Final Project Hero Moto Corp Bba

7/24/2019 Final Project Hero Moto Corp Bba

1/61

MINOR PROJECT REPORT

ON

MARKETING STRATEGIES OF

HERO MOTOCORP

Submitted in partial fulfillment of te re!uirement of

"a#elor$ of "u$ine$$ Admini$tration %""A&

"ATCH '""A()*+,()*+-

JIMS VASANT KUNJ

FAC./T0 G.I1E S."MITTE1 "0'

MS2 SI/K0 GA.R NA3PREET SINGH SACH1E3A

1ESIGNATION *45+,)*+-+,

""A IIIR1 SEM


2/61

CERTIFICATE

Roll no *45+,)*+-+, student of BBA of: Guru Gobind Singh Indraprastha

University Ne !e"hi# hereby de$"are that the pro%e$t report on &Mar6etin7 Strate7ie$

Of Hero Motor Corp2 ' is an origina" and authenti$ated or( done by )e*

I further de$"are that it has not been sub)itted e"sehere by any other person in any of the

institutes for the aard of any degree or dip"o)a*

%M$2 Sil68 Gaur&

Pro9e#t Guide

ACKNO:/E1GEMENTS


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A "ot of effort has gone into this training report* My than(s are due to )any peop"e ith

ho) I have been $"ose"y asso$iated*

I ou"d "i(e a"" those ho have $ontributed in $o)p"eting this pro%e$t* +irst of a""# I ou"d

"i(e to send )y sin$ere than(s to M$2 SI/K0 GA.Rfor her he"pfu" hand in the $o)p"etion

of )y pro%e$t*

I ou"d "i(e to than( )y entire be"oved fa)i"y , friends for providing )e )onetary as e""

as non - )onetary support# as and hen re.uired# ithout hi$h this pro%e$t ou"d not have

$o)p"eted on ti)e* Their trust and patien$e is no $o)ing out in for) of this thesis

/0NT1NTS


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S No Topi$ 2age No

3 Certifcate 4

4 Acknowledgements 55 Executive Summary6 /hapter73: Introdu$tion 8

8 /hapter74: Introdu$tion to /o)pany 39

9 /hapter75: esear$h Methodo"ogy 64

; /hapter76: !ata Ana"ysis and

2resentation < Study of Topi$

65

= Chapter-5: inding andConclusions

8>

? !e"erences#$i%liography 853> Appendices 7


5/61

CHAPTER +' CONCEPT.A/ 1ISC.SSION

Hero Honda Rebrandin7 to Hero Moto#orp

The year 4>3> )ar(ed the end of one of the or"d@s )ost su$$essfu" $orporate

)arriages - ero onda and a ne beginning for The Mun%a"s of the ero /y$"es

td* Ba$( in 3?=6# the to fir)s shared a $o))on be"ief that India ith its

burgeoning popu"ation# "o per $apita in$o)e and unorganiCed pub"i$ transport

syste)# ou"d be in need of fruga" )eans of persona" transportation* ero ith its

inherent (no"edge of se""ing produ$ts in India as the $ha)pion in Sa"es ,

Mar(eting and onda as the undisputed "eader in to hee"er te$hno"ogies

or"dide* After 49 years of sharing te$hno"ogy to )a(e the )ost e$ono)i$a" and

fue" effi$ient )otor$y$"es for the Indian $onsu)ers# onda Motors de$ided to )ove

out of the %oint venture* This divor$e enab"es the ero Group to eDport its

)otor$y$"es to other nations hi$h as not possib"e ear"ier and brings us to an

eD$iting birth of a ne brand - ero Moto/orp*


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The or"d@s "argest )anufa$turer of to7hee"ers by vo"u)e sa"es for nine

$onse$utive years sin$e 4>>3and one of The +orbes 4>> Most espe$ted /o)panies

in the or"d - ero onda has $o)e a "ong ay* Eith a )assive 8 )i""ion strong

$onsu)er base and )ore than 4> )i""ion to7hee"ers on Indian roads# ero onda

tru"y be$a)e !esh Ki !had(an ith !ha(!ha( i)age tou$hing the hearts and strings

of everyone a$ross the nation* ebranding this big a brand ou"d be a )a))oth tas(

in order to )ove out of the )ou"d of ero onda and ride into neer and different

horiCons* The ero Group roped in ondon7based Eo"ff 0"ins 7a g"oba" brand and

innovation spe$ia"ist# to or( on its ne identity in$"uding the brand ar$hite$ture#

brand na)e# brand "ogo and brand positioning ith an under"ying the)e of /reation#

enea" and e7energiCing the brand* The entire re7branding eDer$ise ou"d invo"ve

a gradua" shrin(age of brand onda and p"a$e Brand Fero@ on a"" its produ$ts by

4>36*

The ne "ogo shos the "etter F@ in $apita" ith a $"ear hite ba$(ground a"ong ith

Fero@ ritten beneath in ed* The b"a$( $o"or in the "ogo stands for so"idity and

pre)iu)ness hi"e the ed gives a fee"ing of energy# passion# and $onfiden$e* Torepresent Fero@ in 5!# the "ogo even has a triang"e# trapeCoid and a para""e"ogra) in

the first "etter of its na)e* The sharp edges depi$t sty"e# engineering and innovation*

The ne "ogo is designed to re"ate to the youth and their $an do spirit*


7/61

The $o)pany has ro""ed out a ne anthe)Fu) Mein ai 10@ HThere@s a Einner

in A"" of us# $o)posed by A* ah)an ith the $a)paign "aun$h on 38th August to

$apture the )aDi)u) eyeba""s and as re$eived ith a "ot of eD$ite)ent and app"ause

by the )asses that $ou"d $onne$t the 107is) of the brand ith their dai"y

$ha""enges and a true inning spirit* I agree ith Mr* 2aan Mun%a"# the /10 of ero

Moto/orp# ho eDp"ains this $a)paign as a true sense of Indian /atapu"t hi$h

signa"s that a"though its roots are very Indian# it is ready for g"oba" eDpansion*

I "i(e the ay the ero Group has re7positioned itse"f for the e)erging Brand India*

But the rea" test begins for the Mun%a"s ho i"" no have to "oo( at bui"ding very

$ru$ia" ,! fa$i"ities re.uired to operate in a tough )ar(et "i(e India* As a $onsu)er#

I@ve a"ays fe"t that the rea" ero in the ne7age ero onda bi(es as the onda

engineviC* /B# un( and KariC)a* ero Moto/orp needs to )a(e its $onsu)ers

aare of the te$hno"ogy advan$e)ents and progress they )a(e in their )otor$y$"es to

)aintain their "eadership position in the )ar(et* Eith p"ayers "i(e Ba%a%# TVS and

onda ro""ing out eD$iting )ode"s every year# e %ust need to ait and at$h if the

ne 10 be$o)es India Ki Nayi !had(an or not*

Te "rand Journe8 of Hero


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Te Tran$ition to Re$pon$ible Corporate Re$tru#turin7'

As deve"oping )ar(ets refor) their syste)s of $orporate estru$turing# they )ust

ta(e into a$$ount severa" fa$tors $o)p"i$ating the pro$ess* 0ne nuan$e is the

di$hoto)y of $orporate estru$turing and po"iti$a" estru$turing# eDe)p"ified by

state7oned enterprises* These pub"i$"y7oned businesses are run ith $ertain

$hara$teristi$s of the private se$tor )ode"# but po"iti$a" inf"uen$e is eDpe$ted# and

often un$onstru$tive* State7oned enterprises are usua""y stru$tured to de"iver a

produ$t or servi$e to so$iety# a $o))it)ent that is i""ustrated by board $ondu$t*

!uring privatiCation there is an inter)ediate step of $orporatiCation that $an ea(en a

state7oned enterprise* The best ay to prepare for the privatiCation pro$ess is by

i)p"e)enting sound $orporate estru$turing pra$ti$es before the pro$ess begins* In

deve"oped )ar(ets# privatiCed fir)s $an survive far better than in e)erging )ar(ets#

here privatiCed $o)panies in distress i"" "i(e"y f"ounder* /orporate estru$turing

$odes )ust a"so be adaptab"e to the business environ)ent here they or(* +or

eDa)p"e# $odes have been adapted to fit the dyna)i$s of fa)i"y7oned fir)s so that

in e)erging e$ono)ies# here fa)i"y7oned fir)s are "i(e"y to be in their first or


9/61

se$ond generation# fa)i"ies (no best ho to adapt standards of estru$turing to

a$$o))odate the fa$t that a"" the fir)@s a$tors are re"ated* In Afri$a# so$iety tends to

see fir)s as having a greater ro"e ithin the $o))unity than )ere"y the produ$tion of

profits for shareho"ders# $reating tension and sensitivity around the issue of $orporate

$itiCenship and "eaving the deve"op)ent of $orporate estru$turing at a standsti""*

Current Trend$ and Future Con$ideration$'

Ehi"e deve"oped )ar(ets $u"tivate )ore sophisti$ated syste)s of estru$turing#

e)erging )ar(et "eaders fo$us )ere"y on i)proving $urrent syste)s* There is

$on$ern that auditing fir)s Hand their $o)prising )ergers and $orporate $o""apses in

deve"oped )ar(ets have negative"y affe$ted e)erging )ar(ets* !ebates over U*S* and

British syste)s of estru$turing a"so i)pa$t regu"ation design in e)erging )ar(ets*

ate"y# there has a"so been interest in )oving ba$( to state7oned enterprises

i)p"e)enting $orporate estru$turing# reprising the issue of po"iti$a" estru$turing*

Another $onsideration $on$erns interested investors - are they )ore a$tive at ho)e or

in e)erging )ar(ets And do they eDhibit $onsisten$y in their behavior in both

"o$ations As institutions in$reasing"y invest around the or"d# $ross7border voting

issues be$o)e )ore i)portant as "eaders ait to see hi$h internationa" regu"atory

syste)s i"" survive* /onfiden$e and $onsisten$y in i)p"e)enting po"i$ies of

$orporate estru$turing shou"d triu)ph at any "eve"* The pub"i$ and private se$tors

)ust or( together to ensure that po"i$ies are non7negotiab"e# trustorthy#

strea)"ined# and effe$tive pro$esses and that $orporate estru$turing $reates a

$onstru$tive environ)ent for invest)ent and groth*Birla Committee

re$o))endations in 4>>># theNaresh Chandra )ay e"" be vieed as a )i"estone in

the evo"ution of $orporate estru$turing pra$ti$es in India* It is si)i"ar in spirit and in

s$ope to the Sarbanes-Oxley )easures in the United States* The re.uire)ents of

/"ause 6? ere app"ied in the first instan$e to the $o)panies in the BS1 4>> and S,2

/,L NI+T sto$( indi$es# and a"" ne"y "isted $o)panies# on Mar$h 53# 4>>3* These

ru"es ere app"ied to $o)panies ith a paid up $apita" of IN 3>> )i""ion H O4*8

)i""ion or ith a net orth of IN 48> )i""ion H O9*5 )i""ion at any ti)e in the

past five years on Mar$h 53# 4>>4# and to other "isted $o)panies ith a paid up

$apita" of over IN 5> )i""ion H O>*;8 )i""ion on Mar$h 53# 4>>5* TheNarayana


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Murthy Committee or(ed on further refining the ru"es# and /"ause 6? as a)ended

a$$ording"y in 4>>6* The (ey )andatory features of /"ause 6? regu"ations dea" ith

the fo""oing: Hi $o)position of the board of dire$torsP Hii the $o)position and

fun$tioning of the audit $o))itteeP Hiii estru$turing and dis$"osures regarding

subsidiary $o)paniesP Hiv dis$"osures by the $o)panyP Hvi /10


11/61

Manage)ent !is$ussion and Ana"ysis se$tion in the annua" report dis$ussing genera"

business $onditions and out"oo(P and Hvii ba$(ground and $o))ittee )e)berships of

ne dire$tors as e"" as presentations to ana"ysts* In addition# a board $o))ittee ith

a non7eDe$utive $hair is re.uired to address shareho"der


12/61

%u)p in a to7day Hfive7day event7indo beginning ith the announ$e)ent day

$o)pared to

PRO1.CTS /INE OF HERO MOTOCORP

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http://www.heromotocorp.com/en-in/the-bike/karizma-zmr-44.html%20%5C%20Karizma%20ZMRhttp://www.heromotocorp.com/en-in/the-bike/xtreme-64.html%20%5C%20Xtremehttp://www.heromotocorp.com/en-in/the-bike/glamour-programmed-fi-62.html%20%5C%20Glamour%20Programmed%20FIhttp://www.heromotocorp.com/en-in/the-bike/maestro-49.html%20%5C%20Maestrohttp://www.heromotocorp.com/en-in/the-bike/pleasure-53.html%20%5C%20Pleasurehttp://www.heromotocorp.com/en-in/the-bike/passion-xpro-47.html%20%5C%20Passion%20XPROhttp://www.heromotocorp.com/en-in/the-bike/splendor-ismart-69.html%20%5C%20Splendor%20iSmarthttp://www.heromotocorp.com/en-in/the-bike/splendor-pro-classic-73.html%20%5C%20Splendor%20PRO%20Classichttp://www.heromotocorp.com/en-in/the-bike/xtreme-64.html%20%5C%20Xtremehttp://www.heromotocorp.com/en-in/the-bike/glamour-programmed-fi-62.html%20%5C%20Glamour%20Programmed%20FIhttp://www.heromotocorp.com/en-in/the-bike/maestro-49.html%20%5C%20Maestrohttp://www.heromotocorp.com/en-in/the-bike/pleasure-53.html%20%5C%20Pleasurehttp://www.heromotocorp.com/en-in/the-bike/passion-xpro-47.html%20%5C%20Passion%20XPROhttp://www.heromotocorp.com/en-in/the-bike/splendor-ismart-69.html%20%5C%20Splendor%20iSmarthttp://www.heromotocorp.com/en-in/the-bike/splendor-pro-classic-73.html%20%5C%20Splendor%20PRO%20Classichttp://www.heromotocorp.com/en-in/the-bike/karizma-zmr-44.html%20%5C%20Karizma%20ZMR


13/61

S21N!0

+ !1UL1 1/0

+ !1UL1

Produ#t mi; of Hero Moto#orp

A$$ording to 2hi"ip Kot"er &2rodu$t )iD Ha"so $a""ed as produ$t assort)ent is the set

of a"" produ$ts and ite)s a parti$u"ar se""er offers for sa"e'* 2rodu$t )iD pertains to

the variety of produ$ts a $o)pany se""s* There are four di)ensions to produ$t )iD#

na)e"y# idth# "ength# depth and $onsisten$y*

Eidth: The idth of the produ$t )iD $onsists of a"" the produ$t "ines that the $o)pany

has to offer to its $usto)ers* If e ta(e 2,G for eDa)p"e# the idth of the produ$t

"ine ou"d $onsist of air 2rodu$ts# 0ra" $are# Soaps and !etergents# Baby /are#

2ersona" /are and o)e $are*

ength: ength of the produ$t )iD in$"udes the tota" nu)ber of produ$ts offered to

the $usto)ers* The nu)ber of produ$ts provided by 2,G is 39 hi$h is the tota"

"ength of its produ$t )iD*

!epth: !epth of a produ$t )iD pertains to the nu)ber of variants that are offered in

ea$h produ$t in the "ine* If e ta(e the eDa)p"e of Arie" e $an see that it is avai"ab"e

in a "ot of siCes H3>> GM# 48> GM# 3 KG et$* and different types of "i(e - +ront 0

Mati$ and +ragran$es et$*

/onsisten$y: /onsisten$y of a produ$t )iD refers to the re"ationship of a various

produ$t "ines in ter)s of end use# produ$t re.uire)ents# distribution $hanne"s# orso)e other ay* 2,G@s produ$t "ines are a"" $onsistent be$ause they on"y $on$entrate

on se""ing +M/G produ$ts*

Produ#t /ine' %/en7t and :idt&'
http://www.heromotocorp.com/en-in/the-bike/hf-deluxe-eco-70.html%20%5C%20HF%20Deluxe%20Ecohttp://www.heromotocorp.com/en-in/the-bike/hf-deluxe-eco-70.html%20%5C%20HF%20Deluxe%20Eco


14/61


15/61

Ehere#

No of ite)s H"ength: 3?

No of "ines Hidth: >3

No of ite)s Hdepth: >?


16/61

CHAPTER )' INTRO1.CTION

)2+2 O33734P even as the s$ooters seg)ent $ontinued to post 4>Q

Ho eDpansion* 0vera""# I/A eDpe$ts the do)esti$ 4E industry to report a vo"u)e

groth of 35Q in 4>35736as e eDpe$t groth to fade further in 6# 4>337344 due

to base effe$t*

In an environ)ent here the northard )ove)ent of inf"ation# fue" pri$es and

interest rates has been the ne)esis of the Indian auto)obi"e industry at "arge# the 4E

industry has been the )ost resi"ient ref"e$ted in its hea"thy vo"u)e groth of 38*>Q

Ho in ?)# 4>33734* The groth has been supported by various stru$tura" positives

asso$iated ith the do)esti$ 4E industry in$"uding favourab"e de)ographi$ profi"e#

)oderate 4E penetration "eve"s Hin re"ation to severa" other e)erging )ar(ets# under

deve"oped pub"i$ transport syste)# groing urbaniCation and eDpe$ted strong

rep"a$e)ent de)and# besides )oderate share of finan$ed pur$hases* I/A eDpe$ts

these strengths# $oup"ed ith the 01Ms@ thrust on eDports# to aid the 4E industry to

report a vo"u)e /AG of 3>734Q over the )ediu) ter) to rea$h a siCe of 43745

)i""ion units Hdo)esti$ eDports by 4>38739*


17/61

Trend in Sale$ 3olume$ of te Indian ): Indu$tr8

A"though the o vo"u)e groth of the industry re)ained in doub"e digits# the pa$e

of groth during the "ast .uarter as at its "oest gear in the "ast three years* In an

environ)ent here the in$rease in inf"ation# fue" pri$es and interest rates has been the

ar$hene)y of groth in the Indian auto)obi"e industry at "arge# the 4E industry has

been the )ost tough and as ref"e$ted in its vigorous vo"u)e groth*

A loo6 on te


18/61

Mar6et Sare Trend$

The Indian )otor$y$"es seg)ent $ontinues to be do)inated by ero Moto/orp hi$h

has )aintained its )ar(et share at over 88Q in the do)esti$ )otor$y$"es seg)ent

over the "ast five .uarters* The top three p"ayers a$$ounted for =?*8Q of the industry@s

vo"u)es in 5# 4>35736H?4*>Q in 4>>;7>=# ith onda Motor$y$"es re$"ai)ing its

spot as the third "argest p"ayer# a position hi$h it had "ost out to TVS in the previous

.uarter after having retained it sin$e 6# 4>>?73>* In the ;87348$$ seg)ent of

)otor$y$"es Hthat represented ;3Q of tota" )otor$y$"es sa"es vo"u)es in ?)# 4>337

34# ero Moto/orp $ontinues to be a strong )ar(et "eader ith a share of ;6*4Q in

?)# 4>35736H;>*6Q in ?)# 4>3>733* In the 348$$ seg)ent of )otor$y$"es# hi"e

Ba%a% Auto $ontinues to a$$ount for near"y ha"f the seg)ent@s vo"u)es H6?*3Q in ?)#

4>33734# a)aha has been the fastest groing having i)proved its )ar(et share

fro) =*3Q in ?)# 4>3>733 to 3>*3Q in ?)# 4>33734*


19/61

Trend in Mar6et Sare in Motor#8#le$ Se7ment %1ome$ti#&

Sale$ 3olume$ Anal8$i$ ( S#ooter$

Barring 3# 4>33734# the groth in s$ooter seg)ent@s sa"es vo"u)es has genera""y

outperfor)ed that of the )otor$y$"es seg)ent# part"y due to the for)er@s s)a""er

base* In 5# 4>35736too# the sa"es vo"u)es of the do)esti$ s$ooters seg)ent at

99>#>>> units re$orded a groth of 43*9Q Ho# higher than the ?*4Q groth in

)otor$y$"e sa"es* Eith this# the share of the s$ooters seg)ent in the tota" do)esti$

to7hee"er vo"u)es in$reased to 3?*6Q in 5# 4>35736fro) 3;*9Q in 4>3>733*


20/61

Trend in >uarterl8 Sale$ 3olume$ of S#ooter$ %1ome$ti#&


21/61

Trend in Mar6et Sare in S#ooter$ Se7ment %1ome$ti#&


22/61

3i$ion? Mi$$ion? Goal$? Ob9e#ti


23/61

.ua"ity of "ife and its business asso$iates Hsupp"iers , distributors ith a tota" sense

of be"onging# thus strengthening the bond that is a"ready deep7rooted*

3alue$

espe$t for u)an Beings*

Is a responsive organiCation

Is a boundary "ess organiCation

Is striving for eD$e""en$e*

2rovide fear"ess# en%oyab"e or(ing environ)ent*

Is se"f7re"iant*

2roviding "earning environ)ent*

Is a $aring organiCation

1nab"es re"ationship bui"dings* 2ro)pts transparen$y , trust*

Is $reativity pro)oting*

Is perfor)an$e oriented

Produ#t' (

The )ain strategy of this $o)pany I produ$t is to provide a sty"ish# durab"e bi(es

hi$h $an easi"y fit to Indian peop"es and easi"y $an ab"e to run in parti$u"ar Indian

road*

Pri#e' (

ero Moto $orp is a $o)pany that provides the ne te$hno"ogy produ$t in Indian

)ar(et in very "ess pri$e* There are )any produ$ts "i(e sp"endor# passion that it@s ere

very "ess $o)paring to that seg)ents bi(es in )ar(et* This $o)pany bits its

$o)petitor ith re"ated to pri$e*


24/61

Pla#e' (

ero Moto $orp@s servi$e $enters and shoroo)s are avai"ab"e in a"" parts of the any

$ity so that the $onsu)ers as $an easi"y go to nearest servi$e $enter and shoroo)s*

!ue to this strategy the sa"es of hero bi(es are a"so in$rease*

Promotion'(

The pro)otion of ero Moto $orp is very uni.ue in past hen the ero and onda

$o)panies e partners* The use the senten$e "i(es &ero desh (i dhad(an'* The

$o)pany a"so has big na)es in brand pro)oters*


25/61

)2) Profile of te Or7aniation

ero Moto/orp td* H+or)er"y ero onda Motors td* is the or"ds

"argest manufa#turer of t=o ( =eeler$# based in India* In 4>>3# the $o)pany

a$hieved the $oveted position of being the "argest t=o(=eeler manufa#turin7

#ompan8in India and a"so# the Eor"d No*3 t=o(=eeler #ompan8in ter)s of unit

vo"u)e sa"es in a $a"endar year* ero Moto/orp td* $ontinues to )aintain this

position ti"" date*

3i$ion

The story of ero onda began ith a si)p"e vision 7 the vision of a )obi"e and an

e)poered India# poered by its bi(es* ero Moto/orp td*# $o)panys ne

identity# ref"e$ts its $o))it)ent toards providing or"d $"ass )obi"ity so"utions

ith reneed fo$us on eDpanding $o)panys footprint in the g"oba" arena*

Mi$$ion

ero Moto/orps )ission is to be$o)e a g"oba" enterprise fu"fi""ing its $usto)ers

needs and aspirations for )obi"ity# setting ben$h)ar(s in te$hno"ogy# sty"ing and

.ua"ity so that it $onverts its $usto)ers into its brand advo$ates* The $o)pany i""

provide an engaging environ)ent for its peop"e to perfor) to their true potentia"* It

i"" $ontinue its fo$us on va"ue $reation and enduring re"ationships ith its partners*

Strate78

ero Moto/orps (ey strategies are to bui"d a robust produ$t portfo"io a$ross

$ategories# eDp"ore groth opportunities g"oba""y# $ontinuous"y i)prove its

operationa" effi$ien$y# aggressive"y eDpand its rea$h to $usto)ers# $ontinue to invest


26/61

in brand bui"ding a$tivities and ensure $usto)er and shareho"der de"ight*

Manufa#turin7

ero Moto/orp to hee"ers are )anufa$tured a$ross three g"oba""y ben$h)ar(ed)anufa$turing fa$i"ities* To of these are based at Gurgaon and !haruhera hi$h are

"o$ated in the state of aryana in northern India* The third and the "atest

)anufa$turing p"ant is based at aridar# in the hi"" state of Uttra(hand*

Te#nolo78

In the 3?=>s the /o)pany pioneered the introdu$tion of fue"7effi$ient# environ)ent

friend"y four7stro(e)otor$y$"esin the $ountry* It be$a)e the first $o)pany to "aun$hthe +ue" In%e$tion H+I te$hno"ogy in Indian )otor$y$"es# ith the "aun$h of

theG"a)our +I in June 4>>9*

Its p"ants use or"d $"ass e.uip)ent and pro$esses and have be$o)e a ben$h)ar( in

"eanness and produ$tivity*

ero Moto/orp# in its endeavor to re)ain a pioneer in te$hno"ogy# i"" $ontinue to

innovate and deve"op $utting edge produ$ts and pro$esses

Produ#t$

ero Moto/orp offers ide range of to hee"er produ$ts that

in$"ude )otor$y$"es and s$ooters# and has set the industry standards a$ross a"" the

)ar(et seg)ents*
http://heromotocorp.com/http://heromotocorp.com/http://heromotocorp.com/http://heromotocorp.com/http://heromotocorp.com/


27/61

1i$tribution

The /o)panys groth in thet=o =eeler mar6et in India is the resu"t of an

intrinsi$ abi"ity to in$rease rea$h in ne geographies and groth )ar(ets* ero

Moto/orps eDtensive sa"es and servi$e netor( no spans over to 8>>> $usto)er


28/61

tou$h points* These $o)prise a )iD of authoriCed dea"erships# servi$e , spare parts

out"ets# and dea"er7appointed out"ets a$ross the $ountry*

"rand

The ne ero is rising and is poised to shine on the g"oba" arena* /o)panys ne

identity Wero Moto/orp td*W is tru"y ref"e$tive of its vision to strengthen fo$us on

)obi"ity and te$hno"ogy and $reating g"oba" footprint* Bui"ding and pro)oting ne

brand identity i"" be $entra" to a"" its initiatives# uti"iCing every opportunity and

"everaging its strong presen$e a$ross sports# entertain)ent and ground7 "eve"

a$tivation*

)*+*(++ Performan#e

Tota" unit sa"es of 86#>4#666 to7hee"ers# groth of 3;*66 per $ent

Tota" net operating in$o)e of IN 3?6>3*38 /rores# groth of 44*54 per $ent

Net profit after taD at IN 3?4;*?> /rores

Tota" dividend of 848>Q or IN 3>8 per share in$"uding Interin !ividend of IN ;>

per share on fa$e va"ue of ea$h share of IN 4 ea$h

1BI!TA )argin for the year 35*6? per $ent

12S of IN ?9*86

Mile$tone$

+B5

Joint /o""aboration Agree)ent ith onda Motor /o* td* Japan signed

Shareho"ders Agree)ent signed

+B,

ero onda Motors td* in$orporated

+B4

+irst )otor$y$"e W/! 3>>W ro""ed out


29/61

+B-

3>>#>>>th )otor$y$"e produ$ed

+BB

Ne )otor$y$"e )ode" 7 WS"ee(W introdu$ed

+BB+

Ne )otor$y$"e )ode" 7 W/! 3>> SSW introdu$ed

8>>#>>>th )otor$y$"e produ$ed

+BB)

a)an Mun%a" Vidya Mandir inaugurated 7 A S$hoo" in the )e)ory of founder

Managing !ire$tor# Mr* a)an Kant Mun%a"

+BB,

Ne )otor$y$"e )ode" 7 WSp"endorW introdu$ed

3#>>>#>>>th )otor$y$"e produ$ed

+BB-

Ne )otor$y$"e )ode" 7 WStreetW introdu$ed

ero ondas 4nd )anufa$turing p"ant at Gurgaon inaugurated

+BB


+BBB

Ne )otor$y$"e )ode" 7 W/BW introdu$ed

1nviron)ent Manage)ent Syste) of !haruhera 2"ant $ertified ith IS0736>>3 by

!NV o""and

a)an Mun%a" Me)oria" ospita" inaugurated 7 A ospita" in the )e)ory of founder


30/61

Managing !ire$tor# Mr* a)an Kant Mun%a"

)***

6#>>>#>>>th )otor$y$"e produ$ed1nviron)ent Manage)ent Syste) of Gurgaon 2"ant $ertified IS0736>>3 by !NV

o""and

Sp"endor de$"ared Eor"d No* 3 7 "argest se""ing sing"e to7hee"er )ode"

Wero onda 2assport 2rogra))eW 7 /M 2rogra))e "aun$hed

)**+

Ne )otor$y$"e )ode" 7 W2assionW introdu$ed0ne )i""ion produ$tion in one sing"e year

Ne )otor$y$"e )ode" 7 WJoyW introdu$ed


)**)

Ne )otor$y$"e )ode" 7 W!anW introdu$ed

Ne )otor$y$"e )ode" 7 WA)bitionW introdu$edAppointed Virender Sehag# Moha))ad Kaif# uvra% Singh# arbha%an Singh and

aheer Khan as Brand A)bassadors

)**5

Be$o)es the first Indian /o)pany to $ross the $u)u"ative ; )i""ion sa"es )ar(

Sp"endor has e)erged as the Eor"ds "argest se""ing )ode" for the third $a"endar year

in a ro H4>>># 4>>3# 4>>4Ne )otor$y$"e )ode" 7 W/! !anW introdu$ed

Ne )otor$y$"e )ode" 7 WSp"endor W introdu$ed

Ne )otor$y$"e )ode" 7 W2assion 2"usW introdu$ed

Ne )otor$y$"e )ode" 7 WKariC)aW introdu$ed

)**,


31/61

Ne )otor$y$"e )ode" 7 WA)bition 358W introdu$ed

ero onda be$a)e the Eor"d No* 3 /o)pany for the third $onse$utive year*

/rossed sa"es of over 4 )i""ion units in a sing"e year# a g"oba" re$ord*

Sp"endor 7 Eor"ds "argest se""ing )otor$y$"e $rossed the 8 )i""ion )ar(

Ne )otor$y$"e )ode" 7 W/BXW introdu$ed

Joint Te$hni$a" Agree)ent reneed

Tota" sa"es $rossed a re$ord of 3> )i""ion )otor$y$"es

)**4

ero onda is the Eor"d No* 3 for the 6th year in a ro

Ne )otor$y$"e )ode" 7 WSuper Sp"endorW introdu$ed

Ne )otor$y$"e )ode" 7 W/! !e"uDeW introdu$ed

Ne )otor$y$"e )ode" 7 WG"a)ourW introdu$ed

Ne )otor$y$"e )ode" 7 WA$hieverW introdu$ed

+irst S$ooter )ode" fro) ero onda 7 W2"easureW introdu$ed

)**D


38 )i""ion produ$tion )i"estone a$hieved

)**-


Ne Sp"endor NLG "aun$hed

Ne /! !e"uDe "aun$hed

Ne 2assion 2"us "aun$hed

Ne )otor$y$"e )ode" un( "aun$hed

4> )i""ion produ$tion )i"estone a$hieved

)**

ero onda aridar 2"ant inauguration

Ne 2"easure "aun$hed


32/61

Sp"endor NLG "au$hed ith poer start feature

Ne )otor$y$"e )ode" 2assion 2ro "aun$hed

Ne /B Ltre)e "aun$hed

48 )i""ion produ$tion )i"estone a$hieved

/! !e"uDe "au$hed ith poer start feature

Ne G"a)our "aun$hed

Ne G"a)our +i "aun$hed


33/61

)**B

ero onda Goodife 2rogra) "aun$hed un( Hi)ited 1dition "aun$hed

Sp"endor $o)p"eted 33 )i""ion produ$tion "and)ar(

Ne )otor$y$"e )ode" KariC)a 7 M "aun$hed

Si"ver %ubi"ee $e"ebrations

)*+*

Ne )ode" Sp"endor 2ro "aun$hed

aun$h of ne Super Sp"endor and Ne un(

)*++

Ne "i$ensing arrange)ent signed beteen ero and onda Hero onda is rena)ed

as ero

aun$h of ne refreshed versions of G"a)our# G"a)our +i# /B Ltre)e# KariC)a

/rosses the "and)ar( figure of 8 )i""ion $u)u"ative sa"es in a sing"e year

)25 Problem$ of te Or7aniation

ero Moto/orps perfor)an$e in the three )onths to the June .uarter $o)es as a

breather for the troub"ed auto)obi"e industry as the )a(er of to7hee"ers )anaged

to stay on $ourse despite "oer sa"es vo"u)es*

Are$ent pri$e in$rease toards the end of Apri" 4>35# ranging fro) s8>>73#8>> per

vehi$"e# so)ehat $o)pensated for the 8Q "oer sa"es vo"u)es year 7on7 year as

ero Moto/orp sa a )argina" 36> basis point dip in its top "ine in June 4>35 .uarter

over a year ago

But# an adverse produ$t )iD hi$h sa the $o)pany se""ing a higher nu)ber of 348

$$ and 3>> $$ bi(es but "oer vo"u)es of the pre)iu) 38> $$ )otor$y$"es i)pa$ted

the $o)panys average net rea"isation per vehi$"e# even after ad%usting for a higher

pri$e*

eros net rea"isation per vehi$"e dropped to s5?#4?5 $o)pared to s5?#;8= in the


34/61

Mar$h 4>35 .uarter* But than(s to soft $o))odity pri$es# the $o)pany $ou"d

)aintain its earnings before interest# taD and depre$iation or 1BI!TA )argins at

36*?Q for the .uarter R a tad "oer $o)pared to 38*3Q reported by the $o)pany in

June 4>34 .uarter*

Ehi"e the $o)pany has )anaged to sai" through on the operationa" front# profits ere

"oer by 33Q year7 on 7year as the $o)pany eDhausted its five7year 3>>Q taD ho"iday

on profits fro) its aridar p"ant hi$h a$$ounts for $"ose to 58Q of the $o)panys

tota" vo"u)es*

Starting this year# for the neDt five years# on"y 5>Q of the profits earned fro) the

aridar p"ant i"" en%oy taD $on$essions# i)p"ying that its taD "iabi"ity i"" no be

higher at over 48Q against the effe$tive taD rate of 39 7 3;Q paid by the $o)pany

unti" +35*

+or the .uarter# the taD "iabi"ity at 49*?Q as re"ative"y higher# hi$h the

)anage)ent has a"so attributed to the 8Q rise in sur$harge on $orporate taD in the

4>35 budget*

The rather $o)fortab"e sai"ing in the first .uarter of this fis$a" has not been ithout

$ha""enges for ero Moto/orp# given the fa$t that the $o)pany has been under severe

pressure be$ause of the e$ono)i$ s"odon and rising $o)petition in the to7


35/61

hee"er industry*

The $o)pany )ay# hoever# benefit fro) the eDpe$ted upti$( in the rura" e$ono)y 7

ith good )onsoons so far* But it i"" have to re$(on ith intense $o)petition fro)

peers*

The $o)panys )anage)ent# in a $onferen$e $a"" ith ana"ysts after the resu"ts# said

that "aun$h p"ans ere underay for the festive season* But )ost of these are "i(e"y to

be re"aun$h of eDisting )ode"s ith ne "aun$hes restri$ted to %ust a $oup"e* This

$o)es at a ti)e hen Ba%a% Auto# has a"ready announ$ed siD ne "aun$hes under its

!is$over brand this year on $o)p"ete"y ne p"atfor)s*

Going by the re$ent trend# buyers of to7hee"ers no give greater preferen$e to ne

"aun$hes rather than refurbishing eDisting )ode"s*

A"so ith rising $o)petition for a share in the 3>>$$ seg)ent of )otor$y$"es though

ne "aun$hes p"anned in +36 R both by Ba%a% Auto and onda Motor$y$"es ,

S$ooters R a"" ai)ed at boosting )ar(et share in the 3>>733> $$ seg)ent here ero

Moto/orp is the )ar(et "eader but is gradua""y "osing )ar(et share# the going i"" be

)ore $ha""enging for the $o)pany in the )onths ahead*

)2, Competition Information

Ehi"e a s"oing in sa"es vo"u)es has ta(en the shine off ero Moto/orp@s Hero

sto$(# don four per $ent in Apri" against a one per $ent fa"" in the SenseD# the

eDpe$ted rise in $o)petitive pressures over the $o)ing )onths and s"oing industry

vo"u)es have raised $on$erns over its )ediu)7 to "ong7ter) out"oo(*

A drop in $rop rea"isations and "oer to7hee"er sa"es has trans"ated to a )ere 4*6

per $ent year7on7year groth for ero in the )onth of Mar$h* Given the high base# it

is "i(e"y to a$hieve eight to 34 per $ent groth in vo"u)es in 4>34735# esti)ate

ana"ysts# $o)pared to 38*6 per $ent in 4>33734*

The (ey threat for ero is the "aun$h of onda Motor$y$"e and S$ooter India@s

Honda !rea) uga# hi$h /itigroup G"oba" Mar(ets ana"ysts Ja)shed !adabhoy


36/61

and Arvind Shar)a be"ieve has the potentia" to destabi"ise )ar(et share in the

eDe$utive seg)ent*

+urther# a s"oing in the do)esti$ seg)ent i"" hurt ero )ore than Ba%a% Auto# as

the "atter gets about 59 per $ent of its vo"u)es fro) eDports* The areas of opportunity

for ero i"" be eDports# the fast groing s$ooter )ar(et and the pre)iu) )otor$y$"e

seg)ent*

At s 3#?;5# the sto$( is trading at 38 ti)es its +35 esti)ates* Given $o)petitive

pressures at ho)e and untried eDport )ar(ets# )ost ana"ysts have a se""$$ !rea) uga# TVS is a"so eDpe$ted to re7"aun$h its

popu"ar bi(e# Vi$tor# in a ne avatar* Ba%a%# too# is eDpe$ted to "aun$h a bi(e in this

seg)ent*

The Street i"" be (een"y )onitoring the batt"e beteen onda and ero# given that

the eDe$utive seg)ent a$$ounts for about to7thirds of overa"" )otor$y$"e sa"es# and

that onda as unti" re$ent"y ero@s partner Hfor 49 years# ith e.ua""y good

understanding of the Indian )ar(et*

ero $urrent"y do)inates the eDe$utive seg)ent# ith ;6 per $ent )ar(et share* !ue

to an esti)ated s"oing in the se$tor# /iti has $ut vo"u)e fore$asts for ero and

anti$ipates s"ight erosion in its )ar(et share# parti$u"ar"y in the eDe$utive seg)ent*

The batt"e in the seg)ent# hoever# i"" be p"ayed out over a "ong ter)# ith ero

un"i(e"y to yie"d )u$h in the short ter)# be"ieve eDperts*

Says the head of resear$h at a "eading bro(erage fir)# &Though ero Moto/orp i""

shed so)e )ar(et share# the gains for $o)petition in the short ter) i"" be )argina"#

as ero sti"" has enough brand pu"" and distribution rea$h*' As a $o)parison# hi"e

ero has a 6#>>>7dea"er netor(# onda@s is %ust a fourth of this* This i"" be diffi$u"t

to rep"i$ate any ti)e soon*


37/61

If the onda bi(e is su$$essfu"# it $ou"d generate sa"es vo"u)es of 8>>#>>>7;8>#>>>

units annua""y*


38/61

)24 S:OT Anal8$i$ of te Or7aniation

Stren7t

3 Abi"ity to understand $usto)er@s needs and ants*

4 e$ogniCed and estab"ished brand na)e*

5 1ffe$tive advertising $apabi"ity*

6 It@s after sa"es servi$e

8 Maintenan$e $ost is "o

9 esa"e va"ue is high

; /o)pany@s na)e is synony)ous ith fue" effi$ient bi(es and $onne$tivity*

= uge brand e.uity and one of the biggest p"ayers in the to hee"ers Indian

)ar(et

? uge variety of produ$ts in every seg)ent

3> 1D$e""ent distribution# over 8>>> dea"erships and servi$e $enters

33 Good advertising and eD$e""ent rebranding fro) ero onda to ero Moto

/orp

:ea6ne$$

3 Mar(et share in pre)iu) seg)ent is "o*

4 2eop"e are $on$erned after brand )igration regarding te$hno"ogy*

5 Spare parts avai"abi"ity issues*

Opportunitie$

3 G"oba" eDpansion in $ountries of Afri$a and South A)eri$a*

4 1Dpansion of target )ar(et Hin$"ude o)en# )a"e s$ooter and trans road

bi(e*


39/61

5 S$ooter )ar(et is in$reasing thus they $an be India@s "eader in s$ooter )ar(et*

6 +inan$ia" he"p easi"y avai"ab"e to $usto)ers*

8 e"ative"y "o rate of interest and the dis$ount of pri$es offered by the

dea"ers and )anufa$turers "ead to the in$reasing de)and for to hee"er

vehi$"es*

9 arge )ar(et for the high perfor)an$e seg)ent hi$h is in$reasing ith the

up"ift)ent of the "ifesty"e of peop"e*

; 2ur$hasing poer has in$reased of $usto)ers*

= Strategi$ a""ian$e ith 1B and AV for te$hno"ogy transfer*

Treat

3 onda )otor$y$"es and s$ooters India has be$o)e aggressive and "aun$hing

produ$ts for )ass )ar(et in 3>>$$ eg* !rea) yuga

4 Ba%a% )otors is a strong $o)petition in pre)iu) seg)ent

5 +!I announ$ed in auto)obi"es is 3>>Q

6 2etro" pri$es are in$reasing thus sa"e of pre)iu) seg)ent bi(es )ay de$rease

8 A"u)inu) and stee" pri$es i"" in$rease*

9 Strong $o)petition fro) Indian as e"" as internationa" brands

; !ependen$e on govern)ent po"i$ies and rising fue" pri$es

To understand deeper on the avai"ab"e seg)ents HMotor$y$"es and the respe$tive

offerings 7

+& E#onom8 Se7ment (


40/61

)& E;e#uti


41/61

5& Premium Se7ment (

1ven though the nu)ber of offerings in the pre)iu) seg)ent see)s high# )aDi)u)

vo"u)e $hurners sti"" re)ain the produ$ts in eDe$utive , e$ono)y seg)ents* Eith an

aggressive pri$ing for 2u"sar 4>> NS , !u(e 4>>P Ba%a% p"ans to gain strategi$a""y in

ter)s of vo"u)es over the period of ti)e* Ba%a%s do)inan$e in 1De$utive seg)ent is

the the pri)ary reason for its high operating )argin and thus e)erge as one of the

)ost profitab"e 47hee"er 01Ms*


42/61

Profile of te Indian )(=eeler #ompanie$ (

HeroMotoCorpis no or"d@s "argest )anufa$turer of to7hee"ers* The $o)pany

has benefited fro) the de)and shift to )otor$y$"es# as it fo$uses so"e"y on this

produ$t seg)ent Ha"though has a produ$t $a""ed 2"easure in S$ooter seg)ent* Eith

fue" effi$ien$y and riding $o)fort as the )ain se""ing points# M/ has been ab"e to

address a ide )ar(et and post robust sa"es groth even after its separation fro) the

Japanese )a%or onda*

"a9a9 Autois e"" positioned in the )otor$y$"e seg)ent as the 4nd "argest p"ayer

ith around 5>Q )ar(et share* 0ver the "ast de$ade# the $o)pany has su$$essfu""y

$hanged its i)age fro) a s$ooter )anufa$turer to a to7hee"er )anufa$turer* Its

produ$t range en$o)passes s$ooterettes# s$ooters and )otor$y$"es* Though the

$o)pany is )i"es behind ero in ter)s of sa"es vo"u)es# it is no India@s )ost

profitab"e to7hee"er )anufa$turer*

T3S Motor Compan8 /imited is the third "argest to7hee"er )anufa$turer in

India* It is the f"agship $o)pany of the parent TVS Group e)p"oying over 6>#>>>

peop"e ith an esti)ated 38 )i""ion $usto)ers* It )anufa$tures

)otor$y$"es# s$ooters# )opeds and auto ri$(shas* TVS Motor is $redited ith )any

innovations in the Indian auto)obi"e industry# notab"e a)ong the) being the

introdu$tion of Indias first to7seater )oped# the TVS 8>$$* The $o)pany be$a)e

the "eader in its $ategory of sub 3>> $$ )opeds# having so"d ; )i""ion units* It a"so

introdu$ed the TVS S$ooty# hi$h is Indias se$ond "argest brand in the s$ooterette

seg)ent* The TVS Jive "aun$hed in Nove)ber 4>>? be$a)e Indias first $"ut$h7free

)otorbi(e ai)ed at a stress7free rider eDperien$e* But the groth in +34 as dis)a"

and see)s to "ose ground against $o)petition*

Honda Motor#8#le and S#ooter India# 2rivate i)ited HMSI is the ho""y oned

Indian subsidiary of onda Motor /o)pany# i)ited# Japan* +ounded in 3???# it as

the fourth onda auto)otive venture in India# after ero onda# Kineti$

onda Motor td and onda Sie" /ars India* The entry of onda into the Indian

)ar(et as MSI began ith the "aun$h of the onda A$tiva# a 3>> $$ s$ooter* A

s"ight"y )odified trendier version of the A$tiva as soon "aun$hed# as the onda


43/61

!io* onda 1terno as "aun$hed thereafter to add to the portfo"io of MSIs s$ooters*

The onda Uni$orn as the first )otor$y$"e re"eased by MSI* The onda Shine has

sin$e been re"eased*

India 0amaa Motor# IM Hoffi$ia""y India a)aha Motor 2rivate i)ited is

an Indian subsidiary of a)aha Motor /o)pany# for)ed in 4>>= as a %oint venture

ith Mitsui* It produ$es a range of )otor$y$"es for do)esti$ $onsu)ption and eDport*

a)aha )otors in India have been present in the )ar(et of "o range e$ono)y bi(es

for a "ong ti)e* A"" bi(es in their store ere designed for )ass )ar(et# but ith the

introdu$tion of +739# +7S# +aCer# and 38 they have )ade an i)pression on the

)id range bi(e )ar(et in India*

Suu6i Motor#8#le India2vt* td* is a subsidiary of one of the or"ds "eading to7

hee"er )anufa$turer SuCu(i Motor /orporation* The $o)pany@s produ$ts in$"ude

)otor$y$"es and s$ooters* The $o)pany as in$orporated in 3??; in India*

Maindra T=o :eeler$i)ited HMTE is ba$(ed by the Mahindra 1ngineering

Servi$es HM1S# the Ita"y7based design house# engines engineering and Taian@s

Sanyang Industry /o)pany i)ited HSM* In 4>33 Mahindra be$a)e the first

Indian to7hee"er )anufa$turer to enter the Moto Grand 2riD /ha)pionships* This

to hee"er )a(er for)a""y entered the to hee"er industry by a$.uiring ith the

su$$essfu" a$.uisition of business assets of Kineti$ Motor /o)pany i)ited*

Mar6et Sare Trend$

The Indian )otor$y$"es seg)ent $ontinues to be do)inated by ero Moto/orp hi$h

has )aintained its )ar(et share at over 88Q in the do)esti$ )otor$y$"es seg)ent

over the "ast five .uarters* The top three p"ayers a$$ounted for =?*8Q of the industry@s

vo"u)es in 5# 4>33734 H?4*>Q in 4>>;7>=# ith onda Motor$y$"es re$"ai)ing its

spot as the third "argest p"ayer# a position hi$h it had "ost out to TVS in the previous

.uarter after having retained it sin$e 6# 4>>?73>* In the ;87348$$ seg)ent of

)otor$y$"es Hthat represented ;3Q of tota" )otor$y$"es sa"es vo"u)es in ?)# 4>337

34# ero Moto/orp $ontinues to be a strong )ar(et "eader ith a share of ;6*4Q in

?)# 4>33734 H;>*6Q in ?)# 4>3>733* In the 348$$ seg)ent of )otor$y$"es# hi"e


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Ba%a% Auto $ontinues to a$$ount for near"y ha"f the seg)ent@s vo"u)es H6?*3Q in ?)#

4>33734# a)aha has been the fastest groing having i)proved its )ar(et share

fro) =*3Q in ?)# 4>3>733 to 3>*3Q in ?)# 4>33734*

CHAPTER 5' RESEARCH METHO1O/OG0


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)2+ O>7s

3#8>> in May# )oved up average rea"isations for the $o)pany* It stood at s 5?#5>> in

the .uarter ended June vis7Y7vis s 5;#=>> "ast year* en$e# despite a 8 per $ent drop

in overa"" sa"es vo"u)e# the fa"" in net sa"es as restri$ted to about 3 per $ent* This

as further aided by a drop in ra )ateria" eDpenses# hi$h he"ped the $o)pany ho"d

on to the sa)e operating )argins of 36*= per $ent as in the June 4>34 .uarter*

!espite "oer depre$iation and a)ortisation $harges and higher other in$o)e# net

profit de$"ined by 33 per $ent to s 86= $rore as taD eDpenses shot up*

)2) Ob9e#ti


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Se$ondary data as $o""e$ted through on"ine %ourna"s# previous studies done in sa)e

fie"d# $o)pany ebsites# on"ine arti$"es# boo(s and )agaCines


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CHAPTER ,' ANA/0SIS

1ifferent Produ#t /ine of Hero MotorCorp


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KARIMA MR

1ngine Type

Air $oo"ed# 67 stro(e sing"e $y"inder 0/# +ue" In%e$tion# 0i" /oo"er

!isp"a$e)ent

445 $$

KARIMA

1ngine Type

Air $oo"ed# 67Stro(e Sing"e /y"inder 0/

!isp"a$e)ent

445 $$


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TREME

1ngine Type

Air $oo"ed# 6 7 stro(e sing"e $y"inder 0/

!isp"a$e)ent

36?*4 $$

H.NK

1ngine Type

Air $oo"ed# 6 7 stro(e sing"e $y"inder

!isp"a$e)ent

36?*4 $$

IMP./SE

1ngine Type

Air $oo"ed# 67 stro(e sing"e $y"inder 0/# 1"e$tri$ start


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!isp"a$e)ent

36?*4 $$

ACHIE3ER

1ngine Type

Air7$oo"ed# 67stro(e sing"e $y"inder 0/

!isp"a$e)ent

36?*3 $$


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IGNITOR

1ngine Type


!isp"a$e)ent

346*; $$

G/AMO.R

En7ine T8pe

Air Cooled , ( Stro6e Sin7le C8linder OHC

1i$pla#ement

+),2 ##

S.PER SP/EN1OR

1ngine Type



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!isp"a$e)ent

346*; $$

MAESTRO

1ngine Type

Air $oo"ed# 6 7 stro(e sing"e $y"inder 0/# Se"f Start

!isp"a$e)ent

3>? $$

P/EAS.RE

1ngine Type


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!isp"a$e)ent

3>4 $$

PASSION PRO

1ngine Type


!isp"a$e)ent

3>?*3 $$


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PASSION PRO

1ngine Type


!isp"a$e)ent

?;*4 $$

PASSION PRO TR

1ngine Type

Air /oo"ed# 67Stro(e Sing"e /y"inder 0/

!isp"a$e)ent

?;*4 $$

SP/EN1OR ISMART

1ngine Type

Air /oo"ed# 6 7 Stro(e Sing"e /y"inder 0/

!isp"a$e)ent


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?;*4 $$

SP/EN1OR PRO C/ASSIC

1ngine Type

Air /oo"ed# 6 7 Stro(e Sing"e /y"inder 0/

!isp"a$e)ent

?;*4 $$

HF 1E/.E ECO

1ngine Type


!isp"a$e)ent

?;*4 $$

2rodu$t strategy and p"anning invo"ve de$isions about the fir)@s target )ar(et#

produ$t )iD# pro%e$t prioritiCation# resour$e a""o$ation# and te$hno"ogy se"e$tion*

Mansfie"d and Eagner H3?;8 sho that these fa$tors have a signifi$ant inf"uen$e on


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the probabi"ity of e$ono)i$ su$$ess* In stru$tured deve"op)ent environ)ents# produ$t

p"anning often resu"ts in mission statements for pro%e$ts and in a product plan or

roadmap, usua""y a diagra) i""ustrating the ti)ing of p"anned pro%e$ts* Spe$ifi$

de$isions in$"ude the fo""oing* Ehat is the fir)@s target )ar(et Ehat portfo"io of

produ$t opportunities i"" be pursued Ehat is the ti)ing of the produ$t deve"op)ent

pro%e$ts Ehat assets i"" be shared a$ross produ$ts Ehi$h te$hno"ogies i"" be

e)p"oyed in the p"anned produ$ts 1fforts are genera""y )ade to $oordinate these

de$isions ith the fir)@s $orporate# )ar(eting# and operations strategies*

!e$isions are )ade about eDe$uting produ$t deve"op)ent pro%e$ts in para""e" and

sharing resour$es a$ross different pro%e$ts* The resear$her high"ights the $ongestion

effe$ts that arise fro) pursuing )u"tip"e produ$t deve"op)ent pro%e$ts in para""e"*

Their produ$tion7pro$ess )etaphor a"so he"ps understand the pitfa""s of high $apa$ity

uti"iCation and pro$essing ti)e variabi"ity in deve"op)ent pro%e$ts* esour$e sharing

)ay# hoever# "ead to better uti"iCation of resour$es# redu$tion in re.uired

deve"op)ent hours# as e"" as better "earning a$ross pro%e$ts* Substantia" sharing of

assets a$ross produ$ts resu"ts in the deve"op)ent of produ$t p"atfor)s* Mu$h of the

or( on p"atfor)s# hoever# fo$uses on"y on p"atfor) benefits* obertson and U"ri$h

H3??= high"ight the "oss of $usto)er7per$eived differentiation due to p"atfor)s# andresear$her dis$uss the overdesign of "o7end produ$ts due to produ$t p"atfor)s* A (ey

$o)ponent of produ$t p"anning is the de$ision about hi$h te$hno"ogies to

in$orporate in a forth$o)ing produ$t* Ehi"e prospe$tive te$hno"ogies are attra$tive

a"ong severa" di)ensions# they are a"so not fu""y proven# and $an in$rease the degree

of ris( of the ne produ$t deve"op)ent pro$ess* The resear$her dis$usses the &piCCa7

bin approa$h#' in hi$h produ$ts are asse)b"ed fro) proven te$hno"ogies* Ehi"e this

approa$h $an )a(e the deve"op)ent pro$ess )ore )anageab"e# $o)petitive$onditions )ay re.uire a fir) to deve"op te$hno"ogies and produ$ts si)u"taneous"y*


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CHAPTER 4' FIN1INGS AN1 O"SER3ATIONS

After )ega $orporate restru$turing of o"d# trusted and do)inant brands# there is a fear

hether the ne $orporate entity and the ne brands i"" be ab"e to re$eive the sa)e

response as the "ong trusted origina" entity had* 0n the other hand# $onsu)ers or

$"ients are a"so under i))ense doubt hether the ne $orporate entity or its brands

are a"so going to be as trustorthy as the origina" brand as* en$e# it be$o)es

in$reasing"y i)portant that a brand repositioning and a very strong $o))uni$ation of

its ne position ta(es p"a$e*

ero Moto$orp is one su$h $"assi$ eDa)p"e in hi$h after divor$e ith Japanese

partner# onda hi$h as providing the te$hno"ogi$a" support# there ere $on$erns

a"" over and hen$e the $o)pany had to do the )ega# brand repositioning eDer$ise*

The (ey point in the $ase is ho sa"es 2ositioning and the "oya"ty progra) in genera"

have persuaded $usto)ers to use the $redit $ard as a dai"y pay)ent )ethod and that

ay $ontributed to "ong7ter) sa"es* 2eattie , 2eattie H3??5 state that if $onsu)ers

are satisfied ith the brand that is being pro)oted# it is )ore "i(e"y that they i"" a"so

buy it "ater after the 2ositioning is over* Thus# if $usto)ers are satisfied# it is "i(e"y


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that "ongter) sa"es are a"so inf"uen$ed positive"y*

Ke8 ob$er $$ to 4>>$$ is fast )oving*

Most of the desponden$es are agree that the bi(es are de"ivering proper ti)e*

The servi$e provide by ero Moto/orp is satisfied by )ore than ;>Q of$usto)ers*

Brand na)e of ero is sti"" good in )ar(et after sp"it ith onda

ua"ity# pri$e# Brand i)age# +ue" effi$ien$y is getting e.ua" i)portan$e in

satisfa$tion


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CHAPTER D' CONC/.SION

/usto)er satisfa$tion is a )ar(eting too" and a definite va"ue added benefit* It is often

per$eived by $usto)ers as i)portant as the pri)ary produ$t or servi$e your

organiCation offers*

+or )a(ing a better re"ationship ith $usto)er they a"ays use genuine parts in their

produ$t* And after se""ing they have the servi$es and )aintenan$es* Their $onstant

endeavor is to support the $o)panys )andate of providing highest "eve" of $usto)er

satisfa$tion by ta(ing good $are of $usto)er@s to7hee"er servi$e and )aintenan$e

through their vast netor( of )ore than 43>> $o))itted dea"ers and servi$e out"ets

spread a$ross the $ountry*

Apart fro) that hero Moto/orp td fo$used on $"ean"iness and other aestheti$s of the

servi$e stations and add su$h air $onditioned aiting area# internet surfing# $offee

shops et$ to enhan$e the in house eDperien$e of the $usto)ers at those &$usto)er

tou$h point'* To ensure that )i""ions of $usto)ers in the rura" area are not "eft aiting

for ade.uate servi$e as it is i)possib"e for the $o)pany to introdu$e servi$e station at

every noo( and $orner of the $ountry# )obi"e servi$e stations are regu"ar"y arranged

ith prior inti)ation to pub"i$ about the rout that the )obi"e or(shop ou"d ta(e

hen passing through that region so that $usto)ers $an $o)e and get their to

hee"ers servi$ed* A"" these a$tivities are ai)ed to in$rease the $usto)er "oya"ty and

thus retaining $usto)ers*


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CHAPTER -' RECOMMEN1ATION

+ro) the findings e $on$"ude that a $usto)ers hi"e pur$hasing a bi(e#

$usto)ers ta(es into $onsideration )ain"y fue" effi$ien$y# good "oo(s# "o

)aintenan$e $ost and re"iabi"ity*

The )ain $o)petitors of ero are Ba%a% Auto# a)aha# TVS# SuCu(i*

The $onsu)er preferen$e basi$a""y depends upon ider netor( and better

servi$es*

/usto)ers are inf"uen$ed )ore to buy a produ$t by advertise)ents rather than

dea"er friend@s or fa)i"y re$o))endations*

ero ant to deve"op )ore pro)otion for there so)e )ode"s "i(e sports bi(e

and gear "ess s$ooter ero bi(es $an $on$entrate to in$rease their eDport )ar(et

ero Moto/orp td shou"d try to give )ore advertise)ents in nes paper# bi""

boards in that area to enab"e easy re$a"" of the peop"e for ero Moto/orp td*

ero Motors $an a"so in$rease )ode"s attra$ting the Indian youth*


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"I"/IOGRAPH0

*hero)oto$orp*$o)

*bi(ea"e*$o)

info*shine*$o)

*sia)india*$o)

*hero*$a

Final Project Hero Moto Corp Bba

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