Brand Loyalty HHonda

Introduction

Marketing:

Marketing is so basic that it cannot be considered as a separate function. It is

whole business seen from the point of view of its final results i.e., from the customer’s

point of view. Business is not determined by the produced by the customer.

___ Peter F.Drucker

Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating, offering and exchanging products of

value with others.

________ Philip Kotler

American Marketing Association defined marketing as “ The process of

planning and executing the conception, pricing, promotion and distribution of ideas,

goods and services to create exchange that satisfy individual and organizational

objectives.

Marketing Management:

According to Philip Kotler “Marketing management is the process of planning

and executing the conception, pricing, promotion distribution of goods, services and

ideas to create exchange with target groups that satisfy customers and organizational

objectives.

According to Paul Mazer “marketing is an ongoing process of discovering and

translating consumer needs and design into products and services, servicing the

consumer demands with help of Marketing Channel.

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BRAND

Definition:

Brands that consumers generally buy from the same manufacturer repeatedly

over time rather than buying from multiple suppliers within the category. It also refers

to the degree to which a consumer consistently purchases the same brand within a

product class.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed

through intention or behavior, to repurchase a brand continually. It occurs because the

consumer perceives that the brand offers the right product features, image, or level of

quality at the right price. Consumer behavior is habitual because habits are safe and

familiar. In order to create brand loyalty, advertisers must break consumer habits, help

them acquire new habits, and reinforce those habits by reminding consumers of the

value of their purchase and encourage them to continue purchasing those products in

the future.

Understanding the key constructs of trust, commitment and attitudinal brand

loyalty and their respective antecedents, together with the linkages between these

variables is critical if improvement in relationships in a business-to-business setting is

to occur. Trust and commitment are considered to be central constructs of relationship

marketing. Commitment influences the buyer’s choice of seller and trust is a key

driver in this process. Indeed, commitment and trust are critical to any discussion of

business relationships because they encourage exchange partners to work at

preserving the relationship and achieve mutual gains. It is claimed that commitment

and trust will produce efficiency, productivity and effectiveness, all of which are

essential for any long-term project. Once a relationship is established, a high level of

commitment and trust in the sales representative may impact on brand loyalty .

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Principles of Good Brand:

1. Be easy to pronounce.

2. Be easy to remember.

3. Be easy to recognize.

4. Be easy to translate into all languages in the markets where the brand

will be used.

5. Attract attention.

6. Suggest product benefits (e.g.: Easy-Off) or suggest usage (note the

tradeoff with strong trademark protection.)

7. Suggest the company or product image.

8. Distinguish the product's positioning relative to the competition.

9. Be attractive.

10. Stand out among a group of other brands.

Types of Brands:

A number of different types of brands are recognized. A "premium brand"

typically costs more than other products in the same category. These are sometimes

referred to as 'top-shelf' products. An "economy brand" is a brand targeted to a high

price elasticity market segment. They generally position themselves as offering all the

same benefits as a premium product, for an 'economic' price. A "fighting brand" is a

brand created specifically to counter a competitive threat. When a company's name is

used as a product brand name, this is referred to as corporate branding. When one

brand name is used for several related products, this is referred to as family branding.

When all a company's products are given different brand names, this is referred to as

individual branding. When a company uses the brand equity associated with an

existing brand name to introduce a new product or product line, this is referred to as

"brand extension."

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When large retailers buy products in bulk from manufacturers and put their

own brand name on them, this is called private branding, store brand, white labelling,

private label or own brand. Private brands can be differentiated from "manufacturers'

brands" (also referred to as "national brands"). When different brands work together

to market their products, this is referred to as "co-branding". When a company sells

the rights to use a brand name to another company for use on a non-competing

product or in another geographical area, this is referred to as "brand licensing."

Building Brand Loyalty:

Building brand loyalty can be much like taking care of a pet. It has less to do

with the brand you feed them, and more to do with the way you treat them. As long as

you continue feeding and loving your pet he will return your love by loving you. As a

company you will need both to provide the needed products to the consumers as well

as keep the customers happy.

Providing the product is not only about creating a product, think is in demand,

but it takes researching the market to find out what is in demand. If we have a

product, or you know what it is that you will be producing than researching the

market is still important. We must find out what is currently being offered in the

market you are entering, what needs that product is meeting, and what needs it has left

to meet.

By completing market research before releasing the product you will be able

to make and release a better product. Once we are ready to release the product we will

decide on a marketing strategy and how we are going to make your product well

known to the public. We can choose between advertising agencies, direct marketing,

and even public relations. All of these will bring attention to your product and

business; it is for you to decide what kind of attention you are looking for.

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After deciding how we will release our product, but before releasing the

product, we will want to prepare for any negatives or road blocks you might

encounter. One of the most important decisions you will need to make is how to

handle negative feedback about your product (positive feedback doesn't need as much

preparation).

One source of negative feedback always count on is going to be from the

competitors. One guy always wants to win, and winning in this case would be selling

more, or providing more service. To combat this negative feed back, and gain the

respect of your consumers, you will need to know your competitors product well.

We see this competitor negativity often in over the counter aches and pain

medication. One popular company is known to be the, "headache," medicine. This

company advertises that they can take away any type of headache including severe

migraines. Their competitor's then use their advertising against this company by

advertising that their pain medication will not only work on headaches, but on all

bodily aches. You will find similar competition when entering the market and it is

best to be prepared ahead of time.

Another source of negative feedback is negative feedback from your

consumers. You cannot always count on exactly what they are not going to like before

they use your product (or it would probably be best to fix it before putting it out in the

market) but you can prepare your company for how you will handle this negative

feedback.

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A customer wants a company who will listen to their complaints and learn

from them. They also want a company who is willing to fix their mistakes and make

things right with the customer. Learning to do this as a company could be the single

most important step you can take towards brand-loyalty. Often if products are similar

the consumer will make their choice based on price, but more often if products are

similar, the consumer will make their choice based on service.

A pet owner may set out food every day and it won't matter if it is chicken or

steak he is setting out, if he doesn't respect the pet he will never have the respect of

the pet. If a pet owner though lays out food every day and shows respect for the pet, it

still won't matter the flavor of food being laid out, but that owner will win the respect

of his pet and the pet will follow that owner not just because of the food he is fed.

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Conceptual Framework

In the conceptual framework of Figure 1, trust is hypothesized as a direct

antecedent of commitment, and commitment is viewed as an antecedent of attitudinal

brand loyalty. This conceptualization recognizes that the relationship between an

organization and its salespeople and their clients is critical in the business services

sector. Indeed, the relationship a business has with a consultant or service provider

can help insulate the brand from competitors and sometimes from a company’s own

mistakes. In this section, the key constructs in Figure 1 are defined a rationale for the

paths between the constructs is offered.

Trust

Trust is a key variable in the establishment of a relationship and is the main

antecedent to commitment. Trust is defined as “confidence in an exchange partner’s

reliability and integrity” Trust is also a component of social exchange literature and is

identified in the services marketing literature as important in creating successful

exchanges. Given the intangible nature of a service and the fact that a service is

consumed as it is purchased, it can be argued that a high degree of trust in the product

and/or supplier required encouraging purchase and repeating purchase. Trust is also

defined as the “perceived credibility and benevolence of a target of trust” More

generally; dimensions of trust include expertise, reliability and internationality.

Although not the focus on this research, antecedents of trust include vulnerability and

uncertainty.

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Trust in the sales person

Commitment to the sales person

Attitudnal Brand Loyalty

A Model of the Potential Antecedents of Attitudinal Brand Loyalty

Relationships that are characterized as high trust are highly valued by

exchange participants. Thus, exchange participants are more willing to commit to a

relationship if trust is present indeed, some organizations use trust as a risk-reduction

mechanism. That is, if they believe the supplier to be credible and able to perform

their roles effectively, and benevolent, that is, the supplier is interested in the

customer’s welfare, then the perceived risk of exchange tends to be lower .

Furthermore, a purchaser who experiences satisfaction with outcomes is more likely

to trust their supplier in the future. In contrast, an organization that perceives inequity

in the relationship is likely to become dissatisfied and may view the supplier as

exploitive. Finally, it can be argued that the more experience an organization has with

a supplier; the more likely they are to trust that supplier.

Commitment

Relationship commitment is defined in the literature as “an enduring desire to

maintain a valued relationship”. The concept of commitment is new to business-to-

business research; however, it has long been part of the social exchange literature.

Three elements of an organization can be the focus of commitment:

(1) The organization itself,

(2) The organization’s brand and

(3) The organization’s representatives.

Commitment towards the brand or product is a measure of brand loyalty. This

linking of commitment with loyalty has emerged as researchers realized that the

attitude consumers hold towards a brand on its own is not a particularly strong

determinant of behavior, and that commitment to repurchase the brand helps explain

the relationship between attitude and behavior. Commitment is an important

component of marketing relationships commitment captures the buyer’s desire to

maintain a relationship with a particular vendor and reflects the strength of

relationship the buyer has with the buyer’s representative. Relationship with the

consultant is more important than the relationship with the company as a measure of

commitment, as the consultant is viewed as the public face of the company.

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More generally, researchers have distinguished between trust in a vendor’s

representative and trust in the firm. As an extension of this view, it is argued that

commitment to the vendor’s representative contributes to building high levels of

brand loyalty. In representing the brand to the customer, the sales representative is in

a position to communicate a good deal of information about the product to the

customer and contribute significantly to the development of brand equity. However, it

is important to recognize that brand equity is based on more than simply information

about the brand. The brand equity construct also captures the positive mental

associations held by the consumer in relation to the brand.

A positive relationship between trust and commitment is predicted. Trust is a

determinant of relationship quality in that the level of honesty, believability and

integrity influence how the relationship with the service provider is perceived. The

perceived quality of the relationship then in turn influences the level of commitment

extended towards the service provider.

If the salesperson is perceived to be honest and reliable, then the outcome is a

high perception of quality in the relationship. Conversely, if there is little trust in the

salesperson then the relationship would be perceived as unsatisfactory and no or little

commitment to the salesperson would exist. When the perceived quality of the

relationship is high then there is likely to be high levels of commitment to continuing

the relationship. Hence, high levels of trust are likely to lead to high levels of

commitment to the relationship. Based on this discussion, the following relationship is

expected.

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Attitudinal Brand Loyalty

Brand loyalty has been defined in the literature as a repeat purchase that is a

result of a preference, attitude or market share. These differences in view are reflected

in the behavior a list or cognitive schools of thought. In addition, more recent research

has introduced the affective component as an explicit element of brand loyalty, thus

making brand loyalty tri-partite construct containing affective, cognitive and

behavioral aspects. These three elements can be summarized as consisting of two key

dimensions:

1) Attitudinal

2) Behavioral loyalty.

Attitude captures the affective and cognitive aspects of brand loyalty, such as

brand preference and commitment. In contrast, behavioral brand loyalty is reflected in

the observed repurchase of a brand from a number of available brands A positive

relationship between commitment and brand loyalty is expected. Commitment to the

salesperson is generally conceptualized as affective commitment or a psychological

attachment.




quality at the right price. Consumer behavior is habitual because habits are safe and

familiar. In order to create brand loyalty, advertisers must break consumer habits, help

them acquire new habits, and reinforce those habits by reminding consumers of the

value of their purchase and encourage them to continue purchasing those products in

the future.

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Loyalty

According to Philip Kotler, defines four patterns of behavior: They are

Hard Core Loyals - who buy the brand all the time

Soft Core Loyals - loyal to two or three brands

Shifting Loyals - moving from one brand to another

Switchers - with no loyalty

Brand loyalty refers to the inclination of a consumer to purchase a brand again

and is usually measured in terms of repeat purchase. Consumers are said to be

relatively loyal if they purchase the brand more frequently than a competitor’s. There

are several layers of loyalty however; total loyalty to a brand is probably

unachievable.




quality at the right price.

Consumer behavior is habitual because habits are safe and familiar. In order

to create brand loyalty, advertisers must break consumer habits, help them acquire

new habits, and reinforce those habits by reminding consumers of the value of their

purchase and encourage them to continue purchasing those products in the future.

The image surrounding a company's brand is the principal source of its

competitive advantage and is therefore a valuable strategic asset. Unfortunately, many

companies are not adept at disseminating a strong, clear message that not only

distinguishes their brand from the competitors', but distinguishes it in a memorable

and positive manner.

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The challenge for all brands is to avoid the pitfalls of portraying a muddled or

negative image, and instead, create a broad brand vision or identity that recognizes a

brand as something greater than a set of attributes that can be imitated or surpassed. In

fact, a company should view its brand to be not just a product or service, but as an

overall brand image that defines a company’s philosophies.

A brand needs more than identity; it needs a personality. Just like a person

without attention-grabbing characteristics, a brand with no personality can easily be

passed right over. A strong symbol or company logo can also help to generate brand

loyalty by making it quickly identifiable.

From the design of a new product to the extension of a mature brand, effective

marketing strategies depend on a thorough understanding of the motivation, learning,

memory, and decision processes that influence what consumers buy Theories of

consumer behavior have been repeatedly linked to managerial decisions involving

development and launching of new products, segmentation, timing of market entry,

and brand management.

Subsequently, the issue of brand loyalty has been examined at great length.

Branding is by far one of the most important factors influencing an item's success or

failure in the marketplace, and can have a dramatic impact on how the "company

behind the brand" is perceived by the buying public. In other words, the brand is not

just a representation of a company's product; it is a symbol of the company itself, and

that is where the core of brand loyalty lies.

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Three reasons for Brand Loyalty:

Higher sales volume : Through reducing customer loss.

Premium pricing ability: As loyal consumers are less sensitive to price changes,

generally, they are willing to pay more for their preferred brand.

Lower costs for advertising, marketing and distribution: Brand loyalists are

willing to search for their favorite brand and are less sensitive to competitive

promotions .

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Branding approaches :

Company name :

Often, especially in the industrial sector, it is just the company's name which is

promoted (leading to one of the most powerful statements of "branding"; the saying,

before the company's downgrading, "No one ever got fired for buying IBM").

In this case a very strong brand name (or company name) is made the vehicle

for a range of products (for example, Mercedes-Benz or Black & Decker) or even a

range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or Cadbury

Fingers in the United States).

Individual branding

Each brand has a separate name (such as Seven-Up or Nivea Sun

(Beiersdorf)), which may even compete against other brands from the same company

(for example, Persil, Omo, Surf and Lynx are all owned by Unilever).

Attitude branding

Attitude branding is the choice to represent a larger feeling, which is not

necessarily connected with the product or consumption of the product at all.

Marketing labeled as attitude branding include that of Nike, Starbucks, The Body

Shop, Safeway, and Apple Computer.

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"No-brand" branding

Recently a number of companies have successfully pursued "No-Brand"

strategies, examples include the Japanese company Muji, which means "No label".

Although there is a distinct Muji brand, Muji products are not branded. This no-brand

strategy means that little is spent on advertisement or classical marketing and Muji's

success is attributed to the word-of-mouth, a simple shopping experience and the anti-

brand movement. Another brand which is thought to follow a no-brand strategy is

Derived brands

In this case the supplier of a key component, used by a number of suppliers of

the end-product, may wish to guarantee its own position by promoting that component

as a brand in its own right. The most frequently quoted example is Intel, which

secures its position in the PC market with the slogan "Intel Inside".

Brand extension

The existing strong brand name can be used as a vehicle for new or modified

products; for example, many fashion and designer companies extended brands into

fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses,

furniture, hotels, etc.

There is a difference between brand extension and line extension. When Coca-

Cola launched "Diet Coke" and "Cherry Coke" they stayed within the originating

product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did

likewise extending its strong lines (such as Fairy Soap) into neighboring products

(Fairy Liquid and Fairy Automatic) within the same category, dish washing

detergents.

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Multi-brands

Alternatively, in a market that is fragmented amongst a number of brands a

supplier can choose deliberately to launch totally new brands in apparent competition

with its own existing strong brand (and often with identical product characteristics);

simply to soak up some of the share of the market which will in any case go to minor

brands. In its most extreme manifestation, a supplier pioneering a new market which

it believes will be particularly attractive may choose immediately to launch a second

brand in competition with its first, in order to pre-empt others entering the market.

Individual brand names naturally allow greater flexibility by permitting a

variety of different products, of differing quality, to be sold without confusing the

consumer's perception of what business the company is in or diluting higher quality

products.

Cannibalization is a particular problem of a "multibrand" approach, in which

the new brand takes business away from an established one which the organization

also owns. This may be acceptable (indeed to be expected) if there is a net gain

overall. Alternatively, it may be the price the organization is willing to pay for

shifting its position in the market; the new product being one stage in this process.

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Own brands and generics

With the emergence of strong retailers the "own brand”, a retailer's own

branded product (or service), also emerged as a major factor in the marketplace.

Where the retailer has a particularly strong identity (such as Marks & Spencer in the

UK clothing sector) this "own brand" may be able to compete against even the

strongest brand leaders, and may outperform those products that are not otherwise

strongly branded.

Concerns were raised that such "own brands" might displace all other brands

(as they have done in Marks & Spencer outlets), but the evidence is that — at least in

supermarkets and department stores — consumers generally expect to see on display

something over 50 percent (and preferably over 60 percent) of brands other than those

of the retailer. Indeed, even the strongest own brands in the UK rarely achieve better

than third place in the overall market.

This means that strong independent brands (such as Kellogg's and Heinz),

which have maintained their marketing investments, are likely to continue their strong

performance. More than 50 per cent of UK FMCG brand leaders have held their

position for more than two decades, although it is arguable that those which have

switched their budgets to "buy space" in the retailers may be more exposed.

The strength of the retailers has, perhaps, been seen more in the pressure they

have been able to exert on the owners of even the strongest brands (and in particular

on the owners of the weaker third and fourth brands). Relationship marketing has

been applied most often to meet the wishes of such large customers (and indeed has

been demanded by them as recognition of their buying power). Some of the more

active marketers have now also switched to 'category marketing' - in which they take

into account all the needs of a retailer in a product category rather than more narrowly

focusing on their own brand.

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At the same time, probably as an outgrowth of consumerism, "generic" (that

is, effectively unbranded) goods have also emerged. These made a positive virtue of

saving the cost of almost all marketing activities; emphasizing the lack of advertising

and, especially, the plain packaging (which was, however, often simply a vehicle for a

different kind of image). It would appear that the penetration of such generic products

peaked in the early 1980s, and most consumers still appear to be looking for the

qualities that the conventional brand provides.

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Objectives of the Study:

To know the Customer’s perception towards Hero Honda Bikes

To know the customer’s brand preference towards Hero Honda Bikes

To study the Brand Equity of Hero Honda Bikes

To know the how long customers prefer the Brand of Hero Honda Bikes

To estimate the market share and examine the brand loyalty of HERO HONDA

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RESEARCH METHODOLOGY:

To study the objectives in detail the following research methodology is

adopted.

DATA COLLECTION:

The data for project is collected from using sources of both Primary Data and

Secondary Data.

PRIMARY DATA:

Personal interview method is used to collect primary data. The personal

interviews are done for obtaining primary data from the customers with a set of

structured questionnaire.

Questionnaire to customers which are distributed to the customers of tri cities

is done in order to know their opinions regarding Hero Honda Bikes.

SECONDARY DATA:

Secondary data is collected from internet sources, organizational manual, and

organizational website.

DATA ANALYSIS:

The data collected through questionnaire was tabulated and analyzed by

percentage, and corresponding graphs were made.

SAMPLING METHOD:

Sampling is the process of selecting an observation from the population and

knowing the characteristics of entire population

SAMPLING SIZE:

The selected sample size is 100.

GEOGRAHICAL AREA COVERED:

The tri-cities of Warangal District, i.e. Warangal, Hanamkonda, Kazipet.

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Limitations:

1) Recommendations of the study are only personally opinion. Hence

judgment may not be considered as ultimate standard solutions.

2) Information is collected from ultimate customers of Hero Honda Bikes by

serving a well framed questionnaire but shortage of time only 100 owners of

different sub brands of Hero Honda Bikes could be questioned.

3) Due to time constraint a comprehensive and meticulous study were not

possible.

4) Though owners of Hero Honda Bikes have catered through the globe due to

the investigation limited time and resources only the Warangal city has been

chosen as the area of the study.

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ABOUT THE COMPANY

Hero Honda has a reputation of being the most fuel-efficient and the

largest selling Indian motorcycle. Its commitment of providing the

customer with excellence is self-evident. A rich background of producing

high value products at a reasonable price led the world's largest

manufacturer of motorcycles to collaborate with the world's largest

bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of

Japan and the Hero Group that resulted in the setting up of Hero Honda

Motors Ltd. A relationship so harmonious that Hero Honda has managed

to achieve indigenisation of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda

establish itself as an intelligent purchase. Its unique features like fuel

conservation, safety riding courses and mobile workshops helped the

group reach in the interiors of the country.

Finance services helped facilitate purchase, as did an efficient dealer

network across the country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned

its attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades,

including the National Productivity Council's Award ( 1990-91), and the

Economic Times - Harvard Business School Association of India Award,

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against 200 contenders.

VISION OF THE COMPANY

The Legend of Hero Honda

What started out as a Joint Venture between Hero Group, the world’s

largest bicycle manufacturers and the Honda Motor Company of Japan,

has today become the World’s single largest two wheeler Company.

Coming into existence on January 19, 1984, Hero Motors Limited gave

India nothing less than a revolution on two-wheels, made even more

famous by the ‘Fill it – Shut it – Forget it ‘ campaign. Driven by the trust

of over 5 million customers, the Hero Honda product range today

commands a market share of 48% making it a veritable giant in the

industry. Add to that technological excellence, an expensive dealer

network, and reliable after sales service, and you have one of the most

customer-friendly companies.

This is proved by the company’s sales over the years:

1985-86 43,000 units

1989-90 96,200 units

1998-99 5,30,600 units

1999-00 7,61,210 units

2000-01 10,29,555 units

2001-02 14,25,195 units

2002-03 17,78.392 units

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Customer satisfaction, a high quality product, the strength of Honda

technology and the Hero group’s dynamism have developed HTML scale

new frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing

Director, “We will continue to make every effort required for the

development of the motorcycle industry, through new product

development, technological innovation, investment in equipment and

facilities and through efficient management”.

1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984

Company incorporated.

Technical collaboration signed.

Foundation stone lay.

1983 - shareholders agreements signed.

1985

First motorcycle (Model CD 100) produced.

1987

Engine plant started.

1,00,000th Motorcycle produced.

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1989

Sleek model introduced.

1991

5,00,000th motorcycle produced.

CD-SS model introduced.

Economic times – Harward business school award for excellent Governance to

Hero Honda Motors Ltd.

1993

Hero group sponsors Hero cup five nations cricket tournament

1994

Splendor model introduced.

1995

National Award for outstanding contribution to the development of

Indian small scale industry (NSIC Award presented by President of

India)

The analyst award 1995 presented to Hero Honda Motors Ltd. on

being ranked 9th amongst the most investor rewarding companies in

India.

1996

1000 motorcycle per day production started.

1997


Street model introduced.

Hero sponsored 6th women world cup cricket tournament.

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1998


1st Hero Honda Master golf championship held at Delhi.

1999


CBZ model introduced.

7th World Cup Cricket tournament sponsored at England.

Most admired business Baron CEO award conferred upon the

Chairman Brij Mohan Lal Munjal.

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2001

Passion and Joy motorcycle launched.

One million motorcycles produced in one single year.

50,00,000th bike produced.

Winner of the review-2000-Asia’s leading companies’ award

2000.

National productivity award for the best performance in

automobile and tractors.

Sir Jahangir Ghandy medal for industrial peace awarded to Brij

Mohal Lal by XLRI Jamshedpur.

2002

Declared “company of the year” by economic times business

award.

Chairman Brij Mohan Lal awarded the “entrepreneur of the

year” award by Business standard.

Ambition launched.

2003

Declared “company of the year” by economic times business

award for the second time.

Karizma the sports segment bike launched.

This all says about the golden past of the company and the company is

going on to the path of success.

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1.6 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market

share

HERO HONDA Motorbikes 75% market share

BAJAJ AUTO Scooter+Motorbikes+ Scooterate 25% market share

LMLScooter+Motorbike+Scootrate 30% market share

TVSMotorbikes+Scootrate 15% market share

YAMAHA Motorbikes 15% market share

ENFIELD Motorbikes 10% market share

According to the recent results company (Hero Honda) registered a sales

increased by 24.5% over the past years. Same month TVS also registered

increase of 45% while the other companies are not enjoying quiet good

increase in sales. While the whole industry registered an increase of about

17% only. So in present scenario the Hero Honda comes as the leader of

whole automobile segment while there is immense competition in

industry to get the highest market share.

BRAND AMBASSADOR

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The company signed the Indian skipper of cricket team Saurav Ganguly,

Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as

its brand ambassadors joining the add campaign together to promote

“Ambition”. All of these celebrities are the member of Indian cricket

team and very much popular in younger generation. In the last year with

the launch of its new premium bike Karizama Hero Honda signed its

new brand ambassador who is a cine star and is also very popular. He is

Hritik Roshan.

Service Your Bike

Hero Honda has always taken a lead in terms of defining service

standards in two wheeler industry with an aim to provide "Total

Customer Satisfaction" for their valuable customers across the country

and also internationally. We are constantly endeavoring to improve the

quality of our service facilities at our Dealerships. The first and foremost

step to achieve this was creating Automated Workshops at our

Authorized Dealerships and Service Centers across the country.

Automated Workshops

Hero Honda has the largest chain of Automated Workshops providing

service to their valuable customers by using latest service technology.

Automated Workshops have standard layout, hydro electric motor cycle

lifts, dust free engine rooms and use pneumatic tools and equipment to

ensure quality repair in customers motorcycle. The workshop

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environment and usage of pneumatic tools increases mechanics efficiency

and their motivation to provide quality service. The layouts have been

standardized to ensure that there is a transparency of service. The

customers can view their motorcycle repair while sitting comfortably

watching TV or relaxing in the customer lounge. Workshop Automation

has become a mandatory service standard for all Hero Honda Dealers and

Service Centers.

Training

The regular Technical Training Programmes for Dealers Workshop staff

to keep them updated and refreshed about the latest price technology,

product technical details as well as service and repair procedures to

handle customers motorcycle with utmost care as well as to provide them

the service quality of highest order is a focus area at Hero Honda. Hero

Honda has six (06) training centers across the country. There are 05 zonal

training centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take

care of technical training requirements of dealers in each zone as well as

local technicians. There is a National Training Center at Dharuhera to

take care of all advanced level technical programmes for our dealers staff

and our in house service engineers. Hero Honda keeps an organizing

Dealers Mechanics Contest at Zonal Level and National Level to develop

competitive spirit among mechanics as well as in the process to update

their skills and product knowledge.

Customer Service

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Hero Honda keeps on taking always-new initiatives to maintain its

leadership on service as well as enhance customer satisfaction level on an

ongoing basis. Some of the new initiatives related to customer service are

as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers

· Pre Paid Reply Cards

· Automated Mobile Service Workshops

· Mega Millennium Camps

· On the Job Training Programmes

· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our

dealers to keep our customers always in our mind on top priority.

Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero Honda is also launching very soon a novel concept and a very major

initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of

Hero Honda's motorcycle delivery process at the showroom.

Customers shall be educated on Safe Riding techniques through

various audio visual aids. Safety Instructors shall be imparting riding

skills as well as education to the customers. Dealers shall also conduct

a major programme in their respective towns with the association of

local traffic police on a regular basis on safety education and correct

riding techniques.

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CBZ

The Hero Honda CBZ (pronounced CeeBeeZee) is the latest offering from Hero Honda for the Indian market. With a 156cc engine, the company claims that the bike has a top speed of 100kph within 5.6 seconds.

Though the bike has the largest displacement engine, its top speed doesn’t match up to many of its competitors. In all other respects, it is a bit too early to decide whether the CBZ will sell in the same numbers as the Splendor. Though the initial market response has been good, only time will be the final arbiter.

Technical Specifications

Engine : Four-stroke/petrol

Transmission : Four-speed

Engine Displacement : 156cc

Tachometer : Yes

Max Power : 12.8b hp@8000 rpm

Wheel base: 1,330mm

Ground Clearance: 160mm

Ignition : Electronic CDI

Dry Weight: 140kg

Fuel tank Capacity: 12.5itres

Battery: 12V

Max Torque: 1.26kgm@6500rpm

Bore x stroke: 63.5mmx49.5mm

Max Speed: 120kph

Front Tyre size : 3.25x19"

Rear Tyre size: 3.50x19"

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Splendor

A combination of style and economy makes the Splendor is a bike worth

investing in. The latest from the Hero Honda factory offers both

performance and looks. It has good looks, excellent handling

characteristics and a smooth drive over any type of terrain, thanks to the

changes in the suspension at front and near as well as the new frame

design. All these features contribute to the Splendor being one of the best

selling four stroke-two-wheelers in India. It also meets all the current

pollution standards. A healthier beat, springy ride and overall low

maintenance has aided in the record-breaking sales of this bike.




Engine Displacement : 97.2cc

Tachometer : No

Max Power : 7.2b hp@8500 rpm

Wheel base : 1,230mm

Ground Clearance : 159mm

Ignition : Electronic

Dry Weight : 100.3kg

Fuel tank Capacity : 10.5itres

Battery : 12V

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F/R suspension : Tel Hydraulic fork

R/R suspension : Swing arm and Hydraulic damper

Max Speed : 90kph


Rear Tyre size : 2.75x18"

St

re

et

10

0

The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The Hero Honda Street 100 is equipped with unique features like city-clutch, which is designed specially for city driving. It has rotary gears, which allow the rider to flip directly from the fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-and-go’ traffic. A self-starter button comes as an option. The Street can be purchased with a variety of seat layouts and has options like a water pump, spray can, larger luggage tray, etc. Its major competitor is the much cheaper K4 from Kinetic. Major plus points that justify the higher price are the centrifugal clutch and the rotary gears. However, the liberal use of plastics negates much of the ‘feel good’ factor and has hindered sales to a large extent.





Tachometer : N/A

Max Power : N/A




Dry Weight : 101kg

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Fuel tank Capacity : 11litres

Battery : 12V

F/R suspension : Telescopic

R/R suspension : Swing arm and Hydraulic dampers

Max Speed : N/A



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CD

100SS

The CD100SS is designed for those who live life in the fast lane, rough and tough, for

those who would love to take a bike on the stumbling village roads. It shares almost

all components with the CD100, except for the additional reinforcement. With larger,

reinforced shock absorbers, wider tyres, heavier body weight and engine guard, the

Hero Honda CD 100 SS weights slightly more, resulting in some cut down in the fuel

economy it offers. Minor problems of the CD100 have been rectified in the SS model.

If you wish to ride into the hinterland, this is the bike for you.





Tachometer : No

Max Power : 7.0bhp@8000rpm




Dry Weight : 103kg

Fuel tank Capacity : 10.1litres

Battery : 12V

F/R suspension : Tel Hydraulic fork

R/R suspension : Swing arm and Hydraulic damper

Max Speed : 85kph

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Features :

Engine 4-stroke, single cyclinder, air-cooled

Displacement 97.2cc

Clutch type Manual

Clutch Primary -

Clutch Secondary Multi-plate wet

Transmission 4-speed constant mesh

Final Drive Roller chain

Ignition Electronic

Starting Kick starter

Frame T-Bone type

Suspension (Front) Telescopic hydraulic fork

Suspension (Rear) Swing-arm with hydraulic dampers

Dimensions (LxWxH) 1885x770x1060mm

Wheel Base 1210mm

Ground Clearance 135 mm

Dry Weight 95 kg

Tyres:Front/Rear 2.50"x18"/2.75"x18"

Max.Power 7.0 PS @ 8000 rpm

Max.Speed 85 Kmph

Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)

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A

m

bit

io

n

13

5

Features :

Engine 4 stroke

Displacement 133 cc

Maximum Power 11 BHP / 11.15 PS @ 8000 rpm

Maximum Speed 100 KMPH

Gears 5

Frame Tubular single cradle, diamond type

Tyres: (Front) 2.75 X 18

Tyres: (Rear) 3.00 X 18

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Headlight Trapezoidal 35 / 35 W

Fuel Efficiency 55 KMPL

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KARIZAMA

If you look at the 223c mill of the Karizma, you can make out the

familiar streak that runs through the engines on the CBZ and the

Ambition. No prizes on this count as to the reason but the 223cc

Karizma engine represents - for the moment - the maximum capacity

this modular design theme can be taken to. The crankcase is of virtually

the same size though the covers do have some detail differences and the

engine mounts are the same as in the other two bikes and completing the

picture are the scaled-up barrel (with an additional fin) and head.

The single overhead cam motor features slightly undersquare cylinder

dimensions with a 65.5mm bore and a 66.2mm stroke to give a 223cc

swept volume. Hero Honda has designed in the latest convex-type

combustion chamber (compression ratio being 9.0 : 1) for silent running

and good power delivery while also giving it the latest Keihin VE 3EA

constant vacuum type carburettor which also packs in the CCVI switch.

The CCVI term stands for carb-controlled variable ignition timing

which as it suggests actuates - via throttle position - one of two ignition

maps, for low and high speed operation. This was one area which

disappointed appreciably in the CBZ wherein the engine sounded and

felt harsh as one went past the middle range but here this detail has

eliminated such a glitch completely. Just for the record, the 223cc

engine gets the latest version of Honda's AMI (advanced microprocessor

ignition) system which incorporates a three tier, multi-stage digital

ignition system.

The all aluminium alloy engine (with pressed-in steel liner) features an

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automatic cam chain tensioner, an air cut off valve (to prevent

afterburning in the exhaust muffler) and like on the CBZ and Ambition,

an air injection valve to keep tail pipe emissions in check. With all this

and the extra cubic capacity, the Karizma engine develops 16.76bhp at

7000rpm and 18.35Nm of torque at 6000rpm. This is about 2bhp and

5Nm more than what the Pulsar 180 makes but the reasoning is that the

engine had to be stressfree and this fact holds true when out on the

roads.

Transmission is via a five-speed gearbox which has had its final drive

ratios revised from those in the CBZ. A stronger multi-plate clutch is

used to take care of the enhanced power and torque figures. This time

round Hero Honda has not faulted and equipped the engine withan

electric starter even though the kick starter to be actuated requires the

front right footrest to be folded out of the way.

ENGINE:

TRANSMISSION:

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56

1826

0

10

20

30

40

50

60

Usa

ge

Students Employees Businessmen

Category

Occupation

Students

Employees

Business men

DATA ANALYSIS

Table 1) Occupation of respondents

S.No. Occupation No. of Respondent % of Respondent

1 Students 56 56

2 Employees 18 18

3 Business men 26 26

Total No. of Respondent 100 100

From the above table it is clear that most of the students are choosing the L.G

bikes.

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0

10

2030

4050

Per

cen

tag

e

Category

Advertisment

Electronic Media

Road Shows

Print Media

Friends

TABLE 2) Mode of Channels

S.No Mode of Channel No. of Respondent % of Respondent

1 Electronic Media 48 48

2 Road Shows 02 02

3 Print Media 28 28

4 Friends 32 32


From the above table it is interpreted that most of the respondents have awareness

about L.G Bikes through Electronic Media (48%).

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010

2030

4050

60

Percen

tag

e

Type

Brand

Brand Image

Quality Service

Economic Price

Table 3) Brand Prefer Criteria

S.No No.of Respondent % of Respondent

1 Brand Image 28 28

2 Quality Service 13 13

3 Economic Price 59 59

Total No.of Respondent 100 100

From the above table it is interpreted that most of the respondent to prefer

for Economic Price (59%) to choose HERO HONDA brand.

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01020304050607080

Per

cen

tage

Yes No

Performance

Yes

No

Table 4) Level of Performance

S.No. Choosing Factor No. of Respondent % of Respondent

1 Yes 80 80

2 No 20 20

Total No.of Respondent 100 100

From the above table it is interpreted that Performance of Hero Honda Bikes,

have more satisfaction (80%)

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010203040506070

Colleagues

Friends

Family Mem

Others

Table 5) Purchase Influence Factors

S.No. Influence Factors No.of Respondent % of Respondent

1 Colleagues 05 05

2 Friends 69 69

3 Family Members 16 16

4 Others 10 10


From the above table most influence factor is Friends (69%), to purchase L.G

Bikes.

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0

20

40

60

80

100

Yes No

Existing Features

Yes

No

Table 6) Opinion about Bike Features

S.No Opinion No. of Respondent % of Respondent

1 Yes 85 85

2 No 15 15


From the above table it is interpreted that bike Features Yes (85%) is the

Highest.

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05

10152025

303540

45

KnowledgeHelp

Friendly

Attractiv

e

Knowledge

Help

Friendly

Attractive

Table 7) Service Quality

S.No Service No .of Respondent % of Respondnet

1 Knowledge 45 45

2 Help 29 29

3 Friendly 09 09

4 Attractive 17 17


From the above table it is interpreted that service of the bikes is knowledge is

highest.

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0

10

20

30

40

50

60

70

Ad.Attractive

Attractiveto Purchase

WindowDisplay

Ad. Attractive

Attractive to Purchase

Window Display

Table 8) Opinion on Promotional Activities

S.No. Mode of Promotion No. of Respondent % of Respondent

1 Ad. Attractive 63 63

2 Attractive to Purchase 32 32

3 Window Display 05 05


From the above table it is interpreted that Add. Attractive is the most

Promotional Activity to purchase the HERO HONDA bike.

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0

10

20

30

40

50

60

70

Accessible Outlets Pleasing

Accessible

Outlets

Pleasing

Table 9) Opinion on Store Environment

S.No Environment No. of Respondent % of Respondent

1 Accessible 67 67

2 Outlets 21 21

3 Pleasing 12 12


From the above table it is interpreted that HERO HONDA stores have easy to

accessible the bikes

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0

10

20

3040

50

60

70

Style

Feature

Fashiona

ble

Style

Feature

Fashionable

Table 10) Opinion on styles of Brand

S. No. Variety’s Available No. of Respondent % of Respondent

1 Style 10 10

2 Feature 63 63

3 Fashionable 27 27


From the above table it is interpreted that most of the sales depend on the bike

features.

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Conclusions:

1. Most of the respondents were aware by the friends (69%) and Family

members (16%) Colleagues (5%), Others (10%) also helped in providing

information to the respondents

2. Advertisement in Electronic media (48%) were much affective and Print

Media (28%) was also a major advertising media.

3. Many factors like family members, advertising was responsible for influencing

the customers to buy Hero Honda Bikes

4. Purchasing of Hero Honda Bikes are highly Students for their usage of

features.

5. Factors effecting on buying decision of a customers are Brand name, Price,

Design, warranty, services are helping more in purchasing of the Hero Honda

Bikes.

6. Most of the consumers are not aware of the new models after releasing.

7. Middle class and high income customers are buying the Hero Honda Bikes.

8. Store environment of Hero Honda Bikes is easily accessible to buy.

9. Promotional activities are attractive.

10. Providing the styles of brand are distinctive features

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Suggestions:

In the light of the analysis and findings the researcher would like to place

before the company the following suggestions and recommendations.

1. Since most of the samples are not aware of HERO HONDA New Models, the

company should take measures to develop the awareness of the New Models.

2. Most of the sales of bikes depend upon the Sales people’s suggestion.

3. HERO HONDA Company Should may provide the LIVE DEMO for the

bikes. It will create the more sales.

4. In the place of dummy bikes firm may kept the original bikes. To give the

demonstration. And customer can easily identify the features of the Bike.

5. Increase the supply chain of distribution of the bikes.

6. HERO HONDA Company may open the shop with all the models are

available in the store. It may have to create the awareness of the bikes we are

offering to the customers.

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Brand Loyalty HHonda

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