HERO HONDA MOTORS LTD , INDIA

“Hum Mein Hai Hero”

The two-wheeler industry has been in existence in the country since 1955.

The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India

Hero Honda Motors Limited, based in Delhi, is the world's Largest manufacturer of motorcycles .

A joint venture that began in 1984 between the Hero Group of India and Honda of Japan.

Hero Honda's Splendor is the world's largest selling motorcycle.

Type : Public company BSE:HEROHONDA MFounded: January 19, 1984 in Gurgaon,Haryana, IndiaHeadquarters : New Delhi, IndiaKey people: Brijmohan Lal Munjal (chairman &

founder) Toshiaki Nakagawa (joint managing

director) Pawan Munjal (CEO)Industry: AutomotiveProducts: Motorcycles, ScootersRevenue: U$ 2.8 billionWebsite: www.Herohonda.com

Hero Honda is world’s third largest 2-wheeler maker.

In the mid-1980s, Foreign companies permitted to

enter the Indian market through minority joint

ventures.

Four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Motor Company

(Kinetic Honda)

The 2006 Forbes 200 Most Respected companies list

has Hero Honda Motors ranked at 108. 

Today Hero Honda has an assembly line

of 9 different models of motorcycles .

Currently the largest producer of

Two Wheelers in the world.

Sold 3 million bikes in the year 2005-06.

Vision of the Hero Honda is “to offer the highest quality at a reasonable price to meet the customers’ expectations and to exceed them”.

MISSIONHero Hondas mission is to strive for synergy

between technology,ststem and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers.

Being the most fuel efficient Company.To develop Appropriate product & excellent

Quality. To Meet the demands of the sophisticated

markets in Europe & America. To reach an unassailable pole position in the

Indian Two Wheeler market. To maintain high standard of ethics & social

responsibilities.

1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated - 1994 : New motorcycle model - "Splendor"

introduced  2000: 4,000,000th motorcycle produced 

Splendor declared 'World No. 1' - largest selling single two- wheeler model 

2001: One million production in a single year : 5,000,000th motorcycle

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2003: Becomes the 1st Indian Company to cross the 7 million sales Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced

2005 : Hero Honda is the World No. 1 for the 4th year in a row Super Splendor , CD Deluxe , Glamour ,Achiever introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 : Hero Honda is the World No. 1

for the 5th year in a row

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APPROACHES

(ORIENTATION)

EXTENT JUSTIFICATION

1.Production concept Partially

Applicable

It is having good demand all

over India and it is supplying

as per the demand in the

market.

2.Product concept Partially

applicable

In most of the Hero Honda

brands, special features like self

start, digital speedometer &

other things are not included.

Ex : Hero Honda CD 100, CD

Dawn are not having these

features like self start, digital

speedometer. By this we can

justify that this company is not

adopting fully but adopting by

partially.

3.selling concept Partially

applicable

The company is adopted this

concept partially.

Ex : Offers during special

occasions.

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda bikes gives good mileage. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector. It has a good brand image. It gives better service for customers.

Suppose to be very sophisticated. They have big gap between cubic capacities

of its products. Spare parts are too costly.

They should go in new segments of bikes. There is large no. of young consumers in the

market. Company has to focus on them.They have big opportunities in heavy bike

segments.As government policies are amended against

pollution in metro cities, Hero Honda being 4 stroke bike manufactures has great opportunities to explore its new innovations and technologies.

Main threats to Hero Honda are their competitors likeBajaj Auto Ltd.TVS motors Ltd.Yamaha Motors India.

Honda motorcycle and scooter India.The cost of the product is very high in

comparison to other companies.Decreasing market share.

Hero Honda Ambition 133,135Hero Honda CD DeluxHero Honda Splendor , Splendor+ , Super

Splendor, Splendor NXGHero Honda CBZ , CBZ XtremeHero Honda Passion , Passion+ , Passion ProHero Honda KarizmaHero Honda HunkHero Honda PleasureHero Honda Glamour

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HERO HONDA CD-DELUXE

“Naye Indian ki Nayi Deluxe Bike” HERO HONDA SPLENDOR PLUS

“Designed To Excel” HERO HONDA SPLENDOR NXG

“Bharosa Bhi Style Bhi” HERO HONDA PASSION PLUS

“Whole New World Of Style”

HERO HONDA SUPER SPLENDOR

“Generation Nayi Bharosa Wohi” HERO HONDA GLAMOUR

“Simply Magnetic” HERO HONDA ACHIE V ER

“SOLID, Like You!” HERO HONDA CBZ XTREME

“Live Of The Edge!”

HERO HONDA HUNK

“NO One Messes With It” HERO HONDA KARIZMA

“Jet Set Go. . .” HERO HONDA PLEASURE

“Karlo rock ‘n’ roll on the run

Why should boys have all the fun?” HERO HONDA CD-DAWN

“Public Ka Apna Transport”

HERO HONDA KARIZMA

HRITHIK ROSHAN

HERO HONDA GLAMMOUR

YUVARAJ SINGH

HERO HONDA PASSION

HRITHIK ROSHAN

HERO HONDA PLEASURE

PRIYANKA C HOPRA

KEY STRATEGIES

1. To build a strong product portfolio 2. Explore growth opportunities globally 3.Improve its operational efficiency continuously 4. Aggressively expand its reach to customers 5. Continue to invest in brand building activities 6. Ensure customer and shareholder delight.

To strengthen their network in rural areas , the company started sales, servicing and spare part outlets in small towns and villages across India.

TVSHONDABAJAJYAMAHA

http://www.bajajauto.com/index.htm

Comp

etitors

Strong Weak Close Distan

t

Good Bad Attack Avoid

Bajaj √ - √ - √ - √ -

TVS √ - √ - √ - √ -

Honda √ - - √ - - √ -

Yamaha - √

- √ - - - √

Total turnover (Net sales & Other Operating income) for Q3 stands at Rs2881.27 crore reflecting year on year growth of 4.77 per cent, while net profit after tax is Rs300.42 crore showing growth of 9.24 per cent.

Hero Honda, which holds 51 per cent market share in the domestic motorcycle market, It has crossed the landmark retail sales of more than 6 lakh two-wheelers in a month in October.

CompanyApr-Jun2008-09

MarketShare (%)

Hero Honda 877,089 51.26

Bajaj Auto 391,100 15.53

TVS Motors 292,530 14.78

Honda 226,068 13.33

Total Market 1,865,767 -

51.26%

15.53%

14.78%

13.33%

hero honda

bajaj

TVS

Honda

CHART SHOWING MARKET SHARE OF DIFFERENT COMPANIES

MARKETING MIX

PRODUCT PRICE PLACE PROMOTION

4P’S OF HERO HONDA

PRODUCTPRODUCT CD – Dawn, Splendor, CD – Dawn, Splendor, Passion, Glamour, CBZ, Passion, Glamour, CBZ, Karizma etc. Karizma etc.

Pricing Strategy Justification

Cost based pricing As Hero Honda is manufacturing concern it

involve many cost for different activities like

raw materials purchasing, manufacturing,

distribution etc,. so, to compensate all these

above cost the company is adopting cost

based pricing and it produces unit wise so

they can easily identify manufacturing cost

for each unit.

Value Based It takes care of its customers through Value

based competitive pricing and good service

after sales. The Company focuses on providing

"Value for Money" through its pricing strategies and

after sales services.

PLACE :PLACE :

All over INDIADistribution channel – Manufacturer Dealer Customer

PROMOTION:PROMOTION:T.V. Add.News paper Add.Magazine Add.FM Radio Hoardings etc.Excellent marketing, finance and loan services, an efficient

dealer network, tactical promotion comprising of fuel conservation campaigns, mobile workshops, safety driving courses and others, all placed Hero Honda in a league distinct from the conventional.

Need Recognition

Information Search

formation Search

Evaluation of Alternatives

Purchase Decision

Post Purchase behaviPost Purchase

behavior

or

The basic need of a vehicle is for transportation. Hero Honda Pleasure, it mainly degised for young girls & working or non-working women. They need this vehicle for transportation purpose. So, this is the need recognition for buying decision process.

Surprisingly, customers search for information. The major information sources to which customers will turn fall into four groups-

Personal - family, friends, neighbors.Commercial - advertisements, web sites,

salesperson, dealers, displays.Public - mass media, consumer-rating

organizations.Experimental - handling, examining, using

product

The customers search for alternative competitive brand information search. For example, the alternative search for Hero Honda Pleasure is its competitive brands like Honda Activa, TVS Pep+, Bajaj Wave. These are alternative search for this product.

In the evaluation stage, the consumer forms preferences among the brands in the choice set. The customer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumer may make up to five sub decisions: brand, dealer, quantity, timing and finally payment method. After all these the customer will go for purchasing the product (Hero Honda Pleasure).

After the purchase, the customer might experience positive about the product or negative. Post purchase satisfaction is a function and the product’s perceived performance. The performance falls short of expectations, the consumer is disappointed; if it meet expectations, the consumer is satisfied. After satisfying with the product the customer may go for influence to buy the same brand.

After studying about the Hero Honda’s company, we came to know about the companies SWOT, different brands and there features, market share, promotion activities, brand ambassadors, 4P’s of marketing, customers buying behavior and many more. Apart from this in this project we also came to know about the different competitors and their Strengths and Weakness. So, finally we conclude that the two wheeler industry is growing very fast in India and the different companies are coming with new different marketing strategies to sustain their brand in the market.

Thank Thank you!you!