Description
Advertising or advertizing is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.
HISTORY AND IMPORTANCE OF AUTOMOBILES
From drawn to dusk, day to day, in everyone’s life, activities carried out by man involve moving from one place to another. This may be either goods or man himself. All the wants and needs of men are not available at arm length and also it is not possible for any one to build a world for himself. To meet those needs and wants, transportation has become
necessary in everyone’s life.
An invention by earlier man is the result of today’s sophisticated, convenient and the state-of-the art. Technology in automobiles on the
Indian as well as foreign roads. With the population increasing rapidly, the automobile industry also gained momentum. Not to mention now
automobiles have been replaced as luxury item to one of the basic amenities in life.
It was about hundreds of years ago, when man used a pair of logs and a sheet of wood or other natural material placed on the logs for moving
1
things from one place to another. Further, developments took place in this direction and manually operated carts were seen as a tool for transportation and then the animal pulled carts and so on.
Many developments could be seen taking place at rapid place when Ford with his brilliant invention, brought a great revolution in the Transport and automobile industry. Ford for the first time was successful in inventing a power driven vehicle.
The growth momentum generated in the latter half of eighties is significant. With the growing needs and demand, various types of vehicles were produced in parallel to suit to the changing tastes incorporating the most conveniences and comfort in the models developed one after the other.
The automotive industry is regarded as the main indicator of the industrial health of a nation and is hence considered as the barometer of any economy’s health.
2
As it is known to ail, the technology up gradation is in phase of fast improvements and developments and with this personal transportation is picking up a prime consideration now a days.
If India is to accelerate industrial growth and achieve a major shift in its composition of exports in favour of value added products, industries like automobiles have to assume a major responsibility.
3
VARIOUS CATEGORIES IN AUTOMOBILES
No, one product can meet the needs, wants and desires of the complete market in universe. For every product, market segmentation will result in targeting the right customer and thus capture major market contributing to high scales.
Market segmentation is done on the basis of the consumer’s preferences, tastes, likes, usage, purchasing power, application, etc. Thus different customer group can be grouped on the above basis. The Indian automobile industry has, over the years, grown in scale with a diversified product range. This product range will cater to the needs of different
customers. The several of automobile manufactured in India are: 1. Passenger Cars 2. Jeeps and utility Vehicles. 3. Medium commercial Vehicles 4. Light Commercial Vehicles 5. Three Wheelers 6. Two wheelers
4
The above categories are being made on the basis of product design payload etc., In addition, numerous shapes, colours, sizes, prices, utility and applications form as intelligent choice to the consumer who can make a purchase in parallel to his/her tasters, preferences and liking.
This also helps the manufacturer to define his business acute. Since automobile industry is a crore sector, it is beyond the reach of Indian manufacturer to manufacture all category types of vehicles. Hence, he
decides to take up the business in his capacity and cater to the demand in particular segment.
This also helps the manufacturer to stabilize and concentrate on the business while being capable to complete in the competitive environment adopting the latest technology and other developments taking place in any part of the world.
TWO WHEELER AND ITS ROLE IN INDIAN CONTEXT As the cities grow and suburbs expand, transportation needs becoming more and more acute. With mounting pressure on the public transportation for which two wheelers are ideal.
5
The two-wheeler industry today has a significant role in the Indian economy. With an annual turnover of Rs.9000 crores and
compounded average growth of 10 percent in recent years, it is of the few industrial sectors in the growth phase today considers personal transportation as one of his basic needs.
TABLE
SHOWING
THE
DETAILS
OF
TWO
WHEELERS
PRODUCTION AND SALES
TABLE No. 1
Year 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003
Production 29,79,277 30,72,667 34,79,155 35,13,909 40,38,184
Change % 12.16 03.17 13.25 10.03 14.92
Sales 29,63,497 30,44,074 34,49,233 37,94,156 41,39,079
Change % 11.48 02.72 11.75 12.10 12.97
(SOURCE: SECONDARY DATA
)
SALES CHANGE
6
Graph No.1
12.97
11.48 1998-1999 1999-2000 2000-2001 2.72 2001-2002 2002-2003 11.75
12.1
PRODUCTION CHANGE
Graph No. 2
14.92
12.16 1998-1999 1999-2000 2000-2001 3.17 2001-2002 2002-2003 13.25
10.03
7
The two-wheeler industry basically comprises mopeds, scooters, scooterettes and motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups, offering economy. This category dominated by TVS SUZUKI, which has a market share of 50 percent today. The other major players in this segment include KINETIC ENGG., HERO MOTORS and BAJAJ AUTO.
Scooters, which found largest segment in the industry (37 percent) is dominated by BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and technology to the Indian customers. However, dominance of this category has been declining because of shift in the customer preferences.
Major part of the growth in the two-wheeler industry has come from Motorcycle especially the Indo-Japanese 100cc Motorcycles, which are considered fuel efficient, reliable and suited for rough roads.
Scooterettes also growing at a fast phase and are being increasingly perceived as a better opinion providing convenience and motor style, by
8
urban customers. In this category, TVS Scooty holds a dominant market share. With sales of over three million vehicles, India is the second largest two-wheeler market in the World. Vehicle has become a necessity for dayto-day busy life, with the accelerated industrial and business activity in a liberalized environment. However, given the limited purchasing power and to high cost of cars, majority of the middle class vehicle users prefers twowheelers. TWO – WHEELERS INDUSTRIES
Table No.2
Lakhs S.No. Brand Name Growth Rate Sales April – Oct. 2.87 1.97 1.44 1.10 Sales Oct – Apr. 4.04 2.13 1.84 1.22
1. 2. 3. 4.
Hero Honda Bajaj TVS Suzuki Escorts Yamaha
40.00% 08.12% 25.22% 10.74%
(Source: Secondary Data Over growth = 23.90
9
TWO – WHEELER INDUSTRY IN ASIA
With sales of over million vehicles, India is the second largest twowheelers market in the World. China is the market leader with around 51 percent of the Asia market; India, Thailand, Indonesia and Taiwan are the other key markets for two-wheelers with market shares of 19 percent, 10 percent, 9 percent, and 5 percent respectively.
The Chinese market is expected to grow rapidly and increase to 13.21 million units by the year 2003 and account for 50 percent of the two-wheeler market in Asia. India and Indonesia are the other markets exhibiting strong growth because of increase in the number of people in the middle-income bracket. But, the market for two-wheelers in more developed countries like Taiwan and Korea is expected to taper off and start showing trends of decline due to increasing affluence among the population and shift in consumer preference to passenger cars.
Vehicle has become a necessity for day-to-day busy life, with the accelerated industrial and business activity in a liberalized environment. However, given the limited purchasing power and high cost of cars, majority of the middle class vehicle users prefers two-wheelers.
10
CHANGING THE PROFILE OF TWO WHEELERS INDUSTRY Graph No. 3 2002 - 2003
60 50 40 30 20 10 0 Scooters Mopede Motorcycle 30 30
50
1994-95
50 40 30 20 10 0 Scooters Mopede Motorcycle 25
40 34
This rears an appreciable shift in demand from scooters to motorcycles. Four years ago scooters have 45% now it comes to 30% because 1. Economy 2. Fuel Efficient 3. Affordability
11
EXPORT OF TWO-WHEELER INDUSTRY
The industry is targeting 20 percent exports, the government needs to facilitate indigenous research and upgrading for design capability along with providing trade incentives for exports. Now SAARC countries like
Bangladesh, Sri Lanka etc., since the size of market in these economies is very small, the industry needs to identify new markets if it is to achieve its vision of 20 percent exports.
Primary reasons for the low levels of exports are: first, the Indian players have not felt the need to look outside India as the domestic market has been growing rapidly. Even in 1997-98 when the rest of the auto sector slowed down, this segment grew at three percent. Secondly, there exist significant gap in technical capabilities between Indian manufacturers and their global competitors.
On the other hand, freer trade under WTO can open lot of export opportunities for the Indian two-wheeler players. But to fully exploit these exports potential Indian players need to improve the product design and quality standards to the international level.
12
NEED FOR THE STUDY
Every business enterprises required vital information to keep alive it’s day to day business activities. The nature of information required, differs from situation to situation. Supporting organization is evaluating its
marketing effort. Then marketer has to appraise the marketing effort and then has to find means of improving it, and then information required is of consumer research. After the evolution of marketing concept, marketing effort of organizations is channelised towards target market. So,
understanding of tastes and preferences of target market assumed greater importance. So, every organization carries out consumer research to
ascertain the data, regarding target market.
The survey consumer behavior is helpful to the company to know how fare the consumer are satisfied with the product and what makes them to but and to know what consumers need more form the product the collected data is helpful to know changing tastes, preferences, trends in buying behavior of the customer and to make product improvements.
13
With the stiff competition coming up at a rapid pace and also due to changing nature of the market, a need was felt by M/S PHOENIX Motors, Hyderabad, to take up a study of the type and hence intended to conduct a study on consumer behavior towards Hero Honda Splendor. Thus the need for the study paved way in performing project work of this kind.
14
COMPANY PROFILE
Hero group in collaboration with Japanese company HONDA MOTORS established HERO HONDA MOTORS LTD., in 1984. registered office and works of the company situated at Ghaziabad. The Hero
Honda is the first company to introduce 4-stroke motorcycle on India roads. It tested success because of it unique qualities like fuel efficient, reliable and situated for rough roads. Over 35 million units were sold worldwide and it gave the company significant advantage over the other motorcycle available in the country. The other major players in the motorcycle’s segment include TVS Suzuki, Bajaj Auto and Escorts Yamaha. In 1996-97 Bajaj introduced 4-stroke bike against Hero Honda Splendor, but Hero Honda Splendor motors ltd., hardly face any problem of competition for Bajaj because of its superior specifications. The company has nine 100-CC models styled but all united by Eco-friendliness of the engine. The models being ? Hero Honda CD 100 ? Hero Honda CD 100SS ? Hero Honda Ambition ? Hero Honda Splendor ? Hero Honda Street ? Hero Honda Sleek
15
? Hero Honda Splendor plus ? Hero Honda Passion ? Hero Honda Passion plus Despite a great decline in the sales in the automobile industry Hero Honda Splendor has recorded a phenomenal 59% growth in the net profits during the year 98-99 touching 121.13 crore as against 76.60 crore for the previous year with market capability 4713 crorers.
While growth in automobiles sector was a mere 1 percent and in the two-wheeler industry 3 percent, the motorcycle segment registered a growth of 16 percent. Against this background Hero Honda Splendor registered an incredible growth of 59 percent for the year 1998-99. A total of 4,07,546 motorcycles were sold during the year. As a market leader Hero Honda Splendor enjoys a market share of 36 percent in the country.
Honda’s export performance has been limited by the fact that exports could only be made to select markets and that too only through Honda outlets. Nevertheless, over five thousand motorcycles were exported in 1993-94. To meet the demand in the market the company has set up a new
16
plant at Gorgon near New Delhi, at the cost of Rs.181 crore with annual capacity of 1.5 lakh units. The strength of the company lies in its distribution, which has been expanding its network feverously. Today over 500 dealers scattered in the market. The main reasons for the commendable performance of Hero
Honda Splendor have been its uncompromising obsession for quality, excellent and commitment to the customer. Both the sales and after sale services are given greatest priority by the company.
ABOUT HERO HONDA SPLENDOR MOTORS
1.MANAGEMENT CEO and Director - Pavan Kanth Munjal Chairman - Brij Mohan lal Shyan Guptha.
General Manager 2. MANUFACTURING
Hero Honda splendor has created by manufacturing and selling 42 lakhs motorcycles within a span of 19 years since inception. By setting standards and benchmark in technology, after-sales service and
environment-friendly approach, Hero Honda Splendor has a vast network of around 500 dealerships and 100 service centers all over the country. That
17
way, Hero Honda Splendor definitely enjoys an edge over all other twowheelers manufacturers because it adopted the 4-stroke technology. 19 years ago whereas the others had it only recently. Hero Honda Splendor Motors is being rated as the best Honda plant outside Japan. The Indian plant is now accelerating to meet Honda’s Japan standards.
Modern motorcycles came to India in the mid-1980 in the form of hyphenated brands. Hero Honda Splendor, Ind-Suzuki, Kawasaki-Bajaj and so on. There are 45 Honda factories worldwide outside Japan manufacturing two wheelers and our plant is the best Honda plant outside Japan. Says Shyam Gupta, General manager, in charge of Gurgaon and Dharuhera factories.
At present, Hero Honda Splendor produces 2,650 motorcycles a day in its Gurgaon and Dharuherea plants in Haryana. Since production has picked up only recently due to demand growth it might end the year with 10 lakh and plan to reach a million in 2004. There are five parameters to judge a plant, says Gupta: quality, cost, delivery, margin and safety.
18
3. EXPORT: If export restrictions are removed it is major export item for our country. Export: April – October April – October April – October April – October 4. ADDRESS: Office and work of the 10 Head office : : Ghaziabad (UP) 99-00 2000-01 2001-02 2002-03 = = = = 5081 units 8224 units 10252 units 12395 units
No.34, Basanth Lock, Vasanthi Vihar, New Delhi.
Factories Dealers Address
: :
Gurgoan, Dharuher-Haryana PHOENIX MOTORS PVT.LTD. HUBSIGUDA HYDERABAD.
19
4. ECONOMIC PERFORMANCE: Table No.3 Year 2003 2003 2003 2003 2003 2003 Particulars Sales Profits Assets Market Capitals Return to Share Holders Operating Profit Margin Rs. (Crores) 1875 146.7 2420 5702 1429 266 Rank 47 42 132 23 75 52
(Source: Secondary Data Hero Honda Motors Limited in also planning to launch some new – variants in the new year it may opt to float variants in the 125-150 cc. Segments on the CBZ Models launched recently. Hero Honda Splendor Motors will achieve a turnover of Rs.3000 crores in the year 2003. With all these achievement to its credit, Hero Honda Splendor is poised to enter the new millennium as a clear leader in the motorcycle segment. Hero Honda Splendor has plans to invest Rs.300 crores by 2004 with objective to introduce two new motorcycle models and expand the total production, capacity to 10 lakhs units per annum. AWARDS Over years, the company has received its share of accolades, including ? The national productivity council award (1990-91)
20
? The economic times – Harvard Business School Association of India award.
ABOUT M/s. PHOENIX MOTORS PVT. LTD.
M/s. PHOENIX Motors Ltd., came into existence in the year 1986. It is the authorized Hero Honda Splendor dealer in Hyderabad. It is located in the heart of the town, which is having a spacious servicing station and a large godown. Phoenix Motors Ltd., has been rendering effective services to the customers and maintaining a high sales record. In the financial year 2002-2003 it has reached a sales figure of above 1300 motorcycles which relatively very high when compared the competitors in Hyderabad and it also one of the famous dealer network for the Hero Honda Splendor. It supplies through out the Hyderabad.
ABOUT THE PRODUCT HERO HONDA SPLENDOR
21
Hero Honda Splendor is a Indo-Japanese Motorcycle which has innovative specifications like fuel efficiency superior technology and 4stroke engine etc. This was the stroke model which was introduced by the company on the Indian road. This model attracted the consumers through its innovative eco-friendliness feature. Splendor occupied the supreme position in the Indian market because of its best performance. It has comfortable seating and smart appearance, which supports point-to-point riding, has the following specifications.
INTRODUCTION TO CONSUMER BEHAVIOUR
22
Consumer behavior is concerned with the activities and actions of people and organizations that purchase the goods and services, including the influences on these activities and actions.
The act of individual is obtaining and using goods and services, including the decision process that precede and determine these acts, comprise consumer behavior. This definition includes both ultimate To understand the
consumer and the purchaser of industrial goods.
consumer behavior we must examine the events that precede and follows the purchase act.
Information on buying behavior is generally used to predict or diagnose buyer’s actions in markets. Predictions involve anticipating what buyers will do at some future time. Because managers are responsible for the outcome of their decisions, they out to be sure that buyer behavior information is relevant to the decision situation. No one else understands the risks and uncertainties as well as they do. However, whether for prediction or diagnosis, is not easy. To begin with, the managers must know the ways in which buyer behavior information can help them.
MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR
23
Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural, social, personal, and psychological factors. These factors are not possible to control by the marketers but must be taken into account. We want to examine the influence of each factor on a buyer’s behavior. CULTURAL FACTORS Cultural factors exert the broadest and deepest influence on consumer behavior we will look at the role player the buyer culture, sub-culture, and social class. CULTURE: Culture is the most fundamental determinant of a person’s want and behavior whereas lower creatures are largely governed by instinct, human behavior is largely learned. The child growing up in a society learns a basic set of values, perceptions, and behavior through a process of socialization involving the family and other key institution.
SUB CULTURE:
24
Each culture contains smaller groups of subculture that provide more specific identification and socialization for its members. Four types of
subcultures can be distinguished. Nationally groups are found with in large communities and exhibit distinct ethnic tastes and proclivities. Religious groups with specific Cultural preference and tabs. geographical areas also effect the consumer behaviors. Racial groups and
SOCIAL CLASS:
Virtually
all-human
societies
exhibit
social
stratification.
Stratification sometimes takes from a cast e system where the members of different castes are reared for certain roles and can not change their membership. More stratification takes the form of social classes. Social classes are relatively homogenous and enduring division in a society, which are hierarchically ordered and whose members share similar values, inters and behavior. Social classes show distinct product and brand preferences in such areas as clothing, home furnishings, leisure activities, and automobiles.
SOCIAL FACTORS:
25
A consumer’s behavior is also influenced by social factors such as the consumer reference groups, family and social role and statuses.
REFERENCE GROUPS: A person’s behavior is strongly influenced by many groups. Person’s reference groups are those groups that have a direct or indirect influence on the person’s attitude or behavior. Groups having a direct influence on a person are membership group. These are groups to which the person
belongs and interacts, some are primary groups with there is fairly continuous interaction, such as family, friends, neighbors and co-owners. The persons also belong to secondary groups, which tend to be more formal and where there is less continuous interaction.
FAMILY: Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. The family of orientation consists of one’s parents. From parents a person acquires an orientation toward religion, politics and economics and a sense of personal ambition, self-worth and love.
26
A more direct influence on every day buying behavior is ones family of procreator; namely, one’s spouse and children. The family is the most important consumer buying organization in society and it has been researched extensively.
ROLES AND STATUSES: A person participates in many groups throughout life family club, organizations. The position in each group can be defined in terms of role and status.
PERSONAL FACTORS: A buyer’s are also influenced by his or her personal characteristics, notably the buyer’s age and life cycle stage, occupation, economic circumstances, lifestyle and personality and self-concept.
AGE AND LIFE CYCLE STAGE: People change the goods and services they buy over their lifetime. Consumption is also shaped by the stage of the family life cycle.
27
OCCUPATION: A person’s consumption pattern is influenced by his or her occupation. Marketers try to identify the occupational groups that have an above average interest it their products and services.
ECONOMIC CIRCUMSTANCES: Person’s economic circumstances will greatly effect product choice people economic circumstances consist of their spendable income, savings and assets, borrowing power and attitude toward spending versus saving.
PSYCHOLOGICAL FACTORS: A buyers buying choices are also influence by major psychological factors. The following are the individual influence on consumer behavior. Needs, Motives, perceptions, Attitudes and Learning.
a. NEED: The starting point in the purchase decision is the recognition of a need. needs. The consumer is typically confronted with numerous unsatisfied
28
Maslow’s five level hierarchies of needs is well known, is relevant in this context. As each need is fulfilled, another higher level need arises and demands priority in its satisfaction. Marketers are interested in psychological needs as they are closely connected to what he product does. Food satisfies hunger, medicines heal a sick person. Safety needs are insurance and real estate and so on. For many people refrigerators, cars and air conditioners are status symbols and satisfy the needs of self-esteem, prestige and status.
b. MOTIVES: A motive is an inner state that directs us towards the goal of satisfying a felt need. Important buying motives are pride, vanity, fashion, possession, fear safety, love and affection, economy, curiosity, social approval, beauty and comfort or convenience. These are the driving forces behind buying behavior and may be based on physiological or psychological wants.
29
c. PERCEPTION: Individual behavior resulting from motivation is affected by how we perceive stimuli. Perception is the meaning we attribute to incoming stimuli through out five senses.
Our perception of an object of event is the result of the interception of two of factors a) Stimuli factors such as size, colour, weight or shape b) Individual factors which are characteristics of individual.
d. ATTITUDE: Attitude may be defined as a person’s enduring favorable or unfavorable evaluation, emotional feeling, and proper contraction tendency towards some object of idea. Attitudes are formed over a period of time through individual experience and group’s contacts and are highly resistant to change. e. LEARNING: Since marketing is a concerned with the process by which consumer decision change. Over time as with describing those decisions at one point of time, the study of how learning takes place is important. Learning may be defined as changes as a result of experience.
30
CONSUMER BUYING PROCESS
Marketers must be extremely in analyzing, consumer behaving. Consumers often turn down that appears to be a winning offer if they do not endorse the product losses. Marketers must identify, who make the buying decision and the type of buying decision involved i.e., steps in buying process. i. PROBLEM PERCEPTION: The process of buying normally starts with the customer’s perception of a problem, in the form of a need, desire or requirement. These will persuade the customer to turn to his environment, seeking information and methods to solve his problem. ii. AWARENESS: The World of information around the consumer makes him award of the product existence the product that would solve his problem and meet his need. iii. COMPREHENSION: Consumer in now not only aware of the product’s existence, he has gained knowledge about the product. Comprehension comes out of his ability to reason with information. The awareness and comprehension
31
represent the information process stages. These two stages constitute the cognitive field of the purchase process. iv. ATTITUDE: It is the sum total of the individual faith and feelings toward a product. As a result of his awareness and comprehension on the consumer develops and attitude – favorable towards the product. v. LEGITIMIZATION: The buyer must be convinced the purchase of the product is the legitimate course of action. This stage often stands as a barrier between a favorable attitude towards the products and actual purchase. At this state he may seek further information regarding the product, or attempt and assessment of the information already available to him. vi. TRAIL: Conviction leads the consumer to try the product on a small scale. He tries to evaluate product from his own experience. vii. ADAPTATION: A successful trail leads him to buy / adopt the product. Trail and adoption stage constitutes the behavioral field in the buying process.
32
viii. THE POST – PURCHASE DISSONANCE: The decision to buy or the actual purchase activity may create some restlessness in the fluid of the individual. He is not sure about the product. He may feel that the ‘other brand’ would have been better. He may even feel that the salesman has taken him for a ride. As this stage of dissonance is an uncomfortable one, the individual himself will seek means to recover his conviction and poise. BUYING HABITS: Marketers should also know the buying habits of customers, how, when and where they buy. Buying factors can be best studied in relation to the types of products purchases. In fact, classifications of consumer goods have been made on the basis of buying habits. One such classification divides them into convenience goods, shopping goods and specially goods. CONVENIENCE GOODS: There are certain products, which the consumers would like to purchase with the least possible efforts. Such items care purchases
frequently and their unit price is low. There is no much of planning behind the purchase products like toothpaste soap, cigarettes etc., come under this category. There is a recurring need of these items and the consumer would desire to get it an easily accessible place.
33
OBJECTIVE OF THE STUDY:
1. The main objective of the study is to know the factors accomplishing for selection of Hero Honda Splendor. 2. To know the consumer satisfaction towards service provided by M/s. Phoenix Motors. 3. To record a note on media preference of consumers towards Splendor. 4. To know about the satisfaction level of pricing Splendor.
34
SCOPE OF THE STUDY
This study on consumer behavior towards Hero Honda splendor will give an idea for the dealers to position their market strategies, in future.
The study will reveal the customers level of satisfaction, media preferences, help in implementing more promotional activities.
35
LIMITATIONS
Sample selected for this study is 300.
The sample size is
proportionately very less compare to the district population.
For the time limits & monetary factor I covered the places wherever convenient to me. So cannot, able to predict on the basis of assumption for other location in Hyderabad.
The respondent who answer the questions, there may be some bias due to ignorance. They didn’t know about importance of the study, so whatever response from the mouth of respondents we talk into consideration. For some questions they are unable to say the Answer correctly. At this juncture we have to explain more precisely to understand the question even they may know the answer but they may not be in position to express their response related to this product.
36
METHODOLOGY ADOPTED FOR THE STUDY
Data collection for the purpose of analyzing behavior of consumer is really a horrendous task. Data for the study are collected both from primary sources and secondary sources.
The primary source of the data was obtained through a market survey conducted at Hyderabad. Having a clear understanding about the objectives of this study, a set of questions were prepared and developed, to be asked to the respondent. question like I. II. Open -ended questions Closed-ended questions The questionnaire consisted of the different types of
In the closed – ended type of questions, dichotomous, multiple-choice questions have been included. The sampling methods used were
convenience sampling. The sample size taken for the study was 300 respondents covering all the places at Hyderabad.
Secondary source of the data has been an aid to perform the survey successfully. The various information bulletins, company journals and other
37
printed materials gave an in-depth knowledge on the automobiles and further this information enlightened in developing a research plan and collection of data needed for the research in the dare of interest. Sample Size : The sample size taken for the study was 300 respondents
Area of the Study : Study area cover all the places of Hyderabad.
Sample units : Hero Honda customers
Sample Procedure : Convenience sampling techniques was adopted in conducting sample survey with Hero Honda customers.
Statistical Tools : Chi – square test Simple percentage method
38
SECONDARY DATA Any data, which were gathered earlier for some other purpose, are the secondary data in the hands of the marketing researcher. Thus primary data collected by one person may become secondary data with another. For either demographic statistics collected every ten years are the primary data with the Registrar General of India, but the some statistics used by anyone else could be secondary data with the individual. Advantages in the case of secondary data are that it is for more economical, a good seal of effort in collecting the data is saved, and saves lot of time, another hand the disadvantages are, it seldom fits perfectly into the frame work of the marketing research, the data may be some work out data. Secondary data can be divided into two category (1) Internal Secondary data and (2) External Secondary data. Internal data is procured or competed by a researcher in its normal operations within its premises. This data may include credit records, order, slopments, sales results etc., External data is generated and collected from myriad’s of events and sources outside the firm’s premises. Large number of sources available from which such data can be extracted. External data sources can be divided into three categories. They are governmental sources, commercial sources,
Miscellaneous sources.
39
ANALYTICAL TOOLS
CHI-SQUARE TEST Chi-square test is anon-parametric test used more frequently by marketing research to test hypothesis. This test is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed. The formula for calculating the value of Chi-square is. ? 2 = ?(O-E) 2 E O = Observed Value E = Expected Value Degree of Freedom = (row-1)(Column-1) SIMPLE PERCENTAGE METHOD Percentages are used in making comprehensions between two or more series of data, percentages are used to compare the relative terms, the distribution of two or more series of data.
40
SAMPLING: 300 Questionnaires has been prepared for data collection regarding the Hero Honda Splendor. It was general survey. Simple random sampling has been used for collecting the data.
41
DATA ANALYSIS AND INTERPRETATION
CHI-SQUARE TEST-I To find out the relationship between occupation (Vs) overall performance of Hero Honda Splendor. OVERALL PERFORMANCE TABLE NO:4 Occupation Student Highly satisfied 32 (30.09) Employee 34 (28.46) Business 34 (44.73) Profession / others 22 (18.70) Total 122 Satisfied 30 (33.55) 26 (31.73) 66 (49.86) 14 (20.85) 136 Not satisfied 12 (10.36) 10 (9.8) 10 (15.4) 10 (6.44) 42 300 46 110 70 Total 74
NULL HYPOTHESIS: (Ho) there is no significant relationship between Occupation (Vs) performance of Hero Honda Splendor. Alternative Hypothesis (H1): There is significanct relationship between occupation (Vs) performance of Hero Honda Splendor.
42
CALCULATIONS Observed frequency 32 34 34 22 30 26 66 14 12 10 10 10 Expected frequency 30..9 26.46 44.73 18.70 33.55 33.75 19.80 20.85 10.36 9.8 15.4 6.44 (O-E)2 3.65 30.69 115.13 10.89 12.60 32.83 260.49 46.92 2.69 0.04 29.16 12.67 Total Degree of freedom = Calculated value Tabulated value = = 6 21.419 12.419 (0-E)2 E 0.12 1.07 2.57 0.58 0.375 1.034 5.22 2.25 0.26 4.08 1.89 1.97 21.419
Calculated Value > Tabulated Value Hence we reject Null Hypothesis. Inference: Since Calculated value > Tabulated value, So there is relationship between the occupation (s) overall performance of Hero Honda.
43
CHI-SQUARE TEST – 2 To find out the relationship between the occupation (Vs) features of Hero Honda. Features / Occupation Brand Name Student others 34 (39.68) Appearance 18 (16.64) Technology 10 (13.44) Resale value 22 (15.36) Price 12 (10.88) Total 96 Employees / profession 38 (38.85) 18 (16.30) 12 (13.16) 12 (10.65) 12 (10.65) 94 Business 52 (45.46) 16 (19.06) 20 (15.4) 18 (12.46) 18 (12.46) 110 300 34 34 42 52 Total 124
NULL HYPOTHESIS : (Ho) there is no significant relationship between the Occupation and features of Hero Honda Splendor. ALTERNATIVE HYPOTHESIS (H1) : There is significance relationship between the occupation and features of Hero Honda Splendor. D.F. Tabulated Value = = 8 10.35 15.05 Calculated Value =
44
INFERENCE : Since calculated value is greater than the calculated value hence we accept the null Hypothesis. The following table shows the occupation of the consumers: Table No:5 S.No. 1. 2. 3. 4. 5. Occupation Student Employee Business Professional Others Total (Source : Primary Data) INTERPRETATION: • 18.66 % of Students purchased Hero Honda Splendor • 23.33 % of Employees purchased Hero Honda Splendor • 33.33 % of Business purchased Hero Honda Splendor • 20.66 % of Professional purchased Hero Honda Splendor INFERENCE: The above table shows that more consumers of Hero Honda Splendor are Business people and employees. Total 56 70 100 62 12 300 Percentage 18.66 23.33 33.33 20.66 4.0 100 %
45
The picture shows different occupations owing Hero Honda Splendor Graph No. 4
4 20.66
18.66 Student Employee Business Professional Others
23.33 33.33
46
Table showing media preference for advertising Hero Honda Splendor. Table No. 6 Sl.No. 1. 2. 3. 4. Media Television News paper Show Room Display Road Display Total (Source :- Primary Data) INTERPRETATION :• From the above table we can see that, majority (41.33% of the respondents are influenced by the Television for buying the Hero Honda Splendor. • 32.33% of the respondents are influenced through the advertisement given in the news papers. • 12.0% of the respondents are influenced by the show room display for buying the Hero Honda splendor INFERENCE: nearly 41% of the respondents before to see advertisement through media Television and about 32% of them preferred Media News paper. No. of Respondent 124 98 36 42 300 Percentage 41.33 32.33 12.0 14 100 %
47
Picture shows media preference for advertising Hero Honda Splendor. Graph No. 5
45 40 35 30 25 20 15 10 5 0
41.33
32.33
12
14
Television
News Paper
Showroom Display
Road Display
48
2. The following tables shows the sales services of M/s. Phoenix motors Table No. 7 Sl.No. 1. 2. 3. 4. Aspect Highly satisfied Satisfied Partly satisfied Not satisfied Total (Source : Primary data) INTERPRETATION : • From the above table we see that Majority 41.0% of the respondents are satisfied with the services of M/s. Phoenix Motors. • 37.33% of the respondents are fully satisfied with the services provided by the M/s. Phoenix Motors. • 12.66% of the respondents are partly satisfied with the services provided by the M/s. Phoenix Motors. • 9% are not at all satisfied with the services provided by the M/s. Phoenix Motors. INFERENCE: From the above table it is inferred that nearly 90% of the consumers are satisfied and about 5% are Un satisfied with the sale service provided by M/s. PHOENIX Motors.
49
Total 112 123 38 27 300
Percentage 37.33 41.0 12.66 9.00 100
%
Picture shows consumer satisfaction with service provided by M/s. PHOENIX MOTORS PVT. LTD. Graph No. 6
45 41 40 35 30 25 20 15 10 5 0 Highly Satisfied Partly Not Satisfied 37.33
12.66 9
50
3. The following table shows the Consumers preferences to buy Hero Honda Splendor Table No. 8 S.No. 1. 2. 3. 4. 5. 6. 7. 8. Aspect Brand Name Appearance Mileage Price Durability Technology Safety Resale value Total (Source : Primary data) INTERPRETATION : • From the above table we see that Majority 22.66% of customers prefer to buy Hero Honda because of its Brand name. • 18.66% of customers prefer to buy Hero Honda because of its appearance. • 19.66% of customers prefer to buy Hero Honda because of its Mileage’s. Total 68 56 59 17 9 30 22 39 300 % 22.66 18.66 19.66 5.66 3.0 10.0 7.33 13.0 100
51
• 5.66% of customers prefer to buy Hero Honda because of its Price.
INFERENCE: From the above table it is observed that the top priority was given to brand name, mileage, appearance and technology. About 13% of the consumers go for resale value.
52
Picture shows the Consumers preference to buy Hero Honda Splendor Graph No. 7
13 7.33
22.66
10 3 5.66 18.66 19.66
53
3. The following table shows how the consumers come across of Hero Honda Splendor Table No. 9 S.No. 1. 2. 3. 4. Friends Relatives Advertisement Dealer Total (Source : Primary data) INTERPRETATION • From the above table we see that Majority 52.66% of the respondents are influenced by advertisement of the Hero Honda Splendor. • 41% of the respondents are influenced by the Friends for purchasing the Hero Honda Splendor • 4.33% of the respondents are influenced by the Dealers for purchasing the Hero Honda Splendor. • 12% of the respondents are influenced by the Relatives for purchasing the Hero Honda Splendor. INFERENCE: From the above table it is clear that most of the consumers come across the Bike through the Media advertisement and Friends. Aspect Total 123 6 158 13 300 41 2 52.6 4.33 100 %
54
Picture shows how the consumers come across of Hero Honda Splendor Graph No. 8
60 52.6
50 41 40
30
20
10 2 0
R el at iv es en t t is m D ea le r en ds
4.33
Fr i
A dv er
55
4. The following table shows the satisfaction level of pricing Hero Honda Splendor. Table No. 10. S.No. 1. 2. 3. Aspect Highly satisfied Satisfied Not satisfied Total (Source : Primary data) INTERPRETATION : • From the above table we see that majority 49.33% of the respondents are satisfied with the price of Hero Honda Splendor. • 42% of the respondents are highly satisfied with the price of Hero Honda Splendor. • 8.66% of the respondents are not satisfied with the price of Hero Honda Splendor. INFERENCE: From the above table it is observed that most of the Total 126 148 26 300 % 42 49.33 8.66 100
consumers are satisfied with the price of Hero Honda Splendor and about 8% of consumers are not satisfied.
56
Picture shows the satisfaction level of pricing Hero Honda Splendor. Graph No. 9
8.66 42 49.33
Highly satisfied Satisfied Not satisfied
57
The following table shows the details of customers usage of vehicle before purchasing Hero Honda splendor. Table No:11 S.No 1. 2. 3. 4. 5. 6. 7. Aspects Scooter Yamaha TVs Suzuki Hero Honda CD 100 Hero Honda Ambition Mopeds First Vehicle No of Respondents 29 17 12 33 41 57 111 300 Percentage 9.6 5.6 4.0 11.0 13.6 19.1 37.0 100
(Source: Primary Data) INTERPRETATION: • From the above table 9.6 % of respondents using scooter before using hero honda splendor. • 5.6 % of respondents used yamaha before using hero honda splendor. • 4.0 % of respondents used Tvs suzuki before using hero honda splendor. • 11.0 % of respondents used hero honda cd 100 before using hero honda splendor. • 13.6 % of respondents used hero honda ambition before using hero honda splendor. • 37 % of respondents have purchased splendor as their first vehicle INFERENCE:
58
From the above table it is clear most of the consumers mopeds, hero honda ambition, before using hero honda splendor. Picture Shows costumer used the vehicle before purchasing HERO HONDA SPLENDOR Graph No:10
10% 36%
6%
4% 11%
19%
14%
Scooter TVs Suzuki Hero Honda Ambition First Vehicle
Yamaha Hero Honda CD 100 Mopeds
59
Table shows the period, which Respondents are, using the Hero Honda Splendor. Table No:12 S.No 1. 2. 3. 4. 5. Aspects 2 Months 4 months 6 Months 8 months Above 1 Year Total No of Respondents 38 27 67 75 93 300 Percentage 12.66 9 22.33 25 31 100
(Source Primary Data) INTERPRETATION: • From the above table 12.6% of respondents are using Hero Honda splendor since 2 Months. • 9% of respondents are using Hero Honda splendor since 4 Months. • 22.3%, of respondents are using Hero Honda splendor since 6 Months. • 25.0%, of respondents are using Hero Honda splendor since 8 Months. • 31.0 %, of respondents are using Hero Honda splendor since above one year. INFERENCE: From the above table it is observed most of the consumers are using Hero Honda splendor above 1 year.
60
Picture Shows the Period which respondents are using Hero Honda splendor Graph No.11
35 31 30 25 20 15 10 5 0 2 Months 4 months 6 Months 8 months Aspects percenatge Above 1 Year 12.66 9 25 22.33
61
The following table shows the mode of purchased done by the respondents Table No:13 S.No 1. 2. 3. Aspects Installment Financial Assistance Net Payment Total No of respondents 147 107 46 300 Percentage 49 35.66 15.33 100
(Source Primary Data) INTERPRETATION: • From the above table 49% of the respondents purchase through installments. • 35.66% of the respondents purchased through financial assistance. • 15.33% of the respondents purchased by net cash. INFERENCE: From the above table most of the consumers 49% is purchased installments.
62
Picture Shows the mode of purchased done by the respondents Graph No:12
60 50 40 30 20 10 0 Installment Financial Assistance Aspects Net Payment 49
Percentage
35.66
15.33
63
Table shows Respondents Having problem with the availability of Spare Parts Table No:14 S.No 1. 2. Aspects Yes No Total (Source Primary Data) INTERPRETATION: • 13.33% of respondents for the having problem with the availability of Spare Parts • 86.66% of respondents not having problem with the availability of spare Parts INFERENCE: From the above table most of the consumers 86.66% satisfied with the problem with availability of spare parts. No of Respondents 40 260 300 Percentage 13.33 86.66 100
64
Picture Shows respondents having problem with the availability of spare parts Graph No:13
Availability of spareparts
13%
87%
Yes
No
65
The Table shows the Respondents visiting the Service centers. Table No:15
S.No 1. 2.
Aspects yes No Total
No of Respondents 29 271 300
Percentage 9.66 90.33 100
(Source Primary Data) INTERPRETATION: • 90.33% of respondents says that they don’t visit other service center. • 9.66% of respondents says that they visit other service center. INFERENCE: From the above table 9.66% consumers visit other service center.
66
Picture Shows do you visit any other service center Graph No.14
10%
90%
yes
No
67
Table showing disadvantages found by the Respondents in Hero-Honda. Table No:16 S.No 1. 2. 3. Aspects Poor Lighting High Cost Maintenance cost Total (Source Primary Data) INTERPRETATION: • 38.0% of respondents says that Poor lighting is disadvantage. • 40.66 % says that high cost is disadvantage of Hero Honda splendor. • 29.70% says that maintenance cost is disadvantage of Hero Honda splendor. INFERENCE: From the above table it is clear most of the 38.0 % consumers says that disadvantage Hero Honda splendor. No. of Respondents 114 97 89 300 Percentage 38.0 32.30 29.70 100
68
Picture shows disadvantage found by the respondents in Hero Honda splendor Graph No.15
30%
38%
32%
Poor Lighting
High Cost
Maintenance cost
69
FINDINGS
? 22.66% OF customers prefer to buy Hero Honda because of its brand name 18.66% of customers prefer to buy appearance, 19.66%, of customers prefer to buy Hero Honda because of its mileage. 5.66%, of customers prefer to buy Hero Honda because of its price. 3.0%, of customers prefer to buy Hero Honda because of its durability. ? 52.66% of the respondents are influenced by advertisement of Hero Honda splendor. 41% of the respondents are influenced by the friends for purchasing the Hero Honda Splendor. 4.33 % of the respondents are influenced by the dealers for purchasing the Hero Honda splendor. ? 49% of the respondents purchased through installments 35.66%, of the respondents purchased through financial assistance 15.33% of the respondents purchased by net cash. ? 41% of the respondents are satisfied with the service of M/S Phoenix Motors. 37.33%, of the respondents are fully satisfied with the service provided by the M/S Phoenix Motors. 12.66%, of the respondents are partly satisfied with the services provided by the M/S Phoenix Motors. 9%, of the respondents are not at all satisfied with the services provided by the M/S Phoenix Motors.
70
? 90.33% of the respondents says that they don’t visit other service center. Because they are satisfied by the servicing provided by M/S Phoenix Motors. ? 12.6% of Respondents are using Hero Honda splendor since 2 months. 9% of respondents are using Hero Honda splendor since 4 Months. 22.3%, of respondents are using Hero Honda splendor since 6 Months. 25.0%, of respondents are using Hero Honda splendor since 8 Months. 31.0 %, of respondents are using Hero Honda splendor since above one year.
? Most of the consumers 41.33% are influenced by the Television for buying the Hero Honda Splendor 31.33% respondents purchased through News Papers. ? 99% of consumers purchased the Hero Honda Splendor because of its advertisement. ? 49.33% of the respondents are satisfied with the price of Hero Honda Splendor 42%, of respondents are highly satisfied with the price of Hero Honda Splendor. 8.66% of respondents are not satisfied with the price of Hero Honda Splendor.
71
SUGGESTIONS & RECOMMONDATIONS
? s the customers prefer to buy Hero Honda because of its brand name, the company should try to increase the value of its brand name. ? Company must help and encourage the dealers in conducting more promotional activities to make the customer to purchase Splendor. ? Special treatment should be given for the customers who purchase vehicle through net cash, this is in order to encourage the customers to get the product through cash instead of purchasing through installment. ? Around 9 % of the customers are not satisfied with the services of M/s Phoenix Motor, because of lackness of workers in providing service to customers, the managing should create a favourable working condition to make the workers to work with involvement. 90% of the customers are loyal to the Phoenix Motor service, so measures should be taken to retain their relationship. ? The company should concentrate in giving advertisements in television through news paper as 99 % of consumers purchased Hero Honda Splendor because of its advertisement.
72
? 8.66 % of respondents are not satisfied with price, because of its increase the price of Splendor, and higher pricing of spare parts. ? Company should continue reposition their brand on the basis of splendor popular brand, and has good value upon purchasing. ? Steps should be taken to minimize the maintenance cost to that extent the technology should be updated.
73
CONCLUSION 1. In the survey business people and professional people dominantly own Hero Honda Splendor.
2. Most of the respondents purchased Hero Honda for fuel consumption (mileage), appearance and brand name.
3. As per the information revealed by the different respondents more than 40 percent have the impact of advertisement on consumers and about 30% prefer to see advertisement in newspaper.
4. In the survey nearly 90% the respondents are satisfied with the service provided by M/s. PHOENIX Motors.
5. Most of the consumers come across of Hero Honda Splendor through media of Advertisement (nearly 50%) and nearly 40% by friends.
74
6. One of the staggering features about the vehicle is availability of spare part. Nearly 92% of the customers are satisfied with the availability of spare parts.
7. As per the information revealed nearly 90% of the customers are satisfied with the price of Hero Honda Splendor.
75
QUESTIONNAIRE A study on consumer behavior towards Hero Honda Splendor Dear respondent, I, G.Mani Kumar, student of MBA request you to co-operate and reveal the required information to make survey successful one. Date ……….. Time ……….. 1. Name of the Respondent 2. Address Phone No. Registration No. No. of services 3. Occupation (a) Student (d) Employee : : : : : ( (b) Business (e) Others (c) Profession ( ( ( ) ) ) )
4. Are you having any bike? (a) Yes (b) No 5. Are you user of Hero Honda? (a) Yes (b) No 6. Is it the first vehicle you have purchased? (a) If Yes: SKIP to next question (b) If No: what was the earlier brand ____________
76
7. How long are you using this bike? (a) 2 months (d) 8 months (b) 4 months (e) above 1 year (c) 6 months
(
)
8. What is the mode of Purchase you want? (a) Installment (b) Financial assistance (c) Net payment 9.Which features make you to buy Hero Honda Splendor?
(
)
( (a) Brand name (d) Price (b) Appearance (e) Durability (c) Mileage
)
10. How did you come across of Hero Honda Splendor? (a) Friends (b) Relatives (c) Advertisement (d) Dealer
(
)
11.What is your satisfaction level of Pricing Hero Honda Splendor? ( (a) Highly satisfied (b) Satisfied (c) Not satisfied (d) partly satisfied. 12. Have you seen any advertisement of hero Honda Splendor? ( (a) Yes (b) No
)
)
13. Which media of advertisement of Hero Honda Splendor influence you a lot? ( ) (a) Television (b) Print media (c) Showroom display (d) Road display 14. Do you have any problem with the availability of spare parts? ( (a) Yes (b) No )
77
15. Are you satisfied with the services provided by M/s. Phoenix Motors ( ) (a) Highly satisfied (b) Satisfied (c) Partly satisfied (d) Not satisfied 16. Do you visit any other service center? (a) If Yes : what is the reason _______________________ (b) No : 17. What is the disadvantage of Hero Honda Splendor? (a) Poor Lighting (b) High cost © Maintenance cost
Thanks for your co-operation
78
SPECIFICATIONS
Item DIMENSIONS Overall length Overall width Overall Height Overall Base WEIGHT Kerb weights CAPACITIES Engine Oil 0.9 liter 0.75 liters at draining Fuel Tank Fuel Reserve Capacity 10.5 liters 1.4 liters 162-165 cm3, recommended Oil: ATF or an Equivalent 109 kg. 1970 720 1040 1230
Front fork Oil disassembly
79
ENGINE POWER Bore and stroke Compression ration Displacement Spark plug Spark Plug Gap Spark plug (7.2 Ps at 8,000rpm) 50x49.5mm 9.0:1 97.2cm2 0.6 – 0.7 mm IN:0. 05MM Ex: 0.05mm
80
BIBLIOGRAPHY
1. KOTLER PHILIP, MARKETING MANAGEMENT, 9th EDITION, PHI PUBLICATION, NEW DELHI, 2000. 2. KOTHARI, C.R. RESEARCH METHODOLOGY, 4th EDITION, PAL PUBLICATION, HYDERABAD, 1997. 3. GUPTA, S.P,STATISTICAL TECHNIQUES, 11th EDITION, S.CHAND & CO. PUBLICATION, CHENNAI, 1997. 4. SHARMA. D.D. MARKETING RESEARCH, 2nd EDITION, CHARMALATHA PUBLICATION, NEW DELHI, 1999. 5. SHOPIA SHANTHI, QUANTITATIVE METHODS IN BUSINESS, 3rd EDITION, CHARMALATHA PUBLICATION CHENNAI, 1999.
81
doc_464498614.doc
Advertising or advertizing is a form of communication for marketing and used to encourage, persuade, or manipulate an audience (viewers, readers or listeners; sometimes a specific group) to continue or take some new action.
HISTORY AND IMPORTANCE OF AUTOMOBILES
From drawn to dusk, day to day, in everyone’s life, activities carried out by man involve moving from one place to another. This may be either goods or man himself. All the wants and needs of men are not available at arm length and also it is not possible for any one to build a world for himself. To meet those needs and wants, transportation has become
necessary in everyone’s life.
An invention by earlier man is the result of today’s sophisticated, convenient and the state-of-the art. Technology in automobiles on the
Indian as well as foreign roads. With the population increasing rapidly, the automobile industry also gained momentum. Not to mention now
automobiles have been replaced as luxury item to one of the basic amenities in life.
It was about hundreds of years ago, when man used a pair of logs and a sheet of wood or other natural material placed on the logs for moving
1
things from one place to another. Further, developments took place in this direction and manually operated carts were seen as a tool for transportation and then the animal pulled carts and so on.
Many developments could be seen taking place at rapid place when Ford with his brilliant invention, brought a great revolution in the Transport and automobile industry. Ford for the first time was successful in inventing a power driven vehicle.
The growth momentum generated in the latter half of eighties is significant. With the growing needs and demand, various types of vehicles were produced in parallel to suit to the changing tastes incorporating the most conveniences and comfort in the models developed one after the other.
The automotive industry is regarded as the main indicator of the industrial health of a nation and is hence considered as the barometer of any economy’s health.
2
As it is known to ail, the technology up gradation is in phase of fast improvements and developments and with this personal transportation is picking up a prime consideration now a days.
If India is to accelerate industrial growth and achieve a major shift in its composition of exports in favour of value added products, industries like automobiles have to assume a major responsibility.
3
VARIOUS CATEGORIES IN AUTOMOBILES
No, one product can meet the needs, wants and desires of the complete market in universe. For every product, market segmentation will result in targeting the right customer and thus capture major market contributing to high scales.
Market segmentation is done on the basis of the consumer’s preferences, tastes, likes, usage, purchasing power, application, etc. Thus different customer group can be grouped on the above basis. The Indian automobile industry has, over the years, grown in scale with a diversified product range. This product range will cater to the needs of different
customers. The several of automobile manufactured in India are: 1. Passenger Cars 2. Jeeps and utility Vehicles. 3. Medium commercial Vehicles 4. Light Commercial Vehicles 5. Three Wheelers 6. Two wheelers
4
The above categories are being made on the basis of product design payload etc., In addition, numerous shapes, colours, sizes, prices, utility and applications form as intelligent choice to the consumer who can make a purchase in parallel to his/her tasters, preferences and liking.
This also helps the manufacturer to define his business acute. Since automobile industry is a crore sector, it is beyond the reach of Indian manufacturer to manufacture all category types of vehicles. Hence, he
decides to take up the business in his capacity and cater to the demand in particular segment.
This also helps the manufacturer to stabilize and concentrate on the business while being capable to complete in the competitive environment adopting the latest technology and other developments taking place in any part of the world.
TWO WHEELER AND ITS ROLE IN INDIAN CONTEXT As the cities grow and suburbs expand, transportation needs becoming more and more acute. With mounting pressure on the public transportation for which two wheelers are ideal.
5
The two-wheeler industry today has a significant role in the Indian economy. With an annual turnover of Rs.9000 crores and
compounded average growth of 10 percent in recent years, it is of the few industrial sectors in the growth phase today considers personal transportation as one of his basic needs.
TABLE
SHOWING
THE
DETAILS
OF
TWO
WHEELERS
PRODUCTION AND SALES
TABLE No. 1
Year 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003
Production 29,79,277 30,72,667 34,79,155 35,13,909 40,38,184
Change % 12.16 03.17 13.25 10.03 14.92
Sales 29,63,497 30,44,074 34,49,233 37,94,156 41,39,079
Change % 11.48 02.72 11.75 12.10 12.97
(SOURCE: SECONDARY DATA
)SALES CHANGE
6
Graph No.1
12.97
11.48 1998-1999 1999-2000 2000-2001 2.72 2001-2002 2002-2003 11.75
12.1
PRODUCTION CHANGE
Graph No. 2
14.92
12.16 1998-1999 1999-2000 2000-2001 3.17 2001-2002 2002-2003 13.25
10.03
7
The two-wheeler industry basically comprises mopeds, scooters, scooterettes and motorcycles. Mopeds are basic entry-level products aimed at lower/middle income groups, offering economy. This category dominated by TVS SUZUKI, which has a market share of 50 percent today. The other major players in this segment include KINETIC ENGG., HERO MOTORS and BAJAJ AUTO.
Scooters, which found largest segment in the industry (37 percent) is dominated by BAJAJ AUTO. It is however facing stiff competition from LML, which offers better style and technology to the Indian customers. However, dominance of this category has been declining because of shift in the customer preferences.
Major part of the growth in the two-wheeler industry has come from Motorcycle especially the Indo-Japanese 100cc Motorcycles, which are considered fuel efficient, reliable and suited for rough roads.
Scooterettes also growing at a fast phase and are being increasingly perceived as a better opinion providing convenience and motor style, by
8
urban customers. In this category, TVS Scooty holds a dominant market share. With sales of over three million vehicles, India is the second largest two-wheeler market in the World. Vehicle has become a necessity for dayto-day busy life, with the accelerated industrial and business activity in a liberalized environment. However, given the limited purchasing power and to high cost of cars, majority of the middle class vehicle users prefers twowheelers. TWO – WHEELERS INDUSTRIES
Table No.2
Lakhs S.No. Brand Name Growth Rate Sales April – Oct. 2.87 1.97 1.44 1.10 Sales Oct – Apr. 4.04 2.13 1.84 1.22
1. 2. 3. 4.
Hero Honda Bajaj TVS Suzuki Escorts Yamaha
40.00% 08.12% 25.22% 10.74%
(Source: Secondary Data
Over growth = 23.909
TWO – WHEELER INDUSTRY IN ASIA
With sales of over million vehicles, India is the second largest twowheelers market in the World. China is the market leader with around 51 percent of the Asia market; India, Thailand, Indonesia and Taiwan are the other key markets for two-wheelers with market shares of 19 percent, 10 percent, 9 percent, and 5 percent respectively.
The Chinese market is expected to grow rapidly and increase to 13.21 million units by the year 2003 and account for 50 percent of the two-wheeler market in Asia. India and Indonesia are the other markets exhibiting strong growth because of increase in the number of people in the middle-income bracket. But, the market for two-wheelers in more developed countries like Taiwan and Korea is expected to taper off and start showing trends of decline due to increasing affluence among the population and shift in consumer preference to passenger cars.
Vehicle has become a necessity for day-to-day busy life, with the accelerated industrial and business activity in a liberalized environment. However, given the limited purchasing power and high cost of cars, majority of the middle class vehicle users prefers two-wheelers.
10
CHANGING THE PROFILE OF TWO WHEELERS INDUSTRY Graph No. 3 2002 - 2003
60 50 40 30 20 10 0 Scooters Mopede Motorcycle 30 30
50
1994-95
50 40 30 20 10 0 Scooters Mopede Motorcycle 25
40 34
This rears an appreciable shift in demand from scooters to motorcycles. Four years ago scooters have 45% now it comes to 30% because 1. Economy 2. Fuel Efficient 3. Affordability
11
EXPORT OF TWO-WHEELER INDUSTRY
The industry is targeting 20 percent exports, the government needs to facilitate indigenous research and upgrading for design capability along with providing trade incentives for exports. Now SAARC countries like
Bangladesh, Sri Lanka etc., since the size of market in these economies is very small, the industry needs to identify new markets if it is to achieve its vision of 20 percent exports.
Primary reasons for the low levels of exports are: first, the Indian players have not felt the need to look outside India as the domestic market has been growing rapidly. Even in 1997-98 when the rest of the auto sector slowed down, this segment grew at three percent. Secondly, there exist significant gap in technical capabilities between Indian manufacturers and their global competitors.
On the other hand, freer trade under WTO can open lot of export opportunities for the Indian two-wheeler players. But to fully exploit these exports potential Indian players need to improve the product design and quality standards to the international level.
12
NEED FOR THE STUDY
Every business enterprises required vital information to keep alive it’s day to day business activities. The nature of information required, differs from situation to situation. Supporting organization is evaluating its
marketing effort. Then marketer has to appraise the marketing effort and then has to find means of improving it, and then information required is of consumer research. After the evolution of marketing concept, marketing effort of organizations is channelised towards target market. So,
understanding of tastes and preferences of target market assumed greater importance. So, every organization carries out consumer research to
ascertain the data, regarding target market.
The survey consumer behavior is helpful to the company to know how fare the consumer are satisfied with the product and what makes them to but and to know what consumers need more form the product the collected data is helpful to know changing tastes, preferences, trends in buying behavior of the customer and to make product improvements.
13
With the stiff competition coming up at a rapid pace and also due to changing nature of the market, a need was felt by M/S PHOENIX Motors, Hyderabad, to take up a study of the type and hence intended to conduct a study on consumer behavior towards Hero Honda Splendor. Thus the need for the study paved way in performing project work of this kind.
14
COMPANY PROFILE
Hero group in collaboration with Japanese company HONDA MOTORS established HERO HONDA MOTORS LTD., in 1984. registered office and works of the company situated at Ghaziabad. The Hero
Honda is the first company to introduce 4-stroke motorcycle on India roads. It tested success because of it unique qualities like fuel efficient, reliable and situated for rough roads. Over 35 million units were sold worldwide and it gave the company significant advantage over the other motorcycle available in the country. The other major players in the motorcycle’s segment include TVS Suzuki, Bajaj Auto and Escorts Yamaha. In 1996-97 Bajaj introduced 4-stroke bike against Hero Honda Splendor, but Hero Honda Splendor motors ltd., hardly face any problem of competition for Bajaj because of its superior specifications. The company has nine 100-CC models styled but all united by Eco-friendliness of the engine. The models being ? Hero Honda CD 100 ? Hero Honda CD 100SS ? Hero Honda Ambition ? Hero Honda Splendor ? Hero Honda Street ? Hero Honda Sleek
15
? Hero Honda Splendor plus ? Hero Honda Passion ? Hero Honda Passion plus Despite a great decline in the sales in the automobile industry Hero Honda Splendor has recorded a phenomenal 59% growth in the net profits during the year 98-99 touching 121.13 crore as against 76.60 crore for the previous year with market capability 4713 crorers.
While growth in automobiles sector was a mere 1 percent and in the two-wheeler industry 3 percent, the motorcycle segment registered a growth of 16 percent. Against this background Hero Honda Splendor registered an incredible growth of 59 percent for the year 1998-99. A total of 4,07,546 motorcycles were sold during the year. As a market leader Hero Honda Splendor enjoys a market share of 36 percent in the country.
Honda’s export performance has been limited by the fact that exports could only be made to select markets and that too only through Honda outlets. Nevertheless, over five thousand motorcycles were exported in 1993-94. To meet the demand in the market the company has set up a new
16
plant at Gorgon near New Delhi, at the cost of Rs.181 crore with annual capacity of 1.5 lakh units. The strength of the company lies in its distribution, which has been expanding its network feverously. Today over 500 dealers scattered in the market. The main reasons for the commendable performance of Hero
Honda Splendor have been its uncompromising obsession for quality, excellent and commitment to the customer. Both the sales and after sale services are given greatest priority by the company.
ABOUT HERO HONDA SPLENDOR MOTORS
1.MANAGEMENT CEO and Director - Pavan Kanth Munjal Chairman - Brij Mohan lal Shyan Guptha.
General Manager 2. MANUFACTURING
Hero Honda splendor has created by manufacturing and selling 42 lakhs motorcycles within a span of 19 years since inception. By setting standards and benchmark in technology, after-sales service and
environment-friendly approach, Hero Honda Splendor has a vast network of around 500 dealerships and 100 service centers all over the country. That
17
way, Hero Honda Splendor definitely enjoys an edge over all other twowheelers manufacturers because it adopted the 4-stroke technology. 19 years ago whereas the others had it only recently. Hero Honda Splendor Motors is being rated as the best Honda plant outside Japan. The Indian plant is now accelerating to meet Honda’s Japan standards.
Modern motorcycles came to India in the mid-1980 in the form of hyphenated brands. Hero Honda Splendor, Ind-Suzuki, Kawasaki-Bajaj and so on. There are 45 Honda factories worldwide outside Japan manufacturing two wheelers and our plant is the best Honda plant outside Japan. Says Shyam Gupta, General manager, in charge of Gurgaon and Dharuhera factories.
At present, Hero Honda Splendor produces 2,650 motorcycles a day in its Gurgaon and Dharuherea plants in Haryana. Since production has picked up only recently due to demand growth it might end the year with 10 lakh and plan to reach a million in 2004. There are five parameters to judge a plant, says Gupta: quality, cost, delivery, margin and safety.
18
3. EXPORT: If export restrictions are removed it is major export item for our country. Export: April – October April – October April – October April – October 4. ADDRESS: Office and work of the 10 Head office : : Ghaziabad (UP) 99-00 2000-01 2001-02 2002-03 = = = = 5081 units 8224 units 10252 units 12395 units
No.34, Basanth Lock, Vasanthi Vihar, New Delhi.
Factories Dealers Address
: :
Gurgoan, Dharuher-Haryana PHOENIX MOTORS PVT.LTD. HUBSIGUDA HYDERABAD.
19
4. ECONOMIC PERFORMANCE: Table No.3 Year 2003 2003 2003 2003 2003 2003 Particulars Sales Profits Assets Market Capitals Return to Share Holders Operating Profit Margin Rs. (Crores) 1875 146.7 2420 5702 1429 266 Rank 47 42 132 23 75 52
(Source: Secondary Data
Hero Honda Motors Limited in also planning to launch some new – variants in the new year it may opt to float variants in the 125-150 cc. Segments on the CBZ Models launched recently. Hero Honda Splendor Motors will achieve a turnover of Rs.3000 crores in the year 2003. With all these achievement to its credit, Hero Honda Splendor is poised to enter the new millennium as a clear leader in the motorcycle segment. Hero Honda Splendor has plans to invest Rs.300 crores by 2004 with objective to introduce two new motorcycle models and expand the total production, capacity to 10 lakhs units per annum. AWARDS Over years, the company has received its share of accolades, including ? The national productivity council award (1990-91)20
? The economic times – Harvard Business School Association of India award.
ABOUT M/s. PHOENIX MOTORS PVT. LTD.
M/s. PHOENIX Motors Ltd., came into existence in the year 1986. It is the authorized Hero Honda Splendor dealer in Hyderabad. It is located in the heart of the town, which is having a spacious servicing station and a large godown. Phoenix Motors Ltd., has been rendering effective services to the customers and maintaining a high sales record. In the financial year 2002-2003 it has reached a sales figure of above 1300 motorcycles which relatively very high when compared the competitors in Hyderabad and it also one of the famous dealer network for the Hero Honda Splendor. It supplies through out the Hyderabad.
ABOUT THE PRODUCT HERO HONDA SPLENDOR
21
Hero Honda Splendor is a Indo-Japanese Motorcycle which has innovative specifications like fuel efficiency superior technology and 4stroke engine etc. This was the stroke model which was introduced by the company on the Indian road. This model attracted the consumers through its innovative eco-friendliness feature. Splendor occupied the supreme position in the Indian market because of its best performance. It has comfortable seating and smart appearance, which supports point-to-point riding, has the following specifications.
INTRODUCTION TO CONSUMER BEHAVIOUR
22
Consumer behavior is concerned with the activities and actions of people and organizations that purchase the goods and services, including the influences on these activities and actions.
The act of individual is obtaining and using goods and services, including the decision process that precede and determine these acts, comprise consumer behavior. This definition includes both ultimate To understand the
consumer and the purchaser of industrial goods.
consumer behavior we must examine the events that precede and follows the purchase act.
Information on buying behavior is generally used to predict or diagnose buyer’s actions in markets. Predictions involve anticipating what buyers will do at some future time. Because managers are responsible for the outcome of their decisions, they out to be sure that buyer behavior information is relevant to the decision situation. No one else understands the risks and uncertainties as well as they do. However, whether for prediction or diagnosis, is not easy. To begin with, the managers must know the ways in which buyer behavior information can help them.
MAJOR FACTORS INFLUENCING CONSUMER BEHAVIOUR
23
Consumers do not make their decisions in a vacuum. Their purchases are highly influenced by cultural, social, personal, and psychological factors. These factors are not possible to control by the marketers but must be taken into account. We want to examine the influence of each factor on a buyer’s behavior. CULTURAL FACTORS Cultural factors exert the broadest and deepest influence on consumer behavior we will look at the role player the buyer culture, sub-culture, and social class. CULTURE: Culture is the most fundamental determinant of a person’s want and behavior whereas lower creatures are largely governed by instinct, human behavior is largely learned. The child growing up in a society learns a basic set of values, perceptions, and behavior through a process of socialization involving the family and other key institution.
SUB CULTURE:
24
Each culture contains smaller groups of subculture that provide more specific identification and socialization for its members. Four types of
subcultures can be distinguished. Nationally groups are found with in large communities and exhibit distinct ethnic tastes and proclivities. Religious groups with specific Cultural preference and tabs. geographical areas also effect the consumer behaviors. Racial groups and
SOCIAL CLASS:
Virtually
all-human
societies
exhibit
social
stratification.
Stratification sometimes takes from a cast e system where the members of different castes are reared for certain roles and can not change their membership. More stratification takes the form of social classes. Social classes are relatively homogenous and enduring division in a society, which are hierarchically ordered and whose members share similar values, inters and behavior. Social classes show distinct product and brand preferences in such areas as clothing, home furnishings, leisure activities, and automobiles.
SOCIAL FACTORS:
25
A consumer’s behavior is also influenced by social factors such as the consumer reference groups, family and social role and statuses.
REFERENCE GROUPS: A person’s behavior is strongly influenced by many groups. Person’s reference groups are those groups that have a direct or indirect influence on the person’s attitude or behavior. Groups having a direct influence on a person are membership group. These are groups to which the person
belongs and interacts, some are primary groups with there is fairly continuous interaction, such as family, friends, neighbors and co-owners. The persons also belong to secondary groups, which tend to be more formal and where there is less continuous interaction.
FAMILY: Members of the buyer’s family can exercise a strong influence on the buyer’s behavior. The family of orientation consists of one’s parents. From parents a person acquires an orientation toward religion, politics and economics and a sense of personal ambition, self-worth and love.
26
A more direct influence on every day buying behavior is ones family of procreator; namely, one’s spouse and children. The family is the most important consumer buying organization in society and it has been researched extensively.
ROLES AND STATUSES: A person participates in many groups throughout life family club, organizations. The position in each group can be defined in terms of role and status.
PERSONAL FACTORS: A buyer’s are also influenced by his or her personal characteristics, notably the buyer’s age and life cycle stage, occupation, economic circumstances, lifestyle and personality and self-concept.
AGE AND LIFE CYCLE STAGE: People change the goods and services they buy over their lifetime. Consumption is also shaped by the stage of the family life cycle.
27
OCCUPATION: A person’s consumption pattern is influenced by his or her occupation. Marketers try to identify the occupational groups that have an above average interest it their products and services.
ECONOMIC CIRCUMSTANCES: Person’s economic circumstances will greatly effect product choice people economic circumstances consist of their spendable income, savings and assets, borrowing power and attitude toward spending versus saving.
PSYCHOLOGICAL FACTORS: A buyers buying choices are also influence by major psychological factors. The following are the individual influence on consumer behavior. Needs, Motives, perceptions, Attitudes and Learning.
a. NEED: The starting point in the purchase decision is the recognition of a need. needs. The consumer is typically confronted with numerous unsatisfied
28
Maslow’s five level hierarchies of needs is well known, is relevant in this context. As each need is fulfilled, another higher level need arises and demands priority in its satisfaction. Marketers are interested in psychological needs as they are closely connected to what he product does. Food satisfies hunger, medicines heal a sick person. Safety needs are insurance and real estate and so on. For many people refrigerators, cars and air conditioners are status symbols and satisfy the needs of self-esteem, prestige and status.
b. MOTIVES: A motive is an inner state that directs us towards the goal of satisfying a felt need. Important buying motives are pride, vanity, fashion, possession, fear safety, love and affection, economy, curiosity, social approval, beauty and comfort or convenience. These are the driving forces behind buying behavior and may be based on physiological or psychological wants.
29
c. PERCEPTION: Individual behavior resulting from motivation is affected by how we perceive stimuli. Perception is the meaning we attribute to incoming stimuli through out five senses.
Our perception of an object of event is the result of the interception of two of factors a) Stimuli factors such as size, colour, weight or shape b) Individual factors which are characteristics of individual.
d. ATTITUDE: Attitude may be defined as a person’s enduring favorable or unfavorable evaluation, emotional feeling, and proper contraction tendency towards some object of idea. Attitudes are formed over a period of time through individual experience and group’s contacts and are highly resistant to change. e. LEARNING: Since marketing is a concerned with the process by which consumer decision change. Over time as with describing those decisions at one point of time, the study of how learning takes place is important. Learning may be defined as changes as a result of experience.
30
CONSUMER BUYING PROCESS
Marketers must be extremely in analyzing, consumer behaving. Consumers often turn down that appears to be a winning offer if they do not endorse the product losses. Marketers must identify, who make the buying decision and the type of buying decision involved i.e., steps in buying process. i. PROBLEM PERCEPTION: The process of buying normally starts with the customer’s perception of a problem, in the form of a need, desire or requirement. These will persuade the customer to turn to his environment, seeking information and methods to solve his problem. ii. AWARENESS: The World of information around the consumer makes him award of the product existence the product that would solve his problem and meet his need. iii. COMPREHENSION: Consumer in now not only aware of the product’s existence, he has gained knowledge about the product. Comprehension comes out of his ability to reason with information. The awareness and comprehension
31
represent the information process stages. These two stages constitute the cognitive field of the purchase process. iv. ATTITUDE: It is the sum total of the individual faith and feelings toward a product. As a result of his awareness and comprehension on the consumer develops and attitude – favorable towards the product. v. LEGITIMIZATION: The buyer must be convinced the purchase of the product is the legitimate course of action. This stage often stands as a barrier between a favorable attitude towards the products and actual purchase. At this state he may seek further information regarding the product, or attempt and assessment of the information already available to him. vi. TRAIL: Conviction leads the consumer to try the product on a small scale. He tries to evaluate product from his own experience. vii. ADAPTATION: A successful trail leads him to buy / adopt the product. Trail and adoption stage constitutes the behavioral field in the buying process.
32
viii. THE POST – PURCHASE DISSONANCE: The decision to buy or the actual purchase activity may create some restlessness in the fluid of the individual. He is not sure about the product. He may feel that the ‘other brand’ would have been better. He may even feel that the salesman has taken him for a ride. As this stage of dissonance is an uncomfortable one, the individual himself will seek means to recover his conviction and poise. BUYING HABITS: Marketers should also know the buying habits of customers, how, when and where they buy. Buying factors can be best studied in relation to the types of products purchases. In fact, classifications of consumer goods have been made on the basis of buying habits. One such classification divides them into convenience goods, shopping goods and specially goods. CONVENIENCE GOODS: There are certain products, which the consumers would like to purchase with the least possible efforts. Such items care purchases
frequently and their unit price is low. There is no much of planning behind the purchase products like toothpaste soap, cigarettes etc., come under this category. There is a recurring need of these items and the consumer would desire to get it an easily accessible place.
33
OBJECTIVE OF THE STUDY:
1. The main objective of the study is to know the factors accomplishing for selection of Hero Honda Splendor. 2. To know the consumer satisfaction towards service provided by M/s. Phoenix Motors. 3. To record a note on media preference of consumers towards Splendor. 4. To know about the satisfaction level of pricing Splendor.
34
SCOPE OF THE STUDY
This study on consumer behavior towards Hero Honda splendor will give an idea for the dealers to position their market strategies, in future.
The study will reveal the customers level of satisfaction, media preferences, help in implementing more promotional activities.
35
LIMITATIONS
Sample selected for this study is 300.
The sample size is
proportionately very less compare to the district population.
For the time limits & monetary factor I covered the places wherever convenient to me. So cannot, able to predict on the basis of assumption for other location in Hyderabad.
The respondent who answer the questions, there may be some bias due to ignorance. They didn’t know about importance of the study, so whatever response from the mouth of respondents we talk into consideration. For some questions they are unable to say the Answer correctly. At this juncture we have to explain more precisely to understand the question even they may know the answer but they may not be in position to express their response related to this product.
36
METHODOLOGY ADOPTED FOR THE STUDY
Data collection for the purpose of analyzing behavior of consumer is really a horrendous task. Data for the study are collected both from primary sources and secondary sources.
The primary source of the data was obtained through a market survey conducted at Hyderabad. Having a clear understanding about the objectives of this study, a set of questions were prepared and developed, to be asked to the respondent. question like I. II. Open -ended questions Closed-ended questions The questionnaire consisted of the different types of
In the closed – ended type of questions, dichotomous, multiple-choice questions have been included. The sampling methods used were
convenience sampling. The sample size taken for the study was 300 respondents covering all the places at Hyderabad.
Secondary source of the data has been an aid to perform the survey successfully. The various information bulletins, company journals and other
37
printed materials gave an in-depth knowledge on the automobiles and further this information enlightened in developing a research plan and collection of data needed for the research in the dare of interest. Sample Size : The sample size taken for the study was 300 respondents
Area of the Study : Study area cover all the places of Hyderabad.
Sample units : Hero Honda customers
Sample Procedure : Convenience sampling techniques was adopted in conducting sample survey with Hero Honda customers.
Statistical Tools : Chi – square test Simple percentage method
38
SECONDARY DATA Any data, which were gathered earlier for some other purpose, are the secondary data in the hands of the marketing researcher. Thus primary data collected by one person may become secondary data with another. For either demographic statistics collected every ten years are the primary data with the Registrar General of India, but the some statistics used by anyone else could be secondary data with the individual. Advantages in the case of secondary data are that it is for more economical, a good seal of effort in collecting the data is saved, and saves lot of time, another hand the disadvantages are, it seldom fits perfectly into the frame work of the marketing research, the data may be some work out data. Secondary data can be divided into two category (1) Internal Secondary data and (2) External Secondary data. Internal data is procured or competed by a researcher in its normal operations within its premises. This data may include credit records, order, slopments, sales results etc., External data is generated and collected from myriad’s of events and sources outside the firm’s premises. Large number of sources available from which such data can be extracted. External data sources can be divided into three categories. They are governmental sources, commercial sources,
Miscellaneous sources.
39
ANALYTICAL TOOLS
CHI-SQUARE TEST Chi-square test is anon-parametric test used more frequently by marketing research to test hypothesis. This test is employed for testing hypothesis when distribution of population is not known and when nominal data is to be analyzed. The formula for calculating the value of Chi-square is. ? 2 = ?(O-E) 2 E O = Observed Value E = Expected Value Degree of Freedom = (row-1)(Column-1) SIMPLE PERCENTAGE METHOD Percentages are used in making comprehensions between two or more series of data, percentages are used to compare the relative terms, the distribution of two or more series of data.
40
SAMPLING: 300 Questionnaires has been prepared for data collection regarding the Hero Honda Splendor. It was general survey. Simple random sampling has been used for collecting the data.
41
DATA ANALYSIS AND INTERPRETATION
CHI-SQUARE TEST-I To find out the relationship between occupation (Vs) overall performance of Hero Honda Splendor. OVERALL PERFORMANCE TABLE NO:4 Occupation Student Highly satisfied 32 (30.09) Employee 34 (28.46) Business 34 (44.73) Profession / others 22 (18.70) Total 122 Satisfied 30 (33.55) 26 (31.73) 66 (49.86) 14 (20.85) 136 Not satisfied 12 (10.36) 10 (9.8) 10 (15.4) 10 (6.44) 42 300 46 110 70 Total 74
NULL HYPOTHESIS: (Ho) there is no significant relationship between Occupation (Vs) performance of Hero Honda Splendor. Alternative Hypothesis (H1): There is significanct relationship between occupation (Vs) performance of Hero Honda Splendor.
42
CALCULATIONS Observed frequency 32 34 34 22 30 26 66 14 12 10 10 10 Expected frequency 30..9 26.46 44.73 18.70 33.55 33.75 19.80 20.85 10.36 9.8 15.4 6.44 (O-E)2 3.65 30.69 115.13 10.89 12.60 32.83 260.49 46.92 2.69 0.04 29.16 12.67 Total Degree of freedom = Calculated value Tabulated value = = 6 21.419 12.419 (0-E)2 E 0.12 1.07 2.57 0.58 0.375 1.034 5.22 2.25 0.26 4.08 1.89 1.97 21.419
Calculated Value > Tabulated Value Hence we reject Null Hypothesis. Inference: Since Calculated value > Tabulated value, So there is relationship between the occupation (s) overall performance of Hero Honda.
43
CHI-SQUARE TEST – 2 To find out the relationship between the occupation (Vs) features of Hero Honda. Features / Occupation Brand Name Student others 34 (39.68) Appearance 18 (16.64) Technology 10 (13.44) Resale value 22 (15.36) Price 12 (10.88) Total 96 Employees / profession 38 (38.85) 18 (16.30) 12 (13.16) 12 (10.65) 12 (10.65) 94 Business 52 (45.46) 16 (19.06) 20 (15.4) 18 (12.46) 18 (12.46) 110 300 34 34 42 52 Total 124
NULL HYPOTHESIS : (Ho) there is no significant relationship between the Occupation and features of Hero Honda Splendor. ALTERNATIVE HYPOTHESIS (H1) : There is significance relationship between the occupation and features of Hero Honda Splendor. D.F. Tabulated Value = = 8 10.35 15.05 Calculated Value =
44
INFERENCE : Since calculated value is greater than the calculated value hence we accept the null Hypothesis. The following table shows the occupation of the consumers: Table No:5 S.No. 1. 2. 3. 4. 5. Occupation Student Employee Business Professional Others Total (Source : Primary Data) INTERPRETATION: • 18.66 % of Students purchased Hero Honda Splendor • 23.33 % of Employees purchased Hero Honda Splendor • 33.33 % of Business purchased Hero Honda Splendor • 20.66 % of Professional purchased Hero Honda Splendor INFERENCE: The above table shows that more consumers of Hero Honda Splendor are Business people and employees. Total 56 70 100 62 12 300 Percentage 18.66 23.33 33.33 20.66 4.0 100 %
45
The picture shows different occupations owing Hero Honda Splendor Graph No. 4
4 20.66
18.66 Student Employee Business Professional Others
23.33 33.33
46
Table showing media preference for advertising Hero Honda Splendor. Table No. 6 Sl.No. 1. 2. 3. 4. Media Television News paper Show Room Display Road Display Total (Source :- Primary Data) INTERPRETATION :• From the above table we can see that, majority (41.33% of the respondents are influenced by the Television for buying the Hero Honda Splendor. • 32.33% of the respondents are influenced through the advertisement given in the news papers. • 12.0% of the respondents are influenced by the show room display for buying the Hero Honda splendor INFERENCE: nearly 41% of the respondents before to see advertisement through media Television and about 32% of them preferred Media News paper. No. of Respondent 124 98 36 42 300 Percentage 41.33 32.33 12.0 14 100 %
47
Picture shows media preference for advertising Hero Honda Splendor. Graph No. 5
45 40 35 30 25 20 15 10 5 0
41.33
32.33
12
14
Television
News Paper
Showroom Display
Road Display
48
2. The following tables shows the sales services of M/s. Phoenix motors Table No. 7 Sl.No. 1. 2. 3. 4. Aspect Highly satisfied Satisfied Partly satisfied Not satisfied Total (Source : Primary data) INTERPRETATION : • From the above table we see that Majority 41.0% of the respondents are satisfied with the services of M/s. Phoenix Motors. • 37.33% of the respondents are fully satisfied with the services provided by the M/s. Phoenix Motors. • 12.66% of the respondents are partly satisfied with the services provided by the M/s. Phoenix Motors. • 9% are not at all satisfied with the services provided by the M/s. Phoenix Motors. INFERENCE: From the above table it is inferred that nearly 90% of the consumers are satisfied and about 5% are Un satisfied with the sale service provided by M/s. PHOENIX Motors.
49
Total 112 123 38 27 300
Percentage 37.33 41.0 12.66 9.00 100
%
Picture shows consumer satisfaction with service provided by M/s. PHOENIX MOTORS PVT. LTD. Graph No. 6
45 41 40 35 30 25 20 15 10 5 0 Highly Satisfied Partly Not Satisfied 37.33
12.66 9
50
3. The following table shows the Consumers preferences to buy Hero Honda Splendor Table No. 8 S.No. 1. 2. 3. 4. 5. 6. 7. 8. Aspect Brand Name Appearance Mileage Price Durability Technology Safety Resale value Total (Source : Primary data) INTERPRETATION : • From the above table we see that Majority 22.66% of customers prefer to buy Hero Honda because of its Brand name. • 18.66% of customers prefer to buy Hero Honda because of its appearance. • 19.66% of customers prefer to buy Hero Honda because of its Mileage’s. Total 68 56 59 17 9 30 22 39 300 % 22.66 18.66 19.66 5.66 3.0 10.0 7.33 13.0 100
51
• 5.66% of customers prefer to buy Hero Honda because of its Price.
INFERENCE: From the above table it is observed that the top priority was given to brand name, mileage, appearance and technology. About 13% of the consumers go for resale value.
52
Picture shows the Consumers preference to buy Hero Honda Splendor Graph No. 7
13 7.33
22.66
10 3 5.66 18.66 19.66
53
3. The following table shows how the consumers come across of Hero Honda Splendor Table No. 9 S.No. 1. 2. 3. 4. Friends Relatives Advertisement Dealer Total (Source : Primary data) INTERPRETATION • From the above table we see that Majority 52.66% of the respondents are influenced by advertisement of the Hero Honda Splendor. • 41% of the respondents are influenced by the Friends for purchasing the Hero Honda Splendor • 4.33% of the respondents are influenced by the Dealers for purchasing the Hero Honda Splendor. • 12% of the respondents are influenced by the Relatives for purchasing the Hero Honda Splendor. INFERENCE: From the above table it is clear that most of the consumers come across the Bike through the Media advertisement and Friends. Aspect Total 123 6 158 13 300 41 2 52.6 4.33 100 %
54
Picture shows how the consumers come across of Hero Honda Splendor Graph No. 8
60 52.6
50 41 40
30
20
10 2 0
R el at iv es en t t is m D ea le r en ds
4.33
Fr i
A dv er
55
4. The following table shows the satisfaction level of pricing Hero Honda Splendor. Table No. 10. S.No. 1. 2. 3. Aspect Highly satisfied Satisfied Not satisfied Total (Source : Primary data) INTERPRETATION : • From the above table we see that majority 49.33% of the respondents are satisfied with the price of Hero Honda Splendor. • 42% of the respondents are highly satisfied with the price of Hero Honda Splendor. • 8.66% of the respondents are not satisfied with the price of Hero Honda Splendor. INFERENCE: From the above table it is observed that most of the Total 126 148 26 300 % 42 49.33 8.66 100
consumers are satisfied with the price of Hero Honda Splendor and about 8% of consumers are not satisfied.
56
Picture shows the satisfaction level of pricing Hero Honda Splendor. Graph No. 9
8.66 42 49.33
Highly satisfied Satisfied Not satisfied
57
The following table shows the details of customers usage of vehicle before purchasing Hero Honda splendor. Table No:11 S.No 1. 2. 3. 4. 5. 6. 7. Aspects Scooter Yamaha TVs Suzuki Hero Honda CD 100 Hero Honda Ambition Mopeds First Vehicle No of Respondents 29 17 12 33 41 57 111 300 Percentage 9.6 5.6 4.0 11.0 13.6 19.1 37.0 100
(Source: Primary Data) INTERPRETATION: • From the above table 9.6 % of respondents using scooter before using hero honda splendor. • 5.6 % of respondents used yamaha before using hero honda splendor. • 4.0 % of respondents used Tvs suzuki before using hero honda splendor. • 11.0 % of respondents used hero honda cd 100 before using hero honda splendor. • 13.6 % of respondents used hero honda ambition before using hero honda splendor. • 37 % of respondents have purchased splendor as their first vehicle INFERENCE:
58
From the above table it is clear most of the consumers mopeds, hero honda ambition, before using hero honda splendor. Picture Shows costumer used the vehicle before purchasing HERO HONDA SPLENDOR Graph No:10
10% 36%
6%
4% 11%
19%
14%
Scooter TVs Suzuki Hero Honda Ambition First Vehicle
Yamaha Hero Honda CD 100 Mopeds
59
Table shows the period, which Respondents are, using the Hero Honda Splendor. Table No:12 S.No 1. 2. 3. 4. 5. Aspects 2 Months 4 months 6 Months 8 months Above 1 Year Total No of Respondents 38 27 67 75 93 300 Percentage 12.66 9 22.33 25 31 100
(Source Primary Data) INTERPRETATION: • From the above table 12.6% of respondents are using Hero Honda splendor since 2 Months. • 9% of respondents are using Hero Honda splendor since 4 Months. • 22.3%, of respondents are using Hero Honda splendor since 6 Months. • 25.0%, of respondents are using Hero Honda splendor since 8 Months. • 31.0 %, of respondents are using Hero Honda splendor since above one year. INFERENCE: From the above table it is observed most of the consumers are using Hero Honda splendor above 1 year.
60
Picture Shows the Period which respondents are using Hero Honda splendor Graph No.11
35 31 30 25 20 15 10 5 0 2 Months 4 months 6 Months 8 months Aspects percenatge Above 1 Year 12.66 9 25 22.33
61
The following table shows the mode of purchased done by the respondents Table No:13 S.No 1. 2. 3. Aspects Installment Financial Assistance Net Payment Total No of respondents 147 107 46 300 Percentage 49 35.66 15.33 100
(Source Primary Data) INTERPRETATION: • From the above table 49% of the respondents purchase through installments. • 35.66% of the respondents purchased through financial assistance. • 15.33% of the respondents purchased by net cash. INFERENCE: From the above table most of the consumers 49% is purchased installments.
62
Picture Shows the mode of purchased done by the respondents Graph No:12
60 50 40 30 20 10 0 Installment Financial Assistance Aspects Net Payment 49
Percentage
35.66
15.33
63
Table shows Respondents Having problem with the availability of Spare Parts Table No:14 S.No 1. 2. Aspects Yes No Total (Source Primary Data) INTERPRETATION: • 13.33% of respondents for the having problem with the availability of Spare Parts • 86.66% of respondents not having problem with the availability of spare Parts INFERENCE: From the above table most of the consumers 86.66% satisfied with the problem with availability of spare parts. No of Respondents 40 260 300 Percentage 13.33 86.66 100
64
Picture Shows respondents having problem with the availability of spare parts Graph No:13
Availability of spareparts
13%
87%
Yes
No
65
The Table shows the Respondents visiting the Service centers. Table No:15
S.No 1. 2.
Aspects yes No Total
No of Respondents 29 271 300
Percentage 9.66 90.33 100
(Source Primary Data) INTERPRETATION: • 90.33% of respondents says that they don’t visit other service center. • 9.66% of respondents says that they visit other service center. INFERENCE: From the above table 9.66% consumers visit other service center.
66
Picture Shows do you visit any other service center Graph No.14
10%
90%
yes
No
67
Table showing disadvantages found by the Respondents in Hero-Honda. Table No:16 S.No 1. 2. 3. Aspects Poor Lighting High Cost Maintenance cost Total (Source Primary Data) INTERPRETATION: • 38.0% of respondents says that Poor lighting is disadvantage. • 40.66 % says that high cost is disadvantage of Hero Honda splendor. • 29.70% says that maintenance cost is disadvantage of Hero Honda splendor. INFERENCE: From the above table it is clear most of the 38.0 % consumers says that disadvantage Hero Honda splendor. No. of Respondents 114 97 89 300 Percentage 38.0 32.30 29.70 100
68
Picture shows disadvantage found by the respondents in Hero Honda splendor Graph No.15
30%
38%
32%
Poor Lighting
High Cost
Maintenance cost
69
FINDINGS
? 22.66% OF customers prefer to buy Hero Honda because of its brand name 18.66% of customers prefer to buy appearance, 19.66%, of customers prefer to buy Hero Honda because of its mileage. 5.66%, of customers prefer to buy Hero Honda because of its price. 3.0%, of customers prefer to buy Hero Honda because of its durability. ? 52.66% of the respondents are influenced by advertisement of Hero Honda splendor. 41% of the respondents are influenced by the friends for purchasing the Hero Honda Splendor. 4.33 % of the respondents are influenced by the dealers for purchasing the Hero Honda splendor. ? 49% of the respondents purchased through installments 35.66%, of the respondents purchased through financial assistance 15.33% of the respondents purchased by net cash. ? 41% of the respondents are satisfied with the service of M/S Phoenix Motors. 37.33%, of the respondents are fully satisfied with the service provided by the M/S Phoenix Motors. 12.66%, of the respondents are partly satisfied with the services provided by the M/S Phoenix Motors. 9%, of the respondents are not at all satisfied with the services provided by the M/S Phoenix Motors.
70
? 90.33% of the respondents says that they don’t visit other service center. Because they are satisfied by the servicing provided by M/S Phoenix Motors. ? 12.6% of Respondents are using Hero Honda splendor since 2 months. 9% of respondents are using Hero Honda splendor since 4 Months. 22.3%, of respondents are using Hero Honda splendor since 6 Months. 25.0%, of respondents are using Hero Honda splendor since 8 Months. 31.0 %, of respondents are using Hero Honda splendor since above one year.
? Most of the consumers 41.33% are influenced by the Television for buying the Hero Honda Splendor 31.33% respondents purchased through News Papers. ? 99% of consumers purchased the Hero Honda Splendor because of its advertisement. ? 49.33% of the respondents are satisfied with the price of Hero Honda Splendor 42%, of respondents are highly satisfied with the price of Hero Honda Splendor. 8.66% of respondents are not satisfied with the price of Hero Honda Splendor.
71
SUGGESTIONS & RECOMMONDATIONS
? s the customers prefer to buy Hero Honda because of its brand name, the company should try to increase the value of its brand name. ? Company must help and encourage the dealers in conducting more promotional activities to make the customer to purchase Splendor. ? Special treatment should be given for the customers who purchase vehicle through net cash, this is in order to encourage the customers to get the product through cash instead of purchasing through installment. ? Around 9 % of the customers are not satisfied with the services of M/s Phoenix Motor, because of lackness of workers in providing service to customers, the managing should create a favourable working condition to make the workers to work with involvement. 90% of the customers are loyal to the Phoenix Motor service, so measures should be taken to retain their relationship. ? The company should concentrate in giving advertisements in television through news paper as 99 % of consumers purchased Hero Honda Splendor because of its advertisement.
72
? 8.66 % of respondents are not satisfied with price, because of its increase the price of Splendor, and higher pricing of spare parts. ? Company should continue reposition their brand on the basis of splendor popular brand, and has good value upon purchasing. ? Steps should be taken to minimize the maintenance cost to that extent the technology should be updated.
73
CONCLUSION 1. In the survey business people and professional people dominantly own Hero Honda Splendor.
2. Most of the respondents purchased Hero Honda for fuel consumption (mileage), appearance and brand name.
3. As per the information revealed by the different respondents more than 40 percent have the impact of advertisement on consumers and about 30% prefer to see advertisement in newspaper.
4. In the survey nearly 90% the respondents are satisfied with the service provided by M/s. PHOENIX Motors.
5. Most of the consumers come across of Hero Honda Splendor through media of Advertisement (nearly 50%) and nearly 40% by friends.
74
6. One of the staggering features about the vehicle is availability of spare part. Nearly 92% of the customers are satisfied with the availability of spare parts.
7. As per the information revealed nearly 90% of the customers are satisfied with the price of Hero Honda Splendor.
75
QUESTIONNAIRE A study on consumer behavior towards Hero Honda Splendor Dear respondent, I, G.Mani Kumar, student of MBA request you to co-operate and reveal the required information to make survey successful one. Date ……….. Time ……….. 1. Name of the Respondent 2. Address Phone No. Registration No. No. of services 3. Occupation (a) Student (d) Employee : : : : : ( (b) Business (e) Others (c) Profession ( ( ( ) ) ) )
4. Are you having any bike? (a) Yes (b) No 5. Are you user of Hero Honda? (a) Yes (b) No 6. Is it the first vehicle you have purchased? (a) If Yes: SKIP to next question (b) If No: what was the earlier brand ____________
76
7. How long are you using this bike? (a) 2 months (d) 8 months (b) 4 months (e) above 1 year (c) 6 months
(
)
8. What is the mode of Purchase you want? (a) Installment (b) Financial assistance (c) Net payment 9.Which features make you to buy Hero Honda Splendor?
(
)
( (a) Brand name (d) Price (b) Appearance (e) Durability (c) Mileage
)
10. How did you come across of Hero Honda Splendor? (a) Friends (b) Relatives (c) Advertisement (d) Dealer
(
)
11.What is your satisfaction level of Pricing Hero Honda Splendor? ( (a) Highly satisfied (b) Satisfied (c) Not satisfied (d) partly satisfied. 12. Have you seen any advertisement of hero Honda Splendor? ( (a) Yes (b) No
)
)
13. Which media of advertisement of Hero Honda Splendor influence you a lot? ( ) (a) Television (b) Print media (c) Showroom display (d) Road display 14. Do you have any problem with the availability of spare parts? ( (a) Yes (b) No )
77
15. Are you satisfied with the services provided by M/s. Phoenix Motors ( ) (a) Highly satisfied (b) Satisfied (c) Partly satisfied (d) Not satisfied 16. Do you visit any other service center? (a) If Yes : what is the reason _______________________ (b) No : 17. What is the disadvantage of Hero Honda Splendor? (a) Poor Lighting (b) High cost © Maintenance cost
Thanks for your co-operation
78
SPECIFICATIONS
Item DIMENSIONS Overall length Overall width Overall Height Overall Base WEIGHT Kerb weights CAPACITIES Engine Oil 0.9 liter 0.75 liters at draining Fuel Tank Fuel Reserve Capacity 10.5 liters 1.4 liters 162-165 cm3, recommended Oil: ATF or an Equivalent 109 kg. 1970 720 1040 1230
Front fork Oil disassembly
79
ENGINE POWER Bore and stroke Compression ration Displacement Spark plug Spark Plug Gap Spark plug (7.2 Ps at 8,000rpm) 50x49.5mm 9.0:1 97.2cm2 0.6 – 0.7 mm IN:0. 05MM Ex: 0.05mm
80
BIBLIOGRAPHY
1. KOTLER PHILIP, MARKETING MANAGEMENT, 9th EDITION, PHI PUBLICATION, NEW DELHI, 2000. 2. KOTHARI, C.R. RESEARCH METHODOLOGY, 4th EDITION, PAL PUBLICATION, HYDERABAD, 1997. 3. GUPTA, S.P,STATISTICAL TECHNIQUES, 11th EDITION, S.CHAND & CO. PUBLICATION, CHENNAI, 1997. 4. SHARMA. D.D. MARKETING RESEARCH, 2nd EDITION, CHARMALATHA PUBLICATION, NEW DELHI, 1999. 5. SHOPIA SHANTHI, QUANTITATIVE METHODS IN BUSINESS, 3rd EDITION, CHARMALATHA PUBLICATION CHENNAI, 1999.
81
doc_464498614.doc