Deepa Consumer Buying Behaviour
Content
MBA PROJECT
CONTENTS
Chapter-I
Introduction for Hero Honda
History
Key policy
Prominent Award
1-18
Chapter-II
Research Methodology
Sampling Design
Data collection
19-27
Chapter-III
Theoretical Background
28-32
Chapter-IV
Data Analysis & Interpretation
33-39
Chapter-V
Finding
Suggestions & Conclusion
40-45
Bibliography
46-47
Annexure
Questionnaire
48-51
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INTRODUCTION
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INTRODUCTION
HERO GROUP:
“HERO” the brand name symbolizing the steely ambition of
Munjal brothers, came into being in the year 1956. From a modest
manufacturer of bicycle components in the early 1940’s to the world’s
largest bicycle manufacturer today; the odyssey was fueled by one vision
– to long lasting relationship with everyone’ including workers ‘dealers
and vendors. This philosophy has paid rich dividends through the years.
Hero’s name synonymous with two wheelers in India is today a
multi-unit, multi product geographically diversified group of companies,
through fully integrated operations and the Munjals roll their own steel,
make critical components and have the foresight to simultaneously
diversify into myriad ventures, like product designing, IT enabled
services, finance and insurance, just to a name few.
The Hero philosophy is “to provide excellent transportation to
the common man at easily affordable prices and to provide total
satisfaction in all its spheres of activity.”
“Engineering Satisfaction” is the prime motive of the Hero group
and it has become a way of life and apart of the work culture of the
group. This is what derives the group to seek new vistas, adopt faster
technology and create quality driven products to the utmost satisfaction
of customers, partners, dealers and vendors.
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Today the Hero Group has a number of accolades and
achievements to its credits…. Yet consumer requirements and newer
technologies provide fresh challenges every day, and at Hero the wheels
of progress continue to turn…..
Hero Honda had a market share of 48% in motorcycles and 37%.
In two-wheelers for the year 2003-04. It has added another 4% points to
regain its market share to 2001-02 levels.
In Motorcycles and has further consolidated its position in twowheelers. The market shares of Hero Honda in two-wheelers and
motorcycles in the last 5 years.
In the year 2003-04, Hero Honda recorded a sale of 2.07 million
and registered a growth of 23% as compared to all India sales growth of
14% in motorcycles. The company for the first time crossed the annual
sale of 2 million vehicles. At the same time, the gap between nearest
competitors and Hero Honda is over 1 million.
Motorcycles and we believe that our strategy of remaining closer to
the customers and providing products of their choice has provided this
advantage. We have continued our strategy of broad basing our product
portfolio based on a series of market surveys.
Accordingly in the year 2003-04, HERO HONDA MOTORS
launched 5 models basically to provide additional features and also cover
niche markets. Our largest selling models i.e. Splendor and Passion put
together constitute a major portion of our total sales. The onus of
providing volume is taken over by other models. The year also saw a
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handsome volume of half a million sale realized from our newly launched
CD Dawn. Spare parts business, an initiative, which we started to ensure
genuine parts supply, has yielded revenue of Rs.275 Crores for the
financial year 2003-2004.
In the coming days, the competition may adopt new strategy of
bringing bikes with incremental power that is over 100cc to take on our
successful models. Your Company is very conscious about the future
challenges of Indian market and therefore, will continuously strive to stay
ahead with the introduction of new products, technology and services.
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HISTORY :
When hero Cycles and Honda Motor Company of Japan inked their
joint venture in India in April 1984, few could have imagined that the two
would go on to create history and become the subject of a case study at
business schools, internationally.
But that is the Hero Honda saga for you. In a little over two
decades, the world’s largest manufacturer of bicycles and the global
leader in motorcycles have created not only the World’s single largest
motorcycle company but also the most endearing and successful joint
venture for Honda Motor Company worldwide. The company has sold
over 15 million motorcycles and has consistently grown at double digits
since its inception and today, every second motorcycle sold in the country
is a Hero Honda.
In two decades, Hero Honda has built two world-class
manufacturing facilities at Dharuhera and Gurgaon in Haryana that now
churn out over 3 million bikes per year. In this period, Hero Honda has
set up over 2400 customer touch points, comprising a mix of dealers,
service centers and stockiest across rural and urban India. Today, Hero
Honda is an amalgam of winning networks and relationships with internal
and external stakeholders, including Investors, Dealers, Vendors and
Employees. These relationships have helped the company hold on to the
mantle of World No.1 for years in succession.
What makes Hero Honda well, Hero Honda, is synergy. The two
partners, leaders in their respective domains, have been able to
consistently draw on each other’s strengths. The Hero Group’s deep
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domain knowledge of the Indian market and its supplier network has
meshed with Honda’s mastery over four-stroke engine technology to
create modern and fuel-efficient machines at affordable prices for India’s
250-300 million strong middle class.
Progressively through the 1980s, the 1990s and now in the 2000s,
Hero Honda has relied on 3 R’s – Reach, Research and Reliability as its
basic building blocks. Using feedback from the market, a fully-equipped
R & D center has consistently created best practices in designing, testing
and harmonization, besides placing strong emphasis on road safety and
ride quality. This emphasis has helped Hero Honda build products and are
ahead of their time.
In the 1980s, for example, Hero Honda became the first company
in India to prove that it was possible to drive a vehicle without polluting
the roads. The company introduced new generation motorcycles that set
industry benchmarks for fuel thrift and low emission. A legendary 'Fill itShut it - Forget it' campaign captured the imagination of commuters
across India, and Hero Honda sold millions of bikes purely on the
commitment of increased mileage.
Hero Honda was also one of India's first automotive companies to
get close to the customer. Over the years, feedback has flowed back and
forth seamlessly through a unique CRM program - the Hero Honda
Passport Program which now has over 2.5 million members on its roster.
The program has not only helped Hero Honda understand its customers
and deliver value at different price points, but has also created a loyal
community of brand ambassadors.
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The best is yet to come. Hero Honda is powering its way through a
market that is still to unleash its true potential, as barely two per cent of
the population has been penetrated so far!
It isn't surprising that the company is in no mood to take its hand
off the throttle. As Brijmohan Lall Munjal, the Chairman, Hero Honda
Motors succinctly puts it, "We pioneered India's motorcycle industry, and
it's our responsibility now to take the industry to the next level. We'll do
all it takes to reach there."
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MILE STONES :
Hero's success saga contains an element of spirit and enterprise; of
achievement through grit and determination, coupled with vision and
meticulous planning.
1983 -
Joint Collaboration Agreement with Honda Motor Co., Ltd.,
Japan signed Shareholders Agreement signed
1984 -
Hero Honda Motors Ltd. incorporated 1985 - First
motorcycle
"CD 100" rolled out
1987 -
100,000th motorcycle produced
1989 -
New motorcycle model- "Sleek" introduced
1991-
New motorcycle model- "CD 100 SS" introduced
500,000th
1992 -
motorcycle produced
Raman Munjal Vidya Mandir inaugurated - A School in the
memory of founder Managing Director, Mr. Raman Kant
Munjal.
1994 -
New motorcycle model- "Splendor" introduced 1,000,000th
motorcycle produced
1997 -
New motorcycle model- "Street" introduced HeroHonda's
2nd
manufacturing plant at Gurgaon inaugurated
1998 -
2,000,000th motorcycle produced
1999 -
New motorcycle model - "CBZ" introduced
Environment Management System of Dharuhera Plant
certified with IS0- 14001 by DNV Holland Raman Munjal
Memorial Hospital inaugurated - A Hospital in the memory
of
founder Managing.
2000 -
4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant
certified
IS0-14001 by DNV Holland
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Splendor declared 'World No.1' - largest selling single two-wheeler
model.
"Hero Honda Passport Programmed" - CRM Programmed launched
2001-
New motorcycle model - "Passion" introduced
One million production in one single year
New motorcycle model- "Joy" introduced
5,OOO,OOOth motorcycle produced
2002 -
New motorcycle model - "Dawn" introduced
New motorcycle model- "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj
Singh,
Harbhajan Singh and Zaheer Khan as Brand
Ambassadors
2003 -
Becomes the first Indian Company to cross the cumulative 7
million sales mark.
Splendor has emerged as the World's largest selling model for the
third calendar year in a row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model- "Karizma" introduced
2004 -
New motorcycle model- "Ambition 135" introduced
Hero Honda became the World No.1 Company for the third
consecutive year.
Crossed sales of over 2 million units in a single year, a
global
record.
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Splendor - World's largest selling motorcycle crossed the 5 million
mark.
New motorcycle model- "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles
2005-
Hero Honda is the World No.1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model- "CD Deluxe" introduced
New motorcycle model- "Glamour" introduced
New motorcycle model- "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure"
introduced
2006-
Hero Honda is the World No.1 for the 5th year in a row
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HERO HONDA'S MISSION:
Hero Honda’s mission is strives for synergy between technology,
systems and human resources, to produce products and services that meet
the quality, performance and price aspirations of its customers. At the
same time maintain the highest standards of ethics and social
responsibilities.
This mission is what drives Hero Honda to new heights in
excellence and helps the organization forge a unique and mutually
beneficial relationship with all its stakeholders.
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KEY POLICIES :
An Environmently and Socially, Aware Company:
At Hero Honda, our goal is not only to sell you a bike, but also to
help you every step of the way in making your world a better place to live
in. Besides it will to provide a high-quality service to all of its customers,
Hero Honda takes a stand as a socially responsible enterprise respectful
of its environment and respectful of the important issues.
Hero Honda has been strongly committed not only to
environmental conservation programs but also expresses the increasingly
inseparable
balance
between
the
economic
concerns
and
the
environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve
mankind.
"We must do something for the community from whose land we
generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal :
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Environment Policy:
We at Hero Honda are committed to demonstrate excellence in our
environmental performance on a continual 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, where viable and strengthen 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 particular, in the areas of oil,
water, electrical energy, paints and chemicals.
Enhance environmental awareness of our employees and dealers /
vendors, while promoting their involvement in ensuring sound
environmental management.
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Quality Policy:
Excellence in quality is the core value of Hero Honda's philosophy :
We are committed at all levels to achieve high quality in whatever we
do, particularly in our products and services which will meet and exceed
customer's growing aspirations through:
Innovation in products, processes and services.
Continuous improvement in our total quality management systems.
Teamwork and responsibility.
Safety Policy:
Hero Honda is committed to safety and health of its employees
and other persons who may be affected by its operations. We believe that
the 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.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work
places. Promoting safety and health awareness amongst employees,
suppliers and contractors.
Continuous improvements in safety performance through precautions
besides participation and training of employees.
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PROMINENT AWARDS TO THE COMPANY:
Year Awards & Recognitions
2008 (NDTV Profit Car India & Bike India Awards - Bike Manufacturer
of the year)
Overdrive Magazine - Bike Manufacturer of the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
2007 The NDTV Profit Car India & Bike India Awards 2007 in the
following category:
Overall "Bike of the Year" - CBZ X-treme
"Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Bike Technology of the Year" - Glamout PGM FI
“Most Trusted Company" I by TNS Voice of the Customer Awards
2006).
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top
Indian Two Wheeler Company)
One of the 8 Indian. companies to enter the Forbes top 200 Hst of
world's most reputed companies.
No. 1 in automobile industry by TNS Corporate Social
Responsibility Award.
Best in its class awards for each. category by TNS Total Customer
Satisfaction Award 2006
Splendor Plus (Executive)
CD Deluxe (Entry)
Pleasure (Gearless Scooters)
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Top Indian company in the Automobile - Two Wheeler sector by
Dun & Bradstreet - American Express Corporate Awards 2006
Hero Honda Splendor rated as India's most preferred two-wheeler
brand at the Awaaz Consumer Awards 2006.
The NDIV Profit Car India & Bike India Awards 2006 in the
following category:
Bike Maker of the Year
Bike of the Year - Achiever
Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)
2005 Awaaz Consumer Awards 2005 - India's most preferred twowheeler
brand by CNBC in the 'Automobiles' category)
Bike Maker of the Year Award by Overdrive Magazine
ICWAI National Award for Excellence (Second) in Cost
Management 2004 in the private sector category by ICWAI
10th Motilal Oswal Wealth Creator Award for as the most
consistent
wealth creator for the period 1991-2005
2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies)
GVC Levell (Highest Rating) by CRISIL for corporate Governance
Corporate Excellence Award 2004 by Indian Institute of Materials
Management.
ICSI National Award for Excellence in Corporate Governance 2004
by The Institute of Company Secretaries of India
2003 Winner of the Review 200 - Asia's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies
Most Respected Company in Automobile Sector by Business World
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Bike Maker of the Year by Overdrive Magazine
2002 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia's Leading Companies Award (4th
Rank amongst the top 10 Indian companies)
Company of the Year of ET Awards for Corporate Excellence.
3rd in 'Best Financial
Management' and 'Best Operational
Efficiency' category, ranked 6th in 'Overall Best Investor Relations’, by
Asiamoney.
Highest Wealth Creating Company of the Year Award by the
Money
GVC Levell (Highest Rating) by CRISIL for Corporate
Governance
2001 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia's Leading Companies Award (9th
Rank amongst the top 10 Indian companies
Winner of Three Leaves. Award for showing Corporate
Environment Responsibility in the Automobile Sector by Centre
for Science & Environment
1999 National Productivity Award for the Best Productivity Award in the
category of Automobile & Tractor presented by Vice President of
India.
1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on
being ranked 9th amongst the most investor rewarding companies
in
India.
1995 National Award for outstanding contribution to the Development of
Indian Small Scale Industry (NSIC Award - Presented by President
of India)
1991 Economic limes-Harvard Business School Award for Corporate
Performance to Hero Honda Motors Ltd.
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BOARD OF DIRECTORS :
No.
Name of the Directors
1
Mr. Brijrnohan Lan Munjal
Chairman & Whole-time Director
2
Mr. Pawan Munjal
Managing director
3
Mr. Toshiaki Nakagawa
Joint Managing Director
4
Mr. Yutaka Kudo
Whole-time Director
5
Mr. Om Prakash Munjal
Non-executive Director
6
Mr. Sunil Kant Munjal
Non-executive Director
7
Mr. Tatsuhiro Oyama
Non-executive Director
8
Mr. Masahiro Takedagawa
Non-executive Director
9
Mr. Takashi Nagai
Director
10
Mr. Narinder Nath Vohra
Non-executive and Independent Director
11
Mr. Pradeeep Dinodia
Non-executive and Independent Director
12
Gen. (Retd.) Ved Prakash
Non-executive and Independent Director
Malik
13
Mr. Analjit Singh
Non-executive and Independent Director
14
Dr. Pritam Singh
Non-executive and Independent Director
15
Ms. Shobhana Bhartia
Non-executive and Independent Director
16
Dr. Vijay Laxman Kelkar
Non-executive and Independent Director
17
Mr.Sunil Bharati Mittal
Non-executive and Independent Director
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HERO HONDA SUPER SPLENDOR SPECIFICATIONS
Specifications
Engine/ Transmission
Engine
4-Stroke OHC, Single Cylinder, Air
Cooled
Bore Stroke
52.4 57.8 mm
Displacement
124.7 cc
Compression Ratio
9.1 : 1
Max power
6.72 Kw (9 BHP( @ 7000 rpm
Torque
10.35 Nm @ 4000 rpm
Max Speed
90 Kmph
Clutch
4 – Speed Constant Mesh
Final Drive
Roller Chain
Electricals
Ignition
Digital – CDI Ignition (AMI)
Advanced Micro Processor Ignition
System
Head Light
12V – 35 W Multi Reflector
Halogen Bulb – AC Type
Starting
Kick Start Self Start (Optional)
Tyres
Front
2.75 18 – 4 PR/ 42P
Rear
2.75 18 – 6 PR / 48P
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Specifications
Engine/ Transmission
Brakes
Front Drum Type
Internal Expanding Type – 130 mm
Dia
Front Disc Type
Hydraulic Disc Type – 215 mm Dia
(Optional)
Rear
Internal Expanding Type – 130 mm
dia
Suspension
Front
Telescopic Hydraulic Fork
Rear
Swing Arm with Hydraulic Shock
Absorbers
Dimensions
Dimensions (LXWXH)
1995 735 1095 mm
Wheel Base
1265 mm
Ground Clearance
150 mm
Kerb eight
117 Kh (Kick Version)
121 Kg (Self Version)
Frame
Tubular Double Cradle
Fuel Tank Capacity
12 Ltrs. (Min)
Colours Available
Black, Silver,Red, Blue, Maroon
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RESEARCH
AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT:
The Hero Honda first accessed Honda technology in 1985-86
through a technical collaboration. Since then, your company has access to
some of the best automobile research technology in the world. Over the
year we have also collect huge amount of market feedback data. This has
given us considerable insights into Indian conditions and segment-centric
customer requirements. This domain knowledge, combined with strong
products backed by Honda R&D is primary reasons for Hero Honda's
success.
Your company's R&D is now on line with the Honda factory in
Kumamoto for instant data transfer. This help in the transfer of design
data instantly, and facilities quicker responses to the market. Honda's
R&D office in Gurgaon India also collaborates with Hero Honda in India
for day to day activity.
Meanwhile, over the years, your company has honed its own
research capabilities. This has helped in large-scale localization and
integration allowing the company to keep costs low even at the time of
initial launch. Not only that, your company's R&D has already developed
requisite infrastructure and expertise to develop, test and approve
products in-house as per Hero Honda specifications and acceptance
criteria.
These facilities are upgraded from time to time, ahead of new
technology adoption. For example, during the year in review, your
company trebled its R&D capital expenditure. ~s in turn allowed us to
launch state-of-the -art bikes with a high local content.
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METHODOLOGY:
RESEARCH:
Research in common parlance refers to search for knowledge. One
can also define research as a "scientific and systematic search for
pertinent information on a specific topic”. In fact, research is an art of
scientific investigation.
According to Clifford Wood "research comprises defining and
redefining problems, formulating hypothesis or suggested solutions;
collecting, organising and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis".
RESEARCH DESIGN:
"Research design is the plan. Structure and strategy of investigation
conceived so as to obtain answers to research questions and to control
variance."
-According to Kerlinger
"A research design is the specification of methods and procedures
for acquiring the information needed. It is the over -all operational
patterns or framework of the project that stipulates what information is to
be collected from which sources by what procedures. "
-Green & Tull.
A research design is the overall framework or plan used for the
collection and analysis of the data in the market research project.
In is broadly classified in to three categories.
Exploratory
Descriptive
Casual
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SAMPLING:
Sampling may be defined as selection of some part of an aggregate
or totality on the basis of which a judgment or inferences about the
aggregate or totality is made. It is the process of obtaining information
about an entire population by examining only a part of it. All this is done
on the assumption that the sample data will enable him to estimate the
population parameters. The items so selected constitute what is
technically called a SAMPLE, their selection process or technique called
sample design and the survey conducted on the basis of sample is
described as SAMPLE SURVEY.
In the process of research study we gone through sampling
technique in which we conducted. a sample survey on 100 customers of
HERO HONDA "SPLENDOR", on the basis of which inferences were
drawn.
SAMPLE DESIGN:
A sample design is definite plan for obtaining a sample from a
given population. It refers to the technique or the procedure the researcher
would adopt in selecting items for the sample. Sample design may as well
lay down the number of items to be included in the sample i.e. the size of
sample. Sample designs are determined before data are collected.
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DATA COLLECTION METHOD:
After the research design has been selected next important steps is to
collect the data. It is very vital step since the accuracy if data collected is
dependent upon the data collection method. There are two basic types of
data;
Primary Data Secondary Data
Primary Data
PRIMARY DATA:
Primary Data is collected by direct personal interview of customer
to know about the problems in present vehicle and to collect information
of why attracting more from Hero Honda Splendor. To get this
information we go through with a QUESTIONNAIRE by which we can
get every relevant information regarding our topic.
SECONDARY DATA:
Secondary Data collected from magazines, internet, and newspapers and
also collected from company literature. For collection of secondary data
we follow the same path which is stated above. We go through with web
site of Hero Honda motors, visit PRATHAM MOTORS authorize
showroom of Hero Honda in Pune.
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THEORETICAL
BACKGROUND
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INTRODUCTION OF THE TOPIC:
This particular topic is chosen because in most of the marketing
organization the "Consumer Behavior" plays a vital role of the entire
marketing programmed.
"To study and know more about different customers attitude of
Hero Honda Splendor and what are the reason of purchase Hero Honda
Splendor and needs, wants and desire of consumers."
OBJECTIVE OF THE STUDY:
The main objective of the study is given as follow;
To study consumer's views regarding the Hero Honda Splendor.
To find "out the customers attitude about Hero Honda Splendor price,
quality, appearance.
To find that what feature attracts the customer more in the Hero Honda
Splendor.
To find that customers financial base of purchasing of vehicle.
To study how consumer behavior study helps in marketing program.
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WHAT IS BUYER BEHAVIOR?
The wealth of product and services produced in a country make our
economy strong. Almost all the products, which are available to buyers,
have a number of alternative supplies; i.e. substitute products are
available to consumers, who make a decision to buy products. Therefore,
a seller, most of his time, seeks buyers and tries to please the. In order to
be successful, a seller is concerned with.
Who is the customer?
What do consumer buys?
When do consumers buy?
How do consumers buy?
From where do consumers buy?
Why do consumers buy?
A buyer makes a purchase of a particular product or a particular brand
and this can be termed "product buying motive.”
And the reason behind the purchase from a particular seller is "patronage
motives."
DEFINITION:
"The process where by individuals decides whether, what, when,
how and from whom to purchase goods and services can be termed as the
customer's behaviour."
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WHAT ARE BUYING MOTIVES?
You purchase a product, because of certain motives. Motives refer
to thought, urge, strong feelings, emotion, drive etc. they make a buyer to
react in the form of a decision. Motivation explains the behaviour of a
buyer. Motives induce a consumer to purchase a particular product.
The motives may be generally controlled by economic, social,
psychological influences etc.
When a consumers buy s a product; his aims are desire for security,
rest, comfort, curiosity, self-preservation, fashion etc. people purchase
product urged by mental and economic forces, which crate a. desire; and
this desire is satisfied by the articles displayed for self. Motive is an inner
urge that prompts one to action; it is not a more desire. The stimulated
desire is called a Motive.
Here we are concerned with consumer behaviour and the consumer
is the important factor. 'Buyer behavior is all psychological, social and
physical behaviour of potential customer, as they evaluate, purchase,
consume and tell others about the product and services."
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WHAT IS A CUSTOMER? :
A customer is the most important person ever in this office... ..in
person or by mail.
A customer is not dependent on us. . . ..
We are dependent on him.
A customer is not an interruption of our work...
He is the purpose of it. We are not doing a favor by serving by
him….
He is doing us a favor by giving us the opportunities to do
so.
A customer is not some one to argue or match wits with. Nobody ever
won and argument with a customer.
This particular topic is chosen because in most of the marketing
organization the "Consumer Behaviour" plays a vital role of the entire
marketing programmed.
"To study the know about of the different customers attitude about
the Hero Honda Splendor and why the reason of purchase Hero Honda
Splendor and needs, wants and desire of consumers."
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DATA ANALYSIS
&
INTERPRETATION
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PURPOSE OF USING VEHICLE :
Purpose
Respondents
In %
College
14
14
Services
29
29
Shopping
8
8
Business
41
41
Professional
8
8
100
100
Total
PURPOSE OF USING VEHICLE:
8%
14%
College
Services
Shopping
29%
41%
Business
Professional
8%
COMMENT:
Above graph shows that 41% people uses of vehicle for his
business purpose, 29% people for service, 14% for college and 8% people
use for shopping and professional use respectively. In this chart most of
people using vehicle for his business purpose.
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COLOR OF SPLENDOR PEOPLE LIKE MOST:
Colour
Respondents
Black
50
Silver
20
Red
17
Blue
10
Green
03
Total
100
COLOR OF SPLENDOR PEOPLE LIKE MOST:
10%
3%
Black
17%
Silver
50%
Red
Blue
Green
20%
COMMENT:
Above graph show that, 50% peoples most like Black colour, 20%
peoples like Red, 17% like Silver, 10% like Blue and last only 3%
peoples like Green colour.
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KNOWING ABOUT THE PRODUCT:
Media
Respondent
In %
Newspaper
10
10
Magazine
7
7
T.V.
8
8
Dealer
30
30
Friends
42
42
Internet
3
3
100
100
Total
KNOWING ABOUT THE PRODUCT:
3%
10%
7%
Newspaper
8%
Magazine
T.V.
42%
Dealer
Friends
Internet
30%
COMMENT:
In this chart 42% people know about Splendor from his friends,
30% people from the Dealers, 10% and 7% from Newspaper and
Magazine respectively, 8% from T.V., 3% from the Internet.
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Occupation v/s The most preferred purchasing feature of vehicle
Different feature of Hero Honda Splendor
Occupation Style Technology Brand Mileage quality
Total
Driving
performance
Student
5
4
5
0
0
4
18
Govt.
0
0
1
0
0
3
4
Employee
Professional
3
2
3
0
1
1
10
Services
2
4
12
1
3
5
27
Self
8
6
12
2
2
11
41
Employee
Total
18
16
33
3
6
24
100
Style
tech.
Brand
mileage quality
driving
Performance
COMMENT:In this graph self-employee person ratio is 41% and it purchase
Feature is company brand name and driving performance of Hero Honda.
This ratio is 33% and 24% respectively.
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Family Income V/S Mode of Purchase Vehicle:Family
Income / Month
5000-10000
10000-15000
15000-20000
20000 & above
Total
Mode of purchase vehicle
Self finance
Finance
through banks
2
14
25
22
12
13
8
4
47
53
Total
16
47
25
12
100
Comment:In that most of respondent whose family income lies between 10,000
to 15,000 there ratio is 47% and they purchase vehicle on cash basis.
Remaining 53% go with finance through banks.
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Customers with respect to different feature of the vehicle:Feature
Price
Mileage
Style
Quality
Maintenance
Brand image
Total
Satisfaction
6
29
22
23
12
8
100
Dissatisfaction
12
25
11
19
26
7
100
Feature of satisfaction and dissatisfaction
Price
Mileage
style
quality
Maintenance
Brand image
Comment:Above graph shows that 29% people satisfied with mileage but 25%
people don’t satisfied with average, and 26% people dissatisfied with
maintenance because spare cost are high. Other side 23% satisfied with
quality of the vehicle.
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FINDINGS
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FINDINGS :
Pune city has reasonable population of businessmen, services class,
and students. They invest money and satisfied wants & need and product
choice and durability.
The age group 31- 35 year people using splendor it covers 34% of
total market area and also age group 36 year and above using more
this vehicle, it cover 20% from total population. It means middle age
person is more using Splendor.
Most of the respondents are from Rs. 10000 to 15000 monthly family
income groups.
There are four main features that attract customer more. These Hero
Honda brand image driving performance, mileage, and quality of the
product. The most features are found in Hero Honda Company
vehicle.
The student like look out of the vehicle, business like brand image,
quality and average, the services class prefers the prices and average
of that.
Most of the people are using vehicle for own business purpose use and
also services.
The reason of purchasing Hero Honda Splendor is capacity for buying
and new came up in the market. The ratio of that 33% and 30%
respectively.
The main media of customer knowledge is about the product by
friends (exiting users), and dealers.
The purchase decision of the respondents is taken by him.
The black color of Splendor is most like to the people and attract to
the customer and also red and silver next choice.
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SUGGESTION
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SUGGESTION:
Sales promotion activities (discounts, free gifts, festival offers) should
be adopted to enhance sales figure.
Because of drastic reduction in taxes on two wheeler vehicles the
manufactures reduces the price of the two wheeler. So there may be
large scope for company to increase the sale and market share also.
Company should design schemes to maximize sale.
India's growth performance of the last decade and a half ranks among
top six in the world growth league & in purchasing power terms, the
growth puts top four in the world with these positive signals company
has to focus more on new entrants in the industry.
Continuous focus would be given on Cost management & their
operating efficiency would enable the company to lower down their
(co's) per unit cost to give maximum benefit to their customers, which
may likely to delight them in the available opportunity.
After selling 5 million units of splendor company should be
concentrate on "Customer Relationship Management”.
More authorized service centers backed with prompt services should
be open in remote & distant location of the country.
Before introducing the new product in the market company has to
conduct a market survey to know consumer behavior like and dislike
and there preference. To study how consumer actually takes buying
decision.
Innovation in products, process and services attract new customers as
well as give satisfaction to existing consumers.
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CONCLUSION
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CONCLUSION:
After the completion of the study, it is concluded that customer buying
behaviour is complex in nature and their needs, wants and purchasing
decision changing for time to time, to satisfied their needs or demand of
product changing in new scenario is the first priority of the company.
Company should be committed towards products and services, which will
meet and exceed customers growing aspiration.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1) Principles of Marketing
- Philip Koter
Gary Armstrong.
2) Marketing mgt. 12th edition
- Philip Kotre
- Kevin lane keller.
3) Marketing Research
- G. C. Beri
3) www.yahoo.com
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QUESTIONNAIRE
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QUESTIONNAIRE
ON CONSUMER BUYING BEHAVIOUR OF HERO HONDA
SPLENDOR
NAME :
……………………………………………………………………………..
ADDRESS :
……………………………………………………………………………..
AGE : …………….
Occupation :
……………………………………………………………………………..
Education :
……………………………………………………………………………..
Income (Monthly) :
……………………………………………………………………………..
Family Income (Monthly) :
……………………………………………………………………………..
APPLICABLE TO PRESENT VEHICLE OF OWNER :
Which type of vehicle you are using?
……………………………………………………………………………..
Which company and model vehicle you have?
……………………………………………………………………………..
What are the features of satisfaction in your vehicle?
……………………………………………………………………………..
What are the features of Dissatisfaction in your two-wheeler?
……………………………………………………………………………..
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USAGE ABOUT TWO-WHEELER :
How much distance you travel in a week?
……………….. K.M.
What purpose do you use your Vehicle?
Job
Business
College
Is there someone other then you will ride Hero Honda Splendor?
Yes
No
If yes, who will ride Hero Honda Splendor?
…………………………………………………………………………
QUESTION ABOUT BUYING DECISION :
What are the reasons for buying a vehicle?
……………………………………………………………………………
What were the reasons for your buying Hero Honda Splendor?
Style
Technology
Brand
Mileage
Quality
Driving Performance
Which colour of Hero Honda Splendor you like most?
……………………………………………………………………………
How did you come to know about Hero Honda Splendor?
……………………………………………………………………………
What bases you purchase vehicle?
Cash
Financial institution
Bank
Do you think purchase Hero Honda Splendor, in next 6 month?
Yes
No
If yes, how much time you are ready wait for that?
…………………………………………………………………………
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Suggestion :
…………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
Thank you
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CONTENTS
Chapter-I
Introduction for Hero Honda
History
Key policy
Prominent Award
1-18
Chapter-II
Research Methodology
Sampling Design
Data collection
19-27
Chapter-III
Theoretical Background
28-32
Chapter-IV
Data Analysis & Interpretation
33-39
Chapter-V
Finding
Suggestions & Conclusion
40-45
Bibliography
46-47
Annexure
Questionnaire
48-51
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INTRODUCTION
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INTRODUCTION
HERO GROUP:
“HERO” the brand name symbolizing the steely ambition of
Munjal brothers, came into being in the year 1956. From a modest
manufacturer of bicycle components in the early 1940’s to the world’s
largest bicycle manufacturer today; the odyssey was fueled by one vision
– to long lasting relationship with everyone’ including workers ‘dealers
and vendors. This philosophy has paid rich dividends through the years.
Hero’s name synonymous with two wheelers in India is today a
multi-unit, multi product geographically diversified group of companies,
through fully integrated operations and the Munjals roll their own steel,
make critical components and have the foresight to simultaneously
diversify into myriad ventures, like product designing, IT enabled
services, finance and insurance, just to a name few.
The Hero philosophy is “to provide excellent transportation to
the common man at easily affordable prices and to provide total
satisfaction in all its spheres of activity.”
“Engineering Satisfaction” is the prime motive of the Hero group
and it has become a way of life and apart of the work culture of the
group. This is what derives the group to seek new vistas, adopt faster
technology and create quality driven products to the utmost satisfaction
of customers, partners, dealers and vendors.
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Today the Hero Group has a number of accolades and
achievements to its credits…. Yet consumer requirements and newer
technologies provide fresh challenges every day, and at Hero the wheels
of progress continue to turn…..
Hero Honda had a market share of 48% in motorcycles and 37%.
In two-wheelers for the year 2003-04. It has added another 4% points to
regain its market share to 2001-02 levels.
In Motorcycles and has further consolidated its position in twowheelers. The market shares of Hero Honda in two-wheelers and
motorcycles in the last 5 years.
In the year 2003-04, Hero Honda recorded a sale of 2.07 million
and registered a growth of 23% as compared to all India sales growth of
14% in motorcycles. The company for the first time crossed the annual
sale of 2 million vehicles. At the same time, the gap between nearest
competitors and Hero Honda is over 1 million.
Motorcycles and we believe that our strategy of remaining closer to
the customers and providing products of their choice has provided this
advantage. We have continued our strategy of broad basing our product
portfolio based on a series of market surveys.
Accordingly in the year 2003-04, HERO HONDA MOTORS
launched 5 models basically to provide additional features and also cover
niche markets. Our largest selling models i.e. Splendor and Passion put
together constitute a major portion of our total sales. The onus of
providing volume is taken over by other models. The year also saw a
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handsome volume of half a million sale realized from our newly launched
CD Dawn. Spare parts business, an initiative, which we started to ensure
genuine parts supply, has yielded revenue of Rs.275 Crores for the
financial year 2003-2004.
In the coming days, the competition may adopt new strategy of
bringing bikes with incremental power that is over 100cc to take on our
successful models. Your Company is very conscious about the future
challenges of Indian market and therefore, will continuously strive to stay
ahead with the introduction of new products, technology and services.
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HISTORY :
When hero Cycles and Honda Motor Company of Japan inked their
joint venture in India in April 1984, few could have imagined that the two
would go on to create history and become the subject of a case study at
business schools, internationally.
But that is the Hero Honda saga for you. In a little over two
decades, the world’s largest manufacturer of bicycles and the global
leader in motorcycles have created not only the World’s single largest
motorcycle company but also the most endearing and successful joint
venture for Honda Motor Company worldwide. The company has sold
over 15 million motorcycles and has consistently grown at double digits
since its inception and today, every second motorcycle sold in the country
is a Hero Honda.
In two decades, Hero Honda has built two world-class
manufacturing facilities at Dharuhera and Gurgaon in Haryana that now
churn out over 3 million bikes per year. In this period, Hero Honda has
set up over 2400 customer touch points, comprising a mix of dealers,
service centers and stockiest across rural and urban India. Today, Hero
Honda is an amalgam of winning networks and relationships with internal
and external stakeholders, including Investors, Dealers, Vendors and
Employees. These relationships have helped the company hold on to the
mantle of World No.1 for years in succession.
What makes Hero Honda well, Hero Honda, is synergy. The two
partners, leaders in their respective domains, have been able to
consistently draw on each other’s strengths. The Hero Group’s deep
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domain knowledge of the Indian market and its supplier network has
meshed with Honda’s mastery over four-stroke engine technology to
create modern and fuel-efficient machines at affordable prices for India’s
250-300 million strong middle class.
Progressively through the 1980s, the 1990s and now in the 2000s,
Hero Honda has relied on 3 R’s – Reach, Research and Reliability as its
basic building blocks. Using feedback from the market, a fully-equipped
R & D center has consistently created best practices in designing, testing
and harmonization, besides placing strong emphasis on road safety and
ride quality. This emphasis has helped Hero Honda build products and are
ahead of their time.
In the 1980s, for example, Hero Honda became the first company
in India to prove that it was possible to drive a vehicle without polluting
the roads. The company introduced new generation motorcycles that set
industry benchmarks for fuel thrift and low emission. A legendary 'Fill itShut it - Forget it' campaign captured the imagination of commuters
across India, and Hero Honda sold millions of bikes purely on the
commitment of increased mileage.
Hero Honda was also one of India's first automotive companies to
get close to the customer. Over the years, feedback has flowed back and
forth seamlessly through a unique CRM program - the Hero Honda
Passport Program which now has over 2.5 million members on its roster.
The program has not only helped Hero Honda understand its customers
and deliver value at different price points, but has also created a loyal
community of brand ambassadors.
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The best is yet to come. Hero Honda is powering its way through a
market that is still to unleash its true potential, as barely two per cent of
the population has been penetrated so far!
It isn't surprising that the company is in no mood to take its hand
off the throttle. As Brijmohan Lall Munjal, the Chairman, Hero Honda
Motors succinctly puts it, "We pioneered India's motorcycle industry, and
it's our responsibility now to take the industry to the next level. We'll do
all it takes to reach there."
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MILE STONES :
Hero's success saga contains an element of spirit and enterprise; of
achievement through grit and determination, coupled with vision and
meticulous planning.
1983 -
Joint Collaboration Agreement with Honda Motor Co., Ltd.,
Japan signed Shareholders Agreement signed
1984 -
Hero Honda Motors Ltd. incorporated 1985 - First
motorcycle
"CD 100" rolled out
1987 -
100,000th motorcycle produced
1989 -
New motorcycle model- "Sleek" introduced
1991-
New motorcycle model- "CD 100 SS" introduced
500,000th
1992 -
motorcycle produced
Raman Munjal Vidya Mandir inaugurated - A School in the
memory of founder Managing Director, Mr. Raman Kant
Munjal.
1994 -
New motorcycle model- "Splendor" introduced 1,000,000th
motorcycle produced
1997 -
New motorcycle model- "Street" introduced HeroHonda's
2nd
manufacturing plant at Gurgaon inaugurated
1998 -
2,000,000th motorcycle produced
1999 -
New motorcycle model - "CBZ" introduced
Environment Management System of Dharuhera Plant
certified with IS0- 14001 by DNV Holland Raman Munjal
Memorial Hospital inaugurated - A Hospital in the memory
of
founder Managing.
2000 -
4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant
certified
IS0-14001 by DNV Holland
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Splendor declared 'World No.1' - largest selling single two-wheeler
model.
"Hero Honda Passport Programmed" - CRM Programmed launched
2001-
New motorcycle model - "Passion" introduced
One million production in one single year
New motorcycle model- "Joy" introduced
5,OOO,OOOth motorcycle produced
2002 -
New motorcycle model - "Dawn" introduced
New motorcycle model- "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj
Singh,
Harbhajan Singh and Zaheer Khan as Brand
Ambassadors
2003 -
Becomes the first Indian Company to cross the cumulative 7
million sales mark.
Splendor has emerged as the World's largest selling model for the
third calendar year in a row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model- "Karizma" introduced
2004 -
New motorcycle model- "Ambition 135" introduced
Hero Honda became the World No.1 Company for the third
consecutive year.
Crossed sales of over 2 million units in a single year, a
global
record.
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Splendor - World's largest selling motorcycle crossed the 5 million
mark.
New motorcycle model- "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles
2005-
Hero Honda is the World No.1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model- "CD Deluxe" introduced
New motorcycle model- "Glamour" introduced
New motorcycle model- "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure"
introduced
2006-
Hero Honda is the World No.1 for the 5th year in a row
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HERO HONDA'S MISSION:
Hero Honda’s mission is strives for synergy between technology,
systems and human resources, to produce products and services that meet
the quality, performance and price aspirations of its customers. At the
same time maintain the highest standards of ethics and social
responsibilities.
This mission is what drives Hero Honda to new heights in
excellence and helps the organization forge a unique and mutually
beneficial relationship with all its stakeholders.
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KEY POLICIES :
An Environmently and Socially, Aware Company:
At Hero Honda, our goal is not only to sell you a bike, but also to
help you every step of the way in making your world a better place to live
in. Besides it will to provide a high-quality service to all of its customers,
Hero Honda takes a stand as a socially responsible enterprise respectful
of its environment and respectful of the important issues.
Hero Honda has been strongly committed not only to
environmental conservation programs but also expresses the increasingly
inseparable
balance
between
the
economic
concerns
and
the
environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve
mankind.
"We must do something for the community from whose land we
generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal :
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Environment Policy:
We at Hero Honda are committed to demonstrate excellence in our
environmental performance on a continual 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, where viable and strengthen 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 particular, in the areas of oil,
water, electrical energy, paints and chemicals.
Enhance environmental awareness of our employees and dealers /
vendors, while promoting their involvement in ensuring sound
environmental management.
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Quality Policy:
Excellence in quality is the core value of Hero Honda's philosophy :
We are committed at all levels to achieve high quality in whatever we
do, particularly in our products and services which will meet and exceed
customer's growing aspirations through:
Innovation in products, processes and services.
Continuous improvement in our total quality management systems.
Teamwork and responsibility.
Safety Policy:
Hero Honda is committed to safety and health of its employees
and other persons who may be affected by its operations. We believe that
the 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.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work
places. Promoting safety and health awareness amongst employees,
suppliers and contractors.
Continuous improvements in safety performance through precautions
besides participation and training of employees.
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PROMINENT AWARDS TO THE COMPANY:
Year Awards & Recognitions
2008 (NDTV Profit Car India & Bike India Awards - Bike Manufacturer
of the year)
Overdrive Magazine - Bike Manufacturer of the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
2007 The NDTV Profit Car India & Bike India Awards 2007 in the
following category:
Overall "Bike of the Year" - CBZ X-treme
"Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Bike Technology of the Year" - Glamout PGM FI
“Most Trusted Company" I by TNS Voice of the Customer Awards
2006).
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top
Indian Two Wheeler Company)
One of the 8 Indian. companies to enter the Forbes top 200 Hst of
world's most reputed companies.
No. 1 in automobile industry by TNS Corporate Social
Responsibility Award.
Best in its class awards for each. category by TNS Total Customer
Satisfaction Award 2006
Splendor Plus (Executive)
CD Deluxe (Entry)
Pleasure (Gearless Scooters)
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Top Indian company in the Automobile - Two Wheeler sector by
Dun & Bradstreet - American Express Corporate Awards 2006
Hero Honda Splendor rated as India's most preferred two-wheeler
brand at the Awaaz Consumer Awards 2006.
The NDIV Profit Car India & Bike India Awards 2006 in the
following category:
Bike Maker of the Year
Bike of the Year - Achiever
Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)
2005 Awaaz Consumer Awards 2005 - India's most preferred twowheeler
brand by CNBC in the 'Automobiles' category)
Bike Maker of the Year Award by Overdrive Magazine
ICWAI National Award for Excellence (Second) in Cost
Management 2004 in the private sector category by ICWAI
10th Motilal Oswal Wealth Creator Award for as the most
consistent
wealth creator for the period 1991-2005
2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies)
GVC Levell (Highest Rating) by CRISIL for corporate Governance
Corporate Excellence Award 2004 by Indian Institute of Materials
Management.
ICSI National Award for Excellence in Corporate Governance 2004
by The Institute of Company Secretaries of India
2003 Winner of the Review 200 - Asia's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies
Most Respected Company in Automobile Sector by Business World
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Bike Maker of the Year by Overdrive Magazine
2002 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia's Leading Companies Award (4th
Rank amongst the top 10 Indian companies)
Company of the Year of ET Awards for Corporate Excellence.
3rd in 'Best Financial
Management' and 'Best Operational
Efficiency' category, ranked 6th in 'Overall Best Investor Relations’, by
Asiamoney.
Highest Wealth Creating Company of the Year Award by the
Money
GVC Levell (Highest Rating) by CRISIL for Corporate
Governance
2001 Bike Maker of the Year by Overdrive Magazine
Winner of the Review 200 - Asia's Leading Companies Award (9th
Rank amongst the top 10 Indian companies
Winner of Three Leaves. Award for showing Corporate
Environment Responsibility in the Automobile Sector by Centre
for Science & Environment
1999 National Productivity Award for the Best Productivity Award in the
category of Automobile & Tractor presented by Vice President of
India.
1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on
being ranked 9th amongst the most investor rewarding companies
in
India.
1995 National Award for outstanding contribution to the Development of
Indian Small Scale Industry (NSIC Award - Presented by President
of India)
1991 Economic limes-Harvard Business School Award for Corporate
Performance to Hero Honda Motors Ltd.
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BOARD OF DIRECTORS :
No.
Name of the Directors
1
Mr. Brijrnohan Lan Munjal
Chairman & Whole-time Director
2
Mr. Pawan Munjal
Managing director
3
Mr. Toshiaki Nakagawa
Joint Managing Director
4
Mr. Yutaka Kudo
Whole-time Director
5
Mr. Om Prakash Munjal
Non-executive Director
6
Mr. Sunil Kant Munjal
Non-executive Director
7
Mr. Tatsuhiro Oyama
Non-executive Director
8
Mr. Masahiro Takedagawa
Non-executive Director
9
Mr. Takashi Nagai
Director
10
Mr. Narinder Nath Vohra
Non-executive and Independent Director
11
Mr. Pradeeep Dinodia
Non-executive and Independent Director
12
Gen. (Retd.) Ved Prakash
Non-executive and Independent Director
Malik
13
Mr. Analjit Singh
Non-executive and Independent Director
14
Dr. Pritam Singh
Non-executive and Independent Director
15
Ms. Shobhana Bhartia
Non-executive and Independent Director
16
Dr. Vijay Laxman Kelkar
Non-executive and Independent Director
17
Mr.Sunil Bharati Mittal
Non-executive and Independent Director
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HERO HONDA SUPER SPLENDOR SPECIFICATIONS
Specifications
Engine/ Transmission
Engine
4-Stroke OHC, Single Cylinder, Air
Cooled
Bore Stroke
52.4 57.8 mm
Displacement
124.7 cc
Compression Ratio
9.1 : 1
Max power
6.72 Kw (9 BHP( @ 7000 rpm
Torque
10.35 Nm @ 4000 rpm
Max Speed
90 Kmph
Clutch
4 – Speed Constant Mesh
Final Drive
Roller Chain
Electricals
Ignition
Digital – CDI Ignition (AMI)
Advanced Micro Processor Ignition
System
Head Light
12V – 35 W Multi Reflector
Halogen Bulb – AC Type
Starting
Kick Start Self Start (Optional)
Tyres
Front
2.75 18 – 4 PR/ 42P
Rear
2.75 18 – 6 PR / 48P
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Specifications
Engine/ Transmission
Brakes
Front Drum Type
Internal Expanding Type – 130 mm
Dia
Front Disc Type
Hydraulic Disc Type – 215 mm Dia
(Optional)
Rear
Internal Expanding Type – 130 mm
dia
Suspension
Front
Telescopic Hydraulic Fork
Rear
Swing Arm with Hydraulic Shock
Absorbers
Dimensions
Dimensions (LXWXH)
1995 735 1095 mm
Wheel Base
1265 mm
Ground Clearance
150 mm
Kerb eight
117 Kh (Kick Version)
121 Kg (Self Version)
Frame
Tubular Double Cradle
Fuel Tank Capacity
12 Ltrs. (Min)
Colours Available
Black, Silver,Red, Blue, Maroon
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RESEARCH
AND DEVELOPMENT
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RESEARCH AND DEVELOPMENT:
The Hero Honda first accessed Honda technology in 1985-86
through a technical collaboration. Since then, your company has access to
some of the best automobile research technology in the world. Over the
year we have also collect huge amount of market feedback data. This has
given us considerable insights into Indian conditions and segment-centric
customer requirements. This domain knowledge, combined with strong
products backed by Honda R&D is primary reasons for Hero Honda's
success.
Your company's R&D is now on line with the Honda factory in
Kumamoto for instant data transfer. This help in the transfer of design
data instantly, and facilities quicker responses to the market. Honda's
R&D office in Gurgaon India also collaborates with Hero Honda in India
for day to day activity.
Meanwhile, over the years, your company has honed its own
research capabilities. This has helped in large-scale localization and
integration allowing the company to keep costs low even at the time of
initial launch. Not only that, your company's R&D has already developed
requisite infrastructure and expertise to develop, test and approve
products in-house as per Hero Honda specifications and acceptance
criteria.
These facilities are upgraded from time to time, ahead of new
technology adoption. For example, during the year in review, your
company trebled its R&D capital expenditure. ~s in turn allowed us to
launch state-of-the -art bikes with a high local content.
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METHODOLOGY:
RESEARCH:
Research in common parlance refers to search for knowledge. One
can also define research as a "scientific and systematic search for
pertinent information on a specific topic”. In fact, research is an art of
scientific investigation.
According to Clifford Wood "research comprises defining and
redefining problems, formulating hypothesis or suggested solutions;
collecting, organising and evaluating data; making deductions and
reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis".
RESEARCH DESIGN:
"Research design is the plan. Structure and strategy of investigation
conceived so as to obtain answers to research questions and to control
variance."
-According to Kerlinger
"A research design is the specification of methods and procedures
for acquiring the information needed. It is the over -all operational
patterns or framework of the project that stipulates what information is to
be collected from which sources by what procedures. "
-Green & Tull.
A research design is the overall framework or plan used for the
collection and analysis of the data in the market research project.
In is broadly classified in to three categories.
Exploratory
Descriptive
Casual
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SAMPLING:
Sampling may be defined as selection of some part of an aggregate
or totality on the basis of which a judgment or inferences about the
aggregate or totality is made. It is the process of obtaining information
about an entire population by examining only a part of it. All this is done
on the assumption that the sample data will enable him to estimate the
population parameters. The items so selected constitute what is
technically called a SAMPLE, their selection process or technique called
sample design and the survey conducted on the basis of sample is
described as SAMPLE SURVEY.
In the process of research study we gone through sampling
technique in which we conducted. a sample survey on 100 customers of
HERO HONDA "SPLENDOR", on the basis of which inferences were
drawn.
SAMPLE DESIGN:
A sample design is definite plan for obtaining a sample from a
given population. It refers to the technique or the procedure the researcher
would adopt in selecting items for the sample. Sample design may as well
lay down the number of items to be included in the sample i.e. the size of
sample. Sample designs are determined before data are collected.
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DATA COLLECTION METHOD:
After the research design has been selected next important steps is to
collect the data. It is very vital step since the accuracy if data collected is
dependent upon the data collection method. There are two basic types of
data;
Primary Data Secondary Data
Primary Data
PRIMARY DATA:
Primary Data is collected by direct personal interview of customer
to know about the problems in present vehicle and to collect information
of why attracting more from Hero Honda Splendor. To get this
information we go through with a QUESTIONNAIRE by which we can
get every relevant information regarding our topic.
SECONDARY DATA:
Secondary Data collected from magazines, internet, and newspapers and
also collected from company literature. For collection of secondary data
we follow the same path which is stated above. We go through with web
site of Hero Honda motors, visit PRATHAM MOTORS authorize
showroom of Hero Honda in Pune.
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THEORETICAL
BACKGROUND
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INTRODUCTION OF THE TOPIC:
This particular topic is chosen because in most of the marketing
organization the "Consumer Behavior" plays a vital role of the entire
marketing programmed.
"To study and know more about different customers attitude of
Hero Honda Splendor and what are the reason of purchase Hero Honda
Splendor and needs, wants and desire of consumers."
OBJECTIVE OF THE STUDY:
The main objective of the study is given as follow;
To study consumer's views regarding the Hero Honda Splendor.
To find "out the customers attitude about Hero Honda Splendor price,
quality, appearance.
To find that what feature attracts the customer more in the Hero Honda
Splendor.
To find that customers financial base of purchasing of vehicle.
To study how consumer behavior study helps in marketing program.
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WHAT IS BUYER BEHAVIOR?
The wealth of product and services produced in a country make our
economy strong. Almost all the products, which are available to buyers,
have a number of alternative supplies; i.e. substitute products are
available to consumers, who make a decision to buy products. Therefore,
a seller, most of his time, seeks buyers and tries to please the. In order to
be successful, a seller is concerned with.
Who is the customer?
What do consumer buys?
When do consumers buy?
How do consumers buy?
From where do consumers buy?
Why do consumers buy?
A buyer makes a purchase of a particular product or a particular brand
and this can be termed "product buying motive.”
And the reason behind the purchase from a particular seller is "patronage
motives."
DEFINITION:
"The process where by individuals decides whether, what, when,
how and from whom to purchase goods and services can be termed as the
customer's behaviour."
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WHAT ARE BUYING MOTIVES?
You purchase a product, because of certain motives. Motives refer
to thought, urge, strong feelings, emotion, drive etc. they make a buyer to
react in the form of a decision. Motivation explains the behaviour of a
buyer. Motives induce a consumer to purchase a particular product.
The motives may be generally controlled by economic, social,
psychological influences etc.
When a consumers buy s a product; his aims are desire for security,
rest, comfort, curiosity, self-preservation, fashion etc. people purchase
product urged by mental and economic forces, which crate a. desire; and
this desire is satisfied by the articles displayed for self. Motive is an inner
urge that prompts one to action; it is not a more desire. The stimulated
desire is called a Motive.
Here we are concerned with consumer behaviour and the consumer
is the important factor. 'Buyer behavior is all psychological, social and
physical behaviour of potential customer, as they evaluate, purchase,
consume and tell others about the product and services."
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WHAT IS A CUSTOMER? :
A customer is the most important person ever in this office... ..in
person or by mail.
A customer is not dependent on us. . . ..
We are dependent on him.
A customer is not an interruption of our work...
He is the purpose of it. We are not doing a favor by serving by
him….
He is doing us a favor by giving us the opportunities to do
so.
A customer is not some one to argue or match wits with. Nobody ever
won and argument with a customer.
This particular topic is chosen because in most of the marketing
organization the "Consumer Behaviour" plays a vital role of the entire
marketing programmed.
"To study the know about of the different customers attitude about
the Hero Honda Splendor and why the reason of purchase Hero Honda
Splendor and needs, wants and desire of consumers."
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DATA ANALYSIS
&
INTERPRETATION
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PURPOSE OF USING VEHICLE :
Purpose
Respondents
In %
College
14
14
Services
29
29
Shopping
8
8
Business
41
41
Professional
8
8
100
100
Total
PURPOSE OF USING VEHICLE:
8%
14%
College
Services
Shopping
29%
41%
Business
Professional
8%
COMMENT:
Above graph shows that 41% people uses of vehicle for his
business purpose, 29% people for service, 14% for college and 8% people
use for shopping and professional use respectively. In this chart most of
people using vehicle for his business purpose.
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COLOR OF SPLENDOR PEOPLE LIKE MOST:
Colour
Respondents
Black
50
Silver
20
Red
17
Blue
10
Green
03
Total
100
COLOR OF SPLENDOR PEOPLE LIKE MOST:
10%
3%
Black
17%
Silver
50%
Red
Blue
Green
20%
COMMENT:
Above graph show that, 50% peoples most like Black colour, 20%
peoples like Red, 17% like Silver, 10% like Blue and last only 3%
peoples like Green colour.
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KNOWING ABOUT THE PRODUCT:
Media
Respondent
In %
Newspaper
10
10
Magazine
7
7
T.V.
8
8
Dealer
30
30
Friends
42
42
Internet
3
3
100
100
Total
KNOWING ABOUT THE PRODUCT:
3%
10%
7%
Newspaper
8%
Magazine
T.V.
42%
Dealer
Friends
Internet
30%
COMMENT:
In this chart 42% people know about Splendor from his friends,
30% people from the Dealers, 10% and 7% from Newspaper and
Magazine respectively, 8% from T.V., 3% from the Internet.
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Occupation v/s The most preferred purchasing feature of vehicle
Different feature of Hero Honda Splendor
Occupation Style Technology Brand Mileage quality
Total
Driving
performance
Student
5
4
5
0
0
4
18
Govt.
0
0
1
0
0
3
4
Employee
Professional
3
2
3
0
1
1
10
Services
2
4
12
1
3
5
27
Self
8
6
12
2
2
11
41
Employee
Total
18
16
33
3
6
24
100
Style
tech.
Brand
mileage quality
driving
Performance
COMMENT:In this graph self-employee person ratio is 41% and it purchase
Feature is company brand name and driving performance of Hero Honda.
This ratio is 33% and 24% respectively.
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Family Income V/S Mode of Purchase Vehicle:Family
Income / Month
5000-10000
10000-15000
15000-20000
20000 & above
Total
Mode of purchase vehicle
Self finance
Finance
through banks
2
14
25
22
12
13
8
4
47
53
Total
16
47
25
12
100
Comment:In that most of respondent whose family income lies between 10,000
to 15,000 there ratio is 47% and they purchase vehicle on cash basis.
Remaining 53% go with finance through banks.
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Customers with respect to different feature of the vehicle:Feature
Price
Mileage
Style
Quality
Maintenance
Brand image
Total
Satisfaction
6
29
22
23
12
8
100
Dissatisfaction
12
25
11
19
26
7
100
Feature of satisfaction and dissatisfaction
Price
Mileage
style
quality
Maintenance
Brand image
Comment:Above graph shows that 29% people satisfied with mileage but 25%
people don’t satisfied with average, and 26% people dissatisfied with
maintenance because spare cost are high. Other side 23% satisfied with
quality of the vehicle.
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FINDINGS
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FINDINGS :
Pune city has reasonable population of businessmen, services class,
and students. They invest money and satisfied wants & need and product
choice and durability.
The age group 31- 35 year people using splendor it covers 34% of
total market area and also age group 36 year and above using more
this vehicle, it cover 20% from total population. It means middle age
person is more using Splendor.
Most of the respondents are from Rs. 10000 to 15000 monthly family
income groups.
There are four main features that attract customer more. These Hero
Honda brand image driving performance, mileage, and quality of the
product. The most features are found in Hero Honda Company
vehicle.
The student like look out of the vehicle, business like brand image,
quality and average, the services class prefers the prices and average
of that.
Most of the people are using vehicle for own business purpose use and
also services.
The reason of purchasing Hero Honda Splendor is capacity for buying
and new came up in the market. The ratio of that 33% and 30%
respectively.
The main media of customer knowledge is about the product by
friends (exiting users), and dealers.
The purchase decision of the respondents is taken by him.
The black color of Splendor is most like to the people and attract to
the customer and also red and silver next choice.
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SUGGESTION
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SUGGESTION:
Sales promotion activities (discounts, free gifts, festival offers) should
be adopted to enhance sales figure.
Because of drastic reduction in taxes on two wheeler vehicles the
manufactures reduces the price of the two wheeler. So there may be
large scope for company to increase the sale and market share also.
Company should design schemes to maximize sale.
India's growth performance of the last decade and a half ranks among
top six in the world growth league & in purchasing power terms, the
growth puts top four in the world with these positive signals company
has to focus more on new entrants in the industry.
Continuous focus would be given on Cost management & their
operating efficiency would enable the company to lower down their
(co's) per unit cost to give maximum benefit to their customers, which
may likely to delight them in the available opportunity.
After selling 5 million units of splendor company should be
concentrate on "Customer Relationship Management”.
More authorized service centers backed with prompt services should
be open in remote & distant location of the country.
Before introducing the new product in the market company has to
conduct a market survey to know consumer behavior like and dislike
and there preference. To study how consumer actually takes buying
decision.
Innovation in products, process and services attract new customers as
well as give satisfaction to existing consumers.
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CONCLUSION
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CONCLUSION:
After the completion of the study, it is concluded that customer buying
behaviour is complex in nature and their needs, wants and purchasing
decision changing for time to time, to satisfied their needs or demand of
product changing in new scenario is the first priority of the company.
Company should be committed towards products and services, which will
meet and exceed customers growing aspiration.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
1) Principles of Marketing
- Philip Koter
Gary Armstrong.
2) Marketing mgt. 12th edition
- Philip Kotre
- Kevin lane keller.
3) Marketing Research
- G. C. Beri
3) www.yahoo.com
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QUESTIONNAIRE
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QUESTIONNAIRE
ON CONSUMER BUYING BEHAVIOUR OF HERO HONDA
SPLENDOR
NAME :
……………………………………………………………………………..
ADDRESS :
……………………………………………………………………………..
AGE : …………….
Occupation :
……………………………………………………………………………..
Education :
……………………………………………………………………………..
Income (Monthly) :
……………………………………………………………………………..
Family Income (Monthly) :
……………………………………………………………………………..
APPLICABLE TO PRESENT VEHICLE OF OWNER :
Which type of vehicle you are using?
……………………………………………………………………………..
Which company and model vehicle you have?
……………………………………………………………………………..
What are the features of satisfaction in your vehicle?
……………………………………………………………………………..
What are the features of Dissatisfaction in your two-wheeler?
……………………………………………………………………………..
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USAGE ABOUT TWO-WHEELER :
How much distance you travel in a week?
……………….. K.M.
What purpose do you use your Vehicle?
Job
Business
College
Is there someone other then you will ride Hero Honda Splendor?
Yes
No
If yes, who will ride Hero Honda Splendor?
…………………………………………………………………………
QUESTION ABOUT BUYING DECISION :
What are the reasons for buying a vehicle?
……………………………………………………………………………
What were the reasons for your buying Hero Honda Splendor?
Style
Technology
Brand
Mileage
Quality
Driving Performance
Which colour of Hero Honda Splendor you like most?
……………………………………………………………………………
How did you come to know about Hero Honda Splendor?
……………………………………………………………………………
What bases you purchase vehicle?
Cash
Financial institution
Bank
Do you think purchase Hero Honda Splendor, in next 6 month?
Yes
No
If yes, how much time you are ready wait for that?
…………………………………………………………………………
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Suggestion :
…………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
……………………………………………………………………………
Thank you
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