Term project  

QUANTITATIVE ANALYSIS

Hero Honda Motors Ltd.

Submitted to: SUBMITTED BY:

Dr.SADIA SAMAR ALI SAURABH GUPTA
ROLL No.-036
1. Company profile

2. Growth

3. Market share

4. Central tendency
(Mean)

5. Dispersion
(standard deviation)
(coefficient variation)
6. Correlation

7. Conclusion

8. Bibliography
 Hero Honda Motors Limited
Company profile

“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, they are
related to Jagdish Lal MunjalDuring 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
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.
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.

Growth
Hero Honda experienced great growth throughout its early days. The
Munjal family started a modest business of bicycle components. By
2002
Hero Group had sold 86 million bicycles producing 16000 bicycles a
day.
Today Hero Honda has an assembly line of nine different models of
motorcycles available. It holds the record for most popular bike in the
world by sales for Its Splendor model. Hero Honda Motors Limited was
established in joint venture with Honda Motors of Japan in 1984, to
manufacture motorcycles. It is currently the largest producer of Two
Wheelers in the world. It sold 3 million bikes in the year 2005-2006.
Recently it has also entered in scooter manufacturing, with its model
PLEASURE mainly aimed at girls. HUNK is the latest offering from the
HHML stable.
 Data analysis

Table 1 show sales of the Hero Honda for the following years:-

Year Sales(In Rs.Crore)

2005-06 8,719.21

2006-07 9,905.95

2007-08 10,345.01

2008-09 12,325.38

15,839.58
2009-10

 CENTRAL TENDENCY

Calculations of Mean
 Mean( x́ )= Sum Of Observations
Total no. of Observations

x́ = Σ (x)/n
x́=¿ Mean value

Σ (x) = Summation of sales observations

n = total no of observations
x́=¿ 8,719.21+9,905.95+10,345.01+12,325.38+15,839.58

x́=¿ 57135.13 =11,427.026

5
 MEASURE OF DISPERSSION: - we can calculate standard
deviation and coefficient of variation from table 2.

Year Sales(In (x- x́ ) (x- x́ )2

Rs.Crore)

2005-06 8,719.21 −2,707.816 7,332,267.49

2006-07 9,905.95 −1,521.076 2,313,672.198

10,345.01 −1,082.016 1,170,758.624

2007-08

2008-09 12,325.38 898.354 807,039.9093

15,839.58
2009-10 4,412.554 19,470,632.8

Total ∑(x- x́ ) 2 =
31,094,371.02
Standard deviation (σ)=
1 ÷ n∑(x- x́ ) 2 ½
 x́ = mean value ½

X=sales observation

Standard deviation (σ) =

{1÷ 5 ×31,094,371.02}½ =3,109,437.102

Coefficient of Standard variation

σ
x́
= 3,109,437.102 =272.1125428

11,427.026

REGRESSION

Sale (x) Profit(y x- x́ y- ý X2 Y2 Xy

)
8,719.21 971.34
−2,707.816 −290.8 76,024,623.02 943,501.39 8,469,317.44

−404.25
9,905.95 857.89 −1,521.076 98,127,845.4 735,975.25 8,498,215.44
 −1,082.016 −294.26 107,019,231.9 936,791.69 10,012,728.2
10,345.01 967.88 8

19.62 151,914,992.1 1,642,908.69 15,798,179.0

898.354
12,325.38 1,281.7 7
6

4,412.554 969.69 250,892,294.6 4,981,065.14 35,351,249.8

15,839.58 3
2,231.8
3
∑ X2 ∑y2 ∑xy=
¿ 683,978,987 ¿ 9,240,242.16 78,129,690
.06

X́ = X1+X2+X3+X4+X5
N
x́=¿ 57135.13 =11,427.026
5
Ý = Y1 + Y2 + Y3 + Y4 + Y5

Ý = 6,310.7 =1,262.14

Now,

bxy = ∑xy/∑y2

bxy= 78,129,690.06 ¿ 8.45537

9,240,242

byx = ∑xy/∑x2

byx = 78,129,690.06 ¿ 0.114228

683,978,987

Now, taking

Y- Ý = byx (X- X́ )

Y-1,262.14 = 0.114(X – 11,427.026)

Y-1,262.14 = 0.114X -1,3O2.68

Y = 0.114X -40.54
Now, assuming that,

If we increase the sale , profit will be calculate as

follows

We know that,