Professional Documents
Culture Documents
Submitted By
UNDER THE GUIDANCE OF Faculty Guide Mrs. Shilpa Faculty INC Davangere.
CERTIFICATE This is to certify that the Summer Internship Project 2007 titled A
CUSTOMER EXPECTATION AND PERCEPTION ON PRODUCT AND SERVICE OF HERO HONDA MOTORS LTD. IN DAVANGERE a bona
fide work of Mr. Venkatesha G [Enrollment No: 6ND10031 & INC Center: DAVANGERE] is original and has been done under my supervision in partial fulfillment of the requirement for the award of MBA for the period of four months from December 2007 to February 2008. I am pleased to record here that his performance during the period was extremely satisfactory.
DECLARATION
MBA batch of 2006-08 under the valuable guidance and supervision of Mrs. Shilpa (Faculty guide), ICFAI National College, and Davangere. In partial fulfillment of the requirement of ICFAI University for the award of Masters in Business Administration.
VENKATESHA G
E NO: 6ND10031
ACKNOWLEDGMENT This project has been successful with the help of many people without the support of which it would it has been as of row. Here I taken the opportunity to thank and express my gratitude to everyone that have helped me. I am highly indebted to my respondents for carrying out my project without whom it would have been not possible. It has been fortune to associate with Faculty Guide Mrs. Shilpa, I thank their guidance, support, and Preparation of this Project Study. I express my sincere thanks to our Faculty Members of INC Center Davangere for their guidance, co-operation and moral support till the successful completion of project.
TABLE OF CONTENT
SL. NO. 1 2 PARTICULARS ACKNOWLEDGMENTS LIST OF TABLES INTRODUCTION 4.1 OBJECTIVES AND LIMITATIONS 3 4 5 6 7 8 FINDINGS AND CONCLUSIONS 9 REFERENCE 4.2 METHODOLOGY LITERATURE SURVEY INDUSTRY PROFILE COMPANY PROFILE EMPIRICAL ANALYSIS PAGE NUMBERS 02-04 05 6 07-08 09-10 06-08 09-26 27-33 34-
INTRODUCTION
CUSTOMER EXPECTATION
The needs, wants, and preconceived ideas of a customer about a product or service. Customer expectation will be influenced by a customer's perception of the product or service and can be created by previous experience, advertising, hearsay, awareness of competitors, and brand image. The level of customer service is also a factor, and a customer might expect to encounter efficiency, helpfulness, reliability, confidence in the staff, and a personal interest in his or her patronage. Customer expectations are influenced by cultural values, advertising, marketing, and other communications, both with the supplier and with other sources. Perception is the process of acquiring, interpreting, selecting, and organizing sensory information.
existing customers.
OBJECTIVES OF THE STUDY The important objectives of the study are as follows To know the customers expectations from Hero Honda. To know Customer satisfaction level towards Hero Honda. To know the Satisfaction and Bike design are Independent or dependent T o know the Bike price and Satisfaction level are Independent or dependent
LIMITATIONS OF THE STUDY Due to time constraint the information collected from the customer is limited. The sample size is limited. Getting accurate responses from the respondents is difficult due to their problems.
inherent
METHODOLOGY OF RESEARCH
To start with a study or market survey we require a methodology to be followed. So as to know the customer expectations and perceptions on Hero Honda, I have selected a sample survey method. Customer expectations may be determined through interviews, surveys,
Sampling method deals with a small proportion of population i.e., representative of the entire population.
PRIMARY DATA:
Primary sources enable the researcher to get as close as possible to what actually happened during an historical event or time period. A primary source reflects the individual viewpoint of a participant or observer at the time of the event. Primary sources can be published or unpublished, in public archives or private collections, and can take a variety of forms. Collection of information about Hero Honda products and company. Conducting survey of opinion and views on Hero Honda Services. Suggestion and recommendation provided on the basis of customer survey conducted.
SECONDARY DATA:
A secondary source interprets or analyzes an historical event or phenomenon. It is a source that was not produced at the time of the event but is at least one step removed. Books and articles that are based on primary sources but include analysis and evaluation are secondary sources. Sometimes, memoirs are considered to fall into the category of secondary sources.
LITERATURE REVIEW
In assessing consumer opinion to assist in the automobile industry, it will involve research in the information of the service quality, customer satisfaction, consumer opinion survey, data collection, and effective methods of assessing and presenting data, and as well to draw on a number of publications and journals from different sources. Then, with the aid of these publications, a review will provide a conceptual framework for the study. CUSTOMER SATISFACTION Most of the studies into customer satisfaction in the automobile literature have focused on identifying product attributes, which are treated as customers needs and wants. From a marketing perspective, customer satisfaction is achieved, when their needs and wants are fulfilled. There is a general widespread agreement in the literature that the provision of product quality is concerned with generating customer satisfaction. KEY VARIABLES IN THE LITERATURE
In sum, a number of researchers have investigated the customers expectations and perceptions of the product quality, and the customer satisfaction. As the key variables, product quality and customer satisfaction have been examine within the large amount of literature.
CHAPTER II
INDUSTRY PROFILE
Origin of Scooters
Necessity they say is the mother of all inventions, as the scooter emerged out of a necessity of transport rather than anything else after the Second World War. Though the traces of scooters can be found in the United States of America, it was in Italy that these wonderful set of two-wheelers got a new lease of life. Italy was ravaged after the Second World War, their roads were destroyed and transportation system was in a mess. The need of the hour was an affordable transportation system which the Italians could use to maneuver the war ravaged roads without digging a hole in their pockets. An Italian company Piaggio who were into the manufacturing business, and had aircrafts in their portfolio. So a company which was into manufacturing huge machines actually thought small and it really clicked. Enrico Piaggio, the founder's son, realized the need for an affordable form of transport and entrusted the responsibility of developing such a vehicle to Corradino D'Ascanio who is credited with inventing the helicopter. D' Ascanio utilized all his experience in flying to prepare a set of two-wheels which though could not fly by itself, surely had all the thrills attached with flying. D' Ascanio created a single chassis two-wheeler and showed it to Enrico Piaggio who felt that it looked like a wasp (Vespa in Italian and hence the name). Thus it preformed dual purpose it looked good and also provided a reliable form of transportation, it provided the riders a feel of the air, a sense of speed and thrill. The first
Vespa was manufactured in 1946 and with in a decade or so it was being exported to other European countries. However Vespa was not unscathed for competition, it was the vision of another legendary entrepreneur Ferdinando Inocennti that led to the creation of the Lambretta. He was also appalled at the situation in which his country was after the World War II and like Enrico Piaggio; he also felt the urgent need of a two-wheeler which could provide the necessary protection from the weather unlike a motorcycle and maneuver the war torn streets of Italy. They came out with a product called Lambretta A which among other things was a very fuel efficient scooter. Lambretta was very similar in design to the Vespa and both the scooters continued to rule the roost, till the Japanese arrived in the mid 1980's. The Japanese models were sleek in design and their engines were environment friendly enough to meet the stricter emission norms.
India also has a rich tradition of scooters in the country and was not to be left out in the scooter race, the Lambretta brand was acquired by the Indian Government and it was rechristened as scooters India Limited. The company started producing scooters with in two years by using the Inocennti Machinery. The company manufactured the first scooter in the country called Vijai Super and thus India's love story for the scooters began.
Some of the features that deserve attention in respect of the Indian two wheeler segment are as mentioned: The total sale of two wheelers in India has touched a figure of 7.86 million units by March, 2007, up 11.42% from the previous fiscal figures of 7.05 million. Production during the period reached 8.63 million units. The production of two wheelers in India is expected to reach a staggering 17.85 million units by 2011-12, more than double of the current production level. The two-wheeler production capacity is to reach 22.31 million units in 2011-12 compared with 10.78 million in 2006-07. India is likely to export 1.39 million two-wheelers in 201112 compared with 590,000 in 2006-07. Total investment for new capacity generation in twowheeler segment is likely to be more than $2.2 billion (INR10, 000 crore). Hero Honda, Bajaj Auto and TVS Motor remain the leading players in terms of sales and popularity of their two wheelers.
The composition of the two-wheeler industry moreover has undergone dramatic transformation in the post-liberalization period after the 1990s. As against the market demand of about 50 per cent of the total 2-wheeler segment in the Indian market in 1991, Motorcycle and moped have experienced almost equal level of share in the total number of two-wheelers. Recent years, the share of motorcycles increased to 78 per cent of the total two-wheelers while that of scooters and mopeds declined to the level of 16 and 6 per cent respectively.
The composition of the two-wheeler industry moreover has undergone dramatic transformation in the post-liberalization period after the 1990s. As against the market demand of about 50 per cent of the total 2-wheeler segment in the Indian market in 1991, Motorcycle and moped have experienced almost equal level of share in the total number of two-wheelers. Recent years, the share of motorcycles increased to 78 per cent of the total two-wheelers while that of scooters and mopeds declined to the level of 16 and 6 per cent respectively.
The growth of Indian two wheelers major like Bajaj Auto, Hero Honda Motors, TVS Motor, Yamaha Motor and others have facilitated the growth of two wheeler segment. Today two wheelers are used more than a mere conveyance mode and as a style statement with the vehicle having a whole lot of accessories enabling better, stylish, fuel efficient and safe driving on Indian roads.
Hero Honda is the leading brand of two wheelers that is dominating the Indian two wheeler market for some time. With a market share close to 41 percent of the total two wheelers in India, this joint venture between the Hero Group of India and Honda of Japan, Hero Honda has quite a number of awards to its credit that include "Bike of the Year" award for its CBZ X-treme, Most Trusted Company of the Year, Number 1 Standard Motorcycle for its CD Deluxe and Auto Tech of the Year award in 2007 alone. The company has a network of dealers and service centers spanning the country that takes care of the customers' choice, their service needs and provide them with the best of Hero Honda's services. A range of mopeds, scooters and motorcycles from the TVS Motor such as TVS Fiero F2, TVS Fiero FX, Scooty Pep Plus, TVS Victor Edge, TVS Star, TVS Star City, TVS XL Super, TVS Apache RTR are some of the two wheelers that have made TVS one of the lading names to reckon with on the Indian two wheeler scene. The company has a network of dealers and service centers all across the country that ensure the customers have a variety of options, service solutions and advice, if and when needed for any of their TVS Motor two wheelers. Yamaha Motor India is the Indian subsidiary of the Japanese automobile giant, Yamaha. The company has a limited presence on the Indian two wheeler scene with models like Gladiator, Yamaha G5, Crux and Alba. However, its models are backed by the world renowned Japanese technology and are more fuel efficient though more expensive as compared to other Indian two wheelers. The company has developed a strong network of dealers and service centers that covers the important towns and cities in the country.
The Indian two wheeler market has undergone significant transformation in recent times and stylish, fuel-efficient and eco-friendly two wheelers are gaining popularity. In addition to, the markets in Asia, Africa, Middle East, South America and even parts of Europe are gradually emerging as new markets for the Indian two wheelers that indicate their enhanced stature and technological ability.
But now the trend indicates that people are preferring motorcycles more than that of the scooters. At present there is a huge demand for the motorcycles in India .There are a number of two wheeler companies in India that produce vehicles of extremely high standard. Some of the leading two wheeler manufacturers in India are Bajaj Auto., TVS Motor, Kinetic Motor, Suzuki Motor Corporation, Royal Enfield Motors India, Hero Honda Motors, Yamaha Motor India, LML India and Monto Motors . Many of two wheelers manufactured by these companies are exported to countries in South East Asia, Africa and South America.
Motorcycles are usually priced higher than that of the scooters and mopeds. They are even equipped with more features for faster travel. Based upon the engine displacements and power capacity motorcycles are further classified as: road bikes, trail bikes, racing bikes and touring bikes. Most of the motorcycles in India come with engine capacity of about 100 cc to 250 cc. The engine capacity of scooters usually vary between 100 cc to 150 cc. Mopeds have small engine capacity ranging between 50cc to 100 cc. Most of the automobile companies in this segment are always coming up with newer variants of different models of two wheelers. To be in the long run these companies are even adding more number of features to these vehicles.
The production of two-wheeler has merely reflected the way the market has developed over the recent years. Here is a brief look about the production trend of two wheelers in the country based on the data provided by Society of Indian automobile Manufacturers (SIAM)
Motorcycles production:
2001-02
2906323
2002-03
3876175
2003-04
4355168
2004-05
5193894
2005-06
6201214
The production figures of motorcycles simply reflect the trend that is prevalent in the industry, as the demand of motorcycles has increased so have their production. Demand for two-wheelers has grown at a rate of 17% in the year 2004/2005. Bajaj Auto which is the one of the largest producer of two-wheelers in the country has been able to achieve a production of 1.8 million vehicles with manpower of 10,914 in 2004/2005 as compared to 1.5 million vehicles in 2003/2004 with manpower of 11,531. Many companies like the Honda motorcycles and scooters India Limited are beefing up their production capacities to reach a target of around 300,000 per annum
Scooters production:
2001-02
937506
2002-03
848434
2003-04
935279
2004-05
987498
2005-06
1020013
Though the metal geared scooters have fallen out of favor of the Indian riders, the ungeared segment of scooters have been able to drive the volumes in this segment. This fact is reflected in the dip in production during the early 2000. On a more positive note the ungeared segment of scooters have grown by over 13% in 2004/2005 thus driving the production in this segment. Bajaj Auto which has an overwhelming presence in this segment has produced 742,000 units during 2004/2005.
Mopeds production:
2001-02
427498
2002-03
351612
2003-04
332294
2004-05
348437
2005-06
379574
These entry level two-wheelers have seen a steady decline in the production in the recent years, though in the year 2005-2006 their production has picked up but its too early to predict a revival of this segment of two- wheelers. As entry level motorcycles become cheaper with every passing day mopeds might see a further dip in production and sales in the years to come.
The introductions of motorcycles like the TVS Star range of motorcycles have helped the company in gaining a healthy market share in this segment. Where the company has emerged as a clear winner by holding onto its leadership position is in the moped segment. The company has posted a 10% growth in sales accounting for a market share of about 77%. The company also expects to arrest the decline of its one time best seller TVS Victor through its new variant Victor GLS. If this figures have daunted you the best is yet to come, the country leader in twowheelers hero Honda have crossed the three million mark during the year 2005/2006 which is a good few lakhs more than its nearest competitor Bajaj Auto. The company accounted for nearly 40% of then two-wheeler market. In the motorcycle segment the company has been able to attain a market share of about 50%. The segment in which hero Honda has emerged as a clear winner is the Deluxe segment, which is the largest segment in the motorcycles category, with its flagship family of motorcycles splendor selling over 1.2 million units which is just a shade less than all the two wheelers sold by TVS during the same year. The motorcycle category is expected to see a further growth and according to industry experts it will drive all other category of two-wheelers to the periphery. The table below shows the over all trend of Industry Sales over a 5 year period. The figures are provided by the Society of automobile Manufactures Association (SIAM).
Motorcycles sales:
2001-02
2887194
2002-03
3647493
2003-04
4170445
2004-05
4964753
2005-06
5815417
Scooters sales:
2001-02
908268
2002-03
825648
2003-04
886295
2004-05
922428
2005-06
908159
2001-02
408263
2002-03
338985
2003-04
307509
2004-05
322584
2005-06
332741
Mopeds sales:
COMPANY PROFILE
The Company was Incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles upto 100 cc capacity. The Company was promoted by Hero Cycles (P) Ltd. (HCPL). - The Company entered into a technical-cum-financial collaboration agreement with Honda Motor Co. Ltd., Japan (HML). As per this collaboration agreement, HML was to furnish complete technical information and know-how and trade secrets and other relevant data. - Hero Honda CD-100 is the first four stroke motorcycle to be introduced in India in 100cc range. Its most attractive features are fuel efficiency and its light weight. CD-100 will be equipped with electronic ignition system, illuminated speedometer, 4 speed gear box, neutral and flasher indicators, etc. - 15 No. of equity shares subscribed for by the promoters, etc. In November, 119,99,985 No. of equity shares issued at par of which 71,99,985 shares reserved for allotment as under: - (i) 31,19,998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd., and Bahadur Chand Investments (P) Ltd. - (ii) 31,20,000 shares to Honda Motor Co. Ltd., Japan and - (iii) 9,59,987 shares to friends and association of promoters. Out of the balance 48,00,000 shares, 2,40,000 shares were reserved for subscription by the employees of the Company and 96,000 shares by business associates. The remaining 44,64,000 shares were offered at par for public subscription during November. 1985 - The Company embarked on its 2nd phase of expansion of increasing its installed capacity from 1,20,000 to 1,50,000 vehicles per annum by the addition of several critical aliminium and steel components. 1986 - 36,00,000 rights equity shares issued at par in prop. 3:10. 1987 - The Company offered 6,00,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par on rights basis in the proportion 1 debenture: 18 equity shares. - Another 3,00,000 - 15% debentures were allotted to retain oversubscription. The debentures were to be redeemed at a premium of Rs 5 per debenture on the expiry of the 7th year from the date of allotment of the debentures. - 3,75,000 rights equity shares issued at par in prop. 3:10.
1989 - The Company introduced a new model "Sleek" during July. - 850 No. of equity shares forfeited. 1990 - The Company was planning to launch a new model motor cycle-CD 100 SS sutiable to semi-rural conditions. In the domestic market the Company was reported to have a market share of 46%. - 850 forfeited shares reissued. 1994 - The Company proposed to expand the capacity of existing plant at Dharuhera to 2,40,000 nos. per annum. Another plant with an installed capacity of 1,50,000 nos. per annum at Gurgaon Industrial Estate was being set up. - The Company issued 39,79,500 bonus shares to the existing shareholders in the ratio of 1:4. The Company also issued 28,557 number of fractional coupons representing 14,250 shares against which shares shall be allotted to presenting the same for consolidation and allotment. - The Company's production and turnover increased to 1,83,490 motorcycles and Rs.483.85 crores respectively due to growth in demand for two wheelers and declining inflation. 1995 - 14,420 bonus shares issued by way of consolidation of fractional coupons. - A new Technical Collaboration Agreement has been signed with Honda Motor Co. Ltd., Japan for the period upto the year 2004 which includes technology related to models of higher Engine displacement. - The Company alloted 39,79,500 No. of Equity Shares of Rs. 10/- each as Bonus shares on 7th February, by way of capitalisation of General Reserves. - The Company had issued 28557 No. of Fractional Coupons representing 14.250 shares against which the Shares shall be alloted on presenting the same for consolidation and allotment. 1997 - Hero Honda Motors has launched its newest motorcycle, the Street, a 100 cc bike designed for use in congested urban traffic conditions.
- Hero Honda Motors Ltd (HHML) has set up a new motorcycle plant in Gurgaon, near Delhi for the manufacture of the Honda Super Cub 100 cc stepthro bike. - Hero Honda has set up a new state-of-the-art plant, heralding a new phase of development of motorcycle industry in India, to provide the most modern and technologically advanced production facilities. - Hero Motors of the Rs.1,600 crore Hero group, as part of its globalisation plan, has set up a plant in Brazil for manufacturing hero winner scooters. - A new step thru model `Street-100' with unique feature was launched on 24th January. 1998 - The company proposes to increase the share capital to 5 crore equity shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares of Rs. 100 each and 4 lakh cumulative convertible preference shares of Rs. 100 each with power to increase or reduce it from time to time. - The company further proposes to capitalise Rs. 19,96,87,500 from general reserve to share capital through issue and allotment of bonus shares. Altogether, 1,99,68,750 fully paid bonus shares will be allotted and distributed to members of the company holding equity shares of the company in the proportion of one bonus share for every fully paid equity shares of Rs.10 each. - Motorcycles major Hero Honda is considering entry into scooters in collaboration with partners, Honda Motors, after the Japanese company decided to walk out of Kinetic Honda, their scooter venture with the Firodias of Pune. - Honda Motors recently pulled out of its joint venture with the Firodias in which it held a 51 per cent equity stake. - Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor Ltd (KHML) have signed a five-year licence and technical assistance agreement under which KHML will continue to receive the technical knowhow, critical vehicle parts and access to Honda's markets even after the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL). - The Company changed the paradigm in two-wheelers by launching the most powerful and fast bike- CBZ(ee) with a unique feature of Transient Power Fuel Control (TPEC) system. - 23,962,500 bonus shares issued in prop. 1:1. 1999 - Hero Honda Motors Ltd (HHML) and 20th Century Finance Corporation Ltd have signed a Memorandum of Understanding (MoU) for financing of Hero Honda motorcycles.
- The company, a joint venture between Honda Motor Company of Japan and Hero group of India to produce four-stroke motorcycles, also aims to increase its share by 1 per cent to 38.6 per cent during the current fiscal. - Leading two-wheelers manufacturer Hero Motors has formed a joint venture with Briggs Stratton of US to develop and manufacture four-stroke engines for mopeds and scooters in India, a top company. - Honda Motor Company of Japan has decided to re-enter the scooter market in India as also foray into three-wheelers in a joint initiative with its existing joint venture company Hero Honda Motors Ltd. 2000 - Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national tie-up agreement. The Company is the largest manufacturer of motorcycles in the country. - The Company will relaunch its stepthru Stree Smart on Baisakhi 13th April. - Hero Honda Motors Ltd (HHML), has launched an upgraded version of the existing stepthrough motorcycle - the Hero Honda Street. - The Company was ranked as the 9th Highest Value Creator among 12 industry groups within the Bombay Stock Exchange top 100 companies over a five year period (1994-99). 2001 - Hero Honda Motors Ltd. has launched a new 100cc motorcycle named `Passion'. - The Company has secured shareholders' approval for splitting one equity share of Rs 10 each into five equity shares of Rs 2 each in the ratio of 1:5. - Hero Honda Motors Ltd. has become the largest seller of motorcycles amongst all Honda companies and ventures in the world by selling one million motorcycles during the current financial year. - Credit rating Agency Crisil has reaffirmed outstanding `AAA' rating assigned to the proposed Rs 15 crore non-convertible debenture issue, Rs 16 crore commercial paper programme and fixed deposit programme of Hero Honda Motors. - Promoter-Chairman of the country's largest motorcycle manufacturing company, Hero Honda Ltd, Brijmohan Lall Munjal has bagged the prestigious Ernst & Young Entrepreneur of the Year (EOY) award here on September 27. 2002
-Company included in the 30 companies Bombay Stock Exchange index (Sensex) -Becomes the world's largest two wheeler company by selling 1.3 million vehicles in 2001 -Japanese automaker Honda Motor for the first time decides to source motorcycles from its Indian joint venture Hero Honda to sell as 'Honda' brandname in Vietnam -Royalty to the Japanese parent, Honda Motor Co, hiked to Rs 630 per vehicle as compared to the flat royalty of Rs 200 on existing models like Splendor and Passion -Approves Foreign Institutional Investors (FIIs) to increase their stake from the present 24 per cent to 40 per cent -Comes out as the most profitable two-wheeler company in the country during the trailing four quarters by overtaking second-largest player, Bajaj Auto -Launches Ambition, a 133 cc 11 BHP vehicle -Unveils Smart, a 75 cc step-thru -Comes out with a free insurance scheme worth Rs 1,000 for all its bikes -Bajaj Auto goes ahead of Hero Honda in market capitalisation (m-cap) growth in the last fifteen months 2003 -Achieves a landmark sales turnover of over Rs 5,000 crore during 2002-03 -Launches its cheapest 100cc motorbike 'CD Dawn' -Hikes production capacity at two of its manufacturing facilities to three lakh units -Hero Honda and SBI Cards launch co-branded credit card for Hero Honda's customers -Achieves milestone by producing five million bikes from its Dharuhera plant in Haryana -Launches its new 223-cc, 16.8 BHP Karizma at Rs 79,000 -Joins hands with Small Industries Service Institute (SISI) to train the unemployed youth who have finished diplomas -Initiates a new dealer credit system which will bring down its receivable levels to around seven days and save the company Rs 100 crore -Introduces Passion Plus, new version of Passion motorcycle
-Forges marketing pact with Aprilia, the Italian bike maker, to introduce its range of motoscooters and top-end motorcycles in India -The company has bagged two Total Customer Satisfaction (TCS) Awards. -Hero Honda Karizma bags BBC Bike of the Yr Award 2004 -Hero Honda retreats Ambition -Hero Honda unveils new version of Ambition -Hero Honda's Dawn emerges as largest entry-level bike -Hero Motors introduces 'Sting' new 4-stroke bike -Hero Motors has announced a licensing agreement with Austria-based Bombardier-Rotax that will provide 125cc-175cc engines for the upcoming `Hero Aprilia' range of scooters. -Hero Honda renews alliance with Honda Motor -Two-wheeler major Hero Honda and SBI Card, the credit card arm of State Bank of India, have joined hands to launch India's first co-branded credit card in the two-wheeler industry 2005 -New product launches widen HHML's product portfolio -Two-wheeler major Hero Honda on October 5 announced launch of its first scooter 'Pleasure' -Hero Honda rolls out 150-cc motorcycle Achiever 2006 -Hero Honda launches CBZ variant X-treme -Hero Honda announced the launch of two new variants the new 'Glamour' and 'Passion Plus' limited edition. 2007 -Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Director and Whole-time Director of the Company in the category of Executive Director w.e.f. April 1, 2007. 2008
- Hero Honda Motors Ltd has informed that Mr. Arun Nath Maira. has been appointed as an Additional Director in the category of Non Executive and Independent Director w.e.f. December 20, 2008 by the Board of Directors by way of passing a resolution by circulation .
HERO HONDA'S MISSION Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders. KEY MILESTONES OF HERO HONDA 1983 Joint Collaboration Agreement with Honda Motor Co., Ltd., Japan signed
1984 Hero Honda Motors Ltd. Incorporated 1985 First motorcycle "CD 100" rolled out 1994 New motorcycle model - "Splendor" introduced 1,000,000th motorcycle produced 2003 Hero Honda becomes the first Indian Company to cross the cumulative 7 million sales mark
2003 Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) 2006 Hero Honda is the World No. 1 for the 5th year in a row
MOTORCYCLES Hero Honda Achiever Hero Honda CD 100 Hero Honda Glamour Glamour
Hero Honda CD Dawn Hero Honda CD 100 SS Hero Honda Splendor Splendor + Super Splendor
Hero Honda CD Deluxe Hero Honda Glamour Hero Honda Passion Plus
Glamour - FI
Splendor NXG
BOARD OF DIRECTORS
No Name of the Directors . 1 2 3 4 5 6 7 8 Mr. Brijmohan Lall Munjal Mr. Pawan Munjal Mr. Toshiaki Nakagawa Mr. Sumihisa Fukuda Mr. Om Prakash Munjal Mr. Sunil Kant Munjal Mr. Masahiro Takedagawa Mr. Satoshi Matsuzawa (Alternate Director to Mr. Takashi Nagai) 9 10 11 12 13 14 Mr. Pradeep Dinodia Gen.(Retd.) Ved Prakash Malik Mr. Analjit Singh Dr. Pritam Singh Ms. Shobhana Bhartia Mr. Sunil Bharti Mittal Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director Non-executive & Independent Director 15. Mr. Meleveetil Damodaran 16. Mr. Arun Nath Maira Non-executive & Independent Director Non-executive & Independent Director Chairman & Whole-time Director Managing Director & CEO Joint Managing Director Technical Director Non-executive Director Non-executive Director Non-executive Director Non-executive Director Designation
MR. BRIJMOHAN LALL MUNJAL Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $ 2.8 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the Country's Central Bank (Reserve Bank of India ). In recognition of his contribution to industry, Mr. Lall was conferred the Padma Bhushan Award by the Union Government. Mr. Brijmohan Lall Munjal is currently on the board of the following companies: No Name of Company . 1 2 3 4 5 6 7 8 9 10 Hero Honda Motors Limited Hero Cycles Limited Hero Honda Finlease Limited Munjal Showa Limited Sunbeam Auto Limited Easy Bill Limited Hero Financial Services Limited Munjal Auto Industries Limited Shivam Autotech Limited Daimler Hero Commercial Vehicles Limited Chairman and Whole-time Director Chairman and Director Chairman and Director Chairman and Director Chairman and Director Director Director Director Director Director Nature of Office
MR. PAWAN MUNJAL Mr. Pawan Munjal is the Managing Director and CEO of the Company. He is responsible for growth and strategic planning for the entire Group. A graduate in mechanical engineering, Mr. Munjal has been instrumental in bringing about
technological and managerial excellence in the Company's operations. He has been the Chairman of several Committees of CII. He is also on the board of Indian Institute of Management, Lucknow . An avid golfer, Mr. Munjal is Past Chairman of the Asian PGA Tour Board of Directors and the Past President of Professional Golfers Association of India (PGAI). Under his guidance, Hero Honda launched the Hero Indian Sports Academy (HISA) in collaboration with Laureus Foundation to provide equal opportunities in sports to various communities and to reward talent in the country. Mr. Pawan Munjal is currently on the Board of the following companies: No Name of Company . 1 2 3 Hero Honda Motors Limited Hero Honda Finlease Limited Daimler Hero Commercial Vehicles Limited Managing Director Director Director Nature of Office
MR. TOSHIAKI NAKAGAWA Mr. Toshiaki Nakagawa joined the Company as Joint Managing Director on February 1, 2006. He joined Honda Motor Co., Ltd, Japan in April 1973 and later on took various
assignments at Senior Positions in world wide Honda net work, such as staff member of UK, Hongkong and President of Honda Czech Republic, Honda France and General Manager of Honda Beijing Office. Before joining the Company, he held the position as General Manager of Operating Office of China, ASEAN succeeding by Operating Office No.1 (North America, South America and Europe) at Honda Head Office, Japan. His specialization is Overseas Sales of Automobiles and Motorcycles. Mr. Nakagawa is currently on the Board of the following companies: No Name of Company . 1 2 Hero Honda Motors Limited Hero Honda Finlease Limited Joint Managing Director Director Nature of Office
MR. SUMIHISA FUKUDA Mr. Sumihisa Fukuda was appointed as an Additional and Technical Director in the Whole-time employment of the Company by way of passing a resolution by Circulation on May 13, 2008 . Mr. Fukuda was born on December 12, 1955 at
Nagasaki , Japan and after completing a course in Mechanical Engineering, he joined Honda Motor Co., Ltd., Japan as an Engineer & has completed various assignments in Honda. In recent past, he was working as Manager Asian Autoparts Co. Ltd., Thailand . He brings with him rich experience of more than 30 years. Mr. Fukuda is currently on the Board of the following companies: No Name of Company . 1 2 Hero Honda Motors Limited Hero Honda Finlease Limited Whole-time Director Director Nature of Office
MR. OM PRAKASH MUNJAL Mr. Om Prakash Munjal is also founder Director of the Company. He is the CoChairman and CEO of Hero Cycles Limited, the largest producer of bicycles and bicycle components in the world. Under his leadership, Hero Cycles has found
its way into the Guinness Book of World Records. In 1990, Mr. Munjal was awarded the "Indira Gandhi National Unity Award" by the President of India. Mr. Om Prakash Munjal is currently on the Board of the following companies: No Name of Company . 1 2 3 4 5 6 7 8 9 10 11 Hero Cycles Limited Majestic Auto Limited Hero Financial Services Limited Hero Motors Limited Munjal Auto Industries Limited Shivam Autotech Limited Highway Industries Limited Hero Global Design Limited Easy Bill Limited Hero Honda Motors Limited Hero Honda Finlease Limited Co-Chairman and Managing Director Chairman & Director Chairman & Director Director Director Director Director Director Director Director Director Nature of Office
MR. SUNIL KANT MUNJAL Mr. Sunil Kant Munjal born on December 14, 1957 , at Ludhiana is aged 49 years. After his graduation he underwent training in the field of Mechanical Engineering. Presently he is Managing Director of Hero Cycles Ltd. (C.R. Division) and Hero Corporate Services Limited. In 2004-05, Mr. Munjal became the President of Confederation of Indian Industry (CII), India 's premier business association. He is also on the Board of Indian School of Business, Hyderabad and is visiting faculty at various Business Schools and Corporate. His specialization is in Business Studies and Holistic Management Practices. Apart from the above he is a member of Prime
Minister's Council on Trade and Industry, Consultative Group on Industry, Planning Commission, Government of India and SEBI Committee on Disclosures. He has made significant contributions to some of the Nationallevel Economic and Labour reforms in India either by chairing some of the reforms Committee or as a member. Mr. Sunil Kant Munjal is currently on the board of the following companies: No Name of Company . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Hero Management Service Limited Hero Corporate Service Limited Shivam Autotech Limited Hero Cycles Limited DCM Shriram Consolidated Limited Easy Bill Limited Hero Honda Motors Limited Hero Motors Limited Satyam Auto Components Limited Flourish Manufacturing & Automotive Ltd. Daimler Hero Commercial Vehicles Limited Abhayuday Manufacturing & Automotive Ltd Arrow Infrastructure Limited Hero Mindmine Institute Limited Director Director Director Chairman & Managing Director Chairman Chairman Managing Director Director Director Director Director Director Director Director Nature of Office
MR. MASAHIRO TAKEDAGAWA Mr. Masahiro Takedagawa was appointed as an Additional Director on the Board of the Company w.e.f. May 30, 2006 . He joined Honda Motors Co., Ltd, Japan as an Area Manager in the Car Retail Operations. He was thereafter deputed in the Sales & Marketing Division of Honda Motors at USA , Italy & Thailand . Before joining Honda Siel Cars India Limited as President & CEO in April 2005, he was stationed at the Product Planning & Marketing office at Tokyo. Mr. Takedagawa holds the directorship and membership of the Committee(s) of the Board of the following companies: No Name of Company Nature of Office
. 1 2 3 Honda Siel Cars India Limited Honda Siel Power Products Limited Hero Honda Motors Limited President & CEO Director Member-Audit Committee Director
MR. TAKASHI NAGAI Mr. Takashi Nagai has been appointed as an Additional Director on the Board of the Company w.e.f May 11, 2007. After completing his graduation from Keio University, Japan in the year 1982, he joined Honda Motors Co., Ltd, Japan. Presently, he is working as Executive Vice President, Asian Honda Motor, Thailand . Mr. Nagai brings with him vast experience in Automobile Industry.
MR. SATOSHI MATSUZAWA Mr. Satoshi Matsuzawa aged 48 years has been appointed as an Alternate Director to Mr. Takashi Nagai w.e.f. April 24, 2008 . He was born on March 2, 1960 at Tokyo , Japan . After completing his graduation in Science and Engineering from Waseda University , Japan in the year 1982, he joined Honda Motors Co., Ltd, Japan . Currently, he holds the position of General Manager, Overseas Operations. Mr. Matsuzawa is on the board of the following companies.: No Name of Company . 1 Hero Honda Motors Limited Director Nature of Office
MR. PRADEEP DINODIA Mr. Pradeep Dinodia was appointed as an Additional Director on the Board of the Company on March 31, 2001 . Mr. Dinodia is a fellow member of The Institute of Chartered Accountants of India and a senior partner in the Delhibased Chartered Accountancy firm M/s. S.R. Dinodia & Company. He has considerable experience in corporate affairs and allied legal and taxation matters. Mr. Dinodia holds the directorship and membership of the Committee(s) of the Board of the following companies: No Name of Company . 1 DCM Shriram Consolidated Limited Director Chairman - Shareholders & Investors Grievance Committee Member- Audit Committee Member - Committee of Board for payment of Nature of Office
Remuneration to Managing Director and WholeTime Director 2 3 4 DFM Foods Limited Hero Corporate Services Limited Hero Honda Motors Limited Director Chairman - Audit Committee Director Chairman - Audit Committee Director Chairman- Audit Committee Member - Shareholder & Investors Grievance Committee Member -Remuneration Committee 5 6 7 Micromatic Grinding Technologies Limited Ultima Finvest Limited Director Shriram Pistons & Rings Limited 8 9 RSWM Limited Exports Limited Director Chairman - Audit Committee Member - Remuneration Committee Director SPR International Auto Director Director
GEN. (RETD.) VED PRAKASH MALIK Gen. (Retd.) Ved Prakash Malik was appointed as an Additional Director on the Board of the Company on May 4, 2001 . Gen. Malik retired as Chief of the Indian Army in September, 2000. During his distinguished military career, he received number of awards including the Ati Vishista Seva Medal (AVSM) and the Param Vishishta Seva Medal (PVSM) - the highest National award for distinguished services. He holds the directorship and membership of the Committee(s) of the Board of the following companies: No Name of Company . 1 Hero Honda Motors Limited Director Member- Audit Committee Member- Remuneration Committee 2 Reliance Energy Limited Director Member- Audit Committee Member- Remuneration/Nomination Committee Member- Safety & Environment Committee Nature of Office
3 4
Director Director
MR. ANALJIT SINGH Mr. Analjit Singh was appointed as an Additional Director on the Board of the Company on September 28, 2004 . He is currently Chairman of Max India Limited, New Delhi. Mr. Singh brings with him rich and varied experience in businesses like Pharmaceuticals, telecom services, packaging, specialty plastic products and electronic components. Mr. Singh is currently on the board of the following companies: No Name of Company . 1 2 3 4 5 6 7 8 Hero Honda Motors Limited Max India Limited Max New York Life Insurance Company Limited Max Healthcare Institute Limited IDBI Limited Max Medical Services Limited Acquire Talent Services Limited Max Health Staff International Limited Chairman and Mg. Director Director Chairman Director Chairman Director Chairman Chairman Nature of Office
9 10 11 12 13
Malsi Holdings Limited Malsi Estates Limited Hero Corporate Services Limited Vodafone Essar Limited Neeman Medical International (Asia) Limited
DR. PRITAM SINGH Dr. Pritam Singh was appointed as an Additional Director on the Board of the Company on September 28, 2004 . He is author of seven academically reputed books and over 50 research papers. Dr. Pritam Singh is one of the pioneers of Management Education in India who has devoted his life to the development of Management Education in India and abroad. Dr. Singh received the "Padam Shri" award in 2003 for his contributions in this field. He is also on the Board of the following companies and their committees: No Name of Company . 1 Hero Honda Motors Limited Director Member - Audit Committee Member - Shareholder's Grievance Committee 2 3 4 Parsvnath Developers Limited Dish TV India Limited Indian Medicines Pharmaceuticals Corporation Ltd. Director Director Director Nature of Office
"Hero Honda Passport Programme" - CRM Programme launched 2001 New motorcycle model - "Passion" introduced One million production in one single year New motorcycle model - "Joy" introduced 5,000,000th motorcycle produced 2002 New motorcycle model - "Dawn" introduced New motorcycle model - "Ambition" introduced Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan as Brand Ambassadors 2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "CD Dawn" introduced New motorcycle model - "Splendor +" introduced New motorcycle model - "Passion Plus" introduced New motorcycle model - "Karizma" introduced 2004 New motorcycle model - "Ambition 135" introduced Hero Honda became the World No. 1 Company for the third consecutive year. Crossed sales of over 2 million units in a single year, a global record. Splendor - World's largest selling motorcycle crossed the 5 million mark New motorcycle model - "CBZ*" introduced Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles 2005 Hero Honda is the World No. 1 for the 4th year in a row New motorcycle model - "Super Splendor" introduced New motorcycle model - "CD Deluxe" introduced New motorcycle model - "Glamour" introduced New motorcycle model - "Achiever" introduced First Scooter model from Hero Honda - "Pleasure" introduced 2006 Hero Honda is the World No. 1 for the 5th year in a row
Year 2008
NDTV Profit Business Leadership Award 2008 Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008" TopGear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards NDTV Viewers Choice Award to Hunk in Bike category IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards - Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards: No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe
2007
The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine. "Bike of the Year" - CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most Trusted Company , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies. No. 1 in automobile industry by TNS Corporate Social Responsibility Award.
Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006: Splendor Plus (Executive) CD Deluxe (Entry)
Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006. Hero Honda Splendor rated as India's most preferred twowheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & threewheelers - Complete (Non SSI) by Engineering Export Promotion Council.
The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category)
2005 Awaaz Consumer Awards 2005 - India's most preferred twowheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 2003 Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine. 2002 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence.
Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance. 2001 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment. 1999 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. 1995 The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. 1995 National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award Presented by President of India). 1991 Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd.
Marketing initiatives like the Hero Honda Passport Programme-called Suhana Safar-whereby the owner of a Hero Honda pays just Rs 95 a year and gets invited to concerts, and events sponsored/organized by the company or its dealers. They
also get points on getting their bikes serviced and on purchase of spares and accessories. These can be converted into gifts like wallets and pen sets Two-year warranty scheme on motorcycles bought after April 2001 Working on the below 100CC and above 100CC motorcycle segments. To launch an above 100CC bike in mid-2002
Conducting large scale market surveys to understand the needs of the customer better Cost cutting measures to improve profitability
NARROW PRODUCT RANGE: Hero Honda has just one product-CBZ-in the above 100CC range. That too isn't doing well DEALERS MAY GET COMPLACENT: with so much competition emerging for Splendor and Passion (which together account for 80 per cent of sales), complacency could prove to be fatal as customers may get driven to the competitors MOTORCYCLE MARKET GROWTH: Motorcycles have grown at a healthy rate of over 25 per cent for the last three to four years. But how long can it continue? PRICE COMPETITION FROM BAJAJ: If Bajaj continues to price its products competitively, customers may get driven away from Hero Honda
Attacking Hero Honda's Splendor and Passion head-on with the Aspire and Caliber Chroma. Grabbing a large piece of the pie in the below Rs 40,000 segment through the launch of BoxerCT. Providing a "better" bike, the Pulsar, at the same price of a Passion (Rs 47,000). Featuring more displacement (150 and 180 CC), a fivespeed gear box,electric start etc. Creating a niche in the high-end motorcycle market through Eliminator, which is a 175CC bike priced at Rs 85,000.
Ruthlessly cutting costs by rationalising vendor base, offering VRS, increased indigenisation.
Gen der Age 18-25 26-35 36-50 51 or above Occ upation Student Employed Own Business Others
Male Female
97% 3%
Independent
TOTAL
Excellent Fair Very Dissatisfie d Some what Satisfied Very Satisfied Totally Satisfied 3 3 Good 35 3 Very Good 43 1 12
3 38 46
SATISFACTION
Total
38
44
12
13 100
Chi-Square Test
Value Pearson ChiSquare Likelihood Ratio Linear-by-Linear Association N of Valid Cases 223.132 180.208 84.393
df 9 9 1
100
Analysis: The significance value is zero and it indicates satisfaction and Bike design are dependent and there is strong relationship between the two variables. When design is not good customer are dissatisfied and when design is good customers are totally satisfied. Interpretation: A low significance value (typically below 0.05) indicates that there may be some relationship between the two variables. While the chi-square measures may indicate that there is a relationship between two variables. In the table we can see that 6 customer says bike design is fair they are some what satisfied and very dissatisfied. People who say very good design (44) they are very satisfied.
Satisfaction Level
Total SATISFACTION Very Some what Dissatisfied Satisfied BIKE PRICE Poor Fair Good Very Good Excellent 4 4 8 12 17 37 Very Satisfied 21 25 46 Totally Satisfied 13 13 12 12 38 25 13 100
Total
Chi-Square Tests Value df Pearson ChiSquare Likelihood Ratio Linear-by-Linear Association N of Valid Cases 180.312 156.278 69.965 100 12 12 1
Analysis and Interpretation: A low significance value (typically below 0.05) indicates that there is relationship between the two variables. The significance value is zero and it indicates satisfaction and Bike price are dependent and there is strong relationship between the two variables. When price is high and poor customer are dissatisfied and when price is low is good customers are totally satisfied. People who said bike price is poor (4 customer) they are dissatisfied and people who said bike price is excellent (13) they are totally satisfied. It shows both variables are independent.
FINDINGS:
Customers expectations changes day by day because of change in life style, increase in income level, change in preference, urbanization, etc., As the customer expectation varies from person to person so it is difficult for the company to satisfy the customers but to survive in the market and because of competition company has to satisfy the customer expectation to attract new customer and retain the existing customers.
V e
ry
ACCOUNTABILITY AND INFORMATION Overall, 46% of people are very satisfied with overall performance of the Hero Honda motors and services. 44% of the Hero Honda customers feel that Bike design and road grip of the Hero Honda is very good and 12% customer feels design and road grip is excellent. 38% of customer says price of the Hero Honda good and affordable. About the comfort of the bikes of Hero Honda, 57% customer of Hero Honda feels very good comfort. 81% feels that company need to improve their bike design and outlook of the bikes. 75% of Hero Honda customer feels Hero Honda needs to promote their moderately. Overall, 69% customer says overall performance of the Hero Honda should improve. Nearly 66% of Hero Honda customers have changed their bikes, before buying a Hero Honda bike, most of customers have used competitors bike and customers changed their bikes because customers wanted new brand, new style bikes and latest technology (DTS-I, self starter) and few customers have changed moped and scooters to Hero Honda bike. Few customers have changed because of mileage reason.
When people recommending to buy a bike people recommends, Hero Honda (46%), and Bajaj (42), TVS (6%), Other Bikes (6%)
CONCLUSION
Customer expectations play a key role in a companys success and customer expectations are based on customers experience with the product or service; feedback received from friends, colleagues & relatives: or may be based on their present needs. To have a successful business the company must satisfy the customers. As customer needs and wants i.e. expectations are dynamic in nature company has to monitor the trends in the changes in the customer needs and wants continuously so that they can modify their service or product continuously to meet the customer expectation level in the long run.
Most of the Hero Honda customers are satisfied with Hero Honda but because of competition, change in life style, increase in income level, change in the trends are making the people to expect more from the company. If Hero Honda considers our findings, suggestions and conclusion then it will be helpful in increasing the customer base of Hero Honda. This study recommends measures that the Hero Honda can initiate to improve the product and service quality, enhanced satisfaction and loyalty of customers
Reference:
WWW.AUTOMOBILEINDIA.COM (TWO WHELLER INDUSTRY INFROMATION) WWW.HEROHONDA.COM (Hero Honda company information) WWW.EN.WIKIPEDIA.ORG/WIKI/ECONOMY perception) (Basic definition of expectation and