PROJECT REPORT ON HERO HONDA

FIIB BATCH 2013-15

SUBMITTED BY: SACHIN JOSHI ROLL NO. SECTION : 96 : B

FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS VASANT VIHAR, NEW DELHI-110057

 COMPANY PROFILE
The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle Splendor. This festive season, the company sold half a million two wheelers in a single month a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year. These plants together are capable of producing out 4.4 million units per year . Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal Community of brand ambassadors. Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is constantly working towards consolidating its position in the market place. The company believes that changing demographic profile of India, increasing urbanization and the empowerment of rural India will add millions of new families to the economic mainstream. This would provide the growth ballast that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We pioneered India's motorcycle industry, and it's our responsibility now to take the industry to the next level. We'll do all it takes to reach there.''

 PRODUCT OFFER BY HERO HONDA

HERO HONDA ACHIEVER HERO HONDA KARIZMA HERO HONDA KARIZMA ZMR HERO HONDA CBZ HERO HONDA HUNK HERO HONDA SPLENDOR HERO HONDA SUPER SPLENDOR HERO HONDA SPLENDOR PLUS HERO HONDA GLAMOUR HERO HONDA GLAMOUR FI HERO HONDA PASSION HERO HONDA PASSION PLUS HERO HONDA CD DELUXE HERO HONDA CD 100 SS HERO HONDA SLEEK HERO HONDA CD DAWN

 PLANNING FOR COLLECTION OF DATA

(1) Primary Data (2) Secondary Data (1) Primary Data: Primary data is a type of information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. It is data that has not been previously published and is derived from a new or original research study and collected at the source such as in marketing. They are most original data in character and have not undergone any sort of statistical treatment. (2) Secondary Data: Secondary data is all the information collected for purposes other than the completion of a research project and its used to gain initial insight into the research problem. It is classified in terms of its source either internal or external.

 STATISTICAL TOOLS
Tools of analysis used for this study.
1.

Simple bar method: a simple bar diagram represents the magnitude of only
one .

2.

Pie diagram: in this the circle is partition in to various sections representing

the Proportions of various components.

MEAN
The mean (or average) is the most popular and well known measure of central tendency. It can be used with both discrete and continuous data, although its use is most often with continuous data (see our Types of Variable guide for data types). The mean is equal to the sum of all the values in the data set divided by the number of values in the data set. So, if we have n values in a data set and they have values x1, x2, ..., xn, the sample mean, usually denoted by (pronounced x bar), is:

This formula is usually written in a slightly different manner using the Greek capitol letter, , pronounced "sigma", which means "sum of...":

MEDIAN
The median of a set of data values is the middle value of the data set when it has been arranged in ascending order. That is, from the smallest value to the highest value.

STANDARD DEVIATION

Standard deviation (represented by the Greek letter sigma, ) shows how much variation or dispersion exists from the average (mean), or expected value. A low standard deviation indicates that the data points tend to be very close to the mean; high standard deviation indicates that the data points are spread out over a large range of values.

ANALYSIS OF VARIANCE
It is statistical techniques specially designed to test whether the means of more than 2 quantitative populations are equal. It consists of classifying and cross classifying statistically results and testing whether the means of a specified classification differ significantly

RANGE
The range is the size of the smallest interval which contains all the data and provides an indication of statistical dispersion. It is measured in the same units as the data. Since it only depends on two of the observations, it is most useful in representing the dispersion of small data sets. It is calculated by subtracting maximum minus minimum

 COMPLIANCE/PRESENTATION OF DATA:
Total income of HERO HONDA MOTORS LIMITED (1990-2011) Year 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Total Income (in million rupees) 1523.3 2187.0 2757.3 3134.7 3667.1 5087.6 6187.1 7840.3 11,642.2 15,655.3 22,698.0 32,060.0 45,132.7 51,520.3 67,864.8 86,656.2 101,879.5 100900 105,170 125,650

2010 160,990 2011 239430.6 Source: http://www.heromotocorp.com/en-in/investors/financials-annual report

MEAN MEDIAN VARIANCE RANGE MINIMUM MAXIMUM STANDARD DEVIATION CORRELATION

58883.36 27379 4626262330 2,37,907.3 1523.3 239430.6 68016.63274 0.961039883

Percentage growth (%)

1991 1992 1993 1994 1995 41.24592475 44.98604307 34.47028912 40.775733 14.15293124 31.72438825 1996 1997 1998 1999 2000 48.4917669 139.9909523 2001 2002 2003 26.7201112 43.56988118 21.61136882 38.73633116 16.98408141 26.07681756 13.6873028 2004 2005 2006 2007 2008 2009 2010 2011

RANKING OF LEADING TWO WHEELER COMPANY

Source: http://www.motorbeam.com/sales-figures/february-2013-bike-sales-figures-analysis/

CONCLUSION

Hero Honda is among the first choice of customers as it is ranked 1 st among its competitors. There is a significant growth is calculated over the period of time as it keep on increasing it market share year after year. Hero Honda Motors ,the world's largest two wheeler manufacturer continued its dominance of two-wheeler market by recording sales of 501,111 units in the month of December10, a surge of 33% over the corresponding month in '09. The year 2010 also marked the best ever calendar year for the company with cumulative sales of over 5 million units, a growth of 16.4% over the calendar year 2009. During the year, the company also witnessed 5 lakh plus monthly sales in October and December and also recorded 4 lakh plus monthly sales for eight consecutive months.