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Page 1: Hero Motocorp

CHAPTER 1

INTRODUCTION

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1. INTRODUCTION

1.1 GENERAL INTRODUCTION TO THE STUDY

Two-Wheeler industry is one of the largest industries in the automobile sector of global

market. Being the leader in product and process technologies in the manufacturing sector,

it has been recognized as one of the drivers of economic growth. During the last decade,

well¬-directed efforts have been made to provide a new look to the automobile policy for

realizing the sector's full potential for the economy. The liberalization policies have led to

continuous increase in competition which has ultimately resulted in modernization in line

with the global standards as well as in substantial cut in prices. Aggressive marketing by

the auto finance companies have also played a significant role in boosting automobile

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

Presently many international brands like Honda, Suzuki, etc. are competing with Indian

brands such as Hero Honda, Bajaj, and T V S, Kinetic etc. to capture Indian markets.

These aggressive marketing strategies have resulted in making the consumer the major

key for success in the industry. Each product offering is now designed to meet and

exceed the expectations of the consumer. But understanding consumer behaviour and

knowing consumers is never simple. And it is more difficult that to understand what a

consumer perceives about the product. Customers may say one thing but do another.

They may not be in touch with their deeper motivations. They may respond to influences

that change their minds at the last moment. Small companies such as a corner grocery

store and huge corporations stand to profit from understanding how and why their

consumers buy.

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1.2 THEORETICAL BACKGROUND OF STUDY

1.2.1. Market

The term market may be considered as a convenient meeting place where buyers and

sellers gather together for the exchange of goods and services. Market means a group of

people having unmet wants, purchasing power to make their demand effective and the

will to spend their income to fulfill those wants. Today a market is equated with the total

demand.

The American marketing association defines a market, ‘as the aggregate demand of

potential buyers for a product or service’.

Under keen competition, a marketer wants to create or capture and retain the market i.e.

customer demand through an appropriate marketing mix offered to a target market. The

market offering i.e. supply must meet customer demand, which are unmet needs and

desires.

1.2.2. Marketing

Marketing is a comprehensive term and it includes all resources and set of activities

necessary to direct and facilitate the flow of goods and services form the producer to the

consumer through the process of distribution. Businessmen regards marketing as a

management function to plan promote and deliver products to the clients or customers.

Human efforts, finance and management constitute the primary resources in marketing.

We have twin activities, which are most significant in marketing:

1. Matching the product with demand i.e. customer needs and desires or the target

market.

2. The transfer of ownership and possession at every stage in the flow of goods from the

primary producer to the ultimate consumer.

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The American marketing association defines marketing as the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods and services

to create exchanges that satisfy individual and organizational objectives.

1.2.6. Marketing Research

Marketing research is the systematic gathering, recording and analyzing of the data about

problems connected to the marketing of goods and services i.e. problems relating to

product, price, promotion and distribution of the 4p’s of the marketing mix.

Marketing research is concerned with all those factors, which have a direct impact upon

the marketing of products and services. Marketing research has grown along with the

expanded role of marketing as the focus for the business decision-making.

Need of marketing research

Marketing research is conducted for different purposes. They are:

1. To estimate the potential market for a new product.

2. To know the reactions of consumers to a product already existing in the market.

3. To find out the general marketing condition and tendencies.

4. To know the types of consumer buying and their buying motives.

5. To know the reactions of failure of a product already in the market.

6. To assess the strength and weakness of competitors.

1.2.7 Customer

A person who purchase or has the capacity to purchase the goods of service often for sale

by the marketing firm in order to satisfy personal need and desires.

1.2.8 Perception

Perception is the sensing of stimuli external to the individual organism the act or process

of comprehending the world in which the individual exists.

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Perception has been defined by social psychologists as the “Complex process” by which

people select organize and interpret sensory stimulation in to a meaningful and coherent

picture of the work.

1.2.11. Major Factors Influencing Consumer Behavior

Consumers buying behavior is influenced by cultural, social, personal and psychological

factors.

1. Cultural Factors

Cultural factors exert the broadest and deepest influence on consumer behavior. The

roles played by the buyers culture, subculture and social class are particularly

important.

o Culture

Culture refers to that complex whole which includes in it knowledge, beliefs, art or

anything man acquires as a member of society.

o Subculture

Each culture consists of smaller subcultures that provide more specific identification

and socialization for their members. Sub cultures include nationalities, religions,

racial groups and geographic regions.

o Social Class

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Virtually all-human societies exhibit social stratification. Stratification sometimes

takes the form of a caste system where the members of different castes are reared for

certain roles and cannot change their caste membership more frequently; stratification

takes the form of social class.

2. Social Factors

o Reference Groups

A persons reference groups consists of all the groups that have a direct or indirect

influence on the person’s attitudes or behavior.

o Family

The family is the most important consumer buying organization in the society and it

constitutes the most influential primary reference group.

o Roles and statuses

A person participates in many groups, family, clubs, organizations etc. The person’s

position in each group can be defined in terms of role and status. A role consists of

the activities that a person is expected to perform. Each role carries a status.

3. Personal Factors

o Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes, furniture

and recreation is all age related.

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Consumption is shaped by the family life cycle. Marketers often choose life-cycle

groups as their target market.

o Occupation and economic circumstances

Occupation also influences a person’s consumption pattern.

Product choice is greatly affected by economic circumstances; spendable income,

savings and assets, debts, borrowing power and attitude toward spending versus

saving.

o Lifestyle

People from the same subculture, social class, and occupation may lead quite

different lifestyles. A lifestyle is the person’s pattern of living in the world expressed

in activities, interest’s ands opinions. Lifestyle portrays the world person interacting

with his or her environment.

o Personality and self concept

Each person has a distinct personality that influences buying behavior. It is that

distinguishing psychological characteristics that lead to relatively consistent and

enduring responses to environment. Related to personality is self-concept or self

image. Marketers try to develop brand images that match target markets self image.

4. Psychological Factors

o Motivation

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A person has many needs at a given time. A need becomes a motive when it is

aroused to a sufficient level of intensity. A motive is a need that is sufficiently

pressing to drive the person to act.

o Perception

Perception is the process by which an individual selects, organizes and interprets

information inputs to create a meaningful picture of the world. How a, motivated

person actually acts is influenced by his or her perceptions of the situation.

o Learning

When people act they learn. Learning involves changes in an individual’s behavior

arising from experience. Learning theory teaches marketers that they can build up

demand for a product by associating it with strong drives, using motivating cues and

positive reinforcement.

o Beliefs and attitudes

Through doing and learning, people acquire beliefs and attitudes. These in turn

influence buying behavior. A belief is a descriptive thought that a person holds about

something. The beliefs make up product and brand images and people act on these

images.

An attitude is a person enduring favorable or unfavorable evaluations, emotion

feelings and action tendencies toward some object or idea. Thus a company would be

well advised to fit product into existing attitudes rather than try and change people’s

attitudes.

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1.3 Objectives of the Study

1) To analyze consumer perception towards Hero Honda motor bikes

2) To get feed back on what consumer expects from Hero Honda

3) To analyze consumer perception towards services offered by Hero Honda and

performance of the motor cycle

4) Develop skills in report writing through data collection, data analysis, data

extraction, and presentation.

1.4 Scope of the study

The study helps in having an awareness of customer satisfaction towards “Hero

Honda”. As the product had a good reputation in the market, this study will help to know

that how Hero Honda lost their grip in motor bike industry. It also helps us to increase

our practical knowledge towards marketing of a company.Marketing is taken as the

functional area as the customer satisfaction is to be taken into account.

1.5 Company Profile

Hero Motocorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.

In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family.

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During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built.

The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 13th position among the brands in India.

Product range

Sleek Street Achiever Ambition 133, Ambition 135 CBZ, CBZ Star, CBZ Xtreme CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Karizma, Karizma R, Karizma ZMR FI Passion, Passion Plus, Passion Pro Pleasure Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor

NXG,Splendor PRO Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's first

off-road and on road Bike.

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CHAPTER 2

RESEARCH DESIGN

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2. RESEARCH DESIGN

2.1 Introduction

The two wheeler industry in India collectively produces 20 Lakh vehicles a year.

Some players have managed to cut through consumer resistance with innovation, pricing

and aggressive marketing. The competition level in the two wheeler industry is very high

now. Many brands are fighting in the market for maximum share. They have to bring out

a lot of differentiation among them. The major duty of the marketer is to know the

reasons for preferring particular motor bike by the consumers.

2.2 Review of Literature

The Customer Perception Report includes questions in four key areas,

Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the

customer should be invited to participate in the survey. Setting realistic expectations

during the sales process is a vital component of making happy customers. How a

company sets and meets product and service expectations plays a pivotal role in

fashioning customer opinions. How a company meets or exceeds expectations is

measured in three important areas: product/service, support, and price. These three areas

will be used to factor a score for the Expectations category. The results of the three

questions will be used to factor an overall expectations perception score.

The Purchase Decision category gives us a better understanding of how the customer

perceives the purchase process. Two key areas for questions include an open ended

question on why they purchased and a ratings question on their experience. The rating

Question data will be used for the analysis of Purchase Decision category. The open

ended responses from the “Why” questions will be used for product strengths analysis.

The results of the purchase experience question will be used for the overall Purchase

perception analysis. Customer service is one of the most important differentiations a

company can have. For this report, customers will rate a company in three key areas:

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customer service, timeliness for problem resolution, and expertise. These three areas will

be used to factor a score for the Customer Service category.

Purpose of Literature Review

Literature review is one of the prime parts of every project. The very basic purpose of

the literature review is to gain insight on the theoretical background of the research

problem. It helps the researcher to gain strong theoretical basis of the problem under

study and also help to explore whether any one has done research on the related issue.

That’s why literature review helps one to find out the path of problem solving. In this

regards the very basic purpose of the literature review in this dissertation is same as

mentioned

2.6 Methodology

The research will be done through survey method. The collection of data will be

done through questionnaire, interview and related websites

The sample size taken for this research is 100 customers those who having Hero

Honda motor bikes.

The area of this survey consist of Bangalore city

The collection of data will be done with the help of a structured questionnaire. The

designing of questionnaire needs precision and classification of the subject, so that the

respondents can easily understand the question and can answer it sincerely and correctly.

2.7 Sources of Data

Primary data:-

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Primary data consists of original information for the specific purpose at hand. It is

first hand information for the direct users of respondents. The tools used to collect the

data may vary and can be collected through various methods like questionnaire, personal

interview

Secondary data:-

Secondary data is the data which is already been collected and assembled. This

data is available with the companies or firms and it can be collected from newspapers,

periodicals, magazines, websites etc.

Sample Design

Sample

The sample size taken for this research is 100 customers having Hero Honda motorbikes.

Sampling Technique

Convenient Sampling technique is used for this project.

Data Collection Tool

Questionnaires as the primary form of collecting data.

Statistical techniques

1. Bar Diagrams

2. Pie-Chart

Statistical tools

1. Statistical software like Microsoft Excel

2.9 Limitations of the study:-

a) In this study it is not possible to collect the opinion of all the customers owing

to personal constraints. So the assumptions are drawn on the basis of the

information given by the respondents.

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b) The study needs to be completed within a specified time of one month and in

certain restricted areas. So the findings cannot be generalized for the company

as a whole.

c) This study covers only a limited Hero Honda sector. So this study will not be

applicable for those areas.

2.10 CHAPTERIZATION

1. Introduction

2. Research Methodology

3. Profile of the Industry and Company

4. Analysis of the Data Collected

5. Findings, Suggestions and Conclusion

Bibliography

Appendix

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CHAPTER 3

PROFILE OF THE INDUSTRY AND

COMPANY

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3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

CHAPTER 4

ANALYSIS AND INTERPRETATION OF

DATA

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4. 1 ANALYSIS OF DATA COLLECTED

Consumer Perception towards HERO MOTOCORP Motor Bikes in

Bangalore City

Statement of Problem

Stepping down of Hero Honda’s position form a market leader to an ordinary market

survivor has posed and alarming condition before the company. The present study would

like to have an insight of consumer’s perception about the criteria of selecting the bikes.

Especially to figure out whether it is brand driven or quality driven

Before five years Hero Honda was the market leader in motor bike industry in India. But

in now a day they are losing their grip in motor bike industry, none of their bike except

‘Splendor’ became a success. And the competitors like Bajaj and TVS has taken

advantage of this. There is no doubt that the companies market share is falling down. So

this study will help to understand and identify what the consumer feels or perceives

about Hero Honda motor bikes. This will help the marketer to identify which all are the

factors that a consumer looks in to when he selects a particular bike. And also explains

how a consumer selects and interprets the qualities of bike that Hero Honda offers.

Objectives of the Study

1. To analyze consumer perception towards Hero Honda motor bikes

2. To get feed back on what consumer expects from Hero Honda

3. To analyze consumer perception towards services offered by Hero Honda and

performance of the motor cycle

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Methodology

The research will be done through survey method. The collection of data will be

done through questionnaire, interview and related websites

The sample size for this research is 100 customers those who having Hero Honda

motor bikes.

The area of this survey consist of Bangalore city

The collection of data will be done with the help of a structured questionnaire. The

designing of questionnaire needs precision and classification of the subject, so that the

respondents can easily understand the question and can answer it sincerely and correctly.

Sources of Data

Primary data:-

Primary data consists of original information for the specific purpose at hand. It is

first hand information for the direct users of respondents. The tools used to collect the

data may vary depend can be collected through various methods like questionnaire, direct

personal interview

Secondary data:-

Secondary data is the data which is already been collected and assembled. This

data is available with the companies or firms and it can be collected from newspapers,

periodicals, magazines, websites etc.

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Analysis of the Data Collected

4.1.1 Gender of the Respondents

Table No 4. 1

GENDER NO OF RESPONDENTS % OF RESPONDENTS

MALE 96 96%

FEMALE 4 4%

TOTAL 100 100%

Source: survey data

Interpretation:

The above table showing the sex of the respondents those who participated

in the survey

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Chart No 4.1

Analysis:

Above 90% of respondents of the survey were male customers and there were

only a few female respondents.

Gender of Respondents

MaleFemale

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4.1.2 Age of the Respondents

Table No 4. 2

AGE NO. OF RESPONDENTS % OF RESPONDENTS

18-25

42 42%

25-40

34 34%

40-55

19 19%

ABOVE 55

5 5%

TOTAL

100 100%

Source: survey data

Interpretation:

The above table showing the age categories of the Hero Honda customers who

participated in the survey

.

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Chart No 4.2

0

5

10

15

20

25

30

35

40

45

No of Respondents

18-25 25-40 40-55 >55Age

Age of the respondents

Analysis:

Above 40% of the participants of the survey were between18-25 of age and second

most participants were between25-40. There were only 5 participants responded above 55

age group

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4.1.3 Occupation of the Respondents

Table No 4. 3

Occupation No of Respondents % of Respondents

Business 18 18%

Professional 14 14%

Employee 20 20%

Student 38 38%

Others 10 10%

Total 100 100%

Source: survey data

Interpretation:

The above table showing the occupation of the Hero Honda owners those who

participated in the survey and their percentage wise analysis

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Chart No 4.3

Occupation of the Respodents

0

5

10

15

20

25

30

35

40

Business Pfsnl Emplye Stdnt Others

Occupation

No o

f Res

pond

ents

Analysis:

The majority of the Hero Honda customers participated in the survey were

students. There were 38% and the 20% employees who are Hero Honda owners.

And the Professionals and Businessmen constitute only 32%.

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4.1.4 SOURCES OF AWARENESS OF HERO HONDA

Table No 4. 4

SOURCE NO. OF RESPONDENTS % OF

RESPONDENTS

ADVERTISEMENT 38 38%

FRIENDS 24 24%

RELATIVES 10 10%

OTHERS 28 28%

TOTAL 100 100%

Source: survey data

INTERPRETATION: -

The above table tells about which of the source is more effective in spreading the

awareness about Hero Honda bikes

Chart No 4.4

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Analysis:

This statistic reveals that greater part of respondents have got the information from T.V

and advertisement other than friends & relatives which plays an important role in

influencing them to opt for Hero Honda.

This reveals that Hero Honda is able to influence its consumer base to tell other about

their product.

4.1.5 SATISFACTION ABOUT PRODUCT BRIEFING DONE BY SALES

EXECUTIVE

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Table No 4. 5

SATISFACTION NO. OF

RESPONDENTS

% OF

RESPONDENTS

YES 92 92%

NO 08 08%

TOTAL 100 100%

Source: survey data

INTERPRETATION: -

This table showing the satisfaction level of customer about the product briefing

done by the sales executive

Chart No 4.5

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Analysis:

The statistic reveals that the product profile presented by the Salesman of Hero Honda is

truly trustworthy with a majority of 92% of respondents showing satisfaction towards

products briefing.

4.1.6 TEST RIDE PROCESS

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Table No 4. 6

TEST RIDE NO. OF RESPONDENTS % OF RESPONDENT

YES 100 100%

SNO 0 0%

TOTAL 100 100%

Source: survey data.

INTERPRETATION: -

This table showing no. of respondents took a test drive of Hero Honda bike

Chart No 4.6

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Test Ride Process

0

20

40

60

80

100

120

Yes No

Test Ride

No.

of R

espo

nden

ts

Analysis:

The statistic reveals that almost all the customers are offered for a test drive and were

satisfied with the process.

The test ride is offered within the limits of the showroom and a service employee is

sent with the customer.

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4.1.7 PERCEPTION TOWARDS SALES PROCESS

Table No 4. 7

PERCEPTION NO. OF RESPONDENTS % OF RESPONDENTS

VERY GOOD 33 33%

GOOD 56 56%

FAIR 11 11%

POOR 00 00%

TOTAL 100 100%

Source: survey data.

Interpretation: -

This table indicates perception level of Hero Honda customers about the over all

sales process of Hero Honda bikes providing by the manufacturer through their dealers

Chart No 4.7

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Analysis: The study reveals that the consumer perceives the dealer’s sales process as good and

very good with the percentage being 56% and 33% respectively.

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4.1.8 SATISFACTION ABOUT AFTER SALES SERVICE

Table No 4.8

Source: survey data

SATISFIED NO. OF RESPONDENTS % OF RESPONDENTS

YES 93 93%

NO 07 07%

TOTAL 100 100%

Interpretation: -

This table shows the satisfaction level of customers about the after sales services

provided by Hero Honda

Chart No 4.8

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Analysis:

The statistic indicates that the greater part of respondent are satisfied with the

sales service which falls

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4.1.9 PERCEPTION OF RESPONDENTS REGARDING

COMPLAINT RECOGNITION

Table No 4.9

PERCEPTION NO. OF RESPONDENTS % OF RESPONDENTS

VERYGOOD 36 36%

GOOD 53 53%

FAIR 11 11%

POOR 0 0%

TOTAL 100 100%

Source: survey data.

Interpretation: -

The table reveals that the complaints of consumer after sales were duly attended by the

sales force. This shall be of competitive tool to be used to build up the brand image.

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Chart No 4.9

Perception of Respondents regarding complaint recognition

Very GoodGoodFairPoor

Analysis: More than 50% of the respondents said that the complaint recognition of Hero

Honda is good. And nobody claimed that their complaint recognition is poor. This

indicates that Hero Honda is providing their customers good services.

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4.1.10 PERCEPTION TOWARDS MECHANICS OF HERO HONDA

Table No 4.10

EXPERT

MECHANICS

NO.OF

RESPONDENTS

% OF RESPONDENTS

YES 78 78%

NO 22 22%

TOTAL 100 100%

Source: survey data

Interpretation: This table shows that whether Hero Honda have their own well trained and

expert mechanics those who can meet the needs and expectation of the consumer or

not

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Chart No 4.10

Expert Mechanics

0

10

20

30

40

50

60

70

80

90

Yes No

Response

No o

f Res

pond

ents

Analysis:

Majority of the consumers felt that Hero Honda having good and

well trained mechanics to provide better service to the customers as per their

expectation.

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4.1.11 PERCEPTIOIN TOWARDS THE ATTRIBUTES OF HERO

HONDA

Table No 4.11

ATTRIBUTES NO OF RESPONDENTS % OF RESPONDENTS

STYLE 13 13%

MILEAGE 32 32%

PERFORMANCE 24 24%

COMFORT 11 11%

PRICE 4 4%

BRAND NAME 16 16%

TOTAL 100 100%

Source: survey data

Interpretation:

The above table showing that the attribute of Hero Honda which the customers ranked

most. This indicates that which of the attribute the consumer likes most in a Hero Honda

motor bike

Chart No 4.11

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Perception towards Attributes

0

5

10

15

20

25

30

35

Style Mileage Perfmns Comfort Price Brd nme

Attributes

No o

f Res

pond

ents

Analysis:

Most of the consumers those who participated in the survey ranked mileage as

most attractive attribute of Hero Honda. And the second most attribute which got

ranked first is the performance of Hero Honda bike. The least attractive attribute

is price.

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4.1.12 CONSUMER PERCEPTION TOWARDS PERFORMANCE

OF HERO HONDA Table No 4. 12

OPINION NO. OF RESPONDENTS % OF RESPONDENTS

EXCELLENT 27 27%

GOOD 56 56%

SATISFACTORY 17 17%

POOR 0 0%

TOTAL 100 100%

Source: survey data.

INTERPRETATION: -

This table indicates consumer’s satisfaction towards the performance of the

Hero Honda motor bikes

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Chart No 4.12

Perception towards Performance

ExcellentGood

SatsfctryPoor

Analysis:

As per the above table the respondents feel that Hero Honda’s performance is good

revealed by their personal experience of using the bike. This shows that Hero Honda has

very good market potential through its performance

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4.1.13 AVAILABILITY OF SPARE PARTS OF THE HERO HONDA

Table No 4.13

AVAILABILITY NO OF RESPONDENTS % OF RESPONDENTS

EASILY AVAILABLE 100 100%

HARDLY AVAILABLE 0 0%

NOT AVAILABLE 0 0%

TOTAL 100 100%

Source: survey data

Interpretation:

The above table showing the availability of the Hero Honda spares parts

Chart No 4.13

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Availablity of Spare Parts

Esly availHdly avail

Not avail

Analysis:

The Hero Honda customers are satisfied about the availability of its spare parts. All

the respondents said that the Hero Honda spares are easily available.

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4.1.14 CONSUMER’S PREFERENCE IN SERVICING THE BIKE

Table No 4.14

SERVICE PREFERENCE NO OF RESPONDENTS % OF RESPONDENTS

SERVICE CENTRE 47 47%

AUTHORISED DEALER 34 34%

LOCAL MECHANIC 19 19%

TOTAL 100 100%

Interpretation:

This is about where would the consumer prefers when it comes to the servicing

bike. Whether they choose service centre or authorized dealer. Other than this would they

prefer local mechanics?

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Chart No 4.14

0

5

10

15

20

25

30

35

40

45

50

No of Respondents

Ser cntr Auth dlr Lcl mech

Preference

Service preference

Analysis:

Majority of the consumers prefers service centre for servicing their bike. And the

second most preference is authorized dealers apart from this only a small no. of

consumers prefers local mechanics.

4.1.15 FACTORS INFLUENCED IN PURCHASE DECISION

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Table No 4. 15

FACTORS NO. OF RESPONDENTS % OF RESPONDENTS

POWER 13 13%

STYLE 17 17%

PRICE REDUCTION 26 26%

MORE COLOURS 9 9%

FREE ACCESSORIES 11 11%

FUEL EFFICIENCY

TOTAL

24

100

24%

100%

Source: survey data.

Interpretation: -

This is about the factor which influenced the customer to take his decision to

buy a Hero Honda bike.

.

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Chart No 4.15

Factors influenced in Purchase Decision

Power

StylePrce rdtn

Mre clrsFre acsrs

Fuel efncy

Analysis:

From the study its revealed that the price cut from Hero Honda influenced customer

most for buying the bike and the percentage being 26%. This is followed by an influence

of fuel efficiency and style with 24% and 17% of the respondents

CHAPTER 5

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FINDINGS, SUGGESTIONS AND

CONCLUSION

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5.1 FINDINGS

The old prophecy that once a customer is a customer has become a myth in the

present day competitive world. Brand image is no longer works a magic with the

consumer. So to hold the customer to the brand and attract new consumers the company

must produce products that are efficient and competent along with its marketing activities

that help in sales of the product.

After analyzing the response of the consumer interviewing through questionnaire and

observation the following were found in the study.

1. Hero Honda motor cycles were the market leader in the Two Wheeler

segment. But they are losing their grip in the market. Even the 48% Hero

Honda customers said that if they get a second chance they would prefer

Bajaj.

2. The Brand Name of Hero Honda is still there in the market and in the

minds of the customer.

3. There are only a few women Hero Honda customers and they own Hero

Honda Pleasure.

4. Now days the main Hero Honda customers are students between 18-25

years of age and they like the bike because of its mileage.

5. Advertisements of Hero Honda bikes are very effective. Introduction of

Hrithik Roshan helps Hero Honda a lot.

6. Majority of the customers got the opportunity of test ride and they are

satisfied with the product briefing by the Hero Honda sales executive.

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7. The most demanded Hero Honda Brands are Splendor+ and Super

Splendor. Major part of the users of this brand is employees next are

students.

8. Most of the Hero Honda customers have satisfied with the after sale

service and servicing of bike.

9. From analysis and interpretation it is found that Hero Honda is mainly

chosen for its mileage performance and brand image.

10. Majority of the customers have satisfied with the performance of Hero

Honda.

11. HERO HONDA is the only two wheeler company in India which has

given these vast ranges of motorcycles to the market, obtained form

general observation during the study

12. HERO HONDA has plans of letting some more new models in future such

as CBZ Extreme .As per the information it was found that splendor is the

world’s largest selling bike.

13. Majority of the customers were aware of HERO HONDA through T.V. &

newspapers advertisement. Other than this there friends & Relatives also

place an important role in influencing the customer

14. And in the case of servicing and repairing the bike most of them prefer

Service Centers Majority of customers get their vehicle service a

Authorized service units and authorized dealers and very few services on

to local services centers.

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15. The most important factor which influenced the customer to buy a Hero

Honda bike is price reduction followed by fuel efficiency.

16. Customers are satisfied about HERO HONDA bike because of easy

availability of spares parts of their bike.

17. From the survey it’s revealed that Bajaj motors is the foremost competitor

of Hero Honda followed by TVS.

18. HERO HONDA bikes are said to have very good resale value in the

market.

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5.2 CONCLUSION

Hero Honda is one of leading two wheeler producer in the world and a major player in

the Indian Market. They were the producer of largest selling motor cycle of the world that

is Hero Honda Splendor it has its own importance still in the market. But from the past

two or three years Hero Honda suffered a slight loss in its market share and Bajaj became

a big competitor to Hero Honda. The introduction of Bajaj Pulsar is one of the biggest

threat to Hero Honda. Hero Honda is one of the leading two wheeler producer in the

globe. It holds an important place in the minds of consumer by providing efficient service

and better products. Product efficiency and innovations are the method they live up

today. Their engineering is comprehensive.

Consumer perception towards Hero Honda motorcycles is very good. It has created a

very good brand image for it self by providing low maintenance, fuel efficient, sleek

looking models along with efficient after sales service. It has attracted every class of

customers.

In today’s competitive business environment, it is only due to the positive perception of

the consumer that the company is being able to compete in the market with its other

competitors.

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5.3 RECOMMENDATONS AND SUGGESTIONS

1. Most of the customers are of the view that the price tag of HERO HONDA

bikes as compared to other similar bikes is a bit higher. Hence the price of the

bikes especially the power range bikes like CD DELUXE, CBZ XTREME,

and KARIZMA could be reduced.

2. CD-Dawn, Splendor+ and Passion Plus, could be added with more power,

mileage and given with more colours.

3. The customers should be provided with enough information regarding

effective maintenance of the bike so that the consumers get the best from the

bike.

4. HERO HONDA has to identify those dealers who are facing the problem with

sales and take adequate measures to keep up the so far created brand image.

5. Hero Honda has to use more promotional techniques to improve the sales in

future. It has to conduct more road shows/public display by which the

consumer is given with much detailed information about the product and more

public awareness is created.

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6. Many existing customer have stated that some Hero Honda vehicle

(CD-Dawn, Splendor) do not have a good road grip. Hence it is suggested that

those vehicle must be re-engineered for better road grip.

7. Many existing customers have stated that the splendor+ be provided with self

starter and disc brakes. So the company should focus on those factors.

8. HERO HONDA has offered just one model (HERO HONDA PLEASURE)

for women whereas its competitors are offering more then two so they should

concentrate on that aspect.

9. The models ACHIEVER and AMBITION should be re-launched with more

value added features.

10. Apart from KARIZMA and CBZ-XTREME all other models are light weight

and hence are prone to accidents.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

TEXTBOOKS REFERRED

Kotler Philip, Marketing Management, Pearson Education Inc. 11th Edition.

Consumer Behaviour – Building Marketing Strategy 9th Edition 2003, Tata McGraw

Hill.

Stanton William J, Etzel Michael J, Walker Bruce J, Fundamentals of Marketing,

McGraw-Hill international, Singapore, 1998

MAGAZINES

Business Today

Business World

Business standard

Auto India

Overdrive

NEWSPAPER REFERRED

Economics Times

Business Times

The Times of India

Business Standard

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WEB SITE REFERRED

www.herohonda.com

www.herogroup.com

www.autoindia.com

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ANNEXURE

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ANNEXURE. 1

QUESTIONNAIRE

Dear customer, .

I Joyal John final year MBA student of the Kristu Jayanti College of Management and Technology doing a project work on “Consumer Perception towards HERO HONDA Motor Bikes in Bangalore City” for my academic purpose. I request you to kindly fill this questionnaire.

Thanking you,

Sincerely yours,.1. Name:-

2. Age: - 18-25 25-40 40-55 >55

3. Sex Male Female

4. Occupation:- Business Professional Employee Student Others 5. How did you come to know the name HERO HONDA?

Friends Advertising Relatives Others

6. Are you satisfied with product briefing done by the sales executive?

Yes No

7. Have you gone for test drive?

Yes No

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8. What is your opinion about overall sales process?

Very good Good

Fair Poor

9. Are you satisfied with the after sales service provided by Dealer?

Yes No

10. Do they have expert mechanics who can cater to the needs of the customers?

Yes No

11. Rank the attributes of HERO HONDA bikes as per your preference, Rank 1-Most attractive, Rank 6-Least attractive

Style Mileage Performance Comfort Price Br Brand Name

12. What is your opinion on the performance of HERO HONDA bikes?

Excellent Good

Satisfactory Poor

13. How is the availability of spare parts of the HERO HONDA?

Easily available Hardly available Not available

14. When it comes to service the bike, where would you prefer?

Service centre Authorized Dealer Local Mechanic

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15. Rank the factors which have influenced you purchase of HERO HONDA bike? Rank 1- Most influenced, Rank 6- Least influenced

Power Style

Price reduction More colors

Free accessories Fuel Efficiency

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