A Project Report on:

"A study on Consumer Satisfaction on Hero products and services at SHREE

AUTOMOBILES (HERO MOTOCORP) Pvt. Ltd."

Undertaken at

SHREE AUTOMOBILES Pvt .Ltd.

B. V. Patel Institute of Management,

Uka Tarsadia University

In partial fulfilment of the requirement of the award of

the degree of

Bachelor of Business Administration (BBA)

Under the Guidance of:

“Mr. Parvez Malek”

Assistant Professor

Prepared By:

202103100310154 – SATYAM SINGH BBA (Semester-VI)

 ACKNOWLEDGEMENT

I am greatly thankful to Bhulabhai Vanmalibhai Patel Institute of

Management, for giving me opportunity to work on winter project “A study on
Consumer Satisfaction on Hero products and services at Shree Automobiles
Ltd.”- I wish to express my sincere thanks to Mr. Parvez Malek, professor of
Bhulabhai Vanmalibhai Patel Institute of Management, Uka Tarsadia University.
I wish to express my heartfelt gratitude to my Internal guide and External
guides Mr. Parvez Malek and Mr.Sager Mishra whose constant
support at all stages of this project has enabled me to complete it.

SATYAM SINGH

TYBBA (Marketing)
 DECLARATION

I, hereby declare that the project report on “Hero Motors” is written and
submitted by me to UKA TARSADIA UNIVERSITY, towards the partial
fulfillment for the study of B.B.A. (MARKETING) in year 2023-2024 is
original work done by me, which is based on the Primary and Secondary data
and it is based on the knowledge and material gained from the company.

The contents provided are true to the best of my knowledge and belief.

I further declare that, this project report has not been submitted to any other
College or University for any other degree or course earlier.

Place: TARSADI, BARDOLI

Date:

SATYAM SINGH
TYBBA (Marketing)
 INDEX

CHAPTER PAGE
CHAPTERS
No. NO.

1. EXECUTIVE SUMMARY

INTRODUCTION OF PROJECT

CUSTOMER SATISFACTION 7 – 11

OBJECTIVES OF THE STUDY

SIGNIFICANCE OF THE STUDY

2. LITERATURE REVIEW

STATEMENT OF THE PROBLEM

12 – 14
OBJECTIVES

SCOPE OF THE STUDY

3. INDUSTRY PROFILE

GROWTH OF MOTORCYCLES 15 – 18

HISTORICAL DEVELOPMENT

4. COMPANY PROFILE 19 – 35

VISION & MISSION

STRATERGY, MANUFACTURING & TECHNOLOGY

CORPORATE GOVERNANCE HEADQUATERS & BRANCHES

GRADING POSITIVES & SENSITIVITIES

COMPANY HISTORY- HERO MOTORCORP

OPERATION RAMP-UP
 PORTFOLIO OF PRODUCTS

INVESTMENT IN R&D

5. DATA ANALYSIS & INTERPRETATION 36 – 55

6 FINDINGS 56 – 57

7 SUGGESTIONS / RECOMMENDATIONS 58 - 59

8 CONCLUSION
60-63
REFERENCES ( BIBLIOGRAPHY & WEBLIOGRAPHY )

QUESTIONNAIRE 60
 CHAPTER-1

INTRODUCTION
INTRODUCTION OF THE PROJECT

The project is all about measuring the customer satisfaction in Hero motors. For the past few
years every company is trying to satisfy its customers. The emphasis is on ways of retaining
customers, then on attracting new customers. It is easy to attract new customers then to retain
old customers. So, companies are trying to focus on this aspect of customer’s satisfaction.
The sale of a product does not end with the sale transaction but it is the point at which the
original marketing concept starts. The marketer has to see that whether the customer satisfied
with that particular product/service or not. The post purchase behavior is important for a
marketer. If there is any cognitive dissonance in the minds of the customers then that is
enough to lose a customer. Keeping this in mind the companies are giving more importance
to customer satisfaction.
This project work has been done to find out whether a customer is satisfied or dissatisfied,
also to measure the level of the customer satisfaction and provide this feedback to the
company. The first phase of the project involves the collection of information from the
customers for interpreting the characteristics based on which the customer feels satisfied or
dissatisfied. This information is collected by preparing a structured questionnaire. The
questionnaire consists of both open-ended and closed-ended questions. The questionnaire is
designed in such a way that a customer feels convenient to answer.
The collated information through the questionnaire is analyzed and presented in a statistical
form. The findings are listed and suggestions to solve problems faced have been given in the
suggestion part.

CUSTOMER SATISFACTION
 Whether the buyer is satisfied after purchase depends on the offers performance in relation
to the buyer expectation. In general satisfaction are a person’s feelings of pleasure or
disappointment resulting from comparing a products perceived performance relation to
his/her expectations. If the performance falls short of expectation, the customer is
dissatisfied. If the performance matches the expectation customer is satisfied. If the
performance exceeds the expectation the customer is highly satisfied.
Customer satisfaction cannot be very difficult. After all you either satisfied with the services
you receive or you are not. If you don’t you are not. If it is that easy, then obtaining people's
opinion about how satisfied they are with relatively straight forward matter- or is it?
Customer satisfaction is a marketing tool and a definite value added benefit. It is often
perceived by customers as important as the primary product or service your organization
offers. It looks at what is involved from 3 different angles, the first is from the view of an
organization wishing to understand, and measures, how satisfied its customer are with the
products and services they receive from it. The second is from the perspective of a research
agency that has been asked to obtain feedback from customers and about their experiences
when dealing with companies. Finally it considers the issue from the perspective of
consumers who participate in surveys, including both business customers and members of
general public

OBJECTIVES OF THE STUDY

Marketing starts with identifying the needs of customers and ends in satisfying those
wants. The goal of marketing is to attract new customers by promising superior value and to
keep current customers by delivering satisfaction based on their preferences retaining them.
Without customer, no market exists. As the customers are regarded as the superiors in
today’s market, the level of satisfaction and their preferences should be keenly studied.

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

Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural
areas the bicycles are being replaced by power driven two-wheelers such as scooters,
motorcycles.
 Not only this, this industry has also customers ranging from all demographic
segments. It has been common sights that even school going children are driving two-
wheelers. The women customers are also increasing due to increase in women literacy and
employment.

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

difficult one and not only that it is estimated that the cost of attracting a new customer is five
times the cost of retaining current customer. It requires a great deal of effort to induce
satisfied customer to switch away from their current preference. Thus, customer satisfaction
is been given top priority in today’s competitive world.
Therefore, keeping the above stated objective in mind, this study was conducted to ascertain
the customer’s satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of
this, a detailed study of customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.

SIGNIFICANCE OF THE STUDY

The information required for this study obtained was basically through two sources.

Primary Data:

Primary Data has been gathered by a survey through a structured questionnaire.

The Data has been collected from 100 customers, through questionnaires, by using
simple random sampling. In addition interaction with the staff of Hero MotoCorp Ltd has
also given some information.

Secondary Data:

Secondary Data comprises of information

n obtained from annual reports, brochures, manuals websites etc.
 CHAPTER-2
LITERATURE REVIEW
REVIEW OF LITERATURE

Planning for the future to achieve the long-term objective is integral to the survival and
growth of every business. Strategic planning today has to take into cognizance the rapid
changes in technology, increased competitiveness and the turbulent business environment,
also with the world becoming one big global village.
Strategy covers every aspect of business from business reengineering, new business
development, product development and brand positioning to advertisements promotional
campaigns, media and publicity. It is a game of innovation.
In fact, marketing people are involved in marketing 10 types of entities; goods,
services, experience, events, persons, places, properties, organizations, information and ideas.
Marketing management is the art and science of choosing target markets and getting, keeping
and growing customers through creating, delivering and communicating superior customer
value.
India is second largest manufacturer and producer of two-wheelers in the world. It
stands next to Japan and China in terms of the number of two wheelers produced and
domestic sales respectively.
Indian two-wheelers industry made small beginning in early 50’s when Automobile
products of India (API) started manufacturing scooter in India. Hero was established on 13 th
of April 1984. The Indian two wheelers Industry can be broadly classified as scooter,
motorcycles and mopeds/scooters. In last six years domestic two-wheelers has seen
structural charges. This can be seen from the change in composition of two wheeler sales,
where the motorcycles have gained market share from the scooter and moped or scooters
segments.
The consumer is now faced with proliferation of brand models. Getting new customers as
well as retaining them is an important task of manufacturers. So service after sales is very
important. A satisfied customer brings in more name and goodwill to the company, which is
why customer satisfaction is given more importance in today’s competitive world. A study on
this aspect with Hero two-wheelers at Hero MotoCorp Ltd was made.
Prof. Manisha Jagtap & Dr. Anand Deshmukh (2018) found in his
study that the factors influencing the consumer buying behavior are
Brand Image Showroom Services. Engine Capacity, Safety, New
technology. Product design, Warranty period. Impact of peers,
Driving Comfort, Mileage Price and Engine Power. The research
identified apart from the factors, consumer behavior is also
influenced by the need, purchasing power and the price of the two wheeler. The researcher
also analyzed the reason behind the changes
occurred in consumer buying decision over to another brand which
are is due to problems faced with the existing brand and due to the
desire of highly technological automobile and due to the change in
the services offered by dealer before and after purchase.

A.Martin Jayaraj (2017) explained about the buying behavior of

consumers in purchasing two wheelers involves several psychological
factors that govern the individual thinking process (like motivation,
perception and attitude), decision-making steps involved in buying
interaction of the consumer with several groups like friends, family
and colleagues, group. And selection of the brand and outlet
depending on features and emotional appeal (marketing mix) All
consumers engage in shopping with certain fundamental decision making modes or styles.
Including rational shopping and
consciousness regarding brand and quality.

S. Suraj Basha and Dr. B.C. Lakshmanaa (2017) have written a paper
on “A study on factors influencing consumer’s buying behavior of
two-wheeler with special reference to Rayalaseema region, Andhra
Pradesh, India, the study revealed that consumer buying behavior
influence by personal, psychological, social and cultural factors.
Joseph Antony and Dr. Siby Thomas (2017) conclude in their paper
entitled “A study on factors influencing purchase intention of
consumers towards two wheelers that consumers influenced by
economic factors, features. Usage, brand image, aesthetics and social.
Dr. Raj A. Jesu Kulandai, & Prof. Kaviarasu S. John, (2015) found in his
study that the Indian two wheeler industry is expanding and growing
up each year and the motorcycle segment is governed by various
players ie. Hero, Honda, Bajaj, TVS, Royal Enfield. The study notices
that buying behavior of two-wheelers in Chennai city is significantly
influenced by a number of marketing stimuli offered by the
manufacturers. It also reveals the people. From low and middle class
prefer two wheeler as it matches with their individual and family
requirements.

Dr. Duggani Yuvaraju & Prof. S.Durga Rao (2014) have written a case
study on “Customer satisfaction towards Honda two-wheelers in
Tirupati, India. The study concludes that most of the customers of
high income Group preferred Honda bikes because of best quality
with reasonable price.

Kanojia, A.K. (2011) States that top 4 motorcycle segment control

93% market share. Hero Moto Corp controls executive segment, Bajaj
has premium segment and Honda has the dominant position in
scooter segment. The author studied about various factors
responsible for Hero Moto Corp being able to sustain leadership like
highest network penetration, highest customer satisfaction with one
of the fastest complaint resolution. Abhinav International Monthly
Refereed Journal of Research In Management & Technology VOL. 11.

Krishnan Santana, R. (2007) Looks into various issues faced by the

two wheeler industry. In terms of competition, the industry is likely
to face competition from used cars and low cost cars. Other issues
are the declining margins due to increased cost of materials and shift
in customers’ demand to electric vehicles to save on petrol. In terms
of growth, there are expectations that the industry is likely to grow
by 15%. Most of the growth is likely to come from motorcycles. Some
of the Indian motorcycle companies are also likely to set up plants in
foreign countries to meet export needs.
Lindquist, Jay D. And Joseph, Sirgy, M. (2003) This up-to-date text
focuses on consumer shopping, buying and consumption behavior
topics looking at both domestic and international theory and
examples. It is divided into sections on marketing foundations,
consumer decision making, psychological and sociological influences
on consumer decision making, and special topics relating to public
policy, organizational buying and conducting research.

Sanjay Kumar R, Dr. Mohammed Rafee, Dr. Mohammed Arif Pasha

(2020) Undertook a study on customer satisfaction towards after sale
services of HERO HONDA acclaim motors, Yelahanka Bangalore. The
objective of this report is to carry out a detailed study on
understandings, this report provides the findings based on the
discussions with the key personnel of HERO HONDA the study was
conducted for a period of 8 weeks. The project was undertaking
about help to identify how customer attitude on service helped to
improve the transfer of learning. The methodology used for
conducting the study was basically on the descriptive research taking
a sample size of 100 customers. The primary data was collected
through well-structured questionnaire. Secondary data were
collected from book, journal, and websites.

Dr.K. Lakshmi Priya (2016) A study on customer satisfaction towards

Honda two wheeler the study focuses on customer satisfaction
toward the Honda two wheeler. It includes availability level of
products, quality of the products, customer’s expectations towards
the products and problems faced by customers if any at Honda. After
the completion of data, the collected data is tabulated and analysed
and the relationship between different variables have been
estimated with the help of Simple percentage method, weighted
average and Likert’s scale technique. Hence, customer relationship
management is having a wide scope in modern world.
Dr. N. Nagaraja (2012) conducted a study on “Customer satisfaction
in automobiles industry an Indian online buyer’s perspective of car
manufactures website”. The main objective of the study is the
analysis of the customer attitudes towards internet based car
manufacture’s website. The methodology used was regression
method. The conclusion is automotive companies will need to stay
focused on evolving consumer attitudes online.

Preet Kamlesh Patel, Taral Patel analysed “A Study on Customers

Satisfaction Towards Products of Hero MotoCorp.” Study was
conducted refers to Bardoli. The study used both primary and
secondary data. Primary data were collected by constructing a
detailed questionnaire. For the purpose of the study, 100
questionnaires were collected from the respondents who purchased
Products of Hero MotoCorp.

VS. Kumar(2018) conducted a study on “The relationship between

Customers Satisfaction and Customer Loyalty in Commercial Vehicle
industry in India”. The main objective of the study is that the paper
will focus on the importance of CRM, customer loyalty and customer
satisfaction. The data are collected in primary data. The conclusion is
the questionnaire can be modified and update on the real time basis
and the use of network in customer data mining.

V. Venkata Ramana and G.Somayajulu. Publisher Excel Books. 2003

Edition. ‘Customer Relationship Management’. The book attempts to
provide the nature, concept and implementation of CRM practices
and methodology as applicable to different organizations. The book is
divided into three parts: Part I of the book provides a conceptual
framework, application of CRM in manufacturing and service sector.
Part II deals with the e-CRM concepts and implementation issues
involved in its’ relevance to different sectors. Part III consists of case
studies of organizations which have implemented CRM.
Dr. C.B.Mamoria, R.L.Joshi and Dr. M.I.Mulla. 2005. Publisher Kitab
Mahal. ‘Principles and Practice of Marketing in India’, ISBN 81-225-
0079-X. The book is very useful to understand the concept of
Marketing System and Marketing Mix. The book provides extensive
information about the marketing of consumer products, Industrial
goods and agricultural goods. It also throws light on the theme
Market Segmentation, Consumer Behaviour and Product Planning
and Development. It also explains the concept of Service Marketing,
Pricing Policies and Stratigies.

Raja Gopal. Publisher – Vikas Publishing House Pvt. Ltd. 2005 Edition.
‘Marketing Management Text and Cases’ ISBN 81-259-0773-4. The 70
reference book is very useful for the researcher as it provides useful
information on Attributes and Thrust Areas in Marketing, Marketing
Environment and Process, Contemporary Lessons in Customisation,
Selling Concept and Marketing Concept. The book also includes cases
related to marketing policies.

Wells and Prensky (1996: 320) comment that a person will

experience feelings of discomfort, known as cognitive dissonance,
when he or she has knowledge, holds attitudes, or takes. Actions that
conflict with one another. When dissonance occurs the individual will
seek to reduce it by changing the inconsistent cognitive elements.

Dylan (2003: 1) shows that cognitive dissonance is a theory of human

motivation that asserts that it is psychologically uncomfortable to
hold contradictory cognitions. The theory is that dissonance, being
unpleasant, motivates a person to change his cognition, attitude, or
behaviour.
Dissonance and consonance are relations among cognitions, that is,
among options, beliefs, knowledge of the environment, and
knowledge of one’s own actions and feelings. Two opinions, or
beliefs, or items of knowledge are dissonant with each other if they
do not fit together, that is, if they are inconsistent, or if, considering
only the particular two items, one does not follow from the other.

Czinkota et al. (2000: 163) believe that the consumer’s decision

process does not end with the purchase. Rather, the experience of
buying and using the product provides information that the
consumer will use in future decision making. In some cases, the
consumer will be pleased with the experience and will buy the same
product from the same supplier again. In other cases, the consumer
will be disappointed and may even return or exchange the product.
In general, the post purchase process includes four steps: decision
confirmation, experience evaluation, satisfaction or dissatisfaction,
and future response (exit, voice, or loyalty).
After a consumer makes an important choice decision, he or she
experiences an intense need to confirm the wisdom of that decision.
The flip side is that he or she wants to avoid the disconfirmation. One
of the processes that occur at this stage is cognitive dissonance: a
post purchase doubt the buyer experiences about the wisdom of the
choice. Methods of reducing dissonance and confirming the
soundness of one's decision are seeking further positive information
about the chosen alternative and avoiding negative information
about the chosen alternative.

(Phipps and Simmons, 2000; 152),

Weitz et al. (2001: 363) indicate that following purchase, the product
is actually consumed. Marketers need to know whether purchasers
consume the product routinely without much thought, or if they are
consciously evaluating it. This depends on the level of enduring
involvement in the product and the finality of the preference that
caused this purchase.

Kurtz and Clow (1998: 418) add that also,

consumers buy some products on a trial basis, without making their
preference final yet. These products, even if not of enduring
involvement, are the ones that the consumer is likely to be using with
an eye to appraisal. Often, when consumers receive free samples,
they are not necessarily in an evaluative mode, therefore, they use
them routinely, without consciously trying to register the product
performance.

Burnett (2002: 81) argues that all the behaviour determinants and
the steps of the buying process up to this point are operative before
or during the time a purchase is made. However, a consumer's feeling
and evaluations after the sale are also significant to a marketer,
because they can influence repeat sales and also influence what the
customer tells others about the product or brand. Keeping the
customer happy is what marketing is all about. Nevertheless.
consumers typically experience some post purchase anxiety after all
but the most routine and inexpensive purchases. This anxiety reflects
a phenomenon called cognitive dissonance According to this theory,
people strive for consistency among their cognitions (knowledge,
attitudes, beliefs, values). When there are inconsistencies,
dissonance exists, which people will try to eliminate.

According to Etzel et al. (2001: 101), in some cases, the consumer

makes the decision to buy a particular brand already aware of
dissonant elements. In other instances, disturbing information that is
received after the purchase arouses dissonance. The marketer may
take specific steps to reduce post purchase dissonance. Advertising
that stresses the many positive attributes or confirms the popularity
of the product can be helpful. Providing personalized reinforcement
has proven effective with big-ticket items such as automobiles and
major appliances. Salespeople in these areas may send cards or may
even make personal calls in order to reassure customers about their
purchase.

Peter and Donnelly (2004: 52) point out that in general, if the
individual finds that a certain response achieves a desired goal or
satisfies a need, the success of this cue-response pattern will be
remembered. The probability of responding in a like manner to the
same or similar situation in the future is increased. In other words,
the response has a higher probability of being repeated when the
need and cue appear together again, and thus it can be said that
learning has taken place. Frequent reinforcement increases the habit
potential of the particular response. Likewise, if a response does not
satisfy the need adequately, the probability that the same response
will be repeated is reduced.
For some marketers this means that if an individual finds a particular
product fulfils the need. for which it was purchased, the probability is
high that the individual will repurchase the product the next time the
need arises. The firm's promotional efforts often act as a cue. If an
individual repeatedly purchases a product with favourable results,
loyalty can result in habitual purchases, and such habits are often
extremely difficult for competing firms to alter. Although many
studies in the area of buyer behaviour centre on the buyer's
attitudes, motives, and behaviour before and during the purchase
decision, emphasis has also been given to study of behaviour after
the purchase. Specifically, studies have been undertaken to
investigate post purchase dissonance, as well as post purchase
satisfaction.

Hawkins et al. (2001: 312) state that the occurrence of post decision
dissonance is related to the concept of cognitive dissonance. This
theory states that there is often a lack of consistency or harmony
among an individual's various cognitions, or attitudes and beliefs,
after a decision has been made that is, the individual has doubts and
second thoughts about the choice made. Further, it is more likely that
the intensity of the anxiety will be greater when any of the following
conditions exist.

STATEMENT OF THE PROBLEM

This Project has been titled “A comprehensive study Post purchase buyer behavior and
satisfaction towards Hero Motors Bikes after the split with Honda."
To study the new market of Hero motors after the split with Honda, the consumer response to
the bike and needed improvement aria
The study would help to understand the consumer satisfaction to their expectation.

OBJECTIVES

This study was conducted keeping the following objectives in mind.

• To study the factors which influence the purchase of Hero two-wheelers?
• To know the customer level of awareness of Hero two-wheelers.
• To know the various factors, which influence customers in purchasing, they’re two -
wheelers?
• To find the after sales service offered by Hero MotoCorp Ltd.
• To know the customer level of satisfaction of Hero two-wheelers with respect to Hero
MotoCorp Ltd.
• To find the profile of Hero MotoCorp Ltd two-wheeler customers.
• To understand two wheeler sector in India.
• How the split with Honda has affected Hero motors.

SCOPE OF THE STUDY

• This study helps the organizations to increase their service and product quality and
in turn increase the market share, top and bottom line of the company.
 CHAPTER-3

INDUSTRY PROFILE
INDUSTRY PROFILE

The Indian two-wheeler contributes the largest volume amongst all the segments in
automobile industry. Though the segment can be broadly categorized into 3 sub-segments
viz. scooters, motorcycles and mopeds; some categories introduced in the market are a
combination of two or more segments e.g. scooters and step-thru. The market primarily
comprises five players in the two-wheelers segment with the most of the companies having
foreign collaboration with well-known Japanese firms earlier. But most of the companies are
now planning 100% subsidiaries in India. and growth anticipated is higher than the 16
percent achieved in the past 10 years
The automobiles sector is divided into four segments-two wheelers(mopeds, scooters,
motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles,
multi-purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three
wheelers (passenger carriers and good carriers).
The industry is one of the key drivers of economic growth of the nation. Since the
globalization of the sector in 1991 and the subsequent opening up of 100 percent FDI through
automatic route, Indian automobile sector has come a long way. Today, almost every global
auto major has set up facilities in the country.
The world standings for the Indian automobile sector, as per the Confederation of Indian
Industry, are as follows:

• Largest three-wheeler market

• Second largest tow-wheeler market
• Tenth largest passenger car market
• Fourth largest tractor market
• Fifth largest commercial vehicle market
• Fifth largest bus and truck segment

The sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with
a 10 percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of
registration, excise duty, road tax) and slow rural income growth. Solid but cautious growth is
expected over the next few years. However, from a long-term perspective, rising incomes,
improved affordability and untapped markets present promising opportunities for automobile
manufactures in India. According to Macquarie equities research, sale of passenger vehicles
is expected to double in the next four years

GROWTH OF MOTORCYCLES

It is therefore not surprising that every major player is trying to get into the
Motorcycle market to have a piece of the cake.
Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by Bajaj
with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13 percent. Now LML and
Kinetic have announced their plans to manufacture motorcycles, which are likely to come in
the market by next year. The battle is expected to be fierce but the consumer will be the
greater beneficiary.
The growth in motorcycles is slowly losing its hold. It is considered a family vehicle
but perhaps there is competition from the second hand car markets where prices have fallen
down rapidly. A1992 Maruti 800 is now available for just 70,000.
The scooter manufactures have to watch this phenomenon and bring our many new
product variants in the right price slots to sustain their shares in the market. The moped
market has been steady with an average growth of 3 percent. It is dominated by TVS which
holds 48 percent market share followed by Kinetic and Majestic Auto at 23 percent and 18
percent respectively.
In each segment, there is a wide gap between the first two contenders, which makes
their products positioning and marketing strategies most interesting. The two wheelers market
seems to be maturing. There are the usual their conventional segment of scooters, mopeds
and motorcycles. Two new segments are being created.

HISTORICAL DEVELOPMENT OF TWO WHEELER INDUSTRY

India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next to Japan and China in terms of the number of two-wheelers produced and
domestic sales respectively. This distinction was achieved due to variety of reasons as if
respective policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public transportation system etc.,
In Indian two-wheeler, industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country. Until
1958, API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers.
Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio
of Italy. The agreement expired in 1971.
In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter
segment. Although various Government and Private enterprises entered the fray for scooters,
the only new player that has lasted until today is LML.
Under the regulated regime, foreign companies were not allowed to operate in India.
It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto
being as high as 12 years.
The motorcycles segment was no different, with only three manufacturers via Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot
were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the
motorcycle segment.
The two-wheeler market was opened to foreign competition in the mid 80’s. And then the
market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc
bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low
power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke
bikes (100cc category), gaining a top slot.
 CHAPTER-4

COMPANY PROFILE

COMPANY PROFILE
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer
of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.

HeroMotoCorp is now world’s largest manufacturer of two-wheelers. The company has

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

4.1. VISION

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

4.1.1 MISSION

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates. The company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners.
STRATEGY
Hero MotoCorp's key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building activities and
ensure customer and shareholder delight.

MANUFACTURING

Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located
in the state of Haryana in northern India. The third and the latest manufacturing plant are
based at Haridwar, in the hill state of Uttrakhand.

TECHNOLOGY

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

4.2. Corporate Governance

At Hero MotoCorp, it is the firm’s belief that the essence of Corporate Governance lies in the
phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the shareholders.
The Chairman and Directors are ''Your'' fiduciaries and trustees. Their objective is to take the
business forward in such a way that it maximizes ''Your'' long-term value.
This Company is committed to benchmarking itself with global standards for providing good
Corporate Governance. It has put in place an effective Corporate Governance System which
ensures that the provisions of Clause 49 of the Listing Agreement are duly complied with.
The Board has also evolved and adopted a Code of Conduct based on the principles of Good
Corporate Governance and best management practices being followed globally.
• Headquarter and Branches

Corporate & Registered Office

Hero MotoCorp Ltd.
34, Community Centre, BasantLok, Vasant Vihar, New Delhi - 110057, India.
Tel: +91-11-26142451, 26144121
Fax: +91-11-26143321, 26143198

Zonal Offices

East Zone
Hero MotoCorp Ltd
3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India.
Tel: +91-33-22810926 22810927, 22808922, 22811185
Fax: +91-33-22808923
Email: [email protected]

West Zone
Hero MotoCorp Ltd.
15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road,
Wakadewali, Pune - 411 003, India.
Tel: +91-20-25511577, 25512161, 56012990-91
Fax: +91-20-25511266
Email: [email protected]

North Zone
Hero MotoCorp Ltd.
F-126, Katwaria Sarai, Opp. Qutab Institutional Area,
New Delhi -110016, India.
Tel: +91-11-26533981-2, 47619300
Fax: +91-11-26533983
Email: [email protected]
South Zone
Hero MotoCorp Ltd.
No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage,
Indira Nagar, Bangalore – 560038, India.
Tel: +91-80-25550430, 25584436, 25582436, 25321139
Fax: +91-80-25594036
Email: [email protected]

GRADING POSITIVES
Market leadership, strong brand equity, professional management, high operating efficiency
and established scale economies. Strong financial profile characterized by healthy margins,
high profitability and cash generation. Potential upsides to our estimates: (1) HMCL sustains
its current market share, leveraging its brand equity, product performance and distribution
strengths; (2) industry growth exceeds our estimates over the medium term despite existing
concerns on macro-economic scenario; (3) HMCL betters the margins estimated by us via
sustained business growth and increases in operating efficiency even in the face of
competitive and cost pressures.

GRADING SENSITIVITIES
Key sensitivities to our estimates include:
(1) Inflation in input costs not being neutralized by price increases because of competitive
pressures;
(2) High concentration on Executive segment;
(3) Intensifying competition from global players;
(4) Ability to develop in-house technical capability or form alternate technical tie-ups with
external institutions.

Company History - Hero MotoCorp

1983
• Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
• Shareholders Agreement signed
1984
 • Hero Honda Motors Ltd. Incorporated
1985
• First motorcycle "CD 100" rolled out

1987
• 100,000th motorcycle produced1989New motorcycle model - "Sleek"
introduced
1991
• New motorcycle model - "CD 100 SS" introduced
• 500,000th motorcycle produced
1992
• Raman MunjalVidyaMandir inaugurated - A School in the memory of founder
Managing Director, Mr. Raman Kant Munjal
1994
• New motorcycle model - "Splendor" introduced
• 1,000,000th motorcycle produced
1997
• New motorcycle model - "Street" introduced
• Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998
• 2,000,000th motorcycle produced
1999
• New motorcycle model - "CBZ" introduced
• Environment Management System of Dharuhera Plant certified with ISO-
14001 by DNV Holland
• Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of
founder Managing Director, Mr. Raman Kant Munjal
2000
• 4,000,000th motorcycle produced
• Environment Management System of Gurgaon Plant certified ISO-14001 by
DNV Holland
• Splendor declared 'World No. 1' - largest selling single two-wheeler model
• "Hero Honda Passport Programme" - CRM Programme launched
2001
 • New motorcycle model - "Passion" introduced
• One million production in one single year
• New motorcycle model - "Joy" introduced
• 5,000,000th motorcycle produced
2002
• New motorcycle model - "Dawn" introduced
• New motorcycle model - "Ambition" introduced
• Appointed VirenderSehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh
and Zaheer Khan as Brand Ambassadors
2003
• Becomes the first Indian Company to cross the cumulative 7 million sales
mark
• Splendor has emerged as the World's largest selling model for the third
calendar year in a row (2000, 2001, 2002)
• New motorcycle model - "CD Dawn" introduced
• New motorcycle model - "Splendor +" introduced
• New motorcycle model - "Passion Plus" introduced
• New motorcycle model - "Karizma" introduced
2004
• New motorcycle model - "Ambition 135" introduced
• Hero Honda became the World No. 1 Company for the third consecutive year.
• Crossed sales of over 2 million units in a single year, a global record.
• Splendor - World's largest selling motorcycle crossed the 5 million mark
• New motorcycle model - "CBZ*" introduced
• Joint Technical Agreement renewed
• Total sales crossed a record of 10 million motorcycles
2005
• Hero Honda is the World No. 1 for the 4th year in a row
• New motorcycle model - "Super Splendor" introduced
• New motorcycle model - "CD Deluxe" introduced
• New motorcycle model - "Glamour" introduced
• New motorcycle model - "Achiever" introduced
• First Scooter model from Hero Honda - "Pleasure" introduced
2006
 • Hero Honda is the World No. 1 for the 5th year in a row
• 15 million production milestone achieved
2007
• Hero Honda is the World No. 1 for the 6th year in a row
• New 'Splendor NXG' launched
• New 'CD Deluxe' launched
• New 'Passion Plus' launched
• New motorcycle model 'Hunk' launched
• 20 million production milestone achieved
2008
• Hero Honda Haridwar Plant inauguration
• New 'Pleasure' launched
• Splendor NXG lauched with power start feature
• New motorcycle model 'Passion Pro' launched
• New 'CBZ Xtreme' launched
• 25 million production milestone achieved
• CD Deluxe lauched with power start feature
• New 'Glamour' launched
• New 'Glamour Fi' launched
2009
• Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched
• Splendor completed 11 million production landmark
• New motorcycle model 'Karizma - ZMR' launched
• Silver jubilee celebrations
2010
• New model Splendor Pro launched
• Launch of new Super Splendor and New Hunk
2011
• New licensing arrangement signed between Hero and Honda (Hero
Honda is renamed as Hero)
• Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme,
Karizma
• Crosses the landmark figure of 5 million cumulative sales in a single year
2012
• 45% market share in the domestic two-wheeler market
• 56% market share in the domestic motorcycle market
• Declared a dividend of 2,250% in 2011-12, i.e. 45 per equity share of the face
value of 2 per share
2013
- Hero Motocorp Commences Construction of Its New Plant & Global Parts
Centre
- Hero Motocorp Launches another Market First Offers Warranty of 5 Years on All
Its Two-Wheelers
-Hero Motocorp Commences Construction of Its "GAME-CHANGING" Centre of
Global Innovation and Research & Design
-Hero Motocorp Sets Yet Another Milestone In Its Journey Of Technological
Leadership hero Motocorp Zooms Ahead With Record Retail Sales Of Over 1.2
Million Units In Oct-Nov
2014
-Hero Motocorp Heralds A New Era Of Technology Leadership -Hero Motocorp
Sets New Benchmark For The Global Two Wheeler Industry
-Hero Motocorp Launches Splendor Ismart With Game Changing I3s Technology
-Hero Motocorp Sets New Industry Benchmark With Record Sales For A Non -
Festive Month -Hero Motocorp Rides Into A Greener Tomorrow With "GARDEN
Factory" 2015
-Hero MotoCorp Augments Leadership with Highest-ever Calendar Year Sales in
2014 -Hero MotoCorp has launched a new entry level commuter, the HF Dawn
-Hero MotoCorp has been allocated a 592-acre site to facilitate development of its
Rs.1600-crore Greenfield manufacturing unit in Andhra Pradesh -Hero MotoCorp
launches new Passion Pro bike -HMCL Americas INC enters into "Settlement
Agreement" to Acquire EBR's Consulting Business
-Hero MotoCorp has commenced operation in their first ever plant outside India
established in Villa Rica, Colombia
• 2016
• -Hero MotoCorp Commences the New Year with Robust Sales -Hero MotoCorp
unveils Four new 2-wheelers -Hero MotoCorp unveils technology & innovation-
driven new product strategy -Hero MotoCorp inaugurates CIT in Jaipur -Hero
MotoCorp Marks Five Years of Solo Journey with Leadership Performance -Hero
 Motocorp begins a new era with the Splendor iSmart 110 - the first motorcycle
completely designed & developed in-house -Hero Motocorp recives TIME India
Awards - Manufacturing Innovator of the Year Award

Sales figures

•Profile of target customer

Hero MotoCorp basically targets the every each and segments of the market. So there are
some products like splendor, CD- dawn (rs40000-50000) they made for lower segment of the
market and glamour, passion, CBZ, karizma (rs above 50000) for the upper segment of the
market. And now they are trying to target the young people of the market.
India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, has
announced its intention to expand globally, with plans to sell vehicles on three continents and
nearly double its unit sales within five years. The company, whose family shareholders
bought out its former partner Honda Motor this year, said it would invest about $1bn to
expand internationally in south-east Asia, Africa, and Central and Latin America.

•Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in their
product. And after selling they have the services and maintenances. Their constant endeavor
is to support the company's mandate of providing highest level of customer satisfaction by
taking good care of customer’s two-wheeler service and maintenance through their vast
network of more than 2100 committed dealers and service outlets spread across the country.
Apart from that hero motocorp focused on cleanliness and other aesthetics of the service
stations and add such air conditioned waiting area, internet surfing, coffee shops etc to
enhance the in house experience of the customers at those “customer touch point”. To ensure
that millions of customers in the rural area are not left waiting for adequate service as it is
impossible for the company to introduce service station at every nook and corner of the
country, mobile service stations are regularly arranged with prior intimation to public about
the rout that the mobile workshop would take when passing through that region so that
customers can come and get their two wheelers serviced. All these activities are aimed to
increase the customer loyalty and thus retaining customers.

Good life: Customer Loyalty Program

Good Life is a Customer Relationship Program introduced a decade ago, which Endeavour’s
to enhance customer satisfaction and initiate increased levels of member engagement.
The main objective of this Program is to make our customers our Brand Ambassadors to
generate referral sales and boost service visits.
The GoodLife Program has enabled the Company build a consolidated base of 10 million
plus loyal customers; in the process, a new distribution platform has emerged. GoodLife now
contributes a huge 14% to the Company’s overall sales (purely through referrals), in addition
to incremental sales. GoodLife has emerged as the largest Customer Relationship Program in
India, witnessing additions of 0.38 million members each month. During the year, the
Program’s member base shot up 16%, with new 4.51 million transactions being undertaken.
Besides aiming to increase the number of customers and volume of transactions, the Program
seeks to enhance revenue opportunities for dealers as well. Different levels of engagement
have been in-built into the Program with the aim of increasing its people engagement
initiatives. Some of these are: transaction-based rewards, exclusive eventinvites, personal
accidental insurance, servicecontinuity bonus, transaction benefits on specialoccasions
(birthdays, anniversaries), quarterlynewsletters and interaction through a program website.
The Program began with a member transaction booklet, a replica of the Passport Booklet,
which helps in engaging with customers. However, the Program has been e-enabled now to
improve its geographical reach and efficiency level. It runs on the backbone of a robust and
engaging front-end and a sound, solid and technical back-end. The Program includes
 customized technology, combining a mix of Magnetic Swipe/Bar Code. Personalized
Membership Cards are shared with GoodLife members, which are easy to carry, transact and
earn/redeem rewards. Online member profiling and real-time customer feedback module (via
questionnaires) are some more salient features of the Program. During the year, GoodLife has
been the recipient of several accolades and awards on national and international platforms.
Some of these were:
• ‘Order of Merit’ in PMAA awards 2011 under ‘Best Activity Generating Short or
Long Term Brand Loyalty’ category
• Colloquy Award under Innovation in Loyalty Marketing (International) category
• Qualified as ECHO Finalist (5th place) in 2011 DMA International ECHO™ Awards
competition Loyalty Award under Auto Sector

OPERATION RAMP-UP
With demand for bikes recording a stupendous growth of 15% during the year under review,
the Company’s capacities were severely strained. This prompted it to augment its capacity at
its three plants – up from 5.4 million units to 6.35 million – during the year. This was made
possible through a number of de-bottlenecking measures. For example, the Company’s plants
were made leaner by outsourcing non-critical processes and operations.
Besides this, a number of structural changes and alterations were made in its manufacturing
strategy to effectively implement its Sales Plan for 2016-17.
Major replacements were also executed in the paint and assembly shop, ensuring little or no
shutdown along the assembly line. Apart from the above measures, several innovative
technologies were inculcated to reduce operational costs. Some examples of these are:

• A breakthrough technology for gear rolling was implemented for mass-production

• Fine blanking, an alternate process of hobbling, was introduced for sprocket components
• Advanced cam grinding was introduced to increase productivity and control costs
The Company’s oldest plant at Dharuhera was in the limelight for two specific reasons:
• Wage negotiations were concluded
• Plant won TPM Excellence Award
The Company continues to set new industry benchmarks in the areas of energy conservation
and sustainability. Vapour absorption machines and heat recovery units were installed during
the year to utilize waste heat from Gas DGs for air-conditioning and pre-heating of hot water
 generation. Other green initiatives included projects on waste water management, LED
lighting and solar power. These cost leadership and green projects yielded considerable
savings to the Company within a short period of time.

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

100cc
Bike category
• SPLENDOR PLUS
• SPLENDOR NXG
• SPLENDOR PRO
• PASSION PRO
• PASSION XPRO
• MAESTRO
• PLEASURE
• HF DAWN
• HF DELUXE
125cc
Bike category
• GLAMOUR
• SUPER SPLENDOR
• IGNITOR
• Glamour PGM FI

150cc
Bike category
• ACHIEVER
• KARIZMA
• KARIZMA ZMR
• IMPULSE
• HUNK
• XTREME

• Termination of Honda joint venture

In December 2016, the board of directors of the Hero Honda Group has
decided to terminate the joint venture between Hero Group of India and Honda of Japan in a
phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero
Honda. Under the joint venture Hero Group could not export to international markets (except
Sri Lanka) and the termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda for the technology in their
bikes. So there are concerns that the Hero Group might not be able to sustain the performance
of the Joint Venture alone.
The Japanese auto major will exit the joint venture through a
series of off market transactions by giving the Munjal family—that held a 26% stake in the
company—an additional 26%. Honda, which also has an independent fully owned two
wheeler subsidiary—Honda Motorcycle and Scooter India (HMSI)—will exit Hero Honda at
a discount and get over $1 billion for its stake. The discount will be between 30% and 50% to
the current value of Honda's stake as per the price of the stock after the market closed on
Wednesday.
The rising differences between the two partners gradually emerged as
an irritant. Differences had been brewing for a few years before the split over a variety of
issues, ranging from Honda's reluctance to fully and freely share technology with Hero
(despite a 10-year technology tie-up that expires in 2014) as well as Indian partner's
uneasiness over high royalty payouts to the Japanese company. Another major irritant for
Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the
company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle
and Scooter India (HMSI).

As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family,
led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose
vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This
SPV would eventually be thrown open for private equity participation and those in the fray
include Warburg Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle
Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing
as well as future models.

MAIN REASONS FOR PARTING

ISSUE of exports

According to the shareholder’s agreement signed in 1984, the joint venture was only for
domestic production and consumption. The agreement was subsequent, modified to allow
exports of limited products to a few countries, namely Sri Lanka, Bangladesh, Nepal, and
Columbia. However, in 2008, when the issue of exporting the Indian JV’s products to other
countries came up, Honda was of the opinion that Hero Honda will have to compete on its
own since it could not influence its subsidiaries abroad to import the JV’s products. Honda’s
subsidiaries are run very independently and decide which countries they want to source their
products from. This was a bitter pill to swallow for Hero Honda.

INVESTMENT IN R&D

Hero Honda wanted to scale up its business & wanted to enter the next Growth phase by
focussing on manufacturing its own products & Investing in its own R&D to which Honda
was not comfortable.

Direct Competitor

Honda’s Indian subsidiary Honda Motorcycles and Scooters India Pvt Ltd (HMSIPL) decided
in 2010 to launch motorcycles, the segment that formed over 70 per cent of Hero Honda’s
sales. Hero Honda’s apprehension was that HMSIPL motorcycle will become a direct
competitor to its largest selling bikes – Passion and Splendor. Also, this was against the terms
of the agreement.
 CHAPTER-5

DATA ANALYSIS

AND

INTERPRETATION
 Table- Showing type of Hero two wheeler models owned

Name of Hero two No. of

Num
wheeler respondents
1 SPLENDOR PLUS 25
2 SPLENDOR PRO 10
3 PASSION PRO 30
4 HUNK 2
5 GLAMOUR 3
6 KARIZMA ZMR 2
7 KARIZMA 1
8 MAESTRO 3
9 SUPER SPLENDOR 2
10 SPLENDOR NXG 5
11 PLEASURE 6
12 HF DAWN 1
13 PASSION XPRO 9
14 IMPULSE 1
Total 100
Inference:-From the above table it is inferred that, 30% of respondents held Passion Pro and
25% of respondents held Splendor Plus, Splendor Pro 10%, and Passion Xpro 9%. The
remaining two wheelers are very less in %. The table is inferred that some of the models are
very less in market. This formed the basis of the study.

Chart 4.1Showing type of Hero two wheeler models owned in %

Model Name Owned in %

Passion Pro 30%
Splendor Plus 25%
Splendor Pro 10%
Passion X Pro 9%
Pleasure 6%
Splendor NXG 5%
Maestro 3%
Glamour 3%
Super Splendor 2%
Hunk 2%
Karizma ZMR 2%
HF Dawn 1%
Impulse 1%
 Sources No. of respondents
News paper ads 9
Television ads 57
Roadside Boarding’s 14
Others 20
Total 100

Table- 4.2 showing the source of information about Hero

Inference:
From the above table it is inferred that people are getting information about hero two
wheelers from television ads, more than 50% of people are watching TV ads. Roadside
Boarding &news paper are less in performance; other sources contain motor shows, internet
ads.

Chart 4.2 showing the source of information about Hero

Table- 4.3 showing the influenced people for buying Hero

Influenced people No. of respondents
 Family 34
Myself 16

Friend 35

Sales representative 15

Total 100

Inference: -From the above table it is observed that, the buying behavior people mostly
influenced by family and friends the other factor is have less level of influence. The people
how using bike mostly youth & middle class people and they are influenced by their friends
and family respectively. The above table showing that 35% of people influenced by their
friends 34% people through family 16% people is buying on their need. 15% because of sales
representative
 Chart 4.3 showing the number people influenced for buying in %

Buying for Bought Rate

Family 34%
Myself 16%
Friend 35%
Sales Representative 15%

Table- 4.4 showing the preference of capacity &colour

No. of Preference of No. of
Capacity
respondents color respondents
100cc 17 Blue 23
125cc 28 Red 24
150cc 35 Black 39
200cc 20 Other 14
Total 100 Total 100

Inference: -
From the above table it is observed that, the bike ‘cc’ preference is deferent customer to
customer but the 35% people like 150cc bike and 28% like 125cc, 200cc bike 20% others
 100cc.e preference of color ‘BLACK’ is rating at near to 40% of people after that 24% like
Red color 23% Blue also . Other color like white gettingless importance in selection

Chart 4.4(1) showing the preference of capacity

Chart 4.4(2) showing the preference of colour

Table- 4.5 showing the responseson Vehicle delivery time

respondents No. of respondents

Yes (on time) 78
NO (not on time) 22
Total 100

Inference: -
From the above table it is observed that,
• 78% of respondents got delivery of their vehicle on time
• 22% says that the delivery of vehicle got delay
• After enquire about the 22% it’s showing that they asked for very demand vehicle like
PASSION &SPLENDOR bikes and some of them ask new bike like Maestro

Chart 4.5 showing the responses on Vehicle delivery time

Table- 4.6 showing availability test drive during on showroom visit

Respondents No. of respondents

Yes 92
 NO 8
Total 100

Inference: -
From the above table it is observed that, 92% of respondents got test drive during their
showroom visit, other 8% didn’t got because of two reason some of them ask the bike that not
showcase in showrooms and some of them gone small showrooms

Chart 4.6 showing availability test drive during on showroom visit

Table- 4.7showing the reliability of Vehicle

Respondents No. of respondents

Excellent 16
Good 23
Moderate 21
Satisfactory 39
unsatisfactory 1
Total 100

Inference: -
The above table shows how the customer rate the reliability of Hero bike, it is observed that
16% of them telling its excellent 23% respond that its good and 21% have moderate opinion
39% is satisfied with the performance and 1 of the respondent is not satisfied with the Hero
bike.

Chart 4.7 showing the reliability of Vehicle

Table- 4.8 showing level of Service Satisfaction

Respondents No. of respondents
Completely satisfied 34
satisfied 39
dissatisfied 12
Not at all satisfied 15
Total 100

Inference:-
The above table shows the satisfaction towards Hero bike on the time of Service 34% of
respondents are completely satisfied with the service provide by the company and 39%
customers are satisfied and 12% dissatisfied, 15% is not at all satisfied with the service
provide by the company the following chart shows it more clearly

Chart 4.8 showing level of Service Satisfaction

Table- 4.9 showing the brand name influence in purchase

Respondents No. of respondents Percentage

Yes 74 74%
NO 26 26%
Total 100 100%

Inference:-
From the above table it is observed that, the customers are influenced by the brand name
“HERO MOTOCROP” 74% of respondents are influence by the brand name and 26% are not
the brand “HERO” is the most selling bike in India and Its is the brand that selling more bike
in the world also

Chart 4.9 showing the brand name influence in purchase

Table- 4.10showing the reason for preference

Preference No. Of Respondents Percentage
Quality 25 25%
Price 20 20%
Brand Image 24 24%
Fuel efficiency 31 31%
TOTAL 100 100%

INTERPRETATION:

From the above table we can infer that 25% of the respondents gave preference to quality,
20% of respondents gave preference to price, 24% of respondents gave preference to brand
image and 31% of the respondents gave preference to fuel efficiency.
From the above findings, we can analyze that 69% of respondents were more quality
conscious and only 31% respondents gave preference to price and fuel efficiency.
The reasons are even though people are price conscious to some extent; the consumers are
more quality conscious than price conscious because they have enough income to buy two-
wheeler.
 Chart 4.10 showing the reason for preference

Table - 4.11 showing how long customer using hero two wheelers

No. Of
Time period
Respondents
Less than 6 month 24
6-9 month 23
9 -1 year 32
More than 1 year 21
TOTAL 100

Inference:-
From the above table we can infer that how long the customer holds the bike the split
between Hero and Honda happen less than 3 year back and this table help to know the using
period of customer 79% of people that in the research is brought their bike in the last year and
21% is using the bike more than 1 year.

Chart 4.11 showing how long customer using hero two wheelers

Table - 4.12 showing the area thatCustomer demanding to improve in

service
Area No. Of Respondents in %
Service in time 31
 Reliable service 16
Well trained mechanics 27
less labor charge 26
TOTAL 100

Inference:-
From the above table it is observed that, what is customer need that Hero wants to improve,
31% need improvement in service in time, 16% in reliable service, and 27% need well trained
mechanics, 26% less labor charge.

Chart 4.12 showing the area that Customer demanding to improve in

service

Table - 4.13 showing theproblems face at the time of service

No. Of Respondents in
Responses
%
High price spare parts 29
Low quality of spare parts 14
Delay in service 29
No problems 28
TOTAL 100

Inference:-
From the above table it is observed that, the customers are facing deferent problems at the
time of service,29% face high price of spare parts, 14% face low quality of spare parts, 29%
face delay in service, 28% respondents they didn’t face any problem.
 Chart 4.13 showing the problems face at the time of service

Table - 4.14 showing therating of Service Performance of Hero Motors

Response NO. OF RESPONDENTS PERCENTAGE

Very good 34 34%
Good 20 20%
Average 32 32%
Bad 8 8%
Very Bad 6 6%
TOTAL 100 100%

Inference:-
From the above table it is observed that, 34% of customer says service performance gives by
Hero MotoCorp Ltd, Is very good and 20% says it’s good , 32% says the service is average,8
respondents says the service is bad and 6% says it’s very bad, To overall we can conclude
that more than 85% is satisfied with the service provide by Hero MotoCorp Ltd.
Chart 4.14 showing the rating of Service Performance of Hero Motors

Table - 4.15 showing the good thing associate with your brand

NO. OF
Response PERCENTAGE
RESPONDENTS
Solid engineering 16 16%
Innovative features 25 25%
Value of money 21 21%
 High and consistent
29 29%
mileage
Better after sale service 9 9%
TOTAL 100 100%

Inference:-
From the above table it is observed that, what the customer feel that make Hero deferent
from other bike, 16% like the solid engineering, 25% says innovative features is good about
Hero MotoCorp, 21% respond that Hero giving the value of money, 29% brought because of
consistent mileage of Hero,9% like after sale service of Hero MotoCorp Ltd.
Chart 4.15 showing the good thing associate with your brand

Table - 4.16 showing the friend recommendation for Hero bikes

No. of
Respondents Percentage
respondents
Yes 82 82%
NO 18 18%
Total 100 100%

Inference:-
From the above table it is observed that, Out of the respondents 82% people will recommend
Hero bike to their friends it’s showing the 82% of customer are satisfied with their Hero bike,
and the remaining 18 % because of some reason not recommending Hero bike to their friends

Chart 4.16 showing that recommendation to Hero bikes

 CHAPTER – 6

FINDINGS

FINDINGS
• The Hero MotoCorp is leading the market. The difference is too big to cope up with, for any
manufacturer in short span. With proven products and many people having faith in brand, it is
quite a difficult task for others to take the Hero’s number one position.
• Hero MotoCorp India’s no. 1 two wheeler companies have posted growth of 11.28% in the
month of May 2017 compared to May 2016.
• Ability to understand customer’s needs and wants, maintenance cost is low.
• Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number
• The TV promotions are more influence the customer behavior of two wheeler sector.
• The purchase desiccations of consumers are influence by friends and family.
• Blue, Red, Black color bike with 150 cc to 200cc is fast moving.
• Most of the despondences are agree that the bikes are delivering proper time.
• The service provide by Hero MotoCorp is satisfied by more than 70% of customers.
• Brand name of Hero is still good in market after split with Honda, 74% of people like the
brand “HERO"
• Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction
• The research showing that consumer wants to get more service satisfaction.
• 82% of the customer likes to recommend Hero two wheeler to their friends, its shows they
are satisfied with the bike.
 CHAPTER -7

SUGGESTIONS / RECOMMEDATIONS

SUGGESTIONS AND RECOMMENDATIONS

 It is very hard to hold the pulse of a customer in the market. Customer’s satisfaction is
different for different people at different situations;
• Majority of the respondents were still unaware about different versions of Hero bikes.
Therefore I suggest the company personals should take initiative to create awareness about
these versions.
• Few of the customers expressed concern over frequency of the maintenance & service
problems faced by their vehicle and expressed ‘high satisfaction’ over it. Therefore, I suggest
them to re look at the vehicle & re-develop in order to stop the frequency of these problems.
• Hero MotoCorp want to give more importance in there service part its include timely service,
and quality of service
• Hero want to develop more promotion for there some models like sports bike and gear less
scooter
• Hero bikes want to increase their export market
• Hero MotoCorp Ltd should try to give more advertisements in news paper, bill boards in
that area to enable easy recall of the people for Hero MotoCorp Ltd.
CHAPTER – 8

CONCLUSION
CONCLUSION

Customer satisfaction is a marketing tool and a definite value added benefit. It is often
perceived by customers as important as the primary product or service your organization
offers.
For making a better relationship with customer they always use genuine parts in their
product. And after selling they have the services and maintenances. Their constant endeavor
is to support the company's mandate of providing highest level of customer satisfaction by
taking good care of customer’s two-wheeler service and maintenance through their vast
network of more than 2100 committed dealers and service outlets spread across the country.
Apart from that Hero MotoCorp Ltd focused on cleanliness and other aesthetics of the service
stations and add such air conditioned waiting area, internet surfing, coffee shops etc to
enhance the in house experience of the customers at those “customer touch point”. To ensure
that millions of customers in the rural area are not left waiting for adequate service as it is
impossible for the company to introduce service station at every nook and corner of the
country, mobile service stations are regularly arranged with prior intimation to public about
the rout that the mobile workshop would take when passing through that region so that
customers can come and get their two wheelers serviced. All these activities are aimed to
increase the customer loyalty and thus retaining customers.
References ( Bibliography and Webliography )

Websites –

• http://autocarpro.in/contents/technologyDetails.aspx?TechnologyID= 122
• http://www.wheelsunplugged.com/news/hero-motocorp-plans-go- abroad-new-models-
year/1236
• http://en.wikipedia.org/wiki/Hero_MotoCorp#cite_note-livemint1-20
• http://www.thehindubusinessline.com/companies/hero-motocorp-q1- net-down-11-at-rs-
549-cr/article4948658.ece
• http://www.moneycontrol.com/india/stockpricequote/auto-23-wheelers/hero-honda-
motors/HHM • http://www.heromotocorp.com/en-in/

Reference books:

1. General Accounting by Gupta and Agrawal

2. Fundamentals of Accounting by S Paul Reference
News Papers: 1. Economics Time
2. Times of India
3. Business Times
QUESTIONNAIRE

1.Do you have a bike?

( ) Yes ( ) No

2.Do you know about Hero Motocorp Ltd?

( ) Yes ( ) No

3.Which company bike do you have?

( ) Hero Motocorp Ltd ( ) Bajaj ( ) TVS ( ) Yamaha

4. Which features do you consider while purchasing a bike?

( ) Brand ( ) Mileage ( ) Comfort ( ) Designing

5. Were you attended prompty when you came to hero showroom?

( ) Yes ( ) No ( ) Not fully

6. Which marketing scheme of the Hero attracts you the most?

( ) Special offers ( ) Cash discounts ( ) Festival gifts ( ) Others

7.Which feature of the Hero bike attracts you the most?

( ) Designing ( ) Fuel efficiency ( ) Price ( ) Low maintenance

8.How do you rate the Pre sale service provided by Hero?

( ) Excellent ( ) Good ( ) Average ( ) Bad ( ) Poor

9.How would you rate the after sale services of Hero Motocorp Ltd?
( ) Excellent ( ) Good ( ) Average ( ) Poor

10.How is the availability of spare parts of the Hero Motocorp Ltd?

( ) Easily available ( ) Hardly available ( ) Not available