.

INDEX

TOPIC PAGE NO

CHAPTER1
INDUSTRYPROFILE
COMPANYPROFILE
INTRODUCTION
TOCONSUMER
BEHAVIOUR

CHAPTER2
OBJECTIVESOFTHESTUDY
NEED&SCOPEOFTHESTUDY
RESEARCHMETHODOLOGY
DATAANALYSIS
DATASOURCE

CHAPTER3
DATAANALYSIS &
INTERPRETATION

CHAPTER4
FINDINGS
SUGGESTIONS

ANNEXURE

1
BIBLIOGRAPHY

2
Chapter-1
 INDUSTRYPROFILE

AutomobileindustryinIndia

The automobile industry in India is the ninth largest in the world with an
annualproduction of over 2.3 million units in 2008 In 2009, India emerged as Asia's
fourthlargestexporterofautomobiles,behind Japan,South KoreaandThailand.

Following economic liberalization in India in 1991, the Indian automotive industry

hasdemonstrated sustained growth as a result of increased competitiveness and
relaxedrestrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti
SuzukiandMahindraandMahindra, expandedtheir domesticand internationaloperations.
India's robust economic growth led to the further expansion of its domestic
automobilemarket which attracted significant India-specific investment by multinational
automobilemanufacturers. In February 2009, monthly sales of passenger cars in India
exceeded100,000 units.

bryonic automotive industry emerged in India in the 1940s. Following the

independence,in 1947, the Government of India and the private sector launched efforts
to create anautomotivecomponent manufacturingindustrytosupplyto
theautomobileindustry.
However, the growth was relatively slow in the 1950s and 1960s due to
nationalizationand the license raj which hampered the Indian private sector. After 1970,
the automotiveindustry started to grow, but the growth was mainly driven by tractors,
commercialvehicles and scooters. Cars were still a major luxury. Japanese manufacturers
entered theIndian market ultimately leading to the establishment of Maruti Udyog. A
number offoreignfirms initiated joint ventureswithIndian companies.
In the 1980s, a number of Japanese manufacturers launched joint-ventures for
buildingmotorcycles and light commercial-vehicles. It was at this time that the Indian
governmentchose Suzuki for its joint-venture to manufacture small cars. Following the
economicliberalization in 1991 and the gradual weakeningof the license raj, anumber of
Indianandmulti-
nationalcarcompanieslaunchedoperations.Sincethen,automotivecomponentand
automobile manufacturing growth has accelerated to meet domestic and exportdemands.

HISTORYOFTHE TWOWHEELERS:

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by

aninternal –combustion engine (or, less often by an electric engine). The automobile
wasthereplytothe19th–centuryreamsofself-propellingthehorse-drawnbikeriage.Similarly,
the invention of the motorcycle created the self –propelling bicycle.The firstcommercial
design was three-wheeler built by Edward Butler in Great Britain in 1884.This employed
a horizontal single-cylinder gasoline engine mounted between two steerable front wheels
and connected by a drive chain to the rear wheel.The 1900s saw theconversion of many
bicycles or pedal cycles by adding small, centrally mounted sparkignition engine
engines.There was then felt the need for reliable constructions.This ledto road trial tests
and competition between manufacturers.Tourist Trophy (TT) raceswere held on the Isle
of main in 1907 as reliability or endurance races.Such were theproving ground for many
new ideas from early two-stroke-cycle designs to
superchargedmultivalentenginesmounted onaerodynamic,
bikebonfiberreinforcedbodywork.

INVENTIONOFTWOWHEELERS:

The invention of two wheelers is a much-debated issue.“Who invented the

firstmotorcycle?”May seem like a simple question,“safety”, bicycle, i.e., bicycle with
frontand rear wheels of the same size, with a pedal crank mechanism to drive the rear
wheel.Thosebicyclesinturndescribedfromhigh-wheelbicycles.Thehigh–wheelersdescended
from an early type of pushbike, without pedals, propelled by the rider‟s feetpushing
against the ground.These appeared around 1800, used ironbanded wagonwheels, and were
called “bone-crushers”, both for their jarring ride, and their tendency totoss their
riders.Gottiieb Daimler (who credited with the building the first motorcycle
in1885,onewheelinthefrontandoneintheback,althoughithadasmallerspring-loaded
outriggerwheeloneachside.Itwasconstructedmostlyofwood,thewheelswereoftheiron-
bandedwooden-spookedwagon-typeanditdefinitelyhada“bone-crusher”chassis!

FURTHERDEVELOPMENTS:

Mostofthedevelopmentsduringtheearlyphaseconcentratedonthreeandfour-wheeled
design since it was complex enough to get the machines running with out
havingtoworryaboutthemfallingover.Thenextnotabletwo-wheelerthoughwastheHildebrand
& Wolf Mueller, patented in Munich in 1894.In 1895, the French firm ofDeDion-
buttonbuiltandenginethatwastomakethemassproductionandcommonuseof motorcycle
possible.The firstmotorcyclewithelectric startanda fully modemelectrical system; the
Hence special from the Indian Motorcycle Company astounded theindustry in 1931.
Before World War 1, IMC was the largest motorcycle manufacturer intheworld
producingover20000 bikes peryear.

INCREASINGPOPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the
Indianmotorcycle company introduced the model H racer, and placed it on sale.During
WorldWar 1, all branches of the armed forces in Europe used motorcycles principally
fordispatching.After the war, it enjoyed a sport vogue until the Great Depression began
inmotorcycles lasted into the late 20thcentury; weight the vehicle being used for high-
speedtouring and sport competitions.The more sophisticated of a 125cc model.Since then,
anincreasingnumberof powerful bikes haveblazedthe roads.

HISTORICALINDUSTRYDEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in

theWorld.It stands next only to Japan and China in terms of the number of V produced
anddomestic sales respectively.This destination was achieved due to variety of reason
likerestrictivepolicyfollowedbythegovernmentofIndiatowardsthepassengerbikeindustry,
rising demand for personal transport, inefficiency in the public transportationsystem
etc.The Indian two-wheelers industry made a small beginning in the early 50swhen
Automobile products of India (API) started manufacturing scooters in the country.Until
1958, APIand Enfield werethesoleproducers.
 The two –wheelers market was opened were opened to foreign competition in
themid-80s. And the then market leaders-Escorts and Enfield – were caught unaware by
theonslaughtofthe100ccbikesofthefourIndo-
Japanesejointventures.Withtheavailabilityoffuel-
efficiencylowpowerbikes,demandswelled,resultinginHeroHonda
–then theonlyproducerof four strokebikes (100cccategory),gainingatop slot.

The first Japanese motorcycles were introduced in the early eighties.TVS

SuzukiandHeroHondabroughtinthefirsttwo-strokeandfour-
strokeenginemotorcyclesrespectively.These two players initially started with assembly of
CKD Kits, and later onprogressedto indigenousmanufacturing.

Theindustryhadasmoothrideinthe50s,60sand70swhengovernmentprohibited new
entries and strictly controlled capacity expansion.The industry saw asudden growth in the
80s.The industry witnessed a steady of 14% leading to a peakvolumeof 1.9 mn vehicles in
1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This
resultedin a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of
0.4mnvehicles.Barring Hero Honda, all the major producers suffered from recession in
FY93andFY94. Hero Hondashowed amarginal declinein1992.

The reason for recession in the sector were the incessant rise in fuel prices,
highinput costs and reduced purchasing power due to significant like increased production
in1992, due to new entrants coupled with recession in the industry resulted in
companieseitherreportinglosses orafall in profits.

CONCLUSION:

The two-wheelers market has had a perceptible shift from a buyers market to
asellers market with a variety of choice, players will have compete on various fronts
viz.pricing,technologyproductdesign,productivityaftersaleservice,marketinganddistributio
n.In the short term, market shares of individual manufacturers are going to besensitive to
capacity, product acceptance, pricing and competitive pressures from othermanufacturers.
 As incomes grow and people grow and people feel the need to own a private
meansoftransport,salesoftwo-
wheelerswillrise.Penetrationisexpectedtoincreasetoapproximatelyto morethan
25%by2005.

The motorcycle segment will continue to lead the demand for two-wheelers in
thecoming years.Motorcycle sale is expected to increase by 20% yoy as compared to
1%growthin thescootermarket and 3%bymopedsales respectivelyforthe next twoyears.

The four-stroke scooters will add new dimension to the two-wheeler segment in
thecomingfuture.

The Asian continent is that largest user of the two-wheelers in the world.This is due
topoor road infrastructure and low per capita income, restrictive policy on bike
industry.This is due to oligopoly between top five players in the segment, compared to
thirstymanufacturersin the bikeindustry.

Hero Honda motors LTd., is one of the leading companies in the two-
wheelerindustry.At present it is the market leader in the motorcycle segment with
around 47%the market share during FY 2000 –01.During the year, company posted a
41.15% yoyrisein turnover to Rs.31,686.5mn in motorcycleswhich
drivenbya35.17%yoyriseinMotorcycle sales volumes. The company has emerged as
one of the most successfulplayers, much ahead of its competitions an account of its
superior and reliable productquality complemented with excellent marketing
techniques.The company has beenconsistently addressing the growing demand for
motorcycles and has been cumulativecustomer base of over 4 million customers, which
is expected to reach 5min mark withruraland semi-urban segment beingthe new class of
consumers.
 COMPANYPROFILE

HeroMotoCorpLtd.(FormerlyHero HondaMotorsLtd.)isthe
world'slargestmanufactureroftwo-wheelers, basedinIndia.
In 2001, the company achieved the coveted position of being the largest two-
wheelermanufacturing company in India and also, the 'World No.1' two-wheeler
company interms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues
to maintainthisposition till date.

Today,everysecondmotorcycle sold inthe countryisa Hero

Hondabike.Every30seconds,someoneinIndiabuysHeroHonda'stop-
sellingmotorcycle–Splendor.

Vision
The Hero Honda story began with a simple vision – the vision of a mobile and
anempowered India, powered by Hero Honda. This vision was driven by Hero
Honda‟scommitmenttocustomer,
qualityandexcellence,andwhiledoingso,maintainingthehighest standards of ethics and
societal responsibilities. Hero Honda believes that thefastest wayto turn that dream
into arealityis byremainingfocused on thatvision.

Strategy
Hero Honda‟s key strategy has been driven by innovation in every sphere of activity –
building a robust product portfolio across categories, exploring new markets,
aggressivelyexpandingthe networkand continuingto investin brand buildingactivities.

Manufacturing
Hero Honda bikes are manufactured across three globally benchmarked
manufacturingfacilities. Two of these are based at Gurgaon and Dharuhera which are
located in the stateofHaryanainnorthernIndia.Thethirdand thelatest manufacturingplantis
basedat
Haridwar,inthehillstateofUttrakhand.

Technology
In the 1980‟s Hero Honda pioneered the introduction of fuel-efficient,
environmentfriendlyfour-strokemotorcyclesinthe country.Today,Hero
Hondacontinuesto betechnology pioneer. It became the first company to launch the
Fuel Injection (FI)technology in Indian motorcycles, with the launch of the
Glamour FI in June 2006.Products
Hero Honda's product range includes variety of motorcycles that have set the
industrystandards across all the market segments. The company also started
manufacturingscooter in 2006. Hero Honda offers large no. of products and caters to
wide variety ofrequirementsacross all thesegments.

Distribution
The company's growth in the two wheeler market in India is the result of an
intrinsicabilitytoincreasereachinnew
geographiesandgrowthmarkets.HeroHonda'sextensivesales and service network now
spans close to 4500 customer touch points. Thesecomprise a mix of authorized
dealerships, Service & Spare Parts outlets, and dealer-appointedoutlets across
thecountry.

Brand

Thecompany hasbeencontinuouslyinvestinginbrandbuildingutilizingnotonly thenew

product launch and new campaign launch opportunities but also through
innovativemarketinginitiativesrevolvingaround cricket,entertainmentandground-
levelactivation.

Hero Honda has been actively promoting various sports such as hockey, cricket and
golf.Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that
wasplayed in Delhi during Feb-March 2010. Hero Honda also partners the
CommonwealthGamesDelhi 2010.
2010-11Performance
Totalunitsalesof54,02,444two-wheelers, growthof17.44percent
Totalnet operatingincome ofRs. 19401.15Crores, growthof 22.32 percent
NetprofitaftertaxatRs.1927.90Crores
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70
pershareon facevalue of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per
centEPSof Rs. 96.54

2009-10Performance

Totalunitsalesof46,00,130two-wheelers, growthof23.6percent
Total net operating income of Rs. 15860.51 Crores, growth of28.1 per
centNetprofitafter taxat Rs.2231.83 Crores,growthof74.1per cent
Finaldividend of1500%orRs. 30per shareon facevalue ofeach
shareofRs.2EBIDTAmargin for the year 17.4per cent
EPS ofRs. 111.77,growth of74.1 percent

HEROHONDA'SMISSION

Hero Honda‟s mission is to strive for synergy between technology, systems and
humanresources, to produce products and services that meet the quality, performance and
priceaspirationsofits customers.Atthesametimemaintain thehigheststandards
ofethicsandsocialresponsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps
theorganizationforgeauniqueandmutuallybeneficialrelationship withallits stakeholders.

HEROHONDA'SMANDATE

HeroHondaisaworldleaderbecauseofitsexcellentmanpower,provenmanagement,extensi
ve dealer network, efficient supply chain and world-class products with cuttingedge
technology from Honda Motor Company, Japan. The teamwork and commitmentare
manifested in the highest level of customer satisfaction, and this goes a long
waytowardsreinforcingits leadership status

BOARDOFDIRECTORS

No. NameoftheDirectors Designation

1 Mr.BrijmohanLallMunjal Chairman&Whole-time Director

2 Mr.PawanMunjal ManagingDirector &C.E.O.

3 Mr.ToshiakiNakagawa JointManagingDirector

4 Mr.SumihisaFukuda TechnicalDirector

5 Mr.Sunil Kant Munjal Non-ExecutiveDirector

6 Mr.SumanKantMunjal Non-ExecutiveDirector

7 Mr.TakashiNagai Non-ExecutiveDirector

8 Mr.YujiShiga Non-ExecutiveDirector

9 Mr.PradeepDinodia Non-executive &

IndependentDirector

10 Gen.(Retd.)V.P.Malik Non-executive &

IndependentDirector

11 Mr.AnaljitSingh Non-executive &

IndependentDirector

12 Dr.PritamSingh Non-executive &

IndependentDirector

13 Prof. Jagmohan Singh Raju Non-executive &

IndependentDirector

14. Mr.M.Damodaran Non-executive &

IndependentDirector

15. Mr.RaviNath Non-executive &

IndependentDirector

16. Dr.AnandC.Burman Non-executive &

IndependentDirector

BRIEFPROFILEOFDIRECTORS

MR.BRIJMOHAN LALLMUNJAL
 500,000thmotorcycleproduced

1992 RamanMunjalVidyaMandirinaugurated -ASchoolin thememoryof founder

ManagingDirector,Mr. Raman Kant Munjal

1994 Newmotorcyclemodel-"Splendor"introduced1,0
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company
00,000thmotorcycleproduced
andthe $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian
Industry(CII),
1997 Newmotorcyclemodel Society of Indian Automobile Manufacturers (SIAM) and was a Member
- "Street"introduced
of theBoard
HeroHonda's2nd of the Country'sGurgaoninaugurated
manufacturingplantat Central Bank (Reserve Bank of India). In recognition of
hiscontribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by
1998 2,000,000thmotorcycleproduced
theUnionGovernment.
1999 Newmotorcyclemodel - "CBZ"introduced
Mr.BrijmohanLallMunjal is currentlyon theboard ofthefollowingcompanies:
Environment Management System of Dharuhera Plant certified with ISO-14001 by
DNVHolland
No. NameofCompany Natureof Office
RamanMunjalMemorialHospitalinaugurated-A
1 HeroHondaMotorsLimited ChairmanandWhole-timeDirector
HospitalinthememoryoffounderManagingDirector, Mr.Raman Kant Munjal
2 HeroHondaFinlease Limited ChairmanandDirector
2000 4,000,000thmotorcycleproduced
3 MunjalShowaLimited ChairmanandDirector
EnvironmentManagementSystemofGurgaonPlantcertifiedISO-
14001byDNVHollandSplendordeclared'World
4 EasyBillLimited No.1'-largest sellingsingle two-
Director
wheelermodel
5 RockmanIndustriesLimited Director
"HeroHondaPassportProgramme"-CRMProgrammelaunched
6 ShivamAutotech Limited Director
2001 Newmotorcyclemodel-"Passion"introducedOn
emillion production in one singleyearNew
motorcycle model - "Joy"
introduced5,000,000thmotorcycleproduced

2002 New motorcycle model - "Dawn"

introducedNewmotorcyclemodel-"Ambition"int
roduced
KEYMILESTONESOFHEROHONDA
AppointedVirenderSehwag,MohammadKaif, YuvrajSingh,Harbhajan
Year Event
SinghandZaheerKhanasBrandAmbassadors
2003 Becomesthefirst
1983Indian Companytocrossthe
Joint Collaboration cumulative7millionsalesmark
Agreement with Honda Motor Co. Ltd. Japan
SplendorhasemergedastheWorld'slargestsellingmodelforthethirdcalendaryearinarow(200
signedShareholdersAgreement signed
0,2001, 2002)
1984 HeroHondaMotorsLtd.Incorporated
New motorcycle model - "CD Dawn"
1985 Firstmotorcycle "CD100"rolledout
introducedNew motorcycle model - "Splendor +"
1987 100,000thmotorcycleproduced
introducedNewmotorcyclemodel -
1989 Newmotorcyclemodel - "Sleek"introduced
"PassionPlus"introduced
1991 Newmotorcyclemodel- "CD100 SS"introduced 17
2009 Hunk'(LimitedEdition)launched
Splendor completed 11 million production
landmarkNew motorcycle model 'Karizma - ZMR'
2010 launchedSilverjubileecelebrations

NewmodelSplendorPro launched
2011
Launchofnew SuperSplendorandNew Hunk

NewlicensingarrangementsignedbetweenHeroandHonda
Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme,
KarizmaCrossesthe landmarkfigureof5millioncumulative sales inasingleyear

PROMINENTAWARDSTOTHECOMPANY
Year Awards&Recognitions

Two-wheelerManufacturerofthe YearawardbyBike Indiamagazine.

2011
Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels
CarandBikeAwards.
- CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a
newcorporateentity" byCNBC AwaazConsumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC
AwaazConsumerAwards
-ColloquyLoyaltyAwards "Innovation inLoyaltyMarketing International2011"
forHeroGoodLife
-"Best Activity Generating Short or Long-Term Brand Loyalty" by the
PromotionMarketingAward ofAsiaOrder ofMerit forHero GoodLife
2010 - Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity
"MostTrustedBrand"2011 survey

Company of the Year awarded by Economic Times Awards for Corporate

Excellence2008-09.

CNBCTV18Overdrive Awards2010 'Hallof Fame'toSplendor

NDTVProfitCar &Bike Awards2010 -

 Two-wheelerManufactureroftheYear
 CnBViewers'ChoiceTwo-wheelerof theYear(KarizmaZMR)

19
 BikeMakeroftheYearbyET-ZigWheelsCar &Bikeofthe Year Awards2009

2009 'Two-wheelerManufactureroftheYear'byNDTVProfit Car&Bike

Awards2009andPassion Pro adjudged as CNBViewers'Choicetwo-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun
&Bradstreet-RoltaCorporateAwards

WonGoldintheReader's DigestTrustedBrand 2009 inthe'Motorcycles'category

NDTVProfitBusinessLeadership Awards2009-two-wheelercategory

2008 NDTVProfitBusinessLeadership Award 2008 -HeroHondaWins theCoveted

"NDTVProfitBusinessLeadershipAward2008"
TopGearDesign Awards2008-HunkBikeoftheYearAward
NDTVProfitCarIndia&BikeIndiaAwards -NDTV“Viewers‟ChoiceAward”to
Hunkin Bikecategory
IndiaTimesMindscapeandSavileRow (AForbesGroupVenture)LoyaltyAwards
-“CustomerandBrand LoyaltyAward”inAutomobile(two-wheeler)sector
AsianRetailCongressAwardforRetailExcellence(StrategiesandSolutionsof
business innovation and transformation) - Best Customer Loyalty Program in
Automobilecategory

NDTVProfitCarIndia&BikeIndiaAwards-BikeManufactureroftheyear

OverdriveMagazine- BikeManufactureroftheyear
TNSVoiceoftheCustomerAwards:
 No.1executivemotorcycleSplendorNXG
 No.1standardmotorcycleCDDeluxe
 No.premiummotorcycleCBZXtreme

2007 TheNDTVProfitCarIndia&Bike IndiaAwards 2007inthefollowingcategory:

 Overall"Bikeof theYear"-CBZX-treme
 "BikeoftheYear" -CBZ X-treme(upto150 cccategory)
 "BikeTechnologyof the Year"-Glamout PGMFI

"AutoTech of theYear"-Glamout PGMFIbyOverdrive Magazine.

20
 "Bikeofthe Year" -CBZ X-tremebyOverdriveMagazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring

Magazine“MostTrustedCompany”,byTNSVoiceoftheCustomerAwards2006.

CDDeluxeratedas"No1standard motorcycle"byTNS VoiceoftheCustomerAwards

2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
WheelerCompany).

Oneofthe8
IndiancompaniestoentertheForbestop200listofworld‟smostreputedcompanies.

No. 1 in automobileindustrybyTNSCorporateSocial Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction
Awards2006:
 SplendorPlus(Executive)
 CDDeluxe(Entry)
 Pleasure(GearlessScooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand
EquitySurvey2006.

Adjudged7thTopIndian CompanybyWallstreetJournalAsia(Top
IndianTwoWheelerCompany).

TopIndiancompanyin theAutomobile-TwoWheelersector byDun& Bradstreet-

AmericanExpressCorporateAwards2006.

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the
AwaazConsumer Awards 2006.

21
 Certificate of Export Excellence for outstanding export performance during 2003-04 fortwo-wheeler &

TheNDTVProfitCarIndia&Bike India Awards 2006inthefollowingcategory:

BikeMakerofthe Year
Bikeofthe Year -Achiever
BikeoftheYear-Achiever(upto150cccategory)
Bikeofthe Year -Glamour(up to125cccategory)
NDTVViewers'ChoiceAward toGlamourin the bikecategory

CORPORATESOCIALRESPONSIBILITY(CSR)S

TAKEHOLDERTIESATTHEGRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships,

especiallyones developed at the grassroots. The Company believes it has managed to
bring aneconomically and socially backward region in Dharuhera, Haryana, into the
nationaleconomicmainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along
theDelhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water,
andeducation facilities for both adults and children-now nurtures a vibrant, educated
andhealthycommunity.

TheFoundation hasadopted variousvillages located withinvicinityofthe

HeroHondafactoryat Dharuhera forintegrated rural development. Thisincludes:

 Installationofdeep borehand pumpsto provideclean drinkingwater.

 Constructingmetalledroadsandconnectingthese
villagestotheNationalHighway(NH-8).
 Renovatingprimaryschool buildingsandprovidinghygienicwaterand
toiletfacilities.

22
  Ensuring a proper drainage system at each of these villages to prevent water-
logging.
 Promoting non-conventional sources of energy by providing a 50 per cent
subsidyonbiogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and
55students from nearby areas. It has now grown into a modern Senior Secondary,
CBSEaffiliatedco-
educationalschoolwithover1200studentsand61teachers.Theschoolhasaspacious
playground, an ultra-modern laboratory, a well-equipped audio visual room,
anactivityroom, awell-stocked libraryandacomputer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts,
andhockeyand footballgrounds areusedbythelocalvillagers.In thenear
future,sportsacademies are planned for volley ball and basket ball, in collaboration
with NationalSportsAuthorityofIndia.

VocationalTrainingCentre

Inorderto helplocalrural
people,especiallywomen,HeroHondahassetupaVocationalTraining Centre. So far 26
batches comprising of nearly 625 women have been trained intailoring, embroidery and
knitting. The Company has helped women trained at this centreto set up a production unit
to stitch uniforms for Hero Honda employees. Interestingly,mostof thewomen arenow
self-employed.

AdultLiteracyMission
This Scheme was launched on 21st September, 1999, covering the nearby villages
ofMalpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of
36adults.HeroHondaisnow inthe processof impartingAdultLiteracyCapsules toanother100
adults by getting village heads and other prominent villagers to motivate illiterateadults.
Marriagesofunderprivilegedgirls

Marriages areorganized
fromtimetotime,particularlyforgirlsfrombackwardclasses,bytheFoundation
byprovidingfinancial helpandothersupport to thefamilies.
 RuralHealthCare
Besides setting up a modern hospital, the Foundation also regularly provides
doorstephealthcareservicestothelocalcommunity.Free
healthcareandmedicalcampsarenowaregular featurein
theHeroGroup'scommunityoutreach program
KEYPOLICIES AN ENVIRONMENTALLY AND SOCIALLY,
AWARECOMPANY
At Hero Honda, our goal is not only to sell you a bike, but also to help you every step
ofthe way in making your world a better place to live in. Besides its will to provide a
high-quality service to all of its customers, Hero Honda takes a stand as a socially
responsibleenterprise respectful ofits environment andrespectful of theimportant issues.

Hero Honda has been strongly committed not only to environmental

conservationprogrammers but also expresses the increasingly inseparable balance
between theeconomic concerns and the environmental and social issues faced by a
business. Abusiness must not grow at the expense of mankind and man's future but rather
must servemankind.
"Wemustdosomethingforthecommunityfromwhoselandwegenerateourwealth."
Afamousquotefromour WorthyChairmanMr.BrijmohanLallMunjal.
EnvironmentPolicy
We at Hero Honda are committed to demonstrate excellence in our
environmentalperformance on a continual basis, as an intrinsic element of our
corporate philosophy.Toachievethis wecommit ourselves to:

 Integrate environmental attributes and cleaner production in all our

businessprocessesandpractices
withspecificconsiderationtosubstitutionofhazardouschemicals,whereviableand
strengthen thegreeningof supplychain.
 Continueproductinnovationstoimproveenvironmentalcompatibility.
 Comply with all applicable environmental legislation and also controlling
ourenvironmental discharges through the principles of "alara" (as low as
reasonablyachievable).
 Institutionalise resource conservation, in particular, in the areas of oil,
water,electricalenergy, paints and chemicals.
  Enhanceenvironmentalawarenessofouremployeesanddealers/vendors,whileprom
otingtheirinvolvement inensuringsound environmental management.

QualityPolicy

Excellencein qualityisthecorevalueof HeroHonda'sphilosophy.

Wearecommitted at all levels to achieve high qualityin whatever wedo,

particularlyinour products and services which will meet and exceed customer's growing
aspirationsthrough:

 Innovationinproducts,processesandservices.
 Continuousimprovementinour totalqualitymanagementsystems.
 Teamworkandresponsibility.

SafetyPolicy

Hero Honda is committed to safety and health of its employees and other
personswho may be affected by its operations. We believe that the safe work
practices lead tobetterbusiness performance,motivated workforceand
higherproductivity.
Weshallcreate asafetycultureintheorganization by:

 Integratingsafetyand health matters in all our activities.

 Ensuringcompliancewithallapplicablelegislativerequirements.
 Empoweringemployees toensuresafetyintheir respectivework places.
 Promotingsafetyandhealthawarenessamongstemployees,suppliers
andcontractors.
 Continuousimprovementsinsafetyperformancethroughprecautionsbesidespart
icipationand training of employees.

INTRODUCTIONABOUTPHOENIXDEALERPROFILE(PHOENIXMOTORS)
PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX

MOTORSPVT LTD. is established on 21 stmarch 2003. The business is running by

only one man.Theownername is ch.madhu mathi thefirm islocatedat

habsigudainHyderabad.
 Generally the sale will be either on cash basis or on institutional basis.

BanklikeICICI, HDFCandCENTURIONareprovidingloans to customers.

Advertisingstrategyofphoenixmotors:

They are giving the ads through newspapers, wall paintings,

hoardingsand field staff. They are upgrading sales by introducing the schemes, group

bookings,institutionalsales andcustomer door-to-dooractivities.

CategorizationofStaffmembers:

Staffmembersarecategorizedfortechnicians,25membersareallotted for

field staff, 5 members are recruited for sales for persons, 5 persons are placedfor

evaluating for spare parts, 5 members are allotted for managerial accounts and

another3persons forcash transactionand othermembers areallotted for remaining work.

Customerrelationship:

They entertain the showroomproviding a customer‟s huge havingpool

game, internet facility and television with home there system. They provide

bilemaintenanceprograms on everyweek.

According to other dealers PHOENIX motors in first in sales and best in service.

Theytreat customer, is the very important person at PHOENIX motors customer

satisfaction istheir motto, why because, they will satisfied customer is the best

advertisement. Theyprovide better value for the customers and as well as employees also.

At PHOENIXmotorsthe customer is the boss.

SALESSTRATEGYOFPHOENIXMOTORS:

Average they are selling 25 vehicles per day. PHOENIX motors PVT

L.T.Dis the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify

leaderthroughqualitydealer).AtPHOENIXmotortheygavethequalityservicetothe
customerswhybecause„thecostislongforgottenbutthequalityisrememberedforever”.Theytre

atqualityhas a...

Q Questforexcellence

U Understandingcustomer‟sneeds

A Actiontoachievecustomer‟sappreciation.L

Leadershipdetermined tobe aleader

I involvingall the people

T TeamspirittoworkforacommongoalY

Yardsticks tomeasureprograms.

WARRANTYONPROPRIETARYITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will

bedirectly handled by the respective original manufactures (OEM‟s) except AMCO

forbatteries and Dunlop and Falcon tires and Tubes. In case of any defect in

proprietaryitems, other than the above two mentioned OEM‟S the dealers must approach

the Brachoffice dealer of the respective manufacture. For AMCO batteries and Dunlop

and falcontires, tubes claims will be accepted at our authorized dealerships per the

mutually agreedterms and conditions between HERO HONDA and of these two OEM‟s

in case the claimis not accepted for invalid reasons. Then the claim along with the refusal

note form theOEM can be sent to the warranty section at gorgon plan after due to

recommendation ofthe area service engineer. If any other six services or subsequent paid

services is

notavailedaspertherecommendedschedulegivenintheowner‟smanual.IfHEROHONDA

recommended engine oil is not used. To normal wear & tear componentslikebulbs,

electric wiring, filters, spark plug, clutch plates, braded shoes, fasteners, shimwashers, oil

seals, gaskets, rubber parts (other than tyre and tube) plastic components,chain$sprockets
and in caseof wheelrim misalignment orbend.
If there is any damage due o modification or fittings of accessories other than

onesrecommended by HERO HONDA. If the motor has been used in any competitive

eventslike tracking races or rallies. If there is any damage to the painted surface due to

industrialpollutionorotherextraneousfactors.Forclamsmadeforanyconsequentialdamagedu

eto any previous malfunction. For normal phenomenon like noise, vibration, oil

seepage,whichdo not affect theperformanceof themotorcycles.

SOCIALSERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently

thephoenix motors organized a BLOOD DONATION CAMP for the trust on

21stJanuary2006.they motivated on the consumers to participated in this camp and also

providecertificateforthecustomers

THEMARKETEDBIKESOFPHOENIX(AllHeroMotoCorp.)
CUSTOMERRELATIONSHIP:
 To entertain the customers the showroom providing a customers huge having
poolgame,Internetfacilityandtelevisionwithhometheatresystem.Theyprovidebikemaintena
nce programs on every week.According to other dealers PHOENIX motors infirst in sales
and best in service. They treat customer, is the very important person atPHOENIX motors
customer satisfaction is their motto, why because, the well satisfiedcustomer is the best
advertisement. They provide better value for the customers and aswellas
employeesalso.At PHONIX motorsthecustomeristheboss.

SOCIALSERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix

motorsorganize a BLOOD DONATION CAMPfor the trustin every year. Theymotivated
onthecustomerstoparticipated inthiscamp andalsoprovide Certificateforthecustomers.

CONSUMERBUYINGBEHAVIOR

Definition:

Consumer behavior refers to the mental and emotional process and the
observablebehaviorof
consumersduringsearching,purchasingandpostconsumptionofaproductorservice.

Consumer behavior involves studyof how peoplebuy, what theybuy, when

theybuyandwhy they buy. It blends the elements from psychology, sociology,
sociopsychology,anthropology and economics. It also tries to assess the influence on the
consumer fromgroupssuch asfamily, friends, reference groupsandsocietyingeneral.

Buyerbehaviorhas twoaspects: thefinal purchase activityvisibleto

anyobserverandthedetailed or short decision process that may involve the interplay of a
number of complexvariablesnot visibleto anyone.
What influences consumers to purchase products or services? The consumer
buyingprocess is a complex matter as many internal and external factors have an impact
on thebuyingdecisions of theconsumer.

Whenpurchasingaproductthereseveralprocesses,whichconsumersgothrough.Thesewillbe
discussed below.

Purchasedecision

Through the evaluation process discussed above consumers will reach their final
purchasedecision and they reach the final process of going through the purchase action
e.g. Theprocess of going to the shop to buy the product, which for some consumers can
be as justas rewarding as actually purchasing the product. Purchase of the product can
either bethroughthe store, the web, orover thephone.

PostPurchaseBehavior

Ever have doubts about the product after you purchased it? This simply is post
purchasebehavior and research shows that it is a common trait amongst purchasers of
products.Manufacturersofproductsclearlywantrecentconsumers tofeelproud
oftheirpurchase,it is therefore just as important for manufacturers to advertise for the
sake of their recentpurchaser so consumers feel comfortable that they own a product
from a strong andreputable organization. This limits post purchase behavior. i.e. You
feel reassured thatyouown thelatest advertised product.

Factorsinfluencingthebehavior ofbuyers.

Consumer behavior is affected by many uncontrollable factors. Just think,

whatinfluencesyoubeforeyoubuyaproductorservice?Yourfriends,
yourupbringing,yourculture,the media, arolemodelorinfluencesfromcertaingroups?

Culture is one factor that influences behavior. Simply culture is defined as our
attitudesand beliefs. But how are these attitudes and beliefs developed? As an individual
growingup, a child is influenced by their parents, brothers, sister and other family
member whomayteach themwhat is wrongor right.Theylearn abouttheir
religionandculture,whichhelpsthemdevelop these opinions, attitudesandbeliefs(AIO)
.Thesefactors will
influence their purchase behavior however other factors like groups of friends, or
peoplethey look up to may influence their choices of purchasing a particular product or
service.Reference groups are particular groups of people some people may look up
towards tothat have an impact on consumer behavior. So they can be simply a band like
the SpiceGirls or your immediate family members. Opinion leaders are those people that
you lookup to because your respect their views and judgments and these views may
influenceconsumer decisions. So it maybe a friend who works with the IT trade who may
influenceyour decision on what computer to buy. The economical environment also has
an impacton consumer behavior; do consumers have a secure job and a regular income to
spend ongoods? Marketing and advertising obviously influence consumers in trying to
evoke themtopurchaseaparticular product or service.

Peoples social status will also impact their behavior. What is their role within society?
Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly
beingparents affects your buying habits depending on the age of the children, the type of
jobmay mean you need to purchase formal clothes, the income which is earned has
animpact. The lifePerformence of someone who earns £250000 would clearly be
differentfromsomeonewho earns £25000. Alsocharactershavean
influenceonbuyingdecision.Whether the person is extrovert (out going and spends on
entertainment) or introvert(keeps to themselves and purchases via online or mail order)
again has an impact on thetypesof purchases made.

Maslow’sHierarchyof Needs

Abraham Maslow hierarchy of needs theory sets out to explain what

motivatedindividualsinlifetoachieve. Heset outhis answerin aformofahierarchy.
Hesuggestsindividuals aim to meet basic psychological needs of hunger and thirst.
When this hasbeen met they then move up to the next stage of the hierarchy, safety
needs, where thepriority lay with job security and the knowing that an income will be
available to themregularly. Social needs come in the next level of the hierarchy, the
need to belong or beloved is a natural human desire and people do strive for this
belonging. Esteem need isthe need for status and recognition within society, status
sometimes drives people, theneed to have a good job title and be recognized or the need
to wear branded clothes as asymbolof status.
Buthowdoesthisconcepthelpanorganizationtryingtomarketaproductorservice?
Well as we have established earlier within this website, marketing is about meeting
needsand providing benefits, Maslow‟s concept suggests that needs change as we go
along ourpath of striving for self-actualization. Supermarket firms develop value brands
to meet thepsychological needs of hunger and thirst. Harrods develops products and
services
forthosewhowanthavemettheiresteemneeds.SoMaslow‟sconceptisusefulformarketersasit
canhelp themunderstand anddevelop consumerneedsandwants.

CUSTOMER

A competitor, in order to achieve the loyalty of the customers, offer an

endlessinformation flow on the products and services and thereby continuously educates
thecustomer about the opportunities in the market.Therefore today even an ordinary
person,is in possession of the large amount of data to use for the purpose of making a
decision asto which products/ services he would go in for.The competitive environment is
makingthe customer wisher day by day and he is able to take a large number of decisions
on hisown.The experts‟ advice of the olden days is being replaced by the customer‟s
ownwisdom.This is making the market place more complicated and
unpredictable.Thecustomer is getting smarter today and he is able to decide his own
money‟s worth andtherefore, organization across the board are `pursuing the customer‟s
views to streamlinetheirbusiness strategies to remain customer-worthy.
People are the prime factor for any organization to maintain the effectiveness
andthus develop the right focus for the people, so that each one perceives as clearly
aspossible his position in the cycle of growth and prosperity of the
organization.Agendaswillhavetobedrawninsuchamannerandcommunicatedsoeffectivelyth
attheindividual is able to enjoy a meaningful life in the organization, endowed with
authorityand responsibilityfortherole heplays.
“One should be able to see for oneself the impact of the contributions one
hasmade towards the growth and prosperity cycle of the organization.As a matter of fact
therelationship between the people and the organization should be so designed that each
oneis here to experience the pleasure of winning and pain of losing.People alone are of
nosignificance unless and until they have an intimate and continuous interaction with
theprocess”.
Therefore organization have to take continuous care to update their quality of
thepeopleandthatofprocessessimultaneouslysothatahealthyrelationshipisbuiltupand
maintainedmakingtherelationshiphappyandhealthyone.This,whendone,shouldgeneratein
peopleasenseof entrepreneurship ownership oftheorganization.

“Since the customer are the main focus of any organization its structure should
beso flat i.e., people fluently interact with the customer and maintain continuous
feedbackabout the customer‟s moods and methods in order to shape its business portfolio
andstrategies”.

It is very important to find whether the fundamentals of the organization

aregetting strong as desired.It is therefore rightly said that a well trained army with
qualityarms and ammunitions and with a sense of involvement can got the nations
frontiers inndesirable and dependable manner similarly: people at the operation level with
superiorcompetency and capability supplied with superior products and strategies can
acquire aplace for an organization in the market place.Retail outlets are the contact points
of thecustomers and therefore the image of the organization largely depends upon the
quality ofthepeople managingtheinterventionsand transactions at thelevel.

TheConsumerMarket:

The consume market consists of all the individuals and households who buy
oracquire goods and services for personal consumption.The simplest model
consumerbuyer behavior is the stimulus – response model.According to this model
marketingstimuli ( the four Ps) and the major forces (economic, technological, political,
cultural)entertheconsumer‟s“blackbox”and reproduce certainresponses.
 Social factors influence buyer‟s behavior.A person‟s reference group-
family,friends, social organizations, professional associations- strongly affect product and
brandchoices.Thebuyer‟sage,life-
cyclestage,occupation,economiccircumstances,lifePerformence, personality, and other
personal.Characteristics influence his or herbuying decisions.Consumer life-Performences
the pattern of acting and interacting in theworldarealso an importantinfluences on
purchasedecisions.

Finally,consumer-buyingbehaviorisinfluencedbyfourmajorpsychologicalfactors-
motivation, perception, learning, and beliefs and attitudes.Each of these
factorsprovidesadifferentperspectiveforunderstandingtheworkingsofthebuyer‟sblackbox.
 CONSUMERPERCEPTION

Itcanbedefinedastheprocessbywhichanindividualselects,organizes,andinterprets
stimuli into a meaningful and coherent picture of the world. A stimulus is
aunitofinputtoany ofthesenses.Examplesofstimulusie,sensory
inputincludeproducts,packages,brandnames,
advertisements,andcommercials,sensoryreceptor.
Marketers do not want their target audience to look only at the models in their
ads.They want to communicate something about their products as well.Marketers often
useattractive models,humour, other factors to attract the target market‟s
interest.Informationprocessing is a series of activities by which stimuli are perceived,
transformed in toinformation,andstored.Information processingmodel hasfourmajorsteps
orstages,
a) Exposure
b) Attention
c) Interpretation,and
d) Memory
 Thefirstthreeconstituteperception.

Exposure occurs when a stimulus such as an Advertisement hoarding comes within

therange of a person‟s vision.Attention occurs when the information from vision pass on to
thebrain for processing.Interpretation is the assignment of meaning to the received
sensations.Memory is the short – term use of the meaning for immediate decision-making or
the longer-termretention of themeaning.

Thebasiccomponentsshownin thefigurecanbe arranged intofour groups:

1. Stimuli,whichserveastheraw materialto beprocessed.

The stages of processing activities, which are linked by arrows and mainly internal to
thecustomer.
Situationalandconsumercharacteristicswhichcaninfluencethenatureoftheseprocessing
activities, and an executive system, which guides the process by regulating the typeand
intensityof processingactivitiesengaged in,at anytime.

ConsumerBuyingBehavior

Possibly the most challenging concept in marketing deals with understanding why buyers
dowhattheydo(ordon‟tdo).ButsuchknowledgeiscriticalformarketerssinceWantingastrongunders
tanding of buyer behavior will help shed light on what is important to the customer andalso
suggest the important influences on customer decision-making. Using this
information,marketerscan createmarketingprograms thattheybelievewill be ofinterest
tocustomers.

As you might guess, factors affecting how customers make decisions are extremely
complex.Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just
to makethings more interesting. Since every person in the world is different, it is impossible to
havesimple rules that explain how buying decisions are made. But those who have spent many
yearsanalyzingcustomer
activityhavepresenteduswithuseful“guidelines”inhowsomeonedecideswhetheror not to

47
makeapurchase.

48
In fact, pick up any textbook that examines customer behavior and each seems to approach
itfrom a different angle. The perspective we take is to touch on just the basic concepts that
appearto be commonly accepted as influencing customer behavior. We will devote two sections
of thePrinciples of Marketing Tutorials to customer behavior. In this section we will examine
thebuying behavior of consumers (i.e., when people buy for personal reasons) while in the
BusinessBuyingBehaviortutorialwewillexaminefactorsthatinfluencebuyer‟sdecisionsinthebusine
ssmarket.

WhyConsumersBuy

As we discussed in the What is Marketing?tutorial, customers make purchases in order to

satisfyneeds. Some of these needs are basic and must be filled by everyone on the planet (e.g.,
food,shelter) while others are not required for basic survival and vary depending on the person.
Itprobably makes more sense to classify needs that are not a necessity as wants or desires. In
fact,in many countries where the standard of living is very high, a large portion of the
population‟sincomeis spent on wants and desires ratherthan on basic needs.

In this tutorial when we mention the consumer we are referring to the actual buyer, the
personspending the money. But is should also be pointed out that the one who does the buying
is notnecessarily the user of what is bought and that others may be involved in the buying
decision inaddition to the actual buyer. While the purchasing process in the consumer market is
not ascomplex as the business market, Wanting multiple people involved in a purchase decision
is notunusual. For example, in planning for a family vacation the mother may make the
hotelreservations but others in the family may have input on the hotel choice. Similarly, a father
maypurchasesnacks at the grocerystorebut hisyoung child maybethe onewhoselected it
fromthestoreshelf.

Sounderstandingconsumerpurchasebehaviorinvolvesnotonlyunderstandinghowdecisionsaremad
ebut also understandingthedynamics thatinfluencepurchases.
WhatInfluencesPurchasing

As we discussed the decision-making process for consumers is anything but straight

forward.There are many factors that can affect this process as a person works through the
purchasedecision. The number of potential influences on consumer behavior is limitless.
However,marketers are well served to understand the KEY influences. By doing so they may
be in aposition to tailor their marketing efforts to take advantage of these influences in a way
that willsatisfy the consumer and the marketer (remember this is a key part of the definition
ofmarketing).

Forthepurposesofthistutorial wewillbreaktheseinfluences
downintothreemaincategories:Internal, External and Marketing. However, those interested in
learning more about customerbuyingactivitymaywant to consultone ormoreconsumer
behaviorbookswheretheywill findadditionalmethods forexplainingconsumer buyingbehavior.
Forthe most part theinfluences arenot mutuallyexclusive.Instead,
theyareallinterconnectedand,as we will see, worktogether to form who we areand how
webehave.

For each of the influences that are discussed we will provide a basic description and also
suggestitsimplicationtomarketers.Bearin mindweonlyprovide
afewmarketingimplicationsforeachinfluence; clearlytherearemanymore.

InternalInfluences:PerceptualFilter

We start our examination of the influences on consumer purchase decisions by first

lookinginsideourselvesto seewhich arethemost importantinternalfactors thataffect
howwemakechoices.

PerceptualFilter

Perception is how we see ourselves and the world we live in. However, what ends up
beingstored inside us doesn‟t always get there in a direct manner. Often our mental makeup
resultsfrom information that has been consciously or subconsciously filtered as we experience it,
aprocesswerefertoasaperceptualfilter.Tousthis isourreality,thoughitdoesnotmeanitisanaccurate
reflection on what is real. Thus, perception is the way we filter stimuli (e.g., someonetalkingto
us, reading anewspaper story) and thenmakesenseout of it.

Perceptionhasseveralsteps.

 Exposure– sensingastimuli (e.g. seeingan ad)

 Attention–an efforttorecognizethenatureof astimuli(e.g. recognizingit isanad)
 Awareness–assigningmeaningtoastimuli(e.g.,humorousadforparticularproduct)
 Retention–addingthemeaningtoone‟sinternalmakeup(i.e.,producthasfunads)

How these steps are eventually carried out depends on a person‟s approach to learning.
Bylearningwemean how someonechangeswhat theyknow, which inturn mayaffect how
theyact.There are many theories of learning, a discussion of which is beyond the scope of this
tutorial,however, suffice to say that people are likely to learn in different ways. For instance, one
personmaybeable to focus verystronglyon acertainadvertisement and be able to retain the
information after being exposed only one time while another person may need to be exposed
tothesameadvertisement manytimesbeforehe/sheevenrecognizeswhatitis.Consumersarealsomore
likely to retain information if a person has a strong interest in the stimuli. If a person is inneed of
new car they are more likely to pay attention to a new advertisement for a car whilesomeone
who does not need a car may need to see the advertisement many times before theyrecognizethe
brand ofautomobile.

MarketingImplications:
Marketers spend large sums of money in an attempt to get customers to have a
positiveimpression of their products. But clearly the existence of a perceptual filter suggests that
gettingto this stage is not easy. Exposing consumers to a product can be very challenging
consideringthe amount of competing product messages (ads) that are also trying to accomplish
the sameobjective (i.e., advertising clutter). So marketers must be creative and use various
means todeliver their message. Once the message reaches consumer it must be interesting
enough tocapture their attention (e.g., talk about the product‟s benefits). But attending to the
message isnot enough. For marketers the most critical step is the one that occurs with awareness.
Heremarketers must continually monitor and respond if their message becomes distorted in ways
thatwillnegativelyshapeits meaning.Thiscanoftenhappendueinpart
tocompetitiveactivity(e.g.,comparison advertisements). Finally, getting the consumer to give
positive meaning to themessage they have retained requires the marketer make sure that
consumers accurately interpretthefacts about theproduct.

InternalInfluences:Knowledge

Knowledgeisthesumofallinformationknown byaperson. Itis thefactsofthe worldashe/sheknows it

and the depth of knowledge is a function of the breadth of worldly experiences and
thestrengthofanindividual‟slong-termmemory.Obviouslywhatexistsasknowledgetoan
individualdependsonhowanindividual‟sperceptualfiltermakessenseoftheinformation
itisexposedto.

MarketingImplications:
Marketersmayconductresearchthatwillgaugeconsumers‟levelofknowledgeregardingtheir
product.As wewill seebelow, it is likelythat other factors influencingconsumerbehaviorareinlarge
part shaped by what is known about a product. Thus, developing methods (e.g., incentives)to
encourage consumers to accept more information (or correct information) may affect
otherinfluencingfactors.

InternalInfluences:Attitude

Insimpletermsattitudereferstowhatapersonfeelsorbelievesaboutsomething.Additionally,attitude
may be reflected in how an individual acts based on his or her beliefs. Once formed,attitudes
can be very difficult to change. Thus, if a consumer has a negative attitude toward
aparticularissueit will takeconsiderableeffort to changewhat theybelieveto betrue.

MarketingImplications:
Marketersfacingconsumerswhohaveanegative attitudetowardtheirproductmustwork
toidentifythekeyissuesshapingaconsumer‟sattitudethenadjustmarketingdecisions(e.g.,
advertising) in an effort to change the attitude. For companies competing against strong rivals
towhom loyal consumers exhibit a positive attitude, an important strategy is to work to see
whyconsumers feel positive toward the competitor and then try to meet or beat the competitor
ontheseissues. Alternatively,acompanycantryto locatecustomers
whofeelnegativelytowardthecompetitorand then increaseawareness amongthis group.

InternalInfluences:Personality

An individual‟s personality relates to perceived personal characteristics that are

consistentlyexhibited, especially when one acts in the presence of others. In most, but not all,
cases thebehaviors one projects in a situation is similar to the behaviors a person exhibits in
anothersituation.In thiswaypersonalityisthesum ofsensoryexperiencesothersget
fromexperiencinga person (i.e., how one talks, reacts). While one‟s personality is often
interpreted by those weinteract with, the person has their own vision of their personality, called
Self Concept, whichmayor maynot be thesame has how others viewus.

MarketingImplications:
Formarketers itis importantto knowthat consumersmakepurchasedecisions tosupport their
self concept. Using research techniques to identify how customers view themselves may
givemarketersinsightintoproductsandpromotionoptionsthatarenotreadilyapparent.For
example,when examining consumers a marketer may initially build marketing strategy around
moreobvious clues to consumption behavior, such as consumer‟s demographic indicators (e.g.,
age,occupation, income). However, in-depth research may yield information that shows
consumersare purchasing products to fulfill self-concept objectives that have little to do with
thedemographiccategorytheyfall into (e.g., seniorcitizen maybemakingpurchases that make
themfeelyounger).Appealingtotheconsumer‟sselfconceptneedscouldexpandthemarkettowhichth
e product is targeted.

InternalInfluences:LifePerformence

This influencing factor relates to the way we live through the activities we engage in
andinterests we express. In simple terms it is what we value out of life. LifePerformence is
oftendetermined byhow wespend ourtime and money.

MarketingImplications:
Products and services are purchased to support consumers‟ lifePerformences. Marketers
haveworked hard researching how consumers in their target markets live their lives since
thisinformation is key to developing products, suggesting promotional strategies and
evendetermininghowbestto distributeproducts.Thefact thatlifePerformenceis sodirectlytied
tomarketing activity will be further examined as we discuss developing target market
strategies(SeeTargetingMarkets)tutoria

InternalInfluences:Motivation

Motivationrelatesto our desireto achievea certain outcome.Manyinternal

factorswehavealreadydiscussedcan
affectacustomer‟sdesiretoachieveacertainoutcomebutthereare
others. For instance, when it comes to making purchase decisions customers‟ motivation
couldbe affected by such issues as financial position (e.g., Can I afford the purchase?),
timeconstraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I
getting mymoney’sworth?), andperceived risk(e.g.,What happensif Imakeabad decision?).
MarketingImplications:
Motivation is also closely tied to the concept of Involvement, which relates to how much
effortthe consumer will exert in making a decision. Highly motivated consumers will want to
getmentally and physically involved in the purchase process. Not all products have a
highpercentage of highly involved customers (e.g., milk) but marketers who market products
andservices that may lead to high level of consumer involvement should prepare options that
will beattractivetothisgroup.Forinstance, marketersshouldmakeiteasyfor
consumerstolearnabouttheir product (e.g., information on website, free video preview) and, for
some products, allowcustomersto experiencetheproduct (e.g.,freetrial) beforecommittingto
thepurchase

InternalInfluences:Roles

Roles represent the position we feel we hold or others feel we should hold when dealing in
agroupenvironment.Thesepositionscarrycertainresponsibilities yetitisimportanttounderstandthat
some of these responsibilities may, in fact, be perceived and not spelled out or even acceptedby
others. In support of their roles, consumers will make product choices that may varydepending
on which role they are assuming. As illustration, a person who is responsible forselecting snack
food for an office party his boss will attend may choose higher quality
productsthanhewouldchoosewhen selectingsnacks forhis family.

MarketingImplications:
Advertisers often show how the benefits of their products aid consumers as they perform
certainroles. Typically the underlying message of this promotional approach is to suggest that
using theadvertiser‟s product will help raise one‟s status in the eyes of others while using a
competitor‟sproductmayhaveanegativeeffect on status.

ExternalInfluences: Culture

Consumerpurchasingdecisionsareoftenaffected byfactors thatareoutsideoftheir controlbuthave

direct or indirect impact on how we live and what we consume. One example of this
areculturalfactors
Culturerepresents thebehavior, beliefs and,in manycases,the wayweactlearned byinteractingor
observing other members of society. In this way much of what we do is shared
behavior,passedalong fromonememberofsocietytoanother.Yetcultureisabroadconceptthat,whileof
interest to marketers, is not nearly as important as understanding what occurs within
smallergroups or Sub-Cultures to which we may also belong. Sub-cultures also have shared
values butthis occurs within smaller groups. For instance, sub-cultures exist where groups share
similarvalues in terms of ethnicity, religious beliefs, geographic location, special interests and
manyothers.

MarketingImplications:
As part of their efforts to convince customers to purchase their products, marketers often
usecultural representations, especially in promotional appeals. The objective is to connect
toconsumers using cultural references that are easily understood and often embraced by
theconsumer. By doing so the marketer hopes the consumer feels more comfortable with or
canrelatebettertotheproductsinceitcorrespondswiththeirculturalvalues.Additionally,smartmar
keters use strong research efforts in an attempt to identify differences in how sub-
culturebehaves. These efforts help pave the way for spotting trends within a sub-culture,
which themarketer can capitalize on through new marketing tactics (e.g., new products, new
saleschannels,added value,etc.).

ExternalInfluences: GroupMembership

Inadditionto culturalinfluences, consumersbelongto manyother groupswith

whichtheysharecertain characteristics and which may influence purchase decisions. Often these
groups containOpinion Leaders or others who have major influence on what the customer
purchases. Some ofthebasicgroups wemaybelongto include:

 Social Class – represents the social standing one has within a society based on
suchfactorsas income level,education, occupation
 Family–one‟sfamilysituationcanhaveastrongeffectonhowpurchasedecisionsaremade
  Reference groups–most consumerssimultaneouslybelongto
manyothergroupswithwhich theyassociateor, in some cases, feel theneed to
disassociate

MarketingImplications:
Identifying and understanding the groups consumers belong to is a key strategy for
marketers.Doing so helps identify target markets, develop new products, and create appealing
marketingpromotions to which consumers can relate. In particular, marketers seek to locate
group leadersand others to whom members of the group look for advice or direction. These
opinion leaders, ifwell respected by the group, can be used to gain insight into group behavior
and if these opinionleaders accept promotional opportunities could act as effective spokespeople
for the marketer‟sproducts.

ExternalInfluences: Purchase Situation

PurchaseSituation

A purchase decision can be strongly affected by the situation in which people find themselves.
Ingeneral, asituationisthecircumstancesapersonfaceswhenmakingapurchasedecision,suchasthe
nature of their physical environment, their emotional state, or time constraints. Not allsituations
are controllable, in which case a consumer may not follow their normal process formakinga
purchase decision.For instance,ifa personneedsaproductquicklyanda
storedoesnotcarrythebrandtheynormallypurchase,thecustomermaychoosea competitor‟sproduct.

MarketingImplications:
Marketers can take advantage of decisions made in uncontrollable situations in at least two
ways.First, marketers can use promotional methods to reinforce a specific selection of products
whenthe consumer is confronted with a particular situation. For example, automotive services
can bepurchased that promise to service vehicles if the user runs into problems anywhere and
atanytime.Second,marketerscanusemarketingmethodsthatattempttoconvince
consumersthatasituationislesslikelytooccurifthemarketer‟s productisused.Thiscan
alsobeseenwithautoproducts, where marketers explain that using their product will prevent
unexpected damage totheirvehicles.
TypesofConsumerPurchase Decisions

Consumersarefaced withpurchasedecisions nearlyeveryday. Butnotalldecisionsaretreatedthe

same. Some decisions are more complex than others and thus require more effort by
theconsumer. Other decisions are fairly routine and require little effort. In general, consumers
facefourtypes of purchasedecisions:

Minor New Purchase – these purchases represent something new to a consumer but in
thecustomer‟smindisnotaveryimportantpurchaseintermsofneed,moneyorotherreason(e.g.,status
within a group).

 MinorRe-Purchase– thesearethemostroutineofallpurchasesand oftentheconsumerreturns

to purchase the same product without giving much thought to other productoptions(i.e.,
consumer is brand loyalty).
 Major New Purchase – these purchases are the most difficult of all purchases because
theproduct being purchased is important to the consumer but the consumer has little or
noprevious experience making these decisions. The consumer‟s lack of confidence
inmakingthistypeofdecisionoften(butnot always)requirestheconsumertoengagein
anextensivedecision-makingprocess..
 MajorRe-Purchase-thesepurchasedecisionsare alsoimportantto
theconsumerbuttheconsumer feels confident in making these decisions since they have
previous experiencepurchasingthe product.

Formarketersitisimportanttounderstandhowconsumerstreatthepurchasedecisionstheyface. If a
company is targeting customers who feel a purchase decision is difficult (i.e., MajorNew
Purchase), their marketing strategy may vary greatly from a company targeting
customerswhoview thepurchasedecisionas routine. In fact,the same companymayfaceboth
situationsatthesame time;forsometheproductis new,whileother customers seethe purchase as
routine.
Theimplicationofbuyingbehaviorfor marketers
isthatdifferentbuyingsituationsrequiredifferentmarketingefforts.
How ConsumersBuy

Sonowthatwehavediscussedthefactorsinfluencingaconsumer‟sdecisiontopurchase,let‟sexamin
ethe processitself. Thisprocess ispresented ina sequenceof 5steps asshown below.

However, whether a consumer will actually carryout each step depends on the type of
purchasedecision that is faced. For instance, for minor re-purchases the consumer may be quite
loyal tothe same brand, thus the decision is a routine one (i.e., buy the same product) and little
effort isinvolved in making a purchase decision. In cases of routine, brand loyal purchases
consumersmay skip several steps in the purchasing process since they know exactly what they
wantallowing the consumer to move quickly through the steps. But for more complex decisions,
suchas Major New Purchases, the purchasing process can extend for days, weeks, months or
longer.So in presenting these steps marketers should realize that, depending on the
circumstancessurroundingthepurchase, the importanceofeachstep mayvary.

PurchaseDecisionSteps1and 2

1. Need/Want/Desireisrecognized

In the first step the consumer has determined that for some reason he/she is not satisfied
(i.e.,consumer‟s perceived actual condition) and wants to improve his/her situation (i.e.,
consumer‟sperceiveddesiredcondition).Forinstance,internaltriggers,suchashunger
orthirst,maytell theconsumerthatfoodordrinkisneeded.Externalfactorscan
alsotriggerconsumer‟sneeds.
Marketers are particularly good at this through advertising, in-store displays and even
theintentional use of scent (e.g., perfume counters). At this stage the decision-making process
maystall if the consumer is not motivated to continue (see Motivation above). However, if
theconsumer does havethe internal driveto satisfytheneed theywill continueto thenextstep.

2. SearchforInformation

Assuming consumers are motivated to satisfy his or her need, they will next undertake a
searchfor information on possible solutions. The sources used to acquire this information may
be assimple as remembering information from past experience (i.e., memory) or the consumer
mayexpendconsiderableefforttolocateinformationfromoutsidesources(e.g.,
Internetsearch,talkwith others, etc.). How much effort the consumer directs toward searching
depends on suchfactors as: the importance of satisfying the need, familiarity with available
solutions, and theamount of time available to search. To appeal to consumers who are at the
search stage,marketers should make efforts to ensure consumers can locate information related
to theirproduct. For example, for marketers whose customers rely on the Internet for
informationgathering,attaininghighrankingsinsearchengineshasbecome
acriticalmarketingobjective.

Purchase DecisionSteps3, 4and5

3. EvaluateOptions

Consumers‟ search efforts may result in a set of options from which a choice can be made.
Itshouldbenotedthattheremaybetwolevelstothisstage.Atlevelonetheconsumermaycreatea set of
possible solutions to their needs (i.e., product types) while at level two the consumer maybe
evaluating particular products (i.e., brands) within each solution. For example, a consumerwho
needs to replace a television has multiple solutions to choose from such as plasma, LCD andCRT
televisions. Within each solution type will be multiple brandsfrom which to choose.Marketers
need to understand how consumers evaluate product options and why some productsare included
while others are not. Most importantly, marketers must determine which criteriaconsumers are
using in their selection of possible options and how each criterion is evaluated.Returning to the
television example, marketing tactics will be most effective when the marketercantailor their
effortsbyknowingwhatbenefitsare mostimportanttoconsumerswhenselecting
options(e.g.,picturequality,brandname,screensize,etc.)andthendeterminetheorderofimportanceofe
ach benefit.

4. Purchase

In many cases the solution chosen by the consumer is the same as the product whose
evaluationis the highest. However, this may change when it is actually time to make the
purchase. The"intended"purchasemaybealteredat thetime ofpurchaseformanyreasons suchas:
theproductis out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store
salespersonmentions a competitor‟s offer), the customer lacks the necessary funds (e.g., credit
card notworking), or members of the consumer‟s reference group take a negative view of the
purchase(e.g., friend is critical of purchase). Marketers whose product is most desirable to the
consumermust make sure that the transaction goes smoothly. For example, Internet retailers have
workedhard to prevent consumers from abandoning online purchase (i.e., online shopping carts)
bystreamlining the checkout process. For marketers whose product is not the consumer‟s
selectedproduct, last chance marketing efforts may be worth exploring, such as offering
incentives tostorepersonnel to"talk up"theirproduct at the checkout line.

5. After-PurchaseEvaluation

Oncethe consumerhasmadethepurchasetheyarefaced withan evaluationofthedecision.If

the product performs below the consumer‟s expectation then he/she will re-evaluate
satisfactionwith the decision, which at its extreme may result in the consumer returning the
product while
inlessextremesituationstheconsumerwillretainthepurchaseditembutmaytakeanegativeviewof the
product. Such evaluations are more likely to occur in cases of expensive or highlyimportant
purchases. To help ease the concerns consumers have with their purchase evaluation,marketers
need to be receptive and even encourage consumer contact. Customer service centersandfollow-
upmarketresearch areusefultoolsinhelpingtoaddresspurchasers‟concerns.
CHAPTER2
OBJECTIVEOFTHESTUDY:

Main objective:The main objective of the study is to study the buying motives of
thecustomersregardingpurchasingbikesinHeroMotoCorpLtd.
(FormerlyHeroHondaMotorsLtd.).
SPECIFICOBJECTIVES:

1. To gain an understanding of the theories and concepts of Buyer Behavior, to find the
agegroup,educationalbackground,occupation/professionandincomeandincomeleveloftheresp
ondents.
2. Toknowwhetherthecustomeris interestedtopurchasebikesin HeroMotoCorp Ltd.
(FormerlyHeroHonda MotorsLtd.)ornot.
3. TofindrespondentsreasonforpurchasingthebikesinHero MotoCorpLtd.
(FormerlyHeroHondaMotorsLtd.)

4. Toknowtheimportant reasontherespondentsgive toeachfactor forpurchasingbikesin

HeroMotoCorpLtd. (FormerlyHero HondaMotorsLtd.).
5. Toknowthecustomer servicesatisfactionfromtherespondents.
6. Toknowtheawareness ofthebrandHeroMotoCorpLtd.

NEEDFORTHESTUDY:

CustomersconsidervariousfactorsforpurchasingofbikesinHeroMotoCorpLtd.(Formerly Hero
Honda Motors Ltd.). The factors they consider are based on certain demographicvariables such
as income, age, occupation etc.It also depends on attributes and life Performanceofthe customer
buyingbehaviorbecomes essential toget acompetitive edge.

SCOPEOFTHEPROJECT
ThestudyaimstomeasurebuyingbehaviorlevelofthecustomersregardingHeroMotoCorpLtd.
industries. The area within which the study was conducted regarding the information
theprimarydataiscollectedintheformofquestionnairecollectedfromthedealersinRangareddy
district.Tosumuptheprojecthadwithinthescopeofthestudyintheareaof“CustomerBuyingBehavior”of
Hero MotoCorpLtd.inRangareddydistrictforaparticular time(2012).

Theresearchmeasurestheexperiencesofcustomers.Definesandanalysesthe experiences
basedonkeydeliverables. Gains insights into Customer expectations.

ResearchMethodology

SOURCESOFDATA:

DATA COLLECTION
INSTRUMENTS:PRIMARRYMETHOD
:

Primarydataarethose,whicharecollectedfreshandforthefirsttimeandthishappentobeoriginal
in character.In this studyprimarydatawas collected byinterview schedule method.

SECONDARYMETHOD:

Secondary data are those, which are collected from existing data.Secondary data for
thisstudy include appropriate material from newspaper, Magazines, Broachers, Company
Reports,StandardTextBooks,andinformationfromInternethasalsobeen
acquiredwherevernecessary.

FIELDWORK:

Theprojectinvolvedafieldworkofaround1month15dayswhereinthesurveywascarriedout.

ThesurveywasconductedindifferentareasofHyderabadsuchasKoti,bowenpally,Ameerpet,
L.BNagar,Hayathnagar.
METHODOLOGICALASSUMPTIONS:

a) Theprimarydatahas been collectedbyan interview schedule.

b) Thesample forthestudywasselected onaconveniencebasis

c) Allprimarydatacollected istrueandreflectstheactualactions
oftheRespondents.

d) Thedatacollectedhasbeencoded,tabulatedandanalyzedintologicalState
mentusingsimple statisticalmethods, pie charts,etc.

DESCRIPTIONOFTHERESEARCHDESIGN:

A research design is a logical and systematic plan prepared for directing a research
studyitspecifiesthemethodologyandtechniquetobeadoptedforachievingtheobjectives.Itconstitutest
he blueprint forthe collection, measurementand analysis ofdata.

The main aim of the study is to evaluate the brand image of Hero Honda.The study
isdescriptive in nature. Surveys are best-suited method for descriptive research.So survey
methodisused forthe study.

Thepreparationofaresearchplanforastudyaidsinestablishingdirectiontothestudyandknowingexactly
what has to bedoneand howandwhen ithas to bedoneateverystage.

A research plan describes the boundaries of research activities and enables the research
tochannel his energies in the right work.With clear research objectives, in view the research
canproceedsystematicallytowards his achievements.
SAMPLINGPROCEDURES:

Sampling is a systematic approach for selecting a few elements from an entire

collectionof units (population) in order to make some inference about the total population it is a
smallspecimen or a segmentof the whole population representing itsgeneral qualities asfor
aspossible.Thestudywasundertaken byconveniencesampling.

SAMPLESIZE:
Thestudyisconducted on a sample of 100 respondents.

SAMPLINGFRAME:
ThepopulationforthestudyconsistsofBigbazaarownersinthecitiesofHyderabadandSecunderabad.

RESEARCHINSTRUMENTS:
Aninterviewschedule wasused toconduct thestudy.

LIMITATIONS:

I. TheTimePeriodOfProjectIs45Days.
II. ThoughTheCustomersWantedTo Give InformationTheycouldnotGive As
ItWastesTheirBusiness Time.
III. TheAccuracyOfTheAnswers DependsUpon TheModeOfInterest Of Respondents.
IV. Theopinionsofthesamplemayormaynotdepicttheexactopinionsofthetotalpopulation.
CHAPTER 3

DATAANALYSIS

&INTERPR

ETATION
AGEGROUP OFTHE RESPONDENTS:

Thebelow tableshows theagegroupof therespondents surveyed:

AGE NoOfRespondents
18-28 8
28-38 28
38-48 10
Above48 54
Total 100

NoOfRespondents
120

100

80

60 NoOfRespondents
40

20

0
18-2828-3838-48Above48Total

INFERENCE: From the above table, 8% of the respondents belong to the age group of 18-
28years, 28% of the respondents belong to the age group of 28-38 years, 10% of the
respondentsbelong to the age group of 38-48 years, 54% of the respondents belong to the age
group of above48years.
OCCUPATIONOFTHE RESPONDENTS:

Thebelow tableshows thetypeof respondentsof therespondents surveyed.

Occupation NoOfRespondents
Student 0
Business 50
PrivateEmployee 32
GovtEmployee 18
Total 100

NoOfRespondents
100
90
80
70
60
50
40 NoOfRespondents
30
20
10
0

INFERENCE: From the above table 0% of the respondents are students, 50% of the
respondentsarebusinessmen,32%of therespondents areprivateemployee, 18%ofthe
respondentsareGovtemployee.
WANTINGABIKEOR NOT:

Thebelow tableshows that whetherthe respondents iswantingabike ornot

Wantingabike ornot Noofrespondents

Yes 80
No 20
Total 100

Havingatwowheelerornot

20%
Yes

No
80%

INFERENCE:

Fromthe abovetable80%ofpeople wantingbikeand 20%do not want bike.

TYPEOFBIKETHATTHERESPONDENTIS WANTING:

ThebelowtableshowsthetypeofBIKEthat the respondentis wanting.

Typeof BIKE Noofrespondents %ofrespondents

100CC 51 51
180CC 14 14
150CC 26 26
200CC 09 9

120

100

80

%ofrespondents
60
Noofrespondents

40

20

0
100CC 180CC 150CC 200CC

INFERENCE:

From the above table 51%of the respondents are Wanting Hero MotoCorp Ltd 100CC
BIKE.14%of the respondentswant180CC. 26%of the respondents are wanting 150CC.9% of
therespondents want200CC.
SOURCESOFINFORMATION

The below table shows, from where did the respondent get the information about
theBIKE.

Sourcesofinformation Noofrespondents

Offers 15

Advertisements 27

Referredfromfriends &relatives 33

Technology 10

FinanceSchemes 15

Total 100

15% 15.00% Offers

Advertisements
10%
Referredfromfriends &
relativesTe
27.00%
chnology

FinanceSchemes
33%

INFERENCE:

From the above table 15%of people known from offers, 27% of people known
fromadvertisements,and33% ofpeopleknownfromtheirfriends
andrelatives,10%ofpeopleknownfromtechnology, 15%ofpeople knownfromfinanceschemes.
SATISFACTIONWITH HEROMOTOCORP LTDBIKE:

HERO Performance Mileage Features Price pickup Reliability BrandImage

Excellent 10 25 24 02 05 08 20
Verygood 25 24 15 18 06 02 20
Good 10 21 25 12 15 35 25

Average 21 10 10 14 5 6 8

Poor 0 2 1 8 2 3 1

100%
90%
80%
70%
60% Poor
50% AverageGoodVerygood
40% Excellent
30%
20%
10%
0%

INFERENCE:

From the above table 17% of the respondents preferred PERFORMENCE as their main
motive,22% of the respondents preferred PRICE as their main motive, 4%of the respondents
preferredFEATURES as their main motive, 22% of the respondents preferred TRANSPORT as
theirmain motive, 2% of the respondents preferred RELIABILITY as their main motive, 21% of
therespondentspreferredBRANDIMAGEas their main motive.
PERFORMENCE:

The following table shows that, some of the brands of bikes respondents selected performance
astheirmain motive.

Brand Noofrespondents
HERO 32
BAJAJ 35
HONDA 30
SUZIKI 03
Total 100

Noofrespondents

HEROBAJAJHONDASUZIKI
Total

INFERENCE:

TheabovetableshowsthatBajajandHondacompanies arethe competitorswithHEROBikes.

PRICE:

The following table shows that, some of the brands of respondents selected PRICE as their
mainmotive.

Brand Noofrespondents
HERO 31
BAJAJ 18
HONDA 42
SUZIKI 9
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HEROBAJAJHONDASUZIKITotal

INFERENCE:

TheabovetableshowsthatHONDAisthe competitorwithHEROMOTOCORPLTD.
PICKUP:

Thefollowingtableshowsthat,someofthebrandsofrespondentsselectedPICKUPastheirmain
motive.

Brand Noofrespondents
HERO 50
BAJAJ 10
HONDA 30
SUZIKI 10
Total 100

Noofrespondents
100
AxisTitle

50

HERO BAJAJ Noofrespondents

HONDA SUZIKI Total

HERO BAJAJ HONDA SUZIKI Total

Noofrespondents 50 10 30 10 100

INFERENCE:

Theabovetableshows that HEROis the best.

MILEAGE:

Thefollowingtableshowsthat,someofthebrandsofrespondentsselectedMILEAGEastheirmain
motive.

MILEAGE Noofrespondents
HERO 50
BAJAJ 10
HONDA 30
SUZIKI 10
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HEROBAJAJHONDASUZIKITotal

INFERENCE:

Theabovetableshows that HERO is the best.

RELIABILITY:

Thefollowingtableshowsthat,someofthebrandsofrespondentsselectedRELIABILITYastheirmain
motive.

Reliability Noofrespondents
HERO 35
BAJAJ 15
HONDA 30
SUZIKI 20
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HEROBAJAJHONDASUZIKITotal

INFERENCE:

Theabovetableshows that HONDA is thecompetitorwithHERO.

FEATURES:

Thefollowingtableshowsthat,someofthebrandsofrespondentsselectedFEATURESastheirmain
motive.

FEATURES Noofrespondents
HERO 35
BAJAJ 15
HONDA 30
SUZIKI 20
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HEROBAJAJHONDASUZIKITotal

INFERENCE:

Theabovetableshows that HERO is thebest.

BRANDIMAGE:

Thefollowingtableshowsthat,someofthebrandsofrespondentsselectedBRANDIMAGEistheirmain
motive

BrandImage Noofrespondents
HERO 40
BAJAJ 20
HONDA 30
SUZIKI 10
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HERO BAJAJHONDASUZIKI Total

INFERENCE:

Theabovetableshows that HERO is thebest.

Respondents:

Respondentswho wantto buytheBIKE ofaparticular brand:

Brand Noofrespondents
HERO 40
BAJAJ 15
HONDA 30
SUZIKI 15
Total 100

Noofrespondents
120

100

80

60 Noofrespondents
40

20

0
HERO BAJAJHONDASUZIKI Total

INFERENCE:

Theabovetableshows 40%of therespondents wantto buyHEROBIKES.

CHAPTER-IV
 CONCLUSION

 45%oftherespondents areHeroMotoCorpLtdcustomersand
henceitismostPreferredBIKE brand out of various brands.

 HeroMotoCorpLtd150CCisthemostpreferred modeloutofallproducts

 60% of the respondents are considering Hero MotoCorp Ltd brand

beforePurchasingthere for use.

 MostoftherespondentsaregettinginformationthroughfriendsBefo
repurchasingtheBIKE.

 Mostoftherespondents
areWantinggoodsatisfactionwithdealerServicecomparingto
otherbrands.
 Mostoftherespondentsaregivingmorepreferencetomileage.
 60%ofthe respondents areaffectingbytheirfriends and relatives.
 FINDINGS

 50%oftheHeroMotoCorpLtdcustomersarebusinesspeopleand32%ofthecustomersareprivat
e employees.
 Mostoftherespondentsbelongtothe age groupof18-50years.
 HeroMotoCorpLtd150CCisthemostpreferredmodelintheHeroMotoCorpLtdproducts.
 MostoftherespondentsgettinginformationthroughtheMediaandfriendsbeforepurchasingthe
vehicle.
 Mostof therespondentsaremotivated bytheirfriends and familymembers.
 MostoftherespondentshavegoodsatisfactionwiththeperformanceoftheirBIKEstrength.
 64%oftherespondents aresatisfied with the mileageoftheirBIKE.
 Mostof therespondents feltthat the priceis reasonable.
 Centpercentoftherespondentssatisfiedwiththeresponseofthesalesexecutiveatfirstvisit.
 60%oftheHeroMotoCorpLtdusershavegoodsatisfactionwiththeperformancegivenbthe
company.
 Mostoftherespondentsaresatisfiedwiththeresponseofthecompanytothecomplaintsgiven
bythecustomers.
 Mostof therespondentsaresatisfiedwiththefulfillment ofpromises bythecompany.
 SUGGESTIONS

 TheBIKEsrecentlyintroducedbyHeroMotoCorpLtdare
mostlyconcernedabouthomebase.So, theyshould also considercommercial people
whilemanufacturing.

 Indianmarketisapricesensitivemarket‟stheBIKEsshouldbeatMinimumpricewithmaximum
quality.

 Thestandard ofpricingshould beimproved.

 AdvertisementsinTelevisions,offers shouldbeincreasedto attractthePeople.

 IfHeroMotoCorpLtdcanimproveinPerformanceandbrandimageitwillbethebestinallthe
other competition brands.
 QUESTIONNAIRE

BUYINGMOTIVESFORTWOWHEELERS

1. NAME:

2. AGE :

18-25 25-35 35-45 Above-45

3. GENDER

Male Female

4. EDUCATION

UnderGraduateGraduate PostGraduate Professional

5. OCCUPATION

Student Business Govt.Employee PrivateEmployee

6. INCOMEPERMONTH

5000-10000 10000-20000 20000-30000

7. DOYOUHAVEOWN BIKE

Yes No

8. IFYES,WHICHBRANDYOUHAVE
 HERO BAJAJ HONDA SUZUKI

9. WHATISTHEMAINMOTIVEBEHINDPURCHASINGTHATBRAND?

Performance FEATURES Price

TRANSPORT Reliability BrandImage

10 INWHICHWAYYOUPREFEREDINBUYINGTHATPERTICULAR BRANDBIKE
?

Advertisement Referredfrom friends&Relatives

Technology FinanceSchemes‟ Offers

11. RANKTHEBIKEYOUOWNON THESEFACTORS

POOR AVERAGE GOOD VERYGOOD EXCELLENT

Performance

mileage

Features

Price

Pickup
Reliability

BrandImage

12. IFYOUDON‟TUSEBIKE,THENWHICHBRANDSYOUPREFERTOBUY?

HERO BAJAJ

HONDASUZUKI

13. WHATISTHEREASONFORSELECTINGTHATBRAND?

Performance Price Mileage

FinanceFacility BrandImage Reliability

14. INWHICHWAYYOUPREFEREDIN BUYINGTHATBRAND?

Offer Advertisement ReferredfromFriends&Relatives

Technology FinanceSchemes‟
 BIBILIOGRAPHY

S.No.AUTHOR NAME REFEREDBOOKS

1. PHILLIPKOTLER Principles of Marketing –

11thEditionPrenticeHallIndia.

2. PHILLIPKOTLAR Marketing Management –

MillenniumEdition.PrenticeHallIndi
a

3. V.S.RAMASWAMY& Marketing Management

-7thEditionNAMAKUMARI MillenniumIndiaLtd.

4. RICHARDRSTILL Sales Management

-5thEditionPrenticeHallIndia.

5. G.C.BERI Marketing Research

-6thEditionTataMcGrawHill
Co.Ltd.

6. LUCKDAVID & Marketing Research

-7thEditionROBINRONALD PrenticeHallIndia.

WEB SITES

WWW.GOOGLE.COMWWW.H
ERO
HONDA.COMWWW.GOOGELF
INANCE.COMWWW.INDUSTR
YSINDIA.COM