INTRODUCTION Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. A Nations economy is well known from its transport system. For instant and rapid growth in economy, a well-developed and well-networked transportation system is essential. As India's transport network is developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of Automobile Industry is very essential in Indian economy. Various types of vehicles are manufactured by the Automobile 1
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Project Report on Impact of Promotional Tools in Selling Hero Honda Bikes
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INTRODUCTION
Automobile is one of the largest industries in global market. Being the leader in
product and process technologies in the manufacturing sector, it has been
recognized as one of the drivers of economic growth. During the last decade, well
directed efforts have been made to provide a new look to the automobile
policy for realizing the sector's full potential for the economy. Aggressive
marketing by the auto finance companies have also played a significant role in
boosting automobile demand, especially from the population in the middle
income group.
A Nations economy is well known from its transport system. For instant and rapid
growth in economy, a well-developed and well-networked transportation system
is essential. As India's transport network is developing at a fast pace, Indian
Automobile Industry is growing too. Also, the Automobile industry has strong
backward and forward linkages and hence provides employment to a large section
of the population. Thus the role of Automobile Industry is very essential in Indian
economy. Various types of vehicles are manufactured by the Automobile
Industry. Indian Automobile Industry includes the manufacturing of trucks, buses,
passenger cars, defense vehicles, two-wheelers.
The two-wheeler manufacturing is dominated by companies like Hero Honda
TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Yamaha, Bajaj, etc.
The automobile industry in the country is one of the key sectors of the economy
in terms of the employment opportunities that it offers. The industry directly
employs close to around 0.2 million people and indirectly employs around 10
million people. The prospects of the industry also has a bearing on the auto-
component industry which is also a major sector in the Indian economy directly
employing 0.25 million people.
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All is not well with the automobile industry the world over currently with the
slowdown that has gripped most of the major economies of the world. The gap
between the manufacturing capacity volume and the assembly volume is growing
by the day and has worried the manufacturers. This state of affairs has triggered a
lot of cut-throat competition and consolidation in the industry. Cost reduction
initiatives have come to be the in thing in the global industry today. Towards this
direction, many automobile factories are being closed down. The Indian
automobile industry is a stark contrast to the global industry due to many of the
characteristics, which are peculiar to India. The Indian automobile industry is
very small in comparison to the global industry. Except for two wheelers and
tractors segments, the Indian industry cannot boast of big volumes vis-à-vis global
numbers.
OVERVIEW OF TWO WHEELER SECTOR
Two Wheeler Industry
The Indian two wheeler contributes the largest volumes amongst all the segments
in automobile industry. Though the segment can be broadly categorized into 3
sub-segments viz.; scooters, motorcycles and mopeds; some categories introduced
in the market are a combination of two or more segments e.g. scooterettes and
step-thru’s. In the last four to five years, the two-wheeler market has witnessed a
marked shift towards motorcycles at the expense of scooters. In the rural areas,
consumers have come to prefer sturdier bikes to withstand the bad road
conditions. In the process the share of motorcycle segment has grown from 48%
to 58%, the share of scooters declined drastically from 33% to 25%, while that of
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mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro
emission norms effective from April 2000 led to the existing players in the two-
stroke segment to install catalytic converters. All the new models are now being
replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced
from 32% to 24%, resulting in price reduction, which has aided in propelling the
demand for motorcycles.
Within the two-wheeler industry, motorcycle segment grew at a phenomenally
high rate of 35% as against a deceleration of 3% for scooters and 27% for
mopeds.
In fact, motorcycle has been taking away the share of scooters and mopeds in a
4.3 million two-wheeler market and surging ahead with its market share of 68%.
The increasing demand from semi-urban and rural segments may have caused this
positive shift towards motorcycles. Also, easy credit coupled with low interest
rate regime, constrained personal transport, increasing income levels in middle
class and higher aspirations of young people all seem to be the factors responsible
for such high growth in two-wheelers. The growth in two-wheelers has been
robust enough to counter the slow down and other factors constraining the overall
business activity in the country. Also, rationalization of excise duty in the Union
Budget 2002-03 had a positive impact on the demand for motorcycles. We also
expect the motorcycles to continue to lead the two-wheeler segment like in all
other Asian countries. Available forecasts suggest that this trend would continue
for another couple of years and the industry would record nearly double-digit
average annual growth up to 2006.
During the year, there have been important developments in two-wheeler
industry. The competition has strengthened though there are hardly any new
entrants into the industry. There is an increasing emphasis on price and this has
led to cost cutting efforts all across the industry, thereby, making the customer an
ultimate beneficiary. The trend also saw introduction of new motorcycles with
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capacity ranging from 100 to 180cc bikes. We anticipate that many more new
models will be launched during the year and provide customers plenty of choice
at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each
business has a tendency to taper and plateau after attaining a particular size. An
annual growth rate of 10-12 percent over a period of time is extremely healthy.
The TCS study rankings are conducted at the motorcycle segment-level to provide
comparisons among similar groups of motorcycles. Motorcycles ranking highest
in the irrespective segments for TCS are: Hero Honda CD100 SS (best standard
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
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New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced
2006 Hero Honda is the World No. 1 for the 5th year in a row
15 million production milestone achieved
2007 Hero Honda is the World No. 1 for the 6th year in a row
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
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched
New 'Glamour Fi' launched
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2009 Hero Honda GoodLife Program launched
Hunk' (Limited Edition) launched
Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations.
PRODUCT POSITIONING:
The product of Hero Honda is classified into following 3 segments:
ECONOMY SEGMENT:
The characteristics of products from this segment focus on basic
transportation from one point to another. The emphasis is on fuel efficiency and
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comfort. The promotion strategies used in this segment can be discussed through
the following products :
CD DAWN
“Public ka naya transport”& “value naye zamane ki”
Through this campaign the company tries to position this product as a basic
means of transport at an affordable price. Value for money and fuel efficiency are
the core focus areas of the product.
CD Deluxe “Jiyo deluxe……..chalo deluxe”
The main focus of promotion campaigns for CD Deluxe is on style and a true
Value for 100cc motorcycle.
CD 100SS
“Tough and rugged”
This product represents toughness. The ability to handle even off-road, dirt
conditions with ease is its main USP. It is basically meant for the rural market.
EXECUTIVE SEGMENT:
The promotion strategies used in this segment can be discussed through the
following products:
SPLENDOR
“Designed to excel”
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The ad shows a blind man identifying the product and assuring its quality. This
shows the blind faith that people have in this bike. It also promotes the Splendor
as the world’s best selling motorcycle which got better with the Splendor Plus
model.
PASSION
“When style matters more”
Though this product shares the same engine as that of Splendor it differs on the
styling front. It is targeted at young urban male who want a stylish and attractive
looking vehicle without compromising in fuel efficiency. In the starting it came
up with an add campaign of “born in a studio not in a factory” but later it has
modified it to “when style matters more”
SUPER SPLENDOR
“Sarva guna sampanna”
Super Splendor is another product which company launched very recently. It
promotes itself by saying “Sarva guna sampanna” means something that is good
at everything. The design is a derivative version of splendor and it uses an 125 cc
engine. Company claims it to be better than splendor in all respect including
power and fuel efficiency. Hero Honda believed some of those 100cc bike owners
would eventually shift to higher segments in the long run. So it wants to retain all
these Splendor buyers with in Hero Honda by providing a higher version of
Splendor.
GLAMOUR
“Leave the G life”
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The Glamour is a brand new bike from the Hero Honda stable. Though it is yet to
be launched, all the pre-launch promotions and specifications suggest that it is an
attempt to gain some of the lost market share in the 125 cc upper-end executive
segment. Super Splendor and Glamour will operate in the same mechanism in the
125 cc segment as that of Splendor and Passion in 100 cc segment.
CBZ
“Motorcycling unplugged”
CBZ was the first sports bike launched by Hero Honda in India. It was targeted at
those customers who have a passion for style and speed. This is one of the most
stable bikes at high speeds.
KARIZMA
“Jet set go”
Karizma was targeted at a niche segment. It was a premium segment bike for
those people who can afford to pay a few extra rupees for the unmatched style and
speed. Karizma was positioned as a total pleasure bike. Hrithik Roshan is the
brand for this premium segment two wheeler product from Hero Honda.
SALES PROMOTION STRATEGIES AT DEALER LEVEL:
The company follows various strategies for sales promotion. Some of the methods
involved at the Dealer level are:
I. Test Drives for prospective customers.
II.Sponsorship Schemes for customers in association with HDFC and ICICI
banks.
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III. Advertisement in showrooms on a company-dealer 50-50 basis partnership.
IV.Mobile Vans in remote areas for customer services i.e. after sales service.
V.Periodic rural fairs and to showcase the company models for prospective
buyers.
VI.Musical Nights conducted at important cities with a view to promote products.
ADVERTISING STRATEGIES:
The company mainly uses Billboards and signboards at major business
districts and major routes. Newspaper and TV advertisements to improve
consumer recall are also very prevalent. At the dealership level, the customers are
sent promotional material in the form of leaflets to initiate further contact and
increase customer awareness.
SALES REPORT OF HERO HONDA
The country's largest two-wheeler maker Hero Honda reported its highest ever
sales for a month in March at 5,15,852 units, registering a jump of 24.41 per cent.
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The company had sold 4,14,638 units during the same month of last year, Hero
Honda Motors Ltd (HHML) said in a statement. For the entire 2010-11 fiscal,
HHML crossed 50-lakh sales mark by dispatching a cumulative sales of
54,02,444 units as against 46,00,130 units in the previous fiscal, up Hero Honda
the world’s no. 1 two wheeler company has posted growth of 24.41% in the
month of March 2011 compared to March 2010. The company has
sold 5,15,852 units of two wheeler in the month of March 2011 compared
to 4,14,638 units of two wheeler sold in the month of March 2010. This is by far
company’s highest ever sales in current financial year. The previous highest ever
sales of 5,05,553 units in October 2010.
This is the eleventh consecutive month where Hero Honda has sold more than 4
lakh units and the third time more than 5 lakh plus sale in the current financial
year. On the month on month basis the sale is up by 9.28%. The company
sold 4,72,055 units in the month of February 2011. Hero Honda has
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sold54,02,444 units during April 2010 to March 2011 period up 17.44%
compared to 46,00,130 units sold in the same period last year.
Hero Honda Motors Managing Director and CEO Pawan Munjal said “We are
delighted with this year’s sales performance, far surpassing our initial guidance of
5 million. Our growth rate is reflective of our strategic and marketing prowess,
which has ensured the sustained market leadership.”
He also said “Hero Honda initiated strategic and structural changes this fiscal,
which will begin to take effect in the near future. We are confident that our
initiatives will allow us to build on our leadership position. We will actively look
at exploring opportunities in newer markets, establishing a new brand identity and
further enhancing our in-house resources”
The company is in final stage for the announcement of 4 th plant. Currently
company’s three operational plants have 5.6 million units capacity. The company
is running at its optimum capacity to satisfied demand. As expected the
company’s has started selling 5 lakh plus units from this month. In this financial
year the company bought Honda Motor Corporation’s 26% for Rs. 3,841.83 crore.
During this fiscal, the company has launched seven new models including
variants and refreshes, across various segments.
Summary
The Indian two wheeler industry’s growth rate remains intact. The period April
2010 to March 2011 has witnessed growth of 26.76% over the same period last
year. More than 13.25 million units of two wheelers sold during the period of
April 2010 to March 2011 compared to 10.45 million units in the same period last
year.
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Hero Honda the market leader is continuously posting double digit growth after
Diwali. It has done 5.4 million units sales in the current financial year. Bajaj Auto
the second largest manufacturer of two wheelers has sold close to 3.4 million
units in the current financial year.
TVS Motors has sold more than 2.01 million units whereas HMSI sales stood at
1.66 million units during April 2010 to March 2011 period. Yamaha India, Suzuki
Motorcycle and Mahindra two wheelers sold 0.37 million, 0.28 million and 0.16
million units respectively during the period of April 2010 to March 2010. Going
ahead we will continuously have double digit growth in two wheeler industry
despite fuel price hike and rising price of two wheelers as there are several new
product launches in pipeline for next 6 month. But the growth rate will come
down in next financial year and upcoming months.
Last year was the first-ever calendar year when the company's monthly sales crossed the 3-lakh mark in each of the 12 months.
HIGHLIGHTS OF HERO HONDA FOR THE PAST 3 YEARS:
Highlights of Q1, FY’08-09
Total sales for Q1 stands at 8,94,244 units, growth of 11 per cent
Near 55 per cent share in domestic motorcycle market
New manufacturing plant at Haridwar, Uttarakhand, starts production
Total turnover Rs 2890 crores, growth of 16 per cent
Net profit after tax at Rs 273 crores, growth of 44 per cent
EBIDTA margin for the quarter 11.99 per cent
Highlights of Q2, FY'08-09
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Total turnover (Net sales & Other Operating income) Rs 3202 crores,
growth of 35.6 per cent
Net profit after tax at Rs 306.30 crores, growth of 50 per cent
EBIDTA margin for the quarter 13.58 per cent
Total sales for Q2 stands at 9,72,095 units , growth of 28.5 per cent
Total sales for H1 stands at 18, 66,349, growth of 19.7 per cent
Over 55 per cent share in domestic motorcycle market
Launches first-of-its kind music video to celebrate 25 years of Hero
Honda
Highlights of Q3, FY'08-09
Corporate Performance:
Total turnover (Net sales & Other Operating income) Rs 2881.27 crores,
growth of 4.77 per cent
Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent
EBIDTA margin for the quarter 14.47 per cent, up from 13.58 per cent in
previous quarter (July-September’08)
Financial Results for Q4, FY'08-09
Total sales for Q4 stands at 9,97,855 units, growth of 13 per cent, three
times that of the industry growth during the period
Total turnover (Net Sales & Operating Income) Rs.3422.52 crores, growth
of 22.24 per cent
Net profit after tax at Rs 402.17 crores, growth of 34.64 per cent
EBIDTA margin for the quarter 16.04 per cent
Financial Results for FY'09
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Total unit sales of 37.22 lakh two-wheelers, growth of 12 per cent, more
than double that of the industry growth during the period
Total turnover (Net Sales & Operating Income) of Rs. 12356.88 crores
Net profit after tax at Rs. 1281.76 crores
Dividend of 1000 per cent
EBIDTA margin for the year 14.16 per cent
EPS of Rs. 64.19/-
Highlights of Q1, FY'09-10
Total turnover (Net sales & Other Operating income) Rs. 3822.44 crores,
growth of 34 per cent
Net profit after tax at Rs. 500.11 crores, growth of 83 per cent
EBIDTA margin for the quarter 17 per cent
Total sales for Q1 stands at 11,18,987 units, growth of 25 per cent
Over 59 per cent share in domestic motorcycle market
Highlights of Q2, FY'09-10
Total turnover (Net sales & Other Operating income) Rs. 4059.44 crores,
growth of 26.8 per cent
Net profit after tax at Rs. 597.14 crores, growth of 94.9 per cent
EBIDTA margin for the quarter 18.33 per cent
Total sales for Q2 stands at 11,83,235 units, growth of 21.7 per cent
Over 59 per cent share in domestic motorcycle market
Highlights of Q3, FY'09-10
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Total turnover (Net sales & Other Operating income) 3827.03 crores,
growth of 32.82 per cent
Net profit after tax at Rs. 535.77 crores, growth of 78.34 per cent
EBIDTA margin for the quarter 17.27 per cent
Total sales for Q3 stands at 11,11,372 units, growth of 29.56 per cent
Third consecutive quarter with more than a million units in sales
Financial Results for Q4, FY’10
Total sales for Q4 stands at 11,86,536 units, growth of 18.9 per cent
Total turnover (Net sales and other operating income) Rs. 4122.32 crores,
growth of 20.2 per cent
Net profit after tax at Rs. 598.8 crores, growth of 48.9 per cent
EBIDTA margin for the quarter 17.2 per cent
Financial Results for FY’10
Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
Total turnover (Net sales and other operating income) of Rs. 15860.51
Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of
Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent
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Highlights of Q1, FY’10-11
Total cumulative sales for Q1 FY10-11 stands at 12,34,039 units, growth
of 10 per cent
Total turnover (Net Sales & Other Operating income) Rs 4296.61crores
Net profit after tax at Rs. 491.69 crores
EBIDTA margin for the quarter 14 per cent
Fifth consecutive quarter of million-plus unit sales
Highlights of Q2, FY’10-11
Total cumulative sales for Q2 FY10-11 stands at 12,85,944 units, growth
of 9 per cent
25lakh plus unit sales in H1 of FY’11, growth of 9.4 per cent
Total turnover (Net Sales & Other Operating income) Rs 4551.95 crores
Net profit after tax at Rs. 505.60 crores
EBIDTA margin for the quarter 13.36 per cent
Launches the all-new Splendor Pro and the New Super Splendor
HERO HONDA REPORTS TURNOVER OF RS. 5161.66 CRORE FOR Q3’ IN
FY’11
PBT STANDS AT RS 508.03 CRORE & PAT STANDS AT RS. 429.00
CRORE
EBIDTA MARGIN FOR THE QUARTER AT 11.17 PER CENT
TOTAL SALES FOR Q3 FY’11 STANDS AT 14,28,030 UNITS,
GROWTH OF 28.49PER CENT
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SEVENTH CONSECUTIVE QUARTER WITH MORE THAN A
MILLION UNITS IN SALES.
Impact of promotional tools on sales/ (A case study of Hero Honda bikes at SRI SRI SRI Automobiles).
QUESTIONAIRE
Dear respondent, Please share your views on the following questions. This is part of
project of my M.B.A programme. The information provided by you will be kept confidential.
NAME: PROFESSION:
PLACE: MOBILE NO:
1) Which age range do you fall into?a) 18-25 ( )b) 26-35c) 36-45
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d) 45 and above
2) What kind of advertising do you find to be the most powerful?a) Print mediab) Electronic media ( )
c) Hoardings d) Specify if any other.…………………
3) Do you think advertising influences you?a) Less than others ( )b) More than others c) About the same as others
4) Do you think advertising of Hero Honda bikes makes you aware of the bike?
a) Yes ( )b) NoIf (yes/no) please specify…………………………………..
5) Do you think advertising shows impact on sales?a) Yes ( )b) NoIf (yes/no) please specify….……………………………….
6) Which model bike do you own?a) Passion pro ( )b) Splendor plusc) Hunk d) Cd-deluxe
7) What made you to opt for Hero Honda bike?a) Advertisements ( )b) Referencesc) Self-interestd) Others
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8) From the below, mention the source you have gathered the details about the bike. ( )
a) Magazines b) Broachers c) Exhibitions d) OthersIf others specify…………………………
9) Which promotion tool do you think will give more sales?a) Price offs ( )b) Discounts c) Trade shows d) Warranties
10) Are promotional activities necessary for selling a bike?a) Yes b) no ( )
11) Which promotion tool made you to purchase the bike?a) Coupons ( ) b) Price offsc) Warranties d) Test drivese) exchange
12) Is it mandatory for you to have a test drive before purchasing?a) Yes b) no ( )
13) Do social media help in promoting Hero Honda, like?a) Face book ( )b) Twitterc) Others
14) From the below mention the effective promotional strategies?a) Marketing through articles on the net ( )b) Product review promotion
15) Does your purchase decision changes if dealer doesn’t give any offer like free insurance.
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a) Yes b) no ( )If (yes) specify………………………….
DATE: (SIGNATURE)
THANK YOU
Impact of promotional tools on sales / (A case study on Hero Honda bikes at SRI SRI SRI Automobiles).
PIE- CHART REPRESENTATION
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INTERPRETATION:
The above pie-chart represents that the customers of age 15-26 are more in number than the other age groups.
1) Which age range do you fall into?
26-3532%
36-4518%
45 and above
6%
15-2644%
15-2626-3536-4545 and above
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INTERPRETATION:
From the above representation, it is understood that advertising through electronic media is most powerful.
2) What kind of advertising do you find is the most powerful?
print media12%
electronic media60%
hoardings 4%
Others
24%print media
electronic media
hoardings
Others
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INTERPRETATION:
Here, it represents that advertising influence on customers is more .
3) Do you think advertising influences you ?
less than others34%
more than others54%
about the same as
others12% less than others
more than others
about the same asothers
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4) Do you think advertising of Hero Honda bikes makes you aware of the
bikes?
yes 78%
no 22%
yes
no
INTERPRETATION:
Advertising makes 78% of the customers aware of Hero Honda bikes, that means the impact of advertising is more.
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5) Do you think advertising shows impact on sales?
yes66%
no34%
yes
no
INTERPRETATION:
Maximum number of respondents (i.e.66%) says that there is impact on sales due to advertising. And the remaining 34% say that there is no impact on sales.
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6) Which model bike do you own?
passion plus 32%
splender plus48%
hunk 8%
cd delux12%
passion plus
splender plus
hunk
cd delux
INTERPRETATION:
Most of the customers (i.e.66%) own splender plus, 32% of the customers own passion plus. And the remaining % the other bikes.
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7) What made you to opt for hero honda bike?
advertisements
18%
references30%
self interest 52%
advertisements
references
self interest
INTERPRETATION:
Out of 100, 52% of the customers purchased Hero Honda bikes of their self interest, 30% of the customers due to references and 18% by seeing advertisements.
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INTERPRETATION:
28% of the customers gathered the details of Hero Honda bike through magazines. 23% of the customers through brouchers, 21% of the customer by attending exhibitions, and the remaining 28% of the customers through other sources
8) From the below mention the source you have gathered the details of the
bike?
magazines28%
brouchers21%
exhibitions23%
others28%
magazines
brouchers
exhibitions
others
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9) Which promotional tool do you think will give more sales?
price offs 24%
discounts32%
trade shows6%
warranties38%
price offs
discounts
trade shows
warranties
INTERPRETATION:
The above pie-chart represents that the sales will be more if warranties are given. the % of customers who opt for warranties is 38%.and for discounts is 32%, for price offs 24% and trade shows 6%.
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10) Are promotional activities necessary in selling a bike?
yes , 84%
no, 16%
yes
no
INTERPRETATION:
Maximum number of respondents says that promotional activities are necessary for selling a bike. i.e. (84%).
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11) Which promotional tool made you to purchase the bike?
coupons54%
price offs12%
warranties22%
test drives 8%
exchange4%
coupons
price offs
warranties
test drives
exchange
INTERPRETATION:
54% of the customers purchased their bikes because of only coupons.22% of the customers, of warranties12% of the customers, of price offs 8% of the customers have taken a test drive and4% of the customers because of exchange offer provided by the dealers.
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12) Is it mandatory for you to have a test drive before purchasing?
yes 70%
no30%
yes
no
INTERPRETATION:
Most of the people go for a test drive before purchasing a bike.In this study 70% say yes and 30% of the customers say no.
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13) Do social media help in promoting Hero Honda like ?
Face book 20%
Twitter2%
Others78%
Face book
Twitter
Others
INTERPRETATION:
There is no much impact of social media in promoting a bike. Most of the customers are influenced by their friends .
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INTERPRETATION:
Product review promotion is the effective promotional strategy as 90% of the respondents gave a positive note on it.
14) From the below mention the effective promotional strategies?
marketing through
articles on the net 10%
product review
promotion90%
marketing througharticles on the net
product review promotion
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15) Does your purchase decisions changes if dealer does'nt give any offer like free insurance?
yes18%
no82%
yes
no
INTERPRETATION:
82% of the customers say that the purchase decision won’t change if the
dealer doesn’t give any offer and the remaining 18% shows that the purchase
decision changes.
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SURVEY FINDINGS:
The consumer prefers Hero Honda in terms of quality and reliability. Hero Honda
enjoys a very strong brand image and brand loyalty. But the company should not
get complacent as a better product from the competitor will dilute the company’s
brand image. It was found that only a small number of consumers came to the
dealers due to its sales promotion. This indicates that there is a scope for
improvement in sales promotion other than free gifts and discounts as it was not
an attractive proposition for their buying decision.
• Customers only stated that promotional activities bring an impact on sales but
most of them are not much influenced by the promotional activities to buy a bike.
• Most of the consumers go for the Hero Honda bikes because of its safe design.
• Hero Honda technology is very innovative so customers like to take it.
• A very high segment of youth goes for the name and goodwill of the Hero
Honda.
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SUGGESTIONS:
• The company should provide free services to its customers in comparison to its
competitors.
• More financing option should be provided such as loans and credits.
• The company should provide more customer value.
• Follow up should be increased.
• Effort should be done for developing the concept of good relationship with
consumers.
• Dealers should encourage its customers by giving discount, providing 0%
interest loan schemes, prices, coupons etc.
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BIBLIOGRAPHY
I have used the following source for finding the data
http: www.herohonda.com http: www.google.com http: www.wikipedia.org Philip Kotler, Marketing Management,Literature from the web sitehttp://www.herohonda.advertisment.pro.coreproduct.org