Customer Awareness and Effectiveness at Hero Honda PROJECT REPORT
Customer Awareness and Effectiveness at Hero Honda PROJECT REPORT
Customer Awareness and Effectiveness at Hero Honda PROJECT REPORT
INDEX
CONTENTS CHAPTER I Executive Summary Introduction Literature Review Statement Of The Problem Purpose Of The Study Scope Of The Study Objective Of The Study CHAPTER - II Organization Profile Organization Chart Sampling Marketing Research Design Data Collection Methods Measuring Tools CHAPTER - III Analysis & Interpretation Master Data Code Sheet Summary Findings Recommendation & Suggestions Conclusion CHAPTER - IV Questionnaire Bibliography PAGE NO.
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EXECUTIVE SUMMERY A project report containing the marketing research on Customer awareness and effectiveness of Hero Honda passport program HHPP is a is a program launched by the company to build long term relations with customers & to promote the sales of original spares & services. From authorized dealer only.
This project is partial fulfillment of requirement of MBA 2nd semester in Belgaum Institute of Management Studies, Belgaum.
It was an opportunity to learn the practical aspects of industries. I choose this topic concerned to company requirement. Hero Honda company is market leader in two-wheeler segment. And to maintain this relation they need strong relation with their customers. And achieve that company has launched this HHPP program.
Now company want to know the awareness & effectiveness of this program.
So they need to know, what is the awareness level & the customer response about Hero Honda passport program was needed I collated the information by a structured questionnaire that included requirements what the company needed & the questionnaire is attached in the appendix.
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The project consists of the topic called customer awareness & effectiveness of Hero Honda passport program at PATSON agencies.
Hero Honda company is worlds largest two wheeler motorcycle company. It is a joint venture company between Hero group & Honda company Japan it has highest record of selling two wheeler bikes ever.
I carried out my project in PATSON agencies who are the major dealers of Hero Honda company in Belgaum city.
The reason behind Hero Honda company to become worlds No.1 company are satisfied customers & dealers.
So to keep this position, company has to build good relation with customers. So company has launched Hero Honda passport program which is a customer relation program as well as dealers beneficial program.
It is a great opportunity for me to do a project for such a esteemed company. And the project was required for the partial fulfillment of MBA 2nd semester in Belgaum Institute of Management Studies, Belgaum.
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Also which helps the customers to update his knowledge & make better decisions.
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Focus on consumers: A commitment to the belief that sustained business success stems only from providing consumers with products services that consistently meet their purpose their demands & expectations.
Working together: Recognition that the greatest consumer value can be offered only when organizations, work internally & with their trading partners, to overcome barriers that erode efficiency & effectiveness.
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In this era of competitive world, the companies providing services & other tang able products to the customers has to become more customer attentive. For that companies has to maintain long & productive relation with the customers. Taking this into consideration Hero Honda has launched program to customers, i.e. Hero Honda passport program. Now company wants to know awareness level & effectiveness of that program.
To determine the awareness of Hero Honda passport program To get ideas for improvement from customers To know the attitude of the customers about HHPP To spares & services from authorized dealers
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The main purpose of the study is to know the customer awareness, effectiveness, 7 response towards HHPP. The study is conducted in Belgaum city. This study help the company to know the effectiveness of this program in Belgaum city at Patson agencies.
Research objectives: To know the awareness level of customer about Hero Honda passport program. To know the effectiveness of Hero Honda passport program. To know the attitude of customers 4) Progra INDUSTRY PROFILE Auto Industry Automobile industry has a mixed rally in terms of production performance. The overall growth for the year 2001-02 over the previous year was 13%. Passenger cars and MUVs together recorded a production growth of 7%. The growth of heavy vehicles was low at 3.5%. The LCV's however registered a negative growth during the year. To suggest the Ideas for improvement of Hero Honda Passport
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Type Public company BSE:HEROHONDA M Founded January 19, 1984 Location India Key people Brijmohan Lal Munjal (Chairman and Managing Director Industry Automotive Products Motorcycles, Scooters Revenue 7,536 crores Rs 2004-2005
Website www.herohonda.com
Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's top selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are underpowered and very fuel efficient
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Company Profile Hero, is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940s and turned into the worlds largest bicycle manufacturer today. Hero, is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make free wheel bicycle critical components and have diversified into different ventures like product design. The Hero Group philosophy is: To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity. The Hero group vision is to build long lasting relationships with everyone (customers, workers, dealers and vendors). The Hero Group has a passion for setting higher standards and Engineering Satisfaction is the prime motivation, way of life and work culture of the Group. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: We, at Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium. This alliance became one of the most successful joint
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An Environmentally and Socially, Aware Company At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a highquality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues.
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"We must do something for the community from whose land we generate our wealth." A famous quote of Mr.Brijmohan Lall Munjal, CMD.
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PATSON AGENCIES: AUTHOURIESED DEALEARS OF HERO HONDA MOTERCYCLES, BELGAUM STARTED :APRIL 1985
FOUNDER: BAPUSHAB PATIL & PRABHAKAR PATIL PRESENT CHAIR PERSONS: Mr. PRABHAKAR PATIL Mrs. CHANDARANI PATIL Mr. RAHUL .P. PATIL Mr. HARSH .P. PATIL TURNOVER OF 2005-2006: 17 CRORES SALES OF 2005-2006: 4730 MOTERCYCLES
ADDRESS :
PH:0831-2486674 ,2486385
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Chair person(partners)
General Manager
Accounts Department
Sales Department
Servicing Department
Sales Executives
Work Manager
Work supervisor
Head Mechanics
Mechanics
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Work Manager
Washing Supervisor
Delivery Supervisor
Warranty In charge
Computer Operator
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Sales Department Service & repair Department Delivery Department RTO work Department Spare part Department Account & Billing Department SALES DEPARTMENT: In this department all the matters regarding sales& purchases are handled. Here sales executive meet the customer & brief them with the all the details required information . Here sales executive gives quotations, brief description about the required bike model. SERVICE & REPAIR DEPARTMENT
Work Manager
Work Supervisor
M/C
M/C
M/C
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RTO work department: In this department all the matters regarding issuing of temporary registration, temporary insurance, temporary passing of new bikes are handled. All the necessary paper work required for temporary passing is handled in this department. Spare part department: In this department spare part required by mechanics are stored. And issued on requirement of the mechanics when necessary. In this department large stock of Hero Honda spare part are stored to avoid customer inconvenience. Account & Billing department: In this department the matters regarding all accounts are registered i.e. all day-today transactions & final report is produced at the end of the financial year to the management.
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What is the Hero Honda Passport Programme? The Hero Honda Passport Programme is a Customer Relationship Programme' instituted specially for customer and dealers. Upon enrolling for the Programme, customer obtain a Hero Honda Passport, which entitles customer to a host of benefits, privileges and exclusive rewards. What's more, customer also become eligible for the Hero Honda 'Winners of the Month', which could win you a Hero Honda Splendor+, or a cash prize of Rs. 40.000! Who is eligible for the Hero Honda Passport? Any Hero Honda motorcycle owner or user is eligible for the Hero Honda Passport. However, it is the actual user of the motorcycle, who derives maximum benefits from it.
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Hero Honda Motors Limited has in store for you including attractive gifts, special invitations and discounts. The Hero Honda Passport is valid for a period of 3 years. Benefits of owning a Hero Honda passport Some of 1 he benefits are: Instant Benefits - A one-year or three year Free Accident. Insurance cover worth Rs 11 lakh. - Opportunity to participate in a national draw and win Rs 40,000 in cash or Splendor+ Bike Related Benefits
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How to use the Hero Honda Passport? You need to carry your Hero Honda Passport with you when you visit a Hero Honda authorized dealership/workshop. Every time you do a transaction at a Hero Honda showroom /workshop, the dealer would reward points into your passport. You are eligible to accumulate points, against purchase of spares, accessories, service and by referring friends to purchase a Hero Honda motorcycle. You can win several gifts as you accumulate points swiftly. Also, your points do not become zero after a gift collection and you can keep collecting gifts as you reach a particular milestone.
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MARKETING: Marketing is a social Process by which individuals and group obtain what they need want through creating offering and freely exchanging products and services of values with others.
Accordingly to Peter Druker there will always, one can assume be need for some sealing. But the aim, of marking is to make selling superfluous. The aim of marketing is to know and understand the customer so we that the products or services fits him and sells it. Ideally marketing should result on a customer who is ready to but all that should be needed then is to make produce or service available.
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MARKETING INFORMATION SYSTEM: Every firm must organize a rich flow of information to its marketing managers competitive company study their manager information needs and design marketing information system to meets their needs.
A MIS consists of people, equipment and procedures together, sort, analyze, evaluate and distribute needed timely and accurate information to the marketing decision makers.
The information is developed through internal company records, marketing Intelligence activities, marketing research and marketing decision support analysis.
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In essence, a brand identifies the seller or maker; it can be a name, trade ark, log or the other symbol, under trademark law, the seller is granted exclusive fights to the use of brand name in perpetuity.
A brand is essentially a seller promise to deliver a specific set of features, benefits and service consistently to the buyers. The best brands convey a warranty quality, but a brand is an even more complex symbol. It can convey up to six levels of meaning. Attributes: a brand brings to mind certain attributes Benefits: attributes must be translated into functional and emotional. The
attribute durable could translate into the functional benefit. Values: The brand also says something about the producers value. Culture: The brand may represent or certain culture like Mercedes
represent Greman culture, organized efficient, high quality. Personality : the brand can project a certain personality. User : the brand suggest the kind of customers who buys or uses the product.
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Then there are brands that enjoy high degree of brand preference finally there are brands that command a high degree of loyalty.
According to Aaker, to the degree of brand name recognition perceived brand quality, strong mental and emotional associations and other assets such as patents, trade marks and channel relationship.
A brand name needs to be carefully managed so that its equity does not depreciate . This requires maintaining or improving brand awareness., perceived quality and functionality and positives associations . These tasks require continuing in R & D investments, skill full advertisement and excellent trade and consumer service.
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Brand pull is nothing but pulling effect by consumer for particular product. It means that the customer demand for particular brand. The customers will not refer to buy any other brand it is not available with dealers. Brand pull is very important for particular products to become successful in the market. It sores the acceptance the by the customer for a particular branded products. For attracting customers the product should fulfill the needs and wants of the customers. That is the product should give satisfaction the customer.
BRAND PUSH : Brand push is another strategy. Brand push is done mostly by dealers if particular is not selling or else if the customer has no choice to buy which brand, then the dealer will suggest to buy the particular brand and try to convince the customer to purchase, that brand is termed as brand push service.
CUSTOMER DRIVES 3 KINDS SERVICES: Before sales service i.e. providing needed information to the buyer about the product service at the time of sales : when selling process takes place, the company should take care about the quick and delivery, installation etc.
After sales service when sales have been some to the customer, the company should think the customer is part of the family. So attending any emergency repair or any kind of service required should be met immediately so as to retain the customer
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DISTRICUTION EFECIENCY: Management needs to search for distribution economies in inventory control, warehouse locations and transportations modes. One problems that distribution efficiency declines when the company experiences the strong sales increases., it may causes in meeting delivery dates. This leads customers to badmouth the company eventually ales fall. MEANING OF THE CUSTOMER SATISFACTION: Whether the buyer is satisfied after purchase depends on the offers performance in relation to the buyers expectation in general;
Satisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his/her expectations.
As this definition makes clear, satisfaction is a faction of perceived performance and expectations. If the performance falls short of expectation, the customer dissatisfied, highly satisfied, delighted.
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Buying experiments friends and associates advice and market and competitors information and promises. If marketer raises expectations too high the buying is likely to be disappointed.
A customer decision to be loyal or to default is the sum of many small encounters with the company, consulting firms etc. corporation says that in order to convert all the small encounters to customer loyalty, companies need to create a Brand Customer Experience
Customer oriented thinking requires the company to define customer needs from the customer point of view not from its own point of view. Every product involves trade offs,, and management can not known what these are without talking to and researching customers. Thus a car buyer would like a high performance car that never breaks down that is safe, attractively styled and chief. Since, all of them virtues cannot be confined in one carry the car designer must make hard chooses not on what pleases them but rather on
what customer prefer are expect. The aim, after all, is to make a sale through meeting the customers need.
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A customer oriented company would track its customer satisfaction level each period and set improvement goals. If they manage to increase customer satisfaction and loyalty, it does not have top worry even if its profits are down in a particular year. It is on the right track satisfaction keeps falling it is on the working track. Profit would go up or down in a particular year for many reason, inclosing rising controls falling prices, major new investments and soon. But, the ultimate sign of a healthy company is that its customer satisfaction index is high an d keeps rising companies future profits.
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Marketing research specifies the information required to address these issues designs the method for collection information manages and implementing the data collection process analyze the result and communicates the findings and their implication.
OBJECTIVES OF THE MARKETING RESEARCH: Some of the research objectives are as follows, To gain familiarity with a phenomenon, event, product or service. To determine the frequency with something occurs or with it is associated with something else. To test the hypothesis of casual relationship between variables. To understand the requirement of market and formulate strategies as per the requirements.
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And is the subset of the population. Concerned to my project, The sample represented is , as sample size of 125 people in number of the sample is consisting of the customers of hero Honda within Belgaum city., Stages in selection of a sample : Define the target population. Specify the sampling frame Specify sampling method Determine sample size. Specify sampling plan. Select the sample.
Define the target population concerned to my project : I have selected the target population as, the customers of Hero Honda bikes within the Belgaum city.
Select the sampling frame: Concerned to my project , the sampling frame held in Belgaum city, i.e. Hero Honda outlet, (Patson Agencies) and major places of Belgaum city, i.e. RPD cross, Khade Bazar, Fort Road.
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Specify sampling method. Concerned to my project, I am using the probability sampling method, where there is a probability of selecting any customer of Hero Honda Patson agencies is known i.e. simple random sample.
Determination of the sample size Concerned to my research sample size is selected is 125 i.e. value of the information records the cast.
Specify the sampling plan Sampling plan is done according to the stages in the sampling process. Select the sample It includes the actual selection of the sample elements (already listed), & field work (as I am using the questionnaire for the survey)
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Step 1: Define the research problem To know the awareness level & effectiveness & response towards HHPP.
Management problem / opportunity clarification Hero Honda company wants to make HHPP more effective, so company want to know the present performance of this program.
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TOTAL
Respondent 55 38 10 22 125
50 40 30 20 10 0
Interpretation: From the above graph it reveals that 45% of the respondents are splendor Users ,30% are passion users ,8% are CBZ users & 18% of respondents are users of other Hero Honda models.
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Percentage(% ) 87 13
PERSENTAGE(%)
Interpretation: from the above graph it reveals that from 125 respondent 87% of the respondent were aware of the HHPP & 13% are not aware of HHPP.
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Respondent 98 10 108
Percentage %
91 8
MEMBERSHIP
100 80 60 40 20 0 91 8 YES NO PERSENTAGE(%)
Interpretation : From the above graph it reveals that from 108 respondents 91% of the respondents were the members of HHPP & 8% of the respondents were not the member of HHPP.
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Respondent 63 9 26 98
Interpretation: Form the above graph it reveals that from 98 respondent 64% of the respondents were aware of the advantages of Hero Honda Passport Program, 10% were not aware of the Hero Honda Passport Program & 26% were aware but not completely.
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Respondent 21 77 98
PLANS UNDERTAKEN
22% 125 175 78%
Interpretation: From the above graph it reveals that out of 98 respondent 22% of the respondents had registered under Rs. 125 plan program & 78% of respondents had registered under Rs. 175 plan program.
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gifts received Zero < three times four times > four times
Respondent 7 22 27 42
Percentage(%) 7 23 27 43
GIFTS RECEIVED
50 40 30 20 10 0 7 ZERO <3TIMES 4TIMES >4TIMES 23 27 PERSENTAGE(%) 43
Interpretation: From the above graph it reveals that out of 98 respondent 07% of the respondents have not received the gifts, 23% have received the gifts for <3 times, 27% of the respondents have received the gift for 4 times & 43% of the respondents have received gifts for more then 4 times.
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Interpretation: From the above graph it reveals that out of 98 respondent 12% of the respondents were strongly satisfied with the advantages for the purchase of spare parts and services, 36% of the respondents were just satisfied with the advantages, 17% were neither satisfied nor dissatisfied, 23% were not satisfied with the advantages and 12% were strongly dissatisfied with the advantages of the program for their purchases of spare and services from authorized dealer.
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Option yes no
Respondent 80 18
Percentage(%) 81 19
Interpretation: From the above graph it reveals that out of 98 respondent 81% of the respondents were aware of the insurance scheme & 19% of the respondents were not aware of the insurance scheme in Hero Honda Passport Program.
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80 60 40 20 0
80
8 YES NO
12 NOT EXACTLY
PERSENTAGE(%)
Interpretation: From the above graph it reveals that out of 98 respondent 80% of the respondents feel program works according to its promises 8% of respondents program does not work according to its promises and 12% of respondent feel program works but not exactly according to its promises.
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Influence level Strongly influence Influence Neither influence nor not influence Not influence Strongly not influence
Respondent 13 46 23 16 0
Percentage(%) 14 46 23 17 0
23 46
STRONGLI DIS Interpretation: From the above graph it reveals that out of INFULENCE14% of the 98 respondent
respondents are strongly influenced by this program in their purchase of spares and services, 46% of respondent are just influenced by this program, 23% of respondent are neither influenced nor not influenced and 17% of respondents are strongly not influenced by the program in their purchase of spare parts and services.
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Respondent 26 48 10 4 0
Percentage (%) 26 49 11 4 0
11
4 0
26
49
WORST
Interpretation: From the above graph it reveals that out of 98 respondent 26% of the respondents said program is excellent, 49% of respondents said program is good, 11% of respondents said program is neither good nor bad and 4% of respondents said program is bad.
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Respondent 74 11 13
percentage % 75 12 13
80 60 40 20 0
75
12 YES NO
13 SOME WHAT
PERSENTAGE(% )
Interpretation: From the above graph it reveals that out of 98 respondent 74% of the respondents are satisfied with the PATSON AGENCIES service provided in Hero Honda Passport Program and 12% of respondents are not satisfied with the service proved by the PATSON AGENCIES and 13% of respondents are somewhat satisfied with the service provided by PATSON AGENCIES in Hero Honda Passport Program.
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Satisfaction level Strongly satisfied Satisfied Neither Satisfied Nor Dissatisfied Not satisfied Strongly dissatisfied
Respondent 11 48 31 8 0
Percentage (%) 12 48 32 8 0
SATISFACTION LEVEL
STRONGLY SATISFIED 8% 0% 32% 48% NEITHER SATISFIED NOR DISSATISFIED NOT SATISFIED STRONGLY DISSATISFIED
Interpretation: From the above graph it reveals that out of 98 respondent 12% of the respondents are strongly satisfied with the Hero Honda Passport Program, 48% just satisfied with the program, 32% of respondents are neither satisfied nor dissatisfied with the program and 8% of the respondents are not satisfied with the Hero Honda Passport Program.
12%
SATISFIED
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15: Reasons behind aware but not being the member of the Hero Honda Passport Program. Respondents were not interested in Hero Honda Passport Program. Respondents bikes were old so they were not interested in Hero Honda Passport Program.
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4. Materials Books.
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