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PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an

essence taking a view of the whole business organization and its

ultimate objective concern for marketing must penetrate all areas of the

enterprise. Market survey in today’s competitive world is a must for

every organization.

This project is a study of market potential of Hero Honda. The rational

behind this particular study is to find out the present market scenario of

various brands & to find out the corporate need and perception. It was a

pleasurable experience to conduct a research on behalf of Hero Honda

pertaining to the study of the Automobile Sector.

To carry out this research a sample study was pursued where the target

was made to the people of Delhi region. Various statistical and analytical

tools and techniques are applied to ascertain and depict the present

scenario.

Conclusion and there by recommendation has been arrived at by proper

and justified interpretation of the result derived from the above said

analytical tools and techniques.

ACKNOWLEDGEMENT

I would also like to express the same gratitude towards Mr.

Narinder Tawar (Faculty of management) who gives good

support to me the very basics of project, and suggestion.

My thanks to all the financial advisors of Hero Honda

especially Mr. Ashish Kapoor (Regional Mkt. Manager)

who helped me get over my hard times during my sales job, I

can never forget his support and encouragement.

I also thank to BSAITM, Faridabad who give me opportunity

to work with Hero Honda. It increases my knowledge about

markets in which future will be struggle.

Last but not the least I would like to thank GOD & MY FATHER &

MOTHER, for helping me in every aspect and in every part of

my summer training.

Dinesh Singh Rawat

IN PURSUIT OF EXCELLENCE

“We, at Hero Honda, are continuously striving for synergy between

technology, systems, and human resources to provide products and

services that meet the quality, performance, and price aspirations of our

customers. While doing so, we maintain the highest standards of ethics

and societal responsibilities, constantly innovate products and process, and

develop teams that keep the momentum going to take the company to

excellence in the new millennium”.

1.1 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

The Automobile sector is one of the fastest growing manufacturing

sectors in India.

 In the 90s the industry witnessed an average growth rate of above

20 percent.

Indian Automobile Industry is characterized by a very high

percentage (75 per cent) of two wheeler production, ranking second

only to Taiwan.

 The world leaders in the sector are evincing keen interest in

establishing manufacturing facilities for manufacturing and

assembling components.

 A politically stable and vibrant State, Andhra Pradesh is centrally

located with the support of seaports, international airports, assured

and reliable power supply, abundant water, broad base of auto

component manufacturers, highly trained, skilled and disciplined

manpower and is therefore, the preferred location for Automobile

industries.

 The interest of the state has been duly noted by Global Auto

Majors, who have indicated their interest to consider Andhra

pradesh for establishing manufacturing facility.

 The Government of Andhra Pradesh invites leaders in the industry

to set up manufacturing facilities to manufacture vehicles or vehicle

components in the State. The ideal places to locate companies in the

Auto Sector are the Hyderabad-Zaheerabad, Visakhapatnam-

Kakinada, Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur

corridors.

 The Government is also formulating an Auto Policy, which would

give a proper direction to the growth of the sector.

 There are more than 20 auto –component manufacturing companies

in the State, manufacturing components such as grey-iron castings,

precision aluminium castings, leaf springs,oils and lubricants, diesel

fuel injection equipment, electronics and auto electronics and auto

electrical, front axles, gears, forging, machined components, pressed

metal components, pistons, cylinder liners, nozzles, delivery valves,

starter motors, alternators, electronic regulators, high pressure die

castings, clutch covers, fuel filters ,etc.

 Most of these components are presently being supplied to Hero

Honda, TVS Suzuki, Escorts Yahama, Bajaj and others. Amaron

Batteries are manufactured in Chittoor district. Around 119

components manufacturers have been certified for ISO 9000 quality

standards and seven companies achieved the QS 9000 quality

standard set by government and motors association.

1.2 ABOUT THE COMPANY

Hero Honda has a reputation of being the most fuel-efficient and the largest

selling Indian motorcycle. Its commitment of providing the customer with

excellence is self-evident. A rich background of producing high value products

at a reasonable price led the world's largest manufacturer of motorcycles to

collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and

the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A

relationship so harmonious that Hero Honda has managed to achieve

indigenisation of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish itself

as an intelligent purchase. Its unique features like fuel conservation, safety

riding courses and mobile workshops helped the group reach in the interiors of

the country.

Finance services helped facilitate purchase, as did an efficient dealer network

across the country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its

attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the

National Productivity Council's Award ( 1990-91), and the Economic Times -

Harvard Business School Association of India Award, against 200 contenders.

Its main Models are

Hero Honda

o cbz

o splendor

o cd100

o cd100ss

o street smart

o passion

o Karizma

o CD dawn

o Ambition 135

1.4 VISION OF THE COMPANY

The Legend of Hero Honda

What started out as a Joint Venture between Hero Group, the world’s largest

bicycle manufacturers and the Honda Motor Company of Japan, has today

become the World’s single largest two wheeler Company. Coming into

existence on January 19, 1984, Hero Motors Limited gave India nothing less

than a revolution on two-wheels, made even more famous by the ‘Fill it – Shut

it – Forget it ‘ campaign. Driven by the trust of over 5 million customers, the

Hero Honda product range today commands a market share of 48% making it a

veritable giant in the industry. Add to that technological excellence, an

expensive dealer network, and reliable after sales service, and you have one of

the most customer-friendly companies.

This is proved by the company’s sales over the years:

1985-86 43,000 units

1989-90 96,200 units

1998-99 5,30,600 units

1999-00 7,61,210 units

2000-01 10,29,555 units

2001-02 14,25,195 units

2002-03 17,78.392 units

Customer satisfaction, a high quality product, the strength of Honda technology

and the Hero group’s dynamism have developed HTML scale new frontiers and

exceed limits.

In the words of Mr. Brijmohan Lal 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 efficient

management”.

1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984

Company incorporated.

Technical collaboration signed.

Foundation stone lay.

1983 - shareholders agreements signed.

1985

First motorcycle (Model CD 100) produced.

1987

Engine plant started.

1,00,000th Motorcycle produced.

1989

Sleek model introduced.

1991

5,00,000th motorcycle produced.

CD-SS model introduced.

Economic times – Harward business school award for excellent

Governance to Hero Honda Motors Ltd.

1993

Hero group sponsors Hero cup five nations cricket tournament

1994

Splendor model introduced.

1995

National Award for outstanding contribution to the development of

Indian small scale industry (NSIC Award presented by President of

India)

The analyst award 1995 presented to Hero Honda Motors Ltd. on

being ranked 9th amongst the most investor rewarding companies in

India.

1996

1000 motorcycle per day production started.

1997

15,00,000th motorcycle produced.

Street model introduced.

Hero sponsored 6th women world cup cricket tournament.

1998

20,00,000th motorcycle produced.

1st Hero Honda Master golf championship held at Delhi.

1999

30,00,000th motorcycle produced.

CBZ model introduced.

7th World Cup Cricket tournament sponsored at England.

Most admired business Baron CEO award conferred upon the

Chairman Brij Mohan Lal Munjal.

2001

Passion and Joy motorcycle launched.

One million motorcycles produced in one single year.

50,00,000th bike produced.

Winner of the review-2000-Asia’s leading companies’ award

2000.

National productivity award for the best performance in

automobile and tractors.

Sir Jahangir Ghandy medal for industrial peace awarded to Brij

Mohal Lal by XLRI Jamshedpur.

2002

Declared “company of the year” by economic times business

award.

Chairman Brij Mohan Lal awarded the “entrepreneur of the year”

award by Business standard.

Ambition launched.

2003

Declared “company of the year” by economic times business

award for the second time.

Karizma the sports segment bike launched.

This all says about the golden past of the company and the company is

going on to the path of success.

1.6 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market share

HERO HONDA Motorbikes 75% market share

BAJAJ AUTO Scooter+Motorbikes+ Scooterate 25% market share

LML Scooter+Motorbike+Scootrate 30% market share

TVS Motorbikes+Scootrate 15% market share

YAMAHA Motorbikes 15% market share

ENFIELD Motorbikes 10% market share

According to the recent results company (Hero Honda) registered a sales

increased by 24.5% over the past years. Same month TVS also registered

increase of 45% while the other companies are not enjoying quiet good

increase in sales. While the whole industry registered an increase of about

17% only. So in present scenario the Hero Honda comes as the leader of

whole automobile segment while there is immense competition in industry

to get the highest market share.

BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly,

Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as

its brand ambassadors joining the add campaign together to promote

“Ambition”. All of these celebrities are the member of Indian cricket

team and very much popular in younger generation. In the last year with

the launch of its new premium bike Karizama Hero Honda signed its new

brand ambassador who is a cine star and is also very popular. He is Hritik

Roshan.

Service Your Bike

Hero Honda has always taken a lead in terms of defining service standards

in two wheeler industry with an aim to provide "Total Customer

Satisfaction" for their valuable customers across the country and also

internationally. We are constantly endeavoring to improve the quality of

our service facilities at our Dealerships. The first and foremost step to

achieve this was creating Automated Workshops at our Authorized

Dealerships and Service Centers across the country.

Automated Workshops

Hero Honda has the largest chain of Automated Workshops providing

service to their valuable customers by using latest service technology.

Automated Workshops have standard layout, hydro electric motor cycle

lifts, dust free engine rooms and use pneumatic tools and equipment to

ensure quality repair in customers motorcycle. The workshop environment

and usage of pneumatic tools increases mechanics efficiency and their

motivation to provide quality service. The layouts have been standardized

to ensure that there is a transparency of service. The customers can view

their motorcycle repair while sitting comfortably watching TV or relaxing

in the customer lounge. Workshop Automation has become a mandatory

service standard for all Hero Honda Dealers and Service Centers.

Training

The regular Technical Training Programmes for Dealers Workshop staff

to keep them updated and refreshed about the latest price technology,

product technical details as well as service and repair procedures to handle

customers motorcycle with utmost care as well as to provide them the

service quality of highest order is a focus area at Hero Honda. Hero Honda

has six (06) training centers across the country. There are 05 zonal training

centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take care of

technical training requirements of dealers in each zone as well as local

technicians. There is a National Training Center at Dharuhera to take care

of all advanced level technical programmes for our dealers staff and our in

house service engineers. Hero Honda keeps an organizing Dealers

Mechanics Contest at Zonal Level and National Level to develop

competitive spirit among mechanics as well as in the process to update

their skills and product knowledge.

Customer Service

Hero Honda keeps on taking always-new initiatives to maintain its

leadership on service as well as enhance customer satisfaction level on an

ongoing basis. Some of the new initiatives related to customer service are

as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers

· Pre Paid Reply Cards

· Automated Mobile Service Workshops

· Mega Millennium Camps

· On the Job Training Programmes

· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our

dealers to keep our customers always in our mind on top priority.

Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero Honda is also launching very soon a novel concept and a very major

initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of Hero

Honda's motorcycle delivery process at the showroom. Customers shall be

educated on Safe Riding techniques through various audio visual aids.

Safety Instructors shall be imparting riding skills as well as education to

the customers. Dealers shall also conduct a major programme in their

respective towns with the association of local traffic police on a regular

basis on safety education and correct riding techniques.

2.1 OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in mind.

To study the brands of Hero Honda & consumers perception

Aabout the product of hero honda.

To know why people buy Hero Honda and why some people

prefer other company.

To study the features of different brands that give a good idea of

various products and services offered by the company.

To understand the competitive environment in which the

company is operating and is desired to meet customer need and

satisfaction.

To provide useful information to the company about the product

features of various competing companies.

2.2 METHODOLOGY

The methodology used in conducting the research work on HERO HONDA

with major emphasis on its sales and marketing strategies involve the following

steps:

Why I have selected HERO HONDA only?

I have selected Hero Honda for my summer training because it is the company

that is growing day by day. It has maximum market share with comparison to

its competitors. And it is the company that gives highest sales and it is also the

highest two-wheeler manufacturer.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process. Proper

defining of the problem is a must for proceeding further with the research

process. The type of study to be carried out, the questions to be raised, the

sampling procedure to be followed, and the data to be collected, all depends on

a correct understanding of the problem. Also, by clearly focusing on the real

problem, the research job can be simplified and completed with the minimum

cost, effort and data.

Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:

In this a plan was developed about how to collect the require information

i.e. whom to contact for gathering the relevant data. Data is the foundation

of all research. It is the raw material with which a researcher functions.

Therefore, it requires great care to select the sources of data. Data, or

facts, may be obtained from several sources. Data sources can either be

primary or secondary.

A. Secondary data:

The sources from which secondary data was collected:

Press releases of the company.

Newsletters and In-house journals.

Brochures and detailed descriptive leaflets

Magazines like Business World, Outlook, Auto India, etc.

Websites such as www.herohonda.com, www.google.com. These

were the sources from which secondary data has been gathered.

Most of the information presented in this report was extracted from

the above data sources.

B. Primary data:

Collection of primary data was conducted by visiting the people

personally for the preparation of the report.

2. Research approach:

It means the way by which the information was collected. Visiting the

various places of Delhi, getting the questionnaire filled by different

individuals.

Beside this, frequent visit to the showrooms of the company was of

great help to conduct the analysis and research work.

3. Contact methods:

Instrument or Data collected Forms: It is the method by which data is

gathered. It could be done through various instruments like

questionnaires, observations, getting information from the staff

members of the agency, contacting to the motor mechanics was

sufficient enough to conduct the study.

4. Collection of information :

The primary information was collected by face-to-face and direct

interviews with the peoples and the customers. They provide the

relevant information regarding the profile of the company as compared

to the other company in the Indian market. Most employees suggested

visiting company’s web site, as it was not possible for them to spare

time from their busy schedules.

The secondary sources of information were various web sites of the

companies, newspapers & magazines such as The times of India, The

Hindustan Times, Business world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of

the information has been done on the basis of various sales and

marketing strategies adopted by the company during its tenure.

6. Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and

analysis of data, it was recorded in the form as prescribed. The major

part of the report is the findings. The finding also includes charts, tables

and diagrams etc. The report also mentioned the limitations of the

project undertaken. Then conclusion has been drawn out of the findings

and various recommendations have been given at the end of the report.

Certain tables on the basis of which the findings were made have been

included in the appendices section followed by the bibliography.

2.3 SCOPE OF THE STUDY

Hero Honda is spreading its wings and widening its business horizon

to reach and serve customers at new centers in the year ahead. The

company services are backed by a highly motivated and technology

driven team to achieve customers need, product expertise and

geographic reach.

The study is oriented towards the concept of different brands offered

by Hero Honda and its competitors to its customers. The company has

endeavored to move fast in providing market solution, which

maximize customer needs and convenience, using multiple delivery

channels in composing the agency network, service centers, lower

service cost and increased efficiency.

2.4 LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company

to assess how far the customers are satisfied with product and services of Hero

Honda. During the course of the study the following limitations were observed:

The method will be unsuitable if the number of persons to be surveyed is

very less as it will be difficult to draw logical conclusions regarding the

satisfaction level of customers.

Interpretation of data may vary from individual depending on the

individual understanding the product features and services of the

company.

The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

It is very difficult to check the accuracy of the information provided.

Since all the products and services are not widely used by all the

customers it is difficult to draw realistic conclusions based on the survey.

CBZ

The Hero Honda CBZ (pronounced

CeeBeeZee) is the latest offering from

Hero Honda for the Indian market. With a 156cc engine, the company

claims that the bike has a top speed of 100kph within 5.6 seconds.

Though the bike has the largest displacement engine, its top speed

doesn’t match up to many of its competitors. In all other respects, it is a

bit too early to decide whether the CBZ will sell in the same numbers as

the Splendor. Though the initial market response has been good, only

time will be the final arbiter.

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 156cc

Tachometer : Yes

Max Power : 12.8b hp@8000 rpm

Wheel base: 1,330mm

Ground Clearance: 160mm

Ignition : Electronic CDI

Dry Weight: 140kg

Fuel tank Capacity: 12.5itres

Battery: 12V

Max Torque: 1.26kgm@6500rpm

Bore x stroke: 63.5mmx49.5mm

Max Speed: 120kph

Front Tyre size : 3.25x19"

Rear Tyre size: 3.50x19"

Splendor

A combination of style and economy makes the Splendor

is a bike worth investing in. The latest from the Hero

Honda factory offers both performance and looks. It has

good looks, excellent handling characteristics and a smooth drive over any type

of terrain, thanks to the changes in the suspension at front and near as well as

the new frame design. All these features contribute to the Splendor being one of

the best selling four stroke-two-wheelers in India. It also meets all the current

pollution standards. A healthier beat, springy ride and overall low maintenance

has aided in the record-breaking sales of this bike.

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 97.2cc

Tachometer : No

Max Power : 7.2b hp@8500 rpm

Wheel base : 1,230mm

Ground Clearance : 159mm

Ignition : Electronic

Dry Weight : 100.3kg

Fuel tank Capacity : 10.5itres

Battery : 12V

F/R suspension : Tel Hydraulic fork

R/R suspension : Swing arm and Hydraulic damper

Max Speed : 90kph

Front Tyre size : 2.75x18"

Rear Tyre size : 2.75x18"

St

re

et

10

0

The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The

Hero Honda Street 100 is equipped with unique features like city-clutch, which is designed

specially for city driving. It has rotary gears, which allow the rider to flip directly from the

fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-and-go’

traffic. A self-starter button comes as an option. The Street can be purchased with a variety of

seat layouts and has options like a water pump, spray can, larger luggage tray, etc. Its major

competitor is the much cheaper K4 from Kinetic. Major plus points that justify the higher

price are the centrifugal clutch and the rotary gears. However, the liberal use of plastics

negates much of the ‘feel good’ factor and has hindered sales to a large extent.

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 97.2cc

Tachometer : N/A

Max Power : N/A

Wheel base : 1,205mm

Ground Clearance : 133mm

Ignition : Electronic

Dry Weight : 101kg

Fuel tank Capacity : 11litres

Battery : 12V

F/R suspension : Telescopic

R/R suspension : Swing arm and Hydraulic dampers

Max Speed : N/A

Front Tyre size : 2.25x17"

Rear Tyre size : 2.50x17"

CD100S

S

The CD100SS is designed for those who live life in the fast lane, rough

and tough, for those who would love to take a bike on the stumbling

village roads. It shares almost all components with the CD100, except for

the additional reinforcement. With larger, reinforced shock absorbers,

wider tyres, heavier body weight and engine guard, the Hero Honda CD

100 SS weights slightly more, resulting in some cut down in the fuel

economy it offers. Minor problems of the CD100 have been rectified in the

SS model. If you wish to ride into the hinterland, this is the bike for you.

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 97.2cc

Tachometer : No

Max Power : 7.0bhp@8000rpm

Wheel base : 1,220mm

Ground Clearance : 165mm

Ignition : Electronic

Dry Weight : 103kg

Fuel tank Capacity : 10.1litres

Battery : 12V

F/R suspension : Tel Hydraulic fork

R/R suspension : Swing arm and Hydraulic damper

Max Speed : 85kph

Front Tyre size : 2.57x18"

Rear Tyre size : 3.00x18"

Features :

Engine 4-stroke, single cyclinder, air-cooled

Displacement 97.2cc

Clutch type Manual

Clutch Primary -

Clutch Secondary Multi-plate wet

Transmission 4-speed constant mesh

Final Drive Roller chain

Ignition Electronic

Starting Kick starter

Frame T-Bone type

Suspension (Front) Telescopic hydraulic fork

Suspension (Rear) Swing-arm with hydraulic dampers

Dimensions (LxWxH) 1885x770x1060mm

Wheel Base 1210mm

Ground Clearance 135 mm

Dry Weight 95 kg

Tyres:Front/Rear 2.50"x18"/2.75"x18"

Max.Power 7.0 PS @ 8000 rpm

Max.Speed 85 Kmph

Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)

A

m

bit

io

n

13

5

Features :

Engine 4 stroke

Displacement 133 cc

Maximum Power 11 BHP / 11.15 PS @ 8000 rpm

Maximum Speed 100 KMPH

Gears 5

Frame Tubular single cradle, diamond type

Tyres: (Front) 2.75 X 18

Tyres: (Rear) 3.00 X 18

Headlight Trapezoidal 35 / 35 W

Fuel Efficiency 55 KMPL

CD DAWN

Features :

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

Displacement 97.2cc

Clutch Multiplate wet

Gear box 4 speed constant mesh

Frame Tubular double cradle

Battery 12V - 2.5 Ah

Head lamp 35W / 35W - Halogen bulb

Suspension(front) Telescopic hydraulic shock absorber

Suspension(rear) Swing arm with hydraulic shock absorber

Wheelbase 1230 mm

Dimensions (LxWxH) 1980x720x1045 mm

Ground clearance 150 mm

Kerb weight 108 kgs

Tyre (front) 2.75 x 18-4 PR

Tyre (rear) 2.75 x 18-6 PR

Max power 7.4 PS @ 8000 rpm

Max torque 0.79 Kg-m @ 5000 rpm

Bore x Stroke 50.0 x 49.5 mm

Compression ratio 8.8: 1

Starting Kick start

KARIZAMA

If you look at the 223c mill of the Karizma, you can

make out the familiar streak that runs through the

engines on the CBZ and the Ambition. No prizes on this count as to the reason

but the 223cc Karizma engine represents - for the moment - the maximum

capacity this modular design theme can be taken to. The crankcase is of

virtually the same size though the covers do have some detail differences and

the engine mounts are the same as in the other two bikes and completing the

picture are the scaled-up barrel (with an additional fin) and head.

The single overhead cam motor features slightly undersquare cylinder

dimensions with a 65.5mm bore and a 66.2mm stroke to give a 223cc swept

volume. Hero Honda has designed in the latest convex-type combustion

chamber (compression ratio being 9.0 : 1) for silent running and good power

delivery while also giving it the latest Keihin VE 3EA constant vacuum type

carburettor which also packs in the CCVI switch. The CCVI term stands for

carb-controlled variable ignition timing which as it suggests actuates - via

throttle position - one of two ignition maps, for low and high speed operation.

This was one area which disappointed appreciably in the CBZ wherein the

engine sounded and felt harsh as one went past the middle range but here this

detail has eliminated such a glitch completely. Just for the record, the 223cc

engine gets the latest version of Honda's AMI (advanced microprocessor

ignition) system which incorporates a three tier, multi-stage digital ignition

system.

The all aluminium alloy engine (with pressed-in steel liner) features an

automatic cam chain tensioner, an air cut off valve (to prevent afterburning in

the exhaust muffler) and like on the CBZ and Ambition, an air injection valve

to keep tail pipe emissions in check. With all this and the extra cubic capacity,

the Karizma engine develops 16.76bhp at 7000rpm and 18.35Nm of torque at

6000rpm. This is about 2bhp and 5Nm more than what the Pulsar 180 makes

but the reasoning is that the engine had to be stressfree and this fact holds true

when out on the roads.

Transmission is via a five-speed gearbox which has had its final drive ratios

revised from those in the CBZ. A stronger multi-plate clutch is used to take

care of the enhanced power and torque figures. This time round Hero Honda

has not faulted and equipped the engine withan electric starter even though the

kick starter to be actuated requires the front right footrest to be folded out of

the way.

ENGINE:

TRANSMISSION:

PASSION PLUS

Features :

Displacement 97.2 cc

Maximum Power 7.5 Ps at 8000 rpm

Gear Box 4 Speed Constant Mesh

Clutch Multi-Plate Wet Type

Max. Speed 85 Kmph.

Frame Tubular Double Cradle

Suspension (Front) Telescopic Hydraulic Fork

Suspension (Rear ) Swing Arm with 5 step adjustable hydraulic damper.

Tyre Size (Front ) 2.75 * 18- 4 PR /42 P

Tyre Size (Rear ) 3.00*18-4/6 PR

Brakes (Front) Internal Expanding Shoes Type

(130mm)/ Hydraulic Disc Type (Optional)

Brakes (Rear) Internal Expanding Shoes Type (130 mm)

Final Drive Roller Chain

Battery 12 V-2.5 Ah

Ignition Electronic CDI

Starting Kick Starter

Wheelbase 1235 mm

Ground Clearance 160mm

Length 1980 mm

Width 720 mm

Height 1060 mm

Kerb Weight 116 kgs.

Fuel Tank Capacity 12.8 litres (Reserve 1.1 litres)

Head light Halogen Bulb 35 W / 35 W

4.1 FACTS & FIGURES

Sale of Hero Honda in Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale

of Hero Honda is less but in urban area it gives very exiting result. This may be

because of the conditions of roads there.

Area % of Respondents

Urban Area 72

Rural Area 28

PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken from the

mentioned areas for the survey. It was observed that the people of main town

like to use Hero Honda as they like all features of it. And is according to there

pocket

Areas % of respondents

Preet Vihar 42

Laxminagar 12

Cannaught Place 26

Shakarpur 14

Other 6

FAMILY INCOME OF RESPONDENTS

The income distribution of the families of respondents shows that the bike,

which was considered earlier to be out of range for middle class families is now

becoming very fast an article for them.

Family income (Rs.) % of Responses

5000-10000 10

10000-15000 46

15000-20000 36

Above 20000 08

PERSONS WHO KNOW TODRIVE BIKE

Almost every person know how to drive a Bike (In my Survey)

Response % Of respondents

Driving known 96

Driving not know 04

FACTOR PROMPT TO BUY HERO HONDA

It should be stated that the performance is the most important factor followed by look. The

possible combination and corresponding number of respondents are shown in the table

below.

Features % of respondents

Performance 18

Look 11

Availability 5

Price 1

Maintenance 4

Brand image 5

After sale service 6

HOW DID THE RESPONDENT CAME TO KNOW ABOUT

THE BIKE?

The best media of advertisement (according to which the respondents came to know about

the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of

them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46

Magazine 36

Friends 14

Hoardings 02

Others 02

PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of

the respondents say that they have purchased their bike through bank loans.

Purchase Type % of Respondents

Cash Purchase 94

Hire Purchase 06

DECISION INFLUENCED BY

Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their

friends and parents influenced them.

Influencer % of Respondents

Parents 16

Self 54

Friends 18

Relatives 08

Others 04

BIKES PREVIOUSLY USED

More than 60% were using Hero Honda CD100 bikes. They were followed by Yamaha

RX100 & very little have chosen other bikes.

Previously Used % of Respondents

CD100 62

Yamaha RX100 32

Others 06

RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing a stiff

competition from Pulsar & Fierro.

Bikes % rating by Respondents

Splendor 38

Passion 08

Ambition 06

Pulsar 28

Fierro 14

Others 06

4.2 SURVEY REPORT

The Initial Quality Study of Two Wheelers in India

Something to Ponder over.

Which model of Motor Cycle would you recommend to your dear

friend?

Does the basic reliability of two-wheelers measure up to the promises

made by the manufacturer…?

Where exactly is the quality lacking…?

Are buyers happy with the quality they get…?

What is the trend over the years…?

Would they buy the same model again or more importantly from the

manufacturers point of view… would they advise their friends to buy

it…?

So let the people know just how the two-wheelers fared on the road…

WORKS :

It quantifies the initial quality of two wheelers in the form of the

universally accepted metric – Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performance

Links the quality findings with the customer viewpoint

Prelude :

Each year manufacturers of two wheelers sells millions of vehicles in

India with an implicit promise…… that their products will have zero

defects.

However, do their Products match up to their promises?

And how can we find out how they perform on the road?

PPM is an initial quality index for two wheelers. It is an index that

represents the level of quality in manufacturing and delivery

operations for a given model of two-wheeler.

PPM counts the number of problems faced by the user of a given

model of two-wheeler within the first three months of its usage. The

addition of such problems for 100 carefully chosen vehicles indicates

a number called ‘problems per 100 vehicles’ or PP100V. e.g. if a

particular model has initial quality index of ‘216 problems per 100

vehicles’ it means on an average each vehicle will have 2.16

problems.

The exercise started on 5th July, 2004. The fieldwork was completed

on 5th August, 2004.

Field investigators have spent more than 10,000 hours on the road,

carefully tracking down new owners of 14 popular bikes, to find out

what problems they have encountered in the first three months of

usage.

Responses were collected from about 100 people living in town for

each of the 24 models totaling to more than 2400 responses from

areas.

Aided recall technique was used through a structured questionnaire

based interview to collect the data from the field. Only full-time field

investigators of METRIC were employed for data collection to

maintain reliability of responses.

Findings :

The Indian two wheeler industry today offers more than 70 models to

a buyer. And manufacturers are launching new models every day……

More than 20 models were launched in the last year.

Top this up with a variety of promises ranging from free gifts and

financial schemes to the attractive looking models and jingles in the

advertisement.

In this whirlwind of speed and confusion maze, choosing the right

pair of wheels can be a trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a

given category of two wheeler. A lady doctor may decide to look only

at gearless scooters while a collegian with a rich father may only look

at premium bikes.

What next……? Which bike should I buy? A bike with more

power…… better looks…… more reliability…… errrr!

Lesser problems per vehicle for a given model could be a good

enough reason to go for the model…..? Yes! But, within my selected

category of premium bikes… So which premium bike has lesser

problems?

Do new launches have more problems than older ones? Naa…! Does

PPM score depend on who manufactured the vehicle…? See for

yourself!

Manufacturer-wise PP100V scores in Survey

Sr.No.    Vehicle    PP100V

1 Honda 146

2 LML     165

3 Hero Honda 176

4 Kinetic 183

5 TVS 196

6 Bajaj 196

7 Yamaha 223

Executive bikes scored less problems than economy bikes…however

simpler machines like scooters have the fewest problems

This year we classified motorcycles by the market as premium,

executive and economy…...

Amongst the bikes, we found the number of problems were lowest in

executive bikes and highest in economy bikes….

Executive bikes (179 PP100V), then premium bikes (209 PP100V)

and last were economy bike (230 PP100V).

Maximum Problems found in engine and transmissions:

46% of the problems reported by customers were problems like high

fuel consumption, starting trouble, erratic / rough gear shifting,

noisy / loose drive chain etc. All these problems are related to the

engine & transmission. Another 12% of the problems were attributed

to miscellaneous aspects like battery discharged, stand hard to

operate, etc.

Perhaps this is the most complex part of the two wheelers and hence

poses maximum challenge to the quality control guys in the

manufacturing units.

ENGINE Trouble..

Splendour the largest selling executive bike from Hero Honda has reported the

lowest number of problems with ENGINE (37 PP100V) closely followed by the

newly launched geared scooter Eterno (38 PP100V) from Honda.

Simplicity is the beauty

TRANSMISSION WOES :

Gearless scooters/scooterettes have lowest number of TRANSMISSION

problems., complains Who fulfilled the promised performance and how

much…?

Sl No. Manufacturer     % models above category average

1 Honda                   100

2 LML                   100

3 Hero Honda              67

4 Bajaj Auto              43

5 TVS                        33

6 Yamaha              33

7 Kinetic    25

SCOPE AND COVERAGE :

Manufacturers and their Models:

Sr.No.    Manufacturer  List of models studied

* Bajaj

1     Boxer

2        Caliber 115

3     Pulsar 150 / 180

4    Spirit

*Hero Honda

f

5   Ambition

6    CD-100 / SS / Dawn / CD Dawn

7   Splendor / Passion

  *Kinetic Engineering

8 Boss

   

*LML

9    Freedom

*TVS

10    Max 100 R / DLX / DC

11       Victor

  

*Yamaha

12    Crux / Crux R

13    Enticer

14    Libero

Aggregates and features covered:

§    Overall Satisfaction

§    Overall quality

§    Instrument Panel / Dash Board

§    Locks

§    Control knobs / Switches

§    Handle

§    Lights

§    Body

§    Transmission

§    Engine

§    Wheels

§    Riding

5.1 RECOMMENDATION

It is clear from the report that the Hero Honda Motors is facing cutthroat

competition; hence the company’s manager has to be fast and smart so as to

understand the customers needs. They have to come up with various new

techniques or schemes to be able to cater to different categories of people.

Customers are becoming more wise day by day and they are now willing to

know all the in and out of the things happening around them. This has led to

increased customer awareness.

We can analyze that if the brand is reputed that doesn’t win the customers

delight unless it’s provided same value-added features or else we can say

competitive advantage.

For gaining a competitive advantage it has to continuously compare the

product and services with the competitors and find the weak area of the

rivals for gaining competitive advantage.

Surveys revealed that awareness of Hero Honda Motors is low among its

target segment for creativity awareness. The company has to take some

keen step for promotional activity.

The company should regularly send the sales person who have good

communication skill to the customers so that they should be aware about

the product and services in market and know the quality of the services

offered by the company.

While Hero Honda has strong foothold in the industry, the company

should look into the areas of weakness.

In this connection, It is suggested that the company can look into the

following areas:

In order to expand its business it should introduce innovative

schemes for young generations, better financial schemes, etc.

The company should expand its service centers.

The must move towards the rural areas to expand its sale.

QUESTIONNAIRE FOR THE SURVEY OF MOTORBIKES.

1. Name __________________________________________________

2. Address _____________________________________________ _____________________________________________

3. Phone No. ___________________ Mobile No. ___________________

4. Age 18 – 22 years [ ] 23 – 27 years [ ] 28 – 32 years [ ] above 32 years[ ]

5. Do you have any bike in your house?

Yes [ ] No [ ]

6. If yes, Name and Company of the bike.________________________________________________________.

7. If No, Do you have any plan to buy it in next 6 months?

Yes [ ] No [ ]

8. If Yes, Name and Company of the Bike.________________________________________________________.

9. Which Bike does you like most?________________________________________________________.

10.Rank the Motorbike manufacturing company.

1. Hero Honda [ ]2. Yamaha [ ]3. Bajaj [ ]4. L.M.L. [ ]

11. Do you remember any advertisement of Hero Honda?________________________________________________________.

12. What should the price range in your opinion?

Splendor + ___________________ Sufficient [ ]

CD dawn ___________________ Sufficient [ ]Passion + ___________________ Sufficient [ ]

CBZ ___________________ Sufficient [ ]

Karizma ___________________ Sufficient [ ]

13. Any new facilities or any improvement that you want.________________________________________________________________________________________________________________________________________________________________________.

14.Give remark to your old Bike Company.

Good [ ] Very Good [ ]Excellent [ ] Out standing [ ]

Don’t have a Bike [ ]

15 Give remark to Hero Honda.

Good [ ] Very Good [ ]Excellent [ ] Out standing [ ]

Don’t have a Bike [ ]

Thanks

Surveyed by: ………………………Checked by: ………………………

BIBLIOGRAPHY

BOOKS:

Name of the book :- Marketing researchAuthor :- Dr. C.B.Mamoria

Name of the book :- Marketing researchAuthor :- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

Journals published by Hero Honda, Annual Report Auto India, Business World

INTERNET:

www.herohonda.com www.google.com