CHAPTER 1 INTRODUCTION 1
Aug 23, 2014
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
49
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
57
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
60
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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