Hero Motocorp Ltd.

For the Hero within

Atiesh Mehta

Rahul Keshavan

Rohan Chavan

Yash Shah

Yawar Mahimwalla

Vikas Sharma

Introduction

• Hero MotoCorp is more than a national brand• World’s largest two wheeler manufacturing

company• Wider choice of globally-benchmarked

products at competitive prices

Research

• Tools: – Primary data: Questionnaire

(Data collected outside the college.) Sample Size: 50 nos– Secondary data: Annual reports of the company from website of company.

Questionnaire1. Which bike you like the most? (a) Bajaj (b)TVS (c)Hero Motocorp (d) Yamaha (e) Others_______ 2. Which bike of Hero Motocorp you like the most?(a) CD Dawn (b) Splendor (c) Passion (d) Karizma (e) Others_______ 3. Do you own a Hero Motocorp Bike?(a) Yes (b) No4. If yes Which Hero Motocorp Bike? ________________________________________________________5. Why you brought Hero Motocorp Bike?Utility Vehicle (b) Status Symbol (c) Style 6. What ranking you would give to following features of Hero Motocorp bike?Fuel ConsumptionEngine CapacityAverageMileage7. Rate the Hero Motocorp bike on the level of satisfaction?Highly Satisfactory 1 ___2____3____4____5 Highly unsatisfactory8. How much you spend on servicing of Hero Motocorp Bike0-1000 (b)1000 -2000 (c) 2000-3000 (d) 3000-40009. Do you have faith on Hero Motocorp BrandYes (b) No

Share Holding Pattern

Share Holding pattern

%ge 360o

Promoters 52.21 187.95

MF 1.15 4.14

FI/ Banks 0.12 0.43

Insurance co 3.89 14.00

FII 32.79 118.04

Corporate Bodies 1.91 6.87

Indian Public 7.16 25.77

Others 0.77 2.77

52%

1%0%4%

33%

2% 7% 1%

PromotersMFFI/ BanksInsurance coFIICorporate BodiesIndian PublicOthers

Source: Annual Report 2010-2011

Which bike of Hero Motocorp you like the most?

CD Dawn Splendor Passion Karizma Others0

5

10

15

20

25

From bar diagram we can conclude that Splendor is most liked bike of Hero motocorp

Mean

• Mean is the mathematical average of set of numbers. The average is calculated by adding up two or more scores and dividing the total by the number of scores.

• Advantages: Finds the most accurate average of the set of numbers.

• Disadvantages: Outliers can change the mean a lot..Making it much lower/higher than it should be

MeanAge Group Number (f) Mid-point(x) Fx

20-24 28 22 616

24-28 10 26 260

28-32 8 30 240

32-36 4 34 136

50 1252

Mean is 25.04 Which Means data is collected from persons of average age of 25 Yrs.

X=Σfx n

Geometric MeanYear Return on

Average Capital Employed

At Base of 100

Logx

2010-2011 62.3% 162.3 2.2103

2009-2010 76.4% 176.4 2.2465

2008-2009 50.9% 150.9 2.1786

2007-2008 49% 149 2.1732

2006-2007 51.6% 151.6 2.1807

10.9893

Elogx = 10.9893/5 = 2.1979GM = Antilog(Elogx) = Antilog(2.1979)GM = 157.7 = 57.7%

Mode

• Mode is defined as the value which occurs maximum number of times i.e. having maximum frequency.

• Advantages: Allows you to see what value happened the most in a set of data. This can help you to figure out things in a different way. It is also quick and easy.

•Disadvantages: Could be very far from the actual middle of the data. The least reliable way to find the middle or average of the data.

ModeWhich bike you like the most f

Bajaj 10

TVS 7

Hero Motocorp 18

Yamaha 13

Others 2

Mode is a value which occurs maximum number of times that is having maximum frequency

Here we can see Hero Motocorp has maximum frequency of 18 which means Hero Motocorp bikes are used most amongst samples collected

Median

• Median is the measure of central tendency which appears in the middle of an ordered sequence of values. I.e. half of the observations in a set of data are lower than it and half of the observations are greater than it.

• Advantage: Finds the middle number of a set of data, so outliers have little or no effect.

• Disadvantage: If the gap between some numbers is large, while it is small between other numbers in the data, this can cause the median to be a very inaccurate way to find the middle of a set of values.

Median Price range

fcf

0-1000 05 05

1000-2000 26 31

2000-3000 15 46

3000-4000 04 50

Median class lies between 1000-2000

Median = L+ n/2 - (P.C.F) x i f

= 1000 + 25- 5 x 1000 26=1000+ 0.7692x1000=1769.20

It means positional average is 1769.20

Standard Deviation

• Standard deviation is by far the most important and widely used measure of studying variation.It shows how much variation or dispersion there is from the average (mean, or expected value). A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data points are spread out over a large range of values. It significance lies in the fact that it is free from defects which earlier method suffered and satisfies most of the properties of a good measure of variation.

Standard DeviationYears Profit After

Tax x-x (x –x)2

2010-11 9.9 -0.56 0.312009-10 14.1 3.64 13.252008-09 10.4 -0.06 0.002007-08 9.3 -1.16 1.352006-07 8.6 -1.86 3.46

52.3 18.37

SD = E(X-X)2

n

SD = 18.37/5

SD = 1.92

Skewness

• The term skewness refers to the lack of symmetry. When a distribution is not symmetrical it is called a skewed distribution. The measure of skewness indicates the difference between the manners in which observations are distributed as compared to normal distribution.

• In a symmetrical distribution the value of mean, mode & median are alike. In a skewed distribution the values differ in a positively skewed distribution if mean is greater than mode, and median lies between mean and mode. Ina negatively skewed distribution mode is greater than mean and the median lies between mean and mode.

Skewness

f x fxd= (x-a)/i d2 fd fd2 (fd)2

0-1000 05 500 2500 -1 1 -5 5 25

1000-2000 26 1500 39000 0 0 0 0 0

2000-3000 15 2500 37500 1 1 15 15 225

3000-4000 04 3500 14000 2 4 8 16 64

50 93500 18 36 314

How much you spend on servicing of Hero Motocorp ?

Mean =

Mean is Rs.1860

Max Frequency: 26, Modal Class: 1000-2000

Mode = l + __∆1__ x i ∆1 + ∆2

Mode = Rs. 1656.25

SD = ∑fd2 - ∑fd 2 X i n n

SD = 0.77 * 1000 = 770

Skewness = Mean – Mode SD

= 1860 -1656.25 770= 0.2646

Positively Skewed

Correlation• If 2 quartiles vary in such a way that movement in one is

accompanied by the movement in other, these quantities are said to be co-related.

• For e.g. there exists some co-relation between family income and expenditure on luxury items or the price of commodity and the demand. The statistical tool with the help of which relations between these variables is studied is called as co-relation.

• If one variable is increasing and other on an average is also increasing or if one variable is decreasing and the other on an average is also decreasing co-relation is said to be positive.

• On the other hand if the variables are varying in the opposite directions i.e. if one variable is increasing and the other is decreasing or vice-versa co-relation is said to be negative.

Correlation

• Correlation between Advertising Expenses & Sales.

Sales(x)in (000’s)

Advt (y) dx(x-a) dy(y-a) dx2 dy2 dx.dy

2010-11 5402 382.6 1680 133 2822400 17689 223440

2009-10 4600 364.97 878 115.37 770884 13310.24 101294.9

2008-09 3722 249.6 0 0 0 0 0

2007-08 3337 221.78 -385 -27.82 148225 773.9524 10710.7

2006-07 3336 241.43 -386 -8.17 148996 66.7489 3153.62

1787 212.38 3890505 31839.94 338599.2

Correlation = nEdx.dy-Edx.Edy nEdx2 –(Edx)2 . nEdy2 – (Edy)2

Correlation = 0.96

Scatter Diagram

3000000 3500000 4000000 4500000 5000000 5500000 60000000

50

100

150

200

250

300

350

400

450

Strongly Positive

Regression

• Regression analysis is described as explanation of unknown value of a variable with the help of known value of another variable

• There are two lines of regression– (1) y on x (2) x on y

Regression Sales(x) (in 000’s)

R&D (y) (in Crores)

x2 y2 Xy

2010-11 5402 32.15(2008-09) 29181604

1033.6225 173674.3

2009-10 4600 30.31(2007-08) 21160000

918.6961 139426

2008-09 3722 32.30(2006-07) 13853284

1043.29 120220.6

13724 94.76 64194888

2995.6086 433320.9

X = 13724/3 = 4574.66Y = 94.76/3 = 31.59

bxy = Exy/n –x y Ex2/n – x2

byx = Exy/n –x y Ey2/n – y2

bxy = 433320.9/5 - 144513.5094 64194888/5 - 20927514.12 = 0.0071byx = 433320.9/5 - 144513.5094 2995.6086/5 – 997.9281 =145.06

y on xy –y = byx(x-x)y= 145.06(x-4574.66)+31.59y = 145.06x-663568.59

x on yx-x = bxy(y-y) x = 0.0071(y-31.59)+4574.66x = 0.0071y +4574.44

Thank You