TIRUMALESH-02

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INTRODUCTION

The Global market for two-wheeler has shown tremendous growth over the past

decade. In 2008 world sales to two-wheelers is 27million. Looked at more closely

however the geographic spread of this growth is very uneven, Asia has accounted for thevast majority of the growth, sales in the entire region growing more than three folds over

the past decade.

China and India alone have accounted for over the half of the worlds two-

wheelers sales. Other large markets in the region are Japan, Indonesia, Vietnam and

Taiwan. Latin America is other important region and in sales there have more than

doubled over the pat 10years with Brazil accounting for the Lions share with a market of

around four lakh units. In line with the regions chequered economic performance over the

past decade, value growth has been Volatile.

So to understand the volatile nature of this sales growth its very important to

analyze the buyer responses under the main head consumer buyer behavior.

CONSUMER BUYER BEHAVIOUR: The buying behavior of final consumers the

individual and households who buy goods and services for personal consumption is

termed as consumer buyer behavior.

Consumers make many buying decisions everyday. Most large companies

research consumer-buying decisions in detail to answer question about.

How they choose a product.

Why they choose a brand.

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How they choose a dealer.

When they purchase.

Which purchase options they choose.

Why they prefer it.

Why they go for Auto Finance option.

And they aware of every rupee they pay.

Consumer buy what, where, how & why when all these can be seriously answered by a

company it has a great advantage over its competitions. In understanding it the marketers

need to assimilate the model of buyer behavior.

Model of Buyer Behavior

Marketing Mix and other stimuli enter buyers black box where they are turnedinto a set of observable buyer responses.

These buyer responses need to be addressed seriously and have to be analyzed by

a professional to bring out the true picture of Buyers expectations and reality.

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Market and other stimuli

Marketing Mix Others

Product EconomicPrice TechnologicalPlace PoliticalPromotion Cultural

Buyers Black Box

Buyer Buyer charac-

Decisionteristics

process

Buyer Responses

Product ChoiceBrand ChoiceDealer ChoicePurchase TimingPurchase Amount


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OBJECTIVES OF THE STUDY

To study the buyer responses on Brand choice.

To study the buyer responses on Product choice.

To study the buyer responses on Dealer choice.

To study the buyer responses on Purchase Timing choice.

To study the buyer responses on Purchase amount choice.

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REVIEW OF LITERATURE

HERO HONDA is the Market Leader in the Motor Cycles segment

in the country with the market share of 43% during the year 2007-2008. The company registered a record sale of 10 Million Motor Cycles

during 2007-2008 there by achieve a growth of nearly 35% over last

year. Hero Honda Motor cycles. Hero Honda is post a turnover Rs.2000

crores in the year. There are 4 million Hero Honda cycles. On the

Indian roads with the brand names of Hero Honda CD100, CD100ss,

Splendor, Passion, Ambition, CBZ, Hunk and Karizma.

Andhra Pradesh is one of the major markets for Hero Honda in

the country. The state has shown increasing tendency motor cycles

and Hero Honda enjoyed an impressive 53% of market with a 45%

growth in A.P there is a network of 29 dealers and 48 authorized

service centers and spare parts stockiest. The twin city alone has 5

dealers and 3 service centers. To supplement and to provide service

availability in far flung areas the company has mobile service

workshops that regularly visit various towns.

The company has constantly been contributing to the cause of the environment, by meeting the strict emission norms of the Govt. an

added feature in the recent launch of a Ride Safe program that is

aimed at promoting the concept of good and safe riding among two

wheeler users in the country. Hero Honda has plans on board for

further initiatives towards fostering stronger relationship with its

customers.

Hero Honda has plans of introducing new models in the futurethat meets the changing user preferences and in line with global

trends. The company is well equipped to meet the challenges and is

riding in to the new millennium on top gear.

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NEED FOR THE STUDY

The project study BUYERS RESPONSE OF HERO HONDA MOTORS

provides an insight into the different parameters of buyer decisions

that make people to purchase, thereby providing a clear picture to the

manufacturer and the dealer of Hero Honda Motors the way to attract

and retain the customer for the survival and growth.

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LIMITATIONS OF THE STUDY

A constraint of time and resources has limited the scope of thestudy.

The survey being conducted in the Twin cities of Hyderabad and

Secunderabad has limited the scope of study.

Since some of the respondents felt that certain questions were

personal there are changes for bias in certain cases.

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2. CONSTRUCTION OF RESEARCH INSTRUMENT

The research Instruments was a structured questionnaire

which was meant to assess customers, dealers and the localmechanics. About a total of 100 questions segregated into 3

different questionnaires and administered.

4. DATA COLLECTION METHOD

The method followed was face-to-face calls. The

questionnaire was administered by means of personal interviews.

5. PILOT STUDY

Few modifications were made after studying the completed

questionnaire and after that a final questionnaire was carried out.

6. FINALISATION OF RESEARCH INSTRUMENT

The final questionnaire was prepared after the study. The

research instrument is actually disguised structured questionnaire.

The few changes made in the given below.

Specific questionnaire, where the chance of getting bias from

the respondents was changed to general questionnaire.

Sequence of question made properly.

Questions were made simpler.

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7. SAMPLING UNIT/SIZE/TECHNIQUES

Sampling unit consists of the customers in the Hyderabadcity, household of middle, higher middle class and higher income

group of people in Hyderabad city. Care was also taken to take

into consideration the different occupational and educational

criterion of the sample.

A dealer network study was also conducted to find out the

factors influencing dealer network in promoting models.

About 25 local mechanics in Hyderabad were administered

with questionnaires to find out customer satisfaction of the Hero

Honda customers and the problems faced by them.

Sample size of consumers above 100 was done as lengthy

questionnaire and also questions took a lot of time to answer.

8. MARKET SURVEY

The market survey was done in all major areas where the

middle & higher

income group people are located in Hyderabad city.

9. INTERPRETATION OF DATA

The collected data was first put in a tabulated from for

each question subsequent responses. After tabulation, averages

and percentages were determined, this helped in interpreting data.

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INDUSTRY PROFILE

The DYNAMICS of the motorized two-wheeler industry in India

make fascinating reading. From a semi luxury product for the urban

middle class in the eighties and earlier, the two-wheeler has now

become not only the favorite mode of personal transport but also

coveted personal (household durable) possession among nearly all

consumer classes, expect perhaps the most affluent. Leading this

emergent boom has been the stylish, fuel-efficient and study four-

stroke motorcycle that seems to be equally at home on highways and

rural byways.

The trend however has been somewhat similar in all the

emerging markets of the world, thanks to the growing economically

active and ambitious class, the relative youth of the population, the

lower cost of the two-wheeler compared to cars in terms of numbers of

months wages required to pay for it as well as its inherentattractiveness, especially to Young male. The worlds largest market is

china followed by India. These countries are also hosts to world-class

plants. Along with the obviously powerful and influential Japanese

manufacturers and brand names such as Honda, Suzuki, Yamaha and

so on, we also se the advent of national brands like Bajaj and TVS

which are also likely to go global setting up marketing and

manufacturing arrangements in the other populous markets of Asia.The game is going to hot up by the year and will remain extremely

price-competitive while remaining performance and reputation driven.

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ORIGIN & GROWTH OF INDIAN INDUSTRY:

The Indian two-wheeler industry made a small beginning in the

early Fifties when Automobile Products of India (API) started

manufacturing scooters in the country. Until 1958, API and Enfield

(motorcycles) were the sole producers. In 1960, Bajaj Auto that had

been trading in imported Vespa scooter and two-wheelers set up a

plant to manufacture them in technical collaboration with Piaggio of

Italy.

The industry had a smooth ride up to the Eighties, when theGovernment prohibited new entries and strictly controlled capacity

expansion. Under the regulated regime, foreign companies were not

allowed to operate in India. It was a complete sellers market.

Today with annual sales of 4.3 million units, the Indian two-

wheeler market is the second largest in the world after China (annual

sales of 10 million). The sector is divided into five major product

classifications: mopeds, motorcycles, scooters, step thru and Ungeared

scooters. Two-wheelers were one of the best performing industry

segments in an otherwise sluggish economy in 2006-07. This

unprecedented growth grew at a robust 42 percent 2006-07 and

represented nearly 66 percent of total two-wheelers sales, against 25

percent in 1998-99.

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Drivers of Growth :

A host of factors are at play driving the industry sales up. Two of them were

customers preferences and new product launches. Customer preferences started changing

the early 1990s as the winds of liberalization swept the country several manufacturers

tasted success on account of their ability to make new products, identify target markets

segments, and create products for them. The evolution of ungeared scooters, launch of

premium scooter models, Japanese motorcycles, all found favor with customers and

translated into growth from manufacturers. The success can be attributed to the effect of a

large pent-up demand for new products, as the Indian consumer had few choices earlier.

Launches of new products of high and consistent quality work a key to growth in 2006-07.

Easy finance options: Only 35-45 percent two-wheeler sales are probably financed through

such schemes now, this proportion has moved up from 15 percent three years ago.

Shorter replacement cycles:

The estimated two-wheeler population in India is about 40

million. The normal life of a two-wheeler is nearly 15years. At least 7percent of the existing population would be above this limit. With

increased consumer spending, spurred by consumer finance schemes,

and a dramatic increase in the number of product variants, the

replacement cycle is becoming shorter.

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Absence of good public transportation:

Public transportation continues to be difficult in India with most

local transport authorities running into lose despite increasing fares.

Two-wheelers offer a convenient alternative.

Affordable mobility:

The cost of a two-wheeler represents about 4-5 months salary of

the average middle class individual, the cheapest passenger car

represents nearly years salary. Besides the fuel efficiency of two-

wheelers on average is 4 times that of a car.

However the Emission norm compliance and rationalization of

sales tax increased the cost to the consumer by 12-15 percent in 2005-

06, triggering stagnation in two-wheeler sales. The Government has

since cut down the excise duty from 24 percent to 16 percent in 2005-

06, rolling back 50 percent of the cost increase.

Product differentiation and market segmentation was the mantra

for growth in the early Nineties. Hero Honda was the first to segment

the market and offer differentiated products. Fuel efficiency and

reliability were its other strengths for success. Now that the Indian

consumer has tasted more diverse products, his appetite for newer

fare has been whetted. Customers, some leading two-wheeler

manufacturers found it in surveys, looked at five key criteria: Fuel

efficiency, reliability, price, style, and power.

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The higher ranking given to fuel efficiency than power explains

the increasing shift towards four stroke vehicles in the motorcycle

category. Four-stroke vehicles provide far greater fuel efficiency but

less power than two-stroke. The aforementioned fire parameters alsoshow that there remains little scope for further market segmentation

and new product introduction. Upgrades incorporating style are

expected to drive growth. As long as established brands are able to

offer that, customers do not go elsewhere.

This is mainly because reliability is what they value the most after

price and fuel efficiency.

Futuristic view of Market Share:

The relative importance of motorcycles has risen consistently

over the past few years. By 2008-09, it is estimated that motorcycles

would account for 80 percent of Indian two-wheeler sales by volume.

They are by far the fastest growing segment, with scooter and moped

volumes seeing steady declines. While scooter sales havepredominantly been in the urban areas, motorcycles sales are split

50:50 among urban and semi / rural areas.

Futuristic Demographic View:

The demography of the Indian population is skewed in favor of

the younger generation, which favors motorcycles to scooters. The

younger generation, divided in the age group between 15 to 34 years,

comprised 33.7 percent of the population in 1998, and was expected to

increase to 35.8 percent by 2003 and further to 39.8 percent by 2008.

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Their motorcycles are far superior in quality to most Chinese makes,

which rely on ancillaries that role out products of inconsistent quality.

Besides, import duties of 45 percent on Cubs and 65 percent onfinished products have little scope for Chinese players to pose a

serious threat to Indian manufacturers. Also cost cutting has allowed

Indian producers to introduce new models at lower price points.

Indian companies have barely made s dent in the export market;

only three percent of total sales volumes come from overseas markets.

However, the potential remains immense, especially for companies

that have developed world-class products and wrung out significant

cost advantages. In fact, China has been identified as an export

opportunity as Indian motorcycles could be attractively priced in the

premium segment and gains some market share from Japanese JVs

operating in China.

Having in-house R&D will be vital for companies that aim for a

significant share in the export market. The recent trend in

manufacturing is that the core technology is addressed by in-house

expertise and other processes are sub-contracted for speed in product

development.

Indian companies, especially those that they have exited

Japanese JVs have started spending more on R&D. in the coming

years, ability to cut cost through Indigenisation will determine the level

of competence and provide a strong foothold in the export market for

companies that aspire to be global players.

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Although India is the second largest two-wheeler in the world

after China penetration levels are low at 38 per thousand people,

compared to Indonesia (75), Thailand (150) and Malaysia (220). This

present ample scope for the industry to grow.

TWO-WHEELER PENETRATION

FY 1997 2005 E 2009 E

Total Households 160.6 180.7 199.2

Middle to UpperClass (Min)

29.6 49.2 80.7

18.4% 27.2% 40.5%

2-Wheelerpopulation

22.5 39.1 64.0

Penetration 76% 79% 79%

As per NCAER estimates, the number of households that can

afford two-wheelers will rise by 10.4 per cent a year to 80.7 million by

2009. Even if penetration levels just remained the same, the two-

wheeler population could grow by 10.4 per cent and two-wheeler sales

could increase by 13 per cent a year assuming 25 per cent

replacement demand.

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On a base of 38.6 million two-wheelers on road, replacement

demand would be a key growth driver. Additionally, with preference for

4-stroke technology, replacement demand from 2-stroke (an estimated

26.5 million vehicles) and mopeds will gain greater momentum anddrive industry growth.

In addition, increased consumer financing will continue to spur

sales. Consumer financing could in turn lead to reduction in the life

cycle of a two-wheeler, raising the replacement demand.

Given long term factors such as the absence of good public

transportation, affordability (price cuts, rising incomes, easy financing)

and replacement demand (two-stroke with four-stroke) the two-

wheeler industry seems to be poised for robust growth in the coming

years.

Motorcycles will however remain the key drivers of growth, until the

manufacturers create an even more customer friendly category.

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The Legend of Hero Honda

What started out as a joint Venture between Hero Group, theworlds largest bicycle manufacturers and the Honda Motor Company

of Japan, has today become worlds single largest two-wheeler

company. Coming into existence on January 19, 1984, Hero Honda

Limited gave India nothing less than a revolution on two-wheeler.

The joint venture between India's Hero Group and Honda Motor

Company, Japan has not only created the world's single largest two

wheeler company but also one of the most successful joint ventures

worldwide.

During the 80s, Hero Honda became the first company in India to

prove that it was possible to drive a vehicle without polluting the

roads. The company introduced new generation motorcycles that set

industry benchmarks for fuel thrift and low emission. A legendary 'Fill

it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely

on the commitment of increased mileage.

Over 19 million Hero Honda two wheelers tread Indian roads

today. These are almost as many as the number of people in Finland,

Ireland and Sweden put together!

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Hero Honda has consistently grown at double digits since

inception; and today, every second motorcycle sold in the country is a

Hero Honda. Every 30 seconds, someone in India buys Hero Honda's

top -selling motorcycle - Splendor. This festive season, the company

sold half a million two wheelers in a single month-a feat unparalleled in

global automotive history.

This is proved by the companys sales over the years:

1990.91 43000 units

1993.94 96200 units

2002.3 560600 units

2003.4 771210 units

2004.5 1129555 units

2005.6 1625195 units

2006.7 2977535 units

2007-08 3545867 units

Consumer satisfaction, a high quality product, the strength of

Honda technology and the Hero groups dynamism have helped HHMLscale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lall Munjal, the Chairman, Hero

Honda Motors succinctly points out, "We pioneered India 's motorcyc

industry, and it's our responsibility now to take the industry to

the next level. We'll do all it takes to reach there.

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SALES PERFORMANCE

The company clocked 7,56,633 units of two wheeler sales during

the period. Hero Honda's cumulative sales for the period April 08

September 08 stood at 15,59,486 units.

Hero Honda Motors Ltd. Year 2007-08 Sales Growth:

Hero Honda Motor Ltd., the countrys largest two-wheeler

maker, finished the year 2007-08 with total motorcycle sales of

3545867 units; a growth of 28% over last years sale of 1625195

motorcycles.

For the month of August 2007, the company posted sales of

240875 motorcycles compared to 215076 in August 2006. As reported

earlier, the economic slowdown, as a consequent of drought in certainparts of the country, and low agricultural production, affected the

demand for a whole lot of durables including motorcycles. Lack of

clarity on VAT issues also impacted sales.

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Aug'06 Aug'07 FY 06-07 FY 07-08Total Sales 2,15,076 2,40,875 12,82,860 12,63,254


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PRODUCT PROFILE

CBZ - XTREME

FEATURES

CBZ XTREME

Presenting the perfect blend of power, style and passion.

Transient Power Fuel Control (TPFC) system: For quick acceleration,

providing a sudden surge when required. A feature, which is used in

some of the most advanced cars.

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Tachometer and Trip meter: Tachometer displays the engine

rotation speed. And a first time feature the Trip meter measures the

distance traveled in a trip.

Dynamic vibration dampers: The dampers incorporated in thehandlebar, ensure that your ride is smooth and simple.

Air injection system: Injects fresh air into the exhaust port, to meetthe emission norms.

Zero Crank Case Evaporative Emission: An advanced pollution

control feature, which is the first of its kind in India. Keeping alive the

Hero Honda tradition of environment friendly bikes.

- Disc brakes on front wheel as standard fitment.

- Comfortable step seat.

- New Age asymmetric Instrument panel in dual tone finish with

tachometer & Trip meter.

- Multi-reflector Headlight with separate pilot lamp on top (2-in-1design).

- An attractive visor with tinted windshield.

- The Adjustable Rear-Shock absorbers have been provided for

extra comfort, and can be easily adjusted into five positions.

SPECIFICATIONS:-

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CBZ - XTREMEEngine 4-stroke single cylinder, Air cooled, OHC

Displacement 149.2cc

Clutch Type Multi plate wetGear box/Transmission 5-speed constant mesh

Ignition AMI- Advanced Microprocessor Ignition System

Starting Self Start/ Kick Start

Suspension (Front) Telescopic hydraulic Shock absorbers

Suspension (Rear) Swing arm with adjustable Shockabsorbers

Wheel Base 1325mm

Ground Clearance 146mm

Brakes

Front Dia 240mm disc

Rear(Drum) 130mm

Wheel & Types

Rim Size Front 18*1.85 Alloy Wheel

Rear 18*2.15 Alloy Wheel

Tyre Size Front 2.75*18-42p

Rear 100/90*18-56p

Kerb Weight 141kg (Kick) / 143kg (Self)

Fuel Tank Capacity 12.3 ltr (1.5 ltr reserve)

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Dimensions

Length 2080mm

Width 765mm

Height 1145mm

WARRANTY: Vehicle/Emission- 3 yrs or 40,000 kms from the date of

purchase, which ever is earlier. Passion Plus

DESIGN Contoured Fuel Tank

Multi- reflector

Trapezoidal

Headlight andTail- lamp

Streamlined side

Cowl

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SAFETY Position Lamp

Side Reflector

Wider Wheel Base Wide & Comfortable

Seat

COMFORT Adjustable Rear

Cushion

Broad Rear Tyre

Double Cradle

Tubular frame

CONVENIENCE Large Storage Space

With Locking Facility

Helmet Holder

Lockable Seat

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SPECIFICATIONS:-

PASSION PLUS

Engine 4- stroke, single cylinder air cooledOHCDisplacement 97.2ccMaximum Power 7.5 Ps at 8000rpmMaximum Torque 7.95N - m@5000rpmBore X Stroke 50.00*49.50mmCompressionRatio

9.0:1

Starting Kick StartIdle Speed 1400rpmFrame Tubular double cradleSuspension Front Telescopic Hydraulic fork

Rear Swing arm with 5 step adjustablehydraulic damper.

Tyre Size Front 2.75 x 18 x 4 PRRear 3.00 x 18 4/6 PR

Final Drive Roller ChainBattery 12 V 205 AhIgnition Electronic CDI

Starting Kick StartWheelbase 1235 mmGround Clearance 159 mmDimensions Length 1980 mm

Width 720 mmHeight 1060 mm

Kerb Weight 116 kgsFuel TankCapacity

12.8 liters (Reserve 1.1 liter)

Battery 12 V 205 Ah

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Super SPLENDOR

Features

Super Fuel Efficiency: New Generation Quantum core Engine

which delivers best fuel effiency from Hero Honda Family.

Super Performance:

New 125cc engine with an output of 9bhp (6.7 kw)

Power delivery is better in the riding zone (0 to 60 Kmph)

than any motorcycles.

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Super Riding Comfort:

A low noise, low vibration engine which results in very little

fatigue.

Comfortable seat making riding a pleasure for both rider

and the pillion rider.

Super Convenience:

Trip-meter to measure distance traveled on a trip.

Provision to change the cam chain externally withoutopening the engine.

Large Utility Box.

Super Styling: Stylish looking broad muffler.

Dazzling body graphics / new pattern stripes.

Newly designed headlight and translucent visor.

Multi reflector headlight and taillight.

Super Reliability & Safety:

Breakthrough offering of 3yrs / 40,000 kms warranty.

Pass Switch & push control indicator switch.

Muffler with heat shield for protection.

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SPECIFICATIONS:-

Super Splendor

Engine 4- stroke, single cylinder air cooled

OHCDisplacement 97.2ccMaximum Power 7.5 Ps at 8000rpmMaximum Torque 7.95N - m@5000rpmBore X Stroke 50.00*49.50mmCompressionRatio

9.0:1

Starting Kick StartIdle Speed 1400rpmFrame Tubular double cradleSuspension Front Telescopic Hydraulic fork

Rear Spring loaded hydraulic type with bothside action.

Tyre Size Front 2.75 x 18 x 4 PRRear 2.75 x 18 6 PR

Final Drive Roller ChainBattery 12 V 205 AhIgnition ElectronicStarting Kick StartWheelbase 1230 mmGround Clearance 159 mmDimensions Length 1970 mm

Width 720 mmHeight 1040 mm

Kerb Weight 109 kgsFuel TankCapacity

10.5 liters (Reserve 1.4 liter)

Clutch Type Manual

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HUNK BECAUSE

=MUSCLES=MATTER

HUNK

Specifications:

Engine 4-stroke single cylinder, Air cooled, OHC

Displacement 149.2cc

Gear box/Transmission 5-speed constant mesh


Idle Speed 1400rpm

Starting Self Start

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Suspension (Rear) Swing arm with 5 step adjustable GRS

(Gas Reservoir Suspension)

Wheel Base 1325mm

Ground Clearance 145mm

Wheel & Types

Rim Size Front 18*1.85 Alloy Wheel

Rear 18*1.85 Alloy Wheel


Rear 100/90*18-56p


Fuel Tank Capacity 12.4 ltrs (Min) (2.2 ltrs (Usable Reserve))

Dimensions

Length 2080mm

Width 765mm

Height 1095mm

Head Lamp 12 V 35 WTail Lamp 12 V 5 W

Turn Signal Lamp 12 V 10 W x 4nos

Battery 12 V 7 Ah

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KARIZMAAlways Game

.

KARIZMA

Always Game

Features:

1) Dials in Bright Yellow for clear Day time Visibility.

2) Cool key sporting the mark of the race.

3) Rear Shock Absorbers with a dash of Red.

4) Sleek New Muffler cover with a Classy Chrome finish.

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Specifications:

Engine 4-stroke single cylinder, Air cooled, OHC

Displacement 223cc

Maximum Power 12.68 KW at 7000RpmMaximum Speed 125 Kmph

Clutch Multi Plate Wet


Brakes

Front Dia 276mm disc

Rear (Drum) 130mm (Internal Expanding Shoe Type)

Wheel & Types

Rim Size Front 18*1.85 Die Alloy Wheels

Rear 18*1.85 Die Alloy Wheels


Rear 100/90*18-56p

Electrical

Battery 12 V 7 Ah

Alternator 188W

Head Lamp 35 W / 35 W Halogen Bulb

Number Plate 5W

Fuse 20 Amps, 15 Amps, and 7.5 Amps


Suspension (Rear) Swing arm with 5 step adjustable GRS

(Gas Reservoir Suspension)


Fuel Tank Capacity 15 ltrs (Min) (2 ltrs (Usable Reserve))Dimensions:Length: 2125Width:

755mmHeight: 1160mm

Wheel Base: 1325mmGround Clearance: 145mm

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COMPANY PROFILE

Hero Honda is the Market Leader in the Motor Cycles

segment in the country with the market share of 43% during the year

2007-2008. The company registered a record sale of 10 Million Motor

Cycles during 2007-2008 there by achieve a growth of nearly 35% over

last year. Hero Honda Motor cycles. Hero Honda is post a turnover

Rs.2000 crores in the year. There are 4 million Hero Honda cycles. On

the Indian roads with the brand names of Hero Honda CD100,

CD100ss, Splendor, Passion, Ambition, CBZ, Hunk and Karizma.

Andhra Pradesh is one of the major markets for Hero Honda in

the country. The state has shown increasing tendency motor cycles

and Hero Honda enjoyed an impressive 53% of market with a 45%

growth in A.P there is a network of 29 dealers and 48 authorized

service centers and spare parts stockiest. The twin city alone has 5

dealers and 3 service centers. To supplement and to provide service

availability in far flung areas the company has mobile service

workshops that regularly visit various towns.

The company has constantly been contributing to the cause of

the environment, by meeting the strict emission norms of the Govt. an

added feature in the recent launch of a Ride Safe program that is

aimed at promoting the concept of good and safe riding among two

wheeler users in the country.

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Hero Honda has plans on board for further initiatives towards fostering

stronger relationship with its customers. On 23 rd all over Andhra

Pradesh Dealer points they have launched customer benefit program

on the name of passport. It is one of the unique programs in the

country.

Hero Honda has plans of introducing new models in the future

that meets the changing user preferences and in line with global

trends. The company is well equipped to meet the challenges and is

riding in to the new millennium on top gear. Recently company has

launched a new motorcycle on the name of Karizma. The model is well

accepted by customers all over the country.

For a step-through coming into a dealing two wheeler market,

Honda Motorcycle and Scooter Indias four stroke machines could not

have been christened better. Its called ACTIVA , and symbolizes

Hondas desire to kick-start a sliding segment. Even its rivals concedethat the 1765 mm long, 1235 mm wide ACTIVA is some to watch. The

ACTIVA will come with two variants, self-start and kick-start, and the

other, just kick-start. Both are likely to provide 50KM/ltr. Fortunately for

Honda, while the geared scooters market declined by 35% between

April & Dec 2007; Sale of gear less scooters (Kinetic, Scotty) grew at 15

percent.

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LITERATURE

B r a n d & P a r a

01 02 03 04 05 06 0

Hero

Honda

Bajaj

TVS

Kinetic

LML

B r a n

Parameters

S ty le

M i le a g e

R e s a le V

P ic k u p

M a in t e n a

INTERPRETATIONS

The following are the conclusions that can be drawn from the abovedata..

The respondents have rated the Hero Honda Motors as themost preferred choice in terms of STYLE with 35% of themvoting for it.The respondents have rated the Hero Honda Motors as themost preferred choice in terms of MILEAGE with 42% of themvoting for it.The respondents have rated the Hero Honda Motors as themost preferred choice in terms of RESALE VALUE with 48% of

them voting for it.The respondents have rated the TVS as the most preferredchoice in terms of PICKUP with 35% of them voting for it.The respondents have rated the Bajaj as the most preferred

choice in terms of MAINTENANCE with 38% of them voting for

it.

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DATA ANALYSIS ANDINTERPRETATION

The respondents product choice is judged on the following parameters

Income,

Age,

Education,

Life Expectancy,

Style,

Mileage,

Pickup,

Resale value and

Maintenance

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INTERPRETATIONS ON THE INCOME, AGE, EDUCATION, LIFEEXPECTANCY

The 100 respondents were asked to scale the performance of various

brands on the basis of the 4 parameters i.e.,

1. Income,

2. Age,

3. Education and

4. Life Expectancy

Parameters& Product

Income Age Education Life Expectancy

Splendor 61 61 61 69Passion 13 13 28 20CBZ 5 4 7 4Karizma 4 7 4 3Hunk 4 4 4 4

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0

1 0

2 0

3 0

4 0

5 0

6 0

7 0

In c o m e A g e E d u c a t io nL ifeE x p e c t

S p le nP a s s ioC B ZK a riz mH u n k

INTERPRETATIONS


The respondents have rated the Splendor as the most preferred

choice in terms of INCOME with 61% of them voting for it.


choice in terms of AGE with 61% of them voting for it.The respondents have rated the Splendor as the most preferred

choice in terms of EDUCATION with 61% of them voting for it.

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choice in terms of LIFE EXPECTANCY with 69% of them voting

for it.

INTERPRETATIONS ON THE STYLE, MILEAGE, PICKUP, RESALEVALUE & MAINTENANCE

The 100 respondents were asked to scale the performance of various

brands on the basis of the 5 parameters i.e;

Style,

Mileage,

Resale value,

Pickup and

Maintenance.

Parameters &Product

Style Mileage Pickup Resalevalue

Maintenance

Splendor 33 31 13 28 35Passion 17 28 12 11 13

CBZ 43 3 41 15 4Karizma 35 8 46 26 1Hunk 4 3 32 7 8

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0

5101520253035404550

Sty Mil Pick Res Main

SplendPassioCBZKarizmHunk

INTERPRETATIONS


The respondents have rated the CBZ as the most preferred

choice in terms of STYLE with 43% of them voting for it.

The respondents have rated the Passion as the most preferred

choice in terms of MILEAGE with 38% of them voting for it.


choice in terms of RESALE VALUE with 41% of them voting for it.

The respondents have rated the Karizma / CBZ as the most

preferred choice in terms of PICKUP with 38% of them voting for

it.


choice in terms of MAINTENANCE with 43% of them voting for it.

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DEALER CHOICE INTERPRETATIONS

The Dealer preference is made on the following basis,

Advertisement (Ads),

Goodwill (Gd),

Fair dealings (Fd),

Customer Relationship Management (CRM),

Service Center Timings (SCT),

Physical facilities (Pf),

Store location (Sl),

Product location and decoration (Pld) and

Electronic kiosks (Ek).

Parameters Ads Gd Fd CRM SCT Pf Sl Pld EkObservations

57 33 49 75 30 24 17 17 13

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A d sG dF dC RS CP f S IP ldE k

INTER PRETATION

Here the respondents are asked to choose three criteria out of the

above 9 criterias in choosing their dealers, so that the scale is 300

points.

Respondents are asked to choose three criteria out of the above

9 criterias in choosing their dealers, so the scale is 300 points.

Respondents in making a dealer choice give utmost importance to the

CRM, as are visible from the graph. CRM is ranked No. 1 for the buyers

to decide the dealer as they have marked 75 points to it, followed by

the advertisements with 75 points for it allowed 57 points and equally

people keep in mind the criteria such as the goodwill and fair dealings

as is observed in the graph.

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PURCHASE AMOUNT ANALYSISSALES ON THE BASIS OF FINANCER

FINANCER

CBL ICICI GE ALFL HDFC OTHERS

SALES 442 946 234 210 95 711

C B LIC IC IG EA L F LH D F CO T H E

INTERPRETATIONS

From the above it is observed that the customers prefer to obtainfinance from ICICI.

CBL is also preferred next to ICICI.

It is followed by GE and then by ALFL and HDFC.

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PURCHASE TIMING INTERPRETATIONS

To analyze the timing of purchasing behavior the monthly sales of April

2006-March 2007 is taken into consideration.

Month Sales

April 831

May 1020

June 805

July 762

August 729

September 603

October 802November 757

December 796

January 674

February 755

March 721

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0

2 0 0

4 0 0

6 0 0

8 0 0

1 0 0 0

1 2 0 0

S a le s

A p r ilM a yJ u n eJ u lyA u g u s tS e p te mO c to b eN o v e mD e c e m

J a n u a r F e b r u a

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INTERPRETATION

It is observed from the above graph that the sales during the months

April and March are the highest. The month of April and May is a

festive season i.e., the Telugu New year Ugadi falls during these

months.

In the month of October also the sales seems to be high, this may be

because of festival i.e., Dussera & Dewali which is considered as one of

the major festivals in the Hindu community. The slacks period are the

months of September and January was the sales are least during these

two months.

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Ei = 100 / 5

= 20

Calculated value of 2 = 20.9

Degrees of freedom = n-1

= 5 -1= 4.

The value of 2 at 5 level of significance at 4 degrees of freedom is 9.488

The calculated value of 2 is greater than the table value.

It is significant. Hence we reject the null Hypothesis Ho.

Conclusion:

We conclude that the training has heightened the morale of employees by

reducing dissatisfaction, complaints, grievances and absenteeism in BUYERS

RESPONSE OF HERO HONDA MOTOR CYCLES Limited.

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Chi square Test

To test the hypothesis that the training programme has improved the quality of work life.

Responses Strongly Agree Agree Average Disagree Strongly Disagree

No. of Workers 32 31 6 22 9

Ho: The training programme has not improved the quality of work life in BUYERS

RESPONSE OF HERO HONDA MOTOR CYCLES Limited

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Observed

Frequency

(Oi)

Expected

Frequencies

(Ei)

(Oi

Ei)

(Oi Ei) 2 ( Oi Ei) 2 / Ei

32 20 12 144 7.2

31 20 11 121 6.05

6 20 -14 196 9.8

22 20 2 4 0.2

9 20 -11 121 6.05

Ei = 100 / 5

= 20

Calculated value of 2 = 29.3

Degrees of freedom = n 1

= 5 1

= 4

The value of 2 at 5 level of significance at 4 degrees of freedom in 9.488

The calculated values of 2 is greater than the table value.

It is significant. Hence we reject the null Hypothesis Ho

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Conclusion:

We conclude that the training programme has improved the BUYERS

RESPONSE OF HERO HONDA MOTORS CYCLS LIMITED.

FINDINGS

The study has revealed that customers while choosing a

particular brand give utmost importance to STYLE, MILEAGE and

PERFORMANCE and as per the study the Hero Honda Motors is

the leader in this aspect.


particular product give utmost importance to Income, Age,

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Education, Life expectancy, Style, Mileage, Pickup, Resale value

and Maintenance and as per the study the Hero Honda Motors is

the leader in this aspect.


particular dealer give utmost importance to CRM and then to

others and as per the study the SRI LAKSHMI MOTORS is the

preferred choice of the respondents.


particular timing give utmost importance to festivals.


particular financier give utmost importance to the easy & quick

processing and interest rates which the ICICI provides to its

valuable customers and thus it is the leading financier in the

finance of two wheelers.

SUGGESTIONS

Value Marketing has become the watchword in this

economic down turn. Rather than offering high quality at a high price,or lesser quality at low prices, marketers should offer financially

cautious buyers greater value-just the right combination of product

quality and good service at a fair price.

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In Indian conditions of economic down turn marketers should

pay attention to income distribution as well as average income.

Income distribution is well screwed. At the top are the upper class

consumers, whose spending patterns not, affected by current

economic events and who are major markets for CBZ, KARIZMA and

PASSION. There is a comfortable middle class that somewhat

careful about its spending but still can afford the good life some of the

time. Finally, the upper class (persons on welfare and many retires)

counts their pennies when making a purchase.

New schemes should be introduced for the students, as there

is much untapped market potential in students.

Guarantee: Registering complaints can boost consumer

loyalty , and this loyalty is increased dramatically when consumer

complaints are addressed. A consumer who complains and satisfied

will tell eight people; but if the experience is negative twice as many

people will hold it.

The company is using current profit maximization as their

pricing goal. The company wants to achieve product quality leadership;

this normally calls for charging a high price to cover high performance

quality and high costs of research and development.

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HERO HONDA MOTORS is doing extremely well in maintaining

its lead position in motor cycle market by releasing new models

frequently. However the company should make sure that it releases

models for; the rural India. Rural will be the future market in the

motorcycle industry.

75% of the vehicle sold is only due to the finance option of

easy installments. Without finance options Hero Honda motorcycles

would not have such high sales. Hero Honda should set up it non-

faineance company.

Some models instead of acting as prep-up-model to splendorhave actually eating the spender sales.

Advertising program must involves a five step process:

First, setting advertising objectives i.e., the advertising must be

informative, persuasive or remind / reinforce.

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Second, to establish a budget.

Third, the message must be executed with the most appropriate

style, tones, words and format and in a socially responsible

manner.

Fourth, the media, TV is the best media because it will deliver

the desired results in terms of circulation, audience, effective

audience and effective Ad exposed audience

Finally marketers must take steps to evaluate the combination

and sales effects of advertising.

SUGGESTIONS

As the location of the showroom is ideally located with middle

class and high upper middle class population, Sri Lakshmi Motors

should try to give more advertisements thorny paper, bill boards

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in that area to enable Re-sale of the people for Sri Lakshmi

Motors.

It should conduct road shows to colleges for the area.

It should earmark a day in a week to organize vehicle clinic

workshops for its customers.

Sri Lakshmi Motors, should constantly keep in touch with its

customers and inform them about the latest models / finance

schemes.

It should employ corporate Mkt. Executives to go and tap the

Industrial belt employees rater than wait for customers to came

to Sri Lakshmi Motors, Sri Lakshmi Motors should go to the

prospective customers with the help of integrated mkt. Efforts.

Sri Lakshmi Motors should track the movement of spare-parts

and stock spare parts in advance otherwise the fake parts would

become popular and justified.

Sri Lakshmi Motors should launch a campaign against take spare

parts by educating customers about the benefits of genuine

spare parts.

Local mechanics should be given incentives when they buy from

the showroom.

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Sri Lakshmi Motors to enlist local mechanic help should try to

organize automobile work / training camp for the local

mechanics.

Value added services like pollution checkup license should be

taken up.

A safe riding tips billboards from Sri Lakshmi Motors should be

setup.

Sri Lakshmi Motors should employ experience mechanics

because the survey has revealed that the mechanics are not

thorough in their job.

Sri Lakshmi Motors should reduce the cost of servicing to about

Rs.100 or less to wean away the customers from local

mechanics.

As the survey has revealed that the sales would increase. V

should understand that how the sales have increased? What is

the % of old customers coming for exchange and what is the %

of new customers understanding this would help better in

formulating customer retention and attraction strategies.

CONCLUSION

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Sri Lakshmi Motors should setup sub dealers in remote localities

in the area. Sri Lakshmi Motors should go to small tours through

road shows in nearby districts.

Sri Lakshmi Motors should create its own website and offer value

added services through website. The website should be

interactive and deal with all aspects from giving information

about models. Finance options, safety tips and suggestions about

vehicle problems.

CUSTOMER QUESTIONNAIRE

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Name:

Place:

Date:

1) Do you own a bike?

a) Yes [ ] b) No [ ]

2) If yes, which bike do you own?

a) HERO HONDA

b) BAJAJc) TVS

d) L.M.L

e) YAMAHA

f) OTHERS

3) Why did you choose the above brand?

a) Brand Image b) Mileage c) Pickup d) Style

e) Maintenance f) Others

4) Who influence you to prefer the above brand?

a) Friends b) Relativesc) Advertisements d) Others

5) Are you aware of Hero Honda?

a) YES b) NO

6) Would you like to own a Hero Honda bike?

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a) YES b) NO

If Yes, Why? _________________________________

7) How do you feel about the price of bike?

a) High b) Low c) Affordable d) None

8) ON what occasion do you buy a bike?

Please Specify ________________________________

9) Do you suggest which brand to your friends & which dealer?

___________________________________________

10) What influences your buying decision ?

___________________________________________

11) which type of desigan will you selected ?

___________________________________________

12) which type of wells will you like ?

___________________________________________

13) did you want low weight or high weight ?

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___________________________________________

14) how much mileage you expecting ?

___________________________________________

15) Please give me your valuable suggestion ?

___________________________________________

___________________________________________.

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BIBLIOGRAPHY

MAGAZINES

1) THE SURVEY OF INDIAN INDUSTRY 2007-THE HINDU

2) BUSINESS WORLD

3) AUTO INDIA

ANNUAL REPORTS

1) HERO HONDA ANNUAL REPORT

WEBSITE

WWW.HEROHONDA.COM

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