Marketing Strategy in Hero Moto Corp1

8/13/2019 Marketing Strategy in Hero Moto Corp1

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PREFACE

If we want to go global in the world market then we must know the trend of the

market, what features must be there in the product so that it should get popularity

among the masses and also should know about competitors position in every field.

The objective of survey is to know the strategy of Hero Moto orp in the world

market and we must know what should be the price range and what types of

marketing should be done so that it gets familiar with every type of person. !o needs

and objectives of the market survey is very important to get a good market share ,

stand in the market and to survive the business in the present competitive world where

there is a trend of cutthroat competition.

Hero Moto orp is a leading company in bikes sector. "nowing the comparative

position of a brand vis#$#vis its competitors is an essential thing as well as product is

essential for deciding appropriate marketing strategies for any company.

It was then the project was undertaken in order to

%. &hat is the prospective customers market for Hero Moto orp in the world

'. "now the choice of residents of other foreign countries

(. "now the brand image of Hero Moto orp

). *erceive the future sales of Hero Moto orp products

+. *ricing in the view of prospective customers

. Mode of purchasing the product


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TABLE OF CONTENTS

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INTRO,-CTION

The Indian Two .heeler Industr/

The Indian two wheeler sector contributes the largest volumes amongst all the

segments in automobile Industry. Though the segment can be broadly categori;ed in

to (#sub segments vi;< scooters, motorcycles and mopeds< some categories introduced

in the market are a combination of two or more segments e.g. scooter and stepthrus.

The market primarily comprises five players in the two wheeler segment with most of

the companies having foreign collaborations with well known =apanese firms earlier.

:ut with most of the companies now planning %>>? subsidiaries in India.

In the last four to five years, the two#wheeler market has witnessed a market shift

towards motor cycles at the e@pense of scooters. In the rural areas, consumers havecome to prefer sturdier bikes to with stand the bad road conditions. In the process of

the share of motor cycle segment has grown from )A? to +A?, the share of scooters

declined drastically from ((? to '+?, while that of mopeds declined by '? from

%B? to %C? during the year '>>B#%>. 0ll new vehicles are a now being replaced by )

stock motorcycles. -educed e@cise duties and fierce competition has led to a fall in

prices of certain models.

Hero, a name synonymous with two wheelers in India, began its journey around four

decades ago. !tarting as a manufacturer of by cycle components, hero has today

grown into a multiunit, multi#product, geographically diversified group of companies.

The hero group began with simple *hilosophyD to provide e@cellent transportation to

the common man, at a price he could easily afford. ven today the dream providing

the total satisfaction is all its sphere of activity. To consumers, in e@cellent products at

an affordable price< a thorough understanding the fast changing consumer

understanding the fast changing consumer behaviour, new market segment and

opportunities, and marketing mi@ sensitive changing customer needs from the core of

Heros marketing strategy and philosophy.

Hero Moto orp. is one of the leading companies in the two wheeler Industry. 0t

present, it is segment with around )C? the market share during financial yr. '>>>#>%.

The company ahs emerged one of the most of successful players, much ahead of it

competitors by it superior and reliable product Euality complemented with e@cellent

marketing techniEues.


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Hero Moto orp has been an early entrant in the )#stroke segment of the two wheeler

industry. &ith a right mi@ of product styling and pricing the company has graped the

)#stoke market as compared to :ajaj 0uto and T8!.

T8! Motors 3td has been the largest manufacturer of mopeds which are prevalent as

a low cost transportations and provide a tremendous potential is all parts of India.

However the company is likely to face threat :ajaj 0uto 3td F:03G which continued

its price based competitions and Hero Moto orp cycle and !cooter 3td. a new

entrants in the ' wheeler market.

Infact the company has achieved e@celled the Industry growth rates by a huge margin.

/rom 0pril to 4ecember '>>A while the motor cycle industry sales were upto

(A.A? T8! motors sales surged by a whooping C(.? sat more importantly it is the

success of its model 8ictor.

:aja 0uto has continued with its impressive performance witnessing significant

growth is the motor cycle and three wheeler segments. :ased on the performance fill

data one can e@pect the company to meet it e@cellence by /7>B.

Hero Moto orp is the largest player is the motorcycle segment. /ocused on

contemporary design and style, the company has a compare leusine ranges bikes vi;> 4

4#%>> !!

!plendor

!treet !mart

!teek

:

*assion

It splendor model is an urban centric with its fuel efficiency which accounts to over

>#C>? of its sales. The passion launched in mid =an. '>>% has a resending success

contributing to '? of its sales.

T8! offers a wide ranges of two#wheelers motorcycles# 8ictorJ/ieroJMa@%>>J

ma@%>>-JMa@ 43.

!cooterette# T8! scooty

Moped# chapJ3J3 superJ3 supper H4Jsports.

T8! plans to launch ) new models in the coming %+ months. 0 )#stroke version of

Indias best selling scooterttes< T8!#scooty and )#stroke version of the e@isting

moped line will be launched this year.


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CO0PAN1 PROFILE

Fill it Shut it For!et it

&hat started out as a =oint 8enture between Hero 5roup, the worldKs largest bicycle

manufacturers and the Hero Moto orp ompany of =apan, is today the leading

manufacturer of IndiaKs largest selling motorcycle. oming into e@istence on =anuary

%B, %BA). Hero Moto orp gave India nothing less than a revolution on two#wheels

made even more famous by the K/ill it # !hut it # /orget itK campaign. 4riven by the

trust of over (> lakh customers, the Hero Moto orp product range today commands

as much as )C? making it a veritable giant in the industry. 0dd to that technological

e@cellence, an e@pansive dealer network, and reliable after sales service, and you have

one of the most customer#friendly companies.

In fact, every second bike sold in India today is a Hero Moto orp L ustomer

satisfaction, a high Euality product, the strength of Hero technology and the Hero

groupKs dynamism have helped HM3 scale new frontiers and e@ceed limits.

In the words of Mr. :rijmohan 3all Munjal, the hairman and Managing 4irector,

&e will continue to make every effort reEuired for the development of the

motorcycle industry, through new product development, technological innovation,

and investment in eEuipment and facilities and through and through efficient

management.


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0ILESTONE

2E1 0ILESTONES OF 3ERO 0OTO CORP

1ear E4ent

"*)$ =oint ollaboration 0greement with Hero Moto orp, 3td.,

"*)% Hero Moto orp. Incorporated

"*)& /irst motorcycle 4 %>> rolled out

"*)( %>>,>>>th motorcycle produced

"*)* 1ew motorcycle model # !leek introduced

"**" 1ew motorcycle model # 4 %>> !! introduced +>>,>>>th motorcycle

produced

"**# -aman Munjal 8idya Mandir inaugurated # 0 !chool in the memory of

founder

"**% 1ew motorcycle model # !plendor introduced %,>>>,>>>th motorcycle

produced

"**( 1ew motorcycle model # !treetN and 'nd manufacturing plant at 5urgoan

inaugurated

"**) ',>>>,>>>th motorcycle produced

"*** 1ew motorcycle model # : introduced nvironment Management !ystem

of 4haruhera *lant certified with I!2#%)>>% by 418 Holland -aman Munjal

Memorial Hospital inaugurated # 0 Hospital in the memory of founder

Managing 4irector, Mr. -aman "ant Munjal

#+++ ),>>>,>>>th motorcycle produced nvironment Management !ystem of

5urgaon *lant certified I!2#%)>>% by 418 Holland !plendor declared

K&orld 1o. %K # largest selling single two#wheeler model Hero Moto orp

*assport *rogrammed # -M *rogrammed launched

#++" 1ew motorcycle model # *assion introduced 2ne million production in one

single year 1ew motorcycle model # =oy introduced +,>>>,>>>th motorcycle

produced

#++# 1ew motorcycle model # 4awn introduced 1ew motorcycle model #

0mbition introduced 0ppointed 8irender !ehwag, Mohammad "aif, 7uvraj

!ingh as :rand 0mbassadors

#++$ :ecomes the first Indian ompany to cross the cumulative C million sales mark

!plendor has emerged as the &orldKs largest selling model for the third

calendar year in a row F'>>>, '>>%, '>>'G 1ew motorcycle model # 4


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4awn introduced 1ew motorcycle model # !plendor O introduced 1ew

motorcycle model # *assion *lus introduced 1ew motorcycle model

#"ari;ma introduced

#++% 1ew motorcycle model # 0mbition %(+ introduced Hero Moto orp became

the &orld 1o. % ompany for the third consecutive year. rossed sales of

over ' million units in a single year, a global record. !plendor # &orldKs

largest selling motorcycle crossed the + million mark 1ew motorcycle model #

:P introduced =oint Technical 0greement renewed Total sales crossed a

record of %> million motorcycles

#++& Hero Moto orp is the &orld 1o. % for the )th year in a row 1ew motorcycle

model # !uper !plendor introduced 1ew motorcycle model # 4 4elu@e

introduced 1ew motorcycle model # 5lamour introduced 1ew motorcycle

model # 0chiever introduced /irst !cooter model from Hero Moto orp #

*leasure introduced

#++' Hero Moto orp is the &orld 1o. % for the +th year in row /ill it. !hut it.

/orget it.

#++(

#Hero Moto orp. has appointed Mr. 7utaka "udo as 4irector and &hole#time4irector of the ompany in the category of @ecutive 4irector w.e.f. 0pril %,

'>>C.

# Hero Moto orp is the &orld 1o. % for the th year in a row

# 1ew K!plendor 15K launched

# 1ew K4 4elu@eK launched

# 1ew K*assion *lusK launched

# 1ew motorcycle model KHunkK launched

# '> million production milestone achieved

#++)

# Hero Moto orp has informed that Mr. 0run 1ath Maira. has been appointed as an

0dditional 4irector in the category of 1on @ecutive and Independent 4irector

w.e.f. 4ecember '>, '>>A by the :oard of 4irectors by way of passing a resolution

by circulation.

# Hero Moto orp Haridwar *lant inauguration

# 1ew K*leasureK launched

# !plendor 15 lauched with power start feature


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# 1ew motorcycle model K*assion *roK launched

# 1ew K: tremeK launched

# '+ million production milestone achieved

# 4 4elu@e lauched with power start feature

# 1ew K5lamourK launched

# 1ew K5lamour /iK launched

#+"+

# Hero Moto orp has appointed Mr. -avi 1ath as an 0dditional 4irector in the

category of 1on @ecutive and Independent 4irector w.e.f. 2ctober %), '>%> by the

:oard of 4irectors by way of *assing a resolution by circulation on 2ctober %), '>%>.

3ERO 0OTO CORP5S 0ISSION

Hero Moto orps mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the Euality, performance and price

aspirations of its customers. 0t the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives Hero Moto orp to new heights in e@cellence and helps the

organi;ation forge a uniEue and mutually beneficial relationship with all its stake holders.

3ERO 0OTO CORP 5S 0AN,ATE

Hero Moto orp is a world leader because of its e@cellent manpower, proven management,

e@tensive dealer network, efficient supply chain and world#class products with cutting edge

technology from Hero Moto orp ompany. The teamwork and commitment are manifested

in the highest level of customer satisfaction, and this goes a long way towards reinforcing its

leadership status.


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BOAR, OF ,IRECTORS

1o. 1ame of the directors category of directorship

% Mr. :rijmohan 3all Munjal

hairman 9 whole#time director

' Mr. *awan Munjal managing director

( Mr. Toshiaki 1akagawa joint managing director

) Mr. 7utaka kudo whole#time director

+ Mr. 2m prakash munjal non#e@ecutive director

Mr. !unil kant munjal non#e@ecutive director

C Mr. Masahiro takedagawa non#e@ecutive director

A Mr. Takashi nagai non#e@ecutive director

B Mr. 1arinder nath vohra non#e@ecutive 9 independent director

%> Mr. *radeep dinodia non#e@ecutive 9 independent director

%% 5en.Fretd.G 8ed prakash maliknon#e@ecutive 9 independent director

%' Mr. 0naljit singh non#e@ecutive 9 independent director

%( 4r. *ritam singhnon#e@ecutive 9 independent director

%) Ms. !hobhana bhartianon#e@ecutive 9 independent director

%+ Mr. !unil bharti mittal non#e@ecutive 9 independent director
http://www.herohonda.com/co_board_directors.htm#1%231http://www.herohonda.com/co_board_directors.htm#2%232http://www.herohonda.com/co_board_directors.htm#3%233http://www.herohonda.com/co_board_directors.htm#4%234http://www.herohonda.com/co_board_directors.htm#5%235http://www.herohonda.com/co_board_directors.htm#5%235http://www.herohonda.com/co_board_directors.htm#6%236http://www.herohonda.com/co_board_directors.htm#6%236http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#9%239http://www.herohonda.com/co_board_directors.htm#9%239http://www.herohonda.com/co_board_directors.htm#10%2310http://www.herohonda.com/co_board_directors.htm#11%2311http://www.herohonda.com/co_board_directors.htm#12%2312http://www.herohonda.com/co_board_directors.htm#12%2312http://www.herohonda.com/co_board_directors.htm#13%2313http://www.herohonda.com/co_board_directors.htm#13%2313http://www.herohonda.com/co_board_directors.htm#14%2314http://www.herohonda.com/co_board_directors.htm#15%2315http://www.herohonda.com/co_board_directors.htm#17%2317http://www.herohonda.com/co_board_directors.htm#17%2317http://www.herohonda.com/co_board_directors.htm#2%232http://www.herohonda.com/co_board_directors.htm#3%233http://www.herohonda.com/co_board_directors.htm#4%234http://www.herohonda.com/co_board_directors.htm#5%235http://www.herohonda.com/co_board_directors.htm#6%236http://www.herohonda.com/co_board_directors.htm#8%238http://www.herohonda.com/co_board_directors.htm#9%239http://www.herohonda.com/co_board_directors.htm#10%2310http://www.herohonda.com/co_board_directors.htm#11%2311http://www.herohonda.com/co_board_directors.htm#12%2312http://www.herohonda.com/co_board_directors.htm#13%2313http://www.herohonda.com/co_board_directors.htm#14%2314http://www.herohonda.com/co_board_directors.htm#15%2315http://www.herohonda.com/co_board_directors.htm#17%2317http://www.herohonda.com/co_board_directors.htm#1%231


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OBJECTIVE

To study Marketing Strategy of Hero Motocorp.

To find out the Market Scenario of Hero

Company.

To know market position of Hero Company

To know the satisfaction of consumer.

To suggest long term strategies to enhance

sales.

To know about the various competitors in the

market.


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Hero 'ar%ma

0arketin! Strate!/

0 thorough understanding of the fast#changing Marketing !trategy, new market

segments and product opportunities along with sensitivity to changing customer needs,form the core of HeroKs marketing strategy and philosophy. 0t Hero we essentially

have a completely customer#driven approach. 0 nation#wide dealer network

comprising of over (,+>> bicycle dealers, (+> dealers for mopeds and ''+ franchise

holders for motorcycles, ensures convenient access to the 5roupKs products across the

country.

&ith a deep sense of belonging to the Hero fraternity, the 5roupKs dealer network has

cataly;ed growth and acted as a strong bridge between the customers and the 5roup.

onventionally, very few Indian bicycle manufacturers were interested in e@ports.

However, the Hero 5roupKs foray into the overseas markets pioneered Indian e@ports in

the bicycle segment as early as %B(. It was a move prompted primarily by the need to

be attuned to the global marketplace.

&hile initial e@ports were restricted to 0frica and the Middle ast, today more than +>

percent of the 5roupKs bicycle e@ports meet the demands of sophisticated markets in

urope and 0merica. This is primarily because of appropriate product development and

e@cellent Euality that Hero offers.

The 5roup has undertaken a steady up gradation of technologies and there has been

diversifications and setting up of newer establishments to meet stringent international

standards. 0t the core of it all is a customer#centric scheme of policies and

production ... and the bottom line is to 0dd 8alue while ngineering !atisfaction.


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0arketin! Strate!/ o6 3ero 0otocorp

PARTNERS3IPS7 ALLIANCES AN, 8OINT 9ENT-RES

HeroKs Euest for a low#budget, fuel#efficient and environment#friendly two#wheeler

led Hero Moto orp to enter into a Technical ollaboration with !teyr 4aimler

*unch of 0ustria in %BAC for the manufacture of the +cc, *orsche#design mini#

motorcycles.

Munjal !howa 3imited was formed in Technical and /inancial ollaboration with

!howa orporation, =apan, to design, develop and manufacture of front forks,

shock absorbers, struts and gas struts.

!unbeam 0uto 3imited has set#up a state of the art piston manufacturing facility in

technical collaboration with MJ! Hero /oundry ompany 3imited of =apan, the

pioneers in the world for manufacturing high#strength lightweight pistons used in

light, powerful fuel#efficient engines Munjal 0uto Industries 3imited has a joint

venture with the !tate#owned 5ujarat Industrial Investment orporation, to cater

to the needs of the overseas market.

Hero ycles - 4ivision was set up in consultation with M21, 0siaKs largest

engineering consultants and in Technical ollaboration with &ean 6nited, 6!0.

Hero ycles old -olling 4ivision has also entered into a technical collaboration

with "awasaki !teel orporation, =apan for the improvement of production yield,

elimination of defects, reduction of customer returns and enhancement of

maintenance operations against certain predetermined targets.


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:-ALIT1

Quality at Hero is attained not just by modern plants and eEuipment and through latest

technology, but by enforcing a strict discipline. 0t the 5roup factories, attaining

Euality standards is an everyday practice # a strictly pursued discipline. It comes from

an amalgamation of the latest technology with deep#rooted e@perience derived from

nearly four decades of hard labor.

It is an attitude that masters the challenge of growth and change # change in consumersK

perceptions about products and new aspirations arising from a new generation of

buyers. onformance to Euality at Hero begins on the shop floor. very worker ensures

at each stage of manufacturing that any of the faulty products are not allowed to go

through further manufacturing and distribution cycles.

Today Euality is ensured from steel processing to the finished product. ach

component goes through numerous tests at the stages of design, raw material

procurement and, of course, during the manufacturing process.

onstant technology up gradation ensures that the 5roup stays in the global

mainstream and maintains its competitive edge. &ith each of its foreign collaborations,

the 5roup goes onto strengthen its Euality measures as per the book. The 5roup also

employs the services of independent e@perts from around the world to assist in new

design and production processes.

1evertheless, in this race to acEuire the most modern techniEues and technologies and

to collaborate with the most advanced players in the market, the core competence

continues to be derived from the 5roupKs philosophy # To ngineer !atisfaction.


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0AR2ETIN; 0I< STRATE;1

*roduct Mi@

*roduct 8ariety Quality 4esign :rand 1ame &arranties !ervice /eatures

*rice Mi@

3ist *rice 4iscount 0llowances *ayments *eriods

redit Terms

*lace Mi@

hannels overage 0ssortments Inventory Transport

*romotion Mi@

!ales *romotion 0dvertising *ublic -elations 4irect Marketing


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0AR2ETIN; 0I

Standardised 0arketin! 0i?=

0n international marketing strategy for using basically the same product, advertising,

distribution channels 9 other elements of the marketing mi@ in all the countries of

companys international market.

Adapted 0arketin! 0i?=

0n international marketing strategy for adjusting the marketing mi@ elements to each

international target market, bearing more costs but hoping for a larger market share 9

return.

International Scenario0 two#wheeler is used as a personalJfamily vehicle or a goods carrier in the enveloping

countries, whereas it is confined to sportsJracing Fheavy motorcyclesG or short istance

shopping FmopedsG in developed countries.

The world two#wheeler market is dominated by =apan. =apanese manufacturers

account for around +? of the total two#wheeler production in the world. However,

production within =apan has been declining due to lower domestic demand and shift

in manufacturing base outside the country. =apan is also the worldKs largest e@porter of

two#wheelers in the world controlling around C+? of the world trade. Its major

markets are hina, 6!0 and urope. In terms of player positions, Hero Moto orp

orporation, 7amaha Motors and !u;uki Motors orporation share the top three slots

in the world two#wheeler market. The table below shows the production and sales

figures of motorcycles and scooters in =apan during the past decade More than +>? of

the production in =apan is e@ported out of the country. This scenario contrasts directly

with the Indian scenario. In India, only about %+? of the production in /7%% were

e@ported

The 0sian continent is the largest user of two#wheelers in the world. This is due to

poor road infrastructure and low per capita income, restrictive policy on car industry.

The technology for two#wheelers is not as well developed as for car industry. This is

due to oligopoly between top five players in the segment, compared to thirty

manufacturers in the car industry.


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PLACE0ENT OF 3ERO 0OTO CORP

Hero Moto orp 3imited sells the motorcycle through a widely spread all India networks of

over )+> of dealers. The motorcycle can be serviced at the authori;ed dealers or !!*s

F!pare and !ervice pointsG.

In the year %BB, Hero Moto orp was the first company to introduce Indias first chain of

automated services workshops. To e@pand the service network further to smaller towns, the

company has appointed !ervice e@tensions.

Hero Moto orp genuine spare parts are available from the dealers, !!*s and the stockiest.

The company provides good after sales service through its well#established dealer network.

The company has a policy of three !, !ingle ! for stockiest, 4ouble ! for services and three

!!! for sales.

The company is having about )> of !!!, which deals in !ales, !ervice, and !tock, '> of

!!, which deals in !ervice and !tock and %' of !, which e@clusively deals in stocks.

The 1etwork 0s 2n (%st March '>>' Is 0s 6nderD 4ealers F(sR#!ales, !ervice, !paresG#

)+A, !sps F' !#!ervice 0nd !paresG#'+, !tockiest F!ingle !#!paresG#%'

The company has developed a uniEue distribution network, which has given it a distinctive

competitive advantage. The whole idea behind establishing this vast distribution network is

to reach the customer even in the remote areas.

The company has segregated the areas as 6rban, -ural, and semi rural and has appointed

dealers in many of these areas, after seeing the potential. The companys major thrust is the

easy availability of all the models in every part of the country.

The companys bikes are sold through the dealers and they are reEuired to provide proper

infrastructure, &orkshops, /acilities, and trained *ersonals. The dealers are given targets

and they are reEuired to sell sufficient number of vehicles to earn a return on investments.

-egional offices are in constant touch with these dealers.

*resently the company is having A regional offices in the country. The regional offices

constantly assist these offices as a kind of linkage between the company and the dealer and

the dealers. The sales and the marketing personals at the regional offices are trained and

encourage maintaining a cordial relationship with various dealers on the basis of trust and

understanding. The companys service engineer and the other sales staff supervise all the

facilities at the dealer and the service outlet from planning the layout to the errection of the

specially designed benches and the tools. Infact all the possible efforts are made by the

company to make the dealers to become the part of the Hero family and its culture.


18/42

The company has appointed fleet of more than )>> trucks from around )+ transporters to

assist them in the delivery of vehicle. /rom the factory and within the factory premises, the

company has a good fleet of trucks and trailers. The company to deliver the vehicle to the

dealers showroom in the gactory fresh condition uses these trucks and trailers. The cargos

are loaded in the trucks and the trailers and they are delivered at the stockyards of the

dealers in whichever part of the country they may be located. !o the company in this way

delivers the motorbikes in the fresh factory conditions. :y the time the bike reaches our

dealers they might have done hardly a coupler of kilometers. The company believes the

marketing efforts should go beyond ensuring product availability.

The focus is therefore on a vast distribution network. In order to ensure the customers a

better Euality service at the various stations, the company mounts an effective training

porograme in which all the mechanic, supervisory staff and the other senior staff personnel

participate.

The company is also planning to set up some of the fully eEuipped e@press authori;ed

highway. In these highways, one would see a Hero Moto orp dealer every %+#'+

"M!.This concept is thought by the company with a view to provide good after sales

services to the customer. This e@ercise will also check the company to check the use of

spurious products, which ultimately spoil the bike. The highways to be covered in this

scheme areD

1& 43HI#5&03I2-

1& 43HI#H014I50-H

0M:030#364HI010

"23"0TT0#4H01:04

The company has a dream to increase this figure of )+A dealers to +> by the end of '>>(

and increase the figure of '+ service stations to (+> by the end of the year '>>(.The

company is going by an e@pansion process.

The company is perhaps the second company after Maruti 6dyog 3imited to implement a

factory fresh concept. The company is the only company in the two#wheeler segment

having so much of vast distribution network. Hero Moto orp will be adding '+ more

dealers and +>service stations to build a network of +C+ dealership#cum#service points

Fincluding )>> dealershipsG across the country.

The level of investment in an automated Hero Moto orp service station is e@pected to be

around -s %> lakh, apart from land and building. SS1o dealer has any problem in e@panding


19/42

business,KK says Tapan, Marketing manager. SS&eKve tied up with itibank and enturion to

provide bill discounting through our dealers. onsumer /inanceD In order to focus on

organi;ed consumer financing, Hero Moto orp tied up with Tata /inance a week ago. This

is Hero Moto orpKs second tie#up following enturion, which is accounting for around

(,>>> bikes a month through %>> dealerships.

0 thorough understanding of the fast#changing consumer behaviour, new market segments

and product opportunities along with sensitivity to changing customer needs, form the core

of HeroKs marketing strategy and philosophy. 0t Hero we essentially have a completely

customer#driven approach. 0 nation#wide dealer network comprising of over (,+>> bicycle

dealers, (+> dealers for mopeds and ''+ franchise holders for motorcycles, ensures

convenient access to the 5roupKs products across the country.

&ith a deep sense of belonging to the Hero fraternity, the 5roupKs dealer network has

catalysed growth and acted as a strong bridge between the customers and the 5roup.

onventionally, very few Indian bicycle manufacturers were interested in e@ports.

However, the Hero 5roupKs foray into the overseas markets pioneered Indian e@ports in the

bicycle segment as early as %B(. It was a move prompted primarily by the need to be

attuned to the global marketplace.

&hile initial e@ports were restricted to 0frica and the Middle ast, today more than +>

percent of the 5roupKs bicycle e@ports meet the demands of sophisticated markets in urope

and 0merica. This is primarily because of appropriate product development and e@cellent

Euality that Hero offers. The 5roup has undertaken a steady upgradation of technologies

and there has been diversifications and setting up of newer establishments to meet stringent

international standards. 0t the core of it all is a customer#centric scheme of policies and

production and the bottom line is to 0dd 8alue while ngineering !atisfaction.

PRO,-CT STRATE;IES OF 3ERO 0OTO CORP

Hero Hero 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 Moto orp 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 uro

emission norms. The new underlining theme for the company 2ne for everyoneN has led

to the launching of new products, which are as followsD

Street S@art=Hero Moto orp introduced its !treet !mart in %BBC. The company who

were more inclined towards the scooters and who thought that the scooters were more safer


20/42

than the motorcycles, thus Hero Moto orp decided to launch the !treet !mart. The bike

was built in such a way that it resembled more like a scooters, than a motorcycle, but

actually it is a motorbike. I.e. it is a hybridN

Product ,escription 3ERO 0OTO CORP Ltd

Hero Moto orp has launched the following motorbikes in the Indian market.

H-2 M2T2 2-* 4 %>>

H-2 M2T2 2-* 4 %>> !!

H-2 !3"

H-2 M2T2 2-* !plendor

H-2 M2T2 2-* !treet !mart

H-2 M2T2 2-* :

H-2 M2T2 2-* =oy

H-2 M2T2 2-* *assion

H-2 M2T2 2-* 0mbition

Hero Hero 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 Moto orp 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 uro emission norms. The new underlining theme for the company 2ne for

everyoneN has led to the launching of new products &ith the launch of new

motorbikes and various other motorbikes in the pipeline, Hero Moto orps strategy

is to get into these segments of the motorcycle market where they have not made in

roads earlier.


21/42

PRICIN; STRATE;IES OF 3ERO 0OTO CORP

The company has a policy to price its product very competitively. In todays world,

one cannot has a skimming pricing says Mr. Tapan, marketing manager, Hero Moto

orp. 1ecessarily the pricing policy is completely a blend of two strategies i.e.*enetration and !kimming. It has been the companys policy to provide the customers

with value for money#give more for less. &e are the only company in the two wheeler

segment that is in the process of passing on the whole benefit of cost advantage

achieved as a result of the increased locali;ation levels of upto >? to the customers.

&e are in the process of keeping our product increasing popular and affordable. The

company keeps telling its customers to think about Quality rather than price. /urther

if one talks about the changes in the price in the last three years, the prices have never

been changed e@cept the budgets e@cept once in 0*-I3 '>%%,when the company

started off with their celebration offerN, and thus decided to sanctioned a discount

and curtail on every Model -s %>>%U#. The company is surely in a business of

delivering Euality rather than price. /or instance the :o@er, which is of only 'B,BB>

and is the cheapest bike of the industry. The company gives importance to the Euality

rather than cheap products.

&ell Hero Moto orp has bikes at different price point but there is one common

thing that is they are priced at a premium of I1- '>>># (>>> from the competitors

and it seems their strategy is working fine with the target customers as it is the largest

seller of bikes in the Indian market with a market share of )A ? .ustomers are redy

to shell out the e@tra money because they believe and its fact that the fuel efficiency

of the bikes is much better than its competitors the different price points for Hero

Motors 3imited are D

10M *-I

4awn ################### (',>>>

!plendor ############### )%,>>>

*assion ################ )),>>>

b;##################### +',>>>#>,>>>

Thus we find that HM3 has bikes for every one for entry level customers they have

dawn which is a no frill attached product whose emphasis is on mileage with

performance .0nd for customers who like to have bike which is good at performance

and with descent looks they have !plendor which is their fastest selling bike and


22/42

account for half of the total sales. ustomers who are looking for style with

performance can go for *assion which is a huge success among the urban class as it is

priced little bit higher than splendor and the looks of the bike are astounding. /or

customers who want style and power they have : which is targeted towards the

premium segment and it was a runaway success initially but is not a hot seller now

due to some problems. Hero Moto orp is planning to introduce few more models in

years time in order to make their portfolio of products more versatile. They are trying

to introduce new models and they are trying to introduce models at the premium

segment as it has high margins and the company feels that its the segment which is

will grow in the near future as the income of people will increase with the change of

life styles .HM3 also intend to introduce few models which are economical in nature

as they this segment provides the volumes to the company. Hero Moto orp still

wants to charge a price of premium as its brand enjoys a high level of respectability

and reliability among the target customers as their products have already proved their

mettle in the market and enjoy high level of brand eEuity among the target customers.

Hero Moto orp has an advantage of large no of dealers and also economies of scale

which help them to absorb the costs to a great e@tent.

PRO0OTIONAL STRATE;IES OF 3ERO 0OTO CORP

3ero 0oto Corp rides sa6e

Hero Moto orpKs S-ide !afe and 5ood -iderK campaign is aimed at communicating

the philosophy of delivering safe products and promoting good driving for the overall

safety of the Hero Moto orp customer. reated by Mcann rickson, the ad## Hero

Moto orp cares for your safety##invited all Hero Moto orp owners to attend the

-ide !afe programme on 2ctober 'C, '>%% at 4elhiKs India 5ate lawns. This was the

first phase of the programme, where three instructors from =apan demonstrated

techniEues of right driving. In the second phase, Hero Moto orp will communicate

the launch of the )! concept Fsales, service, spare parts and safetyG at Hero Moto orp

dealerships. The focus of the third phase will be to promote the launch of the Hero

Moto orp !afety -iding *romotion !chool, which will have riding simulators and

safety riding tracks

Hero Hero will take the riding programme## where trained personnel will give riding

tips to bike owners## to over %>> dealerships across B> towns.

*romotion in this sector cannot be like that in the /ast Moving 0uto pats

F0utomobileG sector. The promotions in this sector are like >? finance schemes and


23/42

other sort of things. The company takes the services of many good and reputed

advertising agencies like -eddifuusion, 3intas, sachi 9 !achi and others.

The company has also signed a kind of agreement with two celebrities just now to be

their brand ambassadors. Hero Moto orp, a leading manufacturer of motorcycles,

has roped in film actor Hrithik -oshan and captain of Indian ricket team !ourav

5anguly as its brand ambassadors for three years till '>>(.

They would endorse the company products, attend corporate and brand events and

help promote its we care campaign comprising safety riding, environment, and

friendliness.

Hrithik and 5anguly said they were glad to be associated with Hero Moto orp. Hero

has embarked upon an ambitious project to achieve sale of one million bikes this year

with a market share of )C per cent. The turnover would be in e@cess of -s. (>>> crore.

In 2ctober alone, %,%',>>> motorcycles have been sold, ompared to ,>( units in

the corresponding period last year, the increase in sales is a phenomenal B per cent.

umulative sales jumped up by )%.+A per cent to +.C' lakhs units during 0pril#

2ctober as against ).>) lakh units in the same period last year.

0t Hero Moto orp , our goal is not only to sell the customer a bike, but also to help

him at every step of the way in making the correct riding decisions. 0ssisting him in

making the right judgments on the road, and helping him to choose the right helmet

and other riding eEuipment

0nd as bike handling reEuires know#how, skill, and rigorous mental conditioning, we

have put together certain safety tips and suggestions that will enhance the riding

comfort. 3ast but not the least, it is always important to remember # a good rider is a

safe rider.

Hero Moto orp is enhancing the 0dvertising 9*romotion budget by around (+ per

cent from -s )% crore in %BBB#'>>>. 0part from concentrating on mainstream

!plendor## the worldKs largest selling bike## and upscale : motorcycles, Hero Moto

orp has identified SSsoft areasKK like services and spares parts for the purpose of

intense communication. The creative account of Hero Moto orp rest with big names

like Hindustan Thompson 0ssociation, 3intas, !achi and !achi and so on. Hero Moto

orp is also planning a major campaign to re#launch the restyled step#thru !treet

!mart. &hile customer references## and not media strategy## are e@pected to support

the 4 brand sales, Hero Moto orp will look at social areas ## like civic issues,


24/42

association with 1on 5overnment 2rgani;ations, contribution to greener causes## for

corporate communications.

The corporate campaign will be largely complemented by on#ground initiatives under

the umbrella brand of SS&e areKK, incorporating activities in the arena of community

services, safety and services programmes, tree#plantations and environmental#friendly

projects.

In line with HeroKs worldwide, safety riding programme, this fiscal Hero Moto orp

Motors 3imited will take the riding programme## where trained personnel will give

riding tips to bike owners

SPORTS ENTERTAIN0ENT

In sports promotions, Hero Moto orp will stickto cricket Ffollowing title

sponsorship of the &orld up last year, it has signed a three#year contract for Hero#

Hero#!alve hallenger TrophyG andgolf Fit will continue with Hero#Hero Masters

5olfG.

Moreover, after a successful association with movies## last year it signed *yar Mein

"abhi "abhi starring 4ino M and Twinkle## Hero Moto orp is in theprocess of

identifying title sponsorships of youth#centric movies. !ays !obti, In terms of media

e@posure, we are looking at sports, moviesand news. 1iche channels are also worth

putting your money on.KK /or the:, this year it is planning to run commercials in

youth channels like MT8#(+ per centgrowth in spare parts revenue, which

accounted for -s %>> crore in %BBB#'>>>.In the new fiscal, Hero Moto orp is aiming

to take the sales of !plendor from)>,>>> a month to +>,>>> a month< : from ),+>>

a month to +,>>>< and a%>#%+ per cent growth in 4 and 4#!! brands up from

'+,>>> a month now. There#launched step#thru !treet !mart is e@pected to account for

around'+,>>>#(>,>>> in the first year.


25/42

CO0PETITORS OF 3ERO 0OTO CORP

BAJAJ

The :ajaj 5roup came into e@istence during the turmoil and the heady euphoria of

IndiaKs freedom struggle. =amnalal :ajaj, founder of the :ajaj 5roup, was a

confidante and disciple of Mahatma 5andhi, and was deeply involved in the effort for

freedom. The integrity, dedication, resourcefulness and determination to succeed

which are characteristic of the ompany today, are often traced back to its birth

during those long days of relentless devotion to a common cause.

"amalnayan, the eldest son of =amnalal :ajaj, succeeded his father in %B)', at the age

of twenty#seven. *utting the 1ation before business, he devoted himself to the latter

only after India achieved independence in %B)C. :ut when he did so, he put his heartand soul into it. &ithin a short while, he not only consolidated the 5roup, but also

diversified into various manufacturing activities, elevating the 5roup to the status it

enjoys till this day

-ahul :ajaj today heads the 5roup. He has been the hief @ecutive 2fficer of :ajaj

since %BA and is recogni;ed as one of the most outstanding business leaders in India.

0s dynamic and ambitious as his illustrious predecessors, he has been recogni;ed for

his achievements at various national and international forums. :ajaj is currently

IndiaKs largest two and three#wheeler manufacturer and one of the biggest in the

world. :ajaj has long left behind its annual turnover of -s.C' million F%BAG, to

currently register an impressive figure of -s.)'.% billion F6!V B( millionG.

T9s> Ltd=

They have a vision of being a highly profitable and socially responsible, leading

manufacturer of high value, environmentally friendly, lifetime personal transportation

products for customers in global markets and to provide fulfillment and prosperity for

employees, dealers and vendors

SuDuki

T8! !u;uki broke out of the bottoming formation with a rise in volume and went

into a major uptrend. The stock is well above its rising (> &M0 and its earlier

intermediate bottoms, and hence, the major trend of the stock is up. The relative

strength line for the stock has moved past its ;ero line, indicating that the stock is

outperforming the indices. Investors ust hold on to the long positions in the stock


26/42

while more long positions in the stock must be added after the ne@t intermediate

correction.

The intermediate trend of the stock is still up and investors will have to wait for some

more time before the stock actually goes into an intermediate downtrend. "eep a close

watch at the stock and investors holding the stock must continue to do so. Trading

volumes are less, and hence, investors must pick small Euantities.

L0L

3M3 is also in a major uptrend like the other stocks in this sector, as the stock moved

past its earlier intermediate top and its (> &M0 in the current intermediate rise. The

stock is still in an intermediate uptrend and is currently moving sideways. It could

drop into an intermediate downtrend on a close below %B. The breakout by the stock

was not accompanied by a rise in volume and this is not a very bullish sign. Thus,

investors must look at other stocks in this sector which are also in a major uptrend

and are more stronger. The relative strength line has moved above its ;ero line and

could fall back if the stock goes into an intermediate downtrend. Investors must

always pick up the strongest stocks in the strong sector, and hence, must avoid this

stock, even though it is in a major uptrend.

2INETIC 0OTORS

"inetic ngineering 3td., founded in the year %BC>, is the leading manufacturer and

e@porter of '#wheelers. :orn of the vision of the late !hri H. ". /irodia, "inetic

ngineering 3td., it has produced useful, heart # winning products for over two

decades. "3 manufactures a wide range of Mopeds, !cooters and Motorcycles that

are very popular in the country and are well recogni;ed for their fuel economy,

Euality and reliability.

"3 has ( manufacturing plants at 0hmednagar *itampur FIndoreG an 5oregaon

F*uneG with the capacity to manufacture ) lakh vehicles per year. Their well endowedtechnologically advanced manufacturing set up have enabled them to reach high

Euality standards. The company also e@ports these vehicles to countries like 6!0,

anada, !weden, 3atin 0merica, 4enmark and the Middle ast

0n agreement has recently been reached between 7amaha Motor o., 3td. F7MG

and its joint venture partner in India, scorts 3imited Fhairman and Managing

4irectorD Mr. -ajan 1anda. 3ocationD /aridabad, suburbs of 1ew 4elhiG under which

7M will acEuire all of the '? of the stock presently held by scorts 3imited in the


27/42

two companiesK motorcycle manufacturing and marketing joint venture, 7amaha

Motor scorts 3td. F7M3G.

The aims of this move to make 7amaha Motor scorts a %>>? 7M subsidiary are to

increase the overall speed of managerial and business decisions, to improve product

development capabilities and production efficiency, while also strengthening the

marketing organi;ation. *lans call for the change in the companyKs name and other

procedures to be completed by the end of =une.

ver since the establishment of the first technical assistance agreement between the

two companies in %BA+, 7M and scorts 3imited have built a cooperative

relationship dedicated to the manufacture and sales of 7amaha brand motorcycles in

an environment of growing motorcycle demand in the Indian market. In 1ovember of

%BB+, the two companies established the joint venture company scorts 7amaha

Motor 3imited, based on a +>#+> capital investment. In =une of '>>+, that investment

ratio was changed to C)? for 7M and '? for scorts 3imited and 7M assumed

managerial control of the company with the name being changed to 7M3 and

undertook numerous measures to build the companyKs motorcycle manufacturing and

marketing operations.

In addition to 7M acEuiring scortsK '? of 7M3 stock, the companyKs name will

be changed to 7amaha Motor India *rivate 3imited F7MIG and concerted efforts will

be made to heighten its competitiveness in the Indian market and promote the spread

of the 7amaha brand with target themes of developing products with greater appeal

and a distribution network that can respond more Euickly to user needs.

/urthermore, 7M will work to develop 7MI as an e@porter of business type

motorcycles to neighboring countries and other markets such as 0frica and 3atin

0merica, and also as a production base that can assume a variety of roles in 7amahaKs

global manufacturing network.

*resently, IndiaKs annual motorcycle demand has grown to e@ceed (.A million units,

which makes it the second largest market in the world, with steady growth is

anticipated for the future. 1ow that 7MI has become a %>>? 7M subsidiary, the

introduction of several new models is planned, and it is our goal to increase annual

production to (+>,>>> units in the fiscal year '>>+ and to ++>,>>> units by the fiscal

year '>%>.


28/42

S.OT ANAL1SIS= 3ERO>3ERO

STREN;T3

Technological support from Hero Motoorp.

The company has a deeply penetrateddealer network F)> including servicestationG

The company provides good after salesservice through its well#establisheddealer network.

The company enjoys a huge market shareand well established brands like!plendor, 4%>>, :, etc.F!plendor isworlds largest selling motorcycleG

.EA2NESS

Hero Moto orp depends on Hero fornew products and this is a big weaknessconsidering it from the post '>>+ point ofview. The reason being that the

technological tie#up between Hero Motoorpand Hero Moto orp will cease toe@ist.

@ports has never grown beyond )?

The company doesnKt have a productcatering to -s. '+,>>> # -s. (>,>>>segment.

The company imports about (%? of itsspares reEuirements. This makes the

company vulnerable to the importpolicies of the government. It alsoe@poses them to the e@change rate risk.

OPPORT-NIT1

The motorcycle segment is growing atthe rate of ((?, which provides a greatopportunity for the company to cash on.0lso it is e@periencing a shift in thecustomer preference from )#strokemobikes to '#stroke mobikes. This again

provides an e@cellent opportunity to

Hero Moto orp to leverage its marketshare and market leadership for sustained

profitability.

&eak competition in %'+ cc 9 '>>FOG ccsegment

T3REATS

The technical collaboration with Hero isvalid only till '>>+ and this is a seriousthreat as they have been dependant onHero for technology. 0lso Hero has setup its %>>? subsidiary in India, whichshall start producing motorcycles from'>>). This will further increase the

competition. Threats from hinese companies which

are going to launce Hi#Tech and 3owcost products

The company has plans to foray into thescooter segment, which can also be amajor threat for the future prospects ofthe company.


29/42

,ATA ANAL1SIS

/or finding the result of Marketing !trategy in purchase of motor bike we have to

go through the customers perception and attitude. 0s for e@ample age group,

house holds annual income and purchase. These things focus the Marketing Mi@.

Then we have to go in details of all factors of coaster of Marketing !trategy as

family, gender, geographic location, social, cultural, income age, se@ etc.

consumer behaviour are Euite different their prepurchase, purchase decision and

post purchase behaviour. /or different product consumer behaves in different way.

/or buying the motel motor bike consumer prefer look robustness, Mileage and

comfortable. :rand image of the products is very important. /inding through the

consumer survey through Euestionnaire as follows. 0ppro@imately >? user are between the age group of %A to '+, then '+#(+.

thus mostly the young prefer to riding the bike generation.

Most of the customer are in the annual income group >,>>> to % lakh. It

means high income group mostly preferred four wheeler.

Most of the customer between the age group of '+ to (+ use bike office going

purpose and %A to '+ for college going or maintain their fined circle

:rand of the product most affect the behaviour of the consumer.

ustomer known about the brand mostly through T.8. and word of month.

*rice a not effect the consumer it the Euality, availability and after sales

services are good.

In case of decision making friends, parents players an important role.

onsumer buying decision affected by physical feature and technological

feature of the bike.


30/42

" 0OTOR BI2E -SERS A;E ;RO-P

A;E PERCENTA;E

%)#%A '>

%A#'+ >

'+#(+ %+0:28 (+ +

20%

60%

15%5%

14-18

18-25

25-35

Above 35

# P-RPOSE OF P-RC3ASE OF BI2E

2//I 52I15 (B?

2335 52I15 '+?

M0I1T0I1! /-I14! %)?

2TH- *6-*2! ''?

39%

25%

14%

22%

Office going

College going

Maintains Friens

Ot!er "#r"ose


31/42

$ 0AR2ET S3ARE OF BI2E

H-2 M2T2 2-* )>?

:0=0= ('?

!66"I %'?

70M0H0 %%?2TH-! +?

40%

32%

12%

11%5%

$ero $ona

a&a&

'#(#)i

*a+a!a

Ot!ers

% BRAN, A.ARENESS 0E,I-0

T8 (A?

1&!*0*- '+?

&2-4 2/ M26TH '(?

403- //2-T B?

2TH-! +?

38%

25%

23%

9%5%

,-

.e/s"a"er

or of +o#t!

ealer effort

Ot!ers


32/42

& P-RC3ASE INFL-ENCER

Q603IT7 9 /0T6- 2/ *-246T %+?

*-I %>?

0! 2/ 080I30:I3IT7 %+?

:-014 IM05 2/ TH *-246T ')?0/T- !03! !-8I ('?

8036 2/ M217 )?

15%

10%

15%

24%

4%

#alit feat#re of "ro#ct

rice

ase of availabilit

ran i+age of t!e

"ro#ctAfter sales service

al#e of +one

' P31SICAL FEAT-RES T3AT EFFECTS 0OST

322"! (+?

:247 :6I34! '+?

!T73 ''?-2:6!T1!! %A?

35%

25%

22%

18%

7oo)s

o b#ils

'tle

ob#stness


33/42

( PA10ENT 0O,E FOR P-RC3ASES

21 TIM *07M1T %+?

/I101I03 2*TI21 +?

H015 2//- %'?

2TH-! A?

15%

65%

12%8%

One ti+e "a+ent

Financial o"tion

c!ange offer

Ot!ers

) TEC3NOLO;ICAL FEAT-RES EFFECT B-1IN;

*2&- # 212M7 M24 ''?

MI305 )A?

/26- !T-2" 15I1 %A?

2TH- %'?

22%

48%

18%

12%

o/er - econo+ +oe

Mileage

Fo#r stro)e engine

Ot!er


34/42

* P-RC3ASE 0A,E FRO0

06TH2-I4 403- )C?

10- :7 403- ((?

213I1 %(?

2TH- C?

"+ BETTER AFTER SALES SER9ICE BRAN,

:0=0= 03I:- %A?

*0!!I21 ')?

T8! 8IT2- 'A?

0M:ITI21 '+?

2TH-! B?


35/42

22%

15%

2:%

29%

:%

Caliber

#lsar

assion

A+bition

Ot!er

"" BI2E PREFER IN F-T-RE P-RC3ASE

03I:- ''?

*63!0- %+?

*0!!I21 'C?

0M:ITI21 'B?2TH- C?

3ero 0oto Corp sales up $%

Hero Moto orp on Thursday reported a () per cent rise in sales in May at (.>( lakhunits as against '.' lakh units in the same month last year. The sales in the domestic

market stood at ',B(,C+A units during May this year, while e@ports stood at B,B>A

units sales increased due to e@port and company is going globaly


36/42

CONCL-SION

The motorcycle industry had a perceptible shift from a buyer market to the seller

market with the variety of choices. 1ow the customer even has a plethora of choices

to choose the best#suited reEuirement. 0ll the players, weather be it HM3, 7amaha or

any other will have to compete on the basis of many things like attributes, reliability

and so on. There is no doubt in the fact that Hero Moto orp ompany rules the

motorcycle industry and has a good brand name, but the company will certainly have

to initiate some efforts. The company has then highest market share in the motorcycle

industry and maintaining such a good share will pose a challenge to the company. The

company is doing very well in the business. 0ccording to me, no other company can

beat this company in the years to come because of its strong brand name in themarket. This company would be successful in the years to come as the company has

good amount of brand loyal customers. &hen there is talk of bike, the first thing that

comes to mind is Hero Moto orp because of strong brand image. In our study the

main emphasis was towards the marketing mi@ elements F*roduct, *lace, *rice and

*romotionG. The analysis is totally based on the marketing mi@ elements. /urther for

analy;ing the market share of the company properly< a survey was conducted which

also forms a part of the findings.

The two#wheelers market has had a perceptible shift from a buyers market to a sellers

market with a variety of choices. *layers will have to compete on various fronts vi;

pricing, technology, product design, productivity, after sale service, marketing and

distribution. In the short term, market shares of individual manufacturers are going to

be sensitive to capacity, product acceptance, pricing and competitive pressures from

other manufacturers

The segments, motorcycles have witnessed capacity additions in the last one#year and

it will continue in the upcoming period as and when Hero opens a local subsidiary.

2ver this period, only the motorcycle segment is e@pected witness higher demand vis#

$#vis supply, while the scooters and mopeds supply will outstrip demand.

0s incomes grow and people feel the need to own a private means of transport, sales

of two#wheelers will rise. *enetration is e@pected to increase to appro@imately to

more than'+? by '>%>.


37/42

S-;;ESTION

%. *ublicity and advertisement should be broad, because competition is more.

'. !i;e and weight of bike should be match with their ..

(. company should follow world wide strategies for increasing their globalrevenue.

). :ike should have stepping facility. &hich may help during critical situation.

+. ompany should provide promotional schemes to the customers.

. 0ll the protective parts of wheels should made of plastic and leg guard also be

strong.

C. 1ow ompany is reEuired to recover the faith of customers towards the brand

image.

A. ompany should improve the mileage of the :ikes.

B. *rices of the :ike must be set as it can be approved by major part of the

population.

%>. /uel tank portion can be changed.


38/42

LI0ITATIONS

Time was limited.

Material on internet is very limited.

/oreign data is not available on website of

Hero Motocorp.

:ikes are e@porting to very limited country.


39/42

F-T-RE PROSPECTS

F-T-RE

Hero Moto orp Is planning to launch bikes at a super *remium ranges i.e. A>,>>>

I1- just in order to show the technical e@pertise of the company in front of its

customers. &ith competitors already in this segment 3ike :ajaj liminator we can

accept 0 cruiser bikes from them in this segment. In addition, the firm is also in the

process of assessing the feasibility of introducing high#powered models from the

Hero stables as fully#built imported bikes. This is the first time after the major

debacle of :M&Ks )+cc bike that the Hero group is now planning a foray into the

lifestyle bike segment. :M&, in alliance with Hero Moto orp, had introduced the

premium bike at -s ).+ lakh. :ut an embarrassingly low demand saw the firm

trimming its tag to -s %.A lakh. In addition, the firm is also planning to launch a new

volume bike, to be produced with an engine capacity between %>>cc and %+cc, by

!eptember '>>', Munjal said while unveiling its new basic %>>cc bike 4awn. *riced

at -s (C,A++ Fe@# showroom 4elhiG, 4awn would replace its e@isting %>>cc

motorcycle =oy, which was launched last year. The firm has also phased out its %>>cc

bike !leek citing low volumes.


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REFERENCE BIBLIO;RAP31

%. *hillip 3itler Marketing managementN F*rentice#Hall of India *vt.G.

'. Harper &. :ayd, -alph &est /all, and !tanley /. !tasch Marketing research

F0IT:! *ublisher Cthed. '>>%G.

(. 0.5. !awyer and 4avied = Howard, =ournal of Marketing research %BBB.

). consumer :ehaviour by 3eon 5. !chiffman and 3eslie 3a;ar "anuk F/ifth

editionG

+. -esearch Methodology by .-. "othari F!econd ditionG

. :usiness world and :usiness India maga;ine.

C. 0uto India Maga;ine for two and four wheeler.

INTERNEThttpDJJencyclopedia.thefreedictionary.comJHeroOHero

httpDJJwww.heroHero.comJcoRpolicy.htm

httpDJJwww.heroHero.comJcoRboardRdirectors.htm

httpDJJwww.cmsnl.comJnewsJHero#to#strengthen#structure#of#its#rd#

operationsRnews')+.html

httpDJJwww.etalkindia.comJindianRautomobilesRnewsRforumsJnewRvariantRofRheroR

HeroRbikesRlaunchedglamourRfiRandRcdRdelu@#t(((.>.htmlhttpDJJwww.cmsnl.comJsearch.php

wwwWheromotorcycle.comwebsite of Hero Moto orp bike.

wwwWtvsu;uki.comwebsite of !u;uki motor bike.

nvswaminathanWbajajauto,com.
http://encyclopedia.thefreedictionary.com/Hero+Hondahttp://www.herohonda.com/co_policy.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rd-operations_news245.htmlhttp://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rd-operations_news245.htmlhttp://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of_hero_honda_bikes_launchedglamour_fi_and_cd_delux-t3336.0.htmlhttp://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of_hero_honda_bikes_launchedglamour_fi_and_cd_delux-t3336.0.htmlhttp://www.cmsnl.com/search.phpmailto:[email protected]:[email protected]:nvswaminathan@bajajauto,comhttp://encyclopedia.thefreedictionary.com/Hero+Hondahttp://www.herohonda.com/co_policy.htmhttp://www.herohonda.com/co_board_directors.htmhttp://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rd-operations_news245.htmlhttp://www.cmsnl.com/news/honda-to-strengthen-structure-of-its-rd-operations_news245.htmlhttp://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of_hero_honda_bikes_launchedglamour_fi_and_cd_delux-t3336.0.htmlhttp://www.etalkindia.com/indian_automobiles_news_forums/new_variant_of_hero_honda_bikes_launchedglamour_fi_and_cd_delux-t3336.0.htmlhttp://www.cmsnl.com/search.phpmailto:[email protected]:[email protected]:nvswaminathan@bajajauto,com


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RESEARCH METHODOLOGY

The system of collecting data for research projects is

known as research methodology. The data may becollected for either theoretical or practical research for

eample management research may be strategically

conceptuali!ed along with operational planning methods

and change management.

Some important factors in research methodology include

validity of research data" #thics and the reliability of

measures most of your work is finished by the time you

finish the analysis of your data.

$ormulating of research %uestions along with sampling

weather probable or non probable is followed by

measurement that includes surveys and scaling. This isfollowed by research design" which may be either

eperimental or %uasi&eperimental. The last two stages

are data analysis and finally writing the research paper"

which is organi!ed carefully into graphs and tables so that

only important relevant data is shown.

Research Design

Primary Data

Primary research consists in research to collect

original primary data. 't is often undertaken after the

researcher has gained some insight into the issue by

collecting secondary data. This can be through
https://www.tutorsindia.com/research-methodology-help.htmlhttps://www.tutorsindia.com/https://www.tutorsindia.com/research-methodology-help.htmlhttps://www.tutorsindia.com/


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numerous forms" including direct observation and

telephone interviews amongst others.

The term primary research is widely used in

academic research" market researchand competitive

intelligence.

Secn!ary Data"

Secondary data will consists of annual report" audited

financial statement of the particular year. (hich will

obtained from the company website

www.heromotocorp.in.

Meth!#gy"

The li%uidity ratio and element of li%uidity ratio will

be analy!ed with the help of formulas for two years

of Hero Moto Corp which is collected from annual

report of the company.

8esearc! esigns;-

Research Ty$e " #ploratory

Data C##ectin Meth! " Primary )

Secondary

Ven%e " Sagar
http://en.wikipedia.org/wiki/Academic_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://www.heromotocorp.in/http://en.wikipedia.org/wiki/Academic_researchhttp://en.wikipedia.org/wiki/Market_researchhttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://en.wikipedia.org/wiki/Competitive_intelligencehttp://www.heromotocorp.in/

Marketing Strategy in Hero Moto Corp1

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