31376092 Advertising and Sales Promotion in Hero Honda and Comparative Study

7/31/2019 31376092 Advertising and Sales Promotion in Hero Honda and Comparative Study

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EXECUTIVE SUMMARY

"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The

founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation

entrepreneur. He is a man who started small, dreamt big and used a combination of grit and

perseverance to create one of the country's largest corporate groups and the World's No.1 Two

Wheeler Company.Instinctive from a young age, Brijmohan Lall made a rather unusual start in

life. Around the time when the freedom movement in India was taking shape in the late 1920s,

he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now

in Pakistan). He was only six years old then.

Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business

story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a

company that provided poor people with basic transport (cycles). Three decades later, as India

evolved, he added a second crucial chapter - which visualized affordable and technologically

superior transport to millions of middle class Indians. The rest is history.

Staying Ahead

Though not technically qualified in the conventional sense, few of his contemporaries have

understood the dynamics of technology better than Brijmohan Lall has. He could always

visualize the applicability of technology before others could. For example, in the 1980s, when all

two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a

four-stoke engine - a technology that dramatically increased fuel efficiency and reduced

maintenance costs. This technology was one of the biggest reasons for Hero honda's stupendous

success.Time and again, Brijmohan managed to steal a march over his industry peers. For

example, when Hero hero honda Motors of Japan was looking for a collaborator in the 1980s, the

Hero Group was not high up the pecking order initially as there were other more eligible and

established suitors.Yet it didn't take long for the astute Japanese to realize that the Hero Group

and Hero hero honda had much more in common than earlier perceived; there a sharp focus on

financial and raw material management, and employee turnover was low. Hero hero honda

officials were also amazed to find that the Munjals were already practicing "Just-in-time-

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inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to provide cheap

transportation to India's poor by default ensured lean and cost-effective operations. This in turn

increased vendor efficiency and led to near-zero inventories.

Sales Promotion.

Sales promotion is any initiative undertaken by an organisation to promote an increase in sales,

usage or trial of a product or service (i.e. initiatives that are not covered by the other elements of

the marketing communications or promotions mix). Sales promotions are varied. Often they are

original and creative, and hence a comprehensive list of all available techniques is virtually

impossible (since original sales promotions are launched daily!). Here are some examples of

popular sales promotions activities:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-liquidating promotion.

For example if a loaf of bread is priced at $1, and cost 10 cents to manufacture, if you sell two

for $1, you are still in profit - especially if there is a corresponding increase in sales. This is

known as a PREMIUM sales promotion tactic.

(b) Customer Relationship Management (CRM) incentives such as bonus points or money off

coupons. There are many examples of CRM, from banks to supermarkets.

(c) New media - Websites and mobile phones that support a sales promotion. For example, in the

United Kingdom, Nestle printed individual codes on KIT-KAT packaging, whereby a consumer

would enter the code into a dynamic website to see if they had won a prize. Consumers could

also text codes via their mobile phones to the same effect.

(d) Merchandising additions such as dump bins, point-of-sale materials and product

demonstrations.

(e) Free gifts e.g. Subway gave away a card with six spaces for stickers with each sandwich

purchase. Once the card was full the consumer was given a free sandwich.

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(f) Discounted prices e.g. Budget airline such as EasyJet and Ryanair, e-mail their customers

with the latest low-price deals once new flights are released, or additional destinations are

announced.

(g) Joint promotions between brands owned by a company, or with another company's brands.

For example fast food restaurants often run sales promotions where toys, relating to a specific

movie release, are given away with promoted meals.

(h) Free samples (aka. sampling) e.g. tasting of food and drink at sampling points in

supermarkets. For example Red Bull (a caffeinated fizzy drink) was given away to potential

consumers at supermarkets, in high streets and at petrol stations (by a promotions team).

(i) Vouchers and coupons, often seen in newspapers and magazines, on packs.

(j) Competitions and prize draws, in newspapers, magazines, on the TV and radio, on The

Internet, and on packs.

(k) Cause-related and fair-trade products that raise money for charities, and the less well off

farmers and producers, are becoming more popular.

(l) Finance deals - for example, 0% finance over 3 years on selected vehicles.

Many of the examples above are focused upon consumers. Don't forget that promotions can be

aimed at wholesales and distributors as well. These are known as Trade Sales Promotions.

Examples here might include joint promotions between a manufacturer and a distributor, sales

promotion leaflets and other materials (such as T-shirts), and incentives for distributor sales

people and their retail clients.

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OBJECTIVES

To have an overview of HERO HONDA BIKES.

To know the reputation of HERO HONDA BIKES in the market.

How the consumer preference towards the brand HERO HONDA BIKES.

The main objective how to increase the reputation of HERO HONDA BIKES brand in

the market.

To understand its competitors in business.

How HERO HONDA BIKES will create a good image in the market.

To understand the 4 Ps used by the HERO HONDA BIKES in business.

A study of present & potential various market of HERO HONDA BIKES.

It has been based on a survey over the market and other behavior aspect.

The survey is also aimed at reviewing the competitiveness of various HERO Hero hero

honda bikes toward the YOUNG BIKE RIDER.

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RESEARCH METHODOLOGY

Methodology can be defined as a systemic way of approaching a problem to identify the truth

and for this certain step should be taken in a systematic order and these steps are called methods.

Research methodology is a process of planning, acquiring, analyzing and disseminating relevant

data and information.

The use of right methodology is necessary because if the right methods are not adopted and

thoughts are not arrange in a logical order the exact truth might not be expressed. Thus the

methodology means correct arrangement of thoughts and knowledge.

WHY RESEARCH IS REQUIRED

Conceptually, the purpose of research is to discover the answers for the questions through

application of scientific procedures. The main aim of the research is to find out the truth which is

hidden and which has not been discovered yet.

Through each research study has its own specific purpose, but generally researchers are done:

To gain familiarities with a phenomenon or to achieve new insights into it.

To determine the frequency with which something occurs or with which associated with

something else.

To test the hypothesis of casual relationship between variables.

To take appropriate decisions.

Research is a careful and systematic effort of gaining new knowledge. Research is an original

contribute on to the existing stock of knowledge making for its advancement; it is pursuit of true

with the help of study, observation, comparison and experiment.

In short the search of knowledge through objectives and systematic method of finding solution to

problem is research.

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RESEARCH DESIGN:

The research design is the plan, structure and strategy of investigation conceived so as to obtain

answer to research questions and to control variance.

The definition of three important terms plan, structure and strategy.

The plan is an outline of the research scheme on which the researcher is to work. The structure

of the research is a more specific outline or the scheme and the strategy shows how the Research

will be carried out, specifying the methods to be used in collection and analysis of data.

Research design is the specification of methods and the procedure fro acquiring the information

needed. It is the operational pattern or framework of the projects that stipulate what information

is to be collected from which sources by the procedures. The importance of research design lies

in the fact that it makes a statement of what is to be done in order to achieve the research

objectives and how it is to be done. It is an expression of what of the research exercise in terms

of results and the analytical input needed to convert data into research findings.

A design may be quite suitable in one case but could not fit in some other research problem. One

design cannot serve the purpose of all types of research problems. Also most of the research

problems are complex in nature and cannot be solved by a specific research design. Hence a

combination of research design is used to reach a solution.

The research design when chosen correctly prevents deviation in the study. The present study is

the cross sectional descriptive type with fields study and partly casual in nature as it seeks to find

out consumer behavior with respect to mobile and correlate them with income, age, education,

professions etc. and formulate marketing strategies based on the study.

SAMPLING AND SAMPLE DESIGN:

It is not possible to examine every item in the population hence interferences is drawn about a

large numbers of items possessing a particular attribute based on based analysis of fraction of

such items. It is called a sample. For developing a sampler design following points need to be

discussed with regard to the present study

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POPULATION:

In statistical usage the terms population is applied to any finite collection of individuals. It has

displaced the orders terms universe. It is aggregate of all elements possessing certain specified

characteristics which need to studied and defined prior to sample. Population can be finite if

units can be counted or infinite. Since the present study is done in Bareilly, The population is

finite. Population can be defined in terms of elements, sampling units, extent and time.

In this study, the specifications will be as follows:

1. Element : People

2. Sampling Units : Distributors

3. Extent . :

ELEMENT:

An Element is the unit about which information is collected. It provides the basis for analysis. It

identifiable physically. In the present study the element is dealer having a good knowledge about

the service. (Regarding Brand)

SAMPLING UNIT:

The sampling unit is the basic unit containing the element of the target population. The sampling

may be different from the element. It can be either geographical unit (state, district etc.) or social

unit (Household, family, club etc.) or a construction unit (enclave, house, flat etc.) or it may be

an individual. In the present stuffy, a sample of distributor is selected in the three stages. First of

all a sample of cities is selected, than a sample of colonies is selected from each selected colony

after the entire distributor in it.

SAMPLE FRAME:

A sample frame could be a telephone directory, a list of block and localities of a city, a map or

any other list consisting of all the sampling units, each stage of sampling process requires its own

sampling frame. Since the present study undergoes two stages sampling process, we would need

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two sampling frames. First a list of localities, Second a list of distributors with in the selected

localities.

SAMPLING DESIGN: Representation of entire universe is only possible through the sampling

technique. Considerable care has been taken in selecting the sample so that is Convenient in

terms of size and enough to represent the entire universe

SUMMARY OF RESEARCH DESIGN

Data source: Primary and secondary

Research approach: Survey method

Research instrument: Questionnaire

Sampling plan: Sample unit (consumers)

Sample size: 100 consumers

Sample area: Bareilly city and near area

Contact method: Personal contact

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STUDY OF THE COMPANY

COMPANY PROFILE

The Hero honda story began with a simple vision the vision of a mobile and an empowered

India, powered by Hero honda. This vision was driven by Hero honda's commitment to

customer, quality and excellence, and while doing so, maintain the highest standards of ethics

and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero honda is

closer to fulfilling this dream. This vision is the driving force behind everything that we do at

Hero honda. We understood that the fastest way to turn that dream into a reality is by remaining

focused on that vision.

There were many unknowns but we kept faith, and today, Hero honda has been the largest two

wheeler company in the world for eight consecutive years. Our growth has kept compounding.

The company crossed the ten million unit milestone over a 19-year span. In the new millennium,

Hero honda has scaled this to 15 million units in just five years! In fact, during the year inreview, Hero honda sold more two wheelers than the second, third and fourth placed two-

wheeler company put together. With Hero honda, the domestic two wheeler market was able to

show positive growth during the year in review. Without Hero honda, the domestic market would

have actually shrunk.

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Over the course of two and a half decades, and three successive joint venture agreements later,

both partners have fine-tuned and perfected their roles as joint venture partners. What the two

partners did was something quite basic. They simply stuck to their respective strengths. As one

of the world's technology leaders in the automotive sector, Hero hero honda has been able to

consistently provide technical know-how, design specifications and R&D innovations. This has

led to the development of world class, value - for- money motorcycles and scooters for the

Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility

of creating world-class manufacturing facilities with robust processes, building the supply chain,

setting up an extensive distribution networks and providing insights into the mind of the Indian

customer. Since both partners continue to focus on their respective strengths, they have been able

to complement each other. In the process, Hero honda is recognized today as one of the most

successful joint ventures in the world. It is therefore no surprise that there are more Hero honda

bikes on this country's roads than the total population of some European countries put together!

The company's meteoric growth in the two-wheeler market in India stems from an intrinsic

ability to reach out and come closer to its customers, with every passing year. Hero honda's bikes

are sold and serviced through a network of over 3500 customer touch points, comprising a mix

of dealers, service centres and stockists located across rural and urban India. Hero honda has

built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its

third and most sophisticated plant at Haridwar has just completed a full year of operations. It is

difficult to imagine that all this has happened in the span of just two and a half decades!

The best is yet to come. During the year in review, Hero honda powered its way in a market that,

for all practical purposes, was feeling the full effects of the economic slowdown in India. With

an economic recovery now clearly on the cards, Hero honda is all set to ride into another summit.

As Brijmohan Lall Munjal, the Chairman, Hero honda Motors succinctly puts it, "We pioneered

India's two wheeler industry, we've steered it through difficult times; now it is our responsibility

to set the pace again.

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Vision & Mission HERO HONDA BIKESs

Hero hondas mission is to strive for synergy between technology, systems and human resources,

to produce products and services that meet the quality, performance and price aspirations of its

customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero honda to new heights in excellence and helps the organization

forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S VISION

Hero honda is a world leader because of its excellent manpower, proven management, extensive

dealer network, efficient supply chain and world-class products with cutting edge technology

from Hero hero honda Motor Company, Japan. The teamwork and commitment are manifested

in the highest level of customer satisfaction, and this goes a long way towards reinforcing its

leadership status.

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LITERATURE REVIEW

STUDY OF THE INDUSTRY

CODE OF CONDUCT

FOR DIRECTORS AND SENIOR MANAGEMENT

I. INTRODUCTION

This Code of Conduct has been adopted by the Board of Directors of Hero honda Motors

Limited for its members and the Senior executives one level below, the Directors, including all

functional heads (hereinafter referred to as "Specified employee").

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There are certain clauses of the Code, which are meant for Directors only such as attending

meetings of the Board and Committee thereof. The Specified employees need to ignore such

clauses.

The principal duty of the Board of Directors, along with management, is to ensure that the

Company is well managed in the interests of its shareholders. The Board of Directors plays the

central role in the Company's governance. It is the Company's decision-making authority on all

matters except those reserved to shareholders or delegated to the management. The Board of

Directors is not expected to assume an active role in the day-to-day management of the

Company.

II. GUIDELINES FOR CONDUCT

Each director and Specified Employees seek to use due care in the performance of his/her duties,

be loyal to the Company, act in good faith and in a manner such Director and Specified

employee reasonably believes to be not opposed to the best interests of the Company. A Director

and Specified employee should seek to also:

Make reasonable efforts to attend Board and committee meetings.

Dedicate time and attention to the Company.

Comply with all applicable laws, regulations, confidentiality obligations and corporate policies

of the Company.

Be independent in judgement and actions and to take all reasonable steps to be satisfied as to the

soundness of all decisions taken by the Board of Directors.

III. CORPORATE BUSINESS OPPORTUNITIES

In carrying out their duties and responsibilities, Directors and Specified employees should avoid:

Appropriating corporate business opportunities for themselves that are discovered through the

use of Company property or information or their position as Directors and Specified employees.

Using Company property or information, or their position as Director and Specified employees,

for personal gain. Competing with the Company.

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Comparative study of hero Honda bikes

Karizma ZMR FI

The most awaited bike by the YOUNGISTAAN of India is now setting the STREETS ON FIRE.

The EXPERIENCE & EXPERTISE of Indian BIKING GIANT Hero Honda has launched an all

new AVTAAR of KARIZMA. A stunning looking +is giving SEDATE competition to Bajaj

Pulsar 220 and Yamaha CBR. A bold ZMR logo on the full front body colored fairing catches

the eye. Get a ZMR to RIDE THE EXPERIENCE & RISE ABOVE ALL.

Company Segment Maximum Power

Honda Motorcycle 225 cc 17.6bhp @ 7000rpm

Striking Features

Visor Mounted Collapsable Rear view Mirrors

New sporty full body cowl

Blistering Integrated LED tail light

Sporty alloys

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Fully Digital Console

Tubeless Tyres

Color Options

Moon Yellow

Vibrant Blue

Pearl White

Sports Red

Price

Price (Ex-Showroom Delhi): Rs. 91,000/-.

(Please Note: The prices are ex-showroom and based on the close approximation. Please check

the latest prices and variant specifications with your dealer)

Technical Specifications

Dimensions & Weight

Length (mm) 2110

Width (mm) 805

Height (mm) 1175

Wheelbase (mm) 1350

Ground Clearance (mm) 159

Kerb weight 159 kg

Fuel Capacity 15.3

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Engine

Engine Capacity 225cc

Type OHC, Oil Cooled

Stroke 4-stroke

No. of cylinders Single Cylinder

Electrical 12 V, 6.0 A MH Battery

Transmission

No. of Gears 5 speed

Clutch Multi-plate wet type

Performance

Maximum Power 17.6bhp @ 7000rpm

Max. Torque 18.35 @ 6000rpm

Start Electric

Maximum Speed 126 KMPH

Suspension

Front Telescopic Hydraulic shock absorbers

Rear Swing arm with 5 step adjustable type hydraulic shock absorber

Brakes

Front Disc Brakes, 276 mm diameter

Rear Disc Brakes, 240 mm diameter

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Tyres Size

Front 80/100 X 18 47 P - Tubeless Tyres

Rear 100/90 X 18 56 P - Tubeless Tyres

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Hero Honda Karizma

Jet Set Go...

Check out the all new sporty, stylish and brawny Hero Honda Karizma loaded with lots of

attention grabbing features. Bold graphics, astonishing power of 223 cc from air cooled, 4 stroke

engine, very stylish visor, large alloy wheels, very effective front disc brake makes Karizma a

spectacular sports bike to rule the roads and leave others envy.

Hero Honda Karizma was the first real sports bike in India. The bike addresses to those whohave a passion for speed and styling and head-turning looks. It has 17 ps power thrust and picks

up 0-60 in 3.8 heart-stopping seconds. The bike is based on power and styling. Disc breaks and

Mag wheels makes Karizma the safest jet on the road.

Company Stroke Maximum Power Displacement

Hero Honda Motors Ltd. 4-Stroke 16.8 bhp @ 7000 rpm 223 cc

Striking Features

Style

Sporty position of the seat.

It stands on its feet even at speeds reaching up to 130 kmph.

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Fuel Efficiency.

Color

Pearl Composed Red

Myth Gold Metallic

Sparkling Silver

Turquoise Blue

Candy Blazing Red

Black

Moon Yellow

Price

Rs 79,000 Ex-Showroom in Delhi.

(The prices are to the close approximation. Please check the latest prices and variantspecifications with your dealer.)


Dimensions & Weight

Overall height 1160 mm

Overall length 2125 mm

Overall Width 755 mm

Wheelbase 1355 mm

Ground Clearance 150 mm

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Kerb weight 150 kg

Fuel Tank Capacity 15 litres

Engine

Type OHC, Air Cooled

Stroke (2/4) 4-stroke

No. of cylinders Single Cylinder

Displacement 223cc

Electrical 12 V, 7.0 Ah

Transmission

No. of Gears 5 speed

Clutch Multi-plate wet type

Performance

Maximum Power 16.8bhp @ 7000rpm

Max. Torque -

Start Kick / Electric

Suspensions

Front Telescopic Hydraulic Shock Absorbers

Rear Swing arm with 5 step adjustable type hydraulic shock absorber

Front Disc Brakes, 276 mm diameter

Rear Internal Expanding Shoe, 130 mm

Tyres

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Front 2.75 x 18 - 42 P

Rear 100 / 90 x 18 - 56 P

Hero Honda Hunk

Because Muscles Matter

Here comes the muscular Hunk courtesy Hero Honda. The irresistible roadster carrying massive

on road appearance and armed with large fuel tank, dazzling head light with dashing visor, the

revolutionary GRS suspension & sporty dressing to turn the heads. The heavily loaded 150 cc

bike is equipped with Advanced Microprocessor Ignition System (AMI) for generous

performance.

Hero Honda Motors Ltd. (HHML), India's leading two wheeler manufacturer, has launched its

new offering as Hunk in the 150 cc segment. This new bike is the fourth launch in the premium

segment after 156 cc CBZ Xtreme, 150 cc Achiever and 225 cc Karizma. Hero Honda Hunk

carries robust looks and muscular styling with big tank shrouds, 5 spoke black alloy wheels,

telescopic fork suspension and new GRS (Gas Reservoir Suspension) at rear. Hunk is powered

with 150cc engine that generates 14.4Ps at 8500rpm of power and 12.8Nm of Torque.

Hero Honda has launched the 150 cc Hunk in two variants of kick start and self start with the

price tag of Rs. 55,000 and 57,000 respectively. The all new Hunk is available in four colours -

black, blue, red and silver.

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With the launch of Hunk Hero Honda aims to make its premium position in this segment. On the

launch of Hunk, Pawan Munjal, Managing Director and CEO, HHML, said "The 'Hunk' is our

tribute to the Youth of India today - confident and ready to take on the world. It personifies the

very fighting spirit and resilience of our youngsters, who are making a mark for themselves in

their chosen fields of vocation. Some of the key findings of our extensive research amongst the

youth have been incorporated into the 'Hunk' to make it a complete package of world class

technology, unprecedented features and stunning looks. I am sure there will be many more

'Hunks' on Indian roads soon."

Company Stroke Displacement Maximum Power

Hero Honda Motors Ltd. 150 cc 149.2 c.c 14.4 ps @ 8500 rpm

Striking Features

Robust masculine looks with strong presence

Gas charged, adjustable rear shock absorber

Fuel efficient and powerful Advanced Tumble Flow Induction (ATFI) Technology engine

Convenient, safe and effortless kick start

Large fuel tank and aerodynamic tank Shrouds

Stylish, clear lens multi reflector indicators

Puncture resistant tuff -up tube.

Available in 04 sizzling colors and options of kick start and self start

Color

Black

Blue

Red

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Silver

Price

Hero Honda Hunk is available in two variants of kick start and self start with the price tag of Rs.

55,000 and 57,000 respectively.

(Please Note: The price range is ex-showroom and based on the close approximation. Please

check the latest prices and variant specifications with your dealer)

Quotes-Unquotes

"The Hunk would complete our product portfolio in the premium segment. From our models in

the premium segment, we are expecting highest numbers from the Hunk"

Said, Hero Honda Motors Limited Managing Director Pawan Munjal.


Dimensions & Weight

Length (mm) 2080

Width (mm) 765

Height (mm) 1095

Wheelbase (mm) 1325

Kerb Weight (kgs) 145


Engine

Model Designation Air Cooled, 4 - Stroke Single Cylinder OHC

Starting Self Start/Kick Start

Displacement (cc) 149.2

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Ignition Advanced Microprocessor Ignition System (AMI)

Bore & Stroke 57.3 X 57.8 mm

Suspension

Front Telescopic Hydraulic Shock Absorbers

Rear 5 Step Adjustable Gas Reservoir Suspension - GRS

Brakes

Type Disc: 240 mm Dia Disc - Non Asbestos Type

Rear Internal Expanding Shoe Type (130 mm), Non Asbestos Type.

Tyres

Front 2.75 X 18 42P

Rear 100/90 X 18 - 56P (With Tuff-up Tube)

Fuel Tank 12.4 Litre

Performance

Max. Horsepower (ps/rpm) 10.6 Kw (14.4 Ps ) @ 8500 rpm

Max. Torque (kg m/rpm) 12.80 N-m @ 6500 rpm

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Hero Honda CBZ X-Treme

Live Extreme

The legendary model of CBZ has got a new face & new name of CBZ Xtreme with extreme

power and styling. Hero Honda has launched this fully loaded bike in wake of rising contest in

150 cc bikes segment from the other players like TVS and Bajaj. Totally revamped CBZ Xtreme

bears highly efficient and capable engine and aerodynamic looks that convert this bike into a

Xtreme driving pleasure.

World's biggest two wheeler maker Hero Honda Motors Ltd. has launched CBZ X-treme in the

150 cc segment. Facing tough competition from its key rivals Bajaj Auto and TVS Motors, the

Hero Honda company has unveiled this model in the new avatar of CBZ. The CBZ launched in

1999 was a very popular and stylish bike. The all new CBZ X-treme model has been developed

with the efforts of the R&D team of Hero Honda. CBZ Extreme powered by 150 cc engine that

generates 14 ps of power @ 8500 rpm, this makes CBZ Extreme the most powerful bike in this

segment.

The powerful CBZ X-treme is equipped with loads of features. Diamond-frame type tubular

chassis, box-section swing arm, adequate ground clearance of 145 mm with stepped up pillion

seat and split grab rail provides the extreme driving pleasure for rider and the pillion rider. This

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new offering from Hero Honda comes with disc brake and 5 spoke alloy wheel as standard

fitment.

Launched in two variants with kick-start and self-start option, CBZ X-treme is up for sale with a

ex-showroom price tag of Rs. 54,000-56,000.

Company Segment Displacement Maximum Power

Hero Honda Motors Ltd. 150 cc 149.2 c.c 10.6 KW ( 14.4 ps) @ 8500 rpm

Striking Features

Powerful engine of 150 cc with 14 ps of power @ 8500 rpm..

Loaded with AMI - Advanced Microprocessor Ignition System.

Advanced braking system of Disc brake on front wheel.

Step seat comfortable ride.

Multi-reflector winkers and LED tail light with unique split rear grip gives the bike a sporty and

trendy looks.

New age asymmetric instrument panel in dual tone finish.

05 spoke alloy wheels gives the bike an appealing looks.

Good looking wiser with tinted windshield.

Multi-reflector headlight with separate pilot lamp.

Color

Sports Red

Candy Blazing Red

Boon Silver Metallic

Black

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Vibrant Blue Metallic

Price

Price for two variants of kick-start and self-start for CBZ X-treme is Rs 54,000 and Rs 56,000.

Both the variants comes with alloy wheel and disc brakes as standard fitment.

(Please Note: The prices are ex-showroom and based on the close approximation. Please check

the latest prices and variant specifications with your dealer)

Quotes-Unquotes

"We expect to capture the top position in the premium segment with the new bike. We are also

working on another bike in the premium segment.''

CBZ has remained a icon in the market and we expect to regain the same position enjoyed

earlier. It is the fastest bike in class and comes with a three year warranty. We have added many

features like a LED tail light, split rear seats and a pilot lamp, which are industry first in India."

Said Pawan Munjal, Managing Director and CEO, Hero Honda


Dimensions & Weight

Wheelbase (mm) 1325

Length (mm) 2080

Width (mm) 765

Height (mm) 1145


Weight (kgs) 141

Engine

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Model Designation Air Cooled, 4 Stroke OHC

Starting Self Start/Kick Start

Idle Speed 1400 rpm

Displacement (cc) 149.2cc

Ignition AMI - Advanced Microprocessor Ignition System

Bore & Stroke 57.3 X 57.8 MM

Suspension

Front Telescopic Hydraulic Shock Absorber

Rear Swing arm with adjustable hydraulic shock absorber

Brakes

Front Disc Type (dia 240 mm)

Rear Drum Type, internal expanding shoe type

Tyres

Front 2.75 X 18" 42 P (Alloy)

Rear 100/90 x 18 - 56 P (Alloy)

Fuel Tank 12.3 Lts.

Performance

Max. Horsepower (ps/rpm) 10.6 KW(14.4 PS) @ 8,500 RPM

Max. Torque (kg m/rpm) 12.80 NM @ 6,500 RPM

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Hero Honda Achiever

Hero Honda Achiever boasts cool designer graphics on a sturdy and macho body line. This 150

cc power bike has been incorporated with a 4 stroke air-cooled engine that produces an optimum

output of 13.4 bhp. Dressed with number of strong features like multi-reflector headlight,

protective visor, muffler with heat shield, tuff up tube, Hero Honda Achiever has a good treat for

biker lovers.

The Hero Honda Achiever from Hero Honda Motors Ltd. comes with twin rear shocks and

apparent air-skoops in the front below the fuel tank. It is built on 1290 mm wheelbase. The kick-

start version weighs only 139 kg. The fuel tank of the bike has a capacity of 12.5 litres with

usable reserve of 2.3 litres. The higher reserve capacity makes Achiever rural-friendly because of

lack of petrol pumps in these areas.

Company Stroke Maximum Power Displacement

Hero Honda Motors Ltd. 4-Stroke 10 kw (13.4bhp) 149.1cc

Striking Features

A multireflector headlight with a halogen lamp and a position lamp.

Uniquely designed Muffler with heat shield.

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Equipped with Tuff up tube.

Dual tone painted chain case.

The latest PowerPro engine to offer better performance.

An attractive visor.

Color

Candy Blazing Red

Black with Golden Strip

Black with Grey Strip

Maroon Metallic

Tahitian Blue Metallic

Force Silver

Moon Yellow

Magnetic Blue

Spring Violet

Price

Drum Kick - Rs. 48950

Drum Self - Rs. 51650

Disc Kick - Rs. 50740

Disc Self - Rs. 53450

(The prices are to the close approximation. Please check the latest prices and variant

specifications with your dealer.)

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Engine 4 Strok Air Cooled

Displacement 149.1cc

Maximum Power 10 kw (13.4bhp)

Gears 5 gears

Frame Diamond Cradle

Tyre Size (Front) 2.75 X 18 - 42 P / 4 PR

Tyre Size (Rear) 3.00 X 18 - 52 P / 6 PR

Headlight 35W / 35 W Halogen Bulb

Top Speed 101 kmph

Acceleration 0-60 in (5 seconds)

Kerb Weight 134 kg

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SALES PERFORMANCE

HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50 % NET PROFIT IN

Q2, '08-09

DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES & OTHER OPERATING

INCOME), AT RS. 3202 CRORE; EBIDTA AT 13.58 PER CENT

Aug'06 Aug'07 FY 06-07 FY 07-08

Total Sales 2,15,076 2,40,875 12,82,860 12,63,254

Highlights of Q2, FY'08-09

Total turnover(Net sales & Other Operating income)Rs 3202 crores, growth of 35.6 per cent

Net profit after tax at Rs 306.30 crores, growth of 50 per cent

EBIDTA margin for the quarter 13.58 per cent

Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent

Total sales for H1 stands at 18,66,349, growth of 19.7 per cent

Over 55 per cent share in domestic motorcycle market

Launches first-of-its kind music video to celebrate 25 years of Hero honda

New Delhi, October 21, 2008: Hero honda Motors Ltd (HHML), the world's largest two-wheeler

company for seven consecutive years, today firmly reiterated its undisputed leadership in the

domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2)

July to September - of this financial year (FY) 2008-09.

Even as the industry continued to face tough market conditions on account of uncertainty over

interest rates and overall credit squeeze, the company reported 50 per cent growth in profit after

tax (PAT) at Rs 306.30 crore for the second quarter. Hero honda's profit after tax in the

corresponding period last fiscal (July - Sept, 2007-08) stood at Rs 204.33 crore.

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Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore, a growth of 35.6

per cent over Rs 2361 crore recorded in the corresponding period last fiscal. The company has

recorded an EBIDTA margin of 13.58 per cent in the quarter. The EBIDTA margin in the

previous quarter (April - June '08) was 12.20 per cent.

The strong financial performance is in line with the company's better-than-industry top line

growth. After posting a growth 11.38 per cent in the first quarter, the company kicked off the

second quarter with a 39.8 per cent growth in sales in the month of July, and followed up with

26.8 per cent growth in August and 22.4 per cent in September. Hero honda consistently keeps

growing its share in the domestic motorcycle market, and currently enjoys over 55 per cent

share.

Hero honda's cumulative sales for the second quarter (Q2) this FY stands at 9,72,095 units - a

growth of 28.5 per cent over Q2 last FY (2007-08). The cumulative sales for the first six months

(H1) stands at 18, 66,339 units of two-wheelers compared to 15, 59,486 units sold in H1 in the

last FY reflecting a consistent 19.7 per cent growth in cumulative sales.

Dr. Brij Mohan Lall, Chairman, Hero honda Motors Ltd, said "We are happy with our financial

performance. It gives immense joy to see this kind of results in the 25th year of our company. I

wish to thank all our stakeholders customers, associates, dealer friends, ancillaries and also our

joint venture partners Hero hero honda Motors Co for their continuous support."

Mr. Pawan Munjal, MD & CEO, Hero honda Motors Ltd., said "Our numbers speak for

themselves. Even in this volatile and competitive environment, our top line continues to outpace

the industry growth, our market share is at an all time high, and the financial balance sheet is a

delight all the factors which form the hallmark of a resilient company with cutting-edge

management. We will continue to keep innovating in bringing in technologically-superior

products, in our network expansion, in brand building, in our financial management, and in our

communication."

"Going forward, we will have to keep a close watch on the commodity prices movement, and

other factors such as inflation, interest rate scenario and availability of retail finance. These

factors will play a crucial role in the industry growth in the subsequent quarters," he added.

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Hero honda has already rolled out its festive season initiatives, with the launch of four new

models the all-new "Passion Pro" and three refreshes of its existing models - new CBZ X-

treme, a selfstart version of Splendor NXG and the refreshed Pleasure. During the coming

months, the company will further augment its product portfolio with new launches across

segments.

Key Hero honda brands continue to drive strong volumes across segments - CD Deluxe in entry

segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and

Hunk, CBZ X-treme and Karizma in the premium segment.

Celebrating its 25th year, Hero honda released an innovative music video in the month of

September. Titled "Hero honda Dhak Dhak Go", and involving as many as eight brand

ambassadors of Hero honda, the music video has been receiving rave reviews.

Hero honda recently won two very coveted awards - "The Most preferred Brand of two-

wheelers" award at the recent CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit

Business Leadership Award".

being sold in August this year.

Corporate performance:

Consolidated over 50% share in the domestic motorcycle market

Reported highest ever sales in a month in October 2007 (365,022 units)

Crossed half a million retail sales in the festive season

Closed calendar year 2007 with sales of over 33 lakh two-wheelers

Achievements:

Retained the coveted position of World No 1 two-wheeler company for the seventh consecutive

year

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Crossed landmark sales of Two Crore bikes; celebrated the achievement with Hero honda

BIKE-A-THON- a nationwide marathon of Hero honda bikes under the Hero honda Country

campaign

New Launches:

Launched two new models Hunk (150cc) & refreshed Splendor+ along with a Special Edition

Doubled volume and share in the premium segment - currently own almost 20% share

New Delhi, January 31, 2008: Hero honda Motors Ltd. (HHML), the worlds largest two-

wheeler manufacturer, today reported 31% per cent growth in profit after tax (PAT) at Rs 275

crore for the third quarter (October-December) of this financial year (2007-08). Hero hondas

profit after tax in the corresponding period last fiscal stood at Rs 209.18 crore.

Total Turnover (sales turnover plus other income, net of excise) grew to Rs 2795.17 crores, a

growth of 3.54 per cent over Rs 2699.63 crores recorded in the corresponding period last fiscal.

The company has recorded an EBIDTA margin of 13.95% in the quarter. The EBIDTA margin

in the previous quarter (July-September07) was 12.39%.

This strong financial performance comes close on the heels of the companys good overall sales

even in the face of the prevailing slowdown in the two-wheeler industry. Hero hondascumulative total turnover for the first three quarters (AprilDecember 2007) of this financial year

stood at Rs. 7673.43 crores.

Hero honda's strategy for aggressive top line growth through new product launches, brand

building initiatives backed by innovative communication has resulted in market share gain across

every segment. Indeed, Hero hondas share in domestic motorcycles market has been growing

upward of 50 per cent, despite the slowdown in the two-wheeler industry. According to Mr.

Brijmohan Lall, Chairman, Hero honda Motors Ltd., Our performance during the third quarterof this fiscal has been very encouraging considering the current slowdown in the two-wheeler

industry. We have been consistently reporting better-than-industry sales numbers, and it has also

been reflected in our bottom line. We wish to thank all our customers and stakeholders for

reposing their faith in our company and our products.

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Mr. Pawan Munjal, Managing Director & CEO, Hero honda Motors Ltd. said, Given the

industry slowdown scenario, we are very enthused by our robust financial numbers for the third

quarter. However, this was not unexpected. We had undertaken some strategic initiatives since

the beginning of this fiscal, including a conscious effort to rationalize costs across the board, and

its results are now visible. Our bottom line has seen a consistent improvement, and we have been

able to demonstrate that it is possible to keep gaining market share while maintaining a robust

bottom line.

With input costs softening and our sharp focus on cost efficiencies, we should be able to further

improve upon our financial results, he added.

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CONCLUSION

This survey was done to indentify various problem and level of identify various problems and

level of satisfaction of consumer, so that efforts might done to satisfy them which would result in

building long term relationship between the customer and company. Due to delivery in customer

need and expectations, it become a different task to satisfy every customer, therefore to satisfy

each and every customer the important of building relationship with them existed. For this

purpose a number of questions were asked to find out behavior of customer. This research is also

done to know the views of the customer towards the services and quality and supply chain

management of HERO HONDA BIKES.

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FINDING & ANALYSIS

Do you have any vehical ?

Yes 85%

No 15%

INTERPRETATION :

After survey we found that,85% customer having a hero Hero honda bikes.

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Which bike you have own?

Hero Honda 67%

Tvs 10%

Honda 19%

Others 4%

Interpretation:

Mostly prefer HERO Hero honda brand.

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Does your purchasing decision affected by the brand name of the Bikes?

Yes 75%

No 25%

Interpretation :

Mostly youth says yes..

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What is the opinion about the price policy of Hero Hero honda product?

Expensive 24%

Cheap 76%

Interpretation:

Most of the youth rider says,it is quite cheap.

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For what purpose you buy the Hero honda Bike?

Official 57%

Household 12%

Anyother 6%

Business 25%

Interpretation:

Most of the people says for official purpose.

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Have you faced any problem regarding the power driving of vehicle?

Yes 25%

No 75%

Interpretation:

Most of the youth says ,there is no problem with power driving of vehicle.

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How does Hero honda have consumer relations ?

Satisfactory 82%

Unsatisfactory 18%

Interpretation;

Most of the youth says it is satisfactory.

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Are you satisfy with Hero honda vehicle ?

Yes 76%

No 24%

Interpretation;

Most of the youth are satisfy with Hero honda vehicle.

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FINDINGS

After the survey we found the satisfaction level of Hero honda bikes riders,

Most of the consumers go for the Hero honda bikes because of its safe designe.

Youth feel very comfortable with it.

Hero honda has been covering the entire segment.

Hero honda technology is very innovative.

A very high segment of youth goes for the name and goodwill of the Hero honda.

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SUGGESTION

The company should increase their service stations.

More financing option should be available.

The company should provide more customer value.

Follow up should be increased.

Effort should be done for developing the concept of good relationship with consumers.

Special offer should be provided for government employment.

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ANNEXURE

PERSONAL PROFILE:

Name : ____________________________________________

Address : ____________________________________________

Telephone No. : ____________________________________________

E-Mail : ____________________________________________

Age :____________ Gender:_______________

Education

[ ] Undergraduate [ ] Post graduate

[ ] Graduate [ ] Professionally Qualified

Occupation

[ ] Businessman [ ] Private Job

[ ] Government Official [ ] Any Other

Do you have any vehical ?

[ ] yes [ ] no

Which bike you have own?

[ ] bajaj [ ]hero honda

[ ] TVS [ ] Other

Which Honda bike do you own ?

[ ] [ ] active

[ ] eterno [ ] other

Does offer free gift by hero honda services provides affect your buying decision?

[ ] Yes [ ] No

Does your purchasing decision affected by the brand of the Bikes?

[ ] Yes [ ]No

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For what purpose you buy the hero honda Bike?

[ ] Official [ ] Business

[ ] Household [ ] Any Other

What is the opinion about the price policy of hero Honda product ?

[ ] expensive [ ] cheap

Have you faced any problem regarding the power driving of vehicle ?

[ ] yes [ ] no

How does hero Honda have consumer relations ?

[ ] satisfactory [ ] unsatisfactory

Are you satisfy with hero Honda vehicle ?

[ ] yes [ ] no

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BIBLIOGRAPHY

Http: www.herohonda.com http: www.google.com http: www.wikipedia.org Philip Kotler,

Marketing Management,

I have used the following source for finding the data

A. Research methodology - C.R. Kothari

Literature from the web site

http://www.herohonda.advertisment.pro.coreproduct.org

www.herohonda.plazma.core.pro.high.frogmentation.org

"http://www.herohonda.com"

Authorized dealer in a city
http://www.herohonda.plazma.core.pro.high.frogmentation.org/http://www.herohonda.plazma.core.pro.high.frogmentation.org/

Documents

31376092 Advertising and Sales Promotion in Hero Honda and Comparative Study