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INTRODUCTION

BRAND INTRODUCTION:

Branding is centuries old. Brick-makers in ancient Egypt placed

symbols on their bricks to identify their products. Brand names, however,

first appeared in the early 16th century, when Whisky Distillers shipped

their products in wooden barrels with the name of the producer burned or

branded on the top of each brand.

The brand concept evolved in the 18th century as the names and

pictures of animals, place of origin, and famous people began replacing

many of the producer’s names. The new purpose was to strengthen the

association of brand names with product. Producers wanted both to make

their products easier to remember and to differentiate their products from

that of their competitors.

In 19th century, brand was used to enhance a producer’s perceived

value through such associations. The purpose and strategies of branding

have evolved even further in the 20th century. The concept of brand equity,

however, has received much attention recently.

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Brand equity form an individual customer perceptive is reflected by

the increase in attitudinal strength for a product using that brand. Three

elements are essential in building a strong brand with the consumer: apositive brand evaluation, an accessible brand attitude and consistent brand

image.

Branding is an essential element of product strategy. Brands serve

important communication function, and doing so, establish beliefs among

consumers about the attributes and general image of the product. After a

brand has been established, the brand name, logo and trademark serve to

remind and reinforce the beliefs that have been formed. To reach this stage,

the firms must have made good on their promises.

Extend to which a brand or brand name is recognized by potential

buyers, and correctly associated with the particular product in question.

This is a general term that describes the services offered by most

search engine marketing companies. Search engine promotion is the process

of increasing rankings, traffic and brand awareness resulting and search

engines.

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The degree to which the objectives of an advertisement or advertising

campaign have been achieved; the effectiveness is commonly gauged be

measuring the effect on sales, brand awareness, brand preference etc.

Awareness the percentage of population or target market who are

aware of the existence of a given brand or company.

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INDUSTRY PROFILE

EVOLUTION OF TWO WHEELER:

Around the turn of the 20th century, bicycle racing was big in the USA

Bicycles would race around big curved tracks called velodromes aided by

pacing machines powered by internal combustion engines. These pacers

were made in Europe and often broke down. A young designer named Oscar

Hedstrom built his own American pacer. He met up with a racer named

George Hendee who had his own bicycle manufacturing plant in Springfield,

MA. The two combined forces and created a bicycle powered by an engine

developed by Hedstrom. Thus was born the Hendee Manufacturing

Company and the Indian motorcycle. They chose the name Indian since it

would signify an American product. George Hendee became known as the

Big Chief (B.C.) and Oscar Hedstrom became known as the Medicine Man.

The factory was called the Wigwam and the dealer network was called the

Tribe.

The company finally changed its name from the Hendee

Manufacturing Company to the Indian Motorcycle Company in 1923.The

first V-twins from Indian were produced in 1907. Hedstrom left the

company after a dispute in 1913, never to work in the motorcycle industry

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again. In another dispute within the newly formed company, Hendee also

left the company in 1916. Indian began making motorcycles in 1901 as the

Hendee Manufacturing Company. The first production model was in 1902and 143 units were produced.

In 1903 376 motorcycles were sold. It continued production through

1953 when it no longer made the classic Indian. In 1999 Indian motorcycles

were again produced, this time by the Indian Motorcycle Corporation. This

was not the same company but it did have rights to the Indian name and

trademarks.

We present here a look at Indian models from the first prototype

model in 1901 to the present as provided by About.com members. A gallery

called "58 Years of Indian" is provided that gives a picture and description

for each model year from 1901 to 2003. of this article discusses the founding

and early growth of the Indian Motocycle Company. Note the spelling here

of "motocycle" instead of "motorcycle." The term "motocycle" was an

archaic word used in the nineteenth century to denote any horseless carriage.

Indian wanted to distinguish itself from the competition by using the older

word.

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Historical Industry Development

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

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

of two-wheelers produced and domestic sales respectively. This distinction

was achieved due to variety of reasons like restrictive policy followed by the

Government of India towards the passenger car industry, rising demand for

personal transport, inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early

50s when Automobile Products of India (API) started manufacturing

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

In 1948, Bajaj Auto began trading in imported Vespa scooters and

three-wheelers. Finally, in 1960, it set up a shop to manufacture them in

technical collaboration with Piaggio of Italy. The agreement expired in

1971.

In the initial stages, API dominated the scooter segment; Bajaj Auto

later overtook it. Although various government and private enterprises

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

LML.

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Under the regulated regime, foreign companies were not allowed to

operate in India. It was a complete seller market with the waiting period for

getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three

manufacturers viz Enfield, Ideal Jawa and Escorts. While Enfield bullet was

a four-stroke bike, Jawa and the Rajdoot were two-stroke bikes. The

motorcycle segment was initially dominated by Enfield 350cc bikes and

Escorts 175cc bike.

The two-wheeler market was opened to foreign competition in the

mid-80s. And the then market leaders - Escorts and Enfield - were caught

unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint

ventures. With the availability of fuel-efficient low power bikes, demand

swelled, resulting in Hero Honda - then the only producer of four stroke

bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties.

HERO HONDA Suzuki and Hero Honda brought in the first two-stroke and

four-stroke engine motorcycles respectively. These two players initially

started with assembly of CKD kits, and later on progressed to indigenous

manufacturing. In the 90s the major growth for motorcycle segment was

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brought in by Japanese motorcycles, which grew at a rate of nearly 25%

CAGR in the last five years.

The industry had a smooth ride in the 50s, 60s and 70s when the

Government prohibited new entries and strictly controlled capacity

expansion. The industry saw a sudden growth in the 80s. The industry

witnessed a steady growth of 14% leading to a peak volume of 1.9mn

vehicles in 1990.

The entry of Kinetic Honda in mid-eighties with a radiometric scooter

helped in providing ease of use to the scooter owners. This helped in

inducing youngsters and working women, towards buying scooters, who

were earlier, inclined towards moped purchases. In the 90s, this trend was

reversed with the introduction of cooperates. In line with this, the scooter

segment has consistently lost its part of the market share in the two-wheeler

market.

In 1990, the entire automobile industry saw a drastic fall in demand.

This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a

production loss of 0.4mn vehicles. Barring Hero Honda, all the major

producers suffered from recession in FY93 and FY94. Hero Honda showed a

marginal decline in 1992.

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The reasons for recession in the sector were the incessant rise in fuel

prices, high input costs and reduced purchasing power due to significant rise

in general price level and credit crunch in consumer financing. Factors likeincreased production in 1992, due to new entrants coupled with the recession

in the industry resulted in company either reporting losses or a fall in profits.

India is one of the very few countries manufacturing three-wheelers in

the world. It is the world's largest manufacturer and seller of three-wheelers.

Bajaj Auto commands a monopoly in the domestic market with a market

share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and

Scooters India.

The total number of registered two-wheelers and three-wheelers on

road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively.

The two-wheeler population has almost doubled in 1996 from a base of

12.6mn in 1990.

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COMAPANY PROFILE

HERO HONDA MOTORS LTD.

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarters New Delhi, India

Key people

Brijmohan Lal Munjal, Founder

Mr. Brijmohan Lal Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing

Director

Mr. Pawan Munjal, Managing Director, CEO

Industry Automotive

Products Motorcycles, Scooters

HISTORY OF HEROHONDA:

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Hero Honda Motors Limited, based in Delhi, India, is the world's

largest manufacturer of motorcycles. Hero Honda is a joint venture that

began in 1984 between the Hero Group of India and Honda of Japan. It has

been the world's biggest manufacturer of 2-wheeled motorized vehicles

since 2001.

Hero Honda's Splendor is the world's largest selling motorcycle. Its 2

plants are in Dharuhera and Gurgaon, both in India. Third plant at Haridwar,

Uttranchal. It will have world class production facilities like Lean

Manufacturing concept, more flexible lines & Stream line material flow,

within & proximity (Planning to set vendors in nearby locating constituting

HHML Park). It specializes in dual use motorcycles that are low powered

but very fuel efficient.

Hero Honda bikes currently roll out from two globally benchmarked

manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These

plants together are capable of churning out more bikes. A third state of the

art manufacturing facility at Hardwar in Uttranchal will soon be

commissioned to cope with sustained customer demand.

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During the 80s, Hero Honda became the first company in India to

prove that it was possible to drive a vehicle without polluting the roads. The

company introduced new generation motorcycles that set industry

benchmarks for fuel thrift and low emission.

A legendary 'Fill it - Shut it - Forget it' campaign captured the

imagination of commuters across India, and Hero Honda sold millions of

bikes purely on the commitment of increased mileage.

Hero Honda two wheelers are almost as many as the number of people

in Finland, Ireland and Sweden put together.

HERO HONDA'S MISSION:

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

systems and human resources, to produce products and services that meet

the quality, performance and price aspirations of its customers. At the same

time maintain the highest standards of ethics and social responsibilities.

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

and helps the organization forge a unique and mutually beneficial

relationship with all its stake holders.

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HERO HONDA'S MANDATE:

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

proven management, extensive dealer network, efficient supply chain and

world-class products with cutting edge technology from Honda Motor

Company, Japan. The teamwork and commitment are manifested in the

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

reinforcing its leadership status.

“Hero” is the brand name used by the Munjal brothers in the year

1956 with the flagship company Hero Cycles. The joint venture between

India's Hero Group and Honda Motor Company, Japan has not only created

the world's single largest two wheeler company but also one of the most

successful joint ventures worldwide.

Hero Honda has consistently grown at double digits since inception;

and today, every second motorcycle sold in the country is a Hero Honda.

Every 30 seconds, someone in India buys Hero Honda's top -selling

motorcycle - Splendor.

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Hero Honda's extensive sales and service network now spans over

3000 customer touch points. These comprise a mix of dealerships, service

and spare points, spare parts stockists and authorized representatives of

dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM

initiative - Hero Honda Passport Program, one of the largest programs of this

kind in the world, has over 3 million members on its roster. The program has

not only helped Hero Honda understand its customers and deliver value at

different price points, but has also created a loyal community of brand

ambassadors.

Having reached an unassailable pole position in the Indian two

wheeler market, Hero Honda is constantly working towards consolidating its

position in the market place. The company believes that changing

demographic profile of India , increasing urbanization and the empowerment

of rural India will add millions of new families to the economic mainstream.

This would provide the growth ballast that would sustain Hero Honda in the

years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda

Motors succinctly points out, "We pioneered India’s motorcycle industry,

and it's our responsibility now to take the industry to the next level. We'll do

all it takes to reach there.

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INITIATIVE:

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 serve

mankind.

BOARD OF DIRECTORS- 15 -



No. Name of the Directors Designation

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

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro Takedagawa Non-executive Director

8 Mr. Satoshi Matsuzawa(Alternate Director to Mr. TakashiNagai)

Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & IndependentDirector

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

11 Mr. Analjit Singh Non-executive & IndependentDirector

12 Dr. Pritam Singh Non-executive & IndependentDirector

13 Ms. Shobhana Bhartia Non-executive & IndependentDirector

14. Mr. Meleveetil Damodaran Non-executive & IndependentDirector

15. Mr. Ravi Nath Non-executive & IndependentDirector

16. Dr. Anand C. Burman Non-executive & IndependentDirector

Quality Policy:

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Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do,

particularly in our products and services which will meet and exceed

customer's growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility.

Safety Policy:

Hero Honda is committed to safety and health of its employees and other

persons who may be affected by its operations. We believe that the safe

work practices lead to better business performance, motivated workforce and

higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and

contractors.

- 17 -



Brijmohan Lall, Chairman of Hero Honda, receives the Padma Bhushan

from the President A P J Abdul Kalam on Monday, March 28, 2005.

Dr. Brijmohan Lall Munjal has been conferred the prestigious Padma

Bhushan Award, for his contribution to the Trade and Industry, by the

President A P J Abdul Kalam at the investiture ceremony held at theRashtrapati Bhavan on 28.3.05.

Dr. Munjal is considered to have led Hero Honda from the front to

establish it as a ‘World No. 1’ two wheeler company. A true entrepreneur,

he set up Hero Cycles factory in 1956, which engaged in manufacturing

complete bicycles and went on to become the world’s largest bicycle

producer in 1986, a position it has held since then. In 1984 he started HeroHonda, the joint venture of Hero with Honda Motor Co. Japan. The

company heralded the two-wheeler revolution in India and became the

world’s largest two – wheeler

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MILESTONES OF HERO HONDA

Year Event

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

signed

Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

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

of founder Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model-"Splendor"introduced

1,000,000th motorcycle produced

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1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with

ISO-14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the

memory of founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-

14001 by DNV Holland

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

model

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million productions in one single year

new motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

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2002 New motorcycle model - "Dawn" introduced

new motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,

Harbhajan Singh and Zaheer Khan as Brand Ambassadors

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

sales mark

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

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

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

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

consecutive year.

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

Splendor - World's largest selling motorcycle crossed the 5 millions

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

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

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced


15 million production milestone achieved


New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched

20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched

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CD Deluxe lauched with power start feature

New 'Glamour' launched

New 'Glamour Fi' launched

2009 Hero Honda Good Life Program launchedHunk' (Limited Edition) launched

Splendor completed 11 million production landmark

New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

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Awards & Recognitions

2010 Company of the Year awarded by Economic Times Awards for

Corporate Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike

Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-

wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector

by the Dun & Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the

'Motorcycles' category

- 24 -



NDTV Profit Business Leadership Awards 2009 - two-wheeler

category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins

the Coveted "NDTV Profit Business Leadership Award 2008"

Top Gear Design Awards 2008 - Hunk Bike of the Year Award

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

Choice Award” to Hunk in Bike category

India Times Mindscape and Savile Row ( A Forbes Group Venture )

Loyalty Awards - “Customer and Brand Loyalty Award” in

Automobile (two-wheeler) sector

Asian Retail Congress Award for Retail Excellence (Strategies and

Solutions of business innovation and transformation) - Best Customer

Loyalty Program in Automobile category

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

the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

- 25 -



No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

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

following category:

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

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

"Bike Technology of the Year" - Glamour PGM FI

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

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

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

Magazine

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

2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the

Customer Awards 2006.

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

Indian Two Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of

- 26 -



world’s most reputed companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility

Award.

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

Satisfaction Awards

Splendor Plus (Executive)

CD Deluxe (Entry)

Pleasure (Gearless Scooters)

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

Brand Equity Survey 2006.

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

Indian Two Wheeler Company).

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

& Bradstreet - American Express Corporate Awards

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

brand at the Awaaz Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance

during 2003-04 for two-wheeler & three- wheelers - Complete (Non

SSI) by Engineering Export Promotion Council.- 27 -



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

following category:

Bike Maker of the Year

Bike of the Year - Achiever

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

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

NDTV Viewers' Choice Award to Glamour in the bike category

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

brand by CNBC in the 'Automobiles' category.

Bike Maker of the Year Award by Overdrive Magazine.

ICWAI National Award for Excellence (Second) in Cost Management

2004 in the private sector category by ICWAI.

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

wealth creator for the period 1991-2005.

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

Rank amongst the top 10 Indian companies).

- 28 -



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

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

by The Outlook Money.

Corporate Excellence Award 2004 by Indian Institute of Materials

Management.

Adjudged as the Organization with Innovative HR Practices by HT

Power Jobs for HR Excellence.

ICSI National Award for Excellence in Corporate Governance 2004

by The Institute of Company Secretaries of India.

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


Most Respected Company in Automobile Sector by Business World.

Bike Maker of the Year by Overdrive Magazine.

2002 Bike Maker of the Year by Overdrive Magazine.

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


- 29 -



Company of the Year of ET Awards for Corporate Excellence.

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

in 'Best Financial Management' and 'Best Operational Efficiency'

category, ranked 6th in 'Overall Best Investor Relations' category, by

Asia money.

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

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

2001 Bike Maker of the Year by Overdrive Magazine.

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

Rank amongst the top 10 Indian Companies).

Winner of Three Leaves Award for showing Corporate Environment

Responsibility in the Automobile Sector by Centre for Science &

Environment.

1999 National Productivity Award for the Best Productivity Award in the

category of Automobile & Tractor presented by Vice President of

India.

- 30 -



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

being ranked 9th amongst the most investor rewarding companies in

India.

National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of

India).

PROMINENT AWARDS TO THE CHAIRMAN

Year Awards and Accolades

2009 'LMA-Sat Paul Mittal Lifetime Achievement Award' for the year 2008

SIAM Golden Jubilee Award for outstanding contribution in

automobile industry

Lifetime Achievement Award by ACMA

Lifetime Achievement Award by NDTV Profit Business Leadership

Awards 2009

PHD Lifetime Achievement Award 2009

- 31 -



2006 'Lifetime Achievement Award' for Translating Excellence in

Corporate Governance into Reality by The Institute of Company

Secretaries of India

2005 Indian Automotive Hall of Pride by Overdrive

CNBC TV18 Commendation of Business Leadership displaying e

xtraordinary Corporate Leadership and Entrepreneurial Spirit

Padma Bhushan' by Government of India

Doctor of Letters (Honoris Causa) by Hemwati Nandan Bahuguna

Garhwal University, Srinagar Garhwal

Lifetime Achievement Award' by ET Awards for Corporate

Excellence

2004 Life Time Achievement Award for Management by All India

Management Association

D. Litt. (Honoris Causa) by Banaras Hindu University

Lifetime Achievement Award by Amity Business School

Lifetime Achievement Award by HT Power Jobs

- 32 -



2002 Entrepreneur of the Year Award by Business Standard

Giants International Award to the Chairman in the field of Business &

Industry

Business Leadership Award by Madras Management Association

2001 Entrepreneur of the Year Award by Ernst & Young

2000 Sir Jehangir Ghandy Medal for Industrial Peace - by XLRI,

Jamshedpur

1998 Business Leader of the Year by Business Baron

1997 Distinguished Entrepreneurship Award by PHD Chambers of

Commerce & Industry

1995 National Award for outstanding contribution to the Development of

Indian Small Scale Industry (NSIC Award - Presented by President of

India)

1994 Businessman of the Year by Business India Group of Publications

1992 Honorary Membership - Indian Institution of Industrial Engineering

Award

- 33 -



PROMINENT AWARDS TO THE MD & CEO

Year Awards and Accolades

2010 ‘Man of the Year' in the Indian Automotive Industry by NDTV Profit

Car & Bike Awards 2010

2009 ‘Man of the Year' by CNBC TV 18 Overdrive 2009 - Bike India

‘Power Personality’ for 2009

Award for Corporate Excellence in Vocation by Rotary International District

3010

India ‘Power Personality’ for 2009- 34 -





To know about the performance of the hero Honda splendor + towards other

bikes.

NEED FOR THE STUDY

In the modern times the business organizations are adopting new techniques

and methods for the growth of business. The organizations are trying to

provide better services to their customers to face the competition. For every

business, it is not only important to retain the present customers but also to

attract the new customers. Brand Image plays a vital role to attract maximum

number of customers. So this study is concentrated to know brand awareness

of HERO HONDA Splendor+ among the customers.

- 36 -



RESEARCH METHODOLOGY

PRIMARY SOURCE

Primary data is collected by personally interviewing the owners of all the

generators. Each member of the sample responded to the questionnaire.

Therefore the changes of distortion occurring in the communication process,

when the interview was answering the questionnaire, are very much reduced:

SECONDARY SOURCE- 37 -



The secondary data is collected from company news letters magazines of the

process are population, sample frame, sampling unit and sample.

Profitability methods and company web site and is also collected,

automobile magazines and business newspapers were referred to collect the

data.

SAMPLE UNIT

For this study the main samples were the customers who are using the

product.

SAMPLE SIZE :

The sample size is 100.

SAMPLING AREA:

The study has been conducted in the Kurnool Town only.

PERIOD OF THE STUDY:

The period of the study is 45 days.

- 38 -



LIMITATIONS

The period of the study is limited to 45 days.

Some respondents are not interested to give answers due to their busy works.

My study is limited to Kurnool only.

Time is major constraint to interact more customers of HERO HONDA.

- 39 -



DATA ANALYSIS AND INTERPRETATION

Table 1:- Indicating the common mode of Transport

Sno Mode of

Transport

No of

Respondent

Percentage

Respondent

1 Car

5

5%

2 Bike 41 41%

3 Auto 11 11%

- 40 -



4 Bus 40 40%

5 Others 3 3%

Interpretation: - From the above table it can be concluded that the number

of respondents who said that their mode of transport by Car is 5%, Bike is

41%, Auto is 11%, Bus is 40%, and lastly others are 3%.

- 41 -

No of Respondents

5

41

11

40

3

0

5

10

15

20

25

30

35

40

45



Table 2:- Occupation of the people

Sno Occupation No of Respondent

PercentageRespondent

1. Student 20 20%

2. Employee 52 52%3. profession 15 15%

4. Business 13 13%

- 42 -

No of Respondents

20

52

15 13

0

10

20

30

40

50

60

Student Employee profession Business

Student

EmployeeprofessionBusiness



Interpretation: -

From the above table out of 100 samples it is clear that 20% are Students,

52% are Employees, 15% are profession, 13% are business mans.

Table 3:- Aware of HERO HONDA Splendor+

Sno Axare of HEROHONDASplendor+

No of Respondent


1. Yes 96 96%

2. No 4 4%

- 43 -

96

4

010203040506070

8090

100

Yes No

No of Respondents

YesNo



Interpretation: - Out of 100 sample, 96% said that Aware of HERO

HONDA Splendor+ and 4% said that they don’t have Aware of HERO

HONDA Splendor+.

Table 4:- Sources of Information

Sno Factors No of Respondent


1 News Papers 13 13%

2 Televisions 39 39%

3 Current Customers 16 16%

4 Friends/Relatives 30 30%

5 Others 2 2%

- 44 -



Interpretation: -

From the above table it is clear that out of 100 samples, 13% customers

have collected the information about HERO HONDA Splendor+ through

News Papers, 39% of the people gathered the information through

Television, 16% of the people gathered the information through currentCustomers and 30% of the people gathered the information through

Friends/Relatives and 3% got from Others.

- 45 -

No of Respondents

13

39

16

30

205

1015202530354045

News Pap

ers

Televisi

ons

nt Custom

ers

nds/R

elative

s

Others

News PapeTelevisionsCurrent CuFriends/RelOthers



Table 5:- People Owning Bikes

Sno Factors No of Respondent PercentageRespondent

1 Yes 95 95%

2 No 5 5%

- 46 -

95

510

20

30

40

50

60

70

80

90

100

No of Respondents

Yes

No



Interpretation: - Out of 100 sample, 95% said that they owned aMotorcycle and 5% said that they don’t own Motorcycle.

Table 6:- Different Brands of Bikes

Sno Factors No of Respondent PercentageRespondent

1 Pulsar 6

6%

2 Splendor + 70 70%

3 Victor 14 14%

4 Shine 3 3%- 47 -



5 Others 7 7%

Interpretation: -

From the above table out of 100 samples it is clear that 6% are Pulsar

owners, 70% are Splendor+ owners, 14% are Victor owners, 3% Shine

owners and 7% belongs to some other Bike owners.

- 48 -

No of Respondents

6

70

14

37

0

10

20

30

40

50

60

70

80

Pulsar Splendor

+

Victor Shine Others

Pulsar Splendor +Victor Shine

Others



Table 7:- Factors influencing the purchase of HERO HONDASplendor+



1 Price 14 14%

2 Brand name 30 30%

3 Design 20 20%

4 Mileage 30 30%- 49 -



5 Others 6 6%

Interpretation: - From the above table it is clear that 14% are Price

influenced Customers, 30% are influenced by Brand name, 20% are

influenced by Design, 30 % of Customers are influenced by Mileage and

other features influence 6%.

- 50 -

No of Respondents

14

30

20

30

6

0

5

10

15

20

2530

35

Price Brandname

Design Mileage Others

Price

Brand name

Design

Mileage

Others



Table 8:- Awareness of Brand Features



1 Good Mileage 35 35%

2 Pick -up 24 24%

3 Design 14 14%

4 PowerfulHeadlight

9 9%

- 51 -





Table 9: - Mileage given by HERO HONDA Splendor+ Bike



1 40-50 27 27%

2 50-60 40 40%

3 60-70 23 23%

4 Above 70 10 10%

- 53 -



Interpretation: - From the above table it is clear that 27% of respondents

get 40-50kmpl mileage, 40% of respondents get 50-60 kmpl- mileage, 23%

of respondents get 60-70 kmpl mileage and 10 % of respondents get a

mileage of above 70 kmpl.

- 54 -

27

40

23

10

0

5

10

15

20

25

30

35

40

40-50 50-60 60-70 Above 70

No of Respondents

40-5050-6060-70Above 70



Table 10: -Expenditure on Splendor+ for month

Sno Expenses on

bike per

month

No of

Respondent

Percentage

Respondent

1 Below 100rs 2 2%

2 Rs.100-Rs.500 25 25%

3 Rs.500-

Rs.1000

60 60%

4 Above 1000rs 13 13%

- 55 -



Interpretation: - From the above table it is clear that 2% of respondents get

Below100Rs expenses for month, 25% of respondents get Rs.100-Rs.500

expenses of month , 60% of respondents get Rs.500-Rs.1000 expenses for

month and 13 % of respondents get Above 1000 Rs expenses for month.

- 56 -

No of Respondents

2

25

60

13

0

10

20

3040

50

60

70

Below100rs

Rs.100-Rs.500

Rs.500-Rs.1000

Above1000rs

Below 100rs

Rs.100-Rs.500Rs.500-Rs.1000Above 1000rs



Table 11: - Purchasing of HERO HONDA Splendor+ Bike in Future

Factors No of Respondent


1 Victor

13

13%

2 Splendor + 58

58%

3 Shine 4

4%

4 Pulsar 15

15%

5 Others 10 10%

- 57 -





Table 12: - Splendor+ is better than other competitive bikes

Sno Factor No of

Respondent

Percentage

Respondent

1 Brand Loyalty 40 40%2 Price 35 35%3 Services 15 15%4 Technology 10 10%

- 59 -

No of Respondents

40

35

15

10

0

5

10

15

20

25

30

35

40

45

BrandPriceServicTechn



Interpretation: -

From the above table it is clear that out of 100 samples 40% of the people

are stated that Brand Loyalty is better than other competitive bikes, 35% are

stated that Price is better than other competitive bikes, 15% are stated that

Services is better than other competitive bikes, and 10% of people are

Technology is better than other competitive bikes.

- 60 -



Table 13: - Service offered by the company

Sno Satisfaction

level in

Services

No of

Respondent


1 Excellent 51 51%2 Good 30 30%3 Average 13 13%4 Poor 5 5%5 Very poor 1 1%

- 61 -



Interpretation: - From the above table it is clear that 51% Customers areSatisfy the excellent Services, 30% are Satisfy the good Services, 13% are

Satisfy the Average Services, 5% are Satisfy the poor Services and 1%

customers are Satisfy the very poor Services.

- 62 -

No of Respondents

51

30

13

51

0

10

20

30

40

50

60

ExGoAvPoVe



SWOT Analysis:

Strengths:

Ability to understand customer’s needs and wants.

Recognized and established brand name.

Maintenance cost is low

Resell value is high

- 63 -



Company’s name is synonymous with fuel-efficient bikes and connectivity.

Weaknesses:

R & D is not close to the hero manufacturing plant

Hero is vulnerable in the joint venture because Honda Company has so

much power.

Brand name of hero itself has no influence in the automobile industry.

Opportunities:

Global expansion

Expansion of target market (include women)

Becomes India’s leader in the scooter market.

Relatively low rate of interest and the discount of prices offered by dealers

and manufacturers lead to the increasing demand for two wheeler vehicles.

- 64 -



Large market for the high performance segment which is increasing with the

uplifment of the lifestyle of people.

Threats:

Honda motorcycles and scooters India can take away market share and joint

venture to go sour.

Bajaj motors are a strong competitor.

FDI announced in automobiles is 100%.

FINDINGS

Most of the respondents said that their common mode of Transport is Bike.

Majority of the Employees people using HERO HONDA Splendor+.

Most of the people are Aware of HERO HONDA Splendor+.

Majority of the customers of HERO HONDA Splendor+ said that they are

aware of Hero Honda Splendor+ through Television.- 65 -



Majority of the people have their own bike.

Majority of the people owned HERO HONDA Splendor+ Bike.

Majority of the people said that they are influenced by the Mileage and

brand name of the HERO HONDA Splendor+ in Purchasing of it.

It is clear that Majority of the Customers are influenced by the Good

Mileage.

Most of the respondents are spending Rs.500-Rs.1000 expenses for month.

Majority of the people interested to purchase HERO HONDA Splendor+

bike in future.

Majority of the people responded that Splendor+ is Brand Loyalty better

than other competitive bikes.

It is clear that Majority of the Customers are satisfied with the services.

- 66 -



SUGGESTIONS

Company has to increase promotional activities to create awareness among

the customers.

Company has to take certain actions to increase the mileage of the bike.

Company has to increase the features of the bike.

- 67 -



Price of the bike should be reduced to attract price sensitive buyers.

Various models and colors should be released.

Service provision to customers should be improved.

CONCLUSION

After completing the study it is clear that a majority of

respondents gave positive response on the “Brand Awareness of HERO

HONDA Splendor+”. However the company has got more range in their

brands and customer satisfactory level than their competitors. If the

company focuses more on the promotional aspects and the service aspects, it

- 68 -





www. Hero Honda.com

www Google.com

www.wikipedia.com

Magazines:-

Business world

The economic times

News papers:-

Business line

The Hindu

QUESTIONNAIRE

Name: …………………………………………….

Address: ……………………………………………

……………………………………………

1. What is your common mode of transport

[ ]

- 70 -



(a) Car (b) Bike (c) Auto (d) Bus (e) Others

2. Occupation

(a) Student (b) Employee (c) Profession (d) Business

3. Mention the different brands of bike you are aware of?

[ ]

_____________________________________

_____________________________________

_____________________________________

4. Are you aware of HERO HONDA bike?

[ ]

(a) Yes (b) No

5. How did you come to know about the HERO HONDA Splendor +?

[ ]

(a)News Paper (b) Television (c) Current Customer (d) Friends/Relatives

- 71 -



6. Do you own a motorcycle?

[ ]

(a) Yes (b) No

7. Which Brand of motorcycle do you own?

[ ]

(a)Pulsar (b) Splendor + (c) Shine (d) Victor (e) Others

8. Which among the below features/factors influenced you most in

purchasing of HERO HONDA Splendor +?

[ ]

(a) Price (b) Brand name (c) Design (d) Mileage (e) others

9. with which features of SPLENDOR + do you satisfy more?

[ ]

(a) Good Mileage (b) Pick- up (c) Design (d) Powerful Headlight (e) Perfect

Balance

10. How much mileage (kmpl) is your bike giving?

[ ]

- 72 -



(a) 40-50 (b) 50-60 (c) 60-70 (d) Above 70

11. Your expenditure on Splendor+ per month is

[ ]

a) Below 100 Rs. b) Rs.100-Rs.500 c) Rs.500-Rs.1000 d) Above 1000 Rs.

12. In future if you plan to purchase a motorcycle, which among the

following will you go for?

[ ]

(a) Pulsar (b) Splendor + (c) Victor (d) Shine (e) Others

13. In what way do you think Splendor + is better than other competitive

bikes?

[ ]

a) Brand loyalty b) Price c) Services d) Technology

- 73 -



14. How are the services offered by the Company?

[ ]

a) Excellent b) Good c) Average d) Poor e) Very poor

15. What Suggestions would you like to offer for its improvement?

____________________________________________________

____________________________________________________

____________________________________________________

16. Do you recommend HERO HONDA bike to your friends/relatives?

[ ]

(a) Yes (b) No (c) Can’t say

(Signature)

herohonda 2

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