A STUDY OF MARKETING STRATEGIES & BUSINESS PROMOTION OF

HERO MOTOCORP'S LTD., NEW DELHI

OF

BACHELOR IN BUSINESS ADMINISTRATION

(Affiliated to Ch. Charan Singh University)

ACADEMIC SESSION

[2012-2015]

SUBMITTED TO:
SUBMITTED BY:
Ms. Pooja Rastogi Govinda Raj
(Faculty of BBA Department) Roll No –
9356590
BBA – VIth
Sem.

1
INSTITUTE OF MANAGEMENT STUDIES

ADHYATMIC NAGAR, GHAZIABAD

2
 DECLARATION

I hereby declare that the summer training report entitled "Marketing Strategies
& Business Promotion of Hero Motocorp's Limited" submitted in partial
fulfillment of the requirement for the award degree of BACHLOER OF
BUSINESS ADMINISTRATION (BBA) (Affiliated to CCS UNIVERSITY,
MEERUT), is my original work and not submitted for the award of any other
degree, diploma, fellowship or any other similar title or prizes anywhere else.

GOVINDA RAJ

3
 CERTIFICATE

This is to certify that Mini Project Report entitled “Marketing Strategies &
Business Promotion of Hero Motocorp's Limited” by GOVINDA
RAJ(9356590) at “IMS GHAZIABAD” is an original work and the same has not
been submitted to any other institute for the award of any other degree. The
suggestion as approved by the faculty were duly incorporated. The project has
been submitted in partial fulfillment of the requirements for the degree Bachlor of
Business Administration during the academic year2012-2015.
ABLE OF

Ms. POOJA
RASTOGI

(Mentor)

4
 ACKNOWLEDGEMENT

No Herculean task can be consummated without support and contribution from a

no. of individuals and that task is very essence of success in any colossal scheme.
These few paragraphs are an effort to epitomize my gratitude to all those who
helped me to complete my project successfully.

I am thankful to Ms.Pooja Rastogi Faculty Guide ,BBA Dept, IMS, Ghaziabad

for her able guidance and support at all time.

I am thankful to Mr. Vikas Chaudhary, Manager (Sales & Marketing), New

Delhi for his valuable guidance and supervision and provided me the best
opportunity to work under his guidance at all time.

I am grateful to all those people who provided me all the necessary information
directly or indirectly throughout this project report has been completed at time.

GOVINDA RAJ

BBA ( VI SEM )
Roll No. 9356590

5
 TABLE OF CONTENTS

Page No.

1. EXECUTIVE SUMMARY

07-8

2. INTRODUCTION

09-16

3. COMPANY PROFILE

12-70

4. OBJECTIVE OF THE STUDY

71

5. RESEARCH METHODOLOGY

72-77

6. GRAPHICAL DATA INTERPRETATION 78-90

7. FINDINGS & ANALYSIS

91-96

8. RECOMMENDATIONS & SUGGESTIONS

97

9. CONCLUSION

98

6
10. BIBLIOGRAPHY

99

11. ANNEXURE - QUESTIONNAIRE

100-102

7
EXECUTIVE SUMMARY

8
 EXECUTIVE SUMMARY

The objective of my project report was to have a complete inside look in

Automobile industry. The study is done to understand Marketing Stg. and

Business Promotion of HERO MOTOCORP'S and what strategies are required to

increase customer’s base further along with an edge over competitors.

For this purpose I conducted a market survey to know about the various players

and their preference in the industry taking into consideration the various services

and the services related services provided by them. The stepwise methodology

used included sampling, secondary research, survey research done through

personal interviews and interaction with people of different industry. The data was

then tabulated and analyzed. The information thus used by the survey was then to

discover the reasons for brand preference.

The report commences with a brief profile about the Automobile industry and the

players in the Indian market. A brief profile about HERO MOTOCORP’S has also

been given which carves the way for the introduction of the various services

offered by the company and their various features. The research methodology and

the data analysis are interpreted using various statistical tools.

The success of any business entity solely depends on how effectively does it

utilizes its optimum resources and how soon does it make arrangements for the

removal of the customer’s grievances. Moreover, the company should always be

9
ready to make necessary changes according to the requirement in order to attract

more customers so as to maintain a substantial growth in the market.

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I have tried to put my best efforts to complete this task on the basis of skill that I
have achieved during my studies in the institute. I have tried to put my maximum
effort to get the accurate statistical data. If there is any error or any mistake in
collecting the data, please ignore it.

11
INTRODUCTION

12
 INTRODUCTION

On the basis of the analysis and interpretation of the results of the survey, a layout

of the loyalty program was designed which could communicate customer’s

expectation from a loyalty program and bridge the gap between the desired

expectation of the people and the company.

Marketing should not be looked upon in a vacuum or in isolation. It is an essence

taking a view of the whole business organization and its ultimate objective

concern for marketing must penetrate all areas of the enterprise. Market survey in

today’s competitive world is a must for every organization.

This project is a study of market potential of Hero MOTOCORP. The rational

behind this particular study is to find out the present market scenario of various

brands & to find out the corporate need and perception.

It was a pleasurable experience to conduct a research on behalf of Hero

MotoCorp's pertaining to the study of the Automobile Sector. To carry out this

research a sample study was pursued where the target was made to the people of

Allahabad region. Various statistical and analytical tools and techniques are

applied to ascertain and depict the present scenario. Conclusion and there by

recommendation has been arrived at by proper and justified interpretation of the

result derived from the above said analytical tools and techniques.

13
 “We, at Hero Motocorp's, are continuously striving for synergy between

technology, systems, and human resources to provide 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 process, and develop teams that keep the

momentum going to take the company to excellence in the new millennium”.

14
AUTOMOBILE SECTOR
IN INDIA

15
 AUTOMOBILE SECTOR IN INDIA

 The Automobile sector is one of the fastest growing manufacturing sectors

in India.

 In the 90s the industry witnessed an average growth rate of above 20

percent.

 Indian Automobile Industry is characterized by a very high percentage (75

per cent) of two wheeler production, ranking second only to Taiwan.

 The world leaders in the sector are evincing keen interest in establishing

manufacturing facilities for manufacturing and assembling components.

 A politically stable and vibrant State, Andhra Pradesh is centrally located

with the support of seaports, international airports, assured and reliable

power supply, abundant water, broad base of auto component

manufacturers, highly trained, skilled and disciplined manpower and is

therefore, the preferred location for Automobile industries.

 The interest of the state has been duly noted by Global Auto Majors, who

have indicated their interest to consider Andhra Pradesh for establishing

manufacturing facility.

 The Government of Andhra Pradesh invites leaders in the industry to set

up manufacturing facilities to manufacture vehicles or vehicle components

16
 in the State. The ideal places to locate companies in the Auto Sector are

the Hyderabad-Zaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-

Tada-Sathiveedu and Vijayawada-Guntur corridors.

 The Government is also formulating an Auto Policy, which would give a

proper direction to the growth of the sector.

 There are more than 20 auto –component manufacturing companies in the

State, manufacturing components such as grey-iron castings, precision

aluminium castings, leaf springs,oils and lubricants, diesel fuel injection

equipment, electronics and auto electronics and auto electrical, front axles,

gears, forging, machined components, pressed metal components, pistons,

cylinder liners, nozzles, delivery valves, starter motors, alternators,

electronic regulators, high pressure die castings, clutch covers, fuel

filters ,etc.

 Most of these components are presently being supplied to Hero

MOTOCORP, TVS Suzuki, Escorts Yamaha, Bajaj and others. Amazon

Batteries are manufactured in Chittoor district. Around 119 components

manufacturers have been certified for ISO 9000 quality standards and

seven companies achieved the QS 9000 quality standard set by

government and motors association. Automobile is one of the

largest industries in global market. Being the leader in

17
 product and process technologies in the manufacturing

sector, it has been recognized as one of the drivers of

economic growth. During the last decade, well directed

efforts have been made to provide a new look to the

automobile policy for realizing the sector's full potential for

the economy. Aggressive marketing by the auto finance

companies have also played a significant role in boosting

automobile demand, especially from the population in the

middle income group.

 Our premise is the service quality in before and after will

buy from the firm that the perceive offers the highest

customers delivered value. Customers delivered value is

the difference between total customer value & total

customer cost.(or) service. Total customer cost is the

bundle of costs customers expect to incur in to Osmania

Journal of Management evaluating, obtaining, using and

disposing of the product / service.

If the performance exceeds sex petitions the customer is

highly satisfied or delighted. Many companies are aiming for high

satisfaction because they are much less ready to switch. Buyer’s

expectations formed on the basis of past buying experience

18
,friend’s & associates advice and marketers and competitor’

information and promises. If market ersraise expectations too

high, the buyer is likely to be disappointed .Even if the company

sets expectations too low, it won’t attract enough buyers. So the

expectations should match the performance.

Two-wheeler segment is one of the most important

components of the automobile sector that has undergone

significant changes due to shift in policy environment. The two-

wheeler industry has been in existence in the country since

1955. It consists of three segments viz. scooters, Motorcycles

and mopeds. In India there are some MNC’s and Indian company

dealing in automobile sector. The main key players who are

dealing in this sector are Hero MOTOCORP, Bajaj, Yamaha,

MOTOCORP, and TVS. Hero MotoCorp's is the biggest player in

this sector in India as well as in the world and playing a very

important role in two wheeler automobile sector. Hero

MOTOCORP, Bajaj and TVS are the Indian companies and Yamaha

& MOTOCORP are international automobile brand.

19
COMPANY PROFILE

20
 COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero MotoCorp's Ltd.) is the world's largest

manufacturer of two - wheelers, based in India. In 2009, 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.

The story of Hero MotoCorp's 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.

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.

21
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.

Hero MotoCorp's has a reputation of being the most fuel-efficient and the largest

selling Indian motorcycle. Its commitment of providing the customer with

excellence is self-evident. A rich background of producing high value products at

a reasonable price led the world's largest manufacturer of motorcycles to

collaborate with the world's largest bicycle manufacturer.

It was this affinity in working cultures of MOTOCORP Motor Company of Japan

and the Hero Group that resulted in the setting up of Hero MotoCorp's Ltd. A

relationship so harmonious that Hero MotoCorp's has managed to achieve

indigenization of over 95 percent, a MOTOCORP record worldwide.

Tactical promotions and excellent marketing helped Hero MotoCorp's establish

itself as an intelligent purchase. Its unique features like fuel conservation, safety

riding courses and mobile workshops helped the group reach in the interiors of the

country.

22
Finance services helped facilitate purchase, as did an efficient dealer network

across the country.

Well-entrenched in the domestic market, Hero MotoCorp's Ltd. turned its

attention overseas, and exports have been steadily on the rise.

23
Over the years, the Company has received its share of accolades, including the
National Productivity Council's Award (1990-91), and the Economic Times -
Harvard Business School Association of India Award, against 200 contenders.

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

The founder and patriarch of the $3.2 billion Hero Group is your classic first generation

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

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

Two Wheeler Company.

Instinctive from a young age, Brijmohan Lal made a rather unusual start in life.

Around the time when the freedom movement in India was taking shape in the

late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near

his home in Kamalia (now in Pakistan). He was only six years old then.

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

his business story after partition in 1947, when he and his brothers relocated to

Ludhiana. The family set up a company that provided poor people with basic

transport (cycles). Three decades later, as India evolved; he added a second

crucial chapter - which visualized affordable and technologically superior

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

24
INTERNATIONAL

25
 SCENARIOINTERNATIONAL SCENARIO
A two-wheeler is used as a personal/family vehicle or a goods carrier in the

developing countries, whereas it is confined to sports/racing (heavy motorcycles)

or short distance shopping (mopeds) in developed countries.

The world two-wheeler market is dominated by Japan. Japanese manufacturers

account for around 65% of the total two-wheeler production in the world.

However, production within Japan has been declining due to lower domestic

demand and shift in manufacturing base outside the country. Japan is also the

world's largest exporter of two-wheelers in the world controlling around 75% of

the world trade. Its major markets are China, USA and Europe. In terms of player

positions, MOTOCORP Motors Corporation, Yamaha Motors and Suzuki Motors

Corporation share the top three slots in the world two-wheeler market. The table

below shows the production and sales figures of motorcycles and scooters in

Japan during the past decade More than 50% of the production in Japan is

exported out of the country. This scenario contrasts directly with the Indian

scenario. In India, only about 2% of the production in FY99 were exported. The

Asian continent is the largest user of two-wheelers in the world. This is due to

poor road infrastructure and low per capita income, restrictive policy on car

industry.

26
The technology for two-wheelers is not as well developed as for car industry. This

is due to oligopoly between top five players in the segment, compared to thirty

manufacturers in the car industry.

There has been a great change in the customer preferences from the erstwhile all

pervasive scooters to the sleek motorcycles and other high-powered trendy

motorbikes. Numbers speak much more about the loss in volumes of scooter

sales. The shift has occurred in a short span of time, in fact so short that many

players in the industry are yet to fully acknowledge the shift. They are yet to mold

their product portfolios to take advantage of this shift. As recently as 1994,

scooter sales accounted for 48 percent of the total two-wheeler volumes. By 2001,

however, their share in the two-wheeler sales fell to less than 25 percent by 2001.

The tables turned in favor of motorcycles, which accounted for 57 percent of the

total two-wheeler volumes for the 2001 fiscal rising from a dismal 28 percent in

1994 and this trend of increased sales of motorcycles continued. The production

and sale of motorcycles has been continuing at a pace of 20 percent and 25

percent respectively during the first half of the current fiscal year.

One of the factors that contributed to the steep decline of scooter sales in 2001 is

the sales tax rationalization in the budget of 2001, which resulted in a sharp fall in

the sales of geared scooters in 2001. This raised duties on geared scooters in

western region of the country, which accounts for a substantial portion of the

27
industry's volumes. The trends of sales in two-wheeler industry as a whole are on

the decline. From a growth rate of more than 20 percent during the fiscal of 1995,

the industry has come down to a zero percent growth rate by the fiscal year 2001.

The scooters and the mopeds segments have been on the decline for some time

now. But the robust growth in the motorcycle segment has been the only saving

grace in the two-wheeler industry.

The period between 2005-2009 has been characterized by the software boom,

private industry emerging as a substantial employment provider and coming of

age of the generation that had started to feel comfortable and adopt western

culture from the satellite television. The young earning men today increasingly

prefer motorcycles to scooters unlike the generation of their fathers where a

geared scooter was "the two-wheeler". Even in the rural market, consumers prefer

motorcycles for their sturdiness and ability to sustain bad road conditions. This

has added up to the costs of scooters while most motorcycles are in tandem with

these new norms.

Adding to the woes of geared scooters, a number of ungeared scooters are

flooding the market. Vehicles in this segment such as TVS Scooty, Bajaj Sunny,

and Kinetic MOTOCORP have found an instant market with the elderly

population, women and teenagers, who find these vehicles more comfortable with

fewer hassles as compared to the geared scooters. The sales of these ungeared

28
scooters have also been on the rise, registering a growth rate of around eight

percent in the last financial year. In addition, the segment of buyers who would

have gone for mopeds five years earlier are today showing interest towards the

ungeared scooters, adding up to the volumes of these vehicles. The obvious

reason is that the pricing of both these segments of vehicles is so close that the

borders are fast getting wiped away in the minds of consumers. One who is going

in for a moped would not hesitate to spend a thousand or two more to get a

scooterette offering better features.

29
HERO MOTOCORP'S
"Hero", the brand name symbolizing the steely ambition of the Munjal brothers,

came into being in the year 1956. From a modest manufacturer of bicycle

components in the early 1940's to the world's largest bicycle manufacturer today,

the odyssey was fueled by one vision - to build long-lasting relationships with

everyone, including workers, dealers and vendors. This philosophy has paid rich

dividends through the years.

Hero, a name synonymous with two wheelers in India is today a multi-unit, multi-

product, geographically diversified Group of companies. Through fully integrated

operations, the Munjals roll their own steel, make critical components such as free

wheels for their bicycles, and have the foresight to simultaneously diversify into

myriad ventures, like product designing, IT enabled services, finance and

insurance, just to name a few.

Like every success story, Hero's saga contains an element of spirit and enterprise;

of achievement through grit and determination, coupled with vision and meticulous

planning. Throughout its success trail, the Hero Group and its members have

displayed unwavering passion of setting higher standards for themselves and

delivering simply the best to their customers.

The Hero Group philosophy is: "To provide excellent transportation to the

common man at easily affordable prices and to provide total satisfaction in all

its spheres of activity." Thus apart from being customer-centric, the Hero Group

30
also provides its employees with a fine quality of life and its business associates

with a total sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has

become a way of life and a part of the work culture of the Group. This is what

drives the Group to seek newer vistas, adopt faster technology and create quality

driven products to the utmost satisfaction of customers, partners, dealers and

vendors.

Today the Hero Group has a number of accolades and achievements to its credit …

yet consumer requirements and newer technologies provide fresh challenges every

day, and at Hero the wheels of progress continue to turn.

Hero MotoCorp's is the largest player in the motorcycle segment. Its Focus is on

manufacturing mobikes which are contemporary in design and style and as well as

eco friendly to environment. Hero MotoCorp's ltd was the first company to

concentrate manufacturing fuel-efficient bikes instead of powerful bikes. The

company has a comprehensive range of bikes in its stable

1. CD down

2. CD delux

31
 3. Splendor plus

4. Splener pro

5. Passion pro

6. CBZ,

7. Passion. X pro

However ‘ Street’ failed to evoke market fancy while sporty ‘ CBZ ‘ dropped

down the popularity chart in early 90s. Hence the company continues to rely on

urban – centric ‘ Splendor ‘; its primary revenue spinner with the USP of fuel –

efficiency, which accounts for over 60-70%of its sales. The " Passion " launched

in mid -Jan 2001has had a resounding success contributing to 26% of total

volumes and has not cannibalized the volumes of ‘ Splendor ‘. With the sale of

over 1mn motorcycles in 2000-01, the company has also become the largest

volume seller among all MOTOCORP Companies and ventures in the world. The

company has now shifted its focus towards launch of new products. HHML

launched a 100cc motorcycle ‘ Joy ‘ in FY2001delivering 65 to 70 km per litre in

city driving conditions. The company hopes to achieve sales of 8,000 to 10,000

units of Joy per month. The company is also planning to launch motorcycles in

200cc –300 cc category and is looking at the possibility of introducing a " luxury

motorcycle " in the same category. HHML has planned an additional capacity of

1.5mln units pa at Dharuhera plant by investing Rs3bn ($65mn) to meet the huge

and increasing demand for motorcycles. The MOTOCORP Motor Corporation of

32
Japan has set the annual sales target of 1.75 mln 2-wheelers (25% of worldwide

target) for 2003 in India, to be contributed to the extent of 1.5 mln by HHML and

the balance by its wholly owned subsidiary MOTOCORP Motorcycles & Scooters

India Pvt. Ltd. HMSI launched ‘ Activa ‘ the 4 stroke automatic medium-sized ,

102-cc scooter in July 2001 and is looking at volumes of about 50,000 from its

first product. It also plans to launch another scooter next year are also in the

offing in order to increase the sales volumes to 1 lakh units.

33
MARKETING STRATEGIES OF

HERO MOTOCORP'S Ltd.

34
MARKETING STRATEGIES OF HERO MOTOCORP'S Ltd.

By everyone. The farmer in Punjab. The fisherman in Kerala. The trader in

Mumbai. And the worker in Bengal. Imagine having a place in their hearts.

Imagine echoing their heartbeats. Imagine being part of the great Indian fabric.

That’s the great Indian dream. Of every company and it is what Hero MotoCorp's

is trying to accomplish through its advertisement and marketing initiatives for the

entire range of Hero MotoCorp's motorcycles and the latest campaign broadcasted

on all premier channels “ desh ki dhadkan “ is a step in that direction. Says

Navroze D. Dhondy, CEO, Percept Advertising, which made the 60-second

television commercial, "We wanted to say that Hero MotoCorp's was more than a

bike. It was a friend, something that has been part of your life, something that has

shared your best moments."

So who's the target? Everybody. The models in the advertisement range from

children to old people. The message ? Everybody needs a Hero MOTOCORP. In

the shape of a CD100, or a CBZ, or a Splendor, or a Street. "Desh ki Dhadkan" is

the catch line. "Dhak, Dhak," the message. "We echo the heart beat of every

Indian," the claim. "We were looking for something new. We wanted to tell the

viewer that we were way above the rest," says Atul Sobti, senior vice-president,

marketing, Hero MOTOCORP.

35
Did somebody say new?

The India theme was plugged by Bajaj Auto with its Buland Bharat ki Buland

Tasvir. Then there was Apollo Tyres, Reynolds, Bharti Telecom… A route

numerous companies have treaded time and time again.

"This is a campaign by the right company at the right time. We waited till we were

actually the heartbeat of India," says Sobti. "That's why we went in for an

umbrella kind of advertising," adds J. Narayan, advertising manager, Hero

MOTOCORP. "We wanted to communicate two things. Our market leadership

and the joy of ownership. We wanted to reach our audience at a very emotional

level."

Market research carried out all over the country for three months gave the creative

team at Percept the idea for the ad. "Everybody kept talking about how Hero

MotoCorp's motorcycles were part of their lives," says Dhondy.

That was also the message that the company wanted to communicate. A slew of

product launches had glutted the market, and Hero MOTOCORP, the market

leader in the motorcycle segment with a 47 per cent share, wanted to get out of

36
the trap of product oriented or range-oriented marketing. This was the brief that

was given to Percept advertising. And Percept says that the advertisement was the

first and only presentation it had to make.

37
The advertising is in tune with Hero MOTOCORP's ambition for the Indian
market. Worldwide, MOTOCORP's Splendor is the largest selling 100-cc bike. It
is a success that the company hopes to repeat in India as it strives to attain
leadership of the two-wheeler segment where it currently has a 26 per cent market
share.

38
PLACEMENT OF HERO MOTOCORP'S

A thorough understanding of the fast-changing consumer behavior, new market

segments and product opportunities along with sensitivity to changing customer

needs, form the core of Hero's marketing strategy and philosophy.

At Hero we essentially have a completely customer-driven approach. A nation-

wide dealer network comprising of over 3,500 bicycle dealers, 350 dealers for

mopeds and 225 franchise holders for motorcycles, ensures convenient access to

the Group's products across the country.

Conventionally, very few Indian bicycle manufacturers were interested in

exports. However, the Hero Group's foray into the overseas markets pioneered

Indian exports in the bicycle segment as early as 1963.

While initial exports were restricted to Africa and the Middle East, today more

than 50 percent of the Group's bicycle exports meet the demands of sophisticated

markets in Europe and America. This is primarily because of appropriate product

development and excellent quality that Hero offers.

The Group has undertaken a steady up gradation of technologies and there has

been diversifications and setting up of newer establishments to meet stringent

international standards.

39
At the core of it all is a customer-centric scheme of policies and production and

the bottom line is to "Add Value while Engineering Satisfaction."

40
Its main Models are
 Hero Motocorp

o Splendor Plus

o Splendor Pro

o Passion Plus

o Splendor NXG

o Achiever

o Krizma

o Passion XPRO

o Super Splendor

o Glamour

o Ignitor

41
 VISION

OF THE

COMPANY

42
 VISION OF THE COMPANY

The Legend of Hero Motocorp's

What started out as a Joint Venture between Hero Group, the world’s largest

bicycle manufacturers and the MOTOCORP Motor Company of Japan, has today

become the World’s single largest two wheeler Company. Coming into existence

on January 19, 1984, Hero Motors Limited gave India nothing less than a

revolution on two-wheels, made even more famous by the ‘Fill it – Shut it –

Forget it ‘ campaign. Driven by the trust of over 5 million customers, the Hero

MotoCorp's product range today commands a market share of 48% making it a

veritable giant in the industry. Add to that technological excellence, an expensive

dealer network, and reliable after sales service, and you have one of the most

customer-friendly companies.

This is proved by the company’s sales over the years:

1985.86 43,000 units

1989.90 96,200 units

1998.99 5,30,600 units

1999-00 7,61,210 units

2000-01 10,29,555 units

43
2001.2 14,25,195 units

2002.3 17,78.392 units

Customer satisfaction, a high quality product, the strength of MOTOCORP

technology and the Hero group’s dynamism have developed HTML scale new

frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing Director,

“We will continue to make every effort required for the development of the

motorcycle industry, through new product development, technological innovation,

investment in equipment and facilities and through efficient management”.

44
BOARD OF DIRECTORS
Name of the Directors
1 Mr. Brijmohan Lall Munjal
2 Mr. Pawan Munjal
3 Mr. Toshiaki Nakagawa
4 Mr. Sumihisa Fukuda
5 Mr. Om Prakash Munjal
6 Mr. Sunil Kant Munjal
7 Mr. Masahiro Takedagawa
Mr. Satoshi Matsuzawa
8 (Alternate Director to Mr. Takashi
Nagai)
9 Mr. Pradeep Dinodia
10 Gen.(Retd.) V. P. Malik
11 Mr. Analjit Singh
12 Dr. Pritam Singh
13 Ms. Shobhana Bhartia
14.Mr. Meleveetil Damodaran
15.Mr. Ravi Nath
16.Dr. Anand C. Burman
45
Designation
Chairman & Whole-time Director
Managing Director & CEO
Joint Managing Director
Technical Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
Non-executive & Independent
Director
 PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

Company Of the Year awarded by Economic Times Awards =or Corporate Excellence

2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 –

2010

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of The Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of The Year Awards 2009

'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009

and Passion Pro adjudged as CNB Viewers' Choice Two-wheeler

2009 Top Indian Company under the 'Automobile - Two-wheelers' Sector by the Dun &

Bradstreet-Rolta Corporate Awards

Won Golden the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

46
 NDTV Profit business Leadership Award 2008 - Hero MotoCorp'swins the Coveted

"NDTV Profit Business Leadership award 2008"

TopGear Design awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car india & Bike India Awards - NDTV “Viewers’ choice Award” to

Hunk in Bike category

IndiaTimes mindscape and Savile Row ( A Forbes Group Venture ) loyalty Awards -

“Customer and Brand Loyalty award” in Automobile (two-wheeler) sector

Asian Retail congress Award for Retail Excellence (Strategies and Solutions of

business innovation and transformation) - Best Customer Loyalty program in

2008
Automobile category
NDTV Profit Car india & Bike India Awards - 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 Extreme

The NDTV Profit Car India & Bike India Awards 2007 in the following category:
 Overall "Bike of the Year" - CBZ Extreme
2007

 "Bike of the Year" - CBZ Extreme (up =o 150 cc category)

 "Bike Technology of the Year"

"Bike of the Year" - CBZ Extreme by overdrive Magazine.

47
 “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 Adjudged 7th Top Indian =ompany by Wallstreet Journal Asia (Top Indian Two

Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of world’s 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

Awards
 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 Top Indian Company by Wallstreet Journal Asia (Top indian Two

Wheeler Company)

Top Indian company in the Automobile - Two Wheeler sector - American Express

Corporate Awards 2006.

Hero MotoCorp'sSplendor rated as india's most preferred two-wheeler brand at the

Awaaz Consumer Awards 2006.

48
 Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC

in the 'Automobiles' category.

Bike Maker of the Year Award by Overdrive magazine.

2005 ICWAI National Award for Excellence (Second) Cost Management 2004 in the

private sector category by ICWAI.

10th Motilal Oswal Wealth Creator Award for the most consistent wealth creator for

the period 1991-2005.

2004 Winner of the Review 2005 - 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.

49
 Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for

HR Excellence

National Award for Excellence in Corporate governance 2004 by The Institute of

Company Secretaries of india.

Winner of the Review 2004 Asia 's Leading companies Award (3rd Rank amongst the

top 10 Indian companies).

2003
Most Respected Company in Automobile Sector by Business World.

Bike Maker of the Year by overdrive Magazine.

Bike Maker of the Year by Overdrive Magazine.

50
MILESTONES

51
 MILESTONES

Hero's success saga contains an element of spirit and enterprise; of achievement

through grit and determination, coupled with vision and meticulous planning.

1956 Hero Cycles Limited is established.

1961 Rock man Cycles Industries Limited established which the largest manufacturer

of bicycle chains and hubs is today.

1963 It pioneered bicycle exports from India - a foray into the international market.

1971 Highway Cycles was set up to meet the demands of Hero Cycles. It is today the

largest manufacturer of single speed and multi-speed freewheels.

1975 Hero Cycles Limited became the largest manufacturer of bicycles in India.

1978 Majestic Auto Limited was formed and the Hero Majestic Moped was introduced.

1981 Munjal Castings established.

1984 Hero MOTOCORP Motors Limited established in joint venture with

MOTOCORP Motors of Japan, to manufacture motorcycles.

1985 Munjal Showa Limited established to manufacture shock absorbers and struts and

is today among the top two shock absorber manufacturing companies in India.

52
1985 The 100 cc Hero MOTOCORP Motorcycle arrived and by 1988 was the No. 1

among all motorcycles in India.

1986 Hero Cycles Limited entered the Guinness Book of Records as the largest bicycle

manufacturer in the World.

1987 Hero Motors, a division of Majestic Auto Limited set up in collaboration with

Steyr Daimler Puch of Austria.

1987 Gujarat Cycles Limited, now known as Munjal Auto Industries Limited was

established to manufacture and export state-of-the-art bicycles and allied products

in its fully automated plant at Waghodia.

1987 Sunbeam Auto Limited, earlier a unit of Highway Cycles Limited, established as

an ancillary to Hero MOTOCORP. It is the largest die casting plant in India.

1988 Introduced "Hero Puch" from Hero Motors Limited. This revolutionary machine

immediately set new records of petrol efficiency and usable power in 50 - 65 cc

machines.

1990 Hero Cold Rolling Division established and is one of the most modern steel cold

rolling plants.

1991 Hero MOTOCORP receives National Productivity Council's Award.

53
1991 Hero MOTOCORP receives the Economic Times - Harvard Business School

Association Award against 200 contenders.

1992 Munjal Showa Limited receives National Safety Award.

1993 Hero Exports established as the International Trading Division for Group and non-

Group products.

1995 Hero Corporate Services Limited as the service segment for the Hero Group

Companies, ancillaries, suppliers, dealers and other associates.

1996 Hero Winner, a large-wheeled scooter was introduced by Hero Motors Limited

with a choice of 50 cc and 75 cc engines.

1996 Munjal Showa Limited receives British Council's National Safety Award.
1998 Hero Briggs and Stratton Auto Private Limited were set up to produce 4-stroke

two-wheeler engines in various cubic capacities.

1998 Munjal Auto Components established to manufacture gear shafts and gear blanks

for motorcycles.

2000 The Hero Group diversifies into IT and IT enabled services through its service

segment - Hero Corporate Services Limited.

2000 Hero MOTOCORP emerges as the market leader in motorcycles with sales

Of over a million motorcycles and a strong market share of 47%.

54
2002 Hero Global Design established to offer engineering services in CAD/CAM/CAE

related to New Product Development, Design, Engineering and Manufacturing.

2004 Hero Cycles ties up with National Bicycle Industries, part of Matsushita Group to

manufacture high-end bicycles.

2006 Fastener World Established.

2008 Easy Bill Established to offer utility bill collection & retail services.

2009 Tie up with Live bridge Inc., USA.

20010 Tie up with Bombardier - Rotax GmbH for scooter engines.

Tie up with Aprilia Scooters, Italy.

2011

2012 Hero MOTOCORP continues as the World's largest manufacturer of two-wheelers

with annual sales volume of 2.07 motorcycles and a market share of 48%.

Retail Insurance business established.

2013 Hero MOTOR 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.

55
First Scooter model from Hero MOTOCORP - "Pleasure" introduced.

56
MEDIA USED BY HERO MOTOCORP'S FOR PROMOTION

 TELEVISION ADVERTISEMENT

 CAMPUS ROCK IDOLS

 HERO MOTOCORP'SSA RE GA MA PA

 MTV HERO MOTOCORP

 ROADIES

MTV Hero MotoCorp'sRoadies has been the longest running adventure reality series

on Indian television and among the only ones that has grown in popularity, scale

and viewership over various seasons

 TERRAQUIZ

The Energy and Resources Institute (TERI) and Hero MotoCorp's Ltd.

, the world's largest two-wheeler manufacturer, in association with

the Ministry of Environment & forests (MoEF), organises TerraQuiz ,

57
 a one-of-its-kind international inter-school environment quiz

competition

 PRINT MEDIA

58
INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market

share

75% market share

HERO MOTOCORP Motorbikes
Scooter+Motorbikes+ Scooterate 25% market share
BAJAJ AUTO
Scooter+Motorbike+Scootrate 30% market share
LML
Motorbikes+Scootrate 15% market share
TVS
Motorbikes 15% market share
YAMAHA
Motorbikes 10% market share
ENFIELD

According to the recent results company (Hero MOTOCORP) registered a sales

increased by 24.5% over the past years. Same month TVS also registered increase

of 45% while the other companies are not enjoying quiet good increase in sales.

While the whole industry registered an increase of about 17% only. So in present

scenario the Hero MotoCorp'scomes as the leader of whole automobile segment

while there is immense competition in industry to get the highest market share.

59
60
BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly,

Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its

brand ambassadors joining the add campaign together to promote “Ambition”.

All of these celebrities are the member of Indian cricket team and very much

popular in younger generation. In the last year with the launch of its new premium

bike Karizama Hero MotoCorp'ssigned its new brand ambassador who is a cine

star and is also very popular. He is Hritik Roshan.

Service Your Bike

Hero MotoCorp'shas always taken a lead in terms of defining service standards in

two wheeler industry with an aim to provide "Total Customer Satisfaction" for

their valuable customers across the country and also internationally. We are

constantly endeavoring to improve the quality of our service facilities at our

Dealerships. The first and foremost step to achieve this was creating Automated

Workshops at our Authorized Dealerships and Service Centers across the country.

61
Automated Workshops

Hero MotoCorp'shas the largest chain of Automated Workshops providing service

to their valuable customers by using latest service technology. Automated

Workshops have standard layout, hydro electric motor cycle lifts, dust free engine

rooms and use pneumatic tools and equipment to ensure quality repair in

customers motorcycle. The workshop environment and usage of pneumatic tools

increases mechanics efficiency and their motivation to provide quality service.

The layouts have been standardized to ensure that there is a transparency of

service. The customers can view their motorcycle repair while sitting comfortably

watching TV or relaxing in the customer lounge. Workshop Automation has

become a mandatory service standard for all Hero MotoCorp'sDealers and Service

Centers.

TRAINING

The regular Technical Training Programmes for Dealers Workshop staff to keep

them updated and refreshed about the latest price technology, product technical

details as well as service and repair procedures to handle customers motorcycle

with utmost care as well as to provide them the service quality of highest order is

a focus area at Hero MOTOCORP. Hero MotoCorp'shas six (06) training centers

across the country. There are 05 zonal training centers of Pune, Bangalore,

62
Calcutta, Chennai and Delhi to take care of technical training requirements of

dealers in each zone as well as local technicians. There is a National Training

Center at Dharuhera to take care of all advanced level technical programmes for

our dealers staff and our in house service engineers. Hero MotoCorp'skeeps an

organizing Dealers Mechanics Contest at Zonal Level and National Level to

develop competitive spirit among mechanics as well as in the process to update

their skills and product knowledge.

CUSTOMER SERVICE

Hero MotoCorp'skeeps on taking always-new initiatives to maintain its leadership

on service as well as enhance customer satisfaction level on an ongoing basis.

Some of the new initiatives related to customer service are as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers

· Pre Paid Reply Cards

· Automated Mobile Service Workshops

· Mega Millennium Camps

· On the Job Training Programmes

· Local Mechanics Training

63
There are many more initiatives, which we keep on taking along with our dealers

to keep our customers always in our mind on top priority.

Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero MotoCorp'sis also launching very soon a novel concept and a very major

initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of Hero

MOTOCORP's motorcycle delivery process at the showroom. Customers shall be

educated on Safe Riding techniques through various audio visual aids. Safety

Instructors shall be imparting riding skills as well as education to the customers.

Dealers shall also conduct a major programme in their respective towns with the

association of local traffic police on a regular basis on safety education and

correct riding techniques.

64
PRODUCT

OF

65
 HERO MOTOCORP

PRODUCT RANGE OF HERO MOTOCORP

100 CC

100 Splendor Plus

Splendor pro

66
Passion Pro

Splendor nxg

67
150 cc

Achiever

Karizma

68
125 cc

Super Splendor

Glamour

69
 Ignitor

225 CC

Karizma ZMR

70
OBJECTIVE OF THE STUDY

71
 OBJECTIVE OF THE STUDY

The study was done primarily with the following objective in mind.

 To study the brands of Hero MotoCorp's& consumers perception with its

competitors.

 To know why people buy Hero MotoCorp'sand why some people prefer

other company.

 To study the features of different brands that give a good idea of various

products and services offered by the company.

 To understand the competitive environment in which the company is

operating and is desired to meet customer need and satisfaction.

 To provide useful information to the company about the product features

of various competing companies.

72
73
RESEARCH METHODOLOGY

74
 RESEARCH METHODOLOGY

The methodology used in conducting the research work on HERO

MOTOCORP'Swith major emphasis on its sales and marketing strategies involve

the following steps:

I have selected Hero MotoCorp'sfor my summer training because it is the

company that is growing day by day. It has maximum market share with

comparison to its competitors. And it is the company that gives highest sales and

it is also the highest two-wheeler manufacturer.

PROBLEMS STATEMENTS

Defining the objective is the most important part of any study process. Proper

defining of the problem is a must for proceeding further with the research process.

The type of study to be carried out, the questions to be raised, the sampling

procedure to be followed, and the data to be collected, all depends on a correct

understanding of the problem. Also, by clearly focusing on the real problem, the

research job can be simplified and completed with the minimum cost, effort and

data.

AREA COVERED : NEW DELHI

75
76
Identified problem or the objectives of the research discussed in the report are:

1. Developing the research plan:

In this a plan was developed about how to collect the require information i.e.

whom to contact for gathering the relevant data. Data is the foundation of all

research. It is the raw material with which a researcher functions.

Therefore, it requires great care to select the sources of data. Data, or facts, may

be obtained from several sources. Data sources can either be primary or

secondary.

A. Secondary data:

The sources from which secondary data was collected:

 Press releases of the company.

 Newsletters and In-house journals.

 Brochures and detailed descriptive leaflets

 Magazines like Business World, Outlook, Auto India, etc.

 Websites such as www.heroMOTOCORP.com, www.google.com. These

were the sources from which secondary data has been gathered. Most of

77
 the information presented in this report was extracted from the above data

sources.

B. Primary data:

Collection of primary data was conducted by visiting the people personally for

the preparation of the report.

2. Research approach:

It means the way by which the information was collected. Visiting the various

places of Allahabad, getting the questionnaire filled by different individuals.

Beside this, frequent visit to the showrooms of the company was of great help

to conduct the analysis and research work.

3. Contact methods:

Instrument or data collected Forms: It is the method by which data is gathered.

It could be done through various instruments like questionnaires, observations,

78
getting information from the staff members of the agency, contacting to the

motor mechanics was sufficient enough to conduct the study.

79
4. Collection of information :
The primary information was collected by face-to-face and direct interviews

with the peoples and the customers. They provide the relevant information

regarding the profile of the company as compared to the other company in the

Indian market. Most employees suggested visiting company’s web site, as it

was not possible for them to spare time from their busy schedules.

The secondary sources of information were various web sites of the

companies, newspapers & magazines such as The Times of India, The

Hindustan Times, Business world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of the

information has been done on the basis of various sales and marketing

strategies adopted by the company during its tenure.

6. Reporting and conclusions and recommendations:

This is the most vital part of the work undertaken. After collection and

analysis of data, it was recorded in the form as prescribed. The major part of

the report is the findings. The finding also includes charts, tables and diagrams

etc. The report also mentioned the limitations of the project undertaken. Then

conclusion has been drawn out of the findings and various recommendations

80
 have been given at the end of the report. Certain tables on the basis of which

the findings were made have been included in the appendices section followed

by the bibliography.

SCOPE OF THE STUDY

Hero MotoCorp'sis spreading its wings and widening its business horizon to reach

and serve customers at new centers in the year ahead. The company services are

backed by a highly motivated and technology driven team to achieve customers

need, product expertise and geographic reach.

The study is oriented towards the concept of different brands offered by Hero

MotoCorp'sand its competitors to its customers. The company has endeavored to

move fast in providing market solution, which maximize customer needs and

convenience, using multiple delivery channels in composing the agency network,

service centers, lower service cost and increased efficiency.

81
82
LIMITATIONS

83
LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company to

assess how far the customers are satisfied with product and services of Hero

MOTOCORP. During the course of the study the following limitations were

observed:

 The method will be unsuitable if the number of persons to be surveyed is

very less as it will be difficult to draw logical conclusions regarding the

satisfaction level of customers.

 Interpretation of data may vary from individual depending on the

individual understanding the product features and services of the company.

 The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

 It is very difficult to check the accuracy of the information provided.

 Since all the products and services are not widely used by all the

customers it is difficult to draw realistic conclusions based on the survey.

84
GRAPHICAL

85
DATA INTERPRETATIONGRAPHICAL DATA INTERPRETATION

Sale of Hero MotoCorp'sin Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale of

Hero MotoCorp'sis less but in urban area it gives very exiting result. This may be

because of the conditions of roads there.

Area % of Respondents

Urban Area 72

Rural Area 28

28%

72%

Urban Area Rural Area

PARTICULER AREAS OF RESPONDENTS

86
All the respondents were from different areas. The samples were taken from the

mentioned areas for the survey. It was observed that the people of main town like

to use Hero MotoCorp'sas they like all features of it. And is according to there

pocket

Areas % of respondents

Motijheel 42

Maripur 12

Chatta Chock 26

Mithan Pura 14

Other 6

6%
14%
42%

26%

12%

Motijheel Maripur Chatta Chock Mithanpura Other

FAMILY INCOME OF RESPONDENTS

87
The income distribution of the families of respondents shows that the bike, which

was considered earlier to be out of range for middle class families is now

becoming very fast an article for them.

Family income (Rs.) % of Responses

5000-10000 10

10000-15000 46

15000-20000 36

Above 20000 08

8%
10%

36%
46%

5000-10000 10000-15000 15000-20000 Above 20000

88
 PERSONS WHO KNOW TODRIVE BIKE

Almost every person know how to drive a Bike (In my Survey)

Response % Of respondents
Driving known 96
Driving not know 04

4%

96%
Driving known Driving not know

89
 FACTOR PROMPT TO BUY HERO MOTOCORP

It should be stated that the performance is the most important factor followed by

look. The possible combination and corresponding number of respondents are

shown in the table below.

Features % of respondents

Performance 18

Look 11

Availability 5

Price 1

Maintenance 4

Brand image 5

After sale service 6

10% 12% 36%

8%

2% 10% 22%
90
Performance Look Availability
Price Maintenance Brand image
After sale service
HOW DID THE RESPONDENT CAME TO KNOW ABOUT THE BIKE?

The best media of advertisement (according to which the respondents came to

know about the bike) is the ads on television. Friends & magazine are the other

sources. Only 2 % of them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46

Magazine 36

Friends 14

Hoardings 02

Others 02

2%
14% 2%

46%

36%

Television
Magazine
Friends
Hordings
Others

91
PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash.

Only 6% of the respondents say that they have purchased their bike through bank

loans.

Purchase Type % of Respondents

Cash Purchase 94

Hire Purchase 06

6%

94%

Cash Purchase Hire Purchase

DECISION INFLUENCED BY

92
Maximum no. of the Respondents have taken decision to buy the bike on their own. After

that their friends and parents influenced them.

Influencer % of Respondents
Parents 16

Self 54

Friends 18

Relatives 08

Others 04

4%
8% BIKES
16%

18%

54%

PREVIOUSLY USED

93
More than 60% were using Hero MotoCorp'sCD100 bikes. They were followed

by Yamaha RX100 & very little have chosen other bikes.

Previously Used % of Respondents

CD100 62

Yamaha RX100 32

Others 06

6%
32%

62%

94
 RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing

a stiff competition from Pulsar & Fierro.

Bikes % rating by Respondents

Spleandor 38

Passion 08

Ambition 06

Pulsar 28

Fierro 14

Others 06

6%
14%
38%

95
28%
8%
6%

Splendor Passion Ambition Pulsar Fierro Others

 SURVEY REPORT

The Initial Quality Study of Two Wheelers in India

Something to Ponder over.

Which model of Motor Cycle would you recommend to your dear friend?

Does the basic reliability of two-wheelers measure up to the promises made by

the manufacturer…?

Where exactly is the quality lacking…?

Are buyers happy with the quality they get…?

What is the trend over the years…?

Would they buy the same model again or more importantly from the

manufacturers point of view… would they advise their friends to buy it…?

So let the people know just how the two-wheelers fared on the road…

WORKS :

96
It quantifies the initial quality of two wheelers in the form of the universally

accepted metric – Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performance

Links the quality findings with the customer viewpoint

97
 Prelude :

Each year manufacturers of two wheelers sells millions of vehicles in India with
an implicit promise…… that their products will have zero defects.

However, do their Products match up to their promises?

And how can we find out how they perform on the road?

PPM is an initial quality index for two wheelers. It is an index that represents the
level of quality in manufacturing and delivery operations for a given model of
two-wheeler.

PPM counts the number of problems faced by the user of a given model of two-
wheeler within the first three months of its usage. The addition of such problems
for 100 carefully chosen vehicles indicates a number called ‘problems per 100
vehicles’ or PP100V. e.g. if a particular model has initial quality index of ‘216
problems per 100 vehicles’ it means on an average each vehicle will have 2.16
problems.

The exercise started on 5th July, 2004. The fieldwork was completed on 5th
August, 2004.
Field investigators have spent more than 10,000 hours on the road, carefully
tracking down new owners of 14 popular bikes, to find out what problems they
have encountered in the first three months of usage.

Responses were collected from about 100 people living in town for each of the 24
models totaling to more than 2400 responses from areas.
Aided recall technique was used through a structured questionnaire based
interview to collect the data from the field. Only full-time field investigators of
METRIC were employed for data collection to maintain reliability of
responses.FINDINGS
&

98
 ANALYSIS FINDINGS & ANALYSIS

The Indian two wheeler industry today offers more than 70 models to a buyer.

And manufacturers are launching new models every day…… More than 20

models were launched in the last year.

Top this up with a variety of promises ranging from free gifts and financial

schemes to the attractive looking models and jingles in the advertisement.

In this whirlwind of speed and confusion maze, choosing the right pair of wheels

can be a trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a given

category of two wheeler. A lady doctor may decide to look only at gearless

scooters while a collegian with a rich father may only look at premium bikes.

What next……? Which bike should I buy? A bike with more power…… better

looks…… more reliability…… errrr!

Lesser problems per vehicle for a given model could be a good enough reason to

go for the model…..? Yes! But, within my selected category of premium bikes…

So which premium bike has lesser problems?

99
Do new launches have more problems than older ones? Naa…! Does PPM score

depend on who manufactured the vehicle…? See for yourself!

Manufacturer-wise PP100V scores in Survey

Sr.No. Vehicle PP100V

1 MOTOCORP 146

2 LML 165

3 Hero MotoCorp's 176

4 Kinetic 183

5 TVS 196

6 Bajaj 196

7 Yamaha 223

Executive bikes scored less problems than economy bikes…however simpler

machines like scooters have the fewest problems

This year we classified motorcycles by the market as premium, executive and

economy…...

Amongst the bikes, we found the number of problems were lowest in executive

100
bikes and highest in economy bikes….

Executive bikes (179 PP100V), then premium bikes (209 PP100V) and last were

economy bike (230 PP100V).

MAXIMUM PROBLEMS FOUND IN ENGINE AND TRANSMISSIONS:

46% of the problems reported by customers were problems like high fuel

consumption, starting trouble, erratic / rough gear shifting, noisy / loose drive

chain etc. All these problems are related to the engine & transmission. Another

12% of the problems were attributed to miscellaneous aspects like battery

discharged, stand hard to operate, etc.

Perhaps this is the most complex part of the two wheelers and hence poses

maximum challenge to the quality control guys in the manufacturing units.

ENGINE Trouble..

Splendour the largest selling executive bike from Hero MotoCorp'shas reported

the lowest number of problems with ENGINE (37 PP100V) closely followed by

the newly launched geared scooter Eterno (38 PP100V) from MOTOCORP.

Simplicity is the beauty

101
102
TRANSMISSION WOES :
Gearless scooters/scooterettes have lowest number of TRANSMISSION

problems., complains Who fulfilled the promised performance and how much…?

Sl No. Manufacturer % models above category average

1 MOTOCORP 100

2 LML 100

3 Hero MotoCorp's 67

4 Bajaj Auto 43

5 TVS 33

6 Yamaha 33

7 Kinetic 25

SCOPE AND COVERAGE :

Manufacturers and their Models:

Sr.No. Manufacturer List of models studied

* Bajaj
1 Boxer
2 Caliber 115
3 Pulsar 150 / 180
4 Spirit
*Hero MOTOCORP
f
5 Ambition
6 CD-100 / SS / Dawn / CD
Dawn

103
7 Splendor / Passion
*Kinetic Engineering

8 Boss

*LML
9 Freedom

*TVS

10 Max 100 R / DLX / DC

11 Victor

*Yamaha
12 Crux / Crux R
13 Enticer
14 Libero

Aggregates and features covered:

§ Overall Satisfaction

§ Overall quality

§ Instrument Panel / Dash Board

§ Locks

§ Control knobs / Switches

§ Handle

§ Lights

§ Body

104
§ Transmission

§ Engine

§ Wheels

§ Riding

It is clear from the report that the Hero MotoCorp's is facing cutthroat

competition; hence the company’s manager has to be fast and smart so as to

understand the customers needs. They have to come up with various new

techniques or schemes to be able to cater to different categories of people.

Market share of Hero MotoCorp'sis decreasing due to fierce completion by bajaj

Customers are becoming more wise day by day and they are now willing to know

all the in and out of the things happening around them. This has led to increased

customer awareness.

We can analyze that if the brand is reputed that doesn’t win the customers delight

unless it’s provided same value-added features or else we can say competitive

advantage.

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 For gaining a competitive advantage it has to continuously compare the

product and services with the competitors and find the weak area of the

rivals for gaining competitive advantage.

 Surveys revealed that awareness of Hero MotoCorp's is low among its

target segment for creativity awareness. The company has to take some

keen step for promotional activity.

 The company should regularly send the sales person who have good

communication skill to the customers so that they should be aware about

the product and services in market and know the quality of the services

offered by the company.

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RECOMMENDATIONS
&

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 SUGGESTIONS RECOMMENDATIONS & SUGGESTIONS

While Hero MotoCorp'shas strong foothold in the industry, the company should

look into the areas of weakness.

In this connection, It is suggested that the company can look into the following

areas:

 In order to expand its business it should introduce innovative schemes for

young generations, better financial schemes, etc.

 The company should expand its service centers.

 The must move towards the rural areas to expand its sale.

 New attractive models to be launched as per the requirement of youth

 Strategies to be formed to beat the competitor

 Scooter segment require some more attention MOTOCORP scooter can do

much better

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And focus on developing light scooters for girls.

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CONCLUSION

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 CONCLUSION

It is concluded that the market potential of Hero Motocorp's. The rational behind

this particular study is to find out the present market scenario of various brands &

to find out the corporate need and perception. It was a pleasurable experience to

conduct a research on behalf of Hero MotoCorp's pertaining to the study of the

Automobile Sector. To carry out this research a sample study was pursued where

the target was made to the people of Allahabad region. Various statistical and

analytical tools and techniques are applied to ascertain and depict the present

scenario.

Conclusion and there by recommendation has been arrived at by proper and

justified interpretation of the result derived from the above said analytical tools

and techniques.

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BIBLIOGRAPHY

112
 BIBLIOGRAPHY

BOOKS:

 Name of the book :- Marketing research

Author :- Dr. C.B.Mamoria

 Name of the book :- Marketing research

Author :- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

 Journals published by Hero MOTOCORP, Annual Report

 Auto India, Business World

INTERNET:

 www.heroMOTOCORP.com

 www.google.com

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QUESTIONNAIRE
1. Name __________________________________________________

2. Address _____________________________________________

_____________________________________________

3. Phone No. ___________________

Mobile No. ___________________

4. Age 18 – 22 years [ ] 23 – 27 years [ ]

28 – 32 years [ ] above 32 years[ ]

5. Do you have any bike in your house?

Yes [ ] No [ ]

6. If yes, Name and Company of the bike.

________________________________________________________.

7. If No, Do you have any plan to buy it in next 6 months?

Yes [ ] No [ ]

114
8. If Yes, Name and Company of the Bike.

________________________________________________________.

9. Which Bike does you like most?

________________________________________________________.

10.Rank the Motorbike manufacturing company.

1. Hero MOTOCORP [ ]

2. Yamaha [ ]

3. Bajaj [ ]

4. L.M.L. [ ]

11. Do you remember any advertisement of Hero MOTOCORP?

________________________________________________________.

12. What should the price range in your opinion?

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Splendor + ___________________ Sufficient [ ]
CD dawn ___________________ Sufficient

[ ]

Passion + ___________________ Sufficient

[ ]

CBZ ___________________ Sufficient [ ]

Karizma ___________________ Sufficient [ ]

13. Any new facilities or any improvement that you want.

________________________________________________________

____________________________________________________________

____________________________________________________.

14.Give remark to your old Bike Company.

Good [ ] Very Good

[ ]

Excellent [ ] Out standing

[ ]

Don’t have a Bike [ ]

116
15 Give remark to Hero MOTOCORP.

Good [ ] Very Good

[ ]

Excellent [ ] Out standing

[ ] Don’t have a Bike [ ]

117