INTRODUCTION The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such

as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products, and retailers); The psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media); The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome; How consumer motivation and decision strategies differ between products that differ in their level of importance or interest that they entail for the consumer; and How marketers can adopt and improve their marketing campaigns and strategies to more effectively reach the consumer. One official definition of consumer behavior is The study of individuals, groups, or organizations and the process they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society. Although it is not necessary to memorize this definition, it brings up some useful points: Behavior occurs either for the individual, or in the context of group (.g, friends influence what kinds of clothes a person wears) or n organization (people on the job make decisions as to which products the firm should use). Consumer behavior involves the use and disposal of products as well the study of how they are purchased. Product use is often of great interest to the market, because this may influence how a product is best positioned or how we can encourage increased consumption. Since many environmental problems result from product disposal (e.g., motor oil being sent into sewage system to save the recycling fee, or garbage piling up at landfills) this is also an area of interest. Consumer behavior involves services and ideas as well as tangible products.

The impact of consumer behavior on society is also of relevance. For example, aggressive marketing of high fat foods, or aggressive marketing of easy credit, may have serious repercussions for the national health and economy. There most obvious is for marketing strategy-i.e., for making better marketing campaigns. For example, by understanding that consumers are more receptive to food advertising when they are hungry, we learn to schedule snack advertisements late in the afternoon. By understanding that new products are usually initially adopted by a few consumers and spread later, and then only gradually, to the rest of the population, we learn that (1) companies that introduce new products must be well financed so that they can stay afloat until their products become a commercial success and (2) it is important to please initial customers, since they will in turn influence many subsequent customers brand choices. A second application is public policy. In the 1980s, Accutane, a near miracle cure for acne, was introduced. Unfortunately, Acutance resulted in severe birth defects if taken by pregnant women. Although physicians were instructed to warn their female patients of this, number still become pregnant while taking the drug. To get consumers attention, the federal Drug Administration (FDA) the step of requiring that very graphic pictures of deformed babies be shown on the medicine containers. Social marketing involves getting ideas across to consumers rather than selling something. Marty Fishbein, a marketing professor, went on sabbatical to work for the centers for disease control trying to reduce the incidence of transmission of diseases through illegal drug use. The best solution, obviously, would be if we could get illegal drug users to stop. This, however, was deemed to be infeasible. It was also determined that the practice of sharing needles was too ingrained in the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein created a campaign that encouraged the cleaning of needles in bleach before sharing them, a goal that was believed to be more realistic. As a final benefit, studying consumer behavior should make us better consumers common sense suggests, for example, that if you buy a 64 liquid ounce bottle of laundry detergent, you should pay less per ounce than if you bought two 32 ounce bottles. In practice, however, you often pay a size

premium by buying the larger quantity. In other words, in this case, knowing this fact will sensitize you to the need to check the unit cost labels to determine if you are really getting a bargain. There are several units in the market that can be analyzed. Our main thrust in this course that consumer. However, we will also need to analyzed our own firms strengths and weaknesses and those competing firms potential threat, we need to examine its assess (e.g. technology, patents, finally, we need to assess conditions (the marketing environment). For example, although we may have developed a product that offers great appeal for consumers, arecession may cut demand dramatically.

NEED FOR THE STUDY Hero Honda is one of the leading companies in automobiles. The consumer satisfaction is very important for firm to establish for a long period. The consumer wants necessary to be satisfied by the company. The present study helps us to know the extent of consumer behavior towards the Hero Honda products. To identify the factors affecting the consumer in his purchasing decision.

OBJECTIVES OF THE STUDY To know the preference of consumer To know the buying process of consumer To study the factors effecting the purchase decision To get the economic output of required quality To draft the suggestions and boost up the CPY To monitor the consumer values To examine the consumer Perception & Attitudes towards the company.

LIMITATIONS OF THE STUDY

It was confined to a period of one month so comprehensive study is not possible. The report is strictly based on the opinion of the respondents. The study was confined to the consumers who are local belonging to Kakinada. So, the present study was restricted to Kakinada. The sample size is limited to 100 customers. It doesnt include the price range of products. METHODOLOGY OF THE STUDY To achieve the objective the following methodology has been adapted. There are two sources through which data has been collected. They are primary date & Secondary data.

Primary Data: The data has been collected by contacting the employees of the organization of JAYARAM MOTORS. Along with this a questionnaire has been designed by me to collect relevant data from the consumers.

For the study a sample of 100 consumers are taken and the relevant information has been collected from them by asking them to answer the questionnaire. The collected data has further analyzed to arrive at the required objectives.

Secondary Data: The secondary data has been collected from the past records, internet and from reports available.

INDUSTRY PROFILE

Introduction to two Wheelers

Before you buy a two-wheeler there are mostly two of buying a two-wheeler. Need and desire. Let us first focus on the need based buying, which is rational and logical. There is no such thing as a perfect bike in the world. Every mechanical device such as a two-wheeler is intended for a specific application, and this has to be defined by the end-users. The first step is to define customers need. From the practical point of view most people of view most people look for a workhorse that can take them to work every day, run errands, do odd jobs, nor cost too much, nor guzzle up too much petrol, be easy to put on stand get off stand, be fairly reliable and easily repairable with easy availability of spare parts. A budgetary constraint is also an important factor contributing to the kind of bike on would eventually buy. Apart from budget, the two most important factors in bike are safety and comfort.

Inventions of two wheelers The invention of the first two-wheelers is a much debated issued. Who invented the first motorcycle? May seem like a simple question. But the answer is quite complicated. Two wheelers owe descent to the safety bicycle with front and rear wheel. Those bicycle, in turn descended from high-wheel bicycles. The high wheelers descended from early type of pushbike without pedals, propelled by the idlers feet pushing against the ground. These appeared in they were called bone crushers. Both for their jarring ride, and their tendency to toss their riders. Got lied Daimler (Who later teamed up with Karl Benz, to from the Daimler-Benz Corporation) is credited with building the first motorcycle. In 1885, one wheel in the front and one in the back, although it had a smaller spring loaded outrigger wheel in each side. It was constructed mostly of wood, the wheels were of the iron-banded wooden spoke wagon-type, it definitely had a bone-crusher chases is! These two-wheelers was powered by a single-cylinder

engine and may have had a spray type carburetor, if two wheels with steam propulsion can be called motorcycle, then the first one may have been American. Chassis is also based on the bone-crusher Bike.

HISTROY/ORGIN OSCOOTER Britannia Encyclopedia describes a motorcycle as a bicycle or tricycle paroled by an internal-combustion engine. The motor on bikes, scooter, and mopeds or motorizes velocipedes are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement, the multiple-cylinder motorcycle have displacement of more than 1,300 cubic cm. the automobile was reply to the 19th century dream of self-propelling the hors-drawn carriage. Similarly the invention of the motorcycle created the self-propelled bicycle. The first commercial design was a three-wheeler built by Edward butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two sterile front wheels and connected by drive chain to the rear wheel. The 1990s saw the conversion of many bicycles, or pedal cycle by adding small, centrally mounted spark constructions. This led road trail tests and competitions between manufactures. Tourist trophy (TT) races were held providing ground for many ideas. A long way down the road.

Ever wondered about who invented the automobile? For all purposes, a French inventor called Nicholas Cugnot in 1769 built the first land vehicle that was propelled by an engine. It was an enormous three wheeled cart with an engine and a huge boiler. Speed and mileage were clearly not its strong points. Since it could travel about four kilometers an hour and had to be refueled every 15 miles!

Big Indian Wheels. Did you know that the word juggernaut- the term used to describe huge trailertrucks with massive tonnage capacity-has its origins in India? Apparently, the gigantic temple chariot at the Lord Jagannath of puri temple in Orissa inspired it.

For a smoother drive Two inventions in the 1880s were to change the face of the automobile world forever. One was the invention of the internal combustion engine, which used petroleum based fuels to propel itself. And the second invention was that of the airfilled tyre. These inventions led to the development of motor vehicles, as we know them today.

The longest car in the world The Flemish really has a way with words. Simple words pose a challenge to them. This is why you need to take a very deep breath, when you try to say the Flemish word for motorcar.

Indian Two Wheelers: Along Road The total length of roads in India is an estimated 3.01 million kilometers. These roads accommodate one of the largest two-wheeler populations in the world.

Anyway, whats in a wheel? The problems of left hand and right hand drive simply did not exist for the Volkswagen Company. When the problem cropped up, they simply created a car whose steering wheel and controls could be shifted from one side to another!

The Diesel Dodo The now defunct Sooraj motorbike was one of its kinds. It is perhaps the only Indian made motorbike than ran exclusively on diesel.

Power to people Did you know that the name Volkswagen (pronoun Folks wagon) is best translated as the Peoples Car. This company is trying to put its manufacturing unit in India.

COMPANY PROFILE Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda company, India.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan Fill it-Shut it-Forget it that emphasized the motorcycles fuel efficiency helped the company grow at a double-digit since inception.

Hero Honda has three manufacturing facilities based at Dharuhera and Gurgaon in Haryana and at Hardware in Uttarpradesh. These plants together are capable of churning out 3.9 million bikes per year. Hondas has a large and service network with over 3,000 dealerships and service points across India. Hero Hondas

customer loyalty program, the Hero Honda Passport Program, claims to be one of the largest programs of its kind in the world with over 3 million members.

The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108.

History

India became the second largest two wheeler manufacturer in the world and starting in the 1950s with the Automobile Products of India (API) that manufactured the Lambrettas and Bajaj Auto Ltd.with its association with Piaggio of Italy (manufacturer of Vespa scooters) as the largest manufacturers within the country.

The license raj that existed between the 1940s to 1980s in India did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a sellers market. Customers in India were forced to wait up to 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that the he did not need a marketing department. Only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters.

The motorcycle segment had the same long wait times with three manufacturers: Royal Enfield, IDEAL Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only four-stroke engine at that time and took the higher end of the market but there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively.

In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and kinetic Motor Company (Kinetic Honda). The entry of these foreign companies changed the Indian market dynamics from the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.

Corporate profile The Hero Honda story began with simple with a simple vision-the vision of a mobile and an empowered India, powered by Hero Honda. These visions were drive by hero Hondas commitment to customer, quality and excellence, and while doing so, maintain the highest standards of ethics societal responsibilities. Twenty five years and25 million two wheelers later, Hero Honda is closer to fulfilling this dream. This vision is the driving force behind everything that we do at Hero Honda. We understood that the fastest way to turn that dream into a reality is by remaining focused on that vision.

There were many unknowns but we kept faith, and today, Hero Honda has been the largest two wheeler company in the world for eight consecutive years. Our growth has kept compounding. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15 million units in just five years! In fact, during the year in review, Hero Honda sold more wheelers than the second, third and fourth placed Two-wheeler Company put together. With Hero Honda, the domestic two wheeler market was able to show positive growth during the year in review. Without Hero Honda, the domestic market would have actually shrunk. Over the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and

perfected their roles as joint venture partners. What the two partners did was something quite basic. They simply stuck to their respective strengths. As one of the worlds technology leaders in the automotive sector, Honda has been able to consistently provide technical know-how, design specifications and R&D innovations. This has led to the development of world class, value-for-money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Honda bikes on this countrys roads than the total population of some European countries put together! The companys meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Hondas bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centre and stockiest located across rural and urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at hardwire has just completed a full year of operations. It is difficult to imagine that all this has happened in the span of just two and a half decades! The best is yet to come. During the year in review, Hero Honda powered its way in a market that, for all practical purposes, was feeling the full effects of the economic slowdown in India. With an economic recovery now clearly on the cards, Hero Honda is all set to ride into another summit. As Brijmohan Lall Munjal, the chairman, Hero Honda Motors succinctly puts it, We pioneered Indias two wheeler industry, weve steered it through difficult times: now it is our responsibility to set the pace again.

HERO HONDAS MISSION

Hero Hondas mission is to strive for synergy between technology, system and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. HERO HONDA Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The team and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

Year

Awards & Recognitions

2010 Company of the year awarded year awarded year awarded year awarded year awarded by Economic Times Awards for corporate Excellence 2008-09. CNBC TV 18 Overdrive Awards 2020 Hall of Fame to Splendor NDTV Profit Car & Bike Awards 2010 y Two-wheeler Manufacturer of the year y CnB Viewers Choice two-wheeler of the Year (Karizma ZMR) Bike Maker of the year by ET-Zig wheels Car & Bike of the year Awards 2009

2009 Two-wheeler Manufacturer of the year by NDTV Profit Car & Bike Awards 2009 and Passion Pro ADJUDGED AS CNB Viewers, Choice two-wheeler Top Indian Company under the Automobile Two-wheeler sector by the Dun & Bradstreet-Rolta Corporate Awards Won Gold in the Readers Digest Trusted Brand 2009 in the Motorcycles, category NDTV Profit Business Leadership Awards 2009 two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 Hero Honda wins the coveted NDTV Profit Business Leadership Award 2008 TopGear Profit Car Indian & 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 A WARD FOR Retail Excellence (Strategies and solutions of business innovation and transformation) Best Customer Loyalty Program in Automobile category NDTV Profit car India Awards Bike Manufacturer of the year Overdrive Magazine Bike Manufacturer of the year TNS Voice of the customer Awards: y No.1 executive motorcycle splendor NXG y No.1 standard motorcycle CD Deluxe y No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category: y Overall Bike of the year CBZ X treme y Bike of the year CBZ X-treme (up to 150 c category) y Bike Technology of the year Glamout PGM FI Auto Tech of the year CBZ X-treme by Overdrive Magazine. Bike of the year CBZ X-treme by Overdrive Magazine Ranked CBZ X-treme Bike of the year by B S Motoring Magazine. Most Trusted Company, by TNS Voice of the customer Awards 2006.

CD Deluxe rated as No 1 standard motorcycle by TNS Voice of the Customer Awards 2006.

2006 Adjudged 7th Indian Company by Wall Street Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies. No. 1 in automobile industry by TNS Total Customer Satisfaction Awards 2006: y Splendor Plus (Executive) y CD Deluxe (Entry) y Pleasure (Gearless Scooters) Splendor & Passion Top two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Two Wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 200304 for two-wheeler & three- wheeler Complete (Non SSI) by Engineering Export Promotion Council. The NDTV Profit Car India & Bike India Awards 2006 in the following category: y y y y y Bike Maker of the year Bike of the year Achiever Bike of the year Achiever (up to 150cc category) Bike of the year Glamour (up to 125 cc category) NDTV Viewers Choice Award to Glamour in the bike category

2005 Awaaz Consumer Awards 2005 Indians most preferred two-wheeler brand by CNBC in the Automobiles category. Bike Maker of the year Award by Overdrive Magazine.

ICWAI National Award for Excellence (Second) in cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005.

2004 Winner of the Review 200 Asias Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator Large Size Companies 2003-04 by the outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for Excellence. ICSI National Award for Excellence in corporate Governance 2004 by The Institute of Company Secretaries of India.

2003 Winner of the Review 200 Asias Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the year by Overdrive Magazine.

2002 Bike Maker of the year by Overdrive Magazine. Winner of the Review 200 Asias Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the year of ET Awards for Corporate Excellence. Financial Management and Best Operational Efficiency category and ranked 6th in Overall Best Investor Relations category, by Asia money.

Highest Wealth Creating Company of the year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.

2001 Bike Maker of the year by Overdrive Magazine. Winner of the Review 200 Asias Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment.

1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India.

1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. On being ranked 9th amongst the most investor rewarding companies in India. 1991 Economic Times-Harvard Business Performance to Hero Honda Motors Ltd. School Award for Corporate

KEY MILESTONES OF HERO HONDA

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 Hero Honda Motors Ltd. Incorporated 1985 First motorcycle CD100 rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model Sleek introduced

1991 New motorcycle model CD 100 SS introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated A School in the memory of founder Managing Director, Mr. Raman Kant Munjal 1994 New motorcycle model Splendor introduced 1,000,000th motorcycle produced 1997 New motorcycle model Street introduced Hero Hondas 2nd manufacturing plant at gurgaon inaugurated 2,000,000th motorcycle produced 1999 New motorcycle model CBZ introduced Environment Management System of Dharuhea Plant certified with ISO-14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated- A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared World No. 1- Largest selling single two-wheeler model Hero Honda Passport Programme CRM Programme launched

2001 New motorcycle model Passion introduced One million productions in one single year New motorcycle model Joy introduced 5,000,000th motorcycle produced

2002 New motorcycle model Dawn introduced New motorcycle model Ambition introduced Appointed Virendeer Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the worlds largest selling model for the third calendar year in row (2000, 2001, and 2002) New motorcycle model CD Dawn introduced New motorcycle model Splendor + introduced New motorcycle model Passion Plus introduced New motorcycle model Karizma introduced

2004 New motorcycle model Ambition 135 introduced Hero Honda became the World No.1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor Worlds largest selling motorcycle crossed the 5million mark New motorcycle model CBZ* introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the world No. 1 for the 4th year in a row New motorcycle model Super Splendor introduced New motorcycle model CD Deluxe introduced

New motorcycle model Achiever introduced First Scooter model from Hero Honda pleasure introduced

2006 Hero Honda is the World No. 1 for the 5th year in row 15 million production milestones achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row New Splendor NXG LANCHED New CD Deluxe launched New Passion Plus launched New motorcycle model Hunk launched

2008 Hero Honda Haridwar Plant inauguration New Pleasure launched Splendor NXG launched with power star feature New motorcycle model Passion Pro launched New CBZ Xtreme launched 25 million production milestones achieved CD Deluxe launched with power start feature New Glamour launched New Glamour Fi launched

Hero Honda GoodLife Program launched Hunk (Limited Edition) launched Splendor completed 11 million production landmarks New motorcycle model Karizma ZMR launched Silver jubilee celebrations

SALES PERFORMANCE
HERO HONDA REPORTS LEADERSHIP PERFORMANCE WITH 50% NET PROFIT IN Q2,08-09 DEFIES INDUSTRY TREND WITH TURNOVER (NET SALES & OTHER OPERATING INCOME), AT RS. 3202 CRORE: EBIDTA AT 13.58 PER CENT Total sales Exports (incl in above) Aug06 2,15,076 Aug07 2,40,875 FY06-07 12,82,860 FY 07-08 12,63,254

Highlights of Q2, FY08-09 y Total turnover(Net sales & Other Operating income) Rs 3202 crores, growth of 35.6 percent y Net profit after tax at Rs 306.30 crores, growth of 50 per cent y EBIDTA margin for the quarter 13.58 per cent y Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent y Total sales for H1 stands at 18,66,349 growth of 19.7 per cent y Over 55 percent share in domestic motorcycle market y Launches first-of-its kind music video to celebrate 25 years of Hero Honda

New Delhi, October 21, 2008: Hero Honda Motors Ltd (HHML), the worlds largest two-wheeler company for seven consecutive years, today firmly reiterated its undisputed leadership in the domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2)-July to September of this year (FY) 2008-09. Even as the industry continued to face tough market conditions on account of uncertainty over interest rates and overall credits squeeze, the company reported 50 percent growth in profit after tax (PAT) at Rs 306.30 crore for the second quarter. Hero Hondas profit after tax is much better in the corresponding period last fiscal. The company has recorded an EBIDTA margin in the previous quarter (April-June -08) was 12.02 percent. The strong financial performance is in line with the companys better-than-industry top line growth. After posting a growth 11.38 in the first quarter, the company kicked off with a 39.08 percent growth in sales in the month of July and followed up 26.8 percent growth in august and 22.4 percent in September. Hero Honda constantly keeps growing its share in the domestic motorcycle market, and currently enjoys over 55 percent share. Hero Hondas cumulative sales for the second quarter (Q2) this FY stands at 9, 72,095 units-a growth of 28.5 percent over Q2 last FY (2007-08). The cumulative sales for the first six month (H1) stands at 18, 66,339 units of two wheelers compare to 15,59,486 units sold in (H1) in the last FY- reflecting a consistent 19.7 percent growth cumulative sales. Dr Brij Mohan Lall, Chairman, Hero Honda Motors ltd, said we are happy with our financial performance. It gives immense joy to see the kind of results in the 25th year of our company. I wish to all our stakeholders customers, associates. Dealer friends, ancillaries and also our joint venture partners Honda Motors Cofor their continuous support. Mr. Pawan manjul, MD and CEO, Hero Honda Motors LTD said numbers speak for themselves. Even in this volatile and competitive environment, our top line continuous outpace the industry growth, our market share is at an all time high, and the financial balance sheet is a delight- all the factors which from the Hallmark of a resilient company with cutting-edge management. We will continue to keep

innovating in bringing in technologically superior products, in our network expansion in brand building, in our financial management and in our communication. Going forward, we will have kept a close watch on the commodity prices movement, and other factors such as inflation, interest rate scenario and ability of retail finance. These factors will play crucial role in the industry growth in the subsequent quarters. He added. Hero Honda has already rolled out its festive season initiatives, with the launch of four new models- the all new Passion Pro and three refreshers of its existing models- new CBZ X-treme, as self-start version splendor NXG and the refreshed Pleasure. During the coming months, the company will further augment its product portfolio with new launches across segments, Key hero Honda brand continue to derive strong volumes across segments- CD Deluxe in entry segment, and Hunk, CBZ Xtreme and Karizma and the premium segment. Celebrating its 25th year, Hero released an innovative music video in the month September. Titled Hero Honda Dhak Dhak go, and involving as many as eight a brand ambassadors of Hero Honda, the music videos have been receiving rave reviews. Hero Honda recently won two very coveted awards the most preferred brand of two wheelers. Award at the recent CNBC Awaaz consumer Awards 2008, and the NDTV Profit Business leader ship award.

HERO HONDAS POSITIVE PERFORMANCE CONTINUES IN NOV08 REPORTS 13%GROWTH IN CUMULATIVE SALES IN APR-NOV08 New Delhi, Tuesday, April 21, 2009; New Delhi, December 1, 2008: Hero Honda Motor Ltd continues to buck the prevailing trend in the two-wheeler industry. Close on the heels of record retail sales of more than 600,000 units in the Festive month of October, Here Honda today reported dispatch sales of 289,026 Units in November 2007. This achievement is significant, coming as it does immediately after the bumper festive season, when the sales are usually expected to slacken considerably. The companys cumulative sales in the financial year so far (AprilNovember08) has now risen to 25,08,214 units- a 13 per cent growth over the corresponding period last year (April-November07) when Hero Honda had sold 22,12,535 units. According to Mr.ANIL Dua, Senior VP (Marketing and sales), Hero Honda Motor Ltd, Our performance in November comes against several odds. Scarcity of retail Finance in many key focuses has been on driving growth despite these constraints. Therefore, our performance in November is of added significance, as it has surpassed the numbers of November07-which was the high-sales Diwali month last year. Having already launched five new models in this financial year, including variants and refreshes, Hero Honda is set to announce a few more launches in the coming weeks. The new launches will be across segment to further augment the already strong Hero Honda range. Hero Honda brands have been driving volumes in their respective segments CD Deluxe in the entry segment; Glamour, Splendor NXG, Splendor+ and Passion Plus in the Deluxe segment, CBZ X-treme and Hunk in the Premium segment and Pleasure in scooters. The new CBZ X-treme, which was introduced in October, is being communicated through a new cutting-edge, fast-paced TV Commercial (TVC) currently on air across channels. The new refreshed Pleasure, which is clocking an average of

approx 12,000 units per month, is also being supported by knew TVC featuring its brand ambassador Priyanka Chopra. Hero Honda continues to invest kin brand building and strengthening its association with properties such as cricket. Hero Honda was the title sponsor of the recently-concluded Hero Honda One-Day International (ODI) series between India and England which India won LISTS OF MODELS y y y y y y y y y y y y Achiever Ambition 133,Ambition 135 CBZ, CBZ star, CBZ Xtreme CD 100, CD 100 SS,CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour F.I Hunk Joy Karizma, Karizma R, Karizma ZMRFI Passion, Passion+, Passion pro Pleasure Street Splendor,Splendor+,Splendor+(LimitedEdition),SuperSplendor, SplendorNXG

JAYARAM AUTOMOBILES Jayaram automobiles commence its operations in 1986 at Kakinada as franchisee of Hero Honda Ltd, a reputed two wheeler manufacturer. Jayaram Gopal and D. Sai Krishna together started with a monthly sale 10 to 20 two wheelers initially. Now it has reached a monthly sales volume of 250 vehicles. By virtue of excellent progressive performance at Kakinada, Jayaram automobiles where awarded another dealership near sarpavarma during the year 2003. Jayaram automobiles are one of the district largest and most modern auto mobile showrooms, measuring 5500 sq.ft. at present Jayaram automobiles is offering services through authorized dealer representation at 5 places namely Thatipaka, Ramachandrapuram, Yeleswaram, Jaggampeta, and Peddapuram of East Godavari district in A.P. besides this Jayaram automobiles is handling services and spares points at two places namely Amalapuram and Tuni. The showroom includes 4 department namely sales, spares, services and safety. The showroom is equipped wit5h automated work shop AC customer lounge, company trained mechanics, supervisors and managers which adds to its prestige.

SERVICES OFFERED: The services offered to the customers are      Maintaining the service center with state of the art-technology. Finance through corporate finance and bank. Free checkup campaigns. Acceptance of warranty claims. Mobile service at different plans on.

WORKING HOURS: Working hours in Jayaram automobiles are 8hours per day commencing from10am to 1pm and 3 to 7pm with two hours break for lunch (1pm to 3pm).

THEORETICAL FRAME WORK

Why must we be concerned with our customers attitude? Take a moment to recall your personal exposure to the thousands of sales programs, promotion campaigns, radio and television commercials, news paper and magazine ads. These sales devices are intended to sell the consumer a never-ending variety of products, services, investments, etc. This points to a problem that a lot of business people have not been exposed to and which ma causing frequent loss of sales. I will present here a deeper and more factual look into our customers receptiveness, or lack of it, toward its sales and services proposals. When a sales approach is consumer accepted, it will do the job it was designed to do, which is promote our business; and furthermore, will serve to erect a wall of defense between the consumer and our industry .this wall of defense, relative to caution, is constructed entirely of past experience, thoughts and impressions and represents a mental resistance to being pushed, pressured, or fooled into anything that is not wanted or needed. This especially holds true when consumer dollars are involved a haphazard attempt to sell is worse than no attempt at all. Any sales approaches are either met with consumer acceptances or rejection. It benefits all of us to carefully evaluate our sales approaches, keeping in mind this pitfall. If we lose a sale, than in itself is not a problem, but many times than first rejection carries over into several years. This defense wall has many doors that may be opened and closed instantly at the discretion of the consumer. The consumer often triggers the opening or closing without being aware of his reasons for doing so. Therefore, an analysis of consumer attitude includes measuring the amount of customer resistance to our sales approach. This, in-turn activates the doors in decision making. We either get by the attitude defense mechanism or we are shut out by it. Our concern when we dont make a sale is, was the door gracious closed or violently slammed? The average consumer is shrewd, dollar and market conscious, and can instinctively sense when he is being hustled. The can quickly sense in-competency and/or hard-sell tactics. He knows that millions of advertising dollars are spent for one purpose to gather consumer dollars.

The goal of any sales strategy is constancy. We wish to open doors and keep them open. Some advertising companies do not understand these basic fundamentals. The consumer becomes a target to be hit. The consumer should not to be sold short. If the sales approach is not tolerant towards the delicate customer attitude, a dependable and honest supplier can lose sales and customers. Worst of all, he wouldnt even know why. There is better way. We can understand customer attitudes, and work with the mental resistance that has been put there by careless un-factual sales programs. We can work with customer attitude and profit from it. Consider the coca-cola commercial with a Mean Joe Greene and the little boy. A masterpiece, pleasing to the viewer. Effect on consumer attitude? Opening of doors. No wild claims to create confusion and frustration. Even if this commercial fell flat on its face, which it did not, there is no risk of arousing customer attitude in the wrong way, and incurring its wrath. Gear your advertising and selling to your customers attitudes, not to your customers. If you maintain an ever-conscious effort to present yourself, your service, and your products in a manner that will not offend your customers attitudes, you will have accomplished something of value. Attempts to spice-up your advertising and sales approach do more harm than good. The more factual and condensed you keep your presentation; the less problem your customer will have making a decision. If you build a sales approach that is cluttered with the sales motivators, your customer will have to find the facts before being able to decide on your proposal. Customers are often lost in this fact-fiction search. Cares customer attitude, dont slap it. Make the decision making easy for your customer. Condense your sales proposals to factual bottom line. Proposed work, cost factors, time schedules, payment terms, etc, should all be concise and plainly spelled out. Add conclusions to your proposals so that the only decision your customer has to make is a yes or no. Put a block in a door to keep it from shutting on you. Be specific and be confident. Take command of diagnosis or estimate calls and show authority, but do it in a brief and pleasant manner that leaves no doubt of your qualifications. Make your proposal, set your price, and stand firm. People will always respect and to an

honest, factual and no-gimmick sales approach when they sense no troublesome loose ends. Do not crowd your customer for a yes or no, or it will probably be a no. when your point is made, dont belabor it. Qualify all aspects of sales program, before activating it, with this thought: open a door, or at the very least, dont slam it on tomorrow.

Consumer Research Methods

Market research is often needed to ensure that we produce what customers really want and not what we think they want.

Primary vs. secondary research methods: There are two main approaches to
marketing. Secondary research involves using information that others have already put together. For example, if you thinking about starting a business making clothes for tall people, you dont need to question people about how tall they are to find out how many tall people exit that information has already been published by the U.S. Government. Primary research, in contrast, is research that you design and conduct yourself. For example, you may need to find out whether consumers would prefer that your soft drinks be sweater or tarter. Research will often help us reduce risks associated with a new product, but it cannot take the risk away entirely. It is also important to ascertain whether the research has been complete. For example, coca cola did a great of research proper to releasing the new coke, and consumer seemed to prefer the taste. However, consumers were not prepared to have this drink replace traditional Coke.

Secondary Methods: For more information about secondary research market

research tools and issues

Primary Methods: Several tools are available to the market researcher-e.g. mail
questionnaires, phone surveys, observation, and focus groups. Surveys are useful for getting a great deal of specific information. Surveys can contain open-ended questions (e.g. In which city and state were you born?_______) or closed-ended questions, where the respondent is asked to select answers from a brief list (e.g. __Male__ Female.) open ended questions have

advantages that the respondent is not limited to the options listed, and that the respondent is not being influenced by seeing a list of responses. However, openended questions are often skipped by respondents, and coding them can be quite a challenge. In general, for surveys to yield meaningful responses, sample sizes of over 100 are usually required because precision is essential. For example, if market share of twenty percent would result in a loss while thirty percent would be profitable, a confidence interval of 20-35% is too wide to be useful. Surveys come in several different forms. Mail surveys are relatively inexpensive, but response rates are typically quite low-typically from 5-20%. Phone-surveys get somewhat higher response rates, but not many questions can be asked because many answer options have to be repeated and few people are willing to stay on the phone for more than five minutes. Mall intercepts are sensitive face-to-face with an interviewer. Surveys as any kind of research, are vulnerable to bias. The wording of a question can influence the outcome a great deal. For example, more people answered no to the question should speeches against the democracy be allowed? then answered no to should speeches against democracy be forbidden? For face-to-face interviews, interviewer bias is danger, too. Interviewer bias occurs when the interviewer influences the way the respondent answers. For example, unconsciously an interviewer that works for the firm manufacturing the product in question may smile a little when something good is being said about the product and frown a little when something negative is being said. The respondent may catch on say something more positive than his or her real opinion. Finally, a response bias may occur-if only part of the sample responds to a survey, the responds answers may not be representative of the population. Focus groups are useful when the marketer wants to launch a new product or modify an existing one. A focus group usually involves having some 8-12 people come together in a room to discuss their consumption preferences and experiences. The group is usually led by a moderator, who will start out talking broadly about topics related broadly to the product without mentioning the product itself. For example, a focus group aimed at sugar-free cookies might first address consumers snacking preferences, only gradually moving toward the specific product of sugarfree cookies. By not mentioning the product up front, we avoid biasing the

participants into thinking only in terms of specific product brought out. Thus, instead of having consumers think primarily in terms of what might be good or bad about the product, we can ask them to discuss more broadly the ultimate benefits they seek. For example, instead of having consumers merely discuss what they think about some sugar-free cookies that we are considering releasing to the market, we can have consumers speak about their motivations for using snacks and what general kinds of benefits they seek. Such a discussion might of wholesomeness; consumers might indicate a desire to avoid artificial ingredients. This would be an important concern in the marketing of sugar-free cookies, but might not have come up if consumers were asked to comment directly on the product where the use of artificial ingredients is, by virtue of the nature of the product, necessary. Focus groups are well suited for some purposes, but poorly suited for others. In general, focus groups are very good for getting breath-i.e. finding out what kinds of issues are important for consumers in a given product category. Here, it is helpful that focus groups are completely open-ended. The consumer mentions his or her preferences and opinions, and the focus group moderator can ask the consumer to elaborate. In a questionnaire, if one did not think to ask about something, changes are that few consumers would take the time to write out an elaborate answer. Focus groups also have some drawbacks, for example: y They represent small sample sizes. Because of the cost of running focus groups, only a few groups can be run. Suppose you run four focuses with ten members each. This will result in an n of 4(10) =40, which is too small to generalize from. Therefore, focus groups cannot give us a good idea of: y What proportion of the population is likely to buy the product? y What price consumers are willing to pay? y The groups inherently social. This name that: y Consumers will often say things that may make them look good (i.e. they watch public television rather than soap operas or cook fresh meals for their families daily) even if that is not true. y Consumers may be reluctant to speak about embarrassing issues (e.g. weight control, birth control).

Personal interviews involve in-depth questioning of an individual about his or her interest in or experiences with a product. The benefit here is that we can get really into depth (when the respondent says something interesting, we can ask him or her to elaborate), but this method of research is costly and can be extremely vulnerable to interviewer bias. To get a person to elaborate, it may help to try a common tool of psychologists and psychiatrists-simply repeating what the person said. He or she often become uncomfortable with the silence that follows and l then tend to elaborate. This approach has the benefits that it minimizes the interference with the respondents own idea and thoughts. He or she is not influenced by a new question but will; instead, go more in depth on what he or she was saying. Personal interviews are highly susceptible to inadvertent signaling to the respondent. Although an interviewer is looking to get at the truth, he or she may have a significant interest in appositive consumer response. Unconsciously, then, he or she may inadvertently smile a little when something positive is said and frown a little when something negative is said. Consciously, this will often not be noticeable, and the respondent often will not consciously be aware that he or she is being reinforced and punished for saying positive or negative things, but at an unconscious level, the cumulative effects of several facial expressions are likely to be felt. Although this type of conditioning will not get a completely negative respondent to say all positive things, it may swing the balance a bit so those respondents are more likely to say positive thoughts and withhold, or limit the duration of, negative thoughts. Projective techniques are used when a consumer may feel embarrassed to admit to certain opinions, feelings, or preferences. For example, many older executives may not be comfortable admitting to being intimidated by computers. It has been found that in such cases, people will tend to respond more openly about someone else. Thus, we may ask them to explain reasons why is or is not using a product. The main problem with this method is that difficult to analyze responses. Observation of consumers is often a powerful tool. Looking at how consumers select products may yield insights into how they make decisions and what they look for. For example, some American manufacturers were concerned about low

sales of their products in Japan. Observing Japanese consumers, it was found that many of these Japanese, who wanted a name of a major time consumers spend comparing prices, or whether nutritional labels are being consulted. A question arises as to whether this type of spying inappropriately invades the privacy of consumers. Although there May because of some concern in that the particular individuals have not consented to be part of this research, it should be noted that there is no particular interest in what the individual customer being watched does. The question is what consumers-either as an entire group or as segments-do. Consumers benefit, for example, from stores that are effectively to promote efficient shopping. If it is found that women are more uncomfortable than men about others standing too close, the areas of the store heavily trafficked by women can be designed accordingly. What is being reported here, then, are averages and tendencies in response. The intent is not to find juicy observations specific to one customer. The video clip with paco Underhill that we saw in class demonstrated the application of observation research to the retail setting. By understanding the phenomena such as the tendency toward a right turn, the location of merchandise can be observed. It is also possible to identify problem areas where customers may be overly vulnerable to the but brush, or overly close encounter with others. This method can be used to identify problems that the customer experiences, such as difficulty finding a product, a mirror, a changing room, or a store employee for help. Online research methods: the internet now reaches the great majority of households in the U.S. and thus, online research provides new opportunity and has increased in use. One potential benefit of online surveys is the use of conditional branching. In conventional paper and pencil surveys, one question might ask if the respondent has shopped for a new car during the last eight months. If the respondent answers no, he or she will be asked to skip ahead several questions-e.g. going straight to question 17 instead of proceeding to number 9. If the respondent answered yes, he or she would be instructed to go to the next question which, along with the next several ones, would address issue related to this shopping experience. Conditional

branching allows the computer to skip directly to the appropriate question. If a respondent is asked which brands he or she considered, it is also possible to customize brand comparison questions to those listed. Suppose, for example, that the respondent considered Frod, Toyota, and Hyundai, it would be possible to ask the subject questions about his or her view of the relative quality of each respective pair-in this case Ford vs. Toyota, Ford vs. Hyundai, and Toyota vs. Hyundai.

There are certain drawbacks to online surveys. Some consumers may be more comfortable with online activities than others-and not all households will have access. Today, however, this type of response bias is probably not significantly greater than that associated with other types of research methods. A more serious problem is that it has consistently been found in online research that it is difficult-if not impossible-to get respondents to carefully read instructions and other information online-there is a tendency to move quickly. This makes it difficult to perform research that depends on the respondents reading of a situation or product description. Online search data and page visit logs provide valuable ground for analysis. It is possible to see how frequently various terms are used by those who use a firms web site search feature or to see the route taken by most consumers to get to the page with the information they ultimately want. If consumer use a certain term frequently that is not used by the firm in its product descriptions, the need to include this term in online content can be seen in search logs if consumer take a long, torturous route to information frequently accessed, it may be appropriate to redesign the menu structure and/or insert hyperlinks in intermediate pages that are found in many users routes A split cable technology allows the researchers to randomly select the panel members in a given community to receive one advertising treatment and the other half another. The selection is truly random since each household, as opposed to neighborhood, is selected to get one treatment or the other thus, observed difference should, allowing for sampling error, the be result of advertising exposure since there are no other systematic differences between groups.

Interesting, it has been found that consumers tend to be more influenced by commercials that they zap through while channel surfing even if they only see part of the commercial. This most likely result from the reality that one must pay greater attention while channel surfing than watching a commercial in order to determine which program is worth watching. Scanner data is, at the present time, only available for certain grocery item product caregories-e.g., food items, beverages, cleaning items, laundry detergent, paper towels, and toilet paper. It is not available for most non-grocery product items. Scanner data analysis is most useful for frequently purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of purchases in the same product category yield more information with greater precision than would a record of one purchase at one point in time. Even if scanner data were available for electronic products such as printers, computers, and MP3 players, for example, these products would be purchased quite infrequently. A single purchase, then, would not be as effective in effectively distinguishing the effects of different factorse.g., advertising, shelf space, pricing of the product and competitors, and availability of a coupon-since we have at most one purchase instance during a long period of time during which several of those factors would apply at the same time. In case of items that are purchased frequently, the consumer has opportunity to buy a product, buy a competing product, or buy nothing at all depending on the status of the brand of interest and competing brands. In case of the purchase of an MP3 player, in contrast, there may be promotions associated with several brands going on at the same time, and each may advertise. It may also be that the purchase was motivated by the breakdown of an existing product or dissatisfaction or a desire to add more capabilities. Physiological measures are occasionally used to examine consumer response. For example, advertisers may want to measure a consumers level of arousal during various parts of an advertisement. This can be used to assess possible discomfort on the negative side and level of attention on the positive side. By attaching a tiny camera to a plain eye glasses worn by the subject while watching an advertisement, it is possible to determine where on screen or other ad display the subject focuses at one time. If the focus remains fixed throughout an ad sequence where the interesting and active part area changes, we can track whether

the respondent is following the sequence indented. If he or she is not, he or she is likely either no to be paying as much attention as desired or to be confused by a overly complex sequence. In situation where the subjects eyes do move, we can assess whether this movement is going in the intended direction. Mind-reading would clearly not be ethical and is, at the present time, not possible in any event. However, it is possible to measure brain waves by attaching electrodes. These readings will not reveal what the subject actually thinks, but it is possible to distinguish between beta waves-indicating active thought and analysisand alpha waves, indicating lower levels of attention. An important feature of physiological measures is that we can often track performance over time. A subject may, for example, be demonstrating good characteristics-such as we may be able to narrow the 95% confidence interval for the percentage of the target market that is seriously interested in our product to, say , 17-21%, a range that is much more meaningful. Cautions. Some cautions should be heeded in marketing research. First, in general, research should only be commissioned when it is worth the cost. Thus, research should normally be useful in making specific decisions (what size should the product be? Should the product be launched? Should we charge $1.75or$2.25?) Secondly, marketing research can be, often is abused. Managers frequently have their own agendas (e.g., they either would like a product to be launched or would prefer that it not be launched so that the firm will have more resources left over to tackle their favorite products). Often, a way to demonstrate through objective research that your opinions make economic sense. One example of misleading research, which was reported nationwide in the media, involved the case of The Pentagon declares war on Rush Limbaugh. The pentagon, within a year of the election of Democrat Bill Clinton, reported that only 4.2% of soldiers listening to the Armed Forces Network wanted to hear Rush Limbaugh. However, although this finding was based on the question What single thing can we do to improve programming? If you did not write in something like Carry Rush Limbaugh, you were counted as not wanting to hear him.

Culture and subculture

Culture is a part of the external influences that impact the consumer. That is, culture represents influences that are imposed on the consumer by other individuals. The definition of culture offered in one textbook is That complex whole which includes knowledge, belief, art, morals, custom, and any other capabilities and habits acquired by man person as a member of society. From this definition, we make the following observations: y Culture, as a complex whole, is a system of interdependent components. y Knowledge and beliefs are important parts. In U.S., we know and believed that who skilled and works hard will get ahead. In other countries, it may be believed that difference in outcome result more from luck. Chunking, the name for china in Chinese, literally means The middle Kingdom The belief among ancient Chinese that they were in center of the universe greatly influenced their thinking. y Other issues are relevant. Art, for example, may be reflected in the rather arbitrary practice of wearing ties in some countries and wearing turbans in others. Morality may be exhibited in the view in the United States that one should not be naked in public. In Japan, on the other hand, groups of men and women may take steam baths together without perceived as improper. On the other extreme, women in some Arab countries are not even allowed to reveal their faces. Notice, by the way, that what at least some countries view as moral may in fact be highly immoral by the standards of another country. For example, the law that once banned interracial marriages in South Africa was named the Immorality Act, even though in most civilized countries this law, and any degree of explicit racial prejudice, would itself be considered highly immoral.