Study Of The Distribution Channel Used By Hero MotoCorp And Commercial Aspects And Implications of Various Taxes And

Duties Incurred While Reaching To The End Consumer

Team Members: Sree Shivam (01) Shan Prabhakaran (22) Nishant Sinha (25) Rahul Ranjan (40) Purvi Tulsyan () Akanksha Tiwari () Pranay Jha (57)

Introduction:
Through this project we would try to understand how Hero MotoCorp reaches out to its end consumers. This would comprise a detailed study about the distribution channel used by the company along with the commercial aspects and implications of various taxes and duties.

About Hero MotoCorp:

Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. The company is the largest two wheeler manufacturer in India. Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning out 3 million bikes per year.

Objectives:
Study of distribution channel used by Hero MotoCorp. (From its manufacturing units to the end customer). What type of distribution channel does the company uses (Is it a direct dispatch or is there any middlemen involved). What are the criteria for appointing the dealers and distributors. What are the constraints and strengths of the existing distribution channel. To understand various agreements and deals done with the distributors such as Bank Guarantee. To investigate the implications of the various taxes and duties on the cost of the vehicles throughout the distribution channel.

Methodology:
Data and information will be collected from the following sources: Authorised Hero MotoCorp dealer (Shyama Automobiles). Personal interviews with the Mr Raju Chaudhary (Owner) Secondary data from Newspapers, Internet and Business magazines. Some of the major aspects of the distribution channel that will be investigated will include: Transportation Warehousing Inventory Management Criteria for appointing the dealer Constraints and strengths of the existing distribution channel Commercial aspects and implication of various taxes/duties levied by the Central, State and the Local bodies would be investigated. Finally the implications of these taxes/duties on the distribution channel will be studied and everything that happens from the company to the end consumer would be inferred.

Benefits of the study:

The study would give a proper understanding of the distribution channel
involved in the automobile industry. (Right from the factory to the buyer) The study would give a hands on information on how a deal is truck with a dealer and what are the nitty-gritty of the whole structure. Familiarization and understanding of the various taxes/duties levied. How the different taxes/duties affect the price of a single manufactured unit till it reaches the end customer.