STS AutomobileINDUSTRY OVERVIEW

Two-Wheelers

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. This distinction was achieved

due to variety of reasons like restrictive policy followed by the Government of

India towards the passenger car industry, rising demand for personal transport,

inefficiency in the public transportation system etc.

The Indian two-wheeler industry made a small beginning in the early 50s when

Automobile Products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began

trading in imported Vespa scooters and three-wheelers. Finally, in 1960, it set up a

shop to manufacture them in technical collaboration with Piaggio of Italy.

Although various government and private enterprises entered the fray for scooters,

the only new player that has lasted till today is LML. Under the regulated regime,

foreign companies were not allowed to operate in India. It was a complete sellers

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 manufacturers 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 350cc bikes and Escorts 175cc bike. The two-wheeler

market was opened to foreign competition in the mid-80s. Moreover, the then

market leaders -Escorts and Enfield - were caught unaware by the onslaught of the

100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel-

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STS Automobileefficient low power bikes, demand swelled, resulting in Hero Honda - then the only

producer of four stroke bikes (100cc category), gaining a 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 for

motorcycle segment was brought in by Japanese motorcycles, which grew at a rate

of nearly 25% CAGR 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 witnessed a steady growth of 14% leading to a 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 purchases. In the 90s, this trend was reversed with

the introduction of scooterettes. In line with this, the scooter segment has

consistently lost its part of the market share in the two-wheeler market.

In 1990, 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

0.4mn vehicles. Barring Hero Honda, all the major producers suffered from

recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992. The

reasons for recession in the sector were the incessant rise in fuel prices, high input

costs 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 a fall in profits

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STS Automobile

INTRODUCTION OF HERO MOTOCORP

Hero MotoCorp formerly Hero Honda is a motorcycle and scooter manufacturer based in

India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda

of Japan. The Company is the largest two wheeler manufacturer in India. The 2006 Forbes

200 Most Respected companies list has Hero Honda Motors ranked at 108.

“Hero” is the brand name used by the Munjal brothers for their flagship company Hero

Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was

established in 1984 as the Hero Honda Motors Limited at Dharuhera India. Hero MotoCorp

has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar

in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.

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.

Number 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

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STS AutomobileInvestments (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 associates. The remaining 44, 64,000 shares were offered at par for

public subscription during November.

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STS Automobile

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Parent Company Hero Group

Category Motorcycles, Scooters

Sector Two-Wheelers

Tagline/ Slogan Hum mei hai Hero

USP

Wide product variety, excellent brand equity & high

customer loyalty

STP

Segment

Young boys looking for fast sporty bikes for Indian

roads

Target Group Young boys in the age 18-30 middle class

Positioning Every person has a hero and a winner within one’s self

Product Portfolio

Brands

1. CBZ                                        2. Karizma

3. Passion                                   4. Pleasure

5. Splendor                               6. Impulse

SWOT Analysis

Strength

1. Huge brand equity and one of the biggest players in

the two wheelers Indian market

2. Excellent R&D, and wide variety of products in every

segment.

3. Excellent distribution, over 3000 dealerships and

service centres.

4. Good advertising and excellent rebranding from Hero

Honda to Hero Moto Corp.

Weakness

1. Absence in the premium bike segment.

2. High imports for its spare parts i.e. over 30% imports.

3. Most of the products have similar features and low on

design and innovation.

1. Two-wheeler segment is one of the most growing

STS AutomobileVISION AND MISSION

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 two wheelers. 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

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STS Automobile

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.

BRAND

The new Hero is rising and is poised to shine on the global arena. Company's new

identity "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.

MANUFACTURING

Hero MotoCorp two wheelers are manufactured across 3 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.

DISTRIBUTION

The Company's growth in the two wheeler market in India is the result of an

intrinsic ability to increase reach in new geographies and growth markets. Hero

MotoCorp’s extensive sales and service network now spans over to 6000 customer

touch points. These comprise a mix of authorized dealerships, service & spare

parts outlets, and dealer-appointed outlets across the country.

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STS AutomobileHISTORY AND DEVELOPMENT

“Hero” is the brand name used by the Munjal brothers for their

flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and

Honda Motor Company was established in 1984 as the Hero Honda Automobile

Limited at Dharuhera, India. Munjal family and Honda group both owned 26%

stake in the Company. In 2010, it was reported that Honda planned to sell its

stake in the venture to the Munjal family.

During the 1980s, the company introduced motorcycles that were

popular in India for their fuel economy and low cost. A popular advertising

campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasized the

motorcycle's fuel efficiency helped the company grow at a double-digit pace since

inception. The technology in the bikes of Hero Honda for almost 26 years (1984–

2010) has come from the Japanese counterpart Honda.

Hero MotoCorp has three manufacturing facilities based

at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants

together are capable of churning out 3 million bikes per year. Hero MotoCorp has a

large sales and service network with over 3,000 dealerships and service points

across India. Hero Honda has a customer loyalty program since 2000, called the

Hero Honda Passport Program.

The company has a stated aim of achieving revenues of $10

billion and volumes of 10 million two-wheelers by 2016–17. This in conjunction

with new countries where they can now market their two-wheelers following the

disengagement from Honda. Hero MotoCorp hopes to achieve 10 per cent of their

revenues from international markets, and they expected to launch sales

in Nigeria by end-2011 or early-2012. In addition, to cope with the new demand

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STS Automobileover the coming half decade, the company was going to build their fourth factory

in South India and their fifth factory in Western India. There is no confirmation

where the factories would be built.

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STS AutomobileHIGHLIGHTS OF HERO MOTOCORP

1956 -Formation of Hero Cycles in Ludhiana (majestic auto limited)

1983-Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan

Shareholders Agreement signed. 1985- CD 100 launched.

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 aluminium and steel components.

1990- The Company was planning to launch a new model motor cycle-CD

100 SS suitable to semi-rural conditions.

1994 The Company issued 39, 79,500 bonus shares to the existing

shareholders in the ratio of 1:4. And Splendor launched.

1997 - 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.

1998- 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.

1999 - 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.

2001- 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

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STS Automobile 2002- Japanese automaker Honda Motor for the first time decides to source

motorcycles from its Indian joint venture Hero Honda to sell as 'Honda'

brand name in Vietnam

2003 - 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 and Karizma

launched.

2005- Two-wheeler major Hero Honda on October 5 announced launch of

its first scooter 'Pleasure'

2010- The joint venture of Herohonda got split

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STS AutomobileOTHER ACTIVITIES

HOCKEY

Hockey is India's national sport, and Hero is committed to doing its part to promote

and popularize the sport. In 2010, Hero MotoCorp extended its support to Hockey

by sponsoring the 'Hockey World Cup 2010' that was held in India. 2 years after

this, Hero Motocorp was also the sponsor of the 'FIH Road to London 2012'

tournament.

The company is proud to associate with, and will continue to endorse this great

sport in the future.

GOLF

Hero MotoCorp began its association with the prestigious Indian Open Golf

tournament in 2005. The tournament has helped catapult the popularity of golf in

India. Illustrious golfers from around the world participate in this annual event,

which boasts of the largest prize fund sanctioned solely by the Asian Tour.

CRICKET

Our association with cricket goes a long way. Hero MotoCorp has in the past

sponsored major cricket tournaments in association with International Cricket

Council (ICC), including the cricket World Cup and the Champions Trophy. Hero

has also been associated with IPL.

SPORTS ACCESSORIES

Wouldn't you love to play your favorite shots of cricket with the bats that Virender

Sehwag prefers 'Hero' custom cricket bats that Sehwag loves, available in Kashmir

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STS Automobileand English Willow, nurtured in India, can now be purchased at select Hero

MotoCorp dealerships and distributors across the country.

Kashmir Willow bats require constant knocking and oiling to strengthen it for use

in a cricket match. Knocking is done to compress the fibres of the willow blade

together which helps the bat bear the impact of the ball. English Willow nurtured

in India is by nature a soft fibrous wood. Its natural moisture and ability to be

pressed in the manufacturing process gives great ball striking qualities.

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STS AutomobileAWARDS TO HERO MOTOCORP

2013

Green Pioneer Award - 2013

"Business Leader of the Year" Award by Hon'ble President of India, Shri. Pranab

Mukherjee, at the AlMA Managing India Awards 2013 on April 11, 2013

(Conferred on Mr. Pawan Munjal)

"Business Leader of the Year" Award in the Auto (Two Wheelers) category by

Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia, at

the NDTV Business Leadership Awards 2013 (Conferred on Mr. Pawan Munjal)

CFO of the year Award (Conferred on Mr. Ravi Sud)

2012

Business Leader in Automobiles (two-wheelers) at the NDTV Profit Business

Leadership Awards 2012 (Conferred upon Mr. Pawan Munjal)

Best value for Money Bike Maker and Best Advertising in Two Wheelers

Category at the Auto India Best Brand Awards 2012

Digital Advertiser of the year at the Indian Digital Media Awards (IDMA) 2012

Three awards (Launch Event of the year, Rural Engagement Progamme and Live

Patron Award for Marketing Excellence) at the WOW Awards organised by

EventFAQs

Advertiser of the year 2012 by Indian Digital Media Awards 2012

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STS Automobile Innovation in Loyalty Marketing Award (Initiative: Hero GoodLife Utsav) by

Colloquy Loyalty Awards

TPM Excellence Award 2012 by JIPM (Japan Institute of Plant Maintenance)

Best Learning & Development Award

Asias Third Best Employer Brand Award

ET Now Talent & HR Leadership Award

8th Recruiting and Staffing Best-in-Class Award

Global HR Excellence Award

India Human Capital Award by Human Capital

Business Technology Excellence Awards 2012

Business Technology Innovation Awards 2012

Top Green IT Enterprise Award

IT Transformers Award

Quality Circle Excellence Award at National QC Convention - 2012

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STS AutomobileINTRODUCTION OF STS AUTOMOBILES

Mr. Dhananjay Sankhe (CEO STS AUTOMOBILES) 

At STS Hero, our main focus is to meet and exceed the needs of our customers.

Our meticulous attention to detail and understanding in after sales services has

helped us set new standards. It has also enabled us to become one of the leading

Hero MotoCorp dealers in India 

We are committed to ensuring the very best in sales and service at all times. Our

well-trained team of specialists ensures a comprehensive and unrivalled service

experience every time. 

As always, we are more than happy to answer all your queries on our product and

service offerings, so do get in

The STS Hero is well established in Boisar, it was set up in 2012, under

companies’ act 1956. Their main aim is to satisfy customer’s needs by providing

service in two-wheelers. The name of the company in itself suggests a different in

it. There are total employees. The major competitions of STS Hero are better

service for two-wheelers, etc. STS Automobile is the small scale unit.

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STS Automobile The STS Hero began operation in 2012 under the leadership of Mr. Dhananjay

Sankhe for the better service provider of HERO two-wheelers and they are

providing service department, accident department, advantage department with a

diversified product range and a reputed market presence.

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STS AutomobileHISTORY AND DEVELOPMENT OF STS

Mr.Dhananjay Sankhe who was already having a transport business wanted to

diversify & after lot of thinking got the idea of taking up sales & service of two

wheelers.

The idea of getting dealership comes in his mind by a newspaper. The newspaper

contains an advertisement for dealership of Service and Spare parts (SSP) of hero

Honda. Because that time the company name is Hero Honda.Then he plan to grab

this opportunity and so, he plan to go for the interview for the same. The nature of

Mr.Sankhe Forced hero Honda to give dealership to Mr.Sankhe.

Initially they had an office in Harmony plaza Boisar for sales and service by the

name STS Automobile, the service renders STS Automobile was remarkable.

They were expert in service and always worked hard for the satisfaction of the

customer. They tried to build loyalty and trust worthiness amongst the customer as

well as employees, which lead to increase in sale.

They had created niche goodwill in the market. After smooth functioning of SSP

department. They thought to increase their business.

So then they approached the company for the same. The hero Honda was already

impressed by STS Automobile performance so, by not take much time they

thought to give them Authorized Dealership for sales of bikes.This again was an

opportunity to prove their excellence in their area also.

Now STS Automobile was shifted to a new place with excellent infrastructure,

more no. of Staff, trained employees, well equip service stations, etc.

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STS AutomobileFor faster service they increase their number of ramp to 8 and 12 Expert

mechanics, were also ready with instruments for rectifying the bikes. The

Customer had given huge priority so STS Automobile has a customer care and

redressed department.

They have various attractive offers and schemes for the customers during the

festivals. They are also engaged in social work. They mostly recruit the people

from nearby vicinity and Provide various sponsorship activities to locality for sport

like cricket tournament, Dahihundi, etc.

They also sponsor annual cultural programs at SAS institute of management

studies Saravali Boisar. Were they conduct an program called “SAS HERO” an

Talent hunt program for the college from Dahanu to Borivali and reward the

winner with an attractive cash price.

STS Automobile also has its sub center in Palghar. And AED in Vikramgard and

test ride center at Chinchani.

The excessive hard work and constraint monitoring of the activities for the smooth

flow of business has resulting for growth flow of business has resulting for growth

of STS Automobile.

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STS AutomobileCOMPANY AT A GLANCE:

Name of the Company:

STS AUTOMOBILE PVT.LTD

Address:

Plot No J-96, Nr Mahavir Chambers

Tarapur MIDC Area, Distt Thane

Boisar 401506

Maharashtra

Ph: 02525-645077 645188/645177/266353/

Email: sts.boisar@heromotocorp.biz

Top Management:

Mr.Dhananjay Sankhe

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STS Automobile Workshop Manager:

Mr.Vivek Sankhe

Parts Manager

Mr.Navjot

Customer Relationship Manager

Mrs.Asmeeta

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STS AutomobileTop Products

New Karizma R Splendor NXG

New Karizma ZMR HF Deluxe

HF Dawn Splendor Plus

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STS Automobile

New Pleasure Passion Plus

Splendor Pro Passion Pro

Maestro Passion Xpro

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STS Automobile

Super Splendor Glamour FI

Achiever Implus

Hunk CBZ Xtreme

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STS Automobile Bankers:

HDFC finance

L&T Finance

Location on map:

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STS AutomobilePRODUCTION DEPARTMENT

Organization structure:

Below is the organizational structure of STS Automobile

Introduction

The very essence of any business is to cater needs of customer by providing

services and goods, and in process create value for customers and solve their

problems. Production and operations management talks about applying business

organization and management concepts in creation of goods and services.

Production

Production is a scientific process which involves transformation of raw material

(input) into desired product or service (output) by adding economic value.

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Top management(Dhananjay sankhe)

General manager(Lambian)

Sales manager(Subhod)

Sales persons

Account manager(Jayesh)

Assistant account person

Workshop manager(Vivek sankhe)

Formens and workers

STS AutomobileProduction through separation: It involves desired output is achieved through

separation or extraction from raw materials. A classic example of separation or

extraction is Oil into various fuel products.

Production by modification or improvement: It involves change in chemical and

mechanical parameters of the raw material without altering physical attributes of

the raw material. Annealing process (heating at high temperatures and then

cooling), is example of production by modification or improvement.

Production by assembly: Car production and computer are example of production

by assembly.

Importance of Production Function and Production Management

Successful organizations have well defined and efficient line function and support

function. Production comes under the category of line function which directly

affects customer experience and there by future of organization itself.

Aim of production function is to add value to product or service which will create a

strong and long lasting customer relationship or association. And this can be

achieved by healthy and productive association between Marketing and Production

people. Marketing function people are frontline representative of the company and

provide insights to real product needs of customers. An effective planning and

control on production parameters to achieve or create value for customers is called

production management.

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STS AutomobileOperations Management

As to deliver value for customers in products and services, it is essential for the

company to do the following:

1. Identify the customer needs and convert that into a specific product or

service (numbers of products required for specific period of time)

2. Based on product requirement do back-ward working to identify raw

material requirements

3. Engage internal and external vendors to create supply chain for raw material

and finished goods between vendor → production facility → customers.

Operations management captures above identified 3 points.

Production Management v/s Operations Management

A high level comparison which distinct production and operations management

can be done on following characteristics:

Output: Production management deals with manufacturing of products

like (computer, car, etc) while operations management cover both

products and services.

Usage of Output: Products like computer/car are utilized over a period of

time whereas services need to be consumed immediately

Classification of work: To produce products like computer/car more of

capital equipment and less labour are required while services require

more labour and lesser capital equipment.

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STS Automobile Customer Contact: There is no participation of customer during

production whereas for services a constant contact with customer is

required.

Production management and operations management both are very essential in

meeting objective of an organization.

Plant Location:

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STS AutomobileMaterial handling:

Material handling is one of the important part or subject to be

concern for any service sector unit.

In STS also more emphasis is given to material handling, so that customer get

more satisfy.

As there is no movement of raw material in STS Automobile they pay more

attention to the quality of finish product.

Warehousing:

A warehouse is a commercial building for storage of goods. They

are usually large plain building use to load and unload goods from trucks.

STS Automobile has warehouse capacity of 200-300 no of bikes.

Purchase function:

As they deal with the finished product directly, they wouldn’t

purchase raw material.

They place order directly with the manufacturing unit using online software

(S.S.G.C) specially designed for STS Automobile.

Order should be place before a month age and it should be depends on no. of bikes.

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STS AutomobileMARKETING DEPARTMENT

Introduction

Definition of Marketing:

Marketing is a social and management process by which individuals and group

obtain what they need through creating and exchanging products and value with

other.

By PHILIP KOTLER

Definition of Marketing Management:

Marketing management means analyzing, planning, implementing and controlling

the marketing activities with the objectives of marring the desired exchange

mutually advantageous to the seller and the buyer. – By PHILIP KOTLER

1) Selling focuses on the need of the seller, marketing on the needs of the buyer.

2) Marketing with the ideas of stashing the needs of the customer by the means of

the Product and the whole customer of the things associated with creating and

finally consuming it.

3) The marketing concept rests on four pillars, target marketing, marketing

profitability.

4) The marketing concept takes an outside in perspective.

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STS AutomobileOrganization structure of marketing department:

Marketing mix

The marketing mix is a business tool used in marketing and by marketing

professionals. The marketing mix is often crucial when determining a product or

brand's offering, and is often synonymous with the four Ps: Price, Product,

Promotion, And Place; in service marketing, however, the four Ps have been

expanded to the Seven Ps to address the different nature of services.

Product

A product is seen as an item that satisfies what a consumer needs or wants. It is a

tangible good or an intangible service. Intangible products are service based like

the tourism industry, the hotel industry and the financial industry. Tangible

products are those that have an independent physical existence.

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Sales Manager

General Manager

Top Management

Sales Executives Billing Department

Insurance Department

STS AutomobileThe marketer must also consider the product mix. Marketers can expand the

current product mix by increasing a certain product line's depth or by increasing

the number of product lines.

Product mix:

According to Philip Kotler “Product mix (also called as product assortment) is the

set of all products and items a particular seller offers for sale”. Product mix

pertains to the variety of products a company sells. There are four dimensions to

product mix, namely, width, length, depth and consistency.

Width: The width of the product mix consists of all the product lines that the

company has to offer to its customers. If we take P&G for example, the width of

the product line would consist of Hair Products, Oral care, Soaps and Detergents,

Baby Care, Personal Care and Home care.

Length: Length of the product mix includes the total number of products offered

to the customers. The number of products provided by P&G is 16 which is the total

length of its product mix.

Depth: Depth of a product mix pertains to the number of variants that are offered

in each product in the line. If we take the example of Ariel we can see that it is

available in a lot of sizes (100 GM, 250 GM, 1kg, etc.) and different types like-

Front O Matic and Fragrances etc.

Consistency: Consistency of a product mix refers to the relationship of the various

product lines in terms of end use, product requirements, distribution channels, or

some other way. P&G’s product lines are all consistent because they only

concentrate on selling FMCG products.

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STS AutomobileProduct line: (length and width):

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Two wheeler Passion xpro

IgnitorMaestroImpulesHF DawnHF DeluxePleasureSplendor plusSplendor NXGPassion proSuper splendorGlamourSplendor proGlamour PGM FiAchieverXtremeHunkKarizmaKarizma ZMR

STS Automobile

Product depth:

Where,

No of items (length):19

No of lines (width):01

No of items (depth): 12

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XproProPassion

PlusNXGSuperProiSmart

Splendor

Glamour PGM FiGlamourKarizmaZMRKarizma

STS Automobile

PRICING

Introduction

Pricing is a very crucial matter for the marketing manager because it

affects the demand, sales promotion, competitive strength of the business unit, ego

satisfaction of the customers and ultimately the profit. Sometime, it happens that

efficiency of other functional areas is attached by the faulty price decisions.

Therefore, extra ordinary care should be taken at the time of marketing pricing

decisions.

Definition of pricing:

“Pricing is the element in the marketing mix that creates sales revenue,

the other elements are costs”.

Economist defines prices as the exchange value of a product or service always

expressed in money.

Money (price) = Balance of expectations or satisfactions.

Include in the bundle of expectations may be physical product plus other

attributes such as delivery, installation, credit, return privileges, after sales

servicing and so on.

Methods of Pricing:

STS Hero is follows Cost oriented method or cost based methods of pricing:

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STS Automobile

STS are following these factors:

Ex. Showroom prices

+

RTO charges

+

Insurance charges

+

Road Tex

=

On Road Price

+

Optional cost (GL+ACC)

=

Total price

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STS AutomobileDifferent price of the product:

NO

.MODELS OF BIKE

PRICE IN RS.

(on road)1 CD DAWN DRK SCR 50587

2 CND DLX DRK CCR 54622

3 CND DLX DRS CCR 57043

4J2-HF-CD DELUXE DRS

CCR58285

5SPLENDOR PLUS DRK

SCR57602

6SPLENDOR PRO DRS

CCR59588

7SPLENDOR PRO DRK

CCR61947

8SPLENDOR PRO DRS

SCR60706

9SPLENDOR PRO DRS

SCR(SPL)63189

10J1-SPLENDOR PRO DRS

SCR (SPL)62568

11SPLENDOR ISMART

DRS SCR62898

12SPLENDOR ISMART

DRS CCR64140

13 PASSION PRO DRS CCR 63375

14 PASSION PRO DSS CCR 65672

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STS Automobile15 PASSION PRO DRK CCR 61016

16 IGNIATOR-DRUM SELF 75104

17 IGNIATOR-DISK SELF 77587

18 SUPER SPL DRS CCR 67162

19 GLAMOUR DRS CCR 69370

20 GLAMOUR DSS CCR 71854

21 GLAMOUR DSS FI CCR 81010

22PASSION XPRO DRUM

SELF66517

23PASSION XPRO DISK

SELF68876

24 XTREME DSS CCR 81451

25 XTREME DDS CCR 85012

26 ACHIVER DSS CCR 75547

27 HUNK DSS CCR 85330

28 HUNK DDS CCR 89055

29IMPULSE DISC SELF

SPOKE88372

30 KARIZMA (NEW) 100012

31 KARIZMA ZMR FI 125414

32 PLEASURE DRS CCR 57805

33PLEASURE DRS CCR-

SPL EDI59046

34PLEASURE DRS MCR-

NEW60547

35PLEASURE DRS CCR-

NEW62319

36 MAESTRO DLX 64304

39 | P a g e

STS Automobile

Place

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STS AutomobileLevel:

Warehouse:

STS Automobile has very large warehouse which can store 200-300 bikes or

scooters.

Promotion

Consumer promotion tools:

1. Coupons

2. Premiums (gifts)

3. Free trails

4. Product warranties

5. Cash refund offers

6. Exchange fai

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Hero Motocorp

STS Motors

Customer

STS AutomobilePhysical Evidence

Physical evidence is the material part of the service. There is much

physical evidence, which is as follows:

1. Front Part of Showroom

2. Banners

3. Uniforms:

For Males

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STS Automobile

For Females:

4. Sign boards

5. Logo

6. Brochures

43 | P a g e

Technician

T-shirt&

Trousers

Sales T-shirt

& Jeans

Frontline

supervisor

Shirt&

Trousers

Works

manager

jacket

Sales

saree

Sales salwar

suit

STS Automobile7. Building

8. Company’s website

Peoples

Peoples deliver service in all sorts of settings. It’s an important element of

the service marketing mix. If you go to an organized event such as the Olympic

then everything about the experience is undertaking by peoples. Behind the scene

there are project manager, staffs and accountant. The people deliver the service

and this is the same for the any other organized organization.

Process

Here process is more about the customer interference; it’s about how the

staff or management handles with their clients or customers.

FINDINGS44 | P a g e

STS AutomobileThe study finds that majority of customer were highly influenced by the comfort of

the bike. It is important to note that experienced customers are one of the

important influencing factors behinds a number of purchases.

Following are the other important findings of the study,

Age:

Majority of the customers falling under the age group of 20-30

Buying preference:

Majority of the customer prefer comfort as an important factor while making the

purchase decision of a bike.

Style:

Most of the customers were influenced by the style of the bike.

Comfort:

Most of the customers were influenced by the comfort of the bike.

Mileage:

Majority of the customer prefer mileage as an important influencing factor.

Price:

Most of the customers were influenced by the price of the bike.

Product features:

Most of the customers were influenced by the product features of Hero’s bike.

Technology:

Most of customers were influenced by the technology of the Hero’s bike.

Parts and service availability:

Most of the customers were influenced by the parts and service availability of the

Hero’s bike.

Brand perception of customer:

Most of the customers were influenced by the brand image of Hero.

45 | P a g e

STS Automobile Purchase of buying:

Majority of the customers were purchased their bike for personal purposes.

Advertisement:

Majority of the customer were influenced by the advertisement.

Experienced users:

It is important note that experienced customer become an important influencing

factor behind a number of purchases.

Customer satisfaction:

Majority of the customer were highly satisfied about the performance of the bike.

46 | P a g e

STS AutomobileCONCLUSION According to me Mr. Dhananjay Sankhe sir is very passionate about his work and

he start from scratch and he makes dream come true. Because sir knows his aim and

he had lots confidence on his work. After studying the whole organizational

processes and procedures we have rated the firm 8.5/10.

The below suggestions will improve the organization’s development.

We have learned from this training that how to influence the customers, various

marketing techniques, etc.

According to me, no other company can beat this company in the years to come

because of its strong brand name in the market. This company would be successful in

the years to come as the company has good amount of brand loyal customers. When

there is talk of bike, the first thing that comes to mind is hero motocorp because of

strong brand image. In our study the main emphasis was towards the marketing mix

elements (product, place, price and promotion). The analysis is totally based on the

marketing mix elements.

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STS AutomobileSUGGESTIONS

Means of advertisement:

The firm has to increase the means of advertisements i.e. through radio

channels, local TV channels and local newspapers.

This will increase the sales of the firm.

Company should make plan for take interest in cruiser segment.

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STS AutomobileBIBLIOGRAPHY

Books

Financial Management –by I M Pandey

Marketing Management –by Philip Kotler

Production Management –by K. Ashwathappa

Internet:

www.wikipedia.com

www.businessdictionary.com

www. sts hero.heromotocorpdealers.com

www.heromotocorp.com

Top management by:

Mr. Dhananjay Sankhe

(CEO of STS Automobile)

Mr. Lambiar

(General Manager)

Workshop management by:

Mr. Vivek Sankhe

(Workshop manager)

Account management by:

Mr. Jayesh

(Account manager)

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