A Study on Customer Satisfaction on Hero Moto Crop

A PROJECT REPORTON

“A STUDY ON CUSTOMER SATISFACTION ON

HERO MOTOCORP”

Submitted in partial fulfillment of the requirement of the award of the degree of “bachelor of Business management’’ of Bangalore University

Submitted by

MR. P.HARISH KUMAR

(Reg.no.13VFC24067)

Under the Guidance of

MRS.MANJULA

NEW HORIZON COLLEGE

MARATHALLI BANGALORE -560103

2015-2016

`STUDENT DECLARATION

I, P.HARISH KUMAR student of bachelor of business management, NEW

HORIZON COLLEGE BANGALORE, bearing registration number 13VFC24067 declare this project entitled “A STUDY ONCUSTOMER SATISFACTION ON

HERO MOTOCORP” was prepared by me during by me during the year 2015-2016 and was submitted in partial fulfillment for the award of bachelor of business management to Bangalore University,

I also declare that this project is original and genuine and has not been submitted to any other university/ institution for the award of any degree, diploma or other similar titles or purposes

Place: Bangalore Name:P.HARISH KUMARDate: Reg.no.13VFC24067

GUIDE CERTIFICATE

Certified that the project report entitled“A STUDY ON CUSTOMER

SATISFACTION ON HERO MOTOCORP’ submitted by

MR.P.HARISHKUMAR bearing registration no. 13VFC24084 to bangalore university in partial fulfillment for the award of “Bachelor of Business

Management” of Bangalore University, Bangalore is a record of independent project work under taken by him, under my supervision and guidance and the project has not be submitted either in part or whole for the award of any other degree or diploma of any university.

Place: Bangalore MRS. SREEJA NAIR

Date: (Assistant Professor

HOD CERTIFICATE

This is to certify that P.HARISH KUMAR(13VFC24084) isbonafide student of bachelor of business management. The project work entitle “ A STUDY ON

CUSTOMER SATISFACTION ON HERO MOTOCORP’’ is bonafide work carried out by P.HARISH KUMAR (13VFC24067) on partial fulfillment of the requirement for the award of degree in business management of Bangalore university during the year 2015-2016. It is to certify that all corrections/suggestions have been incorporated in the project report and a copy is deposited in the department library.

This project work as been approved as it satisfies the academic requirement for the award of bachelors of business management degree.

Place: Bangalore PRASANNA PRAKASH

Date: (HOD)

PRINCIPAL CERTIFICATE

This is to certify thatP.HARISH KUMAR (13VFC24067) bonafide student of this college. The project work entitled“ A STUDY ON

CUSTOMERSATISFACTIO ON HERO MOTOCORP’is bonafide work carried out by P.HARISH KUMAR (13VFC24067) in partial fulfillment of requirement for the award of degree in business management of

Bangalore University during the year 2015-2016.

Place: Bangalore DrR.BODHISATVAN

Date: (principal)

ACKNOWLEDGEMENT

I would like to thank all those persons who have contributed towards the successful completion of the project work. I am glad to say that working on this project was illuminating and enjoyable for me.

I take this opportunity to thank our respected chairmanSri.MohanManghnani, and our beloved principal Dr. Bodhi Sathvanfor their generosity and kindness to embrace us in, New Horizon College, Bangalore university. I have deep sense of gratitude to PRASANNA PRAKASH professor and head of the department. And Mrs. MANJULA, my internal project guides for her encouragement, guidance and valuable suggestions throughout the project.

I would like to thank all the faculty members of BBM and my friends who directly and indirectly helped me to complete this project.

Words fail me in expressing my deep sense of gratitude and affection to my parents, for their constant love and moral support without them I could not have been what I am.

P.HARISH KUMAR

(13VFC24067)

CONTENTS

CHAPTER No. CHAPTER NAME Pg.no

Chapter-1 INTRODUCTION 1-13

INDUSTRY PROFILE AND COMPANY Chapter-2 PROFILE 14-40

Chapter-3 RESEARCH DESIGN 41-50

DATA ANALYSIS AND 51-78 Chapter-4 INTERPRETATION

FINDINGS SUGGESTIONS AND 79-81 Chapter-5 CONCLUSIONS

BIBLIOGRAPHY 82

ANNEXURE 83-84

LIST OF TABLES

SL.NO LIST OF TABLES PAGE NO: 4.1 Showing type of Hero two wheeler models 51 owned 4.2 showing the source of information about Hero 53 4.3 showing the influenced people for buying Hero 55 4.4 Showing the preference of capacity &color 57 4.5 showing the responses on Vehicle delivery time 59 4.6 showing availability test drive during on 61 showroom visit 4.7 showing the reliability of Vehicle 63 4.8 showing level of Service Satisfaction 65 4.9 showing the brand name influence in purchase 67

4.10 showing the reason for preference 69

4.11 showing how long customer using hero two 71 wheelers 4.12 showing the area thatCustomer demanding to 73 improve in service 4.13 showing theproblems face at the time of service 75

4.14 showing therating of Service Performance of Hero Motors 77

LIST OF CHARTS

SL.NO LIST OF GRAPHS PAGE NO :

4.1 Showing type of Hero two wheeler models owned 52 in % 4.2 showing the source of information about Hero 54

4.3 showing the number people influenced for buying 56

4.4 showing the preference of capacity 58

4.5 showing the responses on Vehicle delivery time 60

4.6 showing availability test drive during on showroom 62 visit 4.7 showing the reliability of Vehicle 64

4.8 showing level of Service Satisfaction 66

4.9 showing the brand name influence in purchase 68

4.10 showing the reason for preference 70

4.11 showing how long customer using hero 72

4.12 showing the area that Customer demanding to 74 improve in service 4.13 showing the problems face at the time of service 76 4.14 showing the rating of Service Performance of Hero 78 Motors

A Study On Customer Satisfaction On Hero Moto Crop

EXECUTIVESUMMARY

In this project, an attempt has been made to ―study on customer satisfaction in Hero Moto Crop‖ This study has been conducted to analyze the customer‘s satisfaction level with special reference to Hero Moto Crop in Bangalore. Customer satisfaction includes factors like quantity, quality, products and service, Cost etc., they have large number of customers all over India, but this study has been conducted with special reference to customers in Bangalore only.

The study was conducted among the population of 120 where the sample size of 100 was drawn from the population. The sampling technique used in this study is stratified simple random sampling. The research design used for the study is descriptive research design. A questionnaire was used to interview the 100 respondents. The secondary data was collected through company website. Percentage analysis and statistical tools like chi-square for data analysis and interpretation.

The analysis and inferences were made according to varied opinions of the respondents regarding their quality of service and their behavior customers towards the Hero Moto Crop and also their opinion towards the competition of two wheelers vehicles. The attributes that influence the customers quality,service availability of spares value of money offered etc. The customer has given excellent rating for Hero Moto Crop in Domlur based on the inference till conclusion points towards their recommendations for satisfaction among the customers and there by the company to attract more numbers of customers.

A Study On Customer Satisfaction On Hero Moto Crop

INTRODUCRTION

The project is all about measuring the customer satisfaction in Hero motors. For the past few years every company is trying to satisfy its customers. The emphasis is on ways of retaining customers, then on attracting new customers. It is easy to attract new customers then to retain old customers. So, companies are trying to focus on this aspect of customer‘s satisfaction.

The sale of a product does not end with the sale transaction but it is the point at which the original marketing concept starts. The marketer has to see that whether the customer satisfied with that particular product/service or not. The post purchase behavior is important for a marketer. If there is any cognitive dissonance in the minds of the customers then that is enough to lose a customer. Keeping this in mind the companies are giving more importance to customer satisfaction.

This project work has been done to find out whether a customer is satisfied or dissatisfied, also to measure the level of the customer satisfaction and provide this feedback to the company. The first phase of the project involves the collection of information from the customers for interpreting the characteristics based on which the customer feels satisfied or dissatisfied. This information is collected by preparing a structured questionnaire. The questionnaire consists of both open-ended and closed-ended questions. The questionnaire is designed in such a way that a customer feels convenient to answer.

The collated information through the questionnaire is analyzed and presented in a statistical form. The findings are listed and suggestions to solve problems faced have been given in the suggestion part.

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Introduction to Customer Satisfaction

Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer expectation. In general satisfaction are a person‘s feelings of pleasure or disappointment resulting from comparing a products perceived performance relation to his/her expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectation customer is satisfied. If the performance exceeds the expectation the customer is highly satisfied.

Customer satisfaction cannot be very difficult. After all you either satisfied with the services you receive or you are not. If you don‘t you are not. If it is that easy, then obtaining people's opinion about how satisfied they are with relatively straight forward matter- or is it? Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers. It looks at what is involved from 3 different angles, the first is from the view of an organization wishing to understand, and measures, how satisfied its customer are with the products and services they receive from it. The second is from the perspective of a research agency that has been asked to obtain feedback from customers and about their experiences when dealing with companies. Finally it considers the issue from the perspective of consumers who participate in surveys, including both business customers and members of general public

Meaning of Customer Satisfaction Customer satisfaction is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and part of the four prospective of balanced score card.

In a competitive market place were businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy customer satisfaction drives successful private sector business.

High performing businesses have developed principles and strategies for achieving customer satisfaction. This paper presents a framework or set of ideas for using customer satisfaction principles and strategies to improve the quality responsiveness, and possibility of public sector privately provided services in vulnerable communities

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The framework suggested that resident who live in tough neighborhoods can be supported through customer satisfaction strategies to become empowered individuals who informed perspectives influence decisions about what, how, when, and where services are available to them.

Customer satisfaction is the customer‘s response to the evaluation of the perceived discrepancy between prior expectation and the actual performance of the product as perceived after its consumption.

Definition Cocotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a feeling developed from an evaluation of the experience."HERE, the timing of satisfaction response is driving consumption.

BUT there is general agreement with kotler (2003) that "customer satisfaction is a person's feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation." In short customer satisfaction is "The provision of goods or services which fulfill the customer expectation in terms of quality and service, in relation to price paid."

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INTRODUCTION TO MARKETING

Extending the Traditional Boundaries of Marketing

Until fairly recently, marketing focused primarily on exchanges of goods between individuals (business-to-consumer (B2C) marketing) and businesses (business-to- business (B2B) marketing). Industrial marketing deals with the organizational purchases of goods to support production of other goods or daily operations or for resale. With the growth of the services sector, marketers realized that services cannot be marketed in the same way as the products. Certain characteristics of services posed serious problems for marketers who realized that services marketing must be done differently and not with the same marketing mix (4 Ps) variables. Service characteristics (production and consumption of services take place at about the same time), heterogeneity (the problem due to the fact that no two service providers are like, nor are the service consumers) and perishability (service providers cannot maintain inventories of their products). To cope with these challenges, service marketers suggest additional 3 Ps – process, physical evidence and people. The process is aimed at solving the heterogeneity or variability problem associated with the services by providing a service Blueprint. The physical evidence solves some of the problems associated with the intangible nature of services. The physical evidence in terms of service environment, equipment, personnel and so on attempts to tangibilize the intangible. The final P – People – gives lot of attention to the service providers because they are, strictly speaking, part of the service provided. They can influence the perceived service quality in a big way. With the world becoming a global village, marketers started targeting global audience for their products and services. International marketers implement the basic marketing framework discussed earlier. However transactions that cross national boundaries encounter an additional set of environmental factors For example, differences in laws, economic conditions, cultural and business norms and consumer preferences other demand variations in marketing strategies. The biggest challenge in international marketing is managing the international business environment. With many uncontrollable factors, sharing complex relationships among them, the international marketer faces the dilemma of whether to standardize or differentiate his marketing mix Non-profit organizations encounter a special set of characteristics that influence their marketing activities. Like for-profit firms, non-profit firms may market tangible goods and/or NEW HORIZON COLLEGE Page 4

A Study On Customer Satisfaction On Hero Moto Crop intangible services and operate in B2C and B2B markets. An important distinction is that profit-seeking businesses tend to focus their marketing on just onepublic – their customers. Non-profit businesses however must often market to multiple publics (say, their clients and sponsors), which complicates decision making regarding the markets to target. Also a customer or service user may wield less control over the organization‘s destiny than would be true for customers of a profit-seeking firm. As a result, non-profit marketing must fine tune its marketing variables to adjust to these conditions.

Marketing concepts: Needs, Wants and Demands: The most basic concept underlying marketing is that of human needs. A need is a state of felt deprivation. It is a part of the human makeup. Humans have many needs, viz., physical needs, social needs, spiritual needs and so on. Wants are the form taken by needs as they are shaped by the one‘s culture and personality. Wants are thus shaped by both the internal and external factors. Wants are described in terms of objects that will satisfy needs.For example, thirst is a need. To quench this thirst, a person may consider a number of options – drink water or a soft drink or a fruit juice. These objects (which represent the different choices for a person to fulfill his/her need) comprise the potential want-list. As people are exposed to more objects that arouse their interest and desire, marketers try to provide more choices, that is, more want- satisfying products. People have almost unlimited wants but limited resources. Therefore, they want to choose products that provide the most satisfaction for their money. When backed by buying power (ability), a want becomes a demand Products: A product is anything that can be offered to a market to satisfy a need or want. People satisfy their needs and wants with products. Though the word suggests a physical object, the concept of product is not limited to physical objects. Marketers often use the expressions goods and services to distinguish between physical products and intangible ones. These goods and services can represent cars, groceries, computers, places, persons and even ideas. Customers decide which entertainers to watch on television, which places to visit for a holiday, which ideas to adopt for their problems and so on. Thus the term ‗product‘ covers physical goods, services and a variety of other vehicles that can satisfy

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Value and Satisfaction: When the customers have so many choices to choose from to satisfy a particular need, how do they choose from among these many products? They make their buying choices based on their perceptions of a product‘s value. The guiding concept is customer value. A customer will estimate the capacity of each product to satisfy his need. He/She might rank the products from the most need-satisfying to the least need-satisfying. Of course, the ideal product is the one which gives all the benefits at zero cost, but no such product exists. Still, the customer will value each existing product according to how close it comes to his/her ideal product and end up choosing the product that gives the most benefit for the rupee – the greatest value. Customers‘ needs and wants. If at times the term ‗product‘ does not seem to be appropriate, other terms such as market offering, satisfier are used Exchange, Transactions and Relationships: Marketing occurs when people decide to satisfy needs and wants through exchange. Exchange is the act of obtaining a desired object from someone by offering something in return. Though it is only one of the many ways people can obtain a desired object, it allows a society to produce much more than it would with any alternative system. For an exchange to take place, several conditions must be satisfied. Of course at least two parties must participate, and each must have something of value to the other. Each party also must want to deal with the other party and each must be free to accept or reject the other‘s offer. Finally, each party must be able to communicate and deliver. These conditions simply make exchange possible. Whether the exchange actually takes 20 place depends on the parties‘ coming to an agreement. If they agree, we must conclude that the act of exchange has left both of them better off or at least not worse off. After all, each was free to reject or accept the offer. In this sense, exchange creates value just as production creates value. It gives customers more consumption possibilities. A transaction is marketing‘s unit of measurement. It consists of a trade of valuesbetween two parties.A monetary transaction involves trading goods and services in return for money whereas a barter transaction involves trading goods and services for other goods and services. Transaction marketing is part of the larger idea of relationship marketing.Marketing is shifting from trying to maximize the profit on each individual transaction to maximizing mutually beneficial relationships with consumers and other parties. This is based on the assumption that if good relationships are built, profitable transactions will simply follow.

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Markets:The concept of transactions leads to the concept of a market. A market is the set of actual and potential buyers of a product. It may exist in a physical environment as a marketplace or in a virtual environment (on the internet platform) as a marketspace. To understand the nature of a market, imagine a primitive economy consisting of only four people a farmer, a fisherman, a potter and a hunter. differentways in which these traders could meet their needs. In the first case, self-sufficiency, they gather the needed goods for themselves. In the second case, decentralized exchange, each person sees the other three as potential buyers who make up a market. In the third case, centralized exchange, a new person called a merchantappears and locates in a central area called a marketplace. Each trader brings goods to the merchant and trades for other needed goods. Merchants and central marketplaces greatly reduce the total number of outlets.Transactions needs to accomplish a given volume of exchange. As economies grow, exchange becomes even more centralized, as seen in the growth of huge companies. Large supermarkets now serve millions of people who formerly shopped in smaller. MARKETING MIX

The marketing mix was proposed by professor E. Jerome McCarthy in the 1960s.[7] It consists four basic elements called the "four P's". Product is the first P representing the actual product.

Price represents the process of determining the value of a product. Place represents the variables of getting the product to the consumer such as distribution channels, market coverage and movement organization. The last P stands for Promotion which is the process of reaching the target market and convincing them to buy the product. The four Ps determine how marketing satisfies consumer needs. They are considered controllable marketing mix factors meaning that they can change or be altered as needed. Habits, lifestyle, and diet are all considered to be controllable risk factors

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THE SEVEN C’S OF MARKETING MIX

a) Commodity: In economics, a commodity is a substantially fungible marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services. The word commodity came into use in English in the 15th century, from the French commodité, "amenity, convenience". Going further back, the French word derives from the Latin commodities, meaning "suitability, convenience, advantage". The Latin word Commodus (from which English gets other words including commodious and accommodate) meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit". b) Cost: In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production.

c) Communication: Communication (from Latin commūnicāre, meaning "to share‖) is the act of conveying intended meaning to another entity through the use of mutually understood signs and semiotic rules. The basic steps of communication are the forming of communicative intent, message composition, message encoding, and transmission of signal, reception of signal, message decoding and finally interpretation of the message by the recipient. Channel: d) A marketing channel is a set of practices or activities necessary to transfer the ownership of goods from the point of production to the point of consumption. It is the way products and services get to the end-user, the consumer; and is also known as a distribution channel A marketing channel is a useful tool for management, and is crucial to creating an effective and well-planned marketing strategy.

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Another less known form of the marketing channel is the Dual Distribution channel. This channel is a less traditional form that allows the manufacturer or wholesaler to reach the end-user by using more than one distribution channel. The producer can simultaneously reach the consumer through a direct market, such as a website, or sell to another company or retailer that will reach the consumer through another channel, i.e., a store. An example of this type of channel would be franchising. e) Consumer:The consumer is the one who pays to consume goods and services produced. As such, consumers play a vital role in the economic of a nation. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.Recently in marketing instead of marketers generating broad demographic profiles and Fisio-graphic profiles of market segments, marketers have started to engage in personalized marketing, permission marketing, and mass customization. f) Circumstances: Addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:

N = National and International (Political, legal and ethical) environment

W = Weather

S = Social and cultural

E = Economic

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FUNCTIONS OF MARKETING:

Distribution Distribution is about deciding how you'll get the goods or services you want to sell to the people who want to buy them. Having an idea for a product is great, but if you aren't able to get that product to the customers you aren't going to make money. Distribution can be as easy as setting up shop in the part of a city where your target customers are -- but in an increasingly interconnected world, distribution more often than not now means that you'll need to take your products or services to the customers.

Financing It takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services.

Market Research Market research is about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business? Answering these questions requires that you do some on-the-ground observation of the market trends and competing products.

Pricing Setting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers -- but if you price it too low you might be robbing yourself of profits. The "right" price normally comes through trial and error and doing some market research. Product and Service Management Once you've determined the target market and set the price of your product or service, the goal becomes to effectively manage the product or service. This involves listening to customers, responding to their wants and needs, and keeping your products and services fresh and up to date. Promotion Most business owners are familiar with the idea of promotion. Advertising your products and services is essential to attracting new customers and keeping existing customers coming back. As the marketplace changes, you'll want to respond appropriately by tailoring your promotion messages to new media (such as Facebook

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or Twitter), by sticking with more conventional outlets -- or by using a mix of the old and new.

Selling While we tend to think of selling and marketing as being closely linked, selling is last on the list of the seven functions of marketing. This is because selling can happen only after you've determined the wants and needs of your customer base and are able to respond with the right products at the right price point and time frame FACTORS INFLUENCING THE MARKETING STRATERGIES

•Regulatory: This refers to laws and legality (governmental policies) that may affect the way marketing can be characterized. For example, government restriction on the importation of a particular product might hinder the marketers playing in that particular field.

• Economic. Various trends in the economic business cycle, including inflation, recessions

, deficit or income level. Each of these factors can have a direct impact on marketing which may have to be re-evaluated and overhauled as a result.

• Social: The social forces refer to the structure and dynamics of individuals and groups and their

Behavior, beliefs, thought patterns and lifestyles, friendships, etc. When consumers change their needs and wants, this directly affects marketing strategies.

• Political: The socio-economic conditions are closely related to the state of the governmental institutions. Depending on the governmental impact on bureaucracy, corruption, freedom of

Speech and other limitations (or opportunities), the marketing strategies will adapt to the political conditions.

• Competitive: Competition refers to the numbers of similar competitive product brands. A new competitor entering the market will directly affect the marketing strategies of the incumbent companies. Firms offering similar services or products often achieve differentiation through

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• Technology. The marketing strategies often adapt to the pace of development of the consumer

Demand and exponential technological progression Factors of Customer Satisfaction 1. Service of quality 2. reliability of service 3. knowledge of the staff 4. Being kept informed of progress 5. The way service kept its promises 6. The way the service handled any problem Friendliness of staff 7. How sympathetic staff were to your needs 8. Speed of enquiries 9. Number of time had to contact the service.

ADVANTAGES OF CUSTOMER SATISFACTION

Up-to-date feedback: Gather current customer feedback on various aspects of your company. You can stay on top of customer trends through regularly scheduled online surveys or email surveys, and receive instant customer feedback. It is always useful to acquire insight into how your customers are currently reacting to all aspects of your business.

Benchmark results: You can administer the same survey every so often to customers to gain continued insight into your customers. Surveys can have the same questions, which will allow you to compare data over time and benchmark survey data across previous years to determine if any changes need to be made. Show that you care: Customers like to be asked for their feedback. It gives the customer the perception that your company values them; is committed to keeping them as a long-term customer; and bases business decisions on their feedback.

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DISADVANTAGES OF CUSTOMER SATISFACTION

Too many surveys, so little time: Your customers are bombarded with online surveys. Surveys may be simple to complete, however, some people simply don‘t like to complete them. Sending surveys too often can irritate customers and lead to customer burnout. Customer burnout can result in low response rates or result in lower satisfaction scores, despite your reputation for providing excellent products or services.

Privacy Issues: We live in a high-tech environment filled with daily doses of unwanted junk email, email solicitations, and sales calls. When taking an online survey or a phone survey (or any type of survey), it is hard for your customers to believe that they aren‘t being tracked. Because of insecurities of releasing private information, customers today are hesitant in giving out information that may lead to more junk email and unwanted calls. Make certain to assure customers that the information they provide in response to your customer satisfaction surveys will not be used. Without this disclaimer, it may be difficult to receive a good response rat

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The Indian two-wheeler contributes the largest volume amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub- segments viz. scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooters and step-thru. The market primarily comprises five players in the two-wheelers segment with the most of the companies having foreign collaboration with well-known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in India. and growth anticipated is higher than the 16 percent achieved in the past 10 years

The automobiles sector is divided into four segments-two wheelers(mopeds, scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multi-purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers (passenger carriers and good carriers).

The industry is one of the key drivers of economic growth of the nation. Since the globalization of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route, Indian automobile sector has come a long way. Today, almost every global auto major has set up facilities in the country.

The world standings for the Indian automobile sector, as per the Confederation of Indian Industry, are as follows:  Largest three-wheeler market  Second largest tow-wheeler market  Tenth largest passenger car market  Fourth largest tractor market  Fifth largest commercial vehicle market  Fifth largest bus and truck segment

The sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with a 10 percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow rural income growth. Solid but cautious growth is expected over the next few years. However, from a long-term perspective, rising incomes, improved affordability and untapped markets present promising opportunities for automobile manufactures in India. According to Macquarie equities research, sale of passenger vehicles is expected to double in the next four years

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Two Wheeler & its role in Indian Context As the cities grow & suburbs expand, transportation needs becoming more & more acute, with mounting pressure on its public transportation for which two wheelers are ideal.

The two-wheeler Industry today has a significant role in the Indian economy, with an annual turnover of Rs. 9000 crores and compounded average growth of 10%. In recent years, it is of the few industrial sectors in the growth phase today considers personal transportation as one of the basic needs.

The two-wheeler industry basically comprises mopeds, scooters, scooters and motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups, offering company. This category dominated by TVS SUZUKI, which has a market share of 50% today. The other major players in this segment include KINETIC ENGG., HERO MOTORS and BAJAJ AUTO.

Scooters, which found largest segment in the industry (37 percent) is dominated by BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and technology to the Indian customers. However, dominance of this category has been declining because of shift in the customer preferences.

Major part of the growth in the two-wheeler industry has come from motorcycle especially, the Indo-Japanese 100cc motorcycles, which are considered, fuel efficient, reliable and suited for rough roads.

Scooters also growing at a fast phase and are being increasingly perceived as a better option providing convenience and motor style, by urban customers. In this category, TVS Scooty holds a dominant market share.

With sales of over three million vehicles, India is the second largest two-wheeler market in the world. Vehicle has become a necessity for day-to-day busy life, with the accelerated industrial and business activity in a liberalized environment. However, given the limited purchasing power and to high cost of cars, majority of the middle class vehicle users prefer two wheelers.

With sales of over million vehicles, India is the second largest two-wheelers market in the world. China is the market leader with around 51 percent of the Asia Market, India,

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Thailand; Indonesia & Taiwan are the other key markets for two-wheelers with market share of 19 percent, 10 percent, 9 percent and 5 percent respectively.

In the last four to five years, the two-wheeler market has witnessed a market shift towards motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to 25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro emission norms effective from April 2000 led to the existing players in the two-stroke segment to install catalytic converters. 4-stroke motorcycles are now replacing all the new models. Excise duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has aided in propelling the demand for motorcycles. Fierce competition has also forced players to cut prices of certain models.

Competition has intensified over the last couple of years altering the dynamics in the motorcycle segment with various companies planning to cash in on this spurt in demand by calling off their JVs like Suzuki Motors planning to break off with TVS. Recently, Honda Corporation of Japan announced its intentions to set up a 100% subsidiary to manufacture scooters and motorcycles. Other players in the two-wheeler industry include Bajaj Auto Ltd., Kinetic Motor Co.Ltd. LML and Escorts Yamaha. Low interest regime has helped in reducing cost of loans, which will help in boosting sales of 2-wheelers, since 80% of the two- wheelers are credit –stimulated.

The two-wheeler industry is passing through a critical but interesting phase. For many years, it was growing continuously but the turning point came in 1996=97 when it started slowing down. The impact was really (MI) felt in the next year when the overall growth was hardly two percent. This was also possible only because the motorcycle segment showed a healthy growth of 15 percent. The scooter segment went down by 3 percent and mopeds by 6 percent.

Another highlight is that the motorcycle sales have surpassedthe scooter sales for the first time in 1998-99. Until then, motorcycle sales were always trailing behind.

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The net result is that motorcycles now account for 41 percent of the two-wheeler market, while scooters account for 36 percent. Mopeds have been able to hold their own at about 21 percent.

Growth of Motorcycles It is therefore not surprising that every major player is trying to get into the Motorcycle market to have a piece of the cake.

Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by Bajaj with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13 percent. Now LML and Kinetic have announced their plans to manufacture motorcycles, which are likely to come in the market by next year. The battle is expected to be fierce but the consumer will be the greater beneficiary.

The growth in motorcycles is slowly losing its hold. It is considered a family vehicle but perhaps there is competition from the second hand car markets where prices have fallen down rapidly. A1992 Maruti 800 is now available for just 70,000.

The scooter manufactures have to watch this phenomenon and bring our many new product variants in the right price slots to sustain their shares in the market. The moped market has been steady with an average growth of 3 percent. It is dominated by TVS which holds 48 percent market share followed by Kinetic and Majestic Auto at 23 percent and 18 percent respectively.

In each segment, there is a wide gap between the first two contenders, which makes their products positioning and marketing strategies most interesting. The two wheelers market seems to be maturing. There are the usual their conventional segment of scooters, mopeds and motorcycles. Two new segments are being created.

NewSegmentsA Step is through segment like Kinetic K4-100, Honda Street, Bajaj

M-80, which is quite close to the motorcycle segment. The other segment is scooterettes or mini scooters in which vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj Sunny/Sprite/Safire and LML trendy can be considered. These are vehicles under 75 cc and largely targeted at the youth market such as college students, young boys and girls and new

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A Study On Customer Satisfaction On Hero Moto Crop couples. They get the advantage of lower excise duty at 16 percent as compared to 24 percent applicable over 75 cc. The trend is towards push button start vehicles.

Among the majors in the two-wheeler industry, first quarter figure for the current year of some players has been encouraging. The company sold 313,303 units last month as compared to 325,360 units in the same month last year. With this, BAL has recorded as 87 percent growth in the motorcycle segment in the first quarter with sales of 130,577 units (93,631 units in the corresponding period last year) BAL estimates market share of the first quarter-Geared scooters 75.9%, unguarded scooters- 16.5%, Step-thrus-72.3% and motorcycle-20.5%.

In the scooters segment, sales of Bajaj Sunny and Bajaj Spirit increased by 170 percent to 7,876 units. First quarter sales registered an impressive 78 percent growth with sales of 19,562 (10,995 units). The overall sales grew by 9.3 percent in the quarter when the company sold 3.24 lakh vehicles.

BAL however reported a decline in sales of scooters by 15.6 percent in the first quarter. The company hopes to increase the share of motorcycle in its product basket from 18 percent last year to 30 percent by 2003-04.

Hero MotoCorp Ltd enjoys tremendous brand equity in the motorcycle segment.

Kinetic Motors, another important player, managed to grow in 1999-2000, when the scooters segments a whole slipped by around 5 percent. TVS Suzuki, a motor two-wheeler market, has reported a growth of 13 percent in the first quarter period and sold 2.19 lakh units. Sales of motorcycles and scooters were up by 18 percent and that of mopeds by 8 percent over the same period last year.

The current year therefore promises to be a testing time for the two-wheeler industry. Industry pundits feel that an overall growth rate of 5 percent should be possible as against 9 percent projected earlier. The sales volume therefore is expected to be around 3.8 million in 2000-2001.

Dramatic Changes Hero MotoCorpis now world‘s largest manufacturer of two-wheelers. The company has benefited from the demand shift to motorcycles, as it focuses solely on this product

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A Study On Customer Satisfaction On Hero Moto Crop segment (although has a product called Pleasure in Scooter segment). With fuel efficiency and riding comfort as the main selling points, HMC has been able to address a wide market and post robust sales growth even after its separation from the Japanese major Honda.

The coming years will see increasing competition due to the parity in products and price. The only differentiators will be technology, quality, product range and service. Imaginative marketing will emphasize relationship building, customersatisfaction and relationship. All is exploring new techniques such as direct marketing and institutional sales. Some of them are taking the vehicle actually to the customer‘s doorstep. Now the customer is the kingHistorical Development of Two Wheeler IndustryIndia is the second largest manufacturer and producer of two-wheelers in the world. It stands next to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons as if respective policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc., In Indian two-wheeler, industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers.In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971.In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter segment. Although various Government and Private enterprises entered the fray for scooters, the only new player that has lasted until today is LML.Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The motorcycles segment was no different, with only three manufacturers via Enfield, Ideal Jaw and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment.

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A Study On Customer Satisfaction On Hero Moto Crop power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90‘s the major growth for motorcycle segment was brought inby Japanese motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years.

The industry had a smooth ride in the 50‘s, 60‘s and70‘s when the government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80‘s. The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicles in 1990.

The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women towards buying scooters, who were earlier inclined towards moped purchases. In line with this, the scooter segment has consistently lost its part of the market share in the two~whee1er market.

In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in1992, resulting in the production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.

The reasons for recession in the sector were the incessant rise in fuel price, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors as if increased production in 1992, due to new entrants coupled with the recession in the industry resulted in either company reporting losses or fail in profits.India is one of the very few countries manufacturing three wheelers in the world. It is the world‘s largest manufacturer and seller of three wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%; Bajaj Tempo, Greaves Ltd and Scooters in India share the rest.

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The total number of registered two-wheelers and three-wheelers on road in India, as on March 1998 was 27.9nm and 1 .7nin respectively. The two-wheeler population has almost doubled in 1996 from a base of 12.6mn in 1990.

Penetration of Two-Wheelers On a base of around 28mn vehicles on Indian roads and around 175mn households, there were only 160 motorized two-wheelers per thousand households in FY98. This compares poorly with countries like Thailand where it is around 600 per thousand households. Also with a household size of 5.5 persons and more than one wage earner in about 60% of the households, the potential for a second vehicle demand is also good.

The number of households in the low-income group has fallen since FY86 and has been more pronounced in the post-reform period. On the other hand, the number of households in the middle, upper middle and high-income groups that form the consumer base for twowheelers, have increased. Their share of the total number of households has increased from 10.6% in FY88 to 20.5% inFY96. This rising income profile however, has, been more pronounced in the urban areas as average annual growth in industry surpassed that of agriculture in the period FY93 satisfaction and relationship. All is exploring new techniques such as direct marketing and institutional sales. Some of them are taking the vehicle actually to the customer‘s doorstep. Now the customer is the king.

Historical Development of Two Wheeler Industry India is the second largest manufacturer and producer of two-wheelers in the world. It stands next to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons as if respective policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc.,

In Indian two-wheeler, industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers.

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A Study On Customer Satisfaction On Hero Moto Crop

In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971.

In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter segment. Although various Government and Private enterprises entered the fray for scooters, the only new player that has lasted until today is LML.

Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years.

The motorcycles segment was no different, with only three manufacturers via Enfield, Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle segment.

The two-wheeler market was opened to foreign competition in the mid 80‘s. And then the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke bikes (100cc category), gaining a top slot.

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A Study On Customer Satisfaction On Hero Moto Crop with this, the scooter segment has consistently lost its part of the market share in the two~whee1er market.

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A Study On Customer Satisfaction On Hero Moto Crop

COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.

HeroMotoCorp is now world‘s largest manufacturer of two-wheelers. The company has benefited from the demand shift to motorcycles, as it focuses solely on this product segment (although has a product called Pleasure in Scooter segment). With fuel efficiency and riding comfort as the main selling points, HMC has been able to address a wide market and post robust sales growth even after its separation from the Japanese major Honda.

Vision The story began with a simple vision – the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company‘s new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company‘s footprint in the global arena.

Mission Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners.

Strategy Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder delight. NEW HORIZON COLLEGE Page 24

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Manufacturing Hero MotoCorp two wheelers are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant are based at Haridwar, in the hill state of Uttrakhand.

Technology In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Its plants use world class equipment and processes and have become a benchmark in leanness and productivity.

Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and develop cutting edge products and processes

Distribution The Company's growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the country.

Supply Chain Management As the Company prepares to produce a wider range of products, efforts are being taken to align the supply chain and prime up its supplier base. During the year, the Company kick-started the process of migrating its existing brands to the new brand. The exercise is expected to be completed during 2012-13. During the year, the Company also commenced the process of working with its vendors to develop new parts. The Company‘s Supply Chain Management function is built on three planks:

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A Study On Customer Satisfaction On Hero Moto Crop

Sustainability

Tracking inventory cost effectively and efficiently is known to be a key source of competitive advantage in the automobile industry. Hence, it comes as no surprise that cost leadership is the Company‘s prime focus area. Continual pressure on margins forced the Company and its supply chain partners to find innovative and alternate ways to combat inflation. Considerable attention was given to managing component inventory in the system, with double-digit growth in inventory turnover. To align HR processes with the supply chain, top two HR consulting firms in India are working with supply chain partners. The exercise is aimed at improving robustness of people processes and resulting in a direct impact on quality, cost, productivity, delivery and reliability. The move will enable supply chain partners move to the next orbit of operational excellence. The Company initiated more than 30 quality improvement projects with supply chain partners to provide better quality products to customers.

Brand The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation

Corporate Governance At Hero MotoCorp, it is the firm‘s belief that the essence of Corporate Governance lies in the phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the shareholders. The Chairman and Directors are ''Your'' fiduciaries and trustees. Their objective is to take the business forward in such a way that it maximizes ''Your'' long-term value.

This Company is committed to benchmarking itself with global standards for providing good Corporate Governance. It has put in place an effective Corporate Governance System which ensures that the provisions of Clause 49 of the Listing Agreement are duly complied with.

The Board has also evolved and adopted a Code of Conduct based on the principles of Good Corporate Governance and best management practices being followed globally. NEW HORIZON COLLEGE Page 26

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 Headquarter and Branches

Corporate & Registered Office

Hero MotoCorp Ltd. 34, Community Centre, BasantLok, VasantVihar, New Delhi - 110057, India. Tel: +91-11-26142451, 26144121 Fax: +91-11-26143321, 26143198

Zonal Offices East Zone Hero Motor Corp Ltd 3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India. Tel: +91-33-22810926 22810927, 22808922, 22811185 Fax: +91-33-22808923 Email: [email protected]

West Zone Hero Motor Corp Ltd. 15-A, Bale Estate, Rear Wing, Third Floor, Pune-Mumbai Road, Wakadewali, Pune - 411 003, India. Tel: +91-20-25511577, 25512161, 56012990-91 Fax: +91-20-25511266 Email: [email protected]

North Zone Hero Motor Corp Ltd. F-126, KatwariaSarai, Opp. Qutab Institutional Area, New Delhi -110016, India. Tel: +91-11-26533981-2, 47619300 Fax: +91-11-26533983 Email: [email protected]

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South Zone Hero MotoCorp Ltd. No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage, Indira Nagar, Bangalore – 560038, India. Tel: +91-80-25550430, 25584436, 25582436, 25321139 Fax: +91-80-25594036 Email: [email protected]

Grading Positives Market leadership, strong brand equity, professional management, high operating efficiency and established scale economies. Strong financial profile characterized by healthy margins, high profitability and cash generation. Potential upsides to our estimates: (1) HMCL sustains its current market share, leveraging its brand equity, product performance and distribution strengths; (2) industry growth exceeds our estimates over the medium term despite existing concerns on macro-economic scenario; (3) HMCL betters the margins estimated by us via sustained business growth and increases in operating efficiency even in the face of competitive and cost pressures.

Grading Sensitivities Key sensitivities to our estimates include: 1. Inflation in input costs not being neutralized by price increases because of competitive pressures; 2. High concentration on Executive segment; 3. Intensifying competition from global players; 4. Ability to develop in-house technical capability or form alternate technical tie-ups with external institutions. Company History - Hero Moto Corp

1983 - Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed - Shareholders Agreement signed 1984 - Hero Honda Motors Ltd. Incorporated NEW HORIZON COLLEGE Page 28

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1985 - First motorcycle "CD 100" rolled out 1987 - 100,000th motorcycle produced1989New motorcycle model - "Sleek" introduced 1991 - New motorcycle model - "CD 100 SS" introduced - 500,000th motorcycle produced 1992 - Raman MunjalVidyaMandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 - New motorcycle model - "Splendor" introduced - 1,000,000th motorcycle produced 1997 - New motorcycle model - "Street" introduced - Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated 1998 - 2,000,000th motorcycle prod1999 - New motorcycle model - "CBZ" introduced - Environment Management System of Dharuhera Plant certified with ISO- 14001 by DNV Holland - Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal 2000 - 4,000,000th motorcycle produced - Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland - Splendor declared 'World No. 1' - largest selling single two-wheeler model - "Hero Honda Passport Programme" - CRM Programme launched 2001 - New motorcycle model - "Passion" introduced - One million production in one single year

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- New motorcycle model - "Joy" introduced - 5,000,000th motorcycle produced 2002 - New motorcycle model - "Dawn" introduced - New motorcycle model - "Ambition" introduced - Appointed VirenderSehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 - Becomes the first Indian Company to cross the cumulative 7 million sales mark - Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) - New motorcycle model - "CD Dawn" introduced - New motorcycle model - "Splendor +" introduced - New motorcycle model - "Karizma" introduced2004 - New motorcycle model - "Ambition 135" introduced - Hero Honda became the World No. 1 Company for the third consecutive year. - Crossed sales of over 2 million units in a single year, a global record. - Splendor - World's largest selling motorcycle crossed the 5 million mark - New motorcycle model - "CBZ*" introduced - Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 - Hero is the World No. 1 for the 4th year in a row - New motorcycle model - "Super Splendor" introduced - New motorcycle model - "CD Deluxe" introduced - New motorcycle model - "Glamour" introduced - New motorcycle model - "Achiever" introduced - First Scooter model from Hero Honda - "Pleasure" introduced 2006 - Hero is the World No. 1 for the 5th year in a row - 15 million production milestone achieved 2007

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- Hero is the World No. 1 for the 6th year in a row - New 'Splendor NXG' launched - New 'CD Deluxe' launched - New 'Passion Plus' launched - New motorcycle model 'Hunk' launched - 20 million production milestone achieved

2008 - HeroHaridwar Plant inauguration - New 'Pleasure' launched - Splendor NXG lauched with power start feature - New motorcycle model 'Passion Pro' launched - New 'CBZ Xtreme' launched - 25 million production milestone achieved - CD Deluxe lauched with power start feature - New 'Glamour' launched - New 'Glamour Fi' launched 2009

Hero GoodLife Program launched Hunk' (Limited Edition) launched

- Splendor completed 11 million production landmark - New motorcycle model 'Karizma - ZMR' launched - Silver jubilee celebrations 2010 - New model Splendor Pro launched - Launch of new Super Splendor and New Hunk 2011 - New licensing arrangement signed between Hero and Honda (Hero Honda is renamed as Hero) - Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme, Karizma - Crosses the landmark figure of 5 million cumulative sales in a single year

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2012 - 45% market share in the domestic two-wheeler market - 56% market share in the domestic motorcycle market - Declared a dividend of 2,250% in 2011-12, i.e. 45 per equity share of the face value of 2 per share

Awards & Recognitions on 2011 Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike Awards. CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new corporate entity" by CNBC Awaaz Consumer Awards "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero Good Life "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing Award of Asia Order of Merit for Hero Good Life Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand" 2011 serve

New motorcycle model - "Passion Plus" introduced

Portfolio of Products Hero MotoCorp offers wide range of two wheeler products that include motorcycles and scooters, and has set the industry standards across all the market segments.

100ccBike category SPLENDOR PLUS SPLENDOR NXG SPLENDOR PRO PASSION PRO PASSION XPRO

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MAESTRO PLEASURE HF DAWN HF DELUXE

125ccBike category GLAMOUR SUPER SPLENDOR IGNITOR Glamour PGM FI

150ccBike category ACHIEVER KARIZMA KARIZMA ZMR IMPULSE HUNK XTREME

Termination of Honda Joint Venture

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

The Japanese auto major will exit the joint venture through a series of off market transactions by giving the Munjal family—that held a 26% stake in the company—an additional 26%. Honda, which also has an independent fully owned two wheeler subsidiary— Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at a discount and get

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A Study On Customer Satisfaction On Hero Moto Crop over $1 billion for its stake. The discount will be between 30% and 50% to the current value of Honda's stake as per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family, led by BrijmohanLalMunjal group, will form an overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV would eventually be thrown open for private equity participation and those in the fray include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.

Environment Policy We at Hero MotoCorp have been committed to demonstrate excellence in our environmental performance on a continuous basis, as an intrinsic element of our corporate philosophy To achieve this we commit ourselves to: Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals and strengthening 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). Institutionalize resource conservation in the areas of oil, water, electrical energy, paints and chemicals.

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Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management

Safety Policy We believe that safe work practices lead to better business performance, motivated workforce and higher productivity. We shall create a safety culture in the organization by: Integrating safety and health matters in all our activities. Promoting safety and health awareness amongst employees, suppliers and contractors. Continuous improvements in safety performance through precautions be sides participation and training of employees. Ensuring compliance with all applicable legislative requirements. Empowering employees to ensure safety in their respective work

Directors

Founder Director and Chairman : Dr. BrijmohanLallMunjal

Managing Director and CEO : Mr. PawanMunjal .

Board of Directors

Name of the Person Nature of the Office Mr. Sunil Kant Munjal Non-Executive Director Mr. Suman Kant Munjal Director Mr. Paul Edgerley Non-Executive Director Mr. PradeepDinodia Director Gen. (Retd.) V. P. Malik Director Mr. Analjit Singh Director Dr. Pritam Singh Director Mr. M. Damodaran Director Mr. Ravinath Director Dr. AnandC.Burman Director

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Dr. BrijmohanLallMunjal Mr. Munjal is the founder Director and Chairman of the Company and the $3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). In recognition of his contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government

Sales Figures

OEM F12 F11 Growth (%) 1 Hero Moto Corp 6235205 5402444 15.41 2 Bajaj 3834405 3387043 13.21 3 TVS 2158375 2006808 7.55 4 Honda (scooters) 1240771 907832 36.67 Honda (Motorcycle) 866457 748895 15.70 Hero – HMSI 2107228 1656727 27.19 5 Yamaha 484891 373100 29.96 6 Suzuki 340893 282156 20.82 7 Mahindra 134750 163935 -17.80 Source: - www.motorbeam.com

Profile of Target Customer Hero MotoCorp basically targets the every each and segments of the market. So there are some products like splendor, CD- dawn (rs40000-50000) they made for lower segment of the market and glamour, passion, CBZ, karizma (rs above 50000) for the upper segment of the market. And now they are trying to target the young people of the market.

India‘s Hero MotoCorp, the world‘s largest producer of motorcycles and scooters, has announced its intention to expand globally, with plans to sell vehicles on three continents and nearly double its unit sales within five years. The company, whose family shareholders bought out its former partner Honda Motor this year, said it would invest about $1bn to expand internationally in south-east Asia, Africa, and Central and Latin America.

Customer Relationship Activity

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For making a better relationship with customer they always use genuine parts in their product. And after selling they have the services and maintenances. Their constant endeavor is to support the company's mandate of providing highest level of customer satisfaction by taking good care of customer‘s two-wheeler service and maintenance through their vast network of more than 2100 committed dealers and service outlets spread across the country.

Apart from that hero motocorp focused on cleanliness and other aesthetics of the service stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance the in house experience of the customers at those ―customer touch point‖. To ensure that millions of customers in the rural area are not left waiting for adequate service as it is impossible for the company to introduce service station at every nook and corner of the country, mobile service stations are regularly arranged with prior intimation to public about the rout that the mobile workshop would take when passing through that region so that customers can come and get their two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus retaining customers.

Good life: Customer Loyalty Program Good Life is a Customer Relationship Program introduced a decade ago, which Endeavour‘s to enhance customer satisfaction and initiate increased levels of member engagement.

The main objective of this Program is to make our customers our Brand Ambassadors to generate referral sales and boost service visits.

The Good Life Program has enabled the Company build a consolidated base of 10 million plus loyal customers; in the process, a new distribution platform has emerged. GoodLife now contributes a huge 14% to the Company‘s overall sales (purely through referrals), in addition to incremental sales. GoodLife has emerged as the largest Customer Relationship Program in India, witnessing additions of 0.38 million members each month. During the year, the Program‘s member base shot up 16%, with new 4.51 million transactions being undertaken.

Besides aiming to increase the number of customers and volume of transactions, the Program seeks to enhance revenue opportunities for dealers as well. Different levels of engagement have been in-built into the Program with the aim of increasing its people

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A Study On Customer Satisfaction On Hero Moto Crop engagement initiatives. Some of these are: transaction-based rewards, exclusive eventinvites, personal accidental insurance, servicecontinuity bonus, transaction benefits on special occasions (birthdays, anniversaries), quarterlynewsletters and interaction through a programwebsite.

The Program began with a member transaction booklet, a replica of the Passport Booklet, which helps in engaging with customers. However, the Program has been e-enabled now to improve its geographical reach and efficiency level. It runs on the backbone of a robust and engaging front-end and a sound, solid and technical back-end. The Program includes customized technology, combining a mix of Magnetic Swipe/Bar Code. Personalized Membership Cards are shared with GoodLife members, which are easy to carry, transact and earn/redeem rewards. Online member profiling and real-time customer feedback module (via questionnaires) are some more salient features of the Program. During the year, GoodLife has been the recipient of several accolades and awards on national and international platforms. Some of these were:

‗Order of Merit‘ in PMAA awards 2011 under ‗Best Activity Generating Short or Long Term Brand Loyalty‘ category Colloquy Award under Innovation in Loyalty Marketing (International) category Qualified as ECHO Finalist (5th place) in 2011 DMA International ECHO™ Awards competition Loyalty Award under Auto Sector

Operation Ramp-Up With demand for bikes recording a stupendous growth of 15% during the year under review, the Company‘s capacities were severely strained. This prompted it to augment its capacity at its three plants – up from 5.4 million units to 6.35 million – during the year. This was made possible through a number of de-bottlenecking measures. For example, the Company‘s plants were made leaner by outsourcing non-critical processes and operations.

Besides this, a number of structural changes and alterations were made in its manufacturing strategy to effectively implement its Sales Plan for 2012-13.

Major replacements were also executed in the paint and assembly shop, ensuring little or no shutdown along the assembly line. Apart from the above measures, several innovative technologies were inculcated to reduce operational costs. Some examples of these are:

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A breakthrough technology for gear rolling was implemented for mass-production Fine blanking, an alternate process of hobbling, was introduced for sprocket components Advanced cam grinding was introduced to increase productivity and control costs

The Company‘s oldest plant at Dharuhera was in the limelight for two specific

reasons:

Wage negotiations were concluded Plant won TPM Excellence Award

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SWOT ANALYSIS

Strengths

1. Huge brand equity and one of the biggest players in the two wheelers Indian market 2. Excellent R&D and wide variety of products in every segment. 3. Excellent distribution, over 3000 dealerships and service centers 4. Good advertising and excellent rebranding from Hero Honda to Hero Moto Corp

Weaknesses

1. Absence in the premium bike segment 2.High imports for its spare parts i.e. over 30% imports 3. Most of the products have similar features and low on design and innovation

Opportunities

1.Two-wheeler segment is one of the most growing industries 2.Export of bikes is limited i.e. untapped international markets

Threats

1. Strong competition from Indian as well as international brands 2. Dependence on government policies and rising fuel prices 3. Better public transport will affect two-wheeler sales

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STATEMENT OF THE PROBLEM

This Project has been titled ―A comprehensive study Post purchase buyer behavior and satisfaction towards Hero Motors Bikes after the split with Honda."

To study the new market of Hero motors after the split with Honda, the consumer response to the bike and needed improvement aria

The study would help to understand the consumer satisfaction to their expectation.

OBJECTIVES

This study was conducted keeping the following objectives in mind. To study the factors which influence the purchase of Hero two-wheelers? 1. To know the customer level of awareness of Hero two-wheelers. 2. To know the various factors, which influence customers in purchasing, they‘re two - wheelers? 3. 1To find the after sales service offered by Hero MotoCorp Ltd. 4. To know the customer level of satisfaction of Hero two-wheelers with respect to Hero MotoCorp Ltd. 5. To find the profile of Hero MotoCorp Ltd two-wheeler customers. 6. To understand two wheeler sector in India. 7. How the split with Honda has affected Hero motors. 8. To study overall financial performance of Hero company 9. To study its life cycle initial stage growth and maturity 10. To focus on comparative study of different products of Hero company Different range of products, their success and failure 11. To find out the effectiveness of customer relationship management in the hero company

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RESEARCH METHODOLOGY

Methodology

The information required for this study obtained was basically through two sources.

Primary Data:

Primary Data has been gathered by a survey through a structured questionnaire.

The Data has been collected from 100 customers, through questionnaires, by using simple random sampling. In addition interaction with the staff of Hero MotoCorp Ltd has also given some information.

Secondary Data:

Secondary Data comprises of information obtained from annual reports, brochures, manuals websites etc.

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NEED FOR THE STUDY

Marketing starts with identifying the needs of customers and ends in satisfying those wants. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction based on their preferences retaining them.

Without customer, no market exists. As the customers are regarded as the superiors in today‘s market, the level of satisfaction and their preferences should be keenly studied.

The two-wheeler industry has been expanding rapidly. Gone are the days when possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity.

Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles.

Not only this, this industry has also customers ranging from all demographic segments. It has been common sights that even school going children are driving two- wheelers. The women customers are also increasing due to increase in women literacy and employment.

Getting a new customer is difficult, than retaining a current customer is a more difficult one and not only that it is estimated that the cost of attracting a new customer is five times the cost of retaining current customer. It requires a great deal of effort to induce satisfied customer to switch away from their current preference. Thus, customer satisfaction is been given top priority in today‘s competitive world.

Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the customer‘s satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a detailed study of customer preferences, levels of satisfaction and their complaints and suggestions was undertaken.

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SCOPE OF THE STUDY

This study helps the organizations to increase their service and product quality and in turn increase the market share, top and bottom line of the company.

The Sample Size is Limited, So as to give the accurate information regarding Customer Satisfaction. The scope is very limited, because attitude & expectations of the people change according to the time & situation. The study is restricted to both (twin cities) Hyderabad and Secunderabad and that to among 100 respondents. The study is conducted only for 60 days. Consistency was lacking with regard to the information given by few customers. The study is restricted to the certain area, so it could not give whole picture about Andhra Pradesh or India.

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REVIEW OF LITERATURE

Customer Satisfaction

Defining customer value & satisfaction. Over 38 years ago, Peter Dhuker observed that a company‘s first task is ―To create customers‖ However, customers face a vast array of products and brand choices, price & suppliers. How do they make their choices?

We believe that our customers estimate which offer will deliver the most value. Customer are value maximizes within the bounds rich costs & limited knowledge, whether or not the offer lives up to value expectation affects both satisfaction and repurchase probability.

Customer Perceived Value:

Our premise is that customer will buy from the firm that they see as offering the highest perceived value. Customer perceived value (CPV) is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering & the perceived alternatives. Total customer value is the perceived monetary value of the bundle of economic, functional & psychological benefits customers expect from a given market offering.

Total customers cost is the bundle of costs customers expect to incur in evaluating, obtaining, using & disposing of the given market offering.

Total Customer Satisfaction Whether the buyer is satisfied after the purchase depends on the offer‘s performance in relation to the buyer‘s expectations. In, general satisfaction is a person‘s feeling of pleasure or disappointment resulting from compiling a product‘s perceived performance (or outcome) in relation to his or her expectations. If the performance falls short of expectations, performance matches the expectations, the customer is satisfied. If the performance exceeds expectations, the customer is highly satisfied or delighted

The link between customer satisfaction and customer loyalty is not proportional. Suppose customer satisfaction is rated on a scale from one to five. At a very low level of customer satisfaction (level one), customers are likely to abandon the company and even bad mouth it. At levels two to four, customers are fairly satisfied but still find it easy to switch when a better offer comes along. At level five, the customer is very likely to repurchase NEW HORIZON COLLEGE Page 45

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&even spread good word or delight creators an emotional bond with the brand or company not just a rational preference.

Measuring satisfaction although the customer centered firm seek to create high customer satisfaction, that is not its main goal. If the company increases customer satisfaction by lowering its price or increasing its service, the result may be lower profits.

The company may be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes or investing more in R&D) Also, the company has many stake holders including employers, dealers, suppliers, & stock holder. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of their ―Partners‖. Ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources.

Attracting Customers Today customers are becoming harder to please. They are smarter, more price conscious, more demanding, less forgiving, & they are approached by many more competitors with equal or better offers. The challenge, according to Jeffery Gitomer is not to produce statistical customers; several competitors can do this. The challenge is to produce delighted & loyal customers.

Companies seeking to expand their profits & sales have to spend considerable time and resources searching for new customer. To generate leads, the company develops ads & places them in media that will reach new prospects, it sends direct mail & makes phone calls to possible new prospects; its sales people participate in made shows where they might find new leads; & so on. All this activity produces a list of suspects.

To motivate its employees to serve the customers well, it displays the following poster prominently around its office.

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Who is a Customer?

A customer is the most important person ever in this office……. In personal by mail.

A customer is not dependent on us…….. We are dependent on him

A customer is not an interruption at our work ……. He is the purpose of it.

We are not doing a favor by serving him …….. he is doing a favor by giving us the opportunity to do so.

A customer is not someone to argue. Or match wins with. Nobody ever won an argument with the customer.

A customer is a person who brings us his wants. It is our job to handle them profitably & to ourselves.

Forming Strong Customer Bonds: The Basics

Companies that want to form strong customer bonds need to attend to the following basics.

Get cross-departmental participation in planning and managing the customer satisfaction and retention process.

Integrate the voice of the customers in all business decisions.

Create superior products, services, and experiences for the target market.

Organize & make accessible a database of information on individual customer needs, preferences, contacts, purchase frequency & satisfaction.

Make it easy for customer to reach appropriate company personnel and express their needs perceptions and complaints.

Tools for tracking & measuring customer satisfaction:

Complaint & Suggestion Systems

A customer-centered organization makes it easy for customer to register suggestion and complaints. Some customer-centered companies- P&G, General Electric, and Whirlpool-

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A Study On Customer Satisfaction On Hero Moto Crop establish hotlines with toll free numbers. Companies are also using web & E-mail for quick, two- way communication.

Customer Satisfaction Surveys Studies show that although customers are dissatisfied with one out of every four purchases, less than 5% will complain, most customers will buy test or switch suppliers. Responsive companies measure customer satisfaction directly by conducting periodic surveys while collecting C.S data, it is also useful to ask additional questions to measure repurchase intention & to measure the likelihood or willingness to recommend the company and brand to others.

Host Shopping Companies can hire people to pose as potential buyers to report on strong & weak points experienced in buying the company‘s & competitor products. These shoppers can even test how the companies‘ sales person handles various situations. Managers themselves should leave their offices from time to time, entire company and competitors sales situations where they are unknown, & experience first hand treatment they receive. A variant of this is for managers to phone their own company with questions & complaints to see company with questions & complaints to see how the calls are handled.

Lost Customer Analysis Companies should contact customers who have switched to another supplier to learn why this happened. Not only this, it is also important to conduct exit interviews when customers first stop buying, it is also necessary to monitor the customer lost rate.

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DETERMINANTS OF CUSTOMER DELIVERED VALUE

Customer delivered value

Total Customer Total Customer Value Cost

Product Value Monetary Cost

Service Value Time Cost

Personnel Value Energy Cost

Image Value Psychic Cost

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LIMITATIONS

I have observed the following limitations in the course of my study. 1. The areas which were selected were limited only to Bangalore i.e., the findings are regional and do not represent the state or country. 2. Time constraints hampered the study. 3. Since the study involved in gathering information was from upper to higher-middle class people, interaction with them became difficult. 4. There may be respondent‘s bias. 5. Even though utmost care has been taken in conducting the survey, the findings may sometimes differ from the population. 6. The study is conducted of academic nature 7. The split happened 4 year before, the study not giving the long run result of Hero Motors Bikes

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Table- 4.1Showing type of Hero two wheeler models owned

How many people are owned two wheelers of hero?

No. Name of Hero two No. of%

1 SPLENDORwheeler PLUS respondents25 2 SPLENDOR PRO 10 3 PASSION PRO 30

4 HUNK 2 5 GLAMOUR 3

6 KARIZMA ZMR 2 7 KARIZMA 1 8 MAESTRO 3 9 SUPER SPLENDOR 2 10 SPLENDOR NXG 5 11 PLEASURE 6 12 HF DAWN 1 13 PASSION XPRO 8 14 DUET 2 15 IMPULSE 1 Total 100

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IMPULSE 1% HF DAWN 1% PASSION XPRO SPLENDOR 9% NXG SPLENDOR 5% PLEASURE PLUS 6% 25% SUPER SPLENDOR 2% MAESTRO 3%

KARIZMA 1% SPLENDOR PRO 10% KARIZMA ZMR 2%

GLAMOUR 3% HUNK 2% PASSION PRO 30%

Table- 4.1Showing type of Hero two wheeler models owned

Inference:-From the above table it is inferred that, 30% of respondents held Passion Pro and 25% of respondents held Splendor Plus, Splendor Pro 10%, and Passion Xpro 9%. The remaining two wheelers are very less in %. The table is inferred that some of the models are very less in market. This formed the basis of the study.Chart 4.1Showing type of Hero two wheeler models owned in %

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4.2 showing thesource of information about HeroHow the people will prefer to buy the two wheelers? While seeing

Sources No. Of Respondents

Newspaper ads 9

Television ads 57

Roadside Boarding‘s 14

Others 20

Total 100

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Chart 4.2 showing the source of information about Hero

News paper ads Television ads Roadside Boarding’s others

9% 20%

14%

57%

Inference:

From the above table it is inferred that people are getting information about hero two wheelers from television ads, more than 50% of people are watching TV ads. Roadside Boarding &news paper are less in performance; other sources contain motor shows, internet ads.

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Table- 4.3 showing the influenced people for buying Hero

How the people influence before buying a two wheeler?

Influenced People No. Of Respondents

Family 34

Own 16

35 Friend

15 Sales representative

Total 100

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Chart 4.3 showing the number people influenced for buying

40 34 35 35 30 25 20 16 15 15 10 5 0 family Own friend Sales representative

Inference: -

From the above table it is observed that, the buying behavior people mostly influenced by family and friends the other factor is have less level of influence. The people how using bike mostly youth & middle class people and they are influenced by their friends and family respectively. The above table showing that 35% of people influenced by their friends 34% people through family 16% people is buying on their need. 15% because of sales representative

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Table- 4.4 showingthe preference of capacity &color

How the people shows preference on capacity(cc) &colour?

Capacity No. of Respondents Preference of Color No. of Respondents

100cc 17 Blue 23

125cc 28 Red 24

150cc 35 Black 39

200cc 20 Other 14

Total 100 Total 100

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Chart 4.4(1) showing the preference of capacity

40 35

30 28 20 20 17

0 100 cc 125cc 150cc 200cc

Chart 4.4(2) showing the preference of color

50 39 40

30 23 24 20 14 10 0 Blue Red Black Other

Inference: -

From the above table it is observed that, the bike ‗cc‘ preference is deferent customer to customer but the 35% people like 150cc bike and 28% like 125cc, 200cc bike 20% others 100cc.e preference of color ‗BLACK‘ is rating at near to 40% of people after that 24% like Red color 23% Blue also . Other color like white gettingless importance in selection

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Table- 4.5 showing the responses on Vehicle delivery time

How the people responses on a delivery time?

Respondents No. Of Respondents

Yes (on time) 78

No (not on time) 22

Total 100

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Chart 4.5 showing the responses on Vehicle delivery time

showing on time Vehicle delivery Yes No

22%

78%

Inference: -

From the above table it is observed that,

78% of respondents got delivery of their vehicle on time 22% says that the delivery of vehicle got delay After enquire about the 22% it‘s showing that they asked for very demand vehicle like PASSION &SPLENDOR bikes and some of them ask new bike like Maestro and duet

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Table- 4.6 showingavailability test drive during on showroom visit

When the people visits showroom the company will offer test drive to customer are not?

Respondents No. of respondents

Yes 92

No 8

Total 100

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Chart 4.6 showing availability test drive during on showroom visit

Availability test drive during on showroom visit

Yes No

92%

Inference: -

From the above table it is observed that, 92% of respondents got test drive during their showroom visit, other 8% didn‘t got because of two reason some of them ask the bike that not showcase in showrooms and some of them gone small showrooms

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Table- 4.7showing the reliability of Vehicle

How the people showing the realiability of vehicle?

Respondents No. of respondents

Excellent 16

Good 23

Moderate 21

Satisfactory 39

Unsatisfactory 1

Total 100

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Chart 4.7 showing the reliability of Vehicl

45 39 40

30 Excellent Good 25 23 21 Moderate 20 16 Satisfactory 15 unsatisfactory 10

5 1 0

Inference:

The above table shows how the customer rate the reliability of Hero bike, it is observed that 16% of them telling its excellent 23% respond that its good and 21% have moderate opinion 39% is satisfied with the performance and 1 of the respondent is not satisfied with the Hero bike.

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Table- 4.8 showing level of Service Satisfaction

How the company does the service to the customers?

Respondents No. of respondents

Completely Satisfied 34

Satisfied 39

Dissatisfied 12

Not At All Satisfied 15

Total 100

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Chart 4.8 showing level of Service Satisfaction

39 40 34 35 Completely satisfied

30 satisfied 25

20 15 dissatisfied 15 12 Not at all satisfied 10

Inference:-

The above table shows the satisfaction towards Hero bike on the time of Service 34% of respondents are completely satisfied with the service provide by the company and 39% customers are satisfied and 12% dissatisfied, 15% is not at all satisfied with the service provide by the company the following chart shows it more clearly

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Table- 4.9 showing the brand name influence in purchase

How the people showing the brand name when purchase?

Respondents No. of respondents Percentage

Yes 74 74%

NO 26 26%

Total 100 100%

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Chart 4.9 showing the brand name influence in purchase

No 26%

Yes 74%

Inference:-

From the above table it is observed that, the customers are influenced by the brand name ―HERO MOTOCROP‖ 74% of respondents are influence by the brand name and 26% are not the brand ―HERO‖ is the most selling bike in India and Its is the brand that selling more bike in the world also

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Table- 4.10showing the reason for preference

Why does the people shows preference to buy hero two wheelers?

Preference No. Of Respondents Percentage

Quality 25 25%

Price 20 20%

Brand Image 24 24%

Fuel efficiency 31 31%

TOTAL 100 100%

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35 31 30 25 24 25 20 20

0 Quality Price Brand ImageFuel efficiency

Chart 4.10 showing the reason for preference

Interpretation:

From the above table we can infer that 25% of the respondents gave preference to quality, 20% of respondents gave preference to price, 24% of respondents gave preference to brand image and 31% of the respondents gave preference to fuel efficiency.

From the above findings, we can analyze that 69% of respondents were more quality conscious and only 31% respondents gave preference to price and fuel efficiency.

The reasons are even though people are price conscious to some extent; the consumers are more quality conscious than price conscious because they have enough income to buy two-wheeler.

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Table - 4.11 showing how long customer using hero two wheeler

How much time period does the customer drive the hero two wheelers?

Time period No. Of Respondents

Less than 6 month 24

6-9 month 23

9 -1 year 32

More than 1 year 21

TOTAL 100

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Chart 4.11 showing how long customer using hero two wheelers

0 5 10 15 20 25 30 35

More than 1 year 9 -1 year 6-9 month Less than 6 month

Inference:-

From the above table we can infer that how long the customer holds the bike the split between Hero and Honda happen less than 3 year back and this table help to know the using period of customer 79% of people that in the research is brought their bike in the last year and 21% is using the bike more than 1 year

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Table - 4.12 showing the area thatCustomer demanding toimprove in service

How the customersdemand to improve in service?

Area No. Of Respondents in %

Service in time 31

Reliable service 16

Well trained mechanics 27

less labor charge 26

TOTAL 100

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Chart 4.12 showing the area that Customer demanding to improve in servic

Chart Title 35 31 30 27 26 25 Service in time 20 16 Reliable service 15 Well trained mechanics 10 less labor charge 5 0 Category 1

Inference:-

From the above table it is observed that, what is customer need that Hero wants to improve, 31% need improvement in service in time, 16% in reliable service, and 27% need well trained mechanics, 26% less labor charge.

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Table - 4.13 showing theproblems face at the time of service

How the people face the problems at the time of service?

No. Of Respondents in Responses %

High price spare parts 29

Low quality of spare parts 14

Delay in service 29

No problems 28

TOTAL 100

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Chart 4.13 showing the problems face at the time of service

Problems face at the time of service

High price No problems spare parts 28% 29%

Low quality of Delay in service spare parts 29% 14%

Inference:

From the above table it is observed that, the customers are facing deferent problems at the time of service, 29% face high price of spare parts, 14% face low quality of spare parts, 29% face delay in service, 28% respondents they didn‘t face any problem

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Table - 4.14 showing therating of Service Performance of Hero Motors

How the company showing their performance of Hero Motors at the time of service?

Response NO. OF RESPONDENTS PERCENTAGE

Very good 34 34%

Good 20 20%

Average 32 32%

Bad 8 8%

Very Bad 6 6%

TOTAL 100 100%

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Chart 4.14 showing the rating of Service Performance of Hero Motors

How is the service performance of hero motors?

Chart Title 40

35 34 32 30

25 Very good 20 Good 20 Average 15 Bad Very Bad 10 8 6 5

0 Response

Inference:-

From the above table it is observed that, 34% of customer says service performance gives by Hero MotoCorp Ltd, Is very good and 20% says it‘s good , 32% says the service is average,8 respondents says the service is bad and 6% says it‘s very bad, To overall we can conclude that more than 85% is satisfied with the service provide by Hero MotoCorp Ltd.

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A Study On Customer Satisfaction On Hero Moto Crop

FINDINGS

1. The Hero MotoCorp is leading the market. The difference is too big to cope up with, for any manufacturer in short span. With proven products and many people having faith in brand, it is quite a difficult task for others to take the Hero‘s number one position. 2. Hero MotoCorp India‘s no. 1 two wheeler companieshave posted growth of 11.28% in the month of May 2015 compared to May 2014. 3. Ability to understand customer‘s needs and wants, maintenance cost is low. 4. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number 5. The TV promotions are more influence the customer behavior of two wheeler sector. 6. The purchase desiccations of consumers are influence by friends and family. 7. Blue, Red, Black color bike with 150 cc to 200cc is fast moving. 8. Most of the despondences are agree that the bikes are delivering proper time. 9. The service provide by Hero MotoCorp is satisfied by more than 70% of customers. 10. Brand name of Hero is still good in market after split with Honda, 74% of people like the brand ―HERO" 11. Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction 12. The research showing that consumer want to get more service satisfaction. 13. 82% of the customer likes to recommend Hero two wheeler to their friends, its shows they are satisfied with the bike.

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A Study On Customer Satisfaction On Hero Moto Crop

SUGGESTIONS

It is very hard to hold the pulse of a customer in the market. Customer‘s satisfaction is different for different people at different situations;

Majority of the respondents were still unaware about different versions of Hero bikes. Therefore I suggest the company personals should take initiative to create awareness about these versions. Few of the customers expressed concern over frequency of the maintenance & service problems faced by their vehicle and expressed ‗high satisfaction‘ over it. Therefore, I suggest them to re look at the vehicle & re-develop in order to stop the frequency of these problems. more importance in there service part its include timely service, and quality of service Hero want to develop more promotion for there some models like sports bike and gear less scooter Hero bikes want to increase their export market Hero MotoCorp Ltd should try to give more advertisements in news paper, bill boards in that area to enable easy recall of the people for Hero MotoCorp Ltd.

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A Study On Customer Satisfaction On Hero Moto Crop

CONCLUSION

Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers.

Apart from that hero MotoCorp Ltd focused on cleanliness and other aesthetics of the service stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance the in house experience of the customers at those ―customer touch point‖. To ensure that millions of customers in the rural area are not left waiting for adequate service as it is impossible for the company to introduce service station at every nook and corner of the country, mobile service stations are regularly arranged with prior intimation to public about the rout that the mobile workshop would take when passing through that region so that customers can come and get their two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus retaining customers.

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A Study On Customer Satisfaction On Hero Moto Crop

BIBLIOGRAPHY

Books

1. Philip kotler, Marketing Management Himalaya Publishers 2008 edition

2. Yp Singh ,Effective MarketingManagement Vision publishing house 2012 edition

3. Dr .agarwal, Business Statistics Himalaya publishers 2010edition

4. Dr. Appanaiah. Essentials of Marketing Management Himalaya Publishing

House2012 edition

Web Links:

www.heromotocrop.com www.iamai.in www.wikipedia.com

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A Study On Customer Satisfaction On Hero Moto Crop

QUESTIONNAIRE

Dear Sir, madam I am P HARISH KUMAR BBM 6th semester studentof NEW HORIZON COLLEGE, undertaking a project title A STUDY ON CUSTOMER SATISFACTION ON HERO MOTO CROP PVT.LTD I will be grateful to your if you could spare your precious time for answering the questionnaire I promise you the information collected here will be confidential and it is strictly used for academic purpose only.

QUESTIONNAIRE

1. Name: 2. Gender: 3. Age: 4. Contact no:

Q1. How is the information collected about hero? A] Newspaper B] Television Ad C] Road side boarding‘sD] Others Q2.How the people influenced for buying Hero

A] Family B] MyselfC] FriendD]Sales representative

Q3.showingthe preference of capacity

A] 100cc B] 125cc C] 150ccD] 200cc

Q4. Company showing responses on Vehicle delivery time

A] On timeB] Not on time

Q5] On the Whole did you get your money worth?

A] Yes B] May be C] No

Q6] what do you feel about advertising strategy of hero?

A] Motivating B] Informative C] Makes no difference

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A Study On Customer Satisfaction On Hero Moto Crop

Q7What was your mode of purchase?

A] Installment purchase B]Spot cash C]EMI

Q8] What is your opinion on Hero Moto crop?

A]Affordable B]Competitive C]Highly Competitive

Q9] Would you recommend Hero Moto Crop to others?

A] Yes B] No

If No please specify…………………………..

Q10] Is the show room attractive?

A] Yes B] No

Q11] Do you find the display of all the latest versions of Hero Motors?

A]Yes B] No

Q12 When the people visits showroom the company will offer test drive to customer is not

A] Yes B] No

Q13] How is the service performance of Hero Motors?

A] Very good B]Good C] Average D] Bad

Q14] how the customers demand to improve in service?

A] Reliable B]well trained mechanics C] Less labor charge

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