Hero Project
Hero Project
Hero Project
HERO MOTOCORP”
Submitted by
(Reg.no.13VFC24067)
MRS.MANJULA
2015-2016
`STUDENT DECLARATION
and was submitted in partial fulfillment for the award of bachelor of business
I also declare that this project is original and genuine and has not been submitted to
any other university/ institution for the award of any degree, diploma or other similar
titles or purposes
project work under taken by him, under my supervision and guidance and the project
has not be submitted either in part or whole for the award of any other degree or
during the year 2015-2016. It is to certify that all corrections/suggestions have been
incorporated in the project report and a copy is deposited in the department library.
This project work as been approved as it satisfies the academic requirement for the
Date: (HOD)
PRINCIPAL CERTIFICATE
Date: (principal)
ACKNOWLEDGEMENT
I would like to thank all those persons who have contributed towards the successful
completion of the project work. I am glad to say that working on this project was
illuminating and enjoyable for me.
I would like to thank all the faculty members of BBM and my friends who directly
and indirectly helped me to complete this project.
P.HARISH KUMAR
(13VFC24067)
CONTENTS
CHAPTER No. CHAPTER NAME Pg.no
BIBLIOGRAPHY 82
ANNEXURE 83-84
LIST OF TABLES
SL.NO LIST OF TABLES PAGE
NO:
4.1 Showing type of Hero two wheeler models 51
owned
4.2 showing the source of information about Hero 53
4.3 showing the influenced people for buying Hero 55
4.4 Showing the preference of capacity &color 57
4.5 showing the responses on Vehicle delivery time 59
4.6 showing availability test drive during on 61
showroom visit
4.7 showing the reliability of Vehicle 63
4.8 showing level of Service Satisfaction 65
4.9 showing the brand name influence in purchase 67
LIST OF CHARTS
EXECUTIVESUMMARY
In this project, an attempt has been made to ―study on customer satisfaction in Hero Moto
Crop‖ This study has been conducted to analyze the customer‘s satisfaction level with special
reference to Hero Moto Crop in Bangalore. Customer satisfaction includes factors like
quantity, quality, products and service, Cost etc., they have large number of customers all
over India, but this study has been conducted with special reference to customers in
Bangalore only.
The study was conducted among the population of 120 where the sample size of 100 was
drawn from the population. The sampling technique used in this study is stratified simple
random sampling. The research design used for the study is descriptive research design. A
questionnaire was used to interview the 100 respondents. The secondary data was collected
through company website. Percentage analysis and statistical tools like chi-square for data
analysis and interpretation.
The analysis and inferences were made according to varied opinions of the respondents
regarding their quality of service and their behavior customers towards the Hero Moto Crop
and also their opinion towards the competition of two wheelers vehicles. The attributes that
influence the customers quality,service availability of spares value of money offered etc. The
customer has given excellent rating for Hero Moto Crop in Domlur based on the inference
till conclusion points towards their recommendations for satisfaction among the customers
and there by the company to attract more numbers of customers.
A Study On Customer Satisfaction On Hero Moto Crop
INTRODUCRTION
The project is all about measuring the customer satisfaction in Hero motors. For the
past few years 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.
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.
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
High performing businesses have developed principles and strategies for achieving
customer satisfaction. This paper presents a framework or set of ideas for using customer
satisfaction 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.
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."
INTRODUCTION TO MARKETING
Extending the Traditional Boundaries of Marketing
intangible services and operate in B2C and B2B markets. An important distinction is that
profit-seeking businesses tend to focus their marketing on just onepublic – their customers.
Non-profit businesses however must often market to multiple publics (say, their clients and
sponsors), which complicates decision making regarding the markets to target. Also a
customer or service user may wield less control over the organization‘s destiny than would be
true for customers of a profit-seeking firm. As a result, non-profit marketing must fine tune
its marketing variables to adjust to these conditions.
Marketing concepts:
Needs, Wants and Demands:
The most basic concept underlying marketing is that of human needs. A need is a state of felt
deprivation. It is a part of the human makeup. Humans have many needs, viz., physical needs,
social needs, spiritual needs and so on. Wants are the form taken by needs as they are shaped
by the one‘s culture and personality. Wants are thus shaped by both the internal and external
factors. Wants are described in terms of objects that will satisfy needs.For example, thirst is a
need. To quench this thirst, a person may consider a number of options – drink water or a soft
drink or a fruit juice. These objects (which represent the different choices for a person to
fulfill his/her need) comprise the potential want-list. As people are exposed to more objects
that arouse their interest and desire, marketers try to provide more choices, that is, more want-
satisfying products. People have almost unlimited wants but limited resources. Therefore,
they want to choose products that provide the most satisfaction for their money. When backed
by buying power (ability), a want becomes a demand
Products:
A product is anything that can be offered to a market to satisfy a need or want. People satisfy
their needs and wants with products. Though the word suggests a physical object, the concept
of product is not limited to physical objects. Marketers often use the expressions goods and
services to distinguish between physical products and intangible ones. These goods and
services can represent cars, groceries, computers, places, persons and even ideas. Customers
decide which entertainers to watch on television, which places to visit for a holiday, which
ideas to adopt for their problems and so on. Thus the term ‗product‘ covers physical goods,
services and a variety of other vehicles that can satisfy
Markets:The concept of transactions leads to the concept of a market. A market is the set
of actual and potential buyers of a product. It may exist in a physical environment as a
marketplace or in a virtual environment (on the internet platform) as a marketspace. To
understand the nature of a market, imagine a primitive economy consisting of only four
people a farmer, a fisherman, a potter and a hunter. differentways in which these traders
could meet their needs. In the first case, self-sufficiency, they gather the needed goods for
themselves. In the second case, decentralized exchange, each person sees the other three as
potential buyers who make up a market. In the third case, centralized exchange, a new person
called a merchantappears and locates in a central area called a marketplace. Each trader
brings goods to the merchant and trades for other needed goods. Merchants and central
marketplaces greatly reduce the total number of outlets.Transactions needs to accomplish a
given volume of exchange. As economies grow, exchange becomes even more centralized, as
seen in the growth of huge companies. Large supermarkets now serve millions of people who
formerly shopped in smaller.
MARKETING MIX
The marketing mix was proposed by professor E. Jerome McCarthy in the 1960s.[7] It
consists
four basic elements called the "four P's". Product is the first P representing the actual product.
Price represents the process of determining the value of a product. Place represents the
variables of getting the product to the consumer such as distribution channels, market
coverage and movement organization. The last P stands for Promotion which is the process of
reaching the target market and convincing them to buy the product. The four Ps determine
how
marketing satisfies consumer needs. They are considered controllable marketing mix factors
meaning that they can change or be altered as needed. Habits, lifestyle, and diet are all
b) Cost: In production, research, retail, and accounting, a cost is the value of money
that has been used up to produce something, and hence is not available for use
anymore. In business, the be one of acquisition, in which case the amount of money
expended to acquire it is counted as cost. In this case, money is the input that is gone
in order to acquire the thing. This acquisition cost may be the sum of the cost of
production as incurred by the original producer, and further costs of transaction as
incurred by the acquirer over and above the price paid to the producer. Usually, the
price also includes a mark-up for profit over the cost of production.
c) Communication:
Communication (from Latin commūnicāre, meaning "to share‖) is the act of
conveying intended meaning to another entity through the use of mutually
understood signs and semiotic rules. The basic steps of communication are the
forming of communicative intent, message composition, message encoding, and
transmission of signal, reception of signal, message decoding and finally
interpretation of the message by the recipient.
Channel:
d) A marketing channel is a set of practices or activities necessary to transfer the
ownership of goods from the point of production to the point of consumption. It is the
way products and services get to the end-user, the consumer; and is also known as
a distribution channel A marketing channel is a useful tool for management, and is
crucial to creating an effective and well-planned marketing strategy.
Another less known form of the marketing channel is the Dual Distribution channel.
This channel is a less traditional form that allows the manufacturer or wholesaler to
reach the end-user by using more than one distribution channel. The producer can
simultaneously reach the consumer through a direct market, such as a website, or sell
to another company or retailer that will reach the consumer through another channel,
i.e., a store. An example of this type of channel would be franchising.
e) Consumer:The consumer is the one who pays to consume goods and services
produced. As such, consumers play a vital role in the economic of a nation.
Without consumer demand, producers would lack one of the key motivations to
produce: to sell to consumers. The consumer also forms part of the chain of
distribution.Recently in marketing instead of marketers generating broad demographic
profiles and Fisio-graphic profiles of market segments, marketers have started to
engage in personalized marketing, permission marketing, and mass customization.
W = Weather
E = Economic
FUNCTIONS OF MARKETING:
Distribution
Distribution is about deciding how you'll get the goods or services you want to sell to
the people who want to buy them. Having an idea for a product is great, but if you
aren't able to get that product to the customers you aren't going to make money.
Distribution can be as easy as setting up shop in the part of a city where your target
customers are -- but in an increasingly interconnected world, distribution more often
than not now means that you'll need to take your products or services to the
customers.
Financing
It takes money to make money. As a business owner, an important function of
marketing a product is finding the money through investments, loans, or your personal
capital to finance the creation and advertising of your goods or services.
Market Research
Market research is about gathering information concerning your target customers.
Who are the people you want to sell to? Why should they buy from you as opposed to
a rival business? Answering these questions requires that you do some on-the-ground
observation of the market trends and competing products.
Pricing
Setting the correct price for your product or service can be a challenge. If you price it
too high, you might lose customers -- but if you price it too low you might be robbing
yourself of profits. The "right" price normally comes through trial and error and doing
some market research.
Product and Service Management
Once you've determined the target market and set the price of your product or service,
the goal becomes to effectively manage the product or service. This involves listening
to customers, responding to their wants and needs, and keeping your products and
services fresh and up to date.
Promotion
Most business owners are familiar with the idea of promotion. Advertising your
products and services is essential to attracting new customers and keeping existing
customers coming back. As the marketplace changes, you'll want to respond
appropriately by tailoring your promotion messages to new media (such as Facebook
or Twitter), by sticking with more conventional outlets -- or by using a mix of the old
and new.
Selling
While we tend to think of selling and marketing as being closely linked, selling is last
on the list of the seven functions of marketing. This is because selling can happen
only after you've determined the wants and needs of your customer base and are able
to respond with the right products at the right price point and time frame
particular product might hinder the marketers playing in that particular field.
• Economic. Various trends in the economic business cycle, including inflation, recessions
, deficit or income level. Each of these factors can have a direct impact on marketing which
may
• Social: The social forces refer to the structure and dynamics of individuals and groups and
their
Behavior, beliefs, thought patterns and lifestyles, friendships, etc. When consumers change
their
• Political: The socio-economic conditions are closely related to the state of the governmental
Speech and other limitations (or opportunities), the marketing strategies will adapt to the
political conditions.
competitor entering the market will directly affect the marketing strategies of the incumbent
companies. Firms offering similar services or products often achieve differentiation through
• Technology. The marketing strategies often adapt to the pace of development of the
consumer
Benchmark results: You can administer the same survey every so often to
customers to gain continued insight into your customers. Surveys can have the same
questions, which will allow you to compare data over time and benchmark survey data
across previous years to determine if any changes need to be made.
Show that you care: Customers like to be asked for their feedback. It gives the
customer the perception that your company values them; is committed to keeping
them as a long-term customer; and bases business decisions on their feedback.
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 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
manufactures in India. According to Macquarie equities research, sale of passenger vehicles
is expected to double in the next four years
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
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.
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.
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.
Growth of Motorcycles
It is therefore not surprising that every major player is trying to get into the
Motorcycle market to have a piece of the cake.
Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by Bajaj
with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13 percent. Now LML and
Kinetic have announced their plans to manufacture motorcycles, which are likely to come in
the market by next year. The battle is expected to be fierce but the consumer will be the
greater beneficiary.
The growth in motorcycles is slowly losing its hold. It is considered a family vehicle
but perhaps there is competition from the second hand car markets where prices have fallen
down rapidly. A1992 Maruti 800 is now available for just 70,000.
The scooter manufactures have to watch this phenomenon and bring our many new
product variants in the right price slots to sustain their shares in the market. The moped
market has been steady with an average growth of 3 percent. It is dominated by TVS which
holds 48 percent market share followed by Kinetic and Majestic Auto at 23 percent and 18
percent respectively.
In each segment, there is a wide gap between the first two contenders, which makes
their products positioning and marketing strategies most interesting. The two wheelers market
seems to be maturing. There are the usual their conventional segment of scooters, mopeds and
motorcycles. Two new segments are being created.
NewSegmentsA Step is through segment like Kinetic K4-100, Honda Street, Bajaj
M-80, which is quite close to the motorcycle segment. The other segment is scooterettes or
mini scooters in which vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj
Sunny/Sprite/Safire and LML trendy can be considered. These are vehicles under 75 cc and
largely targeted at the youth market such as college students, young boys and girls and new
couples. They get the advantage of lower excise duty at 16 percent as compared to 24
percent applicable over 75 cc. The trend is towards push button start vehicles.
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.
Hero MotoCorp Ltd enjoys tremendous brand equity in the motorcycle segment.
Kinetic Motors, another important player, managed to grow in 1999-2000, when the
scooters segments a whole slipped by around 5 percent. TVS Suzuki, a motor two-wheeler
market, has reported a growth of 13 percent in the first quarter period and sold 2.19 lakh
units. Sales of motorcycles and scooters were up by 18 percent and that of mopeds by 8
percent over the same period last year.
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 MotoCorpis 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
NEW HORIZON COLLEGE Page 18
A Study On Customer Satisfaction On Hero Moto Crop
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, customersatisfaction 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
The two-wheeler market was opened to foreign competition in the mid 80‘s. And then
the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc
bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low
power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke
bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90‘s the major growth for motorcycle segment was brought
inby Japanese motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50‘s, 60‘s and70‘s when the government
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden
growth in the 80‘s. The industry witnessed a steady growth of 14% leading to a peak volume
of 1.9mm vehicles in 1990.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in1992, resulting in the production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
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.
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.
The number of households in the low-income group has fallen since FY86 and has been more
pronounced in the post-reform period. On the other hand, the number of households in the
middle, upper middle and high-income groups that form the consumer base for twowheelers,
have increased. Their share of the total number of households has increased from 10.6% in
FY88 to 20.5% inFY96. This rising income profile however, has, been more pronounced in
the urban areas as average annual growth in industry surpassed that of agriculture in the
period FY93 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.
In Indian two-wheeler, industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country. Until
1958, API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers.
Finally, in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio
of Italy. The agreement expired in 1971.
In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter
segment. Although various Government and Private enterprises entered the fray for scooters,
the only new player that has lasted until today is LML.
Under the regulated regime, foreign companies were not allowed to operate in India.
It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto
being as high as 12 years.
The motorcycles segment was no different, with only three manufacturers via Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot
were two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the
motorcycle segment.
The two-wheeler market was opened to foreign competition in the mid 80‘s. And then
the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc
bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low
power bikes, demand swelled resulting in Hero Honda — the only producer of four-stroke
bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and
Hero Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90‘s the major growth for motorcycle segment was brought
inby Japanese motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50‘s, 60‘s and70‘s when the government
prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden
growth in the 80‘s. The industry witnessed a steady growth of 14% leading to a peak volume
of 1.9mm vehicles in 1990.
with this, the scooter segment has consistently lost its part of the market share in the
two~whee1er market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in1992, resulting in the production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
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.
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.
The number of households in the low-income group has fallen since FY86 and has been more
pronounced in the post-reform period. On the other hand, the number of households in the
middle, upper middle and high-income groups that form the consumer base for twowheelers,
have increased. Their share of the total number of households has increased from 10.6% in
FY88 to 20.5% inFY96. This rising income profile however, has, been more pronounced in
the urban areas as average annual growth in industry surpassed that of agriculture in the
period FY93
COMPANY PROFILE
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.
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.
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A Study On Customer Satisfaction On Hero Moto Crop
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.
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.
Cost
Quality
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A Study On Customer Satisfaction On Hero Moto Crop
Sustainability
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
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.
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.
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A Study On Customer Satisfaction On Hero Moto Crop
Zonal Offices
East Zone
Hero Motor Corp Ltd
3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor,
Kolkata - 700017, India.
Tel: +91-33-22810926 22810927, 22808922, 22811185
Fax: +91-33-22808923
Email: [email protected]
West Zone
Hero Motor Corp Ltd.
15-A, Bale 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: [email protected]
North Zone
Hero Motor Corp Ltd.
F-126, KatwariaSarai, Opp. Qutab Institutional Area,
New Delhi -110016, India.
Tel: +91-11-26533981-2, 47619300
Fax: +91-11-26533983
Email: [email protected]
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: [email protected]
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.
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
1983
- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
- Shareholders Agreement signed
1984
- Hero Honda Motors Ltd. Incorporated
NEW HORIZON COLLEGE Page 28
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1985
- First motorcycle "CD 100" rolled out
1987
- 100,000th motorcycle produced1989New motorcycle model - "Sleek"
introduced
1991
- New motorcycle model - "CD 100 SS" introduced
- 500,000th motorcycle produced
1992
- Raman MunjalVidyaMandir 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 prod1999
- 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
2008
- HeroHaridwar 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
2012
- 45% market share in the domestic two-wheeler market
- 56% market share in the domestic motorcycle market
- Declared a dividend of 2,250% in 2011-12, i.e. 45 per equity share of the face
value of 2 per share
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.
100ccBike category
SPLENDOR PLUS
SPLENDOR NXG
SPLENDOR PRO
PASSION PRO
PASSION XPRO
MAESTRO
PLEASURE
HF DAWN
HF DELUXE
125ccBike category
GLAMOUR
SUPER SPLENDOR
IGNITOR
Glamour PGM FI
150ccBike category
ACHIEVER
KARIZMA
KARIZMA ZMR
IMPULSE
HUNK
XTREME
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 2014) 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).
As per the arrangement, it will be a two-leg deal. In the first part, the Munjal family,
led by BrijmohanLalMunjal 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.
Environment Policy
We at Hero MotoCorp have been committed to demonstrate excellence in our environmental
performance on a continuous basis, as an intrinsic element of our corporate philosophy
To achieve this we commit ourselves to:
Integrate environmental attributes and cleaner production in all our business processes and
practices with specific consideration to substitution of hazardous chemicals and
strengthening the greening of supply chain.
Continue product innovations to improve environmental compatibility.
Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
Institutionalize resource conservation in the areas of oil, water, electrical energy, paints
and chemicals.
Safety Policy
We believe that safe work practices lead to better business performance, motivated workforce
and higher productivity.
We shall create a safety culture in the organization by:
Integrating safety and health matters in all our activities.
Promoting safety and health awareness amongst employees, suppliers and contractors.
Continuous improvements in safety performance through precautions be sides
participation and training of employees.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work
Directors
Board of Directors
Dr. BrijmohanLallMunjal
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
Sales Figures
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.
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
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.
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.
GoodLife now contributes a huge 14% to the Company‘s overall sales (purely through
referrals), in addition to incremental sales. GoodLife 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
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 GoodLife 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, GoodLife has
been the recipient of several accolades and awards on national and international platforms.
Some of these were:
‗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:
The Company‘s oldest plant at Dharuhera was in the limelight for two specific
reasons:
SWOT ANALYSIS
Strengths
1. Huge brand equity and one of the biggest players in the two wheelers Indian market
2. Excellent R&D and wide variety of products in every segment.
3. Excellent distribution, over 3000 dealerships and service centers
4. Good advertising and excellent rebranding from Hero Honda to Hero Moto Corp
Weaknesses
Opportunities
Threats
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
RESEARCH METHODOLOGY
Methodology
The information required for this study obtained was basically through two sources.
Primary Data:
The Data has been collected from 100 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:
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 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.
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.
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.
REVIEW OF LITERATURE
Customer Satisfaction
Defining customer value & satisfaction. Over 38 years ago, Peter Dhuker observed that a
company‘s first task is ―To create customers‖ However, customers face a vast array of
products and brand choices, price & suppliers. How do they make their choices?
We believe that our customers estimate which offer will deliver the most value.
Customer are value maximizes within the bounds rich costs & limited knowledge, whether or
not the offer lives up to value expectation affects both satisfaction and repurchase probability.
Our premise is that customer will buy from the firm that they see as offering the
highest perceived value. Customer perceived value (CPV) is the difference between the
prospective customers evaluation of all the benefits and all the costs of an offering & the
perceived alternatives. Total customer value is the perceived monetary value of the bundle of
economic, functional & psychological benefits customers expect from a given market
offering.
Total customers cost is the bundle of costs customers expect to incur in evaluating,
obtaining, using & disposing of the given market offering.
The link between customer satisfaction and customer loyalty is not proportional.
Suppose customer satisfaction is rated on a scale from one to five. At a very low level of
customer satisfaction (level one), customers are likely to abandon the company and even bad
mouth it. At levels two to four, customers are fairly satisfied but still find it easy to switch
when a better offer comes along. At level five, the customer is very likely to repurchase
NEW HORIZON COLLEGE Page 45
A Study On Customer Satisfaction On Hero Moto Crop
&even spread good word or delight creators an emotional bond with the brand or company
not just a rational preference.
Measuring satisfaction although the customer centered firm seek to create high
customer satisfaction, that is not its main goal. If the company increases customer satisfaction
by lowering its price or increasing its service, the result may be lower profits.
The company may be able to increase its profitability by means other than increased
satisfaction (for example, by improving manufacturing processes or investing more in R&D)
Also, the company has many stake holders including employers, dealers, suppliers, & stock
holder. Spending more to increase customer satisfaction might divert funds from increasing
the satisfaction of their ―Partners‖. Ultimately, the company must operate on the philosophy
that it is trying to deliver a high level of customer satisfaction subject to delivering acceptable
levels of satisfaction to the other stakeholders, given its total resources.
Attracting Customers
Today customers are becoming harder to please. They are smarter, more price
conscious, more demanding, less forgiving, & they are approached by many more
competitors with equal or better offers. The challenge, according to Jeffery Gitomer is not to
produce statistical customers; several competitors can do this. The challenge is to produce
delighted & loyal customers.
Companies seeking to expand their profits & sales have to spend considerable time
and resources searching for new customer. To generate leads, the company develops ads &
places them in media that will reach new prospects, it sends direct mail & makes phone calls
to possible new prospects; its sales people participate in made shows where they might find
new leads; & so on. All this activity produces a list of suspects.
To motivate its employees to serve the customers well, it displays the following poster
prominently around its office.
Who is a Customer?
A customer is the most important person ever in this office……. In personal by mail.
We are not doing a favor by serving him …….. he is doing a favor by giving us the
opportunity to do so.
A customer is not someone to argue. Or match wins with. Nobody ever won an
argument with the customer.
A customer is a person who brings us his wants. It is our job to handle them profitably
& to ourselves.
Companies that want to form strong customer bonds need to attend to the following
basics.
Create superior products, services, and experiences for the target market.
Make it easy for customer to reach appropriate company personnel and express their
needs perceptions and complaints.
establish hotlines with toll free numbers. Companies are also using web & E-mail for quick,
two- way communication.
Host Shopping
Companies can hire people to pose as potential buyers to report on strong & weak
points experienced in buying the company‘s & competitor products. These shoppers can even
test how the companies‘ sales person handles various situations. Managers themselves should
leave their offices from time to time, entire company and competitors sales situations where
they are unknown, & experience first hand treatment they receive. A variant of this is for
managers to phone their own company with questions & complaints to see company with
questions & complaints to see how the calls are handled.
Customer delivered
value
LIMITATIONS
I have observed the following limitations in the course of my study.
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.
3. Since the study involved in gathering information was from upper to higher-middle
class people, interaction with them became difficult.
4. There may be respondent‘s bias.
5. Even though utmost care has been taken in conducting the survey, the findings may
sometimes differ from the population.
6. The study is conducted of academic nature
7. The split happened 4 year before, the study not giving the long run result of Hero
Motors Bikes
IMPULSE
1%
HF DAWN
1%
PASSION XPRO
SPLENDOR 9%
NXG SPLENDOR
5% PLEASURE PLUS
6% 25%
SUPER
SPLENDOR
2%
MAESTRO
3%
KARIZMA
1% SPLENDOR PRO
10%
KARIZMA
ZMR
2%
GLAMOUR
3% HUNK
2% PASSION PRO
30%
Inference:-From the above table it is inferred that, 30% of respondents held Passion Pro and
25% of respondents held Splendor Plus, Splendor Pro 10%, and Passion Xpro 9%. The
remaining two wheelers are very less in %. The table is inferred that some of the models are
very less in market. This formed the basis of the study.Chart 4.1Showing type of Hero two
wheeler models owned in %
4.2 showing thesource of information about HeroHow the people will prefer to buy the
two wheelers? While seeing
Newspaper ads 9
Television ads 57
Roadside Boarding‘s 14
Others 20
Total 100
9%
20%
14%
57%
Inference:
From the above table it is inferred that people are getting information about hero two
wheelers from television ads, more than 50% of people are watching TV ads. Roadside
Boarding &news paper are less in performance; other sources contain motor shows, internet
ads.
Family 34
Own 16
35
Friend
15
Sales representative
Total 100
40
34 35
35
30
25
20 16 15
15
10
5
0
family Own friend Sales representative
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
100cc 17 Blue 23
125cc 28 Red 24
150cc 35 Black 39
200cc 20 Other 14
40 35
30 28
20
20 17
10
0
100 cc 125cc 150cc 200cc
50
39
40
30 23 24
20 14
10
0
Blue Red Black Other
Inference: -
From the above table it is observed that, the bike ‗cc‘ preference is deferent customer
to customer but the 35% people like 150cc bike and 28% like 125cc, 200cc bike 20% others
100cc.e preference of color ‗BLACK‘ is rating at near to 40% of people after that 24% like
Red color 23% Blue also . Other color like white gettingless importance in selection
No (not on time) 22
Total 100
22%
78%
Inference: -
When the people visits showroom the company will offer test drive to customer are not?
Yes 92
No 8
Total 100
8%
92%
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
Excellent 16
Good 23
Moderate 21
Satisfactory 39
Unsatisfactory 1
Total 100
45
39
40
35
30 Excellent
Good
25 23
21 Moderate
20
16 Satisfactory
15 unsatisfactory
10
5
1
0
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.
Completely Satisfied 34
Satisfied 39
Dissatisfied 12
Total 100
39
40
34
35
Completely satisfied
30
satisfied
25
20
15 dissatisfied
15 12
10
Not at all satisfied
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
Yes 74 74%
NO 26 26%
No
26%
Yes
74%
Inference:-
From the above table it is observed that, the customers are influenced by the brand name
―HERO MOTOCROP‖ 74% of respondents are influence by the brand name and 26% are not
the brand ―HERO‖ is the most selling bike in India and Its is the brand that selling more bike
in the world also
Why does the people shows preference to buy hero two wheelers?
Quality 25 25%
Price 20 20%
35
31
30
25 24
25
20
20
15
10
0
Quality Price Brand ImageFuel efficiency
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.
Table - 4.11 showing how long customer using hero two wheeler
How much time period does the customer drive the hero two wheelers?
6-9 month 23
9 -1 year 32
TOTAL 100
Chart 4.11 showing how long customer using hero two wheelers
21
32
23
24
0 5 10 15 20 25 30 35
Inference:-
From the above table we can infer that how long the customer holds the bike the split
between Hero and Honda happen less than 3 year back and this table help to know the using
period of customer 79% of people that in the research is brought their bike in the last year and
21% is using the bike more than 1 year
Service in time 31
Reliable service 16
TOTAL 100
Chart 4.12 showing the area that Customer demanding to improve in servic
Chart Title
35
31
30 27 26
25
Service in time
20
16
Reliable service
15
Well trained mechanics
10
less labor charge
5
0
Category 1
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.
No. Of Respondents in
Responses
%
Delay in service 29
No problems 28
TOTAL 100
High price
No problems spare parts
28% 29%
Low quality of
Delay in service spare parts
29% 14%
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
How the company showing their performance of Hero Motors at the time of service?
Good 20 20%
Average 32 32%
Bad 8 8%
Very Bad 6 6%
Chart Title
40
35 34
32
30
25 Very good
20 Good
20
Average
15 Bad
Very Bad
10 8
6
5
0
Response
Inference:-
From the above table it is observed that, 34% of customer says service performance
gives by Hero MotoCorp Ltd, Is very good and 20% says it‘s good , 32% says the service is
average,8 respondents says the service is bad and 6% says it‘s very bad, To overall we can
conclude that more than 85% is satisfied with the service provide by Hero MotoCorp Ltd.
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 companieshave posted growth of 11.28% in
the month of May 2015 compared to May 2014.
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.
SUGGESTIONS
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.
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 want 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.
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.
BIBLIOGRAPHY
Books
House2012 edition
Web Links:
www.heromotocrop.com
www.iamai.in
www.wikipedia.com
QUESTIONNAIRE
Dear Sir, madam
I am P HARISH KUMAR BBM 6th semester studentof NEW HORIZON COLLEGE,
undertaking a project title A STUDY ON CUSTOMER SATISFACTION ON HERO MOTO
CROP PVT.LTD I will be grateful to your if you could spare your precious time for
answering the questionnaire I promise you the information collected here will be confidential
and it is strictly used for academic purpose only.
QUESTIONNAIRE
1. Name:
2. Gender:
3. Age:
4. Contact no:
A] Yes B] May be C] No
A] Yes B] No
If No please specify…………………………..
A] Yes B] No
Q11] Do you find the display of all the latest versions of Hero Motors?
A]Yes B] No
Q12 When the people visits showroom the company will offer test drive to customer is not
A] Yes B] No