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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

UNIVERSITY OF MUMBAI LALA LAJAPAT RAI COLLEGE OF COMMERCE AND ECONOMICS MAHALAXMI, MUMBAI-34

TOPIC A STUDY OF CUSTOMER SATISFACTION TOWARDS HERO HONDA, MUMBAI, MAHARASHTRA

SUBMITTED BY: Abhishek Solanki Anukul Seth Jay Shah Kavish Rathor Rohit Sharma Sachin Balasubramaniam Yashna Kapasi

S.Y.BMS- SEMESTER IV PROJECT GUIDE: PROF. VINAY PANDIT YEAR OF SUBMISSION 2011-12

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

CERTIFICATE
We, Mr.Vinay Pandit hereby certify that Abhishek Solanki, Anukul Seth, Jay Shah, Kavish Rathor, Rohit Sharma, Sachin Balasubramaniam And Yashna Kapasi of Lala Lajpat Rai College of Commerce and Economics of S.Y.BMS, semester IV has completed University project on SALE OF SECOND HAND CARS IN SOUTH MUMBAI. This information submitted is true and original to the best of our knowledge.

Sign of Project Guide

Sign of BMS Coordinator

External Examiner

I/C Principal

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

DECLARATION
We Abhishek Solanki, Anukul Seth, Jay Shah, Kavish Rathor, Rohit Sharma, Sachin Balasubramaniam And Yashna Kapasi, students of Lala Lajpat Rai College studying Bachelor of Management Studies in my second year, declare that we have done this Research Methodology project on A STUDY ON CUSTOMER SATISFACTION TOWARDS HERO HONDA MOTORCYCLES IN MUMBAI, MAHARASHTRA in the academic year 2012-13. We have done this project to the best of our ability and our knowledge under my Professor, Vinay Pandit.

_________________________ SYBMS, C Division.

Date: Place: Mumbai

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

ACKNOWLEDGEMENT
Our project titled A study on customer satisfaction towards Hero Honda motorcycles in Mumbai, Maharashtra would not have been completed without the help of a few individuals whom we would like to thank and acknowledge for their efforts in helping us complete this project. We would like to acknowledge our parents who have financially supported us during this project. With great pleasure we thank Mr.Vinay Pandit Professor of Lala Lajpat Rai College of commerce and economics for being and an inspiration in the completion of this project. We thank him for invaluable help provided during the completion of this project, we also thank him for providing us guidance and numerous suggestions throughout entire duration of the project we are thankful for invaluable help without it this project would not have materialized.

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

INDEX

Serial No. 1 Topic Executive Summary Chapter 1 Introduction of Research 2 3 4 5 6 7 8 9 10 11 Methodology General Introduction of the project Objective of the study Scope of the study Research Methodology Formation of research problem Hypothesis Data Collection Research Instrument Sampling Plan Research limitation 12 13 14 15 16 17 18 19 Chapter 2 Review of Literature Chapter 3 Chapter 4 Chapter 5 Chapter 6 Data and Interpretation Survey Conclusion Bibliography
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Page No. 6

Remarks

8 10 10 10 11 12 12 13 13 14 15 26 35 37 41 51

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Executive Summary

Customer satisfaction plays a crucial and critical role as it deals with customers and their demanding needs and wants, which an organization has to fulfill. Satisfaction of a customer is so basic that it cannot be considered as a separate function. It is the way a whole business sees from a point of view of its final results that is customers point of view. A customer has the right to choose from a large variety of offering. She/he is the main person, around which all the business revolves. In order to sell any product in a customer oriented market, a relationship with the customers must be built, and hence, studying about the customer behavior becomes very important to judge the level of satisfaction each customer has obtained. Quite often the difference between those that simply survive in business and those that thrive is keeping abreast of, and adjusting to, the ever-changing attitudes and expectations of the market place. One such change has been the significant change in attitudes of customers over the last ten years. Today, customers are becoming increasingly more demanding, less tolerant and very critical when not having their expectations met. Customers have lots of choice on where and who to deal with. As a result the power has now shifted to the customer. If they feel you cannot satisfy their expectations they will simply vote with their feet and deal with someone who will. Hence, we decided our research topic as Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra. This project is undertaken to know the customer behavior & satisfaction level for Hero Honda Motorcycle in Mumbai. The factors that affect the selling of a motorcycle is also 6

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra pointed at. Mumbai is a metropolitan city, and most of the population that purchases motorcycles is from the middle and the working class. Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth over the years. Now owing a bike has become a must for most Indians. Even if people own a car they prefer to have a bike as it is very economical, fuel-efficient and saves time. With the growth in the economy the demand for two wheelers is increasing over the years. It is one of the most dynamic industries today and with the increasing competition companies are bringing in new products with sophisticated technologies and innovative features to capture a major pie of the Indian market and its the consumer who is benefited from it. The motorcycle has now become one most popular mode of transportation among the Indian middle class families because of it is cost effective, economical and easy to navigate through the traffic. There were some limitations while doing the project. The data was collected by personal interviews of the respondents. Also, the main limitation we came across, was that we are doing this study post Hero Honda break up, and hence the survey, and outlets, research material was all in the past or changed into the new name, which is Hero Moto Corp. This study brings out the awareness about different customers and their various perceptions about the popular availability of Hero Honda services and quality. Inspite, of the break up, Hero Honda proved that it has established a strong name during the joint venture, and Hero Moto Corp is yet advertising about the change in name since people still refer it as Hero Honda.

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

1.1 General Introduction of the project


Previously, there were only a few two-wheeler models available in the company. But, now with the availability of reduced consumer loans and high disposable income the Indian two-wheeler industry has perceived an exceptional growth over the past few years thereby making India the second largest market for two wheelers in the world only after China and Japan in terms of the sales of two-wheelers. Moreover, the people have started preferring bikes instead of scooters and mopeds and today bikes form a major part of the Indian two wheelers. Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj, India. The motorcycle industry in India has witnessed a tremendous change in the 90s with the invention of 4-stroke engine, which makes the bikes more fuel-efficient. Further companies are trying to bring in more innovations to make the motorcycle ride more comfortable, safe and user friendly and economical. In a nutshell the followings factors can be distinguished for the growth of motorcycle industry in India: Easy accessibility to cheap consumer loans The increase in the average income of the family. The reduction in duties and taxes. Convenience with regards to commuting as compared to the public trans Continuous innovations in technology making the bikes economic and fuel-efficient. The first choice among youths and teenagers.

About Hero Honda

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Hero Honda Motors Limited is a two-wheeler manufacturer based in India. Hero Honda is a joint venture between the Hero Group of India and Honda of Japan. The company is the largest two-wheeler manufacturer in India. Company Profile:Hero is the brand name used by the Munjal brothers for their flagship company Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its stake in the venture to the Munjal family. During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception and they sold millions of bikes purely on the commitment of increased mileage. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpart Honda. Hero Honda has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero Honda has a large sales and service network with over 3,000 dealerships and service points across India. Hero Honda has a customer loyalty program since 2000, called the Hero Honda Passport Program. Company performance:During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12% over last year. In the same year, the company had a market share of 57% in the Indian market. Hero Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda Splendor became the world's largest-selling motorcycle for the years 2001-2003, selling more than one million units per year.

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide.

1.2 Objective of the Study


To know the market position of Hero Honda with comparison to Bajaj and TVS. To understand consumer behavior before and after the purchase and also if they are satisfied or not. To classify which types of customers visit Dealers with reference to gender and income To identify the factors that influence consumers decision.

1.3 Scope Of the Study


The main scope of the study is restricted to Mumbai. This study has been made to find the level of satisfaction the customer has regarding the service provider by Hero Honda motorcycle in Mumbai.

1.4 Research Methodology

The study of customer behavior before buying the product and level of satisfaction after buying the product is very important for every organization in order to know where they have to improve, as brand loyalty doesnt take place until and unless the customer is completely satisfied. Hence, in order for the organization, in this case, Hero Honda, to improve its customer satisfaction and increase the number of loyal customers, they will be aware about what they need to work on, and what their position is currently. Type of Research

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra The study undertaken is of Descriptive Research in nature. Research design A research design is the detailed blue print used to guide a research study towards its objectives. It helps to collect, measure and analyze the data. The present study seeks to find out the consumers attitude towards buying of bike. The study also aims at findings out the drawbacks of the marketing set up of Hero Honda. So this makes the study a descriptive one.

1.4.1 Formation of Research Problem


Main purpose of the study was to know the customer buying behavior and demand into the minds of customer of Mumbai towards Hero Honda, as Hero Honda has proved to be one of the most successful joint venture worldwide. The key customer retention in India is good customer service. It is vital to ensure that the customer loyalty programs are an integral part of any organization. Therefore, research is required to measure present consumer buying behavior at the purchase of Hero Honda motorcycle, so the research problem is to identify what are the criteria that prospective customer takes into consideration before buying the motorcycles. Also, after purchasing are customers being satisfied with the after sales service or not.

1.4.2 Hypothesis of the Study


The following hypotheses can be studiedNull Hypothesis: choosing a brand of two wheelers depends on gender Alternative Hypothesis: choosing a brand of two wheelers does not depend on gender

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Null Hypothesis: choosing a brand of two wheelers depends on income Alternative Hypothesis: choosing a brand of two wheelers does not depend on income

Null Hypothesis: Hero Honda has a better market position than TVS and Bajaj Alternative Hypothesis: Hero Honda does not have a better market position than TVS and Bajaj

Null Hypothesis: To show buyers are satisfied with their purchase Alternative Hypothesis: To show buyers are not satisfied with their purchase

Null Hypothesis: price influence consumers decision over other factors Alternative Hypothesis: price does not influence consumers decision over other factors

1.4.3 Data Collection


Primary source of data Secondary source of data

Primary Source of data includes the questionnaire filled by people of different age groups. Secondary source of data includes 1. Companys website

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra 2. Articles and reports written on consumer behavior and satisfaction towards Hero Honda. 3. Annual reports 4. Previously written reports

1.4.4 Research Instrument


In this study the research instrument is Questionnaire. It consists of set of question presented to respondents. The questionnaire is structured & combinations of various close and open ended questions. Close-ended questions already have the possible answers and the open-ended question allow the respondents to answer in their own words. The questionnaire also includes five point scale, liked scale and point rated questions, where the respondents have their own views which are also easy to analyze.

1.4.5 Sampling Plan


Sampling plan Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. Sampling Unit:- It means Who is to be surveyed. Here target population is decided and it is who are interested to purchase Bike and sampling frame is developed so that everyone in the target population has known chance of being sampled. So the survey is conducted particularly in Mumbai city. Sample size:- For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behavior of bike. The sample size is 100 respondents.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Sample Element:- The sample element of research is customer of Supreme Auto. Sample Extent:-The sample extent is limited to Mumbai city. Sample Duration:- The sample duration between June 2009 and July 2009 Sampling Procedure:- The sampling procedure followed is convenience.

1.4.6 Research Limitation


Research work was carried out in Mumbai, which is just one city of Maharashtra. The finding may not be applicable to the other parts of the country because of social and cultural differences. The sample was collected using connivance-sampling techniques. As such result may not give an exact representation of the population. The project was done, post Hero-Honda break up, and hence the project had to be based on past experiences, and on only Hero Moto Corp being the individual company. Major users of motorcycles are the working classes. Hence, at some point, questions had to be explained and were written by us due to the lack of language understanding. Since, only the Hero Honda and Hero users filled the questionnaire, the ratings could be biased with comparison to other company motorcycle users.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

2 Review Of Literature
Article 1 Source: http://www.business-standard.com/india/news/hero-honda-bajaj-lead-incustomer-satisfaction/28848/on HERO HONDA, BAJAJ LEAD IN CUSTOMER SATISFACTION

This article is about the total customer satisfaction study of motorcycles conducted by TNS Automotive in the year 2007, where Hero Honda, Bajaj Auto and Enfield motorcycles have toped the customer satisfaction ratings. The study was done on a large scale on many parameters such as sales satisfaction, motorcycle performance, product quality, after sales service, brand image of the company and cost of ownership. The leading motorcycle companies are striving to achieve the lowest cost of ownership that is being appreciated as the targets are mostly for the middle working class of the country. The brand loyalty and brand image is enjoyed by most of the customers. The standard motorcycles owners expect their styling, attention, commitment and knowledge of studying the bikes, equal to the higher value bikes, which the companies are trying to provide and have been successful. The north and parts of west of the country plan to go for a four-wheeler as their next vehicle as they think its an upgrade to their class.

Article 2 Source: http://www.thehindubusinessline.in/2005/06/24/stories/2005062401900200.htm BAJAJ, HERO HONDA, ENFIELD TOP CUSTOMER SATISFACTION: STUDY 15

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

This article tells us about the TNS Automotive study of Motorcycle Total Customer Satisfaction (MTCS) is the year 2005. The study mentions that Bajaj Auto, Hero Honda and Enfield are customer satisfaction toppers. The study shows a response of more than 7,000 new motorcycle buyers with respect to 40 models in the parameters of sales and after sales services, brand image, product and design quality, company and motorcycle performance and cost of ownership. There is not much improvement from the year 2004 towards high volume standard and executive segments. Hondas unicorn beats the Bajaj Pulsar as it is has been rated the best for product quality and cost of ownership. The Indian customers demand for more fuel-efficient vehicles which the companies are trying their best to meet the customers needs. Bajaj CT 100 gives one of the best average that is 70km per litre. But along with fuel-efficient, customer demands for performance, better sales service, etc. too. 14% of the current motorcycle owners want to take a higher step towards a car in the next three years, where as 28% of them would purchase an extra or replace the existing one in the near future.

Article 3 Source: http://www.financialexpress.com/news/hero-honda-tops-in-nfo-customersatisfaction-study/80514/ HERO HONDA TOPS IN NFO CUSTOMER SATISFACTION STUDY

This article is a study of Indian motorcycle customer satisfaction conducted by NFO Automotive in the year 2003, where Bajaj Pulsar and Enfields Bullet Electra ranked the highest among all others. The study was based on 5,400 motorcycle owners in their first three years of ownership towards 30 motorcycles based on the parameters of sales and after sales service satisfaction, product quality, performance and design, brand image and loyalty and cost of ownership. Hero Honda has been rated the highest for high volume standards and for having a collection of executive standard and premium segments of motorcycles.

Article 4 16

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Source: http://www.oppapers.com/essays/Hero-Honda/190632 HERO HONDA PROFILE

The objective of this study is to understand the customer preference with regard to specific brands of bikes (TVS, HONDA and BAJAJ) under 150cc category between the age group of 18-25 college going student on the basis of Price, Fuel efficiency, Brand name, Style and comfort. According to the survey done in 2010 2011 Hero Honda motorcycles where on the top followed by Bajaj, TVS, and Yamaha. Over 20 million hero Honda two wheelers are on Indian roads today. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle Splendor.

Article 5 Source: http://www.scribd.com/doc/50591164/hero -honda STUDY ON HERO HONDA

According to the recent results hero Honda has registered a sales increased by 24.5% over the past years. Hero Honda keeps on taking initiatives to maintain its leadership on service as well as to improve the level of customer satisfaction, in order to improve the customer service new steps taken were : service advisors at dealership , service plus scheme for customer.

Article 6 Source: http://articles.economictimes.indiatimes.com/2002-0417/news/27361532_1_hero-honda-hero-honda-honda-senior-vice-president HERO HONDA BIKES TO SELL AS HONDA IN VIETNAM

Japanese automaker Honda for the first time started outsourcing motorcycle from its joint venture hero that were sold under Honda brand name in Vietnam. it was confirmed by hero motor corp vice president Atul Sobti who was also the sales & marketing head that company has exported its 100cc street smart step thru motor-cycle to Honda. Thus the 17

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra joint venture became countrys largest two-wheeler manufacturing company in 2002.company sold 1.42 million units in 2001-2002 with a growth rate of 38.2 per cent in a year. Thus this might lead towards both India and china becoming the outsourcing hub worldwide for two wheeler production due to low cost of production n better quality

Article 7 Source: http://articles.economictimes.indiatimes.com/2006-0902/news/27424864_1_hero-honda-bike-market-executive-segment BAJAJ CLOSES ON HER HONDA

Bajaj and Hero Honda are the two rivals in the worlds second largest two wheeler markets. Recently it was observed that Bajaj auto has pulled closer to hero Honda in the number two wheelers sold every month that lead to the change in the leadership position in the market. Pune Bajaj sold 180570 in august 2009 with a growth rate of 21percent in a year, whereas hero Honda has reported 15percent drop in its sales to 208576 due to four days shut down n a strong competition from Bajaj Platina and discover .the plant was for four for maintenance work. The gap between both the giants had reduced to 10000units from 28000units. Bajaj shares rose 3.44% to Rs.2, 790.3 whereas Hero Honda shares inched up 0.7% to Rs.726.1. Hero Honda officials declined to comment on the sales figures.

Article 8 Source: http://articles.economictimes.indiatimes.com/2005-0605/news/27491879_1_scooter-market-director-pawan-kant-munjal-hero-honda HERO HONDA ON EXPANSION BINGE Munjals and Japan's Honda Motor Company have 26 per cent equity each in the joint venture motorcycle company, which would easily generate resources internally for the 18

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra production plans. So in order regain its 50percent market share it declared on June 2005 that it would invest upto Rs.600crore over the two years for new facilities & expansion.as per the expansion plan the two wheeler giant company would set up a new plant and enter the scooter market in a year all this was done to regain its market share and leadership position in the market

Article 9 Source: http://timesofindia.indiatimes.com/business/india-business/honda-declares-waron-ex/partner-Hero-targets-No-1-spot/articleshow/11381039.cms

HONDA DECLARES WAR ON EX-PARTNER HERO, TARGETS No. 1 SPOT

As everyone knows that Hero and Honda are no more together as a company. Honda is entering the Indian market as a sole company and introducing two-wheelers that can take over Heros prime 2 wheelers like the Passion and Splendor. Honda wishes to be the biggest manufacturer of 2 wheelers in India and wishes to increase its sales from India from 13% to 30%. Honda is investing 1800crores to open a new manufacturing plant that will increase their units produced to 4 million and 10 million by 2020. Hero is also holding tight on the competition and as it has the advantage of the base of suppliers in India it might get difficult for Honda to come up and the competition is going to be cut throat. The industry expects some tactical and strategic fireworks in the near future. "It will be like a Coke-Pepsi battle.

Article 10 Source: http://articles.economictimes.indiatimes.com/2010-0614/news/28414508_1_pankaj-munjal-hero-motors-hero-cycles.com HERO MOTORS KEEN TO ROLL OUT GLOBAL SUPERBIKES

Hero Motors is in talks to manufacture powerful sport bikes in the country on behalf of 19

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra global superbike makers including Harley Davidson. Some of the global superbike makers Harley Davidson, Ducati and BMW are looking to pierce the growing Indian premium bike market. Although the deal was settled recently, Hero Motors has been working over these transactions for the past few months. The settlement has given freedom to the company to enter into the bike manufacturing sector and form alliances with global majors besides Honda. Hero Motors has chosen upon diversification and expansion and is looking at inorganic growth for acquiring technology in transmission space as it is planning to achieve greater heights. Mr. Munjal said that they plan to invest between Rs.500 and Rs.700crore over the next three years as capital expenditure. Hero Cycles or the initial public offering route that the company may introduce for the investors will either fund the targeted expansion.

Article 11 Source: http://articles.economictimes.indiatimes.com/2012-0217/news/31071238_1_hero-honda-bajaj-auto-president-brijmohan-lall-munjal BAJAJ TAKES A DIG AT HEROS PASSION AND SPLENDOR IN LATEST ADVERTISMENT FOR DISCOVER 125 In the year 2001, the chairman of Hero Honda, Brijmohan Lal Munjal said that they have just overtaken Bajaj and not beaten them yet, but understated the fact that they sold more two-wheeler then Bajaj. Now in 2011, the recent advertisement of Bajaj Discover 125 criticizes The Heros Passion and Splendor, this shows the old rivalry between the two companies and as both are working enough to create aggressive and strong marketing strategies.

Article 12 Source: http://articles.economictimes.indiatimes.com/2012-0106/news/30597709_1_super-splendor-hero-honda-scooter-market

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra HONDA AIMS TO CHALLENGE MARKET LEADER HERO MOTO CORP WITH CHINA MADE MODELS

A Year after the two largest two-wheeler company Hero and Honda has parted both are trying their best to capture the market of India. Honda has already started thinking on how to be better then Hero group and hero group has also planned to get new bikes in the market at unbeatable prices. Hero Moto corp, the new avatar of Hero group, dominates the Indian two-wheeler market by accounting upto 46% of the Indian sales of two-wheeler with the help of their most selling bikes 100cc CD-Dawn, Splendor, Passion and 125cc Splendor.

Article 13 Source: http://articles.economictimes.indiatimes.com/2011-0902/news/30105999_1_managing-director-pankaj-munjal-hero-motors-hero-cycles.com HERO MOTORS EYES 5 PC OF GLOBALBICYCLE BIZ BY 2015

Hero Honda is planning to double their business by 2015. Hero Honda is targeting 5% of the total cycles market in the world by them. At present they are making 19000 cycles market in all over the world. This means 5.5 millions every year. They want to double their business with 5 % of global bicycle market. Mr. Pankaj Munjal said, by 2015, the cycle market is expected to be USD 77.7 billion. He added in the last three years they have invested 600crore in their business. Hero motors also announced association with F1 driver Narayan Karthikeyan and his formula one team. The company is sponsoring Karthikeyen and his team for the inaugural formula one grand prick held last year Commenting on the company's plans for promotion and marketing he said: "they will focus a lot on the on-ground activities and events to promote our association with Karthikeyan.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Article 14 Source: http://www.hicow.com/hero-honda/pune/bajaj-pulsar-2574722.html HERO HONDA KARIZMA TEST DRIVE AND REVIEW The Indo-Japanese Hero Honda satisfied the need for speed for adrenaline filled Indian youths. Hero Honda's Karizma launched in March 2003 broke the 200cc barrier in Indian two wheelers, introducing a 223cc engine giving 17bhp of power through a four-stroke single cylinder engine. It is a riding pleasure for all road racers at a competitive price of Rs84,000. Hero Honda Karizma got a Karizmatic upgrade called as Karizma R in 2008 and later as Karizma ZMR in 2009. Indian youngsters are getting ready for a new age of biking experience and Hero Honda Karizma Test Drive has given them a kick-start. With ever increasing demand of commuter bikes, performance bikes are very different.

Article 15 Source: http://www.business-standard.com/india/news/bharat-rescues-india-inc/386801/ BHARAT RESCUES INDIA INC. This article originally appeared in Indian Management magazine, April 2009 issue. In 2007, Hero Honda, the countrys largest two-wheeler company, set up its rural base. Five hundred rural sales representatives were asked to meet opinion leaders in villages like panchayat members, school headmasters, postmen and so on, and display the companys range of products in village fairs to generate sales. They also had to do a survey to find out the satisfaction and profile of their customers, as their mindset is completely different compared to urban customers. The strategy was a smart one and ready to be put to action. Rival Bajaj Auto was also catching up fast with Hero Honda and the market leader (Hero Honda) needed to think out of the box to maintain its position. The solution was to unleash this 500 sales force on rural customers under the Har gaon, har angan (every village, every courtyard) campaign. The results are right in front of our eyes. While Bajaj Auto, which had focused on the urban market, has seen

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra going downward in the past few months, Hero Honda has grown vertically high. It is now way ahead of its rival. In the last six months or so, companies have discovered the importance of the rural market as its potential hadnt been discovered before. With urban India in the grip of a slowdown, the rural market is helping industries like automobiles, cement, consumer electronics, textiles, telecommunications and fast-moving consumer goods grow. The global economic meltdown has had its effects on the manufacturing and service sectors of the economy, which in turn have slowed down the urban market. Article 16 Source: Hero Honda Annual Report Page 20 ACCELERATING AHEAD WITH CUSTOMER CENTRECITY Hero Honda has launched an extended warranty program called advantage for our customers, where customers can enjoy the benefits of extended warranty options. The maximum warranty is for five year or 7000kms whichever is earlier. This is transferrable, online all India warranty is unique, in that it has the largest parts coverage and the lowest pricing in the entire two-wheeler industry. The program is also tailored to ensure good customer retention for dealers, thus helping them improve their revenues from the sale of spares and service. 14% of hero Moto Corp sales came through referrals given by Good life members in 2010-2011. Good life loyalty program is the largest customer relationship program of its kind in India.

Article 17 Source: http://timesofindia.indiatimes.com/biz/india-business/Hero-Honda-plans-tomake-nano-of-bikes/articleshow/5418147.cms HERO HONDA PLANS TO MAKE NANO OF BIKES Pawan Munjal announced the launch of a new bike with a breakthrough price similar to the Tata Motors newly launched Nano. The basic idea is to provide a comfortable ride for the customer with looks dissimilar to a moped or scooters. 23

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra The target is to meet the growing needs of two wheelers in the country at cheap prices especially the rural areas. The company will begin its research on the bike from the absolute start. Heavy investment will be made in the R&D department.

Article 18 Source: http://www.indiantelevision.com/release/y2k6/jan/janrel29.htm In 2006 Hero Honda Motors Ltd. regained its world number 1 position in two-wheeler manufacturing. It was awarded the bike maker of the year, Glamour got the bike of the year, and Achiever got the bike of the year in the 150 cc category. It also won the NDTV viewers choice award. These awards prove the trust and faith of the people in the company. It also won the award for Total customer Satisfaction by CNBC TV-18. Since these awards of 2006 Hero Honda has maintained its no.1 position in world leader in two wheeler manufacturing.

Article 19 Source: http://www.livemint.com/2011/07/25191352/Hero-goes-global-to-unveil-ne.html HERO GOES GOLBAL: TO UNVEIL NEW BRAND IDENTITY IN LONDON To unveil its new brand name globally Hero Honda Motors Ltd. Had chosen the occasion of the third test match between India and England at the lords stadium in London. It was the first step taken by the company after its split from its Japanese partner Honda Motor Co. Ltd in December. After its global launch the company will also enter into markets of Latin America, Africa and West Asia with a new logo. After the split from its Japanese counter part the company gave the job to a London branding firm Wolff Olins and it would re launch its self with the name Hero Moto Corp Ltd.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Article 20 Source: http://articles.economictimes.indiatimes.com/2011-08-16/news/29892238_1_cddeluxe-hero-honda-100-cc-bikes.com

HONDA MOTOR BETS ON 100-CC BIKES FOR RURAL PUSH IN INDIA Japans Honda Motors, the worlds largest motor maker has thought of expanding its brand name in the rural India and so in introducing this new bike, Honda Motors 100cc bike. Since the separation of the Tokyo based firm from the long-term partners turned into competitors, Hero Moto Corp. Has appointed 5 management teams across India led by Japanese executives to create a new decentralized marketing structure for consistent sales, people from the industry told ET. The 100-cc bikes laid foundation for Hero Moto Corp, erstwhile Hero Honda, to emerge as world's largest two wheeler firms in terms of volumes. Last year, Honda sold its 26% stake in Hero Honda to India's Munjal family while the technology agreement between Hero and Honda permits the former to use the joint name in products till 2014. Honda is likely to bring in a new improved engine with fresh design cues to attract young and rural India. However, the company said it aims to emerge as a major player in India in the next few years as it comes up with strategies to consolidate. The company has also started decentralizing its marketing set-up in India, from its earlier Manesar-based central head office, and has placed five Japanese led-management teams in Lucknow, Bangalore, Manesar, Pune and Kolkata, said industry sources. Honda plans 25

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra to more than double its sales in India to 4 million units by 2013. Its Lucknow zonal head office will be headed by Takashi Senda, who will oversee the entire central India operations. South Indian functions will be led by Yousi San from Bangalore, while north India will be looked after by Katsuki from its primary factory in Manesar.

3. To understand consumer behavior before and after the purchase and also if they are satisfied or not and to study the factors that influence consumers decision

The main aim of marketing is meet and satisfy target customers need and wants buyer behavior refers to the peoples or organization that conducts activities and together make an impact of various influences on them towards making decisions on purchase of products and services in a market. The field of consumer behavior studies how individuals, groups and organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desires. Understanding consumer behavior and knowing customer is never simple. The wealth of products and services produced in a country make their economy strong. The behavior of human being during the purchase is being termed as Buyer Behavior. Buyer behavior is psychological, social and physical behaviors of potential customers as they become aware of evaluate, purchase, consume and tell others about products & services. Consumer behavior and customer satisfaction depend on a number of various factors. Each individual is different and the buying behavior of each individual is different. Consumers make many buying decisions every day. Research on consumer buying behavior and their satisfaction depends on great detail to answer questions about what

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra consumers buy, where they buy, how much they buy, when they buy, and why they buy. The answers to these questions are often locked deep within the consumer's head. Customer satisfaction is a measurement of customer attitudes about products, services and brands. While it's always been smart to keep customers happy, the term "customer satisfaction" became popularized in the 1980's. A satisfied customer often leads to him being more loyal to the company and in turn refers the company to others and increases its goodwill. Customer satisfaction is defined as a measure of how products and services supplied by a company meet or surpass customer expectation. The term customer loyalty is used to describe the behavior of repeat customers, as well as those that offer good ratings, reviews, or testimonials. Some customers do a particular company a great service by offering favorable word of mouth publicity regarding a product, telling friends and family, thus adding them to the number of loyal customers. Hence customer satisfaction can be defined as the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Characteristic of Buyer Behaviors


The main characteristics of the buyers behaviors are as follows(1) It consists of mental and physical activities that consumers undertake to get goods and services and obtain satisfaction from them. (2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra (3) Consumer behaviors are very complex and dynamic as they are constantly changing. Hence, the marketers need to adjust with this constant changing behavior. (4) The individuals specific behaviors in the market place is affected by internal factor, such as need, motives, perception, and attitudes, as well as by external of environmental influences such as the family social groups, culture, economics and business influences.

Various factors influencing consumer behavior:


a. Cultural b. Social c. Personal

a. Cultural Factors Cultural factors exert the broadest and deepest influence on consumer behavior. The marketer needs to understand the role played by the buyer's culture and social class. Culture

Culture is the most basic cause of a person's wants and behavior. Every group or society has a culture, and cultural influences on buying behavior may vary greatly from country to country. The values, which are inculcated in a person, depend on his culture that he has been brought up with. Social Class

Almost every society has some form of social class structure. Social Classes are society's relatively permanent and ordered divisions whose members share similar values, interests, and behaviors. Social class is not determined by a single factor, such as income, 28

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra but is measured as a combination of occupation, income, education, wealth, and other variables. b. Social Factors A consumer's behavior also is influenced by social factors, such as the consumer's small groups, family, and social roles and status. Groups

Many small groups influence a persons behavior. The importance of group influence varies across products and brands. It tends to be strongest when the product is visible to others whom the buyer respects. Family

Family members can strongly influence buyer behavior. The family is the most important consumer buying organization in society, and it has been researched extensively. Marketers are interested in the roles and influence of the husband, wife, and children on the purchase of different products and services. Roles and Status

A person belongs to many groups such as families, clubs, and organizations. The person's position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the persons around them c. Personal Factors A buyer's decisions also are influenced by personal characteristics such as the buyer's age, occupation, economic situation, lifestyle, and personality. Age

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra People change the goods and services they buy over their lifetimes. Tastes in food, clothes, furniture, and recreation are often age related. Age also influences the persons habits and features. Occupation

A person's occupation affects the goods and services bought. Different occupations require products for different uses. For example Dominoes uses two wheelers for delivery purposes where as a housewife uses a two-wheeler for simple traveling purposes. Economic Situation

A person's economic situation will affect product choice. The better his economic situation more expensive will be his product choice. The countries economic situation also influences product choice by the consumer. Lifestyle

People coming from the same subculture, social class, and occupation may have quite different lifestyles. It involves measuring consumers' major AIO dimensions activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products). Lifestyle captures something more than the person's social class or personality. It profiles a person's whole pattern of acting and interacting in the world.

Personality and Self-Concept

Each person's distinct personality influences his or her buying behavior. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one's own environment.

Customer buying Decision Process

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra There are five stages in consumer buying decision process1. Problem identification The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from a number of consumers, marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest. 2. Information Search The consumer tries to collect information regarding various products and services. The consumer learns about completing brands and their features. Information may be collected form personal commercial or public sources such as magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, trade fair etc. Marketers should find out the source of information and their relative degree of importance to the consumers. 3. Evaluation of alternative There is no single process used by all consumers in all buying situations. There are several such as firstly, the consumer is trying to satisfy their needs and secondly the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision. 4. Choice of purchasing decision Among the purchase of alternatives, the consumer makes the solution of buying or not buying. If the decision is to buy, the other additional decisions are: Which types of bike he must buy? From whom do you buy a bike? How the payment has to be made? Etc. The marketer up to this stage has tried every means to influence the purchase behavior, but the final choice is of the consumers. In the evaluation stage, the consumer forms preferences among the brands in the choice set. The consumer may also 31

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra form an intention to but the most preferred brand. 5. Post Purchase Behavior After purchasing the product, the consumer will experience the product in various ways. The Marketers job does not end here. When the product is bought, the marketer must monitor post-purchase satisfaction level, post-purchase action, post-purchase use and disposal in order for continuing dealing with same number of customers or more, and also in order to develop brand loyalty. Post Purchase Satisfaction is the customer satisfaction experienced by the closeness between the buyer and marketer and whether the expectations of the buyer or not. The larger the gap between expectation and performance, the greater the consumer is dissatisfied. Post Purchase Action is the Consumer satisfaction or dissatisfaction with the products influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and may return the product. Post-Purchase Use or Disposal is when the marketer should be monitoring new buyers uses and disposes of their products. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, its the marketers duty to inquire the method the purchaser disposed it in, since it may harm the environment.

There are four phases in customer satisfaction1. Pre-sales period 2. During sales period 3. After sales period 4. Product and service features

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

There have always been benefits for having satisfied customers surveys. Once these surveys are analyzed the results can be used for a long time even after the survey. Consumer satisfaction surveys can be used to:

Demonstrate commitment to listening to customers. Enhance profits. Gain feedback from customers about products, services, and/or support, outside of what customers provide the sales force.

Improve customer satisfaction. Improve quality of service. Increase market share. Increase repeat business. Learn where the company stands in comparison with competitors. Obtain information on product developments, priorities, and requirements. Obtain input on new products or services. Provide a way for unhappy customers to vent. Target resources on issues of concern to customers

A few ways to satisfy customers are:


1. Understand them: Find out what they expect and deliver on those expectations. Have a conversation with your customer about what's on his/her mind relative to doing business with you. 2. Widen your customer contact: Don't have just one employee contact the customer. Have several people who understand the importance of quality service and customer satisfaction reach out to them. This ensures you are fulfilling your customer's needs on a variety of levels. 3. Communicate: The only way to truly satisfy a customer is to constantly stay in touch. Use every available form of communication (email, Twitter, Facebook,

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Linked In, Google+, Skype, telephone). That way, you always know whether things are working or not. 4. Develop a plan for handling complaints: Customers who become dissatisfied must have a place to vent and be heard. Set up a system within your company to deal with complaints. It can be as simple as adding a box at the end of your email signature that allows customers to click on it and write whatever is on their mind.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

4. TO CLASSIFY WHICH CUSTOMERS VISIT DEALERS WITH REFERENCE TO GENDER AND INCOME

Hero Honda Bikes in India are in great demand because of the high level of quality and superior technical skills. Hero Honda has carved a niche in the competitive Indian market for churning out motorcycles with high fuel efficiency and low maintenance. Hero Honda Bikes are reputed for low maintenance and high fuel efficiency. Today, Hero Honda is taken to be the world's largest two-wheeler manufacturer based in India. Hero Honda markets two wheelers for the middle-class & upper class families too. Hero Honda bikes price range are attractive in comparison of other bike manufacturing company. Hero Honda bikes have been on Indian roads since 1984 when Hero Cycles Ltd. tied up with Hero Group of India and Honda of Japan to start a joint venture. Hero Honda's commitment is to customer - quality & excellence. Hero Honda's key strategy has been driven by innovation in every sphere of activity. Hero Honda Bikes are manufactured across three globally benchmarked manufacturing facilities. Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. Hero Honda manufactures bikes by taking the economic needs of the Indians into consideration. Hero Honda is a company that makes bike for the Indian people. Indian people want their bikes to be more fuel efficient, they wouldnt mind compromising on

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra the power or style. Hero Honda took Indian peoples wants into consideration and made two-wheelers, and now they lead the two-wheeler market because of their unbeatable prices. Hero Honda focuses on people with moderate income in the country, and makes bikes for those people. Hero Honda makes bikes taking the majority people's income into consideration, which is one of the strongest features of the company. Giving bikes at unbeatable and with a great mileage, which indirectly forces the buyer to get convinced to buy Hero Honda bikes. Hero Honda also has bikes which are more focused on power and style for the bike lovers, and the company uses the goodwill of the company to increase their sales in this segment also, and also shown in our survey majority of people go for Hero Honda for its mileage and the price, that makes them the two-wheeler market leader. According to our survey, most of the people using hero Honda bikes were falling under the income slab of (5,000 - 20,000per month) that is generally the scenario with all bike users in India. Unlike foreign countries, bikes in India are used strictly for commuting purpose and factors like speed, looks, status symbol and performance are secondary. The primary concern is mileage, price, and maintenance. The people having a greater income use either cars or other modes of transport as per their needs, convenience, income and mentality. Many of the people do not use bikes in general cause of the safety problem as its a higher risk due to full exposure of body parts while commuting, especially in a country like ours where people do not obey laws, rules and regulations and indecency is common. Hero Honda serves to all slabs of income with their respective range of motorcycles, serving the working class and make their day-to-day life easier. Hero Honda also takes gender into consideration while making two-wheeler as to which gender to focus more on. Two-wheelers are ridden more by males than females, especially in our country. Therefore comparatively, males are a bigger market for hero Honda (as well as other bike manufacturers). The design, strength, shape and size are all made according to a masculine individuals usage and needs. Hero Honda also entered the

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra scooter market by introducing the PLEASURE, mainly targeted for women across India, as its light, gear-free and easy to handle.

5. To study the market position of Hero Honda with respect to Bajaj and TVS
Bajaj Auto limited is one of the largest two-wheeler manufacturing companies in India apart from producing two wheelers they also manufacture three wheelers. The company had started way back in 1945. Initially it used to import the two wheelers from outside, but from 1959 it started manufacturing of two wheelers in the country. B a j a j A u t o a l s o h a s a t e c h n i c a l t i e up with Kawasaki heavy industries of Japan to produce the l a t e s t motorcycles in India that are of world-class quality. Baja auto limited believes in learning, innovation, perfection and the most important factor speed. Bajaj auto has products of every segment. Bajaj CT 100 Dlx offers a great value for money at the entry level where as B a j a j D i s c o v e r 1 2 5 o f f e r s t h e c o n s u m e r a g r e a t p e r f o r m a n c e . It is India's largest and the world's 4th largest two- and three-wheeler maker. In 1970, it rolled out its 100,000th vehicle. In 1977 it managed to produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at waluj in Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single financial year. In 1995, it rolled out its ten millionth vehicle and produced and sold 1 million vehicles in a year. Following where the releases made by Bajaj Auto 1971-threewheeler goods carrier , 1972- Bajaj Chetak , 1976- Bajaj super, 1977- Rear engine

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Auto rickshaw, 1990- Bajaj sunny, 1994- Bajaj classic, 1998- Kawasaki Bajaj calibre (India's first four-stroke scooter) 2001- eliminator, pulsar , 2003- Bajaj pulsar. 2004- Bajaj discover DTSI, 2005- Bajaj avenger. 2007- Bajaj pulsar 200. Some of the upcoming products by Bajaj are : Bajaj Krystal, Bajaj blade , and Bajaj sonic. Bajaj is the first Indian two wheeler automobile companies in the market. Bajaj is Indias 2nd motorcycle maker. Bajaj is ranked as 4th largest manufacturers. Bajaj Auto, has reported a 112% rise in motorcycle sales in January to 2.33 Lakh units, compared to 1.09 units a year ago. Total sales of two and three wheelers doubled to 2.7 lakh units, while exports jumped by 33% to 71,695 units. Bajaj Auto managing director, Rajiv Bajaj said Pulsar and Discover bikes accounted for around 70% of the sales volumes. Before the launch of Pulsar, Indian bike market was divided broadly into Economy, Executive and Premium Bikes. In 1999 Hero Honda created a new segment of 150 cc performance segments with its CBZ. But Pulsar came and gave a new life into the Performance segment. Although not a pioneer, Pulsar made the performance segment one of the fastest growing segments in the two-wheeler market. Sales of the Pulsar at 71,970 units last month was at an all time high. Bajaj Auto, which launched the Pulsar 135 recently, , sold around 28,000 units of the new model . Because of the volumes, Bajaj Autos market share rose to 32% from around 21% a year ago. Total vehicle sales of the company stood at 3,52,769 units in September, compared to 2,80,916 units in the same period a year ago, a growth of 25.58 percent, the company had said. Bajaj is also is high in the sports segment with its Pulsar brand which has reached to 80,000 units a month 26 per cent rise in total sales of its two and three wheelers selling 352,769 units during September as compared to the same month a year ago. Sales of motorcycle grew 26 percent (including exports) during the reporting month to 314,515units as against 249,133 units. The biggest Competitors to Bajaj are: HERO HONDA, TVS SUZUKI, and YAMAHA.

After lying low for over a period of time, TVS Motor Company, the third largest twowheeler manufacturer in India, is confident of regaining its lost ground through a slew of measures and products. The company is targeting a market share of 18% in the current fiscal as against 15-16% last year, said Venu Srinivasan, chairman and managing director, TVS Motor.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra Addressing a select press briefing to announce the companys Q1 results, Srinivasan said, Despite an overall recession, increasing input costs, lack of financing and other bottlenecks, the company hopes to grow in the coming quarters and expects to end the fiscal with a market share of 18%. We believe the worst phase is over for us, he added. Responding to queries, he said, We see that the entry level motorcycles (100cc and 110cc) continue to dominate the market and will grow significantly over the years. TVS will continue to focus on this segment with new products. Currently, this segment contributes over 70% to the overall sales, he added. He said, The industry will witness some turbulence in the quarters to come due to expected shortfall in the monsoon across the country, an expected steel price hike, overall recession and a possible interest rate hike. But the company has geared up to tackle all these problems in cooperation with dealers and suppliers/vendors. Ultimately, we expect to have a positive cash flow in our hands in the current fiscal, he added. He said that 50% of sales come from small and medium towns and it is expected to grow significantly. In order to spruce up our sales and to tap the untapped potential in these areas and other places, the company is looking at something on the finance side. We want to do things in a more organized manner, Srinivasan said. The company is working on the modalities and hopes to announce them in this quarter. However, he declined to give other details. Following an encouraging response to its recently launched Flame, the company is planning to increase the monthly production to 20,000 by September as against 12,000 now. It has sold over 40,000 Flames since its launch in April, he added. Similarly, the company will spruce up production of Apache, (electric Scooters) Bajaj & Hero Honda are the two rivals in the worlds second largest two wheeler market. Recently it was observed that Bajaj auto has pulled closer to hero Honda in the number two wheelers sold every month that lead to the change in the leadership position in the market. Pune Bajaj sold 180570 in august 2009 with a growth rate of 21percent in a year, whereas hero Honda has reported 15percent drop in its sales to 208576 due to four days shut down n a strong competition from Bajaj Platina n discover .the plant was for four for 39

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra maintenance work. The gap between both the giants had reduced to 10000units from 28000units. Bajaj shares rose 3.44% to Rs2,790.3 whereas Hero Honda shares inched up 0.7% to Rs726.1. Hero Honda officials declined to comment on the sales Figures. However Hero Honda is still the leader with 49 per cent share of all sales. But the gap between Bajaj and TVS has come down 149,000 units for 20010-11, compared with a gap of 527,000 units only a year ago. When, 2008-09 ended Bajaj had 17 per cent market share, compared with 15 per cent for TVS. In 2009-10, Bajaj had 23 per cent, while TVS had 16 per cent of the market share. Both have lost to rivals like Hero Honda, but TVS has clearly lost much more than Bajaj. TVS has not seen sales fall, but Bajaj's sales fell much more sharply in 2008-09, reducing the gap between the two. Bajaj's two-wheeler sales slipped to 1.28 million in 2008-09, from 1.67 million a year earlier, a drop of more than 23 per cent. TVS Motors' sales also fell in the same period, but by just 1.36 per cent. It sold 1.13 million (from 1.15 million earlier) two-wheelers in 2008-09, according to data from the Society of Indian Automobile Manufacturers. The competition is expected to intensify this year with both Bajaj Auto and TVS Motors planning to launch a slew of products, which include new motorcycles and scooters as well as updated models. TVS Motors will look to add more products based on completely new platforms, while Bajaj Auto will focus on upgrading its existing bikes through upgrades of engine technology. S Sridhar, CEO of Bajaj Auto, said: "We will launch five-six new products in the next few months that will consolidate our product line-up. New products by competitors had impacted our sales, which had gone down to the 50,000 level in December, but customers are flocking to the Bajaj brand once again." The company is focusing on the launch of updated versions of all Pulsar models like 150, 180, 200 and 220, in addition to launching a completely new motorcycle before June. TVS Motors is working on the launch of three new products, two motorcycles and one a scooter, before the end of the year. Currently, the company sells four main products in the domestic market, as opposed to Bajaj's 11 products. While Bajaj's market share went up from 25 per cent to 34 per cent between April and June, Hero Honda's share fell from 56 per cent to 47 per cent during this period. Others like TVS [Motors and Honda Motorcycle & Scooters have retained their share. Discover was a bike first launched in 2004 and extended to the 100cc segment last year. Bajaj claims the Discover with sales of 114,000 bikes in June has emerged as the 40

A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra second-largest selling brand in motorcycles, overtaking Hero Honda's Passion 106,000 units/month but trailing its market leader, Splendor 160,000 a month. According to latest SIAM data, sales volumes of over 125 cc bikes grew 35% in Apr-Dec (2011), while for up to 125 cc, volumes were up 20%. Bajaj Auto, the leader in premium bikes and the first to tread on the turf with the rollout of Pulsar in 2001, enjoys over 70% share. Hero Honda, which has five products in the segment- Karizma, Glamour, Hunk, Achiever, CBZ - is currently far behind with a 13% market share.

6. DATA AND INTERPRETATION


The following will be graphs that are evaluated from the survey done and the interpretation of each graph. The survey has taken place in the city of Mumbai, Maharashtra among 100 people who own Hero Honda, or Hero motorcycles. Majority of the motorcycle owners were males. 13 out of 100 were females, riding a scooter named Pleasure, by Hero Honda.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Which medium did you refer for purchasing the bike?


Other Friends Magazines Television Advertisments Newspaper 0 10 20 30 40 Which medium did you reefer for purchasing the bike?

The above graph shows that majority of the people that is 35% chose to ask suggestions from their friends or pick the same motorcycle as theirs. This shows that there is a sense of following the herd mentality among people. 23% of them use television advertisements as their source of acquiring knowledge about the motorcycle they want to buy. 13% and 18% refer to magazines and newspapers advertisements or articles respectively. And 11% of them use other sources as their medium to refer while purchasing their motorcycles.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Does Advertisment influence in the decision of chosing a bike?

Yes No

The above graph tells us that 68% of the customers are influenced by advertisements and 32% are influenced by other factors but advertisements.

Customer Satisfaction with Hero Hoda motorcycles

YES NO

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra The above graph shows us that 81% of the Hero Honda or Hero motorcycle users are satisfied with the performance the bike/scooter gives them. And 19% of them disagree as they have higher expectations and they are not satisfied with the performance of their vehicle.

Which factors influence the decision the most for chosing a bike?

Price Mileage Quality Resale Value Status Symbol Other

The above graph shows us the factors that influence majority of the customers to buy the motorcycle. The mileage the bike gives influences 52% customers. The quality and the price of the motorcycle influence 28% and 27% of the customers. Hence, Mileage, Quality and Price become major factors for the customer attraction towards the company. Status Symbol influences 16% and Resale Value influences 9% of the customers. 4% of the customers are influenced by other factors of the motorcycle or the company.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Who is the decision maker /persuader for chosing the bike?


Other

Friend

Father

Who is the decision maker /persuader for chosing the bike?

Self 0 20 40 60

Since, majority of the motorcycle users are from the working class, and self-employed, 58% of them are their own decision makers of the bikes. 33% of them are students and may, may not work; hence, fathers become their decision makers. Friends persuade 11% of the customers. And 3% rely on others for the decision making of purchasing the motorcycle.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra


90 80 70 60 50 40 30 20 10 0 Hero Honda Bajaj Auto TVS

The above graph gives a comparison of three leading two-wheeler companies in India. Majority of the people think Hero Honda gives the best mileage compared to Bajaj Auto and TVS. The price of Hero Honda and Bajaj Auto are almost at the same edge that is accepted by most of the customers. Many customers feel that Bajaj motorcycles give a better pick-up than Hero Honda motorcycles. Maintenance of Hero Honda motorcycles is again cheaper and well accepted by customers compared to Bajaj and TVS. The style and looks of Bajaj motorcycles are better than TVS, but Hero Honda leads Bajaj by more than 20% there too. The brand image of Hero Honda is one of the most powerful images as it has been one of the most successful joint ventures worldwide. Hero Honda still manages to have a tough competition with Bajaj Auto on other factors.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Rating of Hero Honda motorcycles


45 N O 40 . 35 30 O F 25 20 P E 15 O 10 P L 5 E 0 1* 2* 3* 4* R A T I N G S 5* price mileage style easy riding brand reputation colour availability

Hero Honda and Hero customers were asked to rate few attributes of the motorcycles from 1 to 5 where 1 is the lowest and 5 is the highest. Brand reputation has been marked at higher points, undoubtedly. Where as, major drawback of Hero Honda motorcycles is that the color availability they give are very few, which disappoint most of the customers. Also, the style could need some improvements in most of their bikes. Easy riding and mileage is well acknowledged by most of the customers.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Poor

Average Services Good After sales response Knowledge of sales person Very Good Availability

Excellent 0 10 20 30 40 50

This particular graph shows us the liker scale of Hero Honda showrooms and the services they provide. Knowledge of the sales person has been rated Very Good by majority of the customers. A lot of customers have complaints about the after sales service Hero Honda provides, and that the availability of bikes, or the color of bikes, or even scooters for females are not been looked upon. The customers expect better after sales response and services, and more availability of colors. There is only one two-wheeler manufactured for females that is pleasure. Hence, they dont have any options among Hero Motorcycles. Hence, Hero Honda should look into that and improve their services towards their customers.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra


40 35 30 25 20 15 10 5 0 Festical Offer Exchange Offer Special Gift Cash Discount Excellent Very Good Good Average Poor

Many customers are attracted to the offers given to them. Since, India has a large number of working class population, they need discounts and offers as a reason for them to purchase their motorcycle. Festival offers have been rated the highest among all the offers, since Hero Honda provides huge discounts and sales during festivals like Diwali, where for Indian people, its the biggest occasion to buy something new, as it is considered lucky. Other offers such as Exchange offer and cash discounts are also well accepted by customers. Special gift offers should increase more, in order to attract more and more customers. Hero Honda should continue these offers, as it creates a good image among customers where they get good quality at a reasonable price.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Are you aware about the Hero Honda Passport scheme?

Yes No

This graph is about the Hero Honda Passport Scheme where majority of Hero Honda users have been benefited by it. And billions of people from all over the country have obtained brand loyalty for Hero Honda. 60% of the customers are aware of it, and 40% have heard of it. Hence, Hero should publicize the Hero Honda passport scheme more, and make more and more people aware of it to achieve more brand loyalty and create a even better brand image.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

What do you think about the Hero Honda passport scheme?

Excellent Very Good Good Poor Useless

Out of the 60% people, who are aware about the Hero Honda Passport scheme, most of them find it very good and helpful, and very few people think it is useless as it is not been advertised a lot. Hence, Hero Honda should advertise more about the passport scheme, and gain more brand loyalty and get more people aware of it. Even the Hero Honda users, should be made aware of it.

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra We, the students of Lala Lajpat Rai College, of second year of Bachelor in Management Studies, are doing a survey on the customer satisfaction of Hero Honda motor bikes in Mumbai, and request you to fill the following up. We promise to keep this information strictly confidential, and keep it only for the educational purpose.

Personal Information

Name- _____________________________________________

Age: 18-20

2 1-25

26-30

Above 30

Gender: Male

Female

Monthly Income: Student Rs10000-15000 Rs20000 and above

Rs5000 Rs15000-20000

Rs5000-10000

Survey Questions

1. Which product line of Hero Honda are you using?

_________________________________________________

2. For what purpose do you use the bike? Personal Work Other

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

3. For how long do you own the bike? 0-1year 1-2years 2-3years

More than 3years

4. Which medium did you refer for purchasing the bike? Newspaper Magazines Television Advertisements Friends/Relatives Other

5. Are you satisfied with the performance of the bike you are currently having? Yes No

6. Does advertisement influence your decision in choosing the bike? Yes No

7. Which factors influence your decision the most? Price Resale Value Mileage Quality Status Symbol Other

8. Who is the decision maker/persuader for purchasing the bike? Self Father Friend Other

9. How do you purchase the bike?

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra By Cash By Loan

10. Tick your favourite factor of the following companies-

HERO HONDA Mileage Price Pick-up Maintenance Look/shape Brand Image

BAJAJ

TVS

11. Tick the following ratings for Hero Honda motorcycles (5 being the highest; 1 being the lowest) 5 Price Mileage Style Easy Riding Brand Reputation Colour Availability 4 3 2 1

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

12. Tick for the following attributes for the showroom of Hero Honda. Excellent Very Good Availability Knowledge of Sales person After Sales responses Services Good Average Poor

13. Tick the ratings for the following offers that attract you the most from Hero Honda Excellent Festival offer Exchange offer Special gift Cash Discount Very Good Good Average Poor

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

14. Did you own a two-wheeler before this? Yes No

15. If Yes, which one?

___________________________________________

16. What is the reason you changed?

17. Are you aware about the Hero Honda passport Scheme? Yes No

18. If yes, what do you think about the passport scheme? Excellent Useless Very Good Good Poor

19. Any suggestions for the Hero Honda Company for improvement?

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A Study on customer satisfaction towards Hero Honda Motorcycle in Mumbai, Maharashtra

Signature__________________

Date____________________

Thank you for your time you put in to fill the survey.

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