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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.

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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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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


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


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

Documents

Q Modified Project 2 July