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Transcript of Hero Honda Report MBA Porject Report Prince Dudhatra
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Declaration
I, the undersigned Miss Namrataba P. Gohil hereby declare that the
project work presented in this report is my own contribution and had been
carried out under the supervision & guidance of Professor Ruchir Pandya
of M. J. Kundaliya College, Rajkot.
This work has not been previously submitted to any other
University for any examination.
Date:
Place: Rajkot
Namrataba P. Gohil
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Preface
As we know business management as a science has developed very
fast during last four decades. Previously it was a discipline subject but
now it has grown into a science of managerial decision-making. It is
phrase to build a reputation and easy to loose it companies that focus
incurred become behind to systematic changes in markets. Competition,
distribution and media technology are observing outside. There is a
fundamental truth in which that people are an important asset of
organization line cash in put into recurring accounts human resources can
appreciate in value. The management process made up with the help of
four steps.
Dimension
Preparation
Activities
Performance
Beside the study of management on personal, financial and
marketing, there is need for detail study for particular management putting
forward topic marketing management with specialization. Marketing mix
is a much complex and wide subject. Lots of work can be done for a small
topic.
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Acknowledgement
I feel pleasure to submit this report, which includes the
practical aspect of study. I am very happy to express my deepest gratitude
to all the persons who spared their valuable time and helped me a lot in
preparation of this report.
I am also thankful to Executives of Perfect Auto Service,
Rajkot for granting me permission for my practical training. I am very
much thankful to Mr. Bankim Bhai Vyas, for his valuable guidance, co-
operation and sparing his valuable time also.
Namrataba P. Gohil
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Contents
SR PARTICULARS PAGE NO.
1 General Information
2 Marketing Mix
Product Mix
Price Mix
Promotion Mix
Place Mix
3 Research Methodology
4 Limitation Of Study
5 Conclusion
6 Suggestions
7 Key of Awards
8 Bibliography
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INDEX
SR PARTICULARS PAGE
NO.
1 INTRODUCTION
History, Growth and Development
of Automobile Industry
History, Growth and Development
of Hero Honda Limited
History, Growth and Development
of Perfect Auto Service
2 Project at a Glance
3 Board of Directors
4 Changing Role Of Marketing
5 Present Marketing Scenario
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INTRODUCTION
History, Growth and Development of Automobile Industry
The process of the Automobile Industry is an index of engineering
skill, though the history of the industry can trained back to the discovery
of the wheel, the real revolution in mechanical development is only 100
years.
The real development of Automobile industry in the World stared in
the late 18th century. But the development of Automobile Industries in
India has round phases. First step was taking in importing cars. The first
car was being imported in 1989. The second step was in late 20 s of the
present century when plant in 1928 to reassemble trucks and cars. In 1930-
31 Ford Motor Company India Limited established its assembly unit in
Mumbai, Calcutta and chennai. These companies imported components
and assemble there in India. At this stage the pioneer engineer Mr.
Vivverwraya pleaded for support to the indigenous of the cars, the British
Government, denied.
The third phase started with successful culmination of Veichand
Hirachands efforts after world war in collaboration with Chryster in
setting up Premier Automobiles in Mumbai. Earlier in 1942, Riria hadestablished Hindustan Motors in British Corporations.
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GROWTH
In 1980 the total production of cars with at least one or two locally
made components were at little over 2100. Today almost all auto parts and
components required by the main manufacturers about 60% are made by
local authority, 75% of which are in the small-scale sector with steady
availability of raw material like iron, steel, copper, aluminum, zinc, etc.
The process of indegnisation has been started with 1954 and 1968,
this was for and final when India exported cars and jeeps to 12 countries.
DEVELOPMENTS
A number of new project most of them with foreign collaboration
are being developed in the automobile industry.
Maruti Udhyog Limited, a public sector undertaking has started
production of small cars and pick up vans. The company entered into
collaboration with Suzuki Motors Limited, Japan in 1985.
Similarly the two producers of cars PAC and Hindustan Motors
have collaboration with Holy and Vascrehail respectively.
Beside many firms have entered into foreign collaboration forproduction of scooters and motorcycles. LML a local company with the
Vespa Company and Hero Cycle Limited made collaboration with Honda
Company of Japan.
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History, Growth and Development of Hero
Honda Limited
When any person in India moves from one place to another place,
he must be thinking of Bikes who make easy to move and the Bike he
think non other than Hero Honda. Today every person with desire of Bike
always thinks for the Hero Honda. It shows the prosperity of Hero Honda
Limited. To know about it we have need to go in past.
It was the 50s and 60s when a unit engaged to produce cycles with
name of Hero Cycles Limited. Till 70s and 80s they produced cycles, but
in 1984 they made collaboration with Honda Company of Japan and
started producing motorcycles. In 1985 they introduced their first Bike in
market since then they have made very significant progress in producing
Bikes and come out as giants of Automobile in manufacturing
motorcycles.
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Historical Prospect of Hero Honda
Limited
1984 Establishment of Hero Honda Limited (After
collaboration between Indias Hero Cycles Limited
and Japans Honda Company)
1985 Introduced a first bike in motorcycle market.
1994 Manufactured 3.5 Lacks motorcycles in a financial
year.
1996 Hero Honda captured 65% of market particularly in
Gujarat, and in whole India. They got 55% of the
market compared to other auto companies.
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Company Profile
1984 Entered in the motorcycle with the Hero
Moped in Industry
1985 On 1st February they launched Japanese
collaboration 100 cc, CD-100
1989 On 15th August, they launched HERO
HONDA SLEEK
1991 Introduced another nice model CD-100 SS
1995 Introduced the revolutionary new model
HERO HONDA SPLENDOR
1997 Introduced another fantastic four stroke bike
100 cc motorcycle HERO HONDA STREET
1999 Introduced with latest technology and
designed bike HERO HONDA CBZ
2000 Launched another nice model HERO
HONDA DAWN2001 Introduced with attractive designed and latest
technology HERO HONDA PASSION
2002 Introduced another powerful bike HERO
HONDA AMBITION
2003 Introduced another powerful bike HERO
HONDA ACHIEVER &GLAMOUR
2004 Introduced the fantastic bike of the century
HERO HONDA KARIZMA
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History, Growth and Development of
Perfect Auto Service
The foundation of Perfect Auto Service was in 1987. The head
quarter is in Ahmedabad and Head Office is in New Delhi. As a dealer of
Hero Honda, Perfect Auto Service has been working since long time in
Rajkot. The Perfect Auto Service started for Mopeds & Bikes.
Honesty is the main principle of Perfect Auto Service and theydont charge even a single rupee more than with the looking and
performance of the customers.
Today the Hero Honda offers an unbeatable range of motorcycles to
suit possible need by featuring the latest technology of manufacturers of
highest quality standards.
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Project at a Glance
Name of the unit Perfect Auto Service
Address of the unit Perfect House,
Gondal Road, Vavdi,
Rajkot-360 004
Phone Number (0281) 2382101-4
Fax Number (0281) 2382105
Year of Establishment 1987
Nature of Product Consumable DurableName of Chairman Suryakant Dhuleshiya
Name of M.D. Suryakant Dhuleshiya
Name of Marketing
Manager
Mayurbhai Jala
Area Office In Gujarat,
Ahmedabad, Baroda, Rajkot, Surat
Manufacturing Unit Haryana & Dhule
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Changing Role of Marketing
Over the years, marketing has undergone a tremendous change both
in its role and function. Now concepts and patters of thoughts have
emerged pressures of keener competition have force it to evolve new
methods & techniques to deal with the existing problems more efficiently.
Now a day, the firm takes up the responsibility of itself to design,
develop and sell its products to suit the needs of its customers. The firms
major innovative efforts are on entering the size of the market in which it
participates by introducing new products and services by promoting new
applicants for existing products and by seeking out new customers who
had not purchased the companys products earlier also. They will have to
select from a growing variety of media in planning, how best to
communicate with customers.
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Present Market Scenario
With the increase better standards of living increase exposure
through satellite television. The consumer durable market has been its
boom in the sales of consumer durable items, middle class people goes on
wide buying. Since the last few years, today vehicle is becoming an
important part of household. Customer always prefer vehicle, which is
smooth in riding, easy though fast, and also suit to, his personality. This is
the reason why people prefer Hero Honda, all feature, which require by
customers, are in their product.
Scenario of Hero Honda
As Hero Honda has wide range of product, which suit best to
customer and this results in making companies reputation very high and
after all results in good profit.
If we see the market condition, we can find the market share of
Hero Honda in competition with other companies.
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In Gujarat
Hero Honda 63%
TVS Suzuki 7%
Bajaj (Bikes) 18%
Yamaha 12%
0%
10%
20%
30%
40%
50%
60%
70%
Hero Honda
TVS Suzuki
Bajaj (Bikes)
Yamaha
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Index
SR. PARTICULARS PAGE NO.
1 Introduction
2 Product Mix Strategy
Introduction
Product Line
Features
Design
Brand Name
After Sales Service
Packaging
Warranties
3 Price Mix Strategy
Introduction
Pricing Objectives
Pricing Policy
Price List
Discount
4 Promotion Mix Strategy
Introduction
Advertising
Sales promotion
Personal selling
Publicity5 Place Mix Strategy
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Introduction
Selection of channel
Number of channel level
Market coverage
Transportation
Warehousing
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Introduction
Marketing is the bridge that diminishes the gap between the product
and consumer. Without marketing a production activities would have no
meaning. Only production is not enough equally to make consumer aware
of produced product. If consumers are aware of the product then
sometimes view and ideas of the consumers are taken into account that
what type of product they want, and on this basis product has to change
according to consumer needs. Thus the sum of total activities undertaken
to satisfy the consumer want and demands constitutes the activities of
marketing.
Marketing is comprehensive firm and it includes all resources and a
set of activities necessary to direct and facilitate to direct the flow of
goods and service from product to utility consumer in the chain of
distributing. In other words marketing comprises of all the activities
involved in the determination of consumer needs at a profit. Thus
marketing encompasses all activities set exchange conducted by producers
and middlemen in commerce for the purpose of satisfying consumer
demand.
In marketing planning, marketing information is used to assess the
situation specific marketing targets are selected in the form of marketsegments for each seem but a combination of a number of devices of
marketing activities that are reach a particular target segment is
formulated. The combination of these marketing methods of devices is
known as the marketing mix.
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Thus marketing mix is the set of marketing goals that the firm used to
pursue its marketing objectives in mix goals can be classified as under the
down head.
Product
Price
Promotion
Place
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Introduction
Product is the center around which all the activities revolve.
Without product all marketing activities becomes useless, people satisfy
their needs and wants with products. Products can be designed proud to
cover anything that can be offered range or someone in satisfy a needs or
wants. The word product brings to mind a physical object. We normally
use the expression product and services but in thinking about product,
their importance lies not so much in owing them as is using them to satisfy
our wants.
Manufacturers get into a lot of trouble by paying more attention to
their physical product then to the service produced by these products. The
marketers job is to sell the benefits or services built into physical product
rather then just describe their physical features.
Product mix is these of all devices that a particular server offers for
sale to buyer. The product mix covers the following point.
Product line
Features
Design
Brand name
Packaging
Warranties
Product mix is the collection of the products offered for sale by a
company. In other words product mix is the composite of product offered
for sales by company or firm.
The nature of the product mix is at times described by expression
like depth, width and consistency. Depth is used to the number of
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products, items offered by the company for sales. Width refers to the
patent of different product lines in the product mix offered by the
company. Consistency describes the relative ness of the various product
lines.
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Product Line
Product line is a group of products that are closely related to each
other, because they satisfy the need of each class of people and the price
and reasonability same in each and every market.
In todays highly competitive market, multiplying human needs and
enlarging diversification, no company is content with producing the single
product only.
Hero Honda in this situation assumes a great significance on
product line and product mix. Hero Honda mixes different models of
Bikes. Their prices, colors, and capacity differ in different bikes and
mopeds. It require because every person has not the same choice.
Therefore to meet consumer requirement Hero Honda establishes their
product, which suit best for customers.
Product line manages need the types of information. First they must
know the sales and profit of each item in the line. Second they must know
their product line.
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Product mix of Hero Honda
BIKES
CD 100 DLX Automatic
Sleek Standard
CD 100 SS Shakti 3g
Splendor Turbo Sports
CBZ Hero winner
Dawn
Passion
Ambition
Achiever
Glamour
Karizma
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Product line of Hero Honda
CD 100 DLX Red, Black
SLEEK Red, Black
CD 100 SS Red, Black
SPLENDOR Black, Candy Ruby Red,
Warakoram Gray, Green
STREET Red, Black
CBZ Black, Tasmania Green, Tanitian
Blue, Candy Blazing Red
DAWN Red, Black, Silver, Candy Blue
AMBITION Blue Candy, Blazing Red,
Marroon, Moon Yellow, Myth
Gold, Chill Green, Black
PASSION Candy Blazing Red, Blazing Blue,
Gray
ACHIEVER Black, Candy Blazing Red, Candy
Tahitian Blue, Chilli Green
Metallic, Moon Yellow, Myth
Gold Metallic
GLAMOUR Candy Blazing Red, Cloud Silver
Metallic, Tornado Grey Metallic,
Impulse Orange Metallic,
Excellent Blue Metallic, Vibrant
Green Metallic, Black, Forest Blue
Metallic, Palace Maroon Metallic
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Design
Design reflect the out look and features of the product which makes
it different from other product. Designing a product is a special and very
tough job. Various aspects of the products are to be kept in mind while
designing a product. These may include differentiation, features,
characteristics, performance, durability, reparability, style etc.
Design is the interacting force with all the features as its parameters.
The designer has also to keep in mind the capital allocated from the
companies point of view. A well-designed product would be pleasant to
look, easy to open, install, learn how to repair and dispose etc. The
designer has to take all target market and weights the different benefits
and costs.
Hero Honda always takes care of design of their product. They
always research for it and give best suit to their valuable customers.
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Introducing new Splendor and Street in 1997 they show their
awareness about design. It is a perfect blend of design, style and
substance.
Introducing their newest model Hero Honda CBZ in 1999, they
have proved that they are leader in designing.
CBZ is the fantastic model in bikes. Its unbelievable design attracts
every one to purchase it and drive it.
Dawn launched another nice model in 2000 and it is take care of
design so that, introducing Passion in 2001, and another powerful Hero
Honda bike in 2002. By introducing Achiever, Glamour & Karizma they
have secured their monopoly in bike market.
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Brand Name
Brand name refers to that name through which the products of the
company are recognized. Brand name can be name, term, sign, symbol, or
design or a combination of them, intended to identify the goods or services
of one seller or a group of seller and to differentiate them from those of
competitors
Brand name is the most important of any product because it is the
identification of the product. Brand name may be companys name or it
may be different. As the better know the brand name, the higher will be
the sales.
A powerful brand name is said to have consumer franchise. This is
evident when a sufficient number of customers demand that brand and
refuse a substitute even if the price is somewhat lower. Today the brand
name is such a strong race that hardly anything goes understand.
The brand name of Hero Honda is based on the name of
collaboration between two companies in India and Japan. Indias Hero
Company and Japans Honda Company to form the name Hero Honda
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After Sales Services
Services are activities, benefits or satisfaction that are offered after
sales. In other words, a service is any act or performance that one party
can offer to another that is essentially intangible and does not result in the
ownership of anything.
Firms that provide high quality services undoubtfully perform their
best services e.g. the manufacturers could make an arrangement with
distributors and dealers to provide these services. Thus the customers
durable market is highly competitive in terms of after sales services.
Sometimes its happen that the company increases a high cost burden in
terms of after sales services. But the company inspite of its cost burden
benefits in long run. Thus, companies prefer to incur high cost rather than
losing their potential customers.
Thus, after sales service is important part for any company to
sustain in todays competitive market. It is the device to pursue customer
and earn huge reputation.
Hero Honda has an extensive dealer network and age staff that canreach to obey customers at any time. Hero Honda servicing centers are
also in the form of authorized dealers. The Hero Honda also offers service
coupon for the service of various Bikes. Generally they give 3 services in
all motorcycles but in the new model like Street, Splendor and the newest
CBZ, they provide more than 3 services.
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Sometimes they also arrange such a campaign in which their
customer can service their Bikes totally free & if any parts require they
provide at a discount.
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Packaging
Packaging can be defined as the activities of designing and
providing the customer or wrapper for a product. The container or wrapper
is called as packaging. The package might include 3 level of material. The
primary package is products immediate container. The second package
refers to the material that projects the primary package and is discarded
when the product is about to be used.
Almost all physical products going to the market are packaged and
labeled. Packaging plays a major role in case of expensive, delicate and
high percentage of breakage products. Many marketers have called
packaging as the 5th P of marketing mix.
Packaging depends upon the nature of product. It means that what
type of product is and in terms of physical nature. Some products can
easily packed in container where as some products require special
container and some product cannot be packed in container. Therefore to
pack that type of product, it requires special material, which covers only
that portion of product, which is delicate and may be damaged as the case
of Bikes.
As Hero Honda produces Bikes, they take due care for their
packaging. Whole body of bike is covered with thermo coal.
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Warranties
Product warranties are an important promotional tool especially as
consumers become more quality sensitive. Warranties means authority or
justification that the thing sold is fit for use and the producer accepts
reproducibility for repairs within a period of time.
The company can promote sales by adding a free warranty or
service contract. Warranty forms an important part of customer durables.
Customer always expects a longer period of warranty. But the cost burden
on company is very high and the company has to perform cost benefit
analysis. While deciding the period and scope of warranty only that policy
should be selected where the benefits out run the cost. But it is very
difficult to calculate and maintain balance by cost and benefits.
The warranty period of Hero Honda Limited is one year. The
company replaces all the parts & movements, which suffer within a period
of one year from the date of purchase. Even after the warranty period is
over, the retailers replace the parts but they charge the customers at a
lower rate. This is beneficial to both the retailers even if they replace the
parts after the warranty period and the customers get replacement benefitat a lower rate.
Thus, the benefits are a long-term benefit. These benefits are in
terms of customers royalty, brand approach, positive feedback, dealer and
retailer royalty, etc.
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Introduction
The price mix of any company should cover the following area:
Pricing Objective
Pricing Policy
Discount
Allowance
Credit Terms
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PRICING OBJECTIVES
For any business activity is performed properly, its objective must
be determined. Pricing is not possible unless a definite objective is clearly
defined. Though it is difficult to know the subject, which manufacturers
keep in mind while fixing prices of their product?
Survival
Companies pursue survival as their main objectives if planned with
other companys interest, competition or changing customers behaviour
to keel the plant going and the inventories turning over the carry out.
Maximum current profit
Many companies try to set the prices that win maximum current
profit. They estimate the demand and costs associated with alternative
price and choose the price and that produce the maximum profit and cash
flow or rules of return on investment.
Current revenue
Some companies set a price to earn maximum sales revenue.
Revenue maximization enquires only estimating the demand function.
Many managers believe that revenue maximization will lead to long run
maximization.
Maximum sales growth
Other companies want to maximize unit sales. They believe that
higher sales volume lead to lower unit cost and higher long run profit.
They set the lowest price assuming a market price is sensitive.
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Maximum market skimming
Many companies setting its prices to skim the market. The
company sets that price that makes it just worthwhile for some segmentsof the market to adopt the new material.
The Pricing Objectives of Hero Honda Limited
Price stability
Hero Honda is one of the companies in Bikes and Mopeds market in
India, which call for long-term interest of the business and aim at a price
stability. This attempt is not to let price fall low during depression and rise
to high during boom.
To increase market share
The main objective of Hero Honda Limited is to get maximum
market share in scooter market, so they have to set their prices at definite
level by which they can increase their market share.
To meet competition
Hero Honda has adopted such a price policy that helps the company
to meet the competition in the market successfully.
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PRICING POLICY
Pricing policy is the standing answer of the firm to require problem
of pricing. It provides guidelines to Marketing manager to solve
appropriate pricing decision. If competition is mainly on price basis then
each marketer generally prices their product at the same time to level their
competition.
In present era, most of the companies adopt a way to take
reasonable price on its product and capture the market. Thus in present
era, companies have no more interest in maximum profit but in capturing
the market. As we know that the bikes and mopeds of Hero Honda
Limited are available at reasonable price and greater style.
Hero Honda Limited itself sets up the prices of bikes and moped.
We can see in the below chart that Central Sales Tax, Gujarat Sales Tax,
etc. should be paid according to the rules and regulations of the
government.
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Price Structure
Particulars Amount (Rs.)
Factory price
Add: Forwarding, Handling & looking charges
--------------
--------------
Balanc
e
--------------
Add: Central Excise Duty
Add: Freight Charges
-------------
-------------
Net DealerPrice
------------
Add: Commission -------------
Retail
Price
-------------
Add: Rajkot Municipal Corporation Entry Tax
Add: Gujarat Sales Tax (4%)
--------------
--------------
Ex-show Room
Price
--------------
Add: RTO Tax
Add: Insurance & Accessories
--------------
-------------
-
On Road
Price
-------------
-
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PRICE LIST
Any company, which adopts the dealer-retailer channel of
distribution, has to be very careful while formulating its pricing objectives
and pricing policies. Thus, companies circulate price lists periodically in
order to make the dealers, retailer and customer aware of the price of a
product is to be sold. The price at which the product is to be sold is usually
printed on the package.
The prices of every company are revised and reprinted from time to
time depending on the changes in the pricing policies, tax rates, etc. of the
government. The pricing policies of the company also changes with
technology used by the company, change in the price objectives of the
company, change in the management strategy of the company and various
other changes that affect the price of the product manufactured by the
company.
Price list form an integral part of the framework of the company.
They are a proof to the companys pricing policy. To the company it is a
statement, which indirectly shows the future profit. No dealer or retailer
can charge a price, which is above the maximum price set by thecompany. It is matter of pricing policy of the top management to decide
how and when it incorporates price changes and revises the price list.
DISCOUNT
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The term discount means a deduction in the nominal value of the
price or amount from the product. In other words, discount is the amount,
which is taken off the face price of the product. Most companies modify
their basic price to reward the customer purchase and off-season buying.
These price adjustments are called discount. Discount is very popular tool
in the hands of top management to increase sales. The companies make
efficient use of this tool to expand their market. Discount being a
reduction in the original price of the product are relatively cheap form of
attracting new customers and sustaining old ones.
Discount depends upon the nature of product. In such product, one
can easily give discount. Bikes, Mopeds and scooter are not the product on
which discount can bi given. Therefore, Hero Honda Limited sticks on
price of their product.
INTRODUCTION
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It is unanimously accepted that Nothing happens until somebody
promotes something. You may have the best product, price of purchase
but even though people will not buy your product, if they havent come
across it and simply aware of its existence. The marketer must
communicate their prospective buyers and provide them adequate
information regarding product. The main job of promotion in marketing
mix decision is Right product must be available in right time and at right
price.
Broadly speaking, promotion means to push forward or to advance
in ideas in such a way as gain in acceptance and approved promotion is
any communication activity whose main objective is to move forward a
product, service or idea in any channel of distribution. It is an effort by a
recommended use of the articles, service or idea, which is being promoted.
Promotion is a form of communication with an additional element of
persuasion. The promotion activity always attempts to affect ideas,
products, services, etc. is the heart of promotion.
Modern marketing causes for more than developing a good product, pricing attract lively and making it accusable to target customers
company must also communicate with their present and potential
customers. Every company directly to indirectly plays the role of
communication and promotion. To communicate effectively companies
hire advertising agencies to develop effective advertisements, sales
promotion specialist to design sales incentives program and public
relations firms to develop corporate image. They train their salesman to be
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friendly and knowledgeable. For most companies the question is not
whether to communicate but rather what to say to whom and how often.
A modern company manages a complex marketing communication
system. The company communicated with its middleman, consumer and
various publics. The marketer must communicate to its prospective buyers
and provide them adequate information in a persuasive language. The
people must know that the right product is available at the right place.
Sales will not take place automatically without promotion or marketing
communication even though the product is of the best quality. It is an
important marketing strategy and fulfills the marketers to communicate
with the customers.
Essentially promotion is persuasive communication to inform the
prospective customers is responsible for walking and stimulate demand,
capture demand, from rivals and maintain demand for the product even
against keen competition.
Marketing have adopted a communication view of the firms
promotional activities receives is not regarded as an active caution.
Promotion includes the following:
Advertising
Sales Promotion
Personal Selling
Publicity
ADVERTISING
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We can define advertising as any form of non-personal presentation
of ideas, goods or services by an identified sponsor. Advertising is the
most important tool of promotion. There will be hardly any field of
business in which advertising is not used for scores expansion, it is not
exaggeration, and we say that modern age is the age of advertise. It is the
foundation of modern trade and industry.
Advertising is one of the most common tools the company uses to
direct persuasive communication to target buyers and public. We may
define advertising as:
Advertising is any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor.
From above discussion, we can say that each & every company,
whether public or private has to advertise for its survival. Hero Honda
Limited has also undertaken the advertising programme to promote the
sales because it knows that advertising has the following strength.
It offers planned and controlled stage.
It can contact and influence number of people simultaneously
quickly and at a low cost per prospect.
It can reach prospect that cant be approached by salesman.
It can be very useful to create maximum interest and offer adequate
knowledge.
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OBJECTIVES OF ADVERTISING
The first step in developing an advertising programme is to see the
advertising objectives. According to Hero Honda Limited those objectives
must flow from decision on the target markets, market positioning and
marketing mix. The Hero Honda Limited has undertaken the activity of
advertising with a view to attain the following objectives:
To Inform
Telling the market about new feature of product.
Suggesting new uses for a product.
Informing the market of a price change.
Explaining how the product works.
Describes available services.
Correcting false impression
Building a company image.
To Persuade
Building brand preference
Changing buyers perception of product attributes
Persuading buyers to purchase
Persuading buyers to receive a sales call
To Reminding
Reminding buyers that the product may be needed in near future.
Reminding buyers where to buy it.
Keeping in mind during off-season
Maintaining its top-of-mind awareness.
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MEDIA OF ADVERTISING
The term media is a phrasal form of medium. In advertising term
medium is a channel of communication such as TV, Newspapers, Radio,
etc. A media is a vehicle for carrying the sales message of an advertiser to
the prospects. It is needed a vehicle by which advertiser convey their ad in
reducing gap in between products at one hand and consumer at other.
The sales media depends upon various features such as:
The financial allocation for advertising.
The nature of product and the demand for it.
The nature of competition and the extent of coverage require.
Cost of media, co-operation and the promotional aids offers media
circulation.
Right media of advertising will enable the advertiser to deliver the
message effectively to the intended market or prospect. The different type
of media can be analyzed as under.
Media of Advertising
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Press
Media
Broadcast
Media
Outdoor
Media
Direct
Media
Transit
Media
Newspaper Radio Posters Circular
Letter
Bus
Magazine Television Wall
Painting
Catalogue Car
Trade
Journals
Film
Screen slide
Sky
Advertising
Electric
Display
Hoardings
Price list
Personal
Letter
Trains
Airplanes
Hero Honda Limited, generally uses mostly press media, broadcast
media, out door media and sometimes transit media for their
advertisement. As Hero Honda Limited is a giant group in manufacturingBikes and Mopeds they are taking due care for advertisement of their
products.
They are giving their advertisements regularly in all media they are
using for advertisement; following are some medias in which they
advertise.
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Newspapers
Newspaper is the best media for advertisement of any product orservice. Through newspaper, the message of any producer can reach to
each & every person.
Hero Honda Limited has selected newspaper as its media of
advertising because it is the most effective media. It has general & wide
appeal. They are flexible periodical change in size and contents are also
easy. At local level they are using different newspapers in different cities.
(Sandesh & Gujarat Samachar for Rajkot City)
City Newspaper
Mumbai Times Of India
Delhi Hindustan Times
Calcutta Telegraph
Chennai Hindustan Times
Ahmedabad Times Of India
Bangalore Deccan Herrid
Hyderabad Deccan Cromic
Lucknow Times Of India
Pune Indian Express
Baroda Indian Express
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Magazines
Magazines are considered to be the most effective media through its
coloured attractiveness. Magazines have largest life and greater value
reference value. Further they are using magazines for advertisement
because selective appeal is possible through it. The magazines have most
circulation form.
Hero Honda Limited is also giving regular advertisement in
magazines. They use special magazine for bikes.
For Motorcycles Sports Star
Cricket Samrat
Sports World
For Mopeds Chitralekha
Abhiyan etc.
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Television
In the last 2 to 3 decades, the television network has developed andgrown tremendously. In India there are hundreds of television stations,
which relay the programme through Doordarshan. Apart from this, there
are other channels also like Star, Zee, Sony, etc., which provide their best
programmes. This has been proved to be an ideal medium for
entertainment and information transfer. Now-a-day sponsored programme
are very common on television. Television is high frequency media with
an immediate impact.
Hero Honda Limited is using television as important media. They
advertise their product Zee TV, Doordarshan, Sony & other popular
channels before popular programme or between programmes, so that they
can attract more customers.
Virendra Utpal (Marketing Manager) is giving more importance to
television advertisement because it can appeal through ear as well as eyes
and can be demonstrated with explanation. It reaches the guidance of
almost like personal salesmanship. Thus, it is really wonderful mean of
communication for creative marketing.
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Advertisement Campaign of Hero Honda
on Television.
Hero Honda Womens World Cup
Hero Honda Limited was official sponsor of World Cup Cricket
1999, England
Hero Honda Limited always arranges and sponsors the one-day
international cricket match series.
Film
Generally big business houses prepare their advertisement film and
get them display in cinema houses.
Hero Honda Limited uses this type of media, when they are
introducing their new model of bike. They make short film and display in
cinema houses, which is more impactive to new introducing model.
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Out Door Advertising
Outdoor media is also very important part of advertisement. Thebenefit of outdoors media is that it is eases and lower cost programme
therefore everyone can afford.
Hero Honda Limited has adopted posters, hoardings, electric
display and sometimes sky advertising. They always set their hoarding in
city at the place where most of the people passes by and get attracted
towards it.
Sometimes they also uses wall painting. They always set their
electric displays outside their showroom, which attract customers and
sometimes they set bat down with their name in the sky while they
sponsor cricket matches.
Hero Honda Limited is taking care of some important things while
giving advertisement through this media such as the place of posters,
hoarding, and electric display. They obey the rules & regulations laid by
the government.
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ADVERRTISING AGENCY
A modern advertising agency with specialized knowledge, skill and
experience, which are required to produce an effective campaign.
Advertising agencies has a specialists work together to understand fully
the advertisers requirement of an advertisement campaign and develop
suitable advertising plans & strategies. By certain advertisement and
delivering plans and strategies. A modern advertising agency is the
foundation from which flow most of the advertisements, which we see and
hear in the national and regional media.
Hero Honda Limited has also taken the help of very popular
advertising agency Hindustan Thomson.
Reasons for using Advertising Agency
The company cannot have all types of specialists such as
copywriters, design staff, market research, etc. The agency has these
highly qualified specialists on a department basis because their costs are
spread over many advertisers. Hence it is economical and cheaper to use
advertising agency.
The agency can be unbiased or objective view if an advertisement
problem. The avenue can see that product, its merits and demerits through
the see of the buyers who are also outsiders. This objective is not possible
for an advertisement department of the company.
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Finally the media owner pays the agency. The company pays
nothing for it, an agency that is buying advertisement space.
Hero Honda Limited gives the design, size, colour, and etc. of
different type of bikes and mopeds of the agency. Then advertisement
agency finalizes the advertisement. Thus the function of creation and
development of advertisements are complete.
Selection of Media
Placement of advertisement, research, studies of agency
characteristics are performed by Hindustan Thomson. It receives 15% of
commission from media owners.
Advertising Theme
The theme or appeal is the central idea around which the
advertisement is created. It is called unique sales separation. There are
various themes used in an advertisement to sell its product or services. The
selection of the theme is usually made by the theme of consumer study
and research.
Hero Honda Limited has conducted customer research study. In this
study they have found that the knowledge of the types of perspective
customers, their pattern of living, class from which they belong and kind
of approach they need. The advertisement theme is a heart and soul of the
advertisement and message. After proper consideration Hero Honda
Limited has selected following theme for their products.
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Theme of Pride
Generally motorcycles of Hero Honda Limited are sold with the
theme of pride appealing to upper middle class and rich class. Easy to
city ride and the wheel in India is the statement showing the pride and
design of excellence showing the pride.
Theme of Comfort
Hero Honda Limited has given more stress to this advertisement
theme because comfort is the most important element for the domestic
goods. They have given importance to the comfort through showing the
technical features of the product. City ride made easy and Fill it, shut it
and forger it shows comfort for customers.
Theme of easy in Operation
This is necessary theme for any product. Hero Honda Limited has
look after for more easily in operation and customer can use it whenever
required. In Hero Honda Street they made it easier in operation that there
is no need for kick-starts as self-start system is available.
Theme of mode selling
They re giving more stress through the selling line
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Value of money for years
Fill it, shut it, and forget it
Designed to excel
Motorcycling unplugged.
It makes more impact in the mind of customers and they will be
ready to purchase the motorcycle of Hero Honda Limited.
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SALES PROMOTION
Sales promotion is an important instrument to lubricate the
marketing efforts. Today sales promotion is new and not merely a luxury
or a fashion. It is an integral part of marketing efforts. Sales promotion is
entered to activities, other than salesmanship, advertisement and publicity,
which stimulate consumers purchasing and dealer effectiveness. It consists
of diverse collection of invoice tools mostly short-term designed to
structure quicker and greater purchase of particular products by consumer
or sealers. In short where advertising offers reason to buy, sales promotion
offers incentives to buy.
Tools for sales promotion
Many sales promotional tools are available to accomplish sales
promotion objectives. The planner should take into account the type of
market, sales promotion objectives, and competition and cost effectiveness
of each tool.
Following are the main sales promotional tools:
Consumer promotion
Trade promotion
Sales force promotion.
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Consumer promotion tools
Following are the main consumer tools of Hero Honda Limited. Free Trials
Hero Honda Limited provides Free Test Ride at dealers show
room to their customers at the cost. They are providing free test ride on
CD-100, CD-100 SS, Street, and Splendor.
DemonstrationAll the vehicles of Hero Honda Limited are demonstrated at the
show room of dealer. Not only the vehicles itself but also the accessories,
which are used in product is superiority in operation.
There are other consumer promotional tools are there like coupons,
cash refund, premium, percentage rewards and gifts.
Trade promotion tools
Hero Honda Limited regularly arranges trade promotion activities.
Following are some trade promotional activities, which are performed by
Hero Honda Limited.
Display in exhibition and fair, etc.
Hero Honda Limited takes part in fair. Generally at the time of
festivals like Navratri, Janmashtami they display their new bikes in fair.
They also take part in trade fair, which are arranged and organized
by some club or association. They display and demonstrate their new
models there.
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Sales contest
Hero Honda Limited has its wide dealership network. Therefore, the
first is to decide the sales target of each and every dealer. Dealers areprompt for higher selling and at the end of year, selling of dealers match
with target and whomever dealer gets best selling is liable for best reward.
This results in best performance & clears maximum profit for company.
Sales force promotion
Hero Honda Limited performs force promotion activities. It is very
much necessary to promote sales force of their company to reach at target
sales and perform other activity affectively.
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PERSONAL SELLING
Personal selling is the process of including and excluding a perceive
buyer to note a commodity services or to favorable upon an idea that this
commercial significance with the seller. Personal selling is highly
distinctive and the only form of personal selling involving face to face
relationship or communication between sales person and one or more
prospective customers.
Now-a-day, personal selling is increased in the consumer durable
market. But so far as Hero Honda Limited is concerned, they are not
performing personal selling regularly and continuously. However, they are
practicing when any new model of Bike or Moped is to be introduced in
the market.
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PUBLICITY
Publicity is a non-personal stimulation of demand for a product,
service or a business unit. By placing commercial significant news about it
in a publication or obtaining favorable presentation of it on Radio, TV or
Magazine that is not paid by the media sponsor.
For Hero Honda Limited, publicity is one of the promotion mix,
which cannot be ignored in any case. Till today many articles regarding
the company is published in local magazines such as Abhiyan and
chitralekha, etc. Through publicity of its company Hero Honda Limited
has created own goodwill in market.
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INTRODUCTION
More production of commodity is not enough but is must reach to
the right man at right time and at right place. In marketing point of view
place mix strategy is the 4th important P or important element of the
marketing mix strategy. It has 2 sub divisions.
Channel of Distribution
Physical Distribution
Channel of Distribution
Channel of distribution is the best marketing institution
participating in the marketing activities involved in the movement or the
flow of goods or services from the primary producer to the ultimate
customer. In the field of marketing the channel of distribution indicates
routes in pathway through which goods and services flow or move from
producer to consumer.
Physical Distribution
Physical distribution consists of marketing activities related to the
physical looking of goods such as protective packaging; order processing,inventory management, transportation and warehousing.
If you build a better mousetrap, the world will heat your door. But
too often the customers must have the delivery of that better mousetrap at
the right place, at the right time and at right quantity. The physical
distribution function use other half of marketing is responsible for
completing the marketing transaction.
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SELECTION OF CHANNEL
The problem of selecting the best distribution channel is most
complex. There are many factors affecting the channel choice like nature
of the product, marketing environments, etc. These all are very important
factors for determination of distribution channel. Every marketer has to
consider all these factors at the time of selection of the distribution
channel and selecting channel member. Hero Honda Limited takes the
following factors into consideration.
Financial Condition
Before appointing a dealer or agent or retailer Hero Honda Limited
find out the financial condition. If the financial condition is sound and if
executives of Hero Honda Limited are satisfied with these conditions, then
Hero Honda Limited looks for further aspect.
Location
Other thing, which Hero Honda Limited considers, is location. It is
the most important for wide market coverage. Generally show rooms of
Hero Honda Limited are located at the center point of the city or at the
place from where most of the public passes by.
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Reputation in the market
This is considered to be goodwill of any dealer of Hero HondaLimited. They take full bio-data of person, who has proposed his/her name
for dealer of Hero Honda Limited and person must have good reputation
in society.
Experience & knowledge
Hero Honda Limited considers experience and knowledge of
person. They consider about the experience of person in some business or
in small business and other things. They consider knowledge. Person must
have good knowledge of market, present scenario, competition and other
essential things.
Provision for after sales services
If dealer, retailer or wholesaler are ready to give after sales service
to customers, then Hero Honda Limited take particular decision for
selection. Not only this, Hero Honda Limited has offered the after sales
service on its vehicle.
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NUMBER OF CHANNEL LEVEL
Distribution means to distribute, spread out. In the field of
marketing channel of distribution indicates routes or path through which
goods and services flow from producer to consumer. Thus the channel of
distribution flow on:
Information
Marketing communication
Material
Manpower.
Hero Honda Limited has good channel of distribution to meet the
consumer demand. They had appointed nation wide dealers. Their dealers
are spread all over India. Hero Honda Limited is producing & distributing
to their dealers as and when needed. And from dealers it reaches toultimate customers.
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Plants of Hero Honda Limited
(Dhule, Haryana)
Dealer (Perfect Auto Service, Rajkot District)
Consumers Sub Dealers
Consumers
As authorized dealer of Hero Honda Limited, Perfect Auto Service
has appointed some sub-sealers to reach at the maximum customers and
customers can reach to them with minimum efforts. Through appointing
sub0dealers one can easily reach to the consumer who are not quickly
come across to cities.
Market Coverage
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Once the general channel decide it has to be used to increase in the
share of market coverage. It is an important activity while the company is
passing from the period of stability. The Hero Honda Limited has secured
keen position in the corporate market. Hero Honda Limited is number one
motorcycle producer in India. They secure 55% of market share in
competition with their competitors.
It is true that Hero Honda Limited has get substantial and wide
market in India, but if we think in global sense and compete with
motorcycle manufacturers of whole world, then what is the position of
Hero Honda Limited? Answer is very simple that at international level
they secure 8 to 10% market share. Hero Honda Limited vehicles are
generally sold in the East & South America and other countries like
Argentina, Mexico, Paraguay, Venezuela, Indonesia, Japan and China.
Transportation
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Marketer needs to be concerned with their companys transportation
decision. Transportation choice will affect the price of the product on time
delivery performance and the condition of the Hero Honda Limited, which
they arrive all of which affect consumer satisfaction. Transportation is
cause of problems of physical distribution. It is sometimes caused the
guardian knock of physical distribution.
Hero Honda Limited has made contract with road line transport
companies for the transportation of vehicles.
Warehousing
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Every company has to store its goods, as they cant be sold
immediately. Storage function is necessary because production and
consumption is rarely matched. The company must decide on a desirable
number of stocking locations. More stocking locations means that goods
can be delivered to customers more quickly. The number of stocking
locations must strive a balance between customers service level and
distribution costs.
So far as Hero Honda Limited is concerned, it is not the practice of
the company to provide warehousing facility to the dealers. Hence to
make arrangement of godowns for the storage of vehicles Perfect Auto
Service has very big warehousing.
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Index
SR. PARTICULARS PAGE NO.
1 Meaning & Importance of Marketing
Research
2 Objectives of Marketing Research
3 Scope of Marketing Research
4 Questionnaire
Meaning & Importance of Marketing
Research
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Mostly marketing research involves studies related to buyer
behavior, brand preference product or brand usage, advertising awareness,
sales promotion, physical distribution, dealer behavior, competition & so
on. The simple meaning of research is that it is the process of gathering,
recording & analyzing of critical & relevant facts about any branch of
human activity. It indicates critical & searching study and scientific
investigation of problem, a proposed course of action hypothesis or a
theory while marketing research is the systematic gathering, recording &
analysis of data about problem connected with market product, price,
promotion & destination. It is connected with all those factors, which have
a direct impact on the marketing of products and services. Marketing
research is a process of manufacturers like what to produce? How to
produce? When to produce? It works as the bridge between producers &
consumers.
The marketing research is directly interested in offering sound
alternative solution to marketing problem relating to exchange of goods
and services from producer to consumer. Beginning and end of marketing
management is marketing research. In a dynamic economy, marketing
research acts as the investigate arm of marketing manager. As now a day
are competitive in nature and so many competition comes in to a market
so with the help of marketing research both the aim the information
regarding customer demand and new competitors can be obtained
immediately and best action can be taken.
Objectives of Marketing Research
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An objective is precondition of any work. To determine the
objectives is the 1st step in the planning process. Once the objectives are
determined the way are easily found out. Objectives are guidelines for
completing the work. The principle of objective is the study to know the
attitude, preference and buying behavior of consumer, which never
remains constant over a time period. Following are the major objectives of
this study.
To know consumer awareness about various models of Hero Honda
Limited.
To know perceptions and preference of customers regarding various
model.
To know consumer satisfaction regarding product and brand.
To know media of advertising adopted by dealers.
To study tools of publicity adopted by dealers.
To study factors, which plays important role in increasing sales of
Hero Honda Limited.
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Scope of Marketing Research
The scope of study was to understand the thinking of consumer
toward Hero Honda Limited. How do they react to the comfort and
convenience gives? How much they are satisfied against their buying
decision? Which factors motivated them to make decision of purchasing
Hero Honda? Thus the scope can be specifically highlighted as below
mentioned.
To pinpoint the features, which persuade and influence the buying
decision of purchasing Hero Honda
To find out their satisfaction in accordance with their paying value
What is the problem of Hero Honda in the minds of consumer?
It also includes the income analysis and present Hero Honda
Holders
Study of different influence & attributes.
.
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Limitations of Study
The research report suffers from many limitations, as all the
resources for carrying out research were limited. Some limitations are
given as under.
(1) It is only confined with Rajkot city, so the coverage is very narrow.
(2) The data collection is done only through questionnaire. Thus, it
lacks the support of personal interview and observation method.
(3) Moreover questionnaire consists only 12 questions. For detail study
more information is required.
(4) It is a survey of only 100 respondents. Sample size is only 100,
which is very small to take strategic decisions.
(5) Time constraints and limited number of questions make it difficult
to have required information from customer.
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Conclusion
On the basis of project work of Hero Honda Limited undergone at
Perfect Auto Service, it can be concluded that the position of the Hero
Honda Limited is corporate field is very strong. The well-experienced,
efficient and industrious sales force is the strength of it. The value of Hero
Honda Limiteds vehicle is more than that of competitors.
Sophisticated mass production technology including the latest
machinery and equipment for material handling, precision high volume
machines, robotic welling automated painted and conversed vehicle
assembled them to rule the market amongst others.
Each vehicle has to pass through a lot of quality control checks.
Thus such a faculty does not only consumer tooling which meet precise
standards but also reduces the lead-time for introducing maker model.
Quality control is exercised in every good engineering company and with
Hero Honda it appeals to be way of life.
All the Hero Honda bikes have strong and nice engine and it will
obey the pollution control rules and regulations. All the products of Hero
Honda have made an agreement with Japans Honda Company for the
development of four-stroke engine.
At present Hero Honda Limited is enjoying monopoly in the fieldsof bike. It is trying its level best to secure more market coverage and
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trying to introduce new products to cover international market and can
compete with worlds giants in motorcycle manufacturers.
Suggestions
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Hero Honda Limited has high qualified, well-experienced and wide
experienced executives, who always try for giving their best. Though
following are the main suggestions according to my knowledge.
(1) In recent time there is high crisis of fuel like petrol, diesel, and etc.
Therefore company should research for alternative of this fuel like
solar energy or LPG
(2) Sometimes it happens that the person who wishes to buy
motorcycle, but he cannot buy it because of higher prices of
motorcycles, therefore the company should design motorcycles of
lower cost so customer can afford it. As against there should be not
more changes in technology of motorcycles.
(3) It happens that in some region or city the demand of their product is
high and in some region or city their demand is low. Therefore the
company should try to have research for it, that why such things
happened and take proper measures according to satisfaction.
Bibliography
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Marketing Management
By: Philip Kotler
Modern Marketing Management
By: Stanton
Essentials of Business Organization & Management
By: Sherlekar and Janardhanan