Company Certificate

Preface

In the current scenario, many dramatic changes are taking place in automobile industry in specific to Motorbike Industry. From the sponsorships of cricket matches to advertising through the conventional media, every company is launching new models and striving to capture more and more market share. So far the market leader have been Hero Honda and it has tried to project its brands in a very different manner As the Indian 2-wheeler industry is growing in double-digit figures in the last couple of years, which is due to the rising income levels, continuing poor public transport system, and declining interest rates, wider availability of

finance, decreasing product life cycles and increasing percentage of young population. The last few years have seen a fundamental shift in preference from scooters and mopeds towards motorcycles. Motorcycle sales have grown at a compounded annual growth rate (CAGR) of 27% for the last 6 years, while the Two Wheeler industry have grown at a CAGR of 11% over the same period. In the year 02-03, motorcycle sales have grown at 30% vs. 17% for two-wheelers. Hero Honda has been one the companies spending huge amount in advertising and sponsorships of events, it has been successful in creating a differentiated image. So all this prompted me to undertake this project in the direction of Finding gap between consumer perception and brand positioning of Hero Honda motorbikes in India.

This study is descriptive in nature and has been undertaken through survey method with structured questionnaire method as data collection instrument

Contents

1. Acknowledgement 2. Objective 2.1. Primary objective 2.2. Secondary objective 3. Introduction 3.1. Brand 3.2. Brand Positioning 3.3. Hero Honda Mission 3.4. Hero Honda Mandate 3.5. Consumer Perceptions 4. Company Profile 4.1. Vision

4.2. Strategy 4.3. Manufacturing 4.4. Technology 4.5. Product 4.6. Distribution 4.7. Brand 4.8. Key Policies 4.8.1. Environmental policies 4.8.2. Quality Policies 4.8.3. Safety Policies 5. Code of conduct for Directors and Senior Management 5.1. Introduction 5.2. Guidelines for conduct 5.3. Corporate business opportunities
6

5.4. Conflicts of interest 5.5. Company property 5.6. Confidential Information 5.7. Fair dealing 5.8. Compliance with law and regulations 5.9. Insider training 5.10. Encouraging the Reporting of illegal 5.11. Non compliance 5.12. Employees 5.13. Customers 5.14. Shareholders 6. Products 7. Research Methodology 7.1. Research design
7

7.1.1. Descriptive research 7.2. Sample design 7.2.1. Target Population 7.2.2. Sampling Technique 7.2.3. Sample size 7.2.4. Extent 7.2.5. Time 8. Statistical Data 8.1. Sales Performance 8.2. Occupation of the respondent 8.3. Age group of the respondent 8.4. Respondents who have correctly remembered punch lines

8.5. Respondents identifies these bikes as best mileage bikes 8.6. Respondents ranking of bikes on best looks and style 8.7. Respondents identified these bikes as fastest bikes. 9. Findings 9.1. Board of directors 9.2. Key milestones of Hero Honda 10. Conclusion and suggestions 11. Appendix 11.1. Questionnaire 12. Bibliography

Acknowledgement

PERSEVERANCE, INSPIRATION AND MOTIVATION HAVE ALWAYS PLAYED A KEY ROLE IN THE SUCCESS OF ANY VENTURE. SO HEREBY, ITS MY PLEASURE TO RECORD THANKS & GRATITUDE TO THE PERSONS INVOLVED. FIRST, I WOULD LIKE TO THANK ALL THE PERSONNEL OF HERO HONDA FOR THEIR CONTINUOUS SUPPORT, STIMULATING SUGGESTIONS AND HELPING ME ALL THE TIME DURING MY PROJECT. A SPECIAL THANKS GOES TO MY MENTOR MR.SANTOSH SIR. WHO WERE ALWAYS READY TO LISTEN & GIVE ADVICE.

10

MY MENTOR HAS BEEN A FRIEND AND A GUIDE.HE WAS ALWAYS THERE TO MEET & TALK ABOUT MY IDEAS. HE WAS THERE TO LISTEN ME & HELP ME OUT IF I EVER HAD ANY PROBLEM. HE HAS BEEN SO LENIENT ALSO. AT LAST, THANKS TO MY FAMILY MEMBERS & ALSO TO MY FRIENDS FOR BEING SO SUPPORTIVE.

RITESH GUPTA

11

Objective

OBJECTIVES OF THE RESEARCH STUDY

Primary Objective To find the gap between consumer perception and the brand positioning of the Hero Honda bikes in India.

Secondary Objectives 1. Understand the brand positioning of Hero Honda bikes in Indian market. 2. Understand the consumer perception towards Hero Honda bikes. 3. Understanding the consumers choices while purchasing bikes.

12

4. Various reasons considered while purchasing a bike. 5. Understanding the consumers recall of bikes, punch lines, bike features, and brand ambassadors and associating them with the brand positioning of bikes by Hero Honda Company. 6. To check the effectiveness of advertising by Hero Honda Company.

13

Introduction

In the current scenario, many dramatic changes are taking place in automobile industry in specific to Motorbike Industry. From the sponsorships of cricket matches to advertising through the conventional media, every company is launching new models and striving to capture more and more market share. So far the market leader have been Hero Honda and it has tried to project its brands in a very different manner. As the Indian 2-wheeler industry is growing in double-digit figures in the last couple of years, which is due to the rising income levels, continuing poor public transport system, and declining interest rates, wider availability of finance, decreasing product life cycles and increasing percentage of young population.
14

The last few years have seen a fundamental shift in preference from scooters and mopeds towards motorcycles. Motorcycle sales have grown at a compounded annual growth rate (CAGR) of 27% for the last 6 years, while the Two Wheeler industry have grown at a CAGR of 11% over the same period. In the year 02-03, motorcycle sales

have grown at 30% vs. 17% for two-wheelers. Hero Honda has been one the companies spending huge amount in advertising and sponsorships of events, it has been successful in creating a differentiated image. So all this prompted me to undertake this project in the direction of Finding gap between consumer perception and brand positioning of Hero Honda motorbikes in India. This study is descriptive in nature and has been undertaken through survey method with structured questionnaire method as data collection instrument.
15

The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision.

The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports

16

such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010. In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date.

17

BRAND
A brand is a name, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. In essence, a brand identifies the seller or maker. It can be a name, trademark, logo, or other symbol. Under trademark law, the seller is granted exclusive rights to the use of the brand name in perpetuity. Thus brands differ from other assets such as patents and copyrights, which have expiration dates. A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits, and services to the buyers. The best brands convey a warranty of quality.

18

Brand conveys up to 6 levels of meaning: 1. ATTRIBUTES 2. BENEFITS 3. VALUES 4. CULTURE 5. PERSONALITY 6. USER Marketers must decide at which level(s) to anchor the brands identity. The most enduring of a brand are the values, culture and personality. They define the brands essence.

19

BRAND POSITIONING
In todays, highly competitive environment, a distinctive image is most important. In todays scenario Brand Positioning and Market Segmentation have become the hallmarks of market research. The core thought behind Brand Positioning is the idea that each Brand occupies a particular point or space in the individuals mind, a point which is determined by the consumers perception of the brand in question and in its relation to other brands. In marketing terms, there is no such thing as a product or service that exists in space, independent of the consumer. The product must find a place in the individual consumers perception of the world around him. This perceived image of the brand belongs not to the product rather is the property of the consumers mental perceptions.
20

So creating the particular desired perception and occupying a particular point or space in the target consumers mind is the essence of the positioning or repositioning strategies. This perception is based on the brands functional attributes of benefits as well as on the non functional or emotional associations. It is colored by target consumers own attributes, beliefs, and experiences, thus leading to the fact that different segments may perceive the same brand in different ways. The 4 basic concepts of positioning are:1. Product class or the structure of the market in which ones brand competes. 2. Consumer segmentation. 3. Consumer perception of ones brand in relation to the competitors.
21

4. The benefits offered by the brand.

These 4 components must be taken together while considering the positioning of the brand.

22

HERO HONDA'S MISSION

Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

23

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management, extensive dealer network, efficient supply chain and world-class products with cutting edge technology from Honda Motor Company, Japan. The teamwork and commitment are manifested in the highest level of customer satisfaction, and this goes a long way towards reinforcing its leadership status.

24

CONSUMER PERCEPTION
Consumer perception is a process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception is the image created in the mind of consumers about anything whether the marketer want to create that image or not through marketing campaigns. Perception depends not only on the physical stimuli but also on the stimulis relation to the surrounding field and on conditions within the individual. Why do people perceive the same situation differently? People can emerge with different perceptions of the same object because of three perceptual processes:
25

selective attention, selective distortions, and selective retention. As a result, people may not necessarily see or hear the message that marketers want to send. Marketers must therefore be careful to take these perceptual processes into account in designing their marketing campaigns.

26

Company profile
Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India.

The company is a joint venture between India's Hero Group and Honda Motor Company, Japan that began in 1984.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date.

27

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle Splendor.

Vision
The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that dream into a reality is by remaining focused on that vision.

28

Strategy
Hero Hondas key strategy has been driven by innovation in every sphere of activity building a robust product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities.

Manufacturing
Hero Honda bikes 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 is based at Haridwar, in the hill state of Uttrakhand.

29

Technology
In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. 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.

Products
Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments.

30

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 Honda's extensive sales and service network now spans close to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealerappointed outlets across the country.

Brand
The company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and ground- level activation.

31

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010.

2010-11 Performance
Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent Net profit after tax at Rs. 1927.90 Crores Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per share on face value of each share of Rs. 2 each

32

KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY.

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a highquality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business. A business must not grow at the expense of mankind and man's future but rather must serve mankind.
33

"We must do something for the community from whose land we generate our wealth."

-A famous quote from Worthy Chairman Mr.Brijmohan Lall Munjal.

34

Environment Policy
We at Hero Honda are committed to demonstrate excellence in our environmental performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business processes and practices with specific consideration to substitution of hazardous chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

35

Comply with all applicable environmental legislation and also controlling our environmental discharges through the principles of "alara" (as low as reasonably achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water, electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while promoting their involvement in ensuring sound environmental management.

36

Quality Policy
Excellence in quality is the core value of Hero Honda's philosophy. We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customer's growing aspirations through:

Innovation in products, processes and services. Continuous improvement in our total quality management systems.

Teamwork and responsibility.

37

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who may be affected by its operations. We believe that the safe work practices lead to better business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and contractors.
38

Continuous improvements in safety performance through precautions besides participation and training of employees.

39

CODE OF CONDUCT FOR DIRECTORS AND SENIOR MANAGEMENT

I. INTRODUCTION
This Code of Conduct has been adopted by the Board of Directors of Hero Honda Motors Limited for its members and the Senior executives one level below, the Directors, including all functional heads (hereinafter referred to as "Specified employee").

There are certain clauses of the Code, which are meant for Directors only such as attending meetings of the Board and Committee thereof. The Specified employees need to ignore such clauses.

The principal duty of the Board of Directors, along with management, is to ensure that the Company is well
40

managed in the interests of its shareholders. The Board of Directors plays the central role in the Company's governance. It is the Company's decision-making authority on all matters except those reserved to shareholders or delegated to the management. The Board of Directors is not expected to assume an active role in the day-to-day management of the Company.

41

II. GUIDELINES FOR CONDUCT

Each director and Specified Employees seek to use due care in the performance of his/her duties, be loyal to the Company, act in good faith and in a manner such Director and Specified employee reasonably believes to be not opposed to the best interests of the Company. A Director and Specified employee should seek to also:

Make reasonable efforts to attend Board and committee meetings.

Dedicate time and attention to the Company. Comply with all applicable laws, regulations, confidentiality obligations and corporate policies of the Company.

42

Be independent in judgment and actions and to take all reasonable steps to be satisfied as to the soundness of all decisions taken by the Board of Directors.

43

III. CORPORATE BUSINESS OPPORTUNITIES

In carrying out their duties and responsibilities, Directors and Specified employees should avoid:

Appropriating corporate business opportunities for themselves that are discovered through the use of Company property or information or their position as Directors and Specified employees.

Using Company property or information, or their position as Director and Specified employees, for personal gain.

Competing with the Company.

44

A corporate business opportunity is an opportunity:

1. Which is in the Company's line of business or proposed expansion or diversification. 2. Which the Company is financially able to undertake. 3. Which may be of interest to the Company. A Director and Specified employee, who learns of such a corporate business opportunity and who wishes to avail of it should disclose such opportunity to the Company's Board of Directors. If the Board of Directors determines that the Company does not have an actual or expected interest in such opportunity, then, and only then, may the Director and Specified employee avail of it, provided that the Director and Specified employee has not wrongfully utilized the Company's resources in order to acquire such opportunity.
45

IV. CONFLICTS OF INTEREST

Each Director and Specified employee should endeavour to avoid having his or her private interests interfere with: i) the interests of the Company or ii)his or her ability to perform his or her duties and responsibilities objectively and effectively.

They should avoid receiving, or permitting members of their immediate family to receive, improper personal benefits from the company, including loans from or guarantees of obligations by the Company, except as may be provided in their employment contract.

They should make a full disclosure to the entire Board of any transaction or relationship that such a Director and Specified employee reasonably expects could give rise to an actual conflict of interest with the Company
46

and seek the Board's authorization to pursue such transactions or relationships.

47

V. COMPANY PROPERTY
In carrying out their duties and responsibilities, Directors and Specified employees should endeavour to ensure that management is causing the Company's assets, proprietary information and resources to be used by the Company and its employees only for legitimate business purposes of the Company.

48

VI. CONFIDENTIAL INFORMATION

Director and Specified employees should maintain the confidentiality of information entrusted to them in carrying out their duties and responsibilities, except where disclosure is approved by the Company or legally mandated or if such information is in the public domain.

The Company's confidential and proprietary information shall not be inappropriately disclosed or used for the personal gain or advantage of any Director and Specified employees or anyone other than the Company. These obligations apply not only during a Director's and Specified employee's term, but thereafter as well.

49

VII. FAIR DEALING

In carrying out their duties and responsibilities, Director and Specified employees should endeavour to deal fairly, and should promote fair dealing by the Company, its employees and agents, with customers, suppliers and employees.

Director and Specified employees should not seek to take unfair advantage of the Company through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing.

50

VIII. COMPLIANCE WITH LAWS AND REGULATIONS

In carrying out their duties and responsibilities, Directors and Specified employees should comply, and endeavour to ensure that the management is causing the Company to comply, with applicable laws, rules and regulations. In addition, if any Director and Specified employee becomes aware of any information that he or she believes constitutes evidence of a material violation of any securities or other laws, rules or regulations applicable to the Company or the operation of its business, by the Company, any employee or another Director and Specified employee, then such Director and Specified employee should bring such information to the attention of the Chairman of the Audit Committee.

51

IX. INSIDER TRADING

Director and Specified employees should observe all applicable laws and regulations including the Company policies and Codes as applicable to them with respect to the purchase and sale of the Company's securities.

It is the responsibility of each Director and Specified employee to become familiar with and understand these laws, regulations, policies and codes and should seek further explanations and advice concerning their interpretation, if required.

Any waiver of or amendments to the Company's policies or Codes may be made only by the Company's Board of Directors and will be disclosed promptly as required by applicable laws and regulations including the rules of any exchange on which the Company's securities are listed or
52

traded.

Director and Specified employees should direct questions regarding the application or interpretation of these guidelines to the Company Secretary/Compliance Officer.

53

X. ENCOURAGING THE REPORTING OF ILLEGAL OR UNETHICAL BEHAVIOUR

Director and Specified employees should endeavour to ensure that management is causing the Company to promote ethical behaviour and to encourage employees to report evidence of illegal or unethical behaviour to appropriate Company personnel.

Director and Specified employees should endeavour to ensure that the Company will not allow retaliation against any employee who makes a good faith report about a possible violation of the Company's Code of Conduct.

54

XI. NON-COMPLIANCE
Suspected violations of this Code may be reported to the Chairman of the Board or the Chairman of the Audit Committee. All reported violations should be appropriately investigated.

A Director and Specified employees charged with a violation of this Code should not participate in or vote on the matter in the meeting of a Committee or the Board concerning his/her alleged violation, but may be present at a meeting of the Board or of a Committee convened for that purpose.

Any waiver of this Director and Specified employees' Code must be approved by the Board of Directors and publicly disclosed if required by any applicable law or regulation.

55

XII. EMPLOYEES
The Director and Specified employee should respect each and every employee of the Company, treat each of them in a fair and equitable manner; respect their privacy and not to share/disclose their personal information without their prior consent; maintain non-discriminatory approach and refrain from harassing employees, making sexual advancements, coercion, threat by virtue of his/her position with the Company.

56

XIII. CUSTOMERS
The Director and Specified employee should ensure to provide products and services, which meet the desired quality and safety standards and redress the Customer's grievance genuinely.

XIV. SHAREHOLDERS
The Director and Specified employee should ensure to protect shareholders interest by ensuring maintenance of accurate and complete records by avoiding false misleading or artificial entries in the Books of accounts.

57

PRODUCTS
Company has many products to be sold in market. These products are so good and are very much liked by the market. Products of the company are:1. CD-Dawn 2. CD-Deluxe 3. Splendor+ 4. Splendor NXG 5. Super Splendor 6. Passion Pro 7. Glamour 8. Ambition 9. CBZ Extreme 10. 11. Karizma Karizma ZMR
58

Research methodology

RESEARCH DESIGN Due care is taken to ensure minimum bias and maximum reliability. Descriptive Research Descriptive research is used in the project. The main objective of descriptive research is to describe the market characteristics or function. The ideal way to go about it was through Questionnaire. Questionnaire was designed based on research objectives and the targeted segment. It is the part of conclusive research.

59

Two types of methods of data collection is used in research: .Secondary data .Survey method

SAMPLE DESIGN
Target Population Males and females above 18 years of age in my region are considered for the sample target population.

Sampling Technique Convenience sampling: A non-probability sampling technique that attempts to obtain a sample of convenient element. The selection of sampling units is left primarily to the interviewer, or the researcher uses personal judgment

60

for taking sample. It is done, by using convenience in time and reach, using students, friends, etc in the sample.

Sample Size The sample size of 70 was taken for the Research Study.

Extent Extent of this study is limited to my region only.

Time Time period in which the data was collected is 45 days.

61

Statistical data
SALES PERFORMANCE

FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 Total Sales 26,21,400 30,00,751 33,36,756 33,37,142 37,22,000

Exports (incl. in above)

64,015

92,666

97,341

90,571

81,193

62

Occupation of the respondents

63

64

Age group of the respondents

65

66

Respondents who have correctly remembered punch lines.

67

68

Respondents identified these bikes as best mileage bikes

69

70

Respondents ranking of bikes on best looks and styles.

71

Respondents identified these bikes as fastest bikes

72

73

Findings
BOARD OF DIRECTORS
No. Name of the Directors 1 Mr. Brijmohan Lall Munjal Designation Chairman & Whole-time Director Managing Director & C.E.O. Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-executive & Independent Director Non-executive & Independent Director

Mr. Pawan Munjal

3 4 5 6 7 8

Mr. Sunil Kant Munjal Mr. Suman Kant Munjal Mr. Takashi Nagai Mr. Toshiyuki Inuma Mr. Paul Edgerley Mr. Pradeep Dinodia

Gen. (Retd.) V. P. Malik

74

10 Mr. Analjit Singh

Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director

11 Dr. Pritam Singh

12 Mr. M. Damodaran

13 Mr. Ravi Nath

14 Dr. Anand C. Burman

75

KEY MILESTONES OF HERO HONDA

Year Event 1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984 Hero Honda Motors Ltd. Incorporated 1985 First motorcycle "CD 100" rolled out 1987 100,000th motorcycle produced 1989 New motorcycle model - "Sleek" introduced 1991 New motorcycle model - "CD 100 SS" introduced 500,000th motorcycle produced 1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced 1997 New motorcycle model - "Street" introduced Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
76

1998 2,000,000th motorcycle produced 1999 New motorcycle model - "CBZ" introduced Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV Holland Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing Director, Mr. Raman Kant Munjal 2000 4,000,000th motorcycle produced Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland Splendor declared 'World No. 1' - largest selling single two-wheeler model "Hero Honda Passport Programme" - CRM Programme launched 2001 New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced

77

2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor - World's largest selling motorcycle crossed the 5 million mark
78

New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row 15 million production milestone achieved 2007 Hero Honda is the World No. 1 for the 6th year in a row New 'Splendor NXG' launched New 'CD Deluxe' launched New 'Passion Plus' launched New motorcycle model 'Hunk' launched
79

20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration New 'Pleasure' launched Splendor NXG lauched with power start feature New motorcycle model 'Passion Pro' launched New 'CBZ Xtreme' launched 25 million production milestone achieved CD Deluxe lauched with power start feature New 'Glamour' launched New 'Glamour Fi' launched 2009 Hero Honda GoodLife Program launched Hunk' (Limited Edition) launched Splendor completed 11 million production landmark New motorcycle model 'Karizma - ZMR' launched Silver jubilee celebrations

80

2010 New model Splendor Pro launched Launch of new Super Splendor and New Hunk 2011 New licensing arrangement signed between Hero and Honda Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma Crosses the landmark figure of 5 million cumulative sales in a single year

81

 Recognizing Hero Honda bikes, among a list of

bikes.
Mostly recognized bikes of Hero Honda are Splendor,

CBZ, Passion, Karizma, Ambition, whereas the bikes, which were mostly not recognized, are CD100, CD Dawn, and Dawn. It implies that there exists a wide gap between the Brand Positioning of bikes by Hero Honda and Brand Positioning by other companies also.

Recognizing Hero Honda bikes based on best

mileage.
The company has positioned the best mileage bikes as

Dawn, CD Dawn, Splendor, CD 100. The combined correct responses of best mileage positioned bikes were only 46% of the responses. Many of the respondents answered only one bike as positioned on the basis of best mileage.

82

 Recognizing Hero Honda bikes based on looks

and style.
As it is said that beauty lies in the eyes of beholder, the

ranking of Hero Honda bikes on looks and Style is a matter of personal choice.

Recognizing Hero Honda bikes based on more color offerings.

Majority of the respondents have rated Passion as the

bike having more colors, which is about 56%. But the answer is Ambition and Karizma and their combined response is 33% of the respondents. But the majority consumers perception is different about 77% of the respondents, who have rated other bikes or they dont know.

83

 Recognizing Hero Honda bikes based on fastest bike.

Majority of the respondents of about 55% have given

right answers of karizma. Overall, it can be said that a very large part of about 45% respondents either do not know about the positioning of karizma bike.

Recognizing Hero Honda bikes based on best pickup.

Majority of the respondents about 38% have given right

answers of karizma. Whereas the about 31% of the respondents have rated CBZ which is next to karizma. Overall, it can be said that a very large part of respondents have given wrong answers or they do not know the positioning of karizma bike.

84

 Recognizing Hero Honda bikes based on engine capacity.

The majority of the responses are correct, but a large

number of the responses were wrong. Therefore a wide gap exists between the consumer perception and the brand positioning of the Hero Honda bikes based on the engine capacity.

85

Conclusion and Suggestion

Positioning of bikes on mileage has not been done properly. Some Hero Honda bikes like Dawn, CD Dawn,

CD 100SS, Splendor, Passion, and CD 100 falls in this category. But the consumers remembered only one of them and rather they have considered other bikes also. There positioning of bikes based on mileage should be done again.

As the consumers gets confused and have problem in associating bikes with Hero Honda company, therefore the company should focus on projecting these bikes as Hero Honda bikes. One reason, which I find is that Hero Honda has positioned the bikes as separate brands and have not associated Hero Honda names with bikes.

86

Therefore the company must use Brand names with sub brands. Like Bajaj Pulsar, TVS Victor, etc.

They should now concentrate more on their product which are not showing good sales and should discontinue

them if see constant losses, newer products to be introduced on their place.

The company should also lower the spare parts any the maintenance cost as the middle class people feel it is little high compared to the other brands spare parts. The company should also provide enough spare parts to the dealers so that the customers wont have any problem looking for the spare parts during emergency.

87

Appendix
Questionnairs
Q Name:________________ Q Gender: Male____ Q Occupation: Female____

Business____ Service____ Student____ Self Employed____

Q Address:________________ Q Age: 18-25____ 25-30____ 30-35____ 35 & above____

88

Q Do you own a Bike (Y/N) ____ If Yes, Name of bike purchased______________ If No, do you want to purchase a bike________ Q Satisfaction after purchase (Tick ) High____ Medium____ Low____ Not applicable____ Q Name other brands considered and compared before purchasing your bike.? ___________ ____________ ____________ _____________

89

Q Which brand comes to your mind thinking of best mileage for Hero Honda bikes? (Tick) Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

90

Q Rank the bikes which have best looks and style (in descending order, 1 being best and so on). Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

91

Q Which Hero Honda bike offers more colors(Tick): Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

92

Q Which among the following is the fastest bike(Tick): Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

93

Q Which among the following has best pickup(Tick): Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

94

Q Rank the following bikes based on engine capacity(In ascending order, 1 being best and so on): Ambition______ Karizma______ CD-Dawn______ CBZ______ Passion______ Splendor______ CD-Deluxe______ Cant say_____

95

Bibliography

1. Boyd, W. Harper, Ralph Westfall, and Stanley F. Stasch, Marketing Research (Seventh edition) pp. 90-91.

2. Gupta, Anil and Anupam Ghosh, Brand Biography Hero Honda, Advertising Express, pp. 41-43.

3. Kotler, Philip Marketing Management (Ninth Edition), Prentice Hall of India Pvt. Ltd. pp. 185-186.

96

4. Kotler, Philip Marketing Management (Ninth Edition), Prentice Hall of India Pvt. Ltd. pp. 443.

5. http://www.midday.com/news/business/2003/may/5300 5.htm Bajaj, Hero Honda vie for pole position accessed on 20 April 2004.

6. http://www.mouthshut.com/readreview/42966-1.html 7. http://www.mouthshut.com/readreview/39860-1.html 8. http://www.herohonda.com/site/home/home.asp

97