1. INTRODUCTION TO THE PROJECT The project is all about
measuring the customer satisfaction in Hero motors. For the past
few years every company is trying to satisfy its customers. The
emphasis is on ways of retaining customers, then on attracting new
customers. It is easy to attract new customers then to retain old
customers. So, companies are trying to focus on this aspect of
customers satisfaction. The sale of a product does not end with the
sale transaction but it is the point at which the original
marketing concept starts. The marketer has to see that whether the
customer satisfied with that particular product/service or not. The
post purchase behavior is important for a marketer. If there is any
cognitive dissonance in the minds of the customers then that is
enough to lose a customer. Keeping this in mind the companies are
giving more importance to customer satisfaction. This project work
has been done to find out whether a customer is satisfied or
dissatisfied, also to measure the level of the customer
satisfaction and provide this feedback to the company. The first
phase of the project involves the collection of information from
the customers for interpreting the characteristics based on which
the customer feels satisfied or dissatisfied. This information is
collected by preparing a structured questionnaire. The
questionnaire consists of both open-ended and closed-ended
questions. The questionnaire is designed in such a way that a
customer feels convenient to answer. The collated information
through the questionnaire is analyzed and presented in a
statistical form. The findings are listed and suggestions to solve
problems faced have been given in the suggestion part.INTRODUCTION
TO CUSTOMER SATISFACTION Whether the buyer is satisfied after
purchase depends on the offers performance in relation to the buyer
expectation. In general satisfaction are a persons feelings of
pleasure or disappointment resulting from comparing a products
perceived performance relation to his/her expectations. If the
performance falls short of expectation, the customer is
dissatisfied. If the performance matches the expectation customer
is satisfied. If the performance exceeds the expectation the
customer is highly satisfied. Customer satisfaction cannot be very
difficult. After all you either satisfied with the services you
receive or you are not. If you dont you are not. If it is that
easy, then obtaining people's opinion about how satisfied they are
with relatively straight forward matter- or is it? Customer
satisfaction is a marketing tool and a definite value added
benefit. It is often perceived by customers as important as the
primary product or service your organization offers. It looks at
what is involved from 3 different angles, the first is from the
view of an organization wishing to understand, and measures, how
satisfied its customer are with the products and services they
receive from it. The second is from the perspective of a research
agency that has been asked to obtain feedback from customers and
about their experiences when dealing with companies. Finally it
considers the issue from the perspective of consumers who
participate in surveys, including both business customers and
members of general public
MEANING OF CUSTOMER SATISFICATION Customer satisfaction is a
business term, is a measure of how products and services supplied
by a company meet or surpass customer expectation. It is seen as a
key performance indicator within business and part of the four
prospective of balanced score card. In a competitive market place
were businesses compete for customers, customer satisfaction is
seen as a key differentiator and increasingly has become a key
element of business strategy customer satisfaction drives
successful private sector business. High performing businesses have
developed principles and strategies for achieving customer
satisfaction. This paper presents a framework or set of ideas for
using customer satisfaction principles and strategies to improve
the quality responsiveness, and possibility of public sector
privately provided services in vulnerable communities The framework
suggested that resident who live in tough neighborhoods can be
supported through customer satisfaction strategies to become
empowered individuals who informed perspectives influence decisions
about what, how, when, and where services are available to them.
Customer satisfaction is the customers response to the evaluation
of the perceived discrepancy between prior expectation and the
actual performance of the product as perceived after its
consumption.
DEFINITION Cocotte, woodruff and Jenkins (1987) define customer
satisfaction as "conceptualized as a feeling developed from an
evaluation of the experience."HERE, the timing of satisfaction
response is driving consumption. BUT there is general agreement
with kotler (2003) that "customer satisfaction is a person's
feeling of pleasure or disappointment resulting from comparing a
products perceived performance in relation to his or her
expectation." In short customer satisfaction is "The provision of
goods or services which fulfill the customer expectation in terms
of quality and service, in relation to price paid."
IMPORTANCE OF CUSTOMER SATISFACTION It costs at least 7 times
more to source a new customer than it does to retain existing one a
'satisfied' customer tells 5-7 people in a year whilst a
'dissatisfied' customer will tell 14-15 people. Companies can boost
profits anywhere from 25% to 125% by retaining a mere 5% more of
their exciting customers. Totally satisfied customers were 6 times
more likely to use that services and commend it than ' satisfied'
customers. Customers who have a bad experience with you and do not
complain are only 37% likely to still do business with you.
Customers who have an opportunity to complain and the complaint is
achieved are 95% likely to still do business with you.
FACTORS OF CUSTOMER SATISFACTION1. Service of quality2.
reliability of service3. knowledge of the staff4. Being kept
informed of progress5. The way service kept its promises6. The way
the service handled any problem Friendliness of staff 7. How
sympathetic staff were to your needs 8. Speed of enquiries 9.
Number of time had to contact the service.
2. REVIEW OF LITERATURE Planning for the future to achieve the
long-term objective is integral to the survival and growth of every
business. Strategic planning today has to take into cognizance the
rapid changes in technology, increased competitiveness and the
turbulent business environment, also with the world becoming one
big global village. Strategy covers every aspect of business from
business reengineering, new business development, product
development and brand positioning to advertisements promotional
campaigns, media and publicity. It is a game of innovation. In
fact, marketing people are involved in marketing 10 types of
entities; goods, services, experience, events, persons, places,
properties, organizations, information and ideas. Marketing
management is the art and science of choosing target markets and
getting, keeping and growing customers through creating, delivering
and communicating superior customer value. India is second largest
manufacturer and producer of two-wheelers in the world. It stands
next to Japan and China in terms of the number of two wheelers
produced and domestic sales respectively. Indian two-wheelers
industry made small beginning in early 50s when Automobile products
of India (API) started manufacturing scooter in India. Hero was
established on 13th of April 1984. The Indian two wheelers Industry
can be broadly classified as scooter, motorcycles and
mopeds/scooters. In last six years domestic two-wheelers has seen
structural charges. This can be seen from the change in composition
of two wheeler sales, where the motorcycles have gained market
share from the scooter and moped or scooters segments.The consumer
is now faced with proliferation of brand models. Getting new
customers as well as retaining them is an important task of
manufacturers. So service after sales is very important. A
satisfied customer brings in more name and goodwill to the company,
which is why customer satisfaction is given more importance in
todays competitive world. A study on this aspect with Hero
two-wheelers at Hero MotoCorp Ltd was made.
STATEMENT OF THE PROBLEMThis Project has been titled A
comprehensive study Post purchase buyer behavior and satisfaction
towards Hero Motors Bikes after the split with Honda."To study the
new market of Hero motors after the split with Honda, the consumer
response to the bike and needed improvement aria The study would
help to understand the consumer satisfaction to their expectation.
OBJECTIVESThis study was conducted keeping the following objectives
in mind. 1. To study the factors which influence the purchase of
Hero two-wheelers? 2. To know the customer level of awareness of
Hero two-wheelers. 3. To know the various factors, which influence
customers in purchasing, theyre two - wheelers? 4. To find the
after sales service offered by Hero MotoCorp Ltd. 5. To know the
customer level of satisfaction of Hero two-wheelers with respect to
Hero MotoCorp Ltd.6. To find the profile of Hero MotoCorp Ltd
two-wheeler customers. 7. To understand two wheeler sector in
India. 8. How the split with Honda has affected Hero motors.
SCOPE OF THE STUDY1. This study helps the organizations to
increase their service and product quality and in turn increase the
market share, top and bottom line of the company.LIMITATIONSI have
observed the following limitations in the course of my study.1. The
areas which were selected were limited only to Bangalore i.e., the
findings are regional and do not represent the state or country. 2.
Time constraints hampered the study.3. Since the study involved in
gathering information was from upper to higher-middle class people,
interaction with them became difficult.4. There may be respondents
bias. 5. Even though utmost care has been taken in conducting the
survey, the findings may sometimes differ from the population. 6.
The study is conducted of academic nature7. The split happened 1
year before, the study not giving the long run result of Hero
Motors Bikes
NEED FOR THE STUDY
Marketing starts with identifying the needs of customers and
ends in satisfying those wants. The goal of marketing is to attract
new customers by promising superior value and to keep current
customers by delivering satisfaction based on their preferences
retaining them. Without customer, no market exists. As the
customers are regarded as the superiors in todays market, the level
of satisfaction and their preferences should be keenly studied. The
two-wheeler industry has been expanding rapidly. Gone are the days
when possessing a two-wheeler was seen as a luxury. Now days, it is
viewed as a mere necessity. Prior, sale of two-wheelers was mainly
confined to urban areas but lately in rural areas the bicycles are
being replaced by power driven two-wheelers such as scooters,
motorcycles. Not only this, this industry has also customers
ranging from all demographic segments. It has been common sights
that even school going children are driving two-wheelers. The women
customers are also increasing due to increase in women literacy and
employment. Getting a new customer is difficult, than retaining a
current customer is a more difficult one and not only that it is
estimated that the cost of attracting a new customer is five times
the cost of retaining current customer. It requires a great deal of
effort to induce satisfied customer to switch away from their
current preference. Thus, customer satisfaction is been given top
priority in todays competitive world. Therefore, keeping the above
stated objective in mind, this study was conducted to ascertain the
customers satisfaction towards Hero two-wheelers in Hero MotoCorp
Ltd. In view of this, a detailed study of customer preferences,
levels of satisfaction and their complaints and suggestions was
undertaken.
METHODOLOGY OF THE STUDYThe information required for this study
obtained was basically through two sources. Primary Data: Primary
Data has been gathered by a survey through a structured
questionnaire. The Data has been collected from 100 customers,
through questionnaires, by using simple random sampling. In
addition interaction with the staff of Hero MotoCorp Ltd has also
given some information. Secondary Data: Secondary Data comprises of
information obtained from annual reports, brochures, manuals
websites etc. 3. INDUSTRY PROFILEThe Indian two-wheeler contributes
the largest volume amongst all the segments in automobile industry.
Though the segment can be broadly categorized into 3 sub-segments
viz. scooters, motorcycles and mopeds; some categories introduced
in the market are a combination of two or more segments e.g.
scooters and step-thru. The market primarily comprises five players
in the two-wheelers segment with the most of the companies having
foreign collaboration with well-known Japanese firms earlier. But
most of the companies are now planning 100% subsidiaries in India.
and growth anticipated is higher than the 16 percent achieved in
the past 10 yearsThe automobiles sector is divided into four
segments-two wheelers(mopeds, scooters, motorcycles, electric
two-wheelers), passenger vehicles (passenger cars, utility
vehicles, multi-purpose vehicles), commercial vehicles (light and
medium-heavy vehicles), and three wheelers (passenger carriers and
good carriers).The industry is one of the key drivers of economic
growth of the nation. Since the globalization of the sector in 1991
and the subsequent opening up of 100 percent FDI through automatic
route, Indian automobile sector has come a long way. Today, almost
every global auto major has set up facilities in the country.The
world standings for the Indian automobile sector, as per the
Confederation of Indian Industry, are as follows:
Largest three-wheeler market Second largest tow-wheeler market
Tenth largest passenger car market Fourth largest tractor market
Fifth largest commercial vehicle market Fifth largest bus and truck
segmentThe sector has shown a sluggish growth of 12 percent in
2012. The trend is likely to stay with a 10 percent growth outlined
for 2013 citing high ownership costs (fuel costs, cost of
registration, excise duty, road tax) and slow rural income growth.
Solid but cautious growth is expected over the next few years.
However, from a long-term perspective, rising incomes, improved
affordability and untapped markets present promising opportunities
for automobile manufactures in India. According to Macquarie
equities research, sale of passenger vehicles is expected to double
in the next four years
Two Wheeler & its role in Indian Context: As the cities grow
& suburbs expand, transportation needs becoming more & more
acute, with mounting pressure on its public transportation for
which two wheelers are ideal. The two-wheeler Industry today has a
significant role in the Indian economy, with an annual turnover of
Rs. 9000 crores and compounded average growth of 10%. In recent
years, it is of the few industrial sectors in the growth phase
today considers personal transportation as one of the basic needs.
The two-wheeler industry basically comprises mopeds, scooters,
scooters and motorcycles. Mopeds are basic entry-level products
aimed at lower/middle income groups, offering company. This
category dominated by TVS SUZUKI, which has a market share of 50%
today. The other major players in this segment include KINETIC
ENGG., HERO MOTORS and BAJAJ AUTO. Scooters, which found largest
segment in the industry (37 percent) is dominated by BAJAJ AUTO. It
is however facing stiff competition from LML, which offers better
style and technology to the Indian customers. However, dominance of
this category has been declining because of shift in the customer
preferences. Major part of the growth in the two-wheeler industry
has come from motorcycle especially, the Indo-Japanese 100cc
motorcycles, which are considered, fuel efficient, reliable and
suited for rough roads. Scooters also growing at a fast phase and
are being increasingly perceived as a better option providing
convenience and motor style, by urban customers. In this category,
TVS Scooty holds a dominant market share. With sales of over three
million vehicles, India is the second largest two-wheeler market in
the world. Vehicle has become a necessity for day-to-day busy life,
with the accelerated industrial and business activity in a
liberalized environment. However, given the limited purchasing
power and to high cost of cars, majority of the middle class
vehicle users prefer two wheelers. With sales of over million
vehicles, India is the second largest two-wheelers market in the
world. China is the market leader with around 51 percent of the
Asia Market, India, Thailand; Indonesia & Taiwan are the other
key markets for two-wheelers with market share of 19 percent, 10
percent, 9 percent and 5 percent respectively. In the last four to
five years, the two-wheeler market has witnessed a market shift
towards motorcycles at the expense of scooters. In the rural areas,
consumers have come to prefer sturdier bikes to withstand the bad
road conditions. In the process the share of motorcycle segment has
grown from 48% to 58%, the share of scooters declined drastically
from 33% to 25%, while that of mopeds declined by 2% from 19% to
17% during the year 2000-01. The Euro emission norms effective from
April 2000 led to the existing players in the two-stroke segment to
install catalytic converters. 4-stroke motorcycles are now
replacing all the new models. Excise duty on motorcycles has been
reduced from 32% to 24%, resulting in price reduction, which has
aided in propelling the demand for motorcycles. Fierce competition
has also forced players to cut prices of certain models.
Competition has intensified over the last couple of years altering
the dynamics in the motorcycle segment with various companies
planning to cash in on this spurt in demand by calling off their
JVs like Suzuki Motors planning to break off with TVS. Recently,
Honda Corporation of Japan announced its intentions to set up a
100% subsidiary to manufacture scooters and motorcycles. Other
players in the two-wheeler industry include Bajaj Auto Ltd.,
Kinetic Motor Co.Ltd. LML and Escorts Yamaha. Low interest regime
has helped in reducing cost of loans, which will help in boosting
sales of 2-wheelers, since 80% of the two-wheelers are credit
stimulated. The two-wheeler industry is passing through a critical
but interesting phase. For many years, it was growing continuously
but the turning point came in 1996=97 when it started slowing down.
The impact was really (MI) felt in the next year when the overall
growth was hardly two percent. This was also possible only because
the motorcycle segment showed a healthy growth of 15 percent. The
scooter segment went down by 3 percent and mopeds by 6
percent.Another highlight is that the motorcycle sales have
surpassed the scooter sales for the first time in 1998-99. Until
then, motorcycle sales were always trailing behind.The net result
is that motorcycles now account for 41 percent of the two-wheeler
market, while scooters account for 36 percent. Mopeds have been
able to hold their own at about 21 percent.
GROWTH OF MOTORCYCLESIt is therefore not surprising that every
major player is trying to get into the Motorcycle market to have a
piece of the cake.Hero MotoCorp Ltd is indisputable the leader with
38 percent share followed by Bajaj with 27 percent (includes M-80),
TVS at 19 percent and Escorts at 13 percent. Now LML and Kinetic
have announced their plans to manufacture motorcycles, which are
likely to come in the market by next year. The battle is expected
to be fierce but the consumer will be the greater beneficiary.The
growth in motorcycles is slowly losing its hold. It is considered a
family vehicle but perhaps there is competition from the second
hand car markets where prices have fallen down rapidly. A1992
Maruti 800 is now available for just 70,000.The scooter
manufactures have to watch this phenomenon and bring our many new
product variants in the right price slots to sustain their shares
in the market. The moped market has been steady with an average
growth of 3 percent. It is dominated by TVS which holds 48 percent
market share followed by Kinetic and Majestic Auto at 23 percent
and 18 percent respectively.In each segment, there is a wide gap
between the first two contenders, which makes their products
positioning and marketing strategies most interesting. The two
wheelers market seems to be maturing. There are the usual their
conventional segment of scooters, mopeds and motorcycles. Two new
segments are being created.
NEW SEGMENTSA Step is through segment like Kinetic K4-100, Honda
Street, Bajaj M-80, which is quite close to the motorcycle segment.
The other segment is scooterettes or mini scooters in which
vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj
Sunny/Sprite/Safire and LML trendy can be considered. These are
vehicles under 75 cc and largely targeted at the youth market such
as college students, young boys and girls and new couples. They get
the advantage of lower excise duty at 16 percent as compared to 24
percent applicable over 75 cc. The trend is towards push button
start vehicles. Among the majors in the two-wheeler industry, first
quarter figure for the current year of some players has been
encouraging. The company sold 313,303 units last month as compared
to 325,360 units in the same month last year. With this, BAL has
recorded as 87 percent growth in the motorcycle segment in the
first quarter with sales of 130,577 units (93,631 units in the
corresponding period last year) BAL estimates market share of the
first quarter-Geared scooters 75.9%, unguarded scooters- 16.5%,
Step-thrus-72.3% and motorcycle-20.5%.In the scooters segment,
sales of Bajaj Sunny and Bajaj Spirit increased by 170 percent to
7,876 units. First quarter sales registered an impressive 78
percent growth with sales of 19,562 (10,995 units). The overall
sales grew by 9.3 percent in the quarter when the company sold 3.24
lakh vehicles.BAL however reported a decline in sales of scooters
by 15.6 percent in the first quarter. The company hopes to increase
the share of motorcycle in its product basket from 18 percent last
year to 30 percent by 2003-04.Hero MotoCorp Ltd enjoys tremendous
brand equity in the motorcycle segment.Kinetic Motors, another
important player, managed to grow in 1999-2000, when the scooters
segments a whole slipped by around 5 percent. TVS Suzuki, a motor
two-wheeler market, has reported a growth of 13 percent in the
first quarter period and sold 2.19 lakh units. Sales of motorcycles
and scooters were up by 18 percent and that of mopeds by 8 percent
over the same period last year.The current year therefore promises
to be a testing time for the two-wheeler industry. Industry pundits
feel that an overall growth rate of 5 percent should be possible as
against 9 percent projected earlier. The sales volume therefore is
expected to be around 3.8 million in 2000-2001.DRAMATIC
CHANGES:HeroMotoCorp is now worlds largest manufacturer of
two-wheelers. The company has benefited from the demand shift to
motorcycles, as it focuses solely on this product segment (although
has a product called Pleasure in Scooter segment). With fuel
efficiency and riding comfort as the main selling points, HMC has
been able to address a wide market and post robust sales growth
even after its separation from the Japanese major Honda.The coming
years will see increasing competition due to the parity in products
and price. The only differentiators will be technology, quality,
product range and service. Imaginative marketing will emphasize
relationship building, customer satisfaction and relationship. All
is exploring new techniques such as direct marketing and
institutional sales. Some of them are taking the vehicle actually
to the customers doorstep. Now the customer is the king.HISTORICAL
DEVELOPMENT OF TWO WHEELER INDUSTRYIndia is the second largest
manufacturer and producer of two-wheelers in the world. It stands
next to Japan and China in terms of the number of two-wheelers
produced and domestic sales respectively. This distinction was
achieved due to variety of reasons as if respective policy followed
by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public
transportation system etc., In 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
1980, it setup a shop to manufacture them in technical
collaboration with Piaggio of Italy. The agreement expired in
1971.In the initial stages, API it was later overtaken by Bajaj
Auto dominating the scooter segment. Although various Government
and Private enterprises entered the fray for scooters, the only new
player that has lasted until 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. The motorcycles
segment was no different, with only three manufacturers via
Enfield, Ideal Jawa and Escorts. While Enfield bullet was a
four-stroke bike, Jawa and the Rajdoot were two-stroke bikes.
Enfield 350cc bikes and Escorts 175cc bike initially dominated the
motorcycle segment. The two-wheeler market was opened to foreign
competition in the mid 80s. And then the market leaders-E5corts and
Enfield- were caught unaware by the onslaught of the 100 cc bikes
of the four IndoJapanese joint ventures. With the availability of
fuel-efficiency low power bikes, demand swelled resulting in Hero
Honda the only producer of four-stroke bikes (100cc category),
gaining a top slot.The first Japanese motorcycles were introduced
in the early eighties. TYS Suzuki and Hero Honda brought in the
first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and
later on progressed to indigenous manufacturing. In the 90s the
major growth for motorcycle segment was brought in by Japanese
motorcycles, which grew at a rate Of nearly 25% CAGR in the last
five years.The industry had a smooth ride in the 50s, 60s and70s
when the government prohibited new entries and strictly controlled
capacity expansion. The industry saw a sudden growth in the 80s.
The industry witnessed a steady growth of 14% leading to a peak
volume of 1.9mm vehicles in 1990. The entry of Kinetic Honda in
mid-eighties with a variometric scooter helped in providing ease of
use to the scooter owners. This helped in inducing youngsters and
working women towards buying scooters, who were earlier inclined
towards moped purchases. In line with this, the scooter segment has
consistently lost its part of the market share in the two~whee1er
market.In 1990, the entire automobile industry saw a drastic fall
in demand. This resulted in a decline of 15% in 1991 and 8% in1992,
resulting in the production loss of 0.4mn vehicles. Barring Hero
Honda, all the major producers suffered from recession in FY93 and
FY94. Hero Honda showed a marginal decline in 1992.The reasons for
recession in the sector were the incessant rise in fuel price, high
input costs and reduced purchasing power due to significant rise in
general price level and credit crunch in consumer financing.
Factors as if increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in either
company reporting losses or fail in profits.India is one of the
very few countries manufacturing three wheelers in the world. It is
the worlds largest manufacturer and seller of three wheelers. Bajaj
Auto commands a monopoly in the domestic market with a market share
of above 80%; Bajaj Tempo, Greaves Ltd and Scooters in India share
the rest. The total number of registered two-wheelers and
three-wheelers on road in India, as on March 1998 was 27.9nm and 1
.7nin respectively. The two-wheeler population has almost doubled
in 1996 from a base of 12.6mn in 1990.PENETRATION OF
TWO-WHEELERS:On a base of around 28mn vehicles on Indian roads and
around 175mn households, there were only 160 motorized two-wheelers
per thousand households in FY98. This compares poorly with
countries like Thailand where it is around 600 per thousand
households. Also with a household size of 5.5 persons and more than
one wage earner in about 60% of the households, the potential for a
second vehicle demand is also good.The number of households in the
low-income group has fallen since FY86 and has been more pronounced
in the post-reform period. On the other hand, the number of
households in the middle, upper middle and high-income groups that
form the consumer base for twowheelers, have increased. Their share
of the total number of households has increased from 10.6% in FY88
to 20.5% inFY96. This rising income profile however, has, been more
pronounced in the urban areas as average annual growth in industry
surpassed that of agriculture in the period FY93 to FY96.
4. COMPANY PROFILEHero MotoCorp Ltd. (Formerly Hero Honda Motors
Ltd.) is the world's largest manufacturer of two - wheelers, based
in India. In 2001, the company achieved the coveted position of
being the largest two-wheeler manufacturing company in India and
also, the 'World No.1' two-wheeler company in terms of unit volume
sales in a calendar year. Hero MotoCorp Ltd. continues to maintain
this position till date.HeroMotoCorp is now worlds largest
manufacturer of two-wheelers. The company has benefited from the
demand shift to motorcycles, as it focuses solely on this product
segment (although has a product called Pleasure in Scooter
segment). With fuel efficiency and riding comfort as the main
selling points, HMC has been able to address a wide market and post
robust sales growth even after its separation from the Japanese
major Honda.VISIONThe story began with a simple vision the vision
of a mobile and an empowered India, powered by its bikes. Hero
MotoCorp Ltd., companys new identity, reflects its commitment
towards providing world class mobility solutions with renewed focus
on expanding companys footprint in the global arena. MISSIONHero
MotoCorp's mission is to become a global enterprise fulfilling its
customers' needs and aspirations for mobility, setting benchmarks
in technology, styling and quality so that it converts its
customers into its brand advocates. The company will provide an
engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and
enduring relationships with its partners.STRATEGYHero MotoCorp's
key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously
improve its operational efficiency, aggressively expand its reach
to customers, continue to invest in brand building activities and
ensure customer and shareholder delight.MANUFACTURINGHero MotoCorp
two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and
Dharuhera which are located in the state of Haryana in northern
India. The third and the latest manufacturing plant are based at
Haridwar, in the hill state of Uttrakhand.
TECHNOLOGYIn the 1980's the Company pioneered the introduction
of fuel-efficient, environment friendly four-stroke motorcycles in
the country. It became the first company to launch the Fuel
Injection (FI) technology in Indian motorcycles, with the launch of
the Glamour FI in June 2006. Its plants use world class equipment
and processes and have become a benchmark in leanness and
productivity.Hero MotoCorp, in its endeavor to remain a pioneer in
technology, will continue to innovate and develop cutting edge
products and processesDISTRIBUTIONThe Company's growth in the two
wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero
MotoCorp's extensive sales and service network now spans over to
5000 customer touch points. These comprise a mix of authorized
dealerships, service & spare parts outlets and dealer-appointed
outlets across the country.Supply chain management As the Company
prepares to produce a wider range of products, efforts are being
taken to align the supply chain and prime up its supplier base.
During the year, the Company kick-started the process of migrating
its existing brands to the new brand. The exercise is expected to
be completed during 2012-13.During the year, the Company also
commenced the process of working with its vendors to develop new
parts. The Companys Supply Chain Management function is built on
three planks: Cost Quality SustainabilityTracking inventory cost
effectively and efficiently is known to be a key source of
competitive advantage in the automobile industry. Hence, it comes
as no surprise that cost leadership is the Companys prime focus
area. Continual pressure on margins forced the Company and its
supply chain partners to find innovative and alternate ways to
combat inflation. Considerable attention was given to managing
component inventory in the system, with double-digit growth in
inventory turnover. To align HR processes with the supply chain,
top two HR consulting firms in India are working with supply chain
partners. The exercise is aimed at improving robustness of people
processes and resulting in a direct impact on quality, cost,
productivity, delivery and reliability. The move will enable supply
chain partners move to the next orbit of operational excellence.
The Company initiated more than 30 quality improvement projects
with supply chain partners to provide better quality products to
customers. BRANDThe new Hero is rising and is poised to shine on
the global arena. Company's new identity "Hero MotoCorp Ltd." is
truly reflective of its vision to strengthen focus on mobility and
technology and creating global footprint. Building and promoting
new brand identity will be central to all its initiatives,
utilizing every opportunity and leveraging its strong presence
across sports, entertainment and ground- level
activation.DirectorsFounder Director and Chairman:Dr. Brijmohan
Lall MunjalManaging Director and CEO:Mr. Pawan Munjal.Board of
DirectorsName of the personNature of the Office
Mr. Sunil Kant MunjalNon Executive Director
Mr. Suman Kant MunjalDirector
Mr. Paul EdgerleyNon Executive Director
Mr. Pradeep DinodiaDirector
Gen. (Retd.) V. P. MalikDirector
Mr. Analjit SinghDirector
Dr. Pritam SinghDirector
Mr. M. DamodaranDirector
Mr. RavinathDirector
Dr. Anand C.BurmanDirector
Dr. Brijmohan Lall Munjal Mr. Munjal is the founder Director and
Chairman of the Company and the $3.2 billion Hero Group. He is the
Past President of Confederation of Indian Industry (CII), Society
of Indian Automobile Manufacturers (SIAM) and was a Member of the
Board of the Country's Central Bank (Reserve Bank of India). In
recognition of his contribution to industry, Mr. Munjal was
conferred the Padma Bhushan Award by the Union Government
Corporate Governance At Hero MotoCorp, it is the firms belief
that the essence of Corporate Governance lies in the phrase ''Your
Company''. It is ''Your'' Company because it belongs to you - the
shareholders. The Chairman and Directors are ''Your'' fiduciaries
and trustees. Their objective is to take the business forward in
such a way that it maximizes ''Your'' long-term value. This Company
is committed to benchmarking itself with global standards for
providing good Corporate Governance. It has put in place an
effective Corporate Governance System which ensures that the
provisions of Clause 49 of the Listing Agreement are duly complied
with.The Board has also evolved and adopted a Code of Conduct based
on the principles of Good Corporate Governance and best management
practices being followed globally. Headquarter and
BranchesCorporate & Registered OfficeHero MotoCorp Ltd.34,
Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057,
India.Tel: +91-11-26142451, 26144121Fax: +91-11-26143321,
26143198
Zonal OfficesEast ZoneHero MotoCorp Ltd3F, Neelamber Building,
28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India. Tel:
+91-33-22810926 22810927, 22808922, 22811185Fax:
+91-33-22808923Email: [email protected]
West ZoneHero MotoCorp Ltd.15-A, Bhale Estate, Rear Wing, Third
Floor, Pune-Mumbai Road,Wakadewali, Pune - 411 003, India. Tel:
+91-20-25511577, 25512161, 56012990-91Fax: +91-20-25511266Email:
[email protected]
North ZoneHero MotoCorp Ltd.F-126, Katwaria Sarai, Opp. Qutab
Institutional Area,New Delhi -110016, India. Tel:
+91-11-26533981-2, 47619300Fax: +91-11-26533983Email:
[email protected] ZoneHero MotoCorp Ltd.No - 294, 2nd
Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage, Indira Nagar,
Bangalore 560038, India.Tel: +91-80-25550430, 25584436, 25582436,
25321139Fax: +91-80-25594036Email: [email protected]
GRADING POSITIVESMarket leadership, strong brand equity,
professional management, high operating efficiency and established
scale economies. Strong financial profile characterized by healthy
margins, high profitability and cash generation. Potential upsides
to our estimates: (1) HMCL sustains its current market share,
leveraging its brand equity, product performance and distribution
strengths; (2) industry growth exceeds our estimates over the
medium term despite existing concerns on macro-economic scenario;
(3) HMCL betters the margins estimated by us via sustained business
growth and increases in operating efficiency even in the face of
competitive and cost pressures.
GRADING SENSITIVITIESKey sensitivities to our estimates include:
(1) Inflation in input costs not being neutralized by price
increases because of competitive pressures; (2) High concentration
on Executive segment; (3) Intensifying competition from global
players; (4) Ability to develop in-house technical capability or
form alternate technical tie-ups with external institutions.
Company History - Hero Moto Corp1983 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 produced1989New motorcycle model -
"Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced 500,000th
motorcycle produced1992 Raman Munjal Vidya Mandir inaugurated - A
School in the memory of founder Managing Director, Mr. Raman Kant
Munjal1994 New motorcycle model - "Splendor" introduced 1,000,000th
motorcycle produced1997 New motorcycle model - "Street" introduced
Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated1998
2,000,000th motorcycle produced1999 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 Munjal2000 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 launched2001 New motorcycle model - "Passion" introduced
One million production in one single year New motorcycle model -
"Joy" introduced 5,000,000th motorcycle produced2002 New motorcycle
model - "Dawn" introduced New motorcycle model - "Ambition"
introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,
Harbhajan Singh and Zaheer Khan as Brand Ambassadors2003 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 motorcycles2005 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" introduced2006
Hero Honda is the World No. 1 for the 5th year in a row 15 million
production milestone achieved2007 Hero Honda is the World No. 1 for
the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe'
launched New 'Passion Plus' launched New motorcycle model 'Hunk'
launched 20 million production milestone achieved2008 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 25 million production milestone
achieved CD Deluxe lauched with power start feature New 'Glamour'
launched New 'Glamour Fi' launched2009 Hero Honda GoodLife Program
launched Hunk' (Limited Edition) launched Splendor completed 11
million production landmark New motorcycle model 'Karizma - ZMR'
launched Silver jubilee celebrations2010 New model Splendor Pro
launched Launch of new Super Splendor and New Hunk2011 New
licensing arrangement signed between Hero and Honda (Hero Honda is
renamed as Hero) Launch of new refreshed versions of Glamour,
Glamour Fi, CBZ Xtreme, Karizma Crosses the landmark figure of 5
million cumulative sales in a single year 2012 45% market share in
the domestic two-wheeler market 56% market share in the domestic
motorcycle market Declared a dividend of 2,250% in 2011-12, i.e. 45
per equity share of the face value of 2 per share Awards &
Recognitions on 2011 Two-wheeler Manufacturer of the Year award by
Bike India magazine. Adjudged the "Bike Manufacturer of the Year"
at the Economic Times ZigWheels Car and Bike Awards. CNBC Awaaz -
Storyboard special commendation for "Effective rebranding of a new
corporate entity" by CNBC Awaaz Consumer Awards "Most Recommended
Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards
Colloquy Loyalty Awards "Innovation in Loyalty Marketing
International 2011" for Hero Good Life "Best Activity Generating
Short or Long-Term Brand Loyalty" by the Promotion Marketing Award
of Asia Order of Merit for Hero Good Life Ranked No 1 brand in the
Auto (Two-Wheelers) category in the Brand Equity "Most Trusted
Brand" 2011 serve
Sales figures OEMF12F11Growth (%)
1Hero Moto corp6235205540244415.41
2Bajaj3834405338704313.21
3TVS215837520068087.55
4Honda (scooters)124077190783236.67
Honda (Motorcycle)86645774889515.70
Hero HMSI2107228165672727.19
5Yamaha48489137310029.96
6Suzuki34089328215620.82
7Mahindra134750163935-17.80
Source: - www.motorbeam.com
Profile of target customerHero MotoCorp basically targets the
every each and segments of the market. So there are some products
like splendor, CD- dawn (rs40000-50000) they made for lower segment
of the market and glamour, passion, CBZ, karizma (rs above 50000)
for the upper segment of the market. And now they are trying to
target the young people of the market.Indias Hero MotoCorp, the
worlds largest producer of motorcycles and scooters, has announced
its intention to expand globally, with plans to sell vehicles on
three continents and nearly double its unit sales within five
years. The company, whose family shareholders bought out its former
partner Honda Motor this year, said it would invest about $1bn to
expand internationally in south-east Asia, Africa, and Central and
Latin America.
Customer Relationship ActivityFor making a better relationship
with customer they always use genuine parts in their product. And
after selling they have the services and maintenances. Their
constant endeavor is to support the company's mandate of providing
highest level of customer satisfaction by taking good care of
customers two-wheeler service and maintenance through their vast
network of more than 2100 committed dealers and service outlets
spread across the country.Apart from that hero motocorp focused on
cleanliness and other aesthetics of the service stations and add
such air conditioned waiting area, internet surfing, coffee shops
etc to enhance the in house experience of the customers at those
customer touch point. To ensure that millions of customers in the
rural area are not left waiting for adequate service as it is
impossible for the company to introduce service station at every
nook and corner of the country, mobile service stations are
regularly arranged with prior intimation to public about the rout
that the mobile workshop would take when passing through that
region so that customers can come and get their two wheelers
serviced. All these activities are aimed to increase the customer
loyalty and thus retaining customers.Good life: Customer Loyalty
ProgramGood Life is a Customer Relationship Program introduced a
decade ago, which Endeavours to enhance customer satisfaction and
initiate increased levels of member engagement.The main objective
of this Program is to make our customers our Brand Ambassadors to
generate referral sales and boost service visits.The GoodLife
Program has enabled the Company build a consolidated base of 10
million plus loyal customers; in the process, a new distribution
platform has emerged. GoodLife now contributes a huge 14% to the
Companys overall sales (purely through referrals), in addition to
incremental sales. GoodLife has emerged as the largest Customer
Relationship Program in India, witnessing additions of 0.38 million
members each month. During the year, the Programs member base shot
up 16%, with new 4.51 million transactions being undertaken.Besides
aiming to increase the number of customers and volume of
transactions, the Program seeks to enhance revenue opportunities
for dealers as well. Different levels of engagement have been
in-built into the Program with the aim of increasing its people
engagement initiatives. Some of these are: transaction-based
rewards, exclusive event invites, personal accidental insurance,
service continuity bonus, transaction benefits on special occasions
(birthdays, anniversaries), quarterly newsletters and interaction
through a program website.The Program began with a member
transaction booklet, a replica of the Passport Booklet, which helps
in engaging with customers. However, the Program has been e-enabled
now to improve its geographical reach and efficiency level. It runs
on the backbone of a robust and engaging front-end and a sound,
solid and technical back-end. The Program includes customized
technology, combining a mix of Magnetic Swipe/Bar Code.
Personalized Membership Cards are shared with GoodLife members,
which are easy to carry, transact and earn/redeem rewards. Online
member profiling and real-time customer feedback module (via
questionnaires) are some more salient features of the Program.
During the year, GoodLife has been the recipient of several
accolades and awards on national and international platforms. Some
of these were: Order of Merit in PMAA awards 2011 under Best
Activity Generating Short or Long Term Brand Loyalty category
Colloquy Award under Innovation in Loyalty Marketing
(International) category Qualified as ECHO Finalist (5th place) in
2011 DMA International ECHO Awards competition Loyalty Award under
Auto Sector OPERATION RAMP-UPWith demand for bikes recording a
stupendous growth of 15% during the year under review, the Companys
capacities were severely strained. This prompted it to augment its
capacity at its three plants up from 5.4 million units to 6.35
million during the year. This was made possible through a number of
de-bottlenecking measures. For example, the Companys plants were
made leaner by outsourcing non-critical processes and
operations.Besides this, a number of structural changes and
alterations were made in its manufacturing strategy to effectively
implement its Sales Plan for 2012-13.Major replacements were also
executed in the paint and assembly shop, ensuring little or no
shutdown along the assembly line. Apart from the above measures,
several innovative technologies were inculcated to reduce
operational costs. Some examples of these are: A breakthrough
technology for gear rolling was implemented for mass-production
Fine blanking, an alternate process of hobbling, was introduced for
sprocket components Advanced cam grinding was introduced to
increase productivity and control costsThe Companys oldest plant at
Dharuhera was in the limelight for two specific reasons: Wage
negotiations were concluded Plant won TPM Excellence AwardThe
Company continues to set new industry benchmarks in the areas of
energy conservation and sustainability. Vapour absorption machines
and heat recovery units were installed during the year to utilize
waste heat from Gas DGs for air-conditioning and pre-heating of hot
water generation. Other green initiatives included projects on
waste water management, LED lighting and solar power. These cost
leadership and green projects yielded considerable savings to the
Company within a short period of time.
PORTFOLIO OF PRODUCTSHero MotoCorp offers wide range of two
wheeler products that include motorcycles and scooters, and has set
the industry standards across all the market segments.
100ccBike category SPLENDOR PLUS SPLENDOR NXG SPLENDOR PRO
PASSION PRO PASSION XPRO MAESTRO PLEASURE HF DAWN HF DELUXE
125cc Bike category GLAMOUR SUPER SPLENDOR IGNITOR Glamour PGM
FI
150cc Bike category ACHIEVER KARIZMA KARIZMA ZMR IMPULSE HUNK
XTREME
Termination of Honda joint venture In December 2010, the board
of directors of the Hero Honda Group has decided to terminate the
joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the
Honda in JV Hero Honda.Under the joint venture Hero Group could not
export to international markets (except Sri Lanka) and the
termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda
for the technology in their bikes. So there are concerns that the
Hero Group might not be able to sustain the performance of the
Joint Venture alone. The Japanese auto major will exit the joint
venture through a series of off market transactions by giving the
Munjal familythat held a 26% stake in the companyan additional 26%.
Honda, which also has an independent fully owned two wheeler
subsidiaryHonda Motorcycle and Scooter India (HMSI)will exit Hero
Honda at a discount and get over $1 billion for its stake. The
discount will be between 30% and 50% to the current value of
Honda's stake as per the price of the stock after the market closed
on Wednesday. The rising differences between the two partners
gradually emerged as an irritant. Differences had been brewing for
a few years before the split over a variety of issues, ranging
fromHonda's reluctance to fully and freely share technology with
Hero (despite a 10-year technology tie-up that expires in 2014) as
well as Indian partner's uneasiness over high royalty payouts to
the Japanese company. Another major irritant for Honda was the
refusal ofHero Honda(mainly managed by the Munjal family) to merge
the company's spare parts business withHonda's new fully owned
subsidiaryHonda Motorcycle and Scooter India(HMSI). As per the
arrangement, it will be a two-leg deal. In the first part, the
Munjal family, led by Brijmohan Lal Munjal group, will form an
overseas-incorporated special purpose vehicle (SPV) to buy out
Honda's entire stake, which will be backed by bridge loans. This
SPV would eventually be thrown open for private equity
participation and those in the fray includeWarburg Pincus,Kohlberg
Kravis Roberts(KKR),TPG,Bain Capital, andCarlyle Group.Honda will
continue to provide technology to Hero Honda motorbikes until 2014
for existing as well as future models.
4. DATA ANALYSIS AND INTEPRETATIONTable- 4.1 Showing type of
Hero two wheeler models ownedNumName of Hero two wheelerNo. of
respondents
1SPLENDOR PLUS25
2SPLENDOR PRO10
3PASSION PRO30
4HUNK2
5GLAMOUR3
6KARIZMA ZMR2
7KARIZMA1
8MAESTRO3
9SUPER SPLENDOR2
10SPLENDOR NXG5
11PLEASURE6
12HF DAWN1
13PASSION XPRO9
14IMPULSE1
Total100
Inference:- From the above table it is inferred that, 30% of
respondents held Passion Pro and 25% of respondents held Splendor
Plus, Splendor Pro 10%, and Passion Xpro 9%. The remaining two
wheelers are very less in %. The table is inferred that some of the
models are very less in market. This formed the basis of the
study.
Chart 4.1 Showing type of Hero two wheeler models owned in %
Table- 4.2 showing the source of information about Hero
SourcesNo. of respondents
News paper ads 9
Television ads57
Roadside Boardings14
Others20
Total100
Inference: From the above table it is inferred that people are
getting information about hero two wheelers from television ads,
more than 50% of people are watching TV ads. Roadside Boarding
& news paper are less in performance; other sources contain
motor shows, internet ads.
Chart 4.2 showing the source of information about Hero
Table- 4.3 showing the influenced people for buying Hero
Influenced peopleNo. of respondents
Family34
Myself16
Friend35
Sales representative15
Total100
Inference: - From the above table it is observed that, the
buying behavior people mostly influenced by family and friends the
other factor is have less level of influence. The people how using
bike mostly youth & middle class people and they are influenced
by their friends and family respectively. The above table showing
that 35% of people influenced by their friends 34% people through
family 16% people is buying on their need. 15% because of sales
representative
Chart 4.3 showing the number people influenced for buying
Table- 4.4 showing the preference of capacity & colour
CapacityNo. of respondentsPreference of colorNo. of respondents
100cc17Blue23
125cc28Red24
150cc35Black39
200cc20Other14
Total100Total100
Inference: -From the above table it is observed that, the bike
cc preference is deferent customer to customer but the 35% people
like 150cc bike and 28% like 125cc, 200cc bike 20% others 100cc.e
preference of color BLACK is rating at near to 40% of people after
that 24% like Red color 23% Blue also . Other color like white
getting less importance in selection
Chart 4.4(1) showing the preference of capacity
Chart 4.4(2) showing the preference of colour
Table- 4.5 showing the responses on Vehicle delivery time
respondentsNo. of respondents
Yes (on time)78
NO (not on time)22
Total100
Inference: - From the above table it is observed that, 78% of
respondents got delivery of their vehicle on time 22% says that the
delivery of vehicle got delay After enquire about the 22% its
showing that they asked for very demand vehicle like PASSION &
SPLENDOR bikes and some of them ask new bike like Maestro
Chart 4.5 showing the responses on Vehicle delivery time
Table- 4.6 showing availability test drive during on showroom
visit
RespondentsNo. of respondents
Yes 92
NO 8
Total100
Inference: - From the above table it is observed that, 92% of
respondents got test drive during their showroom visit, other 8%
didnt got because of two reason some of them ask the bike that not
showcase in showrooms and some of them gone small showrooms
Chart 4.6 showing availability test drive during on showroom
visit
Table- 4.7 showing the reliability of Vehicle
RespondentsNo. of respondents
Excellent16
Good23
Moderate21
Satisfactory39
unsatisfactory1
Total100
Inference: - The above table shows how the customer rate the
reliability of Hero bike, it is observed that 16% of them telling
its excellent 23% respond that its good and 21% have moderate
opinion 39% is satisfied with the performance and 1 of the
respondent is not satisfied with the Hero bike.
Chart 4.7 showing the reliability of Vehicle
Table- 4.8 showing level of Service Satisfaction RespondentsNo.
of respondents
Completely satisfied34
satisfied39
dissatisfied12
Not at all satisfied15
Total100
Inference:-The above table shows the satisfaction towards Hero
bike on the time of Service 34% of respondents are completely
satisfied with the service provide by the company and 39% customers
are satisfied and 12% dissatisfied, 15% is not at all satisfied
with the service provide by the company the following chart shows
it more clearly
Chart 4.8 showing level of Service Satisfaction
Table- 4.9 showing the brand name influence in purchase
RespondentsNo. of respondentsPercentage
Yes 7474%
NO 2626%
Total100100%
Inference:-From the above table it is observed that, the
customers are influenced by the brand name HERO MOTOCROP 74% of
respondents are influence by the brand name and 26% are not the
brand HERO is the most selling bike in India and Its is the brand
that selling more bike in the world also
Chart 4.9 showing the brand name influence in purchase
Table- 4.10 showing the reason for preferencePreferenceNo. Of
RespondentsPercentage
Quality2525%
Price2020%
Brand Image2424%
Fuel efficiency3131%
TOTAL100100%
INTERPRETATION:From the above table we can infer that 25% of the
respondents gave preference to quality, 20% of respondents gave
preference to price, 24% of respondents gave preference to brand
image and 31% of the respondents gave preference to fuel
efficiency.From the above findings, we can analyze that 69% of
respondents were more quality conscious and only 31% respondents
gave preference to price and fuel efficiency. The reasons are even
though people are price conscious to some extent; the consumers are
more quality conscious than price conscious because they have
enough income to buy two-wheeler.
Chart 4.10 showing the reason for preference
Table - 4.11 showing how long customer using hero two
wheelers
Time periodNo. Of Respondents
Less than 6 month24
6-9 month23
9 -1 year32
More than 1 year21
TOTAL100
Inference:- From the above table we can infer that how long the
customer holds the bike the split between Hero and Honda happen
less than 3 year back and this table help to know the using period
of customer 79% of people that in the research is brought their
bike in the last year and 21% is using the bike more than 1
year.
Chart 4.11 showing how long customer using hero two wheelers
Table - 4.12 showing the area that Customer demanding to improve
in service AreaNo. Of Respondents in %
Service in time31
Reliable service16
Well trained mechanics27
less labor charge26
TOTAL100
Inference:- From the above table it is observed that, what is
customer need that Hero wants to improve, 31% need improvement in
service in time, 16% in reliable service, and 27% need well trained
mechanics, 26% less labor charge.
Chart 4.12 showing the area that Customer demanding to improve
in service
Table - 4.13 showing the problems face at the time of
service
ResponsesNo. Of Respondents in %
High price spare parts 29
Low quality of spare parts14
Delay in service 29
No problems28
TOTAL100
Inference:- From the above table it is observed that, the
customers are facing deferent problems at the time of service, 29%
face high price of spare parts, 14% face low quality of spare
parts, 29% face delay in service, 28% respondents they didnt face
any problem.
Chart 4.13 showing the problems face at the time of service
Table - 4.14 showing the rating of Service Performance of Hero
Motors
ResponseNO. OF RESPONDENTSPERCENTAGE
Very good3434%
Good2020%
Average3232%
Bad88%
Very Bad66%
TOTAL100100%
Inference:- From the above table it is observed that, 34% of
customer says service performance gives by Hero MotoCorp Ltd, Is
very good and 20% says its good , 32% says the service is average,8
respondents says the service is bad and 6% says its very bad, To
overall we can conclude that more than 85% is satisfied with the
service provide by Hero MotoCorp Ltd.
Chart 4.14 showing the rating of Service Performance of Hero
Motors
Table - 4.15 showing the good thing associate with your
brand
ResponseNO. OF RESPONDENTSPERCENTAGE
Solid engineering1616%
Innovative features2525%
Value of money 2121%
High and consistent mileage 2929%
Better after sale service99%
TOTAL100100%
Inference:- From the above table it is observed that, what the
customer feel that make Hero deferent from other bike, 16% like the
solid engineering, 25% says innovative features is good about Hero
MotoCorp , 21% respond that Hero giving the value of money, 29%
brought because of consistent mileage of Hero,9% like after sale
service of Hero MotoCorp Ltd.
Chart 4.15 showing the good thing associate with your brand
Table - 4.16 showing the friend recommendation for Hero
bikes
RespondentsNo. of respondentsPercentage
Yes 8282%
NO 1818%
Total100100%
Inference:- From the above table it is observed that, Out of the
respondents 82% people will recommend Hero bike to their friends
its showing the 82% of customer are satisfied with their Hero bike,
and the remaining 18 % because of some reason not recommending Hero
bike to their friends
Chart 4.16 showing that recommendation to Hero bikes
SUMMARY OF FINDINGS
1. The Hero MotoCorp is leading the market. The difference is
too big to cope up with, for any manufacturer in short span. With
proven products and many people having faith in brand, it is quite
a difficult task for others to take the Heros number one
position.2. Hero MotoCorp Indias no. 1 two wheeler companies have
posted growth of 11.28% in the month of May 2012 compared to May
2011.3. Ability to understand customers needs and wants,
maintenance cost is low.4. Passion Pro, Splendor Plus, are the two
models that Hero MotoCorp selling a big number 5. The TV promotions
are more influence the customer behavior of two wheeler sector.6.
The purchase desiccations of consumers are influence by friends and
family.7. Blue, Red, Black color bike with 150 cc to 200cc is fast
moving.8. Most of the despondences are agree that the bikes are
delivering proper time.9. The service provide by Hero MotoCorp is
satisfied by more than 70% of customers.10. Brand name of Hero is
still good in market after split with Honda, 74% of people like the
brand HERO"11. Quality, price, Brand image, Fuel efficiency is
getting equal importance in satisfaction 12. The research showing
that consumer want to get more service satisfaction.13. 82% of the
customer likes to recommend Hero two wheeler to their friends, its
shows they are satisfied with the bike.
SUGGESTIONS AND RECOMMENDATIONSIt is very hard to hold the pulse
of a customer in the market. Customers satisfaction is different
for different people at different situations; Majority of the
respondents were still unaware about different versions of Hero
bikes. Therefore I suggest the company personals should take
initiative to create awareness about these versions. Few of the
customers expressed concern over frequency of the maintenance &
service problems faced by their vehicle and expressed high
satisfaction over it. Therefore, I suggest them to re look at the
vehicle & re-develop in order to stop the frequency of these
problems. Hero MotoCorp want to give more importance in there
service part its include timely service, and quality of service
Hero want to develop more promotion for there some models like
sports bike and gear less scooter Hero bikes want to increase their
export market Hero MotoCorp Ltd should try to give more
advertisements in news paper, bill boards in that area to enable
easy recall of the people for Hero MotoCorp Ltd.
CONCLUSIONCustomer satisfaction is a marketing tool and a
definite value added benefit. It is often perceived by customers as
important as the primary product or service your organization
offers.For making a better relationship with customer they always
use genuine parts in their product. And after selling they have the
services and maintenances. Their constant endeavor is to support
the company's mandate of providing highest level of customer
satisfaction by taking good care of customers two-wheeler service
and maintenance through their vast network of more than 2100
committed dealers and service outlets spread across the
country.
7Apart from that hero MotoCorp Ltd focused on cleanliness and
other aesthetics of the service stations and add such air
conditioned waiting area, internet surfing, coffee shops etc to
enhance the in house experience of the customers at those customer
touch point. To ensure that millions of customers in the rural area
are not left waiting for adequate service as it is impossible for
the company to introduce service station at every nook and corner
of the country, mobile service stations are regularly arranged with
prior intimation to public about the rout that the mobile workshop
would take when passing through that region so that customers can
come and get their two wheelers serviced. All these activities are
aimed to increase the customer loyalty and thus retaining
customers.
Page 80 Garden City College of Science & Management
Studies