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A STUDY OF marketing strategies & business promotion of hero motocorp's ltd., new Delhi OF

BACHELOR IN BUSINESS ADMINISTRATION (Affiliated to Ch. Charan Singh University)

ACADEMIC SESSION [2012-2015]

SUBMITTED TO: SUBMITTED BY: Ms. Pooja Rastogi Govinda Raj (Faculty of BBA Department) Roll No 9356590 BBA VIth Sem.

INSTITUTE OF MANAGEMENT STUDIES

ADHYATMIC NAGAR, GHAZIABAD

Declaration

I hereby declare that the summer training report entitled "Marketing Strategies & Business Promotion of Hero Motocorp's Limited" submitted in partial fulfillment of the requirement for the award degree of Bachloer of business administration (bba) (Affiliated to CCS UNIVERSITY, MEERUT), is my original work and not submitted for the award of any other degree, diploma, fellowship or any other similar title or prizes anywhere else.

GOVINDA RAJ

CERTIFICATE

This is to certify that Mini Project Report entitled Marketing Strategies & Business Promotion of Hero Motocorp's Limited by GOVINDA RAJ(9356590) at IMS GHAZIABAD is an original work and the same has not been submitted to any other institute for the award of any other degree. The suggestion as approved by the faculty were duly incorporated. The project has been submitted in partial fulfillment of the requirements for the degree Bachlor of Business Administration during the academic year2012-2015.ABLE OF

Ms. POOJA RASTOGI

(Mentor)

ACKNOWLEDGEMENT

No Herculean task can be consummated without support and contribution from a no. of individuals and that task is very essence of success in any colossal scheme. These few paragraphs are an effort to epitomize my gratitude to all those who helped me to complete my project successfully.I am thankful to Ms.Pooja Rastogi Faculty Guide ,BBA Dept, IMS, Ghaziabad for her able guidance and support at all time.I am thankful to Mr. Vikas Chaudhary, Manager (Sales & Marketing), New Delhi for his valuable guidance and supervision and provided me the best opportunity to work under his guidance at all time.I am grateful to all those people who provided me all the necessary information directly or indirectly throughout this project report has been completed at time.

GOVINDA RAJBBA ( VI SEM )Roll No. 9356590

TABLE OF CONTENTS Page No.Executive Summary07-8Introduction 09-16Company Profile12-70Objective Of The Study71Research Methodology72-77Graphical Data Interpretation 78-90Findings & Analysis 91-96Recommendations & Suggestions97Conclusion 98Bibliography99Annexure - Questionnaire100-102

EXECUTIVE SUMMARYEXECUTIVE SUMMARYThe objective of my project report was to have a complete inside look in Automobile industry. The study is done to understand Marketing Stg. and Business Promotion of HERO MOTOCORP'S and what strategies are required to increase customers base further along with an edge over competitors.

For this purpose I conducted a market survey to know about the various players and their preference in the industry taking into consideration the various services and the services related services provided by them. The stepwise methodology used included sampling, secondary research, survey research done through personal interviews and interaction with people of different industry. The data was then tabulated and analyzed. The information thus used by the survey was then to discover the reasons for brand preference.The report commences with a brief profile about the Automobile industry and the players in the Indian market. A brief profile about HERO MOTOCORPS has also been given which carves the way for the introduction of the various services offered by the company and their various features. The research methodology and the data analysis are interpreted using various statistical tools. The success of any business entity solely depends on how effectively does it utilizes its optimum resources and how soon does it make arrangements for the removal of the customers grievances. Moreover, the company should always be ready to make necessary changes according to the requirement in order to attract more customers so as to maintain a substantial growth in the market.

I have tried to put my best efforts to complete this task on the basis of skill that I have achieved during my studies in the institute. I have tried to put my maximum effort to get the accurate statistical data. If there is any error or any mistake in collecting the data, please ignore it.

introductionintroductionOn the basis of the analysis and interpretation of the results of the survey, a layout of the loyalty program was designed which could communicate customers expectation from a loyalty program and bridge the gap between the desired expectation of the people and the company.Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a view of the whole business organization and its ultimate objective concern for marketing must penetrate all areas of the enterprise. Market survey in todays competitive world is a must for every organization.This project is a study of market potential of Hero MOTOCORP. The rational behind this particular study is to find out the present market scenario of various brands & to find out the corporate need and perception. It was a pleasurable experience to conduct a research on behalf of Hero MotoCorp's pertaining to the study of the Automobile Sector. To carry out this research a sample study was pursued where the target was made to the people of Allahabad region. Various statistical and analytical tools and techniques are applied to ascertain and depict the present scenario. Conclusion and there by recommendation has been arrived at by proper and justified interpretation of the result derived from the above said analytical tools and techniques.

We, at Hero Motocorp's, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and process, and develop teams that keep the momentum going to take the company to excellence in the new millennium.AUTOMOBILE SECTORIN INDIAAUTOMOBILE SECTOR IN INDIAThe Automobile sector is one of the fastest growing manufacturing sectors in India. In the 90s the industry witnessed an average growth rate of above 20 percent. Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two wheeler production, ranking second only to Taiwan. The world leaders in the sector are evincing keen interest in establishing manufacturing facilities for manufacturing and assembling components. A politically stable and vibrant State, Andhra Pradesh is centrally located with the support of seaports, international airports, assured and reliable power supply, abundant water, broad base of auto component manufacturers, highly trained, skilled and disciplined manpower and is therefore, the preferred location for Automobile industries. The interest of the state has been duly noted by Global Auto Majors, who have indicated their interest to consider Andhra Pradesh for establishing manufacturing facility. The Government of Andhra Pradesh invites leaders in the industry to set up manufacturing facilities to manufacture vehicles or vehicle components in the State. The ideal places to locate companies in the Auto Sector are the Hyderabad-Zaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and Vijayawada-Guntur corridors. The Government is also formulating an Auto Policy, which would give a proper direction to the growth of the sector. There are more than 20 auto component manufacturing companies in the State, manufacturing components such as grey-iron castings, precision aluminium castings, leaf springs,oils and lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical, front axles, gears, forging, machined components, pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure die castings, clutch covers, fuel filters ,etc. Most of these components are presently being supplied to Hero MOTOCORP, TVS Suzuki, Escorts Yamaha, Bajaj and others. Amazon Batteries are manufactured in Chittoor district. Around 119 components manufacturers have been certified for ISO 9000 quality standards and seven companies achieved the QS 9000 quality standard set by government and motors association. Automobile is one of the largest industries in global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. Our premise is the service quality in before and after will buy from the firm that the perceive offers the highest customers delivered value. Customers delivered value is the difference between total customer value & total customer cost.(or) service. Total customer cost is the bundle of costs customers expect to incur in to Osmania Journal of Management evaluating, obtaining, using and disposing of the product / service.

If the performance exceeds sex petitions the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because they are much less ready to switch. Buyers expectations formed on the basis of past buying experience ,friends & associates advice and marketers and competitor information and promises. If market ersraise expectations too high, the buyer is likely to be disappointed .Even if the company sets expectations too low, it wont attract enough buyers. So the expectations should match the performance.Two-wheeler segment is one of the most important components of the automobile sector that has undergone significant changes due to shift in policy environment. The two-wheeler industry has been in existence in the country since 1955. It consists of three segments viz. scooters, Motorcycles and mopeds. In India there are some MNCs and Indian company dealing in automobile sector. The main key players who are dealing in this sector are Hero MOTOCORP, Bajaj, Yamaha, MOTOCORP, and TVS. Hero MotoCorp's is the biggest player in this sector in India as well as in the world and playing a very important role in two wheeler automobile sector. Hero MOTOCORP, Bajaj and TVS are the Indian companies and Yamaha & MOTOCORP are international automobile brand.COMPANY ProfileCOMPANY ProfileHero MotoCorp Ltd. (Formerly Hero MotoCorp's Ltd.) is the world's largest manufacturer of two - wheelers, based in India. In 2009, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.

The story of Hero MotoCorp's began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight.

Hero MotoCorp's has a reputation of being the most fuel-efficient and the largest selling Indian motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich background of producing high value products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of MOTOCORP Motor Company of Japan and the Hero Group that resulted in the setting up of Hero MotoCorp's Ltd. A relationship so harmonious that Hero MotoCorp's has managed to achieve indigenization of over 95 percent, a MOTOCORP record worldwide.

Tactical promotions and excellent marketing helped Hero MotoCorp's establish itself as an intelligent purchase. Its unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country.

Finance services helped facilitate purchase, as did an efficient dealer network across the country.Well-entrenched in the domestic market, Hero MotoCorp's Ltd. turned its attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the National Productivity Council's Award (1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders.

"Don't dream if you can't fulfill your dreams'' Brijmohan Lal Munjal is often fond of saying. The founder and patriarch of the $3.2 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.1 Two Wheeler Company.

Instinctive from a young age, Brijmohan Lal made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then. Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles). Three decades later, as India evolved; he added a second crucial chapter - which visualized affordable and technologically superior transport to millions of middle class Indians. The rest is history.

INTERNATIONALSCENARIOINTERNATIONAL SCENARIOA two-wheeler is used as a personal/family vehicle or a goods carrier in the developing countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance shopping (mopeds) in developed countries. The world two-wheeler market is dominated by Japan. Japanese manufacturers account for around 65% of the total two-wheeler production in the world. However, production within Japan has been declining due to lower domestic demand and shift in manufacturing base outside the country. Japan is also the world's largest exporter of two-wheelers in the world controlling around 75% of the world trade. Its major markets are China, USA and Europe. In terms of player positions, MOTOCORP Motors Corporation, Yamaha Motors and Suzuki Motors Corporation share the top three slots in the world two-wheeler market. The table below shows the production and sales figures of motorcycles and scooters in Japan during the past decade More than 50% of the production in Japan is exported out of the country. This scenario contrasts directly with the Indian scenario. In India, only about 2% of the production in FY99 were exported. The Asian continent is the largest user of two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry.The technology for two-wheelers is not as well developed as for car industry. This is due to oligopoly between top five players in the segment, compared to thirty manufacturers in the car industry.There has been a great change in the customer preferences from the erstwhile all pervasive scooters to the sleek motorcycles and other high-powered trendy motorbikes. Numbers speak much more about the loss in volumes of scooter sales. The shift has occurred in a short span of time, in fact so short that many players in the industry are yet to fully acknowledge the shift. They are yet to mold their product portfolios to take advantage of this shift. As recently as 1994, scooter sales accounted for 48 percent of the total two-wheeler volumes. By 2001, however, their share in the two-wheeler sales fell to less than 25 percent by 2001. The tables turned in favor of motorcycles, which accounted for 57 percent of the total two-wheeler volumes for the 2001 fiscal rising from a dismal 28 percent in 1994 and this trend of increased sales of motorcycles continued. The production and sale of motorcycles has been continuing at a pace of 20 percent and 25 percent respectively during the first half of the current fiscal year. One of the factors that contributed to the steep decline of scooter sales in 2001 is the sales tax rationalization in the budget of 2001, which resulted in a sharp fall in the sales of geared scooters in 2001. This raised duties on geared scooters in western region of the country, which accounts for a substantial portion of the industry's volumes. The trends of sales in two-wheeler industry as a whole are on the decline. From a growth rate of more than 20 percent during the fiscal of 1995, the industry has come down to a zero percent growth rate by the fiscal year 2001. The scooters and the mopeds segments have been on the decline for some time now. But the robust growth in the motorcycle segment has been the only saving grace in the two-wheeler industry. The period between 2005-2009 has been characterized by the software boom, private industry emerging as a substantial employment provider and coming of age of the generation that had started to feel comfortable and adopt western culture from the satellite television. The young earning men today increasingly prefer motorcycles to scooters unlike the generation of their fathers where a geared scooter was "the two-wheeler". Even in the rural market, consumers prefer motorcycles for their sturdiness and ability to sustain bad road conditions. This has added up to the costs of scooters while most motorcycles are in tandem with these new norms. Adding to the woes of geared scooters, a number of ungeared scooters are flooding the market. Vehicles in this segment such as TVS Scooty, Bajaj Sunny, and Kinetic MOTOCORP have found an instant market with the elderly population, women and teenagers, who find these vehicles more comfortable with fewer hassles as compared to the geared scooters. The sales of these ungeared scooters have also been on the rise, registering a growth rate of around eight percent in the last financial year. In addition, the segment of buyers who would have gone for mopeds five years earlier are today showing interest towards the ungeared scooters, adding up to the volumes of these vehicles. The obvious reason is that the pricing of both these segments of vehicles is so close that the borders are fast getting wiped away in the minds of consumers. One who is going in for a moped would not hesitate to spend a thousand or two more to get a scooterette offering better features.

HERO Motocorp's"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into being in the year 1956. From a modest manufacturer of bicycle components in the early 1940's to the world's largest bicycle manufacturer today, the odyssey was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors. This philosophy has paid rich dividends through the years. Hero, a name synonymous with two wheelers in India is today a multi-unit, multi-product, geographically diversified Group of companies. Through fully integrated operations, the Munjals roll their own steel, make critical components such as free wheels for their bicycles, and have the foresight to simultaneously diversify into myriad ventures, like product designing, IT enabled services, finance and insurance, just to name a few. Like every success story, Hero's saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. Throughout its success trail, the Hero Group and its members have displayed unwavering passion of setting higher standards for themselves and delivering simply the best to their customers.The Hero Group philosophy is: "To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity." Thus apart from being customer-centric, the Hero Group also provides its employees with a fine quality of life and its business associates with a total sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has become a way of life and a part of the work culture of the Group. This is what drives the Group to seek newer vistas, adopt faster technology and create quality driven products to the utmost satisfaction of customers, partners, dealers and vendors.Today the Hero Group has a number of accolades and achievements to its credit yet consumer requirements and newer technologies provide fresh challenges every day, and at Hero the wheels of progress continue to turn. Hero MotoCorp's is the largest player in the motorcycle segment. Its Focus is on manufacturing mobikes which are contemporary in design and style and as well as eco friendly to environment. Hero MotoCorp's ltd was the first company to concentrate manufacturing fuel-efficient bikes instead of powerful bikes. The company has a comprehensive range of bikes in its stable CD down CD deluxSplendor plusSplener pro Passion pro CBZ, Passion. X pro

However Street failed to evoke market fancy while sporty CBZ dropped down the popularity chart in early 90s. Hence the company continues to rely on urban centric Splendor ; its primary revenue spinner with the USP of fuel efficiency, which accounts for over 60-70%of its sales. The " Passion " launched in mid -Jan 2001has had a resounding success contributing to 26% of total volumes and has not cannibalized the volumes of Splendor . With the sale of over 1mn motorcycles in 2000-01, the company has also become the largest volume seller among all MOTOCORP Companies and ventures in the world. The company has now shifted its focus towards launch of new products. HHML launched a 100cc motorcycle Joy in FY2001delivering 65 to 70 km per litre in city driving conditions. The company hopes to achieve sales of 8,000 to 10,000 units of Joy per month. The company is also planning to launch motorcycles in 200cc 300 cc category and is looking at the possibility of introducing a " luxury motorcycle " in the same category. HHML has planned an additional capacity of 1.5mln units pa at Dharuhera plant by investing Rs3bn ($65mn) to meet the huge and increasing demand for motorcycles. The MOTOCORP Motor Corporation of Japan has set the annual sales target of 1.75 mln 2-wheelers (25% of worldwide target) for 2003 in India, to be contributed to the extent of 1.5 mln by HHML and the balance by its wholly owned subsidiary MOTOCORP Motorcycles & Scooters India Pvt. Ltd. HMSI launched Activa the 4 stroke automatic medium-sized , 102-cc scooter in July 2001 and is looking at volumes of about 50,000 from its first product. It also plans to launch another scooter next year are also in the offing in order to increase the sales volumes to 1 lakh units. MARKETING STRATEGIES OFHERO MOTOCORP'S Ltd.MARKETING STRATEGIES OF HERO MOTOCORP'S Ltd.By everyone. The farmer in Punjab. The fisherman in Kerala. The trader in Mumbai. And the worker in Bengal. Imagine having a place in their hearts. Imagine echoing their heartbeats. Imagine being part of the great Indian fabric.Thats the great Indian dream. Of every company and it is what Hero MotoCorp's is trying to accomplish through its advertisement and marketing initiatives for the entire range of Hero MotoCorp's motorcycles and the latest campaign broadcasted on all premier channels desh ki dhadkan is a step in that direction. Says Navroze D. Dhondy, CEO, Percept Advertising, which made the 60-second television commercial, "We wanted to say that Hero MotoCorp's was more than a bike. It was a friend, something that has been part of your life, something that has shared your best moments."So who's the target? Everybody. The models in the advertisement range from children to old people. The message ? Everybody needs a Hero MOTOCORP. In the shape of a CD100, or a CBZ, or a Splendor, or a Street. "Desh ki Dhadkan" is the catch line. "Dhak, Dhak," the message. "We echo the heart beat of every Indian," the claim. "We were looking for something new. We wanted to tell the viewer that we were way above the rest," says Atul Sobti, senior vice-president, marketing, Hero MOTOCORP.

Did somebody say new?The India theme was plugged by Bajaj Auto with its Buland Bharat ki Buland Tasvir. Then there was Apollo Tyres, Reynolds, Bharti Telecom A route numerous companies have treaded time and time again. "This is a campaign by the right company at the right time. We waited till we were actually the heartbeat of India," says Sobti. "That's why we went in for an umbrella kind of advertising," adds J. Narayan, advertising manager, Hero MOTOCORP. "We wanted to communicate two things. Our market leadership and the joy of ownership. We wanted to reach our audience at a very emotional level."Market research carried out all over the country for three months gave the creative team at Percept the idea for the ad. "Everybody kept talking about how Hero MotoCorp's motorcycles were part of their lives," says Dhondy.That was also the message that the company wanted to communicate. A slew of product launches had glutted the market, and Hero MOTOCORP, the market leader in the motorcycle segment with a 47 per cent share, wanted to get out of the trap of product oriented or range-oriented marketing. This was the brief that was given to Percept advertising. And Percept says that the advertisement was the first and only presentation it had to make.

The advertising is in tune with Hero MOTOCORP's ambition for the Indian market. Worldwide, MOTOCORP's Splendor is the largest selling 100-cc bike. It is a success that the company hopes to repeat in India as it strives to attain leadership of the two-wheeler segment where it currently has a 26 per cent market share.

PLACEMENT OF HERO Motocorp's

A thorough understanding of the fast-changing consumer behavior, new market segments and product opportunities along with sensitivity to changing customer needs, form the core of Hero's marketing strategy and philosophy. At Hero we essentially have a completely customer-driven approach. A nation-wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise holders for motorcycles, ensures convenient access to the Group's products across the country. Conventionally, very few Indian bicycle manufacturers were interested in exports. However, the Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle segment as early as 1963. While initial exports were restricted to Africa and the Middle East, today more than 50 percent of the Group's bicycle exports meet the demands of sophisticated markets in Europe and America. This is primarily because of appropriate product development and excellent quality that Hero offers. The Group has undertaken a steady up gradation of technologies and there has been diversifications and setting up of newer establishments to meet stringent international standards. At the core of it all is a customer-centric scheme of policies and production and the bottom line is to "Add Value while Engineering Satisfaction."

Its main Models are

Hero MotocorpSplendor PlusSplendor ProPassion PlusSplendor NXGAchiever KrizmaPassion XPROSuper Splendor Glamour Ignitor

VISIONOF THECOMPANYVISION OF THE COMPANYThe Legend of Hero Motocorp'sWhat started out as a Joint Venture between Hero Group, the worlds largest bicycle manufacturers and the MOTOCORP Motor Company of Japan, has today become the Worlds single largest two wheeler Company. Coming into existence on January 19, 1984, Hero Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the Fill it Shut it Forget it campaign. Driven by the trust of over 5 million customers, the Hero MotoCorp's product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expensive dealer network, and reliable after sales service, and you have one of the most customer-friendly companies.

This is proved by the companys sales over the years:

43,000 units

96,200 units

5,30,600 units

1999-00 7,61,210 units2000-0110,29,555 units14,25,195 units

17,78.392 units

Customer satisfaction, a high quality product, the strength of MOTOCORP technology and the Hero groups dynamism have developed HTML scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing Director, We will continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, investment in equipment and facilities and through efficient management.

BOARD OF DIRECTORS

Name of the DirectorsDesignation 1 Mr. Brijmohan Lall MunjalChairman & Whole-time Director2 Mr. Pawan Munjal Managing Director & CEO3 Mr. Toshiaki Nakagawa Joint Managing Director4 Mr. Sumihisa Fukuda Technical Director5 Mr. Om Prakash Munjal Non-executive Director6 Mr. Sunil Kant MunjalNon-executive Director7 Mr. Masahiro TakedagawaNon-executive Director8 Mr. Satoshi Matsuzawa(Alternate Director to Mr. Takashi Nagai)Non-executive Director9 Mr. Pradeep Dinodia Non-executive & Independent Director10 Gen.(Retd.) V. P. Malik Non-executive & Independent Director11 Mr. Analjit SinghNon-executive & Independent Director12 Dr. Pritam SinghNon-executive & Independent Director 13 Ms. Shobhana BhartiaNon-executive & Independent Director 14.Mr. Meleveetil DamodaranNon-executive & Independent Director 15.Mr. Ravi NathNon-executive & Independent Director 16.Dr. Anand C. BurmanNon-executive & Independent Director

PROMINENT AWARDS TO THE COMPANY

YearAwards & Recognitions

2010Company Of the Year awarded by Economic Times Awards =or 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 by the Dun & Bradstreet-Rolta Corporate AwardsWon Golden the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' categoryNDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008NDTV Profit business Leadership Award 2008 - Hero MotoCorp'swins the Coveted "NDTV Profit Business Leadership award 2008"

TopGear Design awards 2008 - Hunk Bike of the Year Award

NDTV Profit Car india & Bike India Awards - NDTV Viewers choice Award to Hunk in Bike category

IndiaTimes mindscape and Savile Row ( A Forbes Group Venture ) loyalty Awards - Customer and Brand Loyalty award in Automobile (two-wheeler) sector

Asian Retail congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty program in Automobile category

NDTV Profit Car india & Bike India Awards - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Extreme

2007The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ Extreme "Bike of the Year" - CBZ Extreme (up =o 150 cc category) "Bike Technology of the Year"

"Bike of the Year" - CBZ Extreme by overdrive 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 Adjudged 7th Top Indian =ompany by Wallstreet Journal Asia (Top Indian Two Wheeler Company).One of the 8 Indian companies to enter the Forbes top 200 list of worlds 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

Splendor Plus (Executive) CD Deluxe (Entry) Pleasure (Gearless scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006.

Adjudged Top Indian Company by Wallstreet Journal Asia (Top indian Two Wheeler Company)Top Indian company in the Automobile - Two Wheeler sector - American Express Corporate Awards 2006.Hero MotoCorp'sSplendor rated as india's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006.

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) Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for the most consistent wealth creator for the period 1991-2005.

2004 Winner of the Review 2005 - 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 National Award for Excellence in Corporate governance 2004 by The Institute of Company Secretaries of india.

2003 Winner of the Review 2004 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.

Bike Maker of the Year by Overdrive Magazine.

MilestoneSMilestonesHero's success saga contains an element of spirit and enterprise; of achievement through grit and determination, coupled with vision and meticulous planning. 1956Hero Cycles Limited is established.

1961Rock man Cycles Industries Limited established which the largest manufacturer of bicycle chains and hubs is today.

1963It pioneered bicycle exports from India - a foray into the international market.

1971Highway Cycles was set up to meet the demands of Hero Cycles. It is today the largest manufacturer of single speed and multi-speed freewheels.

1975Hero Cycles Limited became the largest manufacturer of bicycles in India.

1978Majestic Auto Limited was formed and the Hero Majestic Moped was introduced.

1981Munjal Castings established.

1984Hero MOTOCORP Motors Limited established in joint venture with MOTOCORP Motors of Japan, to manufacture motorcycles.

1985Munjal Showa Limited established to manufacture shock absorbers and struts and is today among the top two shock absorber manufacturing companies in India.

1985The 100 cc Hero MOTOCORP Motorcycle arrived and by 1988 was the No. 1 among all motorcycles in India.

1986Hero Cycles Limited entered the Guinness Book of Records as the largest bicycle manufacturer in the World.

1987Hero Motors, a division of Majestic Auto Limited set up in collaboration with Steyr Daimler Puch of Austria.

1987Gujarat Cycles Limited, now known as Munjal Auto Industries Limited was established to manufacture and export state-of-the-art bicycles and allied products in its fully automated plant at Waghodia.

1987Sunbeam Auto Limited, earlier a unit of Highway Cycles Limited, established as an ancillary to Hero MOTOCORP. It is the largest die casting plant in India.

1988Introduced "Hero Puch" from Hero Motors Limited. This revolutionary machine immediately set new records of petrol efficiency and usable power in 50 - 65 cc machines.

1990 Hero Cold Rolling Division established and is one of the most modern steel cold rolling plants.

1991Hero MOTOCORP receives National Productivity Council's Award.

1991Hero MOTOCORP receives the Economic Times - Harvard Business School Association Award against 200 contenders.

1992Munjal Showa Limited receives National Safety Award.

1993Hero Exports established as the International Trading Division for Group and non-Group products.

1995Hero Corporate Services Limited as the service segment for the Hero Group Companies, ancillaries, suppliers, dealers and other associates.

1996Hero Winner, a large-wheeled scooter was introduced by Hero Motors Limited with a choice of 50 cc and 75 cc engines.

1996Munjal Showa Limited receives British Council's National Safety Award.1998Hero Briggs and Stratton Auto Private Limited were set up to produce 4-stroke two-wheeler engines in various cubic capacities.

1998Munjal Auto Components established to manufacture gear shafts and gear blanks for motorcycles.

2000The Hero Group diversifies into IT and IT enabled services through its service segment - Hero Corporate Services Limited.

2000Hero MOTOCORP emerges as the market leader in motorcycles with salesOf over a million motorcycles and a strong market share of 47%.

2002Hero Global Design established to offer engineering services in CAD/CAM/CAE related to New Product Development, Design, Engineering and Manufacturing.

2004Hero Cycles ties up with National Bicycle Industries, part of Matsushita Group to manufacture high-end bicycles.

2006Fastener World Established.

2008Easy Bill Established to offer utility bill collection & retail services.

2009Tie up with Live bridge Inc., USA.

20010Tie up with Bombardier - Rotax GmbH for scooter engines.

2011Tie up with Aprilia Scooters, Italy.

2012Hero MOTOCORP continues as the World's largest manufacturer of two-wheelers with annual sales volume of 2.07 motorcycles and a market share of 48%.

Retail Insurance business established.2013Hero MOTOR 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 MOTOCORP - "Pleasure" introduced.

MEDIA USED BY HERO MOTOCORP'S FOR PROMOTION

TELEVISION ADVERTISEMENT

CAMPUS ROCK IDOLS

HERO MOTOCORP'SSA RE GA MA PA

MTV HERO MOTOCORP

ROADIES

MTV Hero MotoCorp'sRoadies has been the longest running adventure reality series on Indian television and among the only ones that has grown in popularity, scale and viewership over various seasons

TERRAQUIZ The Energy and Resources Institute (TERI) and Hero MotoCorp's Ltd. , the world's largest two-wheeler manufacturer, in association with the Ministry of Environment & forests (MoEF), organises TerraQuiz , a one-of-its-kind international inter-school environment quiz competition

PRINT MEDIA

INDUSTRY SCENARIO

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

Manufacturers Products % of market share

HERO MOTOCORPMotorbikes 75% market shareBAJAJ AUTO Scooter+Motorbikes+ Scooterate 25% market shareLMLScooter+Motorbike+Scootrate 30% market shareTVSMotorbikes+Scootrate 15% market shareYAMAHA Motorbikes15% market shareENFIELD Motorbikes10% market share

According to the recent results company (Hero MOTOCORP) registered a sales increased by 24.5% over the past years. Same month TVS also registered increase of 45% while the other companies are not enjoying quiet good increase in sales. While the whole industry registered an increase of about 17% only. So in present scenario the Hero MotoCorp'scomes as the leader of whole automobile segment while there is immense competition in industry to get the highest market share.

BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly, Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand ambassadors joining the add campaign together to promote Ambition. All of these celebrities are the member of Indian cricket team and very much popular in younger generation. In the last year with the launch of its new premium bike Karizama Hero MotoCorp'ssigned its new brand ambassador who is a cine star and is also very popular. He is Hritik Roshan.

Service Your Bike

Hero MotoCorp'shas always taken a lead in terms of defining service standards in two wheeler industry with an aim to provide "Total Customer Satisfaction" for their valuable customers across the country and also internationally. We are constantly endeavoring to improve the quality of our service facilities at our Dealerships. The first and foremost step to achieve this was creating Automated Workshops at our Authorized Dealerships and Service Centers across the country.

Automated Workshops

Hero MotoCorp'shas the largest chain of Automated Workshops providing service to their valuable customers by using latest service technology. Automated Workshops have standard layout, hydro electric motor cycle lifts, dust free engine rooms and use pneumatic tools and equipment to ensure quality repair in customers motorcycle. The workshop environment and usage of pneumatic tools increases mechanics efficiency and their motivation to provide quality service. The layouts have been standardized to ensure that there is a transparency of service. The customers can view their motorcycle repair while sitting comfortably watching TV or relaxing in the customer lounge. Workshop Automation has become a mandatory service standard for all Hero MotoCorp'sDealers and Service Centers.

TrainingThe regular Technical Training Programmes for Dealers Workshop staff to keep them updated and refreshed about the latest price technology, product technical details as well as service and repair procedures to handle customers motorcycle with utmost care as well as to provide them the service quality of highest order is a focus area at Hero MOTOCORP. Hero MotoCorp'shas six (06) training centers across the country. There are 05 zonal training centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take care of technical training requirements of dealers in each zone as well as local technicians. There is a National Training Center at Dharuhera to take care of all advanced level technical programmes for our dealers staff and our in house service engineers. Hero MotoCorp'skeeps an organizing Dealers Mechanics Contest at Zonal Level and National Level to develop competitive spirit among mechanics as well as in the process to update their skills and product knowledge.

Customer ServiceHero MotoCorp'skeeps on taking always-new initiatives to maintain its leadership on service as well as enhance customer satisfaction level on an ongoing basis. Some of the new initiatives related to customer service are as follows: - Service Advisors at Dealerships Service Plus Scheme for customers Pre Paid Reply Cards Automated Mobile Service Workshops Mega Millennium Camps On the Job Training Programmes Local Mechanics Training There are many more initiatives, which we keep on taking along with our dealers to keep our customers always in our mind on top priority.

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

Hero MotoCorp'sis also launching very soon a novel concept and a very major initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of Hero MOTOCORP's motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding techniques through various audio visual aids. Safety Instructors shall be imparting riding skills as well as education to the customers. Dealers shall also conduct a major programme in their respective towns with the association of local traffic police on a regular basis on safety education and correct riding techniques.

PRODUCTOF HERO MOTOCORPPRODUCT RANGE OF HERO MOTOCORP100 CC

100 Splendor Plus

Splendor pro

Passion Pro

Splendor nxg

150 cc

Achiever

Karizma

125 cc

Super Splendor

Glamour

Ignitor225 CC

Karizma ZMR

OBJECTIVE OF THE STUDYOBJECTIVE OF THE STUDYThe study was done primarily with the following objective in mind.

To study the brands of Hero MotoCorp's& consumers perception with its competitors.

To know why people buy Hero MotoCorp'sand why some people prefer other company.

To study the features of different brands that give a good idea of various products and services offered by the company.

To understand the competitive environment in which the company is operating and is desired to meet customer need and satisfaction.

To provide useful information to the company about the product features of various competing companies.

research METHODOLOGYresearch METHODOLOGYThe methodology used in conducting the research work on HERO MOTOCORP'Swith major emphasis on its sales and marketing strategies involve the following steps:

I have selected Hero MotoCorp'sfor my summer training because it is the company that is growing day by day. It has maximum market share with comparison to its competitors. And it is the company that gives highest sales and it is also the highest two-wheeler manufacturer.

problems statements Defining the objective is the most important part of any study process. Proper defining of the problem is a must for proceeding further with the research process. The type of study to be carried out, the questions to be raised, the sampling procedure to be followed, and the data to be collected, all depends on a correct understanding of the problem. Also, by clearly focusing on the real problem, the research job can be simplified and completed with the minimum cost, effort and data.

aREA cOVERED : New Delhi

Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:

In this a plan was developed about how to collect the require information i.e. whom to contact for gathering the relevant data. Data is the foundation of all research. It is the raw material with which a researcher functions.Therefore, it requires great care to select the sources of data. Data, or facts, may be obtained from several sources. Data sources can either be primary or secondary.

A. Secondary data:

The sources from which secondary data was collected:Press releases of the company.Newsletters and In-house journals.Brochures and detailed descriptive leafletsMagazines like Business World, Outlook, Auto India, etc.Websites such as www.heroMOTOCORP.com, www.google.com. These were the sources from which secondary data has been gathered. Most of the information presented in this report was extracted from the above data sources.

B. Primary data:

Collection of primary data was conducted by visiting the people personally for the preparation of the report.

2. Research approach:It means the way by which the information was collected. Visiting the various places of Allahabad, getting the questionnaire filled by different individuals.

Beside this, frequent visit to the showrooms of the company was of great help to conduct the analysis and research work.

3. Contact methods:Instrument or data collected Forms: It is the method by which data is gathered. It could be done through various instruments like questionnaires, observations, getting information from the staff members of the agency, contacting to the motor mechanics was sufficient enough to conduct the study.

4. Collection of information :The primary information was collected by face-to-face and direct interviews with the peoples and the customers. They provide the relevant information regarding the profile of the company as compared to the other company in the Indian market. Most employees suggested visiting companys web site, as it was not possible for them to spare time from their busy schedules.

The secondary sources of information were various web sites of the companies, newspapers & magazines such as The times of India, The Hindustan Times, Business world, Auto India, etc.

5. Analyzing the information:The data collected was carefully analyzed. The research and analysis of the information has been done on the basis of various sales and marketing strategies adopted by the company during its tenure.

6. Reporting and conclusions and recommendations:This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in the form as prescribed. The major part of the report is the findings. The finding also includes charts, tables and diagrams etc. The report also mentioned the limitations of the project undertaken. Then conclusion has been drawn out of the findings and various recommendations have been given at the end of the report. Certain tables on the basis of which the findings were made have been included in the appendices section followed by the bibliography.

SCOPE OF THE STUDYHero MotoCorp'sis spreading its wings and widening its business horizon to reach and serve customers at new centers in the year ahead. The company services are backed by a highly motivated and technology driven team to achieve customers need, product expertise and geographic reach.

The study is oriented towards the concept of different brands offered by Hero MotoCorp'sand its competitors to its customers. The company has endeavored to move fast in providing market solution, which maximize customer needs and convenience, using multiple delivery channels in composing the agency network, service centers, lower service cost and increased efficiency.

LIMITATIONS LIMITATIONS OF THE STUDYAs said a basic research was conducted at the company to enable the company to assess how far the customers are satisfied with product and services of Hero MOTOCORP. During the course of the study the following limitations were observed:

The method will be unsuitable if the number of persons to be surveyed is very less as it will be difficult to draw logical conclusions regarding the satisfaction level of customers.

Interpretation of data may vary from individual depending on the individual understanding the product features and services of the company.

The method lacks flexibility. In case of inadequate or incomplete information the result may deviate.

It is very difficult to check the accuracy of the information provided.

Since all the products and services are not widely used by all the customers it is difficult to draw realistic conclusions based on the survey.

graphicalData Interpretationgraphical Data Interpretation Sale of Hero MotoCorp'sin Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale of Hero MotoCorp'sis less but in urban area it gives very exiting result. This may be because of the conditions of roads there.

Area % of RespondentsUrban Area72Rural Area28

Chart2

72

28

Sheet1

AreaNo. of Respondents

Urban Area72

Rural Area28

Sheet1

No. of Respondents

Sheet2

Sheet3

Chart2

72

28

Sheet1

AreaNo. of Respondents

Urban Area72

Rural Area28

Sheet1

No. of Respondents

Sheet2

Sheet3

PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken from the mentioned areas for the survey. It was observed that the people of main town like to use Hero MotoCorp'sas they like all features of it. And is according to there pocket

Areas % of respondentsMotijheel 42Maripur12Chatta Chock26Mithan Pura14

Other 6

FAMILY INCOME OF RESPONDENTS

The income distribution of the families of respondents shows that the bike, which was considered earlier to be out of range for middle class families is now becoming very fast an article for them.

Family income (Rs.)% of Responses5000-100001010000-150004615000-2000036Above 2000008Chart5

10

46

36

8

Sheet1

AreaNo. of Respondents

Inner Hostel36

Outer Hostel14

P G D M21

M C A6

B B A13

B C A7

Other3

5000-1000010

10000-1500046

15000-2000036

Above 200008

Sheet1

21

6

13

7

3

Sheet2

Sheet3

Chart5

10

46

36

8

Sheet1

AreaNo. of Respondents

Inner Hostel36

Outer Hostel14

P G D M21

M C A6

B B A13

B C A7

Other3

5000-1000010

10000-1500046

15000-2000036

Above 200008

Sheet1

21

6

13

7

3

Sheet2

Sheet3

PERSONS WHO KNOW TODRIVE BIKE

Almost every person know how to drive a Bike (In my Survey)

Response % Of respondents Driving known 96Driving not know04Chart10

96

4

Sheet1

Performance1818

Look11Cash Purchase4747

Availability5Hire Purchase3

Price13

Maintenance44

Brand image55

After sale service61

Driving known96

Driving not know4

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Television23

Magazine18

Friends7

Hordings1

Others1

Sheet1

0

0

0

0

0

Sheet2

Sheet3

Chart10

96

4

Sheet1

Performance1818

Look11Cash Purchase4747

Availability5Hire Purchase3

Price13

Maintenance44

Brand image55

After sale service61

Driving known96

Driving not know4

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Television23

Magazine18

Friends7

Hordings1

Others1

Sheet1

0

0

0

0

0

Sheet2

Sheet3

FACTOR PROMPT TO BUY HERO MOTOCORP

It should be stated that the performance is the most important factor followed by look. The possible combination and corresponding number of respondents are shown in the table below.

Features % of respondents Performance 18Look 11Availability 5Price1Maintenance4Brand image5After sale service 6Chart7

18

11

5

1

4

5

6

Sheet1

Performance1818

Look1111

Availability55

Price16

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Sheet1

Sheet2

Sheet3

Chart7

18

11

5

1

4

5

6

Sheet1

Performance1818

Look1111

Availability55

Price16

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Sheet1

Sheet2

Sheet3

HOW DID THE RESPONDENT CAME TO KNOW ABOUT THE BIKE?The best media of advertisement (according to which the respondents came to know about the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of them came to know through hoardings.

Medium of Advertisement % of RespondentsTelevision 46Magazine 36Friends 14Hoardings 02Others 02Chart9

46

36

14

2

2

Sheet1

Performance1818

Look11Cash Purchase4747

Availability5Hire Purchase3

Price13

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Television46

Magazine36

Friends14

Hordings2

Others2

Sheet1

0

0

0

0

0

Sheet2

Sheet3

Chart9

46

36

14

2

2

Sheet1

Performance1818

Look11Cash Purchase4747

Availability5Hire Purchase3

Price13

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Television46

Magazine36

Friends14

Hordings2

Others2

Sheet1

0

0

0

0

0

Sheet2

Sheet3

PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of the respondents say that they have purchased their bike through bank loans.

Purchase Type % of Respondents

Cash Purchase 94Hire Purchase 06Chart8

94

6

Sheet1

Performance1818

Look11Cash Purchase9447

Availability5Hire Purchase6

Price13

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Sheet1

0

0

0

0

0

Sheet2

Sheet3

Chart8

94

6

Sheet1

Performance1818

Look11Cash Purchase9447

Availability5Hire Purchase6

Price13

Maintenance44

Brand image55

After sale service61

P G D M21

M C A6

B B A13

B C A7

Other3

5000-100005

10000-1500023

15000-2000018

Above 200004

Sheet1

0

0

0

0

0

Sheet2

Sheet3

DECISION INFLUENCED BY

Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their friends and parents influenced them.

Influencer % of Respondents Parents16Self54Friends18Relatives08Others 04

Chart1

16

54

18

8

4

Sheet1

Parents168

Self5427

Friends189

Relatives84

Others42

Sheet1

Sheet2

Sheet3

Chart1

16

54

18

8

4

Sheet1

Parents168

Self5427

Friends189

Relatives84

Others42

Sheet1

Sheet2

Sheet3

BIKES PREVIOUSLY USED

More than 60% were using Hero MotoCorp'sCD100 bikes. They were followed by Yamaha RX100 & very little have chosen other bikes.

Previously Used% of RespondentsCD100 62Yamaha RX10032Others 06Chart2

62

32

6

Sheet1

Parents88

Self2727

Friends99

Relatives44

Others22

CD1006231

Yamaha RX1003216

Others63

Sheet1

Sheet2

Sheet3

Chart2

62

32

6

Sheet1

Parents88

Self2727

Friends99

Relatives44

Others22

CD1006231

Yamaha RX1003216

Others63

Sheet1

Sheet2

Sheet3

RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing a stiff competition from Pulsar & Fierro.

Bikes % rating by RespondentsSpleandor 38Passion08Ambition06Pulsar 28Fierro 14Chart3

38

8

6

28

14

6

Sheet1

Parents88

Self2727

Friends99

Relatives44

Others22

CD1003131

Yamaha RX1001616

Others33

Splendor38

Passion8

Ambition6

Pulsar28

Fierro14

Others6

Sheet1

Sheet2

Sheet3

Chart3

38

8

6

28

14

6

Sheet1

Parents88

Self2727

Friends99

Relatives44

Others22

CD1003131

Yamaha RX1001616

Others33

Splendor38

Passion8

Ambition6

Pulsar28

Fierro14

Others6

Sheet1

Sheet2

Sheet3

Others 06

SURVEY REPORT

The Initial Quality Study of Two Wheelers in IndiaSomething to Ponder over.Which model of Motor Cycle would you recommend to your dear friend?

Does the basic reliability of two-wheelers measure up to the promises made by the manufacturer?

Where exactly is the quality lacking?

Are buyers happy with the quality they get?

What is the trend over the years?

Would they buy the same model again or more importantly from the manufacturers point of view would they advise their friends to buy it?

So let the people know just how the two-wheelers fared on the road WORKS :

It quantifies the initial quality of two wheelers in the form of the universally accepted metric Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performanceLinks the quality findings with the customer viewpoint

Prelude :

Each year manufacturers of two wheelers sells millions of vehicles in India with an implicit promise that their products will have zero defects.

However, do their Products match up to their promises?

And how can we find out how they perform on the road?

PPM is an initial quality index for two wheelers. It is an index that represents the level of quality in manufacturing and delivery operations for a given model of two-wheeler.

PPM counts the number of problems faced by the user of a given model of two-wheeler within the first three months of its usage. The addition of such problems for 100 carefully chosen vehicles indicates a number called problems per 100 vehicles or PP100V. e.g. if a particular model has initial quality index of 216 problems per 100 vehicles it means on an average each vehicle will have 2.16 problems.

The exercise started on 5th July, 2004. The fieldwork was completed on 5th August, 2004.Field investigators have spent more than 10,000 hours on the road, carefully tracking down new owners of 14 popular bikes, to find out what problems they have encountered in the first three months of usage.

Responses were collected from about 100 people living in town for each of the 24 models totaling to more than 2400 responses from areas. Aided recall technique was used through a structured questionnaire based interview to collect the data from the field. Only full-time field investigators of METRIC were employed for data collection to maintain reliability of responses.Findings & Analysis Findings & Analysis The Indian two wheeler industry today offers more than 70 models to a buyer. And manufacturers are launching new models every day More than 20 models were launched in the last year.

Top this up with a variety of promises ranging from free gifts and financial schemes to the attractive looking models and jingles in the advertisement.

In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a given category of two wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a rich father may only look at premium bikes.

What next? Which bike should I buy? A bike with more power better looks more reliability errrr!

Lesser problems per vehicle for a given model could be a good enough reason to go for the model..? Yes! But, within my selected category of premium bikes So which premium bike has lesser problems? Do new launches have more problems than older ones? Naa! Does PPM score depend on who manufactured the vehicle? See for yourself!

Manufacturer-wise PP100V scores in SurveySr.No. Vehicle PP100V

1 MOTOCORP 1462 LML 1653 Hero MotoCorp's 1764 Kinetic 1835 TVS 1966 Bajaj 1967 Yamaha 223 Executive bikes scored less problems than economy bikeshowever simpler machines like scooters have the fewest problems

This year we classified motorcycles by the market as premium, executive and economy... Amongst the bikes, we found the number of problems were lowest in executive bikes and highest in economy bikes.

Executive bikes (179 PP100V), then premium bikes (209 PP100V) and last were economy bike (230 PP100V).

Maximum Problems found in engine and transmissions:

46% of the problems reported by customers were problems like high fuel consumption, starting trouble, erratic / rough gear shifting, noisy / loose drive chain etc. All these problems are related to the engine & transmission. Another 12% of the problems were attributed to miscellaneous aspects like battery discharged, stand hard to operate, etc. Perhaps this is the most complex part of the two wheelers and hence poses maximum challenge to the quality control guys in the manufacturing units. ENGINE Trouble..Splendour the largest selling executive bike from Hero MotoCorp'shas reported the lowest number of problems with ENGINE (37 PP100V) closely followed by the newly launched geared scooter Eterno (38 PP100V) from MOTOCORP.Simplicity is the beauty

TRANSMISSION WOES :Gearless scooters/scooterettes have lowest number of TRANSMISSION problems., complains Who fulfilled the promised performance and how much? Sl No. Manufacturer % models above category average 1 MOTOCORP 100 2 LML 100 3 Hero MotoCorp's 67 4 Bajaj Auto 43 5 TVS 33 6 Yamaha 33 7 Kinetic 25 SCOPE AND COVERAGE :Manufacturers and their Models:

Sr.No. Manufacturer List of models studied * Bajaj1 Boxer2 Caliber 1153 Pulsar 150 / 1804 Spirit *Hero MOTOCORPf5 Ambition6 CD-100 / SS / Dawn / CD Dawn7 Splendor / Passion *Kinetic Engineering

8 Boss *LML9 Freedom

*TVS

10 Max 100 R / DLX / DC11 Victor *Yamaha12 Crux / Crux R13 Enticer14 Libero

Aggregates and features covered: Overall Satisfaction Overall quality Instrument Panel / Dash Board Locks Control knobs / Switches Handle Lights Body Transmission Engine Wheels Riding

It is clear from the report that the Hero MotoCorp's is facing cutthroat competition; hence the companys manager has to be fast and smart so as to understand the customers needs. They have to come up with various new techniques or schemes to be able to cater to different categories of people.

Market share of Hero MotoCorp'sis decreasing due to fierce completion by bajajCustomers are becoming more wise day by day and they are now willing to know all the in and out of the things happening around them. This has led to increased customer awareness.

We can analyze that if the brand is reputed that doesnt win the customers delight unless its provided same value-added features or else we can say competitive advantage.

For gaining a competitive advantage it has to continuously compare the product and services with the competitors and find the weak area of the rivals for gaining competitive advantage.Surveys revealed that awareness of Hero MotoCorp's is low among its target segment for creativity awareness. The company has to take some keen step for promotional activity.The company should regularly send the sales person who have good communication skill to the customers so that they should be aware about the product and services in market and know the quality of the services offered by the company.

RECOMMENDATIONS & Suggestions RECOMMENDATIONS & Suggestions

While Hero MotoCorp'shas strong foothold in the industry, the company should look into the areas of weakness.In this connection, It is suggested that the company can look into the following areas:

In order to expand its business it should introduce innovative schemes for young generations, better financial schemes, etc.

The company should expand its service centers.

The must move towards the rural areas to expand its sale.

New attractive models to be launched as per the requirement of youth

Strategies to be formed to beat the competitor

Scooter segment require some more attention MOTOCORP scooter can do much better

And focus on developing light scooters for girls.Conclusion Conclusion

It is concluded that the market potential of Hero Motocorp's. The rational behind this particular study is to find out the present market scenario of various brands & to find out the corporate need and perception. It was a pleasurable experience to conduct a research on behalf of Hero MotoCorp's pertaining to the study of the Automobile Sector. To carry out this research a sample study was pursued where the target was made to the people of Allahabad region. Various statistical and analytical tools and techniques are applied to ascertain and depict the present scenario.Conclusion and there by recommendation has been arrived at by proper and justified interpretation of the result derived from the above said analytical tools and techniques.

BIBLIOGRAPHY BIBLIOGRAPHY

BOOKS:Name of the book:- Marketing research

Author:- Dr. C.B.Mamoria

Name of the book:- Marketing research

Author:- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

Journals published by Hero MOTOCORP, Annual ReportAuto India, Business World

INTERNET:www.heroMOTOCORP.comwww.google.com

Questionnaire Name __________________________________________________

2. Address _____________________________________________ _____________________________________________3. Phone No. ___________________ Mobile No. ___________________

4. Age 18 22 years[ ]23 27 years[ ] 28 32 years[ ]above 32 years[ ]

5. Do you have any bike in your house?Yes[ ]No[ ]

If yes, Name and Company of the bike.________________________________________________________.7.If No, Do you have any plan to buy it in next 6 months? Yes[ ]No[ ]

If Yes, Name and Company of the Bike.________________________________________________________.

Which Bike does you like most?________________________________________________________.

10.Rank the Motorbike manufacturing company.1.Hero MOTOCORP[ ]

2.Yamaha[ ]3.Bajaj[ ]4.L.M.L.[ ]

Do you remember any advertisement of Hero MOTOCORP?________________________________________________________.

What should the price range in your opinion?Splendor +___________________Sufficient[ ]CD dawn___________________Sufficient[ ]

Passion +___________________Sufficient[ ]CBZ___________________Sufficient[ ]Karizma___________________Sufficient[ ]

Any new facilities or any improvement that you want.________________________________________________________________________________________________________________________________________________________________________.

14.Give remark to your old Bike Company. Good[ ]Very Good[ ]

Excellent[ ]Out standing[ ] Dont have a Bike[ ]

Give remark to Hero MOTOCORP.

Good[ ]Very Good[ ]Excellent[ ]Out standing[ ]Dont have a Bike[ ]