Dissertation Report

ON

MARKETING STRATEGIES & BUSINESS

PROMOTION
OF HERO MOTOCORP'S LTD.

In Partial Fulfillment of Award of Bachelor of Business Administration

By
HARIOM SHAKYA
A30106414076
BBA
(2014-2017)

Under the Supervision of

MS. MAMTA CHAWLA
Faculty Guide
Amity Global Business School, Noida

AMITY GLOBAL BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

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 SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

DECLARATION

The title of Dissertation Report entitled “MARKETING STRATEGIES & BUSINESS

PROMOTION OF HERO MOTOCORP'S LTD.”.

I declare that the work presented for assessment in this Dissertation Report is my original
work, that it has not previously been presented for any other assessment and that my debts
(for words, data, arguments and ideas) have been appropriately acknowledged. The summary
of report is attached along with for reference.

Date: Hariom Shakya

Place: Noida Enroll.No: A30106414076
BBA

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 CERTIFICATE

I, Mamta Chawla hereby certify that Hariom Shakya student of Bachelor of Business
Administration at Amity Global Business School, Amity University Uttar Pradesh has
completed dissertation on “MARKETING STRATEGIES & BUSINESS PROMOTION OF
HERO MOTOCORP'S LTD.” under my guidance.

MAMTA CHAWLA
Amity Global Business School

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 ACKNOWLEDGEMENT

Knowledge is an experience gained in life, it is the choicest possession, which should not be
shelved but should be happily shared with others”.

As per my dissertation report entitled “MARKETING STRATEGIES & BUSINESS

PROMOTION OF HERO MOTOCORP'S LTD.” could not have been possible, within
conceivably the shortest possible time, but for the help, guidance and advice provided by my
mentors.

I am thankful to Ms. Mamta Chawla, Faculty Guide, AGBS, Amity University, Noida, Uttar
Pradesh under her valuable guidance and support at all time throughout my dissertation
report completed at time.

HARIOM SHAKYA
Enroll.No: A30106414076

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 TABLE OF CONTENTS:-
 Executive Summery-------------------------------------------------

 Mission Statement---------------------------------------------------

 Over view Automobile Sector -------------------------------------

 Company Profile -----------------------------------------------------

 International scenario-----------------------------------------------

 Marketing Strategy--------------------------------------------------

 Product Profile & placement--------------------------------------

 Objective of study---------------------------------------------------

 Methodology----------------------------------------------------------

 Scope and Limitation----------------------------------------------

 Product Range--------------------------------------------------------

 Fact and Figure (Analysis)-----------------------------------------

 SWOT Analysis

 Findings-----------------------------------------------------------------

 Conclusion ------------------------------------------------------------

 Bibliography----------------------------------------------------------

 Questionnaire--------------------------------------------------------

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 EXECUTIVE SUMMARY

The objective of my project report was to have a complete inside look in Automobile
industry. The study is done to understand Marketing Stg. and Business Promotion of HERO
MOTOCORP'S and what strategies are required to increase customers base further along
with an edge over competitors.

For this purpose I conducted a market survey to know about the various players and their
preference in the industry taking into consideration the various services and the services
related services provided by them. The stepwise methodology used included sampling,
secondary research, survey research done through personal interviews and interaction with
people of different industry. The data was then tabulated and analyzed. The information thus
used by the survey was then to discover the reasons for brand preference.

The report commences with a brief profile about the Automobile industry and the players in
the Indian market. A brief profile about HERO MOTOCORP'Shas also been given which
carves the way for the introduction of the various services offered by the company and their
various features. The research methodology and the data analysis are interpreted using
various statistical tools.

MISSION STATEMENT

“We, at Hero Motocorp's, are continuously striving for synergy between technology, systems,
and human resources to provide products and services that meet the quality, performance,
and price aspirations of our customers. While doing so, we maintain the highest standards of
ethics and societal responsibilities, constantly innovate products and process, and develop
teams that keep the momentum going to take the company to excellence in the new
millennium”.

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 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

 The Automobile sector is one of the fastest growing manufacturing sectors in India.
 In the 90s the industry witnessed an average growth rate of above 20 percent.
 Indian Automobile Industry is characterized by a very high percentage (75 per cent)
of two wheeler production, ranking second only to Taiwan.
 The world leaders in the sector are evincing keen interest in establishing
manufacturing facilities for manufacturing and assembling components.
 A politically stable and vibrant State, Andhra Pradesh is centrally located with the
support of seaports, international airports, assured and reliable power supply,
abundant water, broad base of auto component manufacturers, highly trained, skilled
and disciplined manpower and is therefore, the preferred location for Automobile
industries.
 The interest of the state has been duly noted by Global Auto Majors, who have
indicated their interest to consider Andhra pradesh for establishing manufacturing
facility.
 The Government of Andhra Pradesh invites leaders in the industry to set up
manufacturing facilities to manufacture vehicles or vehicle components in the State.
The ideal places to locate companies in the Auto Sector are the Hyderabad-
Zaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and
Vijayawada-Guntur corridors.
 The Government is also formulating an Auto Policy, which would give a proper
direction to the growth of the sector.
 There are more than 20 auto –component manufacturing companies in the State,
manufacturing components such as grey-iron castings, precision aluminium castings,
leaf springs,oils and lubricants, diesel fuel injection equipment, electronics and auto
electronics and auto electrical, front axles, gears, forging, machined components,
pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter
motors, alternators, electronic regulators, high pressure die castings, clutch covers,
fuel filters ,etc.

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  Most of these components are presently being supplied to Hero Honda, TVS Suzuki,
Escorts Yahama, Bajaj and others. Amaron Batteries are manufactured in Chittoor
district. Around 119 components manufacturers have been certified for ISO 9000
quality standards and seven companies achieved the QS 9000 quality standard set by
government and motors association. Automobile is one of the largest
industries in global market. Being the leader in product and
process technologies in the manufacturing sector, it has
been recognized as one of the drivers of economic growth.
During the last decade, well directed efforts have been
made to provide a new look to the automobile policy for
realizing the sector's full potential for the economy.
Aggressive marketing by the auto finance companies have
also played a significant role in boosting automobile
demand, especially from the population in the middle
income group.
 Our premise is the service quality in before and after will buy from the firm that the
perceive offers the highest customers delivered value. Customers delivered value is
the difference between total customer value & total customer cost.(or) service. Total
customer cost is the bundle of costs customers expect to incur in to Osmania Journal
of Management evaluating, obtaining, using and disposing of the product / service.

If the performance exceeds sex petitions the customer is highly satisfied or

delighted. Many companies are aiming for high satisfaction because they are much less
ready to switch. Buyer’s expectations formed on the basis of past buying experience ,friend’s
& associates advice and marketers and competitor’ information and promises. If market
raise expectations too high, the buyer is likely to be disappointed .Even if the company sets
expectations too low, it won’t attract enough buyers. So the expectations should match the
performance.

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 Two-wheeler segment is one of the most important components of the automobile
sector that has undergone significant changes due to shift in policy environment. The two-
wheeler industry has been in existence in the country since 1955. It consists of three
segments viz. scooters, Motorcycles and mopeds. In India there are some MNC’s and Indian
company dealing in automobile sector. The main key players who are dealing in this sector
are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero MotoCorp'sis the biggest player in
this sector in India as well as in the world and playing a very important role in two wheeler
automobile sector. Hero Honda, Bajaj and TVS are the Indian companies and Yamaha &
Honda are international automobile brand.

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COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero MotoCorp's Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. In 2001, the company achieved the
coveted position of being the largest two-wheeler manufacturing company in India and
also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar
year. Hero MotoCorp Ltd. continues to maintain this position till date.

The story of Hero MotoCorp'sbegan with a simple vision - the vision of a mobile and an
empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity,
reflects its commitment towards providing world class mobility solutions with renewed
focus on expanding company's footprint in the global arena.

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs
and aspirations for mobility, setting benchmarks in technology, styling and quality so that
it converts its customers into its brand advocates. The company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners.
Hero MotoCorp's key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building activities
and ensure customer and shareholder delight.

Hero MotoCorp'shas a reputation of being the most fuel-efficient and the largest selling
Indian motorcycle. Its commitment of providing the customer with excellence is self-evident.
A rich background of producing high value products at a reasonable price led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer.
It was this affinity in working cultures of Honda Motor Company of Japan and the Hero
Group that resulted in the setting up of Hero MotoCorp's Ltd. A relationship so harmonious

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that Hero MotoCorp's has managed to achieve indigenization of over 95 percent, a Honda
record worldwide.
Tactical promotions and excellent marketing helped Hero MotoCorp's establish itself as an
intelligent purchase. Its unique features like fuel conservation, safety riding courses and
mobile workshops helped the group reach in the interiors of the country.
Finance services helped facilitate purchase, as did an efficient dealer network across the
country.Well-entrenched in the domestic market, Hero MotoCorp's Ltd. turned its attention
overseas, and exports have been steadily on the rise.Over the years, the Company has
received its share of accolades, including the National Productivity Council's Award ( 1990-
91), and the Economic Times - Harvard Business School Association of India Award, against
200 contenders.

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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 MotoCorp 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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 KEY POLICIES -
A company that believes in maintaining ecological standards along with business
standards. "We must do something for the community from whose land we
generate our wealth." - Chairman Dr.Brijmohan Lall
Munjal..
At Hero MotoCorp, our goal isn't limited to business but encompasses the broader
spectrum of serving humanity through social initiatives. Hero MotoCorp takes a stand
as a socially responsible enterprise respectful of its environment. Hero MotoCorp has
been strongly devoted not only to environmental conservation programs but also
expresses the increasingly inseparable balance between economic concerns,
environmental and social issues faced by business. A business must not grow at the
expense of mankind but must serve humankind at large.
ENVIRONMENT POLICY
We at Hero MotoCorp have been committed to demonstrate excellence in our
environmental performance on a continuous basis, as an intrinsic element of our
corporate philosophy
To achieve this we commit ourselves to:
 Integrate environmental attributes and cleaner production in all our business
processes and practices with specific consideration to substitution of hazardous
chemicals and strengthening the greening of supply chain.
 Continue product innovations to improve environmental compatibility.
 Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as
reasonably achievable).
 Institutionalize resource conservation in the areas of oil, water, electrical
energy, paints and chemicals.
 Enhance environmental awareness of our employees

QUALITY POLICY

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 Excellence in quality is the core value of Hero MotoCorp philosophy.
We are committed at all levels to achieve high quality in whatever we do, particularly
in our products and services which will meet and exceed customer's growing
aspirations through:
 Innovation in products, processes and services..
 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.

SAFETY POLICY
We believe that safe work practices lead to better business performance, motivated
workforce and higher productivity.
We shall create a safety culture in the organization by:
 Integrating safety and health matters in all our activities.
 Promoting safety and health awareness amongst employees, suppliers and
contractors.
 Continuous improvements in safety performance through precautions besides
participation and training of employees.
 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.

Advantages of Corporate Sales at Hero:

 Single window processing for delivery at multiple locations
 No running around for documentation
 Attractive finance options
 Hero MotoCorp Passport - Unique CRM Program
 Bulk Incentive Schemes

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 INTERNATIONAL SCENARIO
A two-wheeler is used as a personal/family vehicle or a goods carrier in the developing
countries, whereas it is confined to sports/racing (heavy motorcycles) or short distance
shopping (mopeds) in developed countries.

The world two-wheeler market is dominated by Japan. Japanese manufacturers account for
around 65% of the total two-wheeler production in the world. However, production within
Japan has been declining due to lower domestic demand and shift in manufacturing base
outside the country. Japan is also the world's largest exporter of two-wheelers in the world
controlling around 75% of the world trade. Its major markets are China, USA and Europe. In
terms of player positions, Honda Motors Corporation, Yamaha Motors and Suzuki Motors
Corporation share the top three slots in the world two-wheeler market. The table below
shows the production and sales figures of motorcycles and scooters in Japan during the past
decade More than 50% of the production in Japan is exported out of the country. This
scenario contrasts directly with the Indian scenario. In India, only about 2% of the production
in FY99 were exported. The Asian continent is the largest user of two-wheelers in the world.
This is due to poor road infrastructure and low per capita income, restrictive policy on car
industry.

The technology for two-wheelers is not as well developed as for car industry. This is due to
oligopoly between top five players in the segment, compared to thirty manufacturers in the
car industry.

There has been a great change in the customer preferences from the erstwhile all pervasive
scooters to the sleek motorcycles and other high-powered trendy motorbikes.

Numbers speak much more about the loss in volumes of scooter sales. The shift has occurred
in a short span of time, in fact so short that many players in the industry are yet to fully
acknowledge the shift. They are yet to mold their product portfolios to take advantage of this
shift. As recently as 1994, scooter sales accounted for 48 percent of the total two-wheeler
volumes. By 2001, however, their share in the two-wheeler sales fell to less than 25 percent
by 2001. The tables turned in favor of motorcycles, which accounted for 57 percent of the
total two-wheeler volumes for the 2001 fiscal rising from a dismal 28 percent in 1994 and
this trend of increased sales of motorcycles continued. The production and sale of
motorcycles has been continuing at a pace of 20 percent and 25 percent respectively during
the first half of the current fiscal year.

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One of the factors that contributed to the steep decline of scooter sales in 2001 is the sales tax
rationalization in the budget of 2001, which resulted in a sharp fall in the sales of geared
scooters in 2001. This raised duties on geared scooters in western region of the country,
which accounts for a substantial portion of the industry's volumes. The trends of sales in
two-wheeler industry as a whole are on the decline. From a growth rate of more than 20
percent during the fiscal of 1995, the industry has come down to a zero percent growth rate
by the fiscal year 2001. The scooters and the mopeds segments have been on the decline for
some time now. But the robust growth in the motorcycle segment has been the only saving
grace in the two-wheeler industry.

The period between 1994-2001 has been characterized by the software boom, private
industry emerging as a substantial employment provider and coming of age of the generation
that had started to feel comfortable and adopt western culture from the satellite television.
The young earning men today increasingly prefer motorcycles to scooters unlike the
generation of their fathers where a geared scooter was "the two-wheeler". Even in the rural
market, consumers prefer motorcycles for their sturdiness and ability to sustain bad road
conditions. This has added up to the costs of scooters while most motorcycles are in tandem
with these new norms.

Adding to the woes of geared scooters, a number of ungeared scooters are flooding the
market. Vehicles in this segment such as TVS Scooty, Bajaj Sunny, and Kinetic Honda have
found an instant market with the elderly population, women and teenagers, who find these
vehicles more comfortable with fewer hassles as compared to the geared scooters. The sales
of these ungeared scooters have also been on the rise, registering a growth rate of around
eight percent in the last financial year. In addition, the segment of buyers who would have
gone for mopeds five years earlier are today showing interest towards the ungeared scooters,
adding up to the volumes of these vehicles. The obvious reason is that the pricing of both
these segments of vehicles is so close that the borders are fast getting wiped away in the
minds of consumers. One who is going in for a moped would not hesitate to spend a thousand
or two more to get a scooterette offering better features.

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 HERO MOTOCORP'S
"Hero", the brand name symbolizing the steely ambition of the Munjal brothers, came into
being in the year 1956. From a modest manufacturer of bicycle components in the early
1940's to the world's largest bicycle manufacturer today, the odyssey was fueled by one
vision - to build long-lasting relationships with everyone, including workers, dealers and
vendors. This philosophy has paid rich dividends through the years.

Hero, a name synonymous with two wheelers in India is today a multi-unit, multi-product,
geographically diversified Group of companies. Through fully integrated operations, the
Munjals roll their own steel, make critical components such as free wheels for their bicycles,
and have the foresight to simultaneously diversify into myriad ventures, like product
designing, IT enabled services, finance and insurance, just to name a few.

Like every success story, Hero's saga contains an element of spirit and enterprise; of
achievement through grit and determination, coupled with vision and meticulous planning.
Throughout its success trail, the Hero Group and its members have displayed unwavering
passion of setting higher standards for themselves and delivering simply the best to their
customers.

The Hero Group philosophy is: "To provide excellent transportation to the common man
at easily affordable prices and to provide total satisfaction in all its spheres of activity."
Thus apart from being customer-centric, the Hero Group also provides its employees with a
fine quality of life and its business associates with a total sense of belonging.

"Engineering Satisfaction" is the prime motive of the Hero Group and it has become a way
of life and a part of the work culture of the Group. This is what drives the Group to seek newer
vistas, adopt faster technology and create quality driven products to the utmost satisfaction of
customers, partners, dealers and vendors.

Today the Hero Group has a number of accolades and achievements to its credit … yet
consumer requirements and newer technologies provide fresh challenges every day, and at
Hero the wheels of progress continue to turn.

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Hero MotoCorp'sis the largest player in the motorcycle segment. Its Focus is on
manufacturing mobikes which are contemporary in design and style and as well as
eco friendly to environment. Hero MotoCorp's ltd was the first company to
concentrate manufacturing fuel-efficient bikes instead of powerful bikes. The
company has a comprehensive range of bikes in its stable

1. CD-100DX

2. CD-100SS

3. Splendor

4. Street Smart

5. Sleek

6. CBZ,

7. Passion.

However ‘ Street ‘ failed to evoke market fancy while sporty ‘ CBZ ‘ dropped down
the popularity chart in early 90s. Hence the company continues to rely on urban –
centric ‘ Splendor ‘; its primary revenue spinner with the USP of fuel – efficiency,
which accounts for over 60-70%of its sales. The " Passion " launched in mid -Jan
2001has had a resounding success contributing to 26% of total volumes and has not
cannibalized the volumes of ‘ Splendor ‘. With the sale of over 1mn motorcycles in
2000-01, the company has also become the largest volume seller among all Honda
Companies and ventures in the world. The company has now shifted its focus towards
launch of new products. HHML launched a 100cc motorcycle ‘ Joy ‘ in
FY2001delivering 65 to 70 km per litre in city driving conditions. The company hopes to
achieve sales of 8,000 to 10,000 units of Joy per month. The company is also planning to
launch motorcycles in 200cc –300 cc category and is looking at the possibility of
introducing a " luxury motorcycle " in the same category. HHML has planned an
additional capacity of 1.5mln units pa at Dharuhera plant by investing Rs3bn ($65mn) to
meet the huge and increasing demand for motorcycles. The Honda Motor Corporation of

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Japan has set the annual sales target of 1.75 mln 2-wheelers (25% of worldwide target)
for 2003 in India, to be contributed to the extent of 1.5 mln by HHML and the balance by
its wholly owned subsidiary Honda Motorcycles & Scooters India Pvt. Ltd. HMSI
launched ‘ Activa ‘ the 4 stroke automatic medium-sized , 102-cc scooter in July 2001
and is looking at volumes of about 50,000 from its first product. It also plans to launch
another scooter next year are also in the offing in order to increase the sales volumes to 1
lakh units.

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MARKETING STRATEGIES OF HERO MOTOCORP'S Ltd.
By everyone. The farmer in Punjab. The fisherman in Kerala. The trader in Mumbai. And the
worker in Bengal. Imagine having a place in their hearts. Imagine echoing their heartbeats.
Imagine being part of the great Indian fabric.

That’s the great Indian dream. Of every company and it is what Hero MotoCorp'sis trying to
accomplish through its advertisement and marketing initiatives for the entire range of Hero
MotoCorp'smotorcycles and the latest campaign broadcasted onn all premier channels “ desh
ki dhadkan “ is a step in that direction. Says Navroze D. Dhondy, CEO, Percept Advertising,
which made the 60-second television commercial, "We wanted to say that Hero
MotoCorp'swas more than a bike. It was a friend, something that has been part of your life,
something that has shared your best moments."

So who's the target? Everybody. The models in the advertisement range from children to old
people. The message? Everybody needs a Hero Honda. In the shape of a CD100, or a CBZ,
or a Splendor, or a Street. "Desh ki Dhadkan" is the catch line. "Dhak, Dhak," the message.
"We echo the heart beat of every Indian," the claim. "We were looking for something new.
We wanted to tell the viewer that we were way above the rest," says Atul Sobti, senior vice-
president, marketing, Hero Honda.

Did somebody say new?

The India theme was plugged by Bajaj Auto with its Buland Bharat ki Buland Tasvir. Then
there was Apollo Tyres, Reynolds, Bharti Telecom… A route numerous companies have
treaded time and time again.

"This is a campaign by the right company at the right time. We waited till we were actually
the heartbeat of India," says Sobti. "That's why we went in for an umbrella kind of
advertising," adds J. Narayan, advertising manager, Hero Honda. "We wanted to

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communicate two things. Our market leadership and the joy of ownership. We wanted to
reach our audience at a very emotional level."

Market research carried out all over the country for three months gave the creative team at
Percept the idea for the ad. "Everybody kept talking about how Hero MotoCorp'smotorcycles
were part of their lives," says Dhondy.

That was also the message that the company wanted to communicate. A slew of product
launches had glutted the market, and Hero Honda, the market leader in the motorcycle
segment with a 47 per cent share, wanted to get out of the trap of product oriented or range-
oriented marketing. This was the brief that was given to Percept advertising. And Percept
says that the advertisement was the first and only presentation it had to make.

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

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 PRODUCT PROFILE OF HERO MOTOCORP'S

Hero MotoCorp'sSplendor

The most successful model of Hero MotoCorp's ltd which has caught the fancy of Indian
customers. It’s sale accounts for 40 % of the product profile. The reason for its success is the
unbeatable mileage. A combination of style and economy makes the Splendor is a bike worth
investing in. The latest from the Hero MotoCorp's factory offers both performance and looks.
It has good looks, excellent handling characteristics and a smooth drive over any type of
terrain, thanks to the changes in the suspension at front and near as well as the new frame
design. All these features contribute to the Splendor being one of the best selling four stroke-
two-wheelers in India.

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Hero MotoCorp'sStreet 100

The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The
Hero MotoCorp'sStreet 100 is equipped with unique features like city-clutch, which is
designed specially for city driving. It has rotary gears, which allow the rider to flip directly
from the fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-
and-go’ traffic. A self-starter button comes as an option. The Street can be purchased with a
variety of seat layouts and has options like a water pump, spray can, larger luggage tray, etc.
Its major competitor is the much cheaper K4 from Kinetic. Major plus points that justify the
higher price are the centrifugal clutch and the rotary gears. However, the liberal use of
plastics negates much of the ‘feel good’ factor and has hindered sales to a large extent.

Hero MotoCorp'sCBZ

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The Hero MotoCorp'sCBZ
(pronounced CeeBeeZee) is the latest offering from Hero MotoCorp'sfor the Indian market.
With a 156cc engine, the company claims that the bike has a top speed of 100kph within 5.6
seconds. Though the bike has the largest displacement engine, its top speed doesn’t match up
to many of its competitors. In all other respects, it is a bit too early to decide whether the
CBZ will sell in the same numbers as the Splendor. Though the initial market response has
been good, only time will be the final arbiter. It was the first attempt by the company to target
youth who would love to drive a bikes whch have sleek looks and don`t mind shelling out
few extra bucks for it . Initially it was accepted by the customers very well but due to high
maintenance costs its not a hot seller for the company.

Hero MotoCorp'sCD 100 SS

CD100SS is designed for those who live life in the fast lane, rough and tough, for those who
would love to take a bike on the stumbling village roads. It shares almost all components
with the CD100, except for the additional reinforcement. With larger, reinforced shock

24
absorbers, wider tyres, heavier body weight and engine guard, the Hero MotoCorp'sCD 100
SS weights slightly more, resulting in some cut down in the fuel economy it offers. Minor
problems of the CD100 have been rectified in the SS model. If you wish to ride into the
hinterland, this is the bike for you. It is a modified version of cd 100.

CD 100

Launched in May 1985, it is the legendary " Fill it shut it Forget it" motorcycle. It was India's
first 100cc, 4-stroke motorcycle. Its simple design and fuel-efficient engine is accepted in
both rural as well as urban areas. IT was the first successful model of hero group of
motorcycles and it caught the fancy of the customers by the tag line " Fill it Shut it Forget it”.
Was one of the first models of mobike launched by hero group aith technical tie up with
Honda, Japan.

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 Hero MotoCorp'spassion was launched in 2000 in order to create excitemnent in the
market. IT was an attempt by HHML to modify the splendor in looks. The base
engine was same as of splendor. It was promoted my tagline “BORN IN STUDIO
“thus highlighting the sleek looks of passion. It was a hit among the young crowd and
was very well received in urban markets of India.

PLACEMENT OF HERO MOTOCORP'S

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

and product opportunities along with sensitivity to changing customer needs, form the core
of Hero's marketing strategy and philosophy.

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

network comprising of over 3,500 bicycle dealers, 350 dealers for mopeds and 225 franchise
holders for motorcycles, ensures convenient access to the Group's products across the
country.

Conventionally, very few Indian bicycle manufacturers were interested in exports. However,
the Hero Group's foray into the overseas markets pioneered Indian exports in the bicycle
segment as early as 1963.

26
While initial exports were restricted to Africa and the Middle East, today more than 50
percent of the Group's bicycle exports meet the demands of sophisticated markets in Europe
and America. This is primarily because of appropriate product development and excellent
quality that Hero offers.

The Group has undertaken a steady up gradation of technologies and there has been
diversifications and setting up of newer establishments to meet stringent international
standards.

At the core of it all is a customer-centric scheme of policies and production and the bottom
line is to "Add Value while Engineering Satisfaction."

Its main Models are

 Hero Honda
o cbz
o splendor
o cd100
o cd100ss
o street smart
o passion
o Karizma
o CD dawn
o Ambition 135

27
 1.4 VISION OF THE COMPANY
The Legend of Hero Motocorp's

What started out as a Joint Venture between Hero Group, the world’s largest bicycle
manufacturers and the Honda Motor Company of Japan, has today become the World’s single
largest two wheeler Company. Coming into existence on January 19, 1984, Hero Motors
Limited gave India nothing less than a revolution on two-wheels, made even more famous by
the ‘Fill it – Shut it – Forget it ‘ campaign. Driven by the trust of over 5 million customers,
the Hero MotoCorp'sproduct range today commands a market share of 48% making it a
veritable giant in the industry. Add to that technological excellence, an expensive dealer
network, and reliable after sales service, and you have one of the most customer-friendly
companies.

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

1985.86 43,000 units
1989.90 96,200 units
1998.99 5,30,600 units
1999-00 7,61,210 units
2000-01 10,29,555 units
2001.2 14,25,195 units
2002.3 17,78.392 units
Customer satisfaction, a high quality product, the strength of Honda technology and the Hero
group’s dynamism have developed HTML scale new frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing Director, “We will
continue to make every effort required for the development of the motorcycle industry,
through new product development, technological innovation, investment in equipment and
facilities and through efficient management”.

28
 BOARD OF DIRECTORS

Name of the Directors Designation

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

29
 PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

Company Of the Year awarded by Economic Times Awards =or Corporate
Excellence 2008-09.

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

NDTV Profit Car & Bike Awards 2010 –

2010

Two-wheeler Manufacturer of the Year

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

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

'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009
and Passion Pro adjudged as CNB Viewers' Choice Two-wheeler

2009 Top Indian Company under the 'Automobile - Two-wheelers' Sector by the Dun &
Bradstreet-Rolta Corporate Awards

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

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

NDTV Profit business Leadership Award 2008 - Hero MotoCorp'swins the Coveted
"NDTV Profit Business Leadership award 2008"
TopGear Design awards 2008 - Hunk Bike of the Year Award
2008 NDTV Profit Car india & Bike India Awards - NDTV “Viewers’ choice Award” to
Hunk in Bike category

30
 IndiaTimes mindscape and Savile Row ( A Forbes Group Venture ) loyalty Awards -
“Customer and Brand Loyalty award” in Automobile (two-wheeler) sector

Asian Retail congress Award for Retail Excellence (Strategies and Solutions of
business innovation and transformation) - Best Customer Loyalty program in
Automobile category
NDTV Profit Car india & Bike India Awards - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

 No.1 executive motorcycle Splendor NXG

 No.1 standard motorcycle CD Deluxe

 No. premium motorcycle CBZ Extreme

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

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

 "Bike Technology of the Year"

2007
"Bike of the Year" - CBZ Extreme by overdrive 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 Adjudged 7th Top Indian =ompany by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most
reputed companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility award.
Best in its class awards for each category by TNS Total Customer Satisfaction
Awards
 Splendor Plus (Executive)

31
  CD Deluxe (Entry)

 Pleasure (Gearless scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity
Survey 2006.

Adjudged Top Indian Company by Wallstreet Journal Asia (Top indian Two
Wheeler Company)
Top Indian company in the Automobile - Two Wheeler sector - American Express
Corporate Awards 2006.
Hero MotoCorp'sSplendor rated as india's most preferred two-wheeler brand at the
Awaaz Consumer Awards 2006.

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC
in the 'Automobiles' category.

Bike Maker of the Year Award by Overdrive magazine.

2005
ICWAI National Award for Excellence (Second) Cost Management 2004 in the
private sector category by ICWAI.

10th Motilal Oswal Wealth Creator Award for the most consistent wealth creator for
the period 1991-2005.
2004 Winner of the Review 2005 - Asia's Leading companies Award (3rd Rank amongst

the top 10 Indian companies).

GVC Level 1 (Highest Rating) by CRISIL for corporate Governance.

Adjudged as the Best Value Creator - Large size Companies 2003-04 by The
Outlook Money.

32
 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

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

Company Secretaries of india.
Winner of the Review 2004 Asia 's Leading companies Award (3rd Rank amongst
the top 10 Indian companies).

2003
Most Respected Company in Automobile Sector by Business World.

Bike Maker of the Year by overdrive Magazine.

Bike Maker of the Year by Overdrive Magazine.

33
 1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984
 Company incorporated.
 Technical collaboration signed.
 Foundation stone lay.
 1983 - shareholders agreements signed.

1985
 First motorcycle (Model CD 100) produced.

1987
 Engine plant started.
 1,00,000th Motorcycle produced.

1989
 Sleek model introduced.

1991
 5,00,000th motorcycle produced.
 CD-SS model introduced.
 Economic times – Harward business school award for excellent Governance to Hero
MotoCorp's Ltd.

1993
 Hero group sponsors Hero cup five nations cricket tournament

1994

34
  Splendor model introduced.

1995
 National Award for outstanding contribution to the development of Indian small scale
industry (NSIC Award presented by President of India)
 The analyst award 1995 presented to Hero MotoCorp's Ltd. on being ranked 9th
amongst the most investor rewarding companies in India.

1996
 1000 motorcycle per day production started.

1997
 15,00,000th motorcycle produced.
 Street model introduced.
 Hero sponsored 6th women world cup cricket tournament.

1998
 20,00,000th motorcycle produced.
 1st Hero MotoCorp'sMaster golf championship held at Delhi.

1999
 30,00,000th motorcycle produced.
 CBZ model introduced.
 7th World Cup Cricket tournament sponsored at England.
 Most admired business Baron CEO award conferred upon the Chairman Brij
Mohan Lal Munjal.

2001

35
  Passion and Joy motorcycle launched.
 One million motorcycles produced in one single year.
 50,00,000th bike produced.
 Winner of the review-2000-Asia’s leading companies’ award 2000.
 National productivity award for the best performance in automobile and tractors.
 Sir Jahangir Ghandy medal for industrial peace awarded to Brij Mohal Lal by
XLRI Jamshedpur.

2002
 Declared “company of the year” by economic times business award.
 Chairman Brij Mohan Lal awarded the “entrepreneur of the year” award by
Business standard.
 Ambition launched.

2003
 Declared “company of the year” by economic times business award for
the second time.
 Karizma the sports segment bike launched.
This all says about the golden past of the company and the company is going on
to the path of success.

2004
Hero MotoCorp'sbecame the World no. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark Total sales crossed
a record of 10 million motorcycles

36
2005
New motorcycle model "Achiever" introduced
First Scooter model Hero MotoCorp's- "Pleasure" introduced
Hero MotoCorp'sis the World No. 1 for the year in a row

2006
15 million production milestone achieved
Hero MotoCorp'sis the World No. 1 for the year in a row
New 'Passion Plus' launched
2007
New motorcycle model 'Hunk' launched
20 million production milestone achieved
Hero MotoCorp'sHaridwar Plant inauguration
2008
New motorcycle model 'Passion pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
Splendor completed 11 million production landmark

2009
Splendor completed 11 million production landmark
New motorcycle model 'Karizma ZMR' launched
Silver jubilee celebrations

37
MEDIA USED BY HERO MOTOCORP'S FOR
PROMOTION

 TELEVISION ADVERTISEMENT

 CAMPUS ROCK IDOLS

 HERO MOTOCORP'SSA RE GA MA PA

 MTV HERO HONDA

 ROADIES
MTV Hero MotoCorp'sRoadies has been the longest running adventure reality
series on Indian television and among the only ones that has grown in
popularity, scale and viewership over various seasons

 TERRAQUIZ
The Energy and Resources Institute (TERI) and Hero MotoCorp's Ltd. ,
the world's largest two-wheeler manufacturer, in association with the
Ministry of Environment & forests (MoEF), organises TerraQuiz , a one-
of-its-kind international inter-school environment quiz competition

 PRINT MEDIA

38
 1.6 INDUSTRY SCENARIO

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

Manufacturers Products % of market share

HERO HONDA Motorbikes 75% market share

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

According to the recent results company (Hero Honda) registered a sales increased by 24.5%
over the past years. Same month TVS also registered increase of 45% while the other
companies are not enjoying quiet good increase in sales. While the whole industry registered
an increase of about 17% only. So in present scenario the Hero MotoCorp'scomes as the
leader of whole automobile segment while there is immense competition in industry to get
the highest market share.

39
BRAND AMBASSADOR

The company signed the Indian skipper of cricket team Saurav Ganguly, Virendra Sehvag,
Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand ambassadors joining the add
campaign together to promote “Ambition”. All of these celebrities are the member of Indian
cricket team and very much popular in younger generation. In the last year with the launch of
its new premium bike Karizama Hero MotoCorp'ssigned its new brand ambassador who is a
cine star and is also very popular. He is Hritik Roshan.

Service Your Bike

Hero MotoCorp'shas always taken a lead in terms of defining service standards in two
wheeler industry with an aim to provide "Total Customer Satisfaction" for their valuable
customers across the country and also internationally. We are constantly endeavoring to
improve the quality of our service facilities at our Dealerships. The first and foremost step to
achieve this was creating Automated Workshops at our Authorized Dealerships and Service
Centers across the country.

Automated Workshops
Hero MotoCorp'shas the largest chain of Automated Workshops providing service to their
valuable customers by using latest service technology. Automated Workshops have standard
layout, hydro electric motor cycle lifts, dust free engine rooms and use pneumatic tools and
equipment to ensure quality repair in customers motorcycle. The workshop environment and
usage of pneumatic tools increases mechanics efficiency and their motivation to provide
quality service. The layouts have been standardized to ensure that there is a transparency of
service. The customers can view their motorcycle repair while sitting comfortably watching
TV or relaxing in the customer lounge. Workshop Automation has become a mandatory
service standard for all Hero MotoCorp'sDealers and Service Centers.

TRAINING
40
The regular Technical Training Programmes for Dealers Workshop staff to keep them
updated and refreshed about the latest price technology, product technical details as well as
service and repair procedures to handle customers motorcycle with utmost care as well as to
provide them the service quality of highest order is a focus area at Hero Honda. Hero
MotoCorp'shas six (06) training centers across the country. There are 05 zonal training
centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take care of technical training
requirements of dealers in each zone as well as local technicians. There is a National Training
Center at Dharuhera to take care of all advanced level technical programmes for our dealers
staff and our in house service engineers. Hero MotoCorp'skeeps an organizing Dealers
Mechanics Contest at Zonal Level and National Level to develop competitive spirit among
mechanics as well as in the process to update their skills and product knowledge.

CUSTOMER SERVICE
Hero MotoCorp'skeeps on taking always-new initiatives to maintain its leadership on service
as well as enhance customer satisfaction level on an ongoing basis. Some of the new
initiatives related to customer service are as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers
· Pre Paid Reply Cards
· Automated Mobile Service Workshops
· Mega Millennium Camps
· On the Job Training Programmes
· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our dealers to keep our
customers always in our mind on top priority.

41
Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero MotoCorp'sis also launching very soon a novel concept and a very major initiative -
Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

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

motorcycle delivery process at the showroom. Customers shall be educated on Safe Riding
techniques through various audio visual aids. Safety Instructors shall be imparting riding
skills as well as education to the customers. Dealers shall also conduct a major programme in
their respective towns with the association of local traffic police on a regular basis on safety
education and correct riding techniques.

2.1 OBJECTIVE OF THE STUDY

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

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

competitors.

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

 To study the features of different brands that give a good idea of various products and
services offered by the company.

42
  To understand the competitive environment in which the company is operating and is
desired to meet customer need and satisfaction.

 To provide useful information to the company about the product features of various
competing companies.

2.2 METHODOLOGY

The methodology used in conducting the research work on HERO MOTOCORP'S with
major emphasis on its sales and marketing strategies involve the following steps:

I have selected Hero MotoCorp'sfor my summer training because it is the company that is
growing day by day. It has maximum market share with comparison to its
competitors. And it is the company that gives highest sales and it is also the
highest two-wheeler manufacturer.

PROBLEMS STATEMENTS
Defining the objective is the most important part of any study process. Proper defining of the
problem is a must for proceeding further with the research process. The type of study to be
carried out, the questions to be raised, the sampling procedure to be followed, and the data to
be collected, all depends on a correct understanding of the problem. Also, by clearly focusing
on the real problem, the research job can be simplified and completed with the minimum
cost, effort and data.

AREA COVERED : DELHI

43
Identified problem or the objectives of the research
discussed in the report are:-

1. Developing the research plan:

In this a plan was developed about how to collect the require information i.e. whom to
contact for gathering the relevant data. Data is the foundation of all research. It is the raw
material with which a researcher functions.
Therefore, it requires great care to select the sources of data. Data, or facts, may be obtained
from several sources. Data sources can either be primary or secondary.

A. Secondary data:

The sources from which secondary data was collected:

 Press releases of the company.
 Newsletters and In-house journals.
 Brochures and detailed descriptive leaflets
 Magazines like Business World, Outlook, Auto India, etc.
 Websites such as www.herohonda.com, www.google.com. These were the sources
from which secondary data has been gathered. Most of the information presented in
this report was extracted from the above data sources.

B. Primary data:

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

44
2. Research approach:
It means the way by which the information was collected. Visiting the various places of
Allahabad, getting the questionnaire filled by different individuals.

Beside this, frequent visit to the showrooms of the company was of great help to conduct
the analysis and research work.

3. Contact methods:
Instrument or data collected Forms: It is the method by which data is gathered. It could be
done through various instruments like questionnaires, observations, getting information
from the staff members of the agency, contacting to the motor mechanics was sufficient
enough to conduct the study.

4. Collection of information :
The primary information was collected by face-to-face and direct interviews with the
peoples and the customers. They provide the relevant information regarding the profile of
the company as compared to the other company in the Indian market. Most employees
suggested visiting company’s web site, as it was not possible for them to spare time from
their busy schedules.

The secondary sources of information were various web sites of the companies,
newspapers & magazines such as The Times of India, The Hindustan Times, Business
world, Auto India, etc.

5. Analyzing the information:

The data collected was carefully analyzed. The research and analysis of the information
has been done on the basis of various sales and marketing strategies adopted by the
company during its tenure.

45
6. Reporting and conclusions and recommendations:
This is the most vital part of the work undertaken. After collection and analysis of data, it
was recorded in the form as prescribed. The major part of the report is the findings. The
finding also includes charts, tables and diagrams etc. The report also mentioned the
limitations of the project undertaken. Then conclusion has been drawn out of the findings
and various recommendations have been given at the end of the report. Certain tables on
the basis of which the findings were made have been included in the appendices section
followed by the bibliography.

2.3 SCOPE OF THE STUDY

Hero MotoCorp's is spreading its wings and widening its business horizon to reach and serve
customers at new centers in the year ahead. The company services are backed by a highly
motivated and technology driven team to achieve customers need, product expertise and
geographic reach.

The study is oriented towards the concept of different brands offered by Hero MotoCorp's
and its competitors to its customers. The company has endeavored to move fast in providing
market solution, which maximize customer needs and convenience, using multiple delivery
channels in composing the agency network, service centers, lower service cost and increased
efficiency.

2.4 LIMITATIONS OF THE STUDY

As said a basic research was conducted at the company to enable the company to assess how
far the customers are satisfied with product and services of Hero Honda. During the course of
the study the following limitations were observed:

46
  The method will be unsuitable if the number of persons to be surveyed is very less as
it will be difficult to draw logical conclusions regarding the satisfaction level of
customers.

 Interpretation of data may vary from individual depending on the individual

understanding the product features and services of the company.

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

result may deviate.

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

 Since all the products and services are not widely used by all the customers it is
difficult to draw realistic conclusions based on the survey.

PRODUCT RANGE OF HERO MOTO

CBZ

The Hero MotoCorp'sCBZ (pronounced

CeeBeeZee) is the latest offering from Hero MotoCorp'sfor the Indian market. With a 156cc
engine, the company claims that the bike has a top speed of 100kph within 5.6 seconds.
Though the bike has the largest displacement engine, its top speed doesn’t match up to many
of its competitors. In all other respects, it is a bit too early to decide whether the CBZ will
sell in the same numbers as the Splendor. Though the initial market response has been good,
only time will be the final arbiter.

Technical Specifications

47
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"

Splendor
A combination of style and economy makes the Splendor is a bike
worth investing in. The latest from the Hero MotoCorp'sfactory
offers both performance and looks. It has good looks, excellent
handling characteristics and a smooth drive over any type of terrain, thanks to the changes in
the suspension at front and near as well as the new frame design. All these features contribute
to the Splendor being one of the best selling four stroke-two-wheelers in India. It also meets
all the current pollution standards. A healthier beat, springy ride and overall low maintenance
has aided in the record-breaking sales of this bike.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc

48
Tachometer : No
Max Power : 7.2b hp@8500 rpm
Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"

S
tr
e
e
t
1
0
0
The Street 100 is Hero Motor's latest two-wheeler on offer in the step-through category. The
Hero MotoCorp'sStreet 100 is equipped with unique features like city-clutch, which is
designed specially for city driving. It has rotary gears, which allow the rider to flip directly
from the fourth gear to neutral once the bike has come to a halt, a must for the present ‘stop-
and-go’ traffic. A self-starter button comes as an option. The Street can be purchased with a
variety of seat layouts and has options like a water pump, spray can, larger luggage tray, etc.

49
Its major competitor is the much cheaper K4 from Kinetic. Major plus points that justify the
higher price are the centrifugal clutch and the rotary gears. However, the liberal use of
plastics negates much of the ‘feel good’ factor and has hindered sales to a large extent.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : N/A
Max Power : N/A
Wheel base : 1,205mm
Ground Clearance : 133mm
Ignition : Electronic
Dry Weight : 101kg
Fuel tank Capacity : 11litres
Battery : 12V
F/R suspension : Telescopic
R/R suspension : Swing arm and Hydraulic dampers
Max Speed : N/A
Front Tyre size : 2.25x17"
Rear Tyre size : 2.50x17"

CD100SS

The CD100SS is designed for those who live life in the fast lane, rough and tough, for those
who would love to take a bike on the stumbling village roads. It shares almost all
components with the CD100, except for the additional reinforcement. With larger, reinforced
shock absorbers, wider tyres, heavier body weight and engine guard, the Hero
MotoCorp'sCD 100 SS weights slightly more, resulting in some cut down in

50
the fuel economy it offers. Minor problems of the CD100 have been
rectified in the SS model. If you wish to ride into the hinterland, this is
the bike for you.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.0bhp@8000rpm
Wheel base : 1,220mm
Ground Clearance : 165mm
Ignition : Electronic
Dry Weight : 103kg
Fuel tank Capacity : 10.1litres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 85kph
Front Tyre size : 2.57x18"
Rear Tyre size : 3.00x18"

Features :

Engine 4-stroke, single cyclinder, air-cooled

Displacement 97.2cc
Clutch type Manual
Clutch Primary -
Clutch Secondary Multi-plate wet
Transmission 4-speed constant mesh

51
Final Drive Roller chain
Ignition Electronic
Starting Kick starter
Frame T-Bone type
Suspension (Front) Telescopic hydraulic fork
Suspension (Rear) Swing-arm with hydraulic dampers
Dimensions (LxWxH) 1885x770x1060mm
Wheel Base 1210mm
Ground Clearance 135 mm
Dry Weight 95 kg
Tyres:Front/Rear 2.50"x18"/2.75"x18"
Max.Power 7.0 PS @ 8000 rpm
Max.Speed 85 Kmph
Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)

52
 A
m
b
it
i
o
n
1
3
5

Features :

Engine 4 stroke
Displacement 133 cc
Maximum Power 11 BHP / 11.15 PS @ 8000 rpm

53
Maximum Speed 100 KMPH
Gears 5
Frame Tubular single cradle, diamond type
Tyres: (Front) 2.75 X 18
Tyres: (Rear) 3.00 X 18
Headlight Trapezoidal 35 / 35 W
Fuel Efficiency 55 KMPL

CD DAWN

Features :

Engine 4-stroke, air-cooled, single cylinder OHC

Displacement 97.2cc
Clutch Multiplate wet
Gear box 4 speed constant mesh
Frame Tubular double cradle
Battery 12V - 2.5 Ah
Head lamp 35W / 35W - Halogen bulb
Suspension(front) Telescopic hydraulic shock absorber
Suspension(rear) Swing arm with hydraulic shock absorber
Wheelbase 1230 mm
Dimensions (LxWxH) 1980x720x1045 mm
Ground clearance 150 mm
Kerb weight 108 kgs
Tyre (front) 2.75 x 18-4 PR
Tyre (rear) 2.75 x 18-6 PR
Max power 7.4 PS @ 8000 rpm

54
Max torque 0.79 Kg-m @ 5000 rpm
Bore x Stroke 50.0 x 49.5 mm
Compression ratio 8.8: 1
Starting Kick start

KARIZAMA

If you look at the 223c mill of the Karizma, you can make
out the familiar streak that runs through the engines on the
CBZ and the Ambition. No prizes on this count as to the reason but the 223cc Karizma
engine represents - for the moment - the maximum capacity this modular design theme can
be taken to. The crankcase is of virtually the same size though the covers do have some
detail differences and the engine mounts are the same as in the other two bikes and
completing the picture are the scaled-up barrel (with an additional fin) and head.
The single overhead cam motor features slightly undersquare cylinder dimensions with a
65.5mm bore and a 66.2mm stroke to give a 223cc swept volume. Hero MotoCorp'shas
designed in the latest convex-type combustion chamber (compression ratio being 9.0 : 1)
for silent running and good power delivery while also giving it the latest Keihin VE 3EA
constant vacuum type carburettor which also packs in the CCVI switch. The CCVI term
stands for carb-controlled variable ignition timing which as it suggests actuates - via throttle
position - one of two ignition maps, for low and high speed operation. This was one area
which disappointed appreciably in the CBZ wherein the engine sounded and felt harsh as
one went past the middle range but here this detail has eliminated such a glitch completely.
Just for the record, the 223cc engine gets the latest version of Honda's AMI (advanced
microprocessor ignition) system which incorporates a three tier, multi-stage digital ignition
system.

The all aluminium alloy engine (with pressed-in steel liner) features an automatic cam
chain tensioner, an air cut off valve (to prevent afterburning in the exhaust muffler) and like
on the CBZ and Ambition, an air injection valve to keep tail pipe emissions in check. With
all this and the extra cubic capacity, the Karizma engine develops 16.76bhp at 7000rpm and
18.35Nm of torque at 6000rpm. This is about 2bhp and 5Nm more than what the Pulsar 180

55
makes but the reasoning is that the engine had to be stressfree and this fact holds true when
out on the roads.

Transmission is via a five-speed gearbox which has had its final drive ratios revised from
those in the CBZ. A stronger multi-plate clutch is used to take care of the enhanced power
and torque figures. This time round Hero MotoCorp'shas not faulted and equipped the
engine withan electric starter even though the kick starter to be actuated requires the front
right footrest to be folded out of the way.
ENGINE:
TRANSMISSION:

PASSION PLUS

56
Features :

Displacement 97.2 cc
Maximum Power 7.5 Ps at 8000 rpm
Gear Box 4 Speed Constant Mesh
Clutch Multi-Plate Wet Type
Max. Speed 85 Kmph.
Frame Tubular Double Cradle
Suspension (Front) Telescopic Hydraulic Fork
Swing Arm with 5 step adjustable hydraulic
Suspension (Rear )
damper.
Tyre Size (Front ) 2.75 * 18- 4 PR /42 P
Tyre Size (Rear ) 3.00*18-4/6 PR
Brakes (Front) Internal Expanding Shoes Type
(130mm)/ Hydraulic Disc Type (Optional)
Brakes (Rear) Internal Expanding Shoes Type (130 mm)
Final Drive Roller Chain
Battery 12 V-2.5 Ah
Ignition Electronic CDI
Starting Kick Starter
Wheelbase 1235 mm
Ground Clearance 160mm
Length 1980 mm
Width 720 mm
Height 1060 mm
Kerb Weight 116 kgs.
Fuel Tank Capacity 12.8 litres (Reserve 1.1 litres)
Head light Halogen Bulb 35 W / 35 W

57
 4.1 FACTS & FIGURES

Sale of Hero MotoCorp'sin Rural area and Urban area

In the survey of rural as well as urban area it is found that in rural area the sale of Hero
MotoCorp'sis less but in urban area it gives very exiting result. This may be because of the
conditions of roads there.

Area % of Respondents
Urban Area 72
Rural Area 28

28%

72%

Urban Area Rural Area

58
 PARTICULER AREAS OF RESPONDENTS

All the respondents were from different areas. The samples were taken from the mentioned
areas for the survey. It was observed that the people of main town like to use Hero
MotoCorp'sas they like all features of it. And is according to there pocket

Areas % of respondents
Motijheel 42
Maripur 12
Chatta Chock 26
Mithan Pura 14
Other 6

6%
14%
42%

26%

12%

Motijheel Maripur Chatta Chock Mithanpura Other

59
 FAMILY INCOME OF RESPONDENTS

The income distribution of the families of respondents shows that the bike, which was
considered earlier to be out of range for middle class families is now becoming very fast an
article for them.

Family income (Rs.) % of Responses

5000-10000 10
10000-15000 46
15000-20000 36
Above 20000 08

8%
10%

36%
46%

5000-10000 10000-15000 15000-20000 Above 20000

60
 PERSONS WHO KNOW TODRIVE BIKE

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

Response % Of respondents
Driving known 96
Driving not know 04

4%

96%
Driving known Driving not know

61
 FACTOR PROMPT TO BUY HERO HONDA

It should be stated that the performance is the most important factor followed by look. The
possible combination and corresponding number of respondents are shown in the table
below.

Features % of respondents
Performance 18
Look 11
Availability 5
Price 1
Maintenance 4
Brand image 5
After sale service 6

10% 12% 36%

8%

2% 10% 22%
Performance Look Availability
Price Maintenance Brand image
After sale service

62
HOW DID THE RESPONDENT CAME TO KNOW ABOUT
THE BIKE?
The best media of advertisement (according to which the respondents came to know about
the bike) is the ads on television. Friends & magazine are the other sources. Only 2 % of
them came to know through hoardings.

Medium of Advertisement % of Respondents

Television 46
Magazine 36
Friends 14
Hoardings 02
Others 02

2%
14% 2%

46%

36%

Television
Magazine
Friends
Hordings
Others

63
PURCHASE OF BIKE

Almost 94 % of the respondents say that they have purchased the bike by cash. Only 6% of
the respondents say that they have purchased their bike through bank loans.

Purchase Type % of Respondents

Cash Purchase 94
Hire Purchase 06

6%

94%

Cash Purchase Hire Purchase

64
 DECISION INFLUENCED BY

Maximum no. of the Respondents have taken decision to buy the bike on their own. After that their
friends and parents influenced them.

Influencer % of Respondents
Parents 16
Self 54
Friends 18
Relatives 08
Others 04

4%
8%
16%

18%

54%

65
 BIKES PREVIOUSLY USED

More than 60% were using Hero MotoCorp'sCD100 bikes. They were followed by Yamaha
RX100 & very little have chosen other bikes.

Previously Used % of Respondents

CD100 62
Yamaha RX100 32
Others 06

6%
32%

62%

66
 RATING OF BIKES

42% of the respondents have rated as the best bike they have used, but it is facing a stiff
competition from Pulsar & Fierro.

Bikes % rating by Respondents

Spleandor 38
Passion 08
Ambition 06
Pulsar 28
Fierro 14
Others 06

6%
14%
38%

28%
8%
6%

Splendor Passion Ambition Pulsar Fierro Others

67
4.2 SURVEY REPORT

The Initial Quality Study of Two Wheelers in India

Something to Ponder over.

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

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

Where exactly is the quality lacking…?

Are buyers happy with the quality they get…?

What is the trend over the years…?

Would they buy the same model again or more importantly from the manufacturers
point of view… would they advise their friends to buy it…?

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

WORKS :

It quantifies the initial quality of two wheelers in the form of the universally accepted
metric – Problems per 100 vehicles (PP100V)

Ranks all the popular models as per their quality performance

Links the quality findings with the customer viewpoint

68
 SWOT ANALYSIS OF THE COMPANY

Strengths:

 Strong and well differentiated marquee.

 Consumer understanding and Systems for building insights into market behavior.

 R&D capability well linked with business.

 Strong dealer network in North, Central & Eastern markets.

 Strong vendor supply chain.

 Strategic location of the plant.

 High level of indigenisation.

Weaknesses:

 Continued burden of "Asset-servicing" costs relating to geared scooter business.

 Late entry into motorcycle market.

 Low network penetration.

 Low production capacity and product range (motorcycles).

Opportunities:

69
  Market growth through increased penetration especially in semi-urban and rural
areas.

 Influencing consumers’ preference through innovation, and with high level of quality
and class, defining product performance.

 Late entry gives flexibility in having a product line-up responding to present day
consumer preferences.

 Substantial cost-reduction opportunities - with increase in volumes.

Threats:

 Low volumes as compared to peers.

 Shrinking market for geared scooters.

70
 FINDINGS
The Indian two wheeler industry today offers more than 70 models to a buyer. And
manufacturers are launching new models every day…… More than 20 models were launched
in the last year.

Top this up with a variety of promises ranging from free gifts and financial schemes to the
attractive looking models and jingles in the advertisement.

In this whirlwind of speed and confusion maze, choosing the right pair of wheels can be a
trying experience for the common man.

In such a situation, the buyer has to first narrow down his search to a given category of two
wheeler. A lady doctor may decide to look only at gearless scooters while a collegian with a
rich father may only look at premium bikes.

What next……? Which bike should I buy? A bike with more power…… better looks……
more reliability…… errrr!

Lesser problems per vehicle for a given model could be a good enough reason to go for the
model…..? Yes! But, within my selected category of premium bikes… So which premium
bike has lesser problems?

Do new launches have more problems than older ones? Naa…! Does PPM score depend on
who manufactured the vehicle…? See for yourself!

71
Manufacturer-wise PP100V scores in Survey

Sr.No. Vehicle PP100V

1 Honda 146
2 LML 165
3 Hero MotoCorp's 176
4 Kinetic 183
5 TVS 196
6 Bajaj 196
7 Yamaha 223

Executive bikes scored less problems than economy bikes…however simpler machines like
scooters have the fewest problems

This year we classified motorcycles by the market as premium, executive and economy…...
Amongst the bikes, we found the number of problems were lowest in executive bikes and
highest in economy bikes….

Executive bikes (179 PP100V), then premium bikes (209 PP100V) and last were economy
bike (230 PP100V).

MAXIMUM PROBLEMS FOUND IN ENGINE AND

TRANSMISSIONS:

46% of the problems reported by customers were problems like high fuel consumption,
starting trouble, erratic / rough gear shifting, noisy / loose drive chain etc. All these problems
are related to the engine & transmission. Another 12% of the problems were attributed to
miscellaneous aspects like battery discharged, stand hard to operate, etc.
Perhaps this is the most complex part of the two wheelers and hence poses maximum
challenge to the quality control guys in the manufacturing units.

72
ENGINE Trouble..
Splendour the largest selling executive bike from Hero MotoCorp'shas reported the lowest
number of problems with ENGINE (37 PP100V) closely followed by the newly launched
geared scooter Eterno (38 PP100V) from Honda.

Simplicity is the beauty

TRANSMISSION WOES :
Gearless scooters/scooterettes have lowest number of TRANSMISSION problems.,
complains Who fulfilled the promised performance and how much…?
Sl No. Manufacturer % models above category average
1 Honda 100
2 LML 100
3 Hero MotoCorp's 67
4 Bajaj Auto 43
5 TVS 33
6 Yamaha 33
7 Kinetic 25

73
SCOPE AND COVERAGE :
Manufacturers and their Models:

Sr.No. Manufacturer List of models studied

* Bajaj
1 Boxer
2 Caliber 115
3 Pulsar 150 / 180
4 Spirit

*Hero Honda
f
5 Ambition
6 CD-100 / SS / Dawn / CD Dawn
7 Splendor / Passion
*Kinetic Engineering

8 Boss

*LML
9 Freedom

*TVS

10 Max 100 R / DLX / DC

11 Victor

*Yamaha
12 Crux / Crux R

74
13 Enticer

Aggregates and features covered:

§ Overall Satisfaction
§ Overall quality
§ Instrument Panel / Dash Board
§ Locks
§ Control knobs / Switches
§ Handle
§ Lights
§ Body
§ Transmission
§ Engine
§ Wheels
§ Riding

75
 5.1 FINDINGS

It is clear from the report that the Hero MotoCorp's is facing cutthroat competition; hence
the company’s manager has to be fast and smart so as to understand the customers needs.
They have to come up with various new techniques or schemes to be able to cater to different
categories of people.

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

Customers are becoming more wise day by day and they are now willing to know all the in
and out of the things happening around them. This has led to increased customer awareness.

We can analyze that if the brand is reputed that doesn’t win the customers delight unless it’s
provided same value-added features or else we can say competitive advantage.

 For gaining a competitive advantage it has to continuously compare the product and
services with the competitors and find the weak area of the rivals for gaining
competitive advantage.

 Surveys revealed that awareness of Hero MotoCorp's is low among its target segment
for creativity awareness. The company has to take some keen step for promotional
activity.

 The company should regularly send the sales person who have good communication
skill to the customers so that they should be aware about the product and services in
market and know the quality of the services offered by the company.

76
 RECOMMENDATIONS & SUGGESTIONS

While Hero MotoCorp'shas strong foothold in the industry, the company should look into the
areas of weakness.
In this connection, It is suggested that the company can look into the following areas:

 In order to expand its business it should introduce innovative schemes for young
generations, better financial schemes, etc.

 The company should expand its service centers.

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

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

 Strategies to be formed to beat the competitor

 Scooter segment require some more attention Honda scooter can do much better

And focus on developing light scooters for girls.

77
 CONCLUSION

It is concluded that the market potential of Hero Motocorp's. The rational behind this
particular study is to find out the present market scenario of various brands & to find
out the corporate need and perception. It was a pleasurable experience to conduct a
research on behalf of Hero MotoCorp's pertaining to the study of the Automobile
Sector. To carry out this research a sample study was pursued where the target was
made to the people of Allahabad region. Various statistical and analytical tools and
techniques are applied to ascertain and depict the present scenario.
Conclusion and there by recommendation has been arrived at by proper and justified
interpretation of the result derived from the above said analytical tools and
techniques.

78
 BIBLIOGRAPHY

BOOKS:
 Name of the book :- Marketing research
Author :- Dr. C.B.Mamoria

 Name of the book :- Marketing research

Author :- Mr. Kothari.

MAGAZINES, JOURNALS AND NEWSPAPERS:

 Journals published by Hero Honda, Annual Report

 Auto India, Business World

INTERNET:
 www.herohonda.com
 www.google.com

79
 QUESTIONNAIRE FOR THE SURVEY OF MOTORBIKES .

1. Name __________________________________________________

2. Address _____________________________________________
_____________________________________________

3. Phone No. ___________________

Mobile No. ___________________

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

28 – 32 years [ ] above 32 years[ ]

5. Do you have any bike in your house?

Yes [ ] No [ ]

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

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

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

________________________________________________________.

9. Which Bike does you like most?

________________________________________________________.

80
 10.Rank the Motorbike manufacturing company.

1. Hero Honda [ ]
2. Yamaha [ ]
3. Bajaj [ ]
4. L.M.L. [ ]

11. Do you remember any advertisement of Hero Honda?

________________________________________________________.

12. What should the price range in your opinion?

Splendor + ___________________ Sufficient [ ]
CD dawn ___________________ Sufficient [ ]
Passion + ___________________ Sufficient [ ]
CBZ ___________________ Sufficient [ ]
Karizma ___________________ Sufficient [ ]

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

________________________________________________________
_____________________________________________________________________
___________________________________________.

14.Give remark to your old Bike Company.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

81
15 Give remark to Hero Honda.

Good [ ] Very Good [ ]

Excellent [ ] Out standing [ ]
Don’t have a Bike [ ]

82