Project report on Consumer Buying Behaviour of Hero Honda

JANKI AUTOMOBILES VMPCMS

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History & Development

The success of the Hero Group lies in the determination and foresight of theMunjal brothers, who shared their vision with their workers and led the Group to aPosition where its name has become synonymous with top-quality two wheelers.

The flame kindled by the Munjal brothers in 1956 with the flagship company Hero Cycles; Mr. Satyanand Munjal, Mr. Brijmohan Lall Munjal and Mr. O. P. MunjalContinue to carry the torch and are actively involved in the day-to-day operationsOf the Hero Group.

Around the time when the freedom movement in the India was taking shape in the late 1920s, he walked into newly opened Gurukul (India heritage school) near his home in kamalia (now in Pakistan). He was only six year old then.

Thus began an extra ordinary tale of courage and preservance. Brij Mohan Lall began his company which name he kept was Hero cycles Limited in 1956. When he and his brother relocated to Ludhiana. The family set up company that provided poor people with basic transport (cycle).

In the 1980s when all wheeler co. in India opted two stroke engine technologies, Brij Mohan preferred a four stroke engine a technology that dramatically increased fuel efficiency and reduced maintenance cost, this technology was one of the biggest reason for Hero Honda’s stupendous success.

When Honda motors of Japan were looking for collaboration in the 1980s the Hero Group was not high up the picking order initially as there were other more eligible and established suitors.

In the 1983 the joint venture between India’s Hero Group and Honda motors, co. 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 the first co. in India to prove that it was possible to drive a vehicle without polluting the roads. In 1985, the Hero Honda co. introduced

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new first generation motorcycles that ‘CD 100’ riled out. A legendary ‘fill it - shut it – forget it’ campaign captured the imagination of the commitment of increased mileage.

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 second, someone in India buts Hero Honda’s top sells motor cycle – splendor. This festival season, the company sold half a million two- wheeler on a single month feat unparalleled in global automotive history.

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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 Vision

The Hero Honda story began with a simple vision – the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s

commitment to customer, quality and excellence, and while doing so, maintaining

the highest standards of ethics and societal responsibilities. Hero Honda believes

that the fastest way to turn that dream into a reality is by remaining focused on

that vision.

Company Profile

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Name of enterprise: JANKI AUTOMOBILES LTD.

Address: JANKI AUTOMOBILES LTD. 5-10 Sad guru complex, Highway Road, Unjha-384170. Dist. Mehsana.

Phone: 02767-259037Cell: 98257 95496

Size of the company: Medium Scale

Main Office:

Hero-Honda Motors Limited.34, community centre, Basant lok,Vansant vihar/ New Delhi-110057, IndiaTel:- +91-11-26142451, 26144121Fax:- +91-11-26433198

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tel:-


Awards

2006: “Lifetime Achievement Award” for translating excellence in corporate governance in to reality by the Institute of company secretaries of India.

2005: Indian automotive hall of pride by overdrive.

2004: Lifetime achievement award for management by All India Management Association.

2002: Entrepreneur of the year by business standard.

1995: National Award for outstanding contribution to the development of Indian small scale industry.

1994: Businessman of the year by Business group of publications.

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Product Details

Hero Honda Splendor Plus

Hero Honda Splendor Plus (97.20 cc)Hero Honda Splendor Plus is one of the largest selling bikes in India. It sports several improvements over the old splendor. At the showroom, this bike costs around Rs. 40,000 with an on-road price of around Rs. 45,000. Currently,

Hero Honda Passion Plus

Hero Honda Passion Plus (97.20 cc)The Hero Honda Passion Plus is a bike meant for the executive city commuter. This improved version of the Hero Honda Passion comes with several improvements over its earlier versions and gives an easy ride and easy handling. New bikes have showroom prices of around Rs. 42,700 and on road prices of around Rs. 48,200.

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Hero Honda Glamour

Hero Honda Glamour (125 cc)The new Hero Honda Glamour looks all the better with enhanced graphics and other details and continues to sell to the discerning. At the showroom, this bike costs around Rs. 48,000 with an on-road price of around Rs. 55,000.

Hero Honda CBZ

Hero Honda CBZ (Kick Start)The Hero Honda CBZ Xtreme has little in common with its earlier version the Hero Honda CBZ except a similar headlamp. New bikes in this series have a showroom price ranging from around Rs. 55,500 to around Rs. 62,000 inclusive of all charges.

Hero Honda Hunk

Hero Honda Hunk (Kick Start)

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New bikes have showroom prices of around Rs.55,000 and on road prices of around Rs.60,000 Hero Honda Hunk (Kick Start) bike prices vary upon the two-wheeler dealer's location.

Hero Honda Hunk (Self Start)New bikes have showroom prices of around Rs. 57,000 and on road prices of around Rs. 60,000. Hero Honda Hunk(Self Start) bike prices vary upon the two-wheeler dealer's location.

Hero Honda Karizma

Hero Honda KarizmaThe Hero Honda Karizma may be the most modern bikes presently on Indian roads today. New bikes have showroom prices of around Rs. 74,000 and on road prices of around Rs. 82,000 at Ahmedabad. Currently, Delhi has the lowest, and Mumbai the highest on-road prices for Hero Honda Karizma. Hero Honda Karizma bike prices vary upon the two-wheeler dealer's location.

Hero Honda Pleasure

Hero Honda Pleasure (102 cc)The Hero Honda Pleasure has made its name in the scooterette'smarket, being fitted with features meant specifically for the modern woman. New bikes in this series have a showroom price ranging from around Rs. 36,700 to around Rs. 41,700 inclusive of all charges.

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Consumer Buying Behavior

The main aim of marketing is to meet and satisfy target customers need and wants. Buying behavior refers to the peoples or organization conduct activities and together with the impact of various influences on them towards making decision on purchase of product and service in a market. The field of consumer behavior studies how individuals, groups and organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desires understanding consumer behavior and knowing customer are never simple. The wealth of products and service produced in a country make our economy strong. The behavior of human being during the purchase is being termed as “Buyer Behavior”. Customer says one thing but do another. They may not be in touch with their deeper motivations. They are responding to influences that change their mind at the last minute. A buyer makes take a decision whether save or spend the money.

Definition of Buyer Behavior

“It is the study of hoe individuals, groups, and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.”

The Buying Decision Process

Marketing scholars have developed a “Stage Model” of the buying decision process. The consumer passes through five stages like:

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1. Problem Recognition: - The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need by gathering information from a number of consumers. They can then develop marketing strategies that triggers consumer’s interest.

2. Information search: - The consumer tries to collect information regarding various product/services. Through gathering information the consumers learn about different brands and their features. Information may be collected from magazines, catalogue, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade fair etc. marketers should find out the source of information and their relative degree of importance to the consumers.

3. Evaluation of alternatives:- There is no single process used by all consumers by one consumers in all buying situations. There is several first, the consumer process, some basic concept are:-1) The consumer is trying to satisfy need.2) The consumer is looking for certain benefits from the product solutions.

The marketer must know which criteria the consumer will use in the purchase decision.

4. Purchase decision: - Among from the purchase of alternatives the consumers make the solution. It may be to buy or not to buy. The other additional decision are :-Which types of bike he must buy?From whom to buy a bikes?How the payment to be made?And so on. The marketer up to this stage has tried every means to influence the purchase behavior but the choice is properly consumers, in the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand.

5. Post purchase behavior: - Post purchase satisfaction- If the performance falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is delighted. These feelings make a difference in whether the consumer buys the product again and talks favorably or unfavorably about it to others.Post purchase actions – A satisfied consumer is normally a repeat buyer. Our best advertising is a satisfied customer.

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Post purchase use and disposal – Marketers should also monitor how buyers use and dispose of the product.

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Introduction

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Research is a diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, applications, etc. Methodology is the system of methods followed by particular discipline. Thus research methodology is the way how we conduct our research.

1. Title of research study:-

“Consumer buying behavior of hero Honda Company Ltd”

2. Research Objective:-

a) Main objective: Hero-Honda is one of the leading automobile company well known for its bikes. The main objective of this research is to know the buying behavior of the consumers before buying the products.

b) Subsidiary objective:

To know the position of the company in the market. To know that how many people prefer Hero-Honda as their first choice for

buying the bike. To know that which bike of Hero Honda is in more demand than others.

3. Nature of the research study:-

The nature of my Research is descriptive research because I have analyzed the characteristics of the consumers which they consider before buying the bike.

4. Sampling Plan:-

A) Area of the research study

I have analyzed the consumer buying behavior of the people who are going to purchase their bike from Janki Automobiles or the consumer who are living in that area so I have selected Unjha city as my area of study.

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B) Target population

In my research my target population is the consumers which are living in the Unjha city.

C) Sampling unit

“Those units that qualify to be sampled and are available during the sampling process to be selected”.

“Consumer who are going to buy bike of Hero Honda Company”

D) Sampling technique

There are mainly two types of sampling techniques “Probability sampling” and Nonprobablity sampling”. I have selected “Random sampling” method which comes under probability sampling. In random sampling all samples have equal probability of selection.

E) Sample Size

I have taken 100 customers as a sample size.

5. Data collection design:-

Primary data:

The primary data is collected through customer’s survey.

Secondary data:

The secondary data is collected from the different literatures of the company, internet, magazines, and books.

6. Data collection method:-

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http://en.mimi.hu/marketingweb/sampling.html

http://en.mimi.hu/marketingweb/sample.html


I have collected the data through survey method by communicating with the customers at the showroom and they have filled the questionnaire.

7. Data collection instrument:-

The data collection instrument is Questionnaire. I have used two type of questions in my questionnaire: Open ended and Close ended.

8. Time dimensions of the study:-

The time dimension of the study is 21 days.

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Q.1 Do you want to purchase a new bike?

Particular Respondents Percentage (%)

Yes 87 87%

No 13 13%

Total total 100%

Yes No0%

10%20%30%40%50%60%70%80%90%

Percentage(%)

87%

13%

Interpretation:-

This graph shows that 87% of consumers in my survey want to purchase a new bike. In today’s modern most of the people want their own vehicle for full filing their needs. They also want to save their precious time by using bikes.

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Q.2 If yes then which one?

Particular Respondents Percentage (%)

Hero Honda 56 64%

Bajaj 12 14%

Yamaha 8 9%

TVs 6 7%

Other 5 6%

Total 87 100%

Hero Honda Bajaj Yamaha TVs Other0%

10%

20%

30%

40%

50%

60%

70%

Percentage(%)

64%

14%9%

7%

6%

Interpretation:-

This graph shows that 64% of consumer out of 100% wants to purchase bikes of Hero Honda, 14% want to purchase bikes of Bajaj, 9% want to purchase bikes of Yamaha, 7% want to purchase bikes of TVs and 6% want to purchase bikes of other company. So through this graph we can see that the demand of the Hero Honda bikes in the market as compare to the other Companies.

Q.3 Which Factor do you consider before purchasing the bike? Rank the factors.

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Factors 1 2 3 4 5 TotalPrice 33% 32% 16% 15% 4% 100%

Brand 25% 34% 30% 7% 4% 100%

Style-design 11% 18% 36% 30% 5% 100%

Mileage 28% 12% 14% 41% 5% 100%

Other 5% 4% 4% 0% 87% 100%

1st Rank:

32%

25%

11%

27%

5%

Price Brand Style-Design Mileage Other

Interpretation:

While purchasing a bike 32% respondents are giving first rank to Price factor, 25% respondents are giving first rank to Brand factor, 11% respondents are giving first rank to Style-Design, 27% respondents are giving first rank to Mileage and 5% respondents are giving first rank to Other factor. Majority of the respondent are considering the price first before purchasing their bikes because it’s very necessary to check first that whether the particular bike is in our budget or not.

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2nd Rank:

32%

34%

18%

12%

4%


Interpretation:-

While purchasing a bike 32% respondents are giving second rank to Price factor, 34% respondents are giving second rank to Brand factor, 18% respondents are giving second rank to Style-Design, 12% respondents are giving second rank to Mileage and 4% respondents are giving second rank to Other factor. Majority of the respondents are considering Brand as a second factor before purchasing a bike. Because after considering the price first they give their second priority to Brand because they want their bike which is having a good brand image in the market.

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3rd Rank:-

16%

30%

36%

14%

4%


Interpretation:-

While purchasing a bike 16% respondents are giving third rank to Price factor,30% respondents are giving third rank to Brand factor, 36% respondents are giving third rank to Style-Design, 14% respondents are giving third rank to Mileage and 4% respondents are giving third rank to Other factor. Majority of respondents are considering Style-Design as a third factor before purchasing their bike. Because as we all know that in today’s modern everyone wants to look handsome and stylish and youngster consider that their bikes also should be of good style and good design.

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4th Rank:-

16%

8%

32%

44%


Interpretation:-

While purchasing a bike 16% respondents are giving fourth rank to Price factor,8% respondents are giving fourth rank to Brand factor, 32% respondents are giving fourth rank to Style-Design, 44% respondents are giving fourth rank to Mileage and 0% respondents are giving fourth rank to Other factor. Majority of the people are considering mileage as fourth factor before purchasing the bike. Mileage is also an important factor it also contain a important role in deciding which bike should be purchased.

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5th Rank:

4% 4%5%

5%

83%


Interpretation:-

While purchasing a bike 4% respondents are giving fifth rank to Price factor,4% respondents are giving fifth rank to Brand factor, 4% respondents are giving fifth rank to Style-Design, 5% respondents are giving fifth rank to Mileage and 83% respondents are giving fifth rank to Other factor. Majority of respondents give fifth rank to other factor.

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Q.4 If you want to buy a bike of Hero Honda in future, which bike will you prefer to buy?

Particulars Respondents Percentage(%)

Passion Plus 16 28%

Splendor 19 34%

Karizma 4 7%

Hunk 4 7%

Pleasure 2 4%

CD-Deluxe 5 9%

Glamour 2 4%

CBZ 4 7%

Total 56 100%

Passion Plus

Splen

dor

Karizm

aHunk

Pleasu

re

CD-Delu

xe

Glamour

CBZ0%

5%

10%

15%

20%

25%

30%

35%

28%

34%

7% 7%4%

9%

4%7%

Percentage(%)

Interpretation:-

This graph shows that 28% of respondents prefer to buy passion plus bikes, 34% of respondents prefer Splendor bikes, 7% of respondents prefer Karizma bikes, 7% of respondent prefer Hunk bikes, 4% respondents prefer Pleasure bikes, 9% of respondents prefer CD-Deluxe bikes, 4% of respondents prefer Glamour bikes and 7% of respondents prefer CBZ bikes.

Q.5 Do you think that your bike represent your personality?

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Particulars Respondents

Percentage (%)

Yes 49 87%

No 7 13%

Total 56 100%

Yes No0%

10%20%30%40%50%60%70%80%90%

Percentage(%)

87%

13%

Interpretation:-

This graph shows that 87% respondent think that their bike represent their personality and 13% don’t think that their bike represent their personality.

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Q.6 Do you think that your age influence your decision before choosing a bike?


Percentage (%)

Yes 38 68%No 18 32%Total 56 100%

Yes No0%

10%

20%

30%

40%

50%

60%

70%

Percentage(%)

32%

68%

Interpretation:-

According to the above graph we can conclude that 68% respondents think about their age before purchasing a bike and 32% don’t consider their age before purchasing a bike.

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Q.7 Does advertisement influences your decision in choosing your bike?


Percentage (%)

Yes 29 52%No 27 48%Total 56 100%

Yes No45%

46%

47%

48%

49%

50%

51%

52%

Percentage(%)52%

48%

Interpretation:-

This graph shows that 52% respondents says yes that their decision is influenced by advertisement and 48% says no that their decision is not influenced by advertisement.

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Q.8 Who is decision maker for purchasing bike in your family?

Particulars Respondents Percentage (%)

Father 22 40%Mother 0 0%Son 3 5%Brother 9 16%Yourself 20 36%Other 2 3%Total 56 100%

40%

5%16%

36%

3%

Father Mother Son Brother Yourself Other

Interpretation:-

From the above graph it can be seen that while making a bike purchasing decision 40% of the respondent’s decision is taken by their father, 0% decision is taken by their mother , 5% son decides their purchasing of bike, 16% decision is taken by their brother, 36% respondents decides by their own and 3% decision taken by others.

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Q.9 What do you think about the prices of bikes as compare to your budget?

Particulars Respondents Percentage (%)Over price 3 5%High price 23 41%Medium price 28 50%Low price 2 4%Total 56 100%

5%

41%

50%

4%

Over Price High Price Medium Price Low Price

Interpretation:-

According to the consumers budget 50% of the respondents thoughts that the price of the bikes is medium price, 41% of the respondents thoughts that the price of the bikes is high price, 5% of the respondents thoughts that the price of the bikes is over price, and 4% of the respondents thoughts that price of the bikes are low price.

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Q.10 Which promotional scheme will attract you to purchase a bike?


Percentage (%)

EMI Scheme 6 11%Discount Offer 18 32%Exchange Offer

13 23%

Festival Offer 7 12%Other 12 22%Total 56 100%

EMI S

chem

e

Discount O

ffer

Exch

ange

Offer

Festi

val O

fferOther

0%5%

10%15%20%25%30%35%

Percentage(%)

11%

32%

23%

12%

Interpretation:-

According to the above graph we can conclude that majority of the respondents are motivated by discount offer means 32% of respondents are stay with discount offer, 23% stay with Exchange offer, 22% of the respondents are stay with other scheme and 12% are motivated by festival offer.

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Q.11 Which source of finance will you prefer most for purchasing the bike?

Particulars Respondents Percentage (%)By Cash 44 78%By Loan 12 22%Total 56 100%

Cash Loan0%

10%20%30%40%50%60%70%80%

Percentage(%) 78%

22%

Interpretation:-

From this above graph we can conclude that 78% respondents prefer as a source of finance for their purchase of bike and 22% respondents prefer as a source of finance for their purchase of bike.

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FINDINGS

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Through this research it can be said that:

In the modern time all the people are encouraged for riding bikes and live better life.

I found that 56% of the respondents want to purchase a bike of Hero-Honda. I found that 34% of respondents want to buy Splendor bike in the future. I found that 87% of respondents think that their bike represent their

personality. I found that 68% of respondents consider their age before choosing their

bike. I found that 52% of respondents are influenced by the advertisement before

purchasing the bike. Those people who prefer their bike on the basis of casual look they prefer

splendor most. Most of the respondents are attracted by the discount offer. Most of the

people prefer to purchase a bike by cash. I found that when customer’s take decision of purchasing they give first rank

to the price then brand, style-design, mileage and other factor.

Limitations of the Project

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The period of study is just 21 days which is very less. Some of the respondents does not give proper answers of the questions Respondents refuse to give the answers of the questions Most of the people do not understand English so there is language barrier

also. Some respondents tries to avoid to fill the questionnaire.

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Conclusion

In short two wheelers industries is more volatile and there is tough competition in it, no doubt there are lots of opportunities existing in it for success they must have something innovative in their categories, the new product development also plays a vital role in this as Hero Honda has changed passion plus into passion pro and they have also modified the pleasure.

Currently in India more customers are shifting to bike are most cost effective, more fuel effective and easier to maintain. There are lots of unique features offered by the hero Honda Company. The dealers of the company are more optimistic about their future growth.

Day to day environmental balance is disturbing in future the automobiles industry will face a problem.

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Recommendations

The company should increase the advertisement in the television and newspaper so the awareness of the product can be increased in the market.

The company should reduce the sales promotion cost so that consumer can afford to purchase a bike.

The company should give various discount offer on the purchase of the bike so the consumer also feel good.

The company should provide the bikes to the dealer on time so that consumer doesn’t feel disappointment.

The company should establish the training centre for the dealer so that they can explain the features of the product to the consumers.

The company should concentrate on the price and average of the two wheelers while framing the policy because the fuel hike and car manufacturer will decrease the price of the cars in the future.

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Bibliography

Books:1. Philip Kotler ”Marketing Management” published by prentice hall

India the 13th edition.2. “Research Methodology” by C.R. Kothari published by New Age

International publishers.3. “Marketing Research” by G.C Beri published by Tata McGraw-Hill

publishing company ltd.

Website: WWW.Herohonda.com

QUESTIONNAIRE

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http://WWW.Herohonda.com/


Dear sir / madam

I am a student of V.M Patel college of Management Studies, Kherva. For academic purpose a Research project is to be made on topic of “Consumer Buying Behavior” of HERO HONDA CO. LTD. For this purpose I would like to ask you few questions I would be grateful if you spare few moments and co-operate with me.

JANDHLANI NEETA

Q.1 Do you want to purchase a new bike?

Yes No

Q.2 If yes then which one?

Hero Honda

Bajaj

Yamaha

TVs

Other

Q.3 Which factor do you consider before purchasing the bike? Rank the factors.

Factors 1 2 3 4 5

Price

Brand

Style-Design

Mileage

Other

Q.4 If you want to buy a bike of Hero Honda in future, which bike will you prefer to buy?

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Passion Plus

Splendor

Karizma

Hunk

Pleasure

CD-Deluxe

Glamour

CBZ

Q.5 Do you think that your bike represent your personality?

Yes No

Q.6 Do you think that your age influences your decision before choosing a bike?

Yes No

Q.7 Does Advertisement influences your decision in choosing your bike?

Yes No

Q.8 Who is decision maker for purchasing bike in your family?

Father

Mother

Son

Brother

Yourself

Other

Q.9 What do you think about the prices of bikes as compare to your budget?

Over price

High price

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Medium price

Low price

Q.10 Which promotional scheme will attract you to purchase a bike?

EMI Scheme at zero interest rate

Discount offer

Exchange offer

Festival offer

Other

Q.11 Which source of finance will you prefer most for purchasing the bike?

By cash

By loan

PERSONAL BIO-DATA:-

Name: _______________________________

Contact No: _______________________

Address: ________________________

________________________

Age: ___

Thank you…..

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Project report on Consumer Buying Behaviour of Hero Honda

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