Professional Documents
Culture Documents
getting a wide choice while buying one these gave to considered the
Introduction
Satisfaction is the persons feeling of pleasure (or) disappointment
companies are aiming for high satisfaction because they are much
ready to switch. ]
friend and the associate advice and the marketers and the
any company
are the sun beams, AIS, BBA and Royal Enfield. From these motor
cycles only the Royal Enfield has existence in the motorcycle market.
launched in Indian two wheeler market those are the Rajdoots, Java,
market in a joint venture with the Lohia machines and our major
Japanese motor cycle manufacture set up joint venture companies to
Our brand
confidence.
In doing so, we ensure a special pace for our self in the heart
market.
Our brand essence is excitement
excitement engineering.
Learning
Innovation
Chapter -2
History
and 70 % two wheeler in the country. India was the second largest
(Manufacturer of Vespa)
The license raj that exist between the 1940s to 1980s in India ,
did not allow the foreign companies to enter the market and import
scooter from Bajaj. The CEO of Bajaj commented that he did not
year 1990, Bajaj has a waiting list that has twenty six times of annual
The motorcycle segment has the same long wait time with three
made a 350cc bullet wit the only four – stroke engine at that time and
took the higher end of the higher end of the market but , there was
little competition for there costumer . Ideal Jawa and escorts took the
venture. The two wheeler market with for indo Japanese joint venture:
Hero Honda TVS S Suzuki, Bajaj Kawasaki and kinetic Honda. The
dynamics from the supply side to demand side with a large selection
of two wheelers on Indian market customer started gain over the
limited and Japans Company Honda motors limited for the first 100cc
India.
Company profile
Hero is the brand name used by the Munjal brother in the year 1956
with the flag ship company hero cycle’s .the two wheeler
the 1940’s and turned in the world largest bicycle manufacture today.
The Munjal run their own steel make free wheel and other critical
he hero group has a passion for setting the higher standard and
Munjal family and Hero Honda company LTD HHM mission statement
is :
product and services that meet the quality price and aspirations
of the customer”.
Product profile
Price list
Colors in Vehicle
GLAMOUR
metallic.
CD DELUXE
SPLEDOUR
black candy red , blaze , boon silver, metallic, sierra metallic,
PLEASURE
metallic.
CD DAWN
CD 100SS
PASSION PLUS
KARIZMA
after tax (PAT) at Rs 306.30 crore for the second quarter. Hero
11.38 per cent in the first quarter, the company kicked off the
second quarter with a 39.8 per cent growth in sales in the month
of July, and followed up with 26.8 per cent growth in August and
Said "We are happy with our financial performance. It gives immense
joy to see this kind of results in the 25th year of our company. I wish
ancillaries and also our joint venture partners Honda Motors Co – for
Ltd,
said "Our numbers speak for themselves. Even in this volatile and
industry growth, our market share is at an all time high, and the
financial balance sheet is a delight – all the factors which form the
added.
customers and they can surely look forward to many more launches
HHML’s good run through the industry slump in 2007 has been
distribution network
Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda
high interest rates and overall credit squeeze. The festival month of
October is going to be crucial in determining the overall outlook of the
with more than 12,000 units being sold in August this year.
(365,022 units)
wheelers
Motors Ltd.
results are now visible. Our bottom line has seen a consistent
following segments:
The client analysis from our questionnaire it was found that our client
HHML & TVS is overlooking one feature in bike which is its low
the sales target, two options are available with the client; one is
segment, from 42% in FY99 to 77% in FY04. No doubt, that the shift
Honda was better than the industry peers, barring two years. In the
Targeting
“India and Bharat co- exist today. India comprises of fast growing
main stream. We seek to walk & march with both India and Bharat”
Strong Fundamentals
The company has clarified about its intention of setting a third plant
upon a green field expansion plan and has earmarked Rs 2 bn for the
same. It should be noted that the company has a strong cash flow
position, it generated Rs 9 bn from operation in FY04 and is virtually
EXAMPLES
Super Splendor
This Bike comes with 125 cc new generation quantum core engine
with an output of 9 bhp (6.7 kw). Its relaxing seating arrangement with
other comfort features like less strain while clutching and declutching,
low noise and less vibration engine etc, makes it more market friendly
bike.
For the convenience of the biker, there are few features included here
are trip meter, peep hole, large utility box etc. Some safety features
included here are pass switch and push cancel indicator switch,
muffler with heat shield etc.
Splendor +
kmph, this bike is giving the optimum satisfaction for long journey.
Its double cradle frame gives the steadiness in biking. Its wider 1230
Splendor NXG
Splendor NXG comes with a new engine and pioneering features and
high beam in the headlamp and its strength is not dependent on the
engine rpm. Circuitry for the low beam and pilot lamp has also been
engine rpm.
Geographical Segmentation
in these countries.
Demographic Segmentation
efficiently.
Psychographic Segmentation
in this regard.
The four groups with higher resources are:
products.
established brands.
functional purpose.
Behavior Segmentation: -
response to a product.
Decision Roles:
and specification of the people who play these roles for specific
products and services are vital for marketers. This is especially
Behavioral Variables:
user status, usage rate, buyer readiness stage, loyalty status, and
segments.
Market Targeting: -
criteria:
develop cars for people who are less four feet tall.
served.
segments.
Actionable, Effective programs can be formulated for attracting
Single- Segment
Concentration
M1 M2 M3
P1
P2
P3
Selective Specialization
M1 M2 M3
P1
P2
P3
Product Specialization
M1 M2 M3
P1
P2
P3
Market Specialization
M1 M2 M3
P1
P2
P3
M1 M2 M3
P1
P2
P3
segment leadership, the firm can earn a high return on its investment.
firm’s risk. When Procter & Gamble launched crest White strips, initial
target segments included newly engaged women and brides to be as
specific product area. The downside risk is that the product may be
channel for additional products the customer group can use. The
downside risk is that the customer group may suffer budget cuts or
shrink in size.
Full market coverage: - The firm attempts to serve all customer
groups with all the products they might need. Only very large firms.
Additional considerations
targets.
must not know to what segment(s) the firm will move into next.
reminded they are eating alone. Elderly consumers who don’t feed
their age may not appreciate products that identify them as “old”
Positioning: -
be profitably served.
Product:-
Core Product: -
Basic Product: -
Expected Product: -
6.
Augmented Product: -
The augmented products of Hero Honda Splendor are: -
Pricing Strategy: -
Penetration Pricing: -
The price charged for products and services is set artificially low in
increased. This approach was used by France Telecom and Sky TV.
Hero Honda use National Segment and low income persons so they
Price Skimming: -
Charge a high price because you have a substantial competitive
price tends to attract new competitors into the market, and the price
manufacturers were tempted into the market and the watches were
skimming are the four main pricing policies/strategies. They form the
approaches to pricing.
Promotion: -
‘Below The Line is a common technique used for touches and feel
Line techniques ensure recall of the brand while at the same time
radio advertising, print advertising and internet banner ads. This type
and internet.
Hero Honda used Above the Line Promotion because in the Above
1. Local
2. National
3. Regional
4. International
Hero Honda used National Market for sale the Hero Honda Splendor.
Considering all facts of marketing in a unique way for proper
Marketing threats
MANAGING RISK IS
quick return to robust growth is unlikely, and this could affect Hero
growth was close to zero per cent by year-end. However, high fiscal
deficit and rising food prices could push up inflation again during the
this could impact the profitability of this segment. At the same time,
segment.
• Input costs: Prices of critical inputs came down during the year
bottom levels, and may start perking up in the second half of the
Hero Honda was the torchbearer for the two-wheeler industry during
the year in review. It sold more two wheelers during the year than the
market, which account for more than 95 per cent of Hero Honda's
observ
control
e
WEBSITE:
WWW.HEROHONDA.COM
WWW.HEROCYCLES.COM
WWW.WEKIPEDIA.COM
WWW.TIMESOFINDIA.COM
HTTP://WWW.THEHINDUBUSINESSLINE.COM
HTTP://ECONOMICTIMES.INDIATIMES.COM/SEARCH.CMS
WWW.INDIAINFOLINE.COM
HTTP://WWW.FADAWEB.COM/INDIA
BOOKS:
AUTOCARE
OVERDRIVE
INDIA AUTO
Introduction:
This project discusses the "Marketing Strategies of Hero Honda". This project undertaken by us
is an attempt to understand, appreciate and develop a marketing strategy or plan. Through Hero
Honda CBZ, we have identified various processes involved in conceptualizing a marketing plan,
from consumer surveys, analysis of competitors, to segmentation. We chose Hero Honda CBZ as
our product of study because Hero Honda is the market leader in the motor cycle industry. Also
Hero Honda has developed different marketing strategies for different products based on the
target market. We chose CBZ because through CBZ, Hero Honda entered the four stroke
segment market. Hence choosing this product involved an insight into the development of a
marketing plan. Our project focuses on a few key areas:
Firstly, after a brief introduction of the company and the product, we have examined the various
strengths, weaknesses, opportunities and threats of our product .This gives an insight on the
external and internal environment our product is operating in .Thereafter we have developed a
SWOT matrix of CBZ.
Next, as the saying goes “Consumer is king”; through a consumer survey, we have tried to
understand the psychology and behavior of the motor cycle customer, in terms of buying roles,
decision making process, and purchase and post purchase behavior. Through this survey we have
also probed into the various factors, which would make CBZ a more popular product.
The third section of our report includes an analysis of the competitive forces in the motor cycle
industry according to Porter’s five forces model, identification of brand, industry, form and generic
competition faced by CBZ, activities of various competitors to understand its competitive scenario,
and also analysis of competitive strategies followed by Hero Honda.
Next, our report includes segmentation profile of our product by identifying the target market. The
profile includes behavioral, demographic and geographical factors. Finally, through the conclusion
we discuss our learning from the project undertaken.
Number of Pages of Project Report:66
Package Includes: Project Report
Project Format: Document (.doc)
Table of Contents of Project Report:
1. Executive Summary
2. Hero Honda
3. Cbz
4. Product Specifications
5. SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Swot Matrix
7. Customer Behavioural Analysis
8. The Competition
9. Industry Concept of Competition
10. Competition in the Motorcycle Industry For
11. Hero Honda Cbz
12. Analysis In Terms Of Porter’s 5 Forces Model
13. Analyzing the Competition
14. Customer Value Analysis
15. Segment Profile of Target Market for Cbz
16. Conclusion
17. References