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Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
Hero Moto corp  internship and Dissertation project
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Hero Moto corp internship and Dissertation project

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  • 1. 1 DISSERTATION REPORT ON “CUSTOMER SATISFACTION AND POST PURCHASE BEHAVIOR WITH RESPECT TO HERO MOTORS” BANGLORE Submitted by: PRAVEEN ENROLLMENT NO: Under The Guidance Of Marketing Faculty In partial fulfilment of award of the degree Of MASTER OF BUSINESS ADMINISTRATION AMITY GLOBAL BUSINESS SCHOOL BANGLORE
  • 2. 2 DECLARATION I hereby declare that the Dissertation project entitled “CUSTOMER SATISFACTION AND POST PURCHASE BEHAVIOR WITH RESPECT TO HERO MOTORS” submitted by me as a partial fulfillment for the award of Masters of Business Administration to Amity Global Business School, Bangalore is original and genuine work carried out by me. Date: Place:
  • 3. 3 ACKNOWLEDGEMENT Apart from my own efforts, the success of any project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to thank my project faculty guide Prof.XXXXX, Bangalore, for his constant follow-up, encouragement and guidance to complete this project within the allotted time frame I would like to thank xxxxxxxxxx, Director General, AGBS, Bangalore, for giving me a chance to gain an exposure in the corporate world. I would also like to thank XXXXXXXXXXXXXXXXXXXXXXXXX, for their kind cooperation and providing me with the academic support. Last but not the least; I would like to thank my Almighty for blessing me and making this project a success.
  • 4. 4 TABLE OF CONTENT Chapter No Title Page No 1 Introduction 6 2 Literature Review 10 3 Research Methodology 28 4 Industry profile 30 5 Company profile 42 6 Termination of Honda joint venture 57 7 Data collection 58 8 Data Analysis and interpretation 59 9 Findings and Discussions 73 10 Suggestions and Recommendations 74 11 Conclusion 75 12 Bibliography 76 13 Annexure 77
  • 5. 5 EXECUTIVE SUMMARY Marketing starts with identifying the needs of customers and ends in satisfying those wants. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction based on their preferences retaining them. As the customers are regarded as the superiors in today‘s market, the level of satisfaction and their preferences should be keenly studied. The two-wheeler industry has been expanding rapidly. Gone are the days when possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity. Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles. Not only this, this industry has also customers ranging from all demographic segments. It has been common sights that even school going children are driving two-wheelers. The women customers are also increasing due to increase in women literacy and employment. Getting a new customer is difficult, than retaining a current customer is a more difficult one and not only that it is estimated that the cost of attracting a new customer is five times the cost of retaining current customer. It requires a great deal of effort to induce satisfied customer to switch away from their current preference. Thus, customer satisfaction is been given top priority in today‘s competitive world. Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the customer‘s satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a detailed study of customer preferences, levels of satisfaction and their complaints and suggestions was undertaken.
  • 6. 6 1. INTRODUCTION TO THE DISSERTATION The Dissertation is all about measuring the customer satisfaction in Hero Motors. Every company is trying to satisfy its customers. The emphasis is on ways of retaining customers, then on attracting new customers. It is easy to attract new customers then to retain old customers. So, companies are trying to focus on this aspect of customer‘s satisfaction. The sale of a product does not end with the sale transaction but it is the point at which the original marketing concept starts. The marketer has to see that whether the customer satisfied with that particular product/service or not. The post purchase behavior is important for a marketer. If there is any cognitive dissonance in the minds of the customers then that is enough to lose a customer. Keeping this in mind the companies are giving more importance to customer satisfaction. This project work has been done to find out whether a customer is satisfied or dissatisfied, also to measure the level of the customer satisfaction and provide this feedback to the company. The first phase of the project involves the collection of information from the customers for interpreting the characteristics based on which the customer feels satisfied or dissatisfied. This information is collected by preparing a structured questionnaire. The questionnaire consists of both open-ended and closed-ended questions. The questionnaire is designed in such a way that a customer feels convenient to answer. The collated information through the questionnaire is analyzed and presented in a statistical form. The findings are listed and suggestions to solve problems faced have been given in the suggestion part.
  • 7. 7 INTRODUCTION TO CUSTOMER SATISFACTION Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer expectation. In general satisfaction are a person‘s feelings of pleasure or disappointment resulting from comparing a products perceived performance relation to his/her expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectation customer is satisfied. If the performance exceeds the expectation the customer is highly satisfied. Customer satisfaction cannot be very difficult. After all you either satisfied with the services you receive or you are not. If you don‘t you are not. If it is that easy, then obtaining people's opinion about how satisfied they are with relatively straight forward matter- or is it? Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers. It looks at what is involved from 3 different angles, the first is from the view of an organization wishing to understand, and measures, how satisfied its customer are with the products and services they receive from it. The second is from the perspective of a research agency that has been asked to obtain feedback from customers and about their experiences when dealing with companies. Finally it considers the issue from the perspective of consumers who participate in surveys, including both business customers and members of general public 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.
  • 8. 8 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 neighborhoods 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 fulfill the customer expectation in terms of quality and service, in relation to price paid."
  • 9. 9 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. 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.
  • 10. 10 2. REVIEW OF LITERATURE Planning for the future to achieve the long-term objective is integral to the survival and growth of every business. Strategic planning today has to take into cognizance the rapid changes in technology, increased competitiveness and the turbulent business environment, also with the world becoming one big global village. Strategy covers every aspect of business from business reengineering, new business development, product development and brand positioning to advertisements promotional campaigns, media and publicity. It is a game of innovation. In fact, marketing people are involved in marketing 10 types of entities; goods, services, experience, events, persons, places, properties, organizations, information and ideas. Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. India is second largest manufacturer and producer of two-wheelers in the world. It stands next to Japan and China in terms of the number of two wheelers produced and domestic sales respectively. Indian two-wheelers industry made small beginning in early 50‘s when Automobile products of India (API) started manufacturing scooter in India. Hero was established on 13th of April 1984. The Indian two wheelers Industry can be broadly classified as scooter, motorcycles and mopeds/scooters. In last six years domestic two-wheelers has seen structural charges. This can be seen from the change in composition of two wheeler sales, where the motorcycles have gained market share from the scooter and moped or scooters segments. The consumer is now faced with proliferation of brand models. Getting new customers as well as retaining them is an important task of manufacturers. So service after sales is very important. A satisfied customer brings in more name and goodwill to the company, which is why customer satisfaction is given more importance in today‘s competitive world. A study on this aspect with Hero two-wheelers at Hero MotoCorp Ltd was made.
  • 11. 11 Marketing mix of Hero Motors: Product: Hero motors are known for its quality and advanced technology, satisfying the needs of the customers both in urban and rural areas. Place: Hero Motors concentrates not only on urban areas, it targets rural areas as well. It has its showrooms in almost every town in the country, making the two wheelers available everywhere in the country. Price: The pricing strategy of the Hero two wheelers is economical and value for money, they were very reasonably priced . Promotion: The promotional strategy of Hero Motors is sponsoring lot of national and international events and endorsed by the well knows personalities of the country. They sponsor the events like cricket world cups.
  • 12. 12 Segmentation, Targeting and Positioning of Hero Moto Corp 1. Introduction to Two Wheeler Bikes A motorcycle (also called a motorbike, bike) is a two wheeled motor vehicle. Motorcycles vary considerably depending on the task they are designed for, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions. Motorcycles are one of the most affordable forms of motorized transport in many parts of the world and, for most of the world's population, they are also the most common type of motor vehicle. There are around 200 million motorcycles (including mopeds, motor scooters, motorized bicycles, and other powered two and three-wheelers) in use worldwide, or about 33 motorcycles per 1000 people. India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment.
  • 13. 13 Segmentation, Targeting and Positioning Related to Bikes A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables—geographic, demographic, psychographic, and behavioral segmentation.  Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)  Demographic Segmentation (age, family size, gender, income, family life cycle, occupation, religion)  Psychographic segmentation (lifestyle, personality)  Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status, attitude towards product) For bikes, demographic segmentation plays an important role. Bikes cater to a particular age group, gender and/or income group. Depending upon the segment, the features of the bike varies. Hence, marketers should have a good knowledge about what features to add on as per the segment they want to cater to. Market Targeting Once the firm has identified its market-segment opportunities, it has to decide how many and which ones to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups. In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the company's objectives and resources. After evaluating different segments, the company can consider five patterns of target market selection.  Single – segment concentration: Through concentrated marketing, the firm gains a strong knowledge of the segment's needs and achieves a strong market presence.  Selective specialization: A firm selects a number of segments, each objectively attractive and appropriate.
  • 14. 14  Product specialization: The firm makes a certain product that it sells to several different market segments.  Market specialization: The firm concentrates on serving many needs of a particular customer group.  Full market coverage: The firm attempts to serve all customer groups with all the products they might need. Manufacturers of bikes need to be very precise while selecting their target market. They should understand the consumer‘s demand and then accordingly place their product. The product‘s features should satisfy its target customers and should be at per with the value it promises to its target customers. Market Positioning Positioning is the act of designing company‘s offering and image to occupy a distinctive place in the mind of a target market. The end result of positioning is value proposition, a cogent reason why the target market should buy the product. [4] Positioning in market is very important as well as difficult. It‘s making the consumers aware of your product. Each bike must have a unique selling point which needs to be well portrayed in consumer‘s mind so that he has an additional choice in his mind. Competiting Bike’s Brands The brands that I have chosen are:  Hero MotoCorp Ltd.  Yamaha Motor Company Limited  Bajaj Auto Ltd.  TVS Motor Company  Harley Davidson
  • 15. 15 Hero MotoCorp Ltd Hero MotoCorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. In 2010, When Honda decided to move out of the joint venture,[7] Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. Product range of Hero MotoCorp are: [5]  CD 100  Passion  Passion Plus  CD 100 SS  CBZ  Karizma  Splendor  CD Dawn  Ambition  Splendor +  CBZ Star  Ambition 135  Impulse  Acheiver  Pleasure  Street  Hunk  Joy  Glamour  CD Deluxe Market Segmentation Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income and age. It caters to youth of all income groups. Its highest selling bike Splendor is a favorite in sub urban and rural India. It potrays itself as the most efficient bike range to cater to Indian Roads.
  • 16. 16 Target Market Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to Rs 95, 000. Each product has multiple optional features. The USP that it uses are: strong, sturdy and powerful, greater mileage, low maintenance cost, safe to ride, ease and comfort. Its target market includes lower middle class consumer to upper middle class consumer. It is affordable, available and acceptable by all. Positioning Strategy Fill it. Shut it. Forget it Campaign This campaign focused on the mileage of Hero bikes. It says that once you fill oil in the bike‘s tank, you are tension free. Due to its higher mileage, you can travel as much as you want without bothering to refill oil. Dhak dhak go Advertisement campaign Dhak dhak refers to the heart beat. Therefore this campaign showed that if you are riding a Hero bike you are listening to your heart. This campaign connects emotionally to the consumer as it shows the connection of bikes to the heart of every Indian.
  • 17. 17 Desh ki Dharkan Advertisement Campaign Desh ki dharkan refers to the heart beat of the country. It symbolizes that all people in India are emotionally attached to their country. Even though there are a lot of cultural differences but the entire country stands as one. This campaign places Hero bikes as the heart beat of the entire nation uniting everyone as a nation. Event sponsorships Event sponsorships of various cricket matches is a positioning strategy as cricket has a huge fan base in India. It positions itself as a strong, reliable, affordable and greater mileage bikes. Celebrity endorsements Various celebrity endorsements are used as their positioning technique. Saurav Ganguly, when he was captain of Indian Cricket team was their brand ambassador along with Hritik Roshan. Both these personalities are unique in their fields. Saurav Ganguly was the face of Indian cricket. People worshiped him. So, through Saurav Gaunguly, Hero potrayed itself as the heart beat of the country. Iconic figure Hritik Roshan is known for his youth and physique. So through him Hero tried to lure the youth.
  • 18. 18 Hum me hai hero campaign This is the recent advertisement of Hero MotoCorp. This advertisement tries to prove that we all are born super starts. We just need to focus and believe in ourselves. There is nothing impossible in this world and there is nothing that can‘t be achieved. Through perseverance we can reach great heights and achieve whatever we want. We just need to believe firmly that we are a hero. Conclusion Hero MotoCorp is the biggest two wheeler manufacturer in the world. It has the highest market share in India. It has successfully delivering its promise to its target customers. The aggressive market positioning strategy that it uses places it way above its competitors. It relates itself to every Indian. It is a bike for the Indian consumers satisfying all their needs. Yamaha Motor Company Limited Yamaha Motor Company Limited, is a Japanese motorized vehicle-producing company. Yamaha made its initial foray into India in 1985. Subsequently, it entered into a 50:50 joint-venture with the Escorts Group in 1996. However, in August 2001, Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha Motor Co., Ltd, Japan (YMC). Presently, its product portfolio includes: [6]  VMAX (1,679cc)  Fazer (153cc)  SS125 (123cc)  MT01 (1,670cc)  FZ-S (153cc)  YBR 125 (123cc)  YZF-R1 (998cc)  FZ16 (153cc)  YBR 110 (106cc)  FZ1(998cc)  SZ-R(153cc)  Crux (106cc)  YZF-R15 version 2.0 (150cc)  SZ & SZ-X (153cc)
  • 19. 19 Market Segmentation Yamaha caters to the market of tier I and tier II cities. It caters to males between the age group of 18 to 35. It caters to upper middle class families. It has high pick up and speed. It is the most innovative and most stylish bike manufacturers. Therefore, it is youth centric. Target Market Yamaha has single segment concentration. It is known as a racing bikes manufacturer. Speed Biking is mainly attributed to Yamaha. Thus positioning itself as a ‗manufacturer of safety first‘ bikes, as well as the most style conscious segment. It also focuses on comfort, technology advancements. Its target customers are the people who are sporty, thrill loving and style conscious. Positioning Strategy YES Yamaha Advertisement YES stands for Yamaha extended services. It tells that now Yamaha is growing in all parts of the country. It has good nationwide service. It can be purchased easily. It gives good pick up, speed and better mileage. It provides comfort. Therefore, this advertisement portrays Yamaha as common man‘s racing bike. It conveys the message of ‗staying ahead of tortoises‘ focusing on the speed of the bike .
  • 20. 20 Celebrity endorsements John Abraham is the brand ambassador for Yamaha SZR. The hard sturdy look of the bike can be correlated with the masculinity of John Abraham. It thus says that it is a bike for all masculine, speed and thrill loving people. Use of songs for advertisement Yamaha thought it is the best way to portray the efficiencies of the bikes. To enhance the advertisement and make it appealing, the song ―Ruk Jaana Nahin‖ has been used as the background score. The campaign is a national level campaign catering to regional markets as well including south, west and east India. The target consumer is essentially 24 yrs & above from SEC A/B and preferably male. Conclusion Yamaha reflects racing bikes in India. It has good pick up and speed. It is famous for its sturdy, stylish looks and best technologies. It caters to upper middle class and middle-middle class income group, especially adult. Bajaj Auto Ltd. Bajaj Auto Limited, is an Indian motorized vehicle-producing company. Bajaj Auto is a part of Bajaj Group. Its founded by Jamnalal Bajaj at Rajasthan in the 1930s. Bajaj Auto is the world's third-largest manufacturer of motorcycles and second-largest in India.Over the last decade, the company has successfully changed its image from a scooter manufacturer to a two-
  • 21. 21 wheeler manufacturer. Its product range encompasses scooterettes, scooters and motorcycles. Its real growth in numbers has come in the last four years after successful introduction of a few models in the motorcycle segment.[7]  CT 100  Platina  Avenger  Discover  Eliminator  Wind 125  Caliber 115  Pulsar 150 KS  Kawasaki Ninja  Boxer Market Segmentation Bajaj caters to the mass consumer. It caters to middle-middle and upper middle income group of consumers. It does not have the rural support. It still lags behind in the rural areas. It caters to aspiring young men of the country. Target Market Bajaj follows selective specialization while targeting its consumers. Its concentrates on the youth of the country who are technology freak. It offers a wide variety, so that it can cater to various income groups of the country. Positioning Strategy
  • 22. 22 Celebrity endorsement The very first TV Commercial of the Bajaj Discover DTSi (125 cc at that time) in 2004 featured the Cine Star of Asia, Jackie Chan. Jackie Chan is known for his fast moves, action, and quick reflexes. So the features of this bike could be easily related to that of Jackie Chan. The bike is fast, has speed and technology and can survive in all sorts of roads. This advertisement convinces you to be a master who always wins similar to Jackie Chan. It portrays the image of the bike to be a master piece. 1.1.1 Pulsar mania This advertisement symbolizes bike stunts of different range. The campaign beard innovative punch line of ―Definitely Male‖ positioning pulsar to be a masculine – looking model with an appeal to sensitive customers. It boosts the male ego of its target customers. It makes them feel themselves as the fastest Indian Discover India with the power of 1 L petrol This advertisement positions Bajaj as a fuel efficient bike with a greater mileage. It makes you feel that you can travel to the most exhaustic and amazing places in India, i.e., discover the undiscovered India. This also gives a patriotic touch to the mindset of people making them fell proud of their nation. You can cross crowded lanes, mountain paths and explore the rich heritage if India without any worries of oil refilling.
  • 23. 23 Hamara Bajaj This was the tag line of Bajaj Auto Ltd. It positions Bajaj as your own bike. It gives the feeling of belongingness therefore playing with the emotions of the consumers. Conclusion Bajaj is the second largest manufacturer of bikes in India after Hero Moto Corp. Its twin spark technology, speed, fuel efficiency had made a favorite in Indian roads. It gives you a feeling of belongingness. It makes you feel ‗male‘ and emotionally binds you to Mother India. TVS Motor Company TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, and is the flagship company of the USD 4 billion TVS Group. TVS Motor currently manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. Their bike‘s range includes:  Apache RTR 180  Flame DS 125  Flame  TVS Jive  StaR City  Sports Market Segmentation The range of TVS bikes are less. It caters to the lower middle class and the middle-middle class income groups. It caters to the youth. It segments itself on the basis of gender as well – as it caters to male. Target market TVS focuses on the multisegment strategy of targeting the market. It caters to youth of both lower middle class and the middle-middle class income groups. It caters to those who are passionate about owning a bike.
  • 24. 24 1.2 Positioning Strategy 1.2.1 Celebrity endorsements TVS endorses Sachin Tendulkar as its brand ambassador. Sachin is a the greatest cricketer India has ever produced. Hence people can easily link to it as something great and good. So, TVS positions itself as a bike that is safe, balance and can be easily maintained. Powerful and stylish This advertisement shows that TVS bikes are stylish, powerful, masculine and can be easily flaunted off amongst peers. It gives you a feeling of superiority. Conclusion The aggressive marketing strategy along with the changed approach to advertisement campaign boosted the demand for the TVS models. They can be easily affordable, reliable and easy to maintain. TVS has positioned itself well in the bike‘s sector. It arises a passion in you to own something that you feel proud of. Harley Davidson Harley-Davidson often abbreviated H-D or Harley is an American motorcycle manufacturer. Founded in Milwaukee,Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression. The company sells heavyweight (over 750 cc) motorcycles designed for cruising on the highway. Harley-
  • 25. 25 Davidson motorcycles (popularly known as "Harleys") have a distinctive design and exhaust note. They are especially noted for the tradition of heavy customization that gave rise to the chopper-style of motorcycle.[8] Market Segmentation It caters to tier I and tier II cities. It caters to touring enthusiastic and outdoor oriented male of high income groups between the age of 27 to 45. It caters to innovators or achievers who are self employed business men and are ready to buy the product. They want to but it for leisure riding, planning weekend rides etc. Target market It caters to people who golf, who own yachts, indulge in leisure activities, hoteliers, resort owners in tourist destinations are always looking to add new luxury items intotheir fleet for their clients to indulge into leisure activities. Positioning Strategy The brand positions itself as:  Masculine  Free spirited  Rugged  Macho  Strong  Adventurous Conclusion Harley Davidson is a bike of the premium category. It caters to the high end people who wish to derive pleasure while riding them.
  • 26. 26 STATEMENT OF THE PROBLEM This Project has been titled ―A comprehensive study Post purchase buyer behavior and satisfaction towards Hero Motors Bikes after the split with Honda." To study the new market of Hero motors after the split with Honda, the consumer response to the bike and needed improvement aria The study would help to understand the consumer satisfaction to their expectation. OBJECTIVES This study was conducted keeping the following objectives in mind. 1. To study the factors which influence the purchase of Hero two-wheelers? 2. To know the customer level of awareness of Hero two-wheelers. 3. To know the various factors, which influence customers in purchasing, they‘re two - wheelers? 4. To find the after sales service offered by Hero MotoCorp Ltd. 5. To know the customer level of satisfaction of Hero two-wheelers with respect to Hero MotoCorp Ltd. 6. To find the profile of Hero MotoCorp Ltd two-wheeler customers. 7. To understand two wheeler sector in India. 8. How the split with Honda has affected Hero motors. SCOPE OF THE STUDY  This study helps the organizations to increase their service and product quality and in turn increase the market share, top and bottom line of the company.
  • 27. 27 NEED FOR THE STUDY Marketing starts with identifying the needs of customers and ends in satisfying those wants. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction based on their preferences retaining them. Without customer, no market exists. As the customers are regarded as the superiors in today‘s market, the level of satisfaction and their preferences should be keenly studied. The two-wheeler industry has been expanding rapidly. Gone are the days when possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity. Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles. Not only this, this industry has also customers ranging from all demographic segments. It has been common sights that even school going children are driving two-wheelers. The women customers are also increasing due to increase in women literacy and employment. Getting a new customer is difficult, than retaining a current customer is a more difficult one and not only that it is estimated that the cost of attracting a new customer is five times the cost of retaining current customer. It requires a great deal of effort to induce satisfied customer to switch away from their current preference. Thus, customer satisfaction is been given top priority in today‘s competitive world. Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the customer‘s satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a detailed study of customer preferences, levels of satisfaction and their complaints and suggestions was undertaken.
  • 28. 28 RESEARCH METHODOLOGY The information required for this study obtained was basically through two sources. Primary Data: Primary Data has been gathered by a survey through a structured questionnaire. The Data has been collected from 100 customers, through questionnaires, by using simple random sampling. In addition interaction with the staff of Hero MotoCorp Ltd has also given some information. Secondary Data: Secondary Data comprises of information obtained from annual reports, brochures, manuals websites etc. Target respondents Gender: Male and female Age group: 20-45 Sampling units: Hero Motors Two wheelers users No. of Samples: 50 respondents
  • 29. 29 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 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.
  • 30. 30 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: 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.
  • 31. 31 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 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 cost of loans, which will help in boosting sales of 2-wheelers, since 80% of the two-wheelers are credit –stimulated.
  • 32. 32 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. 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 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
  • 33. 33 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. NEW SEGMENTS A Step is through segment like Kinetic K4-100, Honda Street, Bajaj M-80, which is quite close to the motorcycle segment. The other segment is scooterettes or mini scooters in which vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj Sunny/Sprite/Safire and LML trendy can be considered. These are vehicles under 75 cc and largely targeted at the youth market such as college students, young boys and girls and new couples. They get the advantage of lower excise duty at 16 percent as compared to 24 percent applicable over 75 cc. The trend is towards push button start vehicles. Among the majors in the two-wheeler industry, first quarter figure for the current year of some players has been encouraging. The company sold 313,303 units last month as compared to 325,360 units in the same month last year. With this, BAL has recorded as 87 percent growth in the motorcycle segment in the first quarter with sales of 130,577 units (93,631 units in the corresponding period last year) BAL estimates market share of the first quarter-Geared scooters 75.9%, unguarded scooters- 16.5%, Step-thrus-72.3% and motorcycle-20.5%. In the scooters segment, sales of Bajaj Sunny and Bajaj Spirit increased by 170 percent to 7,876 units. First quarter sales registered an impressive 78 percent growth with sales of 19,562 (10,995 units). The overall sales grew by 9.3 percent in the quarter when the company sold 3.24 lakh vehicles.
  • 34. 34 BAL however reported a decline in sales of scooters by 15.6 percent in the first quarter. The company hopes to increase the share of motorcycle in its product basket from 18 percent last year to 30 percent by 2003-04. Hero MotoCorp Ltd enjoys tremendous brand equity in the motorcycle segment. Kinetic Motors, another important player, managed to grow in 1999-2000, when the scooters segments a whole slipped by around 5 percent. TVS Suzuki, a motor two-wheeler market, has reported a growth of 13 percent in the first quarter period and sold 2.19 lakh units. Sales of motorcycles and scooters were up by 18 percent and that of mopeds by 8 percent over the same period last year. The current year therefore promises to be a testing time for the two-wheeler industry. Industry pundits feel that an overall growth rate of 5 percent should be possible as against 9 percent projected earlier. The sales volume therefore is expected to be around 3.8 million in 2000-2001. DRAMATIC CHANGES: HeroMotoCorp 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. The coming years will see increasing competition due to the parity in products and price. The only differentiators will be technology, quality, product range and service. Imaginative marketing will emphasize relationship building, customer satisfaction and relationship. All is exploring new techniques such as direct marketing and institutional sales. Some of them are taking the vehicle actually to the customer‘s doorstep. Now the customer is the king.
  • 35. 35 HISTORICAL DEVELOPMENT OF TWO WHEELER INDUSTRY India is the second largest manufacturer and producer of two-wheelers in the world. It stands next to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons as if respective policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc., In Indian two-wheeler, industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter segment. Although various Government and Private enterprises entered the fray for scooters, the only new player that has lasted until today is LML. Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The motorcycles segment was no different, with only three manufacturers via Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment. The two-wheeler market was opened to foreign competition in the mid 80‘s. And then the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke bikes (100cc category), gaining a top slot.
  • 36. 36 The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90‘s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years. The industry had a smooth ride in the 50‘s, 60‘s and70‘s when the government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80‘s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women towards buying scooters, who were earlier inclined towards moped purchases. In line with this, the scooter segment has consistently lost its part of the market share in the two~whee1er market. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in1992, resulting in the production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reasons for recession in the sector were the incessant rise in fuel price, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors as if increased production in 1992, due to new entrants coupled with the recession in the industry resulted in either company reporting losses or fail in profits.India is one of the very few countries manufacturing three wheelers in the world. It is the world‘s largest manufacturer and seller of three wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%; Bajaj Tempo, Greaves Ltd and Scooters in India share the rest. The total number of registered two-wheelers and three-wheelers on road in India, as on March 1998 was 27.9nm and 1 .7nin respectively. The two-wheeler population has almost
  • 37. 37 doubled in 1996 from a base of 12.6mn in 1990. PENETRATION OF TWO-WHEELERS: On a base of around 28mn vehicles on Indian roads and around 175mn households, there were only 160 motorized two-wheelers per thousand households in FY98. This compares poorly with countries like Thailand where it is around 600 per thousand households. Also with a household size of 5.5 persons and more than one wage earner in about 60% of the households, the potential for a second vehicle demand is also good. The number of households in the low-income group has fallen since FY86 and has been more pronounced in the post-reform period. On the other hand, the number of households in the middle, upper middle and high-income groups that form the consumer base for twowheelers, have increased. Their share of the total number of households has increased from 10.6% in FY88 to 20.5% inFY96. This rising income profile however, has, been more pronounced in the urban areas as average annual growth in industry surpassed that of agriculture in the period FY93 to FY96. Major Developments & Investments Tata Motors Ltd plans to invest about £30 million (US$ 49.17 million) in the National Automotive Innovation Campus (NAIC) for research and development (R&D). The investment would be made through its subsidiary Tata Motors European Technical Centre (TMETC) at the University of Warwick campus, UK. Volvo India Pvt Ltd plans to set up truck and bus manufacturing facility in Malur, Karnataka, with an investment of Rs 974 crore (US$ 158.32 million). The facility is expected to give employment to about 2,125 people. Manufacturing companies in Japan continue to view India as the top destination for investments—over China, Thailand, Vietnam, Brazil and Indonesia—in the next three years, according to Mr Masanori Nakano, Consul General of Japan in Chennai.
  • 38. 38 Tata Motors-owned Jaguar Land Rover (JLR) has entered into an agreement with the state of Rio de Janeiro to build a manufacturing plant in Brazil with an investment of Rs 4,626 crore (US$ 751.95 million). JBM Auto has formed a joint venture (JV) with Italian bus maker BredaMenarinibus to manufacture luxury buses in India. The Indo–Italian venture plans to set up a plant at Kosi, near Faridabad in Haryana, and produce 2,000 buses every year initially, at an investment of Rs 500 crore (US$ 81.27 million). Mahindra & Mahindra (M&M) plans to develop the world's first hybrid technology that can be deployed in vehicles with manual transmission and enhance fuel efficiency by almost 20 per cent. Amtek Auto has signed an agreement to buy Germany-based Kuepper Group of companies for about €200 million (US$ 272.73 million) in its second big European acquisition in 2013. Honda Cars India will use the Ennore Port to export cars to South Africa. The infrastructure for car exports at Ennore Port is attractive and cost effective. Government Initiatives The Government of India plans to introduce fuel-efficiency ratings for automobiles to encourage sale of cars that consume less petrol or diesel, as per Mr Veerappa Moily, Union Minister for Petroleum and Natural Gas, Government of India. The Union Budget 2013–14 added some incentives to the industry. The analysis by Deloitte on the Union Budget highlighted the following points: The period of concession available for specified part of electric and hybrid vehicles till April 2013 has been extended up to March 31, 2015. The basic customs duty (BCD) on imported luxury goods such as high-end motor vehicles, motor cycles, yachts and similar vessels was increased. The duty was raised from 75 per cent to 100 per cent on cars/motor vehicles (irrespective of engine capacity) with CIF value more than US$ 40,000; from 60 per cent to 75 per cent on motorcycles with engine capacity of 800 cc or more and on yachts and similar vessels from 10 per cent to 25 per cent.
  • 39. 39 In addition, an increase in excise duty from 27 to 30 per cent has been allowed for SUVs with engine capacity exceeding 1,500 cc, while excise duty was decreased from 80 to 72 per cent, in case of SUVs registered solely to be used for taxi purposes. An exemption from BCD will be provided to lithium ion automotive battery for manufacture of lithium ion battery packs for supply to manufacturers of hybrid and electric vehicles. The excise duty on chassis of diesel motor vehicles for transport of goods reduced from 14 per cent to 13 per cent. The Government of India allows 100 per cent FDI in the automotive industry through automatic route. Road Ahead The vision of Automotive Mission Plan (AMP) 2006–2016 expects India, ―to emerge as the destination of choice in the world for design and manufacture of automobiles and auto components with output reaching a level of US$ 145 billion; accounting for more than 10 per cent of the gross domestic product (GDP) and providing additional employment to 25 million people by 2016.‖ With special focus on exports of small cars, multi-utility vehicles (MUVs), two and three wheelers and auto components; the automotive sector‘s contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016, according to the AMP 2006–2016.
  • 40. 40 Latest update: January, 2014 Revenues The gross turnover of automobile manufacturers in India expanded at a compound annual growth rate (CAGR) of 17.7 per cent over FY07-11. Market Segments Two wheelers segment accounted for about three quarters of the total automotive production in the country during FY13.
  • 41. 41 COMPANY PROFILE 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 capitalisation 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. HeroMotoCorp 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. 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.
  • 42. 42 MISSION Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners. STRATEGY Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. MANUFACTURING Hero MotoCorp two wheelers are manufactured across 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. 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 endeavor to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes
  • 43. 43 DISTRIBUTION The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the country. 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 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.
  • 44. 44 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. 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)—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 payouts to the Japanese company. Another major irritant for Honda was the refusal
  • 45. 45 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. 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).
  • 46. 46 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. 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 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. TVS Motor, likewise, is gradually building its numbers and will have reason to be pleased with its scooter business. The Jupiter has quickly established itself as a brand to reckon with while the more established Scooty is also in auto mode. 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.
  • 47. 47 Directors Founder Director and Chairman : Dr. Brijmohan Lall Munjal 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 Lall 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. 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'' fiduciaries and trustees. Their objective is to take the business forward in such a way that it maximizes ''Your'' long-term value.
  • 48. 48 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. 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 by us via sustained business growth and increases in operating efficiency even in the face of competitive and cost pressures. GRADING SENSITIVITIES Key sensitivities to our estimates include: (1) Inflation in input costs not being neutralized by price increases because of competitive pressures; (2) High concentration on Executive segment; (3) Intensifying competition from global players; (4) Ability to develop in-house technical capability or form alternate technical tie-ups with external institutions.
  • 49. 49 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. 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 SuperSplendor, 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.
  • 50. 50 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 Musculine 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 Deluxe ECO, Hero Motocorp SuperSplendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three new technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart. Awards & Recognitions on 2011 Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike Awards. CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new corporate entity" by CNBC Awaaz Consumer Awards "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards
  • 51. 51 Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero Good Life "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing Award of Asia Order of Merit for Hero Good Life Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand" 2011 serve • 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, karizma (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 endeavor 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
  • 52. 52 customers in the rural area are not left waiting for adequate service as it is impossible for the company to 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. Good life: Customer Loyalty Program Good Life 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. GoodLife 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. 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
  • 53. 53 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. 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
  • 54. 54 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. PORTFOLIO OF PRODUCTS 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. 100cc Bike category SPLENDOR PLUS SPLENDOR NXG SPLENDOR PRO PASSION PRO PASSION XPRO MAESTRO PLEASURE HF DAWN HF DELUXE 125cc
  • 55. 55 Bike category GLAMOUR SUPER SPLENDOR IGNITOR Glamour PGM FI 150cc Bike category ACHIEVER KARIZMA KARIZMA ZMR IMPULSE HUNK XTREME
  • 56. 56 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)—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 payouts 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).
  • 57. 57 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.
  • 58. 58 Data Collection 1. Which type of Hero two wheeler model owned by you? Interpretation:- From the above table it is inferred that, 40% of respondents are using splendor and 24% of respondents using Glamour, 18% use pleasure ,8% use Karizma, 8% use Maestro and only 2% of respondents use Impulse. SPLENDOR 40% GLAMOUR 24% KARIZMA 8% MAESTRO 8% PLEASURE 18% IMPULSE 2% Using model Number Model Respondents 1 SPLENDOR 20 2 GLAMOUR 12 2 KARIZMA 4 3 MAESTRO 4 4 PLEASURE 9 5 IMPULSE 1 Total 50
  • 59. 59 2. What is the source from which you found the advertisements about Hero Motors NO Source Respondents 1 Television 20 2 Newspapers 12 3 Radio 6 4 Hoardings 12 Total 50 Interpretation: From the above table it is very clear that most of the respondents watched the advertisements of Hero in Televisions i.e 40% and newspapers, Hoardings combinely 48% and radio is very less i.e 12%. 0 5 10 15 20 Advertisements Advertisements
  • 60. 60 3. Who influenced you to make the purchase of Hero Motors. A) Friends B) Family C)Sales People Influencers Response Friends 21 Family 18 Sales People 11 Total 50 Interpretation: From the above interpretation it is observed that the purchase is mostly influenced by friends 42% , family 36% and by sales people is just 22% which is the least of the others. 0 5 10 15 20 25 Friends Family Sales People Series1
  • 61. 61 4.What is your preferred capacity and color about your motor cycle. A) 100cc B) 125cc C)150cc D)200cc A) Red B) Black C)Blue D)Other Capacity Response Colour Response 100cc 5 Red 12 125cc 14 Black 22 150cc 20 Blue 10 200cc 11 Others 6 Total 50 Total 50 0 5 10 15 20 25 100cc 125cc 150cc 200cc preference preference
  • 62. 62 Interpretation: Capacity: From above table it is observed that most of the two wheeler users are interested in 150cc bikes i.e 40%, 125cc is 28%, 200 cc is 22%,100cc is just 10% Colour: Maximum people prefer black colour 44% followed by red 24% , blue and the others 0 5 10 15 20 25 Red Black Blue Others Preferred color Preferred color
  • 63. 63 5. Are you satisfied with the delivery time of your motor cycle. A) Yes B) No Response Yes 36 No 13 Total 50 Interpretation: From the above table it is very clear that maximum respondents are satisfied with the delivery time of the motorcycle i.e 72% and the remaining 28% were not satisfied by the delivery time. 0 5 10 15 20 25 30 35 40 Yes No delivery time delivery time
  • 64. 64 6. How do you think is the reliability of the hero vehicles. A) Excellent B) Good C)Average D)poor Response Excellent 20 Good 22 Average 6 Poor 2 Total 50 Interpretation: From the above table it is very clear that maximum respondents feel that reliability of hero Vehicles is excellent and good i.e 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve reliability of its vehicles to attract more customers and to satisfy the existing customers. 0 5 10 15 20 25 Excellent Good Average Poor Reliability Reliability
  • 65. 65 7. What is your level of satisfaction of service with Hero Motors A) Excellent B) Good C) Average D)poor Response Excellent 20 Good 22 Average 6 Poor 2 Total 50 Interpretation: From the above table it is very clear that maximum respondents feel that they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve the service to its customers for maintaining the maximum satisfied customers which will bring in more customers and good word of mouth for Hero Motors. 0 5 10 15 20 25 Excellent Good Average Poor service service
  • 66. 66 8. What is the reason for your preference of Hero. A) Quality B) Fuel Efficiency C) Economic D) Good service Preferences Responses Quality 10 Fuel efficiency 20 Economic 8 Good Service 12 Total 50 Interpretation: From the above table it can be concluded that maximum respondents prefer hero vehicles as they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve the service to its customers for maintaining the maximum satisfied customers which will bring in more customers and good word of mouth for Hero Motors. 0 5 10 15 20 25 Quality Fuel efficiency Economic Good Service Reason for preference Reason for preference
  • 67. 67 9. From how long are you using the Hero vehicle. A) <6months B) 6-9 months C)9-12 months D)more than year Usage Responses Less than 6 months 5 6-9 months 10 9-12 months 13 More that year 22 Total 50 Interpretation: From the above table it can be concluded that maximum respondents i.e 44% using Hero vehicles for more than a year and 26% of respondents using from 9-12 months, 20% using from 6-9 moths and 10% are the new customers. From this we can conclude that most of the hero vehicles users are using from long period . so if hero motors concentrate on providing better service after the purchase to the customers they will keep using the Hero vehicles for longer period. 0 5 10 15 20 25 Less than 6 months 6-9 months 9-12 months More that year usage period usage period
  • 68. 68 10. How do you think Hero can improve on customer service . A) Service in time B)well trained mechanics C)Less labor cost Preference Response Service in time 15 Well trained mechanics 24 Less labor cost 11 Total 50 Interpretation: 48% of respondents feel that the customer service at hero motors can be improved by training the mechanics and 30% feel by doing service in time, 22% feel it by providing the service for lesser costs. Providing the satisfying service is very essential for any company to keep its customers satisfied. Hero must take care of all the three as they were important to increase service. 0 5 10 15 20 25 30 Service in time Well trained mechanics Less labor cost Improving serivce Improving serivce
  • 69. 69 11.Which age group do you belong. A)20-25 B)25-35 C) 35-45 D) above 45 Age group Responses 20-25 years 5 25-35 16 35-45 21 Above 45 8 Total 50 Interpretation: The maximum users of the hero vehicles belong to the age group of 35-45 followed by 25-35, 42% belong to age group of 35-45 and 32% belong to 25-35, 10 % of respondents are between 20-25 years of age and 16 % are above 45. From this is clear that the mid aged people are using the hero vehicles mostly. It has to produce different models for younger population. 20-25 years 10% 25-35 32% 35-45 42% Above 45 16% Age groups
  • 70. 70 12. Problems faced at the time of service. A) High spare parts cost B)Low quality C) Delay in service D)No Problems Problem faced Response High spare parts cost 10 Low quality 10 Delay in service 14 No problems 16 Total 50 Interpretation: It was very good that 32% customers not facing any problems with the service with the hero but there were some problems faced by the customers which should mostly concentrate. 20% feel the spare parts cost is high and 20% that the quality of service is low, 28% feel that the service is slow. 0 2 4 6 8 10 12 14 16 18 High spare parts cost Low quality Delay in service No problems customer issues customer issues
  • 71. 71 13. Will you recommend Hero Motors to others. A) Yes B) No Recommendation Response Yes 41 No 9 Total 50 Interpretation: From the above responses from the customers it is clear that 82% of the respondents would like to recommend Hero to others and only 18% don‘t want to recommend which is less percentage but hero should have to take measures to convert the unsatisfied as satisfied customers who inturn recommend hero products to others. Yes 82% No 18% Recommendation to others
  • 72. 72 14. Are you satisfied with the overall service of Hero. A) Yes B) No Recommendation Response Yes 40 No 10 Total 50 Interpretation: From the above responses from the customers it is clear that 80% of the respondents were satisfied with the overall service of the Hero motors and 20% were not satisfied hero should have to take measures to convert the unsatisfied as satisfied customers. 0 5 10 15 20 25 30 35 40 Yes No overall satisfaction overall satisfaction
  • 73. 73 SUMMARY OF FINDINGS 1. The Hero MotoCorp is leading the market. The difference is too big to cope up with, for any manufacturer in short span. With proven products and many people having faith in brand, it is quite a difficult task for others to take the Hero‘s number one position. 2. Ability to understand customer‘s needs and wants, maintenance cost is low. 3. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number 4. The TV promotions are more influence the customer behavior of two wheeler sector. 5. The purchase desiccations of consumers are influence by friends and family. 6. Blue, Red, Black color bike with 150 cc to 200cc is fast moving. 7. Most of the despondences are agree that the bikes are delivering proper time. 8. The service provide by Hero MotoCorp is satisfied by more than 70% of customers. 9. Brand name of Hero is still good in market after split with Honda 10. Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction 11. The research showing that consumer want to get more service satisfaction. 12. Maximum of the customer likes to recommend Hero two wheeler to their friends, its shows they are satisfied with the bike. 13.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
  • 74. 74 SUGGESTIONS AND RECOMMENDATIONS It is very hard to hold the pulse of a customer in the market. Customer‘s satisfaction is different for different people at different situations; Majority of the respondents were still unaware about different versions of Hero bikes. Therefore I suggest the company personals should take initiative to create awareness about these versions. Few of the customers expressed concern over frequency of the maintenance & service problems faced by their vehicle and expressed ‗high satisfaction‘ over it. Therefore, I suggest them to re look at the vehicle & re-develop in order to stop the frequency of these problems. Hero MotoCorp want to give more importance in there service part its include timely service, and quality of service Hero want to develop more promotion for there some models like sports bike and gear less scooter Hero bikes can concentrate to increase their export market Hero MotoCorp Ltd should try to give more advertisements in news paper, bill boards in that area to enable easy recall of the people for Hero MotoCorp Ltd. Hero Motors can also increase models attracting the Indian youth.
  • 75. 75 CONCLUSION Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers. 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 endeavor 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 Ltd 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 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. 7
  • 76. 76 BIBILOGRAPHY http://www.ibef.org/industry/india-automobiles.aspx http://en.wikipedia.org/wiki/Hero_MotoCorp http://www.heromotocorp.com/en-in/
  • 77. 77 ANNEXURE 1.Which type of Hero two wheeler model owned by you? A) Splendor B)Glamour c)Passion D)Karizma E) Impulse F)Maestro G) Pleasure 2. What is the source from which you found the advertisements about Hero Motors A) Television B)Newspapers C)Radio D)Hoardings 3. Who influenced you to make the purchase of Hero Motors. A) Friends B) Family C)Sales People 4. What is your preferred capacity and color about your motor cycle. A) 100cc B) 125cc C)150cc D)200cc A) Red B) Black C)Blue D)Other 5. Are you satisfied with the delivery time of your motor cycle. A) Yes B) No 6. How do you think is the reliability of the hero vehicles. A) Excellent B) Good C)Average D)poor 7. What is your level of satisfaction of service with Hero Motors A) Excellent B) Good C) Average D)poor 8. What is the reason for yout preference of Hero. A) Quality B) Fuel Efficiency C) Economic
  • 78. 78 9. From how long are you using the Hero vehicle. A) <6months B) 6-9 months C)9-12 months D)more than year 10. How do you think Hero can improve on customer service. A) Service in time B) well trained mechanics C) Less labor cost 11. Which age group do you belong? A) 20-25 B) 25-35 C) 35-45 D) above 45 12. Problems faced at the time of service. A) High spare parts cost B) Low quality C) Delay in service D) No Problems 13. Will you recommend Hero Motors to others? A) Yes B) No 14. Are you satisfied with the overall service of Hero? A) Yes B) No

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