Post on 08-Apr-2018
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
1/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
2/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
3/42
CONTENTSCONTENTS
INTRODUCTION OF TWO WHEELER SECTOR IN INDIA
KEY PLAYERS IN TWO WHEELER INDUSTRY
SEGMENTATION OF TWO WHEELER
KEY DRIVERS OF THE INDIAN TWO WHEELER INDUSTRY STRATEGIC MARKETING TOOLS
STRATEGIC MARKETING CONCEPT
INTERACTION BETWEEN MARKETING AND CORPORATESTRATEGY
CORPORATE VS MARKETING STRATEGY
INFLUENCES ON MARKETING STRATEGY
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
4/42
CASE STUDY:
HERO HONDA PROFILE
MARKET MIX OF HERO HONDA CASE STUDY OF KARIZMA
SWOT ANALYSIS OF KARIZMA
SWOT ANALYSIS OF COMPETITIOR (BAJAJ PULSAR220)
MARKETING MIX OF KARIZMA
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
5/42
INTRODUCTIONINTRODUCTION
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
6/42
KEY PLAYERS IN THE TWOKEY PLAYERS IN THE TWO
WHEELER INDUSTRYWHEELER INDUSTRY
HERO HONDA MOTORS LTD.
BAJAJ AUTO LTD. TVS MOTOR COMPANY LTD.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
7/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
8/42
SEGMENTATION OF TWO WHEELERSEGMENTATION OF TWO WHEELER
BIKES
SCOOTERS
MOPEDS
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
9/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
10/42
KEY DRIVERS OF THE INDIAN TWOKEY DRIVERS OF THE INDIAN TWO
WHEELER INDUSTRYWHEELER INDUSTRY
Rise In Indias Young Working Population
Rise of Indias Rural Economy and Growth in
Middle Income Households Greater Affordability of Vehicles
Rapid Product Introduction and Shorter ProductLife Cycle
Inadequate Public Transport Systems in mostUrban Areas
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
11/42
STRATEGIC MARKETING TOOLSSTRATEGIC MARKETING TOOLS
MARKET ENVIRONMENT
SEGMENTATION
TARGET MARKET
NICHE MARKET MARKET MIX
PRODUCT MIX
PRICE
PROMOTION
PLACE
PEOPLE
PHYSICAL EVIDENCE
PROCESS
DEALING WITH THE COMPETITION
DISTRIBUTION CHANNELS
THE VALUE CHAIN
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
12/42
STRATEGIC MARKETINGSTRATEGIC MARKETING
CONCEPTCONCEPT
MarketingMarketingStrategy consists of an internallyStrategy consists of an internally
integrated but externally focused set ofintegrated but externally focused set ofchoices about how the organizationchoices about how the organization
addresses its customers in the context ofaddresses its customers in the context of
a competitive environment. A strategya competitive environment. A strategyhas five elements: it deals with where thehas five elements: it deals with where theorganization plans to be active; how itorganization plans to be active; how it
will get there; how it will succeedwill get there; how it will succeedin the marketplace; what the speed andin the marketplace; what the speed andsequence of moves will be; and how thesequence of moves will be; and how the
organization will obtain profitsorganization will obtain profits
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
13/42
INTERACTION BETWEEN MARKETING
AND CORPORATE STRATEGY
Figure 20.1
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
14/42
Corporate versus marketing strategy
Corporate strategy:
Allocation of resources within anorganisation to achieve the business
direction and scope specified within
corporate objectives.
Helps to control and co-ordinate thedifferent areas of the organisation.
Marketing strategy:
Defines target markets, direction
and requirements in order tocreate a defensible position
compatible with the overall
corporate strategy.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
15/42
INFLUENCES ON MARKETING STRATEGY
Figure 20.2
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
16/42
Marketing plans and programmes
Marketing plan:
Turning strategies into implementable actions.
A detailed written statement specifying targetmarkets, marketing programmes, responsibilities,time scales and resources to be used within thedefined budgets.
Marketing programmes: Actions, often tactical, using marketing mix variables
to gain advantage within target market.
Means of implementing the marketing strategy.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
17/42
Types of growth
Intensive growth:
Market penetration.
Market development.
Product development.
Diversified growth
Integrative growth - backward, forward, horizontal.
No growth - harvesting, entrenchment, withdrawal.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
18/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
19/42
Competitor analysis
A systematic attempt to identify and understand key elements of a competitors
strategy in terms of objectives, strategies, resource allocation and implementation
through the marketing mix.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
20/42
Porters Five Forces Model
1. Bargaining power of suppliers.
2. Bargaining power of customers.
3. Threat of new entrants.
4. Threat of substitute products or services.
5. Rivalry among current competitors.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
21/42
Concerns of an Org.s competitive analysis
1. Who are our competitors?
2. How can our competitors be grouped meaningfully?
3. What are our competitors strengths and weaknesses?
4. What are our competitors objectives and strategies?
5. How are our competitors likely to react to changes in the marketing environment?
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
22/42
Concerns of an Org.s competitive analysis (1)
Competitor identification
1. Who are our competitors?
Similar specific-same product, technology and target market
Similar general-same product area, but different segments
Different specific-same need satisfied by different means
Different general-competing for discretionary spend
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
23/42
Concerns of an Org.s competitive analysis (2)
2. How can our competitors be grouped meaningfully?
Different characteristics for identifying Strategic groupings
Figure 20.8Source: Adapted from Wilson et al. (1992).
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
24/42
Concerns of an Org.s competitive analysis (3)
3. What are competitive strengths and weaknesses
Requires use of various information sources.
Consider in terms of critical success factors:
e.g. manufacturing, technical and financial strength, relationships with supplier andcustomer, its market and segment, product range, its volume, cash and profits etc.
Information can be used to plan and launch attack.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
25/42
Concerns of an Org.s competitive analysis (4)
4. What are our competitors objectives and strategies?
Objectives related to cash generation, market share, technological
leadership, quality recognition etc.
Find clues in product portfolio.
Strategy - related to its positioning, marketing mix etc.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
26/42
CCase study in relation to twoase study in relation to two
wheeler industrywheeler industry
Players in two wheeler segment
Major development in this sector
Problems faced by two wheeler segment
Growth strategy of hero Honda
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
27/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
28/42
SStory of making a real herotory of making a real hero
The Joint venture between Honda MotorsThe Joint venture between Honda Motors --Japan and Hero group made it a real Hero ofJapan and Hero group made it a real Hero of
twotwo--wheeler industry and made Herowheeler industry and made Hero--HondaHondaMotors the worlds largest twoMotors the worlds largest two--wheelerwheeler
company.company.
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
29/42
IntroductionIntroduction
1.1 - Hero Honda Group
1.2 - Company Profile
1.3 - Strategic Intent of HHML
1.4 -Two - Wheeler Industry in India
1.5 - Key Milestones
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
30/42
AAlliances entered by hero hondalliances entered by hero honda
groupgroup
Technology Related
Partnerships/
Product Engineering
Related Alliances
1. Honda Motor Companyof Japan
2. Showa Corporarion,
Japan
3. Honda Foundry
Company Limited, Japan
4. Fein Tools, Switzerland5. Gujarat Industrial
Investment Corporation
6. Wean United, USA
7. Kawasaki Steel
Corporation, Japan
8. National Bicycle, Japan9. Aprilia, Italy
Alliances & Joint Ventures
1. Microsoft, Singapore
2. DynEd International
3. ACS. USA
IT Related
1. PTC
2. Porsche Design
3. Target Design
4. Universal CyclesPlc, UK
5. EralMetall, Germany
ted Alliances
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
31/42
Resource analysis of hero hondaResource analysis of hero honda
Financial resourcesFinancial resources
Physical resourcesPhysical resources
Technological resourcesTechnological resources
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
32/42
FFinancial resourcsinancial resourcs
48%
26%
26%
EQUITY SHAREHOLDERS
HERO GROUP
HONDA GROUP
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
33/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
34/42
strategiesstrategies
Leadership
Promotional strategy
marketing mix
Target market
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
35/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
36/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
37/42
Group AnalysisGroup Analysis
- Value Chain Analysis
- SWOT Analysis
Competitor Analysis
- BCG Matrix
- Porters Five Forces Model
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
38/42
VValue chain analysisalue chain analysis
Inbounds logistics
Operations
Marketing and sales
Services
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
39/42
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
40/42
. SWOT Analysis. SWOT Analysis
STRENGTHS
Huge brand equity among customers
R & D due to JV with Japanese giant Honda
Models in almost every bike segment
Healthy growth in profits
Brilliant relations with customers and dealers
WEAKNESSES
Relatively low cash reserves due to massive dividend payouts
Virtual absence in the highly lucrative bike segments
Imports approximately more than 30 percent of its spare parts requirements
Slow to react to market changes late entrants into the 125 cc segment
Too much dependence on few models
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
41/42
OPPORTUNITIES
HHML can still make it up by launching a strong model in the 150 cc segment
It has opportunity to pick pace in the 125 cc segment which is relatively unexploited
Exports market can form a larger part of its revenues
Advertisements appealing to youth can do wonders for the company
Cruiser bike segment is unexplored by HHML
THREATS
All major bike makers in the world are lining up for India
The growth in 2 wheeler market is slowing down
Absence in the 150 cc could harm the companys growth plans
Low cash reserves
HHML is losing foothold in exports market which is now dominated by Bajaj
8/7/2019 Srategic Marketing of Rwo Wheeler Industry
42/42
VisionaryLeadership
TechnicalSuperiorit
y
BrandImage