WEL COME

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Wel-Come
WEL COME
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Presentation of CASE
STUDY Presented By Sachin .
Prabhakar. MBA-II
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Consumer Buying Behaviors in Two Wheeler
industry With Special Reference to Hero Honda
Motorbike
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Movement is the essence of life change is
only constant in the movement.
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Introduction The dawn of new millennium has
pushed the world in to age of an unprecedented
velocity where loads of information travel at
supersonic speed over great distances which has
left sphere of human activity untouched . The
cyberspace has also changed the way of doing
business where consumer always supreme.Today no
business irrespective of its size can remain
indifferent to changing consumer demands.
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What is Marketing ?
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Marketing Mgmt This customer focused
philosophy is known as the marketing concept.
The marketing concept is a philosophy, not a
system of marketing or an organizational
structure. It is founded on the belief that
profitable sales and satisfactory returns on
investment can only be achieved by identifying,
anticipating and satisfying customer needs and
desires. - Drucker
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What is Consumer Behavior ?
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• Consumer Buying Behavior is the decision
  processes and acts of people involved in buying
  and using products .
• Need to understand
• why consumers make the purchases that they make?
• what factors influence consumer purchases?
• the changing factors in our society.

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Objectives of Case

• 1. To make complete analysis of the Indian two
  wheeler industries with specific preference to
  Hero Honda.
• 2. To find out awareness level of consumers
  regarding number of brands that are available in
  market.
• 3. To find out important factor influencing the
  purchase decision of buyer.

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4.To rate the product features or factors of
consumer preferences towards different
models (100 cc, 110 cc,125 cc etc). 5.To find
out post purchase behavior of the consumers about
product and brand.
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Summary of Case
Automobile industry is fastest growing in our
country it has two reasons, 1.Change of
lifestyle. 2.People from metropolitan cities are
disappointed with public transport. This case
tells about comparative study of Indian two
wheeler industry, the study based on two
hypothesis. 1.Association between the income of
consumer and the type of two wheeler owned by
him. 2.Hero Honda Company considered as market
leader in two wheeler industry.
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Both consumer and dealer survey was conducted
. The sample size for dealer and consumer was 20
and 150 respectively. The study was conducted in
Hyderabad city. Overall case shows the change in
view point of consumers towards modern bikes.
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Outlook of Two Wheeler Industry
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• India is the third largest producer after Japan
  and china, the second largest consumer after
  china.
• Two wheeler are usually classified into three
  types, they are scooters, motorcycles and mopeds.
• The major players of two wheelers in India are
  Hero Honda, Bajaj Auto, and TVS Motors.
• As these companies announced their sales for
  April 2004, it shows that
• Hero Honda sales grew sharply by 46.
• Bajaj Auto increased by 24,on other hand
• TVS Motors Decreased by 4.4.

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Current Scenario
The market has steadily moved from sellers to
buyer market . During the early nineties the auto
industry in general was under recession. After
the 1996 the industry showed a slower growth
around 22, compared to 1990-91.Whereas the
motorcycle sales increased by 77 in 2004.
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Automobile Sector Speeding Ahead!!
- Chartered Financial Analyst ( Feb-06)
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AUTO SECTOR MARKET SHARE
The two wheeler segment leads the industry with
big share of around 80
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Current Market Situation

• The two wheeler segment continues dominate the
  auto sector due to growing numbers of middle
  class consumers.
• Price discounts , Attractive easy finance
  schemes and the launch of new models at frequent
  intervals have all helped this segment increase
  its shares from 77 in FY2004 to 79 in FY2005.
• Hero Honda the market leader in two wheeler has
  record of selling more than 29 lakhs units, and
  registered an average growth of 24.6 in last
  five years period.

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• Bajaj auto followed HEROHONDA with a market
  share of 20 in the two wheeler segment.
• For FY2005, compared to 24 during the previous
  year.
• The other major automobile manufacturers TVS
  motors however is losing ground.
• Custom duty reduced by Government from 25 to 20
  will help the manufacturer to reduce expenditure
  on raw material (RM).

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Company
Hero Honda Ltd. 46
Bajaj Auto Ltd. 24
TVS Motors Ltd. 17
LML Ltd. 5
Others 8
Market Share
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Why HERO HONDA is Leading Market ?
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Company Profile
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Mission
Hero Honda, is 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, they 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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Products

• Pleasure
• CD100SS
• Karizma
• Achiever
• Splendor

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Products

• Glamour
• Passion Plus
• CD Deluxe
• CD DAWN
• Super splendor

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Products
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Products
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Products
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Products
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Products
Glamour
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Products
Pleasure
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The Legend of Hero Honda
What started out as a Joint Venture between Hero
Group, the world's largest bicycle manufacturers
and the Honda Motor Company of Japan, has today
become the World's 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.
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ANALYSIS OF CONSUMER SURVEY
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Current Status
68.57 respondent have own vehicle 31.43 do
not have own vehicle.
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Brand wise Ownership of two wheelers
66.67 of respondents have Hero Honda vehicle,
25- Bajaj vehicle, 8.33 TVS vehicle.
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Information needs for Purchasing decision
58.33 respondents depend on friends for
information 25 depend on news paper,16.67 on
television .
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Influence on the Purchase behavior of the
respondents
41.67 respondents influenced by self, 37.57
by friends 12.5 by colleague, 8.33 by spouse.
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Reasons for Brand Preference
10 dealers prefer particular brand for
margin, 20 -Price, 10 -Discount, 60 Brand
image.
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Reasons for changes in Consumer preferences

• Motor cycle prices have declined comparatively to
  scooter.
• Price in aspiration level and westernization.
• For rough and uneven roads like in rural areas,
  strong Fuel efficient motorcycles preferred by
  the consumer.

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Findings Conclusion
The following are the major findings from the
consumer survey
1.The study reveals that 88.5 of the respondents
are aware of the Various brands of the two
wheeler available in the market through watching
TV And reading news paper or magazines. 2.The
study reveals that 93.35 of the respondents can
recall the advertisement Of motorbike they have
seen recently on TV or reads in newspaper or
magazines.
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3. It is found that 68.57 of the respondents own
their own two wheelers Whereas remaining 31.43
of the respondents do not own two wheelers. 4.
It is found that 66.67 of the respondents own
Hero Honda,25 of the Respondents own Bajaj,
8.33of the respondents own TVS. 5. It is found
that 75 of the respondents have the two wheeler
since 1 to3 years 9.72of the respondents have
two wheeler since lt 1 year, 8.33 of the
Respondents own two wheelers since gt5years and
6.94of the respondents own it since 3 to 5
years.
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6. The influencer in the purchase decision of the
respondents is himself. 7. The source of the
information preferred by the respondents for
buying the two wheeler is collected from the
friends and associates. 8. It is found that 90
of the respondents are satisfied with the
performance ,Maintenance and after sale services
of the dealers ,Most of the respondents opined
that the maintenance cost of their Two wheelers
are affordable and some expressed that
maintenance cost is high and spares cost is also
high.
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9. It is found that 71 of the respondents do not
have any plans to buy two wheeler for themselves
in future.But 29.5 have plans to buy two wheeler
in the future . 10. It is found that most of the
respondents preferred to buy HERO HONDA due to
its brand image.
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Findings from the dealers survey
1. It is found that most of the dealership is
non-exclusive type. 2. it is found that if the
dealership is of exclusive type , mostly it is
exclusive to HERO HONDA company or Bajaj
company. 3. A reason behind the dealing with a
particular brand is brand image. 4. It is found
that most of the respondents opined that
advertisement is a good enough source to improve
sales.
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5.most of the respondents opined that , the
consumer due to brand image prefer HERO HONDA
Splendor.
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Thank you!....