INTRODUCTION OF INDUSTRY

Throughout the centuries man has striven to expand his capabilities through the use of
machine. His ever inventive mind has constantly devised ways to use tool to increase
his abilities to explore the world around him. To go faster, deeper, higher and further
than before. Coupled with his need to find new thrills, new adventures and new
modes of transportation, the invention refinement of the motorcycle
seems an inevitable outcome. It would seem that Michelangelo conceived of the bicycle

th
as early 14 century And his drawing shows a remarkable resemblance to the modern
day bike. It had wheels of similar size and even pedals and chain. Albeit without any
apparent means of steering.
Through never built, it was a remarkably clever design, and early bicycle makers
would have done well to study his concepts, there have, in fact been 4 machines built
based on his drawing, attesting to the viability of his design.
It wasn’t until 1869 that the first serious attempts were made to produce motor driven
bicycles. These very first were powered by steam, and driven by leather belts or as in
the case of the roper steam velocipede of 1869 by a system of levers attached to a crank
on the driven wheel.
In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or
motor bicycle, as it was the first to employ an internal combustion engine and was
designed from the ground up to be motor powered. Designed by Gottlibe Daimler it
powered by an Otto cycle engine producing about ½ horse powers. Note this design again
employed wooden wheels and Daimler dropped the twist grip controls from his 1877
design in favor of leavers on the frame.
In 1894 Hildebrand and Wolfmuller, France Worlds first production motorcycle. It
came with a 1428 cc water cooled four- stroke motor producing 2.5 bhp. And speed of
25 mph.
In 1898 orient-Aster, USA the American made production motorcycle was this entry
built by the Metz Company, in Waltham, mass, it used an aster engine that was a
French copy of the Metz Company, in Waltham, mass.
Hero Moto Crop. Page | 1
History OF COMPANY

Type : Public company

Founded : January 19, 1984
Headquarters : Haryana, Indian
Key People : Brijmohan lall munjal (Chairman and
managing Director)
Industry : Automotive
Produce : Motorcycle, Scooters
Hero Motorcycles limited is an Indian manufacturer of motorcycles and scooters. Hero is
a joint Venture that began in 1984 between the Hero Group of India and Honda From
Japan. It has been the world’s biggest manufacturer of 2-wheeled motorized vehicles
since 2001. When it produced 1.3 million motorbikes in a single year. Heros
splendor is the largest selling motorcycle its 2 plants are in Dharuhera and Gurgaon, both
in Haryana India. It specializes in dual use motorcycles that are low powered but very fuel
efficient.
India has the largest number of two wheelers in the world with 41.6 million vehicles. India
has a mix of 30 percent automobiles and 70 percent two wheeler in the country. India
was the second largest two wheeler manufacturer in the world starting in the1950s with
the birth of Automobile products of India (API) manufactured [Link] manufactured
the lambrettas but, another company, Bajaj Auto Ltd. Surpassed API and remained
through the turn of the century from its association with piaggio of Italy (manufactured of
vespa)
The license raj that existed between the 1940s and 1980s in India. Did not allow foreign
companies to enter the market and imports were tightly controlled. Customers in India
were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a dispatch department. By the
year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters.
In the mid-1980s, the Indian government regulation changed and permitted foreign
companies to enter the Indian market through minority joint ventures. The two wheeler
Hero Moto Crop. Page | 2
market changed with four indo-Japanese joint ventures: Hero, TVS Suzuki, Bajaj
Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian
market dynamics from the supply demand side. With a larger selection of two-wheelers on
the Indian market, consumer started to gain influence over the products they bought a n d
raised higher customer expectations. The industry produced more models, styling
options, price, and different fuel efficiencies. The foreign companies new technologies
helped make the products more reliable and with better quality. Indian
companies had to change to keep up with their global.
During the 80s, Hero became the first company in India to prove that it was possible to
drive a vehicle without polluting the roads. The company introduced new generation
motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary
'Fill it - Shut it - Forget it' campaign captured the imagination of commuters
across India, and Hero Honda sold millions of bikes purely on the commitment of
increased mileage. Hero Honda has consistently grown at double since
inception; and today, every second motorcycle sold in the country is a Hero. Every 30
seconds, someone in India buys Hero's top -selling motorcycle - Splendor. This festive
season, the company sold half a million two wheelers in a single month-a feat
unparalleled in global automotive history.
Hero values its relationship with customers. Its unique CRM initiative - Hero Passport
Program, one of the largest programs of this kind in the world, has over 3 million
members on its roster. The program has not only helped Hero understand its customers
and deliver value at different price points, but has also created a loyal community of brand
ambassadors.
Performance vis-à-vis Industry
The Indian two wheeler industries has seen a paradigm shift from being a regime of
regulation and tight control in the 1980s to a more liberalized and a competitive
present day era. After missing out on the initial boom in two wheeler segment during
the period of 1993-1996, Hero has emerged as a world leader. The gap between
motorcycles sold by Hero and its closest rival is approximately 1 m units (23% of
industry size). One of the reasons for the tremendous performance of Hero is the
significant increase of share of motorcycles in the two-wheeler segment, from 42% in
Hero Moto Crop. Page | 3
 FY99 to 77% in FY04. No d o u b t , t h a t t h e s h i f t i n preference of Indian
population from scooters and mopeds towards motorcycles has facilitated the growth of
Hero. However its performance vis-à-vis industry indicates that the performance of Hero
was better than the industry peers, barring two years. In the seven-year period ending
FY04, it has achieved a CAGR of 30% in two-wheeler volumes against 11% of the
industry.
Excellent Collaborator Relationship
Hero is now the leading two-wheeler Company in India in terms of net sales (sales less
excise duty value, which was Rs 3171 crores). It is both the leading two wheeler
manufacturer and sales operation among H o n d a ’ s worldwide operations. The
Company has maintained excellent relationship with all stakeholders including its
collaborators. Hero has emerged as the most successful joint venture Company of
Honda in the world, their relationship over 116 years old now.

CONSUMER BUYING BEHAVIOUR

The main aim of marketing is meet and satisfy target customers need and wants buyer
behavior refers to the peoples or organization conduct activities and together with the
impact of various influence on them towards making decision on purchase of product
and service in a market. The field of consumer behavior studies how individuals, groups
and organization select, buy, use and dispose of goods, service, ideas, or experience to
satisfy their needs and desires understanding consumer behavior and knowing customer
are never simple. The wealth of products and service produced in a country make our
economy strong. The behavior of human being during the purchase is being termed as
“Buyer Behavior”. Customer says one thing but do another. They may not be in touch
with their deeper motivations. They are responding to influences that change their mind
at the last minute. A buyer makes take a decision whether save or spend the money.

Definition of Buyer Behavior:-

Buyer behavior is “all psychological, Social and physical behaviors of potential
customers as they become aware of evaluate, purchase, consume and tell others
about product & service.

Hero Moto Crop. Page | 4

Consumer Buying Decision Process
There are following five stages in consumer buying decision process.
1. Problem identification:-
The buying process starts when the buyer recognizes a problem or need. The need can
be triggered by internal or external stimuli. Marketers need to identify the circumstances
that trigger a particular need. By gathering information from a number of consumers,
Marketers can identify the most frequent stimuli that spark an interest in a product
category. They can then develop marketing strategies that trigger consumer interest.
2. Information Search:-
The consumer tries to collect information regarding various products/service. Through
gathering information, the consumer learns about completing brands and their features.
Information may be collected form magazines, catalogues, retailers, friends, family
members, business association, commercial, chamber of commerce, telephone directory,
trade fair etc. Marketers should find out the source of information and their relative
degree of importance to the consumes.
Personal Sources: Family, friends, neighbor, as quittances.
Commercial Source: Advertising, sales persons, dealers, packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources: Handling. Examine, using the product.
3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer in all buying
situations. There is several First, the consumer processes, some basic concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits from the product solutions.
The marketer must know which criteria the consumer will use in the purchase decision.
4 . Choice of purchasing decision:-
From among the purchase of alternatives the consumer makes the solution. It may be
to buy or not to buy. If the decision is to buy. The other additional decisions are:
Which types of bike he must buy? From whom to buy a bike?
How the payment to be made? And so on. The marketer up to this stage has tried every
means to influence the purchase behavior, but the choice is properly consumers. In the
Hero Moto Crop. Page | 5
evaluation stage the consumer forms preferences among the brands in the choice set. The
consumer may also form an intention to buy the most preferred brand.
5. Post Purchase Behavior:-
After purchase the product, the consumer will experience the same level of product. The
Marketer’s job not end when the product is buying must monitor post-purchase
satisfaction, post-purchase action, post-purchase use and disposal
Post Purchase Satisfaction:-
The buyer, satisfaction is a function Of closeness between the buyer, S expectation and
the products Perceiver performance. The larger the gap between expectation and
performance, the greater the consumer dissatisfaction.
Post purchase Action:-
The Consumer, S satisfaction or dissatisfaction with the product influence subsequent
behavior. If the consumer satisfied, he or she will exhibit a higher probability of
purchasing the product again. Dissatisfaction consumer may abandon and return the
product.
Post-Purchase Use or Disposal:-
The marketer should also monitor new buyers use and dispose of the product. If
the consumer store the product in a close, the product is probably not very
satisfying. If the consumer throws the product away, the marketer needs to know
how they dispose of it; especially it can be hurt the environment
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as follow:-
(1) It consists of mental and physical activities which consumers undertake to get
goods and services and obtain satisfaction from them.
(2) It includes both observable activities such as walking through the market to examine
merchandise and making a purchase and mental activities-such as forming attitudes,
perceiving advertising material, and learning to prefer particular brands.
(3) Consumer behaviors are very complex and dynamic to constantly changing. And
therefore, management need to adjust with the change otherwise market may be lot.
(4) The individuals specific behaviors in the market place is affected by internal factor,
such as need , motives, perception, and attitudes, as well as by external of enviourmental
Hero Moto Crop. Page | 6
influences such as the family social groups, culture, economics and business influences.

PROBLEM DEFINATION
To know the best consumer buying behavior and demand into the minds of consumer of
Bhubaneswar city because always consumer say something and does something. There
are many companies manufacturing motorcycles into the market, at the same time as
there are many companies manufacturing motorcycles, idea about thinking of customer
on whether, what, how, and for whom to purchase the motorcycle.
Therefore, research is required to measure present consumer buying behavior at the
purchase of Hero bike. so the researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the motorcycle.

SCOPE OF STUDY
 The main scope of the study is limited to Bhubaneswar city.
 It also analysis the benefits accruing to the company as a result of those service.
 This study has been made to find the level of satisfaction the customer has
regarding the service provider by bike place.

OBJECTIVES OF STUDY

 To know market position of Hero bike in the market.

 To know consumer behavior for purchase of two wheeler bike.

Limitation of study

 When the buyers are busy we can’t get accurate data from them.

 According to the time limit of my project I can cover only the some area.

Hero Moto Crop. Page | 7

  During survey some respondents may not give answer in a proper manner

RESERCH METHODOLOGY
(A)Introduction
Marketing research is the function which links the consumer,customer and public
to the marketers through information used to identify and define marketing,
opportunities and problems, generates refine marketingaction;monitor marketing
performance; and improve understanding of marketing as a process.
Marketing research specifies the information required to address these issues;
designs the method for collection information manages and implements the data
collection process; analysis the results and communication the findings and their
implication.

(B)Research definition:
“Research is careful inquiry or examination to discover new information and relationship
and to expand and to verify exiting knowledge,”
Research always starts with questions or a problem. Its purpose is to find answer to
questions through the application of the scientific method. It is a systematic and
intensive study directed towards a more complete knowledge of the
subject studies.
(C) Research design
“Research design is the plan, structureand strategy of investigation conceived so as to
obtain answer to research question and to control variance.”- BY KERLINGER From
definition it is evident that research design is more or less a blueprint of research. At the
outset may be noted that there are several ways of studying and tackling a problem.
There is no signal perfect design. The research design can be classified in to true broad
categories:
(a)Exploratory
(b)Descriptive

Hero Moto Crop. Page | 8

(c)Casual
Exploratory research is focus on the discovery of ideas. Exploratory research is
carried out to define problems and developed hypothesis to test later. An exploratory study
is generally based on the secondary data that are reading available. It does not have to
change his focus of direction, depending on the availability of new ideas and
relationship among variables.
Descriptive studies are undertaken in many circumstances. Descriptive studies can be
complex, determining a high degree of scientific skill on the part of the researcher.
Casual research helps in determined cause and effect relationship. Between two or more

variables.
The present study seeks to find out the consumers attitude towards buying of bike. The
study also aims at findings out the drawbacks of the marketing set up of Hero moto
crop. So this makes the study a descriptive one.
(D)Sources of Data
The sources of data collection methods are as follows.
a) Primary data:-
The primary data is that which details we collect first time from the market and also
used first time in the research. I also say that the information is first time in the research
decision. To collect the primary data questionnaire is prepared structure non- disguise
questionnaire is prepared.
b) Secondary data:-
Secondary data are those data which are already collected by someone for some purpose
and are available for the present study; secondary data are already collected by the
company’s records and other library’s books. When the secondary data are sufficient,
the researcher has to be satisfied with the primary sources of data. Secondary data can
be used as bases for comparison with primary data have been collected by questionnaire.
(E) Data Collection Method
Researcher instruments is the tool by which the researcher can do research on specific
problems or objective. The most popular researcher instrument for collection data is
“Questionnaire” for a particular investigation. It is simple for a moiled set of questions

Hero Moto Crop. Page | 9

presented to respondents for their answers. Due to this flexibility, it is most common
instrument used to collect the primary data. During the pre- testing of questionnaire, I
seen the reaction of respondents and suggestions required to make change in research
instrument.
The questionnaire contains three types of questions.
Open-ended question:- It is helpful in knowing what is uppermost in the mind of the
respondents. It gives complete freedom to the respondent.
Dichotomous questions :- It has only two answers in form ‘yes’ or ‘n’, ‘true’ or
‘false’, ‘use’ or ‘do not use’. So the respondent is offered two or more choice.
Multiple-choice question:- In this, the respondent is offered two or more choice.

(F) Sampling plan

Sampling is a process of obtaining. The information about the entire population by
examine a part of it .The effectiveness of the research depends on the sample size
selected for the survey purpose.
Sample Site:- The survey was conducted in Bhubaneswar.
Sampling Unit:- It means “Who is to be surveyed”. Here target population is decided
and it is who are interested to purchase “Bike” and sampling frame is developed so
that every one in the target population has known chance of being sampled. So the
survey is conducted particularly in Bhubaneswar City.
Sample size:- For the purpose of proper survey, there is need of perfect research
instruments to find out sample size for more accurate result about buying behavior
of bike. The sample size is 100 respondents.
(D)Sampling Method:-
A Stratified random sample is one where the population is divided in to mutually exhaustive
strata or sub-group and then a simple random is selected within each of strata on age
groups, occupation etc. It may be noted that stratification does not means absence of
randomness. I use a simple random sampling method.

Hero Moto Crop. Page | 10

Statically Formula for Sample Size is:-

n=p*q (z/e) 2
Were, n=Sample
Size
p=0.80(probability of satisfied customer)

q=0.20(I-p)

z=1.96(The z (95%) score associated with the degree of Confidence)

e=0.05 (tolerable error)

n= (0.84)*(016)*(1.96/0.05)2

= (0.1344)*(1536.64)

=206.52
Sample Size n=206.52

Here, from calculation n=206.52 is found but for the simplicity of the study n=206.52
have taken.

Hero Moto Crop. Page | 11

 Data Analysis and Interpretation

1. AGE WISE CL ASSIFICTION

Age (in year) No. of respondents Percentage (%)

18-20 30 30
21-25 37 37
26-30 15 15
31-35 06 06
36-40 07 07
41& 05 05
above
Total 100 100

100
90
80
70
60
50 No. of respondents
Percentage (%)
40
30
20
10
0
18-20 21-25 26-30 31-35 36-40 41 Total

(Sources: Questionnaire-personal Detail)

Comment:-

Hero Moto Crop. Page | 12

 Above Graph shows are 30% of respondent in age group of 18-20, 37%of
respondent in age group of 21-25, 15% of respondent in age group of
26-30, 7% and 5% respondent are come in 36-40 and 41&above.

2. OCCUPATION WISE CLASSIFICATION

Occupation No. of respondents Percentage (%)

Servicemen 47 47
Studen 30 30
t
Business 12 12
Profession 08 08
Other 03 03
sTota 10 10
lll 00 0

100
90
80
70
60
50
40 Series1
30 Series2
20
10
0
n t s n s l
tio en en es sio
r ta
a em d is n s he To
cu
p
vic St
u
Bu of
e Ot
Oc Se
r Pr

Comment:-
Above Chart Shows that 47 respondent are Servicemen out of 100 and 30
are the students. 12 respondents are businessman.
Hero Moto Crop. Page | 13
3. INCOME WISE CL ASSIFICATION

Income Level No. of respondents Percentage (%)

<= 5000 54 54
5000-10,000 25 25
10,000-15,000 11 11
15,000-20,000 07 07
20,000 Above 03 03
Total 100 100

Income Level
Chart Title 27%

<= 5000
5000-10,000 50%

10,000-15,000
15,000-20,000
13%
20,000 Above 6%
Total
2% 4%

(Sources: - Questionnaire – Personal Detail)

Comment:-
Above graph shows that 54% of respondents are income in <=5000 income
Hero Moto Crop. Page | 14
level, Second 25% of respondents are of 5000-10,000 income level. 11%
of respondents are of 10,000-15,000, 7% of respondents are of 15,000-
20,000 and remain 3% of respondents above 20,000 of income level.

4. SOURCES OF FINANCE

Sources of Finance No. of respondents Percentage (%)

By cash 45 45
By Loan 55 55
Total 100 100

Source of finance

45 by loan
by cash
55

Comment:-

From the above table it is clear that 55% respondent buy bike by taking loan
whereas 45% respondent have bought bike through cash purchase.

Hero Moto Crop. Page | 15

5. ANALYSIS OF PREFERING AUTO MOBILE

Auto Mobiles No. of respondents Percentage (%)

Rohan 20 20
Dhru 17 17
Siddhi 11 11
Other 52 52
Total 100 100

Chart Title10% 9%

Auto Mobiles 6%

Rohan 50%
Dhru

Siddhi

Other 26%
Total

Comment:-
Above Chart shows that out of 100, 52 % respondents prefer other
Automobile to purchase bike. 20 % respondents prefer Rohan Automobile to
purchase bike.

Hero Moto Crop. Page | 16

6. FROM WHICH SOURCE YOU PURCHSE BIKE?

Sources No. of respondents Percentage (%)

News Paper 12 12
T.V. Advertisement 14 14
Friends 26 26
Others 48 48
Total 100 100

7%

Sources
Chart Title
6%
13%
News Paper
50%
[Link]-
tisement

Friends

Others
24%
Total

Comment:-

Above graph shows that 48 % respondents are come to know from the ‘other’.
Then 26 % respondents are come to know from the ‘friends’. 14 % & 12 %
Hero Moto Crop. Page | 17
respondents are come to know from the T.V. Advertisement & news paper.

7 AGE / USAGE OF COMPANIES MOTORCYCLE

Age (in Hero Bajaj TVS Yamaha Honda Total

year) Honda
18-20 15 05 03 02 05 30
21-25 23 06 03 03 02 37
26-30 09 02 01 03 00 15
31-35 02 00 01 01 02 06
36-40 01 2 02 01 01 07
41& 01 01 00 02 01 05
Total 51 16 10 12 11 100
100o1

100
90
80
70
60 Hero
Bajaj
50 TVS
40 Yamaha
Honda
30
Total
20
10
0
18-20 21-25 26-30 31-35 36-40 41& Total
above

Comment:-
This table reveal that most of the people between 18-20 age group prefer hero Honda, as well as
in the age group of 21- 25 . Whereas highest number of people in the age group of 26-30 prefer
Hero Moto Crop. Page | 18
Hero as their first choice..

8. Who is decision maker for purchasing bike in your family?

Sources No. of respondents Percentage (%)

Father 46 46
Self 42 42
Mother 10 10
Others 02 2
Total 100 100

No. of respondents
Father Self Mother Others Total
23%

50%

21%
5%

1%

(Sources: - Questionnaire – personal detail & Que-4)

Comment:-
Hero Moto Crop. Page | 19
 Above Graph shows that 23 % respondents take decision by father
for purchasing bike. And 21 % respondents are take decision by
self for purchasing bike.

9. WHAT FEATURES YOU CONSIDERS WHEN YOU PURCHASE BIKE PLEASE

GIVES THE RANK.

Weight age 6 5 4 3 2 1
Attributes Excellent V eryGood Average Poor Very Poor Tota Total score
Good l
Price 30 20 18 16 10 06 100 426

Less maintenance 18 11 17 30 13 11 100 358

Style 21 18 19 10 11 21 100 355
Durability 10 17 16 24 21 12 100 335
Mileage 24 19 14 17 09 17 100 381
Easy Driving 20 12 21 23 10 14 100 367
Brand Reputation 17 19 14 21 17 12 100 362
Color 28 19 18 13 10 12 100 406
Pick up 19 22 15 20 14 10 100 382
Total 187 157 152 174 115 115 900 3370

Attributes Weight age

Price 426
Less maintenance 358
Style 355
Durability 335
Mileage 381
Easy Driving 367
Brand Reputation 362
Color 406
382 382
Total 3370

Hero Moto Crop. Page | 20

 Weight age
3500
3000
6 Excellent
2500 5 V ery Good
2000 4 Good
3 Average
1500
2 Poor
1000 1 Very Poor
500 1 Total
1 Total score
0
r l
ice ce yle lit
y
ag
e ng on lo up ta
Pr nan St abi ile r ivi tati Co ick To
te r M D pu P
ain Du sy Re
m Ea d
ss an
Le Br

Less
Mente
Weight age nance
5%
Price Style Durability
6% 5% 5%

Total Mileage
50% 6%

Easy Driving
5%

Color Brand
6% Reputa-
Pick Up tion
6% 5%

Comment:-
Above chat depicts the people choice to buy Hero. Most of the people buy
Hero Because of its price, followed by low maintenance, Style, durability and
mileage. The pick up the Hero bikes got the least weight age.
Hero Moto Crop. Page | 21
10. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM

Attributes Excellent Very Good Good Average Poor Total

Available 30 24 18 16 12 100
After Service 16 35 24 15 10 100
Knowledge 20 21 23 20 16 100
Of Sales man
Service 25 18 27 19 11 100
Infrastructure 12 29 20 17 22 100
Total 103 127 112 87 71 500

500
450
400
350
Available
300
After Service
250 Knowledge Of Sales man
Service
200
Infrastructure
150 Total
100
50
0
Excellent Very Good Good Average Poor Total

Comment:
Above chart shows that 30 respondents out of 100 are available
who give Weight age on the excellent and second 35
respondents out of 100 are after service who gives Weight age
on the Very Good, 23 respondents are Knowledge of salesman
who give Weight age on the good, 27 respondents are service
who give Weight age on the good, 29 respondents are
Infrastructure who gives Weight age on the Very Good.

Hero Moto Crop. Page | 22

 11. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU
MOST.

Attributes Excellent Very Good Good Average Poor Total

Festival Offer 43 21 12 14 10 100
Exchange Offer 15 31 29 12 13 100
Special Gift 20 19 30 20 11 100
Cash Discount 11 21 19 34 15 100
Anniversary Offer 14 13 12 20 41 100
Total 103 105 102 100 90 500

500
450
400
350
Festival Offer
300
Exchange Offer
250 Special Gift
Cash Discount
200
Anniversary Offer
150 Total
100
50
0
Excellent Very Good Good Average Poor Total

(Sources: - Questionnaire – personal detail & Que-9)

Comment:-
Above graph shows that in festival offer 43 respondents out of
100 are give a excellent, then in exchange offer 31
Hero Moto Crop. Page | 23
 respondents out of 100 are give a very good rank, in special
gift 30 respondents are give a good rank, in cash discount 34
respondents are give a average rank.
12. RATE THE FOLLOWING FEATURE YOU HAVE PURCHASE HERO BIKE

Attributes Excellent Very Good Good Average Poor Total

Mileage 31 26 15 18 10 100
Available 14 25 32 16 13 100
Price 16 22 42 11 09 100
After Service 20 31 25 14 10 100
Pick up 21 36 17 15 11 100
Style 18 25 15 26 16 100
Color 20 24 26 10 20 100
Average 27 24 20 15 14 100
Total 167 213 192 125 103 800

800

700

600

500
Excellent
400 Very
Good
300 Average
Poor
200
Total
100

0
r l
ag
e
bl
e ice ice up yle lo ra
ge ta
ile ia la Pr erv ick St Co e To
M Av er
S P Av
A ft

Comment: Above graph show that respondents give more weight

age to the price then after they give more weight age to the
mileage before purchasing motorcycle.

Hero Moto Crop. Page | 24

 TESTING OF HYPOTHESIS
A hypothesis is a proposition, which the researcher wants to verify. It is tall test and
my null hypotheses are,
H0: P = 0.40
H1: P ≠ 0 With reference to favorable market of Hero Bike
Now to verify this hypothesis I have taken significant level of 1 %. It means in the long
run risk of making the wrong decision is I out of every 100. Since the sample size is more
than 30 the use of Z test is most applicable.
Now,
P = Probability of Hero is given best by consumer.
Q = Probability of other company bike is given best by consumer. X = Hero bike is
purchased by consumer.
N = Total no. of Respondents.
P = x/n
=51/100
=0.51
q =1-p i.e. 0.49
Z calculation = p–q

√ PQ

100
= 0.51- 0.40

√ 0.49*0.4

100

= 0.11

√ 0.0019

Hero Moto Crop. Page | 25

 = 0.11
0.04427
= 2.48
= 2.48 < 2.56
So, How may accepted at 1 % level of significance. It may be concluded that 40 % of
consumer go for other company bike and
60 % go for Hero bike.

Hero Moto Crop. Page | 26

 Findings

 The study shows that 51 respondents are using Hero.

 The current trend is that respondents give maximum no of point to
price and mileage.
 The study show that 48 respondents are come to know from
“others” and 26 respondents are come to know from “friends”
about Hero bike.
 The study shows that 55 respondents are purchase Hero bike by
Loan and 45 respondents are purchasing Hero bike by cash.
 The study shows that 31 respondents are giving importance to
mileage.
 The study shows that more no. of respondents gives more weight
age to price. The more no. of serviceman, Students,
Businessmen, and others give more weightage to the price when
Professionals give more weightage to the mileage.
 The study shows that 46 respondents purchase bike based on their
father’s decision And 42 respondents take decision on their own to
purchase a bike.
 The study shows that 30 respondents are give rank to available in
show rooms and 35 respondents are give rank to after service.
 The study shows that 43 respondents are giving excellent to
festival offer and 41 respondents are give poor rank to the
anniversary offer.
 The study shows that 45 respondents are purchase Hero bike whose
salary is below 5000 income.

SUGGESTIONS
Hero Moto Crop. Page | 27
 1. Hero should introduce a low price moped
2. For the promotion, company show makes road-show that will
3. Increase the sales. The company should give more concentrate on the
advertisement.
4. Hero Company should implement a new strategy to reduce the
competition and lead into the bike market.
5. As p e o p l e e x p e c t m o r e m i l e a g e p e r k i l o m e t e r , c o m p a n y
should increase the mileage of the Hero bike.
6. Hero should make a sports bike like to Kawasaki Suzuki Hyabusa
bikes which can run with maximum speeds.

SWOT Analysis
Strengths
 Ability to understand customer’s needs and wants

 Recognized and established brand name

 Effective advertising capability

Weaknesses
 R&D is not close to the Hero manufacturing plant

 Hero is vulnerable in the joint venture because

 Honda Motor Company has so much power

Opportunities
 Global expansion into the Caribbean and Central America

 Expansion of target market (include women)

 Become Indi
India’s leader in the scooter market
Threat
 Honda Motorc
Motorcycles and Scooters India can take awa
away market share and cause joint
venture to go sour
 Bajaj Motors is a strong competitor

Conclusion
Hero is the only motorbike company which is successfully introduced and run a regional
distribution model not only Orissa but also all over the country. Particularly in
Hero Moto Crop. Page | 28
Bhubaneswar it occupied a greater market share in all of its product like inverter (95%).in
other words ,it is said that Hero is the market leader in khurda district people are more
educated in this area. That’s why according to their educational qualification the choices
an preferences of the customers are varies. The annual income of the respondent is
sufficient to satisfy their luxurious wants and maintaining a better standard of living and
show the social status of others The study area the main occupation is young generation.
Most of the respondents are indulged in business to maintain their livelihood .Among the
various age groups mostly (21-25)age group consumer are preferred to buying Hero in the
study area. Among the 60% respondents are satisfied by Hero .But their problem arises in
case of ups. The main problem is competitor. Over all the respondents are satisfied, who
were using bike. The company is more successful in this area because of after sales
service, product longevity and product quality. The consumer expects extra product
features and more discount price from the company.

Efforts were directed to access the perception of the consumers at before and after
purchasing a bike. In order to collect the information for the study from consumers and
interview schedule has been developed keeping in view the objective of the study, data so
obtained are statistically processed under different measures like frequency distribution,
percentage, mean score ,standard deviation, co-relations, gap analysis etc were applied to
achieve at relevant

The performance and safety of Hero bike not only depends on the world class design and
workmanship assured by Hero but also on the parts being used in the assembly line. Even
the finest components manufactured need replacement from time to time. And to ensure
the continued impeccable performance of your vehicle, the spare parts should also be made
and replaced as good as the components fitted by Hero.
To ensure this, manufacture and procure the replacement parts according to the
specifications and standards set by us and Honda Motor Co.
As a responsible Hero bike owner, it recommend that for safety, long life and high
performance of his bike, use only Hero genuine parts.

Henceforth, overall it is said that Hero becomes the market leader in case of motorcycle.

BIBLIOGRAPHY
Books

Marketing research, [Link], Third Edition, Tata McGraw Hill Publishing

Hero Moto Crop. Page | 29

 Company Limited, New Delhi, 2000

Marketing management, Philip Kotler, Twelth (Millennium) edition,

Prentice-Hall of India Private Limited, New Delhi, 2003

GLOBAL MARKETING MANAGEMENT ([Link])

References

1. [Link]/nic/073/[Link]
2. [Link]/know/mktg/
3. [Link]/Faculty_Column/FC658/[Link]
4. [Link]/rural-economy/state-development/[Link]
5 [Link]/casestudies/catalogue/Marketing/[Link]
6 [Link]

MAGAZINES
BUSINESS TODAY
BUSINESS WORLD

NEWS PAPERS
THE TIMES OF INDIA
THE INDIAN EXPRESS
THE TELEGRAPH
ECONOMIC TIME
HINDUSTAN TIME

Hero Moto Crop. Page | 30