Hero motocorp ltd
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Transcript of Hero motocorp ltd
HERO MOTOCORP
LTD.
Presented By:-Akash Mishra MBA
INTRODUCTIONHero Moto Corp Ltd. is the world’s largest manufacturer of
two-wheeler, based in India.
In 2001,the company achieved the best position of being the largest two-wheeler manufacturer in India and also, the “World’s No.1” two-wheeler company in terms of unit volume sales in a calendar year. Hero Moto Corp Ltd. continues to maintain this position till date.
Company continues to lead the domestic motor cycle market with 54.6% market share
IMPORTANT PEOPLEFounder:- B.M MUNJAL
Director:- BRIJ MOHANLALManaging Director:- PAWAN MUNJAL (C.E.O)
productsHero product range includes variety of motor cycles that
have set the industry standards across all the market segments.
The company also started manufacturing scooter in 2006.
Hero offers large number of product and serve to wide variety of requirement across all the segments.
Key strategiesTo build a strong product portfolio.Explore growth opportunities globally.Improve its operational efficiency continuously.Aggressively expand its reach to customers.Continue to invest in brand building activities. Ensure customer and shareholder delight.
competitors1. Bajaj Auto
2. TVS Motor
3. Mahindra
4. LML ( Lohia Machinery Limited)
Market presencePRODUCT :CD Dawn, Splendor, Passion, Glamour , CBZ, Karizma etc.PRICE :Price of Hero Bikes starts from Rs.39478 to Rs.1,10655.
SEGMENTATION and TARGETING :
Splendor- Price oriented people. Glamour- Price as well as Tech oriented people. Karizma- Status oriented people.
POSITIONING :Worlds largest motor cycle manufacture company. It is
known by its sale of over 15 million bikes.
missionsHero Moto Corp’s mission is to become a global
enterprise fulfilling its customer’s needs and
aspirations for mobility.
Setting benchmarks in technology, styling and quality
so that it converts customers into brand advocate.
Organisation StructureProvide friendly environment to employees.
Encourage its employees to put in their best.
Embedded with humanity and honesty to achieve mutual respect.
JOINT VENTURE
HERO BEFORE JOINT VENTURE
Hero cycles manufactured 16000 cycles per day.
Sold about 86 million bicycles till 2002.
Nurtured an excellent network of dealers to serve India's expansive market.
HONDA STRATEGIES Honda motor company initially planned to enter two wheeler
segment and electric generator segment
Honda first chose kinetic engineering ltd. and formed Kinetic Honda
Motors Ltd. joint venture for scooter manufacturing
It chose Hero Group for motor cycle
manufacturing as joint venture.
WHY HERO FOR JOINT VENTURE
Wide Distribution Network Through
Dealers
Better Understanding Of
The Market Dynamics
Limited options with Honda
Wide Experience In Manufacturing of
Vehicles
DEAL IS DONE!Joint Venture came up in June 1984 -Hero Honda Motors
Ltd.\Honda would provide technical know how and assist in setting
manufacturing facilities,
Honda agreed for $500000 as one time wage sum fees and 4%
loyalty
Joint Venture had 26% equity each with 26% to the public and rest
with the financial institutions
THE SPLIT...HERO HONDA 1984 - 2010
HERO
MOTOCORP LTDPaid
2,479 crore for assembly,
manufacture
, selling
which have been reduce over a
period of 42 month
HONDA-
Entered
into a share transfer
agreement -
Entire share holding of 26% transferred to
Hero, bringing an
end to
the join
t venture
REASONS FOR SPLITReason 1 •Higher Royalty Payments
Reason 2 •Refusal of Hero Honda to merge the company's spare parts business with HMSI
Reason 3 •Partners turning into Competitors
After Splitting New logo PUNCHLINE Hum Mein Hai Hero
Thank You