Hero Motors customer satisfsction

A studyon CustomerSatisfactionon Hero MotoCorp
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1.1 HISTORY OF MOTORCYCLES
The first commercial design for a self-propelled bicycle was a three-wheel design
called the Butler Petrol Cycle, conceived of Edward Butler in England in 1884.
He exhibited his plans for the vehicle at the Stanley Cycle Show in London in
1884. The vehicle was built by the merry weather Fire Engine Company in
Greenwich, in 1888.
The Butler Petrol Cycle was a three-wheeled vehicle, with the rear wheel directly
driven by a 5/8hp (466W) 600 cc (40 in3; 2¼×5-inch {57×127-mm}) flat twin
four stroke engine (with magneto ignition replaced by coil and battery) equipped
with rotary valves and a float-fed carburettor (five years before Maybach) and
Ackermann steering, all of which were state of the art at the time. Starting was
by compressed air. The engine was liquid-cooled, with a radiator over the rear
driving wheel. Speed was controlled by means of a throttle valve lever. No
braking system was fitted; the vehicle was stopped by raising and lowering the
rear driving wheel using a foot-operated lever; the weight of the machine was
then borne by two small castor wheels. The driver was seated between the front
wheels. It wasn't, however, a success,as Butler failed to find sufficient financial
backing.
Another early internal combustion, petroleum fuelled motorcycle was the
Daimler Reitwagen. It was designed and built by the German inventors Gottlieb
Daimler and Wilhelm Maybach in Bad Cannstatt, Germany in 1885. This vehicle
was unlike either the safety bicycles or the boneshaker bicycles of the era in that
it had zero degrees of steering axis angle and no fork offset, and thus did not use
the principles of bicycle and motorcycle dynamics developed nearly 70 years
earlier. Instead, it relied on two outrigger wheels to remain upright while turning.

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The inventors called their invention the Reitwagen ("riding car"). It was designed
as an expedient test bed for their new engine, rather than a true prototypevehicle.
Many authorities who exclude steam powered, electric or diesel two-wheelers
from the definition of a motorcycle, credit the Daimler Reitwagen as the world's
first motorcycle.
If a two-wheeled vehicle with steam propulsion is considered a motorcycle, then
the first was the French Michaux-Perreaux steam velocipede of 1868. This was
followed by the American Ropersteam velocipede of 1869, built by Sylvester H.
Roper Roxbury, Massachusetts. Roper demonstrated his machine at fairs and
circuses in the eastern U.S. in 1867, and built a total of 10 examples.

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1.2 SUMMARY OF EARLY INVENTIONS
Year Vehicle
Number
of wheels
Inventor
Engine
type
Notes
1867–
1868
Michaux-
Perreaux
steam
velocipede
2
Pierre
Michaux
Louis-
Guillaume
Perreaux
Steam  One made
1867–
1868
Roper steam
velocipede
2
Sylvester
Roper
Steam  Ten made
1884
Butler Petrol
Cycle
3 (plus 2
castors)
Edward
Butler
Petroleum
internal-
combustion
1885 Reitwagen
2 (plus 2
outriggers)
Gottlieb
Daimler
Wilhelm
Maybach
Petroleum
internal-
combustion
 One made
1894
Hildebrand
& Wolf
Müller
2
Heinrich
Hidebrand
Wilhelm
Hidebrand
Alois Wolf
Müller
Petroleum
internal-
combustion
 Modern
configuration
 First machine
to be called
"motorcycle"

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1.3 GROWTH AND EVOLUTION
First motorcycle companies
Diagram of1894 Hildebrand &
Wolf Müller.
In 1894, Hildebrand & Wolf
Müller became the first series
productionmotorcycle, and the
first to be called a motorcycle
(German: Motorrad). Excelsior
Motor Company, originally a
bicycle manufacturing company based in Coventry, England, began production
of their first motorcycle model in 1896. The first production motorcycle in the
US was the Orient-Aster, built by Charles Metz in 1898 at his factory in Waltham,
Massachusetts.
In the early period of motorcycle history, many producers of bicycles adapted
their designs to accommodatethe new internal combustionengine. As the engines
became more powerful and designs outgrew the bicycle origins, the number of
motorcycle producers increased. Many of the nineteenth century inventors who
worked on early motorcycles often moved on to other inventions. Daimler and
Roper, for example, both went on to develop automobiles.
At the turn of the century the first major mass-production firms were set up. In
1898, Triumph Motorcycles in England began producing motorbikes, and by
1903 it was producing over 500 bikes. Other British firms were Royal Enfield,
Norton and Birmingham Small Arms Company who began motorbike production
in 1899, 1902 and 1910, respectively. Indian began production in 1901 and
Harley Davidson was established two years later.

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First World War
Triumph Motorcycles Model H,
mass-produced for the war effort
and notable for its reliability
During the First World War,
motorbike production was greatly
ramped up for the war effort to
supply effective communications
with front line troops. Messengers
on horses were replaced with despatchriders on motorcycles carrying messages,
performing reconnaissance personnel and acting as a military police. American
company Harley-Davidson was devoting over 50% of its factory output toward
military contract by the end of the war. The British company Triumph
Motorcycles sold more than 30,000 of its Triumph Type H model to allied forces
during the war. With the rear wheel driven by a belt, the Model H was fitted with
a 499 cc (30.5 cu in) air-cooled four-stroke single-cylinder engine. It was also the
first Triumph without pedals.
Triumph Motorcycles Model H, mass-produced forthe war effort and notable for
its reliability During the First World War, motorbike production was greatly
ramped up for the war effort to supply effective communications with front line
troops. Messengers on horses were replaced with despatchriders on motorcycles
carrying messages, performing reconnaissance personnel and acting as a military
police. American company Harley-Davidson was devoting over 50% of its
factory output toward military contract by the end of the war. The British
company Triumph Motorcycles sold more than 30,000 of its Triumph Type H
model to allied forces during the war.

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Post war
By 1920, Harley-Davidson
was the largest manufacturer
with their motorcycles being
sold by dealers in 67 countries.
By the late 1920s or early
1930s, DKW in Germany took
over as the largest
manufacturer. NSU Sportmax
streamlined motorcycle, 250
cc class winner of the1955 Grand Prix season
After World War II, the Birmingham Small Arms Company became the largest
producer of motorcycles in the world, producing up to 75,000 bikes per year in
the 1950s. The German company NSU held the position of the largest
manufacturer from 1955 until the 1970s.
In the 1950s, streamlining began to play an increasing part in the development of
racing motorcycles and the "dustbin fairing" held out the possibility of radical
changes to motorcycle design. NSU and Moto Guzzi were in the vanguard of this
development, both producing very radical designs well ahead of their time. NSU
produced themost advanced design, but after the deaths offour NSU riders in the
1954–1956 seasons, they abandoned further development and quit Grand Prix
motorcycle racing.
From the 1960s through the 1990s, small two-stroke motorcycles were popular
worldwide, partly as a result of East German Walter Kaaden's engine work in the
1950s.

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1.4 PROSPECTS FOR FUTURE
Since the first motorcycle was built, the two wheel transportation device has had
many sources of power, including the first steam powered machines. It was not
until World War II that gas powered motorcycles became common place. Now
the pentagon is developing a new military hybrid motorcycle that promises to be
fast, powerful and silent. By creating this stealth cycle, the government has
inadvertently pushed the envelope of alternative fuel motorcycles.
The Hybrid Electric
The motorcycle in development by the Defence Advanced Research Projects
Agency will have a hybrid diesel/electric engine. In stealth mode, the bike will
run on battery power and make little sound. When the driver needs more power
for speed, he can switch over to a special diesel fuel engine.
Air Powered With No Sails
Concept bikes are universally coolbut often do not make it to mass production.
Trying to repair a conceptvehicle, let alone finding inexpensive motorcycle parts
online, can be quite the task. That is why the air powered motorcycle designed by
Edwin Conan may be relegated to the cool but impractical file. The machine,
known as the Green Speed Air Powered Motorcycle, is the epitome of green
technology as it is powered by compressed air. The idea is to have solar panels
that can generate the energy to compress the ambient air and store it in fiberglass
tanks. The top speed is only limited by the pressure capacity of the tank.
Water Power
Hydrogen cells use catalysed anodes to liberate an electron from the hydrogen
atom. This free electron is used to power an electric motor and the ionized atom
reacts with oxygen to form water. Hydrogen cells have become a hot topic for
green car manufacturers.

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1.5 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;somecategories 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

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 Fifth largest bus and truck segment
The sectorhas 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
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 todayhas 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
byBAJAJ AUTO. It is however facing stiff competition from LML, which offers

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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 percentand 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

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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 costofloans, which
will help in boostingsales of2-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 surpassed thescootersales 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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1.6 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 productvariants 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 bematuring. There are the usual their conventional
segment of scooters, mopeds and motorcycles. Two new segments are being
created.

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1.7 MARKETING
Marketing is based onthinking about the business in terms ofcustomer needs and
their satisfaction. Marketing differs from selling because(in the words ofHarvard
Business School's retired professor of marketing Theodore C. Levitt)
"Selling concerns itself with the tricks and techniques of getting people
to exchange their cash for your product. It is not concerned with the values that
the exchange is all about. And it does not, as marketing invariable does, view the
entire business process as consisting of a tightly integrated effort to
discover, create, arouse and satisfy customer needs." In other words, marketing
has less to do with getting customers to pay for your product as it
does developing a demand for that product and fulfilling the customer's needs.
1.8 CUSTOMER
A customer is usually used to refer to a current potential buyer or user of the
products ofan individual organization, called the supplier, seller or vendor. This
is typically through purchasing renting goods or services. However, in certain
contexts, the term 'customer' also includes by extension any entity that Uses or
experiences the service of another.
A customer may also be a viewer of the product or service that is being sold
despite deciding not to buy them. The general distinction between a customerand
a client is that a customer purchases product whereas a client purchase service.

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Types of customer
Customers can be of following types:
1. Loyal Customers- These types of customers are less in numbers but promote
more sales and profit as compared to other customers as these are the ones which
are completely satisfied. These customers revisit the organization over times
hence it is crucial to interact and keep in touch with them on a regular basis and
invest much time and effort with them. Loyal customers want individual
attention and that demands polite and respectful responses from supplier.
2. DiscountCustomers- Discount customers are also frequent visitors but they are
only a part of business when offered with discounts on regular products and
brands or they buy only low cost products. More is the discount the more they
tend towards buying. These customers are mostly related to small industries or
the industries that focus on low or marginal investments on products. Focus on
these types of customers is also important as they also promote distinguished
part of profit into business.
3. Impulsive Customers- These customers are difficult to convince as they want
to do the business in urge orcaprice. They don’thave any specific item into their
productlist but urge to buy what they find good and productive at that point of
time. Handling these customers is a challenge as they are not particularly
looking for a product and want the supplier to display all the useful products
they have in their tally in front of them so that they can buy what they like from
that display. If impulsive customers are treated accordingly then there is high
probability that these customers could be a responsible for high percentage of
selling.
4. NeedBasedCustomers-Thesecustomers are productspecific and only tend to
buy items only to which they are habitual orhave a specific need forthem. These
are frequent customers but do not becomea part of buying most of the times so

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it is difficult to satisfy them. These customers should be handled positively by
showing them ways and reasons to switch to other similar products and brands
and initiating them to buy these. These customers could possibly be lost if not
tackled efficiently with positive interaction.
5. Wandering Customers-These are the least profitable customers as sometimes
they themselves are not sure what to buy. These customers are normally new in
industry and mostof the times visit suppliers only for confirming their needs on
products. They investigate features of most prominent products in the market
but do not buy any of those or show least interest in buying. To grab such
customers they should be properly informed about the various positive features
of the products so that they develop a sense of interest.

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1.9 MEANING OF CUSTOMER SATISFICATION
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 ofbusiness strategy customersatisfaction drives successfulprivate 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 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 neighbourhoods 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.

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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 fulfil 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 one a 'satisfied' customer tells 5-7 people in a year whilst a 'dissatisfied'
customer will tell 14-15 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.
 Customers who have an opportunity to complain and the complaint is
achieved are 95% likely to still do business with you.

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1.10 CUSTOMER SATISFACTION MODEL
The customer satisfaction model is a micro level framework it links extended Ps
(people & performance), and reflects the impacts of the traditional Ps (product,
price, place and promotion).
WHILE conceptually simple, the frame work captures the essence of marketing:
(a) Generate customer satisfaction by meeting, or better yet exceeding, customer
requirements and expectation, i.e. delivering superior relative perceived value.
(b) A mass satisfied (and profitable) customer into substantial share of the
relevant served market.
(c) Leveraging the market share into high profitability via scale of economies.
CUSTOMER SATISFACTION MODEL
CUSTOMER
SATISFACTION
MARKET
SHARE
PROFITS

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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.
1.11 Ways to measure Customer satisfaction
1. DirectMethods: Directly contacting customers and getting their valuable
feedback is very important.
Following are some of the ways by which customers could be
directly tabbed:
a) Getting customer feedback through third party agencies.
b) Direct marketing, in-house call centres, complaint handling department
could be treated as first point of contact for getting customer feedback.
These feedbacks are compiled to analyse customers’ perception.
c) Getting customer feedback through face to face conversation or meeting.
d) Feedbackthrough complaint or appreciation letter.
e. Direct customer feedback through surveys and questionnaires.

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2. Indirect Method: The major drawback of direct methods is that it turns out to
be very costly and requires a lot of pre compiled preparations to implement. For
getting the valuable feedbacks the supplier totally depends on the customer due
to which they loses options and chances to take corrective measure at correct
time. Hence there are other following indirect methods of getting feedback
regarding customer satisfaction:
a. Customer Complaints: Customer’s complaints are the issues and problems
reported by the customer to supplier with regards to any specific product or
related service. These complaints can be classified under different segments
according to the severity and department. If the complaints under a particular
segment go high in a specific period of time then the performance of the
organization is degrading in that specific area or segment. But if the complaints
diminish in a specific period of time then that means the organization is
performing well and customer satisfaction level is also higher.
b. Customer Loyalty: It is necessarily required for an organization to interact
and communicate with customers on a regular basis to increase customer loyalty.
In these interactions and communications it is required to learn and determine all
individual customerneeds and respond accordingly. A customeris said to be loyal
if he revisits supplier on regular basis for purchases. These loyal customers are
the satisfied ones and hence they are bounded with a relationship with the
supplier. Hence by obtaining the customer loyalty index, suppliers can indirectly
measure customer satisfaction.

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2.1 TITLE OF STUDY
“A study on customer satisfaction with reference to Hero MotoCorp”
2.2 STATEMENT OF PROBLEM
The two wheeler segment is a very competitive market that has become for the
company to have effective customer satisfaction. The project has described the
effectiveness of customer satisfaction at satyom hero in view of the tough
competition the company has to face in the market. The method of customer
satisfaction of the company and its effectiveness is creating awareness among
people to identify and analysis the customer needs.
Methodology may be a description of process, or may be expanded to include a
philosophy coherent collection of theories, concepts or ideas as they relate to a
particular discipline or field of inquiry.
2.3 OBJECTIVE OF STUDY
The following are the objectives of the study
1. To understand the customer behavior towards purchase of 2 wheeler.
2. To understand the level of customer satisfaction about the Hero bikes.
3. To studythe customerattitudes towards various brands of hero MotorCop.
4. To suggest suitable recommendation for improving the level of customer
satisfaction

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2.4 NEED OF THE STUDY
1. Hero MotoCorp ltd is a leading two wheeler manufacturing brand. Need to
analyze customer satisfaction towards brand.
2. Since it is a competitive market with the intervention of international
brand, this study will tell you the market status of the brand.
2.5 SCOPE OF THE STUDY
This study includes direct interaction with the customer and helps us to know the
“market potential and customer satisfaction level’ to greater accuracy.
This study is of great importance to the company which will know about the
customer preference to buy a particular brand.
So scopeofthe study is to achieve customer satisfaction and quality maintenance
is company’s primary objective.
The method adopted for data collection required for this research is the survey
method. Thus a questionnaire was prepared consisting ofsimple question and was
distributed among 50 customers of hero motors.
2.6 Methodology
The methodology adopted was the survey and the sample method. The primary
data collected from the users from the personal as well as information collected
through questionnaires. Secondary method used to collect information from the
company books, internet, staff of the store, etc.

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2.7 Sampling Technique:
The sampling technique used in this research is convenience sampling it is a
statistical method of drawing representative data by selecting people because of
the ease of their volunteering or selecting units because of their availability or
ease access the advantage of this type of sampling are the availability or easy
access. The advantage of this type of sampling are the availability and the
quickness with which data can be gathered. The disadvantage are the risk that the
sample might not represent the population as a whole, and it might be biased by
volunteers. A convenience sample is simply one where the units that is in stark
contrast in the sample are the easiest to access. This is the stark contrast to
probability sampling technique where the selection of units is made randomly.
Sample size
The numbers of respondent were limited to 50 customer at satyom motors.

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2.8 Tools for data collection
Primary data
Primary data is the data which is collected by the research directly from his own
observation and experience. For example, if the research conducted a survey for
the collected of data then its known as primary data.
The method used for the collection of primary data is questionnaire method.
Questionnaire Method
For the purpose of the project, first-hand information was used in form of a
structural questionnaire on the bases the service, company name and other
possible aspects of the company. The questioner contained 1question. The
respondent had to write or select the option they felt appropriate after the
questioner was designed, the fieldwork was organized. The questioner was
distributed personally. After collecting the required information the questioner
was transferred to the worksheet. A master table was prepared. The findings were
finally recorded and the data was represented graphically.
Secondary Data
Secondary data is data collected by someone other than the user. Common
sources of secondary data for social science include censuses, organizational
records and data collected through qualitative methodologies or qualitative
research. Primary data, by contrast, are collected by the investigator conducting
the research. Secondary data analysis saves time that would otherwise be spent
collecting data and, particularly in the case of quantitative data, provides larger
and higher-quality databases that would be unfeasible for any individual
researcher to collect on their own. In addition, analysts of social and economic

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change consider secondary data essential, since it is impossible to conducta new
survey that can adequately capture past change and/or developments
2.9 Reference Period
The information gathered and compiled for this research was approximately for
2 months in January and March.
2.10 Plan of Analysis
Processing and analysis of data was made from responses to each question. The
response was tabulated and analysed through percentage analysis etc. the
collected data has been represented in form on tables and charts.
2.11 Limitation of study
The following are the limitation which where encountered during the period in
which the research was done.
 The sample Size is restricted to only 50 people. This is small selected
selection people.
 The study was limited to one region (Bangalore)
 The research is very time consuming process.
 People were hesitating to fill up the forms and out of 10 only 1 people fills
the form.

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2.12 AN OVERVIEW OF THE CHAPTER SCHEME:
Chapter 1: Introduction:
This chapter provides a background to the topic keeping in mind the definition,
scope, objectives, needs, purpose, etc. under the study of company’s financial
performance.
Chapter 2: Research design:
This chapter provides a bird’s eye view of the study. It contains the statement of
problem, scope of study, objectives of the study and operational definitions.
Chapter 3: Profile of the company:
This chapter gives detailed information about the company.
Chapter 4: Analysis and Interpretation:
This is where the collected data is represented in the form of tables and graphs.
And an interpretation is derived from the analysis.
Chapter 5: Summary of findings, Conclusions and Suggestions:
This chapter provides a summary on the findings and conclusions derived from
the previous chapters. And provide suggestions.

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3.1 Introduction
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 2-wheeler category. The 2006 Forbes 200 Most Respected
companies list has Hero Honda Motors ranked at 108. On 31 March 2013, the
market capitalization of the company was INR 308 billion (USD 5.66 billion)
Hero Honda started in 1984 as a joint venture between 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.
Hero MotoCorp is now world’s largest manufacturer of two-wheelers. The
company has benefited from the demand shift to motorcycles, as it focuses solely
on this product segment (although has a product called Pleasure in Scooter
segment). With fuel efficiency and riding comfort as the main selling points,
HMC has been able to address a wide market and postrobust sales growth even
after its separation from the Japanese major Honda.

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3.2 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.
 2007—New Models of Hero Honda motorcycle SplendorNXG, New Models
of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.

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 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 Masculine 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)
 2014-Pleasure and i3S & in new Splendor iSmart.

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3.3 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.
3.4 MISSION
Hero MotoCorp's missionis to becomea 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.
3.5 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.
3.6 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

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and the latest manufacturing plant are based at Haridwar, in the hill state of
Uttrakhand.
3.7 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
companyto launch the Fuel Injection (FI) technology in Indian motorcycles, with
the launch of the Glamour FI in June 2006.
Its plants useworld class equipment and processes and havebecome a benchmark
in leanness and productivity.
Hero MotoCorp, in its endeavour to remain a pioneer in technology, will continue
to innovate and develop cutting edge products and processes
3.8 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'sextensive sales and service network now spans overto 5000 customer
touch points. These comprise a mix of authorized dealerships, service & spare
parts outlets and dealer-appointed outlets across the country.
3.9 SUPPLY CHAIN MANAGEMENT
As the Company prepares to producea wider range of products, efforts are being
taken to align the supply chain and prime up its supplier base. During the year,

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the Company kick-started the process ofmigrating 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 costeffectively and efficiently is known to be a key sourceof
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 combatinflation. 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.
3.10 BRAND
The new Hero is rising and is poised to shine onthe global arena. Company's new
identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus

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onmobility 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.
3.11 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 ScooterIndia (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

34 | P a g e
partner's uneasiness over high royalty pay-outs 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 Brijmohan Lal Munjal group, will form an overseas-incorporated
special purpose vehicle (SPV) to buy out Honda's entire stake, which will be
backed by bridge loans. This SPV would eventually be thrown open for private
equity participation and those in the fray include Warburg Pincus, Kohlberg
Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014
for existing as well as future models.
Hero No. 1 and going strong
When Hero parted ways with Honda three years ago, there were a whole lot of
people who thought it was all over for the Munjals-promoted group.
If the numbers of 2013-14 are anything to go by, these naysayers would probably
have to eat their words. Hero MotoCorp wrapped up with sales of 6.25 million
bikes and scooters, considerably ahead of its former Japanese partner’s tally of

35 | P a g e
3.72 million units. Bajaj Auto followed with 3.42 million with TVS Motor just
short of the two million-unit mark (1.99 million).
Industry sources sayHero will sit pretty so long as its killer duo, the Splendorand
Passion, continue to catch the eye of the market. “Sure, they have been around
for years but buyers don’tseem to mind,” an executive from a rival two-wheeler
company said. These two brands account for nearly 60 per cent of Hero
MotoCorp’s sales and are going as strong as ever.
3.12 Expansion
Yet, there is no denying the fact that Honda is already proving to be a serious
adversary. At the time of its split with Hero, it only had one plant in Haryana
which was churning out 1.6 million bikes/scooters annually. Since then, the
company has added Rajasthan, Karnataka and Gujarat to its expansion plans. In
the following weeks, its capacity will reach 4.6 million units and, following the
commissioning of the Gujarat facility, this will be close to six million units.
This remarkable buildup will happen in the next 18 months which means Honda
will quickly bridge the gap with Hero unless the latter manages to replicate this
kind of a feverish pace. By the end of 2015-16, Honda is targeting 40 per cent of
the market and is likely to take the top slot very soon thereafter.
It will also be interesting to see what Bajaj Auto has up its sleeve while the tug-
of-war between Hero and Honda intensifies in the coming months. The Pune-
based company has reiterated that it will focus on its Pulsar and Discover brands
in motorcycles while leveraging KTM both here and overseas. Bajaj will also
continue to focus onbuilding its exports business which could take up 50 per cent
of its volumes in the next couple of years.

36 | P a g e
Indeed, scooters have been the biggest growth story of 2013-14 as evident in the
portfolio of Honda, Hero, TVS, Yamaha and Suzuki. The notable exception to
this list is Bajaj, once synonymous with the traditional geared scooter. The
company is categorical that it will stick to motorcycles which form a larger part
of the global canvas. Will it change its mind about scooters in the near future?
This remains the million dollar question.

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3.13 ORGANISATIONAL CHART OF HERO MOTO CORP.

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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. Pradeep Dinodia Director
Gen. (Retd.) V. P. Malik Director
Mr. Analjit Singh Director
Dr. Pritam Singh Director
Mr. M. Damodaran Director
Mr. Ravinath Director
Dr. Anand C.Burman Director
Dr. Brijmohan Lal 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 ofthe Board ofthe Country's Central Bank (Reserve Bank ofIndia).
In recognition of his contribution to industry, Mr. Munjal was conferred the
Padma Bhushan Award by the Union Government.

39 | P a g e
3.14 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'' Companybecause 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 CorporateGovernance. 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.
3.15 CORPORATE SOCIAL RESPONSIBILITY
HOCKEY
Hockey is India's national sport, and Hero is committed to doing its part to
promote and popularize the sport. In 2010, Hero MotoCorp extended its support
to Hockey by sponsoring the 'Hockey World Cup 2010' that was held in India. 2
years after this, Hero Motocorp was also the sponsorofthe 'FIH Road to London
2012' tournament.
The company is proud to associate with, and will continue to endorse this great
sport in the future.

40 | P a g e
GOLF
Hero MotoCorp, took over title sponsorship of the World Challenge. The Hero
World Challenge is an offseasongolf tournament hosted by Tiger Woods, which
takes place in December at Sherwood Country Club, a course designed by Jack
Nicklaus, in Thousand Oaks, California. It features a small number (currently 18)
of top-ranked golf pros.
CRICKET
Our association with cricket goes a long way. Hero MotoCorp has in the past
sponsored major cricket tournaments in association with International Cricket
Council (ICC), including the cricket World Cup and the Champions Trophy. Hero
has also been associated with IPL.
SPORTS ACCESSORIES
Wouldn't you love to play your favourite shots of cricket with the bats that
Virender Sehwag prefers? 'Hero' customcricket bats that Sehwag loves, available
in Kashmir and English Willow, nurtured in India, can now be purchased at select
Hero MotoCorp dealerships and distributors across the country.
Kashmir Willow bats require constantknocking and oiling to strengthen it for use
in a cricket match. Knocking is done to compress the fibres of the willow blade
together which helps the bat bear the impact of the ball. English Willow nurtured
in India is by nature a soft fibrous wood. Its natural moisture and ability to be
pressed in the manufacturing process gives great ball striking qualities.
GRADING POSITIVES
Market leadership, strong brand equity, professional management, high operating
efficiency and established scale economies. Strong financial profile characterized

41 | P a g e
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 onmacro-
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.
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, Karzima (rs above
50000) for the uppersegment ofthe 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 endeavour is to support the company's mandate of providing highest
level of customer satisfaction by taking good care of customer’s two-wheeler

42 | P a g e
service and maintenance through their vast network ofmore 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
“customertouch 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.
3.16 Goodlife: Customer Loyalty Program
GoodLife 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 GoodLife Program has enabled the Company build a consolidated base of10
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. 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 baseshot up 16%, with new 4.51 million transactions being undertaken.

43 | P a g e
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. Someofthese are: transaction-based
rewards, exclusive event invites, personalaccidental 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 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

44 | P a g e
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 mass-
production
 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
The Company continues to set new industry benchmarks in the areas of energy
conservation and sustainability. Vapour absorption machines and heat recovery

45 | P a g e
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.
3.17 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 CATRGORIES ACCORDING TO CC.
100cc 125cc 150cc andabove
 SPLENDOR PLUS
 SPLENDOR NXG
 SPLENDOR PRO
 SPLENDOR I
SMART
 PASSION PRO
 PASSION XPRO
 MAESTRO
 PLEASURE
 HF DAWN
 HF DELUXE
 GLAMOUR
 SUPER
SPLENDOR
 IGNITOR
 Glamour PGM FI
 ACHIEVER
 KARIZMA
 KARIZMA
ZMR
 IMPULSE
 HUNK
 XTREME

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3.18 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 ScooterIndia (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 pay-outs to the Japanese company. Another
major irritant for Honda was the refusal of Hero Honda (mainly managed by the

47 | P a g e
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 Brijmohan Lal Munjal group, will form an overseas-incorporated
special purpose vehicle (SPV) to buy out Honda's entire stake, which will be
backed by bridge loans. This SPV would eventually be thrown open for private
equity participation and those in the fray include Warburg Pincus, Kohlberg
Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.
Honda will continue to provide technology to Hero Honda motorbikes until 2014
for existing as well as future models.

48 | P a g e
4.1 Analysis and Interpretation
 Under this section of the project, the questionnaire circulated is thoroughly
analysed and interpreted, based on which suggestions and
recommendations will be given which would help hero in strengthening
their customer base.
 All questions asked are analysed below and graphically represented and
each question and response is analysed and results interpreted.
 This section of the project holds immense importance as in, it depicts the
level of customer satisfaction towards the Hero product.
 All questions asked in the questionnaire are analysed and the Interpretation
are drawn below.

49 | P a g e
4.1(a) Table showing the age group of the respondent
Age group No. of Respondents Percentage
20-25 years 5 10%
25-35 years 16 32%
35-45 years 21 42%
Above 45 years 8 16%
Total 50 100%
Analysis -
From the following table it can be analysed that the 42% of the respondent belong
to 35-45 years age group, 32% of the respondent belong to 25-35 years age
group,16% of the respondent belong to above 45 years age group,10% of the
respondent belong to 20-25 years of age group.

50 | P a g e
4.1(b) Chart showing the age group of the respondent
Interpretation:-
From the following graph it can be concluded that the percentage of people is
more in age group 35-45 years that is middle age people that are very attached to
the company. The remaining 20-25 years are youth that are more towards
international companies.
20-25 years
10%
25-35
32%
35-45
42%
Above 45
16%
Percentage

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4.2(a) Table showing the different level of income group of the
respondent.
Income group No. of Respondents Percentage
Less than 25,000
5 10%
25,000to 50,000
20 40%
50,000to 75,000
17 34%
More than 75,000
8 16%
Total
50 100%
Analysis-
From the following analysis table it can be analysed that, 40% of respondent
belong to the income group of Rs. 25,000 to 50,000 followed by 34% of
respondent of the belong to the income group of Rs. 50,000 to 75,000, 16% of
respondent belong to the income group of belong to age group of more than Rs.
75,000 and by 10% of respondent of the belong to the income group of less than
Rs. 25,000.

52 | P a g e
4.2(b) Graph showing different level of income group of the
respondent.
Interpretation:
From the following chart we can conclude that, company is having most number
of personfrom income group Rs. 25,000 to 50,000 they are mostly working class
people. The remaining are less than Rs 25,000 who are part time workers and
staff.
0
2
4
6
8
10
12
14
16
18
20
Less than 25,000 25,000 to 50,000 50,000 to 75,000 More than 75,000
5
20
17
8
Income Group

53 | P a g e
4.3(a) Table showing the preference of the vehicle by the
respondent.
Analysis:-
From the following above table it can be analysed that the 40% of respondents
are using Splendor, 24% of respondents using Glamour, 20% use pleasure,
20%use Maestro and 8% use karizm.
Model No. of Respondents Percentage
SPLENDOR 20 40%
GLAMOUR 12 24%
KARIZM 4 8%
MAESTRO 4 8%
PLEASURE 10 20%
Total 50 100%

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4.3(b) Graph showing the preference of the vehicle by the
respondent.
Interpretation:-
From the following graph it can be concluded that the most number of
respondents areusing Splendor due to high mileage and lowest maintenance.
The remaining lowest percentage use Karzima and Maestro as are their
better substitute in the market.
20
12
4
4
10
Preference
SPLENDOR GLAMOUR KARIZMA MEASTRO PLEASURE

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4.4(a) Table showing how much respondent has used the vehicle.
Distance (km) No. of Respondents Percentage
500 - 5000km 4 8%
5000 - 20000km 10 20%
20000 - 40000km 11 22%
40000 & Above km 25 50%
Total 50 100%
Analysis: –
From the following above table it can be analyzed that the 8% of respondents
has travelled 500-5000 km, 20% of respondents has travelled 5000-20000 km,
22% of respondents has travelled 20000- 40000 km and 50% of respondents has
travelled 40000 km & Above.

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4.4(b) Graph showing how much respondent has used the
vehicle.
Interpretation:-
From the above graph it can be concluded that most respondents has travelled
40000 & above are the people who travel long distance for work. And the
remaining small group of people have multiple vehicle.
0
5
10
15
20
25
500 - 5000 5000 - 20000 20000 - 40000 40000 & Above
4
10 11
25
DistanceTravelled

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4.5(a) Table showing the usage of the vehicle.
Time (Years) No. of Respondents Percentage
Less than 1 year 4 8%
1-2 Years 14 28%
2-4 Years 20 40%
4 years & Above 12 24%
Total 50 100%
Analysis:
From the above table it can be analyzed that, 8% of respondents has used vehicle
for Less than 1 year, 28% of respondents has used vehicle for 1-2 years, 40% of
respondents has used vehicle for 2-4 years, 24 % of respondents has used vehicle
for 4 years & above.

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4.5(b) Graph showing the usage of the vehicle.
Interpretation:-
From the above graph it can be concluded that 40% of respondents has used
vehicle for 2-4 years as the new models and up gradation are coming to meet to
it. And the small percentage of people keep no changing the vehicle to get the
latest in the market.
0
2
4
6
8
10
12
14
16
18
20
Less than 1 year 1-2 Years 2-4 Years 4 years & Above
4
14
20
12
Time period for useof vehicles

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4.6(a)Table showing the main unique selling preposition of the
vehicle.
Particulars No. of Respondents Percentage
SPEED 5 10%
POWER/BHP 14 28%
MILEAGE 20 40%
DESIGN 11 22%
Total 50 100%
Analysis:
Fromthe above table it can be analyzed that, 10% of respondents boughtvehicle
due to speed , 28% of respondents bought vehicle due to power, 40% of
respondents bought vehicle due to mileage and 22% of respondents bought
vehicle due to design.

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4.6(b) Graph showing the main unique selling preposition of
the vehicle.
Interpretation:-
From the above graph it is inferred that, 40% of respondents bought vehicle due
to mileage as the fuel price is rising and for the local usage. The rest group of
people bought due to other important feature.
0
2
4
6
8
10
12
14
16
18
20
Speed Power Mileage Design
5
14
20
11
Unique selling preposition

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4.7(a) Table showing the influencer behind the purchase.
CHILDREN’S 2 4%
WIFE 9 18%
FRIENDS 30 60%
PARENTS 9 18%
Total 50 100%
Analysis:-
From the above table it can be analyzed that, 4% of respondents bought vehicle
due to influence of children, 18% of respondents bought due to wife, and 60% of
respondents bought due to friends, 18% of respondents bought due to parents
influence respectively.

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4.7(b) Graph showing the influencer behind the purchase.
Interpretation:-
Fromthe abovegraph it is inferred that, 60% of respondents boughtdueto friends
as they also own that type of vehicle and they are the mostapproachable to them.
The remaining people are influenced by the family members.
0
5
10
15
20
25
30
Children's Wife Friends Parents
2
9
30
9
Influencer

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4.8(a) Table showing the purpose of buying the vehicle.
Official 20 40%
Household 14 28%
Business 5 10%
Any other 11 22%
Total 50 100%
Analysis:-
From the above table it is inferred that, 40% of respondents bought for official
purpose, 28% of respondents bought for household purpose, 10% of respondents
bought for business purpose and 22% of respondents bought for other purpose.

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4.8(b) Graph showing the purpose of buying the vehicle.
Interpretation:-
From the above graph it can be seen that nature of purchase of vehicle by the
respondent are mainly for the official purpose. And the remaining use it for other
purpose.
0
2
4
6
8
10
12
14
16
18
20
Official Household Business Anyother
20
14
5
11
Purposeof Purchase

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4.9(a) Table showing the factor influencing the brand.
Brand Value
20 40%
Design 8 16%
Publicity 16 32%
Scheme 6 12%
Total 50 100%
Analysis
Fromthe above table it can beanalyzed that, 40% ofrespondents boughtforbrand
value, 16% of respondents bought for design, 32 % of respondents bought for
publicity and 12% of respondents bought for scheme.

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4.9(b) Graph showing the factor influencing the brand.
Interpretation:-
Fromthe following graph we can concludethat, people mostly go for brand value
then publicity followed by design and scheme. People mostly see the image of
the company in the market then buy the product.
.
0
2
4
6
8
10
12
14
16
18
20
Brand Value Design Publicity Scheme
20
8
16
6
Purchase

67 | P a g e
4.10(a) Table showing the level of satisfaction of respondent.
Level No. of Respondents Percentage
Highly Satisfied 20 40%
Satisfied 22 44%
Dissatisfied 6 12%
Highly Dissatisfied 2 4%
Total 50 100%
Analysis
From the above table it is seen that, 40% of respondents fall under Highly
Satisfied, 44% of respondents fall under Satisfied, 12% of respondents fall under
dissatisfied and 4% of respondents fall under Highly Dissatisfied

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4.10(b) Graph showing the level of satisfaction of respondent.
Interpretation:-
From the above graph it can be conclude that maximum percentage of people are
satisfied so the company is able to achieve its goal and the main motive of
customer satisfaction. It is also able to deliver good products to market. The
reaming customer should also be kept in mind and taken care of.
0
5
10
15
20
25
Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied
20
22
6
2
Satisfaction level

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4.11(a) Table showing Factors better than our competitor.
Budget 15 30%
Brand 7 14%
Maintenance 22 44%
Service 6 12%
Total 50 100%
Analysis:-
Fromthe above table it is inferred that, 30% ofrespondents boughtdue to budget,
14% of respondents bought due to brand, 44% of respondents bought due to
maintenance, 12% of respondents bought due to Service.

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4.11(a) Graph showing Factors better than our competitor.
Interpretation:-
From the above graph it can be conclude tell that most of the people who buy
hero vehicle is due to maintenance. Which is the thing that keep us better than
our competitor.
0
5
10
15
20
25
Budget Brand Maintenance Service
15
7
22
6
Influencing Factor

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4.12(a) Table showing the problem faced by the customer.
Problem faced No. of Respondents Percentage
LACK OF
COMMUNICATION
10 20%
POOR QUALITY 10 20%
DELAY IN DELIVERY 14 24%
OTHER THINGS 16 36%
Total 50 100%
Analysis:-
From the above table it can be concluded that, 20% of respondents has faced
problem with Lack of communication, 20% of respondents has faced problem
with poor quality, 24% of respondents has faced problem with delay in
delivery, and 36% of respondents has faced other things.

72 | P a g e
4.12(b) Graph showing the problem faced by the customer.
Interpretation: -
From the above graph we come to a conclusion that people face no problem at
the time of the service and only few people complain about price of the spare
parts or low quality or delay in service.
0
2
4
6
8
10
12
14
16
Lack of communication poor quality Delay in delivery Other things
10 10
14
16
Problemfaced

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4.13(a) Table showing the reliability of the Hero vehicles.
EXCELLENT 20 40%
GOOD 22 45%
AVERAGE 6 14%
POOR 2 4%
Total 50 100%
Analysis
From the above table it is analysed that, 40% of respondents feels excellent for
the reliability ofthe hero, 45 % of respondents feels excellent for the reliability
of the hero, 14% of respondents feels good for the reliability of the hero, and
4% of respondents feels excellent for the reliability of the hero.

74 | P a g e
4.13(b) Graph showing the reliability of the Hero vehicles.
Interpretation:-
From the above graph it is concluded that respondent find hero vehicles as reliable and
can use it for longer duration of time and also very few people have rated is as poor.
Company should take of that.
0
5
10
15
20
25
Excellent Good Average Poor
20
22
6
2
Realiability

75 | P a g e
4.14(a) Table showing customer recommending our brand to
others.
SURELY WILL
RECOMMEND
31 62%
WILL RECOMMEND 9 18%
CAN’T SAY 7 18%
NOT SURE 3 6%
Total 50 100%
Analysis
From the above table it is analysed that, 6% of respondents are not sure about the
recommendation, 14% of respondents can’t say about the recommendation, 18%
ofrespondents will recommendation, 62% ofrespondents surely will recommend.

76 | P a g e
4.14(b) Table showing customer recommending our brand to
others.
Interpretation: -
From the above chart we can conclude that maximum percentage of people have
chosen the option that they will recommend it to other people and very few have
chosen the option not sure.
3
7
9
31
Recommend
Not Sure Can't Say Will Recommend Suerly will recommend

77 | P a g e
4.15 (a) Table showing the main source of information.
Source No. of Respondents Percentage
TELEVISION 20 40%
NEWSPAPERS 12 24%
BANNERS &
HOARDINGS
6 12%
INTERNET 12 24%
Total 50 100%
Analysis:-
Fromthe abovetable it is analysed that, 40% of respondents camto know through
television, 24% of respondents cam to know through newspaper, 12% of
respondents camto know through Banners & Hoardings, 24% ofrespondents cam
to know through internet.

78 | P a g e
4.15 (b) Graph showing the main source of information.
Interpretation: -
From the above graph it can be conclude that with the help of television maximum percentage
of people can be reached as compared to other sources of advertisement. As it is densely
available and attractive.
0
2
4
6
8
10
12
14
16
18
20
Television Newspapers Banners & Hoardings Internet
20
12
6
12
Advertisement

79 | P a g e
5.1 FINDINGS
 It can bestated that the customer of the company are more from the middle
age.
 It is seen that the customers where taken care with courtesy and addressed
all question and problem of the respondent with interest and helped in
solving their issue.
 As per the research it is seen that problem were quickly solved and taken
care of which is one of a good factorbecause the objective ofthe company
is to satisfy the customer.
 It canbe seen that the customer service is an effective systemwhich records
all call and message and helps storethe data and faster flow of information
thereby solving the issue faster.
 It can be state that overall respondent view with the customer satisfaction
was good because we follow a system of objective and strive to follow it
through our vision.
 It is also seen that the service is bit expensive but the return on that is very
good and they are highly satisfied with the service provide.
 It is found that the customer has rated our vehicle as excellent due to its
great mileage and the cheap maintenance.

80 | P a g e
 It can be also be seen that we stand out on the service and the pricing
strategy is best the market comparing to other competitors in the market.
 Customer has stated that they came to know about the product through
television
 It is state that the customer have rated us excellent in overall due to the
service we provide to them and maintain it.

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5.2 SUGGESTION & RECOMMENDATION
After meeting the customer and talking to them about the live tips and their
service and knowing their requirements the following recommendation is being
developed.
1. Target customer
The main target new customer should be seen as an opportunity to the company.
We should help more and more customer to buy our product, and make them fill
them fill that the buying our productis not an expenditure it’s an investment for
the long term which will give you good retune in future. Being the maintenance
and other USP of the product. And also giving the exchange offers and easy
finance offer that will help them to buy vehicle from you.
2. Customer satisfaction
Forthe small crowd ofpeoplewho are notsatisfied with the companythey should
be approached back and their problem should be solved. For the people who are
onaverage level then continues customerservice should bedonefor them to make
them satisfied. Over all for each and every customer there should be no delay
done for any complains and their requirements.
3. Service
Due to more fluctuation of market the analysis oftips should be asked to generate
more accurate and perfect tips to be sending and while sending delayed should
not be done in it.

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5.3 CONCLUSION
Research above shows the customer satisfaction of hero motors through live tips
and the questioner. In regards to their various service and customer service. Also
the overall rating of the company and how it stands beyond of their competitor.
The study shows that the 70% - 80% of the customer are satisfied with the kind
of service and customer relationship is done with them by live tips. The new
customer also fined the company different from other company which is a
positive point for them. To fulfill the customer requirement in time should be
seen.
Over all the company present customer satisfaction level are on satisfied with a
small number of people of people not satisfied, which should be taken care of.

83 | P a g e
Reference
Website
www.heromotocop.com
www.google.com
www.businessdictoinery.com
Books
Marketing management, Philip kotler 12th
edition
Fundamental of marketing management, T.S Devaraja

84 | P a g e
Questionnaire on customer Satisfaction of Hero Bikes
Name:
Occupation: Student Business Professional
1. Age:
A) 20-25 B) 25-35 C) 35-45 D) above 45
2. Income (P.M) -
a. Less than25,000 c. 25,000 to50,000
b. 50, 000 to75,000 d. More than75,000
3. Whichvehicle youhave of HeroMotor cop?
a. Maestro
b. Impulse
c. Splendor
d. Karzima ZMR
e. Passion
4. How much Km have you travelledtill now?
a. 500km - 5000km
b. 5000km - 20000km
c. 20000km - 40000km
d. 40000km & above km
5. Fromhow many years do you own the bike?
a. 0-1 year
b. 1-2 years
c. 2- 4 years
d. 4 & above years

85 | P a g e
6. What feature of bike you like the most while purchasing the bike?
a. Speed
b. Power/ BHP
c. Mileage
d. Design
7. Who influenced you to buy this vehicle?
a. Friends
b. Wife
c. Children’s
d. Parents
8. For what purpose you buy Hero bike?
a. Official
b. Household
c. Business
d. Any other
9. Why did you purchased the bike?
a. Brand value
b. Design
c. Publicity
d. Scheme
10. Which satisfaction level you fall under?
a. Highly Satisfied
b. Satisfied
c. Dissatisfied
d. Highly Dissatisfied
11. What factor influence you to buy the vehicle?
a. Budget
b. Maintenance
c. Brand
d. Service

86 | P a g e
12. How do you think is the reliability of the herovehicles?
A) Excellent B) Good
C) Average D) poor
13. What kind of problems faced during the time of service?
A) Delay indelivery B) Poor quality
C) Other things D) Lack of communication
14. Will you recommend are brand to your family and friends?
a. Strongly Recommend
b. Recommend
c. Somewhat recommend
d. Not Recommend
15. How didyou come to know about this model?
a. Internet
b. Banners & Hoardings
c. Friends/Relatives
d. TV
Comment & Suggestion for the improvement.
Thank you for you Feedback

Hero Motors customer satisfsction

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