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Declaration

I, the undersigned Mr. DEPANI NAYAN M. hereby declare


that the project work presented in this report is my own
contribution and had been carried out under the supervision &
guidance

of

Professor

NAMITA

S.

TALASANIA

of.

GYANYAGNA COLLEGE OF SCIENCE &MANAGEMENT,


Rajkot.
This work has not been previously submitted to any other
University for any examination.
Date:
Place: Rajkot
DEPANI NAYAN M.

Preface
As we know business management as a science has
developed very fast during last four decades. Previously it was a
discipline subject but now it has grown into a science of
managerial decision-making. It is phrase to build a reputation and
easy to loose it companies that focus incurred become behind to
systematic changes in markets. Competition, distribution and
media technology are observing outside. There is a fundamental
truth in which that people are an important asset of organization
line cash in put into recurring accounts human resources can
appreciate in value. The management process made up with the
help of four steps.
Dimension
Preparation
Activities
Performance
Beside the study of management on personal, financial and
marketing, there is need for detail study for particular
management putting forward topic marketing management with
specialization. Marketing mix is a much complex and wide
subject. Lots of work can be done for a small topic.

Acknowledgement
I feel pleasure to submit this report, which includes
the practical aspect of study. I am very happy to express my
deepest gratitude to all the persons who spared their valuable time
and helped me a lot in preparation of this report.
I am also thankful to Executives of Perfect Auto
Service, Rajkot for granting me permission for my practical
training. I am very much thankful to Mr. Sandeep makadiya
officer, for his valuable guidance, co-operation and sparing his
valuable time also.

NAYAN M. DEPANI

Contents

SR

PARTICULARS

PAGE
NO.

1
2

General Information
Marketing Department

3
4
5
6
7
8
9
10

Human Resource Department


Finance Department
Research Department
Limitation of Study
SWOT Analysis
Suggestion
Conclusion
Bibliography

INDEX
SR

PARTICULARS

PAGE
NO.

INTRODUCTION
History, Growth and
Development of Automobile
Industry
History, Growth and
Development of Hero Honda
Limited
History, Growth and
Development of Perfect Auto

2
3
4

Service
Project at a Glance
Changing Role Of Marketing
Present Marketing Scenario

INTRODUCTION
History, Growth and Development of Automobile Industry
The process of the Automobile Industry is an index of
engineering skill, though the history of the industry can trained
back to the discovery of the wheel, the real revolution in
mechanical development is only 100 years.
The real development of Automobile industry in the World
stared in the late 18th century. But the development of Automobile
Industries in India has round phases. First step was taking in
importing cars. The first car was being imported in 1989. The
second step was in late 20 s of the present century when plant in
1928 to reassemble trucks and cars. In 1930-31 Ford Motor
Company India Limited established its assembly unit in Mumbai,
Calcutta and chennai. These companies imported components and
assemble there in India. At this stage the pioneer engineer Mr.
Vivverwraya pleaded for support to the indigenous of the cars,
the British Government, denied.
The third phase started with successful culmination of
Veichand Hirachands efforts after world war in collaboration
with Chryster in setting up Premier Automobiles in Mumbai.
Earlier in 1942, Riria had established Hindustan Motors in British
Corporations.

GROWTH
In 1980 the total production of cars with at least one or two
locally made components were at little over 2100. Today almost
all auto parts and components

required by the main

manufacturers about 60% are made by local authority, 75% of


which are in the small-scale sector with steady availability of raw
material like iron, steel, copper, aluminum, zinc, etc.
The process of indegnisation has been started with 1954 and
1968, this was for and final when India exported cars and jeeps to
12 countries.
DEVELOPMENTS
A number of new project most of them with foreign
collaboration are being developed in the automobile industry.
Maruti Udhyog Limited, a public sector undertaking has
started production of small cars and pick up vans. The company
entered into collaboration with Suzuki Motors Limited, Japan in
1985.
Similarly the two producers of cars PAC and Hindustan
Motors have collaboration with Holy and Vascrehail respectively.

Beside many firms have entered into foreign collaboration


for production of scooters and motorcycles. LML a local
company with the Vespa Company and Hero Cycle Limited made
collaboration with Honda Company of Japan.

History, Growth and Development of Hero Honda Limited


When any person in India moves from one place to another
place, he must be thinking of Bikes who make easy to move and
the Bike he think non other than Hero Honda. Today every person
with desire of Bike always thinks for the Hero Honda. It shows
the prosperity of Hero Honda Limited. To know about it we have
need to go in past.
It was the 50s and 60s when a unit engaged to produce
cycles with name of Hero Cycles Limited. Till 70s and 80s they
produced cycles, but in 1984 they made collaboration with Honda
Company of Japan and started producing motorcycles. In 1985
they introduced their first Bike in market since then they have
made very significant progress in producing Bikes and come out
as giants of Automobile in manufacturing motorcycles.

Historical Prospect of Hero Honda Limited

1984

Establishment of Hero Honda Limited (After


collaboration between Indias Hero Cycles

1985
1994

Limited and Japans Honda Company)


Introduced a first bike in motorcycle market.
Manufactured 3.5 Lacks motorcycles in a

1996

financial year.
Hero Honda captured 65% of market
particularly in Gujarat, and in whole India.
They got 55% of the market compared to other
auto companies.

Company Profile
1984

Entered in the motorcycle with the Hero

1985

Moped in Industry
On 1st February they launched Japanese

1989

collaboration 100 cc, CD-100


On 15th August, they launched HERO

1991

HONDA SLEEK
Introduced another nice model CD-100

1995

SS
Introduced the revolutionary new model

1997

HERO HONDA SPLENDOR


Introduced another fantastic four stroke
bike 100 cc motorcycle HERO HONDA

1999

STREET
Introduced with latest technology and

2000

designed bike HERO HONDA CBZ


Launched another nice model HERO

2001

HONDA DAWN
Introduced with attractive designed and
latest technology HERO HONDA

2002

PASSION
Introduced another powerful bike

2003

HERO HONDA AMBITION


Introduced another powerful bike
HERO HONDA ACHIEVER
&GLAMOUR

2004

Introduced the fantastic bike of the


century HERO HONDA KARIZMA
HERO HONDA SLPENDOR

PLUS

2005

HERO HONDA PAWSSION PLUS


Introduced another powerful bike

2006

HERO HONDA CD-DELUXE


Introduced another powerful bike
HERO HONDA PLEASURE
HERO HONDA CBZ X-TREME

History, Growth and Development of Perfect Auto Service


The foundation of Perfect Auto Service was in 1987. The
head quarter is in Ahmedabad and Head Office is in New Delhi.
As a dealer of Hero Honda, Perfect Auto Service has been
working since long time in Rajkot. The Perfect Auto Service
started for Mopeds & Bikes.
Honesty is the main principle of Perfect Auto Service and
they dont charge even a single rupee more than with the looking
and performance of the customers.
Today the Hero Honda offers an unbeatable range of
motorcycles to suit possible need by featuring the latest
technology of manufacturers of highest quality standards.

Project at a Glance
Name of the unit
Address of the unit

Perfect Auto Service


Perfect House,
Gondal Road, Vavdi,
Rajkot-360 004
(0281) 2382101-4
(0281) 2382105
20th september,2000
Consumable Durable
Suryakant Patel
Suryakant Patel
Mayurbhai Jala

Phone Number
Fax Number
Year of Establishment
Nature of Product
Name of Chairman
Name of M.D.
Name of Marketing

Manager
Area Office

In Gujarat,
Ahmedabad, Baroda, Rajkot,

Manufacturing Unit
General Manager
Sales Manager
Finance Manager
Human Resource
Manager

Surat
Haryana & Dhule
Ketan Oza
Sandeep Makadiya
Amee Bhalodiya
Sujay Nar

Changing Role of Marketing


Over the years, marketing has undergone a tremendous
change both in its role and function. Now concepts and patters of
thoughts have emerged pressures of keener competition have
force it to evolve new methods & techniques to deal with the
existing problems more efficiently.
Now a day, the firm takes up the responsibility of itself to
design, develop and sell its products to suit the needs of its
customers. The firms major innovative efforts are on entering the
size of the market in which it participates by introducing new
products and services by promoting new applicants for existing
products and by seeking out new customers who had not
purchased the companys products earlier also. They will have to
select from a growing variety of media in planning, how best to
communicate with customers.

Present Market Scenario


With the increase better standards of living increase
exposure through satellite television. The consumer durable
market has been its boom in the sales of consumer durable items,
middle class people goes on wide buying. Since the last few
years, today vehicle is becoming an important part of household.
Customer always prefer vehicle, which is smooth in riding, easy
though fast, and also suit to, his personality. This is the reason
why people prefer Hero Honda, all feature, which require by
customers, are in their product.
Scenario of Hero Honda
As Hero Honda has wide range of product, which suit best
to customer and this results in making companies reputation very
high and after all results in good profit.
If we see the market condition, we can find the market share
of Hero Honda in competition with other companies.

In Gujarat
Hero Honda
TVS Suzuki
Bajaj (Bikes)
Yamaha

63%
7%
18%
12%

70%
60%
50%
40%
30%
20%
10%
0%

Hero Honda
TVS Suzuki
Bajaj (Bikes)
Yamaha

Index

SR.

PARTICULARS

PAGE
NO.

1
2

Introduction
Product Mix Strategy
Product Line
List of Products
Features
After Sales Service

Price Mix Strategy


Pricing Objectives
Pricing Policy
Price Structure
Price List

Credit Terms
Promotion Mix Strategy
Introduction
Advertising
Sales promotion
Personal selling

Publicity
Place Mix Strategy
Selection of channel

Number of channel level


Market coverage
Transportation
Warehousing

Introduction
Marketing is the bridge that diminishes the gap between the
product and consumer. Without marketing a production activities
would have no meaning. Only production is not enough equally
to make consumer aware of produced product. If consumers are
aware of the product then sometimes view and ideas of the
consumers are taken into account that what type of product they
want, and on this basis product has to change according to
consumer needs. Thus the sum of total activities undertaken to
satisfy the consumer want and demands constitutes the activities
of marketing.
Marketing is comprehensive firm and it includes all
resources and a set of activities necessary to direct and facilitate
to direct the flow of goods and service from product to utility
consumer in the chain of distributing. In other words marketing
comprises of all the activities involved in the determination of
consumer needs at a profit. Thus marketing encompasses all
activities set exchange conducted by producers and middlemen in
commerce for the purpose of satisfying consumer demand.
In marketing planning, marketing information is used to
assess the situation specific marketing targets are selected in the
form of market segments for each seem but a combination of a
number of devices of marketing activities that are reach a

particular target segment is formulated. The combination of these


marketing methods of devices is known as the marketing mix.
Thus marketing mix is the set of marketing goals that the firm
used to pursue its marketing objectives in mix goals can be
classified as under the down head.
Product
Price
Promotion
Place

Product Line
Product line is a group of products that are closely related to
each other, because they satisfy the need of each class of people
and the price and reasonability same in each and every market.
In todays highly competitive market, multiplying human
needs and enlarging diversification, no company is content with
producing the single product only.
Hero Honda in this situation assumes a great significance on
product line and product mix. Hero Honda mixes different
models of Bikes. Their prices, colors, and capacity differ in
different bikes and mopeds. It require because every person has
not the same choice. Therefore to meet consumer requirement
Hero Honda establishes their product, which suit best for customers.
Product line manages need the types of information. First they must
know the sales and profit of each item in the line. Second they must know
their product line.

Product mix of Hero Honda


BIKES

MOPEDS

CD 100 DLX

Automatic

Sleek

Standard

CD 100 SS

Shakti 3g

Splendor

Turbo Sports

CBZ

Hero winner

Dawn
Passion
Ambition
Achiever
Glamour
Karizma

Product line of Hero Honda


CD 100 DLX
SLEEK
CD 100 SS
SPLENDOR

Red, Black
Red, Black
Red, Black
Black, Candy Ruby Red,

STREET
CBZ

Warakoram Gray, Green


Red, Black
Black, Tasmania Green, Tanitian

DAWN

Blue, Candy Blazing Red


Red, Black, Silver, Candy Blue

AMBITION

Blue Candy, Blazing Red,


Marroon, Moon Yellow, Myth

PASSION

Gold, Chill Green, Black


Candy Blazing Red, Blazing Blue,

ACHIEVER

Gray
Black, Candy Blazing Red, Candy
Tahitian Blue, Chilli Green
Metallic, Moon Yellow, Myth

GLAMOUR

Gold Metallic
Candy Blazing Red, Cloud Silver
Metallic, Tornado Grey Metallic,
Impulse Orange Metallic,
Excellent Blue Metallic, Vibrant
Green Metallic, Black, Forest Blue
Metallic, Palace Maroon Metallic

Features
The term feature refers to those interent characteristics of the
product, which makes it different and unique from the other products. In
other words, features means any special point differentiating that particular
from other product.
Features are characteristics that supplements the products basic
functioning. Most products can be offered with varying features. The
starting point is stripped down or bore version of the product. The
company concrete additional version by adding extra features. Each feature
has a change of capturing the dense of additional buyers.
Thus, features are the biggest competitive goals in the hands of
companies. Features make one companys product superior to other
companys similar product.

HERO HONDA CD 100 DLX


Main Features
Smooth kick start and toughest body
Phenomenal fuel efficient
Economical and easy to maintain
Nation arm with hydraulic jumpers
Technical Specification
Engine
Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension (Front)
Suspension (Rear)
Dimension (LxWxH)
Wheel Base
Ground Clearance
Dry Weight
Max Power
Max Speed
Full Tank Capacity

4 Strokes, Single Cylinder. Air Cooled


97.2 CC
Manual
4 speed constant mesh
Electronic
Kick starter
Telescopic Hydraulic fork
Swing arc with Hydraulic Jumpers
1885 x 770 x 1060 mm
1210 mm
135 mm
95 kg.
7.0 PS 8000 RPM
85 kmph
10.1 ltr (1.3 ltr. Reserve)

HERO HONDA CD 100 SS


Main Features
Big and powerful shock absorber
Wide wheel
Weightful Body
Engine Guard
Technical Specifications
Engine

4 Strokes, Single Cylinder, Air

Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension (Front)
Suspension (Rear)
Dimensions (L x W x H)
Wheel base
Ground clearance
Dry weight
Max power
Max speed
Full tank capacity

Cooled
97.2 CC
Manual
4 Speed constant mesh
Electronic
Kick Starter
Telescopic Hydraulic fork
Swing arc with Hydraulic Jumpers
1960 x 730 x 1050 mm
1210 mm
165 mm
103 mm
7.0 PS 8000 RPM
85 kmph
10.1 ltr. (1.3 ltr. Reserve)

HERO HONDA SLEEK


Main Features
Comfortable shape and design of seat

Strong body and machine


Large capacity of fuel
Easy kick start
Technical Specification
Engine

4 Strokes, Single Cylinder, Air

Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension (Front)
Suspension (Rear)
Dimension (L x W x H)
Wheel base
Ground clearance
Dry weight
Max power
Max speed
Full tank capacity

Cooled
97.2 CC
Manual
4 Speed constant mesh
Electronic
Kick starter
Telescopic Hydraulic fork
Swing arc with Hydraulic Jumpers
1965 x 730 x 1060 mm.
1210 mm.
165 mm
100 kg
7.0 PS 8000 RPM
85 kmph
10.3 ltr. (1.4 ltr. Reserve)

HERO HONDA SPLENDOR


Main Features
Toughest body and double kredol tabular
Extra strong engine guard
Beautiful looking
Kick start to avoid pedaling and pushing
Nice headlight with beautiful guard

Technical Specification
Engine
Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension (Front)
Suspension (Rear)
Dimensions (L x W x H)
Wheel base
Ground clearance
Dry weight
Max power
Max speed
Full tank capacity

4 Strokes, Single Cylinder, Air Cooled


97.2 CC
Manual
4 Speed constant mesh
Electronic
Kick starter
Telescopic Hydraulic fork
Swing arc with Hydraulic Jumpers
1950 x 720 x 1040 mm
1230 mm
159 mm
100.3 mm
7.0 PS 8000 RPM
90 kmph
10.5 ltr. (1.4 ltr. Reserve)

HERO HONDA STREET


Main Features
A unique in built City Clutch
Rotary gears
Automatic decompression
Easy to ride in traffic and great pick up
Technical Specification
Engine

4 Strokes, Single Cylinder, Air

Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension (Front)
Suspension (Rear)
Dimensions (L x W x H)
Wheel base
Ground clearance
Dry weight
Max power
Max speed
Full tank capacity

Cooled
97.2 CC
Manual
4 Speed constant mesh
Electronic
Kick starter
Telescopic Hydraulic fork
Swing arc with Hydraulic Jumpers
1882 x 665 x 1044 mm
1205 mm
133 mm
92.8 kg
6.8 PS 8000 RPM
84kmph
3.5 ltr

HERO HONDA CBZ


Main Features
TPFC system (Transit Power Fuel Control)
Air injection system
Dynamic powers
Zero crank case evaporative emission
Trapezoidal head light
Muscular fuel tank
Technical Specification
Displacement
Power
Torque
Acceleration
Bore x Stroke
Compression Ratio
Type of Brakes (Front)

156.8 CC
12.8 PS @ 8000 rpm
1.26 kg. M. @ 6500 rpm
0.60 kmph in 5 seconds
63.5 mm X 49.5 mm
8.5 : 1
Drum version (130 mm diameter)

Type of Brakes (Rear)


Type of Engine

Optional : Disc version


Drum (130 mm diameter)
4 Strokes, Single Cylinder, Air

Full tank capacity

Cooled
12.5 ltr. (2.0 ltr. Reserve)

HERO HONDA DAWN


Main Features
Wide wheel
Weightful body
Engine guard
Nation arm with hydraulic dumpers
Technical Specification
Engine

4 Strokes, Single Cylinder, Air

Displacement
Clutch Type
Transmission
Ignition
Starting
Suspension
Dimensions (L x W x H)
Wheel base
Ground clearance
Dry weight
Max power
Max speed
Full tank capacity

Cooled
97.2 CC
Manual
4 Speed constant mesh
C.D.J.
Kick starter
Telescopic Hydraulic fork
1980 X 720 X 1040 mm
1230 mm
160 mm
103 mm
7.4 PS 8000 RPM
85 kmph
10.5 ltr. (1.8 ltr. Reserve)

HERO HONDA PASSION


Main Features
Big and powerful shock absorber
Wide wheel
Weightful body
Nation arm with hydraulic jumpers
Wide and safety sheet
Helmet holder
Technical Specification
Engine

4 Strokes Single Cylinder, Air

Displacement
Max power
Gear Box
Clutch
Max speed
Suspension
Tyre (Front)
Tyre (Rear)
Final drive
Fuel tank capacity
Ignition
Starting
Wheel base
Ground clearance
Length
Width
Height
Kerb weight

Cooled
97.2 CC
7.5 PS, 8000 RPM
4 speed constant mesh
Multi-plate wet type
85kmph
Telescopic hydraulic front fork
2.75 X 18 X 4 PR
3.00 X 18 X 4/6 PR
Roller chain
12.8 ltr. (1.7 ltr. Reserve)
Electronic CDJ
Kick starter
1235 mm
159 mm
1980 mm
720 mm
1060 mm
116 kg

HERO HONDA AMBITION


Main Features
133 cc engine
Extra strong engine guard
Beautiful looking
Nice headlight with beautiful guard
Technical Specification
Engine

4 Strokes, Single Cylinder, Air

Displacement
Max power
Gear Box
Clutch
Max speed
Acceleration
Suspension
Final drive
Battery

cooled
133 cc
17.0 BHP @ 8000 RPM
5 speed constant mesh
Multi-plate wet type
100 kmph
0 to 60 kmph in 6 seconds
Telescopic hydraulic front fork
Roller chain
12V-2.5AH (Kick start)

Starting
Wheel base
Ground clearance
Length
Width
Height
Kerb weight

12V-5AH (Self start)


Digital CDJ system
1285 mm
150 mm
2030 mm
760 mm
1100 mm
126.5 kg (Kick start)

Fuel tank capacity

130 kg (Self start)


12.5 ltr.

After Sales Services


Services are activities, benefits or satisfaction that are offered after
sales. In other words, a service is any act or performance that one party can
offer to another that is essentially intangible and does not result in the
ownership of anything.
Firms that provide high quality services undoubtfully perform their
best services e.g. the manufacturers could make an arrangement with
distributors and dealers to provide these services. Thus the customers
durable market is highly competitive in terms of after sales services.
Sometimes its happen that the company increases a high cost burden in
terms of after sales services. But the company inspite of its cost burden
benefits in long run. Thus, companies prefer to incur high cost rather than
losing their potential customers.
Thus, after sales service is important part for any company to sustain
in todays competitive market. It is the device to pursue customer and earn
huge reputation.
Hero Honda has an extensive dealer network and age staff that can
reach to obey customers at any time. Hero Honda servicing centers are also
in the form of authorized dealers. The Hero Honda also offers service
coupon for the service of various Bikes. Generally they give 3 services in
all motorcycles but in the new model like Street, Splendor and the newest
CBZ, they provide more than 3 services.

Sometimes they also arrange such a campaign in which their


customer can service their Bikes totally free & if any parts require they
provide at a discount.

PRICING OBJECTIVES
For any business activity is performed properly, its objective must be
determined. Pricing is not possible unless a definite objective is clearly
defined. Though it is difficult to know the subject, which manufacturers
keep in mind while fixing prices of their product?
Survival
Companies pursue survival as their main objectives if planned with
other companys interest, competition or changing customers behaviour to
keel the plant going and the inventories turning over the carry out.
Maximum current profit
Many companies try to set the prices that win maximum current
profit. They estimate the demand and costs associated with alternative
price and choose the price and that produce the maximum profit and cash
flow or rules of return on investment.
Current revenue
Some companies set a price to earn maximum sales revenue.
Revenue maximization enquires only estimating the demand function.
Many managers believe that revenue maximization will lead to long run
maximization.
Maximum sales growth
Other companies want to maximize unit sales. They believe that
higher sales volume lead to lower unit cost and higher long run profit.
They set the lowest price assuming a market price is sensitive.

Maximum market skimming


Many companies setting its prices to skim the market. The
company sets that price that makes it just worthwhile for some segments of
the market to adopt the new material.

The Pricing Objectives of Hero Honda Limited


Price stability
Hero Honda is one of the companies in Bikes and Mopeds market in
India, which call for long-term interest of the business and aim at a price
stability. This attempt is not to let price fall low during depression and rise
to high during boom.
To increase market share
The main objective of Hero Honda Limited is to get maximum
market share in scooter market, so they have to set their prices at definite
level by which they can increase their market share.
To meet competition
Hero Honda has adopted such a price policy that helps the company
to meet the competition in the market successfully.

PRICING POLICY
Pricing policy is the standing answer of the firm to require problem
of pricing. It provides guidelines to Marketing manager to solve
appropriate pricing decision. If competition is mainly on price basis then
each marketer generally prices their product at the same time to level their
competition.
In present era, most of the companies adopt a way to take reasonable
price on its product and capture the market. Thus in present era, companies
have no more interest in maximum profit but in capturing the market. As
we know that the bikes and mopeds of Hero Honda Limited are available
at reasonable price and greater style.
Hero Honda Limited itself sets up the prices of bikes and moped. We
can see in the below chart that Central Sales Tax, Gujarat Sales Tax, etc.
should be paid according to the rules and regulations of the government.

Price Structure

Particulars
Factory price

Amount (Rs.)
--------------

Add: Forwarding, Handling & looking charges


Balance
Add: Central Excise Duty
Add: Freight Charges
Net Dealer Price
Add: Commission
Retail Price
Add: Rajkot Municipal Corporation Entry Tax
Add: Gujarat Sales Tax (4%)
Ex-show Room Price
Add: RTO Tax
Add: Insurance & Accessories
On Road Price

--------------------------------------------------------------------------------------------------------------------------------------------------------------------

PRICE LIST
Any company, which adopts the dealer-retailer channel of
distribution, has to be very careful while formulating its pricing
objectives and pricing policies. Thus, companies circulate price
lists periodically in order to make the dealers, retailer and

customer aware of the price of a product is to be sold. The price


at which the product is to be sold is usually printed on the
package.
The prices of every company are revised and reprinted from
time to time depending on the changes in the pricing policies, tax
rates, etc. of the government. The pricing policies of the company
also changes with technology used by the company, change in the
price objectives of the company, change in the management
strategy of the company and various other changes that affect the
price of the product manufactured by the company.
Price list form an integral part of the framework of the
company. They are a proof to the companys pricing policy. To
the company it is a statement, which indirectly shows the future
profit. No dealer or retailer can charge a price, which is above the
maximum price set by the company. It is matter of pricing policy
of the top management to decide how and when it incorporates
price changes and revises the price list.

CREDIT TERMS
Credit terms refer to the rules & regulations in the form of an
agreement between the producers and the customers in relation to the
credit facility, which the producer gives to their customers. In other words
creditors are the terms and condition, which are mutually agreed upon by
the customers and producers and related to the benefits, which will provide
to other party.
Depending on the policy of the management of the company, credit
terms may remain the same from customer to customer and it may be
different for customer and for dealer or distributor. It also depends on how
good relation is between the producer and customer. Credit terms may also
change when the policy of the company changes over a period of time. It is
a basic fact that each company has to give a short or long term of credit
facilities if it wants to survive in the market and in cutthroat competition. If
a company does not give credit facilities, the customer turns to its
competitors product in costlier. This credit facility is a must for all
companies in order to survive.
The credit terms of Hero Honda Limited are fairly straightforward.
The credit period allowed to the dealers is 60 days the company also takes
a deposit from distributors against the dealership allotted to them.

INTRODUCTION TO PROMOTION MIX


It is unanimously accepted that Nothing happens until somebody
promotes something. You may have the best product, price of purchase
but even though people will not buy your product, if they havent come
across it and simply aware of its existence. The marketer must
communicate their prospective buyers and provide them adequate
information regarding product. The main job of promotion in marketing
mix decision is Right product must be available in right time and at right
price.
Broadly speaking, promotion means to push forward or to advance
in ideas in such a way as gain in acceptance and approved promotion is
any communication activity whose main objective is to move forward a
product, service or idea in any channel of distribution. It is an effort by a
recommended use of the articles, service or idea, which is being promoted.
Promotion is a form of communication with an additional element of
persuasion. The promotion activity always attempts to affect ideas,
products, services, etc. is the heart of promotion.
Modern marketing causes for more than developing a good product,
pricing attract lively and making it accusable to target customers company
must also communicate with their present and potential customers. Every
company directly to indirectly plays the role of communication and
promotion. To communicate effectively companies hire advertising
agencies to develop effective advertisements, sales promotion specialist to
design sales incentives program and public relations firms to develop

corporate image. They train their salesman to be friendly and


knowledgeable. For most companies the question is not whether to
communicate but rather what to say to whom and how often.
A modern company manages a complex marketing communication
system. The company communicated with its middleman, consumer and
various publics. The marketer must communicate to its prospective buyers
and provide them adequate information in a persuasive language. The
people must know that the right product is available at the right place.
Sales will not take place automatically without promotion or marketing
communication even though the product is of the best quality. It is an
important marketing strategy and fulfills the marketers to communicate
with the customers.
Essentially promotion is persuasive communication to inform the
prospective customers is responsible for walking and stimulate demand,
capture demand, from rivals and maintain demand for the product even
against keen competition.
Marketing have adopted a communication view of the firms
promotional activities receives is not regarded as an active caution.
Promotion includes the following:
Advertising
Sales Promotion
Personal Selling
Publicity

ADVERTISING
We can define advertising as any form of non-personal presentation
of ideas, goods or services by an identified sponsor. Advertising is the most
important tool of promotion. There will be hardly any field of business in
which advertising is not used for scores expansion, it is not exaggeration,
and we say that modern age is the age of advertise. It is the foundation of
modern trade and industry.
Advertising is one of the most common tools the company uses to
direct persuasive communication to target buyers and public. We may
define advertising as:
Advertising is any paid form of non personal presentation and
promotion of ideas, goods or services by an identified sponsor.
From above discussion, we can say that each & every company,
whether public or private has to advertise for its survival. Hero Honda
Limited has also undertaken the advertising programme to promote the
sales because it knows that advertising has the following strength.
It offers planned and controlled stage.
It can contact and influence number of people simultaneously
quickly and at a low cost per prospect.
It can reach prospect that cant be approached by salesman.
It can be very useful to create maximum interest and offer adequate
knowledge.

OBJECTIVES OF ADVERTISING
The first step in developing an advertising programme is to see the
advertising objectives. According to Hero Honda Limited those objectives
must flow from decision on the target markets, market positioning and
marketing mix. The Hero Honda Limited has undertaken the activity of
advertising with a view to attain the following objectives:
To Inform
Telling the market about new feature of product.
Suggesting new uses for a product.
Informing the market of a price change.
Explaining how the product works.
Describes available services.
Correcting false impression
Building a company image.
To Persuade
Building brand preference
Changing buyers perception of product attributes
Persuading buyers to purchase
Persuading buyers to receive a sales call
To Reminding
Reminding buyers that the product may be needed in near future.
Reminding buyers where to buy it.
Keeping in mind during off-season
Maintaining its top-of-mind awareness.

MEDIA OF ADVERTISING
The term media is a phrasal form of medium. In advertising term
medium is a channel of communication such as TV, Newspapers, Radio,
etc. A media is a vehicle for carrying the sales message of an advertiser to
the prospects. It is needed a vehicle by which advertiser convey their ad in
reducing gap in between products at one hand and consumer at other.
The sales media depends upon various features such as:
The financial allocation for advertising.
The nature of product and the demand for it.
The nature of competition and the extent of coverage require.
Cost of media, co-operation and the promotional aids offers media
circulation.
Right media of advertising will enable the advertiser to deliver the
message effectively to the intended market or prospect. The different type
of media can be analyzed as under.

Media of Advertising
Press

Broadcast

Outdoor

Direct

Transit

Media
Newspaper

Media
Radio

Media
Posters

Media
Circular

Media
Bus

Television

Wall

Letter
Catalogue

Car

Film

Painting
Sky

Price list

Trains

Personal

Airplanes

Magazine
Trade
Journals

Advertising
Screen slide Electric
Display

Letter

Hoardings
Hero Honda Limited, generally uses mostly press media, broadcast
media, out door media and sometimes transit media for their
advertisement. As Hero Honda Limited is a giant group in manufacturing
Bikes and Mopeds they are taking due care for advertisement of their
products.
They are giving their advertisements regularly in all media they are
using for advertisement; following are some medias in which they
advertise.

Newspapers
Newspaper is the best media for advertisement of any product or
service. Through newspaper, the message of any producer can reach to
each & every person.
Hero Honda Limited has selected newspaper as its media of
advertising because it is the most effective media. It has general & wide
appeal. They are flexible periodical change in size and contents are also
easy. At local level they are using different newspapers in different cities.
(Sandesh & Gujarat Samachar for Rajkot City)
City
Mumbai
Delhi
Calcutta
Chennai
Ahmedabad
Bangalore
Hyderabad
Lucknow
Pune
Baroda

Newspaper
Times Of India
Hindustan Times
Telegraph
Hindustan Times
Times Of India
Deccan Herrid
Deccan Cromic
Times Of India
Indian Express
Indian Express

Magazines
Magazines are considered to be the most effective media through its
coloured attractiveness. Magazines have largest life and greater value
reference value. Further they are using magazines for advertisement
because selective appeal is possible through it. The magazines have most
circulation form.
Hero Honda Limited is also giving regular advertisement in
magazines. They use special magazine for bikes.
For Motorcycles

Sports Star
Cricket Samrat

For Mopeds

Sports World
Chitralekha
Abhiyan etc.

Television
In the last 2 to 3 decades, the television network has developed and
grown tremendously. In India there are hundreds of television stations,
which relay the programme through Doordarshan. Apart from this, there
are other channels also like Star, Zee, Sony, etc., which provide their best
programmes. This has been proved to be an ideal medium for
entertainment and information transfer. Now-a-day sponsored programme
are very common on television. Television is high frequency media with an
immediate impact.
Hero Honda Limited is using television as important media. They
advertise their product Zee TV, Doordarshan, Sony & other popular
channels before popular programme or between programmes, so that they
can attract more customers.
Virendra Utpal (Marketing Manager) is giving more importance to
television advertisement because it can appeal through ear as well as eyes
and can be demonstrated with explanation. It reaches the guidance of
almost like personal salesmanship. Thus, it is really wonderful mean of
communication for creative marketing.

Advertisement Campaign of Hero Honda on Television.


Hero Honda Womens World Cup
Hero Honda Limited was official sponsor of World Cup Cricket
1999, England
Hero Honda Limited always arranges and sponsors the one-day
international cricket match series.

SALES PROMOTION
Sales promotion is an important instrument to lubricate the
marketing efforts. Today sales promotion is new and not merely a luxury or
a fashion. It is an integral part of marketing efforts. Sales promotion is
entered to activities, other than salesmanship, advertisement and publicity,
which stimulate consumers purchasing and dealer effectiveness. It consists
of diverse collection of invoice tools mostly short-term designed to
structure quicker and greater purchase of particular products by consumer
or sealers. In short where advertising offers reason to buy, sales promotion
offers incentives to buy.
Tools for sales promotion
Many sales promotional tools are available to accomplish sales
promotion objectives. The planner should take into account the type of
market, sales promotion objectives, and competition and cost effectiveness
of each tool.
Following are the main sales promotional tools:
Consumer promotion
Trade promotion
Sales force promotion.

PERSONAL SELLING
Personal selling is the process of including and excluding a perceive
buyer to note a commodity services or to favorable upon an idea that this
commercial significance with the seller. Personal selling is highly
distinctive and the only form of personal selling involving face to face
relationship or communication between sales person and one or more
prospective customers.
Now-a-day, personal selling is increased in the consumer durable
market. But so far as Hero Honda Limited is concerned, they are not
performing personal selling regularly and continuously. However, they are
practicing when any new model of Bike or Moped is to be introduced in
the market.

PUBLICITY
Publicity is a non-personal stimulation of demand for a product,
service or a business unit. By placing commercial significant news about it
in a publication or obtaining favorable presentation of it on Radio, TV or
Magazine that is not paid by the media sponsor.
For Hero Honda Limited, publicity is one of the promotion mix,
which cannot be ignored in any case. Till today many articles regarding the
company is published in local magazines such as Abhiyan and
chitralekha, etc. Through publicity of its company Hero Honda Limited
has created own goodwill in market.

INTRODUCTION
More production of commodity is not enough but is must reach to
the right man at right time and at right place. In marketing point of view
place mix strategy is the 4th important P or important element of the
marketing mix strategy. It has 2 sub divisions.
Channel of Distribution
Physical Distribution
Channel of Distribution
Channel of distribution is the best marketing institution participating
in the marketing activities involved in the movement or the flow of goods
or services from the primary producer to the ultimate customer. In the field
of marketing the channel of distribution indicates routes in pathway
through which goods and services flow or move from producer to
consumer.
Physical Distribution
Physical distribution consists of marketing activities related to the
physical looking of goods such as protective packaging; order processing,
inventory management, transportation and warehousing.
If you build a better mousetrap, the world will heat your door. But
too often the customers must have the delivery of that better mousetrap at
the right place, at the right time and at right quantity. The physical
distribution function use other half of marketing is responsible for
completing the marketing transaction.

INDEX
SR

PARTICULARS

1
2
3
4
5
6
7
8

Introduction & Importance of H.R.M.


Organization chart
No. of employees
Manpower planning
Recruitment & selection
Training & development
Promotion & transfer
Extra facilities

PAGE
NO.

Introduction & Important Of HRM


Organized were in the society started much better the
industrial required and establishment of industrial organization. The
Egyptians, arrives, Mughals had created monuments like pyramids
of Egypt, Cathedrae of Milan, St. Pauls in London St. Peters in
Rome, Taj Mahal in India. These monuments were built using
management techniques and tools. These are example of organized
work. However the factory which is a productive system where
organized work activity take place started in the middle of
seventeenth Century. In the factory system a large scale
employment takes place, employing manpower and capital
EDWARD PHILIPPO says that

Personnel management is planning organization directing


and controlling of the procurement development, compensative in
integration, maintenance and separation of human resources to the
end that individual organizational and social objective are
accomplished.
The importance of human resource management can be
discussed after Yoddr, Heneman and other from three standpoints,
i.e. social professional are individual enterprise.

No. Of Employees
Hero Honda is a one of the most popular assembling and
consumerable company. So they have large no. of employees. But
Perfect Auto Service is only the consumerable company which is
provide the service of vehicles. So, it has some less number of
employers as compared to large company. Following are the list of
the employers.

TYPES
Officers
Clerks
Head of department
Managing director
General Manager
Workers

NO. OF
EMPLOYEES
5
10
5
1
1
66
88

Manpower Planning
Manpower or Human resources may be through of as the
total knowledge skills creative abilities talents and aptitudes of an
Organizations were force, as well as the value, attitudes and
benefits of an individual involves. It is the sum total of inherent
ability acquired knowledge and sill represented by the talents and
aptitudes of the employed persons.
The manpower planning of the company is at far with the
global situation. The importance of manpower planning cannot be
neglected. In words of directors of the company:
Manpower planning is the most important function in
management and hence we have to plan according and frame out
future policy according.
We plan the manpower on basis of past records, forecasting,
ability, skill, knowledge, talent, experience and efficiency. Then we
go for the final selection of the employee. Following are the some
step of manpower planning.
Hero Honda and Perfect Auto know about objectives of the
firm. So they are planning considering the objective of organization.
The firm also plan about the manpower considering the capital
oriented at labour oriented production.

Recruitment & Selection

RECRUITMENT

Recruitment terms the first stage in the process which


continues with selection and ceases with the placement of the
candidate. It is the next step in the procurement function, the first
being the manpower planning recruiting means it possible to acquire
the necessary to ensure the continued operation of the organization.
Recruiting is the discovering of potential applicants for actual or
anticipator organizational vacancies. In other words it is a linking
activates bringing together those with jobs and those seeking jobs.
When Hero Honda Co. Ltd. was a more required for the labour
but it has a skillful person, technical person. So, company first
decided manpower planning, and after they give the advertisement
in new papers and after they call for interview.

SELECTION

Selection procedure is a complex procedure. It depends on


the requirements. For higher level selection procedure is different
than lower level candidates. It is long tedious and complex at higher
level. It is so because the firms future depends on top level people.
Naturally contribution of the lower level employees is than higher
level employees. It is possible that more than one candidate may be
available for one post, but the selection is done for the best one
only.
In Perfect Auto Services selection of an employee at bottom
level is simple but in case of officers and manager they have
to travel through certain procedures,
1)
2)
3)
4)

Application Form
Interview
It passed in interview then some practical tests
are taken by head of department
Final selection

Training & Development


Nobody in the world is perfect perfection can be achieved by
training. The hidden qualifies of the man should be brought out and
utilized.
Training is the organized procedure in which people learn
knowledge and skill required for a definite purpose.
-Dale s. Beach
Development means to what company do for workers,
manager, employees, departments inspiration and to go in higher
stage is called development. When company does for this not only
for man but also require.
Perfect Auto Services is new generation industry. It believed in
training & development. So when company recruits any employees,
first company give the training. After 2-3 year company give the
training to the supervisor, manager. In this way company give more
importance to the training development.

Promotion & Transfer


Promotion is an instrument by which an employer can make
the employee, union happy and also get his work done smoothly. It
also pays an important role in up liftmen of the organization. It is
given on the basis of seniority as well as performance.
Promotion is the transfer of an employee to a job which pays
more money or which carries some preferred status.
Perfect Auto Service believed in the concept. The manager, of
this company says that we are give the promotion on experience,
work and skill and added that he say he is give the promotion after 3
to 5 years.
Transfer is a horizontal or lateral movement of an employee
from one job, section, department, shift, plant or position to another
at the same or another place where his salary, status and
responsibility are the same.
In Perfect Auto Service according to manage he give the
transfer carries because of his work, nature and communication. But
the added that sometimes, he give the transfer order because of till
up the space of work, his skill and ability.

Extra Facility
Extra facility means company gives extra facility with his work
Perfect Auto Service gives canteen facility in which whole time of
work employees get a snake, drink, lunch etc. Company also give
one pair Dress, Shoes, Cap etc. to the employees.
In this way company satisfy his employees and fulfill his
demand.

Introduction & Importance Of Financial


Management
The scope of financial management, that is, the views about
finance function have undergone remarkable changes over time. Till
1950, finance function was regarded as the function only of raising
finance for business, and consequently the discussion centered
round different sources of finance. Financial institutions and
financial documents etc. since last 30-40 years, however an
effective and efficient utilization of finance has also been considered
as an important function of financial management.
Needles to say that without adequate finance, no business
can succeed. It is easy to imagine the plight of the management
which due to insufficiency of finance cannot make payment for raw
materials and wages on time. It is not possible to avail of the
opportunities it adequate finance is not available.
According to soloman, Financial management is concerned
with the efficient use of an important economic resource namely,
capital funds.

Organization Chart of Finance

Finance manager

Accountants

Computer Operator

Financial planning
A firm needs to manage its resources effectively and efficiently
to achieve its objectives. The managing of resources in an effective
manager is possible only, when the management way out the future
courses of action in advance and takes decision in a professional
manner utilizing the individual and group effects in co-ordinate and
rational manner.
According to koontz & ODonnell, planning is a management
function involving from among alternatives, selection of the
enterprise objectives, policies, procedures & programs.
Perfect Auto Services is a Private Limited company. Its main
goal is to more and more profit. So, company prepared the financial
planning with the help of last years P&L a/c. And balance sheets
and cash flow of t he company. Following are the financial matter of
Hero Honda Co. Ltd.

Capitalization
Capitalization indicate plan of share capital, debenture capital
& the face value of other long term obligation short term loans or
temporary bank loans are usually excluded from the capitalization
Capitalization = ownership capital + long term loan
Perfect Auto Service dont issued share unit is carry on by
own capital only and loan from bank. As per comparatively balance
sheet of the company,
Owners fund

= 86.79 %

Long term loan =

13.21%
100%

Fixed & Working Capital


Fixed capital means a capital which value is fixed and
company calculate the depreciation on the fixed capital. Ex-Building,
plant & machinery, goodwill, patent trademarks.
Working capital means a capital which value is not fixed and
the value is change day to day in market. Example for working
capital is closing stock, debtors, Bills Receivable cash bank
balance, loan & advances etc
As per common size balance sheet of company
Fixed Assets
Current Assets
Investment
Deferred Tax Assets

=
=
=
=

24.48 %
21.18 %
53.18 %
0.03

Capital in work in progress =

1.13%
100%

Balance Sheet
(Common size statement)

Particulars

Schedule
No.

As at
March
31, 2006
(%)

As at
March
31,2005
(%)

* Sources of funds
* Owners fund

1.73

2.22

* Reserve & Supplier

85.06

80.90

* Loan funds

8.02

11.23

* Deferred Tax liabilities

5.19

5.65

100

100

* Application of funds
* Fixed Assets

42.91

30.89

* Investment

25.01

28.23

32.02

40.85

0.06

0.03

* Working Capital

*Deferred Tax Assets

100

Profit & Loss A/C.


(Common size statement)

Particulars

31-32006
(%)

31-3-05
(%)

* Income
Sales

98.24 %

98.19

1.76

1.81

100%

100%

82.86

82.73

1.29

1.18

84.15

83.19

15.85

16.81

Interest & tax

5.55

5.88

Net Profit (EAIT)

10.30

10.93

+ Other Income

Loss (Expenditure)
Manufacturing & other expenditure
Depreciation

Net Profit (EBIT)

Ratio Analysis
(All the figures are based on common side P&L a/c. Balance Sheet)
1)

Net Profit Ratio


Net Profit Ratio =
=

Net profit
100
Sales
10.30
100
98.24

Net Profit Ratio = 10.48 %


2)

Expenses Ratio
Expenses Raito=
=
Expenses capital

3)

Expenses
100
Sales
84.15
100
98.24

= 85.66 %

Operating Ratio
Operating Ratio

= 100 Net Profit Ratio


= 100 10:48
= 89.52

4)

Current Ratio
Current Ratio

Current Ratio
5)

Debt. Equity Ratio

Current assets
Current liabilitit es

35.45
67.49

= 0.53

Debt
owner ' s fund

Debt Equity Ratio =


=

13.21
100
86.79

Debt Equity Ratio


6)

15.22 %

Fixed Assets turnover Ratio

Fixed assets turnover Ratio=


=

Sales
Fixed assets

98.24
42.91

= 2.29 : 1
7)

Owners Ratio
Owners Ratio =
=

Owner ' s fund


100
total assets

1.73
100
74.93

= 2.31 %

Index

SR.
1

PARTICULARS
Meaning & Importance of Marketing

2
3
4

Research
Objectives of Marketing Research
Scope of Marketing Research
Marketing Research Process

PAGE NO.

Meaning & Importance of Marketing Research

Mostly marketing research involves studies related to buyer


behavior, brand preference product or brand usage, advertising awareness,
sales promotion, physical distribution, dealer behavior, competition & so
on. The simple meaning of research is that it is the process of gathering,
recording & analyzing of critical & relevant facts about any branch of
human activity. It indicates critical & searching study and scientific
investigation of problem, a proposed course of action hypothesis or a
theory while marketing research is the systematic gathering, recording &
analysis of data about problem connected with market product, price,
promotion & destination. It is connected with all those factors, which have
a direct impact on the marketing of products and services. Marketing
research is a process of manufacturers like what to produce? How to
produce? When to produce? It works as the bridge between producers &
consumers.
The marketing research is directly interested in offering sound
alternative solution to marketing problem relating to exchange of goods
and services from producer to consumer. Beginning and end of marketing
management is marketing research. In a dynamic economy, marketing
research acts as the investigate arm of marketing manager. As now a day
are competitive in nature and so many competition comes in to a market so
with the help of marketing research both the aim the information regarding
customer demand and new competitors can be obtained immediately and
best action can be taken.

Objectives of Marketing Research

An objective is precondition of any work. To determine the


objectives is the 1st step in the planning process. Once the objectives are
determined the way are easily found out. Objectives are guidelines for
completing the work. The principle of objective is the study to know the
attitude, preference and buying behavior of consumer, which never remains
constant over a time period. Following are the major objectives of this
study.
To know consumer awareness about various models of Hero Honda
Limited.
To know perceptions and preference of customers regarding various
model.
To know consumer satisfaction regarding product and brand.
To know media of advertising adopted by dealers.
To study tools of publicity adopted by dealers.
To study factors, which plays important role in increasing sales of
Hero Honda Limited.

Scope of Marketing Research

The scope of study was to understand the thinking of consumer


toward Hero Honda Limited. How do they react to the comfort and
convenience gives? How much they are satisfied against their buying
decision? Which factors motivated them to make decision of purchasing
Hero Honda? Thus the scope can be specifically highlighted as below
mentioned.
To pinpoint the features, which persuade and influence the buying
decision of purchasing Hero Honda
To find out their satisfaction in accordance with their paying value
What is the problem of Hero Honda in the minds of consumer?
It also includes the income analysis and present Hero Honda
Holders
Study of different influence & attributes.

Marketing Research Process

Marketing research formally studies the specific problem and


opportunities. They may request a market survey, a product preference test,
a sales forecast by region or research on advertising effectiveness.
Marketing research is the systematic design, collection, analysis and
reporting of data and findings relevant to a specific marketing research.
Facing the co-effective
Marketing research involves 5 steps
Define the problem
Develop the research plan
Collect the information
Analyze the information
Present the findings

Present the findings


(1) Analysis regarding the occupation

This question was asked to know the occupation of consumer.


Occupation is directly related with the vehicle of the consumer. As per
survey of 100 samples analysis is as under.
Sr.
1
2
3
4

Occupation

No. of

Businessman
Students
Serviceman
Professional

Respondents
25
46
15
14

50
45
40
35
30
25
20
15
10
5
0

Percentage
25%
46%
15%
14%

Businessman
Students
Serviceman
Professional

No. of
Respondents

From above survey, we can derive that out of 100 samples, 25 are
businessman, 46 are students, 15 are serviceman and 14 are professionals.
It means that 25% of businessman are using Hero Honda, 46% of students
are using Hero Honda, 15% of serviceman & 14% of professionals are
using Hero Honda. It means mostly students are preferring Hero Honda
Bikes.

(2) Analysis regarding age group


This question was asked to know the age of users. It means that
which group of age mostly uses the Hero Honda Bikes. As per my survey
the position is as under.
Sr.
1
2
3
4

Age group

No. of

Percentage

18 to 20
20 to 30
30 to 40
More than 40

Respondents
45
43
9
3

45%
43%
9%
3%

45
40
35
30
25
20
15
10
5
0

18 to 20
20 to 30
30 to 40
More than 40

No. of
Respondents

From above information, we can conclude that out of 100 samples.


Users of age group 18 to 20 are 45, between 20 to 30 are 43, between 30 to
40 are 9 and age group of more than 40 are 3. So from the chart we can say
that 45% of users are 18 to 20 age group, 43% are from 20 to 30 age group,
9% are from 30 to 40 age group.

(3) Analysis regarding income


The question Ws asked to know the income of users of Hero Honda
Sr.
1
2
3
4

Income

No. of

Percentage

5000 to 10000
10000 to 15000
15000 to 20000
More than 20000

Respondents
48
37
9
6

48%
37%
9%
6%

50
40

5000 to 10000

30

10000 to 15000

20
10
0
No. of
Respondents

15000 to 20000
More than
20000

As per survey of samples, we can derive that income group of 5000


to 10000 per month are main users of this Bikes. Out of 100 samples are
from 5000 to 10000 income, 37 are from 10000 to 15000. So the income
group of 5000 to 10000 is 48% & income group of 10000 to 15000 are
37%.

(4) Analysis regarding whose opinion value must while purchasing a


bike
The question was asked to know that whose opinion value must
while consumer purchase a bike.
Sr.
1
2
3
4

Opinion

No. of

Percentage

Family members
Relatives
Friends
Personal views

Respondents
24
11
25
37

24%
11%
25%
37%

40
35
Family
members

30
25

Relatives

20
15

Friends

10
Personal views

5
0

No. of
Respondents

According to above results we can derive that the personal views


play the most important role at the time of purchasing Hero Honda.
According to results 37% have purchased bike on their views, 24% & 28%
have family members view and friends opinion.

(5) Analysis regarding features, which are considered while


purchasing a bike by the user
This question was asked to know that which are the most important
features of bike that play an important role to purchase a bike.
Sr.
1
2
3
4
5
6

Features

No. of

Percentage

Brand name
Cost of vehicle
Fascinating looks
Updated technology
Fuel efficiency
Low maintenance cost

Respondents
42
9
13
3
25
8

42%
9%
13%
3%
25%
8%

45
40
35
30
25
20
15
10
5
0

Brand name

Cost of vehicle

Fascinating
looks
No. of
Respondents

Updated
technology
Fuel efficiency

The above table and graphical

Low
maintenance
presentation
cost shows that

1 st rank is

given to Brand Name & updated technology has been given 2 nd rank,
whereas fuel efficiency shows 3rd position, fascinating look stands 4th while
cost of vehicle & low maintenance cost is given 5th & 6th rank respective
(6) Analysis regarding information source
This question was asked to know from which sources respondents
come to know about Hero Honda.

Sr.
1
2
3
4

Source if information

No. of

Percentage

Advertising
Show room visit
Friends & Relatives
Dealers

Respondents
58
8
31
3

58%
8%
31%
3%

60
50
Advertising
40
30

Show room
visit

20

Friends &
Relatives

10

Dealers

No. of
Respondents

As per the review, current market media of information plays an


important a role to select the bike. According to above results, we can
derive that the advertising is the most powerful media to develop the
knowledge of product.

(7) Analysis regarding most convincing features, which lead you to


buy a bike.
Sr.
1

Features

No. of

Percentage

Brand name

Respondents
37

37%

2
3
4
5

Comfort & convincing


Better safety & style
Great power &pick up
Comparative price

6
25
29
3

6%
25%
29%
3%

40
35

Brand name

30
Comfort &
convincing

25
20

Better safety &


style

15

Great power
&pick up

10
5
0

Comparative
price
No. of
Respondents

The above table shows that 1st rank is given to brand name, 2nd rank
is given to great power & pick up, 3 rd rank is given better safety & style,
while comfort & convincing &comparative price are given 4 th &5th rank
respectively.

(8) Analysis regarding traveling of bike on average day.

The question was asked to know that the consumer drives how
many kilometers his vehicle on an average day.
Sr.
1
2
3

Kilometer

No. of

Percentage

Less than 15 kms.


15 to 30 kms.
More than 30 kms.

Respondents
32
24
44

32%
24%
44%

45
40
35
30
25

Less than 15
kms.

20

15 to 30 kms.

15

More than 30
kms.

10
5
0

No. of
Percentage
Respondents

According to survey we can conclude that 44% users are driving


their bike more than 30 kms. On an average day and 46% users are driving
their bike less than 15 kms and 15 to 30 kms.

(9) Analysis regarding fuel economy

The question was asked to know what mileage consumer gets from
their vehicle? Fuel economy of bike plays a vital role at the time of
purchase because so many customers are there whose ultimate requirement
is fuel economy.
Sr.
1
2
3
4
5

Average

No. of

Percentage

Less than 50
50 to 55
55 to 60
60 to 65
More than 65

Respondents
8
12
18
42
20

8%
12%
18%
42%
20%

45
40
35
30

Less than 50

25
20

50 to 55
55 to 60

15

60 to 65

10

More than 65

5
0

No. of
Respondents

As per the table & graphical presentation, we can say that 42% of
users get 60-65 average from their vehicle & 20% of users get more than
65 average from their vehicle. According to survey out of 100 samples
most of the users get good average from their vehicle.

(10)

Analysis of factors contributing to success of Hero Honda


The question was asked to know that which factor has played

dominating role in success of Hero Honda or how brand Hero Honda is


perceived in consumers mind. Through the results, company can know its
strength & the areas where improvement is required.
Sr.
1
2
3
4

Factors

No. of

Percentage

After sales service


Stylish outlook
Environment friendly
Advanced technology

Respondents
11
45
12
32

11%
45%
12%
32%

45
40
35
30

After sales
service

25

Stylish outlook

20
Environment
friendly

15
10

Advanced
technology

5
0

No. of
Respondents

The above table & graphical presentation shows that 1st rank is given
to stylish outlook with 45%, advanced technology has been ranked 2 nd with
32%, whereas environment friendly feature shows 3rd rank with 12%and at
last after sales service stands at 4th position with 11%.

(11)

Analysis regarding latest models of Hero Honda Limited


Generally personal liking & disliking affects to the choice of

different models. This question is asked to know that which model is more
preferred by the users, because every human being has their own choice.
Here survey position is given.
Sr.
1
2
3
4
5
6
7
8

Models of Hero Honda

No. of

Percentage

Glamour
Achiever
Karizma
Splendor
CD 100 DLX
CBZ
Ambition
Passion

Respondents
12
8
5
31
18
15
3
8

12%
8%
5%
31%
18%
15%
3%
8%

35
30

Glamour

25

Achiever

20

Karizma

15

Splendor

10

CD 100 DLX

CBZ

Ambition
No. of
Respondents

Passion

From the above result, we can say that most of the people have
splendor & users of CD 100 DLX are also high.

Limitations of Study
The research report suffers from many limitations, as all the
resources for carrying out research were limited. Some limitations are
given as under.
(1) It is only confined with Rajkot city, so the coverage is very narrow.
(2) The data collection is done only through questionnaire. Thus, it
lacks the support of personal interview and observation method.
(3) Moreover questionnaire consists only 12 questions. For detail study
more information is required.
(4) It is a survey of only 100 respondents. Sample size is only 100,
which is very small to take strategic decisions.
(5) Time constraints and limited number of questions make it difficult
to have required information from customer.

Suggestions
Hero Honda Limited has high qualified, well-experienced and wide
experienced executives, who always try for giving their best. Though
following are the main suggestions according to my knowledge.
(1) In recent time there is high crisis of fuel like petrol, diesel, and etc.
Therefore company should research for alternative of this fuel like
solar energy or LPG
(2) Sometimes it happens that the person who wishes to buy
motorcycle, but he cannot buy it because of higher prices of
motorcycles, therefore the company should design motorcycles of
lower cost so customer can afford it. As against there should be not
more changes in technology of motorcycles.
(3) It happens that in some region or city the demand of their product is
high and in some region or city their demand is low. Therefore the
company should try to have research for it, that why such things
happened and take proper measures according to satisfaction.

Conclusion
On the basis of project work of Hero Honda Limited undergone at
Perfect Auto Service, it can be concluded that the position of the Hero
Honda Limited is corporate field is very strong. The well-experienced,
efficient and industrious sales force is the strength of it. The value of Hero
Honda Limiteds vehicle is more than that of competitors.
Sophisticated mass production technology including the latest
machinery and equipment for material handling, precision high volume
machines, robotic welling automated painted and conversed vehicle
assembled them to rule the market amongst others.
Each vehicle has to pass through a lot of quality control checks.
Thus such a faculty does not only consumer tooling which meet precise
standards but also reduces the lead-time for introducing maker model.
Quality control is exercised in every good engineering company and with
Hero Honda it appeals to be way of life.
All the Hero Honda bikes have strong and nice engine and it will
obey the pollution control rules and regulations. All the products of Hero
Honda have made an agreement with Japans Honda Company for the
development of four-stroke engine.

At present Hero Honda Limited is enjoying monopoly in the fields


of bike. It is trying its level best to secure more market coverage and trying
to introduce new products to cover international market and can compete
with worlds giants in motorcycle manufacturers.

Bibliography
Marketing Management
By: Philip Kotler
Modern Marketing Management
By: Stanton
Essentials of Business Organization & Management
By: Sherlekar and Janardhanan