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Submitted in partial fulfillment of the requirement of Bachelor in business administration (BBA), from Guru Jambheshwar University of science and technology.

Training supervisor ANMAMIKA CHOPRA

Submitted by Ajit Kumar

Enroll. Id -048820189
Batch: 2004-20007








HERO and HOND first come together for a possible joint venture to inter the automobile market in 1948. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. It has also been established itself as the worlds largest manufacturer of the motorcycles, commanding 25% of the motorcycle market and nearly 50% of the Japanese market.


My first and foremost thanks to God Almighty ho helped me to complete my project work. I take this opportunity to express my profound gratitude to Mrs. Shilu (project incharge) whose support and suggestions were immense in enabling the successful completion of this project. Finally, my hearty thanks to my parents and friends for their moral support, suggestions and encouragement.




The Honda motor company was incorporated in 1948. Since its inception, Honda has become the large Japanese industrial concern among those companies incorporated after World War II. It has also been established itself as the worlds largest manufacturer of the motorcycles, commanding 25% of the motorcycle market and nearly 50% of the Japanese market. Today Honda is acknowledged as the undisputed leader in the motorcycle technology. Recognized the world over as a pioneer, the Honda name is guarantee of the technological and the manufacturing excellence of any product. Honda other areas of product excellence include Automobiles and Power products (Lawn Movers, generators and Outboard motors.) Honda motor company has 83 overseas production

facilities in 35 countries looked after by 93000 strong force. In 1995 its

consolidated sales amounted over Rs. 140000 crores. Hero Honda Motors Ltd. Unit II is located at 37th km stone from Delhi on DelhiJaipur highway at Gurgaon (Harayana), amidst clean industrial surroundings with wide-open green areas and lawns. The factory building itself is refreshingly different. The plant layout is so designed as to ensure maximum movement of men and material. Maximum attention is paid to the employees convenience and mobility. The emphasis on quality is apparent in the clean and congenial working environment in which the employees can put in their best. Advanced integrated technology can be seen at work in every operation be it Press shop, Weld shop, Engine assembly, Frame assembly and final inspection. An outstanding feature is the most sophisticated and advanced Engine Plant for the manufacture of the engine components. Another highlight is the efficient water treatment plant. After treatment the water is pumped into artificial lakes used for horticulture. As the modern and technology in the world would come to naught without the corresponding development of the human values and attributes. Hero Honda management has realized this need and have made a conscious effort to create unique work culture in the

company. The culture has evolved through a unique synthesis of the Indian and Japanese styles of management. 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 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 fullyequipped 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 that are ahead of their time. Hero Honda was also one of Indias 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 that 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. 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 percent of the population has been penetrated so far! It is not 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 Indias motorcycle industry, and its our responsibility now to take the industry to the next level. We will do all it takes to reach there.


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 its 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 inseparable

programmes balance


also the

expresses economic


increasingly 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 Worth Chairman Mr.Brijmohan Lall Munjal.


Expansion plans and future outlook

Earlier, HHML has faced capacity constraints and lost significant market share to competitors during FY95 and FY96. With demand for motorcycles on the upward curve, the company commissioned a new plant at Gurgaon, with a capacity of 150,000 vehicles pa in FY97. Capacity at Dharuhera plant in Haryana has also been expanded from 300,000 vehicles to 350,000 vehicles during F.Y. 98. In the future too the company has indicated to invest in capital equipment and regularly introduced new models. The future outlook for the motorcycles segment looks positive with it capturing a larger share of the cake from scooters. With customers having become more discerning in terms of features and aesthetics, their preference has shifted towards bikes. With adequate manufacturing capacities and a leading world player as its partner, HHML is well be intended entry of Honda in the two-wheeler market two year hence.



Hero Hondas mission is to strive for synergy between technology, system and human resources, to produce product and services that meet the quality, performance and price aspiration 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 stake holders.


Records a growth of 21% sales in Q1 of 2006-07 Hero Honda, the World no.1 two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of the FY


2006-07. For the quarter ending June 2006, the company achieved cumulative sales of 8,32,692 units, recording a growth of 21.29% compared to the same period last year. During the corresponding period last financial year, the company had recorded sales of 606494 units in the first quarter ending june2005. In June 2006, the company sold 278660 units registering an impressive growth of 23.26% as against 226073 units in June last year. During the month, Hero Honda launched Glamour F1- Indias first Fuel Injection motorcycle. The new technology eliminates rhe need for a carburetor, offers the most comfortable drive and the lowest emission, in addition to host of other features, which is now available for the first time to Indian two wheeler riders.


Total Sales

Jan 06 249450

Jan 07 297554

FY 05-06 2477744

FY 06-07 2778326


HHML has a strong network of ancillaries comprising inter alias, a number of Munjal group companies such as Munjal Castings, and Munjal Showa. Also there are dedicated vendors like Rico Auto. HHML has indigenous more than 95% of its components. In line with Honda philosophy, HHML source most of its component

requirement from third party vendors. This allows greater flexibility in production planning. Materials cost is relatively high and overheads are lower.

Social Contributions:








development in a large agrarian economy like India, by assimilating our rural sub systems to the main steam of development. By doing so we can rural income, generate employment and can profit basic amenities in the rural areas. In the process of procuring the ISO 14001









management program which, inter alia, includes the training of 400 employees and codification of guidelines for the control of wastage of resources. The tree plantation plan of the company continues with the same vigor.


In continuation of its pursuit to increase its Export Base, Hero Honda Motors participated in SAARC & CII Trade Fairs. The response of the product shown in the fairs was very encouraging & the company expects to clock higher exports sales during the current Financial Year. During the Year under review Guatemala, Chile & Costal Rica were added as new product & service markets.


Their operations cover spectrum of consumer and industrial application including motorcycles, mopeds, automotive components and industrial supplies. In each of these areas Hero is a pioneer and a leader. Hero Cycles Ltd. is in the Guineas Book of World Records as the worlds largest bicycle manufacturer.


Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle. Hero-PACER, PANTHER and ANKUR produced by majestic auto Ltd. are among the most popular mopeds in the country. Other companies in the HERO galaxy are Gujrat Cycles Ltd.: Indians most advanced bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier of the stock industries: brand leader in shafts and hubs; Highway Cycle industries: manufacturing free wheels and Sunbeam Castings: making precision non-ferrous castings. Modern technologies for systems have transformed the profile of HERO. Yet the formula for success is unchanged A drive for quality and economy. A commitment to ancillary development and uncompromising attention to the common mans need




HERO CYCLES HERO CYCLES GUJARAT LIMITED LIMITED (UNIT CYCLES II) LIMITED Established in 1956 in Ludhiana Product : Bicycles Established 1988 Sahibabad Product: Bicycles in Established in in 1988 in Baroda Product : Bicycles




HERO MOTORS (A DIVISION OF MAJESTIC AUTO LIMITED) Established in 1988 Ghaziabad Product : mini motorcycles Collaborator: steyr daimler punch, austria product: scooters, collaborators: Malguti, Italy. MUNJAL SHOWA LIMITED

Auto-Two Wheelers

Established in 1983 New Delhi Product: motorcycles collaborator: Honda motor co. Ltd., Japan

Established in 1978 Ludhiana Product : mopeds & fitness equipment



HIGHWAY CYCLE INDUSTRIES LIMITED Established in 1971 Ludhiana Product: Freeweheels & Special Machine Tools

Bicycle and Established in Auto 1960 Ludhiana Components Product :Automotive & Bicycle Chains; Steel & Aluminium Hubs.

Established in 1985 Gurgaon Product : Stock Absorbers Collaborator: Showa Manufacturing Co. Japan




SUNBEAM CASTINGS Established in 1987 Gurgaon Product : Nonferrous Castings HERO CORPORATE SERVICES Established in 1995 New Delhi Product: Corporate Service in Finance, HDR, IT & Strategic Planning

HERO CYCLESCOLD ROLLING DIVISION Established in 1990 Ludhiana Product : Cold Rolled Steel Sheets and Coils MANJAL SALES CORPORATION Established in 1975 Ludhiana Product: Sole Selling Agents of Bicycles and Bicycles Parts for India.

Castings steel

and Established in 1981 Ludhiana Product : Nonferrous Castings HERO EXPORTS



Established in 1993 Ludhiana Product : International Trading Company dealing in Commodoties & Engineering Items



The corporate objectives of the company are: 1. To supplies the products of highest quality at the reasonable price for customers satisfaction and for the benefits of the society in general. 2. To provide concerned person with happiness in associated with the company. 3. To offer joy to vendors supplying the components. 4. To offer joy to dealers of selling the products.



Hero Honda Motors Limited was incorporated on 19th January 1984 as a result of a joint venture collaboration between the worlds largest manufacturer of Motorcycles Honda Motor Company of Japan and the worlds largest manufacturer of bicycles Hero Group. The Honda Motor Company of Japan and the Hero group both contribute an equal 26% share in the equity, with the rest being with the public. Hero Honda is today the largest 100-cc motorcycle selling company in the Indian market. Hero Honda motorcycles have become synonymous with economy and set standards in the Indian twowheeler market for their fuel efficiency, low emission levels and better quality. All this along with the fact that the companys products are designed for the Indian market and driving conditions gives it a distinct competitive edge. Hero Honda Motors Limited launched its first motorbike Hero Honda CD 100 in May 1985. After the launch of the first motorbike, it introduced the Hero Honda CD 100 SS, the Street Smart, Hero


Honda Splendor and the Hero Honda CBZ, motorcycles in the Indian market. Hero Honda has acquired around 43% market share in the Indian motorcycle market. The company has a wide network of dealers and service points with emphasis on customer care and service. The company has 360 dealers in India. Hero Honda is the only Twowheeler Company, which has introduced automated workshops at all major dealership showrooms. The company has 220 automated workshops in India. In 1990-91, Hero Honda promoted a companyHero Honda Finlease, to provide lease finance to its customers. Hero Honda was awarded the Best Productivity performance award by the National Productivity Council for the Automobile industry for the year 1990-91. The company also received the Economic Times Harvard Business School Association of India award against 200 strong contenders. The company apart from being the market leader in the Indian motorcycle market also fulfills its obligation to the society. It operates a mobile dispensary van in the service of those living within 10Kilometer radius from its plant. Hero Honda also conducts eye-camps each year also cataract operations on a charitable basis. The company has, also established the Raman Kant Foundation, a trust to work exclusively in the area of socio cultural and educational developments.



Research Methodology is a way to systematically solve the research problems. Following steps have to be taken to obtain a correct result. 1. Define Research problem clearly 2. Formulate Hypothesis 3. Develop Research design 4. Collect Data 5. Analysis of Data 6. Interpret and Report These steps were not fully followed in this study as the research was not numerically inclined and was not based on primary data. In this final project the topic is related to the Marketing Research and analysis. The study of my research is descriptive and is related to the motorcycle industry. This is the topic, which falls under market


leadership, competition, strategies and other policies of motorcycle Industry. As my study was more focused on the strategic position of the key players in the industry, the data was collected primarily through secondary source. Though some dealers and showrooms were informally visited, and some information was collected through an unstructured interview. METHODOLOGY USED

1. Research Design







Descriptive Research, because the study required an in depth. Look into the Motorcycle market; it's structure and Status. 2. Data collection Method The basis of this project is the information collected through Secondary data. In order to get the view of those related in this market, some dealers and showrooms were informally visited. 3. Data Source All the information were primarily collected through Business Magazines, Newspaper

cuttings, Internet sites.


The structure of this research was decided while keeping readers in mind. It is an attempt to put forward my study in easy and simple language.

OVERVIEW GENERAL INFORMATION Registered and Corporate Office : 34, Community Centre Basant Lok, Vasant Vihar, New Delhi-110057 Tel:6142451 (9 lines,) 6144121 Fax:6143321, 614321, Gram: HONDABIKE DHARUHERA PLANT GURGAON PLANT 69th Km. Stone Delhi- 37TH Km. Stone Jaipur Highway Delhi-Jaipur Highway Dharuhere-122100 Gurgaon-122001 Dist. Rewari Haryana (Haryana) Tel: 01283- Tel:0124-372129-29 42131-35 Fax: 0128- Fax: 0124-37314142399 42 54 Kms. 60 Kms. 22 Kms. 28 Kms.


Distance of Work International Airpot Head Office Area Total Covered Technical & Financial Collaborators

: : : : :

2,48,000 sq. mts. 2,83,360 sq. mts. 61,200 sq. mts. 24.7& 51,200 sq. 18.07% Honda Motors Co. Ltd. No.1 1, 2 Chome Minami aoyama, Minato Ku, Tokyo 107, Japan Tel: 3-3423-111 Telex: J22678 HONDAMATR Fax: 3-3423-2442




Marketing is challenging and exciting. The solving of marketing problems required insight, experience and analytical ability. Take the case of a company faced with the problem of increasing its sales. Increase in the sales at the expense of profits may not be a desirable objective. Again there are many ways in which sales can be increased, e.g. by finding new customers or selling more to existing customers, by increasing advertising and by reducing the price. The marketing manger must decide which strategy or combination of methods he should adopt for increasing his sales profitably. He must also keep in touch with the changing needs and desires of the consuming public as well as his competitors activities. Thus marketing is interesting, as it required the marketing manger to be dynamic and not complacent for continuous prosperity of his organization.



However the meaning of marketing is not often clear to people who use the word. To a salesman it means selling whereas to an advertising manger it means advertising. High-sounding definitions have also been advanced. For example, Paul Mazur defined it as the delivery of a standard of living of society. Thus was expanded by Prof. Malcolm McNair to the creation and delivery of a standard of living. Marketing is the primary management function which organizes and directs the aggregate of business activities involved in converting customer purchasing power into effective demand for a specific product or service and in moving the product or service to the final consumer or user so as to achieve the company-set or other objectives. (A)RELEVANT MARKETING FORCES Consumer habits. Consumer attitudes and motivations. Trade structures and practices. Trade attitudes and motivation. Types of competition. Relation of supplies and price to demand.

Position and share of the market.

Trends of competitive behavior. Government controls, which are applicable.



A Product is something of value that is offered for sale or hire with the aim of satisfying customer needs. It is a bundle of satisfaction that the customer buys. A product may be a tangible offer to the market, which includes product quality, variety, design, features, branding etc. It may also be intangible such as provision of a service like training or education etc. Many products may have tangible as well as intangible attributes. For example Daewoo Cielo car is the tangible product and after sale services and mobile repair anywhere is an intangible service. Product Line A product line refers to a group of product clubbed together because they have one of the above-described characteristics in common. The number of product lines carried by a firm at a given point in time is a function of its resources and competitive position.


Product Width

This refers to the number of different product lines marketed by a firm. Product Depth

This refers to the numbers of product items and their variations (like size, packaging, colours, etc) offered in each product line.

Product Consistency

This is the degree of similarity between product line in end use, technology and production techniques, distribution channel etc. The ideal product mix is an issue that varies from firm to firm and may be hard to define and come by.


Positioning concerns what is in the minds of consumers, in particular in the minds of your target group(s) of consumers. It is what the consumers think of the product or the firm or their perception of the product offerings of a firm.


It is about the position your firm, the product, and the brand occupy in the minds of particular group of consumers, the attributes they associate with your product, and they have concerning the product. Positioning is something that goes on in the consumers mind.


A brand is a name, term sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them form those of competitors. Branding is a way of labeling your particular product offering to distinguish it from other competitors product offering.

Types of brand names One name Umbrella corporate Name Family Umbrella Names Many different names Range Names Separate individual brand Names



Hero Honda has launched the following motorbikes in the Indian market. Hero Honda CD 100 Hero Honda CD 100 SS Honda Sleek Hero Honda Splendor Hero Honda Street Smart Hero Honda CBZ Hero Honda joy Hero Honda passion Hero Honda Ambition Hero Honda Karizma Hero Honda Dawn A brief description of these bikes is as follows:




CD 100 The original Fill it, Shut it, Forget it bike is Indias first 4stroke bike and is still the Indias foremost. It is an economical and reliable bike, which has the ability to go on and on, year after year. The CD100 4-stroke engine is derived from Hondas tough economic series range of engine, which makes it, fuel-efficient. The bike is economical and easy to maintain with optimal oil circulation of 50ml, for every 1000 kilometers. It has separate oil circulation in the engine. Hence no possibilities of carbon deposits on piston rings, spark plug and no silence to worry about. CD 100 is an improved, easy to ride bike, with illuminated speedometer with a colour- marked economy zone indicating cruising range. The bike has a 97.2 cc, 7.2 hp at 8000- rpm engine. It has an electronic ignition and it weighs at 107 kg (kerb weight). It gives the maximum speed of SO kilometer per hour. CD 100 comes in a four speed constant mesh all foot shift gears. The bike is priced at Rs. 37000(ex-showroom Delhi) and at Rs 36000 (ex showroom Mumbai. CD 100 is available in four colours


candy Ruby red, Black, Amazing Blue metallic and sierra green metallic). The bike confirms to the year 2000 Euro emission norms.


The CD 100 SS is a bike that is meant to take on the toughest riding condition, while continuing to enjoy the legendary fuel economy. The CD 100 SS adds a new dimension of strength to Hero Hondas world famous four-stroke technology. The bike has a 97.2 cc, 7.2 hp at 8000 rpm. It has a large ground clearance of 165 mm and it weights at 112kg(kerb weight). The CD 100 SS has wider tyres, to grip the road in any condition giving it improved cornering stability and safety. The bike has large reinforced shock absorbers, to soak up bumps on unkind roads, to protect the bike and to give the ride more comfort. CD 100 SS also has an engine guard, to protect and engine from the assault of sand, mud and stones, therefore giving it improved performance. The bike comes with a transmission of 4-speed, constant mesh, all feat shift gear and it has an electronic ignition. The CD 100SS has a fuel tank capacity of 10.1 liters (including 2.8 liters reserve). CD 100SS is priced at Rs. 39,000(ex-showroom Delhi) and at Rs. 37,000


(ex-showroom Mumbai). The bike is available in the following colours (Candy Ruby Red, Black, Amazing Blue Metallic, Sierra Green Metallic and Classy Maroon Metallic).


Hero Honda Sleek is a 97.2 CC1, 4-stroke, single cylinder, air-cooled bike, that comes with a Electronic Ignition. The bike has a Multi-plate wet clutch and it comes with a transmission of 4-speed constant mesh, all foot shift gears. It has a Backbone frame type. The Sleek has a maximum power of 7.0 hp2 @ 8000 rpm and it gives a maximum speed of 85 Kilometers per hour. The bike has a ground clearance of 165 mm. And It has a dry weight of 100 Kilograms. The Sleek has a fuel tank capacity of 10.3 liters (including 1.4 liters reserve).


Hero Honda Splendor the worlds largest selling motorbike is a 4stroke, 100cc-driving machine. It has smashing good looks and gives excellent performance. The bikes new engine gives unprecedented


fuel efficiency. It has a well-cushioned Long-slung seat that helps the rider to rest and ride at the same time. Splendor has very good suspension, which works so well, that one may never be able to find out what happens between the tyres and the bumpy roads. Splendor is a bike that met the pollution control standards of 1990s. Splendor comes with a transmission of 4-speed Constant Mesh all foot shift gears. It has an Electronic Ignition and it weight at 90 Kilograms (Kerb weight). The bike has a maximum power of 7.5 Ps at 8000 rpm and it gives a maximum speed of 85 kilometer per hour. The Splendor has a tabular double crable type frame. The bike has a wheelbase of 1230 mm and a ground clearance of 159 mm. Hero Honda Splendor is priced at approximately RS 41,000 (exshowroom Delhi) and at RS 39,000 (ex-showroom Mumbai). The Splendor is available in the following colours (Black, Candy Ruby Red, Blaze Blue silver Metallic, Sierra Green Metallic and Hi Cranite Blue Metallic). The Splendor conforms to the year 2000 Euro emission norms.

HERO HONDA STREET SMART Hero Honda Street Smart is a 4-stroke, 100cc bike, which delivers great pick-up, and the bike is reasonably priced. The Street Smart comes with trendy front shield, which makes it more sturdier safer and


smarter. The bike has Rotary gears and Auto-Clutch, which makes it amazingly maneuverable. It has a storage box, which makes it easy to carry bags, lunch boxes etc. The Street Smart also has an automatic decompression, which makes it easy to start. The bike also comes in a self-start model, which helps to reduce load on the battery and enhances its life. Its a sheer convenience for riding. The Street Smart has Electronic ignition and a background tubular type Frame. It has a ground clearance of 133mm and it comes with a transmission 4-speed constant Mesh all feat shift gears. Street Smart has a wheelbase of 1205 mm. Hero Honda Street Smart is priced at approximately Rs 32,000 (ex-showroom Delhi) and Rs 36,000 (ex-showroom Mumbai). It is available in the following colours (Candy Ruby Red, Black, Sierra Green Metallic and Purple Metallic).


Hero Honda CBZ is a bike that is equipped with five gears and 156.8 CC engine which generates 12.8 Ps power. The bike reaches from 0 to 60 kilometers per hour in just 5 seconds effortlessly touches the top speed of 100 kilometers per hour. The CBZ also has the widest


rear tyre, with a unique tread pattern that is not available on any Indian motorcycle. It also has a large 130-mm drum brakes, and also has an option of front disc brakes, which enhances its braking performance.

The CBZ also has the Transient Power Fuel Control (TPFC) system which helps in giving the bike quick acceleration. The bike also has the trip meter, which measures the distance traveled in a trip. It also has the dynamic vibration dampers incorporated in the handlebar, which ensures that the ride is smooth and easy. The air injection system in the CBZ injects fresh air in to the exhaust part. The unique trapezoidal headlights gives CBZ a stylish look and helps the Rider to see clearly in the darkest to nights. The CBZ also has a multi-lever lockable seat which provides storage space and doubles as an anti theft mechanism for GDI unit RR unit and the battery. The bike also incorporated the zero crank case evaporative emission, pollution control feature so advance, that it is seen for the first time in India. The Hero Honda CBZ is priced at approximately RS 57,000. The bike is available in the following colours (Black, Tasmania Green, Tahitian Blue, Candy Sparkling silver and Candy Blazing Red).



Engine Displacement Maximum Power Gear Box Clutch Max. Speed Frame Suspension Tyre Size Final Drive Battery Ignition Starting Wheelbase Ground clearance Length Width Height Kerb weight Fuel Tank Capacity

Front Rear Front Rear

4-stroke, single cylinder air cooled OHC 97.2cc 7.5 Ps at 8000 rpm 4 Speed constant mesh Multi-plate wet type 85 kmph Tubular double cradle Telescopic Hydraulic fork Swing Arm with 5 step adjustable hydraulic damper 2.75 x 18 x 4 PR 3.00 x 18 3/6 PR Roller Chain 12 V- 2.5 AH Electronic CDI Kick Starter 1235 mm 159 mm 1980 mm 720 mm 1060 mm 116 mm 12.8 litres (Reserve 1.1 ltrs)

SPECIAL PHYSICAL FEATURES OF NEW BORN PASSION PASSION is one of the classiest looking bike HERO HONDA Motors Ltd. has ever made. Truly going by the traditions of its Corporate Image Leading The Way, HERO HONDA Motors Ltd. has designed & introduced a bike truly for the youth of the new century. Its a feast for your eyes



HEAD LIGHT Trapezoidal head light with a multi-reflector lens in a well-designed visor gives the motorcycle a stylish look. The headlight also has a position lamp. It comes in handy* when you head light bulb is not working and can go a long way in providing that extra safety at night.

MUDGUARD FRONT PORTION Enhances safety for the rider.

FUEL TANK Newly designed knee grip fuel tank has a capacity of 12.8 litres with a reserve of 1.1 litres.

STORAGE KIT A large lockable storage space for imported items.


THE ENGINE 4-stroke, 97.2 cc, single Cradle Tubular Frame.

THE SIDE COWLING The integrated side cowl gives a stylish look to the motorcycle. The matching graphics gels very well with the overall sporty look of the motorcycle.

SHOCKERS The rear shocker can be adjusted according to the terrain and the ride is as comfortable on a village road as on a city highway.

SEAT A wide and comfortable seat makes for tireless riding. The seat is lockable tool kit and important papers are safe under it. A helmet holder is also provided.

BACKLIGHT A new design taillight with multi reflector makes PASSON the first two-wheeler to use multi reflectors.


This 133cc engine gives you the lead. A mileage of 79 kmpl"makes sure you stay on the road. And the Regal Crest styling makes you feel kingly. It's time to move up in life. With Ambition, there's no looking back The 133cc engine with an 11 bhp thrust. Ensured through AMIAdvanced Microprocessor Ignition system. A superbly shaped 12.5-litre capacity fuel tank, along with mileage that ensures you comfortably cross many milestones! The styling has a touch of royalty, and is topped with a Regal Crest.


The Karizma features a 223cc, 17PS power pack that accelerates you from 0-60 in 3.8 seconds. Distinctive styling and Mag alloy wheels make this bike stand out before it races away from the pack. Digital ignition and a constant vacuum carburetor facilitate better control of ignition timing.


Priced at Rs. 89,220/- on road Mumbai the Karizma is available in seven attractive shades.


Presenting CD Dawn, the true-value 4 strokes, 100cc motorcycle from Hero Honda. A motorcycle that encompasses the legendary Hero Honda values of fuel-efficiency, economy and rock-solid dependability TOUGH TRACK SUSPENSION The CD Dawn comes with a unique suspension that smoothens and absorbs bumps on unkind roads and provides you with continuous riding comfort.

DOUBLY STRONG TUBULAR FRAME Its double tubular-cradle frame by imparting extra stability to the motorcycle ensures an exceptionally stable ride. This and other features - like the legendary Hero Honda mileage, the first-of-its-kind 2-year warranty in the category and a price that will make you smile, is what makes the new Hero Honda CD Dawn - Value Nayae Zamane Ki



Hero Honda shifted its focus from catering to the fuel efficient conscious consumer to try and occupy other segments of the motorbike market and therefore the new product launches from Hero Honda in the last three year have been in this direction. The company has also upgraded some of its bikes to stay in contention and to meet Euro emission norms. The new underlining theme for the company One for everyone has led to the launching of new products, which are as follows: Street Smart: Hero Honda introduced its Street Smart in 1997. The company who were more inclined towards the scooters and who thought that the scooters were more safer than the 1) thus Hero Honda decided to launch the Street Smart. The bike was built in such a way that it resembled more like a scooter, than a motorcycle, but actually it is a motorbike i.e. it is a hybrid 2) CBZ: Hero Honda introduced the CBZ in 1999. The bike was launched as a result of the changing trends amongst the Indian customers from fuel-efficient bikes that were heavier, more powerful, trendy, stylish and sophisticated. This was done to cater


to those customers who wanted to buy motorbikes for fun, thrill and great driving experience rather than being cost conscious. CBZ was also launched to acquire the market share from the heavy motorbike segments, as the company did not have any heavy motorbike. It was the first time that Hero Honda had made a shift from 100 cc bikes to a 156cc bike. With the launch of these two motorbikes and various other motorbikes in the pipeline, Hero Hondas strategy is to get into those segments of the motorcycle market where they have not made inroads earlier. Hero Honda continues to have the strategy of parity pricing. They have neither taken the root of doing heavy discounting nor have they tried to occupy the premium position. However with the launch of CBZ the company is gradually getting into the area of premium positioning. The company keeps on making changes in the pricing of the bikes, whenever there is an increase in inputs.



Price is one of the important elements of the marketing mix, but lately, it has come to occupy the center-stage in marketing wars. The amount of money that customers have to pay for the product is called price. Price is the amount of value a product a masses in the market. To a manufacturer, price represents quantity of money received by the firm or seller. To a customer, it represents sacrifice and hence his perception of the value of the product. Pricing is the only elements in marketing mix that creates revenue, the other generate costs. Every firm has different Pricing objectives. A firm can choose from the following a) Survival in a competitive market. b) Maximize current profits and return on investment c) Balance price over product line d) Maximize sales growth.



Hero Honda continues to have the strategy of parity pricing. They have neither taken the root of doing heavy discounting nor have they tried to occupy the premium position. However, with the launch of CBZ the company is gradually getting into the area of premium positioning .The company keeps of making changes in the pricing of the bikes ,whenever there is increase in inputs

City Bangalore Calcutta Chennai Delhi Mumbai Pune

Ambition ( Drum & Kick ) Prices (in Rupees) Ex. Showroom On Road Price Price 43,857.00 48,512.00 45,343.00 48,500.00 45,814.00 49,469.00 44,612.00 46,873.00 45,513.00 49,806.00 43,865.00 47,973.00 Ambition ( Disc & Kick ) Prices (in Rupees) Ex. Showroom On Road Price Price 46,514.00 51,413.00 48,066.00 51,400.00 48,663.00 52,367.00 47,461.00 49,770.00 48,283.00 52,820.00 46,530.00 50,870.00

City Bangalore Calcutta Chennai Delhi Mumbai Pune


City Bangalore Calcutta Chennai Delhi Mumbai Pune

City Bangalore Calcutta Chennai Delhi Mumbai Pune

Ambition ( Disc & SelfStart ) Prices (in Rupees) Ex. Showroom On Road Price Price 51,004.00 56,314.00 52,667.00 56,300.00 53,474.00 57,260.00 52,275.00 54,666.00 52,964.00 57,912.00 51,034.00 55,767.00 CBZ Prices (in Rupees) Ex. Showroom On Road Price Price 51,192.09 56,579.71 53,993.73 57,698.73 54,939.00 58,120.00 53,340.74 55,811.74 58,705 63,213 51,799 56,657

City Bangalore Calcutta Chennai Delhi Mumbai Pune

SPLENDOR Prices (in Rupees) Ex. Showroom On Road Price Price 40,948 45,331 41,612 44,550 41,739 45,310 41,080 43,281 41,831 45,763 40,322 44,122


City Bangalore Calcutta Chennai Delhi Mumbai Pune

CD100 SS Prices (in Rupees) Ex. Showroom On Road Price Price 38,375.91 42,530.54 39,003.26 41,800.26 39,932.00 42,950.00 38,507.68 40,664.68 39,709 42,797 37,722 41,295 CD100 Prices (in Rupees) Ex. Showroom On Road Price Price 36,896.88 40,915.80 37,494.76 40,199.76 38420.00 41,410.00 37,023.05 39,155.05 38,992 42,027 37,231 40,762

City Bangalore Calcutta Chennai Delhi Mumbai Pune

City Bangalore Calcutta Chennai Delhi Mumbai Pune

PASSION PLUS Prices (in Rupees) Ex. Showroom On Road Price Price 41,898 46,403 42,574 45,549 42,732 46,857 41,885 44,127 43,816 47,920 42,232 46,198


City Bangalore Calcutta Chennai Delhi Mumbai Pune

PASSION PLUS DISC Prices (in Rupees) Ex. Showroom On Road Price Price 44,494 49,237 45,212 48,150 45,365 49,592 44,482 46,950 46,541 50,882 44,853 49,048

City Bangalore Calcutta Chennai Delhi Mumbai Pune

SPLENDOR+ DRUM Prices (in Rupees) Ex. Showroom On Road Price Price 40,447 44,818 41,111 46,500 41,223 45,321 40,579 42,788 42,351 46,328 40,822 44,666 SPLENDOR+ DISC Prices (in Rupees) Ex. Showroom On Road Price Price 43,043 47,653 43,749 49,200 43,856 48,001 43,175 45,311 45,076 49,290 43,444 47,516

City Bangalore Calcutta Chennai Delhi Mumbai Pune


City Bangalore Calcutta Chennai Delhi Mumbai Pune

CD DAWN Prices* (in Rupees) Ex. Showroom On Road Price Price 31,379.00 31,899.00 30,899.00 31,899.00 32,065.00 30,899.00 35,213.00 33,999.00 34,800.00 33,944.00 35,147.00 33,880.00

*This price includes the Celebration discount of Rs. 1001/-



The place element of the marketing mix concerns decisions regarding how the company or firm makes their products available to the consumers. It involves the various activities a company undertakes to make the product accessible and available to the target customers. This is the distribution element of the marketing mix. It also understands the various types of retailers, wholesalers, and physical distribution. Place in broader term includes Channels, Coverage, Assortments, Locations, Inventory, Transport, etc. There are three broad decision areas in distribution. These are channel strategy, channel management and physical distribution.


Channel Strategy

A channel is a pipeline through which the product is passed to get from the manufacturer to the end-user. Length of a channel The number of intermediary channels is used to designate the length of a channel. A zero level channel (also called direct-marketing channel). It consists of a manufacturer selling directly to the final customer. Manufacturer Consumer

A one level channel contains one selling intermediary such as a retailer. Manufacturer Agent/dealer/retailer Consumer

A Two level channel contains two intermediaries Manufacturer Wholesaler /dealer/Retailer Consumer

A Three level channel contains three intermediaries. Manufacturer Distribution Wholesaler

Retailer Consumer


Channel management

Channel management ensures that the firm manages there intermediaries so that they can get the best out of them. It is about the relationship that the firm has with their intermediaries, the margins they give them, the training and support they provided and the activities and service that the firm requires from them in exchange.

Physical Distribution

Physical distribution concerns the logistics of getting your product from the factory floor to the end user. It is about the issues such as the reordering of stock by intermediaries; whether to use trucks or train to transport the products; whether it is better to have one factory and several dispersed warehouses factories from which the firm transports the finished goods direct to wholesalers and retailers.



Hero Honda continues to have the same policy of directly approaching the dealers. However the company has made some changes in the dealership requirements. The company has now divided its into three categories, A, B and C depending upon the status of the town. Hero Honda has made some regulations and its dealers are bound to fulfill specific requirements for their showroom and workshops in terms of area. The company has also started focusing on the rural marketing such as Agartala (Tripura), Tinsukia (Assam) and Bhagalpur (Bihar). The company has also increased the number of dealers from 350to 400.

Distribution Channels

Hero Honda has very strong Distribution channel in India. Hero Honda distributes its products through Regional officer, Authorized dealers Etc.



Criteria for selection of distributions; 1. Financial position to the distributors 2. Goodwill 3. Situation of show room 4. Past record 5. Experience



Promotion concerns the message the firm sends out to potential consumers. It provides information and persuades people. It creates awareness, stimulates demand, and differentiates the product and influences public behaviour. Promotion wont make a bad product that no one wants a success; although the absence of promotion might be that a good product is not successful. Promotion includes all the activities or tools a company uses to communicate or promote its product in the market.


1) PERSONAL SELLING: It involves personal confrontation either by phone or face. It is an expensive and time-consuming tool of promoting the product.



It is defined as a paid non-personal communication with a target (usually mass) market. It is cost effective and can reach a large number of people. It can also be used for long term or short term objectives. There are various forms or mediums through which firms can advertise. (A)Broadcast Media Television Radio Cinema (B)Print Media Newspapers Magazines Leaflets (C)Outdoor Media Posters and Billboards



A public relation is an umbrella term and refers to the totality of the organizations behavior with respect to the society in which it operates. They maybe regarded as good or bad and is reflected in the companys reputation and image.

4) SPONSORSHIP: Sponsorship can be seen as a part of public relations and it is certainly the case that some sponsorship goes on to generate positive publicity for the organization.

5) SALES PROMOTION: It is direct inducement, which offers an extra value of incentive for the product. It is directly related to sales and induces an immediate response from the consumers. Trade promotion: These campaigns are run for the trade

(intermediaries who stock or push the product) to encourage them or stock or push the product. Consumers sales promotion: These are sales promotions aimed at the end customer.


6) DIRECT MARKETING: It is an interactive system of marketing, which uses one or more advertising media to affect a measurable response at any locations.

Direct marketing includes:

Direct mail Telemarketing Door to door selling Direct response advertising: Phone now or fill in the coupon ads. Home shopping of various types. Mail order.

Factors that guide a marketers decision in selecting a promotion mix:

(A) Nature of product (B) Overall marketing strategy (C) Buyer readiness stage (D) Product life cycle stage.






STRENGTHS Hero Honda introduced first-stroke bike in the India market Hero Honda gives 80 km/litre. Huge sale network (3500 Dealers) Better sale service

WEAKNESSES Suppose to be very sophisticated Not fit for rural India.

OPPORTUNITIES Hero Honda is the first manufacture to launch eco-friendly bikes with 4-stroke engines. They have attained a strong good will and popularity in the industry and the consumers. Therefore, it has huge potential to retain existing consumers and develop new market share.


As Government policies are amended against pollution in metro cities, Hero Honda being 4-stroke bike manufacture have great opportunities to explore its new innovations and technologies.

THREATS Main Threats for Hero Honda are their competitors like: Bajaj Auto TVS-Suzuki Escorts Yamaha



1. Incase of Primary data, sometimes it was difficult to contact or meet the Professional, due to their busy work schedule. 2. Sometimes, Professionals are unable to furnish some of the information due to confidentiality of the same. 3. Personally contacting the managers of the company involved time and cost. 4. It was difficult to find information that exactly fitted the needs of the project at hand in case of secondary data or information is concerned. 5. Secondary data when collected was invaluable but due to passage of time and with many dynamic changes taking place in the markets, the information losses its value in the current scenario. 6. Being a very sensitive issue, company official were reluctant to give exact pricing policies followed by them. 7. This project report gives a birds view of the marketing strategies adopted by the company. This project doesnt give detailed and deep insight of the marketing strategies. This project report gives only an idea. Company officials are secretive and hesitant about divulging any information whatsoever amount spent on Advertisement and aspects related to Research and Development.



The study, which I conducted on the In-depth Analysis of Hero Honda Motors Ltd. in the area of Marketing & Human Resource Management has been a very gratifying experience at the outset, the objectives were to cover the whole marketing strategies and Human Resource policies adopted by HHML. The entire report has been effort to do just that. Through out the study I found Hero Honda bikes are very new & use modern technology in their bikes. As a result they give better performance then other bikes in the market & required less

maintenance. Hero Honda also provides good after sale service to the customer. Hero Honda has managed to put in spectacular performance going from strength to strength despite increase in competition, the


companys sales have witnessed an up trend, registering an average growth of 42% in the three years under review. Hero Honda has managed to achieve this because of its strong brand image and proven product quality underpinned the performance growth in recent years. Apart from the strong brand Splendor the companys presence across the spectrum of the motorcycle market helped it exploit the growing demand for 4-stroke motorcycles.

At the lower, end, the company has CD 100 and CD100 SS and at the middle level splendor, passion & joys. The CBZ the CBZ range is targeted, at the premium segment. Thus one may say that the marketing strategies adopted by Hero Honda have really paid-off, as the company has constantly managed to increase its market share and also increase its sales. Which is really amazing for a company, which has been a market leader to maintain its strong position in the wake of growing competition from its competitors who have been trying to grab a strong share in the market by launching latest technology products. Last three data show that demand of Hero Honda bikes increase & market trends indicated that in future more demand for Hero bikes expected.


Hero Honda has been very understanding to its employees. It treats all its employees as the biggest asset of the company. Its innovative H.R. policies are made to ensure that the best of talent, which the company employs, receives the best of talent, which the company employs, receives the best of remuneration. Also the non-monetary incentives given to the employees are such as to maintain the motivation to a time high.



No matter how much on organization progresses it always lack something. These are shortcoming of every company. After completing my report on new Hero Honda motors Ltd., I have some suggestions to offer. The suggestions can be proved useful for the company as they have feasibility and viability. The Recommendations are: Hero Honda Motors only manufacture a wide range of 4-stroke bike. But in my opinion 2 stroke bikes have a better pick-up. So in order to letter to the need of a large segment of customers, who want a better pick-up bike, Hero Honda should go into the manufacture of 2 stroke bikes. The company has always targeted urban sector of Indian

population. But in the rural sector Escorts, Rajdoot enjoy a great market share. So, therefore Hero Honda should target this upcoming market. Hero Honda should keep a strict watch on competitions. For instance Yamaha has introduced a 4-stroke bike YBX whose features are almost same as Splendors. The company should work more on public relation.

Marketing Management Kotler Philip Marketing Ghandhi J. C. Principles of Marketing Palmer Adrian Marketing Management Ramaswamy V. S.

News Papers The Economic Times. The Times Of India.

Magazines Business World June 2006 India Today.- June 2006 Specific Sites o o o o Searching Sites o o o o

Web Sites






1. What are the parameters that you would consider before buying a bike? 1) Cost.... 2) Company.... 3) Mileage.... 4) Looks.... 5) Service....

2. Do you have bike? 1.Yes 2.No.

3. Which company do you prefer? 1.Hero Honda 2.Bajaj 3.Tvs 4.Sujuki


4. In Hero Honda which bike do you like? 1.Hero Honda CD 100 3.Honda Splendor 5.Honda Passion 2.Honda Sleek 4.Honda CBZ 6.Honad Karizma

5. Do you satisfy with the service of Hero Honda? 1.Yes 2.No..

6. What do you think of Hero Honda as a company? a) Trustworthy brand b) Not so familiar with the company c) Did not have good dealing with Hero Honda