Hero Moto Cope

Navnirman Institute of Management

An

Assignment Project

On

“Hero Motocorp Ltd”

Submitted By,

“Bikrant rout” Roll No: 155

In The Partial Fulfillment of the Requirement

For the Assignment Advance Marketing Management in Semester VI in

B.B.A. Programme

Submitted To,

Navnirman Institute of Management;

(NIM-B.B.A. collage), Bharthana, Surat.

Affiliated To VNSGU,Surat

Academic Year 2012-2013

Page 1


Introduction of Hero MotoCorp Ltd

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India. In 2001, the company achieved the

coveted position of being the largest two-wheeler manufacturing company in India

and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a

calendar year. Hero MotoCorp Ltd. continues to maintain this position till date.

Hero MotoCorp two wheelers are manufactured across three globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which

are located in the state of Haryana in northern India. The third and the latest

manufacturing plant is based at Haridwar, in the hill state of Uttrakhand.

In the 1980's the Company pioneered the introduction of fuel-efficient,

environment friendly four-stroke motorcycles in the country. It became the first

company to launch the Fuel Injection (FI) technology in Indian motorcycles, with

the launch of the Glamour FI in June 2006. Its plants use world class equipment

and processes and have become a benchmark in leanness and productivity.

Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to

innovate and develop cutting edge products and processes.Hero MotoCorp offers

wide range of two wheeler products that include motorcycles and scooters, and has

set the industry standards across all the market segments.

The Company's growth in the two wheeler market in India is the result of an

intrinsic ability to increase reach in new geographies and growth markets. Hero

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MotoCorp's extensive sales and service network now spans over to 5000 customer

touch points. These comprise a mix of authorized dealerships, service & spare

parts outlets, and dealer-appointed outlets across the country.

The new Hero is rising and is poised to shine on the global arena. Company's new

identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus

on mobility and technology and creating global footprint. Building and promoting

new brand identity will be central to all its initiatives, utilizing every opportunity

and leveraging its strong presence across sports, entertainment and ground- level

activation.

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Mission

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers'

needs and aspirations for mobility, setting benchmarks in technology, styling and

quality so that it converts its customers into its brand advocates. The company will

provide an engaging environment for its people to perform to their true potential. It

will continue its focus on value creation and enduring relationships with its

partners.

Vision

The story of Hero Honda began with a simple vision - the vision of a mobile and

an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new

identity, reflects its commitment towards providing world class mobility solutions

with renewed focus on expanding company's footprint in the global arena.

Strategy

Hero MotoCorp's key strategies are to build a robust product portfolio across

categories, explore growth opportunities globally, continuously improve its

operational efficiency, aggressively expand its reach to customers, continue to

invest in brand building activities and ensure customer and shareholder delight.

Relevancy with current market strategy

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Product: -

The main strategy of this company I product is to provide a stylish, durable bikes

which can easily fit to Indian peoples and easily can able to run in particular Indian

road.

Price: -

Hero Moto corp is a company that provides the new technology product in Indian

market in very less price. There are many products like splendor, passion that it’s

were very less comparing to that segments bikes in market. This company bits its

competitor with related to price.

Place: -

Hero Moto corp’s service centers and showrooms are available in all parts of the

any city so that the consumers as can easily go to nearest service center and

showrooms. Due to this strategy the sales of hero bikes are also increase.

Promotion:-

The promotion of Hero Moto corp is very unique in past when the Hero and Honda

companies we partners. The use the sentence likes “Hero Honda das eke dhedkan”.

The company also has big names in brand promoters.

Target markets of the company

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The target people a mainly all sector of the people and there is a verities of

products in the product mix of company. The sectors and segments are divided

among the income people, style, age, speed etc. some of the product a as bellow.

Impulse:-

this product is lunched recently for those who like sporty and adventures bike. The

target population was mainly adventures person and who have little high income,

as this bike is around 75000 I also can be good for the rich individual in rural area.

This bike fall in150cc bike segment.

CD Dawn:-

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This bike have a unique punch line in advertisement that “CD Dawn Public ka

apna Transport”. By this punch line we can identify that this bike may be for

common people who were average income. This bike falls under 100cc bike

segment’s this bike for low income people so its price was also less which is only

38000 rupees.

CD Deluxe:-

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This bike as also have a punch line that ”CD Deluxe Naye India ke deluxe bike”.

The target costumer may be the common man who have medium range income it is

also a stylize bike in comparison to CD Dawn. But it also falls under 100cc bike

segment. Its price is around 45000 rupees.

Pleasure:-

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This is the only scooter bike in Hero Motocorp company. This scooter has the

punch line that “Why should boys have all the fun”. By this line we can clearly

identify that this scooter is mainly for ladies. It also falls under 100cc scooter

segments scooter which has price of 45000 rupees.

Splendor+:-

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This bike has won many awards in Indian market as very successful bike which

gave a lot of profit to the company. This bike has also falls under 100cc bike

segments. This bike is also for normal people who have medium rang income .its

price is also around 48000 rupees.

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Passionpro:-

This bike is also successful bike in the Indian market .this bike as also a punch line

that”Ab srif style he style bole ga”. This suggest that this bike is very styles and its

target market may be for youth and students ,it comes under low income segment

people .it also falls under 100cc bike segments which had a price of 54000 rupees.

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Glamour Pro F1:-

This bike has a new technology of program fuel injection .This bike is made of

new technology for which any other bike does not have this technology in this

segment. This bike is also is for stylish people and students. But it is a high

segment income people as its price is around 69000 rupees .it engine is also good

and falls under 125cc segments bike.

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Achiever:-

This bike is a new product for the company. This bike is also have the punch line

that “solid like you”. so we can identify that this bike may be for stronger people.

This bike is also falls under 150cc bike segment. The target person may me all

costumers who have medium range income. Its price is also around 60000b rupees.

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CBZ extreme:-

This bike is very stylize look .The target costumer may be the stylish people have

the high income .this bike is also have the punch line “live off the edge”. is bike is

also falls under 150cc bike segments .but the price is high which is around 73000

rupees. This bike is mainly used by the youth and students.

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Hunk:-

This bike is also very styles and is very muscular bike .the target market may be

the higher income segment customer as well as the youth. As it is for high segment

people its price is around 73000 rupees and it also falls under 150cc bike segments.

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Karizma ZMR :-

This bike is very stylize and has very sporty look. This bike is for the customers

who have high income as well like the speed riding of bike.tis bike is mainly used

my youth and students. As it is for high income people its price is also high which

around 105000 rupees. This bike falls under 225cc bike segments.

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Leap Hybrid scooter:-

This scooter is lunched in 2012 Delhi expo and not been in the market. Since the

initiation on a solo journey last year, MotoCorp is quickly increasing its research

and development (R&D) proficiencies, as it displayed at Auto Show its purposes

and vision for the future. This project involves a selection people of some people

within the set-up of R&D at Hero MotoCorp, with some other international

consultants.

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Five different strategy of the company.

Increasing network and manufacturing Excellency:-

Over the last five years, more than 2000 customer touch points have been added to

the Company’s network.The main strategy is to expand the network and give

services to every part of the country. India’s two wheeler industry continues to

benefit from an expanding economy. A revival in agriculture, growing job

opportunities in the service sector and expanding urbanization ensured a healthy

demand for two wheelers. . By the end of the year, overall production capacity

went up and the Company was able to ramp up from 4.6 million units to 5.4

million units. Over the last three years, production capacity has been augmented

by over 2 million units.

Information system:-

Hero MotoCorp’s robust technology heritage was strengthened further during the

year under review. IT initiatives were embarked upon at multiple levels. There was

a strong focus on supply chain integration, process efficiency and accurate and

prompt decision making. By the end of the financial year, the Company had

successfully deployed the system at more than 530 dealers outlets. Crossing this

milestone was no mean achievement, considering the scope and magnitude of the

project. As part of the project, important enhancements were made in the dealers’

portal, which helped boost their integration with the organization’s supply chain.

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People approach:-

The emphasis has always been on buildinga talent pipeline taking into account a

mediumto-long-term perspective.The Company has tried to attract the right talent,

build capabilities and facilitate career development to drive organisational

objectives. The Company augmented its young talent by inducting a fresh batch of

management trainees and GETs like every year. The ET programme has been re-

engineered. Our five-month long induction is based on a ‘Job Function Criteria’

that recognise strengths and facilitate appropriate job alignment. Besides, to widen

the incumbent’s learning horizon, On-the-Job Project (OTJP) and Job Simulation

were introduced for the first time.

Green management:-

The Company’s environmental consciousness – embedded in the credo “we care’’

– continued to be a key area of focus. Since inception, the Company has invested

substantially in clean and green technologies: a fluidized bed (for paint hanger

burning), an advanced incinerator (for paint and sludge), solid landfill (for the

disposal of solid, hazardous and non-hazardous waste), effluent and sewage

treatment plants, and rain water harvesting sites (reference sites), Green Roof (at

Hardwar plant) and others. The Green Vendor Development Programmers has

struck deep roots since its commencement in 2007. These collaborative

programmers call for partner companies to demonstrate their commitment towards

improved environmental performance and striving for continual improvement.

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Advertisement strategy

The company had the strategy to provide their bikes in low range price witch to

compotators with same function which compotators has. The company and made

very big endowments there is very big list of band promoters like Shahrukh Khan,

Ranbir Kapoor, Akon, Priynka Chopda and may big names are included in the list.

Page 20


New Rural Marketing Strategy of Hero Motocorp Ltd

Introduction

Marketing principles are the same for rural or urban markets. It is the approach to

applying these principles that requires adjustments according to specific

opportunities and constraints resulting from a host of rural conditions in India that

a marketer faces.

Rural population is culturally heterogeneous. They differ in their religious beliefs,

cultural factors, customs, traditions, social patterns, linguistic factors, literacy

level, and incomes. The major religious groups in rural India include Hindus,

Muslims, Christians, Buddhists, and Sikhs.

The literacy level in rural India is estimated to be about 30 per cent.

Rural consumers are believed to be somewhat more conservative and tradition-

bound than their urban counterpart. However, the increasing levels of education,

over exposure to the media and the free modern city environment is influencing

their lifestyles

Four factors determine the demand in rural India:

1. access,

2. attitude,

3. awareness, and

4. affluence.

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In general, the following factors need to be taken care of:

Segmentation and targeting

Product planning

Pricing

Distribution

Promotion

The following variables seem to be relevant to most of the rural areas in India and

can be considered in determining the different market segments:

Geographic location

Population density

Gender, age, occupation, income levels

Socio-cultural considerations

Language and literacy level

Lifestyle, benefits sought

Nearness to an urban area/industrial town

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Product:-

Companies have to consider whether the existing successful products available in

the urban areas can be marketed in the rural markets without any modification. It is

advisable for companies to first determine what consumers in the rural markets

need and want, and then select products from the available ones.

For example the splendor which is success full in urban area after determine the

need for rural people they make the advertising in rural area, after that it become

great success full bike in urban area also.

Price:-

The rural consumer in general, is price sensitive, or more appropriately, value

conscious. The marketer will have to examine ways to make the product affordable

to a large number of consumers in the rural markets.

For example when the company has introduced the bike called splendor they put

the price less in comparison to urban are so that a middle class people can easily

afford it .

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Distribution:-

Distribution is critical to penetrate rural markets for success.

Those of us who hail from rural areas and others who have had the opportunity of

visiting rural areas in different parts of the country can very well appreciate the

challenges marketers face. The first constraint relates to aspects of physical

distribution.

The second set of difficulties relates to the organizing of an effective and efficient

distribution channel.

For example when the splendor is lunched in rural area it is available in all

showrooms in rural area. The service centers are also established in many rural

areas for the success of the bike.

Promotion:-

Rural marketing poses several problems with regard to various methods available

to the marketers for communicating effectively in different areas of the country.

Using symbolic association of products or events with deities, movie heroes, and

local folklore heroes etc. can have special significance in influencing consumer

attitudes, awareness, and product recall.

For example the company has made many advertisements in rural area and

hoardings and many endowments are also done in rural are. For the result splendor

is more purchased in rural area then urban area.

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Life cycle of Products

Impulse:-

Impulse is a new product to the market which is lunched recently when Hero and

Honda were splinted to different company. As it is new product so it is in the

introduction stage of life cycle.

The main strategy of the company to this good would be to make aggressive

advisement to aware to people. Increase the sales my marketing strategy.

CD Dawn:-

As CD Dawn is very old product to the company and it is in the decline stage of

product cycle.

For this product company has to make important decision is to make changes in the

product and relaunch it or to drop the product from their product line.

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Passion pro:-

Passion pro is changed product for the existing product of passion. When the

passion pro was in the decline stage the company had made changes in their

features and relunched it.

This product is now at the maturity stage in the production cycle.the company has

to hold on the product for that the company has to cut down the price of that

product as the price is high comparing to other 150cc bikes.

Hunk:-

This product has unique feature and also good product.In compitation to Hunk

many product is very good.so the company has to cut down the price which is

around 73000 rupees.

The product is in decline stage so the company has to make crucial decision

regarding that product.

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Karizma ZMR:-

This product is the new product which is been relunched after making the existing

product Karizma. Company had made the good decision for improving features of

existing product and makes it a totally new product.

The product is at growth stage in product life cycle. The company has to improve

their performance and had to increase the sales of the product.

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Hero Moto Cope

Documents

medium range

hero moto

100cc bike

150cc bike

literacy level

high income

life cycle

global arena