Srikanth Project

CUSTOMER SATISFACTION
CHAPTER-I
 INTRODUCTION
 OBJECTIVES
 NEED AND IMPORTANCE OF THE
STUDY
 RESEARCH METHODOLOGY
 LIMITATIONS
1
INTRODUCTION
Marketing as a Business Discipline:
A distinguish pioneer of marketing, Charles Coolidge Parlin was
largely instrumental in developing marketing, as a systematic business
discipline in teaching us how to go about. In an orderly purposeful and
planned way, to find and create customers; to identify and define market,
wants and preference and the intellectual and creative customer needs,
wants and preference and the intellectual and creative capacity and skill
of an industrial society; towards the design of new and better products of
new distributive concept and process.
On this contribution and similar ones of other foundation fathers of
marketing during the last half century rests the rapid emergence of the
marketing as perhaps the most advanced, certainly the most "Scientific"
of all functional business disciplines. However, Parlin also contributed as
a founding father towards the development of marketing as a social
discipline. He helped to give us the awareness, the concepts and the tools
that make us understood marketing as a dynamic process of society
through which business enterprise is integrated productively with
society's purpose and human values. It is in marketing that we satisfy
individual and social values, needs and wants - be it through producing
goods, supplying services, fostering innovation or creating satisfaction.
Marketing has its focus on the customer, that is on the individual making
decisions within a social structure and within a personal and social value
system. Marketing is then the process through which company is
integrated into society to serve human needs.
Meaning:
Marketing is a comprehensive term and it includes all resources
and a set of activities necessary to direct and facilitate the flow of goods
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and services from producer to consumer in the process of distribution.
Businessman regards marketing as a management function to plan,
promote and deliver products to clients or customer.
Definitions of Marketing:
"Marketing is a social and managerial process by which individuals
and group obtain what they need and want through creating, offering and
exchanging products of value with others".
-Philip Kotler
"Marketing consists of all activities which a company adopts itself
to its environment-creativity and profitability".
-Roy Corey
The "American Marketing Association" defines marketing as the
process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and service to create exchanges that satisfy
individual and organisational objectives.
"Paul Mazur" defines marketing as a creation and delivery of a standard
of living to society. This definition catches the real spirit of the marketing
process. It has consumer orientation. It duly honors the concept, which
indicates a shift from product to consumer orientation, that is fulfillment
of customer needs and desire.
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The automobile industry in India is growing is at rapid rate of 32%.In
general the Two wheeler segment is growing at the rate of 18%.The
global Manufacturers like Honda, Yamaha and Suzuki have entered
Indian market in collaboration with some Indian companies. The motor
cycle segment has become the core of two wheeler market with new
launches like TVS Sport, Hero Honda Extrme,, Honda Shine,Bajaj
Pulsar, Suzuki Zeus and so on and there are many still to come. This
shows the potential of Indian Two wheeler market and low cost of
production will make India a major Auto manufacturing hub. As the
launch of various models increase there is an increase need to understand
customer’s perception and they various attributes in selecting specific
vehicle.
TVS is unique from all other two wheeler company in the country
because it is without any foreign collaboration. The company was
established by T.V Sundaram Iyengar in the year 1911 and was primarily
into the production of mopeds. TVS Motor Company Limited, the
flagship company of the USD 2.2 billion TVS Group, is the third largest
two-wheeler manufacturer in India and among the top ten in the world,
with an annual turnover of over USD 650 million. The company has
many first to its credit like the introduction of the first indigenous moped
and a 100 cc motorcycle in collaboration with Japanese auto giant Suzuki.
When the collaboration ended in 2003, many thought that the company
would die a natural death due to the exit of the foreign collaborator.
However the company proved its detractors wrong by introducing the
TVS Victor and rest as they say is history.
It is the third largest two wheeler manufacturer in India and has reached
tenth position among the world listing. Its dealer and customer network is
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widely spreaded in India which includes over 500 dealers and 2500
customers.
This company has been honored with The Deming Prize' for Total
Quality Management (TQM) with the hallmark of Japanese Quality.
TVS Apache- Bike of the Year 2006 by Business Standard Motoring.
International certifications like QS 9000, ISO 9000 and TS 16949.
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OBJECTIVES
“Customer Satisfaction: Comparative analysis of TVS Star City
with Hero Honda Splendor”
SUB OBJECTIVES:
1. To study the various aspects customer look in for in their choice of
specific Two Wheeler bikes.
2. To assess the level of satisfaction of customer based on their
experience by the usage of their bikes.
3. To know the expectations of the customer.
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Need and Importance for the study:
The topic I have chosen for my project work is “Customer satisfaction: A
Comparative study of TVS Star City and HeroHonda Splendor”. The
project report contains various aspects that customers look in for, specific
two wheeler bikes. This report helps to know the different parameters
customer considered while going for purchasing two wheeler bikes and to
find out the satisfaction level of customers of two wheeler bikes & if they
are dissatisfied, to find out the reason for the same.
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The sources of secondary data including the following
 Internet
www.India automobile.com
www.Tvs motors.com
www.Hero Honda motors .com
 Newspaper : Business line.
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Sampling Design
 Population: Two wheeler bike users of Tvs star city and
Hero Honda Splendor.
 Sampling Frame: Two wheeler owners of Hyderabad City.
 Sample Unit: Bike User.
 Sampling method: Non Probabilistic.
Sample size : 100 ( 50 TVS Star city user and 50 Hero Honda
Splendor user )
SCOPE OF THE STUDY
1. This study is restricted to the Hero Honda.

2. Hence the findings and conclusions drawn therein cannot be expected to
be same elsewhere.
3. The data collected from the corporate offices is assumed to be very
correct.
Therefore the above scope has to be taken into account while considering the
findings of the study for the policy decision. In other words, the information brought
out in the present study is only indicative and might not hold true for the entire
population.
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LIMITATIONS
 The Research covers a sample size of only 100, which could be

small as compared to the population.
 Since the company for the research assigns Hyderabad city, all 100
samples are considered from this city.
 The information and data collected and analyzed is restricted to the

researchers knowledge and ability.
 Short duration of time for carrying out the project study proved as
barriers.
 All experience could not be put on paper.
 Some respondents will not show much interest to our project work
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CHAPTER II
 REVIEW OF LITERATURE
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 REVIEW OF LITERATURE
A brand is “a set of expectation and association evoked from a company

or product. A brand is how your key constituents- customers, employees,
shareholders etc. experience what you do.” Some brands are of such great
importance to people, that we speak of them as a part of one’s life and
identity, being used to express one. Some would say that these brands
have their own personality, the brand personality, which can be defined
as “the set of human characteristics associated with a given brand”. Thus,
it includes such characteristics as gender, age and socioeconomic class; as
well as such classic human personality is both distinctive and enduring.
Based on the premise that brand can have the personalities in much the
same way as humans, brand personality describes brands in terms of
human characteristics. Brand personality is seen as valuable factor in
increasing brand engagement and brand attachment, in much the same
way as people relate and bid to other people. Much of the work in the
area of brand personality is based on translated theories of human
personality and using similar measures of personality attributes and
factors. Brand personality refers to the set of human characteristics we
associated with the brand. A common way of determining this is to reply
on the metaphor: “If the brand was a person, what would he/she be like?”
we then list and group the traits to describe the brand as, for example:
caring, approachable and trustworthy. However, there is a lot more we
can do.
Because many people interact with brands as though they were other
people, it is important to understand what a brand personality consists of,
and how its characteristics can be used to affect the relationship between
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the brand and its user. Knowing and understanding the brand personality
gives a good insight into this relationship, and into peoples’ attitudes
towards the brand, and is also as important guide to communicating the
brand.
VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY

People’s personalities are determined largely through the value and
beliefs they have, and other personality characteristics they develop. An
example of value or belief is honesty.
Many people believe in being honest in everything they do and say. An
example of characteristic is confidence. This is not a belief, but more of a
behavior. There are, of course, many value/beliefs and characteristic that
a person may have, but there are some that are particularly likeable. It is
these likeable values and characteristics that people are inevitably
attracted. Examples of these include dependability, trustworthiness,
honesty, reliability, friendliness, caring, and fun-loving.
There are about two hundred words that describe personality

characteristics, and these can be used for putting personality into brands.
To illustrate how people think in personality terms when making
judgments about brands, here are the results of consumer research into
how people feel about tow companies. When asked question: “if these
companies are people, how would you describe them?” their replies were:
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Company A Company B
Sophisticated Easy going
Arrogant Modest
Efficient Helpful
Self- centered Caring
Distant Approachable
Disinterested Interested
These two companies are actually competitors in a service industry. If

you were asked of these two companies you would like to be your fiends,
you would probably choose company B, as did 95% of other respondents.
It is not surprising that the service level of company B can be better
experience for customers than that of company A. it is also easy to
conclude that if customers consistently experience these differences
between the two companies, then the brand image of company B will be
much better than company A.
A further point of interest arising out of this research is that people tend
to prefer brands that fit their self-concept. Everyone has views about
themselves and how they would like to be seen by others. And they tend
to like personalities that are similar to theirs, or to those whom they
admire. Thus, creating brands with personalities similar to those of a
certain group of consumers will be an effective strategy. The closer the
brand personality is to the consumer personality (or one which they
admire or aspire to), the greater will be the willingness to buy the brand
and deeper the brand loyalty.
The Creation of Brand Personality
Brand personality traits are formed and influenced by any direct or

indirect contact that the consumer has with a brand. A brand, unlike a
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person, cannot think, feel or act. A brand has no objective existence at all;
it is simply a collection of perception on the mind of the consumer.
Consumers accept the marketing actions to humanize brands. One
explanation fort this can be found in the theories of animism, which
suggest that there exists need by people to anthropomorphize objects in
order to facilitate interaction with the nonmaterial world.
Anthropomorphize occurs when human qualities are attributed to non
human objects, e.g. brands. Consumers easily assign personality quality
to inanimate objects like brands in thinking about the brands as if they are
human characters.
In a direct way, personality traits are associated with a brand by the

people associated to that brand. One direct way to form and influence
brand personality is user imaginary. User imaginary is defined as the set
of human characteristics associated with the typical or stereotype user of
the brand. Associations with the company employees or CEO and the
brand’s product endorsers are also direct ways by which brand
personality traits are formed and influenced. The personality traits that of
the people associated with a brand are transferred directly to the brand.
The theories of animism describe another process mechanism that
directly explains the specific ways in which the vitality of the brand can
be realized (Fournier, 2004). Spokespersons that are used in advertising
can have personalities that fit those of the brand they advertise. Over
time, the personalities of the spokesperson are transmitted to the brand.
The brand-person associations can also have a more personal nature.
Brands can be associated with person who use or used that particular
brand, for example a close friend or a family member. Also, brands
received as gifts can also be associated with the person from whom the
gift was received. These person associations serve to animate the brand as
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a vital in the minds of the consumers. Obviously, this aspect is much less
under the control of the marketers.
Indirectly, the brand personality is created by all the elements of the

marketing mix. Betra, Lehman and Singh suggest that the personality of a
brand is created over time, by the entire marketing mix of the brand - “its
price (high or low, odd or even), retail store location (imaginary
associations), product formulation (ingredients, benefits), and product
form (solid/liquid. Etc.), packaging details (color, size, material, shape),
symbol; used an all phases of the brand communication, sales promotion,
and media advertising”.
Another form of animism explains how brand personality is created in a

more indirect way. This form of animism involves complete
anthropomorphization of the brand object itself. Human qualities of
emotionality and thought are transferred to the brand. This is achieved
with the help of the marketing actions, especially advertising. For
example, the brand character of M&M in the M&M commercials has the
capacity to laugh and joke.
One of the advantage of the brand personality is that based on their

distinctive personalities, consumers are able to differentiate between
brands. Another advantage is that the consumer can interpret the brand’s
image in such a way that it is personally more meaningful. Brand
personality encourages more active processing on the part of the
consumer. Thus, the consumer put more efforts in creating and using the
brand personality. A further advantage of brand personality is that life is
given to a brand. By vitalizing a brand, another perspective of brand
personality can be examined, namely the role of a brand as relationship
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partner in a consumer-brand relationship. Next we will concentrate on
these consumer-brand relationships.
Whether the brand is a product or a company, the company has to decide

what personality traits the brand is to have. There are various ways of
creating brand personality. One way is to match the brand personality as
closely as possible to that of consumers or to the personality that they
like. The process will be
 Define the target audience

 Find out what they need, want and like
 Build a consumer personality profile
 Create the product personality to match that profile
Why use brand personality
The brand personality construct can help brand strategies by enhancing

their understandings of people’s perceptions of and attitude towards the
brand, contributing to a differentiating brand identity guiding the
communication effort and creating brand equality.
 Enriching understanding
The brand personality metaphor can help a manager gain an in-

depth understanding of consumer perceptions and attitudes towards
the brand. By asking people to describe a brand personality,
feelings and relationship can be identified that often provide more
insight than is gained by asking about attribute perceptions.
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 Contributing to a differentiating identity
Strategically, a brand personality, as a part of a core or extended
identity, can serve as the foundation for meaningful
differentiations. Advertising agencies such as Young & Rubicam
and Ogilvy & Mather routinely include a brand personality
statement as a part of their brand positioning strategy.
 Guiding the communication effort
Tactically the brand personality concept and vocabulary
communication the brand identity which richness and texture to
those who must implement the identity building effort. Practical
decisions need to be made about not only advertising but
packaging, promotions, which events to associate with, and the
style of person interactions between the customer and the brand.
 Crating brand equity
The brand personality creates brand equity. The self-expression

model explains this. The model says that for certain groups of
customers; some brands become vehicles to express a part of their
self-identity. People express their own or idealized identity in a
variety of ways, such as a job choices, attitudes, options, activities
and lifestyles. Brand that people like, admire, discuss, buy and use
also provide a vehicle for self-expression.
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CHAPTER-III
 INDUSTRY PROFILE
 COMPANY PROFILE
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 INDUSTRY PROFILE
History of Two Wheeler Industry
India is the second largest manufacturer and producer of two wheelers in

the world. It stands next only to Japan and China in terms of the number
of two wheelers produced and domestic sales respectively. The
distinction was achieved due to variety of reasons like respective policy
followed by Government of India towards the passenger car industry,
rising demand for personal transport, inefficiency in the public
transportation system etc. Invention of Two-Wheelers
History can't be stored or categorized in a water tight compartment;

neither can some things be definitely told or strictly defined. In this
section a general history of two-wheelers is being traced without trying to
venture into strict classification and differentiation. Around 1840 a
Scotsman named Kirpatrick Macmillan came up with an idea of a pedal
driven bicycle, Macmillan a blacksmith by profession got the idea when
he was asked to repair a hobby horse. The first bicycle which its inventor
called velocipede slowly started catching the fancy of the people, as
inquisitive minds started thinking of faster ways of getting around the
town.
Ind 1868 in France MIchaux-Perraux attached a small steam engine to a

bicycle thus adding a little more steam to the development. Around the
same time across the Atlantic a similar steam propelled machine was
demonstrated by built by Sylvester Howard Roper of Roxbury,
Massachusetts.
However the invention of the first motorcycle was done by the German
inventors ottlieb Daimler and Wilhelm Maybach in 1885. The first
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petroleum-powered vehicle, it was essentially a motorized bicycle,
although the inventors called their invention the Reitwagen ('riding car').
This engine was prepared more for experimentation rather than for
commercial purposes.
However as early as 1894 a motorcycle was available for commercial

purposes. The bike named Hildebrand and Wolfmuller was manufactured
in a small scale few hundreds to be precise. These two wheelers died a
natural death due to high cost and technical difficulties.
Slowly the motorcycles were improved upon and soon they become
faster, reliable and more fuel efficient. For a separate history on the
development of scooters check out origin of scooters
The History of Indian two Wheeler Industry
In 1955, the Indian government needed sturdy and reliable motorcycles

for its Army and police to patrol the rugged border highways. The first
batch of 350cc Bullet from the Royal Enfield Company of UK were
received and assembled at Chennai.
Bajaj Auto began trading in imported Vespa scooters and three wheelers.
Finally in 1960, it set up a shop to manufacture then in collaboration with
Piaggio of Italy. The agreement expired in 1971.
In the initial stages, the scooter segment was dominated by API,it was
later overtaken by Bajaj Auto. Although various government and private
enterprise entered the fray for scooters, the only new player that has
lasted till today is LML.
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Under the regulated regime, foreign companies were not allowed to
operate in India. It was a complete seller market with the waiting period
for getting a scooter from Bajaj Auto being as high as 12 years
The motorcycles segment was no different, with only three manufactures

viz Enfield, Ideal Jawa and Escorts .While Enfield bullet was a four
stroke bike,Jawa and the Rajdoot were two stroke bikes. The motorcycle
segment was initially dominated by Enfield 350 cc bikes and Escorts 175
cc bike.
The two wheeler market was opened to foreign competion in the mid
-80s.And then the market leaders Escorts and Enfield were caught
unaware by the onslaught of the 100 cc bikes of the four Indo –Japanese
joint ventures.
With the availability of fuel –efficient low power bike, demand swelled,
resulting in Hero Honda then only producer for four stroke bikes (100 cc
category ),gaining top slot.
The first Japanese motorcycles were introduced in the early eighties. TVS
Suzuki and Hero Honda brought in the first two stroke and four stroke
engine motorcycles respectively. These two players initially started with
assembly of CKD kits, and later on progressed to indigenous
manufacturing. In the 90s the major growth of motorcycles segment was
brought in Japanese motorcycles, which grew at a rate of nearly 25% in
the last five years.
The industry had a smooth ride in the 50s,60s and 70s when the
government prohibited new entries and strictly controlled capacity
expansion. The industry saw a sudden growth in the 80s. The industry
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witnessed a steady growth of 14% leading to peak volume of 1.9mn
vehicles in 1990.
The entry of Kinetic Honda in mid –eighties with a variometric scooter

helped in providing ease of use to the scooter owners. This helped in
inducing youngsters and working women towards buying scooters, who
were earlier inclined towards moped purchase. In the 90s ,this trend was
reversed with the introduction of Scooterette. In the line with this, the
scooter segment has constiently lost its part of the market share in the two
wheeler market.
In 1990s, the entire automobile industry saw a drastic fall in demand.

This resulted in a decline of 15% in 1991 and 8% in 1992,resulting in a
production loss of 0.4 mn vehicles. Barring loss due to increase rise in
fuel prices, high input cost and reduced purchasing power due to
significant rise in general price level and credit crunch in consumer
financing .factors like increased production in 1992,due to new entrants
coupled with the recession in the industry resulted in companies either
reporting losses or fall in profits.
Segmental Classification and Characteristics

The three main products segments in the two wheeler category are
scooters, motorcycles and mopeds. However, in response to evolving
demographics and various others factors, other sub segment emerged,
viz.scootrretess, gearless scooters, and 4 stroke scooters .While the first
two emerged as a response to demographics changes, the introduction of
4 stroke scooters has followed the imposition of stringent pollution
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Scooter Motorcycle Moped
Price*(Rs. A > 22,000 > 30,000 > 12,000

Stroke 2-stroke, 4-stroke Mainly 4-stroke 2-stroke
Engine Capacity (cc) 90-150 100, 125, > 125 50, 60
Ignition Kick/Electronic Kick/Electronic Kick/Electronic
Engine Power (bhp) 6.5-9 7-8 and above 2-3
Weight (kg) 90-100 > 100 60-70
Fuel Efficiency (kms per litre) 50-75 50-80+ 70-80
Load Carrying High Highest Low
The growth of production in Automobile industry in 000s
Category
2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009-
03 04 05 06 07 08 09 10
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Passenger
513 564 609 842 961 1,046 1153 1280
cars
Multi-utility
128 190 245 327 398 450 521 612
vehicles
Commercial
157 163 204 275 350 391 428 570
vehicles
Two
3,759 4,271 5,076 5,625 6,527 7,300 8,070 9030
wheelers
Three
203 213 277 341 374 434 569 645
wheelers
Total 0 0401 0411 0410 0610 0621 10741 12137
Growth in
10.47 11.70 18.60 15.12 16.80 14.97 18.04 24.03
percentage
TWO WHEELER Manufactures
 The Major Two wheeler Manufactures of India are

 TVS Motors Company LTD ( TVS )
 Honda Motors Ltd ( HHML )
 Bajaj Auto Ltd ( Bajaj Auto )
 Yamaha Motors India Ltd ( Yamaha )
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 Honda Motorcycles & Scooter India ( P ) Ltd ( HMSI )
 Royal Enfield Ltd ( REL )
 Kinetic Motor Company Ltd ( KMCL )
The Indian two wheeler industry is highly dominated by three players
TVS Motors Company ( TVS ) ,HERO HONDA Motors Ltd ( HHML )
and Bajaj Auto Ltd (Bajaj Auto ) accounting for over 80 % of sales in
2007.
Technology
Hitherto, technology transfer to the Indian two-wheeler industry took

place mainly through: licensing and technical collaboration (as in the case
of Bajaj Auto and LML); and joint ventures (HHML). .
A third form - that is, the 100% owned subsidiary route - found favour in
the early 2000s. A case in point is HMSI, a 100% subsidiary of Honda,
Japan. Table 2 details the alliances of some major two-wheeler
manufacturers in India.
Besides the below mentioned technology alliances, Suzuki Motor

Corporation has also followed the strategy of joint ventures (SMC
reportedly acquired equity stake in Integra Overseas Limited for
manufacturing and marketing Suzuki motorcycles in India).
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Table 2
Technological tie-ups of Select Players
Nature of Alliance Company Product
Bajaj Auto Technological tie-up Kawasaki Heavy Industries Ltd, Japan Motorcycles
Technological tie-up Tokya R&D Co Ltd, Japan Two-wheelers
Technological tie-up Kubota Corp, Japan Diesel Engines
HHML Joint Venture Honda Motor Co, Japan Motorcycles
KEL Technological tie-up Hyosung Motors & Machinery Inc Motorcycles
KEL Tie up for manufacturing Italjet, Italy Scooters
and distribution
LML Technological tie-up Daelim Motor Co Ltd Motorcycles
Hero Motors Technological tie-up Aprilia of Italy Scooters
With the two-wheeler market, especially the motorcycle market,

becoming extremely competitive and the life cycle of products getting
shorter, the ability to offer new models to meet fast changing customer
preferences has become imperative. In this context, the ability to deliver
newer products calls for sound technological backing and this has become
one of the critical differentiating factor among companies in the domestic
market. Thus, the players have increased their focus on research and
development with some having indigenously developed new models as
well as improved technologies to cater to the domestic market. Further,
with exports being one of the thrust areas for some Indian two-wheeler
companies, the Indian original equipment manufacturers (OEMs) have
realised the need to upgrade their technical capabilities. These relate to
three main areas: fuel economy, environmental compliance, and
performance. In India, because of the cost-sensitive nature of the market,
fuel efficiency had been an interest area for manufacturers.
It is not only that the OEMs are increasing their focus on in-house R&D,
they also provide support to the vendors to upgrade the technology and
also assist them striking technological alliances.
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COMPANY PROFILE
Hero Honda Motors

In 1984, Hero Honda started as a Hero Cycles Of India and Honda
Motors Company Limited of Japan. Hero Honda has the unique
distinction of being awarded the Bike maker of the Year award for 3
consecutive years by Overdrive magazine
Hero Honda is the clear market winner in the two-wheeler segment and
boasts of more than 5 million customers. Located at Dharuhera and
Gurgaon in Haryana, Hero Honda Motors Limited has over 1500 sales
outlets all over India.
HERO HONDA MOTORCYCLES

MODEL CAPACITY
Hero Honda Achiever 149.1 CC
Hero Honda CBZ 156 CC
Hero Honda CD Dawn 97.2 CC
Hero Honda CD Deluxe 97.2 CC
Hero Honda CD 100 97.2 CC
Hero Honda CD 100 SS 97.2 CC
Hero Honda Glamour

124.7CC
124.8 CC
 Glamour
 Glamour - FI
Hero Honda Karizma 223 CC
Hero Honda Passion Plus 97.2 CC
Hero Honda Sleek 97.2 CC
Hero Honda Splendor 97.2CC
Splendor +
124.7 CC
Super Splendor
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- The Company was Incorporated on 19th January, at New Delhi. The
Company 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 technical
information 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, 119,99,985 No. of equity shares issued at par of which
71,99,985 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.
- (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

balance 48,00,000 shares, 2,40,000 shares were reserved for subscription
by the employees of the Company and 96,000 shares by business
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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 cash at par on rights basis in
the proportion 1 debenture: 18 equity shares.
- Another 3,00,000 - 15% debentures were allotted to retain

oversubscription. 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
- The Company introduced a new model Sleek during July.
- 850 No. of equity shares forfeited.

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- The Company was planning to launch a new model motor cycle-CD
100 SS sutiable to semi-rural conditions. In the domestic market the
Company was reported to have a market share of 46%.
- 850 forfeited shares reissued.
- The Company proposed to expand the capacity of existing plant at

Dharuhera to 2,40,000 nos. per annum. Another plant with an installed
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
shall be allotted to presenting the same for consolidation and allotment.
- The Company's production and turnover increased to 1,83,490

motorcycles and Rs.483.85 crores respectively due to growth in demand
for two wheelers and declining inflation.
- 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 year 2004 which includes
technology related to models of higher Engine displacement.
32
- The Company alloted 39,79,500 No. of Equity Shares of Rs. 10/- each
as Bonus shares on 7th February, by way of capitalisation of General
Reserves.
- The Company had issued 28557 No. of Fractional Coupons

representing 14.250 shares against which the Shares shall be alloted on
presenting the same for consolidation and allotment.
- 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 (HHML) 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-art 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

globalisation plan, has set up a plant in Brazil for manufacturing hero
winner scooters.
- A new step thru model `Street-100' with unique feature was launched
on 24th January.
- The company proposes to increase the share capital to 5 crore equity

shares of Rs. 10 each, 4 lakh cumulative redeemable preference shares
33
of Rs. 100 each and 4 lakh cumulative convertible preference shares of
Rs. 100 each with power to increase or reduce it from time to time.
- The company further proposes to capitalise 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 allotted
and distributed to members of the company holding equity shares of the
company in the proportion of one bonus share for every fully paid equity
shares of Rs.10 each.
- Motorcycles 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 a 51 per cent equity stake.
- Honda Motor Company Ltd of Japan (Honda) and Kinetic Honda

Motor Ltd
(KHML) have signed a five-year licence and technical assistance
agreement under which KHML will continue to receive the technical
knowhow, critical vehicle parts and access to Honda's markets even after
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 a unique feature of Transient
Power Fuel Control (TPEC) system.
34
- 23,962,500 bonus shares issued in prop. 1:1.
- Hero Honda Motors Ltd (HHML) 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.
- 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.
- Hero Honda Motors Ltd. and Tata Finance Ltd. have signed a national
tie-up agreement. The Company is the largest manufacturer of
motorcycles in the country.
- The Company will relaunch its stepthru Stree Smart on Baisakhi 13 th

April.
- Hero Honda Motors Ltd (HHML), has launched an upgraded version of

the existing step-through motorcycle - the Hero Honda Street.
35
- The Company was ranked as the 9th Highest Value Creator among 12
industry groups within the Bombay Stock Exchange top 100 companies
over a five year period (1994-99).
- 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.
- 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 country’s largest motorcycle manufacturing

company, Hero Honda Ltd, Brijmohan Lall Munjal has bagged the
prestigious Ernst & Young Entrepreneur of the Year (EOY) award here
on -Company included in the 30 companies Bombay Stock Exchange
index (Sensex)
-Becomes the world's largest two wheeler company by selling 1.3

million vehicles in 2001
36
-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
-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 capitalisation (m-cap)

growth in the last fifteen months
-Achieves a landmark sales turnover of over Rs 5,000 crore during
-Launches its cheapest 100cc motorbike 'CD Dawn'
-Hikes production capacity at two of its manufacturing facilities to three

lakh units
37
-Hero Honda and SBI Cards launch co-branded credit card for Hero
Honda's 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
-Initiates a new dealer credit system which will bring down its receivable
levels to around seven days and save the company 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 Karizma bags BBC Bike of the Yr Award
-Hero Honda retreats Ambition
-Hero Honda unveils new version of Ambition
-Hero Honda's Dawn emerges as largest entry-level bike
38
-Hero Motors introduces 'Sting' new 4-stroke bike
-Hero Motors has announced a licensing agreement with Austria-based

Bombardier-Rotax that will provide 125cc-175cc engines for the
upcoming `Hero Aprilia' range of scooters.
-Hero Honda renews alliance with Honda Motor
-Two-wheeler major Hero Honda and SBI Card, the credit card arm of
State Bank of India, have joined hands to launch India's first co-branded
credit card in the two-wheeler industry
-New product launches widen HHML's product portfolio
-Two-wheeler major Hero Honda on October 5 announced launch of its

first scooter 'Pleasure'
-Hero Honda rolls out 150-cc motorcycle Achiever
-Hero Honda launches CBZ variant X-treme
-Hero Honda announced the launch of two new variants the new
'Glamour' and 'Passion Plus' limited edition.
-Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Director
and Whole-time Director of the Company in the category of Executive
Director w.e.f. April 1, 2007.
39
CHAPTER-IV
RESEARCH METHODOLOGY
40
Research Methodology:
Sources of data
Data are facts, figures and other relevant materials, past and present,
serving as bases for study and analysis. The data serves as the basis for
analysis without an analysis of factual data no specific inferences can be
drawn on the questions under study. Inferences based on imagination or
guesswork cannot provide correct answers to the research questions, the
relevance, adequacy and reliability of data determine the quality of the
findings of a study. For the purpose of present study, data from two
sources have been collected namely primary and secondary data.
Primary data
Primary data are the data that are collected to help solve a problem or
taken advantage of an opportunity on which decision must be taken. The
main method of collecting primary data is survey method, there are
different types of survey techniques for example personal interview, mail
survey, Internet survey and telephone survey.
Primary data is first hand information that has been collected by the
researcher from the respondents of Hyderabad city through personal
interview method with the help of questionnaire. Analysis, interpretation,
summary of findings, conclusions and recommendations are completely
based on primary data.
41
Secondary data
Secondary data are data that were developed for some purpose other then
helping to solve the problem at hand. After identifying and defining the
research problem and determining specific information required solving
the problem, the researchers task is to look for the type and sources of
data, which may yield the desired results.
Secondary data in this research references made by the researcher with

the other published sources. The present research will not be complete
without the complete reference to the relevant secondary data.
42
CHAPTER-V
 ANALYSIS AND INTERPRETATION
43
 ANALYSIS AND INTERPRETATION
MAJOR COMPETITATORS AND THEIR PRODUCTS
Suzuki Motor Corporation
Suzuki Motor Corporation has a wholly owned subsidiary in India-Suzuki

Motorcycle India Private Limited. The Indian subsidiary employs about
650 people including the contract workers. Suzuki Motorcycle is a
manufacturer of two-wheelers and has manufacturing facility at Gurgaon,
Haryana. The company started its manufacturing operations in February,
2006.
SUZUKI MOTORCYCLES
MODEL CAPACITY
Suzuki Heat 125 CC
Suzuki Zeus 125 CC
44
Kinetic Motor Company Ltd.
Kinetic Motor Company Limited was incorporated in 1984 as a joint
venture with Honda Motor, Japan and is a part of the Kinetic group of
companies. The company has a state of the art manufacturing facility at
Pithampur, near Indore, Madhya Pradesh and has a strong network of
over 400 dealers and authorized service centers. Kinetic Motor is ISO
9001 certified from DNV for all models and activities. USA, Canada,
Latin America, Europe, Africa, Middle East and South Asia are the main
export markets for the Kinetic Motor automobiles.
KINETIC MOTORCYCLES
MODEL CAPACITY
Kinetic Aquila 249 CC
Kinetic Boss 97.2 CC
 Boss
 Boss 115
Kinetic Challenger 97.2 CC

Kinetic Comet 250 CC
Kinetic GF
166 CC
 GF Laser
166 CC
 GF 170
125 CC
 GF 125
Kinetic Stryker 97.2 CC

Kinetic Velocity 115 CC
Bajaj Auto Ltd.
45
Bajaj Auto Limited is one of the pioneering companies in the two wheeler
industry. Bajaj Auto has a vast network of about 1500 service centers and
500 dealers all over India. It has 3 manufacturing plants located at
Akurdi, Waluj and Chakan in Maharashtra. The company's technology
partner is Kawasaki Heavy Industries, Japan. The company exports to
ASEAN region, South America and Africa.
BAJAJ MOTORCYCLES
MODEL CAPACITY
Bajaj Avenger 180 CC
Bajaj CT 100 99.27 CC
Bajaj Discover
111.63 CC
 Bajaj Discover
124.52 CC
 Bajaj Discover DTSi
Bajaj Kawasaki Caliber 111.6 CC

Bajaj Kawasaki Boxer 111.6 CC
Bajaj KB 125 123 CC
Bajaj 4S Champion 99.35 CC
Bajaj Platina 99.27 CC
Bajaj Pulsar DTSi
180 CC
 Pulsar 180 DTS-i UG
150 CC
 Pulsar 150 DTS-i UG
Bajaj Wind 125 124.6 CC
FINANCIAL REPORT
IN CRORES
Financials of TVS Motor Quarterly Annual
(Mar '09) (Mar '08)
Income Statement
46
Net Sales 919.88 3234.96
Other Income 26.96 80.72
PBDIT 37.04 283.35
Net Profit 9.05 117.00
Balance Sheet
Total Share Capital 23.75
Net Worth 766.12
Total Debt 385.04
Net Block 766.78
Investments 344.19
Net Current Assets -80.29
Total Assets 1151.16
Which bike do you have? * How did you come to know about this bike? Crosstabulation
Count
How did you come to know about this bike?
Ads Friends Magzines News Paper Total
Which bike do TVS star city 10 17 10 13 50
you have? Hero Honda Splender 14 23 6 7 50
Total 24 40 16 20 100
47
30
23
20
17
14 How did you come to

13
10
10 10 Ads
7 Friends
6
Magzines
Count
0 New s Paper
TVS star city Hero Honda Splender
Which bike do you have?
From 50 respondents of TVS Star city we come know that 10 bike users
came to know about the bike through Ads,17 of them came to know
through Friends,10 of them came to know through Magazines and 13 of
them came to know through Magazines.
In case of 50 respondents of Hero Honda Splendor 14 of the bike user

came to know through Ads,23 of them came to know through Friends,6
came to know through Magazines and 7 of them came to know through
News Paper.
48
Which bike do you have? * What is the price of your bike? Crosstabulation
Count
What is the price of your bike?
35,000 to 40,000 to 45,000 to
40,000 45,000 50,000 Total
Which bike do TVS star city 6 44 50
you have? Hero Honda Splender 9 41 50
Total 6 53 41 100
50
44
40 41
30
20
What is the price of
10 35,000 to 40,000
9
40,000 to 45,000
Count
6
0 45,000 to 50,000
Out of 50 respondents of TVS Star city 6 of the user have purchased the
bike by paying about 35,000 to 40,000 to their bikes and 44 of them have
purchased by paying RS 40,000 to 45,000
In case of Hero Honda Splendor 9 of the bike user have purchased by

paying RS 40,000 to 45,000 and 41 of them have purchased by paying RS
45,000 to 50,000.
49
Which bike do you have? * Has price factor made you to choose specific
bike? Crosstabulation
Count
Has price factor made
you to choose specific
bike?
Yes No Total
Total 63 37 100
50
47
40
34
30
20
16
Has price factor mad
10
Yes
Count
0 3 No
Out of the 50 respondents of TVS Star city 47 of the bike user were price
conscious and have brought their bike because of the price factor and 3 of
them were not bothered about the price.
In case of 50 respondents of Hero Honda Splendor 16 bike users are

concerned about the price factor but 34 respondents are bothered about
the price factor.
50
Which bike do you have? * How much is the mileage of your bike per litre? Crosstabulation
Count
How much is the mileage of your bike per
litre?
40 to 60 km 60 to 80 km 80 to 100 km Total
you have? Hero Honda Splender 4 25 21 50
Total 4 46 50 100
40
30
29
25
20 21 21
How much is the mile

10
40 to 60 km
60 to 80 km
Count
4
0 80 to 100 km
Out of 50 respondents of TVS Star city 21 bike user bikes gives mileage
about 60 to 80 km per litre and 29 respondents bike users bike give
mileage about 80 to 100 km per litre.
In case of 50 respondents of Hero Honda Splendor 4 bike users bike give

mileage about 40 to 60 km per litre,about 25 respondents bikes give
mileage about 60 to 80 km per litre and about 21 respondents bike give
mileage about 80 to 100 km per litre
51
Which bike do you have? * Has mileage factor made you to choose specific
Count
Has mileage factor
made you to choose
specific bike?
yes No Total
Total 87 13 100
50
46
40 41
30
20
Has mileage factor m

10
9
yes
Count
4
0 No
Out of the 50 respondents of TVS Star city about 46 respondents have

chosen their bike keeping mileage factor in their mind. And 4 of the
respondents have just not bothered the mileage factor.
Out of the 50 respondents of Hero Honda Splendor about 41 respondents

have chosen their bike keeping mileage factor in their mind. And 9 of the
respondents have just not bothered the mileage factor.
52
Which bike do you have? * Your satisfaction level about pickup of your bike? Crosstabulation
Count
Your satisfaction level about pickup of
your bike?
highl satisfied satidfied netural Total
Which bike do TVS star city 24 24 2 50
Total 40 57 3 100
40
33
30
24 24
20
16
Your satisfaction le
10
highl satisfied
satidfied
Count
0 2 netural
Out of the 50 respondents of TVS Star city 24 of the respondents are

highly satisfied with the pick up of the bike, 24 of them are satisfied with
pick up of the bike and 2 of them say that their pick up of the bike is
neutral.
Out of the 50 respondents of Hero Honda Splendor 16 of the respondents
are highly satisfied with the pick up of the bike, 33 of them are satisfied
with pick up of the bike and 1 of them says that the pick up of the bike is
neutral
53
Which bike do you have? * Are you satisfied with focus of light provided by your bike? Crosstabulation
Count
Are you satisfied with focus of light provided by your
bike?
highly
satisfied satisfied netural dis satisfied Total
you have? Hero Honda Splender 14 31 3 2 50
Total 32 61 5 2 100
40
30 31
30
20
18 Are you satisfied wi
14 highly satisfied
10
satisfied
netural
Count
2 3 2
0 dis satisfied

highly satisfied with the focus of the light of the bike, 30 of them are
satisfied with the focus of the light of the bike and 2 of them say that the
focus of the light is neutral.
Out of the 50 respondents of Hero Honda Splendor14 of the respondents

are highly satisfied with the focus of the light of the bike, 31 of them are
focus of the light is neutral. And of them are dis satisfied with focus of
the light
54
Which bike do you have? * Are you satisfied by the perforamance of your bike?
Crosstabulation
Count
Are you satisfied by the
perforamance of your bike?
highly
satisfied satisfied neutral Total
Total 71 28 1 100
40
36
35
30
20
15 Are you satisfied by

13
10
highly satisfied
satisfied
Count
0 neutral

highly satisfied with the performance of the bike, 13 of them are satisfied
with the performance of the bike and 1 of them say that the performance
of the bike is neutral.

are highly satisfied with the performance of the bike, 15 of them are
satisfied with the performance of the bike .
55
Which bike do you have? * Does your bike provide you comfort drive?
Crosstabulation
Count
Does your bike provide
you comfort drive?
highly
satisfied satisfied Total
Total 48 52 100
29
28
28
27
26
26
25
24
24
23
Does your bike provi
22 highly satisfied
Count
22
21 satisfied

highly satisfied with comfort drive of the bike, 28 of them are satisfied
with the comfort drive of the bike.

are highly satisfied with comfort drive of the bike, 24 of them are
satisfied with the comfort drive bike of the bike
56
Which bike do you have? * what influenced you to buy specific bike? Crosstabulation
Count
what influenced you to buy specific bike?
service
colours provided by
provided by resale factor dealers of
company of bike showroom Total
Total 27 28 45 100
30
24 24
22
20 21
what influenced you
colours provided by
company
10
resale factor of bik
e
5
Count
4 service provided by
0 dealers of show room
Out of the 50 respondents of TVS Star city 22 of the respondents have

chosen their bike due to the colours provided by the company, 4 of them
have chosen for the factor of resale and 24 of them have chosen for the
factor of service provided by the dealer.

have chosen their bike due to the colours provided by the company, 24 of
them have chosen for the factor of resale and 21 of them have chosen for
the factor of service provided by the dealer
57
Which bike do you have? * which factors provided by your dealer influenced you to buy specific
Count
which factors provided by your dealer
influenced you to buy specific bike?
fianance exchange insurance
assistance offer facility Total
Total 33 18 49 100
30
25
24
20
18
15
10 which factors provid

10
8 fianance assistance
exchange offer
Count
0 insurance facility

chosen their bike due to finance assistance provided by the dealer, 10 of
them have chosen for the factor of exchange offer and 25 have chosen for
the insurance facility provided by dealer

have chosen their bike due to finance assistance provided by the dealer, 8
of them have chosen for the factor of exchange offer and 24 have chosen
for the insurance facility provided by dealer
58
Which bike do you have? * Do you beleive in quality of product or in brand
name? Crosstabulation
Count
Do you beleive in quality
of product or in brand
name?
quality brand name Total
Total 45 55 100
40
33
30
28
22
20
Do you beleive in qu
17
quality
Count
10 brand name

chosen their bike on quality factor and 22of them have chosen for the
factor of brand name of the company

have chosen their bike on quality factor and 33of them have chosen for
the factor of brand name of the company.
59
Which bike do you have? * Single most reason for buying this bike? Crosstabulation
Count
Single most reason for buying this bike?
less
mainteance good features look Total
Total 45 40 15 100
30
25
22
20
20
18
10 Single most reason f
8 less mainteance
7
good features
Count
0 look

chosen their bike for the factor of less maintenance, 22of them have
chosen for the factor of good features and 8 of them for the look factor.

have chosen their bike for the factor of less maintenance, 18of them have
chosen for the factor of good features and 7of them for the look factor.
60
Satisfaction level:
Your satisfaction level about pickup of your bike?
Cumulative
Frequency Percent Valid Percent Percent
Valid highl satisfied 24 48.0 48.0 48.0
satidfied 24 48.0 48.0 96.0
netural 2 4.0 4.0 100.0
Total 50 100.0 100.0
Your satisfaction level about pickup of your bike?
Cumulative
Valid highl satisfied 16 32.0 32.0 32.0
satidfied 33 66.0 66.0 98.0
netural 1 2.0 2.0 100.0
Total 50 100.0 100.0
Pickup Pick up
4% 2%
32%
highl satisfied highl satisfied
48%
48% satidfied satidfied
netural netural
66%
Interpretation
From the above table we came to know that 48 % respondents of TVS
Star city are satisfied with pick up bike and 48% are Highly Satisfied. and
4 % of respondents say that there bike provides neutral pick up means
that neither satisfied or dis satisfied .
The Hero Honda Splendor respondents of about 32 % are highly satisfied
with pick up of bike, 66% are satisfied and 2 % of them say that the bike
provides neutral pick up which means they are neither satisfied nor dis
satisfied.
61
Conclusion
From the above table we can say that in TVS Star city case about 48 %
are highly satisfied in comparing with Hero Honda Splendor in which
only about 32 % are highly satisfied in case of highly satisfied of pickup
of bike TVS Star city is good than Hero Honda Splendor but 4 % of the
respondents say that the pick up is neutral while
Splendor it splendor it is only 2 %.So it means respondents are satisfied

with Hero Honda
Are you satisfied with focus of light provided by your bike?
Cumulative
Valid highly satisfied 14 28.0 28.0 28.0
satisfied 31 62.0 62.0 90.0
netural 3 6.0 6.0 96.0
dis satisfied 2 4.0 4.0 100.0
Total 50 100.0 100.0
Are you satisfied with focus of light provided by your bike?
Cumulative
satisfied 31 62.0 62.0 90.0
netural 3 6.0 6.0 96.0
dis satisfied 2 4.0 4.0 100.0
Total 50 100.0 100.0
Focus Focus
4% 4%
6%
28%
36%
highly satisfied
highly satisfie d
satisfied
sati sfied
netural
60% netural
dis satisfie d
62%
62
Interpretation

Star city are Highly satisfied with focus of light of bike and 60% are
Satisfied. and 4 % of respondents say that there bike provides neutral
focus of light it means that neither satisfied or dis satisfied.
with focus of light, 62% are satisfied and 6% of them say that the bike
provides neutral focus of light which means they are neither satisfied nor
dis satisfied and 4 % are dis satisfied with focus of light of Hero Honda
Splendor
Conclusion
About the focus of the light of both bikes customers are equally satisfied
but in case of Hero Honda 4% of them are dissatisfied it shows that focus
light of TVS star city is comparatively performing little better than of
Hero Honda splendor.
63
Are you satisfied by the perforamance of your bike?
Cumulative
satisfied 13 26.0 26.0 98.0
neutral 1 2.0 2.0 100.0
Total 50 100.0 100.0
Are you satisfied by the perforamance of your bike?
Cumulative
satisfied 15 30.0 30.0 100.0
Total 50 100.0 100.0
Pe rformance Pe rformance
2%
26% 30%
highly satisfied
highly satisfied
satisfie d
satisfie d
ne utral 70%
72%
Interpretation

Star city are Highly satisfied with performance, and 26 % are Satisfied.
And 2 % of respondents say that there bike provides neutral performance
means that neither satisfied nor dis satisfied.

with performance, 30 % are satisfied with the performance of the bike.
64
Conclusion
Performance of the bikes is concerned Hero Honda splendor is
comparatively better than TVS Star city. In TVS Star city out of total
population 2% of them are not expressed any kind of opinion they said its
neither satisfied nor dissatisfied.
65
Does your bike provide you comfort drive?
Cumulative
satisfied 33 66.0 66.0 100.0
Total 50 100.0 100.0
Does your bike provide you comfort drive?
Cumulative
satisfied 32 64.0 64.0 100.0
Total 50 100.0 100.0
Comfort
Comfort
34%
36%
highly satisfi ed
highly satisfied
66% satisfi ed 64% satisfied
Interpretation
Star city are highly satisfied, and 66 % are Highly Satisfied. With
comfort drive of the bike..
66
The Hero Honda Splendor respondents of about 36 % are highly satisfied,
64% are satisfied .
It indicates that comfort drive of Hero Honda Splendor is good as

compared to TVS Star city.
Correlations
Has price
factor m ade
Which bike you to choose
do you have? specific bike?
Which bike do you have? Pearson Correlation 1 .642**
Sig. (2-tailed) . .000
N 100 100
Has price factor made Pearson Correlation .642** 1
you to choose specific Sig. (2-tailed) .000 .
bike?
N 100 100
**. Correlation is significant at the 0.01 level (2-tailed).
ANALYSE
From the above table we come to know that there is a moderate co
relation between the choice of the bike with respect to the price .The
values of the above the table i.e. Is .642
This means that co relation is significant at the 0.01 level. Hence from the
above table we can conclude that there is a moderate co relation between
specific bike and price of the bike.
67
Which bike do you have? * what influenced you to buy specific bike? Crosstabulation
Count
what influenced you to buy specific bike?
service
colours provided by
provided by resale factor dealers of
company of bike showroom Total
Total 27 28 45 100
30
24 24
22
20 21
what influenced you
colours provided by
company
10
resale f actor of bik
e
5
C ount
4 service provided by
0 dealers of show room
Out of 50 respondents of TVS Star city 22 have brought the bike because
of colours,4 have brought because of resale factor and 24 have brought
because of service provided by dealer.
Out of 50 respondents of Hero Honda Splendor 5 of them brought
because of colours provided by the company, 24 have brought because of
68
resale factor and 21 for the reason of service provided by dealers of
showroom
Major of the respondents have brought TVS Star city for the reason of
colours provided by company where as Hero Honda Splendor have
brought for the reason of resale factor.
Which bike do you have? * Has price factor made you to choose specific
Count
Has price factor made
you to choose specific
bike?
Yes No Total
Total 63 37 100
69
50
47
40
34
30
20
16
Has price factor mad
10
Yes
Count
0 3 No
Out of 50 Respondents of TVS Star city about 47 respondents have

brought their bike because of its price while Hero Honda Splendor
respondents are not bothered about the price factor.
Which bike do you have? * Has mileage factor made you to choose specific
Count
Has mileage factor
made you to choose
specific bike?
yes No Total
Total 87 13 100
70
50
46
40 41
30
20
Has mileage factor m

10
9
yes
Count
4
0 No

brought their bike because of its mileage factor while 41 respondents of
Hero Honda Splendor have brought for mileage factor.
Which bike do you have? * Do you beleive in quality of product or in brand

name? Crosstabulation
Count
Do you beleive in quality
of product or in brand
name?
quality brand name Total
Total 45 55 100
71
40
33
30
28
22
20
Do you beleive in qu
17
quality
Count
10 brand name

brought their bike because of its quality factor while Hero Honda
Splendor respondents of 33 have brought because of brand factor .
72
CHAPTER-V
 FINDINGS
 CONCLUSIONS
 RECOMMENDATIONS
 QUESTIONNAIRE
73
 FINDINGS
1. From 50 respondents of TVS Star city 10 bike users came to know

about the bike through Ads,17 through Friends,10 through Magazines
and 13 through Magazines.
From 50 respondents of Hero Honda Splendor 14 of the bike user came to
know through Ads, 23 through Friends, 6 through Magazines and 7
through News Paper.
2. Out of the 50 respondents of TVS Star city 47 respondents of the bike

user have brought their bike because of the price.
In case of 50 respondents of Hero Honda Splendor 16 bike users are
concerned about the price factor.
3. Out of 50 respondents of TVS Star city 21 bike user bikes gives

mileage about 60 to 80 km per litre and 29 respondents bike users bike
give mileage about 80 to 100 km per litre.
In case of 50 respondents of Hero Honda Splendor 4 bike users bike give
mileage about 40 to 60 km per litre,about 25 respondents bikes give
mileage about 60 to 80 km per litre and about 21 respondents bike give
mileage about 80 to 100 km per litre.
4. Out of the 50 respondents of TVS Star city about 46 respondents have

chosen their bike keeping mileage factor in their mind. And 4 of the
respondents have just not bothered about the mileage factor.
Out of the 50 respondents of Hero Honda Splendor about 41 respondents
have chosen their bike keeping mileage factor in their mind. And 9 of the
respondents have just not bothered about the mileage factor
74
5. Out of the 50 respondents of TVS Star city 24 of the respondents are
highly satisfied with the pick up of the bike, 24 of them are satisfied with
pick up of the bike and 2 of them say that their pick up of the bike is
neutral.
are highly satisfied with the pick up of the bike, 33 of them are satisfied
with pick up of the bike and 1 of them says that the pick up of the bike is
neutral.

highly satisfied with the focus of the light of the bike, 30 of them are
focus of the light is neutral.
are highly satisfied with the focus of the light of the bike, 31 of them are
focus of the light is neutral. And of them are dis satisfied with focus of
the light.
7 Out of the 50 respondents of TVS Star city 36 of the respondents are

highly satisfied with the performance of the bike, 13 of them are satisfied
with the performance of the bike and 1 of them say that the performance
of the bike is neutral.
are highly satisfied with the performance of the bike, 15 of them are
satisfied with the performance of the bike.
75
highly satisfied with comfort drive of the bike, 28 of them are satisfied
with the comfort drive of the bike.
are highly satisfied with comfort drive of the bike, 24 of them are
satisfied with the comfort drive bike of the bike.
9. Out of the 50 respondents of TVS Star city 22 of the respondents have

chosen their bike due to the colours provided by the company, 4 of them
have chosen for the factor of resale and 24 of them have chosen for the
factor of service provided by the dealer.
have chosen their bike due to the colours provided by the company, 24 of
them have chosen for the factor of resale and 21 of them have chosen for
the factor of service provided by the dealer.
chosen their bike due to finance assistance provided by the dealer, 10 of
them have chosen for the factor of exchange offer and 25 have chosen for
the insurance facility provided by dealer.
have chosen their bike due to finance assistance provided by the dealer, 8
of them have chosen for the factor of exchange offer and 24 have chosen
for the insurance facility provided by dealer
chosen their bike on quality factor and 22of them have chosen for the
factor of brand name of the company
76
have chosen their bike on quality factor and 33of them have chosen for
the factor of brand name of the company.
chosen their bike for the factor of less maintenance, 22of them have
chosen for the factor of good features and 8 of them for the look factor.
have chosen their bike for the factor of less maintenance, 18of them have
chosen for the factor of good features and 7of them for the look factor
13. The respondents are buying TVS Star city for its good quality where
as respondents are buying Hero Honda Splendor for reason of its brand
name .
14. The respondents level of satisfaction towards TVS Star city is good..
77
CONCLUSIONS
This study of the topic “Customer Satisfaction: Comparative analysis of

TVS Star city with Hero Honda Splendor” has basically helped to know
the market conditions and how people make their decision and what they
prefer while purchasing the bikes this study has also helped to have a
complete understanding of two wheeler industry
Lastly to conclude the company is facing a strong competition by

other players in the market in spite of good awareness. The company
should create its brand awareness because Hero Honda Splendor is
making it sales by just its brand name. and thus TVS Should provide
good quality bikes to brand itself in the mind of the customers and then
they can capture the market share.
78
RECOMMENDATIONS
With my findings the suggestions that I can give are
1. Most of the respondents feel that the Hero Honda splendor is more
comfortable to drive than TVS Star City so the company should
also improve the comfort ability of the bike.
2. The TVS Company should try to increase its brand name because
Hero Honda Company is making it sales only through its brand
name. Hence TVS should create a brand in the minds of the
customer.
3. Hero Honda respondents are buying the bike because of the resale
factor .Hence TVS Company should concentrate on this factor.
4. The dealer should come up with the new attractive offers and
service in order to increase the sales of the TVS bikes in Hubli.
5. The company should come with new alterations in order to
increase the satisfaction level of the customers.
79
QUESTIONNAIRE
1. Name:
2. Cell number:
3. Occupation:
a) Govt employee b) Private employee
c) Business d) Student
4.Income
a) RS 30,000 to 50,000 b) RS 50,000 to 70,000
c) RS 70,000 to 90,000 d) RS 90,000 Above
1) Which bike do you have?
a) TVS star city b) Hero Honda splendor
2) How did you come to know about this bike?
a) Ads b) Friends
c) Magazines d) Newspaper
3) What is the price of your bike?

a) 35,000 -40,000 b) 40,000 -45,000
c) 45,000 – 50,000
4) Has price factor made you to choose specific bike?

a) Yes b) No
5) How much is the mileage of your bike per litre?
80
a) 40-60 km b) 60-80 km
c) 80-100 km d) 100-120 km
6) Has mileage factor made you to choose specific bike?
a) Yes b) No
7) Your satisfaction level about pickup of your bike?
H. S S Neutral D. S H.
D. S
8) Are you satisfied with focus of light provided by your bike?

H. S S Neutral D. S H.
D. S
9) Are you satisfied by the performance of your bike?

H. S S Neutral D. S H. D.
S
10) Does your bike provide you comfort drive?

H. S S Neutral D. S H. D.
S
11) What influenced you to buy specific bike?

a) Colors provided by company
81
b) Resale factor of bike
c) Service provided by dealers of showroom
12) Which factors provided by your dealer influenced you to

buy specific bike?
a) Finance assistance b) Exchange offer
c) Insurance facility
13) Do you believe in quality of product or in brand name?

a) Quality b) Brand
14) Single most reason for buying this specific bike?
a) Less maintenance b) Good features 9
c) Look
THANK YOU
82
BIBLIOGRAPHY
Marketing Research By A. Parasuraman Dhruv Grewal & R. Krishan

Marketing Management - Philip Kotler
Marketing Research - Harpar W.Boyd, Jr.Ralph Westfal
Marketing Hand Book - Bobrow & Bobrow
Research Methodology - C.R. Kothari
 Web sites
www.herohondamotors.com
www.automobileindia.com
www.waytowealth.com
www.India automobile.com
www.Tvs motors.com
www.Hero Honda motors .com
Magazines
Auto world
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CUSTOMER SATISFACTION

SCOPE OF THE STUDY

1. This study is restricted to the Hero Honda.

 The Research covers a sample size of only 100, which could be

 The information and data collected and analyzed is restricted to the

 All experience could not be put on paper.

A brand is “a set of expectation and association evoked from a company

VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY

There are about two hundred words that describe personality

These two companies are actually competitors in a service industry. If

Brand personality traits are formed and influenced by any direct or

In a direct way, personality traits are associated with a brand by the

Indirectly, the brand personality is created by all the elements of the

Another form of animism explains how brand personality is created in a

One of the advantage of the brand personality is that based on their

Whether the brand is a product or a company, the company has to decide

 Define the target audience

Why use brand personality

The brand personality construct can help brand strategies by enhancing

The brand personality metaphor can help a manager gain an in-

 Crating brand equity

The brand personality creates brand equity. The self-expression

History of Two Wheeler Industry

India is the second largest manufacturer and producer of two wheelers in

History can't be stored or categorized in a water tight compartment;

Ind 1868 in France MIchaux-Perraux attached a small steam engine to a

However as early as 1894 a motorcycle was available for commercial

The History of Indian two Wheeler Industry

In 1955, the Indian government needed sturdy and reliable motorcycles

The motorcycles segment was no different, with only three manufactures

The entry of Kinetic Honda in mid –eighties with a variometric scooter

In 1990s, the entire automobile industry saw a drastic fall in demand.

Segmental Classification and Characteristics

Price*(Rs. A > 22,000 > 30,000 > 12,000

The growth of production in Automobile industry in 000s

TWO WHEELER Manufactures

 The Major Two wheeler Manufactures of India are

Hitherto, technology transfer to the Indian two-wheeler industry took

Besides the below mentioned technology alliances, Suzuki Motor

With the two-wheeler market, especially the motorcycle market,

Hero Honda Motors

HERO HONDA MOTORCYCLES

Hero Honda Glamour

Hero Honda Karizma 223 CC

Hero Honda Passion Plus 97.2 CC

Hero Honda Sleek 97.2 CC

Hero Honda Splendor 97.2CC

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

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

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

- (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

- The Company embarked on its 2nd phase of expansion of increasing

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

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

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

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

- The Company introduced a new model Sleek during July.

- 850 No. of equity shares forfeited.

- 850 forfeited shares reissued.