A study on Customer satisfaction Towards Hero(Hero Honda) bikes with respect to Chennai

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A study on Customer satisfaction Towards Hero(Hero Honda) bikes with respect to Chennai

  1. 1. “A study on Customer satisfaction Towards Hero(Hero Honda) bikeswith respect to Chennai” BY Murali Krishna Of A PROJECT REPORT Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION CHENNAI 600 062 MAY 2012 1
  2. 2. BONAFIDE CERTIFICATECertified that this project report titled “A study on Customer satisfaction Towards Hero(HeroHonda) bikes with respect to Chennai” is the bonafide work of Murali Krishna who carried out theresearch under my supervision. Certified further, that to the best of my knowledge, the work reportedherein does not form part of any other project report or dissertation on the basis of which a degree oraward was conferred on an earlier occasion on this or for any other candidate.INTERNAL GUIDE DEANSubmitted for the Project and Viva Examination held on ………………………..at VelTech Dr. RR & Dr. SR Technical University, Avadi, Chennai, 600062.INTERNAL EXAMINER EXTERNAL EXAMINER 2
  3. 3. DECLARATIONI, Murali Krishna (M.B.A) student of , Avadi, Chennai, wouldlike to declare that the project work entitled “A study on Customer satisfaction TowardsHero(Hero Honda) bikes with respect to Chennai “in partial fulfillment of Master ofBusiness Administration course under is original project done independently byOur Group under the guidance of ( Guide), School of Management,.Place: ChennaiDate: (.................) 3
  4. 4. ACKNOWLEDGEMENT 4
  5. 5. TABLE OF CONTENTSCHAPTERS PARTICULARS PAGE NO ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF TABLES 36-48 LIST OF CHARTS 36-48 I 1.1INTRODUCTION TO THE STUDY 10 1.2 INDUSTRY PROFILE 11-16 1.3 COMPANY PROFILE 17-24 1.4 PRODUCT PROFILE 25-27 1.6 OBJECTIVES OF THE STUDY 28 1.7 SCOPE OF THE STUDY 29 1.8 LIMITATIONS OF THE STUDY 30 II 2. REVIEW OF LITERATURE 31-33 III 3. RESEARCH METHODOLOGY 34-35 IV 4. DATA ANALYSIS AND INTERPRETATION 36-49 V 5.1 SUMMARY OF FINDINGS 50 5.2 SUGGESTIONS AND RECOMMENDATIONS 51 5.3 CONCLUSION 52 BIBLIOGRAPHY 53 5
  6. 6. LIST OF TABLESTABLE PARTICULARS PAGE NONO1 Age group of the sample 362 Income level of the sample 373 Why am I choose 384 Am I satisfied with the pricing 395 Am I satisfied with the mileage 406 Am I like bike styling 417 Am I like feel of the engine 428 Am I feel comfortable while riding 439 Am I comfortable with riding position 4410 How is the lighting while night time 4511 What is the complaint 4612 Services 4713 Rating 48 6
  7. 7. LIST OF CHARTSCHART NO PARTICULARS PAGE NO1 Age group of the sample 362 Income level of the sample 373 Why am I choose 384 Am I satisfied with the pricing 395 Am I satisfied with the mileage 406 Am I like bike styling 417 Am I like feel of the engine 428 Am I feel comfortable while riding 439 Am I comfortable with riding position 4410 How is the lighting while night time 4511 What is the complaint 4612 Services 4713 Rating 48 7
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  9. 9. A study on Customer satisfactionTowards Hero(Hero Honda) bikeswith respect to Chennai 9
  10. 10. 1.1 INTRODUCTION:- Customer satisfaction has become one of many important objectives set for productservices. The satisfaction survey is becoming the primary tool of assessing this aspect ofcustomer care. Customer satisfaction surveys provide a “snapshot of customers‟ opinions” ofone‟s product. One of the major goals of organizations is that customers and families will behighly satisfied with their entire experience in their customer visit. An organization‟spurpose is to measure, analyze, and report the degree to which they are meeting this goal withintheir organization. Measuring customers experiences is coming to be seen as much more useful thanmeasuring just the level of customer satisfaction. In our survey we have considered the customersatisfaction level towards Hero (Hero Honda) Bikes. Customer satisfaction surveys can help identify ways of improving one‟s product. Sincecustomers actively evaluate what is happening to them during the experience of care, customersatisfaction is two things: “…an indicator of quality of product, and a component of qualityproduct”. The customer‟s judgment is a very personal one; it‟s based on perceptions of carebeing responsive to customers "individual needs," rather than to any universal code ofstandards... When customers perceive motives, communication, empathy, and judgmentpositively, they will respond more positively to product. A customer satisfaction survey may beable to demonstrate that a practice is focused on quality and on improving their current service.In the end with customer satisfaction surveys, they help lead to better quality product and happiercustomers. 10
  11. 11. Industry profile • The Automobile Products of India (API) started manufacturing scooters in the country in 1949. • Now India is the second largest producer of two-wheelers in the world. • Total domestic sales in 2010-2011 are 1, 17, and 90,305. 11
  12. 12. 12
  13. 13. Indian motorcycles were manufactured from 1901 to 1953 by a company in Springfield,Massachusetts, USA, initially known as the Hence Manufacturing Company but which wasrenamed the Indian Motorcycle Manufacturing Company in 1928. The Indian factory team tookthe first three places in the 1911 Isle of Man Tourist Trophy. During the 1910s Indian becamethe largest manufacturer of motorcycles in the world. Indians most popular models were theScout, made from 1920 to 1946, and the Chief, made from 1922 to 1953.The Indian Motorcycle Manufacturing Company went bankrupt in 1953. A number of successororganizations have perpetuated the name in subsequent years, including the current companywhich has been manufacturing Indian motorcycles since 2006.HistoryEarly years – Hendee and HedströmCarl Oscar Hedström with the first prototype of Indian 13
  14. 14. 1920 Indian PowerplusThe "Indian Motocycle Co." was originally founded as the Hendee Manufacturing Company byGeorge M. Hendee in 1897 to manufacture bicycles. These were initially badged as "SilverKing" and "Silver Queen" brands but the name "American Indian", very quickly reduced tosimply "Indian", was adopted by Hendee from 1898 onwards because it gave better productrecognition in export markets. Carl Oscar Hedström joined in 1900. Both Hendee and Hedströmwere former bicycle racers and manufacturers, and they teamed up to produce a motorcycle witha 1.75 bhp, single-cylinder engine in Hendees home town of Springfield. The bike wassuccessful and sales increased dramatically during the next decadeIn 1901, a prototype and two production units of the diamond framed Indian Single weresuccessfully designed, built and tested. The first Indian motorcycles, featuring chain drives andstreamlined styling, were sold to the public in 1902. In 1903, Indians co-founder and chiefengineer Oscar Hedström set the world motorcycle speed record (56 mph). In 1904 the companyintroduced the deep red color that would become Indians trademark. Production of Indianmotorcycles then exceeded 500 bikes annually, rising to a peak of 32,000 in 1913. The enginesof the Indian Single were built by the Aurora Firm in Illinois under license from the HendeeMfg. Co. until 1906. 14
  15. 15. Competitive successesIndian 1911In 1905, Indian built its first V-twin factory racer, and in following years made a strong showingin racing and record-breaking. In 1907 the company introduced the first street version V-twinand a roadster styled after the factory racer. The roadster can be distinguished from the racers bythe presence of twist grip linkages. One of the firms most famous riders was Erwin"Cannonball" Baker, who set many long-distance records. In 1914, he rode an Indian acrossAmerica, from San Diego to New York, in a record 11 days, 12 hours and ten minutes. Bakersmount in subsequent years was the Powerplus, a side-valve V-twin, which was introduced in1916. Its 61ci (1000 cc), 42 degree V-twin engine was more powerful and quieter than previousdesigns, giving a top speed of 60 mph (96 km/h). The Powerplus was highly successful, both as aroadster and as the basis for racing bikes. It remained in production with few changes until 1924.Competition success played a big part in Indians rapid growth and spurred technical innovation,as well. One of the American firms best early results came in the Isle of Man TT in 1911, whenIndian riders Oliver Cyril Godfrey, Franklin and Moorehouse finished first, second and third. 15
  16. 16. Indian star Jake DeRosier set several speed records both in America and at Brooklands inEngland, and won an estimated 900 races on dirt and board track racing.] He left Indian forExcelsior and died in 1913, aged 33, of injuries sustained in a board track race crash withCharles "Fearless" Balke, who later became Indians top rider. Work at the Indian factory wasstopped while DeRosiers funeral procession passed.Oscar Hedstrom left Indian in 1913 after disagreements with the Board of Directors regardingdubious practices to inflate the companys stock values. George Hendee resigned in 1916 16
  17. 17. Company profile 17
  18. 18. 18
  19. 19. “Hero” is the brand name used by the Munjal brothers for their flagship company Hero CyclesLtd. A joint venture between the Hero Group and Honda Motor Company was established in1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda groupboth own 26% stake in the Company. In 2010, it was reported that Honda planned to sell itsstake in the venture to the Munjal family.During the 1980s, the company introduced motorcycles that were popular in India for their fueleconomy and low cost. A popular advertising campaign based on the slogan Fill it - Shut it -Forget it that emphasised the motorcycles fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years(1984–2010) has come from the Japanese counterpart HondaHero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana andat Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes peryear. Hero MotoCorp has a large sales and service network with over 3,000 dealerships andservice points across India. Hero Honda has a customer loyalty program since 2000, called theHero Honda Passport Program.The company has a stated aim of achieving revenues of $10 billion and volumes of 10 milliontwo-wheelers by 2016-17. This in conjunction with new countries where they can now markettheir two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve10 per cent of their revenues from international markets, and they expected to launch sales inNigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming 19
  20. 20. half decade, the company was going to build their fourth factory in South India and their fifthfactory in Western India. There is no confirmation where the factories would be built.HistoryHero MotoCorp was started in 1984 as Hero Honda Motors Ltd 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. 2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched. 2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched. 20
  21. 21. 2005 -- Hero Honda motorcycle 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.August-- Hero and Honda part company, thus forming Hero MotoCorp and Honda moving out ofthe Hero Honda joint venture. November-- Hero launched its first ever Off Road Bike NamedHero "Impulse". 21
  22. 22. Termination of Honda joint ventureIn December 2010, the Board of Directors of the Hero Honda Group has decided to terminate thejoint venture between Hero Group of India and Honda of Japan in a phased manner. The HeroGroup would buy out the 26% stake of the Honda in JV Hero Honda Under the joint ventureHero Group could not export to international markets (except Sri Lanka) and the terminationwould mean that Hero Group can now export. Since the beginning, the Hero Group relied ontheir Japanese partner Honda for the technology in their bikes. So there are concerns that theHero Group might not be able to sustain the performance of the Joint Venture alone.]Hero MotoCorpThe new brand identity and logo, Hero MotoCorp, was developed by the London firm WolffOlins.] The logo was revealed on 9 August 2011 in London, the day before the third test matchbetween England and India.Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use anyvendors for its components instead of just Honda-approved vendors.Company performanceDuring the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over lastyear. In the same year, the company had a market share of 57% in the Indian market. HeroHonda sells more two wheelers than the second, third and fourth placed two-wheeler companiesput together. Hero Hondas bike Hero Honda Splendor sells more than one million units per year. 22
  23. 23. RecognitionLogo of Hero Honda, as the company was known till Aug. 2011The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the13th position among the brands in India.Motorcycle models Sleek Street Achiever Ambition 133, Ambition 135 CBZ, CBZ Star, CBZ Xtreme CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Karizma, Karizma R, Karizma ZMR FI Passion, Passion Plus, Passion Pro Pleasure Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG,Splendor PRO 23
  24. 24. Hero Impulse launched in 2011 after the separation of hero and Honda. Its Indias first off-road and on road Bike.SuppliersIt is reported Hero Honda has five joint ventures or associate companies, Munjal Showa, AGIndustries , Sunbeam Auto, Rockman Industries and Satyam Auto Components, that supply amajority of its components. 24
  25. 25. Product profileHero moto corp is introducing the number of products every year. List of theavailable products in the market are1) Maestro2) Impulse 25
  26. 26. 3) CD Dawn4) CD Deluxe5) Pleasure6) Splendor +7) Splendor NXG8) Passion Pro9) Super Splendor10) Glamour11)Splendor Pro12)Glamour PGM Fi13)Achiever14) CBZ Extreme15) Hunk16) Karizma17) Karizma ZMR 26
  27. 27. 27
  28. 28. Objective of the study • To assess the what are the factors influencing to purchase the Hero (Hero Honda) bikes • To assess the customer satisfaction of the hero (Hero Honda) Bikes 28
  29. 29. Scope of the study • To know the customer Tastes & preferences in the bikes • To improve the sales • To improve the market share 29
  30. 30. Limitations of survey• Time constrains• Sample size is 100 only out of cores of customers• Survey is restricted to Chennai only 30
  31. 31. Literature reviewAccording to the brand trust report 2011 hero Honda (hero) ranked as a top 13thbrand among the world brandsThe Brand Trust Report is out and quite comforting for Indian Automobile Manufacturers as 4 ofthe Top 15 Brands are automobile manufacturers in whole or part.The biggest pie here goes to Tata (No. 2) which continues to be a trusted brand in India throughits diversified interests from salt to power. Maruti (No. 7) is the top solely automobile brandclosely followed by 2 wheeler giants Bajaj (No. 12) and Hero Honda (No. 13)Premium segment is lead by BMW (No. 33) which comes ahead of volume player Hyundai and(surprise, surprise!) arch-rival Mercedes Benz (No. 81). The BMW brand reputation is backed byincreasing domination in market and will be a cause of concern for Mercedes which hasmaintained itself as the face of luxury India.There is clearly an indication in the report that automobiles are slowly becoming a part ofeveryday life of consumers rather than mere symbol of status and luxury providing stiffcompetition to beverage and electronics brands.Quote: 31
  32. 32. In a study published by „Trust Research Advisory (TRA)‟, a leading research organizationdedicated to understanding and simplifying concepts related to Trust, Nokia stands at No 1position, followed by Tata and then by the Japanese electronics giant, Sony at the third spot. TheKorean duo of LG and Samsung plugged in at the fourth and the fifth positions respectively,while Reliance brand stands sixth. Maruti drives in at the seventh position, followed by the stateinsurance agency, LIC. Airtel, Indias largest telecom services company dialed in at the ninthposition, with Titan rounded up the Top 10 of Indias Most Trusted Brands at the tenth position.The Brand Trust Report, India Study, 2011 is the result of years of detailed research tounderstand trust which included several hundred hours of discussions with communicationexperts and behavioural scientists. On this basis TRA created a proprietary Trust Matrixcomprising 61 different components. Based on this proprietary Trust Matrix, TRA launched asyndicated primary research on Brand Trust across 9 cities in India covering 2310 respondentswho were classified into the influencer category.The most intensive study on Brand Trust undertaken in the country, the study generated nearly10, 00,000 data-points and 16,000 brands. Indian Statistical Institute helped create a statisticallyrobust Brand Trust Index which has been used to hierarchically rank Indias Most TrustedBrands. Auto Manufacturers in Top 100 Brands: Tata Motors (2) Maruti (7) 32
  33. 33. Bajaj (12)Hero Honda (13)BMW (33)Hyundai (43)TVS (54)Toyota (66)Mahindra (68)Ford (74)Yamaha (75)Mercedes (81) 33
  34. 34. Research methodologyResearch problem: - conducting a study on the customer satisfaction of thehero motocorp ltd (hero Honda) bikes.Research designPopulation size: - hero Honda sells the millions of the bikes every year. Duringthe last financial year hero sells the more than 6 million bikes across the world.And this company is existing from 1984.several customers not use their bikes after5-15years. So we can not estimate the population size.Sample size: - size of the sample is 100. And it is taken by the instructions ofthe faculty.Convenience sample: - Due to not availability of the population size weselect the convenience sample to make the study. This type of sample comes underthe non random sample. Under this type we can take the customer opinion whoever available to us or whoever we have seen. 34
  35. 35. Statistical tools: - all the data was used in the this survey is nominal data&ordinal data. For the nomial data we cannot make use of the any statistical tools ormeasures of central tendency. According to the ordinal data I have given rating. 35
  36. 36. Data analysis & interpretation Age group of the sampleS no Age Respondents1 18-30 752 30-45 153 45-55 104 Above 55 0 80 75 70 60 50 40 30 20 15 10 10 0 0 18-30 30-45 45-55 above 55 36
  37. 37. Income level of the sampleS no Income level Respondents1 Less than 3 lakhs 702 3-7 lakhs 144 Above 7 lakhs 16 Total 100 70 14 16 lessthan 3lakhs 3-7lakhs above 7 lakha 37
  38. 38. Why am I chooseS no Income level Respondents1 Brand 152 Mileage 394 Style 24 Good servicing 15 Others 7 Total 100 50 39 40 30 24 20 15 15 10 7 0 Brand Mileage Style Good others servicing 38
  39. 39. Am I satisfied with thepricingS no Particulars Respondents1 Highly satisfied 272 Satisfied 663 Neither satisfied 7 nor dissatisfied Total 100 70 66 60 50 40 30 27 20 10 7 0 Highly satisfied satisfied Neither satisfied nor dissatisfied 39
  40. 40. Am I satisfied with themileageS no Particulars Respondents1 Highly satisfied 312 Satisfied 474 Neither satisfied 4 nor dissatisfied5 Dissatisfied 46 Highly dissatisfied 4 Total 100 50 47 45 40 35 31 30 25 20 15 10 4 4 4 5 0 Highly satisfied Neither dissatisfied Highly satisfied satisfied dissatisfied nor dissatisfied 40
  41. 41. Am I like bike stylingS no Particulars Respondents1 Yes 752 No 25 Total 100 80 75 70 60 50 40 30 25 20 10 0 yes no 41
  42. 42. Am I like feel of the engine?S no Particulars Respondents1 Good 662 Ok 32 Not Ok 2 Total 100 70 66 60 50 40 32 30 20 10 2 0 Good ok Not ok 42
  43. 43. Am I feeling comfortablewhile riding?S no Particulars Respondents1 Yes 902 No 10 Total 100 Series 1 100 90 80 60 40 Series 1 20 10 0 Yes No 43
  44. 44. Am I comfortable withriding position?S no Particulars Respondents1 Yes 842 No 16 Total 100 90 84 80 70 60 50 40 30 20 16 10 0 Yes No 44
  45. 45. How is the lighting whilenight timeS no Particulars Respondents1 Good 702 bad 30 Total 100 80 70 70 60 50 40 30 30 20 10 0 Good Bad 45
  46. 46. What is the complaint?S no Particulars Respondents1 Starting Trouble 182 Battery 343 Engine 84 Brakes 205 Lights 226 Others 8 Total 100 40 34 35 30 25 22 20 20 18 15 10 8 8 5 0 Starting trouble Battery Engine Brakes Lights others 46
  47. 47. ServicesS no Particulars Respondents1 Excellent 182 Very Good 27 Good 36 Ok 7 Poor 8 Very Poor 4 Total 100 40 36 35 30 27 25 20 18 15 10 7 8 5 4 0 excelent very good ok poor very good poor 47
  48. 48. RatingS no Particulars Respondents1 Excellent 172 Very Good 323 Good 404 Ok 65 Bad 5 Total 100 45 40 40 35 32 30 25 20 17 15 10 6 5 5 0 excelent very good good ok bad 48
  49. 49. Interpretation • Customer satisfaction of Hero(hero Honda) motocorp is very good • Hero moto corp may sustain its No 1 position • Customer service is good • Middle class people are highly using the hero moto corp 49
  50. 50. Findings Customer satisfaction of the Hero(Hero Honda) bikes are very Good Middle class people(70%) are Highly using the Hero bikes Battery complaints are high & due to battery problems night time lighting is not good. Major complaints are night time lighting problem & Brakes Most of the customers prefer the hero bikes due to the high mileage 50
  51. 51. SUGGESTIONS ANDRECOMMENDATIONS Hero company better to concentrate on the low price bikes High priority should be given to the mileage because middle class people are using the bikes. Company has to rectify the battery problems & lights 51
  52. 52. CONCLUSION Customer satisfaction of the hero bikes is good 52
  53. 53. BIBLIOGRAPHYwww.hero.comwww.en.wikipedia.comwww.scrib.comhttp://archive.autocarindia.com/autocar_forum/forum_posts.asp?TID=8178 53

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