Her Oho Nda

8/3/2019 Her Oho Nda

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MARKETINGSTRATEGY

OF



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Hero Honda’s important strategy is thatthey are concentrating on rural.

They produce products (motorcycles)which are fuel-efficient and have lowmaintenance.

They give advertisements in differentmedia vehicles time to time by which

customer attention is achieved.

GROWTH STRATEGIES



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Hero Honda use foreign collaborations toassist in new design and productionprocess.

To build a strong customer relationshipthey also organize free service campsevery year.

Hero Honda offers cheapest motorcyclesin India, cost between 38,000 to48,000.



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SEGMENTATION & TARGETING

Splendor – Price oriented people

Glamour – Price as well as tech. orientedpeople

Karizma – Status oriented people



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Advertising

o Discarded product categorization on the basis

of engine size

o Product differentiation was the key

o Avoided customer confusion of products

o Karizma (premium segment) comes with the

punch line, “Always game”



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Types of Advertisements

Print advertisemensts

Outdooradvertisemensts

Celebrity advertisements



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Types of Advertisements

Covert advertisemensts

mhujhe kuch kehana hai-cbz

gavaskar-border trophy-hero honda bikes as man of thematch.

Broadcast advertisemensts

HERO HONDA RODIES

HERO HONDA SAREGAMAPA

Public service advertisements

o “DESH KI DHADKAN”



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Personal selling

Wide price range.

Each product with multiple optional features.

First six service free

Once in a year free check up for hero honda bikesfrom authorized company service station.

Various schemes for government and militaryemployees.



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Print Advertisements



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Outdoor Advertisements



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Sales Promotion

Large product portfolio starting from 37k to 95k

Consistent launch of variants in the same models

Wide range of colors available in each category

Vast network of more than 2100 committed Dealers andService outlets spread across the country



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Sales Promotion...contd



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Pleasure promotionalfeatures

6 free services

2 years warranty

9 shades of color

Auto start



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CSD

Choose bike of your choice at aconsiderable lesser price i.e. at CSDprice anywhere in India

Who can book?

All commissioned officers / staff -either retired or currently serving in

the Indian Army, Navy or Air Force -can avail of this facility



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Direct Selling

q Helpful staff

q 2100 authorized dealers

q Concentrated on brand rather than offering discount. HeroHonda hasn't been offering discounts since two years.

q MoU with PNB in 2003

q According to MoU, PNB will offer motorcyclefinancing for all Hero Honda bikes at 11 per centfor a period of 1 year and 11.5 per cent for aperiod of five year. PNB will finance up to 90 percent of the on-road price of Hero Honda bikes.



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COMPETITORS

Major players are:

– Bajaj Auto Ltd.

– Honda Motorcycle & Scooter India Ltd.

Minor players are:

– Suzuki Motorcycles India Ltd– Yamaha

– Royal Enfield (Niche Segment)



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A rural vertical was set up sometime in 2007.Five hundred sales representatives weretaken on board for the mission Har Gaon, Har

Aangan (every village, every courtyard.)

These representatives have been given work tasks and not sale targets - they need tomeet potential customers and opinion leadersin villages.

To strengthen their network in rural areas,

Rural Marketing strategy



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The company has recruited local people as

sales executives and trained them.

The most successful product is splendor inrural market and the company kept onfocusing on upgrading the models so, thenthey later came up with splendor plus andsplendor nxg, which provided extrafeatures and the consumers were satisfied.

Under the rural vertical, they startedcollecting a lot of data at rural touch

points many of their dealers are now



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The company conducts skits or drama’s

in villages and give some socialmessage. it attracts the crowd andadvertises its product.

Once you earn the villagers loyalty (andthey are known for their brand loyalty),

it will be difficult for competitors to takeaway your customers.



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Key products



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The rural consumer values old customs andtradition. They do not prefer changes.

The Infrastructure Facilities like roads,warehouses, communication system, financialfacilities are inadequate in rural areas.

The price its competetors are providing isalso becoming the threat. For example: bajajauto’s platina is priced at 38,115.

Challenges faced

in Rural Market



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The literacy rate is low in rural areas as

compared to urban areas. This againleads to problem of communication forpromotion purposes.

The dealerships in rural areas is limitedbecause of which the customer has to goto near by city to buy the product.

Spare parts of Hero Honda are costlierthan other companies spare parts, sothere is problem for rural people to

afford.

Ad ti t



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Advertisements

Advertisements

TVC ADDS….!

Radio ….!Magazines…!

X-changemelas



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Hero Honda offers

cheapest motorcyclesin India, cost between

38,000 to 48,000.



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PUNCH LINE

The punch line of Hero Hondagives a emotional touch tocustomers “DESH KI

DADKHAN”.



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Corporate &Social

Responsibility..



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STAKEHOLDER TIES

AT THE GRASSROOTSHero Honda Motors takesconsiderable pride in itsstakeholder relationships,especially ones developed at the

grassroots. The Companybelieves it has managed to bringan economically and sociallybackward region in Dharuhera,

Haryana, into the nationaleconomic mainstream

I t t d R l D l t



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Integrated Rural DevelopmentCentre

Centre has been set up on 40 acres of land along

the Delhi-Jaipur Highway. The Centre-complete withwide approach

-ROADS,

-CLEAN WATER,

-AND EDUCATION FACILITIES

for both adults and children



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MANDIR

The Raman Munjal Vidya Mandir began with three classes (up to class II)and 55 students from nearby areas.

It has now grown into a modern Senior

Secondary, CBSE affiliated co-educational school with over 1200students and 61 teachers.

The school has a spacious playground, anultra-modern laboratory, a well-equippedaudio visual room, an activity room, awell-stocked library and a computer centre.



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RAMAN MUNJAL MEMORIALHOSPITAL Multi-specialty hospital equipped with

theI. latest diagnostic

I. surgical technology.

It provides healthcare to the

RURAL POPULATION in and aroundDharuhera,

ACCIDENT AND TRAUMA VICTIMSdriving along the Delhi-Jaipur highway.

RAMAN MUNJALMEMORIALHOSPITAL

Ad lt Lit Mi i



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Adult Literacy Mission

launched on 21st September,1999

villages of Malpura, Kapriwas

and Sidhrawali

The project started with amodest enrolment of 36 adults.

Hero Honda is now in theprocess of imparting Adult

Literacy Capsules to

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