A SEMINAR ON SATELLITE RADIO TV SYSTEM

By

Under the guidance of

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 ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people
concerned and this particular project is of no exception. A project of the
Satellite Radio TV System is surely a result of tremendous support, guidance,
encouragement and help.

Wish to place on record my sincere attitude to I thank them for their

constructive help and encouragement throughout the seminar. Without their
support and guidance taking this would not have been possible.

Also, wish to acknowledge enthusiastic encouragement and support extended to

me by my family members. At last,

I would like to thank all the faculty to help me completing this project. I am also
thankful to my friends who provided me their constant support and
assistance.

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 EXECUTIVE SUMMARY

Management is that function of enterprise, which concern itself with the direction,
and control of various actives to attain business objectives. It is the art of preparing.
Organizing and directing human efforts to control the forces and utilize the material
of nature for the benefit of man.

As a matter of fact the management thereby provides the scientific technique to deal
with various problems in the area of management and the manager mixes some art of
it and tries to short the gap of ignorance it provide a chain of solution of critical
problem to a manager.

Our institute has come long way narrows this gap by imparting the modern scientific
management principal’s underline its concept to those who would be managers.

I work on this project report and my topic is “ANALYSIS OF CUSTOMER’S

ATTITUDE TOWARDS HERO AFTER THE EXPIRY OF JOINT VENTURE
BETWEEN HERO AND HONDA”

The work has been compiled to present the relevant facts and opinion on the subject
in a proper prospective and in an Objective sprit. The fact and Ideas has been
gathered from different sources.

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 TABLE OF CONTENT

 ACKNOWLEDGEMENT
 EXECUTIVE SUMMARY
 INDEX
CHAPTER-I
 CONCEPTUAL DISCRIPTION OF TOPIC
CHAPTER-II
 SATELLITE RADIO TV SYSTEM
CHAPTER-III
 BASICS OF SATELLITES
I. TYPES OF SATELLITES
II. CAPACITY ALLOCATION
CHAPTER-IV
 HOW DO SATELLITES WORK
 ADVANTAGES OF SATELLITES
CHAPTER -V
 FINDING CONCLUSIONS AND SUGGESTIONS
 ANNEXURE
QUESTIONNAIRE

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 INTRODUCTION

GENERAL INTRODUCTION TO THE STUDY

Hero Moto Corp formally Hero Honda is a MOTORCYCLE and SCOOTER

manufacturer based in India. Hero Honda started in 1984 as a joint a. 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

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 CONCUPETUL BACKGROUND

Market

The term market may be considered as a convenient meeting place where buyers and
sellers gather together for the exchange of goods and services. Market means a group
of people having unmet wants, purchasing power to make their demand effective and
the will to spend their income to fulfill those wants. Today a market is equated with
the total demand.
The American marketing association defines a market, ‘as the aggregate demand of
Potential buyers for a product or service’. Under keen competition, a marketer wants
to create or capture and retain the market i.e.
Customer demand through an appropriate marketing mix offered to a target market.
The market offering i.e. supply must meet customer demand, which are unmet needs
and desires.

Marketing

Marketing is a comprehensive term and it includes all resources and set of activities
necessary to direct and facilitate the flow of goods and services form the producer to
the consumer through the process of distribution. Businessmen regards marketing as a
management function to plan promote and deliver products to the clients or
customers.
Human efforts, finance and management constitute the primary resources in
marketing.
We have twin activities, which are most significant in marketing:
1. matching the product with demand i.e. customer needs and desires or the target
market.
2. The transfer of ownership and possession at every stage in the flow of goods from
the primary producer to the ultimate consumer.
The American marketing association defines marketing as the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and
services to create exchanges that satisfy individual and organizational objectives.

Marketing Research

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Marketing research is the systematic gathering, recording and analyzing of the data
about problems connected to the marketing of goods and services i.e. problems
relating to product, price, promotion and distribution of the 4p’s of the marketing
mix.
Marketing research is concerned with all those factors, which have a direct impact
upon the marketing of products and services. Marketing research has grown along
with the expanded role of marketing as the focus for the business decision-making.

Need of marketing research

 Marketing research is conducted for different purposes. They are:

 To estimate the potential market for a new product.
 To know the reactions of consumers to a product already existing in the market.
 To find out the general marketing condition and tendencies.
 To know the types of consumer buying and their buying motives.
 To know the reactions of failure of a product already in the market.
 To assess the strength and weakness of competitors.

Customer perception

Perception is the sensing of stimuli external to the individual organism the act or
process comprehending the world in which the individual exists.
Perception has been defined by social psychologists as the “Complex process” by
which People select organize and interpret sensory stimulation in to a meaningful and
coherent Picture of the work.

Cultural Factors

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Cultural factors exert the broadest and deepest influence on consumer behavior. The
roles played by the buyers culture, subculture and social class are particularly
important. Culture refers to that complex whole which includes in it knowledge,
beliefs, art or anything man acquires as a member of society Subculture Each
culture consists of smaller subcultures that provide more specific identification
and socialization for their members. Sub cultures include nationalities, religions,
racial groups and geographic regions.

Social Class

Virtually all-human societies exhibit social stratification. Stratification sometimes

takes the form of a caste system where the members of different castes are reared for
certain roles and cannot change their caste membership more frequently; stratification
takes the form of social class.

Reference Groups

A persons reference groups consists of all the groups that have a direct or indirect
Influence on the person’s attitudes or behavior. of Family
The family is the most important consumer buying organization in the society and it
constitutes the most influential primary reference group. Roles and statuses
A person participates in many groups, family, clubs, organizations etc.

Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes, furniture
and recreation is all age related.
Consumption is shaped by the family life cycle. Marketers often choose life-cycle
Groups as their target market.

Occupation and economic circumstances

Occupation also influences a person’s consumption pattern. Product choice is greatly

affected by economic circumstances; spendable income, savings and assets, debts,
borrowing power and attitude toward spending versus saving.
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Lifestyle

People from the same subculture, social class, and occupation may lead quite
different lifestyles. A lifestyle is the person’s pattern of living in the world expressed
in activities, interests and opinions. Lifestyle portrays the world person interacting
with his or her environment.

Personality and self concept

Each person has a distinct personality that influences buying behavior. It is that
Distinguishing psychological characteristics that lead to relatively consistent and
Enduring responses to environment. Related to personality is self-concept or self
image. Marketers try to develop brand images that match target markets self image.

Motivations

A person has many needs at a given time. A need becomes a motive when it is
aroused to a sufficient level of intensity. A motive is a need that is sufficiently
pressing to drive the person to act.

Scope of the study

The study helps in having an awareness of customer satisfaction towards “Hero

Honda”. As the product had a good reputation in the market, this study will help to
know that how Hero Honda lost their grip in motor bike industry. It also helps us to
increase our practical knowledge towards marketing of a company. Marketing is
taken as the functional area as the customer satisfaction is to be taken into account.

Replacement demand to be a key contributor to 2W industry

volumes going forward
According to estimates, around 50% of the total domestic sales of 2W are now made
to first-time buyers, 30% to customers looking to upgrade from their existing vehicle,

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and 20% to buyers seeking a second vehicle for the household. The break-up suggests
that currently around 50% of the sales in the domestic 2W market are made to
replacement buyers. Industry estimates also suggest that the 2W ownership cycle has
now shrunk to less than five years. Considering that the industry has sold around 79
million 2W in the domestic market since the turn of the century, the total replacement
demand works out to a fairly large number. Add to this the healthy growth in sales to
first-time buyers in recent years, driven in particular by sales to the rural market, the
replacement opportunity could only increase in the future.
Hero MotoCorp Limited (HMC) is the World's single largest two-wheeler motorcycle
company. Honda Motor Company of Japan and the Hero Group entered a joint
venture to setup Hero Honda Motors Limited in 1984. The joint venture not only
created the world's single largest two wheeler company but also one of the most
successful joint ventures worldwide. The 26 year old Joint Venture finally ended in
December, 2010 with the Munjal buying the 26% stake of Honda for an amount
believed to be in the region of USD 1.4 billion at a 30% discount. Following HMC's
exit, the Munjal Group now owns 52.2 per cent stake in Hero Honda Motors through
Hero Investments Pvt. Ltd. (HIPL) (43.3 per cent) and Bahadur Chand Investments
(8.7 per cent). Two private equity firms, namely Bain Capital and Lathe Investments
Pvt. Ltd., have funded Munjal Group's buyout of Honda Motor's 26 % stake and now
own 29 % of HIPL.

Split with Honda

Hero Honda Motors Ltd. and Honda Motors recently concluded the formalities
associated with Honda's exit through sale of the 26 per cent stake it held in HHML.
The split with Honda does create some concerns in the form of absence of technology
to back future product launches as well as brand perception-related issues. The

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current agreement is due to expire in 2014 until which time HHML may continue to
source technology from HONDA and its affiliates in return for royalty. HHML's
management has indicated that royalty payments for new models will remain
restricted to 3-5 per cent of sales despite the split. However, simultaneously; HHML
will have to incur higher expenditure on setting up internal R&D capabilities. The
company could choose to develop internal capabilities or tie-up with domestic or
international firms capable to provide the needed technical expertise for future
launches.

Comparing the fundamentals of Hero MotoCorp with the other players in the two-
wheeler segment, it can be observed that:
 Based on the P/E ratio the stock seems to be overvalued if compared to its closest
competitor Bajaj Auto Ltd. (BAL) as on 31st September.
 Going further and factoring in the predicted growth rate (growth for BAL and TVS
calculated as a multiple of ROE and retention ratio of last five years) for the next few
years, BAL is still undervalued and as such looks like a more lucrative option to
invest in as compared to HMC.

VISION

The story of Hero Honda began 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.

MISSION

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.

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.STRATEGY

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.

MANUFACTURING

Hero MotoCorp two wheelers 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 based at Haridwar, in the hill state of Uttrakhand

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 Capital expenditure
Hero Honda plans to expand its total installed capacity from 6.0 million units to
around 6.6 million units by the end of 2011 through expansion of its Hardwar
plant, (which is eligible for various excise duty and income tax exemptions). This
Brownfield expansion would require an investment of Rs 1.0-1.2 billion. The
company is also looking for setting up its fourth plant, for which it has shortlisted
three states - Gujarat, Tamil Nadu and Karnataka. The new plant is likely to have
an initial installed capacity of 0.5 to 0.8 million units.

DRIVERS FOR ADOPTION OF THE HERO MOTOCORP

TECHNOLOGY Ltd.

The Indian manufacturing Industry that has tremendous cost pressures is adopting
information technology in a big way to remain cost competitive and improve
efficiencies. Today Hero MotoCorp Ltd., world’s largest two wheeler company, has
some of the leading edge technologies that are supporting business achieve its
goals.

Apart from the business benefits of implementing any technology being the key
driver, the organizational culture of exploration and espousal of new technology
has played an important role in driving technology adoption. The key role of the
CIO and the other members of the senior management team is to nurture an
environment where people are not averse to taking risk in early adoption of
technologies. As long as it makes business sense and the initiatives are within
agreed parameters, management adequately supports these initiatives.

Over the years, the need to push the deployment of technology in the organization
has seen a phenomenal change with a major pull now coming from users to deploy
IT based solutions and automation so as to enable them to utilize their time better
in delivering business goals. While the users have realized the immense benefits of
technology in an official set-up, another factor for rapidly growing adoption has

been the increasing penetration of IT in the daily life of people. With things like
internet banking, on-line bookings or the advent of social networking, IT has
become an integral part of the life of users.

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HERO IS THE NAME USED BY THE MUNJAL BROTHERS FOR THEIR
FLAGSHIP COMPANY HERO CYLE LTD.
• THE NEW IDENTITY AND LOGO WAS DEVELOPED BY LONDON
FIRM WOLFF OLIN’S.

HERO MOTOCORP LTD . BRIGHT MOTORS

• THE SHOWROOM HAD 4 DEPARTMENTS,NAMELY:

• ENQUIRY
• FINANCING
• SERVICE
• SALES

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 CHAPTER-TWO
INDUSTRY PROFILE

Company profile
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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 own 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 emphasized 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 (1984–2010) has come from the
Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gorgon in

Haryana and at Hardwar 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 2016-17. 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.

History

Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd.

1956 -- Formation of Hero Cycles in Ludhiana (majestic auto limited)
1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984 -- Hero Honda Motors Ltd. incorporated
1985 -- Hero Honda motorcycle CD 100 launched.
1989 -- Hero Honda motorcycle Sleek launched.
1991 -- Hero Honda motorcycle CD 100 SS launched.
1994 -- Hero Honda motorcycle Splendor launched.
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 1997 -- Hero Honda Motorcycle Street launched.
1999 -- Hero Honda motorcycle CBZ launched.
2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor,
Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma
launched.
2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ
Launched.
2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD
Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and
Hero Honda Scooter Pleasure.
2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of
Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle
Passion Plus and Hero Honda motorcycle Hunk launched.
2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Extreme,
Glamour, Glamour Fi and Hero Honda motorcycle Passion pro launched.
2009 -- New Models of Hero Honda motorcycle Karizma: Karizma - ZMR and
limited edition of Hero Honda motorcycle Hunk launched
2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero
Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor
launched.
2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ
Extreme, and Karizma launched. New licensing arrangement signed between Hero
and Honda. August-- Hero and Honda part company, thus forming Hero MotoCorp
and Honda moving out of the Hero Honda joint venture. November—Hero
launched its first ever Off Road Bike Named Hero "Impulse". Termination of
Honda joint venture Main article: Hero Honda split In December 2010, the Board
of Directors of the Hero Honda Group have decided to terminate the joint venture
between Hero Group of India and Honda of Japan in a phased manner.

The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda.
Under the joint venture Hero Group could not export to international markets
(except Sri Lanka) and the termination would mean that Hero Group can now
export. Since the beginning, the Hero Group relied on their Japanese partner
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Honda for the technology in their bikes. So there are concerns that the Hero Group
might not be able to sustain the performance of the Joint Venture alone,

Hero MotoCorp
The new brand identity and logo, Hero MotoCorp, was developed by the London
firm Wolff Olin’s. The logo was revealed on 9 August 2011 in London, the day
before the third test match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is
free to use any vendors for its components instead of just Honda-approved
vendors.

Company performance

During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of
12% over last year. In the same year, the company had a market share of 57% in
the Indian market. Hero Honda sells more two wheelers than the second, third and
fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda
Splendor sells more than one million units per year.

Recognition

Logo of Hero Honda, as the company was known till Aug. 2011
The Brand Trust Report published by Trust Research Advisory has ranked Hero
Honda in the 13th position among the brands in India. Motorcycle models See
also: Category: Hero Honda motorcycles , Sleek., Street ,Achiever Ambition 133,
Ambition 135 CBZ, CBZ Star, CBZ Extreme CD 100, CD 100 SS, Hero Honda
Joy, CD Dawn, CD Deluxe, CD Deluxe (Self Start) Glamour, Glamour Fi Hunk
Karizma, Karizma R, Karamu ZMR FI Passion, Passion Plus, Passion Pro
Pleasure , Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor,
Splendor NXG, Splendor PRO.Suppliers.

PRODUCT STRATEGY

In its recently set up R&D facility and along with new technical partners the
USbased EBR, and a rumored tie-up with Austrian power train expert AVL the

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company is working on several new product strategies. Apart from larger engines
for high-end models, downsizing engines below its current starting point of 100cc
is also being looked at. Hero's increased interest in the mass segment is underlined
by the fact that 88 per cent of its 4.53 million two wheeler sales (April-December
2011) came from the up to 125cc segment. As this segment represents 70 per cent
of total domestic bike sales, Hero commands a 45 per cent market share overall.

“It's easy to make something like a moped, but does that serve your purpose. A
moped is not as successful in this country since it is not rugged and sturdy as per
the usage our consumers the kind of loading patterns and driving habits. We have
to have a real motorcycle,” Mr. Munjal said. Industry sources said Hero had been
eyeing this segment for the past few years but had been constrained from
developing new technologies under the terms of its 27-year-old joint venture
agreement with Honda. That partnership formally ended in March last year, paving
the way for Hero to set up its own research and development facility and seek fresh
alliances.

Hero MotoCorp, AVL pair up for engine development India’s largest two-wheeler
maker by volumes, Hero MotoCorp will now work with world’s largest privately
owned engine developer, AVL Engineering, to share its technology for
manufacturing Hero vehicles‟ engines that would be developed in-house.

“We have tied up with AVL to develop our in-house capabilities in technologies. A
team from our R&D division is already in Austria working in close coordination
with AVL ITC (Indian Technical Centre) based in Gudgeons,

However, if a company like Hero is trying to branch out and establish itself as a
player in a much larger market and they are successful in their acquisition, sooner
or later, motorcycles with Ducati's technology may begin to appear with the Hero
nameplate. Hero in Moto Like I said, this could get very interesting, especially as
the other potential buyers begin to see new and unexpected suitors moving in.

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Hero MotoCorp unveils its new global corporate identity .The largest two wheeler
producer in the country,

Hero MotoCorp (formerly known as Hero Honda) has unveiled its new global
corporate identity. The new avatar of the company, not only marks the end of 26
year old pact of Munjal family and Japan’s Honda Motor but also establishes, Hero
group as the biggest sole entity in its space.
The mandate for re-designing the brand identity including the brand architecture,
name, logo and positioning has been accomplished by Wolff Online, a global brand
& innovation specialist and a part of the Omnicom group.
The new logo of the two-wheeler major shows the letter „H‟ in capital with a neat
white background along with „Hero‟ written beneath in Red. The black color in the
logo stands for solidity and premiumness while the Red gives a feeling of energy,
passion, and confidence.

To represent, Hero in 3D, the logo even has a triangle, trapezoid and a
parallelogram in the first letter of its name. The sharp edge of the logo depicts the
style, engineering, innovation and connection with the new brand.
Regarding the company’s new branding, Pawan Munjal, MD & CEO, Hero
MotoCorp said, “Through this we shall establish a new paradigm.”
The company’s old logo was Red in color, with an amalgamation of Hero and
Honda in it.

The company has recently bought Law & Kenneth as its creative agency on board.
With this new identity, the company aims to surpass the 10m unit’s annual sales,
with a $10b turnover in five years.

Hero Moto Corp to invest INR 1200cr in Gujarat plant

Business Line reported that Hero MotoCorp is expected to announce plans to set
up its fourth plant in Gujarat in March itself, even as talks speed up for a fifth
facility likely at Karnataka. Apart from feeding growing local demand, additional

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capacity would help the two wheeler market leader to meet its USD 1 billion
export target by 2020.

Sources close to the development said that in a deal that has already been
“finalized with the Gujarat Government,” the company is likely to invest about
INR 1,200cr for a two million unit capacity plant set up over two phases. Chosen
because of the proximity to ports, the location is a 300-acre plot close to General
Motors' car plant in Halol, Central Gujarat. Mr. Pawn Munjal MD & CEO of Hero
MotoCorp told Business Line that “Within this month, I should be making the
announcement for the new plant.

It will get to those levels (as Hardwar plant's 2.5 million unit annual capacity), but
will have modular capacities.” State officials said that for the fifth plant expected
to focus on the south Indian market, a 500 acre plot near TATA Motors' plant at
Dharwad, Karnataka, has been offered by the Karnataka Government. This comes
after months of discussions that company officials reportedly held with many
States such as Tamil Nadu, Rajasthan and Himachal Pradesh

Hero MotoCorp in Talks with ‘Many’ Bankers on Possible Ducati Acquisition

Hero MotoCorp Ltd. (HMCL), India’s biggest motorcycle maker, is in talks with
bankers about buying Ducati Motor Holding Spa as it seeks technology to enhance
its bikes and expand its business globally.

“Lots of people have been coming to us with Ducati: Not one banker but many
bankers,” Pawn Kant Munjal, the managing director of Hero MotoCorp, said
yesterday in an interview in New Delhi. “We’re talking to a lot of people. Not just
Ducati, whoever comes to us, we talk to them.”

Hero, which in December 2010 decided to exit a 26-year partnership with Honda
Motor Co. (7267), is looking to gain technology through partnerships and

acquisitions after that licensing relationship ends in 2014. The company has cash
reserves of about $1 billion, Munjal said.

Invest industrial Spa, the Milan-based private-equity firm that owns Ducati, may
hold an initial public offering of the luxury-motorcycle maker in Hong Kong this
year or sell it to a rival, two people familiar with the plans said last month,
21
declining to be identified because the plans are private. A spokesman for Invest
industrial wasn’t immediately available to comment late yesterday.

Motorcycle makers Hero and Bajaj Auto Ltd. (BJAUT) are looking to expand their
markets amid increased competition in the world’s second-biggest motorcycle
market as the Indian units of Honda, Yamaha Motor Co. and Suzuki Motor Co.
expand capacity in the country. Only China buys more motorcycles.
Looking Overseas

Motorcycle sales in India grew 15 percent in 2011 to 9.95 million units,

according to data from the Society of Indian Automobile Manufacturers. The
industry body expects deliveries of two-wheelers, including motorcycles and
scooters, in the year beginning April 1 will increase 11 percent to 14 percent.
Hero is looking to begin sales in Africa and Latin America this year as it tries to
mimic the strategy of its nearest domestic rival, Bajaj Auto. Bajaj sells more than
35 percent of its products overseas and expects to exceed its export target of 1.5
million units in the year ending.

Hero aims to export 1 million units annually in five or six years, Munjal said.
“We’ve been seen as a utility-bike maker, fuel-efficient bikes, and somebody who’s
at the lower level of the market, who’s more small-town and rural-market
focused,” said Munjal.

“So our ambition is to become one of the biggest global two- wheeler players and
to do that, you cannot only be in one small segment.”
Ducati, whose bikes are owned by actors such as Brad Pitt and Tom Cruise, was
delisted in 2008 from the Milan stock exchange.

Hero may export bikes

Expects to sell 1 million 2-wheelers abroad by 2016-17 and generate 10% of its
total revenue from exports by 2020,

Hero MotoCorp Ltd will start exporting scooters and motorcycles sometime in the
April-June quarter this year, a year after it broke up with Japan’s Honda Motor Co.

22
Ltd after a 27-year-long partnership that effectively prevented it from tapping
overseas markets for its products.

A senior Hero executive, on condition of anonymity, said the firm is also

identifying overseas locations for assembly plants (factories that assemble vehicles
from parts). “We’re open to set up an assembly plant if (the) volumes justify it.
There are (also) some countries where import duties are on a higher side...that may
require us to assemble locally,” he said. Typically, import duty on a complete
scooter or bike is higher than that on parts.

As part of the joint venture pact between the Hero Group and Honda in 1984, Hero
was not allowed to export motorcycles to most large markets where Honda had its
own assembly units. After breaking up with Honda, Hero created a separate arm
focused on export markets, Hero International Business.

The African market for two-wheelers is estimated to be one million units per year,
according to Sagan Pala née, senior regional leader and auto expert (South Africa)
at conic can enter them due to dual-fuel usage,” Jinesh Gandhi and Manish Verma,
sector analysts at Motilal Oswal Securities Ltd, a Mumbai-based brokerage firm,
wrote in a report.
In order to build its brand overseas, the firm also plans to be present at prominent
motor shows, Munjal said. “Last year, we were present at Milan Motor Show and
this year we’ll be going to Brazil, which is also famous for motorcycles,” he said.
A year ago in March, Hero Group bought Honda’s 26% stake in Hero Honda, now
Hero MotoCorp, at half the market value. Hero Investments Pvt. Ltd, the
investment arm of Hero Group, paid Rs. 3,842cr to buy Honda’s stake in Hero
Honda. Tags - Find More Articles On: Hero MotoCorp Exports Bikes MotorCycles
Auto.

2-Wheeler

Auto Expo 2012: Hero MotoCorp unveils indigenously developed Hybrid Scooter
After launching two motorcycles and a scooter for men a couple of days ago, Hero
MotoCorp on Friday unveiled India's first concept hybrid scooter at the 11th Auto
Expo. The scooter is being developed in association with a foreign consultant and
is first ever series hybrid scooter from India. We are showing the rest of the world
that we have arrived," Hero MotoCorp Managing Director and Chief Executive
23
Officer Pawn Munjal said. The concept hybrid scooter-LEAP-indigenously
developed with the help of an international consultant, he added. Talking about the
launch of the scooter,

Munjal said, "we will definitely product ionize it in future. We have to work a lot
for launching it commercially. So it will take some time." Elaborating on the
technology he said, "the hybrid scooter will have an engine that gets started on the
battery power comes down." When asked about sales, Munjal said, "2012 may not
be as good as 2011 but we will still see a double digit growth." In August last year,
India's largest two-wheeler maker Hero MotoCorp (formerly Hero Honda) had
ended its 27 years long relationship with Honda.

Hero MotoCorp partners with US-based Erik Buell Racing Hero MotoCorp formed
the partnership to bring next-generation high-end bikes to India. It will further
augment R&D capabilities through multiple alliances.
Hero MotoCorp Ltd (HMCL), said it partnered with US-based Erik Buell Racing
(EBR) for sharing technology. As part of the partnership, HMCL will receive
support in terms of cutting-edge technology and design to develop future models
from EBR - the East Troy, Wisconsin-based firm, which specializes in designing
and manufacturing powerful and high-speed motorcycles. Announcing this, Pawn
Munjal, managing director and chief executive officer, Hero MotoCorp, said “It
gives me immense pleasure to welcome Erik Buell to the exciting world of Hero
MotoCorp. This is in keeping with my objective of quickly scaling up our own in-
house R&D capabilities to a global two-wheeler technology power-house by
leveraging a network of strategic international alliances. Erik and his team have
been working closely with our engineers and designers to develop our next-
generation range of products.

With cutting-edge technology and first-of-its-kind features

” Erik F Buell, chairman and 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. I have personally been deeply impressed with and inspired by Pawn’s
vision. He has given us a challenging brief, and our highly-motivated team is
working towards giving shape to that dream. We look forward to designing

24
technology solutions which are in line with contemporary global standards and also
futuristic in their appeal and utility.” Through this alliance,

Hero MotoCorp will also, for the first time, enter the exciting world of
international motorcycle racing. The company will mark its foray into the racing
arena by sponsoring two teams: Team Hero and AMSOIL Hero - a first by any
Indian two-wheeler company at the AMA Pro Racing National Guard Superbikes
Championship. Popular young racer Danny Slick will represent “Team Hero”
while another well-known racer Geoff May will represent team AMSOIL Hero –
both riding on EBR 1190RS bikes.

Hero MotoCorp also showcased the EBR 1190RS bike at the press conference.
The first race is scheduled at the Daytona Speedway, at Daytona beach, Florida,
USA between 15 March 2012 and 17 March 2012. Hero MotoCorp is also
developing the concept hybrid scooter called „Leap‟, showcased at the recently-
concluded Auto Expo, in collaboration with EBR. EBR 1190RS is the flagship bike
from EBR, and an exclusive engineering marvel, as the company is producing only
100 inaugural units of these, including a handful of the carbon edition package.
The EBR 1190RS is taking the American motorcycle racing world by storm with
its performance, styling and handling

Insider Story: How Hero Honda became Hero MotoCorp

On November 1, Hero MotoCorp, the new avatar of Hero Honda, announced that
its dealers sold a record 650,000 motorcycles and scooters in October.
Farmers had harvested their crops, and salaried people had got Diwali bonuses; the
company had no reason to complain.

25
Some days before that, it had declared its financial results for the quarter ended
September 2011, the first full quarter without Honda as a shareholder, which
showed that sale as well as profit had hit at an all-time high.

For several years, the Manuals, the promoters of the company, have been known as
sharp businessmen but their success was always credited to technology and
innovation from Honda. The ride without Honda was the real test of their skills.
The Munjals and Honda had formed Hero Honda, a 26-26 joint venture, in the late-
1980s. The first sign of discord became visible over ten years ago when Honda set
up a 100 per cent arm, Honda Motorcycles and Scooters India.

Finally, on December 16 last year, Hero Honda informed the stock markets that the
partnership was over and Honda would soon exit the company.
In the days that preceded the announcement, the Munjals had formed a core team
of three people to assess if life was possible without Honda.

Despite its significantly higher base vise-a-vise competitors, Company’s two-

wheeler sales improved by 17%; from 4.6 to 5.4 million units during the year to
garner over 40%two wheeler market shares. In the domestic two wheeler market, it
had a share of 44.5%, with sales of 5.2 million.

In the motorcycle segment, the Company sold over five million units. In the
domestic market, the Company sold over 4.9 million motorcycles at a growth of
15%, thereby capturing 54.6% domestic motorcycle market share.
In the scooter segment Pleasure, grew a whopping 65% during the year, with sales
of3.42 lakh units. This single scooter brand now accounts for over 16% market
share.

Across various motorcycle segments, the Company bested industry growth in the
entry segment by growing in excess of 17%, and selling more than 1.5 million
units.
In the deluxe segment, the Company captured 68.9% share. With sales of 3.8
million units, the Company registered growth in excess of 12%.
Financial Scorecard
Sales

26
The Company’s sales grew by 17.44%. It ended the year with a domestic market
share of around 45%. The Company clocked a sales volume of 5,402,444 units in
2010-11, compared to 4,600,130 units in 2009-10. In value terms total sales (net of
excise duty) increased by 22.1% to Rs. 19,245 crores from Rs. 15,758 crores in
2009-10.
Profitability
The Company’s earnings before interest depreciation and taxes (EBITDA) margins
decreased from 17.45% in 2009-10 to 13.49% in 2010-11 and the Operating Profit
(PBT before other income) decreased from Rs. 2,575.48 crores in 2009-10 to Rs.
2,214.61 crores in2010-11. The margin fell despite healthy growth in the sales
volume on account of higher prices of raw materials and components and
additional cost of meeting emission norms
Other Income, including non-operating income
Other income increased by 24.7% from Rs. 341 crores in 2009-10 to Rs. 425 crores
in2010-11.

Cash flows

The free cash flow from operations during the year stood at Rs. 2,288.11 crores
(previous year 2,686.64 crores). The same have been deployed in capital assets,
investments and paid out as dividends during the year.
Capital expenditure
During the year, the Company incurred a capital expenditure of Rs. 364.12 crores.
The funds went into capacity expansion and replacements.
Raw material costs
Hardening of metal prices particularly steel, copper, aluminums and nickel during
the year results in escalation in material costs. Raw material costs as a proportion
of total cost increased 68.1% to 73.3% and adversely impacted EBITDA margins.
Current asset turnover

This ratio, which shows sales as a proportion of average current assets, decreased
from17.2 to 15.5 times, on account of higher average inventory and loans and
advances.
Debt structure
Hero Honda has been a debt free company for the last 10 years. The unsecured
loan of Rs. 32.71 crores from the state government of Haryana on account of sales
tax deferment is interest free and has no holding costs. Net interest payment by the
Company has been negative during the last few years.
27
Dividend policy
Over the years, the Company has consistently followed a policy of paying high
dividends, keeping in mind the cash-generating capacities; the expected capital
needs other business and strategic considerations. For 2010-11, the Board has
recommended a dividend of 1750% higher than 1500% declared in previous year,
and has maintained a payout ratio of 42.1% vise-a-vise 31.3% in the previous year.
Further, it has also declared 3500%interim dividend (previous year 4000%).

Working capital management

The Company has always sought to efficiently use the various components of
working capital cycle. It has been able to effectively control the receivable and
inventories, enabling it to continue to operation negative working capital.

28
PRODUCTS OF HERO MOTO CORP

29
IMPULSE
IT’S A 150 CC BIKE, SPECIALLY DESIGNED FOR DIRT BIKING.
ITS COST IS RS.74000 (EX SHOW ROOM PRICE

HERO MAESTRO

30
IT’S A 110 CC SCOOTER (GEARLESS)
ITS COST IS RS. 41500 (EX SHOW ROOM PRICE)

31
 HERO IGNITOR

IT’S A 125 CC BIKE

ITS COST IS RS.55900 (EX SHOW ROOM PRICES)

32
 CHAPTER-THREE
RESEARCH METHODOLOGY

OBJECTIVES

33
• TO KNOW THE ATTITUDE OF PEOPLE TOWARDS HERO
MOTO CORP.

• TO KNOW THE FEEDBACK OF CUSTOMERS REGARDING

HERO PRODUCTS.

• TO KNOW THE CHANGE IN PREFERNCE OF CUSTOMER

AFTER THE EXPIRY OF JOINT VENTURE.

RESEARCH METHODOLOGY

DATA SOURCE
34
PRIMARY DATA

1. Personal Interview
2. Administration of schedule in the organization.
3. Administration of structured questionnaire.
4. Customer

SAMPLING PROCEDURE

Convenient Sampling.

AREA OF COVERAGE

LUCKNOW

SAMPLING SIZE

58 respondents.

RESEARCH DESIGN

Exploratory Research.

RESEARCH APPROACH
35
Survey Method.

RESEARCH INSTRUMENT

1. Structured questionnaire.
2. Personal Interview.
3. Schedule Administration.

36
 CHAPTER FOUR
FINDING AND INTERPRETATION

DATA ANALYSIS

Q1: ARE YOU HAVING A MOTORBIKE?

A: YES 47 81%

B: NO 11 19%

37
INTERPRETATION:

ABOUT 47 PEOPLE REPLIED YES AND 11 REPLIED NO. THIS MEANS

THAT MAJORITY OF PEOPLE WHO VISITED BRIGHT MOTORS WERE
HAVING THEIR OWN TWO WHEELERS.

Q2: IF YES, WHICH MANUFACTURER’S BIKE ARE YOU HAVING?

A: HERO HONDA 25 43%

B: HONDA 12 21%
C: BAJAJ 08 14%
D: YAMAHA 05 8%
E: TVS 08 14%

38
INTERPRETATION:
.

FROM THE ABOVE ANALYSIS IT IS CLEAR THAT MOST OF THE PEOPLE

WHO ARE HAVING TWO WHEELERS ARE MOSTLY HERO HONDA
CUSTOMERS.I.E. 43% THE REMAINING 21% WERE HAVING HONDA
VEHICLES.BAJAJ AND TVS CUSTOERS WERE 14% EACH AND THE
REMAINING 8% CUSTOMERS WERE OF YAMAHA.

Q3: (IF NOT WITH HERO) BY WHICH FACTOR ARE YOU HAVING SUCH
COMPANY’S BIKE?

A: ECONOMY 04 7%
B: BRAND NAME 12 21%
C: BETER SERVICE 08 14%
D: WIDE SERVICE NETWORK 06 10%
E: LOOKS 28 48%

39
INTERPRETATION:

FROM THE ABOVE ANALYSIS IT IS CLEAR THAT MOSTLY PEOPLE GO

FOR BIKE OTHER THAN OF HERO BECAUSE THEY PREFER BETTER
LOOKS AND AFTER THIS THE BRAND NAME.

Q4: WHICH FACTOR OF HERO ATTRACTS YOU MOST?

A:ECONOMIC 28 48%
B:EASY AVAILABILITY OF PARTS 22 38%
BETTER AFTER SALE SERVICE 8 14%

40
INTERPRETATION:

FROM THE ABOVE ANALYSIS IT IS CLEAR THAT MOSTLY PEOPLE

PREFER HERO BECAUSE OF ECONOMY AS PER 28 PEOPLE.22 BELIEVE
BECAUSE OF EASY AVAILABLITY OF PARTS THEY PREFER HERO AND
THE REMAINING PREFER BECAUSE OF ITS AFTER SALE SERVICE.

Q5: WHAT IS YOUR OPINION ABOUT HERO MOTOCORP AFTER EXPIRY

OF JOINT VENTURE?

A: IT WILL SURVIVE 30 52%

B: WILL LOOSE ITS MARKET SHARE 22 38%
C: CANT SAY 6 10%

41
INTERPRETATION:

ALMOST 52% PEOPLE BELIEVE THAT IT WILL SURVICE AND LARGE

NUMBER OF PEOPLE SAID THAT IT WILL LOOSE ITS MARKET SHARE
38% AND THE REMAIING 10% CANT PREDICT.

Q6: ARE YOU AWARE OF NEW TWO WHEELERS LAUNCHED BY HERO

MOTOCORP?

A: YES 49 84%
B: NO 9 16%

42
INTERPRETATION:

FROM THE ABOVE ANALYSIS IT IS CLEAR THAT ALMOST 84% PEOPLE

ARE AWARE ABOUT THE NEW PRODUCTS LAUNCHED BY HERO.

Q7: WHAT IS YOUR OPINION TOWARDS THOSE VEHICLES?

A: GOOD 18 31%
B: SATISFACTORY 32 55%
C: POOR 8 14%

43
INTERPRETATION:

AS 55% PEOPLE FIND THE PRODUCTS SATISFACTORY AND ONLY 31%

PEOPLE FOUND IT GOOD. HERO MOTOCORP STILL NEED TO FOCUS ON
CUSTOMER EXPECTATION.

Q8: IF GIVEN OPTION TO CHOOSE ANY ONE OF HERO AND HONDA,

WHICH WILL YOU PREFER?

A: HERO 38 53%
B: HONDA 27 47%

44
INTERPRETATION:

THOUGH THE JOINT VENTURE ENDED. BUT STILL HERO MOTOCOR IS

STILL HAVING THE BRAND IMAGE BENEFIT.MORE THAN HALF OF
POPULATION ON WHOM SURVEY WAS CONDUCTED REPLIED YES.

Q9: WHY WOULD YOU GO FOR SUCH OPTION?

A: BETTER TECHNOLOGY 25 43%

B: UPTO EXPECTATION 11 19%
C: SATISFACTION 14 24%
D: VAROETY OF PRODUCTS 8 14%

45
INTERPRETATION:

IT IS CLEAR THAT MOST OF THE PEOPLE GO FOR BETTER

TECHNOLOGY AND AFTER THIS THEY LOOK FOR THEIR
SATISFACTION.

Q10: WILL HERO MOTOCORP BE ABLE TO LAUNCH A PRODUCT AS

SUCCESSFUL AS HERO HONDA SPLENDOR?

A: YES 42 79%
B: NO 16 21%

46
INTERPRETATION:

FROM THE ABOVE ANALYSIS IT IS CLEAR THAT ALMOST 79%OF

PEOPLE BELIEVE THAT HERO MOTOCORP WILL BE SUCCESSFUL IN
LAUNCHING A PRODUCT AS SUCCESSFUL AS SPLENDOR

47
 CHAPTER FIVE
CONCLUSION AND SUGGESTION

CONCLUSION

• MOST OF THE PEOPLE ARE AWARE ABOUT HERO MOTOCORP

AND ITS PRODUCTS.

48
 • PEOPLE MOSTLY PREFER HERO PRODUCTS BECAUSE OF ITS

SIMPLICITY AND ECONOMY.

• PEOPLE FIND HERO PRODUCTS SERVICES FOR MORE BETTER

THAN OTHERS IN TERMS OF AVAILABILITY OF PARTS AND

AFTER SALE SERVCES.

SUGGESTION

HERO MOTOCORP SHOULD LOOK AFTER THE REQUIREMENT OF

PEOPLE BEFORE DESIGNING THE PRODUCT.

49
AS NOW A DAY, PEOPLE ARE CONCERNED REGARDING LOOKS, HERO

MOTOCORP SHOULD DOES IN ITS PRODUCT AS PER THE CURRENT

MARKET EXPECTATION

BIBLIOGRAPHY

1:-Hero motocorp attendants.

2:-Hero motocorp websites.
3:-Internet.

50
Questionnaire

NAME:-.........................................................
AGE:-.............................................................
GENDER:-.......................................................
INCOME:-......................................................
OCCUPATION:-...............................................

Q1. DO YOU HAVING A MOTORBIKE?

a. YES ( )
b. NO ( )

Q2. IF YES, Which manufacturer’s bike are you having?

a. HERO HONDA ( )
b. HONDA ( )
c. BAJAJ ( )
d. YAMAHA ( )

51
Q3. (IF NOT WITH HERO) BY WHICH FACTOR ARE YOU HAVING
SUCH COMPANY’S BIKE?

a: ECONOMY ( )
b: BRAND NAME ( )
c: BETER SERVICE ( )
d: WIDE SERVICE NETWORK ( )
e: LOOKS ( )
Q4: WHICH FACTOR OF HERO ATTRACTS YOU MOST?

a: ECONOMIC ( )
b: EASY AVAILABILITY OF PARTS ( )
c: BETTER AFTER SALE SERVICE ( )

Q5: WHAT IS YOUR OPINION ABOUT HERO MOTOCORP AFTER

EXPIRY OF JOINT VENTURE?

a: IT WILL SURVIVE ( )
b: WILL LOOSE ITS MARKET SHARE ( )
c: CAN’T SAY ( )

Q6: ARE YOU AWARE OF NEW TWO WHEELERS LAUNCHED BY

HERO MOTOCORP?

a: YES ( )
b: NO ( )

Q7: WHAT IS YOUR OPINION TOWARDS THOSE VEHICLES?

a: GOOD ( )

52
b: SATISFACTORY ( )
c: POOR ( )

Q8: IF GIVEN OPTION TO CHOOSE ANY ONE OF HERO AND HONDA,

WHICH WILL YOU PREFER?

a: HERO ( )
b: HONDA ( )

Q9: WHY WOULD YOU GO FOR SUCH OPTION?

a: BETTER TECHNOLOGY ( )
b: UPTO EXPECTATION ( )
c: SATISFACTION ( )
d: VAROETY OF PRODUCTS ( )

Q10: WILL HERO MOTOCORP BE ABLE TO LAUNCH A PRODUCT AS

SUCCESSFUL AS HERO HONDA SPLENDOR?

a: YES ( )
b: NO ( )

53