Hero Final Frp.docx

SUMMER INTERNSHIP REPORT ON “CUSTOMER SATISFACTION TOWARDS HERO MOTO CORP” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE BACHELORS DEGREE IN BUSINESS ADMINISTRATION OF

HNB GARHWAL UNIVERSITY, DEHRADUN SUBMITTED TO

SUBMITTED BY

MR. ADIL ZAIDI

TRIBHUWAN GUPTA BBA IVTH SEM

BEEHIVE COLLEGE OF ADVANCE STUDIES DEHRADUN Batch 2016-2019 1

ACKNOWLEDGEMENT

This report has been made possible with the cooperation of many persons whom I wish to express my gratitude and appreciation. I am very grateful to the people who supported me to transform the report in the materialistic form.

I am thankful to MR. ADIL ZAIDI at BCAS, Dehradun for his gratitude during my project and giving me full co-operation and also valuable information and guidance, without which it would not be possible for me to complete the manuscript.

I would also like to thanks the librarian and staff members of BCAS, Dehradun for providing me the required books in this field and my friends who were always there to assist me at odd hours also.

TRIBHUWAN GUPTA

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DECLARATION

I declare that the dissertation “CUSTOMER SATISFACTION TOWARDS HERO MOTO CORP” is a record of independent research work carried out by me during the academic year 2016-19 under the guidance of my faculty guide of BCAS, Dehradun. I also declare that this dissertation is the result of my effort and has not been submitted to any other University or Institution for the award of any degree, or personal favor whatsoever. All the details and analysis provided in the report hold true to the best of my knowledge.

MR. ADIL ZAIDI

TRIBHUWAN GUPTA

SIGNATURE OF GUIDE

BBA IVTH SEM

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CONTENTS CHAPTER-1  INTRODUCTION OF TOPIC  COMPANY PROFILE

CHAPTER 2 REVIEW OF LITERATURE

CHAPTER 3 RESEARCH METHODOLOGY

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION

CHAPTER 5 FINDINGS CONCLUSION SUGGESTIONS

BIBLIOGRAPHY ANNEXURE 4

CHAPTER :1 INTRODUCTION

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Marketing starts with identifying the needs of customers and ends in satisfying those wants. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction based on their preferences retaining them. As the customers are regarded as the superiors in today’s market, the level of satisfaction and their preferences should be keenly studied. 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 driventwo-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 will be 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 will be undertaken.

The Dissertationis all about measuring the customer satisfaction in Hero Motors. Every company is trying to satisfy its customers. The emphasis is on ways of retaining customers, then on attracting new customers. It is easy to attract new customers then to retain old customers. So, companies are trying to focus on this aspect of customer’s satisfaction. The sale of a product does not end with the sale transaction but it is the point at which the original marketing concept starts. The marketer has to see that whether the customer satisfied with that particular product/service or not. The post purchase behavior is important for a marketer. If there is any cognitive dissonance in the minds of the customers then that is enough to lose a customer. Keeping this in mind the companies are giving more importance to customer satisfaction.

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This project work has been done to find out whether a customer is satisfied or dissatisfied, also to measure the level of the customer satisfaction and provide this feedback to the company. The first phase of the project involves the collection of information from the customers for interpreting the characteristics based on which the customer feels satisfied or dissatisfied. This information is collected by preparing a structured questionnaire. The questionnaire consists of both open-ended and closed-ended questions. The questionnaire is designed in such a way that a customer feels convenient to answer. The collated information through the questionnaire is analyzed and presented in a statistical form. The findings are listed and suggestions to solve problems faced have been given in the suggestion part.

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INTRODUCTION TO CUSTOMER SATISFACTION Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyer expectation. In general satisfaction are a person’s feelings of pleasure or disappointment resulting from comparing a products perceived performance relation to his/her expectations. If the performance falls short of expectation, the customer is dissatisfied. If the performance matches the expectation customer is satisfied. If the performance exceeds the expectation the customer is highly satisfied.

Customer satisfaction cannot be very difficult. After all you either satisfied with the services you receive or you are not. If you don’t you are not. If it is that easy, then obtaining people's opinion about how satisfied they are with relatively straight forward matter- or is it? Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers. It looks at what is involved from 3 different angles, the first is from the view of an organization wishing to understand, and measures, how satisfied its customer are with the products and services they receive from it. The second is from the perspective of a research agency that has been asked to obtain feedback from customers and about their experiences when dealing with companies. Finally it considers the issue from the perspective of consumers who participate in surveys, including both business customers and members of general public

MEANING OF CUSTOMER SATISFACTION Customer satisfaction is a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and part of the four prospective of balanced score card. In a competitive market place were businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy customer satisfaction drives successful private sector business. High performing businesses have developed principles and strategies for achieving customer satisfaction. This paper presents a framework or set of ideas for using 8

customersatisfaction principles and strategies to improve the quality responsiveness, and possibility of public sector privately provided services in vulnerable communities The framework suggested that resident who live in tough neighborhoods can be supported through customer satisfaction strategies to become empowered individuals who informed perspectives influence decisions about what, how, when, and where services are available to them. Customer satisfaction is the customer’s response to the evaluation of the perceived discrepancy between prior expectation and the actual performance of the product as perceived after its consumption.

DEFINITION Cocotte, woodruff and Jenkins (1987) define customer satisfaction as "conceptualized as a feeling developed from an evaluation of the experience." HERE, the timing of satisfaction response is driving consumption. BUT there is general agreement with kotler (2003) that "customer satisfaction is a person's feeling of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation." In short customer satisfaction is "The provision of goods or services which fulfill the customer expectation in terms of quality and service, in relation to price paid." IMPORTANCE OF CUSTOMER SATISFACTION It costs at least 7 times more to source a new customer than it does to retain existing onea 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied' customer will tell 1415 people. 

Companies can boost profits anywhere from 25% to 125% by retaining a mere 5% more of their exciting customers.



Totally satisfied customers were 6 times more likely to use that services and commend it than ' satisfied' customers.



Customers who have a bad experience with you and do not complain are only 37% likely to still do business with you. 9



Customers who have an opportunity to complain and the complaint is achieved are 95% likely to still do business with you.

FACTORS OF CUSTOMER SATISFACTION 1. Service of quality 2. reliability of service 3. knowledge of the staff 4. Being kept informed of progress 5. The way service kept its promises 6. The way the service handled any problem Friendliness of staff 7. How sympathetic staff were to your needs 8. Speed of enquiries 9. Number of time had to contact the service.

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INDUSTRY PROFILE

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INDUSTRY PROFILE 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:  Largest three-wheeler market  Second largest tow-wheeler market  Tenth largest passenger car market  Fourth largest tractor market  Fifth largest commercial vehicle market  Fifth largest bus and truck segment The sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with a 10 percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow rural income growth. Solid but cautious growth is expected over the next few years. However, from a long-term perspective, rising incomes, improved affordability and untapped markets present promising opportunities for automobile

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manufactures in India. According to Macquarie equities research, sale of passenger vehicles is expected to double in the next four years

Two Wheeler & its role in Indian Context: As the cities grow & suburbs expand, transportation needs becoming more & more acute, with mounting pressure on its public transportation for which two wheelers are ideal. The two-wheeler Industry today has a significant role in the Indian economy, with an annual turnover of Rs. 9000 crores and compounded average growth of 10%. In recent years, it is of the few industrial sectors in the growth phase today considers personal transportation as one of the basic needs. The two-wheeler industry basically comprises mopeds, scooters, scooters and motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups, offering company. This category dominated by TVS SUZUKI, which has a market share of 50% today. The other major players in this segment include KINETIC ENGG., HERO MOTORS and BAJAJ AUTO. Scooters, which found largest segment in the industry (37 percent) is dominated by BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and technology to the Indian customers. However, dominance of this category has been declining because of shift in the customer preferences. 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

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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 twowheelers are credit –stimulated. The two-wheeler industry is passing through a critical but interesting phase. For many years, it was growing continuously but the turning point came in 1996=97 when it started slowing down. The impact was really (MI) felt in the next year when the overall growth was hardly two percent. This was also possible only because the motorcycle segment showed a healthy growth of 15 percent. The scooter segment went down by 3 percent and mopeds by 6 percent.

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Another highlight is that the motorcycle sales have surpassedthe scooter sales for the first time in 1998-99. Until then, motorcycle sales were always trailing behind. The net result is that motorcycles now account for 41 percent of the two-wheeler market, while scooters account for 36 percent. Mopeds have been able to hold their own at about 21 percent.

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COMPANY PROFILE

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COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India. In India, it has a market share of about 46% share in 2wheeler category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. On 31 March 2013, the market capitalisation of the company was INR 308 billion (USD 5.66 billion) Hero Honda started in 1984 as a joint venture with Hero Cycles of India and Honda of Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity.

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.

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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

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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. Supply chain management As the Company prepares to produce a wider range of products, efforts are being taken to align the supply chain and prime up its supplier base. During the year, the Company kickstarted the process of migrating its existing brands to the new brand. The exercise is expected to be completed during 2012-13. During the year, the Company also commenced the process of working with its vendors to develop new parts. The Company’s Supply Chain Management function is built on three planks: 

Cost



Quality



Sustainability

Tracking inventory cost effectively and efficiently is known to be a key source of competitive advantage in the automobile industry. Hence, it comes as no surprise that cost leadership is the Company’s prime focus area. Continual pressure on margins forced the Company and its supply chain partners to find innovative and alternate ways to combat inflation. Considerable attention was given to managing component inventory in the system, with double-digit growth in inventory turnover. To align HR processes with the supply chain, top two HR consulting firms in India are working with supply chain partners. The exercise is aimed at improving robustness of people processes and resulting in a direct impact on quality, cost, productivity, delivery and reliability. The move will enable supply chain partners move to the next orbit of operational excellence. The Company initiated more than 30 quality improvement projects with supply chain partners to provide better quality products to customers.

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BRAND The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives, utilizing every opportunity and leveraging its strong presence across sports, entertainment and ground- level activation. Marketing mix of Hero Motors: Products: 

CD 100



Passion



CD 100 SS



CBZ



Splendor



Achiever



Splendor +



Passion Plus



Impulse



Karizma



Street



Pleasure



Glamour

Hero motors are known for its quality and advanced technology, satisfying the needs of the customers both in urban and rural areas. Place: Hero Motors concentrates not only on urban areas, it targets rural areas as well. It has its showrooms in almost every town in the country, making the two wheelers available everywhere in the country. Price: The pricing strategy of the Hero two wheelers is economical and value for money, they were very reasonably priced .

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PROMOTION: The promotional strategy of Hero Motors is sponsoring lot of national and international events and endorsed by the well knows personalities of the country. They sponsor the events like cricket world cups. Segmentation, Targeting and Positioning of Hero Moto Corp 1. Introduction to Two Wheeler Bikes A motorcycle (also called a motorbike, bike) is a two wheeled motor vehicle. Motorcycles vary considerably depending on the task they are designed for, such as long distance travel, navigating congested

urban

traffic, cruising, sport and racing,

or off-road conditions.

Motorcycles are one of the most affordable forms of motorized transport in many parts of the world and, for most of the world's population, they are also the most common type of motor vehicle. There

are

around

200

million

motorcycles

(including mopeds, motor

scooters, motorized bicycles, and other powered two and three-wheelers) in use worldwide, or about 33 motorcycles per 1000 people. India, is the second largest producer of two-wheelers in the world. In the last few years, the Indian two-wheeler industry has seen spectacular growth. The country stands next to China and Japan in terms of production and sales respectively. Majority of Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite among the youth generation, as they help in easy commutation. The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The motorcycle market share is about 81.5% of the total two wheeler market in India. Threefourths of the total exports in the two wheeler automobile industry are made in the motorcycle segment.

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Segmentation, Targeting and Positioning Related to Bikes

A market segment consists of a group of customers who share a similar set of needs and wants. The major segmentation variables—geographic, demographic, psychographic, and behavioral segmentation. 

Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)



Demographic Segmentation(age, family size, gender, income, family life cycle, occupation, religion)



Psychographic segmentation (lifestyle, personality)



Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status, attitude towards product)

For bikes, demographic segmentation plays an important role. Bikes cater to a particular age group, gender and/or income group. Depending upon the segment, the features of the bike varies. Hence, marketers should have a good knowledge about what features to add on as per the segment they want to cater to.

Market Targeting

Once the firm has identified its market-segment opportunities, it has to decide how many and which ones to target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups. In evaluating different market segments, the firm must look at two factors: the segment's overall attractiveness and the company's objectives and resources. After evaluating different segments, the company can consider five patterns of target market selection. 

Single – segment concentration:Through concentrated marketing, the firm gains a strong knowledge of the segment's needs and achieves a strong market presence.



Selective specialization:A firm selects a number of segments, each objectively attractive and appropriate.

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

Product specialization: The firm makes a certain product that it sells to several different market segments.



Market specialization: The firm concentrates on serving many needs of a particular customer group.



Full market coverage:The firm attempts to serve all customer groups with all the products they might need.

Manufacturers of bikes need to be very precise while selecting their target market. They should understand the consumer’s demand and then accordingly place their product. The product’s features should satisfy its target customers and should be at per with the value it promises to its target customers.

Market Positioning Positioning is the act of designing company’s offering and image to occupy a distinctive place in the mind of a target market. The end result of positioning is value proposition, a cogent reason why the target market should buy the product.[4] Positioning in market is very important as well as difficult. It’s making the consumers aware of your product. Each bike must have a unique selling point which needs to be well portrayed in consumer’s mind so that he has an additional choice in his mind.

Competiting Bike’s Brands The brands that I have chosen are: 

Hero MotoCorp Ltd.



Yamaha Motor Company Limited



Bajaj Auto Ltd.



TVS Motor Company



HMSI

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Hero MotoCorp Ltd Hero MotoCorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. In 2010, When Honda decided to move out of the joint venture,[7] Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. Product range of Hero MotoCorp are:[5] 

CD 100



Passion



CD 100 SS



CBZ



Splendor



Achiever



Splendor +



Passion Plus



Impulse



Karizma



Street



Pleasure



Glamour

Market Segmentation

Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income and age. It caters to youth of all income groups. Its highest selling bike Splendor is a favorite in sub urban and rural India. It potrays itself as the most efficient bike range to cater to Indian Roads.

Target Market Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to Rs 95, 000. Each product has multiple optional features. The USP that it uses are: strong, sturdy and powerful, greater mileage, low maintenance cost, safe to ride, ease and comfort.

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Its target market includes lower middle class consumer to upper middle class consumer. It is affordable, available and acceptable by all.

Positioning Strategy Fill it. Shut it. Forget it Campaign This campaign focused on the mileage of Hero bikes. It says that once you fill oil in the bike’s tank, you are tension free. Due to its higher mileage, you can travel as much as you want without bothering to refill oil. Dhakdhak go Advertisement campaign Dhakdhak refers to the heart beat. Therefore this campaign showed that if you are riding a Hero bike you are listening to your heart. This campaign connects emotionally to the consumer as it shows the connection of bikes to the heart of every Indian. DeshkiDharkan Advertisement Campaign Deshkidharkan refers to the heart beat of the country. It symbolizes that all people in India are emotionally attached to their country. Even though there are a lot of cultural differences but the entire country stands as one. This campaign places Hero bikes as the heart beat of the entire nation uniting everyone as a nation. Event sponsorships Event sponsorships of various cricket matches is a positioning strategy as cricket has a huge fan base in India. It positions itself as a strong, reliable, affordable and greater mileage bikes. Celebrity endorsements Various celebrity endorsements are used as their positioning technique. SauravGanguly, when he wascaptain of Indian Cricket team was

their brand ambassador along with

HritikRoshan. Both thesepersonalities are unique in their fields. SauravGangulywas the face of Indian cricket. People worshiped him.So, through SauravGaunguly, Heropotrayed itself as the heart beat of the country. Iconic figure HritikRoshan is known for his youth and physique. So through him Hero tried to lure the youth.

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Hum me hai hero campaign This is the recent advertisement of Hero MotoCorp. This advertisement tries to prove that we all are born super starts. We just need to focus and believe in ourselves. There is nothing impossible in this world and there is nothing that can’t be achieved. Through perseverance we can reach great heights and achieve whatever we want. We just need to believe firmly that we are a hero. Conclusion Hero MotoCorp is the biggest two wheeler manufacturer in the world. It has the highest market share in India. It has successfully delivering its promise to its target customers. The aggressive market positioning strategy that it uses places it way above its competitors. It relates itself to every Indian. It is a bike for the Indian consumers satisfying all their needs. Directors Founder Director and Chairman

:

Dr. Brijmohan Lall Munjal

Managing Director and CEO

:

Mr. Pawan Munjal

.

Board of Directors Name of the person

Nature of the Office

Mr. Sunil Kant Munjal

Non Executive Director

Mr. Suman Kant Munjal

Director

Mr. Paul Edgerley

Non Executive Director

Mr. PradeepDinodia

Director

Gen. (Retd.) V. P. Malik

Director

Mr. Analjit Singh

Director

Dr. Pritam Singh

Director

Mr. M. Damodaran

Director

Mr. Ravinath

Director

Dr. AnandC.Burman

Director

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Dr. BrijmohanLall Munjal Mr. Munjal is the founder Director and Chairman of the Company and the $3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India). In recognition of his contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government.

Corporate Governance At Hero MotoCorp, it is the firm’s belief that the essence of Corporate Governance lies in the phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the shareholders. The Chairman and Directors are ''Your'' fiduciaries and trustees.

Their

objective is to take the business forward in such a way that it maximizes ''Your'' long-term value. This Company is committed to benchmarking itself with global standards for providing good Corporate Governance. It has put in place an effective Corporate Governance System which ensures that the provisions of Clause 49 of the Listing Agreement are duly complied with. The Board has also evolved and adopted a Code of Conduct based on the principles of Good Corporate Governance and best management practices being followed globally.

GRADING POSITIVES Market leadership, strong brand equity, professional management, high operating efficiency and established scale economies. Strong financial profile characterized by healthy margins, high profitability and cash generation. Potential upsides to our estimates: (1) HMCL sustains its current market share, leveraging its brand equity, product performance and distribution strengths; (2) industry growth exceeds our estimates over the medium term despite existing concerns on macro-economic scenario; (3) HMCL betters the margins estimated by us via sustained business growth and increases in operating efficiency even in the face of competitive and cost pressures.

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GRADING SENSITIVITIES Key sensitivities to our estimates include: (1) Inflation in input costs not being neutralized by price increases because of competitive pressures; (2) High concentration on Executive segment; (3) Intensifying competition from global players; (4) Ability to develop in-house technical capability or form alternate technical tie-ups with external institutions.

Company History - Hero Moto Corp 

1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)



1975—Hero Cycles becomes largest bicycle manufacturer in India.



1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed



1984—Hero Honda Motors Ltd. incorporated



1985—Hero Honda motorcycle CD 100 launched.



1989—Hero Honda motorcycle Sleek launched.



1991—Hero Honda motorcycle CD 100 SS launched.



1994 – Hero Honda motorcycle Splendor launched.



1997—Hero Honda motorcycle Street launched.



1999 – Hero Honda motorcycle CBZ launched.



2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.



2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.



2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.



2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.



2005—Hero Motocorp Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.

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

2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.



2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.



2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and limited edition of Hero Honda motorcycle Hunk launched



2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.



2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched. New licensing arrangement signed between Hero and Honda. In August

Hero

and

Honda

parted

company,

thus

forming

Hero

MotoCorp

and Honda moving out of the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike Named Hero "Impulse". 

2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike are launched.



2013-Hero MotoCorp unveiled line-up of 15 updated products including Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Motocorp Super Splendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three new technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart.

Awards & Recognitions on 2011 

Two-wheeler Manufacturer of the Year award by Bike India magazine. Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike Awards.



CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new corporate entity" by CNBC Awaaz Consumer Awards



"Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards

29



Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero Good Life



"Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing Award of Asia Order of Merit for Hero Good Life



Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand" 2011 serve

•

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.

•

Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in their product. And after selling they have the services and maintenances. Their constant endeavor is to support the company's mandate of providing highest level of customer satisfaction by taking good care of customer’s two-wheeler service and maintenance through their vast network of more than 2100 committed dealers and service outlets spread across the country. Apart from that hero motocorp focused on cleanliness and other aesthetics of the service stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance the in house experience of the customers at those “customer touch point”. To ensure that millions of customers in the rural area are not left waiting for adequate service as it is impossible for the company to introduce service station at every nook and corner of the country, mobile service stations are regularly arranged with prior intimation to public about 30

the rout that the mobile workshop would take when passing through that region so that customers can come and get their two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus retaining customers. Good life: Customer Loyalty Program Good Life is a Customer Relationship Program introduced a decade ago, which Endeavour’s to enhance customer satisfaction and initiate increased levels of member engagement. The main objective of this Program is to make our customers our Brand Ambassadors to generate referral sales and boost service visits. The Good Life Program has enabled the Company build a consolidated base of 10 million plus loyal customers; in the process, a new distribution platform has emerged. Good Life now contributes a huge 14% to the Company’s overall sales (purely through referrals), in addition to incremental sales. Good Life has emerged as the largest Customer Relationship Program in India, witnessing additions of 0.38 million members each month. During the year, the Program’s member base shot up 16%, with new 4.51 million transactions being undertaken. Besides aiming to increase the number of customers and volume of transactions, the Program seeks to enhance revenue opportunities for dealers as well. Different levels of engagement have been in-built into the Program with the aim of increasing its people engagement initiatives. Some of these are: transaction-based rewards, exclusive event invites, personal accidental insurance, service continuity bonus, transaction benefits on special occasions (birthdays, anniversaries), quarterly newsletters and interaction through a program website. The Program began with a member transaction booklet, a replica of the Passport Booklet, which helps in engaging with customers. However, the Program has been e-enabled now to improve its geographical reach and efficiency level. It runs on the backbone of a robust and engaging front-end and a sound, solid and technical back-end. The Program includes customized technology, combining a mix of Magnetic Swipe/Bar Code. Personalized Membership Cards are shared with Good Life members, which are easy to carry, transact and earn/redeem rewards. Online member profiling and real-time customer feedback module (via questionnaires) are some more salient features of the Program. During the year, Good Life has been the recipient of several accolades and awards on national and international platforms. Some of these were:

31



‘Order of Merit’ in PMAA awards 2011 under ‘Best Activity Generating Short or Long Term Brand Loyalty’ category



Colloquy Award under Innovation in Loyalty Marketing (International) category



Qualified as ECHO Finalist (5th place) in 2011 DMA International ECHO™ Awards competition Loyalty Award under Auto Sector

OPERATION RAMP-UP With demand for bikes recording a stupendous growth of 15% during the year under review, the Company’s capacities were severely strained. This prompted it to augment its capacity at its three plants – up from 5.4 million units to 6.35 million – during the year. This was made possible through a number of de-bottlenecking measures. For example, the Company’s plants were made leaner by outsourcing non-critical processes and operations. Besides this, a number of structural changes and alterations were made in its manufacturing strategy to effectively implement its Sales Plan for 2012-13. Major replacements were also executed in the paint and assembly shop, ensuring little or no shutdown along the assembly line. Apart from the above measures, several innovative technologies were inculcated to reduce operational costs.

Some examples of these are: 

A breakthrough technology for gear rolling was implemented for massproduction



Fine blanking, an alternate process of hobbling, was introduced for sprocket components



Advanced cam grinding was introduced to increase productivity and control costs

The Company’s oldest plant at Dharuhera was in the limelight for two specific reasons: 

Wage negotiations were concluded



Plant won TPM Excellence Award

32

The Company continues to set new industry benchmarks in the areas of energy conservation and sustainability. Vapor absorption machines and heat recovery units were installed during the year to utilize waste heat from Gas DGs for air-conditioning and pre-heating of hot water generation. Other green initiatives included projects on waste water management, LED lighting and solar power. These cost leadership and green projects yielded considerable savings to the Company within a short period of time.

PORTFOLIO OF PRODUCTS Hero MotoCorp offers wide range of two wheeler products that include motorcycles and scooters, and has set the industry standards across all the market segments. Bike category

100cc 

SPLENDOR PLUS



SPLENDOR NXG



SPLENDOR PRO



PASSION PRO



PASSION XPRO



MAESTRO



PLEASURE



HF DAWN



HF DELUXE

125cc Bike category 

SUPER SPLENDOR



IGNITOR

33

150cc Bike category 

KARIZMA R



KARIZMA ZMR



IMPULSE



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. The rising differences between the two partners gradually emerged as an irritant. Differences had been brewing for a few years before the split over a variety of issues, ranging from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year technology tie-up that expires in 2016) as well as Indian partner's uneasiness over high royalty payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero Honda (mainly managed by the Munjal family) to merge the company's spare parts business with Honda's new fully owned subsidiary Honda Motorcycle and Scooter India (HMSI). 34

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), s), two and three wheelers and auto components; the automotive sector’s contribution to the GDP is expected to double reaching a turnover worth US$ 145 billion in 2016, according to the AMP 20 TPG, Bain Capital, and Carlyle Group. Honda will continue to provide technology to Hero Honda motorbikes until 2016 for existing as well as future models.

35

CHAPTER:2 REVIEW OF LITERATURE

36

Despite extensive research in the years since Cardozo’s (1965) classic article, researchers have yet to develop a consensual definition of consumer satisfaction. Oliver (1997) addresses this definitional issue by paraphrasing the emotion literature, noting that "everyone knows what [satisfaction] is until asked to give a definition. Then it seems, nobody knows" (p. 13). Based on the perception that satisfaction has been defined, most research focuses on testing models of consumer satisfaction (e.g., Mano and Oliver 1993; Oliver 1993; Oliver and DeSarbo 1988; Spreng, MacKenzie, and Olshavsky 1996; Tse and Wilton 1988) while definitional considerations have received little attention. As a result, the literature is replete with different conceptual and operational definitions of consumer satisfaction (see Table 1). As Peterson and Wilson (1992) suggest, "Studies of customer satisfaction are perhaps best characterized by their lack of definitional and methodological standardization" (p. 62). A basic definitional inconsistency is evident by the debate of whether satisfaction is a process or an outcome (Yi 1990). More precisely, consumer satisfaction definitions have either emphasized an evaluation process (e.g., Fornell 1992; Hunt 1977; Oliver 1981) or a response to an evaluation process (e.g., Halstead, Hartman, and Schmidt 1994; Howard and Sheth 1969; Oliver 1997, 1981; Tse and Wilton 1988; Westbrook and Reilly 1983). From a general definition perspective, process definitions are problematic in that there is little consistency in the satisfaction process. From an operational perspective, process definitions are plagued by antecedent constructs included in the conceptual definition; thus, there is an overlap between the domains of the determinative process constructs and the consumer satisfaction construct. Most definitions have favored the notion of consumer satisfaction as a response to an evaluation process. Specifically, there is an overriding theme of consumer satisfaction as a summary concept (i.e., a fulfillment response (Oliver 1997); affective response (Halstead, Hartman, and Schmidt 1994); overall evaluation (Fornell 1992); psychological state (Howard and Sheth 1969); global evaluative judgment (Westbrook 1987); summary attribute phenomenon (Oliver 1992); or evaluative response (Day 1984)). However, there is disagreement concerning the nature of this summary concept. Researchers portray consumer satisfaction as either a cognitive response (e.g., Bolton and Drew 1991; Howard and Sheth 1969; Tse and Wilton 1988) or an affective response (e.g., Cadotte, Woodruff, and Jenkins 1987; Halstead, Hartman, and Schmidt 1994; Westbrook and Reilly 1983). Furthermore, operational definitions may include a behavioral dimension of satisfaction (e.g., "I would recommend the school to students interested in a business career." (Halstead, Hartman, and Schmidt 1994)), although conceptual definitions are void of a behavioral orientation. A final discrepancy occurs in the terms used as a designation for this concept. Researchers have used 37

discrepant terms to mean satisfaction as determined by the final user: consumer satisfaction (e.g., Cronin and Taylor 1992; Oliver 1993; Spreng, MacKenzie, and Olshavsky 1996; Tse and Wilton 1988; Westbrook 1980), customer satisfaction (e.g., Churchill and Surprenant 1982; Fornell 1992; Halstead, Hartman, and Schmidt 1994; Smith, Bolton, and Wagner 1999), or simply, satisfaction (e.g., Kourilsky and Murray 1981; Mittal, Kumar, and Tsiros 1999; Oliver 1992; Oliver and Swan 1989). These terms are used somewhat interchangeably, with limited, if any, justification for the use of any particular term. The lack of a consensus definition for satisfaction creates three serious problems for consumer satisfaction research: selecting an appropriate definition for a given study; operationalizing the definition; and interpreting and comparing empirical results. These three problems affect the basic structure and outcomes of marketing research and theory testing. When discussing and testing theory it is critical to explicate the conceptual domain. Part of this process is defining the constructs of interest and explaining why this conceptualization is appropriate. For constructs having a consensus definition, this issue does not need to be addressed in each and every study. However, if multiple definitions for a construct exist, then researchers must explicitly define and justify the definition selected. Unfortunately, most satisfaction researchers do not justify their choice of definition. In some cases, satisfaction is not defined at all. Even if a researcher attempts to define satisfaction, there are no clear guidelines for selecting an appropriate definition for a given context. As a result, the selection of a definition for satisfaction becomes idiosyncratic. Academy of Marketing Science Review Volume 2000 No. 1 Available: http://www.amsreview.org/articles/giese01-2000.pdf Copyright

© 2002

–

Academy of Marketing Science. Giese and Cote / Defining Consumer Satisfaction 2 A second problem is the development of valid measures of satisfaction. Defining a construct’s theoretical meaning and conceptual domain are necessary steps to developing appropriate measures and obtaining valid results (Bollen 1989; Churchill 1979; Gerbing and Anderson 1988). If the choice of a consumer satisfaction definition, or lack thereof, is not justified, it is unclear whether the measures used are appropriate or valid. As Marsh and Yeung (1999) point out, "the meaning attributed to the items and the underlying nature of the measured . . . construct are changed by the context within which they appear" (bold added). This problem becomes more serious as the measure becomes more global in nature. Thus, the "chameleon effect" described by Marsh and Yeung (1999) is rampant in satisfaction research. Generally worded, global measures provide no guidance to respondents or other researchers for interpreting the exact meaning of satisfaction. In this situation, respondents will interpret the meaning of "satisfaction" based on the other cues including instructions, other measured 38

constructs, and products being assessed. Given the lack of a clear definition or definitional framework, developing context-specific items becomes difficult and idiosyncratic. For example, Westbrook (1987) defines satisfaction as a "global evaluative judgment about product usage/consumption" (p. 260). This definition provides little guidance for developing context-specific measures. Based on this definition, satisfaction was assessed using an item like the following: How do you feel about the product or product usage? (I feel delighted/terrible). While this item is consistent with the definition, Marsh and Yeung (1999) would argue it is subject to chameleon effects. As they note: We evaluate support for the chameleon effect that hypothesizes that an open-ended (content-free) item such as those appearing on most esteem scales (e.g., "I feel good about myself," "Overall, I have a lot to be proud of," "Overall, I am no good") takes on the meaning of items with which it appears. For example, if the item "I feel good about myself" appears on a survey in which all of the other items refer to academic situations, then respondents are more likely to respond in terms of how they feel about themselves academically. On the other hand, if all of the other items on the survey refer to their physical conditions, then respondents are more likely to respond to the same item in terms of how they feel about themselves physically (page 49). Similarly, the meaning of the "delighted-terrible" question posed above would change depending on other items and contextual information in the study. Without a consensus definition of satisfaction that can be used to develop contextspecific measures, the combination of explicit and implicit (chameleon effect) inconsistencies prevents meaningful conclusions about consumer satisfaction. Perhaps the most serious problem caused by the lack of a consensus definition is the inability to interpret and compare empirical results. Peterson and Wilson (1992) note that differences in results depend on how satisfaction was operationalized. For example, how do expectations influence satisfaction? It is impossible to compare results across studies since differences in the definition and operationalization of satisfaction will influence the role of expectations in the model. Furthermore, expectations may be irrelevant for the particular context in which satisfaction is being determined. A specific concern to managers is that uninterpretable results are essentially results that can not provide information to make decisions. Thus, a lack of definitional and measurement standardization limits the degree to which generalizations can be developed; a lack of definitional standardization limits the degree to which results can be explained, justified, and compared. Without definitional explication, true satisfaction can be elusive. A brief example may illustrate the relevance of a standardized definition of consumer satisfaction

39

CHAPTER:3 RESEARCH METHODOLOGY

40

RESEARCH METHODOLOGY The information required for this study obtained was basically through two sources. Primary Data: Primary Data will gathered by a survey through a structured questionnaire. The Data has been collected from 50 customers, through questionnaires, by using simple random sampling. In addition interaction with the staff of Hero MotoCorp Ltd has also given some information. Secondary Data: Secondary Data comprises of information obtained from annual reports, brochures, manuals websites etc.

Target respondents Gender: Male and female Age group: 20-45 Sampling units: Hero Motors Two wheelers users No. of Samples: 50 respondents

STATEMENT OF THE PROBLEM 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.

41

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 understand two wheeler sector in India. 7. How the split with Honda has affected Hero motors.

SCOPE OF THE STUDY  This study helps the organizations to increase their service and product quality and in turn increase the market share, top and bottom line of the company.

NEED FOR THE STUDY

Marketing starts with identifying the needs of customers and ends in satisfying those wants. The goal of marketing is to attract new customers by promising superior value and to keep current customers by delivering satisfaction based on their preferences retaining them. Without customer, no market exists. As the customers are regarded as the superiors in today’s market, the level of satisfaction and their preferences should be keenly studied. 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 driventwo-wheelers such as scooters, motorcycles.

42

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 twowheelers. 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.

43

CHAPTER:4 DATA ANALYSIS & INTERPRETATION

44

1.Which type of Hero two wheeler model owned by you?

Number

Model

Respondents

1

SPLENDOR

20

2

GLAMOUR

12

2

KARIZMA

4

3

MAESTRO

4

4

PLEASURE

9

5

IMPULSE

1

Total

50

Interpretation:- From the above table it is inferred that, 40% of respondents are using splendor and 24% of respondents using Glamour, 18% use pleasure ,8% use Karizma, 8% use Maestro and only 2% of respondents use Impulse.

45

1. What is the source from which you found the advertisements about Hero Motors?

NO

Source

Respondents

1

Television

20

2

Newspapers

12

3

Radio

6

4

Hoardings

12

Total

50

Advertisements 20 15 10 5

Advertisements

0

Interpretation: From the above table it is very clear that most of the respondents watched the advertisements of Hero in Televisions i.e 40% and newspapers, Hoardings combinely 48% and radio is very less i.e 12%.

46

2. Who influenced you to make the purchase of Hero Motors.?

A) Friends

B) Family

C)Sales People

Influencers

Response

Friends

21

Family

18

Sales People

11

Total

50

25

20

15 Series1 10

5

0 Friends

Family

Sales People

Interpretation: From the above interpretation it is observed that the purchase is mostly influenced by friends 42% , family 36% and by sales people is just 22% which is the least of the others.

47

4.What is your preferred capacity and color about your motor cycle.?

A) 100cc

B) 125cc

C)150cc

D)200cc

A) Red

B) Black

C)Blue

D)Other

Capacity

Response

Colour

Response

100cc

5

Red

12

125cc

14

Black

22

150cc

20

Blue

10

200cc

11

Others

6

Total

50

Total

50

preference 25 20 15 preference

10 5 0 100cc

125cc

150cc

200cc

48

Preferred color 25 20 15 Preferred color

10 5

0 Red

Black

Blue

Others

Interpretation: Capacity: From above table it is observed that most of the two wheeler users are interested in 150cc bikes i.e 40%, 125cc is 28%, 200 cc is 22%,100cc is just 10% Colour: Maximum people prefer blackcolour 44% followed by red 24% , blue and the others

49

3. Are you satisfied with the delivery time of your motor cycle.? A) Yes

B) No

Response Yes

36

No

13

Total

50

delivery time 40 35 30 25 20

delivery time

15 10 5 0

Yes

No

Interpretation: From the above table it is very clear that maximum respondents are satisfied with the delivery time of the motorcycle i.e 72% and the remaining 28% were not satisfied by the delivery time.

50

4. How do you think is the reliability of the hero vehicles.?

A) Excellent

B) Good

C)Average

D)poor

Response Excellent

20

Good

22

Average

6

Poor

2

Total

50

Reliability 25 20

15 10

Reliability

5

0 Excellent

Good

Average

Poor

Interpretation: From the above table it is very clear that maximum respondents feel that reliability of hero Vehicles is excellent and good i.e 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve reliability of its vehicles to attract more customers and to satisfy the existing customers.

51

5. What is your level of satisfaction of service with Hero Motors ?

A) Excellent

B) Good

C) Average

D)poor

Response Excellent

20

Good

22

Average

6

Poor

2

Total

50

service 25 20 15 service

10 5 0 Excellent

Good

Average

Poor

Interpretation: From the above table it is very clear that maximum respondents feel that they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve the service to its customers for maintaining the maximum satisfied customers which will bring in more customers and good word of mouth for Hero Motors.

52

6. What is the reason for your preference of Hero.?

A) Quality

B) Fuel Efficiency

C) Economic D) Good service

Preferences

Responses

Quality

10

Fuel efficiency

20

Economic

8

Good Service

12

Total

50

Reason for preference 25

20 15 10

Reason for preference

5

0 Quality

Fuel Economic efficiency

Good Service

Interpretation: From the above table it can be concluded that maximum respondents prefer hero vehicles as they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can take measures to improve the service to its customers for maintaining the maximum satisfied customers which will bring in more customers and good word of mouth for Hero Motors.

53

9. From how long are you using the Hero vehicle.?

A) <6months

B) 6-9 months

C) 9-12 months

Usage

Responses

Less than 6 months

5

6-9 months

10

9-12 months

13

More that year

22

Total

50

D) more than year

usage period 25 20 15 usage period

10 5 0 Less than 6 months

6-9 months

9-12 months More that year

Interpretation: From the above table it can be concluded that maximum respondents i.e 44% using Hero vehicles for more than a year and 26% of respondents using from 9-12 months, 20% using from 6-9 moths and 10% are the new customers. From this we can conclude that most of the hero vehicles users are using from long period .so if hero motors concentrate on providing better service after the purchase to the customers they will keep using the Hero vehicles for longer period.

54

10. How do you think Hero can improve on customer service .?

A) Service in time

B)well trained mechanics

C)Less labor cost

Preference

Response

Service in time

15

Well trained mechanics

24

Less labor cost

11

Total

50

Improving serivce 30 25 20 15 Improving serivce

10

5 0 Service in time

Well trained mechanics

Less labor cost

Interpretation: 48% of respondents feel that the customer service at hero motors can be improved by training the mechanics and 30% feel by doing service in time, 22% feel it by providing the service for lesser costs. Providing the satisfying service is very essential for any company to keep its customers satisfied. Hero must take care of all the three as they were important to increase service. 55

11.Which age group do you belong.?

A)20-25

B)25-35

C) 35-45

D) above 45

Age group

Responses

20-25 years

5

25-35

16

35-45

21

Above 45

8

Total

50

Age groups 20-25 years 10% Above 45 16% 25-35 32% 35-45 42%

Interpretation: The maximum users of the hero vehicles belong to the age group of 35-45 followed by 25-35, 42% belong to age group of 35-45 and 32% belong to 25-35, 10 % of respondents are between 20-25 years of age and 16 % are above 45. From this is clear that the mid aged people are using the hero vehicles mostly. It has to produce different models for younger population. 56

11. Problems faced at the time of service.?

A) High spare parts cost B)Low quality

C) Delay in service

Problem faced

Response

High spare parts cost

10

Low quality

10

Delay in service

14

No problems

16

Total

50

D)No Problems

customer issues 18 16 14 12 10 8

customer issues

6 4

2 0 High spare parts cost

Low quality

Delay in service

No problems

Interpretation: It was very good that 32% customers not facing any problems with the service with the hero but there were some problems faced by the customers which should mostly concentrate. 20% feel the spare parts cost is high and 20% that the quality of service is low, 28% feel that the service is slow.

57

12. Will you recommend Hero Motors to others.?

A) Yes

B) No

Recommendation

Response

Yes

41

No

9

Total

50

Recommendation to others No 18%

Yes 82%

Interpretation: From the above responses from the customers it is clear that 82% of the respondents would like to recommend Hero to others and only 18% don’t want to recommend which is less percentage but hero should have to take measures to convert the unsatisfied as satisfied customers who inturn recommend hero products to others.

58

13. Are you satisfied with the overall service of Hero.?

A) Yes

B) No

Recommendation

Response

Yes

40

No

10

Total

50

overall satisfaction 40 35 30

25

overall satisfaction

20 15 10 5 0 Yes

No

Interpretation: From the above responses from the customers it is clear that 80% of the respondents were satisfied with the overall service of the Hero motors and 20% were not satisfied hero should have to take measures to convert the unsatisfied as satisfied customers.

59

CHAPTER:5 FINDINGS & CONCLUSION

60

SUMMARY & 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. Ability to understand customer’s needs and wants, maintenance cost is low. 3. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number 4. The TV promotions are more influence the customer behavior of two wheeler sector. 5. The purchase desiccations of consumers are influence by friends and family. 6. Blue, Red, Black color bike with 150 cc to 200cc is fast moving. 7. Most of the despondences are agree that the bikes are delivering proper time. 8.

The service provide by Hero MotoCorp is satisfied by more than 70% of customers.

9. Brand name of Hero is still good in market after split with Honda 10. Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction 11. The research showing that consumer want to get more service satisfaction. 12. Maximum of the customer likes to recommend Hero two wheeler to their friends, its shows they are satisfied with the bike.

13.Hero MotoCorp wrapped up with sales of 6.25 million bikes and scooters, considerably ahead of its former Japanese partner’s tally of 3.72 million units

61

SUGGESTIONS AND RECOMMENDATIONS

62

SUGGESTIONS AND RECOMMENDATIONS It is very hard to hold the pulse of a customer in the market. Customer’s satisfaction is different for different people at different situations;



Majority of the respondents were still unaware about different versions of Hero bikes. Therefore I suggest the company personals should take initiative to create awareness about these versions.



Few of the customers expressed concern over frequency of the maintenance & service problems faced by their vehicle and expressed ‘high satisfaction’ over it. Therefore, I suggest them to re look at the vehicle & re-develop in order to stop the frequency of these problems.



Hero MotoCorp want to give more importance in there service part its include timely service, and quality of service



Hero want to develop more promotion for there some models like sports bike and gear less scooter



Hero bikes can concentrate to increase their export market



Hero MotoCorp Ltd should try to give more advertisements in news paper, bill boards in that area to enable easy recall of the people for Hero MotoCorp Ltd.



Hero Motors can also increase models attracting the Indian youth.

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CONCLUSION

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CONCLUSION Customer satisfaction is a marketing tool and a definite value added benefit. It is often perceived by customers as important as the primary product or service your organization offers. For making a better relationship with customer they always use genuine parts in their product. And after selling they have the services and maintenances.Their constant endeavor is to support the company's mandate of providing highest level of customer satisfaction by taking good care of customer’s two-wheeler service and maintenance through their vast network of more than 2100 committed dealers and service outlets spread across the country. Apart from that hero MotoCorp Ltd focused on cleanliness and other aesthetics of the service stations and add such air conditioned waiting area, internet surfing, coffee shops etc to enhance the in house experience of the customers at those “customer touch point”. To ensure that millions of customers in the rural area are not left waiting for adequate service as it is impossible for the company to introduce service station at every nook and corner of the country, mobile service stations are regularly arranged with prior intimation to public about the rout that the mobile workshop would take when passing through that region so that customers can come and get their two wheelers serviced. All these activities are aimed to increase the customer loyalty and thus retaining customers. 7

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ANNEXURE

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ANNEXURE 1.Which type of Hero two wheeler model owned by you? A) Splendor

B) Glamour

c) Passion

E) Impulse

F) Maestro

G) Pleasure

D) Karizma

2. What is the source from which you found the advertisements about Hero Motors A) Television

B) Newspapers

C) Radio

D) Hoardings

3. Who influenced you to make the purchase of Hero Motors. / A) Friends

B) Family

C) Sales People

4. What is your preferred capacity and color about your motor cycle. A) 100cc

B) 125cc

C) 150cc

A) Red

B) Black

C) Blue

D) 200cc D) Other

5. Are you satisfied with the delivery time of your motor cycle. A) Yes

B) No

6. How do you think is the reliability of the hero vehicles. A) Excellent

B) Good

C) Average

D) poor

7. What is your level of satisfaction of service with Hero Motors A) Excellent

B) Good

C) Average

D)poor

8. What is the reason for yout preference of Hero. A) Quality

B) Fuel Efficiency

C) Economic

9. From how long are you using the Hero vehicle. A) <6months

B) 6-9 months

C)9-12 months

D)more than year

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10. How do you think Hero can improve on customer service. A) Service in time

B)well trained mechanics

C) Less labor cost

11.Which age group do you belong? A) 20-25

B) 25-35

C) 35-45

D) above 45

12. Problems faced at the time of service. A) High spare parts cost B) Low quality

C) Delay in service

D) No Problems

13. Will you recommend Hero Motors to others? A) Yes

B) No

14. Are you satisfied with the overall service of Hero? A) Yes

B) No

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BIBLIOGRAPHY

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http://en.wikipedia.org/wiki/Hero_MotoCorp http://www.heromotocorp.com/en-in/ 

Philip Kotler, ‘marketing management’ prentice Hall of India Pvt. Ltd. New Dehli.



C. R. Kothari ‘Research methodology’, vishwa publication, New Delhi.



SaxenaRajan ‘marketing management’ Tata Mcgraw-hillpublicating Co. Ltd. New Delhi.



H. V. Verma ‘marketing of services’ Global business press, New Delhi.

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Business today magazine of February issue,2008

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