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College: KRUPANIDHI
BUSINESS SCHOOL
03
INTROUDCTION TO AUTOMOBILE INDUSTRY
TWO WHEELER AUTOMOBILES 08
COMPANY PROFILE 10
HERO HONDA'S MISSION 13
KEY POLICIES FOLLWED BY HERO HONDA 13
HERO HONDA FOLLOWS 3E’s IN FORM OF ETHICS 17
COMPETITERS 23
AWARDS 25
PRODUCT PROFILE 28
RESEARCH METHDLOGY 32
CONCLUTION 39
SUGGESTIONS AND RECOMMENDATIONS 40
SWOT ANALYSIS 43
QUESTIONNAIRE 44
BIBLIOGRAPHY 46
CHAPTER 1
Origin of Motor-Scooters
Edward Butler, an Englishman, built the first motor tricycle in 1884. The first
gasoline-engine motorcycle to appear publicly was built by Gottlieb Daimler, of
Bad Constant, Germany, in 1885. The first practical engines and motorcycles were
designed by the French and Belgians, followed by British, German, Italian, and
American makers. The popularity of the vehicle grew, especially after 1910.
During World War I the motorcycle was used by all branches of the armed forces
in Europe, principally for dispatching. After the war it enjoyed a sport vogue until
the Great Depression began in 1929. After World War II a revival of interest in
motorcycles lasted into the late 20th century, with the vehicle being used for high-
speed touring and sport competitions.
The practice of attaching auxiliary engines to bicycles in Western Europe and
parts of the United States led to the development during the 1950s of a new type of
light motorcycle, the moped. Originating in Germany as a 50-cubic-centimetre
machine with simple controls and low initial cost, it was largely free of licensing
and insurance regulations except in Great Britain.
The more sophisticated motor scooter originated in Italy soon after World War II,
led by manufacture of a 125-cubic-centimetre model. Despite strong competition
from West Germany, France, Austria, and Britain, the Italian scooters maintained
the lead in the diminishing market. The scooter has small wheels from 20 to 36 cm
(8 to 14 inches) in diameter, and the rider sits inside the frame. Power units are
placed low and close to the rear wheel, which is driven by bevel gearing or chain.
INTRODUCTION:
An automobile is transport equipment, which is made up of a frame supporting the
body certain power developing and transmitting units and there are further
supported by wheelers and tires through the springs and axis. The power is
supported through the engine. The automobile moves through the friction of the
contact between the road and the wheel. The protection and comfort is given by the
body of the vehicle. Initially man tamed and trained certain animals for carrying
heavier loads to greater distance at speeds higher than the man could carry. These
means of transport provided by nature to man has a limited regard in terms of load
to carry, distance covered with the load and also the speed of traveling with are
with out luggage’s.
DEVELOPMENT:
Capitan Nicholas Cuglot, A French man is considered to be the father of “the
automobile’’. He was the first to built the self-propelled road vehicle with a three
wheeled coach fitted with a steam engine in 1769-70. in 1802, Richard Trevitluch
built the first practical steam engine, which co7uld move at a speed 21/2 miles per
hour only for a period of 15 minutes. In 1863, a French invited Lenoir, invented
and automobile propelled by gas engine. And during the next few years there was a
large amount of experimental work carried out both on engine and carriages. It was
during the year 1876, Otto and Langen in Germany invited and designed and
internal combustion engine. The actual development of the modern automobile
dates back to 1885. Gottlieb Daimler in Germany patented and internal combustion
engine. Daimlers engine is considered as the first high speed, light construction
engine and this development is considered as the greatest achievement in the
history of automobiles. It was not before 1900 that the improved design of
automobiles fully awakened the public to the greater utilities if this new form of
transportation. The production and sales of vehicles became a real business during
1900-1906, where in various great names in automobile industries started
appearing Packard, olds mobile, ford, overland, white etc.
The year that followed 1906-1920 are considered the 3rd era mass production
and inter changeability methods permitting lower price production. With the year
1920 bean the period of gradual change and refinement in the automobile design.
The spark ignition gasoline engine was power plant of motor vehicle. The steam
and electric engines were already discarded. The engines were located in the front
of chassis. Water-cooled engines had established their university. The main idea in
the designers mind has established to create a vehicle running under all conditions
of weather and time, increasingly comfortable and easy to operate. The main
changes had been the increased tire life, replacement or rigid front axle with
independent front-wheel hydraulic brakes, increased engine compression ratios and
use of stronger and cheaper new materials.
In India, before partition some assembly plants were only established at Bombay,
Calcutta and madras by leading foreign manufactures. In order to create &
manufacture indigenous products, two Indian factories, the premier automobiles
ltd. And Hindustan motors ltd was setup was the progressive manufacturer instead
of assembly from imported components. On recommendation of the traffic
commissions, government of India discouraged the activities of assemblers to
ensure economic output of the automobiles in 1953 and provided a further
body work with an open frame and a platform for the rider to put his feet as well as
small wheels and a front shield was the proto type of modern Vespa scooters., due
to market this product with certain modifications. The capacity was raised from 98
cc to 125cc and styling was improved. First production version of the Vespa
appeared in 1946.
Vespa and Lambretta designed by brilliant engineers applying original ideas to
a set of required conditions were the original trend setters. Since their first
appearance in most war Italy as a popular from of personal and low cost transport,
they have been developed to a high degree of reliability and in a variety of forms
and design.
The post war period witnessed the development of various types of two wheelers
and appearance of different manufacturers in different countries from Italy to
continental Europe, Britain, America, Asia and Russia. Although each country has
its own specific operational requirements like cost, regulations, road and weather
conditions, yet the scooters of Italian origin were the pace setters, and met majority
of the demand. But they had certain advantages as well as disadvantages outside
Italy. The original scooters being quite bare without any provision to protect the
rider against the weather had poor lighting and complete absence of parking lights.
Although they were acceptable in country like Italy yet in France and continent,
they were a rarity.
Reliability of a particular design of two wheelers is assessed by experience.
Certain weaknesses or limitations are liable to be present in new or relatively
unknown designs. In case a particular design is backed by a good spares and
servicing system, the limitations are not serious.
COMPANY PROFILE
The Hero Honda story began with a simple vision – the vision of a mobile and an
empowered India, powered by Hero Honda. This vision was driven by Hero
Honda’s commitment to customer, quality and excellence, and while doing so,
maintains the highest standards of ethics and societal responsibilities. Twenty five
years and 25 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 two 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 world's 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 country's roads than the total population of some
European countries put together!
The company's 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 Honda's bikes are sold and serviced through a network of over
3500 customer touch points, comprising a mix of dealers, service centers 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 Haridwar 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
India's two wheeler industry, we've steered it through difficult times; now it is our
responsibility to set the pace again”.
Hero Honda’s mission is to strive for synergy between technology, systems 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.
This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake
holders.
At Hero Honda, our goal is not only to sell you a bike, but also to help you every
step of the way in making your world a better place to live in. Besides its will to
provide a high-quality service to all of its customers, Hero Honda takes a stand as a
socially responsible enterprise respectful of its environment and respectful of the
important issues.
Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the
economic concerns and the environmental and social issues faced by a business. A
business must not grow at the expense of mankind and man's future but rather must
serve mankind.
"We must do something for the community from whose land we generate our
wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
Example of ethical practice: Among the two and three wheelers, both
selected models of Hero Honda (Splendor and CD 100) are the most eco
friendly two wheelers. They have scored above average in vehicle and engine
design and are one of the very few four-stroke two wheeler fitted with any kind
of pollution control equipment.
Quality Policy
Environment – which is about ensuring that the high technology 4-stroke Hero
Honda motorcycles continue to meet the most stringent pollution control norms at
every level – as they have since the very beginning?
Education –Here are simple steps to a healthy bike, healthy environment, and a
healthy you. which is about promoting comfortable and safe driving, through a
wide dealer network and service centers; as well as in educating people on road
safety, in association with the traffic police and the transport department. Do
remember that you and your family are not only riders, but pedestrian as well. It is
as part of the Hero Honda family that ‘We Care’ to drive home the message of
Road Safety and a Healthy Environment.
Amir Faisal Krupanidhi B. School Bangalore Page 17
A survey on Consumer Perception of Hero Honda Splendor +
Our Hero Honda, the environment and you. It is a three-way relationship that you
should nurture, to reap the benefits for years to come. A well tuned bike keeps the
environment healthy. Good riding practices will keep you healthy. Taking good
care of your bike will always keep your bike healthy.
We are certain that you too will take pride in being a true Hero Honda Good Rider.
1. INTRODUCTION
This Code of Conduct has been adopted by the Board of Directors of Hero
Honda Motors Limited for its members and the senior executive’s one level
below, the Directors, including all functional heads (hereinafter referred to as
"Specified employee").
There are certain clauses of the Code, which are meant for Directors only such
as attending meetings of the Board and Committee thereof. The Specified
employees need to ignore such clauses.
ensure that the Company is well managed in the interests of its shareholders.
The Board of Directors plays the central role in the Company's governance. It is
the Company's decision-making authority on all matters except those reserved
to shareholders or delegated to the management. The Board of Directors is not
expected to assume an active role in the day-to-day management of the
Company.
Each director and Specified Employees seek to use due care in the performance of
his/her duties, be loyal to the Company, act in good faith and in a manner such
Director and Specified employee reasonably believes to be not opposed to the best
interests of the Company. A Director and Specified employee should seek to also:
In carrying out their duties and responsibilities, Directors and Specified employees
should avoid:
and learning. The plant has set up a Gurukul within the complex, which
serves not only as a learning centre for all employees who join the plant, but
also for their continuous development and up gradation of skills.
Each Director and Specified employee should Endeavour to avoid having his
or her private interests interfere with:
i) The interests of the Company or
ii) His or her ability to perform his or her duties and responsibilities
objectively and effectively.
They should avoid receiving, or permitting members of their immediate
family to receive, improper personal benefits from the company, including
loans from or guarantees of obligations by the Company, except as may be
provided in their employment contract.
They should make a full disclosure to the entire Board of any transaction or
relationship that such a Director and Specified employee reasonably expects could
give
Mission Statement:
“We, at Hero Honda, are continuously striving for the synergy between
technology, systems, and Human resources to provide products and services that
meet the quality, performance, and price aspirations of our customers. While doing
so, we maintain the highest standards of ethics and societal responsibilities,
constantly innovate products and processes, and develop teams that keep the
momentum going to take the company to excellence in new millennium”
Competitors:
1. TVS
2. Bajaj
3. Honda
4. Yamaha
5. Suzuki
Hero Honda began operations with establishment of the Dharuhera plant in
1985. Covering a total area of over 58000 sq mts., this fully automated plant is
equipped with state-of-the-art machinery, an in-house research and development
set up, and today it produces a bike every 30 seconds.
To meet the growing demand, Hero Honda opened another unit at Gurgaon, using
FMS technology. Spread over 47000 sq metes., it is rated as one of the most
modern motorcycle manufacturing plants in the world. The plant produces 1800
bikes every day. The spirit of excellence has permeated all their ancillaries and
vendors. Today, they consistently meet and exceed all requirements on quality,
cost and delivery. All this gives a unique joy, a joy that happens when all aspects
of the manufacturing process and supply chain, seamlessly translate into the joy
experienced by their many satisfied customers and dealers.
2008-2009 3,387
2009-2010 3,810
Unique facilities:
Hero Honda trained technicians.
Innovative bikes care solutions to meet individual’s needs.
Personalized service for a total ownership experience.
Mobile service.
Availability of spares.
Quick service.
It also provides mobile service to its customers. The enterprise has skill and
company trained mechanics.
The financial facilities provided by the institutions for purchasing of Splendor plus
1. ICICI Bank.
2. HDFC Bank.
3. Centurion Bank
4. S.B.M and other financial institutions.
AWARDS
Brijmohan Lall , Chairman of Hero Honda, receives the Padma Bhushan from
the President A P J Abdul Kalam….. Monday, March 28, 2005
Dr. Brijmohan Lall Munjal has been conferred the prestigious Padma Bhushan
Award, for his contribution to the Trade and Industry, by the President A P J Abdul
Kalam at the investiture ceremony held at the Rashtrapati Bhavan on28.3.02 Dr.
Munjal is considered to have led Hero Honda from the front to establish it as a
‘World No. 1’ two – Wheeler Company.
A true entrepreneur, he set up Hero Cycles factory in 1956, which engaged in
Presently, Dr. Munjal is the Chairman, Hero Group which straddles Indian
industrial landscape with 20 companies in diverse fields including auto parts,
bicycles, motorcycles, education, BPO, IT software etc. He has nurtured the
growth of a large number of world-class suppliers and ancillaries. He is an active
Motors Parts, but today it has come long way in the automobile world. SS Motors
Private Limited has always moved with time and expanded its transactions in
accordance with current market scenario and wide its products range, joining hands
with M/s. Hero Honda Auto Limited.
One of the largest two and four wheeler manufacturers in all models in the
world. This was a giant step forward and ensured the company's growth to the auto
market word.
SS Motors is also the pioneer in farm mechanization, dealing I with Farmtrac and
Escorts Tractors, manufactured by M/s. Escorts Limited. SS motors have
established that it is one of the best Dealers in this field. It has also tied up with
other two wheeler manufactures, by this it is able to provide wide range of vehicles
to its customers & also increase its sales.
schemes for Defense Personnel. Kindly avail the special scheme. The other reasons
behind the successful growth of the SS Motors is :
There are good interacting sales personals who give good information to the
customers.
Bikes are brought from customers place if they have to be repaired
There are different good sale offers through out the year which keeps the
sales of the showroom above the mark.
Showroom atmosphere attracts the customers.
Have good advanced technical equipments for servicing the vehicles & the
servicing is provided all the 7day of the week.
Board of directors
Chairman & Managing Director: B.S. Patel
Director: Verandra patel
Product Profile
Hero Honda Ltd. is India’s leading motorcycle manufacturer despite being world’s
largest motorcycle sellers, with am amazing records over the past. It has produced
a wide range of motorcycles to suit every individual in the society. Because Hero
Honda is collaborated with Japan’s leading auto major Honda to give their best
hand in India.
Various Models of Vehicles:-
Cd Dawn
Hero Honda Pleasure
CD Deluxe
Splendor NXG
Splendor super
Splendor Plus
Passion Plus
Glamour
Hero Honda Achiever
Hunk
CBZ Xtreme
Karizma R
SPLENDOR PLUS
Features:
Both by its looks and performance, with a new, clear, bright multi-reflector head
light, multi-reflector tail light and stylish graphics which give it, its contemporary
looks. A well-cushioned low-slung seat helps to rest and ride at the same time. The
suspension that works so well that one probably never find out what happens
between the tires and those bumpy roads. Needless admiring looks a motorcycle
that meets the pollution control standards of this decade. That's the new face of
trust.
The Splendor+ is a newly designed bike which differs from its predecessors in
various facts including multi-reflector head light Disc brake (optional) Multi-
reflector tail light.
Technical Specifications:
Both by its looks and performance, with a new, clear, bright multi-reflector head
light, multi-reflector tail light and stylish graphics which give it, its contemporary
looks. A well-cushioned low-slung seat helps to rest and ride at the same time. The
suspension that works so well that one probably never find out what happens
between the tires and those bumpy roads. Needless admiring looks a motorcycle
that meets the pollution control standards of this decade. That's the new face of
trust. The Splendor+ is a newly designed bike which differs from its predecessors
in various facts including multi-reflector head light Disc brake (optional) Multi-
reflector tail light.
CD-Dawn CD DELUXE
CHAPTER 2
Research Methodology
2. To know, what are the factors influencing the consumer’s while deciding to
purchase the Splendor plus.
3. To provide information helpful to S.S MOTOR [Dealers of Splendor plus] in
planning and implementing of marketing approach towards the buying
motives of splendor plus bike owners and to know their satisfaction.
4. To know the level of satisfaction among the owners and users of splendor
plus.
Sampling Size:
A few people or a unit of population called as sample size was taken to obtain
representative sample of the whole universal.
The data collection of this study was limited to Bangalore city. The researcher has
randomly selected five blocks in Bangalore and each block consists 20 respondents
of splendor plus owners.
Secondary Sources.
Primary Sources:
Primary sources are original sources directly collected data that have not been
previously collected.
Primary data in this research was obtained through questionnaires and direct
interview.
Questionnaires, with close ended questions and few open ended questions.
Through personal interviews – to collect information on responses requiring an
explanation and also information vital to the study but not covered in the
questionnaires.
Secondary Sources:
These are sources containing data that have been collected and compiled for
another purpose. Secondary data for the study is obtained through the company’s
brochure and information from library and through internet source [web site of
Hero Honda Company: WWW. Hero Honda.com.
Validation:
The researches routinely checked the some proportion of questionnaire in order to
check, whether an accurate sample was obtained.
Editing:
In the second step the researches edited the data and some of the questions were
found not necessary in order to extract the relevant information. Hence the
questions prepared are modified in order to extract the relevant information.
Coding:
Pre coding is done which involves identification and classification of each
responses.
Transcription: Since direct tabulation from the edited data is difficult the researcher
used the transcription process [in a long work sheet] rather than obtain tabulation
directly.
Tabulation:
After the Transcription of data is over. Percentages were used to analyze data.
Data collected is depicted through tables, graphs and pie-charts.
No. of Respondents
marid
unma
rid
SUGGESTIONS
Hero Honda should introduce a low price (25000 to 30000) moped.
For the promotion, company makes road-show that will Increase the sales.
Hero Honda should expand the targeted market like introducing special
scooter for women and also considering rural market related offers.
CONCLUSIONS
2. Most of the customers look for mileage, safety, style, overall performance and
cost of vehicle and comfort riding. HMSI should try to improve based on these
factors.
3. Most of the respondents feel the free-service period is not sufficient so the
company can look into this factor.
4. Most of the respondents though feel the price of the splendor plus is reasonable
many of them feel it is quite high, so that HMSI should try to cut the cost will
benefit the students. Remember middle income group are the most constituted
population in the country.
5. The company should Decrease the price of spare parts because it is considered
expensive by the respondents.
6. Splendor plus must increase the efficiency of after sales services to one year.
7. Splendor plus must try to hold on to the respondents of the age group of 20 – 30
years and try to capture the market of younger generation.
8. This can be done by changing the design making it more sleek, modern and
stylish.
9. It was found from the stuffy that splendor plus is made for middle class families.
SUMMARY OF FINDINGS
1. Majority of the respondents who know about splendor plus feel it is vehicle
known for comfort.
2. Majority of the respondents have come to know about splendor plus through ads.
3. Majority of the respondents feel that the price of splendor plus is reasonable.
4. Majority of the respondents feel that the service period for the bike should be
extended to 1 year.
5. Majority of the owners of splendor plus are satisfied with the performance of
their vehicle.
6. Majority of the respondents are in the income group of 25000 & Above.
7. Majority of the respondents are influenced by mileage factor.
8. Majority of the respondents have sold their previous vehicles just to purchasing
of new brand.
9. Most of the respondents are aware of splendor plus.
10. Most of the respondents feel that the advertising strategy is excellent.
11. Majority of the respondents are satisfied about after sale service.
12. Most of the users of splendor plus are in the age group 20-30.
13. Majority of the respondents feel splendor plus is the most aware and preferred
brand.
14. Majority of the respondents are influenced and satisfied by the mileage, safety,
service, maintenance, style factor while purchasing a two – wheeler.
15. Majority of the respondents feel that a reasonable price for a bike is in between
Rs. 35,000 – 40,000
ANALYSIS:
Above table shows that, 36 percent of the respondents feel splendor plus is the
most valuable brand, 30 percent of the respondents feel Hero Honda is the most
valuable brand, 16 percent respondents feel Bajaj is the most valuable brand, 12
percent of the respondents feel Yamaha is the most valuable brand, 6 percent of the
respondents feel T.V.S. is the most valuable brand.
Case Update
Fuel Efficient
Pollution Control/Quality
Technology
Customers, Dealers/Vendors
Market Share
Routes/Delivery – MapInfo
Current Models
100 cc plus segment
Super Splendor & Glamour
150 cc plus segment
Achiever
Scooter Segment – wider customer base
“Pleasure”
Fiscal Year 2009-2010
September 30th, 2009 Rs 1,943.60
SWOT Analysis
Strengths
Weaknesses
R&D is not close to the Hero manufacturing plant
Hero is vulnerable in the joint venture because Honda Motor
Company has so much power
Opportunities
Global expansion into the Caribbean and Central America
Expansion of target market (include women)
Become India’s leader in the scooter market
Threats
Honda Motorcycles and Scooters India can take away market share
and cause joint venture to go sour
Bajaj Motors is a strong competitor
QUESTIONNAIRE
1. Name:……………….
2. Age: a)> 20 yr b) 20-30yr c) 30-40yr d) 40-50yr e) <50yr
4. Educational Qualification:
a) No formal Education b) Matriculation
c) PUC d) Graduation and above
5. Occupation:
a) Student b) Employed c) Business
d) Professional d) Others
9. Why did you replace your previous two wheeler with Hero Honda
Splendor+?
a) Problems with Engine b) Problems with spare parts
c) High fuel consumption c) Low mileage
e) High maintenance cost f) I wanted to buy new brand
g) Others
a) Yes b) No
16. How satisfied with the after sales service you received for your vehicle?
a) Fully satisfied b) Satisfied c) Unsatisfied
18. If you are not satisfied with the duration of free services, what is your preferred
extension of service period?
a) 6months b) 1year c) 1½ Years
19. Which brand you would like to associate with most valuable brand?
a) Hero Honda b) Bajaj c) TVS
e) Yamaha f) Others
BIBLIOGRAPHY