CHAPTER I

INTRODUCTION

1
 INTRODUCTION

Customer Relationship Management entails all aspects of interaction a

company has with its customer, whether it is sales or service related; it starts with the
foundation of relationship market Hero Honda. CRM is a systematic approach
towards us Hero MotoCorp Ltd information and on go Hero MotoCorp Ltd dialogue
to built long los Hero MotoCorp Ltd mutually beneficial customer relationship. The
use of CRM technology forms the crucial front-end of any e-business strategy,
essentially CRM has emerged as convivial weapon in the hands of the industry
laggards as well as leaders to cascade the business suites; the only touch point which
is formulate Hero MotoCorp Ltd this base is the awareness amongst the corporatists
to suffice the customers already available to the companies to large extent.

In today’s first-paced competitive business environment it’s more important

than ever to create and maintain long-lost Hero MotoCorp Ltd business relationships.

Today, Customer Relationship Management (CRM) manages business process

span Hero MotoCorp Ltd sales, support, and markets Hero Honda, create Hero
MotoCorp Ltd effective customer interactions. Given the purpose of CRM, the
functionality is straightforward, and the benefits of successful deployments clearly
generate value and profitability for any company. Grate CRM solutions need to
encourage users to interact with the application as well as be in-tune with the business
and IT cost-save Hero MotoCorp Ltd needs.

“For the modern-day CRM to be world class it needs to be revolutionary in

market incursion and evolutionary in technological up gradation.”
Today the major business focus is towards endow Hero MotoCorp Ltd value addition
to the sales cycle, and customer retention rather than construct Hero MotoCorp Ltd a
new customer base which is costlier and also an uncertain chase from business
perspective. The basic philosophy behind CRM is that a company’s relationship with
the customer would be the biggest asset in the long-run.

2
 It is now vital for CRM vendors to develop a sound understand Hero
MotoCorp Ltdof their target organizations customer and deliver them with solutions
which help in achieve Hero MotoCorp Ltd long-term business relations with their
customers. Vendors must also build long-term customer relationship management
strategies with the end-user organizations to assure a series of deployments, and hence
ensure Hero MotoCorp Ltd a regular revenue stream for themselves as well as their
customers.

Evolution of CRM – A Diagrammatic Representation

Before implement Hero MotoCorp Ltd (Formally Hero Honda Limited)

any Customer Relationship Management solution in the organization there are many
questions which need a comprehensive explanation from the user’s point of view.
o What is the added value preposition of the CRM to the organization?
o What would be the environment under which the implementation done?
o How would the synergies be reflecting Hero MotoCorp Ltd (Formally
Hero Honda Limited) in the processes of the company?

These are mere stencils of the holistic scenario prevalent right now, and are to a great
extent a factor which harms the opportunities of long-term survival for any CRM
vendor.

3
NEED FOR THE STUDY

Organizations have Hero MotoCorp Ltd (Formally Hero Honda

Limited)be competitive environment with relationship management of customer and
they are attracting Hero MotoCorp Ltd (Formally Hero Honda Limited) the
customer with some effective sale promotions. But some organizations need to
evaluate the purpose, utility, effectiveness of customer satisfaction. They are fails to
evaluate this customer relationship management. So these studies has been undertaken
to assess the customer relationship management in the organization.

OBJECTIVES OF THE STUDY

The broad objective is to study the perception of “CUSTOMER RELATIONSHIP

MANAGEMENT WITH REFERENCE TO Hero MotoCorp Ltd (Formally Hero
Honda Limited)”.

 To find out the factors that influences the buy Hero MotoCorp Ltd
(Formally Hero Honda Limited)decision of a Hero MotoCorp Ltd motors.

 To identify and study the problems faced by the consumers of Hero

MotoCorp Ltd motors.

 To study the satisfaction level of exist Hero MotoCorp Ltd consumer of

Hero MotoCorp Ltd.

 To assess the role of brand image in the Purchas Hero MotoCorp Ltd
decision of Hero MotoCorp Ltd.

 To offer conclusions and suggestions.

4
RESEARCH METHAODOLOGY

Research design:

“Research design is the plan, structure. And strategy of investigation

conceived so as to obtain answers to research questions and to control variance”
KERLHERO
HONDAER
The research designs are both descriptive and exploratory in nature. The
objectives of this study is to answer the “who, what, when, where and How “of the
subject under investigation.

SAMPLEHERO MOTOCORP LTDPLAN AND SIZE FOR CONSUMERS:

Sample Hero MotoCorp Ltd plays a vital role in decide Hero MotoCorp
Ltd the quality of any project while do Hero MotoCorp Ltd this survey it is felt to
conduct the survey for consumers under convenient sample Hero MotoCorp Ltd
method. Convenience sample Hero MotoCorp Ltd was adopted both for
consumers where the sample unites are chosen primarily on the basis of the
convenience of the investigators. The sample size was determined as 100
consumers

SAMPLE TERRITORY:
The survey has been conducted and restricted to the city of
Hyderabad in ANDRA PRADESH ‘

SOURCE OF DATA:
Data, which is to be used for the project, has come both from
primary sources as well as secondary sources.

5
PRIMARY DATA SOURCES:

The crux of the report is based on the information collected from the
respondents with the help of questionnaires. The primary source of information
have been consumers who have filled up the questionnaire
Consumer who interviewed separately and the respondents jotted down in
the questionnaire for the purpose.

SECONDARY DATA SOURCES:

Information has also been borrow from both internal sources such as company
records and external sources like journal, magazines and book on market Hero
MotoCorp Ltd research

DATA COLLECTION METHOD:

The survey method was employed for primary data collection. The medium
of date collection was through personal interviews. Where the respondents were
questioned in face-to-face meet Hero MotoCorp Ltd the consumers were met
either in their homes (or) place of work. Some of respondents were questioned
through telephones,

TOOLS FOR DATA COLLECTION

The data was collected through structured questionnaire. Questions can be

categorized into multi-choice and open-ended questions. Questionnaires were
designed for consumers. Care was taken to ensure that the questions framed were
compatible with research objectives.

Firstly, by take Hero MotoCorp Ltd the sample questionnaires, a pilot survey
have been conducted among the various sections of the people. Word Hero
MotoCorp Ltd and sequence Hero MotoCorp Ltd of questions, choice of
respondents, information sought and instruments clarity as a whole were tested.

6
 After take Hero MotoCorp Ltd the exactness and correctness the final version of
the questionnaire has been drafted and was taken up for field survey purposes.

STASTICAL TOOLS:

In the context of the present study, the follow Hero MotoCorp Ltd statistical
tools have been used.

PERCENTAGES:

Percentages are used to describe relationships, since they reduce every Hero
MotoCorp Ltd to a common base and there by allow mean Hero MotoCorp Ltd
full comparisons to be made.

PIE DIAGRAM/BAR DIAGRAM:

There are pictorial representations of statistical data with several subdivisions

in a circular from and column from respectively.

METHOD OF WEIGHTED AVERAGE FOR RANKS:

This method is used to complete the weighted averages for the rank to
determine which factor is the most preferred one. The ranks are taken as the
variable and the numbers of people are the weights for each rank. From the
weighted averages the most preferred factor is chosen as the one with the
minimum average. The next average selects the rank and the procedure continues
for other ranks also.

RESEARCH OBJECTIVE

 To study about the Hero MotoCorp Ltd services.

 To study about the Hero MotoCorp Ltd products.

7
 To know about why the customer like to Hero MotoCorp Ltd MOTORS.

 Are they happy with the service?

 To know about what customer needs and what the company is provide Hero Honda.

 To know about how they fulfil the needs of the customers.

SCOPE OF THE STUDY:

The scope is confirmed only to examine the “Customer relationship management with
reference to HERO MOTOCORP LTDMOTORS” and to find possible remedies to
counteract their competition.

LIMITATIONS

 As the time given for the completion of the project was limited.

 The survey was restricted to Hyderabad and Secunderabad only.

 They may be few opinions, which might have been missed out.

 The accuracy of the analysis and conclusion drawn entirely depends upon the

reliability of the information provided by the employees.

 Sincere efforts were made to cover maximum departments of the employees,

but the study may not fully reflect the entire opinion of the employees.

 In the fast moving/changing employees behaviour, name new and better things

may emerge in the near future, which cannot be safeguard in this report.

8
 CHAPTER II
INDUSTRY& COMPANY PROFILE

9
Introduction
The automobile industry is one of India’s most vibrant and growing industries. This
industry accounts for 22 per cent of the country's manufacturing gross domestic
product (GDP). The auto sector is one of the biggest job creators, both directly and
indirectly. It is estimated that every job created in an auto company leads to three to
five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many
global automakers. India is presently the world's third largest exporter of two-
wheelers after China and Japan. According to a report by Standard Chartered Bank,
India is likely to overtake Thailand in global auto-export market share by the year
2020.
The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the government’s backing,
and trends in the international scenario such as the decline in prices of natural rubber,
the Indian automobile industry is slated to witness some major growth.

Market size
The cumulative foreign direct investment (FDI) inflows into the Indian automobile
industry during the period April 2000 – August 2014 was recorded at US$ 10,119.68
million, as per data by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM)
showed that 137,873 passenger cars were sold in July 2014 compared to 131,257 units
during the corresponding month of 2013. Among the auto makers, Maruti Suzuki,
Hyundai Motor India and Honda Cars India emerged the top three gainers with sales
growth of 15.45 per cent, 12 per cent and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of
increased demands from the urban market. Total sales across different vehicle
segments grew 12 per cent year on year (y-o-y) to 1,586,123 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per
cent of the total two-wheeler market from just 8 per cent a decade back. The ever-
rising demand for scooters, which has far outstripped supply has prompted Honda to
set up its first dedicated scooter plant in Ahmedabad.

10
Tractor sales in the country is expected to grow at a compound annual growth rate
(CAGR) of 8–9 per cent in the next five years making India a high-potential market
for many international brands.

Investments
To match production with demand, many auto makers have started to invest heavily in
various segments in the industry in the last few months. Some of the major
investments and developments in the automobile sector in India are as follows:
 Ashok Leyland plans to invest Rs 450–500 crore (US$ 73.54–81.71 million)
in India, by way of capital expenditure (capex) and investment during FY15.
The company is required to manage Rs 6,000 crore (US$ 980.56 million) of
assets in seven locations across the world, for which maintenance capex is
needed.

 Honda Motors plans to set up the world's largest scooter plant in Gujarat to
roll out 1.2 million units annually and achieve leadership position in the Indian
two-wheeler market. The company plans to spend around Rs 1,100 crores
(US$ 179.76 million) on the new plant in Ahmedabad, and expand its range
with a few more offerings.

 Yamaha Motor Co has restructured its business in India. Now, Yamaha Motor
India (YMI) will take care of its India operations. “The restructuring is part of
Yamaha’s mid-term plan aimed at improving organisational efficiency,” as per
Mr Hiroyuki Suzuki, Chief Executive and Managing Director. YMI would be
responsible for corporate planning and strategy, business planning and
business expansion, quality control, and regional control of Yamaha India
Business.

 Tata Motors plans to use the 'hub-and-spoke' model in which India will be the
key manufacturing base while it will have mini-hubs in overseas markets. The
company also plans to set up mini hubs in potential markets like Africa,
Middle-East and South East Asia.

 Hero Cycles through its unit OPM Global has acquired a majority stake in
German bicycle company Mitteldeutsche Fahrradwerke AG (MIFA) for €15
million (US$ 19.11 million).

11
  The company plans to invest an additional €4million (US$ 5.09 million) as
capital expenses in restructuring the acquired company.

Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route. To boost manufacturing, the
government had lowered excise duty on small cars, motorcycles, scooters and
commercial vehicles to eight per cent from 12 per cent, on sports utility vehicles to 24
per cent from 30 per cent, on mid-segment cars to 20 per cent from 24 per cent and on
large-segment cars to 24 per cent from 27 per cent.
The government’s decision to resolve VAT disputes has also resulted in the top Indian
auto makers namely, Volkswagen, Bajaj Auto, Mahindra & Mahindra and Tata
Motors announcing an investment of around Rs 11,500 crore (US$ 1.87 billion) in
Maharashtra.
The Automobile Mission Plan for the period 2006–2016, designed by the government
is aimed at accelerating and sustaining growth in this sector. Also, the well-
established Regulatory Framework under the Ministry of Shipping, Road Transport
and Highways, plays a part in providing a boost to this sector.
The Government of India-appointed SIAM and Automotive Components
Manufacturers Association (ACMA) are responsible in working for the development
of the Indian automobile industry.

Road Ahead
The future of the auto industry depends on the positive sentiments and the demand for
vehicles in the market. With the festival season coming up, the Indian auto sector will
see a rise in demand which is expected to bring in major growth. An auto dealer
survey by firm UBS suggested that the Indian auto industry, riding on trends like the
upcoming festival season and decline in fuel price, will observe a 12 per cent y-o-y
growth in FY15.
Also, keeping up with international trends, there is expected to be a surge in the
number of hybrid vehicles in the Indian auto sector in the years to come.

12
The growth story for the Indian automobile industry in 2014 rode on the two-wheeler
segment and not on passenger cars or commercial vehicles, as high interest rates and a
stuttering manufacturing industry kept a check on demand.

The year also saw Competition Commission of India (CCI) levying a penalty of
Rs.2,544.65 crore ($415) on 14 car makers for their restrictive trade practices by
preventing independent repairers coming into the market. Some of the leading car
makers also had to recall some models over defective components.

When other segments like passenger cars and commercial vehicles logged negative
growth, the two-wheeler makers registered around 13 percent growth between
January and October. Riding on the two-wheeler sector's growth, the automotive
industry grew 9.8 percent by volume year-on-year (YoY) between January and
October.

"The two-wheeler segment is the only one that has clocked positive growth at 12.9
percent YoY (year-on-year) to reach sales of nearly 13.5 million units by October.
This can be attributed to the low cost of two wheelers

in India," Vijay Kakade, vice president for automotive and transportation practice at
Frost & Sullivan, told IANS.

13
He said the light commercial vehicle (LCV) segment has been the worst hit, with
sales reducing to approximately 330,000 units -- an 18.9 percent YoY fall over 2013.

"The passenger car, medium and heavy commercial vehicle segments contracted by
0.8 and 6.5 percent respectively during the period, compared to 2013. The reduction
in sales can be attributed to the slowdown and the high interest rates set by the RBI
(Reserve Bank of India) reducing the availability of finance options to the public,"
Kakade added.

"These segments have shown positive signs over the past few months, which is
expected to lead to growth in the next year."

"The year 2014 has been a year of stagnation, which is a positive sign as the decline
has stopped. The industry has shown signs of growth, albeit slower than expected,
over the past few months," Kakade remarked.
P. Balendran, vice president, General Motors India, had similar views to share with
IANS: "Of late, we have seen some movements in new entries driven by novelty
factors and some select manufacturers have been getting the benefits too."
He said the market has not shown any movement forward, despite the excise duty
reduction, while the customer sentiment has not picked up due to sticky interest rates,
which remain at high levels.
"Although fuel prices have started coming down significantly, the enquiry levels at
showrooms have come down and conversions are not taking place at all. The sales of
diesel vehicles are also tapering off because of the narrowing price gap vis-a-vis
petrol," Balendran added.
Expecting the government to continue with a lower excise duty regime for small/mid-
sized/big cars and sports utility vehicles (SUV) till March 2015, Balendran said the
rates should be continued till the Goods and Services Tax ( GST) is introduced --
aiding the turnaround of the auto sector.

Terming 2014 a mixed bag for the automobile industry, Sumit Sawhney, chief
executive and managing director of Renault India, told that while there has been a sea
14
change in the consumer sentiment with a gradually improving economic climate in the
country, the optimism has still to translate into sustained sales growth.

"The industry is looking forward to the budget for pro-business policies to reignite the
automobile industry in India."

Highlights of India's automobile industry 2014:

* Overall growth was 9.8 percent by volume year-on-year (YoY) between January
and October.
* Two-wheeler sector grew 12.9 percent.
* Passenger car, medium and heavy commercial vehicle segments contracted by 0.8
and 6.5 till October
* LCV segment worst hit, with sales falling 18.9 percent YoY fall over 2013 till
October
* Excise duty reduction on automobiles
* Competition Commission of India (CCI) fines 14 car-makers Rs.2,544.65 crores for
restrictive trade practices.

Auto manufacturers have been trying to cope with economical rough patch in last two
years. Trying to boost sales and implementing cost effective schemes just wasn’t
enough. They also had to cut many of their employees loose to stay somewhat
balanced, in some cases. On a fashionable note, senior employees were asked to take
voluntary retirement (not sure what ‘voluntary’ is doing in that sentence).

Tata Motors apart from giving customers attractive offers, gave 600 of their
employees early retirement offers, last month. Ashok Leyland too offered 500 of their
employees with irresistible retirement schemes, last year (pun intended).

Sales of Cars, SUVs, Vans, pick-ups, and entire commercial vehicle segment went
south, with passenger vehicle market encountering first decline in the decade.

15
But what saved the overall scenario was the two-wheeler market. It took 7.31% hike
with motorcycle sales going 3.91% up and scooter sales riding 23% north. Export
sales figures also contributed to somewhat saving the year with rise of 7.21%.

The downtrend left auto manufacturers with piled up inventory and stagnation. The
interim budget announced in February, gave a minor boost as all vehicles prices were
reduced marginally, but it hasn’t exactly helped boost sales yet. Automakers are
expecting aid from the government’s new budget by way of further tax cuts.

Sales figures of March 2014 shows 12.83% overall growth also by means of increased
two-wheeler sales. Commercial Vehicles have further dipped compared to March
2013 and passenger cars stagnating below the graph. However, overall production has
increased by 9.95% comparing March figures of both years, suggesting auto makers’
confidence in ongoing fiscal to make better.

Launch of new A segment compact cars by various auto majors seems to be helpful in
this economy, for customers as well as value chain entities. Maruti Suzuki finished
top on podium with 42% share in overall car sales, followed by Hyundai with 15%
share.

Society of Indian Automobile Manufacturers (SIAM) expects a 6% growth over in the

fiscal 2014-15, with boost in manufacturing sector, new investment and fresh
capacities in the industry. Vikram Kirloskar, president of SIAM says, “Whichever
government comes in…I am looking for stability in excise duty and some reduction in
taxes. We are an over-taxed industry.”

16
17
COMPANY PROFILE

18
 CORPORATE PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in
terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to
maintain this position till date.

Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its two wheelers. Hero MotoCorp Ltd., company's
new identity, reflects its commitment towards providing world class mobility
solutions with renewed focus on expanding company's footprint in the global arena.

Mission
Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers'
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The company will
provide an engaging environment for its people to perform to their true potential. It
will continue its focus on value creation and enduring relationships with its partners.

Strategy
Hero MotoCorp’s key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and shareholder delight.

19
Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are
located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.

Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment
friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be
technology pioneer. It became the first company to launch the Fuel Injection (FI)
technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Distribution
The Company's growth in the two wheeler market in India is the result of an intrinsic
ability to increase reach in new geographies and growth markets. Hero MotoCorp’s
extensive sales and service network now spans over to 6000 customer touch points.
These comprise a mix of authorized dealerships, service & spare parts outlets and
dealer-appointed outlets across the country.

Brand
The new Hero is rising and is poised to shine on the global arena. Company's new
identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on
mobility and technology and creating global footprint. Building and promoting new
brand identity will be central to all its initiatives, utilizing every opportunity and
leveraging its strong presence across sports, entertainment and ground-level activation

HERO'S MANDATE

Hero is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting
edge technology from Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way
towards reinforcing its leadership status.

20
BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. M. Damodaran Non-executive & Independent

Director

15. Mr. Ravi Nath Non-executive & Independent

Director

16. Dr. Anand C. Burman Non-executive & Independent

Director

21
BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company
and the $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian
Industry (CII), Society of Indian Automobile Manufacturers (SIAM) and was a
Member of the Board of the Country's Central Bank (Reserve Bank of India). In
recognition of his contribution to industry, Mr. Munjal was conferred the Padma
Bhushan Award by the Union Government.

Mr. Brijmohan Lall Munjal is currently on the board of the following companies:
No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed

1984 Hero Honda Motors Ltd. incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder

22
 Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001
by DNV Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of
founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by
DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh
and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar
year in a row (2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced

23
2004 New motorcycle model - "Ambition 135" introduced
Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

15 million production milestone achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched

24
2009 Hunk' (Limited Edition) launched
Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
2010 Silver jubilee celebrations

New model Splendor Pro launched

2011
Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme,
Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year

2012 Migration of all products to Brand Hero.

Launch of Impulse, Maestro and Ignitor.

Debut in the AMA Superbike Racing in the US.

Strategic partnership with Erik Buell Racing (EBR) of USA.

2013 Neemrana Plant Foundation Stone laid.

Global Parts Centre Foundation Stone laid.

50 Million cumulative 2 wheelers production.

2014 New plant establishment in Gujarat

New R&D team for Indian roads

New lanch of XTREME

25
PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

2014  Green Pioneer leader in india-2014

 Green Supply Chain Management Program-2014.

 Green Pioneer Award - 2013

 "Business Leader of the Year" Award by Hon'ble President of India,
2013 Shri. Pranab Mukherjee, at the AlMA Managing India Awards 2013 on
April 11, 2013 (Conferred on Mr. Pawan Munjal)
 "Business Leader of the Year" Award in the Auto (Two Wheelers)
category by Deputy Chairman of the Planning Commission Mr. Montek
Singh Ahluwalia, at the NDTV Business Leadership Awards 2013
(Conferred on Mr. Pawan Munjal)
 CFO of the year Award (Conferred on Mr. Ravi Sud)

2012  Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business

Leadership Awards 2012 (Conferred upon Mr. Pawan Munjal)
 Best value for Money Bike Maker and Best Advertising in Two Wheelers
Category at the Auto India Best Brand Awards 2012
 Digital Advertiser of the year at the Indian Digital Media Awards (IDMA)
2012
 Three awards (Launch Event of the year, Rural Engagement Progamme and
Live Patron Award for Marketing Excellence) at the WOW Awards organised
by EventFAQs
Two-wheeler Manufacturer of the Year award by Bike India magazine.
Adjudged the "Bike Manufacturer of the Year" at the Economic Times
ZigWheels Car and Bike Awards.

2011 - CNBC Awaaz - Storyboard special commendation for "Effective rebranding

of a new corporate entity" by CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC
Awaaz Consumer Awards
- Colloquy Loyalty Awards "Innovation in Loyalty Marketing International
2011" for Hero GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty" by the
Promotion Marketing Award of Asia Order of Merit for Hero GoodLife
- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity
"Most Trusted Brand" 2011 survey
2010

26
 Company of the Year awarded by Economic Times Awards for Corporate
Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

 Two-wheeler Manufacturer of the Year

 CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards
2009

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards
2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun
& Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles'
category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the
Coveted "NDTV Profit Business Leadership Award 2008"
TopGear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice
Award” to Hunk in Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty
Awards - “Customer and Brand Loyalty Award” in Automobile (two-wheeler)
sector
Asian Retail Congress Award for Retail Excellence (Strategies and Solutions
of business innovation and transformation) - Best Customer Loyalty Program in
Automobile category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

27
  No.1 executive motorcycle Splendor NXG
 No.1 standard motorcycle CD Deluxe
 No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following
category:
 Overall "Bike of the Year" - CBZ X-treme
 "Bike of the Year" - CBZ X-treme (up to 150 cc category)
 "Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.
Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer
Awards 2006.

2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
One of the 8 Indian companies to enter the Forbes top 200 list of world’s most
reputed companies.
No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction
Awards 2006:
 Splendor Plus (Executive)
 CD Deluxe (Entry)
 Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand
Equity Survey 2006.
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
Wheeler Company).
Top Indian company in the Automobile - Two Wheeler sector by Dun &
Bradstreet - American Express Corporate Awards 2006.

28
 Hero Honda Splendor rated as India's most preferred two-wheeler brand at the
Awaaz Consumer Awards 2006.
Certificate of Export Excellence for outstanding export performance during
2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by
Engineering Export

Promotion Council.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships,

especially ones developed at the grassroots. The Company believes it has managed to
bring an economically and socially backward region in Dharuhera, Haryana, into the
national economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along
the Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean
water, and education facilities for both adults and children-now nurtures a vibrant,
educated and healthy community.

The Foundation has adopted various villages located within vicinity of the Hero
Honda factory at Dharuhera for integrated rural development. This includes:

 Installation of deep bore hand pumps to provide clean drinking water.

 Constructing metalled roads and connecting these villages to the National
Highway (NH -8).
 Renovating primary school buildings and providing hygienic water and toilet
facilities.
 Ensuring a proper drainage system at each of these villages to prevent water-
logging.
 Promoting non-conventional sources of energy by providing a 50 per cent
subsidy on biogas plants.

29
The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55
students from nearby areas. It has now grown into a modern Senior Secondary, CBSE
affiliated co-educational school with over 1200 students and 61 teachers. The school
has a spacious playground, an ultra-modern laboratory, a well-equipped audio visual
room, an activity room, a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and
hockey and football grounds are used by the local villagers. In the near future, sports
academies are planned for volley ball and basket ball, in collaboration with National
Sports Authority of India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a
Vocational Training Centre. So far 26 batches comprising of nearly 625 women have
been trained in tailoring, embroidery and knitting. The Company has helped women
trained at this centre to set up a production unit to stitch uniforms for Hero Honda
employees. Interestingly, most of the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36
adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to
another 100 adults by getting village heads and other prominent villagers to motivate
illiterate adults.

Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward
classes, by the Foundation by providing financial help and other support to the
families.

Rural Health Care

30
Besides setting up a modern hospital, the Foundation also regularly provides doorstep
health care services to the local community. Free health care and medical camps are
now a regular feature in the Hero Group's community outreach program.

KEY POLICIES 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
high-quality 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.

Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the
economic concerns and the environmental and social issues faced by a business. A
business must not grow at the expense of mankind and man's future but rather must
serve mankind.
"We must do something for the community from whose land we generate our
wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
We at Hero Honda are committed to demonstrate excellence in our
environmental performance on a continual basis, as an intrinsic element of our
corporate philosophy.
To achieve this we commit ourselves to:

 Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of
hazardous chemicals, where viable and strengthen the greening of supply
chain.
 Continue product innovations to improve environmental compatibility.

31
  Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as
reasonably achievable).
 Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
 Enhance environmental awareness of our employees and dealers / vendors,
while promoting their involvement in ensuring sound environmental
management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly
in our products and services which will meet and exceed customer's growing
aspirations through:

 Innovation in products, processes and services.

 Continuous improvement in our total quality management systems.
 Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons
who may be affected by its operations. We believe that the safe work practices lead to
better business performance, motivated workforce and higher productivity.
We shall create a safety culture in the organization by:

 Integrating safety and health matters in all our activities.

 Ensuring compliance with all applicable legislative requirements.
 Empowering employees to ensure safety in their respective work places.
 Promoting safety and health awareness amongst employees, suppliers and
contractors.
 Continuous improvements in safety performance through precautions besides
participation and training of employees.

32
INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX
MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX

MOTORS PVT LTD. is established on 21st march 2003. The business is running
by only one man. The owner name is ch .madhu mathi the firm is located at
habsiguda in Hyderabad.
Generally the sale will be either on cash basis or on institutional basis.
Bank like ICICI, HDFC and CENTURION are providing loans to customers.
Advertising strategy of phoenix motors:
They are giving the ads through newspapers, wall paintings,
hoardings and field staff. They are upgrading sales by introducing the schemes, group
bookings, institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are allotted for field staff,
5 members are recruited for sales for persons, 5 persons are placed for evaluating for
spare parts, 5 members are allotted for managerial accounts and another 3 persons for
cash transaction and other members are allotted for remaining work.

Customer relationship:
They entertain the showroom providing a customer’s huge having pool game, internet
facility and television with home there system. They provide bile maintenance
programs on every week.
According to other dealers PHOENIX motors in first in sales and best in service.
They treat customer, is the very important person at PHOENIX motors customer
satisfaction is their motto, why because, they will satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees
also. At PHOENIX motors the customer is the boss.

33
SALES STRATEGY OF PHOENIX MOTORS:
Average they are selling 28 vehicles per day. PHOENIX motors PVT
L.T.D is the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify
leader through quality dealer). At PHOENIX motor they gave the quality service to
the customers why because ‘the cost is long forgotten but the quality is remembered
for ever”. They treat quality has a...
Q Quest for excellence
U Understanding customer’s needs
A Action to achieve customer’s appreciation.
L Leadership determined to be a leader
I involving all the people
T Team spirit to work for a common goal
Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be
directly handled by the respective original manufactures (OEM’s) except AMCO for
batteries and Dunlop and Falcon tires and Tubes. In case of any defect in proprietary
items, other than the above two mentioned OEM’S the dealers must approach the
Brach office dealer of the respective manufacture. For AMCO batteries and Dunlop
and falcon tires, tubes claims will be accepted at our authorized dealerships per the
mutually agreed terms and conditions between HERO and of these two OEM’s in
case the claim is not accepted for invalid reasons. Then the claim along with the
refusal note form the OEM can be sent to the warranty section at gorgon plan after
due to recommendation of the area service engineer. If any other six services or
subsequent paid services is not availed as per the recommended schedule given in the
owner’s manual. If HERO recommended engine oil is not used. To normal wear &
tear components like bulbs, electric wiring, filters, spark plug, clutch plates, braded
shoes, fasteners, shim washers, oil seals, gaskets, rubber parts (other than tyre and
tube) plastic components, chain$ sprockets and in case of wheel rim misalignment or
bend.
If there is any damage due o modification or fittings of accessories other than ones
recommended by HERO. If the motor has been used in any competitive events like
tracking races or rallies. If there is any damage to the painted surface due to industrial
34
pollution or other extraneous factors. For clams made for any consequential damage
due to any previous malfunction. For normal phenomenon like noise, vibration, oil
seepage, which do not affect the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently
the phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st
January 2006.they motivated on the consumers to participated in this camp and also
provide certificate for the customers
THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

35
36
37
38
CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool
game, Internet facility and television with home theatre system. They provide bike
maintenance programs on every week. According to other dealers PHOENIX motors
in first in sales and best in service. They treat customer, is the very important person
at PHOENIX motors customer satisfaction is their motto, why because, the well
satisfied customer is the best advertisement. They provide better value for the
customers and as well as employees also. At PHONIX motors the customer is the
boss.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix

motors organize a BLOOD DONATION CAMP for the trust in every year. They
motivated on the customers to participated in this camp and also provide Certificate
for the customers.

39
 CHAPTER-III
REVIEW OF LITERATURE

40
Markets:
The concepts of exchange and relationships lead to the concept of a market. A
market is the set of actual and potential buyers of a product. These buyers share a
particular need or want that can be satisfied through exchange relationships.

Marketing means managing markets to bring about profitable customer

relationships. However, creating these relationships takes work. Sellers must search
for buyers, identify must first create a need-satisfying marketing offer (product). It
must decide how much it will charge for the offer (price) and how it will make the
offer available target consumers (place).Finally, it must communicate with the target
customers about the offer and persuade them of its merits (promotion).

Marketing:
Marketing is the business function that identifies customer needs and wants.
Creating customer value and satisfaction are the heart of modern marketing thinking
and practice. Marketing is the delivery of customer satisfaction at a profit.

Many people think of marketing only as

Selling & advertising. But selling & advertising are
Only the tip of marketing. Marketing means managing
markets to bring about exchanges and relationships for
the purpose of creating value and satisfying needs & wants.

Today, marketing must be understood not in the old sense of making a sale –
‘’telling and selling’’ – but in the new sense of satisfying customer needs. If the
marketer does a good job of understanding consumer needs; develops products that
provide superior value; and prices, distributes, and promotes them effectively, these
products will sell very easily. Thus, selling and advertising are only part of a larger
‘’marketing mix’’ – a set of marketing tools that work together to satisfy customer
needs and build customer relationships.

Broadly defined, marketing is a social and managerial process by which

individuals and groups obtain what they need and want through creating and
41
exchanging value with others. In a narrower business context, marketing involves
building profitable, value – laden exchange relationships with customers. Hence, we
define marketing as the process by which companies create value for customers and
build strong relationships in order to capture value from customers in return.

Customer Needs, Wants, and Demands:

The most basic concept underlying marketing is that of human needs. Human
needs are states of felt deprivation. They include basic physical needs for food,
clothing, warmth, and safety: social needs for belonging and affection: and individual
needs for knowledge and self – expression. Marketers did not create these needs: they
are a basic part of the human makeup.

Wants are the form human needs take as they are shaped by culture and
individual personality. An American needs food but wants a Big Mac, French fries,
and a soft drink. A person in Mauritius needs food but wants a mango. Rice, lentils,
and beans. Buying power shapes wants, wants become demands. Given their wants
and resources, people demand products with benefits that add up to the most value
and satisfaction.

Marketing Management:
The analysis, planning, implementation and control of programs design to
create, build and maintain beneficial exchanges with target buyers for the purpose of
achieving organizational objectives.

MARKETING MANAGEMENT CONCEPTS

Production Product Selling Marketing Societal

42
Production concept:

Management should focus on improving production and distribution

efficiency. When the demand for a product exceeds the supply, management should
looks for ways to increase production. When the products cost is too high, improved
productivity is needed to bring it down.

Product concept:
Consumer will favour products that offer the most quality, performance and
HEROHONDA tide features. Thus, an organization should devote energy to making
continues product improvements.

Selling concept:
Consumers will not buy enough of the organizations products unless its under
takes large-scale selling and promotion effort.

Existing Selling & Profits through

Factory products promoting sales volume

Selling:
Selling is also important function of marketing. It is the process where by
goods and services finally flow to the customers who need them. Selling focuses on
the needs of the seller.
Marketing concept:
The marketing concept holds that achieving organizational goals depends on
determining the needs and wants of target markets and delivering the desired
satisfaction more effectively and efficiently than to competitors.

Customer Integrated Profits through

Market needs marketing customer satisfaction

Marketing means obtaining customers. Marketing focuses on the needs of the

purchaser. Makes profits by creating long term customer relationships based on
customer value and satisfaction.
43
Societal concept:
The societal marketing concept holds that the organization
should determine the needs, wants and interests of target markets.

Society
(Human welfare)

Consumers Company
(Want satisfaction) (Profits)

Marketing Mix (4 Ps):

Marketing mix includes the set of controllable, tactical marketing tools in the
target market.

 Product means the goods and services combination the company offer
to the target market. Ex: Nuts & Bolts, Spark plugs, Pens & Pencils
etc.

 Price is the amount of money customers has to pay to obtain the

product.

 Place includes company activities that make the product available to

target consumers

 Promotion means activities that communicate the merits of the product

and persuade target customers to buy it. Ford spends money each year
for advertising to tell consumer about the company and its product.

44
 Product Price
Product variety List price
Quality & Design Discounts
Features Allowances
Brand name Payment period
Packaging & Services Credit terms
Warranties & Returns

Target
Customers

Place Promotion
Channels Advertising
Coverage & Locations Personal selling
Assortments Sales promotion
Inventory Public relations
Transportations
Logistics

45
 Marketing effort / Marketing control:

The company wants to design and put in to action the marketing mix that will
best achieves its objectives in its target markets.

Analysis

Implementation Control
Planning
Measure results
Develop strategic Carry out plans
plans
(The company turns the Evaluate results
plans
Customer value and satisfaction: In to action)
Develop marketing
Take corrective
plans
action

Consumers usually face a broad array of products and services that might satisfy a
given need. How do they choose among these many marketing offers? Customers
form expectations about the value and satisfaction that various marketing offers will
deliver and buy accordingly. Satisfied customers buy again and tell others about their
good experiences. Dissatisfied customers often switch to competitors and disparage
the product to others.

Marketers must be BIKEeful to set the right level of expectation. If they set
expectations too low, they may satisfy those who buy but fail to attract enough
buyers. If they raise expectations too high, buyers will be disappointed. Customers
value and customers satisfaction are key building blocks for developing and managing
customer relationships.

46
Satisfaction is defined as….

“A persons feelings of pleasure or disappointment resulting from comparing a

product’s perceived performance (or outcome) in relation to his or her expectations”.

Customer satisfaction depends on products perceived performance in

delivering value relative to buyer’s expectations. If the products performance falls
short of the customer’s expectations, the buyer is dissatisfied. If performance matches
expectations, the buyer is satisfied. If performance exceeds expectations, the buyer is
delighted.

47
CUSTOMER RELATIONSHIP MANAGEMENT

CRM:
CRM stands for Customer Relationship Management. It is a strategy used to
learn more about customers' needs and behaviors in order to develop stronger
relationships with them. After all, good customer relationships are at the heart of
business success. There are many technological components to CRM, but thinking
about CRM in primarily technological terms is a mistake. The more useful way to
think about CRM is as a process that will help bring together lots of pieces of
information about customers, sales, marketing effectiveness, responsiveness and
market trends.

Goals of CRM:

The idea of CRM is that it helps businesses use technology and human resources
to gain insight into the behavior of customers and the value of those customers. If it
works as hoped, a business can:

 Provide better customer service

 Make call centers more efficient

 Cross sell products more effectively

 Help sales staff close deals faster

 Simplify marketing and sales processes

 Discover new customers

 Increase customer revenues

It doesn't happen by simply buying software and installing it. For CRM to be truly
effective, an organization must first decide what kind of customer information it is
looking for and it must decide what it intends to do with that information. For

48
example, many financial institutions keep track of customers' life stages in order to
market appropriate banking products like mortgages or IRAs to them at the right time
to fit their needs.

Next, the organization must look into all of the different ways information
about customers comes into a business, where and how this data is stored and how it
is currently used. One company, for instance, may interact with customers in a myriad
of different ways including mail campaigns, Web sites, brick-and-mortar

stores, call centers, mobile sales force staff and marketing and advertising efforts.
Solid CRM systems

Link up each of these points. This collected data flows between operational
systems (like sales and inventory systems) and analytical systems that can help sort
through these records for patterns. Company analysts can then comb through the data
to obtain a holistic view of each customer and pinpoint areas where better services are
needed. For example, if someone has a mortgage, a business loan, an IRA and a large
commercial checking account with one bank, it behooves the bank to treat this person
well each time it has any contact with him or her.

Need for a CRM project:

Not really. But one way to assess the need for a CRM project is to count the
channels a customer can use to access the company. The more channels you have, the
greater need there is for the type of single centralized customer view a CRM system
can provide.

How long will it take to get CRM in place

A bit longer than many software salespeople will lead you to think. Some
vendors even claim their CRM "solutions" can be installed and working in less than a
week. Packages like those are not very helpful in the long run because they don't
provide the cross-divisional and holistic customer view needed. The time it takes to
put together a well-conceived CRM project depends on the complexity of the project
and its components.

49
CRM cost:

A recent (2001) survey of more than 1,600 business and IT professionals,

conducted by The Data Warehousing Institute found that close to 50% had CRM
project budgets of less than $500,000. That would appear to indicate that CRM
doesn't have to be a budget-buster. However, the same survey showed a handful of
respondents with CRM project budgets of over $10 million.

What are some examples of the types of data CRM projects should be collecting?

 Responses to campaigns

 Shipping and fulfillment dates

 Sales and purchase data

 Account information

 Web registration data

50
  Service and support records

 Demographic data

 Web sales data

Customer relationship management is a broadly recognized, widely-implemented

strategy for managing and nurturing a company’s interactions with clients and sales
prospects. It involves using technology to organize, automate, and synchronize
business processes—principally sales activities, but also those for marketing,
customer service, and technical support. The overall goals are to find, attract, and win
new clients, nurture and retain those the company already has, entice former clients
back into the fold, and reduce the costs of marketing and client service. Once simply a
label for a category of software tools, today, it generally denotes a company-wide
business strategy embracing all client-facing departments and even beyond. When an
implementation is effective, people, processes, and technology work in synergy to
increase profitability, and reduce operational costs.

Benefits

These tools have been shown to help companies attain these objectives:

 Streamlined sales and marketing processes

 Higher sales productivity
 Added cross-selling and up-selling opportunities
 Improved service, loyalty, and retention
 Increased call center efficiency
 Higher close rates
 Better profiling and targeting
 Reduced expenses
 Increased market share
 Higher overall profitability
 Marginal costing
 Creates communication

51
Challenges

Tools and workflows can be complex to implement, especially for large enterprises.
Previously these tools were generally limited to contact management: monitoring and
recording interactions and communications. Software solutions then expanded to
embrace deal tracking, territories, opportunities, and at the sales pipeline itself. Next
came the advent of tools for other client-facing business functions, as described
below. These technologies have been, and still are, offered as on-premises software
that companies purchase and run on their own IT infrastructure. Perhaps the most
notable trend has been the growth of tools delivered via the Web, also known as cloud
computing and software as a service (SaaS). In contrast with traditional on-premises
software, cloud-computing applications are sold by subscription, accessed via a secure
Internet connection, and displayed on a Web browser. Companies don’t incur the
initial capital expense of purchasing software; neither must they buy and maintain IT
hardware to run it on.

Despite all this, many companies are still not fully leveraging these tools and services
to align marketing, sales, and service to best serve the enterprise. Often,
implementations are fragmented; isolated initiatives by individual departments to
address their own needs. Systems that start disunited usually stay that way: Siloed
thinking and decision processes frequently lead to separate and incompatible systems,
and dysfunctional processes.

Types/variations
Sales Force Automation
A sales force automation (SFA) system provides an array of capabilities to streamline
all phases of the sales process, minimizing the time that sales representatives need to
spend on manual data entry and administration. This allows them to successfully
pursue more clients in a shorter amount of time than would otherwise be possible. At
the heart of SFA is a contact management system for tracking and recording every
stage in the sales process for each prospective client, from initial contact to final
disposition. Many SFA applications also include insights into opportunities,
territories, sales forecasts and workflow automation, quote generation, and product
knowledge. Newly-emerged priorities are modules for Web 2.0 e-commerce and
pricing.
52
Marketing
Systems for marketing (also known as marketing automation) help the enterprise
identify and target its best clients and generate qualified leads for the sales team. A
key marketing capability is tracking and measuring multichannel campaigns,
including email, search, social media, and direct mail. Metrics monitored include
clicks, responses, leads, deals, and revenue. As marketing departments are
increasingly obliged to demonstrate revenue impact, today’s systems typically include
features for measuring the ROI of campaigns.

Customer Service and Support

Recognizing that service is an important differentiator, organizations are increasingly

turning to technology platforms to help them improve their clients’ experience while
aiming to increase efficiency and minimize costs. Even so, a 2009 study revealed that
only 39% of corporate executives believe their employees have the right tools and
authority to solve client problems. “The core for these applications has been and still
is comprehensive call center solutions, including such features as intelligent call
routing, computer telephone integration (CTI), and escalation capabilities.

Analytics
Relevant analytics capabilities are often interwoven into applications for sales,
marketing, and service. These features can be complemented and augmented with
links to separate, purpose-built applications for analytics and business intelligence.
Sales analytics let companies monitor and understand client actions and preferences,
through sales forecasting, data quality, and dashboards that graphically display key
performance indicators (KPIs).

Marketing applications generally come with predictive analytics to improve

segmentation and targeting, and features for measuring the effectiveness of online,
offline, and search marketing campaign Web analytics have evolved significantly
from their starting point of merely tracking mouse clicks on Web sites. By evaluating
“buy signals,” marketers can see which prospects are most likely to transact and also
identify those who are bogged down in a sales process and need assistance. Marketing
and finance personnel also use analytics to assess the value of multi-faceted programs
as a whole.

53
These types of analytics are increasing in popularity as companies demand greater
visibility into the performance of call centers and other support channels, in order to
correct problems before they affect satisfaction levels. Support-focused applications
typically include dashboards similar to those for sales, plus capabilities to measure
and analyze response times, service quality, agent performance, and the frequency of
various issues.

Integrated/Collaborative

Departments within enterprises—especially large enterprises—tend to function in

their own little worlds. Traditionally, inter-departmental interaction and collaboration
have been infrequent and rivalries not uncommon. More recently, the development
and adoption of the tools and services has fostered greater fluidity and cooperation
among sales, service, and marketing. This finds expression in the concept of
collaborative systems which uses technology to build bridges between departments.

For example, feedback from a technical support center can enlighten marketers about
specific services and product features clients are asking for. Reps, in their turn, want
to be able to pursue these opportunities without the time-wasting burden of re-
entering records and contact data into a separate SFA system. Conversely, lack of
integration can have negative consequences: system isn’t adopted and integrated
among all departments, several sources might contact the same clients for an identical
purpose. Owing to these factors, many of the top-rated and most popular products
come as integrated suites.

Small Business

Basic client service can be accomplished by a contact manager system, an integrated

solution that lets organizations and individuals efficiently track and record
interactions, including emails, documents, jobs, faxes, scheduling, and more. This
kind of solution is gaining traction with even very small businesses, thanks to the ease
and time savings of handling client contact through a centralized application rather
than several different pieces of software, each with its own data collection system. In

54
contrast these tools usually focus on accounts rather than individual contacts. They
also generally include opportunity insight for tracking sales pipelines plus added
functionality for marketing and service. As with larger enterprises, small businesses
are finding value in online solutions, especially for mobile and telecommuting
workers.

Social Media

Social media sites like Twitter and Facebook are greatly amplifying the voice of
people in the marketplace, and are predicted to have profound and far-reaching effects
on the ways companies manage their clients. This is because people are using these
social media sites to share opinions and experiences on companies, products, and
services. As social media isn’t moderated or censored, individuals can say anything
they want about a company or brand, whether pro or con.

Increasingly, companies are looking to gain access to these conversations and take
part in the dialogue. More than a few systems are now integrating to social
networking sites. Social media promoters cite a number of business advantages, such
as using online communities as a source of high-quality leads and a vehicle for crowd
sourcing solutions to client-support problems. Companies can also leverage client
stated habits and preferences to personalize and even “hyper-target” their sales and
marketing communications.

Some analysts take the view that business-to-business marketers should proceed
cautiously when weaving social media into their business processes. These observers
recommend careful market research to determine if and where the phenomenon can
provide measurable benefits for client interactions, sales, and support.

Non-profit and Membership-based

Systems for non-profit and membership-based organizations help track constituents

and their involvement in the organization. Capabilities typically include tracking the
following: fund-raising, demographics, membership levels, membership directories,
volunteering and communications with individuals.

55
Many include tools for identifying potential donors based on previous donations and
participation. In light of the growth of social networking tools, there may be some
overlap between social/community driven tools and non-profit/membership tools.

Strategy

Choosing and implementing a system is a major undertaking. For enterprises of any

appreciable size, a complete and detailed plan is required to obtain the funding,
resources, and company-wide support that can make the initiative successful. Benefits
must be defined, risks assessed, and cost quantified in three general areas:
56
 Processes: Though these systems have many technological components,
business processes lie at its core. It can be seen as a more client-centric way of
doing business, enabled by technology that consolidates and intelligently
distributes pertinent information about clients, sales, marketing effectiveness,
responsiveness, and market trends. Therefore, before choosing a technology
platform, a company needs to analyze its business workflows and processes;
some will likely need re-engineering to better serve the overall goal of
winning and satisfying clients. Moreover, planners need to determine the types
of client information that are most relevant, and how best to employ them.

 People: For an initiative to be effective, an organization must convince its staff

that change is good and that the new technology and workflows will benefit
employees as well as clients. Senior executives need to be strong and visible
advocates who can clearly state and support the case for change.
Collaboration, teamwork, and two-way communication should be encouraged
across hierarchical boundaries, especially with respect to process
improvement.

 Technology: In evaluating technology, key factors include alignment with the

company’s business process strategy and goals; the ability to deliver the right
data to the right employees; and sufficient ease of use that users won’t balk.
Platform selection is best undertaken by a carefully chosen group of
executives who understand the business processes to be automated as well as
the various software issues. Depending upon the size of the company and the
breadth of data, choosing an application can take anywhere from a few weeks
to a year or more.

57
Implementation

Implementation Issues

Dramatic increases in revenue, higher rates of client satisfaction, and significant

savings in operating costs are some of the benefits to an enterprise. Proponents
emphasize that technology should be implemented only in the context of careful
strategic and operational planning. Implementations almost invariably fall short when
one or more facets of this prescription are ignored:

 Poor planning: Initiatives can easily fail when efforts are limited to choosing
and deploying software, without an accompanying rationale, context, and
support for the workforce. In other instances, enterprises simply automate
flawed client-facing processes rather than redesign them according to best
practices.

 Poor integration: For many companies, integrations are piecemeal initiatives

that address a glaring need: improving a particular client-facing process or two
or automating a favored sales or client support channel. Such “point solutions”
offer little or no integration or alignment with a company’s overall strategy.
They offer a less than complete client view and often lead to unsatisfactory
user experiences.

 Toward a solution: overcoming siloed thinking. Experts advise organizations

to recognize the immense value of integrating their client-facing operations. In
this view, internally-focused, department-centric views should be discarded in
favor of reorienting processes toward information-sharing across marketing,
sales, and service. For example, sales representatives need to know about
current issues and relevant marketing promotions before attempting to cross-
sell to a specific client. Marketing staff should be able to leverage client
information from sales and service to better target campaigns and offers. And
support agents require quick and complete access to a client’s sales and
service history.

58
Adoption Issues

Historically, the landscape is littered with instances of low adoption rates. In 2003, a
Gartner report estimated that more than $1 billion had been spent on software that
wasn’t being used. More recent research indicates that the problem,while perhaps less
severe, is a long way from being solved. According to a CSO Insights less than 40
percent of 1,275 participating companies had end-user adoption rates above 90
percent.

In a 2007 survey from the U.K., four-fifths of senior executives reported that their
biggest challenge is getting their staff to use the systems they’d installed. Further, 43
percent of respondents said they use less than half the functionality of their existing
system; 72 percent indicated they’d trade functionality for ease of use; 51 percent
cited data synchronization as a major issue; and 67 percent said that finding time to
evaluate systems was a major problem. With expenditures expected to exceed $11
billion in 2010, enterprises need to address and overcome persistent adoption
challenges. Specialists offer these recommendations for boosting adoptions rates and
coaxing users to blend these tools into their daily workflow:

 Choose a system that’s easy to use: All solutions are not created equal. Some
vendors offer more user-friendly applications than others, and simplicity
should be as important a decision factor as functionality.

 Choose the right capabilities: Employees need to know that time invested in
learning and usage will yield personal advantages. If not, they will work
around or ignore the system.

 Provide training: Changing the way people work is no small task, and help is
usually a requirement. Even with today’s more usable systems, many staffers
still need assistance with learning and adoption. Provide consistent support.
Prompt, expert, always-accessible technical support goes a long way to
facilitate use and confidence with a new system.

59
Successful CRM implantation

 Break your CRM project down into manageable pieces by setting up pilot
programs and short-term milestones.

 Starting with a pilot project that incorporates all the necessary departments
and groups that gets projects rolling quickly but is small enough and flexible
enough to allow tinkering along the way.

 Make sure your CRM plans include a scalable architecture framework.

 Don't underestimate how much data you might collect (there will be LOTS)
and make sure that if you need to expand systems you'll be able to.

 Be thoughtful about what data is collected and stored. The impulse will be to
grab and then store EVERY piece of data you can, but there is often no reason
to store data. Storing useless data wastes time and money.

 Recognize the individuality of customers and respond appropriately. A CRM

system should, for example, have built-in pricing flexibility.

CRM project to run:

The biggest returns come from aligning business, CRM and IT strategies
across all departments and not just leaving it for one group to run.

CRM projects to fail:

Many things from the beginning, lack of a communication between everyone

in the customer relationship chain can lead to an incomplete picture of the customer.
Poor communication can lead to technology being implemented without proper
support or buy-in from users.

For example, if the sales force isn't completely sold on the system's benefits, they may
not input the kind of demographic data that is essential to the program's success.

60
One Fortune 500 company is on its fourth try at a CRM implementation, primarily
because its sale force resisted all the previous efforts to share customer data.

10 Tips for implementing customer self-service

 Learn everything about your customers.

 Conduct focus groups to ensure that they want self-service.

 Define clear business goals.

 Evaluate the technology for its technical and financial merits.

 Does it match your customer base? Will it boost profitability?

 Work as a team. Have customer support, IT and other departments

involved every step of the way.

 Offer training to employees.

 Expect this to be an iterative process that requires making changes as

you learn more about your customers.

 Develop an effective way to measure results.

 Under promise and over deliver.

Customer relationship management is a business strategy to select and manage

the most valuable customer relationships. CRM requires a customer-centric business
philosophy and culture to support effective marketing, sales, and service processes.
CRM applications can enable effective customer relationship management, provided
that an enterprise has the right leadership, strategy, and culture.” -The CRM Primer,
www.crmguru.com

61
Benefits of a CRM program

 Cultural changes

 The four phases of implementation

 Research & Best practices: Ben

Casino case: Jason

IT’s role in CRM: Improved customer retention Greater retention results in a

larger future customer base CRM’s relation to the supply chain Conclusion &
Discussion

The impact of a 5% increase in retention rates

Benefits of CRM:

Improved customer retention

Purchase amount increases over time

– Average of 8%/year in the insurance industry

Reduction in costs

– Order processing
– Short-term acquisition costs
– Customer referrals

On the “gray markets”

– Often harmful to profits

– Frequently used to level inventories 2-way communications
– Improves customer satisfaction the initiative
– Shift from product orientation to customer
– Shift in marketing type
– Away from mass, towards personal “1:1”
Change in attitude at all levels

62
 – Compensation system must change to reinforce new behaviors
New positions or teams should be formed

Pre-implementation:

Classify customers based on diversity of value and needs

Classify customers based on diversity of value and needs

Determine who the customers are

– Wal-Mart, or Jimmy Joe-Bob?

Business categories Consumer categories

Identification Identification
Customer Rating Customer Rating
Background Background
Presale Communication Presale Communication
Decision makers Purchase behavior
Decision making Post purchase behavior
Influences Predicted behavior
Post purchase behavior Creditworthiness
Channels Attitudes and perceptions
Pricing
Predicted Behavior
Creditworthiness
Relevant information

– Don’t ask a customer the same thing more than once

63
 – Interact in the medium of the customer’s choice

– When engaging in an interaction, start with the customer, not the

product

– Make the interactions personal and personalized

– Ensure that your interactions with customers are always welcomed

– Ensure that they are immediately identified and treated appropriately

– Protect the customer’s privacy

– Invite dialogue by printing toll-free numbers and web-site URLs on

everything

– Ensure that the customer can see the value from each interaction.
Deliver information or value that reflects what has been learned

– Be sensitive to the customer’s time. Don’t try to learn everything

about a customer at once.

IT’s role in CRM:

Three general types of eCRM packages

– Marketing Automation Systems (MAS)

» Customer database creation
» Analysis of customer attributes
» Automate several marketing functions

Sales Force Automation (SFA)

» Intended to automate many functions performed by salespeople
64
 » If completely successful, it will eliminate the “personal touch”
eCRM package types:

– Customer Service Automation systems

» Augments call center personnel
» Some can respond to e-mails on their own
» Ties-in to existing company software, including other eCRM
packages (generally…)

Selecting the right CRM packages

– Step 1: Size the package to your firm

– Step 2: Gather as much information on every package sized

appropriately

– Step 3: Using a standard formula, evaluate the packages and make a

choice

CRM and ERP

– Determine if a package can be tied-in to the enterprise’s ERP system

before making a purchase decision

– Inventory, order processing, and accounts receivable features can be

used to augment the CRM program

– Goal: establish a closed-loop eCRM solution

Data mining tools:

– Market basket analysis and automatic cluster generation

65
 – Decision trees and memory-based reasoning

– Neural net systems

CRM in the Supply Chain

Goals of Supply Chain Management:

– Reduce uncertainty and risks in supply chain

– Positively affect inventory levels, cycle time, processes, and end-
customer service levels

Customer Relationship Management

– Useful for forecasting and planning

– Improves customer service levels

CRM across Company Functions

Marketing – Account management expertise

Research & Development – Specifications that define requirements
Logistics – Knowledge of customer service requirements
Production – Manufacturing strategy
Purchasing – Sourcing strategy
Finance – Customer Profitability Reports

66
Customer Relationship Management
Wrap-Up

Your customers improves profits

Focus on the best, treat mid-range as group, and Knowing discourage bottom-feeders
Customize product and service to retain good customers
Give CRM time to pay off; a good CRM program will be worth the investment

67
 CHAPTER-IV

DATA ANALYSIS & INTERPRETATION

68
 TABLE 1

1 which brand do you own?

S NO PRODUCT RESPONDENTS %
1 HERO 60 60
2 HONDA 20 20
3 TVS 15 15
4 SUZUKI 5 5

CHART 1

4 SUZUKI
5% RESPONDENTS

3 TVS
15%

2 HONDA
1 HERO
20%
60%

Interpretation:

From above it can be stated that the general satisfaction level of for HERO
in twin cities of Hyderabad and Secunderabad is 60%.

69
2. SOURCES OF AWARENESS:

The customer was enquired about the sources of awareness with regard the
HERO. This will help to know us to which sources is playing a major role in creating
awareness among the customers.
S .NO ADVERTISEMENT RESPONDENTS %

1 T.V 35 35
2 NEWSPAPERS 25 25
3
FRIENDS 12 12
4
DEALERS 28 28

CHART-2

DEALERS
28%
T.V
35%
1 T.V
2 NEWSPAPERS
3 FRIENDS
4 DEALERS
FRIENDS
12% NEWS
PAPERS
25%

Interpretation:

Out of the responses obtained from 100 customers 28% said that they
became aware of the Friends. And through the friends 35% of the customers are
aware from the T.V. And another 25% are aware of by the NEWS PAPERS. And only
12% are aware by the DEALERS.

70
3. LEVEL OF SATISFACTION:

The customer was enquired about the level of satisfaction with regard to the
HERO.

S NO SATISFACTION RESPONDENTS %

1 EXCELLENT 30 65
2 GOOD 10 20
3 AVERAGE 50 10
4 POOR 10 5

CHART-3

Poor
Average 5%
10%

S NO
SATICEFACT
ION
1 Excellent

Good
20% Excellent
65%

Interpretation:
Out of the responses obtained from 100 customers 65% said that they are
EXCELLENT satisfied and 20% were GOOD and 10% were AVERAGE and 5%
were vehicle is poor. This data is obtained by most of members were satisfied by
HERO product.

71
4. What are the voluble attributes you normally look while purchasing a Two-
wheeler?

S NO ATTRIBUTES RESPONDENTS

1 PERFORMENS 50 50

2 PRICE 10 10

3 DESIGN 30 30

4 OTHERS 10 10

CHART-4

RESPONDENTS

OTHERS
10%
DESIGN
30%
1 DESIGN
2 PRICE
3 PERFORMANCE
PERFORMAN 4 OTHERS
CE
50% PRICE
10%

Interpretation:

From the above it can be stated that general normally any one while purchasing a four
wheeler most of the members are seeing 50% of members are seeing PERFORMENS
and 30% of members are seeing DESIGN And 10% of members are seeing PRICE
and 10% of members are Others.

5. SUGGESTING TO FRIENDS:

72
 The following table is regarding the customer likeliness in suggesting this
showroom to other friends. This is an indicator of customer satisfaction also.
Let’s see the responses.

S NO SUGGEST FRIENDS RESPONDENTS %

1 YES 90 90

2 NO 10 10

CHART-5

100

80

60
90%
40 RESPONDENTS

20
10%
0
YES NO
1 2

Interpretation:

A look at the chart shows that 90% of the members are suggesting and 10% of the
members are not suggesting.

6) SALSE EXECUTIVE PERFORMENS:

The following table shows “sales executive” role in explaining the features of
the cat to customer. This helps to know how effective he is in his job let’s see the
response.

73
 S NO EXPLANATION IN NUMBERS %

1 EXCELLENT 70 70

2 VERY GOOD 25 25

3 POOR 5 5

CHART-6

RESPONDENTS
POOR
5%

1 EXCELLENT
VERY GOOD 2 VERY GOOD
25%
3 POOR

EXCELLENT
70%

Interpretation:

Out of 100 respondents 60 % of them felt the explanation to be

“EXCELLENT”. And 35% of them “VERY GOOD” and rest of 5% felt to be
“POOR”. According to them sales executives does knotty explain all feature POOR
this kind of responses need to be considered with seriousness.

74
7) DELIVERY TERMS:

One of the major factors, which has great role in “CRM”, is the delivery terms with
regard to customer query or grievance.

DELIVERY TERMS IN NUMBERS

70
TIMELY/PROMPTLY

SAFELY 25

INCONDITION 5

CHART-7

80
70
60
TIMELY/PROMPTLY
50
40 SAFELY
30 INCONDITION
20
10
0
IN NUMBERS

Interpretation:

From the above chart we conclude that most of the customer that is 70% of
found the delivery process is to be “TIMELY” and 25% of delivery process to be
“SAFELY” and 5% of delivery process to “INCONDITION”.

75
8) What is your opinion about mileage?

S NO OPINION RESPONDENTS %
1 EXCELLENT 50 50
2 GOOD 30 30
3 AVERAGE 15 15
4 POOR 5 5

CHART-8

RESPONDENTS

IN
DELIVERY CONDITION
PROCESS 5%
15% 1 TIMELY

2 SAFELY

3 DELIVERY
PROCESS
SAFELY
TIMELY 4 IN CONDITION
20%
60%

Interpretation:
Out of the 100 respondents 50% of them told “EXCELLENT” and 30% of them told
“GOOD” and 15% of them told “AVERAGE” and 5% of them told “POOR”.

76
9) AMBIENCE OF SHOW ROOM:

The other factor, which has much influence on the customer, is the
“AMBIENCE” of the show room. This will help to know how the customer perceives
this particular show room in comparison with the other showroom.

S.NO SCALE RATING RESPONDENTS %

1 SHOWROOM AMBIENCE 55 55

2 DISTANCE 25 25

3 APPEAL 10 10

4 OTHERS 10 10

TOTAL 100 100

CHART-9

OTHERS
10%
APPEAL 1 SHOWROOM
10% AMBIENCE

2 DISTANCE

3 APPEAL
SHOWROOM
AMBIENCE
,55% 4 OTHERS
DISTANCE
25%

Interpretation:
From the above graph we can conclude that out of 100 customers interviewed 40%
were telling that the ambience of showroom is “PLEASANT’ and 38% was telling as
“EXCELLENT” and 22% says “APPEAL” is very good.

77
10.Since how many months have you been using Hero MotoCorp Ltd Bike?

No. of respondents Percentage

0-6 months 23 23%
6-12 months 37 37%
1-2 years 36 36%
More than 2 years 04 04%
Total 100 100%

Using of the service (in months):

4%
23%

0-6 months
36%
6-12 months
1-2 years
More than 2 years

37%

Interpretation:
From the above table it is seen that 37% of the respondents have been using

Hero MotoCorp Ltd products for past one year. While 36% have been using it for

more than 1 year, and a significant 23% of respondents have been using the service

for less than six months. Only 4% of the respondents have been using Hero MotoCorp

Ltd products for more than 2 –years.

78
11.What is the reason for choosing this Bike?

No. of respondents Percentage

Less price 20 20%
Quality service 56 56%
Brand image 24 24%
Total 100 100%

Reason for choosing the service:

24% 20%

Less price
Quality service
Brand image

56%

Interpretation

From the above table it is shown that 56% of the respondents are citing quality

of service as the factor. While 24% cited brand image as the reason for choosing the

service. As far as price is concerned only 20% of the respondents have quoted it as the

reason for choosing this service.

79
12. Why do you prefer for this service?

No. of respondents Percentage

Convenience 53 53%
Economical 30 30%
Security 04 04%
Features 13 13%
Total 100 100%
Preferring for this service:

13%

4%

Convenience
Economical
53% Security
Features
30%

Interpretation

In today’s busy world convenience seems to be the most overriding factor while

preferring a cellular service. It is clear that 53% of the respondents have preferred this

service due to easy & hands free availability, making it convenient to use it. On the

other hand 30% have said economy of the service, while 13% of the respondents have

given features as their choice. While a meager 4% of the said security as the reason

for preferring the service.

80
13.Do you feel that the instruments being provided along with the services is ok
or you want a change (as per choice)?

No. of respondents Percentage

Yes, we want change 10 10%
No, it is OK 90 90%
Total 100 100%

Instruments provided with service are ok or not:

10%

Yes, we want change

No, it is OK

90%

Interpretation:

From the above table it is clear that 90% of the total 100 respondents doesn’t

want any change in the instruments being provided by the company, they want as it is.

But the remaining 10% of the respondents are willing to have change in that at some

choice, in terms of certain features as compared with the competitors.

81
14.What is your Opinion on the service availability of Hero?

No. of respondents Percentage

Easily available 100 100%
Not available 00 00%
To some extent 00 00%
Can’t say 00 00%
Total 100 100%

No. of respondents

Easily available
Not available
To some extent
Can’t say
Total

Interpretation:

The above table indicates that the Hero MotoCorp Ltd services are easily

available in urban areas; this is clarified from 100 respondents surveyed.

82
15.Are you satisfied with the quality of service being provided?

No. of respondents Percentage

Yes 85 85%
No 5 5%
To some extent 0 0%
Can’t say 10 10%
Total 100 100%

Satisfaction l with the quality of service:

10%
0%
5%

Yes
No
To some extent
Can’t say

85%

Interpretation:

From the above table it is clear that 85% of the respondents are satisfied with

the quality of service while a significant number i.e., 10% of the respondents couldn’t

say anything and 5% of the respondents replied they are not satisfied with the quality

of service.

83
16.Have you faced any problem at the time of Change in section?

No. of respondents percentage

Yes 10 10%
No 90 90%
Total 100 100%

Facing of problems:

100 90
90
80
70
60
50
40
30
20
10
10
0
Yes No

Interpretation:

The above table indicates that at the time of activation only 10% of the

respondents have faced problem with company, and 90% of the respondents have not

face any problem.

84
17. YES, What is your rating factor for Bike which you will give
RATING FACTOR GOOD FAIR BAD
Quality
Price 62 4 1

Longevity 46 20 1

Others (_) 55 12 0

Rating factor for reliance products

70

60

50

40 QUALITY

30 PRICE
LONGEVITY
20

10

0
GOOD FAIR BAD

Interpretation:
By the above bar-chart we know that out of 100 respondents 67% have used the Hero.
Out of 67% respondents 62% people rated good quality, 4% respondents rated fair
quality and remaining 1% respondents rated bad quality.
Out of 67% respondents 46% respondents rated good price, 20% respondents
rated fair quality and remaining 1% respondents rated bad price.
Out of 67% respondents’ 55%respondents rated good longevity and 12%
respondents rated fair longevity.

85
18.What way you think promotion of HERO Products Should be done
a) Offers b) Advertisement
c) Free Service d) others ( )

Offers Advertisement Advertisement Free Free service All the above

And offers Service and offers

8 10 17 42 5 6

what do you think promotions

should be done

5% offer
6% 8%

17% advertisement
12%

10% free service

42%
offers & advertisement

Interpretation:
By this pie-chart we know that the promotions should be done by free service and
advertisement.

86
19.Is the appointment system useful to you?

1) Completely 2) Useful 3) Not useful

SL.NO OPTIONS RESPONSE`

1 Completely 25
2 Useful 73
3 Not useful 2
Source: customer survey (primary data)
Appointment system
Completely
Not useful
useful
2%
25%

Useful
73%

Interpretation;
Among the 100 customers when a question was raised regarding the
usefulness of service appointment system 25% of the respondent said completely
useful, 73% said useful and 2% said not useful.

87
 CHAPTER-V

 RECOMMENDATIONS
 FINDINGS
 SUGGESTIONS
 CONCLUSION
 ANNEXTURE
 BIBLIOGRAPHY

RECOMMENDATIONS

 The company should maintain their market position and try to increase their
customers.

 Enough spare parts for the latest models should be stocked, so as to meet
sudden break down calls.

88
 To enable the customers to get in touch with the service personal more easily,
the number of direct phones should be increase or provide the toll free
number.

 Periodically, review meetings with the customers in different areas should be

convinced, to have a general consensus regarding problems being faced by
them.

89
FINDINGS

1. Most of the respondents were aware by the friends and relatives

(48%).Advertisements (28%) also helped in providing information to the
respondents.
2. 82% of the respondents were aware of HERO brand.
3. In advertisement media newspapers (56%) were much affective and motor (38%)
was also a major advertising media.
4. Many factors like family members advertising were responsible for influencing
the customers to buy HERO.
5. 6% of the customers were very much satisfied with HEROS. Whereas 58% was
satisfied with HERO.
6. 39% of the respondents were satisfied with the service of the HERO.
7. After sales service at door step 38% was one of the factors which help the
purchaser to buy a HERO. Prompt service 52% also help to attract the purchaser.
8. 54% of the respondents considered the price of the HERO. As higher where as
only 8% considered as economical and 38% of the respondent said it as
reasonable.

90
SUGGESTIONS

1. The most important media for consumer durables is MOTORS. So, they
should go for television advertisements rather going for newspaper, the
television advertisements influences more on the people. They should spend
some expenditure for T.V. advertisements.
2. Being the price of the HERO is high they should try to reduce prices because
there are many other TV’s which can be purchased at lower cost, and then
these people are selling. If not, the sales may decrease.
3. More features should be added to the television according to the needs of the
customer, because their competitors are coming with new models. According
to the competitors changing models also these people should change the
models also these people should change the models or change the technology.
4. Company should give some incentives to the dealers for promoting the
products of HERO. They should not neglect dealers. They should select good
dealers, b which they can give customer satisfaction.
5. Company should setup service centres at dealer level it self. They should train
some personnel for exclusive maintenance of these Televisions. They should
provide home service to the customers. The personnel should be appointed by
company to the dealers. The service should be accurate.

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CONCLUSION

A study was useful in understanding the customer relationship management of HERO

BIKES among a various customers launching new formulations can make HERO to
the pioneer in many market segments.

HERO was inferred that most customers of high-income group preferred the supply
of HERO BIKES. About 70% of customers are aware of HERO BIKES.

Most of the customers agree that HERO is best quality with reasonable price the
attitude 50% of customers towards price of HERO BIKEs is reasonable. But 10% of
the customers of asking for improvement in the quality.

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 ANNEXTURE

Name of Respondent: ___________________________________________________

Designation: ________________________ Income:
___________________________
Address:
______________________________________________________________
Phone No._________________ Email id: ___________________________________

Introduction & purpose

Good ___________________. I’m __________________ from ................on
Customer Relationship Management. As part of curriculum I am doing this survey for
the award of Master of Business Administration. Kindly, co-operate, the information
given by you will be used for academic purpose only.
……………………………………-o0o-………………………………………………
1. DO YOU OWN A BIKE? (YES / NO)

2. SOURCES OF AWARENESS: ()

(A)T.V (B) NEWSPAPER (C) FRIENDS (D) DEALERS

3. LEVEL OF SATISFACTION ( )

(A)EXCELLENT (B) GOOD (C) AVERAGE (D) POOR

4. WHAT ARE THE VOLUBLE ATTRIBUTES YOU NORMALLY LOOK WHILE

PURCHASING A FOUR-WHEELER? ()

(A) PERFORMENS (B) PRICE (C) DESIGN (D) OTHERS

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5. SUGGESTING TO FRIENDS: (YES/NO)

6) SALSE EXECUTIVE PERFORMENS: ( )

(A)EXCELLENT (B) GOOD (C) AVERAGE (D) POOR

7) DELIVERY TERMS: ()

(A) TIMELY/PROMPTLY (C) SAFELY (C) INCONDITION

8) AMBIENCE OF SHOW ROOM: ( )

(A) SHOWROOM AMBIENCE (B) DISTANCE

(C) APPEAL (C) OTHERS

9. ARE YOU SATISFIED WITH YOUR FOUR WHEELER? (YES / NO)

10. PLEASE RATE OVER ALL EXPERIENCE WITH REGARD TO THE ABOVE
ANS: ___________________________________

11. POST PURCHASE:

(A) DID THE SALES PERSONNEL CONTACT YOU ABOUT THE

SATISFACTION LEVEL AFTER DELIVERING THE BIKE? (YES / NO)

i) HOW MANY TIMES ( )

A) ONCE B) TWICE C) MORE THAN TWICE

12 ) WERE THEY FRIENDLY (YES / NO)

13. Since how many months have you been using this?
a) 0-6 months b) 6-12 months
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 c) 1-2 years d) more than 2 years
14. What is the reason for choosing this service?
a) Less price b) Quality service
b) Brand image

15. Why do you prefer this service?

a) Convenience b) Economical
c) Security e) Features
16. Do you feel that the instruments being provided along with the services is OK or
you want any change? (As per your choice)
a) Yes, we want change b) No, it is ok
17. What is your opinion on the serviced availability of Hero Honda?
a) Easily available b) Not available
c) To some extent d) can’t say
18.Are you satisfied with the quality of service being provided?
a) Yes b) No
c) To some extent d) can’t say
19. Have you faced any problem at the time of change in section?
a) Yes b) No

20. PLEASE MENTION YOUR VALUABLE SUGGESTIONS:

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

Thanking You

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BIBLIOGRAPHY

 PHILIP KOTLER 2000/e - MARKETING MANAGEMENT

 PHILIP KOTLER &

GARY ARMSTRONG - PRINCIPLES OF MARKETING

 G.C. BERI - MARKETING RESEARCH

 www.hero.com
 www.phonexhero.com
 www.autoindia.com

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