CHAPTER 1

INTRODUCTION

1. INTRODUCTION

1.1 GENERAL INTRODUCTION TO THE STUDY Two-Wheeler industry is one of the largest industries in the automobile sector of global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last decade, well-directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. Presently many international brands like Honda, Suzuki, etc. are competing with Indian brands such as Hero Honda, Bajaj, and T V S, Kinetic etc. to capture Indian markets. These aggressive marketing strategies have resulted in making the consumer the major key for success in the industry. Each product offering is now designed to meet and exceed the expectations of the consumer. But understanding consumer behaviour and knowing consumers is never simple. And it is more difficult that to understand what a consumer perceives about the product. Customers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their minds at the last moment. Small companies such as a corner grocery store and huge corporations stand to profit from understanding how and why their consumers buy.

1.2 THEORETICAL BACKGROUND OF STUDY

1.2.1. Market

The term market may be considered as a convenient meeting place where buyers and sellers gather together for the exchange of goods and services. Market means a group of people having unmet wants, purchasing power to make their demand effective and the will to spend their income to fulfill those wants. Today a market is equated with the total demand. The American marketing association defines a market, as the aggregate demand of potential buyers for a product or service. Under keen competition, a marketer wants to create or capture and retain the market i.e. customer demand through an appropriate marketing mix offered to a target market. The market offering i.e. supply must meet customer demand, which are unmet needs and desires. 1.2.2. Marketing Marketing is a comprehensive term and it includes all resources and set of activities necessary to direct and facilitate the flow of goods and services form the producer to the consumer through the process of distribution. Businessmen regards marketing as a management function to plan promote and deliver products to the clients or customers. Human efforts, finance and management constitute the primary resources in marketing. We have twin activities, which are most significant in marketing: 1. Matching the product with demand i.e. customer needs and desires or the target market. 2. The transfer of ownership and possession at every stage in the flow of goods from the primary producer to the ultimate consumer.

The American marketing association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

1.2.6. Marketing Research

Marketing research is the systematic gathering, recording and analyzing of the data about problems connected to the marketing of goods and services i.e. problems relating to product, price, promotion and distribution of the 4ps of the marketing mix. Marketing research is concerned with all those factors, which have a direct impact upon the marketing of products and services. Marketing research has grown along with the expanded role of marketing as the focus for the business decision-making. Need of marketing research Marketing research is conducted for different purposes. They are: 1. To estimate the potential market for a new product. 2. To know the reactions of consumers to a product already existing in the market. 3. To find out the general marketing condition and tendencies. 4. To know the types of consumer buying and their buying motives. 5. To know the reactions of failure of a product already in the market. 6. To assess the strength and weakness of competitors. 1.2.7 Customer A person who purchase or has the capacity to purchase the goods of service often for sale by the marketing firm in order to satisfy personal need and desires.

1.2.8 Perception Perception is the sensing of stimuli external to the individual organism the act or process of comprehending the world in which the individual exists.

Perception has been defined by social psychologists as the Complex process by which people select organize and interpret sensory stimulation in to a meaningful and coherent picture of the work.

1.2.11. Major Factors Influencing Consumer Behavior

Consumers buying behavior is influenced by cultural, social, personal and psychological factors. 1. Cultural Factors Cultural factors exert the broadest and deepest influence on consumer behavior. The roles played by the buyers culture, subculture and social class are particularly important.

o Culture

Culture refers to that complex whole which includes in it knowledge, beliefs, art or anything man acquires as a member of society.

o Subculture

Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Sub cultures include nationalities, religions, racial groups and geographic regions.

o Social Class

Virtually all-human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different castes are reared for certain roles and cannot change their caste membership more frequently; stratification takes the form of social class.

2. Social Factors

o Reference Groups A persons reference groups consists of all the groups that have a direct or indirect influence on the persons attitudes or behavior.

o Family The family is the most important consumer buying organization in the society and it constitutes the most influential primary reference group.

o Roles and statuses A person participates in many groups, family, clubs, organizations etc. The persons position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status.

3. Personal Factors

o Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes, furniture and recreation is all age related.

Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups as their target market.

o Occupation and economic circumstances

Occupation also influences a persons consumption pattern. Product choice is greatly affected by economic circumstances; spendable income, savings and assets, debts, borrowing power and attitude toward spending versus saving.

o Lifestyle

People from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is the persons pattern of living in the world expressed in activities, interests ands opinions. Lifestyle portrays the world person interacting with his or her environment.

o Personality and self concept

Each person has a distinct personality that influences buying behavior. It is that distinguishing psychological characteristics that lead to relatively consistent and enduring responses to environment. Related to personality is self-concept or self image. Marketers try to develop brand images that match target markets self image.

4. Psychological Factors

o Motivation

A person has many needs at a given time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act.

o Perception

Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. How a, motivated person actually acts is influenced by his or her perceptions of the situation.

o Learning

When people act they learn. Learning involves changes in an individuals behavior arising from experience. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and positive reinforcement.

o Beliefs and attitudes

Through doing and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. The beliefs make up product and brand images and people act on these images. An attitude is a person enduring favorable or unfavorable evaluations, emotion feelings and action tendencies toward some object or idea. Thus a company would be well advised to fit product into existing attitudes rather than try and change peoples attitudes.

1.3 Objectives of the Study

1) To analyze consumer perception towards Hero Honda motor bikes 2) To get feed back on what consumer expects from Hero Honda 3) To analyze consumer perception towards services offered by Hero Honda and
performance of the motor cycle

4) Develop skills in report writing through data collection, data analysis, data
extraction, and presentation.

1.4 Scope of the study The study helps in having an awareness of customer satisfaction towards Hero Honda. As the product had a good reputation in the market, this study will help to know that how Hero Honda lost their grip in motor bike industry. It also helps us to increase our practical knowledge towards marketing of a company.Marketing is taken as the functional area as the customer satisfaction is to be taken into account.

1.5 Company Profile 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. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. 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. Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company 9

grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built. The Brand Trust Report published by Trust Research Advisory has ranked Hero Honda in the 13th position among the brands in India. Product range
Sleek Street Achiever Ambition 133, Ambition 135 CBZ, CBZ Star, CBZ Xtreme CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Karizma, Karizma R, Karizma ZMR FI Passion, Passion Plus, Passion Pro Pleasure

Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor NXG,Splendor PRO Hero Impulse launched in 2011 after the separation of hero and Honda. Its India's first offroad and on road Bike.

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CHAPTER 2

RESEARCH DESIGN

11

2. RESEARCH DESIGN

2.1 Introduction The two wheeler industry in India collectively produces 20 Lakh vehicles a year. Some players have managed to cut through consumer resistance with innovation, pricing and aggressive marketing. The competition level in the two wheeler industry is very high now. Many brands are fighting in the market for maximum share. They have to bring out a lot of differentiation among them. The major duty of the marketer is to know the reasons for preferring particular motor bike by the consumers. 2.2 Review of Literature The Customer Perception Report includes questions in four key areas, Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the customer should be invited to participate in the survey. Setting realistic expectations during the sales process is a vital component of making happy customers. How a company sets and meets product and service expectations plays a pivotal role in fashioning customer opinions. How a company meets or exceeds expectations is measured in three important areas: product/service, support, and price. These three areas will be used to factor a score for the Expectations category. The results of the three questions will be used to factor an overall expectations perception score. The Purchase Decision category gives us a better understanding of how the customer perceives the purchase process. Two key areas for questions include an open ended question on why they purchased and a ratings question on their experience. The rating Question data will be used for the analysis of Purchase Decision category. The open ended responses from the Why questions will be used for product strengths analysis. The results of the purchase experience question will be used for the overall Purchase perception analysis. Customer service is one of the most important differentiations a company can have. For this report, customers will rate a company in three key areas: customer service, timeliness for problem resolution, and expertise. These three areas will be used to factor a score for the Customer Service category. 12

Purpose of Literature Review

Literature review is one of the prime parts of every project. The very basic purpose of the literature review is to gain insight on the theoretical background of the research problem. It helps the researcher to gain strong theoretical basis of the problem under study and also help to explore whether any one has done research on the related issue. Thats why literature review helps one to find out the path of problem solving. In this regards the very basic purpose of the literature review in this dissertation is same as mentioned

2.6 Methodology The research will be done through survey method. The collection of data will be done through questionnaire, interview and related websites The sample size taken for this research is 100 customers those who having Hero Honda motor bikes. The area of this survey consist of Bangalore city The collection of data will be done with the help of a structured questionnaire. The designing of questionnaire needs precision and classification of the subject, so that the respondents can easily understand the question and can answer it sincerely and correctly. 2.7 Sources of Data Primary data:Primary data consists of original information for the specific purpose at hand. It is first hand information for the direct users of respondents. The tools used to collect the data

13

may vary and can be collected through various methods like questionnaire, personal interview Secondary data:Secondary data is the data which is already been collected and assembled. This data is available with the companies or firms and it can be collected from newspapers, periodicals, magazines, websites etc.

Sample Design Sample The sample size taken for this research is 100 customers having Hero Honda motorbikes. Sampling Technique Convenient Sampling technique is used for this project. Data Collection Tool Questionnaires as the primary form of collecting data. Statistical techniques 1. Bar Diagrams 2. Pie-Chart Statistical tools 1. Statistical software like Microsoft Excel 2.9 Limitations of the study:a) In this study it is not possible to collect the opinion of all the customers owing to personal constraints. So the assumptions are drawn on the basis of the information given by the respondents. b) The study needs to be completed within a specified time of one month and in certain restricted areas. So the findings cannot be generalized for the company as a whole.

14

c) This study covers only a limited Hero Honda sector. So this study will not be applicable for those areas. 2.10 CHAPTERIZATION 1. Introduction 2. Research Methodology

3. Profile of the Industry and Company 4. Analysis of the Data Collected 5. Findings, Suggestions and Conclusion Bibliography Appendix

15

CHAPTER 3

PROFILE OF THE INDUSTRY AND COMPANY

16

3.1 INDUSTRY PROFILE

CHAPTER 4

ANALYSIS AND INTERPRETATION OF DATA

17

4. 1 ANALYSIS OF DATA COLLECTED Consumer Perception towards HERO MOTOCORP Motor Bikes in Bangalore City
Statement of Problem Stepping down of Hero Hondas position form a market leader to an ordinary market survivor has posed and alarming condition before the company. The present study would like to have an insight of consumers perception about the criteria of selecting the bikes. Especially to figure out whether it is brand driven or quality driven Before five years Hero Honda was the market leader in motor bike industry in India. But in now a day they are losing their grip in motor bike industry, none of their bike except Splendor became a success. And the competitors like Bajaj and TVS has taken advantage of this. There is no doubt that the companies market share is falling down. So this study will help to understand and identify what the consumer feels or perceives about Hero Honda motor bikes. This will help the marketer to identify which all are the factors that a consumer looks in to when he selects a particular bike. And also explains how a consumer selects and interprets the qualities of bike that Hero Honda offers. Objectives of the Study 1. To analyze consumer perception towards Hero Honda motor bikes 2. To get feed back on what consumer expects from Hero Honda 3. To analyze consumer perception towards services offered by Hero Honda and performance of the motor cycle

18

Methodology The research will be done through survey method. The collection of data will be done through questionnaire, interview and related websites The sample size for this research is 100 customers those who having Hero Honda motor bikes. The area of this survey consist of Bangalore city The collection of data will be done with the help of a structured questionnaire. The designing of questionnaire needs precision and classification of the subject, so that the respondents can easily understand the question and can answer it sincerely and correctly. Sources of Data Primary data:Primary data consists of original information for the specific purpose at hand. It is first hand information for the direct users of respondents. The tools used to collect the data may vary depend can be collected through various methods like questionnaire, direct personal interview Secondary data:Secondary data is the data which is already been collected and assembled. This data is available with the companies or firms and it can be collected from newspapers, periodicals, magazines, websites etc.

19

Analysis of the Data Collected

4.1.1 Gender of the Respondents

Table No 4. 1 GENDER NO OF RESPONDENTS % OF RESPONDENTS

MALE

96

96%

FEMALE

4%

TOTAL

100

100%

Source: survey data

Interpretation: The above table showing the sex of the respondents those who participated in the survey

20

Chart No 4.1

Gender of Respondents

Male Female

Analysis: Above 90% of respondents of the survey were male customers and there were only a few female respondents.

21

4.1.2 Age of the Respondents

Table No 4. 2 AGE NO. OF RESPONDENTS 42 % OF RESPONDENTS 42%

18-25 34 25-40 19 40-55 5 ABOVE 55 100 TOTAL Source: survey data Interpretation: The above table showing the age categories of the Hero Honda customers who participated in the survey . 100% 5% 19% 34%

Chart No 4.2

22

Age of the respondents

45 40 35 30 25 No of Respondents 20 15 10 5 0 18-25 25-40 Age 40-55 >55

Analysis:

23

Above 40% of the participants of the survey were between18-25 of age and second most participants were between25-40. There were only 5 participants responded above 55 age group

4.1.3 Occupation of the Respondents

Table No 4. 3 Occupation Business Professional Employee Student Others No of Respondents 18 14 20 38 10 % of Respondents 18% 14% 20% 38% 10%

Total

100

100%

Source: survey data

Interpretation:

24

The above table showing the occupation of the Hero Honda owners those who participated in the survey and their percentage wise analysis

Chart No 4.3

Occupation of the Respodents

Analysis: 25

The majority of the Hero Honda customers participated in the survey were students. There were 38% and the 20% employees who are Hero Honda owners. And the Professionals and Businessmen constitute only 32%.

4.1.4 SOURCES OF AWARENESS OF HERO HONDA

Table No 4. 4 SOURCE ADVERTISEMENT FRIENDS RELATIVES OTHERS TOTAL

NO. OF RESPONDENTS 38 24 10 28 100

% RESPONDENTS 38% 24% 10% 28% 100%

OF

INTERPRETATION: -

26

The above table tells about which of the source is more effective in spreading the awareness about Hero Honda bikes

Chart No 4.4

SOURCES OF AWARENESS OF HERO HONDA 38% 40.00%

% of Respondents

30.00%

28% 24%

25.00%

20.00%

1 5.00%

10%
1 0.00%

5.00%

0.00% ADVERTISEMENT FRIENDS RELATIVES OTHERS

Status
Analysis: This statistic reveals that greater part of respondents have got the information from T.V and advertisement other than friends & relatives which plays an important role in influencing them to opt for Hero Honda. This reveals that Hero Honda is able to influence its consumer base to tell other about their product.

27

4.1.5 SATISFACTION ABOUT PRODUCT BRIEFING DONE BY SALES EXECUTIVE

Table No 4. 5 SATISFACTION NO. RESPONDENTS YES 92 OF % RESPONDENTS 92% OF

NO

08

08%

TOTAL

100

100%

Source: survey data

28

INTERPRETATION: This table showing the satisfaction level of customer about the product briefing done by the sales executive

Chart No 4.5

SATISFACTION ABOUT SALESMANSHIP

92%

% of Respondents

70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 1 0.00% 0.00% YES NO

No of Respondent

8%

SATISFACTION

Analysis:

29

The statistic reveals that the product profile presented by the Salesman of Hero Honda is truly trustworthy with a majority of 92% of respondents showing satisfaction towards products briefing.

4.1.6 TEST RIDE PROCESS

Table No 4. 6 TEST RIDE YES SNO NO. OF RESPONDENTS 100 0 % OF RESPONDENT 100% 0%

TOTAL

100

100%

Source: survey data.

INTERPRETATION: -

30

This table showing no. of respondents took a test drive of Hero Honda bike

Chart No 4.6

Test Ride Process

31

Analysis: The statistic reveals that almost all the customers are offered for a test drive and were satisfied with the process. The test ride is offered within the limits of the showroom and a service employee is sent with the customer.

4.1.7 PERCEPTION TOWARDS SALES PROCESS Table No 4. 7

PERCEPTION VERY GOOD

NO. OF RESPONDENTS 33

% OF RESPONDENTS 33%

GOOD

56

56%

FAIR

11

11%

POOR

00

00%

TOTAL
Source: survey data.

100

100%

32

Interpretation: This table indicates perception level of Hero Honda customers about the over all sales process of Hero Honda bikes providing by the manufacturer through their dealers

Chart No 4.7

33

PERCEPTION TOWARDS SALES PROCESS

56%

50.00%

% of Respondents

40.00%

33%
30.00%

20.00%

11%
10.00%

0%
0.00% VERYGOOD GOOD FAIR POOR

PERCEPTION

Analysis:
The study reveals that the consumer perceives the dealers sales process as good and very good with the percentage being 56% and 33% respectively.

34

4.1.8 SATISFACTION ABOUT AFTER SALES SERVICE

Table No 4.8 Source: survey data

SATISFIED

NO. OF RESPONDENTS

% OF RESPONDENTS

YES

93

93%

NO

07

07%

TOTAL

100

100%

Interpretation: This table shows the satisfaction level of customers about the after sales services provided by Hero Honda

Chart No 4.8

35

SATISFACTION ABOUT AFTER SALES SERVICE

93%

90.00%

80.00%

% of Respondents

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

7%

0.00% YES NO

SATISFIED

Analysis: The statistic indicates that the greater part of respondent are satisfied with the sales service which falls

36

4.1.9 PERCEPTION OF RESPONDENTS REGARDING COMPLAINT RECOGNITION

Table No 4.9 PERCEPTION NO. OF RESPONDENTS % OF RESPONDENTS

VERYGOOD

36

36%

GOOD

53

53%

FAIR

11

11%

POOR

0%

TOTAL

100

100%

Source: survey data.

Interpretation: -

The table reveals that the complaints of consumer after sales were duly attended by the sales force. This shall be of competitive tool to be used to build up the brand image.

37

Chart No 4.9
Perception of Respondents regarding complaint recognition

Very Good Good Fair Poor

Analysis:
More than 50% of the respondents said that the complaint recognition of Hero Honda is good. And nobody claimed that their complaint recognition is poor. This indicates that Hero Honda is providing their customers good services.

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4.1.10 PERCEPTION TOWARDS MECHANICS OF HERO HONDA

Table No 4.10

EXPERT MECHANICS YES NO TOTAL

NO.OF RESPONDENTS 78 22 100

% OF RESPONDENTS 78% 22% 100%

Source: survey data

Interpretation:
This table shows that whether Hero Honda have their own well trained and expert mechanics those who can meet the needs and expectation of the consumer or not

39

Chart No 4.10

Expert Mechanics
90 80 70 No of Respondents 60 50 40 30 20 10 0 Yes Response No

Analysis: Majority of the consumers felt that Hero Honda having good and well trained mechanics to provide better service to the customers as per their expectation.

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4.1.11 PERCEPTIOIN TOWARDS THE ATTRIBUTES OF HERO HONDA

Table No 4.11 ATTRIBUTES NO OF RESPONDENTS % OF RESPONDENTS

STYLE MILEAGE PERFORMANCE COMFORT PRICE BRAND NAME TOTAL

13 32 24 11 4 16 100

13% 32% 24% 11% 4% 16% 100%

Source: survey data Interpretation: The above table showing that the attribute of Hero Honda which the customers ranked most. This indicates that which of the attribute the consumer likes most in a Hero Honda motor bike

Chart No 4.11 41

Perception towards Attributes

Analysis: Most of the consumers those who participated in the survey ranked mileage as most attractive attribute of Hero Honda. And the second most attribute which got ranked first is the performance of Hero Honda bike. The least attractive attribute is price.

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4.1.12 CONSUMER PERCEPTION TOWARDS PERFORMANCE OF HERO HONDA

EXCELLENT

27

27%

GOOD

56

56%

SATISFACTORY

17

17%

POOR TOTAL Source: survey data. INTERPRETATION: -

0 100

0% 100%

This table indicates consumers satisfaction towards the performance of the Hero Honda motor bikes

43

Chart No 4.12

Perception towards Performance

Excellent Good Satsfctry Poor

Analysis: As per the above table the respondents feel that Hero Hondas performance is good revealed by their personal experience of using the bike. This shows that Hero Honda has very good market potential through its performance

44

4.1.13 AVAILABILITY OF SPARE PARTS OF THE HERO HONDA Table No 4.13 AVAILABILITY NO OF RESPONDENTS % OF RESPONDENTS

EASILY AVAILABLE

100

100%

HARDLY AVAILABLE

0%

NOT AVAILABLE

0%

TOTAL

100

100%

Source: survey data

Interpretation: The above table showing the availability of the Hero Honda spares parts

Chart No 4.13

45

Availablity of Spare Parts

Esly avail Hdly avail Not avail

Analysis: The Hero Honda customers are satisfied about the availability of its spare parts. All the respondents said that the Hero Honda spares are easily available.

46

4.1.14 CONSUMERS PREFERENCE IN SERVICING THE BIKE

Table No 4.14 SERVICE PREFERENCE NO OF RESPONDENTS % OF RESPONDENTS

SERVICE CENTRE

47

47%

AUTHORISED DEALER

34

34%

LOCAL MECHANIC

19

19%

TOTAL

100

100%

Interpretation: This is about where would the consumer prefers when it comes to the servicing bike. Whether they choose service centre or authorized dealer. Other than this would they prefer local mechanics?

47

Chart No 4.14

Service preference

50 45 40 35 30 No of 25 Respondents 20 15 10 5 0 Ser cntr Auth dlr Preference Lcl mech

Analysis: Majority of the consumers prefers service centre for servicing their bike. And the second most preference is authorized dealers apart from this only a small no. of consumers prefers local mechanics.

4.1.15 FACTORS INFLUENCED IN PURCHASE DECISION

48

Table No 4. 15 FACTORS NO. OF RESPONDENTS % OF RESPONDENTS

POWER

13

13%

STYLE

17

17%

PRICE REDUCTION

26

26%

MORE COLOURS

9%

FREE ACCESSORIES

11

11%

FUEL EFFICIENCY

24 100%

24%

TOTAL Source: survey data.

100

Interpretation: This is about the factor which influenced the customer to take his decision to buy a Hero Honda bike. .

49

Chart No 4.15

Factors influenced in Purchase Decision

Power Style Prce rdtn Mre clrs Fre acsrs Fuel efncy

Analysis: From the study its revealed that the price cut from Hero Honda influenced customer most for buying the bike and the percentage being 26%. This is followed by an influence of fuel efficiency and style with 24% and 17% of the respondents

CHAPTER 5
50

FINDINGS, SUGGESTIONS AND CONCLUSION

51

5.1 FINDINGS The old prophecy that once a customer is a customer has become a myth in the present day competitive world. Brand image is no longer works a magic with the consumer. So to hold the customer to the brand and attract new consumers the company must produce products that are efficient and competent along with its marketing activities that help in sales of the product. After analyzing the response of the consumer interviewing through questionnaire and observation the following were found in the study. 1. Hero Honda motor cycles were the market leader in the Two Wheeler segment. But they are losing their grip in the market. Even the 48% Hero Honda customers said that if they get a second chance they would prefer Bajaj. 2. The Brand Name of Hero Honda is still there in the market and in the minds of the customer. 3. There are only a few women Hero Honda customers and they own Hero Honda Pleasure. 4. Now days the main Hero Honda customers are students between 18-25 years of age and they like the bike because of its mileage. 5. Advertisements of Hero Honda bikes are very effective. Introduction of Hrithik Roshan helps Hero Honda a lot. 6. Majority of the customers got the opportunity of test ride and they are satisfied with the product briefing by the Hero Honda sales executive.

52

7. The most demanded Hero Honda Brands are Splendor+ and Super Splendor. Major part of the users of this brand is employees next are students. 8. Most of the Hero Honda customers have satisfied with the after sale service and servicing of bike. 9. From analysis and interpretation it is found that Hero Honda is mainly chosen for its mileage performance and brand image. 10. Majority of the customers have satisfied with the performance of Hero Honda. 11. HERO HONDA is the only two wheeler company in India which has given these vast ranges of motorcycles to the market, obtained form general observation during the study 12. HERO HONDA has plans of letting some more new models in future such as CBZ Extreme .As per the information it was found that splendor is the worlds largest selling bike. 13. Majority of the customers were aware of HERO HONDA through T.V. & newspapers advertisement. Other than this there friends & Relatives also place an important role in influencing the customer 14. And in the case of servicing and repairing the bike most of them prefer Service Centers Majority of customers get their vehicle service a Authorized service units and authorized dealers and very few services on to local services centers.

53

15. The most important factor which influenced the customer to buy a Hero Honda bike is price reduction followed by fuel efficiency. 16. Customers are satisfied about HERO HONDA bike because of easy availability of spares parts of their bike. 17. From the survey its revealed that Bajaj motors is the foremost competitor of Hero Honda followed by TVS. 18. HERO HONDA bikes are said to have very good resale value in the market.

54

5.2 CONCLUSION
Hero Honda is one of leading two wheeler producer in the world and a major player in the Indian Market. They were the producer of largest selling motor cycle of the world that is Hero Honda Splendor it has its own importance still in the market. But from the past two or three years Hero Honda suffered a slight loss in its market share and Bajaj became a big competitor to Hero Honda. The introduction of Bajaj Pulsar is one of the biggest threat to Hero Honda. Hero Honda is one of the leading two wheeler producer in the globe. It holds an important place in the minds of consumer by providing efficient service and better products. Product efficiency and innovations are the method they live up today. Their engineering is comprehensive. Consumer perception towards Hero Honda motorcycles is very good. It has created a very good brand image for it self by providing low maintenance, fuel efficient, sleek looking models along with efficient after sales service. It has attracted every class of customers. In todays competitive business environment, it is only due to the positive perception of the consumer that the company is being able to compete in the market with its other competitors.

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5.3 RECOMMENDATONS AND SUGGESTIONS

1. Most of the customers are of the view that the price tag of HERO HONDA bikes as compared to other similar bikes is a bit higher. Hence the price of the bikes especially the power range bikes like CD DELUXE, CBZ XTREME, and KARIZMA could be reduced. 2. CD-Dawn, Splendor+ and Passion Plus, could be added with more power, mileage and given with more colours.

3. The customers should be provided with enough information regarding effective maintenance of the bike so that the consumers get the best from the bike. 4. HERO HONDA has to identify those dealers who are facing the problem with sales and take adequate measures to keep up the so far created brand image.

5. Hero Honda has to use more promotional techniques to improve the sales in future. It has to conduct more road shows/public display by which the consumer is given with much detailed information about the product and more public awareness is created. 6. Many existing customer have stated that some Hero Honda vehicle (CD-Dawn, Splendor) do not have a good road grip. Hence it is suggested that those vehicle must be re-engineered for better road grip.

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7. Many existing customers have stated that the splendor+ be provided with self starter and disc brakes. So the company should focus on those factors. 8. HERO HONDA has offered just one model (HERO HONDA PLEASURE) for women whereas its competitors are offering more then two so they should concentrate on that aspect. 9. The models ACHIEVER and AMBITION should be re-launched with more value added features. 10. Apart from KARIZMA and CBZ-XTREME all other models are light weight and hence are prone to accidents.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

TEXTBOOKS REFERRED Kotler Philip, Marketing Management, Pearson Education Inc. 11th Edition. Consumer Behaviour Building Marketing Strategy 9th Edition 2003, Tata McGraw Hill. Stanton William J, Etzel Michael J, Walker Bruce J, Fundamentals of Marketing, McGraw-Hill international, Singapore, 1998 MAGAZINES Business Today Business World Business standard Auto India Overdrive

NEWSPAPER REFERRED
Economics Times Business Times The Times of India Business Standard

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WEB SITE REFERRED

www.herohonda.com www.herogroup.com www.autoindia.com

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ANNEXURE

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ANNEXURE. 1
QUESTIONNAIRE

Dear customer, . I Joyal John final year MBA student of the Kristu Jayanti College of Management and Technology doing a project work on Consumer Perception towards HERO HONDA Motor Bikes in Bangalore City for my academic purpose. I request you to kindly fill this questionnaire. Thanking you, Sincerely yours, . 1. Name:2. Age: - 18-25 3. Sex 4. Occupation:Business Student Professional Others Employee 25-40 Male 40-55 Female >55

5. How did you come to know the name HERO HONDA? Friends Advertising Relatives Others

6. Are you satisfied with product briefing done by the sales executive? Yes No

7. Have you gone for test drive? Yes No

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8. What is your opinion about overall sales process? Very good Fair Good Poor

9. Are you satisfied with the after sales service provided by Dealer? Yes No

10. Do they have expert mechanics who can cater to the needs of the customers? Yes No

11. Rank the attributes of HERO HONDA bikes as per your preference, Rank 1-Most attractive, Rank 6-Least attractive Style Performance Price Mileage Comfort Br Brand Name

12. What is your opinion on the performance of HERO HONDA bikes? Excellent Satisfactory Good Poor

13. How is the availability of spare parts of the HERO HONDA? Easily available Hardly available Not available

14. When it comes to service the bike, where would you prefer? Service centre Authorized Dealer Local Mechanic

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15. Rank the factors which have influenced you purchase of HERO HONDA bike? 1- Most influenced, Rank 6- Least influenced Power Price reduction Free accessories Style More colors Fuel Efficiency

Rank

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