61520495 marketing strategies of hero honda (2)
TRANSCRIPT
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SUMMER PROJECT
ON
MARKETING STRATEGIES
OF
HERO HONDA
Efforts By Dhruv VermaF 28A3906410099
ASB
Amity School of Business
Amity University
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ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in
collecting necessary information and making of the report. I am grateful to all of
them for their time, energy and wisdom.
Getting a project ready requires the work and effort of many people. I would
like all those who have contributed in completing this project. First of all, I
would like to send my sincere thanks to Mr. Vivek Ahuja for his helpful hand
in the completion of my project.
Dhruv Verma
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EXECUTIVE SUMMARY
The study, which I conducted on the In-depth Analysis of Hero Honda Motors
Ltd in the area of Marketing & Human Resource Management has been a
very gratifying experience at the outset, the objectives were to cover the
whole marketing strategies and Human Resource policies adopted by HHML.
The entire report has been effort to do just that.
Through out the study I found Hero Honda bikes are very new & use modern
technology in their bikes. As a result they give better performance then other
bikes in the market & required less maintenance. Hero Honda also provides
good after sale service to the customer.
Hero Honda has managed to put in spectacular performance going from
strength to strength despite increase in competition, the companys sales
have witnessed an up trend, registering an average growth of 42% in the
three years under review.
Hero Honda has managed to achieve this because of its strong brand image
and proven product quality underpinned the performance growth in recent
years. Apart from the strong brand Splendor the companys presence across
the spectrum of the motorcycle market helped it exploit the growing demand
for 4-stroke motorcycles.
In view of the increasing competition due to globalization and the expansion of
the economy .All industries need to constantly add more attributes andfeatures which consumer wants in two wheelers of their company .In context
company had to adopt more innovative and consumer friendly attributes so
that there product should be more popular among the customers.
Today in this present world the Marketing Strategy of Hero Honda in two
wheeler segment of India and are leading as the world number one two
wheeler company from the past three consecutive years.
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The research assigned to was to study the parameter ore the features that
effect most of the customer satisfaction in the Hero Honda motors limited &
BAJAJ Automobiles .There are many features which effect the two wheeler
company but important among all of them are the following :-
(1) Fuel efficiency
(2) Maintenance
(3) Availability of the product
(4) Resale value
(5) Look and style
(6) Image and brand
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TABLE OF CONTENTS
Chapter No. Topic
1. INTRODUCTION
About The Industry
Products
2. RESEARCH METHODOLOGY
Research Objective
Research Design
Data Sources
Primary Data
Secondary Data
Questionnaire Design/Formulation
Sample Design
Limitation of the Research
3. COMPANY PROFILE
History of Hero Honda comp.
S.W.O.T Analysis
4. DATA ANALYSIS
5. FINDINGS / CONCLUSION
6. RECOMMENDATIONS
7. ANNEXURE
QUESTIONNAIRE
8. BIBLIOGRAPHY
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INTRODUCTION
The Indian two-wheeler industry is dominated by three players, Bajaj, Hero
Honda and TVS Suzuki, who account for 80 percent of the total two-wheeler
market. The other players including Kinetic Engineering, LML and others
account for the remaining 20 percent of the market. The industry can be
divided into three broad segments: Scooters, motorcycles and mopeds. In the
scooters segment Bajaj is the market leader, Hero Honda is the market leader
in the motorcycles segment and in the segment of mopeds, TVS controls the
major chunk of the market.
Most Indian players in the two-wheeler industry had been into some kind of
strategic alliance, technical collaboration or joint venture with foreign players,
mainly Japanese firms. Hero-Honda, is a joint venture between the Munjal-
promoted Hero Group and Honda Motor Co. of Japan; TVS-Suzuki was an
alliance with TVS and Suzuki Motors (till September 2006); Bajaj-Kawasaki a
joint venture between Bajaj Motors and Kawasaki; and Yamaha-Escorts, a
joint venture between Escorts and Yamaha Motor Corp. (till June 2007).
Indian automobile market, be it the two-wheeler segment, the three-wheeler
segment or the car segment, is yet to come to a stage where all the models
are developed indigenously. For years now, Indian companies have been
dependent on their foreign joint venture partners or collaborators to provide
them with the technical know-how. This trend too is in for a change. Leading
the pack in this arena is Bajaj, which has been Successful at designing
models in-house. Bajaj's Safire and Spirit, have been able to bag the scooter
of the year award for 2006 and 2007 respectively. In fact, its Spirit was
adjudged the "Indigenous product design of the year" for the year 2000. The
recently launched Pulsar from the Bajaj stable is yet another home-grown
product, albeit in tandem with Japanese design house, Tokyo R&D. Bajaj has
been laying increased emphasis on its R&D so as to be able to launch new
products to tap the markets at all possible price points. Other companies too
are adapting the strategy of designing and developing products indigenously.
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TVS's Victor is yet another development in this direction and this indigenously
built model has been a success in the markets.
ABOUT THE INDUSTRY
Their operations cover spectrum of consumer and industrial application
including motorcycles, mopeds, automotive components and industrial
supplies. In each of these areas Hero is a pioneer and a leader. Hero Cycles
Ltd. is in the Guineas Book of World Records as the worlds largest bicycle
manufacturer.
Hero Motors Ltd. makes Hero-PUNCH: the most advanced light motorcycle.
Hero-PACER, PANTHER and ANKUR produced by majestic auto Ltd. areamong the most popular mopeds in the country.
Other companies in the HERO galaxy are Gujarat Cycles Ltd.: Indians most
advanced bicycle manufacturing unit; Munjal Showa Ltd.: Major O.E. supplier
of the stock industries: brand leader in shafts and hubs; Highway Cycle
industries: manufacturing free wheels and Sunbeam Castings: making
precision non-ferrous castings.
Modern technologies for systems have transformed the profile of HERO. Yet
the formula for success is unchanged A drive for quality and economy. A
commitment to ancillary development and uncompromising attention to the
common mans need
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HERO GROUP
BUSINESS HERO CYCLES
LIMITED
HERO CYCLES
LIMITED (UNIT II)
GUJARAT
CYCLES
LIMITED
Bicycles Established in 1956
in Ludhiana
Product : Bicycles
Established in
1988 in Sahibabad
Product: Bicycles
Established in
1988 in Baroda
Product : Bicycles
BUSINESS
Auto-Two
Wheelers
HERO HONDA
MOTORS LIMITED
Established in 1983 New
Delhi
Product: motorcycles
collaborator: Honda
motor co. Ltd., Japan
MAJESTIC AUTO
LIMITED
Established in
1978 Ludhiana
Product : mopeds
& fitness
equipment
HERO MOTORS
(A DIVISION OF
MAJESTIC AUTOLIMITED)
Established in
1988 Ghaziabad
Product: mini
motorcycles
Collaborator: steyrdaimler punch,
austria product:
scooters,
collaborators:
Malguti, Italy.
BUSINESS
Bicycle and
Auto
Components
ROCKMAN CYCLE
INDUSTRIES
LIMITED
Established in 1960
Ludhiana
Product:
Automotive &
Bicycle Chains;
HIGHWAY CYCLE
INDUSTRIES
LIMITED
Established in 1971
Ludhiana Product:
Freewheels &
Special Machine
Tools
MUNJAL SHOWA
LIMITED
Established in 1985
Gurgaon Product :
Stock Absorbers
Collaborator: Showa
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Steel & Aluminum
Hubs.
Manufacturing Co.
Japan
BUSINESS
Castings and
steel
MANJAL
CASTINGS
Established in 1981
Ludhiana
Product : Non-
ferrous Castings
SUNBEAM
CASTINGS
Established in 1987
Gurgaon Product :
Non- ferrous
Castings
HERO CYCLES-
COLD ROLLING
DIVISION
Established in 1990
Ludhiana Product :
Cold Rolled Steel
Sheets and Coils
BUSINESS
Services
HERO EXPORTS
Established in 1993
Ludhiana
Product :International
Trading Company
dealing in
Commodities &
Engineering Items
HERO
CORPORATE
SERVICES
Established in 1995
New Delhi Product:
Corporate Service inFinance, HDR, IT &
Strategic Planning
MANJAL SALES
CORPORATION
Established in 1975
Ludhiana Product:
Sole Selling Agentsof Bicycles and
Bicycles Parts for
India.
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HISTORY
The Honda motor company was incorporated in 1948. Since its inception,
Honda has become the large Japanese industrial concern among those
companies incorporated after World War II. It has also been established itself
as the worlds Largest manufacturer of the motorcycles, commanding 25% of
the motorcycle market and nearly 50% of the Japanese market.
Today Honda is acknowledged as the undisputed leader in the motorcycle
technology. Recognized the world over as a pioneer, the Honda name is
guarantee of the technological and the manufacturing excellence of any
product. Honda5s other areas of product excellence include Automobiles and
Power products (Lawn Movers, generators and Outboard motors.)
Honda motor company has 83 overseas production facilities in 35 countries
looked after by 93000 strong force. In 1995 its consolidated sales amounted
over Rs. 140000 crores.
CHAIRMAN PROFILE
Profile of Chairman of Hero Honda Ltd.
Mr. Brijmohan Lal, Chairman of Hero Group of Companies, is a first
generation entrepreneur of 1950s. After partition Mr. Munjal along with his
brothers started the business of bicycle components manufacturing in a
humble way at Ludhiana at a time when the country was beset with
bottlenecks of industrial infrastructure and investments. In his 50 years of
career as an entrepreneur, Mr. Lal has a trail of successes, but his demeanor
is unbelievably warm and loving. At this pinnacle of accomplishment, he is
accessible, forthcoming and friendly- be it with workers, professionals,
business associates or government officials.
Born on July 1, 1923, Mr. Brijmohan Lal advocates corporate governance and
ethical and value-driven management practices. He has been successful in
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steering the business with innovative ideas. He continuously provides group
companies foresight, advice in their business strategies.
Today, the group produces 5 million bicycles and I million two-wheelers
annually. It has a committed workforce of over 15000. The group companies
have been honored with best industrial governance and safety awards under
Mr. Munjals Chairmanship.
Besides managing a large organization, Mr. Lal spends consideration energy,
time and resources to strive for social upliftment of communities and villages
around the factories. He has set up various medical, educational facilities and
infrastructure, actively leads national business associations and also adds
value as Board members of Reserve Bank of India.
Mr. Brijmohan Lal Munjal and his brothers have nurtured the family by training
younger generation members into a distinct culture, which is unique in
providing quality management and enterprise to Indian industry.
REWARDS AND RECOGNITION
Mr. Munjal has received several prestigious awards in his illustrious career
over 50 years:
Mr. Brijmohan Lal Munjal received the Business Man of the Year award
by the Business Indian Group of publications for the year 1994.
Mr. Munjal was also presented the National Award for outstanding
contribution to the development of Indian Small Scale Industry by the
President of India in the year 1995.
He had also received the most admired CEO award from Business Baron
for the year 1999.
He was also awarded the Honorary Membership of the Indian Institution
of Industrial Engineering in 1992.
Mr. Munjal was awarded the Indians of the Century award by Times of
India in 2000.
The XLRI Institute (Jamshedpur) has conferred on him with the Honor of
Sir Jahangir Ghandy Medal for Industrial Peace in 2000.
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Mr. Brijmohan Lal Munjal is also the president of Dayanand Medical
College and Hospital at Ludhiana.
Mr. Brijmohan Lal has also been the member of many important industrials
and business delegations led by Prime Ministers and other ministers toproject the image of the country and also make others aware of the
business opportunities in India.
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PRODUCTS
A Product is something of value that is offered for sale or hire with the aim of
satisfying customer needs. It is a bundle of satisfaction that the customer
buys. A product may be a tangible offer to the market, which includes product
quality, variety, design, features, branding etc. It may also be intangible such
as provision of a service like training or education etc. Many products may
have tangible as well as intangible attributes. For example Daewoo Cielo car
is the tangible product and after sale services and mobile repair anywhere is
an intangible service.
PRODUCT LINE
A product line refers to a group of product clubbed together because they
have one of the above described characteristics in common. The number of
product lines carried by a firm at a given point in time is a function of its
resources and competitive position.
PRODUCT WIDTH
This refers to the number of different product lines marketed by a firm.
PRODUCT DEPTH
This refers to the numbers of product items and their variations (like size,
packaging, colors, etc) offered in each product line.
PRODUCT CONSISTENCY
This is the degree of similarity between product line in end use, technology
and production techniques, distribution channel etc.
The ideal product mix is an issue that varies from firm to firm and may be hard
to define and come by.
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POSITIONING OF THE PRODUCT
Positioning concerns what is in the minds of consumers, in particular in the
minds of your target group(s) of consumers. It is what the consumers think of
the product or the firm or there perception of the product offerings of a firm.
It is about the position your firm, the product, and the brand occupy in the
minds of particular group of consumers, the attributes they associate with your
product, and they have concerning the product. Positioning is something that
goes on in the consumers mind.
BRANDING
A brand is a name, term sign, symbol, or design, or a combination of them,
intended to identify the goods or services of one seller or group of sellers and
to differentiate them form those of competitors.
Branding is a way of labeling your particular product offering to distinguish it
from other competitors product offering.
TYPES OF BRAND NAMES
One name Many different names
Umbrella
corporate
Name
Family
Umbrella
names
Range
names
Separate
individual brand
names
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PRODUCT DESCRIPTON (HERO HONDA LTD.)
Hero Honda has launched the following motorbikes in the Indian market.
Hero Honda CD 100
Hero Honda CD 100 SS
Honda Sleek
Hero Honda Splendor
Hero Honda Street Smart
Hero Honda CBZ
Hero Honda joy
Hero Honda passion
Hero Honda Ambition
Hero Honda Karizma
Hero Honda Dawn
A brief description of these bikes is as follows:
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PRODUCT AND SERVICES
HERO HONDA CD 100
CD 100 The original Fill it, Shut it, Forget it bike is Indias first 4-stroke bike
and is still the Indias foremost. It is an economical and reliable bike which has
the ability to go on and on, year after year. The CD100 4-stroke engine is
derived from Hondas tough economic series range of engine, which makes it,
fuel-efficient. The bike is economical and easy to maintain with optimal oil
circulation of 50ml, for every 1000 kilometers. It has separate oil circulation in
the engine. Hence no possibilities of carbon deposits on piston rings, spark
plug and no silence to worry about.
CD 100 is an improved, easy to ride bike, with illuminated speedometer with a
color- marked economy zone indicating cruising range. The bike has a 97.2
cc, 7.2 hp at 8000- rpm engine. It has an electronic ignition and it weighs at
107 kg (kerb weight). It gives the maximum speed of SO kilometer per hour.
CD 100 comes in a four speed constant mesh all foot shift gears.
The bike is priced at Rs. 37000(ex-showroom Delhi) and at Rs 36000 (ex
showroom Mumbai. CD 100 is available in four colors candy Ruby red, Black,
Amazing Blue metallic and sierra green metallic). The bike confirms to the
year 2000 Euro emission norms.
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HERO HONDA CD 100 SS
The CD 100 SS is a bike that is meant to take on the toughest riding
condition, while continuing to enjoy the legendary fuel economy. The CD 100
SS adds a new dimension of strength to Hero Hondas world famous four-
stroke technology. The bike has a 97.2 cc, 7.2 hp at 8000 rpm. It has a large
ground clearance of 165 mm and it weights at 112kg(kerb weight).
The CD 100 SS has wider tires, to grip the road in any condition giving it
improved cornering stability and safety. The bike has large reinforced shock
absorbers, to soak up bumps on unkind roads, to protect the bike and to give
the ride more comfort. CD 100 SS also has an engine guard, to protect and
engine from the assault of sand, mud and stones, therefore giving it improved
performance. The bike comes with a transmission of 4-speed, constant mesh,
all feat shift gear and it has an electronic ignition. The CD 100SS has a fuel
tank capacity of 10.1 liters (including 2.8 liters reserve). CD 100SS is priced at
Rs. 39,000(ex-showroom Delhi) and at Rs. 37,000 (ex-showroom Mumbai).
The bike is available in the following colors (Candy Ruby Red, Black, Amazing
Blue Metallic, Sierra Green Metallic and Classy Maroon Metallic).
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HERO HONDA SLEEK
Hero Honda Sleek is a 97.2 CC1, 4-stroke, single cylinder, air-cooled bike,
that comes with a Electronic Ignition. The bike has a Multi-plate wet clutch
and it comes with a transmission of 4-speed constant mesh, all foot shift
gears. It has a Backbone frame type. The Sleek has a maximum power of 7.0
hp2 @ 8000 rpm and it gives a maximum speed of 85 Kilometers per hour.
The bike has a ground clearance of 165 mm. And It has a dry weight of 100
Kilograms. The Sleek has a fuel tank capacity of 10.3 liters (including 1.4 liters
reserve).
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HERO HONDA SPLENDOR
Hero Honda Splendor the worlds largest selling motor bike is a 4-stroke,
100cc driving machine. It has smashing good looks and gives excellent
performance. The bikes new engine gives unprecedented fuel efficiency. It
has a well-cushioned Long-slung seat that helps the rider to rest and ride at
the same time. Splendor has very good suspension, which works so well, that
one may never be able to find out what happens between the tires and the
bumpy roads. Splendor is a bike that met the pollution control standards of
1990s.
Splendor comes with a transmission of 4-speed Constant Mesh all foot shift
gears. It has an Electronic Ignition and it weight at 90 Kilograms (Kerb
weight). The bike has a maximum power of 7.5 Ps at 8000 rpm and it gives a
maximum speed of 85 kilometer per hour. The Splendor has a tabular double
crable type frame. The bike has a wheel base of 1230 mm and a ground
clearance of 159 mm.
Hero Honda Splendor is priced at approximately RS 41,000 (ex-showroom
Delhi) and at RS 39,000 (ex-showroom Mumbai). The Splendor is available in
the following colors (Black, Candy Ruby Red, Blaze Blue silver Metallic, Sierra
Green Metallic and Hi Granite Blue Metallic). The Splendor conforms to the
year 2000 Euro emission norms.
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HERO HONDA STREET SMART
Hero Honda Street Smart is a 4-stroke; 100cc bike which delivers great pick-
up, the bike is reasonably priced. The Street Smart comes with trendy front
shield, which makes it sturdier safer and smarter. The bike has Rotary gears
and Auto-Clutch, which makes it amazingly maneuverable. It has a storage
box, which makes it easy to carry bags, lunch boxes etc. The Street Smart
also has an automatic decompression, which makes it easy to start. The bike
also comes in a self-start model, which helps to reduce load on the battery
and enhances its life. Its a sheer convenience for riding. The Street Smart
has Electronic ignition and a background tubular type Frame. It has a ground
clearance of 133mm and it comes with a transmission 4-speed constant Mesh
all feat shift gears. Street Smart has a wheel base of 1205 mm.
Hero Honda Street Smart is priced at approximately Rs 32,000 (ex-showroom
Delhi) and Rs 36,000 (ex-showroom Mumbai). It is available in the following
colours (Candy Ruby Red, Black, Sierra Green Metallic and Purple Metallic).
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HERO HONDA CBZ
Hero Honda CBZ is a bike that is equipped with five gears and 156.8 CC
engines which generates 12.8 Ps power. The bike reaches from 0 to 60
kilometers per hour in just 5 seconds effortlessly touches the top speed of 100
kilometers per hour. The CBZ also has the widest rear tyre, with a unique
tread pattern that is not available on any Indian motorcycle. It also has a large
130-mm drum brakes, and also has an option of front disc brakes, which
enhances its braking performance.
The CBZ also has the Transient Power Fuel Control (TPFC) system which
helps in giving the bike quick acceleration. The bike also has the trip meter,
which measures the distance traveled in a trip. It also has the dynamic
vibration dampers incorporated in the handlebar, which ensures that the ride
is smooth and easy. The air injection system in the CBZ injects fresh air in to
the exhaust part. The unique trapezoidal headlights gives CBZ a stylish look
and helps the Rider to see clearly in the darkest to nights. The CBZ also has a
multi-lever lockable seat which provides storage space and doubles as an anti
theft mechanism for GDI unit RR unit and the battery. The bike also
incorporated the zero crank case evaporative emission, pollution control
feature so advance, that it is seen for the first time in India.
The Hero Honda CBZ is priced at approximately RS 57,000. The bike is
available in the following colors (Black, Tasmania Green, Tahitian Blue,
Candy Sparkling silver and Candy Blazing Red).
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HERO HONDA PASSION
Engine 4-stroke, single cylinder air cooled
OHC
Displacement 97.2cc
Maximum Power 7.5 Ps at 8000 rpmGear Box 4 Speed constant mesh
Clutch Multi-plate wet type
Max. Speed 85 kmph
Frame Tubular double cradle
Suspension Front
Rear
Telescopic Hydraulic fork Swing
Arm with 5 step adjustable
hydraulic damper
Tyre Size Front
Rear
2.75 x 18 x 4 PR
3.00 x 18 3/6 PRFinal Drive Roller Chain
Battery 12 V- 2.5 AH
Ignition Electronic CDI
Starting Kick Starter
Wheelbase 1235 mm
Ground clearance 159 mm
Length 1980 mm
Width 720 mm
Height 1060 mm
Kerb weight 116 mmFuel Tank Capacity 12.8 liters (Reserve 1.1 ltrs)
SPECIAL PHYSICAL FEATURES OF NEW BORN PASSION
PASSION is one of the classiest looking bike HERO HONDA Motors Ltd. has
ever made. Truly going by the traditions of its Corporate Image Leading
The Way, HERO HONDA Motors Ltd. has designed & introduced a bike truly
for the youth of the new century. Its a feast for your eyes
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SOME OF THE PHYSICAL FEATURES THAT ARE DESIGNED IN BIKE
PASSION
HEAD LIGHT
Trapezoidal head light with a multi-reflector lens in a well-designed visor gives
the motorcycle a stylish look. The headlight also has a position lamp. It comes
in handy* when you head light bulb is not working and can go a long way in
providing that extra safety at night.
MUDGUARD FRONT PORTION
Enhances safety for the rider.
FUEL TANK
Newly designed knee grip fuel tank has a capacity of 12.8 litres with a reserve
of 1.1 litres.
STORAGE KIT
A large lockable storage space for imported items.
THE ENGINE
4-stroke, 97.2 cc, single
Cradle Tubular Frame.
THE SIDE COWLING
The integrated side cowl gives a stylish look to the motorcycle. The matching
graphics gels very well with the overall sporty look of the motorcycle.
SHOCKERS
The rear shocker can be adjusted according to the terrain and the ride is as
comfortable on a village road as on a city highway.
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SEAT
A wide and comfortable seat makes for tireless riding. The seat is lockable
tool kit and important papers are safe under it. A helmet holder is also
provided.
BACKLIGHT
A new design taillight with multi reflector makes PASSON the first two
wheeler to use multi reflectors.
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HERO HONDA AMBITION
This 133cc engine gives you the lead. A mileage of 79 kmpl"makes sure
you stay on the road. And the Regal Crest styling makes you feel kingly. It's time to Move up in life. With Ambition, there's no looking back
The 133cc engine with an 11 bhp thrust. Ensured through AMI- Advanced
Microprocessor Ignition system.
A superbly shaped 12.5-litre capacity fuel tank, along with mileage that
ensures you comfortably cross many milestones!
The styling has a touch of royalty, and is topped with a Regal Crest.
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HERO HONDA KARIZMA
The Karizma features a 223cc, 17PS power pack that accelerates you from 0-
60 in 3.8 seconds. Distinctive styling and Mag alloy wheels make this bike stand
out before it races away from the pack.
Digital ignition and a constant vacuum carburetor facilitate better control of
ignition timing.
Priced at Rs. 89,220/- on road Mumbai the Karizma is available in seven
attractive shades.
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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research
problems.
Following steps have to be taken to obtain a correct result.
1. Define Research problem clearly
2. Formulate Hypothesis
3. Develop Research design
4. Collect Data
5. Analysis of Data
6. Interpret and Report
These steps were not fully followed in this study as the research was not
numerically inclined and was not based on primary data.
In this final project the topic is related to the Marketing Research and analysis.
The study of my research is descriptive and is related to the motorcycle
industry. This is the topic, which falls under market leadership, competition,
strategies and other policies of motorcycle Industry.
As my study was more focused on the strategic position of the key players in
the industry, the data was collected primarily through secondary source.
Though some dealers and showrooms were informally visited, and some
information was collected through an unstructured interview.
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METHODOLOGY USED
1. Research Design - The project was designed to be a Descriptive
Research, because the study required an in
depth. Look into the Motorcycle market, its
structure and Status.
2. Datacollection
Method - The basis of this project is the information
collected through Secondary data. In order to
get the view of those related in this market,
some dealers and showrooms were informally
visited.
3. Data Source - All the information was primarily collected
through Business Magazines, Newspaper
cuttings, Internet sites.
The structure of this research was decided while keeping readers in mind. It is
an attempt to put forward my study in easy and simple language.
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RESEARCH DESIGN
TYPE OF RESEARCH: - DESCRIPTIVE RESEARCH
Descriptive research includes Surveys and fact-finding enquiries of different
kinds. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what is
happening.
DATA SOURCES
There are two types of data.
PRIMARY DATA
The data that is collected first hand by someone specifically for the purpose of
facilitating the study is known as primary data. So in this research the data is
collected from respondents through questionnaire.
SECONDARY DATA
For the company information I had used secondary data like brochures, website of the company etc.
The Method used by me is Survey Method as the research done is
Descriptive Research.
RESEARCH INSTRUMENTS
Selected instrument for Data Collection for Survey is Questionnaire.
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QUESTIONNAIRE DESIGN/FORMULATION
Questionnaire: - A questionnaire consists of a set of questions presented to
respondent for their answers. It can be Closed Ended or
Open Ended
Open Ended: - Allows respondents to answer in their own words & are
difficult to Interpret and Tabulate.
Close Ended: - Pre-specify all the possible answers & are easy to
Interpret and Tabulate.
TYPES OF QUESTION INCLUDED:
DICHOTOMOUS QUESTIONS
This has only two answers Yes or No.
MULTIPLE CHOICE QUESTIONWhere respondent is offered more than two choices.
IMPORTANCE SCALE
A scale that rates the importance of some attribute.
RATING SCALE
A scale that rates some attribute from highly satisfied to highly unsatisfied
and very inefficient to very efficient
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SAMPLE DESIGN
Who is to be surveyed? The marketing researcher must define the target
population that will be sampled.
The sample Unit taken by me; General public of different age group, different
gender and different profession
EXTENT:-
Where the survey should be carried out?
I have covered entire residential area of Delhi city for the survey
TIME FRAME:-
When the survey should be conducted?
I conducted my survey for 8weeks from 10th may to 10th july
SAMPLING FRAME:-
The source from which the sample is drawn
SAMPLING TECHNIQUE: -
How should the respondent be chosen?
In the Project sampling is done on basis of Probability sampling. Among
the probability sampling design the sampling design chosen is stratified
random sampling.
Because in this survey I had stratified the sample in different age group,
different gender and different profession
SAMPLE SIZE/ POPULATION SIZE: -
How many people should be surveyed?
My sample size is 75
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LIMITATIONS OF RESEARCH
The geographical area was very much limited to residential area & so the
results are not particularly reflection of the current behavior.
BIASES AND NON-COOPERATION OF THE RESPONDENTS
Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored in Hero
Honda Auto Mobile Com.
Most of the people in India take their policies in the period preceding March
(for tax saving purposes) & so the response to initial contacts were not all
encouraging and that has been the primary reason in the inability to quantify
the results large enough so as to deduce any relevant outcomes.
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COMPANY PROFILE HERO HONDA
MOTORS LIMITED
Hero Honda Motors Limited was incorporated on 19 th January 1984 as a
result of joint venture collaboration between the worlds largest manufacturer
of Motorcycles Honda Motor Company of Japan and the worlds largest
manufacturer of bicycles Hero Group. The Honda Motor Company of Japan
and the Hero group both contribute an equal 26% share in the equity, with the
rest being with the public.
Hero Honda is today the largest 100-cc motorcycle selling company in the
Indian market. Hero Honda motorcycles have become synonymous with
economy and set standards in the Indian two-wheeler market for their fuel
efficiency, low emission levels and better quality. All this along with the fact
that the companys products are designed for the Indian market and driving
conditions gives it a distinct competitive edge.
Hero Honda Motors Limited launched its first motorbike Hero Honda CD 100
in May 1985. After the launch of the first motorbike, it introduced the Hero
Honda CD 100 SS, the Street Smart, Hero Honda Splendor and the Hero
Honda CBZ, motorcycles in the Indian market.
Hero Honda has acquired around 43% market share in the Indian motorcycle
market. The company has a wide network of dealers and service points with
emphasis on customer care and service. The company has 360 dealers in
India. Hero Honda is the only Two-wheeler Company, which has introduced
automated workshops at all major dealership showrooms. The company has
220 automated workshops in India. In 1990-91, Hero Honda promoted a
company- Hero Honda Fin lease, to provide lease finance to its customers.
Hero Honda was awarded the Best Productivity performance award by the
National Productivity Council for the Automobile industry for the year 1990-91.
The company also received the Economic Times Harvard Business School
Association of India award against 200 strong contenders.
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The company apart from being the market leader in the Indian motorcycle
market also fulfills its obligation to the society. It operates a mobile dispensary
van in the service of those living within 10-Kilometer radius from its plant.
Hero Honda also conducts eye-camps each year also cataract operations on
a charitable basis. The company has, also established the Raman Kant
Foundation, a trust to work exclusively in the area of socio cultural and
educational developments. Hero Honda Motors Limited under its Chairman
Brijmohan Lal Munjal has made tremendous growth and expansion in the
Indian two-wheeler market and has been successfully maintaining its position
as the market leader over the years.
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OVERVIEW
GENERAL INFORMATION
Registered and
Corporate Office
: 34, Community Centre
Basant Lok, Vasant Vihar,New Delhi-110057
Tel:6142451 (9 lines,) 6144121
Fax:6143321, 614321, Gram: HONDABIKE
Works : DHARUHERA PLANT
69th Km. Stone Delhi-
Jaipur Highway
Dharuhere-122100 Dist.
Rewari (Haryana) Tel:
01283-42131-35 Fax:
0128-42399
GURGAON PLANT
37TH Km. Stone Delhi-
Jaipur Highway
Gurgaon-122001
Haryana
Tel:0124-372129-29
Fax: 0124-373141-42
Distance of Work
International Airpot
Head Office
:
:
54 Kms.
60 Kms.
22 Kms.
28 Kms.
Area
Total
Covered
:
:
2,48,000 sq. mts.
61,200 sq. mts. 24.7&
2,83,360 sq. mts.
51,200 sq. 18.07%Technical &
Financial
Collaborators
: Honda Motors Co. Ltd.
No.1 1, 2 Chome
Minami aoyama, Minato Ku,
Tokyo 107, Japan
Tel: 3-3423-111 Telex: J22678 HONDAMATR
Fax: 3-3423-2442
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THE ORGANISATION
Hero Honda Motors Ltd. Unit II is located at 37 th km stone from Delhi on Delhi-
Jaipur highway at Gurgaon (Haryana), amidst clean industrial surroundings
with wide open green areas and lawns.
The factory building itself is refreshingly different. The plant layout is so
designed as to ensure maximum movement of men and material. Maximum
attention is paid to the employees convenience and mobility. The emphasis
on quality is apparent in the clean and congenial working environment in
which the employees can put in their best.
Advanced integrated technology can be seen at work in every operation be it
Press shop, Weld shop, Engine assembly, Frame assembly and final
inspection. An outstanding feature is the most sophisticated and advanced
Engine Plant for the manufacture of the engine components. Another highlight
is the efficient water treatment plant. After treatment the water is pumped into
artificial lakes used for horticulture.
As the modern and technology in the world would come to naught without the
corresponding development of the human values and attributes. Hero Honda
management has realized this need and have made a conscious effort to
create unique work culture in the company. The culture has evolved through a
unique synthesis of the Indian and Japanese styles of management.
EXPANSION PLANS AND FUTURE OUTLOOK
Earlier, HHML has faced capacity constraints and lost significant market share
to competitors during FY95 and FY96. With demand for motorcycles on the
upward curve, the company commissioned a new plant at Gurgaon, with a
capacity of 150,000 vehicles pa in FY97. Capacity at Dharuhera plant in
Haryana has also been expanded from 300,000 vehicles to 350,000 vehicles
during F.Y. 98. In the future too the company has indicated to invest in capital
equipment and regularly introduced new models. The future outlook for the
motorcycles segment looks positive with it capturing a larger share of the cake
from scooters. With customers having become more discerning in terms of
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features and aesthetics, their preference has shifted towards bikes. With
adequate manufacturing capacities and a leading world player as its partner,
HHML is well being intended entry of Honda in the two-wheeler market two
year hence.
ANCILLARIES
HHML has a strong network of ancillaries comprising inter alia, a number of
Munjal group companies such as Munjal Castings, and Munjal Showa. Also
there are dedicated vendors like Rico Auto. HHML has indigenous more than
95% of its components. In line with Honda philosophy, HHML source most of
its component requirement from third party vendors. This allows greater
flexibility in production planning. Materials cost is relatively high and
overheads are lower.
SOCIAL CONTRIBUTIONS:
Hero Honda, believe in a wholesome approach towards development in a
large agrarian economy like India, by assimilating our rural sub systems to the
main steam of development. By doing so we can rural income, generate
employment and can profit basic amenities in the rural areas. In the process
of procuring the ISO 14001 certification the company has implemented the
environment management program which, inter alia, includes the training of
400 employees and codification of guidelines for the control of wastage of
resources. The tree plantation plan of the company continues with the same
vigor.
EXPORTS
In continuation of its pursuit to increase its Export Base, Hero Honda Motors
participated in SAARC & CII Trade Fairs. The response of the product shown
in the fairs was very encouraging & the company expects to clock higher
exports sales during the current Financial Year. During the Year under review
Guatemala, Chile & Costal Rica was added as new product & service
markets.
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MARKETING STRATEGIES
MARKETING
Marketing is challenging and exciting. The solving of marketing problems
required insight, experience and analytical ability. Take the case of a
company faced with the problem of increasing its sales. Increase in the sales
at the expense of profits may not be a desirable objective. Again there are
many ways in which sales can be increased, e.g. by finding new customers or
selling more to existing customers, by increasing advertising and by reducing
the price. The marketing manger must decide which strategy or combination
of methods he should adopt for increasing his sales profitably. He must also
keep in touch with the changing needs and desires of the consuming public as
well as his competitors activities. Thus marketing is interesting, as it required
the marketing manger to be dynamic and not complacent for continuous
prosperity of his organization.
THE MARKETING FUNCTION
However the meaning of marketing is not often clear to people who use the
word. To a salesman it means selling whereas to an advertising manger it
means advertising. High-sounding definitions have also been advanced. For
example, Paul Mazur defined it as the delivery of a standard of living of
society. Thus was expanded by Prof. Malcolm McNair to the creation and
delivery of a standard of living.
Marketing is the primary management function which organizes and directs
the aggregate of business activities involved in converting customer
purchasing power into effective demand for a specific product or service and
in moving the product or service to the final consumer or user so as to
achieve the company-set or other objectives.
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RELEVANT MARKETING FORCES
Consumer habits.
Consumer attitudes and motivations.
Trade structures and practices.
Trade attitudes and motivation.
Types of competition.
Relation of supplies and price to demand.
Position and share of the market.
Trends of competitive behavior.
Government controls, which are applicable.
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CD DAWN
Presenting CD Dawn, the true-value 4 stroke, 100cc motorcycle from Hero
Honda. A motorcycle that encompasses the legendary Hero Honda values of
fuel-efficiency, economy and rock-solid dependability
TOUGH TRACK SUSPENSION
The CD Dawn comes with a unique suspension that smoothens and absorbs
bumps on unkind roads and provides you with continuous riding comfort.
DOUBLY STRONG TUBULAR FRAME
Its double tubular-cradle frame by imparting extra stability to the motorcycle
ensures an exceptionally stable ride.
This and other features - like the legendary Hero Honda mileage, the first-of-
its-kind 2-year warranty in the category and a price that will make you smile, is
what makes the new Hero Honda CD Dawn - Value Nayae Zamane Ki
PRODUCT STRATEGY
Hero Honda shifted its focus from catering to the fuel efficient conscious
consumer to try and occupy other segments of the motorbike market and
therefore the new product launches from Hero Honda in the last three year
have been in this direction. The company has also upgraded some of its bikes
to stay in contention and to meet Euro emission norms. The new underlining
theme for the company One for everyone has led to the launching of new
products, which are as follows:
1) Street Smart: Hero Honda introduced its Street Smart in 1997. The
company who were more inclined towards the scooters and who thought
that the scooters were safer than the motorcycles, thus Hero Honda
decided to launch the Street Smart. The bike was built in such a way that it
resembled more like a scooter, than a motorcycle, but actually it is a
motorbike i.e. it is a hybrid
2) CBZ: Hero Honda introduced the CBZ in 1999. The bike was launched as
a result of the changing trends amongst the Indian customers from fuel
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efficient bikes that were heavier, more powerful, trendy, stylish and
sophisticated. This was done to cater to those customers who wanted to
buy motorbikes for fun, thrill and great driving experience rather than being
cost conscious. CBZ was also launched to acquire the market share from
the heavy motorbike segments, as the company did not have any heavy
motorbike. It was the first time that Hero Honda had made a shift from 100
cc bikes to a 156cc bike.
With the launch of these two motorbikes and various other motorbikes in the
pipeline, Hero Hondas strategy is to get into those segments of the
motorcycle market where they have not made inroads earlier.
Hero Honda continues to have the strategy of parity pricing. They have
neither taken the root of doing heavy discounting nor have they tried to
occupy the premium position. However with the launch of CBZ the company is
gradually getting into the area of premium positioning. The company keeps on
making changes in the pricing of the bikes, whenever there is an increase in
inputs.
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PRICE
Price is one of the important elements of the marketing mix, but lately, it has
come to occupy the centre-stage in marketing wars. The amount of money
that customers have to pay for the product is called price.
Price is the amount of value a product a masses in the market. To a
manufacturer, price represents quantity of money received by the firm or
seller. To a customer, it represents sacrifice and hence his perception of the
value of the product.
Pricing is the only elements in marketing mix that creates revenue, the other
generate costs.
Every firm has different Pricing objectives. A firm can choose from the
following
a) Survival in a competitive market.
b) Maximize current profits and return on investment
c) Balance price over product line
d) Maximize sales growth.
PRICING STRATEGY OF HERO HONDA
Hero Honda continues to have the strategy of parity pricing. They have
neither taken the root of doing heavy discounting nor have they tried to
occupy the premium position. However, with the launch of CBZ the company
is gradually getting into the area of premium positioning .The company keeps
of making changes in the pricing of the bikes, whenever there is increase in
inputs
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Ambition ( Drum & Kick )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 43,857.00 48,512.00Calcutta 45,343.00 48,500.00
Chennai 45,814.00 49,469.00
Delhi 44,612.00 46,873.00
Mumbai 45,513.00 49,806.00
Pune 43,865.00 47,973.00
Ambition ( Disc & Kick )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 46,514.00 51,413.00
Calcutta 48,066.00 51,400.00
Chennai 48,663.00 52,367.00
Delhi 47,461.00 49,770.00
Mumbai 48,283.00 52,820.00
Pune 46,530.00 50,870.00
Ambition ( Disc & Self Start )
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 51,004.00 56,314.00
Calcutta 52,667.00 56,300.00
Chennai 53,474.00 57,260.00
Delhi 52,275.00 54,666.00Mumbai 52,964.00 57,912.00
Pune 51,034.00 55,767.00
CBZ
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 51,192.09 56,579.71
Calcutta 53,993.73 57,698.73
Chennai 54,939.00 58,120.00Delhi 53,340.74 55,811.74
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Mumbai 58,705 63,213
Pune 51,799 56,657
SPLENDOR
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 40,948 45,331
Calcutta 41,612 44,550
Chennai 41,739 45,310Delhi 41,080 43,281
Mumbai 41,831 45,763
Pune 40,322 44,122
CD100 SS
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 38,375.91 42,530.54
Calcutta 39,003.26 41,800.26
Chennai 39,932.00 42,950.00
Delhi 38,507.68 40,664.68
Mumbai 39,709 42,797
Pune 37,722 41,295
CD100
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 36,896.88 40,915.80
Calcutta 37,494.76 40,199.76
Chennai 38420.00 41,410.00
Delhi 37,023.05 39,155.05
Mumbai 38,992 42,027
Pune 37,231 40,762
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PASSION PLUS
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 41,898 46,403
Calcutta 42,574 45,549
Chennai 42,732 46,857
Delhi 41,885 44,127
Mumbai 43,816 47,920
Pune 42,232 46,198
PASSION PLUS DISC
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 44,494 49,237
Calcutta 45,212 48,150
Chennai 45,365 49,592
Delhi 44,482 46,950Mumbai 46,541 50,882
Pune 44,853 49,048
SPLENDOR+ DRUM
Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 40,447 44,818
Calcutta 41,111 46,500Chennai 41,223 45,321
Delhi 40,579 42,788
Mumbai 42,351 46,328
Pune 40,822 44,666
SPLENDOR+ DISC
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Prices (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 43,043 47,653
Calcutta 43,749 49,200Chennai 43,856 48,001
Delhi 43,175 45,311
Mumbai 45,076 49,290
Pune 43,444 47,516
CD DAWN
Prices* (in Rupees)
City Ex. Showroom Price On Road Price
Bangalore 31,379.00 35,213.00
Calcutta 31,899.00 33,999.00
Chennai 30,899.00 34,800.00
Delhi 31,899.00 33,944.00
Mumbai 32,065.00 35,147.00
Pune 30,899.00 33,880.00
*This price includes the Celebration discount of Rs. 1001/-
PLACE
The place element of the marketing mix concerns decisions regarding how the
company or firm makes their products available to the consumers. It involves
the various activities a company undertakes to make the product accessible
and available to the target customers. This is the distribution element of the
marketing mix. It also understands the various types of retailers, wholesalers,
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and physical distribution. Place in broader term includes Channels, Coverage,
Assortments, Locations, Inventory, Transport, etc.
There are three broad decision areas in distribution. These are channel
strategy, channel management and physical distribution.
CHANNEL STRATEGY
A channel is a pipeline through which the product is passed to get from the
manufacturer to the end-user.
LENGTH OF A CHANNEL
The numbers of intermediary channels are used to designate the length of a
channel.
A zero level channel (also called direct-marketing channel). It consists of a
manufacturer selling directly to the final customer.
Manufacturer Consumer
A one level channel contains one selling intermediary such as a retailer.
Manufacturer Agent/dealer/retailer Consumer
A Two level channel contains two intermediaries
Manufacturer Wholesaler /dealer/Retailer Consumer
A Three level channel contains three intermediaries.
Manufacturer Distribution Wholesaler Retailer Consumer
CHANNEL MANAGEMENT
Channel management ensures that the firm manages there intermediaries so
that they can get the best out of them. It is about the relationship that the firm
has with their intermediaries, the margins they give them, the training and
support they provided and the activities and service that the firm requires from
them in exchange.
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PHYSICAL DISTRIBUTION
Physical distribution concerns the logistics of getting your product from the
factory floor to the end user. It is about the issues such as the re-ordering of
stock by intermediaries; whether to use trucks or train to transport the
products; whether it is better to have one factory and several dispersed
warehouses factories from which the firm transports the finished goods direct
to wholesalers and retailers.
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CHANNEL OF DISTRIBUTION IN HERO HONDA
Hero Honda continues to have the same policy of directly approaching the
dealers. However the company has made some changes in the dealership
requirements. The company has now divided its into three categories, A, B
and C depending upon the status of the town. Hero Honda has made some
regulations and its dealers are bound to fulfill specific requirements for their
showroom and workshops in terms of area. The company has also started
focusing on the rural marketing such as Agartala (Tripura), Tinsukia (Assam)
and Bhagalpur (Bihar). The company has also increased the number of
dealers from 350to 400.
DISTRIBUTION CHANNELS-
Hero Honda has very strong Distribution channel in India. Hero Honda
distributes its products through Regional officer, Authorized dealers Etc.
HERO HONDA IN INDIAN HAS 3500 AUTHORISED DEALER
Criteria for selection of distributions;
1. Financial position to the distributors
2. Goodwill
3. Situation of show room
4. Past record
5. Experience
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PROMOTION
Promotion concerns the message the firm sends out to potential consumers. It
provides information and persuades people. It creates awareness, stimulates
demand, differentiates the product and influences public behavior. Promotion
wont make a bad product that no one wants a success; although the absence
of promotion might be that a good product is not successful. Promotion
includes all the activities or tools a company uses to communicate or promote
its product in the market.
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PROMOTIONAL TOOLS OR PROMOTION MIX
PERSONAL SELLING:
It involves personal confrontation either by phone or face. It is an expensive
and time consuming tool of promoting the product.
ADVERTISING:
It is defined as a paid non-personal communication with a target (usually
mass) market. It is cost effective and can reach a large number of people. It
can also be used for long term or short term objectives.
There are various forms or mediums through which firms can advertise.
BROADCAST MEDIA
Television
Radio
Cinema
PRINT MEDIA Newspapers
Magazines
Leaflets
OUTDOOR MEDIA
Posters and Billboards
PUBLIC RELATIONS AN PUBLLICITY:
A public relations is an umbrella term and refers to the totality of the
organizations behavior with respect to the society in which it operates. They
maybe regarded as good or bad and is reflected in the companys reputation
and image.
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SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly the
case that some sponsorship goes on to generate positive publicity for the
organization.
SALES PROMOTION:
It is direct inducement which offers an extra value of incentive for the product.
It is directly related to sales and induces an immediate response from the
consumers.
Trade promotion: These campaigns are run for the trade (intermediaries
who stock or push the product) to encourage them or stock or push the
product.
Consumers sales promotion: These are sales promotions aimed at the
end customer.
DIRECT MARKETING:
It is an interactive system of marketing which uses one or more advertising
media to affect a measurable response at any locations.
DIRECT MARKETING INCLUDES:
Direct mail
Telemarketing
Door to door selling
Direct response advertising: Phone now or fill in the coupon ads.
Home shopping of various types.
Mail order.
Factors that guide a marketers decision in selecting a promotion mix:
(A) Nature of product
(B) Overall marketing strategy
(C) Buyer readiness stage
(D) Product life cycle stage.
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PROMOTION POLICY
A. COMPANY GIVE ADVERTISEMENT IN DIFFERENT MEDIA VEHICLES
TIME TO TIME. LIKE IN TV, MAGAZINES, NEWSPAPER, ETC.
B. HERO HONDA ALSO ORGANISES FREE SERVICE CAMPS EVERY
YEAR.
C. HERO HONDA ALSO TAKE PART IN TRADE FAIR
D. HERO HONDA WITH THE HELP OF ICICI BANK PROVIDES LOAN TO
THE CUTOMERS & ALSO PROVIDE EASY MONTHLY INSTALMENT
SCHEME TO CUSTOMERS.
HERO HONDA GIVES HUGE COMMISSION TO ITS DEALERS.
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SWOT ANALYSIS
STRENGTHS
Hero Honda introduced first-stroke bike in the India market Hero Honda gives 80 km/litre.
Huge sale network (3500 Dealers)
Better sale service
WEAKNESSES
Suppose to be very sophisticated
Not fit for rural India.
OPPORTUNITIES
Hero Honda is the first manufacture to launch eco-friendly bikes with 4-
stroke engines. They have attained a strong good will and popularity in
the industry and the consumers.
Therefore, it has huge potential to retain existing consumers and
develop new market share.
As Government policies are amended against pollution in metro cities,
Hero Honda being 4-stroke bike manufacture have great opportunities
to explore its new innovations and technologies.
THREATS
Main Threats for Hero Honda are their competitors like: -
Bajaj Auto
TVS-Suzuki
Escorts Yamaha
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DATA ANALYSIS
1. Please mention your age group
18-20 21-2526-30 31-3536- Above
18-20
9%
21-25
33%
26-30
11%
31-3537%
36 Above
10%
2.) Please mention your income group (per annum in thousand)
75-100 100-125125-150 150-175
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175 & above
75-100
17%
100-125
57%
125-150
11%
150-175
11%
175 above
4%
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3) Gender
Male Female
Female
45%Male
55%
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4. Name three motorcycle companies that come to your mind
Hero Honda Motor Ltd.Bajaj Auto Ltd.
Escort Yamaha Motors Ltd.Royal EnfieldTVS Ltd.
61
0
5
10
15
20
25
30
35
40
45
Yamaha LML TVS Bajaj
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5. What are the things that you look while purchasing a bike?
Fuel efficiencyLooks
Low maintenance costReliability(less chances of breakdown)Least physical effortsLow price
62
71
14
33
66
0
10
20
30
40
50
60
70
80
Maintenance
cost
Looks Physical efforts Fuel economy
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6. Which other bike would bike you have preferred to buy?
Yamaha LMLTvs motors Bajaj Pulsar
63
71
14
33
66
0
10
20
30
40
50
60
70
80
Maintenance
cost
Looks Physical efforts Fuel economy
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CONCLUSIONS
The study, which I conducted on the In-depth Analysis of Hero Honda Motors
Ltd. in the area of Marketing & Human Resource Management has been a
very gratifying experience at the outset, the objectives were to cover the
whole marketing strategies and Human Resource policies adopted by HHML.
The entire report has been effort to do just that.
Through out the study I found Hero Honda bikes are very new & use modern
technology in their bikes. As a result they give better performance then other
bikes in the market & required less maintenance. Hero Honda also provides
good after sale service to the customer.
Hero Honda has managed to put in spectacular performance going from
strength to strength despite increase in competition, the companys sales
have witnessed an up trend, registering an average growth of 42% in the
three years under review.
Hero Honda has managed to achieve this because of its strong brand image
and proven product quality underpinned the performance growth in recent
years. Apart from the strong brand Splendor the companys presence across
the spectrum of the motorcycle market helped it exploit the growing demand
for 4-stroke motorcycles.
At the lower, end, the company has CD 100 and CD100 SS and at the middle
level splendor, passion & joys. The CBZ the CBZ range is targeted, at the
premium segment. Thus one may say that the marketing strategies adopted
by Hero Honda have really paid-off, as the company has constantly managed
to increase its market share and also increase its sales .Which is really
amazing for a company which has been a market leader to maintain its strong
position in the wake of growing competition from its competitors who have
been trying to grab a strong share in the market by launching latest
technology products.
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Last three data show that demand of Hero Honda bikes increase & market
trends indicated that in future more demand for Hero bikes expected.
Hero Honda has been very understanding to its employees. It treats all its
employees as the biggest asset of the company. Its innovative H.R. policies
are made to ensure that the best of talent, which the company employs,
receives the best of talent, which the company employs, receives the best of
remuneration. Also the non-monetary incentives given to the employees are
such as to maintain the motivation to an time high.
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RECOMMENDATIONS
No matter how much on organization progresses it always lack something.
These are shortcoming of every company. After completing my report on new
Hero Honda motors Ltd., I have some suggestions to offer. The suggestions
can be proved useful for the company as they have feasibility and viability.
The Recommendations are: -
Hero Honda Motors only manufacture a wide range of 4-stroke bike. But in
my opinion 2 stroke bikes have a better pick-up. So in order to letter to the
need of a large segment of customers, who want a better pick-up bike,
Hero Honda should go into the manufacture of 2 stroke bikes.
The company has always targeted urban sector of Indian population. But
in the rural sector Escorts, Rajdoot enjoy a great market share. So,
therefore Hero Honda should target this upcoming market.
Hero Honda should keep a strict watch on competitions. For instance
Yamaha has introduced a 4-stroke bike YBX whose features are almost
same as Splendors.
The company should work more on public relation.
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ANNEXURE
QUESTIONNAIRE
CONSUMER SURVEYName: ______________________
Address: _____________________
Q1. Please mention your age group
18-20 21-2526-30 31-35
36- Above
Q2.) Please mention your income group (per annum in thousand)
75-100 100-125125-150 150-175175 & above
Q3) Gender
Male Female
Q4) Martial Status
Married Unmarried
Q5) please mention your occupation 0
Officials Clerical or SalesmenStudent First Jobbers Retired
Q6) Name three motorcycle companies that come to your mind
Hero Honda Motor Ltd.Bajaj Auto Ltd.Escort Yamaha Motors Ltd.Royal Enfield
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TVS Ltd.
Q7) What are the things that you look while purchasing a bike?
Fuel efficiency
LooksLow maintenance costReliability( less chances of breakdown)Least physical effortsLow price
Q8) How did you get to know about Hero Honda that you having at present?
AdvertisementFamily informationFriends recommendationDealers recommendation
Q9) Which other bike would bike you have preferred to buy?
Yamaha LMLTvs motors Bajaj Pulsar
Q10) Prefer Hero Honda splendor than other bike because of:
Fuel economyLess physical effortsBetter looksLow maintenance cost
Q11) Would prefer TVS Victor to Hero Honda Splendor because of:
Fuel economyPriceBrand imageLow maintenance cost
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Q12) what is the image of HERO HONDA in your mind?
EconomicalDurable
Smooth BikeSafe BikeRough and Tough
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BIBLIOGRAPHY
BOOKS
Marketing Management Kotler Philip Marketing Ghandhi J. C.
Principles of Marketing Palmer Adrian
Marketing Management Ramaswamy V. S.
NEWS PAPERS
The Economic Times.
The Times of India.
MAGAZINES
Business World June 2006
India Today.- June 2007
WEB SITES
SPECIFIC SITES
www.herohonda.com
www.indianinfoline.com
www.premjis.com
www.sirindia.com
SEARCHING SITES
www.google.com
www indiatimes com