CHAPTER-I

INTRODUCTION

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 INTRODUCTION

"As we spread wings to expand our capabilities and explore new horizons, the
fundamental focus remains unchanged: seek out the best technology in the world and
put it at the service of our ultimate user: our customer."

Promotion is true that products are manufactured to satisfy the needs of the
consumers.. But alone is not enough. Today the responsibility of the manufacturers does not
cease with physical production whatever may be the nature of the product. The present day
marketers are consumer oriented where it is the duty of the manufacturers to know from
where, when, how and what price the products would be available. Successful marketing
consists in offering the right product of the right price of the right place (and time) with right
promotion.

In course of time, various activities came into vogue designed particularly to help easy
sale of goods. These activities commonly known as promotional Mix. The marketing
communication Mix also called as the “Promotion Mix” consists of four major tools.

1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling

Generally marketing communication is undertaken to pass on the message of a

product or sale to the ultimate consumers. Thus, there are three elements in this process.

The purpose of advertising is motivating but to sell something a product or service,

the real objective of advertising is effective communication between producers and
consumers. In other words the ultimate purpose all advertising is “Increased awareness”
list of the following specific objectives of advertising.

The process of selling is ensured by personal selling supposed by advertising and sales
promotion. Of these three methods personal selling occupies the predominant role mainly
because of the personal element involves. It may be described as a personal source
rendered to the community in connection with marketing of goods.

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 It is a marketing process with which consumers are personally persuaded to by goods and
services offered by a manufacturer. The most powerful element in the promotional mix is
salesman ship, is not something very new. Even contraries ago salesman ship was
practiced in Greece and Rome. According to Peter Drucker Cyrus Micronized was the
first man to use modern technique of selling.

Features:

1. It helps to establish a cordial and abiding relationship between the organization and its
customers.
2. It is a creative art. It creates wants a new.
3. It is a science, in the sense that “One human mind influences another human mind”.
4. Personal selling imparts knowledge and technical assistance to the consumers.
Promotion includes all those functions, which have to do with the marketing of a
product all other activities designed to increase and expand the market. But it is clearly
distinguished from advertising and personal selling, through basic aim or all the three is
one and the same viz., to increase the volume of sales.

“Sales promotion in a specific sense refers to those sales activities that supplement
both personal selling and advertising and co-ordination ate them and help to make them
effective, such as displays, shows and expositions, demonstrations and other non recurrent
selling efforts not in the ordinary routine”.

Evaluation of Sales Promotion:

Two decades ago, there was no agreement among the marketing people that there
was a separate sales promotion function. In those days, promotion was a “share-
run to gain a short run good”.

The importance of sales promotion is modern marketing has increased mainly an

account of its ability in promoting sales and preparing the ground for future
expansion. The main objective of sales promotion is to attract the prospective
buyer towards the product.

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PUBLICITY

The publicity is derived as “Any form of commercially significant news about a

product, and institution, a service, or a person published I a space or radio i.e. not paid for
by the sponsor”. In short advertisement is paid form of publicity. It is to be noted here that
though the terms ’ADVERTISING ‘AND ‘Publicity’ or differences in the field of
marketing, both are used interchangeably.

The media are broadly classified into direct indirect. Direct method of advertising
refers to such methods used by the advertiser with which he could establish a direct
contact with the prospects. Most of the media are indirect in nature EX: Free Publicity,
cinema, etc.

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\Need And Importance the Study:

The increasing competition in business is the reason to pay much more

attention to satisfying customers. It may help the market to notice role of customer
satisfaction in the overall context of product of service development and management.

Customers do not buy services, they buy satisfaction. Hence marketers must
be clear about the satisfaction the customer is seeking and check out whether the
customers are getting the actual satisfaction. This study helps the marketers to take
necessary steps to gain the competitive advantage over the competitors.

The study helps to predict further behavior intentions of the customers such as
intention to re-purchase, intention to increase the usage, intention to recommend the
product and Service to others. Today the customers have wide variety of motorcycles
to chose.

If the satisfaction level of the customer goes down he may switch over to other
brand. Ultimately the company loses its actual customers. This study helps the
marketer to take necessary steps to overcome this problem and retain in the increase
of customer loyalty.

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Objectives of the Study:

 To study the promotional activities offered by HERO MOTO CORP PVT

LTD.

 To identify the impact of sales in the market by using promotional strategies

of HERO MOTO CORP PVT LTD.

 To study the influence of schemes offered by firm on sales.

 To study the customer’s awareness towards the after sale services offered to
him or her.

 To study the effect of advertisement on the customers to promote the product.

 To study the customer satisfaction with usage of their Bikes.

 To study the information resources that the customer using before purchasing
the Bikes.

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Scope of the Study:

The area of study is considered to be in two districts. Those are Hyderabad and Ranga Reddy
districts.

In the present study an attempt has been made to know the actual
implementation of Communication Process as management techniques in general and some
other aspects such as awareness of the workers, effectiveness of the performance appraisal
system in particular.

Human resource projections are valid on appraisals. By improving job skills,

the employees have lot of scope for development and prepare themselves for higher
responsibilities.

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RESEARCH METHODOLOGY AND DATA BASE
a) Source of data:
1) Primary Data:
The primary data is collected through questionnaires from the customers.
2) Secondary Data:
The secondary data is collected from the books, journals and internet.
Data collected method:
The data is collected through close ended questionnaire.
b) Sample size:
1. The sample size of the survey (N) is 100.
2. Samples are collected customers of showroom.
3. The age limit of the customers is in between 20-55.
4. The customers will be randomly selected.
c) Tools & Techniques: For analyzing the data statistical tables, percentages, and
bar-diagrams will be used.
d) Further scope of study; The topic of promotional activities is vast there is further
scope of study for eg; Advertising, sales promotion etc.
e) Kind of research: The research study will be bikeried out in qualitative and
quantitative research approaches.
The research has to be done in very efficient way; the frame work for
collecting data is called research design.
The statistical involves the study of a few factors in large number of cased.
The contents of research design are
i) Data collected method.
ii) Research instrument.
f) Survey approach: The survey will be conducted through close ended
questionnaire. This questionnaire will contain the multiple choice questions; each
question will be given options. The collection of data in survey follows two types
they are
i) Primary data (first hand data).
ii) Secondary data (used data).

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 Period Of The Study:

Since so many years HERO MOTO CORP PVT LTD Hyderabad has been following the
same procedure of Communication Process for their executives and employees and for the
study of my project last one-year data has collected on Promotional Activates..

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Limitations to the study:

 Primary data analysis only depended on the respondents.

 Process of study/survey is limited only to some customers.
 Survey will be conducted for the period of 45 days only.

 Due to constraint of time only city is selected and so it cannot claim to be a

comprehensive study of the population.

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 CHAPTER-II

INDUSTRY PROFILE

&

COMPANY PROFILE

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Introduction

The automobile industry is one of India’s most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The
auto sector is one of the biggest job creators, both directly and indirectly. It is estimated that
every job created in an auto company leads to three to five indirect ancillary jobs.

India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China
and Japan. According to a report by Standard Chartered Bank, India is likely to overtake
Thailand in global auto-export market share by the year 2020.

The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the government’s backing, and
trends in the international scenario such as the decline in prices of natural rubber, the Indian
automobile industry is slated to witness some major growth.

Market size

The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 – August 2015 was recorded at US$ 10,119.68 million, as per
data by Department of Industrial Policy and Promotion (DIPP).

Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
137,873 passenger bikes were sold in July 2015 compared to 131,257 units during the
corresponding month of 2014. Among the auto makers, Maruti Suzuki, Hyundai Motor India
and Honda Bikes India emerged the top three gainers with sales growth of 15.45 per cent, 12
per cent and 11 per cent, respectively.

The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of
increased demands from the urban market. Total sales across different vehicle segments grew
12 per cent year on year (y-o-y) to 1,586,123 units.

Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of
the total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for

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scooters, which has far outstripped supply has prompted Honda to set up its first dedicated
scooter plant in Ahmedabad.

Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR)
of 8–9 per cent in the next five years making India a high-potential market for many
international brands.

Investments

To match production with demand, many auto makers have started to invest heavily in
various segments in the industry in the last few months. Some of the major investments and
developments in the automobile sector in India are as follows:

 Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million) in India,
by way of capital expenditure (capex) and investment during FY15. The company is
required to manage Rs 6,000 crore (US$ 980.56 million) of assets in seven locations
across the world, for which maintenance capex is needed.

 Honda Motors plans to set up the world's largest scooter plant in Gujarat to roll out
1.2 million units annually and achieve leadership position in the Indian two-wheeler
market. The company plans to spend around Rs 1,100 crore (US$ 179.76 million) on
the new plant in Ahmedabad, and expand its range with a few more offerings.

 Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor India
(YMI) will take bikee of its India operations. “The restructuring is part of Yamaha’s
mid-term plan aimed at improving organisational efficiency,” as per Mr Hiroyuki
Suzuki, Chief Executive and Managing Director. YMI would be responsible for
corporate planning and strategy, business planning and business expansion, quality
control, and regional control of Yamaha India Business.

 HERO Motors plans to use the 'hub-and-spoke' model in which India will be the key
manufacturing base while it will have mini-hubs in overseas markets. The company
also plans to set up mini hubs in potential markets like Africa, Middle-East and South
East Asia.

 Hero Cycles through its unit OPM Global has acquired a majority stake in German
bicycle company Mitteldeutsche Fahrradwerke AG (MIFA) for €15 million (US$

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 19.11 million). The company plans to invest an additional €4 million (US$ 5.09
million) as capital expenses in restructuring the acquired company.

Government Initiatives

The Government of India encourages foreign investment in the automobile sector and allows
100 per cent FDI under the automatic route. To boost manufacturing, the government had
lowered excise duty on small bikes, motorcycles, scooters and commercial vehicles to eight
per cent from 12 per cent, on sports utility vehicles to 24 per cent from 30 per cent, on mid-
segment bikes to 20 per cent from 24 per cent and on large-segment bikes to 24 per cent from
27 per cent.

The government’s decision to resolve VAT disputes has also resulted in the top Indian auto
makers namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and HERO Motors
announcing an investment of around Rs 11,500 crore (US$ 1.87 billion) in Maharashtra.

The Automobile Mission Plan for the period 2006–2016, designed by the government is
aimed at accelerating and sustaining growth in this sector. Also, the well-established
Regulatory Framework under the Ministry of Shipping, Road Transport and Highways, plays
a part in providing a boost to this sector.

The Government of India-appointed SIAM and Automotive Components Manufacturers

Association (ACMA) are responsible in working for the development of the Indian
automobile industry.

Road Ahead

The future of the auto industry depends on the positive sentiments and the demand for
vehicles in the market. With the festival season coming up, the Indian auto sector will see a
rise in demand which is expected to bring in major growth. An auto dealer survey by firm
UBS suggested that the Indian auto industry, riding on trends like the upcoming festival
season and decline in fuel price, will observe a 12 per cent y-o-y growth in FY15.

Also, keeping up with international trends, there is expected to be a surge in the number of
hybrid vehicles in the Indian auto sector in the years to come.

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The growth story for the Indian automobile industry in 2015 rode on the two-wheeler
segment and not on passenger bikes or commercial vehicles, as high interest rates and a
stuttering manufacturing industry kept a check on demand.

The year also saw Competition Commission of India (CCI) levying a penalty of Rs.2,544.65
crore ($415) on 14 bike makers for their restrictive trade practices by preventing independent
repairers coming into the market. Some of the leading bike makers also had to recall some
models over defective components.

When other segments like passenger bikes and commercial vehicles logged negative growth,
the two-wheeler makers registered around 13 percent growth between January and October.
Riding on the two-wheeler sector's growth, the automotive industry grew 9.8 percent by
volume year-on-year (YoY) between January and October.

"The two-wheeler segment is the only one that has clocked positive growth at 12.9 percent
YoY (year-on-year) to reach sales of nearly 13.5 million units by October. This can be
attributed to the low cost of two wheelers

in India," Vijay Kakade, vice president for automotive and transportation practice at Frost &
Sullivan, told IANS.
He said the light commercial vehicle (LCV) segment has been the worst hit, with sales

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reducing to approximately 330,000 units -- an 18.9 percent YoY fall over 2014.

"The passenger bike, medium and heavy commercial vehicle segments contracted by 0.8 and
6.5 percent respectively during the period, compared to 2014. The reduction in sales can be
attributed to the slowdown and the high interest rates set by the RBI (Reserve Bank of India)
reducing the availability of finance options to the public," Kakade added.

"These segments have shown positive signs over the past few months, which is expected to
lead to growth in the next year."

"The year 2015 has been a year of stagnation, which is a positive sign as the decline has
stopped. The industry has shown signs of growth, albeit slower than expected, over the past
few months," Kakade remarked.
P. Balendran, vice president, General Motors India, had similar views to share with IANS:
"Of late, we have seen some movements in new entries driven by novelty factors and some
select manufacturers have been getting the benefits too."
He said the market has not shown any movement forward, despite the excise duty reduction,
while the customer sentiment has not picked up due to sticky interest rates, which remain at
high levels.
"Although fuel prices have started coming down significantly, the enquiry levels at
showrooms have come down and conversions are not taking place at all. The sales of diesel
vehicles are also tapering off because of the narrowing price gap vis-a-vis petrol," Balendran
added.
Expecting the government to continue with a lower excise duty regime for small/mid-
sized/big bikes and sports utility vehicles (SUV) till March 2015, Balendran said the rates
should be continued till the Goods and Services Tax ( GST) is introduced -- aiding the
turnaround of the auto sector.

Terming 2015 a mixed bag for the automobile industry, Sumit Sawhney, chief executive and
managing director of Renault India, told that while there has been a sea change in the
consumer sentiment with a gradually improving economic climate in the country, the
optimism has still to translate into sustained sales growth.

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"The industry is looking forward to the budget for pro-business policies to reignite the
automobile industry in India."

Highlights of India's automobile industry 2015:

* Overall growth was 9.8 percent by volume year-on-year (YoY) between January and
October.
* Two-wheeler sector grew 12.9 percemt
* Passenger bike, medium and heavy commercial vehicle segments contracted by 0.8 and 6.5
till October
* LCV segment worst hit, with sales falling 18.9 percent YoY fall over 2014 till October
* Excise duty reduction on automobiles
* Competition Commission of India (CCI) fines 14 bike-makers Rs.2,544.65 crore for
restrictive trade practices.

Auto manufacturers have been trying to cope with economical rough patch in last two years.
Trying to boost sales and implementing cost effective schemes just wasn’t enough. They also
had to cut many of their employees loose to stay somewhat balanced, in some cases. On a
fashionable note, senior employees were asked to take voluntary retirement (not sure what
‘voluntary’ is doing in that sentence).

HERO Motors apart from giving customers attractive offers, gave 600 of their employees
early retirement offers, last month. Ashok Leyland too offered 500 of their employees with
irresistible retirement schemes, last year (pun intended).

Sales of Bikes, SUVs, Vans, pick-ups, and entire commercial vehicle segment went south,
with passenger vehicle market encountering first decline in the decade. But what saved the
overall scenario was the two-wheeler market. It took 7.31% hike with motorcycle sales going
3.91% up and scooter sales riding 23% north. Export sales figures also contributed to
somewhat saving the year with rise of 7.21%.

The downtrend left auto manufacturers with piled up inventory and stagnation. The interim
budget announced in February, gave a minor boost as all vehicles prices were reduced

16
marginally, but it hasn’t exactly helped boost sales yet. Automakers are expecting aid from
the government’s new budget by way of further tax cuts.

Sales figures of March 2015 shows 12.83% overall growth also by means of increased two-
wheeler sales. Commercial Vehicles have further dipped compared to March 2014 and
passenger bikes stagnating below the graph. However, overall production has increased by
9.95% comparing March figures of both years, suggesting auto makers’ confidence in
ongoing fiscal to make better.

Launch of new A segment compact bikes by various auto majors seems to be helpful in this
economy, for customers as well as value chain entities. Maruti Suzuki finished top on podium
with 42% share in overall bike sales, followed by Hyundai with 15% share.

Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over in the fiscal
2014-15, with boost in manufacturing sector, new investment and fresh capacities in the
industry. Vikram Kirloskar, president of SIAM says, “Whichever government comes in…I
am looking for stability in excise duty and some reduction in taxes. We are an over-taxed
industry.”

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18
COMPANY PROFILE

19
CORPORATE PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer
of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.

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

Mission

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

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

Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located
in the state of Haryana in northern India. The third and the latest manufacturing plant is based
at Haridwar, in the hill state of Uttrakhand.

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Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. Today, Hero Honda continues to be technology
pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian
motorcycles, with the launch of the Glamour FI in June 2006.

Distribution
The Company's growth in the two wheeler market in India is the result of an intrinsic ability
to increase reach in new geographies and growth markets. Hero MotoCorp’s extensive sales
and service network now spans over to 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.

Brand

The new Hero is rising and is poised to shine on the global arena. Company's new identity
"Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and
technology and creating global footprint. Building and promoting new brand identity will be
central to all its initiatives, utilizing every opportunity and leveraging its strong presence
across sports, entertainment and ground-level activation

HERO'S MANDATE

Hero is a world leader because of its excellent manpower, proven management, extensive
dealer network, efficient supply chain and world-class products with cutting edge technology
from Company, Japan. The teamwork and commitment are manifested in the highest level of
customer satisfaction, and this goes a long way towards reinforcing its leadership status

BOARD OF DIRECTORS

No. Name of the Directors Designation

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

2 Mr. Pawan Munjal Managing Director & C.E.O.

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3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. M. Damodaran Non-executive & Independent

Director

15. Mr. Ravi Nath Non-executive & Independent

Director

16. Dr. Anand C. Burman Non-executive & Independent

Director

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BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $
3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the
Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government.

Mr. Brijmohan Lall Munjal is currently on the board of the following companies:

No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA

Year Event

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

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

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1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing
Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder
Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

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 Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer
Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar year in a row
(2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced

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

15 million production milestone achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched

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 20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched

2009 Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
Silver jubilee celebrations

2010 New model Splendor Pro launched

Launch of new Super Splendor and New Hunk

2011

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year

2012 Migration of all products to Brand Hero.

Launch of Impulse, Maestro and Ignitor.

Debut in the AMA Superbike Racing in the US.

Strategic partnership with Erik Buell Racing (EBR) of USA.

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2013 Neemrana Plant Foundation Stone laid.

Global Parts Centre Foundation Stone laid.

50 Million cumulative 2 wheelers production.

New plant establishment in Gujarat

2014
New R&D team for Indian roads

New lanch of XTREME.

PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

2014  Green Pioneer leader in india-2014

 Green Supply Chain Management Program-2014.

 Green Pioneer Award - 2013

 "Business Leader of the Year" Award by Hon'ble President of India, Shri. Pranab
Mukherjee, at the AlMA Managing India Awards 2013 on April 11, 2013
2013 (Conferred on Mr. Pawan Munjal)
 "Business Leader of the Year" Award in the Auto (Two Wheelers) category by
Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia, at
the NDTV Business Leadership Awards 2013 (Conferred on Mr. Pawan Munjal)
 CFO of the year Award (Conferred on Mr. Ravi Sud)

Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business

Leadership Awards 2012 (Conferred upon Mr. Pawan Munjal)

Best value for Money Bike Maker and Best Advertising in Two Wheelers Category at
2012 the Auto India Best Brand Awards 2012

27
 Digital Advertiser of the year at the Indian Digital Media Awards (IDMA) 2012

Three awards (Launch Event of the year, Rural Engagement Progamme and Live
Patron Award for Marketing Excellence) at the WOW Awards organised by EventFAQs

Two-wheeler Manufacturer of the Year award by Bike India magazine.

Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Bike
and Bike Awards.

- CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new

corporate entity" by CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz
Consumer Awards
- Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for
Hero GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion
Marketing Award of Asia Order of Merit for Hero GoodLife
2011
- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
Trusted Brand" 2011 survey

Company of the Year awarded by Economic Times Awards for Corporate Excellence
2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Bike & Bike Awards 2010 -

 Two-wheeler Manufacturer of the Year

2010  CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Bike & Bike of the Year Awards 2009

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

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

28
 Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV
Profit Business Leadership Award 2008"

TopGear Design Awards 2008 - Hunk Bike of the Year Award

NDTV Profit Bike India & Bike India Awards - NDTV “Viewers’ Choice Award” to
Hunk in Bike category

IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards -
“Customer and Brand Loyalty Award” in Automobile (two-wheeler) sector

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

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

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

 No.1 executive motorcycle Splendor NXG

 No.1 standard motorcycle CD Deluxe

 No. premium motorcycle CBZ Xtreme

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

 Overall "Bike of the Year" - CBZ X-treme

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

 "Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.
"Bike of the Year" - CBZ X-treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.

29
 CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards
2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most reputed
companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards
2006:

 Splendor Plus (Executive)

 CD Deluxe (Entry)

 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006.
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company).
Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006.
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04 for
two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion
Council.

30
CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. The Company believes it has managed to bring an economically
and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-
Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education
facilities for both adults and children-now nurtures a vibrant, educated and healthy
community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National Highway
(NH -8).
 Renovating primary school buildings and providing hygienic water and toilet
facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-logging.
 Promoting non-conventional sources of energy by providing a 50 per cent subsidy on
biogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students
from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-
educational school with over 1200 students and 61 teachers. The school has a spacious
playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room,
a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey and
football grounds are used by the local villagers. In the near future, sports academies are
planned for volley ball and basket ball, in collaboration with National Sports Authority of
India.

31
Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational
Training Centre. So far 26 batches comprising of nearly 625 women have been trained in
tailoring, embroidery and knitting. The Company has helped women trained at this centre to
set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of
the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults.
Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults
by getting village heads and other prominent villagers to motivate illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.

Rural Health Bikee

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health
bikee services to the local community. Free health bikee and medical camps are now a
regular feature in the Hero Group's community outreach program

KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to provide a high-quality
service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise
respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the economic
concerns and the environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve mankind.

32
"We must do something for the community from whose land we generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

Environment Policy

We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.
To achieve this we commit ourselves to:

 Integrate environmental attributes and cleaner production in all our business processes
and practices with specific consideration to substitution of hazardous chemicals,
where viable and strengthen the greening of supply chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
 Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

 Innovation in products, processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may
be affected by its operations. We believe that the safe work practices lead to better business
33
performance, motivated workforce and higher productivity.
We shall create a safety culture in the organization by:

 Integrating safety and health matters in all our activities.

 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and contractors.
 Continuous improvements in safety performance through precautions besides
participation and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS PVT
LTD. is established on 21st march 2003. The business is running by only one man. The owner
name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank
like ICICI, HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings and
field staff. They are upgrading sales by introducing the schemes, group bookings,
institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are allotted

for field staff, 5 members are recruited for sales for persons, 5 persons are placed for
evaluating for spare parts, 5 members are allotted for managerial accounts and another 3
persons for cash transaction and other members are allotted for remaining work.

34
Customer relationship:

They entertain the showroom providing a customer’s huge having pool

game, internet facility and television with home there system. They provide bile maintenance
programs on every week.

According to other dealers PHOENIX motors in first in sales and best in service. They treat
customer, is the very important person at PHOENIX motors customer satisfaction is their
motto, why because, they will satisfied customer is the best advertisement. They provide
better value for the customers and as well as employees also. At PHOENIX motors the
customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 28 vehicles per day. PHOENIX motors PVT L.T.D is
the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader through
quality dealer). At PHOENIX motor they gave the quality service to the customers why
because ‘the cost is long forgotten but the quality is remembered for ever”. They treat quality
has a...

Q Quest for excellence

U Understanding customer’s needs

A Action to achieve customer’s appreciation.

L Leadership determined to be a leader

I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly
handled by the respective original manufactures (OEM’s) except AMCO for batteries and
Dunlop and Falcon tires and Tubes. In case of any defect in proprietary items, other than the
above two mentioned OEM’S the dealers must approach the Brach office dealer of the

35
respective manufacture. For AMCO batteries and Dunlop and falcon tires, tubes claims will
be accepted at our authorized dealerships per the mutually agreed terms and conditions
between HERO and of these two OEM’s in case the claim is not accepted for invalid reasons.
Then the claim along with the refusal note form the OEM can be sent to the warranty section
at gorgon plan after due to recommendation of the area service engineer. If any other six
services or subsequent paid services is not availed as per the recommended schedule given in
the owner’s manual. If HERO recommended engine oil is not used. To normal wear & tear
components like bulbs, electric wiring, filters, spark plug, clutch plates, braded shoes,
fasteners, shim washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic
components, chain$ sprockets and in case of wheel rim misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones
recommended by HERO. If the motor has been used in any competitive events like tracking
races or rallies. If there is any damage to the painted surface due to industrial pollution or
other extraneous factors. For clams made for any consequential damage due to any previous
malfunction. For normal phenomenon like noise, vibration, oil seepage, which do not affect
the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the
phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st January
2006.they motivated on the consumers to participated in this camp and also provide
certificate for the customers

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

36
37
38
CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool game,
Internet facility and television with home theatre system. They provide bike maintenance
programs on every week. According to other dealers PHOENIX motors in first in sales and
best in service. They treat customer, is the very important person at PHOENIX motors
customer satisfaction is their motto, why because, the well satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees also. At
PHONIX motors the customer is the boss.

39
SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on the
customers to participated in this camp and also provide Certificate for the customers.

40
 CHAPTER-III
REVIEW OF LITERATURE

41
The increasing competition in business to pay much more attention to satisfying customers. It
may help the marketer to notice role of customer satisfaction in the overall context of product
of service development and management.

Customers do not buy services, they bys satisfaction. Hence marketers must be clear about
the satisfaction the customer is seeking and check out whether the customer are getting the
actual satisfaction.

This study helps the marketers to take necessary steps to gain the competitive advantage over
the competitors.

The study helps to predict further behavior intentions of the customers such as intention to
Re-purchase, intention to increase the usage, intention to recommend the product and service
to others. Today the customers have wide variety of motorcycles to chose. If the satisfaction
level of the customer goes down he may switch over to other brand. Ultimately the company
loses its actual customers. This study helps the marketer to take necessary steps to overcome
this problem and retain its actual customers.

1. Can be major source of revenue, although it often receives too little management
attention.
2. Is essential for achieving customer satisfaction and good long-term relationship-as
identified by a number of researches.
3. Can provide a competitive advantage.
4. Play a role in increasing the success rate of new products introduced.
5. Needs to be fully evaluated during new product development, as good product
design can make customer support more efficient and cost-effective. Increased
competition within many industries has led to increased attention on customer
service.

Various studies indicate that upset customers may have big effect on sales of company.
Therefore all dealers try to put all their attention to keep their customers satisfied and fulfill
their needs and wants as much as possible. One of the strong tools which help all companies
in this matter is providing best after-sales service.

42
Market: The set of all actual and potential buyers of a product of a service.
Marketing:
In today’s competitive world any organization to run successfully three factors plays
an important role are
1. Finance.
2. Human resources.
3. Marketing.
Along with the above mentioned the other three factors which plays an important role
to achieve the organizational goals and objectives in the competitive market they are
1. Innovative technology.
2. Quality.
3. Price.

Because of globalization, privatization and liberalization the number of

competitors are increasing at a constant rate as a result of which consumers are
preferring products which are of high quality, technology and at a reasonable price.
Though the company is producing high quality products at a reasonable price to
be success in the competitive market the company should take promotional activities
and marketing tools and techniques to achieve its mission and vision.
Marketing is not just telling and selling but in the new sense satisfying
customer needs marketing is a comprehensive term and it includes all resources and a
set of activities necessary to direct and facilitate and flow of goods and services from
producer to consumer in the process of distribution.

Marketing definition.
“Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating and exchanging products and
value with others”.

43
ELEMENTS OF MODERN MARKETING SYSTEM:

Company
(Marketer)
MarketingInte End users
Suppliers
rmediaries

Competitor
s

“The art and science of choosing target customers and building profitable
relationships with them.”

Delivering and communicating superior customer value. Thus marketing

management involves managing customer relationships.
THE MARKETING CONCEPT:
The marketing concept holds that achieving organizational goals depends on
knowing the needs and wants of target markets and delivering the desired satisfactions
better than competitors do. Under the marketing concept, customer focus and valve
are the paths to sales and profits.

Market Customer Integrated Profits through

Needs Marketing Customer satisfaction

44
DEVELOPING THE MARKETING MIX:

Marketing Mix:

The set of controllable tactical marketing tools that he firm blends to provide
the response it wants in the target market. The marketing mix consists of everything
the firm can do to influence the demand for its product. It can be collected into four
groups of variables known as “FORUP’S”.

1) PRODUCT

2) PRICE

3) PLACE

4) PROMOTION

Product:

Product means the goods-and –services combination the company offers to the target
market.

Price:

Price is the amount of money customers have to pay to obtain product.

Place:

Place includes company activities that make the product available to a target
consumers.

Promotion:

Promotion means the activities taken by the company to communicate the merits of
the product and promote its product to the target market.

45
ACTIVITIES UNDER THE 4P ARE OF THE MARKETING MIX:

1) Product:
Managing the product includes planning and developing the right products and
services to be marketed by the company policy strategy guidelines are needed for
changing the existing products and adding new ones.

A product activity includes policies and procedures relating to:

a. Product variety, quality, features, design, brand name, packaging, size, services,
warranties and returns.
b. Markets to sell-whom, where and in what quantity.
c. New product policy, R&D programs.

2) Pricing activities:
Include policies and procedures relating to
1. List prices.
2. Discounts.
3. Allowances.
4. Payment period.
5. Credit terms.

Generally markets consider the following factors while seeking price: target customers, cost,
competition, social responsibility.

3) Promotional activities:

Includes policies and procedures relating to.

 Advertising: media mix, budget, allocation and programmer.
 Personal setting: objectives, quality of sales force, cost level, level of motivation.
 Promotion: special setting plans/ devices directed at or through the trade forms of
these devices are consumer promotions and trade opinions.
 Publicity and public relations.

4) Place/distribution activities: Basically place of distribution activities are to transfer

ownership to consumer and to place products, services, idea at the right time and
place. Distribution is made up of two components

46
 1) Physical distribution and
2) Channels of distribution
i) Physical distribution: Activities involved in moving products or services from
producer to consumer are.
 Transportation, warehousing and storage, order processing and inventory
control.
ii) Channels of distribution;: These are the routes taken by good from producer-
consumer it includes.
 Channel design
 Location of outlets
 Channel remuneration
 Dealer-principal relations

An effective marketing program blends all of the marketing-mix elements into a

coordinated program designed to achieve company’s marketing objectives by delivering
value to consumer. The marketing mix constitutes the company’s tactical tool kit for
establishing string positioning in target markets. The four P’s concept taken the seller’s view
of the market, not the buyer’s view. From the users view point the four P’s might be better
described as the four C’s.

FOUR P’S FOUR C’S

Product customer solution

Price customer cost

Place convenience

Promotion communication

47
 Thus marketers see themselves as selling products; customers see themselves as
buying value of solutions to their value of solutions to their problems. The customer is
interested in more than just the price’ they are interested in the total cost of obtaining, using
and disposing of a product. Customers want the product and service to be as conveniently
available as possible, marketers think about the four C’s first and build the four P’s platform.

COMOMIC ENVIROMENT:

Markets require buying power as well as people. The economic environment consists
of factors that affect consumer purchasing power and spending patterns.

The factors effecting consumer behavior are:

1) Cultural factors

2) Social factors

3) Personal factors

4) Psychological factors

48
1) Cultural factors:

i) Cultural is the set of basic values, perceptions wants and behavior learned by a
member of society from family and other important institutions.

ii) Sub-culture a group of people with shared value sustains based on common
life experiences sub cultures includes nationalities, religion.

iii) Social classes relatively permanent and ordered divisions in a society whose
members share similar values, interests and behaviors. Social class is
measured by a combination of factors like income, occupation, education,
wealth etc. types are upper class, upper middle, lower class, working class etc.

2) Social factors:

i) Groups: Two or more people who interact to accomplish individual of mutual

goods. The broad types are groups, reference groups, opinion leaders in the
reference group are persons who because of special skills, knowledge,
personality, exerts influence of others.

ii) Family: marketers are interested in the roles and influence of the husband,
wife and children on the purchase of different products and services. Five
fingers of the hand relating to five members of family influencing the decision
of purchase.

iii) Roles and Status: A person role differs from group to group. A role consists of
the activities people are expected to perform according to the persons around
them. Each role bikeries a status reflecting the general esteem given to it by
society. People often choose products that show their status in the society.

3) Personal factors:

i) Age and life cycle stage: tastes in food, clothes, furniture etc bikee often age
related. Buying is also shaped by the stage of family life cycle the stages
through which families might pass as they mature over time.

ii) Occupation; A person’s occupation affects the good and services bought. Blue
collar workers tend to buy more rugged clothes where as white collar workers

49
 buy more suits. A company cans ever specialty in making products needed by
a given occupation.

iii) Economic situation: Marketers of income sensitive goods, look at the

consumer personal income savings and interest rates. If the economic
indicators point to a recession, marketers can take steps to redesign reposition
and re-price their products closely.

iv) Life style: Life style is a person’s pattern of living understanding these forces
involves measuring consumer’s activities, interests and opinions.

v) Personality and self concept: It refers to the unique psychological

characteristics that lead to relatively consistent and tasting response to one’s
own environment, Personality is usually described in terms of traits such as
self-confidence, dominance, sociability, autonomy, defensiveness, adaptability
and aggressiveness.

4) Psychological factors:

i) Motivation: A motive is a need that is sufficient pressing to direct the person

to seek satisfaction. Psychological have developed theories of human
motivation for consumer analysis and marketing.

ii) Perceptions: It is the process by which people select, organize, and intercept
information to form a meaningful picture of the world. Two people with same
motivation and is the same situation may act quite differently because they
perceive the situation differently.

iii) Learning: When people act, they learn. Learning describes charesIn an
individual behavior arising from experience. Learning theorists say that most
human behavior is learned learning occurs through the interplay of drives,
stimuli, uses, responses and reinforcement.

Beliefs and Attitudes: Through doing and learning people acquire beliefs nd
attitude. These in turn influence their buying behavior. A belief is a descriptive
thought that a person has about something; as attitude describes a person’s
relatively consistent evaluations, feelings and tendencies toward an object of
India.

50
There are four main aspects of a promotional mix. These are:

 Advertising - Any paid presentation and promotion of ideas, goods, or services by an

identified sponsor. Examples: Print ads, radio, television, billboard, direct mail,
brochures and catalogs, signs, in-store displays, posters, motion pictures, Web pages,
banner ads, and emails.
 Personal Selling - A process of helping and persuading one or more prospects to
purchase a good or service or to act on any idea through the use of an oral
presentation. Examples: Sales presentations, sales meetings, sales training and
incentive programs for intermediary salespeople, samples, and telemarketing. Can be
face-to-face or via telephone.

51
  Sales promotion - Media and non-media marketing communication are employed for
a pre-determined, limited time to increase consumer demand, stimulate market
demand or improve product availability. Examples: Coupons, sweepstakes, contests,
product samples, rebates, tie-ins, self-liquidating premiums, trade shows, trade-ins,
and exhibitions.
 Public relations - Paid intimate stimulation of supply for a product, service, or
business unit by planting significant news about it or a favorable presentation of it in
the media. Examples: Newspaper and magazine articles/reports, TVs and radio
presentations, charitable contributions, speeches, issue advertising, and seminars.
 Corporate image - The Image of an organization is a crucial point in marketing. If the
reputation of a company is bad, consumers are not less willing to buy a product from
this company as they would have been, if the company had a good image.
 Direct Marketing is often listed as a the fifth part of the marketing mix
 Exhibitions - are try-outs. You make your product, and let potential buyers try the
product, this way; you know directly what people see in your product. The downside,
your competitor can see exactly what you are doing.

Customer Satisfaction:

“The extent to which products perceived performance matches a buyer’s expectation”.

Consumer satisfaction depends on the products perceived performance, relative to a

buyer’s expectations. If the products performance fall’s short of expectations, the customer is
dissatisfied.

If performance exceeds expectations, the customer is highly satisfies of delighted.

Satisfied customers repeat purchases and tell others about their good experiences with the
product. The key is to match customer expectations with company performance.

The customer centered firm seeks to deliver high customer satisfaction relative to
competitors. A company can always increase customer satisfaction by lowering its price of
increasing its services. But this may result in lower profits. The purpose of marketing is to
generate customer value profitably.

52
Customer loyalty:

Highly satisfied customers produce several benefits for the company. Satisfied
customers are lesser price sensitive. They talk favorably to others, about the company and its
products and remain for longer period. Customer delight created an emotional relationship
with a product of service. This crated high customer loyalty.

53
 CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION

54
 QUESTIONNAIRE AND INTERPRETATION WITH GRAPHS:

1) Income per month

a) Less than 6000K b) 6001K -10000K

c) 10001K-15000K d) Above 15000K

Less than 6000K 6001K -10000K 10001K-15000K Above 15000K

5 24 42 29

5%

29%
24% Less than 6000K
6001K -10000K
10001K-15000K
Above 15000K

42%

Interpretation:

By the above pie chart we know that the customers have an income per month , 10,000 to
20,000 is 42%, above 15000 are 29%, between 6,000 and 10,000 are 24% and less than 6000
are 5%.

55
2) Do you have BIKE?

a) YES b) NO

YES NO

97 3

YES
NO

Interpretation:

By the above pie-chart we know that 97% of the respondents are having their BIKE and 3%
are living without BIKE. So the study is concentrated on both the type of respondents.

56
3. Did you hear about HERO MOTO CRP?

a) YES b) NO

YES NO

95 5

5%

YES
NO

95%

Interpretation:

By this pie-chart we can understand most of the respondents know about the HERO
MOTO CRP.

57
4. Are you using HYUNDAI BIKE?

a) YES b) NO

YES NO

67 33

33%

YES
NO

67%

Interpretation:

By the above pie –chart we know that 67% respondents are using HYUNDAI
BIKE and rest of the 33% respondents are not using HYUNDAI BIKE.

So we have to concentrate more on those 33% as well as 67% respondents.

58
5 YES, What is your rating factor for BIKE which you will give

RATING FACTOR GOOD FAIR BAD

Quality
62 4 1
Price
46 20 1
Longevity
55 12 0
Others (_)

Rating factor for TATACars

70

60

50

40 QUALITY

30 PRICE
LONGEVITY
20

10

0
GOOD FAIR BAD

Interpretation:

By the above bar-chart we know that out of 100 respondents 67% have used the HYUNDAI.
Out of 67% respondents 62% people rated good quality, 4% respondent’s rated fair quality
and remaining 1% respondents rated bad quality.

Out of 67% respondents 46% respondents rated good price, 20% respondents rated fair
quality and remaining 1% respondents rated bad price.Out of 67% respondents’
55%respondents rated good longevity and 12% respondent’s rated fair longevity.

59
6. If YES, how do you heard aboutHYUNDAI Products

a) Electronic media b) Print media

c) Sales person d) others ( )

Electronic media Print media Sales person others

17 51 16 11

11%
18%

ELECTRONICMEDIA
17%
PRINTMEDIA
SALESPERSON
OTHERS

54%

Interpretation:

By this pie-chart we can analyze that most of response came from news paper promotion is
54%,

Through electronic media is 18%, sales persons is 17% and rest of them by others, by this we
known that paper ads are best than others.

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7) What way you think promotion of HYUNDAIProducts Should be done

a) Offers b) Advertisement

c) Free Service d) others ( )

Offers Advertisement Advertisement Free Service Free service and offers All the
above
And offers

8 10 17 42 5 6

what do you think promotions

should be done

5% offer
6% 8%

17% advertisement
12%

10% free service

42%
offers & advertisement

Interpretation:

By this pie-chart we know that the promotions should be done by free service and
advertisement.

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PRODUCT PERFORMANCE

8. Which following future made you to buy HYUNDAI?

1) Quality 2) Price 3) Brand Name 4) Free service

SL.NO OPTIONS RESPONSE`

1 Quality 48

2 Price 13

3 Brand name 27

4 Free service 12

Source: customer survey (primary data)

RESPONSE`

1 Quality
2 Price
3 Brand name
4 Free service

Interpretation:

From the above analysis we conclude that among 100 customers 48% of the
customers buy HYUNDAI basing on Quality, 13% basing on price, 27% basing
on brand and 12% on free service offer.

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 9. Since how long you have been using HYUNDAI BIKE.

1) <1 year 2) 1 to 3 years 3) Above 3 years

SL.NO OPTIONS RESPONSE`

1 < 1 year 17

2 1 to 3 years 52

3 Above 3 years 31

Source: customer survey (primary data)

PERIOD OF USING BIKE

Above 3 < 1 year

years 17
31

1 to 3
years
52

Interpretation:

From the above analysis out of 100 customers when a question was raised
regarding the duration period they have been using the HYUNDAI. The
responded was less that 1 year is 17%, between 1-3 years 52% and above 3 years
31%.

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 10. Are you satisfied with the performance of your BIKE?

1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.NO OPTIONS RESPONSE`

1 Completely satisfied 69

2 Satisfied 29

3 Not satisfied 2

Source: customer survey (primary data)

Satisfaction of the attributes provided by HYUNDAI

Not
satisfied
Satisfied
2%
29%

completely
satisfied
69%

Interpretation;

From the above analysis we conclude that 69%of the cistomers are completely
satisfied, 29% are just satisfied and 2% of the respondents are not satisfied .

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 11. How comfortable are you while Driving The HYUNDAI ?

1) Good 2) Average 3) Poor

SL.NO OPTIONS RESPONSE`

1 Good 95

2 Average 5

3 Poor 0

Source: customer survey (primary data)

Comfortness while driving

Average Poor
5% 0%

Good
95%

Interpretation:

From the above analysis wee can conclude that out of 100 customers, 95% of the
customers felt good, 5% average ragarding the customers.

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 12 Did you experience any problem with your BIKE ?

1) Yes 2) No

SL.NO OPTIONS RESPONSE`

1 Yes 17

2 No 83

Source: customer survey (primary data)

Problems with HYUNDAI

Yes
17%

No
83%

Interpretation;

From the above analysis we conclude that out of 100 respondents 17% of the
respondents experienced problems with their phone and 83% of the respondents said that they
have not experienced any problem with the BIKE.

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 13Would you like to change your BIKE?

1) Yes 2) No

SL.NO OPTIONS RESPONSE`

1 Yes 98

2 No 2

Source: customer survey (primary data)

Changing BIKE

RESPONSE`

1 Yes
2 No

Interpretation:

From the above analysis we conclude that 2% of the customers wanted to change their
BIKE and 98% of the customers said not regarding the idea to change their choice from
HYUNDAI to other’s competitors .

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Service appointment

14 Is the appointment system useful to you?

1) Completely 2) Useful 3) Not useful

SL.NO OPTIONS RESPONSE`

1 Completely 25

2 Useful 73

3 Not useful 2

Source: customer survey (primary data)

Appointment system

Completely
Not useful
useful
2%
25%

Useful
73%

Interpretation;

Among the 100 customers when a question was raised regarding the usefulness of
service appointment system 25% of the respondent said completely useful, 73% said useful
and 2% said not useful.

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 15 Are you satisfied with the courtesy and friendliness of service personal?

1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.NO OPTIONS RESPONSE`

1 Completely satisfied 36

2 Satisfied 54

3 Not satisfied 10

Source: customer survey (primary data)

Courtesy and friendliness of service personal

Not
satisfied Completely
10% satisfied
36%

Satisfied
54%

Interpretation:

From the above analysis we conclude that 36% of the customers are completely
satisfied, 54% of the customers are satisfied and 10% of the customers are not satisfied
regarding the courtesy and friendliness of the service personnel.

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 16 Are you satisfied with infrastructure and customer lounge facilities?

1) Completely satisfied 2) Satisfied 3) Not satisfied

SL.NO OPTIONS RESPONSE`

1 Completely satisfied 44

2 Satisfied 54

3 Not satisfied 2

Source: customer survey (primary data)

Infrastructure and customer lounge

Not
satisfied Completely
2% satisfied
44%

Satisfied
54%

Interpretation:

From the above analysis we conclude that among 100 respondents 44% of the
customers are completely satisfied, 54% of the customers are satisfied and 2% of the
customers are not satisfied regarding the infrastructure and customer lounge facilities.

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 17 Are you shuffled from one sales person to another at the time of
purchase?

1) Yes 2) No

SL.NO OPTIONS RESPONSE`

1 Yes 0

2 No 100

Source: customer survey (primary data)

Shuffled form one sales person to another

No
0%

Yes
100%

Interpretation:

From the above analysis we conclude that 100% of the customers responded that they
have not been shuffled one sales person to another at the time of purchase.

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 18 Do you get the information from service advisor on the services to be
performed?

1) Completely 2) Adequately 3) Partially

SL.NO OPTIONS RESPONSE`

1 Completely 37

2 Adequately 54

3 Partially 9

Source: customer survey (primary data)

Information from service advisor

Partially
Completely
9%
37%

Adequately
54%

Interpretation:

From the above analysis we come to conclusion that 37% of the customers are getting
complete information from service advisor and 54% are getting adequately and 9% of the
customers are getting partial information regarding the services to be performed.

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 19 Are you getting clear explanation of the service performed and charges
at the time of delivery?

1) Yes all the time 2) Mostly 3) Sometime

SL.NO OPTIONS RESPONSE`

1 Yes all the time 29

2 Mostly 56

3 Sometime 15

Source: customer survey (primary data)

Explanation from the service person

Yes all the

Sometime time
15% 37%

Mostly
56%

Interpretation:

From the above analysis we conclude that out of 100 customers 29% of the customers
said all the time they are getting cleared explanation and 56% said mostly and 15% of the
customers are getting only sometime about the services performed and charges at the time of
delivery.

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 CHAPTER-V
FINDINGS

SUGGESTIONS

CONCLUSION

ANNEXURE

QUESTIONNAIRE

BIBILIOGRAPHY

74
 FINDINGS

 The company is advertisement is fair and is reaching to all people.

 The advertisement is difficult to understand in rural areas.
 HYUNDAI is not concentrating on the promotional activities for the customers and
for the retailers.
 The company is not concentrating on other types of advertising media.
 The package design is not communicative and eye catching, so package design and
color have to blend harmoniously to make the package communication effective.
 The company is not conducting road shows so as to get awareness in the public about
the product and services.
 Improve the marketing personnel and they should give full knowledge to the
customers and deales.
 HYUNDAI must improve their personnel selling direct contacting customers to give
awareness of their products.

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 SUGGESTIONS

 The company is not concentrating on other types of advertising media.

 The package design should be communicative and eye catching, so package design
and color have to blend harmoniously to make the package communication effective.

 Network (Market) should be expanding to rural villages.

 Reduce the Tariff rates to increase the market share.
 The company should conduct road shows so as to get awareness in the public about
the product and services.

 Improve the marketing personnel and they should give full knowledge to the
customers and retailers.

 The offers should be fairer and should also necessary to bring new models with
fascinating offers.

 It will help full in Increasing of Sales if The HYUNDAI brings bikeds for the
different groups of people such as, Students, Employees etc.,

76
 CONCLUSION

From project conclude that promotion of any service can be successfully executed by
creating awareness through word of mouth and by maintaining the service according to
Advertising and Sales Promotional Activities.

To enable the customers to get in touch with the service personal more easily, the number of
direct phones should be increase or provide the toll free number to give solutions of
constructions.

Periodically, review meetings with the customers in different areas should be convinced, to
have a general consensus regarding problems being faced by them.

To increase sales of the HYUNDAI Motor services, the company should concentrate on
advertisements and try to provide special offers.

If the company reduce the price of the HYUNDAI Motor servicesfor who purchase huge
quantities, then sales will be increased dramatically

77
 ANNEXURE

SURVEY ON PROMOTIONAL ACTIVITIES OF HYUNDAI

CUSTOMER PROFILE

Name :

Age :

Sex (m/F) :

Occupation :

Marital status :

Address :

Mobile No :

QUESTIONNAIRE

1) Income per month{ }

a) Less than 6000K b) 6001K -10000K

c) 10001K-15000K d) Above 15000K

2) Do you have BIKE?{ }

a) YES b) NO

3) Did you hear aboutHYUNDAIProducts? { }

a) YES b) NO

4. Are you using HYUNDAI Products? { }

a) YES b) NO

5. YES, what is your rating factor for BIKES which you will give? { }

RATING FACTOR A) GOOD B) FAIR C) BAD

6. If YES, how do you heard aboutHYUNDAI Products { }

78
 a) Electronic media b) Print media

c) Sales person d) others ( )

7 . What way you think promotion of HYUNDAIProducts Should be done{ }

a) Offers b) Advertisement

c) Free Service d) others ( )

8. Which following future made you to buy HYUNDAI?{ }

1) Quality 2) Price 3) Brand Name 4) Free service

9. Since how long you have been using HYUNDAI BIKE.{ }

1) <1 year 2) 1 to 3 years 3) Above 3 years

10. Are you satisfied with the Performance of your BIKE?{ }

1) Completely satisfied 2) Satisfied 3) Not satisfied

11.How comfortable are you while using your BIKE ?{ }

1) Good 2) Average 3) Poor

12.Did you experience any problem using your BIKE ?{ }

1) Yes 2) No

13.Would you like to change your BIKE{ }

1) Yes 2) No

79
 14.Is the appointment system useful to you?{ }

1) Completely 2) Useful 3) Not useful

15. Why did you choose this specific dealer? { }

1) Convenient location 2) Speedy service 3) Open on convenient hours

16. Are you satisfied with the courtesy and friendliness of service personal? { }

1) Completely satisfied 2) Satisfied 3) Not satisfied

17. Are you satisfied with infrastructure and customer lounge facilities?{ }

1) Completely satisfied 2) Satisfied 3) Not satisfied

18. Are you shuffled from one sales person to another at the time of purchase?{ }

1) Yes 2) No

19. Do you get the information from service advisor on the services to be performed?{ }

1) Completely 2) Adequately 3) Partially

20. Are you getting clear explanation of the service performed and charges at the time of
delivery?{ }

1) Yes all the time 2) Mostly 3) Sometime

Any suggestions

80
 BIBILIOGRAPHY

S.No.AUTHOR NAMEREFERED BOOKS

1. PHILLIP KOTLER Principles of Marketing – 11th Edition

Prentice Hall India.

2. PHILLIP KOTLAR Marketing Management – Millennium

Edition.Prentice Hall India

3. V.S.RAMASWAMY & Marketing Management -7th Edition

NAMAKUMARI Millennium India Ltd.

4. RICHARD R STILL Sales Management -5th Edition

Prentice Hall India.

5. G.C.BERI Marketing Research -6th Edition

HYUNDAI McGraw Hill Co.Ltd.

6. LUCK DAVID & Marketing Research -7th Edition

ROBIN RONALD Prentice Hall India.
WEB SITES

www.HYUNDAImotors.in

www.autoindia.com

www.customersopt.org

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