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ROSARY COLLEGE OF COMMERCE & ARTS
Navelim Salcete Goa
A Comprehensive study ofcompetitive analysis of Hero Maestro
Project Report
Submitted in partial fullfilment of the requirements for the award of The Bachelor
Degree in Business Administration
(A THREE YEAR FULL TIME PROGRAM IN MANAGEMENT)
Submitted by
Tejas Naik
Roll No. R-11-22
BBA 2011-2014
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Declaration
I Tejas Tulshidas Naik hereby declare that the present project report entitled project
on Shree samarth automotive has been prepared by me during the period from 21st
April 2012 to 1 June 2012 under the guidance of Mr. Atul Naik, sales & Marketing
Manager, Shree samarth automotive And Ms. Charlotte Fernandes, faculty member,
Rosary College of Commerce & Arts, Navelim- Goa
I also declare that this project has not been submitted nor shall it be submitted in
future to any other university or institution for the award of any other Degree or
Diploma.
Place: Rosary College of Commerce & Art (RCCA)
Navelim, Goa (India)
Date: (Tejas Naik)
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Acknowledgement
This making of any report calls for contribution and cooperation from many others
besides the individual alone. It is the result of meticulous effort put in by many minds
that contribute to the final report submission and this work too is not an exception.
Thus, one of the best parts of writing this is the opportunity to thank those who have
contributed towards it. First and foremost, I would like to take the opportunity to
express my sincere gratitude to sales & marketing manager of shree samarth hero
private limited for their valued insights, suggestions and continuous support, without
which this project would not have reached successful completion .I would like to
thank all the respondents who took time out of their busy schedule to have interaction
with me. All the above, made considerable contribution to which these few lines can
hardly do justice to their patience and generous support.
I am also truly grateful to the organization and all those people working at, Shree
samarth Hero for having patiently endured me and for spending their valuable time to
elucidate and demonstrate to me in detail about the working of the various
departments, throughout my placement. Their extreme co-operation and helpfulness
have proved as an equal factor of support to me.
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Table of content
Chapter No. Title Page No.
Certificate by the Company ii
Declaration iii
Acknowledgment iv
Executive Summary vii
Chapter 1.0 Introduction 8
1.1 Introduction to Hero
1.2 Company Profile 9
1.3 Introduction of the Company 11
1.4 Departmental overview
Chapter 2.0 Research & methodology 13
2.1 Title
2.2 Aims and objectives
2.3 Scope
2.4 Research Design
2.5Sampling2.6Methodology2.7limitations2.8literature review
Chapter 4.0 Conclusion 38
Recommendations 39
Annexure 40
List of references & Bibliography 41
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CHAPTER 1
Introduction
1.1The Hero Motocorp
Hero Motocorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's
largest manufacturer of two - wheelers, based in India. In 2001, the company
achieved the coveted position of being the largest two-wheeler manufacturing
company in India and also, the 'World No.1' two-wheeler company in terms of unit
volume sales in a calendar year. Hero Motocorp Ltd. continues to maintain this
position till date.
Vision
The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its bikes. Hero Motocorp Ltd., company's new
identity, reflects its commitment towards providing world class mobility solutions
with renewed focus on expanding company's footprint in the global arena.
Mission
Hero Motocorp's mission is to become a global enterprise fulfilling its customers'
needs and aspirations for mobility, setting benchmarks in technology, styling and
quality so that it converts its customers into its brand advocates. The company will
provide an engaging environment for its people to perform to their true potential. It
will continue its focus on value creation and enduring relationships with its partners.
Strategy
Hero Motocorp's key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and shareholder delight.
Manufacturing
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Hero Motocorptwo wheelers are manufactured across three globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are
located in the state of Haryana in northern India. The third and the latest
manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.
Products
Hero Motocorp offers wide range oftwo wheeler products that includes motorcycle
and scooters, and has set the industry standards across all the market segments.
Distribution
The Company's growth in thetwo wheeler market in India is the result of anintrinsic ability to increase reach in new geographies and growth markets. Hero
Motocorp's extensive sales and service network now spans over to 5000 customer
touch points. These comprise a mix ofauthorized dealerships,service & spare parts
outlets and dealer-appointed outlets across the country.
Brand
The new Hero is rising and is poised to shine on the global arena. Company's newidentity "Hero Motocorp Ltd." is truly reflective of its vision to strengthen focus on
mobility and technology and creating global footprint. Building and promoting new
brand identity will be central to all its initiatives, utilizing every opportunity and
leveraging its strong presence across sports, entertainment and ground- level
activation.
Key Policies
A company that believes in maintaining ecological standards along with business
standards.
"We must do something for the community from whose land we generate our
wealth." - Chairman Dr.Brijmohan Lall Munjal..
At Hero Motocorp, our goal isn't limited to business but encompasses the broader
spectrum of serving humanity through social initiatives. Hero Motocorp takes a stand
http://heromotocorp.com/http://heromotocorp.com/productshttp://heromotocorp.com/findadealer/findadealerhttp://heromotocorp.com/findadealer/findadealerhttp://heromotocorp.com/productshttp://heromotocorp.com/ -
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as a socially responsible enterprise respectful of its environment.Hero Motocorp has
been strongly devoted not only to environmental conservation programs but also
expresses the increasingly inseparable balance between economic concerns,
environmental and social issues faced by business. A business must not grow at theexpense of mankind but must serve humankind at large.
1.2 Introduction to CompanyThe company was started in the year 1989 by Mr.Srikrishna Thakur. The Poprietor of
the company is Mr. Damodar S. Thakur, son of Mr. Srikrishna Thakur. At Shree
Samarth Hero they believe that once you become a Shree Samarth Heros customer,
you will always be an Shree Samarth Heros customer. That's a promise
First Hero Honda showroom was started in Margao, Goa with small outlet of Hero
Honda just to start with the sales of vehicles. There was no proper storage space for
their vehicles and no service station according to Hero company norms. The
showroom had to serve their customers with sales and service at one place and the
storage should also be at the same place. In 2001 a new showroom at Verna was
inaugurated. It had a large space for storage and service centre and a great showroom
to show off all the Hero Motocorp vehicles in style, giving a better view to customers
about Hero Motocorp.
1.3Departmental overviewSales and Marketing Department
This Department plays a very vital role in the Company, this department is headed by
GM Sales, with sales manager, sales consultants. The main function of this
Department is to sell and advertise Hero bikes. Their duties are to attend to walk in
customers and attend telephone enquiries and also attend enquiries coming from
outdoor activities and respond back to customers with mails or telephone calls.
Whenever any potential customers enters the showroom, the sales consultant has to
explain to him all the features of the vehicle which the customer is intending to
purchase, the consultants are also liable to explain to the customers the required
information about loan, taxes. They also do follow up with customer enquiries.calling customers, booking appointments for servicing their vehicle. The sales
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consultants in the showroom are assigned with certain monthly target by the
Department which has to be attained by them. The sales consultants are considered to
be the face of the Company, so Shree Samarth Hero takes deep interest in providing
them time for training. Internal training is provided by Shree Samarth Hero to theiremployees.
Service Department
The Service Department is one of the major section of the company; this department
is headed by Works Manager, under him service manager and mechanics.
Pre-sales servicing is one of the major functions of this Department, where, before the
delivery, the bike is brought to the service station and inspected thoroughly. They do
follow ups they call customers and remind them about their servicing period and book
appointments for them.
Post- sales service after the servicing of the bike they call customers and take
feedback from them about the servicing done. This is standard procedure as per Hero
Motocorp. All the servicing carried out in the showroom and all the other necessary
information related to the bike serviced has to be intimated to the Head office in the
service department, for the record of the Company.
Human Resource Department
Human resource Department is headed by accounts manager as it small companyaccounts manager only looks after HR department their functions are recruiting they
recruit best candidates which are best in their field they ensure people who have
relevant skills, qualifications and experience .they conduct interviews put adds on the
classifieds if there is any job requirement in the company. Along with the salary, they
provide other necessary benefits to its employees such as Insurance, coverage
Provident Fund, Bonus, Gratuity etc
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Chapter 2
2.1 Title
Comprehensive study of competitive analysis on Hero Maestro
2.2 Aims and objectives
My aim is to do a competitive study on Hero Maestro and Honda Activa
Objectives are to conduct a survey and have a deep understanding why customers go
for Honda Activa over my company vehicle that is Hero Maestro.
2.3 Scope
To know why customers are going for Honda Activa instead Hero Maestro
2.4 Research Design
As the customers base is large for Hero Maestro and Honda Activa I Chose
Quantitative Research Design to attain better results through the survey
2.5 Sampling
I chose sample size of 150 customers of which 75 were Hero Maestro Customers and
75 were Honda Activa
2.6MethodologyPrimary data
Studying both the bikesthoroughly Personal observation of the bike, discussion with the Managers and Sales
executives and customers
Survey undertaken
Secondary data
Auto magazines, broachers and bike website
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2.7limitations The views of the people can be biased therefore it doesnt reflect true picture.
Due to time limit I could only survey 75 Maestro Customers and 75 ActivaCustomers
Views and the perception of the people changes time to time, hence the resultof the project may not be applicable time to time
2.8literature review
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Chapter 3
3.0 Analysis and data findings
3.1 Introduction to Hero Maestro
The Maestro is very rich in features to attract riders who are looking for a gear-less,
spacious and comfort ride. A wide and well-cushioned seat and a flat and broad foot-
board can accommodate anyone quite easily and high ground clearance makes it a
great bike. But one thing that is guaranteed to be a plus point about Maestro is the
extremely clever supply of storage areas. Besides the standard option of an under the
seat storage space which is spacious enough to hold a full size helmet along with a
couple of other small articles, a front side storage box that can come in very handy in
storing a lot of household objects comes as an optional accessory and can be installed
on demand. The new Hero Maestro scooter is available in choice of six colors,
including blue, green, white, black, silver and red.
Engine and performance
Hero Maestro has got calm and less noisy 109 cc engine giving out 8.2 PS of power
and a torque of 9.1 Nm and has an excellent quality engine. Taking top speed, Hero
Maestro can reach 90kmph , it is the real Maestro in city traffics. Comparing it to the
other available scooters in the market, it has the best performance than all the braking
is very good of the bike. Overall, its very affordable performance packed scooter. It
is quicker than the Activa in terms of roll ons and acceleration both. The linear power
deliver helps the scooter to make quick overtakes in crowdy traffics.
Looks and styling
Nice and great styling is what Maestro has. Large headlights increases the looks as
well as increases the illumination at the dark nights and side indicators adds to its
looks. The body is made up of plastic against the Activa which has a metal body,
giving the Maestro a new refreshing looks in the scooter sector. At the side tank
section, a chrome plastic emblem of maestro makes it a BIG name. Instrument
cluster is simple and descent looking with silver linings for a refreshing style. It
comes with an analogue speedometer and digital Kilometre clock and fuel indicator.
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Maestro is the first in class and the only scooter having the above mentioned
instrument cluster. The maestro has a under seat storage which increases its usability.
Ride Quality and handling
The ride quality of the Hero Maestro is the best. Its linked suspension (with hydraulic
dampers) at the front and mono shock at the rear, gives the scooter a perfect balance
and comfort. The Maestro also comes with Honda CBS (Combined Braking System
with 130mm drum brakes) so it is safe on the braking side. The ride position and
height is well designed for a comfortable ride in city.
Price and fuel economy
At the price of53,335 (OTR), At this price, the Maestro offers a complete package
in terms of looks, economy and ride quality. Hero makes sure that they stand shoulder
to shoulder with their old partners Honda and thus their Maestro gives an excellent
fuel economy of 52 kilometres for a litre.
3.2 Comparison of Activa and Maestro
Scooter Activa MaestroEngine
Type Air cooled 4 stroke OHC Air cooled 4 stroke OHC
Displacement 109cc 109cc
Max Power 6kw (8bhp) @7500 rpm 6kw (8.2bhp) @7500 rpm
Max torque 8.74Nm @5500 rpm 9.10 Nm @5500 rpm
Ignition Self & kick CDI system
Transmission V-Matic Dry, Auto centrifugal
clutch with V-Matic
SuspensionFront Spring loaded hydraulic
type
Bottom link with Spring
loaded hydraulic type
Back Spring loaded hydraulic
type
Unit swing with Spring
loaded hydraulic type
Electricals
Battery 12v 3Ah, maintenance free 12v 3Ah, maintenance free
Headlamp 35/35w 35/35w
Brakes
Front Drum, 130mm dia (with Drum, 130mm dia (with
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CMS) CMS)
Back Drum, 130mm dia Drum, 130mm dia (with
CMS)
Tyre size
Front 90/100-10 53j 90/100-10 53jBack 90/100-10 53j 90/100-10 53j
Fuel tank capacity
Capacity 5.3L 5.3L
Chassis
Ground Clearance 153mm 155mm
Wheelbase 1238mm 1240mm
Tyre Type
Q1) Which Model do you have?
Activa 75
Maestro 75
Total 150
I surveyed 150 people out of which 75 were Honda Activa customers and 75 were
Hero Maestro customers. The above graph shows that 50 % were Hero Maestro
customers and 50% were Honda Activa customers.
Q2) how do you came to know about this motor bike?
Graph A
In the above diagram we can see that Out of 75 respondents of Honda Activa users.
About 11% of the respondents came to know about the bike from the newspaper ads
about 12% came to know from the television advertisements 3% came to know from
the auto magazines and large number of people that is about 49% came to know about
Honda Activa from their friends and families and 25% came to know from others as
in company Road shows, Hoardings, seen on roads etc.
Graph 3.2
Graph 3.1
A B
Gra h 3.3
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Graph B
In the above diagram we can see that Out 75 responders of Hero Maestro users 15%
responders came to know about the bike from the newspaper about 4% responders
came to know from magazines. Most number of responders came to know from their
friends and family that is about 38% and remaining 24% people came to know from
others as in show room visit, seen on roads, hoarding etc
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Q3) Are you satisfied with the performance of the bike that you are currently having?
Graph A
In the above diagram people were asked whether they are satisfied with the
performance of Honda Activa. Out of 75 respondents 61% of the respondents said
that they are satisfied with the performance of the Honda Activa and remaining 39%
said they are not satisfied with performance of Honda Activa
Graph B
In the above diagram people were asked whether they are satisfied with the
performance of Hero Maestro. Out of 75 respondents large number of people that is
71% said that they are satisfied with the performance of Hero Maestro remaining
29% said that they not satisfied with the performance of Hero MaestroGraph 3.4
A B
Graph 3.5
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Q4) how is the mileage of the bike?
Graph A
In the above diagram people were asked about mileage of Honda Activa large number
of people said that its dissatisfying that is about 40% and 27% were neutral in their
decision and about 33% were satisfied with the mileage of hero Activa.
Graph B
In the above diagram people were asked about mileage of Hero Maestro large numberof people said that they are satisfied with the mileage of Hero Maestro that is about
47% out 75 respondents 33% said they are neutral in their decision and while
remaining said that not satisfied with mileage of the bike.
A B
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Q5) how you find the after sales services of the bike?
Graph A
In the above diagram people were asked about the after sales service of Honda
Activa. About 64% of respondents said that they are satisfied with the service about
22 % said that not satisfied with the service remaining 22% were neutral in their
decision.
Graph B
In the above diagram people were asked about the after sales service of Hero
Maestro. About 57 % were satisfied with the after sales service of Hero Maestro
about 16 % said not satisfied with the service about 27 % were neutral in there
decision.
Graph 3.4 Graph 3.5
A B
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Q6). Which factor below influence your buying decision?
Graph A
In the above diagram people were asked what influenced their buying decision while
buying Honda Activa 16% said price influenced their buying decision 13% said
mileage of the bike influenced their buying decision 16 % said performance 7% said
resale value 11% said status symbol and remaining 37% said other as in
unavailability of other vehicles in the market etc.
Graph B
In the above diagram people were asked what influenced their buying decision while
buying Hero Maestro 13 % said Price influenced their buying decision 16% said
mileage 19% said performance 3% said resale value 20% said status symbol and
remaining 29 % said others
AB
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Q7) how would you rate the following factors of bikes with respect to different
companies?
Average scoreMileage
Price
Performance
Maintenance
Looks
Brand image
Services
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Q8) would you buy a new bike if new bike comes in with better feature?
Graph A
3.3 Findings
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Chapter 4
4.1 Recommendations and conclusionsBoth scooters having same specificaions butmaestro is having some more function like digital fuel meter with service due indicator. Also
suspension is good . Maestro takes less time to acheive high seed of 60 km compared with
activa. Maestro has good suspension also. i have noted mileage of 45 km in city. a real
compition to honda in real mean. Maeastro better than Honda