hero motors customer satisfsction

A study on Customer Satisfaction on Hero MotoCorp

1.1 HISTORY OF MOTORCYCLES

The first commercial design for a self-propelled bicycle was a three-wheel

design called the Butler Petrol Cycle, conceived of Edward Butler in England in

1884. He exhibited his plans for the vehicle at the Stanley Cycle Show in

London in 1884. The vehicle was built by the merry weather Fire Engine

Company in Greenwich, in 1888.

The Butler Petrol Cycle was a three-wheeled vehicle, with the rear wheel

directly driven by a 5/8hp (466W) 600 cc (40 in3; 2¼×5-inch {57×127-mm})

flat twin four stroke engine (with magneto ignition replaced by coil and battery)

equipped with rotary valves and a float-fed carburettor (five years before

Maybach) and Ackermann steering, all of which were state of the art at the time.

Starting was by compressed air. The engine was liquid-cooled, with a radiator

over the rear driving wheel. Speed was controlled by means of a throttle valve

lever. No braking system was fitted; the vehicle was stopped by raising and

lowering the rear driving wheel using a foot-operated lever; the weight of the

machine was then borne by two small castor wheels. The driver was seated

between the front wheels. It wasn't, however, a success, as Butler failed to find

sufficient financial backing.

Another early internal combustion, petroleum fuelled motorcycle was the

Daimler Reitwagen. It was designed and built by the German inventors Gottlieb

Daimler and Wilhelm Maybach in Bad Cannstatt, Germany in 1885. This

vehicle was unlike either the safety bicycles or the boneshaker bicycles of the

era in that it had zero degrees of steering axis angle and no fork offset, and thus

did not use the principles of bicycle and motorcycle dynamics developed nearly

70 years earlier. Instead, it relied on two outrigger wheels to remain upright

while turning. The inventors called their invention the Reitwagen ("riding car").

It was designed as an expedient test bed for their new engine, rather than a true

prototype vehicle.

1 | P a g e


Many authorities who exclude steam powered, electric or diesel two-wheelers

from the definition of a motorcycle, credit the Daimler Reitwagen as the world's

first motorcycle.

If a two-wheeled vehicle with steam propulsion is considered a motorcycle, then

the first was the French Michaux-Perreaux steam velocipede of 1868. This was

followed by the American Roper steam velocipede of 1869, built by Sylvester

H. Roper Roxbury, Massachusetts. Roper demonstrated his machine at fairs and

circuses in the eastern U.S. in 1867, and built a total of 10 examples.

1.2 SUMMARY OF EARLY INVENTIONS

Year Vehicle Number

of wheels

Inventor Engine

type

Notes

2 | P a g e


1867–

1868

Michaux-

Perreaux

steam

velocipede

2

Pierre

Michaux

Louis-

Guillaume

Perreaux

Steam One made

1867–

1868

Roper steam

velocipede2

Sylvester

RoperSteam Ten made

1884Butler Petrol

Cycle

3 (plus 2

castors)

Edward

Butler

Petroleum

internal-

combustion

1885 Reitwagen

2 (plus 2

outriggers

)

Gottlieb

Daimler

Wilhelm

Maybach

Petroleum

internal-

combustion

One made

1894

Hildebrand

& Wolf

Müller

2

Heinrich

Hidebrand

Wilhelm

Hidebrand

Alois Wolf

Müller

Petroleum

internal-

combustion

Modern

configuration

First machine

to be called

"motorcycle"

1.3 GROWTH AND EVOLUTION

First motorcycle companies

Diagram of 1894 Hildebrand

& Wolf Müller.

3 | P a g e

http://en.wikipedia.org/wiki/File:1894_Hildebrand_&_Wolfm%C3%BCller_diagram.png


In 1894, Hildebrand & Wolf Müller became the first series production

motorcycle, and the first to be called a motorcycle (German: Motorrad).

Excelsior Motor Company, originally a bicycle manufacturing company based

in Coventry, England, began production of their first motorcycle model in 1896.

The first production motorcycle in the US was the Orient-Aster, built by

Charles Metz in 1898 at his factory in Waltham, Massachusetts.

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. Many of the nineteenth century

inventors who worked on early motorcycles often moved on to other inventions.

Daimler and Roper, for example, both went on to develop automobiles.

At the turn of the century the first major mass-production firms were set up. In

1898, Triumph Motorcycles in England began producing motorbikes, and by

1903 it was producing over 500 bikes. Other British firms were Royal Enfield,

Norton and Birmingham Small Arms Company who began motorbike

production in 1899, 1902 and 1910, respectively. Indian began production in

1901 and Harley Davidson was established two years later.

First World War

Triumph Motorcycles Model H,

mass-produced for the war effort

and notable for its reliability

During the First World War,

motorbike production was greatly

ramped up for the war effort to

supply effective communications

with front line troops.

4 | P a g e


Messengers on horses were replaced with despatch riders on motorcycles

carrying messages, performing reconnaissance personnel and acting as a

military police. American company Harley-Davidson was devoting over 50% of

its factory output toward military contract by the end of the war. The British

company Triumph Motorcycles sold more than 30,000 of its Triumph Type H

model to allied forces during the war. With the rear wheel driven by a belt, the

Model H was fitted with a 499 cc (30.5 cu in) air-cooled four-stroke single-

cylinder engine. It was also the first Triumph without pedals.

Triumph Motorcycles Model H, mass-produced for the war effort and notable

for its reliability During the First World War, motorbike production was greatly

ramped up for the war effort to supply effective communications with front line

troops. Messengers on horses were replaced with despatch riders on

motorcycles carrying messages, performing reconnaissance personnel and

acting as a military police. American company Harley-Davidson was devoting

over 50% of its factory output toward military contract by the end of the war.

The British company Triumph Motorcycles sold more than 30,000 of its

Triumph Type H model to allied forces during the war.

Post war

By 1920, Harley-Davidson

was the largest manufacturer

with their motorcycles being

sold by dealers in 67

countries. By the late 1920s or

early 1930s, DKW in

Germany took over as the

largest manufacturer. NSU

Sportmax streamlined

motorcycle, 250 cc class winner of the1955 Grand Prix season

5 | P a g e


After World War II, the Birmingham Small Arms Company became the largest

producer of motorcycles in the world, producing up to 75,000 bikes per year in

the 1950s. The German company NSU held the position of the largest

manufacturer from 1955 until the 1970s.

In the 1950s, streamlining began to play an increasing part in the development

of racing motorcycles and the "dustbin fairing" held out the possibility of

radical changes to motorcycle design. NSU and Moto Guzzi were in the

vanguard of this development, both producing very radical designs well ahead

of their time. NSU produced the most advanced design, but after the deaths of

four NSU riders in the 1954–1956 seasons, they abandoned further development

and quit Grand Prix motorcycle racing.

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.

1.4 PROSPECTS FOR FUTURE

Since the first motorcycle was built, the two wheel transportation device has

had many sources of power, including the first steam powered machines. It was

not until World War II that gas powered motorcycles became common place.

Now the pentagon is developing a new military hybrid motorcycle that promises

to be fast, powerful and silent. By creating this stealth cycle, the government

has inadvertently pushed the envelope of alternative fuel motorcycles.

The Hybrid Electric

The motorcycle in development by the Defence Advanced Research Projects

Agency will have a hybrid diesel/electric engine. In stealth mode, the bike will

run on battery power and make little sound. When the driver needs more power

for speed, he can switch over to a special diesel fuel engine.

6 | P a g e


Air Powered With No Sails

Concept bikes are universally cool but often do not make it to mass production.

Trying to repair a concept vehicle, let alone finding inexpensive motorcycle

parts online, can be quite the task. That is why the air powered motorcycle

designed by Edwin Conan may be relegated to the cool but impractical file. The

machine, known as the Green Speed Air Powered Motorcycle, is the epitome of

green technology as it is powered by compressed air. The idea is to have solar

panels that can generate the energy to compress the ambient air and store it in

fiberglass tanks. The top speed is only limited by the pressure capacity of the

tank.

Water Power

Hydrogen cells use catalysed anodes to liberate an electron from the hydrogen

atom. This free electron is used to power an electric motor and the ionized atom

reacts with oxygen to form water. Hydrogen cells have become a hot topic for

green car manufacturers.

1.5 INDUSTRY PROFILE

The Indian two-wheeler contributes the largest volume amongst all the

segments in automobile industry. Though the segment can be broadly

categorized into 3 sub-segments viz. scooters, motorcycles and mopeds; some

categories introduced in the market are a combination of two or more segments

e.g. scooters and step-thru. The market primarily comprises five players in the

two-wheelers segment with the most of the companies having foreign

collaboration with well-known Japanese firms earlier. But most of the

companies are now planning 100% subsidiaries in India. And growth

anticipated is higher than the 16 percent achieved in the past 10 years

The automobiles sector is divided into four segments-two wheelers(mopeds,

scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger

7 | P a g e


cars, utility vehicles, multi-purpose vehicles), commercial vehicles (light and

medium-heavy vehicles), and three wheelers (passenger carriers and good

carriers).

The industry is one of the key drivers of economic growth of the nation. Since

the globalization of the sector in 1991 and the subsequent opening up of 100

percent FDI through automatic route, Indian automobile sector has come a long

way. Today, almost every global auto major has set up facilities in the country.

The world standings for the Indian automobile sector, as per the Confederation

of Indian Industry, are as follows:

Largest three-wheeler market

Second largest tow-wheeler market

Tenth largest passenger car market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment

The sector has shown a sluggish growth of 12 percent in 2012. The trend is

likely to stay with a 10 percent growth outlined for 2013 citing high ownership

costs (fuel costs, cost of registration, excise duty, road tax) and slow rural

income growth. Solid but cautious growth is expected over the next few years.

However, from a long-term perspective, rising incomes, improved affordability

and untapped markets present promising opportunities for automobile

manufactures in India. According to Macquarie equities research, sale of

passenger vehicles is expected to double in the next four years

Two Wheeler & its role in Indian Context:

8 | P a g e


As the cities grow & suburbs expand, transportation needs becoming more &

more acute, with mounting pressure on its public transportation for which two

wheelers are ideal.

The two-wheeler Industry today has a significant role in the Indian economy,

with an annual turnover of Rs. 9000 crores and compounded average growth of

10%. In recent years, it is of the few industrial sectors in the growth phase

today considers personal transportation as one of the basic needs.

The two-wheeler industry basically comprises mopeds, scooters, scooters and

motorcycles. Mopeds are basic entry-level products aimed at lower/middle

income groups, offering company. This category dominated by TVS SUZUKI,

which has a market share of 50% today. The other major players in this segment

include KINETIC ENGG., HERO MOTORS and BAJAJ AUTO.

Scooters, which found largest segment in the industry (37 percent) is dominated

by BAJAJ AUTO. It is however facing stiff competition from LML, which

offers better style and technology to the Indian customers. However, dominance

of this category has been declining because of shift in the customer preferences.

Major part of the growth in the two-wheeler industry has come from motorcycle

especially, the Indo-Japanese 100cc motorcycles, which are considered, fuel

efficient, reliable and suited for rough roads.

Scooters also growing at a fast phase and are being increasingly perceived as a

better option providing convenience and motor style, by urban customers. In

this category, TVS Scooty holds a dominant market share.

With sales of over three million vehicles, India is the second largest two-

wheeler market in the world. Vehicle has become a necessity for day-to-day

busy life, with the accelerated industrial and business activity in a liberalized

9 | P a g e


environment. However, given the limited purchasing power and to high cost of

cars, majority of the middle class vehicle users prefer two wheelers.

With sales of over million vehicles, India is the second largest two-wheelers

market in the world. China is the market leader with around 51 percent of the

Asia Market, India, Thailand; Indonesia & Taiwan are the other key markets for

two-wheelers with market share of 19 percent, 10 percent, 9 percent and 5

percent respectively.

In the last four to five years, the two-wheeler market has witnessed a market

shift towards motorcycles at the expense of scooters. In the rural areas,

consumers have come to prefer sturdier bikes to withstand the bad road

conditions. In the process the share of motorcycle segment has grown from

48% to 58%, the share of scooters declined drastically from 33% to 25%, while

that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The

Euro emission norms effective from April 2000 led to the existing players in the

two-stroke segment to install catalytic converters. 4-stroke motorcycles are

now replacing all the new models. Excise duty on motorcycles has been

reduced from 32% to 24%, resulting in price reduction, which has aided in

propelling the demand for motorcycles. Fierce competition has also forced

players to cut prices of certain models.

Competition has intensified over the last couple of years altering the dynamics

in the motorcycle segment with various companies planning to cash in on this

spurt in demand by calling off their JVs like Suzuki Motors planning to break

off with TVS. Recently, Honda Corporation of Japan announced its intentions

to set up a 100% subsidiary to manufacture scooters and motorcycles. Other

players in the two-wheeler industry include Bajaj Auto Ltd., Kinetic Motor

Co.Ltd. LML and Escorts Yamaha. Low interest regime has helped in reducing

10 | P a g e


cost of loans, which will help in boosting sales of 2-wheelers, since 80% of the

two-wheelers are credit –stimulated.

The two-wheeler industry is passing through a critical but interesting phase. For

many years, it was growing continuously but the turning point came in 1996=97

when it started slowing down. The impact was really (MI) felt in the next year

when the overall growth was hardly two percent. This was also possible only

because the motorcycle segment showed a healthy growth of 15 percent. The

scooter segment went down by 3 percent and mopeds by 6 percent.

Another highlight is that the motorcycle sales have surpassed the scooter sales

for the first time in 1998-99. Until then, motorcycle sales were always trailing

behind.

The net result is that motorcycles now account for 41 percent of the two-

wheeler market, while scooters account for 36 percent. Mopeds have been able

to hold their own at about 21 percent.

1.6 GROWTH OF MOTORCYCLES

It is therefore not surprising that every major player is trying to get into the

Motorcycle market to have a piece of the cake.

Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by

Bajaj with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13

percent. Now LML and Kinetic have announced their plans to manufacture

motorcycles, which are likely to come in the market by next year. The battle is

expected to be fierce but the consumer will be the greater beneficiary.

The growth in motorcycles is slowly losing its hold. It is considered a family

vehicle but perhaps there is competition from the second hand car markets

11 | P a g e


where prices have fallen down rapidly. A1992 Maruti 800 is now available for

just 70,000.

The scooter manufactures have to watch this phenomenon and bring our many

new product variants in the right price slots to sustain their shares in the market.

The moped market has been steady with an average growth of 3 percent. It is

dominated by TVS which holds 48 percent market share followed by Kinetic

and Majestic Auto at 23 percent and 18 percent respectively.

In each segment, there is a wide gap between the first two contenders, which

makes their products positioning and marketing strategies most interesting. The

two wheelers market seems to be maturing. There are the usual their

conventional segment of scooters, mopeds and motorcycles. Two new segments

are being created.

1.7 MARKETING

Marketing is based on thinking about the business in terms of customer

needs and their satisfaction. Marketing differs from selling because (in

the words of Harvard Business School's retired professor of marketing Theodore

C. Levitt) "Selling concerns itself with the tricks and techniques of getting

people to exchange their cash for your product. It is not concerned with

the values that the exchange is all about. And it does not, as marketing

invariable does, view the entire business process as consisting of a tightly

integrated effort to discover, create, arouse and satisfy customer needs." In other

words, marketing has less to do with getting customers to pay for your product

as it does developing a demand for that product and fulfilling the customer's

needs.

12 | P a g e

http://www.businessdictionary.com/definition/demand.html

http://www.businessdictionary.com/definition/developer.html

http://www.businessdictionary.com/definition/pay.html

http://www.businessdictionary.com/definition/need.html

http://www.businessdictionary.com/definition/create.html

http://www.businessdictionary.com/definition/business-process.html

http://www.businessdictionary.com/definition/values.html

http://www.businessdictionary.com/definition/cash.html

http://www.businessdictionary.com/definition/exchange.html

http://www.businessdictionary.com/definition/technique.html

http://www.businessdictionary.com/definition/concern.html

http://www.businessdictionary.com/definition/retired.html

http://www.businessdictionary.com/definition/Harvard-Business-School.html

http://www.businessdictionary.com/definition/word.html

http://www.businessdictionary.com/definition/seller.html

http://www.businessdictionary.com/definition/satisfaction.html

http://www.businessdictionary.com/definition/customer-needs.html

http://www.businessdictionary.com/definition/customer-needs.html

http://www.businessdictionary.com/definition/term.html

http://www.businessdictionary.com/definition/business.html

http://www.businessdictionary.com/definition/marketer.html


1.8 CUSTOMER

A customer is usually used to refer to a current potential buyer or user of the

products of an individual organization, called the supplier, seller or vendor. This

is typically through purchasing renting goods or services. However, in certain

contexts, the term 'customer' also includes by extension any entity that Uses or

experiences the service of another.

A customer may also be a viewer of the product or service that is being sold

despite deciding not to buy them. The general distinction between a customer

and a client is that a customer purchases product whereas a client purchase

service.

Types of customer

Customers can be of following types:

1. Loyal Customers- These types of customers are less in numbers but promote

more sales and profit as compared to other customers as these are the ones

which are completely satisfied. These customers revisit the organization over

times hence it is crucial to interact and keep in touch with them on a regular

basis and invest much time and effort with them. Loyal customers want

individual attention and that demands polite and respectful responses from

supplier.

2. Discount Customers- Discount customers are also frequent visitors but they

are only a part of business when offered with discounts on regular products

13 | P a g e


and brands or they buy only low cost products. More is the discount the more

they tend towards buying. These customers are mostly related to small

industries or the industries that focus on low or marginal investments on

products. Focus on these types of customers is also important as they also

promote distinguished part of profit into business.

3. Impulsive Customers- These customers are difficult to convince as they want

to do the business in urge or caprice. They don’t have any specific item into

their product list but urge to buy what they find good and productive at that

point of time. Handling these customers is a challenge as they are not

particularly looking for a product and want the supplier to display all the

useful products they have in their tally in front of them so that they can buy

what they like from that display. If impulsive customers are treated

accordingly then there is high probability that these customers could be a

responsible for high percentage of selling.

4. Need Based Customers- These customers are product specific and only tend

to buy items only to which they are habitual or have a specific need for them.

These are frequent customers but do not become a part of buying most of the

times so it is difficult to satisfy them. These customers should be handled

positively by showing them ways and reasons to switch to other similar

products and brands and initiating them to buy these. These customers could

possibly be lost if not tackled efficiently with positive interaction.

5. Wandering Customers- These are the least profitable customers as

sometimes they themselves are not sure what to buy. These customers are

normally new in industry and most of the times visit suppliers only for

confirming their needs on products. They investigate features of most

prominent products in the market but do not buy any of those or show least

interest in buying. To grab such customers they should be properly informed

14 | P a g e


about the various positive features of the products so that they develop a sense

of interest.

1.9 MEANING OF CUSTOMER SATISFICATION

Customer satisfaction is a business term, is a measure of how products and

services supplied by a company meet or surpass customer expectation. It is seen

as a key performance indicator within business and part of the four prospective

of balanced score card.

In a competitive market place were businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy customer satisfaction drives successful private

sector business.

15 | P a g e


High performing businesses have developed principles and strategies for

achieving customer satisfaction. This paper presents a framework or set of ideas

for using customer satisfaction principles and strategies to improve the quality

responsiveness, and possibility of public sector privately provided services in

vulnerable communities

The framework suggested that resident who live in tough neighbourhoods can

be supported through customer satisfaction strategies to become empowered

individuals who informed perspectives influence decisions about what, how,

when, and where services are available to them.

Customer satisfaction is the customer’s response to the evaluation of the

perceived discrepancy between prior expectation and the actual performance of

the product as perceived after its consumption.

DEFINITION

Cocotte, woodruff and Jenkins (1987) define customer satisfaction as

"conceptualized as a feeling developed from an evaluation of the experience."

HERE, the timing of satisfaction response is driving consumption.

BUT there is general agreement with kotler (2003) that "customer satisfaction is

a person's feeling of pleasure or disappointment resulting from comparing a

products perceived performance in relation to his or her expectation." In short

customer satisfaction is "The provision of goods or services which fulfil the

customer expectation in terms of quality and service, in relation to price paid."

16 | P a g e


IMPORTANCE OF CUSTOMER SATISFACTION

It costs at least 7 times more to source a new customer than it does to retain

existing one a 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied'

customer will tell 14-15 people.

Companies can boost profits anywhere from 25% to 125% by retaining a

mere 5% more of their exciting customers.

Totally satisfied customers were 6 times more likely to use that services

and commend it than ' satisfied' customers.

Customers who have a bad experience with you and do not complain are

only 37% likely to still do business with you.

Customers who have an opportunity to complain and the complaint is

achieved are 95% likely to still do business with you.

1.10 CUSTOMER SATISFACTION MODEL

The customer satisfaction model is a micro level framework it links extended Ps

(people & performance), and reflects the impacts of the traditional Ps (product,

price, place and promotion).

WHILE conceptually simple, the frame work captures the essence of marketing:

17 | P a g e

CUSTOMER SATISFACTION MODEL


(a) Generate customer satisfaction by meeting, or better yet exceeding, customer

requirements and expectation, i.e. delivering superior relative perceived value.

(b) A mass satisfied (and profitable) customer into substantial share of the

relevant served market.

(c) Leveraging the market share into high profitability via scale of economies.

FACTORS OF CUSTOMER SATISFACTION

1. Service of quality

2. reliability of service

3. knowledge of the staff

4. Being kept informed of progress

5. The way service kept its promises

6. The way the service handled any problem Friendliness of staff

7. How sympathetic staff were to your needs

8. Speed of enquiries

9. Number of time had to contact the service.

18 | P a g e

CUSTOMER SATISFACTIO

N

MARKET SHARE PROFITS


1.11 Ways to measure Customer satisfaction

1. Direct Methods: Directly contacting customers and getting their valuable

feedback is very important.

Following are some of the ways by which customers could be

directly tabbed:

a) Getting customer feedback through third party agencies.

b) Direct marketing, in-house call centres, complaint handling department

could be treated as first point of contact for getting customer feedback.

These feedbacks are compiled to analyse customers’ perception.

c) Getting customer feedback through face to face conversation or meeting.

d) Feedback through complaint or appreciation letter.

e. Direct customer feedback through surveys and questionnaires.

2. Indirect Method: The major drawback of direct methods is that it turns out

to be very costly and requires a lot of pre compiled preparations to implement.

For getting the valuable feedbacks the supplier totally depends on the customer

due to which they loses options and chances to take corrective measure at

correct time. Hence there are other following indirect methods of getting

feedback regarding customer satisfaction:

a. Customer Complaints: Customer’s complaints are the issues and problems

reported by the customer to supplier with regards to any specific product or

related service. These complaints can be classified under different segments

according to the severity and department. If the complaints under a particular

segment go high in a specific period of time then the performance of the

organization is degrading in that specific area or segment. But if the complaints

19 | P a g e


diminish in a specific period of time then that means the organization is

performing well and customer satisfaction level is also higher.

b. Customer Loyalty: It is necessarily required for an organization to interact

and communicate with customers on a regular basis to increase customer

loyalty. In these interactions and communications it is required to learn and

determine all individual customer needs and respond accordingly. A customer is

said to be loyal if he revisits supplier on regular basis for purchases. These loyal

customers are the satisfied ones and hence they are bounded with a relationship

with the supplier. Hence by obtaining the customer loyalty index, suppliers can

indirectly measure customer satisfaction.

2.1 TITLE OF STUDY

“A study on customer satisfaction with reference to Hero MotoCorp”

2.2 STATEMENT OF PROBLEM

The two wheeler segment is a very competitive market that has become for the

company to have effective customer satisfaction. The project has described the

effectiveness of customer satisfaction at satyom hero in view of the tough

competition the company has to face in the market. The method of customer

satisfaction of the company and its effectiveness is creating awareness among

people to identify and analysis the customer needs.

20 | P a g e


Methodology may be a description of process, or may be expanded to include a

philosophy coherent collection of theories, concepts or ideas as they relate to a

particular discipline or field of inquiry.

2.3 OBJECTIVE OF STUDY

The following are the objectives of the study

1. To understand the customer behavior towards purchase of 2 wheeler.

2. To understand the level of customer satisfaction about the Hero bikes.

3. To study the customer attitudes towards various brands of hero Motor

Cop.

4. To suggest suitable recommendation for improving the level of customer

satisfaction

2.4 NEED OF THE STUDY

1. Hero MotoCorp ltd is a leading two wheeler manufacturing brand. Need

to analyze customer satisfaction towards brand.

2. Since it is a competitive market with the intervention of international

brand, this study will tell you the market status of the brand.

2.5 SCOPE OF THE STUDY

This study includes direct interaction with the customer and helps us to know

the “market potential and customer satisfaction level’ to greater accuracy.

21 | P a g e


This study is of great importance to the company which will know about the

customer preference to buy a particular brand.

So scope of the study is to achieve customer satisfaction and quality

maintenance is company’s primary objective.

The method adopted for data collection required for this research is the survey

method. Thus a questionnaire was prepared consisting of simple question and

was distributed among 50 customers of hero motors.

2.6 Methodology

The methodology adopted was the survey and the sample method. The primary

data collected from the users from the personal as well as information collected

through questionnaires. Secondary method used to collect information from the

company books, internet, staff of the store, etc.

2.7 Sampling Technique:

The sampling technique used in this research is convenience sampling it is a

statistical method of drawing representative data by selecting people because of

the ease of their volunteering or selecting units because of their availability or

ease access the advantage of this type of sampling are the availability or easy

access. The advantage of this type of sampling are the availability and the

quickness with which data can be gathered. The disadvantage are the risk that

the sample might not represent the population as a whole, and it might be biased

by volunteers. A convenience sample is simply one where the units that is in

stark contrast in the sample are the easiest to access. This is the stark contrast to

probability sampling technique where the selection of units is made randomly.

22 | P a g e


Sample size

The numbers of respondent were limited to 50 customer at satyom motors.

2.8 Tools for data collection

Primary data

Primary data is the data which is collected by the research directly from his own

observation and experience. For example, if the research conducted a survey for

the collected of data then its known as primary data.

The method used for the collection of primary data is questionnaire method.

Questionnaire Method

For the purpose of the project, first-hand information was used in form of a

structural questionnaire on the bases the service, company name and other

possible aspects of the company. The questioner contained 1question. The

respondent had to write or select the option they felt appropriate after the

23 | P a g e


questioner was designed, the fieldwork was organized. The questioner was

distributed personally. After collecting the required information the questioner

was transferred to the worksheet. A master table was prepared. The findings

were finally recorded and the data was represented graphically.

Secondary Data

Secondary data is data collected by someone other than the user. Common

sources of secondary data for social science include censuses, organizational

records and data collected through qualitative methodologies or qualitative

research. Primary data, by contrast, are collected by the investigator conducting

the research. Secondary data analysis saves time that would otherwise be spent

collecting data and, particularly in the case of quantitative data, provides larger

and higher-quality databases that would be unfeasible for any individual

researcher to collect on their own. In addition, analysts of social and economic

change consider secondary data essential, since it is impossible to conduct a

new survey that can adequately capture past change and/or developments

2.9 Reference Period

The information gathered and compiled for this research was approximately for

2 months in January and March.

2.10 Plan of Analysis

Processing and analysis of data was made from responses to each question. The

response was tabulated and analysed through percentage analysis etc. the

collected data has been represented in form on tables and charts.

24 | P a g e


2.11 Limitation of study

The following are the limitation which where encountered during the period in

which the research was done.

The sample Size is restricted to only 50 people. This is small selected

selection people.

The study was limited to one region (Bangalore)

The research is very time consuming process.

People were hesitating to fill up the forms and out of 10 only 1 people

fills the form.

2.12 AN OVERVIEW OF THE CHAPTER SCHEME:

Chapter 1: Introduction:

This chapter provides a background to the topic keeping in mind the definition,

scope, objectives, needs, purpose, etc. under the study of company’s financial

performance.

Chapter 2: Research design:

This chapter provides a bird’s eye view of the study. It contains the statement of

problem, scope of study, objectives of the study and operational definitions.

Chapter 3: Profile of the company:

This chapter gives detailed information about the company.

Chapter 4: Analysis and Interpretation:

25 | P a g e


This is where the collected data is represented in the form of tables and graphs.

And an interpretation is derived from the analysis.

Chapter 5: Summary of findings, Conclusions and Suggestions:

This chapter provides a summary on the findings and conclusions derived from

the previous chapters. And provide suggestions.

3.1 Introduction

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India. In India, it has a market share of

about 46% share in 2-wheeler category. The 2006 Forbes 200 Most Respected

companies list has Hero Honda Motors ranked at 108. On 31 March 2013, the

market capitalization of the company was INR 308 billion (USD 5.66 billion)

Hero Honda started in 1984 as a joint venture between Hero Cycles of India

and Honda of Japan. In 2010, when Honda decided to move out of the joint

venture, Hero Group bought the shares held by Honda. Subsequently, in August

2011 the company was renamed Hero MotoCorp with a new corporate identity.

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.

26 | P a g e

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

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


Hero MotoCorp is now world’s largest manufacturer of two-wheelers. The

company has benefited from the demand shift to motorcycles, as it focuses

solely on this product segment (although has a product called Pleasure in

Scooter segment). With fuel efficiency and riding comfort as the main selling

points, HMC has been able to address a wide market and post robust sales

growth even after its separation from the Japanese major Honda.

3.2 Company History - Hero Moto Corp

1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

1975—Hero Cycles becomes largest bicycle manufacturer in India.

1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan

signed Shareholders Agreement signed

1984—Hero Honda Motors Ltd. incorporated

1985—Hero Honda motorcycle CD 100 launched.

1989—Hero Honda motorcycle Sleek launched.

1991—Hero Honda motorcycle CD 100 SS launched.

1994 – Hero Honda motorcycle Splendor launched.

1997—Hero Honda motorcycle Street launched.

1999 – Hero Honda motorcycle CBZ launched.

2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle

Ambition launched.

27 | P a g e


2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle

Splendor plus, Hero Honda motorcycle Passion Plus and Hero Honda

motorcycle Karizma launched.

2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle

CBZ* launched.

2005—Hero Motocorp Super Splendor, Hero Honda motorcycle CD Deluxe,

Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and

Hero Honda Scooter Pleasure.

2007—New Models of Hero Honda motorcycle Splendor NXG, New

Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda

motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.

2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.

2009—New Models of Hero Honda motorcycle Karizma :Karizma – ZMR

and limited edition of Hero Honda motorcycle Hunk launched

2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero

Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor

launched.

2011—New Models of Hero Honda motorcycles Glamour, Glamour FI,

CBZ Xtreme, Karizma launched. New licensing arrangement signed

between Hero and Honda. In August Hero and Honda parted company, thus

forming Hero MotoCorp and Honda moving out of the Hero Honda joint

venture. In November, Hero launched its first ever Off Road Bike Named

Hero "Impulse".

2012-New Models of Hero MotoCorp Maestro the Masculine scooter and

Ignitor the young generation bike are launched.

2013-Hero MotoCorp unveiled line-up of 15 updated products including

Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF

28 | P a g e


Deluxe ECO, Hero MotoCorp Super Splendor, Passion Pro and Xpro,

Glamour and Glamour FI etc. It also introduced three new technologies-

Engine Immobilizer in new Xtreme, Integrated Braking System (IBS)

2014-Pleasure and i3S & in new Splendor iSmart.

3.3 VISION

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

empowered India, powered by its bikes. 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.

3.4 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.

29 | P a g e


3.5 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.

3.6 MANUFACTURING

Hero MotoCorp two wheelers are manufactured across three 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 are based at Haridwar, in the hill state of

Uttrakhand.

3.7 TECHNOLOGY

In the 1980's the Company pioneered the introduction of fuel-efficient,

environment friendly four-stroke motorcycles in the country. 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.

Its plants use world class equipment and processes and have become a

benchmark in leanness and productivity.

Hero MotoCorp, in its endeavour to remain a pioneer in technology, will

continue to innovate and develop cutting edge products and processes

3.8 DISTRIBUTION

30 | P a g e


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 5000

customer touch points. These comprise a mix of authorized dealerships, service

& spare parts outlets and dealer-appointed outlets across the country.

3.9 SUPPLY CHAIN MANAGEMENT

As the Company prepares to produce a wider range of products, efforts are

being taken to align the supply chain and prime up its supplier base. During the

year, the Company kick-started the process of migrating its existing brands to

the new brand. The exercise is expected to be completed during 2012-13.

During the year, the Company also commenced the process of working with its

vendors to develop new parts. The Company’s Supply Chain Management

function is built on three planks:

Cost

Quality

Sustainability

Tracking inventory cost effectively and efficiently is known to be a key source

of competitive advantage in the automobile industry. Hence, it comes as no

surprise that cost leadership is the Company’s prime focus area. Continual

pressure on margins forced the Company and its supply chain partners to find

innovative and alternate ways to combat inflation. Considerable attention was

given to managing component inventory in the system, with double-digit

growth in inventory turnover. To align HR processes with the supply chain, top

two HR consulting firms in India are working with supply chain partners. The

exercise is aimed at improving robustness of people processes and resulting in a

31 | P a g e


direct impact on quality, cost, productivity, delivery and reliability. The move

will enable supply chain partners move to the next orbit of operational

excellence. The Company initiated more than 30 quality improvement projects

with supply chain partners to provide better quality products to customers.

3.10 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.

3.11 Termination of Honda joint venture

In December 2010, the board of directors of the Hero Honda Group has

decided to terminate the joint venture between Hero Group of India and Honda

of Japan in a phased manner. The Hero Group would buy out the 26% stake of

the Honda in JV Hero Honda. Under the joint venture Hero Group could not

export to international markets (except Sri Lanka) and the termination would

mean that Hero Group can now export. Since the beginning, the Hero Group

relied on their Japanese partner Honda for the technology in their bikes. So

there are concerns that the Hero Group might not be able to sustain the

performance of the Joint Venture alone.

The Japanese auto major will exit the joint venture through a series of off

market transactions by giving the Munjal family—that held a 26% stake in the

company—an additional 26%. Honda, which also has an independent fully

owned two wheeler subsidiary—Honda Motorcycle and Scooter India (HMSI)

32 | P a g e


—will exit Hero Honda at a discount and get over $1 billion for its stake. The

discount will be between 30% and 50% to the current value of Honda's stake as

per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an

irritant. Differences had been brewing for a few years before the split over a

variety of issues, ranging from Honda's reluctance to fully and freely share

technology with Hero (despite a 10-year technology tie-up that expires in 2014)

as well as Indian partner's uneasiness over high royalty pay-outs to the Japanese

company. Another major irritant for Honda was the refusal of Hero

Honda (mainly managed by the Munjal family) to merge the company's spare

parts business with Honda's new fully owned subsidiary Honda Motorcycle and

Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal

family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated

special purpose vehicle (SPV) to buy out Honda's entire stake, which will be

backed by bridge loans. This SPV would eventually be thrown open for private

equity participation and those in the fray include Warburg Pincus, Kohlberg

Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until

2014 for existing as well as future models.

33 | P a g e


Hero No. 1 and going strong

When Hero parted ways with Honda three years ago, there were a whole lot of

people who thought it was all over for the Munjals-promoted group.

If the numbers of 2013-14 are anything to go by, these naysayers would

probably have to eat their words. Hero MotoCorp wrapped up with sales of 6.25

million bikes and scooters, considerably ahead of its former Japanese partner’s

tally of 3.72 million units. Bajaj Auto followed with 3.42 million with TVS

Motor just short of the two million-unit mark (1.99 million).

Industry sources say Hero will sit pretty so long as its killer duo, the Splendor

and Passion, continue to catch the eye of the market. “Sure, they have been

around for years but buyers don’t seem to mind,” an executive from a rival two-

wheeler company said. These two brands account for nearly 60 per cent of Hero

MotoCorp’s sales and are going as strong as ever.

3.12 Expansion

Yet, there is no denying the fact that Honda is already proving to be a serious

adversary. At the time of its split with Hero, it only had one plant in Haryana

which was churning out 1.6 million bikes/scooters annually. Since then, the

company has added Rajasthan, Karnataka and Gujarat to its expansion plans. In

34 | P a g e


the following weeks, its capacity will reach 4.6 million units and, following the

commissioning of the Gujarat facility, this will be close to six million units.

This remarkable buildup will happen in the next 18 months which means Honda

will quickly bridge the gap with Hero unless the latter manages to replicate this

kind of a feverish pace. By the end of 2015-16, Honda is targeting 40 per cent

of the market and is likely to take the top slot very soon thereafter.

It will also be interesting to see what Bajaj Auto has up its sleeve while the tug-

of-war between Hero and Honda intensifies in the coming months. The Pune-

based company has reiterated that it will focus on its Pulsar and Discover

brands in motorcycles while leveraging KTM both here and overseas. Bajaj will

also continue to focus on building its exports business which could take up 50

per cent of its volumes in the next couple of years.

Indeed, scooters have been the biggest growth story of 2013-14 as evident in the

portfolio of Honda, Hero, TVS, Yamaha and Suzuki. The notable exception to

this list is Bajaj, once synonymous with the traditional geared scooter. The

company is categorical that it will stick to motorcycles which form a larger part

of the global canvas. Will it change its mind about scooters in the near future?

This remains the million dollar question.

35 | P a g e


3.13 ORGANISATIONAL CHART OF HERO MOTO CORP.

36 | P a g e


Directors

Founder Director and Chairman: Dr. Brijmohan Lall Munjal

37 | P a g e


Managing Director and CEO : Mr. Pawan Munjal .

Board of Directors

Name of the person Nature of the Office

Mr. Sunil Kant Munjal Non-Executive Director

Mr. Suman Kant Munjal Director

Mr. Paul Edgerley Non-Executive Director

Mr. Pradeep Dinodia Director

Gen. (Retd.) V. P. Malik Director

Mr. Analjit Singh Director

Dr. Pritam Singh Director

Mr. M. Damodaran Director

Mr. Ravinath Director

Dr. Anand C.Burman Director

Dr. Brijmohan Lal Munjal

Mr. 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.

3.14 Corporate Governance

At Hero MotoCorp, it is the firm’s belief that the essence of Corporate

Governance lies in the phrase ''Your Company''. It is ''Your'' Company because

it belongs to you - the shareholders. The Chairman and Directors are ''Your''

38 | P a g e


fiduciaries and trustees. Their objective is to take the business forward in such

a way that it maximizes ''Your'' long-term value.

This Company is committed to benchmarking itself with global standards for

providing good Corporate Governance. It has put in place an effective

Corporate Governance System which ensures that the provisions of Clause 49

of the Listing Agreement are duly complied with.

The Board has also evolved and adopted a Code of Conduct based on the

principles of Good Corporate Governance and best management practices being

followed globally.

3.15 CORPORATE SOCIAL RESPONSIBILITY

HOCKEY

Hockey is India's national sport, and Hero is committed to doing its part to

promote and popularize the sport. In 2010, Hero MotoCorp extended its support

to Hockey by sponsoring the 'Hockey World Cup 2010' that was held in India. 2

years after this, Hero Motocorp was also the sponsor of the 'FIH Road to

London 2012' tournament.

The company is proud to associate with, and will continue to endorse this great

sport in the future.

GOLF

Hero MotoCorp, took over title sponsorship of the World Challenge. The Hero

World Challenge is an offseason golf tournament hosted by Tiger Woods,

which takes place in December at Sherwood Country Club, a course designed

by Jack Nicklaus, in Thousand Oaks, California. It features a small number

(currently 18) of top-ranked golf pros.

39 | P a g e


CRICKET

Our association with cricket goes a long way. Hero MotoCorp has in the past

sponsored major cricket tournaments in association with International Cricket

Council (ICC), including the cricket World Cup and the Champions Trophy.

Hero has also been associated with IPL.

SPORTS ACCESSORIES

Wouldn't you love to play your favourite shots of cricket with the bats that

Virender Sehwag prefers? 'Hero' custom cricket bats that Sehwag loves,

available in Kashmir and English Willow, nurtured in India, can now be

purchased at select Hero MotoCorp dealerships and distributors across the

country.

Kashmir Willow bats require constant knocking and oiling to strengthen it for

use in a cricket match. Knocking is done to compress the fibres of the willow

blade together which helps the bat bear the impact of the ball. English Willow

nurtured in India is by nature a soft fibrous wood. Its natural moisture and

ability to be pressed in the manufacturing process gives great ball striking

qualities.

GRADING POSITIVES

Market leadership, strong brand equity, professional management, high

operating efficiency and established scale economies. Strong financial profile

characterized by healthy margins, high profitability and cash generation.

Potential upsides to our estimates: (1) HMCL sustains its current market share,

leveraging its brand equity, product performance and distribution strengths; (2)

industry growth exceeds our estimates over the medium term despite existing

concerns on macro-economic scenario; (3) HMCL betters the margins estimated

40 | P a g e


by us via sustained business growth and increases in operating efficiency even

in the face of competitive and cost pressures.

Profile of target customer

Hero MotoCorp basically targets the every each and segments of the market. So

there are some products like Splendor, CD- dawn (rs40000-50000) they made

for lower segment of the market and glamour, passion, CBZ, Karzima (rs above

50000) for the upper segment of the market. And now they are trying to target

the young people of the market.

India’s Hero MotoCorp, the world’s largest producer of motorcycles and

scooters, has announced its intention to expand globally, with plans to sell

vehicles on three continents and nearly double its unit sales within five years.

The company, whose family shareholders bought out its former partner Honda

Motor this year, said it would invest about $1bn to expand internationally in

south-east Asia, Africa, and Central and Latin America.

•Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in

their product. And after selling they have the services and maintenances. Their

constant endeavour is to support the company's mandate of providing highest

level of customer satisfaction by taking good care of customer’s two-wheeler

service and maintenance through their vast network of more than 2100

committed dealers and service outlets spread across the country.

Apart from that Hero MotoCorp focused on cleanliness and other aesthetics of

the service stations and add such air conditioned waiting area, internet surfing,

coffee shops etc. to enhance the in house experience of the customers at those

“customer touch point”. To ensure that millions of customers in the rural area

are not left waiting for adequate service as it is impossible for the company to

41 | P a g e


introduce service station at every nook and corner of the country, mobile service

stations are regularly arranged with prior intimation to public about the rout that

the mobile workshop would take when passing through that region so that

customers can come and get their two wheelers serviced. All these activities are

aimed to increase the customer loyalty and thus retaining customers.

3.16 Goodlife: Customer Loyalty Program

GoodLife is a Customer Relationship Program introduced a decade ago, which

Endeavour’s to enhance customer satisfaction and initiate increased levels of

member engagement.

The main objective of this Program is to make our customers our Brand

Ambassadors to generate referral sales and boost service visits.

The GoodLife Program has enabled the Company build a consolidated base of

10 million plus loyal customers; in the process, a new distribution platform has

emerged. GoodLife now contributes a huge 14% to the Company’s overall sales

(purely through referrals), in addition to incremental sales. Good Life has

emerged as the largest Customer Relationship Program in India, witnessing

additions of 0.38 million members each month. During the year, the Program’s

member base shot up 16%, with new 4.51 million transactions being

undertaken.

Besides aiming to increase the number of customers and volume of transactions,

the Program seeks to enhance revenue opportunities for dealers as well.

Different levels of engagement have been in-built into the Program with the aim

of increasing its people engagement initiatives. Some of these are: transaction-

based rewards, exclusive event invites, personal accidental insurance, service

continuity bonus, transaction benefits on special occasions (birthdays,

anniversaries), quarterly newsletters and interaction through a program website.

42 | P a g e


The Program began with a member transaction booklet, a replica of the Passport

Booklet, which helps in engaging with customers. However, the Program has

been e-enabled now to improve its geographical reach and efficiency level. It

runs on the backbone of a robust and engaging front-end and a sound, solid and

technical back-end. The Program includes customized technology, combining a

mix of Magnetic Swipe/Bar Code. Personalized Membership Cards are shared

with GoodLife members, which are easy to carry, transact and earn/redeem

rewards. Online member profiling and real-time customer feedback module (via

questionnaires) are some more salient features of the Program. During the year,

GoodLife has been the recipient of several accolades and awards on national

and international platforms. Some of these were:

‘Order of Merit’ in PMAA awards 2011 under ‘Best Activity Generating

Short or Long Term Brand Loyalty’ category

Colloquy Award under Innovation in Loyalty Marketing (International)

category

Qualified as ECHO Finalist (5th place) in 2011 DMA International

ECHO™ Awards competition Loyalty Award under Auto Sector

OPERATION RAMP-UP

With demand for bikes recording a stupendous growth of 15% during the year

under review, the Company’s capacities were severely strained. This prompted

it to augment its capacity at its three plants – up from 5.4 million units to 6.35

million – during the year. This was made possible through a number of de-

bottlenecking measures. For example, the Company’s plants were made leaner

by outsourcing non-critical processes and operations.

43 | P a g e


Besides this, a number of structural changes and alterations were made in its

manufacturing strategy to effectively implement its Sales Plan for 2012-13.

Major replacements were also executed in the paint and assembly shop,

ensuring little or no shutdown along the assembly line. Apart from the above

measures, several innovative technologies were inculcated to reduce operational

costs. Some examples of these are:

A breakthrough technology for gear rolling was implemented for mass-

production

Fine blanking, an alternate process of hobbling, was introduced for sprocket

components

Advanced cam grinding was introduced to increase productivity and control

costs

The Company’s oldest plant at Dharuhera was in the limelight for two specific

reasons:

Wage negotiations were concluded

Plant won TPM Excellence Award

The Company continues to set new industry benchmarks in the areas of energy

conservation and sustainability. Vapour absorption machines and heat recovery

units were installed during the year to utilize waste heat from Gas DGs for air-

conditioning and pre-heating of hot water generation. Other green initiatives

included projects on waste water management, LED lighting and solar power.

These cost leadership and green projects yielded considerable savings to the

Company within a short period of time.

3.17 PORTFOLIO OF PRODUCTS

44 | P a g e


Hero MotoCorp offers wide range of two wheeler products that include

motorcycles and scooters, and has set the industry standards across all the

market segments.

BIKE CATRGORIES ACCORDING TO CC.

100cc 125cc 150cc and above

SPLENDOR PLUS

SPLENDOR NXG

SPLENDOR PRO

SPLENDOR I

SMART

PASSION PRO

PASSION XPRO

MAESTRO

PLEASURE

HF DAWN

HF DELUXE

GLAMOUR

SUPER

SPLENDOR

IGNITOR

Glamour PGM FI

ACHIEVER

KARIZMA

KARIZMA

ZMR

IMPULSE

HUNK

XTREME

3.18 Termination of Honda joint venture

In December 2010, the board of directors of the Hero Honda Group has decided

to terminate the joint venture between Hero Group of India and Honda of Japan

in a phased manner. The Hero Group would buy out the 26% stake of the Honda

in JV Hero Honda. Under the joint venture Hero Group could not export to

international markets (except Sri Lanka) and the termination would mean that

Hero Group can now export. Since the beginning, the Hero Group relied on

their Japanese partner Honda for the technology in their bikes. So there are

45 | P a g e


concerns that the Hero Group might not be able to sustain the performance of

the Joint Venture alone.

The Japanese auto major will exit the joint venture through a series of off

market transactions by giving the Munjal family—that held a 26% stake in the

company—an additional 26%. Honda, which also has an independent fully

owned two wheeler subsidiary—Honda Motorcycle and Scooter India (HMSI)

—will exit Hero Honda at a discount and get over $1 billion for its stake. The

discount will be between 30% and 50% to the current value of Honda's stake as

per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an

irritant. Differences had been brewing for a few years before the split over a

variety of issues, ranging from Honda's reluctance to fully and freely share

technology with Hero (despite a 10-year technology tie-up that expires in 2014)

as well as Indian partner's uneasiness over high royalty pay-outs to the Japanese

company. Another major irritant for Honda was the refusal of Hero

Honda (mainly managed by the Munjal family) to merge the company's spare

parts business with Honda's new fully owned subsidiary Honda Motorcycle and

Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal

family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated

special purpose vehicle (SPV) to buy out Honda's entire stake, which will be

backed by bridge loans. This SPV would eventually be thrown open for private

equity participation and those in the fray include Warburg Pincus, Kohlberg

Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until

2014 for existing as well as future models.

46 | P a g e


4.1 Analysis and Interpretation

Under this section of the project, the questionnaire circulated is

thoroughly analysed and interpreted, based on which suggestions and

recommendations will be given which would help hero in strengthening

their customer base.

All questions asked are analysed below and graphically represented and

each question and response is analysed and results interpreted.

This section of the project holds immense importance as in, it depicts the

level of customer satisfaction towards the Hero product.

47 | P a g e


All questions asked in the questionnaire are analysed and the

Interpretation are drawn below.

4.1(a) Table showing the age group of the respondent

Age group No. of Respondents Percentage

20-25 years 5 10%

25-35 years 16 32%

35-45 years 21 42%

Above 45 years 8 16%

Total 50 100%

48 | P a g e


Analysis -

From the following table it can be analysed that the 42% of the respondent belong

to 35-45 years age group, 32% of the respondent belong to 25-35 years age

group,16% of the respondent belong to above 45 years age group,10% of the

respondent belong to 20-25 years of age group.

4.1(b) Chart showing the age group of the respondent

49 | P a g e


20-25 years10%

25-3532%

35-4542%

Above 4516%

Percentage

Interpretation:-

From the following graph it can be concluded that the percentage of people is

more in age group 35-45 years that is middle age people that are very attached

to the company. The remaining 20-25 years are youth that are more towards

international companies.

4.2(a) Table showing the different level of income group of the

respondent.

50 | P a g e


Income group No. of Respondents Percentage

Less than 25,000 5

10%

25,000 to 50,000

20 40%

50,000 to 75,000

17 34%

More than 75,000

8 16%

Total

50 100%

Analysis-

From the following analysis table it can be analysed that, 40% of respondent

belong to the income group of Rs. 25,000 to 50,000 followed by 34% of

respondent of the belong to the income group of Rs. 50,000 to 75,000, 16% of

respondent belong to the income group of belong to age group of more than Rs.

75,000 and by 10% of respondent of the belong to the income group of less than

Rs. 25,000.

4.2(b) Graph showing different level of income group of the

respondent.

51 | P a g e


Less than 25,000 25,000 to 50,000 50,000 to 75,000 More than 75,0000

2

4

6

8

10

12

14

16

18

20

5

20

17

8

Income Group

Interpretation:

From the following chart we can conclude that, company is having most

number of person from income group Rs. 25,000 to 50,000 they are mostly

working class people. The remaining are less than Rs 25,000 who are part time

workers and staff.

4.3(a) Table showing the preference of the vehicle by the

respondent.

52 | P a g e


Analysis:-

From the following above table it can be analysed that the 40% of respondents

are using Splendor, 24% of respondents using Glamour, 20% use pleasure,

20%use Maestro and 8% use karizm.

4.3(b) Graph showing the preference of the vehicle by the

respondent.

53 | P a g e

Model No. of Respondents Percentage

SPLENDOR 20 40%

GLAMOUR 12 24%

KARIZM 4 8%

MAESTRO 4 8%

PLEASURE 10 20%

Total 50 100%


20

12

4

4

10

Preference

SPLENDOR GLAMOUR KARIZMA MEASTRO PLEASURE

Interpretation:-

From the following graph it can be concluded that the most number of

respondents are using Splendor due to high mileage and lowest

maintenance. The remaining lowest percentage use Karzima and Maestro

as are their better substitute in the market.

4.4(a) Table showing how much respondent has used the vehicle.

Distance (km) No. of Respondents Percentage

54 | P a g e


500 - 5000km 4 8%

5000 - 20000km 10 20%

20000 - 40000km 11 22%

40000 & Above km 25 50%

Total 50 100%

Analysis: –

From the following above table it can be analyzed that the 8% of respondents

has travelled 500-5000 km, 20% of respondents has travelled 5000-20000 km,

22% of respondents has travelled 20000- 40000 km and 50% of respondents has

travelled 40000 km & Above.

4.4(b) Graph showing how much respondent has used the

vehicle.

55 | P a g e


500 - 5000 5000 - 20000 20000 - 40000 40000 & Above0

5

10

15

20

25

4

10 11

25

Distance Travelled

Interpretation:-

From the above graph it can be concluded that most respondents has travelled

40000 & above are the people who travel long distance for work. And the

remaining small group of people have multiple vehicle.

4.5(a) Table showing the usage of the vehicle.

Time (Years)No. of Respondents Percentage

56 | P a g e


Less than 1 year 4 8%

1-2 Years 14 28%

2-4 Years 20 40%

4 years & Above 12 24%

Total 50 100%

Analysis:

From the above table it can be analyzed that, 8% of respondents has used

vehicle for Less than 1 year, 28% of respondents has used vehicle for 1-2 years,

40% of respondents has used vehicle for 2-4 years, 24 % of respondents has

used vehicle for 4 years & above.

4.5(b) Graph showing the usage of the vehicle.

57 | P a g e


Less than 1 year 1-2 Years 2-4 Years 4 years & Above0

2

4

6

8

10

12

14

16

18

20

4

14

20

12

Time period for use of vehicles

Interpretation:-

From the above graph it can be concluded that 40% of respondents has used

vehicle for 2-4 years as the new models and up gradation are coming to meet to

it. And the small percentage of people keep no changing the vehicle to get the

latest in the market.

4.6(a) Table showing the main unique selling preposition of

the vehicle.

58 | P a g e


Particulars No. of Respondents Percentage

SPEED 5 10%

POWER/ BHP 14 28%

MILEAGE 20 40%

DESIGN 11 22%

Total 50 100%

Analysis:

From the above table it can be analyzed that, 10% of respondents bought

vehicle due to speed , 28% of respondents bought vehicle due to power, 40% of

respondents bought vehicle due to mileage and 22% of respondents bought

vehicle due to design.

4.6(b) Graph showing the main unique selling preposition of

the vehicle.

59 | P a g e


Speed Power Mileage Design0

2

4

6

8

10

12

14

16

18

20

5

14

20

11

Unique selling preposition

Interpretation:-

From the above graph it is inferred that, 40% of respondents bought vehicle due

to mileage as the fuel price is rising and for the local usage. The rest group of

people bought due to other important feature.

4.7(a) Table showing the influencer behind the purchase.

60 | P a g e



CHILDREN’S 2 4%

WIFE 9 18%

FRIENDS 30 60%

PARENTS 9 18%

Total 50 100%

Analysis:-

From the above table it can be analyzed that, 4% of respondents bought vehicle

due to influence of children, 18% of respondents bought due to wife, and 60%

of respondents bought due to friends, 18% of respondents bought due to parents

influence respectively.

4.7(b) Graph showing the influencer behind the purchase.

61 | P a g e


Children's Wife Friends Parents0

5

10

15

20

25

30

2

9

30

9

Influencer

Interpretation:-

From the above graph it is inferred that, 60% of respondents bought due to

friends as they also own that type of vehicle and they are the most approachable

to them. The remaining people are influenced by the family members.

4.8(a) Table showing the purpose of buying the vehicle.

Particulars

62 | P a g e


No. of Respondents Percentage

Official 20 40%

Household 14 28%

Business 5 10%

Any other 11 22%

Total 50 100%

Analysis:-

From the above table it is inferred that, 40% of respondents bought for official

purpose, 28% of respondents bought for household purpose, 10 % of

respondents bought for business purpose and 22% of respondents bought for

other purpose.

4.8(b) Graph showing the purpose of buying the vehicle.

63 | P a g e


Official Household Business Anyother0

2

4

6

8

10

12

14

16

18

20

20

14

5

11

Purpose of Purchase

Interpretation:-

From the above graph it can be seen that nature of purchase of vehicle by the

respondent are mainly for the official purpose. And the remaining use it for

other purpose.

4.9(a) Table showing the factor influencing the brand.

64 | P a g e



Brand Value 20 40%

Design 8 16%

Publicity 16 32%

Scheme 6 12%

Total 50 100%

Analysis

From the above table it can be analyzed that, 40% of respondents bought for

brand value, 16% of respondents bought for design, 32 % of respondents bought

for publicity and 12% of respondents bought for scheme.

4.9(b) Graph showing the factor influencing the brand.

65 | P a g e


Brand Value Design Publicity Scheme0

2

4

6

8

10

12

14

16

18

20

20

8

16

6

Purchase

Interpretation:-

From the following graph we can conclude that, people mostly go for brand

value then publicity followed by design and scheme. People mostly see the

image of the company in the market then buy the product.

.

4.10(a) Table showing the level of satisfaction of respondent.

66 | P a g e


Level No. of Respondents Percentage

Highly Satisfied 20 40%

Satisfied 22 44%

Dissatisfied 6 12%

Highly Dissatisfied 2 4%

Total 50 100%

Analysis

From the above table it is seen that, 40% of respondents fall under Highly

Satisfied, 44% of respondents fall under Satisfied, 12% of respondents fall

under dissatisfied and 4% of respondents fall under Highly Dissatisfied

4.10(b) Graph showing the level of satisfaction of

respondent.

67 | P a g e


Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied 0

5

10

15

20

25

2022

6

2

Satisfaction level

Interpretation:-

From the above graph it can be conclude that maximum percentage of people

are satisfied so the company is able to achieve its goal and the main motive of

customer satisfaction. It is also able to deliver good products to market. The

reaming customer should also be kept in mind and taken care of.

4.11(a) Table showing Factors better than our competitor.

68 | P a g e



Budget 15 30%

Brand 7 14%

Maintenance 22 44%

Service 6 12%

Total 50 100%

Analysis:-

From the above table it is inferred that, 30% of respondents bought due to

budget, 14% of respondents bought due to brand, 44% of respondents bought

due to maintenance, 12% of respondents bought due to Service.

4.11(a) Graph showing Factors better than our competitor.

69 | P a g e


Budget Brand Maintenance Service0

5

10

15

20

25

15

7

22

6

Influencing Factor

Interpretation:-

From the above graph it can be conclude tell that most of the people who buy

hero vehicle is due to maintenance. Which is the thing that keep us better than

our competitor.

4.12(a) Table showing the problem faced by the customer.

70 | P a g e


Problem faced No. of Respondents Percentage

LACK OF COMMUNICATION

10 20%

POOR QUALITY 10 20%

DELAY IN DELIVERY 14 24%

OTHER THINGS 16 36%

Total 50 100%

Analysis:-

From the above table it can be concluded that, 20% of respondents has faced

problem with Lack of communication, 20% of respondents has faced problem

with poor quality, 24% of respondents has faced problem with delay in

delivery, and 36% of respondents has faced other things.

4.12(b) Graph showing the problem faced by the customer.

71 | P a g e


Lack of communication poor quality Delay in delivery Other things0

2

4

6

8

10

12

14

16

10 10

1416

Problem faced

Interpretation: -

From the above graph we come to a conclusion that people face no problem at

the time of the service and only few people complain about price of the spare

parts or low quality or delay in service.

4.13(a) Table showing the reliability of the Hero vehicles.

72 | P a g e


ParticularsNo. of Respondents Percentage

EXCELLENT20 40%

GOOD 22 45%

AVERAGE 6 14%

POOR 2 4%

Total 50 100%

Analysis

From the above table it is analysed that, 40% of respondents feels excellent

for the reliability of the hero, 45 % of respondents feels excellent for the

reliability of the hero, 14% of respondents feels good for the reliability of the

hero, and 4% of respondents feels excellent for the reliability of the hero.

4.13(b) Graph showing the reliability of the Hero vehicles.

73 | P a g e


Excellent Good Average Poor0

5

10

15

20

25

2022

62

Realiability

Interpretation:-

From the above graph it is concluded that respondent find hero vehicles as reliable and

can use it for longer duration of time and also very few people have rated is as poor.

Company should take of that.

4.14(a) Table showing customer recommending our brand to

others.

74 | P a g e



SURELY WILL RECOMMEND

31 62%

WILL RECOMMEND 9 18%

CAN’T SAY 7 18%

NOT SURE 3 6%

Total 50 100%

Analysis

From the above table it is analysed that, 6% of respondents are not sure about

the recommendation, 14% of respondents can’t say about the recommendation,

18% of respondents will recommendation, 62% of respondents surely will

recommend.

4.14(b) Table showing customer recommending our brand to

others.

75 | P a g e


37

931

Recommend

Not Sure Can't Say Will Recommend Suerly will recommend

Interpretation: -

From the above chart we can conclude that maximum percentage of people have

chosen the option that they will recommend it to other people and very few have

chosen the option not sure.

4.15 (a) Table showing the main source of information.

76 | P a g e


Source No. of Respondents Percentage

TELEVISION 20 40%

NEWSPAPERS 12 24%

BANNERS &

HOARDINGS6 12%

INTERNET 12 24%

Total 50 100%

Analysis:-

From the above table it is analysed that, 40% of respondents cam to know

through television, 24% of respondents cam to know through newspaper, 12%

of respondents cam to know through Banners & Hoardings, 24% of respondents

cam to know through internet.

4.15 (b) Graph showing the main source of information.

77 | P a g e


Television Newspapers Banners & Hoardings Internet0

2

4

6

8

10

12

14

16

18

20

20

12

6

12

Advertisement

Interpretation: -

From the above graph it can be conclude that with the help of television maximum

percentage of people can be reached as compared to other sources of advertisement. As it is

densely available and attractive.

5.1 FINDINGS

It can be stated that the customer of the company are more from the

middle age.

78 | P a g e


It is seen that the customers where taken care with courtesy and addressed

all question and problem of the respondent with interest and helped in

solving their issue.

As per the research it is seen that problem were quickly solved and taken

care of which is one of a good factor because the objective of the

company is to satisfy the customer.

It can be seen that the customer service is an effective system which

records all call and message and helps store the data and faster flow of

information thereby solving the issue faster.

It can be state that overall respondent view with the customer satisfaction

was good because we follow a system of objective and strive to follow it

through our vision.

It is also seen that the service is bit expensive but the return on that is

very good and they are highly satisfied with the service provide.

It is found that the customer has rated our vehicle as excellent due to its

great mileage and the cheap maintenance.

It can be also be seen that we stand out on the service and the pricing

strategy is best the market comparing to other competitors in the market.

Customer has stated that they came to know about the product through

television

79 | P a g e


It is state that the customer have rated us excellent in overall due to the

service we provide to them and maintain it.

5.2 SUGGESTION & RECOMMENDATION

After meeting the customer and talking to them about the live tips and their

service and knowing their requirements the following recommendation is being

developed.

1. Target customer

80 | P a g e


The main target new customer should be seen as an opportunity to the company.

We should help more and more customer to buy our product, and make them fill

them fill that the buying our product is not an expenditure it’s an investment for

the long term which will give you good retune in future. Being the maintenance

and other USP of the product. And also giving the exchange offers and easy

finance offer that will help them to buy vehicle from you.

2. Customer satisfaction

For the small crowd of people who are not satisfied with the company they

should be approached back and their problem should be solved. For the people

who are on average level then continues customer service should be done for

them to make them satisfied. Over all for each and every customer there should

be no delay done for any complains and their requirements.

3. Service

Due to more fluctuation of market the analysis of tips should be asked to

generate more accurate and perfect tips to be sending and while sending delayed

should not be done in it.

5.3 CONCLUSION

Research above shows the customer satisfaction of hero motors through live tips

and the questioner. In regards to their various service and customer service.

Also the overall rating of the company and how it stands beyond of their

competitor.

81 | P a g e


The study shows that the 70% - 80% of the customer are satisfied with the kind

of service and customer relationship is done with them by live tips. The new

customer also fined the company different from other company which is a

positive point for them. To fulfill the customer requirement in time should be

seen.

Over all the company present customer satisfaction level are on satisfied with a

small number of people of people not satisfied, which should be taken care of.

Reference

Website

www.heromotocop.com

www.google.com

82 | P a g e

http://www.google.com/

http://www.heromotocop.com/


www.businessdictoinery.com

Books

Marketing management, Philip kotler 12th edition

Fundamental of marketing management, T.S Devaraja

Questionnaire on customer Satisfaction of Hero Bikes

Name:

Occupation: Student Business Professional

1. Age:

A) 20-25 B) 25-35 C) 35-45 D) above 45

83 | P a g e


2. Income (P.M) -

a. Less than 25,000 c. 25,000 to 50,000 b. 50, 000 to 75,000 d. More than 75,000

3. Which vehicle you have of Hero Motor cop?

a. Maestrob. Impulsec. Splendord. Karzima ZMR e. Passion

4. How much Km have you travelled till now?

a. 500km - 5000kmb. 5000km - 20000kmc. 20000km - 40000kmd. 40000km & above km

5. From how many years do you own the bike?

a. 0-1 yearb. 1-2 yearsc. 2- 4 yearsd. 4 & above years

6. What feature of bike you like the most while purchasing the bike?

a. Speed b. Power/ BHP c. Mileage d. Design 7. Who influenced you to buy this vehicle?

a. Friends b. Wife

84 | P a g e


c. Children’s d. Parents

8. For what purpose you buy Hero bike?

a. Officialb. Household c. Business d. Any other

9. Why did you purchased the bike?

a. Brand value b. Design c. Publicity d. Scheme

10. Which satisfaction level you fall under?

a. Highly Satisfied b. Satisfied c. Dissatisfied d. Highly Dissatisfied11. What factor influence you to buy the vehicle?

a. Budget b. Maintenance c. Brand d. Service

12. How do you think is the reliability of the hero vehicles?

A) Excellent B) Good

C) Average D) poor

13. What kind of problems faced during the time of service?

A) Delay in delivery B) Poor quality

C) Other things D) Lack of communication

14. Will you recommend are brand to your family and friends?

85 | P a g e


a. Strongly Recommend b. Recommend c. Somewhat recommend d. Not Recommend

15. How did you come to know about this model?

a. Internet b. Banners & Hoardings c. Friends/Relatives d. TV

Comment & Suggestion for the improvement.

Thank you for you Feedback

86 | P a g e

hero motors customer satisfsction

Marketing

roper steam velocipede

wheeled vehicle

sylvester roper steam

butler petrol cycle

steam propulsion

daimler reitwagen

rear wheel

new engine