Loyalty Programmes as a Marketing Tool

Submitted in partial fulfillment of the requirements of Mumbai University for the Award of the Degree of

BACHELOR OF MANAGEMENT STUDIES

By

IYER ARUN K. N. NARAYANAN

Under the Guidance of Prof. NIRANJAN AMTE

ALKESH DINESH MODY INSTITUTE OF FINANCIAL AND MANAGEMENT STUDIES

DECLARATION

I hereby declare that this project titled CONSUMER PERCEPTION TOWARDS HERO HONDA MOTOR BIKES IN MUMBAI CITY submitted by me to Department of Management, Mumbai University in partial fulfillment of requirements of BMS programme is a bonafide work carried out by me under the guidance of for the award of any degree diploma/ certificate or published any time before. Prof. Niranjan Amte. This has not been submitted earlier to any other University or Institution

Place: Mumbai Date:

ARUN IYER

CERTIFICATE FROM GUIDE & HEAD OF THE INSTITUTION

Certified that this declaration entitled Loyalty Programmes as a Marketing Tool, submitted in partial fulfillment for the award of BMS Degree of Mumbai University was carried out by Mr Arun Iyer under the guidance of Prof Niranjan Amte .This has not been submitted to any other university or institution for the award of any degree/ diploma/ certificate.

GUIDE

DIRECTOR BMS DEPARTMENT

PROFESSOR

ACKNOWLEDGEMENT

My project work would have become practical without the help of grace of the Almighty and timely advice and creative support rendered by many. I express my affectionate thanks to The Director, Alkesh Dinesh Mody College Mumbai for giving me an opportunity to do this training. I am highly indebted to my faculty guide Prof. Niranjan Amte department of management studies for inspiring me and for his valuable guidance and assistance provided. I also thank all other staff members of the department for guiding me in my training. I express my sincere gratitude and special thanks to all who supported me for their valuable suggestions and keen interest which are extremely helpful in shaping this project work to success.

ARUN IYER

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
. Over the years Hero Honda has come to stand for trust coupled with a strong and credible people transportation tradition. This mega brand signifies the beliefs and commitments of the company and the emotional quotient of the Indian consumer. And this aspect is shown in their tag line Desh Ki Dhadkan. It sends out the message that the company understands the needs of the common man and puts all its efforts to fulfill that need. It reflects the tremendous amount of research invested by Hero Honda in understanding consumer preference on one hand and producing top quality product on the other. In Mumbai Hero Honda has got its own importance in this field, because of its quality, timeliness, prompt in delivery and well-known brand name. It is necessary for the organization to strengthen its sales and distribution activity. In the Two Wheeler business, the distribution system is characterized by two factors: Brand equity and a Wide Distribution Network: Brand equity is built over a period of time by technical innovations, consistent,high quality, aggressive advertisement and marketing. Availability of products near the consumer through a wide distribution network is a crucial factor, as products are of big value, not frequently purchased, not daily used items. So the effort made here is to Study and Analyze the Consumer Perception towards Hero Honda Products. The research entitled as A market study on what the consumer feels about Hero Honda products, whether they are satisfied with the products, which of its attributes they prefer in the product, what influenced them to make the purchase decision etc. and which brands they prefer most in Hero Honda when compared to its competition. As the products and the company are very familiar to the people, the other brands like Suzuki and Honda have entered the market and increased the competition in this field. This has created a need to analyze consumers perception towards Hero Honda motor bikes, since Bajaj and TVS play a big role in the Two Wheeler industry have becomethe necessary for Hero Honda to retain the market share.

Following is the chapters classification of the study:

Chapter 1: INTRODUCTION

This is about the general introduction of the topic.

Chapter 2: RESEARCH DESIGN

This deals with the method used in the study including sampling technique, sample description, and instrumentation technique and data analysis software.

Chapter 3: PROFILE OF THE INDUSTRY, COMPANY

This describes the back ground and history of Two Wheeler Industry and the profile of company, products and its key policies

Chapter 4: DATA ANALYSIS AND INTERPRETATION

This chapter deals with the analysis of the collected data through questionnaire and it also interprets through different charts and graphs.

Chapter 5: FINDINGS, CONCLUSION AND RECOMMENDATION

This is the concluding chapter, which describes the overall finding and it also focus on the recommendation for further enhancement

CONTENTS
PAGE NO 1 2 3 13 14 14 15 15 16 16 16 17 17

Chapter 1 INTRODUCTION 1.1 1.2 General Introduction to the Study Theoretical Background of the Study

Chapter 2 RESEARCH DESIGN 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 Introduction to Research Review of Literature Statement of the Problem Need of the Study Objectives of the Study Methodology Source of Data Scope of the Study Limitations of the Study Chapterization

18
19 20 30

Chapter 3 PROFILE OF THE INDUSTRY AND COMPANY 3.1 3.2 Industry profile Company profile

Chapter 4 ANALYSIS AND INTERPRETATION

4.1 4.2

35 36

Analysis of Data Collected Analysis of the Objective of the Study and Questions Asked.

72 75 76 79 80

Chapter 5 FINDINGS, SUGGESTIONS & CONCLUSIONS 5.1 Findings 5.2 Conclusion 5.3 Suggestions & Recommendations BIBLIOGRAPHY ANNEXURE

82

85

LIST OF TABLES

TABLE NO 3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4 4.5

TITLE TABLE SHOWING THE INDUSTRY STRUCTURE TABLE SHOWING THE MOTOR CYCLE SEGMENT FROM 1999 TO 2000 TABLE SHOWING THE DISTRIBUTION OF HOUSEHOLDS IN PERCENTAGE TABLE SHOWING THE GROWTH IN INCOME GROUPS TABLE SHOWING THE GENDER OF RESPONDENTS TABLE SHOWING THE AGE OF RESPONDENTS TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS TABLE SHOWING THE SOURCES OF AWARENESS OF HERO HONDA TABLE SHOWING THE SATISFACTION ABOUT PRODUCT BRIEFING DONE BY SALES EXECUTIVE

PAGE NO 26 27 29 29 38 40 42 44 46

4.6 4.7 4.8 4.9 4.10 4.11 4.12

TABLE SHOWING THE TEST RIDE PROCESS PROCESS

48

TABLE SHOWING THE PERCEPTION TOWARDS SALES 50 TABLE SHOWING THE SATISFACTION ABOUT AFTER 52 SALES SERVICE TABLE SHOWING THE PERCEPTION OF RESPONDENTS 54 REGARDING COMPLAINT RECOGNITION TABLE SHOWING THE PERCPTION TOWARDS 56 MECHANICS OF HERO HONDA TABLE SHOWING THE PERCEPTIOIN TOWARDS THE 58 ATTRIBUTES OF HERO HONDA TABLE SHOWING THE CONSUMER PERCEPTION 60

TOWARDS PERFORMANCE OF HERO HONDA

TABLE NO 4.13 4.14 4.15 4.16 4.17 4.18

PAGE NO TABLE SHOWING THE AVAILABILITY OF SPARE PARTS 62 OF THE HERO HONDA TABLE SHOWING THE CONSUMERS PREFERENCE IN SERVICING THE BIKE TABLE SHOWING THE FACTORS INFLUENCED IN PURCHASE DECISION HERO HONDA BRANDS TABLE SHOWING THE CONSUMERS PREFERENCE FOR ALTERNATIVE BRAND OF TWO WHEELER TABLE SHOWING THE ANALYSIS OF THE OBJECTIVE OF THE STUDY AND QUESTIONS ASKED 64 66

TITLE

TABLE SHOWING THE CONSUMERS PREFERENCE FOR 68 70 72

LIST OF CHARTS
CHART NO 4.1 TITLE CHART SHOWING THE GENDER OF RESPONDENTS PAGE NO 39

4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16

CHART SHOWING THE AGE OF RESPONDENTS CHART SHOWING THE OCCUPATION OF THE RESPONDENTS CHART SHOWING THE SOURCES OF AWARENESS OF HERO HONDA CHART SHOWING THE SATISFACTION ABOUT

41 43 45 47

PRODUCT BRIEFING DONE BY SALES EXECUTIVE CHART SHOWING THE TEST RIDE PROCESS 49 CHART SHOWING THE PERCEPTION TOWARDS SALES 51 PROCESS CHART SHOWING THE SATISFACTION ABOUT AFTER 53 SALES SERVICE CHART SHOWING THE PERCEPTION OF RESPONDENTS 55 REGARDING COMPLAINT RECOGNITION CHART SHOWING PERCPTION TOWARDS MECHANICS 57 OF HERO HONDA CHART SHOWING THE PERCEPTIOIN TOWARDS THE 59 ATTRIBUTES OF HERO HONDA CHART SHOWING THE CONSUMER PERCEPTION TOWARDS PERFORMANCE OF HERO HONDA CHART SHOWING THE AVAILABILITY OF SPARE PARTS OF THE HERO HONDA CHART SHOWING THE CONSUMERS PREFERENCE IN SERVICING THE BIKE CHART SHOWING THE FACTORS INFLUENCED IN PURCHASE DECISION CHART SHOWING THE CONSUMERS PREFERENCE FOR HERO HONDA BRANDS CHART SHOWING THE CONSUMERS PREFERENCE FOR ALTERNATIVE BRAND OF TWO WHEELER 61 63 65 67 69

4.17

71