Project Report on Impact of Promotional Tools in Selling Hero Honda Bikes

INTRODUCTION

Automobile is one of the largest industries in global market. Being the leader in

product and process technologies in the manufacturing sector, it has been

recognized as one of the drivers of economic growth. During the last decade, well

directed efforts have been made to provide a new look to the automobile

policy for realizing the sector's full potential for the economy. Aggressive

marketing by the auto finance companies have also played a significant role in

boosting automobile demand, especially from the population in the middle

income group.

A Nations economy is well known from its transport system. For instant and rapid

growth in economy, a well-developed and well-networked transportation system

is essential. As India's transport network is developing at a fast pace, Indian

Automobile Industry is growing too. Also, the Automobile industry has strong

backward and forward linkages and hence provides employment to a large section

of the population. Thus the role of Automobile Industry is very essential in Indian

economy. Various types of vehicles are manufactured by the Automobile

Industry. Indian Automobile Industry includes the manufacturing of trucks, buses,

passenger cars, defense vehicles, two-wheelers.

The two-wheeler manufacturing is dominated by companies like Hero Honda

TVS, Honda Motorcycle & Scooter India (Pvt.) Ltd., Yamaha, Bajaj, etc.

The automobile industry in the country is one of the key sectors of the economy

in terms of the employment opportunities that it offers. The industry directly

employs close to around 0.2 million people and indirectly employs around 10

million people. The prospects of the industry also has a bearing on the auto-

component industry which is also a major sector in the Indian economy directly

employing 0.25 million people.

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All is not well with the automobile industry the world over currently with the

slowdown that has gripped most of the major economies of the world. The gap

between the manufacturing capacity volume and the assembly volume is growing

by the day and has worried the manufacturers. This state of affairs has triggered a

lot of cut-throat competition and consolidation in the industry. Cost reduction

initiatives have come to be the in thing in the global industry today. Towards this

direction, many automobile factories are being closed down. The Indian

automobile industry is a stark contrast to the global industry due to many of the

characteristics, which are peculiar to India. The Indian automobile industry is

very small in comparison to the global industry. Except for two wheelers and

tractors segments, the Indian industry cannot boast of big volumes vis-à-vis global

numbers.

OVERVIEW OF TWO WHEELER SECTOR

Two Wheeler Industry

The Indian two wheeler contributes the largest volumes amongst all the segments

in automobile industry. Though the segment can be broadly categorized into 3

sub-segments viz.; scooters, motorcycles and mopeds; some categories introduced

in the market are a combination of two or more segments e.g. scooterettes and

step-thru’s. In the last four to five years, the two-wheeler market has witnessed a

marked shift towards motorcycles at the expense of scooters. In the rural areas,

consumers have come to prefer sturdier bikes to withstand the bad road

conditions. In the process the share of motorcycle segment has grown from 48%

to 58%, the share of scooters declined drastically from 33% to 25%, while that of

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mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro

emission norms effective from April 2000 led to the existing players in the two-

stroke segment to install catalytic converters. All the new models are now being

replaced by 4-stroke motorcycles. Excise duty on motorcycles has been reduced

from 32% to 24%, resulting in price reduction, which has aided in propelling the

demand for motorcycles.

Within the two-wheeler industry, motorcycle segment grew at a phenomenally

high rate of 35% as against a deceleration of 3% for scooters and 27% for

mopeds.

In fact, motorcycle has been taking away the share of scooters and mopeds in a

4.3 million two-wheeler market and surging ahead with its market share of 68%.

The increasing demand from semi-urban and rural segments may have caused this

positive shift towards motorcycles. Also, easy credit coupled with low interest

rate regime, constrained personal transport, increasing income levels in middle

class and higher aspirations of young people all seem to be the factors responsible

for such high growth in two-wheelers. The growth in two-wheelers has been

robust enough to counter the slow down and other factors constraining the overall

business activity in the country. Also, rationalization of excise duty in the Union

Budget 2002-03 had a positive impact on the demand for motorcycles. We also

expect the motorcycles to continue to lead the two-wheeler segment like in all

other Asian countries. Available forecasts suggest that this trend would continue

for another couple of years and the industry would record nearly double-digit

average annual growth up to 2006.

During the year, there have been important developments in two-wheeler

industry. The competition has strengthened though there are hardly any new

entrants into the industry. There is an increasing emphasis on price and this has

led to cost cutting efforts all across the industry, thereby, making the customer an

ultimate beneficiary. The trend also saw introduction of new motorcycles with

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capacity ranging from 100 to 180cc bikes. We anticipate that many more new

models will be launched during the year and provide customers plenty of choice

at competitive prices. Businesses cannot consistently grow at 25-30 per cent. Each

business has a tendency to taper and plateau after attaining a particular size. An

annual growth rate of 10-12 percent over a period of time is extremely healthy.

The TCS study rankings are conducted at the motorcycle segment-level to provide

comparisons among similar groups of motorcycles. Motorcycles ranking highest

in the irrespective segments for TCS are: Hero Honda CD100 SS (best standard

motorcycle segment); Hero Honda Splendor (best executive motorcycle segment);

"The relatively low score for the premium segment indicates that most

manufacturers have fallen short of meeting the high expectations of these buyers,

states Mr. Lochan. Indians prefer the two wheelers because of their small

manageable size, low maintenance, and pricing and easy loan repayments. Indian

streets are full of people of all age groups riding a two wheeler. Motorized two

wheelers are seen as a symbol of status by the populace. Two wheelers in India

are the second largest producer and manufacturer of two-wheelers in the world. It

stands next only to Japan and China in terms of the number of two-wheelers

produced and domestic sales respectively. 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. The two-wheeler market was opened to foreign

competition in the mid-80s. With the availability of fuel efficient low power

bikes, demand swelled, resulting in Hero Honda -then the only producer of four

stroke bikes (100cc category), gaining a top slot.

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The first Japanese motorcycles were introduced in the early eighties. TVS

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 90s 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 50s, 60s and 70s when the Government

prohibited new entries and strictly controlled capacity expansion. The industry

saw a sudden growth in the 80s. The industry witnessed a steady growth of 14%

leading to a peak volume of 1.9mn vehicles in 1990.

EVOLUTION OF TWO-WHEELER INDUSTRY IN INDIA:

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

automobile sector that has undergone significant changes due to shift in policy

environment. The two-wheeler industry has been in existence in the country since

1955.It consists of three segments viz. scooters, motorcycles and mopeds. In India

there are some MNC’s and Indian company dealing in automobile sector. The

main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha,

Honda, and TVS. Hero Honda is the biggest player in this sector in India as well

as in the world and playing a very important role in two wheeler automobile

sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha &

Honda are international automobile brand.

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INTRODUCTION OF HERO HONDA MOTORS LTD

Today if one talks about Indian two-wheeler industry, reference to Hero Honda

Motors Limited is by default. It is not only the market leader in the two wheeler

segment in India but also is the number one two wheeler company in the world by

volumes. The company’s name is synonymous with fuel-efficient bikes and

longevity. The company has a presence in all bike segments viz. economy (CD

100SS, CD Dawn) executive (Super Splendor, Splendor+) and premium

(Karizma, CBZ). Splendor is the most successful product of the company and

accounts for almost 50% of the company’s turnover.

Hero Honda is a two-decade-old story. It came into existence as a joint venture

agreement between the Munjal family’s Hero Group and Honda Motor Company

(HMC) of Japan, each having 26% stake in the company. A ten year agreement

was first entered in the year 1984, whereby HMC brought in technical expertise

and Hero Honda brought in local talent to manage all other functions including

marketing, finance, and human resources. The agreement was once again renewed

in 2004 and has been extended till 2014.

The Indian two wheeler industry has seen a paradigm shift from being a regime of

regulation and tight control in the 1980s to a more liberalized and a competitive

present day era. After missing out on the initial boom in two wheeler segment

during the period of 1993-1996, Hero Honda has emerged as a world leader. The

gap between motorcycles sold by Hero Honda and its closest rival is

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approximately 1 m units (23% of industry size). One of the reasons for the

tremendous performance of Hero Honda is the significant increase of share of

motorcycles in the two-wheeler segment, from 42% in FY99 to 77% in FY04. No

doubt, that the shift in preference of Indian populace from scooters and mopeds

towards motorcycles has facilitated the growth of Hero Honda. However its

performance vis-à-vis industry indicates that the performance of Hero Honda was

better than the industry peers, barring two years. In the seven-year period ending

FY04, it has achieved a CAGR of 30% in two-wheeler volumes against 11% of

the industry.

MARKET SEGMENTATION:

Demographic Segmentation

• Income: Our customer survey indicates that the segments available for the

Hero Honda bike are the people with monthly income of Rs. 10,000 and

above.

• Age: The main segmented group for the motorcycle are 18 years and above.

Occupation: All kinds of people are taken into account. Students, professionals,

Govt.Servants, etc.

Geographic Segmentation:

The potential customers are basically from every regions of India.

Psychographic segmentation:

People purchasing bikes are very stylish, brand conscious.

Behavioral segmentation:

This segmentation is done considering user status, benefit wise.

TARGETING

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The proposed targeting people in the age group of 18 years and above with a monthly

income of Rs. 10,000 and above, who are adventurous, enthusiastic and socializing and who

are either students or retired individuals or may be employed as professionals, government

servants or having their own business, but mostly male. Even today females are also targeted

by introducing Hero Honda pleasure.

MARKETING MIX OF HERO HONDA:

PRODUCT :

The tangible offer to the market, which includes the product quality, design,

features, branding and packaging. The product is perfectly designed and all the

switch are well placed, which provides a good riding condition.

PRICING:

Pricing is an important component of marketing mix of the firm. Determining the

prices of Different products of a firm is very difficult task of the marketing

manager. Price denotes money value of a product. It represents the amount of

money for which a product can be exchanged. In other words, prices represents

the money which the buyer pays to the seller for a product price represent the

exchange value of goods and services in terms of money. Price is all around.

Price factor has very well been touched by the manufacturers. The manufacturers’

are charging very comparatively cheaper price i.e. Rs 45000 approx. The pricing

strategy of the company is very set. They price their product according to the cost

of production and also by keeping an eye on the price of the competitors of that

segment and demand of the product in the market.

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A pricing strategy that ensured an average manufacturer margin that game dealer

an adequate return and created a reputation with consumers like “a company

selling a good quality product at a reasonable price. Industry focuses themselves

the low cost producer with good quality and aimed to maintain the price

advantage in every market of two wheelers.

Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. I fixes customer centric pricing that provide

customer total satisfaction. Hero Honda’s pricing objectives are:

List price

Discount

Financing schemes

Credit terms and

Maximize profits

Hero Honda group ensures an easily affordable pricing through excellent

transportation to common man. It fixes customer centric pricing that provides the

customer with total satisfaction.

PLACE:

HERO HONDA has direct contact with the dealers. There are no middlemen

involved. The dealers directly sell to the customers. The channel is of 1st level

which has only the dealers as the link between the customers and the company.

What Does Customer Want?

The customers of Hero Honda are very particular about the colors that Hero

Honda offers in its wide variety of bikes. The customers are very much aware of

their purchase. Gone are the days when the sales people could influence the buyer

to buy a particular product. Almost 90-93% of the customer, whoever comes to

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the showroom? Usually comes after he/she had made a decision. So, the work of

the sales person is less. The rest 7-10% have some doubts with regard to the

purchase of Hero Honda. It is here, where the sales persons have to do some work

in convincing the customers about the bike. The sales person in this regard

conveys the customers about the mileage, strokes and also the parameters that the

customers enquire.

How Is The Price Determined According To The Change?

Manufacturer, on the basis of the cost of production determines the price and the

factors like tax and others. Usually the sales tax on the two wheelers is 8% but in

Hero Honda it is 4%. This is because Delhi Government has found out that the

pollution from Hero Honda is very less due to the catalytic converter which every

model of Hero Honda have. The government has identified that by using the

catalytic converter Hero Honda is helping the environment which is a social

cause. Hero Honda Bikes not only have market in India, but also in abroad. To

maintain the differences in market of the different companies it takes the help of

the local manufacturers or the dealers outside for the distribution of their bikes

smoothly.

SALES PROMOTION:

Sales promotion is any initiative undertaken by an organization to promote an

increase in sales, usage or trial of a product or service (i.e. initiatives that are not

covered by the other elements of the marketing communications or promotions

mix). Sales promotions are varied. Often they are original and creative, and hence

a comprehensive list of all available techniques is virtually impossible (since

original sales promotions are launched daily!). Here are some examples of

popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating

promotion. For example if a loaf of bread is priced at $1, and cost 10 cents to

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manufacture, if you sell two for $1, you are still in profit - especially if there is a

corresponding increase in sales. This is known as a PREMIUM sales promotion

tactic.

(b) Customer Relationship Management (CRM) incentives such as bonus points

or money off coupons. There are many examples of CRM, from banks to

supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For

example, in the United Kingdom, Nestle printed individual codes on KIT-KAT

packaging, whereby a consumer would enter the code into a dynamic website to

see if they had won a prize. Consumers could also text codes via their mobile

phones to the same effect.

(d)Merchandising additions such as dump bins, point-of-sale materials and

product demonstrations.

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each

sandwich purchase. Once the card was full the consumer was given a free

sandwich.

(f) Discounted prices e.g. Budget airline such as Easy Jet and Ryan air, e-mail

their customers with the latest low-price deals once new flights are released, or

additional destinations are announced.

(g) Joint promotions between brands owned by a company, or with another

company's brands. For example fast food restaurants often run sales promotions

where toys, relating to a specific movie release, are given away with promoted

meals.

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(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points

in supermarkets. For example Red Bull (a caffeinated fizzy drink) was given

away to potential consumers at supermarkets, in high streets and at petrol stations

(by a promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio,

on The Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the

less well off farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that

promotions can be aimed at wholesales and distributors as well. These are known

as Trade Sales Promotions. Examples here might include joint promotions

between a manufacturer and a distributor, sales promotion leaflets and other

materials (such as T-shirts), and incentives for distributor salespeople and their

retail clients.

Advertisement, local events sponsorship and promotions and inviting a prominent

personality for the inaugural or first like delivery function would contribute

effectively in generating a wider local interest and attention.

Hero Honda’s latest DKD –2 commercial its two brand starring its Ambassador

and India’s heart throbs, Hritik Roshan and Sourav Ganguly, truly reflects the

multi fact roles that today’s new generation plays. The commercial reflecting the

charisma and vibrancy of these two stars, takes Desh Ki Dhadkan to dazzling new

heights. It is young, colorful and vibrant and represents the icons of contemporary

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times. And it will go a long way in strengthening the leadership status of the

product by the mile.

The new commercial is powerful film repeat with an impressive storyline. The

effort to pack the story, drama and impact in just 60 seconds was phenomenal

challenge itself. The idea was born itself. The idea was born out of the very

essence of “Hero and Stars”. Keeping in mind would cause on the drama and

impact it would cause on the audience. It is a commercial packed with action

where today’s heart throbs, Hritik and sourav, are seen tackling new roles. The

story being in a field adjoining a hill with two cool men, Hritik and Sourav on

Hero Honda bikes and Passion respectively.

Promotion concerns the message that firm sends out to potential

consumers. It provides information and persuades people, it creates awareness,

stimulates demand and differentiates the product and influences public behavior.

Promotion won’t make a bad product that no one wants a success; although the

absence of promotion might at a good product is not successful, promotion

includes all the activities or tools a company uses to communicate or promote its

product in the market.

PROMOTION TOOLS :

Companies must allocate the marketing communications budget over the eight

major modes of communication.

Advertising

Sales promotion

Public relations and publicity

Events and experiences

Direct marketing

Word of mouth marketing

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Companies are always searching for ways to gain efficiency by replacing one

communication tool with others. Many companies replace some field sales

activity with ads, telemarketing etc. substitutability among communication tools

explains why marketing functions need to be coordinated.

ADVERTISING :

It reaches geographically dispersed buyers. It can build up a long term image or a

product or trigger quick sales. Certain forms of advertising such as TV can require

large budget whereas other forms such as newspapers do not. Just the presence of

advertising might have an effect on sales.

SALES PROMOTION:

Companies use promotion tools such as

Coupons

Contests

Premiums to draw a strong and quicker buyer response , including short-

run effects such as highlighting product offers and boosting sagging sales.

Sales promotion is a key ingredient in marketing campaign, consists of a

collection of incentive tools, mostly short term, designed to stimulate quicker

or greater purchase of particular products or services by consumers or the

trade.

When advertising offers a reason to buy, Sales promotion offers an incentive

to buy. Sales promotions include tools for consumer promotions like

Coupons

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Cash refund offers

Price offs

Premiums

Prizes

Patronage rewards

Free trials

Warranties

1. PERSONAL SELLING: It involves personal confrontation either by phone or

face, it

is an expensive and time-consuming tool of promoting the product.

2. ADVERTISING: It is defined as a paid non-personal communication with a

target

(Usually mass) market. It is cost effective and can reach a large number of people.

It can also be used for long term or short term objectives.

There are various forms or mediums through which can advertise.

A. Broadcast Media:

• Television

• Radio

• Cinema

B. Print media:

• Newspapers

• Magazines

• Leaflets

C. Outdoor media:

• Posters and billboards.

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1. PUBLIC RELATIONS AND PUBLICITY:

Public relations are an umbrella term and refer to the totality of the

organization’s behavior with respect to the society in which it operates. They may

be regarded as good or bad and is reflected in the company’s reputation and

image.2. SPONSORSHIP:

Sponsorship can be seen as a part of public relations and it is certainly the case

that some sponsorship goes on to generate positive publicity for the organization.

3. DIRECT MARKETING:

It is an interactive system of marketing which uses one or more advertising media

to affect a measurable response at any locations.

4. DIRECT MARKETING INCLUDES:

• Direct mail.

• Telemarketing.

• Door to door selling.

• Direct response advertising: ‘phone now’ or ‘fill in the coupon ads’

• Home shopping of various types.

Factors that guide a marketer’s decision in selecting a promotion mix:

a) Nature of product

b) Overall marketing strategy

c) Buyer readiness stage

d) Product life cycle stage

1. SPONSORSHIPS:

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The company has not left any stone untamed in sponsoring the major events

both globally and domestically. The biggest of all is the sponsorship of the

“WORLD CUP” for which Hero Honda has the credit of being the only two-

wheeler company in the world to do so. Besides this, the company has also

sponsored events like “Master Golf”, television academy awards, etc,

Thus the company has gained a lot of reputation by doing so.

2. DISCOUNTS/OFFERS:

The company has started giving discounts and other offers to the customers on

the purchase of anew bike, for instance, with the World Cup offer, in which the

consumer was to get a 1 gm gold coin with every purchase.

But after all these schemes and benefits may be because of cut-throat

competition in the segment with heavyweight competition such as Bajaj, kinetic,

Yamaha, and TVS the company (HERO HONDA) officially says:

“Our aim is to proactively and consistently deliver value to the customer. We

are giving back to the customer after becoming successful. Most companies give

discounts only when their products are not doing well in the market. There is lost

of competition in the segment, especially from Bajaj. But the reason for Hero

Honda’s success it that we are consumer-focused while other companies such as

Bajaj tends to be more competitor-focused.

PROMOTION POLICY:

➢ Company gives advertisement in different media vehicles time to time. Like

in TV. Magazines, newspaper, etc.

➢ Hero Honda also organizes free service camps every year.

➢ Hero Honda also takes part in trade fair.

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➢ Hero Honda with the help of ICICI Bank provides loan to the customers &

also provide easy monthly installment scheme to customers.

➢ Hero Honda gives huge commission to their dealers.

The various promotional activities adopted by the Hero Honda Company.

The company has 100crore rupees for its promotional activities out of which

75% is sponsored by the company and 25% from the dealers.

They may sign a celebrity for its promotional activities in recent futures.

• The company provides six free services to its customers in comparison to

its competitors.

• The company provides good services facilities to its customers through dealer’s

service station.

• Dealers encourage its customers by giving discount, providing 0%

interest loan schemes, prices, coupons etc.

The various promotional activities adopted by Hero Honda bikes are as

follows Credit & finance schemes

Free services to the consumers

Advertisements on Televisions, Newspapers, Magazines

Road Shows

Free trials for the new consumers

OBJECTIVES OF SALES PROMOTION:

Sales promotion tools vary in their specific objectives. Sellers use incentive- type

promotions to attract new triers to reward loyal customers. Sales promotion seems

most effective combined with advertising. In one study, a price promotion alone

produced only a 15% increase of sales. When combined with feature advertising,

sales volume increased 19%. When combined with feature advertising and pop

display, sales volume increased 24%. Many large companies have a sales

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promotion manager whose job is to help brand managers choose the right

promotional tools. Around one million consumers visit www.cool savings. Com

for offers from name brands as well as helpful tips and articles, newsletters, free

trials and more.

HERO HONDA VISION, MISSION , STRATEGY:

Talking about the company's future plans, “Hero Honda is committed to continue

its world class performance, by delivering even better value to the customers in

the years ahead by offering products with the latest technology, styling and

performance. Several new and exciting product launches are lined up for the

future.”

HERO HONDA STRENGTHENS ITS PATRONAGE WITH CRICKET

Showcases the ICC Champions Trophy for members of the Hero Honda family in

Jallandher.

Hero Honda, the 'World No.1' two-wheeler company and the Global Partner for

all ICC cricket tournaments till 2007, has taken forward its association with

cricket with the sponsorship of the ICC Champions Trophy. Many cricket

enthusiasts came to have a glimpse of the trophy, which was looking sparkling

and terrific in its form.

MISSION:

Hero Honda’s mission is to strive for synergy between technology, systems and

human resources, to produce products and services that meet the quality,

performance and price aspirations of its customers. At the same time maintain the

highest standards of ethics and social responsibilities.

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http://www.cool/

VISION:

The Hero Honda story began with a simple vision – the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero

Honda’s commitment to customer, quality and excellence, and while doing so,

maintaining the highest standards of ethics and societal responsibilities. Hero

Honda believes that the fastest way to turn that dream into a reality is by

remaining focused on that vision.

STRATEGY:

Hero Honda’s key strategy has been driven by innovation in every sphere of

activity – building a robust product portfolio across categories, exploring new

markets, aggressively expanding the network and continuing to invest in brand

building activities.

MARKETING STRATEGIES OF TWO WHEELER DEALERS:

It’s the best time of the year to find great deals. Taking advantage of the festive

season, manufacturers and retailers everywhere are rolling out the red carpet for

customers. The two-wheeler market is no exception. With competition heating up,

bike and scooter manufacturers and finance companies are doing all they can to

attract customers. If you already had a mean machine on your shopping list, here

are some good reasons to go get it now. The festival season spells better offers in

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terms of discounts, freebies and attractive loan schemes. More importantly, with a

possibility of an interest rate hike, it is better to take advantage of prevailing rates.

OFFERS FROM DEALARS AND BANKERS:

• Market leader Hero Honda, which sells over two Lakh bikes every month, is

wooing customers by offering a free Reliance phone connection worth

approximately Rs 3,500 with any bike model. An HDFC account holder also

gets free insurance regardless of the model.

• In some cities, HDFC is also offering free registration or a dinner set to Hero

Honda customers. Registration costs are roughly Rs 2,900 — the amount you

save as a customer.

• ICICI is offering free registration and insurance in all metros; mobile handsets,

mobile accessories, mobile connection or a camera in cities in Bangalore and

Chandigarh; free travel bags or dinner sets in Madhya Pradesh.

• Tamil Nadu residents can also opt for a free domestic holiday. ICICI’s

promotion for Hero Honda customers also includes a lower interest rate. At 13 per

cent for Hero Honda customers, equated monthly installments on a Rs 40,000

loan for 36months have fallen from Rs 1,445 to Rs 1,348. The nationwide

promotion also involves a scratch card contest and 25 lucky winners will be able

to grab gold.

INTEREST RATES AND DISCOUNTS:

There are also better interest rates and discounts. For example, Honda, a relatively

new entrant in the motorcycle market, has tied up with ICICI to offer an 8.4 per

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cent interest rate and up to 96 per cent of the value of its Unicorn model. This is

13-16 per cent interest rate that ICICI offers on two-wheeler loans. HDFC’s tie-up

with Honda Unicorn customers includes 100 per cent finance on the bike at a 16-

18 percent rate. The difference between ICICI’s and HDFC’s rate is that ICICI’s

rate is flat rate, meaning that 8.4 per cent will be charged on the loan amount for

the entire tenure rather than a simple interest reducing balance calculation.

However, you should also consider public sector banks for two-wheeler loans. A

low cost of funds means that public sector bank rates range between 10.5-12 per

cent, compared to the 13-18 percent range offered by private sector banks. Also,

processing fees are a percentage point lower. However, there are no changes in

the 12 percent interest rate on two-wheeler loans. Like other players, BOB offers

loans up to Rs 1 lakh for any two-wheeler for duration of up to 60 months.

However, BOB does not levy any prepayment penalty and the outstanding interest

is computed on a monthly rest.

• HDFC is also leveraging its existing customer base. For existing customers, the

bank is waiving the last two equated monthly installments and the 2 per cent

processing fee, regardless of the model.

• SBI has introduced a concessional rate of 10.5 per cent on two-wheeler loans

as compared to the usual 11 per cent.

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COMPANY PROFILE OF SRI SRI SRI AUTOMOBILES

Location

State: Andhra Pradesh

District: Warangal

City: Warangal

Pin code: 506002

Contact Information

Email: [email protected]

Phone: 256173, 256212

Address: H NO 15-2-28,MULUGU ROAD

Warangal

Andhra Pradesh - 506002

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http://www.indiastudychannel.com/india/pincodes/Index.aspx?Pincode=506002

http://www.indiastudychannel.com/india/districts/440-Warangal.aspx

http://www.indiastudychannel.com/india/states/4-Andhra-Pradesh.aspx

This is the first Hero Honda showroom in Warangal and the oldest one in the

entire district. It has two showrooms in Warangal one in Station Road and other is

at Mulug Cross. They have excellent servicing facilities and all the mechanics are

trained by the company and also the servicing center is well equipped with the

latest machinery and tools. They do the service and deliver on time.

They have moved to their own space and the show room is well maintained and

they have a separate space for displaying the new models of vehicles.

They have tied up with some banks to provide on the spot vehicle loans.

ABOUT THE STUDY

OBJECTIVES OF THIS STUDY

This study is done in keeping following objectives in view.

1. The main objective is to know the consumers expectations regarding the

promotional activities, and the impact.

2. To gain valuable insight into the two wheeler sector.

3. To have an overview of HERO HONDA BIKES.

4. To know the reputation of HERO HONDA BIKES in the market.

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5. How the consumer preference towards the brand HERO HONDA BIKES.

6. The main objective is how to increase the reputation of Hero Honda bikes

brand in the market.

7. To understand its competitors in the business.

8. Create a good image in the market.

9. The survey is also aimed at reviewing the competitiveness of various Hero

Honda bikes.

RESEARCH METHODOLOGY AND RESEARCH DESIGN:

The aim is to bring a clear picture of the procedure followed

in the study.

Sample Size :

Total sample size was 100. Response taken by questionnaire.

Sample frame:

Since the research was localized, the sample frame consisted of local consumers

from Warangal.

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Primary Data: - The Primary Data is to be collected through

1. Questionnaire

Secondary Data :- The secondary data is to be collected from

Dealers internal reports documents

Journals and magazines

Websites

Research Design: - The primary data and secondary data will be studied analyzed

appropriately and interpreted to extract certain facts. Whenever necessary

statistical tools and financial tools like tabulation, graphs will be used to present

the findings effectively.

EXPECTATIONS OF THE COMPANY FROM THIS SURVEY:

This survey will help the two wheeler sector to evaluate their product and

the services they deliver .this will act as a tool for the company to know their

opportunities and threats in the market. Expectations of the company from this

survey are:

1) How to maximize the sales.

2) To improve the promotional activities.

3) Customize the product as per the customer’s needs.

26

LIMITATIONS OF THE STUDY:

• The study limited to the extent of available data.

• An in depth study might not be done because of time

constraints.

• The study is restricted to Two-wheeler dealers in

Warangal city only.

KEY MILESTONES OF HERO HONDA Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

27

1989 New 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 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

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2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

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New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced


15 million production milestone achieved


New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched


2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched


CD Deluxe lauched with power start feature

New 'Glamour' launched

New 'Glamour Fi' launched

30

2009 Hero Honda GoodLife Program launched

Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark

New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations.

PRODUCT POSITIONING:

The product of Hero Honda is classified into following 3 segments:

ECONOMY SEGMENT:

The characteristics of products from this segment focus on basic

transportation from one point to another. The emphasis is on fuel efficiency and

31

comfort. The promotion strategies used in this segment can be discussed through

the following products :

CD DAWN

“Public ka naya transport”& “value naye zamane ki”

Through this campaign the company tries to position this product as a basic

means of transport at an affordable price. Value for money and fuel efficiency are

the core focus areas of the product.

CD Deluxe “Jiyo deluxe……..chalo deluxe”

The main focus of promotion campaigns for CD Deluxe is on style and a true

Value for 100cc motorcycle.

CD 100SS

“Tough and rugged”

This product represents toughness. The ability to handle even off-road, dirt

conditions with ease is its main USP. It is basically meant for the rural market.

EXECUTIVE SEGMENT:

The promotion strategies used in this segment can be discussed through the

following products:

SPLENDOR

“Designed to excel”

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The ad shows a blind man identifying the product and assuring its quality. This

shows the blind faith that people have in this bike. It also promotes the Splendor

as the world’s best selling motorcycle which got better with the Splendor Plus

model.

PASSION

“When style matters more”

Though this product shares the same engine as that of Splendor it differs on the

styling front. It is targeted at young urban male who want a stylish and attractive

looking vehicle without compromising in fuel efficiency. In the starting it came

up with an add campaign of “born in a studio not in a factory” but later it has

modified it to “when style matters more”

SUPER SPLENDOR

“Sarva guna sampanna”

Super Splendor is another product which company launched very recently. It

promotes itself by saying “Sarva guna sampanna” means something that is good

at everything. The design is a derivative version of splendor and it uses an 125 cc

engine. Company claims it to be better than splendor in all respect including

power and fuel efficiency. Hero Honda believed some of those 100cc bike owners

would eventually shift to higher segments in the long run. So it wants to retain all

these Splendor buyers with in Hero Honda by providing a higher version of

Splendor.

GLAMOUR

“Leave the G life”

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The Glamour is a brand new bike from the Hero Honda stable. Though it is yet to

be launched, all the pre-launch promotions and specifications suggest that it is an

attempt to gain some of the lost market share in the 125 cc upper-end executive

segment. Super Splendor and Glamour will operate in the same mechanism in the

125 cc segment as that of Splendor and Passion in 100 cc segment.

CBZ

“Motorcycling unplugged”

CBZ was the first sports bike launched by Hero Honda in India. It was targeted at

those customers who have a passion for style and speed. This is one of the most

stable bikes at high speeds.

KARIZMA

“Jet set go”

Karizma was targeted at a niche segment. It was a premium segment bike for

those people who can afford to pay a few extra rupees for the unmatched style and

speed. Karizma was positioned as a total pleasure bike. Hrithik Roshan is the

brand for this premium segment two wheeler product from Hero Honda.

SALES PROMOTION STRATEGIES AT DEALER LEVEL:

The company follows various strategies for sales promotion. Some of the methods

involved at the Dealer level are:

I. Test Drives for prospective customers.

II.Sponsorship Schemes for customers in association with HDFC and ICICI

banks.

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III. Advertisement in showrooms on a company-dealer 50-50 basis partnership.

IV.Mobile Vans in remote areas for customer services i.e. after sales service.

V.Periodic rural fairs and to showcase the company models for prospective

buyers.

VI.Musical Nights conducted at important cities with a view to promote products.

ADVERTISING STRATEGIES:

The company mainly uses Billboards and signboards at major business

districts and major routes. Newspaper and TV advertisements to improve

consumer recall are also very prevalent. At the dealership level, the customers are

sent promotional material in the form of leaflets to initiate further contact and

increase customer awareness.

SALES REPORT OF HERO HONDA

The country's largest two-wheeler maker Hero Honda reported its highest ever

sales for a month in March at 5,15,852 units, registering a jump of 24.41 per cent.

35

The company had sold 4,14,638 units during the same month of last year, Hero

Honda Motors Ltd (HHML) said in a statement. For the entire 2010-11 fiscal,

HHML crossed 50-lakh sales mark by dispatching a cumulative sales of

54,02,444 units as against 46,00,130 units in the previous fiscal, up Hero Honda

the world’s no. 1 two wheeler company has posted growth of 24.41% in the

month of March 2011 compared to March 2010. The company has

sold 5,15,852 units of two wheeler in the month of March 2011 compared

to 4,14,638 units of two wheeler sold in the month of March 2010. This is by far

company’s highest ever sales in current financial year. The previous highest ever

sales of 5,05,553 units in October 2010.

This is the eleventh consecutive month where Hero Honda has sold more than 4

lakh units and the third time more than 5 lakh plus sale in the current financial

year. On the month on month basis the sale is up by 9.28%. The company

sold 4,72,055 units in the month of February 2011. Hero Honda has

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sold54,02,444 units during April 2010 to March 2011 period up 17.44%

compared to 46,00,130 units sold in the same period last year.

Hero Honda Motors Managing Director and CEO Pawan Munjal said “We are

delighted with this year’s sales performance, far surpassing our initial guidance of

5 million. Our growth rate is reflective of our strategic and marketing prowess,

which has ensured the sustained market leadership.”

He also said “Hero Honda initiated strategic and structural changes this fiscal,

which will begin to take effect in the near future. We are confident that our

initiatives will allow us to build on our leadership position. We will actively look

at exploring opportunities in newer markets, establishing a new brand identity and

further enhancing our in-house resources”

The company is in final stage for the announcement of 4 th plant. Currently

company’s three operational plants have 5.6 million units capacity. The company

is running at its optimum capacity to satisfied demand. As expected the

company’s has started selling 5 lakh plus units from this month. In this financial

year the company bought Honda Motor Corporation’s 26% for Rs. 3,841.83 crore.

During this fiscal, the company has launched seven new models including

variants and refreshes, across various segments.

Summary

The Indian two wheeler industry’s growth rate remains intact. The period April

2010 to March 2011 has witnessed growth of 26.76% over the same period last

year. More than 13.25 million units of two wheelers sold during the period of

April 2010 to March 2011 compared to 10.45 million units in the same period last

year.

37

Hero Honda the market leader is continuously posting double digit growth after

Diwali. It has done 5.4 million units sales in the current financial year. Bajaj Auto

the second largest manufacturer of two wheelers has sold close to 3.4 million

units in the current financial year.

TVS Motors has sold more than 2.01 million units whereas HMSI sales stood at

1.66 million units during April 2010 to March 2011 period. Yamaha India, Suzuki

Motorcycle and Mahindra two wheelers sold 0.37 million, 0.28 million and 0.16

million units respectively during the period of April 2010 to March 2010. Going

ahead we will continuously have double digit growth in two wheeler industry

despite fuel price hike and rising price of two wheelers as there are several new

product launches in pipeline for next 6 month. But the growth rate will come

down in next financial year and upcoming months.

Last year was the first-ever calendar year when the company's monthly sales crossed the 3-lakh mark in each of the 12 months.

HIGHLIGHTS OF HERO HONDA FOR THE PAST 3 YEARS:

Highlights of Q1, FY’08-09

Total sales for Q1 stands at 8,94,244 units, growth of 11 per cent

Near 55 per cent share in domestic motorcycle market

New manufacturing plant at Haridwar, Uttarakhand, starts production

Total turnover Rs 2890 crores, growth of 16 per cent

Net profit after tax at Rs 273 crores, growth of 44 per cent

EBIDTA margin for the quarter 11.99 per cent

Highlights of Q2, FY'08-09

38

Total turnover (Net sales & Other Operating income) Rs 3202 crores,

growth of 35.6 per cent

Net profit after tax at Rs 306.30 crores, growth of 50 per cent


Total sales for Q2 stands at 9,72,095 units , growth of 28.5 per cent

Total sales for H1 stands at 18, 66,349, growth of 19.7 per cent

Over 55 per cent share in domestic motorcycle market

Launches first-of-its kind music video to celebrate 25 years of Hero

Honda


Corporate Performance:

Total turnover (Net sales & Other Operating income) Rs 2881.27 crores,


Net profit after tax at Rs 300.42 crores, growth of 9.24 per cent

EBIDTA margin for the quarter 14.47 per cent, up from 13.58 per cent in

previous quarter (July-September’08)

Financial Results for Q4, FY'08-09

Total sales for Q4 stands at 9,97,855 units, growth of 13 per cent, three

times that of the industry growth during the period

Total turnover (Net Sales & Operating Income) Rs.3422.52 crores, growth

of 22.24 per cent

Net profit after tax at Rs 402.17 crores, growth of 34.64 per cent


Financial Results for FY'09

39

Total unit sales of 37.22 lakh two-wheelers, growth of 12 per cent, more

than double that of the industry growth during the period

Total turnover (Net Sales & Operating Income) of Rs. 12356.88 crores

Net profit after tax at Rs. 1281.76 crores

Dividend of 1000 per cent

EBIDTA margin for the year 14.16 per cent

EPS of Rs. 64.19/-


Total turnover (Net sales & Other Operating income) Rs. 3822.44 crores,

growth of 34 per cent

Net profit after tax at Rs. 500.11 crores, growth of 83 per cent

EBIDTA margin for the quarter 17 per cent

Total sales for Q1 stands at 11,18,987 units, growth of 25 per cent



Total turnover (Net sales & Other Operating income) Rs. 4059.44 crores,


Net profit after tax at Rs. 597.14 crores, growth of 94.9 per cent


Total sales for Q2 stands at 11,83,235 units, growth of 21.7 per cent



40

Total turnover (Net sales & Other Operating income) 3827.03 crores,





Third consecutive quarter with more than a million units in sales

Financial Results for Q4, FY’10


Total turnover (Net sales and other operating income) Rs. 4122.32 crores,




Financial Results for FY’10

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total turnover (Net sales and other operating income) of Rs. 15860.51

Crores, growth of 28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of

Rs. 2

EBIDTA margin for the year 17.4 per cent

EPS of Rs. 111.77, growth of 74.1 per cent

41


Total cumulative sales for Q1 FY10-11 stands at 12,34,039 units, growth

of 10 per cent

Total turnover (Net Sales & Other Operating income) Rs 4296.61crores


EBIDTA margin for the quarter 14 per cent

Fifth consecutive quarter of million-plus unit sales


Total cumulative sales for Q2 FY10-11 stands at 12,85,944 units, growth

of 9 per cent

25lakh plus unit sales in H1 of FY’11, growth of 9.4 per cent

Total turnover (Net Sales & Other Operating income) Rs 4551.95 crores



Launches the all-new Splendor Pro and the New Super Splendor

HERO HONDA REPORTS TURNOVER OF RS. 5161.66 CRORE FOR Q3’ IN

FY’11

PBT STANDS AT RS 508.03 CRORE & PAT STANDS AT RS. 429.00

CRORE

EBIDTA MARGIN FOR THE QUARTER AT 11.17 PER CENT

TOTAL SALES FOR Q3 FY’11 STANDS AT 14,28,030 UNITS,

GROWTH OF 28.49PER CENT

42

SEVENTH CONSECUTIVE QUARTER WITH MORE THAN A

MILLION UNITS IN SALES.

Impact of promotional tools on sales/ (A case study of Hero Honda bikes at SRI SRI SRI Automobiles).

QUESTIONAIRE

Dear respondent, Please share your views on the following questions. This is part of

project of my M.B.A programme. The information provided by you will be kept confidential.

NAME: PROFESSION:

PLACE: MOBILE NO:

1) Which age range do you fall into?a) 18-25 ( )b) 26-35c) 36-45

43

d) 45 and above

2) What kind of advertising do you find to be the most powerful?a) Print mediab) Electronic media ( )

c) Hoardings d) Specify if any other.…………………

3) Do you think advertising influences you?a) Less than others ( )b) More than others c) About the same as others

4) Do you think advertising of Hero Honda bikes makes you aware of the bike?

a) Yes ( )b) NoIf (yes/no) please specify…………………………………..

5) Do you think advertising shows impact on sales?a) Yes ( )b) NoIf (yes/no) please specify….……………………………….

6) Which model bike do you own?a) Passion pro ( )b) Splendor plusc) Hunk d) Cd-deluxe

7) What made you to opt for Hero Honda bike?a) Advertisements ( )b) Referencesc) Self-interestd) Others

44

8) From the below, mention the source you have gathered the details about the bike. ( )

a) Magazines b) Broachers c) Exhibitions d) OthersIf others specify…………………………

9) Which promotion tool do you think will give more sales?a) Price offs ( )b) Discounts c) Trade shows d) Warranties

10) Are promotional activities necessary for selling a bike?a) Yes b) no ( )

11) Which promotion tool made you to purchase the bike?a) Coupons ( ) b) Price offsc) Warranties d) Test drivese) exchange

12) Is it mandatory for you to have a test drive before purchasing?a) Yes b) no ( )

13) Do social media help in promoting Hero Honda, like?a) Face book ( )b) Twitterc) Others

14) From the below mention the effective promotional strategies?a) Marketing through articles on the net ( )b) Product review promotion

15) Does your purchase decision changes if dealer doesn’t give any offer like free insurance.

45

a) Yes b) no ( )If (yes) specify………………………….

DATE: (SIGNATURE)

THANK YOU

Impact of promotional tools on sales / (A case study on Hero Honda bikes at SRI SRI SRI Automobiles).

PIE- CHART REPRESENTATION

46

INTERPRETATION:

The above pie-chart represents that the customers of age 15-26 are more in number than the other age groups.

1) Which age range do you fall into?

26-3532%

36-4518%

45 and above

6%

15-2644%

15-2626-3536-4545 and above

47

INTERPRETATION:

From the above representation, it is understood that advertising through electronic media is most powerful.

2) What kind of advertising do you find is the most powerful?

print media12%

electronic media60%

hoardings 4%

Others

24%print media

electronic media

hoardings

Others

48

INTERPRETATION:

Here, it represents that advertising influence on customers is more .

3) Do you think advertising influences you ?

less than others34%

more than others54%

about the same as

others12% less than others

more than others

about the same asothers

49

4) Do you think advertising of Hero Honda bikes makes you aware of the

bikes?

yes 78%

no 22%

yes

no

INTERPRETATION:

Advertising makes 78% of the customers aware of Hero Honda bikes, that means the impact of advertising is more.

50

5) Do you think advertising shows impact on sales?

yes66%

no34%

yes

no

INTERPRETATION:

Maximum number of respondents (i.e.66%) says that there is impact on sales due to advertising. And the remaining 34% say that there is no impact on sales.

51

6) Which model bike do you own?

passion plus 32%

splender plus48%

hunk 8%

cd delux12%

passion plus

splender plus

hunk

cd delux

INTERPRETATION:

Most of the customers (i.e.66%) own splender plus, 32% of the customers own passion plus. And the remaining % the other bikes.

52

7) What made you to opt for hero honda bike?

advertisements

18%

references30%

self interest 52%

advertisements

references

self interest

INTERPRETATION:

Out of 100, 52% of the customers purchased Hero Honda bikes of their self interest, 30% of the customers due to references and 18% by seeing advertisements.

53

INTERPRETATION:

28% of the customers gathered the details of Hero Honda bike through magazines. 23% of the customers through brouchers, 21% of the customer by attending exhibitions, and the remaining 28% of the customers through other sources

8) From the below mention the source you have gathered the details of the

bike?

magazines28%

brouchers21%

exhibitions23%

others28%

magazines

brouchers

exhibitions

others

54

9) Which promotional tool do you think will give more sales?

price offs 24%

discounts32%

trade shows6%

warranties38%

price offs

discounts

trade shows

warranties

INTERPRETATION:

The above pie-chart represents that the sales will be more if warranties are given. the % of customers who opt for warranties is 38%.and for discounts is 32%, for price offs 24% and trade shows 6%.

55

10) Are promotional activities necessary in selling a bike?

yes , 84%

no, 16%

yes

no

INTERPRETATION:

Maximum number of respondents says that promotional activities are necessary for selling a bike. i.e. (84%).

56

11) Which promotional tool made you to purchase the bike?

coupons54%

price offs12%

warranties22%

test drives 8%

exchange4%

coupons

price offs

warranties

test drives

exchange

INTERPRETATION:

54% of the customers purchased their bikes because of only coupons.22% of the customers, of warranties12% of the customers, of price offs 8% of the customers have taken a test drive and4% of the customers because of exchange offer provided by the dealers.

57

12) Is it mandatory for you to have a test drive before purchasing?

yes 70%

no30%

yes

no

INTERPRETATION:

Most of the people go for a test drive before purchasing a bike.In this study 70% say yes and 30% of the customers say no.

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13) Do social media help in promoting Hero Honda like ?

Face book 20%

Twitter2%

Others78%

Face book

Twitter

Others

INTERPRETATION:

There is no much impact of social media in promoting a bike. Most of the customers are influenced by their friends .

59

INTERPRETATION:

Product review promotion is the effective promotional strategy as 90% of the respondents gave a positive note on it.

14) From the below mention the effective promotional strategies?

marketing through

articles on the net 10%

product review

promotion90%

marketing througharticles on the net

product review promotion

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15) Does your purchase decisions changes if dealer does'nt give any offer like free insurance?

yes18%

no82%

yes

no

INTERPRETATION:

82% of the customers say that the purchase decision won’t change if the

dealer doesn’t give any offer and the remaining 18% shows that the purchase

decision changes.

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SURVEY FINDINGS:

The consumer prefers Hero Honda in terms of quality and reliability. Hero Honda

enjoys a very strong brand image and brand loyalty. But the company should not

get complacent as a better product from the competitor will dilute the company’s

brand image. It was found that only a small number of consumers came to the

dealers due to its sales promotion. This indicates that there is a scope for

improvement in sales promotion other than free gifts and discounts as it was not

an attractive proposition for their buying decision.

• Customers only stated that promotional activities bring an impact on sales but

most of them are not much influenced by the promotional activities to buy a bike.

• Most of the consumers go for the Hero Honda bikes because of its safe design.

• Hero Honda technology is very innovative so customers like to take it.

• A very high segment of youth goes for the name and goodwill of the Hero

Honda.

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SUGGESTIONS:

• The company should provide free services to its customers in comparison to its

competitors.

• More financing option should be provided such as loans and credits.

• The company should provide more customer value.

• Follow up should be increased.

• Effort should be done for developing the concept of good relationship with

consumers.

• Dealers should encourage its customers by giving discount, providing 0%

interest loan schemes, prices, coupons etc.

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BIBLIOGRAPHY

I have used the following source for finding the data

http: www.herohonda.com http: www.google.com http: www.wikipedia.org Philip Kotler, Marketing Management,Literature from the web sitehttp://www.herohonda.advertisment.pro.coreproduct.org

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http://www.wikipedia.org/

http://www.google.com/

http://www.herohonda.com/

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Project Report on Impact of Promotional Tools in Selling Hero Honda Bikes

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