Abhishek Project

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A STUDY ON CUSTOMER SATISFACTION

TOWARDS HERO MOTORS IN ARUNDHATI


MOTORS BALANGIR
(A Case Study In Balangir Town)

A PROJECT REPORT SUBMITTED IN PARTIAL


FULFILMENT OF REQUAREMENT FOR THE AWARD
OF DEGREE OF BACHELOR IN COMMERCE

UNDER THE GUIDANCE OF


Mr. Abhijeet Tali (Faculty of Commerce)
SUBMITED BY
ABHISHEK AGRAWAL

B.COM (Hons) FINAL YEAR

PERSONAL MEMORANDAM
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1. Name of the Project : A STUDY ON CUSTOMER
SATISFACTION TOWARDS HERO MOTORS IN ARUNDHATI
MOTORS BALANGIR
2. Name Of the Student : Abhishek Agrawal
3. Name of the college : JSM Commerce & Arts College
4. Name of the university : Rajendra University
5. Examination Roll No. : RO2521COM007
6. Registration No. :

INTERNAL EXAMINER
EXTERNAL EXAMINER
DEPARTMENT OF COMMERCE
MR. ABHIJEET KU. TALI
(FACULTY OF COMMERCE)

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CERTIFICATE

This is to certify that the dissertation entitled the study of “A STUDY ON


CUSTOMER SATISFACTION TOWARDS HERO MOTORS IN
ARUNDHATI MOTORS BALANGIR” is being submitted by Abhishek
Agrawal, bearing Roll No – RO2521COM007 under my guidance and
supervision.

Place:
Date:

FACULTY OF COMMERCE

JSM COMMERCE COLLEGE

BALANGIR, ODISHA

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DECLARATION

I hereby, declare that this research project entitled,

“A STUDY ON CUSTOMER SATISFACTION TOWARDS HERO


MOTORS IN ARUNDHATI MOTORS BALANGIR”

prepared and submitted by me towards the partial fulfilment of the BACHELOR


OF COMMERCE degree in JSM COMMERCE COLLEGE, BALANGIR
affiliated to RAJENDRA UNIVERSITY, is my own work and it is not submitted
to any other universities/institution or published anywhere for the award of any
degree Or diploma.

Place: Abhishek Agrawal

Date:

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ACKNOWLEDGEMENT

I am extremely grateful to faculty in commerce Mr. Abhijeet Kumar Tali for his
kind consent to supervise my work. The completion of my work practical study
and preparation of this report would not have been possible without his guidance
and timely advice. I pay my thanks to him for giving me his valuable time even at
odd hours and going through the manuscript. I am also thankful to my friends and
family who has given us feedback and co-operation during the preparation of this
project for their help and suggestion at different stages of study.

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ABSTRACT

The main aim and objective of study is to find out customer satisfaction of HERO
Two Wheelers and to find the satisfaction level regarding the opinions, attitudes,
and perception of consumers using HERO Vehicles. The main basis on which
customer satisfaction level analyzed towards HERO vehicles are price, spare parts
availability, mileage and maintenance cost of the car. Customer satisfaction
depends on a product's perceived performance in delivering value relative to a
buyer's expectations, the buyer is dissatisfied. If performance matches
expectations, the buyer is satisfied. If performance exceeds expectations, the buyer
is satisfied. If performance exceeds expectations, the buyer is delighted. The data
collected in this research is primary data and secondary data. The primary data is
collected through the mode of questionnaire. The sample size of research is 100.
The research gives information about the customers are satisfied with HERO
Vehicle because of factors like availability of spares, service given at service
station, low maintenance cost, and price of vehicle is less when comparing to other
brands present in the market. The customers are really looking for the good pickup
vehicles in the HERO brand. By this we can say that company need to concentrate
on fuel efficient and attractive design cars to attract the all age groups. Out of 100
respondents it is observed that 90% of respondents are feeling that the overall
performance of the Hero vehicles is good, and 10% of respondents are feeling that
the overall performance of Hero vehicles is excellent.

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CONTENTS

SERIAL NUMBER PARTICULARS PAGE NUMBER


PERSONAL MEMORANDM 2
CERTIFICATE 3
DECLARATION 4
ACKNOWLEDGEMENT 5
EXECUTIVE SUMMARY/ ABSTRACT 6
CHAPTER 1 INTRODUCTION 8-23
1.1 INTRODUCTION TO THE STUDY 10-14
1.2 RIVIEW OF LITERATURE 15-18
1.3 STATEMENT OF THE PROBLEM 19-23

CHAPTER 2 INDUSTRY PROFILE 24-33


CHAPTER 3 COMPANY PROFILE 34-53
3.1 COMPANY PROFILE MEANING 35-39
3.2 DIRECTORS AND HEADQUARTER 40-46
OF MOTCROP
3.3 OPERATION RAMP-UP 47-52
3.4 DEALER PROFILE 53

CHAPTER 4 DATA ANALYSIS AND


INTERPRETATION 54-73
CHAPTER 5 CONCLUSION 74-85
5.1 FINDING 75-76
5.2 SUGGESTION AND
RECOMMENDATION 77-78
5.3 CONCLUSION 79
BIBLOGRAPHY 80
ANNEXURE, RESPONDENT DETAIL 81-82
QUESTIONNAIRE 83-85

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CHAPTER-1
INTRODUCTION TO THE PROJECT

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

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

This project work has been done to find out whether a customer is satisfied or
dissatisfied, also to measure the level of the customer satisfaction and to provide
this feedback to the company. The first phase of the project involves the collection
of information from the customers for interpreting the characteristics based on
which the customer feels satisfied or dissatisfied. This information is collected by
preparing a structured questionnaire. The questionnaire consists of both open-
ended and closed-ended questions. The questionnaire is designed in such a way
that a customer feels convenient to answer. The collated information through the
questionnaire is analyzed and presented in a statistical form. The findings are listed
and suggestions to solve problems faced have been given in the suggestion part.

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INTRODUCTION TO CUSTOMER
SATISFACTION

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

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

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MEANING OF CUSTOMER SATISFICATION

Customer satisfaction is a business term, is a measure of how products and services


supplied by a company meet or surpass customer expectation. It is seen as a key
performance indicator within business and part of the four prospective of balanced
score card.

In a competitive market place were businesses compete for customers, customer


satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy customer satisfaction drives successful private sector
business.

High performing businesses have developed principles and strategies for achieving
customer satisfaction. This paper presents a framework or set of ideas for using
customer satisfaction principles and strategies to improve the quality
responsiveness.

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

Customer satisfaction is the customer's response to the evaluation of the perceived


discrepancy between prior expectation and the actual performance of the product
as perceived after its consumption.

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DEFINITION
Cocotte, woodruff and Jenkins (1987) define customer satisfaction as
"conceptualized as a feeling developed from an evaluation of the experience."

Here, the timing of satisfaction response is driving consumption.

But there is general agreement with Kotler(2003) that "customer satisfaction is a


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

IMPORTANCE OF CUSTOMER
SATISFACTION
It costs at least 7 times more to source a new customer than it does to retain
existing one a 'satisfied customer tells 5-7 people in a year whilst a 'dissatisfied
customer will tell 14-15 people.

 Companies can boost profits anywhere from 25% to 125% by retaining a


mere 5% more of their existing customers.
 Totally satisfied customers were 6 times more likely to use that services and
recommend it than' satisfied customers.
 Customers who have a bad experience with you and do not complain are
only 37% likely to still do business with you.
 Customers who have an opportunity to complain and the complaint is
achieved are 95% likely to still do business with you.

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FACTORS OF CUSTOMER SATISFACTION
1. Service of quality

2. Reliability of service

3. Knowledge of the staff

4. Being kept informed of progress

5. The way service kept its promises

6. The way the service handled any problem with friendliness of staff

7. How sympathetic staff were to Customers needs

8. Speed of enquiries

9. Number of time had to contact the service

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REVIEW OF LITERATURE

Planning for the future to achieve the long-term objective is integral to the survival
and growth of every business Strategic planning today has to take into cognizance
the rapid changes in technology, increased competitiveness and the turbulent
business environment, also with the world becoming one big global village.

Strategy covers every aspect of business from business reengineering, new


business development, product development and brand positioning to
advertisements promotional campaigns, media and publicity. It is a game of
innovation.

In fact, marketing people are involved in marketing 10 types of entities: goods,


services, experience, events, persons, places, properties, organizations, information
and ideas. Marketing management is the art and science of choosing target markets
and getting. Keeping and growing customers through creating, delivering and
communicating superior customer value.

REVIEW OF LITERATURE

Satisfaction:

Satisfaction is a person's feelings of pleasure or disappointment resulting from


comparing a product's perceived performance (outcome) in relation to his or her
expectations. As this definition makes clear, satisfaction is a function of perceived
performance and expectations. If the performance falls short of expectations, the
customer is satisfied. If the performance matches the expectations, the customer is
highly satisfied or delighted. Many companies are aiming for high satisfaction,
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because customers who are just satisfied still find it easy to switch when less good
offer comes along. Those who are highly satisfied are much less ready to switch.
High satisfaction or delight creates an emotional affinity with brand, not just a
rational preference. The result is high customer loyalty. Some of today's most
successful companies are aiming for TCS- Total customer’s satisfaction.
Consumers from their expectations on the basis of message received from sellers,
friends and other information sources

Customer's satisfaction:

Customer satisfaction may be defined as a qualitative measure where in a customer


experiences various degrees of satisfaction until the performance of the product
matches his expectations. Costumer's satisfaction with a product depends on the
product's performance relative to the buyer's expectations. If the performance of
the product falls short of his expectations the customer is dissatisfied. If the
performance of the product matches his expectations the customer is satisfied. If
the performance of the product exceeds his expectations the customers is highly
satisfied. Customer’s satisfaction can be achieved through quality. Value and
service. For a customer- centered company customer satisfaction is both a goal as
well as a major factor in the company's success. Companies that achieve high
customer satisfaction ratings must make sure that their target customers come to
know of it. The companies must realize that highly satisfied customer several
benefits to the company. They are fewer price sensitibe and they remain customers
for the longer period. They also talk favorable to the others about the company and
its product and services. Although customer centered firms seek to deliver a high
level of customer satisfaction than their competitors, they do not attempt to

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maximize the customer satisfaction by lowering the price and increasing its
services. But this may result in lower profits. The company may be able to increase
profitability along with customer satisfaction by improving its manufacturing or
investing on the R & dissatisfaction is the customer's fulfillment response. It is a
judgment that a product or service feature, or the product or service itself, provides
a pleasurable level of consumption related fulfillment.

In less technical terms, we translate this definition to mean that satisfaction in the
customer's evaluation of product or service in terms of whether that product or
service has met their needs and expectations. Failure to meet needs and
expectations is assumed to result in dissatisfaction with the product or service. In
addition to a sense of fulfillment in the knowledge that one's needs have been met,
satisfaction can also be related to other types of feeling, depending on the
particular context or type of service. For example, satisfaction can be viewed as
contentment- more of a passive response that consumers may associate with
services they don't think a lot about or services that they receive routinely over
time. Satisfaction may also be associated with feelings of pleasure or services that
make the consumer feel good or associated with a sense of happiness. For those
services that really surprise the consumer in a positive way, satisfaction may mean
delight. And in some situations, where the removal of a negative leads to
satisfaction, the consumer may associate a sense of relief with satisfaction. It is
also important to recognize that although were tend to measure customer
satisfaction at a particular point in time as if it were static. Satisfaction is dynamic,
moving target that may be highly variable depending on which point in the usage
or experience cycle one is focusing on. Similarly, in the case of very new services
or a service not previously experienced, customer expectations, maybe barely
forming at the point of initial purchase, this expectation will solidify as the process

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unfolds and consumer begins to form his or her perception. Through the service
cycle the consumer may have a variety of different experiences - some good, some
not good and each will ultimately impact satisfaction.

India is the second largest manufacturer of two-wheelers in the world. It stands


next to Japan and China in terms of the number of two wheelers produced and
domestic sales respectively.

Indian two-wheelers industry made small beginning in early 50’s when


Automobile products of India (API) started manufacturing scooter in India. Hero
was established on 13th of April 1984. The Indian two wheelers Industry can be
broadly classified as scooter, motorcycles and mopeds/scooters. In last six years
domestic two-wheelers has seen structural changes. This can be seen from the
change in composition of two wheeler sales, where the motorcycles have gained
market share from the scooter and moped or scooters segments.

The consumer is now faced with proliferation of brand models. Getting new
customers as well as retaining them is an important task of manufacturers. So
service after sales service is very important. A satisfied customer brings in more
name and goodwill to the company, which is why customer satisfaction is given
more importance in today's competitive world. A study on this aspect with Hero
two-wheelers at Hero MotoCorp Ltd was made.

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STATEMENT OF THE PROBLEM
This Project has been titled "A study on customer satisfaction towards hero motors
in Arundhati Motors, Balangir."

To study the market of Hero motors the consumer response to the bike and needed
improvement area.

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

OBJECTIVES OF THE STUDY


This study was conducted keeping the following objectives in mind.

1. To study the factors influence the purchase of Hero two-wheelers.

2. To know the customer level of awareness of Hero two-wheelers.

3. To know the various factors, which influence customers in purchasing, there


two-wheelers?

4. To find the after sales service offered by Hero MotoCorp Ltd.

5. To know the customer level of satisfaction of two-wheelers with respect to Hero


MotoCorp Ltd.

6. To find the profile of Hero MotoCorp Ltd two-wheeler customers.

7. To understand two wheeler sector in India.

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SCOPE AND LIMITAIONS OF THE STUDY

 This sample size is limited, so customer satisfaction. as to give the accurate


information regarding

 The scope is very limited, because attitude & expectations of the people
change according to the time & situation.

 The study is restricted to Bolangir city only and that to among 100
respondents. Consistency was lacking with regard to the information given
by few customers. The study is restricted to the certain area, so it could not
give whole picture.

LIMITATIONS
I have observed the following limitations in the course of my study.

1. The areas which were selected were limited only to Balangir i.e., the findings
are regional and do not represent the state or country.

2. Time constraints hampered the study.

3. Since the study involved in gathering information was from upper to higher-
middle class people, interaction with them was difficult.

4. There may be respondent's bias.

5. Even though utmost care has been taken in conducting the survey, the findings
may sometimes differ from the population.

6. The study conducted of in academic nature

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NEED FOR THE STUDY

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

Without customer, no market exists. As the customers are regarded as the


superiors in today's market, the level of satisfaction and their preferences should be
keenly studied.

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

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

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

Getting a new customer is more difficult, than retaining a current


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

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

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RESEARCH METHODOLOGY

Data collection is most essential aspect of any research because the whole result of
research depends on the data and information hence, the methodology adopted by
me to collect the data final interpretation were through.

1. Survey Research: This kind of research finds favor with almost all the
social science researches. It is one of the most popular methods of
investigation. because a study of the attributes and variables in relation to
the population (the entire group of people, inhabitants, items etc....) is easier
and is more accurate. Its suffers from a negligible magnitude of error. Now-
a-days sample survey has become an effective method for research. This is
possible with the help of personal interviews with are backed by
questionnaires, direct oral observations. Indirect oral observations and
etc......
2. Primary source of Data: Primary sources of data are the data which
needs the personal efforts to collect it and which are not readily available.
Primary sources of data are the other type of sources through which the data
was collected.

Following are few ways in which the data was collected:


a) Questionnaires: Its set of questions on a sheet of paper was being given
to the respondents of fill it, based on which the data was interpret
b) Direct Interviewing: Direct interviewing involved the process where
asked the questions directly to the customers and got the feedback.

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Secondary source of data: Secondary source are the other important
sources though which the data were collected. These are the readily available
sources of the data where one had need not put much effort collect, because it is
already been collected and part in an elderly manner by some researchers, experts
and socialites.

The secondary sources helpful for study were:

Textbooks like Marketing Management, Research Methodology, Advertisement,


and sales promotion. Internet was made use for the collection of data. Newspaper
was also referred. Business magazine also referred. Some journals were also
referred.

1. Library Survey: This was also undertaken for the collection of data.
This type of research is based on books like periodical, journals,
documentations, and secondary data etc. which are available in the library.

2. Sample Size: By using judgment random Sampling technique 100


respondents are selected for the purpose of the study. Direct questionnaires
are used to survey the customers.

3. Period of the study: The study is undertaken in the month of


December.

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CHAPTER-2
INDUSTRY PROFILE

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INDUSTRY PROFILE

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

The automobiles sector is divided into four segments-two wheelers(mopeds,


scooters, motorcycles, electric two-wheelers), passenger vehicles (passenger cars,
utility vehicles, multi-purpose vehicles), commercial vehicles (light and medium-
heavy vehicles), and three wheelers (passenger carriers and good carriers).

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

The world standings for the Indian automobile sector, as per the Confederation of
Indian Industry, are as follows:

 Largest three-wheeler market


 Second largest two-wheeler market
 Tenth largest passenger car market

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 Fourth largest tractor marker
 Fifth largest commercial vehicle market
 Fifth largest bus and truck segment

Indian Two-Wheeler Market is noticing a continuous upsurge in demand


and thus resulting in growing production and sales volume. This owes a lot to the
launching of new attractive models at affordable prices, design innovations made
from youths" perspective and latest technology utilized in manufacturing of
vehicles. The sale of two-wheeler products has increased substantially. The sales
volumes in the two-wheeler sector shot up from 15 percent to 24 percent between
2008-09 and 2013-14. A considerable expansion was seen in the sales volume of
the scooter segment during 2014-15 as far as the two wheelers were concerned.
This positive node makes many new players enter in this density market. The
domestic motorcycle sales volume moved up to to percent, whereas the scooter
segment recorded a growth of 30.7 percent in sales volume. In the past 2-3 years,
around a dozen new scooter brands have been introduced in India. But the
motorcycle segment lags behind in this regard. This is due to the fact that the
recently launched gearless scooters cater to the needs of both men and women,
while motorbikes are a segment preferred by men only.

Two Wheeler& its role in Indian Context:

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

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

The two-wheeler industry basically comprises mopeds, scooters, scooters and


motorcycles Mopeds are basic entry-level products aimed at lower/middle income
groups, offering company. This category dominated by HERO, HONDA which has
a market share of 50% today. The other major players in this segment include
TVS. YAMHA and BAJAJ AUTO

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

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

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

With sales of over three million vehicles, India is the second largest two-wheeler
market in the world. Vehicle has become a necessity for day-to-day busy life, with
the accelerated industrial and business activity in a liberalized environment.
However, given the limited purchasing power and to high cost of cars, majority of
the middle class vehicle users prefer two wheelers With sales of over million
vehicles, India is the second largest two-wheelers market in the world. China is the
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market leader with around 50 percent of the Asia Market, India, Thailand;
Indonesia & Taiwan are the other key markets for two- wheelers with market share
of 19 percent, 10 percent. 9 percent and 5 percent respectively

In the last four to five years, the two-wheeler market has witnessed a market shift
towards motorcycles at the expense of scooters In the rural areas, consumers have
come to prefer sturdier bikes to withstand the bad road conditions. In the process
the share of motorcycle segment has grown from 48% to 58% the share of scooters
declined drastically from 30% to 40%. The Euro emission norms effective from
April 2000 led to the existing players in the two-stroke segment to install catalytic
converters 4-stroke motorcycles are now replacing all the new models. Excise duty
on motorcycles has been reduced from 32% to 24%, resulting in price reduction,
which has aided in propelling the demand for motorcycles. Fierce competition has
also forced players to cut prices of certain models

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

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

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The net result is that motorcycles now account for 55 percent of the two- wheeler
market, while scooters account for 35 percent. Mopeds have been able to hold their
own at about 10 percent.

GROWTH OF MOTORCYCLES

It is therefore not surprising that every major player is trying to get into the
Motorcycle market to have a piece of the cake. Hero MotoCorp. Ltd is indisputable
the leader with 40 percent share followed by Bajaj with 22 percent.TVS at 19
percent YAMHA at 14 percent ROYAL ENFIELD at 5 percent. The battle is
expected to be fierce but the consumer will be the greater beneficiary.

The growth in motorcycles is slowly losing its hold. It is considered a family


vehicle but perhaps there is competition from the second hand car markets where
prices have fallen down rapidly. Maruti 800 is now available for just 50,000.In
each segment, there is a wide gap between the first two contenders, which makes
their products positioning and marketing strategies most interesting. The two
wheelers market seems to be maturing. There are the usual their conventional
segment of scooters, mopeds and motorcycles. Two new segments are being
created.

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DRAMATIC CHANGES:
Hero MotoCorp is now world's largest manufacturer of two-wheelers. The
company has benefited from the demand shift to motorcycles, as it focuses solely
on this product segment (although has a product called MAESTRO EDGE &
DUET,XOOM in Scooter segment) With fuel efficiency and riding comfort as the
main selling points, MMC has been able to address a wide market.

The coming years will see increasing competition due to the parity in products and
price. The only differentiators will be technology, quality, product range and
service. Imaginative marketing will emphasize relationship building, customer
satisfaction and relationship. All is exploring new techniques such as direct
marketing and institutional sales. Some of them are taking the vehicle actually to
the customer's doorstep. Now the customer is the king.

HISTORICAL DEVELOPMENT IN TWO


WHEELER INDUSTRY

India is the second largest manufacturer and producer of two-wheelers in the


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

In Indian two-wheeler, industry made a small beginning in the early 90s when
Automobile Products of India (API) started manufacturing scooters in the country.
Until 1958, API and Enfield were the sole producers.

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

In the initial stages API it was later overtaken by Bajaj Auto dominating the
scooter segment. Although various Government and Private enterprise entered the
fray for scooters

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

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

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

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

31 | P a g e
The industry had a smooth ride in the 50's, 6o's and 70's when the government
prohibited new entries and strictly controlled capacity expansion. The industry saw
a sudden growth in the Bo's. The industry witnessed a steady growth of 14%
leading to a peak volume of 1.9mm vehicles in 1990.

The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in


providing ease of use to the scooter owners. This helped in inducing youngsters
and working women towards buying scooters, who were earlier, inclined towards
moped purchases. In line with this, the scooter segment has consistently lost its
part of the market share in the two-wheeler market.

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

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

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


as on March 1998 was 27 gnm and 1 nin respectively. The two-wheeler population
has almost doubled in 1996 from a base of ta 6mn in 1990.

32 | P a g e
PENETRATION OF TWO-WHEELERS:

On a base of around 28mn vehicles on Indian roads and around r75mn households,
there were only 16o motorized two-wheelers per thousand households in FY98.
This compares poorly with countries like Thailand where it is around 600 per
thousand households. Also with a household size of 5.5 persons and more than one
wage earner in about 60% of the households, the potential for a second vehicle
demand is also good.

The number of households in the low-income group has fallen since FY86 and has
been more pronounced in the post-reform period. On the other hand, the number of
households in the middle, upper middle and high-income groups that form the
consumer base for two wheelers, have increased. Their share of the total number of
households has increased from 10.6% in FY88 to 20.5% inFY96. This rising
income profile however, has, been more pronounced in the urban areas as average
annual growth in industry surpassed that of agriculture in the period FY93 to
FY96.

33 | P a g e
CHAPTER-3
COMPANY PROFILE

34 | P a g e
COMPANY PROFILE
Hero MotoCorp Ltd. is the world's largest manufacturer of two wheelers, based in
India

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

Hero MotoCorp is now world's largest manufacturer of two-wheelers. The


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

MOTIVE AND PLANS OF COMPANY

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

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MISSION

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

Core Values

 Integrity

Adherence to ethical and moral principles

 Humility

Absence of arrogance, open mind towards absorbing new ideas, innovations


and learning

 Excellence through Teamwork

Persistence and striving towards perfections in all our actions, products and
services

 Speed

Responsiveness in all our actions; ability to execute, implement strategies

 Respect
 Towards elders, seniors; everything worthy in the material, spiritual and the
intellectual world; towards systems, processes and values

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 STRATEGY

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

MANUFACTURING

Hero MotoCorp two wheelers are manufactured across globally benchmarked


manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which
are located in the state of Haryana in northern India. The third manufacturing plant
based at Haridwar, in the hill state of Uttrakhand, the latest addition is the state-of-
the-art Hero Garden Factory in Neemrana. Rajasthan

TECHNOLOGY

In the 1980's the Company pioneered the introduction of fiel efficient, environтем
friendly four-stroke motorcycles in the country. It became the first company to
launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of
the Glamour FI in June 2006. Its plants use world class equipment and processes
and have become a benchmark in leanness and productivity. Hero MotoCorp, in its
endeavor to remain a pioneer in technology, will continue to innovate and develop
cutting edge products and process

DISTRIBUTION

The Company's growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
MotoCorp's extensive sales and service network now spans over to 6000 customer

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touch points These comprise a mix of authorized dealerships, service & spare parts
outlets, and dealer-appointed outlets across the country.

SUPPLY CHAIN MANAGEMENT

As the Company prepares to produce a wider range of products, sluts are being
taken To align the supply chain and prune up its supplier have. During the year, the
Compan kick-started the process of migrating its existing brands to the new brand.
The exercise is expected to be completed during ama-13

During the year, the Company also commenced the process of working with its
vendors to develop new parts. The Company's Supply Chain Management function
is built on three planks:

 Cost

 Quality

 Sustainability

Tracking inventory cost effectively and efficiently is known to be a key source of


competitive advantage in the automobile industry. Hence, it comes as no surprise
that cost leadership is the Company's prime focus area. Continual pressure on
margins forced the Company and its supply chain partners to find innovative and
alternate ways to combat inflation. Considerable attention was given to managing
component inventory in the system, with double-digit growth in inventory
turnover. To align HR processes with the supply chain, top two HR consulting
firms in India are working with supply chain partners. The exercise is aimed at
improving robustness of people processes and resulting in a direct impact on
quality, cost, productivity, delivery and reliability. The move will enable supply
chain partners move to the next or bit of operational excellence. The Company

38 | P a g e
initiated more than to quality improvement projects with supply chain partners to
provide better quality products to custumers.

BRAND

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

39 | P a g e
DIRECTORS AND HEADQUARTER OF HERO
MOTOCORP
Directors

Founder Director and Chairman: Dr. Brijmohan Lall Munjal

Managing Director and CEO: Mr. Pawan Munjal

Board of Directors

NAME OF PERSON Designation

MR. SUMAN KANT MUNJAL


Non Executive Director

MRS. VASUDHA DINODIA Non Executive Director


MR. PRADEEP DINODIA Non Executive Director
PROF. JAGMOHAN SINGH RAJU Non Executive & Independent Director
AIR CHIEF MARSHAL BS DHANAO Non Executive & Independent Director
MR. RAJNISH KUMAR Non Executive & Independent Director
MR. M DAMODARAM Non Executive & Independent Director
MRS. TINA TRIKHA Non Executive & Independent Director
MRS. CAMILLE TANG Non Executive & Independent Director

40 | P a g e
MR. VIKRAM S KASBEKAR Executive director

Dr. Brijmohan Lall Munjal


Mr. Munjal is the founder Director and Chairman

of the Company and the $1.6 billion Hero Group.

He is the Past President of Confederation of Indian

Industry (CII), Society of Indian Automobile

Manufacturers (SIAM) and was a Member of the

Board of the Country's Central Bank (Reserve Bank of India). In recognition of his
contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by
the Union Government.

Corporate Governance

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

This Company is committed to benchmarking itself with global standards for


providing good Corporate Governance. It has put in place an effective Corporate
Governance System which ensures that the provisions of Clause 49 of the Listing
Agreement are duly complied with.

41 | P a g e
The Board has also evolved and adopted a Code of Conduct based on the
principles of Good Corporate Governance and best management practices being
followed globally

Headquarter and Branches

Corporate & Registered Office

Hero MotoCorp Liid

34. Community Centre, Basant Lok, Vasant Vihar, New Delhi-noos, India

Tel: 0-2643453. 26144131

Fax: +91-0-26143321, 3643195

Zonal Offices

East Zone

Address: Hero MotoCorp Lid. Flat No: 1002 10th Floor, Martin Burn Business
Park.

Flat no: 1002, 10th Floor, BP-3, Sector V. Salt Lake, Kolkata - 700091

Telephone: 033 44023829, 033 44026830, 033 44026836, 033 44026841

Email: kolkata@hermotocorp.com

West Zone

Address: M/s Hero MotoCorp Lid, Sr. No. 33, Hissa-A-1/1/2, Plot-2, Chrome
Building, Viman Nagar, Nagar Road, Next to Hotel Hindustan International,
(HHI), Punc-411 014

Telephone: +91-20-71903500
42 | P a g e
Fax: +91-020-71903599

Email: pune@heromotocorp.com

North Zone

Address: 3rd Floor, DLF Centre Court, Golf Course Road, DLP Phase 5. Sector
42. Guragram, Haryana 122002

Telephone: 91-124-4754800

Email: delhi@therumutocorp.com

South Zone

Address: Heru Mato Corp Ltd. SK AV 909, Jed Floor, # 9/1, Lavelle Road,

Bengaluru, Karnataka 560001

Telephone:-91-80-46881000

Fax: +91-80-46881099

Email: bangalore@heromotocorp.com

GRADING

GRADING POSITIVES

Market leadership, strong brand equity, professional management, high operating


efficiency and established scale economies. Strong financial profile characterized
by healthy margins, high profitability and cash generation. Potential upsides to our
estimates: (1) HMCL sustains its current market share, leveraging its brand equity,
product performance and distribution strengths: (a) industry growth exceeds our
estimates over the medium term despite existing concerns on macro-economic

43 | P a g e
scenario; (3) HMCL. betters the margins estimated by us via sustained business
growth and increases in operating efficiency even in the face of competitive and
cost pressures.

GRADING SENSITIVITIES

Key sensitivities to our estimates include:

1) inflation in input cost not being neutralized by price increase because of


competitive pressures

2)high concentration on executive segment

3)Intellying competition from Chill papers

(4) Ability to develop in-home techanical capability or for alternate technical tie-
ups with external institutions.

Profile of target customer

Hero MotoCorp basically targets the every each and segmemg of the market. So
there are some products like splendor, HF deluxe (80,000-90,000) they made for
the lower segment of the market and glamour, passion, super splendor (above
rs90000) for the upper segment of the market.

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

44 | P a g e
Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in
their product. And after selling they have the services and maintenances. Their
constant endeavor is to support the company's mandate of providing highest level
of customer satisfaction by taking good care of customer's two-wheeler service and
maintenance through their vast nerwork of more than 100 committed dealers and
service outlets spread across the country.

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

Good life: Customer Loyalty Program

Good Life is a Customer Relationship Program introduced a decade ago, which


Endeavour's to enhance customer satisfaction and initiate increased levels of
member engagement.

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

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

Besides aiming to increase the number of customer and volume of transaction, the
Program seeks to enhance revenue opportunities for dealers as well. Different
levels engagement have been in built into the Program with the aim of increasing
its people engagement initiatives. Some of these are transaction-based rewards
Invites, personal accidental insurance, service continuty bonus transaction benefits
an special occasion (birthdays, anniversaries), quarterly news letters and inaction
through a program website

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

46 | P a g e
 Order of Merit in PMAA awards son under "Best Activity Generating Short
or Long Term Brand Loyalty category.
 Colloquy Award under Innovation in Loyalty Marketing (International)
category.
 Qualified as ICHO Finalist (5th place) in an DMA International ECHO
Awards competition Loyalty Award under Auto Sector.

OPERATION RAMP-UP
With demand for bikes recording a stupendous growth of ist during the year under
review, the Company's capacities were severely strained. This prompted it to
augment its capacity at its three plants up from 54 million units to 6.15 million
during the year. This was made possible through a number of de- bottlenecking
measures. For example, the Company's plants were made leaner by outsourcing
non-critical processes and operations.

Besides this, a number of structural changes and alterations were made in its
manufacturing strategy to effectively implement its Sales Plan for 2012-13 Major
replacements were also executed in the paint and assembly shop. ensuring little or
no shutdown along the assembly line. Apart from the above measures, several
innovative technologies were inculcated to reduce operational costs. Some
examples of these are:

 A breakthrough technology for gear rolling was implemented for mass-


production
 Fine blanking, an alternate process of hobbling, was introduced for sprocket
components

47 | P a g e
 Advanced cam grinding was introduced to increase productivity and control
costs

The Company's oldest plant at Dharuhera was in the limelight for two specific
reasons.

 Wage negotiations were concluded


 Plant won TPM Excellence Award

The Company continues to set new industry benchmarks in the areas of energy
conservation and sustainability. Vapour absorption machines and heat recovery
units were installed during the year to utilize waste heat from Gas DGs for air-
conditioning and pre-heating of hot water generation. Other green initiatives
included projects on waste water management. LED lighting and solar power.
These cost leadership and green projects yielded considerable savings to the
Company within a short period of time.

48 | P a g e
PORTFOLIO OF PRODUCTS
Hero MotoCorp offers wide range of two wheeler products that include
motorcycles and scooters, and has set the industry standards across all the market
segments.

100CC

 SPLENDOR PLUS
 SPLENDOR NXG
 SPLENDOR PRO
 PASSION PRO
 PASSION XPRO
 MAESTRO
 PLEASURE
 HF DAWN
 HF DELUXE
 DUET

49 | P a g e
125CC

 Bike category
 GLAMOUR
 SUPER SPLENDOR
 Glamour xtec
 Glamour U.G.M FI

150cc

Bike category

 ACHIEVER
 KARIZMA
 KARIZMA ZMR
 IMPULSE

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 HUNK
 XTREME

TERMINATION OF HONDA JOINT VENTURE

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

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

51 | P a g e
discount and get over sı billion for its stake. The discount will be between 30% and
50% to the current value of Honda's stake as per the price of the stock after the
market closed on Wednesday. The rising differences between the two partners
gradually emerged as an irritant. Differences had been brewing for a few years
before the split over a variety of issues, ranging from Honda's reluctance to fully
and freely share technology with Hero (despite a 10-year technology tie-up that
expires in 2014) as well as Indian partner's uneasiness over high royalty payouts to
the Japanese company. Another major irritant for Honda was the refusal of Hero
Honda (mainly managed by the Munjal family) to merge the company's spare parts
business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter
India (HMSI).

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

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

52 | P a g e
DEALER PROFILE

Arundhati Motors Pvt. Ltd. HERO Show Room in Balangir

Arundhati Motors Pvt. Ltd. is one of the biggest automobile dealer in the state of
Odisha for HERO Two Wheelers.

Arundhati Motors started its journey in 7th November 2007 with HERO Sales &
Service show room at Near Check Gate, NH-201, Sambalpur Road, Balangir. Now
the company is having a chain of HERO Sales & Service set-up at different places
in Odisha starting from Balangir and then at Bhawanipatna.

At Arundhati Motors Hero, our principal focus is to exceed the needs of every
customer. With an eye for detail and in-debt knowledge of after-sales service, we
are now a highly regarded dealer of HERO MotoCorp in India.

We are devoted to ensure our customers' the most comprehensive service


experience at all times. Our well-trained team of specialists assures you leave
satisfied after every visit.

As always, we are happy to answer all your queries. Do get in touch with your
concerns or suggestions.

Arundhati Motors Pvt. Ltd dealer in Bolangir Address and contact no-
53 | P a g e
Showroom

Near Check Gate, NH - 201, SBP Road, Bolangir


767001 Odisha
Ph:06652 235858
Email:arundhati@heromotocorp.biz

CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

54 | P a g e
SURVEY ANALYSIS
STATISTICAL TOOLS

Data Collection

Data is collected with prepared questionnaire by arranging personnel interviews


when customers are taking their vehicle at the delivery counter in the Odyssey
Motors show room. Data analysis consider the manner of data collection adopted
the study analyzed the data on qualitative basis by decipher in individual opinion
various options collected from respective respondents are analyzed separately.

Data Interpretation

The data Collection from each and every user is analyzed and interpreted
individually then compared together and presented in the form of tables and charts.
In each table the total respondents for particular questions predicted among them.
The alternative answer were for the particular questions are traced. The high
percentage of the answer is taken has correct answer then the data for that answer
has been analyzed.

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4. DATA ANALYSIS AND INTEPRETATION

TABLE -4.1 SHOWING TYPE OF HERO TWO WHEELER MODELS OWNED

No of
Sl.no No of hero two wheeler respondents
1 Hf deluxe 30
2 Splendor pro 10
3 Passion pro 10
4 Glamour 16
5 Duet 4
6 Super splendor 2
7 Maestro 3
8 I smart 4
9 Pleasure 6
10 Hf dawn 5
11 Passion xpro 5
12 Xtreme 5
TOTAL 100

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Inference: From the above table it is inferred that, 30% of respondents held HF
Deluxe and 10% of respondents held Passion Pro, Splendor Pro 10%, and Glamour
g The remaining two wheelers are very less in %. The table is inferred that some of
the models are very less in market. This formed the basis of the study

CHART 4.1 SHOWING TYPE OF HERO TWO WHEELER MODELS


OWNED

NO. OF RESPONDENTS
HF DELUXE
5% SPLENDOR PLUS
5%
PASSION PRO
5% GLAMOUR
30%
6% DUET
SUPER SPLENDOR
4% MAESTRO
I SMART
3% PLEASURE
2% HF DAWN
4% PASSION XPRO
10%
XTREME
16%
10%

57 | P a g e
Table-4.2 showing the source of information about Hero

SOURCES NO OF RESPONDNETS
NEWS PAPER ADS 45
TELEVISION ADS 32
ROADSIDE BOARDINGS 12
OTHERS 11
TOTAL 100
I

INFERENCE:

From the above table it is inferred that people are getting information about hero
two wheelers from news paper ads, more than 45% of people are watching
newspaper ads. Roadside Boarding &television ads are less in performance; other
sources contain motor shows, internet ads.

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Table-4.3 showing the influenced people for buying Hero

INFLUENCED PEOPLE NO OF RESPONDNETS


FAMILYA 24
MYSELF 27
FRIENDS 32
SELF REPRESENTATIVE 17
TOTAL 100

Inference:-

From the above table it is observed that, the buying behavior people mostly
influenced by family and friends the other factor is have less level of influence.
The people how using bike mostly youth &middle class people and they are
influenced by their friends and family respectively. The above table showing that
32% of people influenced by their friends 24% people through family 27% people
is buying on their need. 17% because of sales representative.

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Chart. 4.2 showing the number of people influence for buyingTable-4-4
showing the preference of capacity &colour

NO OF RESPONDENTS
35

30

25
NO OF RESPONDENTS
20

15

10

0
FAMILY MYSELF FRIEND SALES REPRESENTATIVES

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Table 4.4 Showing The Preference Of Capacity & Colour

CAPACITY NO. OF PREFERENCE NO. OF


RESPONDENTS COLOUR RESPONDENTS
100CC 40 BLUE 28

125CC 32 RED 30

150CC 28 BLACK 42

TOTAL 100 TOTAL 100

Inference:-
From the above table it is observed that, the bike 'cc' preference is deferent
customer to customer but the 28% people like 150cc bike and 32% like 125cc and
others toocc.e preference of color 'BLACK' is rating at near to 40% of people after
that 30% like Red color 28% Blue also Other color like white getting less
importance in selection.

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Ch 4.3(1) Showing The Preference Of Capacity

No of respondents
45

40

35

30

25 No of respondents

20

15

10

0
100cc 125cc 150cc

Chart 4.3(2) Showing The Preference Of The Colour

No of respondents
45
40
35
30
25 No of respondents
20
15
10
5
0
BLUE RED BLACK

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TABLE-4.5 SHOWING RESPONSES ON VEHICLDELIVERY TIME
-
RESPONDENTS NO OF RESPONDENTS
YES(ON TIME) 78
NO(NOT ON 22
TIME)
TOTAL 100

INFERENCE

From the above table it is observed that.

 78% of respondents got delivery of their vehicle on time


 226 says that the delivery of vehicle gut delay
 After enquire about the 22% it's showing that they asked for very demand
vehicle like DELUXE PASSION &SPLENDOR bikes and some of them ask
new bike like Duet

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Chart 4.4: SHOWING THE RESPONSE ON VEHICLE DELIVERY TIME

RESPONSE ON VEHICLE SALE

YES (ON TIME)


NO(NOT ON TIME)

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Table- 4.6 showing availability test drive during on showroom visit

RESPONDNETS NO OF RESPONDENTS
YES 85
NO 15
TOTAL 100
Inference:-
From the above table it is observed that, 85% of respondents got test drive during
their showroom visit, other 15% didn't got because of two reason some of them ask
the bike that not showcase in showrooms and some of them gone small showrooms

Chart 4.5showing availability test drive during on showroom visit

Availability test drive during


on showroom visit

15%

yes
no

85%

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Table- 4.7 Showing Level of Service Satisfaction

RESPONDENTS NO. OF
RESPONDNETS
COMPLETELY 34
SATISFIED
SATISFIED 45
DISATISFIED 12
NOT AT ALL 9
SATISFIED
TOTAL 100

Inference:-

The above table shows the satisfaction towards Hero bike on the time of Service
34% of respondents are completely satisfied with the service provide by the
company and 45% customers are satisfied and 12% dissatisfied, 9% is not at all
satisfied with the service provide by the company the following chart
shows it more clearly.

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Chart 4.6-Showing Level of Satisfaction

SHOWING LEVEL OF SATISFACTION


45
40
35
30
SHOWING LEVEL OF SATIS-
25 FACTION
20
15
10
5
0
COMPLETELY SATISFIED DISSATISFIED NOT AT ALL
SATISFIED SATISFIED

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Table-4.8 showing the brand name influence in purchase

NO. OF
RESPONDNETS RESPONDANTS PERCENTAGE
YES 80 80%
NO 20 20%
TOTAL 100 100%

Inference:-
From the above table it is observed that, the customers are influenced by the brand
name "HERO MOTOCROP 80% of respondents are influence by the brand name
and 20% are not the brand "HERO" is the most selling bike in India and its is the
brand that selling more bike in the world also

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Chart 4.7 Showing The Brand Name Influence In Purchase

BRAND NAME INFLUENCE

YES
NO

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TABLE 4.9 showing how long customer using hero two wheelers
TIME PERIOD NO OF RESPONDNETS
LESS THAN 1 YEAR 12
1-2 YEAR 23
2-5 YEAR 40
MORE THAN 5
YEAR 25
TOTAL 100

INFERENCE:
This Shows For How Long Customers Are Using Hero Bike I.E 12% People Are
Using From Less Than 1 Year While 23%,40%,25% People Are Using It Feom
More Than 1-2 Year.

Chart 4.8 Showing How Long Customer Using Hero Two Wheelers

HOW LONG CUSTOMER USING HERO BIKE

LESS THAN 1 YEARS

1-2 YEARS HOW LONG CUSTOMER USING


HERO BIKE

2-5 YEARS

MORE THAN 5 YEARS

0 5 10 15 20 25 30 35 40

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Table-4.10 Showing The Area That Customer Demanding To Improve In
Service

NO OF
AREA RESPONDNETS
SERVICE IN TIME 35
RELIABLE SERVICE 20
WELL TRAINED
MECHANICS 23
LESS LABOUR CHARGE 22
TOTAL 100

Inference:-

From the above table it is observed that, what is customer need that Hero wants to
improve, 35% need improvement in service in time, 20% in reliable service, and
23% need well trained mechanics, 22% less labor charge.

CHART 4.9 Showing The Area That Customer Demanding To Improve In


Service

CUSTOMER DEMANDING IMPROVE IN SERVICE

LESS LABOUR CHARGE

WELL TRAINED MECHANICS CUSTOMER DEMANDING IMPROVE


IN SERVICE

RELIABLE SERVICE

SERVICE IN TIME

0 5 10 15 20 25 30 35

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Table-4.11 showing the rating of Service Performance of Hero Motors

NO OF
RESPONSE RESPONDNETS PERCENTAGE
VERY GOOD 34 34%
GOOD 22 22%
AVERAGE 34 34%
BAD 8 8%
VERY BAD 2 2%
TOTAL 100 100%

Inference:

From the above table it is observed that, 34% of customer says service
performance gives by Hero MotoCorp Ltd, is very good and 22% says it's good.
34% says the service is average, 8 respondents says the service is bad and 2% says
it's very bad, To overall we can conclude that more than 85% is satisfied with the
service provide by Hero MotoCorp Ltd.

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CHART 4.10 -showing the rating of Service Performance of Hero Motors

RATINGS OF HERO MOTOCORP.

VERY BAD

BAD
RATINGS OF HERO MOTOCORP.
AVERAGE

GOOD

VERY GOOD

0 5 10 15 20 25 30 35

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CHAPTER-5
SUMMARY OF FINDINGS SUGGESTION
RECOMMENDATIONS CONCLUSION

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SUMMARY OF FINDINGS
1. The Hero MotoCorp is leading the market. The difference is too big to cope up
with, for any manufacturer in short span. With proven products and many people
having faith in brand, it is quite a difficult task for others to take the Hero's number
one position.

2. Hero MotoCorp India's no. 1 two wheeler companies have posted growth of
11.01% in the month of May 2015 compared to May 2016.

3. Ability to understand customer's needs and wants, maintenance cost is low.

4. HF Deluxe Passion Pro, Splendor Plus, are the two models that Hero MotoCorp
selling a big number

5. The News Paper ads are more influence the customer behavior of two wheeler
sector.

6. The purchase desiccations of consumers are influence by friends and family

7. Blue, Red, Black color bike with 150 cc to 200cc is fast moving

8. Most of the despondences are agree that the bikes are delivering proper time.

9. The service provide by Hero MotoCorp is satisfied by more than 80% of


customers.

10. Brand name of Hero is still good in market after split with Honda, 74% of
people like the brand "HERO"

11. Quality, price, Brand image, Fuel efficiency is getting equal importance in
satisfaction

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12. The research showing that consumer want to get more service satisfaction.

13. 82% of the customer likes to recommend Hero two wheeler to their friends, its
shows they are satisfied with the bike.

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SUGGESTIONS

It is very hard to hold the pulse of a customer in the market. Customer's


satisfaction is different for different people at different situations;

 Majority of the respondents were still unaware about different


versions of Hero bikes.
 Few of the customers expressed concern over frequency of the
maintenance & service problems faced by their vehicle and expressed
'high satisfaction' over it.
 Majority of respondent face problem at the time of servicing
 Hero wants to develop more promotion for there some models like sports
bike and gear less scooter
 Hero MotoCorp Ltd should try to give more advertisements in news paper,
bill boards in that area to enable easy recall of the people for
Hero MotoCorp Ltd.

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RECOMMENDATIONS

 The company personals should take initiative to create awareness about


Different versions Of hero bikes

 The company should re look at the vehicle & re-develop in order to stop the
Frequency of the Problems.

 The company should improve work on their quality of services.

 Hero bikes want to increase their export market.

 The company should plan and improve their area of advertising to increase
the sale for the dealer.

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CONCLUSION

Customer satisfaction is a marketing tool and a definite value added benefit. It is


often perceived by customers as important as the primary product or service your
organization offers.

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

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

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BIBLIOGRAPHY

TEXT BOOK REFERRED

Kotler Philip, Marketing Management

MAGAZINES

Auto India

Bike India

Business standards

Business Today

Over Drive

NEWS PAPER

Business Standard

Business Times

Economics Times

The Times of India

WEBSITE

www.heromotocorp.com

www.bikedekho.com

www.autocarindia.com

www.carandbike.com
80 | P a g e
ANNEXURE

I am Abhishek Agrawal final year B.Com student from JSM

COMMERCE COLLEGE, BALANGIR. This information is required

for successful completion on my project "A STUDY ON CUSTOMER

STATISFACTION TOWARDS HERO MOTORS IN BALANGIR". I

request you to kindly spare some of your time and fill the

questionnaires below.

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RESPONDENT'S DETAILS

Dear Customer,

1 Abhishek Agrawal Student of B.Com Final Year of JSM


COMMERCE COLLEGE doing a project work on consumer
satisfaction towards hero motors in Arundhati motors in Balangir for my
academic purpose. I request you to kindly fill this questionnaire.

Name: - ____________________________________________

Profession:-__________________________________________

Address:- ___________________________________________

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QUESTIONNARIES

Q1. Which type of hero two wheelers models have you owned?

a. HF DELUXE

b. GLAMOUR

C. CBZ XTREAM

d. PASSION PRO

Q2. From where did you get the source of information about HERO?

a. News paper ads

b. Television ads

c. Roadside boarding's

d. Others

Q3. Who have influenced you for buying HERO bikes?

a. Family

b. Myself

c. Friend

d. Sales Representative

Q4. What was the capacity and color preferred?

a. 100cc with Blue colour

b. 125cc with Red colour

c. 150cc with Black colour

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Q5. Is the vehicle delivered on time?

a. No ( )

b. Yes ( )

Q6. Have you got a test drive before buying the vehicle?

a. Yes ( )

b. No ( )

Q7. How reliability is your bike?

a. Satisfactory ( )

b. Excellent ( )

c. Unsatisfactory ( )

d. Good ( )

Q8. Are you satisfied with the vehicle?

a. Completely Satisfied

b. Dissatisfied

c. Satisfied ( )

d. Not at all Satisfied ( )

Q9. Were you influenced by the brand name?

a. Yes ( )

b. No ( )

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Q10. What is the reason that you preferred this vehicle?

a. Quality ( )

b. Brand Image ( )

c. Price ( )

d. Fuel efficiency ( )

85 | P a g e

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