Herohonda Profile

Introduction

The project is aimed at understanding the customer perception towards the vehicles of

Hero Honda ltd. The two- wheeler industry in India has grown to a great

extent in the last two and a half decades and it still has a vast growth potential

and a huge untapped market. Apart from this there is also a huge market for

the servicing of the vehicles. This is where the project aims to study the

customers’ mind and try to give out suggestions to improve the current

scenario pertaining to the various models, segments and classes of vehicles

from the house of Hero Honda.

Hero Honda is the market leader in the India two-wheeler industry and has a

substantive product line and a good serviceability. The study is aimed at

knowing the brand positioning, the strengths and weaknesses and the quality

of service from the Hero Honda service centres in Hyderabad. For this a

survey was conducted and the opinion of customers visiting these service

centers was taken in to consideration for the sake of this study. The

questionnaire consists of questions related to the qualitative and technical

aspects. The inferences are drawn out of the information received and

suggestion are made. Important and relevant data has also been analysed from

the internal sources like the company reports and other secondary sources like

Newspapers, magazines and the Internet.

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OBJECTIVIES OF STUDY

The study has been under taken to analyze the product performance of only hero Honda

motor cycles in twin cities with a special reference to the Hero Honda motors, the other

objectives are:

• To know the strengths and weakness of the Hero Honda motor cycles.

• To know the Perception towards Brand about the sales service offer to buy Hero

Honda motors.

• Brand names play an important role for launching of new product.

• To offer suggestions, in improving the product performance and the company

sales and profitability and image to increase the brand level.

SCOPE OF THE STUDY

• The study concentrates on the all aspects of customer perception towards Hero

Honda vehicle

• .No destination was made with regards to the segments for which a vehicle

belongs.

• The research study is made in10 Hero Honda service centers

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NEED OF THE STUDY.

• Companies need to monitor and improve the level of performance. The

higher the performance, the better the retention rate is.

• Thus the concept of performance analysis has gained a lot of importance to

the organization to gain the competitive advantage.

• If the organization provides a degree of performance that is above the

desired level, it results in customer delightedness and it ensures that the

person will return again and again.

RESEARCH METHODOLOGY

Two broad research methodologies can be used to answer any research

question. They are- Experimental research and Non experimental research. In

experimental research, there is control over the extraneous variables and

manipulation of at least one variable by the investigator. In Non experimental

research, there is no intervention beyond that needed for the purposes of

measurement.

The study uses Non experimental research method.

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RESEARCH DESIGN:

A research design is a statement or specification of the methods and procedures

used for acquiring the information needed for the solution of some specific problems.

It provides a scientific frame work for conducting a research.

Although research designs may be classified by many criteria, the most useful

one concerns the major purpose of the investigation. On this basis, research design

can be classified into three classes- Exploratory, Descriptive and Causal. If no formal

design or structural questionnaires are used, exploratory design is used. If a person is

conversant with the problem environment, or is conducting the research for some

specific purpose using structural questionnaire to gather information, the research

design is descriptive. Causal research design is used to establish cause and affect

relationships.

DATA COLLECTION METHODS

The following steps are involved in the data collection process:

1. Finding out the type of information required in the investigation process.

2. Establishing the facts that are available at present and the additional facts

required.

3. Identification of the sources from where the information can be available.

4. Selection of appropriate information collection method.

The data required from this study is collected from primary and secondary sources.

The data collected are both quantitative and qualitative.

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PRIMARY SOURCES

The primary source used for gathering data required for this survey is – Survey

method.

In the survey method a Survey of the consumer’s behavior towards two-

wheeler is done. A planned effort is made using structured questionnaires to

interview the respondents. The respondents are the owners of two-wheelers, who are

interviewed, are chosen using non probability sampling method. The surveys can be

done through personal interviews. In this study the respondents are interviewed

personally so that the errors involved in gathering the primary data are minimized.

SECONDARY SOURCES

The secondary sources used for collecting the data are:

1. Internal Sources

• Company reports.

• Company publications.

2. External Sources

• Business dailies like- The Economic Times, The Business Line etc.

• News papers like – The Times of India, The Indian Express and The

Hindu etc.

• Information was also gathered from magazines like- Business Today,

Business World, A&M etc.

• Other than these sources information was also gathered from internet.

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SAMPLE SIZE

The sample consists of 100 customers selected from the twin cities of

Hyderabad and Secunderabad using convenience sampling method. Out of the

customers selected fro the study, some did not own two-wheelers and some had not

responded well. Hence they had to be replaced by other customers.

LIMITATIONS

• Taking the market conditions into consideration the survey, which includes

a sample of 100, was a respective one.

• Due to the limitation of span of time and limited resource survey was

conducted for a period of 4 weeks.

• The geographic region covered for the survey was limited to only 10 Hero

Honda service centers.

• Since the survey was conducted at the residential localities and the person

who owns a Hero Honda Vehicle.

• Improper response from customers and buyers, but it was minimal.

• Scientific methods of post testing could not be conducted.

• Minimal possible bias in administrating the questions at the survey

conducted areas.

The reaction and attitudes are subjected to changes according to needs and time

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INDIAN TWO WHEELER INDUSTRY

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

Indian two-wheeler industry has got spectacular growth in the last few years. Indian

two-wheeler industry had a small beginning in the early 50's. The Automobile Products

of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being

scooters and mopeds. Indian companies are among the largest two-wheeler

manufacturers in the world. Hero Honda and Bajaj Auto are two of the Indian

companies that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid 1980s.

The openness of Indian market to foreign companies leads to the arrival of new models

of two-wheelers into India. Easy availability of loans from the banks, relatively low

rate of interest and the discount of prices offered by the dealers and manufacturers lead

to the increasing demand for two-wheeler vehicles in India. This lead to the strong

growth of Indian automobile industry.

Kinetic Honda was introduced in the Indian market during the mid 80s. The

main feature of Kinetic Honda is its ease of use. This helped the youngsters and the

women to buy scooters

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Key players in the Two-wheeler Industry:

After facing its worst recession during the early 1990s, the two-wheeler industry

bounced back with a 25% increase in volume sales in February 1995. The scooters are

considered as family vehicles. There are many two-wheeler manufacturers in India.

Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj

Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company Ltd

(KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India Ltd

(Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda

Motorcycle & Scooter India (P) .

Types of Two-wheelers in India:

There are mainly three types of two-wheelers available in India. They are Motorcycles,

Scooters and Scooterettes/Mopeds.

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Motorcycles in India:

Bikes comprise a major segment of Indian two wheeler industry.

Company: HERO HONDA

* Hero Honda Achiever

* Hero Honda CD Dawn

* Hero Honda CD Deluxe

* Hero Honda Glamour

* Hero Honda Glamour-Fi

* Hero Honda Karizma

* Hero Honda Passion Plus

* Hero Honda Pleasure

* Hero Honda Super Splendor

* Hero Honda Splendor NXG

* Hero Honda CBZ X-Treme

Company: Bajaj Auto Ltd

* Bajaj Avenger

* Bajaj CT 100

* Bajaj Platina

* Bajaj Discover DTSi

* Bajaj Pulsar DTSi

* Bajaj Wave

* Bajaj Wind 125

* Sonic DTSi

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Company: Kinetic Motor Company

* Kinetic Aquila

* Kinetic Boss

* Kinetic Challenger

* Kinetic Comet

* Kinetic GF

* Kinetic Stryker

* Kinetic Velocity

Company: TVS MOTOR

* TVS Apache

* TVS Centra

* TVS Fiero

* TVS Star

* TVS Victor

Company: Yamaha Motor India

* Yamaha Cruxes

* Yamaha G5

* Yamaha Gladiator

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Scooters in India:

The scooter and the scooterette share in the Indian two wheeler market is 13.4%. The

main models available in India are Bajaj Chetek, Honda Eterno, Kinetic Blaze, LML

NV SPL and LML Select II.

Scooterettes/Mopeds:

TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS also

launched India's first indigenous scooterette: Scooty in 1994. This segment has about

one-fourth share in the Indian two wheeler industry. The major models available in

India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure,

Kinetic Kline, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic

King 100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda

Activa, TVS Scooty and TVS XL.

Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile

sector that has undergone significant changes due to shift in policy environment. The

two-wheeler industry has been in existence in the country since 1955. It consists of

three segments viz. scooters, motorcycles and mopeds. According to the figures

published by SIAM, the share of two-wheelers in automobile sector in terms of units

sold was about 80 per cent during 2003-¬04. This high figure itself is suggestive of the

importance of the sector. In the initial years, entry of firms, capacity expansion, choice

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of products including capacity mix and technology, all critical areas of functioning of

an industry, were effectively controlled by the State machinery. The lapses in the

system had invited fresh policy options that came into being in late sixties. Amongst

these policies, Monopolies and Restrictive Trade Practices (MRTP) and Foreign

Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign

investment respectively. This controlling mechanism over the industry resulted in: (a)

several firms operating below minimum scale of efficiency; (b) under-utilisation of

capacity; and (c) usage of outdated technology. Recognition of the damaging effects of

licensing and fettering policies led to initiation of reforms, which ultimately took a

more prominent shape with the introduction of the New Economic Policy (NEP) in

1985.

However, the major set of reforms was launched in the year 1991 in response to the

major macroeconomic crisis faced by the economy. The industrial policies shifted from

a regime of regulation and tight control to a more liberalised and competitive era. Two

major results of policy changes during these years in two-wheeler industry were that

the, weaker players died out giving way to the new entrants and superior products and a

sizeable increase in number of brands entered the market that compelled the firms to

compete on the basis of product attributes. Finally, the two-¬wheeler industry in the

country has been able to witness a proliferation of brands with introduction of new

technology as well as increase in number of players. However, with various policy

measures undertaken in order to increase the competition, though the degree of

concentration has been lessened over time, deregulation of the industry has not really

resulted in higher level of competition.

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A Growth Perspective

The composition of the two-wheeler industry has witnessed sea changes in the post-

reform period. In 1991, the share of scooters was about 50 per cent of the total 2-

wheeler demand in the Indian market. Motorcycle and moped had been experiencing

almost equal level of shares in the total number of two-wheelers. In 2003-04, the share

of motorcycles increased to 78 per cent of the total two-wheelers while the shares of

scooters and mopeds declined to the level of 16 and 6 per cent respectively. A clear

picture of the motorcycle segment's gaining importance during this period is exhibited

by the Figures 1, 2 and 3 depicting total sales, share and annual growth during the

period 1993-94 through 2003-04.

TWO WHEELERS PRODUCTION TREND

Category 2001-02 2002-03 2003-04 2004-05 2005-06Scooters 937506 848434

935279 987498 1020013

Motorcycles 2906323 3876175 4355168 5193894 6201214Mopeds 427498 351612 332294 348437 379574Grand Total 4271327 5076221 5622741 6529829 7600801

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TWO WHEELERS DOMESTIC SALES TREND

Category 2001-02 2002-03 2003-04 2004-05 2005-06

Scooters 908268 825648 886295 922428 908159

Motorcycles 2887194 3647493 4170445 4964753 5815417

Mopeds 408263 338985 307509 322584 332741

Grand Total 4203725 4812126 5364249 6209765 7056317

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HERO HONDA COMPANY PROFILE

“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.

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

Over 19 million Hero Honda two wheelers tread Indian roads today. These are

almost as many as the number of people in Finland , Ireland and Sweden put together!

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. This festive

season, the company sold half a million two wheelers in a single month-a feat

unparalleled in global automotive history.

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 3.9 million bikes per year. A third state of the art

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manufacturing facility at Hardwar in Uttranchal will soon be commissioned to cope

with sustained customer demand.

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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History

Hero Honda is world’s biggest two wheeler maker. India has the largest

number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30

percent automobiles and 70 percent two wheelers in the country. India was the second

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

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

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

through the turn of the century from its association with Piaggio of Italy (manufacturer

of Vespa scooters).

The license raj that existed between the 1940s to 1980s in India did not allow

foreign companies to enter the market and imports were tightly controlled. This

regulatory maze, before the economic liberalization, made business easier for local

players to have a seller’s market. Customers in India were forced to wait 12 years to

buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a

marketing department, only a dispatch department. By the year 1990, Bajaj had a

waiting list that was twenty-six times its annual output for scooters.

The motorcycle segment had the same long wait times with three manufacturers: Royal

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

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

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

of the market respectively.

In the mid-1980s, the Indian government regulations changed and permitted

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

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

Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda). The entry of

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these foreign companies changed the Indian market dynamics from the supply side to

the demand side. With a larger selection of two-

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

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

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

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

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

The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at

108.

Growth

Hero Honda experienced great growth throughout its early days. The Munjal

family started a modest business of bicycle components. By 2002 Hero Group had sold

86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an

assembly line of nine different models of motorcycles available. It holds the record for

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

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

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

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

scooter manufacturing, with its model PLEASURE mainly aimed at girls. HUNK is the

latest offering from the HHML stable

Just-in-Time Manufacturing

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The Hero Group through the Hero Cycles Division was the first to introduce

the concept of just-in-time manufacturing. The Group boasts of superb operational

efficiencies. Every assembly line worker operates two machines simultaneously to save

time and improve productivity. The fact that most of the machines are either developed

or fabricated in-house, has resulted in low inventory levels.

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

since the beginning of production in the unit. This is the Japanese style of production.

In India, Hero is probably the only company to have mastered the art of the just-in-time

inventory principle.

Ancillarisation

An integral part of the Group strategy of doing business differently was

providing support to ancillary units. There are over 300 ancillary units today, whose

production is dedicated to Hero's requirements and also a large number of other

vendors, which include some of the better known companies in the automotive

segment.

Labor relations

In Hero Group there is no organized labor union and family members of

employees find ready employment within Hero. The philosophy with regard to labor

management is "Hero is growing, grow with Hero." Hero workers receive a uniform

allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance

(LTA). Extra benefits include medical check-ups not just for workers, but also for the

immediate family members. For the majority of the production workers, who are hired

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through contractors, these benefits are out of reach. This and other problems lead to a

strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring

2006.

Diversification

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

actively looked at diversification. A considerable level of vertical integration in its

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

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

Castings, Munjal Auto Components and Munjal Showa Limited amongst other

component-manufacturing units.

Then there were the expansion into the automotive segment with the setting

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

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

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

Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 100 cc

motorcycles.

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

financial services, information technology, which includes customer response services

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

Telecommunication.

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

close watch on costs and the dynamic leadership of the Group Chairman, characterized

by a culture of entrepreneurship, of right attitudes and building stronger relationships

with investors, partners, vendors and dealers and customers.

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BOARD OF DIRECTORS

No. Name of the Directors Category of Directorship

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

2 Mr. Pawan Munjal Managing Director

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Yutaka Kudo Whole-time 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. Takashi Nagai Non-executive Director

9 Mr. Narinder Nath Vohra Non-executive & Independent Director

10 Mr. Pradeep Dinodia Non-executive & Independent Director

11 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director

12 Mr. Analjit Singh Non-executive & Independent Director

13 Dr. Pritam Singh Non-executive & Independent Director

14 Ms. Shobhana Bhartia Non-executive & Independent Director

15 Mr. Sunil Bharti Mittal Non-executive & Independent Director

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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.

KEY 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

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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

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 Programmed" - CRM Programmed 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 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

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

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2006 Hero Honda is the World No. 1 for the 5th year in a row

PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

2008 NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

• No.1 executive motorcycle Splendor NXG

• 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" - Glamout PGM FI

"Auto Tech of the Year" - Glamout 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.

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

Customer Awards 2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian

Two Wheeler Company)

One of the 8 Indian companies to enter the Forbes top 200 list of 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 2006:

• 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 Wallstreet Journal Asia (Top Indian

Two Wheeler Company)

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

Bradstreet - American Express Corporate Awards 2006

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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

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)

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

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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 Rank

amongst the top 10 Indian companies)

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 Rank

amongst the top 10 Indian companies)

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 Asiamoney

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

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1999 National Productivity Award for the Best Productivity Award in the category of

Automobile & Tractor presented by Vice President of India

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

9th amongst the most investor rewarding companies in India

1995 National Award for outstanding contribution to the Development of Indian

Small Scale Industry (NSIC Award - Presented by President of India)

1991 Economic Times-Harvard Business School Award for Corporate Performance

to Hero Honda Motors Ltd.

29

BRIEF PROFILE OF HEROHONDA

Company name :Hero Honda Motors Ltd.

Type :Public company BSE:HEROHONDA M

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

Revenue :U$ 2.8 billion ^

Website :www.Herohonda.com

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Profile of Phoenix Motors

Phoenix Motors PVT.LTD, is dealership type of business. PHOENIX MOTORS

PVT.LTD, is established on 21st March 2003. The business is running by only one

man. The owner name is CH.Madhumati. The firm is located at Habsiguda in

Hyderabad. Generally the sale will be either in cash basis or institutional basis like

ICICI, HDFC and CENTURIAN are providing loans to customers.

Advertisement strategy of Phoenix Motors:

They are giving the ads through news papers, wall paintings, hoardings and field staff.

They are upgrading sales by introducing the schemes group booking, institutional sales

and customer door to door activity.

Categorization of staff members:

Staff members are categorized for technicians, is members are allotted for field staff, 5

members are recruited for sales persons, 5 persons. The for evaluating for spare party,

5members are allotted for managerial accounts and another 3 persons for cash

transactions and other members for managerial accounts and another 3 persons for cash

transactions an other members are allocated for remaining work.

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Customer relationship

To entertain the customers the showroom provides ahuge having pool game, internet

facility and television with home theater system. They provide bike maintenance

programs on every week.

Phoenix motors is first in service and the best in service. They treat

customer is the very important person at phoenix motors. Customer’s satisfaction is

their motto, why because the well satisfied customer is the best advertisement. They

provide better value for tee customers as well as employees also. At phoenix motors

“the customer is the boss”

Sales strategy of phoenix motors

Averagely they are selling 25 vehicles per day. V PVT> LTD is the A.P’s No 1

dealership in sale and other activities. It is a QLAD (Quality leader through quality

dealer)

At phoenix motors they give the quality service to the customers because “ the cost is

long forgotten but the quality is remembered forever”.

32

PRODUCT PERFORMANCE

Product Performance Analytics provides powerful analytic capabilities and

presents a single, unified view of information through a web-based business

dashboard.

Product Performance Analytics enables brand, category, and product managers to:

Optimize Product Ranges: Your products do not exist in isolation and Product

Performance Analytics provides new insight into performance across lines,

categories, and brands. With Product Performance Analytics, you can track market

share and sales history to identify which products you should continue to invest in

and allocate space to. You can navigate product hierarchies to perform analysis at any

level and analyze product mixes to identify gaps that need to be filled and products

that should be de-listed.

Improve Brand Performance: Are your brand sales on track to meet your revenue

or volume objectives? With Product Performance Analytics, you can discover what

brands are growing faster than others, classify brands by volume growth, and track

brand performance against targets. Product Performance Analytics allows brand

managers to benchmark brand performance and highlight exceptional performance.

Maximize Product Profitability: Which products are the most profitable? Product

Performance Analytics provides the insight to understand which product is the most

profitable while recognizing that that products and categories will perform differently

through different channels. Improve profitability by identifying top performing

channels, which products sell well in each channel, and what other products may also

sell well in the channel.

33

What does a performance analyst do?

Here's a list of some of the things as a part of a performance analysis:

• Interviewing a sponsor

• Reading the annual report

• Chatting at lunch with a group of customer service representatives

• Reading the organization's policy on customer service, focusing particularly on

the recognition and incentive aspects

• listening to audiotapes associates with customer service complaints

• leading a focus group with supervisors

• Interviewing some randomly drawn representatives

• Reviewing the call log

• Reading an article in a professional journal on the subject of customer service

performance improvement

• Chatting at the supermarket with somebody who is a customer, who wants to

tell you about her experience with customer service

34

ANALYSIS AND INTERPRETATION

1 .What is your vehicle model?

Vehicle Model No, of vehicles PercentagePassion plus 48 48Splender plus 16 16CBZ X-Treme 11 11Hunk 8 8Glamour 5 5Karezma 4 4CD-100 3 3Ambition 2 2Splender NXG 1 1CD-Deluxe 1 1Pleasure 1 1

35

48%

16%

11%

8%5%

4%

3%

2%

1%

1%

1%

Pasion plus

Splender plus

CBZ X-Treme

Hunk

Glamour

Karezma

CD-100

Ambition

Splender NXG

CD-Deluxe

Pleasure

36

48%

16%

11%

8%5%

4%

3%

2%

1%

1%

1%

Pasion plus

Splender plus

CBZ X-Treme

Hunk

Glamour

Karezma

CD-100

Ambition

Splender NXG

CD-Deluxe

Pleasure

Interpretation:

• From the study it’s clear that majority of respondents are having Passion Plus

bikes.

• The major reason behind choosing passion plus rather than other Hero Honda

brands is its mileage.

37

2. (A). What is your first bike?

Vehicle Model No, Of Vehicles PercentageSplender plus 9 31Passion plus 4 13CD-100 3 10Pulsar 3 10Kinetic Honda 2 7Bajaj Chetek 2 7TVS Suzuki 2 7TVS Sambran 1 3LML 1 3Boxer 1 3YEZDI 1 3CBZ X-Treme 1 3

38

31%

13%

10%10%

7%

7%

7%

3%3%

3%3% 3%

Splender plus

Passion plus

CD-100

Pulsar

Kanatic Honda

Bajaj Chethek

TVS Sujiki

TVS Sambran

LML

Boxer

Yezdi

CBZ X-Treme

Interpretation:

• Around 70% Of The Bike Users Prefer Hero Honda Bike As Their First Time.

• The remaining of the respondents shifted from other brands bikes to Hero

Honda bikes.

39

• The reasons mileage, brand image, design of bikes.

40

2. (B) if you are changed from other brand by what reason you changed it?

Reasons No: of vehicles PercentageMileage 14 46Design 12 40Brand 3 10Others(more power) 1 4

14

12

3

1

0

2

4

6

8

10

12

14

16

Mileage Design Brand Others(morepower)

Series1

Interpretation:

• From the above study it’s clear that the majority of respondents shifted

other brand to hero Honda brands.

• The respondents shifted from brand’s to hero Honda brand the main

reasons are mileage & design.

41

3. How long are you using this bike?

53

1713

17

0

10

20

30

40

50

60

Series1 53 17 13 17

<1year 1-2 years 2-3 years >3years

Interpretation:

• The most of the respondents are using their bikes from the last one year.

Duration No of respondents Percentage

<1 year 53 53

1-2 years 17 17

2-3 years 13 13

>3years 17 17

42

4. What are

the reasons

for choosing

this bike?

Reasons

No; Of

Respondents Percentage

Brand 46 46

Mileage 26 26

Design 21 21

Price 7 7

Others( ) 0 0

No; Of Respondents

Brand, 46

Mileage, 26

Design, 21

Price, 7Others ( ),

0 Brand

Mileage

Design

Price

Others ( )

43

Interpretation:

• The majority of respondents are choosing the Hero Honda bikes because of its

brand image.

• The remaining respondents choosing the Hero Honda bikes because it’s

mileage, design & price

5. How much mileage are you getting from your bike?

Mileage (in km) No Of Respondents Percentage21-30 3 331-40 11 1141-50 26 2651-60 38 3861-70 19 1971-80 2 281-90 1 1

44

Interpretation:

• The most of the respondents are getting (51-60) km mileage from their bikes.

• The second majority of respondents are getting (41-50) km.

6. (A) Are you satisfied with your bike mileage?

Mileage (in Km) No of responds PercentageYes 79 79No 21 21

3

11

26

38

19

2 1

0

5

10

15

20

25

30

35

40

21-30 31-40 41-50 51-60 61-70 71-80 81-90

Series1

45

79

21

0

10

20

30

40

50

60

70

80

90

Yes No

Series1

Interpretation:

• The majority of respondents are satisfied with the mileage of bikes.

• The remaining respondents are not satisfied with mileage.

6. (B) If No: How much mileage you are expecting?

Mileage (in Km) No of responds Percentage31-40 1 541-50 3 1451-60 6 2960-70 11 52

46

5%

14%

29%

52%

31-40

41-50

51-60

61-70

Interpretation:

• The majority of respondents are expecting the mileage of bikes around

(61-70) km.

• The followed by majority of respondents are expecting (52-60) km

mileage of the bikes.

7. Are you impressed by the bike design?

Response No of respondents PercentageYes 98 98No 2 2

47

98

2

0

10

20

30

40

50

60

70

80

90

100

Yes No

Series1

If no reasons

1. Head light problem

2. Comfort of bike

Interpretation:

• All most total member of respondents is impressed by bike design.

• The negligible respondents are not impressed by bike design.

8. Are you satisfied with comfort of bike?

Response No of responds Percentage

Yes 97 97

No 3 3

48

97%

3%

Yes

No

If no reasons

1. less capacity

2. seating problem

3. seat is not good

Interpretation:

• The most of the respondents are satisfied with their comfort ability of bike.

49

9. How would you rate your bike pick up?

Response NO, Of respondents percentageVery

good 9 9

Good 56 56

Average 27 27

Bad 6 6

Very bad 2 2

50

Interpretation:

• Majority of respondents are rated their bike pick-up has well.

10. At which service center your bike is being serviced?

NO, of respondents

9

56

27

6 20102030405060

VeryGood

Average VeryBad

NO, OfRespondents

51

97%

3%

Authorized

Unauthorized

Interpretation:

• Most of the respondents are prefer to get their bike service at authorized centers.

Service centers No of respondents Percentage

Authorized 97 97

Unauthorized 3 3

52

53

11. How is the after sales service?

Reasons No, Of

Respondents

Percentage

Very good 8 8

Good 58 58

Average 22 22

Bad 10 10

Very bad 2 2

Interpretation:

• Majority of respondents are rated the after sales service of Hero Honda as good.

12. Are you satisfied with availability of spare parts?

No, Of Respondents

8

58

22

102

Very good

Good

Average

Bad

Very bad

Response No Of Respondents Percentage

Yes 94 94

No 6 6

54

94

60

10

20

30

40

50

60

70

80

90

100

Yes No

Series1

Interpretation:

• Most of the respondents are satisfied with the availability of spare parts.

• That parts are Provided by Hero Honda.

55

1. Finally how you rate your bike?

No, Of Respondents

55

34

6

3

2

0 20 40 60

Very good

Good

Average

Bad

Very bad

No, OfRespondents

Interpretation:

• Majority of respondents are rated the whole service of Hero Honda as very

good.

• Remaining respondents are rated the service good& average

Response

No, Of

Respondents Percentage

Very good 55 55

Good 34 34

Average 6 6

Bad 3 3

Very bad 2 2

56

14. Will you recommend hero Honda to your friends?

95

5

0

10

20

30

40

50

60

70

80

90

100

Yes No

Series1

Interpretation:

• From the above data it’s clear that most of the respondents recommended the

Hero Honda bikes to his friends.

Response No Of Respondents Percentage

Yes 95 95

No 5 5

57

15. Any comments/suggestions to Hero Honda-----------------

• Required more pick-up & mileage

• To improve the quality of the service

• Comfortable designing

• Lack of guidance 7 attention on customers

• Availability of spare parts

• Seating problem

• Improvement in head light facility

• Reliability

58

CONCLUSIONS:

• Brand name play vital role in the customer perception.

• Most of the respondents choose Hero Honda bikes, because it’s mileage &

design.

• Most of the respondents are satisfied with the whole performance of the

Hero Honda vehicles.

• 95% of the respondents will recommend the Hero Honda bikes to their

friends.

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SUGGESTIONS & RECOMMENDATIONS

After analyzing the findings, the following suggestions have been prepared. Great care

has been taken in making this suggestion for the improvement of customer satisfaction

• There is a heavy demand for Hero Honda motor cycles in the market, so there

supply has drastically improved so as to meet the demand of the customers

• The prices of some of the Hero Honda motor cycles are high which are

considered to be not suitable for the Indian economy that is not affordable by the

middle class people.

• The company should keep updating the models of bikes and keep adding the

new features to the bikes in order to face the competition from the competitors and

company should concentrate on pickup.

• The after sale services has to be improved and make availability of servicing

centers even in rural areas so as to face the competition existing in the motor cycle

segments.

• Though the majority of the customers are satisfied with the timings of the

workshop, it is suggested to have 24*7 services

• The satisfaction level is in the area of GOOD only it may further improve to the

level of very good and excellent

• Some of people are not satisfied about bike mileage. They are expecting around

(60-70) km

• So improve the mileage of the bikes.

• Few respondents are not satisfied with the seat facility. Improve seat problem of

those models.

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• Some people are not satisfied the availability of spare parts, & rate of spare

parts at the authorized service centers. Give the discount on all spare parts at

authorized service centers.

• Most of the youth respondents are expecting stylish models with better mileage.

FINDINGS

• Majority of respondents choose their Hero Honda bikes because of its brand

image in the market & mileage.

• From the study it’s clear that majority of respondents are having Passion Plus

bikes

• The major reason behind choosing passion plus rather than other Hero Honda

brands is its mileage or any other thing.

• Around 70% Of The Bike Users Prefer Hero Honda Bike As Their First Time.

Because they are trust Hero Honda bikes.

• Most of the respondents shifted from other brands bike s to Hero Honda bikes

because of its brand image.

• The most of the respondents are getting (51-60) km mileage from their bikes

• Around 79% of respondents are satisfied with the mileage of bikes.

• Almost the total no; of the respondents are satisfied their design of the bikes.

So best design bikes provided by Hero Honda Company, according to customer

perception.

• Majority of Hero Honda bike customers satisfied their seat comfort ness.

• Most of respondents satisfied their pick up of the bikes, because Hero Honda

provides best pick up bikes.

61

• Most of the prefer authorized service centers, because their quality of service.

• Majority of respondents satisfied the availability of spare parts at authorized

service centers, because authorized service centers provide guaranteed spare

parts.

• Majority of respondents are rated the whole service of Hero Honda as very

good.

• In all Hero Honda bikes CBZ X Treme was best looking bike, because of its

design & pick up.

62

NAME: M. RAMAKRISHNA RAJU

COLLEGE: BADRUKA COLLEGE OF PG CENTRE.

Project Title: “Customer Perception towards Performance of Hero Honda Motor

Cycle”

Personnel Profile:

Name: _____________________

Designation: ____________________Ph:___________

1. What is your vehicle model? _________________

2. (a)what is your first bike________________

(b) If you are changed from other brand by what reason you changed

it________________

3. How long are you using this bike?

<1 year [ ] 1-2 year [ ] 2-3 year [ ] >3year [ ]

4. What are the reasons for choosing this bike?

Brand [ ] Mileage [ ] Design [ ] Price [ ] Others [ ]

5. How much mileage you are getting from your bike?

6. Are you satisfied with your bike mileage?

Yes [ ] No [ ]

If No: How much mileage you are expecting?

63

7. Are you impressed by the bike design? Yes [ ] No [ ]

If No: Reason:

8. Are you satisfied with comfort of bike? Yes [ ] No [ ]

If No: Reason:

9. How would you rate your bike pick up?

Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ]

10. At which service center your bike being serviced?

Authorized [ ] Unauthorized [ ]

11. How is the after sales service?

Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ]

12. Are you satisfied with availability of spare parts?

Yes [ ] No [ ]

13 .finally how you rate your bike?

Very good [ ] Good [ ] Average [ ] Bad [ ] Very bad [ ]

14. Will you recommend hero Honda to your friends yes [ ] no [ ]

15. Any comments/suggestions to Hero Honda______________________

(Signature of the candidate)

“THANK YOU”

64

BIBLIOGRAPHY

1. MARKETING MANAGEMENT : PHILIP KOTLER

2. MARKETING RESEARCH : G.C. BERRI

D.D.SHARMA

3. CONSUMER BEHAVIOUR : LOUDON & DELLA BITTA

SCHIFFMAN&KANUK

4. WEB SITE : www.HeroHonda.com

5. SEARCH ENGINE : www.Google.com

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