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PROJECT SYNOPSIS
By N.Suryanarayana Rao
Enrolment No: 093815680
MBA (Marketing)
IGNOU,Hyderabad Centre
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PROJECT TITLE:
A Study report on “CONSUMAR BUYING BEHAVIOUR OF
HERO HONDA” at Hyderabad.
Introduction
The demand for two- wheelers in India is dependent upon factors like
availability of finance, increase in income levels, and restricted growth in public
transportation and movement in petrol prices. Expect petrol prices, all other factors
have positive correlation affects the demand for two-wheelers, due to the increase in
the running cost of a vehicle.
Two-wheelers are distinguished on different factors for different consumer
segment. For example high- powered two- wheelers have a niche market as racing /
sporting vehicles and have a special appeal to youngsters. Teenagers and women
prefer easy maneuverability / handing ease. Fuel efficiency and low maintenance
lure urbanities. The lower end of the market looks for durability, value for money
and higher resale value.
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The motorcycle is being increasingly used youngsters / bachelors in urban
areas and by rural folk as a study means of personal transportation. Bigger wheels,
better road grip, higher ground clearance, power, fuel efficiency, low maintenance
cost are the major attraction of this segment.
Over the past few years, the two- wheelers market has witnessed a major shift
from scooter to motorbikes.
However, the young boys, who want to assert themselves in their friend circle
and want to make a statement about their young personality, are purchasing high-
powered bikes.
The middle class youth especially those in marketing and jobs are mostly
buying Hero Honda. In fact, the young couples and bachelors are going for bikes for
their good average and speed. Youngsters feel that it helps make good impression on
girls when you have motorcycles.
The market experts admit that it is the lean period for sale of bikes as well
as scooters. They say that the sales usually pick up at the end of financial year or
during festival season, when the companies offer some discounts or freebies. Despite
increasing heat of the competition, the Hero Honda is still trying to hold the 100cc
market through splendor and passion models.
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The dealers say that the Hero Honda bikes are more preferred by educated
urban youth and executives to the rural ties, where the financiers are not ready to
risks due to in fluttering and difficulty to calculate agriculture incomes.
The customer says that the manufactures would have to share the profits
with consumers instead of just relying on advertising campaign. The entry of
Chinese bikes, which could force them to cut down prices, may have been stalled by
higher duties for time being, but it cannot be postponed forever. They would have
come up with more fuel efficient and cheap models that still determining factors to
boost sales.
Style and economy offered by the motorcycles manufacturing companies are
what has given a fillip to the motorbike segment. With this, the market today is
witnessing the entry of a large number of innovative models, the latest ones being
karizmas (230cc 4 stroke) by Hero Honda, cruiser Thunderbird (350cc 4 stroke) by
Royal Enfield, pulsar (150cc 4 stroke) by bajaj and various others.
It is primarily those between age groups of 16 years and 40 years who form
the major user segment for motorbikes. Preferences differ – a majority voting for
looks.
Hero Honda which claims 47 percent of the market share has two best sellers –
splendor the four stroke bike (100cc) and CBZ (150cc) that have captured the market
for quite long, once again due to looks and fuel economy. Other popular bikes by the
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company are passion a hot favorite because of the style, look and fuel economy it
offers says Brij Inder Singh, sales manager, Hero Honda, “despite the price
differentials between motorcycles and scooters not
being too high, having a motorcycle gives one the feeling of up gradation”. He also
attributes the growth of this segment to the initiatives being taken by the companies
including more introductions in the economy class bikes and easy financing facilities.
Consumers Buyer Behaviour:
Consumer buyer behaviour is influenced by four keys sets of buyer
characteristics; cultural, social, personal, and psychological. Although many of these
factors cannot be influenced by the marketer, they can be useful in identifying
interested buyers and in shaping products and appeals to severe consumer needs
better. Culture3 is the most basic determinant of a person’s wants and behavior. It
includes the basic values, perceptions, preference, and behavior \s that a person learns
from family and other important instructions. Subcultures are “cultures within
cultures” that have a distinct values and lifestyles and can be based on anything from
age to ethnicity. People with different culture and sub culture characteristics have
different product and brand preferences. As a result, marketers may want to faces
their marketing programs on the special needs of certain groups.
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Social factors influence buyer’s behavior. A person’s reference group-family,
friends, social organizations, professional associations- strongly affect product and
brand choices. The buyer’s age, life-cycle stage, occupation, economic
circumstances, lifestyle, personality, and other personal. Characteristics influence his
or her buying decisions. Consumer life-styles the pattern of acting and interacting in
the world are also important influences on purchase decisions.
Finally, consumer-buying behavior is influenced by four major psychological
factors- motivation, perception, learning, and beliefs and attitudes. Each of these
factors provides a different perspective for understanding the workings of the buyer’s
black box.
MODEL OF CONSUMER BEHAVIOR
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Consumer purchases are influenced strongly by or there are four factors.
01. External Factor
02Internal Factor
03. Marketing Factor
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Factors Affecting Consumer Behavior:
Marketers do not want their target audience to look only at the models in their ads.
They want to communicate something about their products as well. Marketers often
Buyer
Psychological
Personal
Social
Culture
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use attractive models,humour, other factors to attract the target market’s interest.
Information processing is a series of activities by which stimuli are perceived,
transformed in to information, and stored. Information processing model has four
major steps or stages a)Exposure b) Attention c)Interpretation d) Memory
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Why Consumers Buy
As we discussed in the what is marketing? Customers make purchases in order
to satisfy needs. Some of these needs are basic and must be filled by everyone
on the planet (e.g., food, shelter) while others are not required for basic survival
and vary depending on the person. It probably makes more sense to classify
needs that are not a necessity as wants or desires. In fact, in many countries
where the standard of living is very high, a large portion of the population’s
income is spent on wants and desires rather than on basic needs.
In this tutorial when we mention the consumer we are referring to the actual
buyer, the person spending the money. But is should also be pointed out that the
one who does the buying is not necessarily the user of what is bought and that
others may be involved in the buying decision in addition to the actual buyer.
While the purchasing process in the consumer market is not as complex as the
business market, having multiple people involved in a purchase decision is not
unusual. For example, in planning for a family vacation the mother may make
the hotel reservations but others in the family may have input on the hotel
choice. Similarly, a father may purchase snacks at the grocery store but his
young child may be the one who selected it from the store shelf.
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So understanding consumer purchase behavior involves not only understanding
how decisions are made but also understanding the dynamics that influence
purchases.
What Influences Purchasing
As we discussed the decision-making process for consumers is anything but
straight forward. There are many factors that can affect this process as a person
works through the purchase decision. The number of potential influences on
consumer behavior is limitless. However, marketers are well served to
understand the KEY influences. By doing so they may be in a position to tailor
their marketing efforts to take advantage of these influences in a way that will
satisfy the consumer and the marketer (remember this is a key part of the
definition of marketing).
For the purposes of this tutorial we will break these influences down into three
main categories: Internal, External and Marketing. However, those interested in
learning more about customer buying activity may want to consult one or more
consumer behavior books where they will find additional methods for
explaining consumer buying behavior.
For the most part the influences are not mutually exclusive. Instead, they are all
interconnected and, as we will see, work together to form who we are and how
we behave.
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For each of the influences that are discussed we will provide a basic description
and also suggest its implication to marketers. Bear in mind we only provide a
few marketing implications for each influence; clearly there are many more.
NEED OF THE STUDY:
Customers consider various factors for purchasing a motorcycle. The
factors they consider are based on certain demographic variables such as
income, age, occupation etc. It also depends on attributes and lifestyle of the
customer buying behavior becomes essential to get a competitive edge.
OBJECTIVES OF THE STUDY
Primary Objective: The main objective of the study is to study the buying
motives of the customers regarding two wheelers w.r.t Hero Honda.
Secondary Objectives
1. To know the influence of demographic factors on consumer buying behavior
of Hero Honda.
2. To know the brand performance of Hero Honda on consumers.
3. To know the buying motives of purchasing Hero Honda.
RESEARCH METHODOLOGY:
Research Design:
The research design used for this project is exploratory and descriptive. The
exploratory research was conducted using secondary data.
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The descriptive research was conducted through personal interviews with
respondent using questionnaire.
Secondary Data:
Secondary data are those, which are collected from existing data.
Secondary data for this study include appropriate material from newspaper,
Magazines, Broachers, Company Reports, Standard Text Books, and
information from Internet has also been acquired wherever necessary.
Primary Data:
Primary data are those, which are collected fresh and for the first time and
this happen to be original in character. In this study primary data was collected
through conducting interview using questionnaire.
Sampling Design:
A research design is a logical and systematic plan prepared for directing a
research study it specifies the methodology and technique to be adopted for
achieving the objectives. It constitutes the blueprint for the collection,
measurement and analysis of data.
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The main aim of the study is to evaluate the brand image of Hero Honda. The
study is descriptive in nature. Surveys are best-suited method for descriptive
research. So survey method is used for the study.
The preparation of a research plan for a study aids in establishing direction to
the study and knowing exactly what has to be done and how and when it has to
be done at every stage.
A research plan describes the boundaries of research activities and enables the
research to channel his energies in the right work. With clear research
objectives, in view the research can proceed systematically towards his
achievements.
Sampling Procedures:
Sampling is a systematic approach for selecting a few elements from an
entire collection of units (population) in order to make some inference about the
total population it is a small specimen or a segment of the whole population
representing its general qualities as for as possible. The study is to be
undertaken by convenience sampling.
Convenience sampling is a non-profitability sampling. T means selecting
sample units in just hit and misses fashion i.e., interviewing people whom you
happen to meet.
Sampling Unit:
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The survey is to be conducted using two wheelers only.
Sampling Frame:
The population for the study consists of Hero Honda bike owners in the
cities of Hyderabad and secunderabad.
Sampling Size:
The study is conducted on a sample of 100 respondents.
DATA ANALYSIS:
The instrument used for this study is an interview schedule. Questions
related to objectives of the study from the major portion of the interview
schedule. It mainly consists of multiple-choice questions so that the
respondents can mark one or more of the several choice of answers. Secondary
data has been gathered from many published sources such as Newspapers,
Journals, Magazines, Company Reports, standard textbooks and information
from Internet has also been acquired wherever necessary.
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The Data analysis will be done by using various Statitical tools such as
cross-tables, Charts, Graphs and Chi-square techniques.
SCOPE OF THE STUDY
The study is aimed at finding out the consumer’s opinion towards Hero Motor Bikes
The researcher has taken up 100 samples for the study, in Hyderabad city. The
study would reveal the intensity of gap between company’s deliverance and the
consumer’s expectation. The revelation of the study would keep the company
informed about the consumer’s Buying Behaviors towards the Motor bikes and try to
come up solutions to the problems faced during purchasing and post purchasing of
Hero Motor Bikes.
LIMITATIONS OF THE STUDY
a) The Research was conducted in this of Hyderabad and secunderabad.
b) The sample size limited to 100.
c) The views and purpose of respondent may change on the period of time.
d) The Duration of project is limited to 60 days.
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SCOPE FOR FURTHER RESEARCH:
There is always a scope for the Hero Honda Bikes to enter the new level with
innovative technologies, improved services and Customer Relationship
Practices. As the other competitors are entering the market with variant models
in 100cc, 125cc and 150cc segments, there the scope and potential for Hero
Honda to capture each segment with majority of share by studying the behavior
of the consumers with utmost perfection and come up with the solutions that
enhances customer loyalty and satisfaction.