EXECUTIVE SUMMARY

The Indian brand’s other main attribute is dependability that the brand has been able to hammer
down by churning out machines with impeccable quality and a build to last character.
The bottom end of the market, the end where Hero gets its bread and butter and cheese and
dividends, demands machines that are long lasting. A motorcycle is a big expense for rural
customers and it is not something they can replace every 2-3 years. The rural customer would be
willing to settle down for fewer features but will not compromise on the longevity of the
machines.
And that is where Hero’s Splendor / Passion range of motorcycles have hit the bulls eye.
Literally maintenance proof in nature, these 90cc-110cc bikes have been known to last for a
decade and beyond, requiring very little maintenance. Such a long life results in terrific brand
loyalty and Splendor customers have been known to return to Hero showrooms to buy another
Splendor or upgrade to another Hero bike.
This durability and longevity of the machines has been the characteristic difference between
Hero MotoCorp and Bajaj Auto. The Pune based Bajaj Auto has seen repeat failures in the
bottom end of the market – from Caliber to Discover to Platina and to Discover Gen 2, Bajaj
Auto has never been able to pose a serious challenge to Hero MotoCorp’s Splendor and Passion
range.
At the same time, Bajaj Auto has found tremendous success in the higher capacity, sporty
commuter / sports bike market where customers start looking at the next upgrade months into a
new bike purchase. The life of the bike is never in question and is seldom tested.
Again, looking at the brand through the durability attribute, Hero comes out stronger. While we
have no doubt on Honda machines’ durability, the residents of Jauniawas, a village not far
from1 Hero’s Dharuhera, Haryana plant, having used Splendors all their life would still associate
the machine with the Indian brand.
To them, Honda is a good Japanese brand, but so are Yamaha and Suzuki. Honda too realizes its
disadvantage vis-à-vis Hero and has started working on its brand communication using, amongst
other things, a Bollywood star.

1
 INTRODUCTION
Selling of any product, there is needed to build relationship with customer. For building a
relationship there is need for knowing the customer behavior and how will be they satisfied?
This project is undertaken to know the customer behavior & satisfaction level for Hero Motor
Corp. Also through this project get awareness that which factors affect on the selling of bike
mainly in the rural area. Because the area where project was undergoing, it is almost rural area
and most population income depends on agriculture or its products.
There were some limitations while doing the project. The data was collected by personal
interviews of the respondents. It was very challenging to fill up the questionnaire as most of the
population comes from rural back ground. As it was the rural area we were supposed to explain
each and every question of the questionnaire. Also many of them did not show any interest in
filling questionnaires..
This study will help Hero Motor Corp to know the most popular way by which they are
providing services and quality to the customers and to know various customers Perceptions.
From the study, we found that, the customers were highly satisfied with the products and service
of Hero Motor Corp, but there were some complaints regarding after sales service and staff of
Hero Motor Corp.
It was found that Hero Motor Corp.Motor cycle is having a good brand image in the market.
Most of the respondents considered Hero Motor Corp showroom is one of the best places to
purchase of Motor cycle.
The present is the era of customers. Customers are more knowledgeable than ever before and
because the customer is more knowledgeable, companies must be faster, more agile and more
creative than few years ago. So companies should strive to enhance customer satisfaction
through knowing their expectations regarding products.
Hero Motor Corp should improve on their after sales support, and have knowledgeable support
staff. Also Hero Motor Corp should increase the range of its targeted market.

2
 ABOUT HERO MOTO CORPS.
“Hero” is the brand name used by the Munjal brothers for their flagship company Hero Cycles
Ltd. A joint venture between the Hero Group and Honda Motor Company was established in
1984 as the Hero Honda Motors Limited At Dharuhera India. Munjal family and Honda group
both own 26% stake in the Company. In 2010, it was reported that Honda planned to sell its
stake in the venture to the Munjal family.
During the 1980s, the company introduced motorcycles that were popular in India for their fuel
economy and low cost. A popular advertising campaign based on the slogan 'Fill it - Shut it -
Forget it' that emphasized the motorcycle's fuel efficiency helped the company grow at a double-
digit pace since inception. The technology in the bikes of Hero Honda for almost 26 years
(1984–2010) has come from the Japanese counterpart Honda 
HeroMotorCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and
at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per
year. Hero MotoCorp has a large sales and service network with over 3,000 dealerships and
service points across India. Hero Honda has a customer loyalty program since 2000, called the
Hero Honda Passport Program.
The company has a stated aim of achieving revenues of $10 billion and volumes of 10 million
two-wheelers by 2016-17. This in conjunction with new countries where they can now market
their two-wheelers following the disengagement from Honda, Hero Motor Corp hopes to achieve
10 per cent of their revenues from international markets, and they expected to launch sales in
Nigeria by end-2011 or early-2015. In addition, to cope with the new demand over the coming
half decade, the company was going to build their fourth factory in South India and their fifth
factory in Western India. There is no confirmation where the factories would be built. 
History
Hero Motor Corp was started in 1984 as Hero Honda Motors Ltd.
 1956 -- Formation of Hero Cycles in Ludhiana(majestic auto limited)
 1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
 1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
 1984 -- Hero Honda Motors Ltd. incorporated
 1985 -- Hero Honda motorcycle CD 100 launched.

3
 1989 -- Hero Honda motorcycle Sleek launched.
 1991 -- Hero Honda motorcycle CD 100 SS launched.
 1994 -- Hero Honda motorcycle Splendor launched.
 1997 -- Hero Honda motorcycle Street launched.
 1999 -- Hero Honda motorcycle CBZ launched.
 2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
 2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.
 2007 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero
Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
 2008 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ*
launched.
 2010 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter
Pleasure.
 2011 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero
Honda motorcycle Hunk launched.
 2015 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour,
Glamour Fi and Hero Honda motorcycle Passion Pro launched.
 2013 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited
edition of Hero Honda motorcycle Hunk launched
 2014 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda
motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.
 2015 -- New Models of Hero Honda motorcycles Glamour, Glamour FI,
CBZXtreme,Karizma,launched.
New licensing arrangement signed between Hero and Honda.
August-- Hero and Honda part company, thus forming Hero MotoCorp and Honda moving out of
the Hero Honda joint venture. November-- Hero launched its first ever Off Road Bike Named
Hero "Impulse".
Termination of Honda joint venture

4
In December 2014, the Board of Directors of the Hero Honda Group have decided to terminate
the joint venture between Hero Group of India and Honda of Japan in a phased manner. The
Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint
venture Hero Group could not export to international markets (except Sri Lanka) and the
termination would mean that Hero Group can now export. Since the beginning, the Hero Group
relied on their Japanese partner Honda for the technology in their bikes. So there are concerns
that the Hero Group might not be able to sustain the performance of the Joint Venture alone.
Hero Moto Corp
The new brand identity and logo, Hero Motor Corp, was developed by the London firm Wolff
Olins. The logo was revealed on 9 August 2014 in London, the day before the third test
match between England and India.
Hero Motor Corp can now export to Latin America, Africa and West Asia. Hero is free to use
any vendors for its components instead of just Honda-approved vendors.
Company performance
During the fiscal year 2014-15, the company sold 3.7 million bikes, a growth of 12% over last
year. In the same year, the company had a market share of 57% in the Indian market. Hero
Honda sells more two wheelers than the second, third and fourth placed two-wheeler companies
put together. Hero Honda's bike Hero Honda Splendor sells more than one million units per year.
Recognition

Logo of Hero Honda, as the company was known till Aug. 2011
The Brand Trust Report  published by Trust Research Advisory has ranked Hero Honda in the
13th position among the brands in India.
Hero Moto Corp. – The New Brand Identity
In continuation with the post named as Hero Sans Honda, discussing the kind of options that are
available with the company to get this change as successful as possible, now lets just focus on
how the company has now gone ahead with the change earlier than the time that it itself had
asked Honda group for and paid a huge amount of money to Honda group to be able to use the
Honda name for its products till 2014.  This marks a new beginning for the company in the field

5
of motorcycle manufacturing on their own after a long journey they made together with the
major two-wheeler stalwart of the world Honda.

6
Hero Moto Corp SWOT Analysis
Strengths
1. Hero Moto Corp has a huge brand equity and one of the biggest players in the two wheelers
Indian market
2. Excellent R&D of Hero Moto Corp, and wide variety of products in every segment.
3. Excellent distribution, over 3000 dealerships and service centers 
4. Good advertising and excellent branding & marketing of Hero Moto Corp
5. More than 5000 people are employed with the organization
6. Sponsorship of many events related to sports & racing has made Hero Moto Corp a strong
brand
7. The brand has received several awards & recognition for its work in the industry
8. Ad campaigns through TV, billboards, online media etc boost the brand image
Weaknesses
1. Intense competition from Indian and international players means limited market share growth
of Hero Moto Corp
2. Most of the products have similar features and low on design and innovation
Opportunities
1. Two-wheeler segment is one of the most growing industries
2. Export of Hero Moto Corp bikes is limited i.e. untapped international markets
3. Introduction of bikes in the premium segment
Threats
1. Strong competition from Indian as well as international brands
2. Dependence on government policies and rising fuel prices can affect business margins for
Hero Moto Corp
3. Better public transport will affect two-wheeler sales

7
 ABOUT HONDA MOTORS
Honda Motor Company, Ltd.  is a Japanese public multinational conglomerate corporation
primarily known as a manufacturer of automobiles, aircraft, motorcycles, and power equipment.
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's
largest manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year. Honda became the second-largest Japanese
automobile manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the
world behind Toyota, Volkswagen Group, Hyundai Motor Group, General Motors, Ford, Nissan,
and Fiat Chrysler Automobiles in 2015.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury
brand, Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators, and
other products. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIMO robot in 2000. They have also ventured into aerospace with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 HondaJet, which
began production in 2012. Honda has three joint-ventures in China (Honda China, Dongfeng
Honda, and Guangqi Honda).
In 2013, Honda invested about 5.7% (US$6.8 billion) of its revenues in research and
development. Also in 2013, Honda became the first Japanese automaker to be a net exporter
from the United States, exporting 108,705 Honda and Acura models, while importing only
88,357.
History
Throughout his life, Honda's founder, Soichiro Honda, had an interest in automobiles. He
worked as a mechanic at the Art Shokai garage, where he tuned cars and entered them in races.
In 1937, with financing from his acquaintance Kato Shichirō, Honda founded Tōkai Seiki
(Eastern Sea Precision Machine Company) to make piston rings working out of the Art Shokai
garage. After initial failures, Tōkai Seiki won a contract to supply piston rings to Toyota, but lost
the contract due to the poor quality of their products. After attending engineering school without
graduating, and visiting factories around Japan to better understand Toyota's quality control
processes, by 1941 Honda was able to mass-produce piston rings acceptable to Toyota, using an
automated process that could employ even unskilled wartime laborers.

8
Tōkai Seiki was placed under control of the Ministry of Commerce and Industry (called the
Ministry of Munitions after 1943) at the start of World War II, and Soichiro Honda was demoted
from president to senior managing director after Toyota took a 40% stake in the company. Honda
also aided the war effort by assisting other companies in automating the production of military
aircraft propellers. The relationships Honda cultivated with personnel at Toyota, Nakajima
Aircraft Company and the Imperial Japanese Navy would be instrumental in the postwar
period. A US B-29 bomber attack destroyed Tōkai Seiki's Yamashita plant in 1944, and the
Itawa plant collapsed in the 13 January 1945 Mikawa earthquake. Soichiro Honda sold the
salvageable remains of the company to Toyota after the war for ¥450,000, and used the proceeds
to found the Honda Technical Research Institute in October 1946.
With a staff of 12 men working in a 16 m2 (170 sq ft) shack, they built and sold
improvised motorized bicycles, using a supply of 500 two-stroke 50 cc Tohatsu war
surplus radio generator engines. When the engines ran out, Honda began building their own copy
of the Tohatsu engine, and supplying these to customers to attach to their bicycles. [10][13] This was
the Honda A-Type, nicknamed the Bata Bata for the sound the engine made.[10] In 1949, the
Honda Technical Research Institute was liquidated for ¥1,000,000, or about US$5,000 today;
these funds were used to incorporate Honda Motor Co., Ltd. At about the same time Honda hired
engineer Kihachiro Kawashima, and Takeo Fujisawa who provided indispensable business and
marketing expertise to complement Soichiro Honda's technical bent. The close partnership
between Soichiro Honda and Fujisawa lasted until they stepped down together in October 1973.
The first complete motorcycle, with both the frame and engine made by Honda, was the 1949 D-
Type, the first Honda to go by the name Dream. Honda Motor Company grew in a short time to
become the world's largest manufacturer of motorcycles by 1964.
The first production automobile from Honda was the T360 mini pick-up truck, which went on
sale in August 1963. Powered by a small 356-cc straight-4 gasoline engine, it was classified
under the cheaper Kei car tax bracket. The first production car from Honda was the S500 sports
car, which followed the T360 into production in October 1963. Its chain-driven rear wheels
pointed to Honda's motorcycle origins.
Over the next few decades, Honda worked to expand its product line and expanded operations
and exports to numerous countries around the world. In 1986, Honda introduced the
successful Acura brand to the American market in an attempt to gain ground in the luxury

9
vehicle market. The year 1991 saw the introduction of the Honda NSX supercar, the first all-
aluminum monocoque vehicle that incorporated a mid-engine V6 with variable-valve timing.[18]
CEO Tadashi Kume was succeeded by Nobuhiko Kawamoto in 1990. Kawamoto was selected
over Shoichiro Irimajiri, who oversaw the successful establishment of Honda of America
Manufacturing, Inc. in Marysville, Ohio. Both Kawamoto and Irimajiri shared a friendly rivalry
within Honda, and Irimajiri would resign in 1992 due to health issues.
Following the death of Soichiro Honda and the departure of Irimajiri, Honda found itself quickly
being outpaced in product development by other Japanese automakers and was caught off-guard
by the truck and sport utility vehicle boom of the 1990s, all which took a toll on the profitability
of the company. Japanese media reported in 1992 and 1993 that Honda was at serious risk of an
unwanted and hostile takeover by Mitsubishi Motors, who at the time was a larger automaker by
volume and flush with profits from their successful Pajero and Diamante.
Kawamoto acted quickly to change Honda's corporate culture, rushing through market-driven
product development that resulted in recreational vehicles such as the first
generation Odyssey and the CR-V, and a refocusing away from some of the numerous sedans
and coupes that were popular with Honda's engineers but not with the buying public. The most
shocking change to Honda came when Kawamoto ended Honda's successful participation in
Formula One after the 1992 season, citing costs in light of the takeover threat from Mitsubishi as
well as the desire to create a more environmentally-friendly company image.
Later, 1995 gave rise to the Honda Aircraft Company with the goal of producing jet aircraft
under Honda's name.
On 23 February 2015, Honda announced that CEO and President Takanobu Ito would step down
and be replaced by Takahiro Hachigo by June; additional retirements by senior managers and
directors were expected.

10
 CORPORATE PROFILE AND DIVISIONS

Honda headquarters building in Minato, Tokyo

Honda is headquartered in Minato, Tokyo, Japan. Their shares trade on the Tokyo Stock
Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo,
Kyoto, Fukuoka, London, Paris and Switzerland.
The company has assembly plants around the globe. These plants are located in China, the
United States, Pakistan, Canada, England, Japan, Belgium, Brazil, México, New Zealand,
Malaysia, Indonesia, India, Philippines, Thailand, Vietnam, Turkey, Taiwan, Perú and
Argentina. As of July 2010, 89 percent of Honda and Acura vehicles sold in the United States
were built in North American plants, up from 82.2 percent a year earlier. This shields profits
from the yen's advance to a 15-year high against the dollar.
HONDA SWOT ANALYSIS
Strengths

1. Competence in engine manufacturing - company’s core product

2. Diversified product portfolio

3. Dominance in motorcycle and engine industries leading to a high brand awareness

4. Strong position in Asia’s motorcycle markets

Weaknesses

1. Dependence on North America to generate most of the revenue

2. Low investments in research and development (R&D) leading to innovative products

Opportunities

11
1. Increasing government regulations

2. Improving U.S. economy

3. Timing and frequency of new model releases

4. Low fuel prices are increasing the demand for pickup trucks and SUVs

Threats

1. Increased competition

2. Rising Japanese Yen exchange rates

3. Natural disasters

12
 CHAPTER 4 : REVIEW OF LITERATURE
V.Venkata Ramana and G.Somayajulu. Publisher – Excel Books. 2003 Edition. ‘Customer
Relationship Management’. The book attempts to provide the nature, concept and
implementation of CRM practices and methodology as applicable to different organizations. The
book is divided into three parts: Part I of the book provides a conceptual framework, application
of CRM in manufacturing and service sector. Part II deals with the e-CRM concepts and
implementation issues involved in its’ relevance to different sectors. Part III consists of case
studies of organizations which have implemented CRM.
Dr. C.B.Mamoria, R.L.Joshi and Dr. M.I.Mulla. 2005. Publisher – Kitab Mahal. ‘Principles
and Practice of Marketing In India’, ISBN 81-225- 0079-X. The book is very useful to
understand the concept of Marketing System and Marketing Mix. The book provides extensive
information about the marketing of consumer products, Industrial goods and agricultural goods.
It also throws light on the theme Market Segmentation, Consumer Behaviour and Product
Planning and Development. It also explains the concept of Service Marketing, Pricing Policies
and Stratigies.
Rajgopal. Publisher – Vikas Publishing House Pvt. Ltd. 2005 Edition. ‘Marketing Management
– Text and Cases’ ISBN 81-259-0773-4. The reference book is very useful for the researcher as
it provides useful information on Attributes and Thrust Areas in Marketing, Marketing
Environment and Process, Contemporary Lessons in Customerisation, Selling Concept and
Marketing Concept. The book also includes cases related to marketing policies.
Foale, Tony (2006). Motorcycle Handling and Chassis Design. Tony Foale Designs. pp. 4–1.
ISBN 978-84-933286-3-4. The book provides detailed information about the anatomy of
motorcycles. It explains in a very easy and simple language how a motorcycle works. It also
gives information about the development in the automobile technology. Pictures and diagrams
are an integral part of the book. The book is a must for every researcher working in similar field.
Cossalter, Vittore (2006). Motorcycle Dynamics. Lulu. ISBN 978-1-4303- 0861-4. The book
gives information about motorcycle dynamics. It elaborates the history of automobile technology
and the application of the principles of dynamics in the automobile industry. It also provides data
about the improvement in the performance of two wheelers after the principles of dynamics have
been applied by the manufacturers.

13
Falco, Charles M.; Guggenheim Museum Staff (1998). "Issues in the Evolution of the
Motorcycle". in Krens, Thomas; Drutt, Matthew. The Art of the Motorcycle. Harry N. Abrams.
pp. 24–31. ISBN 0892072075. The book explains the steps in the evolution of motorcycle. The
book is divided into several chapters which deal with different aspect of motorcycle engineering.
The pages from 24-31 explains how the motorcycle technology was improved to meet the
contemporary technological demands.
"Motorcycle, n.” Oxford English Dictionary Oxford University Press. March 2005. "1. A
two-wheeled motor-driven road vehicle, resembling a bicycle but powered by an internal-
combustion engine; (now) spec. one with an engine capacity, top speed, or weight greater than
that of a moped."
Stermer, Bill (2006). Streetbikes: Everything You Need to Know. MotorBooks/MBI
Publishing Company. p. 10. ISBN 0760323623, 9780760323625.The book provide detailed
information about the bikes, its types, manufacturing companies, modern technology, different
models of bikes which suit the requirement of every age group.
Prof Kolter, Prof Kella, Prof Koshy & Prof Jha Marketing Management. The reference
book is a milestone for the students of marketing. The book elaborates various techniques of
effective marketing and the various aspects concerned with the marketing policies. It also
contains case studies about marketing.

14
 OVERALL COMPARISON OF HERO AND HONDA

Hero vs Honda – The Race After Divorce

The longer the marriage, the more painful is the separation, and greater is the desire.
The Hero and Honda divorce, finalized in end 2010 is one such case. On the face of it, both
separated amicably. Honda agreed to sell its share (26% stake) to Hero at half the market price
(and only 25% of Hero’s present trading price) in exchange for higher royalties on products.
But deep down, both had begun plotting against each other even before the divorce had been
finalized.
In this case, the ‘burning desire’ on both sides was not to plot the other one’s downfall – both are
too big to fall. It was more an ambition to unseat the other one from their respective thrones –
Hero is the biggest by volumes in India while Honda leads globally.
Both companies saw this as an opportunity to increase their volumes significantly while going
hammer and tongs at the other one. In April 2011, just post the divorce; Hero MotoCorp
controlled a 50.81% share of the Indian two-wheeler market while Honda had just 13.29% share.
The data was clear in formulating the plans at two separate offices in Gurgaon – Hero cannot
grow any further in India and had to work both at defending its share and on expanding its wings
outside India. On the other hand, Honda had a huge growth opportunity in India.
It is interesting to analyze the data from the last 43 months to see how each of the erstwhile
partners has fared in their quest.
But let’s start from the point of separation and see where both of them stood in April 2011.
Hero’s Strength – Brand, Network and Money Printing Machines
In April 2011 (and even today), Hero’s strength has been its formidable brand. While Hero
Honda had been the gold standard for two wheeler brands since 1984, Hero and Honda
separately were equally formidable, Hero more so. We will come to this later.
This gigantic hydra of a network allows Hero MotoCorp to reach the farthest corners of the
country and ensures that the brand is there to sell bikes to the most rural of areas as and when the
average income in these areas reaches a point where people are able to afford bikes.
Over the last many years before the separation, Hero Honda had been focusing on the rural
market. This had allowed the company to achieve a rapid volume growth, much faster than the

15
competition. It is estimated that in April 2011, nearly half of Hero Honda’s sales came from the
rural and semi-urban areas.
Looking at the brand aspect from the distribution point of view, Hero definitely has a huge edge
over Honda, a gap that the Japanese manufacturer is working hard to fill.
The Indian brand’s other main attribute is dependability that the brand has been able to hammer
down by churning out machines with impeccable quality and a build to last character.
The bottom end of the market, the end where Hero gets its bread and butter and cheese and
dividends, demands machines that are long lasting. A motorcycle is a big expense for rural
customers and it is not something they can replace every 2-3 years. The rural customer would be
willing to settle down for fewer features but will not compromise on the longevity of the
machines.
And that is where Hero’s Splendor / Passion range of motorcycles have hit the bulls eye.
Literally maintenance proof in nature, these 90cc-110cc bikes have been known to last for a
decade and beyond, requiring very little maintenance. Such a long life results in terrific brand
loyalty and Splendor customers have been known to return to Hero showrooms to buy another
Splendor or upgrade to another Hero bike.
This durability and longevity of the machines has been the characteristic difference between
Hero MotoCorp and Bajaj Auto. The Pune based Bajaj Auto has seen repeat failures in the
bottom end of the market – from Caliber to Discover to Platina and to Discover Gen 2, Bajaj
Auto has never been able to pose a serious challenge to Hero MotoCorp’s Splendor and Passion
range.
At the same time, Bajaj Auto has found tremendous success in the higher capacity, sporty
commuter / sports bike market where customers start looking at the next upgrade months into a
new bike purchase. The life of the bike is never in question and is seldom tested.
Again, looking at the brand through the durability attribute, Hero comes out stronger. While we
have no doubt on Honda machines’ durability, the residents of Jauniawas, a village not far
from1 Hero’s Dharuhera, Haryana plant, having used Splendors all their life would still associate
the machine with the Indian brand.
To them, Honda is a good Japanese brand, but so are Yamaha and Suzuki. Honda too realizes its
disadvantage vis-à-vis Hero and has started working on its brand communication using, amongst
other things, a Bollywood star.

16
On the other hand Hero is supremely confident of its brand. Its confidence is reflected in the fact
that while Hero MotoCorp was allowed to use the Hero Honda brand on its machines till March
2014, it removed Honda from products as early as March 2012, i.e. within 15 months of the
divorce.
Hero has also done well with making most of its money from a single model and its 15 variants.
Using the Honda Cub / Splendor platform, Hero has been able to sell nearly half a million
motorcycles every month on the same mechanicals. This results in terrific economies of scale
and nice profit margins for both the manufacturer and its suppliers.
Honda’s Strengths: A Strong Spine
As things stand, Hero has been able to transfer most of Hero Honda’s goodwill to Hero
MotoCorp. Honda has a good brand name but while the urban end of the market is ready to
reward Honda for the brand name, the rural end would be difficult to convince, especially with
Hero targeting the same buyers. This is primarily the reason why Honda is facing a stiff
challenge in the lowest end of the market 90cc-110cc.
This is also the reason why Honda has launched the CD 100 Dream, a very basic motorcycle
targeted at the entry level end of the market and one which has more than a fleeting resemblance
to Hero’s Splendor and HF Deluxe range (earlier known as CD range).
Honda’s strength is its hard-work and product engineering strengths. While commuter
motorcycle technology is not rocket science, it is still a technology and can be improved. Honda
does have an edge over Hero in product engineering considering the Indian brand has just now
started spending money on R&D.
Honda also manages to get some rub-off from Hero Honda considering it was one half of the
partnership. Considering the technology for the Splendor and Passion came from Honda and
most of the positive attributes in the products are more Honda than Hero, the Japanese
manufacturer has been working hard on its communication pointing out that it is the real deal.
Hero’s Problems and Its Way Forward
Hero’s main problem is its complete historic dependence on Honda for technology. Everything
that Hero has came from Honda. Now with the Japanese manufacturer exiting the joint venture,
Hero has to take care of the technology requirements of future product offerings. Luckily, due to
the long product life of most of its range, developing a new product is not a fire-fighting mission.

17
Hero does have the time to gather a team, set up a R&D department, field an army of engineers
in product development and acquire a couple of questionable, European tech companies.
It has done all of the above. The Hero skunkworks is rolling and the next generation of products
would come with Hero technology. Thankfully, Hero has taken a holistic approach to R&D and
not just focusing on developing the next generation of Splendor. So the R&D efforts are also
pursuing several radical and exotic projects like hubless steering and hybrid engines. While none
of thee would come down to the next generation Splendor level, they do impart a certain
maturity to the Hero R&D team and would have a positive rub-off on future generation
Splendors.
Honda’s Weaknesses and the Way Forward
On the other hand, Honda’s problem is the distribution network. While Honda Motorcycles &
Scooters India has been operational in India for nearly 15 years now, the company’s dealer
network is still small. This lack of penetration is especially a problem in rural and semi-urban
areas and restricts Honda’s growth in the 90cc-110cc segment.
Honda identifies the problem and the company has grown its dealer network aggressively over
the last few years. However, it will take a few more years for the network size to match Hero’s.
Honda is Winning
There is no doubt, Honda is winning. The company’s strategy is working and the brand is
steadily working towards its ambition of becoming the largest two-wheeler manufacturer in
India. Over the last 12 months, a mere 15.47% share of the market separated Hero and Honda.
Looking at past performance, it should not take Honda more than three years to reel in Hero and
overtake it.
However, that may not be the case.
Honda’s strategy till date has focused on launching new products and adding new dealerships.
Under such a strategy initial gains are fast.
However, Hero is bound to launch a product onslaught of its own as soon as its new R&D
department settles down. A casual chat with a senior Engineering executive at Hero MotoCorp
indicated 30-40 new products under development.
Now we are not claiming that all new products would be launched – the diesel scooter doesn’t
make sense considering that diesel is now deregulated. Also, Hero has a terrible problem of
calling a new sticker job a new product.

18
 CHAPTER 6: PRODUCT PROFILE
HONDA BIKES

Honda Navi
Displacement:109.19 cc
Mileage:37.57 kmpl
Price: ₹ 42,776 - ₹ 47,850

Honda Shine
Displacement:124.73 cc
Mileage:65 Kmpl
Price: ₹ 56,937 - ₹ 62,741

19
 Honda Livo
Displacement:109.19 cc
Mileage:74 Kmpl
Price: ₹ 56,428 - ₹ 58,940

Honda CD 110 Dream

Displacement:109.19 cc
Mileage:74 Kmpl
Price: ₹ 46,615 - ₹ 48,417

20
 Honda Dream Yuga
Displacement:109.19 cc
Mileage:72 Kmpl
Price: ₹ 53,048 - ₹ 53,048

21
HERO BIKES

Hero Passion Pro

97.2 cc
84 kmpl, 87 Kmph
Rs56,087

Hero Splendor Plus

97.2 cc
80.6 kmpl, 87 Kmph
Rs53,801

22
 Hero HF Deluxe
97.2 cc
82.9 kmpl, 85 Kmph
Rs47,598

Hero Passion XPro

109.15 cc
Rs58,984

23
Hero Splendor iSmart 110
109.15 cc
61 kmpl, 92.1 Kmph
Rs62,889

Hero Passion Pro 110

109.15 cc
Rs58,184

24
 OBJECTIVES & SCOPE OF STUDY

Objectives:
1- To identify the costomer satisfaction level towords the performance of bikes.
2- To indentify the Factors which influence costomer deasion making process.
3- To identify Possible area of improvement in bike.
4- To indentify the compatetive position of various brands of two wheelers in customers
mind.
5- To know the performance of Hero and Honda.

Scope/Relevence of the study:

 The project are based on the comparative study of customer satisfaction Toward
performance of Hero and Honda and data was collected from the Bareilly city.
 This shows the company performance and the costomer satisfaction Towards the
company products. It also helps to know the customer demond and expected services
from the companies.

25
 RESEARCH METHODOLOGY

Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of
scientific investigation. Research Methodology is a scientific way to solve research problem. It
may be understood as a science of studying how research is don’t scientifically. In it we study
various steps that are generally adopted by researchers in studying their research problem. It is
necessary for researchers to know not only know research method techniques but also
technology.
The scope of Research Methodology is wider than that of research methods.
The research problem consists of series of closely related activities. At times, the first step
determines the native of the last step to be undertaken. Why a research has been defined, what
data has been collected and what a particular methods have been adopted and a host of similar
other questions are usually answered when we talk of research methodology concerning a
research problem or study. The project is a study where focus is on the following points:
METHODS OF DATA COLLECTION:
PRIMARY DATA:
Survey method -- This method was adopted because it helped in securing detail information from
a sample of respondents. The information received from the respondents is recorded on a form
called the questionnaire. This is only method to measure attitude & motivation directly
SECONDARY DATA:
I have also used the secondary data, which included the written document of the organization &
other places.
 INTERNET
 PAPERS & RECORDS
The data collected from the above mentioned sources helped me in getting information about the
brief history of organization.
RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures for acquiring the
Information needed. It is a plant or organizing framework for doing the study and collecting the

26
data. Designing a research plan requires decisions all the data sources, research approaches,
Research instruments, sampling plan and contact methods.
Research design is mainly of following types: -
1. Exploratory research.
2. Descriptive studies
3. Casual studies
EXPLORATORY RESEARCH
The major purposes of exploratory studies are the identification of problems, the more precise
Formulation of problems and the formulations of new alternative courses of action. The design
of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.
DESCRIPTIVE STUDIES
Descriptive research in contrast to exploratory research is marked by the prior formulation of
specific research Questions. The investigator already knows a substantial amount about the
research problem. Perhaps as a Result of an exploratory study, before the project is initiated.
Descriptive research is also characterized by a Preplanned and structured design.
CASUAL OR EXPERIMENTAL DESIGN
A casual design investigates the cause and effect relationships between two or more variables.
The hypothesis is tested and the experiment is done.
Area of study: The study is exclusively done in the area of marketing. It is a process requiring
care, sophistication, experience, business judgment, and imagination for which there can be no
mechanical substitutes.
Sampling Design: The random sampling is done because any probability sampling procedure
would require detailed information about the universe, which is not easily available further, it
being an exploratory research.
Sample Procedure: In this study “random sampling procedure is used. Random sampling is
preferred because of some limitation and the complexity. Area sampling is used in combination
with random sampling so as to collect the data from different regions of the city and to increase
reliability.
SAMPLE PLAN
Descriptive Research- The research design is descriptive in nature. This research is mainly
focused on two wheeler users.

27
Universe of the Study- Bareilly City U.P.
Sample Size Sample size is the number of elements to be included in a study. Keeping in mind
all the constraints 100 respondents have been selected.
Sampling Technique- Simple Random Sampling
Sampling Unit- Different Bikes owner.
Tools Of Presentation And Analysis- Pie Chart , Bar chart.

28
 DATA ANALYSIS AND INTERPRETATION

PROFILE OF SAMPLE

Gender

Respons
e
Male 97
Female 3

Response
Male Female
3%

97%

Interpretation: As per table and graph there are 97% respondents are Male and 3% are female.

29
Profile Age Wise

Respons
e

18-30 yr 72

30-50 yr 22

Above 50
yr 6

Response
18-30 yr 30-50 yr Above 50 yr

6%
22%

72%

Interpretation: As per table and graph there are 72% respondents are from the age group of 18-
30 yr, 22% respondents are from 30-50 yr and 6% respondents are above 50 yr.

30
Occupation of Respondents

Respons
e
Student 63
Private job 21
Businessm
en 16

Response

70

60

50
Response
40

30

20

10

0
Student Private job Businessmen

Interpretation: As per table and graph there are 63% respondents are Student, 21% respondents
have private job and 16% respondents are Businessmen.

31
Which company two wheelers bike do you have ?

Response
Hero 58
Honda 42

Response
Hero Honda

42%

58%

Interpretation: As per table and graph there are 58% respondents have hero bike and 42%
respondents have Honda bike .

32
Which models of two wheelers bike do you have ?

Respon
se
Hero- splendor
pro 47
Hero-Hf-dulex 16
Hero-passion pro 9
Honda- cd 100 4
Honda-dream
yoga 5
Honda shine 19

Response
50%
45%
40%
35%
30%
25%
20% Response
15%
10%
5%
0%
ro ex pr
o
10
0 ga ne
rp ul yo shi
do -f d io
n cd m a
len -H ss a- ea nd
sp ro -p
a nd dr Ho
He ro Ho a-
r o- He nd
He Ho

Interpretation: As per table and graph there are 47% respondents have Hero- Splendor pro,
16% respondents have Hero-Hf Delux, 9% respondents have Hero Passion pro, 4% respondents
says Honda Cd100, 5% respondents have Honda-dream yuga and 19% respondents have Honda
shine.

33
For how long do you own a bike?

Respons
e
0-2 year 42
2-5 year 25
5-7 year 18
above 7
year 15

Response

45%
40%
35%
30%
Response
25%
20%
15%
10%
5%
0%
0-2 year 2-5 year 5-7 year above 7 year

Interpretation: As per table and graph there are 42% respondents own bike from 0-2 yr, 25%
respondents says 2-5 yr, 18% respondents says 5-7yr and 15% respondents have bike above 7
year.

34
How do you came to know about these two wheelers bike ?

Response
Newspaper 19
Television 12
Internet 11
friends/
family 58

Response

60%

50%

40%
Response

30%

20%

10%

0%
Newspaper Television Internet friends/ family

Interpretation: As per table and graph there are 19% respondents know about two wheeler by
Newspaper, 12% respondents says Television, 11% respondents says internet and 58%
respondents says friends/family referral .

35
For what purpose do you use these two wheelers bike?

Respons
e
Pear Presure 17
Status symbol 46
Convenient 19
Official
Requirement 18

Response

50%
45%
40%
35%
30% Response

25%
20%
15%
10%
5%
0%
Pear Presure Status symbol Convenient Official Requirement

Interpretation: As per table and graph there are 17% respondents uses two wheeler for Pear
presure, 46% respondents says status symbol, 19% respondents says convenient and 18%
respondents says official requirement. .

36
What are the feature that attract you to buy this product?

Respons
e
Mileage 41
Affordable
Price 14
Less
maintenance 10
After sale
service 17
attractive look 5
All of above 13

Response
45%
40%
35%
30%
25%
20% Response
15%
10%
5%
0%
ag
e ice ce ice ok ve
ile
r an rv lo bo
leP te
n se e a
M b ale tiv lo
f
r da ain s r ec Al
m er att
ffo ss
A Le Aft

Interpretation: As per table and graph there are 41% respondents attracts by Mileage, 14%
respondents says Affordable Price , 10% respondents are in favor of Less maintenance, 17%
respondents says After sale services, 5% respondents says Attractive look and 13% respondents
says all of from above.

37
38
Which company bike would be your first choice if you are given chance to buy bike again ?

Response
Hero 63
Honda 37

Response
Hero Honda

37%

63%

Interpretation: As per table and graph there are 63% respondents voted Hero as first choice,
and 37% respondents says Honda .

39
Which company provides better service ?

Response
Hero 73
Honda 27

Response
Hero Honda
27%

73%

Interpretation: As per table and graph there are 73% respondents found Hero as a better service
provider and 27% respondents are in favor of Honda.

40
Which company offers attractive schemes and sales promotion activity?

Response
Hero 69
Honda 31

Response
Hero Honda
31%

69%

Interpretation: As per table and graph there are 69% respondents attract by Hero’s schemes and
sales promotion and 31% respondents are in favor of Honda.

41
Which company offers a wide variety of product with different model ?

Response
Hero 61
Honda 39

Response
Hero Honda

39%

61%

Interpretation: As per table and graph there are 61% respondents says Hero have wide variety
of bikes and 39% respondents are in favor of Honda.

42
What is your opinion with respect to hero company?

Response
Higly Satisfied
48
Satisfied
42
Dissatisfied
9
Highly dissatisfied
1

Response

50%
45%
40%
35%
30% Response

25%
20%
15%
10%
5%
0%
Higly Satisfied Satisfied Dissatisfied Highly dissatisfied

Interpretation: As per table and graph there are 48% respondents are Highly satisfied with Hero
company, 42% respondents are satisfied , 9% respondents are dissatisfied and 1% respondents
are Highly dissatisfied. Majority goes towards satisfied respondents.

43
What is opinion with respect to Honda company ?

Response
Highly satisfied
27
Satisfied
66
Dissatisfied
7
Highly
dissatisfied
0

Response

70%

60%

50%
Response
40%

30%

20%

10%

0%
Highly satisfied Satisfied Dissatisfied Highly dissatisfied

Interpretation: As per table and graph there are 27% respondents are Highly satisfied with
Honda company, 66% respondents are satisfied and 7% respondents are dissatisfied. Majority
goes towards satisfied respondents.

44
Which company provides batter mileage promise ?

response
Hero 77
Honda 23

response
Hero Honda
23%

77%

Interpretation: As per table and graph there are 77% respondents says Hero provide batter
mileage and 23% respondents are in favor of Honda.

45
 CHAPTER 10: FINDINGS, SUGGESIONS AND CONCLUSION

FINDINGS

1. Found That there are 58% respondents have hero bike and 42% respondents have Honda
bike .
2. Found That there are 47% respondents have Hero- Splendor pro, 16% respondents have
Hero-Hf Delux, 9% respondents have Hero Passion pro, 4% respondents says Honda
Cd100, 5% respondents have Honda-dream yuga and 19% respondents have Honda
shine.
3. Found That there are 42% respondents own bike from 0-2 yr, 25% respondents says 2-5
yr, 18% respondents says 5-7yr and 15% respondents have bike above 7 year.
4. Found That there are 19% respondents know about two wheeler by Newspaper, 12%
respondents says Television, 11% respondents says internet and 58% respondents says
friends/family referral.
5. Found That there are 17% respondents uses two wheeler for Pear presure, 46%
respondents says status symbol, 19% respondents says convenient and 18% respondents
says official requirement. .
6. Found That there are 41% respondents attracts by Mileage, 14% respondents says
Affordable Price , 10% respondents are in favor of Less maintenance, 17% respondents
says After sale services, 5% respondents says Attractive look and 13% respondents says
all of from above.
7. Found That there are 63% respondents voted Hero as first choice, and 37% respondents
says Honda .
8. Found That there are 73% respondents found Hero as a better service provider and 27%
respondents are in favor of Honda.
9. Found That there are 69% respondents attract by Hero’s schemes and sales promotion
and 31% respondents are in favor of Honda.
10. Found That there are 61% respondents says Hero have wide variety of bikes and 39%
respondents are in favor of Honda.

46
11. Found That there are 48% respondents are Highly satisfied with Hero company, 42%
respondents are satisfied , 9% respondents are dissatisfied and 1% respondents are Highly
dissatisfied. Majority goes towards satisfied respondents.
12. Found That there are 27% respondents are Highly satisfied with Honda company, 66%
respondents are satisfied and 7% respondents are dissatisfied. Majority goes towards
satisfied respondents.
13. Found That there are 77% respondents says Hero provide batter mileage and 23%
respondents are in favor of Honda.

47
 SUGGESTION

 The company should provide free service for at least five times for new bikes.
 The financing of Hero must be lower interest rate.
 The company must have a service station with in the city.
 Effort should be done for developing the concept of good relationship with consumers.

48
 CONCLUSION

This Study was done to indentify various problem and level of identify various problems and
level of satisfaction of consumer, so that efforts might done to satisfy them which would result in
building long term relationship between the customer and company. Due to delivery in customer
need and expectations, it become a different task to satisfy every customer, therefore to satisfy
each and every customer the important of building relationship with them existed. For this
purpose a number of questions were asked to find out behavior of customer. This research is also
done to know the views of the customer towards the services and quality provided to them by
Hero..

49
 BIBLIOGRAPHY

I have used the following source for finding the data-

a. Marketing management - Philip Kotler

b. Research methodology - C.R. Kothari

c. Consumer behavior - Schiffman & Kanuk

Literature from the web site

www.google.co.in

www.heromotocorp .com

www.hondamotors.com

www.wikipedia.com

50
 QUESTIONNAIRE

1. Name
2. Gender
a. Male
b. Female
3. Age
a. 18-30 ye
b. 30-50 ys
c. Above 50 yr
4. Occupation
a. Student
b. Private job
c. Businessmen
5. Which company two wheelers bike do you have ?
a. Hero
b. Honda
6. Which models of two wheelers bike do you have ?
a. Hero- splendor pro
b. Hero-Hf-dulex
c. Hero-passion pro
d. Honda- cd 100
e. Honda-dream yoga
f. Honda shine
7. For how long do you own a bike?
a. 0-2 year
b. 2-5 year
c. 5-7 year
d. above 7 year
8. How do you came to know about these two wheelers bike ?
a. Newspaper

51
 b. Television
c. Internet
d. friends/ family
9. For what purpose do you use these two wheelers bike?
a. Pear Presure
b. Status symbol
c. Convenient
d. Official Requirement
10. What are the feature that attract you to buy this product?
a. Mileage
b. Affordable Price
c. Less maintenance
d. After sale service
e. attractive look
f. All of above
11. Which company bike would be your first choice if you are given chance to buy bike
again ?
a. Hero
b. Honda
12. Which company provides better service ?
a. Hero
b. Honda
13. Which company offers attractive schemes and sales promotion activity?
a. Hero
b. Honda
14. Which company offers a wide variety of product with different model ?
a. Hero
b. Honda
15. What is your opinion with respect to hero company?
a. Highly satisfied
b. Satisfied

52
 c. Dissatisfied
d. Highly dissatisfied
16. What is opinion with respect to Honda company ?
a. Highly satisfied
b. Satisfied
c. Dissatisfied
d. Highly dissatisfied
17. Which company provides batter mileage promise ?
a. Hero
b. Honda
18. What is your opinion about the resale value of hero and honda with respect to
others company?
19. Any suggestions do you give for the further improvements in the service of company
?

53