INTRODUCTION

The Global market for two-wheeler has shown tremendous growth over the past
decade. In 2008 world sales to two-wheelers is 27million. Looked at more closely
however the geographic spread of this growth is very uneven, Asia has accounted for the
vast majority of the growth, sales in the entire region growing more than three folds over
the past decade.

China and India alone have accounted for over the half of the world’s two-
wheelers sales. Other large markets in the region are Japan, Indonesia, Vietnam and
Taiwan. Latin America is other important region and in sales there have more than
doubled over the pat 10years with Brazil accounting for the Lion’s share with a market of
around four lakh units. In line with the regions chequered economic performance over the
past decade, value growth has been Volatile.

So to understand the volatile nature of this sales growth it’s very important to
analyze the buyer responses under the main head consumer buyer behavior.

CONSUMER BUYER BEHAVIOUR: The buying behavior of final consumers the

individual and households who buy goods and services for personal consumption is
termed as consumer buyer behavior.

Consumers make many buying decisions everyday. Most large companies

research consumer-buying decisions in detail to answer question about.

 How they choose a product.

 Why they choose a brand.

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  How they choose a dealer.

 When they purchase.

 Which purchase options they choose.

 Why they prefer it.

 Why they go for Auto Finance option.

 And they aware of every rupee they pay.

Consumer buy what, where, how & why when all these can be seriously answered by a
company it has a great advantage over its competitions. In understanding it the marketers
need to assimilate the model of buyer behavior.

Market and other stimuli

Buyer’s Black Box Buyer Responses
Marketing Mix Others
Buyer Buyer Product Choice
Product Economic charac- Brand Choice
Price Technological Decision
Place Political
Dealer Choice
Promotion Cultural
teristics Purchase Timing
process Purchase Amount

Model of Buyer Behavior

Marketing Mix and other stimuli enter buyer’s black box where they are turned
into a set of observable buyer responses.
These buyer responses need to be addressed seriously and have to be analyzed by
a professional to bring out the true picture of Buyer’s expectations and reality.

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 OBJECTIVES OF THE STUDY

 To study the buyer responses on Brand choice.

 To study the buyer responses on Product choice.

 To study the buyer responses on Dealer choice.

 To study the buyer responses on Purchase Timing choice.

 To study the buyer responses on Purchase amount choice.

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 REVIEW OF LITERATURE

HERO HONDA is the Market Leader in the Motor Cycles segment

in the country with the market share of 43% during the year 2007-
2008. The company registered a record sale of 10 Million Motor Cycles
during 2007-2008 there by achieve a growth of nearly 35% over last
year. Hero Honda Motor cycles. Hero Honda is post a turnover Rs.2000
crores in the year. There are 4 million Hero Honda cycles. On the
Indian roads with the brand names of Hero Honda CD100, CD100ss,
Splendor, Passion, Ambition, CBZ, Hunk and Karizma.
Andhra Pradesh is one of the major markets for Hero Honda in
the country. The state has shown increasing tendency motor cycles
and Hero Honda enjoyed an impressive 53% of market with a 45%
growth in A.P there is a network of 29 dealers and 48 authorized
service centers and spare parts stockiest. The twin city alone has 5
dealers and 3 service centers. To supplement and to provide service
availability in far flung areas the company has mobile service
workshops that regularly visit various towns.
The company has constantly been contributing to the cause of
the environment, by meeting the strict emission norms of the Govt. an
added feature in the recent launch of a “Ride Safe” program that is
aimed at promoting the concept of good and safe riding among two
wheeler users in the country. Hero Honda has plans on board for
further initiatives towards fostering stronger relationship with its
customers.
Hero Honda has plans of introducing new models in the future
that meets the changing user preferences and in line with global
trends. The company is well equipped to meet the challenges and is
riding in to the new millennium on top gear.

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 NEED FOR THE STUDY

The project study “ BUYERS RESPONSE OF HERO HONDA MOTORS”

provides an insight into the different parameters of buyer decisions
that make people to purchase, thereby providing a clear picture to the
manufacturer and the dealer of Hero Honda Motors the way to attract
and retain the customer for the survival and growth.

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 LIMITATIONS OF THE STUDY

 A constraint of time and resources has limited the scope of the

study.

 The survey being conducted in the Twin cities of Hyderabad and

Secunderabad has limited the scope of study.

 Since some of the respondents felt that certain questions were

personal there are changes for bias in certain cases.

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 RESEARCH METHODOLOGY

1. INTRODUCTION

The effectiveness of any project depends to a large extent on

the methodology adopted. However inspire of the increase in the
tools in conducting market research programmers it is quite difficult
to construct a project without a flaw.

The research was descriptive in nature. Descriptive Research

surveys and fact finding enquires. The major purpose of research in
description of the state of affairs as it exited. The methods of
research utilized are survey methods.

1. RESEARCH DESIGN

Research Design was adopted by the research or for the

purpose of collecting and analysis of data in manner that aimed to
combine relevant data along with the economic infrastructure and
time in mind. It was the conceptual structure within which research,
collected, measured and analyzed.

The research study was conducted over a period of 7

weeks.

A. Construction of Questionnaire -1 Week

B. Market Survey -3 Weeks

C. Analysis and Interpretation -2 Weeks

D. Report Writing -1 Week

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 2. CONSTRUCTION OF RESEARCH INSTRUMENT

The research Instruments was a structured questionnaire

which was meant to assess customers, dealers and the local
mechanics. About a total of 100 questions segregated into 3
different questionnaires and administered.

4. DATA COLLECTION METHOD

The method followed was face-to-face calls. The

questionnaire was administered by means of personal interviews.

5. PILOT STUDY

Few modifications were made after studying the completed

questionnaire and after that a final questionnaire was carried out.

6. FINALISATION OF RESEARCH INSTRUMENT

The final questionnaire was prepared after the study. The

research instrument is actually disguised structured questionnaire.
The few changes made in the given below.

 Specific questionnaire, where the chance of getting bias from

the respondents was changed to general questionnaire.

 Sequence of question made properly.

 Questions were made simpler.

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7. SAMPLING UNIT/SIZE/TECHNIQUES

Sampling unit consists of the customers in the Hyderabad

city, household of middle, higher middle class and higher income
group of people in Hyderabad city. Care was also taken to take
into consideration the different occupational and educational
criterion of the sample.

A dealer network study was also conducted to find out the

factors influencing dealer network in promoting models.

About 25 local mechanics in Hyderabad were administered

with questionnaires to find out customer satisfaction of the Hero
Honda customers and the problems faced by them.

Sample size of consumers above 100 was done as lengthy

questionnaire and also questions took a lot of time to answer.

8. MARKET SURVEY

The market survey was done in all major areas where the
middle & higher
income group people are located in Hyderabad city.

9. INTERPRETATION OF DATA

The collected data was first put in a tabulated from for

each question subsequent responses. After tabulation, averages
and percentages were determined, this helped in interpreting data.

9
 INDUSTRY PROFILE

The DYNAMICS of the motorized two-wheeler industry in India

make fascinating reading. From a semi luxury product for the urban
middle class in the eighties and earlier, the two-wheeler has now
become not only the favorite mode of personal transport but also
coveted personal (household durable) possession among nearly all
consumer classes, expect perhaps the most affluent. Leading this
emergent boom has been the stylish, fuel-efficient and study four-
stroke motorcycle that seems to be equally at home on highways and
rural byways.

The trend however has been somewhat similar in all the

emerging markets of the world, thanks to the growing economically
active and ambitious class, the relative youth of the population, the
lower cost of the two-wheeler compared to cars in terms of numbers of
months wages required to pay for it as well as its inherent
attractiveness, especially to Young male. The world’s largest market is
china followed by India. These countries are also hosts to world-class
plants. Along with the obviously powerful and influential Japanese
manufacturers and brand names such as Honda, Suzuki, Yamaha and
so on, we also se the advent of national brands like Bajaj and TVS
which are also likely to go global setting up marketing and
manufacturing arrangements in the other populous markets of Asia.
The game is going to hot up by the year and will remain extremely
price-competitive while remaining performance and reputation driven.

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ORIGIN & GROWTH OF INDIAN INDUSTRY:

The Indian two-wheeler industry made a small beginning in the

early Fifties when Automobile Products of India (API) started
manufacturing scooters in the country. Until 1958, API and Enfield
(motorcycles) were the sole producers. In 1960, Bajaj Auto that had
been trading in imported Vespa scooter and two-wheelers set up a
plant to manufacture them in technical collaboration with Piaggio of
Italy.

The industry had a smooth ride up to the Eighties, when the

Government prohibited new entries and strictly controlled capacity
expansion. Under the regulated regime, foreign companies were not
allowed to operate in India. It was a complete sellers market.

Today with annual sales of 4.3 million units, the Indian two-
wheeler market is the second largest in the world after China (annual
sales of 10 million). The sector is divided into five major product
classifications: mopeds, motorcycles, scooters, step thru and Ungeared
scooters. Two-wheelers were one of the best performing industry
segments in an otherwise sluggish economy in 2006-07. This
unprecedented growth grew at a robust 42 percent 2006-07 and
represented nearly 66 percent of total two-wheelers sales, against 25
percent in 1998-99.

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Drivers of Growth:

A host of factors are at play driving the industry sales up. Two of them were
customer’s preferences and new product launches. Customer preferences started changing
the early 1990’s as the winds of liberalization swept the country several manufacturers
tasted success on account of their ability to make new products, identify target markets
segments, and create products for them. The evolution of ungeared scooters, launch of
premium scooter models, Japanese motorcycles, all found favor with customers and
translated into growth from manufacturers. The success can be attributed to the effect of a
large pent-up demand for new products, as the Indian consumer had few choices earlier.
Launches of new products of high and consistent quality work a key to growth in 2006-07.
Easy finance options: Only 35-45 percent two-wheeler sales are probably financed through
such schemes now, this proportion has moved up from 15 percent three years ago.

Shorter replacement cycles:

The estimated two-wheeler population in India is about 40

million. The normal life of a two-wheeler is nearly 15years. At least 7
percent of the existing population would be above this limit. With
increased consumer spending, spurred by consumer finance schemes,
and a dramatic increase in the number of product variants, the
replacement cycle is becoming shorter.

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Absence of good public transportation:

Public transportation continues to be difficult in India with most

local transport authorities running into lose despite increasing fares.
Two-wheelers offer a convenient alternative.

Affordable mobility:

The cost of a two-wheeler represents about 4-5 months salary of

the average middle class individual, the cheapest passenger car
represents nearly years salary. Besides the fuel efficiency of two-
wheelers on average is 4 times that of a car.

However the Emission norm compliance and rationalization of

sales tax increased the cost to the consumer by 12-15 percent in 2005-
06, triggering stagnation in two-wheeler sales. The Government has
since cut down the excise duty from 24 percent to 16 percent in 2005-
06, rolling back 50 percent of the cost increase.

Product differentiation and market segmentation was the mantra

for growth in the early Nineties. Hero Honda was the first to segment
the market and offer differentiated products. Fuel efficiency and
reliability were its other strengths for success. Now that the Indian
consumer has tasted more diverse products, his appetite for newer
fare has been whetted. Customers, some leading two-wheeler
manufacturers found it in surveys, looked at five key criteria: Fuel
efficiency, reliability, price, style, and power.

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 The higher ranking given to fuel efficiency than power explains
the increasing shift towards four stroke vehicles in the motorcycle
category. Four-stroke vehicles provide far greater fuel efficiency but
less power than two-stroke. The aforementioned fire parameters also
show that there remains little scope for further market segmentation
and new product introduction. Upgrades incorporating style are
expected to drive growth. As long as established brands are able to
offer that, customers do not go elsewhere.
This is mainly because reliability is what they value the most after
price and fuel efficiency.

Futuristic view of Market Share:

The relative importance of motorcycles has risen consistently

over the past few years. By 2008-09, it is estimated that motorcycles
would account for 80 percent of Indian two-wheeler sales by volume.
They are by far the fastest growing segment, with scooter and moped
volumes seeing steady declines. While scooter sales have
predominantly been in the urban areas, motorcycles sales are split
50:50 among urban and semi / rural areas.

Futuristic Demographic View:

The demography of the Indian population is skewed in favor of

the younger generation, which favors motorcycles to scooters. The
younger generation, divided in the age group between 15 to 34 years,
comprised 33.7 percent of the population in 1998, and was expected to
increase to 35.8 percent by 2003 and further to 39.8 percent by 2008.

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 The office-going middle class (typically in the 25-59 range),
which prefers motorcycles on account of the fuel economy they offer,
formed 21.9 percent of the population in 1998, and was expected to
increase to 24.5 percent by 2003 and further 26.2 percent by 2008.
Since the increasing share of these groups is expected to continue,
motorcycles sales will remain buoyant in this time frame.

The runaway growth in motorcycles started in 1997-98 and

gathered momentum in 1998-99. When the schedule of adherence to
emission norms was finalized. It was decided, for instance, that all two-
wheelers sold after April 2000 would have to company with Euro-II
emission norms. Over the same period domestic diesel prices rose 70
percent, which turns the attention of the two-wheeler buyer on fuel
efficiency. Fuel efficiency coupled with changing lifestyle and income
profiles led to a sharp surge in motorcycle volumes at the expense of
scooters and mopeds.
Post emission norm compliance shift on customer preference
from two-stroke motorcycles and scooters to four-stroke have become
the norm. Since a mature four-stroke scooter market does not exist,
four-stroke motorcycles will be natural choice.

Cheap is a china strong Indian fundamental:

Around this time last year, China was being touted as the biggest
threat to the Indian two-wheeler industry, as Chinese producers had
gained market share in various Southeast Asian countries by dumping
products at low cost. However, Indian two-wheeler companies have
shown remarkable resilience.

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Their motorcycles are far superior in quality to most Chinese makes,
which rely on ancillaries that role out products of inconsistent quality.

Besides, import duties of 45 percent on Cub’s and 65 percent on

finished products have little scope for Chinese players to pose a
serious threat to Indian manufacturers. Also cost cutting has allowed
Indian producers to introduce new models at lower price points.

Indian companies have barely made s dent in the export market;

only three percent of total sales volumes come from overseas markets.
However, the potential remains immense, especially for companies
that have developed world-class products and wrung out significant
cost advantages. In fact, China has been identified as an export
opportunity as Indian motorcycles could be attractively priced in the
premium segment and gains some market share from Japanese JV’s
operating in China.
Having in-house R&D will be vital for companies that aim for a
significant share in the export market. The recent trend in
manufacturing is that the core technology is addressed by in-house
expertise and other processes are sub-contracted for speed in product
development.

Indian companies, especially those that they have exited

Japanese JV’s have started spending more on R&D. in the coming
years, ability to cut cost through Indigenisation will determine the level
of competence and provide a strong foothold in the export market for
companies that aspire to be global players.

16
 Although India is the second largest two-wheeler in the world
after China penetration levels are low at 38 per thousand people,
compared to Indonesia (75), Thailand (150) and Malaysia (220). This
present ample scope for the industry to grow.

TWO-WHEELER PENETRATION

FY 1997 2005 E 2009 E

Total Households 160.6 180.7 199.2

Middle to Upper 29.6 49.2 80.7

Class (Min)

18.4% 27.2% 40.5%

2-Wheeler 22.5 39.1 64.0

population

Penetration 76% 79% 79%

As per NCAER estimates, the number of households that can

afford two-wheelers will rise by 10.4 per cent a year to 80.7 million by
2009. Even if penetration levels just remained the same, the two-
wheeler population could grow by 10.4 per cent and two-wheeler sales
could increase by 13 per cent a year – assuming 25 per cent
replacement demand.

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 On a base of 38.6 million two-wheelers on road, replacement
demand would be a key growth driver. Additionally, with preference for
4-stroke technology, replacement demand from 2-stroke (an estimated
26.5 million vehicles) and mopeds will gain greater momentum and
drive industry growth.
In addition, increased consumer financing will continue to spur
sales. Consumer financing could in turn lead to reduction in the life
cycle of a two-wheeler, raising the replacement demand.

Given long term factors such as the absence of good public

transportation, affordability (price cuts, rising incomes, easy financing)
and replacement demand (two-stroke with four-stroke) the two-
wheeler industry seems to be poised for robust growth in the coming
years.

Motorcycles will however remain the key drivers of growth, until the
manufacturers create an even more customer friendly category.

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 The Legend of Hero Honda

What started out as a joint Venture between Hero Group, the

world’s largest bicycle manufacturers and the Honda Motor Company
of Japan, has today become world’s single largest two-wheeler
company. Coming into existence on January 19, 1984, Hero Honda
Limited gave India nothing less than a revolution on two-wheeler.

The joint venture between India's Hero Group and Honda Motor
Company, Japan has not only created the world's single largest two
wheeler company but also one of the most successful joint ventures
worldwide.

During the 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the
roads. The company introduced new generation motorcycles that set
industry benchmarks for fuel thrift and low emission. A legendary 'Fill
it - Shut it - Forget it' campaign captured the imagination of
commuters across India, and Hero Honda sold millions of bikes purely
on the commitment of increased mileage.

Over 19 million Hero Honda two wheelers tread Indian roads

today. These are almost as many as the number of people in Finland,
Ireland and Sweden put together!

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 Hero Honda has consistently grown at double digits since
inception; and today, every second motorcycle sold in the country is a
Hero Honda. Every 30 seconds, someone in India buys Hero Honda's
top -selling motorcycle - Splendor. This festive season, the company
sold half a million two wheelers in a single month-a feat unparalleled in
global automotive history.

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

1990.91 43000 units

1993.94 96200 units
2002.3 560600 units
2003.4 771210 units
2004.5 1129555 units
2005.6 1625195 units
2006.7 2977535 units
2007-08 3545867 units
Consumer satisfaction, a high quality product, the strength of
Honda technology and the Hero group’s dynamism have helped HHML
scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lall Munjal, the Chairman, Hero

Honda Motors succinctly points out, "We pioneered India 's motorcyc
industry, and it's our responsibility now to take the industry to
the next level. We'll do all it takes to reach there”.

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 SALES PERFORMANCE

The company clocked 7,56,633 units of two wheeler sales during

the period. Hero Honda's cumulative sales for the period April ‘08 –
September ‘08 stood at 15,59,486 units.

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

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

Hero Honda Motors Ltd. Year 2007-08 Sales Growth:

Hero Honda Motor Ltd., the country’s largest two-wheeler

maker, finished the year 2007-08 with total motorcycle sales of
3545867 units; a growth of 28% over last year’s sale of 1625195
motorcycles.

For the month of August 2007, the company posted sales of

240875 motorcycles compared to 215076 in August 2006. As reported
earlier, the economic slowdown, as a consequent of drought in certain
parts of the country, and low agricultural production, affected the
demand for a whole lot of durables including motorcycles. Lack of
clarity on VAT issues also impacted sales.

21
PRODUCT PROFILE

CBZ - XTREME

FEATURES

CBZ – XTREME

Presenting the perfect blend of power, style and passion….

Transient Power Fuel Control (TPFC) system: For quick acceleration,

providing a sudden surge when required. A feature, which is used in
some of the most advanced cars.

22
Tachometer and Trip meter: Tachometer displays the engine
rotation speed. And a first time feature the Trip meter measures the
distance traveled in a trip.

Dynamic vibration dampers: The dampers incorporated in the

handlebar, ensure that your ride is smooth and simple.
Air injection system: Injects fresh air into the exhaust port, to meet
the emission norms.

Zero Crank Case Evaporative Emission: An advanced pollution

control feature, which is the first of its kind in India. Keeping alive the
Hero Honda tradition of environment friendly bikes.

- Disc brakes on front wheel as standard fitment.

- Comfortable step seat.

- New Age asymmetric Instrument panel in dual tone finish with

tachometer & Trip meter.

- Multi-reflector Headlight with separate pilot lamp on top (2-in-1

design).

- An attractive visor with tinted windshield.

- The Adjustable Rear-Shock absorbers have been provided for

extra comfort, and can be easily adjusted into five positions.

SPECIFICATIONS:-

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CBZ - XTREME
Engine 4-stroke single cylinder, Air cooled, OHC

Displacement 149.2cc

Clutch Type Multi plate wet

Gear box/Transmission 5-speed constant mesh

Ignition AMI- Advanced Microprocessor Ignition System

Starting Self Start/ Kick Start

Suspension (Front) Telescopic hydraulic Shock absorbers

Suspension (Rear) Swing arm with adjustable Shock

absorbers

Wheel Base 1325mm

Ground Clearance 146mm

Brakes
Front Dia 240mm disc
Rear(Drum) 130mm
Wheel & Types
Rim Size Front 18*1.85 Alloy Wheel
Rear 18*2.15 Alloy Wheel
Tyre Size Front 2.75*18-42p
Rear 100/90*18-56p
Kerb Weight 141kg (Kick) / 143kg (Self)

Fuel Tank Capacity 12.3 ltr (1.5 ltr reserve)

24
Dimensions
Length 2080mm
Width 765mm
Height 1145mm

WARRANTY: Vehicle/Emission- 3 yrs or 40,000 kms from the date of

purchase, which ever is earlier.Passion Plus

DESIGN
• Contoured Fuel Tank

• Multi- reflector
Trapezoidal
Headlight and
Tail- lamp
• Streamlined side

Cowl

25
SAFETY
• Position Lamp

• Side Reflector

• Wider Wheel Base

• Wide & Comfortable
Seat

COMFORT
• Adjustable Rear
Cushion
• Broad Rear Tyre

• Double Cradle
Tubular frame

CONVENIENCE
• Large Storage Space
With Locking Facility

• Helmet Holder

• Lockable Seat

26
SPECIFICATIONS:-

PASSION PLUS

Engine 4- stroke, single cylinder air – cooled

OHC
Displacement 97.2cc
Maximum Power 7.5 Ps at 8000rpm
Maximum Torque 7.95N - m@5000rpm
Bore X Stroke 50.00*49.50mm
Compression 9.0:1
Ratio
Starting Kick Start
Idle Speed 1400rpm
Frame Tubular double cradle
Suspension Front Telescopic Hydraulic fork
Rear Swing arm with 5 step adjustable
hydraulic damper.
Tyre Size Front 2.75 x 18 x 4 PR
Rear 3.00 x 18 – 4/6 PR
Final Drive Roller Chain
Battery 12 V – 205 Ah
Ignition Electronic CDI
Starting Kick Start
Wheelbase 1235 mm
Ground Clearance 159 mm
Dimensions Length 1980 mm
Width 720 mm
Height 1060 mm
Kerb Weight 116 kgs
Fuel Tank 12.8 liters (Reserve 1.1 liter)
Capacity
Battery 12 V – 205 Ah

27
Super SPLENDOR

Features

Super “Fuel Efficiency”: New Generation “Quantum core Engine”

which delivers best fuel effiency from Hero Honda Family.

Super “Performance”:

• New 125cc engine with an output of 9bhp (6.7 kw)

• Power delivery is better in the riding zone (0 to 60 Kmph)

than any motorcycles.

28
Super “Riding Comfort”:

• A low noise, low vibration engine which results in very little

fatigue.

• Comfortable seat making riding a pleasure for both rider

and the pillion rider.

Super “Convenience”:

• Trip-meter to measure distance traveled on a trip.

Provision to change the cam chain externally without
opening the engine.

• Large Utility Box.

Super “Styling”: Stylish looking broad muffler.

• Dazzling body graphics / new pattern stripes.

• Newly designed headlight and translucent visor.

• Multi reflector headlight and taillight.

Super “Reliability & Safety”:

• Breakthrough offering of 3yrs / 40,000 kms warranty.

• Pass Switch & push control indicator switch.

• Muffler with heat shield for protection.

29
SPECIFICATIONS:-

Super Splendor

Engine 4- stroke, single cylinder air – cooled

OHC
Displacement 97.2cc
Maximum Power 7.5 Ps at 8000rpm
Maximum Torque 7.95N - m@5000rpm
Bore X Stroke 50.00*49.50mm
Compression 9.0:1
Ratio
Starting Kick Start
Idle Speed 1400rpm
Frame Tubular double cradle
Suspension Front Telescopic Hydraulic fork
Rear Spring loaded hydraulic type with both
side action.
Tyre Size Front 2.75 x 18 x 4 PR
Rear 2.75 x 18 – 6 PR
Final Drive Roller Chain
Battery 12 V – 205 Ah
Ignition Electronic
Starting Kick Start
Wheelbase 1230 mm
Ground Clearance 159 mm
Dimensions Length 1970 mm
Width 720 mm
Height 1040 mm
Kerb Weight 109 kgs
Fuel Tank 10.5 liters (Reserve 1.4 liter)
Capacity
Clutch Type Manual

30
 HUNK
BECAUSE
=MUSCLES=
MATTER

HUNK

Specifications:

Engine 4-stroke single cylinder, Air cooled, OHC

Displacement 149.2cc

Gear box/Transmission 5-speed constant mesh

Ignition AMI- Advanced Microprocessor Ignition System

Idle Speed 1400rpm

Starting Self Start

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Suspension (Front) Telescopic hydraulic Shock absorbers
Suspension (Rear) Swing arm with 5 step adjustable GRS
(Gas Reservoir Suspension)
Wheel Base 1325mm

Ground Clearance 145mm

Wheel & Types

Rim Size Front 18*1.85 Alloy Wheel
Rear 18*1.85 Alloy Wheel
Tyre Size Front 2.75*18-42p
Rear 100/90*18-56p
Kerb Weight 141kg (Kick) / 143kg (Self)

Fuel Tank Capacity 12.4 ltrs (Min) (2.2 ltrs (Usable Reserve))

Dimensions
Length 2080mm
Width 765mm
Height 1095mm
Head Lamp 12 V – 35 W
Tail Lamp 12 V – 5 W
Turn Signal Lamp 12 V – 10 W x 4nos
Battery 12 V – 7 Ah

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KARIZMA
Always Game

KARIZMA
Always Game

Features:

1) Dials in Bright Yellow for clear Day time Visibility.

2) Cool key sporting the mark of the race.

3) Rear Shock Absorbers… with a dash of Red.

4) Sleek New Muffler cover with a Classy Chrome finish.

33
Specifications:

Engine 4-stroke single cylinder, Air cooled, OHC

Displacement 223cc
Maximum Power 12.68 KW at 7000Rpm
Maximum Speed 125 Kmph
Clutch Multi Plate Wet
Ignition AMI- Advanced Microprocessor Ignition System
Brakes
Front Dia 276mm disc
Rear (Drum) 130mm (Internal Expanding Shoe Type)
Wheel & Types
Rim Size Front 18*1.85 Die Alloy Wheels
Rear 18*1.85 Die Alloy Wheels
Tyre Size Front 2.75*18-42p
Rear 100/90*18-56p
Electrical
Battery 12 V – 7 Ah
Alternator 188W
Head Lamp 35 W / 35 W – Halogen Bulb
Number Plate 5W
Fuse 20 Amps, 15 Amps, and 7.5 Amps
Suspension (Front) Telescopic hydraulic Shock absorbers
Suspension (Rear) Swing arm with 5 step adjustable GRS
(Gas Reservoir Suspension)
Kerb Weight 141kg (Kick) / 143kg (Self)
Fuel Tank Capacity 15 ltrs (Min) (2 ltrs (Usable Reserve))
Dimensions:Length: 2125Width:
755mmHeight: 1160mm
Wheel Base: 1325mm
Ground Clearance: 145mm

34
 COMPANY PROFILE

Hero Honda is the Market Leader in the Motor Cycles

segment in the country with the market share of 43% during the year
2007-2008. The company registered a record sale of 10 Million Motor
Cycles during 2007-2008 there by achieve a growth of nearly 35% over
last year. Hero Honda Motor cycles. Hero Honda is post a turnover
Rs.2000 crores in the year. There are 4 million Hero Honda cycles. On
the Indian roads with the brand names of Hero Honda CD100,
CD100ss, Splendor, Passion, Ambition, CBZ, Hunk and Karizma.

Andhra Pradesh is one of the major markets for Hero Honda in

the country. The state has shown increasing tendency motor cycles
and Hero Honda enjoyed an impressive 53% of market with a 45%
growth in A.P there is a network of 29 dealers and 48 authorized
service centers and spare parts stockiest. The twin city alone has 5
dealers and 3 service centers. To supplement and to provide service
availability in far flung areas the company has mobile service
workshops that regularly visit various towns.

The company has constantly been contributing to the cause of

the environment, by meeting the strict emission norms of the Govt. an
added feature in the recent launch of a “Ride Safe” program that is
aimed at promoting the concept of good and safe riding among two
wheeler users in the country.

35
Hero Honda has plans on board for further initiatives towards fostering
stronger relationship with its customers. On 23rd all over Andhra
Pradesh Dealer points they have launched customer benefit program
on the name of passport. It is one of the unique programs in the
country.

Hero Honda has plans of introducing new models in the future

that meets the changing user preferences and in line with global
trends. The company is well equipped to meet the challenges and is
riding in to the new millennium on top gear. Recently company has
launched a new motorcycle on the name of Karizma. The model is well
accepted by customers all over the country.

For a step-through coming into a dealing two wheeler market,

Honda Motorcycle and Scooter India’s four stroke machines could not
have been christened better. It’s called ACTIVA, and symbolizes
Honda’s desire to kick-start a sliding segment. Even its rivals concede
that the 1765 mm long, 1235 mm wide ACTIVA is some to watch. The
ACTIVA will come with two variants, self-start and kick-start, and the
other, just kick-start. Both are likely to provide 50KM/ltr. Fortunately for
Honda, while the geared scooters market declined by 35% between
April & Dec 2007; Sale of gear less scooters (Kinetic, Scotty) grew at 15
percent.

36
 LITERATURE

B ra n d & P a ra m e te rs

60 S t y le
50 M ile a g e
40 R e s a le V a lu e
30 P ic k u p
20 M a in t e n a n c e
Parameters

10
0
TVS

LML
Bajaj
Honda

Kinetic
Hero

B ra n d
INTERPRETATIONS

The following are the conclusions that can be drawn from the above
data..

 The respondents have rated the Hero Honda Motors as the

most preferred choice in terms of STYLE with 35% of them
voting for it.
 The respondents have rated the Hero Honda Motors as the
most preferred choice in terms of MILEAGE with 42% of them
voting for it.
 The respondents have rated the Hero Honda Motors as the
most preferred choice in terms of RESALE VALUE with 48% of
them voting for it.
 The respondents have rated the TVS as the most preferred
choice in terms of PICKUP with 35% of them voting for it.
 The respondents have rated the Bajaj as the most preferred
choice in terms of MAINTENANCE with 38% of them voting for
it.

37
 DATA ANALYSIS ANDINTERPRETATION

The respondent’s product choice is judged on the following parameters

 Income,

 Age,

 Education,

 Life Expectancy,

 Style,

 Mileage,

 Pickup,

 Resale value and

 Maintenance

38
INTERPRETATIONS ON THE INCOME, AGE, EDUCATION, LIFE
EXPECTANCY

The 100 respondents were asked to scale the performance of various

brands on the basis of the 4 parameters i.e.,
1. Income,
2. Age,
3. Education and
4. Life Expectancy

Parameters Income Age Education Life Expectancy

& Product
Splendor 61 61 61 69
Passion 13 13 28 20
CBZ 5 4 7 4
Karizma 4 7 4 3
Hunk 4 4 4 4

39
 70
60
50
S p le n d o r
40
P a s s io n
30 CBZ
20 K a r iz m a
10 Hunk
0
In c o m e A g e E d u c a t ioLnife
Expect

INTERPRETATIONS

The following are the conclusions that can be drawn from the above
data..

 The respondents have rated the Splendor as the most preferred

choice in terms of INCOME with 61% of them voting for it.
 The respondents have rated the Splendor as the most preferred
choice in terms of AGE with 61% of them voting for it.
 The respondents have rated the Splendor as the most preferred
choice in terms of EDUCATION with 61% of them voting for it.

40
  The respondents have rated the Splendor as the most preferred
choice in terms of LIFE EXPECTANCY with 69% of them voting
for it.

INTERPRETATIONS ON THE STYLE, MILEAGE, PICKUP, RESALE

VALUE & MAINTENANCE

The 100 respondents were asked to scale the performance of various

brands on the basis of the 5 parameters i.e;

 Style,
 Mileage,
 Resale value,
 Pickup and
 Maintenance.

Parameter Style Mileage Pickup Resale Maintenanc

s& value e
Product
Splendor 33 31 13 28 35
Passion 17 28 12 11 13
CBZ 43 3 41 15 4
Karizma 35 8 46 26 1
Hunk 4 3 32 7 8

41
 50
45
40
35
Splendor
30
Passion
25
CBZ
20
Karizma
15
Hunk
10
5
0
Sty Mil Pick Res Main

INTERPRETATIONS

The following are the conclusions that can be drawn from the above
data..

 The respondents have rated the CBZ as the most preferred

choice in terms of STYLE with 43% of them voting for it.
 The respondents have rated the Passion as the most preferred
choice in terms of MILEAGE with 38% of them voting for it.
 The respondents have rated the Splendor as the most preferred
choice in terms of RESALE VALUE with 41% of them voting for it.
 The respondents have rated the Karizma / CBZ as the most
preferred choice in terms of PICKUP with 38% of them voting for
it.
 The respondents have rated the Splendor as the most preferred
choice in terms of MAINTENANCE with 43% of them voting for it.

42
 DEALER CHOICE INTERPRETATIONS

The Dealer preference is made on the following basis,

 Advertisement (Ads),

 Goodwill (Gd),

 Fair dealings (Fd),

 Customer Relationship Management (CRM),

 Service Center Timings (SCT),

 Physical facilities (Pf),

 Store location (Sl),

 Product location and decoration (Pld) and

 Electronic kiosks (Ek).

Parameters Ads Gd Fd CRM SCT Pf Sl Pld Ek

Observation 57 33 49 75 30 24 17 17 13
s

43
 Ads
Gd
Fd
CRM
SCT
Pf
SI
P ld
Ek

INTER PRETATION

Here the respondents are asked to choose three criteria out of the
above 9 criteria’s in choosing their dealers, so that the scale is 300
points.
Respondents are asked to choose three criteria out of the above
9 criteria’s in choosing their dealers, so the scale is 300 points.
Respondents in making a dealer choice give utmost importance to the
CRM, as are visible from the graph. CRM is ranked No. 1 for the buyers
to decide the dealer as they have marked 75 points to it, followed by
the advertisements with 75 points for it allowed 57 points and equally
people keep in mind the criteria such as the goodwill and fair dealings
as is observed in the graph.

44
 PURCHASE AMOUNT ANALYSIS
SALES ON THE BASIS OF FINANCER

FINANCE CBL ICICI GE ALFL HDFC OTHERS

R
SALES 442 946 234 210 95 711

CBL
IC IC I
GE
ALFL
HDFC
O THERS

INTERPRETATIONS

 From the above it is observed that the customers prefer to obtain

finance from ICICI.

 CBL is also preferred next to ICICI.

 It is followed by GE and then by ALFL and HDFC.

45
 PURCHASE TIMING INTERPRETATIONS

To analyze the timing of purchasing behavior the monthly sales of April

2006-March 2007 is taken into consideration.

Month Sales

April 831

May 1020

June 805

July 762

August 729

September 603

October 802

November 757

December 796

January 674

February 755

March 721

46
1200 A p r il
May
1000 June
J u ly
800
August
600 S e p te m b e r
O c to b e r
400 Novem ber
200 Decem ber
J a n u a ry
0 F e b ru a ry
S a le s M a rc h

47
 INTERPRETATION

It is observed from the above graph that the sales during the months
April and March are the highest. The month of April and May is a
festive season i.e., the Telugu New year Ugadi falls during these
months.

In the month of October also the sales seems to be high, this may be
because of festival i.e., Dussera & Dewali which is considered as one of
the major festivals in the Hindu community. The slacks period are the
months of September and January was the sales are least during these
two months.

48
 C

To test the hypothesis t

reducing dissatisfaction, comp
RESPONSE OF HERO HOND
Responses Strongly

No. of workers 30

Ho: Training has not heighte

49
Ei = 100 / 5

= 20

Calculated value of χ 2
= 20.9

Degrees of freedom = n-1

= 5 -1= 4.

The value of χ 2
at 5 level of significance at 4 degrees of freedom is 9.488

The calculated value of χ 2 is greater than the table value.

It is significant. Hence we reject the null Hypothesis Ho.

Conclusion:

We conclude that the training has heightened the morale of employees by

reducing dissatisfaction, complaints, grievances and absenteeism in” BUYERS
RESPONSE OF HERO HONDA MOTOR CYCLES” Limited.

50
 Chi square Test

To test the hypothesis that the training programme has improved the quality of work life.

Responses Strongly Agree Agree Average Disagree Strongly Disagree

No. of Workers 32 31 6 22 9

Ho: The training programme has not improved the quality of work life in” BUYERS

RESPONSE OF HERO HONDA MOTOR CYCLES” Limited

51
Observed Expected
Frequency Frequencies (Oi – (Oi – Ei)2 ( Oi – Ei)2 / Ei

(Oi) (Ei) Ei)

32 20 12 144 7.2

31 20 11 121 6.05

6 20 -14 196 9.8

22 20 2 4 0.2

9 20 -11 121 6.05

29.3

Ei = 100 / 5

= 20

Calculated value of χ 2 = 29.3

Degrees of freedom =n–1

=5–1

=4

The value of χ 2 at 5 level of significance at 4 degrees of freedom in 9.488

The calculated values of χ 2 is greater than the table value.

It is significant. Hence we reject the null Hypothesis Ho

52
Conclusion:

We conclude that the training programme has improved the BUYERS

RESPONSE OF HERO HONDA MOTORS CYCLS’ LIMITED.”

FINDINGS

 The study has revealed that customers while choosing a

particular brand give utmost importance to STYLE, MILEAGE and
PERFORMANCE and as per the study the Hero Honda Motors is
the leader in this aspect.

 The study has revealed that customers while choosing a

particular product give utmost importance to Income, Age,

53
 Education, Life expectancy, Style, Mileage, Pickup, Resale value
and Maintenance and as per the study the Hero Honda Motors is
the leader in this aspect.

 The study has revealed that customers while choosing a

particular dealer give utmost importance to CRM and then to
others and as per the study the SRI LAKSHMI MOTORS is the
preferred choice of the respondents.

 The study has revealed that customers while choosing a

particular timing give utmost importance to festivals.

 The study has revealed that customers while choosing a

particular financier give utmost importance to the easy & quick
processing and interest rates which the ICICI provides to its
valuable customers and thus it is the leading financier in the
finance of two wheelers.

SUGGESTIONS

“Value Marketing” has become the watchword in this

economic down turn. Rather than offering high quality at a high price,
or lesser quality at low prices, marketers should offer financially
cautious buyers greater value-just the right combination of product
quality and good service at a fair price.

54
 In Indian conditions of economic down turn marketers should
pay attention to “income distribution” as well as average income.
Income distribution is well screwed. At the top are the “upper class”
consumers, whose spending patterns not, affected by current
economic events and who are major markets for “CBZ, KARIZMA and
PASSION”. There is a comfortable “middle class” that somewhat
careful about its spending but still can afford the good life some of the
time. Finally, the “upper class” (persons on welfare and many retires)
counts their pennies when making a purchase.

New schemes should be introduced for the students, as there

is much untapped market potential in students.

Guarantee: Registering complaints can boost consumer

loyalty, and this loyalty is increased dramatically when consumer
complaints are addressed. A consumer who complains and satisfied
will tell eight people; but if the experience is negative twice as many
people will hold it.

The company is using current profit maximization as their

pricing goal. The company wants to achieve product quality leadership;
this normally calls for charging a high price to cover high performance
quality and high costs of research and development.

55
 HERO HONDA MOTORS is doing extremely well in maintaining
its lead position in motor cycle market by releasing new models
frequently. However the company should make sure that it releases
models for; the rural India. Rural will be the future market in the
motorcycle industry.

75% of the vehicle sold is only due to the finance option of

easy installments. Without finance options Hero Honda motorcycles
would not have such high sales. Hero Honda should set up it non-
faineance company.

Some models instead of acting as prep-up-model to splendor

have actually eating the spender sales.

Advertising program must involves a five step process:

 First, setting advertising objectives i.e., the advertising must be

informative, persuasive or remind / reinforce.

56
 Second, to establish a budget.

 Third, the message must be executed with the most appropriate

style, tones, words and format and in a socially responsible
manner.

 Fourth, the media, TV is the best media because it will deliver

the desired results in terms of circulation, audience, effective
audience and effective Ad exposed audience

 Finally marketers must take steps to evaluate the combination

and sales effects of advertising.

SUGGESTIONS

 As the location of the showroom is ideally located with middle

class and high upper middle class population, Sri Lakshmi Motors
should try to give more advertisements thorny paper, bill boards

57
 in that area to enable Re-sale of the people for Sri Lakshmi
Motors.

 It should conduct road shows to colleges for the area.

 It should earmark a day in a week to organize vehicle clinic

workshops for its customers.

 Sri Lakshmi Motors, should constantly keep in touch with its

customers and inform them about the latest models / finance
schemes.

 It should employ corporate Mkt. Executives to go and tap the

Industrial belt employee’s rater than wait for customers to came
to Sri Lakshmi Motors, Sri Lakshmi Motors should go to the
prospective customers with the help of integrated mkt. Efforts.

 Sri Lakshmi Motors should track the movement of spare-parts

and stock spare parts in advance otherwise the fake parts would
become popular and justified.

 Sri Lakshmi Motors should launch a campaign against take spare

parts by educating customers about the benefits of genuine
spare parts.

 Local mechanics should be given incentives when they buy from

the showroom.

58
 Sri Lakshmi Motors to enlist local mechanic help should try to
organize automobile work / training camp for the local
mechanics.

 Value added services like pollution checkup license should be

taken up.

 A safe riding tips billboards from Sri Lakshmi Motors should be

setup.

 Sri Lakshmi Motors should employ experience mechanics

because the survey has revealed that the mechanics are not
thorough in their job.

 Sri Lakshmi Motors should reduce the cost of servicing to about

Rs.100 or less to wean away the customers from local
mechanics.

 As the survey has revealed that the sales would increase. V

should understand that how the sales have increased? What is
the % of old customers coming for exchange and what is the %
of new customers understanding this would help better in
formulating customer retention and attraction strategies.

CONCLUSION

59
 Sri Lakshmi Motors should setup sub dealers in remote localities
in the area. Sri Lakshmi Motors should go to small tours through
road shows in nearby districts.

 Sri Lakshmi Motors should create its own website and offer value
added services through website. The website should be
interactive and deal with all aspects from giving information
about models. Finance options, safety tips and suggestions about
vehicle problems.

CUSTOMER QUESTIONNAIRE

60
 Name:

Place:

Date:

1) Do you own a bike?

a) Yes [ ] b) No [ ]

2) If yes, which bike do you own?

a) HERO HONDA
b) BAJAJ
c) TVS
d) L.M.L
e) YAMAHA
f) OTHERS

3) Why did you choose the above brand?

a) Brand Image b) Mileage c) Pickup d) Style

e) Maintenance f) Others

4) Who influence you to prefer the above brand?

a) Friends b) Relativesc) Advertisements d) Others

5) Are you aware of Hero Honda?

a) YES b) NO

6) Would you like to own a Hero Honda bike?

61
 a) YES b) NO

If Yes, Why? _________________________________

7) How do you feel about the price of bike?

a) High b) Low c) Affordable d) None

8) ON what occasion do you buy a bike?

Please Specify ________________________________

9) Do you suggest which brand to your friends & which dealer?

___________________________________________

10) What influences your buying decision ?

___________________________________________

11) which type of desigan will you selected ?

___________________________________________

12) which type of wells will you like ?

___________________________________________

13) did you want low weight or high weight ?

62
 ___________________________________________

14) how much mileage you expecting ?

___________________________________________

15) Please give me your valuable suggestion ?

___________________________________________

___________________________________________.

63
 BIBLIOGRAPHY

MAGAZINES

1) THE SURVEY OF INDIAN INDUSTRY 2007-THE HINDU

2) BUSINESS WORLD

3) AUTO INDIA

ANNUAL REPORTS

1) HERO HONDA ANNUAL REPORT

WEBSITE

WWW.HEROHONDA.COM

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