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Documents - Pub Research Project Report On 4th Sem of Mba
Documents - Pub Research Project Report On 4th Sem of Mba
Department of
Masters of Business Administration
Khandelwal College of Management Science and Technology
Kalapur Bareilly 252001 UP. (India)
CONTENTS
ACKNOWLEDGEMENT
COMPANY DETAILS
Hero motocorp.
1 History
o 1.1 Termination of Honda joint venture
o 1.2 Sports Association
o 1.3 Formation of Hero MotoCorp
o 1.4 49% stake in Erik Buell Racing
2 Operations
3 Motorcycles
o 3.1 Scooters
4 Company performance
5 Listings and shareholding
6 Employees
7 Awards and recognition
8 Initiatives
2. Review of Literature
2.1 Statement of Problem
2.2 Objectives
2.3 Scope of Study
2.4 Limitation
2.5 Need for the Study
2.6 Methodology of the Study
4.1 Vision
4.2 Mission
4.3 Strategy
4.4 Manufacturing
4.5 Technology
4.6 Distribution
4.7 Brand
4.8 Board of Directors
4.9 Corporate Governance
ACKNOWLEDGEMENT
I take this opportunity in expressing the fact that this project report is the
result of incredible amount of encouragement, co-operation and moral
support that I have received from others.
I would like to express my deep sense of gratitude to all the members of job
achievers, who directly or indirectly helped me during my project work.
Hero MotoCorp
Contexts
1 History
o 1.1 Termination of Honda joint venture
o 1.2 Sports Association
o 1.3 Formation of Hero MotoCorp
o 1.4 49% stake in Erik Buell Racing
2 Operations
3 Motorcycles
o 3.1 Scooters
4 Company performance
5 Listings and shareholding
6 Employees
7 Awards and recognition
8 Initiatives
Hero Honda started in 1984 as a joint venture between Hero Cycles of India
and Honda of Japan.[7] In 2010, when Honda decided to move out of the
joint venture, Hero Group bought the shares held by Honda.[8][9]
Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.[10]
In June 2012, Hero Motocorp approved a proposal to merge the investment
arm of its parent Hero Investment Pvt. Ltd. into the automaker. The
decision comes after 18 months of its split from Honda Motors.[11]
History
"Hero" is the brand name used by the Munjal brothers for their flagship
company, Hero Cycles Ltd. A joint venture between the Hero Group and
Honda Motor Company was established in 1984 as the Hero Honda Motors
Limited at Dharuhera, India. Munjal family and Honda group both owned
26% stake in the Company.
During the 1980s, the company introduced motorcycles that were popular
in India for their fuel economy and low cost. A popular advertising
campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasised
the motorcycle's fuel efficiency helped the company grow at a double-digit
pace since inception. In 2001, the company became the largest two-
wheeler manufacturing company in India and globally.[2] It maintains global
industry leadership till date.[2] The technology in the bikes of Hero
Motocorp (earlier Hero Honda) for almost 26 years (1984–2010) has come
from the Japanese counterpart Honda.[12]
In December 2010, the board of directors of the Hero Honda Group had
decided to terminate the joint venture between Hero Group of India and
Honda of Japan in a phased manner. The Hero Group would buy out the
26% stake of the Honda in JV Hero Honda.[14]
Logo of Hero Honda, as the company was known till August 2011
Under the joint venture Hero Group could not export to international
markets (except Sri Lanka and Nepal) and the termination would mean that
Hero Group can now export. Since the beginning, the Hero Group relied on
their Japanese partner Honda for the technology in their bikes. So there are
concerns that the Hero Group might not be able to sustain the performance
of the joint venture alone.[15]
The Japanese auto major will exit the joint venture through a series of
offmarket transactions by giving the Munjal family—that held a 26% stake
in the company—an additional 26%. Honda, which also has an independent
fully owned twowheeler subsidiary—Honda Motorcycle and Scooter India
(HMSI)—will exit Hero Honda at a discount and get over $1 billion for its
stake. The discount will be between 30% and 50% to the current value of
Honda's stake as per the price of the stock after the market closed on
Wednesday.[16]
As per the arrangement, it will be a two-leg deal. In the first part, the
Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-
incorporated special purpose vehicle (SPV) to buy out Honda's entire stake,
which will be backed by bridge loans. This SPV would eventually be thrown
open for private equity participation and those in the fray include Warburg
Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle
Group.[17]
Sports Association
The name of the company was changed from Hero Honda Motors Limited
to Hero MotoCorp Limited on 29 July 2011.[2] The new brand identity and
logo of Hero MotoCorp were developed by the British firm Wolff Olins.[19]
The logo was revealed on 9 August 2011 in London, to coincide with the
third test match between England and India.[19]
Hero MotoCorp can now export to Latin America, Africa and West Asia.[19]
Hero is free to use any vendor for its components instead of just Honda-
approved vendors.[19]
Operations
The company has a stated aim of achieving revenues of $10 billion and
volumes of 10 million two-wheelers by 2016–17. This in conjunction with
new countries where they can now market their two-wheelers following
the disengagement from Honda. Hero MotoCorp hopes to achieve 10 per
cent of their revenues from international markets, and they expected to
launch sales in Nigeria by end-2011 or early-2012.
Motorcycles
Sleek (Discontinued)
Street (Discontinued)
Achiever
Ambition 133, Ambition 135 (Discontinued)
CBZ, CBZ Star (Discontinued)
CBZ Xtreme, Hero New Xtreme 2014
CD 100, CD 100 SS, Hero Honda Joy, CD Dawn, CD Deluxe, CD Deluxe
(Self Start)
New HF Dawn,New HF Deluxe, HF DELUXE ECO
Glamour, Glamour F.I.
Hunk
Karizma, Karizma R, Karizma ZMR FI
Passion, Passion Plus, Passion Pro, Passion XPro, New Passion Pro TR
Splendor, Splendor+, Splendor+ (Limited Edition), SuperSplendor,
Splendor NXG, Splendor PRO, Splendor [iSmart],Splendor Pro Classic
Hero Impulse launched in 2011 after the separation of Hero and
Honda. Its India's first off-road and on road Bike.
Hero Ignitor launched in 2012
Hero HX250r
Scooters
Company performance
The company has sold over 47 million 2-wheelers since its inception in
1984 till March 2013.[2] It sold 6.07 million 2-wheelers in 2012, out of
which 5.5 million were motorcycles. Hero Motocorp sells more two
wheelers than the second, third and fourth placed two-wheeler companies
put together.[2] Its most popular bike Hero Honda Splendor sells more than
one million units per year.[23]
The equity shares of Hero Motocorp are listed on the Bombay Stock
Exchange,[25] where it is a constituent of the BSE SENSEX index,[26] and the
National Stock Exchange of India,[27] where it is a constituent of the S&P
CNX Nifty.[28]
Employees
Initiatives
During the financial year, the company spent INR 14 million on corporate
social responsibility.
1. INTRODUCTION TO THE PROJECT
Planning for the future to achieve the long-term objective is integral to the
survival and growth of every business. Strategic planning today has to take
into cognizance the rapid changes in technology, increased competitiveness
and the turbulent business environment, also with the world becoming one
big global village.
This Project has been titled “A comprehensive study Post purchase buyer
behavior and satisfaction towards Hero Motors Bikes after the split with
Honda."
To study the new market of Hero motors after the split with Honda, the
consumer response to the bike and needed improvement aria
The study would help to understand the consumer satisfaction to their
expectation.
OBJECTIVES
This study was conducted keeping the following objectives in mind.
1. To study the factors which influence the purchase of Hero two-
wheelers?
2. To know the customer level of awareness of Hero two-wheelers.
3. To know the various factors, which influence customers in
purchasing, they’re two - wheelers?
4. To find the after sales service offered by Hero MotoCorp Ltd.
5. To know the customer level of satisfaction of Hero two-wheelers with
respect to Hero MotoCorp Ltd.
6. To find the profile of Hero MotoCorp Ltd two-wheeler customers.
7. To understand two wheeler sector in India.
8. How the split with Honda has affected Hero motors.
1. The areas which were selected were limited only to Bangalore i.e., the
findings are regional and do not represent the state or country.
2. Time constraints hampered the study.
5. Even though utmost care has been taken in conducting the survey, the
findings may sometimes differ from the population.
7. The split happened 1 year before, the study not giving the long run
result of Hero Motors Bikes
The two-wheeler industry has been expanding rapidly. Gone are the
days when possessing a two-wheeler was seen as a luxury. Now days, it is
viewed as a mere necessity.
Prior, sale of two-wheelers was mainly confined to urban areas but
lately in rural areas the bicycles are being replaced by power driven two-
wheelers such as scooters, motorcycles.
Not only this, this industry has also customers ranging from all
demographic segments. It has been common sights that even school going
children are driving two-wheelers. The women customers are also
increasing due to increase in women literacy and employment.
Getting a new customer is difficult, than retaining a current customer
is a more difficult one and not only that it is estimated that the cost of
attracting a new customer is five times the cost of retaining current
customer. It requires a great deal of effort to induce satisfied customer to
switch away from their current preference. Thus, customer satisfaction is
been given top priority in today’s competitive world.
Therefore, keeping the above stated objective in mind, this study was
conducted to ascertain the customer’s satisfaction towards Hero two-
wheelers in Hero MotoCorp Ltd. In view of this, a detailed study of
customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.
Primary Data:
Secondary Data:
The Indian two-wheeler contributes the largest volume amongst all the
segments in automobile industry. Though the segment can be broadly
categorized into 3 sub-segments viz. scooters, motorcycles and mopeds;
some categories introduced in the market are a combination of two or
more segments e.g. scooters and step-thru. The market primarily
comprises five players in the two-wheelers segment with the most of the
companies having foreign collaboration with well-known Japanese firms
earlier. But most of the companies are now planning 100% subsidiaries in
India. and growth anticipated is higher than the 16 percent achieved in the
past 10 years
The automobiles sector is divided into four segments-two
wheelers(mopeds, scooters, motorcycles, electric two-wheelers), passenger
vehicles (passenger cars, utility vehicles, multi-purpose vehicles),
commercial vehicles (light and medium-heavy vehicles), and three
wheelers (passenger carriers and good carriers).
The industry is one of the key drivers of economic growth of the nation.
Since the globalization of the sector in 1991 and the subsequent opening up
of 100 percent FDI through automatic route, Indian automobile sector has
come a long way. Today, almost every global auto major has set up facilities
in the country.
The world standings for the Indian automobile sector, as per the
Confederation of Indian Industry, are as follows:
Major part of the growth in the two-wheeler industry has come from
motorcycle especially, the Indo-Japanese 100cc motorcycles, which are
considered, fuel efficient, reliable and suited for rough roads.
Scooters also growing at a fast phase and are being increasingly
perceived as a better option providing convenience and motor style, by
urban customers. In this category, TVS Scooty holds a dominant market
share.
With sales of over three million vehicles, India is the second largest
two-wheeler market in the world. Vehicle has become a necessity for day-
to-day busy life, with the accelerated industrial and business activity in a
liberalized environment. However, given the limited purchasing power and
to high cost of cars, majority of the middle class vehicle users prefer two
wheelers.
With sales of over million vehicles, India is the second largest two-
wheelers market in the world. China is the market leader with around 51
percent of the Asia Market, India, Thailand; Indonesia & Taiwan are the
other key markets for two-wheelers with market share of 19 percent, 10
percent, 9 percent and 5 percent respectively.
In the last four to five years, the two-wheeler market has witnessed a
market shift towards motorcycles at the expense of scooters. In the rural
areas, consumers have come to prefer sturdier bikes to withstand the bad
road conditions. In the process the share of motorcycle segment has grown
from 48% to 58%, the share of scooters declined drastically from 33% to
25%, while that of mopeds declined by 2% from 19% to 17% during the
year 2000-01. The Euro emission norms effective from April 2000 led to
the existing players in the two-stroke segment to install catalytic
converters. 4-stroke motorcycles are now replacing all the new models.
Excise duty on motorcycles has been reduced from 32% to 24%, resulting
in price reduction, which has aided in propelling the demand for
motorcycles. Fierce competition has also forced players to cut prices of
certain models.
Competition has intensified over the last couple of years altering the
dynamics in the motorcycle segment with various companies planning to
cash in on this spurt in demand by calling off their JVs like Suzuki Motors
planning to break off with TVS. Recently, Honda Corporation of Japan
announced its intentions to set up a 100% subsidiary to manufacture
scooters and motorcycles. Other players in the two-wheeler industry
include Bajaj Auto Ltd., Kinetic Motor Co.Ltd. LML and Escorts Yamaha.
Low interest regime has helped in reducing cost of loans, which will help in
boosting sales of 2-wheelers, since 80% of the two-wheelers are credit –
stimulated.
GROWTH OF MOTORCYCLES
NEW SEGMENTS
Among the majors in the two-wheeler industry, first quarter figure for the
current year of some players has been encouraging. The company sold
313,303 units last month as compared to 325,360 units in the same month
last year. With this, BAL has recorded as 87 percent growth in the
motorcycle segment in the first quarter with sales of 130,577 units (93,631
units in the corresponding period last year) BAL estimates market share of
the first quarter-Geared scooters 75.9%, unguarded scooters- 16.5%, Step-
thrus-72.3% and motorcycle-20.5%.
In the scooters segment, sales of Bajaj Sunny and Bajaj Spirit
increased by 170 percent to 7,876 units. First quarter sales registered an
impressive 78 percent growth with sales of 19,562 (10,995 units). The
overall sales grew by 9.3 percent in the quarter when the company sold
3.24 lakh vehicles.
BAL however reported a decline in sales of scooters by 15.6 percent
in the first quarter. The company hopes to increase the share of motorcycle
in its product basket from 18 percent last year to 30 percent by 2003 -04.
The current year therefore promises to be a testing time for the two-
wheeler industry. Industry pundits feel that an overall growth rate of 5
percent should be possible as against 9 percent projected earlier. The sales
volume therefore is expected to be around 3.8 million in 2000-2001.
DRAMATIC CHANGES:
Hero MotoCorp is now world’s largest manufacturer of two-wheelers. The
company has benefited from the demand shift to motorcycles, as it focuses
solely on this product segment (although has a product called Pleasure in
Scooter segment). With fuel efficiency and riding comfort as the main
selling points, HMC has been able to address a wide market and post robust
sales growth even after its separation from the Japanese major Honda.
The coming years will see increasing competition due to the parity in
products and price. The only differentiators will be technology, quality,
product range and service. Imaginative marketing will emphasize
relationship building, customer satisfaction and relationship. All is
exploring new techniques such as direct marketing and institutional sales.
Some of them are taking the vehicle actually to the customer’s doorstep.
Now the customer is the king.
HISTORICAL DEVELOPMENT OF TWO WHEELER INDUSTRY
The reasons for recession in the sector were the incessant rise in fuel
price, high input costs and reduced purchasing power due to significant
rise in general price level and credit crunch in consumer financing. Factors
as if increased production in 1992, due to new entrants coupled with the
recession in the industry resulted in either company reporting losses or fail
in profits.India is one of the very few countries manufacturing three
wheelers in the world. It is the world’s largest manufacturer and seller of
three wheelers. Bajaj Auto commands a monopoly in the domestic market
with a market share of above 80%; Bajaj Tempo, Greaves Ltd and Scooters
in India share the rest.
The total number of registered two-wheelers and three-wheelers on
road in India, as on March 1998 was 27.9nm and 1 .7nin respectively. The
two-wheeler population has almost doubled in 1996 from a base of 12.6mn
in 1990.
PENETRATION OF TWO-WHEELERS:
On a base of around 28mn vehicles on Indian roads and around
175mn households, there were only 160 motorized two-wheelers per
thousand households in FY98. This compares poorly with countries like
Thailand where it is around 600 per thousand households. Also with a
household size of 5.5 persons and more than one wage earner in about
60% of the households, the potential for a second vehicle demand is also
good.
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-
wheeler manufacturing company in India and also, the 'World No.1' two-
wheeler company in terms of unit volume sales in a calendar year. Hero
MotoCorp Ltd. continues to maintain this position till date.
HeroMotoCorp is now world’s largest manufacturer of two-wheelers. The
company has benefited from the demand shift to motorcycles, as it focuses
solely on this product segment (although has a product called Pleasure in
Scooter segment). With fuel efficiency and riding comfort as the main
selling points, HMC has been able to address a wide market and post robust
sales growth even after its separation from the Japanese major Honda.
VISION
The story began with a simple vision – the vision of a mobile and an
empowered India, powered by its bikes. Hero MotoCorp Ltd., company’s
new identity, reflects its commitment towards providing world class
mobility solutions with renewed focus on expanding company’s footprint in
the global arena.
MISSION
Hero MotoCorp's mission is to become a global enterprise fulfilling its
customers' needs and aspirations for mobility, setting benchmarks in
technology, styling and quality so that it converts its customers into its
brand advocates. The company will provide an engaging environment for
its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners.
STRATEGY
Hero MotoCorp's key strategies are to build a robust product portfolio
across categories, explore growth opportunities globally, continuously
improve its operational efficiency, aggressively expand its reach to
customers, continue to invest in brand building activities and ensure
customer and shareholder delight.
MANUFACTURING
Hero MotoCorp. two wheelers are manufactured across three globally
benchmarked manufacturing facilities. Two of these are based at Gurgaon
and Dharuhera which are located in the state of Haryana in northern India.
The third and the latest manufacturing plant are based at Haridwar, in the
hill state of Uttrakhand.
TECHNOLOGY
In the 1980's the Company pioneered the introduction of fuel-efficient,
environment friendly four-stroke motorcycles in the country. 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.
Its plants use world class equipment and processes and have become a
benchmark in leanness and productivity.
Hero MotoCorp, in its endeavor to remain a pioneer in technology, will
continue to innovate and develop cutting edge products and processes
DISTRIBUTION
The Company's growth in the two wheeler market in India is the result of
an intrinsic ability to increase reach in new geographies and growth
markets. Hero MotoCorp's extensive sales and service network now spans
over to 5000 customer touch points. These comprise a mix of authorized
dealerships, service & spare parts outlets and dealer-appointed outlets
across the country.
Zonal Offices
East Zone
Hero MotoCorp Ltd
3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata -
700017, India.
Tel: +91-33-22810926 22810927, 22808922, 22811185
Fax: +91-33-22808923
Email: kolkata@heromotocorp.com
West Zone
Hero MotoCorp Ltd.
15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road,
Wakadewali, Pune - 411 003, India.
Tel: +91-20-25511577, 25512161, 56012990-91
Fax: +91-20-25511266
Email: pune@heromotocorp.com
North Zone
Hero MotoCorp Ltd.
F-126, Katwaria Sarai, Opp. Qutab Institutional Area,
New Delhi -110016, India.
Tel: +91-11-26533981-2, 47619300
Fax: +91-11-26533983
Email: delhi@heromotocorp.com
South Zone
Hero MotoCorp Ltd.
No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage,
Indira Nagar, Bangalore – 560038, India.
Tel: +91-80-25550430, 25584436, 25582436, 25321139
Fax: +91-80-25594036
Email: bangalore@heromotocorp.com
GRADING POSITIVES
GRADING SENSITIVITIES
1987
- 100,000th motorcycle produced1989New motorcycle model -
"Sleek" introduced
1991
- New motorcycle model - "CD 100 SS" introduced
- 500,000th motorcycle produced
1992
- Raman Munjal Vidya Mandir inaugurated - A School in the
memory of founder Managing Director, Mr. Raman Kant Munjal
1994
- New motorcycle model - "Splendor" introduced
- 1,000,000th motorcycle produced
1997
- New motorcycle model - "Street" introduced
- Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998
- 2,000,000th motorcycle produced
1999
- New motorcycle model - "CBZ" introduced
- Environment Management System of Dharuhera Plant certified
with ISO-14001 by DNV Holland
- Raman Munjal Memorial Hospital inaugurated - A Hospital in
the memory of founder Managing Director, Mr. Raman Kant
Munjal
2000
- 4,000,000th motorcycle produced
- Environment Management System of Gurgaon Plant certified
ISO-14001 by DNV Holland
- Splendor declared 'World No. 1' - largest selling single two-
wheeler model
- "Hero Honda Passport Programme" - CRM Programme
launched
2001
- New motorcycle model - "Passion" introduced
- One million production in one single year
- New motorcycle model - "Joy" introduced
- 5,000,000th motorcycle produced
2002
- New motorcycle model - "Dawn" introduced
- New motorcycle model - "Ambition" introduced
- Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,
Harbhajan Singh and Zaheer Khan as Brand Ambassadors
2003
- Becomes the first Indian Company to cross the cumulative 7
million sales mark
- Splendor has emerged as the World's largest selling model for
the third calendar year in a row (2000, 2001, 2002)
- New motorcycle model - "CD Dawn" introduced
- New motorcycle model - "Splendor +" introduced
- New motorcycle model - "Passion Plus" introduced
- New motorcycle model - "Karizma" introduced
2004
- New motorcycle model - "Ambition 135" introduced
- Hero Honda became the World No. 1 Company for the third
consecutive year.
- Crossed sales of over 2 million units in a single year, a global
record.
- Splendor - World's largest selling motorcycle crossed the 5
million mark
- New motorcycle model - "CBZ*" introduced
- Joint Technical Agreement renewed
- Total sales crossed a record of 10 million motorcycles
2005
- Hero Honda is the World No. 1 for the 4th year in a row
- New motorcycle model - "Super Splendor" introduced
- New motorcycle model - "CD Deluxe" introduced
- New motorcycle model - "Glamour" introduced
- New motorcycle model - "Achiever" introduced
- First Scooter model from Hero Honda - "Pleasure" introduced
2006
- Hero Honda is the World No. 1 for the 5th year in a row
- 15 million production milestone achieved
2007
- Hero Honda is the World No. 1 for the 6th year in a row
- New 'Splendor NXG' launched
- New 'CD Deluxe' launched
- New 'Passion Plus' launched
- New motorcycle model 'Hunk' launched
- 20 million production milestone achieved
2008
- Hero Honda Haridwar Plant inauguration
- New 'Pleasure' launched
- Splendor NXG lauched with power start feature
- New motorcycle model 'Passion Pro' launched
- New 'CBZ Xtreme' launched
- 25 million production milestone achieved
- CD Deluxe lauched with power start feature
- New 'Glamour' launched
- New 'Glamour Fi' launched
2009
- Hero Honda GoodLife Program launched Hunk' (Limited
Edition) launched
- Splendor completed 11 million production landmark
- New motorcycle model 'Karizma - ZMR' launched
- Silver jubilee celebrations
2010
- New model Splendor Pro launched
- Launch of new Super Splendor and New Hunk
2011
- New licensing arrangement signed between Hero and
Honda (Hero Honda is renamed as Hero)
- Launch of new refreshed versions of Glamour, Glamour Fi, CBZ
Xtreme, Karizma
- Crosses the landmark figure of 5 million cumulative sales in a
single year
2012
Sales figures
OEM F12 F11 Growth
(%)
1 Hero Moto corp 6235205 5402444 15.41
2 Bajaj 3834405 3387043 13.21
3 TVS 2158375 2006808 7.55
4 Honda (scooters) 1240771 907832 36.67
5 Honda (Motorcycle) 866457 748895 15.70
6 Hero – HMSI 2107228 1656727 27.19
5 Yamaha 484891 373100 29.96
7 Suzuki 340893 282156 20.82
8 Mahindra 134750 163935 -17.80
• Profile of target customer
Hero MotoCorp basically targets the every each and segments of the
market. So there are some products like splendor, CD- dawn (rs40000-
50000) they made for lower segment of the market and glamour, passion,
CBZ, karizma (rs above 50000) for the upper segment of the market. And
now they are trying to target the young people of the market.
India’s Hero MotoCorp, the world’s largest producer of motorcycles and
scooters, has announced its intention to expand globally, with plans to sell
vehicles on three continents and nearly double its unit sales within five
years. The company, whose family shareholders bought out its former
partner Honda Motor this year, said it would invest about $1bn to expand
internationally in south-east Asia, Africa, and Central and Latin America.
100cc
Bike category
SPLENDOR PLUS
SPLENDOR NXG
SPLENDOR PRO
PASSION PRO
PASSION XPRO
MAESTRO
PLEASURE
HF DAWN
HF DELUXE
125cc
Bike category
GLAMOUR
SUPER SPLENDOR
IGNITOR
Glamour PGM FI
150cc
Bike category
ACHIEVER
KARIZMA
KARIZMA ZMR
IMPULSE
HUNK
XTREME
Termination of Honda joint venture
In December 2010, the board of directors of the Hero Honda Group has
decided to terminate the joint venture between Hero Group of India and
Honda of Japan in a phased manner. The Hero Group would buy out the
26% stake of the Honda in JV Hero Honda. Under the joint venture Hero
Group could not export to international markets (except Sri Lanka) and the
termination would mean that Hero Group can now export. Since the
beginning, the Hero Group relied on their Japanese partner Honda for the
technology in their bikes. So there are concerns that the Hero Group might
not be able to sustain the performance of the Joint Venture alone.
The Japanese auto major will exit the joint venture through a series of off
market transactions by giving the Munjal family—that held a 26% stake in
the company—an additional 26%. Honda, which also has an independent
fully owned two wheeler subsidiary—Honda Motorcycle and Scooter India
(HMSI)—will exit Hero Honda at a discount and get over $1 billion for its
stake. The discount will be between 30% and 50% to the current value of
Honda's stake as per the price of the stock after the market closed on
Wednesday.
As per the arrangement, it will be a two-leg deal. In the first part, the
Munjal family, led by Brijmohan Lal Munjal group, will form an overseas-
incorporated special purpose vehicle (SPV) to buy out Honda's entire stake,
which will be backed by bridge loans. This SPV would eventually be thrown
open for private equity participation and those in the fray include Warburg
Pincus, Kohlberg Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle
Group.
Honda will continue to provide technology to Hero Honda motorbikes until
2014 for existing as well as future models.
4. DATA ANALYSIS AND INTEPRETATION
Table- 4.1 Showing type of Hero two wheeler models owned
Number No. of
Name of Hero two wheeler
respondents
1 SPLENDOR PLUS 25
2 SPLENDOR PRO 10
3 PASSION PRO 30
4 HUNK 2
5 GLAMOUR 3
6 KARIZMA ZMR 2
7 KARIZMA 1
8 MAESTRO 3
9 SUPER SPLENDOR 2
10 SPLENDOR NXG 5
11 PLEASURE 6
12 HF DAWN 1
13 PASSION XPRO 9
14 IMPULSE 1
Total 100
IMPULSE
1%
HF DAWN
1% PASSION XPRO
9%
PLEASURE
SPLENDOR PLUS
6%
25%
SUPER
SPLENDOR SPLENDOR NXG
2% 5%
MAESTRO
KARIZMA 3%
1%
KARIZMA ZMR 2% SPLENDOR PRO
10%
GLAMOUR
3% HUNK
2%
PASSION PRO
30%
9%
20%
14%
57%
Table- 4.3 showing the influenced people for buying Hero
Family 34
Myself 16
Friend 35
Sales representative 15
Total 100
Inference: -
From the above table it is observed that, the buying behavior people
mostly influenced by family and friends the other factor is have less level of
influence. The people how using bike mostly youth & middle class people
and they are influenced by their friends and family respectively. The above
table showing that 35% of people influenced by their friends 34% people
through family 16% people is buying on their need. 15% because of sales
representative
Chart 4.3 showing the number people influenced for buying
40
35
30
25
20
15
10
0
family Myself friend Sales representative
125cc 28 Red 24
150cc 35 Black 39
200cc 20 Other 14
40
35
30
25
20
15
10
0
100 cc 125cc 150cc 200cc
45
40
35
30
25
20
15
10
5
Blue Red Black Other
0
Table- 4.5 showing the responses on Vehicle delivery time
NO (not on time) 22
Total 100
Inference: -
From the above table it is observed that,
78% of respondents got delivery of their vehicle on time
22% says that the delivery of vehicle got delay
After enquire about the 22% it’s showing that they asked for very
demand vehicle like PASSION & SPLENDOR bikes and some of them
ask new bike like Maestro
Chart 4.5 showing the responses on Vehicle delivery time
No
22%
Yes
78%
Yes 92
NO 8
Total 100
Inference:
From the above table it is observed that, 92% of respondents got test
drive during their showroom visit, other 8% didn’t got because of two
reason some of them ask the bike that not showcase in showrooms and
some of them gone small showrooms
Yes
No
Excellent 16
Good 23
Moderate 21
Satisfactory 39
unsatisfactory 1
Total 100
Inference: -
The above table shows how the customer rate the reliability of Hero
bike, it is observed that 16% of them telling its excellent 23% respond
that its good and 21% have moderate opinion 39% is satisfied with the
performance and 1 of the respondent is not satisfied with the Hero
bike.
45
40
35
30
Excellent
25
Good Moderate Satisfactory
unsatisfactory
20
15
10
0
Table- 4.8 showing level of Service Satisfaction
Completely satisfied 34
satisfied 39
dissatisfied 12
Total 100
Inference:-
The above table shows the satisfaction towards Hero bike on the time of
Service 34% of respondents are completely satisfied with the service
provide by the company and 39% customers are satisfied and 12%
dissatisfied, 15% is not at all satisfied with the service provide by the
company the following chart shows it more clearly
Chart 4.8 showing level of Service Satisfaction
40
35
Completely satisfied
30
satisfied
25
20
dissatisfied
15
No
26%
Yes
74%
Quality 25 25%
Price 20 20%
INTERPRETATION:
From the above table we can infer that 25% of the respondents gave
preference to quality, 20% of respondents gave preference to price, 24% of
respondents gave preference to brand image and 31% of the respondents
gave preference to fuel efficiency.
From the above findings, we can analyze that 69% of respondents were
more quality conscious and only 31% respondents gave preference to price
and fuel efficiency.
The reasons are even though people are price conscious to some extent; the
consumers are more quality conscious than price conscious because they
have enough income to buy two-wheeler.
Chart 4.10 showing the reason for preference
35
30
25
20
15
10
0
Quality Price Brand Image Fuel efficiency
Table - 4.11 showing how long customer using hero two wheelers
Chart 4.11 showing how long customer using hero two wheelers
0 5 10 15 20 25 30 35
Inference:-
From the above table it is observed that, what is customer need that Hero
wants to improve, 31% need improvement in service in time, 16% in
reliable service, and 27% need well trained mechanics, 26% less labor
charge.
Chart Title
35
30
25
20 Service in time
Reliable service
10
0
Category 1
Table - 4.13 showing the problems face at the time of service
Inference:-
From the above table it is observed that, the customers are facing deferent
problems at the time of service, 29% face high price of spare parts, 14%
face low quality of spare parts, 29% face delay in service, 28% respondents
they didn’t face any problem.
Chart 4.13 showing the problems face at the time of service
Low quality of
Delay in service spare parts 14%
29%
Chart Title
40
35
30
25 Very good
Good
20
Average
Bad
15
Very Bad
10
0
Response
Table - 4.15 showing the good thing associate with your brand
Inference:-
From the above table it is observed that, what the customer feel that make
Hero deferent from other bike, 16% like the solid engineering, 25% says
innovative features is good about Hero MotoCorp , 21% respond that Hero
giving the value of money, 29% brought because of consistent mileage of
Hero,9% like after sale service of Hero MotoCorp Ltd.
Chart 4.15 showing the good thing associate with your brand
9%
16%
29%
25%
21%
No
18%
Yes
82%
SUMMARY OF FINDINGS
1. The Hero MotoCorp is leading the market. The difference is too big to
cope up with, for any manufacturer in short span. With proven
products and many people having faith in brand, it is quite a difficult
task for others to take the Hero’s number one position.
2. Hero MotoCorp India’s no. 1 two wheeler companies have posted
growth of 11.28% in the month of May 2012 compared to May 2011.
3. Ability to understand customer’s needs and wants, maintenance cost
is low.
4. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp
selling a big number
5. The TV promotions are more influence the customer behavior of two
wheeler sector.
6. The purchase desiccations of consumers are influence by friends and
family.
7. Blue, Red, Black color bike with 150 cc to 200cc is fast moving.
8. Most of the despondences are agree that the bikes are delivering
proper time.
9. The service provide by Hero MotoCorp is satisfied by more than
70% of customers.
10. Brand name of Hero is still good in
market after split with Honda, 74% of people like the brand “HERO"
11. Quality, price, Brand image, Fuel
efficiency is getting equal importance in satisfaction
12. The research showing that
consumer want to get more service satisfaction.
13. 82% of the customer likes to
recommend Hero two wheeler to their friends, its shows they are
satisfied with the bike.