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INTRODUCTION
The project is all about measuring the customer satisfaction in Hero motors. For the past
few years every company is trying to satisfy its customers. The emphasis is on ways of
retaining customers, then on attracting new customers. It is easy to attract new customers then
to retain old customers. So, companies are trying to focus on this aspect of customer’s
satisfaction.
The sale of a product does not end with the sale transaction but it is the point at which
the original marketing concept starts. The marketer has to see that whether the customer
satisfied with that particular product/service or not. The post purchase behavior is important for
a marketer. If there is any cognitive dissonance in the minds of the customers then that is
enough to lose a customer. Keeping this in mind the companies are giving more importance to
customer satisfaction.
This project work has been done to find out whether a customer is satisfied or
dissatisfied, also to measure the level of the customer satisfaction and provide this feedback to
the company. The first phase of the project involves the collection of information from the
customers for interpreting the characteristics based on which the customer feels satisfied or
dissatisfied. This information is collected by preparing a structured questionnaire. The
questionnaire consists of both open-ended and closed-ended questions. The questionnaire is
designed in such a way that a customer feels convenient to answer.
The collated information through the questionnaire is analyzed and presented in a
statistical form. The findings are listed and suggestions to solve problems faced have been
given in the suggestion part.
Page 1
INTRODUCTION TO CUSTOMER SATISFACTION
Whether the buyer is satisfied after purchase depends on the offers performance
in relation to the buyer expectation. In general satisfaction are a person’s feelings of pleasure or
disappointment resulting from comparing a products perceived performance relation to his/her
expectations. If the performance falls short of expectation, the customer is dissatisfied. If the
performance matches the expectation customer is satisfied. If the performance exceeds the
expectation the customer is highly satisfied.
Customer satisfaction cannot be very difficult. After all you either satisfied with
the services you receive or you are not. If you don’t you are not. If it is that easy, then
obtaining people's opinion about how satisfied they are with relatively straight forward matter-
or is it? Customer satisfaction is a marketing tool and a definite value added benefit. It is often
perceived by customers as important as the primary product or service your organization offers.
It looks at what is involved from 3 different angles, the first is from the view of an organization
wishing to understand, and measures, how satisfied its customer are with the products and
services they receive from it. The second is from the perspective of a research agency that has
been asked to obtain feedback from customers and about their experiences when dealing with
companies. Finally it considers the issue from the perspective of consumers who participate in
surveys, including both business customers and members of general public
MEANING OF CUSTOMER SATISFICATION
Customer satisfaction is a business term, is a measure of how products and services
supplied by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and part of the four prospective of balanced score card.
In a competitive market place were businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy customer satisfaction drives successful private sector business.
High performing businesses have developed principles and strategies for achieving
customer satisfaction. This paper presents a framework or set of ideas for using customer
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satisfaction principles and strategies to improve the quality responsiveness, and possibility of
public sector privately provided services in vulnerable communities
The framework suggested that resident who live in tough neighborhoods can be supported
through customer satisfaction strategies to become empowered individuals who informed
perspectives influence decisions about what, how, when, and where services are available to
them.
Customer satisfaction is the customer’s response to the evaluation of the perceived discrepancy
between prior expectation and the actual performance of the product as perceived after its
consumption.
DEFINITION
Cocotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a
feeling developed from an evaluation of the experience."
HERE, the timing of satisfaction response is driving consumption.
BUT there is general agreement with kotler (2003) that "customer satisfaction is a
person's feeling of pleasure or disappointment resulting from comparing a products perceived
performance in relation to his or her expectation." In short customer satisfaction is "The
provision of goods or services which fulfill the customer expectation in terms of quality and
service, in relation to price paid."
IMPORTANCE OF CUSTOMER SATISFACTION
It costs at least 7 times more to source a new customer than it does to retain existing
one a 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied' customer will tell 14-
15 people.
Companies can boost profits anywhere from 25% to 125% by retaining a mere 5%
more of their exciting customers.
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Totally satisfied customers were 6 times more likely to use that services and commend
it than ' satisfied' customers.
Customers who have a bad experience with you and do not complain are only 37%
likely to still do business with you.
Customers who have an opportunity to complain and the complaint is achieved are 95%
likely to still do business with you.
FACTORS OF CUSTOMER SATISFACTION
1. Service of quality
2. reliability of service
3. knowledge of the staff
4. Being kept informed of progress
5. The way service kept its promises
6. The way the service handled any problem Friendliness of staff
7. How sympathetic staff were to your needs
8. Speed of enquiries
9. Number of time had to contact the service.
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3. INDUSTRY PROFILE
The Indian two-wheeler contributes the largest volume amongst all the segments in automobile
industry. Though the segment can be broadly categorized into 3 sub-segments viz. scooters,
motorcycles and mopeds; some categories introduced in the market are a combination of two or
more segments e.g. scooters and step-thru. The market primarily comprises five players in the
two-wheelers segment with the most of the companies having foreign collaboration with well-
known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries
in India. And growth anticipated is higher than the 16 percent achieved in the past 10 years
The automobiles sector is divided into four segments-two wheelers(mopeds, scooters,
motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multi-
purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers
(passenger carriers and good carriers).
The industry is one of the key drivers of economic growth of the nation. Since the globalization
of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic
route, Indian automobile sector has come a long way. Today, almost every global auto major
has set up facilities in the country.
The world standings for the Indian automobile sector, as per the Confederation of Indian
Industry, are as follows:
Largest three-wheeler market
Second largest two-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment
The sector has shown a sluggish growth of 12 percent in 2013. The trend is likely to stay with a 10
percent growth outlined for 2014 citing high ownership costs (fuel costs, cost of registration, excise
duty, road tax) and slow rural income growth. Solid but cautious growth is expected over the next few
years. However, from a long-term perspective, rising incomes, improved affordability and untapped
markets present promising opportunities for automobile manufactures in India. According to Macquarie
equities research, sale of passenger vehicles is expected to double in the next four years
Page 5
Two Wheeler & its role in Indian Context:
As the cities grow & suburbs expand, transportation needs becoming more & more
acute, with mounting pressure on its public transportation for which two wheelers are ideal.
The two-wheeler Industry today has a significant role in the Indian economy, with an
annual turnover of Rs. 9000 crores and compounded average growth of 10%. In recent years,
it is of the few industrial sectors in the growth phase today considers personal transportation as
one of the basic needs.
The two-wheeler industry basically comprises mopeds, scooters, scooters and
motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups,
offering company. This category dominated by TVS SUZUKI, which has a market share of
50% today. The other major players in this segment include KINETIC ENGG., HERO
MOTORS and BAJAJ AUTO.
Scooters, which found largest segment in the industry (37 percent) is dominated by
BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and
technology to the Indian customers. However, dominance of this category has been declining
because of shift in the customer preferences.
Major part of the growth in the two-wheeler industry has come from motorcycle
especially, the Indo-Japanese 100cc motorcycles, which are considered, fuel efficient, reliable
and suited for rough roads.
Scooters also growing at a fast phase and are being increasingly perceived as a better
option providing convenience and motor style, by urban customers. In this category, TVS
Scooty holds a dominant market share.
With sales of over three million vehicles, India is the second largest two-wheeler
market in the world. Vehicle has become a necessity for day-to-day busy life, with the
accelerated industrial and business activity in a liberalized environment. However, given the
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limited purchasing power and to high cost of cars, majority of the middle class vehicle users
prefer two wheelers.
With sales of over million vehicles, India is the second largest two-wheelers market in
the world. China is the market leader with around 51 percent of the Asia Market, India,
Thailand; Indonesia & Taiwan are the other key markets for two-wheelers with market share of
19 percent, 10 percent, 9 percent and 5 percent respectively.
In the last four to five years, the two-wheeler market has witnessed a market shift
towards motorcycles at the expense of scooters. In the rural areas, consumers have come to
prefer sturdier bikes to withstand the bad road conditions. In the process the share of
motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically
from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year
2000-01. The Euro emission norms effective from April 2000 led to the existing players in the
two-stroke segment to install catalytic converters. 4-stroke motorcycles are now replacing all
the new models. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in
price reduction, which has aided in propelling the demand for motorcycles. Fierce competition
has also forced players to cut prices of certain models.
Competition has intensified over the last couple of years altering the dynamics in the
motorcycle segment with various companies planning to cash in on this spurt in demand by
calling off their JVs like Suzuki Motors planning to break off with TVS. Recently, Honda
Corporation of Japan announced its intentions to set up a 100% subsidiary to manufacture
scooters and motorcycles. Other players in the two-wheeler industry include Bajaj Auto Ltd.,
Kinetic Motor Co.Ltd. LML and Escorts Yamaha. Low interest regime has helped in reducing
cost of loans, which will help in boosting sales of 2-wheelers, since 80% of the two-wheelers
are credit –stimulated.
The two-wheeler industry is passing through a critical but interesting phase. For many
years, it was growing continuously but the turning point came in 1996=97 when it started
slowing down. The impact was really (MI) felt in the next year when the overall growth was
hardly two percent. This was also possible only because the motorcycle segment showed a
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healthy growth of 15 percent. The scooter segment went down by 3 percent and mopeds by 6
percent.
Another highlight is that the motorcycle sales have surpassed the scooter sales for the
first time in 1998-99. Until then, motorcycle sales were always trailing behind.
The net result is that motorcycles now account for 41 percent of the two-wheeler
market, while scooters account for 36 percent. Mopeds have been able to hold their own at
about 21 percent.
GROWTH OF MOTORCYCLES
It is therefore not surprising that every major player is trying to get into the Motorcycle
market to have a piece of the cake.
Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by Bajaj
with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13 percent. Now LML and
Kinetic have announced their plans to manufacture motorcycles, which are likely to come in
the market by next year. The battle is expected to be fierce but the consumer will be the greater
beneficiary.
The growth in motorcycles is slowly losing its hold. It is considered a family vehicle
but perhaps there is competition from the second hand car markets where prices have fallen
down rapidly. A1992 Maruti 800 is now available for just 70,000.
The scooter manufactures have to watch this phenomenon and bring our many new
product variants in the right price slots to sustain their shares in the market. The moped market
has been steady with an average growth of 3 percent. It is dominated by TVS which holds 48
percent market share followed by Kinetic and Majestic Auto at 23 percent and 18 percent
respectively.
In each segment, there is a wide gap between the first two contenders, which makes
their products positioning and marketing strategies most interesting. The two wheelers market
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seems to be maturing. There are the usual their conventional segment of scooters, mopeds and
motorcycles. Two new segments are being created.
NEW SEGMENTS
A Step is through segment like Kinetic K4-100, Honda Street, Bajaj M-80, which is
quite close to the motorcycle segment. The other segment is scooterettes or mini scooters in
which vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj
Sunny/Sprite/Safire and LML trendy can be considered. These are vehicles under 75cc and
largely targeted at the youth market such as college students, young boys and girls and new
couples. They get the advantage of lower excise duty at 16 percent as compared to 24 percent
applicable over 75 cc. The trend is towards push button start vehicles.
Among the majors in the two-wheeler industry, first quarter figure for the current year of
some players has been encouraging. The company sold 313,303 units last month as compared
to 325,360 units in the same month last year. With this, BAL has recorded as 87 percent
growth in the motorcycle segment in the first quarter with sales of 130,577 units (93,631 units
in the corresponding period last year) BAL estimates market share of the first quarter-Geared
scooters 75.9%, unguarded scooters- 16.5%, Step-thrus-72.3% and motorcycle-20.5%.
In the scooters segment, sales of Bajaj Sunny and Bajaj Spirit increased by 170 percent
to 7,876 units. First quarter sales registered an impressive 78 percent growth with sales of
19,562 (10,995 units). The overall sales grew by 9.3 percent in the quarter when the company
sold 3.24 lakh vehicles.
BAL however reported a decline in sales of scooters by 15.6 percent in the first quarter.
The company hopes to increase the share of motorcycle in its product basket from 18 percent
last year to 30 percent by 2003-04.
Hero MotoCorp Ltd enjoys tremendous brand equity in the motorcycle segment.
Kinetic Motors, another important player, managed to grow in 1999-2000, when the
scooters segments a whole slipped by around 5 percent. TVS Suzuki, a motor two-wheeler
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market, has reported a growth of 13 percent in the first quarter period and sold 2.19 lakh units.
Sales of motorcycles and scooters were up by 18 percent and that of mopeds by 8 percent over
the same period last year.
The current year therefore promises to be a testing time for the two-wheeler industry.
Industry pundits feel that an overall growth rate of 5 percent should be possible as against 9
percent projected earlier. The sales volume therefore is expected to be around 3.8 million in
2000-2001.
DRAMATIC CHANGES:
HeroMotoCorp is now world’s largest manufacturer of two-wheelers. The company has
benefited from the demand shift to motorcycles, as it focuses solely on this product segment
(although has a product called Pleasure in Scooter segment). With fuel efficiency and riding
comfort as the main selling points, HMC has been able to address a wide market and post
robust sales growth even after its separation from the Japanese major Honda.
The coming years will see increasing competition due to the parity in products
and price. The only differentiators will be technology, quality, product range and service.
Imaginative marketing will emphasize relationship building, customer satisfaction and
relationship. All is exploring new techniques such as direct marketing and institutional sales.
Some of them are taking the vehicle actually to the customer’s doorstep. Now the customer is
the king.
HISTORICAL DEVELOPMENT OF TWO WHEELER INDUSTRY
India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next to Japan and China in terms of the number of two-wheelers produced and domestic
sales respectively. This distinction was achieved due to variety of reasons as if respective
policy followed by the Government of India towards the passenger car industry, rising demand
for personal transport, inefficiency in the public transportation system etc.,
In Indian two-wheeler, industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country. Until 1958,
API and Enfield were the sole producers.
Page 10
In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers.
Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio of
Italy. The agreement expired in 1971.
In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter
segment. Although various Government and Private enterprises entered the fray for scooters,
the only new player that has lasted until today is LML.
Under the regulated regime, foreign companies were not allowed to operate in India. It
was a complete seller market with the waiting period for getting a scooter from Bajaj Auto
being as high as 12 years.
The motorcycles segment was no different, with only three manufacturers via Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were
two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the
motorcycle segment.
The two-wheeler market was opened to foreign competition in the mid 80’s. And
then the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100
cc bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low
power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke
bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90’s the major growth for motorcycle segment was brought
in by Japanese motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50’s, 60’s and70’s when the government prohibited new
entries and strictly controlled capacity expansion. The industry saw a sudden growth in the
80’s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm
vehicles in 1990.
The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in
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providing ease of use to the scooter owners. This helped in inducing youngsters and working
women towards buying scooters, who were earlier inclined towards moped purchases. In line
with this, the scooter segment has consistently lost its part of the market share in the
two~whee1er market.
The reasons for recession in the sector were the incessant rise in fuel price, high input
costs and reduced purchasing power due to significant rise in general price level and credit
crunch in consumer financing. Factors as if increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in either company reporting losses or fail in
profits.India is one of the very few countries manufacturing three wheelers in the world. It is
the world’s largest manufacturer and seller of three wheelers. Bajaj Auto commands a
monopoly in the domestic market with a market share of above 80%; Bajaj Tempo, Greaves
Ltd and Scooters in India share the rest.
The total number of registered two-wheelers and three-wheelers on road in India, as on
March 1998 was 27.9nm and 1 .7nin respectively. The two-wheeler population has almost
doubled in 1996 from a base of 12.6mn in 1990.
PENETRATION OF TWO-WHEELERS:
On a base of around 28mn vehicles on Indian roads and around 175mn households,
there were only 160 motorized two-wheelers per thousand households in FY98. This compares
poorly with countries like Thailand where it is around 600 per thousand households. Also with
a household size of 5.5 persons and more than one wage earner in about 60% of the
households, the potential for a second vehicle demand is also good.
The number of households in the low-income group has fallen since FY86 and has been
more pronounced in the post-reform period. On the other hand, the number of households in
the middle, upper middle and high-income groups that form the consumer base for two-
wheelers, have increased. Their share of the total number of households has increased from
10.6% in FY88 to 20.5% inFY96. This rising income profile however, has, been more
pronounced in the urban areas as average annual growth in industry surpassed that of
agriculture in the period FY93 to FY96.
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The Indian two-wheeler industry is highly concentrated, with
four players-
• Hero Motocorp motors Ltd., (HMML),
• Bajaj Auto Ltd., (Bajaj Auto)
• TVS Motor Company Ltd., (TVS)
• Honda Motor Ltd.,(HML)
4. COMPANY PROFILE
Page 13
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of
two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.
HeroMotoCorp is now world’s largest manufacturer of two-wheelers. The company has
benefited from the demand shift to motorcycles, as it focuses solely on this product segment
(although has a product called Pleasure in Scooter segment). With fuel efficiency and riding
comfort as the main selling points, HMC has been able to address a wide market and post
robust sales growth even after its separation from the Japanese major Honda.
VISION
The story began with a simple vision – the vision of a mobile and an empowered India,
powered by its bikes. Hero MotoCorp Ltd., company’s new identity, reflects its commitment
towards providing world class mobility solutions with renewed focus on expanding company’s
footprint in the global arena.
MISSION
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates. The company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on value
creation and enduring relationships with its partners.
STRATEGY
Hero MotoCorp's key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building activities and
ensure customer and shareholder delight.
Page 14
MANUFACTURING
Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located
in the state of Haryana in northern India. The third and the latest manufacturing plant are based
at Haridwar, in the hill state of Uttrakhand.
TECHNOLOGY
In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. It became the first company to launch the Fuel
Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June
2006.
Its plants use world class equipment and processes and have become a benchmark in leanness
and productivity.
Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate
and develop cutting edge products and processes
DISTRIBUTION
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and
service network now spans over to 5000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.
Supply chain management
As the Company prepares to produce a wider range of products, efforts are being taken to align
the supply chain and prime up its supplier base. During the year, the Company kick-started the
process of migrating its existing brands to the new brand. The exercise is expected to be
completed during 2012-13.
Page 15
During the year, the Company also commenced the process of working with its vendors to
develop new parts. The Company’s Supply Chain Management function is built on three
planks:
Cost
Quality
Sustainability
Tracking inventory cost effectively and efficiently is known to be a key source of competitive
advantage in the automobile industry. Hence, it comes as no surprise that cost leadership is the
Company’s prime focus area. Continual pressure on margins forced the Company and its
supply chain partners to find innovative and alternate ways to combat inflation. Considerable
attention was given to managing component inventory in the system, with double-digit growth
in inventory turnover. To align HR processes with the supply chain, top two HR consulting
firms in India are working with supply chain partners. The exercise is aimed at improving
robustness of people processes and resulting in a direct impact on quality, cost, productivity,
delivery and reliability. The move will enable supply chain partners move to the next orbit of
operational excellence. The Company initiated more than 30 quality improvement projects with
supply chain partners to provide better quality products to customers.
BRAND
The new Hero is rising and is poised to shine on the global arena. Company's new identity
"Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and
technology and creating global footprint. Building and promoting new brand identity will be
central to all its initiatives, utilizing every opportunity and leveraging its strong presence across
sports, entertainment and ground- level activation.
Directors
Founder Director and Chairman : Dr. Brijmohan Lall Munjal
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Managing Director and CEO : Mr. Pawan Munjal .
Board of Directors
Name of the person Nature of the Office
Mr. Sunil Kant Munjal Non Executive Director
Mr. Suman Kant Munjal Director
Mr. Paul Edgerley Non Executive Director
Mr. Pradeep Dinodia Director
Gen. (Retd.) V. P. Malik Director
Mr. Analjit Singh Director
Dr. Pritam Singh Director
Mr. M. Damodaran Director
Mr. Ravinath Director
Dr. Anand C.Burman Director
Dr. Brijmohan Lall Munjal
Mr. Munjal is the founder Director and Chairman of the Company and the
$3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of
the Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government
Corporate Governance
At Hero MotoCorp, it is the firm’s belief that the essence of Corporate Governance lies in the
phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the shareholders.
The Chairman and Directors are ''Your'' fiduciaries and trustees. Their objective is to take the
business forward in such a way that it maximizes ''Your'' long-term value.
Page 17
This Company is committed to benchmarking itself with global
standards for providing good Corporate Governance. It has put in place an effective Corporate
Governance System which ensures that the provisions of Clause 49 of the Listing Agreement
are duly complied with.
The Board has also evolved and adopted a Code of Conduct based on the principles of Good
Corporate Governance and best management practices being followed globally.
Headquarter and Branches
Corporate & Registered Office
Hero MotoCorp Ltd.
34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057, India.
Tel: +91-11-26142451, 26144121
Fax: +91-11-26143321, 26143198
Zonal Offices
East Zone
Hero MotoCorp Ltd
3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India.
Tel: +91-33-22810926 22810927, 22808922, 22811185
Fax: +91-33-22808923
Email: [email protected]
West Zone
Hero MotoCorp Ltd.
15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road,
Wakadewali Pune - 411 003, India.
Tel: +91-20-25511577, 25512161, 56012990-91
Fax: +91-20-25511266
Email: [email protected]
Page 18
North Zone
Hero MotoCorp Ltd.
F-126, Katwaria Sarai, Opp. Qutab Institutional Area,
New Delhi -110016, India.
Tel: +91-11-26533981-2, 47619300
Fax: +91-11-26533983
Email: [email protected]
South Zone
Hero MotoCorp Ltd.
No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage,
Indira Nagar, Bangalore – 560038, India.
Tel: +91-80-25550430, 25584436, 25582436, 25321139
Fax: +91-80-25594036
Email: [email protected]
GRADING POSITIVES
Market leadership, strong brand equity, professional management, high operating efficiency
and established scale economies. Strong financial profile characterized by healthy margins,
high profitability and cash generation. Potential upsides to our estimates: (1) HMCL sustains
its current market share, leveraging its brand equity, product performance and distribution
strengths; (2) industry growth exceeds our estimates over the medium term despite existing
concerns on macro-economic scenario; (3) HMCL betters the margins estimated by us via
sustained business growth and increases in operating efficiency even in the face of competitive
and cost pressures.
GRADING SENSITIVITIES
Page 19
Key sensitivities to our estimates include:
(1) Inflation in input costs not being neutralized by price increases because of competitive
pressures;
(2) High concentration on Executive segment;
(3) Intensifying competition from global players;
(4) Ability to develop in-house technical capability or form alternate technical tie-ups with
external institutions.
Company History - Hero Moto Corp
1983
- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
- Shareholders Agreement signed
1984
- Hero Honda Motors Ltd. Incorporated
1985
- First motorcycle "CD 100" rolled out
1987
- 100,000th motorcycle produced1989New motorcycle model - "Sleek"
introduced
1991
- New motorcycle model - "CD 100 SS" introduced
- 500,000th motorcycle produced
1992
- Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
Managing Director, Mr. Raman Kant Munjal
1994
- New motorcycle model - "Splendor" introduced
- 1,000,000th motorcycle produced
1997
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- New motorcycle model - "Street" introduced
- Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998
- 2,000,000th motorcycle produced
1999
- New motorcycle model - "CBZ" introduced
- Environment Management System of Dharuhera Plant certified with ISO-14001
by DNV Holland
- Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of
founder Managing Director, Mr. Raman Kant Munjal
2000
- 4,000,000th motorcycle produced
- Environment Management System of Gurgaon Plant certified ISO-14001 by
DNV Holland
- Splendor declared 'World No. 1' - largest selling single two-wheeler model
- "Hero Honda Passport Programme" - CRM Programme launched
2001
- New motorcycle model - "Passion" introduced
- One million production in one single year
- New motorcycle model - "Joy" introduced
- 5,000,000th motorcycle produced
2002
- New motorcycle model - "Dawn" introduced
- New motorcycle model - "Ambition" introduced
- Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh
and Zaheer Khan as Brand Ambassadors
2003
- Becomes the first Indian Company to cross the cumulative 7 million sales mark
- Splendor has emerged as the World's largest selling model for the third calendar
year in a row (2000, 2001, 2002)
- New motorcycle model - "CD Dawn" introduced
- New motorcycle model - "Splendor +" introduced
Page 21
- New motorcycle model - "Passion Plus" introduced
- New motorcycle model - "Karizma" introduced
2004
- New motorcycle model - "Ambition 135" introduced
- Hero Honda became the World No. 1 Company for the third consecutive year.
- Crossed sales of over 2 million units in a single year, a global record.
- Splendor - World's largest selling motorcycle crossed the 5 million mark
- New motorcycle model - "CBZ*" introduced
- Joint Technical Agreement renewed
- Total sales crossed a record of 10 million motorcycles
2005
- Hero Honda is the World No. 1 for the 4th year in a row
- New motorcycle model - "Super Splendor" introduced
- New motorcycle model - "CD Deluxe" introduced
- New motorcycle model - "Glamour" introduced
- New motorcycle model - "Achiever" introduced
- First Scooter model from Hero Honda - "Pleasure" introduced
2006
- Hero Honda is the World No. 1 for the 5th year in a row
- 15 million production milestone achieved
2007
- Hero Honda is the World No. 1 for the 6th year in a row
- New 'Splendor NXG' launched
- New 'CD Deluxe' launched
- New 'Passion Plus' launched
- New motorcycle model 'Hunk' launched
- 20 million production milestone achieved
2008
- Hero Honda Haridwar Plant inauguration
- New 'Pleasure' launched
- Splendor NXG lauched with power start feature
Page 22
- New motorcycle model 'Passion Pro' launched
- New 'CBZ Xtreme' launched
- 25 million production milestone achieved
- CD Deluxe lauched with power start feature
- New 'Glamour' launched
- New 'Glamour Fi' launched
2009
- Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched
- Splendor completed 11 million production landmark
- New motorcycle model 'Karizma - ZMR' launched
- Silver jubilee celebrations
2010
- New model Splendor Pro launched
- Launch of new Super Splendor and New Hunk
2011
- New licensing arrangement signed between Hero and Honda (Hero Honda
is renamed as Hero)
- Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme,
Karizma
- Crosses the landmark figure of 5 million cumulative sales in a single year
2012
- 45% market share in the domestic two-wheeler market
- 56% market share in the domestic motorcycle market
- Declared a dividend of 2,250% in 2011-12, i.e. 45 per equity share of the face value
of 2 per share
Awards & Recognitions on 2011
Page 23
Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the
"Bike Manufacturer of the Year" at the Economic Times Zig Wheels Car and Bike
Awards.
CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new
corporate entity" by CNBC Awaaz Consumer Awards
"Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz
Consumer Awards
Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for
Hero Good Life
"Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion
Marketing Award of Asia Order of Merit for Hero Good Life
Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
Trusted Brand" 2011 serve
Profile of target customer
Hero MotoCorp basically targets the every each and segments of the market. So there are some
products like splendor, CD- dawn (rs40000-50000) they made for lower segment of the market
and glamour, passion, CBZ, karizma (rs above 50000) for the upper segment of the market.
And now they are trying to target the young people of the market.
India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, has
announced its intention to expand globally, with plans to sell vehicles on three continents and
nearly double its unit sales within five years. The company, whose family shareholders bought
out its former partner Honda Motor this year, said it would invest about $1bn to expand
internationally in south-east Asia, Africa, and Central and Latin America.
• Customer Relationship Activity
For making a better relationship with customer they always use genuine parts in their product.
And after selling they have the services and maintenances. Their constant endeavor is to
support the company's mandate of providing highest level of customer satisfaction by taking
Page 24
good care of customer’s two-wheeler service and maintenance through their vast network of
more than 2100 committed dealers and service outlets spread across the country.
Apart from that hero motocorp focused on cleanliness and other aesthetics of the service
stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance
the in house experience of the customers at those “customer touch point”. To ensure that
millions of customers in the rural area are not left waiting for adequate service as it is
impossible for the company to introduce service station at every nook and corner of the
country, mobile service stations are regularly arranged with prior intimation to public about the
rout that the mobile workshop would take when passing through that region so that customers
can come and get their two wheelers serviced. All these activities are aimed to increase the
customer loyalty and thus retaining customers.
Good life: Customer Loyalty Program
Good Life is a Customer Relationship Program introduced a decade ago, which Endeavour’s to
enhance customer satisfaction and initiate increased levels of member engagement.
The main objective of this Program is to make our customers our Brand Ambassadors to
generate referral sales and boost service visits.
The Good Life Program has enabled the Company build a consolidated base of 10 million plus
loyal customers; in the process, a new distribution platform has emerged. GoodLife now
contributes a huge 14% to the Company’s overall sales (purely through referrals), in addition to
incremental sales. Good Life has emerged as the largest Customer Relationship Program in
India, witnessing additions of 0.38 million members each month. During the year, the
Program’s member base shot up 16%, with new 4.51 million transactions being undertaken.
Besides aiming to increase the number of customers and volume of transactions, the Program
seeks to enhance revenue opportunities for dealers as well. Different levels of engagement have
been in-built into the Program with the aim of increasing its people engagement initiatives.
Some of these are: transaction-based rewards, exclusive event invites, personal accidental
insurance, service continuity bonus, transaction benefits on special occasions (birthdays,
anniversaries), quarterly newsletters and interaction through a program website.
Page 25
The Program began with a member transaction booklet, a replica of the Passport Booklet,
which helps in engaging with customers. However, the Program has been e-enabled now to
improve its geographical reach and efficiency level. It runs on the backbone of a robust and
engaging front-end and a sound, solid and technical back-end. The Program includes
customized technology, combining a mix of Magnetic Swipe/Bar Code. Personalized
Membership Cards are shared with Good Life members, which are easy to carry, transact and
earn/redeem rewards. Online member profiling and real-time customer feedback module (via
questionnaires) are some more salient features of the Program. During the year, Good Life has
been the recipient of several accolades and awards on national and international platforms.
Some of these were:
‘Order of Merit’ in PMAA awards 2011 under ‘Best Activity Generating Short or Long
Term Brand Loyalty’ category
Colloquy Award under Innovation in Loyalty Marketing (International) category
Qualified as ECHO Finalist (5th place) in 2011 DMA International ECHO™ Awards
competition Loyalty Award under Auto Sector
PORTFOLIO OF PRODUCTS
Hero MotoCorp offers wide range of two wheeler products that include motorcycles and
scooters, and has set the industry standards across all the market segments.
100cc
Bike category
SPLENDOR PLUS
SPLENDOR NXG
SPLENDOR PRO
PASSION PRO
Page 26
PASSION XPRO
MAESTRO
PLEASURE
HF DAWN
HF DELUXE
125cc
Bike category
GLAMOUR
SUPER SPLENDOR
IGNITOR
Glamour PGM FI
150cc
Bike category
ACHIEVER
KARIZMA
KARIZMA ZMR
IMPULSE
HUNK
XTREME
Termination of Honda joint venture
In December 2010, the board of directors of the Hero Honda Group has
decided to terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero
Honda. Under the joint venture Hero Group could not export to international markets (except
Page 27
Sri Lanka) and the termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda for the technology in their
bikes. So there are concerns that the Hero Group might not be able to sustain the performance
of the Joint Venture alone.
The Japanese auto major will exit the joint venture through a series
of off market transactions by giving the Munjal family—that held a 26% stake in the company
—an additional 26%. Honda, which also has an independent fully, owned two wheeler
subsidiary—Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount
and get over $1 billion for its stake. The discount will be between 30% and 50% to the current
value of Honda's stake as per the price of the stock after the market closed on Wednesday.
The rising differences between the two partners gradually emerged as
an irritant. Differences had been brewing for a few years before the split over a variety of
issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite
a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over
high royalty payouts to the Japanese company. Another major irritant for Honda was the
refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare
parts business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter
India (HMSI).
As per the arrangement, it will be a two-leg deal. In the first part,
the Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated
special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge
loans. This SPV would eventually be thrown open for private equity participation and those in
the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital,
and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing
as well as future models.
FUTURE INVESTMENT:
Page 28
Hero Motocorp Ltd formed a joint venture with Magneti Marelli to
develop and manufacture new fueling systems.
MARKET SHARE OF THE COMPANY
AS PER MARCH 2013
Page 29
Hero motocorp Bajaj Honda TVS Others
42.12
20.4 19.53
12.74
5.21
HERO MOTOCORP shows that it’s a market leader for the march 2013.
Though it lost 3.23% of its share for the year ended December 2013, is a market leader
in india.
REVIEW OF LITERATURE
Planning for the future to achieve the long-term objective is integral to the
survival and growth of every business. Strategic planning today has to take into cognizance the
rapid changes in technology, increased competitiveness and the turbulent business
environment, also with the world becoming one big global village.
Strategy covers every aspect of business from business reengineering, new business
development, product development and brand positioning to advertisements promotional
campaigns, media and publicity. It is a game of innovation.
Page 30
In fact, marketing people are involved in marketing 10 types of entities; goods,
services, experience, events, persons, places, properties, organizations, information and ideas.
Marketing management is the art and science of choosing target markets and getting, keeping
and growing customers through creating, delivering and communicating superior customer
value.
India is second largest manufacturer and producer of two-wheelers in the world. It
stands next to Japan and China in terms of the number of two wheelers produced and domestic
sales respectively.
Indian two-wheelers industry made small beginning in early 50’s when Automobile
products of India (API) started manufacturing scooter in India. Hero was established on 13th of
April 1984. The Indian two wheelers Industry can be broadly classified as scooter,
motorcycles and mopeds/scooters. In last six years domestic two-wheelers has seen structural
charges. This can be seen from the change in composition of two wheeler sales, where the
motorcycles have gained market share from the scooter and moped or scooters segments.
The consumer is now faced with proliferation of brand models. Getting new customers as well
as retaining them is an important task of manufacturers. So service after sales is very
important. A satisfied customer brings in more name and goodwill to the company, which is
why customer satisfaction is given more importance in today’s competitive world. A study on
this aspect with Hero two-wheelers at Hero MotoCorp Ltd was made.
NEED FOR THE STUDY
Marketing starts with identifying the needs of customers and ends in satisfying those wants.
The goal of marketing is to attract new customers by promising superior value and to keep
current customers by delivering satisfaction based on their preferences retaining them.
Without customer, no market exists. As the customers are regarded as the superiors in
today’s market, the level of satisfaction and their preferences should be keenly studied.
Page 31
The two-wheeler industry has been expanding rapidly. Gone are the days when
possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity.
Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas
the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles.
Not only this, this industry has also customers ranging from all demographic segments.
It has been common sights that even school going children are driving two-wheelers. The
women customers are also increasing due to increase in women literacy and employment.
Getting a new customer is difficult, than retaining a current customer is a more difficult
one and not only that it is estimated that the cost of attracting a new customer is five times the
cost of retaining current customer. It requires a great deal of effort to induce satisfied customer
to switch away from their current preference. Thus, customer satisfaction is been given top
priority in today’s competitive world.
Therefore, keeping the above stated objective in mind, this study was conducted to ascertain
the customer’s satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this,
a detailed study of customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.
STATEMENT OF THE PROBLEM
This Project has been titled “A study of customer satisfaction towards Hero motors Bikes after
the split with Honda."
To study the new market of Hero motors after the split with Honda, the consumer response to
the bike and needed improvement area
The study would help to understand the consumer satisfaction to their expectation.
OBJECTIVES
Page 32
To measure the satisfaction levels of customers of Hero Motocorp.
To know services rendered by the dealer.
To suggest various measures necessary to improve the service.
To compare satisfaction level of bikes with other brands
LIMITATIONS
I have observed the following limitations in the course of my study.
1. The areas which were selected were limited only to Nandyal i.e., the findings are regional
and do not represent the state or country.
2. Time constraints hampered the study.
3. There may be respondent’s bias.
4. The split happened 2 years before, the study not giving the long run result of Hero Motors
Bikes
METHODOLOGY OF THE STUDY
The information required for this study obtained was basically through two sources.
Primary Data:
Primary Data has been gathered by a survey through a structured questionnaire.
Secondary Data:
Page 33
Secondary Data comprises of information obtained from annual reports, brochures,
manuals websites etc.
Research design : Descriptive research
Research approach : Survey Method
Research instrument: Structured Questionnaire
Sample size : 100
Sample technique : Convenience Sampling
Statistical tool : CHI-square test, Percentage analysis,
bar charts, pie-charts.
DATA ANALYSIS AND INTEPRETATION
1. SHOWING TYPE OF HERO TWO WHEELER MODELS OWNED
Page 34
Inference: - From the
above table it is inferred that,
30% of respondents held
Passion Pro and 25% of
respondents held
Splendor Plus,
Splendor Pro 10%,
and Passion Xpro 9%. The
remaining two
wheelers are very less
in %. The table is inferred
that some of the models
are very less in market.
This formed the basis of
the study.
2. AGE OF RESPONDENTS
Page 35
Num Name of Hero two
wheeler
No. of
respondents
1 SPLENDOR PLUS 25
2 SPLENDOR PRO 10
3 PASSION PRO 30
4 HUNK 2
5 GLAMOUR 3
6 KARIZMA ZMR 2
7 KARIZMA 1
8 MAESTRO 3
9 SUPER SPLENDOR 2
10 SPLENDOR NXG 5
11 PLEASURE 6
12 HF DAWN 1
13 PASSION XPRO 9
14 IMPULSE 1
Total 100
18-25 25-30 >300
5
10
15
20
25
30
35
40
45
30 29
41
Inference:
From the above table it is inferred that 41% of the people are morethan 30, 29% are of 25-30
and 30% are 18-25.
3. INCOME PER ANNUM
Page 36
AGE(years) No. of respondents
18-25 30
25-30 29
> 30 41
IINCOME No. of respondents
Lessthan 2 lakhs 24
2-3 lakhs 26
3-4 lakhs 40
Greaterthan 5 lakhs 10
< 2 lakhs 2-3 lakhs 3-4 lakhs > 5 lakhs
2426
40
10
Inference: -
From the above table it is observed that, 40 % of people are earning 3-4 lakhs,
24% below 2 lakhs, 26% 2-3 lakhs and 10% are > 5 lakhs.
4. SATISFACTION LEVELS OF CUSTOMERS REGARDING MILEAGE
Page 37
SATISFACTION LEVEL No. of respondents
Satisfied 48
Highly satisfied 33
Indifferent 02
Dissatisfied 11
Highly dissatisfied 06
satisfied highly satisfied indifferent dissatisfied highly dissatisfied
23
33
2
11
6
Inference
From the above table it is inferred that 81% are satisfied with the mileage and 17%
are dissatisfied.
5. SATISFACTION LEVELS OF CUSTOMERS BASED ON STYLE:
Page 38
SATISFACTION LEVEL No. of respondents
Satisfied 42
Highly satisfied 13
Indifferent 15
Dissatisfied 16
Highly dissatisfied 14
satisfied highly satisfied indifferent dissatisfied highly dissatisfied
42
1315 16
14
Inference: -
From the above table it is observed that,
42% of respondents satisfied with the style of bikes
13% says that they are highly satisfied.
Morethan 30% are dissatisfied with the style of different bikes.
6. PERFORMANCE LEVEL OF BIKE COMPARING WITH OTHER COMPANY
BIKES:
Page 39
SATISFACTION LEVEL No. of respondents
Satisfied 45
Highly satisfied 28
Indifferent 0
Dissatisfied 11
Highly dissatisfied 16
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
45
28
0
11
16
Inference: -
From the above table it is observed that, 73% of respondents are satisfied with the
performance of hero bikes compared to other and 27% are dissatisfied with the performance.
7. SATISFACTION LEVEL ON PICKUP /SPEED OF VEHICLE
SATISFACTION LEVEL No. of respondents
Page 40
Satisfied 32
Highly satisfied 24
Indifferent 13
Dissatisfied 16
Highly dissatisfied 15
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
32
24
13
16 15
Inference: -
The above table inferred that 56% are satisfied, 31% are dissatisfied and 16% indifferent
towards the pickup or speed of Hero bikes.
8. OPINION OF CUSTOMERS ON PRICES OF HERO MOTOCORP BIKES:
SATISFACTION LEVEL No. of respondents
Page 41
Satisfied 62
Highly satisfied 14
Indifferent 03
Dissatisfied 16
Highly dissatisfied 05
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
62
14
3
16
5
Inference:-
From the above table it is observed that,
76% of respondents are satisfied with the prices of bikes.
21% feel that prices are not at all satisfactory.
3% feel indifferent regarding prices.
9. SATISFACTION LEVELS ON WARRANTY OF VEHICLE
SATISFACTION LEVEL No. of respondents
Page 42
Satisfied 43
Highly satisfied 10
Indifferent 0
Dissatisfied 42
Highly dissatisfied 05
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
43
10
0
42
5
Inference:-
From the above table, we can say that
Only 53% are satisfied with the warranty and
47% are dissatisfied with the warranty that the company is providing.
10. OPININION ON PRICES OF SPARE PARTS:
SATISFACTION LEVEL No. of respondents
Page 43
Reasonable 57
Affordable 10
Costly 19
High cost 14
Reasonable Affordable Costly High cost
57
10
19
14
Inference:-
From the above table it is observed that,
57% of the respondents feel reasonable
10% feel affordable
19% feel they are costly and 14% feel high cost on spare parts of bikes.
11. SATISFACTION LEVEL OF CUSTOMERS ABOUT PRE PURCHASE SERVICE
SATISFACTION LEVEL No. of respondents
Page 44
Satisfied 31
Highly satisfied 27
Indifferent 07
Dissatisfied 22
Highly dissatisfied 13
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
31
27
7
22
13
Inference:-
From the above table it is observed that,
58% of customer says pre purchase service performance by Hero MotoCorp is
satisfactory.
Morethan 35% feel that they are not satisfied.
12. SATISFACTION LEVEL OF CUSTOMERS ABOUT AFTER SALE SERVICE:
SATISFACTION LEVEL No. of respondents
Good 43
Page 45
Excellent 06
Average 29
Poor 22
Good Exellent Average Poor
43
6
29
22
Inference:-
From the above table it is observed that,
43% feel good,
6% feel excellent,
29% feel average and
22% feel poor regarding after sale service.
13. CUSTOMERS RECOMMEND OTHERS TO BUY HERO MOTOCORP:
No. of respondents
Page 46
Yes 84
No 16
Yes No
84
16
Inference:-
From the above table it is observed that,
84% said that they recommend hero bikes to others and
16% said that they won’t refer.
14. OVER ALL SATISFACTION LEVEL
SATISFACTION LEVEL No. of respondents
Satisfied 50
Highly satisfied 40
Page 47
Indifferent 6
Dissatisfied 3
Highly dissatisfied 1
satisfied highly satisfied indifferent dissatisfied higghly dissatisfied
50
40
63
1
Inference:-
From the above table it is observed that,
90% said that they are satisfied with the overall performance of bikes
Only 4% people are dissatisfied and
6% are indifferent.
NULL HYPOTHESIS (HO)
There is no significant difference between MILEAGE and OVER ALL
SATISFACTION of bikes.
Page 48
Mileage Overall
satisfactionSatisfied 81 90 171
Dissatisfied 17 04 21Total 98 94 192
Observed(O) Expected(E) (O-E)2/E81 87.28 0.45117 10.71 3.69490 83.71 0.4724 10.28 3.836
Total 8.453
DEGREES OF FREEDOM:
(Row-1) (Column-1) = (2-1)(2-1) =1 degree
Page 49
At 5% level of significance, Table value of 1 degree @ 5% level of significance is
3.84.
INFERENCE
Calculated value is (8.453) greater than the table value (3.84) so (HO) rejected.
There is significant difference between MILEAGE and OVER ALL
SATISFACTION.
FINDINGS
• 84% of people said that they recommend hero motocorp to others.
Page 50
• It is observed that only 49% people feel good of after sale services.
• It is observed that only 56% are satisfied with the pickup of bikes.
• 47% are totally dissatisfied with the warranty of bikes.
• Good to see 90% of people are satisfied overall performance.
• It is observed that 76% of the customers said that the prices of Hero
Motocorp are fair.
• 30% of customers have odd opinions on the style or look of vehicles.
• 27% of customers said that they are dissatisfied with the performance
of the bike compared to others.
SUGGESTIONS
Company should focus on consumer preferences like
Page 51
Style of bikes should be improved further.
After sale service should highly be improved.
Their warranty levels for bikes to be improved.
Almost half of the respondents are disappointed with the
pickup/speed of the bike so it needs to be improved.
Services should be done in time.
Majority of customers are from middle class families, hence
that segment should be taken care.
CONCLUSION
For making a better relationship with
customer they always use genuine parts in their product. And after selling they
have low services and maintenances. Their constant endeavor is to support the
company's mandate of providing highest level of customer satisfaction by taking
good care of customer’s two-wheeler service and maintenance through their vast
Page 52
network of more than 2100 committed dealers and service outlets spread across
the country.
Apart from that Hero MotoCorp Ltd focused
on cleanliness and other aesthetics of the service stations and add such air
conditioned waiting area, internet surfing, coffee shops etc to enhance the in
house experience of the customers at those “customer touch point”. To ensure
that millions of customers in the rural area are not left waiting for adequate
service as it is impossible for the company to introduce service station at every
nook and corner of the country, mobile service stations are regularly arranged
with prior intimation to public about the rout that the mobile workshop would
take when passing through that region so that customers can come and get their
two wheelers serviced. All these activities are aimed to increase the customer
loyalty and thus retaining customers.
QUESTIONAIRE
PERSONAL INFORMATION:
NAME: ……………………………………………………………
GENDER:
MALE ( ) FEMALE ( )
Page 53
AGE:
18-25 ( ) BETWEEN 25 TO 30 ( ) ABOVE 30( )
OCCUPATION:
BUSINESS ( ) EMPLOYEE ( ) STUDENT ( ) OTHERS ( )
TELEPHONE NO: _______________________
QUESTIONNAIRE :
1. What is the name of bike you use in HERO?
_____________________________________________
2. Level of satisfaction regarding mileage of your bike? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
3. Level of satisfaction style of your bike? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
4. Performance level of your bike comparing with other company’s? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied
5. How much you are satisfied with the quality of the product? [ ]
a) Highly satisfied b) satisfied
Page 54
c) Dissatisfied d) highly dissatisfied
6. Level of satisfaction speed/pickup of your bike? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
7. Level of satisfaction on prices of your hero bikes? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
8. Level of satisfaction on warranty of bikes? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
9. Opinion on prices of spare parts of hero bikes [ ]
A) Reasonable b) Affordable
c) Costly d) High cost
10. Level of satisfaction on pre purchase service of HERO? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
11. Level of satisfaction post sale service of HERO? [ ]
A) Satisfied b) Highly satisfied
c) Indifferent d) Dissatisfied e) Highly dissatisfied.
12. What is your opinion on Advertising [ ]
a) Good b) very good
Page 55
c) Average d) bad e) very bad
13. Would you like to recommend hero bike to others [ ]
a) Yes b) No
14. Overall satisfaction regarding HERO bikes [ ]
A) Satisfied b) Highly satisfied
c) Dissatisfied d) highly dissatisfied
15. Any suggestions regarding bikes further improvements
…………………………………………………………………………….
BIBLIOGRAPHY
Page 56
TEXT BOOKS
Philip Kotler (1999), 13th Edition “MARKETING MANAGEMENT” prentice
all India Ltd., New Delhi.
2. Donald R. Cooper, Pamela S. Schindler (2006) 9th Edition, “Business
Research Methods” Tata McGraw Hill Education Private Limited, New Delhi
S.P.Gupta (1999) 2nd Edition, “STATISTICAL METHODS” Sultan Chand &
Company Limited – New Delhi.
WEBSITES
www.google.com
www.hero motocorp.com
www.wikipedia.com
www.motorbeam.com
Page 57