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Consumer Behavior and Market Analysis of Hero Honda
Consumer Behavior and Market Analysis of Hero Honda
PREPARED BY
MANISH JAIN
BBA PART – 3rd yr
Summer training is a necessary part in the completion of the BBA, which
communication skills.
First of all, I would like to pay my heartiest thanks to Raju Gandhi , Regional
tasks. Without his essential guidance and cooperation, it wouldn’t be possible for
me to perform so well in the training and to pay regards to all the staff
MANISH JAIN
B.B.A. 3rd yr
INDEX
S. NO. Title Page No.
* CERTIFICATE FROM
ORGANIZATION
* ACKNOWLEDGEMENT
* PREFACE
* EXECUTIVE SUMMARY
1 COMPANY PROFILE
3 PROJECT BRIEF
4 PROJECT DESCRIPTION\\
5 RESULT
6 FINAL CONCLUSION
7 FINAL SUGGESTION
They also established dealerships al over the country – even rural areas – .
The strategy of Hero Honda Motors was to capture the market by offering a
superior product at an affordable price, with excellent customer service.
(Right cost)
The strategy has been successful to date and Hero Honda Motors (India) Ltd.
is the dominant market leader with over 50% of market share, ahead of
closest competitors Bajaj (Kawasaki JV) and TVS-Suzuki.
The researcher hopes that the findings of this report will assist the
organization to improve on its prevailing service to ensure the best possible
customer satisfaction.
AREA OF SURVEY IN BANSWARA REGION :
1. Dahod Road.
2. Dealers Shops.
3. Near Bike Service Centers.
4. Near Petrol Pumps.
5. Auto Mobile Parts And Many Other Places.
This whole survey and research was successfully done with the help
of Mr. Raju Gandhi (Regional Manager).
1. Road Shows.
2. Customer Meets.
3. Presentations.
The main moto of the survey was to improve the qualitative services
to ensure the best possible customer satisfaction.
“Hero” is the brand name used by the Munjal brothers in the year 1956 with
the flagship company Hero Cycles. The joint venture between India's Hero
Group and Honda Motor Company, Japan has not only created the world's
single largest two wheeler company but also one of the most successful joint
ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove that
it was possible to drive a vehicle without polluting the roads. The company
introduced new generation motorcycles that set industry benchmarks for fuel
thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign
captured the imagination of commuters across India, and Hero Honda sold
millions of bikes purely on the commitment of increased mileage
Over 19 million Hero Honda two wheelers tread Indian roads today. That's
almost as many as the number of people in Finland, Ireland and Sweden put
together!
Hero Honda has consistently grown at double digits since inception; and
today, every second motorcycle sold in the country is a Hero Honda. Every
30 seconds, someone in India buys Hero Honda's top -selling motorcycle -
Splendor. This festive season, the company sold half a million two wheelers
in a single month-a feat unparalleled in global automotive history.
Hero Honda bikes currently roll out from two globally benchmarked
manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These
plants together are capable of churning out 3.9 million bikes per year. A
third state of the art manufacturing facility at Hardwar in Uttranchal will
soon be commissioned to cope with sustained customer demand.
Hero Honda's extensive sales and service network now spans over 3000
customer touch points. These comprise a mix of dealerships, service and
spare points, spare parts stockists and authorized representatives of dealers
located across different geographies.
Hero Honda values its relationship with customers. Its unique CRM
initiative - Hero Honda Passport Program, one of the largest programs of this
kind in the world, has over 3 million members on its roster. The program has
not only helped Hero Honda understand its customers and deliver value at
different price points, but has also created a loyal community of brand
ambassadors.
Consumer behaviour means to study how individual and groups select, buy
and dispose of goods, service, ideas or experience to satisfy their needs and
desires.
This is the first macro environment mental force that marketers monitor is
population because people makeup market.
KEY POLICIES
AN ENVIRONMENTALLY AND SOCIALLY, AWARE
COMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help you
every step of the way in making your world a better place to live in. Besides
its will to provide a high-quality service to all of its customers, Hero Honda
takes a stand as a socially responsible enterprise respectful of its
environment and respectful of the important issues.
Hero Honda has been strongly committed not only to environmental
conservation programmes but also expresses the increasingly inseparable
balance between the economic concerns and the environmental and social
issues faced by a business. A business must not grow at the expense of
mankind and man's future but rather must serve mankind.
Safety Policy
Back to Top
Back to Top
Hero Honda Splendor Plus
Back to Top
Back to Top
Back to Top
Hero Honda Achiever
Back to Top
Back to Top
Back to Top
Hero Honda Karizma
Back to Top
Work culture: Our work culture supports and enhances our brand. The
Hero Honda brand signifies excitement. Hero Honda strives to inspire
confidence through excitement engineering. The culture is built on core
value of learning, innovation, perfection, speed and transparency.
Facilitative leadership style helps in developing leaders at all levels and
establishes accountability.
Our Brand Values: We live our brand by its values of learning, Innovation,
Perfection Speed and Transparency. Hero Honda will constantly inspire
confidence through excitement engineering. Learning is how we ensure
proactivety. It is a value that embraces knowledge as the platform for
building well informed, reasoned, and decfisive actions. Innovation is how
we create the future. It is a value that provokes us to reach beyond the
obvious in pursuit of that which exceeds the ordinary. Perfection is how we
set new standards . It is a value that exhibits our determination to excel by
endeavoring to establish new benchmarks all the time. Speed is how we
convey clear conviction. It is a value that keeps us sharply responsive,
mirroring our commitment towards our goals and processes. Transparency is
how we characterise ourselves. It is a value that makes us worthy of
creditability through integrity, of trust through sensitivity and of loyality
through interdependence.
Competency Building
Hero Honda has a very flat organization structure with three management
level. Each level represent a specific role and hence needs relevant
competencies. Competencies building at Hero Honda Auto is a combination
of development for current and future roles .We cater to these needs by
using intervention like development centers. need based training like
lectures, group discussions, role-plays, seminars, outbound training,
assignments and on-the-job takes.
Compensation Philosopy
Presence
The Indian two wheeler industry has seen a paradigm shift from being a
regime of regulation and tight control in the 1980s to a more liberalised and
a competitive present day era. After missing out on the initial boom in two
wheeler segment during the period of 1993-1996, Hero Honda has emerged
as a world leader. The gap between motorcycles sold by Hero Honda and its
closest rival is approximately 1 m units (23% of industry size). One of the
reasons for the tremendous performance of Hero Honda is the significant
increase of share of motorcycles in the two-wheeler segment, from 42% in
FY99 to 77% in FY04. No doubt, that the shift in preference of Indian
populace from scooters and mopeds towards motorcycles has facilitated the
growth of Hero Honda. However its performance vis-à-vis industry indicates
that the performance of Hero Honda was better than the industry peers,
barring two years. In the seven-year period ending FY04, it has achieved a
CAGR of 30% in two-wheeler volumes against 11% of the industry.
As table 1 shows, over the last few years, Hero Honda Motor cycle sales
have consistently grown faster than the market – resulting study
improvement in market shares month- on- months.
With this two brands, Hero Honda motors maintains a share of 27% of this
segment. Given heightened competition in this segment, we felt the need to
offer a therd model combining superb styling, features like alloy wheels,
SNS suspension, while giving top class fuel efficency . with motor cycles
accounting for 82% of the two wheelers market, the share of other two
wheelers like ungeared scooters and step – thrus witnessed either marginal
growth or reduction in sales. The ungeared scooters segment witnessed a
marginal growth of 4.7% , with sales volumes of over 777,000 units. With
the introduction of PLEASURE, Hero Honda motors volumes in this
segments increased to 52,611 units in 2006-07 translating to a market share
of 7%.
Research Design:-
Sample Design:-
The first step in the order to accomplish the task was to draw a simple. To
serve the purpose, the sample technique adopted was “Random
Sampling”.also by adopting this procedure it was ensured that the sample
drawn would have the same composition and characteristics of the
population.
Types of universe:-
70
60
50
40
30
20
10
0
Market share
2 wheeler 4 wheeler
1. Inference:-
60
50
40
30
20
10
0
1st Qtr
2. Inference:
12
10
8
0
Motor Preference
3. Inference:
60
50 > 10
Years 40
> 5 Years 30
> 1 Years
20
4. Inference:
80
70
60
1
50
2
40
30
3
20
4
10
0
5. Inference:
40
35
30
25 Price
20 Stylish look
15 Brand name
10
5 Services
0
1st Qtr
6. Inference:
100
80
60
Yes
40
No
20
7. Inference:
For Hero Honda people wish even to pay a little extra for
great look in the coming models of the Hero Honda .85% of the
respondent owing two-wheeler said yes in favour it.
Hero Honda motors captured a majority of Indian market
100
80
60
Yes
40
20
No
0
1st Qtr 2nd Qtr 3rd Qtr 4th
Qtr
8. Inference:
base.
2. Few competitors have led the company to enjoy the better customer
WEAKNESSES: -
OPPORTUNITY: -
automobile industry.
2. Competition is paving way for developing fuel efficient product.
THREAT: -
The performance over the last 5 financial years has shown a significant rise I
the sales and overall profit of the company. The company has made it self
sounder despite the rising competition day –by-day and meting out all the
social responsibility towards the society and nation honestly. The company
has made itself a lot of achievement and awarded gracefully for several of its
milestones.
WEB: -
1. www.herohondamotors.com
2. www.trade-india.com
3. www.projectmonitor.com
4. www.google.com
5. www.msnsearch.com
6. www.automobileindia.com
1. Business World
2. India Today
3. Outlook
BOOKS:
1. Kothari,C.R. Research Methodology,New Delhi,Vikash Publishing
house Pvt. Ltd.
2. Kotler,Philip,Marketing Management,New Delhi,Pearson Education
Singapore,2005,11th Edition.
3. Ramaswamy&Namakumari,Marketing Management,NewDelhi,Macmillan India
Ltd.,2002,3rd Edition.
A Questionnaire which was prepared as per the market survey
requirement essential in the course of summer training titling “To
understand consumer behavior and Marketing Analysis” is as under:
Address: -
__________________________________________________________
Two Wheeler
Four Wheeler
TVS Motors
LML
Other , Please mention
Q.4According to you how long old are you aware with name of Hero
Honda Motors.?
> 10 yrs
> 5 yrs
> 1 yrs
Q.5 Are you satisfied with the use of Hero Honda Bikes currently in
use?
Yes No
Q.6 If No, would you to switch over to our premium company brand
Hero Honda Motors?
Yes No
Q.7 Does ever any harm happened with the use of these Hero Honda
Motors?
Yes No
Q.9 Have you been provided with the after sales service regarding Hero
Honda bikes?
Yes No
Yes No