Project on hero motocorp

7/21/2019 Project on hero motocorp

1/14

A PROJECT ON Hero Motocorp

Submitted to Submitted by :-

T.GHOSAL Abhishek kumar

CUJ I 2012 MBA O3

VI SEMESTER


2/14

PROJECT OBJECTIVE

To know:-

1. About the motorcycle industry

2. Market analysis

3. Key growth drivers

4. Segmentation

5.

Positioning

6.

Strategic Branding

7. Product Market Analysis

8. Marketing strategy (w.r.t. the elements of the Marketing Mix)


3/14

ABOUT THE MOTORCYCLE INDUSTRY

India is the largest producer of two wheelers in the world. Two wheeler consist

of three segments:

Motorcycle

Moped

Scooter

The two wheeler segment growth rate is 12.9% and sales is nearly 13.5 million

units in October 2014. The industry is expected to grow by 9% to reach 23

million units by 2016-17.

Market share in different categories:-

DIFFERENT MOTORCYCLE COMPANY

Hero Motorcorp

Bajaj

Honda

TVS

Yamaha

65%

28%

7%

MARKET SHARE

Motorcycle Scooter moped


4/14

BRIEF PROFILE OF HERO MOTOCORP LTD

Hero MotoCorp Ltd. formerly Hero Honda is an Indian motorcycle and scooter

manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venturebetween Hero Cycles of India and Honda of Japan. The company is the largest two

wheeler manufacturer in India. In 2010, When Honda decided to move out of the joint

venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011

the company was renamed Hero MotoCorp with a new corporate identity. Product range

of Hero MotoCorp are:

DIFFERENT MODELS OF HERO MOTOCORP ARE:

HF down

HF deluxe

HF deluxe ECO

splendor plus

splendor pro CLASSIC

splendor Ismart

passion pro TR

splendor NXG Super splendor

splendor pro

passion pro

passion Xpro

Achiever

Glamour

Glamour PROGRAMMED FI

Xtreme

Xtreme SPORTS

Impulse

Hunk

ignitor

karizma

karizma ZMR


5/14

MARKET ANALYSIS

COMPETITION ANALYSIS: -Hero motorcycle is leading with 52 percent market

share, whereas Bajaj auto share is 20.2%. Honda market share is 15.6% and others

have 12.2% market share.

52%

20.2%

15.6%

12.2%

MARKET SHARE OF MOTORCYCLES

heromotocorp bajaj honda others


6/14

SWOT ANALYSIS: - It includes

1. internal factorsthestrengthsand weaknessesinternal to the organization

2. external factorsthe opportunitiesand threatspresented by the environment

external to the organization

SWOT Analysis

Strength

1. Huge brand equity and one of the biggest players in the two wheelers Indian

market2. Excellent R&D, and wide variety of products in every segment

3. Excellent distribution, over 6000 dealerships and service centers

4. Good advertising and excellent rebranding from Hero Honda to Hero Moto

Corp

5. Newly Electronic Fuel Injection System(EFI System)

Weakness

1. Absence in the cruiser bike segment

2.High imports for its spare parts i.e. over 30% imports

3. Joint venture of hero and Honda has been broken.

Opportunity

1.Two-wheeler segment is one of the most growing industries

2.Export of bikes is limited i.e. untapped international markets

Threats

1. Strong competition from Indian as well as international brands

2. Honda can be a big threat for hero

3. Better public transport will affect two-wheeler sales


7/14

KEY GROWTH DRIVER

Multiple factor has contributed to the growth in demand of two wheeler. The growth

is primarily because of the following factors.

Economic development: The Indian economy recorded an impressive growth of

6.9%in the fiscal year 2013-14, and also sharp decline in international crude-oil price.

An overall economy prospers, there is, naturally more demand for personal

transportation vehicle. This has resulted in increased demand for motorcycle that are

now most popular and affordable means of personal transportation.

Improving infrastructure: The national highway programs by union government to

create a better infrastructure to transfer the economy in a significant manner. This

factor has boosted the sale of motorcycle due to better road condition.

Increasing urbanization and inadequatepublic transportation system, especially in

the semi urban areas, create a greater need for personal vehicle.

Changing demographic profile:In India large number of younger age people are

now living. Also size of middle class population is also increasing. These trend areleading to increased demand for two wheeler vehicles.

Growth in rural market: successive good monsoons has increased the purchasing

power of rural market.The rural consumer are today more keen to poses a two

wheeler instead of an ordinary bicycle. Moreover, some of the two wheeler companies

have taken special initiatives total the growing economic power of the rural market in

India.

Other favourable condition: factors like expansion in city and higher mobility of the

Indian population, increased availability of more fuel efficient and low maintenancecost models motorcycle contributed to steady growth in demand for two wheelers.


8/14

Market Segmentation

Hero MotoCorp caters to a wide consumer base. It has segmented its market based on

income and age. It caters to youth of all income groups. Its highest selling bike Splendor

is a favorite in sub urban and rural India. It portray itself as the most efficient bike range

to cater to Indian Roads.

The present hero motocorp market in India can be classified into for broad

segment on the basis of price.

Segment Price Brand

Standard Rs 35000 to 45000 HF down, HF deluxe, splendor plus

splendor NXG

Executive Rs 45000 to 60000 Super splendor, splendor pro,

passion pro, achiever, glamour,

splendor Ismart

premium Rs 60000 to 75000 Xtreme, impulse, hunk, glamour

PGM, ignitor

Super premium Rs 75000 to 100000 karizma

Standard segment: standard segment is known as entry level motorcycle which

contain range from Rs 35000 to 45000.

The typical profile of the consumer belonging

to this segment is a single newly employed working professional or newly married

people who use the bike to commute small distance. This class of vehicles or segment

is most popular in the semi urban and rural area. The common consumers expectation

are that of affordability, reliability and low maintenance costs.

Executive segment: these bike are priced in the range of Rs 45000 to 60000.

All these brand of motorcycle are characterized by

style, performance, fuel efficiency and affordability. The typical consumer profile is

that a student or a working professional. The consumer expectoration are that of

comfort, fuel cost initial price, low maintenance cost and efficient performance.


9/14

Premium segment: these bike are priced in the range of Rs 60000 to 75000.

The brand in this segment are characterized by good looks,

high power and speed, smooth handling and a certain aspiration value. The typical

owner of these bikes are young men. Their main expectation are superior performance

as well as fuel efficient motorcycles.

Super premium segment: the heromotocorp has karizma in this segment. The

motorcycle is generally characterized by sporty looks, high speed and power. The

consumer expectation are that of fast, elegantly designed motorcycles.

Target Market

Hero MotoCorp follows selective specialization. It has a wide range of bikes from Rs

38,000 to Rs 103000. Each product has multiple optional features. The USP that it uses

are: strong, sturdy and powerful, greater mileage, low maintenance cost, safe to ride,

ease and comfort. Its target market includes lower middle class consumer to upper

middle class consumer. It is affordable, available and acceptable by all.

Tiger woods is the first Global Corporate Partner in a four-year deal

that targets capturing newmarkets in North America and Europe

Positioning

F il l i t. Shut i t. Forget it Campaign

This campaign focused on the mileage of Hero

bikes. It says that once you fill oil in the bikes

tank, you are tension free. Due to its higher mileage,

you can travel as much as you want without bothering

to refill oil.


10/14

Dhak dhak go Adver tisement campaign

Dhak dhak refers to the heart beat. Therefore this

campaign showed that if you are riding a Hero

bike you are listening to your heart. This

campaign connects emotionally to the consumer

as it shows the connection of bikes to the heart

of every Indian.

Desh ki Dharkan Advertisement Campaign

Desh ki dharkan refers to the heart beat of the

country. It symbolizes that all people in India

are emotionally attached to their country. Even

though there are a lot of cultural differences but

the entire country stands as one. This campaign

places Hero bikes as the heart beat of the entire

nation uniting everyone as a nation.

Event sponsorships

Event sponsorships of Indian super league 2014 is

a positioning strategy as football has a huge fan

base in India. It positions itself as a strong, reliable,

affordable and greater mileage bikes.


11/14

Celebri ty endorsements

Various celebrity endorsements are used as their

Positioning technique.

In one of the biggest brand endorsements for any

Indian company, Hero MotoCorp ropedin

14-time major champion Tiger Woods asits

first Global Corporate Partner in Dec 2014.Also, signed on Indian

hockey captain Sardar Singh and Bollywood actor Alia Bhatt as new brand ambassadors

Hum me hai hero campaign

This advertisement tries to prove that we all are born super stars. We just need to focus

and believe in ourselves. There is nothing impossible in this world and there is nothing

that cant be achieved. Through perseverance we can reach great heights and achieve

whatever we want. We just need to believe firmly that we are a hero.

Strategic Branding

Hero motocorp is world's largest two-wheeler manufacturer but still considered only a

domestic player. Joining hands with Woods in a four-year deal of Rs 200 crore isclearly a move to create a space at global level. It the most expensive celebrity

endorsement yet for an Indian company.

"Tiger Woods is one of the biggest global icons and not just a sports celebrity. His

appeal cuts across geographies, nationalities, age and gender and therefore, he is the

best brand fit to be our 'Global Corporate Partner' as we go global," said by pawan

munjal MD and CEO of hero motocorp.


12/14

Product Market Analysis

BCG Matrix: -

BCG Matrix: It is based on the observation that the hero motocorp company unit can be

classified into four categories based on combination of market share and market growth

relative to the competitor. It divided into four part.

1. Star: - In this category product have high market share and high market growth.

Hero motocorp have splender series, passion series and karizma in this category.

2. Cash cow: - In this category product have high market share and low market

growth. Hero motocorp have HF Dawn and HF Deluxe in this category.3. Question mark: - In this category product have low market share and high market

growth. Hero motocorp have hunk, xtreme, glamour in this category.

4. Dog: - In this category product have low market share and low market growth.

Hero motocorp have achiever, impulse, Ignitor in this category.

splender

seriespassion series

karizma

hunk

xtreme

glamour

HF Dawn

HF Deluxe

achiever

impulse

ignitor


13/14

ANSOFF MATRIX: -

The Ansoff Matrix, designed by Igor Ansoff, classifies and explains different growth

strategies for a company. This matrix is used by companies which have a growth

target. This is a tool which consist of two axis products and markets of a company that

facilitates decision-making.

The Ansoff matrix offers four strategies to achieve the objectives:

1. Market Penetration: - For existing products and existing markets, Hero can

penetrate into market with Value delivering pricing & Finance options, After-

sales services increased visibility & marketing Value deals Focus on rural

segment by driving through make shift showroom to gain visibility. These

strategies will help hero penetrate more into the market.

2. Market Development: -In strategy, a firm tries to expand into new markets

(geographies, countries etc.) using its existing offerings. Hero is focusing onmarkets of North America and Europe.

3. Product Development: -In strategy, a company tries to create new products and

services targeted at its existing markets to achieve growth. Hero can focus onthis segment to achieve this strategy i.e. Skate bikes, Bikes for women, Eco-

friendly bikes.

4.

Diversification: -In an organization tries to grow their market share by

introducing new offerings in new markets. It is the most risky strategy because

both product and market development is required. Hero can grow in newmarkets with new products by diversifying by brand extension like 4 wheelers.


14/14

Marketing strategy

Marketing mix- The marketing mix is a business tool used in marketing and by

marketers. It consists of

1. Product: - Product could be classified on basis on engine capacity

97.2 cc - It includes product like HF DOWN, HF DELUXE, HF DELUXE

ECO, SPLENDOR PLUS, SPLENDOR PRO CLASSIC, SPLENDOR

ISMART, PASSION PRO TR, SPLENDOR PRO, PASSION PRO.

109.1 cc - PASSION XPRO

124.7 cc - SUPER SPLENDOR, GLAMOUR, GLAMOUR

PROGRAMMED FI, IGNITOR

149.2 ccACHIEVER, XTREME , XTREME SPORTS, IMPULSE,

HUNK

223 ccKARIZMA, KARIZMA ZMR

2. Price: -Hero MotoCorp offers wide range of two wheeler products that include from low

cost bikes to high end bikes ranging from 38,000 to 103,000.

3. Place: -Hero MotoCorp two wheelers are manufactured at Gurgaon and

Dharuhera which are located in the state of Haryana in northern India. The

third and the latest manufacturing plant is based at Haridwar, in the hill state of

Uttrakhand. Hero MotoCorps extensive sales and service network now spans

over to 6000 customer touch points. These comprise a mix of authorized

dealerships, service & spare parts outlets, and dealer-appointed outlets across

the country.

4. Promotion: -Hero motocorp uses celebrity endorsement with the corporate

business partner tiger woods, and with brand ambassador Sardar Singh captain

of Indian cricket hockey team. Hero uses campaign like hum me hai hero. Hero

also uses event sponsor as a medium of promotion.

Project on hero motocorp

Documents

Transcript of Project on hero motocorp