A Project Report on Customer awareness and effectiveness of Hero Honda passport program mba

EXECUTIVE SUMMERY

A project report containing the marketing research on “Customer awareness and

effectiveness of Hero Honda passport program” HHPP is a program launched by the

company to build long term relations with customers & to promote the sales of original

spares & services. From authorized dealer only.

It was an opportunity to learn the practical aspects of industries. I choose this topic

concerned to company requirement. Hero Honda company is market leader in two-wheeler

segment. And to maintain this relation they need strong relation with their customers. And

achieve that company has launched this HHPP program.

Now company want to know the awareness & effectiveness of this program.

So they need to know, what is the awareness level & the customer response about Hero

Honda passport program was needed I collated the information by a structured questionnaire

that included requirements what the company needed & the questionnaire is attached in the

appendix.

Babasabpatilfreepptmba.com Page 1

“Customer awareness and effectiveness of Hero Honda passport program”

Industrial Profile:

Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters.

Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda

from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles

since 2001, when it produced 1.3 million motorbikes in a single year.

Company profile:

“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship

company Hero Cycles. The two-wheeler manufacturing business of bicycle components had

originally started in the 1940’s and turned into the world’s largest bicycle manufacturer

today. Hero is a name synonymous with two-wheelers in India today. The Munjals roll their

own steel, make free wheel bicycle critical components and have diversified into different

ventures like product design

Need for study:

Industrialist and mangers, who earlier perceived management to be more of an art, have

started realizing that management of business requires a more systematic and scientific

approach and are looking to theory for basis management solutions. This has resulted in

exhaustive R&D in business theory, which has given has given also Management

Information Systems.

To determine the awareness of Hero Honda passport program

To get ideas for improvement from customers

To know the attitude of the customers about HHPP

To spares & services from authorized dealers


http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Honda


OBJECTIVES OF THE STUDY

1) To know the awareness level of customer about Hero Honda passport program.

2) To know the effectiveness of Hero Honda passport program.

3) To know the attitude of customers

4) To suggest the Ideas for improvement of Hero Honda Passport Program.

SCOPE OF THE STUDY

The main purpose of the study is to know the customer awareness, effectiveness. The

study is conducted in Ilkal town. This study helps the company to know the effectiveness

of this program in Ilkal town at Basveshwar Motors.

METHODOLOGY

The methodology is the plan structure and strategy of the investigation process that

sets out to obtain answer to study. The methodology followed for the collection information

are using two sources of the data namely.

Primary data

The primary data will be collected through the following sources.

Questionnaire

Personal interview.



Secondary data

The Secondary data will be collected through the following sources

Company manual reports.

Company web address

Area of research: ILKAL TOWN

Sample

Sample is the part of population which is used to get information to survey

Sample plan: personal interview, Questionnaire

Sample unit: Individual Customer and Company

Sampling method: Random sampling.

Sample size: 100

Project duration: 8weeks.

Major findings:

The customer awareness level towards HHPP is excellent because nearly 87% of the

respondents were aware of this program.

From the aware respondents 79% of respondents had taken the membership under this

program. This shows program is effectively reaching the customers.

The customer awareness level about the advantages of the program is good, but there

is still scope for improvement.



Conclusion:

1. Most of the respondents are satisfied with the HHPP at Basaveshwar Motors .

2. Nearly 90% of the respondents are aware about the HHPP.

3. From the survey it is cleared that most of the customers say that HHPP service

provided by Basaveshwar Motors is at satisfactory level.

Recommendation:

The Dealers should provide separate counter for HHPP to the customer at showroom.

According to the respondents surveyed I found that most of the respondents

get their bike service from the authorized service stations and few of respondents are

still unaware of HHPP so the company should concentrate on this customers with

respect to there genuine service providing to its customers.

Less number of customer receive gift from this program but dealer should give

attractive and useful gift give to customer.

Limitations

Sample size is limited to number of customers

Since sample size is limited, hence it may not represent the entire population of the

Ilkal town.

The response of customers is assumed to be true.



CHAPTER.2



INDUSTRY PROFILE

HISTORY

India has the largest number of two wheelers in the world with 41.6 million vehicles. India

has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was

the second largest two wheeler manufacturer in the world starting in the 1950’s with the birth

of Automobile Products of India (API) that manufactured scooters. API manufactured the

Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the

turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The

license raj that existed between the1940s to1980s in India, did not allow foreign companies

to enter the market and imports were tightly controlled. This regulatory maze, before the

economic liberalization, made business easier for local players to have a seller’s market.

Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of

Bajaj commented that he did not need a marketing department, only a dispatch department.

By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for

scooters. The motorcycle segment had the same long wait times with three manufacturers;

Royal Enield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-

stroke engine at that time and took the higher end of the market but, there was little

competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the

market respectively. In the mid-1980s, the Indian government regulations changed and

permitted foreign companies to enter the Indian market through minority joint ventures. The

two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS



Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed

the Indian market

dynamics from the supply side to the demand side. With a larger selection of two-wheelers

on the Indian market, consumers started to gain influence over the products they bought and

raised higher customer expectations. The industry produced more models, styling options,

prices, and different fuel efficiencies. The foreign companies new technologies helped make

the products more reliable and with better quality. Indian companies had to change to keep

up with their global counterparts.

Hero Honda Motorcycle Ltd.

Type Public company BSE:HEROHONDA M

Founded January 19, 1984

Location India

Key people Brijmohan Lal Munjal (Chairman and Managing Director)

Industry Automotive

Products Motorcycles, Scooters

Revenue 7,536 crores Rs 2007-2008

Website www.herohonda.com


http://www.herohonda.com/site/home/home.asp

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/India

http://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Category:Types_of_companies

http://en.wikipedia.org/wiki/Image:HeroHonda.gif

http://en.wikipedia.org/wiki/Image:Green_up.png


Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters.

Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda

from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles

since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor

is the world's top selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in

Haryana, India. It specializes in dual use motorcycles that are underpowered and very fuel

efficient

Company Profile:

“Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship

company Hero Cycles. The two-wheeler manufacturing business of bicycle components had

originally started in the 1940’s and turned into the world’s largest bicycle manufacturer

today. Hero is a name synonymous with two-wheelers in India today. The Munjals roll their

own steel, make free wheel bicycle critical components and have diversified into different

ventures like product design. The Hero Group philosophy is: “To provide excellent

transportation to the common man at easily affordable prices and to provide total satisfaction

in all its spheres of activity”. The Hero group vision is to build long lasting relationships with

everyone (customers, workers, dealers and vendors). The Hero Group has a passion for

setting higher standards and “Engineering Satisfaction” is the prime motivation, way of life

and work culture of the Group. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman

and Managing Director of Hero Honda Motors (HHM), headed an alliance between the

Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: “We, at


http://en.wikipedia.org/wiki/Haryana

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Honda


Hero Honda, are continuously striving for synergy between technology, systems, and human

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

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

societal responsibilities, constantly innovate products and processes, and develop teams that

keep the momentum going to take the company to excellence in the new millennium”. This

alliance became one of the most successful joint ventures in India, until the year 1999 when

HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This

announcement caused the HHM stock price to decrease by 30 percent that same day. Munjal

had to come up with some new strategic decisions as, HMSI and other foreign new entry

companies were causing increased intensity of rivalry for HHM.

Back Ground:

India has the largest number of two wheelers in the world with 41.6 million vehicles. India

has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was

the second largest two wheeler manufacturer in the world starting in the 1950’s with the birth

of Automobile Products of India (API) that manufactured scooters. API manufactured the

Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the

turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The

license raj that existed between the1940s to1980s in India, did not allow foreign companies

to enter the market and imports were tightly controlled. This regulatory maze, before the

economic liberalization, made business easier for local players to have a seller’s market.

Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of



Bajaj commented that he did not need a marketing department, only a dispatch department.

By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for

scooters. The motorcycle segment had the same long wait times with three manufacturers;

Royal Enield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-

stroke engine at that time and took the higher end of the market but, there was little

competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the

market respectively. In the mid-1980s, the Indian government regulations changed and

permitted foreign companies to enter the Indian market through minority joint ventures. The

two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed

the Indian market dynamics from the supply side to the demand side. With a larger selection

of two-wheelers on the Indian market, consumers started to gain influence over the products

they bought and raised higher customer expectations. The industry produced more models,

styling options, prices, and different fuel efficiencies. The foreign companies new

technologies helped make the products more reliable and with better quality. Indian

companies had to change to keep up with their global counterparts.

BUSINESS GROWTH

The business growth of Hero Honda has been phenomenal throughout its early days. The

Munjal family started a modest business of bicycle components. Hero Group expanded so big

that by 2008 they had sold 110 million bicycles producing 16000 bicycles a day. Today Hero

Honda has an assembly line of 9 different models of motorcycles available. It holds the



record for most popular bike in the world by sales for Its Splendor model. Hero Honda

Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to

manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world.

The Hero Group has done business differently right from the start and that is what has helped

them to achieve break-through in the competitive two-wheeler market. The Group's low key,

but focused, style of management has earned the company plaudits amidst investors,

employees, vendors and dealers, as also worldwide recognition. The growth of the Group

through the years has been influenced by a number of factors: Just-in-Time The Hero Group

through the Hero Cycles Division was the first to introduce the concept of just-in-time

inventory. The Group boasts of superb operational efficiencies. Every assembly line worker

operates two machines simultaneously to save time and improve productivity. The fact that

most of the machines are either developed or fabricated in-house, has resulted in low

inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been

working since the beginning of production in the unit and is functional even till date. This is

the Japanese style of production and in India; Hero is probably the only company to have

mastered the art of the just-in-time inventory principle.

Dealer Network:

The relationship of Hero Group with their dealers is unique in its closeness. The dealers are

considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000

outlets, and have a formidable distribution system in place. Sales agents from Hero travels to

all the corners of the country, visiting dealers and send back daily postcards with information

on the stock position that day, turnover, fresh purchases, anticipated demand and also



competitor action in the region. The manufacturing units have a separate department to

handle dealer complaints and problems and the first response is always given in 24 hours.

Financial Planning :

The Hero Group benefits from the Group Chairman's financial acumen and his grasp on

technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of

the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is

on financial and raw material management and a low employee turnover. Quality: Quality at

Hero is attained not just by modern plants and equipment and through latest technology, but

by enforcing a strict discipline. At the Group factories, attaining quality standards is an

everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest

technology with deep-rooted experience derived from nearly four decades of hard labor. It is

an attitude that masters the challenge of growth and change - change in consumers'

perceptions about products and new aspirations arising from a new generation of buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream and

maintains its competitive edge. With each of its foreign collaborations, the Group goes onto

Strengthen its quality measures as per the book. The Group also employs the services of

independent experts from around the world to assist in new design and production processes.

Diversification:

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked

at diversification. A considerable level of backward integration in its manufacturing activities



has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold

Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal

Showa Limited amongst other component-manufacturing units. Then there were the

expansion into the automotive segment with the setting up of Majestic Auto Limited, where

the first indigenously designed moped, Hero Majestic, went into commercial production in

1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global

technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in

1984 to manufacture 1000 cc motorcycles. The Hero Group also took a venture into other

segments like exports, financial services, information technology, which includes customer

response services and software development. Further expansion is expected in the areas of

Insurance and Telecommunication.

The Hero Group's phenomenal growth is the result of constant innovations, a close watch on

costs and the dynamic leadership of the Group Chairman, characterized by an culture of

entrepreneurship, of right attitudes and building stronger relationships with investors,

partners, vendors and dealers and customers.

SALES PERFORMANCE

Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership

in the Indian two-wheeler industry, registering impressive growth in sales in the year 2008 –

09.

For the year ending March 2009, the company achieved cumulative sales of 9,39,682 units.

During the corresponding period last Financial Year, the company had recorded sales of

8,86,574 units in the year ending March 2008.



An Environmentally and Socially, Aware Company

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the

way in making your world a better place to live in. Besides its will to provide a high-quality

service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise

respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programs

but also expresses the increasingly inseparable balance between the economic concerns and

the environmental and social issues faced by a business: businesses must not grow at the

expense of mankind and man's future but rather must serve mankind.

"We must do something for the community from whose land we generate our wealth."

A famous quote of Mr.Brijmohan Lall Munjal, CMD.

Mission Statement:

“We, at Hero are continuously for synergy between technology, systems, and human

resources to provide products and services that the quality, performance, and price

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

societal responsibilities, constantly innovate products and processes, and develop teams that

keep the momentum going to take the company to excellence in the new millennium”.



Board of Directors:

Chairman: Mr. Brijmohan Lall Munjal

Managing Director: Mr. Pawan Munjal

Joint Managing Director Mr. Miki Yamamoto

Director Mr. Satyanand Munjal

Director Mr. Om Prakash Munjal

Director Mr. Satoshi Toshida

Director Mr. Koji Nakazono

Director Mr. S P Virmani

Director Mr. N N Vohra

Director Mr. Pradeep Dinodia

Director Gen. (Retd.) V P Malik

Director Mr. Analjit Singh

Director Dr. Pritam Singh

Director Dr. Basaveshwar Laxman Kelkar

Director Ms. Shobhana Bharlia



Milestones of Hero Honda Company

1984: Company Incorporated Technical collaboration signed Foundation stone laid.

1985: First motorcycle (Model CD 100) produced 200 motorcycles per day production.

1986: Quality circles launched.

1987: Engine plant stated 1,00,000th Motorcycle produced.

1988: Hero Honda Family club formed at Gurgaon 200,000th motorcycle produced.

1989: Sleek model Introduced 300,000th Motorcycle produced.

1990: 400,000th Motorcycle produced Pegasus Award from Digest for campaigning ‘One

Liter Road’

1994: Splendor model introduced 10,00,000th motorcycle produced.

1995: National Award for Outstanding contribution to the Development of Indain Scale

Industry (NSIC Award presented by president of India)

1996: Hero Honda becomes first company to serve Army, Navy & Air Force with its 100cc

motorcycles 1000 motorcycles per day production stated.

1999: Best productivity Award for the best performance in Automobile & Tractor Sector by

National Productivity council presented by Vice President of India.

2000: Splendor declared world No. one largest selling signal two wheeler model. Passport

Program – Customer Relation Program launched

2001: Winner of the Review 200- Asia’s Leading Companies Award (9th Rank amongst top

10 Indian Companies) passion model launched Achieved OM – One million production in

one single year.



2002: Winner of the Review 200- Asia’s Leading Companies Award (4th Rank amongst top

10 Indian Companies)

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

10 Indian Companies)

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.

2005: New motorcycle model - "Super Splendor" introduced,New motorcycle model - "CD

Deluxe" introduced, New motorcycle model - "Glamour" introduced,New motorcycle model -

"Achiever" introduced



ORGANISATION PROFILE OF ILKAL

Hero Honda Motorcycle Ltd.

Dealer Name Basaveshwar Motors Ilkal

Started Jan 2009

Location Ilkal

Key people B.Maratad

Industry Automotive

Products Motorcycles

Sales 891 units -2009

Owner Iranna B Maratada


http://en.wikipedia.org/wiki/Image:HeroHonda.gif

http://en.wikipedia.org/wiki/Image:Green_up.png


PRODUCT PROFILE

Following are the products of Hero Honda:

1. Splendor+

2. Karizma

3. CBZ

4. Ambition 135

5. Passion +

6. CD-Dawn

7. Pleasure

8. Super Splendor

9. Glamour

10. CD Deluxe

11. Achiever

12. Glamour FI

13. CD100SS

Hero Honda CD-dawn Hero Honda CD-Deluxe Hero Honda Splendor Plus


http://www.herohonda.com/site/products/index.asp?Sec=CD100SS

http://www.herohonda.com/glamournew/


Hero Honda Splendor NXG Hero Honda Passion Plus Hero Honda Pleasure

Hero Honda Super Splendor Hero Honda Glamour Hero Honda Achiever

Hero Honda CBZ Xtreme Hero Honda Hunk Hero Honda Karizma



BUSINESS GROWTH

The business growth of Hero Honda has been phenomenal throughout its early days. The

Munjal family started a modest business of bicycle components. Hero Group expanded so big

that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero

Honda has an assembly line of 9 different models of motorcycles available. It holds the

record for most popular bike in the world by sales for Its Splendor model. Hero Honda

Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to

manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world.

It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter

manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done

business differently right from the start and that is what has helped them to achieve break-

through in the competitive two-wheeler market. The Group's low key, but focused, style of

management has earned the company plaudits amidst investors, employees, vendors and

dealers, as also worldwide recognition. The growth of the Group through the years has been

influenced by a number of factors: Just-in-Time The Hero Group through the Hero Cycles

Division was the first to introduce the concept of just-in-time inventory. The Group boasts of

superb operational efficiencies. Every assembly line

worker operates two machines simultaneously to save time and improve productivity. The

fact that most of the machines are either developed or fabricated in-house, has resulted in low

inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been

working since the beginning of production in the unit and is functional even till date.. This is



the Japanese style of production and in India; Hero is probably the only company to have

mastered the art of the just-in-time inventory principle. Ancillarisation:

An integral part of the Group strategy of doing business differently was providing support to

ancillary units. There are over 300 ancillary units today, whose production is dedicated to

Hero's requirements and also a large number of other vendors, which include some of the

better known companies in the automotive segment. Employee Policy:

Another Striking feature within the Hero Group is the commitment and dedication of its

workers. There is no organized labor union and family members of employees find ready

employment within Hero. The philosophy with regard to labor management is "Hero is

growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for

providing facilities, further ahead of the industry norms. Long before other companies did so,

Hero was giving its employees a uniform allowance, as well as House Rent Allowance

(HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical check-

ups, not just for workers, but also for the immediate family members. Dealer Network:

The relationship of Hero Group with their dealers is unique in its closeness. The dealers are

considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000

outlets, and have a formidable distribution system in place. Sales agents from

Hero travels to all the corners of the country, visiting dealers and send back daily postcards

with information on the stock position that day, turnover, fresh purchases, anticipated

demand and also competitor action in the region. The manufacturing units have a separate

department to handle dealer complaints and problems and the first response is always given

in 24 hours. Financial Planning:



The Hero Group benefits from the Group Chairman's financial acumen and his grasp on

technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of

the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is

on financial and raw material management and a low employee turnover. Quality: Quality at

Hero is attained not just by modern plants and equipment and through latest technology, but

by enforcing a strict discipline. At the Group factories, attaining quality standards is an

everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest

technology with deep-rooted experience derived from nearly four decades of hard labor. It is

an attitude that masters the challenge of growth and change - change in consumers'

perceptions about products and new aspirations arising from a new generation of buyers.

Constant technology up gradation ensures that the Group stays in the global mainstream and

maintains its competitive edge. With each of its foreign collaborations, the Group goes onto

strengthen its quality measures as per the book. The Group also employs the services of

independent experts from around the world to assist in new design and production processes.

Diversification:

Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked

at diversification. A considerable level of backward integration in its manufacturing activities

has been ample in the Group's growth and led to the

establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings,

Munjal Auto Components and Munjal Showa Limited amongst other component-

manufacturing units. Then there were the expansion into the automotive segment with the

setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero



Majestic, went into commercial production in 1978. Then came Hero Motors which

introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of

Austria. Hero Honda Motors was established in 1984 to manufacture 1000 cc motorcycles.

The Hero Group also took a venture into other segments like exports, financial services,

information technology, which includes customer response services and software

development. Further expansion is expected in the areas of Insurance and

Telecommunication.

The Hero Group's phenomenal growth is the result of constant innovations, a close watch on

costs and the dynamic leadership of the Group Chairman, characterized by an culture of

entrepreneurship, of right attitudes and building stronger relationships with investors,

partners, vendors and dealers and customers.



SALES PERFORMANCE

Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership

in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter

of the FY 2006 – 07.

For the quarter ending June 2006, the company achieved cumulative sales of 8,32,692 units,

recording a growth of 21.29% compared to the same period last year. During the

corresponding period last Financial Year, the company had recorded sales of 6,86,494 units

in the first quarter ending June 2005.

In June 2006, the company sold 2,78,660 units registering an impressive growth of 23.26%

as against 2,26,073 units in June last year.

During the month, Hero Honda launched Glamour FI - India’s first Fuel Injection

motorcycle. The new technology eliminates the need for a carburetor, offers the most

comfortable drive and the lowest emissions, in addition to a host of other features, which is

now available for the first time to Indian two-wheeler riders.

An Environmentally and Socially, Aware Company

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the

way in making your world a better place to live in. Besides its will to provide a high-quality

service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise

respectful of its environment and respectful of the important issues.



Hero Honda has been strongly committed not only to environmental conservation

programmes but also expresses the increasingly inseparable balance between the economic

concerns and the environmental and social issues faced by a business: businesses must not

grow at the expense of mankind and man's future but rather must servemankind.

"We must do something for the community from whose land we generate our wealth." A

famous quote of Mr.Brijmohan Lall Munjal, CMD.



ORGANISATION CHART

WORK ALLOCATION CHART


Chair person (Basaveshwar Motors)

General Manager

Accounts Department

Spare Part Department

Sales Department Servicing Department

Head Mechanics

Work supervisor

Work Manager

Mechanics

Sales Executives


Departmental Study:


Work Manager

Team A

Washing Supervisor

Computer OperatorPassport program

in chargeService Follow-up (post service follow-up)

Warranty In charge

Work Shop Supervisor

Delivery Supervisor

Front Officer Supervisor

Team B

Name

Name

Name

Team C


ORGNISATION DEPARTMENTS

Sales Department

Service & repair Department

Delivery Department

RTO work Department

Spare part Department

Account & Billing Department

SALES DEPARTMENT: In this department all the matters regarding sales& purchases are handled. Here sales

executive meet the customer & brief them with the all the details required information .

Here sales executive gives quotations, brief description about the required bike model.



SERVICE & REPAIR DEPARTMENT

Work Manager

In this department all the matters regarding service & repair are taken care. This department

is well structured work supervisor address the problem & gives the customer delivery time

then he passes the work slip to head mechanic. Then head mechanics distributes the work

with the mechanics teams. And problem salving process is carried out.


Work Supervisor

Head Mechanics

M/CCM/CC

M/C M/C M/C


MAINTENANCE SCHEDULES:

Proper care & maintenance are paramount for trouble free operation & optimum performance

of motorcycle. Hero Honda offers 6 free services on all its motorcycles. It should avail these

services within a year or as per the below mentioned km rang, whichever is earlier.

First Free Service 500-750 km

Second Free Service 2500-2800 km

Third Free Service 5000-5500 km

Fourth Free Service 7000-7500 km

Fifth Free Service 9000-9500 km

Sixth Free Service 11000-11500 km

Delivery Section:



In this section delivery of new bikes are given to the customers. Here order is received by

delivery section in charge were he cross checks the document produced by the customer then

he gives the keys of the bike to the customer.

Here customer can have test ride of bikes & can select the bike.

RTO work department:

In this department all the matters regarding issuing of temporary registration, temporary

insurance, temporary passing of new bikes are handled. All the necessary paper work

required for temporary passing is handled in this department.

Spare parts department:

In this department spare part required by mechanics are stored. And issued on requirement of

the mechanics when necessary.

In this department large stock of Hero Honda spare parts are stored to avoid customer

inconvenience.

Account & Billing department:

In this department the matters regarding all accounts are registered i.e. all day-to day

transactions & final report is produced at the end of the financial year to the management.



INTRODUCTION TO HERO HONDA PASSPORT PROGRAM (HHPP)

HHPP was the program launched by the Hero Honda Company in year 2000 on the

declaration of Splendor as world No.1 Largest selling single two wheeler model.

HHPP is program launched by the company to build long tram business relation with

customers. It is basically a “Customer relationship Programme” instituted especially for Hero

Honda customers.

It is also program to motivate the customers to use original Hero Honda spare parts from

authorized dealers & also avail the service from authorized dealers.

What is the Hero Honda Passport Programme

The Hero Honda Passport Programme is a Customer Relationship Programme instituted

specially for customer and dealers. Upon enrolling for the Programme, customer obtain a

Hero Honda Passport, which entitles customer to a host of benefits, privileges and exclusive

rewards. What's more, customer also become eligible for the Hero Honda 'Winners of the

Month', which could win you a Hero Honda Splendor+, or a cash prize of Rs. 40.000!



Who is eligible for the Hero Honda Passport?

Any Hero Honda motorcycle owner or user is eligible for the Hero Honda Passport. However, it is the actual user of the motorcycle, who derives maximum benefits from it.

How to apply for the Hero Honda Passport?

Fill-in the Hero Honda Passport Application Form available all Hero Honda

authorized dealerships/workshops.

Pay requisite enrolment fee, and attach two passport-sized photographs with

the application form.

Your personalized Hero Honda Passport will be processed and delivered to

you by your dealer, within 4 weeks of applying.

What is the Hero Honda Passport?

The Hero Honda Passport is a personal identification document that would carry

details such as your photograph, name, address and signature.

This document certifies your membership to the Hero Honda Passport Programme.

The Hero Honda Passport opens the door to a host of special offers that Hero

Honda Motors Limited has in store for you including attractive gifts, special

invitations and discounts. The Hero Honda Passport is valid for a period of 3 years.



Benefits of owning a Hero Honda passport Some of 1 he benefits are:

• Instant Benefits

- A one-year or three year Free Accident. Insurance cover worth Rs 1 lakh.

- Opportunity to participate in a national draw and win Rs 40,000 in

cash or Splendor+

• Bike Related Benefits

- Attractive gifts on reaching specific milestones.

- A Special gift on your first transaction with a Hero Honda dealership or an authorized

service centre

-Opportunity to get a Bike service certificate that may increase the resale value of your

bike.

- A special 5% discount on the purchase of spares*

• Lifestyle Related Benefits:

- Chance to be invited to events such as movie shows, musical nights and carnivals.

- Exclusive discount offers from other brands of your interest.



How to use the Hero Honda Passport?

You need to carry your Hero Honda Passport with you when you visit a

Hero Honda authorized dealership/workshop.

Every time you do a transaction at a Hero Honda showroom /workshop, the dealer

would reward points into your passport. You are eligible to accumulate points, against

purchase of spares, accessories, service and by referring friends to purchase a Hero

Honda motorcycle.

You can win several gifts as you accumulate points swiftly.

Also, your points do not become zero after a gift collection and you can

keep collecting gifts as you reach a particular milestone.



CUSTOMER DRIVES 3 KINDS SERVICES:

Before sales service i.e. providing needed information to the buyer about the product service

at the time of sales: when selling process takes place, the company should take care about the

quick and delivery, installation etc.

After sales service when sales have been some to the customer, the company should think the

customer is part of the family. So attending any emergency repair or any kind of service

required should be met immediately so as to retain the customer

QUALITY:

It is a totally of features and characteristics of a product or service that bare on its ability to

satisfy stated or implied needs.

We can say that the seller has delivered quality whenever the sellers product or service

meets or exceeds the customer expectations.

DISTRICUTION EFECIENCY:

Management needs to search for distribution economies in inventory control, warehouse

locations and transportations modes. One problems that distribution efficiency declines when

the company experiences the strong sales increases. It may causes in meeting delivery dates.

This leads customers to badmouth the company eventually ales fall.



Customer Awareness

The act of creating public awareness of a specific product / service in order to

maximize its recognition, successful awareness strategies should define a company’s

uniqueness and set it apart from competition. Quite simply, if potential customers do not

know about a company they will not purchase from it. Therefore, one of the preeminent goals

of any business should be to create awareness regarding their product or service, albeit in as

cost-effective manner as possible.

Consumer’s tent to make purchasing decisions based on peer recommendations and

direct experience, as well as traditional advertising method. This is why it is necessary to

create awareness strategies out by instilling trust among consumers. This trust must be

achieved through credibility rather than just a catchy advertising campaign. Promotional

marketing involving one to one component proving increasingly effective at building trust

and acquiring new customers.

Customer awareness is mainly depends on strategies used by promotional

manager. An effective promotional method has to be used to make customer aware of the

product or service.

The intention of the advertising is to spread awareness of the product/service and

advertising plays vital role in the creating awareness of the product or services



RESEARCH DESIGN

Steps in Research design

Define the research problem

Estimate the value of Information

Select the data collection method

Select the measurement technique

Select the sample

Select the analytical approach

Evaluate the ethics of the research

Specify time & financial cost

Prepare the research proposal



Step 1: Define the research problem

To know the awareness level & effectiveness & response towards HHPP.

Management problem / opportunity clarification Hero Honda company wants to make HHPP

more effective, so company want to know the present performance of this program.

Step 2: Estimate the value of the information:

The value of information should exceed the expected cost. I am conducting the sample

survey method, & my sample size for my research is 100 its member.

Step 3: Select the data collection method;

I decided to go for survey method i.e. simple random sample using the questionnaire

conducting the survey & using Dichotomous (close-ended), rating scale & open-ended

questions.

Step 4: Select the measurement technique

Descriptive type of research, using the questionnaire with rating scale, open & close-ended

questions.



Step 5: Select the sample

The sample would be the customers of Hero Honda motorcycle within Ilkal town

Step 6: Select the analytical approach:

Analyzing the collected information with the help SPSS software.

Step 7: Evaluate the ethics of the research

The collected information (data) will be used for salving the management problem & not for

any non-ethical objectives will be addressed.

Step 8: Specify time & financial cost:

Time needed is 60 days & the financial cost are;

Daily expenses about 15/- per 90 days it is about 1350 = 1350/-

Stationary & printing about 600/- total financial cost = 1350+800 =2150/-



Step 9: Prepare the Research proposal:

My understanding of this project is as follows:

Background:-

HHPP is a program launched by the Hero Honda to build long term relation with customers

& to promote sales of spares & services from authorized dealer. Now company wants to

make this program more effective. So company wants to know present performance of this

program.

Purpose:

The main objective is to know the awareness & effectiveness of Hero Honda passport

program.

Research approach:

A non-technical description of data collection method i.e. sample survey that includes

customers of Hero Honda in Ilkal.



CHAPTER.3



Objectives:

To gain familiarity with a phenomenon, event, product or service.

To determine the frequency with something occurs or with it is associated with

something else.

To test the hypothesis of casual relationship between variables.

To understand the requirement of market and formulate strategies as per the

requirements.

Scope:

The main purpose of the study is to know the customer awareness, effectiveness. The

study is conducted in Ilkal town. This study helps the company to know the effectiveness

of this program in Ilkal town at Basveshwar Motors.

Methodology: The methodology is the plan structure and strategy of the investigation process that

sets out to obtain answer to study. The methodology followed for the collection information

are using two sources of the data namely.

Primary data

The primary data will be collected through the following sources.

Questionnaire

Personal interview.



Secondary data

The Secondary data will be collected through the following sources

Company manual reports.

Company web address

Area of research: ILKAL TOWN

Sample

Sample is the part of population which is used to get information to survey

Sample plan: personal interview, Questionnaire

Sample unit: Individual Customer and Company

Sampling method: Random sampling.

Sample size: 100

Project duration: 8weeks.



CHAPTER.4



Table-1

1) Which Hero Honda motorcycle do you have? Please specify

Models Respondent Percentage (%)Splendor Plus 17 17%Passion Plus 19 19%Splendor 22 22%Super Splendor 14 14%C D Deluxe 9 09%Other 19 19%Total 100 100

Interpretation: From the above graph it reveals that 22% of the respondents are splendor

Users, 19% are passion plus users, 17% are splendor plus users, 14% of respondents are

Super splendor users & 19% of respondents are users of other Hero Honda models.


Graph-1

17%

19%

22%

14%

9%

19%

Splendor Plus

Passion Plus

Splendor

Super Splendor

C D Delux

Other


Table-2

2) Are you aware of Hero Honda passport program?

Option Respondent Percentage(% )

Yes 90 90

No 10 10

Total 100 100

Interpretation: from the above graph it reveals that from 100 respondent 90% of the

respondent were aware of the HHPP & 10% are not aware of HHPP.


Graph-2

90%

10%

Yes

No


Table-3

3) Are you a member of Hero Honda passport program?Option Respondent Percentage(% )

Yes 79 79No 21 21

Total 100 100


Graph-3

79%

21%

Yes

No


Interpretation : From the above graph it reveals that from 100 respondents 79% of the

respondents were the members of HHPP & 21% of the respondents were not the member of

HHPP.

Table-4

4) If yes, are you aware of advantages (gifts and benefits) of Hero Honda passport Program?

Option Respondent Percentage (%)Yes 51 64No 11 14

Not Exactly 17 22Total 29 100


Graph-4

64%14%

22%

YesNoNot exactly


Interpretation: Form the above graph it reveals that from 79 respondent 64% of the

respondents were aware of the advantages of Hero Honda Passport Program, 14% were not

aware of the Hero Honda Passport Program & 22% were aware but not completely.

Table-5

5) Under which passport program you have registered.

Plans Respondent Percentage (%)

125 19 24

175 60 76

TOTAL 79 100


Graph-5

24%

76%

Rs125

Rs175


Interpretation: From the above graph it reveals that out of 79 respondent 24% of the

respondents had registered under Rs.125 plan program & 76% of respondents had registered

under Rs.175 plan program



Table-6

6) How many times you have received gifts from this program on your points.

Gifts received Respondent Percentage (%)Zero 39 50

Less three times 28 35

four times 9 11

More then four times 3 4

Total 79 100


respondents have not received the gifts, 35% have received the gifts for less than 3 times,

11% of the respondents have received the gift for 4 times & 4% of the respondents have

received gifts for more then 4 times.


Graph-6

50%

35%

11%4%

Zero

Less than 3 times

4 times

More than 4 times


Table-7

7) Are you satisfied with the advantages (gift or benefit) for your purchase of spares or service under this program?

Satisfaction Level Respondent Percentage (%)Strongly Satisfied 29 37

Satisfied 33 41Nether Satisfied nor Dissatisfied 06 08

Not Satisfied 11 14Total 100 100


respondents were strongly satisfied with the advantages for the purchase of spare parts and

services, 41% of the respondents were just satisfied with the advantages, 8% were neither

satisfied nor dissatisfied, 14% were not satisfied with the advantages of the program for their

purchases of spare and services from authorized dealer.


Graph-7

37%

41%

14%

8%

Strongly satisfied

Satisfied

Not satisfied

neither satisfied nordissatisfied


Table-8

8) Are you aware of Insurance scheme in Hero Honda passport program?

Option Respondent Percentage (%)

Yes 59 75

No 20 25

Total 79 100


respondents were aware of the insurance scheme & 25% of the respondents were not aware

of the insurance scheme in Hero Honda Passport Program.


Graph-8

75%

25%

Yes

No


Table-9

9) Do, you feel program works according to its promises.

Option Respondent Percentage (%)

Yes 49 62

No 18 23

Not exactly 12 15

Total 79 100


respondents feel program works according to its promises 23% of respondents program does

not work according to its promises and 23% of respondent feel program works but not

exactly according to its promises.


Graph-9

62%

23%

15%

Yes

No

Not exactly


Table-10

10) Dose this program influence you to go for repeated purchase of spares & services from Hero Honda authorized dealers.

Influence level Respondent Percentage(%)Strongly influence 17 22

Influence 46 58

Neither influence nor not influence 11 14

Not influence 05 06

Total 79 100


respondents are strongly influenced by this program in their purchase of spares and services,

58% of respondent are just influenced by this program, 14% of respondent are neither

influenced nor not influenced and 6% of respondents are strongly not influenced by the

program in their purchase of spare parts and services.


Graph-10

22%

58%

14%

6%

Strongly Influences

Influences

neither influences nor notinfluences

Not influences


Table-11

11) What is your overall rating of this program?

Attitude Respondent Percentage (%)Excellent 33 42

Good 36 45 Bad 10 13Total 79 100


respondents said program is excellent, 45% of respondents said program is good & 13% of

respondents said program is bad


Graph-11

42%

45%

13%

Excellent

Good

Bad


Table-12

12) Are you satisfied with the service of basaveshwar motors under passport program?

Option Respondent percentage %Yes 61 78No 09 11

Some what 09 11Total 79 100

Graph-12

78%

11%

11%

Yes

NoSome what


respondents are satisfied with the basaveshwar Motors service provided in Hero Honda

Passport Program and 11% of respondents are not satisfied with the service proved by the

Basaveshwar Motors and 11% of respondents are somewhat satisfied with the service

provided by Basaveshwar Motors in Hero Honda Passport Program.



13) Reasons behind not being aware of the Hero Honda Passport Program.

Respondents were not interested in scheme and offers.

Respondents did not come across any advertisement of Hero Honda Passport

Program.

Hero Honda Passport Program was not communicated to them by Basaveshwar

Motors.

14) Reasons behind aware but not being the member of the Hero Honda Passport Program.

Respondents were not interested in Hero Honda Passport Program.

Respondents’ bikes were old so they were not interested in Hero Honda Passport

Program.

*********************



FINDINGS

Project Finding:

The customer awareness level towards HHPP is excellent because nearly 87% of the

respondents were aware of this program.

From the aware respondents 79% of respondents had taken the membership under this

program. This shows program is effectively reaching the customers.

The customer awareness level about the advantages of the program is good, but there

is still scope for improvement.

Major of the respondent have registered under Rs.175 plan that is 78% of respondent

have registered under 175 plan. This shows that company will be contact with 78%

customers for 3 years. This will help in building good relation with the customers.

Major of the customers are using this program because 43% of respondents have

received the gifts for more then 4 time, 27% of respondent have received the gift for 4

times on this collected pts this means every member has done the purchase of at list

Rs.2000 from the authorized dealers. But this is still scope for improvement. This

shows effectiveness of the program.



41% of the respondents are satisfied with the advantage (gift) on this purchase & 37%

of respondent are strongly satisfied. This shows that improvement in gifts returns is

required.

Awareness level regarding Insurance schemes in HHPP is excellent because nearly

75% the respondents are aware of this scheme benefit.

HHPP works according to its promises because 62% respondents said yes it works

according to its promises this also shows the effectiveness of the program.

Customers are influenced by this program to go for repeated purchase of spare parts

& services from authorized dealers of Hero Honda because 46% respondent said is

influence & 17% of respondent said it strongly influence them to go repeated

purchase of spare parts & services from authorized dealers. This show program is

effective in attracting the customers towards Hero Honda authorized dealers.

The attitude towards HHPP is good. Because 45% of respondents program is good &

42% of said program is excellent.



Customers are satisfied with the service provided by Basaveshwar Motors in HHPP.

Because 78% of respondent said they are satisfied with the services provided by

Basaveshwar Motors in HHPP.



SUGGESTIONS & RECOMMENDATION

According to the study conducted, it shows from the analysis and findings that majority

of Customer are satisfied with the HHPP Scheme. So I wish to give the following

recommendations to the management.

The Dealers should provide separate counter for HHPP to the customer at showroom.

According to the respondents surveyed I found that most of the respondents

get their bike service from the authorized service stations and few of respondents are

still unaware of HHPP so the company should concentrate on this customers with

respect to there genuine service providing to its customers.

Less number of customer receive gift from this program but dealer should give

attractive and useful gift give to customer.

HHPP has been able to create good image in the mind of customer.

Though the customer response is good about HHPP but there should be continuous

improvement in the customer care and follow up service.

Effective HHPP service and attaining to complaints of customers immediately will

satisfy them, this satisfaction will act as psychological motivation, indirectly will

reflect to sales of Basaveshwar Motors.



CONCLUSION:

The Basaveshwar Motors is one of the most prompt service center in Ilkal town, it should

give more effective HHPP service to its customers through adopting good relation with

Dealer. The organization should search for the opportunities to grow in competitive world.

1. Most of the respondents are satisfied with the HHPP at Basaveshwar Motors .

2. Nearly 90% of the respondents are aware about the HHPP.

3. From the survey it is cleared that most of the customers say that HHPP service

provided by Basaveshwar Motors is at satisfactory level.

4. Basaveshwar Motors having good reputation in lkal Market.

5. Many customer are aware about HHPP, but they don’t know how to utilize the

Passport service properly.



CHAPTER.5

And



ANNEXURE

QUESTIONNAIRE

Dear Sir /Madam,

1. Which Hero Honda motorcycle do you have? Please specify

-----------------------------------------------

2. Are you aware of Hero Honda passport programme.

Yes No (If No Move to Q. No.14 or else continue)

3. Are you a member of Hero Honda passport programme

Yes No (If No Move to Q. No.14)

4. If yes, are you aware of advantages (gifts and benefits) of Hero Honda passport Program.

Yes No Not exactly

5. Under which passport programme you have registered.

Rs. 125 Rs. 175

6. How many times you have received gifts from this programme on your points.

Zero Less than 3 times

4 times More than 4 times:



7. Are you satisfied with the advantages (gift or benefit) for your purchase of spares or service

under this program.

Strongly satisfied Satisfied Not satisfied

neither satisfied nor dissatisfied strongly dissatisfied

8. Are you aware of Insurance scheme in Hero Honda passport program?

Yes No

9. Do, you feel programme works according to its promises.

Yes No Not Exactly

10. Dose this programme influence you to go for repeated purchase of spares & services from

Hero Honda authorized dealers.

Strongly satisfied influences neither influences nor not influences

Not influences strongly not influences

11. What is your overall rating of this programme

Excellent Good Bad Worst

12. Are you satisfied with the service of Basaveshwar motors under passport programme.

Yes No Some what



13. Your suggestion for improvement of this programme.

………………………………………………………………………………………………..

………………………………………………………………………………………………..

………………………………………………………………………………………………..

………………………………………………………………………………………………..

………………………………………………………………………………………………..

..................................................................................................................................................

………………………………………………………………………………………………..

14. The reasons behind not being aware or member of this programme.

Name:-

Address:-

Gender:-

Occupation:-

Thank you for your Co-operation.



BIBLIOGRAPHY

1. Website

www.google.com

www.herohonda.com

2. Materials

Books.


http://www.herohonda.com/

http://www.google.com/


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6 1 1 2 2 1 3 2 3 2 3 3


A Project Report on Customer awareness and effectiveness of Hero Honda passport program mba

Documents

hero honda company

hero honda motorcycles

awareness effectiveness

hhpp program

flagship company hero

hero group of india

company profile

awareness level of customer