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A PROJECT REPORT

ON

“A STUDY OF ADVERTISING AND SALES PROMOTION ACTIVITIES

OF HERO MOTO CORP COMPANY IN THE TWO WHEELER

MARKET”

FOR

HERO MOTO CORP

(DHRU AGENCY, BARDOLI)

Submitted to

THE MANDVI EDUCATION SOCIETY INSTITUE OF BUSINESS MANAGEMENT AND COMPUTER STUDIES

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Under

Gujarat Technology University

UNDER THE GUIDENCE OF

Faculty Guide Company Guide

MR. CHETAN DHIMMER

Submitted by

(DIPAK P. PATEL)

Enrollment No.: (138120592019)

M.B.A- SEMESTER III

THE MANDVI EDUCATION SOCIETY

M.B.A PROGRAMME

Affiliated to Gujarat Technological University

Ahmadabad

July 2014

MR. ASHISH PATIL

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ACKNOWLEDGEMENT

This Project work is written in accordance with the Master of Business Administration

course prescribed by The Mandvi Education Society M.B.A programmed for two

month project work.

A project of this nature involves the support of many people. I believe that

would be lacking in my duty if I do not express my sincere gratitude to them. With

all sincerity, I would like to express my gratitude to Dr. Rafique U.

Memon(Director, MBA). For giving an opportunity to undergo Corporate Exposure

and learning at Dhru Agency.

I am great thankful to the management of Hero Honda Agency for allowing me to

take training at their organization and giving all possible help and guidance during

the training period.

I am heartily thankful to Mrs. Smita Shah (Owner) for granting permission. I am

especially thankful to our external Guide Mr.Chetanbhai Dhimmer (General

Manager) and his colleague, for giving relevant and necessary guidance. I am all

thankful to all the officers for giving me warm support & providing me necessary

information and helped me. I am also thankful to the customer of Hero Honda

Agency for giving necessary information and filling questionnaire.

I would like to express my deep sense of gratitude to my project guide Mr.

Ashishpatil, without his guidance this project would not be made the way in which it

is. I am very thankful to him for his constant support and valuable guidance. I am

indebted to my family and friends for their kindly co- operation.

DIPAK P. PATEL

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DECLARATION

I DIPAK P. PATEL, hereby declare that the report for “Summer Training Project”

entitled “A STUDY OF ADVERTISING AND SALES PROMOTION ACTIVITIES OF

HERO MOTO CORP COMPANY IN TWO WHEELER MARKET” is a result of my

own work and my indebtedness to other work publications, references, i f any, have

been duly acknowledged.

PLACE: MANDVI

DATE: DIPAK P. PATEL

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EXECUTIVE SUMMARY

A project report contain the marketing research on “A study of advertising and

Sales promotion activities of Hero Moto Corp Company in two wheeler market”

This project is partial fulfillment of requirement of MBA 2nd semester in The Mandvi

Education Society. It was an opportunity to learn the practical aspect of industry.

Hero Moto Corp Ltd. Formally named Hero Honda is Indian motorcycle and scooter

manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint

venture between Hero Cycle of India and Honda of Japan. The company is the

largest two wheeler manufacturer in India. The 2006 Forbes 200 most respected

companies in list has hero Honda Motors ranked at 108.

In 2010, when Honda decided to move out of joint venture, Hero group brought the

share held by Honda. Subsequently, in august 2011 the company was renamed

Hero Moto Corp with new corporate identity. On 4th June 2012, Hero Moto Corp

approved a proposal to merge the investment arm of its parent Hero Investment Pvt.

Ltd.

During the fiscal year 2011-12, company sold 3.7 million bikes, a growth of 12% over

last year. In the same year company had 57% in the Indian market. On 1st June

2012, Hero Moto Corp reported its highest ever monthly sales at 5, 56, 664 units in

monthly in May, registered a growth of 11.28%.

According to my experience I found that overview about the Hero Moto Corp.

Different types of sales promotion and techniques used to promote and increase the

growth level of Hero Moto Corp. I found that majority of customers are satisfied with

the Hero bikes and advertisement and sales promotion activities of Hero Moto Corp.

Hero splendor Pro and Hero passion Pro of the cash cow of the Hero Moto Corp.

In this study I found that majority of the customers are satisfied with Hero bikes and

Hero have provide the good customer relation. I also found that pricing policy is also

the not expensive of Hero so customers easily purchase the bikes. In this study I

found that major customer of Hero bikes are youngster and students.

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TABLE OF CONTENTS

SR. NO. PARTICULARS PAGE NO.

CHAP-1 PART- I GENERAL INFORMATION

1.1 About the industry

1.2 World market

1.3 Indian market

1.4 About major companies in the industry

1.5 History of the selected company

1.6 Organizational chart

1.7 Functional departments

Marketing

Finance

SWOT Analysis

1.8 Product profile

CHAP -2 PART – II PRIMARY STUDY

Introduction of the study

2.1 Literature review

2.2 Problem statement and important of study

2.3 Objectives of the study

2.4 Limitations of the study

CHAP -3 Research methodology

3.1 Research design

3.2 Sources of data

3.3 Population

3.4 Data collection method

3.5 Sampling method

3.6 Sampling frame

3.7 Data collection instruments

CHAP -4 Data analysis and interpretation

CHAP -5 Findings

CHAP -6 Conclusion / recommendation

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Chapter

GENERAL

INFORMATION

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1.1 About Industry:-

India is the second largest producer of two-wheelers in the world. In the last few

years, the Indian two-wheeler industry has seen spectacular growth.Majority of

Indians, especially the youngsters prefer motorbikes rather than cars. Capturing a

large share in the two-wheeler industry, bikes and scooters cover a major segment.

Bikes are considered to be the favorite among the youth generation, as they help in

easy commutation.

Benefits of two wheelers

Two-wheelers are the most popular and highly sought out medium of transport in

India. The trend of owning two-wheelers is due to its-

Economical price

Safety

Fuel-efficient

Comfort level

Easy to ride

However, few Indian bike enthusiasts prefer high performance imported bikes. Some

of the most popular high-speed bikes are Suzuki Hayabusa, Suzuki Zeus, Karizma,

Bajaj Pulsar and Honda Unicorn. These super bikes are specially designed for those

who have a zeal for speedy drive.

India is the second largest producer of two-wheelers in the world. In the last few

years, the Indian two-wheeler industry has seen spectacular growth. The country

stands next to China and Japan in terms of production and sales respectively

Majority of Indians, especially the youngsters prefers motorbikes rather than cars.

Capturing a large share in the two-wheeler industry, bikes and scooters cover a

major segment. Bikes are considered to be the favorite among the youth generation,

as they help in easy commutation.

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1.2 World market:-

Hero Moto Corp Ltd. formerly known as Hero Honda is world’s largest Two-Wheeler

company having its registered office in India. The company started with a joint

venture between the Japanese Two Wheeler manufacturing company Honda in

1984, but in 2010 Honda decided to move out and Hero Cycle bought their shares

and became a new independent identity.

The new company which was renamed Hero Moto Corp in August 2011 is now the

world’s largest manufacturer of two – wheelers. The company has been working

intelligently and trying to utilize every opportunity to promote its new brand identity.

The Company started with a vision of empowering India by its bikes and making it a

mobile and much more empowered country by taking it to global market with its

world class bikes In the 1980’s Hero Honda introduced low cost and fuel efficient

bikes in India. The Japanese technology which came from their Japanese partner

“Honda” in the Hero motorcycles made it a huge hit in Indian market. The company

continued to use the same technology till they parted ways with Honda. The

company offers wide range of two wheelers including motorcycles and scooters.

With its three manufacturing plants located at Haridwar, Gurgaon and Dharuhera,

Hero churns out approx 3 million bikes in a year. Not only in manufacturing the

company is a real “hero” in customer service also with a huge network of about 3000

dealerships and service centers across country.

Source: - http://auto.indiamart.com/two-wheelers/hero-motocorp.html

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MACRO REALITIES AND PERSPECTIVES

Domestic and global factors ensured that economic growth slowed down significantly

during 2011-12 after two strong years. Global macroeconomic and financial

uncertainty, weak external demand, elevated level of prices, widening twin deficits

and falling investment combined to adversely affect the growth. Structural

weaknesses, in the form of policy uncertainty, inflation and rising interest rates

weakened the growth environment further.

Though India outperformed most of its peers in terms of growth, its potential and

actual growth slowed.

After tightening monetary policy till October 2011, the Reserve Bank paused hiking

policy rates, and affected a cut in March 2012. However, the growth rates remained

weak at the time of writing.

INDUSTRY PERFORMANCE

Despite the short term uncertainty in the economy, the increased consumer appetite

for two-wheelers is especially promising. According to the data received from

Census 2011, the share of Indian households owning two-wheelers spurted to 21%,

having risen from 12% indicated in Census 2001. Not surprisingly, the two-wheeler

industry continued to defy gravity and the base effect. During the year, more than

15.4 million two-wheelers were sold, recording a growth of 15% compared with 13.4

million units sold a year earlier. Each of the three industry segments posted double-

digit growth.

Continuing the trend witnessed in the last few years, scooters emerged as the

fastest growing segment in the two-wheeler industry. The segment grew 24% with

annual sales of 2.7 million, inching close to the 3-million mark, compared with 2.2

million scooters sold in the previous year. Motorcycle sales grew 14% to 11.9 million

units. Domestic motorcycle sales crossed the 10 million mark during the year,

compared with 9 million units sold earlier. Moped sales jumped 12% from over 0.70

million units to over 0.78 million units.

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BRAND IS REBORN

We launched our first bike under the Hero brand name; till date, three new models

have been launched. The Company's entire portfolio of products will get re-branded

by September 2012, well before the June 2014 deadline set for us.

In its solo flight, Hero has overcome the high-base effect of the previous year and

weathered the country's ongoing challenging business environment. It was a year in

which interest rates peaked, inflation remained stubbornly high, the rupee weakened

and consumer demand petered out. Even so, nearly six-and-a-quarter million

customers remained undeterred and reposed their faith in Brand Hero.

It was purely this faith of our customers, which enabled us to increase our market

share and outperform the industry. Well, it wasn't just our customers who

demonstrated their unrelenting faith in us. Our eyes and ears in the market – our

extensive dealer network – also showcased their unflinching support. In fact, we

began the year with over 4,700 touch points and gradually spread across the country

to end the year with over 5,100 touch-points.

This strong endorsement from our customers and channel partners is what

encouraged us to try and replicate the Hero success story overseas, especially in

markets similar to ours. Brand Hero is set to capture the nation's heart in the same

manner as Hero Honda did for as long as two-and-a-half decades

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COMPANY PERFORMANCE

In its new Avatar, the Company notched 15.41% growth in sales of over 6.23 million

units in this financial year compared to 5.40 million units for the last financial. During

the year, the Company not only retained its position as the World's largest Two-

Wheeler manufacturer Company but continued to lead with the domestic market

share of around 45% vis – a - vis 44% last year.

In the domestic scooter market, the Company sold over 0.41 million units of its

popular brand Pleasure — a 22% year-on year growth, with a market share of 16%.

It successfully launched a new 110cc scooter 'Maestro', strengthening a steadily

growing presence in the gearless scooter segment.

To summarize the monetary performance of the Company, the total sales (net of

excise duty) increased by 21.42% from INR 19,245 Crores in 2010-11 to INR 23,368

crores and similarly Net Income from Operations grew by 21.55% to INR 23,579

crores from INR 19,398 crores in 2010-11.

The Company's Earnings before Interest Depreciation and Taxes (EBITDA) margins

stood at 15.35% in 2011-12. Profit before Tax increased by 19.13% from INR 2,405

crores in 2010- 11 to INR 2,865 crores in 2011-12. The operating margin stood at

10.69% in 2011-12 as compared to 11.39% in 2010-11.The Company's Profit after

Tax (PAT) increased by 23.35% in 2011-12.

Source: - http://www.heromotocorp.com/en-in/investors/eventsnews

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1.3 Indian Market:-

Indian Two-Wheeler Industry: A Perspective

DriptoMukhopadhyay, Associate Fellow, NCAER1

Automobile is one of the largest industries in global market. Being the leader in

product and process technologies in the manufacturing sector, it has been

recognized as one of the drivers of economic growth. During the last decade, well¬-

directed efforts have been made to provide a new look to the automobile policy for

realizing the sector's full potential for the economy. Steps like abolition of licensing,

removal of quantitative restrictions and initiatives to bring the policy framework in

consonance with WTO requirements have set the industry in a progressive track.

Removal of the restrictive environment has helped restructuring, and enabled

industry to absorb new technologies, aligning itself with the global development and

also to realize its potential in the country. The liberalization policies have led to

continuous increase in competition which has ultimately resulted in modernization in

line with the global standards as well as in substantial cut in prices. Aggressive

marketing by the auto finance companies have also played a significant role in

boosting automobile demand, especially from the population in the middle income

group.

Evaluation of two wheelers 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

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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 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 share of scooters was 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.

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National Council of Applied Economic Research (NCAER) had forecast two-wheeler

demand during the period 2002¬-03 through 2011-12. The forecasts had been made

using econometric technique along with inputs obtained from a primary survey

conducted at 14 prime cities in the country. Estimations were based on Panel

Regression, which takes into account both time series and cross section variation in

data. A panel data of 16 major states over a period of 5 years ending 1999 was used

for the estimation of parameters. The models considered a large number of macro-

economic, demographic and socio-economic variables to arrive at the best

estimations for different two-wheeler segments. The projections have been made at

all India and regional levels. Different scenarios have been presented based on

different assumptions regarding the demand drivers of the two-wheeler industry. The

most likely scenario assumed annual growth rate of Gross Domestic Product (GDP)

to be 5.5 per cent during 2002-03 and was anticipated to increase gradually to 6.5

per cent during 2011-12. The all-India and region-wise projected growth trends for

the motorcycles and scooters are presented in Table 1. The demand for mopeds is

not presented in this analysis due to its already shrinking status compared to'

motorcycles and scooters.

It is important to remember that the above-mentioned forecast presents a long-term

growth for a period of 10 years. The high growth rate in motorcycle segment at

present will stabilize after a certain point beyond which a condition of equilibrium will

set the growth path. Another important thing to keep in mind while interpreting these

growth rates is that the forecast could consider the trend ti ll 1999 and the model

could not capture the recent developments that have taken place in last few years.

However, this will not alter the regional distribution to a significant extent.

Table 1 suggests two important dimensions for the two-¬wheeler industry. The

region-wise numbers of motorcycle and scooter suggest the future market for these

segments. At the all India level, the demand for motorcycles will be almost 10 times

of that of the scooters. The same in the western region will be almost 20 times. It is

also evident from the table that motorcycle will find its major market in the western

region of the country, which will account for more than 40 per cent of its total

demand. The south and the north-central region will follow this. The demand for

scooters will be the maximum in the northern region, which will account for more

than 50 per cent of the demand for scooters in 2011-12.

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Demand Forecast for Motorcycles and Scooters for 2011-12

2-Wheeler

Segment

Regions

South West North-

Central

East & North-

East All India

Motorcycle 2835

(12.9)

4327

(16.8)

2624

(12.5)

883

(11.1)

10669

(14.0)

Scooter 203

(2.6)

219

(3.5)

602

(2.8)

99

(2.0)

1124

(2.08)

The present economic situation of the country makes the scenario brighter for short-

term demand. Real GDP growth was at a high level of 7.4 per cent during the first

quarter of 2004. Both industry and the service sectors have shown high growth

during this period at the rates of 8.0 and 9.5 per cent respectively. However, poor

rainfall last year will pull down the GDP growth to some extent. Taking into account

all these factors along with other leading indicators including government spending,

foreign investment, inflation and export growth, NCAER has projected an average

growth of GDP at 6.7 per cent during the tenth five-year plan. Its mid-term forecast

suggests an expected growth of 7.4 per cent in GDP during 2004-05 to 2008-09.

Very recently, IMF has portrayed a sustained global recovery in World Economic

Outlook. A significant shift has also been observed in Indian households from the

lower income group to the middle income group in recent years. The finance

companies are also more aggressive in their marketing compared to previous years.

Combining all these factors, one may visualize a higher growth rate in two-wheeler

demand than presented in Table 1, particularly for the motorcycle segment.

There is a large untapped market in semi-urban and rural areas of the country. Any

strategic planning for the two-wheeler industry needs to identify these markets with

the help of available statistical techniques. Potential markets can be identified as well

as prioritized using these techniques with the help of secondary data on socio-

economic parameters. For the two-wheeler industry, it is also important to identify

the target groups for various categories of motorcycles and scooters. With the formal

introduction of secondhand car market by the reputed car manufacturers and easy

loan availability for new as well as used cars, the two-wheeler industry needs to

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upgrade its market information system to capture the new market and to maintain its

already existing markets. Availability of easy credit for two-wheelers in rural and

smaller urban areas also requires more focused attention. It is also imperative to

initiate measures to make the presence of Indian two-wheeler industry felt in the

global market. Adequate incentives for promoting exports and setting up of

institutional mechanism such as Automobile Export Promotion Council would be of

great help for further surge in demand for the Indian two-wheeler industry.

Source: http://auto.indiamart.com/two-wheelers

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1.4 Major Company’s in industry:-

Bajaj :-

India's second largest motorcycle company, Bajaj Auto has been at the helm of the

performance brigade in the country with its Pulsar and Avenger range of

motorcycles. Churning out non-stop upgrades and upping the bar in the premium

motorcycle category, Bajaj Auto has definitely struck a chord in the hearts of million

bikers in the country while at the same time bringing up the commuters up to pace

with higher capacity commuter products like the Boxer 150 and the Discover range.

Bikes:-Bajaj Avenger, Bajaj Discover, Bajaj Platina, Bajaj Pulsar

Hero:-

Country's leading bike-maker, Hero Moto Corp (previously known as Hero Honda) is

at the top of the game and is taking bold steps with its new-found identity bringing

enthusiastic models while taking home a chink of the large commuter segment

ixisting in India with its iconic Splendor and Passion models.

Hero Moto Corp Achiever, Hero Moto Corp Glamour, Hero Moto Corp Glamour PGM

Fi, Hero Moto Corp HF Dawn, Hero Moto Corp HF Deluxe, Hero Moto Corp

Hunk, Hero Moto Corp Ignitor, Hero Moto Corp Impulse, Hero Moto Corp

Karizma, Hero Moto Corp Maestro, Hero Moto Corp Passion Pro, Hero Moto Corp

Passion XPro, Hero Moto Corp Pleasure, Hero Moto Corp Splendor, Hero Moto Corp

Xtreme.

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Honda:-

The wholly owned subsidiary of Honda Motor Company, Japan, Honda Motorcycle &

Scooter India has amassed impressive numbers and credibility over the past decade

with some very successful models like the Activa scooter and the Honda Shine

125cc motorcycle. HMSI is currently the third largest two-wheeler company in India

and is steadily climbing up the ranks. And now with its third plant getting operational,

the long wait for its products also seems to be dropping effectively.

Bikes:- Honda Activa, Honda Aviator, Honda CB Trigger, Honda CB Twister, Honda

CB Unicorn, Honda CB Unicorn Dazzler, Honda CB1000R, Honda CBF

Stunner, Honda CBR 1000RR, Honda CBR150R, Honda CBR250R,Honda CBS

hine, Honda Dio, Honda Dream Neo, Honda Dream Yuga, Honda VFR.

Mahindra:-

The newest Indian two-wheeler company, Mahindra 2 Wheelers is working on

developing a foothold in the highly competitive Indian tw-wheeler bazaar. Currently

running only scooter models, the company will soon be launching motorcycles in

the market.

Bikes:- Mahindra Centuro, Mahindra Duro, Mahindra Duro DZ, Mahindra

Flyte,MahindraKine, Mahindra Pantero, Mahindra Rodeo RZ

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Royal Enfield:-

One of the oldest motorcycle companies in the world, Royal Enfield has swiftly

transformed into a lifestyle company with smart brand promotion and churning

out some really competitive products. Blending retro-charm with modern

technologies, Royal Enfield has an expanding base of buyers who will not settle

for anything less than the thump.

Royal Enfield Bullet 350, Royal Enfield Bullet 500, Royal Enfield Bullet

Electra, Royal Enfield Classic, Royal Enfield Thunderbird

Suzuki:-

After having exited its tie-up with TVS Motor, Suzuki entered the Indian market

by itself and has been doing fairly well in the Indian sphere with its three chief

offerings including the very popular Access 125 scooter. Alongside its volume

segment offerings, Suzuki has also brought its high-end superbikes via the CBU

route including the iconic Suzuki Hayabusa.

Bikes:- Suzuki Access, Suzuki Bandit, Suzuki GS150R, Suzuki GSX, Suzuki

Hayabusa, Suzuki Hayate, Suzuki Intruder, Suzuki Slingshot Plus, Suzuki

Swish

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TVS:-

South-based bike-maker TVS Motors has been holding decent ground in the

market with its range of scooters and motorcycles. Known for its quality of

parts and good reliability, TVS products dominate the Southern market in the

country along with growing presence in other zones.

Bikes:- TVS Apache RTR 160, TVS Apache RTR 180, TVS Flame, TVS

Jive, TVS MAX4R, TVS Phoenix, TVS Scooty Pep Plus, TVS Scooty

Streak, TVS Star City, TVS Star Sport, TVS Wego

Yamaha:-

Japanese biggie Yamaha is back on track with its premium products and has

accumulated enormous respect for its performance oriented motorcycles. With

exceptionally high part quality and superb engineering, Yamaha motorcycles are

known to be one of the first choices amongst the enthusiast buyers in the country.

Bikes:- Yamaha Crux, Yamaha Fazer, Yamaha FZ, Yamaha FZ1, Yamaha

Gladiator, Yamaha RAY, Yamaha Ray Z, Yamaha SZ, Yamaha VMAX,Yamaha

YBR, Yamaha YZF

Source:-http://www.zigwheels.com/newbikes

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1.5 History of the Company:-

Type: Public Company

Industry: Automotive

Establishment: January 1984 in Gurgaon, Haryana, India

Headquarters: New Delhi, India

Key people:Brijmohan. Lalmunjal (Founder Director and Chairman of PawanMunjal

(Managing Director & CEO)

Products: motorcycles and scooters

Revenue: 19,669.290 Crore {US$3.99 billion}

Parent: Hero Group

Website:www.heromotocorp.com

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Top Management:

Dr.BrijmohanLallMunjal.

"Don't dream if you can't fulfill your dreams''

BrijmohanLallMunjal is often fond of saying. The

founder and patriarch of the $3.2 billion Hero Group is

your classic first generation entrepreneur. He is man

who started small, dreamt big and used a combination

of grit and perseverance to create one of the country's

largest corporate groups and the World's No.1 Two

Wheeler Company.

Instinctive from a young age, BrijmohanLall made a rather unusual start in life.

Around the time when the freedom movement in India was taking shape in the late

1920s, he walked into a newly opened Gurukul (Indian heritage school) near his

home in Kamalia (now in Pakistan). He was only six years old then.

Thus began an extraordinary tale of courage and perseverance. Brijmohan began

his business story after partition in 1947, when he and his brothers relocated to

Ludhiana. The family set up a company that provided poor people with basic

transport (cycles). Three decades later, as India evolved; he added a second crucial

chapter - which visualized affordable and technologically superior transport to

millions of middle class Indians. The rest is history.

Vision, Mission of Company:

Hero Moto Corp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler

manufacturing company in India and also, the 'World No.1' two-wheeler company in

terms of unit volume sales in a calendar year. Hero Moto Corp Ltd. continues to

maintain this position till date.

Vision: The story of Hero Honda began with a simple vision - the vision of a mobile

and an empowered India, powered by its bikes. Hero Moto Corp Ltd., company's

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new identity, reflects its commitment towards providing world class mobility solutions

with renewed focus on expanding company's footprint in the global arena.

Mission: Hero Moto Corp's mission is to become a global enterprise fulfilling its

customers' needs and aspirations for mobility, setting benchmarks in technology,

styling and quality so that it converts its customers into its brand advocates. The

company will provide an engaging environment for its people to perform to their true

potential. It will continue its focus on value creation and enduring relationships with

its partners.

Strategy: Hero Moto Corp's key strategies are to build a robust product portfolio

across categories, explore growth opportunities globally, continuously improve its

operational efficiency, aggressively expand its reach to customers, continue to invest

in brand building activities and ensure customer and shareholder delight.

Manufacturing: Hero Moto Corp two wheelers are manufactured across three

globally benchmarked manufacturing facilities. Two of these are based at Gurgaon

and Dharuhera which are located in the state of Haryana in northern India. The third

and the latest manufacturing plant is based at Haridwar, in the hill state of

Uttrakhand.

Technology: In the 1980's the Company pioneered the introduction of fuel-efficient,

environment friendly four-stroke motorcycles in the country. It became the first

company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the

launch of the Glamour FI in June 2006.

Its plants use world class equipment and processes and have become a benchmark

in leanness and productivity.

Hero Moto Corp, in its endeavor to remain a pioneer in technology, will continue to

innovate and develop cutting edge products and processes.

Products:Hero Moto Corp offers wide range of two wheeler products that include

motorcycles and scooters, and has set the industry standards across all the market

segments.

Distribution: The Company's growth in the two wheeler market in India is the result of

an intrinsic ability to increase reach in new geographies and growth markets. Hero

Moto Corp's extensive sales and service network now spans over to 5000 customer

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touch points. These comprise a mix of authorized dealerships, service & spare parts

outlets and dealer-appointed outlets across the country.

Brand: The new Hero is rising and is poised to shine on the global arena. Company's

new identity "Hero Moto Corp Ltd." is truly reflective of its vision to strengthen focus

on mobility and technology and creating global footprint. Building and promoting new

brand identity will be central to all its initiatives, utilizing every opportunity and

leveraging its strong presence across sports, entertainment and ground- level

activation.

2011-12 Performance:Total unit sales of 54, 02,444 two-wheelers, growth of 17.44

per cent.

Total net operating income of Rs.19401.15 Crores, growth of 22.32 per cent

Net profit after tax at Rs. 1927.90 Crores.

Termination of Honda joint venture:

Main article: Hero Honda split

In December 2010, the Board of Directors of the Hero Honda Group has decided to

terminate the joint venture between Hero Group of India and Honda of Japan in a

phased manner. The Hero Group would buy out the 26% stake of the Honda in JV

Hero Honda. Under the joint venture Hero Group could not export to international

markets (except Sri Lanka) and the termination would mean that Hero Group can

now export. Since the beginning, the Hero Group relied on their Japanese partner

Honda for the technology in their bikes. So there are concerns that the Hero Group

might not be able to sustain the performance of the Joint Venture alone.

Hero Moto Corp:

The new brand identity and logo, Hero Moto Corp, was developed by the London

firm Wolff Olin’s. The logo was revealed on 9 August 2011 in London, the day before

the third test match between England and India.

Hero Moto Corp can now export to Latin America, Africa and West Asia. Hero is free

to use any vendors for its components instead of just Honda-approved vendors.

Company Performance:

During the fiscal year 2008-09, the company sold 3.7 million bikes, a growth of 12%

over last year. In the same year, the company had a market share of 57% in the

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Indian market. Hero Honda sells more two wheelers than the second, third and

fourth placed two-wheeler companies put together. Hero Honda's bike Hero Honda

Splendor sells more than one million units per year.

Hero Moto corp. Ltd formerly Hero Honda, is an Indian motorcycle

and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as

a joint venture between Hero Cycles of India and Honda of Japan. The company is

the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected

companies list has Hero Honda Motors ranked at #108.

In 2010, when Honda decided to move out of the joint venture, Hero Group bought

the shares held by Honda. Subsequently, in August 2011 the company was renamed

Hero Moto Corp with a new corporate identity. On 4 June 2012,Hero Moto

Corp approved a proposal to merge the investment arm of its parent Hero

Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its

split from Honda Motors.

Total unit sales of 54, 02, 444 two-wheelers, growth of 17.44 per cent

Total net operating income of INR 19401.15 Crores, growth of 22.32 per cent

Net profit after tax at INR 1927.90 Crores

Total dividend of 5250% or INR 105 per share including Interin Dividend of INR 70

per share on face value of each share of INR 2 each

EBIDTA margin for the year 13.49 per cent

EPS of INR 96.54

Recognition:

Logo of Hero Honda, as the company was known till Aug. 2011

The Brand Trust Report published by Trust Research Advisory has ranked Hero

Honda in the 13th position among the brands in India.

Hero Moto Corp was started in 1984 as Hero Honda Motors Ltd.

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1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

1975—Hero Cycles becomes largest bicycle manufacturer in India.

1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

Shareholders Agreement signed

1984—Hero Honda Motors Ltd. incorporated

1985—Hero Honda motorcycle CD 100 launched.

1989—Hero Honda motorcycle Sleek launched.

1991—Hero Honda motorcycle CD 100 SS launched.

1994 – Hero Honda motorcycle Splendor launched.

1997—Hero Honda motorcycle Street launched.

1999 – Hero Honda motorcycle CBZ launched.

2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition

launched.

2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor

plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle

Karizma launched.

2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*

launched.

2005—Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD

Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and

Hero Honda Scooter Pleasure.

2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of

Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle

Passion Plus and Hero Honda motorcycle Hunk launched.

2008—New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and Hero Honda motorcycle Passion Pro launched.

2009—New Models of Hero Honda motorcycle Karizma , Karizma – ZMR and

limited edition of Hero Honda motorcycle Hunk launched

2010—new Models of Hero Honda motorcycle Splendor Pro and New Hero

Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor

launched.

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2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ

Xtreme, Karizma launched. New licensing arrangement signed between Hero

and Honda. In August Hero and Honda parted company, thus forming Hero Moto

Corp and Honda moving out of the Hero Honda joint venture. In November, Hero

launched its first ever Off Road Bike Named Hero "Impulse".

2012-New Models of Hero Moto Corp Maestro the Musculine scooter and Ignitor

the young generation bike are launched.

2013-14–New Model of Hero Moto Corp Xtreme bike are launched.

Source: - http://en.wikipedia.org/wiki/Hero_MotoCorp#History

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1.6 Organizational Chart:-

OWNER

SALES

MANAGER

WORKSHO

P MANAGER

GENERAL

MANAGER

SHOWROO

M SALES

FIELD

SALES

SALES

OFFICERS

FIELD

OFFICERS

SUPERVIS

OR

FRONT

LINE SUPERVIS

OR

MECHANI

CS

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General Manager:

The general manager controls the all members in this agency. All the

managers and members of this agency they all are reporting to general

manager.

Sales manager:

He controls the sales activities of bikes. Here it includes that showroom sales

and field sales.

Workshop manager:

He saw the work of service department and what the work done in the

workshop. The mechanics reports to the supervisor and supervisor give report

to the workshop manager.

Sales officers:

He sells the bikes in the showroom.

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1.7 Functional Departments:-

1. Marketing Department

Organizational chart

More selling bikes: - Here in this company the most successful bike is

Hero Honda spender. But in now a day the Passion Pro and Splendor Pro

bikes are more selling in the market. The most of the buyers are preferred

this two bikes.

Market segment: - Here this agency will provide the three categories of

buyers. A, B and C. here the segment A will include the premium model

bikes, B include the medium level bikes and C will include the lower

segment bikes.

Main buyers of bikes: - The students and higher income persons are

preferred the Premium models of this company. It will include the CBZ

extreme, Karizma ZMR, Karizma R, Impluse, Hunk etc. here on other hand

the officers and professionals are preferred the middle level of Hero Moto

Corp company bikes. It will include the Passion Pro, Super splender, Ignitor,

Splendor Pro, Glamour and Splendor NXG. In third category the lower

income people or the small businessman are preferred this kind of bikes. It

will include the Delux, Splendor etc.

Distribution channel: - Here this company is the authorized dealer. So

here no distribution channel will be there. The buyers are come to the

agency and they are directly purchase the bike.

SALES EXECUTIVES

/ MANAGER

FIELD SALES

EXECUTIVES

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Marketing middleman: - Here the no marketing middlemen are there. The

company directly sells to their customers. If the customer will face some

payment problem then the agency will first confirmed the bank and then the

bank will come in the picture. Otherwise no marketing intermediaries are

there.

Advertising: - Here the company Hero will have done the advertizing. But

the dealers have no authority to done the any type of the advertisement.

Here they have only promoted their sale in their showroom. But they are not

giving any advertisement to outside their company.

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2. Finance Department

Organizational chart:-

Sources of funds:-Here the HDFC Bank and INDUS Bank will providing the

fund to the agency whenever they are required.

Accounting process:-

Papers are required to first complete. It will include the ID Proof and

residential book etc.

Loan sanction will be also cleared. So the agency will set the skim to

the buyers.

Delivery order will be there.

Bikes are delivered to the customers.

Bank payment will be there.

Close or service of bikes.

SALES

EXECUTIVES / MANAGER

FINANCE / BANK

CASHIER / DOWN

PAYMENT

PDI SUPERVISOR

ACCOUNTANT

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SWOT Analysis:-

Strength of the Hero Moto Corp Company:-

Ability to understand customer’s needs and wants.

Recognized and established brand name.

Effective advertising capability.

It’s after sales service

Maintenance cost is low

Resale value is high

Huge variety of products in every segment

Excellent distribution, over 3000 dealerships and service centers

Good advertising and excellent rebranding from Hero Honda to Hero Moto

Corp

Weakness of the Hero Moto Corp Company:-

Market share in premium segment is low.

People are concerned after brand migration regarding technology.

Opportunities of Hero Moto Corp Company:-

Global expansion in countries of Africa and South America.

Expansion of target market (include women, male scooter and trans road

bike).

Scooter market is increasing thus they can be India’s leader in scooter

market.

Financial help easily available to customers.

Relatively low rate of interest and the discount of prices offered by the dealers

and manufacturers lead to the increasing demand for two wheeler vehicles.

Large market for the high performance segment which is increasing with the

upliftment of the lifestyle of people.

Purchasing power has increased of customers.

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Threat of Hero Moto Corp Company:-

Honda motorcycles and scooters India has become aggressive and launching

products for mass market in 110cc eg. Dream yuga

Bajaj motors is a strong competition in premium segment

FDI announced in automobiles is 100%

Petrol prices are increasing thus sale of premium segment bikes may

decrease

Aluminum and steel prices will increase.

Strong competition from Indian as well as international brands

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1.8. Product Profile:-

Hero Moto Corp Karizma ZMR FI:

Hero Moto Corp Karizma is a sporty bike with updated technological inputs which

makes it favorite among bike enthusiasts. This top-end bike from the Hero Moto

Corp stable targets the niche section of customers who prefer performance to

economy. It is impeccable on straights and cornering and an accomplished bike in

ride and handling. While moving on roads, the sleekly designed bike is an instant

eye catcher.

Specification:-

Manufacture Hero Moto Corp

Price 1,02,530

Production Since 2007

Predecessor Hero Honda Karizma

Successor Hero Honda Karizma ZMR FI

Class Standard

Transmission 5 speed

Brakes front- 276/260mm (disk), Rear- 130/230mm (drum/disk)

Wheelbase 1355mm

Weight 158 kg

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Hero Moto Corp Karizma R:-

Specification:-

Engine Displacement (CC) 223

Engine Type Air cooled, 4-stroke single cylinder OHC

No Of Cylinders 11

Power 17.2

Torque 8.35

Fuel Type Petrol

Drive Type Chain

Price 81,880

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Hero Moto Corp CBZ X-Treme:

Main article: Hero Honda CBZ Xtreme

In 2007, a new variant featuring the existing Honda Unicorn's 149 cc engine was

introduced. This was priced higher than the company's Achiever model.

Nevertheless, this bike did not feature a mono-shock suspension.

The bike has undergone a major visual makeover in late 2008 and is the more

expensive 150 cc offering from Hero Honda compared to the Hunk, which features

the same power train

Specification:-

Manufacturer Hero Moto Corp

Parent company Honda

Engine type Air cooled, 4-stroke single cylinder OHC

Transmission 5 speed constant mesh

Class Tabular, diamond type

Length 2080 mm

Wheelbase 1325 mm

Height 1145 mm

Weight 148 kg

Price 72,630

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Hero Moto Corp Hunk:-

Hero Moto Corp Hunk is a 150 cc motorcycle launched by Hero Honda Motors India

Ltd in October 2007. It is offered in two variants, kick-start and self-start.

Specification:-

Manufacturer Hero Moto Corp

Production October 2007

Price 71,200

Engine 149.2 cc

Top speed 112km/h

Transmission 5 speed manual

Suspension gas charge bi shock

Wheelbase 1340 mm

Fuel capacity: 12.2 liters

Oil capacity 1 liter

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Hero Moto Corp Passion X Pro:-

Specification:-

Engine type Air cooled, 4 stroke single cylinder OKC

Displacement 109.1 cc

Transmission 4 speed constant mesh

Brakes Disc 240 mm dia

Battery 12 v -3 Ah, MF battery

Reserve 2.1 liters

Wheelbase 1265 mm

Saddle height 785 mm

Kerb weight 113 kg

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Hero Moto Corp Ignitor:-

Specification:-

Engine type Air cooled, 4 stroke single cylinder OHC

Displacement 124.7 cc

Transmission 5 speed constant mesh

Brakes Disc 240 mm

Battery 12 v -3 Ah, MF battery

Length 2010 mm

Width 710 mm

Height 1095 mm

Wheelbase 1270 mm

Reserve 1.4 liters

Hero Moto Corp Splendor Pro:-

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Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 97.2 cc

Transmission 4 speed constant mesh

Battery MF battery

Length 1970 mm

Width 720 mm

Height 1040 mm

Wheelbase 1230 mm

Reserve 1.4 liters

Hero Moto Corp Super splendor:-

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Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 124.7 cc

Transmission 4 speed constant mesh

Battery MF battery

Maximum speed 90 kmph

Clutch Multi plate wet type

Starting Self start

Wheelbase 1265 mm

Fuel tank capacity 13 liters

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Hero Moto Corp Impulse:-

Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 149.2 cc

Gears 5 speed constant mesh

Battery 12 v – 4Ah, MF battery

Brakes Dia 240 mm Disc

Rear Swing arm with Moto suspension with nitrox

Wheelbase 1360 mm

Fuel tank capacity 11.1 liters

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Hero Moto Corp Splendor NXG:-

Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 97.2 cc

Gears 4 speed constant mesh

Battery 12 v – 3 Ah MF battery

Starting Kick start / self start

Rear Swing arm with adjustable hydraulic shock absorber

Wheelbase 1235 mm

Fuel tank 9.5 liters

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Hero Moto Corp Splendor plus:-

Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 97.2 cc

Gears 4 speed constant mesh

Battery 12 v 2.5 Ah

Rear Swing arm with hydraulic shock absorbers

Wheelbase 1230 mm

Fuel tank capacity 11 liters

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Hero Moto Corp HF-Deluxe:-

Specification:-

Engine type Air cooled, 4 – stroke single cylinder OHC

Displacement 97.2 cc

Gears 4 speed constant mesh

Battery MF battery, MF 12 v -3h

Starting Kick start / self start

Length 1965 mm

Wheelbase 1235 mm

Fuel tank capacity 10.5 liters

Sources: -http://compare.pricesofindia.com/showroom/hero-motocorp

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Chapter 2

PRIMARY STUDY

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2.1 Literature review:-

Today as we know that the growth of the two wheeler automobile sector industry is

to high and due to this a very high level of competition is there, many domestic and

foreign companies has introduce their plants and factories around the countries and

different cities so not at all the easy task to start two wheelers automobiles company.

Today most of all products which are available to the buyers have a number of

alternatives, while they are taking purchasing decision. The aim of marketer is to

meet and satisfy target customer’s need and wants, the field of consumer behavior

studies, how individual, groups and organization select, buy, use, and dispose of

goods, services, ideas and experience to satisfy their need and desire.

The two-wheeler market comprises the largest segment of the domestic auto

industry in terms of absolute numbers. From a semi luxury product for the urban

middle class in the eighties and earlier, the two wheelers has now become not only

the favorite mode of personal transport but also the most coveted personal

household durable possession among nearly all consumer classes, except perhaps

the most affluent. The leading vehicle in the two-wheeler segment is the stylish, fuel-

efficient and sturdy 4-stroke motorcycle the purchase of which is influenced by

various factors like social, economic and technological factors.

A two-wheeler purchase is influenced by several factors like social, economic,

technological and aesthetic factors. Marketers do not take these factors into

consideration for marketing their two-wheelers for lack of awareness. Hence, an

attempt has been made to investigate into those factors that are responsible for the

influence of a two-wheeler purchase decision and to determine the most important

promotional tool which a buyer thinks would influence his or her two-wheeler

purchase decision.

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According to Alexander Preko

This study is on sales promotion and its effects on advertising revenue of TV Africa,

Ghana. The study focuses on how sales promotion is used to generate revenue, how

it is done, the common sale promotion tools and strategies adopted by the company,

and to find out if sale promotions increase advertising revenue. Sales promotion is

an important component of any organization’s overall marketing strategy alongside

advertising, public relations, and personal selling. The study is significant because, it

contributes to new knowledge by filling and reducing the gap that exist in the

understanding of sales promotion by management and other stakeholders in the

media network business. It also serves as source of references to other researchers

in this field. A descriptive research design was applied to describe sale promotion

activities of the organization. The sample size employed 41 respondents from TV

Africa. Questionnaires were administered to the sampled population to collect

primary data and an interview was also conducted with management to get some

key information which is needed for this study. However, the study made use of

simple random sampling in selecting the clients, purposive sampling for

management and employees in marketing, accounts and operation departments.

The result of the study indicated that guarantees and warranties, souvenirs,

discounts offer and give away are the mostly adopted sales promotion tools by TV

Africa. Chi-square test is used to check the significant of sale promotions to

increasing advertising revenue. It was concluded that management should continue

modifying or updating its sales promotion activities according to the taste and

preferences of its customers and the public at large.

Source: Journal of Emerging Trends in Economics and Management Sciences

(JETEMS) 3 (2): 141-146, Scholar link Research Institute Journals, 2012 (ISSN:

2141-7024) jetems.scholarlinkresearch.org

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Sales promotion has grown substantially in recent years. There are several reasons

for this dramatic growth in sales promotion. First, consumers have accepted sales

promotion as part of their buying decision criteria. It provides reluctant decision

makers with an incentive to make choices by increasing the value offered by a

particular brand. Second, the increasing tendency of businesses to focus on short-

term results has helped spur growth in sales promotion, which can provide an

immediate boost in sales (Adrian, 2004). Product managers also lend to view sales

promotion as a way to differentiate their brand from that of competitors in the short

term (George, 1998 and Beri, 2006). Third, the emergence of computer technology

has enabled manufacturers to get rapid feedback on the results of promotions.

Redemption sales for coupons or figures on sales volume can be obtained within

days. Finally, an increase in the size and power of retailers has also boosted the use

of sales promotion. Historically, the manufacturer held the power in the channel of

distribution. Mass marketers utilized national advertising to get directly to consumers,

creating a demand for the heavily advertised brands that stores could not afford to

ignore. With consolidation and the growth of major retail chains, however, retailers

have gained the power to demand incentives from manufacturers to carry their

products. Many sales promotions are designed to provide benefits to the retailers

(Berenson, 2004 and Bagavathi, 2007).

According to FaitiraManuere, Edison Gwangwava and KudakwasheGutu

The aim of this paper is to establish if sales promotion techniques to be adopted at

any given time affect the company’s sales volume and also to look at the effect of

sales promotion on company performance. To that end, the survey approach is

adopted. The simple random technique is used to ensure that all members of the

population have an equal chance of being selected. The chi-square approach is

used to test hypothesis and to establish the effect of sales promotion on company

performance. The findings of the study reveal that the majority of the respondents

agreed that sales promotion affects organizational performance and sales volume of

the organization. To that end, organizations should make sales promotion as a

critical component of a small business marketing strategy. Therefore the use of

effective and efficient sales promotion campaign that arouses consumers’ interest to

make repeated purchases is a prerequisite.

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Source: Achumbalheanyi (2002).Sales Management Concepts, Strategic and

Cases. AI-Mark Education Research.

According to Dr. B. Rameshwaran

This study investigates and explores the relationship between variables which affect

consumer behavior on advertising and sales promotion for used two wheelers in

Pune city. It also attempts to understand used two wheeler market in India.

Questionnaires were distributed to respondents living in Pune city who have

purchased the used bikes. The total sample consists of 84 respondents. Chi-square

was used to test the hypotheses. The result of this study provides evidence and

insights about the relationship between the variable which affects consumer

purchase decision affected through for used bikes. The study reveals the significant

relationship between family income and make of the bikes; gender and color of the

bikes, family income and selling price. Apart from that, the study also provides

valuable insight toward the understanding on how different advertisement and sales

promotion activities provide the base for purchase intention and affects the

consumer buying purchase decision of used bikes.

Source: -

http://www.abhinavjournal.com/images/Commerce_&_Management/Sep12/4.pd

f

The study tries to examine the growth pattern and trend of sales and advertisement

expenses for the selected companies over a period from 1992-93 to 2006-07.

Further it seeks to evaluate the effectiveness of advertisement expenses on sales of

selected companies operating in India at aggregate and disaggregate levels. It also

tries to analyze the behavior of share of advertisement expenses in total sales for the

above mentioned categories. The study is based on panel or pooled secondary data

collected for advertisement expenditure and sales revenue of 134 randomly selected

sample companies operating in India over the period from 1992/93 to 2006/07 which

are further classified on the basis of amount of sales revenue as well as on the basis

of type of product produced. In this study of Panel or Pooled data, Fixed Effect

approach with and without dummy variables are applied to evaluate the

effectiveness of advertisement expenses on sales. Further, annual compound

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growth rates and summary statistics are also estimated. The contribution has found

that the growth rate of sales revenue of manufacturing and companies, whose sales

revenue is more than 1000 crore, is highest in spite of the negative compound

growth rate of advertising expenses of these two types of companies. Further, in

case of non-manufacturing companies, it has been found that these companies are

less popular among the consumers and they are also spending less on

advertisements as compared manufacturing companies. While answering, how much

advertisement expenses need to be incurred, the study concludes that to a large

extent it depends on the nature and size of industries.

According to Dr. V. Hemanthkumar and Dr. P. Premchandbabu

The main aim of advertisement is to make people aware of the product produced by

the company. The company produces the product mainly to meet and satisfy the

needs of the customers. Advertising plays an important role on changing the

consumer behavior and also provides new patterns for purchasing or using any type

of goods and services. It is the most convenient way to reach the female consumers

because they are more deployed by advertisement promises that the product will

give them something special for satisfaction. The advertiser, the agency, the media

and the consumers view advertising according to their desires, expectation and

opportunities. Over the recent years, advertisements remain the favored method of

sales promotion. Consequently, the challenge for an advertiser is to explore every

possible avenue of making an advertisement more noticeable, attractive and

impellent for consumers. This study brings the insights on the impact of ads in the

purchase behavior of the two-wheelers among the women customers, and the output

shall pave the way for rejuvenating the marketing and advertising strategy to tap the

market on the wider range. Youngsters being the decision maker on purchase relies

more on ads. Thus advertisement induces people to decide on purchases of a

branded product.

Ciochetto (2004)the advertisers find it more effective to use television rather than

print media to reach consumers, partly due to low literacy rate.

Chandok (2005)the television medium is the most attractive and important place to

advertise. Most of the young people remain glued to the television and enjoy what

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they see. As a wide range of products and services are consumed or used by

children, many companies tend to target them.

Kavitha (2006)the advantage of television over the other mediums is that it is

perceived as a combination of audio and video features; it provides products with

instant validity and prominence and offers the greatest possibility for creative

advertising.

Definition of sales promotion

An activity designed to boost the sales of a product or service. It may include an

advertising campaign, increased PR activity, a free-sample campaign, offering free

gifts or trading stamps, arranging demonstrations or exhibitions, setting up

competitions with attractive prizes, temporary price reductions, door-to-door calling,

telemarketing, and personal letters on other methods”. More than any other element

of the promotional mix, sales promotion is about “action”. It is about stimulating

customers to buy a product. It is not designed to be informative – a role which

advertising is much better suited to. Sales promotion is commonly referred to as

“Below the Line” promotion.

Sales promotion can be directed at:

The ultimate consumer (a “pull strategy” encouraging purchase)

The distribution channel (a “push strategy” encouraging the channels to stock

the product). This is usually known as “selling into the trade”

Methods of sales promotion

There are many consumer sales promotional techniques available they are

Price promotions

Coupons

Gift with purchase

Competitions and prizes

Money refunds

Frequent user / loyalty incentives

Free travel, such as free flights

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Sales promotions can be directed at the customer, sales staff, or distribution channel

members (such as retailers). Sales promotions targeted at the consumer are called

consumer sales promotions. Sales promotions targeted at retailers and wholesale

are called trade sales promotions.

Adverting is only one element of the promotion mix, but it often considered

prominent in the overall marketing mix design. Its high visibility and pervasiveness

made it as an important social and encomia topic in Indian society.

Promotion may be defined as “the co-ordination of all seller initiated efforts

to set up channels of information and persuasion to facilitate the scale of a good or

service.” Promotion is most often intended to be a supporting component in a

marketing mix. Promotion decision must be integrated and co-ordinate with the

rest of the marketing mix, particularly product/brand decisions, so that it may

effectively support an entire marketing mix strategy. The promotion mix consists

of four basic elements. They are:-

.Advertising

Personal Selling

Sales Promotion

Publicity

Advertising is the dissemination of information by non-personal mean through paid

media where the source is the sponsoring organization.

Personal selling is the dissemination of information by non-personalmethods, like

face-to-face, contacts between audience and employees of thesponsoring

organization. The source of information is the sponsoringorganization.

Sales promotion is the dissemination of information through a wide variety of

activities other than personal selling, advertising and publicity which stimulate

consumer purchasing and dealer effectiveness.

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2.2 Problem statement:-

To measure effectiveness of advertising and Sales Promotion activities of HERO

MOTO CORP Company in the two wheeler market.

Importance of study:-

The study could be used in designing the two wheelers of Hero Moto Corp

Company to the expectations of consumers.

The study could throw a light on the success of present day advertisements

for Hero Moto Corp Company’s two wheelers.

The study could help to know how much money the consumers could spend

for their two wheelers.

The study will also help to know the changes will be required in their bikes

and other services.

The study will also suggest that if they will improve their advertisement

quality or not.

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2.2Objectives of the study:-

Primary:-

“A study of Advertising and Sales promotion activities of HERO MOTO CORP

Company in the two wheeler market”

Secondary:-

To study the role of advertisements, in persuading a consumer to buy two

wheelers.

To analyze the importance of various promotional tools in the purchase of two

wheelers of Hero Moto Corp Company.

To know the most influence media to create awareness regarding two

wheelers of Hero Moto Corp Company.

To measure the effectiveness of various promotional tools in the purchase of

two wheelers of Hero Moto Corp Company.

2.3Limitations of the study:-

The results could not be applied widely without making appropriate changes

for cultural and regional expectations since the study was conducted in limited

area.

The period within which the study was completed is also very small.

The accuracy of the results is limited because of very small sample size.

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Chapter 3

RESEARCH METHODOLOGY

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Research Methodology

3.1 Research design: - Descriptive studies

3.2 Sources of data:-

Primary data sources:- Questionnaire

Secondary data sources:- Internet (web sites), magazines

3.3 Population:-

Data sources: Primary and secondary data

Research approach: Survey methods

Sampling Unit: Visitors of Dhru Agency

Sample size (n): 100 respondent

Extent:Bardoli region.

Time: From 5st June 2014 to 15th July 2014.

Research instrument: Questionnaire

3.4 Data collection method: - Survey method

3.5 Sampling method: - Non probability convenience sampling.

3.6 Sampling frame: - Consumer’s who come in Dhru Agency for service bike

3.7 Data collection instrument: - Questionnaire

60 | P a g e

Chapter 4

DATA ANALYSIS

AND INTERPRETATION

61 | P a g e

Q.1. which hero bikes do you own?

Frequency Percent

HERO 258 86%

HONDA 18 6%

BAJAJ 16 5%

TVS 7 2%

YAMAHA 1 1%

Total 300 100%

Interpretation:-

From the above table and chart we can find that the out of 100%

customerrespondents the86% of customers are using the Hero company’s bike, 6%

customers are using Honda Company’s bike, 5% customers are using Bajaj

company’s bike, 1% customers are using Yamaha company’s bike, 2% customers

are using TVS company’s bike.

So, here we can conclude that the major customers are of the Hero Company.

86%

6%5%2%1%

HERO

HONDA

BAJAJ

TVS

YAMAHA

62 | P a g e

Q.2: Are you aware of any other dealers of hero?

Frequency Percent

YES 84 28%

NO 216 72%

Total 300 100%

Interpretation:-

28% (rate)is the customers are direct purchase in dealers of hero bike, and 72% (rate) purchase are in show room to hero bike.

28%

72%

YES

NO

63 | P a g e

Q.3 From which source of advertisement did you know about the above dealers?

Frequency Percent

TV 40 13%

INTERNET 22 7%

RADIO 71 24%

FRIEND 60 20%

WORD OF MOUTH 75 25%

NEWS PAPER 17 6%

BANNER&HOURDING 15 5%

Total 300 100%

Interpretation:-

From the above table and chart we can find that out of 100% respondents the 25%

of customers are word of mouth hero bike to purchase, 6% customer are through

their newspaper, 13% customers are heard through TV adds, 20% customers are

known from friends and 7% customers are known from the internet source, 24%

customers are purchase from radio sources and only 5% customers banner

&hourding purchase the bike.

So, here the major customers are known about the bike through word of mouth and

radio news of the company.

13%

7%

24%

20%

25%

6% 5%TV

INTERNET

RADIO

FRIEND

WORD OF MOUTH

NEWS PAPER

BANNER&HOURDING

64 | P a g e

Q.4 Do you watch/read advertisement?

Frequency Percent

YES 267 89%

NO 33 11%

Total 300 100%

Interpretation:-

From the above table and chart we can easily say that customerswatch/read advertisement.89% customer’s yes and 11% nowatch/read advertisement.

So, we can easily say that majority of the 89% customer yes to watch advertisement hero bike.

89%

11%

YES

NO

65 | P a g e

Q.5 whichnewspapers do you prefer to read?

Frequency Percent

GUJARAT

SAMACHAR 37 12%

DIVYA BHASKAR 18 6%

GUJARAT MITRA 154 51%

SANDESH 62 21%

GUJARAT GARDIAN 29 10%

Total 300 100%

Interpretation:- From the above table and chart that out of that 100% respondentsnewspaper. 12%

customer are Gujarat samachar, 6% respondents divvybhaskar, 51% respondent of

Gujarat mitra, 21% respondents ofsandesh, 10% respondents of Gujarat guardian.

So, here the newspaper prefers respondents are 51%Gujarat mitra21%

respondents’ofsandesh.

12%

6%

51%

21%

10%

GUJARAT SAMACHAR

DIVYA BHASKAR

GUJARAT MITRA

SANDESH

GUJARAT GARDIAN

66 | P a g e

Q.6Whichadvertisement of hero does you like in TV?

Frequency

Percent

KARIZMA ZMR FI 9 3%

KARZMA R 16 5%

CBZ X-TREME 42 14%

HUNK 21 7%

PASSION PRO 63 21%

IGNITOR 46 15%

SPLENDOR PRO 53 18%

SPLENDOR NXG 17 6%

SUPER SPLENDOR 11 4%

IMPULSE 13 4%

SPLENDOR PLUS 7 2%

HF-DELUXE 2 1%

Total 300 100%

Interpretation:-

From the above table and chart that out of that 100% respondents model of bike 3%

customer are ZMR Fi model, 5% respondentsKarzma R, 14% respondent of CBZ X-

TREME, 21% respondents of passion pro, 7% respondents are Hunk, 15%

respondents are Igniter, 4% respondents are impulse, 18% respondents are

splendor pro, 1% respondents areHF Deluxe, 6% respondents are Splendor NXG,

4% respondents are Super splendor, 2% respondents are splendor plus.

So, here the models major respondents are passion pro (21%), splendor pro (18%)

and igniter (15%)

3%5%

14%

7%

21%15%

18%

6%4%4%2%1%

KARIZMA ZMR FI

KARZMA R

CBZ X-TREME

HUNK

PASSION PRO

IGNITOR

SPLENDOR PRO

SPLENDOR NXG

SUPER SPLENDOR

IMPULSE

SPLENDOR PLUS

HF-DELUXE

67 | P a g e

Q.7 I like advertisement of above, because of Hero Bike?

Frequency Percent

THRILLER 119 39%

ACTION 116 39%

CELEBRITIES 39 13%

THEME OF

ADVERISEMENT 26 9%

Total 300 100%

Interpretation:-

From the like advertisement of above chart out of 100% respondents show that 39%

respondents are thriller, 39% respondents are action, 13% respondents are

celebrities, 9% of respondents are them of advertisements.

So, here we can find that the major customers of Hero Moto auto mobile Company’s

advertisements of hero bike are the 39% thriller and 39% action hero bike.

39%

39%

13%

9%

THRILLER

ACTION

CELEBRITIES

68 | P a g e

Q.8: Advertisement done by Hero Moto Corp is proper for the customers?

Frequency Percent

YES 262 87%

NO 38 13%

Total 300 100%

Interpretation:-

From the above table and chart we can say that advertisement done by the Hero

Moto Corp Company is very good. Here the out of 100% respondent the 87% of

respondents are think that advertisement done by the Hero Moto Corp Company will

proper for the customer and only 13% of respondents will think that it will not proper

for the customer.

So, here we can easily say that majority of the customer will think that advertising and sales promotion activities of Hero Moto Corp Company will proper for the customer.

87%

13%

YES

NO

69 | P a g e

Q.9: Is Hero Moto Corp Company’s advertisement trust worthy?

Frequency Percent

YES 263 88%

NO 37 12%

Total 300 100%

Interpretation:-

From the above table and chart we can say that advertisement done by the Hero

Moto Corp Company is trust worthy. Here out of 100% respondent the 88% of

respondent will trust on the advertisement done by the Hero Moto Corp Company

and only 12% of respondent will think that advertisement will not trust worthy.

So, here majority of the customer will think that advertisement done by the Hero

Moto Corp Company will trust worthy.

88%

12%

YES

NO

70 | P a g e

Q.10: Is Hero Moto Corp Company’s advertisement better than its competitors?

Frequency Percent

YES 269 90%

NO 31 10%

Total 300 100%

Interpretation:- From the above table and chart we can say that advertisement done by the Hero

Moto Corp will better than the competitor. Here out of the 100% respondents 90% of

respondents will think that the advertisement will be better than the competitors and

only 10% of respondents will think it will be not better than the competitors.

So, here the majority of the respondent will think that Hero Moto Corp Company’s

advertisement is better than his competitors.

90%

10%

YES

NO

71 | P a g e

Q.11What was your reactions after watching the Advertisement?

Frequency Percent

CALLED THE DEALER 42 14%

VISIT THE DEALER 26 9%

GATHERED MIRE

INFORMATION FROM FRIENDS

100 33%

GATHERED MORE

INFORMATION FROM INTERNET

121 40%

NO ACTION 11 4%

Total 300 100%

Interpretation:-

From the above table and chart out of 100% respondents 14% respondents called

the dealer, 9% respondents visit of the dealer, 33% respondents gathered more information from friends, 40% respondents gathered more information from internet, 4% respondents no action.

So, here major respondents are the gathered more information from internet(40%)

and gathered more information from friends (33%).

14%

9%

33%

40%

4%

CALLED THE DEALER

VISIT THE DEALER

GATHERED MIREINFORMATION FROMFRIENDS

GATHERED MOREINFORMATION FROMINTERNET

72 | P a g e

Q.12 Have you gone through any marketing campaign of dhru auto mobile?

Frequency Percent

YES 253 84%

NO 47 16%

Total 300 100%

Interpretation:-

From the above table and chart we can say that gone through any marketing

campaign of dhru auto mobile here we can see that out of 100% respondents the

84% respondents yes with the Hero Moto Corp Company, 16% respondents no with

the hero Moto Corp Company.

So, here we can say that majority of the customers are 84% yes marketing campaign

with the Hero Moto Corp Company.

84%

16%

YES

NO

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Q.13Whichadvertisement through have you gone?

Frequency Percent

ROAD SHOW 50 16%

NEWS PAPER 49 16%

SALES CALL 134 45%

HOURDING 53 18%

LEAFLETS 14 5%

Total 300 100%

Interpretation:- From the above table& chart out of 100% respondents show that 17% of

respondents are awareroad show, 16% of the respondents are aware newspaper, 45% of the respondents are aware sales call, 17% of the respondentshoarding, 5% of the respondents’ leaflets.

So, here we can find that the major customers of Hero Moto Corp Company’s

advertisements through of hero bike are the 45% sales call, 17% road show and

17% hoarding heroMotocorp.

17%

16%

45%

17%

5%

ROAD SHOW

NEWS PAPER

SALES CALL

HOURDING

LEAFLETS

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Q.14Which source of advertisement according to you would be more effective for sales of bike?

Frequency Percent

ROAD SHOW 71 24%

NEWS PAPER 56 19%

SALES CALL 133 44%

HOURDING 32 11%

LEAFLETS 8 2%

Total 300 100%

Interpretation:- From thesource of advertisement according to you would be more effective for sales

of bike of above chart out of 100% respondents show that 24% respondents are road

show, 19% respondents are newspaper, 44% respondents are sales call, 11% of

respondents are hoarding, and 2% of respondents are leaflets.

So, here we can find that the major customers of Hero Moto auto crop Company’s

source of advertisement according of hero bike are the 44% sales call and 19%

newspaper sales of hero bike.

24%

19%44%

11%2%

ROAD SHOW

NEWS PAPER

SALES CALL

HOURDING

LEAFLETS

75 | P a g e

Q.15 what is the opinion about the pricing policy of Hero Product?

Frequency Percent

EXPENSIVE 67 23%

MODERATE 190 63%

CHEAP 43 14%

Total 300 100%

Interpretation:- From the above table and chart we can say that the pricing policy of the Hero Moto

Corp Company is not very expensive as compare to other company’s bike. Here out

of 100% respondents 63% of the customers are except that the pricing policy of the

Hero Moto Corp Company is moderate, 23% of the customers are think that pricing

policy of Hero Moto Corp Company is expensive, and 14% of customers are pricing

policy of hero Moto Corp Company is cheap.

So, we can easily say that Hero Moto Corp company’s bikes are moderate as

compare to other company’ bike.

23%

63%

14%

EXPENSIVE

MODERATE

CHEAP

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Q.16 I would like to buy hero bike from dhru auto mobile because of?

Frequency Percent

ADVERTISEMENT 73 25%

BRAND NAME 92 31%

DISCOUNTED PRICE 103 34%

LOCATION

PREFERENCE 31 10%

OTHER 1 0%

Total 300 100%

Interpretation:-

Fromthe above graph it was found that 24% of respondents are aware advertisement, 31% of the respondents are aware about Hero Moto Corp company

brand name, 34% of the respondents are aware discounted price, and 11% of the respondents are aware location preference.

So, here we can say that majority of the customers are 34% discounted price and

31% brand name the Hero Moto Corp Company.

24%

31%

34%

11%0%

ADVERTISEMENT

BRAND NAME

DISCOUNTED PRICE

LOCATION PREFERENCE

OTHER

77 | P a g e

Q.17 how does Hero have customer relation?

Frequency Percent

SATISFACTORY 263 88%

UNSATISFACTORY 37 12%

Total 300 100%

Interpretation:-

From the above table and chart we can say that Hero Moto Corp Company has the

good customer relation. Here we can see that out of 100% respondents the 88%

respondents will satisfactory with the Hero Moto Corp Company, and 12%

respondents will unsatisfactory with the Hero Moto Corp Company.

So, here we can say that majority of the customers are satisfied with the Hero Moto

Corp Company.

88%

12%

SATISFACTORY

UNSATISFACTORY

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Q.18 Are you satisfied with Hero Moto Corp bikes?

Frequency Percent

YES 265 88%

NO 35 12%

Total 300 100%

Interpretation:- From the above table and chart we can easily say that customers are highly satisfied

with Hero Moto Corp Company’s bike. Here we can see that of 88% respondents

customers are YES with Hero Moto Corp Company, 12% respondents customers

NO with hero Moto Corp Company.

So, we can easily say that majority of the customer will 88% satisfied with Hero Moto

Corp Company’s bike.

88%

12%

YES

NO

79 | P a g e

Q.19 Is Hero Moto Corp Company’s advertisement and sales promotion activities required improving in future?

Frequency Percent

YES 269 90%

NO 31 10%

Total 300 100%

Interpretation:-

From the table and chart we can say that advertisement and sales promotion

activities done by the Hero Moto Corp Company it will not require changing. Here the

out of 100% respondent the 90% of respondent will think that advertising and sales

promotion activities will not improve in future and 10% of respondent will think that

sales promotion activities will try to improve in future.

So, here the majority of customer will think that the advertisement and sales

promotion is good and it will not require changing in the future.

90%

10%

YES

NO

80 | P a g e

Q.20 Age

Frequency Percent

BELOW 20

YEARS 25 8%

41-50 YEARS 3 1%

21-30 YEARS 177 59%

51-60 YEARS 8 3%

31-40 YEARS 87 29%

Total 300 100%

Interpretation:- From the above table and chart out of 100% respondents 59% respondents are in

21-30 years age group, 29% respondents are in 31-40 years age group, 8%

respondents are in below than 20 years age group and 1% respondents are in 41-50

years age group, 3% respondents are in 51-60 years.

So, here we can find that the major customers of bike are 21-30 years age group

that shows that major users of the bike of Hero auto mobile are youngsters.

8%1%

59%

3%

29% BELOW 20 YEARS

41-50 YEARS

21-30 YEARS

51-60 YEARS

31-40 YEARS

81 | P a g e

Q.21 Gender

Frequency Percent

MALE 267 89%

FEMALE 33 11%

Total 300 100%

Interpretation:-

From the table and chart we can find that out of 89% of respondent male and 11% of

respondent female.

So, we can find that the all major 89% respondents are the male.

89%

11%

MALE

FEMALE

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Q.22 Income

Frequency Percent

LASS THAN 5000 21 7%

5001-10000 13 4%

10001-20000 133 45%

20001-30000 24 8%

30001-40000 94 31%

MORE THAN 40000

4 1%

CAN NOT

DISCLOSE 11 4%

Total 300 100%

Interpretation:- From the above table and chart we can say that out of 100% respondents 4% respondents are in 5001-10000 income group, 45% respondents are in 10001-20000

income group, 8% respondents are in 20001-30000 income group, 7% respondents are in below than 5000 income group, 4% respondents are not interested to disclose

their income and only 31% of respondents are 30001-40000 income group,1% respondents are more than 40000 income group.

7%4%

45%

8%

31%

1%4%LASS THAN 5000

5001-10000

10001-20000

20001-30000

30001-40000

MORE THAN 40000

CAN NOT DISCLOSE

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Q.23 Occupation

Frequency Percent

STUDENT 69 23%

RETIRED 5 2%

SELF EMPLOYED 142 47%

BUSINESS PERSON 14 5%

GOVERNMENT EMPLOYEE

61 20%

UNEMPLOYED 8 3%

PROFESSIONAL 1 0%

Total 300 100%

Interpretation:-

From the above table & chart out of 100% respondents show that 47% respondents

are self-employed, 23% respondents are students, 20% respondents are

government employee, 5% of respondents are business person, 0% respondents are

professionals, 2% respondents are retired, 3% respondents are unemployed.

So, here we can find that the major customers of Hero Moto auto mobile Company’s

bike are the self-employed 47%, students 23% and government employees 16%

23%

2%

47%

5%

20%

3%0% STUDENT

RETIRED

SELF EMPLOYED

BUSINESS PERSON

GOVERNMENT EMPLOYEE

UNEMPLOYED

PROFESSIONAL

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Chapter 5

FINDINGS

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Finding

Objective To find out of majority hero bike. Q:1 Which hero bike do you own? Finding 86% customers are used Hero bikes, 6% Honda, 5% of Bajaj, 2% of TVS,

1% of Yamaha.

Objective To find out best decision of showroom purchase bike. Q:2 Are you aware of any other dealers of hero? Finding 72% customer purchase is in show room to hero bike, 28% is the

customers dealers are purchase of hero bike.

Objective To find out best advertisement of the purchase bike. Q:3

From which source of advertisement did you know about the above dealers?

Finding 25% customer word of mouth, 24% customer radio, 20% customer friends, 13% customer TV adds, 7% customer internet, 6% customer newspaper and 5% customer banner &hoarding purchase hero bike.

Objective To find out watch/read advertisement. Q:4 Do you watch/read advertisement? Finding Customers watch/read advertisement, 89% customers yes and 11% no

watch/read advertisement.

Objective To find out best prefer to newspaper. Q:5

Which newspaper do you prefer to read?

Finding 100% respondents newspaper 12% customer are Gujarat samachar, 6% divvybhaskar, 51% of Gujarat mitra, 21% of sandesh, 10% of Gujarat guardian.

Objective To find out of best hero advertisement majority. Q:6 Which advertisement of hero does you like in TV? Finding 21% of passion pro, 18% of splendor pro, 15% of Igniter, 14% of CBZ X-

TREME, 7% of Hunk, 6% of Splendor NXG, 5% of Karizma R, 4% of Super splendor, 4% respondents are impulse, 3% of karizma ZMR Fi, 2% of splendor plus, 1% of HF Deluxe.

Objective To find out of best hero advertisement majority. Q:7 I like advertisement of above, because of Hero Bike?

Finding 100% respondents I like advertisement 39% of thriller, 39% of action, 13%

of celebrities, 9% of them of advertisements.

Objective To find out Hero Moto Corp is proper for the customers. Q:8

Advertisement done by Hero Moto Corp is proper for the customers?

Finding 87% respondents are agreeing that advertising of Hero is proper and only

13% not agreeing that it is not proper.

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Objective To find out Hero Moto Corp Company’s advertisement trust. Q:9

Is Hero Moto Corp Company’s advertisement trust worthy?

Finding 88% respondents agree that advertisement of Hero is trust worthy and

12% have not trust on Hero.

Objective To find out best advertisement better than its competitors. Q:10 Is Hero Moto Corp Company’s advertisement better than its competitors?

Finding 90% respondents agree that advertisement done by Hero is better than its

competitors and only 10% not agree it is not better than its competitor.

Objective To find out best watching the Advertisement. Q:11 What were your reactions after watching the Advertisement? Finding 100% respondents customer relation 40% of gathered more information

from internet, 33% of gathered more information from friends, 14% of

called the dealer, 9% visit of the dealer, 4% respondents no action.

Objective To find out best advertisement through. Q:13

Which advertisement through have you gone?

Finding 100% respondent’s advertisement through 45% of sales call, 17% of road show, 17% of hoarding, 16% of newspaper, 5% of leaflets.

Objective To find out the best effective for sales of hero bike. Q:14 Which source of advertisement according to you would be more effective

for sales of bike? Finding Source of advertisement according 100% respondents show that44% of

sales call, 24% of road show, 18% of newspaper, 11% of hoarding, and 2% of leaflets.

Objective To find out the best pricing policy of hero bike. Q:15 What is the opinion about the pricing policy of Hero Product? Finding 63% respondents the pricing policy of moderate and 23% respondents

expensive, 14% respondents cheap.

Objective To find out the Hero bike to customer purchase of brand name. . Q:16 I Would like to buy hero bike from dhru auto mobile because of? Finding 34% of discounted price, 31% of brand name, 24% of advertisement, 11%

of location preference, of like to buy hero bike.

Objective To find out marketing campaign of dhru auto mobile. Q:12 Have you gone through any marketing campaign of dhru auto mobile? Finding Marketing campaign the 84% yes with the Hero Moto Corp Company, 16%

no with the hero Moto Corp Company.

87 | P a g e

Objective To find out the hero bike satisfied the customer relation. Q:17 How does Hero have customer relation? Finding Majority of 88% customer are satisfactory and 12% customer are

unsatisfactory with the customer relation of hero.

Objective To find out the hero bike satisfied the customer. Q:18 Are you satisfied with Hero Moto Corp bikes? Finding 88% customers are YES with satisfied, 12% customers NO with not

satisfied of hero Moto Corp company.

Objective To find out the advertisement and sales promotion activities hero bike Q:19 Is Hero Moto Corp Company’s advertisement and sales promotion

activities required to improve in future? Finding 90 % respondents say that advertisement will require changing in future

and 10% are saying that it is not necessary.

Objective To find out customer behavior at hero Moto crop, bardoli. Q:20

Age.

Finding The study shows that the major customer 59% respondents 21-30 years

age group, 29% respondents 31-40 years age group, 8% respondents

below than 20 years age group, 1% respondents 41-50 years age group,

and only 3% respondents 51-60 years age group.

Objective To find out customer behavior at hero Moto crop,bardoli. Q:21

Gender.

Finding Out of 100% respondents 89% respondents are in male group and only

11% respondents are in female.

Objective To find out customer behavior at hero Moto crop,bardoli. Q:22

Income.

Finding Major respondents are 45% rate in 10001-20000 income group, 31% rate

in 30001-40000 income groups; here the major respondents are the

professionals and business persons.

Objective To find out customer behavior at hero Moto crop, bardoli. Q:23

Occupation.

Finding The study shows that the major respondents of Hero bikes are the self-

employed (47%), students (23%) and government employee (20%).

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Chapter 6

CONCLUSION And

RECOMMENDATIONS

89 | P a g e

Conclusion

Here we can conclude that the Hero Moto Corp Company’s major competitors are

the Suzuki and Yamaha. So here the Hero Moto Corp Company will improve their

product quality and service of their bikes. Here we can find that the major customers

will purchase the bike of Suzuki and Yamaha in future compare to the Hero Moto

Corp. So here Hero Moto Corp Company will improve their product features so that

they can increase their future customers. Here we will find that the major customer of

Hero Moto Corp Company’s bike is 21-30 years age group. So here company should

try to maximize customers. Here maintain the all customer. Here the major

customers are the Hero Moto Corp Company is male.

This survey was done to identify various problem levels of satisfaction of consumers,

advertisement and sales promotion of Hero, So efforts might done to satisfy them

which would result in building long term relationship between customer and

company.

So in short, finally the Hero Moto Corp Company will provide the good quality and

good service with their bikes. So it will increase their customers and it will give the

full satisfaction to their customers. This will provide a chance to maintain good

relation with maximum customer so it will be beneficiary to company in future time

period.

Recommendation

Majority of customer are thinking that advertisement done by hero it required

to change in future, so here Hero have required to change their advertising

and sales promotion activities.

To suggest a few sales promotion techniques to improve the brand

awareness amongst to customers.

Suzuki and Yamaha are major competitors so Hero have required to providing

the good quality in bikes so they can increase their customers.

Company should also improve the TV ads of Hero.

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BIBLIOGRAPHY

91 | P a g e

Bibliography

Web sites:-

http://auto.indiamart.com/two-wheelers

http://auto.indiamart.com/two-wheelers/hero-motocorp.html

http://compare.pricesofindia.com/showroom/hero-motocorp

http://en.wikipedia.org/wiki/Hero_MotoCorp#History

http://www.heromotocorp.com/en-in/investors/eventsnews

http://www.herohonda.advertisment.pro.coreproduct.org

http://www.studymode.com/essays/Advertising-And-Sales-Promotion

198231.html

http://www.zigwheels.com/newbikes

Kavitha G. (2006) “A Study On The Effectiveness Of The Advertising

Techniques Used In The Personal Care Segment Of Women

Consumers”, Indian Journal of Marketing, Vol. 36, No. 8, pp. 12-16.

Books:-

Kotler, Philip, Marketing Management, (Prentice-Hall of India, New

Delhi, 2000). pp. – 40-54

Beri G. C. (2006). Marketing Research. 3rd Edition. New Delhi: Tata

McGraw-Hill publishing company Ltd pp. 135-151

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ANNEXURE

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Questionnaire I Patel Dipak, Student of THE MANDVI EDUCATION SOCITY INSTITUTE OF BUSSINESS MANAGEMENT, Mandvi doing a survey on “ A STUDY OF ADVERTISING AND SALES PROMOTION ACTIVITIES OF DHRU AUTO MOBILE ” I assure that the information which is been provided you are that kept confidential and it will be used for survey [academic] purpose only.

Instructions:

1. Please tick mark (✔) in as when asked to do.

2. Provide the information in detail whenever in is asked to do.

3. Provide your true feedback/answer.

Q.1which hero bike do you own? 1. HERO5. YAMAHA

2. HONDA 6. SUZUKI 3. BAJAJ 7. ROYAL ENFIELD 4. TVS 8. ANY OTHER____________

Q.2 Are you aware of any other dealers of hero? 1. YES 2. NO IF YES, WHICH _____________

Q.3 From which source of advertisement did you know about the above dealers? 1. TV 2. INTERNET 3. RADIO 4.FRIEND 5. WORD OF MOUTH 6.NEWS PAPER

7. BANNER & HOURDING 8.OTHER________________

Q.4 Do you watch/read advertisement? 1. YES 2.NO

Q.5 which newspapers do you prefer to read?

1. GUJARAT SAMACHAR 2. DIVYA BHASKAR

3. GUJARAT MITRA 4. SANDESH 5. GUJARAT GARDIAN 6. OTHER ______________

Q.6Which advertisement of hero does you like in TV? 1. KARIZMA ZMR FI 2.KARZMA R 3. CBZ X-TREME 4. HUNK 5. PASSION PRO 6. IGNITOR

94 | P a g e

7. SPLENDOR PRO 8.SPLENDOR NXG 9. SUPER SPLENDOR 10. IMPULSE

11. SPLENDOR PLUS 12. HF-DELUXE

Q.7 I like advertisement of above, because of Hero Bike? 1. THRILLER 2.ACTION

3. CELEBRITIES 4.THEME OF ADVERISEMENT

Q.8: Advertisement done by Hero Moto Corp is proper for the customers? 1. YES 2. NO

Q.9: Is Hero Moto Corp Company’s advertisement trust worthy? 1. YES 2. NO

Q.10: Is Hero Moto Corp Company’s advertisement better than its competitors?

1. YES 2. NO

Q.11What was your reactions after watching the Advertisement? 1. CALLED THE DEALER

2. VISIT THE DEALER 3. GATHERED MORE INFORMATION FROM FRIENDS

4. GATHERED MORE INFORMATION FROM INTERNET 5. NO ACTION

Q.12 Have you gone through any marketing campaign of dhru auto mobile? 1. YES 2. NO

Q.13 which advertisement through have you gone? 1. ROAD SHOW 2. NEWS PAPER

3. SALES CALL 4. HOURDING 5. LEAFLETS

Q.14which source of advertisement according to you

would be more effective for sales of bike? 1. ROAD SHOW 2. NEWS PAPER 3. SALES CALL 4. HOURDING 5. LEAFLETS

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Q.15 what is the opinion about the pricing policy of Hero Product? 1. EXPENSIVE 2. MODERATE 3.CHEAP

Q.16 I would like to buy hero bike from dhru auto mobile because of? 1. ADVERTISEMENT 2. BRAND NAME

3. DISCOUNTED PRICE 4. LOCATION PREFERENCE 5. OTHER ___________

Q.17 how does Hero have customer relation? 1. SATISFACTORY 2. UNSATISFACTORY

Q.18 Are you satisfied with Hero Moto Corp bikes? 1. YES 2. NO

Q.19 Is Hero Moto Corp Company’s advertisement and sales promotion activities required improving in future? 1. YES 2. NO

DEMOGRAPHIC QUESTIONS Q.20 Age 1. BELOW 20 YEARS 2. 41-50 YEARS

3. 21-30 YEARS 4. 51-60 YEARS 5. 31-40 YEARS 6. MORE THAN 60 YEARS

Q.21 Gender 1. MALE 2. FEMALE

Q.22 Income 1. LESS THAN 5000 2. 20001-30000 3. 5001-10000 4. 30001-40000

5. 10001-20000 6. MORE THAN 40000 7. CAN NOT DISCLOSE

Q.23 Occupation 1. STUDENT 2. RETIRED 3. SELF EMPLOYED 4. BUSINESS PERSON

5. GOVERNMENT EMPLOYEE 6. UNEMPLOYED 7. PROFESSIONAL 8. OTHER _______________

NAME:- _______________________________________ MO.NO:- ______________________________________