SUMMER TRAINING PROJECT REPORT

ON
“A STUDY OF COMPARATIVE
MARKET STRATEGY OF BAJAJ &
HERO”

FOR THE PARTIAL FULLFILMENT OF THE REQUIREMENT OF THE

AWARD OF DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

Mr. Satish Srivastava Manish Kumar
(HOD ) BBA 6th Sem.
Roll No.181090535045

Session 2018-2021

SARDAR BHAGAT SINGH COLLEGE OF TECHNOLOGY AND

MANAGEMENT, LUCKNOW
 DECLARATION

I Manish Kumar Roll No. 181090535045 hereby declare that the project work entitled “A

STUDY OF COMPARATIVE MARKET STRATEGY OF BAJAJ & HERO” submitted to

the SARDAR BHAGAT SINGH COLLEGE OF TECHNOLOGY AND MANAGEMENT,

LUCKNOW is a record of an original work done by me under the guidance of Mr. Satish

Srivastava, H.O.D. and this project work has not performed the basis for the award of any

degree or diploma and similar project if any.

Manish Kumar
BBA 6th Sem.
Roll No.181090535045
 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this research

which is a part of my BBA program.

I would like to sincerely thank Mr. Satish Srivastava, for giving me the wonderful opportunity

to work under his able guidance and support throughout my research.

I also thank persons working at Eveready India Ltd. office for giving me their valuable time and

vital information which forms a part of this report.

I would also like to thank my colleagues for rendering their help to me in this research.

Last but not the least, I thank my parents for their prayers, help and advice which helped me a lot

to complete this project report.

Manish Kumar
BBA 6th Sem.
Roll No.181090535045
 CONTENT

INTRODUCTION

COMPANY OVERVIEW

RESEARCH METHODOLOGY

DATA ANALYSIS

FINDINGS

CONCLUSION

SUGGESTION & RECOMMENDATIONS

BIBLIOGRAPHY
INTRODUCTION

1
 INTRODUCTION
PROFILE OF THE STUDY
In this era of cut throat competition, no company can survive in the market place without
knowing its product’s strengths and weaknesses. It has to fortify (Strengthen) itself against
threats from the environment and exploit its strengths for increasing profits. In order to do so, the
company has to conduct regular surveys to know the customer’s opinions, needs, and
preferences. This helps the company to manufacture the product according to customer’s
expectations. It has now become more important for the customer confidence and higher
positioning of buyer perception. Thus, Surveys becomes genuine key to success.
The Bike segment is Dominated by 4 major players viz. HERO HONDA , BAJAJ, TVS,
ROYAL ENFIELD .Besides these, there are players like – HONDA(Alone) , SUZUKI.
The expanding Indian market, the growing size of the middle class and the rise in
aspirations of the youth along with opening up of the Indian economy have collectively
influenced the steady growth of the two wheeler market in India. With leading foreign brands in
collaborations with Indian manufacturers entering the Indian market, the customer could not
have asked for more. In fact, the Indian bike market has grown immensely and the preference for
variety looks, design has brought in a number of models in the market. In the last 3 to 4 years,
the craze for motorcycle over the scooters has picked up and one can find today even girls crazy
for a motorbike not only in the Metros but in small towns and cities also.

Trying to catch up with these, manufacturers are busy working out on customer profiles.
With the increase in competition one can find a think of discounts including: cash rebates and
free accessories to push sales of the commuter bikes. Certain changes are also visible as far as
customer preferences are concerned. The basic 100cc bike market is suddenly experiencing a
slow down in the growth. This Commuter bike was a favorite till the other day, commanding up
to 90% of the total bike sales. The shift towards 150 cc bikes is suddenly discernable and the
segment is expected to grow in near future. Manufacturers are now rushing in to introduce bikes
in this segment. Bajaj has launched Pulsar-Dtsi 150cc higher on the power ladder, Honda has
come up with Unicorn and TVS has recently launched Apache.

2
 The customer is the basic ingredient of marketing. The development of marketing
strategy is based on understanding of consumer and there behavior. The present study attempts to
understand the behavior of consumer for their choice in purchasing two-wheeler with special
reference to bikes like Honda(Unicorn), TVS (Apache), and Bajaj(Pulsar 150cc). But consumer
behavior and the derived consumer satisfaction cannot be intact. Now days the two wheeler
industry is growing at its fast speed. The competition is very hard and so many choices are
available to customers. Here I have tried to find out the level of customer satisfaction regarding
(Unicorn, Apache, and Pulsar) two wheelers and also what modification they want in their
products. So the study is all about the customer’s preference and their satisfaction with regard to
bikes coming under 150cc segment.

3
4
Bajaj Auto limited is one of the largest two wheeler manufacturing company in India
apart from producing two wheelers they also manufacture three wheelers. The company
had started way back in 1945. Initially it used to import the two wheelers from outside,
but from 1959 it started manufacturing of two wheelers in the country. By the year 1970
Bajaj Auto had rolled out their 100,000th vehicle. Bajaj scooters and motor cycles have
become an integral part of the Indian milieu and over the years have come to represent
the aspirations of modern India. Bajaj Auto also has a technical tie up with Kawasaki
heavy industries of Japan to produce the latest motorcycles in India which are of world
class quality The Bajaj Kawasaki eliminator has emerged straight out of the drawing
board of Kawasaki heavy industries. The core brand values of Bajaj Auto limited
includes Learning, Innovation, Perfection, Speed and Transparency.

Bajaj Auto has three manufacturing units in the country at Akurdi, Waluj and Chakan in
Maharashtra, western India, which produced 2,314,787 vehicles in 2005-06. The sales
are backed by a network of after sales service and maintenance work shops all over the
country.

Bajaj Auto has products which cater to every segment of the Indian two wheeler market
Bajaj CT 100 Dlx offers a great value for money at the entry level. Similarly Bajaj
Discover 125 offers the consumer a great performance without making a big hole in the
pocket.

5
PROFILE:
Founder Jamnalal Bajaj

Year of Establishment 1926

Industry Automotive - Two & Three Wheelers

Business Group The Bajaj Group

Listings & its codes BSE – Code: 500490; NSE - Code: BAJAJAUTO

Presence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh, Columbia,
Guatemala, Peru, Egypt, Iran and Indonesia.

Joint Venture Kawasaki Heavy Industries of Japan

Registered & Head Office Akurdi

Pune - 411035
India
Tel.: +(91)-(20)-27472851
Fax: +(91)-(20)-27473398

Works Akurdi, Pune 411035

Bajaj Nagar, Waluj Aurangabad 431136
Chakan Industrial Area, Chakan, Pune 411501

E-mail rahulbajaj@bajajauto.co.in

Website www.bajajauto.com

6
 BAJAJ AUTOS LTD.
Bajaj Auto Limited

Type Public

Founded 1945

Headquarters Pune, India

Key people Rahul Bajaj (Chairman)

Rs. 1,01,063 billion (2006) or USD 1.87

Revenue
billion

Net income Rs. 17,016 billion

Employees ???

Website www.bajajauto.com

Bajaj Auto is a major Indian automobile manufacturer. It is India's largest and the world's 4th
largest two- and three-wheeler maker. It is based in Pune, Maharashtra, with plants in Waluj near
Aurangabad, Akurdi and Chakan, near Pune. Bajaj Auto makes motorscooters, motorcycles and
the auto rickshaw.

7
Contents

1 Company's history
o 1.1 Timeline of new releases
2 Scooters
3 Motorcycles
4 Upcoming Models
5 New Image
6 Forbes Global 2000 Ranking - 2005
7 External links
8 References

Company's history

Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to produce
and sell 100,000 vehicles in a single financial year. In 1985, it started producing at Waluj in
Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year.
In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year.

Timeline of new releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak
1976 - Bajaj Super
1977 - Rear engine Autorickshaw
1981 - Bajaj M-50
1986 - Bajaj M-80, Kawasaki Bajaj KB100
1990 - Bajaj Sunny

8
 1994 - Bajaj Classic
1995 - Bajaj Super Excel
1997 - Kawasaki Bajaj Boxer, Rear Engine Diesel Autorickshaw

1998 - Kawasaki Bajaj Caliber, Legend(India's first four-stroke scooter)

2000 - Bajaj Saffire
2001 - Eliminator, Pulsar
2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar
2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj Discover
DTS-i
2005 - Bajaj Wave, Bajaj Avenger, Bajaj Discover
2006 - Bajaj Platina
2007 - Bajaj Pulsar-200
2008- Bajaj Discover
2009-CTS-100
2010-Bajaj Discover-150

Some of the models that Bajaj makes (or has made) are:

Scooters

o Bajaj Sunny
o Bajaj Chetak
o Bajaj Cub
o Bajaj Super
o Bajaj Wave
o Bajaj Legend

9
Motorcycles

o Kawasaki Eliminator
o Bajaj Pulsar
o Bajaj Kawasaki Wind 125
o Bajaj Boxer
o Bajaj CT 100
o Bajaj Platina
o Bajaj Caliber
o Bajaj Discover
o Bajaj Avenger

Upcoming Models

Bajaj Pulsar 220 DTS-Fi

Bajaj Krystal
Bajaj Blade
Bajaj Sonic

New Image

The company, over the last decade has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer, product range ranging from Scooterettes to
Scooters to Motorcycle. Its real growth in numbers has come in the last 4 years after successful
introduction of a few models in the motorcycle segment.

10
The company is headed by Rahul Bajaj who is worth more than US$1.5 billion.

Bajaj is the first Indian two wheeler automobile company in the market since
1945 with the name M/s Bacharj trading corporation private limited. In 1959 M/s
Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto
obtains license from the Government of India to manufacture two- and three-wheelers vehicles in
1959.

Bajaj Auto Ltd.

Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with Kawasaki Heavy Industries
of Japan to manufacture state-of-art range of latest two-wheelers in India. The JV has already
given the Indian market the KB series, 4S and 4S Champion, Boxer, the Caliber series, and
Wind125

Kawasaki Heavy Industries is a Fortune 500 company with a turnover of USD 10 billion
(Rs. 45,840 crore). It has crafted new technologies for more than hundred years. The
technologies of KHI have redefined space systems, aircrafts, jet engines, ships, locomotive,
energy plants, automation system, construction machinery, and of course high reliability two-
wheelers

KHI has given the world its legendary series of 600-1200cc Ninja and 1600 Vulcan
bikes. Straight from its design boards, the Kawasaki Bajaj Eliminator, India's first real cruiser
bike, redefines the pleasure of "biking" in looks as well as performance.

11
 CORPORATE PROFILE

'Inspiring Confidence,' the tagline, has build up confidence, through

excitement engineering, not only to domestic consumers but also internationally.
Established just eight decades back in 1926 by Jamnalal Bajaj, the company has
been vested with India's largest exporter of two and three wheelers, 196,710 units
in 2004-05, a great 26 per cent jump over the previous year.

Bajaj Auto Ltd. sales have increased by approximately 21 per cent in the
year 2004-05, which exceeds Rs 65.4 billion, a record in the history of the
company. The gross operating profit stands at Rs. 9.3 billion, again a record. The
profits after tax of the BAL are close to Rs. 7.7 billion, and the pre-tax return on
operating capital is at an impressive 80 per cent.

The strength of the company is its quality products, excellence in

engineering and design, and its ability to delight the customers. The Pulsar,
introduced in November 2004, is continually dominating the premium segment of
the motorcycle market, helping to maintain the market superiority. Discover DTSi,
one more successful bike on Indian roads, is in the 'value' segment of the
motorcycle market. It incorporates a high degree of power with fuel efficiency of a
100 cc motorcycle.

BAL is committed to prevention of pollution, continual improvement of

environment performance and compliance with all environmental legislation and
regulations. They always believe in providing the customer 'value for money' and
keep an special eye upon quality, safety, productivity, cost and delivery.

12
BAJAJ AUTO’S MISSION:
We at Bajaj Auto continue to firmly believe in providing the customer Value
for money, for years through our products and services. This we shall maintain and
improve,

In our decision making, quality, safety and service will be given as much
consideration as productivity, cost and delivery.

Quality shall be built into every aspect of our work life and business
operations. Quality improvements and customer satisfaction shall be the
responsibility of every employee.

13
 ORGANIZATIONAL STRUCTURE OF BAJAJ AUTO LTD.

LARGEST EXPORT

ML - Business Head (India)

CPM - Business Head (India)

Location Head - For the State

Biz. Development Account Managers Marketing Dept.

Customer Relations Account Executives Commercial Dept.

Sr. Ops. Executives

Ops. Executives

Bajaj Auto continued to be India’s largest exporter of two wheelers. During 2005-06, it
exported 75297 two which represented a growth of 33 per cent over 2004-05.

14
 TOTAL EXPORT OF TWO WHEELERS

200000
Numbers of wheelers

174907
150000
130945
100000 90210
50000 53366
0 14917 15602 29691
1999- 2000- 2001- 2002- 2003- 2004- 2005-
2000 2001 2002 2003 2004 2005 2006

Years

Two wheeler

15
 SWOT ANALYSIS

Let's analyze the position of Bajaj in the current market set-up, evaluating its strengths,
weaknesses, threats and opportunities available.

Strengths

 Highly experienced management.

 Product design and development capabilities.
 Extensive R & D focus.
 Widespread distribution network.
 High performance products across all categories.
 High export to domestic sales ratio.
 Great financial support network (For financing the automobile)
 High economies of scale.
 High economies of scope.
Weaknesses
 Hasn't employed the excess cash for long.
 Still has no established brand to match Hero Honda's Splendor in commuter segment.
 Not a global player in spite of huge volumes.
 Not a globally recognizable brand (unlike the JV partner Kawasaki)
Opportunities
 Double-digit growth in two-wheeler market.
 Untapped market above 180 cc in motorcycles.
 More maturity and movement towards higher-end motorcycles.
 The growing gearless trendy scooters and scooterette market.
 Growing world demand for entry-level motorcycles especially in emerging markets

16
Threats
 The competition catches-up any new innovation in no time.
 Threat of cheap imported motorcycles from China.
 Margins getting squeezed from both the directions (Price as well as Cost)

The Inevitable Change

Bajaj on internal analysis found that it lacked –
1. The technical expertise to deliver competitive goods.
2. The design know-how.
3. And the immediate inability to support the onslaught of competitors.
All these forced Bajaj to look for an international partner who could bring in technology
and also offer some basic platforms to be manufactured and marketed in India. Kawasaki of
Japan is a world-renowned manufacturer of high performance bikes. Bajaj entered into a
strategic tie-up with Kawasaki in late 1990s to enhance its product line and knowledge up-
gradation to support long-term strategies.

This served the purpose of sustaining the market competition for a while. From 1996 to
2000, Bajaj invested hugely in infrastructure while simultaneously developing product design
and innovation capabilities, which is the prime reason behind the energetic Bajaj of 21st century.
Bajaj introduced a slew of products right from entry-level motorcycle to the high premium
segment right from 2001 onwards, and since then its raining success all the way for Bajaj.

Last quarter, Bajaj had impressive performance growing at a rate of 20%+ when the
largest manufacturer grew at just 6%. This stands a testimony to the various important strategic
decisions over the past decade.

17
 PRODUCT RANGE
Scooters

o Bajaj Wave::
Bajaj Wave

Manufacturer Bajaj Auto

Production 2005-present

Price

Engine 109.7cc, 8 hp

Motorcycles:

Bajaj Pulsar DTS-i

Manufacturer Bajaj Auto

Production 2001-present

Price Rs. 58655-83885

18
o Bajaj Pulsar 150 DTSi Engine 150 cc/180 cc/200 cc/220 cc
o Bajaj Pulsar 180 DTSi Air-cooled, four-stroke cycle,
o Bajaj Pulsar 200 DTSi Upto 20 bhp (14.6 kW) @8500
o Bajaj Pulsar 220 DTS-Fi rpm

o Bajaj Discover120cc Bajaj Discover DTS-i

o Bajaj Discover135cc:

Manufacturer Bajaj Auto

Production 2004-present

Price Rs.47000-49200

Engine 120 cc and 135 cc Air-cooled,

four-stroke cycle, single piston.

19
o Bajaj Avenger: Bajaj Avenger DTS-i

Manufacturer Bajaj Auto

Production 2005-present

Price Rs. 64524

Engine 178.6 cc Air-cooled, four-stroke

cycle, single piston,
Power: 16.5 hp @ 8000 rpm

Bajaj Platina

Manufacturer Bajaj Auto

Production 2006-present

Price Rs. 38621

Engine 100 CC, four stroke, single piston

20
 MILESTONES
1945 - Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private
Limited.
1948 - Sales in India commence by importing two- and three-wheelers.
1959 - Bajaj Auto obtains license from the Government of India to manufacture two- and
three wheelers.
1960 - Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant.
1970 - Bajaj Auto rolls out its 100,000th vehicle.
1971- The three-wheeler goods carrier is introduced.
1972 - The Bajaj Chetak is introduced.
1975 - BAL & Maharashtra Scooters Ltd. joint venture.
1976 - The Bajaj Super is introduced.
1977 - The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and
sales of 100,000 vehicles in a single financial year.
1981 - The Bajaj M-50 is introduced
1984 - Foundation stone laid for the new Plant at Waluj, Aurangabad.
1986 - The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced.
500,000 vehicles produced and sold in a single financial year.
1990 - The Bajaj Sunny is introduced
1991 - The Kawasaki Bajaj 4S Champion is introduced.
1998 - Kawasaki Bajaj Caliber rolls out of Waluj.
2001- Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’.
Eliminator is launched.
2003- Pulsar DTS-i is launched.
2004 - Bajaj unveils new brand identity, new symbol, logo and brand line
2007 - 200 cc Pulsar DTS-i launched

21
 BAJAJ PULSAR DTSI 150CC
Generation next technology included in the package
of the equipments of this high flying bike is the
revolutionary digital biking. Digital biking is the
combination of various advanced systems like
Digital Twin Spark ignition (DTSi). Its highly
masculine outlook with sporty, dashing structure
gives the complete satisfaction of dare riding. Bajaj
Pulsar enables its rider to tackle the situation of overcrowded street due to the
presence of 17" alloy wheels with 1330 mm wheelbase. Its comfort statement
includes front telescopic suspension, Nitro X - Nitrogen assisted rear gas shockers
with triple rated spring. Due to these comfort features, this bike is highly
accommodative in any terrain.
Feeling of proper riding is provided by different high end
features like improved clutch, cylinder head with Roller Rocker Arms, optimized
intake and exhaust systems & new valve timings. Its advanced Exhaust TEC
(Torque Expansion Chamber) technology ensures the higher performance at lower
rpm.

22
DOMINANT PRESENCE OUTSIDE INDIA
Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt

Overseas Businessman

Mrs. & Mr. Ramiro Villeda, Phd.

CPIM, President
Veloleda Consulting Group, Inc
World Class Value Chain Management
Suite 14F, Yan-Dang Plaza
107 Yan-Dang Roa
Shanghai 200020, P R China
Tel.: +86(0)21 63725393/63840513
Mobile : 1(915) 9206150
Fax : 86(0)21 6327617
E-mail: vcgi@ix.netcom.com/rvilledaconsulting.com
Website : www.villedaconsulting.com

23
Bajaj Auto

24
 Balance Sheet of Bajaj Auto Ltd. 2005-06

Mar ' 06 Mar ' 05

Sources of funds
Owner’s funds
Equity share capital 101.18 101.18

Share application money - -

Preference share capital - -
Reserves & surplus 4,669.55 4,033.17

Loan’s funds
Secured loans 0.02 -

Unsecured loans 1,467.13 1,226.99

Total 6,237.88 5,361.34

Uses of funds
Fixed assets
Gross block 2,894.22 2,765.17

Less : revaluation reserve - -

Less : accumulated depreciation 1,761.22 1,628.64
Net block 1,133.00 1,136.53
Capital work-in-progress 24.18 8.36
Investments 5,753.45 4,560.58

Net current assets

Current assets, loans & advances 3,062.22 2,662.65

25
 Less : current liabilities & provisions 3,734.97 3,006.77
Total net current assets -672.75 -344.12
Miscellaneous expenses not written - -

Total 6,237.88 5,361.34

Notes:
Book value of unquoted investments 247.22 253.59

Market value of quoted investments 7,303.41 5,033.64

Contingent liabilities 719.06 573.24
Number of equity sharesoutstanding 1011.84 1011.84
(Lacs)

Profit & Loss Account of Bajaj Auto Ltd.

Particulars Mar ' Mar '

06 05
Incomes:
Operating income 7,572.62 5,852.36

Expenses:
Material consumed 5,397.61 4,151.31
Manufacturing expenses 138.59 132.38
Personnel expenses 282.45 250.59
Selling expenses 258.92 257.40
Administrative expenses 240.02 207.78

26
Expenses capitalized -24.81 -19.84
Cost of sales 6,292.78 4,979.63
Operating profit 1,279.84 872.73
Other recurring income 369.99 297.93
Adjusted PBDIT 1,649.83 1,170.66
Financial expenses 0.34 0.67

Depreciation 191.00 185.37

Other write offs 4.05 4.04
Adjusted PBT 1,454.44 980.59
Tax charges 479.11 319.63
Adjusted PAT 975.33 660.96

Non recurring items 88.91 87.11

Other non cash adjustments 59.03 -18.91
Reported net profit 1,123.27 729.16
Earnings before appropriation 1,123.27 729.16
Equity dividend 404.74 252.96

Preference dividend - -
Dividend tax 56.76 35.48
Retained earnings 661.77 440.72

27
Registered under the Indian Companies Act, VII of 1913

REGISTERED OFFICE Akurdi, Pune 411 035

WORKS Akurdi, Pune 411 035

Bajaj Nagar, Waluj Aurangabad 431 136
Chakan Industrial Area, Chakan, Pune 411 501
Share prices of Bajaj auto ltd.
From 30-july-2007 to 03-aug-2007

2,400.00

2,350.00

2,300.00

2,250.00

2,200.00 3-Aug-07
2-Aug-07
2,150.00
1-Aug-07
31-Jul-07
2,100.00
30-Jul-07
2,050.00
Open High Low Close
3-Aug-07 2,295.00 2,340.00 2,295.00 2,327.80
2-Aug-07 2,339.90 2,339.90 2,265.60 2,291.45
1-Aug-07 2,350.00 2,350.00 2,271.40 2,286.50
31-Jul-07 2,275.00 2,369.90 2,177.90 2,354.80
30-Jul-07 2,314.70 2,345.00 2,250.00 2,294.15

28
 SWOT ANALYSIS OF BAJAJ AUTOMOBILES

STRENGTHS:
Bajaj Automobiles draws it's strength from 29 years of experience in handling
the ever changing automobile scenario
strong customer relationships
ability to provide the cutting edge technology at best-value-for-money
an excellent service & support infrastructure.

WEAKNESSES:
The company needs to evolve a comprehensive plan & strategy to make inroads
into a part of middle class & upper middle class.
Lack of R & D centers also makes it difficult to launch new products over here.

OPPORTUNITIES:
The present rate of growth of the Automobile Industry & a large potential
available in these areas provides excellent opportunity for the company to
widen its market.
With the fast growing economy the pricing strategy needs to be tackled with
care as it can decide upon long term decisions of the company.
Globalization is yet another opportunity, if followed effectively & promptly.

THREATS:
It is natural that threats from the existing as well as new entrants will affect the
present turnover & Market share. The nearest competitors having the identical
product range are the greatest threat to the company.

29
30
 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

31
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:

32
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 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.

33
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

34
 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.

35
 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.

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

36
 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 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.

37
Objectives of the Study

1) To analyze Customer Awarenesstowards HEROmotor bikes

2) To get feed back on what consumer expects from Hero Honda

3) To analyze Customer Awarenesstowards services offered by HEROand

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 HEROlost 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.

38
 Company Profile

Hero Motocorp Ltd. formerly HEROis an

Indian motorcycle and scooter manufacturer based in New Delhi, India.
HEROstarted 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 HEROMotors
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 HEROMotors 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 grow at a double-digit pace since inception. The technology in
the bikes of HEROfor almost 26 years (1984–2010) 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

39
large sales and service network with over 3,000 dealerships and service points
across India. HEROhas a customer loyalty program since 2000, called the
HEROPassport 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
HEROin the 13th position among the brands in India.

40
 PRODUCT RANGE

 Sleek
 Street
 Achiever
 Ambition 133, Ambition 135
 CBZ, CBZ Star, CBZ Xtreme
 CD 100, CD 100 SS, HEROJoy, 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 off-road and on road Bike.

41
COMPANY PROFILE

42
Hero MotoCorp formerly Hero Honda is a motorcycle and scooter manufacturer
based in 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

Termination of Honda joint venture

In December 2010, the Board of Directors of the Hero Honda Group have decided
to terminate the joint venture between Hero Group of India and Honda of Japan in
a phased manner. The Hero Group would buy out the 26% stake of the Honda in
JV Hero Honda.Under the joint venture Hero Group could not export to
international markets (except Sri Lanka) and the termination would mean that Hero
Group can now export. Since the beginning, the Hero Group relied on their
Japanese partner Honda for the technology in their bikes. So there are concerns
that the Hero Group might not be able to sustain the performance of the Joint
Venture alone
Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by the London
firm The logo was revealed on 9 August 2011 in London, the day before the
third Test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is
free to use any vendors for its components instead of just Honda-approved
vendors.

43
Company’s performance
During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of
12% over last year. In the same year, the company had a market share of 57% in
the Indian market. Hero Honda sells more two wheelers than the second, third and
fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda
Splendor sells more than one million units per year.
Total unit sales of 54,02,444 two wheelers, growth of 17.44 per centTotal net
operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70
per share on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54 -

44
 HISTORY
Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.

 1956 -- Formation of Hero Cycles in Ludhiana(majestic auto limited)

 1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
 1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan
signed Shareholders Agreement signed
 1984 -- Hero Honda Motors Ltd. incorporated
 1985 -- Hero Honda motorcycle CD 100 launched.
 1989 -- Hero Honda motorcycle Sleek launched.
 1991 -- Hero Honda motorcycle CD 100 SS launched.
 1994 -- Hero Honda motorcycle Splendor launched.
 1997 -- Hero Honda motorcycle Street launched.
 1999 -- Hero Honda motorcycle CBZ launched.
 2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
 2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
 2003 -- Hero Honda , motorcycle CD Dawn, Hero Honda motorcycle Splendor,
Hero Honda motorcycle Passion Plus and Hero Honda motorcycle
Karizma launched.
 2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle
CBZ* launched.
 2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD
Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever
and Hero Honda Scooter Pleasure.

45
 2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models
of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.
 2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,
Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.
 2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and
limited edition of Hero Honda motorcycle Hunk launched
 2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero
Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor
launched.
 2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ
Xtreme, Karizma launched.
New licensing arrangement signed between Hero and Honda.

 August 2011 -- Hero and Honda part company, thus forming Hero
MotoCorp and Honda moving out of the Hero Honda joint venture.

 November 2011 -- Hero launched its first ever Off Road Bike Named Hero
"Impulse"

46
 PRODUCT INFORMATION AND PRODUCT MIX

 Achiever
 Ambition 133, Ambition 135
 CBZ, CBZ Star, CBZ Xtreme
 CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
 Glamour, Glamour F.I
 Hunk
 Karizma, Karizma R, Karizma ZMR FI
 Passion, Passion+, Passion Pro
 Pleasure
 Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor, Splendor
NXG,Splendor PRO
 Impulse

ACHIEVER

FEATURES
5-Spoke, black alloy wheels.
Best mileage in 150cc category.

47
ATFT 150cc Engine for the perfect balance of high power and fuel economy
Specially designed seat for the great riding experience.
Puncture resistant tuff-up tube
COLOURS

PRICE FOR MUMBAI

ExShowroom On Road
Self Start 58,653 66,791
CBZ XTREME

FEATURE
New digital – Analog combo meter console
All secure ignition switch with key shutter
Diamond lustre headlight
Anti drag fuel tank
5 spoke wheels & front and rear disc brakes.
Prism shell LED tail lamp

48
COLOUR

PRICE in MUMBAI
ExShowroom On Road
Self Start 58,653 66,791
CD DAWN

FEATURES
A new engine for better performance.
Powerful headlight provides much improved visibility.
New and advanced adjustable shock absorbers.
Extra-wide seats for extra riding comfort.
Padlock provision for theft security.
Matte black for style & good looks.
Stylish muffler protector.
Attractive graphics.

49
COLOURS

PRICE in MUMBAI
ExShowroom On Road
Spoke Wheel 36,179 41,703
CD DELUX

FEATURES
New engine for enhanced performance & stress-free ride.
Trapezoidal multi-reflector headlight for enhanced visibility provides better safety
& trendy trapezoidal shape lends more appeal to the bike.
Broad visor with aerodynamic shape.
Cool 3D graphics & knee grip makes the bike look very attractive & a comfortable
seating posture provides a stress-free ride.
Extra wide seat, more seating space provides better riding comfort for both.

50
COLOUR

PRICE IN MUMBAI
ExShowroom On Road
Spoke Wheel 36,179 41,703

GLAMOUR

FEATURES
Scintillating new graphics.
All new stylish visor and headlights.
Edgy new muffler cover.
Eye catching digital analog combo meter console.
All new aerodynamic air scoop shrouds.
COLOURS

PRICE IN MUMBAI
ExShowroom
On Road

51
Drum 51,703 58,550
Disc 53,700 60,722
GLAMOUR FI

FEATURES
Edgy new visor and headlight.
Real time mileage indicator.
Bank angle sensor.
New digital analog combo meter console
Stunning new graphics.
COLOURS

PRICE in MUMBAI
ExShowroom On Road
Drum 57,640 65,008
Disc 61,844 69,580

52
HUNK

FEATURES
Flared fenders and tubeless tyres
Conturedvisior
Analog-Digital speed panel in chrome-tinged flame orange console
Red Hot LED tail light
Ridged muffler cover with front and rear disc brakes.
COLOURS

53
PRICE IN MUMBAI
ExShowroom On Road
Single Disc 65,263 73,270
Double Disc 68,416 76,700
KARIZMA

FEATURES
Exciting new graphics
Sporty undercowl
Large diameter front-wheel disk brake
Enhanced visor
COLOURS

54
PRICE IN MUMBAI
ExShowroom On Road
Black Cast 79,393 88,942
Red Cast 80,193 89,742
KARIZMA ZMR

FEATURES
Astra gold front and rear disc plates.
Aerodynamic design for superior handling at high speeds
Multi – Functional digital console with blue iIIumination and personalised
message.
Sporty full body cowl with body-coloured rear-view mirrors.
Excellent visibility and less prone to damage
High intensite integrated LED tail light with integrated clear lens indicators

55
COLOURS

PRICE in MUMBAI
ExShowroom On Road
Cast Wheel 100,200 111,571
Passion Pro

FEATURES
Digital-Analog speedometer
Stylish visor with black-tinted windscreen & clear–lens indicator
Radical twin bulb tall light
Stylish new generation graphics
New age high performance APDV engine
Front disc option
COLOURS

56
PRICE IN MUMBAI
ExShowroom On Road
Cast Self 49,759 56,436
Spoke Self 48,708 55,293

PLEASURE

FEATURES
Exciting body graphics.
Less turning radius
Smooth suspension system
New meter console
Puncture-Resistant tuff up tube
Trendy rear grip; modern tail light
Powerful 100cc engine; gearless transmission with light-weight ABS body
Wide seat; large under-seat box
Extra leg room.
Maintenance-Free battery
COLOURS

57
PRICE IN MUMBAI
ExShowroom On Road
Pleasure 42,916 48,949

SPLENDOR

FEATURES
Next generation aerodynamic design with Black alloy wheels
Next generation attractive meter console and visor
Power start

58
Next generation styling
Next generation advanced pro series APDV engine for better power, better mileage
& better acceleration
Next generation clear lens winkers
COLOURS

PRICE IN MUMBAI
ExShowroom On Road
Cast Self 46,186 52,550
Spoke Self 45,135 51,407
SPLENDOR +

FEATURES
Exciting new body graphics
Powerful multireflector headlight, tail light and indicators
Stylish new alloy wheels
Better suspension
Carrier as part of standard equipment

59
COLOURS

PRICE IN MUMBAI
ExShowroom On Road

Cast Wheel 44,400 50,607

Spoke Wheel 43,349 49,464

SPLENDOR PRO

60
FEATURES
Stylish meter console
Exciting new body graphics
Stylish new alloy wheels
Power start
COLOURS

61
 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

62
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.

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. 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

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 motor bikes.

The area of this survey consist of Lucknow city

63
 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
motorbikes.

Sampling Technique

Convenient Sampling technique is used for this project.

Data Collection Tool

Questionnaires as the primary form of collecting data.

Statistical techniques

64
 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.

c) This study covers only a limited HERO 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

65
 ANALYSIS OF DATA COLLECTED

Customer Awareness towards HERO MOTOCORP Motor Bikes in

Lucknow 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 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 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 offers.

66
 OBJECTIVES OF THE STUDY
1. To analyze Customer Awarenesstowards HEROmotor bikes

2. To get feed back on what consumer expects from Hero Honda

3. To analyze Customer Awarenesstowards services offered by HEROand

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 HER
Omotor bikes.

The area of this survey consist of Lucknow 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

67
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.

68
 DATA
ANALYSIS
RESULTS AND
DISCUSSIONS

69
 Table 1

Are your aware about 150 cc bike brands available in the market?

Are your aware about 150 cc No. of respondents

bike brands available in the
market?

Fully Aware 93
Aware 76
Less aware 31

Table 1 shows that 93 of respondents are fully aware about 150 cc bikes in market,
76 of respondents just aware about 150 cc bikes and only 31 of respondents are
have little bit knowledge about 150cc.

Are your aware about 150 cc bike brands

available in the market ?

93
100
76
No. of respondents

80

60

40 31

20

0
Fully Aware Aware Less aware

Fig. 1

70
 Table 2
How do you come to know about this brand/model of
150 cc bike?

How do you come to know about No. of respondents

this brand/model of 150cc bike?

Friends 45
Advertisement 87
Publicity 10
Family members 47
Any other 11

Table 2 shows that 45 of respondents came to know about brand of bikes from
friends, 87 of respondents came to know about brand of bikes from advertisement,
10 of respondents came to know about brand of bikes from publicity, 47 of
respondents came to know about brand of bikes from family members and 11 of
respondents came to know about brand of bikes from other sources.

How do you come to know about this brand/model of 150 CC bike

?

87
90
80
No. of respondents

70
60
45 47
50
40
30
20 10 11
10
0
Friends Advertisement Publicity Family Any other
members

Fig. 2

71
 Table 3
Which factor influence you more to purchase a bike?

Which factor influence you No. of respondents

more to purchase a bike?

Brand image 53
Fuel efficiency 81
Price 27
Comfort 17
Syle 25

Table 3 shows that 53 respondents are influenced to purchase a bike from its brand
image, 81 respondents are influenced to purchase a bike from its Fuel efficiency,
27 respondents are influenced to purchase a bike from its lesser Price, 17
respondents are influenced to purchase a bike from its Comfort, 25 respondents are
influenced to purchase a bike from its Style.

Which factor influence you more to purchase a bike ?

100
81
80
No. of respondents

60 53

40 27 25
17
20

0
Brand image Fuel efficiency Price Comfort Syle

Fig. 3

72
 Table 4
Are you satisfied with its overall performance?

Are you satisfied with its No. of respondents

overall performance?

Fully Satisfied 41
Satisfied 104
Moderate 42
Less satisfied 10
Poor 3

Table 4 shows that 41 of respondents are fully satisfied with the performance of
their bikes, 104 of respondents are satisfied with the performance of their bike, 42
of respondents are moderate in satisfaction with the performance of their bikes and
3 of respondents are poorly satisfied with the performance of their bike.

Are you satisfied with its overall performance?

120
104
No. of respondents

100

80

60
41 42
40

20 10
3
0
Fully Satisfied Moderate Less satisfied Poor
Satisfied

Fig. 4

73
 Table 5
According to you which company gives the most benefit to customers?

According to you which No. of respondents

company gives the most benefit
to customers?

Honda 63
Bajaj 109
TVS 28

Table 5 shows that 63 of respondents are saying that the Honda is providing more
benefits of the services to the customers, 109 of respondents are saying that the
Bajaj is providing more benefits of the services to the customers and 28 of
respondents are saying that the TVS is providing more benefits of the services to
the customers.

According to you which company gives the most

benefit to customers ?

28
63
Honda
Bajaj
TVS

109

Fig. 5

74
 ANALYSIS OF THE DATA COLLECTED

6 Gender of the Respondents

Table No. 6

GENDER NO OF % OF
RESPONDENTS RESPONDENTS
MALE 96 96%
FEMALE 4 4%

TOTAL 100 100%

Source: survey data

Interpretation:

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

75
 Chart No .6

Gender of Respondents

Male
Female

Analysis:

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

76
7 Age of the Respondents

Table No. 7

AGE NO. OF % OF
RESPONDENTS RESPONDENTS
18-25 42 42%
25-40 34 34%
40-55 19 19%
ABOVE 55 5 5%
TOTAL 100 100%

Source: survey data

Interpretation:

The above table showing the age categories of the HEROcustomers who
participated in the survey

77
 Chart No.7

Age of the respondents

45

40

35

30

No of 25
Re spondents 20

15

10

0
18-25 25-40 40-55 >55
Age

Analysis:

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

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8. Occupation of the Respondents

Table No. 8

Occupation No of Respondents % of Respondents

Business 18 18%
Professional 14 14%
Employee 20 20%
Student 38 38%
Others 10 10%
Total 100 100%

Source: survey data

Interpretation:

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

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 Chart No. 8

Occupation of the Respodents

40

35

30
No of Respondents

25

20

15

10

0
Business Pfsnl Emplye Stdnt Others
Occupation

Analysis:

The majority of the HER Customers participated in the survey were students.
There were 38% and the 20% employees who are HER Owners. And the
Professionals and Businessmen constitute only 32%.

80
9. SOURCES OF AWARENESS OF HERO HONDA

Table No.9
SOURCE NO. OF RESPONDENTS % OF RESPONDENTS
ADVERTISEMENT 38 38%
FRIENDS 24 24%
RELATIVES 10 10%
OTHERS 28 28%
TOTAL 100 100%
Source: survey data

INTERPRETATION: -

The above table tells about which of the source is more effective in spreading
the awareness about HERO bikes
Chart No 9

SOURCES OF AWARENESS OF
40.00%
38% HERO HONDA

35.00%

30.00% 28%
% of Respondents

25.00%
24%

20.00%

15.00%

10%
10.00%

5.00%

0.00%
ADVERTISEMENT FRIENDS RELATIVES OTHERS

Status

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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 HEROis able to influence its consumer base to tell other about
their product.

82
 10. SATISFACTION ABOUT PRODUCT BRIEFING DONE BY SALES
EXECUTIVE
Table No. 10
SATISFACTION NO. OF % OF
RESPONDENTS RESPONDENTS

YES 92 92%
NO 08 08%
TOTAL 100 100%
Source: survey data

INTERPRETATION: -

This table showing the satisfaction level of customer about the product
briefing done by the sales executive
Chart No 10
SATISFACTION ABOUT SALESMANSHIP

100.00% 92%

90.00%

80.00%
% of Respondents

70.00%

60.00%

50.00% No of Respondent

40.00%

30.00%

20.00%

10.00%
8%

0.00%
YES NO

SATISFACTION

83
Analysis:

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

84
 CONCLUSION

HERO 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 Splendor it has its own importance still in the market. But
from the past two or three years HERO 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 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.

Customer Awareness towards HERO 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 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.

There is a preference of executive segment of bikes has been observed in the

metros ore than 90% of the bike owners are satisfied with the performance of their
bikes The major reason for dissatisfaction among the least number of dissatisfied
owners is the maintenance cost which they bear. Majority of the customers want to
have some incentives with the purchase of the bike.

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 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 motor cycles were the market leader in the Two Wheeler
segment. But they are losing their grip in the market. Even the 48%
HERO customers said that if they get a second chance they would
prefer Bajaj.

2. The Brand Name of HERO is still there in the market and in the minds
of the customer.

3. There are only a few women HERO customers and they own HERO
Pleasure.

4. Now days the main HERO customers are students between 18-25
years of age and they like the bike because of its mileage.

5. Advertisements of HERO bikes are very effective. Introduction of

Hrithik Roshan helps HERO a lot.

6. Majority of the customers got the opportunity of test ride and they are
satisfied with the product briefing by the HERO sales executive.

86
7. The most demanded HERO Brands are Splendor+ and Super
Splendor. Major part of the users of this brand is employees next are
students.

8. Most of the HERO customers have satisfied with the after sale service
and servicing of bike.

9. From analysis and interpretation it is found that HERO 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 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 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 HER 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.

87
15. The most important factor which influenced the customer to buy a
HERO bike is price reduction followed by fuel efficiency.

16. Customers are satisfied about HERO 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 followed by TVS.

18. HERO bikes are said to have very good resale value in the market.

88
 RECOMMENDATONS AND SUGGESTIONS
Recommendation refers to the outcome of the research work done and the
suggestions for implementation i.e. findings.
1. It is suggested that manufacturer should make all efforts to control cost.
2. New technology should be applied according to the requirement of the
customer.
3. Provide various schemes which attract the customers.
4. Spare parts of the bikes should be easily available in the market.
5. Bike should be fuel efficient.
6. Bike should be available in different colours so as to attract college going
students.
7. Bike should be given sportier look.
8. Most of the customers are of the view that the price tag of HERO 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.

9. CD-Dawn, Splendor+ and Passion Plus, could be added with more power,
mileage and given with more colours.

10. The customers should be provided with enough information regarding

effective maintenance of the bike so that the consumers get the best from the
bike.
11. HERO 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.

89
12. HERO 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.

13. Many existing customer have stated that some HERO 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.

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

90
 BIBLIOGRAPHY
1. Schiffman Leon G. and Kanuk Leslie Lazar Consumer Behaviour
6th edition Published by: Prentice-hall of India Private Limited. ( page no.
2&6)
2. Gupta C.B. and Dr. Nair N. Rajan Marketing
Management 5th edition Published by: Sultan chand & sons (page no. 1.69)
3. Mamoria C.B. and Mamoria Satish Marketing
Management 4th edition Published by: Kitab Mahal (page no. 161)
4. Nair Suja R. Consumer Behaviour
Indian prospective Ist edition Published by: Himalaya Publicating Home (
page no. 3)
Bennett Peter D. and Kassarjian Harold Consumer Behaviour 8th

91
 Questionnaire
 Are you aware about the 150cc bike brands available in the market?
Fully aware
Aware
Less aware

 Which of the following model/brand of 150cc motorcycle you like the most
1 2 3
HONDA (Unicorn) -- -- --
BAJAJ (Pulsar 150cc) -- -- --
TVS (Apache) -- -- --

 How did you came to know about this brand /model of 150cc bike –
Through friends
Advertisement
Publicity
Family members
Any other

 Which factor influence you more to purchase the bike –

Brand image
Fuel efficiency
Price
Comfort
Style

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 How do you grade the following qualities-
Safety
Comfort
Fuel efficiency
Style
performance

 Why did you prefer this model /bike?

1 2 3 4
Price -- -- -- --
Mileage -- -- -- --
After sales -- -- -- --
Service
Power -- -- -- --

 Are you satisfied with its overall performance?

Fully satisfied
Satisfied
Average
Less satisfied
Poor

 According to you which company gives the most benefits to customers?

HONDA
BAJAJ
TVS

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 Occupation:-
Business Professional Employee
Student Others

 How did you come to know the name HERO?

Friends Advertising Relatives Others

 Are you satisfied with product briefing done by the sales executive?

Yes No

 Have you gone for test drive?

Yes No

 What is your opinion about overall sales process?

Very good Good
Fair Poor

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

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

94
 Rank the attributes of HERO bikes as per your preference, Rank 1-Most
attractive, Rank 6-Least attractive
Style Mileage
Performance Comfort

Price Br Brand Name

 What is your opinion on the performance of HERO bikes?

Excellent Good
Satisfactory Poor

95