ACKNOWLEDGEMENT

I hereby acknowledge that I have completed this project on Hero motocorp to know can advertising adds helpful in making brand image of hero after separating from Japan based company Honda, under the guidance of Prof. Sanjay kehar. I extend my thanks towards him for giving me full co-operation and suggestion in understanding the project as well as helping me to solve the difficulties during the internship. And I would like to thank to Mr.Sanjay Kehar who actually gave me opportunity to work on this project and helped me in understanding the relevance of my project.

EXCUTIVE SUMMARY

Marketing should not be looked upon in a vacuum or in isolation. It is an essence taking a view of the whole business organization and its ultimate objective concern for marketing must penetrate all areas of the enterprise. Market survey in todays competitive world is a must for every organization.

This project is a study of market potential of Hero Honda. The rationale behind this particular study is to find out the present market scenario of various brands & to find out the corporate need and perception. It was a pleasurable experience to conduct a research on behalf of Hero Honda pertaining to the study of the Automobile Sector.

To carry out this research a sample study was pursued where the target was made to the people of Delhi region. Various statistical and analytical tools and techniques are applied to ascertain and depict the present scenario.

Conclusion and there by recommendation has been arrived at by proper and justified interpretation of the result derived from the above said analytical tools and techniques.

We are going to discuss whether advertisement add can help to build brands with special reference to hero motocorp.

TABLE OF CONTENTS
SERIAL NO CONTENT PAGE NO.

1. 2.

EXECUTIVE SUMMARY INTRODUCTION

a) b) c) d)

1. Which influence you more in buying decision? Advertising Product quality Price Brand image

2. Do you think good advertising strategy is important for the success of any product? Yes No 3. Do you think using big celebrities like SRK, Dhoni etc in advertising is important to attract the audience? Yes No 4. For a brand like Hero Motor Corp., Do you think BTL advertising strategy is more important than ATL advertising to increase its presence among customers? Yes No 5. How will you rate recent advertising strategy of Hero Motor Corp.? Excellent Good Average Poor 6. Do you think after splitting with Honda, Hero Motor Corp. has successfully managed its advertising campaign that helps Hero Motor Corp. in successful positioning its brand image in the mind of Indian customers? Yes No

7. Do you think more crowds on advertising space, somewhere losing the main purpose of advertising and also it is losing the relevancy of advertising? Yes

No

8. Most of the company nowadays using semi naked women in advertising. Do you think it distract the main purposes of advertising? Yes No 9. Do you think companies must have to consider all the ethical issues while creating advertising program? Yes No

10. As the youth today is spending more and more time on Internet and the target audience of Auto Mobile industry is more of youth, Do you think it is important to have advertising on online space? Yes No

BACKGRAUND OF HERO HONDA

Hero Honda has a reputation of being the most fuel-efficient and the largest selling Indian motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich background of producing high value products at a reasonable price led the world's largest manufacturer of motorcycles to collaborate with the world's largest bicycle manufacturer. It was this affinity in working cultures of Honda Motor Company of Japan and the Hero Group that resulted in the setting up of Hero Honda Motors Ltd. A relationship so harmonious that Hero Honda has managed to achieve indigenisation of over 95 percent, a Honda record worldwide. Tactical promotions and excellent marketing helped Hero Honda establish itself as an intelligent purchase. Its unique features like fuel conservation, safety riding courses and mobile workshops helped the group reach in the interiors of the country. Finance services helped facilitate purchase, as did an efficient dealer network across the country. Well-entrenched in the domestic market, Hero Honda Motors Ltd. turned its attention overseas, and exports have been steadily on the rise. Over the years, the Company has received its share of accolades, including the National Productivity Council's Award ( 1990-91), and the Economic Times - Harvard Business School Association of India Award, against 200 contenders. Its main Models are

Hero Honda
o o o o o o o o o

cbz splendor cd100 cd100ss street smart passion Karizma CD dawn Ambition

OBJECTIVES OF THE STUDY

The study was done primarily with the following objective in mind.

 To study the brands of Hero & consumers perception with its competitors.

How company can create its brand image in the market.

How advertisement help hero to make its brand image?

How advertisement strategies of hero motocorp influence the customer?

Whether advertisements make company to sustain on leading position?

To know why people buy Hero and why some people prefer other company.

To study the features of different brands those give a good idea of various products and services offered by the company.

To understand the competitive environment in which the company is operating and is desired to meet customer need and satisfaction.

To provide useful information to the company about the product features of various competing companies.

SCOPE OF THE STUDY

Hero Honda is spreading its wings and widening its business horizon to reach and serve customers at new centers in the year ahead. The company services are backed by a highly motivated and technology driven team to achieve customers need, product expertise and geographic reach.

The study is oriented towards the concept of different brands offered by Hero Honda and its competitors to its customers. The company has endeavored to move fast in providing market solution, which maximize customer needs and convenience, using multiple delivery channels in composing the agency network, service centers, lower service cost and increased efficiency.

Competition from major player

In the present scenario of automobile industry the major companies are: -

Manufacturers

Products

% of market share

HERO HONDA BAJAJ AUTO LML TVS YAMAHA ENFIELD

Motorbikes Scooter+Motorbikes+ Scooterate Scooter+Motorbike+Scootrate Motorbikes+Scootrate Motorbikes Motorbikes

75% market share 25% market share 30% market share 15% market share 15% market share 10% market share

1 OVERVIEW OF AUTOMOBILE SECTOR IN INDIA

The Automobile sector is one of the fastest growing manufacturing sectors in India. In the 90s the industry witnessed an average growth rate of above 20 percent. Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two wheeler production, ranking second only to Taiwan.

The world leaders in the sector are evincing keen interest in establishing manufacturing facilities for manufacturing and assembling components.

A politically stable and vibrant State, Andhra Pradesh is centrally located with the support of seaports, international airports, assured and reliable power supply, abundant water, broad base of auto component manufacturers, highl y trained,

skilled and disciplined manpower and is therefore, the preferred location for Automobile industries.

The interest of the state has been duly noted by Global Auto Majors, who have indicated their interest to consider Andhra Pradesh for establishing manufacturing facility.

The Government of Andhra Pradesh invites leaders in the industry to set up manufacturing facilities to manufacture vehicles or vehicle components in the State. The ideal places to locate companies in the Auto Sector are the HyderabadZaheerabad, Visakhapatnam-Kakinada, Krishnapatnam-Tada-Sathiveedu and

Vijayawada-Guntur corridors.

The Government is also formulating an Auto Policy, which would give a proper direction to the growth of the sector. There are more than 20 auto component manufacturing companies in the State, manufacturing components such as grey-iron castings, precision aluminium castings,

leaf springs,oils and lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical, front axles, gears, forging, machined components, pressed metal components, pistons, cylinder liners, nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure die castings, clutch covers, fuel filters ,etc.

Most of these components are presently being supplied to Hero Honda, TVS Suzuki, Escorts Yamaha, Bajaj and others. Amaron Batteries are manufactured in Chittoor district. Around 119 components manufacturers have been certified for ISO 9000 quality standards and seven companies achieved the QS 9000 quality standard set by government and motors association.

Hero Moto Corp

Hero Motocorp Ltd. formerly Hero Honda is Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at 108. In 2010, When Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4th June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent-Hero Investment Pvt. Ltd. into the automaker.The decision comes after 18 months of its split from Honda Motor. 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. A popular advertising campaign based on the slogan 'Fill it - Shut it - Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years (19842010) has come from the Japanese counterpartHonda Hero MotoCorp has three manufacturing facilitie baseat Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year. Hero MotoCorp 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. The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million two-wheelers by 2016-17. This in conjunction with new countries where they can now market their two-wheelers following the disengagement from Honda, Hero MotoCorp hopes to achieve 10 per cent of their revenues from international markets, and they expected to launch sales in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand over the coming half decade, the company was going to build their fourth factory in South

India and their fifth factory in Western India. There is no confirmation where the factories would be built.

Termination of Honda joint venture

In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate the joint venture between Hero Group of India and Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to international markets (except Sri Lanka) and the termination would mean that Hero Group can now export. Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.

Hero MotoCorp
The new brand identity and logo, Hero MotoCorp, was developed by the London firm Wolff Olins. The logo was revealed on 9 August 2011 in London, the day before the third test matchbetween England and India. Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero is free to use any vendors for its components instead of just Honda-approved vendors.

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 twowheeler companies put together. Hero Honda's bike Hero Honda Splendor sells more than one million units per year. On 1st June 2012, Hero MotoCorp reported its highest ever monthly sales at 5, 56,644 units in May, registering a growth of 11.28%

BRAND AMBASSADOR
The company signed the Indian skipper of cricket team Saurav Ganguly, Virendra Sehvag, Harbhajan Singh, Zaheer Khan & Yuvraj Singh as its brand ambassadors joining the add campaign together to promote Ambition. All of these celebrities are the member of Indian cricket team and very much popular in younger generation. In the last year with the launch of its new premium bike Karizama Hero Honda signed its new brand ambassador who is a cine star and is also very popular. He is Hritik Roshan.

Questionnaire for the survey of Motorbikes .

Name

__________________________________________________

Address

_____________________________________________ _____________________________________________

Phone No. Mobile no.

1. Do you have any bike? Yes ( ) No ( )

2.

If Yes what is the Brand Name of that bike? ________________________________________________________

3 . If No, Do you have any plan to buy it in next 6 months?

Yes ( )

No ( )

4. If Yes, Name and Company of the Bike ________________________________________________________

5.

Which bike company do you like most?

Hero Motor Corp. Honda Bajaj Yamaha Any other

Rank the Motorbike manufacturing company. (Put marks ranging from 1 to 5)

Hero Motor Corp. Honda Motor Corp Bajaj L.M.L. Yamaha

7.

What should the price range in your opinion?

Splendor +

___________________
CD dawn Passion + ___________________ ___________________

Sufficient

[ ]
[ ] [ ]

Sufficient Sufficient

CBZ

___________________
Sufficient

Sufficient

[ ]

Karizma___________________

8.

Any new facilities or any improvement that you want. ___________________________________________________________________________ _____________________________________