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CONTENTS

PAGE No.

CHAPTER 1 01

1.0 INTRODUCTION1.1 OBJECTIVE OF THE STUDY1.2 RESEARCH METHODOLOGY1.3 SAMPLE SIZE1.4 LIMITATION

CHAPTER 2 14

2.0 OVERVIEW OF LITERATURE

CHAPTER-3 25

3.0 COMPANY PROFILE3.1 INDUSTRY PROFILE3.2 PRODUCTS PROFILE3.3 DEALER PROFILE

CHAPTER-4 57

4.0 DATA ANALYSIS

CHAPTER-5 79

5.0 FINDING5.1 SUGGESTIONS5.2 CONCLUTION

ANNEXURE: QUESTIONNAIRE 83

BIBLIOGROPHY

1



CHAPTER - I

INTRODUCTION

2



1.1. CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management is perhaps the most important concept of modern marketing. Until recently CRM has been defined narrowly as a customer data

management activity. By this definition, it involves managing detailed information about

individual customers and carefully managing customer “touch points” in order to

maximize customer loyalty.

More recently, however, customer relationship management has taken on a

broader meaning. In this broader sense, customer relationship management is the overall

process of building and maintaining profitable customer relationships by delivering

superior customer value and satisfaction. It deals with all aspects of acquiring, keeping,

and growing customers.

RELATIONSHIP BUILDING BLOCKS: CUSTOMER VALUE AND

SATISFACTION

The key to building lasting customer relationships is to create superior customer

value and satisfaction. Satisfied customers are more likely to be loyal customer and to

give the company a larger share of their business.

CUSTOMER VALUE attracting and retaining customers can be a difficult task.

Customers often face a bewildering array of products and services from which to choose.

A customer buys from the firm that offers the highest customer perceived value the

customer’s evaluation of the difference between all the benefits and all the benefits andall the costs of a marketing offer relative to those of competing offers.

3



CUSTOMER SATISFACTION customer satisfaction depends on the products

perceived performance relative to a buyer expectation. If the products performance falls

short of expectations, the customer is dissatisfied. If performance matches expectations,

the customer is satisfied. If performance exceeds expectations, the customer is highly

satisfied or delighted.

Outstanding marketing companies go out of their way to keep important

customers satisfied. Highly satisfied customers make repeat purchases and tell other

about their good experiences with the product. The key is match customer expectation

with company performance. Smart companies aim to delight customers aim to delight

customers by promising only what they can deliver, then delivering more than they

promise.

However, although the customer centered firm seeks to deliver high customer

satisfaction relative to competitors, it does not attempt to maximize customer satisfaction.

A company can always increase customer satisfaction by lowering its price or increasing

its services. But this may result in lower profits. Thus the purpose of marketing is to

generate customer value profitably. This requires a very delicate balance: the marketer

must continue to generate more customer value and satisfaction but not “give away the

house”.

CAPTURING VALUE FROM CUSTOMERS

The first four steps in the marketing process involve building customer

relationships by creating and delivering superior customer value. The final step involves

capturing value in return, in the form of current and future sales, market share, and

profits. By creating superior customer value, the firm creates highly satisfied customers

who stay loyal and buy more. This, in turn, means greater long run returns for the firm.

Her, we discuss the outcomes of creating customer value: customer loyality and

retention, share of market and share of customer, and customer equity.

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CREATING CUSTOMER LOYALTY AND RETENTION

Good customer relationship management creates customer delight. In turn,

delighted customers remain loyal and talk favorable to others about the company and its

products. Studies show big differences in the loyalty of customers who are less satisfied,

some what satisfied, and completely satisfied. Even a slight drop from complete

satisfaction can create an enormous drop in loyalty. Thus the aim of customer

relationship management is to create not just customer satisfaction, but customer delight.

Companies are realizing that losing a customer means losing more than a single

sale. It means losing the entire stream of purchases that the customer would make over a

lifetime of patronage. For example, here is a dramatic illustration of customer lifetime

value:

GROWING SHARE OF CUSTOMER

Beyond simply retaining good customers to capture customer life time value,

good customer relationship management can help marketers to increase their share of

customer the share they get of the customers purchasing in their product categories.

Many marketers are now spending less time figuring out how to increase share of market

and more time trying to grow share of customer. Thus banks want to increase” share of

wallet” supermarkets and restaurants want to get more share of stomach car companies

want to increase share of garage and airlines want greater share of travel .

BUILDING CUSTOMER EQUITY

We can now see the importance of not just acquiring customers, but of keeping

and growing them as well. Customer relationship management takes a long term view.Companies want not only to create profitable customers, but to “own” them for life.,

capture their customer lifetime value, and earn a greater share of their purchases.

5



WHAT IS MARKETING

Marketing, more than any other business function deals with customers.

Although we will soon explore more-detailed definitions of marketing, perhaps the

simplest definition is this one: Marketing is managing profitable customer relationships.

The twofold goal of marketing is to attract new customers by promising superior value

and to keep and grow current customers by delivering satisfaction.

Wal-Mart has become the world Largest retailer, and the worlds largest company,

by delivering its promise,” Always low prices. Always! “ At Disney theme parks

”imaginers” work wonders in their quest to “ make a dream come true today.” Dell ,

leads the personal computer industry by consistently making good on its promise to “be

direct” Dell makes it easy for customers to customer design their own computer and have

them delivered quickly to their doorsteps or desktops. These and other highly successful

companies know that if they take care of their customers, market share and profits will

follow.

Sound marketing is critical to the success of every organization. Large for-profit

firms such as procter & Gamble, Sony, Wall-mart, IBM, and Marriott use marketing.

But so do not for profit organizations such as colleges, hospitals, museums, symphony

orchestras, and even churches.

MARKETING DEFINED

What is marketing? Many people think of marketing only as selling and

advertising and wonder every day we are bombarded with television commercials, direct

ail offers, sales calls, and internet pitches. However, selling and advertising are only the

tip of the marketing iceberg.

Today marketing must be understood not in the old sense of making a sale”

telling and selling” but in the new sense of satisfying customers needs. If the marketer does a good job of understanding consumer needs; develops products that provide

superior value; and prices distributes, and promotes them effectively these products will

sell very easily. Thus, selling and advertising are only part of a larger “marketing mix” a

set of marketing tools that work together to satisfy customer needs and build customer

needs and build customer relationships.

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Broadly defined, marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating and exchanging

value with others. In a narrower business context marketing involves building profitable,

value laden exchange relationships with customers. Hence, we define marketing as the

process by which companies create value for customer and build strong customer

relationship In order to capture value fro customers in return.

Customer value and satisfaction

Consumers usually face a broad array of products and services that might satisfy a

given need. How do they choose among many marketing offers? Customers form

expectations about the value and satisfaction that various marketing offers will deliver

and buy accordingly satisfied customer buy again and tell others about their good

experiences. Dissatisfied customers often switch to competitors and disparage the

product to others.

Marketers must be careful to set the right level of expectations. If they set

expectations too high, buyers will be disappointed. Customer value and customer

satisfaction are key building blocks for developing and managing customer relationships.We will revisit these core concepts later in the chapter.

7



OBJECTIVE OF THE STUDY:

The main objective was to study the customer behavior towards motor vehicle

with special reference to Hero Honda motor cycles in the district of

Hyderabad. The Various sub objectives were to find out the following:

To study the various methods of customer awareness regarding the product,

PASSION Plus.

To find the market share of Passion plus according to the segmentation.

To find the ways to develop better relationship with the customers.

To find the source of awareness regarding the bike in the customers mind.

To find the tough competitors for the Passion plus in the market.

The factors affecting the customers buying decision regarding the purchase of

motor Cycles.

The buyer’s opinion on the after sales services and attributes offered by the

Passion plus manufacturing motorcycles.

To the customers preferences towards two wheelers.

To the satisfaction levels of customers about after sale service.

8



RESEARCH METHODOLOGY:

The systematic design, collection, analysis, and reporting of data relevant to a

specific marketing situation facing an organization.

DEFINING THE PROBLEM:

Defining the problem and research objectives is often the hardest step in the

research process.

The marketing problem on which the survey is expected to focus should be

clearly defined. Before this clear definition is possible, it may be necessary to undertake

some exploratory research into certain aspects of the client's business. Example, the sale

organization methods of publicity, distribution arrangements etc., in an attempt to

pinpoint areas of significance of the inquiry. Preparatory work of nature carried out

conscientiously and objectively, is an essential element in the systematic study of

marketing problems. Management and researchers should work closely together in this

crucial task of developing survey objectives.

DEVELOPEING RESEARCH PLAN:

A research design is purely and simply the frame work of plan for a study that

guides the collection and analysis of the data. It is a map or blue print according to which

the research is to be collected. The research design specifies the methods for data

collection and data analysis.

The researcher specifically pinpoints that to carry out the research properly.1. How the data be collected.

2. Which instruments for data collection would be used, and

3. What sampling plan would be used?

The researcher has to carefully decide and make a choice from the group of different

alternatives available to him.

9

Developing theResearch planFor collecting

Information

Defining theProblem and

ResearchObjectives

Interpretingand reportingthe findings

Implementing theResearch plan-Collecting and

Analyzing the data



FIELD WORK/DATA COLLECTION:

This stage will be central point of the research activities. An effective sampling

plan would have been devised in stage two and the efficiencies of various methods of

collecting data would have been evaluated. At this stage, the survey methodology has to

be put into proactive. Since time constraints an inevitable, it would be advisable to plan

operations on a time schedule. Since so much of the efficiency of the company research

progress depends on reliable and valid data being gathered by research, activities during

this stage of research should be carefully planned and executed.

DATA ANALYSIS AND EVALUATION:

The data analysis and evaluation of the fourth step in the Research process. The

data are first edited, ceded and tabulated for the purpose of analyzing them. The editing,

coding and tabulating is a most when the interviewer has amassed a huge amount of data

concerning the Research project at hand. The analysis can be conducted by using simple

statistical tools like percentages, averages and measures dispersion. The collected data

may be analyzed by using diagrams, graphs, charts, picture Etc., Finally meaning data

may be extracted from the analysis thus conducted.

REPORTS PRESENTATION:

The last state in the research process should be done thoroughly. During the

preceding stage research will be planning how to present their findings. Tables, graphs

and other diagram data to illustrate the principle findings of the researchers.

RESEARCH INSTRUMENTS

Marketing research has a choice of two mail research instruments in collecting

the primary data. They are questionnaires and mechanical devices.

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QUESTIONNAIRE

It is a formalized instrument for asking information directly from the respondent

concerning behavior, demographic characteristics, level of knowledge and or attitude,

belief, and feelings. Because of its flexibility, it is by and large the most common

instrument used to collect the primary data.

Questionnaires contain two types of questions or a combination of Closed-End

questions and Open-End questions. Closed-end questions include all the possible

answers, and subjects make choices among them.

Open-end questions allow respondents to answer in their own words. In this research I

used Closed-end questions and Open-end questions. In Closed-end I used multiple choice

questions, Rating scale question and Dichotomous questions.

SAMPLING DESIGN

After deciding the research approach and instruments research must design the

sample from which the data is to be collected. Thus, the research has to decide whether

he will conduct a census or a sample survey to collect the data needed for his study.

In this project sample survey method has been taken i.e. only a portion of whole

population is surveyed.

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SAMPLING SIZE

Sampling size is the number of people being surveyed. In my research, 50

consumers are my sample size.

SAMPLING PROCEDURE

In my survey, I selected consumers randomly in the petroleum outlet who visited

for their two-wheelers. Therefore, it is random sample.

CONTACT METHOD

Once the sampling plan has been determined, marketing research must decide

how the consumer should be contacted. The choices are mail, telephone or personal

interview.

In my research I had done personal interviewing. It is most versatile of the three

methods because we can ask more questions and can record additional observationsabout the respondent.

SECONDARY DATA:

It is the data were collected for another purpose and already existing.

Secondary data provide a starting point for research and offer the advantage of low cost

and ready availability. The various sources from which secondary data is collected are1. Company profile and records.

2. Magazines.

3. News papers

4. Reference books related to subject.

The sample size of survey is only 100 respondents.

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LIMITATIONS:

In undertaking the study, the researcher encountered certain problems. Firstly, the

respondents were not available readily and the data collected as per the convenience of

the respondents. Secondly, the organizational policies had its influence on the

respondent’s opinions at the time of collection of data. Thirdly, the limitations of

sampling had an effect on the study as it was concentrating on a particular segment of

organizations.

The sample size is restricted to 100 respondents only.

Due to certain constraints, the survey is limited to the twin cities to Hyderabad

and Secunderabad.

The survey cannot be generalized to rural areas as it is limited to twin cities only.

Some respondents did not provide the requisite information pertaining to the

questionnaire.

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CHAPTER - II

14



OVERVIEW OF LITERATUREOVERVIEW OF LITERATURE

CUSTOMER RELATIONSHIP MANAGEMENT

The concept of relationship marketing was first coined by Berry in 1983. He

considered it to consist of attracting, maintaining and enhancing customer relationships

within organizations. In the years that followed, companies were engaging more and

more in a meaningful dialogue with individual customers. In doing so, new

organizational forms as well as technologies where used, eventually resulting in what we

know as Customer Relationship Marketing (CRM). The main difference between RM

and CRM is that the first does not acknowledge the use of technology, where the latter

uses Information Technology (IT) in implementing RM strategies.

Customer relationship management (CRM) is a customer-centric business

strategy with the goal of maximizing profitability, revenue, and customer satisfaction.

Technologies that support this business purpose include the capture, storage and analysis

of customer, vendor, partner, and internal process information. Functions that support

this business purpose include sales, marketing, customer service, training, professional

development, performance management, human resource development, and

compensation. Technology to support CRM initiatives must be integrated as part of an

overall customer-centric strategy. Many CRM initiatives have failed because

implementation was limited to software installation without alignment to a customer-

centric strategy.

The essence of CRM

The exact meaning of CRM is still subject of heavy discussions. However, the

overall goal can be seen as effectively managing differentiated relationships with allcustomers and communicating with them on an individual basis. Underlying thought is

that companies realize that they can supercharge profits by acknowledging that different

groups of customers vary widely in their behavior, desires, and responsiveness to

marketing.

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http://en.wikipedia.org/wiki/Organizations


http://en.wikipedia.org/wiki/Customer_relationship_management


http://en.wikipedia.org/wiki/Information_technology

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Customer_service


http://en.wikipedia.org/wiki/Training

http://en.wikipedia.org/wiki/Professional_development


http://en.wikipedia.org/wiki/Human_resource_development

http://en.wikipedia.org/wiki/Remuneration








http://en.wikipedia.org/wiki/Information_technology

http://en.wikipedia.org/wiki/Sales



http://en.wikipedia.org/wiki/Training



http://en.wikipedia.org/wiki/Human_resource_development






CRM is the philosophy, policy and coordinating strategy connecting different

players within an organization so as to coordinate their efforts in creating an overall

valuable series of experiences, products and services for the customer.

The different players within the organization are in identifiable groups:

• Customer Facing Operations - The people and the technology support of

processes that affect a customer's experience at the frontline interface between the

customer and the organization. This can include face to face, phone, IM, chat,

email, web and combinations of all medium. Self-service kiosk and web self-

service are doing the job of vocals and they belong here.

• Internal Collaborative Functional Operations - The people and technology support

of processes at the policy and back office which ultimately affect the activities of

the Customer Facing Operations concerning the building and maintaining of

customer relationships. This can include IT, billing, invoicing, maintenance,

planning, marketing, advertising, finance, services planning and manufacturing.

• External Collaboration functions - The people and technology support of

processes supporting an organization and its cultivation of customer relationships

that are affected by the organization's own relationship with suppliers/vendors

and retail outlets/distributors. Some would also include industry cooperative

networks, e.g. lobbying groups, trade associations. This is the external network foundation which supports the internal Operations and Customer facing

Operations.

• Customer Advocates and Experience Designers - Creative designers of customer

experience that meet customer relationship goals of delivering value to the

customer and profit to the organization (or desired outcomes and achievement of

goals for non-profit and government organizations).

• Customer and Employee Surveyors and Analysts - Customer Relationships are

both fact driven and impression driven - the quality of an interaction is as

important as the information and outcome achieved, in determining whether the

relationship is growing or shrinking in value to the participants.

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Technology considerations:

The technology requirements of a CRM strategy must be guided by an overall

view of who is the customer and what value they are to get from engaging with the

organization.

The basic building blocks:

A database for customer lifecycle (time series) information about each customer and

prospect and their interactions with the organization, including order information,

support information, requests, complaints, interviews and survey responses.

Customer Intelligence - Translating customer needs and profitability projection into

game plans for different segments or groups of customers, captured by customer

interactions (Human, automated or combinations of both) into software that tracks

whether that game plan is followed or not, and whether the desired outcomes are

obtained.

Business Modeling - Customer Relationship Strategy, Goals and outcomes: Numbers and

description of whether goals were met and models of customer segments and game plans

worked as hypothesized.

Learning and Competency Management Systems - Customer Capacity and Competency

Development - Training and improving processes and technology that enable the

organization to get closer to achieving the desired results. Complex systems require

practice in order to achieve desired outcomes, especially when humans and technology

are interacting. Iteration is the key to refining, improving and innovating to stay ahead of

the competition in Customer Relationship Management. (Successful tools, technology

and practices will be copied by the competition as soon as they are proven successful.)

Analytics and quality monitoring - Voice recognition, video pattern matching, statistical

analysis, activity-based costing to ultimately determine profitability of customer

relationship policies and activities over the lifecycle of each group of customers sharing a

defined set of characteristics.

17

http://en.wikipedia.org/wiki/Database





Collaboration and Social networks - Profiling and interactive technology that

allows the customers to interact with the business and their fellow customers and others:

prospective customers, strategic partners.

The building blocks can be implemented over time separately, but eventually

need to be dynamically coordinated. The ongoing alignment of the basic building blocks

distinguishes an elegant seamless CRM implementation which successfully builds

mutually valuable relationships.

Operational CRM:

Operational CRM provides support to "front office" business processes, including

sales, marketing and service. Each interaction with a customer is generally added to a

customer's contact history, and staff can retrieve information on customers from the

database when necessary.

One of the main benefits of this contact history is that customers can interact with

different people or different contact channels in a company over time without having to

describe the history of their interaction each time. Consequently, many call centers use

some kind of CRM software to support their call center agents.

Operational CRM processes customer data for a variety of purposes:

• Managing Campaigns

• Enterprise Marketing Automation• Sales Force Automation

Analytical CRM:

Analytical CRM analyzes customer data for a variety of purposes:

• Design and execution of targeted marketing campaigns to optimize marketingeffectiveness

• Design and execution of specific customer campaigns, including customer acquisition, cross-selling, up-selling, retention

• Analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.)

• Management decisions, e.g. financial forecasting and customer profitabilityanalysis

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http://en.wikipedia.org/wiki/Front_office


http://en.wikipedia.org/wiki/Call_centre

http://en.wikipedia.org/wiki/Marketing_effectiveness



http://en.wikipedia.org/wiki/Cross-selling

http://en.wikipedia.org/wiki/Up-selling

http://en.wikipedia.org/wiki/Retention

http://en.wikipedia.org/wiki/Front_office


http://en.wikipedia.org/wiki/Call_centre



http://en.wikipedia.org/wiki/Cross-selling

http://en.wikipedia.org/wiki/Up-selling

http://en.wikipedia.org/wiki/Retention



Successes:

While there are numerous reports of "failed" implementations of various types of

CRM projects, these are often the result of unrealistic high expectations and exaggerated

claims by CRM vendors.

Many of these "failures" are also related to data quality and availability. Data

cleaning is a major issue. If the company CRM strategy is to track life-cycle revenues,

costs, margins and interactions between individual customers, this must be reflected in all

business processes. Data must be extracted from multiple sources (e.g.,

departmental/divisional databases, including sales, manufacturing, supply chain,

logistics, finance, service, etc.), requiring an integrated, and comprehensive business

processing system to be in place with defined structures and data quality. If not,

interfaces must be developed and implemented to extract data from different systems.

This creates a demand far beyond customer satisfaction to understand the full business-

to-business relationship. For this reason, CRM is more than a sales or customer

interaction system.

The experience from many companies is that a clear CRM requirement with

regard to reports (e.g., input and output requirements) is of vital importance before

starting any implementation. With a proper demand specification, a great deal of time

and money can be saved based on realistic expectations of systems capability. A well

operating CRM system can be an extremely powerful tool for management and customer

strategies.

Privacy and data security

One of the primary functions of CRM software is to collect information about

customers. When gathering data as part of a CRM solution, a company must consider

customer privacy and data security with respect to legal and cultural environments. Some

customers prefer assurance that their data is not shared with third parties without their

consent and that it cannot be illicitly accessed by third parti

20

http://en.wikipedia.org/wiki/Customer_privacy

http://en.wikipedia.org/wiki/Data_security

http://en.wikipedia.org/wiki/Customer_privacy

http://en.wikipedia.org/wiki/Data_security



Customer relationship management is perhaps the most important concept of

modern marketing. Until recently CRM has been defined narrowly as a customer data

management activity. By this definition, it involves managing detailed information about

individual customers and carefully managing customer “touch points” in order to

maximize customer loyalty.

More recently, however, customer relationship management has taken on a

broader meaning. In this broader sense, customer relationship management is the overall

process of building and maintaining profitable customer relationships by delivering

superior customer value and satisfaction. It deals with all aspects of acquiring, keeping,

and growing customers.

EXCHANGES AND RELATIONSHIPS

Marketing occurs when people decide to satisfy need and wants through exchange

relationships. Exchange is the act of obtaining a desired object from someone by

offering something in return. In the broadest sense, the marketer tries to bring about a

response to some marketing offer. The response may be more than simply buying or

trading products and services. A political candidate, for instance, wants votes, a church

wants membership, and a social action group wants idea acceptance.

Marketing consists of actions taken a build and maintain desirable exchange relationships

with target audiences involving a product, service, idea, or other object. Beyond simply

attracting new customers and creating is to retain customer and grow their business with

the company. Marketers want to build strong relationships by consistently delivering

superior customer value. We will expand on the important concept customer relationship

management later in the chapter.

SELECTING CUSTOMERS TO SERVE

The company must first decide who it will serve. It does this by dividing the market

in to segments of customers (market segmentation) and selecting which segments it will

go after (target marketing) .some people think of marketing management as finding as

many customers as possible and increasing demand. But marketing manager know that

21



they cannot serve all customers in every way. By trying to serve all customers, they may

not serve any customers well. Instead, the company wants to select only customer that it

can serve well and profitably. For example, Nordstrom stores profitable target families

with more modest means.

Some marketers may even seek fewer customers and reduced demand. For

example, many power companies have trouble meeting demand during peak usage

periods. In these and other cases of excess demand, demand, and companies may

practice reduce the number of customers or to shift their demand temporarily or

permanently? For instance, to reduce demand for space on congested expressways

Washington, D.C., the metropolitan Washington council of Governments has set up a

web site encouraging commuters to carpool and use mass transit.

Thus marketing managers must decide which customers they want to target, and

on the level, timing and nature of their demand. Simply put, marketing management is

customer management and demand management.

MARKETING MANAGEMENT ORIENTATIONS

Marketing management wants to design strategies that will build profitable relationships

with target consumers. But what philosophy should guide these marketing strategies?What weight should be given to the interests of customers, the organizations and society?

Very often, these interests conflict.

There are five alternative concepts under which organizations design and carry

out their marketing strategies the productions, product, selling, marketing, and societal

marketing concepts.

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THE PRODUCTION CONCEPT

The production concept holds that consumers will favor products that are

available and highly affordable. Therefore, management should focus on improving

productions and distribution efficiency. This concept is one of the oldest orientations

that guide sellers.

PRODUCT CONCEPT

The idea that consumers will favor products that offer the most in quality,

performance, and features and that the organizations should therefore devote its energy to

making continuous product improvements.

SELLING CONCEPTS

The idea that consumers will not buy enough of the firms’ products unless it

undertakes a large scale selling and promotions efforts.

MARKETING CONCEPTS

The marketing management philosophy that holds that achieving organizational goals

depends on knowing the needs and wants of target markets and delivering the desired

satisfactions better than competitors do.

THE SOCIETAL MARKETING CONCEPT

A principle of enlightened marketing that holds that a company should make

good marketing decisions by considering consumers wants the companies’ requirements,

consumers’ long-run interests, and society’s long run interests.

BUILDING CUSTOMER RELATIONSHIPS

The first three steps in the marketing process understanding the marketplace and

customer needs, designing a customer driven marketing strategy, and constructing

marketing programs all lead up to the fourth and most important step building profitable

customer relationships

23



It needs to be emphasized at the very outset that there is no unified, tested and

universally established theory buying behavior. What we have today are certain ideas on

buying behavior. Some of these ideas are taken their cue from economics, others from

psychology, and yet other is drawn simultaneously from several of the social sciences.

Professional researchers as well as business firms have studied the subject extensively,

contributing to a large assortment of knowledge on buyer behavior. However, a

universally accepted theory on the subject is yet to emerge. It is with this understanding

of the limitations of buyer behavior studies that we have to precede further.

Buying behavior concerned with the activities and actions of people and

organizations that purchase and use economic goods and services, including the

influences on these activities and actions.

The Consumer’s Environment

The many environmental influences combine to form a total life setting for

consumers. Purchasing and using product and services are among the ways in which

people respond to and interact with the world about them. Marketing managers must

understand the live setting of consumers to fully appreciate what consumers are trying to

accomplish with particular purchase. Only then can a company demonstrate the relevance

of its marketing offer to customers by showing how it will help them deal with their life

setting. Ultimately, convincing customers of the product offer’s relevance is crucial to

sales growth in markets.

Marketing stimuli consist of the four P s: product, price, place and promotion.

Other stimuli include major forces and events in the buyer’s environment: economic,

technological, political, and cultural. All these inputs enter the buyer’s black box where

they are turned into a set of observable buyer responses: product choice, brand choice,

dealer choice, purchase timing and purchase amount.

The marketer want to understand how the stimuli are changed into response

inside the consumer’s black box, which has two parts: First, the buyer’s characteristics

influence how he or she perceives and reacts to the stimuli; Second, the buyer’s decision

process itself affect the buyer’s behavior.

24



CHAPTER - IIICHAPTER - III

COMPANY PROFILE:COMPANY PROFILE:

25



Hero Honda Motors Ltd. "Desh ki Dhadkan"

Hero Honda is the World's No.1 two-wheeler manufacturing company having the

trust of more than 5 million customers. The company is a joint venture of Hero Cycles of

India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure

and Splendor are its famous brands on Indian roads.

Type Public company BSE:HEROHONDA M

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarters New Delhi, India

Key people

Brijmohan Lal Munjal, Founder

Mr. Brijmohan Lal Munjal, Chairman

Mr. Toshiaki Nakagawa, Joint Managing Director

Mr. Pawan Munjal, Managing Director, CEO

Industry Automotive

Products Motorcycles, Scooters

Revenue U$ 2.8 billionSlogan Desh Ki Dhadkan

Website www.Herohonda.com

Hero Honda started out, as a joint venture between Hero Group, the world’s

largest bicycle manufacturers and the Honda Motor Company of Japan, has today

become the world’s single largest Two-Wheeler company. Coming into existence on

26

http://en.wikipedia.org/wiki/Category:Types_of_companies

http://en.wikipedia.org/wiki/Public

http://en.wikipedia.org/wiki/Bombay_Stock_Exchange


http://www.bseindia.com/price_finder/stockreach.asp?scripcd=500182


http://en.wikipedia.org/wiki/Gurgaon


http://en.wikipedia.org/wiki/Haryana


http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/New_Delhi



http://en.wikipedia.org/wiki/Brijmohan_Lal_Munjal


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http://en.wikipedia.org/wiki/Product_(business)

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http://en.wikipedia.org/wiki/Slogan

http://en.wikipedia.org/wiki/Website

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http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Revenue

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http://www.herohonda.com/site/home/home.asp



January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution

on two-wheels made even more famous by the ‘Fill it – Shut it – Forget it’ campaign.

Driven By the trust of over 5 million customers, the Hero Honda product range

today commands a market share of 48% making it a veritable giant in the industry. Add

to that technological excellence, an expansive dealer network, and reliable after sales

service, and you have one of the most customer – friendly companies.

Brijmohan Lall Munjal – The king of the Road

The venerated patriarch and visionary of the Hero Group,

Mr. Brijmohan Lall Munjal is a first generation entrepreneur who started very small

and through sheer hard work and perseverance has today made his two-wheeler venture

the world’s no.1 Two Wheeler Company.

Customer satisfaction, a high quality product, the strength of Honda technology

and the Hero group’s dynamism have helped HHML scale new frontiers and exceed

limits.Hero, the brand name synonymous with two-wheelers in India, is a multi-unit,

multi-product, geographically diversified, Group of Companies – the reflection of the

steely ambition and indomitable grit of the Munjal Family…

Mission Statement Of Brij Mohan Lall Munjal

“It’s our mission to strive for synergy between technology, systems and human

resources to produce products and services.

Hero Honda has a reputation of being the most fuel-efficient and the largest selling

Indian motorcycle. Its commitment of providing the customer with excellence is self-

evident. A rich background of producing high value products at a reasonable price led the

world's largest manufacturer of motorcycles to collaborate with the world's largest

bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and the Hero

Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so

harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, aHonda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish itself as an

intelligent purchase. Its unique features like fuel conservation, safety riding courses and

mobile workshops helped the group reach in the interiors of the country.

27



Finance services helped facilitate purchase, as did an efficient dealer network across 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.

Founder Munjal Brothers: Mr. Satyanand Munjal, Mr.Brijmohan Lall Munjal and Mr. O. P. Munjal.

Year of Establishment 1984 (The Hero Group was established in 1956)

Mission "Its our mission to strive for synergy betweentechnology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of our customers.While doing so, we maintain the highest standards of ethics and societal responsibilities."

- Mr Brijmohan Lall Munjal, Chairman & MD

Foundational Work Before the establishment of the Hero Group in 1956,Munjal Brothers use to manufacture bicyclecomponents in the early 1940's.

Industry Automotive - Two Wheelers

Business Group The Hero Group

Capitalization Ratio Hero Group - 26%Honda Motor Co., Ltd. - 26%Others - 48% (listing)

Listings & its codes BSE - Code: 500182 NSE - Code: HERO HONDABloomberg - Code: HH@IN

No. of Sales Outlets 1500+

Joint Venture The Hero Group (India) with Honda Motor Co., Ltd.(Japan)

Registered & CorporateOffice

34, Community CentreBasant Lok, Vasant Vihar New Delhi - 110057Tel.: +(91)-(11)-26142451 - 59

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Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 /2132

Work Station 69 Km Stone New Delhi-Jaipur HighwayDaruhera - 121106, Haryana

Website www.herohonda.comwww.herogroup.com

Sales Performance

Dec'05 Dec'06 Apr'07-Dec'08 Apr'08-Dec'09

Domestic 2225250 238822 1892540 2155479

Exports 5501 6282 43441 72815

Financials at a Glance

(Rupees in Crores)

Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

Total Income 3191 4539 5195 5997 7563

Profit before Tax 377 694 885 1072 1217

Profit after Tax 247 463 581 728 810

Total Debt 66 116 134 175 202

Net Fixed Assets 454 491 517 589 715

OPBIT*/Net sales-% 13.2 15.0 16.7 16.8 15.7

OPBT**/Net Sales*(%) 11.7 13.9 15.5 15.6 14.6

Dividend Per Share ( Rs) 3.0 17.0 18.0 20 20

Dividend Payout (%) 26.7 75.5 69.8 61.9 56.3

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http://www.herohonda.com/

http://www.herogroup.com/


http://www.herogroup.com/



31st March 03 represents an interest free loan from the Government of Haryana on

account of sales tax deferment, and has no costs attached to it.

Service Statement

Hero Honda’s constant endeavor is to support the company’s mandate of

providing highest level of customer satisfaction by taking CARE of your motorcycle

service & Maintenance through our vast network of more than 1000 committed dealers &

service outlets spread across the country.

Hero Honda’s state-of-the-heart authorized workshop have well laid out standards

for motorcycle servicing supported by fully equipped infrastructure in terms of quality

precision instruments, pneumatic tools & a team of highly trained service technicians.

Having your motorcycle serviced at an authorized workshop ensures highest standards of

service quality and reliability.

KEY POLICIES

Environment policy:

Towards creating and preserving a cleaner environment Hero Honda Motors Ltd.

Manufacturer of two-wheelers is committed to prevention of pollution, continual

improvement of our environment performance and compliance with all applicable

environmental legislation and regulations.

Towards this, we shall strive to:

• Create proactive environmental management systems that address all

environmentally significant aspects related to our products and process.

• Minimize the generation of waste and conserve resources through better

technology and practices, and

• Promote environmental awareness amongst our employees and motivate them to

fulfill our commitments.

Hero Honda pledges towards creating and preserving cleaner environment.

Quality policy:

Hero Honda continues to firmly believe in providing the customer value for money,

for years of their products and services. This they shall maintain and improve.

31



In decision-making, quality, safety and service they give much consideration for

productivity, cost and delivery. Quality shall be built into every aspect of their work life

and business operations. Quality improvements and customer satisfaction shall be the

responsibility of every employee.

TPM POLICYHero Honda adopts Total productivity maintenance as a means of creating a safe and

participative work environment in which all employees target the elimination of losses in

order to continuously enhance the capacity, flexibility, reliability and capability of its

processes, leading to higher morale and greater organizational profitability.

HERO HONDA BRAND

Their Brand Identity:

Hero Honda Brand is the visual expression of their thoughts and actions. It conveys

to everyone that their intention is to constantly inspire confidence. Their customers

are the primary audience for their brand. Indeed, their brand identity is shaped as

much always reinforces the distinctiveness and the power of their brand. They can do

this by living upon brand essence and by continuously seeking to enhance their

customer’s experience. In doing so, they ensure a special place for ourselves in the

hearts and the minds of their customers.

Brand Essence:

Our Brand Essence is the soul of our brand.

Our Brand essence encapsulates our mission at Hero Honda.

It is the singular representation of our terms of endearment with or customers.

It provides the basis on which we grow profitably in the market.

Our Brand Essence is Excitement.

Hero Honda strives to inspire confidence through excitement engineering.

Blending together youthful creativity and competitive technology to exceed the

spoken and the implicit expectations of our customers.

By challenging the given. By exploring the unknown and there by stretching

ourselves toward tomorrow, today.

32



Brand Values:

We live our brand by its values of learning, innovation, perfection, speed and

Transparency. Hero Honda will inspire confidence through excitement engineering.

Learning:Learning is how we ensure proactively. It is a value that embraces knowledge as

the platform for building well informed, reasoned a decisive action.

Innovation:

Innovation is how we create the future. It is a value that provokes us to reach

beyond the obvious in pursuit of that which exceeds the ordinary.

Perfection:

Perfection is how we set new standards. It is a value exhibits our determination toexcel by endeavoring to establish new benchmarks all the time.

Speed:

Speed is how we convey clear conviction. It is a value that keeps us sharply

responsive, mirroring our commitment towards our goals and processes.

Transparency:

Transparency is how we characterize ourselves. It is a value that makes us worthy

of credibility through integrity, of thrust through

Sensitivity and of loyalty interdependence.

Hero Group Companies Are:

• Hero Honda Motors Limited

• Hero Cycles Limited

• Hero Auto Limited

• Munjal Showa Limited

• Majestic Auto Limited

• Hero Exports

• Munjal Auto Industries Limited

• Sunbeam Auto Limited

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• Munjal Casting

• Highway Industries Limited

• Rockman Cycle Industries Limited

• Hero Cycles Cold Rolling Division

• Munjal Auto Components

• Satyam Auto Components Limited

• Hero Global Design

• Hero Honda Fin lease Limited

• Easy Bill Limited

• Munjal Sales Corporations

• Hero Financial Services Limited

BOARD OF DIRECTORS

No. Name of the Directors Designation

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

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro Takedagawa Non-executive Director

8 Mr. Satoshi Matsuzawa(Alternate Director to Mr. Takashi Nagai)

Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent Director

10 Gen.(Retd.) Ved Prakash 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. Sunil Bharti Mittal Non-executive & Independent Director

15. Mr. Meleveetil Damodaran Non-executive & Independent Director

16. Mr. Arun Nath Maira Non-executive & Independent Director

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3.1 INTRODUCTION TO TWO WHEELER INDUSTRY3.1 INTRODUCTION TO TWO WHEELER INDUSTRY

India is the second largest producer and manufacturer of two-wheelers in the

world. Indian two-wheeler industry has got spectacular growth in the last few years.

Indian two-wheeler industry had a small beginning in the early 50's. The Automobile

Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being

scooters and mopeds. Indian companies are among the largest two-wheeler

manufacturers in the world. Hero Honda and Baja Auto are two of the Indian companies

that top the list of world companies manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in the mid 1980s. The

openness of Indian market to foreign companies leads to the arrival of new models of

two-wheelers into India. Easy availability of loans from the banks, relatively low rate of

interest and the discount of prices offered by the dealers and manufacturers lead to the

increasing demand for two-wheeler vehicles in India. This lead to the strong growth of

Indian automobile industry.

History History

The inspiration for arguably the first motorcycle was designed and built by the

German inventors Gottlieb Daimler and Wilhelm Maybach in Bad Cannstatt (since 1905

a city district of Stuttgart) in 1885.[1]

The first petroleum-powered vehicle, it wasessentially a motorised bicycle, although the inventors called their invention the

Reitwagen ("riding car"). However, if one counts two wheels with steam propulsion as

being a motorcycle, then the first one may have been American. One such machine was

demonstrated at fairs and circuses in the eastern U.S. in 1867, built by Sylvester Howard

Roper of Roxbury, Massachusetts.

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http://en.wikipedia.org/wiki/Germany


http://en.wikipedia.org/wiki/Gottlieb_Daimler

http://en.wikipedia.org/wiki/Wilhelm_Maybach


http://en.wikipedia.org/wiki/Bad_Cannstatt


http://en.wikipedia.org/wiki/Stuttgart

http://en.wikipedia.org/wiki/Motorcycle#_note-The_Past_-_1800s:_First_motorcycle

http://en.wikipedia.org/wiki/Petroleum


http://en.wikipedia.org/wiki/Bicycle


http://en.wikipedia.org/wiki/Gottlieb_Daimler



http://en.wikipedia.org/wiki/Stuttgart

http://en.wikipedia.org/wiki/Motorcycle#_note-The_Past_-_1800s:_First_motorcycle


http://en.wikipedia.org/wiki/Bicycle



In 1894, Hildebrand & Wolfmüller became the first motorcycle available for

purchase. In the early period of motorcycle history, many producers of bicycles adapted

their designs to accommodate the new internal combustion engine.

As the engines became more powerful, and designs outgrew the bicycle origins, the

number of motorcycle producers increased.

Until the First World War , the largest motorcycle manufacturer in the world was

Indian, producing over 20,000 bikes per year. By 1920, this honour went to Harley-

Davidson, with their motorcycles being sold by dealers in 67 countries, until 1928 when

DKW took over as the largest manufacturer.

After the Second World War , the BSA Group became the largest producer of

motorcycles in the world, producing up to 75,000 bikes a year in the 1950s. The German

company NSU Motorenwerke AG held the position of largest manufacturer from 1955

until the 1970s.

From the 1960s through the 1990s, small two-stroke motorcycles were popular

worldwide, partly as a result of East German Walter Kaaden's engine work in the 1950s.

Today, the Japanese manufacturers, Honda, Kawasaki, Suzuki, and Yamaha

dominate the motorcycle industry, although Harley-Davidson still maintains a high

degree of popularity in the United States. Recent years have also seen a resurgence in the

popularity of several other brands sold in the U.S. market, including BMW, KTM,

Triumph, Aprilia, Moto Guzzi and Ducati.

Outside of the USA, these brands have enjoyed continued and sustained success,

although Triumph, for example, has been re-incarnated from its former self into a modern

world-class manufacturer. In overall numbers, however, the Chinese currently

manufacture and sell more motorcycles than any other country and exports are rising.

The quality of these machines is asserted to be somewhat lower than their Japanese,

European and American counterparts.

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http://en.wikipedia.org/wiki/Indian_(motorcycle)


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http://en.wikipedia.org/wiki/DKW


http://en.wikipedia.org/wiki/Second_World_War

http://en.wikipedia.org/wiki/Birmingham_Small_Arms_Company


http://en.wikipedia.org/wiki/NSU_Motorenwerke_AG

http://en.wikipedia.org/wiki/German_Democratic_Republic


http://en.wikipedia.org/wiki/Honda

http://en.wikipedia.org/wiki/Kawasaki_Heavy_Industries


http://en.wikipedia.org/wiki/Suzuki


http://en.wikipedia.org/wiki/Yamaha_Motor_Corporation



http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/BMW_motorcycles

http://en.wikipedia.org/wiki/KTM

http://en.wikipedia.org/wiki/Triumph_Motorcycles

http://en.wikipedia.org/wiki/Aprilia


http://en.wikipedia.org/wiki/Moto_Guzzi



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http://en.wikipedia.org/wiki/Internal_combustion_engine

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http://en.wikipedia.org/wiki/Second_World_War


http://en.wikipedia.org/wiki/NSU_Motorenwerke_AG


http://en.wikipedia.org/wiki/Honda





http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/BMW_motorcycles

http://en.wikipedia.org/wiki/KTM

http://en.wikipedia.org/wiki/Triumph_Motorcycles






Additionally, the small-capacity scooter is very popular through most of the

world. The Piaggio group of Italy, for example, is one of the world's largest producers of

two-wheeled vehicles. The scooter culture has, as yet, not been adopted widely in North

America.

Construction

Motorcycle construction

Motorcycle construction is the engineering, manufacturing, and assembly of components

and systems for a motorcycle which results in performance, cost and aesthetics desired

by the designer. With some exceptions, construction of modern mass-produced

motorcycles has standardised on a steel or aluminium frame, telescopic forks holding the

front wheel, and disc brakes. A one- to eight-cylinder gasoline powered engine coupled

to a manual, five- or six-speed sequential transmission drives the swingarm-mounted rear

wheel by a chain, driveshaft or belt.

Key players in the Two-wheeler Industry :

After facing its worst recession during the early 1990s, the two-wheeler industry

bounced back with a 25% increase in volume sales in February 1995. The scooters are

considered as family vehicles. There are many two-wheeler manufacturers in India.Major players in the 2-wheeler industry are Hero Honda Motors Ltd (HHML), Bajaj

Auto Ltd (Bajaj Auto) and TVS Motor Company Ltd (TVS).

The other key players in the two-wheeler industry are Kinetic Motor Company

Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML), Yamaha Motors India

Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto), Royal Enfield Ltd (REL) and Honda

Motorcycle & Scooter India (P) Ltd (HMSI).

Types of Two-wheelers in India :

There are mainly three types of two-wheelers available in India. They are

Motorcycles, Scooters and Scooterettes/Mopeds.

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http://en.wikipedia.org/wiki/Motor_scooter

http://en.wikipedia.org/wiki/Piaggio

http://en.wikipedia.org/wiki/Motorcycle_construction

http://en.wikipedia.org/wiki/Steel


http://en.wikipedia.org/wiki/Aluminium

http://en.wikipedia.org/wiki/Motorcycle_fork

http://en.wikipedia.org/wiki/Disc_brake


http://en.wikipedia.org/wiki/Motorcycle_engine


http://en.wikipedia.org/wiki/Sequential_gearbox


http://en.wikipedia.org/wiki/Swingarm

http://en.wikipedia.org/wiki/Driveshaft


http://en.wikipedia.org/wiki/Gilmer_belt


http://en.wikipedia.org/wiki/Motor_scooter

http://en.wikipedia.org/wiki/Piaggio

http://en.wikipedia.org/wiki/Motorcycle_construction


http://en.wikipedia.org/wiki/Aluminium

http://en.wikipedia.org/wiki/Motorcycle_fork




http://en.wikipedia.org/wiki/Swingarm





Motorcycles in India :

Bikes comprise a major segment of Indian two wheeler industry.

Some of the major two wheeler auto player who have their share in the two wheeler bikesindustry are as follows:

Company : Bajaj Auto Ltd

• Bajaj Avenger

• Bajaj CT 100

• Bajaj Platina

• Bajaj Discover DTSi

• Bajaj Pulsar DTSi

• Bajaj Wave

•

Bajaj Wind 125• Sonic DTSi

Company : HERO HONDA

• Hero Honda Achiever

• Hero Honda CD Dawn

• Hero Honda CD Deluxe

• Hero Honda Glamour

• Hero Honda Glamour-Fi

•

Hero Honda Karizma• Hero Honda Passion Plus

• Hero Honda Pleasure

• Hero Honda Super Splendor

• Hero Honda Splendor NXG

• Hero Honda CBZ X-Treme

Company : Kinetic Motor Company

• Kinetic Aquila

• Kinetic Boss

• Kinetic Challenger

• Kinetic Comet

• Kinetic GF

• Kinetic Stryker

•

Company : TVS MOTOR

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• TVS Apache

• TVS Centra

• TVS Fiero

• TVS Star

• TVS Victor

Company : Yamaha Motor India

• Yamaha CruxS

• Yamaha G5

• Yamaha Gladiator

Scooters in India :

The scooter and the scooterette share in the Indian two wheeler market is 13.4%.

The main models available in India are Bajaj Chetak, Honda Eterno, Kinetic Blaze, LML

NV SPL and LML Select II.

Scooterettes/Mopeds :

TVS Motors launched India's first 50cc, 2 seater moped: TVS Moped 50. TVS

also launched India's first indigenous scooterette: Scooty in 1994. This segment has

about one-fourth share in the Indian two wheeler industry. The major models available in

India are Bajaj Wave, Bajaj Kristal DTSi, Bajaj Blade DTSi, Hero Honda Pleasure,

Kinetic Kine, Kinetic 4S, Kinetic Nova, Kinetic Zoom, Kinetic V2 Range, Kinetic King

100, Kinetic Luna Super, Kinetic Luna TFR, Yo Smart, Honda Dio, Honda Activa, TVS

Scooty and TVS XL.

39



PRODUCTS PROFILE

Hero Honda Passion Plus

With the maximum power of 7.5 PS @ 8000 rpm, this comes with 4 stroke single

cylinder air-cooled OHC engine.

Its tubular double cradle frame along with its 9 new two-tone body colors and two tone

front fenders give its style statement to the extremely finicky bike lovers. To mention few

more styling features, this bike is equipped with body color rear view mirror, aluminum

die cast rear grip, heat protector on the muffler, and new dials in the instrument panel etc.

Its enough luggage space with locking facility, lockable seat and helmet holder are the

important features for rider's convenience. Comfort of the journey is defined by the

arrangement of adjustable rear cushion, wide and spacious seat and broad rear tyre.

Its wider wheel base provides proper safety to the biker. Safety of riding is further taken

care by the arrangement of several lighting fitting like position lamp, side reflector,

headlight with halogen lamp, multi reflector winker etc.

It is found in different colors:

•

Moon Yellow• Cloud Silver • Amranth Maroon• Tornado Grey• Tahitian Blue• Black with Magna Red Stripes• Black with Purple Stripes• Candy Blazing Red

40



• Turquoise Blue• Tasmanian Green

TECHNICAL SPECIFICATIONS OF HERO HONDA PASSION PLUS

Dimension & Weight

Overall height 1060 mm

Overall length 1980 mm

Overall Width 720 mm

Wheelbase 1235 mm

Ground Clearance 160 mm

Kerb weight 116 kg

Fuel Tank Capacity 12.8 Litre

Engine

Type Air - Cooled OHC

Stroke (2/4) 4-stroke

No. of cylinders Single Cylinder

Displacement 97.2 cc

Electrical 12 V-2.5 Ah

Transmission

No. of Gears 4 Speed Constant Mesh

Clutch Multi-Plate Wet Type

Performance

Maximum Power 7.5 PS @ 8000 rpm

Start Kick Starter

Suspensions

Front Telescopic Hydraulic Fork

Rear Swing Arm with 5 step adjustable hydraulicdamper

Brakes

FrontInternal Expanding Shoes Type 130mm/Hydraulic Disc Type (Optional)

41



Rear Internal Expanding Shoes Type 130 mm

Tyres

Front 2.75 x 18” - 4 PR / 42 P

Rear 3.00 x 18” - 4 / 6 PR

1) Hero Honda’s new passion plus

2) Hero Honda’s new passion plus embraces the contemporary black theme but now it

looks more like a glamour

3) Hero Honda’s new passion plus is available in six colours - sports red, Black &

sports red, Force silver, Vibrant blue, palace maroon and Black & Frost blue

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4) Hero Honda’s new passion plus features new graphics, body coloured rear grip, 5

spoke alloy wheels, all black engine and yellow black instrument panel like new

karizma

VEHICLES

Some like our looks; some go for speed and power. The truth is, our motorcycles

have it all – style, speed, performance, comfort and safety. So go ahead and make your

choice, whichever bike you go for, you are in for a great ride

Hero Honda Splendor Hero Honda Splendor is one of the largest selling motorcycle in the world. The bike

specializes in dual use motorcycles that are underpower but very fuel efficient. It is an

executive segment motorcycle specially made for the office goers

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Company Stroke Maximum Power Displacement

Hero Honda Motors

Ltd.4-Stroke, air cooled 7.1 bhp/ 8500 rpm 97.2 cc

Technical Specifications

Dimension & weight

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Wheelbase 1230 mm

Ground Clearance 159 mm

Kerb weight 100.3kg

Fuel Tank Capacity 10.5 litres

Engine

Type 4 - Stroke, air cooled

No. of cylinders 1


Electrical 12V-2.5AH

Transmission

No. of Gears 4 - speed

Performance

Maximum Power 7.1bhp/8500rpm

Start Kick start

Suspension

Front Telescopic hydraulic fork

Rear Hydraulic spring loaded type with both side action.

Tyre

Tyre (front) 2.75 x 18-4 PR Tyre (rear) 2.75 x 18-6 PR

Brakes

Type of brake (front)Drum type (130 mm Diameter)Optional: Disc type (240 mm Diamter)

Type of brake (rear) Drum type (110 mm Diameter)

45



Technical Specifications of Hero Honda CD-Dawn

The given table will give full information about the technical specification of the car like

the dimensions & weights, the engine, suspension, brakes, tyres and other such related

information.

Dimensions & Weights

Length 1980 mm

Width 720 mm

Height 1045 mm

Wheel base 1230 mm

Ground clearance 150 mmKerb Weight 108 kg


Engine

Type Air - Cooled , OHC


No. of cylinders Single cylinder


Electrical 12 V, 2.5 AhBore x stroke 50.0 mm x 49.5 mm

No. of Gears 4 - speed constant mesh

Clutch Multiplate, wet

Suspension

Front Suspension Telescopic hydraulic shock absorber

Rear Suspension Swing arm with hydraulic shock absorber

Brakes

Front Brake Drum brakes, 110 mmRear Brake Drum brakes, 110 mm

Tyres

Front Tyre Size 2.75 x 18-4 PR Size

Rear Tyre Size 2.75 x 18-6 PR Size

Performance

47



Maximum Power 7.4 PS @ 8000rpm

Max. Torque 0.79 Kg-m @ 5000 rpm

Start Kick Start

Hero Honda CD Deluxe Jiyo Deluxe... Chalao Deluxe

The Hero Honda CD Deluxe is a 100 cc bike with a new front bikini fairing and graphics.

The bike comes in style with a halogen-equipped MFR headlight. It has the same frame

and engine as of earlier CD 100 series, so one can expect it to be well-built and reliable.

The wheelbase of the bike is 1230 mm and the fuel tank has the capacity of 10.5 litres.


Hero Honda MotorsLtd.

4-Stroke OHC 5.44 kw (7.4 PS) at 8000 rpm97.2 cc

Technical

Specifications


Length 1970 mm

Width 720 mm

Height 1045 mm

Wheel base 1230 mm

Ground clearance 159 mm

Kerb Weight 108 kg

48







Engine



No. of cylinders Single cylinder


Electrical 12V, 35/ 35 Watt AC

Bore x stroke 50.0 mm x 49.5 mm

No. of Gears 4 - speed constant mesh

Clutch Multi Plate Wet Type

Suspension

Front Suspension Telescopic hydraulic fork

Rear Suspension Swing Arm with Hydraulic Shock Absorbers

Brakes

Front Brake Drums brakes, Internal Expanding Type - 130 mm Dia

Rear Brake Drums brakes, Internal Expanding Type - 110 mm Dia

Tyres

Front Tyre Size 2.75

Rear Tyre Size 2.75

Performance

Maximum Power 5.44 Kw / 7.4 PS @ 8000 rpmMax. Torque 0.79 Kgm @ 5000 rpm

Start Kick Sta

Hero Honda Glamour Live The G Life

Hero Honda Glamour has been set in the premium segment by the company. The bikecomes in 125cc with a curvaceous and new fairing design look. The engine of Glamour is

developed by Japanese partner Honda's research & development team. It has better

mileage and high power. The 'Quantum Core' engine and the flush-type lock on the fuel

tank of Glamour is a first-of-its-kind in the segment. It is sure to attract the young bikers.

49





4-Stroke 7.16 kW @ 7500 rpm 124.8 cc



Length 2017 mm

Width 770 mm

Height 1136 mm

Wheel base 1260 mm

Ground clearance 164 mm

Kerb Weight 118 kg

Fuel Tank Capacity 13 Litres

Engine


50







Ltd.

Technical Specifications of CBZ X-treme

Dimensions & Weight

Wheelbase (mm) 1325

Length (mm) 2080

Width (mm) 765

Height (mm) 1145

Ground Clearance (mm) 145

Weight (kgs) 141

Engine

Model Designation Air Cooled, 4 Stroke OHC

Starting Self Start/Kick Start

Idle Speed 1400 rpm

Displacement (cc) 149.2cc

Ignition AMI - Advanced Microprocessor Ignition System

Bore & Stroke 57.3 X 57.8 MM

Suspension

Front Telescopic Hydraulic Shock Absorber

Rear Swing arm with adjustable hydraulic shock absorber

Brakes

Front Disc Type (dia 240 mm)

Rear Drum Type, internal expanding shoe type

52





Tyres

Front 2.75 X 18" 42 P (Alloy)

Rear 100/90 x 18 - 56 P (Alloy)

Fuel Tank 12.3 Lts.

Performance

Max. Horsepower (ps/rpm) 10.6 KW(14.4 PS) @ 8,500 RPM

Max. Torque (kg m/rpm) 12.80 NM @ 6,500 RPM

Hero Honda Achiever

The Hero Honda Achiever from Hero Honda Motors Ltd. comes with twin rear

shocks and apparent air-skoops in the front below the fuel tank. It is built on 1290 mm

wheelbase. The kick-start version weighs only 139 kg. The fuel tank of the bike has a

capacity of 12.5 litres with usable reserve of 2.3 litres. The higher reserve capacity makes

Achiever rural-friendly because of lack of petrol pumps in these areas.

53








4-Stroke Air Cooled 10 kw (13.4bhp) 149.1cc


Engine 4 Strok Air Cooled

Displacement 149.1cc

Maximum Power 10 kw (13.4bhp)

Gears 5 gears

Frame Diamond Cradle

Tyre Size (Front) 2.75 X 18 - 42 P / 4 PR

Tyre Size (Rear) 3.00 X 18 - 52 P / 6 PR

Headlight 35W / 35 W Halogen Bulb

Top Speed 101 kmph

Acceleration 0-60 in (5 seconds)

Kerb Weight 134 kg

Hero Honda Karizma

Jet Set Go...

54







Hero Honda Karizma was the first real sports bike in India. The bike addresses to those

who have a passion for speed and styling and head-turning looks. It has 17 ps power

thrust and picks up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and

styling. Disc breaks and Mag wheels makes Karizma the safest jet on the road.



4-Stroke 16.8 bhp @ 7000 rpm 223 cc


Dimension & Weight



Overall Width 755 mm

Wheelbase 1355 mmGround Clearance 150 mm

Kerb weight 150 kg

Fuel Tank Capacity 15 litres

Engine

Type OHC, Air Cooled

55








No. of cylinders Single Cylinder

Displacement 223cc

Electrical 12 V, 7.0 Ah

Transmission

No. of Gears 5 speed

Clutch Multi-plate wet type

Performance

Maximum Power 16.8bhp @ 7000rpm

Max. Torque -

Start Kick / Electric

Suspensions

Front Telescopic Hydraulic Shock Absorbers

Rear Swing arm with 5 step adjustable type hydraulic shock absorber

Brakes

Front Disc Brakes, 276 mm diameter

Rear Internal Expanding Shoe, 130 mm

Tyres

Front 2.75 x 18” - 42 P

Rear 100 / 90 x 18” - 56 P

Hero Honda Hunk Because Muscles Matter

Hero Honda Motors Ltd. (HHML), India's leading two wheeler manufacturer, has

launched its new offering as Hunk in the 150 cc segment. This new bike is the fourth

launch in the premium segment after 156 cc CBZ Xtreme, 150 cc Achiever and 225 cc

Karizma. Hero Honda Hunk carries robust looks and muscular styling with big tank

shrouds, 5 spoke black alloy wheels, telescopic fork suspension and new GRS (Gas

Reservoir Suspension) at rear. Hunk is powered with 150cc engine that generates 14.4Ps

at 8500rpm of power and 12.8Nm of Torque.

Hero Honda has launched the 150 cc Hunk in two variants of kick start and self start with

the price tag of Rs. 55,000 and 57,000 respectively. The all new Hunk is available in four

56






colours - black, blue, red and silver.

Company Name Segment Displacement Maximum Power

Hero Honda Motors Ltd. (HHML) 150 cc 149.2 c.c 14.4 ps @ 8500 rpm

Technical Specifications of Hero Honda Hunk

Dimensions & Weight

Length (mm) 2080

Width (mm) 765

Height (mm) 1095

Wheelbase (mm) 1325Kerb Weight (kgs) 145

Ground Clearance (mm) 145

Engine

Model Designation Air Cooled, 4 - Stroke Single Cylinder OHC

Starting Self Start/Kick Start

57





Displacement (cc) 149.2

Ignition Advanced Microprocessor Ignition System (AMI)

Bore & Stroke 57.3 X 57.8 mm

Suspension

Front Telescopic Hydraulic Shock Absorbers

Rear 5 Step Adjustable Gas Reservoir Suspension - GRS

Brakes

Type Disc: 240 mm Dia Disc - Non Asbestos Type

Rear Internal Expanding Shoe Type (130 mm), Non AsbestosType.

Tyres

Front 2.75 X 18 42P

Rear 100/90 X 18 - 56P (With Tuff-up Tube)

Fuel Tank 12.4 Litre

Performance

Max. Horsepower (ps/rpm)

10.6 Kw (14.4 Ps ) @ 8500 rpm

Max. Torque (kg m/rpm) 12.80 N-m @ 6500 rpm

More 150 cc - 500 cc Bikes in India

DEALER PROFILE (PHOENIX MOTORS)DEALER PROFILE (PHOENIX MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX

MOTORS PVT LTD., is established on 21 st 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.

58



ADVERTISING STRATEGY OF PHOENIX MOTORS:

They are giving the Adds 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.

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 bikemaintenance 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.

SALES STRATEGY OF PHOENIX MOTORS:

Averagely they are selling 25 vehicles per day. PHOENIX motors PVT LTD. Is

the A.P s No.1 dealership in sales and other Activities? It is a QLAD (quality 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

59



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 Tyres and Tubes. In case of any defect in proprietary items, other

than the above two mentioned OEM’s the dealers must approach the branch office dealer

of the respective manufacturers. For AMCO batteries and Dunlop and Falcon Tires,Tubes claims will be accepted at our authorized dealership. As per the mutually agreed

terms and conditions between HERO HONDA and of these two OEM’s in case the claim

is not accepted for invalid reasons. Then the claim along with the refusal note from the

OEM can be sent to the warranty section at Gorgon plant after due to recommendation of

the area service engineer.

• If any of the six free services or subsequent paid services is not availed as per

the recommended schedule given in the owner’s manual.

• If HERO HONDA recommended engine oil is not used.

• To normal wear & tear components like bulbs, electric wiring, filters, spark

plug, clutch plates, brake shoes, fasteners, shims 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 to modification or fittings of accessories other

than ones recommended by HERO HONDA.

• 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.

60



• 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.

•

If there is any damage caused due to usage of improper oil, grease, non-genuine parts.

• For motorcycles which have been used for any commercial purpose as taxi

etc.

• For maintenance repaired due to misuse while driving or due to adulteration

of oil, petrol or due to bad road condition.

• For consumable oil, grease etc. used during free services or used during

warranty repairs.

• If any part of the vehicle is tampered repaired by unauthorized person or

workshops etc.

• For motorcycles not using accordance with the owner’s manual supplied with

each motorcycle by HERO HONDA.

All HERO HONDA motors are warranted for a period of 2 years or 30000 kilometers

from date of purchase, whichever is earlier. This is i.e., 1st April 2001. It is mandatory for

The customer to avail all free and paid services as per recommended schedule to be

eligible for the warranty benefits. That the customers have to be ensuring that each paid

service is availed with in 60 days from the date of previous service or as per therecommended schedule. If a defect is observed in any HERO HONDA motorcycle, Hero

Honda’s only obligation/liability is to repair or to replace those parts. Which are

considered to be the cause of malfunction free of charge of both labor and material, when

HERO HONDA acknowledges that such malfunction as not come out of misuse or

improper handling etc. such defective motor cycles should be brought to the nearest

61



HERO HONDA dealer or authorized service center by the owner for necessary

inspection and subsequent repairs.

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 customers to participated in this camp and also provide

certificate for the customers.

62



CHAPTER - IV

DATA ANALYSIS

Analyzed survey report1. Specify your Education:

a) Non-Graduate b) Graduation

c) PostGraduation d) Postgraduation

Professional

63



Qualification of the

customer

No of customers

Non-Graduate 16

Graduation 29

Post Graduate 35

Post graduation professional 20

0

5

10

15

20

25

30

35

N o o f c u s t o m e r s

Qualification of customers

Non-Graduate

Graduation

Post Graduate

Post graduation

professional

Interpretation: The above table shows out of 100 respondents, non- Graduates are

using 11%, Graduates are using 30%, Post-Graduates Are using 33%, and post graduate

professionals are using 26%. Most of the respondents are Post-graduates with 33%.

2. Specify your Occupation:

a) Student b) Employee c) Self Employee

Occupation of the customer No of customers

Student 34Employee 42

Self Employee 24

64



37

32

22

9

0

5

10

15

20

25

30

35

40

N o . o f c u s t o m e r s

Income level of customers

5000-10,000

10,000-15,000

15,000-20,000

20,000above

Interpretation: This question is meant to know the income level and economic status

of the customers who are purchasing the Hero Honda, From the analysis of the above

data we come to know that majority of the customers lay between 5,000-10,000

earning income group.

4. Could you let me know when did your purchase your bike (herohonda)

a) < 6months b) 6-1years

c) 1-2years d) > 2years

Time period No. of

customers

Below 6 months 25

6-1 years 22

1-2 years 30

Above 2 years 23

66



25

22

30

23

0

5

10

15

20

25

30


time period

Below 6 months 6-1 years 1-2 years Above 2 years

Interpretation: From the above analysis we come to know that most of the customers

have purchased the Herohonda bike before 1-2 years. From this we can know how well

the promotional strategies from the past 1year are.

5. Do you own any other bike other than Hero Honda ?

a) yes

b) No

Customers reply No of customers

Yes 60

No 40

67



customer response

yes, 60

no, 40

yesno

Interpretation: The above table shows out of 100 Respondents, 60% respondents had

the bike before this bike and 40% respondents don’t had any bike before this bike. Most

of the respondents had the bike before this bike with 60%.

6. Which type the Two Wheeler do you possess ?

a) Moped b) Scooter c) Bike

Type of vehicle No. of customers

Moped 15

Scooter 20

bike 25

68



15

20

25

0

5

10

15

20

25

N o . o f c u s t o

m e r s

type of two wheeler

Moped Scooter bike

Interpretation: from the above analysis we come to know the customers earlier usage of

vehicle. Most of the customers used the bikes before purchasing this bike. More than

40% of the customers used to have only bikes earlier.

7. Would you tell me why you brought Hero Honda?

a) Technology b) Style, look

c) Mileage d) After sale services

e) Brand image f) comfort

Customer Opinion No. of customers

Technology 8

Style, look 14

69



Mileage 18

After sale service 3

Brand image 9

Comfort 8

8

14

18

3

98

0

5

10

15

20


customer preference

Technology

Style, look

Mileage

After sale

serviceBrand image

Comfort

Interpretation: This question is meant to know the customers preference and their likes

for shifting to Hero Honda.Most of the customers who are using the Hero Honda

preferred Hero Honda only because of its mileage.

8. What factors that influenced you while purchasing Hero Honda?

a) TV ads b) Paper ads

c) Friends d) Test Drive

Influencing factors No. of customers

TV ads 26

Paper ads 16

Friends 55

Test Drive 3

70



26

16

55

3

0

10

20

30

40

50

60

N o . o f c u

s t

influencing factors

TV ads Paper ads Friends Test Drive

Interpretation: This question is meant to know the source of awareness for customers

regarding the bike.Most of the customers of hero honda came to know about the bike

through friends and relatives.

9. While purchasing hero honda which other brands of bike did you consider?

a) Bajaj Pulsar b) TVS Apache

c) Honda Shine d) any other___________

Bike considered by customers No. of customers

Bajaj Pulsar 42

TVS Apache 12

Honda Shine 12

Any other 34

71



42

12 12

34

0

5

10

15

2025

30

35

40

45


name of the bike

Bajaj Pulsar

TVS Apache

Honda Shine

Any other

Interpretation: The tough competitors for the hero honda in the market are know from

the above question. Most of the customers considered Bajaj pulsar , while purchasing the

hero honda.

10. How do you rate the features of your bike?

Extremely

satisfied

Satisfied Some what

satisfied

Not satisfied

Style,look 22 64 10 4

Mileage 22 55 23 0

After sale

Services

20 48 17 15

72



Brand

image

32 61 7 0

Technology 15 62 12 11

0

10

20

30

40

50

60

70


style,look

mileage

aftersale

services

brand image

technology

Interpretation: From the above analysis we come to know that most of the customers

are satisfied with the features of the Hero Honda. And only a very few customersinformed that they are not satisfied with the features of the Hero Honda.

11. Did your choice of selection of the bike met as per your expectations?

a) Very Much b) To large extent

73



product performance

To Large

extent

18%

Very

Much

82%

Verymuch

To Large extent

Interpretation: We can know whether the customer is satisfied or not with the

performance of the bike from the above question. Majority of the customers i.e. more

Customers response No. of customers

Very Much 82

To Large extent 18

74



than 80% of the customers are very much satisfied with the performance of the Hero

Honda.

12. How would you rate your satisfaction about after sale services?

Extremely

satisfied

Satisfied Some what

satisfied

Not

satisfied

Politeness and Courtesy 26 65 8 1

Attention to answer Your

queries

33 55 9 3

Timeliness (i.e. repair to the

Bike were done very prompt)

20 54 20 6

Dependability (i.e. any query

and complaint regarding to

Repairs would be taken care

of)

15 53 23 9

26

33

20

15

65

5554 53

8

9

2023

13

69

0

10

20

30

40

50

60

70

N o . o f c u s t o m

e r s

extremely

satisfied

satisfie d some what

satisfied

not satisfied

Customers response

Politeness and Courtesy

Attention to answer Your

queries

Timeliness

Dependable

Interpretation: From the analysis we come to know that most of the customers are

satisfied with the various aspects of the after sale service. And only very few

customers infer that they are not satisfied with the aspects of after sale service.

75



13. How would you rate your overall satisfaction about after sales services?

a) Extremely satisfied b) Satisfied

c) Some what satisfied d) not satisfied

Customers response No. of customers

Extremely satisfied 28

Satisfied 60

Some what satisfied 9

Not satisfied 3

28

60

9

30

10

20

30

40

50

60

N o o f c u s t o m e r s

customer reaction

Extremely

satisfied

Satisfied

Some what

satisfied

Not satisfied

Interpretation: The service quality of the dealer is known from the question. Most of

the customers are satisfied with after sale service, only a very few customers infer that

they are not satisfied with the after sale service.

76



14. In your opinion how can dealer attract and satisfy the existing customer?

a) Gift offer (during special occassion)

b) Extend service period

c) Toll free number (for emergency)

d) Any other_______________

Offers No. of customers

Gift Offer (during special occassion) 38

Extend service period 42

Toll free number (for emergency) 15

Any other 5

Interpretation: Most of the customers expect for extension in the free service period

given by the dealer. From this question we come to know the most favorite offer

liked by the customers.

77



15. Would you like to suggest the Hero Honda Bike to others?

a)Yes

b) No

Customer response No. of customersYes 92

No 8

customer response

Yes, 92

No, 8

Yes

No

Interpretation: Most of the customers inform that they suggest the Her Honda bike

to their friends and relatives. From this we come to know how buzz marketing or

word of mouth helps in promoting the product in the market.

OBSERVATION AND FINDINGS

78



As a result of the research work and the subsequent interaction with the

consumers in the market an in-depth study report of motorcycle market was made. The

study reveals the exact position of motorcycle companies and response of consumers to

their perception tool. Market condition could be observed minutely and closely enabling

me to formulate my views and opinion about the market.

The major observations and findings:-

1. More than 45%of the respondents felt the ownership of Motor cycle as necessity,

while 30% of them felt it is as comfort. 10% of the respondents felt it is as luxury

and 15% of respondents felt it is as status.

2. 49%of the respondents were satisfied with the after sales service of Hero Honda,

while 44% felt it as good, 5%as bad and2% as excellent

3. 65%of the respondents felt that the price of Hero Honda as economical, while

04%of them felt it as expensive and 31% of them felt that the price as moderate.

4. When asked about the opinion on Hero Honda motorcycles advertisement 31%

have not seen the advertisement, while69% have seen the advertisement and gave

their opinion as 17% as excellent, 48%as very good and 30%as ok.

5. There are many criteria’s considered by customers while choosing the motorcycle

company or particular model. Here I found, 38%customers considered mileage

factor while selecting any variety.

6. Customers have right to expect from company. 32%customers expect long service

from the company.

7. With out proper motivation no one will buy the particular motor cycle it is found

that 23% customers affected by work of mouth, 16% by sales man, 54% byreliability and 07% by dealers.

8. It is observed that Hero Honda is a market leader in motorcycle industry.

79



CHAPTER - V

80



SUGGESTIONS

Target segment for bikes should be below the age group of 25-35 years.

Please upgrade the 100cc Passion plus bike to 125cc bike and also introduce the

bike in to market with a self starter engine.

At high speed body of the Passion plus are shaking.

Maintenance is heavy.

Gear problem exists in Splendor.

In Passion plus problem is with head light focus.

Pick up should be increased to all bikes, especially in Passion plus.

Weight of new Passion plus 2008 is very low, it should be increased.

Compared to the old Passion plus model the new models labels and colors are not

good. It must be rectified.

The new Passion plus launched into the market is of old style and old model, so

please upgrade the bike with new look and style.

The company throughout its R&D needs to improve fuel efficiency of all bikes.

Road show, participations in Industrial exhibitions and sales campaigns need to

be conducted regularly.

The quality of the new Passion plus has drastically reduced when compared to the

old Passion plus, so please try to rectify it.

Most of the customers are asking for extended service period.

81



To retain the old customers, the company has to give them surprise gifts on

special occasions like birthdays and festivals etc.,

For servicing:

Mechanics should call back the customers if they find any problems in the vehicle

during servicing.

At least one experienced mechanic should be appointed in order to cope up with

mileage problem.

Number of mechanics should be increased.

The service men are using the customer’s bikes for their own purpose when the

customer gives the bikes to the service. This must not be done by them,

management should take proper steps to avoid this kind of actions.

The service men at the authorized dealers are unable to take care of the bike and

they are unable to resolve the queries and the problems told by the customers

regarding the bikes.

82



CONCLUSION

Market of Hero Honda is very wide. Lot customers have been satisfying

with the different models of bikes and their good service. Customers satisfied with the

price of hero Honda bike which will suitable for their economical levels Company should

aim at advertising not only to capture the market but also strive in retaining such captured

market. The company should take survey for the benefit of the company. It was found

even though company performing well; there is lot of market to be captured.

Hero Honda got a brand name in the customers and in the market also Thus

Business world is trying to get closer to the customers by adapting a key survival

strategy. “Don’t just sell, but satisfy: Don’t just satisfy but pamper don’t just pamper, but

charm your customers.

83



ANNEXURE

84



QUESTIONNAIRE

Respondent profile:

a) name :

b) Address:

c) Phone No:

Gender: a) male b) female

1. Specify your Education:

a) Non-Graduate b) Graduation

c) PostGraduation d) Postgraduation professional

2. Specify your Occupation:

a) Student b) Employee c) Self Employee

3. Specify your Income level:

a) 5000-10,000 b) 10,000-15,000

c) 15,000-20,000 d) 20,000above

4. Could you let me know when did you purchase your bike (Hero Honda)

a) Below 6months b) 6-1years

c) 1-2years d) above 2years

85



5. Do you own any other bike other than Hero Honda?

a) Yes b) No If no go to 11Q

6. Which Type of Two wheeler do you possess?

a) Moped b) Scooter c) Bike

7. Could you please tell me why you brought Hero Honda?

a) Technology b) Style, look c) Mileage

8. What are the factors that influence you while purchasing Hero Honda?

a) TV ads b) Paper ads

c) Friends d) any other_________

9. While purchasing Hero Honda which other brands of bike did you consider?

a) Bajaj Pulsar b) TVS Apache

c) Honda Shine d) any other___________

10. How do you rate the features of your bike?

Extremely

satisfied

Satisfied Some what

satisfied

Not satisfied

Style,look

Mileage

After sale

Services

Brand image

Technology

11. Is your selected product (Hero Honda) performance met your expectations?

86



a) Yes b) No

12. How would you rate your satisfaction about after sale services?

Extremely

satisfied

Satisfied Some what

satisfied

Not

satisfied

Politeness and Courtesy

Attention to answer Your queries

Timeliness (i.e. repair to the Bike

were done very prompt)

Dependability (i.e. any query and

complaint regarding to Repairs

would be taken care of)

13. How would you rate your overall satisfaction about after sales services?

a) Extrmely satisfied b) Satisfied

c) Some what satisfied d) not satisfied

14. In your opinion how can dealer attract and satisfy him existing customer?

e) Surprise gift (during special occassion)

f) Extend free service period time

g) Toll free number (for emergency)

h) Any other_______________

15. Would you like to suggest the Hero Honda bike to others?

a) Yes b) No

87



BIBLIOGRAPHY:BIBLIOGRAPHY:

REFERENCE BOOKS:

PRINCIPLES OF MARKETING KOTLER, ARMSTRONG

MARKETING RESEARCH G.C.BERRY

WEBSITES:

www.herohonda.com

www.phoenixindia.com

www.wikipedia.com

AUTOMAGAZINES:

OVERDRIVE


http://www.phoenixindia.com/

http://www.wikipedia.com/


http://www.phoenixindia.com/

http://www.wikipedia.com/