Chapter 1

Introduction Industry profile Company Economic growth during liberalization measures Growth of two wheeler industry during the last decade Organizational profile Need of the study Literature Review and Gaps Objectives of the study Limitations of the study

INTRODUCTION
Marketing is fast moving and exciting activity in everybody activates. The sellers, distributors, advertising agencies, consultants, transporters, financers, store agencies and every one as a counter are part of the marketing system. Any exchange process be it consumer, goods, intermediary goods, services of ideas, comes under the preview of marketing. It is very often regarded that the development of markets and marketing is synonymous with the economic development of account. Through marketing is an age-old activity: it has developed recently as an action discipline. In the ever-growing corporate world, marketing is being regarded as a crucial element for the success of an Enterprise. Consumer Satisfaction is very essential for every product to survive in the market. Because a satisfied consumer can help the business by placing future demands to the company and passing the word of mouth to other potential consumers. So it is very important for the company to take care of the consumers and make them satisfied. Although the consumer-centered from seeks to create high consumer satisfaction, that is not its ultimate goal. If the company increases consumer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction. Also, the company has many stakeholders, including employees, dealers, suppliers and stockholders. Spending more to increase consumer satisfaction might divert funds from increasing the satisfaction of others partners. Ultimately, the company must operation the philosophy that it is trying to deliver a high level of consumer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources. Preferences: Each consumer has preferences for certain of the goods and services that are available in the market. Buyers also have a good idea of how much marginal utility they will get from successive units of the various products they might purchase. However, the amount of marginal & total utility that the people will get will be different for every individuals in the group because all individuals have different taste and preferences.

Budget Constraint: The consumer has a fixed, limited amount of money income. Because each consumer supplies a finite amount of human and property resources to society, he or she earns only limited income. Every consumer faces a budget constraint There is infinite demand, but limited income

Prices: Goods are scarce because of the demand for them. Each consumers purchase is a part of the total demand in a market. However, since consumers have a limited income, they must choose the most satisfying combination of goods based partially on prices. For producers, a lower price is needed in order to induce a consumer to buy more of their product.

The study of consumers helps firms and organizations improve their marketing strategies by understanding issues such as how The psychology of how consumers think, feel, reason, and select between different alternatives (e.g., brands, products);The the psychology of how the consumer is influenced by his or her environment (e.g., culture, family, signs, media);The behavior of consumers while shopping or making other marketing decisions; Limitations in consumer knowledge or information processing abilities influence decisions and marketing outcome;

INDUSTRY PROFILE
HISTORY OF THE TWO WHEELERS: The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an internal combustion engine (or, less often by an electric engine). The automobile was the reply to the 19th century reams of self-propelling the horse-drawn carriage. Similarly, the invention of the motorcycle created the self propelling bicycle. The first commercial design was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steer able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles or pedal cycles by adding small, centrally mounted spark ignition engine engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of main in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle designs to supercharged multivalent engines mounted on aerodynamic, carbon fiber reinforced bodywork. INVENTION OF TWO WHEELERS: The invention of two wheelers is a much-debated issue. Who invented the first

motorcycle? May seem like a simple question, safety, bicycle, i.e., bicycle with front and rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those bicycles in turn described from high-wheel bicycles. The high wheelers descended from an early type of pushbike, without pedals, propelled by the riders feet pushing against the ground. These appeared around 1800, used iron banded wagon wheels, and were called bone-crushers, both for their jarring ride, and their tendency to toss their riders. Gottiieb Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked wagon-type and it definitely had a bone-crusher chassis!

FURTHER DEVELOPMENTS: Most of the developments during the early phase concentrated on three and four-wheeled design since it was complex enough to get the machines running with out having to worry about them falling over. The next notable two-wheeler though was the Hildebrand & Wolf Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built and engine that was to make the mass production and common use of motorcycle possible. The first motorcycle with electric start and a fully modem electrical system; the Hence special from the Indian Motorcycle Company astounded the industry in 1931. Before World War 1, IMC was the largest motorcycle manufacturer in the world producing over 20000 bikes per year. INCREASING POPULARITY: The popularity of the vehicle grew especially after 1910, in 1916; the Indian motorcycle company introduced the model H racer, and placed it on sale. During World War 1, all branches of the armed forces in Europe used motorcycles principally for dispatching. After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles lasted into the late 20th century; weight the vehicle being used for high-speed touring and sport competitions. The more sophisticated of a 125cc model. Since then, an increasing number of powerful bikes have blazed the roads. HISTORICAL INDUSTRY DEVELOPMENTS: Indian is the second largest manufacturer and producer to two wheelers in the World. It stands next only to Japan and China in terms of the number of V produced and domestic sales respectively. This destination was achieved due to variety of reason like restrictive policy followed by the government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheelers industry made a small beginning in the early 50s when Automobile products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. The two wheelers market was opened were opened to foreign competition in the mid80s. And the then market leaders-Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the availability of fuel-efficiency

low power bikes, demand swelled, resulting in Hero Honda then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two players initially started with assembly of CKD Kits, and later on progressed to indigenous manufacturing. The industry had a smooth ride in the 50s, 60s and 70s when government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles in 1990. In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The reason for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant like increased production in 1992, due to new entrants coupled with recession in the industry resulted in companies either reporting losses or a fall in profits.

COMPANY PROFILE
Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4 June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motors. Hero is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera, India. Munjal family and Honda group both owned 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it Shut it Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 201617. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South India and their fifth factory in Western India. There is no confirmation where the factories would be built.

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

MISSION
Hero MotoCorps mission is to become a global en terprise 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 env ironment for its people to perform to their true potential. It will con tinue its focus on value creation and enduring relationships with its partners.

STRATEGY
Hero MotoCorps 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, con tinue to invest in brand building activities and ensure customer and shareholder delight.

MANUFACTURING
Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is b ased at Haridwar, in the hill state of Uttarakhand.

TECHNOLOGY
In the 1980s the Company pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. It became the first Company to launch the Fuel Injection (FI) technology in Indian moto rcycles, with the launch of the Glamour FI in June 2006. Its plants use world class equipment and processes and have become a benchmark in leanness and productivity. Hero MotoCorp, in its endeavor to remain technology pioneer, will continue to innovate and develop cutting edge products and processes.

PRODUCTS
Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The Company also started manufacturing scooter in 2005. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments.

DISTRIBUTION
The Companys growth in th e two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero MotoCorps extensive sales and service network now spans over to 5000 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country.

BRAND
The new Hero is rising and is poised to shine on the global arena. Companys new identity Hero MotoCorp Ltd. Is truly reflective of its vision to strengthen focus on mobility and techn ology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation.

MILES STONES
YEAR 1983 ACHIEVEMENTS Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 1985 Hero Honda Motors Ltd. incorporated First motorcycle "CD 100" rolled out

1987 1989 1991

100,000th motorcycle produced New motorcycle model - "Sleek" introduced New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced

1992

Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal

1994

New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced

1997

New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 1999

2,000,000th motorcycle produced New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal

2000

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

2001

New motorcycle model - "Passion" introduced One million production in one single year

New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced 2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors

2003

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

2004

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

2005

Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced

2006

Hero Honda is the World No. 1 for the 5th year in a row 15 million

production milestone achieved 2007 Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched New motorcycle model 'Hunk' launched 20 million production milestone achieved 2008 Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe lauched with power start feature New 'Glamour' launched New 'Glamour Fi' launched 2009 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations 2010 New model Splendor Pro launched Launch of new Super Splendor and New Hunk 2011 New licensing arrangement signed between Hero and Honda (Hero Honda is renamed as Hero) Launch of new refreshed versions of Glamour, Glamour Fi, CBZ Xtreme, Karizma Crosses the landmark figure of 5 million cumulative sales in a single year

HERO RACING
Hero MotoCorp set the race tracks on fire with their maiden foray into one of the most exciting race circuits for super bikes by partnering with Erik Buell Racing (EBR), USA. With this partnership Hero now enters into the exciting racing arena by sponsoring two teams: Team Hero & AMSOIL Hero at the AMA Pro Racing Superbikes Championship. AMSOIL Hero is represented by the popular rider Geoff May #99, an accomplished rider whose passion is contagious & spirit is indomitable. Both the riders ride the scorching EBR 1190 RS bikes. As a company, we have always supported and nurtured sports and sporting talent in India. We are delighted to be taking an Indian brand to a highly-competitive and highly-popular international motorcycle race arena - says Mr. Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp Mr. Erik F. Buell, Chairman & CTO of EBR, said EBR is delighted to partner with a company as iconic as Hero MotoCorp. Both HMCL and EBR share the common commitment to manufacturing world-class two-wheelers with technology of the future. The 'Team Hero' at AMA Championships is really a natural extension of our strategic collaboration. Top-class motorcycle racing is a very popular sport in the US, and the presence of the Hero brand name is going to lend a lot of stature and excitement to all EBR fans out there."

ECONOMIC GROWTH DURING THE LIBERALIZATION MEASURES:

CARE Research has come out with its report on Indian two wheeler industry. The research firm estimates marginal improvement in the economic scenario and expects the industry to grow by around 8-9 per cent in FY14. Slowdown in economy deflated consumer sentiments in FY13 The demand environment for the two wheeler industry remained subdued in the current fiscal. CARE Research believes tough economic scenario owing to high inflation, depleting growth in all economic activities, coupled with challenges like firm interest rates and spiralling fuel prices have moderated the growth in near term. Income levels in urban areas have been affected by the slowdown in the industrial activities, while rural income is impacted due to below normal monsoons in most regions that has significantly affected agriculture output. CARE Research observed inspite of some sort of momentary spurt owing to festive demand during third quarter of FY13, the two wheeler sales growth remained around 4 per cent during the April-February period of FY13. Motorcycles expected to take back seat in near to medium term... The motorcycle segment that has been mainstay for the industry since last two decades, has been witnessing slowdown in growth levels during past 4-5 years. For FY13 motorcycle demand growth remained around 1 per cent for first eleven months. Impact on income levels in urban areas owing to slowdown in industrial and service activities has strained the demand for motorcycles in FY13. Furthermore, growing popularity of ungeared scooters has also added to the woes of the motorcycle manufacturers. CARE Research foresees it would be difficult for the segment to retain the strong growth levels it has witnessed in past one decade owing to rising pressure due to substitution by scooters. ...Un geared scooter likely to remain growth engine in near term The ungeared scooter segment has been witnessing robust growth trend since last 4-5 years. The scooter manufacturers which initially targeted working women population have off-late expanded their customer base by launching products catering to male buyers. For example, new models like HMSI Aviator, TVS Wego, Suzuki Access, Mahindra Rodeo, etc has been able to lure considerable proportion of middle and upper middle class male buyers (primarily in age bracket greater than 35 years) for second vehicle. Hence, inspite of the current challenging

scenario, ungeared scooter segment has been able to grow by 16 per cent during April-February period of FY13. CARE Research foresees, scooter segment to remain the growth engine for two wheeler industry in near to medium term period. Two wheeler industry likely to register a growth of 8-9 per cent in FY14 CARE Research estimates marginal improvement in the economic scenario and expects the industry to grow by around 8-9 per cent in FY14. The growth would be aided by moderation in inflation post first half along with the assumption of normal monsoon season. The motorcycle segment is likely to grow in a range of 6-7 per cent in FY14. The scooter segment is expected to remain the growth driver and is estimated to observe a growth of around 13-14 per cent for FY14. CARE Research foresees, demand from rural and semi-urban areas would drive the two wheeler demand growth in near to medium term period. Disclaimer: This report is prepared by CARE Research, a division of Credit Analysis & REsearch Limited [CARE]. CARE Research has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Research operates independently of ratings division and this report does not contain any confidential information obtained by ratings division, which they may have obtained in the regular course of operations. The opinion expressed in this report cannot be compared to the rating assigned to the company within this industry by the ratings division. The opinion expressed is also not a recommendation to buy, sell or hold an instrument. The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

GROWTH OF TWO WHEELER INDUSTRY DURING THE LAST DECADE:

The two-wheelers market has had a perceptible shift from a buyers market to a sellers market with a variety of choice, players will have compete on various fronts viz. pricing, technology product design, productivity after sale service, marketing and distribution. In the short term, market shares of individual manufacturers are going to be sensitive to capacity, product acceptance, pricing and competitive pressures from other manufacturers. As incomes grow and people grow and people feel the need to own a private means of transport, sales of two-wheelers will rise. Penetration is expected to increase to approximately to more than 25% by 2005. The motorcycle segment will continue to lead the demand for two-wheelers in the coming years. Motorcycle sale was increased by 20% yoy as compared to 1% growth in the scooter market and 3% by moped sales respectively during the previous two years. The four-stroke scooters has added new dimension to the two-wheeler segment in the past years. The Asian continent is that largest user of the two-wheelers in the world. This is due to poor road infrastructure and low per capita income, restrictive policy on car industry. This is due to oligopoly between top five players in the segment, compared to thirsty manufacturers in the car industry. Hero Honda motors LTd., is one of the leading companies in the two-wheeler industry. At present it is the market leader in the motorcycle segment with around 47% the market share during FY 2000 01. During the year, company posted a 41.15% yoy rise in turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in Motorcycle sales volumes. The company has emerged as one of the most successful players, much ahead of its competitions an account of its superior and reliable product quality complemented with excellent marketing techniques. The company has been consistently addressing the growing demand for motorcycles and has been cumulative customer base of over 4 million customers, which is expected to reach 5min mark with rural and semi-urban segment being the new class of consumers.

ORGANIZATIONAL PROFILE
INTRODUCT TO SASYA AUTO Sasya Auto was established in the year 2002 as sales and service of Hero Honda Spare Parts. Chairperson of Sasya Auto is S.M Srinivasa Rao after succesful gains in Sales and Service of Hero Honda later in the year 2007 Sasya Auto got the dealership of Hero Honda Two Wheelers in Kurnool. At the time of establishement of the Dealership the sales manager is Lakshmikanth Reddy, Work Manager is Narayana Swamy. Sasya Auto has got a skilled human resources in the firm and are as fallows; 8 supervisors, Technicians 14 members, Asistant Technicians 14 Members, Computer Operator 1 member, Telephone Operator 1 members as internal employees, and the external employees are as fallows; Sales Executies 7 2 Females and 5 Males working in the firm for more than 3 years. In the year 2012 due to the solvency of the collbarotion between Hero and Honda the Sasya Auto Dealership changed form Hero Honda to only Hero. The Sasya Auto sales is 15 20 bikes regularly and during the special ocassions the sales move to more than 30 bikes a day. Regional sales manager is Yoganand. At the same time Sasya Auto is serving its 100 customers regularly. Which intact both free service and pay service. Sasya Auto also conducts a monthly once camps to promote the newly launched two wheelers of Hero, viz Hero CBZ Xtreme, Hunk. Sasya Auto also conducts a Exchange mela under special discount offers twice or trice in a year in various parts of the Kurnool District like Orvakal, Shanti Nagar, Dhone, Patti Konda etc.

NEED FOR THE STUDY

The study will help in studying the awareness of Hero Motors in the market when comparing to other brands, which enables to analyze customer satisfaction. A careful and thorough study of the different factors enables the company to withstand to the changing situations of the environment and suggests suitable strategies to the company.

LITERATURE REVIEW
CUSTOMER SATISFACTION:

Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services exceeds specified satisfaction goals."

Customer satisfaction with a purchase depends on how well the products performance lives up to the customers expectations. Customer satisfaction is a key influence on the future buying behavior of the people. Satisfied customer will buy the product again and tell the others about their good buying experiences. Dissatisfied customers on the other hand switch to the competitors product and also discourage others from buying the product. Marketers must be careful to set the right level of expectations. If they set expectations too low they may satisfy those who buy but fail to attract enough customers. If they raise expectations too high, customers will be disappointed. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships.

PURPOSE:

Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty. Customer satisfaction data are among the most frequently collected indicators of market perceptions. Their principal use is two fold

1. Within organizations, the collection, analysis and dissemination of these data send a message about the importance of tending to customers and ensuring that they have a positive experience with the companys goods and services 2. Although sales or market share can indicate how well a firm is performing currently, satisfaction is an indicator of how likely it is that the firms customers will make further purchases in the future.

According to Philip Kotler whether the buyer is satisfied is depend upon the offers performance in relationship to the buyer expectations, and whether the buyer interprets any deviations between the two. In general satisfaction is a persons feelings of pleasure or disappointment that results from comparing a product perceived performance to their expectations. If the persons falls short of expectations he will be disappointed. If the performance matches the expectations then the customer can be satisfied. Customer assessments of products performance depend on many factors especially the type of loyalty relationship the customer has with the brand.

Many companies are systematically measuring how well they treat their customers identifying the factors shaping satisfaction and making changes in the operations, within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective.

In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget motel even though its facilities and service would be deemed superior in absolute terms.

CUSTOMERT SERVICE: . Customer service is a series of activities designed to enhance the level of customer satisfaction that is, the feeling that a product or service has met the customer expectation." Its importance varies by product, industry and customer; defective or broken merchandise can be exchanged, often only with a receipt and within a specified time frame.

CUSTOMER SATISFACTION:

Customer satisfaction with a purchase depends on how well the products performance lives up to the customers expectations. Customer satisfaction is a key influence on the future buying behavior of the people. Satisfied customer will buy the product again and tell the others about their good buying experiences. Dissatisfied customers on the other hand switch to the competitors product and also discourage others from buying the product. Marketers must be careful to set the right level of expectations. If they set expectations too low they may satisfy those who buy but fail to attract enough customers. If they raise expectations too high, customers will be disappointed. Customer value and customer satisfaction are key building blocks for developing and managing customer relationships.

CUSTOMER VALUE:

Consumers have a wide choice of products and services which promise satisfaction of a particular need. They normally decide on their choices based on their perceptions of the value and satisfaction that different products and services delivered or offer. Customer value is a difference between the value customer gains from buying and using a product and the cost of the buying the product. They normally form expectations the value of different marketing offers and buy accordingly. This involves the customers mental process of judging the value of the product and is called customer perceived value. Customer expectations are based on past buying experiences and opinions of friends and family members. The promises are offered by the marketers and the information about similar product offers of competitors also influences expectations. The main task of marketing therefore becomes value creation and value delivery. Marketing offers are value propositions promising benefits and values.

CUSTOMER CONCEPT: Many companies are today moving beyond the marketing concept to the customer concept. These companies shape separate offers, services, and messages to individual customers, based on

their individual preferences. They hope to achieve profitable growth through capturing a larger shape of each customers expenditures by building high customer loyalty and focusing on customer lifetime value. One-to-one marketing has become possible through advances in factory customization, computers, the internet and database marketing software. Examples: Barbie Dolls, Levi Strauss Jeans, Dell Computers.

RELATIONSHIPS:

Marketing does not stop with single transaction between the marketer and the customer. The marketer wants the customer to be fully satisfied with the transaction so that a long-term relationship can be built up in the form of customer loyalty. Marketing consists of actions taken to build and maintain desirable exchange relationships with target audiences involving a product, service, idea or other object. Beyond simply attracting new customers and creating transactions, the goal is to retain customers and grow their business the company.

CUSTOMER RELATIONSHIPS: In order to succeed in todays highly competitive market, companies must be customer -centered, winning customers from competitors, then keeping and growing them by delivering greater value. To be able to satisfy the customers a company must first analyze and understand their needs and wants. Companies know very well that they cannot profitably serve all customers in the same way. Most companies are in a position to serve some segments better than others. Each company must divide the total market, choose the best segments, and design strategies for profitably serving chosen market segments. These calls for a three-step process: market segmentation, target marketing and market positioning.

CUSTOEMR RELATIONSHIP MANAGEMENT: Whatever the concept or orientation followed, the primary concern of marketing management is to create profitable relationships with customers. Customer Relationship Management (CRM) is

the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Thus, todays companies are going beyond designing strategies to attract new customers and create transactions with them. They are using CRM to retain current customers and build profitable, long-term relationships with them. The modern view is that marketing is the science and art of findings, retaining, and growing profitable customers. Companies find that it costs 5 10 times as much to attract a new customer as it does to keep a current customer satisfied. Also, losing a customer means losing the entire stream of purchases that the customer would make over a lifetime of patronage, which is the customer lifetime value.

The key to building lasting customer relationships is to create customer value and satisfaction. Satisfied customers are more likely to be loyal customers, and they are likely to give the company a larger share of their business. A customer buys from the firm that offers the highest customer perceived value the customers evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of the competitors offer. Customers act on perceived value and not on actual product values and costs. Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations. Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. If the performance falls short of the expectations, the customer is dissatisfied. If the performance matches the expectations, the customer is satisfied. If the performance exceeds expectations the customer is highly satisfied or delighted.

A company would be wise to measure customer satisfaction regularly because one key to customer retention is customer satisfaction. A highly satisfied customer generally stays loyal longer, buys more as the company introduces new products and upgrades existing products, talks favorably about the company and its products, pays less attention to competing brands and is less sensitive to price, offers product or service ideas to the company, and costs less to serve than new customers because transactions are routine. When customers rate their satisfaction with an

element of the companys performance - say, delivery. It could mean early delivery, on-time delivery, order completeness, and so on. The company must also realize that two customers can report being highly satisfied for different reasons. One may be easily satisfied most of the time and the other might be hard to please but was pleased on this occasion. A number of methods exist to measure customer satisfaction. Periodic surveys can track customer satisfaction directly. Respondents can also be asked additional questions to measure repurchase intention and the likelihood or willingness to recommend the company and brand to others. Companies that do achieve high customer satisfaction ratings make sure their target market knows it. For customer centered companies, customer satisfaction is both a goal and a marketing tool. Although the customer-centered firm seeks to create high customer satisfaction, that is not its ultimate goal. If the company increases customer satisfaction by lowering its price or increasing its services, the result may be lower profits. The company might be able to increase its profitability by means other than increased satisfaction (for example, by improving manufacturing processes or investing more on R&D). Also, the company has many stakeholders, including employees, dealers, suppliers and stock holders. Spending more to increase customer satisfaction might divert funds from increasing the satisfaction of other partners. Ultimately, the company must operate on the philosophy that it is trying to deliver a high level of customer satisfaction subject to delivering acceptable levels of satisfaction to the other stakeholders, given its total resources.

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.

OBJECTIVE OF THE STUDY

1. To check the response level of the service centre towards the customers. 2. To check how far they are maintaining the customer relationship. 3. To check the level of satisfaction of customers. 4. To know the various factors motivated to go to Hero Honda service centre. 5. To know about service schemes and activities (warranties). 6. To know the customer rating of the service facility. 7. To know the opinion of the customer about the company and the service. 8. To know that how far that the company providing quality service.

LIMITATIONS OF THE STUDY

1. The study is conducted from customers point of view. As the study is based on to know the customer satisfaction level, the questionnaire has been prepared to recognize the view of customers. 2. The study is confined to KURNOOL region only. The area selected for doing the project is Kurnool city, so the results which will be drawn based on the analysis of customer view could not be said as the other customers point of view beyond the Kurnool city. 3. The biasing in the respondents view can be ignored. Some customer might have filled the questionnaire prejudiced, which can be ignored and couldnt be taken as definitive research results. 4. The study is limited to 6 weeks. As the study is restricted to the span of time, it might be possible that I have not come across with some important points regarding customer view towards the product of Hero Moto Corp.

Chapter 2
Methodology Sample design Tools of analysis Scope and significance of study

METHODOLOGY
In the present study the required data was collected using random sample method, care was taken to sec that the selected sample is a small specimen (or) an isolated part of the whole population representation us general objectives. Data source: Primary data collection is more costly but the data is usually more relevant to the issue at hand. The normal procedure is to interview some people individually (or) in groups. PRIMARY DATA The questionnaire consists of 23 questions relating to various aspects of the study. The first part of the questionnaire was mainly prepared to get the personal details of the customers & their extent of brand awareness. And the later part of the questionnaire was prepared to identify the customer satisfaction towards the Hero Bikes and service after sale. SECONDARY DATA Data pertaining the company is collected from the companys status report. The companys profile gives a detailed report of the past records of the organization. The data collection both from primary & secondary sources is tabulated and presented in a systematic from prior to classification and interpretation.

SAMPLING DESIGN:
Sampling An integral component of research design is the sampling plan. Specifically it addresses three questions. Whom to survey(The sampling unit), How many to survey (sampling size), and How to select them(The sampling procedure). Sampling Procedure Simple random sampling method has been adopted for the study. In random sampling each element of the population has an equal chance of being selected for the sample. Contact Method Once the sampling plan has been determined, the marketing researchers must decide how the subject should be contacted. The choices are mail, telephones or personal interviews. Collected Information The data collection phase of marketing is generally prone or error. In case of survey, four major problems arise. Some respondents will not be at home and must be re-contacted and replaced. Other respondents will refuse to co-operate. Analyze the Information The next to last step in the marketing research process is to extract earliest findings from the collected data. The researchers tabulate the data and levels in the frequency distribution. Averages and measures of dispersion are computed for major variables.

TOOLS FOR ANALYSIS:

Marketing researchers have a choice of two main research instruments in collecting primary data from questionnaires. Questionnaires This part is being explained briefly in the following theories of approach They are SAMPLING PLAN after deciding on the research approach and the instruments. The marketing researchers must design a sampling plan. This plan comprise of three parts 1. 2. Sample Size Sample Unit

Sampling Unit The sampling units for the study consisted of respondents from all walks of life, either sex, different age groups, different income group and so on, but all residents of KURNOOL CITY. Sampling Size Considering the nature and extent of the study and with the time constraints, a sample size of 80 customers was chosen.

SCOPE AND SIGNIFICANCE OF STUDY:

The project work A STUDY ON CUSTOMER SATISFACTION TOWARDS HERO MOTORS with reference to Sasya Auto in KURNOOL, to find how the CUSTOMER is satisfying towards Hero Motors, Kurnool. It is also intended to know the effect of advertisement on building awareness on Hero Motors. This study also considers to know the service after sale. It is important to know how customer felt after receiving service from the Hero Moto Corp service centre. This study also considers finding the customer satisfaction towards Hero Motors in KURNOOL district.

Chapter 3 Data Analysis and Interpretation

1. What is your Occupation? Occupation Employee Student Business Men Farmer Others No.of Respondents 31 12 14 19 4 Percentage 38.75 15 17.5 23.75 5

Bar Chart Representing the above table

Occupation of Respondents
45 40 35 30 25 20 15 10 5 0 Employee Student Business Men Farmer Others Percentage

Interpretation: Mainstream of the Hero Moto Corp in Kurnool City are Employees

2. What is your monthly Income?

Income < 6000 6000 - 8000 8000 - 10000 > 10000 Not Mentioned

No. of Respondents 14 19 18 23 6

Percentage 17.5 23.75 22.5 28.75 7.5

Bar Chart Representing the above table

Income Level of the Respondents

35 30 25 20 15 10 5 0 < 6000 6000 - 8000 8000 10000 > 10000 Not Mentioned 7.5 17.5 Percentage 23.75 22.5 28.75

Interpretation: Hero Moto corp. respondents entirety are in close proximity in income level.

3. Do you know Hero Honda Motors Ltd has changed to Hero Moto Corp. Ltd. ? Demerge of Hero Yes No No.of espondents 69 11 Percentage 86.25 13.75

Pie Chart Representing the above table

Aware of Demerge of Hero and Honda

No 14%

Yes 86%

Interpretation: Mainstream of the respondents are aware of Demerge of Hero and Honda

4. Which bike do you prefer? Bike Preference Splendor Plus Passion Plus Glamour Xtreme Karizma No.of Respondents 38 20 5 10 7 Percentage 47.5 25 6.25 12.5 8.75

Bar chart representing the above table

Bike Preference of Respondents

50 45 40 35 30 25 20 15 10 5 0 47.5

25 Percentage 12.5 6.25 8.75

Splendor Passion Plus Glamour Plus

Xtreme

Karizma

Interpretation: It could be observe that the major part of the respondents prefer Hero Honda Splendor and next fallows Passion Plus.

5. You service your bike for every? Bike Servicing 1 month 2 months 3 months 4 months No.of Respondents 11 51 12 6 Percentage 13.75 63.75 15 7.5

Bar Chart representing the above table

Respondents Service their bike for every

70 60 50 40 30 20 10 0 1 month 2 months 3 months 4 months 13.75 15 7.5 Percentage 63.75

Interpretation: The largest part of the respondents service their bike for every 2 months

6. Is the customer representative very friendly? Representative behavior Excellent Good Average Poor Very Poor No. of Respondents 8 55 14 3 0 Percentage 10 68.75 17.5 3.75 0

Bar chart representing the above table

Representative Behaviour
80 70 60 50 40 30 20 10 0 Excellent Good Average Poor Very Poor 17.5 10 3.75 0 Percentage 68.75

Interpretation: It is seen in the above chart that the majority of the respondents say representative behavior is good but not excellent.

7. Does the customer service centre hold your call quickly? Quick Response Yes No No. of Respondents 73 7 Percentage 91.25 8.75

Pie chart representing the above table

Quick response of the representative

No 9%

Yes 91%

Interpretation: According to the prevalence of the respondents service centre gives quick response

8. What is your experience with the service centre? Experience of service centre No. of Respondents Excellent Good Average Poor Very Poor 6 59 15 0 0 Percentage 7.5 73.75 18.75 0 0

Bar chart representing the above table

Respondents Experience on service centre

80 70 60 50 40 30 20 10 0 Excellent Good Average Poor Very Poor 7.5 0 0 18.75 Percentage 73.75

Interpretation: The mainstream of the respondents had good experience with the service centre

9. Are you satisfied with the quality and price of the spare parts and service? Dearness of service centre High Average Low No. of Respondents 25 55 0 Percentage 31.25 68.75 0

Bar chart representing the above table

Dearness of service centre

80 70 60 50 40 30 20 10 0 High Average Low 0 31.25 Percentage 68.75

Interpretation: None of the respondents think the price of the spare parts and service is low cost

10. What factors influence you to go to service centre? Factors influencing Quality of the parts Price of the parts Quick Response Friendly nature & patience No. of Respondents 48 11 16 5 Percentage 60 13.75 20 6.25

Bar chart representing the above table

factors influencing to go to service centre

70 60 50 40 30 20 10 0 Quality of the parts Price of the parts Quick Response Friendly nature & patience 13.75 6.25 20 Percentage 60

Interpretation: The Majority of the respondents comes to service centre due to quality of the parts

11. Compare to the other companies the services are? Comparison with other company service centre Excellent Good Average Poor Very Poor No. of Respondents 6 61 13 0 0 Percentage 7.5 76.25 16.25 0 0

Bar chart representing the above table

Comparison with other company service centre

90 80 70 60 50 40 30 20 10 0 76.25

Percentage 16.25 7.5 0 Excellent Good Average Poor 0 Very Poor

Interpretation: If compare with other companies the majority of the respondents say the Hero Moto Corp. service centre is good than other companies service centre.

12. Do you know Hero Moto Corp. Ltd giving five years warrantee for all available models of bikes? Awareness of Five year warantee Yes No No. of Respondents 33 47 Percentage 41.25 58.75

Pie Chart representing the above table

Awareness of Five year warantee

Yes 41% No 59%

Interpretation: Most of the customers are aware of the warrantee

13. What is your opinion on five year warrantee? Opinion Excellent Good Average Poor No. of Respondents 39 36 5 0 Percentage 48.75 45 6.25 0

Bar chart representing the above table

Opinion on Five year Warantee

60 50 40 30 20 10 0 Excellent Good Average Poor 6.25 0 Percentage 48.75 45

Interpretation: According to the majority of the respondents it is excellent and nobody responded it as poor.

14. What quality of the customer service representative troubled you? No. of Representative Trouble No Patients Not Enthusiast Unfriendly did not listen carefully Respondents 7 7 12 54 Percentage 8.75 8.75 15 67.5

Bar chart representing the above table

Quality of the representative troubled you

80 70 60 50 40 30 20 10 0 67.5

Percentage 8.75 8.75 15

No Patients

Not Enthusiast

Unfriendly

did not listen carefully

Interpretation: Major part of the respondents say that the representative did not listen carefully.

15. What is your opinion about the availability of staff? Staff availability Excellent Good Average Poor Very Poor No. of Respondents 2 68 10 0 0 Percentage 2.5 85 12.5 0 0

Bar chart representing the above table

Opinion of availability of staff

90 80 70 60 50 40 30 20 10 0 Excellent Good Average Poor Very Poor 2.5 12.5 0 0 Percentage 85

Interpretation: Staff availability of Hero Moto Corp. in Sasya Moto Corp. is good according to the major part of the respondents.

16. Even after the service you received, do you face any problem? Satisfaction after service Yes No No. of Respondents 23 57 Percentage 28.75 71.25

Pie chart representing the above table

is service rendered satisfactory

Yes 29%

No 71%

Interpretation:

Mainstream of the respondents have no problem after the service of their bike.

17. Do you recommend the Hero Moto Corp bike to others? Recommendations to others Yes no No. of Respondents 69 11 Percentage 86.25 13.75

Bar chart representing the above table

Recommendations of others
100 90 80 70 60 50 40 30 20 10 0 86.25

Percentage

13.75

Yes

no

Interpretation: According to the majority of the respondents they would like to recommend it to others.

18. What is your rating about the service of Hero Moto Corp? Rate the service Excellent Good Average Poor Very Poor No. of Respondents 8 57 15 0 0 Percentage 10 71.25 18.75 0 0

Bar Chart representing the above table

Rating the HeroMoto Corp Service centre

80 70 60 50 40 30 20 10 0 Excellent Good Average Poor Very Poor 10 0 0 18.75 Percentage 71.25

Interpretation: The mainstream of the respondents rated the service of hero moto corp. as good. Where no body has mentioned it as poor or very poor.

19. How many hours they will take to service your bike? Time taken 4 hours 4-5 Hours 5-6 Hours 6-7 Hours 7-8 Hours No. of Respondents 0 6 29 41 4 Percentage 0 7.5 36.25 51.25 5

Bar Chart representing the above table

Time Taken to service your bike

60 51.25 50 40 30 20 10 0 0 4 hours 4-5 Hours 5-6 Hours 6-7 Hours 7-8 Hours 7.5 5 36.25 Percentage

Interpretation: It can be seen in the above chart that most of the respondents received their bikes after a lot of time consumption.

20. Does mechanic gives suggestions how to maintain your bike? Maintenance suggestions Yes NO No. of Respondents 47 33 Percentage 58.75 41.25

Bar chart representing the above table

Does machanic give bike maintenance suggestions

70 60 50 40 30 20 10 0 Yes NO Percentage 58.75 41.25

Interpretation: It could be said that majority of the respondents have suggestions from the mechanic but the second majority doesnt get any suggestions from the mechanic.

21.Does the dealer delivers your bike in time? No . Of Delivery in time Yes No Respondents 57 23 Percentage 71.25 28.75

Bar chart representing the above table

Dealer delivers your bike in time

80 70 60 50 40 30 20 10 0 Yes No 28.75 Percentage 71.25

Interpretation: The majority of the respondents say that the dealer delivers the bike in time.

22. The service centre having the waiting hall? Facility of waiting hall Yes No No. of Respondents 80 0 Percentage 100 0

Bar chart representing the above table

Facility of Waiting hall

120 100 100 80 60 40 20 0 0 Yes No Percentage

Interpretation: Service center is providing the waiting hall facility.

23. Do they provide drinking water and pay phone facility? Facility of water and phone yes No No. of Respondents 80 0 Percentage 100 0

Bar chart representing the above table

Facility of pay phone and water

120 100 100 80 60 40 20 0 0 yes No Percentage

Interpretation:

Whole of the respondents receives the pay phone and water facility at Hero Moto Corp.

Chapter 4: Results and Discussions Comparison of results with other studies Suggestions and Recommendations

SUGGESTIONS AND RECOMMENDATIONS:

Always maintain the phone contacts with the customers.
Give ads about the product and the services frequently. The performance of the bikes such as splendor plus, passion plus, passion pro to be excellent by the customers, so better maintain the various variants in these bikes. Some of the customers complain that they are facing the problems even after the servicing so the service centre must solve this. Better take more than 100 bikes per day this will provide the service centre to maintain the better relationship with the customers. Try to reduce the cost of the spare parts. Adopt competitive pricing strategies.

Chapter 5: Summary and Conclusion Summary Conclusion Directions for future use

Summary:
The purpose of customer satisfaction measurement is to provide actionable information that will permit a company to manage and improve quality and satisfaction, as well as measure it accurately. There is a vast difference between customer satisfaction measurement and the full organizational deployment of customer requirements as the basis for effective customer satisfaction management. Customer satisfaction, like quality, is a process of continuous improvement. The customer satisfaction management process model introduced represents an organized and systematic process for identifying, measuring, managing, and monitoring critical attributes of customer satisfaction. Accurate measurement of customer satisfaction requirements, including importance and performance information, provides a reliable basis for identifying gaps between what customers require and what the company is prepared to deliver. Integrating customer requirements into the organization's process improvement activities ensures alignment between internal performance standards and external customer needs. This, in turn, enhances both operating results and marketplace results, thereby adding value to the company's overall performance. Periodic ongoing measurement and monitoring of changes in customer perceptions of performance on critical requirements provides feedback to improve process improvement activities further and to enhance customer focus.

CONCLUSION: Promotions and ads must be telecast in television regarding the offers of Hero Moto Corp. to gain attention of the public. Among all the bikes of the HERO Moto Corp. SPLENDOR PLUS, PASSION PLUS AND PASSION PRO are the most preferred bikes. Most of the people said that the spare parts are costly but are of quality.