MARKETING PLAN OF HERO MOTO CORP

PRESENTED BY-

INTRODUCTION

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.

Total unit sold in year 2010-11 is over 4.5 million.

CO

MPA

NY P

RO

FILEHero Moto corp Ltd

Type Public company

Traded as BSE: 500182NSE: HEROMOTOCO

BSE SENSEX Constituent

Industry Automotive

Founded 19 January 1984 (Gurgaon)

Founder(s) Brijmohan Lall Munjal

Headquarters New Delhi, India

Key people Brijmohan Lall Munjal (Chairman)Pawan Munjal (MD & CEO)

Products Motorcycles, scooters, three-wheeler vehicles and spare parts

Revenue 23,579.03 crore (US$4.27 billion)[

Operating income 2,597.07 crore (US$470.07 million)(FY 2010-2011)

Net income 2,378.13 crore (US$430.44 million)(2011)

Parent Hero Cycles

Website www.heromotocorp.com

HISTORY

Hero Honda is world’s third largest 2-wheeler maker.

“THE LICENSE RAJ” : Customers in India were forced to

wait 12 years to buy a scooter from Bajaj.

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. 

COMPETITORS

MARKET SHARE OF MOTORCYCLES IN INDIAN MARKET

Hero Honda Bajaj

TVS Yamaha

LML Kinetic

Royal Enfield Majetic

MODELS(product line)

Hero Honda Ambition 133,135Hero Honda CD 100,CD SS, CD DawnHero Honda Splendor , Splendor+ , Super Splendor, Splendor NXGHero Honda CBZ , CBZ XtremeHero Honda Passion , Passion+ , Passion ProHero Honda KarizmaHero Honda HunkHero Honda PleasureHero Honda Glamour

STRATEGIES

(A) BUSINESS STRATEGY

The company has formed its business units based on the following parameters:

1.) Common manufacturing processes: - This is the most important parameter used by Hero Honda to create its SBUs as this depends on the engineering and assembly processes.

2.) Common raw materials requirements: Products that are similar in their design catering to similar segments share the raw materials and hence need to be clubbed in the same SBU while those with different requirements need a different strategy. 

CONT..

1 -Competitive Strategy

2 -Co-operative Strategy

(B) CORPORATE STRATEGY

1-growth

(Hero honda adopt Growth Strategy)

-Conglomorate

- Concentric

2 -Stability

3 -Retrenchment

(C) FUNCTIONAL STRATEGY

1-R & D

2- Human research strategy

3-Marketing Strategy

PRODUCT PORTFOLIO OF HERO HONDA

 Hero Honda has an extremely versatile product

portfolio catering to the various segments of the two-wheeler industry.

It has the CD Dawn and the CD 100 positioned for the entry-level bike segment primarily aimed at the rural market.

The CD Deluxe, Splendor and the Passion models are aimed at the first time users of the urban segment.

The Passion Plus, Splendor Plus, Splendor NXG and Glamour are aimed at the executive or deluxe segment who want a sporty bike yet an affordable one. The premium motorbike segment is catered to by the stylish products of Hero Honda Hunk, Karizma, CBZ Extreme and Achiever. Finally, the scooter segment is represented by the Hero Honda Pleasure.

“ Hero Honda has a strong product portfolio.”  

STARS are units with a high market share in a fast-growing industry.

QUESTION MARK -These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a break-even unit provides the social benefit of providing jobs and possible synergies that assist other business units

CASH COW are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business.

DOGS, or more charitably called pets, are units with low market share in a mature, slow-growing industry.

 BCG MATRIX FOR HERO HONDA MOTOR LIMITED

PORTERS FIVE FORCE MODEL

THREAT OF NEW ENTRANTSMahindra & Mahindra (M&M), India’s largest tractor and utility vehicle maker is buying the business assets of loss-making scooter maker Kinetic Motor Company for Rs 110 crore to gain an entry into the two-wheeler market.

BARGAINING POWER OF BUYER  Buyers in automobile market have more choice to

choose from and the increasing competition is driving the bargaining power of customers uphill. With more models to choose from in almost all categories, the market forces have empowered the buyers to a large extent.

CONT.. THREAT OF SUBSTITUTE PRODUCTS There is no perfect substitute to this industry. Also, if there is any

substitute to a two-wheeler, Bajaj has presence in it. Cars, which again are a mode of transport.

BARGAINING POWER OF SUPPLIERS: Suppliers of auto components are fragmented and are extremely

critical for this industry since most of the component work is outsourced. Proper supply chain management is a costly yet critical need.

COMPETITIVE RIVALRY The industry rivalry is extremely high with any product being

matched in a few months by competitor.

 

SWOT ANALYSISSTRENGTHS Hero Honda introduced First stroke bike in the Indian market. Hero Honda gives 80 Km/Liter Avg. Huge sale network (3500 Dealers). Better sale service. It has the highest share in automobile sector.

WEAKNESS:They have big gap between cubic capacities of its products. Its market share is reducing from last few years. Spare parts are too costly.

OPPOURTUNITIES:Hero Hondas the first manufacture to launch eco friendly

bikes with 4-stroke engines.

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.

THREATS:Main threats to Hero Honda are their competitors like:- Bajaj Auto Ltd. TVS motors Ltd. Yamaha Motors India. Honda motorcycle and scooter India.

EMOTIONAL BRANDING

SEGMENTATION AND SUB BRANDING

KARIZMA ZMR

GLAMOUR

SPLENDOR NXG

BIKE FOR ALL!!!

Rs.37000.00 to Rs.95000.00

YOUNGISTAAN....

Just 4 her.....

Fill It Shut It Forget It

HAR GAON, HAR ANGAN

• 500 men• 3 two months long

waves• additional sale of

15,000-16,000 motorcycles through each wave

ADVERTISING• Discarded product categorization on the basis of

engine size

• Product differentiation was the key

• Avoided customer confusion of products

• Karizma (premium segment) comes with the punch

line, “Always game”

• The ad for the premium segment Hunk doesn’t talk

of speed or power at all — the focus is on the looks

even while standing

• The CBZ Extreme comes with the promise,

“Thinking is such a waste of time”

Types of Advertisements

Celebrity Advertisements….

Brand endorsers- Virender sehwag, saurav ganguly, priyanka chopra, Hrithik roshan, Rajyavardhan rathore.

Types of AdvertisementsPrint and Outdoor Advertisement…

Types of AdvertisementsCovert Advertisement…

Mujhe Kuch Kehana hai – CBZGavaskar Border Trophy – “Man Of The Match” Hero Honda Bike

Types of Advertisements

Public service advertisements

• “DESH KI DHADKAN” has truly capture the

Indian hearts, minds and souls....

Types of Advertisements

Broadcast advertisements

HERO HONDA ROADIES 5.0

•Immense fan following on twitter, face book, orkut .•It has approx. 1.25 lakh fan followers on face book.

Hero Honda SA RE GA MA PA

Personal selling

• Wide price range.• Each product with multiple optional

features.• Experience speaks.• First six service free• Once in a year free check up for hero

Honda bikes from authorised company service station.

• Good resale value.• Various schemes for government and

military employees.

Sales promotion

• Large product portfolio starting from 37k to 95k

• Consistent launch of variants in the same models

• Wide range of colours available in each category

• Vast network of more than 2100 committed Dealers and

Service outlets spread across the country

• Festive offers- Rs 1000 discount with free accidental insurance

Sales promotion

Hero Honda Passport ProgramCash incentive program

Sales promotion cont…

CSD

“TOUGH MEN, TOUGH BIKES FROM THE WORLD’S NO 1 TWO WHEELER COMPANY.”

Availability on all CSD area depot, anywhere in the.

All commissioned officers / staff - either recountry at CSD pricetired or currently serving in the Indian Army, Navy or Air Force - can avail of this facility.

CORPORATE SALES

Single window processing for delivery at multiple locationsNo running around for documentationAttractive finance optionsHero Honda passport unique CRM programBulk incentive scheme

DGS&DSale to any Govt. Depts.. is done through DGS&DEnsures quality Negotiate with manufactures

Press Release

Celebrating its 25th year, Hero Honda released an innovative

music video in the month of September. Titled "Hero Honda

Dhak Dhak Go“

Hero Honda recently won two very coveted awards - "The

Most preferred Brand of two-wheelers" award at the recent

CNBC Awaaz Consumer Awards 2008, and the "NDTV Profit

Business Leadership Award".

COMMUNICATION STRATEGY

The Objective

Enhance the image of HERO HONDA as most preferred bike of India.

The Goal

Connect with the target group as a unique lifestyle and personality brandThe Task

To be present at almost every touch point with the communication target group

The Challenge

To break the clutter and communicate the Brand message

CREATIVE ADVERTISEMENT

40%

30%

15%

5%

10%

Newspaper &MagazinesT.VExhibition &EventRadioDirect Marketing

SUGGESTION FOR BUDGET ALLOCATION

Corporate Social Responsibility

Sustainable Enterprise/Vocational TrainingThe Green Supply ChainGreen RoofConserving energySafe manufacturing Green technology “We Care about How”

THANK YOU