COMPARISON BETWEEN THE DISTRIBUTION CHANNEL OF HERO
HONDA AND YAMAHA
Submitted by :-Chirag AdlakhaKamal Sidana
Sandeep RanJanSarada Prasan
Saurabh PrasharShyam Modi
Hero Honda :-Joint venture of Hero cycle Co.
and Honda Motors Co.Formed on January 19,1984 at
GurgaonFormed by Mr. Brijmohan Lal
ManjalIt has a market share of 48%Sales and service is conducted
through over 760 dealers and around 1100 service centers
Cont…Producing 3 million bikes in a
year through 3 production centre situated at Gurgaon, Dharuhera& Haridwar.
Claiming as the World’s No.1 two wheeler company from last 6 yrs
In 2006,As per the Forbes magazine, it was ranked at 108
Yamaha :-In August 2001,YMI Pvt. Ltd. Was
incorporated as a subsidiary of Yamaha Motors Corporation
Formed by Mr Yukimine TsujiIt has a market share of less than
10%Its production plants are situated
at Faridabad (Haryana) and Surajpur (UP).
Its key factor is Quality with Performance
Objective of the project :-Comparing two companies on the
basis of their distribution channel structure
Analyzing the pros and cons of their distribution channel
Core competency of Hero Honda :-Introduced “Rural vertical”
project in 2007 to encourage sales in rural area
Produce fuel efficient bikes by keeping the Indian customer in mind
Introduced the “Passport Programme”
Undertake aggressive selling efforts during the festive seasons.
Core competency of Yamaha :-
Applying latest technologyComing with fashionable bikesEncouraging the youth with sport
spirit
Distribution structure of Hero Honda :-
Manufacturer
Dealer
Customers
Distribution structure of Yamaha :-
Manufacturer
Distribution centre
Depot
Dealer
Customer
Comparison between Hero Honda & Yamaha :-Yamaha – distribution takes place
through its depots as well as through its dealers.
HH – distribution takes place only through the dealers.
Yamaha has adopted the concept of direct shops for distribution
Hero Honda does not have any such strategy for its distribution channel.
Cont…Hero Honda – evolved the
concept of ARD(Authorised Representative of Dealer)
Main object of fulfilling the rural area needs thus strengthening the distribution network.
Hero Honda has an additional benefit of the “Cityworks” concept.
Recommendation to Yamaha :-
Yamaha should try to avoid the depots system from its distribution channel.
Yamaha should try to maintain a good customer relation which can help to raise the sales
Recommendation to Hero Honda :-Hero Honda should try to adopt
the concept of direct shopIt can start a new distribution
channel for its premium range bikes
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