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INTRODUCTION
Promotion is true that products are manufactured to satisfy the needs of the consumers.. But
alone is not enough. Today the responsibility of the manufacturers does not cease with
physical production whatever may be the nature of the product. The present day marketers
are consumer oriented where it is the duty of the manufacturers to know from where, when,
how and what price the products would be available. Successful marketing consists in
offering the right product of the right price of the right place (and time) with right
promotion.
In course of time, various activities came into vogue designed particularly to help easy sale
of goods. These activities commonly known as promotional Mix. The marketing
communication Mix also called as the Promotion Mix consists of four major tools.
1. Advertising.
2. Sales Promotion
3. Publicity
4. Personal Selling
Generally marketing communication is undertaken to pass on the message of a product or
sale to the ultimate consumers. Thus, there are three elements in this process.
The purpose of advertising is motivating but to sell something a product, a service or
Reliance. The real objective of advertising is effective communication between producers
and consumers. In other words the ultimate purpose all advertising is Increased awareness
list of the following specific objectives of advertising.
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The process of selling is ensured by personal selling supposed by advertising and sales
promotion. Of these three methods personal selling occupies the predominant role mainly
because of the personal element involves. It may be described as a personal source rendered
to the community in connection with marketing of goods.
It is a marketing process with which consumers are personally persuaded to by goods and
services offered by a manufacturer. The most powerful element in the promotional mix is
salesman ship, is not something very new. Even centuraries ago salesman ship was practiced
in Greece and Rome. According to Peter Drucker Cyrus Mecornie was the first man to use
modern technique of selling.
Promotion includes all those functions, which have to do with the marketing of a product all
other activities designed to increase and expand the market. But it is clearly distinguished
from advertising and personal selling, through basic aim or all the three is one and the same
viz., to increase the volume of sales.
Sales promotion in a specific sense refers to those sales activities that supplement both
personal selling and advertising and co-ordination ate them and help to make them effective,
such as displays, shows and expositions, demonstrations and other non recurrent selling
efforts not in the ordinary routine.
In a general sense the sales promotion includes personal selling, advertising and
supplementary selling activities.
Evaluation of Sales Promotion:
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Two decades ago, there was no agreement among the marketing people that there was a
separate sales promotion function. In those days, promotion was a share- run to gain a short
run good.
The importance of sales promotion is modern marketing has increased mainly an account of
its ability in promoting sales and preparing the ground for future expansion. The main
objective of sales promotion is to attract the prospective buyer towards the product.
PUBLICITY
The publicity is derived as Any form of commercially significant news about a product,
and institution, a service, or a person published I a space or radio i.e. not paid for by the
sponsor. In short advertisement is paid form of publicity. It is to be noted here that though
the terms ADVERTISING AND Publicity or differences in the field of marketing, both
are used interchangeably.
The media are broadly classified into direct indirect. Direct method of advertising refers to
such methods used by the advertiser with which he could established a direct contact with
the prospects. Most of the media are indirect in nature EX: Free Publicity, cinema, etc.
ACTIVITIES UNDER THE 4P ARE OF THE MARKETING MIX:
1) Product:
Managing the product includes planning and developing the right products and services to
be marketed by the company policy strategy guidelines are needed for changing the existing
products and adding new ones.
A product activity includes policies and procedures relating to:
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a. Product variety, quality, features, design, brand name, packaging, size, services,
warranties and returns.
b. Markets to sell-whom, where and in what quantity.
c. New product policy, R&D programs.
2) Pricing activities:
Include policies and procedures relating to
1. List prices.
2. Discounts.
3. Allowances.
4. Payment period.
5. Credit terms.
Generally markets consider the following factors while seeking price: target customers, cost,
competition, social responsibility.
3) Promotional activities:
Includes policies and procedures relating to.
Advertising: media mix, budget, allocation and programmes.
Personal setting: objectives, quality of sales force, cost level, level of motivation.
Promotion: special setting plans/ devices directed at or through the trade forms of
these devices are consumer promotions and trade opinions.
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Publicity and public relations.
4) Place/distribution activities: Basically place of distribution activities are to transfer
ownership to consumer and to place products, services, idea at the right time and place.
Distribution is made up of two components
Physical distribution and
Channels of distribution
i) Physical distribution: Activities involved in moving products or services from
producer to consumer are.
Transportation, warehousing and storage, order processing and inventory control.
ii) Channels of distribution;: These are the routes taken by good from producer-consumer
it includes.
Channel design
Location of outlets
Channel remuneration
Dealer-principal relations
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NEED OF THE STUDY
1. To introduce a new product in the market.
2. To influence the public with the help of new uses of the project.
3. To encourage dealers to stock more goods.
4. To with stand in the competitive field.
OBJECTIVES OF THE STUDY
1. To study the promotional activities offered by the firm.
2. To identify the impact of sales in the market by using promotional strategies.
3. To study the influence of schemes offered by firm on sales.
4. To study the promotional activities towards the after sale services offered to him or
her.
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IMPORTANCE OF THE STUDY
1. It helps to establish a cordial and abiding relationship between the organization and
its customers.
2. It is a creative art. It creates wants a new.
3. It is a science, in the sense that One human mind influences another human mind.
4. Personal selling imparts knowledge and technical assistance to the consumers.
SCOPE OF STUDY
The area of study is considered to be in two districts. Those are Hyderabad and Ranga
Reddy districts. It concerns areas like promotion, sales and customers.
PERIOD OF THE STUDY
The proposed project study was pertaining to the time period of 2009-2011.
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METHODOLOGY OF THE STUDY
Source of data:
1. Primary Data:
The primary data is collected through questionnaires from the customers.
2. Secondary Data:
The secondary data is collected from the books, journals and internet.
Data collected method:
The data is collected through close ended questionnaire.
a) Sample size:
i. The sample size of the survey (N) is 100.
ii. Samples are collected customers of showroom.
iii. The age limit of the customers is in between 20-55.
iv. The customers will be randomly selected.
b) Tools & Techniques: For analyzing the data statistical tables, percentages, and bar-
diagrams will be used.
c) Further scope of study: The topic of promotional activities is vast there is further
scope of study for eg; Advertising, sales promotion etc.
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d) Kind of research: The research study will be carried out in qualitative and
quantitative research approaches.
LIMITATIONS TO THE STUDY
1. Primary data analysis only depends on the responses given by the respondents.
2. Process of study/survey is limited only to limited customers that is 100.
3. Survey was conducted for the period of 90 days only because of which complete
information was not able to be collected.
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REVIEW OF LITERATURE
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The increasing competition in business to pay much more attention to satisfying customers.
It may help the marketer to notice role of customer satisfaction in the overall context of
product of service development and management.
Customers do not buy services, they bys satisfaction. Hence marketers must be clear aboutthe satisfaction the customer is seeking and check out whether the customer are getting the
actual satisfaction.
This study helps the marketers to take necessary steps to gain the competitive advantage
over the competitors.
The study helps to predict further behavior intentions of the customers such as intention to
Re-purchase, intention to increase the usage, intention to recommend the product and
service to others. Today the customers have wide variety of motorcycles to chose. If the
satisfaction level of the customer goes down he may switch over to other brand. Ultimately
the company loses its actual customers. This study helps the marketer to take necessary
steps to overcome this problem and retain its actual customers.
1. Can be major source of revenue, although it often receives too little management
attention.
2. Is essential for achieving customer satisfaction and good long-term relationship-as
identified by a number of researches.
3. Can provide a competitive advantage.
4. Play a role in increasing the success rate of new products introduced.
5. Needs to be fully evaluated during new product development, as good product
design can make customer support more efficient and cost-effective. Increasedcompetition within many industries has led to increased attention on customer
service.
Various studies indicate that upset customers may have big effect on sales of company.
Therefore all dealers try to put all their attention to keep their customers satisfied and fulfill
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their needs and wants as much as possible. One of the strong tools which help all companies
in this matter is providing best after-sales service.
Market The set of all actual and potential buyers of a product of a service.
Marketing
In todays competitive world any organization to run successfully three factors plays an
important role are
1. Finance.
2. Human resources.
3. Marketing.
4. Along with the above mentioned the other three factors which plays an important
role to achieve the organizational goals and objectives in the competitive market
they are
5. Innovative technology.
6. Quality.
7. Price.
Because of globalization, privatization and liberalization the number of competitors are
increasing at a constant rate as a result of which consumers are preferring products which
are of high quality, technology and at a reasonable price.
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Though the company is producing high quality products at a reasonable price to be success
in the competitive market the company should take promotional activities and marketing
tools and techniques to achieve its mission and vision.
Marketing is not just telling and selling but in the new sense satisfying customer needs
marketing is a comprehensive term and it includes all resources and a set of activities
necessary to direct and facilitate and flow of goods and services from producer to consumer
in the process of distribution.
Elements of modern marketing system:
The art and science of choosing target customers and building profitable relationships with
them.
13
Suppliers
Company
(Marketer
Competito
rs
Marketing
Intermediari
es
End users
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can do to influence the demand for its product. It can be collected into four groups of
variables known as FORUPS.
1. PRODUCT
2. PRICE
3. PLACE
4. PROMOTION
Product
Product means the goods-and services combination the company offers to the target
market.
Price
Price is the amount of money customers have to pay to obtain product.
Place
Place includes company activities that make the product available to a target consumers.
Promotion
Promotion means the activities taken by the company to communicate the merits of the
product and promote its product to the target market.
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INDUSTRY PROFILE
Historical Industry Development
India is the second largest manufacturer and producer of two-wheelers in the world. It
stands next only to Japan and China in terms of the number of two-wheelers produced and
the domestic sales respectively. This distinction was achieved due to variety of reasons like
restrictive policy followed by the Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public transportation system etc.
The Indian two-wheeler industry made a small beginning in the early 50s when Automobile
Products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.
In 1948, Bajaj Auto began trading in imported Vespa scooters and three-wheelers. Finally,
in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of
Italy. The agreement expired in 1971.
In the initial stages, the scooter segment was dominated by API; it was later overtaken by
Bajaj Auto. Although various government and private enterprises entered the fray for
scooters, the only new player that has lasted till today is LML.
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Under the regulated regime, foreign companies were not allowed to operate in India. It was
a complete seller market with the waiting period for getting a scooter from Bajaj Auto being
as high as 12 years.
The motorcycles segment was no different, with only three manufacturers viz Enfield, Ideal
Jawa and Escorts. While Enfield bullet was a four-stroke bike, Jawa and the Rajdoot were
two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes
and Escorts 175cc bike.
The two-wheeler market was opened to foreign competition in the mid-80s. And the then
market leaders - Escorts and Enfield - were caught unaware by the onslaught of the 100cc
bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low
power bikes, demand swelled, resulting in Hero Honda - then the only producer of four
stroke bikes (100cc category), gaining a top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero
Honda brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD kits, and later on progressed to
indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought
in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years.
The industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s.
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The industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles
in 1990.
The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing
ease of use to the scooter owners. This helped in inducing youngsters and working women,
towards buying scooters, who were earlier, inclined towards moped purchases. In the 90s,
this trend was reversed with the introduction of scooterettes. In line with this, the scooter
segment has consistently lost its part of the market share in the two-wheeler market.
In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.
The reasons for recession in the sector were the incessant rise in fuel prices, high input costs
and reduced purchasing power due to significant rise in general price level and credit crunch
in consumer financing. Factors like increased production in 1992, due to new entrants
coupled with the recession in the industry resulted in company either reporting losses or a
fall in profits.
India is one of the very few countries manufacturing three-wheelers in the world. It is the
world's largest manufacturer and seller of three-wheelers. Bajaj Auto commands a
monopoly in the domestic market with a market share of above 80%, the rest is shared by
Bajaj Tempo, Greaves Ltd and Scooters India.
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The total number of registered two-wheelers and three-wheelers on road in India, as on
March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has
almost doubled in 1996 from a base of 12.6mn in 1990.
Evolution of Two-wheeler Industry in India
Two-wheeler segment is one of the most important components of the automobile sector
that has undergone significant changes due to shift in policy environment. The two-wheeler
industry has been in existence in the country since 1955. It consists of three segments viz.
scooters, motorcycles and mopeds. According to the figures published by SIAM, the share
of two-wheelers in automobile sector in terms of units sold was about 80 per cent during
2003-04. This high figure itself is suggestive of the importance of the sector. In the initial
years, entry of firms, capacity expansion, choice of products including capacity mix and
technology, all critical areas of functioning of an industry, were effectively controlled by the
State machinery. The lapses in the system had invited fresh policy options that came into
being in late sixties. Amongst these policies, Monopolies and Restrictive Trade Practices
(MRTP) and Foreign Exchange Regulation Act (FERA) were aimed at regulating monopoly
and foreign investment respectively. This controlling mechanism over the industry resulted
in: (a) several firms operating below minimum scale of efficiency; (b) under-utilization of
capacity; and (c) usage of outdated technology. Recognition of the damaging effects of
licensing and fettering policies led to initiation of reforms, which ultimately took a more
prominent shape with the introduction of the New Economic Policy (NEP) in 1985.
However, the major set of reforms was launched in the year 1991 in response to the major
macroeconomic crisis faced by the economy. The industrial policies shifted from a regime
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of regulation and tight control to a more liberalized and competitive era. Two major results
of policy changes during these years in two-wheeler industry were that the, weaker players
died out giving way to the new entrants and superior products and a sizeable increase in
number of brands entered the market that compelled the firms to compete on the basis of
product attributes. Finally, the two-wheeler industry in the country has been able to
witness a proliferation of brands with introduction of new technology as well as increase in
number of players. However, with various policy measures undertaken in order to increase
the competition, though the degree of concentration has been lessened over time,
deregulation of the industry has not really resulted in higher level of competition.
A Growth Perspective
The composition of the two-wheeler industry has witnessed sea changes in the post-reform
period. In 1991, the shares of scooters were about 50 per cent of the total 2-wheeler demand
in the Indian market. Motorcycle and moped had been experiencing almost equal level of
shares in the total number of two-wheelers. In 2003-04, the share of motorcycles increased
to 78 per cent of the total two-wheelers while the shares of scooters and mopeds declined to
the level of 16 and 6 per cent respectively. A clear picture of the motorcycle segment's
gaining importance during this period is exhibited by the Figures 1, 2 and 3 depicting total
sales, share and annual growth during the period 1993-94 through 2003-04.
INDIAN TWO WHEELER INDUSTRY
The two-wheeler market has had a perceptible shift from a buyers market to a sellers market
with a variety of choices. Players are competing on various fronts such as pricing,
technology, product design, productivity, sales process, after sales service, marketing and
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distribution. In the short term, market shares of individual manufacturers are sensitive to
capacity, product acceptance, pricing and competitive pressures from other manufacturers.
All the four segments, Motor Cycles, Scooters, Scooterettes and Mopeds have witnessed
capacity additions in the last one year and it will continue in the upcoming period as and
when the foreign companies opens a local subsidiary. Over this period as and when the
foreign companies opens a local subsidiary. Over this period, only the Motor Cycle
segment is expected witness higher demand vice-versa supply, while the Scooters,
Scooterettes and Mopeds supply will outstrip demand.
As incomes grew and people felt the need to own a private means of transport, sale of two-
wheelers raised. Penetration of the two-wheelers is expected to increase to approximately to
more than 25%by 2005.
The Motor Cycle segment will continue to lead the demand for two-wheelers in the coming
years. Motor Cycle sales are expected to increase by 20% as compared to 1% growth in the
Scooter market and 3% by Scooterttes and Moped sales respectively for the next two-years.
The Indian two and three wheeler industry produced and sold about 4.5million units in
2003-2004. Like any other Indian Industry, the policy environment guided and controlled
this segment of the industry as well. Licensing norms ruled the day till mid 80s. Access to
foreign technology inputs and foreign investment were strictly government controlled.
Since mid 80s, the Indian automobile industry was administered select doses of
liberalization. Foreign collaborations with equity up to 26%, fresh licenses and conditional
CKD imports, etc. were allowed. This liberalization coupled with the Indian market
potential attracted world majors like Honda, Yamaha, Suzuki and Piaggio setup their Joint
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Ventures during mid 80s in India. From 1991 onwards, the industry was de-licensed.
Automatic approvals for foreign equity up to 51% and equity participation in excess of 51%
with specific approvals entered the rulebook. Honda converted one of its Joint Ventures to a
51% subsidiary
On regulation front, Central Motor Vehicles Regulations mandates the safety, emissions and
other norms. Vehicular emissions standards came into effect first in 1991 and were
tightened further in 1996. For the two and three wheeler these are among the tightest in the
world. Further tightening has taken effect from April 2000.
The four-stroke Motor Cycle has added new dimensions to the two-wheeler segment. The
major players in the Motor Cycle market are Bajaj Auto Ltd. with its Pulsar DTS-i, Hero
Honda Co. with its Hero Honda Karizma. Competition is intense in all segments of the two-
wheeler industry with fuel efficiency and price being crucial considerations for success. In
the recent past, a manufacturers ability at product innovation and opening new market
niches have also been crucial for the growth of the industry. Bajaj Auto Ltd. entered the
Motor Cycle segment in the mid 80s. Since then it has won market shares increasing
indigenization and by opening new market niches for their products. Bajaj has emphasized
its higher safety and superior quality. Fuel efficiency allowed Hero Honda to dominate the
100cc Motor Cycle segment for most of the last eight years. Bajaj Auto Ltd. has gained
considerable market share in this segment since it also launched a four-stroke Motor Cycle
two years ago. The 100-cc segment is further power (dominated by Bajaj Pulsar DTS-i), fuel
economy and sub-segments. The semi-urban and rural markets will increase in importance
in the future and all manufacturers plan to launch heavier bikes with stronger suspensions.
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The relatively affordable and stable prices of Bajaj Motor Cycles backed by flexible loan
options have caused other Motor Cycles to continuously lose market share to them in the
previous few years.
Industry Structure
The Indian two-wheelers Industry can be broadly classified as scooters, motorcycles and
mopeds. The domestic two wheeler sales of 3.4mn in FY99 are constituted by these
segments as shown below.
Table showing the Industry Structure
Year Scooter Motorcycle Moped Total Growth %
FY92 769,955 428,118 408,022 1,606,095 -
FY93 709,725 379,060 414,567 1,503,352 (6.40)
FY94 840,173 472,582 457,471 1,770,226 17.75
FY95 1,033,524 652,012 523,700 2,209,236 24.80
FY96 1,223,425 809,527 627,079 2,660,031 20.41
FY97 1,301,051 978,682 683,756 2,963,489 11.41
FY98 1,262,699 1,131,314 648,842 3,042,855 2.68
FY99 1,325,868 1,395,657 681,902 3,403,427 11.85
FY2000 1,253,969 1,796,734 726,075 3,776,778 10.97
Source: SIAM
In the last six years, the domestic two-wheeler industry has seen structural changes. This can
be seen from the change in composition of two-wheeler sales, where the motorcycles have
consistently gained market share from the scooter and moped segments to corner a share of
41% of total two-wheeler sales. This trend is expected to continue in the next two years till
the four-stroke scooters make their presence felt in the segment. The table below gives an
idea about the strides made by the motorcycle segment in the last six years.
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Table showing Motor Cycle Segment from 1993 to 2000
(In %) Scooter Motorcycle Moped
FY93 47.2 25.2 27.6
FY94 47.5 26.7 25.8
FY95 46.8 29.5 23.7
FY96 46.0 30.4 23.6
FY97 43.9 33.0 23.1
FY98 41.5 37.2 21.3
FY99 39.0 41.0 20.0
FY2000 33.2 47.6 19.2
Source: SIAM
The scooter market is dominated by 150cc vehicles from Bajaj Auto and LML, with the rest
being served by 100cc variometric scooters from Kinetic Honda.
For scooters, northern India is the major market contributing nearly 46% of the total scooter
sales. Western and southern India take up second and third position with 27.5% and 15.7%
respectively.
For our calculations we consider TVS Scooty sales as part of scooter sales as given by
Society of Indian Automobile Manufacturers (SIAM).
The Indian motorcycle industry can be broadly categorized in to Indian motorcycles and
Indo-Japanese motorcycles. The Indo-Japanese motorcycle segment is dominated by Hero
group, Bajaj and Escorts in collaboration with Japanese vehicle manufacturers Honda,
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Kawasaki and Yamaha respectively. The Indian motorcycles segment is dominated by Bajaj
(M80), Escorts and Royal Enfield.
In motorcycles sales, western region leads with a market share of 40% of the total
motorcycle sales. South and north regions come second and third with a market share of
27.5% and 17.4% of total motorcycle sales respectively.
For mopeds southern and western regions of India are the major contributors with nearly
52% and 28% of the overall moped sales. Looking at the population of moped sales in south
it appears that the sale of mopeds has reached stagnation.
Western and southern region lead in three-wheeler sales with a contribution of 42% and
35.8% of total three-wheeler sales respectively.
In terms of two-wheeler vehicle population, Maharashtra stands first with a population of
2.96mn vehicles and Gujarat stands second with 2.64mn vehicles as on March 31st 1997.
Tamil Nadu is the third largest state with 2.45mn two-wheeler population.
In terms of three-wheeler vehicle population Maharashtra stands first with a population of
0.39mn and Gujarat in the second place with 0.22mn as on March 31st 1997.
Penetration of Two-Wheelers
On a base of around 28mn vehicles on Indian roads and around 175mn households, there
were only 160 motorized two-wheelers per thousand households in FY98. This compares
poorly with countries like Thailand where it is around 600 per thousand households. Also
with a household size of 5.5 persons and more than one wage earner in about 60% of the
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numbers of households in the middle, upper middle and high income groups, which form the
consumer base for two wheelers, have increased. Their share of the total number of
households has increased from 10.6% in FY88 to 20.5% in FY96. The rising income profile
has, however, been more pronounced in the urban areas as average annual growth in
industry has surpassed that of agriculture in the period FY93 to FY96.
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COMPANY PROFILE- HERO HONDA
Hero Honda Motors Ltd., the World No.1 two-wheeler company has registered a 16.38 %
growth in its cumulative sales for the period April-July 2006. The company sold a
remarkable 10, 68,006 units during the period as compared to 9, 17,617 units sold in the
corresponding period last year (April-July 2005). This is the fastest I million sales achieved
by the company.
During the month of July 2006, the company sold a total of 2, 35,314 two-wheelers
(including exports) as against 2, and 30,050 units in the corresponding month last year, thus
registering a sales growth of 2.3 %.
Exports during the month totaled to 10,575 units, marking a remarkable growth of 53.26%
over exports achieved during July 2005. The company had exported 6900 two-wheelers in
July 2005.
Hero Honda Pleasure, the companys first scooter venture sold 6,224 units in July 2006,
taking the total tally during the current FY to 28,324 units.
July 2006 also saw Hero Hondas flagship model, Splendor, being honored as the Most
Preferred Two-wheeler brand in India by CNBC Awaaz, one of the leading Hindi news
channels, as part of its Consumer Awards 2006. The results were based on a consumer
survey conducted jointly by CNBC Awaaz
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http://www.moneycontrol.com/india/news/OTHER%20NEWS/hero-honda%E2%80%99s-cumulative-sales-for-april-july%E2%80%9806-crosses-1mn/00/33/232135http://www.moneycontrol.com/india/news/OTHER%20NEWS/hero-honda%E2%80%99s-cumulative-sales-for-april-july%E2%80%9806-crosses-1mn/00/33/232135http://www.moneycontrol.com/india/news/OTHER%20NEWS/hero-honda%E2%80%99s-cumulative-sales-for-april-july%E2%80%9806-crosses-1mn/00/33/232135http://www.moneycontrol.com/india/news/OTHER%20NEWS/hero-honda%E2%80%99s-cumulative-sales-for-april-july%E2%80%9806-crosses-1mn/00/33/2321358/6/2019 Q Modified Project 2 July
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Mr. Brijmohan Lall Munjal
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $
2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the
Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government.
The joint venture between India's Hero Group and Honda Motor Company, Japan has not
only created the world's single largest two wheeler company but also one of the most
successful joint ventures worldwide.
During the 80s, Hero Honda became the first company in India to prove that it was possible
to drive a vehicle without polluting the roads. The company introduced new generation
motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill
it - Shut it - Forget it' campaign captured the imagination of commuters across India, and
Hero Honda sold millions of bikes purely on the commitment of increased mileage
Over 19 million Hero Honda two wheelers tread Indian roads today. These are almost as
many as the number of people in Finland, Ireland and Sweden put together!
Hero Honda has consistently grown at double digits since inception; and today, every
second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India
buys Hero Honda's top -selling motorcycle - Splendor. This festive season, the company
sold half a million two wheelers in a single month-a feat unparalleled in global automotive
history.
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Hero Honda bikes currently roll out from two globally benchmarked manufacturing
facilities based at Dharuhera and Gurgaon in Haryana. These plants together are capable of
churning out 3.9 million bikes per year. A third state of the art manufacturing facility at
Hardwar in Uttaranchal will soon be commissioned to cope with sustained customer
demand.
Hero Honda's extensive sales and service network now spans over 3000 customer touch
points. These comprise a mix of dealerships, service and spare points, spare parts stockiest
and authorized representatives of dealers located across different geographies.
Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda
Passport Program, one of the largest programs of this kind in the world, has over 3 million
members on its roster..'
Board of Directors
No. Name of the Directors Category of Directorship
1. Mr.Brijmohan Lall Munjal Chairman& Whole-time Director
2. Mr. Pawan Munjal. Managing Director.
3. Mr. Toshiaki Makagawa. Joint Managing Director.
4. Mr. Yutaka Kudo. Whole-time Director.
5. Mr. Prakash Munjal. Non-executive Director.
6. Mr. Sunil Kant Munjal . Non-executive Director.
7. Mr. Tasuhiro Oyama. Non-executive Director.
8 Mr.Masasahiro Takedagawa. Non-executive Director.
9. Mr. Takashi Nagai. Director.
10. Mr. Narinder Nath Vohra. Non-executive & Independent Director.
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11. Mr.Pradeep Dinodia. Non-executive & Independent Director.
12. gen.(retd.)Ved Prakash Malik Non-executive & Independent Director.
13. Mr.Analjit Singh. Non-executive & Independent Director.
14. Dr. Pritam Singh. Non-executive & Independent Director.
15. Ms.Shobhana Bhartia. Non-executive & Independent Director.
16. Dr. Vijay Laxman Kelkar. Non-executive & Independent Director.
Brand Ambassadors:
Hrithik Roshan
Harbhajan Singh
Sourav Ganguly
Zaheer Khan
Mohammad Kaif
Veerendra sehwag
Yuvaraj Singh
[
SALES PERFORMANCE
Aug'07 Aug'08 FY 07-08 FY 08-09
Total Sales 2,15,076 2,40,875 12,82,860 12,63,254
Business Description:
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Hero Group mainly manufactures motorcycles, mopeds, bicycles, components and
spare parts through about subsidiary companies.
Hero Honda survives the massive Indian two wheeler market with a range of motor
cycles notable for their price, four stroke technology, fuel economy and low level of exhaust
pollution.
Hero Group Exports Across continents
They export cycles, cycles components, motorcycles, mopeds more than countries.
The IT initiative of the group exports services to US, UK and Australia.
Major products and services
Hero group mainly manufactures two wheeler vehicles, spare parts and automatic
components.
The company subsidiaries offer the following products
a) Bicycles - Racer segment
- Children segment
- Ladies segment
b) Mopeds - Hero puch, Hero winner, hero turbo,
Hero envoy, Hero smart etc.
c) Motorcycles - Karizma, CBZ, Splendor, Splendor+,
Passion, Passion+, CD100, SS, CD Deluxe, Glamour,
Hunk etc..
d) Exercise equipments - Stepper, Jogger and Allegro exercise bike.
Top competitors are
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Bajaj Auto Ltd.
Honda Ltd.
Suzuki motors co-operation
LML Ltd.
Motor Industries Company Ltd.
YAMAHA
Subsidiaries are
Hero cycles Ltd.
Munjal Auto Industries Ltd.
Munjal Auto components.
Hero Global Design.
Highway Cycle Industries Ltd.
Achievements
2007
The NDTV profit car India & bike India awards 2007 in the following category:
Over all bike of the year CBZ X-treme.
Bike of the year CBZ X- treme.
Bike Technology of the year Glamour PGM F1.
Auto tech of the year glamour PGM F1 by overdrive magazine bike of the year
CBZ X treme by overdrive magazine.
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Ranked CBZ X-treme bike of the year-by B S motoring magazine.
2006
Adjudged 7th top Indian company by wall street journal Asia (top Indian two
Wheeler Company).
One of the 8 Indian companies to enter the Forbes top 200 list of worlds most
reputed companies.
No.1 in automobile industry by TNS corporate social responsibility award.
Best in its class awards for each category by TNS total customer satisfaction
awards2006:
Splendor plus (executive)
CD deluxe (entry)
Pleasure (gearless scooters)
Splendor & passion top two models in two-wheeler category by ET brand equity
survey 2006.
Adjudged 7th top Indian company by wall street journal Asia ( top Indian two
wheeler company.
Top Indian company in the automobile- two wheeler sector by dun& Bradstreet
American express corporate awards2006.
Awaaz consumer awards 2006.
Certificate of export excellence for outstanding export performance during 2003-04
for two- wheeler & three wheelers complete by engineering export promotion
council.
The NDTV profit car India & bike India awards 2006 in the following category:
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Bike maker of the year.
Bike of the year-achiever.
bike of the year-achiever( up to 150 category)
bike of the year-glamour (up to 125 category)
NDTV viewers choice award to glamour in the bike category.
2005
Awaaz consumer awards 2005 Indias most preferred two wheeler brand by CNBC
in the automobiles category.
Bike maker of the year award by overdrive magazine.
ICWAI National Award for Excellence in most management 2004 in the private
sector category by ICWAI.
10TH motilal oswal wealth creator award for as the most consistent wealth creator for
the period 1991-2005.
2004
Winner of the review 200- Asias leading companies award (3 rd rank amongst the
top 10 Indias companies.
GVC Level 1 (highest rating) by CRISIL for corporate governance
Adjudged as the best value creator-large size companies 2003-04 by the outlook
money.
Corporate excellence award 2004 by Indian institute of materials management.
Adjudged as the organization with innovative HR practices by HT power jobs for
HR excellence.
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Entrepreneur of the year award conferred upon the chairman, Mr.Brijmohan Mohan
Lall Munjal by Ernst & young.
Three leaves award for environment to hero Honda by centre for social &
environment green rating project.
2000
Environment performance award to hero Honda Dharuhera plant by Haryana state
pollution control board.
Environment management system of Gurgaon plant certified ISO 14001 by DNV
Holland.
Splendor declared world no.1 largest selling single two-wheeler model.
Sir Jahangir ghandy medal for industrial peace conferred upon the chairman,
Mr.Briji Mohan Lall Munjal by XLRI, Jamshedpur.
1999
Environment management system of Dharuhera plant certified with ISO 14001 by
DNV Holland
best productivity a ward for the best performance in automobile & tractor sector by
national productivity council presented by vice president of India.
1998
Business leader of the year conferred upon the chairman, Mr.Briji Mohan Lall
Munjal by business baron.
1997
Gurgaon plant inaugurated by Honda president.
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DEALER PROFILE (PHOENIX MOTORS)
PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS
PVT LTD. is established on 21st march 2003. The business is running by only one man.
The owner name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.
Generally the sale will be either on cash basis or on institutional basis. Bank like ICICI,
HDFC and CENTURION are providing loans to customers.
Advertising strategy of phoenix motors:
They are giving the ads through newspapers, wall paintings, hoardings and field staff. They
are upgrading sales by introducing the schemes, group bookings, institutional sales and
customer door-to-door activities.
Categorization of Staff members:
Staff members are categorized for technicians, 25 members are allotted for field staff, 5
members are recruited for sales for persons, 5 persons are placed for evaluating for spare
parts, 5 members are allotted for managerial accounts and another 3 persons for cash
transaction and other members are allotted for remaining work.
They entertain the showroom providing a customers huge having pool game, internet
facility and television with home there system. They provide bile maintenance programs on
every week.
According to other dealers PHOENIX motors in first in sales and best in service. They treat
customer, is the very important person at PHOENIX motors customer satisfaction is their
motto, why because, they will satisfied customer is the best advertisement. They provide
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Brach office dealer of the respective manufacture. For AMCO batteries and Dunlop and
falcon tires, tubes claims will be accepted at our authorized dealerships per the mutually
agreed terms and conditions between HERO HONDA and of these two OEMs in case the
claim is not accepted for invalid reasons. Then the claim along with the refusal note form
the OEM can be sent to the warranty section at gorgon plan after due to recommendation of
the area service engineer.
If any other six services or subsequent paid services is not availed as per the recommended
schedule given in the owners manual.
If HERO HONDA recommended engine oil is not used.
To normal wear & tear components like bulbs, electric wiring, filters, spark plug, clutch
plates, braded shoes, fasteners, shim washers, oil seals, gaskets, rubber parts (other than tyre
and tube) plastic components, chain$ sprockets and in case of wheel rim misalignment or
bend.
If there is any damage due o modification or fittings of accessories other than ones
recommended by HERO HONDA.
If the motor has been used in any competitive events like tracking races or rallies.
If there is any damage to the painted surface due to industrial pollution or other extraneous
factors.
For clams made for any consequential damage due to any previous malfunction.
For normal phenomenon like noise, vibration, oil seepage, which do not affect the
performance of the motorcycles?
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3.Did you hear about HEROHONDA bike?
S.NO OPTIONSNO OF
RESPONDENTSPERCENTAGE
1 Yes 95 95%
2 No 5 5%
TOTAL 100 100
Inferences:
By this pie-chart we can understand most of the respondents know about the
HEROHONDA bike.
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8) Which promotion activity gets your attention?
S.NO OPTIONSNO OF
RESPONDENTSPERCETAGE
1 Television ads 45 45
2 Newspaper ads 30 30
3 Hoardings 20 20
4 Pamphlets 5 5
Interference
According to the above bar chart the promotion activity attract the respondents that 45% are
to the Television ads and 30% are to the News papers ads.
9) Which aspect of promotion attracts you most?
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SL.NO OPTIONS RESPONSES PERCENTAGE
1 Quality 48 48%
2 Price 13 13%
3 Brand name 27 27%
4 Free service 12 12%
TOTAL 100 100
Source: customer survey (primary data)
Inferences:
From the above analysis we conclude that among 100 customers 48% of the
customers buy Herohonda basing on Quality, 13% basing on price, 27% basing
on brand and 12% on free service offer.
11. Since how long you have been using Herohonda bike?
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SL.NO OPTIONS RESPONDENTS PERCENTAGE
1 Good 95 95%
2 Average 5 5%
3 Poor Nil Nil
TOTAL 100 100
Source: customer survey (primary data)
Comfortness while driving
Inferences:
From the above analysis wee can conclude that out of 100 customers, 95% of the
customers felt good, 5% average ragarding the customers.
14. Why did you choose this specific dealer?
S.NO OPTIONS NO OF PERCENTAGE
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RESPONDNTS
1 convenience location 55 55
2 speedy service 30 30
3 open on convenient hours 15 15
TOTAL 100 100%
Inferences:
From the above analysis we conclude that 55% of the customers are choosing
convenient location, 30% of the customers are choosing speedy service and 15% of the
customers are for open on convenient hours.
15.Are you satisfied with the courtesy and friendliness of service personal?
SL.NO OPTIONS RESPONSE` PERCENTAGE
1 Completely satisfied 36 36%
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5.Majority of the respondents want Hero Honda to promote their products through free
service after sales and advertising.
6.It is observed by the above survey that promotion provogues respondents to buy a
product especially through TVs and new papers.
7.It is found that respondents feel that brand image is the best way to promote a product.
8.It is found that majority of the customers purchase Hero Honda products because of
the quality and mileage.
9. is found that majority of the respondents have been using Hero Honda bike up to 3-6
years and some respondents more than 6 years.
10.Most of the respondents are satisfied and comfortable with Hero Honda bikes.
11.Most of the respondents feel that it is available in the convenient location.
12.Majority of the respondents satisfied with the convenience and friendliness of service
personnel as well as infrastructure and lounge facilities.
CONCLUSION
From project conclude that promotion of any service can be successfully executed
by creating awareness through word of mouth and by maintaining the service according to
Advertising and Sales Promotional Activities.
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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 motor cycle model-"CD100SS"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
1998
2,000,000th motorcycle produced
1999
New motorcycle model - "CBZ" introduced
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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
4,000,000thmotorcycle produced. Environment Management System of Gurgaon
Plant certified ISO-14001 byDNV 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
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
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"Bike Technology of the Year" - Glamout PGM FI
"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine
"Bike of the Year" - CBZ X-treme by Overdrive Magazine
Ranked CBZ X-treme " Bike of the Year" - by B S Motoring Magazine
Most Trusted Company , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS
Voice of the Customer Awards 2006.
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
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QUESTIONNAIRE
Survey On Promotional Activities Of Hero Honda Motors
Customer Profile
Name : ________________________________________________ Age : ________________________________________________ Sex (m/F) : ________________________________________________Occupation : ________________________________________________Marital status : ________________________________________________Address : ________________________________________________Mobile No : ________________________________________________
1) Income per month? [ ]
a) Less than 6000K b) 6001K -10000Kc) 10001K-15000K d) Above 15000K
2) Do you have Bike? [ ]
a) Yes b) No
3) Did you hear about HEROHONDA Products? [ ]
a) Yes b) No
4) Are you using HEROHONDA Products? [ ]
a) Yes b) No
5) How do you came to know aboutHEROHONDA Products? [ ]
a) Electronic media b) Print media
c) Sales person d) others ( )
6) What way you think promotion ofHEROHONDA Products Should be done? [ ]
a) Offers b) Advertisement
c) Free Service d) others ( )
7) Does promotion makes you to buy a new product? [ ]
a) Yes b) No
8) Which promotion activity gets your attention? [ ]
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a) News Paper Ads b) Television Ads
c) Hordings d) Pomplents
9) Which aspect of promotion attracts you most? [ ]
a) Punch line b) Brand Image
c) Brand Ambassidor d) Features
10) Which following future made you to buy Herohonda? [ ]
a) Quality b) Price
b) Brand Name d) Free service
11) Since how long you have been using Herohonda bike? [ ]
a) Less than 1 year b) 1 to 3 years
b) 3 to 6 years d) above 6 years
12) Are you satisfied with the Performance of your bike? [ ]
a) Strongly satisfied b) Satisfied c) Not satisfied
13) How comfortable are you while using your bike ? [ ]
a) Excellent b) Very Good
c) Good d) Average
14) Why did you choose this specific dealer? [ ]
a) Convenient location b) Speedy service c) Open on convenient hours
15) Are you satisfied with the courtesy and friendliness of service personal? [ ]
a) Completely satisfied b) Satisfied c) Not satisfied
16) Are you satisfied with infrastructure and customer lounge facilities? [ ]
a) Completely satisfied b)Satisfied c)Not satisfied
17) Are you getting clear explanation of the service performed and charges at the
time of delivery? [ ]
a) Yes all the time b) Mostly c) Sometime
Feedback of the Respondent
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
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BIBLIOGRAPHY
Books referred : Marketing Management - Philip Kotler
Modern Management - R.S.N.Pillai
News Papers : The Hindu
The Economic Times
Deccan Chronicle
The Times of India
WebsiteS : www.herohonda.com.
www.autoindia.com
www.bikeworld.com
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