PREFACE

Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a

view of the whole business organization and its ultimate objective concern for marketing
must penetrate all areas of the enterprise. Market survey in today’s competitive world is a
must for every organization.

This project is a study of market potential of Hero Honda. The rational behind this particular
study is to find out the present m
arket scenario of various brands & to find out the corporate need and perception. It was a
pleasurable experience to conduct a research on behalf of Hero Honda pertaining to the study
of the Automobile Sector.

To carry out this research a sample study was pursued where the target was made to the
people of Delhi region. Various statistical and analytical tools and techniques are applied to
ascertain and depict the present scenario.

Conclusion and there by recommendation has been arrived at by proper and justified
interpretation of the result derived from the above said analytical tools and techniques.
 MISSION STATEMENT

IN PURSUIT OF EXCELLENCE

“We, at Hero Honda, are continuously striving for synergy between technology, systems, and
human resources to provide products and services that meet the quality, performance, and
price aspirations of our customers. While doing so, we maintain the highest standards of
ethics and societal responsibilities, constantly innovate products and process, and develop
teams that keep the momentum going to take the company to excellence in the new
millennium”.
1.1 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

• The Automobile sector is one of the fastest growing manufacturing sectors in India.
• In the 90s the industry witnessed an average growth rate of above 20 percent.
• Indian Automobile Industry is characterized by a very high percentage (75 per cent)
of two wheeler production, ranking second only to Taiwan.
• The world leaders in the sector are evincing keen interest in establishing
manufacturing facilities for manufacturing and assembling components.
• A politically stable and vibrant State, Andhra Pradesh is centrally located with the
support of seaports, international airports, assured and reliable power supply,
abundant water, broad base of auto component manufacturers, highly trained, skilled
and disciplined manpower and is therefore, the preferred location for Automobile
industries.
• The interest of the state has been duly noted by Global Auto Majors, who have
indicated their interest to consider Andhra pradesh for establishing manufacturing
facility.
• The Government of Andhra Pradesh invites leaders in the industry to set up
manufacturing facilities to manufacture vehicles or vehicle components in the State.
The ideal places to locate companies in the Auto Sector are the Hyderabad-
Zaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and
Vijayawada-Guntur corridors.
• The Government is also formulating an Auto Policy, which would give a proper
direction to the growth of the sector.
• There are more than 20 auto –component manufacturing companies in the State,
manufacturing components such as grey-iron castings, precision aluminium castings,
leaf springs,oils and lubricants, diesel fuel injection equipment, electronics and auto
electronics and auto electrical, front axles, gears, forging, machined components,
pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter
motors, alternators, electronic regulators, high pressure die castings, clutch covers,
fuel filters ,etc.
• Most of these components are presently being supplied to Hero Honda, TVS Suzuki,
Escorts Yahama, Bajaj and others. Amaron Batteries are manufactured in Chittoor
district. Around 119 components manufacturers have been certified for ISO 9000
quality standards and seven companies achieved the QS 9000 quality standard set by
government and motors association.
1.2 ABOUT THE COMPANY

Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian
motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich
background of producing high value products at a reasonable price led the world's largest
manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so
harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a
Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda establish itself as an
intelligent purchase. Its unique features like fuel conservation, safety riding courses and
mobile workshops helped the group reach in the interiors of the country.

Finance services helped facilitate purchase, as did an efficient dealer network across the
country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention
overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades, including the National
Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business
School Association of India Award, against 200 contenders.

Its main Models are

• Hero Honda
o cbz
o splendor
o cd100
o cd100ss
o street smart
o passion
o Karizma
o CD dawn
o Ambition 135
1.4 VISION OF THE COMPANY

The Legend of Hero Honda

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

This is proved by the company’s sales over the years:

1985.86 43,000 units

1989.90 96,200 units
1998.99 5,30,600 units
1999-00 7,61,210 units
2000-01 10,29,555 units
2001.2 14,25,195 units
2002.3 17,78.392 units
Customer satisfaction, a high quality product, the strength of Honda technology and the Hero
group’s dynamism have developed HTML scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing Director, “We will
continue to make every effort required for the development of the motorcycle industry,
through new product development, technological innovation, investment in equipment and
facilities and through efficient management”.

1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984
➢ Company incorporated.
➢ Technical collaboration signed.
➢ Foundation stone lay.
➢ 1983 - shareholders agreements signed.

1985
➢ First motorcycle (Model CD 100) produced.

1987
➢ Engine plant started.
➢ 1,00,000th Motorcycle produced.

1989
➢ Sleek model introduced.

1991
➢ 5,00,000th motorcycle produced.
➢ CD-SS model introduced.
➢ Economic times – Harward business school award for excellent Governance
to Hero Honda Motors Ltd.

1993
➢ Hero group sponsors Hero cup five nations cricket tournament
1994
➢ Splendor model introduced.

1995
➢ National Award for outstanding contribution to the development of Indian
small scale industry (NSIC Award presented by President of India)
➢ The analyst award 1995 presented to Hero Honda Motors Ltd. on being
ranked 9th amongst the most investor rewarding companies in India.

1996
➢ 1000 motorcycle per day production started.

1997
➢ 15,00,000th motorcycle produced.
➢ Street model introduced.
➢ Hero sponsored 6th women world cup cricket tournament.

1998
➢ 20,00,000th motorcycle produced.
➢ 1st Hero Honda Master golf championship held at Delhi.

1999
➢ 30,00,000th motorcycle produced.
➢ CBZ model introduced.
➢ 7th World Cup Cricket tournament sponsored at England.
➢ Most admired business Baron CEO award conferred upon the Chairman
Brij Mohan Lal Munjal.
2001
➢ Passion and Joy motorcycle launched.
➢ One million motorcycles produced in one single year.
➢ 50,00,000th bike produced.
➢ Winner of the review-2000-Asia’s leading companies’ award 2000.
➢ National productivity award for the best performance in automobile and
tractors.
➢ Sir Jahangir Ghandy medal for industrial peace awarded to Brij Mohal Lal
by XLRI Jamshedpur.

2002
➢ Declared “company of the year” by economic times business award.
➢ Chairman Brij Mohan Lal awarded the “entrepreneur of the year” award by
Business standard.
➢ Ambition launched.

2003
➢ Declared “company of the year” by economic times business
award for the second time.
➢ Karizma the sports segment bike launched.
This all says about the golden past of the company and the company is going on
to the path of success.
1.6 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market share

HERO HONDA Motorbikes 75% market share

BAJAJ AUTO Scooter+Motorbikes+ Scooterate 25% market share
LML Scooter+Motorbike+Scootrate 30% market share
TVS Motorbikes+Scootrate 15% market share
YAMAHA Motorbikes 15% market share
ENFIELD Motorbikes 10% market share

According to the recent results company (Hero Honda) registered a sales increased by 24.5%
over the past years. Same month TVS also registered increase of 45% while the other
companies are not enjoying quiet good increase in sales. While the whole industry registered
an increase of about 17% only. So in present scenario the Hero Honda comes as the leader of
whole automobile segment while there is immense competition in industry to get the highest
market share.

BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly, Virendra Sehvag,
Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand ambassadors joining the add
campaign together to promote “Ambition”. All of these celebrities are the member of Indian
cricket team and very much popular in younger generation. In the last year with the launch of
its new premium bike Karizama Hero Honda signed its new brand ambassador who is a cine
star and is also very popular. He is Hritik Roshan.

Service Your Bike

Hero Honda has always taken a lead in terms of defining service standards in two wheeler
industry with an aim to provide "Total Customer Satisfaction" for their valuable customers
across the country and also internationally. We are constantly endeavoring to improve the
quality of our service facilities at our Dealerships. The first and foremost step to achieve this
was creating Automated Workshops at our Authorized Dealerships and Service Centers
across the country.

Automated Workshops

Hero Honda has the largest chain of Automated Workshops providing service to their
valuable customers by using latest service technology. Automated Workshops have standard
layout, hydro electric motor cycle lifts, dust free engine rooms and use pneumatic tools and
equipment to ensure quality repair in customers motorcycle. The workshop environment and
usage of pneumatic tools increases mechanics efficiency and their motivation to provide
quality service. The layouts have been standardized to ensure that there is a transparency of
service. The customers can view their motorcycle repair while sitting comfortably watching
TV or relaxing in the customer lounge. Workshop Automation has become a mandatory
service standard for all Hero Honda Dealers and Service Centers.
 Training
The regular Technical Training Programmes for Dealers Workshop staff to keep them
updated and refreshed about the latest price technology, product technical details as well as
service and repair procedures to handle customers motorcycle with utmost care as well as to
provide them the service quality of highest order is a focus area at Hero Honda. Hero Honda
has six (06) training centers across the country. There are 05 zonal training centers of Pune,
Bangalore, Calcutta, Chennai and Delhi to take care of technical training requirements of
dealers in each zone as well as local technicians. There is a National Training Center at
Dharuhera to take care of all advanced level technical programmes for our dealers staff and
our in house service engineers. Hero Honda keeps an organizing Dealers Mechanics Contest
at Zonal Level and National Level to develop competitive spirit among mechanics as well as
in the process to update their skills and product knowledge.

Customer Service

Hero Honda keeps on taking always-new initiatives to maintain its leadership on service as
well as enhance customer satisfaction level on an ongoing basis. Some of the new initiatives
related to customer service are as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers
· Pre Paid Reply Cards
· Automated Mobile Service Workshops
· Mega Millennium Camps
· On the Job Training Programmes
· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our dealers to keep our
customers always in our mind on top priority.
 Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero Honda is also launching very soon a novel concept and a very major initiative - Safety
at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of Hero Honda's

motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding
techniques through various audio visual aids. Safety Instructors shall be imparting riding
skills as well as education to the customers. Dealers shall also conduct a major programme in
their respective towns with the association of local traffic police on a regular basis on safety
education and correct riding techniques.
2.1 OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in mind.

 To study the brands of Hero Honda & consumers perception with its competitors.

 To know why people buy Hero Honda and why some people prefer other company.

 To study the features of different brands that give a good idea of various products and
services offered by the company.

 To understand the competitive environment in which the company is operating and is

desired to meet customer need and satisfaction.

 To provide useful information to the company about the product features of various
competing companies.
2.2 METHODOLOGY

The methodology used in conducting the research work on HERO HONDA with major
emphasis on its sales and marketing strategies involve the following steps:

Why I have selected HERO HONDA only?

I have selected Hero Honda for my summer training because it is the company that is
growing day by day. It has maximum market share with comparison to its
competitors. And it is the company that gives highest sales and it is also the
highest two-wheeler manufacturer.

Defining the problem and deciding research objectives:

Defining the objective is the most important part of any study process. Proper defining of the
problem is a must for proceeding further with the research process. The type of study to be
carried out, the questions to be raised, the sampling procedure to be followed, and the data to
be collected, all depends on a correct understanding of the problem. Also, by clearly focusing
on the real problem, the research job can be simplified and completed with the minimum
cost, effort and data.

Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:

In this a plan was developed about how to collect the require information i.e. whom to
contact for gathering the relevant data. Data is the foundation of all research. It is the raw
material with which a researcher functions.
Therefore, it requires great care to select the sources of data. Data, or facts, may be obtained
from several sources. Data sources can either be primary or secondary.

A. Secondary data:

The sources from which secondary data was collected:

• Press releases of the company.
• Newsletters and In-house journals.
• Brochures and detailed descriptive leaflets
• Magazines like Business World, Outlook, Auto India, etc.
• Websites such as www.herohonda.com, www.google.com. These were the sources
from which secondary data has been gathered. Most of the information presented in
this report was extracted from the above data sources.

B. Primary data:

Collection of primary data was conducted by visiting the people personally for the
preparation of the report.

2. Research approach:
It means the way by which the information was collected. Visiting the various places of
Delhi, getting the questionnaire filled by different individuals.

Beside this, frequent visit to the showrooms of the company was of great help to conduct
the analysis and research work.
3. Contact methods:
Instrument or Data collected Forms: It is the method by which data is gathered. It could
be done through various instruments like questionnaires, observations, getting
information from the staff members of the agency, contacting to the motor mechanics was
sufficient enough to conduct the study.

4. Collection of information :
The primary information was collected by face-to-face and direct interviews with the
peoples and the customers. They provide the relevant information regarding the profile of
the company as compared to the other company in the Indian market. Most employees
suggested visiting company’s web site, as it was not possible for them to spare time from
their busy schedules.

The secondary sources of information were various web sites of the companies,
newspapers & magazines such as The times of India, The Hindustan Times, Business
world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of the information
has been done on the basis of various sales and marketing strategies adopted by the
company during its tenure.

6. Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and analysis of data, it
was recorded in the form as prescribed. The major part of the report is the findings. The
finding also includes charts, tables and diagrams etc. The report also mentioned the
limitations of the project undertaken. Then conclusion has been drawn out of the findings
and various recommendations have been given at the end of the report. Certain tables on
the basis of which the findings were made have been included in the appendices section
followed by the bibliography.
2.3 SCOPE OF THE STUDY

Hero Honda is spreading its wings and widening its business horizon to reach and serve
customers at new centers in the year ahead. The company services are backed by a highly
motivated and technology driven team to achieve customers need, product expertise and
geographic reach.

The study is oriented towards the concept of different brands offered by Hero Honda and its
competitors to its customers. The company has endeavored to move fast in providing market
solution, which maximize customer needs and convenience, using multiple delivery channels
in composing the agency network, service centers, lower service cost and increased
efficiency.
2.4 LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company to assess how
far the customers are satisfied with product and services of Hero Honda. During the course of
the study the following limitations were observed:

 The method will be unsuitable if the number of persons to be surveyed is very less as
it will be difficult to draw logical conclusions regarding the satisfaction level of
customers.

 Interpretation of data may vary from individual depending on the individual

understanding the product features and services of the company.

 The method lacks flexibility. In case of inadequate or incomplete information the

result may deviate.

 It is very difficult to check the accuracy of the information provided.

 Since all the products and services are not widely used by all the customers it is
difficult to draw realistic conclusions based on the survey.
 CBZ

The Hero Honda CBZ (pronounced CeeBeeZee) is

the latest offering from Hero Honda for the Indian
market. With a 156cc engine, the company claims
that the bike has a top speed of 100kph within 5.6 seconds. Though the bike has the largest
displacement engine, its top speed doesn’t match up to many of its competitors. In all other
respects, it is a bit too early to decide whether the CBZ will sell in the same numbers as the
Splendor. Though the initial market response has been good, only time will be the final
arbiter.
Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"

Splendor
A combination of style and economy makes the Splendor is a bike
worth investing in. The latest from the Hero Honda factory offers
both performance and looks. It has good looks, excellent handling characteristics and a
smooth drive over any type of terrain, thanks to the changes in the suspension at front and
near as well as the new frame design. All these features contribute to the Splendor being one
of the best selling four stroke-two-wheelers in India. It also meets all the current pollution
standards. A healthier beat, springy ride and overall low maintenance has aided in the record-
breaking sales of this bike.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.2b hp@8500 rpm
Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"

S
tr
e
e
t
 1
0
0
The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The
Hero Honda Street 100 is equipped with unique features like city-clutch, which is designed
specially for city driving. It has rotary gears, which allow the rider to flip directly from the
fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-and-go’
traffic. A self-starter button comes as an option. The Street can be purchased with a variety of
seat layouts and has options like a water pump, spray can, larger luggage tray, etc. Its major
competitor is the much cheaper K4 from Kinetic. Major plus points that justify the higher
price are the centrifugal clutch and the rotary gears. However, the liberal use of plastics
negates much of the ‘feel good’ factor and has hindered sales to a large extent.
Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : N/A
Max Power : N/A
Wheel base : 1,205mm
Ground Clearance : 133mm
Ignition : Electronic
Dry Weight : 101kg
Fuel tank Capacity : 11litres
Battery : 12V
F/R suspension : Telescopic
R/R suspension : Swing arm and Hydraulic dampers
Max Speed : N/A
Front Tyre size : 2.25x17"
Rear Tyre size : 2.50x17"

CD100SS
The CD100SS is designed for those who live life in the fast lane, rough and tough, for those
who would love to take a bike on the stumbling village roads. It shares almost all
components with the CD100, except for the additional reinforcement. With larger, reinforced
shock absorbers, wider tyres, heavier body weight and engine guard, the Hero Honda CD 100
SS weights slightly more, resulting in some cut down in the fuel economy it offers. Minor
problems of the CD100 have been rectified in the SS model. If you wish to ride into the
hinterland, this is the bike for you.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.0bhp@8000rpm
Wheel base : 1,220mm
Ground Clearance : 165mm
Ignition : Electronic
Dry Weight : 103kg
Fuel tank Capacity : 10.1litres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 85kph
Front Tyre size : 2.57x18"
Rear Tyre size : 3.00x18"

Features :
Engine 4-stroke, single cyclinder, air-cooled
Displacement 97.2cc
Clutch type Manual
Clutch Primary -
Clutch Secondary Multi-plate wet
Transmission 4-speed constant mesh
Final Drive Roller chain
Ignition Electronic
Starting Kick starter
Frame T-Bone type
Suspension (Front) Telescopic hydraulic fork
Suspension (Rear) Swing-arm with hydraulic dampers
Dimensions (LxWxH) 1885x770x1060mm
Wheel Base 1210mm
Ground Clearance 135 mm
Dry Weight 95 kg
Tyres:Front/Rear 2.50"x18"/2.75"x18"
Max.Power 7.0 PS @ 8000 rpm
Max.Speed 85 Kmph
Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)

A
m
b
 it
i
o
n
1
3
5

Features :

Engine 4 stroke
Displacement 133 cc
Maximum Power 11 BHP / 11.15 PS @ 8000 rpm
Maximum Speed 100 KMPH
Gears 5
Frame Tubular single cradle, diamond type
Tyres: (Front) 2.75 X 18
Tyres: (Rear) 3.00 X 18
Headlight Trapezoidal 35 / 35 W
Fuel Efficiency 55 KMPL
 CD DAWN

Features :

Engine 4-stroke, air-cooled, single cylinder OHC

Displacement 97.2cc
Clutch Multiplate wet
Gear box 4 speed constant mesh
Frame Tubular double cradle
Battery 12V - 2.5 Ah
Head lamp 35W / 35W - Halogen bulb
Suspension(front) Telescopic hydraulic shock absorber
Suspension(rear) Swing arm with hydraulic shock absorber
Wheelbase 1230 mm
Dimensions (LxWxH) 1980x720x1045 mm
Ground clearance 150 mm
Kerb weight 108 kgs
Tyre (front) 2.75 x 18-4 PR
Tyre (rear) 2.75 x 18-6 PR
Max power 7.4 PS @ 8000 rpm
Max torque 0.79 Kg-m @ 5000 rpm
Bore x Stroke 50.0 x 49.5 mm
Compression ratio 8.8: 1
Starting Kick start

KARIZAMA

If you look at the 223c mill of the Karizma, you can make out the familiar streak that runs
through the engines on the CBZ and the Ambition. No prizes on this count as to the reason
but the 223cc Karizma engine represents - for the moment - the maximum capacity this
modular design theme can be taken to. The crankcase is of virtually the same size though
the covers do have some detail differences and the engine mounts are the same as in the
other two bikes and completing the picture are the scaled-up barrel (with an additional fin)
and head.

The single overhead cam motor features slightly undersquare cylinder dimensions with a
65.5mm bore and a 66.2mm stroke to give a 223cc swept volume. Hero Honda has
designed in the latest convex-type combustion chamber (compression ratio being 9.0 : 1)
for silent running and good power delivery while also giving it the latest Keihin VE 3EA
constant vacuum type carburettor which also packs in the CCVI switch. The CCVI term
stands for carb-controlled variable ignition timing which as it suggests actuates - via throttle
position - one of two ignition maps, for low and high speed operation. This was one area
which disappointed appreciably in the CBZ wherein the engine sounded and felt harsh as
one went past the middle range but here this detail has eliminated such a glitch completely.
Just for the record, the 223cc engine gets the latest version of Honda's AMI (advanced
microprocessor ignition) system which incorporates a three tier, multi-stage digital ignition
system.

The all aluminium alloy engine (with pressed-in steel liner) features an automatic cam
chain tensioner, an air cut off valve (to prevent afterburning in the exhaust muffler) and like
on the CBZ and Ambition, an air injection valve to keep tail pipe emissions in check. With
all this and the extra cubic capacity, the Karizma engine develops 16.76bhp at 7000rpm and
18.35Nm of torque at 6000rpm. This is about 2bhp and 5Nm more than what the Pulsar 180
makes but the reasoning is that the engine had to be stressfree and this fact holds true when
out on the roads.

Transmission is via a five-speed gearbox which has had its final drive ratios revised from
those in the CBZ. A stronger multi-plate clutch is used to take care of the enhanced power
and torque figures. This time round Hero Honda has not faulted and equipped the engine
withan electric starter even though the kick starter to be actuated requires the front right
footrest to be folded out of the way.

ENGINE:
TRANSMISSION:
 PASSION PLUS
Features :

4.1 FACTS & FIGURES

Sale of Hero Honda in Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale of Hero
Honda is less but in urban area it gives very exiting result. This may be because of the
conditions of roads there.

Area % of Respondents
Urban Area 72
Rural Area 28

28%

72%

Urban Area Rural Area

PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken from the mentioned
areas for the survey. It was observed that the people of main town like to use Hero Honda as
they like all features of it. And is according to there pocket

Areas % of respondents
Motijheel 42
Maripur 12
Chatta Chock 26
Mithan Pura 14
Other 6

6%
14%
42%

26%

12%

Motijheel Maripur Chatta Chock Mithanpura Other

 FAMILY INCOME OF RESPONDENTS

The income distribution of the families of respondents shows that the bike, which was
considered earlier to be out of range for middle class families is now becoming very fast an
article for them.

Family income (Rs.) % of Responses

5000-10000 10
10000-15000 46
15000-20000 36
Above 20000 08

8%
10%

36%
46%

5000-10000 10000-15000 15000-20000 Above 20000

 PERSONS WHO KNOW TODRIVE BIKE

Almost every person know how to drive a Bike (In my Survey)

Response % Of respondents
Driving known 96
Driving not know 04

4%

96%
Driving known Driving not know
FACTOR PROMPT TO BUY HERO HONDA

It should be stated that the performance is the most important factor followed by look. The
possible combination and corresponding number of respondents are shown in the table
below.

Features % of respondents
Performance 18
Look 11
Availability 5
Price 1
Maintenance 4
Brand image 5
After sale service 6

10% 12% 36%

8%

2% 10% 22%
Performance Look Availability
Price Maintenance Brand image
After sale service
HOW DID THE RESPONDENT CAME TO KNOW ABOUT
THE BIKE?
The best media of advertisement (according to which the respondents came to know about
the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of
them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46
Magazine 36
Friends 14
Hoardings 02
Others 02

2%
14% 2%

46%

36%

Television
Magazine
Friends
Hordings
Others
PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of
the respondents say that they have purchased their bike through bank loans.

Purchase Type % of Respondents

Cash Purchase 94
Hire Purchase 06

6%

94%

Cash Purchase Hire Purchase

DECISION INFLUENCED BY

Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their
friends and parents influenced them.

Influencer % of Respondents
Parents 16
Self 54
Friends 18
Relatives 08
Others 04

4%
8%
16%

18%

54%
BIKES PREVIOUSLY USED

More than 60% were using Hero Honda CD100 bikes. They were followed by Yamaha
RX100 & very little have chosen other bikes.

Previously Used % of Respondents

CD100 62
Yamaha RX100 32
Others 06

6%
32%

62%
RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing a stiff
competition from Pulsar & Fierro.

Bikes % rating by Respondents

Spleandor 38
Passion 08
Ambition 06
Pulsar 28
Fierro 14
Others 06

6%
14%
38%

28%
8%
6%

Splendor Passion Ambition Pulsar Fierro Others

4.2 SURVEY REPORT

The Initial Quality Study of Two Wheelers in India

Something to Ponder over.

Which model of Motor Cycle would you recommend to your dear friend?

Does the basic reliability of two-wheelers measure up to the promises made by the
manufacturer…?

Where exactly is the quality lacking…?

Are buyers happy with the quality they get…?

What is the trend over the years…?

Would they buy the same model again or more importantly from the manufacturers point of
view… would they advise their friends to buy it…?

So let the people know just how the two-wheelers fared on the road…
WORKS :

It quantifies the initial quality of two wheelers in the form of the universally accepted metric
– Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performance

Links the quality findings with the customer viewpoint
Prelude :

Each year manufacturers of two wheelers sells millions of vehicles in India with an implicit
promise…… that their products will have zero defects.

However, do their Products match up to their promises?

And how can we find out how they perform on the road?

PPM is an initial quality index for two wheelers. It is an index that represents the level of
quality in manufacturing and delivery operations for a given model of two-wheeler.

PPM counts the number of problems faced by the user of a given model of two-wheeler
within the first three months of its usage. The addition of such problems for 100 carefully
chosen vehicles indicates a number called ‘problems per 100 vehicles’ or PP100V. e.g. if a
particular model has initial quality index of ‘216 problems per 100 vehicles’ it means on an
average each vehicle will have 2.16 problems.

The exercise started on 5th July, 2004. The fieldwork was completed on 5th August, 2004.
Field investigators have spent more than 10,000 hours on the road, carefully tracking down
new owners of 14 popular bikes, to find out what problems they have encountered in the first
three months of usage.

Responses were collected from about 100 people living in town for each of the 24 models
totaling to more than 2400 responses from areas.
Aided recall technique was used through a structured questionnaire based interview to collect
the data from the field. Only full-time field investigators of METRIC were employed for data
collection to maintain reliability of responses.
Findings :

The Indian two wheeler industry today offers more than 70 models to a buyer. And
manufacturers are launching new models every day…… More than 20 models were launched
in the last year.

Top this up with a variety of promises ranging from free gifts and financial schemes to the
attractive looking models and jingles in the advertisement.

In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a
trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a given category of two
wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a
rich father may only look at premium bikes.

What next……? Which bike should I buy? A bike with more power…… better looks……
more reliability…… errrr!

Lesser problems per vehicle for a given model could be a good enough reason to go for the
model…..? Yes! But, within my selected category of premium bikes… So which premium
bike has lesser problems?

Do new launches have more problems than older ones? Naa…! Does PPM score depend on
who manufactured the vehicle…? See for yourself!

Manufacturer-wise PP100V scores in Survey

Sr.No. Vehicle PP100V

1 Honda 146
2 LML 165
3 Hero Honda 176
4 Kinetic 183
5 TVS 196
6 Bajaj 196
7 Yamaha 223

Executive bikes scored less problems than economy bikes…however simpler machines like
scooters have the fewest problems

This year we classified motorcycles by the market as premium, executive and economy…...
Amongst the bikes, we found the number of problems were lowest in executive bikes and
highest in economy bikes….

Executive bikes (179 PP100V), then premium bikes (209 PP100V) and last were economy
bike (230 PP100V).

Maximum Problems found in engine and transmissions:

46% of the problems reported by customers were problems like high fuel consumption,
starting trouble, erratic / rough gear shifting, noisy / loose drive chain etc. All these problems
are related to the engine & transmission. Another 12% of the problems were attributed to
miscellaneous aspects like battery discharged, stand hard to operate, etc.
Perhaps this is the most complex part of the two wheelers and hence poses maximum
challenge to the quality control guys in the manufacturing units.
ENGINE Trouble..
Splendour the largest selling executive bike from Hero Honda has reported the lowest
number of problems with ENGINE (37 PP100V) closely followed by the newly launched
geared scooter Eterno (38 PP100V) from Honda.

Simplicity is the beauty

TRANSMISSION WOES :
Gearless scooters/scooterettes have lowest number of TRANSMISSION problems.,
complains Who fulfilled the promised performance and how much…?
Sl No. Manufacturer % models above category average
1 Honda 100
2 LML 100
3 Hero Honda 67
4 Bajaj Auto 43
5 TVS 33
6 Yamaha 33
7 Kinetic 25
SCOPE AND COVERAGE :
Manufacturers and their Models:

Sr.No. Manufacturer List of models studied

* Bajaj
1 Boxer
2 Caliber 115
3 Pulsar 150 / 180
4 Spirit

*Hero Honda
f
5 Ambition
6 CD-100 / SS / Dawn / CD Dawn
7 Splendor / Passion
*Kinetic Engineering

8 Boss

*LML
9 Freedom

*TVS

10 Max 100 R / DLX / DC

11 Victor

*Yamaha
12 Crux / Crux R
13 Enticer
14 Libero
Aggregates and features covered:

§ Overall Satisfaction
§ Overall quality
§ Instrument Panel / Dash Board
§ Locks
§ Control knobs / Switches
§ Handle
§ Lights
§ Body
§ Transmission
§ Engine
§ Wheels
§ Riding
5.1 FINDINGS

It is clear from the report that the Hero Honda Motors is facing cutthroat competition; hence
the company’s manager has to be fast and smart so as to understand the customers needs.
They have to come up with various new techniques or schemes to be able to cater to different
categories of people.

Customers are becoming more wise day by day and they are now willing to know all the in
and out of the things happening around them. This has led to increased customer awareness.

We can analyze that if the brand is reputed that doesn’t win the customers delight unless it’s
provided same value-added features or else we can say competitive advantage.

• For gaining a competitive advantage it has to continuously compare the product and
services with the competitors and find the weak area of the rivals for gaining
competitive advantage.

• Surveys revealed that awareness of Hero Honda Motors is low among its target
segment for creativity awareness. The company has to take some keen step for
promotional activity.

• The company should regularly send the sales person who have good communication
skill to the customers so that they should be aware about the product and services in
market and know the quality of the services offered by the company.
5.2 RECOMMENDATION

While Hero Honda has strong foothold in the industry, the company should look into the
areas of weakness.
In this connection, It is suggested that the company can look into the following areas:

• In order to expand its business it should introduce innovative schemes for young
generations, better financial schemes, etc.

• The company should expand its service centers.

• The must move towards the rural areas to expand its sale.
 Date :_____________

Questionnaire for the survey of Motorbikes .

1. Name __________________________________________________

2. Address _____________________________________________
_____________________________________________

3. Phone No. ___________________

Mobile No. ___________________

4. Age 18 – 22 years [ ] 23 – 27 years [ ]

28 – 32 years [ ] above 32 years[ ]

5. Do you have any bike in your house?

Yes [ ] No [ ]

6. If yes, Name and Company of the bike.

________________________________________________________.

7. If No, Do you have any plan to buy it in next 6 months?

Yes [ ] No [ ]

8. If Yes, Name and Company of the Bike.

________________________________________________________.

9. Which Bike does you like most?

________________________________________________________.

10.Rank the Motorbike manufacturing company.

1. Hero Honda [ ]
2. Yamaha [ ]
3. Bajaj [ ]
4. L.M.L. [ ]

11. Do you remember any advertisement of Hero Honda?

________________________________________________________.
 12. What should the price range in your opinion?

Splendor + ___________________ Sufficient [ ]

CD dawn ___________________ Sufficient [ ]
Passion + ___________________ Sufficient [ ]
CBZ ___________________ Sufficient [ ]
Karizma ___________________ Sufficient [ ]

13. Any new facilities or any improvement that you want.

________________________________________________________
____________________________________________________________________
____________________________________________.

14.Give remark to your old Bike Company.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

15 Give remark to Hero Honda.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

Thanks

Surveyed by: ………………………

Checked by: ………………………
 BIBLIOGRAPHY

BOOKS:

 Name of the book :- Marketing research

Author :- Dr. C.B.Mamoria

 Name of the book :- Marketing research

Author :- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

 Journals published by Hero Honda, Annual Report

 Auto India, Business World

INTERNET:

 www.herohonda.com
 www.google.com