surya new project 100

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A Project Report

On

CONSUMER BEHAVIOUR

On

Hero Honda Two Wheelers

PHOENIX MOTORS PVT. LTD

Hubsiguda, Hyderabad

Submitted to Osmania University in partial fulfillment of

The requirement for the Award of

Master in Business Administration

2005-07

By

S.surya charan

HTNO: 6405159

Bhavans vivekanda PG. COLLEGE

(AFFILIATED TO OSMANIA UNIVERSITY)

sanikpuri secunderabad


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Declaration

I, S.surya charan hereby declare that the dissertation titled Consumer

Behavior on Hero Honda two wheelers is based on the Original work

carried out by me under the guidance of the Mr. Mahendra, M.B.A Dept.

Bhavans P.G. College, as internal guide and Phoenix Motors Pvt. Ltd,

Habsiguda, Secunderabad, Towards the fulfillment of the requirement for the

award ofMasters Degree in Business Administration (M.B.A).

This dissertation has not been submitted in part or fulfillment of any other

degree/diploma awarded by Osmania University or any other University.

Place: Hyderabad

Date:

(S.surya charan)


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ACKNOWLEDGEMENT

At the outset I express my deep sense of gratitude to Honorable

Director ., Bhavans P.G College of Business

Management, for giving me an opportunity and permission to

undertake this practical training in the Market Field. And also thanks to

my General Management.

I extend my honest thanks to my Guide Mr.Imad Akhter,

Marketing manager of the Phoenix Motors, Habitudes, Hyderabad.

For his guidance throughout the course of my Project work at the

Organization.

I extend my sincere regards and heartful thanks to my guide

Mrs.---------------, and-------------- Head of the dept. M.B.A, for giving his

suggestions and guidance during the course of dissertation and in

preparation of this report.

I am thankful to my friends and consumers who have helped me

in the preparation of the project report

(S.surya charan)


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CONTENTS

S. No Particulars

Page

Chapter 1: INTRODUCTION

Topic & Significance

Need and Importance

Objectives

Scope

Methodology

Chapter layout

Limitation of Study

Chapter 2: PROFILE OF THE COMPANY

The Legend of Hero Honda

Objectives of the Study

Product Profile

Product Line Specifications

Chapter 3: PROFILE OF PHOENIX MOTORS

History

Advertising Strategy of Phoenix Motors

Sales Strategy of Phoenix Motors

Warranty on Proprietary Items


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Chapter 4: DATA ANALISYS & INTERPRETATION

Chapter 5: SUGGESTIONS AND CONCLUSIONS

ANNEXURE: QUESTIONARIES

BIBILOGRAPHY


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INTRODUCTION

The global business environment is buzzing with the single most

important issue of building a competitive edge by creating and

retaining a large number of customer than their goods and services.

Every organization is therefore seized of the task of establishing &

sustaining its worth to the customer, who has been rendered

unpredictable by competition.

Therefore, every business is engaged in making a continuous

effort for achieving customer loyalty, which however, has not been

achieved by any one in absolute terms. But the customer is not a

compromising mood to relax in his pursuit of advantages and to realize

value for his money. Organizations, therefore, is devoting their

attention to prove their customer worthiness.

In short, it is the total organizational culture and brand equity,

which face challenge of other organizations so that there is a perennial

struggle amongst organizations to sustain their existence in the market

place.

Phoenix motors pvt. Limited. Is such organization who is the

dealer of Hero Honda in the city of Hyderabad, and the identification of

the customers opinion lurking behind on the dealer service, has taken

in significance.


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The study is conducted primarily to know the customer opinion

towards features of different brands of motor cycles on behalf of

phoenix motors pvt ltd and find out the basic reasons to why

customers are feeling cognitive dissonance.

Survey research method is adopted to collect primary data from

the respondents

Due to time constraint only 100 respondents are randomly selected from the city of

Hyderabad. A predefined questionnaire is used as an instrument in collecting information

from the respondents. Various related to the automobile industry is u8sed for gatheringsecondary data.

The main findings of the study are most of the respondents are suggesting their vehicles

to others. Respondents are satisfied with the availability if spare parts.

The questionnaires used for collection of the data are predefined questionnaire so theintentions of respondents might not be clear. The study being restricted to the city of

Hyderabad and the views drawn out of the study may not to be applied to all the

geographical ares. All the view of the respondents cannot be drawn descriptively so theviews that arose from majority of the respondents are considered.


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NEED FOR THE STUDY

In the modern times the business organizations are adopting new

techniques and methods for the growth of business. The organizations

are giving better services.

To their customers to face challe3nge posed by the competitors.

For every business, it is not only important to retain the present

customers but also attract the new customers. So there is need to

ascertain the customers use regarding the services provided by key

organizations like Phoenix Motors Pvt Ltd.

With the increase market study there is a cut throughcompetition among the business men in the industry. Some of the

major competitors in this area are BAJAJ, TVS, YAMAHA,

etc..Hence there is a need for the study.

OBJECTIVES OF THE STUDY

To study about the customer satisfaction on the servicesprovided by the dealers.

To study the opinion of the customers regarding the availability

and cost of spare parts.

To study the opinion of the owners of motor cycles regarding its

features like mileage, price etc.

To study the effect of advertisement on the customers to

promote the product. To study the customer satisfaction with usage of their vehicle.

To study the information resources that the customer using

before purchasing the vehicle.


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The Consumer Market

The consumer market consists of all the individuals and

households who buy or acquire goods and services for personal

consumption. The simplest model of consumer buyer behavior is the

stimulus-response model. According to this model marketing stimuli

(the four Ps) and other major forces (economic, technological, political,

and cultural) enter the consumers black box and produce certain

responses. Once in the black box these inputs produce observable

buyer responses, such as product choice, brand choice, purchase

timing, and purchase amount.

Consumer Buyer Behavior

Consumer buyer behavior is influenced by four key sets of buyer

characteristics: cultural, social, personal, and psychological. Although

many of these factors cannot be influenced by the marketer, they can

be useful in identifying interested buyers and in shaping products and

appeals to serve consumer needs better. Culture is the most basic

determinant of a persons wants and behavior. It includes the basic

values, perceptions, preferences, and behaviors that a person learns

from family and other important institutions. Subcultures are cultures

within cultures that have distinct values and lifestyles and can be

based on anything from age to ethnicity. People with different cultural

and sub-cultural characteristics have different product and brand

preferences. As a result, marketers may want to focus their marketing

programs on the special needs of certain groups.

Social factors also influence a buyers behavior. A persons

reference groups-family, friends, social organizations, professional

associations-strongly affect product a brand choices. The buyers age,


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life-cycle stage, occupation, economic circumstances, lifestyle,

personality, and other personal characteristics influence his or her

buying decisions. Consumer life-styles the whole pattern of acting and

interacting in the world-are also an important influence on purchase

decisions.

Finally, consumer buying behavior is influenced by four major

psychological factors-motivation, perception, learning, and beliefs and

attitudes. Each of these factors provides a different perspective for

understanding the workings of the buyers black box.

MODEL OF CONSUMER BEHAVIOUR

Marketing and Other Stimuli Buyers Black Box Buyers Responses

Models of Buyer Behavior

Product EconomicPrice Technological

Place Political

Promotion Cultural

Buyer

Characteristics

Buyer

Decision Process

Product Choice

Brand Choice

Dealer Choice

Purchasing Timing

Purchase Amount


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METHODOLOGY

Research Methodology : Survey Method

Research Instrument : Questionnaire

Contact Method : Personnel Interview

The questionnaire was the main tool used for securing the

responses form the respondents regard the companies product.

The respondents were contacted personally interviewed them

and collected their views, opinions and suggestions given by them.

DATA COLLECTIONS:

The data collection is of two types. They are:

1. Primary data

2. Secondary data

Primary source of data:

Meaning: Primary sources of data are the data which needs the

personal efforts of collect it and which are not readily available.

Primary sources of data are the other type of sources through which

the data was collected.


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Following are few ways in which the data was collected:

1. Questionnaires: Its set of questions on a sheet of paper was

being was being given to the respondents of fill it, based on

which data was interpreted.

2. Direct interviewing: Direct interviewing involved the

process where I asked the Questions directly to the retailers and

got the feedback.

Secondary sources of data:

Secondary sources are the other important sources through

which the data were collected. These are the readily available sources

of the data where one had needed not put much effort.

To collected because it is already been collected and part in an

elderly manner by some researchers, experts and specialties.

The Secondary sources helpful for study were:

Text books like marketing management research methodology

advertisement and sales promotion etc.

1. Internet was made use for the collection of the data.

2. News papers were also referred.

3. Business magazines were also referred.

4. Some journals were also referred.

5. Library survey:


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This was also undertaken for the collection of data. This type of

research is based on books, periodical, journals, documentation,

and secondary data etc. which are available in the library.

Sample size:

By using convenient random sampling technique 100 customers

are selected for the purpose of the study. Direct questionnaire is

used to survey the customers.

Limitation of the study:

The study is restricted in scope of owing to the following

limitations:

Due to constraint of time only city of Hyderabad is selected

and so it cannot claim to be a comprehensive study of

population.

The sample size is restricted to 100 respondents.

The data is obtained through a structured questionnaire and it

has its own limitations in its analysis and interpretation.

Some respondents did not provide the requisite information

pertaining to the questionnaire.

As the study undertaken in the year 2006.


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RESEARCH DESIGN

Preliminary Survey:

A Preliminary survey was conducted with a sample size of 100

customers. For this purpose a questionnaire was designed & data was

collected randomly

Sample Size: 100 Customers

Research Tool:

Questionnaire (A Structure of non-designed questionnaire was

designed. It consists of the both Open-ended & Close ended questions.

Data Collection Method:

Survey Method include both Primary & Secondary data

Primary Data:

Primary data was collected by Direct interviewing the target

customers with questionnaire.

Secondary Data:

Secondary data was collected Business Magazines, Journal, News

papers, Company Web site and other related literature.


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The Legend of Hero Honda:

What 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 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. This is proved by the company's sales

over the years :1997-1998 96,200 units

1998-1999 5,30,600 units1999-2000 7,61,210 units

2000-2001 10,29,555 units2001-2002 14,25,195 units2002-2003 16,77,537 units2003-2004 20,70,147 units

2004-2005 26,21,400 units2005-2006 30,00,751 units

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.In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We

will continue to make every effort required for the development of the motorcycle

industry, through new product development, technological innovation, and investment

in equipment and facilities and through and through efficient management."


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Mission Statement:

We, at Hero Honda, are continuously striving for synergy

between technology, systems, and human resources to provide

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, constantly innovate

products and processes, and develop teams that keep the momentum

going to take the company to excellence in the new millennium.

An Environmentally and Socially, Aware Company:

At Hero Honda, our goal is not only to sell you a bike, but also to

help you every step of the way in making your world a better place to

live in. Besides its will to provide a high-quality service to all of its

customers, Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the important

issues.

Hero Honda has been strongly committed not only to

environmental conservation programmers but also expresses the

increasingly inseparable balance between the economic concerns and

the environmental and social issues faced by a business: businesses

must not grow at the expense of mankind and mans future but rather

must serve mankind.

HERO HONDA PASSPORT PROGRAME:

The Hero Honda Passport Program is an initiative designed

specially for you. A first of its kind Customer Relationship Program in

the Indian two-wheeler industry, this unique Program is our way of

saying that you are special to us. It is part of our effort to build and

strengthen the relationship between us that begins when you start

using a Hero Honda motorcycle.

As the over half a million current members have learnt, the Hero

Honda Passport opens for you a world full of exciting rewards and


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benefits. And with its presence in over 600 authorized Hero Honda

Dealerships and Service Centers, no matter where you go, you well

always find a friend in us.

JOINT VENTURES:

Hero entered a joint venture for technical and financial

participation with one of the worlds largest automotive makers, Honda

Motor Company Limited of Japan, in 1984 for the manufacture of 100cc

motorcycles in India.

Scope of Warranty:

Hero Honda Motors Limited warrants all its motorcycles

manufactured / assembled in Dharuhera Plant, distributed in India &

sold through its authorized dealers to be free, under normal use and

condition, from any defect both in material & workmanship, subject to

the following terms and conditions.

Warranty on Proprietary Items:

Warranty on proprietary items like tires, tubes & battery etc. will

be directly handled by the respective Original Equipment

Manufacturers (OEMs) except AMCO for batteries and Dunlop / Falcon

for tires, tubes. In case of any defect in proprietary items, other than

the above two mentioned OEMs the dealer must approach the branch

office / dealer of the respective manufacturers.

For AMCO batteries and Dunlop/Falcon tires, tubes claims will be

accepted at out Authorized Dealership/Service Centers, w.e.f 1st

May2002, as per the mutually agreed terms and conditions between

Hero Honda and these two OEMs. While for other OEMs in case the

claim is not accepted for any invalid reason, then the claim along with


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the refusal note from the OEM can be sent to the warranty section at

Gurgaon Plant after due recommendation of the area service engineer.

If any of the six free services or subsequent paid service is not

availed as per the recommended schedule given in the owners

manual

If Hero Honda recommended engine oil is not use

For cosumables like oil, grease etc. used during free services or

used during warranty repairs.

If any part of the vehicle is tanpered/repaired by unauthorized.

For motor cycles not used in accordance with the owners manual

supplied with each motor cycle on hero Honda.

All hero Honda motor cylces are warranted for the period of 2 years

or 30000 kms from the date of purchase which ever is earlier. It is

mandatory for the customer to avail all free & paid services as per

the recommended schedule to be eligible for the warranty benefits.

The customer has to ensure that each paid service is availed within

60 days from the date of previous services or as per the

recommended schedule. If a defect is observed in any Hero Honda

motorcycle, Hero Hondas only obligation is to repair or replace

those parts which is to be considered to be the cause of malfunction

free of charge of both labour & material, when Hero Honda

acknowledges that such malfunction has not come out of misue or

improper handling etc. such defective motorcycle should be brought

to the nearest Hero Honda dealer service center by the owner for

necessary inspection & subsequent repairs.


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Hero Group Profile:

"Hero", the brand name symbolizing the steely ambition of the Munjal

brothers, came into being in the year 1956. From a modest manufacturer of

bicycle components in the early 1940's to the world's largest bicycle

manufacturer today, the odyssey was fueled by one vision - to build long-lasting relationships with everyone, including workers, dealers and vendors.

This philosophy has paid rich dividends through the years.

Hero, a name synonymous with two wheelers in India is today a multi-unit,

multi-product, geographically diversified Group of companies. Through fully

integrated operations, the Munjals roll their own steel, make critical

components such as free wheels for their bicycles, and have the foresight to

simultaneously diversify into myriad ventures, like product designing, IT

enabled services, finance and insurance, just to name a few.

Like every success story, Hero's saga contains an element of

spirit and enterprise; of achievement through grit and determination,


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coupled with vision and meticulous planning. Throughout its success trail,

the Hero Group and its members have displayed unwavering passion of

setting higher standards for themselves and delivering simply the best to

their customers.

The Hero Group philosophy is: "To provide excellent

transportation to the common man at easily affordable prices and to

provide total satisfaction in all its spheres of activity." Thus apart

from being customer-centric, the Hero Group also provides its employees

with a fine quality of life and its business associates with a total sense of

belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group

and it has become a way of life and a part of the work culture of the Group.

This is what drives the Group to seek newer vistas, adopt faster technology

and create quality driven products to the utmost satisfaction of customers,

partners, dealers and vendors.

Today the Hero Group has a number of accolades and achievements to its

credit yet consumer requirements and newer technologies provide fresh

challenges every day, and at Hero the wheels of progress continue to turn...

BOARD OF DIRECTORS

Chairman Mr. Brijmohan Lall Munjal

Managing Director Mr. Pawan Munjal

Joint Managing Director Mr. Toshiaki Nakagawa

Wholetime Director Mr. Takao Eguchi

Non-Executive Director Mr. Satyanand Munjal

Non-Executive Director Mr. Om Prakash Munjal

Non-Executive & Mr. Satoshi Toshida


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Independent Director

Non-Executive &

Independent DirectorMr. Motohide Sudo

Non-Executive &

Independent DirectorMr. Narinder Nath Vohra

Non-Executive &

Independent DirectorMr. Pradeep Dinodia

Non-Executive &

Independent DirectorGen. (Retd.) Ved Prakash Malik

Non-Executive &

Independent Director Mr. Analjit Singh

Non-Executive &

Independent DirectorDr. Pritam Singh

Non-Executive &

Independent DirectorDr. Vijay Laxman Kelkar

Non-Executive &

Independent DirectorMs. Shobhana Bhartia

Non-Executive &

Independent DirectorMr. Sunil Bharti Mittal

MILESTONES:

YEAR EVENT

2003 Winner of the Review 200 - Asia's Leading

Companies Award (3rd Rank amongst the top 10

Indian Companies)

Most Respected Company in Automobile Sector by

Business World Bike Maker of the Year by Overdrive

Magazine


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2002 Bike Maker of the Year by Overdrive Magazine

Winner of the Review 200 - Asia's Leading

Companies Award (4th Rank amongst top 10 Indian

Companies)

Sponsored 'India-England Women's Cricket Series'

Sponsored 'Hero Honda Masters Golf Championship'

Dawn mode introduced Entrepreneur of the Year

Award conferred upon the Chairman, Mr. Brijmohan

Lall by Business Standard Company of the Year for

Corporate Excellence by the Economic Times

Ambition model introduced Giants International

Award to the Chairman, Mr. Brijmohan Lall in the

field of Business & Industry

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj

Singh, Harbhajan Singh and Zaheer Khan as Brand

Ambassadors

Business Leadership Award conferred upon the

Chairman, Mr. Brijmohan Lall by MadrasManagement Association

Mr. Pawan Munjal, Managing Director of Hero Honda

Motors Ltd. Appointed as the Chairman of Asian PGA

Tour BoardofDirectors Sponsored 'Second Indian

Television Academy Award'


Winner of the Review 200 - Asia's Leading

Companies Award (9th Rank amongst top 10 Indian

Companies)

Passion model introduced Achieved OM - One million

productionin one single year Joy Model launched

Entrepreneur of the Year Award conferred upon


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the Chairman, Mr. Brijmohan Lall by Ernst & Young

50,00,000th Bike produced

'Three Leaves Award for Environment' to Hero

Honda by Centre for Social & Environment Green

Rating Project.

Sponsored '21st Cinema Express Award'

Sponsored 'India-England Test Series'

Sponsored 'First Indian Television Academy Award'

2000 Sponsored 'Hero Honda NKP Salve Challenger

Trophy'

Sponsored 'Stardust Hero Honda Millennium Honors

Award'


Appointed Sourav Ganguly & Hrithik Roshan as

Brand Ambassadors

Environment Performance Award to Hero Honda

Dharuhera Plant by Haryana State Pollution Control

Board

Environment Management System of Gurgaon Plant

certified ISO-14001 by DNV Holland

4,000,000th motorcycle produced

Sponsored '20th Cinema Express Award'

Splendor declared World No. 1 - largest selling

single two-wheeler model

Passport Programme - Customer Relation

Programme launched

Sir Jehangir Grandee Medal for Industrial Peace

conferred upon the Chairman, Mr. Brijmohan Lall by

XLRI, Jamshedpur

1999 25,00,000th motorcycle produced CBZ model


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launched

Sponsored '7th World Cup Cricket tournament' at

England

Environment Management System of Dharuhera

plant certified with ISO 14001 by DNV Holland

Raman Munjal Memorial Hospital inaugurated


Suhana Safar - Customer Relation Programme

launched

30,00,000th Motorcycle produced in December

Best Productivity Award for the best

performance in Automobile & Tractor Sector by

National Productivity Council presented by Vice

President of India

1998 20,00,000thmotorcycleproduced Hero Honda

Masters Golf Championship started Business Leader

of the Year conferred upon the Chairman, Mr.

Brijmohal Lall by Business Baron

1997 15,00,000th motorcycle produced Street model

introduced

Foundation stone of Raman Munjal Vikas Kendra

foundation stone laid by Chief Minister of Haryana

Gurgaon plant inaugurated by Honda President

Sponsored 6th Women World Cup Tournament

Distinguished Entrepreneurship Award

conferred upon the Chairman Mr Brijmohan Lall By

PHD Chamber of Commerce & industry

1200 motorcycles per day production started

1996 Hero Honda becomes first company to serve Army,

Navy & Air Force with its 100cc motorcycles


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1000 motorcycles per day production started

1995 800 motorcycles per day production started

National Award for Outstanding contribution to

the Development of Indian Small Scale

Industry (NSIC Award - Presented by President of

India)

The Analyst Award 1995 presented to Hero Honda

Motors Limited on being ranked 9th amongst the

most investor rewarding Companies in India

1994 Splendormodelintroduced10,00,000th motorcycle

produced

The Businessman of the Year award is conferred

upon the Chairman Mr Brijmohan Lall - by Business

India Group of Publications

1993 750,000thMotorcycleproducedSponsored Hero Group

- Five Nations Cricket Tournament

1992 A school named Raman Kant Vidya Mandir

inaugurated in memory of the first Managing

Director of Hero Honda Motors Limited

1991 500,000thmotorcycleproduced CD 100SS model

introduced

MobileServiceWorkshoplaunched

Economic Times-Harvard Business School

Award for Excellent Governance to Hero Honda

Motors Ltd.

Hero Honda moved into India's Top 100 Companies

- Ranked 87

1990 400,000thMotorcycleproducedPegasus Award from

Readers Digest for campaigning 'One Litre Road'

1989 Sleek model introduced 300,000th Motorcycle

produced

1988 Hero Honda Family Club formed at Gurgaon


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200,000th motorcycle produced

1987 Engine plant started 1,00,000th Motorcycle

produced

1986 Quality circles launched

1985 First motorcycle (Model CD 100) produced200 motorcycles per day production

1984 Company incorporated Technical collaboration

signed

Foundation stone laid

1983 Joint Collaboration Agreement with Honda Motor Co.

Ltd. Japan, signed Shareholders Agreements signed

New Delhi, April 01, 2006: Hero Honda, the World No.1 two wheeler

manufacturer for the fifth year in a row, has set yet another precedent for

the Indian two-wheeler industry by recording incredible sales in FY 2005-06.

The companys sales crossed the landmark 3-million mark, for the first time

ever in the Indian two-wheeler industry tallying to 30,00,751 units for FY

05-06.The company recorded sales of 2,72,312 units during the month of


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March 2006out of which 2,64,816 came out of motorcycles sales and 7,496

were fromscooters. The sale of motorcycles grew by a significant 14.34% as

compared to the corresponding month last year. The company sold 2,64,816

units of motorcycles in March 2006 as against 2,31,593 units in March

2005.Hero Hondas achievement of the landmark 3 million plus sales

(including motorcycles and scooters) within a single year is an extraordinary

feat considering the growing competition in the two-wheeler market and is

certain to redefine industry standards. Expressing his delight over the

companys performance Mr. Pawan Munjal, Managing Director, Hero Honda

Motors Ltd. said, Our sales performance of 3 million motorcycles during the

financial year 2005-06 is a testimony to the success of our customer centric

business philosophy. Month over month, our sales have been witnessing an

upsurge signifying the success of our new models launched recently. With

the Financial Year ending Hero Hondas cumulative sales for motorcycles for

the period April 05-March 06 has also registered a significant growth of

13.72% over the corresponding period in the previous year. The companys

cumulative sales tally for motorcycles has thereby increased to 29, 81,175

units, a jump from 26,21,400 units in 2004-05.During the month of Marchthe company also announced national launch of

Pleasure, the companys first gearless scooter in the Indian market. The

company has already sold 19,576 units of the scooter since its launch in

January 2006.


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AWARDS & ACCOLADES

Awards & Recognitions to Hero Honda Motors Limited

2006 Certificate of Export Excellence for outstanding export performance

during 2003-04 for two-wheeler & three- wheelers - Complete (Non

SSI) by Engineering Export Promotion Council

The NDTV Profit Car & Bike Awards 2006 in the following category -

-Bike Maker of the Year

- Bike of the Year - Achiever

- Bike of the Year - Achiever (up to 150 cc category)

- Bike of the Year - Glamour (up to 125 cc category)

- NDTV Viewers' Choice Award to Glamour in the bike category

2005 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler

brand by CNBC in the 'Automobiles' category

Bike Maker of the Year Award by Overdrive Magazine

ICWAI National Award for Excellence (Second) in Cost Management

2004 in the private sector category by ICWAI

10th Motilal Oswal Wealth Creator Award for as the most consistent

wealth creator for the period 1991-2005

2004 Winner of the Review 200 Asias Leading Companies Award (3rd


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Rank amongst the top 10 Indian companies)

GVC Level 1 (Highest Rating) by CRISIL for corporate Governance

Adjudged as the Best Value Creator Large Size Companies 2003-04

by The Outlook Money

Corporate Excellence Award 2004 by Indian Institute of Materials

Management

Adjudged as the Organization with Innovative HR Practices by HT

Power Jobs for HR Excellence

ICSI National Award for Excellence in Corporate Governance 2004 by

The Institute of Company Secretaries of India

2003 Winner of the Review 200 Asias Leading Companies Award (3rd


Most Respected Company in Automobile Sector by Business World

Bike Maker of the Year by Overdrive Magazine


Winner of the Review 200 Asias Leading Companies Award (4th


Company of the Year of ET Awards for Corporate Excellence

Ranked 4th in Overall Best Managed Company category, ranked 3rd

in Best Financial Management and Best Operational Efficiency

category, ranked 6th in Overall Best Investor Relations category, by


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Asia money

Highest Wealth Creating Company of the Year Award by the Money

GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance


Winner of the Review 200 Asias Leading Companies Award (9th

Rank amongst the top 10 Indian Companies)

Winner of Three Leaves Award for showing Corporate Environment

Responsibility in the Automobile Sector by Centre for Science &

Environment

1999 National Productivity Award for the Best Productivity Award in the

category of Automobile & Tractor presented by Vice President of India

1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on

being ranked 9th amongst the most investor rewarding companies in

India

1991 Economic Times-Harvard Business School Award for Corporate

Performance to Hero Honda Motors Ltd.

SUCCESFUL MODELS OF HERO HONDA

The world's best-selling motorcycle just got better. The Splendor+, a

bike that will stop you right in your tracks. Both by its looks and

performance. Needless to add, owning a Splendor+ means a lot of

other things too. Like getting admiring looks. Or the pride of riding a


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motorcycle that meets the pollution control standards of this decade.

That's the Splendor+. The new face of trust.

9 New two-tone body colors PLUS Body color rear view mirrors PLUS

Aluminum die cast rear grip PLUS Heat protector on the muffler. All

this and much more to make the biker and his bike stay married

forever.

Presenting CD deluxe, the stylish, true value 100 cc motorcycle from

Hero Honda. Encompassing the legendary Hero Honda values of fuel

efficiency, economy and rock solid dependability.

A smooth ride over the toughest of roads with maximum fuel

efficiency and at an affordable price, now you can bid goodbye

to all your commuting problems!


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Chapter 3

PROFILE OF PHOENIX MOTORS

History

Advertising Strategy of Phoenix Motors

Sales Strategy of Phoenix Motors

Warranty on Proprietary Items


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PROFILE OF PHOENIX MOTORS

Phoenix motor Pvt. Ltd is dealership type of business. Phoenix

motors pvt. Ltd is established on 21 march 2003. The business is

running by only one man. The chair person is CH.MADHUMATHI, the

managing director is P. Murthi, and the marketing manager is P.

Naresh, the firm is located at Hubsiguda in Hyderabad.

Generally the sales will be either on cash basis or on installment

basis. . Banks like ICICI, HDFC and CENTURION are providing loans to

customers.

Advertising strategy of phoenix motors:

They are giving the ads through Newspapers, wall paintings,

hoardings, and field staff. They are upgrading sales by introducing the

schemes, group bookings, institutional sales, customer door-to-door

activities.

Categorization of staff members:

Staff members are categorized for technicians, 10 members are

allotted for field staff, 5 members are recruited for sales person, three

persons are placed for evaluating the spare parts, three members are

allotted for marinating accounts and one person for cash transactions

and other members are allotted for remaining works.

Sales strategy of phoenix motors:

Averagely they are selling 20 vehicles per day. Phoenix motors

Pvt Ltd is A.P NO.1 dealership in sales and other and other activities. Itis a QLQD (quality leader through quality dealer).

Customer Relationship:

To entertain the customer the show room providing a customer

lounges having pool game, Internet facility and Television.


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Warranty on Proprietary Items:

Warranty on proprietary items like tires, tubes and battery etc,

will be directly handled by the respective Original Equipment

Manufacturers (OEMs) except AMCO for batteries and Dunlop/Falcon

for tires, Tubes. In case of any defect in proprietary items, other than

the above two mentioned OEMs the dealer must approach the branch

office/dealer of the respective manufacturers. For AMCO batteries and

Dunlop/Falcon tires, tubes claims will be accepted at our Authorized

Dealership / Service Centers, w.e.f 1st may 2002, as per the mutually

agreed terms and conditions between Hero Honda and these two

OEMs. while for other OEMs in case the claim is not accepted for any

invalid reason, then the claim along with the refusal note from the

OEM can be sent to the warranty section at Gurgaon Plant after due

recommendation of the area service engineer.

If any of the six free service or subsequent paid service is not

availed as per the recommended schedule given in the owners

manual.

If Hero Honda recommended engine oil is not used.

To normal wear & tear components like bulbs, electrical wiring,

filters, spark plugs, clutch plates, brake shoes, fasteners, shims,

washers, oil seals, gaskets, rubber parts (other than tires &

tubes), plastic components, chain & sprockets and in case of

wheel rim misalignment or bend.

If there is any damage due to modification or fitting of

accessories other than the ones recommended by Hero Honda.

If the motorcycle has been used in any competitive events like

track races or rallies.

If there is any damage to the painted surface due to industrial

pollution or other extraneous factors.


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For claims 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 motorcycle.

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

purposes as taxi etc.

For maintenance repairs required due to misuse while driving or

due to adulteration of oil, petrol or due to bad road conditions.

For consumables like oil, grease etc. used during free services of

used during warranty repairs.

If any part of the vehicle is tampered / repaired by unauthorized

persons / workshops etc.

For motorcycles not use in accordance with the owners manual

supplied with each motorcycle by Hero Honda.

All Hero Honda motorcycles are warranted for a period of 2 years

or 30,000 km from the of purchase, whichever is earlier. This is i.e. 1 st

April 2001. It is mandatory for the customer to avail all free & paid

services as per the recommended schedule to be eligible for the

warranty benefits. The customer has to ensure that each paid service

is availed recommended schedule. If a defect is observed in any Hero

Honda motorcycle. Hero Hondas only obligation / liability is to repair or

replace those part (s) which is / are considered to be the cause of

malfunction free of charge of both labor & material, when Hero Honda

acknowledges that such malfunction has not come out of improper

handling etc. such defective motorcycle should be brought to the


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nearest. Hero Honda dealer / authorized service centre by the owner

for necessary inspection & subsequent repairs.

Chapter 4

DATA ANALYSIS &

INTERPRETAION


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AGE GROUPS OF THE RESPONDENTS:

The below table shows the age group of the respondents

surveyed.

(SOURCE: FIELD INVESTIGATION)

AGE GROUPS NO OF RESPONDENTS

20-25 58

25-30 26

30-35 11

Above 35 5

Total 100


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AGE GROUP OF RESPONDENTS

58

26

11

5

0

10

20

30

40

50

60

70

20-25 25-30 30-35 Above 35

NO OF RESPONDENTS

Findings:

From the above table 58 of the respondents belong to the age

group of20-25 years, 26 f the respondents belong to the age group of

25 to 30 years, 11% of the respondents belong to the age group of 30

years to 35 years and 5% of the respondents are above or equal to 35

years.

OCCUPATION OF THE RESPONDENTS:

The below table shows the type of occupation of the respondents surveyed:

TYPE OF OCCUPATION NO. OF RESPONDENTS

STUDENT 42

PROFESSIONAL 0

EMPLOYEES 45

BUSINESSMEN 13

TOTAL 100(SOURCE: FIELD INVESTIGATION)


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OCCUPATION OF RESPONDENTS

42

0

45

13

0

5

10

15

20

25

30

35

40

45

50

STUDENT PROFESSIONAL EMPLOYEES BUSINESSMEN

NO. OF RESPONDENTS

Findings:

From the above table, 45% of the respondents are employees, 42% of the

respondents are students, 13% are Businessmen and 0% is Professional

TYPE OF THE MOTOR CYCLE PURCHASED:

The below table shows the type of the motor cycle purchased among various brands

available:

Type of motor cycle No. of respondents

Hero Honda 51

Baja 25

TVS 8

Yamaha 5

others 11

Total 100


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Findings:

From the above table 51% of the respondents are Hero Honda owners, 25% are Bajaj,

11% are others and 8% are using TVS, 5% are Yamaha vehicles.

SOURCES OF INFORMATION:

The below table shows the source of information from where the respondent got before

purchasing the vehicle:

SOURCES OF INFORMATION NO. OF RESPONDENTS

ADVERTISEMENTS 45

FRIENDS 44


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DEALERS 9

OTHERS 2

TOTAL 100(SOURCE: FIELD INVESTIGATION)

SOURCES OF INFORMATION

45%

44%

9%2%

ADVERTISEMENTS

FRIENDS

DEALERS

OTHERS

SATISFACTION WITH THE VEHICLE:

The following table shows the satisfaction of the respondents on the vehicle usage:

OPTIONHERO

HONDA BAJAJ TVS YAMAHA OTHERS


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EXCELLENT 15 6 0 2 2

GOOD 34 17 7 2 7

FAIR 2 2 1 1 2

POOR 0 0 0 0 0(SOURCE: FIELD INVESTIGATION)

SATISFACTION WITH THE VEHICLE

15

6

02 2

34

17

7

2

7

2 21 1

20 0 0 0 0

0

5

10

15

20

25

30

35

40

HERO

HONDA

BAJAJ TVS YAMAHA OTHERS

EXCELLENT

GOOD

FAIR

POOR

Findings:

From the above table 34% respondents of Hero Honda more satisfied and 2%

least satisfied.17% of Bajaj respondents more satisfied and 2% of least satisfied, 7% of

TVS respondents more satisfied and 1% least satisfied,2% of Yamaha respondents more

satisfied and 1% least satisfied,7% of other respondents more satisfied and 2% leastsatisfied.

RESPONDENTS WHO SUGGESTED OTHERS TO BUY THEIR VEHICLE:


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The below table show the respondents who are suggesting others to buy their vehicle

OPINION OF THE

RESPONDENT NO. OF RESPONDENTS

YES 88

NO 12(SOURCE: FIELD INVESTIGATION)

RESPONDENTS WHO SUGGESTED OTHERS TO BUY

THEIR VEHICLE

88%

12%

YES

NO

Findings:

From the above table only 88% of the respondents are suggesting others to buy their

vehicle and 12% are rejecting to suggest others.


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RESPONDENT IMPORTANCE TO MILEAGE:

The below table show the respondents importance on the mileage of their vehicle.

RESPONDENTSIMPORTENCE 1 2 3 4 5 6

NO. OFRESPONDENTS 57 22 7 6 4 4


IMPORTENCE OF THE RESPONDENTS TO MILEAGE

57

22

7 64 4

0

10

20

30

40

50

60

1 2 3 4 5 6

IMPORTENCE

RESPONDENTS

NO. OF RESPONDENTS

Findings:

From the above table 57% more importance to the mileage, 4% least importance to themileage and rest lie among them.


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RESPONDENT IMPORTANCE TO PRICE:

The below table show the respondents importance on the price of their vehicle:




IMPORTENCE OF THE RESPONDENTS TO PRICE

3

10

29

35

20

3

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6

IMPORTENCE

RESPONDENTS

NO. OF RESPONDENTS

Findings:

From the above table 3% of respondents give more importance to the price, and 3% of

the respondents give least importance to the price and rest lie among them.


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RESPONDENT IMPORTANCE TO BRAND IMAGE:

The below table show the respondents importance on the brand image of their vehicle:




IMPORTENCE OF THE RESPONDENTS TO BRAND

IMAGE

4

17

24

30

18

7

0

5

10

15

20

25

30

35

1 2 3 4 5 6

IMPORTENCE

RESP

ONDENTS

NO. OF RESPONDENTS

Findings:

From the above table 7% give more importance to the brand image, 4% give least

importance to brand image and rest lie among them


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RESPONDENT IMPORTANCE TO PICK-UP:

The below table show the respondents importance on the pick-up of their vehicle:




IMPORTENCE OF THE RESPONDENTS TO PICK-UP

3334

19

9

4

1

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6

IMPORTENCE

RESPONDENTS

NO. OF RESPONDENTS

Findings:


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From the above table 1% give more importance to the pick-up, 33% give least

importance to pick-up and lie among them.

RESPONDENT IMPORTANCE TO DESIGN:

The below table show the respondents importance on the design of their vehicle:

RESPONDENTS

IMPORTENCE 1 2 3 4 5 6NO. OFRESPONDENTS 3 17 21 15 42 2


IMPORTENCE OF THE RESPONDENTS TO DESIGN

3

17

21

15

42

2

0

5

10

15

20

25

30

35

40

45

1 2 3 4 5 6

IMPORTENCE

RESPONDENTS

NO. OF RESPONDENTS

findings:


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From the above table 2% of the respondents give more importance to the design, 3% of

them give least importance to design and rest lie among them.

RESPONDENT IMPORTANCE TO RESALE:

The below table show the respondents importance on the resale of their vehicle:

RESPONDENTS

IMPORTENCE 1 2 3 4 5 6NO. OFRESPONDENTS 0 1 0 4 6 89


IMPORTENCE OF THE RESJPONDENTS TO RESALE

0 1 04 6

89

0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6

IMPORTENCE

RESPONDENTS

NO. OF RESPONDENTS


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Findings:

From the above table 89% of respondents give more importance to resale, 1% of the

respondents give least importance to resale and rest lie among them.

EFFECT OF ADVERTISEMENT MEDIA ON RESPONDENT:

The following table shows the effect of advertisement media on respondent

TYPE OF ADVERTISE MENT NO OF RESPONDENTS

TELEVISION 62

HOARDINGS 5

SHOW ROOMS 19

NEWS PAPER PRINTS 14(SOURCE: FIELD INVESTIGATION)


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EFFECT OF THE ADVERTISEMENT ON RESPONDENTS

62%

5%

19%

14%

TELEVISION

HOARDINGS

SHOW ROOMS

NEWS PAPER PRINTS

Findings:

From the above table 62% of the respondents are exposed to TV, 5% to Hoardings, 19%

to showrooms and 14% to newspapers.

RESPONDENTS RATE TO THE MOTOR CYCLE BRAND:

The following table shows the rate of the respondents to the motor cycle brand:

MOTORCYCLE RANK 1 RANK 2 RANK 3 RANK 4

HERO HONDA 47 3 1 0

BAJAJ 11 10 3 1

TVS 0 2 5 1

YAMAHA 1 1 2 1(SOURCE: FIELD INVESTIGATION)


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RATE GIVEN BY THE RESPONDENTS

47

31 0

11 10

310

25

11 1 2 1

0

5

10

15

20

25

30

35

40

45

50

RANK 1 RANK 2 RANK 3 RANK 4

RANK

RESPONDENTS

HERO HONDA

BAJAJ

TVS

YAMAHA

RESPONDENTS OPINION OVER THE COST OF SPARE PARTS(ALL

VEHICLES)

The following table shows the respondents opinion over the cost of spare parts

CUSTOMER OPINION NO. OF RESPONDENTS

COSTLY 48

AVERAGE 42

CHEAP 10(SOURCE: FIELD INVESTIGATION)


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COST OF SPARE PARTS

48%

42%

10%

COSTLY

AVERAGE

CHEAP

The following table shows the cost of spare parts of Hero Honda:

CUSTOMER OPINION NO. OF RESPONDENTS

COSTLY 35

AVERAGE 15

CHEAP 1(SOURCE: FIELD INVESTIGATION)


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HERO HONDA

35

15

1

0

5

10

15

20

25

30

35

40

COSTLY AVERAGE CHEAP

COST

RESPONDENTS

NO. OF RESPONDENTS

COMPARING HERO HONDA VS OTHER BRANDS:

CUSTOMER

OPINION

NO. OF

RESPONDENTS

NO. OF

RESPONDENTS

COSTLY 20 32

AVERAGE 32 40

CHEAP 10 28



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HERO HONDA VS TOTAL

20

32

10

32

40

28

0

5

10

15

20

25

30

35

40

45

COSTLY AVERAGE CHEAP

COST OF SPARE PARTS

RESPONDENTS

NO. OF

RESPONDENTS

NO. OF

RESPONDENTS

Chapter 5


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CONCLUSIONS

1. 62% of the respondents are Hero Honda owners most preferred

motorcycle brand out of various brands available.


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2. Hero Honda splendor is the most preferred model out of Hero

Honda products.

3. 35%-55% of the respondents are considering Hero Honda brand

before purchasing their vehicle.

4. Most of the respondents are getting information through friends

before purchasing the vehicle.

5. Most of the respondents have good satisfaction with their

vehicle.

6. 84% of the respondents are suggesting their vehicle to others.

7. Most of the Hero Honda users have good satisfaction with dealer

service comparing to other brands.

8. Most respondents are affecting to TV advertising media.

9. Above 60% of the respondents are giving No 1 Rate to Hero

Honda.

10. Respondents are satisfied with availability of spare parts to

greater extent.

11. More the 30% of the respondents who feel the cost of the

spare parts.


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RECOMMENDATIONS

1. The bikes recently introduced by HERO HONDA are mostly

concerned about youth. So, they should also consider middle

aged people while manufacturing.

2. Indian market is a price sensitive market so the bike should be at

minimum price with maximum quality.

3. The maintenance cost is the main burden for the middle class

people. So, care should be taken to reduce spare part prices.

4. The standard of service centers need to be improved.

5. Advertisements in Televisions, Hoardings should be increased to

attract the people.


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ANNEXURE:

BIBLIOGRAPHY

QUESTIONNAIRE


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BIBILOGRAPHY

For collection of the required information sources have been

referred.


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1. Principles of marketing -Philip Kotler & Gary Armstrong

J.C.Gandhi

2. Marketing Management -V.S.Ramaswamy &

S.Namakumari

3. Marketing Research -Tull Donald & Hawkins

4. Consumer behavior -Schiff man Leon & kanuk

Leslie

5. Internet www.herohonda.com

6. The economic times

7. Magazines Business today

Business world


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QUESTIONNAIRE

Respected sir,


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I Surya Charan, studying at Bhavans Vivekananda College. As part of

my MBA curriculum I am pursuing my project work on Consumer

behaviour on Hero Honda two wheelers at PHOENIX MOTORS Pvt Ltd.

Hence I would request you to kindly extend your cooperation in filling this

questionnaire to the fullest of your knowledge.

This information provided will be kept confidential and will be used for

academic purpose only:

_____________________________________________

Name:

1Age:

20-25( ) 25-30( ) 30-35( ) 35 and above( )

2. Occupation

Student professional

Employee Businessmen

3.what type of motor cycle was purchased by you

Hero Honda ( ) Bajaj ( ) TVS ( ) Yamaha ( ) others ( )

4. From where did you get information before purchasing your vehicle?

Advertisements( )Friends( ) Dealers( ) Others( )

5. Please tick your opinion with regard to your vehicle

Excellent Good Fair Poor

HeroHondaBajajYamahaTVSOthers


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6. Would you like to suggest your friends and relatives to buy the

vehicle which you are using?

Yes ( ) No ( )

7. How do you give importance to the following factors while

purchasing a two wheeler (Rank 1 the most important and rank 6 the

least important)

Mileage ( ) Pick UP ( ) Price ( )

Brand Image ( ) Design ( ) Resale ( )

8. To which media advertisements are you exposed most regarding to

your vehicle

TV ( ) Hoardings( ) Showrooms( ) Newspaper/prints( )

9. How do you rate the following two wheeler brands on a rank of 1 4

Yamaha( ) Bajaj ( ) Hero Honda ( ) TVS ( )

10. How did you rate the prices of spare parts of Hero Honda?

Cheap ( ) Average ( ) Costly ( )

11. How did you rate the prices of spare parts other than Hero Honda?

Cheap ( ) Average ( ) Costly ( )

surya new project 100

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