Hero Honda Theory

“A Study on Buying Behaviour of Consumers”

INTRODUCTION

1.1 BIRTH OF AUTOMOBILES IN T HE WORLD:

The History of the Automobile actually began about 4,000 years ago when the first wheel

was used for transportation in India. Several Italians recorded designs for wind-driven

vehicles. The first was Guido da Vigevano in 1335. It was a windmill-type drive to gears

and thus to wheels. Vaturio designed a similar vehicle that was also never built. Later

Leonardo da Vinci designed clockwork-driven tricycle with tiller steering and a differential

mechanism between the rear wheels.

In the early 15th century, the Portuguese arrived in China and the interaction of two cultures

led to a variety of new technologies, including the creation of a wheel that turned under its

own power. By the 1600s, small steam-powered engine models were developed, but it was

another century before a full-sized engine-powered vehicle was created.

A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-powered

vehicle for the Chinese Emperor Chien Lung in about 1678. There is no information about

the vehicle, only the event. Nicolas-Joseph Cugnot of France is considered to have built the

first true automobile in 1769. Designed by Cugnot and constructed by M.Brezin, it is also

the first vehicle to move under its own power for which there is a record. Cugnot’s three-

wheeled steam-powered vehicle carried four persons and was meant to move artillery pieces.

It had a top speed of a little more than 3.2 km/h (2 mph) and had to stop every 20 minutes to

build up a fresh steam.

Evans was the first American who obtained a patent for “a self-propelled carriage.” He, in

fact, attempted to create a two-in-one combination of a steam wagon and a flat-bottomed

boat, which didn’t receive any attention in those days. During the 1830’s, the steam vehicle

had made great advances.

S.S.M.R.V DEGREE COLLEGE | BBM, MARKETING 1 | P a g e


1.2 ORIGIN OF THE TWO WHEELER INDUSTRY:

The Britannica encyclopedia describes a motorcycle as a bicycle or tricycle propelled by

an internal-combustion engine (or, less often, by an electric engine). The motors on mini

bikes, scooters, and mopeds, or motorized velocipedes, are usually air-cooled and range

from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder

motorcycles have displacements of more than 1,300 cubic cm.

The automobile was the reply to the 19th century dream of self-propelling the horse-

drawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle.

The first commercial design was a three-wheeler built by Edward butler in Great

Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted

between two steer able front wheels and connected by a drive chain to the rear wheel.

The 1900s saw the conversion of many bicycles, or pedal cycles by adding small,

centrally mounted spark ignition engines. There was then felt the need for reliable

constructions. This led to road trial tests and competition between manufactures. Tourist

Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races.

Such were the proving ground for many new ideas from early two-stroke-cycle designs to

supercharged, multivalent engines mounted on aerodynamic, carbon-fibre reinforced

bodywork.



1.3 INVENTION OF TWO WHEELERS:

The Invention of the first two-wheelers is a much debated issue. “Who invented the first

motorcycle?” may seem like a simple question, but the answer is quite complicated.

Two wheelers owe their descent to the “safety” bicycle that is bicycles with front and rear

wheels of the same size with a pedal crank mechanism to drive the rear wheel. Those

bicycles, in turn descended from high-wheel bicycles. The high-wheelers descended from an

early type of pushbike, without pedals, propelled by the rider’s feet pushing against the

ground. These appeared around 1800, used iron-banded wagon wheels, and were called

“bone-crushers”, both for their jarring ride, and their tendency to toss their riders.

Gottlieb Daimler (who later teamed up with Karl Benz to form the Daimler-Benz

Corporation) is credited with building the first motorcycle in 1885, one wheel in the front

and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It

was constructed mostly of wood, the wheels were of the iron-banded wooden-spoke wagon-

type, and it definitely had a “bone-crusher” chassis!

These two wheelers were powered by a single-cylinder Otto-cycle engine, and may have had

a spray-type carburettor. (Wilhelm May Bach, Daimler’s assistant, was working on his

invention of the spray carburettor at the time). If two wheels with steam propulsion can be

called a motorcycle, then the first one may have been American.

One such machine was demonstrated at fairs and circuses in the eastern US in 1867.

Sylvester Howard Roper of Roxbury, Massachusetts, built this. There is an existing example

of a Roper machine, dated 1869. A charcoal-fired two-cylinder engine, whose connecting

rods directly drive a rank on the rear wheel, powers it. This machine predates the invention

of the safety bicycle by many years, so its chassis is also based on the “bone-crusher” bike.



1.4 INTRODUCTION TO TWO-WHEELER INDUSTRY:

India is the second largest manufacturer and producer of two-wheelers

in the world. It stands next only to Japan and China in terms of the number of two-wheelers

produced and domestic sales respectively. The Indian two-wheeler industry made a small

beginning in the early 50s when Automobile Products of India (API) started manufacturing

scooters in the country. Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally,

in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of

Italy. The agreement expired in 1971. In the initial stages, API dominated the scooter

segment; Bajaj Auto later overtook it. Although various government and private enterprises

entered the fray for scooters, the only new player that has lasted till today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India. It was a

complete seller market with the waiting period for getting a scooter from Bajaj Auto being

as high as 12 years.

However, the major set of reforms was launched in the year 1991 in response to the major

macroeconomic crisis faced by the economy. The industrial policies shifted from a regime

of regulation and tight control to a more liberalized and competitive era. Two major results

of policy changes during these years in two-wheeler industry were that the, weaker players

died out giving way to the new entrants and superior products and a sizeable increase in

number of brands entered the market that compelled the firms to compete on the basis of

product attributes. Finally, the two-¬wheeler industry in the country has been able to witness

a proliferation of brands with introduction of new technology as well as increase in number

of players.



1.5 INTRODUCTION TO INDIAN TWO-WHEELER INDUSTRY:

Indian Two-Wheeler Industry: A Recent Perspective,

According to FADA (Federation of Automobile Dealers Association):

Dripto Mukhopadhyay, Associate Fellow, NCAER1

Automobile is one of the largest industries in global market. Being the leader in product and

process Technologies in the manufacturing sector, it has been recognized as one of the

drivers of economic growth. During the last decade, well-directed efforts have been made to

provide a new look to the automobile policy for realizing the sector's full potential for the

economy. Steps like abolition of licensing, removal of quantitative restrictions and

initiatives to bring the policy framework in consonance with WTO requirements have set the

industry in a progressive track. Removal of the restrictive environment has helped

restructuring, and enabled industry to absorb new technologies, aligning itself with the

global development and also to realize its potential in the country. The liberalization policies

have led to continuous increase in competition which has ultimately resulted in

modernization in line with the global standards as well as in substantial cut in prices.

Aggressive marketing by the auto finance companies have also played a significant role in

boosting automobile demand, especially from the population in the middle income group.

The Automobile Industry in general and two wheeler industry in particular has shown a

tremendous growth over the recent years. According to the Society of Indian Automobile

Manufactures (SIAM) the industry has grown by 32.69% in the year 2009/2010.Two

Wheeler segment as a whole during the year 2009/10 grew by over 30.51%. This growth has

been due to the Government's initiative on rural roads and better connectivity with major

towns and cities, improved agricultural performance, upward trend of purchasing power of

rural people.The two-wheeler industry was able to achieve the record performance of

crossing 9 million two Wheelers with exact sales standing at 9,371,231 during the year

2009-10.The northward trend of growth among the two-wheelers is set to continue in the

years ahead.

A brief input about the Domestic sales of various segment of two-wheelers with the statistics

from there leading segments are as follows.



Scooters:

Though the metal bodied geared scooters have fallen out of favor of the Indian two-wheeler

user their upward trend in growth has been due to rise in the sales of scooters and Motor

scooters. Bajaj Auto has been able to sell 383,776 units in the year 2009/2010 of two

wheelers which don't include motorcycles. They have shown a negative trend in the two

wheeler segment other than the motorcycles. This goes on to show that Bajaj Auto has lost

its supremacy in the Scooter and Moped segment as they have shifted focus to motorcycles.

HMSI currently occupies the leading position in the scooters segment with a market share of

51% (April-January 2010) and drawing on its flagship brand Activa (besides Aviator and

Dio). It is followed by TVS (Scooty Pep+ and Streak), which has a market share of 22%.

Motorcycles:

2005-06 2006-07 2007-08 2008-09 2009-10

6,210,599 7,113,021 6,500,432 6,801,127 9,371,231

Motorcycles have become the most preferred choice among all two-wheeler users. They

account for nearly 80% of the total two wheeler sales in the country. This trend is set to

continue as more and more models of this hot set of two wheelers enter the market. Hero

Honda is currently the clear market leader in this segment, enjoying a market share of close

to 70%. Hero Honda which claims to be the largest manufacturer of two-wheeler in the

world was able to sell 4.6 million motorcycles during the year 2009/2010.


2005-06 2006-07 2007-08 2008-09 2009-10

909,051 940,637 1,007,123 1,148,007 1,462,507


Mopeds :

2005-06 2006-07 2007-08 2008-09 2009-10

332,741 355,870 431,289 453,446 517,476

Mopeds, which were once the entry-level options in the two-wheeler, have been replaced by

entry level or price category bikes which provide all the comfort and advantages of a

motorcycle but at an affordable price.

Thus it has not come as a surprise that mopeds have shown a negative growth over

the recent years. TVS Company one of the pioneers of mopeds manufactures of India was

able to sell about 3.09 lakh of mopeds during 2009-10. This trend is supposed to continue in

the days to come, as the motorcycles race ahead other two-wheelers will find it difficult

keep up with the pace of their growth.

Trend in 2W Volumes by Category:

Source: SIAM, ICRA’s estimates



1.6 MANUFACTURERS IN INDIA:

The Indian two-wheeler industry is highly concentrated, with three players-Hero Honda

Motors Ltd (HHML), Bajaj Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS) -

accounting for over 80% of the industry sales as in 9MFY2005. The other key players in the

two-wheeler industry are Kinetic Motor Company Ltd (KMCL), Kinetic Engineering Ltd

(KEL), LML Ltd (LML), Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic

Auto), Royal Enfield Ltd (REL) and Honda Motorcycle & Scooter India (P) Ltd (HMSI).


http://www.indiabike.com/tbuyrev1.asp?brands=006













Technological tie-ups of Select Players:

Nature of

AllianceCompany Product

Bajaj

Auto

Technological

tie-up

Kawasaki Heavy

Industries Ltd,

Japan

Motorcyc

les

Technological

tie-up

Tokya R&D Co

Ltd, Japan

Two-

wheelers

Technological

tie-up

Kubota Corp,

Japan

Diesel

Engines

HHML Joint Venture Honda Motor Co,

Japan

Motorcyc

les

KEL Technological

tie-up

Hyosung Motors

& Machinery Inc.

Motorcyc

les

KEL Tie up for

manufacturing

and

distribution

Italjet, Italy Scooters

LML Technological

tie-up

Daelim Motor Co

Ltd

Motorcyc

les

Hero

Motors

Technological

tie-up

Aprilia of Italy Scooters



1.7 A GROWTH PERSPECTIVE:

The composition of the two-wheeler industry has witnessed sea changes in the post-reform

period. In 1991, the share of scooters was about 50 per cent of the total 2-wheeler demand in

the Indian market. Motorcycle and moped had been experiencing almost equal level of

shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased

to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to

the level of 16 and 6 per cent respectively. But in 2009-10 the trend has changed and all are

looking forward in motorcycle rather than scooters or mopeds. Now motorcycle has a 70%

market share in two wheeler industry and will further dominate in this segment as all the

buyers opt for motorcycle and the trend is going change in future as well.

Hero Honda gains market share within scooters segment:

For FY09, scooters contribution to total 2-wheeler volumes was at 15.4%. However, during

FY10 the contribution slipped to 12.3% during October 2009 before jumping to 17.4% in

February 2010.

Hero Honda’s market share in the segment increased from 13.4% in FY09 to 14.2% for

YTD FY10.

Rising proportion of <125cc motorcycles:

Proportion of <125cc vehicles to total motorcycle volumes increased from 70.2% in FY09 to

74.1% in YTD FY10. Surprisingly, Bajaj Auto lost market share in 125-250cc segment by

4.2ppts from FY09.

Increasing rural penetration:

Robust agriculture growth during the past few years along with pro-agriculture reforms has

led to increased penetration of 2-wheelers in the rural areas.



1.8 CHANGING TRENDS OF THE INDIAN’S TWO WHEELER

INDUSTRY:

Share of scooters bounce back from lows in October 2009:

Sale of scooters increased 23.1% yoy during YTD FY10 as against growth of 24.6% yoy in

total two wheeler sales during the same period. The growth for scooters was lower compared

to the total two wheelers on account of slew of launches in the motorcycle segment.

Contribution of scooters to two wheeler volumes have recovered from ~12% to 15% in Aug-

Oct 2009 to 17.4% in February 2010. However, on YTD basis the share of scooters of two

wheelers remained flat at 15.4%. The share was higher by 75bps when compared to 16.7%

in Jan ’10. Mahindra 2-wheelers (nil to 6%) were the major gainers. Honda was on the

losing side with its market share falling from 57.1% to 50.8%.

As per Crisil, over the next five years rural penetration of 2-wheelers will increase

from 22% to 26%, while urban penetration will rise from 29% to 31%.

The recent stats say all about the growth aspects in two-wheeler.

Trend in 2W Sales Volumes, Domestic and Exports:



Source: SIAM, ICRA’s estimates

1.9 TOPIC DESCRIPTION:

INTRODUCTION TO MARKETING:

In earlier days, marketers could understand consumers through the daily experience of

selling to them. But the growth in the size of the companies and markets has removed many

marketing managers from direct contact with the customers. The role of organization in



developing the marketing activity cannot be ignored. Several instructions are involved in

discharging marketing functions. They may be small or big, but they are on their toes to

satisfy human wants.

Consumer markets and consumer buying behaviour have to be understood before sound-

marketing plans can be developed. The consumer market buys goods and a service for

personal consumption. It is the market for which economic activities are organized. Before

planning it’s marketing, accompany needs to identify its target consumers and their decision

process. Although many buying decisions involve several participants who play such as

initiator, influences decider, buyer and user.

DEFINITION’S:

“Marketing is a societal process by which individuals and groups obtain what they

needs and what through creating, offering and freely exchanging products and services of

value with others”.

“Marketing is phenomenon brought about by the pressure of mass production

and increase spending powers”.

“Marketing activities are concerned with demand stimulating and demand fulfilling

efforts of the enterprises.”

CONSUMER BUYING BEHAVIOUR :

What products and services do we buy?

Why do we buy?

How often do we buy?

From where do we buy etc.?

DEFINITION:



“Consumer behaviour is all physiological, social and physical behaviour of potential

customers as they become aware of, evaluates, purchase, consume and tell others about the

product and services”

“Consumer behaviour is a process where by individual decides whether, what, when, where

and how and from whom to purchase goods and services”

–Sir Walter C.G and Paul G.W

“Consumer behaviour is the behaviour that the consumer displays in searching for,

purchasing, using, evaluating and disposing of products and services that they expect will

satisfy their needs” -Sir Leon Schiff man

IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS:

1. Consumer behaviour is helpful in understanding the purchase behaviour and

preferences of different consumers. As consumers we differ in terms of our sex, age,

education, income, occupation, family set-up, religion, nationality, social status.

2. To successfully market to different market segments, the marketer needs appropriate

marketing strategies which we can design only when he understands the factors

which account for these differences in consumer behaviour and tastes.

3. In today’s world of rapidly changing technology, consumer tastes are also

characterized by fast changes. Consumer behaviour provides invaluable clues and

guidelines for marketers on new technological frontiers which they should explore.

For example- CTV in lieu of B/W TV.

A SIMPLE MODEL OF CONSUMER BEHAVIOUR:

I

N

P

U

External Influences

Marketing Stimuli Other Stimuli

Product - Economic

Price -Technological

Promotion -Political



T Channel of distribution -Social

PROCESS

Consumer Decision Making

Buyer Characteristics Buyer Decision

Psychological

Personal & -Process

Cultural characteristics

O

U

T

P

U

T

Consumer Decisions & Actions

Product choice

Brand choice

Dealer choice

Purchase timing

Purchase amount

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER

BEHAVIOUR:



1. Psychological Stage:

Motivation:

When a need is sufficiently pressing, it directs the person to seek its satisfaction,

it is known as motive.

MASLOW’S HIERARCHY OF NEED:

PERCEPTION:

It can be described as “how we see the world around us”

The different sights, sounds, smells, tastes & sensations that we feel are known as

stimuli. Each person recognizes, selects, organizes & interprets these stimuli in his own

individual manner based on his needs, values & expectations and this is known as

perception. Therefore each individual perception is unique.

LEARNING:

New Born- instinctive behavior



Adult- learned behavior.

A. Formal learning: In which parents and elders teach children the proper way to

behave.

B. Informal Learning: In which we learn by imitating the behaviour of our parents,

friends, film actors/ artists in action.

C. Learning: In which instructions are given about the specific method by which certain

things have to be done such as printing, dancing, singing etc.

BELIEFS AND ATTITUDES:

A belief is a ‘descriptive’ thought that a person has about something. The belief that the

customer has about a brand is important. Therefore it determine his behaviour towards

buying and using the belief constitute the brand image and if the customer has the wrong

belief he is likely to generate negative image about the brand.

2. PERSONAL FACTORS:

Age & Life cycle Stage:

Age influences and buyers decision the need for different products and services

changes with age.

Babies and children need product like milk powder, baby foods and toys.

Young adult’s need- clothes, recreational and educational facilities, transportation

and a host of other age and fashion related products.

Consumption behaviour is also influenced by the specific stage of the family life

cycle.

EDUCATION AND OCCUPATION:

Education widens a person’s horizons, refines his tastes and makes his outlook more

cosmopolitan.



Occupation also shapes the consumption needs people following specialized occupations

such as- photography, music, carpentry etc. need special tools and equipment.

INCOME:

The income which a person earns is an extremely important influence on his consumption

behaviour. He may aspire to buy certain goods and services but his income may become a

constraint. Person’s attitude towards spending vs. saving and his borrowing power are also

important.

PERSONALITY:

Personality is sum total of an individual’s psychological traits, characteristics, motives,

habits, attitudes, beliefs and outlooks. Personality is the very essence of individual

differences in consumer behaviour.

LIFESTYLE:

Lifestyles are defined as patterns in which people live; as expressed by the manner in which

they spend money and time on various activities and interests. Lifestyle is a function of our

motivations learning, attitudes, beliefs and opinion, social class, demographic factors,

personality etc.

3. SOCIAL FACTORS:

Reference Groups:

The consumer’s decision to purchase and use certain products and services is

influenced not only by psychological factors, his personality and life style, but also by the

people around him with whom he interacts and various social groups he belongs to.

A group is defined as two or more people who interact to achieve individual or common

goals.

Family:

Two families shape an individual’s consumption behavior. Within the family,

different members play different roles; marketers want to find out exactly the role

played by individual member.



Roles & Statuses:

An individual may participate in many groups has position within each group can be

defined in terms of activities he is expected to perform.

4. CULTURAL FACTORS:

Culture:

The study of culture encompasses all aspects of a society such as its religion, knowledge,

language, laws, customs, traditions, music, art, technology, work patterns, products etc. All

these factors makeup unique distinctive personality of each society.

The kinds of products and advertising appeals that can work effectively in a society depend

largely on its cultural background.

Sub Culture:

A sub culture is an identifiable distinct, cultural group which while following the dominant

cultural values of the overall society also has its own beliefs, values and customs that set

them apart from other members of the same society.

Social Class:

Social classes can be defined as relatively permanent and homogeneous divisions in a

society which individuals or families sharing same values, life styles, interests and

behaviour can be categorized.

STAGES IN THE BUYER DECISION PROCESS:

In making a purchase decision the consumer goes through the five stages of buying process,

and they are as follows:

1. Problem recognition



2. Pre-purchase information search

3. Evaluation of alternatives

4. Purchase decision

5. Post purchase behaviour

6. Disinvestment

However, in case of routine purchases, the consumer may skip the second & third stages

and straight away go the stage of purchase decision.

1. Problem recognition : the buying process starts with the buyer recognizing a need or

a problem

2. Pre-purchase information search: External & Internal.

Internal- refers to recalling relevant information stored in the memory. External-

refers to deliberate and voluntary seeking of information, recognized the

product/brand under consideration which can be known.

3. Evaluation of alternatives:

The stage of the buying decision process gives the marketer a chance to modify his

product offering in keeping with the relative importance attached to each attribute by

various consumer segments, altering beliefs and attitudes about his own brand and

calling attention to neglected product attributes.

4. Purchase decision:

Consumer end up buying a brand which is not his most preferred because of

Shopkeeper’s influence

Preferred brand not available



Attractive incentive on other brand

5. Post Purchase behaviour:

After purchasing the product if consumer finds that its performance/utility matches

up to his expectation, satisfaction occurs. Customer may also strongly recommend the

brand to others. However if the product is not up to his expectation, then

dissatisfaction results. The customer may decide to stop buying other products of the

company and inform people known to him/her about the poor quality performance of

the product.

6. Disinvestment:

After using the product for certain years the consumer might need sum returns from

that particular product. The value which he gets from the product by selling is called

as disinvestment. It might be in monetary kind or so.

1.10 FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR TOWARDS

TWO-WHEELERS:

1. PRICE CONSIOUSNESS :



Price is still the overriding factor in the purchasing decision. This explains why the price

hike of Hero Honda has precluded its dominant emergence to the top despite its clear

technical superiority.

2. FUEL EFFICIENCY :

Petrol prices being raised to sky, fuel efficiency has become an important parameter in

the choice of the decision of the buyer. Middle class people usually see the fuel

efficiency in purchase of a bike. High-class people won’t mind that much about factor.

3. FASHION :

The inclination towards trendy vehicles with the speed and good looks has become

noticeable. Especially in bikes class of vehicles, stylized instrumentation has become an

important choice in the two-wheeler market.

4. RESALE VALUE :

The resale value of an old two wheeler vehicles has traditionally be an important factor

in determining consumer’s choice. That is one reason why Bajaj and Hero Honda

command handsome resale Value.

5. ROAD GRIP :

In recent times road grip has also emerged as an important variable affecting the decision

process. Young people always look for a road grip bikes. That is one of the reasons why

Hero Honda’s New Splendor hit in the market.

6. PRESTIGE :

It also influences the consumer buying decision. Usually Rich people look for a costliest

or a stylish vehicle. They always go for a high product. They like to acquire unique

vehicle just to maintain their prestige.

7. BRAND NAME :

This also plays a major role in consumer buying decision. Old and middle age

people usually prefer to go Hero Honda or Bajaj and young prefer Honda because of

their brand name, which has created good image in consumer’s mind by giving stylish

motorcycle and scooters.

2.1 TITLE OF THE STUDY:

“A Study on Buying Behaviour of Consumers towards Hero Honda Bikes, Bangalore”



2.2 STATEMENT OF THE PROBLEM:

The present decade is an age of competition where the buyer has variety of goods to

choose from any product. These products, which do not fulfil the needs and satisfy the wants

of consumer’s losses its prime Reason for existence? Thus each manufacture tries to steal

the limelight by formulating an original and novel method of marketing to promote their

product and capture a greater chunk of the market.

The consumer market consists of all the individuals and Household who buys or

acquires goods and services for personal Consumption. Consumer’s range tremendously in

age, income, education, Patterns and tastes etc.

Consumer does generally have some notion in their mind about the product before

buying it. This may be of price, quality, durability Status and services etc., after well

consider purchase decisions of the product which are well Decided the products perceived

performance could be of expected level of consumer which influences the market in

capturing market Share of the product for the manufacturer. It has become very difficult to

find our consumer preferences towards bikes. Hero Honda also facing the same situation, it

has introduced a verity of product line with different features with slight price variations

then too Hero Honda is considered to be no.1 two Wheeler Company in India. What has

made to be no.1 is the statement of the problem.

2.3 OBJECTIVES OF THE STUDY:

To know the consumers buying behaviour towards purchase of Hero Honda bikes.

To know the customer expectations regarding that particular bike’s.

To find out the respondent’s/consumer opinion’s about Hero Honda.

To know the factors those are influencing consumers to buy Hero Honda bikes.

To find out the effect on media, advertisements on consumers of Hero Honda bike’s.

To find out whether the consumers recommend Hero Honda to others.

To give appropriate suggestions to company and enhance their performance.

2.4 SCOPE OF THE STUDY:



This study is aimed at providing HERO HONDA at MAJESTIC MOBIKES PVT LTD.

( Authorized dealer of Hero Honda) with an insight on the buying behaviour of consumers

and its patterns regarding Hero Honda bikes as well as the customer’s response and

awareness towards the brand, products, services and other aspects of Hero Honda

The data has been analysed and presented in a simple and precise way on the basis of which

pertinent recommendations have been made to the company to better the services, policies

and strategies of the company in India. Companies also want the Suggestion for

improvement from consumers of Hero Honda & get Feedback from customer.

2.5 LIMITATIONS OF THE STUDY:

Findings are based on responses provided by customer.

Limited interaction time with buyers, and hence in-depth study was difficult.

During survey some respondents may not give answer in a proper manner.

The size of the sample being relatively small, some of the findings may slightly vary

with those of the larger universe.

The study would be confined to the bike users in Bangalore city only.

2.6 TYPE OF RESEARCH:

The research type can be classified in to three broad categories:

(A) Exploratory

(B) Descriptive

(C) Casual

Exploratory research is focus on the discovery of ideas. Exploratory research is carried out

to define problems and developed hypothesis to test later. An exploratory study is generally

based on the secondary data that are reading available. It does not have to change his focus

of direction, depending on the availability of new ideas and relationship among variables.

Descriptive studies are undertaken in many circumstances. Descriptive studies can be

complex, determining a high degree of scientific skill on the part of the researcher.

Casual research helps in determined cause and effect relationship. Between two or more

variables.



The present study seeks to find out the consumers attitude towards buying of bike. The study

also aims at findings out the drawbacks of the marketing set up of Hero Honda Pvt. Ltd. so

this makes the study a descriptive one.

2.7 METHODOLOGY OF THE STUDY:

A. SOURCES OF DATA:

The Sources of data collection methods are as follows.

a) Primary data :-

The primary data is that which details we collect first time from the market and also used

first time in the research. We also say that the information is first time in the research

decision. To collect the primary data questionnaire is prepared structure non-disguise

questionnaire is prepared.

b) Secondary data :-

Secondary data are those data which are already collected by someone for some purpose

and are available for the present study; secondary data are already collected by the

company’s records and other library’s books. When the secondary data are sufficient, the

researcher has to be satisfied with the primary sources of data. Secondary data can be

used as bases for comparison with primary data have been collected by questionnaire.

B. SAMPLING PLAN:



Sampling is a process of obtaining. The information about the entire population by

examine a part of it .The effectiveness of the research

depends on the sample size selected for the survey purpose.

A. Sample Site:

The survey was conducted in Bangalore city only.

B. Sampling Unit:

It means “Who is to be surveyed”. Here target population is decided and it is who

are interested to purchase “Bike” and sampling frame is developed so that everyone in the

target population has known chance of being sampled. So the survey is conducted

particularly in Bangalore City.

C. Sample size:

For the purpose of proper survey, there is need of perfect research instruments to find

out sample size for more accurate result about buying behaviour of bike. The sample size is

100 respondents.

2.8 RESEARCH INSTRUMENTS:

Researcher instruments is the tool by which the researcher can do research on specific

problems or objective. The most popular researcher instrument for collection data is

“Questionnaire” for a particular investigation. It is simple for a moiled set of questions

presented to respondents for their answers. Due to this flexibility, it is most common

instrument used to collect the primary data. During the pre-testing of questionnaire, I

seen the reaction of respondents and suggestions required to make change in research

instrument.

3.1 BACKGROUND OF HERO HONDA:



Hero group was started by the four Munjal brothers, namely: Mr Satyanand Munjal, Mr Om

Prakash Munjal. Late Mr Dayanand Munjal and Late Mr Raman Kant Munjal.

Hailing from a small town called Kamalia, now in Pakistan in the year 1944 by establishing

bicycle spare parts business in Amritsar. After independence and partition of India, they

moved to Ludhiana and started a bicycle unit called Hero Cycles in 1956. By 1975, Hero

cycles became the largest bicycle manufacturer in India. In 1984, Hero group joined Honda

Motors of Japan to create Hero Honda Motors Limited which soon became one of the

market leaders in motor-cycle sales in India. In 1986 Hero Cycles Limited entered the

Guinness Books of World Records as the largest bicycle manufacturer in the world. By the

year 2004, Hero Honda became the world' largest manufacturer of two-wheelers with over

48% market share in India. In year 2006, Hero Honda entered the scooter production with

launch of its new model - Pleasure.

After joint venture between the Hero Group and Honda Motor Company in 1984 as

the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both

own 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for their

fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it -

Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company

grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for

almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities

based at Dharuhera and Gurgaon in Haryana.

These plants together are capable of churning out 3.9 million bikes per year. A third state-of-

the-art manufacturing facility at Haridwar in Uttranchal will soon be commissioned to cope

with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3,000 customer touch

points. These comprise a mix of dealerships, service and spare points, spare parts stockists

and authorized representatives of dealers across different areas.



Hero Honda values its relationship with customers. Its unique CRM initiative, Hero Honda

Passport Program, one of the largest programs of this kind in the world, has over 3 million

members on its roster. The program has not only helped Hero Honda understand its

customers and deliver value at different price points, but has also created a loyal community

of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero

Honda is constantly working towards consolidating its position in the market place. This

would provide the growth ballast that would sustain Hero Honda in the Years to come. As

Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We

pioneered India's motorcycle industry, and it's our responsibility now to take the industry to

the next level. We'll do all it takes to reach there.''

HERO HONDA’S MISSION:

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA’S VISION:

The Hero Honda story began with a simple vision – the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s

commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest

way to turn that dream into a reality is by remaining focused on that vision.

HERO HONDA’S MANDATE:

Hero Honda is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting edge



technology from Honda Motor Company, Japan. The teamwork and commitment are

manifested in the highest level of customer satisfaction, and this goes a long way towards

reinforcing its leadership status.

3.2 BOARD OF DIRECTORS:


No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent Director

11 Mr. Analjit Singh Non-executive & Independent Director

12 Dr. Pritam Singh Non-executive & Independent Director

13 Ms. Shobhana Bhartia Non-executive & Independent Director

14. Mr. M. Damodaran Non-executive & Independent Director

15. Mr. Ravi Nath Non-executive & Independent Director

16. Dr. Anand C. Burman Non-executive & Independent Director

http://www.herohonda.com/co_board_directors.htm#16

















3.3 ORGANIZATIONAL STRUCTURE OF MAJESTIC MOBIKES:



3.4 BUSINESS OPERATIONS:

STAKEHOLDER TIES AT THE GRASSROOTS:


Office assistant


Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones

developed at the grassroots. The Company believes it has managed to bring an economically

and socially backward region in Dharuhera, Haryana, into the national economic

mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the

Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and

education facilities for both adults and children-now nurtures a vibrant, educated and

healthy community.The Foundation has adopted various villages located within vicinity of

the Hero Honda factory at Dharuhera for integrated rural development. This includes:

Installation of deep bore hand pumps to provide clean drinking water.

Constructing metalled roads and connecting these villages to the National Highway

(NH -8).

Renovating primary school buildings and providing hygienic water and toilet

facilities.

Ensuring a proper drainage system at each of these villages to prevent water-logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidy on

biogas plants.

Raman Munjal Vidya Mandir:

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55

students from nearby areas. It has now grown into a modern Senior Secondary, CBSE

affiliated co-educational school with over 1200 students and 61 teachers. The school has a

spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an

activity room, a well-stocked library and a computer center.

Raman Munjal Memorial Hospital:

Multi-specialty hospital equipped with the latest diagnostic and surgical technology.

The Raman Munjal Memorial Hospital provides healthcare to the rural population in and

around Dharuhera, and also caters to accident and trauma victims driving along the Delhi-

Jaipur highway.



RURAL HEALTH CARE:

Besides setting up a modern hospital, the Foundation also regularly provides doorstep

health care services to the local community. Free health care and medical camps are now a

regular feature in the Hero Group's community outreach program.



3.5 PRODUCT PROFILE:

SPLENDOR:


ONE OF THE BEST

SELLERS IN THE

INDIAN MARKET.

EVERY 30 SECONDS A

SPLENDOR BIKE IS

SOLD IN INDIA.

THE MODELS UNDER

SPLENDOR ARE:

SUPER SPLENDOR

SPLENDOR PLUS

SPLENDOR NXG

SPLENDOR PRO


PASSION:


AFTER SPLENDOR,

PASSION IS NEXT

LEADING SALES IN

INDIAN MARKET.

PASSION SALES ARE

MORE IN NORTH

INDIA THAN THE

SOUTH. MOST

PREFERRED BY

MIDDLE CLASS

PEOPLE.

THE MODELS

UNDER PASSION

ARE:

PASSION

PASSION PLUS

PASSION PRO




GLAMOUR:




GLAMOUR:

Glamour came into

market few years back

and is going on well in

its segment. But could

not make as effective

as splendor or passion

made. The models

under Glamour are:

Glamour

Glamour F1


CBZ-XTREME:



KARIZMA:

KARIZMA:


CBZ-XTREME:

It was introduced in the year

2008, already the Indian two

wheeler markets had achieved the

maximum growth and this made

the product slightly imbalanced in

sales.



Karizma was introduced

in India Market in the

year 2003; it had held the

pole position in sport

segment.

It was mostly preferred by

youngsters and was later

hauled by Bajaj and

Honda respectively.

The Models under

Karizma are:

Karizma

Karizma ZMR


3.6 KEY MILESTONES OF HERO HONDA:

Year Event

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

Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of

founder Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-

14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of

founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by



DNV Holland

Splendor declared 'World No. 1' - largest selling single two-wheeler model

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan

Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales

mark.

Splendor has emerged as the World's largest selling model for the third

calendar year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced.

2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced.

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced




15 million production milestone achieved


New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched


2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched


CD Deluxe lauched with power start feature

New 'Glamour' launched.

New 'Glamour Fi' launched.

2009 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched.

Splendor completed 11 million production landmark.

New motorcycle model 'Karizma - ZMR' launched.

Silver jubilee celebrations.



3.7 PROMINENT AWARDS TO THE COMPANY:

Y

ea

r

Awards & Recognitions:

20

10

Company of the Year awarded by Economic

Times Awards for Corporate Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of

Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of the

Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car &

Bike of the Year Awards 2009

20

09

'Two-wheeler Manufacturer of the Year' by NDTV

Profit Car & Bike Awards 2009 and Passion Pro

adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile -

Two-wheelers' sector bythe Dun & Bradstreet-

Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand

2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 -

two-wheeler category

20 NDTV Profit Business Leadership Award 2008 -



08 Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award

2008"

TopGear Design Awards 2008 - Hunk Bike of the Year Award

NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice

Award” to Hunk in Bike category

IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty

Awards - “Customer and Brand Loyalty Award” in Automobile (two-wheeler)

sector

Asian Retail Congress Award for Retail Excellence (Strategies and Solutions

of business innovation and transformation) - Best Customer Loyalty Program

in Automobile category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following

category:

Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

"Bike Technology of the Year" - Glamour PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine

“Most Trusted Company”, by TNS Voice of the Customer Awards 2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the



Customer Awards 2006.

2006 Adjudged 7th Top Indian Company by Wall street Journal Asia (Top Indian

Two Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of world’s most

reputed companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction

Awards 2006:

Splendor Plus (Executive)

CD Deluxe (Entry)

Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand

Equity Survey 2006.

Adjudged 7th Top Indian Company by Wall street Journal Asia (Top Indian

Two Wheeler Company).

Top Indian company in the Automobile - Two Wheeler sector by Dun &

Bradstreet - American Express Corporate Awards 2006.

Hero Honda Splendor rated as India's most preferred two-wheeler brand at

the Awaaz Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance during

2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by

Engineering Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following

category:

Bike Maker of the Year



Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)

Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike category

2005 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by

CNBC in the 'Automobiles' category.

Bike Maker of the Year Award by Overdrive Magazine.

ICWAI National Award for Excellence (Second) in Cost Management 2004 in

the private sector category by ICWAI.

10th Motilal Oswal Wealth Creator Award for as the most consistent wealth

creator for the period 1991-2005.

2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank

amongst the top 10 Indian companies).

GVC Level 1 (Highest Rating) by CRISIL for corporate Governance.

Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The

Outlook Money.

Corporate Excellence Award 2004 by Indian Institute of Materials

Management.

Adjudged as the Organization with Innovative HR Practices by HT Power Jobs

for HR Excellence.

ICSI National Award for Excellence in Corporate Governance 2004 by The

Institute of Company Secretaries of India.

2003 Winner of the Review 200 - Asia’s Leading Companies Award (3rd Rank


Most Respected Company in Automobile Sector by Business World.



Bike Maker of the Year by Overdrive Magazine.

2002 Bike Maker of the Year by Overdrive Magazine.

Winner of the Review 200 - Asia’s Leading Companies Award (4th Rank


Company of the Year of ET Awards for Corporate Excellence.

Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best

Financial Management' and 'Best Operational Efficiency' category, ranked 6th

in 'Overall Best Investor Relations' category, by Asia money.

Highest Wealth Creating Company of the Year Award by the Money.

GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.

2001 Bike Maker of the Year by Overdrive Magazine.

Winner of the Review 200 - Asia’s Leading Companies Award (9th Rank

amongst the top 10 Indian Companies).

Winner of Three Leaves Award for showing Corporate Environment

Responsibility in the Automobile Sector by Centre for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category

of Automobile & Tractor presented by Vice President of India.

1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being

ranked 9th amongst the most investor rewarding companies in India.

1995 National Award for outstanding contribution to the Development of Indian

Small Scale Industry (NSIC Award - Presented by President of India).

1991 Economic Times-Harvard Business School Award for Corporate Performance

to Hero Honda Motors Ltd.



3.8 GROWTH OF HERO HONDA:

SALES PERFORMANCE:

HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50 % NET

PROFIT IN Q2, '08-09

DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES & OTHER

OPERATING INCOME), AT RS. 3202 CRORE; EBIDTA AT 13.58 PER CENT

Aug'06 Aug'07 FY 06-07 FY 07-08

Total

Sales2,15,076 2,40,875 12,82,860 12,63,254

Highlights of Q2, FY'08-09:

• Total turnover(Net sales & Other Operating income)Rs. 3202 Crores, growth of 35.6

per cent

• Net profit after tax at Rs 306.30 crores, growth of 50 per cent

• EBIDTA margin for the quarter 13.58 per cent

• Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent

• Total sales for H1 stands at 18,66,349, growth of 19.7 per cent

• Over 55 per cent share in domestic motorcycle market

• Launches first-of-its kind music video to celebrate 25 years of Hero Honda.

New Delhi, October 21, 2008: Hero Honda Motors Ltd (HHML), the world's largest two-

wheeler company for seven consecutive years, today firmly reiterated its undisputed

leadership in the domestic two-wheeler market with impressive bottom line growth for the

second quarter (Q2) – July to September - of this financial year (FY) 2008-09.

Even as the industry continued to face tough market conditions on account of uncertainty

over interest rates and overall credit squeeze, the company reported 50 per cent growth in

profit after tax (PAT) at Rs 306.30 crore for the second quarter. Hero Honda's profit after



tax in the corresponding period last fiscal (July - Sept, 2007-08) stood at Rs 204.33 crore.

Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of

35.6 per cent over Rs 2361 crore recorded in the corresponding period last fiscal. The

company has recorded an EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA

margin in the previous quarter (April - June '08) was 12.20 per cent.

The strong financial performance is in line with the company's better-than-industry top line

growth. After posting a growth 11.38 per cent in the first quarter, the company kicked off

the second quarter with a 39.8 per cent growth in sales in the month of July, and followed

up with 26.8 per cent growth in August and 22.4 per cent in September. Hero Honda

consistently keeps growing its share in the domestic motorcycle market, and currently

enjoys over 55 per cent share.

Hero Honda's cumulative sales for the second quarter (Q2) this FY stands at 9,072,095

units - a growth of 28.5 per cent over Q2 last FY (2007-08). The cumulative sales for the

first six months (H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486

units sold in H1 in the last FY – reflecting a consistent 19.7 per cent growth in cumulative

sales.

2009-10 Performance:

Total unit sales of 46,000,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent.



3.9 FUTURE PROSPECTS OF HERO HONDA:

TERMINATION OF HERO AND HONDA JOINT VENTURE:

In December 2010, the Board of Directors of the Hero Honda Group have decided to

terminate the joint venture between Hero Group of India and Honda of Japan in a phased

manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero

Honda. Under the joint venture Hero Group could not sell into international markets and the

termination would mean that Hero Group can exploit global opportunities now. Since last 25

years the Hero Group relied on their Japanese partner Honda for R & D for new bike

models. So there are concerns that the Hero Group might not be able to sustain the

performance of the Joint Venture alone.

3.10 PROFILE OF THE DEALER:

“Majestic Mobikes Pvt ltd.”

‘Authorised dealer of Hero Honda’

Majestic Mobikes was established in the year 1985. From then, it is committed to

excellence in serving all there esteemed customers. The sales team is made up of dedicated

showroom and field executives who are professionally trained by Hero Honda Motors. They

are guiding the customers through the entire sales process right from assisting in the choice

of model, Colour and factors to handing a helping hand in providing attractive buyback

options and also arranging finance at competitive rates. The service centre is armed with the

stock-of-the art equipment and is in line with world-class standards. The service team is

technically qualified and trained to analyse and provide solutions adhering to Hero Honda

care guidelines order to satisfy even the most demanding customers.

The Majestic Mobikes dealership maintains a high standard of excellence in sales and

services by sending its personnel for training and a regular basis to Hero Honda, to update

them with the latest technological advances in the automatic world.



Mission & Vision of Majestic Mobikes:

Mission:

To Make More sales,

To increase more service centres to provide highest Quality service.

Vision:

To achieve customer delight.

SERVICE:

The product owners of Hero Honda can service their scooters at their services counters,

which are a state-of-the art facility. It incorporates the latest equipment and technology and

is manned by trained technicians. These qualified, talented professionals lay emphasis a

quality of workmanship and can attend to 40-50 bikes at any given day.

ADDRESS:

Dealer Name : Majestic Mobikes Pvt Ltd.

Managing

Director

: Sir H.Parameswara

Mobile : +919611330820

Address : No.125, Majestic Plaza, Near

Lalbagh West Gate, R V

Road, Basavanagudi, Bangalore

– 560004

Phone : 080-42512525

E-mail Id : [email protected]

n



SALES TURNOVER:

Sales turn of all Hero Honda bikes in Majestic Mobikes is more than 11,500 vehicles

per year.

Departments of Majestic Mobikes:

1) Finance Department:

Financial management is many ways an integral part of the jobs of managers who are

involved in planning, allocation of resources and control. The responsibilities for the

financial management are dispersed throughout the organization.

The key activities of financial management are:

a) Looking at the accounts of the show room.

b) Forecasting and planning the financial future of the Show room.

2) Marketing Department :

Marketing is an organizational function and a set of the processes for creating,

communicating and delivering value to customers and for managing customer relationship in

ways that benefit the organization and its stake holders and making more sales. In marketing

department many other sub departments are related they are:

Service Department

Sales Department

Spare Part’s Department

Promotion Department

3) Human Resources Department :

Human resources management means employing people, developing their skills &

resources, utilizing, maintaining & compensating their services in tune with the job and the

organizational requirements with the view to contribute to the goals of the organization,

individual & the society. Human resources are the total knowledge, skills, creative abilities,

talents & aptitude of an organization. Of all the M’s in the management like material,



machine, money, manpower, etc. Man is the most valuable assets and organization. Total

Number of Workers & Staffs working in Majestic Mobikes is 83 Members.

TABLE-1:

Table showing Age of the Respondents:

ANALYSIS:

From the above table it is clear that, in between 18-20 years are 8%, 21-25 years are 42%,

26-30 years are 24%, 31-40 years are 20% and 41-50 years are 6%.

INFERENCE:

It is revealed that most of the respondents belong from 21-25 years i.e. 42% and 26-30 years

24%. This shows that Hero Honda is mainly used by young generations. The company

should more emphasize on youths of the country.


Age (in years) No. of respondents Percentage (%)

18-20 08 8%

21-25 42 42%

26-30 24 24%

31-40 20 20%

41-50 06 06%

TOTAL 100 100


GRAPH-1:

Graph Showing Age of the Respondents:

18-20 21-25 26-30 31-40 41-50

8

42

2420

6

AGE

AGE



TABLE-2:

Table showing the occupation of the respondents:

ANALYSIS:

From the above table it is clear that Businessman’s are 20%, Students are 38%, Professions

are 18% and remaining 24% are others.

INFERENCE:

It is revealed that majority of the respondents are students and average is from the others &

own business. Hero group must target Professionals more in order to enhance their overall

sales.


OCCUPATION NO. OF

RESPONDENTS

PERCENTAGE (%)

BUSINESSMAN 20 20%

STUDENT 38 38%

PROFESSION 18 18%

OTHERS 24 24%

TOTAL 100 100


GRAPH-2:

Graph showing occupation wise classification:

Businessman20%

Student38%

Profession18%

Others24%

Occupation



TABLE-3:

Table showing weather Respondents have/had Bike:

MOTOR BIKE NO. OF RESPONDENTS PERCENTAGE (%)

YES 64 64%

NO 36 36%

TOTAL 100 100

ANALYSIS:

From the above table we can infer that 64% respondents had bike before purchase of Hero

Honda Bike. The remaining 36% respondents were new customers to Hero Honda.

INFERENCE:

It is revealed that majority of the respondents were having bike before purchase of Hero

Honda Bike. This inference shows why Hero Honda is holding 70% market share in two-

wheeler segment.



GRAPH-3:

Graph showing weather Respondents have bike or not:

64%

36%

Bike

YES

NO



TABLE-4:

Table showing the company which respondents had before purchase of Hero Honda

bike:

PRESENT COMPANY

BIKE

No. OF RESPONDENTS PERCENTAGE (%)

HONDA 26 40.625%

BAJAJ 20 31.25%

YAMAHA 4 6.25%

TVS 14 21.875%

TOTAL 64 100

ANALYSIS:

From the above table, it reveals that 26 respondents had Honda, 20 respondents had Bajaj, 9

respondents had Yamaha and remaining 12 respondents had TVS motors before purchasing

Hero Honda.

INFERENCE:

It reveals that majority of the respondents are from Honda and Bajaj. The respondents are

not satisfied with their present company and so they have opted Hero Honda. This

INFERENCE shows Hero Honda is better brand compared to others.



GRAPH-4:

Graph showing the company which respondents had before purchase of Hero Honda

bike:

HONDA41%

BAJAJ31%

YAMAHA6%

TVS22%

COMPANY HAVE/HAD BEFORE



TABLE-5:

Table showing the model opted by respondents at Hero Honda:

BIKE OPTING NOW No. OF RESPONDENTS PERCENTAGE (%)

SPLENDOR 28 28%

PASSION 10 10%

KARIZMA 30 30%

CBZ - XTREAM 14 14%

GLAMOUR 18 18%

TOTAL 100 100

ANALYSIS:

From the above table it reveals that 28% opt for splendor, 10% opt for passion, 30% opt for

Karisma, 14% opt for CBZ-Xtreme and remaining 18% opt for glamour.

INFERENCE:

It reveals that majority are opting for Karizma, followed by splendor. But the organization

should shift the focus on Passion, CBZ-Xtreme and glamour to make more sales in this

segment also.



GRAPH-5:

Graph showing the model opted by respondents at Hero Honda:

28%

10%

30%

14%

18%

BIKE OPTING NOW

SPLENDOR PASSION KARISMACBZ-XTREAM GLAMOUR

TABLE 6:



Table showing the specialty of Hero Honda models, which cannot be found in any

other models:

SPECIALTY ASPECTS

OF HERO HONDA


GREAT LOOKS 40 40%

SUPERB MILEAGE 48 48%

UNIQUE FEATURES 06 06%

ECONOMICAL PRICE 06 06%

TOTAL 100 100

ANALYSIS:

From the above table we can know that, 40% respondents feel it has great looks, 48%

respondents feel it has superb mileage, 6% respondents feel it has economical price and

remaining 6% feel it has unique features.

INFERENCE:

It reveals that most of them feel superb mileage and great looks, but hero Honda has to

concentrate on economic aspects of the bike and increase its features this in return will boost

the overall sales of the Hero Honda in future.



GRAPH-6:

Graph showing the specialty of Hero Honda models, which cannot be found in any

other model:

GREAT LOOKS40%

SUPERB MILEAGE

48%

UNIQUE FEATURES

6%

ECONOMICAL PRICE6%

SPECIALTY OF HERO HONDA



TABLE-7:

Table showing about the respondent’s preference towards Hero Honda:

ATTIRIBUTES No. OF RESPONDENTS PERCENTAGE (%)

SUPERIOR MILEAGE 26 26%

BETTER TECHNOLOGY 10 10%

TRUSTED BRAND 52 52%

NEW MODELS/DESIGNS 12 12%

TOTAL 100 100

ANALYSIS:

From the above table we can infer than 26% prefer superior mileage, 10% feel better

technology, 52% feel Trusted brand and remaining 12% feel New models/designs.

INFERENCE:

It reveals that majority feels Hero Honda is trusted brand compared to others brands and so

they are opting bike in Hero Honda. This shows positive sign for hero Honda but will have

to maintain the same in the future too.



GRAPH-7:

Graph showing about the respondent’s preference towards Hero Honda:

SUPE-RIOR

MILEAGE

26%

BET-TER

TECHNOL-OGY10%

TRUSTED BRAND52%

NEW MODELS/DESIGNS12%

SUPERIOR MILEAGEBETTER TECH-NOLOGYTRUSTED BRAND



TABLE-8:

Table showing the attributes considered while purchasing Splendor Bike’s:

ANALYSIS:

From the above table we come to know that out of 28 respondents, 06 respondents feel

maintenance cost is high, 18 respondents feel its economical and remaining 4 respondents

feel its nominal. 4 respondents feel the price of the bike is high, 24 respondents feel it’s

economical.

INFERENCE:

From the graph it reveals that majority i.e. 64% feels the maintenance cost is economical

and can be managed and regarding the price of the bike also the respondents feel it’s

economical. Thus we come to know that splendor is the most preferred brand in India.


ATTRIBUTES VERY

HIGH

HIGH ECONOMICAL NOMINAL TOTAL

MAINTENANCE

COST

- 06 18 04 28

PRICE - 04 24 - 28


GRAPH-8:

Graph showing the attributes considered while purchasing Splendor Bike:

MAINTENANCE COST

PRICE

0

0

6

4

18

24

4

0

SPLENDOR

VERY HIGH HIGH ECONOMICAL NOMINAL



TABLE-9:

Table showing the attributes considered while purchasing Passion Bike’s:

ATTRIBUTES VERY

HIGH

HIGH ECONOMOCAL NOMINAL TOTAL

MAINTENANCE

COST

02 - 06 02 10

PRICE - 02 08 02 10

ANALYSIS:

From the above table we come to know that out of 10 respondents, 2 respondents feel the

maintenance cost is very high, 6 respondents feel its economical and remaining 2

respondents feel its nominal. Out of 10 respondents, 2 respondents feel the price of the bike

is high, 8 respondents feel its economical and remaining 2 respondents feel it’s nominal.

INFERENCE:

It reveals that majority of the respondents feel the maintenance cost of the passion is

economical and the price of the model is also economical. Thus we come to know that

passion is an economical bike which can be affordable by middle class family.



GRAPH-9:

Graph showing the attributes considered while purchasing Passion Bike:

MAINTENANCE COST PRICE0

1

2

3

4

5

6

7

8

2

00

2

6

8

2 2




TABLE-10:

Table showing the attributes considered while purchasing Karizma Bike:

ATTRIBUTES VERY

HIGH


MAINTENANCE

COST

02 20 08 - 30

PRICE 14 16 - - 30

ANALYSIS:

From the above table we know that out of 30 respondents, 2 respondents feel maintenance

cost is very high, 20 respondents feel its high and remaining 8 respondents feel it’s

economical. The price of the model, out of 30 respondents 14 respondents feel the cost of

the bike is very high and remaining 16 respondents feel it’s high.

INFERENCE:

From the above analysis we come to know that, majority of the respondents feel the

maintenance cost of the Karizma is high and the price of the bike is also high. This shows

why there are less sales of Karizma compared to other models in Hero Honda. If the price is

reduced the model might increase its sales.

GRAPH-10:



Graph showing the attributes considered while purchasing karizma Bike:

MAINTENANCE COST PRICE

2

14

20

16

8

00 0

KARIZMA


TABLE-11:



Table showing the attributes considered while purchasing CBZ-Xtrem Bike:

ATTRIBUTES VERY

HIGH


MAINTENANCE

COST

- 06 08 - 14

PRICE 02 12 - - 14

ANALYSIS:

From the above table we come to know that out of 14 respondents, 6 respondents feel the

maintenance cost is high and remaining 8 respondents feel it’s economical. Regarding the

price issue 2 respondents feel it’s very high, and remaining 12 respondents feel it’s high.

INFERENCE:

It reveals that majority of the respondents feel that maintenance cost of CBZ-Xtrem is

economical and the price factor tells us it’s high. If price of the bike is reduced or made

economical we might see more sales in this aspect.

GRAPH-11:



Graph showing the attributes considered while purchasing CBZ-Xtrem Bike:

MAINTENANCE COST PRICE0

2

4

6

8

10

12

0

2

6

12

8

00 0


TABLE-12:



Table showing the attributes considered while purchasing Glamour Bike:

ATTRIBUTES VERY

HIGH


MAINTENANCE

COST

- 06 10 02 18

PRICE 02 12 04 02 18

ANALYSIS:

From the above we can analysis that out of 18 respondents, 6 respondents feel the

maintenance cost is high, 10 respondents feel it’s economical and remaining 2 respondents

feel its nominal. Regarding the price, 2 respondents feel it’s very high, 12 respondents feel

its high, 4 respondents feel its economical and remaining 2 respondents feel its nominal.

INFERENCE:

It reveals that majority of the buyers feel the maintenance cost can be manageable and it’s

economical but the price factor of the glamour is high for the respondents. If the company

can reduce this the overall sales will boost up.

GRAPH-12:



Graph showing the attributes considered while purchasing Glamour Bike:

MAINTENANCE COST

PRICE

0 2

6

1210

42

2

GLAMOUR


TABLE-13:



Table showing did respondents test drive the model before purchase:

TEST DRIVE NO. OF RESPONDENTS PERCENTAGE (%)

YES 58 58%

NO 42 42%

TOTAL 100 100

ANALYSIS:

From the above table we can know that 58% had done test drive before purchase and

remaining 42% did not do so.

INFERENCE:

It reveals that majority had a test drive before purchasing, but it’s better to the company if

they can maintain 100% test drive option for the customers. As it maintains good customer

relationship with the company.

GRAPH-13:

Graph showing, did respondents test drive the model before purchase:



YES58%

NO42%

TEST DRIVE

Table-14:

Table showing why respondents did not test drive before purchase:



ANALYSIS:

From the above table we can analyze that 24 respondents didn’t know about the test drive

option, 16 respondents did not opt by themselves and remaining 2 respondents feel its

trustworthiness.

INFERENCE:

The majority did not know about the test drive option. So it’s recommended to the company

that they offer a test drive option before the purchase.

GRAPH-14:

Graph showing why respondents did not test drive the bike before purchase:


Not Opted test drive, as No. OF

RESPONDENTS

PERCENTAGE (%)

I DID NOT KNOW 24 57.14%

NOT OPTED BY ME 16 38.09%

BIKE NOT

AVAILABLE

0 0%

TRUSTWORTHINESS 2 4.76

TOTAL 42 100


I DI...

NOT ...

BIKE ...

TRUS..

.

24

16

02

NOT OPTED TEST DRIVE

NOT OPTED TEST DRIVE

Table-15:

Table showing how respondents came to know about the Hero Honda bike:



ANALYSIS:

From the above table we can know that 2% from Newspaper, 66% from Friends, 20% from

TV ads and remaining 12% from other sources.

INFERENCE:

We know that Hero Honda is spending a lot in advertisements but it has failed to reach the

consumers. Majority have come to known by their friends. Hero Honda will have to increase

its promotional methods.

GRAPH-15:

Graph showing how respondents came to know about the Hero Honda bike:


SOURCES No. OF

RESPONDENTS

PERCENTAGE (%)

NEWSPAPERS 02 2%

FRIENDS 66 66%

TV ADS 20 20%

OTHERS 12 12%

TOTAL 100 100


2%

66%

20%

12%

NEWSPAPERS

FRIENDS

TV ADS

OTHERS

Table-16:

Table showing who motivated the respondents to buy the bike:

FACTORS No. OF

RESPONDENTS

PERCENTAGE (%)

PARENTS 36 36%



FRIENDS/RELATIVES 52 52%

SALES PERSONNEL 06 06%

ADVERTISEMENT 06 06%

TOTAL 100 100

ANALYSIS:

From the above we can infer that parents motivation is 36%, friends/relatives motivation is

52%, sales personnel is 6% and remaining 6% is advertisement.

INFERENCE:

It reveals that majority have taken opinion from friends/relatives followed by parents. But its

better if sales personnel motivates as the consumer will not be having any knowledge before

purchase by telling the product features and other aspects.

GRAPH-16:

Graph showing who motivated the respondents to buy the bike:



PARENTS

FRIENDS/RELATIVES

SALES PERSONNEL

ADVERTISEMENT

36

52

6

6

MOTIVATION

MOTIVATION

Table-17:

Table showing will respondents recommend their model to others:


RECOMMEND

OTHERS

NO. OF

RESPONDENTS

PERCENTAGE (%)

YES 86 86%

NO 14 14%

TOTAL 100 100


ANALYSIS:

From the above table, we can know 86% recommend hero Honda and remaining 14% won’t

recommend Hero Honda.

INFERENCE:

It is revealed that the majority of the respondents wish to recommend others to buy the Hero

Honda, so it can be said that most of the customers are satisfied with the performance of

Hero Honda.

Graph-17:

Graph showing will respondents recommend their model to others:



86%

14%

RECOMMEND

YES NO

TABLE-18:



Table showing respondents answer towards “BRAND AMBASSADOR” of Hero

Honda:

ANALYSIS:

From the above table 50% respondents feel Hrithik roshan, 28% Sachin Tendulkar, 14%

M.S Dhoni and remaining 8% feel it’s Amitabh Bachchan.

INFERENCE:

It reveals that majorities are right, but its only 50% are aware of the brand ambassador of

Hero Honda and remaining 50% are wrong. So hero Honda has to make it more effective in

advertisement.

GRAPH-18:

Graph showing respondents answer towards BRAND AMBASSADOR of Hero Honda:


OPTIONS No. OF RESPONDENTS PERCENTAGE (%)

SACHIN TENDULKAR 28 28%

AMITABH BACHCHAN 8 8%

MS DHONI 14 14%

HRITHIK ROSHAN 50 50%

TOTAL 100 100


SACHIN TENDULKAR

AMITABH BACHCHAN

MS DHONI

HRITHIK ROSHAN

28

8

14

50

BRAND AMBASSADOR

TABLE-19:



Table showing respondents visit to other dealers of HERO HONDA:

ANALYSIS:

From the above table 74% visited majestic mobikes, 14% sai motors, 6% millennium

motors, 4% Prakash motors and remaining sri chandru motors.

INFERENCE:

It reveals that majority have visited more the majestic mobikes and this shows a good sign

for the dealer and has to improve in the future so.

Graph-19:

Graph showing respondents visit to other dealers of HERO HONDA:


SHOWROOM’S VISITED No. OF

RESPONDENTS

PERCENTAGE

(%)

SRICHANDU MOTORS,HOSUR

ROAD

02 02%

PRAKASH MOTORS,LALBAGH

ROAD

04 04%

MILLENNIUM

MOTORS,DOMLUR ROAD

06 06%

SAI MOTORS,BANASHANKARI 14 14%

NONE OF THE ABOVE 74 74%

TOTAL 100 100


SRICHANDU MOTORS,HOSUR ROAD; 2

PRAKASH MOTORS,LALBAGH ROAD; 4

MILLENNIUM MOTORS,DOMLU

R ROAD; 6SAI

MOTORS,BANASHANKARI; 14

NONE OF THE ABOVE; 74

TABLE-20:

Table showing the respondents attitude towards availability of models at dealer’s

showroom:



AVAILABILITY OF MODELS No. OF

RESPONDENTS

PERCENTAGE

(%)

EXCELLENT 48 48%

GOOD 42 42%

AVERAGE 08 08%

POOR 02 02%

TOTAL 100 100

ANALYSIS:

From the table we can infer that, 48% feel the availability of models is excellent, 42% feel

its good, 8% feel its average and remaining 2% feel it’s poor.

INFERENCE:

It reveals that majority of the respondents feel i.e. 48% feel the availability of the models are

very good and are satisfied with the dealers and 42% feel good and the availability factor.

This shows a very good sign for the dealers. It should try to improve more in this regard and

never let down this aspect is future.

GRAPH-20:



Graph showing the respondents attitude towards availability of models at dealer’s

showroom:

48%

42%

8%

2%

AVAILABILITY OF MODELS

EXCELLENT GOOD AVERAGE POOR

TABLE-21:



Table showing the respondents attitude towards sales executive response at dealer’s

showroom:

SALES EXECUTIVE RESPONSE No. OF

RESPONDENTS

PERCENTAGE

(%)

EXCELLENT 02 02%

GOOD 32 32%

AVERAGE 54 54%

POOR 15 15%

TOTAL 100 100

ANALYSIS:

From the above table we come to know about the sales executive response, only 2% feel its

excellent, 32% feel it’s good, 54% feel its average and remaining 12% feel it’s poor.

INFERENCE:

It reveals that majority of them i.e. 54% feel its average in regard with sales executives

response towards them. If the response is much better than this, the consumer will maintain

certain loyalty with the dealers and recommend others towards the dealers.

GRAPH-21:



Graph showing the respondents attitude towards sales executive response at dealer’s

showroom:

2%

32%

54%

12%

SALES EXECUTIVE RESPONSE

EXCELLENT GOOD AVERAGE POOR

Table-22:



Table showing the respondents attitude towards services rendered before purchase at

dealer’s showroom:

SERVICES RENDERED BEFORE

PURCHASE

No. OF

RESPONDENTS

PERCENTAGE

(%)

EXCELLENT 00 00%

GOOD 24 24%

AVERAGE 46 46%

POOR 30 30%

TOTAL 100 100

ANALYSIS:

From the above table we can infer that, 0% feel it’s excellent, 24% feel it’s good, 46% feel

its average and remaining 30% feel its poor with the services rendered before purchase.

INFERENCE:

It reveals that majority of the respondents feels the services are not up to the mark. Only

46% feels it’s an average and remaining 54% are not satisfied with the services aspects of

the dealers. If the dealers increase the service aspects the customers will be satisfied and

dealers can capture the customer’s values.

Graph-22:



Graph showing the respondents attitude towards services rendered before purchase at

dealer’s showroom:

24%

46%

30%

SERVICES RENDERED BEFORE PURCHASEEXCELLENT GOOD AVERAGE POOR

TABLE-23:



Table showing the respondents attitude towards infrastructure of dealer’s showroom:

INFRASTRUCTURE No. OF

RESPONDENTS

PERCENTAGE

(%)

EXCELLENT 20 20%

GOOD 56 56%

AVERAGE 20 20%

POOR 04 04%

TOTAL 100 100

ANALYSIS:

From the above table we can infer, 20% feel its excellent, 56% feel it’s good, 20% feel its

average and remaining 4% feel its poor with the infrastructure of the dealers.

INFERENCE:

It reveals that majority of the respondents i.e. 56% feel it’s good and this shows a good sign

for the dealers. They should try and improve much further to gain advantage from the others

dealers.

GRAPH-23:



Graph showing the respondents attitude towards infrastructure of dealer’s showroom:

EXCELLENT20%

GOOD56%

AVERAGE20%

POOR4%

INFRASTRUCTURE

TABLE-24:



Table showing additional features required by respondents in a bike:

ADDITIONAL

FEATURES


HELMET LOCK 08 08%

BUZZER INDICATOR 10 10%

TEFLON COATING 36 36%

ENGINE GUARD 44 44%

TOTAL 100 100

ANALYSIS:

From the above table we can infer that 8% respondents look for Helmet lock, 10%

respondents look for buzzer indicator, and 36% respondents want Teflon coating and

remaining 44% need engine guard.

INFERENCE:

From the above analysis we can interpret that most of the respondents need ENGINE

GUARD as additional accessory with the bike. So the dealers should provide Engine guard

along with the bike.

GRAPH-24:



Graph showing additional features required by respondents in a bike:

HELMET LOCK

BUZZER INDIC

ATOR

TEFLON COATING

ENGINE GUARD

8 10

3644

ADDITIONAL FEATURES

ADDITIONAL FEATURES

TABLE-25:



Table showing the respondents opinion about the split up of HERO and HONDA:

ANALYSIS:

From the above table we can know that 88% of the respondents say it has impact on Hero

group and remaining 12% respondents says no impact on Hero group.

INFERENCE:

Through this analysis we got to know most of the respondents feel that there will be certain

impact on Hero group after the split up. The hero group will have to improve its

technological aspects and re-modify its brand.

GRAPH-25:


IMPACT ON HERO NO. OF

RESPONDENTS

PERCENTAGE (%)

YES 88 88%

NO 12 12%

TOTAL 100 100


Graph showing the respondents opinion about the split up of HERO and HONDA:

YES

NO

0 10 20 30 40 50 60 70 80 90 100

88

12

SPLIT UP

SPLIT UP



5.1 OBJECTIVES OF THE STUDY:

To know the consumers buying behaviour towards purchase of Hero Honda bikes.

To know the customer expectations regarding that particular bike’s.

To find out the respondent’s/consumer opinion’s about Hero Honda.

To know the factors those are influencing consumers to buy Hero Honda bikes.

To find out the effect on media, advertisements on consumers of Hero Honda bike’s.

To find out whether the consumers recommend Hero Honda to others.

To give appropriate suggestions to company and enhance their performance.

5.2 SCOPE OF THE STUDY:

This study is aimed at providing HERO HONDA at MAJESTIC MOBIKES PVT LTD.

(Authorised dealer of Hero Honda) with an insight on the buying behaviour of consumers

and its patterns regarding Hero Honda bikes as well as the customer’s response and

awareness towards the brand, products, services and other aspects of Hero Honda

The data has been analyzed and presented in a simple and precise way on the basis of which

pertinent recommendations have been made to the company to better the services, policies

and strategies of the company in India. Companies also want the Suggestion for

improvement from consumers of Hero Honda & get Feedback from customer.



5.3 FINDINGS:

1. Being the capital city of Karnataka, Bangalore city has the potential for bikes.

Nowadays youth’s middle age and their preference is towards Hero Honda Bike’s,

with stylish design and increased mileage options.

2. Most popular bikes in Hero Honda are Karizma and Splendor.

3. 48% of the respondents tell Hero Honda bikes have superb mileage than other

company bikes.

4. Majority of the Hero Honda buyers are Students and other occupations.

5. 42% of the respondents did not test drive their models before purchase.

6. 57.14% of the respondents did not know the test drive option at all.

7. 66% of the respondents came to know Hero Honda through Friends.

8. 52% of the buyers were motivated by their friends/relatives to buy Hero Honda.

9. 86% of the buyers will recommend Hero Honda bikes to others.

10. 74% of the respondents are satisfied with Majestic Mobike Dealer.

11. 48% of the respondents feel excellent about availability of models at dealer’s

showroom.

12. 54% of the respondents feel average towards sales executive response towards them.

13. 44% of the respondents want engine guard with the bike.

14. 66% of the respondents who prefer Hero Honda bikes are young and middle aged

people (21-40 years). The preference levels of other age groups are rather low

because of the safety concern.

15. 64% of the respondents are having/had bike.

16. 31.25% are Loyal to Hero Honda Brand.

17. 68.75% of the respondents are not very satisfied with their company bike which they

had/have.

18. 52% of the respondents feel Hero Honda is a trusted brand than others.



19. 64% and 85.71% of Splendor product buyers feel it has economical maintenance cost

and price respectively.

20. 60% and 80% of Passion product buyers feel it has economical maintenance cost and

pricing respectively.

21. 66.6% and 53.3% of Karizma product buyers feel it has High Maintenance cost and

price respectively.

22. 57.14% and 87.71% of CBZ-xtrem buyers feel it has economical maintenance cost

and high pricing respectively.

23. 55.55% and 66.66% of Glamour buyers feel it has an economical maintenance cost

and high pricing respectively.

24. Only 50% of the respondents know the Brand ambassador of Hero Honda.

25. 30% of the respondents feel poor towards services rendered before purchasing a bike.

26. 56% of the respondents feel good about the infrastructure of the dealer’s showroom.

27. 88% of the respondents feel split up of hero and Honda will have effect on hero

group in future.



5.4 CONCLUSION:

Indian 2-wheeler industry is the second largest in Asia after China. After the merger with

Honda Motors the main focus of Hero group has been to capture the Indian Market through

its Product which are Best In terms Of Style, Design and mileage and other aspects and it is

trying to achieve more target of which it has laid down for the coming years.

Young generation and middle aged people are more interested in buying Hero Honda.

Especially students are more buyers of Hero Honda as it had good features, styles, designs

and mileage aspects. Hero Honda has very good loyal customers. This loyalty is based on

the performance of Hero Honda. Most of the two wheelers are not satisfied with the model

which they had/have, so they are opting Hero Honda as their new model. Splendor and

Karizma are the most preferred models in Hero Honda, as it had superb mileage and great

looks respectively. Why consumers are choosing Hero Honda are because of the mileage

factor. Today fuel price are raising and middle class people cannot afford costly bikes with

less mileage. Hero Honda is the company with provides both style as well as mileage.

Majority of the respondents feel it is much trusted brand compared to other companies. Hero

Honda’s pricing strategy is economical and can be affordable by common man as well. In a

country like India where customer generally appreciates mileage it becomes necessary for a

company like Hero Honda to produces Bikes whose prices are economical and more fuel

efficient. After analysis, Hero Honda products are generally made for the Indian roads and

for Indian economy and so it has made the Hero Honda to play a role in future too.

There are certain factors upon which the Hero Honda has to improve regarding the

consumers buying behaviour factors like price, fuel, fashion, good resale value, safety, road

grip, prestige and brand name. If these aspects are increased a bit by Hero Honda then we

might see an overall dominance by Hero Honda in future.

6.1 SUGGESTIONS:



After studying the survey results some important suggestion can be evolved. In the

questionnaire a question’s on Hero Honda and its products were discussed. Some of the

respondents have given very good response towards those. Now Hero Honda should look

after its improvement with changing market and advertisement policy in order to bring the

Bikes in to a still more new attractive and stylish model with all extra ordinary qualities.

The Suggestions are follows:

1. Youths are more attracted and impressed by the performance of Hero Honda’s

products, so they prefer more towards Hero Honda than other two wheelers company,

so the advertisement and sales promotion should be targeted primarily towards them

in an effective and efficient manner.

2. Hero Honda should also advertise their models frequently in TV media in a proper

manner to create the awareness about the new models and attract some more

consumers.

3. Hero Honda should know the consumer expectations towards the bike by providing

additional features and additional accessories with the bike like, Helmet lock, buzzer

indicator, Teflon coating and engine guard.

4. Hero Honda should reduce the pricing aspects of Karizma, CBZ-xtrem and Glamour

for better sales in these products and this will definitely increase the sales.

5. Hero Honda should always keep track with the uncertain changing trend and fashion

and come up with still more stylish Bikes.

6. Hero Honda should come up with new products like mopeds and should also come up

with sports models.

7. Hero Honda should increase its features in all the models like, displays, buttons and

others aspects to enhance its sales.



8. Hero Honda’s Karizma has a high pricing, if they can reduce its price there will be

increase in its sales too.

9. The dealers should recommend the customers for opting a test drive before purchase

as customers will not know about this service.

10. Hero Honda should come up with new advertising strategy.

11. Only few respondents know about the Brand ambassador of Hero Honda, they

should project in a proper manner for the awareness.

12. The dealer should improve the sales executive’s response towards customers as to

maintain a good relationship.

13. The dealer should improve the service aspects before purchase like, test drive option

for capturing the customers values.

14. The dealer should provide some offers like, exchange offers and provide discount for

loyal customers.


Hero Honda Theory

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