Project Synopsis Mktg

8/4/2019 Project Synopsis Mktg

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PROJECT SYNOPSIS

By N.Suryanarayana Rao

Enrolment No: 093815680

MBA (Marketing)

IGNOU,Hyderabad Centre



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PROJECT TITLE:

A Study report on “CONSUMAR BUYING BEHAVIOUR OF

HERO HONDA” at Hyderabad.

Introduction

The demand for two- wheelers in India is dependent upon factors like

availability of finance, increase in income levels, and restricted growth in public

transportation and movement in petrol prices. Expect petrol prices, all other factors

have positive correlation affects the demand for two-wheelers, due to the increase in

the running cost of a vehicle.

Two-wheelers are distinguished on different factors for different consumer

segment. For example high- powered two- wheelers have a niche market as racing /

sporting vehicles and have a special appeal to youngsters. Teenagers and women

prefer easy maneuverability / handing ease. Fuel efficiency and low maintenance

lure urbanities. The lower end of the market looks for durability, value for money

and higher resale value.



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The motorcycle is being increasingly used youngsters / bachelors in urban

areas and by rural folk as a study means of personal transportation. Bigger wheels,

better road grip, higher ground clearance, power, fuel efficiency, low maintenance

cost are the major attraction of this segment.

Over the past few years, the two- wheelers market has witnessed a major shift

from scooter to motorbikes.

However, the young boys, who want to assert themselves in their friend circle

and want to make a statement about their young personality, are purchasing high-

powered bikes.

The middle class youth especially those in marketing and jobs are mostly

buying Hero Honda. In fact, the young couples and bachelors are going for bikes for

their good average and speed. Youngsters feel that it helps make good impression on

girls when you have motorcycles.

The market experts admit that it is the lean period for sale of bikes as well

as scooters. They say that the sales usually pick up at the end of financial year or

during festival season, when the companies offer some discounts or freebies. Despite

increasing heat of the competition, the Hero Honda is still trying to hold the 100cc

market through splendor and passion models.



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The dealers say that the Hero Honda bikes are more preferred by educated

urban youth and executives to the rural ties, where the financiers are not ready to

risks due to in fluttering and difficulty to calculate agriculture incomes.

The customer says that the manufactures would have to share the profits

with consumers instead of just relying on advertising campaign. The entry of

Chinese bikes, which could force them to cut down prices, may have been stalled by

higher duties for time being, but it cannot be postponed forever. They would have

come up with more fuel efficient and cheap models that still determining factors to

boost sales.

Style and economy offered by the motorcycles manufacturing companies are

what has given a fillip to the motorbike segment. With this, the market today is

witnessing the entry of a large number of innovative models, the latest ones being

karizmas (230cc 4 stroke) by Hero Honda, cruiser Thunderbird (350cc 4 stroke) by

Royal Enfield, pulsar (150cc 4 stroke) by bajaj and various others.

It is primarily those between age groups of 16 years and 40 years who form

the major user segment for motorbikes. Preferences differ – a majority voting for

looks.

Hero Honda which claims 47 percent of the market share has two best sellers –

splendor the four stroke bike (100cc) and CBZ (150cc) that have captured the market

for quite long, once again due to looks and fuel economy. Other popular bikes by the



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company are passion a hot favorite because of the style, look and fuel economy it

offers says Brij Inder Singh, sales manager, Hero Honda, “despite the price

differentials between motorcycles and scooters not

being too high, having a motorcycle gives one the feeling of up gradation”. He also

attributes the growth of this segment to the initiatives being taken by the companies

including more introductions in the economy class bikes and easy financing facilities.

Consumers Buyer Behaviour:

Consumer buyer behaviour is influenced by four keys sets of buyer

characteristics; cultural, social, personal, and psychological. Although many of these

factors cannot be influenced by the marketer, they can be useful in identifying

interested buyers and in shaping products and appeals to severe consumer needs

better. Culture3 is the most basic determinant of a person’s wants and behavior. It

includes the basic values, perceptions, preference, and behavior \s that a person learns

from family and other important instructions. Subcultures are “cultures within

cultures” that have a distinct values and lifestyles and can be based on anything from

age to ethnicity. People with different culture and sub culture characteristics have

different product and brand preferences. As a result, marketers may want to faces

their marketing programs on the special needs of certain groups.



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Social factors influence buyer’s behavior. A person’s reference group-family,

friends, social organizations, professional associations- strongly affect product and

brand choices. The buyer’s age, life-cycle stage, occupation, economic

circumstances, lifestyle, personality, and other personal. Characteristics influence his

or her buying decisions. Consumer life-styles the pattern of acting and interacting in

the world are also important influences on purchase decisions.

Finally, consumer-buying behavior is influenced by four major psychological

factors- motivation, perception, learning, and beliefs and attitudes. Each of these

factors provides a different perspective for understanding the workings of the buyer’s

black box.

MODEL OF CONSUMER BEHAVIOR



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Consumer purchases are influenced strongly by or there are four factors.

01. External Factor

02Internal Factor

03. Marketing Factor



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Factors Affecting Consumer Behavior:

Marketers do not want their target audience to look only at the models in their ads.

They want to communicate something about their products as well. Marketers often

Buyer

Psychological

Personal

Social

Culture



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use attractive models,humour, other factors to attract the target market’s interest.

Information processing is a series of activities by which stimuli are perceived,

transformed in to information, and stored. Information processing model has four

major steps or stages a)Exposure b) Attention c)Interpretation d) Memory



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Why Consumers Buy

As we discussed in the what is marketing? Customers make purchases in order

to satisfy needs. Some of these needs are basic and must be filled by everyone

on the planet (e.g., food, shelter) while others are not required for basic survival

and vary depending on the person. It probably makes more sense to classify

needs that are not a necessity as wants or desires. In fact, in many countries

where the standard of living is very high, a large portion of the population’s

income is spent on wants and desires rather than on basic needs.

In this tutorial when we mention the consumer we are referring to the actual

buyer, the person spending the money. But is should also be pointed out that the

one who does the buying is not necessarily the user of what is bought and that

others may be involved in the buying decision in addition to the actual buyer.

While the purchasing process in the consumer market is not as complex as the

business market, having multiple people involved in a purchase decision is not

unusual. For example, in planning for a family vacation the mother may make

the hotel reservations but others in the family may have input on the hotel

choice. Similarly, a father may purchase snacks at the grocery store but his

young child may be the one who selected it from the store shelf.

http://www.knowthis.com/principles-of-marketing-tutorials/what-is-marketing/





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So understanding consumer purchase behavior involves not only understanding

how decisions are made but also understanding the dynamics that influence

purchases.

What Influences Purchasing

As we discussed the decision-making process for consumers is anything but

straight forward. There are many factors that can affect this process as a person

works through the purchase decision. The number of potential influences on

consumer behavior is limitless. However, marketers are well served to

understand the KEY influences. By doing so they may be in a position to tailor

their marketing efforts to take advantage of these influences in a way that will

satisfy the consumer and the marketer (remember this is a key part of the

definition of marketing).

For the purposes of this tutorial we will break these influences down into three

main categories: Internal, External and Marketing. However, those interested in

learning more about customer buying activity may want to consult one or more

consumer behavior books where they will find additional methods for

explaining consumer buying behavior.

For the most part the influences are not mutually exclusive. Instead, they are all

interconnected and, as we will see, work together to form who we are and how

we behave.



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For each of the influences that are discussed we will provide a basic description

and also suggest its implication to marketers. Bear in mind we only provide a

few marketing implications for each influence; clearly there are many more.

NEED OF THE STUDY:

Customers consider various factors for purchasing a motorcycle. The

factors they consider are based on certain demographic variables such as

income, age, occupation etc. It also depends on attributes and lifestyle of the

customer buying behavior becomes essential to get a competitive edge.

OBJECTIVES OF THE STUDY

Primary Objective: The main objective of the study is to study the buying

motives of the customers regarding two wheelers w.r.t Hero Honda.

Secondary Objectives

1. To know the influence of demographic factors on consumer buying behavior

of Hero Honda.

2. To know the brand performance of Hero Honda on consumers.

3. To know the buying motives of purchasing Hero Honda.

RESEARCH METHODOLOGY:

Research Design:

The research design used for this project is exploratory and descriptive. The

exploratory research was conducted using secondary data.



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The descriptive research was conducted through personal interviews with

respondent using questionnaire.

Secondary Data:

Secondary data are those, which are collected from existing data.

Secondary data for this study include appropriate material from newspaper,

Magazines, Broachers, Company Reports, Standard Text Books, and

information from Internet has also been acquired wherever necessary.

Primary Data:

Primary data are those, which are collected fresh and for the first time and

this happen to be original in character. In this study primary data was collected

through conducting interview using questionnaire.

Sampling Design:

A research design is a logical and systematic plan prepared for directing a

research study it specifies the methodology and technique to be adopted for

achieving the objectives. It constitutes the blueprint for the collection,

measurement and analysis of data.



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The main aim of the study is to evaluate the brand image of Hero Honda. The

study is descriptive in nature. Surveys are best-suited method for descriptive

research. So survey method is used for the study.

The preparation of a research plan for a study aids in establishing direction to

the study and knowing exactly what has to be done and how and when it has to

be done at every stage.

A research plan describes the boundaries of research activities and enables the

research to channel his energies in the right work. With clear research

objectives, in view the research can proceed systematically towards his

achievements.

Sampling Procedures:

Sampling is a systematic approach for selecting a few elements from an

entire collection of units (population) in order to make some inference about the

total population it is a small specimen or a segment of the whole population

representing its general qualities as for as possible. The study is to be

undertaken by convenience sampling.

Convenience sampling is a non-profitability sampling. T means selecting

sample units in just hit and misses fashion i.e., interviewing people whom you

happen to meet.

Sampling Unit:



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The survey is to be conducted using two wheelers only.

Sampling Frame:

The population for the study consists of Hero Honda bike owners in the

cities of Hyderabad and secunderabad.

Sampling Size:

The study is conducted on a sample of 100 respondents.

DATA ANALYSIS:

The instrument used for this study is an interview schedule. Questions

related to objectives of the study from the major portion of the interview

schedule. It mainly consists of multiple-choice questions so that the

respondents can mark one or more of the several choice of answers. Secondary

data has been gathered from many published sources such as Newspapers,

Journals, Magazines, Company Reports, standard textbooks and information

from Internet has also been acquired wherever necessary.



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The Data analysis will be done by using various Statitical tools such as

cross-tables, Charts, Graphs and Chi-square techniques.

SCOPE OF THE STUDY

The study is aimed at finding out the consumer’s opinion towards Hero Motor Bikes

The researcher has taken up 100 samples for the study, in Hyderabad city. The

study would reveal the intensity of gap between company’s deliverance and the

consumer’s expectation. The revelation of the study would keep the company

informed about the consumer’s Buying Behaviors towards the Motor bikes and try to

come up solutions to the problems faced during purchasing and post purchasing of

Hero Motor Bikes.

LIMITATIONS OF THE STUDY

a) The Research was conducted in this of Hyderabad and secunderabad.

b) The sample size limited to 100.

c) The views and purpose of respondent may change on the period of time.

d) The Duration of project is limited to 60 days.



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SCOPE FOR FURTHER RESEARCH:

There is always a scope for the Hero Honda Bikes to enter the new level with

innovative technologies, improved services and Customer Relationship

Practices. As the other competitors are entering the market with variant models

in 100cc, 125cc and 150cc segments, there the scope and potential for Hero

Honda to capture each segment with majority of share by studying the behavior

of the consumers with utmost perfection and come up with the solutions that

enhances customer loyalty and satisfaction.

Project Synopsis Mktg

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