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A SUMMER TRAINING REPORT
ON
MARKETING STRATEGY OF HERO HONDA
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)
GURU JAMBHESHWAR UNIIVERSITY, HISAR
TRAINING SUPERVISOR: SUBMITTED BY:MR. AMAN CHOPRA AJAY CHIKARAMARKETING MANAGER ENROLLMENT NO.: 05511242117
SESSION 2005-2008
GURU JAMBHESHWAR UNIVERSITYHISAR
ACKNOWLEDGEMENT
The present work is an effort to throw some light on Marketing Strategy of Hero
Honda. The work would not have been possible to come to the present shape without
the able guidance, supervision and help to me by number of people.
With deep sense of gratitude I acknowledged the encouragement and guidance
received by my organizational guide Mr. Aman Chopra (Marketing Manager) of
Hero Honda Motors Ltd.
I convey my heartful affection to all those people who helped and supported me
during the course, for completion of my Project Report.
AJAY CHIKARA
2
EXECUTIVE SUMMARY
The study, which I conducted on the “In-depth Analysis of Hero Honda Motors Ltd”
in the area of Marketing & Human Resource Management has been a very gratifying
experience at the outset, the objectives were to cover the whole marketing strategies
and Human Resource policies adopted by HHML. The entire report has been effort to
do just that.
Through out the study I found Hero Honda bikes are very new & use modern
technology in their bikes. As a result they give better performance then other bikes in
the market & required less maintenance. Hero Honda also provides good after sale
service to the customer.
Hero Honda has managed to put in spectacular performance going from strength to
strength despite increase in competition, the company’s sales have witnessed an up
trend, registering an average growth of 42% in the three years under review.
Hero Honda has managed to achieve this because of its strong brand image and
proven product quality underpinned the performance growth in recent years. Apart
from the strong brand “Splendor” the company’s presence across the spectrum of the
motorcycle market helped it exploit the growing demand for 4-stroke motorcycles.
In view of the increasing competition due to globalization and the expansion of the
economy .All industries need to constantly add more attributes and features which
consumer wants in two wheelers of their company .In context company had to adopt
more innovative and consumer friendly attributes so that there product should be more
popular among the customers.
Today in this present world the Marketing Strategy of Hero Honda in two wheeler
segment of India and are leading as the world number one two wheeler company
from the past three consecutive years.
3
The research assingned to was to study the parameter ore the features that effect most
of the customer satisfaction in the Hero Honda motors limited & BAJAJ Automobiles
.There are many features which effect the two wheeler company but important among
all of them are the following :-
(1) Fuel efficiency
(2) Maintenance
(3) Availability of the product
(4) Resale value
(5) Look and style
(6) Image and brand
4
TABLE OF CONTENTS
Chapter No. Topic Page No.
1. INTRODUCTION
About The Industry
Products
2. RESEARCH METHODOLOGY
Research Objective
Research Design
Data Sources
Primary Data
Secondary Data
Questionnaire Design/Formulation
Sample Design
Limitation of the Research
3. COMPANY PROFILE
History of Hero Honda comp.
S.W.O.T Analysis
4. DATA ANALYSIS
5. FINDINGS / CONCLUSION
6. RECOMMENDATIONS
7. ANNEXURE
QUESTIONNAIRE
5
8. BIBLIOGRAPHY
6
INTRODUCTION
The Indian two-wheeler industry is dominated by three players, Bajaj, Hero Honda
and TVS Suzuki, who account for 80 percent of the total two-wheeler market. The
other players including Kinetic Engineering, LML and others account for the
remaining 20 percent of the market. The industry can be divided into three broad
segments: Scooters, motorcycles and mopeds. In the scooters segment Bajaj is the
market leader, Hero Honda is the market leader in the motorcycles segment and in the
segment of mopeds, TVS controls the major chunk of the market.
Most Indian players in the two-wheeler industry had been into some kind of strategic
alliance, technical collaboration or joint venture with foreign players, mainly Japanese
firms. Hero-Honda, is a joint venture between the Munjal-promoted Hero Group and
Honda Motor Co. of Japan; TVS-Suzuki was an alliance with TVS and Suzuki Motors
(till September 2006); Bajaj-Kawasaki a joint venture between Bajaj Motors and
Kawasaki; and Yamaha-Escorts, a joint venture between Escorts and Yamaha Motor
Corp. (till June 2007).
Indian automobile market, be it the two-wheeler segment, the three-wheeler segment
or the car segment, is yet to come to a stage where all the models are developed
indigenously. For years now, Indian companies have been dependent on their foreign
joint venture partners or collaborators to provide them with the technical know-how.
This trend too is in for a change. Leading the pack in this arena is Bajaj, which has
been Successful at designing models in-house. Bajaj's Saffire and Spirit, have been
able to bag the scooter of the year award for 2006 and 2007 respectively. In fact, its
Spirit was adjudged the "Indigenous product design of the year" for the year 2000.
The recently launched Pulsar from the Bajaj stable is yet another home-grown
product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has been
laying increased emphasis on its R&D so as to be able to launch new products to tap
the markets at all possible price points. Other companies too are adapting the strategy
of designing and developing products indigenously. TVS's Victor is yet another
7
development in this direction and this indigenously built model has been a success in
the markets.
ABOUT THE INDUSTRY
Their operations cover spectrum of consumer and industrial application including
motorcycles, mopeds, automotive components and industrial supplies. In each of
these areas Hero is a pioneer and a leader. Hero Cycles Ltd. is in the Guineas Book of
World Records as the world’s largest bicycle manufacturer.
Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle. Hero-
PACER, PANTHER and ANKUR produced by majestic auto Ltd. are among the most
popular mopeds in the country.
Other companies in the HERO galaxy are Gujrat Cycles Ltd.: Indian’s most advanced
bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier of the stock
industries: brand leader in shafts and hubs; Highway Cycle industries: manufacturing
free wheels and Sunbeam Castings: making precision non-ferrous castings.
Modern technology for systems have transformed the profile of HERO. Yet the
formula for success is unchanged –A drive for quality and economy. A commitment
to ancillary development and uncompromising attention to the common man’s need
8
HERO GROUP
BUSINESS HERO CYCLES
LIMITED
HERO CYCLES
LIMITED (UNIT
II)
GUJARAT
CYCLES
LIMITED
Bicycles Established in 1956
in Ludhiana
Product : Bicycles
Established in 1988
in Sahibabad
Product: Bicycles
Established in 1988
in Baroda Product :
Bicycles
BUSINESS
Auto-Two
Wheelers
HERO HONDA
MOTORS LIMITED
Established in 1983 New
Delhi
Product: motorcycles
collaborator: Honda motor
co. Ltd., Japan
MAJESTIC AUTO
LIMITED
Established in 1978
Ludhiana Product :
mopeds & fitness
equipment
HERO MOTORS
(A DIVISION OF
MAJESTIC AUTO
LIMITED)
Established in 1988
Ghaziabad Product :
mini motorcycles
Collaborator: steyr
daimler punch,
austria product:
scooters,
collaborators:
Malguti, Italy.
BUSINESS
Bicycle and Auto
Components
ROCKMAN
CYCLE
INDUSTRIES
LIMITED
Established in 1960
Ludhiana
HIGHWAY CYCLE
INDUSTRIES
LIMITED
Established in 1971
Ludhiana Product:
Freeweheels & Special
MUNJAL SHOWA
LIMITED
Established in 1985
Gurgaon Product :
9
Product :Automotive
& Bicycle Chains;
Steel & Aluminium
Hubs.
Machine Tools Stock Absorbers
Collaborator: Showa
Manufacturing Co.
Japan
BUSINESS
Castings and steel
MANJAL
CASTINGS
Established in 1981
Ludhiana
Product : Non-
ferrous Castings
SUNBEAM
CASTINGS
Established in 1987
Gurgaon Product :
Non- ferrous Castings
HERO CYCLES-
COLD ROLLING
DIVISION
Established in 1990
Ludhiana Product :
Cold Rolled Steel
Sheets and Coils
BUSINESS
Services
HERO EXPORTS
Established in 1993
Ludhiana
Product :
International Trading
Company dealing in
Commodoties &
Engineering Items
HERO
CORPORATE
SERVICES
Established in 1995
New Delhi Product:
Corporate Service in
Finance, HDR, IT &
Strategic Planning
MANJAL SALES
CORPORATION
Established in 1975
Ludhiana Product:
Sole Selling Agents of
Bicycles and Bicycles
Parts for India.
10
HISTORY
The Honda motor company was incorporated in 1948. Since its inception, Honda has
become the large Japanese industrial concern among those companies incorporated
after World War II. It has also been established itself as the world’s Largest
manufacturer of the motorcycles, commanding 25% of the motorcycle market and
nearly 50% of the Japanese market.
Today Honda is acknowledged as the undisputed leader in the motorcycle technology.
Recognized the world over as a pioneer, the Honda name is guarantee of the
technological and the manufacturing excellence of any product. Honda5s other areas
of product excellence include Automobiles and Power products (Lawn Movers,
generators and Outboard motors.)
Honda motor company has 83 overseas production facilities in 35 countries looked
after by 93000 strong force. In 1995 its consolidated sales amounted over Rs. 140000
crores.
CHAIRMAN PROFILE
Profile of Chairman of Hero Honda Ltd.
Mr. Brijmohan Lall, Chairman of Hero Group of Companies, is a first generation
entrepreneur of 1950’s. After partition Mr. Manjal along with his brothers started the
business of bicycle components manufacturing in a humble way at Ludhiana at a time
when the country was beset with bottlenecks of industrial infrastructure and
investments. In his 50 years of career as an entrepreneur, Mr. Lall has a trail of
successes, but his demeanor is unbelievably warm and loving. At this pinnacle of
accomplishment, he is accessible, forthcoming and friendly- be it with workers,
professionals, business associates or government officials.
Born on July 1, 1923, Mr. Brijmohan Lall advocates corporate governance and ethical
and value-driven management practices. He has been successful in steering the
11
business with innovative ideas. He continuously provides group companies foresight,
advice in their business strategies.
Today, the group produces 5 million bicycles and I million two-wheelers annually. It
has a committed workforce of over 15000. The group companies have been honored
with best industrial governance and safety awards under Mr. Munjal’s Chairmanship.
Besides managing a large organization, Mr. Lall spends consideration energy, time
and resources to strive for social upliftment of communities and villages around the
factories. He has set up various medical, educational facilities and infrastructure,
actively leads national business associations and also adds value as Board members of
Reserve Bank of India.
Mr. Brijmohan Lall Munjal and his brothers have nurtured the family by training
younger generation members into a distinct culture, which is unique in providing
quality management and enterprise to Indian industry.
REWARDS AND RECOGNITION
Mr. Munjal has received several prestigious awards in his illustrious career over
50 years:
Mr. Brijmohan Lall Munjal received the “Business Man of the Year” award by the
Business Indian Group of publications for the year 1994.
Mr. Munjal was also presented the “National Award for outstanding contribution
to the development of Indian Small Scale Industry” by the President of India in
the year 1995.
He had also received the most admired “CEO” award from Business Baron for the
year 1999.
He was also awarded the “Honorary Membership of the Indian Institution of
Industrial Engineering” in 1992.
Mr. Munjal was awarded the “Indians of the Century award” by Times of India in
2000.
The “XLRI” Institute (Jamshedpur) has conferred on him with the Honor of “Sir
Jehangir Ghandy Medal for Industrial Peace” in 2000.
12
Mr. Brijmohan Lall Munjal is also the president of “Dayanand Medical College
and Hospital at Ludhiana.
Mr. Brijmohan Lall has also been the member of many important industrials and
business delegations led by Prime Ministers and other ministers to project the
image of the country and also make others aware of the business opportunities in
India.
13
PRODUCTS
A Product is something of value that is offered for sale or hire with the aim of
satisfying customer needs. It is a bundle of satisfaction that the customer buys. A
product may be a tangible offer to the market, which includes product quality, variety,
design, features, branding etc. It may also be intangible such as provision of a service
like training or education etc. Many products may have tangible as well as intangible
attributes. For example Daewoo Cielo car is the tangible product and after sale
services and mobile repair anywhere is an intangible service.
PRODUCT LINE
A product line refers to a group of product clubbed together because they have one of
the above described characteristics in common. The number of product lines carried
by a firm at a given point in time is a function of its resources and competitive
position.
PRODUCT WIDTH
This refers to the number of different product lines marketed by a firm.
PRODUCT DEPTH
This refers to the numbers of product items and their variations (like size, packaging,
colours, etc) offered in each product line.
PRODUCT CONSISTENCY
This is the degree of similarity between product line in end use, technology and
production techniques, distribution channel etc.
The ideal product mix is an issue that varies from firm to firm and may be hard to
define and come by.
14
POSITIONING OF THE PRODUCT
Positioning concerns what is in the minds of consumers, in particular in the minds of
your target group(s) of consumers. It is what the consumers think of the product or the
firm or there perception of the product offerings of a firm.
It is about the position your firm, the product, and the brand occupy in the minds of
particular group of consumers, the attributes they associate with your product, and
they have concerning the product. Positioning is something that goes on in the
consumers mind.
BRANDING
A brand is a name, term sign, symbol, or design, or a combination of them, intended
to identify the goods or services of one seller or group of sellers and to differentiate
them form those of competitors.
Branding is a way of labeling your particular product offering to distinguish it from
other competitors product offering.
TYPES OF BRAND NAMES
One name Many different names
Umbrella corporate
Name
Family
Umbrella
names
Range
names
Separate individual
brand
names
15
PRODUCT DESCRIPTON (HERO HONDA LTD.)
Hero Honda has launched the following motorbikes in the Indian market.
Hero Honda CD 100
Hero Honda CD 100 SS
Honda Sleek
Hero Honda Splendor
Hero Honda Street Smart
Hero Honda CBZ
Hero Honda joy
Hero Honda passion
Hero Honda Ambition
Hero Honda Karizma
Hero Honda Dawn
A brief description of these bikes is as follows:
16
PRODUCT AND SERVICES
HERO HONDA CD 100
CD 100 The original “Fill it, Shut it, Forget it” bike is India’s first 4-stroke bike and is
still the India’s foremost. It is an economical and reliable bike which has the ability to
go on and on, year after year. The CD100 4-stroke engine is derived from Honda’s
tough economic series range of engine, which makes it, fuel-efficient. The bike is
economical and easy to maintain with optimal oil circulation of 50ml, for every 1000
kilometers. It has separate oil circulation in the engine. Hence no possibilities of
carbon deposits on piston rings, spark plug and no silence to worry about.
CD 100 is an improved, easy to ride bike, with illuminated speedometer with a
colour- marked “economy zone” indicating cruising range. The bike has a 97.2 cc, 7.2
hp at 8000- rpm engine. It has an electronic ignition and it weighs at 107 kg (kerb
weight). It gives the maximum speed of SO kilometer per hour. CD 100 comes in a
four speed constant mesh – all foot shift gears.
The bike is priced at Rs. 37000(ex-showroom Delhi) and at Rs 36000 (ex showroom
Mumbai. CD 100 is available in four colours candy Ruby red, Black, Amazing Blue
metallic and sierra green metallic). The bike confirms to the year 2000 Euro emission
norms.
17
HERO HONDA CD 100 SS
The CD 100 SS is a bike that is meant to take on the toughest riding condition, while
continuing to enjoy the legendary fuel economy. The CD 100 SS adds a new
dimension of strength to Hero Honda’s world famous four-stroke technology. The
bike has a 97.2 cc, 7.2 hp at 8000 rpm. It has a large ground clearance of 165 mm and
it weights at 112kg(kerb weight).
The CD 100 SS has wider tyres, to grip the road in any condition giving it improved
cornering stability and safety. The bike has large reinforced shock absorbers, to soak
up bumps on unkind roads, to protect the bike and to give the ride more comfort. CD
100 SS also has an engine guard, to protect and engine from the assault of sand, mud
and stones, therefore giving it improved performance. The bike comes with a
transmission of 4-speed, constant mesh, all feat shift gear and it has an electronic
ignition. The CD 100SS has a fuel tank capacity of 10.1 litres (including 2.8 litres
reserve). CD 100SS is priced at Rs. 39,000(ex-showroom Delhi) and at Rs. 37,000
(ex-showroom Mumbai). The bike is available in the following colours (Candy Ruby
Red, Black, Amazing Blue Metallic, Sierra Green Metallic and Classy Maroon
Metallic).
18
HERO HONDA SLEEK
Hero Honda Sleek is a 97.2 CC1, 4-stroke, single cylinder, air-cooled bike, that comes
with a Electronic Ignition. The bike has a Multi-plate wet clutch and it comes with a
transmission of 4-speed constant mesh, all foot shift gears. It has a Backbone frame
type. The Sleek has a maximum power of 7.0 hp2 @ 8000 rpm and it gives a
maximum speed of 85 Kilometers per hour. The bike has a ground clearance of 165
mm. And It has a dry weight of 100 Kilograms. The Sleek has a fuel tank capacity of
10.3 litres (including 1.4 liters reserve).
19
HERO HONDA SPLENDOR
Hero Honda Splendor the world’s largest selling motor bike is a 4-stroke, 100cc
driving machine. It has smashing good looks and gives excellent performance. The
bike’s new engine gives unprecedented fuel efficiency. It has a well-cushioned Long-
slung seat that helps the rider to rest and ride at the same time. Splendor has very
good suspension, which works so well, that one may never be able to find out what
happens between the tyres and the bumpy roads. Splendor is a bike that met the
pollution control standards of 1990’s.
Splendor comes with a transmission of 4-speed Constant Mesh all foot shift gears. It
has an Electronic Ignition and it weight at 90 Kilograms (Kerb weight). The bike has
a maximum power of 7.5 Ps at 8000 rpm and it gives a maximum speed of 85
kilometer per hour. The Splendor has a tabular double crable type frame. The bike has
a wheel base of 1230 mm and a ground clearance of 159 mm.
Hero Honda Splendor is priced at approximately RS 41,000 (ex-showroom Delhi) and
at RS 39,000 (ex-showroom Mumbai). The Splendor is available in the following
colours (Black, Candy Ruby Red, Blaze Blue silver Metallic, Sierra Green Metallic
and Hi Cranite Blue Metallic). The Splendor conforms to the year 2000 Euro emission
norms.
20
HERO HONDA STREET SMART
Hero Honda Street Smart is a 4-stroke, 100cc bike which delivers great pick-up, the
bike is reasonably priced. The Street Smart comes with trendy front shield, which
makes it more sturdier safer and smarter. The bike has Rotary gears and Auto-Clutch,
which makes it amazingly maneuverable. It has a storage box, which makes it easy to
carry bags, lunch boxes etc. The Street Smart also has an automatic decompression,
which makes it easy to start. The bike also comes in a self-start model, which helps to
reduce load on the battery and enhances its life. It’s a sheer convenience for riding.
The Street Smart has Electronic ignition and a background tubular type Frame. It has
a ground clearance of 133mm and it comes with a transmission 4-speed constant
Mesh all feat shift gears. Street Smart has a wheel base of 1205 mm.
Hero Honda Street Smart is priced at approximately Rs 32,000 (ex-showroom Delhi)
and Rs 36,000 (ex-showroom Mumbai). It is available in the following colours
(Candy Ruby Red, Black, Sierra Green Metallic and Purple Metallic).
21
HERO HONDA CBZ
Hero Honda CBZ is a bike that is equipped with five gears and 156.8 CC engine
which generates 12.8 Ps power. The bike reaches from 0 to 60 kilometers per hour in
just 5 seconds effortlessly touches the top speed of 100 kilometers per hour. The CBZ
also has the widest rear tyre, with a unique tread pattern that is not available on any
Indian motorcycle. It also has a large 130-mm drum brakes, and also has an option of
front disc brakes, which enhances its braking performance.
The CBZ also has the Transient Power Fuel Control (TPFC) system which helps in
giving the bike quick acceleration. The bike also has the tripmeter, which measures
the distance traveled in a trip. It also has the dynamic vibration dampers incorporated
in the handlebar, which ensures that the ride is smooth and easy. The air injection
system in the CBZ injects fresh air in to the exhaust part. The unique trapezoidal
headlights gives CBZ a stylish look and helps the Rider to see clearly in the darkest to
nights. The CBZ also has a multi-lever lockable seat which provides storage space
and doubles as an anti theft mechanism for GDI unit RR unit and the battery. The bike
also incorporated the zero crank case evaporative emission, pollution control feature
so advance, that it is seen for the first time in India.
The Hero Honda CBZ is priced at approximately RS 57,000. The bike is available in
the following colours (Black, Tasmania Green, Tahitian Blue, Candy Sparkling silver
and Candy Blazing Red).
22
HERO HONDA PASSION
Engine 4-stroke, single cylinder air cooled
OHC
Displacement 97.2cc
Maximum Power 7.5 Ps at 8000 rpm
Gear Box 4 Speed constant mesh
Clutch Multi-plate wet type
Max. Speed 85 kmph
Frame Tubular double cradle
Suspension Front
Rear
Telescopic Hydraulic fork Swing
Arm with 5 step adjustable hydraulic
damper
Tyre Size Front
Rear
2.75 x 18 x 4 PR
3.00 x 18 – 3/6 PR
Final Drive Roller Chain
Battery 12 V- 2.5 AH
Ignition Electronic CDI
Starting Kick Starter
Wheelbase 1235 mm
Ground clearance 159 mm
Length 1980 mm
Width 720 mm
Height 1060 mm
Kerb weight 116 mm
Fuel Tank Capacity 12.8 litres (Reserve 1.1 ltrs)
SPECIAL PHYSICAL FEATURES OF NEW BORN …PASSION
PASSION is one of the classiest looking bike HERO HONDA Motors Ltd. has ever
made. Truly going by the traditions of its Corporate Image … Leading The Way,
HERO HONDA Motors Ltd. has designed & introduced a bike truly for the youth of
the new century. It’s a feast for your eyes…
23
SOME OF THE PHYSICAL FEATURES THAT ARE DESIGNED
IN BIKE …PASSION
HEAD LIGHT
Trapezoidal head light with a multi-reflector lens in a well-designed visor gives the
motorcycle a stylish look. The headlight also has a position lamp. It comes in handy*
when you head light bulb is not working and can go a long way in providing that extra
safety at night.
MUDGUARD – FRONT PORTION
Enhances safety for the rider.
FUEL TANK
Newly designed knee grip fuel tank has a capacity of 12.8 litres with a reserve of 1.1
litres.
STORAGE KIT
A large lockable storage space for imported items.
THE ENGINE
4-stroke, 97.2 cc, single
Cradle Tubular Frame’.
THE SIDE COWLING
The integrated side cowl gives a stylish look to the motorcycle. The matching
graphics gels very well with the overall sporty look of the motorcycle.
SHOCKERS
The rear shocker can be adjusted according to the terrain and the ride is as
comfortable on a village road as on a city highway.
24
SEAT
A wide and comfortable seat makes for tireless riding. The seat is lockable – tool kit
and important papers are safe under it. A helmet holder is also provided.
BACKLIGHT
A new design taillight with multi reflector makes PASSON the first two wheeler to
use multi reflectors.
25
HERO HONDA AMBITION
This 133cc engine gives you the lead. A mileage of 79 kmpl"makes sure you stay
on the road. And the Regal Crest styling makes you feel kingly.
It's time to Move up in life. With Ambition, there's no looking back
The 133cc engine with an 11 bhp thrust. Ensured through AMI- Advanced
Microprocessor Ignition system.
A superbly shaped 12.5-litre capacity fuel tank, along with mileage that ensures
you comfortably cross many milestones!
The styling has a touch of royalty, and is topped with a Regal Crest.
26
HERO HONDA KARIZMA
The Karizma features a 223cc, 17PS power pack that accelerates you from 0-60 in 3.8
seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it
races away from the pack.
Digital ignition and a constant vacuum carburetor facilitate better control of ignition
timing.
Priced at Rs. 89,220/- on road Mumbai the Karizma is available in seven attractive
shades.
27
28
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problems.
Following steps have to be taken to obtain a correct result.
1. Define Research problem clearly
2. Formulate Hypothesis
3. Develop Research design
4. Collect Data
5. Analysis of Data
6. Interpret and Report
These steps were not fully followed in this study as the research was not numerically
inclined and was not based on primary data.
In this final project the topic is related to the Marketing Research and analysis. The
study of my research is descriptive and is related to the motorcycle industry. This is
the topic, which falls under market leadership, competition ,strategies and other
policies of motorcycle Industry.
As my study was more focused on the strategic position of the key players in the
industry, the data was collected primarily through secondary source.
Though some dealers and showrooms were informally visited, and some information
were collected through an unstructured interview.
29
METHODOLOGY USED
1. Research Design - The project was designed to be a Descriptive
Research, because the study required an in depth.
Look into the Motorcycle market, it's structure and
Status.
2. Data collection
Method - The basis of this project is the information collected
through Secondary data. In order to get the view of
those related in this market, some dealers and
showrooms were informally visited.
3. Data Source - All the information were primarily collected through
Business Magazines, Newspaper cuttings, Internet
sites.
The structure of this research was decided while keeping readers in mind. It is an
attempt to put forward my study in easy and simple language.
30
RESEARCH DESIGN
TYPE OF RESEARCH: - DESCRIPTIVE RESEARCH
Descriptive research includes Surveys and fact-finding enquiries of different kinds.
The main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening.
DATA SOURCESThere are two types of data.
PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose of
facilitating the study is known as primary data. So in this research the data is collected
from respondents through questionnaire.
SECONDARY DATA
For the company information I had used secondary data like brochures, web site of the
company etc.
The Method used by me is Survey Method as the research done is Descriptive
Research.
RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.
31
QUESTIONNAIRE DESIGN/FORMULATION
Questionnaire: - A questionnaire consists of a set of questions presented to
respondent for their answers. It can be Closed Ended or Open
Ended
Open Ended: - Allows respondents to answer in their own words & are difficult
to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to Interpret and
Tabulate.
TYPES OF QUESTION INCLUDED :
DICHOTOMOUS QUESTIONS
Which has only two answers “Yes” or “No”.
MULTIPLE CHOICE QUESTION
Where respondent is offered more than two choices.
IMPORTANCE SCALE
A scale that rates the importance of some attribute.
RATING SCALE
A scale that rates some attribute from “highly satisfied ” to “highly unsatisfied “ and
“very inefficient” to “very efficient”
32
SAMPLE DESIGN
Who is to be surveyed? The marketing researcher must define the target population
that will be sampled.
The sample Unit taken by me; General public of different age group, different gender
and different proffesion
EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey
TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th july
SAMPLING FRAME:-
The source from which the sample is drawn
SAMPLING TECHNIQUE: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling . Among the
probability sampling design the sampling design chosen is stratified random
sampling.
Because in this survey I had stratified the sample in different age group, different
gender and different proffesion
SAMPLE SIZE/ POPULATION SIZE: -
How many people should be surveyed?
My sample size is 75
33
LIMITATIONS OF RESEARCH
The geographical area was very much limited to residential area & so the results are
not particularly reflection of the current behavior.
BIASES AND NON-COOPERATION OF THE RESPONDENTS
Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored in Hero Honda
Auto Mobile Com.
Most of the people in India take their policies in the period preceding March (for tax
saving purposes) & so the response to initial contacts were not all encouraging and
that has been the primary reason in the inability to quantify the results large enough
so as to deduce any relevant outcomes.
34
35
COMPANY PROFILE – HERO HONDA
MOTORS LIMITED
Hero Honda Motors Limited was incorporated on 19th January 1984 as a result of a
joint venture collaboration between the world’s largest manufacturer of Motorcycles
“Honda Motor Company of Japan” and the world’s largest manufacturer of bicycles
“Hero Group”. The Honda Motor Company of Japan and the Hero group both
contribute an equal 26% share in the equity, with the rest being with the public.
Hero Honda is today the largest 100-cc motorcycle selling company in the Indian
market. Hero Honda motorcycles have become synonymous with economy and set
standards in the Indian two-wheeler market for their fuel efficiency, low emission
levels and better quality. All this along with the fact that the company’s products are
designed for the Indian market and driving conditions gives it a distinct competitive
edge.
Hero Honda Motors Limited launched its first motorbike “Hero Honda CD 100” in
May 1985. After the launch of the first motorbike, it introduced the “Hero Honda CD
100 SS”, the “Street Smart”, “Hero Honda Splendor” and the “Hero Honda CBZ”,
motorcycles in the Indian market.
Hero Honda has acquired around 43% market share in the Indian motorcycle market.
The company has a wide network of dealers and service points with emphasis on
customer care and service. The company has 360 dealers in India. Hero Honda is the
only Two-wheeler Company, which has introduced automated workshops at all major
dealership showrooms. The company has 220 automated workshops in India. In 1990-
91, Hero Honda promoted a company- Hero Honda Finlease, to provide lease finance
to its customers.
Hero Honda was awarded the “Best Productivity” performance award by the National
Productivity Council for the Automobile industry for the year 1990-91. The company
36
also received the Economic Times “Harvard Business School Association of India”
award against 200 strong contenders.
The company apart from being the market leader in the Indian motorcycle market also
fulfills its obligation to the society. It operates a mobile dispensary van in the service
of those living within 10-Kilometer radius from its plant. Hero Honda also conducts
eye-camps each year also cataract operations on a charitable basis. The company has,
also established the Raman Kant Foundation, a trust to work exclusively in the area of
socio cultural and educational developments. Hero Honda Motors Limited under its
Chairman “Brijmohan Lall Munjal” has made tremendous growth and expansion in
the Indian two-wheeler market and has been successfully maintaining its position as
the market leader over the years.
37
OVERVIEW
GENERAL INFORMATION
Registered and
Corporate Office
: 34, Community Centre
Basant Lok, Vasant Vihar,
New Delhi-110057
Tel:6142451 (9 lines,) 6144121
Fax:6143321, 614321, Gram: HONDABIKE
Works : DHARUHERA PLANT
69th Km. Stone Delhi-Jaipur
Highway Dharuhere-122100
Dist. Rewari (Haryana) Tel:
01283-42131-35 Fax: 0128-
42399
GURGAON PLANT
37TH Km. Stone Delhi-
Jaipur Highway Gurgaon-
122001 Haryana
Tel:0124-372129-29 Fax:
0124-373141-42
Distance of Work
International Airpot
Head Office
:
:
54 Kms.
60 Kms.
22 Kms.
28 Kms.
Area
Total
Covered
:
:
2,48,000 sq. mts.
61,200 sq. mts. 24.7&
2,83,360 sq. mts.
51,200 sq. 18.07%
Technical &
Financial
Collaborators
: Honda Motors Co. Ltd.
No.1 –1, 2 Chome
Minami – aoyama, Minato – Ku,
Tokyo – 107, Japan
Tel: 3-3423-111 Telex: J22678 HONDAMATR
Fax: 3-3423-2442
38
THE ORGANISATION
Hero Honda Motors Ltd. Unit II is located at 37th km stone from Delhi on Delhi-
Jaipur highway at Gurgaon (Harayana), amidst clean industrial surroundings with
wide open green areas and lawns.
The factory building itself is refreshingly different. The plant layout is so designed as
to ensure maximum movement of men and material. Maximum attention is paid to the
employee’s convenience and mobility. The emphasis on quality is apparent in the
clean and congenial working environment in which the employees can put in their
best.
Advanced integrated technology can be seen at work in every operation be it Press
shop, Weld shop, Engine assembly, Frame assembly and final inspection. An
outstanding feature is the most sophisticated and advanced Engine Plant for the
manufacture of the engine components. Another highlight is the efficient water
treatment plant. After treatment the water is pumped into artificial lakes used for
horticulture.
As the modern and technology in the world would come to naught without the
corresponding development of the human values and attributes. Hero Honda
management has realized this need and have made a conscious effort to create unique
work culture in the company. The culture has evolved through a unique synthesis of
the Indian and Japanese styles of management.
EXPANSION PLANS AND FUTURE OUTLOOK
Earlier, HHML has faced capacity constraints and lost significant market share to
competitors during FY95 and FY96. With demand for motorcycles on the upward
curve, the company commissioned a new plant at Gurgaon, with a capacity of 150,000
vehicles pa in FY97. Capacity at Dharuhera plant in Haryana has also been expanded
from 300,000 vehicles to 350,000 vehicles during F.Y. 98. In the future too the
company has indicated to invest in capital equipment and regularly introduced new
models. The future outlook for the motorcycles segment looks positive with it
39
capturing a larger share of the cake from scooters. With customers having become
more discerning in terms of features and aesthetics, their preference has shifted
towards bikes. With adequate manufacturing capacities and a leading world player as
its partner, HHML is well be intended entry of Honda in the two-wheeler market two
year hence.
ANCILLARIES
HHML has a strong networks of ancillaries comprising inter alia, a number of Munjal
group companies such as Munjal Castings, and Munjal Showa. Also there are
dedicated vendors like Rico Auto. HHML has indigenoused more than 95% of its
components. In line with Honda philosophy, HHML source most of its component
requirement from third party vendors. This allows greater flexibility in production
planning. Materials cost is relatively high and overheads are lower.
SOCIAL CONTRIBUTIONS:
Hero Honda, believe in a wholesome approach towards development in a large
agrarian economy like India, by assimilating our rural sub systems to the main steam
of development. By doing so we can rural income, generate employment and can
profit basic amenities in the rural areas. In the process of procuring the ISO 14001
certification the company has implemented the environment management program
which, inter alia, includes the training of 400 employees and codification of
guidelines for the control of wastage of resources. The tree plantation plan of the
company continues with the same vigor.
EXPORTS
In continuation of its pursuit to increase its Export Base, Hero Honda Motors
participated in SAARC & CII Trade Fair’s. The response of the product shown in the
fairs was very encouraging & the company expects to clock higher exports sales
during the current Financial Year. During the Year under review Guatemala, Chile &
Costal Rica were added as new product & service markets.
40
MARKETING STRATEGIES
MARKETING
Marketing is challenging and exciting. The solving of marketing problems required
insight, experience and analytical ability. Take the case of a company faced with the
problem of increasing its sales. Increase in the sales at the expense of profits may not
be a desirable objective. Again there are many ways in which sales can be increased,
e.g. by finding new customers or selling more to existing customers, by increasing
advertising and by reducing the price. The marketing manger must decide which
strategy or combination of methods he should adopt for increasing his sales
profitably. He must also keep in touch with the changing needs and desires of the
consuming public as well as his competitors’ activities. Thus marketing is interesting,
as it required the marketing manger to be dynamic and not complacent for continuous
prosperity of his organization.
THE MARKETING FUNCTION
However the meaning of marketing is not often clear to people who use the word. To
a salesman it means selling whereas to an advertising manger it means advertising.
high-sounding definitions have also been advanced. For example, Paul Mazur defined
it as “the delivery of a standard of living of society”. Thus was expanded by Prof.
Malcolm McNair to “the creation and delivery of a standard of living.
“Marketing is the primary management function which organizes and directs the
aggregate of business activities involved in converting customer purchasing power
into effective demand for a specific product or service and in moving the product or
service to the final consumer or user so as to achieve the company-set or other
objectives”.
41
RELEVANT MARKETING FORCES
Consumer habits.
Consumer attitudes and motivations.
Trade structures and practices.
Trade attitudes and motivation.
Types of competition.
Relation of supplies and price to demand.
Position and share of the market.
Trends of competitive behaviour.
Government controls, which are applicable.
42
CD DAWN
Presenting CD Dawn, the true-value 4 stroke, 100cc motorcycle from Hero Honda. A
motorcycle that encompasses the legendary Hero Honda values of fuel-efficiency,
economy and rock-solid dependability
TOUGH TRACK SUSPENSION
The CD Dawn comes with a unique suspension that smoothens and absorbs bumps on
unkind roads and provides you with continuous riding comfort.
DOUBLY STRONG TUBULAR FRAME
Its double tubular-cradle frame by imparting extra stability to the motorcycle, ensures
an exceptionally stable ride.
This and other features - like the legendary Hero Honda mileage, the first-of-its-kind
2-year warranty in the category and a price that will make you smile, is what makes
the new Hero Honda CD Dawn - Value Nayae Zamane Ki
PRODUCT STRATEGY
Hero Honda shifted its focus from catering to the fuel efficient conscious consumer
to try and occupy other segments of the motorbike market and therefore the new
product launches from Hero Honda in the last three year have been in this direction.
The company has also upgraded some of its bikes to stay in contention and to meet
Euro emission norms. The new underlining theme for the company “One for
everyone” has led to the launching of new products, which are as follows:
1) Street Smart: Hero Honda introduced its Street Smart in 1997. The company
who were more inclined towards the scooters and who thought that the scooters
were more safer than the motorcycles, thus Hero Honda decided to launch the
Street Smart. The bike was built in such a way that it resembled more like a
scooter, than a motorcycle, but actually it is a motorbike i.e. it is a “hybrid”
2) CBZ: Hero Honda introduced the CBZ in 1999. The bike was launched as a result
of the changing trends amongst the Indian customers from fuel efficient bikes that
43
were heavier, more powerful, trendy, stylish and sophisticated. This was done to
cater to those customers who wanted to buy motorbikes for fun, thrill and great
driving experience rather than being cost conscious. CBZ was also launched to
acquire the market share from the heavy motorbike segments, as the company did
not have any heavy motorbike. It was the first time that Hero Honda had made a
shift from 100 cc bikes to a 156cc bike.
With the launch of these two motorbikes and various other motorbikes in the pipeline,
Hero Honda’s strategy is to get into those segments of the motorcycle market where
they have not made inroads earlier.
Hero Honda continues to have the strategy of parity pricing. They have neither taken
the root of doing heavy discounting nor have they tried to occupy the premium
position. However with the launch of CBZ the company is gradually getting into the
area of premium positioning. The company keeps on making changes in the pricing of
the bikes, whenever there is an increase in inputs.
44
PRICE
Price is one of the important elements of the marketing mix, but lately, it has come to
occupy the centre-stage in marketing wars. The amount of money that customers have
to pay for the product is called price.
Price is the amount of value a product a masses in the market. To a manufacturer,
price represents quantity of money received by the firm or seller. To a customer, it
represents sacrifice and hence his perception of the value of the product.
Pricing is the only elements in marketing mix that creates revenue, the other generate
costs.
Every firm has different Pricing objectives. A firm can choose from the following
a) Survival in a competitive market.
b) Maximise current profits and return on investment
c) Balance price over product line
d) Maximise sales growth.
PRICING STRATEGY OF HERO HONDA
Hero Honda continues to have the strategy of parity pricing. They have neither taken
the root of doing heavy discounting nor have they tried to occupy the premium
position. However, with the launch of CBZ the company is gradually getting into the
area of premium positioning .The company keeps of making changes in the pricing of
the bikes ,whenever there is increase in inputs
45
Ambition ( Drum & Kick )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 43,857.00 48,512.00
Calcutta 45,343.00 48,500.00
Chennai 45,814.00 49,469.00
Delhi 44,612.00 46,873.00
Mumbai 45,513.00 49,806.00
Pune 43,865.00 47,973.00
Ambition ( Disc & Kick )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 46,514.00 51,413.00
Calcutta 48,066.00 51,400.00
Chennai 48,663.00 52,367.00
Delhi 47,461.00 49,770.00
Mumbai 48,283.00 52,820.00
Pune 46,530.00 50,870.00
Ambition ( Disc & SelfStart )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 51,004.00 56,314.00
Calcutta 52,667.00 56,300.00
46
Chennai 53,474.00 57,260.00
Delhi 52,275.00 54,666.00
Mumbai 52,964.00 57,912.00
Pune 51,034.00 55,767.00
CBZ
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 51,192.09 56,579.71
Calcutta 53,993.73 57,698.73
Chennai 54,939.00 58,120.00
Delhi 53,340.74 55,811.74
Mumbai 58,705 63,213
Pune 51,799 56,657
SPLENDOR
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 40,948 45,331
Calcutta 41,612 44,550
Chennai 41,739 45,310
Delhi 41,080 43,281
Mumbai 41,831 45,763
Pune 40,322 44,122
47
CD100 SS
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 38,375.91 42,530.54
Calcutta 39,003.26 41,800.26
Chennai 39,932.00 42,950.00
Delhi 38,507.68 40,664.68
Mumbai 39,709 42,797
Pune 37,722 41,295
CD100
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 36,896.88 40,915.80
Calcutta 37,494.76 40,199.76
Chennai 38420.00 41,410.00
Delhi 37,023.05 39,155.05
Mumbai 38,992 42,027
Pune 37,231 40,762
PASSION PLUS
Prices (in Rupees)
48
City Ex. Showroom Price On Road Price
Bangalore 41,898 46,403
Calcutta 42,574 45,549
Chennai 42,732 46,857
Delhi 41,885 44,127
Mumbai 43,816 47,920
Pune 42,232 46,198
PASSION PLUS DISC
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 44,494 49,237
Calcutta 45,212 48,150
Chennai 45,365 49,592
Delhi 44,482 46,950
Mumbai 46,541 50,882
Pune 44,853 49,048
SPLENDOR+ DRUM
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 40,447 44,818
Calcutta 41,111 46,500
Chennai 41,223 45,321
Delhi 40,579 42,788
Mumbai 42,351 46,328
Pune 40,822 44,666
49
SPLENDOR+ DISC
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 43,043 47,653
Calcutta 43,749 49,200
Chennai 43,856 48,001
Delhi 43,175 45,311
Mumbai 45,076 49,290
Pune 43,444 47,516
CD DAWN
Prices* (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 31,379.00 35,213.00
Calcutta 31,899.00 33,999.00
Chennai 30,899.00 34,800.00
Delhi 31,899.00 33,944.00
Mumbai 32,065.00 35,147.00
Pune 30,899.00 33,880.00
*This price includes the Celebration discount of Rs. 1001/-
PLACE
50
The place element of the marketing mix concerns decisions regarding how the
company or firm make their products available to the consumers. It involves the
various activities a company undertakes to make the product accessible and available
to the target customers. This is the distribution element of the marketing mix. It also
understand the various types of retailers, wholesalers, and physical distribution. Place
in broader term includes Channels, Coverage, Assortments, Locations, Inventory,
Transport, etc.
There are three broad decision areas in distribution. These are channel strategy,
channel management and physical distribution.
CHANNEL STRATEGY
A channel is a ‘pipeline’ through which the product is passed to get from the
manufacturer to the end-user.
LENGTH OF A CHANNEL
The number of intermediary channels are used to designate the length of a channel.
A zero level channel (also called direct-marketing channel). It consists of a
manufacturer selling directly to the final customer.
Manufacturer Consumer
A one level channel contains one selling intermediary such as a retailer.
Manufacturer Agent/dealer/retailer Consumer
A Two level channel contains two intermediaries
Manufacturer Wholesaler /dealer/Retailer Consumer
A Three level channel contains three intermediaries.
Manufacturer Distribution Wholesaler Retailer Consumer
51
CHANNEL MANAGEMENT
Channel management ensures that the firm manages there intermediaries so that they
can get the best out of them. It is about the relationship that the firm has with their
intermediaries, the margins they give them, the training and support they provided and
the activities and service that the firm requires from them in exchange.
PHYSICAL DISTRIBUTION
Physical distribution concerns the logistics of getting your product from the factory
floor to the end user. It is about the issues such as the re-ordering of stock by
intermediaries; whether to use trucks or train to transport the products; whether it is
better to have one factory and several dispersed warehouses factories from which the
firm transports the finished goods direct to wholesalers and retailers.
52
CHANNEL OF DISTRIBUTION IN HERO HONDA
Hero Honda continues to have the same policy of directly approaching the dealers.
However the company has made some changes in the dealership requirements. The
company has now divided its into three categories, A, B and C depending upon the
status of the town. Hero Honda has made some regulations and its dealers are bound
to fulfill specific requirements for their showroom and workshops in terms of area.
The company has also started focusing on the rural marketing such as Agartala
(Tripura), Tinsukia (Assam) and Bhagalpur (Bihar). The company has also increased
the number of dealers from 350to 400.
DISTRIBUTION CHANNELS-
Hero Honda has very strong Distribution channel in India. Hero Honda distributes its
products through Regional officer, Authorized dealers Etc.
HERO HONDA IN INDIAN HAS 3500 AUTHORISED DEALER
Criteria for selection of distributions;
1. Financial position to the distributors
2. Goodwill
3. Situation of show room
4. Past record
5. Experience
53
PROMOTION
Promotion concerns the message the firm sends out to potential consumers. It
provides information and persuades people. It creates awareness, stimulates demand,
differentiates the product and influences public behaviour. Promotion wont make a
bad product that no one wants a success, although the absence of promotion might be
that a good product is not successful. Promotion includes all the activities or tools a
company uses to communicate or promote its product in the market.
54
PROMOTIONAL TOOLS OR PROMOTION MIX
PERSONAL SELLING:
It involves personal confrontation either by phone or face. It is an expensive and time
consuming tool of promoting the product.
ADVERTISING:
It is defined as a paid non-personal communication with a target (usually mass)
market. It is cost effective and can reach a large number of people. It can also be used
for long term or short term objectives.
There are various forms or mediums through which firms can advertise.
BROADCAST MEDIA
Television
Radio
Cinema
PRINT MEDIA
Newspapers
Magazines
Leaflets
OUTDOOR MEDIA
Posters and Billboards
PUBLIC RELATIONS AN PUBLLICITY:
Public relations is an umbrella term and refers to the totality of the organisation’s
behaviour with respect to the society in which it operates. They maybe regarded as
good or bad and is reflected in the company’s reputation and image.
55
SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly the case that
some sponsorship goes on to generate positive publicity for the organisation.
SALES PROMOTION:
It is direct inducement which offers an extra value of incentive for the product. It is
directly related to sales and induces an immediate response from the consumers.
Trade promotion : These campaigns are run for the trade (intermediaries who
stock or push the product) to encourage them or stock or push the product.
Consumers sales promotion: These are sales promotions aimed at the end
customer.
DIRECT MARKETING:
It is an interactive system of marketing which uses one or more advertising media to
effect a measurable response at any locations.
DIRECT MARKETING INCLUDES:
Direct mail
Telemarketing
Door to door selling
Direct response advertising: ‘Phone now’ or ‘fill in the coupon’ ads.
Home shopping of various types.
Mail order.
Factors that guide a marketers decision in selecting a promotion mix:
(A) Nature of product
(B) Overall marketing strategy
(C) Buyer readiness stage
(D) Product life cycle stage.
56
PROMOTION POLICY
A. COMPANY GIVE ADVERTISEMENT IN DIFFERENT MEDIA VEHICLES
TIME TO TIME. LIKE IN TV, MAGAZINES, NEWSPAPER, ETC.
B. HERO HONDA ALSO ORGANISES FREE SERVICE CAMPS EVERY
YEAR.
C. HERO HONDA ALSO TAKE PART IN TRADE FAIR
D. HERO HONDA WITH THE HELP OF ICICI BANK PROVIDES LOAN TO
THE CUTOMERS & ALSO PROVIDE EASY MONTHLY INSTALMENT
SCHEME TO CUSTOMERS.
HERO HONDA GIVES HUGE COMMISSION TO ITS DEALERS.
57
SWOT ANALYSIS
STRENGTHS
Hero Honda introduced first-stroke bike in the India market
Hero Honda gives 80 km/litre.
Huge sale network (3500 Dealers)
Better sale service
WEAKNESSES
Suppose to be very sophisticated
Not fit for rural India.
OPPORTUNITIES
Hero Honda is the first manufacture to launch eco-friendly bikes with 4-stroke
engines. They have attained a strong good will and popularity in the industry
and the consumers.
Therefore, it has huge potential to retain existing consumers and develop new
market share.
As Government policies are amended against pollution in metro cities, Hero
Honda being 4-stroke bike manufacture have great opportunities to explore its
new innovations and technologies.
THREATS
Main Threats for Hero Honda are their competitors like: -
Bajaj Auto
TVS-Suzuki
Escorts Yamaha
58
59
DATA ANALYSIS
1. Please mention your age group
18-20 21-25
26-30 31-35
36- above
60
2.) Please mention your income group( per annum in thousand)
75-100 100-125
125-150 150-175
175 & above
61
3) Gender
Male Female
62
4. Name three motorcycle companies that come to your mind
Hero Honda Motor Ltd.
Bajaj Auto Ltd.
Escort Yamaha Motors Ltd.
Royal Enfield
TVS Ltd.
63
5. What are the things that you look while purchasing a bike?
Fuel efficiency
Looks
Low maintenance cost
Reliability( less chances of breakdown)
Least physical efforts
Low price
64
6. Which other bike would bike you have preferred to buy?
Yamaha LML
Tvs motors Bajaj Pulsar
65
66
CONCLUSIONS
The study, which I conducted on the “In-depth Analysis of Hero Honda Motors Ltd”.
in the area of Marketing & Human Resource Management has been a very gratifying
experience at the outset, the objectives were to cover the whole marketing strategies
and Human Resource policies adopted by HHML. The entire report has been effort to
do just that.
Through out the study I found Hero Honda bikes are very new & use modern
technology in their bikes. As a result they give better performance then other bikes in
the market & required less maintenance. Hero Honda also provides good after sale
service to the customer.
Hero Honda has managed to put in spectacular performance going from strength to
strength despite increase in competition, the company’s sales have witnessed an up
trend, registering an average growth of 42% in the three years under review.
Hero Honda has managed to achieve this because of its strong brand image and
proven product quality underpinned the performance growth in recent years. Apart
from the strong brand “Splendor” the company’s presence across the spectrum of the
motorcycle market helped it exploit the growing demand for 4-stroke motorcycles.
At the lower, end, the company has CD 100 and CD100 SS and at the middle level
splendor, passion & joys. The CBZ the CBZ range is targeted, at the premium
segment. Thus one may say that the marketing strategies adopted by Hero Honda have
really paid-off, as the company has constantly managed to increase its market share
and also increase its sales .Which is really amazing for a company which has been a
market leader to maintain its strong position in the wake of growing competition from
its competitors who have been trying to grab a strong share in the market by
launching latest technology products.
Last three data show that demand of Hero Honda bikes increase & market trends
indicated that in future more demand for Hero bikes expected.
67
Hero Honda has been very understanding to its employees. It treats all its employees
as the biggest asset of the company. Its innovative H.R. policies are made to ensure
that the best of talent, which the company employs, receives the best of talent, which
the company employs, receives the best of remuneration. Also the non-monetary
incentives given to the employees are such as to maintain the motivation to an time
high.
68
69
RECOMMENDATIONS
No matter how much on organization progresses it always lack something. These are
shortcoming of every company. After completing my report on new Hero Honda
motors Ltd., I have some suggestions to offer. The suggestions can be proved useful
for the company as they have feasibility and viability.
The Recommendations are: -
Hero Honda Motors only manufacture a wide range of 4-stroke bike. But in my
opinion 2 stroke bikes have a better pick-up. So in order to letter to the need of a
large segment of customers, who want a better pick-up bike, Hero Honda should
go into the manufacture of 2 stroke bikes.
The company has always targeted urban sector of Indian population. But in the
rural sector Escorts, Rajdoot enjoy a great market share. So, therefore Hero Honda
should target this upcoming market.
Hero Honda should keep a strict watch on competitions. For instance Yamaha has
introduced a 4-stroke bike “YBX” whose features are almost same as Splendors.
The company should work more on public relation.
70
71
ANNEXURE
QUESTIONNAIRE
CONSUMER SURVEY
Name :______________________
Address:_____________________
Q1. Please mention your age group
18-20 21-25
26-30 31-35
36- above
Q2.) Please mention your income group (per annum in thousand)
75-100 100-125
125-150 150-175
175 & above
Q3) Gender
Male Female
Q4) Martial Status
Married Unmarried
Q5) please mention your occupation 0
Officials Clerical or Salesmen
Student First Jobbers Retired
Q6) Name three motorcycle companies that come to your mind
Hero Honda Motor Ltd.
Bajaj Auto Ltd.
Escort Yamaha Motors Ltd.
Royal Enfield
72
TVS Ltd.
Q7) What are the things that you look while purchasing a bike?
Fuel efficiency
Looks
Low maintenance cost
Reliability( less chances of breakdown)
Least physical efforts
Low price
Q8) How did you get to know about Hero Honda that you having at present?
Advertisement
Family information
Friend’s recommendation
Dealer’s recommendation
Q9) Which other bike would bike you have preferred to buy?
Yamaha LML
Tvs motors Bajaj Pulsar
Q10) Prefer Hero Honda splendor than other bike because of:
Fuel economy
Less physical efforts
Better looks
Low maintenance cost
Q11) Would prefer TVS Victor to Hero Honda Splendor because of:
Fuel economy
Price
Brand image
Low maintenance cost
73
Q12) what is the image of HERO HONDA in your mind?
Economical
Durable
Smooth Bike
Safe Bike
Rough and Tough
74
75
BIBLIOGRAPHY
BOOKS
Marketing Management – Kotler Philip
Marketing – Ghandhi J. C.
Principles of Marketing – Palmer Adrian
Marketing Management – Ramaswamy V. S.
NEWS PAPERS
The Economic Times.
The Times Of India.
MAGAZINES
Business World – June 2006
India Today.- June 2007
WEB SITES
SPECIFIC SITES –
www.herohonda.com
www.indianinfoline.com
www.premjis.com
www.sirindia.com
SEARCHING SITES –
www.google.com
www.indiatimes.com
www.yahoo.com
www.webcrawler.com
www.askjeeves.com
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