MARKETING OF HERO HONDA MOTORCYCLEWITH SPECIAL REFERENCE TO HERO HONDA

SPLENDOR PRO- a case study of ‘Mythri Motors’, Shivamogga.

CHAPTER CONTENTSChapter – 1INTRODUCTION

Introduction Objectives of the study Need of the study Scope of the Study Methodology Limitations Chapter Scheme

Chapter – 2COMPANY PROFILE

Hero Honda's Mission Hero Honda's Mandate Board of Directors Key Milestones of Hero Honda

DEALER PROFILE

1

Chapter – 3PRODUCT PROFILE

Hero Honda Splendor Pro Technical specifications of Hero Honda Splendor Pro

Chapter-4

HISTORY OF TRANSPORTATION AND MOTORCYCLES

History of Transportation Development of Transportation Automobiles History of Motorcycle The Development of Machines Manufacture of Two-Wheelers in India Future for India Two Wheeler Industry

Chapter - 5

SURVEY ANALYSIS AND INTERPRETATION

Chapter – 6

FINDINGS, SUGGESTIONS AND CONCLUSION

Annexure Questionnaire Bibliography

2

Chapter – 1

INTRODUCTION

Introduction

Objectives of the study

Need of the study

Scope of the Study

Methodology

Limitations of the Study

Chapter Scheme

3

INTRODUCTION

Introduction

The two-wheeler industry has recently witnessed a reversal in its

fortress. And the sharp rise in demand for two –wheelers during the few

months has fuelled unbridled optimism about the countries. But the

industry it self would do well to adopt a more restrained posts we in its

recently rediscovered salubrious environment and learns some lessons

from its harrowing journeys of the past few years. For riding on two-

wheelers rough terrain can be pretty tricky business.

During the first two decades of independent India the two

wheelers industry has more or less monopolized by two or three major

manufactures with are assured market people waited for lager period to

get a vehicle there by restricting their choice. In the seventies, there was

a drastic increase in the petroleum price in the international markets.

This led to the development of fuel economy vehicles in Japan.

Government of India in 1980 liberalized license of

manufacturing of two-wheelers vehicle in large scale with foreign

collaboration.

India has emerged as a global giant in the two-wheelers

industry. It is today the largest market in the worked with domestic of

over 2005 20 lack venial in.

However, today after half of a decade of explosive growths the

industry is moving into consolidation phase characterized by short-term

stagnation competition.

4

The future prospects for the industry remain extremely bright.

This is on account of: -

a. A steady of population to urban carters

b. A growing middle loss and lack of an adequate public transportation

system.

Within the two-wheeler market, the scoter segment has shown

maximum growth primarily at the cast of mopeds while the motorcycle

segment has maintained a slow but steady growth. However, in the new

economic environment this tread may also change. In one hand, the

demand for mopeds and minifies (like Hero puck M80 etc,) is expected

to increase given the lesser purchasing power of the consumer, coupled

with the higher price and fuel cast for scooter and motorcycles

In the, modern world the two-wheelers have become so

popular that it is demand to be the best means of transportation in city

infect it has become a fashion to ride the two-wheelers in city some take

it fir fur and other transportation from one corner to another.

This project report attempt to bring out details regarding history,

achievements growth of the Hero Honda motors limited and also

attempts have been made to during out details regarding history of

transportation and history of improving and models, competition in

present market for motorcycles and also recent planning of two-wheeler

in India. More stress is given toward the case study of. Karthik motors.

Who is the authorized dealer for Hero Honda Motor cycles? Attempts

have also been made to assess the present market performances of

5

certain suggestions have also been given adopting suitable market

strategy.

Objectives of the study

To know about the different motorcycles in Shimoga city,

To analyses the sales performance of Hero Honda motor cycles by the

dealer of century automobiles show room Shimoga.

To assess the market strategy adopted by the dealer in Shimoga.

To analyses the general problem in marketing of motorcycles and

specific problem confronted by the dealer.

To final the factors those influence the selection of the products,

To know the customer attitude toward the products,

To give suggestions to improve strategy,

To evaluate the effectiveness of the marketing strategy in helping to

achieve organizational goal,

Need of the study

“Consumer attitude towards marketing Mix” has a great

role to play in the purchase decision, therefore it is necessary

for every marketing manager to try and understand the

“Consumer Attitude”. This could be helpful to the

manufacturer to understand the attitude of the consumer.

The manufacturer must consider the following while making thedecision and policies:

6

i. Tailor made product.

ii. It should be priced right.

iii. It must be standard and specific.

iv. It must be easy for handling and distribution.

v. It should reach the right consumer at the right time & at right

place.

Statement of Problem

Now a day marketing is characterized by capitation in every

field. There are number of products each having separate substitutes. A

manufacture has a Cleary identity what exactly the consumer needs and

what exactly the makes a product completely satisfy his needs and then

educate the consumer effectively to create a demand for the product.

This is evident from the marketing aimed at generating customs

satisfaction as the key to satisfy organization goals.

Now a day. Hero Honda price are highly comparing to other

motorbikes. Wherever we will develop our marketing strategy we must

improve some economical and performance of that vehicle because if

will help to the lower as well as middle level and create interest to such

type of people.

The modern consumer it’s intelligent enough to express exactly

what his requirements are and national enough to judge the requirement

of his needs. No manufacturer can think of a company is the sale of

7

goods rather then production. The customers needs have to be carefully

considered by the manufacture if he is to the top of the market.

This study fries to analyses the factors that influence the

consumer in selection of a two-wheeler while making a purchase

decision. The study also during to light the extort of satisfaction among

the owners of the Hero Honda motorcycles.

Scope of the Study

Shimoga is a commercial city with a population of 3.5 lacks.

The scope of the study is restricting to the consumer attitudes (behavior)

towards motorcycles in Shimoga city.

The two-wheelers have become necessity in the modern life. So

every person prefer motorcycles, which gives, better fuel consumption,

durability economical and safety.

The report includes he efforts that have been taken by Hero

Honda Motor cycle to improve the quality and push up the sales of Hero

Honda motor cycles.

The two- wheeler being a long lasting product the survey

includes the past purchase and few protective buyers of the product/

Methodology

Data collectionPrimary Data Secondary DataPersonal interview News paper

MagazinesCompany reports

8

Both primary and secondary data have collected to bring our this project

Primary data have been collected though the personal interview

from the respondents. The survey of the respondent the made on the

basis of random sampling method questionnaires had been issued to the

respondents to avoid unnecessary delay and to take filling test easy the

questionnaire were prepared in a structural name for the purpose of

analyzing the market performers of sealers, their sales analysis and other

details has been collected form the dealers of Karthi automobiles

Shimoga. Secondary data have been collected from the newspaper,

magazines and company reporters.

Limitations As there are nearly a 50% to 60% who buy the Hero Honda for

every month. These person’s samples may give an accurate. Beside this

survey was limited by time and financial factors.

The primary data collected through the questionnaire has it is own

shortcomings. Mainly because the respondents ware not very

responder’s clouded to be based with their reviewers the main reason

why some of the responders could not furnish the require information

comprehensively may be because of their poor knowledge. However an

attempt has been made to prepare as accurately as possible.

The study has restricted to users of motorcycles

The study has done within the Shimoga city limits

Samples chaser by me is 50 responders who are very small compare

the market size.

9

Due to the lack of constraints and shortage of anthers resources.

Chapter Scheme

Chapter-1 : Introduction Deals with Research Design

Chapter –2: Company Profile Gives the profile of the Hero Honda

Chapter-3: Product Profile Deals with the product selected for study

Chapter-4 : History of Motor Cycle

Chapter –5: Firm Profile Deals with the profile of Sree Karthik Motors,

N.T Road, Shimoga

Chapter –6: Survey Analysis Deals with the analysis of survey

conducted

Chapter –7: Survey findings, suggestions and conclusion Deals the

summary of survey conducted followed by suggestions and conclusion.

10

Chapter – 2

COMPANY PROFILE

Hero Honda's Mission

Hero Honda's Mandate

Board of Directors

Key Milestones of Hero Honda

11

COMPANY PROFILE

Hero Honda was first started in January 19, 1984 Gurgaon,

Haryana, India as a joint venture of the Hero group(India) and

Honda motor co. ltd(Japan). Hero Honda is India’s Number one two

wheeler company.

Hero Honda has been the world’s biggest manufacture of two

wheeler motorized vehicle since 2001, when it produced 1.3 million

motorbikes in a single year.

During the 80’s Hero Honda become the first company in

India to prove that it was possible to drive a vehicle without

polluting the roads. The company introduced new generation

motorcycles that set industry benchmarks for fuel thrift and low

emission.

Hero Honda product range today commands a market share of

48%, making it a veritable giant in the industry by way of

technology excellence, an extensive dealer network, and you have

one of most customer oriented company. Customer satisfaction and

high quality product the strength of Honda technology and hero

12

Honda groups dynamism has helped hero Honda motors limited

fortune and exceed limit.

Over 19 million hero Honda two wheeler tread Indian roads

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

Ireland and Sweden put together.

The joint venture between India's Hero Group and Honda

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

largest two wheeler company but also one of the most successful

joint ventures worldwide.

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

India to prove that it was possible to drive a vehicle without

polluting the roads. The company introduced new generation

motorcycles that set industry benchmarks for fuel thrift and low

emission. A legendary 'Fill it - Shut it - Forget it' campaign

captured the imagination of commuters across India, and Hero

Honda sold millions of bikes purely on the commitment of

increased mileage.

13

Over 20 million Hero Honda two wheelers tread Indian roads

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

Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since

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

a Hero Honda. Every 30 seconds, someone in India buys Hero

Honda's top -selling motorcycle – Splendor. This festive season, the

company sold half a million two wheelers in a single month—a feat

unparalleled in global automotive history.

Hero Honda bikes currently roll out from its three globally

benchmarked manufacturing facilities. Two of these are based at

Dharuhera and Gurgaon in Haryana and the third state of the art

manufacturing facility was inaugurated at Haridwar, Uttrakhand in

April this year. These plants together are capable of producing out

4.4 million units per year.

Hero Honda's extensive sales and service network now spans

over 3000 customer touch points. These comprise a mix of

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dealerships, service and spare points, spare parts stockiest and

authorized representatives of dealers located across different

geographies.

Hero Honda values its relationship with customers. Its unique

CRM initiative - Hero Honda Passport Program, one of the largest

programs of this kind in the world, has over 3 million members on

its roster. The program has not only helped Hero Honda understand

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

created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian

two wheeler market, Hero Honda is constantly working towards

consolidating its position in the market place. The company

believes that changing demographic profile of India, increasing

urbanization and the empowerment of rural India will add millions

of new families to the economic mainstream. This would provide

the growth ballast that would sustain Hero Honda in the years to

come. As Brijmohan Lall Munjal, the Chairman, Hero Honda

Motors succinctly points out, "We pioneered India's motorcycle

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

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

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HERO HONDA'S MISSION

Hero Honda’s mission is to strive for synergy between

technology, systems and human resources, to produce products and

services that meet the quality, performance and price aspirations of

its customers. At the same time maintain the highest standards of

ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in

excellence and helps the organization forge a unique and mutually

beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent

manpower, proven management, extensive dealer network, efficient

supply chain and world-class products with cutting edge technology

from Honda Motor Company, Japan. The teamwork and

commitment are manifested in the highest level of customer

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satisfaction, and this goes a long way towards reinforcing its

leadership status.

Board of Directors

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro Takedagawa Non-executive Director

8 Mr. Satoshi Matsuzawa

(Alternate Director to Mr. Takashi Nagai) Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

10 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent Director

12 Dr. Pritam Singh Non-executive & Independent Director

13 Ms. Shobhana Bhartia Non-executive & Independent Director

14 Mr. Sunil Bharti MittalNon-executive & Independent Director

15. Mr. Meleveetil Damodaran Non-executive & Independent

Director

16. Mr. Arun Nath Maira Non-executive & Independent Director

17

KEY MILESTONES OF HERO HONDA

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan

signed

Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the

memory of founder Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified

with ISO-14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the

memory of founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-

14001 by DNV Holland

18

Splendor declared 'World No. 1' - largest selling single two-

wheeler model

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,

Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7

million sales mark

Splendor has emerged as the World's largest selling model for the

third calendar year in a row (2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third

consecutive year.

Crossed sales of over 2 million units in a single year, a global

record.

Splendor - World's largest selling motorcycle crossed the 5 million

mark

New motorcycle model - "CBZ*" introduced

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Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

2007 Hero Honda is the World No. 1 for the 6th year in a row

New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched

20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'Splendor Pro' launched

25 million production milestone achieved

CD Deluxe lauched with power start feature

New 'Glamour' launched

New 'Glamour Fi' launched 2009 Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark

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New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

2010

Hero Honda Passion Pro

Hero Honda Splendar Pro

Hero Honda NXG

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PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

2010 Company of the Year awarded by Economic Times Awards for

Corporate Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to

Splendor

NDTV Profit Car & Bike Awards 2010 -

Two-wheeler Manufacturer of the Year CnB Viewers' Choice Two-wheeler of the Year (Karizma

ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the

Year Awards 2009

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector bythe Dun & Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

22

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda

Wins the Coveted "NDTV Profit Business Leadership Award

2008"Top Gear Design Awards 2008 - Hunk Bike of the Year AwardNDTV Profit Car India & Bike India Awards - NDTV

“Viewers’ Choice Award” to Hunk in Bike categoryIndia Times Mindscape and Savile Row (A Forbes Group

Venture) Loyalty Awards - “Customer and Brand Loyalty

Award” in Automobile (two-wheeler) sectorAsian Retail Congress Award for Retail Excellence (Strategies

and Solutions of business innovation and transformation) - Best

Customer Loyalty Program in Automobile categoryNDTV Profit Car India & Bike India Awards - Bike

Manufacturer of the yearOverdrive Magazine - Bike Manufacturer of the yearTNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle Splendor Pro

2007 The NDTV Profit Car India & Bike India Awards 2007 in the

following category: Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

23

"Bike Technology of the Year" - Glam out PGM FI "Auto Tech of the Year" - Glam out PGM FI by Overdrive

Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring

Magazine

“Most Trusted Company” , by TNS Voice of the Customer Awards

2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of

the Customer Awards 2006.

2006 Adjudged 7th Top Indian Company by Wall street Journal Asia

(Top Indian Two Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of

world’s most reputed companies.

No. 1 in automobile industry by TNS Corporate Social

Responsibility Award.

Best in its class awards for each category by TNS Total Customer

Satisfaction Awards 2006: Splendor Plus (Executive)

CD Deluxe (Entry)

Pleasure (Gearless Scooters)Splendor & Passion - Top two models in two wheeler category by

ET Brand Equity Survey 2006.

24

Adjudged 7th Top Indian Company by Wall street Journal Asia

(Top Indian Two Wheeler Company).

Top Indian company in the Automobile - Two Wheeler sector by

Dun & Bradstreet - American Express Corporate Awards 2006.

Hero Honda Splendor rated as India's most preferred two-wheeler

brand at the Awaaz Consumer Awards 2006.

Certificate of Export Excellence for outstanding export

performance during 2003-04 for two-wheeler & three- wheelers -

Complete (Non SSI) by Engineering Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the

following category: Bike Maker of the Year

Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)

Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike

category

2005 Awaaz Consumer Awards 2005 - India's most preferred two-

wheeler brand by CNBC in the 'Automobiles' category.

Bike Maker of the Year Award by Overdrive Magazine.

ICWAI National Award for Excellence (Second) in Cost

Management 2004 in the private sector category by ICWAI.

10th Motilal Oswal Wealth Creator Award for as the most

25

consistent wealth creator for the period 1991-2005.

2004 Winner of the Review 200 – Asia's Leading Companies Award

(3rd Rank amongst the top 10 Indian companies).

GVC Level 1 (Highest Rating) by CRISIL for corporate

Governance.

Adjudged as the Best Value Creator - Large Size Companies 2003-

04 by The Outlook Money.

Corporate Excellence Award 2004 by Indian Institute of Materials

Management.

Adjudged as the Organization with Innovative HR Practices by HT

Power Jobs for HR Excellence.

ICSI National Award for Excellence in Corporate Governance

2004 by The Institute of Company Secretaries of India.

2003 Winner of the Review 200 - Asia 's Leading Companies Award

(3rd Rank amongst the top 10 Indian companies).

Most Respected Company in Automobile Sector by Business

World.

Bike Maker of the Year by Overdrive Magazine.

2002 Bike Maker of the Year by Overdrive Magazine.

Winner of the Review 200 - Asia 's Leading Companies Award

(4th Rank amongst the top 10 Indian companies).

26

Company of the Year of ET Awards for Corporate Excellence.

Ranked 4th in 'Overall Best Managed Company' category, ranked

3rd in 'Best Financial Management' and 'Best Operational

Efficiency' category, ranked 6th in 'Overall Best Investor

Relations' category, by Asia money.

Highest Wealth Creating Company of the Year Award by the

Money.

GVC Level 1 (Highest Rating) by CRISIL for Corporate

Governance.

2001 Bike Maker of the Year by Overdrive Magazine.

Winner of the Review 200 - Asia 's Leading Companies Award

(9th Rank amongst the top 10 Indian Companies).

Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Center for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the

category of Automobile & Tractor presented by Vice President of

India.

1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India.

1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India).

1991 Economic Times-Harvard Business School Award for Corporate

27

Performance to Hero Honda Motors Ltd.

28

DEALER PROFILE

Introduction

Mythri motors has been incorporated as a sole proprietor. The from

was establish in June 5th 2005 the firm is located in Shankarmutt

Road shimoga

Mr. Raghu C.V started their carrier with the establishment of

concern namely “Popular cycles”. Popular tyres up the year 2003

which did their grand father start. This concern is situated in By-

pass Annexes N.T Road Shimoga. Later in they started another firm

namely Sree Karthik. Ours showroom has a workshop & vacant

hall over our showroom measuring 14000.sq.ft. Also a vacant land

of approximately 40x200 is still vacant behind our building for our

future course of plans.

Our workshop is measuring 4000 sq. ft. we are carrying out around

80-90-motorcycle service a day with good revenue. The workshop

revenue is able to maintain our total expenditure of our business the

profit from the new vehicle will taken care of interest & other

investment the reputation of our workshop for good quality, timely

29

delivery & courtesies has added to our. Increase is sales & also the

increase in our reporting at our workshop.

As our reputation in sales, workshop is good we are confident

of lifting our firm to a greater new height.

Capital structure of the firm

Mr. Raghu.C.V contributed the total sum of Rs 9,00,000

for the establishment of the firm as deposited in the company is Rs-

25, 00,000 was borrowed form canara bank S.M circle shimoga this

fund was used for purchase of spare parts and other expenses of the

showroom.

From 2000-2001 it expended to 1.2crore

2001-2002 it expended to 1.5crore

At . present year 2008-2009 it expended 2.3 crore

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Infra structure Facilities

Land and building

The firm has our land whose are in 13000 sq.ft. Including

showroom, workshop, spare parts section

Power:

The total electric used by the firm is 400 units per month and K P T

C L supplies the same

Machinery

The firm is well equipped with all required tools. These are

required for the tools in the firm are Rs 500000 in beginning. But

know it has that entire modern total which require in present day is

Rs 100000

Office staff of the firm

The office staff includes.

1. Manager (Managing partner)

2. Sales executive’s

31

3. Office in charge

4. Accountant

5. Store keepers

6. Two clerks

7. Computerizes

8. Typist

9. Receptionist

ORGANIZATION CHART

32

Managing Director

Sales Incharge

SparesIncharge

WorksManager

Accounts Incharge

ServiceAdvisor

Sales Person

1 computeroperator

3 staff1 computer

operator

3 service supervisor

Mechanics& Helpers

2 staff

The marketing mix strategy of the firm

Marketing is analysis planning and controlling the firm

customer and the resources policies, activities with a view to satisfy

the needs and wants of the chaser customs can be attracted by the

following four ways namely

1) Product

2) Price

3) Promotion

Or of an article in terms of money. Without it we cannot buy

or sale any thing price of a product consists of the physical produce

product plus the bundle of expectations. The product should be

worth the price only then would be the consumer bean satisfied.

Thus is case of the Hero Honda motor limited they have fixed

reasonable prices for their vehicles and thus great demand in the

market.

Promotion It is an activity connected with the promoting the sales. It

may also mean market communication; Promoting involves

advertising personnel dealing dealers and soles promotions

advertising mean nothing but a paid form of non-personnel

preservation and promotion ideas. Good services by an identified

sponsor It is a form of publicity. Soles promotion plans are required

33

to attract the attention of the consumer and created a demand for the

product.

Advertising planning at Sree Karthik

The advertising policies adopted by the Sree Karthik are as

follows:

1) News advertisement

2) Demonstration of the vehicles in rural areas through mobile

service van

3) Organizing sports of other cultural activities

4) Recently by the cable TV advertisements

Distribution

It is the flow of goods from the producers or the

manufactures to the ultimate consumers distillation canned

represent a chain of middlemen participating in the transferring of

goods some of the channels are:-

a) Manufactures-whole sales-Retailers- consumers

b) Manufactures- sales man-Dealers – consumers

c) Manufactures-Retailers-consumers

d) Manufactures-consumers

In case of Sree Karthik they still the products after receiving

from the manufactures that is Hero Honda limited. As it is the

authorized dealers of Hero Honda in Shimoga district

34

Form sub-Dealer places

Shimoga

Harihar

Shikaripuar

Honnali

Bosavapatna

Hebri

Table shows yearly sales of the Sree Karthik

Year Sales

2005-2006 5,4002006-2007 6,7002007-2008 7,5002008-2009 7,9002009-2010 8,5002010-2011 8,900

35

Chapter – 3

PRODUCT PROFILE

Hero Honda Splendor Pro

Technical specifications of Hero Honda Splendor Pro

36

PRODUCT PROFILE

General information

Model: Hero Honda Splendor Pro

Year: 2011

Category: Sport

Rating: 59 out of 100. Show full rating and compare with other bikes

Engine and transmission

Displacement: 97.50 ccm (5.95 cubic inches)

Engine type: Single cylinder, four-stroke

Power: 7.70 HP (5.6 kW)) @ 7500 RPM

Torque: 8.04 Nm (0.8 kgf-m or 5.9 ft.lbs) @ 4500 RPM

Compression: 9.0:1

Fuel system: Carburettor

Fuel control: OHC

Ignition: Digital CDI

Cooling system: Air

Gearbox: 4-speed

Transmission type,final drive:

Chain

Clutch: Wet, multiplate

Chassis, suspension, brakes and wheels

Frame type: Tubular double cradle

Front suspension: Telescopic hydraulic shock absorbers

Rear suspension: Swing arm with 5 step hydraulic shock absorbers

Front tyre dimensions:

2.75-18

Rear tyre 2.75-18

37

dimensions:

Front brakes: Expanding brake (drum brake)

Front brakes diameter:

130 mm (5.1 inches)

Rear brakes: Expanding brake (drum brake)

Rear brakes diameter:

130 mm (5.1 inches)

Physical measures and capacities

Dry weight: 109.0 kg (240.3 pounds)

Power/weight ratio:

0.0706 HP/kg

Overall height: 1,040 mm (40.9 inches)

Overall length: 1,970 mm (77.6 inches)

Overall width: 720 mm (28.3 inches)

Ground clearance: 159 mm (6.3 inches)

Fuel capacity: 11.00 litres (2.91 gallons)

Reserve fuel capacity:

1.00 litres (0.26 gallons)

Other specifications

Starter: Electric & kick

Light: 35W/35W halogen headlights

Electrical: 3 Ah battery for kick start and 4 Ah battery for self start.

Seat: 2-person seat

Color options: Blue, black, red, orange, grey, maroon, silver

Comments: Optional self starter adding 4 kg to the weight. Sold in India.Hero Honda is joint venture between India´s Hero Group and Honda.

38

39

The features of the new Splendor Pro will include:

Power Start

All new APDV engine with more power

Higher fuel efficiency

Improved headlight intensity – at lower speeds ( high output ACG )

Maintenance free battery

Passing switch – for easy overtaking & conspicuity

Tyre with wider crown radius for better handling

Rear cushion with 5 step adjustments

New colours & stripes

New refreshed front visor

Tough Silver colour engine cover

Commenting on the launch, Mr. Anil Dua, Sr. Vice President (Marketing &

Sales), Hero Honda Motors Ltd said, “Splendor is the most trusted and

popular two-wheeler brand in the industry. Keeping in mind the varied

needs of customers, it has been our constant endeavour to innovate in

the deluxe category to build a range of Splendor offerings while

40

strengthening the trust of our valued customers. With the all-new

Splendor Pro, we have brought in a fresh round of excitement to our

customers. This bike re-defines performance, safety, toughness and

aesthetics in this segment. We are confident that Spendor Pro will further

augment our growth in the deluxe segment.”

“We are also looking forward to maintaining the all-time high monthly

sales numbers of the past few months. We have lined up a few more

exciting launches in the run-up to the festive season.” He added

Designed with an attention to detail, the Splendor Pro features

improvements in technology, design and aesthetics towards ensuring a

hassles-free drive for the rider.

Incorporating the New-Gen APDV engine with Advanced Pro-series

Digital Variable Ignition System, the new Splendor Pro offers greater

power of 7.8 Ps. Combined with improved safety features ranging from

toughened steering head for all terrains, and tyres with wider crown for

improved handling, the new Splendor Pro delivers on performance and

reliability. The bike also features a wide range of aesthetic improvements

such as new muffler cover, new refreshed front visor, new handle holder

and key design and Tough Silver colour engine cover.

The new Splendor Pro is attractively priced at Rs 39,950/- (spoke drum

kick, ex-showroom Delhi) and Rs 41,950/- (spoke drum self, ex-showroom

Delhi). It is being made immediately available through Hero Honda’s wide

network of over 4200 sales and service points across the country.

Hero Honda’s Splendor brand was introduced in the Indian market in the

year 1994 and since then the brand has become a living legend in the

motorcycle industry in the country, and indeed across the globe, winning

41

the unwavering trust of the customers. The bike has grown to be

synonymous with reliability, performance and value. Since its launch, the

Splendor range has been regularly updated to meet customers’ evolving

preferences and tastes.

Shades available in Hero Honda Splendor Pro

Splendor Pro is available in seven shades:- Granite blue- Black with purple stripe I- Black with purple stripe II- Black with purple stripe III- Black with silver stripe- Cloud silver- Candy red

Variants of Hero Honda Splendor ProHero Honda Splendor Pro is available in 2 variants:

42

- Splendor Pro with kick start and spoke wheels- Splendor Pro with self start and alloy wheels

CHAPTER-4

HISTORY OF TRANSPORTATION AND MOTORCYCLES

History of Transportation

Development of Transportation

Automobiles

History of Motorcycle

The Development of Machines

Manufacture of Two-Wheelers In India

Future For India Two Wheeler Industry

43

HISTORY OF TRANSPORTATION AND MOTORCYCLES

History of Transportation

Transportation means movement of and his maters from

one place to another in any part of earth It is the convergence or the

act of transporting from times immemorial main has been able to

move him powerfully influenced by easy ink surface of the earth/

In spite of adverse circumstance man by hammering

nature whether it be directly or indirectly has explored and

exploited the resources of the earth, the wheels the sails, the steam

engine the internal combustion. Engine the electronic motor are the

few landmarks in transportation. The greatest break through man in

the technology of flight promise of 21st century approached to be

copped by the rocket engine. By this, main was free from

dependence or earth atmospheres and permitted him to visualize

traveling to the other places.

44

Development of Transportation

Before the close of 19 th century, although for two decades,

there was much experimentation in construe of vehicles powered by

the interment combustion engine. The full impact felt by forms of

transport was product. Before the first world road transport, which

had begun to encroach on rail and water great strides between the

was and challenged rail at the chief of both passenger and goods in

the 2 decades following world war II

Automobiles

A self-propertied passenger vehicle designed to be operated

on ordinary roads may be called an automobile. According to the

services rendered the general motor vehicle may be classified into

several types namely motorcar, motorcycle, scooter etc. All these

vehicles certainly require fuel. This fuel may be either pectoral or

diesel. They are the essential fuel required for automobile

operation. But in the present circumstances, as is knows to all the

natural resources of petrol and diesel being consumed rapidly which

45

alert us the need of a new fuel for which experimentation is going

on for instance the solar energy is trying to be experimental with.

History of Motorcycle

A motorcycle is a vehicle, which the principles of bicycle

and the internal combustion entire are combined. The internal

combustion engine generally is a gasoline engine. The term covers

a range of machine form 50cc piston displacement or below

(mopeds or motorcycles) to 100cc multiple cylinder models of

which the U.S Harley – Davidson and India V T wins, the British

1000cc square 4 aerial, and the 4 cylinder. Italian M.V Augusta is a

representative. The term motorcycles also covers motor scooters,

which have power until from 50cc to 250 cc.

An Englishmen, Edward butter the first motorcycle in 1884

but the first motorcycle to appear publicity was one built by

“Gottlied Daimer” of can start, Wurttemberg of germane in 1885

Motorcycle did not attain even slight public popularity until toward

the end of 19th century. French and Belgium designers were among

the markets of the practical motorcycle engines and motorcycle

46

increasing steadily throughout the first 30 years of the20th century.

In both world wars, motorcycles were widely used for military

purposes and after World War II, an appreciation of the remarkable

revival of public interest in motorcycle, mopeds and scooter. In the

united states the year after the world be compared with that western

Europe Although at times, the continuing popularity of two-

wheelers transport has been questioned, there is no doubt that it was

firmly established in the second half of the 20th century the motor

provided a means of individual powered transport, combining

reliability, economy and comfort young people had always been

quick to appreciate its advantages moreover the sporty and travel

appeal of the two-wheeler expanded yearly

The Development of Machines

The development of motorcycle was steady in the formative

years positioning of the poor unit varied but by 1910, designers had

recognized that the most practical point was two and central later

motorcycle or were attached by long belts and plates to frames.

47

Frames were building up from steel tubing joined by either welding

or barging.

Early single cylinder commercial motorcycle persisted in the

second half of 20th were four strokes, in which values were

employed with the compressing firing in one direction (upward or

down word) only many below 250cc capacity were 2 strokes

through a succession of passage wall and parts, The European

method of rating an engine is by the volumetric. The house power

rating is used in some countries, including the United stares a rough

equivalent in between 8to10 HP per 100cc for models with 2 to 4

cylinders.

Multiple cylinders ensure smooth running and because light

weight models cheap to run and easy to maintain two of the

foremost British design the four strokes 192cc water cooled

velocity LE and the 2 strake 250cc aerial had was for themselves

for most positions combustive and ignition were greatly improved

over even the method of years earlier and bore title resemblance to

the sedimentary forms on pioneer motorcycles the combustive was

48

a compact and reliable instrument measuring. The sparsely the

prepositions of fuel and able to serve indefinitely without major

adjustments. Elementary tube ignition had given way to advance

forms of electrical generation by means of magnetic or an induction

coil

The magneto was either separate price of mechanism driver

from the engine by means of gearing a chains or more integral with

the flywheel.

Manufacture of Two-Wheelers In India

Most of the two-wheelers industries do not manufacture all the

parts, usually orders are placed the best industries which have

capacity to manufacture the right quality and quality in a specified

time certain industries purchase spare form small industries as per

the instructions given by the government to develop the small

industries.

The two-wheeler industry manufacture only the main parts

like engine, gear unites wheel drums etc. where as they purchase

49

combustor form worlds best manufacture like “SPACO”

“MICARBO” “ORBITAL” Because this is the part which helps for

the better mileage. Other parts like tyres, tubes, bearings,

speedometer, shack absorbers horns, bulbs, cables etc, are

purchased from certain recognized industries. Certain other things

like wiring plastic and fiber parts seats etc are purchased from

small-scale units.

In the forgoing steel sheets are converted into this needs like

body cover chassis and other welded by electrolysis process, it is

then painted. The parts are then sent to assembly section. The

vehicles are then taken into test ride on test tracks. If the vehicles

perform. Well to the standards, the vehicle is ready for dispatch.

Future For India Two Wheeler Industry

Two wheelers in India is a glowing market which no doubt by

the turn of country will become the largest market users look

forward to area of choice, as they have an option form several

50

highly quality products which are priced and available at reasonable

cast.

As the “eighties” faced a tremendous growth of two-wheeler

over 4 fold jumping from 4.20 lakh in the year 1980 to 1724 laks

1989. But the Nineties

“Hold out great challenges ahead. If eighties was the decade for

quality “mine these could be the decade for quality. Engines with

higher fuel efficiently low maintenance cost excellent after sales

services penetration in to semi urban and rural arrears are the

important factors for survival customers is a ware of the latest

technology of the products the buys.

51

Chapter – 5

CONSUMER ATTITUDE TOWARDS TWO WHEELERS

Consumer attitude

Determinant of buyer behavior, Internal factors

Conclusion

52

CONSUMER ATTITUDE TOWARDS TWO WHEELERS

Consumer Attitude

Consumer attitude is comparative a new field of study. It is the

attempt to understand and predict human action is the buying role. It has

assumed growing importance under market oriented or customer

oriented market planning and management buyers market for many

products and the growth of consumerism and consumer legislation since

1960 have created special interest in buyer behavior and the formulation

of marketing mixed to responds favorable buyer behavior in the market

place.

Buyer behaviour is defined as all psychology social and physical

behaviour of potential, customer as they become aware of evaluate

purchase consumer and tell other about “product and service “ each

element of this definition is important.

Buyer behavior involves both individual ( psychological) process and

group (social) process.

Buyer behavior is reflected from awareness right through past

purchase evolution indicating satisfaction or non satisfaction from

purchase.

Buyer behavior includes communication, purchasing and

consumption behavior.

Consumer attitude is basically social in nature. Hence, social

environment plays an important role in shaping buyer behavior.

Buyer behavior includes both consumer & industrial buyer behavior.

53

Buyer behavior includes the acts individual directly involved in

obtaining and using economic goods and service including sequence of

decision process that processed and determine three acts. Actual

purchase only a part of the decision process. In buyer behavior we

consider not only why, how and what people buy but and under what

condition the purchase is made understanding of buyer behavior is

essential in marketing planning and performance.

The final analysis of the buyer behavior is one of the most

important key to successful marketing

Determinant of buyer behavior

Buyer behavior is a process, consumers are subjected to various

stimuli, therefore the consumer mind regarded as a block box as we

cannot see what is going on in his mind he response to the stimuli or

inputs and may purchase some products 2 service of interest to the

marketing managements.

The model of behavior is a stimulus responds model. Response

may be division to purchase or not to purchase.

Under the system views of buyer behavior have :

1. Inputs

2. Processing

3. Outputs

4. Feed back loop

The object of the process is of course expected satisfaction or

service.

54

Buyer behavior is an orderly process where by the buyer interest is

with his or her environment making a purchase decision on product.

1. Internal or individual factor are psychological factor such as :

a) Motivation

b) Perception

c) Bearding

d) Attitude

e) Personality

2. Socio- culture factors are :

a) Family

b) Reference group

c) Social class

d) Culture

3. Environmental factors are :

a) Economics

b) Technological legal and political factors

4. Buyer is the “comer- stone” of marketing strategy. Firms must

understand buyer behavior to achieve the defective of customer

satisfaction buyer mind is called the black box inputs are processed in

this mind and buyer response become the output of the psychological

process.

The output in the form of buying a product is the objective of the

market but this project is only a study of consumer psychological

behavior.

55

Chapter-6

SURVEY ANALYSIS AND INTERPRETATION

56

SURVEY ANALYSIS

This Chapter deals with the analysis of data collected from the

survey of customer opinions about the Hero Honda CBZ Motorcycle.

The data has been analyzed with reference to the stages involved

in the purchase decision process of consumers vise; need arousal,

information search, and evaluation of alternatives, purchase decision and

post purchase behavior of consumer.

In the case of study on consumer behavior the respondents play

vital role. Individuals and groups who satisfy their needs by obtaining

products or value from enterprises involved in the manufacture of such

products or provision of such services are called consumers.

In this chapter, we have analyzed the data of respondents. This

would necessitate obtaining the accurate demographic profile of the

respondents.

A convenient sampling technique was made use of for this survey

and the number of respondents chosen was 50.

57

1. Respondents Age Group

The following table reveals the classification of Respondents

according to their age group.

Table-1

Classification of respondents based on age.

Source: Field survey

Table-1 indicates the age group of respondents out of which 16%

of total belong to the age group of below 35 years, 20% respondents

belong to the age group of 25 to 30 years. 42% of respondents belong to

the age group of 30 to 35 years and the remaining 22% belong to the age

group of 35 years and above.

Age Groups No of Respondents PercentageBelow 25 8 1625 to 30 10 2030 to 35 21 4235 & above 11 22Total 50 100

58

Graph shows classification of respondents based on age

59

2. Educational qualification of respondents

The Educational qualification of respondents has been classified

into 5 categories as shown in the following table.

Table-2

Classification of respondents based on Education

Source: Field survey

Table-2 indicates the educational qualifications of respondents.

Out of total No. Of Respondents 42% are educated up to graduation,

14% up to PUC 8% up to SSLC, 32% of respondents educated up to post

graduation and only 4% of respondents have other qualification.

Education Level No of Respondent PercentageUp to SSLC 4 8PUC 7 14Graduates 21 42Post Graduates 16 32Others 2 4Total 50 100

60

Graph shows educational qualification of respondents

61

3. Occupational pattern:

Occupation refers to the kind of work with which an individual

becomes completely engaged. It is also denotes the habitual

employment, profession, craft or trade of an individual. It is an

instrument of livelihood and an essential factor in society.

In our study the occupation of the respondents has been classified

into 5 categories as shown in the table-3

Table -3

Classification of respondents based on occupation.

Source: Field survey

Table 3 and clearly indicates the occupation of respondents. Out of

the total number of respondents 26% belongs the business class, 10%

Occupation No. Of Respondents PercentageGovt. Employee 6 12Private Employee 19 38Business man 13 26Agriculture 7 14Any other 5 10Total 50 100

62

belongs to the student’s folk, 12% of respondents are government

employees, 38% belongs to private employees and the remaining 14% of

respondents are agriculturist.

Graph shows classification of respondents based on occupation

63

4. Income Group (Per Annum)

Income is considered to be one of the main determinants of one’s

social and economic position. The statuses of individual differ on

account of income variation within the same occupation. It is the

income, which reflects the standard of living in the society. The

following table represents yearly income of the respondents.

Table 4

Classification of respondent Based on income

Source: Field Survey

Table 4 indicates income group of respondents, out of the total

respondents 12% belongs to the income group of Below Rs 5000, 24%

belongs to the income group of 5000 to 10000, 36% belongs to the

income group of 10000 to 15000, and remaining 28% belongs to the

income group of 15000 to Above.

Income Group No. of Respondents PercentageBelow Rs 5000 6 125000 to 10000 12 2410000 to 15000 18 3615000 and above 14 28Total 50 100

64

Graph shows classification of respondent Based on income

65

5) Different brands of motorcycles possessed by the respondents

The fallowing table respondents the owners of different brands of

motorcycles.

Table -5

Owners different brands of motorcycles.

Difference brands No. of

Respondents

Percentage

Hero Honda 20 40Royal Enfield 15 30TVS Suzuki 10 20Bajaj 5 10Total 50 100

Source: field survey

Table-6 indicates the owners of different brands of vehicle, out of

total respondents 40% respondents owned Hero Honda. 30%

respondents owned Royal Enfield, 20% of respondent s owned TVS

Motorcycles and remaining 10% of respondents owned Yamaha brand

vehicles.

66

Graph shows owners different brands of motorcycles

67

6) Sources of vehicle information

There are Number of sources of gathering the information about a

product or model by the prospective buyer such as mass medias,

pamphlets, mouth to month campaign and others. The degree of impact

of these sources of information and buyers purchase decision making is

illustrated in the below table-5

Table-6

Sources of information about the vehicle

Sources No. of

Respondents

Percentage

Advertisement 15 30Observations 9 18Company image 17 34Friends & relatives 6 12Publicity 3 6Other sources 0 0Total 50 100

Source: Field survey

Table-5 clearly states that the sources of vehicle information is

largely by company image that is 34% through advertisements 30%

friends and relatives 12% by observation 18% publicity i.e. mouth to

mouth campaign and general trend is only 6%

68

Graph shoes sources of information about the vehicle

69

7. Facilitates expected from the dealer.

Table-7

Facilities expected from the dealers

Source: Filed survey

The above table indicates the various facilities expected by the

customers from a dealer the table clearly shows that large number of

customers feels after sales service is very essential and needed, it amount

to 34% of the total respondents. The other important facilities that tare

expected by the customers from the dealers are installment. Facility,

amounts to 38%, periodic checking 8% and the guarantee, which

amounts to 4%. The other facilities expected by the customers are quick

Facilities Respondents PercentageAfter Sale services 17 34Periodic checking 4 8Installment facility 19 38Guarantee 7 14Others 3 6Total 50 100

70

service; good spare parts execution etc, which amounts to 6% of the total

respondents.

Graph shows facilities expected from the dealers

71

8. Analysis of Splendor Pro performance

Table – 8

Analysis of Splendor Pro performance

Factors

No of Respondents

TotalGood Fair Bad

Mileage 40 5 5 50After Sales service 12 23 15 50Durability 27 19 04 50Price 6 30 14 50Maintenance 15 26 9 50Design & outlook 35 12 3 50Convenience & safety 25 23 02 50Performance 36 14 0 50

72

Graph shows analysis of Passion performance

73

Buying Decision Process

Consumer, buyer behavior is a process involving a series of

related and sequential stages of activities. The process begins with

the discovery and recognition of an unsatisfied need or ant. It

becomes as drive. Consumers begin a search for information,

followed by evaluation of alternatives and a purchase decision.

Then we have a period of post purchase behavior during which the

consumer evaluates the purchase and the satisfaction it is or is not

delivering. Let us now describe briefly the five steps in the purchase

decision Process.

1) Perceived want or desire

Buying process begins when a person begins to feel that a

certain need or desire has assign and it has to be satisfied, Needs

may be ignited by internal stimulus or some external stimulus called

a sign or cue. The intensity of want will indicate the speed with

which a person will move to fulfill the unsatisfied want.

2) Information search

The person will have to search for relevant information about

the brand, location and the manner of obtaining the product.

Consumer can tap many sources of information. E.g. family,

friends, neighbors, opinion leaders etc, markets also provide

74

relevant information through advert sign, dealers, and sales

promotion. We have also mass media like newspaper. Radio,

Television etc.

3) Evaluation of alternatives

Available information can be employed to evaluate thealternatives (Product or brands). This is the critical stage in theprocess of buying, particularly for costly goods. There are severalimportant elements in the process of evaluation.

A product is viewed as a bundle of attributes. These attributesor features are used for evaluating alternative brands.

4) Purchase Decision

While the consumer is evaluating the alternatives, He withdevelop, some likes and dislikes about the alternative brands. Thisattitude toward brands influences his insertion to buy, other factorsinfluence the intention to purchase are; social factors such asattitude of reference group members on whom he relies for finalselection. Situational factors like availability, dealer’s terms andconditions, falling prices due to recession, loss of job oremployment etc.

5) Post purchase behavior

Feedback information is important as far as the seller isconcerned. A brand preference naturally repeats sales to a marketer.A satisfied buyer is a silent advertisement. Is the purchased brandfails to give the expected satisfaction to the buyer, it affects thesales negatively. A satisfying experience of a buyer tends tostrengthen the brand preference.

75

Factors influencing in buying decision of two

wheelers

1) Mileage:

Majority of the respondents have considered mileage as a

very significant factor in influencing the selection of two wheelers.

The consumer who is assured of quality of products, then he looks

for minimum operational expenses. Even increasing price of

petroleum products has made the consumer to prefer the vehicles

with extra mileage.

2) Price:

The initial cost of the vehicle is another important influencing

factor in buying decision. This is especially important in a

developing country like India where many people struggle to take

both ends meet together.

Even discount offers, cash down payments, bearing the cost

of registration, insurance, etc, by the dealers have also influenced

the prospective buyers to take buying decisions of two wheelers

3) Appearance:

76

It is also one of the important which influences in selection of

two wheelers. Every motorcycle has its own appearance. A

motorcycle should be so designed that the consumers should feel

pride of owning it. The younger generation is influenced by this

factor.

4) Technology:

Technology plays a vitals role in selection of two wheelers.

Because it brings sophistication into life. It gives more and more

comfort features. So that easy to start, easy to ride, trouble free

performance is achieved.

5) Durability:

When the customer are paying for the product. As the two-

wheeler is a long-term investment. Durability of the bike is an

important factor which influences in buying decision

6) Resale value:

A few respondents have considered resale value of the bike is

an important factor which influences in purchasing. It is so because

few owners have the hobby of charging their vehicles often. The

government service and other employees have stressed more for this

factor and business group have not.

7. Colors:

77

Now a day’s customer desired to have their bike with

different colors. But they have expressed that they do not have

variety of colors choice. It is also an important factor in buying

decision because the customers are switch over to other motorcycles

when they’re desired colors of bike is not.

8. Less Repair:-

The two-wheeler is a vehicle, which is continuously used.

Each and every buyer expects trouble free performance. So, it is

also one of the important influencing factors while purchasing a

motorcycle.

9. Quality:

Now a day’s buyers are becoming quality conscious. The two-

wheeler is an assembly of various parts.

The quality of each and every part is essential in maintaining

the overall quality of the two-wheeler. Some of the respondents

have opines that quality of the motor cycle is also one of the

significant factors which influences in buying decision

10. After sales service:

78

After sales service rendered by the dealers is also one of the

influences factor while purchasing a motorcycle. People want to

purchase motorcycle at a showroom where after sales service is

very good and quick.

11. Safety driving:

Road grip and other technology of safe riding is a very

important factor influencing in selection of two wheelers. The

customer who is assured of quality of product, then we looks for

convenience of riding even increasing accidents of two wheelers

has resulted consumer to prefer motor cycles which are safe to ride.

12) Credit quality:

When ever the dealers offer credit facility. Then the customers

are gains to purchase motorcycles. Lower as well as middle class

people have stressed this factor as important while purchasing a

motorcycle.

79

Chapter – 7

FINDINGS, SUGGESTIONS AND CONCLUSION

80

Findings Suggestions and Conclusion

After analyzing the responses received from the Hero Honda

Motor Cycle users of different brands with care and thoroughness.

The fallowing conclusions have been drawn. Implementation of it

may lead to greater satisfaction of the needs and wants of

consumers as well as a larger market share and more profitable

result manufacturers.

Some findings have also been made for Hero Honda Splendor

Pro like Hero Honda Passion, Hero Honda CD SS, Hero Honda

Sleek, Hero Honda SPLENDOR, Hero Honda STR/ STD, Hero

Honda STR, DLX: Hero Honda CBZ DISC, CBZ GOLD, DAWN:

AMBITION (DRUM), AMBITION (DISC), AMBITION (DISC

WITH SELF), AMB 135, KARIZMA, Passion. Hero Honda Street

Joy etc. After studying the consumer behaviour of these

motorcycles as well as the users of other motorcycles.

FINDINGS: (Findings of motor cycles)

Summaries of the findings drawn are presented below.

Brand Popularity

Hero Honda Passion and Hero Honda Splendor motorcycles

are the most popular motor bikes and respondents are aware of its.

The other vehicles of the same company like, Hero Honda Sleek is

81

awareness when to Hero Honda Passion are having grater

awareness. Nowadays Passion is number on 1 in market and its

competitor TVS Victor and Boxer have grater demand in market the

other companies also realizing a competitive products in the market.

But Hero Honda Passion is the most popular motorbike

specially the younger generation.

Factors influencing brand choice

Most of the respondents are influenced by the popularity of

the motorbikes, advertisements other factors. Among the popular

motorbikes. Hero Honda is the only bike, which has more number

of users who were influenced by advertisements when compared to

the other va1iable popularity.

Influence of information on motorcycle

Company image advertisements and f1iends and relatives are

the chief methods of receiving information regarding two wheelers.

It can be concluded that there is a close relationship between these

three major - sources of information, Advertisement and friends and

relatives could have led them to try a different motor cycles.

Past is users of the reasons for changes

82

The chief reason for discontinuing being availability of better

alternative. Price is high when compare to other alternative,

interpersonal influence and decline in quality of spare parts.

Influence of advertisement

Audio-visual media has the greatest influence on the

consumer's awareness and purchase decision of 100 CC motorbikes.

It is followed by the printed media has the least impact.

The findings and conclusions drawn after analyzing the data

collected with reference to Hero Honda Passion are very popular

when compare to other 100 CC bikes, Because Hero Honda Passion

have own company image.

The chief product features, which influence brand choice in

the case of Hero Honda motorbikes, are quality durability, mileage,

technology and price.

The main factors, which influence the bran preference, are

company image among customer. Hero Honda motor limited is best

which is greater popularity of its vehicles.

83

Suggestions

From the findings and conclusions reached. After the careful

study of the data collected from the survey of consumers of Hero

Honda Passion the following suggestions are put forwarded.

Majorities of consumers are not satisfied with the price. Thus

research should be undertaken to reduce the price of the product.

Then this would lead to greater popularity of motorcycles and in

case reduce the price most of the customers like lower level people

also willing to buy it due to its comfort. And it satisfied in all ways

to all level of user's providing space for carrying the luggage, some

respondents are want is providing the space for carrying the

luggage.

Safety driving cost are the other factors in the order

preference thus it can been seen that safety driving that is road grip

of the vehicle while riding is considered as very important as

compared to it's cost.

The study has revealed that consumer's quality of

performance and mileage as the most important factors influencing

the selection of a two-wheeler.

84

Company image majority of the consider the company image

while purchasing the bike is an important as fuel economy of the

vehicle.

Many of the respondents have indicated that resale value of

the vehicle is important

Spare parts costs are very high compare to other vehicles

spare parts, The researchers should be under taken to reduce the

cost of spare parts the ultimately repair cost is low then this would

lead to greater purchasing activity of Hero Honda Passion.

Majority of the respondents suggested for the improvement of

fuel efficiency of the vehicle, quality reduction in price and better

after sales service.

Some of the respondents suggested for the improvement of

shock absorb bush of the vehicle. Because of shock absorb bush

quality is not good.

Some of the respondents suggested for the tank improvement

of petrol tank durability.

The recent trends should be considered while introducing new

motorcycle in to the market.

The above given suggestion, to some extent provide wealth of

information which it made use of could enable the manufacturers of

85

two wheelers to formulate a sound marketing strategy to increase

this sales to compete with other two wheeler companies and also to

increase the publicity and to get more profitable results.

Conclusion

The Hero Honda motorbikes are very popular in case of above

25-45 years age group rather than bellow and above this age

group.

The major buyers of Hero Honda Passion are from upper middle

class.

The Hero Honda motorbikes are very popular in case of business

class rather than the government service people.

Existing users influence majorities of the buyers.

Most of the buyers are influenced by the advertisement and

company image.

Majority of buyers give importance to mileage because of the

higher fuel cost.

Majority of the users are satisfied with these vehicles.

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Few users are not satisfied with the after sales service rendered

by authorized dealers.

Few or most of the users are not satisfied by safety driving

In Hero Honda Passion advertisement the catch world “The new

economy king” and has acquire the more number of buyers.

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Annexure

Questionnaire

Bibliography

88

Questionnaire

Dear Respondents,

I am a student of final year BBM studying in Dr. Ambedkar

College, Shimoga, As a part of my study, I have undertaken a project

report on “Marketing of Hero Honda motorcycle with special

reference to Hero Honda Splendor Pro” - a case study of “Karthik

Motors”, Shimoga.

I would be grateful if you could spare a few moments to fill this

questionnaire and give me some of your valuable suggestions, ‘the

information that is given by you will be used only for academic purpose.

Thanking you,

Yours faithfully

Mohammed Azharuddin

1. Name :

2. Address: ___________________

___________________

3. Age group

a. Below 25years [ ] c. 30 to 35years [ ]

b. 25 to 30 years [ ] d. 35years and above [ ]

4. Educational qualification.

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a. Up to SSLC [ ] c. Graduation [ ]

b. P.U.C [ ] d. Post Graduation [ ]

e. Any other (specify)---------------

5 Occupation

a. Govt employee [ ] c. Agriculture [ ]

b. Private employee [ ] d. Business [ ]

e. Any other (specify) ___________________

6. Monthly income.

a. Below Rs.5000 [ ] c. Rs.10000 to Rs. 15000 [ ]

b. Rs.5000 to 10000 [ ] d. Rs.15000 and above [ ]

7. Do you own a bike?

Yes [ ] No [ ]

8. If yes, name the brand.

a. Hero Honda [ ] c. TVS Suzuki [ ]

b. Bajaj [ ] d. Royal Enfield [ ]

e. Any other (specify) [ ]

9. Year of purchase_____________

10. Do you ride bike?

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a. Regularly [ ] b. Occasionally [ ]

11. You need two-wheeler because of

a. Necessary [ ] c. Prestige [ ]

b. Style [ ] d. Any other specify [ ]

12. How do you come to know about the vehicle?

a. Advertisement [ ] d. Company image [ ]

b. Friends and relatives [ ] e. Publicity [ ]

c. Observation [ ] f. any other-------------

13. If you have come to know through advertisement please name of the

media.

a. News paper [ ] c. ratio [ ]

b. Magazines [ ] d. Television[ ]

14. Are you satisfied with the advertisement of your motorcycle.

Yes [ ] No [ ]

15. Which factors do you consider while purchasing the motorcycle?

(Please rank them in order of your preference)

1. Mileage [ ] 8. Less repair [ ]

2. Price [ ] 9. Credit facility [ ]

3. Appearance [ ] 10. Power /pickup [ ]

4. Technology [ ] 12. Easy to ride [ ]

6. Colors [ ] 13.After sales service [ ]

7. Quantity [ ] 14. Feel proud to own if [ ]

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16. What facility do you expect from your dealer?

a. After sales service [ ] d. Installment checking [ ]

b. Periodic checking [ ] e. Guarantee [ ]

c. Any other (please mention) ---------------

17. Are you satisfied with your dealer’s service?

Yes [ ] No [ ]

If no, why? ---------------

18. What is your opinion about the Hero Honda motorcycle.

a. High [ ]

b. Reasonable [ ]

c. Low [ ]

19. What is your opinion about Splendor Pro performance? Respect the

following?

Excellent Good Fair BadMileagePriceMaintenanceDurabilityDesign and outlookAfter sales serviceConvenience and safetyPerformance

20. Your suggestions: ____________________________________

Place:

Date:

Signature

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BIBLIOGRAPHY

Textbooks Referred

Marketing Management. -Philip kotler

Principles of Marketing. -Philip Kotler

Consumer Behavior. -Sjua.R.Nair

Newspaper Referred

Economics Times

The Times of India

Web Site Referred

www.herohonda.comwww.autoindia.comwww.google.com.

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