IEC College of Engineering & Technology, Greater Noida Department of Business Administration

RE EARC! "R#$ECT RE"#RT %&BA'()*+

#N

AN ANALYSIS OF TWO WHEELER SEGMENT IN AUTOMOBILE INDUSTRY HIGHLITING BAJAJ & HERO HONDA
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (MBA) BY (U.P. TECHNICAL UNIVERSITY, LUCKNOW)

Resea !" C#$%&e'e( U)(e '"e S*%e +,s,#) #M . SHAKTI PRAKASH

SUBMITTED TO:
HOD-MBA DEPTT. Semester)

SUBMITTED BY:
ANSHUL KUMAR Roll No.: 0709070017 MBA (4th

BATC! , -../'-..0 ACKNOWLEDGEMENT

With a sense of gratitude, I would like to express my indebtedness to Mr. Rajnish Up pal Hero Honda Motors td., for gi!ing me an opportunity to under take this Resear"h on # Consumer opinion Regarding leading Brands of Hero Honda Motor Bi e !n !ndia "in this esteem organi$ation.

I would like to thank Mr# A# K# Mitra$ %a&ult' Guide$ !EC College of Engg# ( Te&)nolog'$ Greater Noida for his "onstant guidan"e to "ondu"t the present arduous resear"h and untiring "ooperation whi"h he extended to me throughout the duration of my resear"h.. My spe"ial thanks are for those who spared time for pro!iding information and responding to the %uestionnaire.

ANK!T *!NGHAL

+RE%ACE
&s a part of M'& (th )emester degree "ourse a student is re%uired to undertake short term Resear"h proje"t. *he obje"ti!e of this study is to pro!ide an opportunity to student to familiari$e themsel!es with the pra"ti"al aspe"t of problems in parti"ular field.

*his Resear"h has been !ery useful learning experien"e. +nri"hing knowledge. In field of marketing resear"h stati"ally appli"ation and de"ision making pro"ess.

TAB1E #2 C#NTENT

+art ! I,*R-.U/*I-, &'-U* *H+ /-M0&,1

*H+ HI)*-R1 -2 *H+ /-M0&,1 )*RU/*UR+ -2 /-M0&,1 0R-.U/*) 3 )+R4I/+) 0 &,) 3 'U.5+*) M&R6+*I,5 0- I/1 3 0R&/*I/+) 0+R2-RM&,/+ I, *H+ M&R6+* 0 &/+ 3 )H&R+ 0R-' +M) 2&/+. '1 *H+ /-M0&,&1

+art !!

I,*R-.U/*I-, -2 *H+ *-0I/ -'7+/*I4+) R+)+&R/H M+*-.- -51 .&*& &,& 1)I) 3 I,*+R0R+*&*I-, 2I,.I,5) )U55+)*I-,)

IMI*&*I-,) 3 /-,/ U)I-,

'I' I-5R&0H1 3 &00+,.I/+)

!NTROD,CT!ON O% HERO HONDA MOTOR* L!M!TED

HERO HONDA MOTOR* L!M!TED

O-ER-!EW

Hero Honda Motors

td., the manufa"turer of India

argest selling 899 //

Motor"y"les was in"orporated on 7an. 8:, 8:;(. Hero Honda is a su""essful blend of two uni%ue "ultures 3 world market leaders i.e. Honda Motor Compan' of .apan ( Hero Group of !ndia . *he partnership between Honda<s 3 Manual<s to manufa"ture 899 // Motor bike has been one of the most su""essful Indian joint 4enture e!er. HHM has brought to India a

re!olution on *wo Wheeler by famous ad!ertising "ampaign Fill it-Shut ItForget it . *oday = plants of HHM are lo"ated on .elhi>7aipur highway.

HHML DHAR,HERA +LANT

LOCAT!ON / ?:th 6M )tone .elhi>7aipur Highway .haruhera >8== 89? .ist. Rewari @Hr.A *el. 98=;B>=8B8>BC 2ax. D 98=;B>=B::

E*TABL!*HED AREA *otal /o!ered MODEL*

/ 8:th 7an, 8:;(

/ =,(;,999 s%. mts. / C;,8;B s%. mts. @=B.CEA / CD0122$ CD0DEL,3E$ CB4$ *+LENDOR

HMHL G,RGAON +LANT LOCAT!ON / BFth 6m. stone .elhi 7aipur Highway )e"tor BB, 5urgaon >8== 998 Haryana *el D 98=(>B9(8=B>8B= E*TABL!*HED AREA *otal /o!ered MODEL* / =,::,999 s%. mts. / (F,=99 s%. mtsG @8C.;EA / *TREET$ *+LENDOR$ CB4 / =(*H 2+', 8::F

HEAD O%%!CE

LOCAT!ON

/ B(, /ommunity /entre 'asant ok, 4asant 4ihar ,ew .elhi > 889 9CF *el. D ?8(>=(C8 @:linesA

H!*TOR5 O% COM+AN5

Honda Motor Compan'$ .apan/

Honda motor company the worlds largest manufacturer of Motorcycle, commanding 2 ! of world"s # $! of %apans Motorcycle mar&et, was

incorporated in '()*. +oday Honda, name has -ecome the guarantee of the technological # manufacturing e.cellence of any product. It in/ol/ed in automo-iles # power product 01awn Mowers, generators and 2ut -oard Motors3. It has *4 o/erseas production facilities in 4 countries, loo&ed after -y a (4,$$$ strong force.

Hero Group of !ndustries

What began in udhiana in 8:C8 as a small unit manufa"turing 'i"y"le parts has today emerged as Rs. =C99 /rores industrial /olossus > Hero 5roup of industries. Munjal brothers set it up. *he operations of group "o!er a wide spe"trum of "onsumer 3 Industrial appli"ation in"luding motor"y"le, light motor"y"les, mopeds, automoti!e "omponents 3 industrial supplies. Hero /y"les is in Guinness Boo of World Re&ord as World<s largest bi"y"le manufa"turer. It has also re"ei!ed se!eral ,ational 3 International &wards for +x"ellen"e. *he sear"h for +x"ellen"e led to "reation of "ompanies like Hero /y"les td. @8:C?A, 5ujrat /y"les td. @8:;;A, Munjal )howa td. @8:;CA,

Ro"kman "y"les industries td. @8:?8A +t".

)in"e the "ompany maintains the ethos of 0erfe"t Huality, it has helped the group attain its global stature. 'esides maintaining the %uality standards it has de!eloped home>grown Resear"h 3 .e!elopment fa"ilities to enhan"e its produ"tion so as to stride further.

H!*TOR5 ( GROWTH
Under motor"y"le segment HHM is the market leader with (=E share in the market. Its nearest "ompetitor 'ajaj &uto has =(E market share . It's true that lot of Hero Honda's success is due to the fact that for a long time it operated in a near monopoly situation, it was the only 4 stroke motorbike & offered customer an incredible 85 km for e ery time . 'ut e!en with the "ompetition in the past few years, Hero Honda has effortlessly maintained its lead.

In the year 8:;;>;: the produ"tion 3 sales mounted to F((,98( nos. 3 F(,9=F nos. respe"ti!e 3 turno!er was Rs. 89(.C( "rore. In 8:;:>:9, the /ompany produ"ed 3 sold :?,B=C 3 :?=9; bikes respe"ti!ely. *he total turno!er at Rs. 8C=.?= "rores refle"ted an in"rease of :.CE o!er the pre!ious year when "ompared on an annuali$ed basis. *he "ompany introdu"ed a new model IsleekI during 7uly 8:;:. *he market response for the new model was reported to be satisfa"torily. .uring 8::9>:8, produ"tion rose to 8,=9,9:8 nos. 3 8=9,9CC motor"y"le were sold for a total "onsideration of Rs. 8:C.FC "rores.

In the domesti" market, "ompany was planning to laun"h a new Model Motor /y"le > /. 899)) suitable to semi rural "onditions. In the in"arnation front plans were aft to enter the &fri"an Market. 0ossibilities were being exposed to export motor"y"les in "ompletely kno"ked down "onditions to Iran 3 Mauritius.

In the domesti" market, the "ompany was reposed to ha!e an mkt share of (?E during 8::9>:8. .uring 8::8>:=, turno!er 3 produ"tion, in"reased to Rs. =FC.F= "rores 3 8BC=?9 no. .uring 8::=>:B turno!er in"reased moderately despite reassign in the automobile se"tor. Howe!er produ"tion was lower at 8, =;,?(: motor"y"les. .uring 8::=>:B, turno!er 3 produ"tion in"rease to Rs. B9F.=? "rores 3 8,=;,?(: motor"y"les respe"ti!ely. .uring 8::B>:( turno!ers impro!ed to Rs. B?:.:: "rores 3 0rodu"tion impro!ed to 8(;,999 motor"y"les. In the year 8::(>:C produ"tion 3 turno!er in"rease to 8, ;B,(:9 motor"y"le 3 2axD ?8( BB=8, ?8( B8:;

*TR,CT,RE O% COM+AN5

M!**!ON
Maintaining an international perspe"ti!e, the "ompany is dedi"ated to pro!ide highest %uality produ"ts at reasonable pri"e for World > wide "ustomer base.

COM+AN56* MANDATE
J *o be world "lass manufa"turer J *o be market leader. J *o a"hie!e high le!el of "ustomer satisfa"tion. J +x"ellen"e through teamwork. J +nduring relation unit stakeholder

COR+ORATE OB.ECT!-E*/

J *o study produ"ts of highest %uality at reasonable pri"e for "ustomers satisfa"tion 3 for the benefits of so"iety in general.

J *o pro!ide all "on"erned persons with happiness in asso"iation with the /ompany. J *o offer joy to !endors of supplying "omponents. J *o offer joy to employees of manufa"turing

*o offer joy to dealers of selling produ"ts. J *o offer joy to "ustomers of using produ"ts. J *o offer joy to in!estors of re"ei!ing returned.

NAME O% THE CHA!RMAN AND BOARD O% D!RECTOR*

No# 8

Name of t)e Dire&tors Mr. 'rijmohan all Munjal Mr. 0awan Munjal Mr. *oshiaki ,akagawa

Designation /hairman 3 Whole>time .ire"tor Managing .ire"tor 7t. Managing .ire"tor

= B ( C ? F ; :

Mr. *akao +gu"hi Whole>time .ire"tor Mr. )atyanand Munjal Mr. -m 0rakash Munjal Mr. *atsuhiro -yama Mr. Masahiro *akedagawa ,on>exe"uti!e .ire"tor ,on>exe"uti!e .ire"tor ,on>exe"uti!e .ire"tor ,on>exe"uti!e .ire"tor

Mr. ,arinder ,ath ,on>exe"uti!e 3 4ohra Independent .ire"tor Mr. 0radeep .inodia [email protected] 4ed 0rakash Malik Mr. &naljit )ingh ,on>exe"uti!e 3 Independent .ire"tor ,on>exe"uti!e 3 Independent .ire"tor ,on>exe"uti!e 3 Independent .ire"tor ,on>exe"uti!e 3 Independent .ire"tor ,on>exe"uti!e 3 Independent .ire"tor

89

88

8=

8B

.r. 0ritam )ingh

8(

Ms. )hobhana 'hartia

8C

.r. 4ijay axman ,on>exe"uti!e 3 6elkar Independent .ire"tor Mr. )unil 'harti Mittal ,on>exe"uti!e 3 Independent .ire"tor

8?

%ORE!GN COLLABORAT!ON

%ORE!GN COLLABORAT!ON
'y merging = different 0hilosophy Hero Honda philosophies was born. &s per the "ollaboration agreement between Honda Motors 3 Hero 5roup, Honda Motors was to furnish "omplete te"hni"al information, know how, trade se"ret 3 other rele!ant data to HHM 3 was to assist 3 guide in sele"tion of

e%uipment. *hey also agreed to train the te"hni"ians of the "ompany, to

pro!ide information about the "onstru"tion of the plant 3 on pro"urement of the "omponents. In "onsideration to their ser!i"es, HHM was to be paid a lump sum fee of U.). K C99,999 in B e%ual installments 3 a royalty of (E on the net ex>fa"tory 3 all pri"es of the produ"t. *he duration of the agreement was for a period of 89 yrs. from =8st 7une.

(;B.;C "rores due to growth in demand for = wheelers 3 de"lining infe"tion during the year 8::C>:?. *urno!er in"reased substantially to Rs. ?(9.F9 "rores 3 produ"tion was ==?=88..uring the year 8::?>:F turno!er impro!ed to F;B.;B "rores 3 produ"ts in"rease to =?;:B8 motor"y"les. & new step through model Istreet>899I with uni%ue feature was laun"hed on =(th 7anuary 8::=. .uring this year @:F>:;A "ompany has produ"ed 3 sold (9FC(? motor"y"les "ompared to =?;:B8 last years registering a growth of C8.CE. *urno!er grew by (;E to Rs. 88?9.F= "rores during the year. )treet 899 model has made a strange presen"e in the !ery first year of its laun"h. /onstituting around 89E of the total sales. In the year !""8#"" sales turno er has grown up to !55$".

*ALE* +ER%ORMANCE O% THE COM+AN5

COM+AN5 +ER%ORMANCE

Hero Honda maintained its grip in the motor"y"le segment with a lead of more than one million motor"y"les o!er its "ompetitor and a market share of (; per "ent. -!erall, your /ompany a""ounted for (9 per "ent of the Indian two> wheeler market. Total sales gre !" #$%& 'er (e)t to Rs% *+$#& (rores ,) -../0.1% S,2,larl"+ o'erat,)g 4,le 'ost0ta5 'ro3,t gre !" #6%* 'er

'ro3,ts rose !" #1%- 'er (e)t to Rs #+-/1 (rores

(e)t to Rs% 6$# (rores% Yo7r 8o2'a)" ,) aggregate sol9 a l,ttle o:er ; 2,ll,o) 7),ts ,) -../0.1 (o2'are9 to -%1- 2,ll,o) 7),ts ,) t4e 're:,o7s "ear+ a gro t4 o3 #&%/ 'er (e)t% T4e !est0sell,)g S'le)9or 3a2,l" 9o7!le9 sales 3ro2 1..+... to #%- 2,ll,o)%

*ALE* +ER%ORMANCE
HERO +,.)

Mar&)627

Mar&)628

Mar&)92:

Mar&)92;

Total *ales

=F=,B8=

=FF, :8C

B9,99,FC8

BB,B?,FC?

HERO HONDA *ALE*

'usiness Highlights for the 2inan"ial 1ear L Impressi!e growth dri!en by multi> pronged strategy, with a slew of new produ"t laun"hes a"ross segments, !alue>added ser!i"es, extensi!e B?9 degrees "ommuni"ation, 3 le!eraging longstanding Hero Honda brand properties for brand building L -!erwhelming "ustomer response to new laun"hes su"h as Hero Honda /'M N>treme, new 6ari$ma, 5lamour with alloy wheelsO new /. .eluxe 3 /. .awn L Redefined industry ben"hmarks in salesO posted re"ord despat"h sales and retail sales L

0ath>breaking two>wheeler te"hnology introdu"ed, in the form of 5lamour with 2uel Inje"tion @2IA te"hnology L &dded a new !enture P Hero Honda )ureQ for pre>owned motor"y"lesO another ben"hmark redefining initiati!e, sets up 8C su"h outlets a"ross the "ountry &"hie!ements for the 2inan"ial 1ear L HHM adjudged Fth *op Indian /ompany by Wallstreet 7ournal &sia L HHM ranked ,o.8 in /ustomer satisfa"tion index by /)MM>'usiness World oyalty Report L /'M N>treme awarded #'ike of the 1earR by -!erdri!e Maga$ine, ') Motoring Maga$ine and ,.*4 /ar India 'ike India &wards L Hero Honda 5lamour 2I &warded #'ike *e"hnology of the 1earR by ,.*4 0rofit /ar India 'ike India, and #&uto *e"h of the 1earR &ward by -!erdri!e maga$ine L Re"ord dispat"h sales of o!er B?B,(;9 units 3 retail sales of CB8,F8? units in a single month in -"tober L Retains the "o!eted position of being the World<s ,o.8 two>wheeler "ompany in unit sales for six years in a row ,ew .elhi, &pril 8, =99FD Hero Honda Motors td. @HHM A, "lo"ked sales of =FF, :8C two>

wheelers in the month of Mar"h, thus ending the finan"ial year =99?>9F with an impressi!e "umulati!e tally of BB,B?,FC? units. *he /ompany had registered sales of =F=,B8= units in Mar"h =99? and a "umulati!e B9,99,FC8 units in the pre!ious fis"al @=99C>9?A. *he finan"ial year =99?>9F witnessed the /ompany report impressi!e growth and re"ord sales, "onsolidate its market leadership, and bring about a series of industry defining initiati!es. &""ording to Mr. &nil .uo, 4i"e 0resident Marketing 3 )ales, HHM , #-ur well thought>out multi>pronged strategy helped us "arry on the strong growth

momentum during the finan"ial year =99?>9F. *he strategy has been to bring out produ"ts to meet "ustomer re%uirements a"ross segments, pro!ide !alue> added ser!i"es, support the new produ"ts with extensi!e B?9 degrees "ommuni"ation, and le!erage longstanding Hero Honda brand properties for brand building. We are sure of "arrying forward this momentum in the "oming finan"ial year too.R HHM laun"hed as many as eight new produ"ts @in"luding !ariantsA during =99?>9F. *his in"luded the highly su""essful CB4 30treme$ Ne< Kari=ma$ Glamour %!$ Glamour <it) allo' <)eels$ CD Delu>e$ CD Da<n$ +assion +lus imited +dition and the ,ew &"hie!er. While highly

popular brands su"h as )plendor and 0assion 0lus "ontinue to bring in the large !olumes and keep "onsolidating the "ompany<s stronghold on the deluxe segment, the newly>laun"hed /. .eluxe has been "lo"king impressi!e numbers to build HHM <s presen"e in the entry segment. *he other big laun"h, /'M N>treme has shaken up the premium segment, and has been "lo"king an impressi!e 8C,999 to =9,999 units per month. /'M N>treme has already "rossed the C9,999 mark in a !ery short time sin"e its laun"h late last year. It is the su""ess of these new produ"ts laun"hed during this finan"ial year, as also the aggressi!e marketing "ampaigns, whi"h ha!e helped HHM register better>than>industry growth "ontinuously in the last few months. SS

MOMENT* O% +R!DE

Lo<est A&&ident %re?uen&' Rate A<ard/ Re"ei!ed 2irst position award in 8:;:, 8::9, 8::=, 8::B 3 8::(. Longest A&&ident %ree +eriod A<ard/ 8:;:, 8::9, 8::=, 8::B 3 8::(. Best Wor ing Conditions/ 2irst pri$e in 8::9, 8::B. Re"ei!ed 2irst position award in

&wards also re"ei!ed for 'est Maintenan"e of +n!ironment 3 of +ffluent *reatment 0lant, 'est 0erforman"e, 'est 2irst &id &rrangements, ,ational )afety &ward 8::B under s"heme I 3 II, ,ational )afety &ward 8::( under s"heme I 3 II @&ll of them of 2irst 0ositionA. &nd for Regional Work skill /ompetitions in Miller *rade and in *urner *rade, /II Regional Huality /ir"le /on!ention of 7aipur, u"know &,. H/2I .elhi /hapter Huality /ir"le /on!ention et".O @&ll of )e"ond 0ositionA. &nd others like ,ational *rophy on Huality /ir"le, ,ational &ward for outstanding /ontribution *owards the de!elopment of small s"ale industries, .istinguished +ntrepreneurship &ward 8::F, 'usinessman of the 1ear 8::( "onferred on our /hairman.

WORK!NG +H!LO*O+H5 /

Hero Honda is the market leader among motor"y"le segment. Working 0hilosophy of HHM is the root "ase that has made it market leader. Hero Honda belie!es in #C)R i.e. %eiri # %elect &ecessary Items %eiton # %et &ecessary Items in 'ood (rder %eiso # %weep up )ork places %eiketsu # %ecure cleanliness at all times %hitsuke # %et Habit Hero Honda belie!es in I@ualit'I i.e. #Huality of 0rodu"tI, IHuality of -rgani$ation, IHuality of lifeI, I Huality of workerI. /ompany has suffi"ient supply all the C MTs re%uired to run a business i.e. material ma"hinery, money, manpower 3 Market. 'ut still "ompany is "ontinuously trying to impro!e the %uality of all these things. More o!er, /ompany is "ons"ious to supply high %uality to their "ustomers. Huality of manpower is simultaneously impro!ing through !arious programs. /o. is also impro!ing the Huality of produ"t by using latest te"hnology. )e"ondly "ompany belie!es in # DeAelopmentR i.e. I.e!elopment of

organi$ationR, #.e!elopment of employeesI 3 I.e!elopment of "ommunity # for the de!elopment of organi$ation. /ompany en"ourages meaning parti"ipation of its employees. /ompany has a new plant at 5urgaon i.e. the

result of "ompanies "ons"iousness about organi$ation de!elopment of its employees, "ompany is putting so mu"h effort that any organi$ation "an. /ompany has organi$ed is organi$ing 3 also is planning to organi$e !arious training 3 de!elopment programmers for all le!els of workers. *hese

programs ha!e result in "ontinuous growth 3 impro!ement of its employees. ,ow the "ompany is "ons"ious to the fa"t that growth 3 progress of its employees 3 the "ompany is interdependent. *he "ompanies strikes to "reate an atmosphere where team spirit 3 mutual understanding "ould grow 3 where its team members may work happily 3 deri!e joy 3 pleasure "ompany has also done a lot for the "ommunity de!elopment. /ompany has pro!ided its eye "amp, 'lood donation "amp, Rehabilitation "amp, .rinking water, ambulan"e 3 mobile "lini" for good health of people li!ing in near by !illages. 2or

pro!iding good edu"ation to them, "ompany has opened s"hool 3 "raft training "enter near the "ompany. /ompany also trying to maintain plantation 3 greenery to "ontrol pollution. /ompany trying to remo!es the problems fa"ed from grass root. .ignity of human being at all le!el. &ll +mployees at HHM are same. ,ext the "ompany belie!es in # E?ualit' B. I+%uality of "asteI +%uality of thought I +%uality of religion # ra"e, sex, nationality et". It respe"ts the dignity of human being at all le!el. Whether be, a worker of &.5.M. are wearing same dress, ha!ing same food 3 "oming by same bus.

&ll there things show that HHM

doesnTt differential between a worker 3

manager. .onTt e!en they "onsider their worker as Iwork toolI. 'y organi$ing *R&I,I,5 3 .+4+ -0M+,* programs for the self>de!elopment of worker "ompany tries to use brain of their worker be"ause they are e%ually responsible for the de!elopment of organi$ation.

+ROD,CT* O%%ERED B5 COM+AN5

+ROD,CT LA,NCHE*

2or more than two de"ades, Hero Honda "reated brand e%uity for itself by putting together best>in>"lass portfolios and new te"hnologies. 1our /ompany also laun"hed new engine platforms in 8=C"" and 8C9"" "ategories, and is planning se!eral new laun"hes in the forth"oming year. WeT!e already introdu"ed "utting>edge 2uel Inje"tion te"hnology in one of our produ"ts, 5lamour 2I, making Hero Honda the first two>wheeler /ompany in India to do so. -!er time, we expe"t to "as"ade this te"hnology a"ross other models. &part from su""essfully laun"hing of ( new models during the year in re!iew, your /ompany made its debut in the s"ooter market with the 899"" offering "alled #0leasureR targeting women "ommuters and home makers. *he produ"ts, whi"h are mostly sold through a "hain of uni%ue all>women retail outlets, were re"ei!ed well by the market, and we hope to gain "riti"al mass o!er the next few year.

Hero Honda +rodu&ts

CD DAWN CD0DEL,3E +LEA*,RE *+LENDOR +L,* *+LENDOR N3G +A**!ON +L,* *,+ER *+LENDOR GLAMO,R GLAMO,R +GM %! ACH!E-ER

CB4 30TREME H,NK KAR!4MA

HERO HONDA CD 0122

*+I,,#I-, %H.-#I-, +(/'0-#I- * Hero Honda /.>899 is the main, first ( stoke 899 "" motor"y"le of India that has set standards in the Indian = wheelers Industry. *he reasons for its popularity are apparent +"onomy, Huality, Reliability 3 /apability to go on year after year. ItTs engine is deri!ed from HondaTs egendary e"ono series for motor"y"les that ha!e pro!ed their toughness 3 reliability around the hold for the last BC years, ha!ing sold o!er B9 millions units house wise. &nd a"e to 1r. %oichiro Honda, the founder of Honda 1otor 2ompany , the engine has been upgraded o!er the years to a"hie!e the highest le!el of performan"e. -ther 2eatures are

%EAT,RE*
>0henomenal fuel effi"ien"y >+"onomi"al 3 easy to maintain >,ation>wide ser!i"e )upport >Impro!ed, easy to read, illuminated )peedometer >)wing arm with Hydrauli" .ampers

HERO HONDA *LEEK

*he need for a stylish looking bike ha!ing Hero HondaTs famous fuel e"onomy ga!e birth to sleek, the most beautiful bike on Indian Roads, in %eptember !"8". It is a bike designed with the flair of International styling 3 meant to arouse ex"itement in man who is dri!en by something beyond the ordinary. )leek always has its effe"t on people be"ause of the reasons like

%EAT,RE*
>Mo!es you e!en when it is standing still with a ra"y, streamlined sides >+asy rider with new profile Handlebar 3 single>pie"e moulded seat >2uel +ffi"ien"y >*rendy "olours 3 slim good looks >2rom H+R- H-,.&, after all

HERO HONDA CD DEL,3E

*/(.'H & /.''03 *

HHM Ts "ommitment to its "ustomer took the shape of /. .+ UN+ whi"h was laun"hed in =999.It adds a new dimensions of strength to HH<s world famous (>)troke *e"hnology. It is another tough mobike >represents *oughness 3 &bility to handle e!en off the road for riding "ondition. &ll meant to make the bike safer, sturdier 3 more stable than before #

%EAT,RE*
Wider tyres to grip the road arger, reinfor"ed )ho"k absorbers>to soak up bumps on unkind roads Hea!ier body weight> to ensure balan"e 3 strength )pe"ial +ngine guard> to prote"t it from assault of sand, mud 3 stones et".

HONDA *+LENDOR
*30%I'&03 -( 0420, * )tylish fuel e"onomy bike, ha!ing high mileage and suspension power. ex"ellent speed and !elo"ity

%EAT,RE* .esigned to ex"el in field of te"hnology. High suspension +asy handling of brakes

+assion plus
It is a bike designed with the flair of International styling 3 meant to arouse +x"itement in man who is dri!en by something beyond the ordinary #

%EAT,RE* 2amous(>)troke*e"hnology. )tylish, smart looking, ex"ellent fuel effi"ien"y

>*rendy "olours 3 slim good looks

GLAMO,R
,ew style of new generation.8=C "" bike with high style fuel "apa"ity. bike is fa"ilitated with high world effi"ient te"hnology.glamourous passionate looks.

%EAT,RE* )tylish look +ffi"ient fuel "apa"ity up to 8? liters ,ew range of handling "apa"ity 2eaturing fuel ignition te"hnology 4aried "olours and styles

5 &M-UR 05M 2I
2eaturing the 7apanese te"hnoly of handing the fuel>ignition linkage in "ase of sudden stoppage or a""ident. ,ew te"hnology has added a landmark in the field of speed, )tyle, "omfort and luxury

ACH!E-ER
&"hie!er has a"ted as a land mark of speed and passion lo!ing for new 5eneration. ,ew designed high framed engines )peed rea"hing in speedometers upto 8;9 km. ,ew age of automobiles. +lasti","ool,upwards straight seats. 'ikes ranging in !arious lo!able "olours.

CB4 3TREME
2ifth generation bikes,huge mileage,well fuel effi"ien"y )ports bike main stress on sped and looks R0M ranging upto C999rpm. Handling is "omfortable 9>:9 km in just ? se"onds. o!ely rash "olours

H,NK
&"ting as a ma"hine horse High in e!ery field sped,"omfort,mileage,style,looks,features. /reating $ero noise pollution +x"el in 7apanese measurement ofme"hanism. 2uel tank stylish and big *rendy pleasing look for hea!y luxurious people

KAR!4MA
4aried luxurious "olours Hea!y gaint appealing look,featuring high sped. &ntilo"king system /ostlier and noise less 2eaturing a new range of ele"troni" meter ights and looks are trendy

+ROBLEM* %ACED B5 THE COM+AN5

!ND,*TR5 CHALLENGE* AND O++ORT,N!T!E*

*he Indian two>wheeler industry saw an in"rease of 8C per"ent during the year. *wo>wheeler sales "rossed F.C million units mark, whi"h a""ounted for more than ;9 per"ent of domesti" auto sales. Motor"y"les shared around ;= per"ent of the entire two>wheeler sales. Howe!er, industry margins "ame under some pressure during the year in re!iew be"ause of an in"rease in input pri"es of steel, aluminum and rubber. -perating margins were also affe"ted on a""ount of errati" power supplies and high "osts of ba"k up power.

,e!ertheless, the upside potential for the future is still extremely high be"ause of the sheer potential for !olume growth. I belie!e that your /ompany has barely s"rat"hed the surfa"e in terms of optimi$ing potential. &""ording to ,/&+R, there are about ==C million people P about == per "ent of the populationUwho li!e in households that ha!e an annual in"ome range of Rs. :9,999>=99,999. arge towns @population of o!er C99,999A ha!e about B9 per "ent of this population, while rural India has about half of this in"ome group. *hese groups are the real growth engines for the great Indian dream, be"ause at these le!els, a number of inspirational and dis"retionary pur"hases @whi"h in"ludes two>wheelersA are within rea"h. &gainst this ba"kdrop, your /ompany should be able to "omfortably sustain double>digit growth in the medium to long term, despite in"reasing "ompetition.

OB.ECT!-E* O% THE *T,D5

OB.ECT!-E*
*o analyse the so"ial status, e"onomi" status, tastes, preferen"es, reasons behind pur"hase of Hero Honda /ustomers. *o o!er!iew !arious Hero Honda produ"ts image among "ompetitors *o prote"t "ustomers interest for "ompanies produ"ts *o make an o!erall assessment of spe"ified market to pro!ide a better new age of automobile industry

RE*EARCH METHODOLOG5

RE*EARCH METHODOLOG5

#5ll progress is born of in6uiry, doubt is often better than o er confidence for it leads to in6uiry leads to in ention R is
a famous Hudson7s di"tum in "ontext of whi"h the signifi"an"e of resear"h "an well be understood.

1. I !isited the dealers 3 "ustomers and gathered information re%uired by the %uestionnaire.

2. 2or employing strong based to the resear"h I tried to in%uire the positions of H+R- H-,.& M-*-R) *.., motor"y"les and how satisfied they are with them if they are already selling those.

3. 2inal ranks were obtained by gi!ing weight to indi!idual ranks possessed by the respondent to make the resear"h more reliable. /oding and tabulation of data were made for the purpose of analysis and to gi!e it a graphi"al !iew.

RE*EARCH +,R+O*E
*o analy$e "ustomers buying beha!ior regarding leading brands of Hero Honda *o identify the major segment of bike lo!ers *o know there re%uirements regarding features, mileage

RE*EARCH DE*!GN
+xploratery and .es"ripti!e resear"h *ample surAe'/ Retailers and "ustomers @8C9A Area of surAe'D .elhi and ,oida Data t'peD 0rimary data and se"ondary data *ample sele&tionD /on!enien"e Data &olle&tion met)od
*he data for resear"h report was "olle"ted by "ustomers during marketing of produ"ts and with retailers

RE*EARCH !N*TR,MENT

@uestionnaire and oCserAation are two basi" methods of "olle"ting primary data. In our study we ha!e employed both the methods for the "olle"tion of primary data that suffi"es all resear"h obje"ti!es. )e"ondary data sour"es like &atalogue of &ompan'$ produ&t range Coo of t)e &ompan' are also used.

DATA ANAL5*!*

GRA+H!CAL RE+RE*ENTAT!ON TAB,LAR RE+RE*ENTAT!ON

 GRA+H!CAL RE+RE*ENTAT!ON

'rand &wareness among the "onsumer based on 8st response No of respondentsD172

?9 C9 (9 B9 =9 89 9 Hero honda 'ajaj -thers ,o. of "ustomer Eage

%amiliarit' of Brands in four stro e segment

No of respondents Brand Name HERO HONDA BA.A. T-* LML No of &ustomer F7 :2 H7 H7 Eage G8#88 FH#; 18#88 18#88

H+R- H-,.& '&7&7 *4) M

TAB,LAR RE+RE*ENTAT!ON

HERO HONDA CUSTOMER PROFILE ANALYSIS AGE Iin aCsolute figures and EJ
&ge@1rsA 8;>=C =?>B9 B8>BC B?>(9 (8>(C (?>C9 C93abo!e '&)+ /. 899 : B=.8( : B=.8( C 8F.;C = F.8( = F.8( 8 B.CF 9 9 =; /. deluxe 8B =:.C 8B =:.C F 8? F 8? C 88.( 8 =.B 9 9 (( )0 +,.-R 9? BC.; =8 =;.; 89 8;.( F F.8 F B.B C (.F ( 8.: ?9 ; C 8 = 9 9 9 8? 6&RIMM& C9 B8.B ?.B 8=.C ?.=C 9 9

ED,CAT!ON Iin aCsolute figures and EJ

+.U/&*I-, Upto matri" H)/G))/ &ttended /ollege .iploma 5raduate 0ost 5raduate 0rofessional .egree '&)+

/. 899 F =C ? C 8 F 8 8 =; =8.( 8F.: B.? =C B.? B.?

/. deluxe 8B.? =C 8B.? 8;.= 8C.: 8B.? 9

HU,6 =( 88.B =C =8 =C =9 8= =C ?9 88.; :.: 88.; =;.B 8C.8 88.;

/'M = ( B = = 9 B 8? 8=.C =C 8;.; 8=.C 8=.C 9 8;.FC

88 ? ; F ? 9 ((

OCC,+AT!ON Iin aCsolute figures and EJ

-//U0&*I-, /. 899 )tudent = F.8 -ffi"erGexe"uti!e -wn )hopG*rader 'ussinessGindustry )elf +mployed 2armerGfarm related Retired Unemployed -thers 8 B.? ; =;.? ( 8(.B C 8F.: ? =8.( 9 9 8 B.? 8 B.? '&)+ =;

/. deluxe F 8?

)0 +,.-R BF 8F.C

6&RIMM& F (B.FC

89 89 : C 9 8 8 8 ((

==.F ==.F =9.C 88.( 9 =.B =.B =.B

=( == =: 8B = 9 C 8? ?9

B9.= 8C.8 8B.F 8C.? .: 9 =.( F.C

= = ( 9 9 9 9 8 8?

8=.C 8=.C =C 9 9 9 9 ?.=C

!NCOME Iin aCsolute figures and EJ

I,/-M+ Upto C999 C998>F999 F998>89999 89998>8C999 8C998>=9999 =9998 3 abo!e '&)+

/.899 89 BC.F C 8F.: C 8F.: ; =;.? 9 9 9 9 =;

)0 +,.-R 89 ==.F 8B =:.C 8C B(.8 C 88.( 8 =.B 9 9 ((

HU,6 9C 8? 9? == ; 8C ?9

8?.? BC.; =?.( 89.( B.; F.8

9 9 = = ( ; 8?

/'M 9 9 8=.C 8=.C =C C9

!NTEN*!T5 O% +,RCHA*E Iin aCsolute figures and EJ

I,*+)I*1 /.899 -2 0UR/H&)+ ,e!er -n"e 88 B:.B *wi"e *hree times 2our times and abo!e : B=.8 ? =8.( = F.8 9 9 '&)+ =;

/. deluxe =F ?8.(

)0 +,.-R C9 ((.? 8B

6&RIMM& ;8.B

88 ? 9 9 ((

=C 8B.? 9 9

(9 8C ( B ?9

BC.F 8B B.? =.F

B 9 9 9 8?

8;.; 9 9 9

+,R+O*E O% ,*E Iin aCsolute figures and EJ

0UR0-)+ -2 U)+ /ommuting to and from work 5oing to s"hool 3 "ollege 5oing out with family /arrying goods or bussiness -ffi"eG bussiness related tra!el -thers '&)+

/.899 88 F F 8 = B:.B =C =C B.? F.8 8; F ; B C

/.deluxe (8 8? 8;.= ?.; 88.(

)0 +,.-R 8( B9 8; 89 8B CB.; 8(.= ;.C (.F =?.( = F = 9 C

/'M 8=.C (B.; 8=.C 9 B8.B

9 =;

9 ((

9 ?9

9 8?

,*AGE AREA Iin aCsolute figures and EJ

U)&5+ &R+& /.899 With in "ity -n 8C CB.? highways Rural areas C 8F.: ; =;.? '&)+ =;

/.deluxe =; ?B.? ; ; (( 8;.= 8;.=

)0 +,.-R (9 ;B 88.F ; ?9 8B.= B.;

: C = 8?

/'M C?.B B8.B 8=.C

RE*!DENCE Iin aCsolute figures and EJ

R+)I.+,/+ /.899 /ityGUrban area 8B (?.( 4illage 8C CB.? 8;.; =;

/.deluxe =: ?C.: 8C (( B(.8

)0 +,.-R (? :B.( 8( ?9 ?.?

/'M 8B ?.? 8? ;8.B B

!NTER+RETAT!ON

AGEW!*E /

Hero Honda bikes are more popular among age group8;>B9yrs.

OCC,+AT!ON W!*E/
-ffi"erG+xe"uti!es and Industry related people ha!e an important role to play in pur"hase of all kinds of bikes. Retired and unemployed are found to be least interested.

!NCOMEW!*E
High>in"ome groups and !ery high>in"ome groups @i.e. abo!e 8C999A ha!e a !ery limited share in pur"hase. Majorly preferred by people falling in in"ome group upto Rs. 89999.

REA*ON* %OR +,RCHA*EW!*E D

5ood looks, ease of dri!ing and fuel e"onomy are the main reasons for

pur"hase of all Hero Honda bikes. /'M has been su""essful in attra"ting "ustomers be"ause of its features like good looks, ease of dri!ing, disk brakes et".

ED,CAT!ONW!*E /

-!erall edu"ational le!els are low. Respondents up to metri", H)/G))/ and graduates are more a"ti!e than the post graduates and the professional degree holders. )hare of professionals is "onsiderably low.

,*AGEW!*E /
&ll the bikes are majorly used within the "ity only. Use in !illagesGrural areas is !ery low.

+,R+O*E O% ,*E /
*he major purpose of usage is "ommuting to and from work. -ffi"e and business related tra!els also a""ounts for a "onsiderably per"entage of usage.

RE*!DENCEW!*E /
& major portion of buyers is residing in urban areas. *he numbers of buyers residing in rural areas is "onsiderably low in "ase of )0 +,.-R and less in "ase of /'M.

!NTEN*!T5 O% +,RCHA*E W!*E

2irst time pur"hase pre!ailing. ess repeated pur"hases.

*WOT ANAL5*!* O% HERO HONDA MOTER L!M!TED

*TRENGTH
*e"hni"al and finan"ial "ollaboration with Honda. Wide range of motor bike +xtensi!e resear"h and de!elopment both in house de!elopment fa"ility interfa"e with other independent engineering units. arge and "ompetiti!e workfor"e. 0rodu"ing "hallenging produ"t in market

WEAKNE**
Insuffi"ient in "apturing the southern market in India. ,ot using brand loyalty for the "ustomers

O++ORT,N!T5
'oast up produ"tion to fully utili$e the installed "apa"ity *o take the monopoly in motor !ehi"le "ategory where the "ompetition is mu"h more in"reased.

+ffe"ti!ely meet the demand "reated by way of operation !i"tor "reating awareness among the rural "onsumers.

THEARAT*
)e!er "ompetition by light motor and hea!y !ehi"le fa"ed from the side '&7&7. )tiff "ompetition with '&7&7 &U*- whi"h has now in"rease market with a"ti!e parti"ipation in both northern and southern market.

/hange in 5o!ernment fis"al poli"y towards import and "ustomer duty.

%!ND!NG*

*he age group ==>BC year figures out to be !ery mu"h aware regarding to wheelers.

Mileage was gi!en top priority )tyle and power "onsidered most pur"hasing 0ower0oint today. 0eople want to less maintenan"e of two wheelers. *he per"ent of rural and urban market is as BCE and ?CE.

RECOMMENDAT!ON* AND *,GGE*T!ON*

RECOMMENDAT!ON*

It seems that Hero Honda has not been su""essful in penetrating the rural market. *here is a large s"ope for the "ompany in rural areas. Marketing efforts should be dire"ted towards the rural segment. Massi!e

ad!ertisement with highly spe"iali$ed ad>message towards people in rural areas should be made. Repeated extending !arious promotional s"hemes su"h as +x"hange offer should en"ourage pur"hases, Road *ax off offer et" whi"h ha!e been already adopted in "ase of )treet to others models. /'M has been su""essful in attra"ting "ustomers be"ause of its spe"ial features and good looks. )u"h features should be fo"used in ad!ertisement messages. 0rofessionals ha!e a low share in pur"hase. *hey should be targeted with a bike to suit their personality and re%uirements. High>in"ome groups and !ery high>in"ome groups should be targeted as they also ha!e a slow share in pur"hases. & new high pri"ed bike "an be laun"hed to attra"t them with highly spe"iali$ed uni%ue features

CATCH5 CA+T!ON*

B5our life is an asset for 'our famil'$ <e are liaCle for it B# 0HH Motors

BWe no< )o< mu&) 'our famil' &ares for 'our safet'# We too B# 0HH Motors

BWe Care"# 0HH Motors

A++END!3

B!BL!OGRA+H5

BOOK* M&R6+*I,5 M&,&5+M+,* 2U,.&M+,*& ) -2 M&R6+*I,5 0HI I06-* +R W. )*&,*-,

NEW*+A+ER* *H+ I,.I&, +N0R+)) *H+ *IM+) -2 I,.I& *H+ +/-,-MI/ *IM+)

MAGA4!NE* I,.I& *-.&1 'U)I,+)) W-R . WEB*!TE H+R-H-,.&./-M

@,E*T!ONNARE

@,E*T!ONNARE

CON*,MER O+!N!ON REGARD!NG LEAD!NG BRAND O% HERO HONDA B!KE !N !ND!A

NAME AGE +RO%E**!ON !NCOME ADDRE** DATE / / / / / D

C,*TOMER *AT!*%ACT!ON

8. ,ame of the brand you are familiar with in the two wheeler segment. 8.Hero Honda =.'ajaj B.-thers

=. &re you satisfied with the "ompany ser!i"e pro"essV 8. 1es =. How mu"h per"ent of repeat 'usiness. 8.=C =.C9 B.FC (.,one of them =.,o

(. .o you know that H+R- H-,.& is going to laun"h ,ew produ"t #M-*-R /1/ +RV 8. 1es =.,o

C. How mu"h importan"e you gi!e to the mind set of your family regarding bike buyingV &. +xtremely important /. )ome what important '. 4ery important .. ,ot !ery important

?. ist the features in a row that you will prefer first while pur"hasing a new model. 8. +N*+RI-R )*1 I,5 =. 0RI/+ B. 'R&,. ,&M+ (. )&2+*1 C. /- -UR ?. *+/H-,- -51 F. MI &5+ ;. +,5I,+ /&0&/I*1 :. W&R&,*

F. .o you use your bike for family business or just a rideV 8. 2amily =.7ust for fun

;. &re you satisfied with the ser!i"e performan"e of Hero Honda, how would you rateV 8. &!erage B. +x"ellent =.'etter (.-utstanding