Abhishek Project
Abhishek Project
Abhishek Project
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
Place:
Date:
FACULTY OF COMMERCE
BALANGIR, ODISHA
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DECLARATION
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
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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
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.
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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."
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.
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FACTORS OF CUSTOMER SATISFACTION
1. Service of quality
2. Reliability of service
6. The way the service handled any problem with friendliness of staff
8. Speed of enquiries
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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.
REVIEW OF LITERATURE
Satisfaction:
Customer's satisfaction:
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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.
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 .
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SCOPE AND LIMITAIONS OF THE STUDY
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.
3. Since the study involved in gathering information was from upper to higher-
middle class people, interaction with them was difficult.
5. Even though utmost care has been taken in conducting the survey, the findings
may sometimes differ from the population.
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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.
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.
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.
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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.
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.
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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 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:
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Fourth largest tractor marker
Fifth largest commercial vehicle market
Fifth largest bus and truck segment
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.
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.
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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.
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.
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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.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted
in a decline of 15% in 1991 and 8% in1992, resulting in the production loss of
0.4mn vehicles. Barring Hero Honda, all the major producers suffered from
recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel price, high
input costs and reduced purchasing power due to significant rise in general price
level and credit crunch in consumer financing. Factors as if increased production in
1992, due to new entrants coupled with the recession in the industry resulted in
either company reporting losses or fail in profits. India is one of the very few
countries manufacturing three wheelers in the world. It is the world's largest
manufacturer and seller of three wheelers. Bajaj Auto commands a monopoly in
the domestic market with a market share of above 80%. Bajaj Tempo, Greaves Ltd
and Scooters in India share the rest.
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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.
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CHAPTER-3
COMPANY PROFILE
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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.
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
Humility
Persistence and striving towards perfections in all our actions, products and
services
Speed
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
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.
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
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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
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DIRECTORS AND HEADQUARTER OF HERO
MOTOCORP
Directors
Board of Directors
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MR. VIKRAM S KASBEKAR Executive director
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.
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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
34. Community Centre, Basant Lok, Vasant Vihar, New Delhi-noos, India
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
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
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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,
Telephone:-91-80-46881000
Fax: +91-80-46881099
Email: bangalore@heromotocorp.com
GRADING
GRADING POSITIVES
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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
(4) Ability to develop in-home techanical capability or for alternate technical tie-
ups with external institutions.
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.
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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.
The main objective of this Program is to make our customers our Brand
Ambassadors to generate referral sales and boost service visits.
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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
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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:
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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.
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.
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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
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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
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
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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.
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DEALER PROFILE
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.
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-
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Showroom
CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION
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SURVEY ANALYSIS
STATISTICAL TOOLS
Data Collection
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
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
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%
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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
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
125CC 32 RED 30
150CC 28 BLACK 42
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
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
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Chart 4.4: SHOWING THE RESPONSE ON VEHICLE DELIVERY 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
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
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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
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
2-5 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.
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
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.
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.
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.
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
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RECOMMENDATIONS
The company should re look at the vehicle & re-develop in order to stop the
Frequency of the Problems.
The company should plan and improve their area of advertising to increase
the sale for the dealer.
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CONCLUSION
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
MAGAZINES
Auto India
Bike India
Business standards
Business Today
Over Drive
NEWS PAPER
Business Standard
Business Times
Economics Times
WEBSITE
www.heromotocorp.com
www.bikedekho.com
www.autocarindia.com
www.carandbike.com
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ANNEXURE
request you to kindly spare some of your time and fill the
questionnaires below.
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RESPONDENT'S DETAILS
Dear Customer,
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?
b. Television ads
c. Roadside boarding's
d. Others
a. Family
b. Myself
c. Friend
d. Sales Representative
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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 ( )
a. Satisfactory ( )
b. Excellent ( )
c. Unsatisfactory ( )
d. Good ( )
a. Completely Satisfied
b. Dissatisfied
c. Satisfied ( )
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 ( )
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