A

DISSERTATION ON
“ Consumer Perception towards HERO HONDA
Motor Bikes in Sambalpur City”

Project report submitted to G.M.College (Auto), Sambalpur

in partial fulfillment for the award of the degree in
MASTER OF BUSINESS ADMINSTRATION

PREPARED BY: - Archana Dash

ROLL NO: - PC10MBA022

GUIDE
Mr. Srinibash Dash
Asso0ciate Professor
.
 DECLARATION
I, do hereby declared that this project
entitled
“Consumer Perception towards HERO

HONDA Motor Bikes in Sambalpur City”

Submitted is in the partial fulfillment
Of the Requirement for the Degree of
Master of Business Administration
At
Gangadhar Meher College (AUTO), SAMBALPUR

Is my own work and is not submitted to any other

institute or published any where else before and it is
not award for any other degree, diploma, or any other
similar title or prize.
Place:Samabalpur Archana Dash
Date: (Roll No: - Pc10mba022 )
 ACKNOWLEDGEMENT

I would like to take this opportunity to place it on record that this project would

never take shape without their co-operator extended, implicitly and explicitly to

me by certain individuals though it is not possible to name all of them, but it

would be unpardonable on my part if I do not mention some of the very

important persons. I at the very onset express my gratitude to who has always

inspired me and shown his keen interest for the completion of my project, to

Mr.Srinibash Dash for giving me periodical and optimistic guidance to

complete my project work as part of our curriculum and it has been fortunate in

getting the generous help.

Name – Archana Dash

Roll No – pc10mba022
CERTIFICATE
This is to certify that Miss Archana Dash has done her

Dissertation on the topic “Consumer Perception towards

HERO HONDA Motor Bikes in Sambalpur City” I further

verify that her thesis is the record of the original work

conducted by her and that to the best of my knowledge no part

of the content has ever been submitted by anybody else. I am

forwarding her thesis to be examined for part fulfillment of MBA

for dept. of business administration, Sambalpur .

Mr Srinibasha Dash
Associate Professor
 CHAPTER 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 .Need of the study

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 li ke 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.
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

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.

1.5. 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.

c) This study covers only a limited Hero Honda sector. So this study will not be
applicable for those areas.
CHAPTER 2- PROFILE OF THE INDUSTRY AND COMPANY

2.1. INDUSTRY PROFILE

2.1.1. Historical Industry Development

India is the second largest manufacturer and producer of two-wheelers in the world. It stands
next only to Japan and China in terms of the number of two-wheelers produced and the
domestic sales respectively. This distinction was achieved due to variety of reasons like
restrictive policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public transportation system etc.The
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 1960, it set up a shop to manufacture them in
technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial
stages, the scooter segment was dominated by API; it was later overtaken by Bajaj Auto.
Although various government and private enterprises entered the fray for scooters, the only
new player that has lasted till 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
viz Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the
Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield
350cc bikes and Escorts 175cc bike. The two-wheeler market was opened to foreign
competition in the mid-80s. And the then market leaders - Escorts and Enfield - were caught
unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With
the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda -
then the only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS 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 90s 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 50s, 60s and 70s when the Government prohibited new
entries and strictly controlled capacity expansion. The industry saw a sudden growth in the
80s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn
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 the 90s, this trend was reversed with the introduction of scooterettes. In line
with this, the scooter segment has consistently lost its part of the market share in the two-
wheeler market.In 1990, the entire automobile industry saw a drastic fall in demand. This
resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a 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 prices, high input costs
and reduced purchasing power due to significant rise in general price level and credit crunch
in consumer financing. Factors like increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in company either reporting losses or a fall
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%, the rest is shared by Bajaj Tempo,
Greaves Ltd and Scooters India.

The total number of registered two-wheelers and three-wheelers on road in India, as on

March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has almost
doubled in 1996 from a base of 12.6mn in 1990.

2.1.2Evolution of Two-wheeler Industry in India

Two-wheeler segment is one of the most important components of the automobile sector that
has undergone significant changes due to shift in policy environment. The two-wheeler
industry has been in existence in the country since 1955. It consists of three segments viz.
scooters, motorcycles and mopeds. According to the figures published by SIAM, the share of
two-wheelers in automobile sector in terms of units sold was about 80 per cent during 2003-
¬04. This high figure itself is suggestive of the i mportance of the sector. In the initial years,
entry of firms, capacity expansion, choice of products including capacity mix and technology,
all critical areas of functioning of an industry, were effectively controlled by the State
machinery. The lapses in the system had invited fresh policy options that came into being in
late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices (MRTP) and
Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly and foreign
investment respectively. This controlling mechanism over the industry resulted in: (a) several
firms operating below minimum scale of efficiency; (b) under-utilization of capacity; and (c)
usage of outdated technology. Recognition of the damaging effects of licensing and fettering
policies led to initiation of reforms, which ultimately took a more prominent shape with the
introduction of the New Economic Policy (NEP) in 1985.
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime of
regulation and tight control to a more liberalized and competitive era. Two major results of
policy changes during these years in two-wheeler industry were that the, weaker players died
out giving way to the new entrants and superior products and a sizeable increase in number
of brands entered the market that compelled the firms to compete on the basis of product
attributes. Finally, the two-¬wheeler industry in t he country has been able to witness a
proliferation of brands with introduction of new technology as well as increase in number of
players. However, with various policy measures undertaken in order to increase the
competition, though the degree of concentration has been lessened over time, deregulation of
the industry has not really resulted in higher level of competition.
2.1.3. Growth Perspective
The composition of the two-wheeler industry has witnessed sea changes in the post-reform
period. In 1991, the shares of scooters were about 50 per cent of the total 2-wheeler demand
in the Indian market. Motorcycle and moped had been experiencing almost equal level of
shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased to
78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to the
level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's gaining
importance during this period is exhibited by the Figures 1, 2 and 3 depicting total sales,
share and annual growth during the period 1993-94 through 2003-04.

2.1.4. INDIAN TWO WHEELER INDUSTRY

The two-wheeler market has had a perceptible shift from a buyers market to a sellers market
with a variety of choices. Players are competing on various fronts such as pricing,
technology, product design, productivity, sales process, after sales service, marketing and
distribution. In the short term, market shares of individual manufacturers are sensitive to
capacity, product acceptance, pricing and competitive pressures from other manufacturers.
All the four segments, Motor Cycles, Scooters, Scooterettes and Mopeds have witnessed
capacity additions in the last one year and it will continue in the upcoming period as and
when the foreign companies opens a local subsidiary. Over this period as and when the
foreign companies’ opens a local subsidiary. Over this period, only the Motor Cycle segment
is expected witness higher demand vise-versa supply, while the Scooters, Scooterettes and
Mopeds supply will outstrip demand.As incomes grew and people felt the need to own a
private means of transport, sale of two-wheelers raised. Penetration of the two-wheelers is
expected to increase to approximately to more than 25%by 2005. The Motor Cycle segment
will continue to lead the demand for two-wheelers in the coming years. Motor Cycle sales are
expected to increase by 20% as compared to 1% growth in the Scooter market and 3% by
Scooterttes and Moped sales respectively for the next two-years. The Indian two and three
wheeler industry produced and sold about 4.5million units in 2003-2004. Like any other
Indian Industry, the policy environment guided and controlled this segment of the industry as
well. Licensing norms ruled the day till mid 80’s. Access to foreign technology inputs and
foreign investment were strictly government controlled.

Since mid 80’s, the Indian automobile industry was administered select doses of
liberalization. Foreign collaborations with equity up to 26%, fresh licenses and conditional
CKD imports, etc. were allowed. This liberalization coupled with the Indian market potential
attracted world majors like Honda, Yamaha, Suzuki and Piaggio setup their Joint Ventures
during mid 80’s in India. From 1991 onwards, the industry was de-licensed. Automatic
approvals for foreign equity up to 51% and equity participation in excess of 51% with
specific approvals entered the rulebook. Honda converted one of its Joint Ventures to a 51%
subsidiary. On regulation front, Central Motor Vehicles Regulations mandates the safety,
emissions and other norms. Vehicular emissions standards came into effect first in 1991 and
were tightened further in 1996. For the two and three wheeler these are among the tightest in
the world. Further tightening has taken effect from April 2000.The four-stroke Motor Cycle
has added new dimensions to the two-wheeler segment. The major players in the Motor
Cycle market are Bajaj Auto Ltd. with its Pulsar DTS-i, Hero Honda Co. with its Hero Honda
Karizma. Competition is intense in all segments of the two-wheeler industry with fuel
efficiency and price being crucial considerations for success. In the recent past, a
manufacturer’s ability at product innovation and opening new market niches have also been
crucial for the growth of the industry. Bajaj Auto Ltd. entered the Motor Cycle segment in the
mid 80’s. Since then it has won market shares increasing indigenization and by opening new
market niches for their products. Bajaj has emphasized its higher safety and superior quality.
Fuel efficiency allowed Hero Honda to dominate the 100cc Motor Cycle segment for most of
the last eight years. Bajaj Auto Ltd. has gained considerable market share in this segment
since it also launched a four-stroke Motor Cycle two years ago. The 100-cc segment is further
power (dominated by Bajaj Pulsar DTS-i), fuel economy and sub-segments. The semi-urban
and rural markets will increase in importance in the future and all manufacturers’ plan to
launch heavier bikes with stronger suspensions.

The relatively affordable and stable prices of Bajaj Motor Cycles backed by flexible loan
options have caused other Motor Cycles to continuously lose market share to them in the
previous few years.

2.1.5. Industry Structure

The Indian two-wheelers Industry can be broadly classified as scooters, motorcycles and
mopeds. The domestic two wheeler sales of 3.4mn in FY99 are constituted by these segments
as shown below.

Table. 3.1

Table showing the Industry Structure

Year Scooter Motorcycle Moped Total Growth %

FY92 769,955 428,118 408,022 1,606,095 -
FY93 709,725 379,060 414,567 1,503,352 (6.40)
FY94 840,173 472,582 457,471 1,770,226 17.75
FY95 1,033,524 652,012 523,700 2,209,236 24.80
FY96 1,223,425 809,527 627,079 2,660,031 20.41
FY97 1,301,051 978,682 683,756 2,963,489 11.41
FY98 1,262,699 1,131,314 648,842 3,042,855 2.68
FY99 1,325,868 1,395,657 681,902 3,403,427 11.85
FY2000 1,253,969 1,796,734 726,075 3,776,778 10.97

Source: SIAM

In the last six years, the domestic two-wheeler industry has seen structural changes. This can
be seen from the change in composition of two-wheeler sales, where the motorcycles have
consistently gained market share from the scooter and moped segments to corner a share of
41% of total two-wheeler sales. This trend is expected to continue in the next two years till
the four-stroke scooters make their presence felt in the segment. The table below gives an
idea about the strides made by the motorcycle segment in the last six years.

Table 3.2

Table showing Motor Cycle Segment from 1993 to 2000

(In %) Scooter Motorcycle Moped

FY93 47.2 25.2 27.6
FY94 47.5 26.7 25.8
FY95 46.8 29.5 23.7
FY96 46.0 30.4 23.6
FY97 43.9 33.0 23.1
FY98 41.5 37.2 21.3
FY99 39.0 41.0 20.0
FY2000 33.2 47.6 19.2
Source:
SIAM
The scooter market is dominated by 150cc vehicles from Bajaj Auto and LML, with the rest
being served by 100cc variometric scooters from Kinetic Honda. For scooters, northern India
is the major market contributing nearly 46% of the total scooter sales. Western and southern
India takes up second and third position with 27.5% and 15.7% respectively. For our
calculations we consider TVS Scooty sales as part of scooter sales as given by Society of
Indian Automobile Manufacturers (SIAM). The Indian motorcycle industry can be broadly
categorized in to Indian motorcycles and Indo-Japanese motorcycles. The Indo-Japanese
motorcycle segment is dominated by Hero group, Bajaj and Escorts in collaboration with
Japanese vehicle manufacturers Honda, Kawasaki and Yamaha respectively. The Indian
motorcycles segment is dominated by Bajaj (M80), Escorts and Royal Enfield. In
motorcycles sales, western region leads with a market share of 40% of the total motorcycle
sales. South and north regions come second and third with a market share of 27.5% and
17.4% of total motorcycle sales respectively. For mopeds southern and western regions of
India are the major contributors with nearly 52% and 28% of the over all moped sales.
Looking at the population of moped sales in south it appears that the sale of mopeds has
reached stagnation. Western and southern region lead in three-wheeler sales with a
contribution of 42% and 35.8% of total three-wheeler sales respectively.

In terms of two-wheeler vehicle population, Maharashtra stands first with a population of

st
2.96mn vehicles and Gujarat stands second with 2.64mn vehicles as on March 31 1997.
Tamil Nadu is the third largest state with 2.45mn two-wheeler population. In terms of three-
wheeler vehicle population Maharashtra stands first with a population of 0.39mn and Gujarat
st
in the second place with 0.22mn as on March 31 1997.

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 NCAER in its latest
report on market demographics has clearly indicated that post-liberalization (ie FY92 to
FY96) Indian households have graduated to higher income groups as can be seen in
the table below. Table 3.3
 Table showing Distribution of Households In %age

Income
Annual income FY86 FY96
group
(Rs atFY96
Urban Rural Total Urban Rural Total
prices)
<=25,000 Low 42.1 73.6 65.2 27.9 57.2 48.9
25,001 - 50,000 Low Middle 35.8 21.4 25.2 34.9 29.0 30.7
50,001 - 77,000 Middle 15.2 4.0 6.9 20.3 8.6 11.9
Upper
77,001 - 106,000 3.9 0.7 1.5 9.6 3.1 5.0
Middle
> 106,000 High 3.1 0.3 1.1 7.3 2.0 3.5

Table 3.4

Table showing Growth in Income Groups (%) In Pre and Post Reform Period

Income group FY86 to FY89 FY93 to FY96

Urban Rural Total Urban Rural Total
Low 0.93 -0.20 -0.01 -7.03 -3.03 -3.72
Low Middle 3.34 4.91 4.33 5.46 10.20 8.59
Middle 8.53 17.82 12.72 11.96 3.11 7.01
Upper Middle 18.52 16.39 17.83 11.90 12.25 12.06
High 9.57 13.90 10.65 18.22 15.68 17.14
Total 4.14 2.04 2.61 3.50 1.44 2.01

Source: NCAER

As seen from the above tables, 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
numbers of households in the middle, upper middle and high income groups, which form the
consumer base for two wheelers, have increased. Their share of the total number of
households has increased from 10.6% in FY88 to 20.5% in FY96. The rising income profile
has, however, been more pronounced in the urban areas as average annual growth in industry
has surpassed that of agriculture in the period FY93 to FY96.

2.2 COMPANY PROFILE

Hero Honda Motors Limited was established in 1984, as a joint venture between India's Hero
Group (world's largest bicycle manufacturers) and Japan's Honda Motor Company. In 1985
production began with the launch of its first motorcycle, the CD100, which gave 80 km to the
liter. In 1987 the engine plant was started and in 1989 the Company produced its 3,00,000th
motorcycle. In 2001 Hero Honda manufactured its 50,00,000th motorbike. Hero Honda has a
reputation of being the most fuel-efficient and the world's single largest two wheeler
Company. Shri Brijmohan Lall Munjal is the chairman and managing director of this
Company. Both the manufacturing plants are located in Haryana, one at Dharuhera (district
Rewari) and the other in Gurgaon. The Gurgaon plant is situated on the Delhi-Jaipur
Highway, in Sector 33. The Dharuhera plant, set up in 1987 in the Dharuhera Industrial Area,
is spread over an area of 140 acres. The Dharuhera plant manufactures CD100, CD100ss and
CD Dawn motorcycles while the Gurgaon plant manufactures the other models. Splendor is
manufactured at both the plants. With both these plants running at full capacity, Hero Honda
is looking for a suitable location to set up their third manufacturing unit. When Hero Cycles
and Honda Motor Company of Japan inked their joint venture in India in April 1984, few
could have imagined that the two would go on to create history and become the subject of a
case study at business schools, internationally. That's the Hero Honda saga for you. In a little
over two decades, the world's largest manufacturer of bicycles and the global leader in
motorcycles have created not only the world's single largest motorcycle company but also
the most endearing and successful joint venture for Honda Motor Company worldwide. The
company has sold over 15 million motorcycles and has consistently grown at double digits
since its inception and today, every second motorcycle sold in the country is a Hero Honda. In
two decades, Hero Honda has built two world-class manufacturing facilities at Dharuhera and
Gurgaon in Haryana that now churn out over 3 million bikes per year.In this period, Hero
Honda has set up over 2400 customer touch points, comprising a mix of dealers, service
centers and stockiest across rural and urban India. Today, Hero Honda is an amalgam of
winning networks and relationships with internal and external stakeholders, including
Investors, Dealers, Vendors and Employees. These relationships have helped the company
hold on to the mantle of World No.1 for years in succession. What makes Hero Honda well,
Hero Honda, is a synergy. The two partners, leaders in their respective domains, have been
able to consistently draw on each other's strengths. The Hero Group's deep domain knowledge
of the Indian market and its supplier network has meshed with Honda's mastery over four-
stroke engine technology to create modern and fuel-efficient machines at affordable prices for
India 's 250-300 million strong middle class.

Progressively through the 1980s, the 1990s and now in the 2000s, Hero Honda has relied on 3
R's-- Reach, Research and Reliability as its basic building blocks. Using feedback from the
market, a fully-equipped R&D center has consistently created best practices in designing,
testing and harmonization, besides placing strong emphasis on road safety and ride quality.
This emphasis has helped Hero Honda build products that are ahead of their time. In the
1980s, for example, Hero Honda became the first company in India to prove that it was
possible to drive a vehicle without polluting the roads. The company introduced new
generation motorcycles that set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaigncaptured the imagination of commuters across.

2.2.1. The Legend of Hero Honda:-

What started out as a Joint Venture between Hero Group, the world’s largest bicycle
manufacturers and the Honda Motor Company of Japan, has today become the World’s single
largest two wheeler Company. Coming into existence on January 19,1984. Hero Honda
Motors Limited gave India nothing less than a revolution on two-wheels made even more
famous by the ‘fill it – shut it – forget it’ campa ign. Driven by the trust of over 5 million
customers, the HERO HONDA product range today commands a market share of 48%
making it a giant in the industry. Add to that technological excellence, an expansive dealer
network, and reliable after sales service, and you have one of the most customer-friendly
companies. This is proved by the company’s sales over the years:

1985-86 43,000 units

1989-90 96,200 units
1998-99 5,30,600 units
1999-00 7, 61,210 units
2000-01 10,29,555 units
2001-02 14,25,195 units
2002-03 16,77,537 units
2003-04 1.9 million units

2.2.2.Key Policies of Hero Honda

Environment Policy:

· Integrate environmental attributes and cleaner production in all business processes

and practices with specific consideration to substitution of hazardous chemicals,
where viable and strengthen the greening of supply chain.
· Continue product innovations to improve environmental compatibility.
· Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
· Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals

Quality Policy:

· Innovation in products processes and services.

· Continuous improvement in total quality management systems.
· Teamwork and responsibility

Safety Policy:

Integrating safety and health matters in all activities.

· Ensuring compliance with all applicable legislative requirements.

· Empowering employees to ensure safety in their respective work places.
· Promoting safety and health awareness amongst employees, suppliers and contractors.
· Continuous improvements in safety performance through precautions besides
participation and training of employees.
Products:
Pleasure - Scooter with 102 cc air-cooled four-stroke engine.

Karizma - Motorbike with 223 cc four-stroke air-cooled engine.

Super Splendor - Motorcycle with 125 cc four-stroke air cooled engine

Splendor + - Motorbike with 97 cc four stroke air cooled engine.

Glamour - Motorbike with 125 cc (9 bhp) "quantum core" engine

Passion + - Motorbike with 97 cc four stroke air-cooled engine.

CD Deluxe - Motorbike with 97 cc four-stroke air cooled engine.

CD 100 SS - Motorbike with 97 cc four-stroke air-cooled engine.

CD Dawn - Motorcycle with 97 cc four-stroke air-cooled engine.

Achiever - Motorcycle with 149 cc four-stroke air-cooled engine.

CBZ Xtreme – Motorcycle with 150 cc four-stroke air-cooled engine.

 CHAPTER-3 THEORETICAL BACKGROUND OF STUDY
3. THEORETICAL BACKGROUND OF STUDY

3.1. M.arket

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.

3.1.2. 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.

3.1.3. Marketing Management

Marketing management represents an important functional area of business management

efforts for the flow of goods and services from the producer to the consumers. It looks after
the marketing system of the enterprise. It has to plan and develop the product on the basis of
known customer demand.Marketing management may be defined as, ‘a process of
management of marketing programs for accomplishing organizational goals and
objectives’.Marketing management has to build up appropriate marketing plan or marketing
mix to fulfill the set goals of the business. It has to formulate sound marketing policies and
programs. It looks after their implementation and control. It has to implement marketing
strategies, programs and campaigns. It must evaluate the effectiveness of each part of
marketing mix and introduce necessary modifications to remove discrepancies in the actual
execution of plans, policies, strategies, procedures and programs.

3.1.4. Marketing Mix

Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in
the target market.
There are four elements or variables that make a marketing mix, they are:
1. Decisions on product or service.
2. Decisions on promotion
3. Decisions on price
4. Decisions on distribution.
The four ingredients are closely interrelated. Under the systems approach the decision in one
area affects action in the other. Marketing mix decisions constitute a large part of marketing
management.
According to Philip Kotler the term marketing mix is, ‘the set of controllable variables that
the firm can use to influence the buyers response’. In the simplest manner, the basic
marketing mix is the blending of four inputs or sub mixes, which form the core of the
marketing system.

Product mix decision refers to decisions on product variety, quality, design, features, brand
image, packaging, sizes, services, warranties and returns.
Price mix decision refers to decisions on the product list price, discounts, allowances, and
payment period and credit terms available.
Place mix decision refers to decisions on the channels, coverage, assortments, locations,
inventory and transport of the market offering.
Promotion mix decisions refer to decisions on the products advertising, sales promotion, sales
force, public relations and direct marketing.Together they form the four P’s of marketing.
3.1..5. Marketing Planning
A marketing plan lies down in writing the marketing objectives, programs and policies to be
adopted to achieve the set marketing objectives. Even before an integrated marketing plan is
prepared the company shall prepare functional plan for each component of marketing mix. To
have a sound marketing plan, every operation is to be examined and the problems are to be
identified. The overall marketing plan should be linked to the distribution channel of the
company to have effective marketing operations.
The marketing planning covers the preparation of functional plans, integration of this plan
and the preparation of master marketing plan to serve the objective of the organization.
Marketing planning is bound to get a better hold of environmental factor.

3.1.6. 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 4p’s 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.

3.2.Consumer
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.
3.3 .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.
1.2.9 Attitude
Social psychologist defined attitude as an emotionalized predisposition to respond positively
or negatively to an object. Predisposition can be thought of as categories of meaning stored in
the memory of a person and are based on previous experience. Predisposing the person to
have in an specific manner towards a certain objects in the environment.

1.2.9 Brand
A brand is a name, term, symbol, design or a combination of them which is intended to
identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors.

1.2.10. Consumer Behavior

The term consumer behavior can be defined, as, ‘the behavior that the consumer display in
searching for, purchasing, using and evaluating products, services and ideas, which they
expect, will satisfy their needs’. The study of consumer behavior enables marketers to
understand and predict consumer behavior in the market place; it also promotes
understanding of the role that consumption plays in the lives of individuals.
Consumer behavior refers to all psychological social and physical behavior of potential
consumers as they become aware of, evaluate, purchase and consume and tell others about
products and services. It is the pattern of response of buyers to marketing offer of a firm. It
refers to the process as how consumers make their purchase decisions. It is concerned with
what, why, how much, when and from whom buyers make their purchases of goods and
services.

Model of consumer behavior

 The starting point of understanding consumer behavior is the stimulus-response model.
Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s
characteristics and decision process lead to certain purchase decisions. The marketer’s task is
to understand what happens in the buyer’s consciousness between the arrival of outside
stimuli and the buyers purchase decisions.

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 person’s 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 person’s
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 person’s 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 person’s pattern of living in the world expressed in activities,
interest’s 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.

o 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
o When people act they learn. Learning involves changes in an individual’s 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 people’s attitudes.
CHAPTER -4 LITERATURE REVIEW
4.1 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.

4.2. 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.
4.3.Purpose o 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. That’s 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
4.3. Literature Review On Hero Honda
V S.Ramswamy, S.Namakumari Observed in their book given muchimportance to consumers
and observed that “concern for the consumer is the essence of the marketing concept. As such
when a firm practices the marketing concept, Cutomer's Opinions 3 it automatically takes full
care of the interest of the consumer and there is no need or scope for the consumers
to get organized in their defense. In fact when a firm practices the marketing concept, the
attempts if any, by interest groups to fight the firm and its products will fizzle out
quickly, since consumers at large would reject any accusation against the firm and its
products. Only because several firms functioned against the tenets of the marketing
concept, consumerism gained ground. That is why Drucker saidthat ‘ Consumerism is the
shame of marketing’ if marketing is practiced as per the marketing concept, the very motive
for consumerism will disappear. A firm practicing the marketing concept would not only be
sensitive to consumer attitudes, but would also anticipate these attitudes and adjust its
marketing accordingly; and it would proceed on the assumption that what is good for the
consumer is good for the firm. Such an approach would evidently remove the very raison
d’être of consumerism. Jha sing; in his book Marketing Management in Indian Perspective
pointed out the imbalance in the marketing practices and thought today, Fallacy is found true
that in the Indian conditions or generally in the developing nations, the marketing practices
are meant only for a few consumer goods. This narrowness in the concept deprives the
consumers of that exercise of choice, which compels the producer to attempt to
strive for efficiency and quality. Not only this, it also deprives the producers and marketers to
develop their faculties. The retarded developments of the marketingstrategies invite
imbalance in the production function and consequently, they face the stages of under-
Production or overproduction. Further, we also find contraction in the field of competition,
which closes doors for the qualitative transformation. No doubt, the Indian producers face the
problem of scarcity of resources. And further fail to develop the suitable marketing practices,
which in turn deprive the producers of the profitable prices and the consumers, the quality
and economy. In a good number of cases, the developing economies are agriculture oriented.
The poor developments in the field of marketing also affect their farm sector. Generally, the
commercialization of the farm products is delayed which restricts the flow of capital in this
sector Vis-a-Vis limits avenues for the scientific and mechanized cultivation.
CHAPTER 5-RESEARCH METHODOLOGY
5.1 RESEARCH 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 Sambalpur 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
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
6. 1 ANALYSIS OF DATA COLLECTED

Consumer Perception towards HERO HONDA Motor Bikes in Sambalpur

City

Statement of Problem

Stepping down of Hero Honda’s 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 consumer’s 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 li ke 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

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 Sambalpur 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.

Analysis of the Data Collected

6.1.1 Gender of the Respondents

Table No 1

Row Labels Count of Q.1 % of respondents

MALE 48 96
FEMALE 2 4
Grand Total 50 100

Interpretation:

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

Above 96% of respondents of the survey were male customers and there were only a
few female respond

6.1.2 Age of the Respondent

Table No 2

Row Labels NO OF % OF RESPONDENTS

RESPONDENT
18-25 5 10
25-40 18 36
40-55 21 42
AB0VE 55 6 12
Grand Total 50 100

Source: survey data

Interpretation:

The above table showing the age categories of the Hero Honda customers who participated in
the survey
 Chart-2

Analysis:

Above 42% of the participants of the survey were between40-55 of age and second
most participants were between25-40. There were only 5 participants responded above 18-
25age group

6.1.3 Occupation of the Respondents

Table No 3

Row Labels No % of respondents

respondents
BUSINESS 35 70
PROFESSIONAL 0 0
EMPLOYEE 8 16
STUDENT 4 8
OTHER 3 6
Grand Total 50 100
Source: survey data

Interpretation:

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

Chart No .3

Analysis:

The majority of the Hero Honda customers participated in the survey were businessmen.
Second are employees who are Hero Honda owners. And the Professionals and
Student are least user..

6.1.4 SOURCES OF AWARENESS OF HERO HONDA

Table No. 4

Row Labels Count of Q.5 % OF

RESPONDENTS
FRIENDS 5 10
ADVERTISING 42 84
RELATIVES 3 6
OTHERS 0 0
Grand Total 50 100
Source: survey data

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

Chart No 4

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 Hon
6.1.5 SATISFACTION ABOUT PRODUCT BRIEFING DONE BY SALES EXECUTIVE
Table No 5

Row Labels NO OF % 0F RESPONDENTS

RESPONDENTS
YES 46 92
NO 4 8
Grand Total 50 100

Source: survey data

INTERPRETATION: -

This table showing the satisfaction level of customer about the product briefing done
by the sales executive
Chart No 4.5

Analysis:

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.
6.1.6 PERCEPTION TOWARDS SALES PROCESS

Table No 6

Row Labels NO OF RESPONDENT % OF RESPONDENTS

VERY GOOD 45 90
GOOD 5 10
FAIR 0 0
POOR 0 0
Grand Total 50 100

Source: survey data

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 6
Analysis:

The study reveals that the consumer perceives the dealer’s sales process very good with
the percentage being 90%

6.1.7. FACTORS INFLUENCED IN PURCHASE DECISION

Table No 7

Row Labels NO OF RESPONDENTS % OF RESPONDENTS

STYLE 7 14
MILEAGE 15 30
PERFORMANC 10 20
E
COMFORT 4 8
PRICE 6 12
BRAND NAME 8 16
Grand Total 50 100

Source: survey data.

Interpretation: -
This is about the factor which influenced the customer to take his decision to buy
a Hero Honda bike.
 Chart-7

Analysis:

From the study its revealed that the mileage of Hero Honda influenced customer most
for buying the bike and the percentage being 30%.

6.1.8. CONSUMERS OPINION ON PERFORMANCE OF HERO HONDA

BIKE

Table No 8

Row Labels NO OF % OF
RESPONDENTS RESPONDENTS
EXCELLENT 6 12
GOOD 19 38
SATISFACTORY 25 50
POOR 0 0
Grand Total 50 100
Source: survey data
Interpretation:

This table showing consumers preference towards Hero Honda brands

Chart-8

Analysis:

According to most of the counsumer the performance of Hero Honda is satisfactory

6.1.9. AVAILABILITY OF SPARE PARTS OF HERO HONDA

Table No 9
Row Labels NO OF % 0F RESPONDENTS
RESPONDENTS
EASILY
AVAILABLE 48 96
HARDLY
AVAILABLE 2 4

NOT
AVAILABLE 0 0
Grand Total
50 100

Source: survey data

Interpretation:
 This table indicates availability of spare parts of Hero Honda.

Chart No 9

Analysis:

According to the consumers spare parts of hero Honda easily available.96% 0f

customer Support this.

6.1.1O. CONSUMERS PREFERENCE FOR HERO HONDA BRANDS

Table No 10

Row Labels NO OF % OF
RESPONDENTS RESPONDENTS
SPLENDOR PLUS 13 26
PASSION PLUS 8 16
CD- DAWN 3 6
CBZ 3 6
AMBITION 135 1 2
KARIZMA 2 4
SUP. SPLENDOR 7 14
GLAMOUR 2 4
PLEASURE 11 22
Grand Total 50 100
Source: survey data

Interpretation:

This table indicates that which brand consumer prefer most other than Hero Honda.

Chart No 10

Analysis:

The consumers prefer SPLENDOR PLUS among all the models 0f Hero Honda

6.1.11. CONSUMERS PREFERENCE FOR ALTERNATIVE BRAND OF TWO

WHEELER

Table No 11
 Row Labels NO OF RESPONDENTS % of respondents
TVS 6 12
BAJAJ 20 40
YAMAHA 7 14
HONDA 12 24
SUZUKI 5 10
OTHERS 0 0
Grand Total 50 100

Interpretation:

This table indicates that which brand consumer prefer most other than Hero Honda.

Chart_11

Analysis: The consumers prefer Bajaj most other than Hero Honda in the two wheeler
industry. The 20% of the Hero Honda customers prefer Bajaj other than Hero Honda that’s
why Bajaj becoming a big threat to Hero Honda. And also there is significant increase in the
preference of TVS, Yamaha, Honda and even in Suzuki as well.
7.1 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.

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 world’s
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 center

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 it’s 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.

7.2 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
verygood 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 today’s 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.

7.3 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.
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.
 BIBLIOGRAPHY

TEXTBOOKS REFERRED
Kotler Philip, Marketing Management, Pearson Education Inc. 11th Edition.
th
Consumer Behaviour – Building Marketing Strategy 9 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

WEB SITE REFERRED

www.herohonda.com

www.herogroup.com

www.autoindia.com
 QUESTIONNAIRE

Dear customer,

I Archana Dash final year MBA student of the G.M.(Auto)College Sambalpur doing a
project work on “ Consumer Perception towards HERO HONDA Motor Bikes in
Sambalpur City” for my academic purpose. I request you to kindly fill this questionnaire.

Thanking you,
Sincerely yours,
.
1. Name:-

2.Age: - 18-25 25-40 40-55 >55

3.Sex Male Female

4.Occupation:-
Business Professional Employee

Student Others

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. What is your opinion about overall sales process?

Very good Good

Fair Poor

8. Rank the attributes of HERO HONDA bikes as per your preference, Rank 1-Most
attractive, Rank 6-Least attractive

Style Mileage

Performance Comfort
 Price Br Brand Name

9. What is your opinion on the performance of HERO HONDA bikes?

Excellent Good

Satisfactory Poor

10. How is the availability of spare parts of the HERO HONDA?

Easily available

Hardly available Not available

11. Rank the factors which have influenced you purchase of HERO HONDA bike? Rank 1-
Most influenced, Rank 6- Least influenced

Power Style

Price reduction More colors

Free accessories Fuel Efficiency

12. Which model did you buy?

Splendor+ Passion+ CD-Dawn C.B.Z

Ambition 135 Karizma Super Splendor

C B Z Extreme Glamour Pleasure

13. Rank the Companies as per your preference, Rank1-Most, Rank-Least

T.V.S Bajaj Yamaha

Honda Suzuki Others