mats university project

7/31/2019 Mats University Project

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ACKNOWLEDGEMENTThere are people in this world, some of them are sowonderful, that made this project become a product.I would like to thank all of them, and in particular:

First of all I would like to thanks MATSUNIVERSITY that they have given me an ampleopportunity to learn about many things basically

marketing management with Hero Moto Corps. Secondly I would like to thanks to myMarketing facility Mr. O.P. Morya. He helped mea lot in understanding this industry andcompleting this project.

Then I would like to thanks my mentor Mr. ManojKumar Sinha Who helped me to understand the

market and the Automobile industry. Then I would like to thanks my relatives that

they helped me in completing this project andhelped me in every aspect of my life.

And lastly, It is only when one make aassignment that one realizes the true power ofthe MS WORD, from grammar checks to replaceall. This assignment would not be completedwithout this software. Thank you Mr. Bill Gatesand Microsoft Corp!


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DECLARATION

I Pankaj Kumar Sinha, student of MBA 2nd

Semester,

studying at MATS University Raipur.

I hereby declare that the summer training report on

RURAL CUSTOMER PREFERENCE FORFOR TWO WHEELER is

submitted to MATS University Raipur.

Partial fulfillment of degree of Master of Business

administration is the original work conducted by me.

The information and the data given in the report is authentic to

the best of my knowledge.

This summer training report is not being submitted to any other

university for award of any other degree, diploma and

fellowship.

PANKAJ KUMAR SINHA


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PREFACEThe following project is done on the basis of my researchthat I got from site of Hero Moto Corps, Google and ourexperienced mentor Mr. Manoj Kumar Sinha.Marketing should not be looked up on in a vacuum or in isolation. It is

an essence taking a view of the whole business organization and its

ultimate objective concern for marketing must penetrate all area of the

enterprise. Market survey in todays competitive world is must for

every organization.

This project is a study of market potential of Hero Moto Corp. The

rationale behind this particular study is to find out the present market

scenario of various brand and to find out the corporate need and

perception. It is a pleasurable experience to conduct a research on

behalf of Hero Moto Corp. pertaining to the study of the Automobile

sector.

To carry out this research a sample study was pursued where the target

was made to the people of rural, urban and semi urban area. Various

statistical and analytical tools and technique are applied to ascertain

and depict the present scenario.

Conclusion and there by recommendation has been arrived at by

proper and justified interpretation of the result derived from the abovesaid analytical tools and techniques.


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INTRDUCTION

Hero Moto Corp;- (BSE: 500182. NSE: HEROMOTOCO) formerly Hero

Honda is a two wheeler manufacturer based in India. Hero Honda

started in 1984 as a joint venture between the Hero Group of India and

Honda of Japan. The company is the largest two wheeler manufacturer

in India. The 2006 Forbes 200 Most Respected companies list has Hero

Honda Motors ranked at 108.

In 2010, When Honda decided to move out of the joint venture, Hero

Group bought the shares held by Honda. Subsequently, in August 2011

the company was renamed Hero MotoCorp with a new corporate

identity.

Company profile:-

Hero is the brand name used by the Munjal brothers for their flagshipcompany Hero Cycles Ltd. A joint venture between the Hero Group and

Honda Motor Company was established in 1984 as the Hero Honda

Motors Limited At Dharuhera India. Munjal family and Honda Group

both own 26% stake in the Company. In 2010, it wa reported that

Honda planned to sell its stake in the venture of the Munjal family.

During the 1980s, the company introduced motorcycles that were

popular in India for their fuel economy and low cost. A popular

advertising campaign based on the slogan Fill it-Shut it-Forget it that

emphasized the motorcycles fuel efficiency helped the company grow


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at a double-digit pace since inception. The technology in the bikes of

Hero Honda for almost 26 years (1984-2010) has come from the

Japanese counterpart Honda.

Hero Honda has three manufacturing facilities based at Dharuhera,

Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants

together are capable of churning out 3 million bikes per year. Hero

Honda has a large sales and service network with over 3000 dealerships

and service points across India. Hero Honda has a customer loyalty

program since 2000, called the Hero Honda Passport Program.

Company performance:-

During the fiscal year 2008-09, the company sold 3.7 million bikes, a

growth of 12%over last year. In the same year, the company had a

marker share of 57% in the Indian market. Hero Honda sells more two

wheelers that the second, third and the fourth placed two wheeler

companies put together. Hero Hondas bike Hero Honda Splendor, the

worlds largest-selling motorcycle for the yers 2001-2003, selling more

than one million units per year.

Logo of Hero Honda, as the company was known till Aug. 2011


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The brand trust report published by Trust Research Advisory has ranked

Hero Honda in the 13th

position among the brands in India.

Motorcycle models

Hero Honda motorcycles

.Sleek

.Achiever

.Ambition 133, Ambition 15

.CBZ, CBZ Star, CBZ Xtreme

.CD 100, CD 100SS, CD Dawn, CD Deluxe, D Deluxe (Self Start)

.Glamour, Glamour F.I

.Hunk

.Karizma, Karizma R, Karizma ZMR FI

.Passion, Passion+, Passion Pro

.Pleasure

.Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor,

Splendor NXG, Splendor PRO

Termination of Hero and Honda Joint Venture


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Hero Honda split:-

In December 2010, the board of directors of the Hero Honda Group

have decided to terminate of the joint venture between Hero Group of

India and Honda of Japan in a phased manner. The Hero Group of India

would buy out the 26% stake of the Honda in JV Hero Honda. Under

the joint venture Hero Group could not export to international markets

(except Sri Lanka) and the termination would mean that Hero Group

can now export. Since the beginning, the Hero Group relied on their

Japanese partner Honda for the technology in their bikes. So there are

concerns that the Hero Group might not be able to sustain the

performance of the Joint Venture alone.

Hero MotoCorp

The new brand identity and logo, Hero MotoCorp, was developed by

the London firm Wolff Olins. The logo was revealed on 9 August 2011

in London, the day before the third test match between England and

India at Lords Cricket Ground.

Hero MotoCorp can now export to Latin America, Africa and West Asia.

Hero is free to use any vendors for its components instead of just

Honda-approved vendors.

Company History:-Hero Moto Corp.

(1983)

-Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed


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(1984)

-The Company was Incorporated on 19

th

January, at New Delhi. TheCompany Manufacture motor cycles upto 100 cc capacity. The

Company was promoted by Hero Cycles (P) Ltd. (HCPL).

-The company entered into a technical-cum-financial collaboration

agreement with Honda Motor Co. Ltd., Japan (HML). As per this

collaboration agreement, HML was to furnish complete technicalinformation and know-how and trade secrets and other relevant data.

-Hero Honda CD-100 is the first four stroke motorcycle to be introduced

in India in 100cc range. Its most attractive features are fuel efficiency

and its light weight.

CD-100 will be equipped with

Electronic ignition system, illuminated speedometer, 4 speed gear box,

neutral and flasher indicators, etc.

-15 No. of equity shares subscribed for by the promoters, etc. In

November, 199, 99, 985 No. of equity shares issued at par of which71,99,985 shares reserved for allotment as under:

-(i) 31, 19, 998 shares to Hero Cycles (P) Ltd., Hero Investments (P) Ltd.,

and Bahadur Chand Investments (P) Ltd.


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-(ii) 31, 20, 000 shares to Honda Motor Co. Ltd., Japan and

-(iii) 9, 59, 987 shares to friends and association of promoters.

Out of the blance 48, 00, 000 shares, 2, 40, 000 shares were reserved

for subscription by the employees of the Company and 96, 000 shares

by business associates. The remaining 44,64,000 shares were offered

at par for public subscription during November.

(1985)

-The Company embarked on its 2nd

phase of expansion of increasing its

installed capacity from 1, 20, 000 to 1, 50, 000 vehicles per annum by

the addition of several critical aliminium and steel components.

(1986)

-36, 00, 000 rights equity shares issued at par in prop. 3:10.

(1987)

-The Company offered 6, 00, 000 15% secured redeemable non-

convertible debentures of Rs 100 each for casj at par on rights basis in

the proportion 1 debenture: 18 equity shares.


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-Another 3, 00, 000 15% debentures were allotted to retain over

subscription. The debentures were to be redeemed at a premium of Rs

5 per debenture on the expiry of the 7th

year from the date of allotment

of the debentures.

-3, 75, 000 rights equity shares issued at par in prop. 3:10.

(1989)

-Tge Company introduced a new model Sleek during July.

-850 No. of equity shares forfeited.

_1990)

-The Company was planning to launch a new model motor cycle-CD 100

SS suitable to semi-rural conditions. In the domestic market the

company was reported to have a market share of 46%.

-850 forfeited shares reissued.

(1994)

-The Company proposed to expand the capacity of existing plant at

Dharuhera to 2,40,000 nos. per annum. Another plant with an Installed


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capacity of 1,50,000 nos. per annum at Gurgaon Industrial Estate was

being set up.

-The Company issued 39, 79, 500 bonus shares to the existing

shareholders in the ratio of 1:4. The Company also issued 28,557

number of fractional coupons representing 14,250 shares against which

shares hall be allotted to presenting the same for consolidation and

allotment.

-The Companys production and turnover increased to 1,83,490

motorcycles and Rs. 483.85 crores respectively due to growth in the

demand for two wheelers and declining inflation.

(1995)

-14, 420 bonus shares issued by way of consolidation of fractional

coupons.

-A new Technical collaboration Agreement has been signed with Honda

Motor Co. Ltd., Japan for the period upto the yer 2004 which includes

technology related to models of the higher Engine displacement.

-The Company allotted 39, 79, 500 No. of the Equity Shares of Rs. 10/-

each as bonus shares on 7th

February, by way of capitalization of

General Reserves.

-The Company had issued 28557No. of Fractional Coupons representing

14.250 shares against which the Shares shall be allotted on presenting

the same for consolidation and allotment.

(1997)


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-Hero Honda Motors has launched its newest motorcycle, the Street, a

100 cc bike designed for use in congested urban traffic conditions.

-Hero Honda Motors Ltd (HMC)has set up a new motorcycle plant in

Gurgaon, near Delhi for the manufacture of the Honda Super Cub 100

cc stepthro bike.

-Hero Honda has set up a new state-of-the-rt plant, heralding a new

phase of development of motorcycle industry in India, to provide the

most modern and technologically advanced production facilities.

-Hero Motors of the Rs. 1,600 crore Hero group, as part of its

globalization plan, has set up a plant in Brazil for manufacturing hero

winner scooters.

-A new step thru model Street-100 with unique feature was

launchedon 24th

January.

(1998)

-The company proposes to increase the share capital to 5 crore equity

shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares

of Rs. 100 each with power to increase or reduce it from time to time.

-The company further proposes to capitalize Rs. 19, 96, 87, 500 from

general reserve to share capital through issue and allotment of bonus

shares. Altogether, 1,99,68,750 fully paid bonus shares will be allottedand distributed to members of the company holding equity shares of

the company in the proportion of the bonus share for every fully paid

equity shares of Rs. 10 each.


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-Motorcycle major Hero Honda is considering entry into scooters in

collaboration with partners, Honda Motors, after the Japanese

company decided to walk out of Kinetic Honda, their scooter venture

with the Firodias of Pune.

-Honda Motors recently pulled out of its joint venture with the Firodias

in which it held 51 per cent equity stake.

-Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda Motor

Ltd (KHML) have signed a five-year license and technical assistance

agreement under which KHML will continue to receive the technical

knowhow, critical vehicle parts and access to Hondas markets evenafter the sale of Honda stake in KHML to Kinetic Engineering Ltd (KEL).

-The Company changed the paradigm in two-wheelers by launching the

most powerful and fast bike-CBZ(ee) with an unique feature of

Transient Power Fuel Control (TPEC) system.

-23, 962, 500 bonus shares issued in prop. 1:1.

(1999)

-Hero Honda Motors Ltd (HMC) and 20th

Century Finance Corporation

Ltd have signed a Memorandum of Understanding (MoU) for financing

of Hero Honda motorcycles.

-The company, a joint venture between Honda Motor Company of

Japan and Hero group of India to produce four-stroke motorcycles, also

aims to increase its share by 1 per cent to 38.6 per cent during the

current fiscal.


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-Leading two-wheelers manufacturer Hero Motors has formed a joint

venture with Briggs Stratton of US to develop and manufacture four-

stroke engines for mopeds and scooters in India, a top company.

-Honda Motor Company of Japan has decided to re-enter the scooter

market in India as also foray into three-wheelers in a joint initiative

with its existing joint venture company Hero Honda Motors Ltd.

(2000)

-Hero Honda Motors Ltd. and Tata Finance Ltd. Have signed a National

tie-up agreement. The company is the largest manufacture of

Motorcycles in the country.

-The Company will re-launch its Stepthro Street Smart on Baisakhi 13th

April.

-Hero Honda Motors Ltd. and (HMC), has launched an upgraded version

of the existing step-through motorcycle-the Hero Honda Street.

-The Company was ranked as the 9th

Highest Value Creator among 12industry groups within the Bombay Stock Exchange top 100 companies

over a five year period (1994-99).

(2001)

-Hero Honda Motors Ltd. has launched a new 100cc motorcycle named

Passion.

-The Company has secured shareholders approval for splitting one

equity share of Rs 10 each into five equity shares of Rs 2 each in the

ratio of 1:5.


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-Hero Honda Motors Ltd. has become the largest seller of motorcycles

amongst all Honda companies and ventures in the world by selling one

million motorcycles during the current financial year.

-Credit rating Agency Crisil has reaffirmed outstanding AAA rating

assigned to the proposed Rs 15 crore non-convertible debenture issue,

Rs 16 crore commercial paper programme and fixed deposit

programme of Hero Honda Motors.

-Promoter-Chairman of the countrys largest motorcycle manufacturing

company, Hero Honda Ltd, Brijmohan Lall Munjal has bagged the

prestigious Ernst & Young Entrepreneur of the Year (EOY) award hereon September 27.

(2002)

-Company included in the 30 companies Bombay Stock Exchange index

(Sensex)

-Becomes the worlds largest two wheeler company by selling 1.3

million vehicles in 2001

-Japanese automaker Honda Motor for the first time decides to source

motorcycles from its Indian joint venture Hero Honda to sell as Honda

brandname in Vietnam

-Royalty to the Japanese parent, Honda Motor Co, hiked to Rs 630 per

vehicle as compared to the flat royalty of Rs 200 on existing models like

Splendor and Passion

-Approves Foreign Institutional Investors (FIIs) to increase their stake

from the present 24 per cent to 40 per cent


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-Comes out as the most profitable two-wheeler company in the country

during the trailing four quarters by overtaking second-largest player,

Bajaj Auto

-Launches Ambition, a 133 cc 11 BHP vehicle

-Unveils Smart, a 75 cc step-thru

-Comes out with a free insurance scheme worth Rs 1,000 for all its bikes

-Bajaj Auto goes ahead of Hero Honda in market capitalization (m-cap)

growth in the last fifteen months

(2003)

-Achieves a landmark sales turnover of over Rs 5,000 crore during 2002-

03

-Launches its cheapest 100cc motorbike CD Dwan

-Hikes production capacity t two of its manufacturing facilities to three

lakh units

-Hero Honda and SBI Cards launch co-branded credit card for Hero

Hondas customers

-Achieves milestone by producing five million bikes from its Dharuhera

plant in Haryana

-Launches its new 223-cc, 16.8 BHP Karizma at Rs 79,000

-Joins hands with Small Industries Service Institute (SISI) to train the

unemployed youth who have finished diplomas


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-Initiates a new dealer credit system which will bring down its

receivable levels to around seven days and save the company to Rs 100

crore

-Introduces Passion Plus, new version of passion motorcycle

-Forges marketing pact with Aprilia, the Italian bike maker, to introduce

its range of motoscooters and top-end motorcycles in India

-The company has bagged two Total Customer Satisfaction (TCS)

awards.

-Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Directorand Whole-time Director of the Company in the category of Executive

Director w.e.f. April 1, 2007.

-Hero Honda is the World No. 1 for the 6th

year in row

-New Splendor NXG launched

-20 million production milestone achieved

(2008)

-Hero Honda Haridwar Plant inauguration

-New Pleasure launched

-Splendor NXG launched with power start feature

-New motorcycle model Passion Pro launched

-25 million production milestone achieved

-CD Deluxe launched with power start feature

-New Glamour launched


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-New Glamour Fi lunched

(2009)

-Hero Honda Motors Ltd has appointed Mr. Ravi Nath as an AdditionalDirector in the category of Non Executive and Independent Director

w.e.f. October 14, 2009 by the Board of Directors by way of Passing a

resolution by circulation on October 14, 2009.

-Hunk (Limited Edition) launched

-Splendor completed 11 million production landmark

-New motorcycle model Karizma-ZMR launched

-Silver jubilee celebrations.


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Company Background:-Hero Motocorp Motors

Industry name Auto-2 & 3Wheelers

House Name Hero Group

Collaborative Country Name N.A.

Joint Sector Name N.A.

Year of Incorporation 1984

Year of Commercial Production N.A.

Regd. Office

Address 34, Community

Center, Bsant Lok,

District New Delhi

State Delhi

Pin Code 110057

Tel. No. 011-

46044100/26142451

Fax No. 011-

26143321/26143198

Email:[email protected]


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Internet:http://www.heroMotoCorp.com

Auditors

A F Ferguson & Co.

Company Status

N.A.

Registrars

Name Karvy Computershare Private Ltd.

Address Plot No. 17-24, Vittal Rao Nagar, Madhpur, Hyderabad-500086,

Andhra Pradesh

Tel No.:44655000 Fax

No.:44655814

Email:[email protected] Internet:http://www.karvy.com
http://www.heromotocorp.com/http://www.heromotocorp.com/http://www.heromotocorp.com/http://www.karvy.com/http://www.karvy.com/http://www.karvy.com/http://www.heromotocorp.com/


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Management-Hero MotoCorp:-


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INDUSTRY BACKGROUND:

The two-wheeler industry thrives in developing countries especially indensely populated countries like India. The birth of the Indian two-

wheeler industry can be traced to the early 1950s, when Automobile

Products of India (API) started manufacturing scooters in the country.

While API initially dominated the scooter market with its Lambrettas, it

was Bajaj Auto Limited, which rapidly emerged as the unchallenged

leader in the scooter industry. A number of government and private

enterprises, who had entered the scooter segment, is appeared fromthe market by the turn of the century. The License Raj that existed

prior to economic liberalization (1940s-1980s) in India did not allow

foreign players to enter the market, making it an ideal breeding ground

for local player. But the Raj also hurt the growth of the industry by

imposing various restrictions.

In the mid-1980s, the government started permitting foreign

companies to enter the Indian market, through minority joint ventures.

During this period, the two-wheeler market witnessed a boom with

Japanese players like Honda, Suzuki Yamaha and Kawasaki, entering

the market through joint ventures. Foreign players quickly changed the

rules of the game. From a supplies market, it became a buyers market.

Companies tried to outdo each other in terms of style, price and fuel

efficiency. The technological expertise that the foreign collaborators

brought to the marketplace helped increase the overall quality of the

products quite significantly.


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India is the second largest two-wheeler market in the world, today. T

mats university project

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