A CASE STUDY ON CONSUMER PERCEPTION TOWARDS AFTER SALES SERVICE WITH REFERENCE TO HERO HONDA

CONTENTS
CHAPTER I
Introduction 1. objectives of study 2. need for study

CHAPTER II
1. Review of Concepts

CHAPTER III
REASEARCH METHODOLOGY 1. Source of data 2. Sample size 3. Period of study 4. Areas selected for study 5. Limitation of the Study

CHAPTER IV
1. Industry profile 2. Company profile

CHAPTER V
DATA ANALYSIS AND INTERPRETATION

Chapter VI
1. Findings 2. Suggestions 3. Conclusion BIBLIOGRAPHY ANNEXURE QUESTIONNAIRE

CHAPTER I

1. INTRODUCTION
The present study was conducted in order to know the perception of the customer with respect to after sales services provided by the Hero honda motors and to gauge the satisfaction of its consumers. Every customer tends to develop a certain image of the company after using the product. In this process, After Sales Services of the company also plays a major role. The complaints lodged by the customer if duly attended to and given a service in such a manner so that the product is trouble free for a considerable period of time, the customer feels satisfied and tends to become loyal to the company.

If a company endeavors to determine the perception of customer towards the product after having used it for a certain period, this information can provide valuable information to a company to improve its product in terms of features and other attributes. This is essential because every company aims at growth and when a company is growing, simultaneously the image of the company or the brand becomes important and the image keeps on growing. When the image of the company grows, the expectations of the customer from the company also grow.

AFTER SALES SERVICE CONSISTS OF: Delivery Installation Demonstration Repairs Warranty Courteous attention towards customer complaints etc.

1. Objectives of study

To know the over all perception of the service offered by hero Honda motors service centers To determine the quality of service extended at the workshop. To determine the ease in availability of service at the service station. To identify & suggest measures for improving the quality of service provided at the workshop.

2. NEED FOR STUDY

With the entry of giant multinational automobile companies, the present Indian automobile industry is facing a stiff competition. As automobiles require a continuous service and maintenance, the companies have to focus on the satisfaction of the customers regarding the service. This became an important factor in determination of the companies growth and ability to retain customers.

Customers are not expecting just the service by which they can fulfill their needs alone, but they prefer the element of quality in the service. This has made the companies to focus on the information of customers perception regarding the vehicle service. To fulfill the information requirements of the company, the project work gathers, analyzes the customers views and expectation.

Hence, provision of after sales service alone can not help the firm to pass out in the market place established with stiff competition. Rather, the company has to provide quality service that gives the customer higher serviced value for its role to play in the market. Hence, companies need to improve their service quality levels that best suits to the customer satisfaction.

CHAPTER II

REVIEW OF CONCEPTS

CONSUMER PERCEPSTION OF AFTER SALES SERVICE

Perception:

Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful

Perception can be described as how we see the world around us. Two individuals may be subject to the same stimuli under the same apparent conditions, but how each person recognizes them, selects them , organizes them, and interprets them is a highly individual process based on each persons own needs, values and expectations and coherent picture of the world.

A stimulus is any unit of input to any of the senses. Examples of stimuli (i.e., sensory input) include products packages, brand names, advertisements, and commercials. Sensory receptors are the human organs (i.e., the eyes, ears, nose, mouth, and skin) that receive sensory inputs. Their sensory functions are to see, hear, smell, taste, and feel. All of these functions are called into play either singly or in combination in the evaluation and use of most consumer products.

The study of perception is largely the study of what we subconsciously add to or subtract from raw sensory inputs to produce our own private picture of the world.

Sensation:

Sensation is the immediate and direct response of the sensory organs to simple stimuli (an advertisement, a package, a brand name). Human sensitivity refers to the experience of sensation. Sensitivity to stimuli varies with the quality of an individuals sensory receptors (e.g., eyesight or hearing) and the amount or intensity of the stimuli to which he or she is exposed.

Sensation itself depends on energy change (i.e., differentiation of input). A perfectly bland or unchanging environment-regardless of the strength of the sensory input provides little or no sensation at all.

As sensory input decreases, however, our ability to detect changes in input or intensity increases, to the point that we attain maximum sensitivity under conditions of minimal stimulation.

The Absolute Threshold:

The lowest level at which an individual can experience a sensation is called the absolute threshold. The point at which a person can detect a difference between something and nothing is that persons absolute threshold for that stimulus.

The Differential Threshold:

The minimal difference that can be detected between two similar stimuli is called the differential threshold, or the j.n.d. (for just noticeable difference). A 19th century German scientist named Ernst Weber discovered that the just noticeable difference between two stimuli was not an absolute amount, but an amount relative to the intensity of the first stimulus.

Webers Law: as it has come to be known, states that the stronger the stimulus, the greater the additional intensity needed for the second stimulus to be perceived as different.

According to Webers law an additional level of stimulus equivalent to the j.n.d. must be added for the majority of people to perceive a difference between

the resulting stimulus and the initial stimulus. Webers law holds for all the senses and for almost all intensities. Subliminal perception:

People being motivated below their level of conscious awareness. People are also stimulated below their level of conscious awareness; that is, they can perceive stimuli without being consciously aware that they are doing so. The threshold for conscious awareness or conscious recognition appears to be higher than the absolute threshold for effective perception.

Stimuli that are too weak or too brief to be consciously seenor heard may nevertheless be strong enough to be perceived by one or more receptor cells. This process is called subliminal perception because the stimulus in beneath the threshold, or limen,of awareness, though obviously not beneath the absolute threshold of the receptors involved. (Perception of stimuli that are above the level of conscious awareness is called supraliminal perception.)

In general, there are three types of subliminal perception: (1) Briefly presented visual stimuli, (2) Accelerated speech in low-volume auditory messages, and (3) Embedded or hidden imagery or words (often of a sexual nature) in print ads or on product labels.

Embeds are defined as disguised stimuli not readily recognized by readers that are planted in print advertisements to persuade consumers to buy their products.

Perceptual Selection:

Consumers subconsciously exercise a great deal of selectivity as to which aspects of the environment-which stimuli-they perceive. An individual may look at some things, ignore others, and turn away from still others. In actuality, people receive or perceive only a small fraction of the stimuli to which they are exposed.

Which stimuli get selected depends on two major factors in addition to the nature of the stimulus itself: consumers previous experience as it affects their expectations (what they are prepared, or set, to see) and their motives at the time (their needs, desires, interests, and so on.) Each of these factors can serve to increase or decrease the probability that a stimulus will be perceived.

Nature of the stimulus: Marketing stimuli include an enormous number of variables that affect the consumers perception such as the nature of the product, its physical attributes, the package design, the brand name, the advertisements and commercials (including copy claims, choice and sex of model, positioning of

model, size of ad, and typography), the position of a print ad or the time of a commercial, and the editorial environment.

In general, contrast is one of the most attention-compelling attributes of a stimulus. Advertisers often use extreme attention-getting devices to achieve maximum contrast and thus penetrate the consumers perceptual screen.

Expectations: People usually see what they expect to see, and what they expect to see is usually based on familiarity, previous experience, or preconditioned set. In a marketing context, people tend to perceive products and product attributes according to their own expectations.

Motives: People tend to perceive things they need or want; the stronger the need, the greater the tendency to ignore unrelated stimuli in the environment. A woman interested in a portable computer is more likely to notice and to read carefully ads for computer laptops than her neighbor, who does not use a computer. In general, there is a heightened awareness of stimuli that are relevant to ones needs and interests, and a decreased awareness of stimuli that are irrelevant to those needs. An individuals perceptual process simply attunes itself more closely to those elements in the environment that are important to that person. Someone who is hungry is more likely to spot a restaurant sign; a sexually repressed person may perceive sexual symbolism where none exists.

Important Selective perception Concepts:

As the preceding discussion illustrates, the consumers Selection of stimuli from the environment is based on the interaction of expectations and motives with the stimulus itself. These factors give rise to number of important concepts concerning perception. 1. Selective Exposure 2. Selective Attention 3. Perceptual Defense 4. Perceptual Blocking

Product and Service Images:

The image that a product or service has in the mind of the consumer that is, its positioning is probably more important to its ultimate success than are its actual characteristics. Marketers try to position their brands so that they are perceived by the consumer as fitting into a distinctive niche in the marketplace a niche occupied by no other product. They try to differentiate their products by stressing attributes that they claim will fulfill the consumers needs better than competing brands. They strive to create a product image consistent with the relevant self-image of the targeted consumer segment.

Perceived Quality of Products:

Cues that are intrinsic concern physical characteristics of the product itself, such as size, color, flavor, or aroma. In some cases, consumers use physical characteristics to judge product quality.

Perceived Quality of Services:

It is more difficult for consumers to evaluate the quality of services than the quality of products. This is true because of certain distinctive characteristics of services: they are intangible, they are variable, they are perishable, and they are simultaneously produced and consumed. AFTER-SALES SERVICE: Introduction:

Historically, after-sales service was regarded in most manufacturing companies as a necessary evil- as a supporting but relatively minor function in the overall structure of the organization. This also applies in some degree to the channels-in case of industrial products, it will usually be the manufacturer who provides service, whilst for many consumer and the other types of goods it is the responsibility of the retailer, dealer or agent.

While it was realized that it was important to provide a reasonable level of after-sales service, the role and function of service was generally viewed purely as a cost-center. It may well have been the last area for development and investment in many organizations. Changes came about as a result of increasing consumer pressure and more intense competition. As consumers grew more sophisticated, they became less willing to accept poor quality goods and services. Consumer protection legislation forced firms to take responsibility for after-sales service, but, at the same time, started to realize that by offering guarantees and service warranties they could enhance their competitive position.

This applies not only to providers of actual goods but to service providers as well. Bad publicity resulting from poor after-sales service can be the fastest way of losing their customer. A service oriented approach: Some companies anticipated this, and invested in after-sales service consistently. They were able to establish a leading competitive position based on their reputation for fair and unparalleled service. In the last few years there has been increasing corporate awareness of the strategic importance and value of service both as a profit center and as a marketing tool.

As this awareness has become established, there has been a considerable increase in the resources being made available to maximize its value to the overall profitability, directly and indirectly, of the company. It would be hard to imagine buying a car, a washing machine, or any other major purchase without some form of guarantee that long-term service will be available promptly. After-sales service has been a part of the augmented product for so long now that it is no longer a special feature - consumers demand it.

The product concept and after-sales service: The product concept describes all products as being made up in more than one stage or level: Level 1: The core product Level 2: The physical or expected product Level 3: The augmented product

The core product relates to the products function in terms of the consumer need, which it will satisfy. A television will provide the use of entertainment to the whole family. The physical or expected product describes the actual shape, form, and features provided by the product. In considering televisions, attention would be paid to such aspects as variety of types available, sizes, colour options, ease of use and so on.

The augmented product relates to the (often-intangible) features that provides of goods and services endeavor to incorporate into their products to make them stand out from the competition. In the case of televisions, a remote controller might have been part of the augmented product twenty years ago. If it was perceived to be extra by the potential customer it could help to differentiate the firms offering from the competition. Of course, a remote controller is taken for granted now, and has become part of the physical product. The consumer expects and demands it as a feature. Similarly, firms have built intangible qualities into the augmented product, which are now taken for granted. One-year guarantees have been superseded by three and five year guarantees. Company name and image plays a more important role as mass advertising can be used to reinforce images of quality, strength and durability. Brand image is one of the most important intangible features, which can influence consumer-buying decisions.

Service value and market share:

In substance, the quality, image and responsiveness of the service organization supporting the manufacturer or supplier of goods and services can significantly influence the decision to buy and thus gain the market share. Many major suppliers of computers, cars and goods and services for industrial and consumer markets place great emphasis on the quality, performance and

responsiveness of their service operations. They actively highlight service performance and responsiveness in sales, advertising and marketing efforts. In many cases, not only are such organizations able to gain and control market share, but they are also able to charge a premium price for the products sold. This has come about as a result of a high degree of emphasis on service as a strategy aimed at both market perception and actual service delivery.

Experience in a number of markets, including data processing, office automation, telecommunication, medical, electronics and health care for example indicates quite clearly that the market will pay a premium price of up to 20% over its competitors in order to deal with a supplier with a high service image of quality and responsiveness.

Customer satisfaction and its role in the buying process:

Manufacturers, retailers and all types of marketing organization are now involved in massive campaigns to improve their quality of service and its profitability by ensuring customer satisfaction.

A large number of independent market studies have clearly shown that customers place considerable value on the quality and responsiveness of the service organization, as well as the reliability and availability of the equipment itself, in making the decision to purchase from one supplier versus another. In

over fifty separate product studies carried out by just one group in a wide variety of markets, it was found that issues of service are significantly more important than the product price and product features in the final purchase decision.

In essence, models of the buying decision process show the typical purchaser will screen out all non-responsive suppliers (i.e. those whose price and features/capabilities do not meet needs). The remaining acceptable suppliers are then usually chosen on the basis of service responsiveness and quality. In a study of over 3000 users of data processing, office automation and telecommunications equipment, the key importance of service and service related issues in the decision to buy were measured. In this particular study of the information technology market users were asked to place a weighting, on a scale of 1-9 (with 9 being the most important), as to the factors utilized to influence the buy decision.

The results can be briefly summarized as follows:

1. The highest rating factor was reliability of the equipment followed by service response time and capability of service organization, all weighed higher than 8. 2. Four further factors relating to service (e.g. speed of parts delivery were weighed between 7 to 8). 3. The actual cost of the equipment was given an importance rating of only 6.5, slightly higher than the cost of service at 6.4.

4. Only delivery times and instruction/training were weighed lower than this.

Clearly, as this study related to the type of products where technical service support would be seen as essential-telecommunications and computer equipment, the results are perhaps not too surprising. However, for many consumer purchase decisions these factors rate highly in importance in exactly the same way. The more technical a product in the customers perception, the greater the importance attached to after-sales service.

CUSTOMER CARE PROGRAMMES:

Service organizations are particularly dependent on levels of customer care, as the people element in the marketing mix reflects. Customer care can play an equally important role, however, in the manufacturing, production and other organizations providing goods and services.

For customer care programs to be successful, they need to span the entire organization. Training will not work if it is on a piece meal basis and should be supported all the way from top management.

Superficial attempts to develop customer care levels will undoubtedly lead to failure. Research among customers of computing and database services highlighted that only three of the top six suppliers scored consistently high marks

across a range of service criteria even though all six claimed to have carried out customer care training. The size of the organization is no guarantee of customer care quality frequently; smaller companies demonstrate a more conscientious approach to individual customers. Customer care programmes will typically be comprised of six main stages, as follows:

1. 2.

Objective setting: Define the programme objectives. Current situation analysis: Conduct a customer service audit-internally and externally. Strategy development: Develop a strategy for raising levels of customer service from current to desired standard. Functional planning: Define training needs and other requirements (problem solving sessions or team building, for example) to execute the strategy.

3.

4.

5.

Implementation:

Implement

training

and

other

initiatives

through

workshops, seminars. Promote the programme both internally and externally. Develop internal marketing programmes.
6.

Monitoring: Test results through customer and employee surveys, evaluate the training methods. Improve and update the programmes on a continuous basis.

Evaluating customer care programmes can be extremely can be extremely difficult, in terms of their overall value to the company or their impact on profitability. Methods include using customer complaints. After-sales service and customer care represent key means of differentiating a service or product offering from the competition. Many aspects of service

delivery are not solely the domains of service organization but are of equal importance to manufacturing and other types of organizations. After-sales can play a key role in ensuring the long-term credibility of company and brand image through the quality or routine installation, maintenance and repair services as well as the organizations response to crises such as contamination scares and product recalls. Customer satisfaction studies illustrate the after-sales service quality, response times and similar factors were ranked more highly in industrial buying decisions than price and equipment specification. Organizations in all market sectors must continuously build and maintain service quality through customer care programmes. These should be implemented out the whole organization, emphasizing further the need for organizations to develop a customer and marketing orientation that is integrated and flexible.

CHAPTER III

REASEARCH METHODOLOGY
1. Source of Data
The information present in this report has been drawn both from primary and secondary data. PRIMARY DATA: Almost all of the information presented in the report is primary data, i.e., the data collected from the market. The primary data has been collected through a structured questionnaire. The company has provided the database of the target customers in the twin cities. The data has been collected from the customers who had purchased bikes from Hero Honda motors during the period 2006 -2008. SECONDARY DATA Secondary data has been collected from various sources such textbooks, articles in magazines and websites.

2. SAMPLE SIZE
A sample of 100 customers was selected from the service centers that are located in the twin cities using simple random sampling technique.

3. PERIOD OF STUDY
The universe for the study consisted of customers who had purchased Bikes from Hero Honda motors during the period 1st Jan to 20th feb2008.this was because the company was targeting those customers who had purchased their bikes more than four years earlier (from the time of the study) and had already availed of the free services provided.

4. AREAS SELECTED FOR STUDY

The twin cities areas of Hyderabad and secunderabad are been covered and the service stations that are located in these area are been taken up for the purpose of study.

5. LIMITATIONS OF THE STUDY

The present study is however, subjected to certain limitations which are as follows: 1. Geographic Scope: The sample used for the study has been taken from the HERO HONDA MOTERS customers of the twin cities of Hyderabad and Secunderabad.

2. Frame Error: The sampling frame (i.e., the list of population members) from which the sample units are selected was incomplete as it takes into consideration only those customers (target customers) who have made their purchases during the period 2004-2008.

3.

Although adequate care was taken to elicit the accurate information from

the respondents, some of them have felt difficulty in crystallizing their feelings into words. Despite the above limitations, the study is useful in that it does point out the trend and helps to identify the dimensions for improving the after sales service function by the company in question.

CHAPTER IV

INDUSTRY PROFILE
AUTOMOBILE INDUSTRY IN INDIA Automobile Industry in India has witnessed a tremendous growth in recent years and is all set to carry on the momentum in the near future. Indian automobile industry has come a long way since the first car ran on the streets of Bombay in 1898. Today, automobile sector in India is one of the key sectors of the economy in terms of the employment. Directly and indirectly, it employs more than 10 million people and if we add the number of people employed in the autocomponent and auto ancillary industry then the number goes even higher.

The automobile industry comprises of heavy vehicles (trucks, buses, tempos, tractors); passenger cars; and two-wheelers. Tata-Telco, Ashok Leyland, Eicher Motors, Mahindra and Mahindra, and Bajaj dominate heavy vehicles section. The major car manufacturers in India are Hindustan Motors, Maruti Undo, Fiat India Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Hyundai Motors India Ltd., and Skoda India Private Ltd., Toyota Motors, Tata Motors etc. The dominant players in the two-wheeler sector are Hero Honda, Bajaj, TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., and Yamaha etc.

In the initial years after independence, Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car

segment was a 1940s Morris model called the Ambassador and a 1960s Suzukiderived model called the Maruti 800. The automobile sector in India underwent a metamorphosis because of the liberalization policies initiated in the 1991. Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played a vital role in turning around the Indian automobile industry. Until the mid 1990s, the Indian auto sector consisted of just a handful of local companies. However, after the sector opened to foreign direct investment in 1996, global majors moved in. Automobile industry in India also received an unintended boost from stringent government auto emission regulations over the past few years. This ensured that vehicles produced in India conformed to the standards of the developed world. Indian automobile industry has matured in last few years and offers differentiated products for different segments of the society. It is currently making inroads into the rural middle class market after its inroads into the urban markets and rural rich. In the recent years, Indian automobile sector has witnessed a slew of investments. India is on every major global automobile player's radar. Indian automobile industry is also fast becoming an outsourcing hub for automobile companies worldwide, as indicated by the zooming automobile exports from the country. Today, Hyundai, Honda, Toyota, GM, Ford and Mitsubishi have set up their manufacturing bases in India. Due to rapid economic growth and higher disposable income, it is believed that the success story of the Indian automobile industry is not going to end soon. Some of the major characteristics of Indian automobile sector are:

Second largest two-wheeler market in the world. Fourth largest commercial vehicle market in the world. 11th largest passenger car market in the world Expected to become the world's third largest automobile market by 2030, behind only China and the US.

COMPANY PROFILE
The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle - Splendor. This festive season, the company sold half a million two wheelers in a single month-a feat unparalleled in global automotive history.

Hero

Honda

bikes currently roll out from

two globally benchmarked

manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of churning out 3.9 million bikes per year. A third state of the art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian two-wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal,

the Chairman, Hero Honda Motors succinctly points out, "We pioneered Indias motorcycle industry, and it's our responsibility now to take the industry to the next level. We will do all it takes to reach there.''

HERO HONDA'S MISSION

Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stakeholders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

SALES PERFORMANCE HERO HONDA ONCE AGAIN OUTPERFORMS INDUSTRY ON GROWTH IN Q2 (FY 2007-2008) Impressive performance across segments turnover of Rs. 2391 Crores in Q2 Ebidta of 12.39% Aug06 Aug07 FY 06-07 FY 07-08 Total Sales 2, 15,076 2, 40,875 12, 82,860 12, 63,254

Recap of Q2

Hero Honda bucked the industry growth trend, posting better than industry results in the last quarter

Its market share in motorcycles in the domestic market has grown upward of 50%

New launches including refreshed Passion Plus and Super Splendor reported good numbers

The brand Hero Honda awarded the most preferred two-wheeler brand at the CNBC Awaaz Awards

New Delhi, October 18, 2007: Hero Honda Motors Ltd., the world's largest twowheeler manufacturer, reiterated its undisputed leadership by reporting betterthan-industry performance in Q2 (FY 2007-08). The company clocked 7,56,633 units of two wheeler sales during the period. Hero Honda's cumulative sales for the period April 07 September 07 stood at 15, 59,486 units.

In the second quarter (July-September) this year, the company reported a Net Profit of Rs 204.33 crores , as against Rs. 215.97 crores in the corresponding period last year. Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 2391.36 crores, a growth of 4.5% over Rs. 2289.44 crores recorded in the corresponding period last year. The company has recorded an EBIDTA margin of 12.39% in the quarter. The EBIDTA margin in the previous quarter (Apr-Jun'07) was 10.76%.

In the first six months (April-September) of this financial year, the company reported a Net Profit of Rs 394.17 crores, as against Rs. 453.71 crores in the corresponding period last year. Total Turnover (sales turnover plus other income, net of excise) grew to Rs. 4878.26 crores, a growth of 3.7% over Rs. 4706.09 crores recorded in the corresponding period last year.

Hero Honda's strategy for aggressive top line growth through market share gain across segments has paid off well. Despite the slowdown in the two wheeler industry, Hero Honda's share in the domestic motorcycles market has grown

upward of 50%. The company has been successful in maintaining its strong growth momentum across segments.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., The last few months have been a disappointment for the auto industry with rising interest rates hurting sales. However, we have been able to post better than industry figures. During the last six months, we fulfilled our commitment to the customers by providing latest technologies and style in our models. We have launched five new products in this period - Splendor NXG, refreshed Pleasure, the new Super Splendor, new Passion Plus and of course our most recent launch Hunk.

Mr. Pawan Munjal, Managing Director and CEO, Hero Honda Motors Ltd, said We have been focusing on cost management across functions. There has also been some respite in input costs such as aluminum during the last quarter. Our financial numbers in Q2 (July 07 September 07) reflect these developments. As for the future, a lot will depend on the interest rates movement, and commodity prices.

Last week, Hero Honda achieved yet another milestone of two crore bikes. In a country of a billion people, it signifies a Hero Honda bike in every 50 people. To commemorate this momentous occasion Hero Honda has launched BIKE-ATHON a marathon of bikes flagged off from eight cities across the country, which will converge near Delhi towards the end of this month. This achievement

is indeed reflective of the strength of our brands and the trust that Hero Honda has built amongst its customers over the years.

The sales numbers for the month of September represent a good start to the forthcoming festival season. The company expects to keep up the momentum and further build on this platform going forward.

PRODUCTS

HERO HONDA HUNK

PASSION PLUS

Hero Honda Karizma

Hero Honda CD Dawn

Hero Honda CD Deluxe

Hero Honda Glamour

Hero Honda Pleasure

Hero Honda Super Splendor

CHAPTER V
DATA ANALYSIS AND INTERPRETATION

GENDER
Cumulative Percent 90.5 100.0

Valid

MALE FEMAL E Total

Frequency 86 9 95

Percent 90.5 9.5 100.0

Valid Percent 90.5 9.5 100.0

GENDER

MALE FEMALE

From the above table we know that most of the customers are male with 90.5% and 9.5% are female.

AGE

Frequency Valid LESS THAN 20 20-25 25-30 ABOVE 30 Total 4 51 17 23 95

Percent 4.2 53.7 17.9 24.2 100.0

Valid Percent 4.2 53.7 17.9 24.2 100.0

Cumulative Percent 4.2 57.9 75.8 100.0

AGE

LESS THAN 20 20-25 25-30 ABOVE 30

The above graph says about the age group of customers who mostly use the

Hero Honda and the result says that, Most of the customers are between the age of 20-25(53.7%) and 24.2% are above 30years and 17.5% comes in the age group of 25-30 and 4.2% of them below 20years

QUALIFICATION

Valid

GRADUATES POST GRADUATES PROFESSIO NAL Total

Frequency 31 30 34 95

Percent 32.6 31.6 35.8 100.0

Valid Percent 32.6 31.6 35.8 100.0

Cumulative Percent 32.6 64.2 100.0

QUALIFICATION

GRADUATES POST GRADUATES PROFESSIONAL

The above table says that the customers who use the Hero Honda are mostly

professionals with 35.8%, and then comes the graduates with that of 32.6% and postgraduates with 31.6%.

VEHICAL
Cumulative Percent 17.9 47.4 61.1 67.4 76.8 81.1 86.3 97.9 100.0

Valid

SPLENDER PASSION PLUS CBZ KARIZMA PLEASURE GLAMOUR SUPER SPLENDER CD DOWN HUNK Total

Frequency 17 28 13 6 9 4 5 11 2 95

Percent 17.9 29.5 13.7 6.3 9.5 4.2 5.3 11.6 2.1 100.0

Valid Percent 17.9 29.5 13.7 6.3 9.5 4.2 5.3 11.6 2.1 100.0

VEHICAL

SPLENDER PASSION PLUS CBZ KARIZMA PLEASURE GLAMOUR SUPER SPLENDER CD DOWN HUNK

The above graph depicts about the most successful vehicle of hero Honda that the customers have purchased and the table says that 29.5% use passion plus, 17.9 use splendor, 13.7 use CBZ, 9.5 use pleasure and 11.6% use cd Dawn and Karisma, Glamour, Super Splendor, Hunk respectively.

PURCHASE
Frequency 26 32 26 9 2 95 Percent 27.4 33.7 27.4 9.5 2.1 100.0 Valid Percent 27.4 33.7 27.4 9.5 2.1 100.0 Cumulative Percent 27.4 61.1 88.4 97.9 100.0

Valid

2004 2005 2006 2007 2008 Total

PURCHASE

2004 2005 2006 2007 2008

The above data says that most of the people have purchased their vehicle in the year 2005 i.e., 33.7%, and 27.4% say that they have purchased in the year 2004

and 9.5% in 2007.

QULITY OF A WORK PERFORMED

Valid

POOR FAIR GOOD VERY GOOD EXCELEN T Total

Frequency 1 7 54 31 2 95

Percent 1.1 7.4 56.8 32.6 2.1 100.0

Valid Percent 1.1 7.4 56.8 32.6 2.1 100.0

Cumulative Percent 1.1 8.4 65.3 97.9 100.0

QULITY OF A WORK PERFORMED

POOR FAIR GOOD VERY GOOD EXCELENT

The above graph says about the quality of work performed by the mechanics at the service station and most of the customers feel that as respectively. 56.8%

say GOOD, 32.6% say VERY GOOD, 7.4% say FAIR, 2.1 say EXCELLENT and 1.1 say POOR.

MAKING YOU FEEL COMFORTABLE

Valid

FAIR GOOD VERY GOOD EXCELEN T Total

Frequency 18 49 25 3 95

Percent 18.9 51.6 26.3 3.2 100.0

Valid Percent 18.9 51.6 26.3 3.2 100.0

Cumulative Percent 18.9 70.5 96.8 100.0

MAKING YOU FEEL COMFORTABLE

FAIR GOOD VERY GOOD EXCELENT

The above table says about the employees at the service centers are making the customers feel comfortable and easy and the result shows that, 51.6% say that the comfort ness is GOOD, 26.3 say VERY GOOD, 18.9% say FAIR, and 3.2% say EXCELLENT

FRENDLINESS AND HELPFULLNESS OF CASHIERS

Cumulative Percent 4.2 26.3 77.9 97.9 100.0

Valid

POOR FAIR GOOD VERY GOOD EXCELEN T Total

Frequency 4 21 49 19 2 95

Percent 4.2 22.1 51.6 20.0 2.1 100.0

Valid Percent 4.2 22.1 51.6 20.0 2.1 100.0

FRENDLINESS AND HELPFULLNESS OF CASHIERS

POOR FAIR GOOD VERY GOOD EXCELENT

The above graph depicts that about the character of cashier who are working in hero Honda service centers most of the respondents feel that cashiers are help full About Friendliness and helpfulness, 51.6%say GOOD where as 22.1% ay FAIR and 20.00% say VERY GOOD and .2% says poor.

HAVING CONVINIENT HOURS OF SERVICE

Valid

FAIR GOOD VERY GOOD EXCELLE NT Total

Frequency 16 56 19 4 95

Percent 16.8 58.9 20.0 4.2 100.0

Valid Percent 16.8 58.9 20.0 4.2 100.0

Cumulative Percent 16.8 75.8 95.8 100.0

HAVING CONVINIENT HOURS OF SERVICE

FAIR GOOD VERY GOOD EXCELLENT

The above table shows how the service stations offer convenient hours of service and the survey results say that they offer a good time and the results are below. 58.6% say GOOD,20% say VERY GOOD, 16.8% say FAIR and 4.2% says its EXCELLENT.

EASE OF OBTAINING AN APPOINTMENT

Valid

POOR FAIR GOOD VERY GOOD EXCELLE NT Total

Frequency 2 23 45 19 6 95

Percent 2.1 24.2 47.4 20.0 6.3 100.0

Valid Percent 2.1 24.2 47.4 20.0 6.3 100.0

Cumulative Percent 2.1 26.3 73.7 93.7 100.0

EASE OF OBTAINING AN APPOINTMENT

POOR FAIR GOOD VERY GOOD EXCELLENT

The above table says about how the employee is ready to obtain an appointment from the customer and we came to know that 47.4% say its GOOD, 24.2% say its FAIR, 20% say VERY GOOD, 6.3% say EXCELLENTE and 2.1% say its POOR.

PROMPTNESS IN HANDLING REPAIR WORKS

Cumulative Percent 12.6 42.1 91.6 96.8 100.0

Valid

FAIR GOOD VERY GOOD EXCELLE NT N/A Total

Frequency 12 28 47 5 3 95

Percent 12.6 29.5 49.5 5.3 3.2 100.0

Valid Percent 12.6 29.5 49.5 5.3 3.2 100.0

PROMPTNESS IN HANDLING REPAIR WORKS

FAIR GOOD VERY GOOD EXCELLENT N/A

The graph depicts about the character of the mechanic in handling the repair works at the service station and most of the respondents feel that and as majority as 49.5% say its VERY GOOD, 29.5% Say its GOOD, 12.6% say its FAIR, 5.3% say its EXCELLENT and 3.2 say N/A.

ARRANGING REPLACEMENTS

Valid

FAIR GOOD VERY GOOD EXCELLE NT N/A Total

Frequency 6 10 50 27 2 95

Percent 6.3 10.5 52.6 28.4 2.1 100.0

Valid Percent 6.3 10.5 52.6 28.4 2.1 100.0

Cumulative Percent 6.3 16.8 69.5 97.9 100.0

ARRANGING REPLACEMENTS

FAIR GOOD VERY GOOD EXCELLENT N/A

The table depicts about the service station in arranging replacements and majority of the respondents feel that and result say that, 52.6 say VERY GOOD, 28.4% say EXCELLENT, 10.5% say GOOD, and 6.3% say fair.

PERFORMANCE OF REPAIRS

Valid

POOR FAIR GOOD VERY GOOD EXCELLE NT Total

Frequency 2 10 31 47 5 95

Percent 2.1 10.5 32.6 49.5 5.3 100.0

Valid Percent 2.1 10.5 32.6 49.5 5.3 100.0

Cumulative Percent 2.1 12.6 45.3 94.7 100.0

PERFORMANCE OF REPAIRS

POOR FAIR GOOD VERY GOOD EXCELLENT

The above graph says about the character of mechanics in performing repair works and most of the respondents feel that the mechanics are performing the repairs well,. 49.5% say VERY GOOD, 32.6% say GOOD, 10.5% say FAIR, 5.3% say EXCELLENT, and 2.1% say POOR.

CLEAN AND COMFORTABLE WAITING AREA

Cumulative Percent 2.1 20.0 49.5 90.5 100.0

Valid

POOR FAIR GOOD VERY GOOD EXCELLE NT Total

Frequency 2 17 28 39 9 95

Percent 2.1 17.9 29.5 41.1 9.5 100.0

Valid Percent 2.1 17.9 29.5 41.1 9.5 100.0

CLEAN AND COMFORTABLE WAITING AREA

POOR FAIR GOOD VERY GOOD EXCELLENT

The above data says about the service centers of Hero Honda do maintain a clean and comfortable waiting area and most of the respondents feel yes, they do maintain a clean area. 41.1% its VERY GOOD, 29.5% say its GOOD, 17.9% say Fair and 2.1% say POOR.

ON TIME DELIVERY
Cumulative Percent 2.1 15.8 45.3 78.9 100.0

Valid

POOR FAIR GOOD VERY GOOD EXCELLE NT Total

Frequency 2 13 28 32 20 95

Percent 2.1 13.7 29.5 33.7 21.1 100.0

Valid Percent 2.1 13.7 29.5 33.7 21.1 100.0

ON TIME DELIVERY

POOR FAIR GOOD VERY GOOD EXCELLENT

The above graph says depicts about the on time delivery of the vehicle at different service centers and response on the on time delivery says that 33.7% say that its VERY GOOD, 29.5% say GOOD, 21.1% say EXCELLENT, 13.7% say its FAIR, and 2.1% say its POOR.

YOU WERE EXPLAINED THE WORK TO BE PERFORMED BEFORE HAND

Valid

YES NO Total

Frequency 91 4 95

Percent 95.8 4.2 100.0

Valid Percent 95.8 4.2 100.0

Cumulative Percent 95.8 100.0

YOU WERE EXPLAINED THE ORK TO BE PERFORMED BEFORE HAND

YES NO

The above table says that 95.8% have been explained the work to be performed before hand and 4.2% say that they have not been informed about the work.

YOU WERE EXPLAINED THE WORK PERFORMED AND BREAKDOWN OF CHARGES

Valid

YES NO Total

Frequency 83 12 95

Percent 87.4 12.6 100.0

Valid Percent 87.4 12.6 100.0

Cumulative Percent 87.4 100.0

YOU WERE EXPLAINED THE WORK PERFORMED AND BREAKDOWN OF CHARGES

YES NO

The table says that 87.4% say that they have been explained the work performed &about charges. Where as 12.6% say they have not been explained about work performed.

YOU WERE INFORMED WHEN YOUR VEHICLE WAS READY

Cumulative Percent 60.0 100.0

Valid

Yes NO Total

Frequency 57 38 95

Percent 60.0 40.0 100.0

Valid Percent 60.0 40.0 100.0

YOU WERE INFORMED WHEN YOUR VEHICLE WAS READY

YES NO

From the above we can see that 60% say that they have been informed when their Vehicle was ready and 40% say that they have not been informed.

THEY CONTACTED YOU TO ENSURE THE WORK WAS PERFORMED TO YOUR SATISFACTION
Frequency 24 67 4 95 Percent 25.3 70.5 4.2 100.0 Valid Percent 25.3 70.5 4.2 100.0 Cumulative Percent 25.3 95.8 100.0

Valid

YES NO N/A Total

THEY CONTACTED YOU TO ENSURE THE WORK WAS PERFORMED TO YOUR SATISFACTION
YES NO N/A

The above table says that 70.5 % have not been contacted to ensure that the work was performed to their satisfaction. Where as 25.3% say that they have been contacted and remaining, 4.2% say n/a.

THE PAPER WORK WAS COMPLETED AND WAITIING FOR YOU WHEN YOU ARRIVED

Valid

YES NO N/A Total

Frequency 43 43 9 95

Percent 45.3 45.3 9.5 100.0

Valid Percent 45.3 45.3 9.5 100.0

Cumulative Percent 45.3 90.5 100.0

THE PAPER WORK WAS COMPLETED AND WAITIING FOR YOU WHEN YOU ARRIVED
YES NO N/A

The table shows that 45.3% say that paper work was complete before he arrive and 43.3% say no to it, where as 9.5 % say no answer.

CHAPTER VI

FINDINGS
From the survey, we can conclude that most of the customers who visited the Hero Honda service station are male. Most of the customers who visited the Hero Honda service station are between the age group of 20-25years of age. The vehicles which visited the service station are been purchased during the year 2005 The quality of work performed at various hero Honda service stations is good.

Most service centers offer convenient hours of service. The Hero Honda service centers are very good in arranging replacements.

The workers at Hero Honda are very good in performing the repair works. The vehicles at the Hero Honda service stations are delivered on time. The customer has been explained the work to be performed in every service station of Hero Honda.

The worker has explained the costumer about the work that have been performed and about the charges incurred.

The customers have been informed when their vehicle was ready. No customer has been contacted to ensure whether he is satisfied with the service.

SUGGESTIONS

1. Most of the vehicles manufactured by Hero Honda are male oriented and they concentrate on male customers. It will be good if they concentrate on female customers.

2. The waiting area in most of the service stations is fully untidy. Therefore, the waiting area should be kept tidy in order to satisfy the customer better.

3. It will be better to serve the customer with some refreshment and entertainment in the waiting area.

4. The customer is not been contacted after the service to know whether the service was up to his satisfaction.

CONCLUSION
On conducting a survey in various service stations of Hero Honda located in the twin cities of Hyderabad and Secunderabad with a sample of 100 customers out of which an approx of 95 customers has given their opinion about the after sales service of the hero Honda. From the study I came to a certain conclusion that majority of the customers who visit the service centers are male between the age group of 20-25 years of age in which most of them are professionals. Their opinion has been taken and from which we can easily conclude that the quality of work performed is very good and the employees are so friendly and helpful that one can feel very comfort. They are ready to take an appointment and are very good in arranging replacements and performing the repair works and even delivering the vehicle on time for the convenience of the customer. The work to be performed is been explained before service and work performed after service and will contact you when your vehicle is ready. The only thing about hero Honda is that in most cases the customer have not been contacted to ensure customer satisfaction and the paper work will not be completed unless you arrive.

BIBLIOGRAPHY
1. MARKETING MANAGEMENT -- PHILIP KOTLER --- LEON G. SCHIFFMAN & LESLIE KANUK --- G.C.BERI

2. CONSUMER BEHAVIOUR 3. MARKETING RESEARCH 4. BUSINESS INDIA BUSSINESS STANDARDS DECCAN CHRONICLE THE HINDU 3. WEBSITES www.google.com www.herohonda.com www.phonexmotors.com

www.automobileindia.com

ANNEXURE QUESTIONNAIRE
Automobile service evaluation Scale: (1) Poor (2) Fair (3) Good (4) Very Good (5) Excellent (6) N/A

To be completed by the person most responsible for servicing and maintaining vehicle. On your most recent service visit, how would you rate the service department on the following areas?
1. 2. 3. 4. 5. 6. 7. 8. 9. Quality of work performed Making you feel comfortable Friendliness and helpfulness of cashiers Having convenient hours for service Ease of obtaining an appointment Promptness in handling repair work Arranging replacement Performance of repairs Clean, comfortable waiting area 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6

10. On time delivery

Did the following things occur on your most recent service visit?
1. 2. 3. 4. 5. You were explained the work to be performed before hand.

(1) Yes (2) No (3) N/A

1 2 3 1 2 3 1 2 3 1 2 3 1 2 3

You were explained the work performed and the break down of the charges. You were informed when your car was ready. They contacted you to ensure the work was performed to your satisfaction The paperwork was completed and waiting for you when you arrived

DEMOGRAPHIC INFORMATION

(1) Gender (1)Male (2) Female (2)Age (1) Less than 20 years (2) 20 to 25 years (3) 25 to 30 years (4) Above 30 years (3) Qualification (1) Graduate (2) Post Graduate (3) professional (4) Type of a vehicle: (5) Year of purchase:

CONTACT NUMBER: EMAIL ID:

THANK YOU