Marketing Strategies of Hero Honda

SUMMER PROJECT

“MARKETING STRATEGIES OF

HERO HONDA”

Efforts By – Dhruv Verma F – 28 A3906410099 ASB

Amity School of Business Amity University ACKNOWLEDGEMENT I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making of the report. I am grateful to all of them for their time, energy and wisdom.

Getting a project ready requires the work and effort of many people. I would like all those who have contributed in completing this project. First of all, I would like to send my sincere thanks to Mr. Vivek Ahuja for his helpful hand in the completion of my project.

Dhruv Verma

2 EXECUTIVE SUMMARY

The study, which I conducted on the “In-depth Analysis of Hero Honda Motors Ltd” in the area of Marketing & Human Resource Management has been a very gratifying experience at the outset, the objectives were to cover the whole marketing strategies and Human Resource policies adopted by HHML. The entire report has been effort to do just that.

Through out the study I found Hero Honda bikes are very new & use modern technology in their bikes. As a result they give better performance then other bikes in the market & required less maintenance. Hero Honda also provides good after sale service to the customer.

Hero Honda has managed to put in spectacular performance going from strength to strength despite increase in competition, the company’s sales have witnessed an up trend, registering an average growth of 42% in the three years under review.

Hero Honda has managed to achieve this because of its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong brand “Splendor” the company’s presence across the spectrum of the motorcycle market helped it exploit the growing demand for 4-stroke motorcycles. In view of the increasing competition due to globalization and the expansion of the economy .All industries need to constantly add more attributes and features which consumer wants in two wheelers of their company .In context company had to adopt more innovative and consumer friendly attributes so that there product should be more popular among the customers.

Today in this present world the Marketing Strategy of Hero Honda in two wheeler segment of India and are leading as the world number one two wheeler company from the past three consecutive years.

3 The research assigned to was to study the parameter ore the features that effect most of the customer satisfaction in the Hero Honda motors limited & BAJAJ Automobiles .There are many features which effect the two wheeler company but important among all of them are the following :- (1) Fuel efficiency (2) Maintenance (3) Availability of the product (4) Resale value (5) Look and style (6) Image and brand

4 TABLE OF CONTENTS

Chapter No. Topic 1. INTRODUCTION • About The Industry • Products

2. RESEARCH METHODOLOGY • Research Objective • Research Design • Data Sources • Primary Data • Secondary Data • Questionnaire Design/Formulation • Sample Design • Limitation of the Research

3. COMPANY PROFILE • History of Hero Honda comp. • S.W.O.T Analysis

4. DATA ANALYSIS 5. FINDINGS / CONCLUSION 6. RECOMMENDATIONS 7. ANNEXURE • QUESTIONNAIRE 8. BIBLIOGRAPHY

5 6 INTRODUCTION

The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler market. The other players including Kinetic Engineering, LML and others account for the remaining 20 percent of the market. The industry can be divided into three broad segments: Scooters, motorcycles and mopeds. In the scooters segment Bajaj is the market leader, Hero Honda is the market leader in the motorcycles segment and in the segment of mopeds, TVS controls the major chunk of the market.

Most Indian players in the two-wheeler industry had been into some kind of strategic alliance, technical collaboration or joint venture with foreign players, mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal- promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors (till September 2006); Bajaj-Kawasaki a joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor Corp. (till June 2007).

Indian automobile market, be it the two-wheeler segment, the three-wheeler segment or the car segment, is yet to come to a stage where all the models are developed indigenously. For years now, Indian companies have been dependent on their foreign joint venture partners or collaborators to provide them with the technical know-how. This trend too is in for a change. Leading the pack in this arena is Bajaj, which has been Successful at designing models in-house. Bajaj's Safire and Spirit, have been able to bag the scooter of the year award for 2006 and 2007 respectively. In fact, its Spirit was adjudged the "Indigenous product design of the year" for the year 2000. The recently launched Pulsar from the Bajaj stable is yet another home-grown product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been laying increased emphasis on its R&D so as to be able to launch new products to tap the markets at all possible price points. Other companies too are adapting the strategy of designing and developing products indigenously.

7 TVS's Victor is yet another development in this direction and this indigenously built model has been a success in the markets.

ABOUT THE INDUSTRY Their operations cover spectrum of consumer and industrial application including motorcycles, mopeds, automotive components and industrial supplies. In each of these areas Hero is a pioneer and a leader. Hero Cycles Ltd. is in the Guineas Book of World Records as the world’s largest bicycle manufacturer. Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle. Hero-PACER, PANTHER and ANKUR produced by majestic auto Ltd. are among the most popular mopeds in the country.

Other companies in the HERO galaxy are Gujarat Cycles Ltd.: Indian’s most advanced bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier of the stock industries: brand leader in shafts and hubs; Highway Cycle industries: manufacturing free wheels and Sunbeam Castings: making precision non-ferrous castings.

Modern technologies for systems have transformed the profile of HERO. Yet the formula for success is unchanged –A drive for quality and economy. A commitment to ancillary development and uncompromising attention to the common man’s need

8 HERO GROUP

BUSINESS HERO CYCLES HERO CYCLES GUJARAT LIMITED LIMITED (UNIT II) CYCLES LIMITED Bicycles Established in 1956 Established in Established in in Ludhiana 1988 in Sahibabad 1988 in Baroda Product : Bicycles Product: Bicycles Product : Bicycles

BUSINESS HERO HONDA MAJESTIC AUTO HERO MOTORS MOTORS LIMITED LIMITED (A DIVISION OF MAJESTIC AUTO LIMITED)

Auto-Two Established in 1983 New Established in Established in Wheelers Delhi 1978 Ludhiana 1988 Ghaziabad Product: motorcycles Product : mopeds Product: mini collaborator: Honda & fitness motorcycles motor co. Ltd., Japan equipment Collaborator: steyr daimler punch, austria product: scooters, collaborators: Malguti, Italy.

BUSINESS ROCKMAN CYCLE HIGHWAY CYCLE MUNJAL SHOWA INDUSTRIES INDUSTRIES LIMITED LIMITED LIMITED

Established in 1960 Established in 1971 Bicycle and Ludhiana Ludhiana Product: Established in 1985 Auto Product: Freewheels & Gurgaon Product : Components Automotive & Special Machine Stock Absorbers Bicycle Chains; Tools Collaborator: Showa

9 Steel & Aluminum Manufacturing Co. Hubs. Japan

BUSINESS MANJAL SUNBEAM HERO CYCLES- CASTINGS CASTINGS COLD ROLLING DIVISION

Castings and Established in 1981 Established in 1987 Established in 1990 steel Ludhiana Gurgaon Product : Ludhiana Product : Product : Non- Non- ferrous Cold Rolled Steel ferrous Castings Castings Sheets and Coils

BUSINESS HERO EXPORTS HERO MANJAL SALES CORPORATE CORPORATION SERVICES

Services Established in 1993 Established in 1995 Established in 1975 Ludhiana New Delhi Product: Ludhiana Product: Product : Corporate Service in Sole Selling Agents International Finance, HDR, IT & of Bicycles and Trading Company Strategic Planning Bicycles Parts for dealing in India. Commodities’ & Engineering Items

10 HISTORY

The Honda motor company was incorporated in 1948. Since its inception, Honda has become the large Japanese industrial concern among those companies incorporated after World War II. It has also been established itself as the world’s Largest manufacturer of the motorcycles, commanding 25% of the motorcycle market and nearly 50% of the Japanese market.

Today Honda is acknowledged as the undisputed leader in the motorcycle technology. Recognized the world over as a pioneer, the Honda name is guarantee of the technological and the manufacturing excellence of any product. Honda5s other areas of product excellence include Automobiles and Power products (Lawn Movers, generators and Outboard motors.)

Honda motor company has 83 overseas production facilities in 35 countries looked after by 93000 strong force. In 1995 its consolidated sales amounted over Rs. 140000 crores.

CHAIRMAN PROFILE

Profile of Chairman of Hero Honda Ltd. Mr. Brijmohan Lal, Chairman of Hero Group of Companies, is a first generation entrepreneur of 1950’s. After partition Mr. Munjal along with his brothers started the business of bicycle components manufacturing in a humble way at Ludhiana at a time when the country was beset with bottlenecks of industrial infrastructure and investments. In his 50 years of career as an entrepreneur, Mr. Lal has a trail of successes, but his demeanor is unbelievably warm and loving. At this pinnacle of accomplishment, he is accessible, forthcoming and friendly- be it with workers, professionals, business associates or government officials.

Born on July 1, 1923, Mr. Brijmohan Lal advocates corporate governance and ethical and value-driven management practices. He has been successful in

11 steering the business with innovative ideas. He continuously provides group companies foresight, advice in their business strategies.

Today, the group produces 5 million bicycles and I million two-wheelers annually. It has a committed workforce of over 15000. The group companies have been honored with best industrial governance and safety awards under Mr. Munjal’s Chairmanship. Besides managing a large organization, Mr. Lal spends consideration energy, time and resources to strive for social upliftment of communities and villages around the factories. He has set up various medical, educational facilities and infrastructure, actively leads national business associations and also adds value as Board members of Reserve Bank of India.

Mr. Brijmohan Lal Munjal and his brothers have nurtured the family by training younger generation members into a distinct culture, which is unique in providing quality management and enterprise to Indian industry.

REWARDS AND RECOGNITION ⇒ Mr. Munjal has received several prestigious awards in his illustrious career over 50 years: ⇒ Mr. Brijmohan Lal Munjal received the “Business Man of the Year” award by the Business Indian Group of publications for the year 1994. ⇒ Mr. Munjal was also presented the “National Award for outstanding contribution to the development of Indian Small Scale Industry” by the President of India in the year 1995. ⇒ He had also received the most admired “CEO” award from Business Baron for the year 1999. ⇒ He was also awarded the “Honorary Membership of the Indian Institution of Industrial Engineering” in 1992. ⇒ Mr. Munjal was awarded the “Indians of the Century award” by Times of India in 2000. ⇒ The “XLRI” Institute (Jamshedpur) has conferred on him with the Honor of “Sir Jahangir Ghandy Medal for Industrial Peace” in 2000.

12 ⇒ Mr. Brijmohan Lal Munjal is also the president of “Dayanand Medical College and Hospital at Ludhiana. ⇒ Mr. Brijmohan Lal has also been the member of many important industrials and business delegations led by Prime Ministers and other ministers to project the image of the country and also make others aware of the business opportunities in India.

13 PRODUCTS A Product is something of value that is offered for sale or hire with the aim of satisfying customer needs. It is a bundle of satisfaction that the customer buys. A product may be a tangible offer to the market, which includes product quality, variety, design, features, branding etc. It may also be intangible such as provision of a service like training or education etc. Many products may have tangible as well as intangible attributes. For example Daewoo Cielo car is the tangible product and after sale services and mobile repair anywhere is an intangible service.

PRODUCT LINE A product line refers to a group of product clubbed together because they have one of the above described characteristics in common. The number of product lines carried by a firm at a given point in time is a function of its resources and competitive position.

PRODUCT WIDTH This refers to the number of different product lines marketed by a firm.

PRODUCT DEPTH This refers to the numbers of product items and their variations (like size, packaging, colors, etc) offered in each product line.

PRODUCT CONSISTENCY This is the degree of similarity between product line in end use, technology and production techniques, distribution channel etc.

The ideal product mix is an issue that varies from firm to firm and may be hard to define and come by.

14 POSITIONING OF THE PRODUCT Positioning concerns what is in the minds of consumers, in particular in the minds of your target group(s) of consumers. It is what the consumers think of the product or the firm or there perception of the product offerings of a firm.

It is about the position your firm, the product, and the brand occupy in the minds of particular group of consumers, the attributes they associate with your product, and they have concerning the product. Positioning is something that goes on in the consumers mind.

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

Branding is a way of labeling your particular product offering to distinguish it from other competitors product offering.

TYPES OF BRAND NAMES

One name Many different names

Umbrella Family Range Separate corporate Umbrella names individual brand Name names names

15 PRODUCT DESCRIPTON (HERO HONDA LTD.) Hero Honda has launched the following motorbikes in the Indian market. ⇒ Hero Honda CD 100 ⇒ Hero Honda CD 100 SS ⇒ Honda Sleek ⇒ Hero Honda Splendor ⇒ Hero Honda Street Smart ⇒ Hero Honda CBZ ⇒ Hero Honda joy ⇒ Hero Honda passion ⇒ Hero Honda Ambition ⇒ Hero Honda Karizma ⇒ Hero Honda Dawn ⇒ A brief description of these bikes is as follows:

16 PRODUCT AND SERVICES

HERO HONDA CD 100 CD 100 The original “Fill it, Shut it, Forget it” bike is India’s first 4-stroke bike and is still the India’s foremost. It is an economical and reliable bike which has the ability to go on and on, year after year. The CD100 4-stroke engine is derived from Honda’s tough economic series range of engine, which makes it, fuel-efficient. The bike is economical and easy to maintain with optimal oil circulation of 50ml, for every 1000 kilometers. It has separate oil circulation in the engine. Hence no possibilities of carbon deposits on piston rings, spark plug and no silence to worry about.

CD 100 is an improved, easy to ride bike, with illuminated speedometer with a color- marked “economy zone” indicating cruising range. The bike has a 97.2 cc, 7.2 hp at 8000- rpm engine. It has an electronic ignition and it weighs at 107 kg (kerb weight). It gives the maximum speed of SO kilometer per hour. CD 100 comes in a four speed constant mesh – all foot shift gears.

The bike is priced at Rs. 37000(ex-showroom Delhi) and at Rs 36000 (ex showroom Mumbai. CD 100 is available in four colors candy Ruby red, Black, Amazing Blue metallic and sierra green metallic). The bike confirms to the year 2000 Euro emission norms.

17 HERO HONDA CD 100 SS The CD 100 SS is a bike that is meant to take on the toughest riding condition, while continuing to enjoy the legendary fuel economy. The CD 100 SS adds a new dimension of strength to Hero Honda’s world famous four- stroke technology. The bike has a 97.2 cc, 7.2 hp at 8000 rpm. It has a large ground clearance of 165 mm and it weights at 112kg(kerb weight).

The CD 100 SS has wider tires, to grip the road in any condition giving it improved cornering stability and safety. The bike has large reinforced shock absorbers, to soak up bumps on unkind roads, to protect the bike and to give the ride more comfort. CD 100 SS also has an engine guard, to protect and engine from the assault of sand, mud and stones, therefore giving it improved performance. The bike comes with a transmission of 4-speed, constant mesh, all feat shift gear and it has an electronic ignition. The CD 100SS has a fuel tank capacity of 10.1 liters (including 2.8 liters reserve). CD 100SS is priced at Rs. 39,000(ex-showroom Delhi) and at Rs. 37,000 (ex-showroom Mumbai). The bike is available in the following colors (Candy Ruby Red, Black, Amazing Blue Metallic, Sierra Green Metallic and Classy Maroon Metallic).

18 HERO HONDA SLEEK Hero Honda Sleek is a 97.2 CC1, 4-stroke, single cylinder, air-cooled bike, that comes with a Electronic Ignition. The bike has a Multi-plate wet clutch and it comes with a transmission of 4-speed constant mesh, all foot shift gears. It has a Backbone frame type. The Sleek has a maximum power of 7.0 hp2 @ 8000 rpm and it gives a maximum speed of 85 Kilometers per hour. The bike has a ground clearance of 165 mm. And It has a dry weight of 100 Kilograms. The Sleek has a fuel tank capacity of 10.3 liters (including 1.4 liters reserve).

19 HERO HONDA SPLENDOR

Hero Honda Splendor the world’s largest selling motor bike is a 4-stroke, 100cc driving machine. It has smashing good looks and gives excellent performance. The bike’s new engine gives unprecedented fuel efficiency. It has a well-cushioned Long-slung seat that helps the rider to rest and ride at the same time. Splendor has very good suspension, which works so well, that one may never be able to find out what happens between the tires and the bumpy roads. Splendor is a bike that met the pollution control standards of 1990’s.

Splendor comes with a transmission of 4-speed Constant Mesh all foot shift gears. It has an Electronic Ignition and it weight at 90 Kilograms (Kerb weight). The bike has a maximum power of 7.5 Ps at 8000 rpm and it gives a maximum speed of 85 kilometer per hour. The Splendor has a tabular double crable type frame. The bike has a wheel base of 1230 mm and a ground clearance of 159 mm.

Hero Honda Splendor is priced at approximately RS 41,000 (ex-showroom Delhi) and at RS 39,000 (ex-showroom Mumbai). The Splendor is available in the following colors (Black, Candy Ruby Red, Blaze Blue silver Metallic, Sierra Green Metallic and Hi Granite Blue Metallic). The Splendor conforms to the year 2000 Euro emission norms.

20 HERO HONDA STREET SMART

Hero Honda Street Smart is a 4-stroke; 100cc bike which delivers great pick- up, the bike is reasonably priced. The Street Smart comes with trendy front shield, which makes it sturdier safer and smarter. The bike has Rotary gears and Auto-Clutch, which makes it amazingly maneuverable. It has a storage box, which makes it easy to carry bags, lunch boxes etc. The Street Smart also has an automatic decompression, which makes it easy to start. The bike also comes in a self-start model, which helps to reduce load on the battery and enhances its life. It’s a sheer convenience for riding. The Street Smart has Electronic ignition and a background tubular type Frame. It has a ground clearance of 133mm and it comes with a transmission 4-speed constant Mesh all feat shift gears. Street Smart has a wheel base of 1205 mm.

Hero Honda Street Smart is priced at approximately Rs 32,000 (ex-showroom Delhi) and Rs 36,000 (ex-showroom Mumbai). It is available in the following colours (Candy Ruby Red, Black, Sierra Green Metallic and Purple Metallic).

21 HERO HONDA CBZ Hero Honda CBZ is a bike that is equipped with five gears and 156.8 CC engines which generates 12.8 Ps power. The bike reaches from 0 to 60 kilometers per hour in just 5 seconds effortlessly touches the top speed of 100 kilometers per hour. The CBZ also has the widest rear tyre, with a unique tread pattern that is not available on any Indian motorcycle. It also has a large 130-mm drum brakes, and also has an option of front disc brakes, which enhances its braking performance.

The CBZ also has the Transient Power Fuel Control (TPFC) system which helps in giving the bike quick acceleration. The bike also has the trip meter, which measures the distance traveled in a trip. It also has the dynamic vibration dampers incorporated in the handlebar, which ensures that the ride is smooth and easy. The air injection system in the CBZ injects fresh air in to the exhaust part. The unique trapezoidal headlights gives CBZ a stylish look and helps the Rider to see clearly in the darkest to nights. The CBZ also has a multi-lever lockable seat which provides storage space and doubles as an anti theft mechanism for GDI unit RR unit and the battery. The bike also incorporated the zero crank case evaporative emission, pollution control feature so advance, that it is seen for the first time in India.

The Hero Honda CBZ is priced at approximately RS 57,000. The bike is available in the following colors (Black, Tasmania Green, Tahitian Blue, Candy Sparkling silver and Candy Blazing Red).

22 HERO HONDA PASSION Engine 4-stroke, single cylinder air cooled OHC Displacement 97.2cc Maximum Power 7.5 Ps at 8000 rpm Gear Box 4 Speed constant mesh Clutch Multi-plate wet type Max. Speed 85 kmph Frame Tubular double cradle Suspension Front Telescopic Hydraulic fork Swing Rear Arm with 5 step adjustable hydraulic damper Tyre Size Front 2.75 x 18 x 4 PR Rear 3.00 x 18 – 3/6 PR Final Drive Roller Chain Battery 12 V- 2.5 AH Ignition Electronic CDI Starting Kick Starter Wheelbase 1235 mm Ground clearance 159 mm Length 1980 mm Width 720 mm Height 1060 mm Kerb weight 116 mm Fuel Tank Capacity 12.8 liters (Reserve 1.1 ltrs)

SPECIAL PHYSICAL FEATURES OF NEW BORN …PASSION PASSION is one of the classiest looking bike HERO HONDA Motors Ltd. has ever made. Truly going by the traditions of its Corporate Image … Leading The Way, HERO HONDA Motors Ltd. has designed & introduced a bike truly for the youth of the new century. It’s a feast for your eyes…

23 SOME OF THE PHYSICAL FEATURES THAT ARE DESIGNED IN BIKE … PASSION

HEAD LIGHT Trapezoidal head light with a multi-reflector lens in a well-designed visor gives the motorcycle a stylish look. The headlight also has a position lamp. It comes in handy* when you head light bulb is not working and can go a long way in providing that extra safety at night.

MUDGUARD – FRONT PORTION Enhances safety for the rider.

FUEL TANK Newly designed knee grip fuel tank has a capacity of 12.8 litres with a reserve of 1.1 litres.

STORAGE KIT A large lockable storage space for imported items.

THE ENGINE 4-stroke, 97.2 cc, single Cradle Tubular Frame’.

THE SIDE COWLING The integrated side cowl gives a stylish look to the motorcycle. The matching graphics gels very well with the overall sporty look of the motorcycle.

SHOCKERS The rear shocker can be adjusted according to the terrain and the ride is as comfortable on a village road as on a city highway.

24 SEAT A wide and comfortable seat makes for tireless riding. The seat is lockable – tool kit and important papers are safe under it. A helmet holder is also provided.

BACKLIGHT A new design taillight with multi reflector makes PASSON the first two wheeler to use multi reflectors.

25 HERO HONDA AMBITION

⇒ This 133cc engine gives you the lead. A mileage of 79 kmpl"makes sure you stay on the road. And the Regal Crest styling makes you feel kingly. ⇒ It's time to Move up in life. With Ambition, there's no looking back ⇒ The 133cc engine with an 11 bhp thrust. Ensured through AMI- Advanced Microprocessor Ignition system. ⇒

A superbly shaped 12.5-litre capacity fuel tank, along with mileage that ensures you comfortably cross many milestones! ⇒

The styling has a touch of royalty, and is topped with a Regal Crest.

26 HERO HONDA KARIZMA

The Karizma features a 223cc, 17PS power pack that accelerates you from 0- 60 in 3.8 seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it races away from the pack.

Digital ignition and a constant vacuum carburetor facilitate better control of ignition timing.

Priced at Rs. 89,220/- on road Mumbai the Karizma is available in seven attractive shades.

27 28 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problems. Following steps have to be taken to obtain a correct result. 1. Define Research problem clearly 2. Formulate Hypothesis 3. Develop Research design 4. Collect Data 5. Analysis of Data 6. Interpret and Report

These steps were not fully followed in this study as the research was not numerically inclined and was not based on primary data.

In this final project the topic is related to the Marketing Research and analysis. The study of my research is descriptive and is related to the motorcycle industry. This is the topic, which falls under market leadership, competition, strategies and other policies of motorcycle Industry.

As my study was more focused on the strategic position of the key players in the industry, the data was collected primarily through secondary source.

Though some dealers and showrooms were informally visited, and some information was collected through an unstructured interview.

29 METHODOLOGY USED 1. Research Design - The project was designed to be a Descriptive Research, because the study required an in depth. Look into the Motorcycle market, its structure and Status. 2. Data collection Method - The basis of this project is the information collected through Secondary data. In order to get the view of those related in this market, some dealers and showrooms were informally visited. 3. Data Source - All the information was primarily collected through Business Magazines, Newspaper cuttings, Internet sites.

The structure of this research was decided while keeping readers in mind. It is an attempt to put forward my study in easy and simple language.

30 RESEARCH DESIGN

TYPE OF RESEARCH: - DESCRIPTIVE RESEARCH Descriptive research includes Surveys and fact-finding enquiries of different kinds. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening.

DATA SOURCES There are two types of data.

PRIMARY DATA The data that is collected first hand by someone specifically for the purpose of facilitating the study is known as primary data. So in this research the data is collected from respondents through questionnaire.

SECONDARY DATA For the company information I had used secondary data like brochures, web site of the company etc.

The Method used by me is Survey Method as the research done is Descriptive Research.

RESEARCH INSTRUMENTS Selected instrument for Data Collection for Survey is Questionnaire.

31 QUESTIONNAIRE DESIGN/FORMULATION

Questionnaire: - A questionnaire consists of a set of questions presented to respondent for their answers. It can be Closed Ended or Open Ended

Open Ended: - Allows respondents to answer in their own words & are difficult to Interpret and Tabulate.

Close Ended: - Pre-specify all the possible answers & are easy to Interpret and Tabulate.

TYPES OF QUESTION INCLUDED :

DICHOTOMOUS QUESTIONS This has only two answers “Yes” or “No”.

MULTIPLE CHOICE QUESTION Where respondent is offered more than two choices.

IMPORTANCE SCALE A scale that rates the importance of some attribute.

RATING SCALE A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and “very inefficient” to “very efficient”

32 SAMPLE DESIGN

Who is to be surveyed? The marketing researcher must define the target population that will be sampled.

The sample Unit taken by me; General public of different age group, different gender and different profession

EXTENT:- ⇒ Where the survey should be carried out? ⇒ I have covered entire residential area of Delhi city for the survey

TIME FRAME:- ⇒ When the survey should be conducted? ⇒ I conducted my survey for 8weeks from 10th may to 10th july

SAMPLING FRAME:- ⇒ The source from which the sample is drawn

SAMPLING TECHNIQUE: - ⇒ How should the respondent be chosen? ⇒ In the Project sampling is done on basis of Probability sampling. Among the probability sampling design the sampling design chosen is stratified random sampling. ⇒ Because in this survey I had stratified the sample in different age group, different gender and different profession

SAMPLE SIZE/ POPULATION SIZE: - How many people should be surveyed? My sample size is 75

33 LIMITATIONS OF RESEARCH

The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior.

BIASES AND NON-COOPERATION OF THE RESPONDENTS

⇒ Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague enough to be ignored in Hero Honda Auto Mobile Com.

⇒ Most of the people in India take their policies in the period preceding March (for tax saving purposes) & so the response to initial contacts were not all encouraging and that has been the primary reason in the inability to quantify the results large enough so as to deduce any relevant outcomes.

34 COMPANY PROFILE – HERO HONDA MOTORS LIMITED Hero Honda Motors Limited was incorporated on 19th January 1984 as a result of joint venture collaboration between the world’s largest manufacturer of Motorcycles “Honda Motor Company of Japan” and the world’s largest manufacturer of bicycles “Hero Group”. The Honda Motor Company of Japan and the Hero group both contribute an equal 26% share in the equity, with the rest being with the public.

Hero Honda is today the largest 100-cc motorcycle selling company in the Indian market. Hero Honda motorcycles have become synonymous with economy and set standards in the Indian two-wheeler market for their fuel efficiency, low emission levels and better quality. All this along with the fact that the company’s products are designed for the Indian market and driving conditions gives it a distinct competitive edge.

Hero Honda Motors Limited launched its first motorbike “Hero Honda CD 100” in May 1985. After the launch of the first motorbike, it introduced the “Hero Honda CD 100 SS”, the “Street Smart”, “Hero Honda Splendor” and the “Hero Honda CBZ”, motorcycles in the Indian market.

Hero Honda has acquired around 43% market share in the Indian motorcycle market. The company has a wide network of dealers and service points with emphasis on customer care and service. The company has 360 dealers in India. Hero Honda is the only Two-wheeler Company, which has introduced automated workshops at all major dealership showrooms. The company has 220 automated workshops in India. In 1990-91, Hero Honda promoted a company- Hero Honda Fin lease, to provide lease finance to its customers.

Hero Honda was awarded the “Best Productivity” performance award by the National Productivity Council for the Automobile industry for the year 1990-91. The company also received the Economic Times “Harvard Business School Association of India” award against 200 strong contenders.

35 The company apart from being the market leader in the Indian motorcycle market also fulfills its obligation to the society. It operates a mobile dispensary van in the service of those living within 10-Kilometer radius from its plant. Hero Honda also conducts eye-camps each year also cataract operations on a charitable basis. The company has, also established the Raman Kant Foundation, a trust to work exclusively in the area of socio cultural and educational developments. Hero Honda Motors Limited under its Chairman “Brijmohan Lal Munjal” has made tremendous growth and expansion in the Indian two-wheeler market and has been successfully maintaining its position as the market leader over the years.

36 OVERVIEW GENERAL INFORMATION Registered and : 34, Community Centre Corporate Office Basant Lok, Vasant Vihar, New Delhi-110057 Tel:6142451 (9 lines,) 6144121 Fax:6143321, 614321, Gram: HONDABIKE Works : DHARUHERA PLANT GURGAON PLANT 69th Km. Stone Delhi- 37TH Km. Stone Delhi- Jaipur Highway Jaipur Highway Dharuhere-122100 Dist. Gurgaon-122001 Rewari (Haryana) Tel: Haryana 01283-42131-35 Fax: Tel:0124-372129-29 0128-42399 Fax: 0124-373141-42 Distance of Work International Airpot : 54 Kms. 22 Kms. Head Office : 60 Kms. 28 Kms. Area Total : 2,48,000 sq. mts. 2,83,360 sq. mts. Covered : 61,200 sq. mts. 24.7& 51,200 sq. 18.07% Technical & : Honda Motors Co. Ltd. Financial No.1 –1, 2 Chome Collaborators Minami – aoyama, Minato – Ku, Tokyo – 107, Japan Tel: 3-3423-111 Telex: J22678 HONDAMATR Fax: 3-3423-2442

37 THE ORGANISATION Hero Honda Motors Ltd. Unit II is located at 37th km stone from Delhi on Delhi- Jaipur highway at Gurgaon (Haryana), amidst clean industrial surroundings with wide open green areas and lawns.

The factory building itself is refreshingly different. The plant layout is so designed as to ensure maximum movement of men and material. Maximum attention is paid to the employee’s convenience and mobility. The emphasis on quality is apparent in the clean and congenial working environment in which the employees can put in their best.

Advanced integrated technology can be seen at work in every operation be it Press shop, Weld shop, Engine assembly, Frame assembly and final inspection. An outstanding feature is the most sophisticated and advanced Engine Plant for the manufacture of the engine components. Another highlight is the efficient water treatment plant. After treatment the water is pumped into artificial lakes used for horticulture.

As the modern and technology in the world would come to naught without the corresponding development of the human values and attributes. Hero Honda management has realized this need and have made a conscious effort to create unique work culture in the company. The culture has evolved through a unique synthesis of the Indian and Japanese styles of management.

EXPANSION PLANS AND FUTURE OUTLOOK Earlier, HHML has faced capacity constraints and lost significant market share to competitors during FY95 and FY96. With demand for motorcycles on the upward curve, the company commissioned a new plant at Gurgaon, with a capacity of 150,000 vehicles pa in FY97. Capacity at Dharuhera plant in Haryana has also been expanded from 300,000 vehicles to 350,000 vehicles during F.Y. 98. In the future too the company has indicated to invest in capital equipment and regularly introduced new models. The future outlook for the motorcycles segment looks positive with it capturing a larger share of the cake from scooters. With customers having become more discerning in terms of

38 features and aesthetics, their preference has shifted towards bikes. With adequate manufacturing capacities and a leading world player as its partner, HHML is well being intended entry of Honda in the two-wheeler market two year hence.

ANCILLARIES HHML has a strong network of ancillaries comprising inter alia, a number of Munjal group companies such as Munjal Castings, and Munjal Showa. Also there are dedicated vendors like Rico Auto. HHML has indigenous more than 95% of its components. In line with Honda philosophy, HHML source most of its component requirement from third party vendors. This allows greater flexibility in production planning. Materials cost is relatively high and overheads are lower.

SOCIAL CONTRIBUTIONS: Hero Honda, believe in a wholesome approach towards development in a large agrarian economy like India, by assimilating our rural sub systems to the main steam of development. By doing so we can rural income, generate employment and can profit basic amenities in the rural areas. In the process of procuring the ISO 14001 certification the company has implemented the environment management program which, inter alia, includes the training of 400 employees and codification of guidelines for the control of wastage of resources. The tree plantation plan of the company continues with the same vigor.

EXPORTS In continuation of its pursuit to increase its Export Base, Hero Honda Motors participated in SAARC & CII Trade Fair’s. The response of the product shown in the fairs was very encouraging & the company expects to clock higher exports sales during the current Financial Year. During the Year under review Guatemala, Chile & Costal Rica was added as new product & service markets.

39 MARKETING STRATEGIES

MARKETING Marketing is challenging and exciting. The solving of marketing problems required insight, experience and analytical ability. Take the case of a company faced with the problem of increasing its sales. Increase in the sales at the expense of profits may not be a desirable objective. Again there are many ways in which sales can be increased, e.g. by finding new customers or selling more to existing customers, by increasing advertising and by reducing the price. The marketing manger must decide which strategy or combination of methods he should adopt for increasing his sales profitably. He must also keep in touch with the changing needs and desires of the consuming public as well as his competitors’ activities. Thus marketing is interesting, as it required the marketing manger to be dynamic and not complacent for continuous prosperity of his organization.

THE MARKETING FUNCTION However the meaning of marketing is not often clear to people who use the word. To a salesman it means selling whereas to an advertising manger it means advertising. High-sounding definitions have also been advanced. For example, Paul Mazur defined it as “the delivery of a standard of living of society”. Thus was expanded by Prof. Malcolm McNair to “the creation and delivery of a standard of living.

“Marketing is the primary management function which organizes and directs the aggregate of business activities involved in converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final consumer or user so as to achieve the company-set or other objectives”.

40 RELEVANT MARKETING FORCES ⇒ Consumer habits. ⇒ Consumer attitudes and motivations. ⇒ Trade structures and practices. ⇒ Trade attitudes and motivation. ⇒ Types of competition. ⇒ Relation of supplies and price to demand. ⇒ Position and share of the market. ⇒ Trends of competitive behavior. ⇒ Government controls, which are applicable.

41 CD DAWN Presenting CD Dawn, the true-value 4 stroke, 100cc motorcycle from Hero Honda. A motorcycle that encompasses the legendary Hero Honda values of fuel-efficiency, economy and rock-solid dependability

TOUGH TRACK SUSPENSION The CD Dawn comes with a unique suspension that smoothens and absorbs bumps on unkind roads and provides you with continuous riding comfort.

DOUBLY STRONG TUBULAR FRAME Its double tubular-cradle frame by imparting extra stability to the motorcycle ensures an exceptionally stable ride.

This and other features - like the legendary Hero Honda mileage, the first-of- its-kind 2-year warranty in the category and a price that will make you smile, is what makes the new Hero Honda CD Dawn - Value Nayae Zamane Ki

PRODUCT STRATEGY Hero Honda shifted its focus from catering to the fuel efficient conscious consumer to try and occupy other segments of the motorbike market and therefore the new product launches from Hero Honda in the last three year have been in this direction. The company has also upgraded some of its bikes to stay in contention and to meet Euro emission norms. The new underlining theme for the company “One for everyone” has led to the launching of new products, which are as follows: 1) Street Smart: Hero Honda introduced its Street Smart in 1997. The company who were more inclined towards the scooters and who thought that the scooters were safer than the motorcycles, thus Hero Honda decided to launch the Street Smart. The bike was built in such a way that it resembled more like a scooter, than a motorcycle, but actually it is a motorbike i.e. it is a “hybrid” 2) CBZ: Hero Honda introduced the CBZ in 1999. The bike was launched as a result of the changing trends amongst the Indian customers from fuel

42 efficient bikes that were heavier, more powerful, trendy, stylish and sophisticated. This was done to cater to those customers who wanted to buy motorbikes for fun, thrill and great driving experience rather than being cost conscious. CBZ was also launched to acquire the market share from the heavy motorbike segments, as the company did not have any heavy motorbike. It was the first time that Hero Honda had made a shift from 100 cc bikes to a 156cc bike.

With the launch of these two motorbikes and various other motorbikes in the pipeline, Hero Honda’s strategy is to get into those segments of the motorcycle market where they have not made inroads earlier.

Hero Honda continues to have the strategy of parity pricing. They have neither taken the root of doing heavy discounting nor have they tried to occupy the premium position. However with the launch of CBZ the company is gradually getting into the area of premium positioning. The company keeps on making changes in the pricing of the bikes, whenever there is an increase in inputs.

43 PRICE Price is one of the important elements of the marketing mix, but lately, it has come to occupy the centre-stage in marketing wars. The amount of money that customers have to pay for the product is called price.

Price is the amount of value a product a masses in the market. To a manufacturer, price represents quantity of money received by the firm or seller. To a customer, it represents sacrifice and hence his perception of the value of the product.

Pricing is the only elements in marketing mix that creates revenue, the other generate costs.

Every firm has different Pricing objectives. A firm can choose from the following a) Survival in a competitive market. b) Maximize current profits and return on investment c) Balance price over product line d) Maximize sales growth.

PRICING STRATEGY OF HERO HONDA

Hero Honda continues to have the strategy of parity pricing. They have neither taken the root of doing heavy discounting nor have they tried to occupy the premium position. However, with the launch of CBZ the company is gradually getting into the area of premium positioning .The company keeps of making changes in the pricing of the bikes, whenever there is increase in inputs

44 Ambition ( Drum & Kick ) Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 43,857.00 48,512.00 Calcutta 45,343.00 48,500.00 Chennai 45,814.00 49,469.00 Delhi 44,612.00 46,873.00 Mumbai 45,513.00 49,806.00 Pune 43,865.00 47,973.00

Ambition ( Disc & Kick ) Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 46,514.00 51,413.00 Calcutta 48,066.00 51,400.00 Chennai 48,663.00 52,367.00 Delhi 47,461.00 49,770.00 Mumbai 48,283.00 52,820.00 Pune 46,530.00 50,870.00

Ambition ( Disc & Self Start ) Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 51,004.00 56,314.00 Calcutta 52,667.00 56,300.00 Chennai 53,474.00 57,260.00 Delhi 52,275.00 54,666.00 Mumbai 52,964.00 57,912.00 Pune 51,034.00 55,767.00

CBZ Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 51,192.09 56,579.71 Calcutta 53,993.73 57,698.73 Chennai 54,939.00 58,120.00 Delhi 53,340.74 55,811.74

45 Mumbai 58,705 63,213 Pune 51,799 56,657

SPLENDOR Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 40,948 45,331 Calcutta 41,612 44,550 Chennai 41,739 45,310 Delhi 41,080 43,281 Mumbai 41,831 45,763 Pune 40,322 44,122

CD100 SS Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 38,375.91 42,530.54 Calcutta 39,003.26 41,800.26 Chennai 39,932.00 42,950.00 Delhi 38,507.68 40,664.68 Mumbai 39,709 42,797 Pune 37,722 41,295

CD100 Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 36,896.88 40,915.80 Calcutta 37,494.76 40,199.76 Chennai 38420.00 41,410.00 Delhi 37,023.05 39,155.05 Mumbai 38,992 42,027 Pune 37,231 40,762

PASSION PLUS Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 41,898 46,403 Calcutta 42,574 45,549 Chennai 42,732 46,857 Delhi 41,885 44,127 Mumbai 43,816 47,920 Pune 42,232 46,198

PASSION PLUS DISC Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 44,494 49,237 Calcutta 45,212 48,150 Chennai 45,365 49,592 Delhi 44,482 46,950 Mumbai 46,541 50,882 Pune 44,853 49,048

SPLENDOR+ DRUM Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 40,447 44,818 Calcutta 41,111 46,500 Chennai 41,223 45,321 Delhi 40,579 42,788 Mumbai 42,351 46,328 Pune 40,822 44,666

SPLENDOR+ DISC

47 Prices (in Rupees) City Ex. Showroom Price On Road Price Bangalore 43,043 47,653 Calcutta 43,749 49,200 Chennai 43,856 48,001 Delhi 43,175 45,311 Mumbai 45,076 49,290 Pune 43,444 47,516

CD DAWN Prices* (in Rupees) City Ex. Showroom Price On Road Price Bangalore 31,379.00 35,213.00 Calcutta 31,899.00 33,999.00 Chennai 30,899.00 34,800.00 Delhi 31,899.00 33,944.00 Mumbai 32,065.00 35,147.00 Pune 30,899.00 33,880.00

*This price includes the Celebration discount of Rs. 1001/-

PLACE

The place element of the marketing mix concerns decisions regarding how the company or firm makes their products available to the consumers. It involves the various activities a company undertakes to make the product accessible and available to the target customers. This is the distribution element of the marketing mix. It also understands the various types of retailers, wholesalers,

48 and physical distribution. Place in broader term includes Channels, Coverage, Assortments, Locations, Inventory, Transport, etc.

There are three broad decision areas in distribution. These are channel strategy, channel management and physical distribution.

CHANNEL STRATEGY A channel is a ‘pipeline’ through which the product is passed to get from the manufacturer to the end-user.

LENGTH OF A CHANNEL The numbers of intermediary channels are used to designate the length of a channel.

A zero level channel (also called direct-marketing channel). It consists of a manufacturer selling directly to the final customer. Manufacturer Consumer

A one level channel contains one selling intermediary such as a retailer. Manufacturer Agent/dealer/retailer Consumer

A Two level channel contains two intermediaries Manufacturer Wholesaler /dealer/Retailer Consumer

A Three level channel contains three intermediaries. Manufacturer Distribution Wholesaler Retailer Consumer CHANNEL MANAGEMENT

Channel management ensures that the firm manages there intermediaries so that they can get the best out of them. It is about the relationship that the firm has with their intermediaries, the margins they give them, the training and support they provided and the activities and service that the firm requires from them in exchange.

49 PHYSICAL DISTRIBUTION Physical distribution concerns the logistics of getting your product from the factory floor to the end user. It is about the issues such as the re-ordering of stock by intermediaries; whether to use trucks or train to transport the products; whether it is better to have one factory and several dispersed warehouses factories from which the firm transports the finished goods direct to wholesalers and retailers.

50 CHANNEL OF DISTRIBUTION IN HERO HONDA

Hero Honda continues to have the same policy of directly approaching the dealers. However the company has made some changes in the dealership requirements. The company has now divided its into three categories, A, B and C depending upon the status of the town. Hero Honda has made some regulations and its dealers are bound to fulfill specific requirements for their showroom and workshops in terms of area. The company has also started focusing on the rural marketing such as Agartala (Tripura), Tinsukia (Assam) and Bhagalpur (Bihar). The company has also increased the number of dealers from 350to 400.

DISTRIBUTION CHANNELS- Hero Honda has very strong Distribution channel in India. Hero Honda distributes its products through Regional officer, Authorized dealers Etc.

HERO HONDA IN INDIAN HAS 3500 AUTHORISED DEALER Criteria for selection of distributions; 1. Financial position to the distributors 2. Goodwill 3. Situation of show room 4. Past record 5. Experience

51 PROMOTION

Promotion concerns the message the firm sends out to potential consumers. It provides information and persuades people. It creates awareness, stimulates demand, differentiates the product and influences public behavior. Promotion won’t make a bad product that no one wants a success; although the absence of promotion might be that a good product is not successful. Promotion includes all the activities or tools a company uses to communicate or promote its product in the market.

52 PROMOTIONAL TOOLS OR PROMOTION MIX

PERSONAL SELLING: It involves personal confrontation either by phone or face. It is an expensive and time consuming tool of promoting the product.

ADVERTISING: It is defined as a paid non-personal communication with a target (usually mass) market. It is cost effective and can reach a large number of people. It can also be used for long term or short term objectives. There are various forms or mediums through which firms can advertise.

BROADCAST MEDIA ⇒ Television ⇒ Radio ⇒ Cinema

PRINT MEDIA ⇒ Newspapers ⇒ Magazines ⇒ Leaflets

OUTDOOR MEDIA ⇒ Posters and Billboards

PUBLIC RELATIONS AN PUBLLICITY: A public relations is an umbrella term and refers to the totality of the organization’s behavior with respect to the society in which it operates. They maybe regarded as good or bad and is reflected in the company’s reputation and image.

53 SPONSORSHIP: Sponsorship can be seen as a part of public relations and it is certainly the case that some sponsorship goes on to generate positive publicity for the organization.

SALES PROMOTION: It is direct inducement which offers an extra value of incentive for the product. It is directly related to sales and induces an immediate response from the consumers. ⇒ Trade promotion: These campaigns are run for the trade (intermediaries who stock or push the product) to encourage them or stock or push the product. ⇒ Consumer’s sales promotion: These are sales promotions aimed at the end customer.

DIRECT MARKETING: It is an interactive system of marketing which uses one or more advertising media to affect a measurable response at any locations.

DIRECT MARKETING INCLUDES: ⇒ Direct mail ⇒ Telemarketing ⇒ Door to door selling ⇒ Direct response advertising: ‘Phone now’ or ‘fill in the coupon’ ads. ⇒ Home shopping of various types. ⇒ Mail order.

Factors that guide a marketers decision in selecting a promotion mix: (A) Nature of product (B) Overall marketing strategy (C) Buyer readiness stage (D) Product life cycle stage.

54 PROMOTION POLICY A. COMPANY GIVE ADVERTISEMENT IN DIFFERENT MEDIA VEHICLES TIME TO TIME. LIKE IN TV, MAGAZINES, NEWSPAPER, ETC.

B. HERO HONDA ALSO ORGANISES FREE SERVICE CAMPS EVERY YEAR.

C. HERO HONDA ALSO TAKE PART IN TRADE FAIR

D. HERO HONDA WITH THE HELP OF ICICI BANK PROVIDES LOAN TO THE CUTOMERS & ALSO PROVIDE EASY MONTHLY INSTALMENT SCHEME TO CUSTOMERS.

HERO HONDA GIVES HUGE COMMISSION TO ITS DEALERS.

SWOT ANALYSIS STRENGTHS ⇒ Hero Honda introduced first-stroke bike in the India market ⇒ Hero Honda gives 80 km/litre. ⇒ Huge sale network (3500 Dealers) ⇒ Better sale service

WEAKNESSES ⇒ Suppose to be very sophisticated ⇒ Not fit for rural India.

OPPORTUNITIES ⇒ Hero Honda is the first manufacture to launch eco-friendly bikes with 4- stroke engines. They have attained a strong good will and popularity in the industry and the consumers. ⇒ Therefore, it has huge potential to retain existing consumers and develop new market share. ⇒ As Government policies are amended against pollution in metro cities, Hero Honda being 4-stroke bike manufacture have great opportunities to explore its new innovations and technologies.

THREATS ⇒ Main Threats for Hero Honda are their competitors like: - ⇒ Bajaj Auto ⇒ TVS-Suzuki ⇒ Escorts Yamaha

56 57 DATA ANALYSIS

1. Please mention your age group

18-20  21-25  26-30  31-35  36- Above

36 Above 18-20 10% 9%

21-25 31-35 33% 37%

26-30 11%

2.) Please mention your income group (per annum in thousand)

 75-100 100-125  125-150 150-175

58  175 & above

175 above 150-175 75-100 4% 11% 17% 125-150 11%

100-125 57%

59 3) Gender  Male Female

Female Male 45% 55%

60 4. Name three motorcycle companies that come to your mind  Hero Honda Motor Ltd.  Bajaj Auto Ltd.  Escort Yamaha Motors Ltd.  Royal Enfield  TVS Ltd.

0 Yamaha LML TVS Bajaj

61 5. What are the things that you look while purchasing a bike? Fuel efficiency Looks Low maintenance cost Reliability(less chances of breakdown) Least physical efforts Low price

80 71 66 70

40 33

30 14 20

0 Maintenance Looks Physical efforts Fuel economy cost

62 6. Which other bike would bike you have preferred to buy?  Yamaha LML Tvs motors Bajaj Pulsar

80 71 66 70

40 33

30 14 20

0 Maintenance Looks Physical efforts Fuel economy cost

63 64 CONCLUSIONS The study, which I conducted on the “In-depth Analysis of Hero Honda Motors Ltd”. in the area of Marketing & Human Resource Management has been a very gratifying experience at the outset, the objectives were to cover the whole marketing strategies and Human Resource policies adopted by HHML. The entire report has been effort to do just that.

At the lower, end, the company has CD 100 and CD100 SS and at the middle level splendor, passion & joys. The CBZ the CBZ range is targeted, at the premium segment. Thus one may say that the marketing strategies adopted by Hero Honda have really paid-off, as the company has constantly managed to increase its market share and also increase its sales .Which is really amazing for a company which has been a market leader to maintain its strong position in the wake of growing competition from its competitors who have been trying to grab a strong share in the market by launching latest technology products.

65 Last three data show that demand of Hero Honda bikes increase & market trends indicated that in future more demand for Hero bikes expected. Hero Honda has been very understanding to its employees. It treats all its employees as the biggest asset of the company. Its innovative H.R. policies are made to ensure that the best of talent, which the company employs, receives the best of talent, which the company employs, receives the best of remuneration. Also the non-monetary incentives given to the employees are such as to maintain the motivation to an time high.

66 67 RECOMMENDATIONS No matter how much on organization progresses it always lack something. These are shortcoming of every company. After completing my report on new Hero Honda motors Ltd., I have some suggestions to offer. The suggestions can be proved useful for the company as they have feasibility and viability. The Recommendations are: - ⇒ Hero Honda Motors only manufacture a wide range of 4-stroke bike. But in my opinion 2 stroke bikes have a better pick-up. So in order to letter to the need of a large segment of customers, who want a better pick-up bike, Hero Honda should go into the manufacture of 2 stroke bikes.

⇒ The company has always targeted urban sector of Indian population. But in the rural sector Escorts, Rajdoot enjoy a great market share. So, therefore Hero Honda should target this upcoming market.

⇒ Hero Honda should keep a strict watch on competitions. For instance Yamaha has introduced a 4-stroke bike “YBX” whose features are almost same as Splendors.

⇒ The company should work more on public relation.

68 ANNEXURE

QUESTIONNAIRE

CONSUMER SURVEY Name: ______Address: ______

Q1. Please mention your age group 18-20  21-25  26-30  31-35  36- Above

Q2.) Please mention your income group (per annum in thousand)  75-100 100-125  125-150 150-175  175 & above

Q3) Gender  Male Female

Q4) Martial Status Married Unmarried

Q5) please mention your occupation 0 Officials Clerical or Salesmen Student First Jobbers Retired

Q6) Name three motorcycle companies that come to your mind  Hero Honda Motor Ltd.  Bajaj Auto Ltd.  Escort Yamaha Motors Ltd.  Royal Enfield

69  TVS Ltd.

Q7) What are the things that you look while purchasing a bike? Fuel efficiency Looks Low maintenance cost Reliability( less chances of breakdown) Least physical efforts Low price

Q8) How did you get to know about Hero Honda that you having at present?  Advertisement  Family information  Friend’s recommendation  Dealer’s recommendation

Q9) Which other bike would bike you have preferred to buy?  Yamaha LML Tvs motors Bajaj Pulsar

Q10) Prefer Hero Honda splendor than other bike because of:  Fuel economy  Less physical efforts  Better looks  Low maintenance cost

Q11) Would prefer TVS Victor to Hero Honda Splendor because of:  Fuel economy  Price  Brand image  Low maintenance cost

70 Q12) what is the image of HERO HONDA in your mind? Economical Durable Smooth Bike Safe Bike Rough and Tough

71 72 BIBLIOGRAPHY

BOOKS ⇒ Marketing Management – Kotler Philip ⇒ Marketing – Ghandhi J. C. ⇒ Principles of Marketing – Palmer Adrian ⇒ Marketing Management – Ramaswamy V. S.

NEWS PAPERS ⇒ The Economic Times. ⇒ The Times of India.

MAGAZINES ⇒ Business World – June 2006 ⇒ India Today.- June 2007

WEB SITES

SPECIFIC SITES – ⇒ www.herohonda.com ⇒ www.indianinfoline.com ⇒ www.premjis.com ⇒ www.sirindia.com

SEARCHING SITES – ⇒ www.google.com ⇒ www.indiatimes.com ⇒ www.yahoo.com ⇒ www.webcrawler.com ⇒ www.askjeeves.com