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INTRODUCTION
BRAND INTRODUCTION:
Branding is centuries old. Brick-makers in ancient Egypt placed
symbols on their bricks to identify their products. Brand names, however,
first appeared in the early 16th century, when Whisky Distillers shipped
their products in wooden barrels with the name of the producer burned or
branded on the top of each brand.
The brand concept evolved in the 18th century as the names and
pictures of animals, place of origin, and famous people began replacing
many of the producer’s names. The new purpose was to strengthen the
association of brand names with product. Producers wanted both to make
their products easier to remember and to differentiate their products from
that of their competitors.
In 19th century, brand was used to enhance a producer’s perceived
value through such associations. The purpose and strategies of branding
have evolved even further in the 20th century. The concept of brand equity,
however, has received much attention recently.
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Brand equity form an individual customer perceptive is reflected by
the increase in attitudinal strength for a product using that brand. Three
elements are essential in building a strong brand with the consumer: apositive brand evaluation, an accessible brand attitude and consistent brand
image.
Branding is an essential element of product strategy. Brands serve
important communication function, and doing so, establish beliefs among
consumers about the attributes and general image of the product. After a
brand has been established, the brand name, logo and trademark serve to
remind and reinforce the beliefs that have been formed. To reach this stage,
the firms must have made good on their promises.
Extend to which a brand or brand name is recognized by potential
buyers, and correctly associated with the particular product in question.
This is a general term that describes the services offered by most
search engine marketing companies. Search engine promotion is the process
of increasing rankings, traffic and brand awareness resulting and search
engines.
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The degree to which the objectives of an advertisement or advertising
campaign have been achieved; the effectiveness is commonly gauged be
measuring the effect on sales, brand awareness, brand preference etc.
Awareness the percentage of population or target market who are
aware of the existence of a given brand or company.
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INDUSTRY PROFILE
EVOLUTION OF TWO WHEELER:
Around the turn of the 20th century, bicycle racing was big in the USA
Bicycles would race around big curved tracks called velodromes aided by
pacing machines powered by internal combustion engines. These pacers
were made in Europe and often broke down. A young designer named Oscar
Hedstrom built his own American pacer. He met up with a racer named
George Hendee who had his own bicycle manufacturing plant in Springfield,
MA. The two combined forces and created a bicycle powered by an engine
developed by Hedstrom. Thus was born the Hendee Manufacturing
Company and the Indian motorcycle. They chose the name Indian since it
would signify an American product. George Hendee became known as the
Big Chief (B.C.) and Oscar Hedstrom became known as the Medicine Man.
The factory was called the Wigwam and the dealer network was called the
Tribe.
The company finally changed its name from the Hendee
Manufacturing Company to the Indian Motorcycle Company in 1923.The
first V-twins from Indian were produced in 1907. Hedstrom left the
company after a dispute in 1913, never to work in the motorcycle industry
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again. In another dispute within the newly formed company, Hendee also
left the company in 1916. Indian began making motorcycles in 1901 as the
Hendee Manufacturing Company. The first production model was in 1902and 143 units were produced.
In 1903 376 motorcycles were sold. It continued production through
1953 when it no longer made the classic Indian. In 1999 Indian motorcycles
were again produced, this time by the Indian Motorcycle Corporation. This
was not the same company but it did have rights to the Indian name and
trademarks.
We present here a look at Indian models from the first prototype
model in 1901 to the present as provided by About.com members. A gallery
called "58 Years of Indian" is provided that gives a picture and description
for each model year from 1901 to 2003. of this article discusses the founding
and early growth of the Indian Motocycle Company. Note the spelling here
of "motocycle" instead of "motorcycle." The term "motocycle" was an
archaic word used in the nineteenth century to denote any horseless carriage.
Indian wanted to distinguish itself from the competition by using the older
word.
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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 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, API dominated the scooter segment; Bajaj Auto
later overtook it. 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.
HERO HONDA 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
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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. 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 radiometric 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 cooperates. 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.
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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 likeincreased 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.
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.
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COMAPANY PROFILE
HERO HONDA MOTORS LTD.
Founded January 19, 1984 in Gurgaon, Haryana, India
Headquarters New Delhi, India
Key people
Brijmohan Lal Munjal, Founder
Mr. Brijmohan Lal Munjal, Chairman
Mr. Toshiaki Nakagawa, Joint Managing
Director
Mr. Pawan Munjal, Managing Director, CEO
Industry Automotive
Products Motorcycles, Scooters
HISTORY OF HEROHONDA:
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Hero Honda Motors Limited, based in Delhi, India, is the world's
largest manufacturer of motorcycles. Hero Honda is a joint venture that
began in 1984 between the Hero Group of India and Honda of Japan. It has
been the world's biggest manufacturer of 2-wheeled motorized vehicles
since 2001.
Hero Honda's Splendor is the world's largest selling motorcycle. Its 2
plants are in Dharuhera and Gurgaon, both in India. Third plant at Haridwar,
Uttranchal. It will have world class production facilities like Lean
Manufacturing concept, more flexible lines & Stream line material flow,
within & proximity (Planning to set vendors in nearby locating constituting
HHML Park). It specializes in dual use motorcycles that are low powered
but very fuel efficient.
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 more bikes. A third state of the
art manufacturing facility at Hardwar in Uttranchal will soon be
commissioned to cope with sustained customer demand.
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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.
Hero Honda two wheelers are almost as many as the number of people
in Finland, Ireland and Sweden put together.
HERO HONDA'S MISSION:
Hero Honda’s mission is to strive for synergy between technology,
systems and human resources, to produce products and services that meet
the quality, performance and price aspirations of its customers. At the same
time maintain the highest standards of ethics and social responsibilities.
This mission is what drives Hero Honda to new heights in excellence
and helps the organization forge a unique and mutually beneficial
relationship with all its stake holders.
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HERO HONDA'S MANDATE:
Hero Honda is a world leader because of its excellent manpower,
proven management, extensive dealer network, efficient supply chain and
world-class products with cutting edge technology from Honda Motor
Company, Japan. The teamwork and commitment are manifested in the
highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status.
“Hero” is the brand name used by the Munjal brothers in the year
1956 with the flagship company Hero Cycles. 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.
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.
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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 stockists 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. The program has
not only helped Hero Honda understand its customers and deliver value at
different price points, but has also created a loyal community of brand
ambassadors.
Having reached an unassailable pole position in the Indian two
wheeler market, Hero Honda is constantly working towards consolidating its
position in the market place. The company believes that changing
demographic profile of India , increasing urbanization and the empowerment
of rural India will add millions of new families to the economic mainstream.
This would provide the growth ballast that would sustain Hero Honda in the
years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda
Motors succinctly points out, "We pioneered India’s motorcycle industry,
and it's our responsibility now to take the industry to the next level. We'll do
all it takes to reach there.
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INITIATIVE:
An Environmentally and Socially, Aware Company At Hero Honda,
our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to
provide a high-quality service to all of its customers, Hero Honda takes a
stand as a socially responsible enterprise respectful of its environment and
respectful of the important issues. Hero Honda has been strongly committed
not only to environmental conservation programmes but also expresses the
increasingly inseparable balance between the economic concerns and the
environmental and social issues faced by a business: businesses must not
grow at the expense of mankind and man's future but rather must serve
mankind.
BOARD OF DIRECTORS- 15 -
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No. Name of the Directors Designation
1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director & CEO
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Sumihisa Fukuda Technical Director
5 Mr. Om Prakash Munjal Non-executive Director
6 Mr. Sunil Kant Munjal Non-executive Director
7 Mr. Masahiro Takedagawa Non-executive Director
8 Mr. Satoshi Matsuzawa(Alternate Director to Mr. TakashiNagai)
Non-executive Director
9 Mr. Pradeep Dinodia Non-executive & IndependentDirector
10 Gen.(Retd.) V. P. Malik Non-executive & IndependentDirector
11 Mr. Analjit Singh Non-executive & IndependentDirector
12 Dr. Pritam Singh Non-executive & IndependentDirector
13 Ms. Shobhana Bhartia Non-executive & IndependentDirector
14. Mr. Meleveetil Damodaran Non-executive & IndependentDirector
15. Mr. Ravi Nath Non-executive & IndependentDirector
16. Dr. Anand C. Burman Non-executive & IndependentDirector
Quality Policy:
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Excellence in quality is the core value of Hero Honda's philosophy.
We are committed at all levels to achieve high quality in whatever we do,
particularly in our products and services which will meet and exceed
customer's growing aspirations through:
Innovation in products, processes and services.
Continuous improvement in our total quality management systems.
Teamwork and responsibility.
Safety Policy:
Hero Honda is committed to safety and health of its employees and other
persons who may be affected by its operations. We believe that the safe
work practices lead to better business performance, motivated workforce and
higher productivity.
We shall create a safety culture in the organization by:
Integrating safety and health matters in all our activities.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work places.
Promoting safety and health awareness amongst employees, suppliers and
contractors.
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Brijmohan Lall, Chairman of Hero Honda, receives the Padma Bhushan
from the President A P J Abdul Kalam on Monday, March 28, 2005.
Dr. Brijmohan Lall Munjal has been conferred the prestigious Padma
Bhushan Award, for his contribution to the Trade and Industry, by the
President A P J Abdul Kalam at the investiture ceremony held at theRashtrapati Bhavan on 28.3.05.
Dr. Munjal is considered to have led Hero Honda from the front to
establish it as a ‘World No. 1’ two wheeler company. A true entrepreneur,
he set up Hero Cycles factory in 1956, which engaged in manufacturing
complete bicycles and went on to become the world’s largest bicycle
producer in 1986, a position it has held since then. In 1984 he started HeroHonda, the joint venture of Hero with Honda Motor Co. Japan. The
company heralded the two-wheeler revolution in India and became the
world’s largest two – wheeler
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MILESTONES OF HERO HONDA
Year Event
1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan
signed
Shareholders Agreement signed
1984 Hero Honda Motors Ltd. incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced
500,000th motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory
of founder Managing Director, Mr. Raman Kant Munjal
1994 New motorcycle model-"Splendor"introduced
1,000,000th motorcycle produced
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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
Environment Management System of Dharuhera Plant certified with
ISO-14001 by DNV Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the
memory of founder Managing Director, Mr. Raman Kant Munjal
2000 4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant certified ISO-
14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler
model
"Hero Honda Passport Programme" - CRM Programme launched
2001 New motorcycle model - "Passion" introduced
One million productions in one single year
new motorcycle model - "Joy" introduced
5,000,000th motorcycle produced
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2002 New motorcycle model - "Dawn" introduced
new motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh,
Harbhajan Singh and Zaheer Khan as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7 million
sales mark
Splendor has emerged as the World's largest selling model for the
third calendar year in a row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced
Hero Honda became the World No. 1 Company for the third
consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 millions
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles
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2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced
2006 Hero Honda is the World No. 1 for the 5th year in a row
15 million production milestone achieved
2007 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved
2008 Hero Honda Haridwar Plant inauguration
New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
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CD Deluxe lauched with power start feature
New 'Glamour' launched
New 'Glamour Fi' launched
2009 Hero Honda Good Life Program launchedHunk' (Limited Edition) launched
Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
Silver jubilee celebrations
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Awards & Recognitions
2010 Company of the Year awarded by Economic Times Awards for
Corporate Excellence 2008-09.
CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor
NDTV Profit Car & Bike Awards 2010
Two-wheeler Manufacturer of the Year
CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)
Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year
2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike
Awards 2009 and Passion Pro adjudged as CNB Viewers' Choice two-
wheeler
Top Indian Company under the 'Automobile - Two-wheelers' sector
by the Dun & Bradstreet-Rolta Corporate Awards
Won Gold in the Reader's Digest Trusted Brand 2009 in the
'Motorcycles' category
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NDTV Profit Business Leadership Awards 2009 - two-wheeler
category
2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins
the Coveted "NDTV Profit Business Leadership Award 2008"
Top Gear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV “Viewers’
Choice Award” to Hunk in Bike category
India Times Mindscape and Savile Row ( A Forbes Group Venture )
Loyalty Awards - “Customer and Brand Loyalty Award” in
Automobile (two-wheeler) sector
Asian Retail Congress Award for Retail Excellence (Strategies and
Solutions of business innovation and transformation) - Best Customer
Loyalty Program in Automobile category
NDTV Profit Car India & Bike India Awards - Bike Manufacturer of
the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
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No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme
2007 The NDTV Profit Car India & Bike India Awards 2007 in the
following category:
Overall "Bike of the Year" - CBZ X-treme
"Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Bike Technology of the Year" - Glamour PGM FI
"Auto Tech of the Year" - Glamour 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.
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
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world’s 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 Awards
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 Awards
Hero Honda Splendor rated as India's most preferred two-wheeler
brand at the Awaaz Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance
during 2003-04 for two-wheeler & three- wheelers - Complete (Non
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The NDTV Profit Car India & Bike India Awards 2006 in the
following category:
Bike Maker of the Year
Bike of the Year - Achiever
Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)
NDTV Viewers' Choice Award to Glamour in the bike category
2005 Awaaz Consumer Awards 2005 - India's 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 (Second) in Cost 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 - Asia's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies).
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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.
ICSI National Award for Excellence in Corporate Governance 2004
by The Institute of Company Secretaries of India.
2003 Winner of the Review 200 - Asia 's Leading Companies Award (3rd
Rank amongst the top 10 Indian companies).
Most Respected Company in Automobile Sector by Business World.
Bike Maker of the Year by Overdrive Magazine.
2002 Bike Maker of the Year by Overdrive Magazine.
Winner of the Review 200 - Asia 's Leading Companies Award (4th
Rank amongst the top 10 Indian companies).
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Company of the Year of ET Awards for Corporate Excellence.
Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd
in 'Best Financial Management' and 'Best Operational Efficiency'
category, ranked 6th in 'Overall Best Investor Relations' category, by
Asia money.
Highest Wealth Creating Company of the Year Award by the Money.
GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance.
2001 Bike Maker of the Year by Overdrive Magazine.
Winner of the Review 200 - Asia 's Leading Companies Award (9th
Rank amongst the top 10 Indian Companies).
Winner of Three Leaves Award for showing Corporate Environment
Responsibility in the Automobile Sector by Centre for Science &
Environment.
1999 National Productivity Award for the Best Productivity Award in the
category of Automobile & Tractor presented by Vice President of
India.
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1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on
being ranked 9th amongst the most investor rewarding companies in
India.
National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of
India).
PROMINENT AWARDS TO THE CHAIRMAN
Year Awards and Accolades
2009 'LMA-Sat Paul Mittal Lifetime Achievement Award' for the year 2008
SIAM Golden Jubilee Award for outstanding contribution in
automobile industry
Lifetime Achievement Award by ACMA
Lifetime Achievement Award by NDTV Profit Business Leadership
Awards 2009
PHD Lifetime Achievement Award 2009
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2006 'Lifetime Achievement Award' for Translating Excellence in
Corporate Governance into Reality by The Institute of Company
Secretaries of India
2005 Indian Automotive Hall of Pride by Overdrive
CNBC TV18 Commendation of Business Leadership displaying e
xtraordinary Corporate Leadership and Entrepreneurial Spirit
Padma Bhushan' by Government of India
Doctor of Letters (Honoris Causa) by Hemwati Nandan Bahuguna
Garhwal University, Srinagar Garhwal
Lifetime Achievement Award' by ET Awards for Corporate
Excellence
2004 Life Time Achievement Award for Management by All India
Management Association
D. Litt. (Honoris Causa) by Banaras Hindu University
Lifetime Achievement Award by Amity Business School
Lifetime Achievement Award by HT Power Jobs
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2002 Entrepreneur of the Year Award by Business Standard
Giants International Award to the Chairman in the field of Business &
Industry
Business Leadership Award by Madras Management Association
2001 Entrepreneur of the Year Award by Ernst & Young
2000 Sir Jehangir Ghandy Medal for Industrial Peace - by XLRI,
Jamshedpur
1998 Business Leader of the Year by Business Baron
1997 Distinguished Entrepreneurship Award by PHD Chambers of
Commerce & Industry
1995 National Award for outstanding contribution to the Development of
Indian Small Scale Industry (NSIC Award - Presented by President of
India)
1994 Businessman of the Year by Business India Group of Publications
1992 Honorary Membership - Indian Institution of Industrial Engineering
Award
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PROMINENT AWARDS TO THE MD & CEO
Year Awards and Accolades
2010 ‘Man of the Year' in the Indian Automotive Industry by NDTV Profit
Car & Bike Awards 2010
2009 ‘Man of the Year' by CNBC TV 18 Overdrive 2009 - Bike India
‘Power Personality’ for 2009
Award for Corporate Excellence in Vocation by Rotary International District
3010
India ‘Power Personality’ for 2009- 34 -
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To know about the performance of the hero Honda splendor + towards other
bikes.
NEED FOR THE STUDY
In the modern times the business organizations are adopting new techniques
and methods for the growth of business. The organizations are trying to
provide better services to their customers to face the competition. For every
business, it is not only important to retain the present customers but also to
attract the new customers. Brand Image plays a vital role to attract maximum
number of customers. So this study is concentrated to know brand awareness
of HERO HONDA Splendor+ among the customers.
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RESEARCH METHODOLOGY
PRIMARY SOURCE
Primary data is collected by personally interviewing the owners of all the
generators. Each member of the sample responded to the questionnaire.
Therefore the changes of distortion occurring in the communication process,
when the interview was answering the questionnaire, are very much reduced:
SECONDARY SOURCE- 37 -
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The secondary data is collected from company news letters magazines of the
process are population, sample frame, sampling unit and sample.
Profitability methods and company web site and is also collected,
automobile magazines and business newspapers were referred to collect the
data.
SAMPLE UNIT
For this study the main samples were the customers who are using the
product.
SAMPLE SIZE :
The sample size is 100.
SAMPLING AREA:
The study has been conducted in the Kurnool Town only.
PERIOD OF THE STUDY:
The period of the study is 45 days.
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LIMITATIONS
The period of the study is limited to 45 days.
Some respondents are not interested to give answers due to their busy works.
My study is limited to Kurnool only.
Time is major constraint to interact more customers of HERO HONDA.
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DATA ANALYSIS AND INTERPRETATION
Table 1:- Indicating the common mode of Transport
Sno Mode of
Transport
No of
Respondent
Percentage
Respondent
1 Car
5
5%
2 Bike 41 41%
3 Auto 11 11%
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4 Bus 40 40%
5 Others 3 3%
Interpretation: - From the above table it can be concluded that the number
of respondents who said that their mode of transport by Car is 5%, Bike is
41%, Auto is 11%, Bus is 40%, and lastly others are 3%.
- 41 -
No of Respondents
5
41
11
40
3
0
5
10
15
20
25
30
35
40
45
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Table 2:- Occupation of the people
Sno Occupation No of Respondent
PercentageRespondent
1. Student 20 20%
2. Employee 52 52%3. profession 15 15%
4. Business 13 13%
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No of Respondents
20
52
15 13
0
10
20
30
40
50
60
Student Employee profession Business
Student
EmployeeprofessionBusiness
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Interpretation: -
From the above table out of 100 samples it is clear that 20% are Students,
52% are Employees, 15% are profession, 13% are business mans.
Table 3:- Aware of HERO HONDA Splendor+
Sno Axare of HEROHONDASplendor+
No of Respondent
PercentageRespondent
1. Yes 96 96%
2. No 4 4%
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96
4
010203040506070
8090
100
Yes No
No of Respondents
YesNo
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Interpretation: - Out of 100 sample, 96% said that Aware of HERO
HONDA Splendor+ and 4% said that they don’t have Aware of HERO
HONDA Splendor+.
Table 4:- Sources of Information
Sno Factors No of Respondent
PercentageRespondent
1 News Papers 13 13%
2 Televisions 39 39%
3 Current Customers 16 16%
4 Friends/Relatives 30 30%
5 Others 2 2%
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Interpretation: -
From the above table it is clear that out of 100 samples, 13% customers
have collected the information about HERO HONDA Splendor+ through
News Papers, 39% of the people gathered the information through
Television, 16% of the people gathered the information through currentCustomers and 30% of the people gathered the information through
Friends/Relatives and 3% got from Others.
- 45 -
No of Respondents
13
39
16
30
205
1015202530354045
News Pap
ers
Televisi
ons
nt Custom
ers
nds/R
elative
s
Others
News PapeTelevisionsCurrent CuFriends/RelOthers
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Table 5:- People Owning Bikes
Sno Factors No of Respondent PercentageRespondent
1 Yes 95 95%
2 No 5 5%
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95
510
20
30
40
50
60
70
80
90
100
No of Respondents
Yes
No
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Interpretation: - Out of 100 sample, 95% said that they owned aMotorcycle and 5% said that they don’t own Motorcycle.
Table 6:- Different Brands of Bikes
Sno Factors No of Respondent PercentageRespondent
1 Pulsar 6
6%
2 Splendor + 70 70%
3 Victor 14 14%
4 Shine 3 3%- 47 -
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5 Others 7 7%
Interpretation: -
From the above table out of 100 samples it is clear that 6% are Pulsar
owners, 70% are Splendor+ owners, 14% are Victor owners, 3% Shine
owners and 7% belongs to some other Bike owners.
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No of Respondents
6
70
14
37
0
10
20
30
40
50
60
70
80
Pulsar Splendor
+
Victor Shine Others
Pulsar Splendor +Victor Shine
Others
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Table 7:- Factors influencing the purchase of HERO HONDASplendor+
Sno Factors No of Respondent
PercentageRespondent
1 Price 14 14%
2 Brand name 30 30%
3 Design 20 20%
4 Mileage 30 30%- 49 -
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5 Others 6 6%
Interpretation: - From the above table it is clear that 14% are Price
influenced Customers, 30% are influenced by Brand name, 20% are
influenced by Design, 30 % of Customers are influenced by Mileage and
other features influence 6%.
- 50 -
No of Respondents
14
30
20
30
6
0
5
10
15
20
2530
35
Price Brandname
Design Mileage Others
Price
Brand name
Design
Mileage
Others
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Table 8:- Awareness of Brand Features
Sno Factors No of Respondent
PercentageRespondent
1 Good Mileage 35 35%
2 Pick -up 24 24%
3 Design 14 14%
4 PowerfulHeadlight
9 9%
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Table 9: - Mileage given by HERO HONDA Splendor+ Bike
Sno Factors No of Respondent
PercentageRespondent
1 40-50 27 27%
2 50-60 40 40%
3 60-70 23 23%
4 Above 70 10 10%
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Interpretation: - From the above table it is clear that 27% of respondents
get 40-50kmpl mileage, 40% of respondents get 50-60 kmpl- mileage, 23%
of respondents get 60-70 kmpl mileage and 10 % of respondents get a
mileage of above 70 kmpl.
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27
40
23
10
0
5
10
15
20
25
30
35
40
40-50 50-60 60-70 Above 70
No of Respondents
40-5050-6060-70Above 70
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Table 10: -Expenditure on Splendor+ for month
Sno Expenses on
bike per
month
No of
Respondent
Percentage
Respondent
1 Below 100rs 2 2%
2 Rs.100-Rs.500 25 25%
3 Rs.500-
Rs.1000
60 60%
4 Above 1000rs 13 13%
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Interpretation: - From the above table it is clear that 2% of respondents get
Below100Rs expenses for month, 25% of respondents get Rs.100-Rs.500
expenses of month , 60% of respondents get Rs.500-Rs.1000 expenses for
month and 13 % of respondents get Above 1000 Rs expenses for month.
- 56 -
No of Respondents
2
25
60
13
0
10
20
3040
50
60
70
Below100rs
Rs.100-Rs.500
Rs.500-Rs.1000
Above1000rs
Below 100rs
Rs.100-Rs.500Rs.500-Rs.1000Above 1000rs
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Table 11: - Purchasing of HERO HONDA Splendor+ Bike in Future
Factors No of Respondent
PercentageRespondent
1 Victor
13
13%
2 Splendor + 58
58%
3 Shine 4
4%
4 Pulsar 15
15%
5 Others 10 10%
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Table 12: - Splendor+ is better than other competitive bikes
Sno Factor No of
Respondent
Percentage
Respondent
1 Brand Loyalty 40 40%2 Price 35 35%3 Services 15 15%4 Technology 10 10%
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No of Respondents
40
35
15
10
0
5
10
15
20
25
30
35
40
45
BrandPriceServicTechn
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Interpretation: -
From the above table it is clear that out of 100 samples 40% of the people
are stated that Brand Loyalty is better than other competitive bikes, 35% are
stated that Price is better than other competitive bikes, 15% are stated that
Services is better than other competitive bikes, and 10% of people are
Technology is better than other competitive bikes.
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Table 13: - Service offered by the company
Sno Satisfaction
level in
Services
No of
Respondent
PercentageRespondent
1 Excellent 51 51%2 Good 30 30%3 Average 13 13%4 Poor 5 5%5 Very poor 1 1%
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Interpretation: - From the above table it is clear that 51% Customers areSatisfy the excellent Services, 30% are Satisfy the good Services, 13% are
Satisfy the Average Services, 5% are Satisfy the poor Services and 1%
customers are Satisfy the very poor Services.
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No of Respondents
51
30
13
51
0
10
20
30
40
50
60
ExGoAvPoVe
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SWOT Analysis:
Strengths:
Ability to understand customer’s needs and wants.
Recognized and established brand name.
Maintenance cost is low
Resell value is high
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Company’s name is synonymous with fuel-efficient bikes and connectivity.
Weaknesses:
R & D is not close to the hero manufacturing plant
Hero is vulnerable in the joint venture because Honda Company has so
much power.
Brand name of hero itself has no influence in the automobile industry.
Opportunities:
Global expansion
Expansion of target market (include women)
Becomes India’s leader in the scooter market.
Relatively low rate of interest and the discount of prices offered by dealers
and manufacturers lead to the increasing demand for two wheeler vehicles.
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Large market for the high performance segment which is increasing with the
uplifment of the lifestyle of people.
Threats:
Honda motorcycles and scooters India can take away market share and joint
venture to go sour.
Bajaj motors are a strong competitor.
FDI announced in automobiles is 100%.
FINDINGS
Most of the respondents said that their common mode of Transport is Bike.
Majority of the Employees people using HERO HONDA Splendor+.
Most of the people are Aware of HERO HONDA Splendor+.
Majority of the customers of HERO HONDA Splendor+ said that they are
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Majority of the people have their own bike.
Majority of the people owned HERO HONDA Splendor+ Bike.
Majority of the people said that they are influenced by the Mileage and
brand name of the HERO HONDA Splendor+ in Purchasing of it.
It is clear that Majority of the Customers are influenced by the Good
Mileage.
Most of the respondents are spending Rs.500-Rs.1000 expenses for month.
Majority of the people interested to purchase HERO HONDA Splendor+
bike in future.
Majority of the people responded that Splendor+ is Brand Loyalty better
than other competitive bikes.
It is clear that Majority of the Customers are satisfied with the services.
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SUGGESTIONS
Company has to increase promotional activities to create awareness among
the customers.
Company has to take certain actions to increase the mileage of the bike.
Company has to increase the features of the bike.
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Price of the bike should be reduced to attract price sensitive buyers.
Various models and colors should be released.
Service provision to customers should be improved.
CONCLUSION
After completing the study it is clear that a majority of
respondents gave positive response on the “Brand Awareness of HERO
HONDA Splendor+”. However the company has got more range in their
brands and customer satisfactory level than their competitors. If the
company focuses more on the promotional aspects and the service aspects, it
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www. Hero Honda.com
www Google.com
www.wikipedia.com
Magazines:-
Business world
The economic times
News papers:-
Business line
The Hindu
QUESTIONNAIRE
Name: …………………………………………….
Address: ……………………………………………
……………………………………………
1. What is your common mode of transport
[ ]
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(a) Car (b) Bike (c) Auto (d) Bus (e) Others
2. Occupation
(a) Student (b) Employee (c) Profession (d) Business
3. Mention the different brands of bike you are aware of?
[ ]
_____________________________________
_____________________________________
_____________________________________
4. Are you aware of HERO HONDA bike?
[ ]
(a) Yes (b) No
5. How did you come to know about the HERO HONDA Splendor +?
[ ]
(a)News Paper (b) Television (c) Current Customer (d) Friends/Relatives
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6. Do you own a motorcycle?
[ ]
(a) Yes (b) No
7. Which Brand of motorcycle do you own?
[ ]
(a)Pulsar (b) Splendor + (c) Shine (d) Victor (e) Others
8. Which among the below features/factors influenced you most in
purchasing of HERO HONDA Splendor +?
[ ]
(a) Price (b) Brand name (c) Design (d) Mileage (e) others
9. with which features of SPLENDOR + do you satisfy more?
[ ]
(a) Good Mileage (b) Pick- up (c) Design (d) Powerful Headlight (e) Perfect
Balance
10. How much mileage (kmpl) is your bike giving?
[ ]
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(a) 40-50 (b) 50-60 (c) 60-70 (d) Above 70
11. Your expenditure on Splendor+ per month is
[ ]
a) Below 100 Rs. b) Rs.100-Rs.500 c) Rs.500-Rs.1000 d) Above 1000 Rs.
12. In future if you plan to purchase a motorcycle, which among the
following will you go for?
[ ]
(a) Pulsar (b) Splendor + (c) Victor (d) Shine (e) Others
13. In what way do you think Splendor + is better than other competitive
bikes?
[ ]
a) Brand loyalty b) Price c) Services d) Technology
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14. How are the services offered by the Company?
[ ]
a) Excellent b) Good c) Average d) Poor e) Very poor
15. What Suggestions would you like to offer for its improvement?
____________________________________________________
____________________________________________________
____________________________________________________
16. Do you recommend HERO HONDA bike to your friends/relatives?
[ ]
(a) Yes (b) No (c) Can’t say
(Signature)