Summer Training Proj. Hero Honda by Sahil Nagpal

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Transcript of Summer Training Proj. Hero Honda by Sahil Nagpal

CHAPTER 1 INTRODUCTIONIn the current scenario, many dramatic changes are taking place in automobile industry in specific to Motorbike Industry. From the sponsorships of cricket matches to advertising through the conventional media, every company is launching new models and striving to capture more and more market share. So far the market leader have been Hero Honda and it has tried to project its brands in a very different manner. As the Indian 2-wheeler industry is growing in double-digit figures in the last couple of years, which is due to the rising income levels, continuing poor public transport system, and declining interest rates, wider availability of finance, decreasing product life cycles and increasing percentage of young population. The last few years have seen a fundamental shift in preference from scooters and mopeds towards motorcycles. Motorcycle sales have grown at a compounded annual growth rate (CAGR) of 27% for the last 6 years, while the Two Wheeler industry have grown at a CAGR of 11% over the same period. In the year 02-03, motorcycle sales have grown at 30% vs. 17% for two-wheelers. Hero Honda has been one the companies spending huge amount in advertising and sponsorships of events, it has been successful in creating a differentiated image. So all this prompted me to undertake this project in the direction of Finding gap between consumer perception and brand positioning of Hero Honda motorbikes in India. This study is descriptive in nature and has been undertaken through survey method with structured questionnaire method as data collection instrument. It brings out some of the interesting findings as: Hiring too many brand ambassadors does not serve any purpose, rather it makes it complex for consumers to remember brand ambassadors and associate with it bikes. Given the choice respondents in associating bikes with punch lines, respondents have shown a gap in remembering the punch lines of bikes. The best shown in remembering punch line of Desh Ki Dhadkan, whose maximum response is 97%.

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BRANDA brand is a name, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. In essence, a brand identifies the seller or maker. It can be a name, trademark, logo, or other symbol. Under trademark law, the seller is granted exclusive rights to the use of the brand name in perpetuity. Thus brands differ from other assets such as patents and copyrights, which have expiration dates. A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits, and services to the buyers. The best brands convey a warranty of quality. Brand conveys up to 6 levels of meaning: 1. ATTRIBUTES 2. BENEFITS 3. VALUES 4. CULTURE 5. PERSONALITY 6. USER Marketers must decide at which level(s) to anchor the brands identity. The most enduring of a brand are the values, culture and personality. They define the brands essence.

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BRAND POSITIONINGIn todays, highly competitive environment, a distinctive image is most important. In todays scenario Brand Positioning and Market Segmentation have become the hallmarks of market research. The core thought behind Brand Positioning is the idea that each Brand occupies a particular point or space in the individuals mind, a point which is determined by the consumers perception of the brand in question and in its relation to other brands. In marketing terms, there is no such thing as a product or service that exists in space, independent of the consumer. The product must find a place in the individual consumers perception of the world around him. This perceived image of the brand belongs not to the product rather is the property of the consumers mental perceptions. So creating the particular desired perception and occupying a particular point or space in the target consumers mind is the essence of the positioning or repositioning strategies. This perception is based on the brands functional attributes of benefits as well as on the non functional or emotional associations. perceive the same brand in different ways. The 4 basic concepts of positioning are:1. 2. 3. 4. Product class or the structure of the market in which ones brand competes. Consumer segmentation. Consumer perception of ones brand in relation to the competitors. The benefits offered by the brand. It is colored by target consumers own attributes, beliefs, and experiences, thus leading to the fact that different segments may

These 4 components must be taken together while considering the positioning of the brand.

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CONSUMER PERCEPTIONConsumer perception is a process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception is the image created in the mind of consumers about anything whether the marketer want to create that image or not through marketing campaigns. Perception depends not only on the physical stimuli but also on the stimulis relation to the surrounding field and on conditions within the individual. Why do people perceive the same situation differently? People can emerge with

different perceptions of the same object because of three perceptual processes: selective attention, selective distortions, and selective retention. As a result, people may not necessarily see or hear the message that marketers want to send. marketing campaigns. Marketers must therefore be careful to take these perceptual processes into account in designing their

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CHAPTER 2 INDUSTRY PROFILE

With the motorcycle market expected to grow at around 20 per cent in 2003-2004 as compared to the growth of 16-17 per cent which the industry averaged during the past five years, manufacturers are pulling out all stops to address the top end segments of the industry. The fight to dominate the premium motorcycle segment has reached epic proportions between Pune based Bajaj Auto Limited and Delhi based Hero Honda Limited. The reason is obvious; the market penetration of motorcycles is very low in India as compared to scooters. But growing urbanization and rising ease of ownership and a high-income group has seen more and more young people purchasing high-end motorcycles. With the entry and economy level segments reaching saturation point, manufacturers are now targeting the high-end segment - the executive and premium segment. In 2002-2003, of the 3,03,792 motorcycles, nearly 55 per cent of all motorcycles sold were in the executive segment and Hero Honda continued to dominate this segment with a market share of nearly 64 per cent. So it is not surprising that Hero Honda has taken the lead with the launch of their 223 cc motorcycle Karizma priced at Rs 79,000. According to Brij Mohan Lal, chairman Hero Honda, Talks are on with joint venture partner Honda Motors of Japan for the next generation engines and we are also planning some more powerful bikes and are investing Rs 100 crore in this project. Bajaj Auto has discovered the goldmine in the executive segment, through the success of its executive category the Pulsar which within a short span of time, has achieved sales of around 15,000 units per month.

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Realizing the potential in this segment, Bajaj Auto is planning a global motorcycle in collaboration with Kawasaki of Japan. According to Rajiv Bajaj, joint managing director Bajaj Auto, The purpose behind this bike is to use as many components as possible that could be easily available everywhere by virtue of it being a world bike. While pricing is still to be determined the 125 cc global bike is all set to launch in July." According to Bajaj, The 125cc world bike is expected to give company to Caliber-115 in the executive segment and this will be further supplemented by another bike to be introduced in the last quarter of the current fiscal. But with the first lap gone to Hero Honda, will Bajaj take pole position remains to be seen.

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CHAPTER 3 COMPANY PROFILE

ABOUT HERO HONDAWhat started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two-wheeler Company. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels made even more famous by the 'Fill it - Shut it - Forget it' campaign. Driven by the trust of over 5 million customers, the Hero Honda product range today commands a market share of 48% making it a veritable giant in the industry.

SOCIAL OBLIGATIONS

ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the way in making your world a better place to live in. Besides its will to provide a highquality service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise respectful of its environment and respectful of the important issues. Hero Honda has been strongly committed not only to environmental conservation programmes but also expresses the increasingly inseparable balance between the economic concerns and the environmental and social issues faced by a business: businesses must not grow at the expense of mankind and man's future but rather must serve mankind. "We must do something for the community from whose land we generate our wealth." A famous quote of Mr.Brijmohan Lall Munjal, CMD, Hero Honda.

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MILESTONESYEAR 2003 EVENT Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 IndianCompanies) Most Respected Company in Automobile Sector byBusiness World Bike Maker of the Year by Overdrive Magazine 2002 Bike Maker of the Year by Overdrive Magazine Winner of the Review 200 - Asia's Leading Companies Award (4th Rank amongst top 10 Ind