Customer Relationship Management

CONTENTS PAGE No.

CHAPTER 1 1.0 1.1 1.2 1.3 1.4

01 INTRODUCTION OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY SAMPLE SIZE LIMITATION

CHAPTER 2 2.0

14 OVERVIEW OF LITERATURE

CHAPTER-3 3.0 3.1 3.2 3.3

25 COMPANY PROFILE INDUSTRY PROFILE PRODUCTS PROFILE DEALER PROFILE

CHAPTER-4 4.0

57 DATA ANALYSIS

CHAPTER-5 5.0 5.1 5.2 ANNEXURE:

79 FINDING SUGGESTIONS CONCLUTION QUESTIONNAIRE BIBLIOGROPHY

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CHAPTER - I

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INTRODUCTION

1.1. CUSTOMER RELATIONSHIP MANAGEMENT Customer relationship management is perhaps the most important concept of modern marketing. Until recently CRM has been defined narrowly as a customer data management activity. By this definition, it involves managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty.

More recently, however, customer relationship management has taken on a broader meaning. In this broader sense, customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.

RELATIONSHIP BUILDING BLOCKS: CUSTOMER VALUE AND SATISFACTION The key to building lasting customer relationships is to create superior customer value and satisfaction. Satisfied customers are more likely to be loyal customer and to give the company a larger share of their business.

CUSTOMER VALUE attracting and retaining customers can be a difficult task.

Customers often face a bewildering array of products and services from which to choose.

A customer buys from the firm that offers the highest customer perceived value the customer’s evaluation of the difference between all the benefits and all the benefits and all the costs of a marketing offer relative to those of competing offers.

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CUSTOMER SATISFACTION customer satisfaction depends on the products perceived performance relative to a buyer expectation. If the products performance falls short of expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted.

Outstanding marketing companies go out of their way to keep important customers satisfied. Highly satisfied customers make repeat purchases and tell other about their good experiences with the product. The key is match customer expectation with company performance. Smart companies aim to delight customers aim to delight customers by promising only what they can deliver, then delivering more than they promise.

However, although the customer centered firm seeks to deliver high customer satisfaction relative to competitors, it does not attempt to maximize customer satisfaction. A company can always increase customer satisfaction by lowering its price or increasing its services. But this may result in lower profits. Thus the purpose of marketing is to generate customer value profitably.

This requires a very delicate

balance: the marketer must continue to generate more customer value and satisfaction but not “give away the house”.

CAPTURING VALUE FROM CUSTOMERS The first four steps in the marketing process involve building customer relationships by creating and delivering superior customer value. The final step involves capturing value in return, in the form of current and future sales, market share, and profits. By creating superior customer value, the firm creates highly satisfied customers who stay loyal and buy more. This, in turn, means greater long run returns for the firm.

Her, we discuss the outcomes of creating customer value: customer loyality and retention, share of market and share of customer, and customer equity.

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CREATING CUSTOMER LOYALTY AND RETENTION Good customer relationship management creates customer delight.

In turn,

delighted customers remain loyal and talk favorable to others about the company and its products. Studies show big differences in the loyalty of customers who are less satisfied, some what satisfied, and completely satisfied. Even a slight drop from complete satisfaction can create an enormous drop in loyalty.

Thus the aim of customer

relationship management is to create not just customer satisfaction, but customer delight.

Companies are realizing that losing a customer means losing more than a single sale. It means losing the entire stream of purchases that the customer would make over a lifetime of patronage. For example, here is a dramatic illustration of customer lifetime value: GROWING SHARE OF CUSTOMER Beyond simply retaining good customers to capture customer life time value, good customer relationship management can help marketers to increase their share of customer the share they get of the customers purchasing in their product categories.

Many marketers are now spending less time figuring out how to increase share of market and more time trying to grow share of customer. Thus banks want to increase” share of wallet” supermarkets and restaurants want to get more share of stomach car companies want to increase share of garage and airlines want greater share of travel .

BUILDING CUSTOMER EQUITY We can now see the importance of not just acquiring customers, but of keeping and growing them as well. Customer relationship management takes a long term view.

Companies want not only to create profitable customers, but to “own” them for life., capture their customer lifetime value, and earn a greater share of their purchases.

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WHAT IS MARKETING Marketing, more than any other business function deals with customers.

Although we will soon explore more-detailed definitions of marketing, perhaps the simplest definition is this one: Marketing is managing profitable customer relationships.

The twofold goal of marketing is to attract new customers by promising superior value and to keep and grow current customers by delivering satisfaction.

Wal-Mart has become the world Largest retailer, and the worlds largest company, by delivering its promise,” Always low prices. Always! “ At Disney theme parks ”imaginers” work wonders in their quest to “ make a dream come true today.” Dell , leads the personal computer industry by consistently making good on its promise to “be direct” Dell makes it easy for customers to customer design their own computer and have them delivered quickly to their doorsteps or desktops. These and other highly successful companies know that if they take care of their customers, market share and profits will follow.

Sound marketing is critical to the success of every organization. Large for-profit firms such as procter & Gamble, Sony, Wall-mart, IBM, and Marriott use marketing.

But so do not for profit organizations such as colleges, hospitals, museums, symphony orchestras, and even churches.

MARKETING DEFINED What is marketing? Many people think of marketing only as selling and advertising and wonder every day we are bombarded with television commercials, direct ail offers, sales calls, and internet pitches. However, selling and advertising are only the tip of the marketing iceberg.

Today marketing must be understood not in the old sense of making a sale” telling and selling” but in the new sense of satisfying customers needs. If the marketer does a good job of understanding consumer needs; develops products that provide superior value; and prices distributes, and promotes them effectively these products will sell very easily. Thus, selling and advertising are only part of a larger “marketing mix” a set of marketing tools that work together to satisfy customer needs and build customer needs and build customer relationships.

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Broadly defined, marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others.

In a narrower business context marketing involves building

profitable, value laden exchange relationships with customers.

Hence, we define

marketing as the process by which companies create value for customer and build strong customer relationship In order to capture value fro customers in return.

Customer value and satisfaction Consumers usually face a broad array of products and services that might satisfy a given need. How do they choose among many marketing offers? Customers form expectations about the value and satisfaction that various marketing offers will deliver and buy accordingly satisfied customer buy again and tell others about their good experiences.

Dissatisfied customers often switch to competitors and disparage the

product to others.

Marketers must be careful to set the right level of expectations. If they set expectations too high, buyers will be disappointed.

Customer value and customer

satisfaction are key building blocks for developing and managing customer relationships.

We will revisit these core concepts later in the chapter.

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OBJECTIVE OF THE STUDY:  The main objective was to study the customer behavior towards motor vehicle with special reference to Hero Honda motor cycles in the district of Hyderabad. The Various sub objectives were to find out the following:  To study the various methods of customer awareness regarding the product, PASSION Plus.  To find the market share of Passion plus according to the segmentation.  To find the ways to develop better relationship with the customers.  To find the source of awareness regarding the bike in the customers mind.  To find the tough competitors for the Passion plus in the market.  The factors affecting the customers buying decision regarding the purchase of motor Cycles.  The buyer’s opinion on the after sales services and attributes offered by the Passion plus manufacturing motorcycles.  To the customers preferences towards two wheelers.  To the satisfaction levels of customers about after sale service.

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RESEARCH METHODOLOGY: The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Developing the Research plan For collecting Information

Defining the Problem and Research Objectives

Implementing the Research planCollecting and Analyzing the data

Interpreting and reporting the findings

DEFINING THE PROBLEM: Defining the problem and research objectives is often the hardest step in the research process.

The marketing problem on which the survey is expected to focus should be clearly defined. Before this clear definition is possible, it may be necessary to undertake some exploratory research into certain aspects of the client's business. Example, the sale organization methods of publicity, distribution arrangements etc., in an attempt to pinpoint areas of significance of the inquiry. Preparatory work of nature carried out conscientiously and objectively, is an essential element in the systematic study of marketing problems. Management and researchers should work closely together in this crucial task of developing survey objectives.

DEVELOPEING RESEARCH PLAN: A research design is purely and simply the frame work of plan for a study that guides the collection and analysis of the data. It is a map or blue print according to which the research is to be collected. The research design specifies the methods for data collection and data analysis.

The researcher specifically pinpoints that to carry out the research properly.

1. How the data be collected.

2. Which instruments for data collection would be used, and

3. What sampling plan would be used?

The researcher has to carefully decide and make a choice from the group of different alternatives available to him.

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FIELD WORK/DATA COLLECTION: This stage will be central point of the research activities. An effective sampling plan would have been devised in stage two and the efficiencies of various methods of collecting data would have been evaluated. At this stage, the survey methodology has to be put into proactive. Since time constraints an inevitable, it would be advisable to plan operations on a time schedule. Since so much of the efficiency of the company research progress depends on reliable and valid data being gathered by research, activities during this stage of research should be carefully planned and executed.

DATA ANALYSIS AND EVALUATION: The data analysis and evaluation of the fourth step in the Research process. The data are first edited, ceded and tabulated for the purpose of analyzing them. The editing, coding and tabulating is a most when the interviewer has amassed a huge amount of data concerning the Research project at hand. The analysis can be conducted by using simple statistical tools like percentages, averages and measures dispersion. The collected data may be analyzed by using diagrams, graphs, charts, picture Etc., Finally meaning data may be extracted from the analysis thus conducted.

REPORTS PRESENTATION: The last state in the research process should be done thoroughly. During the preceding stage research will be planning how to present their findings. Tables, graphs and other diagram data to illustrate the principle findings of the researchers.

RESEARCH INSTRUMENTS Marketing research has a choice of two mail research instruments in collecting the primary data. They are questionnaires and mechanical devices.

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QUESTIONNAIRE It is a formalized instrument for asking information directly from the respondent concerning behavior, demographic characteristics, level of knowledge and or attitude, belief, and feelings. Because of its flexibility, it is by and large the most common instrument used to collect the primary data.

Questionnaires contain two types of questions or a combination of Closed-End questions and Open-End questions. Closed-end questions include all the possible answers, and subjects make choices among them.

Open-end questions allow respondents to answer in their own words. In this research I used Closed-end questions and Open-end questions. In Closed-end I used multiple choice questions, Rating scale question and Dichotomous questions.

SAMPLING DESIGN After deciding the research approach and instruments research must design the sample from which the data is to be collected. Thus, the research has to decide whether he will conduct a census or a sample survey to collect the data needed for his study.

In this project sample survey method has been taken i.e. only a portion of whole population is surveyed.

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SAMPLING SIZE Sampling size is the number of people being surveyed. In my research, 50 consumers are my sample size.

SAMPLING PROCEDURE In my survey, I selected consumers randomly in the petroleum outlet who visited for their two-wheelers. Therefore, it is random sample.

CONTACT METHOD Once the sampling plan has been determined, marketing research must decide how the consumer should be contacted. The choices are mail, telephone or personal interview.

In my research I had done personal interviewing. It is most versatile of the three methods because we can ask more questions and can record additional observations about the respondent.

SECONDARY DATA: It is the data were collected for another purpose and already existing.

Secondary data provide a starting point for research and offer the advantage of low cost and ready availability. The various sources from which secondary data is collected are 1. Company profile and records.

2. Magazines.

3. News papers 4. Reference books related to subject.

The sample size of survey is only 100 respondents.

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LIMITATIONS:

In undertaking the study, the researcher encountered certain problems. Firstly, the respondents were not available readily and the data collected as per the convenience of the respondents. Secondly, the organizational policies had its influence on the respondent’s opinions at the time of collection of data. Thirdly, the limitations of sampling had an effect on the study as it was concentrating on a particular segment of organizations.

The sample size is restricted to 100 respondents only.  Due to certain constraints, the survey is limited to the twin cities to Hyderabad and Secunderabad.  The survey cannot be generalized to rural areas as it is limited to twin cities only.  Some respondents did not provide the requisite information pertaining to the questionnaire.

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CHAPTER - II

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OVERVIEW OF LITERATURE CUSTOMER RELATIONSHIP MANAGEMENT The concept of relationship marketing was first coined by Berry in 1983. He considered it to consist of attracting, maintaining and enhancing customer relationships within organizations. In the years that followed, companies were engaging more and more in a meaningful dialogue with individual customers. In doing so, new organizational forms as well as technologies where used, eventually resulting in what we know as Customer Relationship Marketing (CRM). The main difference between RM and CRM is that the first does not acknowledge the use of technology, where the latter uses Information Technology (IT) in implementing RM strategies.

Customer relationship management (CRM) is a customer-centric business strategy with the goal of maximizing profitability, revenue, and customer satisfaction.

Technologies that support this business purpose include the capture, storage and analysis of customer, vendor, partner, and internal process information. Functions that support this business purpose include sales, marketing, customer service, training, professional development,

performance

management,

human

resource

development,

and

compensation. Technology to support CRM initiatives must be integrated as part of an overall customer-centric strategy. Many CRM initiatives have failed because implementation was limited to software installation without alignment to a customercentric strategy.

The essence of CRM The exact meaning of CRM is still subject of heavy discussions. However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis. Underlying thought is that companies realize that they can supercharge profits by acknowledging that different groups of customers vary widely in their behavior, desires, and responsiveness to marketing.

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CRM is the philosophy, policy and coordinating strategy connecting different players within an organization so as to coordinate their efforts in creating an overall valuable series of experiences, products and services for the customer.

The different players within the organization are in identifiable groups: •

Customer Facing Operations - The people and the technology support of processes that affect a customer's experience at the frontline interface between the customer and the organization. This can include face to face, phone, IM, chat, email, web and combinations of all medium. Self-service kiosk and web selfservice are doing the job of vocals and they belong here.

•

Internal Collaborative Functional Operations - The people and technology support of processes at the policy and back office which ultimately affect the activities of the Customer Facing Operations concerning the building and maintaining of customer relationships. This can include IT, billing, invoicing, maintenance, planning, marketing, advertising, finance, services planning and manufacturing.

•

External Collaboration functions - The people and technology support of processes supporting an organization and its cultivation of customer relationships that are affected by the organization's own relationship with suppliers/vendors and retail outlets/distributors. Some would also include industry cooperative networks, e.g. lobbying groups, trade associations. This is the external network foundation which supports the internal Operations and Customer facing Operations.

•

Customer Advocates and Experience Designers - Creative designers of customer experience that meet customer relationship goals of delivering value to the customer and profit to the organization (or desired outcomes and achievement of goals for non-profit and government organizations).

•

Customer and Employee Surveyors and Analysts - Customer Relationships are both fact driven and impression driven - the quality of an interaction is as important as the information and outcome achieved, in determining whether the relationship is growing or shrinking in value to the participants.

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Technology considerations: The technology requirements of a CRM strategy must be guided by an overall view of who is the customer and what value they are to get from engaging with the organization.

The basic building blocks: A database for customer lifecycle (time series) information about each customer and prospect and their interactions with the organization, including order information, support information, requests, complaints, interviews and survey responses.

Customer Intelligence - Translating customer needs and profitability projection into game plans for different segments or groups of customers, captured by customer interactions (Human, automated or combinations of both) into software that tracks whether that game plan is followed or not, and whether the desired outcomes are obtained.

Business Modeling - Customer Relationship Strategy, Goals and outcomes: Numbers and description of whether goals were met and models of customer segments and game plans worked as hypothesized.

Learning and Competency Management Systems - Customer Capacity and Competency Development - Training and improving processes and technology that enable the organization to get closer to achieving the desired results. Complex systems require practice in order to achieve desired outcomes, especially when humans and technology are interacting. Iteration is the key to refining, improving and innovating to stay ahead of the competition in Customer Relationship Management. (Successful tools, technology and practices will be copied by the competition as soon as they are proven successful.)

Analytics and quality monitoring - Voice recognition, video pattern matching, statistical analysis, activity-based costing to ultimately determine profitability of customer relationship policies and activities over the lifecycle of each group of customers sharing a defined set of characteristics.

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Collaboration and Social networks - Profiling and interactive technology that allows the customers to interact with the business and their fellow customers and others: prospective customers, strategic partners.

The building blocks can be implemented over time separately, but eventually need to be dynamically coordinated. The ongoing alignment of the basic building blocks distinguishes an elegant seamless CRM implementation which successfully builds mutually valuable relationships.

Operational CRM: Operational CRM provides support to "front office" business processes, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve information on customers from the database when necessary.

One of the main benefits of this contact history is that customers can interact with different people or different contact channels in a company over time without having to describe the history of their interaction each time. Consequently, many call centers use some kind of CRM software to support their call center agents.

Operational CRM processes customer data for a variety of purposes: • • •

Managing Campaigns Enterprise Marketing Automation Sales Force Automation

Analytical CRM: Analytical CRM analyzes customer data for a variety of purposes: • • • •

Design and execution of targeted marketing campaigns to optimize marketing effectiveness Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.)

Management decisions, e.g. financial forecasting and customer profitability analysis 18

Collaborative CRM The function of the Customer Interaction System or Collaborative Customer Relationship Management is to coordinate the multi-channel service and support given to the customer by providing the infrastructure for responsive and effective support to customer issues, questions, complaints, etc.

Collaborative CRM aims to get various departments within a business, such as sales, technical support and marketing, to share the useful information that they collect from interactions with customers. Feedback from a technical support center, for example, could be used to inform marketing staffers about specific services and features requested by customers.

Strategy: Several commercial CRM software packages are available which vary in their approach to CRM. However, as mentioned above, CRM is not just a technology but rather a comprehensive customer-centric approach to an organization's philosophy in dealing with its customers. This includes policies and processes, front-of-house customer service, employee training, marketing, systems and information management. Hence, it is important that any CRM implementation considerations stretch beyond technology, towards the broader organizational requirements.

The objectives of a CRM strategy must consider a company’s specific situation and its customers' needs and expectations. Information gained through CRM initiatives can support the development of marketing strategy by developing the organization's knowledge in areas such as identifying customer segments, improving customer retention, improving product offerings

and by identifying the organization's most

profitable customers. CRM strategies can vary in size, complexity and scope. Some companies consider a CRM strategy to only focus on the management of a team of salespeople. However, other CRM strategies can cover customer interaction across the entire organization. Many commercial CRM software packages that are available provide features that serve sales, marketing, event management, project management and finance.

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Successes: While there are numerous reports of "failed" implementations of various types of CRM projects, these are often the result of unrealistic high expectations and exaggerated claims by CRM vendors.

Many of these "failures" are also related to data quality and availability. Data cleaning is a major issue. If the company CRM strategy is to track life-cycle revenues, costs, margins and interactions between individual customers, this must be reflected in all business processes. Data must be extracted from multiple sources (e.g., departmental/divisional databases, including sales, manufacturing, supply chain, logistics, finance, service, etc.), requiring an integrated, and comprehensive business processing system to be in place with defined structures and data quality. If not, interfaces must be developed and implemented to extract data from different systems.

This creates a demand far beyond customer satisfaction to understand the full businessto-business relationship. For this reason, CRM is more than a sales or customer interaction system.

The experience from many companies is that a clear CRM requirement with regard to reports (e.g., input and output requirements) is of vital importance before starting any implementation. With a proper demand specification, a great deal of time and money can be saved based on realistic expectations of systems capability. A well operating CRM system can be an extremely powerful tool for management and customer strategies.

Privacy and data security One of the primary functions of CRM software is to collect information about customers. When gathering data as part of a CRM solution, a company must consider customer privacy and data security with respect to legal and cultural environments.

Some customers prefer assurance that their data is not shared with third parties without their consent and that it cannot be illicitly accessed by third parti

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Customer relationship management is perhaps the most important concept of modern marketing. Until recently CRM has been defined narrowly as a customer data management activity. By this definition, it involves managing detailed information about individual customers and carefully managing customer “touch points” in order to maximize customer loyalty.

More recently, however, customer relationship management has taken on a broader meaning. In this broader sense, customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. It deals with all aspects of acquiring, keeping, and growing customers.

EXCHANGES AND RELATIONSHIPS Marketing occurs when people decide to satisfy need and wants through exchange relationships. Exchange is the act of obtaining a desired object from someone by offering something in return. In the broadest sense, the marketer tries to bring about a response to some marketing offer. The response may be more than simply buying or trading products and services. A political candidate, for instance, wants votes, a church wants membership, and a social action group wants idea acceptance.

Marketing consists of actions taken a build and maintain desirable exchange relationships with target audiences involving a product, service, idea, or other object.

Beyond simply attracting new customers and creating is to retain customer and grow their business with the company.

Marketers want to build strong relationships by

consistently delivering superior customer value.

We will expand on the important

concept customer relationship management later in the chapter.

SELECTING CUSTOMERS TO SERVE The company must first decide who it will serve. It does this by dividing the market in to segments of customers (market segmentation) and selecting which segments it will go after (target marketing) .some people think of marketing management as finding as many customers as possible and increasing demand. But marketing manager know that

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they cannot serve all customers in every way. By trying to serve all customers, they may not serve any customers well. Instead, the company wants to select only customer that it can serve well and profitably. For example, Nordstrom stores profitable target families with more modest means.

Some marketers may even seek fewer customers and reduced demand. For example, many power companies have trouble meeting demand during peak usage periods. In these and other cases of excess demand, demand, and companies may practice reduce the number of customers or to shift their demand temporarily or permanently? For instance, to reduce demand for space on congested expressways Washington, D.C., the metropolitan Washington council of Governments has set up a web site encouraging commuters to carpool and use mass transit.

Thus marketing managers must decide which customers they want to target, and on the level, timing and nature of their demand. Simply put, marketing management

is

customer management and demand management.

MARKETING MANAGEMENT ORIENTATIONS Marketing management wants to design strategies that will build profitable relationships with target consumers. But what philosophy should guide these marketing strategies?

What weight should be given to the interests of customers, the organizations and society? Very often, these interests conflict.

There are five alternative concepts under which organizations design and carry out their marketing strategies the productions, product, selling, marketing, and societal marketing concepts.

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THE PRODUCTION CONCEPT The production concept holds that consumers will favor products that are available and highly affordable. Therefore, management should focus on improving productions and distribution efficiency. This concept is one of the oldest orientations that guide sellers.

PRODUCT CONCEPT The idea that consumers will favor products that offer the most in quality, performance, and features and that the organizations should therefore devote its energy to making continuous product improvements.

SELLING CONCEPTS The idea that consumers will not buy enough of the firms’ products unless it undertakes a large scale selling and promotions efforts.

MARKETING CONCEPTS The marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do.

THE SOCIETAL MARKETING CONCEPT A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants the companies’ requirements, consumers’ long-run interests, and society’s long run interests.

BUILDING CUSTOMER RELATIONSHIPS The first three steps in the marketing process understanding the marketplace and customer needs, designing a customer driven marketing strategy, and constructing marketing programs all lead up to the fourth and most important step building profitable customer relationships

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It needs to be emphasized at the very outset that there is no unified, tested and universally established theory buying behavior. What we have today are certain ideas on buying behavior. Some of these ideas are taken their cue from economics, others from psychology, and yet other is drawn simultaneously from several of the social sciences.

Professional researchers as well as business firms have studied the subject extensively, contributing to a large assortment of knowledge on buyer behavior. However, a universally accepted theory on the subject is yet to emerge. It is with this understanding of the limitations of buyer behavior studies that we have to precede further.

Buying behavior concerned with the activities and actions of people and organizations that purchase and use economic goods and services, including the influences on these activities and actions.

The Consumer’s Environment The many environmental influences combine to form a total life setting for consumers. Purchasing and using product and services are among the ways in which people respond to and interact with the world about them. Marketing managers must understand the live setting of consumers to fully appreciate what consumers are trying to accomplish with particular purchase. Only then can a company demonstrate the relevance of its marketing offer to customers by showing how it will help them deal with their life setting. Ultimately, convincing customers of the product offer’s relevance is crucial to sales growth in markets.

Marketing stimuli consist of the four Ps: product, price, place and promotion.

Other stimuli include major forces and events in the buyer’s environment: economic, technological, political, and cultural. All these inputs enter the buyer’s black box where they are turned into a set of observable buyer responses: product choice, brand choice, dealer choice, purchase timing and purchase amount.

The marketer want to understand how the stimuli are changed into response inside the consumer’s black box, which has two parts: First, the buyer’s characteristics influence how he or she perceives and reacts to the stimuli; Second, the buyer’s decision process itself affect the buyer’s behavior.

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CHAPTER - III

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COMPANY PROFILE: Hero Honda Motors Ltd.

"Desh ki DhaDkan"

Hero Honda is the World's No.1 two-wheeler manufacturing company having the trust of more than 5 million customers. The company is a joint venture of Hero Cycles of India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure and Splendor are its famous brands on Indian roads.

Type Public company BSE:HEROHONDA M Founded January 19, 1984 in Gurgaon, Haryana, India Headquarters New Delhi, India Brijmohan Lal Munjal, Founder Key people

Industry Products Revenue Slogan Website

Mr. Brijmohan Lal Munjal, Chairman Mr. Toshiaki Nakagawa, Joint Managing Director Mr. Pawan Munjal, Managing Director, CEO Automotive Motorcycles, Scooters U$ 2.8 billion Desh Ki Dhadkan www.Herohonda.com

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Hero Honda started out, as a joint venture between Hero Group, the world’s largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the world’s single largest Two-Wheeler company. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels made even more famous by the ‘Fill it – Shut it – Forget it’ campaign.

Driven By the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer – friendly companies.

Brijmohan Lall Munjal – The king of the Road The venerated patriarch and visionary of the Hero Group, Mr. Brijmohan Lall Munjal is a first generation entrepreneur who started very small and through sheer hard work and perseverance has today made his two-wheeler venture the world’s no.1 Two Wheeler Company.

Customer satisfaction, a high quality product, the strength of Honda technology and the Hero group’s dynamism have helped HHML scale new frontiers and exceed limits.Hero, the brand name synonymous with two-wheelers in India, is a multi-unit, multi-product, geographically diversified, Group of Companies – the reflection of the steely ambition and indomitable grit of the Munjal Family…

Mission Statement Of Brij Mohan Lall Munjal “It’s our mission to strive for synergy between technology, systems and human resources to produce products and services.

Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian motorcycle. Its commitment of providing the customer with excellence is selfevident. A rich background of producing high value products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish itself as an 27

intelligent purchase. Its unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country.

Finance services helped facilitate purchase, as did an efficient dealer network across the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the National Productivity Council's Award (1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders.

Founder

Munjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. Munjal.

Year of Establishment

1984 (The Hero Group was established in 1956)

Mission

"Its our mission to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers.

While doing so, we maintain the highest standards of ethics and societal responsibilities."

- Mr Brijmohan Lall Munjal, Chairman & MD

Foundational Work

Before the establishment of the Hero Group in 1956, Munjal Brothers use to manufacture bicycle components in the early 1940's.

Industry

Automotive - Two Wheelers

Business Group

The Hero Group

Capitalization Ratio

Hero Group - 26% Honda Motor Co., Ltd. - 26% Others - 48% (listing)

Listings & its codes

BSE - Code: 500182 NSE - Code: HERO HONDA Bloomberg - Code: HH@IN

No. of Sales Outlets

1500+

Joint Venture

The Hero Group (India) with Honda Motor Co., Ltd.

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(Japan) Registered & Corporate Office

34, Community Centre Basant Lok, Vasant Vihar New Delhi - 110057 Tel.: +(91)-(11)-26142451 - 59 Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 / 2132

Work Station

69 Km Stone New Delhi-Jaipur Highway Daruhera - 121106, Haryana

Website

www.herohonda.com www.herogroup.com

Sales Performance Dec'05 Domestic

Dec'06

Apr'07-Dec'08

Apr'08-Dec'09

2225250

238822

1892540

2155479

5501

6282

43441

72815

Exports

Financials at a Glance (Rupees in Crores)

Particulars Total Income

2004-05 2005-06 2006-07 2007-08 2008-09 3191

4539

5195

5997

7563

Profit before Tax

377

694

885

1072

1217

Profit after Tax

247

463

581

728

810

66

116

134

175

202

Net Fixed Assets

454

491

517

589

715

OPBIT*/Net sales-%

13.2

15.0

16.7

16.8

15.7

OPBT**/Net Sales*(%)

11.7

13.9

15.5

15.6

14.6

Dividend Per Share ( Rs)

3.0

17.0

18.0

20

20

26.7

75.5

69.8

61.9

56.3

Total Debt

Dividend Payout (%)

29

Outlook Honda will continue to provide Hero Honda with full and latest technological support.

Both of them will develop and expand the two-wheeler business in the country. They agree to strengthen model line up. Honda Motor Co. Ltd., Japan, renewed its Technical Collaboration Agreement for another 10 years, uptill 2014. The previous renewal was in 1994 after the establishment in 1984.

Honda has strengthened its R&D facilities in India and together with R&D in Japan, it will continue to provide Hero Honda with the Leading Edge Honda Technology.

According to Mr. Brijmohan Lall, Chairman, Hero Honda Motors Limited, Hero Honda is a 'Showcase' of an ideal partnership where both the partners have combined their unique strengths and have successfully created the 'World's No. 1' two-wheeler company.

Company Flashback Two-wheelers in India is a synonymous to the brand Hero Honda, a unit of Hero Group. Established in 1984 as a joint venture of The Hero Group (India) and Honda Motor Co. Ltd. (Japan), Hero Honda is the 'world's No. 1' two-wheeler company.

Driven by the trust of over 5 million customers, the product range of Hero Honda commands a market share of approximately 50%. Starting with a sale figure of only 43,000 units in 1985-86, the company has reached a high of 26, 21, 400 units in 200405. According to Pawan Munjal, Managing Director and CEO of Hero Honda, the gap with its nearest rival, Bajaj Auto, is over a million units in 2004-05.

On a compounded annual growth rate (CAGR) basis, the sales volume of the company have been growing at 33% for the last 6 years (as stated in 2003-04) and the net sales value at 36% over the same period. Parallel to it, the profit of the company have been growing at 50% CAGR. The company enjoys debt free status since March 01 and had zero level of contingent liabilities as of 31st March 03. The entire long term debt of Rs. 116 Cr. as on

30

31st March 03 represents an interest free loan from the Government of Haryana on account of sales tax deferment, and has no costs attached to it.

Service Statement Hero Honda’s constant endeavor is to support the company’s mandate of providing highest level of customer satisfaction by taking CARE of your motorcycle service & Maintenance through our vast network of more than 1000 committed dealers & service outlets spread across the country.

Hero Honda’s state-of-the-heart authorized workshop have well laid out standards for motorcycle servicing supported by fully equipped infrastructure in terms of quality precision instruments, pneumatic tools & a team of highly trained service technicians. Having your motorcycle serviced at an authorized workshop ensures highest standards of service quality and reliability.

KEY POLICIES Environment policy: Towards creating and preserving a cleaner environment Hero Honda Motors Ltd. Manufacturer of two-wheelers is committed to prevention of pollution, continual improvement of our environment performance and compliance with all applicable environmental legislation and regulations.

Towards this, we shall strive to: •

Create proactive environmental management systems that address all environmentally significant aspects related to our products and process.

•

Minimize the generation of waste and conserve resources through better technology and practices, and

•

Promote environmental awareness amongst our employees and motivate them to fulfill our commitments.

Hero Honda pledges towards creating and preserving cleaner environment.

Quality policy: Hero Honda continues to firmly believe in providing the customer value for money, for years of their products and services. This they shall maintain and improve.

31

In decision-making, quality, safety and service they give much consideration for productivity, cost and delivery. Quality shall be built into every aspect of their work life and business operations. Quality improvements and customer satisfaction shall be the responsibility of every employee.

TPM POLICY Hero Honda adopts Total productivity maintenance as a means of creating a safe and participative work environment in which all employees target the elimination of losses in order to continuously enhance the capacity, flexibility, reliability and capability of its processes, leading to higher morale and greater organizational profitability.

HERO HONDA BRAND Their Brand Identity: Hero Honda Brand is the visual expression of their thoughts and actions. It conveys to everyone that their intention is to constantly inspire confidence. Their customers are the primary audience for their brand. Indeed, their brand identity is shaped as much always reinforces the distinctiveness and the power of their brand. They can do this by living upon brand essence and by continuously seeking to enhance their customer’s experience. In doing so, they ensure a special place for ourselves in the hearts and the minds of their customers.

Brand Essence:  Our Brand Essence is the soul of our brand.  Our Brand essence encapsulates our mission at Hero Honda.  It is the singular representation of our terms of endearment with or customers.  It provides the basis on which we grow profitably in the market.  Our Brand Essence is Excitement.  Hero Honda strives to inspire confidence through excitement engineering.  Blending together youthful creativity and competitive technology to exceed the spoken and the implicit expectations of our customers.  By challenging the given. By exploring the unknown and there by stretching ourselves toward tomorrow, today.

32

Brand Values: We live our brand by its values of learning, innovation, perfection, speed and Transparency. Hero Honda will inspire confidence through excitement engineering.

Learning: Learning is how we ensure proactively. It is a value that embraces knowledge as the platform for building well informed, reasoned a decisive action.

Innovation: Innovation is how we create the future. It is a value that provokes us to reach beyond the obvious in pursuit of that which exceeds the ordinary.

Perfection: Perfection is how we set new standards. It is a value exhibits our determination to excel by endeavoring to establish new benchmarks all the time.

Speed: Speed is how we convey clear conviction. It is a value that keeps us sharply responsive, mirroring our commitment towards our goals and processes.

Transparency: Transparency is how we characterize ourselves. It is a value that makes us worthy of credibility through integrity, of thrust through Sensitivity and of loyalty interdependence.

Hero Group Companies Are: •

Hero Honda Motors Limited

•

Hero Cycles Limited

•

Hero Auto Limited

•

Munjal Showa Limited

•

Majestic Auto Limited

•

Hero Exports

•

Munjal Auto Industries Limited

•

Sunbeam Auto Limited

33

•

Munjal Casting

•

Highway Industries Limited

•

Rockman Cycle Industries Limited

•

Hero Cycles Cold Rolling Division

•

Munjal Auto Components

•

Satyam Auto Components Limited

•

Hero Global Design

•

Hero Honda Fin lease Limited

•

Easy Bill Limited

•

Munjal Sales Corporations

•

Hero Financial Services Limited

BOARD OF DIRECTORS

No. Name of the Directors

Designation

1

Mr. Brijmohan Lall Munjal

Chairman & Whole-time Director

2

Mr. Pawan Munjal

Managing Director & CEO

3

Mr. Toshiaki Nakagawa

Joint Managing Director

4

Mr. Sumihisa Fukuda

Technical Director

5

Mr. Om Prakash Munjal

Non-executive Director

6

Mr. Sunil Kant Munjal

Non-executive Director

7

Mr. Masahiro Takedagawa

Non-executive Director

8

Mr. Satoshi Matsuzawa Non-executive Director (Alternate Director to Mr. Takashi Nagai)

9

Mr. Pradeep Dinodia

Non-executive & Independent Director

10 Gen.(Retd.) Ved Prakash Malik

Non-executive & Independent Director

11 Mr. Analjit Singh

Non-executive & Independent Director

12 Dr. Pritam Singh

Non-executive & Independent Director

13 Ms. Shobhana Bhartia

Non-executive & Independent Director

14 Mr. Sunil Bharti Mittal

Non-executive & Independent Director

15. Mr. Meleveetil Damodaran

Non-executive & Independent Director

16. Mr. Arun Nath Maira

Non-executive & Independent Director

34

3.1 INTRODUCTION TO 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 Baja 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.

History The inspiration for arguably the first motorcycle was designed and built by the German inventors Gottlieb Daimler and Wilhelm Maybach in Bad Cannstatt (since 1905 a city district of Stuttgart) in 1885.[1] The first petroleum-powered vehicle, it was essentially a motorised bicycle, although the inventors called their invention the Reitwagen ("riding car"). However, if one counts two wheels with steam propulsion as being a motorcycle, then the first one may have been American. One such machine was demonstrated at fairs and circuses in the eastern U.S. in 1867, built by Sylvester Howard Roper of Roxbury, Massachusetts.

35

In 1894, Hildebrand & Wolfmüller became the first motorcycle available for purchase. In the early period of motorcycle history, many producers of bicycles adapted their designs to accommodate the new internal combustion engine.

As the engines became more powerful, and designs outgrew the bicycle origins, the number of motorcycle producers increased.

Until the First World War, the largest motorcycle manufacturer in the world was Indian, producing over 20,000 bikes per year. By 1920, this honour went to HarleyDavidson, with their motorcycles being sold by dealers in 67 countries, until 1928 when DKW took over as the largest manufacturer.

After the Second World War, the BSA Group became the largest producer of motorcycles in the world, producing up to 75,000 bikes a year in the 1950s. The German company NSU Motorenwerke AG held the position of largest manufacturer from 1955 until the 1970s.

From the 1960s through the 1990s, small two-stroke motorcycles were popular worldwide, partly as a result of East German Walter Kaaden's engine work in the 1950s.

Today, the Japanese manufacturers, Honda, Kawasaki, Suzuki, and Yamaha dominate the motorcycle industry, although Harley-Davidson still maintains a high degree of popularity in the United States. Recent years have also seen a resurgence in the popularity of several other brands sold in the U.S. market, including BMW, KTM, Triumph, Aprilia, Moto Guzzi and Ducati.

Outside of the USA, these brands have enjoyed continued and sustained success, although Triumph, for example, has been re-incarnated from its former self into a modern world-class manufacturer. In overall numbers, however, the Chinese currently manufacture and sell more motorcycles than any other country and exports are rising.

The quality of these machines is asserted to be somewhat lower than their Japanese, European and American counterparts.

36

Additionally, the small-capacity scooter is very popular through most of the world. The Piaggio group of Italy, for example, is one of the world's largest producers of two-wheeled vehicles. The scooter culture has, as yet, not been adopted widely in North America.

Construction Motorcycle construction Motorcycle construction is the engineering, manufacturing, and assembly of components and systems for a motorcycle which results in performance, cost and aesthetics desired by the designer. With some exceptions, construction of modern mass-produced motorcycles has standardised on a steel or aluminium frame, telescopic forks holding the front wheel, and disc brakes. A one- to eight-cylinder gasoline powered engine coupled to a manual, five- or six-speed sequential transmission drives the swingarm-mounted rear wheel by a chain, driveshaft or belt.

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) Ltd (HMSI).

Types of Two-wheelers in India : There are mainly three types of two-wheelers available in India. They are Motorcycles, Scooters and Scooterettes/Mopeds.

37

Motorcycles in India : Bikes comprise a major segment of Indian two wheeler industry.

Some of the major two wheeler auto player who have their share in the two wheeler bikes industry are as follows:

Company : Bajaj Auto Ltd • • • • • • • •

Bajaj Avenger Bajaj CT 100 Bajaj Platina Bajaj Discover DTSi Bajaj Pulsar DTSi Bajaj Wave Bajaj Wind 125 Sonic DTSi

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 : Kinetic Motor Company • • • • • • •

Kinetic Aquila Kinetic Boss Kinetic Challenger Kinetic Comet Kinetic GF Kinetic Stryker

Company : TVS MOTOR

38

• • • • •

TVS Apache TVS Centra TVS Fiero TVS Star TVS Victor

Company : Yamaha Motor India • • •

Yamaha CruxS Yamaha G5 Yamaha Gladiator

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 Chetak, 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 Kine, 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.

39

PRODUCTS PROFILE Hero Honda Passion Plus With the maximum power of 7.5 PS @ 8000 rpm, this comes with 4 stroke single cylinder air-cooled OHC engine.

Its tubular double cradle frame along with its 9 new two-tone body colors and two tone front fenders give its style statement to the extremely finicky bike lovers. To mention few more styling features, this bike is equipped with body color rear view mirror, aluminum die cast rear grip, heat protector on the muffler, and new dials in the instrument panel etc.

Its enough luggage space with locking facility, lockable seat and helmet holder are the important features for rider's convenience. Comfort of the journey is defined by the arrangement of adjustable rear cushion, wide and spacious seat and broad rear tyre.

Its wider wheel base provides proper safety to the biker. Safety of riding is further taken care by the arrangement of several lighting fitting like position lamp, side reflector, headlight with halogen lamp, multi reflector winker etc.

It is found in different colors: • • • • • • •

Moon Yellow Cloud Silver Amranth Maroon Tornado Grey Tahitian Blue Black with Magna Red Stripes Black with Purple Stripes

40

• • •

Candy Blazing Red Turquoise Blue Tasmanian Green

TECHNICAL SPECIFICATIONS OF HERO HONDA PASSION PLUS Dimension & Weight Overall height

1060 mm

Overall length

1980 mm

Overall Width

720 mm

Wheelbase

1235 mm

Ground Clearance

160 mm

Kerb weight

116 kg

Fuel Tank Capacity

12.8 Litre

Engine Type

Air - Cooled OHC

Stroke (2/4)

4-stroke

No. of cylinders

Single Cylinder

Displacement

97.2 cc

Electrical

12 V-2.5 Ah

Transmission No. of Gears

4 Speed Constant Mesh

Clutch

Multi-Plate Wet Type

Performance Maximum Power

7.5 PS @ 8000 rpm

Start

Kick Starter

Suspensions Front

Telescopic Hydraulic Fork

Rear

Swing Arm with 5 step adjustable hydraulic damper

Brakes 41

Front

Internal Expanding Shoes Type 130mm/ Hydraulic Disc Type (Optional)

Rear

Internal Expanding Shoes Type 130 mm

Tyres Front

2.75 x 18” - 4 PR / 42 P

Rear

3.00 x 18” - 4 / 6 PR

1) Hero Honda’s new passion plus 2) Hero Honda’s new passion plus embraces the contemporary black theme but now it looks more like a glamour

3) Hero Honda’s new passion plus is available in six colours - sports red, Black & sports red, Force silver, Vibrant blue, palace maroon and Black & Frost blue

42

4) Hero Honda’s new passion plus features new graphics, body coloured rear grip, 5 spoke alloy wheels, all black engine and yellow black instrument panel like new karizma

VEHICLES Some like our looks; some go for speed and power. The truth is, our motorcycles have it all – style, speed, performance, comfort and safety. So go ahead and make your choice, whichever bike you go for, you are in for a great ride

Hero Honda Splendor Hero Honda Splendor is one of the largest selling motorcycle in the world. The bike specializes in dual use motorcycles that are underpower but very fuel efficient. It is an executive segment motorcycle specially made for the office goers

43

Company

Stroke

Maximum Power

Displacement

Hero Honda Motors Ltd.

4-Stroke, air cooled

7.1 bhp/ 8500 rpm

97.2 cc

Technical Specifications

44

Dimension & weight Overall height

1040 mm

Overall length

1950 mm

Wheelbase

1230 mm

Ground Clearance

159 mm

Kerb weight

100.3kg

Fuel Tank Capacity

10.5 litres

Engine Type

4 - Stroke, air cooled

No. of cylinders

1

Displacement

97.2 cc

Electrical

12V-2.5AH

Transmission No. of Gears

4 - speed

Performance Maximum Power

7.1bhp/8500rpm

Start

Kick start

Suspension Front

Telescopic hydraulic fork

Rear

Hydraulic spring loaded type with both side action.

Tyre Tyre (front)

2.75 x 18-4 PR

Tyre (rear)

2.75 x 18-6 PR

Brakes Type of brake (front)

Drum type (130 mm Diameter) Optional: Disc type (240 mm Diamter)

Type of brake (rear)

Drum type (110 mm Diameter)

45

Hero Honda CD-Dawn Value Nayae Zamane Ki Hero Honda CD-Dawn is the true-value 4 stroke 100 cc motorcycle from the company.

It has strong features of fuel efficiency, economy and rock-solid dependability. The bike comes in unique suspension, which smoothens and absorbs the bumps on unkind roads and provides a continuous riding comfort. As a whole it ensures an exceptionally stable ride.

The Hero Honda CD-Dawn is well equipped with standard suspension set-up of telescopic hydraulic fork at the front and it has a swing arm with hydraulic shock absorbers at the rear. The bike ensures a stable hassle-free ride with the double tubularcradle frame. If we talk about the style, it features a rectangular multi focal reflector headlight.

Company

Stroke

Hero Honda Motors 4-Stroke Ltd.

Maximum Power

Displacement

5.44 kw (7.4 PS) at 8000 rpm

97.2 cc

46

Technical Specifications of Hero Honda CD-Dawn The given table will give full information about the technical specification of the car like the dimensions & weights, the engine, suspension, brakes, tyres and other such related information.

Dimensions & Weights Length

1980 mm

Width

720 mm

Height

1045 mm

Wheel base

1230 mm

Ground clearance

150 mm

Kerb Weight

108 kg

Fuel Tank Capacity

10.5 Litre

Engine Type

Air - Cooled , OHC

Stroke (2/4)

4-stroke

No. of cylinders

Single cylinder

Displacement

97.2 cc

Electrical

12 V, 2.5 Ah

Bore x stroke

50.0 mm x 49.5 mm

No. of Gears

4 - speed constant mesh

Clutch

Multiplate, wet

Suspension Front Suspension

Telescopic hydraulic shock absorber

Rear Suspension

Swing arm with hydraulic shock absorber

Brakes Front Brake

Drum brakes, 110 mm

Rear Brake

Drum brakes, 110 mm

Tyres Front Tyre Size

2.75 x 18-4 PR Size

Rear Tyre Size

2.75 x 18-6 PR Size 47

Performance Maximum Power

7.4 PS @ 8000rpm

Max. Torque

0.79 Kg-m @ 5000 rpm

Start

Kick Start

Hero Honda CD Deluxe Jiyo Deluxe... Chalao Deluxe The Hero Honda CD Deluxe is a 100 cc bike with a new front bikini fairing and graphics. The bike comes in style with a halogen-equipped MFR headlight. It has the same frame and engine as of earlier CD 100 series, so one can expect it to be well-built and reliable. The wheelbase of the bike is 1230 mm and the fuel tank has the capacity of 10.5 litres.

Company

Stroke

Hero Honda Motors 4-Stroke OHC Ltd.

Maximum Power 5.44 kw (7.4 PS) at 8000 rpm

Displacement 97.2 cc

Technical

Specifications Dimensions & Weights Length

1970 mm

Width

720 mm

Height

1045 mm

Wheel base

1230 mm

48

Ground clearance

159 mm

Kerb Weight

108 kg

Fuel Tank Capacity

10.5 Litre

Engine Type

Air - Cooled , OHC

Stroke (2/4)

4-stroke

No. of cylinders

Single cylinder

Displacement

97.2 cc

Electrical

12V, 35/ 35 Watt AC

Bore x stroke

50.0 mm x 49.5 mm

No. of Gears

4 - speed constant mesh

Clutch

Multi Plate Wet Type

Suspension Front Suspension

Telescopic hydraulic fork

Rear Suspension

Swing Arm with Hydraulic Shock Absorbers

Brakes Front Brake

Drums brakes, Internal Expanding Type - 130 mm Dia

Rear Brake

Drums brakes, Internal Expanding Type - 110 mm Dia

Tyres Front Tyre Size

2.75

Rear Tyre Size

2.75

Performance Maximum Power

5.44 Kw / 7.4 PS @ 8000 rpm

Max. Torque

0.79 Kgm @ 5000 rpm

Start

Kick Sta

Hero Honda Glamour Live The G Life Hero Honda Glamour has been set in the premium segment by the company. The bike comes in 125cc with a curvaceous and new fairing design look. The engine of Glamour is developed by Japanese partner Honda's research & development team. It has better 49

mileage and high power. The 'Quantum Core' engine and the flush-type lock on the fuel tank of Glamour is a first-of-its-kind in the segment. It is sure to attract the young bikers.

Company

Stroke

Maximum Power

Displacement

Hero Honda Motors Ltd.

4-Stroke

7.16 kW @ 7500 rpm

124.8 cc

Technical Specifications Dimensions & Weights Length

2017 mm

Width

770 mm

Height

1136 mm

Wheel base

1260 mm

Ground clearance

164 mm

Kerb Weight

118 kg

50

Fuel Tank Capacity

13 Litres

Engine Type

Air - Cooled , OHC

Stroke (2/4)

4-stroke

No. of cylinders

Single cylinder

Displacement

124.8 cc

Electrical

12 V, 35 /35 Watt, Digital ignition

Bore x stroke

54.5 mm x 53.5 mm

No. of Gears

4 - Speed constant mesh

Suspension Front Suspension

Telescopic oil- damped, 105 mm travel

Rear Suspension

Hydraulic with co-axial spring, 75 mm travel

Brakes Front Brake

Drum brake 130 mm dia. / Disc brakes 240 mm (Optional)

Rear Brake

Drum brakes 130 mm dia. at rear

Tyres Front Tyre Size

2.75

Rear Tyre Size

3.0” x 18

Performance Maximum Power

7.16 kW @ 7500 rpm

Max. Torque

9.5 Nm @ 5500 rpm

Start

Kick Start

Hero Honda CBZ X-treme

Live Extreme

The powerful CBZ X-treme is equipped with loads of features. Diamond-frame type tubular chassis, box-section swing arm, adequate ground clearance of 145 mm with stepped up pillion seat and split grab rail provides the extreme driving pleasure for rider and the pillion rider. This new offering from Hero Honda comes with disc brake and 5 spoke alloy wheel as standard fitment.

51

Launched in two variants with kick-start and self-start option, CBZ X-treme is up for sale with a ex-showroom price tag of Rs. 54,000-56,000.

CompanyName

Segment Displacement

Hero Honda Motors Ltd.

150 cc

149.2 c.c

Maximum Power 10.6 KW ( 14.4 ps) @ 8500 rpm

Technical Specifications of CBZ X-treme Dimensions & Weight Wheelbase (mm)

1325

Length (mm)

2080

Width (mm)

765

Height (mm)

1145

Ground Clearance (mm)

145

Weight (kgs)

141

Engine Model Designation

Air Cooled, 4 Stroke OHC

Starting

Self Start/Kick Start

Idle Speed

1400 rpm

Displacement (cc)

149.2cc

Ignition

AMI - Advanced Microprocessor Ignition System

Bore & Stroke

57.3 X 57.8 MM

Suspension

52

Front

Telescopic Hydraulic Shock Absorber

Rear

Swing arm with adjustable hydraulic shock absorber

Brakes Front

Disc Type (dia 240 mm)

Rear

Drum Type, internal expanding shoe type

Tyres Front

2.75 X 18" 42 P (Alloy)

Rear

100/90 x 18 - 56 P (Alloy)

Fuel Tank

12.3 Lts.

Performance Max. Horsepower (ps/rpm)

10.6 KW(14.4 PS) @ 8,500 RPM

Max. Torque (kg m/rpm)

12.80 NM @ 6,500 RPM

Hero Honda Achiever The Hero Honda Achiever from Hero Honda Motors Ltd. comes with twin rear shocks and apparent air-skoops in the front below the fuel tank. It is built on 1290 mm wheelbase. The kick-start version weighs only 139 kg. The fuel tank of the bike has a capacity of 12.5 litres with usable reserve of 2.3 litres. The higher reserve capacity makes Achiever rural-friendly because of lack of petrol pumps in these areas.

53

Company

Stroke

Maximum Power

Displacement

Hero Honda Motors Ltd.

4-Stroke Air Cooled

10 kw (13.4bhp)

149.1cc

Technical Specifications Engine

4 Strok Air Cooled

Displacement

149.1cc

Maximum Power

10 kw (13.4bhp)

Gears

5 gears

Frame

Diamond Cradle

Tyre Size (Front)

2.75 X 18 - 42 P / 4 PR

Tyre Size (Rear)

3.00 X 18 - 52 P / 6 PR

Headlight

35W / 35 W Halogen Bulb

Top Speed

101 kmph

Acceleration

0-60 in (5 seconds)

Kerb Weight

134 kg

Hero Honda Karizma Jet Set Go...

Hero Honda Karizma was the first real sports bike in India. The bike addresses to those who have a passion for speed and styling and head-turning looks. It has 17 ps power thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and styling. Disc breaks and Mag wheels makes Karizma the safest jet on the road.

54

Company

Stroke

Maximum Power

Displacement

Hero Honda Motors Ltd.

4-Stroke

16.8 bhp @ 7000 rpm

223 cc

Technical Specifications Dimension & Weight Overall height

1160 mm

Overall length

2125 mm

Overall Width

755 mm

Wheelbase

1355 mm

Ground Clearance

150 mm

Kerb weight

150 kg

Fuel Tank Capacity

15 litres

Engine Type

OHC, Air Cooled

Stroke (2/4)

4-stroke

No. of cylinders

Single Cylinder

Displacement

223cc

55

Electrical

12 V, 7.0 Ah

Transmission No. of Gears

5 speed

Clutch

Multi-plate wet type

Performance Maximum Power

16.8bhp @ 7000rpm

Max. Torque

-

Start

Kick / Electric

Suspensions Front

Telescopic Hydraulic Shock Absorbers

Rear

Swing arm with 5 step adjustable type hydraulic shock absorber

Brakes Front

Disc Brakes, 276 mm diameter

Rear

Internal Expanding Shoe, 130 mm

Tyres Front

2.75 x 18” - 42 P

Rear

100 / 90 x 18” - 56 P

Hero Honda Hunk Because Muscles Matter Hero Honda Motors Ltd. (HHML), India's leading two wheeler manufacturer, has launched its new offering as Hunk in the 150 cc segment. This new bike is the fourth launch in the premium segment after 156 cc CBZ Xtreme, 150 cc Achiever and 225 cc Karizma. Hero Honda Hunk carries robust looks and muscular styling with big tank shrouds, 5 spoke black alloy wheels, telescopic fork suspension and new GRS (Gas Reservoir Suspension) at rear. Hunk is powered with 150cc engine that generates 14.4Ps at 8500rpm of power and 12.8Nm of Torque.

Hero Honda has launched the 150 cc Hunk in two variants of kick start and self start with the price tag of Rs. 55,000 and 57,000 respectively. The all new Hunk is available in four colours - black, blue, red and silver.

56

Company Name Hero Honda Motors Ltd. (HHML)

Segment Displacement 150 cc

149.2 c.c

Maximum Power 14.4 ps @ 8500 rpm

Technical Specifications of Hero Honda Hunk Dimensions & Weight Length (mm)

2080

Width (mm)

765

Height (mm)

1095

Wheelbase (mm)

1325

Kerb Weight (kgs)

145

Ground Clearance (mm)

145

Engine Model Designation

Air Cooled, 4 - Stroke Single Cylinder OHC

Starting

Self Start/Kick Start

57

Displacement (cc)

149.2

Ignition

Advanced Microprocessor Ignition System (AMI)

Bore & Stroke

57.3 X 57.8 mm

Suspension Front

Telescopic Hydraulic Shock Absorbers

Rear

5 Step Adjustable Gas Reservoir Suspension - GRS

Brakes Type

Disc: 240 mm Dia Disc - Non Asbestos Type

Rear

Internal Expanding Shoe Type (130 mm), Non Asbestos Type.

Tyres Front

2.75 X 18 42P

Rear

100/90 X 18 - 56P (With Tuff-up Tube)

Fuel Tank

12.4 Litre

Performance Max. Horsepower (ps/rpm)

10.6 Kw (14.4 Ps ) @ 8500 rpm

Max. Torque (kg m/rpm) 12.80 N-m @ 6500 rpm More 150 cc - 500 cc Bikes in India

DEALER PROFILE (PHOENIX MOTORS) PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS PVT LTD., is established on 21 st March 2003. The business is running by only one man. The owner name is CH.MADHU MATHI

the firm is located at

Habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank like ICICI, HDFC and CENTURION are providing loans to customers.

58

ADVERTISING STRATEGY OF PHOENIX MOTORS: They are giving the Adds through newspapers, wall paintings, hoardings and field staff. They are upgrading sales by introducing the schemes, group bookings, institutional sales and customer door-to-door activities.

CATEGORIZATION OF STAFF MEMBERS: Staff members are categorized for technicians, 25 members are allotted for field staff, 5 members are recruited for sales for persons, 5 persons are placed for evaluating for spare parts, 5 members are allotted for managerial accounts and another 3 persons for cash transaction and other members are allotted for remaining work.

CUSTOMER RELATIONSHIP: To entertain the customers the showroom providing a customers huge having pool game, Internet facility and television with home theatre system. They provide bike maintenance programs on every week.

According to other dealers PHOENIX motors in first in sales and best in service.

They treat customer, is the very important person at PHOENIX motors customer satisfaction is their motto, why because, the well satisfied customer is the best advertisement. They provide better value for the customers and as well as employees also. At PHONIX motors the customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS: Averagely they are selling 25 vehicles per day. PHOENIX motors PVT LTD. Is the A.P s No.1 dealership in sales and other Activities? It is a QLAD (quality leader through quality dealer). At PHOENIX motor they gave the quality service to the customers why because “The cost is long forgotten but the quality is remembered for ever”. They treat quality has a...

Q

Quest for excellence

U

Understanding customer’s needs

A

Action to achieve customer’s appreciation 59

L

Leadership determined to be a leader

I

involving all the people

T

Team Spirit to work for a common goal

Y

Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS: Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly handled by the respective original manufactures (OEM’s) except AMCO for batteries and Dunlop and Falcon Tyres and Tubes. In case of any defect in proprietary items, other than the above two mentioned OEM’s the dealers must approach the branch office dealer of the respective manufacturers. For AMCO batteries and Dunlop and Falcon Tires, Tubes claims will be accepted at our authorized dealership. As per the mutually agreed terms and conditions between HERO HONDA and of these two OEM’s in case the claim is not accepted for invalid reasons. Then the claim along with the refusal note from the OEM can be sent to the warranty section at Gorgon plant after due to recommendation of the area service engineer.

•

If any of the six free services or subsequent paid services is not availed as per the recommended schedule given in the owner’s manual.

•

If HERO HONDA recommended engine oil is not used.

•

To normal wear & tear components like bulbs, electric wiring, filters, spark plug, clutch plates, brake shoes, fasteners, shims washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic components, chain & sprockets and in case of wheel rim misalignment or bend.

•

If there is any damage due to modification or fittings of accessories other than ones recommended by HERO HONDA.

•

If the motor has been used in any competitive events like tracking Races or Rallies.

•

If there is any damage to the painted surface due to industrial pollution or other extraneous factors.

60

•

For clams made for any consequential damage due to any previous malfunction.

•

For normal phenomenon like noise, vibration, oil seepage, which do not affect the performance of the motorcycles.

•

If there is any damage caused due to usage of improper oil, grease, nongenuine parts.

•

For motorcycles which have been used for any commercial purpose as taxi etc.

•

For maintenance repaired due to misuse while driving or due to adulteration of oil, petrol or due to bad road condition.

•

For consumable oil, grease etc. used during free services or used during warranty repairs.

•

If any part of the vehicle is tampered repaired by unauthorized person or workshops etc.

•

For motorcycles not using accordance with the owner’s manual supplied with each motorcycle by HERO HONDA.

All HERO HONDA motors are warranted for a period of 2 years or 30000 kilometers from date of purchase, whichever is earlier. This is i.e., 1 st April 2001. It is mandatory for The customer to avail all free and paid services as per recommended schedule to be eligible for the warranty benefits. That the customers have to be ensuring that each paid service is availed with in 60 days from the date of previous service or as per the recommended schedule. If a defect is observed in any HERO HONDA motorcycle, Hero Honda’s only obligation/liability is to repair or to replace those parts. Which are considered to be the cause of malfunction free of charge of both labor and material,

61

when HERO HONDA acknowledges that such malfunction as not come out of misuse or improper handling etc. such defective motor cycles should be brought to the nearest HERO HONDA dealer or authorized service center by the owner for necessary inspection and subsequent repairs.

 SOCIAL SERVICE ACTIVITIES PHOENIX motors participate and conduct social service activities. Recently the phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st January 2006. They motivated on the customers to participated in this camp and also provide certificate for the customers.

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CHAPTER - IV

DATA ANALYSIS Analyzed survey report 1. Specify your Education: 63

a) Non-Graduate

b) Graduation

c) PostGraduation

d) Postgraduation Professional

Qualification of the

No of customers

customer Non-Graduate Graduation Post Graduate Post graduation professional

16 29 35 20

35

No of customers

30 Non-Graduate

25 20

Graduation

15

Post Graduate

10

Post graduation professional

5 0

Qualification of customers

Interpretation: The above table shows out of 100 respondents, non- Graduates are using 11%, Graduates are using 30%, Post-Graduates Are using 33%, and post graduate professionals are using 26%. Most of the respondents are Post-graduates with 33%.

2. Specify your Occupation: a) Student

b) Employee

c) Self Employee

Occupation of the customer Student Employee Self Employee

No of customers 34 42 24

64

No. of customers

42

45 40 35 30 25 20 15 10 5 0

34 24

Occupation of customer Student

Employee

Self Employee

Interpretation: From this question we come to know that many customers of the Hero Honda are employees. Next comes to the students. This question is framed to know the major segment of customers for the Hero Honda.

3. Specify your Income level: a) 5000-10,000

b) 10,000-15,000

c) 15,000-20,000

d) 20,000above

Income level of the customer 5000-10,000 10,000-15,000 15,000-20,000 20,000above

No of customers 37 32 22 9 65

No. of customers

40

37

35 30

32

25 20

22

15 10

9

5000-10,000 10,000-15,000 15,000-20,000 20,000above

5 0 Income level of customers Interpretation: This question is meant to know the income level and economic status of the customers who are purchasing the Hero Honda, From the analysis of the above data we come to know that majority of the customers lay between 5,00010,000 earning income group.

4. Could you let me know when did your purchase your bike (herohonda) a) < 6months

b) 6-1years

c) 1-2years

d) > 2years Time period

No. of customers

Below 6 months

25

6-1 years

22

1-2 years

30

Above 2 years

23

66

30

30 No. of customers

25

25

23

22

20 15 10 5 0 time period

Below 6 months

6-1 years

1-2 years

Above 2 years

Interpretation: From the above analysis we come to know that most of the customers have purchased the Herohonda bike before 1-2 years. From this we can know how well the promotional strategies from the past 1year are.

5. Do you own any other bike other than Hero Honda ? a) yes b) No

Customers reply Yes No

No of customers 60 40

67

customer response

yes no

no, 40 yes, 60

Interpretation: The above table shows out of 100 Respondents, 60% respondents had the bike before this bike and 40% respondents don’t had any bike before this bike. Most of the respondents had the bike before this bike with 60%.

6. Which type the Two Wheeler do you possess ? a) Moped

b) Scooter

Type of vehicle Moped Scooter bike

c) Bike No. of customers 15 20 25

68

25

25 No. of customers

20 20 15

15

10 5 0 type of two wheeler Moped

Scooter

bike

Interpretation: from the above analysis we come to know the customers earlier usage of vehicle. Most of the customers used the bikes before purchasing this bike. More than 40% of the customers used to have only bikes earlier.

7. Would you tell me why you brought Hero Honda? a) Technology

b) Style, look

c) Mileage

d) After sale services

e) Brand image

f) comfort

Customer Opinion Technology Style, look

No. of customers 8 14 69

Mileage After sale service Brand image Comfort

Technology

No. of customers

20

18

15 10

18 3 9 8

Style, look

14

Mileage 8

5

9

8

After sale service Brand image

3

0

Comfort

customer preference

Interpretation: This question is meant to know the customers preference and their likes for shifting to Hero Honda.Most of the customers who are using the Hero Honda preferred Hero Honda only because of its mileage.

8. What factors that influenced you while purchasing Hero Honda? a) TV ads

b) Paper ads

c) Friends

d) Test Drive

Influencing factors TV ads Paper ads Friends Test Drive

No. of customers 26 16 55 3

70

No. of customers

60

55

50 40 30

26

20

16

10 3 0 influencing factors TV ads

Paper ads

Friends

Test Drive

Interpretation: This question is meant to know the source of awareness for customers regarding the bike.Most of the customers of hero honda came to know about the bike through friends and relatives.

9. While purchasing hero honda which other brands of bike did you consider? a) Bajaj Pulsar

b) TVS Apache

c) Honda Shine

d) any other___________

Bike considered by customers

No. of customers

Bajaj Pulsar

42

TVS Apache

12

Honda Shine

12

Any other

34

71

No. of customers

45 40 35 30 25 20 15 10 5 0

42 34

12

Bajaj Pulsar TVS Apache Honda Shine Any other

12

name of the bike

Interpretation: The tough competitors for the hero honda in the market are know from the above question. Most of the customers considered Bajaj pulsar, while purchasing the hero honda.

10. How do you rate the features of your bike?

Extremely

Satisfied

satisfied

Some what

Not satisfied

satisfied

Style,look

22

64

10

4

Mileage

22

55

23

0

After sale

20

48

17

15

Services

72

Brand

32

61

7

0

15

62

12

11

image Technology

style,look

70

No. of customers

60

mileage

50 40 30

aftersale services

20

brand image

10

technology

0

Interpretation: From the above analysis we come to know that most of the customers are satisfied with the features of the Hero Honda. And only a very few customers informed that they are not satisfied with the features of the Hero Honda.

11. Did your choice of selection of the bike met as per your expectations? a) Very Much

b) To large extent

73

Customers response Very Much To Large extent

No. of customers 82 18

product performance Very Much 82%

To Large extent 18%

Verymuch To Large extent

Interpretation:

We can know whether the customer is satisfied or not with the

performance of the bike from the above question. Majority of the customers i.e. more

74

than 80% of the customers are very much satisfied with the performance of the Hero Honda.

12. How would you rate your satisfaction about after sale services?

Extremely

Satisfied

Some what

Not

satisfied 26 33

65 55

satisfied 8 9

satisfied 1 3

queries Timeliness (i.e. repair to the

20

54

20

6

Bike were done very prompt) Dependability (i.e. any query

15

53

23

9

Politeness and Courtesy Attention to answer Your

and complaint regarding to Repairs would be taken care of) 70 65 60

55

54 53

No. of customers

50

Politeness and Courtesy 40

Attention to answer Your queries

33 30 20

26 20

20 15

Timeliness

23

Dependable

9

10

8 1

0 extre mely satisfied

satisfie d

some what satisfied

3

6

9

not satisfie d

Customers response

Interpretation: From the analysis we come to know that most of the customers are satisfied with the various aspects of the after sale service. And only very few customers infer that they are not satisfied with the aspects of after sale service.

75

13. How would you rate your overall satisfaction about after sales services? a) Extremely satisfied

b) Satisfied

c) Some what satisfied

d) not satisfied

Customers response Extremely satisfied Satisfied Some what satisfied Not satisfied

No. of customers 28 60 9 3

60

60

No of customers

50 Extremely satisfied Satisfied

40 30

28

Some what satisfied Not satisfied

20 10

9 3

0 customer reaction

Interpretation: The service quality of the dealer is known from the question. Most of the customers are satisfied with after sale service, only a very few customers infer that they are not satisfied with the after sale service.

76

14. In your opinion how can dealer attract and satisfy the existing customer? a) Gift offer (during special occassion) b) Extend service period c) Toll free number (for emergency) d) Any other_______________ Offers Gift Offer (during special occassion) Extend service period Toll free number (for emergency) Any other

No. of customers 38 42 15 5

Interpretation: Most of the customers expect for extension in the free service period given by the dealer. From this question we come to know the most favorite offer liked by the customers.

77

15. Would you like to suggest the Hero Honda Bike to others? a)Yes b) No Customer response Yes No

No. of customers 92 8

customer response

Yes, 92 Yes No

No, 8

Interpretation: Most of the customers inform that they suggest the Her Honda bike to their friends and relatives. From this we come to know how buzz marketing or word of mouth helps in promoting the product in the market.

OBSERVATION AND FINDINGS 78

As a result of the research work and the subsequent interaction with the consumers in the market an in-depth study report of motorcycle market was made. The study reveals the exact position of motorcycle companies and response of consumers to their perception tool. Market condition could be observed minutely and closely enabling me to formulate my views and opinion about the market.

The major observations and findings:1. More than 45%of the respondents felt the ownership of Motor cycle as necessity, while 30% of them felt it is as comfort. 10% of the respondents felt it is as luxury and 15% of respondents felt it is as status.

2. 49%of the respondents were satisfied with the after sales service of Hero Honda, while 44% felt it as good, 5%as bad and2% as excellent 3. 65%of the respondents felt that the price of Hero Honda as economical, while 04%of them felt it as expensive and 31% of them felt that the price as moderate.

4. When asked about the opinion on Hero Honda motorcycles advertisement 31% have not seen the advertisement, while69% have seen the advertisement and gave their opinion as 17% as excellent, 48%as very good and 30%as ok.

5. There are many criteria’s considered by customers while choosing the motorcycle company or particular model.

Here I found, 38%customers

considered mileage factor while selecting any variety.

6. Customers have right to expect from company. 32%customers expect long service from the company.

7. With out proper motivation no one will buy the particular motor cycle it is found that 23% customers affected by work of mouth, 16% by sales man, 54% by reliability and 07% by dealers.

8. It is observed that Hero Honda is a market leader in motorcycle industry.

79

CHAPTER - V

80

SUGGESTIONS  Target segment for bikes should be below the age group of 25-35 years.  Please upgrade the 100cc Passion plus bike to 125cc bike and also introduce the bike in to market with a self starter engine.  At high speed body of the Passion plus are shaking.  Maintenance is heavy.  Gear problem exists in Splendor.  In Passion plus problem is with head light focus.  Pick up should be increased to all bikes, especially in Passion plus.  Weight of new Passion plus 2008 is very low, it should be increased.  Compared to the old Passion plus model the new models labels and colors are not good. It must be rectified.  The new Passion plus launched into the market is of old style and old model, so please upgrade the bike with new look and style.  The company throughout its R&D needs to improve fuel efficiency of all bikes.  Road show, participations in Industrial exhibitions and sales campaigns need to be conducted regularly.  The quality of the new Passion plus has drastically reduced when compared to the old Passion plus, so please try to rectify it.  Most of the customers are asking for extended service period.

81

 To retain the old customers, the company has to give them surprise gifts on special occasions like birthdays and festivals etc.,

For servicing:

 Mechanics should call back the customers if they find any problems in the vehicle during servicing.  At least one experienced mechanic should be appointed in order to cope up with mileage problem.  Number of mechanics should be increased.  The service men are using the customer’s bikes for their own purpose when the customer gives the bikes to the service. This must not be done by them, management should take proper steps to avoid this kind of actions.  The service men at the authorized dealers are unable to take care of the bike and they are unable to resolve the queries and the problems told by the customers regarding the bikes.

82

CONCLUSION

Market of Hero Honda is very wide. Lot customers have been satisfying with the different models of bikes and their good service. Customers satisfied with the price of hero Honda bike which will suitable for their economical levels Company should aim at advertising not only to capture the market but also strive in retaining such captured market. The company should take survey for the benefit of the company. It was found even though company performing well; there is lot of market to be captured.

Hero Honda got a brand name in the customers and in the market also Thus Business world is trying to get closer to the customers by adapting a key survival strategy. “Don’t just sell, but satisfy: Don’t just satisfy but pamper don’t just pamper, but charm your customers.

83

ANNEXURE

84

QUESTIONNAIRE Respondent profile: a) name : b) Address: c) Phone No: Gender:

a) male

b) female

1. Specify your Education: a) Non-Graduate

b) Graduation

c) PostGraduation

d) Postgraduation professional

2. Specify your Occupation: a) Student

b) Employee

c) Self Employee

3. Specify your Income level: a) 5000-10,000

b) 10,000-15,000

c) 15,000-20,000

d) 20,000above

4. Could you let me know when did you purchase your bike (Hero Honda) 85

a) Below 6months

b) 6-1years

c) 1-2years

d) above 2years

5. Do you own any other bike other than Hero Honda? a) Yes

b) No

If no go to 11Q

6. Which Type of Two wheeler do you possess? a) Moped

b) Scooter

c) Bike

7. Could you please tell me why you brought Hero Honda? a) Technology

b) Style, look

c) Mileage

8. What are the factors that influence you while purchasing Hero Honda? a) TV ads

b) Paper ads

c) Friends

d) any other_________

9. While purchasing Hero Honda which other brands of bike did you consider? a) Bajaj Pulsar

b) TVS Apache

c) Honda Shine

d) any other___________

10. How do you rate the features of your bike?

Extremely

Satisfied

satisfied

Some what satisfied

Style,look Mileage After sale Services Brand image Technology

86

Not satisfied

11. Is your selected product (Hero Honda) performance met your expectations? a) Yes

b) No

12. How would you rate your satisfaction about after sale services?

Extremely

Satisfied

Some what

Not

satisfied

satisfied

satisfied Politeness and Courtesy Attention to answer Your queries Timeliness (i.e. repair to the Bike were done very prompt) Dependability (i.e. any query and complaint regarding to Repairs would be taken care of)

13. How would you rate your overall satisfaction about after sales services? a) Extrmely satisfied

b) Satisfied

c) Some what satisfied

d) not satisfied

14. In your opinion how can dealer attract and satisfy him existing customer? e) Surprise gift (during special occassion) f) Extend free service period time g) Toll free number (for emergency) h) Any other_______________

15. Would you like to suggest the Hero Honda bike to others? a) Yes

b) No

87

BIBLIOGRAPHY:

REFERENCE BOOKS: PRINCIPLES OF MARKETING

KOTLER, ARMSTRONG

MARKETING RESEARCH

G.C.BERRY

WEBSITES: www.herohonda.com www.phoenixindia.com www.wikipedia.com

AUTOMAGAZINES: OVERDRIVE NEWS PAPERS: THE TIMES OF INDIA THE HINDU 88

89