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A
PROJECT REPORT
ON
CUSTOMER BUYING BEHAVIOR
WITH REFERENCE TO
PROJECT REPORT SUBMITTED TO
DEPARTMENT OF BUSINESS ADMINISTRATION O.U
IN PARTIAL FULFILLMENT OF THE REQUIREMENT
FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSINESSADMINISTRATION
SUBMITTED
BY
M.SURESH
VATHSALYA COLLEGE OF BUSINESS MANAGEMENT
BHONGIR, NALGONDA DIST
(2008 -2010)
(Affiliated to osmania university)
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DECLARATION
I hereby declare that this Project Report titled CUSTOMER BUYINGBEHAVIOR
withreference toHERO HONDA BIKE!Submitted by me to the Department
of Business Management, VATHSALYA COLLEGE OF BUSINESS
MANAGEMENT affiliated to Osmania University, is a bonafide work undertaken by
me and it is not submitted to any other University or Institution for the award of any
degree diploma / certificate or published any time before.
Date :
Place :
(M.SURESH)
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ABSTRACT
To gain an understanding of the theories and concepts of Buyer
Behavior.to apply Buyer Behavior concepts to understand what customer do in
the real world.To improve skills in the research and analysis of customer
segments, demand, and market potential.To utilize knowledge of the Buyer
Behavior to enhance strategic decision-making.To analyze the Buying Behavior
of the customer when selecting a particular brand.
Bridging the gap between performance expectations of the customers and
Most of the people looking for Mileage in Bikes and Next preference are given to
the Style and Look of the Bike. In the case of HERO HONDA Bikes the
customer is considering Style & Look of the bike and next is Mileage.
Performance delivered to them will ensure customer delight. It is advised that
the customers are educated about the services and employees updated on the
expectations of the customers. Even the employees in the retail outlets have to be
well trained to help the customers.
The data for the study has been obtained from secondary sources i.e., from
various books and journals fact sheets of different bikes and websites. From this
it can be seen that 96.77% ofHERO HONDA customers are satisfied with their
bikes.
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ACKNOWLEDGEMENT
It is indeed a pleasant task to thank all the people who have contributed towards the
successful completion of this project. I express my sincere gratitude to Mr.GOPINATH
ROY(Sales Manager)PHOENIX MOTORS, for his able supervision during the course
of the project. My sincere thank to our project guide MR SRIKANTH and Head of the
Department of MARKETING and other faculty members at VATHSALYA COLLEGE
OF BUSINESS MANAGEMENT.
I extremely thankful for one and all that helped me in directly and indirectly for
the successful completion of this project.
(M.SURESH)
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Chapter-1 : INTRODUCTION
Chapter-2 : COMPANY PROFILE
PHOENIX PROFILE
HERO HONDA PROFILE
Chapter-3 : OBJECTIVES OF THE STUDY
Chapter-4 : RESEARCH METHODOLOGY
Chapter-5 : DATA ANALYSIS
Chapter-6 : CONCLUSIONS & FINDINGS
Chapter-7 : SUGGESTIONS&RECOMMENDATIONS
Chapter-8 : APPENDIX
Chapter-9 : BIBLIOGRAPHY
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INTRODUCTION
What is consumer behavior?
Activities people involved in when selecting , purchasing , and using products so as to
satisfy needs and desires. Consumer behaviorinvolves the psychological process that
consumers go through in recognizing needs, finding ways to solve these needs, making
purchase decision (e.g., whether or not to purchase a product and, if so, which brad and
where), interpret information, make plans, and implement these plans (e.g., by engaging
in comparison shopping or actually purchasing a products).
SOURCES OF INFLUENCE ON THE CONSUMER
The consumer faces numerous of influence. Often, we take cultural influences for
granted, but they are significant. An American will usually not bargain with a
storeowner. This, however, is common practice in much of the world. Physical factors
Also influence our behavior. We are more likely to buy a soft drink when we are thirsty.
For example, and food manufacturers have found that it is more effective to advertise
their products on radio in the late afternoon when people are getting hungry. A persons
self image will also tend to influence what he /she will buy an upwardly mobile
manager may buy a flashy car to project an image of success. Social factors also
influence what the consumers buyoften, consumers seek to imitate others whom they
Admire, and may buy the same brands. The social environment can include both the
mainstream culture (e.g., Americans are more likely to have corn flakes/ham and eggs for
brake past than to have rice, which is preferred
in many Asian countries) and a sub culture (e.g., rap music often Appeals to a segment
within the population that seeks to distinguish itself from the main stream population).
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Thus sneaker manufacturers areeager to have there products worn by admired athletes.
Finally, consumer behavior is influences by learning you try a hamburger and learn
that it satisfies your hunger and tastes good, and the next time you are hungry, you may
consider another hamburger.
DECISION-MAKING INVOLVES SEVERAL STEPS
Problem recognition -- you realize that something is not as it should be. Perhaps, for
example, your car is getting more difficult to start and is not accelerating well.
Information searchwhat are some alternative ways of solving the problem? You
might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi,
or ride a skateboard to work.
Evaluation ofalternatives
Purchase decision
Purchase evaluationInformation search
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Need recognition
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A customer can obtain information from several sources:
Personal sources: family, friends, neighbors etc
Commercial sources:advertising, sales forces retailers, dealers,
packaging, point-of-sale displays.
Public sources: news papers, radio, television, consumer organizations,
specialist magazines.
Experimental sources: handling, examining, using the product
Internal and external search for information to make a decision
Internal search:
Scan memory.
External search:
Shopping,
Personal sources,
Public media,
Advertisements.
Evaluation of alternatives A skateboard is inexpensive, but may be ill-suited for
long distances and for rainy days.
Purchase stage, and sometimes a post-purchase stage (e.g., you return a product to
The store because you did not find it satisfactory). In reality, people may go back and
fourth between the stages. For example, a person may resume alternative identification
during while evaluating already known alternatives.
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The decision maker(s) have the power to determine issues such as:
Whether to buy?
Which product to buy?
Which brand to buy?
Where to buy it? And
When to buy?
Note, however, that the role of the decision maker is separate from that of the purchaser.
From the point of view of the marketer, this introduces some problems since the
purchaser can be targeted by point-of-purchase (POP) marketing effort that cannot be
aimed at the decision maker. Also note that the distinction between the purchaser and
decision maker be some what blurred: The decision maker may specify what kind of
product to buy, but not which brand, The purchaser may have to make a substitution if
the desired brand is not in stock, The purchaser may disregard institutions (by error or
deliberately).
BUYER BEHAVIOUR CULTURAL FACTORS
Cultural factors have a significant impact on customer behavior. Cultural is the most
basic cause of a persons wants and behavior. Growing up, children learn basic values,
Perception and wants from the family and other important group. Marketing are always
trying to spot cultural shift which might point to new products that might be wanted by
customer or to increased demand. For example, the cultural shift towards greater concern
about health and fitness has created opportunities (and now industries) servicing
customers who wish to buy:
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Low calorie foods
Health club memberships
Exercise equipment
Activity or health-related holidays etc.
Similarly the increased desire for leisure time has resulted in increased demand for
convenience product and service such as microwave ovens, ready meals and direct
marketing service businesses such as telephone banking and insurance.
Each culture contains sub-cultures groups of people with share values. Sub-cultures
can include nationalities, religions, racial groups , or group of people sharing the same
geographical location. Sometimes a sub-culture will create a substantial and distinctive
market segment of its own.
BUYER BEHAVIOR SOCIAL FACTORS:
Introduction A customers buying behavior is also influenced by social factor, such as
the group to which the customer belongs and social status. In a group, several individuals
may interact to influence the purchase decision. The typical roles in such a group
decision can be summarized as follows:
Initiator the people who first suggest or think of the idea of buying a particular product
or service.
Influencer A person whose view or advice influences the buying decision
Decider The individual with the power and/or financial authority to make the ultimate
choice regarding which product to buy.
Buyer The person who concludes the transaction.
User The person (persons) who actually uses the product or service.
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Decision-Making Process: Low Involvement Products
Purchase Decision: Post Purchase Consumption;
Minimal Evaluation;
TYPES OF BUYING DECISION BEHAVIOUR
Problem
Recognition
Minimal
Information
Search
Purchase
Decision
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Buying behavior differs for a tube of toothpaste, a tennis racket, an expensive camera,
and a new car. More complex decisions usually involved more buying participants and
more buyer deliberation.
Significant differences
Between brands
Few differences
Between brands
Consumer buying behavior
is based on the degree of
buyer involvement and the of differences among brands.
Complex Buying Behavior:
Consumer buying behavior in situations characterized by high consumer involvement in a
purchase and significant perceived differences among brand.
Dissonance- Reducing Buying Behavior:
Consumer buying behavior in situations characterized by high involvement but few
perceived differences among brand.
Habitual Buying Behavior:
Consumer buying behavior in situations characterized low consumer involvement and
few significant perceived brand differences.
Variety-Seeking Buying Behavior:
ComplexBuying behavior
Variety-seekingBuying behavior
Dissonance-reducing
Buying behaviorHabitual
Buying behavior
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INTRODUCTION ABOUT PHOENIX
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DEALER PROFILE (PHOENIX MOTORS)
It was established in the year of 2003 March 21st. The owner name is CH.MADHU
MATHI; the firm is located at Habsiguda in Hyderabad.
It was started with few employees and very soon it has provided an opportunity to nearly
120 members. It is now with nearly 120 employees. Now the PHOENIX had two
authorized outlets in twin cities, One is at Ramanthapur and other one at Habsiguda.
PHOENIX is providing all kind of finance support to the customers, and the
customers are no need to go for the banks to get the loan finance. PHOENIX itself
provides bank executives to help the customers in vehicle loan. They are available in the
showroom to explain about the scheme to the customers. It will make the customers easy
in decision making process.The customers also get the good service from the PHOENIX.
Here all kind of the Hero-Honda bikes spare parts are available. After purchasing the
bike PHOENIX is providing after sales service.
SALES STRATEGY OF PHOENIX MOTORS:
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Averagely they are selling 25 vehicles per day. PHOENIX motors PVT LTD. Is the
A.P s No.1 dealership in sales and other Activities? It is a QLAD (quality leader through
quality dealer). At PHOENIX Motor they gave the quality service to the customers why
because The cost is long forgotten but the quality is remembered for ever. They
treat quality has a...
Q Quest for excellence
U Understanding customers needs
A Action to achieve customers appreciation
L Leadership determined to be a leader
I Involving all the people
T Team Spirit to work for a common goal
Y Yard sticks to measure programs.PHOENIX has tie-up with Govt banks as SBI, PNB, SBH as well as private banks like
ICICI, HSBC, HDFC and so on. So it provides all type of finance facilities to the
Customers.
ADVERTISING STRATEGY OF PHOENIX MOTORS:
They are giving the Adds through Newspapers, Wall paintings, Hoardings and Field
staff. They are upgrading sales by introducing the schemes, Group Bookings, Institutional
sales and customer Door-to-Door activities.
THE MARKETED BIKES OF PHOENIX (All Hero Honda Model)
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CUSTOMER RELATIONSHIP:
To entertain the customers the showroom providing a customers huge having pool
game, Internet facility and television with home theatre system. They provide bike
maintenance programs on every week. According to other dealers PHOENIX motors in
first in sales and best in service. They treat customer, is the very important person at
PHOENIX motors customer satisfaction is their motto, why because, the well satisfied
customer is the best advertisement. They provide better value for the customers and as
well as employees also. At PHONIX motors the customer is the boss.
SOCIAL SERVICE ACTIVITIES
PHOENIX Motors participates in social service activities. The Phoenix motors
organize a BLOOD DONATION CAMP for the trust in every year. They motivated on
the customers to participated in this camp and also provide Certificate for the customers.
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INTRODUCTION ABOUT HERO HONDA MOTORS
Hero Honda Motors Ltd.
"Desh ki Dhadkan"
Hero Honda is the World's No.1 two-wheeler manufacturing company having the
trust of more than 5 million customers. The company is a joint venture of Hero Cycles of
India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma, Passion, Pleasure
and Splendor are its famous brands on Indian roads.
Quick Facts:
FounderMunjal Brothers: Mr. Satyanand Munjal, Mr. Brijmohan Lall
Munjal and Mr. O. P. Munjal.
Year of Establishment 1984 (The Hero Group was established in 1956)
Mission "Its our mission to strive for synergy between technology,systems and human resources, to produce products and services
that meet the quality, performance and price aspirations of ourcustomers. While doing so, we maintain the highest standards of
ethics and societal responsibilities."- Mr Brijmohan Lall Munjal, Chairman & MD
Foundational Work Before the establishment of the Hero Group in 1956, Munjal
Brothers use to manufacture bicycle components in the early
1940's.
Industry Automotive - Two Wheelers
Business Group The Hero Group
Capitalization Ratio Hero Group - 26%
Honda Motor Co., Ltd. - 26%Others - 48% (listing)
Listings & its codes BSE - Code: 500182NSE - Code: HERO HONDA
Bloomberg - Code: HH@IN
No. of Sales Outlets 1500+
Joint Venture The Hero Group (India) with Honda Motor Co., Ltd. (Japan)
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Registered & Corporate Office 34, Community CentreBasant Lok, Vasant Vihar
New Delhi - 110057
Tel.: +(91)-(11)-26142451 - 59
Fax: +(91)-(11)-26143321 / 3198 / 1830; 26152453 / 2132
Work Station 69 Km StoneNew Delhi-Jaipur HighwayDaruhera - 121106, Haryana
Website www.herohonda.comwww.herogroup.com
Segment and Brands:
Products Brands
Two-WheelersAchiever CBZ* CBZ Xtreme CD Deluxe
CD100SS CD DAWN Glamour Hunk
Karizma Passion Plus* Pleasure Splendor
Splendor+* Super Splendor*
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http://www.herohonda.com/http://www.herogroup.com/http://www.surfindia.com/automobile/hero-honda-achiever.htmlhttp://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://www.surfindia.com/automobile/hero-honda-cd-deluxe.htmlhttp://www.surfindia.com/automobile/hero-honda-cd-dawn.htmlhttp://www.surfindia.com/automobile/hero-honda-glamour.htmlhttp://www.surfindia.com/automobile/hero-honda-hunk.htmlhttp://www.surfindia.com/automobile/hero-honda-karizma.htmlhttp://www.surfindia.com/automobile/hero-honda-passion-plus.htmlhttp://www.surfindia.com/automobile/hero-honda-pleasure.htmlhttp://www.surfindia.com/automobile/hero-honda-splendor.htmlhttp://www.herohonda.com/http://www.herogroup.com/http://www.surfindia.com/automobile/hero-honda-achiever.htmlhttp://www.surfindia.com/automobile/herohonda-cbz-xtreme.htmlhttp://www.surfindia.com/automobile/hero-honda-cd-deluxe.htmlhttp://www.surfindia.com/automobile/hero-honda-cd-dawn.htmlhttp://www.surfindia.com/automobile/hero-honda-glamour.htmlhttp://www.surfindia.com/automobile/hero-honda-hunk.htmlhttp://www.surfindia.com/automobile/hero-honda-karizma.htmlhttp://www.surfindia.com/automobile/hero-honda-passion-plus.htmlhttp://www.surfindia.com/automobile/hero-honda-pleasure.htmlhttp://www.surfindia.com/automobile/hero-honda-splendor.html8/8/2019 Suresh Final Project
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BOARD OF DIRECTORS
No.Name of the Directors Category of Directorship
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Yutaka Kudo Whole-time Director
5 Mr. Om Prakash Munjal Non-executive Director
6 Mr. Sunil Kant Munjal Non-executive Director
7 Mr. Tatsuhiro Oyama Non-executive Director
8 Mr. Masahiro Takedagawa Non-executive Director
9 Mr. Takashi Nagai Director
10 Mr. Narinder Nath Vohra Non-executive & Independent Director
11 Mr. Pradeep Dinodia Non-executive & Independent Director
12 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent Director
13 Mr. Analjit Singh Non-executive & Independent Director
14 Dr. Pritam Singh Non-executive & Independent Director
15 Ms. Shobhana Bhartia Non-executive & Independent Director
16 Dr. Vijay Laxman Kelkar Non-executive & Independent Director
17 Mr. Sunil Bharti Mittal Non-executive & Independent Director
ACHIEVEMENTS:
Year Awards & Recognitions
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2008 NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year
Overdrive Magazine - Bike Manufacturer of the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
Overall "Bike of the Year" - CBZ X-treme
"Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Bike Technology of the Year" - Glamout PGM FI
"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine
"Bike of the Year" - CBZ X-treme by Overdrive Magazine
Ranked CBZ X-treme " Bike of the Year" - by B S Motoring Magazine
Most Trusted Company , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards
2006.
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company)
One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed
companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award
Best in its class awards for each category by TNS Total Customer Satisfaction Awards2006:
Splendor Plus (Executive)
CD Deluxe (Entry)
Pleasure (Gearless Scooters)
Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006
Adjudged 7th Top Indian Company by Wall street Journal Asia (Top Indian Two Wheeler
Company)
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Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006
Hero Honda Splendor rated as India's most preferred two-wheeler brand at the AwaazConsumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during 2003-04 for
two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export PromotionCouncil
The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year
Bike of the Year - Achiever
Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)
NDTV Viewers' Choice Award to Glamour in the bike category
2005 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC inthe 'Automobiles' category
Bike Maker of the Year Award by Overdrive Magazine
ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private
sector category by ICWAI
10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the
period 1991-2005
2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top
10 Indian companies)
GVC Level 1 (Highest Rating) by CRISIL for corporate Governance
Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook
Money
Corporate Excellence Award 2004 by Indian Institute of Materials Management
Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR
Excellence
ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of
Company Secretaries of India
2003 Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top
10 Indian companies)
Most Respected Company in Automobile Sector by Business World
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Bike Maker of the Year by Overdrive Magazine
2002 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top
10 Indian companies)
Company of the Year of ET Awards for Corporate Excellence
Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial
Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best
Investor Relations' category, by Asia money .
Highest Wealth Creating Company of the Year Award by the Money
GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance
2001 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the top10 Indian Companies)
Winner of Three Leaves Award for showing Corporate Environment Responsibility in the
Automobile Sector by Centre for Science & Environment
1999 National Productivity Award for the Best Productivity Award in the category ofAutomobile & Tractor presented by Vice President of India
1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9thamongst the most investor rewarding companies in India
1995 National Award for outstanding contribution to the Development of Indian Small ScaleIndustry (NSIC Award - Presented by President of India)
1991 Economic Times-Harvard Business School Award for Corporate Performance to HeroHonda Motors Ltd.
SALES PERFORMANCE HERO HONDA ONCE AGAIN OUTPERFORMS
INDUSTRY ON GROWTH IN Q2 (FY 2007-2008)
Impressive performance across segments turnover ofRs. 2391 Crores in Q2 Ebidta
of 12.39%
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Aug'06 Aug'07 FY 06-07 FY 07-08
Total Sales 2,15,076 2,40,875 12,82,860 12,63,254
MISSION STATEMENT
We, at Hero Honda, are continuously striving for synergy between technology,
systems, and human resources to products and services that meet the quality,
performance, and price aspirations of our customers. While doing so, we maintain the
highest standards of ethics and societal responsibilities, constantly innovate products and
processes, and develop teams that keep the momentum going to take the company to
excellence in the new millennium.
EXECUTIVE SUMMARY
The venerated patriarch and visionary of the Hero Group, Mr. Brijmohan Lall Munjal, is
A first generation entrepreneur who started very small and through sheer hard work and
perseverance has today made his two wheeler venture the Worlds No.1 Two Wheeler
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company, a distinction hitherto held by a Chinese company. That is not all the
motorcycle Splendor which was launched in 1995 and sold 791,000 units in 2001 has
emerged as the largest selling motorcycle model in the world. The Hero comprises many
backward integrated two wheeler related companies, of which the Hero Cycle and Hero
Honda constitute the major players. He produces 5.7 million bicycles and over 1.42
million two wheeler annually. Also, Hero Cycle boasts of one of the highest labour
productivity rates in the world.
Hero cycle has been the largest manufacturer of bicycles in the world since 1984 and
figures in the Guinness Book of World Recorders. These honors have come through
sheer discipline, which according to Mr.Munjal is the refining fire by which talents
become ability. According to him ambition, confidence, enthusiasm and success are
produced by coueage, faith and hard work.
No wonder, the leading company of the group, Hero Honda, declared a whopping 850%
divided for the financial year ended 31st March 2008. It grew over 500% in five years.
Other highlights are:
For the year 2007-08: Volume up by 38%, net profit soars by 88%, total turnover up by
42% Achieves a high 48% motorcycle market share and 33% two wheeler market share.
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Over the last five years, the companys total turnover grows by a whopping 580% and
Profit after Tax by 919%
Total Turnover of Rs.45, 394,900,000 (EURO 1,043,560,920)
Profit after Tax Rs.4, 629, 300,000 (EURO 106,420,690)
Hero Honda has surpassed by leaps and bounds the other competitors in this space who
are in joint venture with giants like Kawasaki, Yamaha, and Suzuki etc. Hero Honda is
26% owned by Honda of Japan and the balance is held by the Munjals and Indian
public. The secret of the success is the brilliant management of dealership. In fact, his
rivals attribute this phenomenal success to his excellent channel management skills. Hero
Honda has a reputation off being the most fuel-efficient and the largest selling Indian
motorcycle. It commitment of providing the customer with excellence is self-evident. A
rich background of producing high value products at a reasonable price led the worlds
largest manufacturer of motorcycle to collaborate with the worlds bicycle manufacturer.
It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so
harmonious that Hero Honda has managed to achieve indigenization of over 95 percent, a
Honda record worldwide. Technical promotions and excellent marketing helped Hero
Honda establish itself as an intelligent purchase.
It unique feature like fule conservation, safety riding courses and mobile workshops
helped the group reach in the interiors of the country Finance services helped acilitate
purchase, as did an efficient dealer network across the country. Well-entrenched in the
domestic market, Hero Honda Motors Ltd. Turned its attention overseas, and export have
been steadily on the rise.Over the years, the Company has received its share of accolades,
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including the National Productivity Councils Award (1990-91), AND THE Economic
Time Harvard Business School Association of India Award, against 200 contenders.
ADDRESS
HERO HONDA MOTERSLIMITED
34, Community Center,
Basant Lok, Vasant Vihar,
New Delhi 110 057
Phones: 6142451, 6144121
Cable: HONDA BYKE
Fax: 6143321, 6143198, 6141830, 6152453, 6152132
URL: www.herohonda.com
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OBJECTIVES OF STUDY
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Personal interviews:
It involve in-depth questioning of an individual about his or her interest in or experiences
with a product . The benefit here is that we can get really into depth (when the respondent
says something interesting, we can ask him or her to elaborate), but this method of
research is costly and can be extremely vulnerable to interviewer bias.
Projective techniques: These are used when a consumer may feel embarrassed to admit
to certain opinions, feelings, or preferences. For example , many older executives may
not be comfortable admitting to being intimidated by computers. It has been found that in
such cases, people will tend to respond more openly about someone else. Thus, we may
ask them to explain reasons why a friend has not yet bought a computer, or to tell a story
about a person in a picture who is or is not using a product . The main problem with this
method is that it is difficult to analyze responses.
Observation of consumers: It is often a powerful tool. Looking at how consumers select
products may yield insights into how they make decisions and what they look for. For
example, some American manufacturers were concerned about low sales of their products
in Japan. Observing Japanese consumers, it was found that many of these Japanese
Consumers scrutinized packages looking for a name of a major manufacturer- the product
specific-brands that are common in the U.S. (e.g., Tide) were not impressive to the
Japanese, who wanted a name of a major firm like Mitsubishi or Proctor & Gamble.
Observation may help us determine how much time consumer spends comparing prices,
or whether nutritional labels are being consulted.
Physiological measures: These are occasionally used to examine consumer response.
For example, advertisers may want to measure a consumers level of arousal during
various parts of an advertisement.
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Some cautions should be needed in marketing research:
First, In general, research should only be commissioned when it is worth the cost.
Thus, research should normally be useful in making specific decisions.
What size should the product be?
Should the product be launched?
Should we charge?
Secondly, Marketing research can be, and often is, abused. Managers frequently have
their own AGENDAS (e.g., they either would like a product to be launched or would
prefer that it not be launched so that the firm will have more left over to tackle their
favorite products). Often, a way to get your way is to demonstrate through Objective
research that your opinions make economic sense.
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NEED AND IMPORTANCE
Indian consumers face an increasingly complex and diverse market place. One in
six Indians say that they have been the victim of a major consumer fraud or swindle at
some point , and three in four report having a Bad Buying experience. Consumers are
vulnerable to unfair or deceptive business practices and potentially to fraud, for a variety
of reasons that range from the way business conduct themselves to their own behaviors,
attitudes and levels of knowledge. It is a well-known fact that most of the profits that a
company earns is from a very small segment of its customer base. Retaining this base
requires huge amount of effort from the company in terms of services, benefits etc.
especially in the case of the bikes industry, the problem of customer retention is huge.
The study emerges from the fact that a bike, which used to be a luxury around 3 to 4
years ago, has slowly changed status and become a necessity. India has witnessed a sharp
increase in the number of bike users over the past 3 to 4 years. India had millions of bike
users as compare with earlier. Moreover,
consumers are being lured day in and day out by the fabulous offers provide by the bike
companies (actually only on the face of it) which distracts them and diverts them into
thinking wrongly and suffering at a later stage.
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AIM OF THE STUDY
The study attempts to analyze the needs and expectations of consumers
from their service providers and how companies are able to match up them. It takes a
look at the consumer buying process and strategies followed by the companies to attract
consumers and to retain them in the long run so that they do not change to any other
company. During the course of the market study, the decision determinants of the
customer are elicited from sample.
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SCOPE OF THE STUDY
The study was undertaken in the twin cities of HYDERABAD and SECUNDERABAD
and was limited to 62 users of HERO HONDA Bikes within these two cities. It is
confined to the collection, analysis, and interpretation of the consumer decision process
and the strategies adopted by the companies to catch the sales from them.
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SOURCES OF DATA
The data will be collected from bothprimary and secondary sources.
Primary Sources: - Primary data will be extracting and summarized through the
distribution of questionnaires.
Secondary Sources:- Secondary data would involve the review of existing literature,
information secured from the internet and the study of information given by the
organization. The marketing researcher should, first explore the Secondary data and if
needed he should go for primary data.
PRIMARY DATA
Primary data gathered for a specific purpose of for specific research project .This is the
data collected for the first time, gathered for a specific purpose of a project.
Primary data can be collected in four ways.
1. Observation Research
2. Focus - group Research
3. Survey Research
4. Experimental Research
Here survey method has been selected for research. It is used to learn about Peoples
knowledge, beliefs, preference and satisfaction etc, and to measure the Magnitude in
Research sample.
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LIMITATIONS OF THE STUDY
1. Since the customer attitudes keep on changing the findings may not be applicable in all
the cases.
2. The size of the sample being relatively small, some of the findings may slightly vary
with those of the larger universe.
3. The study would be confined to the users of the bikes in the twin cities of Hyd and
Sec-bad only.
4. The study would be confined to the information willingly shared by the respondents
and the staff of various bikes organizations.
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METHODOLOGY OF THE STUDY
The methodology adopted for the study was that of the field survey method. A structured
Questionnaire was administered to a total of62 HERO HONDA Bike users in the areas
Hyderabad and Secunderabad. The structured questionnaire was designed to elicit
information on demographic aspects of the respondents. Further, the opinion of the users
was obtained with regard to the promotional strategies being followed by the bike
companies. The demographic aspects include age, education, occupation and income. The
questionnaire contained both open-ended as well as close-ended questions and also
extracted some personal information from the respondents.
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OCCUPATION OF RECIDENTS
A Sample of 62 Consumers of HERO HONDA Vehicle was surveyed. They
were asked questions regarding their Buying decision process. Out of 62 People
surveyed, 19 were Job holders, 12 were Students, and 29 were Business men, remaining
people were others.
STUDENTS JOB HOLDERS BUSSINESS MENS OTHERS
12 19 29 02
STUDENTS
19%
JOB HOLDERS
31%
BUSSINESS MENS
47%
OTHERS
3%
A high Percentage of the individuals surveyed belong to Businessmen. Next in line are
the Jobholders.
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DEMOGRAPHIC PROFILE
Customer buying decision process also depends upon the Age of the Customers. For
Example the age between18-25 is generally like bikes, which are very stylish.
Age between 26-40are generally like bikes which gives more mileage and which are very
Simple to look. And the age between 40&above were like the bikes which are easy to
Ride.
18-25 YEARS 26-30 YEARS 31-40YEARS 41&ABOVE
27 21 11 03
0
5
10
15
20
25
30
18-25 YEARS 26-30 YEARS 31-40YEARS 41&ABOVE
AGE OF THE RESPONDENTS
SOURCE OF AWARENESS
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The stage of buyer decision process in which the consumer is aroused to search for more
information; the consumer may simply have heightened attention or may go into active
information search. The consumer can obtain the information from any of several
sources. Some of those are Paper Ads, Television Ads, Friends & Family, and any others.
The media which is selected by the respondent is:
TELIVISION ADS PAPER ADS FRIENDS OTHERS
09 03 44 06
From the above chart it can be seen that even though the effect of advertising & sales
promotion is spreading, word of mouth referrals still play a vital role in spreading
Product /service awareness.
THE MEDIA WHICH IS MORE INFLUENCED ON PURCHASING
51
TELIVISION
ADS
PAPER ADS
FRIENDS
OTHERS
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DECISION: - The consumer can obtain the information from various ways. Some media
is more influences on customers decision process. This will lead to take the decision on
particular product.
FRIENDS TELIVISION ADS PAPER ADS OTHERS
35 18 03 06
FRIENDS
56%TELIVISION ADS
29%
PAPER ADS
5%
OTHERS
10%
It can be seen from this, that although advertisements and other sales promotional
strategies play an important role in creating awareness, word of mouth referrals seem to
be the key to any long standing business association. Word of mouth referrals play an
important part in expanding the customer base. These people are early adopters.
RATING OF BIKE CHARACTERISTICS
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When customer wants a particular product he will try to get the data from various sources
about the product. In the huge market there is product with various company names and
brand names. So that the customer will find out the various characteristics about the
product. And based on this the customer will take decision.
A product may have various characteristics like a bike will have the characteristics
Mileage
Style & Look
Price
Brand Image
Technology
After Sales Services
Based on the customer need the customer will give the more importance to the
Particular characteristics.
Mileage Style &
Look
Price Brand
Image
Technology After Sales Service
31 17 02 06 05 01
Mileage
Style & Look
PriceBrand Image
Technology
After Sales
Service
PREVIOUS PURCHASE ( BRAND ) OF THE RESPONDENT
A sample of62 customers of Hero Honda vehicle was surveyed. They were asked
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some questions regarding their previous purchase.
Out of 62 surveyed ,38 were No purchase of any bikes, 11 people were HERO HONDA,
03 were TVS, 01 people were YAMAHA, 02 people were BAJAJ, and the remaining
people were have other brands.
0
5
10152025
30
3540
HERO
HONDA
YAMAHA
TVS
BAJAJ
OTHER
S
NOPUR
CHASE
From the above most of the people dont have any previous purchase of vehicles. And
next in line is HERO HONDA previously purchased customers.
THE PRIMARY REASON THAT HAS MADE THE RESPONDENT TO
CHOUSE THIS BIKE ONLY
The most prompted product characteristic of the customer in decision process on the
HERO HONDA YAMAHA TVS BAJAJ OTHERS NO PURCHASE
11 01 03 02 07 38
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following alternatives.
STYLE LOOK 17
MILEAGE 34
TECHNOLOGY 05
AFTER SALES SERVICES 01
PRICE 02
BRAND IMAGE 06
0
5
10
15
20
25
30
35 STYLE LOOK
MILEAGE
TECHNOLOGY
AFTER SALESSERVICES
PRICE
BRAND IMAGE
When the customer wanted to purchase the bike he will consider all the characteristics of
the bikes. In the case of HERO HONDA bikes the customer is considering Mileage of the
bike and next in line is Style & Look.
IS MILEAGE A BIG ISSUE FOR THE RESPONDENT
A sample of62 customers of Hero Honda vehicle was surveyed. Out of 62 surveyed,
most of the people were preferred Mileage as a major factor. and the remaining people,
like students were preferred style & look only and then go for Mileage.
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YES 51
NO 11
0
10
20
30
40
50
60
YES
NO
From the above, Most of the people were preferred Mileage as a major factor.
IS HERO HONDAS BIKE HAS A FIT IN LOOK
A sample of62 customers of Hero Honda vehicle was surveyed. Out of 62 surveyed,
most of the people were attracted with the Style & Look of the HERO HONDAS
bikes/products.
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YES 61
NO 01
0
10
20
30
40
50
60
70
YES
NO
From the above, Most of the people were satisfied regarding style & look of the
HERO HONDAS bike/product.
WHAT IS THE SPECIAL FEATURE IN HERO HONDAS BIKE, WHICH
CANT FOUND IN ANY OTHERS
A sample of 62 customers of Hero Honda vehicle was surveyed. Out of 62 surveyed,
most of the people were agreed with the updating Technology of the HERO HONDA
bikes/products...
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STYLE LOOK MILEAGE TECHNOLOGY CANT SAY OTHERS
11 19 28 04 00
STYLE LOOK
18%
MILEAGE
31%
TECHNOLOGY
45%
CANT SAY
6%
OTHERS
0%
From the above graph maximum people are accepted Technology as the special
feature. And next in line is Mileage.
INFLUENCES OF THE SUGGESTION ON PURCHASE DECISION
Before purchase the product consumer will try to get more information from their
friends and relatives when the customer likes to take the bike, he generally go to his
friends, who had the same or other bike to know about the bike. Some people go for his
family to select the bike. Some people will go for local mechanic to know about various
bikes and their performance, Some will directly go for showroom and get the details from
the Showroom person and he will take the suggestion which bike is suitable for him.
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The respondent will take the suggestions from various people:
FAMILY FRIENDS LOCAL MECHANIC SHOWROOM PERSONNEL
14 32 14 02
FAMILY
23%
FRIENDS
51%
LOCAL MECHANIC
23%
SHOWROOM
PERSONNEL
3%
From this it can be seen that most of the customers were taking the suggestions from the
Friends only and next in line come to the Local mechanic as well as Family.
DECISION MAKING
After collecting the information the consumer will evaluate the information. after
evaluating the information he will go for purchase decision . the customer will take the
decision is own/others. Generally, when the customer is a student, the parent may take
the final decision.
The customer will take the decision on their own:
YES 60
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NO 02
YES
NO
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
YES NO
From this it can be seen that 97.7% of the customers are taking decision on their own,
In some situations like when the customer is student then their parents may in decision
making process.
PRODUCT PERFORMANCE EVALUATION
After evaluating all the information the consumer will to purchase the product.
After purchasing the product only he get to know about the performance of the product.
Before purchasing the product he may expect something from the product after buying
the product he will compare whether the product is meeting his expectations or not.
The customers purchased product performance met their
expectations:
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The number of respondents who are satisfied with their decision:
YES 60
NO 02
YES
NO
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Y ES NO
From this it can be seen that 97.7% of the customers of the HERO HONDA bikes were
satisfied with their decision. Only remaining of the customers were not satisfied with
their decision.
CUSTOMER SUGGESTION LEVEL ON HERO HONDA
When the product performance will reach the customers expectations, he
satisfied. when he satisfied with the product he will suggest the same product to others
also. In case of HERO HONDA the customer is satisfied with the particular bike which
he had, even though he dont want to suggest the same bike to others, Because there is a
new bike/new model in the market. Generally people often will see for latest models in
the market.
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The customers who are ready to suggest the same product to others :
YES
60
NO02
YES
NO
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Y ES NO
From this it can be seen that 97.7%. Of the customers are ready to suggest the
bike/product to the others. Rest of the customers is also satisfied with their
bikes/products. But they are not ready to suggest, because of many new models are
entered in the market.
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CONCLUSIONS & FINDINGS
Even though the effect of advertising and sales promotion is spreading, word of
mouth referrals still play a vital role in spreading product / service awareness.
Although advertisements and other sales promotional strategies play an
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s
SUGGESTIONS & RECOMMENDATIONS
Bridging the gap between performance expectations of the customers and
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performance delivered to them will ensure customer delight. It is advised that the
customers are educated about the services and employees updated on the
expectations of the customers. Even the employees in the retail outlets have to be
well trained to help the customers.
Television and Paper advertisements have to be released to cover a wide base of
all the segments and created awareness among the potential customers.
The advertising strategies and marketing strategies should be formulated keeping
in view the profile and perception of the Bike users in order to optimize the
return on investment on the marketing activities.
Periodic surveys to gauge consumer perception have to be undertaken to gain the
first hand perceptual image about the service and also to target the users better.
Loyalty programs could also be introduced to reward to retain the customers.
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CUSTOMER BUYINGBEHAVIOR_ QUESTIONNAIRE
1.Personal Information of the Customer:
a)Name :
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b)Age :
c)Sex :
d)Occupation :
e)Monthly Income :
f)Bike Model :
g)Contact No :
2.which media you select to gather the information?
a)Television Ads [ ] b)Paper Ads [ ] c)Friends [ ] d)Others [ ]
3.which of the following is more influenced on your decision?
a)Television Ads [ ] b)Paper Ads [ ] c)Friends [ ] d)Others [ ]
4.what are the characteristics you consider while selecting the bike? Rate
them?
RATING 1 2 3 4 5 6Style Look
Mileage
Brand Image
Technology
Price
After Sales Services
5. What is your previous purchase? If you purchase any bike in the past?
a)HERO HONDA [ ] b) YAMAHA [ ] c) TVS [ ] d) BAJAJ[ ] e)
OTHERS [ ] f) NO PURCHASE [ ]
6.What was the primary reason that has made you to choose this bike only?
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a)Style Look [ ] b)Mileage [ ] c) Price [ ] d) Brand Image[ ]
e) After Sales Service [ ] f) Technology [ ]
7. Is mileage a big issue for you ?
a) YES [ ] b)NO [ ]
8. Is this bike has a fit in look ?
a) YES [ ] b)NO [ ]
9. What is the special feature in this bike, which cant be found in any
other ?
a) Style Look [ ] b) Mileage [ ] c) Technology [ ]
d) Cant Say [ ] e) Others [ ]
10. From whom do you wish to take suggestions ?
a) Family [ ] b) Friends [ ] c) Local Mechanic [ ]
d) Showroom Personnel [ ]
11. Will you take your decision on your own?
a) YES [ ] b)NO [ ]
12. Is your selected product (bike) performance met your expectations?
a) YES [ ] b)NO [ ]
13. Do you satisfied with your decision?
a) YES [ ] b)NO [ ]
14. Finally, would you like to suggest the same product to others?
a) YES [ ] b)NO [ ]
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Date :
Place : Respondents Signature
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REFERENCES:-
PRINCIPLES OF MARKETING - Philip Kotler.
MARKETING RESEARCH - G.C.Beri.
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CONSUMER BEHAVIOR - Loudon & Della Bitta.
SERVICE MARKETING - M.K.Rampal.
WEBSITES:-
www.google.com
www.prenhall.com\kotler
www.udel.edu/alex/chapt6.html
www.herohonda.com/site
www.auto.indiamart.com/hero-honda/
http://www.google.com/http://www.udel.edu/alex/chapt6.htmlhttp://www.herohonda.com/sitehttp://www.auto.indiamart.com/hero-honda/http://www.google.com/http://www.udel.edu/alex/chapt6.htmlhttp://www.herohonda.com/sitehttp://www.auto.indiamart.com/hero-honda/