EXECUTIVE SUMMERY A project report containing the marketing research on “Customer awareness and effectiveness of Hero Honda passport program� HHPP is a program launched by the company to build long term relations with customers & to promote the sales of original spares & services. From authorized dealer only.
It was an opportunity to learn the practical aspects of industries. I choose this topic concerned to company requirement. Hero Honda company is market leader in two-wheeler segment. And to maintain this relation they need strong relation with their customers. And achieve that company has launched this HHPP program.
Now company want to know the awareness & effectiveness of this program. So they need to know, what is the awareness level & the customer response about Hero Honda passport program was needed I collated the information by a structured questionnaire that included requirements what the company needed & the questionnaire is attached in the appendix.
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“Customer awareness and effectiveness of Hero Honda passport program”
Industrial Profile: Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Company profile: “Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940’s and turned into the world’s largest bicycle manufacturer today. Hero is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make free wheel bicycle critical components and have diversified into different ventures like product design Need for study: Industrialist and mangers, who earlier perceived management to be more of an art, have started realizing that management of business requires a more systematic and scientific approach and are looking to theory for basis management solutions. This has resulted in exhaustive R&D in business theory, which has given has given also Management Information Systems. To determine the awareness of Hero Honda passport program To get ideas for improvement from customers To know the attitude of the customers about HHPP To spares & services from authorized dealers
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“Customer awareness and effectiveness of Hero Honda passport program”
OBJECTIVES OF THE STUDY 1) To know the awareness level of customer about Hero Honda passport program. 2) To know the effectiveness of Hero Honda passport program. 3) To know the attitude of customers 4) To suggest the Ideas for improvement of Hero Honda Passport Program.
SCOPE OF THE STUDY The main purpose of the study is to know the customer awareness, effectiveness. The study is conducted in Ilkal town. This study helps the company to know the effectiveness of this program in Ilkal town at Basveshwar Motors.
METHODOLOGY The methodology is the plan structure and strategy of the investigation process that sets out to obtain answer to study. The methodology followed for the collection information are using two sources of the data namely.
Primary data The primary data will be collected through the following sources. •
Questionnaire
•
Personal interview.
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“Customer awareness and effectiveness of Hero Honda passport program”
Secondary data The Secondary data will be collected through the following sources
•
Company manual reports.
•
Company web address
Area of research: ILKAL TOWN
Sample Sample is the part of population which is used to get information to survey Sample plan:
personal interview, Questionnaire
Sample unit:
Individual Customer and Company
Sampling method:
Random sampling.
Sample size:
100
Project duration:
8weeks.
Major findings: •
The customer awareness level towards HHPP is excellent because nearly 87% of the respondents were aware of this program.
•
From the aware respondents 79% of respondents had taken the membership under this program. This shows program is effectively reaching the customers.
•
The customer awareness level about the advantages of the program is good, but there is still scope for improvement.
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“Customer awareness and effectiveness of Hero Honda passport program”
Conclusion: 1. Most of the respondents are satisfied with the HHPP at Basaveshwar Motors . 2. Nearly 90% of the respondents are aware about the HHPP. 3. From the survey it is cleared that most of the customers say that HHPP service provided by Basaveshwar Motors is at satisfactory level.
Recommendation: The Dealers should provide separate counter for HHPP to the customer at showroom. According to the respondents surveyed I found that most of the respondents get their bike service from the authorized service stations and few of respondents are still unaware of HHPP so the company should concentrate on this customers with respect to there genuine service providing to its customers. Less number of customer receive gift from this program but dealer should give attractive and useful gift give to customer.
Limitations Sample size is limited to number of customers
Since sample size is limited, hence it may not represent the entire population of the Ilkal town.
The response of customers is assumed to be true.
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“Customer awareness and effectiveness of Hero Honda passport program�
CHAPTER.2
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“Customer awareness and effectiveness of Hero Honda passport program”
INDUSTRY PROFILE HISTORY India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was the second largest two wheeler manufacturer in the world starting in the 1950’s with the birth of Automobile Products of India (API) that manufactured scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The license raj that existed between the1940s to1980s in India, did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a seller’s market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. The motorcycle segment had the same long wait times with three manufacturers; Royal Enield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only fourstroke engine at that time and took the higher end of the market but, there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS
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“Customer awareness and effectiveness of Hero Honda passport program�
Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian market
dynamics from the supply side to the demand side. With a larger selection of two-wheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.
Hero Honda Motorcycle Ltd.
Type Public company BSE:HEROHONDA M Founded January 19, 1984 Location India Key people Brijmohan Lal Munjal (Chairman and Managing Director) Industry Automotive Products Motorcycles, Scooters Revenue
7,536 crores Rs 2007-2008
Website www.herohonda.com
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Hero Honda Motorcycles Limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint venture that began in 1984 between the Hero group of India and Honda from Japan. It has been the world's biggest manufacturer of 2-wheeled motorized vehicles since 2001, when it produced 1.3 million motorbikes in a single year. Hero Honda's Splendor is the world's top selling motorcycle. Its 2 plants are in Dharuhera and Gurgaon, both in Haryana, India. It specializes in dual use motorcycles that are underpowered and very fuel efficient
Company Profile: “Hero”, is the brand name used by the Munjal brothers in the year 1956 with the flagship company Hero Cycles. The two-wheeler manufacturing business of bicycle components had originally started in the 1940’s and turned into the world’s largest bicycle manufacturer today. Hero is a name synonymous with two-wheelers in India today. The Munjals roll their own steel, make free wheel bicycle critical components and have diversified into different ventures like product design. The Hero Group philosophy is: “To provide excellent transportation to the common man at easily affordable prices and to provide total satisfaction in all its spheres of activity”. The Hero group vision is to build long lasting relationships with everyone (customers, workers, dealers and vendors). The Hero Group has a passion for setting higher standards and “Engineering Satisfaction” is the prime motivation, way of life and work culture of the Group. In the year 1984, Mr. Brijmohan Lal Munjal, the Chairman and Managing Director of Hero Honda Motors (HHM), headed an alliance between the Munjal family and Honda Motor Company Ltd. (HMC). HHM Mission Statement is: “We, at Babasabpatilfreepptmba.com
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Hero Honda, are continuously striving for synergy between technology, systems, and human resources to provide products and services that meet the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium”. This alliance became one of the most successful joint ventures in India, until the year 1999 when HMC had announced a 100% subsidiary, Honda Motorcycle & Scooter India (HMSI). This announcement caused the HHM stock price to decrease by 30 percent that same day. Munjal
had to come up with some new strategic decisions as, HMSI and other foreign new entry companies were causing increased intensity of rivalry for HHM.
Back Ground: India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheelers in the country. India was the second largest two wheeler manufacturer in the world starting in the 1950’s with the birth of Automobile Products of India (API) that manufactured scooters. API manufactured the Lambrettas but, another company, Bajaj Auto Ltd. surpassed API and remained through the turn of the century from its association with Piaggio of Italy (manufacturer of Vespa). The license raj that existed between the1940s to1980s in India, did not allow foreign companies to enter the market and imports were tightly controlled. This regulatory maze, before the economic liberalization, made business easier for local players to have a seller’s market. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Babasabpatilfreepptmba.com
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“Customer awareness and effectiveness of Hero Honda passport program�
Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. The motorcycle segment had the same long wait times with three manufacturers; Royal Enield, Ideal Jawa, and Escorts. Royal Enfield made a 350cc Bullet with the only fourstroke engine at that time and took the higher end of the market but, there was little competition for their customers. Ideal Jawa and Escorts took the middle and lower end of the market respectively. In the mid-1980s, the Indian government regulations changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two-wheeler market changed with four Indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian market dynamics from the supply side to the demand side. With a larger selection
of two-wheelers on the Indian market, consumers started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, prices, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global counterparts.
BUSINESS GROWTH The business growth of Hero Honda has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2008 they had sold 110 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the Babasabpatilfreepptmba.com
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record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. The Hero Group has done business differently right from the start and that is what has helped them to achieve break-through in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors: Just-in-Time The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date. This is the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle.
Dealer Network: The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also Babasabpatilfreepptmba.com
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competitor action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours.
Financial Planning: The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover. Quality: Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto
Strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes.
Diversification: Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward integration in its manufacturing activities Babasabpatilfreepptmba.com
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“Customer awareness and effectiveness of Hero Honda passport program”
has been ample in the Group's growth and led to the establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other component-manufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 1000 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development. Further expansion is expected in the areas of Insurance and Telecommunication. The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by an culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customers. SALES PERFORMANCE Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the year 2008 – 09. For the year ending March 2009, the company achieved cumulative sales of 9,39,682 units. During the corresponding period last Financial Year, the company had recorded sales of 8,86,574 units in the year ending March 2008.
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An Environmentally and Socially, Aware Company At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a 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 programs but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business: businesses 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 of Mr.Brijmohan Lall Munjal, CMD.
Mission Statement: “We, at Hero are continuously for synergy between technology, systems, and human resources to provide products and services that the quality, performance, and price aspirations of our customers. While doing so, we maintain the highest standards of ethics and societal responsibilities, constantly innovate products and processes, and develop teams that keep the momentum going to take the company to excellence in the new millennium”.
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Board of Directors: Chairman: Mr. Brijmohan Lall Munjal Managing Director: Mr. Pawan Munjal Joint Managing Director
Mr. Miki Yamamoto
Director
Mr. Satyanand Munjal
Director
Mr. Om Prakash Munjal
Director
Mr. Satoshi Toshida
Director
Mr. Koji Nakazono
Director
Mr. S P Virmani
Director
Mr. N N Vohra
Director
Mr. Pradeep Dinodia
Director
Gen. (Retd.) V P Malik
Director
Mr. Analjit Singh
Director
Dr. Pritam Singh
Director
Dr. Basaveshwar Laxman Kelkar
Director
Ms. Shobhana Bharlia
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Milestones of Hero Honda Company 1984: Company Incorporated Technical collaboration signed Foundation stone laid. 1985: First motorcycle (Model CD 100) produced 200 motorcycles per day production. 1986: Quality circles launched. 1987: Engine plant stated 1,00,000th Motorcycle produced. 1988: Hero Honda Family club formed at Gurgaon 200,000th motorcycle produced. 1989: Sleek model Introduced 300,000th Motorcycle produced. 1990: 400,000th Motorcycle produced Pegasus Award from Digest for campaigning ‘One Liter Road’ 1994: Splendor model introduced 10,00,000th motorcycle produced. 1995: National Award for Outstanding contribution to the Development of Indain Scale Industry (NSIC Award presented by president of India) 1996: Hero Honda becomes first company to serve Army, Navy & Air Force with its 100cc motorcycles 1000 motorcycles per day production stated. 1999: Best productivity Award for the best performance in Automobile & Tractor Sector by National Productivity council presented by Vice President of India. 2000: Splendor declared world No. one largest selling signal two wheeler model. Passport Program – Customer Relation Program launched 2001: Winner of the Review 200- Asia’s Leading Companies Award (9th Rank amongst top 10 Indian Companies) passion model launched Achieved OM – One million production in one single year.
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2002: Winner of the Review 200- Asia’s Leading Companies Award (4th Rank amongst top 10 Indian Companies) 2003: Winner of the Review 200- Asia’s Leading Companies Award (3 rd Rank amongst top 10 Indian Companies) 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. 2005: New motorcycle model - "Super Splendor" introduced,New motorcycle model - "CD Deluxe" introduced, New motorcycle model - "Glamour" introduced,New motorcycle model "Achiever" introduced
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ORGANISATION PROFILE OF ILKAL
Hero Honda Motorcycle Ltd.
Dealer Name
Basaveshwar Motors Ilkal
Started
Jan 2009
Location
Ilkal
Key people
B.Maratad
Industry
Automotive
Products
Motorcycles
Sales Owner
891 units -2009 Iranna B Maratada
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PRODUCT PROFILE
Following are the products of Hero Honda: 1. Splendor+ 2. Karizma 3. CBZ 4. Ambition 135 5. Passion + 6. CD-Dawn 7. Pleasure 8. Super Splendor 9. Glamour 10. CD Deluxe 11. Achiever 12. Glamour FI 13. CD100SS
Hero Honda CD-dawn
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Hero Honda CD-Deluxe
Hero Honda Splendor Plus
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Hero Honda Splendor NXG
Hero Honda Passion Plus
Hero Honda Super Splendor
Hero Honda Glamour
Hero Honda CBZ Xtreme
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Hero Honda Hunk
Hero Honda Pleasure
Hero Honda Achiever
Hero Honda Karizma
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BUSINESS GROWTH The business growth of Hero Honda has been phenomenal throughout its early days. The Munjal family started a modest business of bicycle components. Hero Group expanded so big that by 2002 they had sold 86 million bicycles producing 16000 bicycles a day. Today Hero Honda has an assembly line of 9 different models of motorcycles available. It holds the record for most popular bike in the world by sales for Its Splendor model. Hero Honda Motors Limited was established in joint venture with Honda Motors of Japan in 1984, to manufacture motorcycles. It is currently the largest producer of Two Wheelers in the world. It sold 3 million bikes in the year 2005-2006. Recently it has also entered in scooter manufacturing, with its model PLEASURE mainly aimed at girls. The Hero Group has done business differently right from the start and that is what has helped them to achieve breakthrough in the competitive two-wheeler market. The Group's low key, but focused, style of management has earned the company plaudits amidst investors, employees, vendors and dealers, as also worldwide recognition. The growth of the Group through the years has been influenced by a number of factors: Just-in-Time The Hero Group through the Hero Cycles Division was the first to introduce the concept of just-in-time inventory. The Group boasts of superb operational efficiencies. Every assembly line
worker operates two machines simultaneously to save time and improve productivity. The fact that most of the machines are either developed or fabricated in-house, has resulted in low inventory levels. In Hero Cycles Limited, the just-in-time inventory principle has been working since the beginning of production in the unit and is functional even till date.. This is Babasabpatilfreepptmba.com
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the Japanese style of production and in India; Hero is probably the only company to have mastered the art of the just-in-time inventory principle. Ancillarisation: An integral part of the Group strategy of doing business differently was providing support to ancillary units. There are over 300 ancillary units today, whose production is dedicated to Hero's requirements and also a large number of other vendors, which include some of the better known companies in the automotive segment. Employee Policy: Another Striking feature within the Hero Group is the commitment and dedication of its workers. There is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." When it comes to workers' benefits, the Hero Group is known for providing facilities, further ahead of the industry norms. Long before other companies did so, Hero was giving its employees a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits took the form of medical checkups, not just for workers, but also for the immediate family members. Dealer Network: The relationship of Hero Group with their dealers is unique in its closeness. The dealers are considered a part of the Hero family. A nation-wide dealer network comprising of over 5,000 outlets, and have a formidable distribution system in place. Sales agents from
Hero travels to all the corners of the country, visiting dealers and send back daily postcards with information on the stock position that day, turnover, fresh purchases, anticipated demand and also competitor action in the region. The manufacturing units have a separate department to handle dealer complaints and problems and the first response is always given in 24 hours. Financial Planning: Babasabpatilfreepptmba.com
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“Customer awareness and effectiveness of Hero Honda passport program�
The Hero Group benefits from the Group Chairman's financial acumen and his grasp on technology, manufacturing and marketing. Group Company, Hero Cycles Limited has one of the highest labor productivity rates in the world. In Hero Honda Motors Limited, the focus is on financial and raw material management and a low employee turnover. Quality: Quality at Hero is attained not just by modern plants and equipment and through latest technology, but by enforcing a strict discipline. At the Group factories, attaining quality standards is an everyday practice - a strictly pursued discipline. It comes from an amalgamation of the latest technology with deep-rooted experience derived from nearly four decades of hard labor. It is an attitude that masters the challenge of growth and change - change in consumers' perceptions about products and new aspirations arising from a new generation of buyers. Constant technology up gradation ensures that the Group stays in the global mainstream and maintains its competitive edge. With each of its foreign collaborations, the Group goes onto strengthen its quality measures as per the book. The Group also employs the services of independent experts from around the world to assist in new design and production processes. Diversification: Throughout the years of enormous growth, the Group Chairman, Mr. Lall has actively looked at diversification. A considerable level of backward integration in its manufacturing activities has been ample in the Group's growth and led to the
establishment of the Hero Cycles Cold Rolling Division, Munjal and Sunbeam Castings, Munjal Auto Components and Munjal Showa Limited amongst other componentmanufacturing units. Then there were the expansion into the automotive segment with the setting up of Majestic Auto Limited, where the first indigenously designed moped, Hero Babasabpatilfreepptmba.com
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“Customer awareness and effectiveness of Hero Honda passport program�
Majestic, went into commercial production in 1978. Then came Hero Motors which introduced Hero Puch, in collaboration with global technology leader Steyr Daimler Puch of Austria. Hero Honda Motors was established in 1984 to manufacture 1000 cc motorcycles. The Hero Group also took a venture into other segments like exports, financial services, information technology, which includes customer response services and software development.
Further
expansion
is
expected
in
the
areas
of
Insurance
and
Telecommunication. The Hero Group's phenomenal growth is the result of constant innovations, a close watch on costs and the dynamic leadership of the Group Chairman, characterized by an culture of entrepreneurship, of right attitudes and building stronger relationships with investors, partners, vendors and dealers and customers.
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“Customer awareness and effectiveness of Hero Honda passport program”
SALES PERFORMANCE Hero Honda, the ‘World No.1’ two-wheeler company, continues to strengthen its leadership in the Indian two-wheeler industry, registering impressive growth in sales in the first quarter of the FY 2006 – 07. For the quarter ending June 2006, the company achieved cumulative sales of 8,32,692 units, recording a growth of 21.29% compared to the same period last year. During the corresponding period last Financial Year, the company had recorded sales of 6,86,494 units in the first quarter ending June 2005. In June 2006, the company sold 2,78,660 units registering an impressive growth of 23.26% as against 2,26,073 units in June last year. During the month, Hero Honda launched Glamour FI - India’s first Fuel Injection motorcycle. The new technology eliminates the need for a carburetor, offers the most comfortable drive and the lowest emissions, in addition to a host of other features, which is now available for the first time to Indian two-wheeler riders.
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.
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“Customer awareness and effectiveness of Hero Honda passport program�
Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business: businesses must not grow at the expense of mankind and man's future but rather must servemankind.
"We must do something for the community from whose land we generate our wealth." A famous quote of Mr.Brijmohan Lall Munjal, CMD.
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“Customer awareness and effectiveness of Hero Honda passport program�
ORGANISATION CHART
Chair person (Basaveshwar Motors)
General Manager
Accounts Department
Spare Part Department
Sales Department
Sales Executives
Servicing Department
Work Manager
Work supervisor
Head Mechanics
Mechanics
WORK ALLOCATION CHART Babasabpatilfreepptmba.com
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Work Manager
Front Officer Supervisor
Work Shop Supervisor
Name
Team A
Name
Team B
Name
Team C
Warranty In charge
Service Follow-up (post service follow-up)
Washing Supervisor
Passport program in charge
Delivery Supervisor
Computer Operator
Departmental Study: Babasabpatilfreepptmba.com
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ORGNISATION DEPARTMENTS Sales Department Service & repair Department Delivery Department RTO work Department Spare part Department Account & Billing Department SALES DEPARTMENT: In this department all the matters regarding sales& purchases are handled. Here sales executive meet the customer & brief them with the all the details required information . Here sales executive gives quotations, brief description about the required bike model.
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SERVICE & REPAIR DEPARTMENT
Work Manager
Work Supervisor
Head Mechanics
M/C C M/C C
M/C
M/C
M/C
In this department all the matters regarding service & repair are taken care. This department is well structured work supervisor address the problem & gives the customer delivery time then he passes the work slip to head mechanic. Then head mechanics distributes the work with the mechanics teams. And problem salving process is carried out.
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MAINTENANCE SCHEDULES: Proper care & maintenance are paramount for trouble free operation & optimum performance of motorcycle. Hero Honda offers 6 free services on all its motorcycles. It should avail these services within a year or as per the below mentioned km rang, whichever is earlier.
First Free Service
500-750 km
Second Free Service
2500-2800 km
Third Free Service
5000-5500 km
Fourth Free Service
7000-7500 km
Fifth Free Service
9000-9500 km
Sixth Free Service
11000-11500 km
Delivery Section:
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In this section delivery of new bikes are given to the customers. Here order is received by delivery section in charge were he cross checks the document produced by the customer then he gives the keys of the bike to the customer. Here customer can have test ride of bikes & can select the bike.
RTO work department: In this department all the matters regarding issuing of temporary registration, temporary insurance, temporary passing of new bikes are handled. All the necessary paper work required for temporary passing is handled in this department.
Spare parts department: In this department spare part required by mechanics are stored. And issued on requirement of the mechanics when necessary. In this department large stock of Hero Honda spare parts are stored to avoid customer inconvenience.
Account & Billing department: In this department the matters regarding all accounts are registered i.e. all day-to day transactions & final report is produced at the end of the financial year to the management.
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INTRODUCTION TO HERO HONDA PASSPORT PROGRAM (HHPP) HHPP was the program launched by the Hero Honda Company in year 2000 on the declaration of Splendor as world No.1 Largest selling single two wheeler model. HHPP is program launched by the company to build long tram business relation with customers. It is basically a “Customer relationship Programme” instituted especially for Hero Honda customers.
It is also program to motivate the customers to use original Hero Honda spare parts from authorized dealers & also avail the service from authorized dealers.
What is the Hero Honda Passport Programme The Hero Honda Passport Programme is a Customer Relationship Programme instituted specially for customer and dealers. Upon enrolling for the Programme, customer obtain a Hero Honda Passport, which entitles customer to a host of benefits, privileges and exclusive rewards. What's more, customer also become eligible for the Hero Honda 'Winners of the Month', which could win you a Hero Honda Splendor+, or a cash prize of Rs. 40.000!
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Who is eligible for the Hero Honda Passport? Any Hero Honda motorcycle owner or user is eligible for the Hero Honda Passport. However, it is the actual user of the motorcycle, who derives maximum benefits from it. How to apply for the Hero Honda Passport? Fill-in the Hero Honda Passport Application Form available all Hero Honda authorized dealerships/workshops. Pay requisite enrolment fee, and attach two passport-sized photographs with the application form. Your personalized Hero Honda Passport will be processed and delivered to you by your dealer, within 4 weeks of applying. What is the Hero Honda Passport?
The Hero Honda Passport is a personal identification document that would carry details such as your photograph, name, address and signature.
This document certifies your membership to the Hero Honda Passport Programme.
The Hero Honda Passport opens the door to a host of special offers that Hero Honda Motors Limited has in store for you including attractive gifts, special invitations and discounts. The Hero Honda Passport is valid for a period of 3 years.
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Benefits of owning a Hero Honda passport Some of 1 he benefits are: • Instant Benefits - A one-year or three year Free Accident. Insurance cover worth Rs 1 lakh. - Opportunity to participate in a national draw and win Rs 40,000 in cash or Splendor+ • Bike Related Benefits - Attractive gifts on reaching specific milestones. - A Special gift on your first transaction with a Hero Honda dealership or an authorized service centre -Opportunity to get a Bike service certificate that may increase the resale value of your bike. - A special 5% discount on the purchase of spares* • Lifestyle Related Benefits: - Chance to be invited to events such as movie shows, musical nights and carnivals. - Exclusive discount offers from other brands of your interest.
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How to use the Hero Honda Passport? You need to carry your Hero Honda Passport with you when you visit a Hero Honda authorized dealership/workshop. Every time you do a transaction at a Hero Honda showroom /workshop, the dealer would reward points into your passport. You are eligible to accumulate points, against purchase of spares, accessories, service and by referring friends to purchase a Hero Honda motorcycle. You can win several gifts as you accumulate points swiftly. Also, your points do not become zero after a gift collection and you can keep collecting gifts as you reach a particular milestone.
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CUSTOMER DRIVES 3 KINDS SERVICES: Before sales service i.e. providing needed information to the buyer about the product service at the time of sales: when selling process takes place, the company should take care about the quick and delivery, installation etc. After sales service when sales have been some to the customer, the company should think the customer is part of the family. So attending any emergency repair or any kind of service required should be met immediately so as to retain the customer QUALITY: It is a totally of features and characteristics of a product or service that bare on its ability to satisfy stated or implied needs. We can say that the seller has delivered quality whenever the sellers product or service meets or exceeds the customer expectations.
DISTRICUTION EFECIENCY: Management needs to search for distribution economies in inventory control, warehouse locations and transportations modes. One problems that distribution efficiency declines when the company experiences the strong sales increases. It may causes in meeting delivery dates. This leads customers to badmouth the company eventually ales fall.
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Customer Awareness The act of creating public awareness of a specific product / service in order to maximize its recognition, successful awareness strategies should define a company’s uniqueness and set it apart from competition. Quite simply, if potential customers do not know about a company they will not purchase from it. Therefore, one of the preeminent goals of any business should be to create awareness regarding their product or service, albeit in as cost-effective manner as possible.
Consumer’s tent to make purchasing decisions based on peer recommendations and direct experience, as well as traditional advertising method. This is why it is necessary to create awareness strategies out by instilling trust among consumers. This trust must be achieved through credibility rather than just a catchy advertising campaign. Promotional marketing involving one to one component proving increasingly effective at building trust and acquiring new customers.
Customer awareness is mainly depends on strategies used by promotional manager. An effective promotional method has to be used to make customer aware of the product or service.
The intention of the advertising is to spread awareness of the product/service and advertising plays vital role in the creating awareness of the product or services
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RESEARCH DESIGN Steps in Research design Define the research problem Estimate the value of Information Select the data collection method Select the measurement technique Select the sample Select the analytical approach Evaluate the ethics of the research Specify time & financial cost Prepare the research proposal
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Step 1: Define the research problem To know the awareness level & effectiveness & response towards HHPP. Management problem / opportunity clarification Hero Honda company wants to make HHPP more effective, so company want to know the present performance of this program.
Step 2: Estimate the value of the information: The value of information should exceed the expected cost. I am conducting the sample survey method, & my sample size for my research is 100 its member.
Step 3: Select the data collection method; I decided to go for survey method i.e. simple random sample using the questionnaire conducting the survey & using Dichotomous (close-ended), rating scale & open-ended questions.
Step 4: Select the measurement technique Descriptive type of research, using the questionnaire with rating scale, open & close-ended questions.
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Step 5: Select the sample The sample would be the customers of Hero Honda motorcycle within Ilkal town Step 6: Select the analytical approach: Analyzing the collected information with the help SPSS software.
Step 7: Evaluate the ethics of the research The collected information (data) will be used for salving the management problem & not for any non-ethical objectives will be addressed.
Step 8: Specify time & financial cost: Time needed is 60 days & the financial cost are; Daily expenses about 15/- per 90 days it is about 1350 = 1350/ Stationary & printing about 600/- total financial cost = 1350+800 =2150/-
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Step 9: Prepare the Research proposal: My understanding of this project is as follows: Background:HHPP is a program launched by the Hero Honda to build long term relation with customers & to promote sales of spares & services from authorized dealer. Now company wants to make this program more effective. So company wants to know present performance of this program. Purpose: The main objective is to know the awareness & effectiveness of Hero Honda passport program.
Research approach: A non-technical description of data collection method i.e. sample survey that includes customers of Hero Honda in Ilkal.
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CHAPTER.3
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Objectives: To gain familiarity with a phenomenon, event, product or service. To determine the frequency with something occurs or with it is associated with something else. To test the hypothesis of casual relationship between variables. To understand the requirement of market and formulate strategies as per the requirements. Scope:
The main purpose of the study is to know the customer awareness, effectiveness. The study is conducted in Ilkal town. This study helps the company to know the effectiveness of this program in Ilkal town at Basveshwar Motors. Methodology: The methodology is the plan structure and strategy of the investigation process that sets out to obtain answer to study. The methodology followed for the collection information are using two sources of the data namely.
Primary data The primary data will be collected through the following sources. •
Questionnaire
•
Personal interview.
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Secondary data The Secondary data will be collected through the following sources
•
Company manual reports.
•
Company web address
Area of research: ILKAL TOWN
Sample Sample is the part of population which is used to get information to survey Sample plan:
personal interview, Questionnaire
Sample unit:
Individual Customer and Company
Sampling method:
Random sampling.
Sample size:
100
Project duration:
8weeks.
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CHAPTER.4
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Table-1 1) Which Hero Honda motorcycle do you have? Please specify Models Splendor Plus Passion Plus Splendor Super Splendor C D Deluxe Other Total
Respondent 17 19 22 14 9 19 100
Percentage (%) 17% 19% 22% 14% 09% 19% 100
Graph-1
17%
19%
Splendor Plus Passion Plus Splendor
9% 19%
Super Splendor C D Delux Other
14% 22%
Interpretation: From the above graph it reveals that 22% of the respondents are splendor Users, 19% are passion plus users, 17% are splendor plus users, 14% of respondents are Super splendor users & 19% of respondents are users of other Hero Honda models.
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Table-2 2) Are you aware of Hero Honda passport program?
Option
Respondent
Percentage(% )
Yes
90
90
No
10
10
Total
100
100
Graph-2
10%
Yes No
90%
Interpretation: from the above graph it reveals that from 100 respondent 90% of the respondent were aware of the HHPP & 10% are not aware of HHPP.
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Table-3 3) Are you a member of Hero Honda passport program? Option Respondent Percentage(% ) Yes 79 79 No 21 21 Total 100 100
Graph-3
21%
Yes No
79%
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Interpretation : From the above graph it reveals that from 100 respondents 79% of the respondents were the members of HHPP & 21% of the respondents were not the member of HHPP.
Table-4 4) If yes, are you aware of advantages (gifts and benefits) of Hero Honda passport Program? Option Yes
Respondent 51
Percentage (%) 64
No Not Exactly
11 17
14 22
Total
29
100
Graph-4
22%
Yes No 14%
Not exactly 64%
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Interpretation: Form the above graph it reveals that from 79 respondent 64% of the respondents were aware of the advantages of Hero Honda Passport Program, 14% were not aware of the Hero Honda Passport Program & 22% were aware but not completely.
Table-5 5) Under which passport program you have registered. Plans
Respondent
Percentage (%)
125
19
24
175
60
76
TOTAL
79
100
Graph-5
24%
Rs125 Rs175
76%
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Interpretation: From the above graph it reveals that out of 79 respondent 24% of the respondents had registered under Rs.125 plan program & 76% of respondents had registered under Rs.175 plan program
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Table-6 6) How many times you have received gifts from this program on your points. Gifts received
Respondent
Percentage (%)
Zero
39
50
Less three times
28
35
four times
9
11
More then four times
3
4
Total
79
100
Graph-6
11%
4%
Zero 50% 35%
Less than 3 times 4 times More than 4 times
Interpretation: From the above graph it reveals that out of 79 respondent 50% of the respondents have not received the gifts, 35% have received the gifts for less than 3 times, 11% of the respondents have received the gift for 4 times & 4% of the respondents have received gifts for more then 4 times.
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Table-7 7) Are you satisfied with the advantages (gift or benefit) for your purchase of spares or service under this program? Satisfaction Level Strongly Satisfied Satisfied Nether Satisfied nor Dissatisfied Not Satisfied Total
Respondent 29 33 06 11 100
Percentage (%) 37 41 08 14 100
Graph-7
8% Strongly satisfied
14% 37%
Satisfied Not satisfied neither satisfied nor dissatisfied
41%
Interpretation: From the above graph it reveals that out of 79 respondent 37% of the respondents were strongly satisfied with the advantages for the purchase of spare parts and services, 41% of the respondents were just satisfied with the advantages, 8% were neither satisfied nor dissatisfied, 14% were not satisfied with the advantages of the program for their purchases of spare and services from authorized dealer.
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Table-8 8) Are you aware of Insurance scheme in Hero Honda passport program? Option
Respondent
Percentage (%)
Yes
59
75
No
20
25
Total
79
100
Graph-8
25%
Yes No
75%
Interpretation: From the above graph it reveals that out of 79 respondent 75% of the respondents were aware of the insurance scheme & 25% of the respondents were not aware of the insurance scheme in Hero Honda Passport Program.
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Table-9 9) Do, you feel program works according to its promises. Option
Respondent
Percentage (%)
Yes
49
62
No
18
23
Not exactly
12
15
Total
79
100
Graph-9
15%
Yes No
23% 62%
Not exactly
Interpretation: From the above graph it reveals that out of 79 respondent 62% of the respondents feel program works according to its promises 23% of respondents program does not work according to its promises and 23% of respondent feel program works but not exactly according to its promises.
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Table-10 10) Dose this program influence you to go for repeated purchase of spares & services from Hero Honda authorized dealers. Influence level
Respondent
Percentage(%)
Strongly influence
17
22
Influence
46
58
Neither influence nor not influence
11
14
Not influence
05
06
Total
79
100
Graph-10
6% 22%
14%
Strongly Influences Influences neither influences nor not influences Not influences
58%
Interpretation: From the above graph it reveals that out of 79 respondent 22% of the respondents are strongly influenced by this program in their purchase of spares and services, 58% of respondent are just influenced by this program, 14% of respondent are neither influenced nor not influenced and 6% of respondents are strongly not influenced by the program in their purchase of spare parts and services. Babasabpatilfreepptmba.com
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Table-11 11) What is your overall rating of this program? Attitude Excellent Good Bad Total
Respondent 33 36 10 79
Percentage (%) 42 45 13 100
Graph-11
13%
42%
Excellent Good Bad
45%
Interpretation: From the above graph it reveals that out of 79 respondent 42% of the respondents said program is excellent, 45% of respondents said program is good & 13% of respondents said program is bad
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Table-12 12) Are you satisfied with the service of basaveshwar motors under passport program? Option Yes No Some what Total
Respondent 61 09 09 79
percentage % 78 11 11 100
Graph-12
11% 11% Yes No Some what
78%
Interpretation: From the above graph it reveals that out of 79 respondent 74% of the respondents are satisfied with the basaveshwar Motors service provided in Hero Honda Passport Program and 11% of respondents are not satisfied with the service proved by the Basaveshwar Motors and 11% of respondents are somewhat satisfied with the service provided by Basaveshwar Motors in Hero Honda Passport Program.
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13) Reasons behind not being aware of the Hero Honda Passport Program. •
Respondents were not interested in scheme and offers.
•
Respondents did not come across any advertisement of Hero Honda Passport Program.
•
Hero Honda Passport Program was not communicated to them by Basaveshwar Motors.
14) Reasons behind aware but not being the member of the Hero Honda Passport Program. •
Respondents were not interested in Hero Honda Passport Program.
•
Respondents’ bikes were old so they were not interested in Hero Honda Passport Program. *********************
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FINDINGS Project Finding:
•
The customer awareness level towards HHPP is excellent because nearly 87% of the respondents were aware of this program.
•
From the aware respondents 79% of respondents had taken the membership under this program. This shows program is effectively reaching the customers.
•
The customer awareness level about the advantages of the program is good, but there is still scope for improvement.
•
Major of the respondent have registered under Rs.175 plan that is 78% of respondent have registered under 175 plan. This shows that company will be contact with 78% customers for 3 years. This will help in building good relation with the customers.
•
Major of the customers are using this program because 43% of respondents have received the gifts for more then 4 time, 27% of respondent have received the gift for 4 times on this collected pts this means every member has done the purchase of at list Rs.2000 from the authorized dealers. But this is still scope for improvement. This shows effectiveness of the program.
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•
41% of the respondents are satisfied with the advantage (gift) on this purchase & 37% of respondent are strongly satisfied. This shows that improvement in gifts returns is required.
•
Awareness level regarding Insurance schemes in HHPP is excellent because nearly 75% the respondents are aware of this scheme benefit.
•
HHPP works according to its promises because 62% respondents said yes it works according to its promises this also shows the effectiveness of the program.
•
Customers are influenced by this program to go for repeated purchase of spare parts & services from authorized dealers of Hero Honda because 46% respondent said is influence & 17% of respondent said it strongly influence them to go repeated purchase of spare parts & services from authorized dealers. This show program is effective in attracting the customers towards Hero Honda authorized dealers.
•
The attitude towards HHPP is good. Because 45% of respondents program is good & 42% of said program is excellent.
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•
Customers are satisfied with the service provided by Basaveshwar Motors in HHPP. Because 78% of respondent said they are satisfied with the services provided by Basaveshwar Motors in HHPP.
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SUGGESTIONS & RECOMMENDATION According to the study conducted, it shows from the analysis and findings that majority of Customer are satisfied with the HHPP Scheme. So I wish to give the following recommendations to the management. The Dealers should provide separate counter for HHPP to the customer at showroom. According to the respondents surveyed I found that most of the respondents get their bike service from the authorized service stations and few of respondents are still unaware of HHPP so the company should concentrate on this customers with respect to there genuine service providing to its customers. Less number of customer receive gift from this program but dealer should give attractive and useful gift give to customer.
HHPP has been able to create good image in the mind of customer. Though the customer response is good about HHPP but there should be continuous improvement in the customer care and follow up service. Effective HHPP service and attaining to complaints of customers immediately will satisfy them, this satisfaction will act as psychological motivation, indirectly will reflect to sales of Basaveshwar Motors.
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CONCLUSION:
The Basaveshwar Motors is one of the most prompt service center in Ilkal town, it should give more effective HHPP service to its customers through adopting good relation with Dealer. The organization should search for the opportunities to grow in competitive world.
1. Most of the respondents are satisfied with the HHPP at Basaveshwar Motors .
2. Nearly 90% of the respondents are aware about the HHPP.
3. From the survey it is cleared that most of the customers say that HHPP service provided by Basaveshwar Motors is at satisfactory level.
4. Basaveshwar Motors having good reputation in lkal Market.
5. Many customer are aware about HHPP, but they don’t know how to utilize the Passport service properly.
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CHAPTER.5 And
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ANNEXURE
QUESTIONNAIRE Dear Sir /Madam, 1. Which Hero Honda motorcycle do you have? Please specify ----------------------------------------------2. Are you aware of Hero Honda passport programme. Yes
No
(If No Move to Q. No.14 or else continue)
3. Are you a member of Hero Honda passport programme Yes
No
(If No Move to Q. No.14)
4. If yes, are you aware of advantages (gifts and benefits) of Hero Honda passport Program. Yes
No
Not exactly
5. Under which passport programme you have registered. Rs. 125
Rs. 175
6. How many times you have received gifts from this programme on your points. Zero
Less than 3 times
4 times
More than 4 times:
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7. Are you satisfied with the advantages (gift or benefit) for your purchase of spares or service under this program. Strongly satisfied
Satisfied
Not satisfied
neither satisfied nor dissatisfied
strongly dissatisfied
8. Are you aware of Insurance scheme in Hero Honda passport program? Yes
No
9. Do, you feel programme works according to its promises. Yes
No
Not Exactly
10. Dose this programme influence you to go for repeated purchase of spares & services from Hero Honda authorized dealers. Strongly satisfied Not influences
influences
neither influences nor not influences
strongly not influences
11. What is your overall rating of this programme Excellent
Good
Bad
Worst
12. Are you satisfied with the service of Basaveshwar motors under passport programme.
Yes
No
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13. Your suggestion for improvement of this programme. ……………………………………………………………………………………………….. ……………………………………………………………………………………………….. ……………………………………………………………………………………………….. ……………………………………………………………………………………………….. ……………………………………………………………………………………………….. .................................................................................................................................................. ………………………………………………………………………………………………..
14. The reasons behind not being aware or member of this programme.
Name:Address:Gender:Occupation:-
Thank you for your Co-operation.
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BIBLIOGRAPHY
1. Website •
www.google.com
•
www.herohonda.com
2. Materials •
Books.
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