SEMINAR REPORT

ON
MARKETING STRATEGIES OF HERO
MOTOCORP.Ltd
Subject: Seminar
Subject Code:MMS-456

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTERS
OF BUSINESS ADMINISTRATION (MBA)
[2015-2016]

Submitted To:

Submitted By:

DR JASVEEN KAUR

Nancy Thakur
MBA(Hons)
Roll No: 2015MMB103

UNIVERSITY BUSINESS SCHOOL

GURU NANAK DEV UNIVERSITY, AMRITSAR
1

DECLARATION

I hereby declare that the Dissertation project entitled MARKETING

STRATEGIES OF HERO MOTOCORP.LTD submitted by me as a
partial fulfillment for the award of Masters of Business Administration
to GURU NANAK DEV UNIVERSITY, AMRITSAR is original and
genuine work carried out by me.

Date:
Place:

ACKNOWLEDGEMENT
This Report work is written in accordance with the Master of Business
Administration course prescribed by Guru Nanak Dev University.
A Report of this nature involves the support of many people. I believe that
would be lacking in my duty if I do not express my sincere gratitude to them.
With all sincerity, I would like to express my gratitude to Dr. Jasveen Kaur. For
giving an opportunity to undergo Corporate Exposure and learning about Hero
Moto corp..
I am especially thankful to our external Guide Mr.Salil Arora
(General Manager) and his colleague, for giving relevant and
necessary guidance. I am all thankful to all the officers for giving
me warm support & providing me necessary information and
helped me. I am also thankful to the customer of Hero Agency for
giving necessary information and filling questionnaire.

I would like to express my deep sense of gratitude to my reseacrch guide

Dr.Jasveen Kaur, without her guidance this research would not be made the way
in which it is. I am very thankful to her for her constant support and valuable
guidance. I am indebted to my family and friends for their kindly co- operation.

Table of Contents
Chapter No

Title

Page No

Introduction

Literature Review

Research Methodology

20

Industry profile

23

Company profile

34

Objectives

38

Scope and Need of Study

39

Data Analysis and

interpretation

41

Findings and Discussions

60

10

61

11

Suggestions and
Recommendations
Conclusion

12

Bibliography

63

13

Annexure

7
10

62

64

EXECUTIVE SUMMARY
The main objective of this project is to check the Marketing Strategies which are
followed by Hero Moto Corp. Marketing starts with identifying the needs of
customers and ends in satisfying those wants. The goal of marketing is to attract
new customers by promising superior value and to keep current customers by
delivering satisfaction based on their preferences retaining them.

The first section of my report deals with a detailed company profile. It includes the
companys history: its activities and operations, organizational structure, etc. this
section attempts to give detailed information about the company and the nature of
its functioning.
The second section deals with marketing strategies. In this section, a brief
conceptual explanation to Market Positioning , Marketing segmentation and
Marketing Targeting of Hero Moto Corp. It contains the definition, process and
significance of Marketing.
In the third section of my report, I have conducted a research study to evaluate
Marketing Strategies of Hero Moto corp. This section also contains my findings,
conclusions, suggestions and feedback.
The fourth and final section of this report consists of extra information that I
related to the main contents of the report. These annexure includes the
Questionnaire on the basis of which the primary data was collected and research
study was conducted.

INTRODUCTION TO HERO MOTOCORP LTD.

Hero Motorcorp Ltd. (Formerly Hero Honda Motors Ltd.) is the worlds largest manufacturer of
two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of

unit volume sales in a calendar year. Hero Motorcorp Ltd. continues to maintain this position till
date.

The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered
India, powered by its two wheelers. Hero Motorcorp Ltd., company's new identity, reflects its
commitment towards providing world class mobility solutions with renewed focus on expanding
company's footprint in the global arena

Hero MotoCorps mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts
its customers into its brand advocates.

The company will provide an engaging environment for its people to perform to their true
potential. It will continue its focus on value creation and enduring relationships with its partners.

Hero MotoCorps key strategies are to build a robust product portfolio across categories, explore
growth opportunities globally, continuously improve its operational efficiency, aggressively
expand its reach to customers, continue to invest in brand building activities and ensure customer
and shareholder delight.
The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero
MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology
and creating global footprints. Building and promoting new brand identity will be central to all
its initiatives, utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground-level activation.
Hero MotoCorp two wheelers are manufactured across 3 globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
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Haryana in northern India. The third and the latest manufacturing plant are based at Haridwar, in
the hill state of Uttarakhand.
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero MotoCorps extensive sales and
service network now spans over to 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.
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 owned 26% stake in the Company.
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 doubledigit pace since inception. In 2001, the company became the largest two-wheeler manufacturing
company in India and globally. It maintains global industry leadership till date. The technology
in the bikes of Hero Moto corp (earlier Hero Honda) for almost 26 years (19842010) has come
from the Japanese counterpart Honda.

1956Formation of Hero Cycles in Ludhiana(majestic auto limited)

1975Hero Cycles becomes largest bicycle manufacturer in India.

1983Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated

1985Hero Honda motorcycle CD 100 launched.

1989Hero Honda motorcycle Sleek launched.

1991Hero Honda motorcycle CD 100 SS launched.

1994 Hero Honda motorcycle Splendor launched.

1997Hero Honda motorcycle Street launched.

1999 Hero Honda motorcycle CBZ launched.

2001 Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.

2003Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero
Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

2004Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*
launched.

2005Hero MotoCorp Super Splendor, Hero Honda motorcycle CD Deluxe, Hero

Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter
Pleasure.

2007New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus
and Hero Honda motorcycle Hunk launched.

2008new Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,

Glamour Fi and Hero Honda motorcycle Passion pro launched.

2009New Models of Karizma: Karizma ZMR and limited edition of Hunk launched

New Hero 2010new Models of Hero Honda motorcycle Splendor pro and Honda
motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.

2011New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme,
Karizma launched. New licensing arrangement signed between Hero and Honda. In August
Hero and Honda parted company, thus forming Hero Moto Corp and Honda moving out of
the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike
Named Hero "Impulse".

2012-New Models of Hero Moto corp Maestro the Masculine scooter and Ignitor the
young generation bike are launched.

2013-Hero Moto Corp unveiled line-up of 15 updated products including Karizma R,

ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Moto corp
Super Splendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three
new technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in
new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart.

REVIEW OF LITERATURE
Today as we know that the growth of the two wheeler automobile sector industry is to high and
due to this a very high level of competition is there, many domestic and foreign companies has
introduce their plants and factories around the countries and different cities so not at all the easy
task to start two wheelers automobiles company.
Today most of all products which are available to the buyers have a number of alternatives, while
they are taking purchasing decision. The aim of marketer is to meet and satisfy target customers
need and wants, the field of consumer behavior studies, how individual, groups and organization
select, buy, use, and dispose of goods, services, ideas and experience to satisfy their need and
desire.
The two-wheeler market comprises the largest segment of the domestic auto industry in terms of
absolute numbers. From a semi luxury product for the urban middle class in the eighties and
earlier, the two wheelers has now become not only the favorite mode of personal transport but
also the most coveted personal household durable possession among nearly all consumer classes,
except perhaps the most affluent. The leading vehicle in the two-wheeler segment is the stylish,

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fuel-efficient and sturdy 4-stroke motorcycle the purchase of which is influenced by various
factors like social, economic and technological factors.
Planning for the future to achieve the long-term objective is integral to the survival and growth
of every business. Strategic planning today has to take into cognizance the rapid changes in
technology, increased competitiveness and the turbulent business environment, also with the
world becoming one big global village.
Strategy covers every aspect of business from business reengineering, new business
development, product development and brand positioning to advertisements promotional
campaigns, media and publicity. It is a game of innovation.
In fact, marketing people are involved in marketing 10 types of entities; goods, services,
experience, events, persons, places, properties, organizations, information and ideas. Marketing
management is the art and science of choosing target markets and getting, keeping and growing
customers through creating, delivering and communicating superior customer value.
India is second largest manufacturer and producer of two-wheelers in the world. It stands next to
Japan and China in terms of the number of two wheelers produced and domestic sales
respectively.
Indian two-wheelers industry made small beginning in early 50s when Automobile products of
India (API) started manufacturing scooter in India. Hero was established on 13 th of April 1984.
The Indian two wheelers Industry can be broadly classified as scooter, motorcycles and
mopeds/scooters. In last six years domestic two-wheelers has seen structural charges. This can
be seen from the change in composition of two wheeler sales, where the motorcycles have gained
market share from the scooter and moped or scooters segments.
The consumer is now faced with proliferation of brand models. Getting new customers as well
as retaining them is an important task of manufacturers. So service after sales is very important.
A satisfied customer brings in more name and goodwill to the company, which is why customer
satisfaction is given more importance in todays competitive world. A study on this aspect with
Hero two-wheelers at Hero MotoCorp Ltd was made.

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A two-wheeler purchase is influenced by several factors like social, economic, technological and
aesthetic factors. Marketers do not take these factors into consideration for marketing their twowheelers for lack of awareness. Hence, an attempt has been made to investigate into those factors
that are responsible for the influence of a two-wheeler purchase decision and to determine the
most important promotional tool which a buyer thinks would influence his or her two-wheeler
purchase decision.

According to Alexander Preko

This study is on Marketing strategies and its effects on advertising revenue of TV Africa, Ghana.
The study focuses on how sales promotion is used to generate revenue, how it is done, the
common sale promotion tools and strategies adopted by the company, and to find out if sale
promotions increase advertising revenue. Sales promotion is an important component of any
organizations overall marketing strategy alongside advertising, public relations, and personal
selling. The study is significant because, it contributes to new knowledge by filling and reducing
the gap that exist in the understanding of sales promotion by management and other stakeholders
in the media network business. It also serves as source of references to other researchers in this
field. A descriptive research design was applied to describe sale promotion activities of the
organization. The sample size employed 41 respondents from TV Africa. Questionnaires were
administered to the sampled population to collect primary data and an interview was also
conducted with management to get some key information which is needed for this study.
However, the study made use of simple random sampling in selecting the clients, purposive
sampling for management and employees in marketing, accounts and operation departments. The
result of the study indicated that guarantees and warranties, souvenirs, discounts offer and give
away are the mostly adopted sales promotion tools by TV Africa. Chi-square test is used to check
the significant of sale promotions to increasing advertising revenue. It was concluded that
management should continue modifying or updating its sales promotion activities according to
the taste and preferences of its customers and the public at large.
Source: Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3
(2): 141-146, Scholar link Research Institute Journals, 2012 (ISSN: 2141-7024)
jetems.scholarlinkresearch.org

According to FaitiraManuere, Edison Gwangwava and KudakwasheGutu

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The aim of this paper is to establish if sales promotion techniques to be adopted at any given
time affect the companys sales volume and also to look at the effect of sales promotion on
company performance. To that end, the survey approach is adopted. The simple random
technique is used to ensure that all members of the population have an equal chance of being
selected. The chi-square approach is used to test hypothesis and to establish the effect of sales
promotion on company performance. The findings of the study reveal that the majority of the
respondents agreed that sales promotion affects organizational performance and sales volume of
the organization. To that end, organizations should make sales promotion as a critical component
of a small business marketing strategy. Therefore the use of effective and efficient sales
promotion campaign that arouses consumers interest to make repeated purchases is a
prerequisite.

Source: Achumbalheanyi (2002).Sales Management Concepts, Strategic and Cases. AIMark Education Research.

According to Dr. B. Rameshwaran

This study investigates and explores the relationship between variables which affect consumer
behavior on advertising and sales promotion for two wheelers in Pune city. It also attempts to
understand used two wheeler market in India. Questionnaires were distributed to respondents
living in Pune city who have purchased the used bikes. The total sample consists of 84
respondents. Chi-square was used to test the hypotheses. The result of this study provides
evidence and insights about the relationship between the variable which affects consumer
purchase decision affected through for used bikes. The study reveals the significant relationship
between family income and make of the bikes; gender and color of the bikes, family income and
selling price. Apart from that, the study also provides valuable insight toward the understanding
on how different advertisement and sales promotion activities provide the base for purchase
intention and affects the consumer buying purchase decision of used bikes.

Source: - http://www.abhinavjournal.com/images/Commerce_&_Management/Sep12/4.pdf

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The study tries to examine the growth pattern and trend of sales and advertisement expenses for
the selected companies over a period from 1992-93 to 2006-07. Further it seeks to evaluate the
effectiveness of advertisement expenses on sales of selected companies operating in India at
aggregate and disaggregate levels. It also tries to analyze the behavior of share of advertisement
expenses in total sales for the above mentioned categories. The study is based on panel or pooled
secondary data collected for advertisement expenditure and sales revenue of 134 randomly
selected sample companies operating in India over the period from 1992/93 to 2006/07 which are
further classified on the basis of amount of sales revenue as well as on the basis of type of
product produced. In this study of Panel or Pooled data, Fixed Effect approach with and without
dummy variables are applied to evaluate the effectiveness of advertisement expenses on sales.
Further, annual compound growth rates and summary statistics are also estimated. The
contribution has found that the growth rate of sales revenue of manufacturing and companies,
whose sales revenue is more than 1000 crore, is highest in spite of the negative compound
growth rate of advertising expenses of these two types of companies. Further, in case of nonmanufacturing companies, it has been found that these companies are less popular among the
consumers and they are also spending less on advertisements as compared manufacturing
companies. While answering, how much advertisement expenses need to be incurred, the study
concludes that to a large extent it depends on the nature and size of industries.

Marketing mix of Hero Motors:

Product:
Hero motors are known for its quality and advanced technology, satisfying the needs of the
customers both in urban and rural areas.
Place:
Hero Motors concentrates not only on urban areas, it targets rural areas as well. It has its
showrooms in almost every town in the country, making the two wheelers available everywhere
in the country.
Price:

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The pricing strategy of the Hero two wheelers is economical and value for money, they were
very reasonably priced .
Promotion:
The promotional strategy of Hero Motors is sponsoring lot of national and international events
and endorsed by the well knows personalities of the country.
They sponsor the events like cricket world cups.

Segmentation, Targeting and Positioning of Hero Moto Corp

1. Introduction to Two Wheeler Bikes
A motorcycle (also called a motorbike, bike) is a two wheeled motor vehicle. Motorcycles vary
considerably depending on the task they are designed for, such as long distance travel,
navigating congested

urban

traffic, cruising, sport and racing,

or off-road conditions.

Motorcycles are one of the most affordable forms of motorized transport in many parts of the
world and, for most of the world's population, they are also the most common type of motor
vehicle. There are around 200 million motorcycles (including mopeds, motor scooters, motorized
bicycles, and other powered two and three-wheelers) in use worldwide, or about 33 motorcycles
per 1000 people.
India, is the second largest producer of two-wheelers in the world. In the last few years, the
Indian two-wheeler industry has seen spectacular growth. The country stands next to China and
Japan in terms of production and sales respectively. Majority of Indians, especially the
youngsters prefer motorbikes rather than cars. Capturing a large share in the two-wheeler
industry, bikes and scooters cover a major segment. Bikes are considered to be the favorite
among the youth generation, as they help in easy commutation. The two-wheeler market in India
is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The
motorcycle market share is about 81.5% of the total two wheeler market in India. Three-fourths
of the total exports in the two wheeler automobile industry are made in the motorcycle segment.

Segmentation, Targeting and Positioning Related to Bikes

A market segment consists of a group of customers who share a similar set of needs and wants.

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The major segmentation variablesgeographic, demographic, psychographic, and behavioral

segmentation.

Geographic Segmentation (nation, states, regions, cities, density, climate, etc.)

Demographic Segmentation (age, family size, gender, income, family life cycle,
occupation, religion)

Psychographic segmentation (lifestyle, personality)

Behavioral segmentation (occasions, benefits, user status, usage rate, loyalty status,
attitude towards product)

For bikes, demographic segmentation plays an important role. Bikes cater to a particular age
group, gender and/or income group. Depending upon the segment, the features of the bike varies.
Hence, marketers should have a good knowledge about what features to add on as per the
segment they want to cater to.

Market Targeting

Once the firm has identified its market-segment opportunities, it has to decide how many and
which ones to target. Marketers are increasingly combining several variables in an effort to
identify smaller, better-defined target groups. In evaluating different market segments, the firm
must look at two factors: the segment's overall attractiveness and the company's objectives and
resources. After evaluating different segments, the company can consider five patterns of target
market selection.

Single segment concentration: Through concentrated marketing, the firm gains a strong
knowledge of the segment's needs and achieves a strong market presence.
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Selective specialization: A firm selects a number of segments, each objectively attractive

and appropriate.

Product specialization: The firm makes a certain product that it sells to several different
market segments.

Market specialization: The firm concentrates on serving many needs of a particular

customer group.

Full market coverage: The firm attempts to serve all customer groups with all the
products they might need.

Manufacturers of bikes need to be very precise while selecting their target market. They should
understand the consumers demand and then accordingly place their product. The products
features should satisfy its target customers and should be at per with the value it promises to its
target customers.

Market Positioning
Positioning is the act of designing companys offering and image to occupy a distinctive place in
the mind of a target market. The end result of positioning is value proposition, a cogent reason
why the target market should buy the product. [4]

Positioning in market is very important as well as difficult. Its making the consumers aware of
your product. Each bike must have a unique selling point which needs to be well portrayed in
consumers mind so that he has an additional choice in his mind.

Hero MotoCorp Ltd

Hero MotoCorp Ltd. formerly Hero Honda is an 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. In 2010, When Honda decided to move out of the joint venture,[7] Hero Group bought the

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shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity. Product range of Hero MotoCorp are: [5]

CD 100

Passion

Passion Plus

CD 100 SS

CBZ

Karizma

Splendor

CD Dawn

Ambition

Splendor +

CBZ Star

Ambition 135

Impulse

Acheiver

Pleasure

Street

Hunk

Joy

Glamour

CD Deluxe

Market Segmentation
Hero MotoCorp caters to a wide consumer base. It has segmented its market based on income
and age. It caters to youth of all income groups. Its highest selling bike Splendor is a favorite in
sub urban and rural India. It potrays itself as the most efficient bike range to cater to Indian
Roads.

Target Market
Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs 37,000 to
Rs 95, 000. Each product has multiple optional features. The USP that it uses are: strong, sturdy
and powerful, greater mileage, low maintenance cost, safe to ride, ease and comfort. Its target
market includes lower middle class consumer to upper middle class consumer. It is affordable,
available and acceptable by all.

Positioning Strategy
Fill it. Shut it. Forget it Campaign
This campaign focused on the mileage of Hero
bikes. It says that once you fill oil in the bikes
tank, you are tension free. Due to its higher mileage,

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you can travel as much as you want without bothering

to refill oil.

Dhak dhak go Advertisement campaign

Dhak dhak refers to the heart beat. Therefore this
campaign showed that if you are riding a Hero
bike you are listening to your heart. This campaign
connects emotionally to the consumer as it shows the
connection of bikes to the heart of every Indian.

Desh ki Dharkan Advertisement Campaign

Desh ki dharkan refers to the heart beat of the
country. It symbolizes that all people in India
are emotionally attached to their country. Even
though there are a lot of cultural differences but
the entire country stands as one. This campaign
places Hero bikes as the heart beat of the entire
nation uniting everyone as a nation.

Event sponsorships
Event sponsorships of various cricket matches is
a positioning strategy as cricket has a huge fan
base in India. It positions itself as a strong, reliable,
affordable and greater mileage bikes.

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Celebrity endorsements
Various celebrity endorsements are used as their positioning technique. Saurav Ganguly, when
he was captain of Indian Cricket team was their brand ambassador along with Hritik Roshan.
Both these personalities are unique in their fields. Saurav Ganguly was the face of Indian
cricket. People worshiped him. So, through Saurav Gaunguly, Hero potrayed itself as the heart
beat of the country. Iconic figure Hritik Roshan is known for his youth and physique. So through
him Hero tried to lure the youth.

Hum me hai hero campaign

This is the recent advertisement of Hero MotoCorp. This advertisement tries to prove that we all
are born super starts. We just need to focus and believe in ourselves. There is nothing impossible
in this world and there is nothing that cant be achieved. Through perseverance we can reach
great heights and achieve whatever we want. We just need to believe firmly that we are a hero.

Conclusion
Hero MotoCorp is the biggest two wheeler manufacturer in the world. It has the highest market
share in India. It has successfully delivering its promise to its target customers. The aggressive
market positioning strategy that it uses places it way above its competitors. It relates itself to
every Indian. It is a bike for the Indian consumers satisfying all their needs.

RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Redman and Mory define research
as a Systematized effort to gain new knowledge. Research is an academic activity and such the
term should be used in technical sense. According to Clifford Woody, Research comprises
defining and redefining problem, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and research conclusions; and at last
carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Research is thus an original contribution to the existing stock of knowledge making for its
advertisement. It is pursuit of truth with the help of study, observation, comparison and

20

experiment. In short the search for knowledge through objective and systematic method of
finding solution to problem is research.

RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the Research purpose with economy in procedure. In
fact the Research design is the conceptual structure within which Research is conducted: it
constitutes the blueprint for the collection measurement and analysis of data. It must be able to
define clearly what they want to measure and must find adequate methods for measuring it along
with a clear cut definition of population wants to study. Since the aim is to obtain complete and
accurate information in these studies, the procedure to be used must be carefully planned. The
research design must make enough provision for protection against bias and must maximize
reliability with due concern for the economical completion of the search study. Research design
is a conceptual structured within which research is conducted. It constitutes the blue print for the
collection, measurement and analysis of data.
Research design is must to focus attention on the following:
Formulating the objective of the study
Designing method of data collection
Selecting the sample
Data collection
Processing and analyzing the data
Finding and Descriptions
Descriptive research is adopted for this study. It includes surveys and fact finding enquiries of
different kinds. The major purpose of descriptive research is description of the state affairs as it
exists at present. The main characteristic of this method is that the 20 researcher has no control
over the variables. He can only report what has happened or what is happened. The major
purpose of Descriptive research is description of the state of affairs, as it exists at present.

Descriptive research concerns a univariate question in which we ask about or state

something about the size, form, distribution, or existence of a variable.

The main characteristics of this method are that the researcher has no control over the
variables; he can only report what has happened or what is happening. Descriptive
Research also includes attempts by researcher to discover causes even when they cannot
control the variable

DATA COLLECTION METHOD

For achieving the specific objectives of this study, data were gathered from both primary and
secondary sources.

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Primary Data The instrument used to collect primary data is through questionnaire from
the Manager and Executive. It gives first hand information to the researcher. In this study, a
questionnaire has been prepared with a view to analyze the work

Direct conversation with the respective Manager and Executive of the Departments.
Face to face conversation with the executives.
Employees opinion collected through Questions.
Observation of activities at organisations.

Secondary Data

Various Records of the company.

Website of Hero Moto Corp. Ltd.
Different types of system information.
Daily Performance Appraisal form of company.
Customer feedback form for knowing the response of customer in respect of employee
and organisation.

RESEARCH SAMPLING
The Study is primarily based on the primary data collected through Questionnaire and interview
from Hero Moto Corp. Ltd. (K.L Gupta, Gaya) Manager and Executives.

SAMPLING PLAN
Sample Area

Amritsar

Duration

3 week

Sampling units

Hero Motors Two wheelers users

No. of Samples

50 respondents

RESAERCH TOOLS
1. Questionnaire- The questionnaire is structured in two different forms. Some are partly
structured while some are partly unstructured. Some are opening ended while some are
close ended. Structured Questionnaire is selected as the tool for data collection, which
included a set of various types of Questions concerning different aspects of the subject
for the study. Several types of Questions were included in the Questionnaire such as
Open Ended Questions, Dichotomous and Multiple Choice questions.

22

2. Interview- Managers and Executives were interviewed by the researchers. With the
help of above questionnaire and through their opinion about performance appraisal
adopted by the company and the technique for appraising employees. Following ideas are
revealed during the interview of Manager and Executive
-

Performance is measured according to the number of bike sales in a week.

Enquiry maintenance is necessary for all employees because one enquiry
means one customer and one enquiry lapse means one customer lapse.
Employees are sent for campaign in city for promoting sale for enhancing
the capability of employee.
Top level checks the employees through pertaining the employee
confidence because if he has a confidence he is liable to give higher output.

3. Survey- The survey on the topic Marketing Strategies of Hero Moto Corp Ltd.
was carried by personal interview with Managers and Executives individually by me.

INDUSTRY PROFILE
The Indian two-wheeler contributes the largest volume amongst all the segments in automobile
industry. Though the segment can be broadly categorized into 3 sub-segments viz. scooters,
motorcycles and mopeds; some categories introduced in the market are a combination of two or

23

more segments e.g. scooters and step-thru. The market primarily comprises five players in the
two-wheelers segment with the most of the companies having foreign collaboration with wellknown Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in
India. and growth anticipated is higher than the 16 percent achieved in the past 10 years
The automobiles sector is divided into four segments-two wheelers(mopeds, scooters,
motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multipurpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers
(passenger carriers and good carriers).
The industry is one of the key drivers of economic growth of the nation. Since the globalization
of the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route,
Indian automobile sector has come a long way. Today, almost every global auto major has set up
facilities in the country.
The world standings for the Indian automobile sector, as per the Confederation of Indian
Industry, are as follows:

Largest three-wheeler market

Second largest tow-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment

The sector has shown a sluggish growth of 12 percent in 2012. The trend is likely to stay with a 10
percent growth outlined for 2013 citing high ownership costs (fuel costs, cost of registration, excise duty,
road tax) and slow rural income growth. Solid but cautious growth is expected over the next few years.
However, from a long-term perspective, rising incomes, improved affordability and untapped markets
present promising opportunities for automobile manufactures in India. According to Macquarie equities
research, sale of passenger vehicles is expected to double in the next four years

Two Wheeler & its role in Indian Context:

24

As the cities grow & suburbs expand, transportation needs becoming more & more acute,
with mounting pressure on its public transportation for which two wheelers are ideal.
The two-wheeler Industry today has a significant role in the Indian economy, with an
annual turnover of Rs. 9000 crores and compounded average growth of 10%. In recent years, it
is of the few industrial sectors in the growth phase today considers personal transportation as one
of the basic needs.
The two-wheeler industry basically comprises mopeds, scooters, scooters and
motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups,
offering company. This category dominated by TVS SUZUKI, which has a market share of 50%
today. The other major players in this segment include KINETIC ENGG., HERO MOTORS and
BAJAJ AUTO.
Scooters, which found largest segment in the industry (37 percent) is dominated by
BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and
technology to the Indian customers. However, dominance of this category has been declining
because of shift in the customer preferences.
Major part of the growth in the two-wheeler industry has come from motorcycle
especially, the Indo-Japanese 100cc motorcycles, which are considered, fuel efficient, reliable
and suited for rough roads.
Scooters also growing at a fast phase and are being increasingly perceived as a better
option providing convenience and motor style, by urban customers. In this category, TVS Scooty
holds a dominant market share.
With sales of over three million vehicles, India is the second largest two-wheeler market
in the world. Vehicle has become a necessity for day-to-day busy life, with the accelerated
industrial and business activity in a liberalized environment.

However, given the limited

purchasing power and to high cost of cars, majority of the middle class vehicle users prefer two
wheelers.
With sales of over million vehicles, India is the second largest two-wheelers market in the
world. China is the market leader with around 51 percent of the Asia Market, India, Thailand;
25

Indonesia & Taiwan are the other key markets for two-wheelers with market share of 19 percent,
10 percent, 9 percent and 5 percent respectively.
In the last four to five years, the two-wheeler market has witnessed a market shift towards
motorcycles at the expense of scooters. In the rural areas, consumers have come to prefer
sturdier bikes to withstand the bad road conditions. In the process the share of motorcycle
segment has grown from 48% to 58%, the share of scooters declined drastically from 33% to
25%, while that of mopeds declined by 2% from 19% to 17% during the year 2000-01. The Euro
emission norms effective from April 2000 led to the existing players in the two-stroke segment to
install catalytic converters. 4-stroke motorcycles are now replacing all the new models. Excise
duty on motorcycles has been reduced from 32% to 24%, resulting in price reduction, which has
aided in propelling the demand for motorcycles. Fierce competition has also forced players to
cut prices of certain models.
Competition has intensified over the last couple of years altering the dynamics in the
motorcycle segment with various companies planning to cash in on this spurt in demand by
calling off their JVs like Suzuki Motors planning to break off with TVS. Recently, Honda
Corporation of Japan announced its intentions to set up a 100% subsidiary to manufacture
scooters and motorcycles. Other players in the two-wheeler industry include Bajaj Auto Ltd.,
Kinetic Motor Co.Ltd. LML and Escorts Yamaha. Low interest regime has helped in reducing
cost of loans, which will help in boosting sales of 2-wheelers, since 80% of the two-wheelers are
credit stimulated.
The two-wheeler industry is passing through a critical but interesting phase. For many
years, it was growing continuously but the turning point came in 1996=97 when it started
slowing down. The impact was really (MI) felt in the next year when the overall growth was
hardly two percent. This was also possible only because the motorcycle segment showed a
healthy growth of 15 percent. The scooter segment went down by 3 percent and mopeds by 6
percent.
Another highlight is that the motorcycle sales have surpassed the scooter sales for the
first time in 1998-99. Until then, motorcycle sales were always trailing behind.

26

The net result is that motorcycles now account for 41 percent of the two-wheeler market,
while scooters account for 36 percent. Mopeds have been able to hold their own at about 21
percent.
GROWTH OF MOTORCYCLES
It is therefore not surprising that every major player is trying to get into the Motorcycle
market to have a piece of the cake.
Hero MotoCorp Ltd is indisputable the leader with 38 percent share followed by Bajaj
with 27 percent (includes M-80), TVS at 19 percent and Escorts at 13 percent. Now LML and
Kinetic have announced their plans to manufacture motorcycles, which are likely to come in the
market by next year. The battle is expected to be fierce but the consumer will be the greater
beneficiary.
The growth in motorcycles is slowly losing its hold. It is considered a family vehicle but
perhaps there is competition from the second hand car markets where prices have fallen down
rapidly. A1992 Maruti 800 is now available for just 70,000.
The scooter manufactures have to watch this phenomenon and bring our many new
product variants in the right price slots to sustain their shares in the market. The moped market
has been steady with an average growth of 3 percent. It is dominated by TVS which holds 48
percent market share followed by Kinetic and Majestic Auto at 23 percent and 18 percent
respectively.
In each segment, there is a wide gap between the first two contenders, which makes their
products positioning and marketing strategies most interesting. The two wheelers market seems
to be maturing. There are the usual their conventional segment of scooters, mopeds and
motorcycles. Two new segments are being created.

NEW SEGMENTS
A Step is through segment like Kinetic K4-100, Honda Street, Bajaj M-80, which is quite
close to the motorcycle segment. The other segment is scooterettes or mini scooters in which
vehicles such as Kinetic SX/Style, TVS Scooty, Hero Winner, Bajaaj Sunny/Sprite/Safire and

27

LML trendy can be considered. These are vehicles under 75 cc and largely targeted at the youth
market such as college students, young boys and girls and new couples. They get the advantage
of lower excise duty at 16 percent as compared to 24 percent applicable over 75 cc. The trend is
towards push button start vehicles.

Among the majors in the two-wheeler industry, first quarter figure for the current year of some
players has been encouraging. The company sold 313,303 units last month as compared to
325,360 units in the same month last year. With this, BAL has recorded as 87 percent growth in
the motorcycle segment in the first quarter with sales of 130,577 units (93,631 units in the
corresponding period last year) BAL estimates market share of the first quarter-Geared scooters
75.9%, unguarded scooters- 16.5%, Step-thrus-72.3% and motorcycle-20.5%.
In the scooters segment, sales of Bajaj Sunny and Bajaj Spirit increased by 170 percent to
7,876 units. First quarter sales registered an impressive 78 percent growth with sales of 19,562
(10,995 units). The overall sales grew by 9.3 percent in the quarter when the company sold 3.24
lakh vehicles.
BAL however reported a decline in sales of scooters by 15.6 percent in the first quarter.
The company hopes to increase the share of motorcycle in its product basket from 18 percent last
year to 30 percent by 2003-04.
Hero MotoCorp Ltd enjoys tremendous brand equity in the motorcycle segment.
Kinetic Motors, another important player, managed to grow in 1999-2000, when the
scooters segments a whole slipped by around 5 percent. TVS Suzuki, a motor two-wheeler
market, has reported a growth of 13 percent in the first quarter period and sold 2.19 lakh units.
Sales of motorcycles and scooters were up by 18 percent and that of mopeds by 8 percent over
the same period last year.
The current year therefore promises to be a testing time for the two-wheeler industry.
Industry pundits feel that an overall growth rate of 5 percent should be possible as against 9
percent projected earlier. The sales volume therefore is expected to be around 3.8 million in
2000-2001.

28

DRAMATIC CHANGES:
Hero MotoCorp is now worlds largest manufacturer of two-wheelers. The company has

benefited from the demand shift to motorcycles, as it focuses solely on this product segment
(although has a product called Pleasure in Scooter segment). With fuel efficiency and riding
comfort as the main selling points, HMC has been able to address a wide market and post robust
sales growth even after its separation from the Japanese major Honda.
The coming years will see increasing competition due to the parity in products
and price. The only differentiators will be technology, quality, product range and service.
Imaginative marketing will emphasize relationship building, customer satisfaction and
relationship. All is exploring new techniques such as direct marketing and institutional sales.
Some of them are taking the vehicle actually to the customers doorstep. Now the customer is the
king.
HISTORICAL DEVELOPMENT OF TWO WHEELER INDUSTRY
India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next to Japan and China in terms of the number of two-wheelers produced and domestic
sales respectively. This distinction was achieved due to variety of reasons as if respective policy
followed by the Government of India towards the passenger car industry, rising demand for
personal transport, inefficiency in the public transportation system etc.,
In Indian two-wheeler, industry made a small beginning in the early 50s when
Automobile Products of India (API) started manufacturing scooters in the country. Until 1958,
API and Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three wheelers. Finally,
in 1980, it setup a shop to manufacture them in technical collaboration with Piaggio of Italy. The
agreement expired in 1971.
In the initial stages, API it was later overtaken by Bajaj Auto dominating the scooter
segment. Although various Government and Private enterprises entered the fray for scooters, the
only new player that has lasted until today is LML.
29

Under the regulated regime, foreign companies were not allowed to operate in India. It
was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being
as high as 12 years.
The motorcycles segment was no different, with only three manufacturers via Enfield,
Ideal Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were
two-stroke bikes. Enfield 350cc bikes and Escorts 175cc bike initially dominated the motorcycle
segment.
The two-wheeler market was opened to foreign competition in the mid 80s. And then
the market leaders-E5corts and Enfield- were caught unaware by the onslaught of the 100 cc
bikes of the four IndoJapanese joint ventures. With the availability of fuel-efficiency low power
bikes, demand swelled resulting in Hero Honda the only producer of four-stroke bikes (100cc
category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TYS Suzuki and Hero
Honda brought in the first two-stroke and four-stroke engine motorcycles respectively. These two
players initially started with assembly of CKD kits, and later on progressed to indigenous
manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese
motorcycles, which grew at a rate Of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50s, 60s and70s when the government prohibited new
entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s.
The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mm vehicles in
1990.
The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in
providing ease of use to the scooter owners. This helped in inducing youngsters and working
women towards buying scooters, who were earlier inclined towards moped purchases. In line
with this, the scooter segment has consistently lost its part of the market share in the
two~whee1er market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in1992, resulting in the production loss of 0.4mn vehicles.

30

Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero
Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel price, high input
costs and reduced purchasing power due to significant rise in general price level and credit
crunch in consumer financing. Factors as if increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in either company reporting losses or fail in
profits.India is one of the very few countries manufacturing three wheelers in the world. It is the
worlds largest manufacturer and seller of three wheelers. Bajaj Auto commands a monopoly in
the domestic market with a market share of above 80%; Bajaj Tempo, Greaves Ltd and Scooters
in India share the rest.
The total number of registered two-wheelers and three-wheelers on road in India, as on
March 1998 was 27.9nm and 1 .7nin respectively. The two-wheeler population has almost
doubled in 1996 from a base of 12.6mn in 1990.
PENETRATION OF TWO-WHEELERS:
On a base of around 28mn vehicles on Indian roads and around 175mn households, there
were only 160 motorized two-wheelers per thousand households in FY98. This compares poorly
with countries like Thailand where it is around 600 per thousand households. Also with a
household size of 5.5 persons and more than one wage earner in about 60% of the households,
the potential for a second vehicle demand is also good.
The number of households in the low-income group has fallen since FY86 and has been
more pronounced in the post-reform period. On the other hand, the number of households in the
middle, upper middle and high-income groups that form the consumer base for twowheelers,
have increased. Their share of the total number of households has increased from 10.6% in FY88
to 20.5% inFY96. This rising income profile however, has, been more pronounced in the urban
areas as average annual growth in industry surpassed that of agriculture in the period FY93 to
FY96.

31

Major Developments & Investments

Tata Motors Ltd plans to invest about 30 million (US$ 49.17 million) in the National
Automotive Innovation Campus (NAIC) for research and development (R&D). The
investment would be made through its subsidiary Tata Motors European Technical Centre
(TMETC) at the University of Warwick campus, UK.

Volvo India Pvt Ltd plans to set up truck and bus manufacturing facility in Malur,
Karnataka, with an investment of Rs 974 crore (US$ 158.32 million). The facility is
expected to give employment to about 2,125 people.

Manufacturing companies in Japan continue to view India as the top destination for
investmentsover China, Thailand, Vietnam, Brazil and Indonesiain the next three
years, according to Mr Masanori Nakano, Consul General of Japan in Chennai.

Tata Motors-owned Jaguar Land Rover (JLR) has entered into an agreement with the
state of Rio de Janeiro to build a manufacturing plant in Brazil with an investment of Rs
4,626 crore (US$ 751.95 million).

JBM Auto has formed a joint venture (JV) with Italian bus maker BredaMenarinibus to
manufacture luxury buses in India. The IndoItalian venture plans to set up a plant at
Kosi, near Faridabad in Haryana, and produce 2,000 buses every year initially, at an
investment of Rs 500 crore (US$ 81.27 million).

Mahindra & Mahindra (M&M) plans to develop the world's first hybrid technology that
can be deployed in vehicles with manual transmission and enhance fuel efficiency by
almost 20 per cent.

Amtek Auto has signed an agreement to buy Germany-based Kuepper Group of

companies for about 200 million (US$ 272.73 million) in its second big European
acquisition in 2013.

Honda Cars India will use the Ennore Port to export cars to South Africa. The
infrastructure for car exports at Ennore Port is attractive and cost effective.

32

Government Initiatives
The Government of India plans to introduce fuel-efficiency ratings for automobiles to encourage
sale of cars that consume less petrol or diesel, as per Mr Veerappa Moily, Union Minister for
Petroleum and Natural Gas, Government of India.
The Union Budget 201314 added some incentives to the industry. The analysis by Deloitte on
the Union Budget highlighted the following points:

The period of concession available for specified part of electric and hybrid vehicles till
April 2013 has been extended up to March 31, 2015.

The basic customs duty (BCD) on imported luxury goods such as high-end motor
vehicles, motor cycles, yachts and similar vessels was increased. The duty was raised
from 75 per cent to 100 per cent on cars/motor vehicles (irrespective of engine capacity)
with CIF value more than US$ 40,000; from 60 per cent to 75 per cent on motorcycles
with engine capacity of 800 cc or more and on yachts and similar vessels from 10 per
cent to 25 per cent.

In addition, an increase in excise duty from 27 to 30 per cent has been allowed for SUVs
with engine capacity exceeding 1,500 cc, while excise duty was decreased from 80 to 72
per cent, in case of SUVs registered solely to be used for taxi purposes.

An exemption from BCD will be provided to lithium ion automotive battery for
manufacture of lithium ion battery packs for supply to manufacturers of hybrid and
electric vehicles.

The excise duty on chassis of diesel motor vehicles for transport of goods reduced from
14 per cent to 13 per cent.

The Government of India allows 100 per cent FDI in the automotive industry through automatic
route.
Road Ahead
The vision of Automotive Mission Plan (AMP) 20062016 expects India, to emerge as the
destination of choice in the world for design and manufacture of automobiles and auto
components with output reaching a level of US$ 145 billion; accounting for more than 10 per
cent of the gross domestic product (GDP) and providing additional employment to 25 million
people by 2016.

33

With special focus on exports of small cars, multi-utility vehicles (MUVs), two and three
wheelers and auto components; the automotive sectors contribution to the GDP is expected to
double reaching a turnover worth US$ 145 billion in 2016, according to the AMP 20062016.

Latest update: January, 2015

Revenues
The gross turnover of automobile manufacturers in India
expanded at a compound annual growth rate (CAGR) of 17.7 per
cent over FY07-11.

Market Segments
Two wheelers segment accounted for about three quarters of the
total automotive production in the country during FY13.

34

COMPANY PROFILE
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of
two - wheelers, based in India. In India, it has a market share of about 46% share in 2-wheeler
category. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at
108. On 31 March 2013, the market capitalisation of the company was INR 308 billion (USD
5.66 billion)
Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of
Japan. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the
shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp
with a new corporate identity.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position till
date.
HeroMotoCorp is now worlds largest manufacturer of two-wheelers. The company has
benefited from the demand shift to motorcycles, as it focuses solely on this product segment
(although has a product called Pleasure in Scooter segment). With fuel efficiency and riding

35

comfort as the main selling points, HMC has been able to address a wide market and post robust
sales growth even after its separation from the Japanese major Honda.

VISION
The story began with a simple vision the vision of a mobile and an empowered India, powered
by its bikes. Hero MotoCorp Ltd., companys new identity, reflects its commitment towards
providing world class mobility solutions with renewed focus on expanding companys footprint
in the global arena.

MISSION
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts
its customers into its brand advocates. The company will provide an engaging environment for
its people to perform to their true potential. It will continue its focus on value creation and
enduring relationships with its partners.
STRATEGY
Hero MotoCorp's key strategies are to build a robust product portfolio across categories, explore
growth opportunities globally, continuously improve its operational efficiency, aggressively
expand its reach to customers, continue to invest in brand building activities and ensure customer
and shareholder delight.
MANUFACTURING
Hero MotoCorp two wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in
the state of Haryana in northern India. The third and the latest manufacturing plant are based at
Haridwar, in the hill state of Uttrakhand.

36

TECHNOLOGY
In the 1980's the Company pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. It became the first company to launch the Fuel Injection
(FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.
Its plants use world class equipment and processes and have become a benchmark in leanness
and productivity.
Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to innovate and
develop cutting edge products and processes

DISTRIBUTION
The Company's growth in the two wheeler market in India is the result of an intrinsic ability to
increase reach in new geographies and growth markets. Hero MotoCorp's extensive sales and
service network now spans over to 5000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.

Supply chain management

As the Company prepares to produce a wider range of products, efforts are being taken to align
the supply chain and prime up its supplier base. During the year, the Company kick-started the
process of migrating its existing brands to the new brand. The exercise is expected to be
completed during 2012-13.
During the year, the Company also commenced the process of working with its vendors to
develop new parts. The Companys Supply Chain Management function is built on three planks:

Cost
Quality
Sustainability

37

Tracking inventory cost effectively and efficiently is known to be a key source of competitive
advantage in the automobile industry. Hence, it comes as no surprise that cost leadership is the
Companys prime focus area. Continual pressure on margins forced the Company and its supply
chain partners to find innovative and alternate ways to combat inflation. Considerable attention
was given to managing component inventory in the system, with double-digit growth in
inventory turnover. To align HR processes with the supply chain, top two HR consulting firms in
India are working with supply chain partners. The exercise is aimed at improving robustness of
people processes and resulting in a direct impact on quality, cost, productivity, delivery and
reliability. The move will enable supply chain partners move to the next orbit of operational
excellence. The Company initiated more than 30 quality improvement projects with supply chain
partners to provide better quality products to customers.

BRAND
The new Hero is rising and is poised to shine on the global arena. Company's new identity "Hero
MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and technology
and creating global footprint. Building and promoting new brand identity will be central to all its
initiatives, utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground- level activation.

38

OBJECTIVES
This study was conducted keeping the following objectives in mind.
1. To study the factors which influence the purchase of Hero two-wheelers?
2. To know the customer level of awareness of Hero two-wheelers.
3. To find the after sales service offered by Hero MotoCorp Ltd.
4. To know the customer level of satisfaction of Hero two-wheelers with respect to Hero
MotoCorp Ltd.
5. To find the profile of Hero MotoCorp Ltd two-wheeler customers.
6. To understand two wheeler sector in India.
7. How the split with Honda has affected Hero motors.
8. To study the role of advertisements, in persuading a consumer to buy two wheelers.
9. To analyze the importance of various promotional tools in the purchase of two wheelers
of Hero Moto Corp Company.
10. To know the most influence media to create awareness regarding two wheelers of Hero
Moto Corp Company.
11. To measure the effectiveness of various promotional tools in the purchase of two
wheelers of Hero Moto Corp Company.

39

SCOPE OF THE STUDY

This study helps the organizations to increase their service and product quality and in
turn increase the market share, top and bottom line of the company.

NEED FOR THE STUDY

Marketing starts with identifying the needs of customers and ends in satisfying those
wants. The goal of marketing is to attract new customers by promising superior value and to
keep current customers by delivering satisfaction based on their preferences retaining them.
Without customer, no market exists. As the customers are regarded as the superiors in
todays market, the level of satisfaction and their preferences should be keenly studied.
The two-wheeler industry has been expanding rapidly .Gone are the days when
possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a mere necessity.
Prior, sale of two-wheelers was mainly confined to urban areas but lately in rural areas
the bicycles are being replaced by power driven two-wheelers such as scooters, motorcycles.

40

Not only this, this industry has also customers ranging from all demographic segments. It
has been common sights that even school going children are driving two-wheelers. The women
customers are also increasing due to increase in women literacy and employment.
Getting a new customer is difficult, than retaining a current customer is a more difficult
one and not only that it is estimated that the cost of attracting a new customer is five times the
cost of retaining current customer. It requires a great deal of effort to induce satisfied customer
to switch away from their current preference. Thus, customer satisfaction is been given top
priority in todays competitive world.
Therefore, keeping the above stated objective in mind, this study was conducted to ascertain the
customers satisfaction towards Hero two-wheelers in Hero MotoCorp Ltd. In view of this, a
detailed study of customer preferences, levels of satisfaction and their complaints and
suggestions was undertaken.

DATA ANALYSIS AND INTERPRETATION

Q.1: which hero bikes do you own?
Frequency

Percent

HERO

258

86%

HONDA

18

6%

BAJAJ

16

5%

TVS

2%

YAMAHA

1%

Total

300

100%

41

0%
5%2%
6%

HERO

HONDA

BAJAJ

TVS

YAMAHA

86%

Interpretation:From the above table and chart we can find that the out of 100% customerrespondents the86% of
customers are using the Hero companys bike, 6% customers are using Honda Companys bike,
5% customers are using Bajaj companys bike, 1% customers are using Yamaha companys bike,
2% customers are using TVS companys bike.So, here we can conclude that the major customers
are of the Hero Company
.Q.2:

Who influenced you to make the purchase of Hero Motors.

A) Friends

B) Family

Influencers
Friends
Family
Sales People
Total

C) Sales People

Response
21
18
11
50

42

25
20
15
10
5
0
Friends

Family

Sales People

Interpretation:From the above interpretation it is observed that the purchase is mostly influenced by friends
42% , family 36% and by sales people is just 22% which is the least of the others.

Q.3: Are you aware of any other dealers of hero?

Frequency

Percent

YES

84

28%

NO

216

72%

Total

300

100%

43

28%
YES

NO

72%

Interpretation:28% (rate)is the customers are direct purchase in dealers of hero bike, and 72% (rate) purchase
are in show room to hero bike.

Q.4: Are you satisfied with the delivery time of your motor cycle.
A) Yes

B) No
Yes
No
Total

Response
36
13
50

44

delivery time
40
35
30
25

delivery time

20
15
10
5
0
Yes

No

Interpretation:From the above table it is very clear that maximum respondents are satisfied with the
delivery time of the motorcycle i.e 72% and the remaining 28% were not satisfied by the
delivery time.

Q.5: From which source of advertisement did you know about the
above dealers?

TV
INTERNET
RADIO
FRIEND

Freq
uenc
y

Per
cen
t

40

13
%

22

7%

71

24
%

60

20
%

45

WORD OF
MOUTH

75

25
%

NEWS
PAPER

17

6%

15

5%

300

100
%

BANNER&H
OURDING
Total

TV

6%5% 13%

INTERNET

7%

RADIO

25%

FRIEND
WORD OF MOUTH

24%

NEWS PAPER

20%

BANNER&HOURDING

Interpretation:From the above table and chart we can find that out of 100% respondents the 25% of customers
are word of mouth hero bike to purchase, 6% customer are through their newspaper, 13%
customers are heard through TV adds, 20% customers are known from friends and 7% customers
are known from the internet source, 24% customers are purchase from radio sources and only 5%
customers banner &hourding purchase the bike.So, here the major customers are known about
the bike through word of mouth and radio news of the company.

Q.6: Do you watch/read advertisement?

Frequency
YES

267

Percent
89%

46

NO
Total

33

11%

300

100%

11%

YES

NO

89%

Interpretation:From the above table and chart we can easily say that customers watch/read advertisement.89%
customers yes and 11% no watch/read advertisement..
So, we can easily say that majority of the 89% customer yes to watch advertisement hero bike.

Q.7: How do you think is the reliability of the hero vehicles.

A) Excellent

B) Good
Excellent
Good

C)Average

D)Poor

Response
20
22
47

Average
Poor
Total

6
2
50

Reliability
25
20
15

Reliability

10
5
0
Excellent

Good

Average

Poor

Interpretation:From the above table it is very clear that maximum respondents feel that reliability of hero
Vehicles is excellent and good i.e 40% and 44% and 12% feel average and only 4% of
respondents feel its poor. Hero motors can take measures to improve reliability of its vehicles to
attract more customers and to satisfy the existing customers

Q.8: I like advertisement of Hero, because of Hero Bike?

Frequency

Percent

THRILLER

119

39%

ACTION

116

39%

CELEBRITIES

39

13%

THEME OF
ADVERISEMENT

26

9%

48

Total

300

100%

9%
13%
40%
THRILLER

ACTION

CELEBRITIES

THEME OF ADVERISEMENT

39%

Interpretation:From the like advertisement of above chart out of 100% respondents show that 39% respondents
are thriller, 39% respondents are action, 13% respondents are celebrities, 9% of respondents are
them of advertisements.So, here we can find that the major customers of Hero Moto auto mobile
Companys advertisements of hero bike are the 39% thriller and 39% action hero bike.

Q.9: What is your level of satisfaction of service with Hero Motors

A) Excellent

B) Good
Excellent
Good
Average
Poor
Total

C) Average

D)Poor

Response
20
22
6
2
50

49

service
25
20
service

15
10
5
0
Excellent

Good

Average

Poor

Interpretation:From the above table it is very clear that maximum respondents feel that they were satisfied
with the service offered by Hero Motors is excellent and good i.e. 40% and 44% and 12%
feel average and only 4% of respondents feel its poor. Hero motors can take measures to
improve the service to its customers for maintaining the maximum satisfied customers which
will bring in more customers and good word of mouth for Hero Motors.

Q.10: Advertisement done by Hero Moto Corp is proper for the

customers?

Frequency

Percent

YES

262

87%

NO

38

13%

300

100%

Total

50

13%

YES

NO

87%

Interpretation:From the above table and chart we can say that advertisement done by the Hero Moto Corp
Company is very good. Here the out of 100% respondent the 87% of respondents are think that
advertisement done by the Hero Moto Corp Company will proper for the customer and only 13%
of respondents will think that it will not proper for the customer.So, here we can easily say that
majority of the customer will think that advertising and sales promotion activities of Hero Moto
Corp Company will proper for the customer.

Q.11:. What is the reason for your preference of Hero.

A) Quality

B) Fuel Efficiency C) Economic

Preferences
Quality
Fuel efficiency
Economic
Good Service
Total

D) Good service

Responses
10
20
8
12
50

51

Reason for preference

25
20
15
10
5
0

Reason for
preference

Interpretation:From the above table it can be concluded that maximum respondents prefer hero vehicles as
they were satisfied with the service offered by Hero Motors is excellent and good i.e. 40%
and 44% and 12% feel average and only 4% of respondents feel its poor. Hero motors can
take measures to improve the service to its customers for maintaining the maximum satisfied
customers which will bring in more customers and good word of mouth for Hero Motors.

Q.12: Is Hero Moto Corp Companys advertisement trust worthy?

Frequency

Percent

YES

263

88%

NO

37

12%

300

100%

Total

52

12%

YES

NO

88%

Interpretation:From the above table and chart we can say that advertisement done by the Hero Moto Corp
Company is trust worthy. Here out of 100% respondent the 88% of respondent will trust on the
advertisement done by the Hero Moto Corp Company and only 12% of respondent will think that
advertisement will not trust worthy So, here majority of the customer will think that
advertisement done by the Hero Moto Corp Company will trust worthy.

Q.13: From how long are you using the Hero vehicle.
A) <6months

B) 6-9 months
Usage
Less than 6 months
6-9 months
9-12 months
More that year
Total

C)9-12 months

D)more than year

Responses
5
10
13
22
50

53

usage period
25
20
usage period

15
10
5
0
Less than 6 months

9-12 months

Interpretation:From the above table it can be concluded that maximum respondents i.e 44% using Hero
vehicles for more than a year and 26% of respondents using from 9-12 months, 20% using
from 6-9 moths and 10% are the new customers. From this we can conclude that most of the
hero vehicles users are using from long period . so if hero motors concentrate on providing
better service after the purchase to the customers they will keep using the Hero vehicles for
longer period.

Q.14: Is Hero Moto Corp Companys advertisement better than its

competitors?

Frequency

Percent

YES

269

90%

NO

31

10%

300

100%

Total

54

10%

YES
NO

90%

Interpretation:From the above table and chart we can say that advertisement done by the Hero Moto Corp will
better than the competitor. Here out of the 100% respondents 90% of respondents will think that
the advertisement will be better than the competitors and only 10% of respondents will think it
will be not better than the competitors.So, here the majority of the respondent will think that
Hero Moto Corp Companys advertisement is better than his competitors.

Q.15: How do you think Hero can improve on customer service .

A) Service in time B) well trained mechanics
Preference
Service in time
Well trained mechanics
Less labor cost
Total

C)Less labor cost

Response
15
24
11
50

55

Improving serivce
30
25
20
15
10
5
0

Improving serivce

Interpretation:48% of respondents feel that the customer service at hero motors can be improved by
training the mechanics and 30% feel by doing service in time, 22% feel it by providing
the service for lesser costs.
Providing the satisfying service is very essential for any company to keep its customers
satisfied. Hero must take care of all the three as they were important to increase service.

Q.16: What was your reactions after watching the Advertisement?

Frequency

Percent

CALLED THE DEALER

42

14%

VISIT THE DEALER

26

9%

100

33%

121

40%

GATHERED MIRE
INFORMATION FROM
FRIENDS
GATHERED MORE
INFORMATION FROM

56

INTERNET
NO ACTION
Total

11

4%

300

100%

CALLED THE DEALER

VISIT THE DEALER

4% 14%
9%

40%
GATHERED
MIRE INFORMATION FROM FRIENDS

GATHERED MORE INFORMATION

33%FROM INTERNET

NO ACTION

Interpretation:From the above table and chart out of 100% respondents 14% respondents called the dealer, 9%
respondents visit of the dealer, 33% respondents gathered more information from friends, 40%
respondents gathered more information from internet, 4% respondents no action.So, here major
respondents are the gathered more information from internet(40%) and gathered more
information from friends (33%).

Q.17: Which age group do you belong.

A)20-25

B)25-35
Age group
20-25 years
25-35
35-45
Above 45
Total

C) 35-45

D) above 45

Responses
5
16
21
8
50

57

Age groups

20-25 years; 10%

Above 45; 16%

25-35; 32%

35-45; 42%

Interpretation:The maximum users of the hero vehicles belong to the age group of 35-45 followed by
25-35, 42% belong to age group of 35-45 and 32% belong to 25-35, 10 % of respondents
are between 20-25 years of age and 16 % are above 45. From this is clear that the mid
aged people are using the hero vehicles mostly. It has to produce different models for
younger population.

Q.18: Problems faced at the time of service.

A) High spare parts cost B)Low quality
Problem faced
High spare parts cost
Low quality
Delay in service
No problems
Total

C) Delay in service

D)No Problems

Response
10
10
14
16
50

58

customer issues
18
16
14
12

customer issues

10
8
6
4
2
0
High spare parts cost

Delay in service

Interpretation:It was very good that 32% customers not facing any problems with the service with the
hero but there were some problems faced by the customers which should mostly
concentrate. 20% feel the spare parts cost is high and 20% that the quality of service is
low, 28% feel that the service is slow.

Q.19: Will you recommend Hero Motors to others.

A) Yes
Recommendation
Yes
No
Total

B) No
Response
41
9
50

59

Recommendation to others

No; 18%

Yes; 82%

Interpretation:From the above responses from the customers it is clear that 82% of the respondents
would
like to recommend Hero to others and only 18% dont want to recommend
which is less percentage but hero should have to take measures to convert the unsatisfied
as satisfied customers who in turn recommend hero products to others.

Q.20: Are you satisfied with the overall service of Hero.

A) Yes

Recommendation
Yes
No
Total

B) No

Response
40
10
50

60

overall satisfaction
40
35
30

overall satisfaction

25
20
15
10
5
0
Yes

No

Interpretation:From the above responses from the customers it is clear that 80% of the respondents were
satisfied with the overall service of the Hero motors and 20% were not satisfied hero
should have to take measures to convert the unsatisfied as satisfied customers.

SUMMARY OF FINDINGS

1. The Hero MotoCorp is leading the market. The difference is too big to cope up with, for
any manufacturer in short span. With proven products and many people having faith in
brand, it is quite a difficult task for others to take the Heros number one position.
2. Ability to understand customers needs and wants, maintenance cost is low.
3. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a big number
4. The TV promotions are more influence the customer behavior of two wheeler sector.

61

5. The purchase desiccations of consumers are influence by friends and family.

6. Blue, Red, Black color bike with 150 cc to 200cc is fast moving.
7. Most of the despondences are agree that the bikes are delivering proper time.
8. The service provide by Hero MotoCorp is satisfied by more than 70% of customers.
9. Brand name of Hero is still good in market after split with Honda
10. Quality, price, Brand image, Fuel efficiency is getting equal importance in satisfaction
11. The research showing that consumer want to get more service satisfaction.
12. Maximum of the customer likes to recommend Hero two wheeler to their friends, its
shows they are satisfied with the bike.
13. Hero MotoCorp wrapped up with sales of 6.25 million bikes and scooters, considerably
ahead of its former Japanese partners tally of 3.72 million units

SUGGESTIONS AND RECOMMENDATIONS

It is very hard to hold the pulse of a customer in the market. Customers satisfaction is different
for different people at different situations;

Majority of the respondents were still unaware about different versions of Hero bikes.
Therefore I suggest the company personals should take initiative to create awareness
about these versions.

Few of the customers expressed concern over frequency of the maintenance & service
problems faced by their vehicle and expressed high satisfaction over it. Therefore, I
suggest them to re look at the vehicle & re-develop in order to stop the frequency of these
problems.

62

 Majority of customer are thinking that advertisement done by hero it required to change in
future, so here Hero have required to change their advertising and sales promotion
activities.
To suggest a few sales promotion techniques to improve the brand awareness amongst to
customers.
Suzuki and Yamaha are major competitors so Hero have required to providing the good
quality in bikes so they can increase their customers.
Company should also improve the TV ads of Hero.

CONCLUSION
Here we can conclude that the Hero Moto Corp Companys major competitors are the Suzuki
and Yamaha. So here the Hero Moto Corp Company will improve their product quality and
service of their bikes. Here we can find that the major customers will purchase the bike of Suzuki
and Yamaha in future compare to the Hero Moto Corp. So here Hero Moto Corp Company will
improve their product features so that they can increase their future customers. Here we will find
that the major customer of Hero Moto Corp Companys bike is 21-30 years age group. So here
company should try to maximize customers. Here maintain the all customer. Here the major
customers are the Hero Moto Corp Company is male.
This survey was done to identify various problem levels of satisfaction of consumers,
advertisement and sales promotion of Hero, So efforts might done to satisfy them which would
result in building long term relationship between customer and company.
So in short, finally the Hero Moto Corp Company will provide the good quality and good service
with their bikes. So it will increase their customers and it will give the full satisfaction to their

63

customers. This will provide a chance to maintain good relation with maximum customer so it
will be beneficiary to company in future time period.

BIBLIOGRAPHY
Web sites:http://auto.indiamart.com/two-wheelers
http://auto.indiamart.com/two-wheelers/hero-motocorp.html
http://compare.pricesofindia.com/showroom/hero-motocorp
http://en.wikipedia.org/wiki/Hero_MotoCorp#History
http://www.heromotocorp.com/en-in/investors/eventsnews
http://www.herohonda.advertisment.pro.coreproduct.org
http://www.studymode.com/essays/Advertising-And-Sales-Promotion
198231.html
http://www.zigwheels.com/newbikes

http://en.wikipedia.org/wiki/Hero_MotoCorp
Kavitha G. (2006) A Study On The Effectiveness Of The Advertising
Techniques Used In The Personal Care Segment Of Women Consumers, Indian
Journal of Marketing, Vol. 36, No. 8, pp. 12-16.

Books:-

64

 Kotler, Philip, Marketing Management, (Prentice-Hall of India, New Delhi,

2000). pp. 40-54
Beri G. C. (2006). Marketing Research. 3rd Edition. New Delhi: Tata McGrawHill publishing company Ltd pp. 135-151

ANNEXURE
Questionnaire
I Nancy Thakur Student of GURU NANAK DEV UNIVERSITY, doing
a survey on MARKEING STRATEGIES OF HERO MOTO CORP I
assure that the information which is been provided you are that kept
confidential and it will be used for survey [academic] purpose only.

Instructions:
1
2
3

Please tick mark () in as when asked to do.

Provide the information in detail whenever in is asked to do.
Provide your true feedback/answer.

Q.1: which hero bike do you own?

1. HERO5. YAMAHA
2. HONDA

6. SUZUKI
65

3. BAJAJ

7. ROYAL ENFIELD

4. TVS

8. ANY OTHER____________

Q.2: Who influenced you to make the purchase of Hero Motors.

A) FRIENDS

B) FAMILY

C) SALES PEOPLE

Q.3: Are you aware of any other dealers of hero?

A) YES

B) NO

IF YES, WHICH _____________

Q.4: Are you satisfied with the delivery time of your motor cycle.
A) YES

B) NO

Q.5: From which source of advertisement did you know about the
above dealers?
1. TV

2. INTERNET

3. RADIO

4.FRIEND

5. WORD OF MOUTH

6.NEWS PAPER

7. BANNER & HOURDING

8.OTHER________________

Q.6: Do you watch/read advertisement?

A) YES

B) NO

Q.7: How do you think is the reliability of the hero vehicles.

A) EXCELLENT

B) GOOD

C)AVERAGE

D)POOR

Q.8: I like advertisement of above, because of Hero Bike?

1. THRILLER

2.ACTION

3. CELEBRITIES

4.THEME OF ADVERISEMENT

Q.9: What is your level of satisfaction of service with Hero Motors

66

A) EXCELLENT

B) GOOD

C) AVERAGE D) POOR

Q.10: Advertisement done by Hero Moto Corp is proper for the

customers?
A) YES

B) NO

Q.11: What is the reason for your preference of Hero.

A) QUALITY

B) FUEL EFFICIENCYC) ECONOMIC

Q.12: Is Hero Moto Corp Companys advertisement trust worthy?

A) YES

B) NO

Q.13: From how long are you using the Hero vehicle.
A) <6MONTHS

B) 6-9 MONTHS

C)9-12 MONTHS

D)MORE THAN YEAR

Q.14: Is Hero Moto Corp Companys advertisement better than its

competitors?
A) YES

B) NO

Q.15: How do you think Hero can improve on customer service.

A) SERVICE IN TIME

B) WELL TRAINED MECHANICS

C) LESS LABOR COST

Q.16: What was your reactions after watching the Advertisement?

1. CALLED THE DEALER
2. VISIT THE DEALER
3. GATHERED MORE INFORMATION FROM FRIENDS
4. GATHERED MORE INFORMATION FROM INTERNET
5. NO ACTION

.Q.17: Which age group do you belong?

A) 20-25

B) 25-35

C) 35-45

D) ABOVE 45

Q.18: Problems faced at the time of service.

67

A) HIGH SPARE PARTS COST

B) LOW QUALITY

C) DELAY IN SERVICE

D) NO PROBLEMS

Q.19: Will you recommend Hero Motors to others?

A) YES

B) NO

Q.20: Are you satisfied with the overall service of Hero?

A) YES

B) NO

NAME:- _______________________________________
MO.NO:- ______________________________________

68