Demographic Segmentation

VS

Demographic Segmentation

MODELMAKE

ENTRY DELUXE PREMIUM

BAJAJ KRISTAL(100)CT(100)PLATINA(100)CV(100)DISCOVER(100)

PLATINA(125)XCD(125)DISCOVER(125)DISCOVER(135)

PULSAR(150)PULSAR(180)PULSAR(200)AVENGER(200)PULSAR(220)

HERO HONDA CD100(100)CD100ss(100)CD DAWN(100)CD deluxe(100)CD deluxe-ss(100)SPLENDOR(100)PASSION(100)PASSION PRO(100)

GLAMOUR(125)GLAMOUR F1(125)SPLENDOR +(100)SPLENDOR NXG(125)Super SPLENDOR(125)PASSION +(100)AMBITION (133)AMBITION (135)

ACHIEVER(150)CBZ(150)CBZ Xtreme(150)HUNK(150)KARIZMA(223)

Gender Based Segmentation

Pricing

PRICEMAKE

ENTRY SEGMENT DELUXE SEGMENT PREMIUM SEGMENT

HERO HONDA 34,000 - 45,000(8) 41,000 - 58,000(8) 60,000 - 75,000(5)

BAJAJ 32,000 - 40,000(5) 43,000 - 52,000(4) 60,000 - 87,000(5)

Targeting

Brand Positioning

Youth Centric Programmes

• Your Subtopics Go Here

BCG-MATRIX

Sl No. SBU

Market share of

Hero Honda (SBU)

Market share of largest

competitor

Relative market share

Market growth

rate

Quadrant in which the SBU

lies

1 Motorcycles 53.8% 27.5%( Bajaj )

1.95 19.89 % STAR

2 Scooters 12.8 % 55 % (Honda)

0.23 12.36 % Question Mark

GE Matrix- Motorcycles

Factors Underlying Market Attractiveness

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Reasons

Annual market Growth rate

0.25 4 1.0The Annual market growth rate of Hero Honda motor cycles is 11%

Overall market size 0.25 4 1.0 The overall market size is 69,15,700

units for 2008-09.

Historical Profit Margin

0.15 4 0.6

Market Rivalry 0.20 2 0.4Highly competitive Market with Bajaj,

Yamaha, TVS, HMSI, Suzuki as the key Players.

Demand Variability 0.15 4 0.6Highly consistent demand. Very low

demand variability ranging between 3-3.5 lakh units in a financial year.

Total 1.0 3.6

Factors Underlying Market Strength

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Reasons

Market share 0.15 4 0.60 The Market share of Her Honda is 59%

Brand Image 0.15 4 0.60 25 Years of market “Trust & reliability”

Pricing 0.25 4 1.00 Product Range – 34,800 to 75,700

Product quality 0.2 3 0.60 Assurance of Quality by giving 3 Years Warranty and 6 Free services

Research & Development

0.25 2 0.50 Hero Honda’s R&D expenses accounts for 2.7% of its net sales and

90% of it goes towards paying Royalty and Technology fees to its

Technology partner Honda.

Total 3.30

Mar

ket

Att

ract

iven

ess

Strong Medium Weak

Lo

wM

ed

ium

Hig

hBusiness Strength

5.00 1.002.333.67

5.00

3.67

2.33

GE Matrix- Scooteritte

Factors Underlying Market Attractiveness

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Reasons

Annual market Growth rate

0.30 4 1.20The overall Market Growth rate is 12%

Overall market size 0.30 3 0.90 The market size is 11,80,000 Units for 2008-09

Historical Profit Margin

0.10 3 0.30

Market Rivalry0.20 4 0.80 High competition from Honda having a

market share of 55%

Demand Variability0.10 3 0.30 Very Low Demand variability with a

sale of Approx. 12000 units a month.

Total 1.0 3.50

Factors Underlying Market Strength

Factors Weight Rating

(1 –5)

Value =

(Weight * Rating)

Reasons

Market share 0.15 2 0.30 Pleasure has a market share 12.8%.

Brand Image 0.15 3 0.45 Hero Honda pleasure has gained acceptance among the Women

commuters.Pricing 0.25 3 0.75 The Price of pleasure is 36,400 as

compared to 41,800 of Honda Activa. Product quality 0.20 3 0.60 Hero Honda’s prime focus is Quality

Assurance

Research & Development

0.25 1 0.25 Very Less Development in the product range offered.

Total 1.0 2.35

Your Topic Goes HereM

arke

t A

ttra

ctiv

enes

s

Strong Medium Weak

Lo

wM

ed

ium

Hig

hBusiness Strength

5.00 1.002.333.67

5.00

3.67

2.33

Ansoff Matrix

MARKET PENETRATION

• Pro-biking showrooms• Promotional

campaigns• Advertising through

media• Bajaj Auto Finance

Targeting foreign markets

INDONESIA

NIGERIA

SRI LANKA

BANGLADESH

COLOMBIA

MEXICO

PRODUCT DEVELOPMENT• Discover 100cc • Bajaj 220cc• Kawasaki Ninja• Gearless Scooter

launch

Bajaj Auto is also planning to move into the gearless scooter segment.

DIVERSIFICATION• Four-wheeler diversification Bajaj has entered into a joint

venture with Renault and Nissan & are planning to launch a car next year

• Bajaj Finance Bajaj Auto Finance earlier a part

of Bajaj Auto has de-merged from it and is now a part of Bajaj Finance. Bajaj Auto Finance Ltd offers attractive loans for purchase of new Bajaj vehicles.

SWOT Analysis

STRENGTHSBrand nameAggressive promotion and effective advertisingFuel efficient bikesLow in cost as compared to other competitors (entry level bikes)Better technologyCountry wide presence of quality service centersStrong presence in rural marketStrong distribution networkHigh resale valueAfter-sales service

WEAKNESSESBecause of the joint Venture between Hero and Honda, Hero Honda cannot sell its bikes in countries where Honda has a presence (Nepal, Bangladesh and Colombia) without its consentAs a result the sales of Hero-Honda through exports accounts for only 3% of its total sales as compared to 23% for Bajaj in exportHonda is its technology partner till 2014 and hence Hero doesn’t have a well established R&D division as compared to TVS and Bajaj and the R&D division is not close to the manufacturing facilityBrand name of Hero itself has no influence in the industry

THREATSStiff competition from Bajaj DTS-Si engine seriesSports bikes from YamahaMopeds from Bajaj (Wave and Kristal)FDI in automobiles is 100%Entry of global giants like Harley-Davidson in the Indian market

OPPORTUNITIESGrowth in the premium segmentEntry into the Scooterette segmentFamily mopedGlobal expansionLarge market for the high-performance segment which is increasing with the ever-growing spending power of the Indian middle-class

THANK YOU