Hero Honda Report

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Declaration I, the undersigned Miss Purvi G. Meghani hereby declare that the project work presented in this report is my own contribution and had been carried out under the supervision & guidance of Professor Smita c. Vyas of J. H. Bhalodiya Women’s College, Rajkot. This work has not been previously submitted to any other University for any examination. Date: Place: Rajkot Purvi G. Meghani

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Transcript of Hero Honda Report

Page 1: Hero Honda Report


I, the undersigned Miss Purvi G. Meghani hereby declare that the

project work presented in this report is my own contribution and had been

carried out under the supervision & guidance of Professor Smita c. Vyas

of J. H. Bhalodiya Women’s College, Rajkot.

This work has not been previously submitted to any other

University for any examination.


Place: Rajkot

Purvi G. Meghani

Page 2: Hero Honda Report


As we know business management as a science has developed very

fast during last four decades. Previously it was a discipline subject but

now it has grown into a science of managerial decision-making. It is

phrase to build a reputation and easy to loose it companies that focus

incurred become behind to systematic changes in markets. Competition,

distribution and media technology are observing outside. There is a

fundamental truth in which that ‘people are an important asset of

organization line cash in put into recurring accounts human resources can

appreciate in value’. The management process made up with the help of

four steps.





Beside the study of management on personal, financial and

marketing, there is need for detail study for particular management putting

forward topic marketing management with specialization. Marketing mix

is a much complex and wide subject. Lots of work can be done for a small


Page 3: Hero Honda Report


I feel pleasure to submit this report, which includes the

practical aspect of study. I am very happy to express my deepest gratitude

to all the persons who spared their valuable time and helped me a lot in

preparation of this report.

I am also thankful to Executives of Perfect Auto Service,

Rajkot for granting me permission for my practical training. I am very

much thankful to Mr. Rajubhai Sampat, the Sales Officer, for his valuable

guidance, co-operation and sparing his valuable time also.

Purvi G. Meghani.

Page 4: Hero Honda Report



1 General Information

2 Marketing Mix

Product Mix

Price Mix

Promotion Mix

Place Mix

3 Research Methodology

4 Limitation Of Study

5 Conclusion

6 Suggestions

7 Bibliography

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History, Growth and Development

of Automobile Industry

History, Growth and Development

of Hero Honda Limited

History, Growth and Development

of Perfect Auto Service

2 Project at a Glance

3 Changing Role Of Marketing

4 Present Marketing Scenario

Page 6: Hero Honda Report


History, Growth and Development of Automobile Industry

The process of the Automobile Industry is an index of engineering

skill, though the history of the industry can trained back to the discovery

of the wheel, the real revolution in mechanical development is only 100


The real development of Automobile industry in the World stared in

the late 18th century. But the development of Automobile Industries in

India has round phases. First step was taking in importing cars. The first

car was being imported in 1989. The second step was in late 20’ s of the

present century when plant in 1928 to reassemble trucks and cars. In 1930-

31 Ford Motor Company India Limited established its assembly unit in

Mumbai, Calcutta and chennai. These companies imported components

and assemble there in India. At this stage the pioneer engineer Mr.

Vivverwraya pleaded for support to the indigenous of the cars, the British

Government, denied.

The third phase started with successful culmination of Veichand

Hirachand’s efforts after world war in collaboration with Chryster in

setting up Premier Automobiles in Mumbai. Earlier in 1942, Riria had

established Hindustan Motors in British Corporations.

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In 1980 the total production of cars with at least one or two locally

made components were at little over 2100. Today almost all auto parts and

components required by the main manufacturers about 60% are made by

local authority, 75% of which are in the small-scale sector with steady

availability of raw material like iron, steel, copper, aluminum, zinc, etc.

The process of indegnisation has been started with 1954 and 1968,

this was for and final when India exported cars and jeeps to 12 countries.


A number of new project most of them with foreign collaboration

are being developed in the automobile industry.

Maruti Udhyog Limited, a public sector undertaking has started

production of small cars and pick up vans. The company entered into

collaboration with Suzuki Motors Limited, Japan in 1985.

Similarly the two producers of cars PAC and Hindustan Motors

have collaboration with Holy and Vascrehail respectively.

Beside many firms have entered into foreign collaboration for

production of scooters and motorcycles. LML a local company with the

Vespa Company and Hero Cycle Limited made collaboration with Honda

Company of Japan.

Page 8: Hero Honda Report

History, Growth and Development of Hero Honda Limited

When any person in India moves from one place to another place,

he must be thinking of Bikes who make easy to move and the Bike he

think non other than Hero Honda. Today every person with desire of Bike

always thinks for the Hero Honda. It shows the prosperity of Hero Honda

Limited. To know about it we have need to go in past.

It was the 50’s and 60’s when a unit engaged to produce cycles with

name of Hero Cycles Limited. Till 70’s and 80’s they produced cycles, but

in 1984 they made collaboration with Honda Company of Japan and

started producing motorcycles. In 1985 they introduced their first Bike in

market since then they have made very significant progress in producing

Bikes and come out as giants of Automobile in manufacturing


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Historical Prospect of Hero Honda Limited

1984 Establishment of Hero Honda Limited (After

collaboration between India’s Hero Cycles Limited

and Japan’s Honda Company)

1985 Introduced a first bike in motorcycle market.

1994 Manufactured 3.5 Lacks motorcycles in a financial


1996 Hero Honda captured 65% of market particularly in

Gujarat, and in whole India. They got 55% of the

market compared to other auto companies.

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Company Profile

1984 Entered in the motorcycle with the Hero

Moped in Industry

1985 On 1st February they launched Japanese

collaboration 100 cc, CD-100

1989 On 15th August, they launched HERO


1991 Introduced another nice model CD-100 SS

1995 Introduced the revolutionary new model


1997 Introduced another fantastic four stroke bike

100 cc motorcycle HERO HONDA STREET

1999 Introduced with latest technology and

designed bike HERO HONDA CBZ

2000 Launched another nice model HERO


2001 Introduced with attractive designed and latest


2002 Introduced another powerful bike HERO


2003 Introduced another powerful bike HERO


2004 Introduced the fantastic bike of the century


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History, Growth and Development of Perfect Auto Service

The foundation of Perfect Auto Service was in 1987. The head

quarter is in Ahmedabad and Head Office is in New Delhi. As a dealer of

Hero Honda, Perfect Auto Service has been working since long time in

Rajkot. The Perfect Auto Service started for Mopeds & Bikes.

Honesty is the main principle of Perfect Auto Service and they

don’t charge even a single rupee more than with the looking and

performance of the customers.

Today the Hero Honda offers an unbeatable range of motorcycles to

suit possible need by featuring the latest technology of manufacturers of

highest quality standards.

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Project at a Glance

Name of the unit Perfect Auto Service

Address of the unit Perfect House,

Gondal Road, Vavdi,

Rajkot-360 004

Phone Number (0281) 2382101-4

Fax Number (0281) 2382105

Year of Establishment 1987

Nature of Product Consumable Durable

Name of Chairman Suryakant Dhuleshiya

Name of M.D. Suryakant Dhuleshiya

Name of Marketing


Mayurbhai Jala

Area Office In Gujarat,

Ahmedabad, Baroda, Rajkot, Surat

Manufacturing Unit Haryana & Dhule

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Changing Role of Marketing

Over the years, marketing has undergone a tremendous change both

in its role and function. Now concepts and patters of thoughts have

emerged pressures of keener competition have force it to evolve new

methods & techniques to deal with the existing problems more efficiently.

Now a day, the firm takes up the responsibility of itself to design,

develop and sell its products to suit the needs of its customers. The firm’s

major innovative efforts are on entering the size of the market in which it

participates by introducing new products and services by promoting new

applicants for existing products and by seeking out new customers who

had not purchased the company’s products earlier also. They will have to

select from a growing variety of media in planning, how best to

communicate with customers.

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Present Market Scenario

With the increase better standards of living increase exposure

through satellite television. The consumer durable market has been its

boom in the sales of consumer durable items, middle class people goes on

wide buying. Since the last few years, today vehicle is becoming an

important part of household. Customer always prefer vehicle, which is

smooth in riding, easy though fast, and also suit to, his personality. This is

the reason why people prefer Hero Honda, all feature, which require by

customers, are in their product.

Scenario of Hero Honda

As Hero Honda has wide range of product, which suit best to

customer and this results in making companies reputation very high and

after all results in good profit.

If we see the market condition, we can find the market share of

Hero Honda in competition with other companies.

Page 15: Hero Honda Report

In Gujarat

Hero Honda 63%

TVS Suzuki 7%

Bajaj (Bikes) 18%

Yamaha 12%

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1 Introduction

2 Product Mix Strategy


Product Line



Brand Name

After Sales Service



3 Price Mix Strategy


Pricing Objectives

Pricing Policy

Price List



Credit Terms

4 Promotion Mix Strategy



Sales promotion

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Personal selling


5 Place Mix Strategy


Selection of channel

Number of channel level

Market coverage



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Marketing is the bridge that diminishes the gap between the product

and consumer. Without marketing a production activities would have no

meaning. Only production is not enough equally to make consumer aware

of produced product. If consumers are aware of the product then

sometimes view and ideas of the consumers are taken into account that

what type of product they want, and on this basis product has to change

according to consumer needs. Thus the sum of total activities undertaken

to satisfy the consumer want and demands constitutes the activities of


Marketing is comprehensive firm and it includes all resources and a

set of activities necessary to direct and facilitate to direct the flow of

goods and service from product to utility consumer in the chain of

distributing. In other words marketing comprises of all the activities

involved in the determination of consumer needs at a profit. Thus

marketing encompasses all activities set exchange conducted by producers

and middlemen in commerce for the purpose of satisfying consumer


In marketing planning, marketing information is used to assess the

situation specific marketing targets are selected in the form of market

segments for each seem but a combination of a number of devices of

marketing activities that are reach a particular target segment is

formulated. The combination of these marketing methods of devices is

known as the marketing mix.

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Thus marketing mix is the set of marketing goals that the firm used to

pursue its marketing objectives in mix goals can be classified as under the

down head.





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Product is the center around which all the activities revolve.

Without product all marketing activities becomes useless, people satisfy

their needs and wants with products. Products can be designed proud to

cover anything that can be offered range or someone in satisfy a needs or

wants. The word product brings to mind a physical object. We normally

use the expression product and services but in thinking about product,

their importance lies not so much in owing them as is using them to satisfy

our wants.

Manufacturers get into a lot of trouble by paying more attention to

their physical product then to the service produced by these products. The

marketer’s job is to sell the benefits or services built into physical product

rather then just describe their physical features.

Product mix is these of all devices that a particular server offers for

sale to buyer. The product mix covers the following point.

Product line



Brand name



Product mix is the collection of the products offered for sale by a

company. In other words product mix is the composite of product offered

for sales by company or firm.

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The nature of the product mix is at times described by expression

like depth, width and consistency. Depth is used to the number of

products, items offered by the company for sales. Width refers to the

patent of different product lines in the product mix offered by the

company. Consistency describes the relative ness of the various product


Page 22: Hero Honda Report

Product Line

Product line is a group of products that are closely related to each

other, because they satisfy the need of each class of people and the price

and reasonability same in each and every market.

In today’s highly competitive market, multiplying human needs and

enlarging diversification, no company is content with producing the single

product only.

Hero Honda in this situation assumes a great significance on

product line and product mix. Hero Honda mixes different models of

Bikes. Their prices, colors, and capacity differ in different bikes and

mopeds. It require because every person has not the same choice.

Therefore to meet consumer requirement Hero Honda establishes their

product, which suit best for customers.

Product line manages need the types of information. First they must

know the sales and profit of each item in the line. Second they must know

their product line.

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Product mix of Hero Honda


CD 100 DLX Automatic

Sleek Standard

CD 100 SS Shakti 3g

Splendor Turbo Sports

CBZ Hero winner







Product line of Hero Honda

CD 100 DLX Red, Black

SLEEK Red, Black

CD 100 SS Red, Black

SPLENDOR Black, Candy Ruby Red,

Warakoram Gray, Green

STREET Red, Black

CBZ Black, Tasmania Green, Tanitian

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Blue, Candy Blazing Red

DAWN Red, Black, Silver, Candy Blue

AMBITION Blue Candy, Blazing Red,

Marroon, Moon Yellow, Myth

Gold, Chill Green, Black

PASSION Candy Blazing Red, Blazing Blue,


ACHIEVER Black, Candy Blazing Red, Candy

Tahitian Blue, Chilli Green

Metallic, Moon Yellow, Myth

Gold Metallic

GLAMOUR Candy Blazing Red, Cloud Silver

Metallic, Tornado Grey Metallic,

Impulse Orange Metallic,

Excellent Blue Metallic, Vibrant

Green Metallic, Black, Forest Blue

Metallic, Palace Maroon Metallic

Page 25: Hero Honda Report


The term feature refers to those interent characteristics of the

product, which makes it different and unique from the other products. In

other words, features means any special point differentiating that

particular from other product.

Features are characteristics that supplements the product’s basic

functioning. Most products can be offered with varying features. The

starting point is stripped down or bore version of the product. The

company concrete additional version by adding extra features. Each

feature has a change of capturing the dense of additional buyers.

Thus, features are the biggest competitive goals in the hands of

companies. Features make one company’s product superior to other

company’s similar product.

Page 26: Hero Honda Report


Main Features

Smooth kick start and toughest body

Phenomenal fuel efficient

Economical and easy to maintain

Nation arm with hydraulic jumpers

Technical Specification

Engine 4 Strokes, Single Cylinder. Air Cooled

Displacement 97.2 CC

Clutch Type Manual

Transmission 4 speed constant mesh

Ignition Electronic

Starting Kick starter

Suspension (Front) Telescopic Hydraulic fork

Suspension (Rear) Swing arc with Hydraulic Jumpers

Dimension (LxWxH) 1885 x 770 x 1060 mm

Wheel Base 1210 mm

Ground Clearance 135 mm

Dry Weight 95 kg.

Max Power 7.0 PS 8000 RPM

Max Speed 85 kmph

Full Tank Capacity 10.1 ltr (1.3 ltr. Reserve)

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Main Features

Big and powerful shock absorber

Wide wheel

Weightful Body

Engine Guard

Technical Specifications

Engine 4 Strokes, Single Cylinder, Air


Displacement 97.2 CC

Clutch Type Manual

Transmission 4 Speed constant mesh

Ignition Electronic

Starting Kick Starter

Suspension (Front) Telescopic Hydraulic fork

Suspension (Rear) Swing arc with Hydraulic Jumpers

Dimensions (L x W x H) 1960 x 730 x 1050 mm

Wheel base 1210 mm

Ground clearance 165 mm

Dry weight 103 mm

Max power 7.0 PS 8000 RPM

Max speed 85 kmph

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Full tank capacity 10.1 ltr. (1.3 ltr. Reserve)


Main Features

Comfortable shape and design of seat

Strong body and machine

Large capacity of fuel

Easy kick start

Technical Specification

Engine 4 Strokes, Single Cylinder, Air


Displacement 97.2 CC

Clutch Type Manual

Transmission 4 Speed constant mesh

Ignition Electronic

Starting Kick starter

Suspension (Front) Telescopic Hydraulic fork

Suspension (Rear) Swing arc with Hydraulic Jumpers

Dimension (L x W x H) 1965 x 730 x 1060 mm.

Wheel base 1210 mm.

Ground clearance 165 mm

Dry weight 100 kg

Max power 7.0 PS 8000 RPM

Max speed 85 kmph

Full tank capacity 10.3 ltr. (1.4 ltr. Reserve)

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Main Features

Toughest body and double kredol tabular

Extra strong engine guard

Beautiful looking

Kick start to avoid pedaling and pushing

Nice headlight with beautiful guard

Technical Specification

Engine 4 Strokes, Single Cylinder, Air Cooled

Displacement 97.2 CC

Clutch Type Manual

Transmission 4 Speed constant mesh

Ignition Electronic

Starting Kick starter

Suspension (Front) Telescopic Hydraulic fork

Suspension (Rear) Swing arc with Hydraulic Jumpers

Dimensions (L x W x H) 1950 x 720 x 1040 mm

Wheel base 1230 mm

Ground clearance 159 mm

Dry weight 100.3 mm

Max power 7.0 PS 8000 RPM

Max speed 90 kmph

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Full tank capacity 10.5 ltr. (1.4 ltr. Reserve)

Page 31: Hero Honda Report


Main Features

A unique in built ‘City Clutch’

Rotary gears

Automatic decompression

Easy to ride in traffic and great pick up

Technical Specification

Engine 4 Strokes, Single Cylinder, Air


Displacement 97.2 CC

Clutch Type Manual

Transmission 4 Speed constant mesh

Ignition Electronic

Starting Kick starter

Suspension (Front) Telescopic Hydraulic fork

Suspension (Rear) Swing arc with Hydraulic Jumpers

Dimensions (L x W x H) 1882 x 665 x 1044 mm

Wheel base 1205 mm

Ground clearance 133 mm

Dry weight 92.8 kg

Max power 6.8 PS 8000 RPM

Max speed 84kmph

Full tank capacity 3.5 ltr

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Page 33: Hero Honda Report


Main Features

TPFC system (Transit Power Fuel Control)

Air injection system

Dynamic powers

Zero crank case evaporative emission

Trapezoidal head light

Muscular fuel tank

Technical Specification

Displacement 156.8 CC

Power 12.8 PS @ 8000 rpm

Torque 1.26 kg. M. @ 6500 rpm

Acceleration 0.60 kmph in 5 seconds

Bore x Stroke 63.5 mm X 49.5 mm

Compression Ratio 8.5 : 1

Type of Brakes (Front) Drum version (130 mm diameter)

Optional : Disc version

Type of Brakes (Rear) Drum (130 mm diameter)

Type of Engine 4 Strokes, Single Cylinder, Air


Full tank capacity 12.5 ltr. (2.0 ltr. Reserve)

Page 34: Hero Honda Report


Main Features

Wide wheel

Weightful body

Engine guard

Nation arm with hydraulic dumpers

Technical Specification

Engine 4 Strokes, Single Cylinder, Air


Displacement 97.2 CC

Clutch Type Manual

Transmission 4 Speed constant mesh

Ignition C.D.J.

Starting Kick starter

Suspension Telescopic Hydraulic fork

Dimensions (L x W x H) 1980 X 720 X 1040 mm

Wheel base 1230 mm

Ground clearance 160 mm

Dry weight 103 mm

Max power 7.4 PS 8000 RPM

Max speed 85 kmph

Full tank capacity 10.5 ltr. (1.8 ltr. Reserve)

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Main Features

Big and powerful shock absorber

Wide wheel

Weightful body

Nation arm with hydraulic jumpers

Wide and safety sheet

Helmet holder

Technical Specification

Engine 4 Strokes Single Cylinder, Air


Displacement 97.2 CC

Max power 7.5 PS, 8000 RPM

Gear Box 4 speed constant mesh

Clutch Multi-plate wet type

Max speed 85kmph

Suspension Telescopic hydraulic front fork

Tyre (Front) 2.75 X 18 X 4 PR

Tyre (Rear) 3.00 X 18 X 4/6 PR

Final drive Roller chain

Fuel tank capacity 12.8 ltr. (1.7 ltr. Reserve)

Ignition Electronic CDJ

Starting Kick starter

Wheel base 1235 mm

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Ground clearance 159 mm

Length 1980 mm

Width 720 mm

Height 1060 mm

Kerb weight 116 kg

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Main Features

133 cc engine

Extra strong engine guard

Beautiful looking

Nice headlight with beautiful guard

Technical Specification

Engine 4 Strokes, Single Cylinder, Air


Displacement 133 cc

Max power 17.0 BHP @ 8000 RPM

Gear Box 5 speed constant mesh

Clutch Multi-plate wet type

Max speed 100 kmph

Acceleration 0 to 60 kmph in 6 seconds

Suspension Telescopic hydraulic front fork

Final drive Roller chain

Battery 12V-2.5AH (Kick start)

12V-5AH (Self start)

Starting Digital CDJ system

Wheel base 1285 mm

Ground clearance 150 mm

Length 2030 mm

Width 760 mm

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Height 1100 mm

Kerb weight 126.5 kg (Kick start)

130 kg (Self start)

Fuel tank capacity 12.5 ltr.

Page 39: Hero Honda Report


Design reflect the out look and features of the product which makes

it different from other product. Designing a product is a special and very

tough job. Various aspects of the products are to be kept in mind while

designing a product. These may include differentiation, features,

characteristics, performance, durability, reparability, style etc.

Design is the interacting force with all the features as its parameters.

The designer has also to keep in mind the capital allocated from the

companies point of view. A well-designed product would be pleasant to

look, easy to open, install, learn how to repair and dispose etc. The

designer has to take all target market and weights the different benefits

and costs.

Hero Honda always takes care of design of their product. They

always research for it and give best suit to their valuable customers.

Page 40: Hero Honda Report

Introducing new Splendor and Street in 1997 they show their

awareness about design. It is a perfect blend of design, style and


Introducing their newest model Hero Honda CBZ in 1999, they

have proved that they are leader in designing.

CBZ is the fantastic model in bikes. Its unbelievable design attracts

every one to purchase it and drive it.

Dawn launched another nice model in 2000 and it is take care of

design so that, introducing Passion in 2001, and another powerful Hero

Honda bike in 2002. By introducing Achiever, Glamour & Karizma they

have secured their monopoly in bike market.

Page 41: Hero Honda Report

Brand Name

Brand name refers to that name through which the products of the

company are recognized. Brand name can be name, term, sign, symbol, or

design or a combination of them, intended to identify the goods or services

of one seller or a group of seller and to differentiate them from those of


Brand name is the most important of any product because it is the

identification of the product. Brand name may be company’s name or it

may be different. As the better know the brand name, the higher will be

the sales.

A powerful brand name is said to have consumer franchise. This is

evident when a sufficient number of customers demand that brand and

refuse a substitute even if the price is somewhat lower. Today the brand

name is such a strong race that hardly anything goes understand.

The brand name of Hero Honda is based on the name of

collaboration between two companies in India and Japan. India’s Hero

Company and Japan’s Honda Company to form the name ‘Hero Honda’

Page 42: Hero Honda Report

After Sales Services

Services are activities, benefits or satisfaction that are offered after

sales. In other words, a service is any act or performance that one party

can offer to another that is essentially intangible and does not result in the

ownership of anything.

Firms that provide high quality services undoubtfully perform their

best services e.g. the manufacturers could make an arrangement with

distributors and dealers to provide these services. Thus the customers

durable market is highly competitive in terms of after sales services.

Sometimes it’s happen that the company increases a high cost burden in

terms of after sales services. But the company inspite of its cost burden

benefits in long run. Thus, companies prefer to incur high cost rather than

losing their potential customers.

Thus, after sales service is important part for any company to

sustain in today’s competitive market. It is the device to pursue customer

and earn huge reputation.

Hero Honda has an extensive dealer network and age staff that can

reach to obey customers at any time. Hero Honda servicing centers are

also in the form of authorized dealers. The Hero Honda also offers service

coupon for the service of various Bikes. Generally they give 3 services in

all motorcycles but in the new model like Street, Splendor and the newest

CBZ, they provide more than 3 services.

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Sometimes they also arrange such a campaign in which their

customer can service their Bikes totally free & if any parts require they

provide at a discount.

Page 44: Hero Honda Report


Packaging can be defined as the activities of designing and

providing the customer or wrapper for a product. The container or wrapper

is called as packaging. The package might include 3 level of material. The

primary package is products immediate container. The second package

refers to the material that projects the primary package and is discarded

when the product is about to be used.

Almost all physical products going to the market are packaged and

labeled. Packaging plays a major role in case of expensive, delicate and

high percentage of breakage products. Many marketers have called

packaging as the 5th ‘P’ of marketing mix.

Packaging depends upon the nature of product. It means that what

type of product is and in terms of physical nature. Some products can

easily packed in container where as some products require special

container and some product cannot be packed in container. Therefore to

pack that type of product, it requires special material, which covers only

that portion of product, which is delicate and may be damaged as the case

of Bikes.

As Hero Honda produces Bikes, they take due care for their

packaging. Whole body of bike is covered with thermo coal.

Page 45: Hero Honda Report


Product warranties are an important promotional tool especially as

consumers become more quality sensitive. Warranties means authority or

justification that the thing sold is fit for use and the producer accepts

reproducibility for repairs within a period of time.

The company can promote sales by adding a free warranty or

service contract. Warranty forms an important part of customer durables.

Customer always expects a longer period of warranty. But the cost burden

on company is very high and the company has to perform cost benefit

analysis. While deciding the period and scope of warranty only that policy

should be selected where the benefits out run the cost. But it is very

difficult to calculate and maintain balance by cost and benefits.

The warranty period of Hero Honda Limited is one year. The

company replaces all the parts & movements, which suffer within a period

of one year from the date of purchase. Even after the warranty period is

over, the retailers replace the parts but they charge the customers at a

lower rate. This is beneficial to both the retailers even if they replace the

parts after the warranty period and the customers get replacement benefit

at a lower rate.

Thus, the benefits are a long-term benefit. These benefits are in

terms of customer’s royalty, brand approach, positive feedback, dealer and

retailer royalty, etc.

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The price mix of any company should cover the following area:

Pricing Objective

Pricing Policy



Credit Terms

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For any business activity is performed properly, its objective must

be determined. Pricing is not possible unless a definite objective is clearly

defined. Though it is difficult to know the subject, which manufacturers

keep in mind while fixing prices of their product?


Companies pursue survival as their main objectives if planned with

other company’s interest, competition or changing customer’s behaviour

to keel the plant going and the inventories turning over the carry out.

Maximum current profit

Many companies try to set the prices that win maximum current

profit. They estimate the demand and costs associated with alternative

price and choose the price and that produce the maximum profit and cash

flow or rules of return on investment.

Current revenue

Some companies set a price to earn maximum sales revenue.

Revenue maximization enquires only estimating the demand function.

Many managers believe that revenue maximization will lead to long run


Maximum sales growth

Other companies want to maximize unit sales. They believe that

higher sales volume lead to lower unit cost and higher long run profit.

They set the lowest price assuming a market price is sensitive.

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Maximum market skimming

Many companies setting its prices to ‘skim’ the market. The

company sets that price that makes it just worthwhile for some segments

of the market to adopt the new material.

The Pricing Objectives of Hero Honda Limited

Price stability

Hero Honda is one of the companies in Bikes and Mopeds market in

India, which call for long-term interest of the business and aim at a price

stability. This attempt is not to let price fall low during depression and rise

to high during boom.

To increase market share

The main objective of Hero Honda Limited is to get maximum

market share in scooter market, so they have to set their prices at definite

level by which they can increase their market share.

To meet competition

Hero Honda has adopted such a price policy that helps the company

to meet the competition in the market successfully.

Page 49: Hero Honda Report


Pricing policy is the standing answer of the firm to require problem

of pricing. It provides guidelines to Marketing manager to solve

appropriate pricing decision. If competition is mainly on price basis then

each marketer generally prices their product at the same time to level their


In present era, most of the companies adopt a way to take

reasonable price on its product and capture the market. Thus in present

era, companies have no more interest in maximum profit but in capturing

the market. As we know that the bikes and mopeds of Hero Honda

Limited are available at reasonable price and greater style.

Hero Honda Limited itself sets up the prices of bikes and moped.

We can see in the below chart that Central Sales Tax, Gujarat Sales Tax,

etc. should be paid according to the rules and regulations of the


Page 50: Hero Honda Report

Price Structure

Particulars Amount (Rs.)

Factory price

Add: Forwarding, Handling & looking charges



Balance --------------

Add: Central Excise Duty

Add: Freight Charges



Net Dealer Price ------------

Add: Commission -------------

Retail Price -------------

Add: Rajkot Municipal Corporation Entry Tax

Add: Gujarat Sales Tax (4%)



Ex-show Room Price --------------

Add: RTO Tax

Add: Insurance & Accessories



On Road Price


Page 51: Hero Honda Report


Any company, which adopts the dealer-retailer channel of

distribution, has to be very careful while formulating its pricing objectives

and pricing policies. Thus, companies circulate price lists periodically in

order to make the dealers, retailer and customer aware of the price of a

product is to be sold. The price at which the product is to be sold is usually

printed on the package.

The prices of every company are revised and reprinted from time to

time depending on the changes in the pricing policies, tax rates, etc. of the

government. The pricing policies of the company also changes with

technology used by the company, change in the price objectives of the

company, change in the management strategy of the company and various

other changes that affect the price of the product manufactured by the


Price list form an integral part of the framework of the company.

They are a proof to the company’s pricing policy. To the company it is a

statement, which indirectly shows the future profit. No dealer or retailer

can charge a price, which is above the maximum price set by the

company. It is matter of pricing policy of the top management to decide

how and when it incorporates price changes and revises the price list.

Page 52: Hero Honda Report


The term discount means a deduction in the nominal value of the

price or amount from the product. In other words, discount is the amount,

which is taken off the face price of the product. Most companies modify

their basic price to reward the customer purchase and off-season buying.

These price adjustments are called discount. Discount is very popular tool

in the hands of top management to increase sales. The companies make

efficient use of this tool to expand their market. Discount being a

reduction in the original price of the product are relatively cheap form of

attracting new customers and sustaining old ones.

Discount depends upon the nature of product. In such product, one

can easily give discount. Bikes, Mopeds and scooter are not the product on

which discount can bi given. Therefore, Hero Honda Limited sticks on

price of their product.

Page 53: Hero Honda Report


Allowances are the other type of reduction from the list price.

Allowances are price reduction granted for training is an old item. When

buying a new one promotion as allowances are payment or price reduction

to reward the dealers for participating in advertising and sales support


In other words allowances is an amount offered in return for the

retailers agreeing to feature the manufacturer’s product in some way. In

advertising, allowance compensates retailers for advertising the

manufacturer’s product. A display allowance compensates them for

carrying a special product display.

Hero Honda Limited offers no special allowance to its dealers. This

is because the company itself directly carries on all the trade-promoting

activities. Thus, the process of promotion is centralized.

Page 54: Hero Honda Report


Credit terms refer to the rules & regulations in the form of an

agreement between the producers and the customers in relation to the

credit facility, which the producer gives to their customers. In other words

creditors are the terms and condition, which are mutually agreed upon by

the customers and producers and related to the benefits, which will

provide to other party.

Depending on the policy of the management of the company, credit

terms may remain the same from customer to customer and it may be

different for customer and for dealer or distributor. It also depends on how

good relation is between the producer and customer. Credit terms may also

change when the policy of the company changes over a period of time. It

is a basic fact that each company has to give a short or long term of credit

facilities if it wants to survive in the market and in cutthroat competition.

If a company does not give credit facilities, the customer turns to its

competitor’s product in costlier. This credit facility is a must for all

companies in order to survive.

The credit terms of Hero Honda Limited are fairly straightforward.

The credit period allowed to the dealers is 60 days the company also takes

a deposit from distributors against the dealership allotted to them.

Page 55: Hero Honda Report


It is unanimously accepted that ‘Nothing happens until somebody

promotes something’. You may have the best product, price of purchase

but even though people will not buy your product, if they haven’t come

across it and simply aware of its existence. The marketer must

communicate their prospective buyers and provide them adequate

information regarding product. The main job of promotion in marketing

mix decision is ‘Right product must be available in right time and at right


Broadly speaking, promotion means to push forward or to advance

in ideas in such a way as gain in acceptance and approved promotion is

any communication activity whose main objective is to move forward a

product, service or idea in any channel of distribution. It is an effort by a

recommended use of the articles, service or idea, which is being promoted.

Promotion is a form of communication with an additional element of

persuasion. The promotion activity always attempts to affect ideas,

products, services, etc. is the heart of promotion.

Modern marketing causes for more than developing a good product,

pricing attract lively and making it accusable to target customer’s

company must also communicate with their present and potential

customers. Every company directly to indirectly plays the role of

communication and promotion. To communicate effectively companies

hire advertising agencies to develop effective advertisements, sales

Page 56: Hero Honda Report

promotion specialist to design sales incentives program and public

relations firms to develop corporate image. They train their salesman to be

friendly and knowledgeable. For most companies the question is not

whether to communicate but rather what to say to whom and how often.

A modern company manages a complex marketing communication

system. The company communicated with its middleman, consumer and

various publics. The marketer must communicate to its prospective buyers

and provide them adequate information in a persuasive language. The

people must know that the right product is available at the right place.

Sales will not take place automatically without promotion or marketing

communication even though the product is of the best quality. It is an

important marketing strategy and fulfills the marketers to communicate

with the customers.

Essentially promotion is persuasive communication to inform the

prospective customers is responsible for walking and stimulate demand,

capture demand, from rivals and maintain demand for the product even

against keen competition.

Marketing have adopted a communication view of the firms

promotional activities receives is not regarded as an active caution.

Promotion includes the following:


Sales Promotion

Personal Selling


Page 57: Hero Honda Report


We can define advertising as any form of non-personal presentation

of ideas, goods or services by an identified sponsor. Advertising is the

most important tool of promotion. There will be hardly any field of

business in which advertising is not used for scores expansion, it is not

exaggeration, and we say that ‘modern age is the age of advertise’. It is the

foundation of modern trade and industry.

Advertising is one of the most common tools the company uses to

direct persuasive communication to target buyers and public. We may

define advertising as:

“Advertising is any paid form of non personal presentation and

promotion of ideas, goods or services by an identified sponsor.”

From above discussion, we can say that each & every company,

whether public or private has to advertise for its survival. Hero Honda

Limited has also undertaken the advertising programme to promote the

sales because it knows that advertising has the following strength.

It offers planned and controlled stage.

It can contact and influence number of people simultaneously

quickly and at a low cost per prospect.

It can reach prospect that can’t be approached by salesman.

It can be very useful to create maximum interest and offer adequate


Page 58: Hero Honda Report


The first step in developing an advertising programme is to see the

advertising objectives. According to Hero Honda Limited those objectives

must flow from decision on the target markets, market positioning and

marketing mix. The Hero Honda Limited has undertaken the activity of

advertising with a view to attain the following objectives:

To Inform

Telling the market about new feature of product.

Suggesting new uses for a product.

Informing the market of a price change.

Explaining how the product works.

Describes available services.

Correcting false impression

Building a company image.

To Persuade

Building brand preference

Changing buyer’s perception of product attributes

Persuading buyers to purchase

Persuading buyers to receive a sales call

To Reminding

Reminding buyers that the product may be needed in near future.

Reminding buyers where to buy it.

Keeping in mind during off-season

Maintaining its top-of-mind awareness.

Page 59: Hero Honda Report


The term media is a phrasal form of medium. In advertising term

medium is a channel of communication such as TV, Newspapers, Radio,

etc. A media is a vehicle for carrying the sales message of an advertiser to

the prospects. It is needed a vehicle by which advertiser convey their ad in

reducing gap in between products at one hand and consumer at other.

The sales media depends upon various features such as:

The financial allocation for advertising.

The nature of product and the demand for it.

The nature of competition and the extent of coverage require.

Cost of media, co-operation and the promotional aids offers media


Right media of advertising will enable the advertiser to deliver the

message effectively to the intended market or prospect. The different type

of media can be analyzed as under.

Page 60: Hero Honda Report

Media of Advertising











Newspaper Radio Posters Circular



Magazine Television Wall


Catalogue Car




Screen slide






Price list





Hero Honda Limited, generally uses mostly press media, broadcast

media, out door media and sometimes transit media for their

advertisement. As Hero Honda Limited is a giant group in manufacturing

Bikes and Mopeds they are taking due care for advertisement of their


They are giving their advertisements regularly in all media they are

using for advertisement; following are some medias in which they


Page 61: Hero Honda Report


Newspaper is the best media for advertisement of any product or

service. Through newspaper, the message of any producer can reach to

each & every person.

Hero Honda Limited has selected newspaper as its media of

advertising because it is the most effective media. It has general & wide

appeal. They are flexible periodical change in size and contents are also

easy. At local level they are using different newspapers in different cities.

(Sandesh & Gujarat Samachar for Rajkot City)

City Newspaper

Mumbai Times Of India

Delhi Hindustan Times

Calcutta Telegraph

Chennai Hindustan Times

Ahmedabad Times Of India

Bangalore Deccan Herrid

Hyderabad Deccan Cromic

Lucknow Times Of India

Pune Indian Express

Baroda Indian Express

Page 62: Hero Honda Report


Magazines are considered to be the most effective media through its

coloured attractiveness. Magazines have largest life and greater value

reference value. Further they are using magazines for advertisement

because selective appeal is possible through it. The magazines have most

circulation form.

Hero Honda Limited is also giving regular advertisement in

magazines. They use special magazine for bikes.

For Motorcycles Sports Star

Cricket Samrat

Sports World

For Mopeds Chitralekha

Abhiyan etc.

Page 63: Hero Honda Report


In the last 2 to 3 decades, the television network has developed and

grown tremendously. In India there are hundreds of television stations,

which relay the programme through Doordarshan. Apart from this, there

are other channels also like Star, Zee, Sony, etc., which provide their best

programmes. This has been proved to be an ideal medium for

entertainment and information transfer. Now-a-day sponsored programme

are very common on television. Television is high frequency media with

an immediate impact.

Hero Honda Limited is using television as important media. They

advertise their product Zee TV, Doordarshan, Sony & other popular

channels before popular programme or between programmes, so that they

can attract more customers.

Virendra Utpal (Marketing Manager) is giving more importance to

television advertisement because it can appeal through ear as well as eyes

and can be demonstrated with explanation. It reaches the guidance of

almost like personal salesmanship. Thus, it is really wonderful mean of

communication for creative marketing.

Page 64: Hero Honda Report

Advertisement Campaign of Hero Honda on Television .

Hero Honda Women’s World Cup

Hero Honda Limited was official sponsor of World Cup Cricket

1999, England

Hero Honda Limited always arranges and sponsors the one-day

international cricket match series.


Generally big business houses prepare their advertisement film and

get them display in cinema houses.

Hero Honda Limited uses this type of media, when they are

introducing their new model of bike. They make short film and display in

cinema houses, which is more impactive to new introducing model.

Page 65: Hero Honda Report

Out Door Advertising

Outdoor media is also very important part of advertisement. The

benefit of outdoors media is that it is eases and lower cost programme

therefore everyone can afford.

Hero Honda Limited has adopted posters, hoardings, electric

display and sometimes sky advertising. They always set their hoarding in

city at the place where most of the people passes by and get attracted

towards it.

Sometimes they also uses wall painting. They always set their

electric displays outside their showroom, which attract customers and

sometimes they set bat down with their name in the sky while they

sponsor cricket matches.

Hero Honda Limited is taking care of some important things while

giving advertisement through this media such as the place of posters,

hoarding, and electric display. They obey the rules & regulations laid by

the government.

Page 66: Hero Honda Report


A modern advertising agency with specialized knowledge, skill and

experience, which are required to produce an effective campaign.

Advertising agencies has a specialist’s work together to understand fully

the advertiser’s requirement of an advertisement campaign and develop

suitable advertising plans & strategies. By certain advertisement and

delivering plans and strategies. A modern advertising agency is the

foundation from which flow most of the advertisements, which we see and

hear in the national and regional media.

Hero Honda Limited has also taken the help of very popular

advertising agency ‘Hindustan Thomson’.

Reasons for using Advertising Agency

The company cannot have all types of specialists such as

copywriters, design staff, market research, etc. The agency has these

highly qualified specialists on a department basis because their costs are

spread over many advertisers. Hence it is economical and cheaper to use

advertising agency.

The agency can be unbiased or objective view if an advertisement

problem. The avenue can see that product, its merits and demerits through

the see of the buyers who are also outsiders. This objective is not possible

for an advertisement department of the company.

Page 67: Hero Honda Report

Finally the media owner pays the agency. The company pays

nothing for it, an agency that is buying advertisement space.

Hero Honda Limited gives the design, size, colour, and etc. of

different type of bikes and mopeds of the agency. Then advertisement

agency finalizes the advertisement. Thus the function of creation and

development of advertisements are complete.

Selection of Media

Placement of advertisement, research, studies of agency

characteristics are performed by Hindustan Thomson. It receives 15% of

commission from media owners.

Advertising Theme

The theme or appeal is the central idea around which the

advertisement is created. It is called unique sales separation. There are

various themes used in an advertisement to sell its product or services. The

selection of the theme is usually made by the theme of consumer study

and research.

Hero Honda Limited has conducted customer research study. In this

study they have found that the knowledge of the types of perspective

customers, their pattern of living, class from which they belong and kind

of approach they need. The advertisement theme is a heart and soul of the

Page 68: Hero Honda Report

advertisement and message. After proper consideration Hero Honda

Limited has selected following theme for their products.

Theme of Pride

Generally motorcycles of Hero Honda Limited are sold with the

theme of pride appealing to upper middle class and rich class. ‘Easy to city

ride and the wheel in India’ is the statement showing the pride and ‘design

of excellence showing the pride.

Theme of Comfort

Hero Honda Limited has given more stress to this advertisement

theme because comfort is the most important element for the domestic

goods. They have given importance to the comfort through showing the

technical features of the product. ‘City ride made easy’ and ‘Fill it, shut it

and forger it’ shows comfort for customers.

Theme of easy in Operation

This is necessary theme for any product. Hero Honda Limited has

look after for more easily in operation and customer can use it whenever

required. In Hero Honda ‘Street’ they made it easier in operation that there

is no need for kick-starts as self-start system is available.

Page 69: Hero Honda Report

Theme of mode selling

They re giving more stress through the selling line

‘Value of money for years’

‘Fill it, shut it, and forget it’

‘Designed to excel’

‘Motorcycling unplugged’.

It makes more impact in the mind of customers and they will be

ready to purchase the motorcycle of Hero Honda Limited.

Page 70: Hero Honda Report


Sales promotion is an important instrument to lubricate the

marketing efforts. Today sales promotion is new and not merely a luxury

or a fashion. It is an integral part of marketing efforts. Sales promotion is

entered to activities, other than salesmanship, advertisement and publicity,

which stimulate consumers purchasing and dealer effectiveness. It consists

of diverse collection of invoice tools mostly short-term designed to

structure quicker and greater purchase of particular products by consumer

or sealers. In short where advertising offers reason to buy, sales promotion

offers incentives to buy.

Tools for sales promotion

Many sales promotional tools are available to accomplish sales

promotion objectives. The planner should take into account the type of

market, sales promotion objectives, and competition and cost effectiveness

of each tool.

Following are the main sales promotional tools:

Consumer promotion

Trade promotion

Sales force promotion.

Page 71: Hero Honda Report

Consumer promotion tools

Following are the main consumer tools of Hero Honda Limited.

Free Trials

Hero Honda Limited provides ‘Free Test Ride’ at dealer’s show

room to their customers at the cost. They are providing free test ride on

CD-100, CD-100 SS, Street, and Splendor.


All the vehicles of Hero Honda Limited are demonstrated at the

show room of dealer. Not only the vehicles itself but also the accessories,

which are used in product is superiority in operation.

There are other consumer promotional tools are there like coupons,

cash refund, premium, percentage rewards and gifts.

Trade promotion tools

Hero Honda Limited regularly arranges trade promotion activities.

Following are some trade promotional activities, which are performed by

Hero Honda Limited.

Display in exhibition and fair, etc.

Hero Honda Limited takes part in fair. Generally at the time of

festivals like Navratri, Janmashtami they display their new bikes in fair.

Page 72: Hero Honda Report

They also take part in trade fair, which are arranged and organized

by some club or association. They display and demonstrate their new

models there.

Sales contest

Hero Honda Limited has its wide dealership network. Therefore, the

first is to decide the sales target of each and every dealer. Dealers are

prompt for higher selling and at the end of year, selling of dealers match

with target and whomever dealer gets best selling is liable for best reward.

This results in best performance & clears maximum profit for company.

Sales force promotion

Hero Honda Limited performs force promotion activities. It is very

much necessary to promote sales force of their company to reach at target

sales and perform other activity affectively.

Page 73: Hero Honda Report


Personal selling is the process of including and excluding a perceive

buyer to note a commodity services or to favorable upon an idea that this

commercial significance with the seller. Personal selling is highly

distinctive and the only form of personal selling involving face to face

relationship or communication between sales person and one or more

prospective customers.

Now-a-day, personal selling is increased in the consumer durable

market. But so far as Hero Honda Limited is concerned, they are not

performing personal selling regularly and continuously. However, they are

practicing when any new model of Bike or Moped is to be introduced in

the market.

Page 74: Hero Honda Report


Publicity is a non-personal stimulation of demand for a product,

service or a business unit. By placing commercial significant news about it

in a publication or obtaining favorable presentation of it on Radio, TV or

Magazine that is not paid by the media sponsor.

For Hero Honda Limited, publicity is one of the promotion mix,

which cannot be ignored in any case. Till today many articles regarding

the company is published in local magazines such as ‘Abhiyan’ and

‘chitralekha’, etc. Through publicity of its company Hero Honda Limited

has created own goodwill in market.

Page 75: Hero Honda Report


More production of commodity is not enough but is must reach to

the right man at right time and at right place. In marketing point of view

place mix strategy is the 4th important ‘P’ or important element of the

marketing mix strategy. It has 2 sub divisions.

Channel of Distribution

Physical Distribution

Channel of Distribution

Channel of distribution is the best marketing institution

participating in the marketing activities involved in the movement or the

flow of goods or services from the primary producer to the ultimate

customer. In the field of marketing the channel of distribution indicates

routes in pathway through which goods and services flow or move from

producer to consumer.

Physical Distribution

Physical distribution consists of marketing activities related to the

physical looking of goods such as protective packaging; order processing,

inventory management, transportation and warehousing.

If you build a better mousetrap, the world will heat your door. But

too often the customers must have the delivery of that better mousetrap at

the right place, at the right time and at right quantity. The physical

distribution function use other half of marketing is responsible for

completing the marketing transaction.

Page 76: Hero Honda Report


The problem of selecting the best distribution channel is most

complex. There are many factors affecting the channel choice like nature

of the product, marketing environments, etc. These all are very important

factors for determination of distribution channel. Every marketer has to

consider all these factors at the time of selection of the distribution

channel and selecting channel member. Hero Honda Limited takes the

following factors into consideration.

Financial Condition

Before appointing a dealer or agent or retailer Hero Honda Limited

find out the financial condition. If the financial condition is sound and if

executives of Hero Honda Limited are satisfied with these conditions, then

Hero Honda Limited looks for further aspect.


Other thing, which Hero Honda Limited considers, is location. It is

the most important for wide market coverage. Generally show rooms of

Hero Honda Limited are located at the center point of the city or at the

place from where most of the public passes by.

Page 77: Hero Honda Report

Reputation in the market

This is considered to be goodwill of any dealer of Hero Honda

Limited. They take full bio-data of person, who has proposed his/her name

for dealer of Hero Honda Limited and person must have good reputation

in society.

Experience & knowledge

Hero Honda Limited considers experience and knowledge of

person. They consider about the experience of person in some business or

in small business and other things. They consider knowledge. Person must

have good knowledge of market, present scenario, competition and other

essential things.

Provision for after sales services

If dealer, retailer or wholesaler are ready to give after sales service

to customers, then Hero Honda Limited take particular decision for

selection. Not only this, Hero Honda Limited has offered the after sales

service on its vehicle.

Page 78: Hero Honda Report


Distribution means to distribute, spread out. In the field of

marketing channel of distribution indicates routes or path through which

goods and services flow from producer to consumer. Thus the channel of

distribution flow on:


Marketing communication



Hero Honda Limited has good channel of distribution to meet the

consumer demand. They had appointed nation wide dealers. Their dealers

are spread all over India. Hero Honda Limited is producing & distributing

to their dealers as and when needed. And from dealers it reaches to

ultimate customers.

Page 79: Hero Honda Report

Plants of Hero Honda Limited

(Dhule, Haryana)

Dealer (Perfect Auto Service, Rajkot District)

Consumers Sub Dealers


As authorized dealer of Hero Honda Limited, Perfect Auto Service

has appointed some sub-sealers to reach at the maximum customers and

customers can reach to them with minimum efforts. Through appointing

sub0dealers one can easily reach to the consumer who are not quickly

come across to cities.

Page 80: Hero Honda Report

Market Coverage

Once the general channel decide it has to be used to increase in the

share of market coverage. It is an important activity while the company is

passing from the period of stability. The Hero Honda Limited has secured

keen position in the corporate market. Hero Honda Limited is number one

motorcycle producer in India. They secure 55% of market share in

competition with their competitors.

It is true that Hero Honda Limited has get substantial and wide

market in India, but if we think in global sense and compete with

motorcycle manufacturers of whole world, then what is the position of

Hero Honda Limited? Answer is very simple that at international level

they secure 8 to 10% market share. Hero Honda Limited vehicles are

generally sold in the East & South America and other countries like

Argentina, Mexico, Paraguay, Venezuela, Indonesia, Japan and China.

Page 81: Hero Honda Report


Marketer needs to be concerned with their company’s transportation

decision. Transportation choice will affect the price of the product on time

delivery performance and the condition of the Hero Honda Limited, which

they arrive all of which affect consumer satisfaction. Transportation is

cause of problems of physical distribution. It is sometimes caused the

guardian knock of physical distribution.

Hero Honda Limited has made contract with road line transport

companies for the transportation of vehicles.

Page 82: Hero Honda Report


Every company has to store its goods, as they can’t be sold

immediately. Storage function is necessary because production and

consumption is rarely matched. The company must decide on a desirable

number of stocking locations. More stocking locations means that goods

can be delivered to customers more quickly. The number of stocking

locations must strive a balance between customer’s service level and

distribution costs.

So far as Hero Honda Limited is concerned, it is not the practice of

the company to provide warehousing facility to the dealers. Hence to make

arrangement of godowns for the storage of vehicles Perfect Auto Service

has very big warehousing.

Page 83: Hero Honda Report



1 Meaning & Importance of Marketing


2 Objectives of Marketing Research

3 Scope of Marketing Research

4 Marketing Research Process

Page 84: Hero Honda Report

Meaning & Importance of Marketing Research

Mostly marketing research involves studies related to buyer

behavior, brand preference product or brand usage, advertising awareness,

sales promotion, physical distribution, dealer behavior, competition & so

on. The simple meaning of research is that it is the process of gathering,

recording & analyzing of critical & relevant facts about any branch of

human activity. It indicates critical & searching study and scientific

investigation of problem, a proposed course of action hypothesis or a

theory while marketing research is the systematic gathering, recording &

analysis of data about problem connected with market product, price,

promotion & destination. It is connected with all those factors, which have

a direct impact on the marketing of products and services. Marketing

research is a process of manufacturers like what to produce? How to

produce? When to produce? It works as the bridge between producers &


The marketing research is directly interested in offering sound

alternative solution to marketing problem relating to exchange of goods

and services from producer to consumer. Beginning and end of marketing

management is marketing research. In a dynamic economy, marketing

research acts as the investigate arm of marketing manager. As now a day

are competitive in nature and so many competition comes in to a market

so with the help of marketing research both the aim the information

Page 85: Hero Honda Report

regarding customer demand and new competitors can be obtained

immediately and best action can be taken.

Objectives of Marketing Research

An objective is precondition of any work. To determine the

objectives is the 1st step in the planning process. Once the objectives are

determined the way are easily found out. Objectives are guidelines for

completing the work. The principle of objective is the study to know the

attitude, preference and buying behavior of consumer, which never

remains constant over a time period. Following are the major objectives of

this study.

To know consumer awareness about various models of Hero Honda


To know perceptions and preference of customers regarding various


To know consumer satisfaction regarding product and brand.

To know media of advertising adopted by dealers.

To study tools of publicity adopted by dealers.

To study factors, which plays important role in increasing sales of

Hero Honda Limited.

Page 86: Hero Honda Report

Scope of Marketing Research

The scope of study was to understand the thinking of consumer

toward Hero Honda Limited. How do they react to the comfort and

convenience gives? How much they are satisfied against their buying

decision? Which factors motivated them to make decision of purchasing

Hero Honda? Thus the scope can be specifically highlighted as below


To pinpoint the features, which persuade and influence the buying

decision of purchasing Hero Honda

To find out their satisfaction in accordance with their paying value

What is the problem of Hero Honda in the minds of consumer?

It also includes the income analysis and present Hero Honda


Study of different influence & attributes.

Page 87: Hero Honda Report


Marketing Research Process

Marketing research formally studies the specific problem and

opportunities. They may request a market survey, a product preference

test, a sales forecast by region or research on advertising effectiveness.

Marketing research is the systematic design, collection, analysis and

reporting of data and findings relevant to a specific marketing research.

Facing the co-effective

Marketing research involves 5 steps

Define the problem

Develop the research plan

Collect the information

Analyze the information

Present the findings

Page 88: Hero Honda Report

Present the findings

(1) Analysis regarding the occupation

This question was asked to know the occupation of consumer.

Occupation is directly related with the vehicle of the consumer. As per

survey of 100 samples analysis is as under.

Sr. Occupation No. of



1 Businessman 25 25%

2 Students 46 46%

3 Serviceman 15 15%

4 Professional 14 14%

Page 89: Hero Honda Report

From above survey, we can derive that out of 100 samples, 25 are

businessman, 46 are students, 15 are serviceman and 14 are professionals.

It means that 25% of businessman are using Hero Honda, 46% of students

are using Hero Honda, 15% of serviceman & 14% of professionals are

using Hero Honda. It means mostly students are preferring Hero Honda


(2) Analysis regarding age group

This question was asked to know the age of users. It means that

which group of age mostly uses the Hero Honda Bikes. As per my survey

the position is as under.

Sr. Age group No. of



1 18 to 20 45 45%

2 20 to 30 43 43%

3 30 to 40 9 9%

4 More than 40 3 3%

From above information, we can conclude that out of 100 samples.

Users of age group 18 to 20 are 45, between 20 to 30 are 43, between 30

Page 90: Hero Honda Report

to 40 are 9 and age group of more than 40 are 3. So from the chart we can

say that 45% of users are 18 to 20 age group, 43% are from 20 to 30 age

group, 9% are from 30 to 40 age group.

Page 91: Hero Honda Report

(3) Analysis regarding income

The question Ws asked to know the income of users of Hero Honda

Sr. Income No. of



1 5000 to 10000 48 48%

2 10000 to 15000 37 37%

3 15000 to 20000 9 9%

4 More than 20000 6 6%

As per survey of samples, we can derive that income group of 5000

to 10000 per month are main users of this Bikes. Out of 100 samples are

from 5000 to 10000 income, 37 are from 10000 to 15000. So the income

group of 5000 to 10000 is 48% & income group of 10000 to 15000 are


Page 92: Hero Honda Report

(4) Analysis regarding whose opinion value must while purchasing a


The question was asked to know that whose opinion value must

while consumer purchase a bike.

Sr. Opinion No. of



1 Family members 24 24%

2 Relatives 11 11%

3 Friends 25 25%

4 Personal views 37 37%

According to above results we can derive that the personal views

play the most important role at the time of purchasing Hero Honda.

According to results 37% have purchased bike on their views, 24% & 28%

have family members view and friends opinion.

Page 93: Hero Honda Report

(5)Analysis regarding features, which are considered while

purchasing a bike by the user

This question was asked to know that which are the most important

features of bike that play an important role to purchase a bike.

Sr. Features No. of



1 Brand name 42 42%

2 Cost of vehicle 9 9%

3 Fascinating looks 13 13%

4 Updated technology 3 3%

5 Fuel efficiency 25 25%

6 Low maintenance cost 8 8%

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The above table and graphical presentation shows that 1st rank is

given to Brand Name & updated technology has been given 2nd rank,

whereas fuel efficiency shows 3rd position, fascinating look stands 4th

while cost of vehicle & low maintenance cost is given 5 th & 6th rank


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(6)Analysis regarding information source

This question was asked to know from which sources respondents

come to know about Hero Honda.

Sr. Source if information No. of



1 Advertising 58 58%

2 Show room visit 8 8%

3 Friends & Relatives 31 31%

4 Dealers 3 3%

As per the review, current market media of information plays an

important a role to select the bike. According to above results, we can

derive that the advertising is the most powerful media to develop the

knowledge of product.

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(7) Analysis regarding most convincing features, which lead you to buy a bike.

Sr. Features No. of



1 Brand name 37 37%

2 Comfort & convincing 6 6%

3 Better safety & style 25 25%

4 Great power &pick up 29 29%

5 Comparative price 3 3%

The above table shows that 1st rank is given to brand name, 2nd rank

is given to great power & pick up, 3rd rank is given better safety & style,

while comfort & convincing &comparative price are given 4 th &5th rank


(8)Analysis regarding traveling of bike on average day.

Page 97: Hero Honda Report

The question was asked to know that the consumer drives how

many kilometers his vehicle on an average day.

Sr. Kilometer No. of



1 Less than 15 kms. 32 32%

2 15 to 30 kms. 24 24%

3 More than 30 kms. 44 44%

According to survey we can conclude that 44% users are driving

their bike more than 30 kms. On an average day and 46% users are driving

their bike less than 15 kms and 15 to 30 kms.

(9)Analysis regarding fuel economy

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The question was asked to know what mileage consumer gets from

their vehicle? Fuel economy of bike plays a vital role at the time of

purchase because so many customers are there whose ultimate

requirement is fuel economy.

Sr. Average No. of



1 Less than 50 8 8%

2 50 to 55 12 12%

3 55 to 60 18 18%

4 60 to 65 42 42%

5 More than 65 20 20%

As per the table & graphical presentation, we can say that 42% of

users get 60-65 average from their vehicle & 20% of users get more than

65 average from their vehicle. According to survey out of 100 samples

most of the users get good average from their vehicle.

(10) Analysis of factors contributing to success of Hero Honda

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The question was asked to know that which factor has played

dominating role in success of Hero Honda or how brand Hero Honda is

perceived in consumer’s mind. Through the results, company can know its

strength & the areas where improvement is required.

Sr. Factors No. of



1 After sales service 11 11%

2 Stylish outlook 45 45%

3 Environment friendly 12 12%

4 Advanced technology 32 32%

The above table & graphical presentation shows that 1st rank is

given to stylish outlook with 45%, advanced technology has been ranked

2nd with 32%, whereas environment friendly feature shows 3rd rank with

12%and at last after sales service stands at 4th position with 11%.

(11) Analysis regarding latest models of Hero Honda Limited

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Generally personal liking & disliking affects to the choice of

different models. This question is asked to know that which model is more

preferred by the users, because every human being has their own choice.

Here survey position is given.

Sr. Models of Hero Honda No. of



1 Glamour 12 12%

2 Achiever 8 8%

3 Karizma 5 5%

4 Splendor 31 31%

5 CD 100 DLX 18 18%

6 CBZ 15 15%

7 Ambition 3 3%

8 Passion 8 8%

From the above result, we can say that most of the people have

splendor & users of CD 100 DLX are also high.

Limitations of Study

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The research report suffers from many limitations, as all the

resources for carrying out research were limited. Some limitations are

given as under.

(1) It is only confined with Rajkot city, so the coverage is very narrow.

(2) The data collection is done only through questionnaire. Thus, it

lacks the support of personal interview and observation method.

(3) Moreover questionnaire consists only 12 questions. For detail study

more information is required.

(4) It is a survey of only 100 respondents. Sample size is only 100,

which is very small to take strategic decisions.

(5) Time constraints and limited number of questions make it difficult

to have required information from customer.


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On the basis of project work of Hero Honda Limited undergone at

Perfect Auto Service, it can be concluded that the position of the Hero

Honda Limited is corporate field is very strong. The well-experienced,

efficient and industrious sales force is the strength of it. The value of Hero

Honda Limited’s vehicle is more than that of competitor’s.

Sophisticated mass production technology including the latest

machinery and equipment for material handling, precision high volume

machines, robotic welling automated painted and conversed vehicle

assembled them to rule the market amongst others.

Each vehicle has to pass through a lot of quality control checks.

Thus such a faculty does not only consumer tooling which meet precise

standards but also reduces the lead-time for introducing maker model.

Quality control is exercised in every good engineering company and with

Hero Honda it appeals to be way of life.

All the Hero Honda bikes have strong and nice engine and it will

obey the pollution control rules and regulations. All the products of Hero

Honda have made an agreement with Japan’s Honda Company for the

development of four-stroke engine.

At present Hero Honda Limited is enjoying monopoly in the fields

of bike. It is trying its level best to secure more market coverage and

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trying to introduce new products to cover international market and can

compete with world’s giants in motorcycle manufacturers.


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Hero Honda Limited has high qualified, well-experienced and wide

experienced executives, who always try for giving their best. Though

following are the main suggestions according to my knowledge.

(1) In recent time there is high crisis of fuel like petrol, diesel, and etc.

Therefore company should research for alternative of this fuel like

solar energy or LPG

(2) Sometimes it happens that the person who wishes to buy

motorcycle, but he cannot buy it because of higher prices of

motorcycles, therefore the company should design motorcycles of

lower cost so customer can afford it. As against there should be not

more changes in technology of motorcycles.

(3) It happens that in some region or city the demand of their product is

high and in some region or city their demand is low. Therefore the

company should try to have research for it, that why such things

happened and take proper measures according to satisfaction.


Page 105: Hero Honda Report

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By: Philip Kotler

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