverage to the new product Ambition by giving
the image of a powerful and efficient motorcycle. The powerfu-e-l bike will be well represented
by the leadership qualities, power and the capacity to face any challenges," he added.
The current ad for Ambition is tame; it shows an important file reaching a destination in time
because of the power of the motorcycle. "It does not properly appeal to the customers about the

27

power and efficiency of the product. 'Team Ambition' will be much better suited to represent the
product," sources said.
Hero Honda is hoping to crank up sales of Ambition because of the endorsements by the top
cricketers during the World Cup when cricket fever will be at its highest.
One major advantage is that none of its rivals will be able to use cricketers to endorse their
products before and after the World Cup because of the ambush-marketing clause that the
International Cricket Council (ICC) has worked into the players contracts.
The issue had sparked a row when it was raised just before the ICC champions trophy in Sri
Lanka in September but was resolved after a stand-off between ICC, the cricket boards of several
nations and the players.
Hero Honda plans to increase its market-share to 50 per cent this fiscal and is targeting sales of
10,000 Ambitions a month. Its share dipped from 48 per cent to 45 per cent.
The 133 cc Ambition generates 11 bhp of thrust, which has been kept low in order to improve
fuel efficiency. It has been placed in between the 125cc and 150cc motorcycle categories to draw
the maximum clientele. The bike accelerates from 0-60 kmph in only six seconds.
While launching the new campaign with the cricketers, Hero Honda is also drawing up plans for
a couple of ads with the other brand ambassador, Hrithik Roshan.
Hero Honda's association with cricket goes back to 1993, when it sponsored the Hero Cup. It
was the official sponsor of the recent ICC Champions Trophy in Sri Lanka and will have the
same status for the ICC World Cup in 2003.

PURPOSE OF THE STUDY

Whenever we think of the origin of Indian Two-wheelers market, we think of old and stodgy
Vespa based models of scooters and Japanese models of motorcycles, but now in the era of
globalization the situation has completely changed as the many industries are sizzling hot with
continuous poaching of scooters by motorcycles as well as regular launching of new models of
motor bikes. Earlier the shelf life of models was in tune of 10-15 years but now it has come
down drastically due to intense competition in motor bike industry. Hero Honda is trying to save
its dominance in motorbike market from rigorous attacks of Bajaj Auto and TVS while Bajaj
Auto is changing its portfolio by heavy inclusion of motorcycles in it. In this battle LML Group,
28

Kinetic Group, Yamaha Motors, Honda Motors and Royal Enfield are also trying to provide
something new to the customers.

Hero MotoCorp Ltd

Hero MotoCorp Ltd. Formerly Hero Honda is an Indian motorcycle and scooter manufacturer
based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero
Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in
India. In 2010, When Honda decided to move out of the joint venture,[7] Hero Group bought the
shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity. Product range of Hero MotoCorp are: [5]

CD 100

Passion

Passion Plus

CD 100 SS

CBZ

Karizma

Splendor

CD Dawn

Ambition

Splendor +

CBZ Star

Ambition 135

Impulse

Acheiver

Pleasure

Street

Hunk

Joy

Glamour

CD Deluxe

Market Segmentation
Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income
and age. It caters to youth of all income groups. Its highest selling bike Splendor is a favorite in
sub urban and rural India. It potrays itself as the most efficient bike range to cater to Indian
Roads.

29

Target Market
Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to
Rs 95, 000. Each product has multiple optional features. The USP that it uses are: strong, sturdy
and powerful, greater mileage, low maintenance cost, safe to ride, ease and comfort. Its target
market includes lower middle class consumer to upper middle class consumer. It is affordable,
available and acceptable by all.

Positioning Strategy
Fill it. Shut it. Forget it Campaign
This campaign focused on the mileage of Hero
bikes. It says that once you fill oil in the bikes
tank, you are tension free. Due to its higher mileage,
you can travel as much as you want without bothering
to refill oil.
Dhak dhak go Advertisement campaign
Dhak dhak refers to the heart beat. Therefore this
campaign showed that if you are riding a Hero
bike you are listening to your heart. This campaign
connects emotionally to the consumer as it shows the
connection of bikes to the heart of every Indian.
Desh ki Dharkan Advertisement Campaign
Desh ki dharkan refers to the heart beat of the
country. It symbolizes that all people in India
are emotionally attached to their country. Even
though there are a lot of cultural differences but
the entire country stands as one. This campaign
places Hero bikes as the heart beat of the entire
30

nation uniting everyone as a nation.

Event sponsorships
Event sponsorships of various cricket matches is
a positioning strategy as cricket has a huge fan
base in India. It positions itself as a strong, reliable,
affordable and greater mileage bikes.

Celebrity endorsements
Various celebrity endorsements are used as their positioning technique. Saurav Ganguly, when
he was captain of Indian Cricket team was their brand ambassador along with Hritik Roshan.
Both these personalities are unique in their fields. Saurav Ganguly was the face of Indian
cricket. People worshiped him. So, through Saurav Gaunguly, Hero potrayed itself as the heart
beat of the country. Iconic figure Hritik Roshan is known for his youth and physique. So through
him Hero tried to lure the youth.
Hum me hai hero campaign
This is the recent advertisement of Hero MotoCorp. This advertisement tries to prove that we all
are born super starts. We just need to focus and believe in ourselves. There is nothing impossible
in this world and there is nothing that cant be achieved. Through perseverance we can reach
great heights and achieve whatever we want. We just need to believe firmly that we are a hero.
Conclusion
Hero MotoCorp is the biggest two wheeler manufacturer in the world. It has the highest market
share in India. It has successfully delivering its promise to its target customers. The aggressive
market positioning strategy that it uses places it way above its competitors. It relates itself to
every Indian. It is a bike for the Indian consumers satisfying all their needs.
Yamaha Motor Company Limited
Yamaha Motor Company Limited, is a Japanese motorized vehicle-producing company. Yamaha
made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with
the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake

31

becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). Presently, its product
portfolio includes: [6]

VMAX (1,679cc)

Fazer (153cc)

SS125 (123cc)

MT01 (1,670cc)

FZ-S (153cc)

YBR 125 (123cc)

YZF-R1 (998cc)

FZ16 (153cc)

YBR 110 (106cc)

FZ1(998cc)

SZ-R(153cc)

Crux (106cc)

YZF-R15 version 2.0 (150cc)

SZ & SZ-X (153cc)

Market Segmentation
Yamaha caters to the market of tier I and tier II cities. It caters to males between the age group of
18 to 35. It caters to upper middle class families. It has high pick up and speed. It is the most
innovative and most stylish bike manufacturers. Therefore, it is youth centric.
Target Market
Yamaha has single segment concentration. It is known as a racing bikes manufacturer. Speed
Biking is mainly attributed to Yamaha. Thus positioning itself as a manufacturer of safety first
bikes, as well as the most style conscious segment. It also focuses on comfort, technology
advancements. Its target customers are the people who are sporty, thrill loving and style
conscious.
Positioning Strategy
YES Yamaha Advertisement
YES stands for Yamaha extended services. It tells

32

that now Yamaha is growing in all parts of the

country. It has good nationwide service. It can be
purchased easily. It gives good pick up, speed and
better mileage. It provides comfort. Therefore, this
advertisement portrays Yamaha as common mans
racing bike. It conveys the message of staying ahead
of tortoises focusing on the speed of the bike
.
Celebrity endorsements
John Abraham is the brand ambassador for
Yamaha SZR. The hard sturdy look of the bike
can be correlated with the masculinity of John
Abraham. It thus says that it is a bike for all
masculine, speed and thrill loving people.

Use of songs for advertisement

Yamaha thought it is the best way to portray the efficiencies of the bikes. To enhance the
advertisement and make it appealing, the song Ruk Jaana Nahin has been used as the
background score. The campaign is a national level campaign catering to regional markets as
well including south, west and east India. The target consumer is essentially 24 yrs & above from
SEC A/B and preferably male.
Conclusion
Yamaha reflects racing bikes in India. It has good pick up and speed. It is famous for its sturdy,
stylish looks and best technologies. It caters to upper middle class and middle-middle class
income group, especially adult.
Bajaj Auto Ltd.
Bajaj Auto Limited, is an Indian motorized vehicle-producing company. Bajaj Auto is a part
of Bajaj Group. Its founded by Jamnalal Bajaj at Rajasthan in the 1930s. Bajaj Auto is the

33

world's third-largest manufacturer of motorcycles and second-largest in India.Over the last

decade, the company has successfully changed its image from a scooter manufacturer to a twowheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its
real growth in numbers has come in the last four years after successful introduction of a few
models in the motorcycle segment.[7]

CT 100

Platina

Avenger

Discover

Eliminator

Wind 125

Caliber 115

Pulsar 150 KS

Kawasaki Ninja

Boxer

Market Segmentation
Bajaj caters to the mass consumer. It caters to middle-middle and upper middle income group of
consumers. It does not have the rural support. It still lags behind in the rural areas. It caters to
aspiring young men of the country.
Target Market

34

Bajaj follows selective specialization while targeting its consumers. Its concentrates on the youth
of the country who are technology freak. It offers a wide variety, so that it can cater to various
income groups of the country.
Positioning Strategy
Celebrity endorsement
The very first TV Commercial of the Bajaj Discover
DTSi (125 cc at that time) in 2004 featured the Cine
Star of Asia, Jackie Chan. Jackie Chan is known for
his fast moves, action, and quick reflexes. So the
features of this bike could be easily related to
that of Jackie Chan. The bike is fast, has speed and
technology and can survive in all sorts of roads.
This advertisement convinces you to be a master who always wins similar to Jackie Chan. It
portrays the image of the bike to be a master piece.
1.1.1

Pulsar mania

This advertisement symbolizes bike stunts of different range. The campaign beard innovative
punch line of Definitely Male positioning pulsar to be a masculine looking model with an
appeal to sensitive customers. It boosts the male ego of its target customers. It makes them feel
themselves as the fastest Indian
Discover India with the power of 1 L petrol
This advertisement positions Bajaj as a fuel efficient bike with a greater mileage. It makes you
feel that you can travel to the most exhaustic and amazing places in India, i.e., discover the
undiscovered India. This also gives a patriotic touch to the mindset of people making them fell
proud of their nation. You can cross crowded lanes, mountain paths and explore the rich heritage
if India without any worries of oil refilling.

35

Hamara Bajaj
This was the tag line of Bajaj Auto Ltd. It positions Bajaj as your own bike. It gives the
feeling of belongingness therefore playing with the emotions of the consumers.
Conclusion
Bajaj is the second largest manufacturer of bikes in India after Hero Moto Corp. Its twin spark
technology, speed, fuel efficiency had made a favorite in Indian roads. It gives you a feeling of
belongingness. It makes you feel male and emotionally binds you to Mother India.
TVS Motor Company
TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the
top ten in the world, and is the flagship company of the USD 4 billion TVS Group. TVS Motor
currently manufactures a wide range of two-wheelers from mopeds to racing inspired
motorcycles. Their bikes range includes:

Apache RTR 180

Flame DS 125

Flame

TVS Jive

StaR City

Sports

Market Segmentation
The range of TVS bikes are less. It caters to the lower middle class and the middle-middle class
income groups. It caters to the youth. It segments itself on the basis of gender as well as it
caters to male.
Target market
TVS focuses on the multi segment strategy of targeting the market. It caters to youth of both
lower middle class and the middle-middle class income groups. It caters to those who are
passionate about owning a bike.
1.2 Positioning Strategy
1.2.1

Celebrity endorsements

TVS endorses Sachin Tendulkar as its brand

ambassador. Sachin is a the greatest cricketer
India has ever produced. Hence people can easily
link to it as something great and good. So,
36

TVS positions itself as a bike that is safe,

balance and can be easily maintained.
Powerful and stylish
This advertisement shows that TVS bikes are stylish, powerful, masculine and can be easily
flaunted off amongst peers. It gives you a feeling of superiority.
Conclusion
The aggressive marketing strategy along with the changed approach to advertisement campaign
boosted the demand for the TVS models. They can be easily affordable, reliable and easy to
maintain. TVS has positioned itself well in the bikes sector. It arises a passion in you to own
something that you feel proud of.
Harley Davidson
Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer.
Founded in Milwaukee,Wisconsin, during the first decade of the 20th century, it was one of
two major American motorcycle manufacturers to survive the Great Depression. The company
sells heavyweight (over 750 cc) motorcycles designed for cruising on the highway. HarleyDavidson motorcycles (popularly known as "Harleys") have a distinctive design and exhaust
note. They are especially noted for the tradition of heavy customization that gave rise to
the chopper-style of motorcycle.[8]
Market Segmentation
It caters to tier I and tier II cities. It caters to touring enthusiastic and outdoor oriented male of
high income groups between the age of 27 to 45. It caters to innovators or achievers who are self
employed business men and are ready to buy the product. They want to but it for leisure riding,
planning weekend rides etc.
Target market
It caters to people who golf, who own yachts, indulge in leisure activities, hoteliers, resort
owners in tourist destinations are always looking to add new luxury items into their fleet for their
clients to indulge into leisure activities.
Positioning Strategy
The brand positions itself as:

Masculine
37

Free spirited

Rugged

Macho

Strong

Adventurous

Conclusion
Harley Davidson is a bike of the premium category. It caters to the high end people who wish to
derive pleasure while riding them.
STATEMENT OF THE PROBLEM
This Project has been titled A comprehensive study Post purchase buyer behavior and
satisfaction towards Hero Motors Bikes after the split with Honda."
To study the new market of Hero motors after the split with Honda, the consumer response to the
bike and needed improvement aria
The study would help to understand the consumer satisfaction to their expectation.

OBJECTIVES
This study was conducted keeping the following objectives in mind.
1. To study the factors which influence the purchase of Hero two-wheelers?
2. To know the customer level of awareness of Hero two-wheelers.
3. To know the various factors, which influence customers in purchasing, theyre two wheelers?
4. To find the after sales service offered by Hero MotoCorp Ltd.
5. To know the customer level of satisfaction of Hero two-wheelers with respect to Hero
MotoCorp Ltd.
6. To find the profile of Hero MotoCorp Ltd two-wheeler customers.
7. To understand two wheeler sector in India.
38

8. How the split with Honda has affected Hero motors.

SCOPE OF THE STUDY
This study helps the organizations to increase their service and product quality and in
turn increase the market share, top and bottom line of the company.
NEED FOR THE STUDY
Marketing starts with identifying the needs of customers and ends in satisfying those
wants. The goal of marketing is to attract new customers by promising superior value and to
keep current customers by delivering satisfaction based on their preferences retaining them.
Without customer, no market exists. As the customers are regarded as the superiors in
todays market, the level of satisfaction and their preferences should be keenly studied.
The two-wheeler industry has been expanding rapidly.

Gone are the days when

possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity.
Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas
the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles.
Not only this, this industry has also customers ranging from all demographic segments. It
has been common sights that even school going children are driving two-wheelers. The women
customers are also increasing due to increase in women literacy and employment.
Getting a new customer is difficult, than retaining a current customer is a more difficult
one and not only that it is estimated that the cost of attracting a new customer is five times the
cost of retaining current customer. It requires a great deal of effort to induce satisfied customer
to switch away from their current preference. Thus, customer satisfaction is been given top
priority in todays competitive world.
Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the
customers satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a
detailed study of customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.

39

COMPANY PROFILE
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of
two - wheelers, based in India. In India, it has a market share of about 46% share in 2-wheeler
category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at
108. On 31 March 2013, the market capitalisation of the company was INR 308 billion (USD
5.66 billion)
Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of
Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the
shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.

40

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till
date.
HeroMotoCorp is now worlds largest manufacturer of two-wheelers. The company has
benefited from the demand shift to motorcycles, as it focuses solely on this product segment
(although has a product called Pleasure in Scooter segment). With fuel efficiency and riding
comfort as the main selling points, HMC has been able to address a wide market and post robust
sales growth even after its separation from the Japanese major Honda.
VISION
The story began with a simple vision the vision of a mobile and an empowered India, powered
by its bikes. Hero MotoCorp Ltd., companys new identity, reflects its commitment towards
providing world class mobility solutions with renewed focus on expanding companys footprint
in the global arena.
MISSION
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts
its customers into its brand advocates. The company will provide an engaging environment for
its people to perform to their true potential. It will continue its focus on value creation and
enduring relationships with its partners.

STRATEGY
Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore
growth opportunities globally, continuously improve its operational efficiency, aggressively
expand its reach to customers, continue to invest in brand building activities and ensure customer
and shareholder delight.
MANUFACTURING
Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in

41

the state of Haryana in northern India. The third and the latest manufacturing plant are based at
Haridwar, in the hill state of Uttrakhand.
TECHNOLOGY
In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection
(FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.
Its plants use world class equipment and processes and have become a benchmark in leanness
and productivity.
Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and
develop cutting edge products and processes
DISTRIBUTION
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and
service network now spans over to 5000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.
Supply chain management
As the Company prepares to produce a wider range of products, efforts are being taken to align
the supply chain and prime up its supplier base. During the year, the Company kick-started the
process of migrating its existing brands to the new brand. The exercise is expected to be
completed during 2012-13.
During the year, the Company also commenced the process of working with its vendors to
develop new parts. The Companys Supply Chain Management function is built on three planks:

Cost
Quality
Sustainability

Tracking inventory cost effectively and efficiently is known to be a key source of competitive
advantage in the automobile industry. Hence, it comes as no surprise that cost leadership is the
Companys prime focus area. Continual pressure on margins forced the Company and its supply
chain partners to find innovative and alternate ways to combat inflation. Considerable attention
was given to managing component inventory in the system, with double-digit growth in
42

inventory turnover. To align HR processes with the supply chain, top two HR consulting firms in
India are working with supply chain partners. The exercise is aimed at improving robustness of
people processes and resulting in a direct impact on quality, cost, productivity, delivery and
reliability. The move will enable supply chain partners move to the next orbit of operational
excellence. The Company initiated more than 30 quality improvement projects with supply chain
partners to provide better quality products to customers.
BRAND
The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero
MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology
and creating global footprint. Building and promoting new brand identity will be central to all its
initiatives, utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground- level activation.
Termination of Honda joint venture
In December 2010, the board of directors of the Hero Honda Group has
decided to terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero
Honda. Under the joint venture Hero Group could not export to international markets (except Sri
Lanka) and the termination would mean that Hero Group can now export. Since the beginning,
the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there
are concerns that the Hero Group might not be able to sustain the performance of the Joint
Venture alone.
The Japanese auto major will exit the joint venture through a series of
off market transactions by giving the Munjal familythat held a 26% stake in the companyan
additional 26%. Honda, which also has an independent fully owned two wheeler subsidiary
Honda Motorcycle and Scooter India (HMSI)will exit Hero Honda at a discount and get over
$1 billion for its stake. The discount will be between 30% and 50% to the current value of
Honda's stake as per the price of the stock after the market closed on Wednesday.
The rising differences between the two partners gradually emerged as an
irritant. Differences had been brewing for a few years before the split over a variety of issues,
43

ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high
royalty payouts to the Japanese company. Another major irritant for Honda was the refusal
of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts
business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part,
the Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated
special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge
loans. This SPV would eventually be thrown open for private equity participation and those in
the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital,
and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as
well as future models.

Hero No. 1 and going strong

When Hero parted ways with Honda three years ago, there were a whole lot of people who
thought it was all over for the Munjals-promoted group.
If the numbers of 2013-14 are anything to go by, these naysayers would probably have to eat
their words. Hero MotoCorp wrapped up with sales of 6.25 million bikes and scooters,
44

considerably ahead of its former Japanese partners tally of 3.72 million units. Bajaj Auto
followed with 3.42 million with TVS Motor just short of the two million-unit mark (1.99
million).
Industry sources say Hero will sit pretty so long as its killer duo, the Splendor and Passion,
continue to catch the eye of the market. Sure, they have been around for years but buyers dont
seem to mind, an executive from a rival two-wheeler company said. These two brands account
for nearly 60 per cent of Hero MotoCorps sales and are going as strong as ever.
Expansion
Yet, there is no denying the fact that Honda is already proving to be a serious adversary. At the
time of its split with Hero, it only had one plant in Haryana which was churning out 1.6 million
bikes/scooters annually. Since then, the company has added Rajasthan, Karnataka and Gujarat to
its expansion plans. In the following weeks, its capacity will reach 4.6 million units and,
following the commissioning of the Gujarat facility, this will be close to six million units.
This remarkable buildup will happen in the next 18 months which means Honda will quickly
bridge the gap with Hero unless the latter manages to replicate this kind of a feverish pace. By
the end of 2015-16, Honda is targeting 40 per cent of the market and is likely to take the top slot
very soon thereafter.
It will also be interesting to see what Bajaj Auto has up its sleeve while the tug-of-war between
Hero and Honda intensifies in the coming months. The Pune-based company has reiterated that it
will focus on its Pulsar and Discover brands in motorcycles while leveraging KTM both here and
overseas. Bajaj will also continue to focus on building its exports business which could take up
50 per cent of its volumes in the next couple of years.
TVS Motor, likewise, is gradually building its numbers and will have reason to be pleased with
its scooter business. The Jupiter has quickly established itself as a brand to reckon with while the
more established Scooty is also in auto mode.
Indeed, scooters have been the biggest growth story of 2013-14 as evident in the portfolio of
Honda, Hero, TVS, Yamaha and Suzuki. The notable exception to this list is Bajaj, once
synonymous with the traditional geared scooter. The company is categorical that it will stick to
motorcycles which form a larger part of the global canvas. Will it change its mind about scooters
in the near future? This remains the million dollar question.
Directors

45

Founder Director and Chairman

Dr. Brijmohan Lall Munjal

Managing Director and CEO

Mr. Pawan Munjal

Board of Directors
Name of the person

Nature of the Office

Mr. Sunil Kant Munjal

Non Executive Director

Mr. Suman Kant Munjal

Director

Mr. Paul Edgerley

Non Executive Director

Mr. Pradeep Dinodia

Director

Gen. (Retd.) V. P. Malik

Director

Mr. Analjit Singh

Director

Dr. Pritam Singh

Director

Mr. M. Damodaran

Director

Mr. Ravinath

Director

Dr. Anand C.Burman

Director

Dr. Brijmohan Lall Munjal

Mr. Munjal is the founder Director and Chairman of the Company and the
$3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the
Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government.
Corporate Governance
At Hero MotoCorp, it is the firms belief that the essence of Corporate Governance lies in the
phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the shareholders. The
Chairman and Directors are ''Your'' fiduciaries and trustees. Their objective is to take the
business forward in such a way that it maximizes ''Your'' long-term value.
This Company is committed to benchmarking itself with global standards for providing good
Corporate Governance. It has put in place an effective Corporate Governance System which
ensures that the provisions of Clause 49 of the Listing Agreement are duly complied with.

46

The Board has also evolved and adopted a Code of Conduct based on the principles of Good
Corporate Governance and best management practices being followed globally.
GRADING POSITIVES
Market leadership, strong brand equity, professional management, high operating efficiency and
established scale economies. Strong financial profile characterized by healthy margins, high
profitability and cash generation. Potential upsides to our estimates: (1) HMCL sustains its
current market share, leveraging its brand equity, product performance and distribution strengths;
(2) industry growth exceeds our estimates over the medium term despite existing concerns on
macro-economic scenario; (3) HMCL betters the margins estimated by us via sustained business
growth and increases in operating efficiency even in the face of competitive and cost pressures.
GRADING SENSITIVITIES
Key sensitivities to our estimates include:
(1) Inflation in input costs not being neutralized by price increases because of competitive
pressures;
(2) High concentration on Executive segment;
(3) Intensifying competition from global players;
(4) Ability to develop in-house technical capability or form alternate technical tie-ups with
external institutions.

Company History - Hero Moto Corp

1956Formation of Hero Cycles in Ludhiana(majestic auto limited)

1975Hero Cycles becomes largest bicycle manufacturer in India.

47

1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated

1985Hero Honda motorcycle CD 100 launched.

1989Hero Honda motorcycle Sleek launched.

1991Hero Honda motorcycle CD 100 SS launched.

1994 Hero Honda motorcycle Splendor launched.

1997Hero Honda motorcycle Street launched.

1999 Hero Honda motorcycle CBZ launched.

2001 Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition

launched.

2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor

plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle
Karizma launched.

2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*
launched.
48

2005Hero Motocorp SuperSplendor, Hero Honda motorcycle CD Deluxe, Hero

Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda
Scooter Pleasure.

2007New Models of Hero Honda motorcycle Splendor NXG, New Models of

Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle
Passion Plus and Hero Honda motorcycle Hunk launched.

2008New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.

2009New Models of Hero Honda motorcycle Karizma:Karizma ZMR and

limited edition of Hero Honda motorcycle Hunk launched

2010New Models of Hero Honda motorcycle Splendor Pro and New Hero
Honda

motorcycle

Hunk and New Hero

Honda

Motorcycle

Super

Splendor

launched.

2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ

Xtreme, Karizma launched. New licensing arrangement signed between Hero and
Honda. In August Hero and Honda parted company, thus forming Hero MotoCorp
and Honda moving out of the Hero Honda joint venture. In November, Hero
launched its first ever Off Road Bike Named Hero "Impulse".

2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor
the young generation bike are launched.
49

2013-Hero MotoCorp unveiled line-up of 15 updated products including Karizma

R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero
Motocorp SuperSplendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It
also introduced three new technologies- Engine Immobilizer in new Xtreme,
Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start
System) in new Splendor iSmart.

Awards & Recognitions on 2011

Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the
"Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike

Awards.
CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new

corporate entity" by CNBC Awaaz Consumer Awards

"Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz

Consumer Awards
Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero

Good Life
"Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion

Marketing Award of Asia Order of Merit for Hero Good Life

Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
Trusted Brand" 2011 serve

Profile of target customer

Hero MotoCorp basically targets the every each and segments of the market. So there are some
products like splendor, CD- dawn (rs40000-50000) they made for lower segment of the market
and glamour, passion, CBZ, karizma (rs above 50000) for the upper segment of the market. And
now they are trying to target the young people of the market.
Indias Hero MotoCorp, the worlds largest producer of motorcycles and scooters, has announced
its intention to expand globally, with plans to sell vehicles on three continents and nearly double
50

its unit sales within five years. The company, whose family shareholders bought out its former
partner Honda Motor this year, said it would invest about $1bn to expand internationally in
south-east Asia, Africa, and Central and Latin America.

Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in their product.
And after selling they have the services and maintenances. Their constant endeavor is to support
the company's mandate of providing highest level of customer satisfaction by taking good care of
customers two-wheeler service and maintenance through their vast network of more than 2100
committed dealers and service outlets spread across the country.
Apart from that hero motocorp focused on cleanliness and other aesthetics of the service stations
and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance the in
house experience of the customers at those customer touch point. To ensure that millions of
customers in the rural area are not left waiting for adequate service as it is impossible for the
company to introduce service station at every nook and corner of the country, mobile service
stations are regularly arranged with prior intimation to public about the rout that the mobile
workshop would take when passing through that region so that customers can come and get their
two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus
retaining customers.
Good life: Customer Loyalty Program
Good Life is a Customer Relationship Program introduced a decade ago, which Endeavours to
enhance customer satisfaction and initiate increased levels of member engagement.
The main objective of this Program is to make our customers our Brand Ambassadors to generate
referral sales and boost service visits.
The GoodLife Program has enabled the Company build a consolidated base of 10 million plus
loyal customers; in the process, a new distribution platform has emerged. GoodLife now
51

contributes a huge 14% to the Companys overall sales (purely through referrals), in addition to
incremental sales. GoodLife has emerged as the largest Customer Relationship Program in India,
witnessing additions of 0.38 million members each month. During the year, the Programs
member base shot up 16%, with new 4.51 million transactions being undertaken.
Besides aiming to increase the number of customers and volume of transactions, the Program
seeks to enhance revenue opportunities for dealers as well. Different levels of engagement have
been in-built into the Program with the aim of increasing its people engagement initiatives. Some
of these are: transaction-based rewards, exclusive event invites, personal accidental insurance,
service continuity bonus, transaction benefits on special occasions (birthdays, anniversaries),
quarterly newsletters and interaction through a program website.
The Program began with a member transaction booklet, a replica of the Passport Booklet, which
helps in engaging with customers. However, the Program has been e-enabled now to improve its
geographical reach and efficiency level. It runs on the backbone of a robust and engaging frontend and a sound, solid and technical back-end. The Program includes customized technology,
combining a mix of Magnetic Swipe/Bar Code. Personalized Membership Cards are shared with
GoodLife members, which are easy to carry, transact and earn/redeem rewards. Online member
profiling and real-time customer feedback module (via questionnaires) are some more salient
features of the Program. During the year, GoodLife has been the recipient of several accolades
and awards on national and international platforms. Some of these were:

Order of Merit in PMAA awards 2011 under Best Activity Generating Short or Long

Term Brand Loyalty category

Colloquy Award under Innovation in Loyalty Marketing (International) category
Qualified as ECHO Finalist (5th place) in 2011 DMA International ECHO Awards
competition Loyalty Award under Auto Sector

OPERATION RAMP-UP
With demand for bikes recording a stupendous growth of 15% during the year under review, the
Companys capacities were severely strained. This prompted it to augment its capacity at its three
plants up from 5.4 million units to 6.35 million during the year. This was made possible

52

through a number of de-bottlenecking measures. For example, the Companys plants were made
leaner by outsourcing non-critical processes and operations.
Besides this, a number of structural changes and alterations were made in its manufacturing
strategy to effectively implement its Sales Plan for 2012-13.
Major replacements were also executed in the paint and assembly shop, ensuring little or no
shutdown along the assembly line. Apart from the above measures, several innovative
technologies were inculcated to reduce operational costs. Some examples of these are:

A breakthrough technology for gear rolling was implemented for mass-production

Fine blanking, an alternate process of hobbling, was introduced for sprocket

components
Advanced cam grinding was introduced to increase productivity and control costs

The Companys oldest plant at Dharuhera was in the limelight for two specific reasons:

Wage negotiations were concluded

Plant won TPM Excellence Award

The Company continues to set new industry benchmarks in the areas of energy conservation and
sustainability. Vapour absorption machines and heat recovery units were installed during the year
to utilize waste heat from Gas DGs for air-conditioning and pre-heating of hot water generation.
Other green initiatives included projects on waste water management, LED lighting and solar
power. These cost leadership and green projects yielded considerable savings to the Company
within a short period of time.
Termination of Honda joint venture
In December 2010, the board of directors of the Hero Honda Group has decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The
Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero
Group could not export to international markets (except Sri Lanka) and the termination would mean that
Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda
for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the
performance of the Joint Venture alone.
53

The Japanese auto major will exit the joint venture through a series of off
market transactions by giving the Munjal familythat held a 26% stake in the companyan additional
26%. Honda, which also has an independent fully owned two wheeler subsidiaryHonda Motorcycle and
Scooter India (HMSI)will exit Hero Honda at a discount and get over $1 billion for its stake. The discount
will be between 30% and 50% to the current value of Honda's stake as per the price of the stock after the
market closed on Wednesday.
The rising differences between the two partners gradually emerged as an irritant.
Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's
reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires
in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company.
Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to
merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle and
Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal
family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle
(SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be
thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis
Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as
future models.

54

When Hero parted ways with Honda three years ago, there were a whole lot of people who
thought it was all over for the Munjals-promoted group.
If the numbers of 2013-14 are anything to go by, these naysayers would probably have to eat
their words. Hero MotoCorp wrapped up with sales of 6.25 million bikes and scooters,
considerably ahead of its former Japanese partners tally of 3.72 million units. Bajaj Auto
followed with 3.42 million with TVS Motor just short of the two million-unit mark (1.99
million).

55

Industry sources say Hero will sit pretty so long as its killer duo, the Splendor and Passion,
continue to catch the eye of the market. Sure, they have been around for years but buyers dont
seem to mind, an executive from a rival two-wheeler company said. These two brands account
for nearly 60 per cent of Hero MotoCorps sales and are going as strong as ever.

Expansion
Yet, there is no denying the fact that Honda is already proving to be a serious adversary. At the
time of its split with Hero, it only had one plant in Haryana which was churning out 1.6 million
bikes/scooters annually. Since then, the company has added Rajasthan, Karnataka and Gujarat to
its expansion plans. In the following weeks, its capacity will reach 4.6 million units and,
following the commissioning of the Gujarat facility, this will be close to six million units.
This remarkable buildup will happen in the next 18 months which means Honda will quickly
bridge the gap with Hero unless the latter manages to replicate this kind of a feverish pace. By
the end of 2015-16, Honda is targeting 40 per cent of the market and is likely to take the top slot
very soon thereafter.
It will also be interesting to see what Bajaj Auto has up its sleeve while the tug-of-war between
Hero and Honda intensifies in the coming months. The Pune-based company has reiterated that it
will focus on its Pulsar and Discover brands in motorcycles while leveraging KTM both here and
overseas. Bajaj will also continue to focus on building its exports business which could take up
50 per cent of its volumes in the next couple of years.
TVS Motor, likewise, is gradually building its numbers and will have reason to be pleased with
its scooter business. The Jupiter has quickly established itself as a brand to reckon with while the
more established Scooty is also in auto mode.
Indeed, scooters have been the biggest growth story of 2013-14 as evident in the portfolio of
Honda, Hero, TVS, Yamaha and Suzuki. The notable exception to this list is Bajaj, once
synonymous with the traditional geared scooter. The company is categorical that it will stick to
motorcycles which form a larger part of the global canvas. Will it change its mind about scooters
in the near future? This remains the million dollar question.

56

PORTFOLIO OF PRODUCTS
Hero MotoCorp offers wide range of two wheeler products that include motorcycles and
scooters, and has set the industry standards across all the market segments.
100cc
Bike category

SPLENDOR PLUS
SPLENDOR NXG
SPLENDOR PRO
PASSION PRO
PASSION XPRO
MAESTRO
PLEASURE
HF DAWN
HF DELUXE
125cc

Bike category

GLAMOUR
SUPER SPLENDOR
IGNITOR
Glamour PGM FI
150cc
Bike category
ACHIEVER
KARIZMA
57

KARIZMA ZMR
IMPULSE
HUNK
XTREME

Termination of Honda joint venture

In December 2010, the board of directors of the Hero Honda Group has decided to
terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The
Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero
Group could not export to international markets (except Sri Lanka) and the termination would mean that
Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda
for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the
performance of the Joint Venture alone.
The Japanese auto major will exit the joint venture through a series of off
market transactions by giving the Munjal familythat held a 26% stake in the companyan additional
26%. Honda, which also has an independent fully owned two wheeler subsidiaryHonda Motorcycle and
Scooter India (HMSI)will exit Hero Honda at a discount and get over $1 billion for its stake. The discount
will be between 30% and 50% to the current value of Honda's stake as per the price of the stock after the
market closed on Wednesday.
The rising differences between the two partners gradually emerged as an irritant.
Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's
reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires
in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company.

58

Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to
merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle and
Scooter India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal
family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose vehicle
(SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be
thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis
Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as
future models.

59

RESEARCH METHODOLOGY

TYPE OF RESEARCH:
Descriptive Research includes surveys & fact-finding enquires of different
kinds. The major purpose of Descriptive research is description of the state of
affairs as it exists at present. In Business research we quite often use the term
Ex post facto research for descriptive research studies.

TYPE OF DATA COLLECTED:

Primary Data & Secondary Data. Primary Data are original & first hand
information. Secondary Data are second hand information & are collected
through different sources.

Primary:

Primary

Data

collected

method

is

questionnaire.

questionnaire is a form of containing a series of questions and providing

space for their replies to be filled in by the respondent himself/herself.
Questionnaire is filled in by a respondent without any direct oral
explanation or interpretation from the investigator.
Secondary: Textbooks & websites.
60

UNIVERSE OF STUDY :
Universe means the inclusion of all the items in the field of statistical
enquiry. Here, the universe is the entire Dabur company & the study was
organized within this region only.
SAMPLE UNIT :
Topic is related to social problem, therefore the age limitation is required
so that the response is considered.

SAMPLING TECHNIQUES:
Convenient Technique is one in which researchers select those units of
the population in the sample which appear convenient to him or to the
management of the organization where he is conducting research

SAMPLE SIZE:
When only a few part of whole group of population is studied that is
termed as sample size of whole population. Here the sample size is 100.

STATISTICAL TOOLS:
Different statistical tools are applied here. Some of them are:

TABULAR PRESENTATION:
It is a systematic presentation of numerical data in columns & rows in
accordance with some important feature or characteristics.

61

 PICTORIAL PRESENTATION:
it is visual form of statistical data in diagrams & graphs. Different types of
Diagrams are used such as: Simple Bar Diagrams, Sub Divided Bar
Diagram, Multiple Bar Diagram, Pie-Diagram etc. Graphs have also been
used like Line Graph.

RESEARCH DESIGN:
As the result we require in analytical form. The survey was conducted
using questionnaire method. By using this method we found the present
situation & the analysis & findings are described in the further.

Data Collection
1. Which type of Hero two wheeler model owned by you?
Number
1
2
2
3
4
5

Model
SPLENDOR
GLAMOUR
KARIZMA
MAESTRO
PLEASURE
IMPULSE
Total

Respondents
20
12
4
4
9
1
50

62

Using model

IMPULSE; 2%
PLEASURE; 18%
SPLENDOR ; 40%
MAESTRO; 8%
KARIZMA ; 8%
GLAMOUR; 24%

Interpretation:- From the above table it is inferred that, 40% of respondents are using splendor
and 24% of respondents using Glamour, 18% use pleasure ,8% use Karizma, 8% use Maestro
and only 2% of respondents use Impulse.
2. What is the source from which you found the advertisements about Hero Motors
NO
1
2
3
4

Source
Television
Newspapers
Radio
Hoardings
Total

Respondents
20
12
6
12
50

63

Advertisements
20
18
16
14
12
10
8
6
4
2
0
H
oa
rd
in
gs

Ra
di
o

ew
sp
ap
er
s
N

Te
le
vi
si
on

Advertisements

Interpretation:
From the above table it is very clear that most of the respondents watched the advertisements
of Hero in Televisions i.e 40% and newspapers, Hoardings combinely 48% and radio is very
less i.e 12%.

3. Who influenced you to make the purchase of Hero Motors.

A) Friends
B) Family
C)Sales People

Influencers
Friends
Family
Sales People
Total

Response
21
18
11
50

64

25
20
15
10
5
0
Friends

Family

Sales People

Interpretation:
From the above interpretation it is observed that the purchase is mostly influenced by friends
42% , family 36% and by sales people is just 22% which is the least of the others.

4.What is your preferred capacity and color about your motor cycle.
A) 100cc
B) 125cc
C)150cc
A) Red
B) Black
C)Blue

Capacity
100cc
125cc
150cc
200cc
Total

Response
5
14
20
11
50

Colour
Red
Black
Blue
Others
Total

D)200cc
D)Other

Response
12
22
10
6
50

65

preference
25
20
15

preference

10
5
0
100cc

125cc

150cc

200cc

Preferred color
25
20
15

Preferred color

10
5
0
Red

Black

Blue

Others

Interpretation:
Capacity:
From above table it is observed that most of the two wheeler users are interested in 150cc
bikes i.e 40%, 125cc is 28%, 200 cc is 22%,100cc is just 10%
Colour:
Maximum people prefer black colour 44% followed by red 24% , blue and the others
5. Are you satisfied with the delivery time of your motor cycle.
A) Yes
B) No
66

Yes
No
Total

Response
36
13
50

delivery time
40
35
30
25

delivery time

20
15
10
5
0
Yes

No

Interpretation:
From the above table it is very clear that maximum respondents are satisfied with the
delivery time of the motorcycle i.e 72% and the remaining 28% were not satisfied by the
delivery time.

6. How do you think is the reliability of the hero vehicles.

A) Excellent
B) Good
C) Average
Response
Excellent
20
Good
22
Average
6
Poor
2
Total
50

D)poor

67

Reliability
25
20
15

Reliability

10
5
0
Excellent

Good

Average

Poor

Interpretation:
From the above table it is very clear that maximum respondents feel that reliability of hero
Vehicles is excellent and good i.e 40% and 44% and 12% feel average and only 4% of
respondents feel its poor. Hero motors can take measures to improve reliability of its
vehicles to attract more customers and to satisfy the existing customers.

7. What is your level of satisfaction of service with Hero Motors

A) Excellent
B) Good
C) Average
Response
Excellent
20
Good
22
Average
6
Poor
2
Total
50

D)poor

68

service
25
20
service

15
10
5
0
Excellent

Good

Average

Poor

Interpretation:
From the above table it is very clear that maximum respondents feel that they were satisfied
with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12%
feel average and only 4% of respondents feel its poor. Hero motors can take measures to
improve the service to its customers for maintaining the maximum satisfied customers which
will bring in more customers and good word of mouth for Hero Motors.
8. What is the reason for your preference of Hero.
A) Quality
B) Fuel Efficiency
Preferences
Quality
Fuel efficiency
Economic
Good Service
Total

C) Economic D) Good service

Responses
10
20
8
12
50

69

Reason for preference

25
20
15
10
5
0
Se
rv
ic
e
G
oo
d

ic
Ec
on
om

Fu
el
ef
ci
en
cy

Q
ua
lit
y

Reason for
preference

Interpretation:
From the above table it can be concluded that maximum respondents prefer hero vehicles as
they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40%
and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can
take measures to improve the service to its customers for maintaining the maximum satisfied
customers which will bring in more customers and good word of mouth for Hero Motors.
9. From how long are you using the Hero vehicle.
A) <6months
B) 6-9 months
Usage
Less than 6 months
6-9 months
9-12 months
More that year
Total

C)9-12 months
Responses
5
10
13
22
50

D)more than year

70

usage period
25
20
15
10

usage period

5
th
at
ye
ar

M
or
e

on
th
s
912

on
th
s
m
69

Le
ss

th
an

on
th
s

Interpretation:
From the above table it can be concluded that maximum respondents i.e 44% using Hero
vehicles for more than a year and 26% of respondents using from 9-12 months, 20% using
from 6-9 moths and 10% are the new customers.
From this we can conclude that most of the hero vehicles users are using from long period .
so if hero motors concentrate on providing better service after the purchase to the customers
they will keep using the Hero vehicles for longer period.

10. How do you think Hero can improve on customer service .

A) Service in time
B)well trained mechanics
C)Less labor cost
Preference
Response
Service in time
15
Well trained mechanics
24
Less labor cost
11
Total
50

71

Improving serivce
30
25
20
15
10
5
0
la
bo
rc
os
t
Le
ss

m
d
W
el
lt
ra
in
e

Se
rv
ic
e

in

tim

ec
ha
ni
cs

Improving serivce

Interpretation:
48% of respondents feel that the customer service at hero motors can be improved by
training the mechanics and 30% feel by doing service in time, 22% feel it by providing
the service for lesser costs.
Providing the satisfying service is very essential for any company to keep its customers
satisfied. Hero must take care of all the three as they were important to increase service.

11.Which age group do you belong.

A)20-25
B)25-35
Age group
20-25 years
25-35
35-45
Above 45
Total

C) 35-45

D) above 45

Responses
5
16
21
8
50

72

Age groups

20-25 years; 10%

Above 45; 16%

25-35; 32%

35-45; 42%

Interpretation:
The maximum users of the hero vehicles belong to the age group of 35-45 followed by
25-35, 42% belong to age group of 35-45 and 32% belong to 25-35, 10 % of respondents
are between 20-25 years of age and 16 % are above 45.
From this is clear that the mid aged people are using the hero vehicles mostly. It has to
produce different models for younger population.

12. Problems faced at the time of service.

A) High spare parts cost B)Low quality
Problem faced
High spare parts cost
Low quality
Delay in service
No problems
Total

C) Delay in service
Response
10
10
14
16
50

D)No Problems

73

customer issues
18
16
14
12

customer issues

10
8
6
4
2
0
High spare parts cost

Delay in service

Interpretation:
It was very good that 32% customers not facing any problems with the service with the
hero but there were some problems faced by the customers which should mostly
concentrate. 20% feel the spare parts cost is high and 20% that the quality of service is
low, 28% feel that the service is slow.

13. Will you recommend Hero Motors to others.

A) Yes
B) No
Recommendation
Yes
No
Total

Response
41
9
50

74

Recommendation to others

No; 18%

Yes; 82%

Interpretation:
From the above responses from the customers it is clear that 82% of the respondents
would like to recommend Hero to others and only 18% dont want to recommend which is less
percentage but hero should have to take measures to convert the unsatisfied as satisfied
customers who inturn recommend hero products to others.

14. Are you satisfied with the overall service of Hero.

A) Yes
B) No
Recommendation
Yes
No
Total

Response
40
10
50

75

overall satisfaction
40
35
30

overall satisfaction

25
20
15
10
5
0
Yes

No

Interpretation:
From the above responses from the customers it is clear that 80% of the respondents were
satisfied with the overall service of the Hero motors and 20% were not satisfied hero should have
to take measures to convert the unsatisfied as satisfied customers.

76

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATIONS
PURCHASE OF 2-STROKE AND 4-STROKE BIKES:
Bikes
2-strokes

No. of Consumers
76

% age
27%

4-strokes

206

73%

TOTAL

282

4-strokes; 73%
2-strokes

4-strokes
2-strokes;
27%

INTERPRETATION:

Most of the consumers i.e. 73% want to purchase a 4-strokes bike.

Whereas, 27% consumers want to purchase a 2-strokes bike.

INFLUENCING FACTORS:
Factors

No. of consumers

%age
77

25
18
39
18

45
40
35
30
25
20
15
10
5
0

le

ily
m

s
nd

Te

en
Sa

ti s
em
A
dv
er

Fr
ie

am

39

RESPONDENTS

70
50
110
52
282

Fa

Advertisement
Sales Team
Friends
Family
TOTAL

INTERPRETATION:

Most of the consumers i.e. 39% are influenced by the friends.

25% consumers out of 282 respondents are influenced by advertisement.

18% consumers out of 282 respondents are influenced by the family.

Whereas, rest of the consumers i.e. 18% are influenced by sales team while making the
purchase decision.

RESPONSE OF THE CONSUMERS REGADING MODELS AND COLOURS:

Company
Hero Honda
Bajaj
LML
TVS
Yamaha
TOTAL

No. of models & colours

40
140
40
30
32
282

%age
14%
50%
14%
11%
11%

78

80

70

70
60
50
HERO
HONDA
NO. OF
RESPONDENTS

40BA JA J

LML

TVS

YA MA HA

30
20

20

20
15

16

10
0

INTERPRETATION:

Most of the consumers i.e. 50% like colours and models of Bajaj
motorcycles.

Whereas, equal 14% consumers like colours and models of Hero Honda
and LML motorcycles.

Moreover, rest equal 11% consumers like colours and models of TVS and
YAMAHA motorcycles.

PREFERENCE FACTOR:
Features of bikes
Power
Mileage
Low maintenance
Total

No. of consumers
136
112
34
282

% age
48%
40%
12%

79

12%
48%
40%

Power

Mileage

Low Maintenance

INTERPRETATION:

40 % consumers prefer mileage in their bike.

48 % consumers prefer power in their bike.

12 % consumers prefer low maintenance in their bike.

PREFERENCE OF BIKE REGARDING CC:

Prefer CC of bikes by
consumers
Under 100cc
100-125cc
125-150cc
150cc & above
Total

No. of consumers

% age

0
84
144
54
282

0%
30%
51%
19%

80

19%

30%
51%

Under 100cc
125-150cc

100-125cc
150cc & above

INTERPRETATION:

Most of the consumers i.e. 51% like to purchase the bike in between 125 cc and 150 cc.

And 30% of consumers like to purchase the bike in between 100 cc and 125 cc.

Whereas, rest 19% of consumers like to purchase the bike in 150 cc and above.

FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR:

Factors
Price
Average
Looks
Brand Image
Power
Pick up
Low Maintenance
After Sales Service
Total

No. of
Respondents
22
36
90
22
20
56
20
16
282

%age
8%
13%
31%
8%
7%
20%
7%
8%

81

50
45

45
40
Price

35
Average

Looks Brand Image

30

Power

Pick up

28

RESPONDANTS 25
20

18

Low Maintenance 15
After Sales Service

11

11

10

10

10

5
0

INTERPRETATION:

31% consumers out of 282 are influenced by Looks Factors (Most Influencing Factor).

20% consumers out of 282 are influenced by pick up factor.

13% consumers out of 282 are influenced by mileage.

COMPARATIVE ANALYSIS:
Brand Name
Yamaha
Hero Honda
Bajaj
TVS
LML
Others
TOTAL

No. of consumers
20
116
76
36
20
14
282

%age
7
41
27
13
7
5

82

45
40
35
30
25
CONSUMERS (in %)

20
15
10
5
0
Yamaha
Hero HondaBajaj

TVS

LML

Others

INTERPRETATION:

41% respondents out of 282 consumers like to purchase Hero Honda (Surva Guna Smpana).

27% respondents out of 282 consumers like to purchase Bajaj.

13% respondents out of 282 consumers like to purchase TVS.

7 7 % respondents out of 282 consumers like to purchase LML and YAMAHA.

POST PURCHASE ANALYSIS:

Post Purchase Behavior
Full Satisfied
Satisfied
Dissatisfied
TOTAL

No. of consumers
42
160
80
282

%age
14.89
56.74
28.37

83

15%

28%
Full Satisfied

Satisfied

57%

Dissatisfied

INTERPRETATION:

Only 15% consumers are full satisfied with their bike.

Whereas 57% and 28% consumers are satisfied and dissatisfied with their bike respectively.

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SUMMARY OF FINDINGS
1. The Hero MotoCorp is leading the market. The difference is too big to cope up with, for
any manufacturer in short span. With proven products and many people having faith in
brand, it is quite a difficult task for others to take the Heros number one position.
2. Ability to understand customers needs and wants, maintenance cost is low.
3. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number
4. The TV promotions are more influence the customer behavior of two wheeler sector.
5. The purchase desiccations of consumers are influence by friends and family.
6. Blue, Red, Black color bike with 150 cc to 200cc is fast moving.
7. Most of the despondences are agree that the bikes are delivering proper time.
8. The service provide by Hero MotoCorp is satisfied by more than 70% of customers.
9. Brand name of Hero is still good in market after split with Honda
10. Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction
11. The research showing that consumer want to get more service satisfaction.
12. Maximum of the customer likes to recommend Hero two wheeler to their friends, its
shows they are satisfied with the bike.
13. Hero MotoCorp wrapped up with sales of 6.25 million bikes and scooters, considerably
ahead of its former Japanese partners tally of 3.72 million units

SUGGESTIONS AND RECOMMENDATIONS

It is very hard to hold the pulse of a customer in the market. Customers satisfaction is different
for different people at different situations;

85

Majority of the respondents were still unaware about different versions of Hero bikes.
Therefore I suggest the company personals should take initiative to create awareness
about these versions.

Few of the customers expressed concern over frequency of the maintenance & service
problems faced by their vehicle and expressed high satisfaction over it. Therefore, I
suggest them to re look at the vehicle & re-develop in order to stop the frequency of these
problems.
Hero MotoCorp want to give more importance in there service part its include timely
service, and quality of service
Hero want to develop more promotion for there some models like sports bike and gear less
scooter
Hero bikes can concentrate to increase their export market
Hero MotoCorp Ltd should try to give more advertisements in news paper, bill boards in
that area to enable easy recall of the people for Hero MotoCorp Ltd.
Hero Motors can also increase models attracting the Indian youth.

CONCLUSION
Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived
by customers as important as the primary product or service your organization offers.
For making a better relationship with customer they always use genuine parts in their product.
And after selling they have the services and maintenances. Their constant endeavor is to support
the company's mandate of providing highest level of customer satisfaction by taking good care of

86

customers two-wheeler service and maintenance through their vast network of more than 2100
committed dealers and service outlets spread across the country.
Apart from that hero MotoCorp Ltd focused on cleanliness and other aesthetics of the service
stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance
the in house experience of the customers at those customer touch point. To ensure that millions
of customers in the rural area are not left waiting for adequate service as it is impossible for the
company to introduce service station at every nook and corner of the country, mobile service
stations are regularly arranged with prior intimation to public about the rout that the mobile
workshop would take when passing through that region so that customers can come and get their
two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus
retaining customers.

Questionnaire
1.Which type of Hero two wheeler model owned by you?
A) Splendor

B)Glamour

c)Passion

E) Impulse

F)Maestro

G) Pleasure

D)Karizma

2. What is the source from which you found the advertisements about Hero Motors
87

A) Television

B)Newspapers

C)Radio

D)Hoardings

3. Who influenced you to make the purchase of Hero Motors.

A) Friends

B) Family

C)Sales People

4. What is your preferred capacity and color about your motor cycle.
A) 100cc

B) 125cc

C)150cc

D)200cc

A) Red

B) Black

C)Blue

D)Other

5. Are you satisfied with the delivery time of your motor cycle.
A) Yes

B) No

6. How do you think is the reliability of the hero vehicles.

A) Excellent

B) Good

C)Average

D)poor

7. What is your level of satisfaction of service with Hero Motors

A) Excellent

B) Good

C) Average

D)poor

8. What is the reason for yout preference of Hero.

A) Quality

B) Fuel Efficiency

C) Economic

9. From how long are you using the Hero vehicle.

A) <6months

B) 6-9 months

C) 9-12 months

D) more than year

10. How do you think Hero can improve on customer service?

A) Service in time

B) well trained mechanics

C) Less labor cost

11. Which age group do you belong?

A) 20-25

B) 25-35

C) 35-45

D) above 45

12. Problems faced at the time of service.

A) High spare parts cost B) Low quality

C) Delay in service

D) No Problems

13. Will you recommend Hero Motors to others?

A) Yes

B) No

14. Are you satisfied with the overall service of Hero?

A) Yes

B) No

88

REFERENCES

In this project while finalizing and for analyzing quality problem in detail the
following books, magazines and websites have been referred.
Books Consulted:

Marketing Management Philip Kotler

Research Methodology Kothari

Business Statistics S.P. Gupta

89

Magazines Consulted:

Indian Journal of Marketing

IBAT Journal of Management

Journal of Indian Management & Strategy

Auto Expo of India

Newspapers:

Hindustan times

Times of India

The Hindu

Financial Express

Economics times

BIBILOGRAPHY
http://www.ibef.org/industry/india-automobiles.aspx
http://en.wikipedia.org/wiki/Hero_MotoCorp
http://www.heromotocorp.com/en-in/

www.bajajauto.com
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www.herohonda.com
www.lml.com
www.yamaha.com
www.google.com

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