AJIT HONDA

87
COMPANY TRAINING PROJECT REPORT ON MARKETING AND HUMAN RESOURCE MANAGEMENT COMPLITED IN HERO HOND Submitted in partial fulfillment of the requirement of Bachelor in business administration (BBA), from Guru Jambheshwar University of science and technology. Training supervisor Submitted by ANMAMIKA CHOPRA Ajit Kumar Enroll. Id - 048820189 Batch: 2004-20007 1

Transcript of AJIT HONDA

Page 1: AJIT HONDA

COMPANY TRAINING PROJECT REPORT

ON

MARKETING AND HUMAN RESOURCE MANAGEMENT

COMPLITED IN

HERO HOND

Submitted in partial fulfillment of the requirement of Bachelor in business administration (BBA), from Guru Jambheshwar University of science and technology.

Training supervisor Submitted byANMAMIKA CHOPRA Ajit Kumar

Enroll. Id -048820189

Batch: 2004-20007

INDRAPRASTHA INSTITIUTE OF TECNOLOGY ANDMANAGEMENT

1

Page 2: AJIT HONDA

STUDENT UNDERTAKING

THIS PROJECT IS SUBMITTED TO INSTITIUTE OF INFORMATION

TECNOLOGY ANDMANAGEMENT AS SUMMER TRAINING

PROJECT FOR BACHELOR OF BUSINESS ADMINISTRATION

(B.B.A.) 2004-2007”

PROJECT GUIDE

By

2

Page 3: AJIT HONDA

PREFACE

HERO and HOND first come together for a possible joint venture

to inter the automobile market in 1948. It was clear from the outset

that both companies shared similar values and beliefs and a strong

relationship quickly formed. It has also been established itself as the

world’s largest manufacturer of the motorcycles, commanding 25% of

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

3

Page 4: AJIT HONDA

ACKNOWLEDGEMENT

My first and foremost thanks to God Almighty ho helped me to

complete my project work. I take this opportunity to express my

profound gratitude to Mrs. Shilu (project incharge) whose support and

suggestions were immense in enabling the successful completion of

this project.

Finally, my hearty thanks to my parents and friends for their moral

support, suggestions and encouragement.

4

Page 5: AJIT HONDA

TABLE OF CONTENTS

1. INTRODUCTION

2. OBJECTIVES

3. COMPANY PROFILE

4. RESEARCH METHODOLOGY

5. MARKETING STRATEGIES

6. PRODUCT

7. PRICE

8. PLACE

9. PROMOTION

10.S.W.O.T ANALYSIS

11.LIMITATION

12.CONCLUSIONS

13.RECOMMENDATIONS

12.BIBLIOGRAPHY

5

Page 6: AJIT HONDA

1.INTRODUCTION

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 world’s 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. Honda 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. Hero Honda

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

highway at Gurgaon (Harayana), amidst clean industrial surroundings

with wide-open green areas and lawns.

6

Page 7: AJIT HONDA

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 employee’s 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.

What makes Hero Honda well, Hero Honda, is synergy. The two

partners, leaders in their respective domains, have been able to

7

Page 8: AJIT HONDA

consistently draw on each other's strengths. The Hero Group's deep

domain knowledge of the Indian market and its supplier network has

meshed with Honda's mastery over four-stroke engine technology to

create modern and fuel-efficient machines at affordable prices for

India 's 250-300 million strong middle class.

Progressively through the 1980s, the 1990s and now in the 2000s,

Hero Honda has relied on 3 R's-- Reach, Research and Reliability

as its basic building blocks. Using feedback from the market, a fully-

equipped R&D center has consistently created best practices in

designing, testing and harmonization, besides placing strong emphasis

on road safety and ride quality. This emphasis has helped Hero Honda

build products that are ahead of their time.

Hero Honda was also one of India’s first automotive companies

to get close to the customer. Over the years, feedback has flowed back

and forth seamlessly through a unique CRM program – the Hero Honda

passport program that now has over 2.5 million members on its roster.

The program has not only helped Hero Honda understand its

customers and deliver value at different price points, but has also

created a loyal community of brand ambassadors.

The best is yet to come. Hero Honda is powering its way through a

market that is still to unleash its true potential , as barely two percent

of the population has been penetrated so far!

8

Page 9: AJIT HONDA

It is not surprising that the company is in no mood to take its hand off

the throttle. As Brijmohan lall munjal, the chairman, Hero Honda

motors succinctly puts it, “we pioneered India’s motorcycle industry,

and its our responsibility now to take the industry to the next level. We

will do all it takes to reach there”.

AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help

you every step of the way in making your world a better place to live

in. Besides its will to provide a high-quality service to all of its

customers, Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the important

issues.

Hero Honda has been strongly committed not only to environmental

conservation programmes but also expresses the increasingly

inseparable balance between the economic concerns and the

environmental and social issues faced by a business. A business must

not grow at the expense of mankind and man's future but rather must

serve mankind.

9

Page 10: AJIT HONDA

"We must do something for the community from whose land

we generate our wealth."

A famous quote from our Worth Chairman Mr.Brijmohan Lall Munjal.

Expansion plans and future outlook

10

Page 11: AJIT HONDA

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

features and aesthetics, their preference has shifted towards bikes.

With adequate manufacturing capacities and a leading world player as

its partner, HHML is well be intended entry of Honda in the two-

wheeler market two year hence.

HERO HONDA’S MISSION

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

system and human resources, to produce product and services that

meet the quality, performance and price aspiration of its customers. At

11

Page 12: AJIT HONDA

the same time maintain the highest standards of ethics and social

responsibilities.

This mission is what drives Hero Honda to new heights in excellence

and helps the organization forge a unique and mutually beneficial

relationship with all its stake holders.

HERO HONDA REGISTERS 23% GROWTH IN JUNE ‘06

Records a growth of 21% sales in Q1 of 2006-07

Hero Honda, the ‘World no.1’ two-wheeler company, continues to

strengthen its leadership in the Indian two-wheeler industry,

registering impressive growth in sales in the first quarter of the FY

2006-07.

For the quarter ending June 2006, the company achieved cumulative

sales of 8,32,692 units, recording a growth of 21.29% compared to

the same period last year. During the corresponding period last

financial year, the company had recorded sales of 606494 units in the

first quarter ending june2005.

In June 2006, the company sold 278660 units registering an

impressive growth of 23.26% as against 226073 units in June last

year.

12

Page 13: AJIT HONDA

During the month, Hero Honda launched Glamour F1- India’s first Fuel

Injection motorcycle. The new technology eliminates rhe need for a

carburetor, offers the most comfortable drive and the lowest emission,

in addition to host of other features, which is now available for the first

time to Indian two wheeler riders.

SALES PERFORMANCE

Jan ‘06 Jan ‘07 FY 05-06 FY 06-07

Total Sales 249450 297554 2477744 2778326

Ancillaries

HHML has a strong network of ancillaries comprising inter alias, a

number of Munjal group companies such as Munjal Castings, and

Munjal Showa. Also there are dedicated vendors like Rico Auto.

13

Page 14: AJIT HONDA

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 Fair’s. The response of

14

Page 15: AJIT HONDA

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 were

added as new product & service markets.

HERO GROUP OF COMPANIES:

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

world’s largest bicycle manufacturer.

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

motorcycle. Hero-PACER, PANTHER and ANKUR produced by majestic

auto Ltd. are among the most popular mopeds in the country.

Other companies in the HERO galaxy are Gujrat Cycles Ltd.:

Indian’s 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

15

Page 16: AJIT HONDA

uncompromising attention to the common man’s need

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 DelhiProduct: motorcycles

MAJESTIC AUTO LIMITED

Established in 1978 Ludhiana Product : mopeds &

HERO MOTORS(A DIVISION OF MAJESTIC AUTO LIMITED)

Established in 1988 Ghaziabad Product : mini motorcycles

16

Page 17: AJIT HONDA

collaborator: Honda motor co. Ltd., Japan

fitness equipment

Collaborator: steyr daimler punch, austria product: scooters, collaborators: Malguti, Italy.

BUSINESS

Bicycle and Auto Components

ROCKMAN CYCLE INDUSTRIES LIMITED

Established in 1960 LudhianaProduct :Automotive & Bicycle Chains; Steel & Aluminium Hubs.

HIGHWAY CYCLE INDUSTRIES LIMITED

Established in 1971 Ludhiana Product: Freeweheels & Special Machine Tools

MUNJAL SHOWA LIMITED

Established in 1985 Gurgaon Product : Stock Absorbers Collaborator: Showa 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 Commodoties & Engineering Items

HERO CORPORATE SERVICES Established in 1995 New Delhi Product: Corporate Service in Finance, HDR, IT & Strategic Planning

MANJAL SALES CORPORATION

Established in 1975 Ludhiana Product: Sole Selling Agents of Bicycles and Bicycles Parts for India.

17

Page 18: AJIT HONDA

2.OBJECTIVES

The corporate objectives of the company are:

1. To supplies the products of highest quality at the reasonable

price for customer’s satisfaction and for the benefits of the

society in general.

2. To provide concerned person with happiness in associated with

the company.

3. To offer joy to vendors supplying the components.

4. To offer joy to dealers of selling the products.

18

Page 19: AJIT HONDA

3.COMPANY PROFILE – HERO HONDAMOTORS LIMITED

Hero Honda Motors Limited was incorporated on 19th January

1984 as a result of a joint venture collaboration between the world’s

largest manufacturer of Motorcycles “Honda Motor Company of Japan”

and the world’s 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

19

Page 20: AJIT HONDA

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 company’s 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

Finlease, 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.

20

Page 21: AJIT HONDA

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.

4.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

21

Page 22: AJIT HONDA

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.

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; it's structure and Status.

2. Data collection

Method - The basis of this project is the information

collected through Secondary data. In order

to get the view of those related in this

22

Page 23: AJIT HONDA

market, some dealers and showrooms were

informally visited.

3. Data Source - All the information were 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.

OVERVIEW

GENERAL INFORMATION

Registered and Corporate Office

: 34, Community Centre Basant Lok, Vasant Vihar, New Delhi-110057Tel:6142451 (9 lines,) 6144121Fax: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 WorkInternational 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 & : Honda Motors Co. Ltd.

23

Page 24: AJIT HONDA

Financial Collaborators

No.1 –1, 2 ChomeMinami – aoyama, Minato – Ku,Tokyo – 107, JapanTel: 3-3423-111 Telex: J22678 HONDAMATRFax: 3-3423-2442

5.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

24

Page 25: AJIT HONDA

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”.

(A) RELEVANT MARKETING FORCES

Consumer habits.

Consumer attitudes and motivations.

25

Page 26: AJIT HONDA

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.

26

Page 27: AJIT HONDA

6.PRODUCT

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.

27

Page 28: AJIT HONDA

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, colours, 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.

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

28

Page 29: AJIT HONDA

the consumers think of the product or the firm or their 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 competitor’s product offering.

Types of brand names

One name Many different names

Umbrella corporate

Name

Family Umbrella Names

Range Names

Separate individual

brand Names

29

Page 30: AJIT HONDA

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:

30

Page 31: AJIT HONDA

PRODUCT AND SERVICES

HERO HONDA CD 100

CD 100 The original “Fill it, Shut it, Forget it” bike is India’s first 4-

stroke bike and is still the India’s 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 Honda’s 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 colour- 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 colours

31

Page 32: AJIT HONDA

candy Ruby red, Black, Amazing Blue metallic and sierra green

metallic). The bike confirms to the year 2000 Euro emission norms.

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 Honda’s

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 tyres, 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 colours

32

Page 33: AJIT HONDA

(Candy Ruby Red, Black, Amazing Blue Metallic, Sierra Green Metallic

and Classy Maroon Metallic).

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).

HERO HONDA SPLENDOR

Hero Honda Splendor the world’s largest selling motorbike is a 4-

stroke, 100cc-driving machine. It has smashing good looks and gives

excellent performance. The bike’s 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

33

Page 34: AJIT HONDA

has very good suspension, which works so well, that one may never be

able to find out what happens between the tyres and the bumpy roads.

Splendor is a bike that met the pollution control standards of 1990’s.

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 wheelbase 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 colours (Black, Candy Ruby Red,

Blaze Blue silver Metallic, Sierra Green Metallic and Hi Cranite Blue

Metallic). The Splendor conforms to the year 2000 Euro emission

norms.

HERO HONDA STREET SMART

Hero Honda Street Smart is a 4-stroke, 100cc bike, which delivers

great pick-up, and the bike is reasonably priced. The Street Smart

comes with trendy front shield, which makes it more sturdier safer and

smarter. The bike has Rotary gears and Auto-Clutch, which makes it

amazingly maneuverable. It has a storage box,

34

Page 35: AJIT HONDA

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. It’s 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 wheelbase 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).

HERO HONDA CBZ

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

156.8 CC engine 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

35

Page 36: AJIT HONDA

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 colours (Black, Tasmania Green, Tahitian

Blue, Candy Sparkling silver and Candy Blazing Red).

HERO HONDA PASSION

Engine 4-stroke, single cylinder air cooled OHC

36

Page 37: AJIT HONDA

Displacement 97.2ccMaximum Power 7.5 Ps at 8000 rpmGear Box 4 Speed constant meshClutch Multi-plate wet typeMax. Speed 85 kmphFrame 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 PR3.00 x 18 – 3/6 PR

Final Drive Roller ChainBattery 12 V- 2.5 AHIgnition Electronic CDI Starting Kick Starter Wheelbase 1235 mmGround clearance 159 mmLength 1980 mmWidth 720 mmHeight 1060 mmKerb weight 116 mmFuel Tank Capacity 12.8 litres (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. It’s a feast for

your eyes…

37

Page 38: AJIT HONDA

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’.

38

Page 39: AJIT HONDA

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.

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.

HERO HONDA AMBITION

39

Page 40: AJIT HONDA

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.

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.

HERO HONDA CD DAWN

40

Page 41: AJIT HONDA

Presenting CD Dawn, the true-value 4 strokes, 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

41

Page 42: AJIT HONDA

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:

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 more safer than the

1) 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-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

42

Page 43: AJIT HONDA

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 Honda’s 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.

7.PRICE

43

Page 44: AJIT HONDA

Price is one of the important elements of the marketing mix, but

lately, it has come to occupy the center-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.

44

Page 45: AJIT HONDA

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

Ambition ( Drum & Kick ) Prices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 43,857.00 48,512.00 Calcutta 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)

CityEx. Showroom Price

On Road Price

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

45

Page 46: AJIT HONDA

Ambition ( Disc & SelfStart ) Prices (in Rupees)

CityEx. Showroom Price

On Road Price

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 54,666.00 Mumbai 52,964.00 57,912.00 Pune 51,034.00 55,767.00

CBZ Prices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 51,192.09 56,579.71Calcutta 53,993.73 57,698.73Chennai 54,939.00 58,120.00 Delhi 53,340.74 55,811.74Mumbai 58,705 63,213Pune 51,799 56,657

SPLENDOR Prices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 40,948 45,331Calcutta 41,612 44,550Chennai 41,739 45,310Delhi 41,080 43,281Mumbai 41,831 45,763Pune 40,322 44,122

CD100 SS

46

Page 47: AJIT HONDA

Prices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 38,375.91 42,530.54Calcutta 39,003.26 41,800.26Chennai 39,932.00 42,950.00 Delhi 38,507.68 40,664.68Mumbai 39,709 42,797Pune 37,722 41,295

CD100 Prices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 36,896.88 40,915.80Calcutta 37,494.76 40,199.76Chennai 38420.00 41,410.00 Delhi 37,023.05 39,155.05Mumbai 38,992 42,027Pune 37,231 40,762

PASSION PLUSPrices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 41,898 46,403Calcutta 42,574 45,549Chennai 42,732 46,857Delhi 41,885 44,127Mumbai 43,816 47,920 Pune 42,232 46,198

PASSION PLUS DISCPrices (in Rupees)

47

Page 48: AJIT HONDA

CityEx. Showroom Price

On Road Price

Bangalore 44,494 49,237Calcutta 45,212 48,150Chennai 45,365 49,592Delhi 44,482 46,950Mumbai 46,541 50,882Pune 44,853 49,048

SPLENDOR+ DRUMPrices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 40,447 44,818Calcutta 41,111 46,500Chennai 41,223 45,321Delhi 40,579 42,788Mumbai 42,351 46,328Pune 40,822 44,666

SPLENDOR+ DISCPrices (in Rupees)

CityEx. Showroom Price

On Road Price

Bangalore 43,043 47,653Calcutta 43,749 49,200Chennai 43,856 48,001Delhi 43,175 45,311Mumbai 45,076 49,290Pune 43,444 47,516

CD DAWNPrices* (in Rupees)

City Ex. Showroom Price

On Road Price

48

Page 49: AJIT HONDA

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 35,147.00Pune 30,899.00 33,880.00

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

8.PLACE

49

Page 50: AJIT HONDA

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, 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.

50

Page 51: AJIT HONDA

Length of a channel

The number of intermediary channels is 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

51

Page 52: AJIT HONDA

they give them, the training and support they provided and the

activities and service that the firm requires from them in exchange.

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.

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

52

Page 53: AJIT HONDA

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

53

Page 54: AJIT HONDA

3. Situation of show room

4. Past record

5. Experience

9.PROMOTION

Promotion concerns the message the firm sends out to potential

consumers. It provides information and persuades people. It creates

awareness, stimulates demand, and differentiates the product and

influences public behaviour. Promotion won’t make a bad product that

54

Page 55: AJIT HONDA

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.

PROMOTIONAL TOOLS or PROMOTION MIX

1) PERSONAL SELLING:

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

expensive and time-consuming tool of promoting the product.

2) ADVERTISING:

It is defined as a paid non-personal communication with a target

(usually mass) market. It is cost effective and can reach a large

number of people. It can also be used for long term or short term

objectives.

There are various forms or mediums through which firms can

advertise.

(A) Broadcast Media

55

Page 56: AJIT HONDA

Television

Radio

Cinema

(B) Print Media

Newspapers

Magazines

Leaflets

(C)Outdoor Media

Posters and Billboards

3) PUBLIC RELATIONS AN PUBLLICITY :

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

organization’s behavior with respect to the society in which it

operates. They maybe regarded as good or bad and is reflected in

the company’s reputation and image.

4) SPONSORSHIP :

56

Page 57: AJIT HONDA

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.

5) 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.

Consumer’s sales promotion: These are sales promotions aimed at

the end customer.

6) 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

57

Page 58: AJIT HONDA

Direct response advertising: ‘Phone now’ or ‘fill in the coupon’ ads.

Home shopping of various types.

Mail order.

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

(A) Nature of product

(B) Overall marketing strategy

(C) Buyer readiness stage

(D) Product life cycle stage.

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

58

Page 59: AJIT HONDA

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

THE CUTOMERS & ALSO PROVIDE EASY MONTHLY INSTALMENT

SCHEME TO CUSTOMERS.

E. HERO HONDA GIVES HUGE COMMISSION TO ITS DEALER

10.S.W.O.T 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

59

Page 60: AJIT HONDA

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

60

Page 61: AJIT HONDA

11.LIMITATIONS

1. Incase of Primary data, sometimes it was difficult to contact or

meet the Professional, due to their busy work schedule.

2. Sometimes, Professionals are unable to furnish some of the

information due to confidentiality of the same.

3. Personally contacting the managers of the company involved

time and cost.

4. It was difficult to find information that exactly fitted the needs of

the project at hand in case of secondary data or information is

concerned.

5. Secondary data when collected was invaluable but due to

passage of time and with many dynamic changes taking place in

61

Page 62: AJIT HONDA

the markets, the information losses its value in the current

scenario.

6. Being a very sensitive issue, company official were reluctant to

give exact pricing policies followed by them.

7. This project report gives a bird’s view of the marketing strategies

adopted by the company. This project doesn’t give detailed and

deep insight of the marketing strategies. This project report

gives only an idea.

Company officials are secretive and hesitant about divulging any

information whatsoever amount spent on Advertisement and aspects

related to Research and Development.

11.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

62

Page 63: AJIT HONDA

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

company’s 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

company’s 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

63

Page 64: AJIT HONDA

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.

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 a

time high.

64

Page 65: AJIT HONDA

13.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

65

Page 66: AJIT HONDA

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.

14.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 2006

Web Sites

Specific Sites –

o www.herohonda.com

o www.indianinfoline.com

o www.premjis.com

66

Page 67: AJIT HONDA

o www.sirindia.com

Searching Sites –

o www.google.com

o www.indiatimes.com

o www.yahoo.com

o www.webcrawler.com

o www.askjeeves.com

SAMPLE QUESTIONNAIRE

Profession................. Age…………

1. What are the parameters that you would consider before buying a bike?

1) Cost....

2) Company....

3) Mileage....

4) Looks....

5) Service....

2. Do you have bike?

1.Yes… 2.No……….

67

Page 68: AJIT HONDA

3. Which company do you prefer?

1.Hero Honda 2.Bajaj 3.Tvs 4.Sujuki

4. In Hero Honda which bike do you like?

1.Hero Honda CD 100 2.Honda Sleek

3.Honda Splendor 4.Honda CBZ

5.Honda Passion 6.Honad Karizma

5. Do you satisfy with the service of Hero Honda?

1.Yes… 2.No………..

6. What do you think of Hero Honda as a company?

a) Trustworthy brand

b) Not so familiar with the company

c) Did not have good dealing with Hero Honda

68