STP and 4P analysisHero Karizma ZMR

Karizma – ZMR Commercial

https://www.youtube.com/watch?v=dRosUZRLrOo

STP Analysis

Segmentation – Based on the Karizma ZMR commercial

Geographic: Demographic:

Psychographic: Behavioural:

Region*

City#

Rural/Urban

Age

Family Size

Gender

Lifestyle

Personality

Income

Education

Occupation

SEC classification

Occasions

Benefits

User status

Usage rate

Loyalty status

Readiness stage

Attitude towards product

#Relevant segmenting variable

*Irrelevant segmenting variable

Characteristics of relevant segmenting variables

Gender

SEC classification

Male Female

Age

20-25 25-30 30-35 >35

City

Tier I Tier II Tier III

Rural/Urban

Rural Semi urban Urban

Personality

Lifestyle

Culture SportsOutdoo

r

Benefits

Quality ServiceEconom

ySpeed

Compulsive GregariousAuthoritari

anAmbitious

Attitude towards product

Enthusiastic

Positive Indifferent Negative

Income

Lower Middle Upper A1 A2 B1 B2 C

Gender

SEC classification

Male Female

Age

20-25 25-30 30-35 >35

City

Tier I Tier II Tier III

Rural/Urban

Rural Semi urban Urban

Personality

Lifestyle

Culture SportsOutdoo

r

Benefits

Quality ServiceEconom

ySpeed

Compulsive GregariousAuthoritari

anAmbitious

Attitude towards product

Enthusiastic

Positive Indifferent Negative

Income

Lower Middle Upper A1 A2 B1 B2 C

Targeted customer segment

Targeting – Based on Karizma ZMR commercial

Positioning – Based on Karizma ZMR commercial

Hero Motocorp is running a campaign for the Karizma ZMR 2014, themed ‘Above all’.

Hero has used User and Category positioning strategies to market the new Karizma ZMR targeting the bikers who are always ready for action.

Positioning statement:Karizma ZMR provides the best riding experience among all semi premium sports bikes, because of improved projector headlight, stunning turn indicators, wind screen attached mirrors, split seat, and newly designed exhaust.

Product (Karizma ZMR) (1/2)

Safety

Diamond framework for aerodynamic stability

Firmness on road provided by:• Broad rear tyre + Nitrox suspension• Dual disc brakes

Colors: Panther black, Blazing red, White, Orange

Product evolution: • Karizma (2003)• Karizma R(2007)• Karizma ZMR (2009)

Product variants

Design

Better aesthetics provided by: • Vertically stacked twin headlamp• LED daylight running lamp (DRL)

Product of highest quality

Approved by ARAI (Automotive Research Association of India)

Quality

Features

Powerful 4 stroke engine (220+ cc single cylinder)

Sporty seating posture, Aerodynamic design

Real time mileage indicator

• Break-through service package: 3 years or 40K kms

• Warranty period and 6 free service benefits up to 18 months

Warranties/Services

4P Analysis

Transportation

Login ID and Password to start the bike. Protection against bike theft

Home pick up and drop for servicing using Mobile App

High Mileage, Strong braking system, Better Pickup

Sporty design, PGM-FI engine, Nitrox suspension, Extended Warranty

Product (2/2)

Core benefits

Basic product

Expected product

Augmented product

Potential product

Karizma Product placement

1. Distribution Channels

• Extensive distribution network with more than 75 parts distributors, 800 authorized dealers and 1150 Authorised Service Centres

across India• Operational in over 18 countries

through 6000 + touch points across the world

• Over the past four years, its distribution network has grown nearly 2x compared to peers

• HERO GENUINE PARTS: Dedicated business unit for serving customer’s need of genuine parts

• To strengthen their network in rural areas, the company started sales, servicing and spare part outlets in small towns and villages across India.

• In 2009, the Company focused on enhancing its reach across unrepresented geographies through a unique programme called Service Har Jagah.

• Around 8,500 service camps conducted on a monthly basis covering 7,500 villages.

Online Mode:• E-commerce major Snapdeal and Hero MotoCorp have tied up to sell the

latter’s products online.• Hero Motocorp is working to develop its own online retail sales venture, likely

to go live later this year.

Place (1/2)

1

3. Market Coverage

The showrooms are present in Metros, Tier 1,2 and 3 cities as well as all the cities and towns with population of 1 lac & more.

• At present, Hero MotoCorp has three manufacturing facilities -- at Gurgaon and Daruhera in Haryana and Haridwar in Uttarakhand -- with a total capacity of 6.9 million units annually.

• It is set to commission the fourth facility at Neemrana in Rajasthan and is in the process of building its fifth facility in Halol, Gujarat at an investment of Rs.1,100 crore.

4. Transport

The transportation from manufacturing site to distribution centre and from there to showrooms is handled by Damco and Parekh logistics based in Noida and Faridabad.

1. Locations2

3

4

Place (2/2)

Comparison of bike prices in the sport segment

Text

Rs 119,500

Rs 105,500

Rs 94,000Yamaha R15

Karizma ZMR

Pulsar 220

• Karizma ZMR is basically a premium sporting bike.• It’s pricing is very competitive , when compared to its counterparts like Yamaha & Bajaj.• Moreover when it comes to the pricing of spare parts of the bike it is comparatively

cheaper and more easily available than other bikes available in this segment.

Pricing

Promotion (1/2)TV

Advertisements

Reality Shows Online contests

Cricket World Cup

Jet Set Go (2003) Always Game (2007) Above All (2009)

Ads like Jet Set Go, Always Game and Above All were targeted to all

those customers who wanted a stylish and sporty bike as a status symbol

rather than utility. Hrithik Roshan rode his Karizma faster than a fighter

plane in the ad “Hero Karizma, Jet Set Go” and created a sensation amongst

the youngsters.

Reality Show MTV Roadies has been promoting Karizma from its very first season. All competents use only the

Hero Karizma bike from the last twelve years.

So, by sponsoring the show Hero promotes their brand Karizma among the youngsters all over India and also gave bikes to winners and other challengers.

TV Advertisements

Reality Show- Roadies

Online Contest- Hero Karizma ZMR Wanderers

TV Advertisements

Reality Shows Online contestsCricket World

Cup

Cricket World Cup

Hero being one of the Major sponsors of the 2011 ICC Cricket World Cup promoted Karizma ZMR by launching an online “Kricket” game. It displayed its flagship model the “Karizma ZMR” in the flesh on a strategically chosen spot on the ground in every single cricket match in the 2011 World Cup. 

An ongoing monthly online contest hosted on Autocar India and Hero MotoCorp’s facebook page where all participants answer some simple questions, and at the end of the contest every month, three winners are chosen.These lucky bike enthusiasts win an all-expenses-paid two nights, three days ride on three Hero Karizma ZMRs. The rides are planned well in advance and cover several beautiful locations across the country.

Promotion(2/2)

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