A Project Report on

CUSTOMER BEHAVIOR (PRE-PURCHASE) ON HERO HONDA MOTORCYCLE

AT

PHOENIX MOTORS Pvt. Ltd.,

HYDERABAD

A Project report submitted in partial fulfillment of the requirement of the award of the degree of

Integrated Master of Business Administration (IMBA)

By J.N.V.S.Jahnavi Regd. No. 1234108110

Under the guidance of B.Krishna Kumari Assistant Professor GITAM Institute of Management

GITAM Institute of Management, GITAM University, Visakhapatnam, Andhra Pradesh 1

DECLARATION

I J.N.V.S.Jahnavi hereby declare that this project report entitled CUSTOMER BEHAVIOR (pre-purchase) submitted by me, under the guidance of B.Krishna Kumari, Assistant Professor, GITAM INSTITUTE OF MANAGEMENT, GITAM UNIVERSITY Visakhapatnam, is my own and has not been submitted to any other University or Institute or published earlier.

Visakhapatnam Date:

J.Jahnavi

CERTIFICATE

This is to certify that this report titled CUSTOMER BEHAVIOR (pre-purchase) successfully completed at PHOENIX MOTORS Pvt Ltd.by all the 50 respondents in partial fulfillment of the requirement for the award of the Degree of Integrated Master of Business Administration to GITAM INSTITUTE OF MANAGEMENT, GITAM UNIVERSITY, Visakhapatnam is a bona-fide work carried out by her under my guidance.

Visakhapatnam Date:

B. Krishna Kumari Assistant Professor GITAM Institute of Management

ACKNOWLEDGEMENT
I express my deep sense of gratitude to Prof. K.Siva Rama Krishna Dean and Principal, GITAM Institute of Management, GITAM University, for providing with basic aid for starting the project work.

I also thank Prof.P.Sheela vice principal and Dr. M.Jyoshna Head of the Department, GITAM Institute of Management, GITAM University, for providing with basic aid for starting the project work.

I also thank B.Krishna Kumari, Assistant Professor, department of HRM, GITAM Institute of Management, GITAM University, who dedicated her valuable time for guiding and supervising the project work constantly. I also thank all the faculty members of the department for encouraging me in doing this.

Visakhapatnam Date:

J.Jahnavi

CONTENTS

Page no.

I. Theoretical Framework/ Conceptual Framework A. Main Subject B. Topic Related Concept II. Present Study/Methodology A. Need of Study B. Objective of Study C. Scope of Study D. Research Design a. Data Collections b. Data Tabulation c. Analysis Method III. Organization Profile A. Industry Profile B. Organization Profile C. Topic profile in the organization IV. Analysis of the Study V. Finding, Suggestions and Conclusions A. Findings B. Suggestions C. Conclusion VI. Bibliography VII. Annexure 36 37 38 39 40-41 16-17 18-21 22-23 24-35 13 14 14 15 9-10 11-12

Executive Summary
In the growing global competition, the productivity of any business concern depends upon the behavioural aspects of customers. This topic deals with the Consumers behavior(pre-purchase) towards the products and services of Phoenix Motors Pvt Ltd, dealer of Hero Honda.

This project contains 5 sections. The 1st section contains the introduction and related concepts of the study. The 2nd section contains the methodology that is adopted in preparing this report. The 3rd section contains the organization profile. It deals with the overview of Phoenix Motors Pvt Ltd the products & services of the Hero Honda and their achievements. The 4th section deals with the analysis part of the project. The 5th section deals with the findings, suggestions and conclusion part which is very much important after the analysis is made.

List of Tables

Table Name
Age group Occupation Do you have two-wheeler If yes, which brand of motorcycle do you have If no, which one do you like to purchase What factors made you to purchase the particular one Through which media did you know about your choice of bike Who motivated you to purchase the above choice How do you rate the following two wheelers What is your opinion about Hero-Honda Company Approximately annual income level Are you satisfied with Hero-Honda

Page No.
24 25 26 27 28 29 30 31 32 33 34 35

List of charts

Chart Name
Age group Occupation Do you have two-wheeler If yes, which brand of motorcycle do you have If no, which one do you like to purchase What factors made you to purchase the particular one Through which media did you know about your choice of bike Who motivated you to purchase the above choice How do you rate the following two wheelers What is your opinion about Hero-Honda Company Approximately annual income level Are you satisfied with Hero-Honda

Page No.
24 25 26 27 28 29 30 31 32 33 34 35

SECTION 1: Theoretical Framework

A.Main subject:
Customer is the king. Without understanding the customer preference perfectly it is quite difficult to make him satisfy. As we know the one who is satisfied more brings long-term value for organization. A customer is an essential part of the business and should not be considered as an outsider. My study tells about how a customer considers all the factors before making his/her purchase of Hero Honda bikes. The complete study tells about Customer behavior (Pre-purchase) toward the Hero Honda bikes.

The modern business is placed in a very complex and intricate environment.The constraints and opportunities provided by the nature of the economy and the economic system, social system, geographical and ecological conditions, demographic factors etc have profound impact on the business. The type of product to employed, the way of the business should be recognized, the technology to be adopted etc Are influenced by the environment factors. For formulating appropriate business strategies, one should therefore, has proper understanding of the marketing environment. Marketing is the managerial process by which products are manufactured accordingly to the needs and requirements of the customers and after production their ownership is passed on to final consumers and for whom it is produced. Still the management is to be ensured whether the consumer wants are satisfied. In this way marketer's work starts long before the organization's produced work starts and continues long after their sales are consummated. During this long way marketer has to execute various activities. He is involved in identifying and studying consumer needs and desires, developing products concepts, designing product arranging for the distribution, creating effective marketing communications to test the consumer know about the products 9

availability. Purchasing the most efficient media for the commercial usage, monitoring customers' satisfaction and revising marketing plans in the light of results.

Marketing Marketing deals with customers. Marketing is managing profitable customer relationships. The twofold goal of marketing is to attract new customers by promising superior value and to keep and growing current customers by delivering satisfaction. Sound marketing is critical to the success of every organization. Marketing Management The application, tracking and review of a company's marketing resources and activities. The scope of a business' marketing management depends on the size of the business and the industry in which the business operates. Effective marketing management will use a company's resources to increase its customer base, improve customer opinions of the company's products and services, and increase the company's perceived value. Marketing Management Orientations Marketing management wants to design strategies that will build profitable relationships with target consumers. But which philosophy should be used in designing such strategies? Here are five such philosophies. Remember that all these philosophies or concepts are from the sellers point of view: 1.The Production Concept: According to the production concept, consumers will favor products that are affordable and available. Therefore organizations should increase their production and distribution efficiency. 2.The Product Concept: According to the product concept, consumers favor those products which offer high quality, performance and innovative features. Therefore, marketing strategy should focus on continuous product improvement. 3.The Selling Concept: According to selling concept, consumers will not buy the products unless the firm undertakes large-scale selling and promotion effort. Therefore, the aim is to sell what the company makes rather than what the market wants. 4.The Marketing Concept: According to this concept, achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than the competitors.Therefore this is a customer-centered concept. The job is not to find the right customers for your product but to find the right product for your customers. The selling concept is an inside-out perspective where the focus is the companys existing products. But the Marketing concept is an outside-in perspective where the focus is the customer needs.

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B. Topic related concepts: Customer behaviour

The term customer behavior refers to the behavior that customers display in searching for, using, evaluating and disposing of products and services that they expect will satisfy their needs. The study of consumer behavior is the study of how individuals make decisions to spend their available resources on consumption related items, it includes the study of What they buy Why they buy it When they buy it Where they buy it How often they buy it and How often they use it. Customer behavior research goes far beyond these facts of consumer behavior and considers the uses consumers make of the goods they buy and their subsequent evaluations. In addition to studying consumer uses and post purchase evaluations of the products they buy, consumer researchers also are interested in how individuals in how individuals dispose of their once new purchases.

Pre-purchase
Pre-purchase information will be defined as a series of data processed according to consumerspecific purposes. Consumers have special characteristics that recognize optimal information from resources and consumers act depending on their own given situation. . In particular, the ability to collect product information and make comparisons between the different product offerings from different providerspossibly across national and currency boundariesis often viewed as one of the main competitive challenges of e-shopping. To enhance consumer prepurchase information processing, companies offer other information sources to consumers. 11

Fixated customer behaviour

Like materialism, Fixated consumption behavior is in the realm of normal and society acceptable behavior. Consumers do not keep their objects or purchases of interest a secret: rather, they are frequently displaying them, and their involvement is openly shared with others.

Compulsive customer behaviour

Consumer who is compulsive has an addiction; in some respects they are out of control and their actions may have damaging consequences to them. Example of compulsive consumption problems is uncontrollable gambling, drug addiction; alcoholism, and various food and eating disorders. To control or possibly eliminate such compulsive problems generally requires some type of therapy or clinical treatment.

Information search and decision making

Customerss engage in both interna land external information search. Internal search involves the consumer identifying alternatives from his or her memory. For certain low involvement products, it is very important that marketing programs achieve top of mind awareness. For example, few people will search the Yellow Pages for fast food restaurants; thus, the consumer must be able to retrieve ones restaurant from memory before it will be considered. For high involvement products, consumers are more likely to use an external search.

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SECTION 2: Methodology
A.Need of the study:
Consumer behaviour is needed for the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology,social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

The need of customer behaviour study is based on consumer buying behaviour, with the
customer playing the three distinct roles of user, payer and buyer.

Social functions can be categorized into social choice and welfare functions.The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers.

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B.Scope of the study:

The scope of study Customer behavior ( Per-purchase) on motor cycle market with reference to Phoenix Motors, Habsiguda, Hyderabad, authorized dealer for selling the Hero Honda Motors cycles, has been chosen to study the Customer behavior ( Per-purchase). The study was undertaken to study the customer behavior of the motor vehicle. This included the study of various factors effecting the customer buying decision, comparison of the various brands available in the market, different media used by the company to advertise their brand etc. This study enables the company to look into various effecting the purchase from the consumer point of view. This in turn will help the company to deliver their products to maximum satisfaction of the consumer and it will also enable the company to make the consumers aware about its products in clear and better way.

C.Objectives of the study:

The main objective was to study the Customer behavior towards Motor vehicle with special reference to Hero Honda Motorcycles in the city of Hyderabad. The various sub objectives were to find out the following: To analyze customer perception towards Hero Honda Motor Cycles. The factors effecting the consumers buying decision regarding the purchase of Hero Honda. To assess the level of satisfaction from Hero Honda.

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D.Research design: Data collection method:

Data was collected through the administration of a questionnaire prepared for the purpose of the study. The questionnaire involved 50 number of questions enquiring about age groups, brand preferences for their purchase, conditions considered to make particular purchase, which media created awareness etc

Data tabulation:
Data was tabulated in the form of options, number of respondents, percentage according to the response of the customers to the questions asked.

Analysis method:

Data was analyzed in terms of percentages and presented graphically in the form of Pie chart . Intrepretation was also given in the analysis.

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SECTION 3: Organization profile

A.Industry profile:
The Indian automobile industry seems to come a long way since the first car that was manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the country contributing majorly to the economy of India. It directly and indirectly provides employment to over 10 million people in the country. The Indian automobile industry has a well established name globally being the second largest two wheeler market in the world, fourth largest commercial vehicle market in the world, and eleventh largest passenger car market in the world and expected to become the third largest automobile market in the world only behind USA and China. The growth of the Indian middleclass along with the growth of the economy over the last few years has resulted in a host of global auto giants setting their foot inside the Indian Territory. Moreover India also provides trained manpower at competitive costs making the country a manufacturing hub for many foreign automobile companies. India proves to be a potential market as compared to most of the other countries which are witnessing stagnation as far as automobile industry growth is concerned. A recent research conducted by the global consultancy firm Deloitte says that at least one Indian automobile company will feature among the top six automobile companies that will dominate the car market by 2020. The Indian automobile industry proved to be in good shape last year even after the economic downturn. This was majorly due to the fact of renewed interest shown by global automobile players like Nissan Motors which consider India to be a potential market. As far as authorized dealer networks and service stations are concerned Maruti Suzuki is the most widespread. The other automobile companies are also showing rapid progression in this field. Indian Automobile Export market India is a very favorable market for small cars be it production, sales or export. Since the Indian automobile industry is the largest manufacturer of small cars companies like Hyundai and Nissan Motors export about 2,40,000 and 2,50,000 annually. India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. The Indian automobile

16

exports registered a 22.30 percent growth in the year 2009. The growth trend was as follows: Two Wheelers- 32.31 percent, Commercial Vehicle - 19.10 percent and Passenger Cars grew by - 19.10 percent. Key automobile manufactures in India

Maruti Udyog General Motors Ford India Limited Eicher Motors Bajaj Auto Daewoo Motors india Hero Motors Hindustan Motors Hyundai Motors India Limited Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Limited

Indian Automobile Industry Growth 2009 Gaining from Government stimulus packages, more demands and lower interest rates on automobile loans the Indian automobile industry witnessed a phenomenal growth of 26.41 per cent in the year 2009. Segment wise cars posted a growth of 25.10 percent and two wheelers sales grew by 26 percent. The year 2009 actually turned out to be one of the best years in the history of the automobile industry in India. If the trend continues the same way then Indian will soon become the second fastest growing automobile market in the world only after China. Domestic Market Share for 2009 - 2010 Automobiles Passenger Cars Commercial Vehicles Two Wheelers Two Wheelers Market Share 15.86 % 4.32 % 3.58 % 76.23 %

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B.Organization profile:
The legend of Hero Honda what started out as a joint venture between Hero group, the worlds largest bicycle manufacturers and the Honda motor company of Japan, has today become the worlds single largest two wheeler company. Coming into existence on January 19,1984, Hero Honda motors limited gave India nothing less than a revolution on two-wheels, made even more famous by the Fill it Shut it Forget it campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry. Add to that technological excellence, an expansive dealer network, and reliable after sales service, and you have one of the most customer friendly companies. Customer satisfaction, a high quality product, the strength of Honda technology and the Hero groups dynamism have helped HHML scale new frontiers and exceed limits. In the words of Mr. Brijmohan Lall Munjal, the chairman and managing director, we will continue to make every effort required for the development of the motorcycle industry, through new product development technological innovation, and investment in equipment and facilities and through efficient management.

Today Hero Honda has managed to achieve indigenization of over 95 percent, a Honda record worldwide. Hero Honda is at present the largest- selling Indian motorcycle and the most fuel-efficient in its category the outcome of hero groups foresight and another classic example of how the group strives to provide the customer with excellence and satisfaction. Hero Honda become the first company in the country to introduce four- stroke motorcycles and set the standards for fuel efficiency, pollution control and quality. It has an excellent distribution and service network spread throughout the country. Hero Honda is the market leader in motorcycles, with sales of over 2 million motorcycles and a strong market share of 48% during 2003-04.

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Growth and development of the company:

The growth chart says it al. barely five years ago, hero Honda was selling just about 2,68,000 bikes per year. The number has since grown more than five fold, catapulting the company to not only the number one position in India but to the position of the number one two-wheeler company in the world with sales of 14,25,302 units in the fiscal ended March 2002. The company currently has a market share of a staggering 47 percent of the motorcycle segment and 35 percent of the two-wheeler market.

It was not easy though as the Indian market from the very beginning had several well-entrenched players such as Bajaj and Yamaha. However, Hero Honda (an 18-year old,36:26 partnership between Japans Hero Honda Motor Co. and Hero Group) had an edge not only because of the transfer of cutting edge technology from Honda Motors, but owing to Hero Cycles 9the worlds largest cycle manufacturer), the company distribution network was well in place.

Also, it was in the Nineties that the attitude towards bikes started undergoing a change and there was a perceptible shift away from scooters. People started realizing that motorcycles were not all that heavy or dangerous. At the same time, very little newness was being offered in scooters, especially in terms of style, power and fuel efficiency. Thereby, there was a shift towards bikes due to rational, emotional and aspirational reasons. The company has a large portfolio of brands, with the money-spinners being mainly Splendor 9the worlds largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ, which established Hero Honda as an aspirational brand. The launch of CBZ got us into a different league altogether. Although the sales are just about 3,000 a month, it made us an overall bike company. However, it has not been all smooth sailing for Hero Honda. There have been some hiccups too. For example, though the company claims that sales for Splendor cut across a wide spectrum of people, Hero Honda for long did not have a bike which focused on the entry level-segment of the market. It did launch Joy last year for the economy segment, which did not get a very positive response. There were two reasons for this. First, being an entry-level product it was a overpriced by about Rs 1,000. also, that was the time when Bajaj launched its Boxer priced at Rs 29,900, making matters worse.

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However, Hero Honda was quick to make amends. It phased out Joy in less than a year, and launched Dawn as an entry-level bike. We priced it right and we believe that it will be the 21st century CD-100 for us. Dawn has received a great response and has sold 10,000 pieces in the second month itself. Meanwhile, the company may also phase out the CD-100 (popular during the 1985-1995 periods) at a later stage and replace it with Dawn. In 1999, Hero Honda conducted the largest research on two-wheelers in the country covering 50,000 households, which helped the company in drawing out its strategy. The research helped us gauge customer preferences and demand. It also gave us an estimate of demand for bikes vis--vis scooters. Hero Honda has conducted a follow-up to the research this year covering an even large spectrum of people with an emphasis on the rural market. Although the results of the survey are still being compiled, it clearly shows that demand for bikes continues in the Indian market. In fact, as per estimates, demand for bikes will continue growing in double-digit figures in the coming years.

The companys marketing and promotional strategy too has had a significant role to play in its success. Hero Hondas customer relationship programme, passport, provides various benefits to the companys customers at a nominal price of Rs 95 for three years. The benefits include a Rs 1 lakh accident insurance, points on free service prizes and tickets for events, among other things. It already has 5,00,000 members registered and hopes to cross a million in the coming year. Hero Honda is also working on setting up a call center this year to take care of things such as reminding customers about when their vehicles service is due and about schemes from the company, among other things.

Meanwhile, Hero Honda will keep up its promotional activities with emphasis on cricket and entertainment. The company claims that its Desh Ki Dhadkan campaign featuring brand ambassadors Saurav Ganguly and Hrithik Roshan has received a very good response and helped build the companys image. Last year, the company spent around Rs 90 crores on advertising and marketing. Its aim is to proactively and consistently deliver value to the customer. For instance, they recently gave Rs 1,001 off across all our models. They are giving bake to the customer after becoming successful. Most companies give discounts only when their products are not doing too well. Another reason could be the cut-throat competition in the segment with heavyweight competitors such as Bajaj, Kinetic, and TVS. There is lots of competition in the segment, especially form Bajaj. But the reason for Hero Hondas success is that they are customerfocused while other companies such as Bajaj tend to be more competitor-focused.

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However, industry analysts say competition has been hitting the company significantly over the past year. Hero Honda has only one 100cc engine powering almost all its models (including the CD-100, the Splendor, Passion, Dawn, CD-100ss). Meanwhile, the market for the 100cc + segment, especially the 110cc < 147, 1,0>segment, has been growing quickly and there are already 5-6 bikes from competing companies in the 110cc segment, but surprisingly none yet form Hero Honda. Further, Bajaj too with a series of successful launches is growing quickly in various segments. Hero Honda has also lost market share from 50 percent in September 2001 to 46.5 percent in April 2002.

However, having become the worlds largest, what will be the way forward for the company? The focus now will be on maintaining the speed and the status in the market. There are plans for new product launches and a third plant coming up soon which will take the capacity beyond the current two million per annum. The company is planning to launch two new bikes soon one towards the middle of the current year while the other one will be launched in the beginning of next year. The bikes are expected to have a capacity of 100cc-150cc and above 150cc respectively. Other launches may include a foray into the scooter segment and maybe even a two-wheeler targeted at women. They are seriously studying a foray into scooters. Even though the segment has declined, its not doing badly in absolute terms. For instance, Honda Motorcycle and Scooter India Ltd (HMSI) sells about 10,000 scooters a month in India. There are challenges ahead too for the company. The Hero groups agreement with Honda ends in 2004 after which HMSI will be free to launch its own. Brand ambassdors Hero Honda has roped in film actor Hrithik Roshan actress Priyanka Chopra. Indian Cricket players, Sourav Ganguly. Mohammad Kaif, Harbhajan Singh, Zaheer Khan, Yuvraj Singh and Virender Sehwag as its brand ambassadors. They will endorse the company products, attend corporate and brand events and help promote its we care campaign comprising safety riding, environment and friendliness. Product captions DESH KI DHADKAN FILL IT, SHUT IT, FORGET IT THE LEGENDA OF HERO HONDA GET SET GO 21

C.Topic profile in the organization:

consumer behavior is the first and foremost requirement for the successful formulation and implementation of marketing strategies. The study of consumer behavior involves the process of identifying 1) When consumer purchase 2) What they purchase 3) Where they purchase 4) How much they purchase 5) Their buying habits and motives etc. For marketers, it is most important to be sufficiently well versed in the fields of consume behavior so that they may take meaningful contribution to the development of marketing strategies. It is a fact that marketing firms use their knowledge of consumer behavior to segment markets, to design marketing strategies and to measure marketing performance. Development of consumer behavior studies is an outgrowth of the evaluation of marketing orientation. Other factors that have contributed to the development of consumer behavior studies include the fast face of new product introduction, shorter product lifecycles, the high rate of new product lifecycles, increased interest in consumer protection by private group and public policy design makers and the adoption of marketing practices by service and non-profit organizations. Of these factor, the consumers protection and awareness has been main frontline task of the government and its agencies and voluntary organizations to protect the present day consumers from all malpractice of traders. Because of the government acts and the initiatives taken by the voluntary organizations from time to time, it can be hypotheses that the present day consumers are better educated, informed with a greater sense awareness and right consumers with their behavior. Just as consumers and marketers are diverse; the reasons why people study consumer behavior are also diverse. The field of consumer behavior are also diverse. The held of consumer behavior holds great interest for us as consumers, as marketers and as scholars of human behavior. As consumers we benefit from insights into our own consumption related us to become better - that is, wiser consumers. As marketers and future marketers, it is important for us to recognize why and how individuals make their consumption decisions so that we can make better strategic decisions.

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without doubt, marketers who understand consumer behavior have great competitive advantage in their market place. As Scholars of human behavior, we are connected with understanding consume behavior: with gaining insights into why individuals act in certain consumption- related ways and with learning what external & internal influences impel them to act as they do. Indeed the desire for understanding consumption - related human behaviors has led to diversity of theoretical approaches to its study. Consumer behavior If was a relatively new field of study in the mid-to-late 1960s. With no history or body of research of its own, the new discipline borrowed heavily from concepts developed in other scientific disciplines, such as Psychology, Sociology, Social Psychology, Anthropology and Economics. Many early theories concerning consumer behavior were based on economic theory, on the notion that individuals act rationally to maximize their benefits in the purchase of goods and services. Behavior was based on economic theory, on the notion that individuals act rationally to maximize their benefits in the purchase of goods and services. Consumers often buy products not because of their attributes per se but rather because of the ultimate benefits that these attributes provide, in turn leading to the satisfaction of ultimate values. For example, a consumer may not be particularly interested in the chemistry of plastic roses, but might reason as follows:

The important thing in a means-end chain is to start with an attribute, a concrete characteristic of the product, and then logically progress to a series of consequences (which tend to become progressively more abstract) that end with a value being satisfied 23

SECTION 4: Analysis
1. Age group: a)18-25 years b)25-30 years c)30-35 years d)35 years above

Age group
18-25 years 25-30 years 30-35 years Above 35 years Total

No. of respondents
28 10 07 05 50

Percentage %
56 20 14 10 100

60 50 40 30 20 10 0 18-25 years 25-30years 30-35 years 35 years above

18-25 years 25-30years 30-35 years 35 years above

From the above table it is clear that maximum respondents of the study are following in the age group of 18-25 years i.e. 56%. The next highest group is 25-30 years i.e. 20%. The remaining are the groups of 30-35 and above 35 years having 14 and 10 %. This analysis clearly show that the age group of 18-25 and 25-30 years are playing dominant part in the study.

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2) Occupation: a) Employee b) Student c) Business d) Others

Occupation
Employees Students Business Others Total
60 50 40 30 20 10 0

No. of respondents
15 25 10 0 50

Percentage %
30 50 20 0 100

Empolyee student business others

Empolyee

student

business

others

The above table discloses the facts that the highest numbers of respondents in the study are students having 50%. The next highest numbers are Employees having 30% followed by business people having 20%.
This analysis clearly shows that students are playing dominant part in the study.

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3. Do you have two-wheeler ? a) Yes b) No

Do you have No. of respondents two-wheeler Yes 47 No 03 Total 50

Percentage %
94 06 100

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

From the above table it is clear that most of the customers are having two wheelers.

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4. If yes, which brand of motorcycle do you have ? a) Hero Honda b) Honda c) Bajaj d) Yamaha e) Others

Motor cycles Brand

No. of respondents Percentage %

27 03 08 02 05 50 54 06 16 04 10 100

Hero Honda Honda Bajaj Yamaha Others Total

60 50
Hero Honda

40
Honda

30 20 10 0 Hero Honda Honda Bajaj Yamaha Others

Bajaj Yamaha Others

From the above table it is clear that out of total 50 samples , Hero Honda is the most preferred sample with 54%. Next is Bajaj 16% ,Then Honda 6% and the remaining are Yamaha with 4% and Others with 10% respectively. From the above analysis it is clear that most of the customers who are having two wheelers are prefering Hero-Honda brand for their two wheelers.

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5. If no, which one do you like to purchase ? a) Hero Honda b) Honda c) Bajaj d) Yamaha e) Others

Do you like to purchase

Hero Honda Honda Bajaj Yamaha others Total

No. of respondents
23 09 10 04 04 50

Percentage %
46 18 20 08 08 100

50 45 40 35 30 25 20 15 10 5 0 Hero Honda Honda Bajaj Yamaha Others

Hero Honda Honda Bajaj Yamaha Others

From the above table it is clear that out of total 50 samples , Hero Honda is the most preferred sample with 46%. Next is Bajaj 20% ,Honda 18% and the remaining are Yamaha with 8% and Others with 8% respectively. From the above analysis it is clear that most of the customers who are not having two wheelers are also interested in Hero-Honda brand for their two wheelers. 28

6. What factors made you to purchase the particular two wheeler ? a) Mileage b) Price c) Pick-up d) Style e) Maintenance f) Resale

What made you to purchase

Mileage
Price Pick up Style Maintenance Resale

No. of respondents
17 03 05 10 12 03 50

Percentage %
34 06 10 20 24 06 100

Total
40 35 30 25 20 15 10 5 0

Mileage Price Pick-up Style Maintenance Resale

The above table shows that out of total 50 samples ,Milage is the most preferred sample with 34% and maintenance 24%, style is 20%, pick-up is 10%, price and resale is 6%. From the above analysis it is clear that most of the customers are considering mileage factor in making their two wheeler purchase.

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7. Though which media did you know about your choice of bike ? a) TV b) Newspaper c)Magazines d) Friends

Age group
TV News papers Magazines Friends Total

No. of respondents
09 04 01 36 50

Percentage %
18 08 02 72 100

80 70 60 50 40 30 20 10 0 T.V. News paper Magazines Friends

T.V. News paper Magazines Friends

The above table discloses that the maximum respondents are aware of motorcycles through their friends with 72%. The next maximum is television 18%.Then next through news papers and magazines with 8% and 2% respectively.

From the above analysis it is clear that most of the customers are getting awareness through friends in making their two wheeler purchase. 30

8. Who Motivated you to purchase the above choice ? a) Family b)Brand ambassador c) Friends d) Own decision

Motivated to purchase
Family Brand ambassador Friends Own decision Total

No. of respondents
10 01 14 25 50

Percentage %
20 02 28 50 100

50 45 40 35 30 25 20 15 10 5 0 Family Brand ambassador Friends Own decision

Family Brand ambassador Friends Own decision

From the above table it is clear that the majority of the customers are motivated with their own decision i.e 50% and next is friends with 28%.Then with family i.e 20% and through brand ambassador is 2%
From the above analysis it is clear that most of the customers are being motivated on their own decision in making their two wheeler purchase.

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9. How do you rate the following two wheelers ? a) Hero Honda b) Honda c) Bajaj d) Yamaha e) Others

Brand Rating No. of respondents

Hero Honda Honda Bajaj Yamaha others Total 33 03 07 05 02 50

Percentage %
66 06 14 10 04 100

10

14

Hero Honda Honda Bajaj Yamaha

6 66

others

The above table shows that customers opinion towards motorcycles of Hero Honda is 66%, Bajaj is 14%, Yamaha is 10% and Honda is 6%.
From the above analysis it is clear that maximum rating was given to Hero Honda by most of the customers.

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10. What is your opinion about Hero-Honda Company ? a) Large service network c) Low maintenance b) Good mileage d) Good models

Factors
Large service network Good mileage Low maintenance Good models Total

No. of respondents
12 21 12 05 50

Percentage %
24 42 24 10 100

45 40 35

30
25 20 15 10 5 0 Large service network Low maintenance

Large service network Good mileage Low maintenance Good models

The above table shows that the consumer expectations from Hero Honda company is that good mileage is 42%, large service network and low maintenance is 24%,good models is 10%. From the above analysis it is clear that Hero Honda is best in mileage good in large service network where as weak in maintainence and in good models by most of the customers.

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11. Approximately annual income level ? a) 1-2lakhs b) 2-3lakhs c) 3-4lakhs d) 4lakhs above

No. of respondents
1-2 lakhs 2-3 lakhs 3-4 lakhs 4 lakhs above Total 23 13 08 06 50

Percentage %
46 26 16 12 100

12 46 16
1-2 lakhs 2-3 lakhs 3-4 lakhs 4 lakhs above

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The above table shows that the income levels of the customers who use Hero Honda getting 1-2 lakhs i.e, 46%, earning 2-3 lakhs is 26%, and that to 3-4 lakhs is 16% where as people earning salary above 4 lakhs is 12%. From the above analysis it is clear that maximum customers having Hero Honda are getting an annual income between 1-2 lakhs.

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12. Are you satisfied with Hero-Honda ? if no specify reasons ? a)Yes b)No

Satisfaction
Yes No Total

No. of respondents
47 03 50

Percentage %
94 O6 100

Yes No

94

The above table shows that the level of satisfaction towards Hero Honda motorcycles by their customers is high with 94% and low with 6% respectively.
From the above analysis it is clear that maximum customers are satisfied with Hero Honda.

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SECTION 5:Findings, Suggesstions & Conclusions

Findings:
As a result of the work and the subsequent interaction with the consumers in the market an in-depth study report of Motorcycle market made, the study reveals the exact position of motorcycle companies and response of consumers to their perception too. Market condition could be observed minutely and closely enabling me to formulate my views and opinion about the market. The major observations and findings: It is found that the 18-25 years and 25-30 years are playing dominant part in this study. It is found that students are the numbers of the respondents in the study having 50%. The next highest numbers are employees having 30%. Majority of respondents 54% are owing Hero Honda followed by 16% respondents owing Bajaj. Majority of respondents 42% considers as their good mileage followed by large service network and low maintenance 24%. 52% of respondents have the opinion that mileage is good . Majority of income levels of the customers who are using Hero Honda is 1-2 lakhs 46% and 2-3 lakhs is 26%. Majority of the respondents 94% motorcycle.

feel that they are satisfied with

Hero Honda

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Suggesstions:
The following are the few suggestions from my point of view to phoenix motors regarding consumer satisfaction. More variety of models should be introduced by the company Company should focus on the brand image to protect leadership Company should focus more on style and mileage factors to promote their sales. Company should focus on improvement in mileage, after sale service as if it is an important criteria considered by respondents. Company should focus on newspapers and magazines advertisements, as it is one of the most effective sources of promotion. Company should focus on selling motorcycle at competitive price. Company should target employers, businessman as they are considered as effective segments. Company should focus on consumer preferences and should offer facilities like test ride of motor cycle and various installment schemes in order to promote the sales at maximum rate.

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Conclusion:

In the conclusion it may be said that new product creates new markets for any company. The developments of the new product make the company exists for long time future. A company can add new products through acquisition or development. I feel that the products that come out from the company should be designed in such a way that it should satisfy all the needs and wants of the consumer. Consumer survey play a very important role in the designing the products. Studying consumer perception enables marketers to predict how consumers will react to the promotional messages and to understand why they make the purchase decisions they do. Marketers realize that if they know more about the consumer decision process they can design the products and strategies that will influence the consumer more effectively.

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BIBLIOGRAPHY

WEBSITES

WWW.GOOGLE.COM WWW.WIKIPEDIA.COM WWW.HERO HONDA.COM WWW.AUTOINDIA.COM WWW.PHOENIX MOTORS.COM

NEWS PAPERS

ECONOMIC TIMES

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ANNEXURE
For drawing inputs relating to pre-purchase customer behavior: (Reference to Hero Honda bikes )
__________________________________________________________________ 1. NAME: 2. Contact No : 3. Age group:

18-25 years
4. Occupation:

25-30 years

30-35 years

35 years above

Employee

Student

Business

Others

5. Do you have two-wheeler?

Yes
6. If yes, which brand of motorcycle do you have?

No

Hero-Honda

Honda

Bajaj

Yamaha

Other

7. If no, which one do you like to purchase?

Hero-Honda

Honda

Bajaj

Yamaha

Other

8. What factors made you to purchase the particular one?

Mileage

Price Pick-up Style Maintenance Resale

9. Through which media did you know about your choice of bike?

TV

Newspaper

Magazines

Friends

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10. Who Motivated you to purchase the above choice?

Family

Brand ambassador

Friends

Own decision

11. How do you rate the following two wheelers?

Hero-Honda Honda Bajaj Yamaha Other

12. What is your opinion about Hero-Honda Company ?

Large service network Low maintenance

13. Approximately annual income level ?

Good mileage Good models

1-2lakhs

2-3lakhs

3-4lakhs

4lakhs above

14. Are you satisfied with Hero-Honda ? if no specify reasons?

Yes

No

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