A DISSERTATION PROJECT REPORT ON CUSTOMER PREFERENCE FOR HERO HONDA BIKES IN NOIDA /GREATER NOIDA SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION IN MARKETING (2009-11) AFFILATED TO: (G.B. TECHNICAL UNIVERSITY)

Project Guide: Submitted By: Mr. VIVEK KUMAR NAUSHAD ALI (Faculty- MBA) IV Semester 0917270059 LLOYDINSTITUTEOF MANAGEMENT & TECHNOLOGY
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MBA Roll No. -

PLOT NO. 11, KNOWLEDGE PARK II, GREATER NODA. (U.P.)-201306

ACKNOWLEDGEMENT First of all, I would like to extend my gratitude to almighty God who enlightened me with all the wisdom and knowledge to undertake this dissertation project and it gives me immense pleasure in expressing words of gratitude to all those persons whose contributions in one form or the other cannot be ignored and conspicuously enough it was a great achievement of mine. I also wish to acknowledge my deep and sincere thanks to my internal guide Mr. VIVEK KUMAR for his guidance valuable suggestions.

NAUSHAD ALI

ABSTRACT
The two-wheeler industry is witnessing a phenomenal growth in recent times. The driving factors of the growth of two-wheelers can be many- from fuel efficiency to enjoyment driving to economy driving etc. Many players that have an interest in this business segment- all vie for a great market share- not forgetting the competition in this segment. The two-wheeler industry is being catered on product lines that has to offer motorcycles, scooters and mopeds targeted towards all categories of segments, and therefore the players involved in this business has many interesting facts and figures to offer- as regards the individual profitable growth of the company as well as the industry growth. It is in the light of the above maxim that this dissertation project report is being presented to the readers. Hero Honda, being one of the foremost players in the industry has been producing motorcycles since last two decades- once and till date holding the first position in the industry list of two wheeler players. The dissertation report follows.

GRAPH S. NO.
1

SUBJECT INTRODUCTION
HISTORY OF COMPANY COMPANY PROFILE VISION STRATEGIES COMPETETIVE ANALYSIS BGC MATRIX SWOT ANALYSIS AWARD AND ACCOLADES

PAGE NO. 6 8 14 19 20 23 26 27 30 36 38 39 44 46

CONSUMER BUYING BEHAVIOUR

CHARECTERSTICS OF BUYERS CONSUMER BUYING DECISION PROSSES

3 4

OBJECTIVES OF STUDY RESEACH METHODOLOGY

INTRODUCTION RESEARCH DESIGN SOURCES OF DATA SAMPLING PLAN

5 7 8 10 11

DATA ANALYSIS AND INTERPRETATION FINDINGS AND LIMITATION SUGGESTIONS AND CONCLUSION BIBLIOGRAPHY QESTIONNAIRE

53 67 70 73 76
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1 2 3 4 5 6 7 8 9 10

Age wise Classification Occupation wise Classification Income wise Classification Analysis of Preferring Auto Mobile Age V/S usage of companies Bike Decision maker for purchasing Bike Feature Consideration when purchasing Bike Attributes of Showroom Schemes that Attract most Features of Purchasing Bike

54 55 56 57 58 59 60 62 64 65

INTRODUCTION

Type: Founded: Headquarters: Key People: -

Public company January 19, 1984 Haryana, Indian Brijmohan Lall Munjal (Chairman and managing Director)

Industry: Produce: -

Automotive Motorcycle, Scooters

HISTORY OF COMPANY

BrijMohan Lall Munjal Seeding a Dream

Mr. Brij Mohan Lal Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. Mr. Munjal Started the biz when there was moderate competition in the market, with players like Bajaj, Kinetic, Majestic and many others. Hero Honda being a cash rich company has invested some of its assets in some very big companies namely BHEL Mundari Port & Sez, ICICI Bank, Siemens and REC (Total invts-27.43cr). February, 2010 sales for the countrys largest motorcycle manufacturer, Hero Honda, rose 10.48 per cent to 4,21,378 units, against the 3,81,378 units sold in the same month last year
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"Don't dream if you can't fulfill your dreams'' Brijmohan Lall Munjal is often fond of saying. The founder and patriarch of the $ 2.8 billion Hero Group is your classic first generation entrepreneur. He is a man who started small, dreamt big and used a combination of grit and perseverance to create one of the country's largest corporate groups and the World's No.1 Two Wheeler Company.

Instinctive from a young age, Brijmohan Lall made a rather unusual start in life. Around the time when the freedom movement in India was taking shape in the late 1920s, he walked into a newly opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was only six years old then.

Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a company that provided poor people with basic transport (cycles).

Building Relationships When Brijmohan and his brothers started out, there was no concept of organized dealer networks. Companies just produced, and most dealers functioned like traders. Brijmohan changed the rules of the business by trusting his gut
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instincts; introducing business norms that were ahead of their time, and by investing in strategic relationships.

BrijMohan built a series of bonds and networks with hundreds of family members, vendors, dealers and employees. Much like the Japanese keiretsu system, these networks are now the glue that holds the Hero Group together.

"Thanks to the relationships that we have nurtured so passionately in the Hero Family, the younger generations of some of our bicycle dealers have become dealers of Hero Honda. These relationships have survived through generations through bad times and good times'' the patriarch now reminiscences.

Besides bonding with his vendors and dealers, Brijmohan has been personally responsible for kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former employees are successful entrepreneurs.

Staying Ahead Though not technically qualified in the conventional sense, few of his contemporaries have understood the dynamics of technology better than Brijmohan Lall has. He could always visualize the applicability of technology before others
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could. For example, in the 1980s, when all two-wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-stoke engine - a technology that dramatically increased fuel efficiency and reduced maintenance costs. This technology was one of the biggest reasons for Hero Honda's stupendous success.

Time and again, Brijmohan managed to steal a march over his industry peers. For example, when Honda Motors of Japan was looking for a collaborator in the 1980s, the Hero Group was not high up the pecking order initially as there were other more eligible and established suitors.

Yet it didn't take long for the astute Japanese to realize that the Hero Group and Honda had much more in common than earlier perceived; there a sharp focus on financial and raw material management, and employee turnover was low. Honda officials were also amazed to find that the Munjals were already practicing "Just-intime-inventory" at the time (JIT). It turned out that Brijmohan Lall's aspiration to provide cheap transportation to India's poor by default ensured lean and costeffective operations. This in turn increased vendor efficiency and led to near-zero inventories.

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A Corporate Citizen A frugal upbringing and a value system modeled on the famous Gurukul system - which stresses the sanctity of the teacher-pupil relationship imbibed in Brijmohan a strong sense of social commitment and responsibility.

There is a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana is a modern, bustling city, but Brijmohan has played no mean role in its evolution. Several schools and educational institutions in Ludhiana owe their existence to the Munjal family. The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the Ludhiana Flying Club. He's also set up the not-for-profit Dayanand Medical College and Hospital-an institute now rated as one of the best medical colleges in India, in terms of infrastructure, quality of staff and alumni profile.

In and around Dharuhera, near the first Hero Honda plant, Brijmohan and his family have left their stamp of philanthropy. The Raman Kant Munjal Foundation which Brijmohan set up in memory of his eldest son, today runs a higher secondary school and a very modern and well-equipped 100-bed hospital at Dharuhera. The group has also adopted numerous villages and provides education, vocational training, drinking water, roads, streetlights and sewerage.
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Company Profile

Hero is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. It is a joint venture between India's Hero Group and Honda Motor Company; they are related to Jagdish Lal Munjal.

During the 1980s, 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.

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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.

Hero Honda bikes currently roll out from two globally benchmarked manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants

Together are capable of churning out 3.9 million bikes per year. A third state-ofthe-art manufacturing facility at Haridwar in Uttranchal will soon be commissioned to cope with sustained customer demand. Hero Honda's extensive sales and service network now spans over 3,000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockists and authorized representatives of dealers across different areas.

Hero Honda values its relationship with customers. Its unique CRM initiative, Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors.

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New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To increasingly understand him and make him part of our ongoing business. Customer related initiative has been the increase of warranty period to three years since July 2008. This has attracted a great deal of customer attention. During the year the company has added nearly a hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans for the future In the previous year, the domestic two-wheeler industry entered a period of degrowth. However, this was arrested in 2008-09, largely on the back of Hero Honda's performance. After the blip of last year, the two-wheeler industry went back to a growth phase, largely driven by Hero Honda and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a significant improvement over previous year when the industry had shrunk by 8 per cent.

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Motorcycles continue to constitute the largest chunk of the two-wheeler industry, and during the year in review, accounted for four fifth of sales. Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, highquality scooters possibly has much to do with the revival in demand The entry segment made up of basic 100 cc bikes -Had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc categories-grew by 15.2 per cent. The 125-250 cc categories-grew at 8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that came into this segment during the year.

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The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefited the two wheeler industry.

VISION
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Hero Honda now the leader in the two wheeler industry. Leaders are not born, they evolve over time. It all started on the auspicious. Baisakhi Day the 13th of April 1984, when the Hero Honda Motor Company joined hands. On its journey to take on the No. 1 morale, Hero Honda created some prominent milestones.. This leadership has been achieved only because of its philosophy

to excel in all areas. In fact, passion to excel is a credo of the entire Hero Honda family and is a way of life in Hero Honda. The changing Scenario of increasing competition and the entry of new brands has made the credo even more relevant. It serves as a constant reminder to ensure excellence in providing service to the customer. They are providing outstanding customer service. It is in keeping with Hero Hondas own passionate commitment to provide ultimate customer satisfaction. Today, they consistently meet and exceed all requirements on quality, cost and delivery.

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STRATEGIES & POLICIES

Dr. Brijmohan Lall Munjal, Chairman, Hero Honda Group, is one of the best known first-generation entrepreneurs in India. Dr. Munjal started Hero group right from the scratch along with three of his brothers after shifting base to Ludhiana, India from Pakistan after 1947 and built a business empire of US$ 3.2 billion in a span of nearly six decades comprising of 20 companies in diverse fields including auto parts, bicycles, motorcycles, education, BPO, IT software etc.

The value set, which forms the intrinsic core of his business philosophy, is based on simplicity, honesty, highest integrity & sense of fairness.

Dr. Munjal traversed the road to success with the Hero group following

these principles 2 3 4 Trust the instincts, Deal with people with compassion, Think ahead of time, Show others the way through highest form of corporate citizenship.

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The examples for all of the principles just mentioned are easy to find out. Dr. Munjal, never satisfied being only a bicycle component manufacturer, moved up the value chain by becoming a complete bicycle manufacturer in 1956. Through continuous growth and establishing a nation-wide supply & distribution network which was based on mutual trust and relationship, within 30 years of starting, Hero Group became the largest bicycle manufacturer in the world and it continues to be so till date. Hero Group, under the able leadership of Dr. Munjal, pioneered bicycle exporting from India as early as in 1963. Though exports were initially limited to Africa & Middle East, now Hero Group caters to the US & European markets as well. Adoption of key new technologies and providing best-in-class value & performance are the hall marks of Hero Cycles.

At a time when the Indian two-wheeler industry was known by the rusty Bajaj Chetak and other two-stroke engine vehicles, Dr. Munjal revolutionized the industry by bringing the first four-stroke motorbikes to the table. It was a brilliant strategic move. Since these technologies were not indigenously available, he collaborated with the Honda Motor Company of Japan and Hero Honda Motors Ltd. was formed in 1984 as a JV between Honda & the Hero Group. Its one of the best success stories in India as a collaborative effort between two different cultures and entities. The JV thrived because the roles of the partners were clearly
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demarcated by the leadership Honda to provide the technological inputs and overall guidance, Hero Group to provide the manufacturing resources and foot the distribution efforts. With this, Dr. Munjal ensured cheaper, affordable mobility to the millions of Indians. Not only the four-stroke engines gave better mileage, but these are reliable, less polluting machines which immediately became the darling of the masses and for Govt. regulators as well. He was at the forefront of the campaign by Hero Honda Motors Ltd. - 'Fill it - Shut it - Forget it', which brought forth the value-ofmoney aspect of these bikes and endeared the masses. The testimony to all these efforts came in 2001 when Hero Honda Motors Ltd. became the largest twowheeler maker in the world with a customer base of over 20 million. Though without teamwork & commitment, all these achievements would not have been possible, it was the vision and zeal of the founders which pushed Hero Group to rise higher and higher and touch the horizons.

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COMPETITIVE ANALYSIS
HERO HONDA HONDA BAJAJ Total

Environment -The Joy of buying:

policy: and

Cleaner The joy of using world Productivity Maintenance: Provide safe work - The Joy of selling: The joy of selling world class products environment enhance efficiency work processes - The Joy of manufacturing: The joy of producing world class quality - Quality Policy: Provide value for money through enhanced quality, safety and service of to better

production processes class products environmental performance KEY POLICIES - Quality policy: Provide innovative products and focus on TQM -

Safety Policy: products for to

Provide a safe work environment employees

enhance productivity -Large products PRODUCT LINE - Market Leader in executive segment - A new entrant, so all - Cashes in on the products are relatively success of the
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number in

of -Most products in the -Market leader in all executive segment, Premium and especially scooters Entry segments

segments

new in the markets

previous variants of its large selling

-Does not have own -Dedicated dedicated R&D facility

models R&D -Fully integrated R&D facility

R&D facility at Gurgaon

- Major strength lies in - Major strength - Also faces a threat new of withdrawing Honda development its quality product in quality but not and in new product development

support with HMSI entering the market As per the agreement Not Applicable EXPORT with HMSI, it cannot export to countries where Honda bikes are already present -Aggressive promotion strategies especially for launch BRAND PROMOTION celebrity endorsements and event sponsorships of new bikes Emphasizes product and quality - Extensive use of characteristics advertisements in - No celebrity endorsements; prefers to emphasize on -Lesser presence in the advertising canvas Largest 2 and 3 wheeler exporter, leader Lanka in Sri and

Central America -Aggressive promotion campaigns on new products for

lifestyle aspect Losing market share Has grown above 10% Steadily rising
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MKT SHARE CHANGE

in due

most to

segments in the overall market greater

market share on the back of of superior performance Pulsar

competition

The following diagram summarizes the competitive advantages Hero Honda enjoys thus -

BCG Matrix for Hero Honda

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The BCG matrix shows a link between the growth rate of business and the market share. Question marks in business are with weak market share and high growth rate usually requires cash investment so that they can become Stars. The business with high growth and strong competitive position has opportunities for growth and profit. The Cash cows with a strong competitive position and low growth rate, are usually well established in the market and such enterprises are in the position of making their products at low cost. The dogs are the business with a low growth rate and a weak market share. These businesses are usually not profitable and generally should be disposed of.

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SWOT ANALYSIS OF HERO HONDA

STRENGTHS SWOT ANALYSIS:Huge brand equity among customers R & D due to JV with Japanese giant Honda Models in almost every bike segment Healthy growth in profits Ability to understand customers needs and wants
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WEAKNESSES
Relatively low cash reserves due to massive dividend payouts Virtual absence in the highly lucrative bike segments Imports approximately more than 30 percent of its spare parts requirements Slow to react to market changes late entrants into the 125 cc segment Too much dependence on few models

OPPORTUNITIES
HHML can still make it up by launching a strong model in the 150 cc segment It has opportunity to pick pace in the 125 cc segment which is relatively unexploited Exports market can form a larger part of its revenues Advertisements appealing to youth can do wonders for the company Cruiser bike segment is unexplored by HHML
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THREATS
All major bike makers in the world are lining up for India The growth in 2 wheeler market is slowing down Absence in the 150 cc could harm the companys growth plans Low cash reserves HHML is losing foothold in exports market which is now dominated by Bajaj

AWARDS AND ACCOLADES

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2010 ET Awards for Corporate Excellence - Hero Honda is the winner of the Company of the Year" award for 2010. 2009 NDTV Profit Business Leadership Award 2009 - Hero Honda Wins the C 2008 Hero Honda is the World No. 1 two-wheeler co. for the 8th year in a row Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to Hunk in Bike category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards - Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe No. premium motorcycle CBZ Extreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category)
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"Bike Technology of the Year" - Glamour PGM FI "Auto Tech of the Year" - Glamour PGM FI 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 Top 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 Corporate Social Responsibility Award. Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006:

Splendor Plus (Executive) CD Deluxe (Entry)

Pleasure (Gearless Scooters) Splendor & Passion - Top two models in two wheeler category by ET Brand

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Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006. Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council. The NDTV Profit Car India & Bike India Awards 2006 in the following category:

Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc 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 - India's most preferred two-wheeler brand

by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine.

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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 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR 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.

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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. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, 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. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate
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Performance to Hero Honda Motors Ltd.

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CONSUMER BUYING BEHAVIOUR

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CONSUMER BUYING BEHVIOUR

The main aim of marketing is meet and satisfy target customers need and wants buyer behavior refers to the peoples or organization conduct activities and together with the impact of various influence on them towards making decision on purchase of product and service in a market. The field of consumer behavior studies how individuals, groups and organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desires understanding consumer behavior and knowing customer are never simple. The wealth of products and service produced in a country make our economy strong. The behavior of human being during the purchase is being termed as Buyer Behavior. Customer says one thing but do another. They may not be in touch with their deeper motivations. They are responding to influences that change their mind at the last minute. A buyer makes take a decision whether save or spend the money.

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Characteristic of Buyer Behaviors

The chief characteristics of the buyers behaviors are as follow:-

(1) It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them. (2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands. (3) Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot. (4) The individuals specific behaviors in the market place is affected by internal factor, such as need , motives, perception, and attitudes, as well as by external of enviourmenatal influences such as the family social groups, culture, economics and business influences.

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Consumer Buying Decision Process

1. Problem identification:-

The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest.

2. Information Search:The consumer tries to collect information regarding various products/service. Through gathering information, the consumer learns about completing brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade fair etc. Marketers should find out the source of information and their relative degree of importance to the consumes.
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Personal Sources: Family, friends, neighbor, as quittances. Commercial Source: Advertising, sales persons, dealers, packaging, displays. Public sources: media, consumer, rating organizations. Mass

3.

Evaluation of alternative:-

There is no single process used by all consumers by one consumer in all buying situations. There is several First, the consumer processes, some basic concepts are: First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions.

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Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy. If the decision is to buy. The other additional decisions are: Which types of bike he must buy? From whom to buy a bike? How the payment to be made? And so on. The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand.

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5. Post Purchase Behavior:After purchase the product, the consumer will experience the same level of product. The Marketers job not end when the product is buying must monitor postpurchase satisfaction, post-purchase action, post-purchase use and disposal.

6. Post Purchase Satisfaction:The buyer, satisfaction is a function Of closeness between the buyer, expectation and the products Perceiver performance. The larger the gap between expectation and performance, the greater the consumer dissatisfaction.

7. Post purchase Action:The Consumer, satisfaction or dissatisfaction with the product influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and return the product.

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8. Post-Purchase Use or Disposal:-

The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

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OBJECTIVES OF STUDY

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OBJECTIVES OF STUDY

To know consumer behavior for purchase of Hero Honda bikes.

To know market position of Hero Honda bike in the market.

To study various promotional strategies and know about the current strategies keeping in mind the cut throat competition and arrival of Hero Honda Company in India.

To focus on comparative study of different products of Hero Honda company Different range of Products; their success and failure. To study overall financial performance of Hero Honda Company.

main scope of the s The study is limited to NOIDA /GREATER NOIDA

It also analysis the benefits accruing to the company as a result of those service. This study has been made to find the level of satisfaction the customer has regarding the service provider by bike place.

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RESEARCH METHDOLOGY

RESERCH METHODOLOGY
47

A).INTODUCTION Marketing research is the function which links the consumer, customer and public to the marketers through information used to identify and define marketing, opportunities and problems, generates refine marketing action; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues; designs the method for collection information manages and implements the data collection process; analysis the results and communication the findings and their implication. Research definition: Research is careful inquiry or examination to discover new information and relationship and to expand and to verify exiting knowledge, Research always starts with questions or a problem. Its purpose is to find answer to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies.

B). RESEARCH DESIGN

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Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to research question and to control variance. At the outset may be noted that there are several ways of studying and tackling a problem. There is no signal perfect design. The research design can be classified in to true broad categories: (A) (B) (C) Exploratory Descriptive Casual

Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading available. It does not have to change his focus of direction, depending on the availability of new ideas and relationship among variables. Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a high degree of scientific skill on the part of the researcher. Casual research helps in determined cause and effect relationship. Between two or more variables.

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The present study seeks to find out the consumers attitude towards buying of bike. The study also aims at findings out the drawbacks of the marketing set up of Hero Honda PVT. LTD. So this makes the study a descriptive one.

C). SOURCE OF DATA

A) PRIMARY SURVEY:-

1.

P/S was done visiting Hero Honda Motors Ltd. Office of Noida and Greater Noida regarding segmentation, targeting and positioning of their brands in the two wheeler sector. A lot of desk research was also done.

2.

P/S conducted by visiting Hero Honda Motors Ltd. And retailers of Hero Honda {Khanna Automobiles & ESS AAY Agencies , auto needs(INDIA) Pvt.Ltd).Basic objective was to know their product price, distribution channel, their customers , their process of segmentation ,targeting and positioning in the problems faced by the customers and lastly their views about the model.

3.

P/S conducted by taking views of the customers using this model of Hero Honda i.e. Hero Honda splendor. Their view points About the model, their grievances/ complaints about it. Last but not the least their views about modification required in it.
50

B). SECONDARY SURVEY:-

1)

S/S was conducted gaining information from different magazines newspaper. And on company from their annual reports and balance sheets and their website.

2) Promotional strategies used at present like sponsoring programme and various event which have no direct bearing on the product. However the main focus is to influence youth- the largest group. E.g. Hero Honda Sa Re Ga Ma Pa. 3) Secondary data are those data which are already collected by someone for some purpose and are available for the present study; secondary data are already collected by the companys records and other librarys books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire.

d).SAMPLING PLAN Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose.

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a).Sample Site:The survey was conducted in NOIDA and GREATER NOIDA. b).Sampling Unit:It means Who is to be surveyed. Here target population is decided and it is who are interested to purchase Bike and sampling frame is developed so that everyone in the target population has known chance of being sampled. So the survey is conducted particularly in NOIDA and GREATER NOIDA.

c). Sample size:For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behavior of bike. The sample size is 100 respondents.

d).Sampling Method:52

A Stratified random sample is one where the population is divided in to mutually exhaustive strata or sub-group and then a simple random is selected within each of strata on age groups, occupation etc. It may be noted that stratification does not means absence of randomness. I use a simple random sampling method.

53

DATA ANALYSIS AND INTERPRETATION

54

1. AGE WISE CLASSIFICTION

Age (in year) 18-20 21-25 26-30 31-35 36-40 41& above Total

No. of respondents 30 37 15 06 07 05 100

Percentage (%) 30 37 15 06 07 05 100

A w Classification ge ise

7, 7% 6, 6%

5, 5% 30, 30% 18-20 21-25 26-30 31-35 36-40 41& above 37, 37%

15, 15%

(Sources: Questionnaire-personal detail) Comment:Above Graph shows are 30% of respondent in age group of 18-20, 37%of respondent in age group of 21-25, 15% of respondent age group of 26-30, 7% and 5% respondent are come in 36-40 and 41&above. 2. OCCUPATION WISE CLASSIFICATION

55

Occupation Servicemen Student Business Profession Others Total

No. of respondents 47 30 12 08 03 100

Percentage (%) 47 30 12 08 03 100

No. of Respondents

O ccupation W C ise lassification

100 80 60 40 20
m e n s io n
N of respondents o. P ercentage (% )

u s in e s

ic e

e rv

O ccupation

(Sources: Questionnaire-personal detail) Comment:Above Chart Shows that 47 respondent are Servicemen out of 100 and 30 are the students. 12 respondents are businessman.

3. INCOME WISE CLASSIFICATION

56

ro

O th

fe s

tu

er s

en

Income Level <= 5000 5000-10,000 10,000-15,000 15,000-20,000 20,000 Above Total

No. of respondents 54 25 11 07 03 100

Percentage (%) 54 25 11 07 03 100

Income Wise Classification

7, 7% 11, 11%

3, 3% 5000 5000-10,000 10,000-15,000 54, 54% 15,000-20,000 20,000 Above

25, 25%

(Sources: - Questionnaire Personal Detail) Comment: Above graph shows that 54% of respondents are income in <=5000 income level, Second 25% of respondents are of 5000-10,000 income level. 11% of respondents are of 10,000-15,000, 7% of respondents are of 15,000-20,000 and remain 3% of respondents above 20,000 of income level. 4. ANALYSIS OF PREFERING AUTO MOBILE
57

Auto Mobiles Shivani Dhru Siddhi Other Total

No. of respondents 20 17 11 52 100

Percentage (%) 20 17 11 52 100

No. of respondents

Shivani 20% Other 52% Dhru 17% Siddhi 11%

(Sources: - Questionnaire) Comment:Above Chart shows that out of 100, 52 % respondents prefer other Automobile to purchase bike. 20 % respondents prefer Shivani Automobile to purchase bike.

5. AGE V/S USAGE OF COMPANIE MOTORCYCLE

58

Age (in year) 120 21-25 26-30 31-35 36-40 41& above Total

Hero Honda 15 23 09 02 01 01 51

Bajaj 05 06 02 00 2 01 16

TVS 03 03 01 01 02 00 10

Yamaha 02 03 03 01 01 02 12

Honda 05 02 00 02 01 01 11

Total 30 37 15 06 07 05 100

A V/S Of Companies Motorcycles ge

25

No. Of Respondents

20 18-20 15 21-25 26-30 31-35 36-40 41& above 5

10

0 Hero Honda Bajaj TVS Yamaha Honda

(Sources: - Questionnaire personal detail) Comment:Above Charts shows that 51 respondents are use Hero Honda Companys Motorcycle. And 16 respondents are using Bajaj bikes.

6. Who is decision maker for purchasing bike in your family?

Sources

No. of respondents

Percentage (%)
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Father Self Mother Others Total

46 42 10 02 100

46 42 10 02 100

Decision maker for purchasing bike

50 40 30 20 10 0
Father Self Mother
10 10 2 2 46 46 42 42

No. of respondents Percentage (%)

Percentage (%) No. of respondents

Others

(Sources: - Questionnaire personal detail) Comment:Above Graph shows that 46 % respondents take decision by father for purchasing bike. And 42 % respondents are take decision by self for purchasing bike.

7. WHAT FEATURES YOU CONSIDERS WHEN YOU PURCHASE BIKE PLEASE GIVES THE RANK.

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Weightage Attributes Price Less maintenance Style Durability Mileage Easy Driving Brand Reputation Color Pick up Total

6 Excellent 30 18 21 10 24 20 17 28 19 187

5 Very Good 20 11 18 17 19 12 19 19 22 157

4 Good 18 17 19 16 14 21 14 18 15 152

3 Average 16 30 10 24 17 23 21 13 20 174

2 Poor 10 13 11 21 09 10 17 10 14 115

1 Very Poor 06 11 21 12 17 14 12 12 10 115

Total 100 100 100 100 100 100 100 100 100 900

Total score 426 358 355 335 381 367 362 406 382 3370

Attributes Price Less maintenance Style Durability Mileage Easy Driving Brand Reputation

Weightage 426 358 355 335 381 367 362

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Color Pick up Total

406 382 3370

Feature of purchasing Bike

11% 12%

12% 11%

Price Less maintenance Style Durability Mileage

11% 10% 11%

11%

Easy Driving Brand Reputation Color Pick up

11%

(Sources: - Questionnaire personal detail & Que-5) Comment: Above chart show that more no of respondents are given more weight age to the price.

8. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM

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Attributes

Excellent Very Good 30 24 35 21

Good

Average Poor

Total

Available

18 24 23

16 15 20

12 10 16

100 100 100

After Service 16 Knowledge 20 Of Sales man

Service Infrastructur e Total

25 12 103

18 29 127

27 20 112

19 17 87

11 22 71

100 100 500

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Attribute of show room

100 90 80 70 60 50 40 30 20 10 0 Available After Service Knowledge Of Sales man Service 30 16 24 35 21 20 18 29 25 12 Infrastructure 18 24 23 27 12 16 10 15 20 16 11 19 17 20 Poor Average Good Very Good Excellent

22

(Sources: - Questionnaire personal detail) Comment:Above chart shows that 30 respondents out of 100 are available who give Weight age on the excellent and second 35 respondents out of 100 are after service who gives Weight age on the Very Good, 23 respondents are Knowledge of salesman who give Weight age on the good, 27 respondents are service who give Weight age on the good, 29 respondents are Infrastructure who gives Weight age on the Very Good.

9. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU MOST.

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no of respondents

Attributes Excellen t Festival 43 Offer Exchange 15 Offer Special 20 Gift Cash 11 Discount Anniversa 14 ry Offer Total 103

Very Good Averag Good e 21 12 14 31 19 21 13 105 29 30 19 12 102 12 20 34 20 100

Poor Total 10 13 11 15 41 90 100 100 100 100 100 500

Anniversary Offer

Cash Discount

Poor Average Good Very Good Excellent

Special Gift

Exchange Offer

Festival Offer 0 20 40 60 80 100

(Sources: -Questionnaire personal detail) Comment:Above graph shows that in festival offer 43 respondents out of 100 are give a excellent, then in exchange offer 31 respondents out of 100 are give a very

65

good rank, in special gift 30 respondents are give a good rank, in cash discount 34 respondents are give a average rank 10. RATE THE FOLLOWING FEATURE YOU HAVE PURCHASE HERO HONDA BIKE

Attributes Mileage Available Price After Service Pick up Style Color Average Total

Excellen Very Good Averag Poor t Good e 31 26 15 18 10 14 25 32 16 13 16 22 42 11 09 20 31 25 14 10 21 18 20 27 167 36 25 24 24 213 17 15 26 20 192 15 26 10 15 125 11 16 20 14 103

Total 100 100 100 100 100 100 100 100 800

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Av e rag e C o lo r S tyle P ic k u p Afte r S e r v ice P rice Av ailab le M ile a g e 0

27 20 18 21 20 16 14 31 22 25 24 25

24 26 15 36 31

20

15 10 26 17 15 14 11 16

14 20 16 11 10 9 13 10

E x ce lle n t Ve ry G o o d G ood Av e ra g e Poor

25 42 32 26 15

18

20

40

60

80

10 0

(Sources: - Questionnaire personal detail)

Comment:Above graph show that respondents give more weight age to the price then after they give more weight age to the mileage before purchasing motorcycle.

67

FINDINGS AND LIMITATION

68

FINDING:-

The study shows that 51 respondents are using Hero Honda. The study show that 48 respondents are come to know from others and 26 respondents are come to know from friends about Hero Honda bike. The study shows that 55 respondents are purchase Hero Honda bike by Loan and 45 respondents are purchase Hero Honda bike by cash. The study shows that 31 respondents are give point to mileage. The study shows that more no. of respondents gives more weightage to price. The more no. of serviceman, Students, Businessmen, and others give more weightage to the price when Professionals give more weightage to the mileage. The study shows that 46 respondents are father take a decision to purchase bike And 42 respondents are self take a decision to purchase bike. The study shows that 30 respondents are give rank to available in show rooms and 35 respondents are give rank to after service. The study shows that 43 respondents are giving excellent to festival offer and 41 respondents are give poor rank to the anniversary offer.

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LIMITATIONS

1. Due to lack of time I was not able to cover many customers. 2. As I reside in Noida and Greater Noida, so customers of Noida and Greater Noida were taken into account. 3. Answers given by the customers may be biased one.
4.

Research work was confined to Noida and Greater Noida.

5. Some time Co-operation from respondents was missing.

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RECOMMENDATIONS AND CONCLUSION

71

RECOMMENDATIONS

1)

Hero Honda should introduce a low price moped. For the promotion, company show make road-show that will

2)

3) Increase the sales. The company should give more concentrate on the advertisement. 4) Hero Honda Company should implement a new strategy to reduce the competition and lead into the bike market. 5) As people expect more mileage per kilometer, company should increase the mileage of the hero Honda bike. 6) Hero Honda should make a sports bike like to Kawasaki Suzuki Hyabusa bikes which can run with maximum speeds.
7)

The consumer preference basically depends upon wider network and better services

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CONCLUSION:-

1.)

Most of the Hero Honda Bikes are purchased by young

generation 18 to 30 because they prefer stylish looks and rest of the models of Hero Honda are purchased more by daily users who needs more average of bikes than looks. 2.) Hero Honda is considered to be most fuel-efficient bike on

Indian roads. 3.) Service & Spare parts are available throughout India in local markets also. 4.) While buying a motorcycle, economy is the main consideration in form of maintenance cost, fuel efficiency. 5.) Hero Honda started growing in rural market rapidly with its ad campaign and promotion strategies in rural market.

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BIBBILOGRAPHY

74

BIBBILOGRAPHY:-

Following sources have been undertaken while competing summer training, here is a glimpse: WEB: 1. www.herohondamotors.com 2. www.trade-india.com
3. 4. 5. 6.

www.projectmonitor.com www.google.com www.msnsearch.com www.automobileindia.com

MAGAZINES & PUBLICATIONS:1. Business World 2. India Today 3. Outlook

75

4.

Marketing research, G.C.Beri, Third Edition, Tata McGraw Hill Publishing Company Limited, New Delhi 2009

BOOKS:-

1.

Kothari, C.R. Research Methodology, New Delhi Vikash Publishing house Pvt. Ltd.

2.

Kotler, Philip, Marketing Management, New Delhi Pearson Education Singapore, 2005, 11th Edition.

76

QUESTIONNAIRE

77

QUESTIONNAIRE CONSUMER SURVEY:-

Name: ______________________

Address: _____________________ Q1. Please mention your age group 18-20 26-30 21-25 31-35

o 36- Above Q2.) Please mention your income group (per annum in thousands)
o o

75-100 125-150

100-125 150-175

o 175 & above Q3.)Do you have own bike? (a) Yes [ ]. (b) No [ ]

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If yes than,

Q4.)Which company bike do you have at present?

Company ____________________

Q5.)Whom do you refer to purchasing bike?

(A) News paper (B) Friends

[ ] [ ]

(C) TV advertisement [ ] (D) others [ ]

Q6.)Who is decision maker for purchasing bike in your family?

(A) Father (B) Self

[ ] [ ]

(B) Mother (D) other

[ ] [ ]

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Q7.) Gender Male Female

Q8.) Martial Status Married Unmarried

Q9.) Please mention your occupation Officials Student Clerical or Salesmen First Jobbers Retired

Q10.) Name three motorcycle companies that come to your mind Hero Honda Motor Ltd. Bajaj Auto Ltd.

Yamaha Motors Ltd.

Royal Enfield TVS Ltd. Q11.) What are the things that you look while purchasing a bike? Fuel efficiency Looks
80

Low maintenance cost Reliability(less chances of breakdown) Low price

Q12.) How did you get to know about Hero Honda that you having at present? Family information Friends recommendation Dealers recommendation Q13.) Which other bike would you have preferred to buy? Yamaha motors TVS motors others Bajaj motors

Q14.) Prefer Hero Honda splendor than other bike because of: Fuel economy

Less physical efforts Better looks Low maintenance cost Q15.) Would prefer TVS apache to Hero Honda CBZ because of:

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 Fuel economy Price Brand image Low maintenance cost Q16.) What is the image of HERO HONDA in your mind? Economical Durable Smooth Bike Safe Bike Rough and Tough

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