Introduction

Marketing:

Marketing is so basic that it cannot be considered as a separate function. It is

whole business seen from the point of view of its final results i.e., from the customer’s

point of view. Business is not determined by the produced by the customer.

___ Peter F.Drucker

Marketing is a social and managerial process by which individuals and groups
obtain what they need and want through creating, offering and exchanging products of
value with others.
________ Philip Kotler

American Marketing Association defined marketing as “ The process of

planning and executing the conception, pricing, promotion and distribution of ideas,
goods and services to create exchange that satisfy individual and organizational
objectives.

Marketing Management:
According to Philip Kotler “Marketing management is the process of planning
and executing the conception, pricing, promotion distribution of goods, services and
ideas to create exchange with target groups that satisfy customers and organizational
objectives.
According to Paul Mazer “marketing is an ongoing process of discovering and
translating consumer needs and design into products and services, servicing the

consumer demands with help of Marketing Channel.

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BRAND

Definition:
Brands that consumers generally buy from the same manufacturer repeatedly
over time rather than buying from multiple suppliers within the category. It also refers
to the degree to which a consumer consistently purchases the same brand within a
product class.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed

through intention or behavior, to repurchase a brand continually. It occurs because the
consumer perceives that the brand offers the right product features, image, or level of
quality at the right price. Consumer behavior is habitual because habits are safe and
familiar. In order to create brand loyalty, advertisers must break consumer habits, help
them acquire new habits, and reinforce those habits by reminding consumers of the
value of their purchase and encourage them to continue purchasing those products in
the future.

Understanding the key constructs of trust, commitment and attitudinal brand

loyalty and their respective antecedents, together with the linkages between these
variables is critical if improvement in relationships in a business-to-business setting is
to occur. Trust and commitment are considered to be central constructs of relationship
marketing. Commitment influences the buyer’s choice of seller and trust is a key
driver in this process. Indeed, commitment and trust are critical to any discussion of
business relationships because they encourage exchange partners to work at
preserving the relationship and achieve mutual gains. It is claimed that commitment
and trust will produce efficiency, productivity and effectiveness, all of which are
essential for any long-term project. Once a relationship is established, a high level of
commitment and trust in the sales representative may impact on brand loyalty .

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Principles of Good Brand:

1. Be easy to pronounce.
2. Be easy to remember.
3. Be easy to recognize.
4. Be easy to translate into all languages in the markets where the brand
will be used.
5. Attract attention.
6. Suggest product benefits (e.g.: Easy-Off) or suggest usage (note the
tradeoff with strong trademark protection.)
7. Suggest the company or product image.
8. Distinguish the product's positioning relative to the competition.
9. Be attractive.
10. Stand out among a group of other brands.

Types of Brands:

A number of different types of brands are recognized. A "premium brand"

typically costs more than other products in the same category. These are sometimes
referred to as 'top-shelf' products. An "economy brand" is a brand targeted to a high
price elasticity market segment. They generally position themselves as offering all the
same benefits as a premium product, for an 'economic' price. A "fighting brand" is a
brand created specifically to counter a competitive threat. When a company's name is
used as a product brand name, this is referred to as corporate branding. When one
brand name is used for several related products, this is referred to as family branding.
When all a company's products are given different brand names, this is referred to as
individual branding. When a company uses the brand equity associated with an
existing brand name to introduce a new product or product line, this is referred to as
"brand extension."

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 When large retailers buy products in bulk from manufacturers and put their
own brand name on them, this is called private branding, store brand, white labelling,
private label or own brand. Private brands can be differentiated from "manufacturers'
brands" (also referred to as "national brands"). When different brands work together
to market their products, this is referred to as "co-branding". When a company sells
the rights to use a brand name to another company for use on a non-competing
product or in another geographical area, this is referred to as "brand licensing."

Building Brand Loyalty:

Building brand loyalty can be much like taking care of a pet. It has less to do
with the brand you feed them, and more to do with the way you treat them. As long as
you continue feeding and loving your pet he will return your love by loving you. As a
company you will need both to provide the needed products to the consumers as well
as keep the customers happy.

Providing the product is not only about creating a product, think is in demand,
but it takes researching the market to find out what is in demand. If we have a
product, or you know what it is that you will be producing than researching the
market is still important. We must find out what is currently being offered in the
market you are entering, what needs that product is meeting, and what needs it has left
to meet.

By completing market research before releasing the product you will be able
to make and release a better product. Once we are ready to release the product we will
decide on a marketing strategy and how we are going to make your product well
known to the public. We can choose between advertising agencies, direct marketing,
and even public relations. All of these will bring attention to your product and
business; it is for you to decide what kind of attention you are looking for.

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 After deciding how we will release our product, but before releasing the
product, we will want to prepare for any negatives or road blocks you might
encounter. One of the most important decisions you will need to make is how to
handle negative feedback about your product (positive feedback doesn't need as much
preparation).

One source of negative feedback always count on is going to be from the

competitors. One guy always wants to win, and winning in this case would be selling
more, or providing more service. To combat this negative feed back, and gain the
respect of your consumers, you will need to know your competitors product well.

We see this competitor negativity often in over the counter aches and pain
medication. One popular company is known to be the, "headache," medicine. This
company advertises that they can take away any type of headache including severe
migraines. Their competitor's then use their advertising against this company by
advertising that their pain medication will not only work on headaches, but on all
bodily aches. You will find similar competition when entering the market and it is
best to be prepared ahead of time.

Another source of negative feedback is negative feedback from your

consumers. You cannot always count on exactly what they are not going to like before
they use your product (or it would probably be best to fix it before putting it out in the
market) but you can prepare your company for how you will handle this negative
feedback.

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 A customer wants a company who will listen to their complaints and learn
from them. They also want a company who is willing to fix their mistakes and make
things right with the customer. Learning to do this as a company could be the single
most important step you can take towards brand-loyalty. Often if products are similar
the consumer will make their choice based on price, but more often if products are
similar, the consumer will make their choice based on service.

A pet owner may set out food every day and it won't matter if it is chicken or
steak he is setting out, if he doesn't respect the pet he will never have the respect of
the pet. If a pet owner though lays out food every day and shows respect for the pet, it
still won't matter the flavor of food being laid out, but that owner will win the respect
of his pet and the pet will follow that owner not just because of the food he is fed.

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Conceptual Framework

In the conceptual framework of Figure 1, trust is hypothesized as a direct

antecedent of commitment, and commitment is viewed as an antecedent of attitudinal
brand loyalty. This conceptualization recognizes that the relationship between an
organization and its salespeople and their clients is critical in the business services
sector. Indeed, the relationship a business has with a consultant or service provider
can help insulate the brand from competitors and sometimes from a company’s own
mistakes. In this section, the key constructs in Figure 1 are defined a rationale for the
paths between the constructs is offered.

Commitment Attitudnal
Trust in the
to the sales Brand
sales person
person Loyalty

A Model of the Potential Antecedents of Attitudinal Brand Loyalty

Trust
Trust is a key variable in the establishment of a relationship and is the main
antecedent to commitment. Trust is defined as “confidence in an exchange partner’s
reliability and integrity” Trust is also a component of social exchange literature and is
identified in the services marketing literature as important in creating successful
exchanges. Given the intangible nature of a service and the fact that a service is
consumed as it is purchased, it can be argued that a high degree of trust in the product
and/or supplier required encouraging purchase and repeating purchase. Trust is also
defined as the “perceived credibility and benevolence of a target of trust” More
generally; dimensions of trust include expertise, reliability and internationality.
Although not the focus on this research, antecedents of trust include vulnerability and
uncertainty.

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 Relationships that are characterized as high trust are highly valued by
exchange participants. Thus, exchange participants are more willing to commit to a
relationship if trust is present indeed, some organizations use trust as a risk-reduction
mechanism. That is, if they believe the supplier to be credible and able to perform
their roles effectively, and benevolent, that is, the supplier is interested in the
customer’s welfare, then the perceived risk of exchange tends to be lower .
Furthermore, a purchaser who experiences satisfaction with outcomes is more likely
to trust their supplier in the future. In contrast, an organization that perceives inequity
in the relationship is likely to become dissatisfied and may view the supplier as
exploitive. Finally, it can be argued that the more experience an organization has with
a supplier; the more likely they are to trust that supplier.

Commitment

Relationship commitment is defined in the literature as “an enduring desire to

maintain a valued relationship”. The concept of commitment is new to business-to-
business research; however, it has long been part of the social exchange literature.
Three elements of an organization can be the focus of commitment:

(1) The organization itself,

(2) The organization’s brand and
(3) The organization’s representatives.

Commitment towards the brand or product is a measure of brand loyalty. This

linking of commitment with loyalty has emerged as researchers realized that the
attitude consumers hold towards a brand on its own is not a particularly strong
determinant of behavior, and that commitment to repurchase the brand helps explain
the relationship between attitude and behavior. Commitment is an important
component of marketing relationships commitment captures the buyer’s desire to
maintain a relationship with a particular vendor and reflects the strength of
relationship the buyer has with the buyer’s representative. Relationship with the
consultant is more important than the relationship with the company as a measure of
commitment, as the consultant is viewed as the public face of the company.

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 More generally, researchers have distinguished between trust in a vendor’s
representative and trust in the firm. As an extension of this view, it is argued that
commitment to the vendor’s representative contributes to building high levels of
brand loyalty. In representing the brand to the customer, the sales representative is in
a position to communicate a good deal of information about the product to the
customer and contribute significantly to the development of brand equity. However, it
is important to recognize that brand equity is based on more than simply information
about the brand. The brand equity construct also captures the positive mental
associations held by the consumer in relation to the brand.

A positive relationship between trust and commitment is predicted. Trust is a

determinant of relationship quality in that the level of honesty, believability and
integrity influence how the relationship with the service provider is perceived. The
perceived quality of the relationship then in turn influences the level of commitment
extended towards the service provider.

If the salesperson is perceived to be honest and reliable, then the outcome is a

high perception of quality in the relationship. Conversely, if there is little trust in the
salesperson then the relationship would be perceived as unsatisfactory and no or little
commitment to the salesperson would exist. When the perceived quality of the
relationship is high then there is likely to be high levels of commitment to continuing
the relationship. Hence, high levels of trust are likely to lead to high levels of
commitment to the relationship. Based on this discussion, the following relationship is
expected.

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Attitudinal Brand Loyalty

Brand loyalty has been defined in the literature as a repeat purchase that is a
result of a preference, attitude or market share. These differences in view are reflected
in the behavior a list or cognitive schools of thought. In addition, more recent research
has introduced the affective component as an explicit element of brand loyalty, thus
making brand loyalty tri-partite construct containing affective, cognitive and
behavioral aspects. These three elements can be summarized as consisting of two key
dimensions:
1) Attitudinal
2) Behavioral loyalty.

Attitude captures the affective and cognitive aspects of brand loyalty, such as
brand preference and commitment. In contrast, behavioral brand loyalty is reflected in
the observed repurchase of a brand from a number of available brands A positive
relationship between commitment and brand loyalty is expected. Commitment to the
salesperson is generally conceptualized as affective commitment or a psychological
attachment.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed

through intention or behavior, to repurchase a brand continually. It occurs because the
consumer perceives that the brand offers the right product features, image, or level of
quality at the right price. Consumer behavior is habitual because habits are safe and
familiar. In order to create brand loyalty, advertisers must break consumer habits, help
them acquire new habits, and reinforce those habits by reminding consumers of the
value of their purchase and encourage them to continue purchasing those products in
the future.

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Loyalty

According to Philip Kotler, defines four patterns of behavior: They are

Hard Core Loyals - who buy the brand all the time
Soft Core Loyals - loyal to two or three brands
Shifting Loyals - moving from one brand to another
Switchers - with no loyalty

Brand loyalty refers to the inclination of a consumer to purchase a brand again

and is usually measured in terms of repeat purchase. Consumers are said to be
relatively loyal if they purchase the brand more frequently than a competitor’s. There
are several layers of loyalty however; total loyalty to a brand is probably
unachievable.

Brand Loyalty is the consumer's conscious or unconscious decision, expressed

through intention or behavior, to repurchase a brand continually. It occurs because the
consumer perceives that the brand offers the right product features, image, or level of
quality at the right price.

Consumer behavior is habitual because habits are safe and familiar. In order
to create brand loyalty, advertisers must break consumer habits, help them acquire
new habits, and reinforce those habits by reminding consumers of the value of their
purchase and encourage them to continue purchasing those products in the future.

The image surrounding a company's brand is the principal source of its

competitive advantage and is therefore a valuable strategic asset. Unfortunately, many
companies are not adept at disseminating a strong, clear message that not only
distinguishes their brand from the competitors', but distinguishes it in a memorable
and positive manner.

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 The challenge for all brands is to avoid the pitfalls of portraying a muddled or
negative image, and instead, create a broad brand vision or identity that recognizes a
brand as something greater than a set of attributes that can be imitated or surpassed. In
fact, a company should view its brand to be not just a product or service, but as an
overall brand image that defines a company’s philosophies.

A brand needs more than identity; it needs a personality. Just like a person
without attention-grabbing characteristics, a brand with no personality can easily be
passed right over. A strong symbol or company logo can also help to generate brand
loyalty by making it quickly identifiable.

From the design of a new product to the extension of a mature brand, effective
marketing strategies depend on a thorough understanding of the motivation, learning,
memory, and decision processes that influence what consumers buy Theories of
consumer behavior have been repeatedly linked to managerial decisions involving
development and launching of new products, segmentation, timing of market entry,
and brand management.

Subsequently, the issue of brand loyalty has been examined at great length.
Branding is by far one of the most important factors influencing an item's success or
failure in the marketplace, and can have a dramatic impact on how the "company
behind the brand" is perceived by the buying public. In other words, the brand is not
just a representation of a company's product; it is a symbol of the company itself, and
that is where the core of brand loyalty lies.

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Three reasons for Brand Loyalty:

Higher sales volume : Through reducing customer loss.

Premium pricing ability: As loyal consumers are less sensitive to price changes,
generally, they are willing to pay more for their preferred brand.

Lower costs for advertising, marketing and distribution: Brand loyalists are
willing to search for their favorite brand and are less sensitive to competitive
promotions .

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Branding approaches :

Company name :

Often, especially in the industrial sector, it is just the company's name which is
promoted (leading to one of the most powerful statements of "branding"; the saying,
before the company's downgrading, "No one ever got fired for buying IBM").

In this case a very strong brand name (or company name) is made the vehicle
for a range of products (for example, Mercedes-Benz or Black & Decker) or even a
range of subsidiary brands (such as Cadbury Dairy Milk, Cadbury Flake or Cadbury
Fingers in the United States).

Individual branding

Each brand has a separate name (such as Seven-Up or Nivea Sun

(Beiersdorf)), which may even compete against other brands from the same company
(for example, Persil, Omo, Surf and Lynx are all owned by Unilever).

Attitude branding

Attitude branding is the choice to represent a larger feeling, which is not

necessarily connected with the product or consumption of the product at all.
Marketing labeled as attitude branding include that of Nike, Starbucks, The Body
Shop, Safeway, and Apple Computer.

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"No-brand" branding

Recently a number of companies have successfully pursued "No-Brand"

strategies, examples include the Japanese company Muji, which means "No label".
Although there is a distinct Muji brand, Muji products are not branded. This no-brand
strategy means that little is spent on advertisement or classical marketing and Muji's
success is attributed to the word-of-mouth, a simple shopping experience and the anti-
brand movement. Another brand which is thought to follow a no-brand strategy is

Derived brands

In this case the supplier of a key component, used by a number of suppliers of

the end-product, may wish to guarantee its own position by promoting that component
as a brand in its own right. The most frequently quoted example is Intel, which
secures its position in the PC market with the slogan "Intel Inside".

Brand extension

The existing strong brand name can be used as a vehicle for new or modified
products; for example, many fashion and designer companies extended brands into
fragrances, shoes and accessories, home textile, home decor, luggage, (sun-) glasses,
furniture, hotels, etc.

There is a difference between brand extension and line extension. When Coca-
Cola launched "Diet Coke" and "Cherry Coke" they stayed within the originating
product category: non-alcoholic carbonated beverages. Procter & Gamble (P&G) did
likewise extending its strong lines (such as Fairy Soap) into neighboring products
(Fairy Liquid and Fairy Automatic) within the same category, dish washing
detergents.

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Multi-brands

Alternatively, in a market that is fragmented amongst a number of brands a

supplier can choose deliberately to launch totally new brands in apparent competition
with its own existing strong brand (and often with identical product characteristics);
simply to soak up some of the share of the market which will in any case go to minor
brands. In its most extreme manifestation, a supplier pioneering a new market which
it believes will be particularly attractive may choose immediately to launch a second
brand in competition with its first, in order to pre-empt others entering the market.

Individual brand names naturally allow greater flexibility by permitting a

variety of different products, of differing quality, to be sold without confusing the
consumer's perception of what business the company is in or diluting higher quality
products.

Cannibalization is a particular problem of a "multibrand" approach, in which

the new brand takes business away from an established one which the organization
also owns. This may be acceptable (indeed to be expected) if there is a net gain
overall. Alternatively, it may be the price the organization is willing to pay for
shifting its position in the market; the new product being one stage in this process.

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Own brands and generics

With the emergence of strong retailers the "own brand”, a retailer's own
branded product (or service), also emerged as a major factor in the marketplace.
Where the retailer has a particularly strong identity (such as Marks & Spencer in the
UK clothing sector) this "own brand" may be able to compete against even the
strongest brand leaders, and may outperform those products that are not otherwise
strongly branded.

Concerns were raised that such "own brands" might displace all other brands
(as they have done in Marks & Spencer outlets), but the evidence is that — at least in
supermarkets and department stores — consumers generally expect to see on display
something over 50 percent (and preferably over 60 percent) of brands other than those
of the retailer. Indeed, even the strongest own brands in the UK rarely achieve better
than third place in the overall market.

This means that strong independent brands (such as Kellogg's and Heinz),
which have maintained their marketing investments, are likely to continue their strong
performance. More than 50 per cent of UK FMCG brand leaders have held their
position for more than two decades, although it is arguable that those which have
switched their budgets to "buy space" in the retailers may be more exposed.

The strength of the retailers has, perhaps, been seen more in the pressure they
have been able to exert on the owners of even the strongest brands (and in particular
on the owners of the weaker third and fourth brands). Relationship marketing has
been applied most often to meet the wishes of such large customers (and indeed has
been demanded by them as recognition of their buying power). Some of the more
active marketers have now also switched to 'category marketing' - in which they take
into account all the needs of a retailer in a product category rather than more narrowly
focusing on their own brand.

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 At the same time, probably as an outgrowth of consumerism, "generic" (that
is, effectively unbranded) goods have also emerged. These made a positive virtue of
saving the cost of almost all marketing activities; emphasizing the lack of advertising
and, especially, the plain packaging (which was, however, often simply a vehicle for a
different kind of image). It would appear that the penetration of such generic products
peaked in the early 1980s, and most consumers still appear to be looking for the
qualities that the conventional brand provides.

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Objectives of the Study:

 To know the Customer’s perception towards Hero Honda Bikes

 To know the customer’s brand preference towards Hero Honda Bikes
 To study the Brand Equity of Hero Honda Bikes
 To know the how long customers prefer the Brand of Hero Honda Bikes
 To estimate the market share and examine the brand loyalty of HERO HONDA

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RESEARCH METHODOLOGY:
To study the objectives in detail the following research methodology is
adopted.
DATA COLLECTION:
The data for project is collected from using sources of both Primary Data and
Secondary Data.

PRIMARY DATA:
Personal interview method is used to collect primary data. The personal
interviews are done for obtaining primary data from the customers with a set of
structured questionnaire.

Questionnaire to customers which are distributed to the customers of tri cities

is done in order to know their opinions regarding Hero Honda Bikes.

SECONDARY DATA:
Secondary data is collected from internet sources, organizational manual, and
organizational website.

DATA ANALYSIS:
The data collected through questionnaire was tabulated and analyzed by
percentage, and corresponding graphs were made.

SAMPLING METHOD:
Sampling is the process of selecting an observation from the population and
knowing the characteristics of entire population

SAMPLING SIZE:
The selected sample size is 100.

GEOGRAHICAL AREA COVERED:

The tri-cities of Warangal District, i.e. Warangal, Hanamkonda, Kazipet.

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Limitations:

1) Recommendations of the study are only personally opinion. Hence

judgment may not be considered as ultimate standard solutions.

2) Information is collected from ultimate customers of Hero Honda Bikes by

serving a well framed questionnaire but shortage of time only 100 owners of
different sub brands of Hero Honda Bikes could be questioned.

3) Due to time constraint a comprehensive and meticulous study were not

possible.

4) Though owners of Hero Honda Bikes have catered through the globe due to
the investigation limited time and resources only the Warangal city has been
chosen as the area of the study.

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ABOUT THE COMPANY

Hero Honda has a reputation of being the most fuel-efficient and the
largest selling Indian motorcycle. Its commitment of providing the
customer with excellence is self-evident. A rich background of producing
high value products at a reasonable price led the world's largest
manufacturer of motorcycles to collaborate with the world's largest
bicycle manufacturer.

It was this affinity in working cultures of Honda Motor Company of

Japan and the Hero Group that resulted in the setting up of Hero Honda
Motors Ltd. A relationship so harmonious that Hero Honda has managed
to achieve indigenisation of over 95 percent, a Honda record worldwide.

Tactical promotions and excellent marketing helped Hero Honda

establish itself as an intelligent purchase. Its unique features like fuel
conservation, safety riding courses and mobile workshops helped the
group reach in the interiors of the country.

Finance services helped facilitate purchase, as did an efficient dealer

network across the country.

Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned

its attention overseas, and exports have been steadily on the rise.

Over the years, the Company has received its share of accolades,
including the National Productivity Council's Award ( 1990-91), and the
Economic Times - Harvard Business School Association of India Award,

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against 200 contenders.

VISION OF THE COMPANY

The Legend of Hero Honda

What started out as a Joint Venture between Hero Group, the world’s
largest bicycle manufacturers and the Honda Motor Company of Japan,
has today become the World’s single largest two wheeler Company.
Coming into existence on January 19, 1984, Hero Motors Limited gave
India nothing less than a revolution on two-wheels, made even more
famous by the ‘Fill it – Shut it – Forget it ‘ campaign. Driven by the trust
of over 5 million customers, the Hero Honda product range today
commands a market share of 48% making it a veritable giant in the
industry. Add to that technological excellence, an expensive dealer
network, and reliable after sales service, and you have one of the most
customer-friendly companies.

This is proved by the company’s sales over the years:

1985.86 43,000 units

1989.90 96,200 units
1998.99 5,30,600 units
1999-00 7,61,210 units
2000-01 10,29,555 units
2001.2 14,25,195 units
2002.3 17,78.392 units

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Customer satisfaction, a high quality product, the strength of Honda
technology and the Hero group’s dynamism have developed HTML scale
new frontiers and exceed limits.

In the words of Mr. Brijmohan Lal Munjal, the Chairman and Managing
Director, “We will continue to make every effort required for the
development of the motorcycle industry, through new product
development, technological innovation, investment in equipment and
facilities and through efficient management”.

1.5 HISTORICAL REPRESENTATION

The following are the historical facts of the company :

1984
 Company incorporated.
 Technical collaboration signed.
 Foundation stone lay.
 1983 - shareholders agreements signed.
1985
 First motorcycle (Model CD 100) produced.
1987
 Engine plant started.
 1,00,000th Motorcycle produced.

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1989
 Sleek model introduced.
1991
 5,00,000th motorcycle produced.
 CD-SS model introduced.
 Economic times – Harward business school award for excellent
Governance to Hero Honda Motors Ltd.
1993
 Hero group sponsors Hero cup five nations cricket
tournament

1994
 Splendor model introduced.

1995
 National Award for outstanding contribution to the
development of Indian small scale industry (NSIC Award
presented by President of India)
 The analyst award 1995 presented to Hero Honda Motors
Ltd. on being ranked 9th amongst the most investor rewarding
companies in India.

1996
 1000 motorcycle per day production started.

1997
 15,00,000th motorcycle produced.
 Street model introduced.
 Hero sponsored 6th women world cup cricket tournament.

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1998
 20,00,000th motorcycle produced.
 1st Hero Honda Master golf championship held at Delhi.

1999
 30,00,000th motorcycle produced.
 CBZ model introduced.
 7th World Cup Cricket tournament sponsored at England.
 Most admired business Baron CEO award conferred upon
the Chairman Brij Mohan Lal Munjal.

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2001
 Passion and Joy motorcycle launched.
 One million motorcycles produced in one single year.
 50,00,000th bike produced.
 Winner of the review-2000-Asia’s leading companies’
award 2000.
 National productivity award for the best performance in
automobile and tractors.
 Sir Jahangir Ghandy medal for industrial peace awarded
to Brij Mohal Lal by XLRI Jamshedpur.

2002
 Declared “company of the year” by economic times
business award.
 Chairman Brij Mohan Lal awarded the “entrepreneur of
the year” award by Business standard.
 Ambition launched.

2003
 Declared “company of the year” by economic times
business award for the second time.
 Karizma the sports segment bike launched.
This all says about the golden past of the company and the company is
going on to the path of success.

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1.6 INDUSTRY SCENARIO

In the present scenario of automobile industry the major companies are: -

Manufacturers Products % of market

share

75% market share

HERO HONDA Motorbikes
Scooter+Motorbikes+ Scooterate 25% market share
BAJAJ AUTO
Scooter+Motorbike+Scootrate 30% market share
LML
Motorbikes+Scootrate 15% market share
TVS
Motorbikes 15% market share
YAMAHA
Motorbikes 10% market share
ENFIELD

According to the recent results company (Hero Honda) registered a sales

increased by 24.5% over the past years. Same month TVS also registered
increase of 45% while the other companies are not enjoying quiet good
increase in sales. While the whole industry registered an increase of about
17% only. So in present scenario the Hero Honda comes as the leader of
whole automobile segment while there is immense competition in
industry to get the highest market share.

BRAND AMBASSADOR

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The company signed the Indian skipper of cricket team Saurav Ganguly,
Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as
its brand ambassadors joining the add campaign together to promote
“Ambition”. All of these celebrities are the member of Indian cricket
team and very much popular in younger generation. In the last year with
the launch of its new premium bike Karizama Hero Honda signed its
new brand ambassador who is a cine star and is also very popular. He is
Hritik Roshan.

Service Your Bike

Hero Honda has always taken a lead in terms of defining service

standards in two wheeler industry with an aim to provide "Total
Customer Satisfaction" for their valuable customers across the country
and also internationally. We are constantly endeavoring to improve the
quality of our service facilities at our Dealerships. The first and foremost
step to achieve this was creating Automated Workshops at our
Authorized Dealerships and Service Centers across the country.

Automated Workshops

Hero Honda has the largest chain of Automated Workshops providing

service to their valuable customers by using latest service technology.
Automated Workshops have standard layout, hydro electric motor cycle
lifts, dust free engine rooms and use pneumatic tools and equipment to
ensure quality repair in customers motorcycle. The workshop

Page 29 of 52
environment and usage of pneumatic tools increases mechanics efficiency
and their motivation to provide quality service. The layouts have been
standardized to ensure that there is a transparency of service. The
customers can view their motorcycle repair while sitting comfortably
watching TV or relaxing in the customer lounge. Workshop Automation
has become a mandatory service standard for all Hero Honda Dealers and
Service Centers.

Training

The regular Technical Training Programmes for Dealers Workshop staff

to keep them updated and refreshed about the latest price technology,
product technical details as well as service and repair procedures to
handle customers motorcycle with utmost care as well as to provide them
the service quality of highest order is a focus area at Hero Honda. Hero
Honda has six (06) training centers across the country. There are 05 zonal
training centers of Pune, Bangalore, Calcutta, Chennai and Delhi to take
care of technical training requirements of dealers in each zone as well as
local technicians. There is a National Training Center at Dharuhera to
take care of all advanced level technical programmes for our dealers staff
and our in house service engineers. Hero Honda keeps an organizing
Dealers Mechanics Contest at Zonal Level and National Level to develop
competitive spirit among mechanics as well as in the process to update
their skills and product knowledge.

Customer Service

Page 30 of 52
Hero Honda keeps on taking always-new initiatives to maintain its
leadership on service as well as enhance customer satisfaction level on an
ongoing basis. Some of the new initiatives related to customer service are
as follows: -

· Service Advisors at Dealerships

· Service Plus Scheme for customers
· Pre Paid Reply Cards
· Automated Mobile Service Workshops
· Mega Millennium Camps
· On the Job Training Programmes
· Local Mechanics Training

There are many more initiatives, which we keep on taking along with our
dealers to keep our customers always in our mind on top priority.

Safety- "S4" Concept (Sales, Service, Spare Parts & Safety)

Hero Honda is also launching very soon a novel concept and a very major
initiative - Safety at their S4 Dealerships (Sales, Spare Parts & Safety)

Safety Education to motorcycle customers shall be an integral part of

Hero Honda's motorcycle delivery process at the showroom.
Customers shall be educated on Safe Riding techniques through
various audio visual aids. Safety Instructors shall be imparting riding
skills as well as education to the customers. Dealers shall also conduct
a major programme in their respective towns with the association of
local traffic police on a regular basis on safety education and correct
riding techniques.

Page 31 of 52
Page 32 of 52
 CBZ
The Hero Honda CBZ (pronounced
CeeBeeZee) is the latest offering from
Hero Honda for the Indian market.
With a 156cc engine, the company
claims that the bike has a top speed of
100kph within 5.6 seconds. Though the bike has the largest displacement
engine, its top speed doesn’t match up to many of its competitors. In all
other respects, it is a bit too early to decide whether the CBZ will sell in
the same numbers as the Splendor. Though the initial market response
has been good, only time will be the final arbiter.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 156cc
Tachometer : Yes
Max Power : 12.8b hp@8000 rpm
Wheel base: 1,330mm
Ground Clearance: 160mm
Ignition : Electronic CDI
Dry Weight: 140kg
Fuel tank Capacity: 12.5itres
Battery: 12V
Max Torque: 1.26kgm@6500rpm
Bore x stroke: 63.5mmx49.5mm
Max Speed: 120kph
Front Tyre size : 3.25x19"
Rear Tyre size: 3.50x19"

Splendor

Page 33 of 52
A combination of style and economy makes the Splendor is a bike worth
investing in. The latest from the Hero Honda factory offers both
performance and looks. It has good looks, excellent handling
characteristics and a smooth drive over any type of terrain, thanks to the
changes in the suspension at front and near as well as the new frame
design. All these features contribute to the Splendor being one of the best
selling four stroke-two-wheelers in India. It also meets all the current
pollution standards. A healthier beat, springy ride and overall low
maintenance has aided in the record-breaking sales of this bike.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.2b hp@8500 rpm
Wheel base : 1,230mm
Ground Clearance : 159mm
Ignition : Electronic
Dry Weight : 100.3kg
Fuel tank Capacity : 10.5itres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 90kph
Front Tyre size : 2.75x18"
Rear Tyre size : 2.75x18"

St
re
et

Page 34 of 52
 10
0
The Street 100 is Hero Motor's latest two-wheeler on offer in the step-
through category. The Hero Honda Street 100 is equipped with unique
features like city-clutch, which is designed specially for city driving. It
has rotary gears, which allow the rider to flip directly from the fourth gear
to neutral once the bike has come to a halt, a must for the present ‘stop-
and-go’ traffic. A self-starter button comes as an option. The Street can
be purchased with a variety of seat layouts and has options like a water
pump, spray can, larger luggage tray, etc. Its major competitor is the
much cheaper K4 from Kinetic. Major plus points that justify the higher
price are the centrifugal clutch and the rotary gears. However, the liberal
use of plastics negates much of the ‘feel good’ factor and has hindered
sales to a large extent.
Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : N/A
Max Power : N/A
Wheel base : 1,205mm
Ground Clearance : 133mm
Ignition : Electronic
Dry Weight : 101kg
Fuel tank Capacity : 11litres
Battery : 12V
F/R suspension : Telescopic
R/R suspension : Swing arm and Hydraulic dampers
Max Speed : N/A
Front Tyre size : 2.25x17"
Rear Tyre size : 2.50x17"

Page 35 of 52
 CD
100SS
The CD100SS is designed for those who live life in
the fast lane, rough and tough, for those who would love to take a bike on
the stumbling village roads. It shares almost all components with the
CD100, except for the additional reinforcement. With larger, reinforced
shock absorbers, wider tyres, heavier body weight and engine guard, the
Hero Honda CD 100 SS weights slightly more, resulting in some cut
down in the fuel economy it offers. Minor problems of the CD100 have
been rectified in the SS model. If you wish to ride into the hinterland, this
is the bike for you.

Technical Specifications
Engine : Four-stroke/petrol
Transmission : Four-speed
Engine Displacement : 97.2cc
Tachometer : No
Max Power : 7.0bhp@8000rpm
Wheel base : 1,220mm
Ground Clearance : 165mm
Ignition : Electronic
Dry Weight : 103kg
Fuel tank Capacity : 10.1litres
Battery : 12V
F/R suspension : Tel Hydraulic fork
R/R suspension : Swing arm and Hydraulic damper
Max Speed : 85kph
Front Tyre size : 2.57x18"
Rear Tyre size : 3.00x18"

Page 36 of 52
Features :

Engine 4-stroke, single cyclinder, air-cooled

Displacement 97.2cc
Clutch type Manual
Clutch Primary -
Clutch Secondary Multi-plate wet
Transmission 4-speed constant mesh
Final Drive Roller chain
Ignition Electronic
Starting Kick starter
Frame T-Bone type
Suspension (Front) Telescopic hydraulic fork
Suspension (Rear) Swing-arm with hydraulic dampers
Dimensions (LxWxH) 1885x770x1060mm
Wheel Base 1210mm
Ground Clearance 135 mm
Dry Weight 95 kg
Tyres:Front/Rear 2.50"x18"/2.75"x18"
Max.Power 7.0 PS @ 8000 rpm
Max.Speed 85 Kmph
Fuel Tank Capacity 10.1 ltr(1.3 ltr reserve)

Page 37 of 52
 A
m
bit
io
n
13
5

Features :

Engine 4 stroke
Displacement 133 cc
Maximum Power 11 BHP / 11.15 PS @ 8000 rpm
Maximum Speed 100 KMPH
Gears 5
Frame Tubular single cradle, diamond type
Tyres: (Front) 2.75 X 18
Tyres: (Rear) 3.00 X 18
Headlight Trapezoidal 35 / 35 W
Fuel Efficiency 55 KMPL

Page 38 of 52
 KARIZAMA

If you look at the 223c mill of the Karizma, you can make out the
familiar streak that runs through the engines on the CBZ and the
Ambition. No prizes on this count as to the reason but the 223cc
Karizma engine represents - for the moment - the maximum capacity
this modular design theme can be taken to. The crankcase is of virtually
the same size though the covers do have some detail differences and the
engine mounts are the same as in the other two bikes and completing the
picture are the scaled-up barrel (with an additional fin) and head.

The single overhead cam motor features slightly undersquare cylinder

dimensions with a 65.5mm bore and a 66.2mm stroke to give a 223cc
swept volume. Hero Honda has designed in the latest convex-type
combustion chamber (compression ratio being 9.0 : 1) for silent running
and good power delivery while also giving it the latest Keihin VE 3EA
constant vacuum type carburettor which also packs in the CCVI switch.
The CCVI term stands for carb-controlled variable ignition timing
which as it suggests actuates - via throttle position - one of two ignition
maps, for low and high speed operation. This was one area which
disappointed appreciably in the CBZ wherein the engine sounded and
felt harsh as one went past the middle range but here this detail has
eliminated such a glitch completely. Just for the record, the 223cc
engine gets the latest version of Honda's AMI (advanced microprocessor
ignition) system which incorporates a three tier, multi-stage digital
ignition system.

The all aluminium alloy engine (with pressed-in steel liner) features an

Page 39 of 52
automatic cam chain tensioner, an air cut off valve (to prevent
afterburning in the exhaust muffler) and like on the CBZ and Ambition,
an air injection valve to keep tail pipe emissions in check. With all this
and the extra cubic capacity, the Karizma engine develops 16.76bhp at
7000rpm and 18.35Nm of torque at 6000rpm. This is about 2bhp and
5Nm more than what the Pulsar 180 makes but the reasoning is that the
engine had to be stressfree and this fact holds true when out on the
roads.

Transmission is via a five-speed gearbox which has had its final drive
ratios revised from those in the CBZ. A stronger multi-plate clutch is
used to take care of the enhanced power and torque figures. This time
round Hero Honda has not faulted and equipped the engine withan
electric starter even though the kick starter to be actuated requires the
front right footrest to be folded out of the way.

ENGINE:
TRANSMISSION:

Page 40 of 52
 DATA ANALYSIS

Table 1) Occupation of respondents

S.No. Occupation No. of Respondent % of Respondent

1 Students 56 56
2 Employees 18 18
3 Business men 26 26
Total No. of Respondent 100 100

Occupation
60 56
50
Students
Usage

40
30 26 Employees
18
20 Business men
10
0
Students Employees Business
men
Category

From the above table it is clear that most of the students are choosing the L.G
bikes.

TABLE 2) Mode of Channels

Page 41 of 52
S.No Mode of Channel No. of Respondent % of Respondent
1 Electronic Media 48 48
2 Road Shows 02 02
3 Print Media 28 28
4 Friends 32 32
Total No. of Respondent 100 100

Advertisment

50
Electronic Media
Percentage

40
30 Road Shows
20 Print Media
10 Friends
0
ia

ia
s

s
ow
ed

nd
ed
M

Sh

ie
M

Fr
c

t
d
ni

in
oa
ro

Pr
R
t
ec
El

Category

From the above table it is interpreted that most of the respondents have awareness
about L.G Bikes through Electronic Media (48%).

Table 3) Brand Prefer Criteria

Page 42 of 52
S.No No.of Respondent % of Respondent
1 Brand Image 28 28
2 Quality Service 13 13
3 Economic Price 59 59
Total No.of Respondent 100 100

Brand
60
Percentage

50
40
30 Brand Image
20 QualityService
10 Economic Price
ce

ce

0
e
ag

vi

ri
P
er
Im

ic
S

om
nd

ty
li
ra

n
ua

co
B

Type

From the above table it is interpreted that most of the respondent to prefer
for Economic Price (59%) to choose HERO HONDA brand.

Table 4) Level of Performance

Page 43 of 52
S.No. Choosing Factor No. of Respondent % of Respondent
1 Yes 80 80
2 No 20 20
Total No.of Respondent 100 100

80
70
60
Percentage

Yes
50
40 No
30
20
10
0
Yes No
Performance

From the above table it is interpreted that Performance of Hero Honda Bikes,
have more satisfaction (80%)

Table 5) Purchase Influence Factors

S.No. Influence Factors No.of Respondent % of Respondent

1 Colleagues 05 05
2 Friends 69 69
3 Family Members 16 16

Page 44 of 52
4 Others 10 10
Total No. of Respondent 100 100

70
60
50
40
Colleagues
30
20 Friends
10 Family Mem
0 Others
m
s

s
e

rs
e
d
u

e
n
g

th
e
a

il y
ri
ll e

O
F

m
o

a
C

From the above table most influence factor is Friends (69%), to purchase L.G
Bikes.

Page 45 of 52
 Table 6) Opinion about Bike Features

S.No Opinion No. of Respondent % of Respondent

1 Yes 85 85
2 No 15 15
Total No. of Respondent 100 100

Existing Features

100

80
Yes
60
No
40

20

0
Yes No

From the above table it is interpreted that bike Features Yes (85%) is the
Highest.

Page 46 of 52
 Table 7) Service Quality

S.No Service No .of Respondent % of Respondnet

1 Knowledge 45 45
2 Help 29 29
3 Friendly 09 09
4 Attractive 17 17
Total No. of Respondent 100 100

45
40
35
30
25 Knowledge
20 Help
15 Friendly
10
Attractive
5
0
e lp dly
dg He en tive
ow
le
Fri ra c
Kn Att

From the above table it is interpreted that service of the bikes is knowledge is
highest.

Page 47 of 52
 Table 8) Opinion on Promotional Activities

S.No. Mode of Promotion No. of Respondent % of Respondent

1 Ad. Attractive 63 63
2 Attractive to Purchase 32 32
3 Window Display 05 05
Total No. of Respondent 100 100

70
60
50
40 Ad. Attractive
30 Attractive to Purchase
20 Window Display

10
0
Ad. Attractive Window
Attractive to Purchase Display

From the above table it is interpreted that Add. Attractive is the most
Promotional Activity to purchase the HERO HONDA bike.

Table 9) Opinion on Store Environment

Page 48 of 52
S.No Environment No. of Respondent % of Respondent
1 Accessible 67 67
2 Outlets 21 21
3 Pleasing 12 12
Total No. of Respondent 100 100

70
60
50
Accessible
40
Outlets
30
Pleasing
20
10
0
Accessible Outlets Pleasing

From the above table it is interpreted that HERO HONDA stores have easy to
accessible the bikes

Page 49 of 52
 Table 10) Opinion on styles of Brand

S. No. Variety’s Available No. of Respondent % of Respondent

1 Style 10 10
2 Feature 63 63
3 Fashionable 27 27
Total No. of Respondent 100 100

70
60
50 Style
40 Feature
30
20 Fashionable
10
0
e

re

e
yl

bl
tu
St

na
a
Fe

io
sh
Fa

From the above table it is interpreted that most of the sales depend on the bike
features.

Page 50 of 52
Conclusions:

1. Most of the respondents were aware by the friends (69%) and Family
members (16%) Colleagues (5%), Others (10%) also helped in providing
information to the respondents

2. Advertisement in Electronic media (48%) were much affective and Print

Media (28%) was also a major advertising media.

3. Many factors like family members, advertising was responsible for influencing
the customers to buy Hero Honda Bikes

4. Purchasing of Hero Honda Bikes are highly Students for their usage of
features.

5. Factors effecting on buying decision of a customers are Brand name, Price,

Design, warranty, services are helping more in purchasing of the Hero Honda
Bikes.

6. Most of the consumers are not aware of the new models after releasing.

7. Middle class and high income customers are buying the Hero Honda Bikes.

8. Store environment of Hero Honda Bikes is easily accessible to buy.

9. Promotional activities are attractive.

10. Providing the styles of brand are distinctive features

Page 51 of 52
Suggestions:

In the light of the analysis and findings the researcher would like to place
before the company the following suggestions and recommendations.

1. Since most of the samples are not aware of HERO HONDA New Models, the
company should take measures to develop the awareness of the New Models.

2. Most of the sales of bikes depend upon the Sales people’s suggestion.

3. HERO HONDA Company Should may provide the LIVE DEMO for the
bikes. It will create the more sales.

4. In the place of dummy bikes firm may kept the original bikes. To give the
demonstration. And customer can easily identify the features of the Bike.

5. Increase the supply chain of distribution of the bikes.

6. HERO HONDA Company may open the shop with all the models are
available in the store. It may have to create the awareness of the bikes we are
offering to the customers.

Page 52 of 52