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(1.1.1)Background of Hero Motocorp

Hero Motocorp Limited is the World's single largest two-wheeler motorcycle
company. The company is engaged in the manufacture of two wheelers
motorcycles and its parts. The company has three manufacturing facilities
namely Dharuhera, Gurgaon at Haryana and Haridwar at Uttarakhand.The
company is based in New Delhi, India. The company offers a range of bikes
starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion and
Passion Pro.

The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour
F1. It also has an offering called Achiever in 135 cubic centimeter segment. In
the 150 cubic centimeters and above the company offers brands like Hunk, CBZ
X-treme, Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter
scooter, Pleasure.

Hero MotoCorp Limited was incorporated in the year 1984 with the name Hero
Honda Motors Ltd. The company was established as a joint venture company
between Honda Motor Company of Japan and Hero Group. In the year 1983,
they signed a joint collaboration agreement and formed the company.

The joint venture between India's Hero Group and Honda Motor Company, Japan
has not only created the world's single largest two wheeler company but also one
of the most successful joint ventures worldwide.

In the year 1985, the company commenced their commercial production at
Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the
market. In the year 1989, they launched the new motorcycle model, Sleek in the
market and in the year 1991, they introduced new motorcycle model, CD 100 SS
in the market. In the year 1995, the company introduced their extraordinary

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product, Splendor in the market. In the year 1997, the company inaugurated their
second manufacturing facility at Gurgaon in Haryana.

Also, they introduced new motorcycle model, Street in the market. In the year
1999, they launched Hero Honda CBZ, the first 150cc motorcycle in the Indian
two wheeler industry.

In the year 2001, the company introduced new models, Passion and Joy in the
market. In the next year, they introduced new models, Dawn and Ambition in the
market. In the year 2003, the company launched new motorcycle models namely,
CD Dawn, Splendor+ and Passion Plus in the market. Also, they launched Hero
Honda Karizma, the industry's first 223cc motorcycle. In the year 2004, they
introduced new models, Ambition 135 and CBZ* in the market.

During the year, they renewed the joint technical agreement with the Honda
Motors Company, Japan. In the year 2005, the company launched Super
Splendor, CD Deluxe, Glamour and Achiever in the market.

In the year 2006, the company forayed into scotter segment and launched 100cc
gearless scotter, Pleasure in the market. In the year 2007, the company
launched Splendor NXG, CD Deluxe, Passion Plus and Hunk in the market.

During the year 2007-08, the company commissioned their third plant at
Haridwar in Uttarakhand with an initial installed capacity of 500,000 units. This
plant had lean manufacturing and practices that ensure efficiency. During the
year, the company launched new models (including variants) including Splendor
NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative
Splendor+ and a refreshed version of Pleasure.

During the year 2008-09, the company increased the installed capacity of
Motorised 2 wheelers upto 350CC engine by 1800000 Nos to 5200000 Nos.

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Also, they launched eight models: Passion Pro (100 cubic capacity-4 Stroke),
CBZ-Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics,
Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb)
and HUNK Special Edition. Also, they launched new motorcycle model, Karizma
- ZMR in the market.

During the year 2009-10, the company increased the installed capacity of
Motorized 2 wheelers upto 350CC engine by 200000 Nos to 5400000 Nos. The
company launched nine new models during the year. During the year 2010-11,
the company launched six new models including variants of existing models
successfully. They refreshed Glamour and Glamour FI. They introduced the New
Hunk, Super Splendor and Splendor Pro.

The company launched the new upgraded versions of CBZ X-treme and
Karizma. Also, they breached the landmark 5 million figure cumulative sales in a
single year. During the year, the Indian Promoter Group of the company, which
comprised of Hero Investments Pvt Ltd (HIPL)
1
, Bahadur Chand Investment Pvt
Ltd (BCIPL)
2
and Hero Cycles Limited
3
(Hero Cycles) re-aligned the shareholding
in the company, following a family agreement.

As a result, Hero Cycles transferred its shareholding in the company to HIPL on
May 28, 2010. As a result of these transactions, the Indian Promoter Group of
the company now comprises of HIPL
1
and BCIPL
2
owned and controlled entirely
by the Munjal Family headed by Brijmohan Lall Munjal. Also, during the year, the
Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered into a
Share Transfer Agreement (the Agreement) on January 22, 2011. As per the
terms of the Agreement, Honda had agreed to transfer its entire shareholding of
26% in the Company to the Indian Promoter Group, bringing an end to the joint
venture between the two promoter groups of the company.



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(1.1.2) Background of Hero Honda

Hero Honda Motors Ltd. is a result of the joint venture between India's Hero
Group and Japanese Honda Motors Company in the year 1983. This joint
venture has not only created the world's single largest two wheeler company but
also one of the most successful joint ventures worldwide. Hero Honda is globally
known of being the most fuel-efficient and the largest CBZ selling Indian
Motorcycle Company. This is a relationship so harmonious that Hero Honda has
managed to achieve indigenization of over 95%.
The below chart shows the golden years in the history of Hero Honda:-




















1985 Hero Honda CD-100
1991 Hero Honda CD-100 SS
1994 Hero Honda Splendor
1999 Hero Honda CBZ
2001 Hero Honda PASSION
2002 Hero Honda DAWN, AMBITION
2003 Hero Honda CD-DAWN, SPLENDOR +, PASSION + and
Hero Honda KARIZMA
2005 Hero Honda SUPER-SPLENDOR, CD-DELUX,
GLAMOUR, ACHIEVER
Table No. 1.1.2

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The company is committed to provide the customer with excellence. A rich
background of producing high value products at reasonable prices led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer. During 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the roads. The
company possesses three manufacturing units based at Dharuhera, Gurgaon
and Haridwar are capable to produce 4.4 million units per year. They introduced
new generation motorcycles that set industry benchmarks for fuel thrift and low
emission.

The unique features like fuel conservation, safety riding courses and mobile
workshops helped the group reach in the interiors of the country. Well-
entrenched in the domestic market, Hero Honda Motors 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.
The gross sales of Hero Honda by March end'2008 was 33,371,43 Crores.








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(1.2)Rationale of Study

When we think about doing research about two wheeler bike we have
come to know that Hero Motocorp or Hero Honda are the company
in the India in two wheeler bike industries.
Whether brand image impact on consumer buying behavior or not.












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(1.3) Objectives of the Project

To study whether Brand Image impact on consumer buying behavior or
not.

To Study and analysis the product mix of Hero Moto Corp (previously
Hero Honda).

To study of customer satisfaction of Hero Motocorp and Honda

















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(1.4) Data Resource & Methodology

Sample size: 300 Bike Users of Gandhinagar

Sampling technique: Convenience Sampling Technique

Sampling instrument: Questionnaire


Data source:-
Primary data:
By conducting the survey through questionnaire

Secondary data:
By internet
By various magazine
By old Article
By various marketing books

Period of study: - 3 Months
Area of study: - Gandhinagar




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(1.5) Chaptarisation Scheme
Chapter:-1 Introduction
(1.1-1) Background of Hero Honda
(1.1-2) Background of Hero Motocorp
(1.2) Rational of Study
(1.3) Objective of The Study
(1.4) Data Resource & Methodology
(1.5) Chapterisation Scheme
(1.6) Limitation of Project
Chapter:-2 Marketing Mix
(2.1) Product
(2.2) Price
(2.3) Promotion
(2.4) Place
Chapter:-3 Consumer Buying Behavior
(3.1) Introduction
(3.2) Factor Influencing Consumer Buying Behavior
Chapter:-4 Customer Satisfaction
(4.1) Customerisation
(4.2) Customer Satisfaction In Service
(4.3) Marketing
Chapter:-5 Analysis & Interpretation
Chapter: -6 Conclusion


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(1.6)Limitations of the Project

Study is limited up to demerged only two companies.
It is limited up to city area of Gandhinagar.
It is limited up to survey of 300 users.
This is the project for our study purpose only and as per our knowledge.
The data found out from this is not valid and not so big sample size that
we can give any suggestion.
Whatever companys information given in this project is based on the
information available on the net and on the web site of the company?











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(2.1) Marketing Mix: -

Figure 2.1
The whole marketing concept depends upon the four major factors, which is
called four Ps of marketing, which falls under the heading of marketing mix. The
recent exponential growth in broadcasting alternatives means that marketing has
become priority. Organizations must learn how to market themselves with greater
success, despite opposition from their competitors. Theoretically, each of the
product, price, place and promotion variables can be controlled by organizations

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and at the same time. Taken together, they constitute the marketing mix. An
organization must come up with a mix that will clearly differentiate its product
from those of its competitors, while simultaneously considering the corporate
goals. in our case our previously Hero Honda and current Hero Motocorp both
have their marketing mix strategy.

Many people have already heard about the 4ps of marketing. Generally
speaking, the so-called marketing mix is a framework that acts as a guideline
for marketers to implement a marketing concept. It consists of a set of major
decision areas that a company needs to manage in order to at least satisfy
consumer needs.

(2.1) PRODUCT: -

The first element of the 4 Ps of marketing is product. It focuses on the individual
goods and the product line. At heart of great brand is a great product. Product is
a key element in the market offering. One of the definitions of product is as
under.

Anything that can be offered to a market for attention, acquisition, use or
consumption that might satisfy a want or need. It includes physical objects,
services, persons, places, organizations and ideas.

A product is not only a tangible offering, but it can more than that. A product is
anything that can be offered to market to satisfy a want or need. Products that
are marketed are including physical goods, services, experience, events,
persons, places, properties, organizations, information and ideas.




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Product levels: -

There are five different product levels, each of which represents a customer
value hierarchy. These product levels are described as below.

Core benefit:
The most fundamental level is the core benefit, the fundamental service or
benefit that the customer is really buying.

Basic products:
At this level, the marketer has to convert the core benefit into the basic product.
Because his major emphasis is to satisfy basic need of customer.

Expected product:
The marketer prepares an expected product, a set of attributes and conditions
buyer normally expect when they purchase this product.

Augmented level:
The marketer prepares an augmented product that exceeds customers
expectations. Product augmentation leads the marketer to look at the users total
consumption system.

According to Levitt: - The new competition is not between what companies
produce, but between what they add to their products in term of services,
advertising, customers advice and other things that people value.

Potential product:
At the fifth level stands the potential product, which encompasses all the possible
augmentations and transformation the product or offering might undergo in the

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future. Here is where companies search for new ways to satisfy customers and
distinguish their offer.

Successful companies add benefits to their offering that not only satisfy
customers but also surprises and delight them. Delighting customers is a matter
of exceeding expectations.

Product hierarchy:
Each product is related to certain other products. The product hierarchy stretches
from basic needs to particular items that satisfy those needs. We can identify six
levels of the product hierarchy.
Product category:

Product Line:
A product line is a group of products within a product class that are closely
related because they perform similar kind of function, are sold to the same
customer groups, are marketed through the same outlets or channels, or fall
within given price ranges.

Product type:
A product type refers to a group of items within a product line that share one of
several possible forms of the product.

Item:
It is also called stock keeping unit or product variant. A distinct unit within a brand
or product line distinguishable by size, price, appearance, or some other attribute
is an item.

The product hierarchy described above can be summed up in the figure
mentioned below:

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Product mix:
A product mix is also called a product assortment. It is a set of all products and
items a particular seller offers for sale. A companys product mix has a certain
width, length, depth and consistency.

Here, we are taking the example of Company as our product mix.

Product width:
The product of a product mix refers to how many different products lines the
company carries. Like laptop & other gadgets with the same company.

Product length:
The length of the product line refers to the total number of items in the line.

Product depth:
The depth of the product mix refers to how many variants are offered of each
product in the line.

Product consistency:
The consistency of the product mix refers to how closely relate the various
product lines are in end use, production requirements, distribution channels, or
some other way.

A two-wheeler is used as a personal/family vehicle or a goods carrier in the
enveloping countries, whereas it is confined to sports/racing (heavy motorcycles)
4

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

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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, Hero Motocorp 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 15% of the production in FY2011
5
was 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.














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4 Ps in Hero Motocorp and Hero Honda


Figure No. 2.1.1

Product Strategies of Hero Moto Corp

Hero Hero shifted its focus from catering to the fuel efficient conscious
consumer to try and occupy other segments of the motorbike market and
therefore the new product launches from Hero Moto Corp in the last three year
have been in this direction. The company has also upgraded some of its bikes to
stay in contention and to meet Euro emission norms. The new underlining theme
for the company One for everyone has led to the launching of new products,
which are as follows:






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(2.2)Price

From the point of view of manufacturer only, price represents the quality of
money received by the firm of seller. Price is the most important factor of
marketing mix, which gives absolute percentage about the purchase and sales.

Price is the one element of the marketing mix that produces revenue, the other
elements produce costs. Price is one of the easiest marketing mix element to
adjust product features channels and event promotion. Price also communicates
with the market by which medium company can show their intention towards
value positioning of its product or brand.

In the order to arrive at the most acceptable price level, the marketer needs to
have the information on 3 Cs.

Customer :
Price affects the customers by their income levels their willingness to purchase,
ability to pay etc.

Competitors :
The company decides their product price according to their competitors price.
The poor company ignores their competitors. The average company copies their
competitors price. The willing company leads their competitors price.







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Pricing Strategies of Hero Motocorp & Hero Honda

The company has a policy to price its product very competitively. In todays
world, one cannot has a skimming pricing says Mr. Tapan, marketing manager,
Hero Moto Corp. Necessarily the pricing policy is completely a blend of two
strategies i.e. Penetration and Skimming.

We are in the process of keeping our product increasing popular and affordable.
The company keeps telling its customers to think about Quality rather than price.
Further if one talks about the changes in the price in the last three years, the
prices have never been changed except the budgets except once in APRIL
2011,when the company started off with their celebration offer, and thus
decided to sanctioned a discount and curtail on every Model Rs 1001\-. The
company is surely in a business of delivering quality rather than price. For
instance the Boxer, which is of only 29,990 and is the cheapest bike of the
industry. The company gives importance to the quality rather than cheap
products.

Well Hero Moto Corp has bikes at different price point but there is one common
thing that is they are priced at a premium of INR 2000- 3000 from the competitors
and it seems their strategy is working fine with the target customers as it is the
largest seller of bikes in the Indian market with a market share of 48 %
.Customers are ready to shell out the extra money because they believe and its
fact that the fuel efficiency of the bikes is much better than its competitors the
different price points for Hero Motors Limited are :

NAME PRICE
Delux------------------- 32,000
Splendor --------------- 41,000
Passion ---------------- 44,000
Cbz--------------------- 52,000-60,000

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Thus we find that HML has bikes for every one for entry level customers they
have dawn which is a no frill attached product whose emphasis is on mileage
with performance .And for customers who like to have bike which is good at
performance and with descent looks they have Splendor which is their fastest
selling bike and account for half of the total sales.

Customers who are looking for style with performance can go for Passion which
is a huge success among the urban class as it is priced little bit higher than
splendor and the looks of the bike are astounding. For customers who want style
and power they have CBZ which is targeted towards the premium segment and it
was a runaway success initially but is not a hot seller now due to some problems.

Hero Moto Corp is planning to introduce few more models in years time in order
to make their portfolio of products more versatile.


















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(2.3)PROMOTION

Promotion is the 3
rd
p of marketing mix.

All the activities which are undertaken by the entrepreneur to promote the
product. Promotion tells something about company. Promotion can be defined
as activities that communicate the product or services and its merits to target
customers and persuade them to buy.

Promotion is the advertising and selling part of marketing. Often, promotions are
categorized into push versus pull. Advertising pulls by making consumer aware
of, and ask for the product or service. Incentives, such as premiums or price
reductions, push the product out the door encouraging the customers to
purchase in volume, more, or more often then he would otherwise purchase.

Promotion is concept of organizational culture, popularly organized as artifacts-
everything that can be seen, heard and felt, such the day-to-day behavior,
physical environment, and communication of an organization. Thus, out of the
4ps of these scooterettes compete exclusively in the area of promotion.
Promotion can be done by advertising, sales promotions, sales forces, public
relations and direct marketing.

Advertising:
Advertising offers a reason to buy. The Companies advertise their product
through media, banners, hoardings, ambassadors and etc.

Sales Promotion:
Sales promotion offers an incentive to buy. For sales promotion, companies
held many offers like exchange of old models to new one by paying very less
sum of money.

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Public Relation:
Public relation involves a variety of programme designed to promote or protect a
companys image or its individual product. Sometimes companies also prefer
seminars from which can they can show the companys profile and also they can
create a good image of the company.

Direct Marketing:
Sales force is one of the marketing services from which manufacturer invite
Customer Company.

Sales Force:
Sales force is one of the marketing services from which manufacturer invite
Customer Company.

Promotional Strategies:
Hero Moto Corp's `Ride Safe and Good Rider' campaign is aimed at
communicating the philosophy of delivering safe products and promoting good
driving for the overall safety of the Hero Moto Corp customer.

Promotion in this sector cannot be like that in the Fast Moving Auto pats
(Automobile) sector. The promotions in this sector are like 0% finance schemes
and other sort of things. The company takes the services of many good and
reputed advertising agencies like Reddifuusion, Lintas, Sachi & Sachi and others.
The company has also signed a kind of agreement with two celebrities just now
to be their brand ambassadors. Hero Moto Corp, a leading manufacturer of
motorcycles, has roped in film actor Hrithik Roshan and captain of Indian Cricket
team Sourav Ganguly as its brand ambassadors for three years till 2003.

They would endorse the company products, attend corporate and brand events
and help promote its "we care" campaign comprising safety riding, environment,
and friendliness.

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Hrithik and Ganguly said they were glad to be associated with Hero Moto Corp.
Hero has embarked upon an ambitious project to achieve sale of one million
bikes this year with a market share of 47 per cent. The turnover would be in
excess of Rs. 3000 crore. In October alone, 1,12,000 motorcycles have been
sold, Compared to 66,063 units in the corresponding period last year, the
increase in sales is a phenomenal 69 per cent.

Sports and Entertainment:

In sports promotions, Hero Moto Corp will stick to cricket (following title
sponsorship of the World Cup last year, it has signed a three-year contract for
Hero-Hero-Salve Challenger Trophy)
11
and golf (it will continue with Hero-Hero
Masters Golf)
12
.

For The CBZ, this year it is planning to run commercials in youth channels like
MTV, Discovery and Star Movies. In sports promotions, Hero Moto Corp will stick
to cricket, it has signed a three-year contract for Hero-Hero-Salve Challenger
Trophy) and golf (it will continue with Hero-Hero Masters Golf)
12
. Moreover, In
terms of media exposure, the company is looking at sports, movies, and news

Sales Promotion:

Hero Moto Corp regularly has promotions running for its dealers as well as
customers in order to ensure that there is a interest among the target customers
about the company and its products. Normally Company participates in road
shows, Sponsors college festivals, promotes eco friendly initiatives, Have festive
Season offers, and sometimes price discounts to attract the attention of the
people. These promotions are targeted mainly on youngsters as they are the
primary buyers of bikes.



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Advertising & Promotion:

Hero Moto Corp is enhancing the A&P budget by around 35 per cent from Rs 41
crore in 2010-2011. Apart from concentrating on mainstream Splendor-- the
world's largest selling bike-- and upscale CBZ motorcycles, Hero Moto Corp has
identified ``soft areas'' like services and spares parts for the purpose of intense
communication.

While customer references-- and not media strategy-- are expected to support
the CD brand sales, Hero Moto Corp will look at social areas -- like civic issues,
association with NGOs
13
, contribution to greener causes-- for corporate
communications.

The corporate campaign will be largely complemented by on-ground initiatives
under the umbrella brand of ``We Care'', incorporating activities in the arena of
community services, safety and services programmes, tree-plantations and
environmental-friendly projects.

Personal Selling:

As a part of sales promotion, the company also does personal selling to the
corporate sector. This is done in case of institutional selling. In the beginning only
the CSD
14
canteens were included but now even Multi National Companies
(MNC)
15
also form a part of the institutional selling.

Heros corporate week-The week in December 2001 was observed as the
corporate week. This week was observed in the year 201 to spread awareness
among the corporate employees about the company and its range of products. In
this week various vendors participated as well as various dealers participated.
This platform was also used as making and building more cordial relations
among the employees and the dealers.

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(2.4)Place

Place is the 4
th
element of 4ps of marketing. Place includes all the company
activities that make the product or service available to target customer. In
sample words, place means-where and how a product is distributed and sold.
Whether to sell it directly, through a broker, or a distributor? Whether to run retail
store or sell only to retailer? In case of service, whether to deliver it in person or
through the Internet or telephone? These questions all involve in place

Channel Distribution:

Hero Moto Corp continues to have the same policy of directly approaching the
dealers. However the company has made some changes in the dealership
requirements. The company has now divided its into three categories, A, B and
C depending upon the status of the town. Hero Motocorp has made some
regulations and its dealers are bound to fulfill specific requirements for their
showroom and workshops in terms of area. The company has also started
focusing on the rural marketing such as Agartala (Tripura), Tinsukia (Assam) and
Bhagalpur (Bihar). The company has also increased the number of dealers from
350 to 400.

Distribution Channels:

Hero Moto Corp has very strong Distribution channel in India. Hero Moto Corp
distributions their through Regional officer, Authorized dealers Etc.







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Hero Motocorp in India has 3500 Authorized Dealer.

Criteria for selection of distributions;
Financial position to the distributors
Goodwill
Situation of show room
Past record
Experience
Promotion

Sale locating customers

Hero Motocorp regularly has promotions running for its dealers as well as
customers in order to ensure that there is a interest among the target customers
about the company and its products. Normally Company participates in road
shows, Sponsors college festivals, promotes eco friendly initiatives, Have festive
Season offers, and sometimes price discounts to attract the attention of the
people. These promotions are targeted mainly on youngsters as they are the
primary buyers of bikes.

The company launches financial schemes as Zero % finance schemes in
collaboration with different banks so that customers can pick bikes in easy
installments. The effect of these promotions can be understood from the fact that
35 % of bikes are sold through this medium.

Qualifying customers

"We are happy with our financial performance. It gives immense joy to see this
kind of results in the 25th year of our company. I wish to thank all our
stakeholders customers, associates, dealer friends, ancillaries and also our
joint venture partners Hero Moto Corp Co for their continuous support."

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(3.1)Introduction

Consumer behavior is a study of how individual make decisions to spend their
available resources (time, money, and effort) on consumption related items (what
they buy, why they buy, how often they buy and use a product or service). The
heterogeneity among people across the world makes understanding consumer
buying behavior an intricate and challenging task. The consumers identity, his
beliefs, specific needs, attitudes and the kind of product and brands available in
the product category influence his buying behavior. The marketing efforts of a
film have a profound impact on the buying decisions of customers. Therefore,
marketers attempt to obtain an in-depth knowledge of customers buying
behavior. The success or failure of a product or service is directly related to the
buying behavior of the customers helps marketers come up with innovative
product mixes.

Finally, buyer behavior acts as an imperative tool in the hands of marketers to
forecast the future buying behavior of customer and device marketing strategies
accordingly in order to create long term customer relationship.

(3.2)FACTORS INFLUECING CONSUMER BUYING BEHAVIOR:-

Consumer buying behavior is affecting by various factors that determine the
product and brand preferences of consumer. It is essential for marketers to
understand the impact of these factors on consumer buying because it helps
them design marketing strategies to appeal to consumer preferences.





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Culture Factor:

The culture factors that influence consumer buying behavior include the culture
sub-culture social class of the buyer .

Culture

Culture is considered as a set of rules, value, beliefs, behavior and concepts that
is common to and binds together the member of a society. It is usually passed on
from one generation to the other. During our life there is constant conscious
and unconscious- presser on us to display certain type of behavior.

Perception, wants, and behavior learnt by an individual, influence his buying
behavior. Our culture reflect what we eat, what we wear, the code of conduct, our
buying habits, consumption pattern and the way we use and dispose products.

Subculture

Every culture has its own set of subculture. A subculture is a culture followed by
a group of people within a culture that is distinctly identified within a larger
society. These groups have similar habits, behavior pattern shared value system,
buying behavior on the basis of their age, relation, common experiences or even
geographic location. To tackle the problem created by subculture deferences
marketers need to understand the requirement of the subculture groups and
adopt strategies like altering the product, promotion, packaging or price suitable
to this group.




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Social class

Social class refers to the classification of members of the society into a hierarchy
of distinct classis so that every individual in a class has approximately same
position in the society

Social class can be subdivided into four categories viz.

Upper class: this class consists of people who are rich & possess considerable
wealth, for example, people with large businesses and wealthy corporate
executives.

Upper middle class: this class consists of well-educated people holding top class
positions in middle size firm, or professionals who are successful. They have a
strong drive for success and indulge in shopping for goods that speak of their
social status.


Middle class: this class consists of white collar workers like middle level and
junior executives, sales people, academicians, small business owners, etc. these
people lead a conservative lifestyle and spend moderately.

Lower class: this class consists of blue collar workers like factory laborers, semi-
skilled and unskilled laborers in the unorganized sector. These people are more
family oriented and depend on their family for economic and emotional support.
Their families are usually male dominated.






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Social factors

Family, friends, formal social groups, colleagues at work and consumer action
groups influence the consumers buying behavior significantly. An individuals
family greatly influences the buying patterns of the individual. However, this
depends on the amount of interaction he has with other family members.
Subsequently, friends are the next important social group that influences the
buying behavior of the individual. A friendship group is an informal and
unstructured group. The influence of group is significant on individual buying
process, because things that are not normally discussed with the family member
are discussed with friends.

During the working hour, and individual normally has formal and informal
discussion with other employees and therefore, there exists and ample
opportunity for influencing the buying behavior of the individual.

Reference groups

An individuals attitude, value and behavior are influence by different groups.
These groups are called reference groups and they have a direct or indirect
influence on the individual. Buying Behavior of a consumer is largely influenced
by the reference group to which they belong or aspire to belong. Reference
group can be of two types (1) Primary reference group (2) Membership
reference group

Family

A family is defined as two or more persons related by birth, marriage or adoption
& reside together. A family is a small reference group but it s prominent in
influencing consumer behavior.


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Psychological factor

Psychological factor that influence consumer buyer behavior are motivation,
perception, attitude, and learning.

Motivation

A motive is a strong urge that drives a persons activities toward unfulfilled needs
and wants. Needs are motivational elements behind the purchasing decision of
customers.

Customers tend to satisfy their needs on the basis of the intensity or requirement
of the needs. Wants that are conditioned by certain motives are known as buying
motives. Marketer must work to create these wants in the customer and
target/position their product in such a way as to invoke desire in the customer to
fulfill these wants.

Perception

Perception is defined as the process by which an individual selects, organizes
and interprets stimuli into meaningful thoughts and picture. Customers base their
perception on their needs, wants, past experiences and something that that they
consider to be true.
Customer perceive their environment through the sense of touch, smell,
taste, hearing, etc.
Customers buying decisions are also influence by the risk factor involved.
Understanding the customers perception helps the marketers position their
product better than that of the competitors. it helps them to develop the right
stores image, product quality, price, distribution channel, etc.

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Beliefs and Attitude

A belief is a descriptive image or thought that an individual holds about
something. People acquire beliefs and attitudes through experience as well as
learning. It influences the buying behavior.

A persons attitude is a set of feelings and the way in which they reacts to a given
ideas or thought. Attitudes can be positive, negative or neutral. Customer
attitudes and beliefs influence his perception and buying behavior. Customer
attitude are based on their past experience with the product and through their
interaction and relationship with their respective reference groups.

Buying decision process

Consumers pass through different stage before actually buying products.
Generally, the buying decision process can be divided into five stages- problem
recognition, information search, evaluation of alternatives, purchase decision and
post purchase behavior. All consumers may not go through all of the five stages.
But in case of less frequently purchased, high priced products or while buying the
product for the first time, the customers go through all the stage decision
process. Sometimes, the change in product, price or even service might compel
the customer to go through all the five stages of decision making.







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(4.1)Customerisation: -

Today consumer is looking out for value for money. The challenge before the
marketer is to identify what would appeal and convince the consumer. Marketers
are trying to enhance the concept of value through unique delivery methods.
They have realized that product service characteristics, customers aspirations
and perceptions and the viability of competing alternatives can be used to
enhance value.

Customerisation refers to the process wherein all the employees of the firm are
requires interacting directly with the customer and end user. They can have
access to every person and function within the organization, be involved in
designing and fine tuning key products and processes, and turn every interaction
with the customers into a platform of interactive communication-so as to add
value and increase customer satisfaction.

Expectation:-

Expectation at the general level:

Here there is a general expectation (function like quality, durability, reliability,
style etc.) of the high level of quality of product or service along with some
negative external effects. For instance high service levels.

Expectation at the category level:

Here the consumers expectation is associated or build up from the particular
product category or class. For instance, blue dart express realized that the key
satisfier for its customers was on delivery of parcels to its customers desired
destinations. This facility was expected from all courier companies.


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Expectation at the brand level:

Here the consumers expectation is associated is build up based on his
knowledge and information about the expertise and reputation of the
organization. Names like cello tape, post it or Xerox are actually brands which
have become identified with the product. Names of last food chains like mc
Donalds, from the companys brand identity.

Expectations at the transaction level:

This refers to the expectation that is build up at the time of a transaction between
the customers and firm. For instance, British airways have come to be known as
worlds favorite airline because of its time. Due to this brand image, the
expectation is build up while boarding the British Airway for the first time i.e. at
the transaction level

Work towards becoming a customer favorite

Marketers of service industries have come to realize that an Indian custom today
will not be satisfied with average service especially since he knows that he is
being charged for every little odd job and thus expects best quality treatment
also. Service industry manager is involved in offering some benefit or services
beyond customers expectation.

Firm should diligently search for additional service values to persuade
prospective customer because very often it is observed that the customer doesnt
mind paying more if he gates what he wants so the name game is
customization. In other words companies go for customizing the augmented
envelopearound the standardized core especially when the customer
requirement for specialization are not unique to the main concept of product
services.

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Customer satisfaction occurs when customer expectation will match the
perception formed by them during all the stages- selection purchase and
consumption of the desire service.

Sources of customer dissatisfaction

Very often customer dissatisfaction may occur on account of discrepant
expectations and realizations,

Lack of experience with an existing product. For instance, a customer
when a buying a CD-ROM package may not know what to expect, since it
may be his first experience at buying a CD-RM.
The product under consideration may be a new product or an innovation.
For instance doing marketing over the internet.
While making the purchase decision, the service may not be physically as
in the case when packing orders over telephone for in-home tele
shopping.
The quality of service varies spontaneously. For instance, not all tailor cut
and stitch in the same style or way and also neither does the same tailor
perform the same way at different times.

Sometimes expectations are built up due to comparisons which may lead to
dissatisfaction. Very often a product is judge in comparison with some standard
creation; say the description on a leaflet or use of similar product by ones
friend/neighbors or ones own experience with similar product.





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(4.2)Customer satisfaction in service markets

In India also the range of choices has gone much beyond only competing players
in the same service category to new comparative service from different
categories so as to satisfy the same need. The customer spends more time
deciding what is good for him.

The Indian customer can no longer be taken for granted. He/she will no longer be
contented with average service. He is aware that he is being charged for every
little odd job and thus expects top quality treatment.

The service Market Exhibit Certain Unique Characteristics:

The nature of the product exhibits varying degrees of intangibility
because unlike a product, service can be considered to be a deed, a
performance or an effort.
The service may became perishable if remained unsold for long time
because unlike product it cannot be stored for later consumption.
The product and consumption go hand in hand are often inseparable.
The firm or organization which provides the services retains ownership
and consumers only have temporary access to it.

Going by the conventional wisdom, in the face of changes in the technology and
capital movement increasing competition every brand will represent product or
service.

Philip Kotler has given the definition of services. Services can be defined as any
activity or benefit that one party can offer to another that is essentially intangible
and does not result in the ownership of anything. Its production may or may not
be tied to a physical product.


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(4.3) Working towards enhancing customer satisfaction

In the exiting business environment-markets are turbulent and customer needs
fast changing, companies should opt for ways to add value for their customers by
offering products or services just the way they want it.

Customer satisfaction is a continuous process which does not begin or end with
a purchase. It covers the entire ownership experience from selection a product,
to purchase, through aftercare to repeat purchase. Clearly there are three
phases in the customer in satisfaction process, namely:

Pre sales:
During this stage the customers expectation are developed through the various
information sources like advertising, word of mouth and so on.

During sales:
When the customer is engaged in experiencing on how to deal with enquiries and
sell products

The after sales period:
This refers to the period when the customer has started using the product.

Pre-sales period
Availability of clear, useful information on:
The product or service.
Its quality aspect.
Its core benefits or advantages.
Its price.
Its availability or sales outlet.
How to obtain it.


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During Sales Period

Opportunity to inspect the products.
Provision of an attractive sales environment.
Courteous and attentive service.
Reasonable and reliable delivery.
Enhancing quality of goods or services.
Prompt redressed in case of complaint receipt.
Freedom to choose without undue sales pressure.

The After Sales Period

If required necessary support or advice be provided.
Prompt replacement or refund if necessary.

Customer Satisfaction in Hero Honda and Hero Motocorp

Hero Motocorp was leading the pack in India's fiercely competitive Two-wheeler
industry - a market estimated at $12 million in 2010. But to stay ahead of the
competition, it needed to devise a plan that would help retain customers, grow its
share of market, increase sales and support the dealer network. They put it in
gear with The Hero Motocorp Good Life Program (Customer Relationship
Program)
15
.
The plan was designed to enhance customer satisfaction and initiate higher
levels of member engagement by making them brand ambassadors to generate
referral sales and boost service visits. The program also had as its objectives,
increased revenue opportunities for dealers and an increase in customer
volumes as well as volume of transactions.


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Multiple levels of engagement were deployed including transaction-based
rewards, exclusive event invites, personal accident insurance and service
continuity bonus, transaction benefits on special occasions like birthdays,
anniversary, quarterly newsletters and interaction through a program website.
Results: The program met its objectives beyond all expectations. It built a
consolidated base of loyal customers, and produced a whole new distribution
platform for the company - one that contributes an amazing 14% of sales, purely
through referrals given by members, in addition to incremental sales for dealers.
With 380,000 members being added every month and a membership base of
over 7,200,000, this loyalty program is the largest customer relationship program
of its kind in India

Honda has been ranked highest in their respective segments. Hero Honda,
motorcycles have come out tops in the customer satisfaction ratings in the 2010
TNS Motorcycle Total Customer Satisfaction Study conducted by TNS
Automotive.

The study says that newly launched motorcycles including the Splendor NXG
and CBZ Extreme from Hero

The study was conducted by compiling responses of more than 7,000 new
motorcycle buyers as regards the performance of more than 50 models across
parameters like sales satisfaction, product quality, motorcycle performance and
design, after-sales service, brand image, and cost-of-ownership.
The index score provides a measure of satisfaction and loyalty that a given
model or brand enjoys among its customers.
Pradeep Saxena, senior VP, TNS India - Automotive said: "The continued efforts
of the industry in bringing down the cost of ownership and providing a good sales
experience have clearly borne fruit. A trend that has been continuing for the past
couple of years is the strong performance of new models. They tend to get high

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ratings on performance and design, an indicator of the growing design capability
of the Indian industry ".
Saxena adds, "The upper executive segment is a big contributor to the overall
development of the Indian two-wheeler market. The right mix of performance,
product design and cost of ownership is making this the preferred option among
a large segment of Indian motorcycle owners who plan to buy a motorcycle in
future".

The study also found that the expectation of the buyer of standard motorcycles
(entry level bikes) has gone up from the previous level, now the buyer also
expects similar attention and commitment as the buyer of higher value bikes.

Styling of the bikes in executive segment is gaining importance in overall
customer satisfaction. In transacting with the service dealer, competitive pricing
and explanation have gained importance as well as have high impact on
retention.

For the upper executive segment latest technology and style have gained
importance. Explanation of feature and benefit gained in terms of stated
importance while Salesperson knowledge impacts largely on retention.
Premium segment buyers are at the center of focus for all of the manufacturers
that have educated the customer and empowered him to buy consciously after
comparing all the options, now he expects manufacturers to give him the best
technology, his questions salesperson and look for the best financing options
available and demands quick service.

For future purchases the preference for motorcycles with high engine capacity
(150cc and above) is seen in all four regions of the country however it is almost
70% in south closely followed by west.


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(5.1) which bike do you have?


Figure no. 5.1
Interpretation:

Out of the sample size of 300 customers, 123 customers are of Hero Moto Corp
and177 are of Hero Honda are taken into consideration.
Hero Honda Company is very oldest and famous company. It is trust Worthiness
Company. That's why more customers are using this bikes.
After separating the hero Honda Companys market value is Maintain. Hero
Motocorp is a new company. So it is less trustful than hero Honda.








123
177
0
50
100
150
200
250
300
HERO HERO HONDA
User Ratio

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(5.2) which modify bike do you have?


Figure No. 5.2

Interpretation:
In Hero Moto Corp (previously Hero Honda) mostly the customers are having
splendor while the ratio of the customers using Passion, CD Delux and other
bikes are comparatively low.
Splendor [plus, pro]: It is more affordable for the middle class people. It's prices
are low and average is good. Their services and maintenance are lower than the
other company.
Passion [plus, pro]: After the splendor plus pro, passion plus pro model is more
preferable. Because of its look outs and style the customers are using this bike.
CD Deluxe: After these two bikes, CD Deluxe bike is more preferable and using
by the customers.

33%
32%
21%
14%
Bike Users
Splendor
Passion
CD Delux
Other

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(5.3) Which companys vehicle is preferable in the market?


Figure No. 5.3
Interpretation:
Hero Honda bike average is good. It is better than Hero Motocorp. It
maintenance and its space easily available in the market, so this bike is very
preferable to all customers.
Hero Honda Companys vehicle is the most preferable in the market. Out of 300
peoples 164 persons choose hero Honda bike. 136 persons choose Hero
Motocorp bike.
Because of hero Hondas bike the average and mileage this bike is more
preferable. In a long way drive hero Hondas bikes are safe in a drive. Its look out
is very fine.



164
136
0
20
40
60
80
100
120
140
160
180
Hero Honda Hero
vehicle prefreble in market

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(5.4) Did you change purchase decision after the change name?


Figure No. 5.4
Interpretation:
The market survey of Indian standard of Buero the name and bikes
advertisement is high level. Out of 300 people 177 say yes to change the
purchase decision after the change of the name of company. 123 persons are do
not want to change the purchase decision after the change the name of
company.
More people are say yes, because after change the name both the company's
are giving different facilities. Their services are different. In comparing hero
Motocorp, Hero Honda company's bike is more useful. Now a days youngster are
using stylist bike.



0
20
40
60
80
100
120
140
160
180
YES NO
177
123
purchase decision after the change of name
purchase decision after the
change of name

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(5.5) Did you regret your decision of bike purchase?


Figure No. 5.5
Interpretation:
Our experience is good for purchasing of bike. Its pick up and average is good
than other bike and maintenance free bike. So, many people use this bike and
did not regret the opinion of bike.
More than people said that they do not regret their decision of bike purchase. 184
persons are not regretting their decision of bike purchase and 116 persons are
regret their decision of bike purchase.
Because, their services are better than other company. Their facilities are better
than hero Motocorp Company. People are known that their decisions are right. so
that they are not regret in their decision of purchase of bike.



0
20
40
60
80
100
120
140
160
180
200
YES NO
116
184
Reason of Regret after purchasing the bike
Regret after purchasing the bike

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(5.6) what is Reason of your regret?


Figure No. 5.6
Interpretation:
Out of 300 users 116 persons are regret their decision of bike purchase and the
reason is the mileage of bike, then pick up of bike and then style of bike. 43%
persons are regretting the reason of mileage. 20% and 37% persons are regret
the reason of respectively pick up and style.
Customers are regret of their decision of purchase because the mileage is very
good of hero Motocorp Company. After that the pickup of the bikes are lower and
then style is a reason for their regret.





43%
20%
37%
Reason of regret
Mileage
Style
Pick up

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(5.7) which type of bike you prefer?


Figure No. 5.7
Interpretation:
Kick start bike is getting the first number because more peoples are choosing
that because sometime cell start is not working. Cell start bike getting second
number because sometime old people have troubles for kick start.
In this analysis 121 persons choose kick start type of bike. 98 persons are
chosen cell start type of bike. 81 persons choose both type of bike.
More peoples are using kick start bikes because it is easy to start a bike. And
then cell start bikes are using by the customers because it is also easy to start a
bike and it is looked like a stylist start button. After that some peoples are using
both the types of bike.




98
121
81
0
20
40
60
80
100
120
140
Cell Start Kick Start Both
Type of bike
Type of bike

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(5.8)Do you find the difference in the bike after the change name?


Figure No. 5.8
Interpretation:
More people said that they find the difference in the bike after the change the
name of company. After the change the name of company they give different
facilities to their customers.
Less people said that they do not find the difference in the bike after the change
the name of company.168 persons are said yes and 132 persons are said no.
More peoples are say yes because after separating the companies their services
and facilities are different.
Both the companies are giving different qualitative bikes. so that more peoples
are find the difference in the bike after the change of name.




0
20
40
60
80
100
120
140
160
180
YES NO
Difference in the bike after the change of
name
Difference in the bike after the
change of name

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(5.9)The company has improved after the change name?


Figure No. 5.9
Interpretation:
In this diagram 120 peoples are agree that the company has improved after the
change name. 58 persons are strongly agreed to this statement. 56 persons are
said neutral that the company has improved after the change of name. 42 and 24
persons are said respectively disagree and strongly disagree to this statement.
More peoples are agree to the company has improved after the changed the
name because after separating they change the style of their bikes and the
facilities of bikes.
Fewer people are agreed that the company has improved after the change name
because they do not have found out any difference in the services and facilities
of bikes of the companies


0
20
40
60
80
100
120
140
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Improvement of the company
Improvement of the company

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(5.10)With what do you relate the companys market value?


Figure No. 5.10
Interpretation:
Advertisement options more choosing than the other options because
advertisement is attract the peoples to purchase the product. After the
advertisement newspapers are getting second value about purchase decision.
In compare to social activity, pamphlets are more useful in deciding in purchasing
the product. 138,98,37,27 persons are getting inspiration to purchase the bike
from respectively advertisement, newspapers, pamphlets and social activity.
Companies are using more money in giving the advertisement of the bikes of the
company. Because of advertisement more peoples are attracting to purchase the
product.



46%
33%
12%
9%
Relating to the company's market value
Advertisement
News Paper
Pamphlet
Social Activity

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(5.11)Rate the following thing out of five.


Figure No. 5.11
Interpretation:
Brand value:
Out of 300, 157 persons giving first rank to brand value. 81 persons giving
second rank to brand valve. 16 persons giving third rank to brand value. 20
persons giving fourth rank to brand value. And last 26 persons giving fifth rank to
brand value.
Advertisement:
Out of 300 persons, 104 persons give the first rank to advertisement. Then 110
persons give the second rank to advertisement. 42 persons give the third rank to
advertisement. 23 and 21 persons give respectively fourth and fifth rank to
advertisement.
0
20
40
60
80
100
120
140
160
180
Brand Value Advertisement Bike model Show Room Schemes
1
2
3
4
5

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Bike model:
Out of 300 persons, 136 persons give the first rank to bike model.61 persons
give the second rank to the bike model. 67 persons give the third rank to bike
model. 24 and 12 persons give respectively fourth and fifth rank to bike model.

Show rooms:
Out of 300 persons, most of the people giving the second rank to show rooms.
Few people giving the first rank to the show rooms of the company.
32 persons give the first rank, 129 persons give second rank, 56 people give
third rank, 48 people give fourth rank and at the last 35 people give fifth rank to
show rooms.
Schemes:
Mostly 96 peoples giving the first rank to the schemes of the company. 68
persons give the second rank to schemes, 43 persons giving third rank to
schemes, 41 people give the fourth rank and 52 people give the fifth rank to
schemes.











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(5.12)Rate the companys Hero/Hero Motocorp both out of five.


Figure No. 5.12
Interpretation:

Style:
161 people give the first rank to the style of the model of bike. 76 persons give
the second rank to style. 33 persons give the third rank to the style. 10 and 20
people give respectively fourth and fifth rank to style.

Mileage:
Most of the people give the first rank to the mileage of the product. 156 people
give the first rank to the mileage, 74 people give the second rank to the mileage,
and 32 people give the third rank to the mileage. 26 and 12 people give
respectively fourth and fifth rank to the mileage.

0
20
40
60
80
100
120
140
160
180
Style
Mileage
Pickup
Comfort
Servies
1
2
3
4
5

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Page 54
Pick up:
Out of 300 people, 128 people give the first rank to the pickup of the bike. 53
people give the second rank to the pickup of bike. 72 people, 31 and 16 people
give respectively the third, fourth and fifth rank to the pickup.

Comfort:
99 people give the first rank to the comfortability. 74 people give the second rank,
37 people give the third rank to the comfort. 54 and 36 people give respectively
fourth and fifth rank to comfort.

Service:
Most of the people give the first rank to the service giving by the company. 104
people give the first rank to the service. 70 people give the second rank to the
service. Out of 300 people, 30 persons give the third rank to the service. 37 and
59 people give respectively fourth and fifth rank to the service.














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Page 55
(5.13)Which brand do you like more?


Figure No. 5.13
Interpretation:
Most of the people like Hero Honda than the Hero Motocorp. Out of 300 people,
159 people like the brand of Hero Honda. 141 people like the brand of Hero
Motocorp.
In compared to the brand of Hero Motocorp, Hero Honda is good brand. The
advantages of Hero Honda Company are better than the Hero Motocorp
company. Hero Honda is the biggest brand name in the bikes company. The
brand value of Hero Honda is higher than the Hero company.







141
159
125
130
135
140
145
150
155
160
165
HERO HERO HONDA
Brand
Brand

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Page 56
(5.14)Which company has better image in the market?


Figure No. 5.14
Interpretation:
In compare to Hero Honda, Hero Motocorps image is better in the market. 156
people give the first priority to hero Motocorp because of its image in the market.
144 people give less priority to the hero Honda.
In the market hero Motocorp image is good because most of the people are think
that the in a few time this company have getting more favorable than the Hero
Honda.






138
140
142
144
146
148
150
152
154
156
158
HERO HERO HONDA
product's image in the market
product's image in the market

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Page 57
(5.15) which company bikes do you trust more?


Figure No. 5.15
Interpretation:
Most of the people trust more on hero Honda because its services, facilities are
better than the hero Motocorp. 181 people trust on hero Honda company and
119 people trust on hero Motocorp.
Most of the peoples are trusted on Hero Honda because it is the oldest company
and their customers are more than the other companies. Hero Honda company is
the famous company than other company.





0
20
40
60
80
100
120
140
160
180
200
HERO HERO HONDA
Trustful company
Trustful company

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Page 58
(5.16) Reason for purchasing bike? (Give Priority)


Figure No. 5.16
Interpretation:
Mileage:
145 people give first priority to the mileage of the product. 95 people give
second priority to the mileage of the product and 53 people give third priority to
the mileage of the product.
Status symbol:
Most of the people give second priority to the status symbol of the bike. 116
people give the first priority to the status symbol. 153 people give the second
priority and 24 people give the third priority to the status symbol.
Influence:
Most of the people give the third priority to the influence of the product.

0
50
100
150
200
250
mileage
Status Symbol
Influence
A
x
i
s

T
i
t
l
e

Axis Title
1
2
3

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Page 59
(5.17) Will you purchase from the same company in future?


Figure No. 5.17
Interpretation:
Out of 300 people, 207 people will ready to purchase from the same company.93
persons will not ready to purchase the product from the same company in future.
Most of the peoples are ready to purchase the product from the same company
in future.
Because, it is oldest and famous company and then it is a trustworthiness
company. And day to day their facilities and services are getting better than the
other company.




0
50
100
150
200
250
YES NO
Future demand
Future demand

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Page 60
(5.18) are you satisfied with the quality of provide services?


Figure No. 5.18
Interpretation:
Out of 300 people, 208 people are satisfied with the quality of provided services.
92 people are not satisfied with the quality of provided services.
Hero Honda company's services are good than the other company. So, that the
peoples are satisfied with the quality of provided services.
Some peoples are not satisfied because they want to getting more services and
the good facilities from the company. So, that they are not satisfied with the
provided services.




0
50
100
150
200
250
300
YES NO
Satisfaction of the customers
Satisfaction of the customers

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Page 61
(5.19) Do you think that both companies are better after getting
Separated?

Figure 5.19
Interpretation:
Out of 300 people, 102 people think that both the companies are better after
getting separated.
72 people think that both the companies are not so good after the getting
separated. 126 people cannot say anything about this statement.
Most of the peoples are thinking that after getting separated both the companies
are better because after that they are taking different decision about their
products.
And some peoples are not ready to say anything about this statement because
they dont know what the market value of the companies and they do not take
any decision about the company's reputation in the market.

0
50
100
150
200
250
300
YES NO Can't Say
Better after getting separated
Better after getting separated

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Page 62
(5.20) Does Advertisement play important Role in Purchase Decision
Making to choose a vehicle of company?

Figure No. 5.20
Interpretation:
188 people think that advertisement play important role in the decision making to
choose a vehicle of company. 112 people think that advertisement does not play
important role in the decision making to choose a vehicle of company.
Because, advertisement is a good way to attract more people for purchasing the
product of the company. More peoples are watching TV. daily and because of
that peoples taking decision of purchasing the product.

In advertisement the companies are giving the chance to the bollywood star and
cricket stars. So, that the peoples are attracting more than all the other factors.



0
50
100
150
200
250
300
YES NO
Advertisement role
Advertisement role

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Conclusion

The motorcycle industry had a perceptible shift from a buyer market to the seller
market with the variety of choices. Now the customer even has a plethora of
choices to choose the best-suited requirement. All the players, weather be it
Hero Motocorp (Previously Hero Honda), or any other will have to compete on
the basis of many things like attributes, reliability and so on. There is no doubt in
the fact that Hero Moto Corp Company rules the motorcycle industry and has a
good brand name, but the company will certainly have to initiate some efforts.
The company has the highest market share in the motorcycle industry and
maintaining such a good share will pose a challenge to the company.

The company is doing very well in the business. According to me, no other
company can beat this company in the years to come because of its strong brand
name in the market. This company would be successful in the years to come as
the company has good amount of brand loyal customers. When there is talk of
bike, the first thing that comes to mind is Hero Moto Corp because of strong
brand image. In our study the main emphasis was towards the marketing mix
elements (Product, Place, Price and Promotion). The analysis are based on the
marketing mix, Buying Behavior and customer satisfaction elements. Further for
analyzing the market share of the company properly; a survey was conducted
which also forms a part of the findings.

The two-wheelers market has had a perceptible shift from a buyers market to a
sellers market with a variety of choices. Players will have to compete on various
fronts viz pricing, technology, product design, productivity, after sale service,
marketing and distribution. In the short term, market shares of individual
manufacturers are going to be sensitive to capacity, product acceptance, pricing
and competitive pressures from other manufacturers



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The segments, motorcycles have witnessed capacity additions in the last one-
year and it will continue in the upcoming period as and when Hero opens a local
subsidiary. Over this period, only the motorcycle segment is expected witness
higher demand vis--vis supply, while the scooters and mopeds supply will
outstrip demand.

As incomes grow and people feel the need to own a private means of transport,
sales of two-wheelers will rise. Penetration is expected to increase approximately
to more than 25% by 2012.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sales are expected to increase by 20%yoy as
compared to 1% growth in the scooter market and 3% by moped sales
respectively for the next two-years.

The four-stroke scooters will add new dimension to the two-wheeler segment in
the coming future. Perhaps, the moped segment will be the worst affected due to
Y2K emission norms applicable from April 2002 as not many of the present
models confirm to the norms

On surveying Hero Moto Corp globalization, it was found that the competition &
price where preferred in the bike comparison with other company. Serviceman
and businessman both like this Hero Moto Corp bike, Mileage, 4-stroke, 4-gear &
11.0 BHP
17
. Opinions are all most same. In my survey I found that there are only
05% bike exports to outside India






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Page 65

JOURNEY SO FAR

Indian companies had relied heavily on their foreign counterparts for technical
support, design of the model etc., while they provided the distribution and
branding in the Indian market. Now that the international market for motorcycles
is fairly developed and consumers are well aware, most of these foreign
manufacturers are planning to enter the market on their own. The inadequacy of
the public transportation system, the upwardly mobile middle class, which has
the disposable income and the intent to own a two-wheeler and the sheer size of
the Pakistan, Bangladesh and srilanka market is proving to be an attractive
factor to many multinational companies. India's two-wheeler industry is the
second largest market in the world after China.





















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Page 66
End Notes

Sr. No. S. F F.F. Pg. No.

1 HIPL Hero Investment pvt. Ltd 3
2 BCIPL Bahadur Chand Investment Pvt. Ltd 3
3 HCL Hero Cycle Limited 3
4 PHH Previously hero Honda 7
5 HMC Heavy Motor Cycles 15
6 FY2011 Financial Year 2011 16
7 HMCC Hero Moto Corp Corporation 16
8 HML Hero Motors Limited 18
9 HMCRF Hero Moto Corps Ride Safe 25
10 HMCC Hero Moto Corps Customer 25
11 HHSCT Hero Hero Salve Challenger Trophy 23
12 HHMG Hero Hero Master Golf 23
13 NGO Non Government Organization 24
14 CSD Canteen Store Department 24
15 MNC Multi National Companies 27
16 CRP Customer Relationship Program 43
17 BHP Break Horse Power 64

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