HERO HONDA MOTORS LTD , INDIA

Hum Mein Hai

Hero

 The two-wheeler industry has been in existence in the

country since 1955.

The main key players who are dealing in this sector are

Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India

 Hero Honda Motors Limited, based in Delhi, is the world's

Largest manufacturer of motorcycles .

A joint venture that began in 1984 between the Hero

Group of India and Honda of Japan.

Hero Honda's Splendor is the world's largest selling motorcycle.

 Type : Public company BSE:HEROHONDA M Founded: January 19, 1984 in Gurgaon,Haryana, India Headquarters : New Delhi, India Key people: Brijmohan Lal Munjal (chairman & founder)

Toshiaki Nakagawa (joint managing director) Pawan Munjal (CEO) Industry: Automotive Products: Motorcycles, Scooters Revenue: U$ 2.8 billion Website: www.Herohonda.com

 Hero Honda is worlds third largest 2-wheeler maker.

In the mid-1980s, Foreign companies permitted to enter the

Indian market through minority joint ventures.

Four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Motor Company (Kinetic Honda)

The 2006 Forbes 200 Most Respected companies list has

Hero Honda Motors ranked at 108.

 Today Hero Honda has an assembly line

of 9 different models of motorcycles .

Currently the largest producer of

Two Wheelers in the world.

Sold 3 million bikes in the year 2005-06.

 Vision of the Hero Honda is to offer the highest

quality at a reasonable price to meet the customers expectations and to exceed them.

MISSION
Hero Hondas mission is to strive for synergy

between technology,ststem and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers.

 Being the most fuel efficient Company.

To develop Appropriate product & excellent Quality.

To Meet the demands of the sophisticated markets in

Europe & America. To reach an unassailable pole position in the Indian Two Wheeler market. To maintain high standard of ethics & social responsibilities.

 1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd.

Japan signed 1984: Hero Honda Motors Ltd. incorporated 1985 :First motorcycle "CD 100" rolled out 1991: 500,000th motorcycle produced 1992 : Raman Munjal Vidya Mandir inaugurated 1994 : New motorcycle model - "Splendor" introduced 2000: 4,000,000th motorcycle produced Splendor declared 'World No. 1' - largest selling single twowheeler model 2001: One million production in a single year : 5,000,000th motorcycle

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 2003: Becomes the 1st Indian Company to cross the 7 million sales

Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced
2005 : Hero Honda is the World No. 1 for the 4th year in a row

Super Splendor , CD Deluxe , Glamour ,Achiever introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 : Hero Honda is the World No. 1

for the 5th year in a row

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APPROACHES (ORIENTATION)

EXTENT

JUSTIFICATION

It is having good demand all 1.Production concept Partially over India and it is supplying as per the demand in the market.

Applicable

2.Product concept

Partially

In most of the Hero Honda

applicable

brands, special features like self

start, digital speedometer & other things are not included.

Ex : Hero Honda CD 100, CD

Dawn are not having these features like self start, digital speedometer. By this we can justify that this company is not adopting fully but adopting by partially. 3.selling concept Partially applicable The company is adopted this concept partially. Ex : Offers during special occasions.

 Hero Honda introduced First stroke bike in the Indian

market. Hero Honda bikes gives good mileage. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector. It has a good brand image. It gives better service for customers.

 Suppose to be very sophisticated.

They have big gap between cubic capacities of its

products. Spare parts are too costly.

 They should go in new segments of bikes.

There is large no. of young consumers in the market.

Company has to focus on them. They have big opportunities in heavy bike segments. As government policies are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufactures has great opportunities to explore its new innovations and technologies.

 Main threats to Hero Honda are their competitors

like
Bajaj Auto Ltd. TVS motors Ltd. Yamaha Motors India.

Honda motorcycle and scooter India. The cost of the product is very high in comparison

to other companies. Decreasing market share.

 Hero Honda Ambition 133,135 Hero Honda CD Delux Hero Honda Splendor , Splendor+ , Super Splendor,

Splendor NXG Hero Honda CBZ , CBZ Xtreme Hero Honda Passion , Passion+ , Passion Pro Hero Honda Karizma Hero Honda Hunk Hero Honda Pleasure Hero Honda Glamour
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 HERO HONDA CD-DELUXE

Naye Indian ki Nayi Deluxe Bike HERO HONDA SPLENDOR PLUS Designed To Excel HERO HONDA SPLENDOR NXG Bharosa Bhi Style Bhi HERO HONDA PASSION PLUS Whole New World Of Style

 HERO HONDA SUPER SPLENDOR

Generation Nayi Bharosa Wohi HERO HONDA GLAMOUR Simply Magnetic HERO HONDA ACHIE V ER SOLID, Like You! HERO HONDA CBZ XTREME Live Of The Edge!

 HERO HONDA HUNK

NO One Messes With It HERO HONDA KARIZMA Jet Set Go. . . HERO HONDA PLEASURE Karlo rock n roll on the run Why should boys have all the fun? HERO HONDA CD-DAWN Public Ka Apna Transport

BRAND AMBASSADORS

 HERO HONDA KARIZMA

HRITHIK ROSHAN
HERO HONDA GLAMMOUR

YUVARAJ SINGH
HERO HONDA PASSION

HRITHIK ROSHAN
HERO HONDA PLEASURE

PRIYANKA C HOPRA

KEY STRATEGIES
1. To build a strong product portfolio 2. Explore growth opportunities globally 3.Improve its operational efficiency continuously 4. Aggressively expand its reach to customers 5. Continue to invest in brand building activities 6. Ensure customer and shareholder delight.

To strengthen their network in rural areas , the

company started sales, servicing and spare part outlets in small towns and villages across India.

Industry Competitors

TVS HONDA BAJAJ

YAMAHA

Comp
etitors

Strong Weak

Close

Distan Good
t

Bad

Attack Avoid

Bajaj

TVS

Honda

Yamaha

 Total turnover (Net sales & Other Operating income)

for Q3 stands at Rs2881.27 crore reflecting year on year growth of 4.77 per cent, while net profit after tax is Rs300.42 crore showing growth of 9.24 per cent.
Hero Honda, which holds 51 per cent market share in

the domestic motorcycle market, It has crossed the landmark retail sales of more than 6 lakh twowheelers in a month in October.

Company Hero Honda Bajaj Auto TVS Motors Honda

Apr-Jun 2008-09 877,089 391,100 292,530 226,068

Market Share (%) 51.26 15.53 14.78 13.33

Total Market

1,865,767 -

CHART SHOWING MARKET SHARE OF DIFFERENT COMPANIES

13.33% hero honda 14.78% 51.26% bajaj TVS Honda 15.53%

MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

4PS OF HERO HONDA

 PRODUCT

CD Dawn, Splendor, Passion, Glamour, CBZ, Karizma etc.

Pricing Strategy

Justification

Cost based pricing

As Hero Honda is manufacturing concern it involve many cost for different activities like raw materials purchasing, manufacturing, distribution etc,. so, to compensate all these

above cost the company is adopting cost based

pricing and it produces unit wise so they can easily identify manufacturing cost for each unit. Value Based It takes care of its customers through Value

based competitive pricing and good service

after sales. The Company focuses on providing
"Value for Money" through its pricing strategies and after sales services.

 PLACE :

All over INDIA Distribution channel Manufacturer Dealer

Customer

 PROMOTION:

T.V. Add.
News paper Add. Magazine Add.

FM Radio
Hoardings etc. Excellent marketing, finance and loan services, an

efficient dealer network, tactical promotion comprising of fuel conservation campaigns, mobile workshops, safety driving courses and others, all placed Hero Honda in a league distinct from the conventional.

Need Recognition

Information Search formation Search

Evaluation of Alternatives

Purchase Decision

Post Purchase behaviPost Purchase behavior

or

The basic need of a vehicle is for transportation. Hero Honda Pleasure, it mainly degised for young girls & working or non-working women. They need this vehicle for transportation purpose. So, this is the need recognition for buying decision process.

Information
Surprisingly, customers search for information. The

major information sources to which customers will turn fall into four groupsPersonal - family, friends, neighbors. Commercial - advertisements, web sites, salesperson, dealers, displays. Public - mass media, consumer-rating organizations. Experimental - handling, examining, using product

 The customers search for alternative competitive

brand information search. For example, the alternative search for Hero Honda Pleasure is its competitive brands like Honda Activa, TVS Pep+, Bajaj Wave. These are alternative search for this product.

 In the evaluation stage, the consumer forms

preferences among the brands in the choice set. The customer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumer may make up to five sub decisions: brand, dealer, quantity, timing and finally payment method. After all these the customer will go for purchasing the product (Hero Honda Pleasure).

 After the purchase, the customer might experience

positive about the product or negative. Post purchase satisfaction is a function and the products perceived performance. The performance falls short of expectations, the consumer is disappointed; if it meet expectations, the consumer is satisfied. After satisfying with the product the customer may go for influence to buy the same brand.

 After studying about the Hero Hondas company, we

came to know about the companies SWOT, different brands and there features, market share, promotion activities, brand ambassadors, 4Ps of marketing, customers buying behavior and many more. Apart from this in this project we also came to know about the different competitors and their Strengths and Weakness. So, finally we conclude that the two wheeler industry is growing very fast in India and the different companies are coming with new different marketing strategies to sustain their brand in the market.

Thank you!