61520495 Marketing Strategies of Hero Honda (2)

7/30/2019 61520495 Marketing Strategies of Hero Honda (2)

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SUMMER PROJECT

ON

MARKETING STRATEGIES

OF

HERO HONDA

Efforts By Dhruv VermaF 28A3906410099

ASB

Amity School of Business

Amity University


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ACKNOWLEDGEMENT

I would like to take an opportunity to thank all the people who helped me in

collecting necessary information and making of the report. I am grateful to all of

them for their time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would

like all those who have contributed in completing this project. First of all, I

would like to send my sincere thanks to Mr. Vivek Ahuja for his helpful hand

in the completion of my project.

Dhruv Verma

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EXECUTIVE SUMMARY

The study, which I conducted on the In-depth Analysis of Hero Honda Motors

Ltd in the area of Marketing & Human Resource Management has been a

very gratifying experience at the outset, the objectives were to cover the

whole marketing strategies and Human Resource policies adopted by HHML.

The entire report has been effort to do just that.

Through out the study I found Hero Honda bikes are very new & use modern

technology in their bikes. As a result they give better performance then other

bikes in the market & required less maintenance. Hero Honda also provides

good after sale service to the customer.

Hero Honda has managed to put in spectacular performance going from

strength to strength despite increase in competition, the companys sales

have witnessed an up trend, registering an average growth of 42% in the

three years under review.

Hero Honda has managed to achieve this because of its strong brand image

and proven product quality underpinned the performance growth in recent

years. Apart from the strong brand Splendor the companys presence across

the spectrum of the motorcycle market helped it exploit the growing demand

for 4-stroke motorcycles.

In view of the increasing competition due to globalization and the expansion of

the economy .All industries need to constantly add more attributes andfeatures which consumer wants in two wheelers of their company .In context

company had to adopt more innovative and consumer friendly attributes so

that there product should be more popular among the customers.

Today in this present world the Marketing Strategy of Hero Honda in two

wheeler segment of India and are leading as the world number one two

wheeler company from the past three consecutive years.

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The research assigned to was to study the parameter ore the features that

effect most of the customer satisfaction in the Hero Honda motors limited &

BAJAJ Automobiles .There are many features which effect the two wheeler

company but important among all of them are the following :-

(1) Fuel efficiency

(2) Maintenance

(3) Availability of the product

(4) Resale value

(5) Look and style

(6) Image and brand

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TABLE OF CONTENTS

Chapter No. Topic

1. INTRODUCTION

About The Industry

Products

2. RESEARCH METHODOLOGY

Research Objective

Research Design

Data Sources

Primary Data

Secondary Data

Questionnaire Design/Formulation

Sample Design

Limitation of the Research

3. COMPANY PROFILE

History of Hero Honda comp.

S.W.O.T Analysis

4. DATA ANALYSIS

5. FINDINGS / CONCLUSION

6. RECOMMENDATIONS

7. ANNEXURE

QUESTIONNAIRE

8. BIBLIOGRAPHY

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INTRODUCTION

The Indian two-wheeler industry is dominated by three players, Bajaj, Hero

Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler

market. The other players including Kinetic Engineering, LML and others

account for the remaining 20 percent of the market. The industry can be

divided into three broad segments: Scooters, motorcycles and mopeds. In the

scooters segment Bajaj is the market leader, Hero Honda is the market leader

in the motorcycles segment and in the segment of mopeds, TVS controls the

major chunk of the market.

Most Indian players in the two-wheeler industry had been into some kind of

strategic alliance, technical collaboration or joint venture with foreign players,

mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal-

promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an

alliance with TVS and Suzuki Motors (till September 2006); Bajaj-Kawasaki a

joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a

joint venture between Escorts and Yamaha Motor Corp. (till June 2007).

Indian automobile market, be it the two-wheeler segment, the three-wheeler

segment or the car segment, is yet to come to a stage where all the models

are developed indigenously. For years now, Indian companies have been

dependent on their foreign joint venture partners or collaborators to provide

them with the technical know-how. This trend too is in for a change. Leading

the pack in this arena is Bajaj, which has been Successful at designing

models in-house. Bajaj's Safire and Spirit, have been able to bag the scooter

of the year award for 2006 and 2007 respectively. In fact, its Spirit was

adjudged the "Indigenous product design of the year" for the year 2000. The

recently launched Pulsar from the Bajaj stable is yet another home-grown

product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has

been laying increased emphasis on its R&D so as to be able to launch new

products to tap the markets at all possible price points. Other companies too

are adapting the strategy of designing and developing products indigenously.

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TVS's Victor is yet another development in this direction and this indigenously

built model has been a success in the markets.

ABOUT THE INDUSTRY

Their operations cover spectrum of consumer and industrial application

including motorcycles, mopeds, automotive components and industrial

supplies. In each of these areas Hero is a pioneer and a leader. Hero Cycles

Ltd. is in the Guineas Book of World Records as the worlds largest bicycle

manufacturer.

Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle.

Hero-PACER, PANTHER and ANKUR produced by majestic auto Ltd. areamong the most popular mopeds in the country.

Other companies in the HERO galaxy are Gujarat Cycles Ltd.: Indians most

advanced bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier

of the stock industries: brand leader in shafts and hubs; Highway Cycle

industries: manufacturing free wheels and Sunbeam Castings: making

precision non-ferrous castings.

Modern technologies for systems have transformed the profile of HERO. Yet

the formula for success is unchanged A drive for quality and economy. A

commitment to ancillary development and uncompromising attention to the

common mans need

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HERO GROUP

BUSINESS HERO CYCLES

LIMITED

HERO CYCLES

LIMITED (UNIT II)

GUJARAT

CYCLES

LIMITED

Bicycles Established in 1956

in Ludhiana

Product : Bicycles

Established in

1988 in Sahibabad

Product: Bicycles

Established in

1988 in Baroda

Product : Bicycles

BUSINESS

Auto-Two

Wheelers

HERO HONDA

MOTORS LIMITED

Established in 1983 New

Delhi

Product: motorcycles

collaborator: Honda

motor co. Ltd., Japan

MAJESTIC AUTO

LIMITED

Established in

1978 Ludhiana

Product : mopeds

& fitness

equipment

HERO MOTORS

(A DIVISION OF

MAJESTIC AUTOLIMITED)

Established in

1988 Ghaziabad

Product: mini

motorcycles

Collaborator: steyrdaimler punch,

austria product:

scooters,

collaborators:

Malguti, Italy.

BUSINESS

Bicycle and

Auto

Components

ROCKMAN CYCLE

INDUSTRIES

LIMITED

Established in 1960

Ludhiana

Product:

Automotive &

Bicycle Chains;

HIGHWAY CYCLE

INDUSTRIES

LIMITED

Established in 1971

Ludhiana Product:

Freewheels &

Special Machine

Tools

MUNJAL SHOWA

LIMITED

Established in 1985

Gurgaon Product :

Stock Absorbers

Collaborator: Showa

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Steel & Aluminum

Hubs.

Manufacturing Co.

Japan

BUSINESS

Castings and

steel

MANJAL

CASTINGS

Established in 1981

Ludhiana

Product : Non-

ferrous Castings

SUNBEAM

CASTINGS

Established in 1987

Gurgaon Product :

Non- ferrous

Castings

HERO CYCLES-

COLD ROLLING

DIVISION

Established in 1990

Ludhiana Product :

Cold Rolled Steel

Sheets and Coils

BUSINESS

Services

HERO EXPORTS

Established in 1993

Ludhiana

Product :International

Trading Company

dealing in

Commodities &

Engineering Items

HERO

CORPORATE

SERVICES

Established in 1995

New Delhi Product:

Corporate Service inFinance, HDR, IT &

Strategic Planning

MANJAL SALES

CORPORATION

Established in 1975

Ludhiana Product:

Sole Selling Agentsof Bicycles and

Bicycles Parts for

India.

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HISTORY

The Honda motor company was incorporated in 1948. Since its inception,

Honda has become the large Japanese industrial concern among those

companies incorporated after World War II. It has also been established itself

as the worlds Largest manufacturer of the motorcycles, commanding 25% of

the motorcycle market and nearly 50% of the Japanese market.

Today Honda is acknowledged as the undisputed leader in the motorcycle

technology. Recognized the world over as a pioneer, the Honda name is

guarantee of the technological and the manufacturing excellence of any

product. Honda5s other areas of product excellence include Automobiles and

Power products (Lawn Movers, generators and Outboard motors.)

Honda motor company has 83 overseas production facilities in 35 countries

looked after by 93000 strong force. In 1995 its consolidated sales amounted

over Rs. 140000 crores.

CHAIRMAN PROFILE

Profile of Chairman of Hero Honda Ltd.

Mr. Brijmohan Lal, Chairman of Hero Group of Companies, is a first

generation entrepreneur of 1950s. After partition Mr. Munjal along with his

brothers started the business of bicycle components manufacturing in a

humble way at Ludhiana at a time when the country was beset with

bottlenecks of industrial infrastructure and investments. In his 50 years of

career as an entrepreneur, Mr. Lal has a trail of successes, but his demeanor

is unbelievably warm and loving. At this pinnacle of accomplishment, he is

accessible, forthcoming and friendly- be it with workers, professionals,

business associates or government officials.

Born on July 1, 1923, Mr. Brijmohan Lal advocates corporate governance and

ethical and value-driven management practices. He has been successful in

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steering the business with innovative ideas. He continuously provides group

companies foresight, advice in their business strategies.

Today, the group produces 5 million bicycles and I million two-wheelers

annually. It has a committed workforce of over 15000. The group companies

have been honored with best industrial governance and safety awards under

Mr. Munjals Chairmanship.

Besides managing a large organization, Mr. Lal spends consideration energy,

time and resources to strive for social upliftment of communities and villages

around the factories. He has set up various medical, educational facilities and

infrastructure, actively leads national business associations and also adds

value as Board members of Reserve Bank of India.

Mr. Brijmohan Lal Munjal and his brothers have nurtured the family by training

younger generation members into a distinct culture, which is unique in

providing quality management and enterprise to Indian industry.

REWARDS AND RECOGNITION

Mr. Munjal has received several prestigious awards in his illustrious career

over 50 years:

Mr. Brijmohan Lal Munjal received the Business Man of the Year award

by the Business Indian Group of publications for the year 1994.

Mr. Munjal was also presented the National Award for outstanding

contribution to the development of Indian Small Scale Industry by the

President of India in the year 1995.

He had also received the most admired CEO award from Business Baron

for the year 1999.

He was also awarded the Honorary Membership of the Indian Institution

of Industrial Engineering in 1992.

Mr. Munjal was awarded the Indians of the Century award by Times of

India in 2000.

The XLRI Institute (Jamshedpur) has conferred on him with the Honor of

Sir Jahangir Ghandy Medal for Industrial Peace in 2000.

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Mr. Brijmohan Lal Munjal is also the president of Dayanand Medical

College and Hospital at Ludhiana.

Mr. Brijmohan Lal has also been the member of many important industrials

and business delegations led by Prime Ministers and other ministers toproject the image of the country and also make others aware of the

business opportunities in India.

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PRODUCTS

A Product is something of value that is offered for sale or hire with the aim of

satisfying customer needs. It is a bundle of satisfaction that the customer

buys. A product may be a tangible offer to the market, which includes product

quality, variety, design, features, branding etc. It may also be intangible such

as provision of a service like training or education etc. Many products may

have tangible as well as intangible attributes. For example Daewoo Cielo car

is the tangible product and after sale services and mobile repair anywhere is

an intangible service.

PRODUCT LINE

A product line refers to a group of product clubbed together because they

have one of the above described characteristics in common. The number of

product lines carried by a firm at a given point in time is a function of its

resources and competitive position.

PRODUCT WIDTH

This refers to the number of different product lines marketed by a firm.

PRODUCT DEPTH

This refers to the numbers of product items and their variations (like size,

packaging, colors, etc) offered in each product line.

PRODUCT CONSISTENCY

This is the degree of similarity between product line in end use, technology

and production techniques, distribution channel etc.

The ideal product mix is an issue that varies from firm to firm and may be hard

to define and come by.

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POSITIONING OF THE PRODUCT

Positioning concerns what is in the minds of consumers, in particular in the

minds of your target group(s) of consumers. It is what the consumers think of

the product or the firm or there perception of the product offerings of a firm.

It is about the position your firm, the product, and the brand occupy in the

minds of particular group of consumers, the attributes they associate with your

product, and they have concerning the product. Positioning is something that

goes on in the consumers mind.

BRANDING

A brand is a name, term sign, symbol, or design, or a combination of them,

intended to identify the goods or services of one seller or group of sellers and

to differentiate them form those of competitors.

Branding is a way of labeling your particular product offering to distinguish it

from other competitors product offering.

TYPES OF BRAND NAMES

One name Many different names

Umbrella

corporate

Name

Family

Umbrella

names

Range

names

Separate

individual brand

names

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PRODUCT DESCRIPTON (HERO HONDA LTD.)

Hero Honda has launched the following motorbikes in the Indian market.

Hero Honda CD 100

Hero Honda CD 100 SS

Honda Sleek

Hero Honda Splendor

Hero Honda Street Smart

Hero Honda CBZ

Hero Honda joy

Hero Honda passion

Hero Honda Ambition

Hero Honda Karizma

Hero Honda Dawn

A brief description of these bikes is as follows:

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PRODUCT AND SERVICES

HERO HONDA CD 100

CD 100 The original Fill it, Shut it, Forget it bike is Indias first 4-stroke bike

and is still the Indias foremost. It is an economical and reliable bike which has

the ability to go on and on, year after year. The CD100 4-stroke engine is

derived from Hondas tough economic series range of engine, which makes it,

fuel-efficient. The bike is economical and easy to maintain with optimal oil

circulation of 50ml, for every 1000 kilometers. It has separate oil circulation in

the engine. Hence no possibilities of carbon deposits on piston rings, spark

plug and no silence to worry about.

CD 100 is an improved, easy to ride bike, with illuminated speedometer with a

color- marked economy zone indicating cruising range. The bike has a 97.2

cc, 7.2 hp at 8000- rpm engine. It has an electronic ignition and it weighs at

107 kg (kerb weight). It gives the maximum speed of SO kilometer per hour.

CD 100 comes in a four speed constant mesh all foot shift gears.

The bike is priced at Rs. 37000(ex-showroom Delhi) and at Rs 36000 (ex

showroom Mumbai. CD 100 is available in four colors candy Ruby red, Black,

Amazing Blue metallic and sierra green metallic). The bike confirms to the

year 2000 Euro emission norms.

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HERO HONDA CD 100 SS

The CD 100 SS is a bike that is meant to take on the toughest riding

condition, while continuing to enjoy the legendary fuel economy. The CD 100

SS adds a new dimension of strength to Hero Hondas world famous four-

stroke technology. The bike has a 97.2 cc, 7.2 hp at 8000 rpm. It has a large

ground clearance of 165 mm and it weights at 112kg(kerb weight).

The CD 100 SS has wider tires, to grip the road in any condition giving it

improved cornering stability and safety. The bike has large reinforced shock

absorbers, to soak up bumps on unkind roads, to protect the bike and to give

the ride more comfort. CD 100 SS also has an engine guard, to protect and

engine from the assault of sand, mud and stones, therefore giving it improved

performance. The bike comes with a transmission of 4-speed, constant mesh,

all feat shift gear and it has an electronic ignition. The CD 100SS has a fuel

tank capacity of 10.1 liters (including 2.8 liters reserve). CD 100SS is priced at

Rs. 39,000(ex-showroom Delhi) and at Rs. 37,000 (ex-showroom Mumbai).

The bike is available in the following colors (Candy Ruby Red, Black, Amazing

Blue Metallic, Sierra Green Metallic and Classy Maroon Metallic).

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HERO HONDA SLEEK

Hero Honda Sleek is a 97.2 CC1, 4-stroke, single cylinder, air-cooled bike,

that comes with a Electronic Ignition. The bike has a Multi-plate wet clutch

and it comes with a transmission of 4-speed constant mesh, all foot shift

gears. It has a Backbone frame type. The Sleek has a maximum power of 7.0

hp2 @ 8000 rpm and it gives a maximum speed of 85 Kilometers per hour.

The bike has a ground clearance of 165 mm. And It has a dry weight of 100

Kilograms. The Sleek has a fuel tank capacity of 10.3 liters (including 1.4 liters

reserve).

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HERO HONDA SPLENDOR

Hero Honda Splendor the worlds largest selling motor bike is a 4-stroke,

100cc driving machine. It has smashing good looks and gives excellent

performance. The bikes new engine gives unprecedented fuel efficiency. It

has a well-cushioned Long-slung seat that helps the rider to rest and ride at

the same time. Splendor has very good suspension, which works so well, that

one may never be able to find out what happens between the tires and the

bumpy roads. Splendor is a bike that met the pollution control standards of

1990s.

Splendor comes with a transmission of 4-speed Constant Mesh all foot shift

gears. It has an Electronic Ignition and it weight at 90 Kilograms (Kerb

weight). The bike has a maximum power of 7.5 Ps at 8000 rpm and it gives a

maximum speed of 85 kilometer per hour. The Splendor has a tabular double

crable type frame. The bike has a wheel base of 1230 mm and a ground

clearance of 159 mm.

Hero Honda Splendor is priced at approximately RS 41,000 (ex-showroom

Delhi) and at RS 39,000 (ex-showroom Mumbai). The Splendor is available in

the following colors (Black, Candy Ruby Red, Blaze Blue silver Metallic, Sierra

Green Metallic and Hi Granite Blue Metallic). The Splendor conforms to the

year 2000 Euro emission norms.

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HERO HONDA STREET SMART

Hero Honda Street Smart is a 4-stroke; 100cc bike which delivers great pick-

up, the bike is reasonably priced. The Street Smart comes with trendy front

shield, which makes it sturdier safer and smarter. The bike has Rotary gears

and Auto-Clutch, which makes it amazingly maneuverable. It has a storage

box, which makes it easy to carry bags, lunch boxes etc. The Street Smart

also has an automatic decompression, which makes it easy to start. The bike

also comes in a self-start model, which helps to reduce load on the battery

and enhances its life. Its a sheer convenience for riding. The Street Smart

has Electronic ignition and a background tubular type Frame. It has a ground

clearance of 133mm and it comes with a transmission 4-speed constant Mesh

all feat shift gears. Street Smart has a wheel base of 1205 mm.

Hero Honda Street Smart is priced at approximately Rs 32,000 (ex-showroom

Delhi) and Rs 36,000 (ex-showroom Mumbai). It is available in the following

colours (Candy Ruby Red, Black, Sierra Green Metallic and Purple Metallic).

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HERO HONDA CBZ

Hero Honda CBZ is a bike that is equipped with five gears and 156.8 CC

engines which generates 12.8 Ps power. The bike reaches from 0 to 60

kilometers per hour in just 5 seconds effortlessly touches the top speed of 100

kilometers per hour. The CBZ also has the widest rear tyre, with a unique

tread pattern that is not available on any Indian motorcycle. It also has a large

130-mm drum brakes, and also has an option of front disc brakes, which

enhances its braking performance.

The CBZ also has the Transient Power Fuel Control (TPFC) system which

helps in giving the bike quick acceleration. The bike also has the trip meter,

which measures the distance traveled in a trip. It also has the dynamic

vibration dampers incorporated in the handlebar, which ensures that the ride

is smooth and easy. The air injection system in the CBZ injects fresh air in to

the exhaust part. The unique trapezoidal headlights gives CBZ a stylish look

and helps the Rider to see clearly in the darkest to nights. The CBZ also has a

multi-lever lockable seat which provides storage space and doubles as an anti

theft mechanism for GDI unit RR unit and the battery. The bike also

incorporated the zero crank case evaporative emission, pollution control

feature so advance, that it is seen for the first time in India.

The Hero Honda CBZ is priced at approximately RS 57,000. The bike is

available in the following colors (Black, Tasmania Green, Tahitian Blue,

Candy Sparkling silver and Candy Blazing Red).

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HERO HONDA PASSION

Engine 4-stroke, single cylinder air cooled

OHC

Displacement 97.2cc

Maximum Power 7.5 Ps at 8000 rpmGear Box 4 Speed constant mesh

Clutch Multi-plate wet type

Max. Speed 85 kmph

Frame Tubular double cradle

Suspension Front

Rear

Telescopic Hydraulic fork Swing

Arm with 5 step adjustable

hydraulic damper

Tyre Size Front

Rear

2.75 x 18 x 4 PR

3.00 x 18 3/6 PRFinal Drive Roller Chain

Battery 12 V- 2.5 AH

Ignition Electronic CDI

Starting Kick Starter

Wheelbase 1235 mm

Ground clearance 159 mm

Length 1980 mm

Width 720 mm

Height 1060 mm

Kerb weight 116 mmFuel Tank Capacity 12.8 liters (Reserve 1.1 ltrs)

SPECIAL PHYSICAL FEATURES OF NEW BORN PASSION

PASSION is one of the classiest looking bike HERO HONDA Motors Ltd. has

ever made. Truly going by the traditions of its Corporate Image Leading

The Way, HERO HONDA Motors Ltd. has designed & introduced a bike truly

for the youth of the new century. Its a feast for your eyes

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SOME OF THE PHYSICAL FEATURES THAT ARE DESIGNED IN BIKE

PASSION

HEAD LIGHT

Trapezoidal head light with a multi-reflector lens in a well-designed visor gives

the motorcycle a stylish look. The headlight also has a position lamp. It comes

in handy* when you head light bulb is not working and can go a long way in

providing that extra safety at night.

MUDGUARD FRONT PORTION

Enhances safety for the rider.

FUEL TANK

Newly designed knee grip fuel tank has a capacity of 12.8 litres with a reserve

of 1.1 litres.

STORAGE KIT

A large lockable storage space for imported items.

THE ENGINE

4-stroke, 97.2 cc, single

Cradle Tubular Frame.

THE SIDE COWLING

The integrated side cowl gives a stylish look to the motorcycle. The matching

graphics gels very well with the overall sporty look of the motorcycle.

SHOCKERS

The rear shocker can be adjusted according to the terrain and the ride is as

comfortable on a village road as on a city highway.

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SEAT

A wide and comfortable seat makes for tireless riding. The seat is lockable

tool kit and important papers are safe under it. A helmet holder is also

provided.

BACKLIGHT

A new design taillight with multi reflector makes PASSON the first two

wheeler to use multi reflectors.

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HERO HONDA AMBITION

This 133cc engine gives you the lead. A mileage of 79 kmpl"makes sure

you stay on the road. And the Regal Crest styling makes you feel kingly. It's time to Move up in life. With Ambition, there's no looking back

The 133cc engine with an 11 bhp thrust. Ensured through AMI- Advanced

Microprocessor Ignition system.

A superbly shaped 12.5-litre capacity fuel tank, along with mileage that

ensures you comfortably cross many milestones!

The styling has a touch of royalty, and is topped with a Regal Crest.

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HERO HONDA KARIZMA

The Karizma features a 223cc, 17PS power pack that accelerates you from 0-

60 in 3.8 seconds. Distinctive styling and Mag alloy wheels make this bike stand

out before it races away from the pack.

Digital ignition and a constant vacuum carburetor facilitate better control of

ignition timing.

Priced at Rs. 89,220/- on road Mumbai the Karizma is available in seven

attractive shades.

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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research

problems.

Following steps have to be taken to obtain a correct result.

1. Define Research problem clearly

2. Formulate Hypothesis

3. Develop Research design

4. Collect Data

5. Analysis of Data

6. Interpret and Report

These steps were not fully followed in this study as the research was not

numerically inclined and was not based on primary data.

In this final project the topic is related to the Marketing Research and analysis.

The study of my research is descriptive and is related to the motorcycle

industry. This is the topic, which falls under market leadership, competition,

strategies and other policies of motorcycle Industry.

As my study was more focused on the strategic position of the key players in

the industry, the data was collected primarily through secondary source.

Though some dealers and showrooms were informally visited, and some

information was collected through an unstructured interview.

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METHODOLOGY USED

1. Research Design - The project was designed to be a Descriptive

Research, because the study required an in

depth. Look into the Motorcycle market, its

structure and Status.

2. Datacollection

Method - The basis of this project is the information

collected through Secondary data. In order to

get the view of those related in this market,

some dealers and showrooms were informally

visited.

3. Data Source - All the information was primarily collected

through Business Magazines, Newspaper

cuttings, Internet sites.

The structure of this research was decided while keeping readers in mind. It is

an attempt to put forward my study in easy and simple language.

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RESEARCH DESIGN

TYPE OF RESEARCH: - DESCRIPTIVE RESEARCH

Descriptive research includes Surveys and fact-finding enquiries of different

kinds. The main characteristic of this method is that the researcher has no

control over the variables; he can only report what has happened or what is

happening.

DATA SOURCES

There are two types of data.

PRIMARY DATA

The data that is collected first hand by someone specifically for the purpose of

facilitating the study is known as primary data. So in this research the data is

collected from respondents through questionnaire.

SECONDARY DATA

For the company information I had used secondary data like brochures, website of the company etc.

The Method used by me is Survey Method as the research done is

Descriptive Research.

RESEARCH INSTRUMENTS

Selected instrument for Data Collection for Survey is Questionnaire.

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QUESTIONNAIRE DESIGN/FORMULATION

Questionnaire: - A questionnaire consists of a set of questions presented to

respondent for their answers. It can be Closed Ended or

Open Ended

Open Ended: - Allows respondents to answer in their own words & are

difficult to Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to

Interpret and Tabulate.

TYPES OF QUESTION INCLUDED:

DICHOTOMOUS QUESTIONS

This has only two answers Yes or No.

MULTIPLE CHOICE QUESTIONWhere respondent is offered more than two choices.

IMPORTANCE SCALE

A scale that rates the importance of some attribute.

RATING SCALE

A scale that rates some attribute from highly satisfied to highly unsatisfied

and very inefficient to very efficient

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SAMPLE DESIGN

Who is to be surveyed? The marketing researcher must define the target

population that will be sampled.

The sample Unit taken by me; General public of different age group, different

gender and different profession

EXTENT:-

Where the survey should be carried out?

I have covered entire residential area of Delhi city for the survey

TIME FRAME:-

When the survey should be conducted?

I conducted my survey for 8weeks from 10th may to 10th july

SAMPLING FRAME:-

The source from which the sample is drawn

SAMPLING TECHNIQUE: -

How should the respondent be chosen?

In the Project sampling is done on basis of Probability sampling. Among

the probability sampling design the sampling design chosen is stratified

random sampling.

Because in this survey I had stratified the sample in different age group,

different gender and different profession

SAMPLE SIZE/ POPULATION SIZE: -

How many people should be surveyed?

My sample size is 75

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LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the

results are not particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS

Due to limited time period and constrained working hours for most of the

respondents, the answers at times were vague enough to be ignored in Hero

Honda Auto Mobile Com.

Most of the people in India take their policies in the period preceding March

(for tax saving purposes) & so the response to initial contacts were not all

encouraging and that has been the primary reason in the inability to quantify

the results large enough so as to deduce any relevant outcomes.

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COMPANY PROFILE HERO HONDA

MOTORS LIMITED

Hero Honda Motors Limited was incorporated on 19 th January 1984 as a

result of joint venture collaboration between the worlds largest manufacturer

of Motorcycles Honda Motor Company of Japan and the worlds largest

manufacturer of bicycles Hero Group. The Honda Motor Company of Japan

and the Hero group both contribute an equal 26% share in the equity, with the

rest being with the public.

Hero Honda is today the largest 100-cc motorcycle selling company in the

Indian market. Hero Honda motorcycles have become synonymous with

economy and set standards in the Indian two-wheeler market for their fuel

efficiency, low emission levels and better quality. All this along with the fact

that the companys products are designed for the Indian market and driving

conditions gives it a distinct competitive edge.

Hero Honda Motors Limited launched its first motorbike Hero Honda CD 100

in May 1985. After the launch of the first motorbike, it introduced the Hero

Honda CD 100 SS, the Street Smart, Hero Honda Splendor and the Hero

Honda CBZ, motorcycles in the Indian market.

Hero Honda has acquired around 43% market share in the Indian motorcycle

market. The company has a wide network of dealers and service points with

emphasis on customer care and service. The company has 360 dealers in

India. Hero Honda is the only Two-wheeler Company, which has introduced

automated workshops at all major dealership showrooms. The company has

220 automated workshops in India. In 1990-91, Hero Honda promoted a

company- Hero Honda Fin lease, to provide lease finance to its customers.

Hero Honda was awarded the Best Productivity performance award by the

National Productivity Council for the Automobile industry for the year 1990-91.

The company also received the Economic Times Harvard Business School

Association of India award against 200 strong contenders.

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The company apart from being the market leader in the Indian motorcycle

market also fulfills its obligation to the society. It operates a mobile dispensary

van in the service of those living within 10-Kilometer radius from its plant.

Hero Honda also conducts eye-camps each year also cataract operations on

a charitable basis. The company has, also established the Raman Kant

Foundation, a trust to work exclusively in the area of socio cultural and

educational developments. Hero Honda Motors Limited under its Chairman

Brijmohan Lal Munjal has made tremendous growth and expansion in the

Indian two-wheeler market and has been successfully maintaining its position

as the market leader over the years.

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OVERVIEW

GENERAL INFORMATION

Registered and

Corporate Office

: 34, Community Centre

Basant Lok, Vasant Vihar,New Delhi-110057

Tel:6142451 (9 lines,) 6144121

Fax:6143321, 614321, Gram: HONDABIKE

Works : DHARUHERA PLANT

69th Km. Stone Delhi-

Jaipur Highway

Dharuhere-122100 Dist.

Rewari (Haryana) Tel:

01283-42131-35 Fax:

0128-42399

GURGAON PLANT

37TH Km. Stone Delhi-

Jaipur Highway

Gurgaon-122001

Haryana

Tel:0124-372129-29

Fax: 0124-373141-42

Distance of Work

International Airpot

Head Office

:

:

54 Kms.

60 Kms.

22 Kms.

28 Kms.

Area

Total

Covered

:

:

2,48,000 sq. mts.

61,200 sq. mts. 24.7&

2,83,360 sq. mts.

51,200 sq. 18.07%Technical &

Financial

Collaborators

: Honda Motors Co. Ltd.

No.1 1, 2 Chome

Minami aoyama, Minato Ku,

Tokyo 107, Japan

Tel: 3-3423-111 Telex: J22678 HONDAMATR

Fax: 3-3423-2442

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THE ORGANISATION

Hero Honda Motors Ltd. Unit II is located at 37 th km stone from Delhi on Delhi-

Jaipur highway at Gurgaon (Haryana), amidst clean industrial surroundings

with wide open green areas and lawns.

The factory building itself is refreshingly different. The plant layout is so

designed as to ensure maximum movement of men and material. Maximum

attention is paid to the employees convenience and mobility. The emphasis

on quality is apparent in the clean and congenial working environment in

which the employees can put in their best.

Advanced integrated technology can be seen at work in every operation be it

Press shop, Weld shop, Engine assembly, Frame assembly and final

inspection. An outstanding feature is the most sophisticated and advanced

Engine Plant for the manufacture of the engine components. Another highlight

is the efficient water treatment plant. After treatment the water is pumped into

artificial lakes used for horticulture.

As the modern and technology in the world would come to naught without the

corresponding development of the human values and attributes. Hero Honda

management has realized this need and have made a conscious effort to

create unique work culture in the company. The culture has evolved through a

unique synthesis of the Indian and Japanese styles of management.

EXPANSION PLANS AND FUTURE OUTLOOK

Earlier, HHML has faced capacity constraints and lost significant market share

to competitors during FY95 and FY96. With demand for motorcycles on the

upward curve, the company commissioned a new plant at Gurgaon, with a

capacity of 150,000 vehicles pa in FY97. Capacity at Dharuhera plant in

Haryana has also been expanded from 300,000 vehicles to 350,000 vehicles

during F.Y. 98. In the future too the company has indicated to invest in capital

equipment and regularly introduced new models. The future outlook for the

motorcycles segment looks positive with it capturing a larger share of the cake

from scooters. With customers having become more discerning in terms of

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features and aesthetics, their preference has shifted towards bikes. With

adequate manufacturing capacities and a leading world player as its partner,

HHML is well being intended entry of Honda in the two-wheeler market two

year hence.

ANCILLARIES

HHML has a strong network of ancillaries comprising inter alia, a number of

Munjal group companies such as Munjal Castings, and Munjal Showa. Also

there are dedicated vendors like Rico Auto. HHML has indigenous more than

95% of its components. In line with Honda philosophy, HHML source most of

its component requirement from third party vendors. This allows greater

flexibility in production planning. Materials cost is relatively high and

overheads are lower.

SOCIAL CONTRIBUTIONS:

Hero Honda, believe in a wholesome approach towards development in a

large agrarian economy like India, by assimilating our rural sub systems to the

main steam of development. By doing so we can rural income, generate

employment and can profit basic amenities in the rural areas. In the process

of procuring the ISO 14001 certification the company has implemented the

environment management program which, inter alia, includes the training of

400 employees and codification of guidelines for the control of wastage of

resources. The tree plantation plan of the company continues with the same

vigor.

EXPORTS

In continuation of its pursuit to increase its Export Base, Hero Honda Motors

participated in SAARC & CII Trade Fairs. The response of the product shown

in the fairs was very encouraging & the company expects to clock higher

exports sales during the current Financial Year. During the Year under review

Guatemala, Chile & Costal Rica was added as new product & service

markets.

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MARKETING STRATEGIES

MARKETING

Marketing is challenging and exciting. The solving of marketing problems

required insight, experience and analytical ability. Take the case of a

company faced with the problem of increasing its sales. Increase in the sales

at the expense of profits may not be a desirable objective. Again there are

many ways in which sales can be increased, e.g. by finding new customers or

selling more to existing customers, by increasing advertising and by reducing

the price. The marketing manger must decide which strategy or combination

of methods he should adopt for increasing his sales profitably. He must also

keep in touch with the changing needs and desires of the consuming public as

well as his competitors activities. Thus marketing is interesting, as it required

the marketing manger to be dynamic and not complacent for continuous

prosperity of his organization.

THE MARKETING FUNCTION

However the meaning of marketing is not often clear to people who use the

word. To a salesman it means selling whereas to an advertising manger it

means advertising. High-sounding definitions have also been advanced. For

example, Paul Mazur defined it as the delivery of a standard of living of

society. Thus was expanded by Prof. Malcolm McNair to the creation and

delivery of a standard of living.

Marketing is the primary management function which organizes and directs

the aggregate of business activities involved in converting customer

purchasing power into effective demand for a specific product or service and

in moving the product or service to the final consumer or user so as to

achieve the company-set or other objectives.

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RELEVANT MARKETING FORCES

Consumer habits.

Consumer attitudes and motivations.

Trade structures and practices.

Trade attitudes and motivation.

Types of competition.

Relation of supplies and price to demand.

Position and share of the market.

Trends of competitive behavior.

Government controls, which are applicable.

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CD DAWN

Presenting CD Dawn, the true-value 4 stroke, 100cc motorcycle from Hero

Honda. A motorcycle that encompasses the legendary Hero Honda values of

fuel-efficiency, economy and rock-solid dependability

TOUGH TRACK SUSPENSION

The CD Dawn comes with a unique suspension that smoothens and absorbs

bumps on unkind roads and provides you with continuous riding comfort.

DOUBLY STRONG TUBULAR FRAME

Its double tubular-cradle frame by imparting extra stability to the motorcycle

ensures an exceptionally stable ride.

This and other features - like the legendary Hero Honda mileage, the first-of-

its-kind 2-year warranty in the category and a price that will make you smile, is

what makes the new Hero Honda CD Dawn - Value Nayae Zamane Ki

PRODUCT STRATEGY

Hero Honda shifted its focus from catering to the fuel efficient conscious

consumer to try and occupy other segments of the motorbike market and

therefore the new product launches from Hero Honda in the last three year

have been in this direction. The company has also upgraded some of its bikes

to stay in contention and to meet Euro emission norms. The new underlining

theme for the company One for everyone has led to the launching of new

products, which are as follows:

1) Street Smart: Hero Honda introduced its Street Smart in 1997. The

company who were more inclined towards the scooters and who thought

that the scooters were safer than the motorcycles, thus Hero Honda

decided to launch the Street Smart. The bike was built in such a way that it

resembled more like a scooter, than a motorcycle, but actually it is a

motorbike i.e. it is a hybrid

2) CBZ: Hero Honda introduced the CBZ in 1999. The bike was launched as

a result of the changing trends amongst the Indian customers from fuel

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efficient bikes that were heavier, more powerful, trendy, stylish and

sophisticated. This was done to cater to those customers who wanted to

buy motorbikes for fun, thrill and great driving experience rather than being

cost conscious. CBZ was also launched to acquire the market share from

the heavy motorbike segments, as the company did not have any heavy

motorbike. It was the first time that Hero Honda had made a shift from 100

cc bikes to a 156cc bike.

With the launch of these two motorbikes and various other motorbikes in the

pipeline, Hero Hondas strategy is to get into those segments of the

motorcycle market where they have not made inroads earlier.

Hero Honda continues to have the strategy of parity pricing. They have

neither taken the root of doing heavy discounting nor have they tried to

occupy the premium position. However with the launch of CBZ the company is

gradually getting into the area of premium positioning. The company keeps on

making changes in the pricing of the bikes, whenever there is an increase in

inputs.

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PRICE

Price is one of the important elements of the marketing mix, but lately, it has

come to occupy the centre-stage in marketing wars. The amount of money

that customers have to pay for the product is called price.

Price is the amount of value a product a masses in the market. To a

manufacturer, price represents quantity of money received by the firm or

seller. To a customer, it represents sacrifice and hence his perception of the

value of the product.

Pricing is the only elements in marketing mix that creates revenue, the other

generate costs.

Every firm has different Pricing objectives. A firm can choose from the

following

a) Survival in a competitive market.

b) Maximize current profits and return on investment

c) Balance price over product line

d) Maximize sales growth.

PRICING STRATEGY OF HERO HONDA

Hero Honda continues to have the strategy of parity pricing. They have

neither taken the root of doing heavy discounting nor have they tried to

occupy the premium position. However, with the launch of CBZ the company

is gradually getting into the area of premium positioning .The company keeps

of making changes in the pricing of the bikes, whenever there is increase in

inputs

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Ambition ( Drum & Kick )

Prices (in Rupees)

City Ex. Showroom Price On Road Price

Bangalore 43,857.00 48,512.00Calcutta 45,343.00 48,500.00

Chennai 45,814.00 49,469.00

Delhi 44,612.00 46,873.00

Mumbai 45,513.00 49,806.00

Pune 43,865.00 47,973.00

Ambition ( Disc & Kick )

Prices (in Rupees)


Bangalore 46,514.00 51,413.00

Calcutta 48,066.00 51,400.00

Chennai 48,663.00 52,367.00

Delhi 47,461.00 49,770.00

Mumbai 48,283.00 52,820.00

Pune 46,530.00 50,870.00

Ambition ( Disc & Self Start )

Prices (in Rupees)


Bangalore 51,004.00 56,314.00

Calcutta 52,667.00 56,300.00

Chennai 53,474.00 57,260.00

Delhi 52,275.00 54,666.00Mumbai 52,964.00 57,912.00

Pune 51,034.00 55,767.00

CBZ

Prices (in Rupees)


Bangalore 51,192.09 56,579.71

Calcutta 53,993.73 57,698.73

Chennai 54,939.00 58,120.00Delhi 53,340.74 55,811.74

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Mumbai 58,705 63,213

Pune 51,799 56,657

SPLENDOR

Prices (in Rupees)


Bangalore 40,948 45,331

Calcutta 41,612 44,550

Chennai 41,739 45,310Delhi 41,080 43,281

Mumbai 41,831 45,763

Pune 40,322 44,122

CD100 SS

Prices (in Rupees)


Bangalore 38,375.91 42,530.54

Calcutta 39,003.26 41,800.26

Chennai 39,932.00 42,950.00

Delhi 38,507.68 40,664.68

Mumbai 39,709 42,797

Pune 37,722 41,295

CD100

Prices (in Rupees)


Bangalore 36,896.88 40,915.80

Calcutta 37,494.76 40,199.76

Chennai 38420.00 41,410.00

Delhi 37,023.05 39,155.05

Mumbai 38,992 42,027

Pune 37,231 40,762

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PASSION PLUS

Prices (in Rupees)


Bangalore 41,898 46,403

Calcutta 42,574 45,549

Chennai 42,732 46,857

Delhi 41,885 44,127

Mumbai 43,816 47,920

Pune 42,232 46,198

PASSION PLUS DISC

Prices (in Rupees)


Bangalore 44,494 49,237

Calcutta 45,212 48,150

Chennai 45,365 49,592

Delhi 44,482 46,950Mumbai 46,541 50,882

Pune 44,853 49,048

SPLENDOR+ DRUM

Prices (in Rupees)


Bangalore 40,447 44,818

Calcutta 41,111 46,500Chennai 41,223 45,321

Delhi 40,579 42,788

Mumbai 42,351 46,328

Pune 40,822 44,666

SPLENDOR+ DISC

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Prices (in Rupees)


Bangalore 43,043 47,653

Calcutta 43,749 49,200Chennai 43,856 48,001

Delhi 43,175 45,311

Mumbai 45,076 49,290

Pune 43,444 47,516

CD DAWN

Prices* (in Rupees)


Bangalore 31,379.00 35,213.00

Calcutta 31,899.00 33,999.00

Chennai 30,899.00 34,800.00

Delhi 31,899.00 33,944.00

Mumbai 32,065.00 35,147.00

Pune 30,899.00 33,880.00

*This price includes the Celebration discount of Rs. 1001/-

PLACE

The place element of the marketing mix concerns decisions regarding how the

company or firm makes their products available to the consumers. It involves

the various activities a company undertakes to make the product accessible

and available to the target customers. This is the distribution element of the

marketing mix. It also understands the various types of retailers, wholesalers,

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and physical distribution. Place in broader term includes Channels, Coverage,

Assortments, Locations, Inventory, Transport, etc.

There are three broad decision areas in distribution. These are channel

strategy, channel management and physical distribution.

CHANNEL STRATEGY

A channel is a pipeline through which the product is passed to get from the

manufacturer to the end-user.

LENGTH OF A CHANNEL

The numbers of intermediary channels are used to designate the length of a

channel.

A zero level channel (also called direct-marketing channel). It consists of a

manufacturer selling directly to the final customer.

Manufacturer Consumer

A one level channel contains one selling intermediary such as a retailer.

Manufacturer Agent/dealer/retailer Consumer

A Two level channel contains two intermediaries

Manufacturer Wholesaler /dealer/Retailer Consumer

A Three level channel contains three intermediaries.

Manufacturer Distribution Wholesaler Retailer Consumer

CHANNEL MANAGEMENT

Channel management ensures that the firm manages there intermediaries so

that they can get the best out of them. It is about the relationship that the firm

has with their intermediaries, the margins they give them, the training and

support they provided and the activities and service that the firm requires from

them in exchange.

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PHYSICAL DISTRIBUTION

Physical distribution concerns the logistics of getting your product from the

factory floor to the end user. It is about the issues such as the re-ordering of

stock by intermediaries; whether to use trucks or train to transport the

products; whether it is better to have one factory and several dispersed

warehouses factories from which the firm transports the finished goods direct

to wholesalers and retailers.

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CHANNEL OF DISTRIBUTION IN HERO HONDA

Hero Honda continues to have the same policy of directly approaching the

dealers. However the company has made some changes in the dealership

requirements. The company has now divided its into three categories, A, B

and C depending upon the status of the town. Hero Honda has made some

regulations and its dealers are bound to fulfill specific requirements for their

showroom and workshops in terms of area. The company has also started

focusing on the rural marketing such as Agartala (Tripura), Tinsukia (Assam)

and Bhagalpur (Bihar). The company has also increased the number of

dealers from 350to 400.

DISTRIBUTION CHANNELS-

Hero Honda has very strong Distribution channel in India. Hero Honda

distributes its products through Regional officer, Authorized dealers Etc.

HERO HONDA IN INDIAN HAS 3500 AUTHORISED DEALER

Criteria for selection of distributions;

1. Financial position to the distributors

2. Goodwill

3. Situation of show room

4. Past record

5. Experience

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PROMOTION

Promotion concerns the message the firm sends out to potential consumers. It

provides information and persuades people. It creates awareness, stimulates

demand, differentiates the product and influences public behavior. Promotion

wont make a bad product that no one wants a success; although the absence

of promotion might be that 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.

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PROMOTIONAL TOOLS OR PROMOTION MIX

PERSONAL SELLING:

It involves personal confrontation either by phone or face. It is an expensive

and time consuming tool of promoting the product.

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 firms can advertise.

BROADCAST MEDIA

Television

Radio

Cinema

PRINT MEDIA Newspapers

Magazines

Leaflets

OUTDOOR MEDIA

Posters and Billboards

PUBLIC RELATIONS AN PUBLLICITY:

A public relations is an umbrella term and refers to the totality of the

organizations behavior with respect to the society in which it operates. They

maybe regarded as good or bad and is reflected in the companys reputation

and image.

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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.

SALES PROMOTION:

It is direct inducement which offers an extra value of incentive for the product.

It is directly related to sales and induces an immediate response from the

consumers.

Trade promotion: These campaigns are run for the trade (intermediaries

who stock or push the product) to encourage them or stock or push the

product.

Consumers sales promotion: These are sales promotions aimed at the

end customer.

DIRECT MARKETING:

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

media to affect a measurable response at any locations.

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.

Mail order.

Factors that guide a marketers decision in selecting a promotion mix:

(A) Nature of product

(B) Overall marketing strategy

(C) Buyer readiness stage

(D) Product life cycle stage.

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PROMOTION POLICY

A. COMPANY GIVE ADVERTISEMENT IN DIFFERENT MEDIA VEHICLES

TIME TO TIME. LIKE IN TV, MAGAZINES, NEWSPAPER, ETC.

B. HERO HONDA ALSO ORGANISES FREE SERVICE CAMPS EVERY

YEAR.

C. HERO HONDA ALSO TAKE PART IN TRADE FAIR

D. HERO HONDA WITH THE HELP OF ICICI BANK PROVIDES LOAN TO

THE CUTOMERS & ALSO PROVIDE EASY MONTHLY INSTALMENT

SCHEME TO CUSTOMERS.

HERO HONDA GIVES HUGE COMMISSION TO ITS DEALERS.

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SWOT ANALYSIS

STRENGTHS

Hero Honda introduced first-stroke bike in the India market Hero Honda gives 80 km/litre.

Huge sale network (3500 Dealers)

Better sale service

WEAKNESSES

Suppose to be very sophisticated

Not fit for rural India.

OPPORTUNITIES

Hero Honda is the first manufacture to launch eco-friendly bikes with 4-

stroke engines. They have attained a strong good will and popularity in

the industry and the consumers.

Therefore, it has huge potential to retain existing consumers and

develop new market share.

As Government policies are amended against pollution in metro cities,

Hero Honda being 4-stroke bike manufacture have great opportunities

to explore its new innovations and technologies.

THREATS

Main Threats for Hero Honda are their competitors like: -

Bajaj Auto

TVS-Suzuki

Escorts Yamaha

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DATA ANALYSIS

1. Please mention your age group

18-20 21-2526-30 31-3536- Above

18-20

9%

21-25

33%

26-30

11%

31-3537%

36 Above

10%

2.) Please mention your income group (per annum in thousand)

75-100 100-125125-150 150-175

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175 & above

75-100

17%

100-125

57%

125-150

11%

150-175

11%

175 above

4%

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3) Gender

Male Female

Female

45%Male

55%

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4. Name three motorcycle companies that come to your mind

Hero Honda Motor Ltd.Bajaj Auto Ltd.

Escort Yamaha Motors Ltd.Royal EnfieldTVS Ltd.

61

0

5

10

15

20

25

30

35

40

45

Yamaha LML TVS Bajaj


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5. What are the things that you look while purchasing a bike?

Fuel efficiencyLooks

Low maintenance costReliability(less chances of breakdown)Least physical effortsLow price

62

71

14

33

66

0

10

20

30

40

50

60

70

80

Maintenance

cost

Looks Physical efforts Fuel economy


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6. Which other bike would bike you have preferred to buy?

Yamaha LMLTvs motors Bajaj Pulsar

63

71

14

33

66

0

10

20

30

40

50

60

70

80

Maintenance

cost

Looks Physical efforts Fuel economy


64/73

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CONCLUSIONS

The study, which I conducted on the In-depth Analysis of Hero Honda Motors

Ltd. in the area of Marketing & Human Resource Management has been a

very gratifying experience at the outset, the objectives were to cover the

whole marketing strategies and Human Resource policies adopted by HHML.

The entire report has been effort to do just that.

Through out the study I found Hero Honda bikes are very new & use modern

technology in their bikes. As a result they give better performance then other

bikes in the market & required less maintenance. Hero Honda also provides

good after sale service to the customer.

Hero Honda has managed to put in spectacular performance going from

strength to strength despite increase in competition, the companys sales

have witnessed an up trend, registering an average growth of 42% in the

three years under review.

Hero Honda has managed to achieve this because of its strong brand image

and proven product quality underpinned the performance growth in recent

years. Apart from the strong brand Splendor the companys presence across

the spectrum of the motorcycle market helped it exploit the growing demand

for 4-stroke motorcycles.

At the lower, end, the company has CD 100 and CD100 SS and at the middle

level splendor, passion & joys. The CBZ the CBZ range is targeted, at the

premium segment. Thus one may say that the marketing strategies adopted

by Hero Honda have really paid-off, as the company has constantly managed

to increase its market share and also increase its sales .Which is really

amazing for a company which has been a market leader to maintain its strong

position in the wake of growing competition from its competitors who have

been trying to grab a strong share in the market by launching latest

technology products.

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Last three data show that demand of Hero Honda bikes increase & market

trends indicated that in future more demand for Hero bikes expected.

Hero Honda has been very understanding to its employees. It treats all its

employees as the biggest asset of the company. Its innovative H.R. policies

are made to ensure that the best of talent, which the company employs,

receives the best of talent, which the company employs, receives the best of

remuneration. Also the non-monetary incentives given to the employees are

such as to maintain the motivation to an time high.

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RECOMMENDATIONS

No matter how much on organization progresses it always lack something.

These are shortcoming of every company. After completing my report on new

Hero Honda motors Ltd., I have some suggestions to offer. The suggestions

can be proved useful for the company as they have feasibility and viability.

The Recommendations are: -

Hero Honda Motors only manufacture a wide range of 4-stroke bike. But in

my opinion 2 stroke bikes have a better pick-up. So in order to letter to the

need of a large segment of customers, who want a better pick-up bike,

Hero Honda should go into the manufacture of 2 stroke bikes.

The company has always targeted urban sector of Indian population. But

in the rural sector Escorts, Rajdoot enjoy a great market share. So,

therefore Hero Honda should target this upcoming market.

Hero Honda should keep a strict watch on competitions. For instance

Yamaha has introduced a 4-stroke bike YBX whose features are almost

same as Splendors.

The company should work more on public relation.

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ANNEXURE

QUESTIONNAIRE

CONSUMER SURVEYName: ______________________

Address: _____________________

Q1. Please mention your age group

18-20 21-2526-30 31-35

36- Above

Q2.) Please mention your income group (per annum in thousand)

75-100 100-125125-150 150-175175 & above

Q3) Gender

Male Female

Q4) Martial Status

Married Unmarried

Q5) please mention your occupation 0

Officials Clerical or SalesmenStudent First Jobbers Retired

Q6) Name three motorcycle companies that come to your mind

Hero Honda Motor Ltd.Bajaj Auto Ltd.Escort Yamaha Motors Ltd.Royal Enfield

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TVS Ltd.

Q7) What are the things that you look while purchasing a bike?

Fuel efficiency

LooksLow maintenance costReliability( less chances of breakdown)Least physical effortsLow price

Q8) How did you get to know about Hero Honda that you having at present?

AdvertisementFamily informationFriends recommendationDealers recommendation

Q9) Which other bike would bike you have preferred to buy?

Yamaha LMLTvs motors Bajaj Pulsar

Q10) Prefer Hero Honda splendor than other bike because of:

Fuel economyLess physical effortsBetter looksLow maintenance cost

Q11) Would prefer TVS Victor to Hero Honda Splendor because of:

Fuel economyPriceBrand imageLow maintenance cost

70


71/73

Q12) what is the image of HERO HONDA in your mind?

EconomicalDurable

Smooth BikeSafe BikeRough and Tough

71


72/73

72


73/73

BIBLIOGRAPHY

BOOKS

Marketing Management Kotler Philip Marketing Ghandhi J. C.

Principles of Marketing Palmer Adrian

Marketing Management Ramaswamy V. S.

NEWS PAPERS

The Economic Times.

The Times of India.

MAGAZINES

Business World June 2006

India Today.- June 2007

WEB SITES

SPECIFIC SITES

www.herohonda.com

www.indianinfoline.com

www.premjis.com

www.sirindia.com

SEARCHING SITES

www.google.com

www indiatimes com

61520495 Marketing Strategies of Hero Honda (2)

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