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INDEX
CONTENT
INTRODUCTION
OBJECTIVE S OF STUDY
CHAIR MAN IF HERO MOTOCORP
INDUSTRY SCENARIO
PRODUCT SPECIFICATION
SALES PERFORMANCE
WHAT IS MARKETING
WHAT IS STRATEGY
WHAT IS MARKETING STRATEGY
SWOT ANALYSIS
SEGMENTATION OF HERO MOTOCORP
PRODUCT
PRICING STRATEGY
PROMOTION
CONSUMER BEHAVIOR ANALYSIS TOWARDS
HERO MOTOCORP PRODUCT
WHAT IS MARKET ANALYSIS
RESEARCH & DEVELOPMENT
POLICIES OF HERO MOTOCORP
COMPITITORS OF HERO MOTOCORP
PORT ANALYSIS OF HERO MOTOCORP
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CUSTOMER VALUE ANALYSIS TOWARDS HERO MOTOCORP
RESEARCH METHODOLOGY
FACTS & FIGURES
QUESTIONNAIRE
RECOMMENDATIONS
BIBLOGRAPHY
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INTRODUCTION
OVERVIEW OF AUTOMOBILE SECTOR IN INDIA:-
The Automobil e sector is one of the fastest growing manufactu r ing sectors in India.
In the 90s the industry witnessed an average growth rate of above 20 percent.
Indian Automobile Industry is characterized by a very high percentage (75 per cent) of two
wheeler production, ranking second only to Taiwan.
The world leaders in the sector are evincing keen interest in establishing manufacturing
facilities for manufacturing and assembling components.
apolitically stable and vibrant State, Andhra Pradesh is centrally located with the support of
seaports, international airports, assured and reliable power supply, abundant water, broad base of
auto component manufacturers, highly trained, skilled and disciplined manpower and is
therefore, the preferred location for Automobile industries.
The interest of the state has been duly noted by Global Auto Majors, who have indicated their
interest to consider Andhra Pradesh for establishing manufacturing facility.
The Government is also formulating an Auto Policy, which would give a proper direction to the
growth of the sector.
There are more than 20 autocomponent manufacturing companies in the State, manufacturing
components such as grey-iron castings, precision aluminum castings, leaf springs, oils and
lubricants, diesel fuel injection equipment, electronics and auto electronics and auto electrical,
front axles, gears, forging, machined components, pressed metal components, pistons, cylinder
liners ,nozzles, delivery valves, starter motors, alternators, electronic regulators, high pressure
die castings, clutch covers, fuel filters ,etc.
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ABOUT THE COMPANY:-
Hero moto corp has a reputation of being the most fuel-efficient and the largest selling Indian
motorcycle. Its commitment of providing the customer with excellence is self-evident. A rich
background of producing high value products at a reasonable price led the world's
l a r ges t manuf ac t u r e r o f mot o r cyc l es t o co l l abor a t e w i t h t he wor l d ' s
la rge st b ic ycl e manufacturer. Hero Gro up t ha t re sul te d in th e se t t i ng u p of
Her o mot ocor p Mot o r s L t d .
A re l a t ions h i p so harmonious that Hero motocorp has managed to achieve indigenization
of over 95 percent, a Honda record world wide. Tactical promotions and excellent
marketing helped Hero motocorp establish itself as an intelligent purchase. Its unique
features like fuel conservation, safety riding courses and mobile workshops helped the group
reach in the interiors of the country. Finance services helped facilitate purchase, as did an
efficient dealer network across the country. Well -entrenched in the domestic market, Hero
motocorp Motors Ltd . turned its att ent ion overseas, and exports have been steadily on the
rise
Hero MotoCorp Ltd. (Formerly Hero motocorp 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 Motors Limited. The company is the largest two wheeler manufacturer in India. And also has been referred to as the world's biggest manufacturer of 2-wheeled motorized
vehicles since 2001, when it produced 1.3 million motorbikes in a single year.
Most Respected companies list has Hero motocorp Motors ranked at 108.
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In 2010, it was reported that Honda planned to sell its stake in the venture to theMunjal family.
Its main Models are
1. Cbz extreme2. Splender +3. Passion +4. Cd 05. Passion pro.
VISION OF THE COMPANY
The Legend of Hero motocorp
What started out as a Joint Venture between Hero Group, the worlds largest bicycle
manufacturers and the Honda Motor Company of Japan, has today become the
Worlds single largest two wheeler Company. Coming into existence on January 19,
1984, HeroMotors Limited gave India nothing less than a revolution on two-wheels,
made even more famous by the Fill it Shut it Forget it campaign. Driven by the trust of
over 5million customers, the Hero motocorp product range toda y commands a market
share of 48% making it a veritable giant in the industry. Add to that technological excellence,
an expensive dealer network, and reliable after sales service, and you have one of
the most customer-friendly companies. In the words of Mr. Brijmohan Lal Munjal, the
Chairman and Managing Director, W e wi l l cont i nue t o make every e f f or t
required for the development of the motorcycle industry, through new
product development, technological innovation, investment in equipment and
facilities and through efficient management.
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MISSION OF THE COMPANY:-
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.
PERFORMANCE 2011-2012:-
Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent
Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per share on
face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54.
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TERMINATION OF HONDA JOINT VENTURE:-
In December 2010, the Board of Directors of the Hero Honda Group have decided to terminate
the joint venture between Hero Group of India and Honda of Japan in a phased manner. The
Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint
venture Hero Group could not export to international markets (except Sri Lanka) and the
termination would mean that Hero Group can now export. Since the beginning, the Hero Group
relied on their Japanese partner Honda for the technology in their bikes. So there are concerns
that the Hero Group might not be able to sustain the performance of the Joint Venture alone.
HISTORY:-
Hero Moto Corp was started in 1984 as Hero Honda Motors Ltd.
1956 -- Formation ofHero Cycles in Ludhiana(majestic auto limited)
1975 -- Hero Cycles becomes largest bicycle manufacturer in India.
1983 -- Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984 -- Hero Honda Motors Ltd. incorporated
1985 -- Hero Honda motorcycle CD 100 launched.
1989 -- Hero Honda motorcycle Sleek launched.
1991 -- Hero Honda motorcycle CD 100 SS launched.
1994 -- Hero Honda motorcycle Splendor launched.
1997 -- Hero Honda motorcycle Street launched.
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1999 -- Hero Honda motorcycle CBZ launched.
2001 -- Hero Honda motorcycle Passion and Hero Honda Joy launched.
2002 -- Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.
2003 -- Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor, Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.
2004 -- Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.
2005 -- Hero Honda motorcycle Super Splendor, Hero Honda motorcycle CD Deluxe, Hero
Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda
Scooter Pleasure.
2007 -- New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero
Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus
and Hero Honda motorcycle Hunklaunched.
2008 -- New Models of Hero Honda motorcycles Pleasure, CBZ Xtreme, Glamour, Glamour
Fi and Hero Honda motorcycle Passion Pro launched.
2009 -- New Models of Hero Honda motorcycle Karizma:Karizma - ZMR and limited
edition ofHero Honda motorcycle Hunklaunched
2010 -- New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda
motorcycle Hunkand New Hero Honda Motorcycle Super Splendor launched.
http://en.wikipedia.org/wiki/Hero_Honda_CBZhttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_CBZ_Xtremehttp://en.wikipedia.org/wiki/Hero_Honda_Hunkhttp://en.wikipedia.org/wiki/Hero_Honda_Karizmahttp://en.wikipedia.org/wiki/Hero_Honda_Passionhttp://en.wikipedia.org/wiki/Hero_Honda_CBZ -
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2011 -- New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ
Xtreme, Karizma launched.
New licensing arrangement signed between Hero and Honda.
August 2011 -- Hero and Honda part company, thus forming Hero MotoCorp and Honda
moving out of the Hero Honda joint venture.
November 2011 -- Hero launched its first ever Off Road Bike Named Hero "Impulse".
OBJECTIVES OF THE STUDY:-
1.To study the market strategies followed by Hero motocorp.
2 .To f i nd ou t t he t o t a l mar ke t s ha r e o f Her o mot ocor p .
3.To find out the promotional tools used by Hero motocorp.
4.To find out the customer preference towards the product of the company.
5 . T o s t u d y t h e f e a t u r e s o f d i f f e r e n t b r a n d s t h a t g i v e s a g o o d i d e a
o f v a r i o u s products and services offered by the company.
6.To study the brands of Hero motocorp& consumers perception about the product
of hero motocorp.
7 .To under s t and t he compe t i t i ve env i r onmen t i n wh i ch t he company i s
o p e ra t i n g and is desired to meet customer need and satisfaction.
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CHAIRMAN OF HERO MOTOCORP
Dr.BrijmohanLallMunjal
"Don't dream if you can't fulfill your dreams''BrijmohanLallMunjal is often fond of saying.
The founder and patriarch of the $3.2 billion Hero Group is your classic first generation
entrepreneur. He is a man who started small, dreamt big and used a combination of grit andperseverance to create one of the country's largest corporate groups and the World's No.1 Two
Wheeler Company.
Instinctive from a young age, BrijmohanLall made a rather unusual start in life. Around the time
when the freedom movement in India was taking shape in the late 1920s, he walked into a newly
opened Gurukul (Indian heritage school) near his home in Kamalia (now in Pakistan). He was
only six years old then.
Thus began an extraordinary tale of courage and perseverance. Brijmohan began his business
story after partition in 1947, when he and his brothers relocated to Ludhiana. The family set up a
company that provided poor people with basic transport (cycles). Three decades later, as India
evolved, he added a second crucial chapter - which visualized affordable and technologically
superior transport to millions of middle class Indians. The rest is history.
Building Relationships
When Brijmohan and his brothers started out, there was no concept of organized dealer
networks. Companies just produced, and most dealers functioned like traders. Brijmohan
changed the rules of the business by trusting his gut instincts; introducing business norms that
were ahead of their time, and by investing in strategic relationships. Brijmohan built a series of
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bonds and networks with hundreds of family members, vendors, dealers and employees.
Much like the Japanese keiretsu system, these networks are now the glue that holds the
Hero Group together.
"Thanks to the relationships that we have nurtured so passionately in the Hero Family, theyounger generations of some of our bicycle dealers have become dealers of Hero MotoCorp.
These relationships have survived through generations - through bad times and good times'' the
patriarch now reminiscences.
Besides bonding with his vendors and dealers, Brijmohan has been personally responsible for
kindling a spirit of entrepreneurship amongst his employees, and today, 40 of his former
employees are successful entrepreneurs.
Staying Ahead
Though not technically qualified in the conventional sense, few of his contemporaries have
understood the dynamics of technology better than BrijmohanLall has. He could always visualize
the applicability of technology before others could. For example, in the 1980s, when all two-
wheeler companies in India opted for two-stroke engine technology, Brijmohan preferred a four-
stroke engine - a technology that dramatically increased fuel efficiency and reduced maintenance
costs. This technology was one of the biggest reasons for Hero MotoCorp's stupendous success.
A Corporate Citizen
A frugal upbringing and a value system modeled on the famous Gurukul system - which
stressesthe sanctity of the teacher-pupil relationship - imbibed in Brijmohan a strong sense of
social commitment and responsibility.
There is a special place in his heart for Ludhiana, the city where he took roots. Today, Ludhiana
is a modern, bustling city, but Brijmohan has played no mean role in its evolution. Several
schools and educational institutions in Ludhiana owe their existence to the Munjal family.
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The Ludhiana Stock Exchange owes its existence to Brijmohan's vision as does the
Ludhiana Flying Club. He's also set up the not-for-profit Dayanand Medical College and
Hospital-an institute now rated as one of the best medical colleges in India, in terms of
infrastructure, quality of staff and alumni profile.
In and around Dharuhera, near the first Hero MotoCorp plant, Brijmohan and his family have left
their stamp of philanthropy. The Raman Kant Munjal Foundation - which Brijmohan set up in
memory of his eldest son, today runs a higher secondary school and a very modern and well-
equipped 100-bed hospital at Dharuhera. The group has also adopted numerous villages and
provides education, vocational training, drinking water, roads, streetlights and sewerage.
ARTICLE OF HERO MOTOCORP NEWS PAPERS:-
Times of India
Hero, Honda split terms finalized
NEW DELHI: It's finally splitsville for Hero Honda, one of corporate India's oldest and most
successful joint ventures , with the two founding partnersIndia's Munjal family and Japan'sHonda Motor Corpagreeing to part ways and terminate the 26-year-old relationship due to
unresolved differences and ambitious independent plans.
Sources in the know said most of the terms of the deal, which will see Honda selling its 26%
stake to the Munjal family, have been finalized and the matter will now be taken up by Hero
Honda's board on Thursday. Top officials of Honda are arriving here to attend the board meeting
, a source said.
he sources added that the Japanese auto major will exit the JV through a series of off market
transactions by giving the Munjal familythat currently holds 26% stake in the companyan
additional 26%. Honda, which also has an independent fully-owned two wheeler subsidiary
Honda Motorcycle and Scooter India (HMSI)will exit Hero Honda at a discount and get over
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$1 billion for its stake. The discount will be between 30% and 50% to the current value of
Honda's stake as per the price of the stock after the market closed on Wednesday.
The Munjal family plans to compensate Honda through high royalty payouts, which could
double to nearly 6% of net sales. However, key financial institutions have objected to this move,
saying that the deal could favour the Munjals but be detrimental to other shareholders.
Spokespersons for Hero Honda and the Munjal family refused to comment on the development .
Sources said as per the arrangement , it will be a two-leg deal. In the first part, the Munjal
family, led by Brijmohan Lal Munjal group, will form an overseas-incorporated special purpose
vehicle (SPV) to buy out Honda's entire stake, which will be backed by bridge loans. This SPV
would eventually be thrown open for private equity participation and those in the fray include
Warburg Pincus, Kohlberg Kravis & Roberts ( KKR), TPG, Bain Capital and Carlyle.
"The PEs will take between 50-60 % stake in this entity , giving them just under 15% stake in the
main company Hero Honda, which would soon sport a new name," the sources said.
Hero Honda, credited with putting the Indian middleclass on wheels, defied its humble
beginnings to quickly emerge as the world's biggest two-wheeler maker, also ending the
stronghold of Bajaj scooters in the country.
Tech, spares major irritants:-
Hero Honda's lowcost and highly-fuel efficient bikes (remember the classic 'Fill it, Shut it,
Forget it' campaign ) quickly emerged as the most-popular and convenient mode of transport,
catapulting the company into the global league of two-wheeler biggies.
However, it was the rising differences between the two partners that gradually emerged as an
irritant. Differences had been brewing for the last many years over a variety of issues, ranging
from Honda's reluctance to fully and freely share technology with Hero (despite a 10-year
technology tie-up that expires in 2014) as well as Indian partner's uneasiness over high royalty
payouts to the Japanese company. Another major irritant for Honda was the refusal of Hero
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Honda (mainly managed by the Munjal family) to merge the company's spare parts
business with Honda's new fully-owned subsidiary Honda Motors India (HMI).
Sources said a large number of people from the Munjal clan are also suppliers to Hero Honda,
giving undue advantage and benefit to the Indian promoter. But to the discomfiture of the
Munjals, Honda wanted a more competitive approach to component procurement , that may have
seen the end of many of these suppliers.
"The differences became too big to allow a harmonious existence," the sources said.
Simultaneously , Honda's ambitious plans for its two-wheeler subsidiary HMSI also gave the
confidence to the company to go it alone. HMSI has singlehandedly revived the scooter market
in India and has been gradually gaining ground in motorcycles as well. A bullish Honda wanted
a solo say in the running of its business, and HMSI's success gave it the confidence to go for a
split.
HMSI has seen sales growing 42% in April-November this fiscal and it is setting up a second
plant-with a peak capacity of 1.2 million unitsto boost operations. Its plant at Manesar has a
capacity of 1.6 million units. Honda is expected to launch a slew of new models, including
lowpriced bikes to challenge Hero Honda and other competitors . The exit of Honda has,
however, beaten the Hero Honda scrip as investors feel that it may not have the wherewithal toindependently provide technology support.
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LAUNCHING OF SCOOTER LEAP:-
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INTRODUCTION TO HERO IMPULSE:-
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PRODUCT SPECIFICATIONS
HERO IMPULSE:
Engine Type Air cooled, 4- stroke single cylinder OHC , Self start
Displacement 149.2cc 5
Max. Power 9.7 kW (13.2 Ps) @ 7500 rpm
Max. Torque 13.4 N-m @ 5000 rpm
Ingnition D.C - CDI Ignition System
Transmission & Chassis Gear box 5 Speed constant mesh
Suspension Front Telescopic Hydraulic Shock Absorbers
Rear Swing Arm with Mono Suspension with Nitrox
Brakes Front Brake Dia 240 mm Disc
Rear Brake Drum Internal expanding shoe type (110 mm)
Wheels &Tyres Tyre Size Front 90 / 90 x 19 - 52 P
Tyre Size Rear 110 / 90 x 17 - 60 P
Electricals Battery 12 V - 4 Ah, MF Battery
Head Light 12 V - 35 W / 35 W - Halogen Bulb (Multi -Reflector Type)
Tail Stop Lamp 12V - 0.5 W / 4.1 W LED Lamp
Turn Signal Lamp 12 V - 10 W (Amber Bulb) x 4 nos (Multi-Reflector-Clear
Lens)
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Dimensions Wheelbase 1360mm
Ground Clearance 245 mm
Fuel Tank Capacity 11.1 Litre (Min) - 2.6 Litre (Usable Reserve)
CBZ EXTREME
Engine Type Air cooled, 4 - stroke single cylinder OHC
Displacement 149.2 cc
Max. Power 10.6 kW (14.4 PO@ 8500 rpm)
Max. Torque 12.80 N m @ 6500 rpm
Bore x Stroke 57.3 x 57.8 mm
Carburettor CV type with carburetor controlled variable ignition
Starting Self Start
Ingnition AMI - Advanced Microprocessor Ignition SyTransmission &Chassis
Cluch Multiplate wet
Gear box 5 Speed constant mesh
Chassis Type Tabular, diamond type
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Front Telescopic hydraulic type
Rear Rectuglar swing arm with 5 step adjustable gas reservior
suspension
Brakes Front Brake Disc Dia 240 mm
Rear Brake Disc DiscDia 220 mm
Rear Brake Drum Drum internal expanding shoe type (130 mm)
Wheels &Tyres Rim Size Front 18 x 1.85, 5 Spoke cast wheel
Rim Size Rear 18 x 2.15, 5 Spoke cast wheel
Tyre Size Front 80 / 100 x 1847 P
Tyre Size Rear 100 / 90 x 1856 P
Electricals Battery 12 V -4 Ah, MF battery
Head Light 12 V -35 WI 35W - Halogen bulbTrapeze
Tail Stop Lamp 12 V -0.5 WI 4.1W (LED lamps - Clear lens)
Turn Signal Lamp 12 V -21 W (Amber bulb) x 4 nos. (MFR - CI)
Dimensions Length 2080mm
Width 765mm
Height 1145mm
Wheelbase 1325 mm
Ground Clearance 145 mm
Fuel Tank Capacity 12.1 litre (Min)
Reserve 1.5 litre (Usable reserve)
Kerb Weight 148 kg (Brakes - FR/ RR --> Disc/ Drum)
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HONDA PLEASURE:-
Type Air-cooled, 4-stroke single cylinder OHC
Displacement 102 cc
Max. Power 5.03 KW @ 7000 RPM
Max. Torque 7.85 Nm @ 5000 RPM
Bore x Stroke 50.0 x 52.0 mm
Compression Ratio 9.0 : 1
Starting Self start
Ingnition CDI
Transmission & ChassisGear box Variomatic drive (2.510.81)
Chassis Type High rigidility under bone type
SuspensionFront Bottom link with spring-loaded hydraulic damper
Rear Swing arm with spring-loaded hydraulic damper
BrakesFront Brake Internal expanding shoe type (130 mm)
Rear Brake Disc Internal expanding shoe type (130 mm)
Wheels & TyresRim Size Front 10 x 2.15
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Rim Size Rear 10 x 2.15
Tyre Size Front 3.50 x 104 PR / 51 J (with tuff up tube)
Tyre Size Rear 3.50 x 104 - 4PR / 51 J (with tuff up tube)
ElectricalsBattery 12V-4 Ah
Head Light 12V35W / 35WHalogen bulb (Multireflector type)
Tail Stop Lamp 12V5 / 21 W (MultiReflector)
Turn Signal Lamp 12V21W (Amber bulb) x 4 nos ( Multireflector, clear lens)
DimensionsLength 1750 mm
Width 705 mm
Height 1100 mm
Wheelbase 1240 mm
Saddle Height 795 mm
Ground Clearance 125 mm
Fuel Tank Capacity 5 ltrs. ( Min)
Kerb Weight 104 Kg
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PASSION PRO:-
Type Air-cooled, 4-stroke single cylinder OHC
Displacement 97.2 cc
Max. Power 5.74 kW (7.8 Ps) at 7500 rpm
Max. Torque 0.82 kg-m (8.04 N.m) at 4500 rpm
Bore x Stroke 50.0 x 49.5 mm
Starting Kick start / Self start
Ingnition DCDigital CDI
Transmission & Chassis
Cluch Multi-plate wet
Gear box 4 Speed constant mesh
Chassis Type Tubular double cradle frame
Suspension
Front Telescopic hydraulic shock absorbers
Rear Swing arm with hydraulic shock absorber
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Brakes
Front Brake Disc BrakeDia 240 mm
Rear Brake Drum Internal expanding shoe type (130 mm)
Wheels & Tyres
Rim Size Front 18 x 1.60, Spoke wheels / Cast wheel
Rim Size Rear 18 x 1.60, Spoke wheels / Cast wheel
Tyre Size Front 2.75 x 184 PR / 42 P
Tyre Size Rear 3.00 x 186 P / 52 PR
Electricals
Battery 12V-3 Ah
Head Light 12V35W / 35WHalogen bulb, trapeziodal, MRF
Tail Stop Lamp 12V5 / 10 W (Twin bulb), MFR
Turn Signal Lamp 12V10W (Amber bulb) x 4 nos MFR, clear lens
Dimensions
Length 1980 mm
Width 725 mm
Height 1075 mm
Wheelbase 1235 mm
Saddle Height 795 mm
Ground Clearance 165 mm
Fuel Tank Capacity 12.8 ltrs. ( Min)
Reserve 1 ltrs. ( Usable reserve )
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GREEN MANUFACTURING:-
Sustainable development lies at the core of Hero MotoCorp's vision of being one of India's most
environment friendlycompanies.
Hero MotoCorp believes that to create a sustainable enterprise, it is critical to strike the right
balance between business,mankind and nature.
GREEN SUPPLY CHAIN:-
The process of sustainable development is incomplete without involving the company's supply
chain. Hence Hero MotoCorp has therefore put together a "Green Dealer Development Program"
for the front end and a "Green Vendor Development Program" for the backend of the supply
chain.
In each of these programs, the partners' are made aware of the importance of caring for the
environment and are encouraged to manage their material resources, industrial wastes, energy
resource, pollution and other effluents based on a number of pre-determined parameters.
Hero MotoCorp supports all its partners in the Green Supply Chain venture by:-
Developing required competencies Sharing knowledge Providing technical support
Through this program Hero MotoCorp aims to generate sufficient momentum within the
industry, and looks forward to the day when the entire automotive industry is made up on a
seamless green chain.
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Marketing practice tended to be seen as a creative industry in the past, which
included advertising, distribution and selling. However, because the academic study of
marketing makes extensive use of social sciences, psychology, sociology, mathematics,
economics, anthropology and neuroscience, the profession is now widely recognized
as a science ,allowing numerous universities to offer Master-of-Science (MSc)
programmers.
The overall process starts with marketing research and goes through market
segmentation, business planning and execution, ending with pre- and post-sales promotional
activities.
It is also related to many of the creative arts. The marketing literature is also adept atRe-
inventing itself and its vocabulary according to the times and the culture.
What is strategy?
Strategy
, a word ofmilitary origin, refers to a plan of action designed to achieve a particular goal. In
military usage strategy is distinct from tactics, which are concerned with the conduct of an
engagement, while strategy is concerned with how different engagements are linked.
How a battle is fought is a matter of tactics: the terms and conditions that it is fought on and
whether it should be fought at all is a matter of strategy,
which is part of the four levels of warfare:
political goals or grand strategy, strategy, operations, and tactics.
Building on the work of many thinkers on the subject, one can define strategy as " a
comprehensive way to try to pursue political ends, including the threat or actual use of
force, in a dialectic of willsthere have to be at least two sides to a conflict.
http://en.wikipedia.org/wiki/Militaryhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Objective_%28goal%29http://en.wikipedia.org/wiki/Military_strategyhttp://en.wikipedia.org/wiki/Tactic_%28method%29http://en.wikipedia.org/wiki/Grand_strategyhttp://en.wikipedia.org/wiki/Operation_%28military%29http://en.wikipedia.org/wiki/Tactichttp://en.wikipedia.org/wiki/Tactichttp://en.wikipedia.org/wiki/Operation_%28military%29http://en.wikipedia.org/wiki/Grand_strategyhttp://en.wikipedia.org/wiki/Tactic_%28method%29http://en.wikipedia.org/wiki/Military_strategyhttp://en.wikipedia.org/wiki/Objective_%28goal%29http://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Military -
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These sides interact, and thus a Strategy will rarely be successful if it shows no
adaptability.
In game theory, strategy refers to one of the options that a player can choose. That is ,every
player in anon-cooperative game has a set of possible strategies, and must choose one of the
choices. A strategy must specify what action will happen in each contingent state of the game
E.g.
If the opponent does A, then take action B, whereas if the opponent does C, take action
Strategies in game theory may be random (mixed) or deterministic (pure). That is, in some
games, players choose mixed strategies .Pure strategies can be thought of as a special case of
mixed strategies, in which only probabilities 0 or 1 are assigned to actions.
http://en.wikipedia.org/wiki/Game_theoryhttp://en.wikipedia.org/wiki/Player_%28game%29http://en.wikipedia.org/wiki/Non-cooperative_gamehttp://en.wikipedia.org/wiki/Mixed_strategyhttp://en.wikipedia.org/wiki/Mixed_strategyhttp://en.wikipedia.org/wiki/Non-cooperative_gamehttp://en.wikipedia.org/wiki/Player_%28game%29http://en.wikipedia.org/wiki/Game_theory -
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Many companies cascade a strategy throughout an organization, by creating strategy
tactics that then become strategy goals for the next level or group. Each group is expected
to take that strategy goal and develop set of tactics to achieve that goal. This is why it is
important to make each strategy goal measurable. Marketing strategies are dynamic and
interactive. They are partially planned and partially unplanned.
SWOT Analysis of HERO MOTOCORP:-
SWOT analysis is strategic planning method used to evaluate the
Strengths,
Weaknesses,
Opportunities, and
Threats
Involved in projector in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are favorable and
unfavorable to achieve that objective.
The technique is credited to Albert Humphrey, who led a convention at Stanford University in
the 1960s and 1970s using data from Fortune 500companies.A SWOT analysis must first start
with defining a desired end state or objective. A SWOT analysis may be incorporated into the
strategic planning model. Strategic Planning has been the subject of much research.
Strengths: characteristics of the business or team that give it an advantage over others in the
industry.
Weaknesses: are characteristics that place the firm at a disadvantage relative to others.
Opportunities: external chances to make greater sales or profits in the environment.
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Segmentation of Hero motocorp:-
Geographical Segmentation
Geographic Segmentation calls for division of the market into different geographical units such
as nations, states, regions, countries, cities, or neighborhoods. In the South Asian context,
geographic segmentation assumes importance due to variations in consumer preferences and
purchase habits across different regions, across different countries, and across different states in
these countries
Demographic Segmentation
In Demographic Segmentation, we divide the market into groups on the basis of variable such as
age, family size, family life cycle, income, occupation, education, religion, race, generation,
nationality and social class. One reason demographic variables are so popular with marketers in
that theyre often associated with consumer needs and wants. Another is that theyre easy to
measure. Even when we describe the target market in non-demographic terms (say, by
personality type), we may need the link back to demographic characteristics in order to estimate
the size of the market and the media we should use to reach it efficiently
Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand
consumers. In psychographic segmentation, buyers are divided into different groups on the basis
of psychological/personality traits, lifestyle, or values. People within the same demographic
group can exhibit very different psychographic profiles. Values and lifestyles significantly affect
product and brand choice of consumers. Religion has a significant influence on values and
lifestyles. The strict norms that consumers follow with respect to food, habits or even dress codes
are representative examples in this regard.
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ARTICLE OF SEGMENT OF HERO MOTO CORP I N TIMES IN INDIA
Hero MotoCorp sales dip 30% this year in premium motorcycle segment.
Hero MotoCorp which is well known for premium motorcycle models such as CBZ, Karizma
and Hulk also launched Impulse in the 125cc category recently. However, large scale
competition in the two wheeler segment is causing a devastating effect on Hero MotoCorp
premium bike sales for the year. In fact, sales have dipped over 30% in last 11 months.
Hero MotoCorp was formed after split between Hero and Honda Motor Corporation inDecember 2010. Since then premium bike sales of the two wheeler company has been steadily
decreasing and 2011 has been a bad year where sales were concerned.
While Hero MotoCorp sold 34,116 units in January 2011 November sales accounted for only
23,860 units. This comes at a time when competitors are recording double digit sales. Bajaj
Auto, sales for the year has been positive with sales increase from 1.01 lakh units in January to
1.34 lakh units while Honda too have sold over 59,267 units in November 2011.
Hero MotoCorp sales have dipped in the 125cc and 250cc segments which are considered the
fastest growing segments in India. Increased demand is shown by customers especially following
rising fuel prices and high interest rates being charged for four wheelers. Hero MotoCorp
however, managed to record stronger sales in the 75cc to 125 cc segments where they sold 4.6
lakh units in November as compared to 94,343 units sold by Bajaj Auto and 12,478 units sold by
HMSI.
http://www.rushlane.com/latest/bikes-news/hero-bikes-newshttp://www.rushlane.com/latest/auto-news/honda-carshttp://www.rushlane.com/latest/bikes-news/bajajhttp://www.rushlane.com/latest/bikes-news/bajajhttp://www.rushlane.com/latest/auto-news/honda-carshttp://www.rushlane.com/latest/bikes-news/hero-bikes-news -
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Full market coverage: -
The firm attempts to serve all customer groups with all the products they might need. Only very
large firms. Such as Microsoft (software market),General motors (vehicle market), and coca-
cola (nonalcoholic beverage market), can undertake a full market coverage strategy. Large firms
can cover a whole market in two broad ways: through undifferentiated marketing or
differentiated marketing.
Additional considerations:-
Two other considerations in evaluating and selection segments are segment-by-segmenting
vision plans and ethical choice of market targets.
Segment-by-segment invasion plans: -
A company would be wise to enter on segment at a time. Competitors must not know to what
segment(s) the firm will move into next. Segment-by-segment invasion plans are illustrated three
firms, A, B, and C, have specialized in adapting computer systems to the needs of airlines,
passenger transport, and goods transport companies. Company A meets all the computer needs of
airlines.
Ethical choice of market targets: -
Marketers must target segments carefully to avoid consumer backlash. Some consumers may
resist being labeled. Singles may reject single. Serve food packaging because they dont want to
be reminded they are eating alone. Elderly consumers who dont feed their age may not
appreciate products that identify them as old market targeting also can generate public
controversy
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SEGMENTATION, TARGETING & POSITIONING:-
From the current segmentation, targeting & positioning and consumer surveys we found that our
client has targeted the following segments:
Congested areas of urban cities.
Males/Females between the age group of 18-36
Middle class people , mostly officials & executives
The client analysis from our questionnaire it was found that our client has targeted the right
segment HHML & TVS is overlooking one feature in bike which is its low maintenance cost and
reliability (i.e. less chances of breakdown) which is absent in its competitors. Therefore ,in order
to meet the sales target, two options are available with the client; one is to redesign the bike and
second is to reposition the bike as Bike with one time investment. Since redesigning of bike
may involve a big task and huge investment therefore were commended repositioning the bike.
Positioning: -
Positioning is the act of designing the companys offering and image to occupy a distinctive
place in the minds of the target market, the goal is to locate the brand in the minds of consumers
to maximize the potential benefit to the firm. A good brand positioning helps guide marketing
strategy by clarifying the brand essence, what goals it helps the consumer achieves, and how it
does so in a unique way. Everyone in the organization should under- stand the brand positioning
and use it as context for making decisions.
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Competitive Frame of Reference:-
A starting point in defining a competitive frame of reference for a brand positioning is to
determine category membership-the products or sets of products with which a brand competes
and which function as close substitutes. Competitive analysis will consider a whole host of
factors-including the resources, capabilities and likely intension of various other firms-in
choosing those markets where consumers can be profitably served.
Product:-
Core Product: -The core product or benefit of Hero moto corp Splendor is Traveling and saving
the time by reach on desire place at right time.
.Basic Product: -The basic product of Hero motocorp splendor are Engine, Handle, Shockers,
Wheels, Gear box and chain set etc.
Expected Product: -The expected products of Hero motocorp splendor are: -1.It should be 5
gear boxes.2.It should be 90 Kmpl mileages.3.It should be 120 Km/hour Maximum speeds.4.It
should be disk brake or power brake.5.It should be steel body.
Augmented Product: -The augmented products of Hero motocorp Splendor are: -
1.It provides monthly check up for decrease the pollution.
2.It provides fast service of the product.
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Pricing Strategy: -
Penetration Pricing: -
The price charged for products and services is set artificially low in order to gain market share.
Once this is achieved, the price is increased. This approach was used by France Telecom and Sky
TV. Hero motocorp Used penetration pricing strategy because that time Hero motocorp use
National Segment and low income persons so they used penetration strategy.
Price Skimming: -
Charge a high price because you have a substantial competitive advantage. However, the
advantage is not sustainable. The high price tends to attract new competitors into the market, and
the price inevitably falls due to increased supply. Manufacturers of digital watches used a
skimming approach in the 1970s. Once other manufacturers were tempted into the market and
the watches were produced at a lower unit cost, other marketing strategies and pricing
approaches are implemented. Premium pricing, penetration pricing, economy pricing, and price
skimming are the four main pricing policies/strategies. They form the bases for the exercise.
However there areother important approaches to pricing.
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Promotion: -
Below the Line Promotion:
Below The Line is a common technique used for touches and feel products. Those consumer
items where the customer will rely on immediate information than previously researched items.
Below The Line techniques ensure recall of the brand while at the same time highlighting the
features of the product.
Above The Line Promotion: -
Above the line (ATL) is an advertising technique using mass media to promote brands. Major
above-the-line techniques include TV and radio advertising, print advertising and internet banner
ads. This type of communication is conventional in nature and is considered impersonal to
customers. The ATL strategy makes use of current traditional media: television, newspapers,
magazines, radio, outdoor, and internet .Hero motocorp used Above the Line Promotion because
in the Above the Line promotion co. members used advertisement through Radio, T.V.,
Newspaper and Other media communications.
Place: -
Geographical Placing: -
Geographical placing of the product has divided into 4 marketsand these are: -
1.Local
2.National
3.Regional
4.InternationalHeromotocorp used National Market for sale the Hero motocorp Splendor.
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Consumer behavior analysis towards hero motocorp product:-
What is Consumer Behavior?
Consumer behavioris the study of when, why, how, and where people do or do not buy a
product. It blends elements from psychology, sociology, social anthropology and economics. It
attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioral variables
in an attempt to understand people's wants. It also tries to assess influences on the consumer
from groups such as family, friends ,reference groups, and society in general. Customer behavior
study is based on consumer buying behavior, with the customer playing the three distinct roles
of user, payer and buyer.
Relationship marketing is an influential asset for customer behavior analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer. A greater importance is also placed on consumer retention,
customer relationship management, personalization, customization and one-to-one marketing.
Social functions can be categorized into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrows possibility theorem
is used for a social function, social welfare function is achieved. Some specifications of the
social functions are decisiveness, neutrality, anonymity, monotonic ,unanimity, homogeneity and
weak and strong Pareto optimality .No social choice function meets these requirements in an
ordinal scale simultaneously. The most important characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation with the
ranks. Marketing provides services in order to satisfy customers. With that in mind, theproductive system is considered from its beginning at the production level, to the end of the
cycle, the consumer
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What is marketing analysis?
A Market analysis
is a documented investigation of a market that is used to inform a firm's planning activities
particularly around decisions of inventory, purchase, work force expansion/contraction, facility
expansion, purchases of capital equipment, promotional activities, and many other aspects of a
company.
Dimensions of market analysis
David A. Aaker outlined the following dimensions of a market analysis Market size(current and
future)
Market growth rate
Market profitability
Industry cost structure
Distribution channels
Market trends
Key success factors
The goal of a market analysis is to determine the attractiveness of a market, both now and in the
future. Organizations evaluate the future attractiveness of a market by gaining an understanding
of evolving opportunities and threats as they relate to that organization's own strengths and
weaknesses. Organizations use the findings to guide the investment decisions they make to
advance their success.
The findings of a market analysis may motivate an organization to change various aspects of its
investment strategy. Affected areas may include inventory levels, a work force
expansion/contraction, facility expansion, purchases of capital equipment, and promotional
activities
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Elements Market size:-
The most common measure of market size is the sum of the revenues of its participants. The
following are examples of information sources for determining market size:
Government data
Trade association data
Financial data from major players
Customer surveys
Market trends
Changes in the market are important because they often are the source of new opportunities and
threats. Moreover, they have the potential to dramatically affect the market size. Examples
include changes in economic, social, regulatory, legal, and political conditions and in available
technology, price sensitivity, demand for variety, and level of emphasis on service and support.
Market growth rate
A simple means of forecasting the market growth rate is to extrapolate historical data in to the
future. While this method may provide a first-order estimate, it does not predict important
turning points. A better method is to study market trend sand sales growth in complementary
products. Such drivers serve as leading indicators that are more accurate than simply
extrapolating historical data.
Market segments
Markets are not uniform. Therefore it is also important for investors to identify and evaluate the
various segments that make up the total market. This analysis helps organizations determine
which areas account for the greatest share of the market's growth and are more susceptible to
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change. This information, in turn, helps them pinpoint the most promising opportunities
within the overall market and guides the choice of specific investments
Market profitability
While different organizations in a market will have different levels of profitability, they are all
similar to different market conditions .Michael Porter devised a useful framework for evaluating
the attractiveness of an industry or market.
This framework, known as Porter's five forces, identifies five factors that influence the market
profitability:
Buyer power
Supplier power
Barriers to entry
Threat of substitute products
Rivalry among firms in the industry cost structure
The cost structure is important for identifying key factors for success. To this end, Porter's value
chain model is useful for determining where value is added and for isolating the costs. The cost
structure also is helpful for formulating strategies to develop a competitive advantage. For
example, in some environments the experience curve effect can be used to develop a cost
advantage over competitors.
Distribution channels
Examining the following aspects of the distribution system may help with a market analysis:
Existing distribution channels - can be described by how direct they are to the customer.
Trends and emerging channels - new channels can offer the opportunity to develop a
competitive advantage.
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Channel power structure - for example, in the case of a product having little brand
equity, retailers have negotiating power over manufacturers and can capture more
margins.
Success factors
The key success factors are those elements that are necessary in order for the firm to achieve its
marketing objectives. A few examples of such factors include:
Access to essential unique resources
Ability to achieve economies of scale
Access to distribution channels
Technological progress It is important to consider that key success factors may change over
time, especially as the product progresses through its life cycle
Applications
The literature defines several areas in which market analysis is important. These include:
sales forecasting, market research, and marketing strategy. Not all managers will need to conduct
a market analysis. Nevertheless, it is important for managers that use market analysis data to howanalysts derive their conclusions and what techniques they use to do so. Consumer Markets: at
less than 31 two- wheeler per 1,000 citizens in 2005, India is a poorly penetrated market for
motorcycles- even after accunting for a relatively low per capita income of around US$,3100 per
year on purchasing power parity (PPP) basis. Indonesia, whose PPP per capital income is just
15% grater than Indias has 83 two-wheelers per 1,000people. And Vietnam, despite having a
13% lower per capital income, has penetration of 122 two wheelers per 1000. Malaysia and
Thailand are at 223& 264 two wheelers per 1000.The fact is that with the Indian economy
growing close to8% CAGR in the last three years, three is enormous headroom fro increasing
two wheelers penetration in the country.
What this needs are the products at different price Points, sales and service set- ups across the
length and breadth of the country, which are backed by attractive financing options to make two
wheelers affordable to the vast majority of the population. Hero motocorp motors have all three
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levers in places to drive this change and expand the market. Out view is that motor cycle
demand in India will grow at around 15% per year over the coming years. It will there for
be our endeavor to grow at a pace significantly higher that the market growth.
Two-wheelers: Overall industry sales of tow-wheelers increased by 15% from 6.57million in2005-06 to 7.57 million in 2006-07. As in the previous years, motorcycle continues to dominate
the two-wheeler market. It grew at 18.8 %, from 5.2 million in2005-06 to 6.2 million in 2006-07
consequently, the share of motorcycle in two-wheeler market further increase from 79% in 2005-
06 to 82% in 2006-07. The industry sale of two-wheelers: Motorcycle while the motorcycle as a
whole grew at 18.8% in 2007-08,Hero motocorp motors sales of motorcycle increased 31.9%,
which resulted in the companys market share improving from 27.8% in 2005-06 to 30.8% in
2006-07. In 2007-08 grew up to 35.5% to
42.6% in 2008-09,there has rapid growth in two wheeler market because new generation is
more dependent more on twowheeler 50.4% in 2009- 10.
Research & Development:-
Technology leadership is the first step towards market leadership. Recognizing this, Hero
motocorp have over the years built a completely integrated R&D center at Delhi. With staff
strength of over 300 engineers, this world class center is equipped with state of- the art
facilities encompassing engine and vehicle design and testing, analysis, component testing,
electrical and electronics laboratory materials laboratory and trial manufacturing.
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POLICIES OF HERO MOTOCORP:-
KEY POLICIES
Hero motocorp, our goal is not only to sell you a bike, but also to help you every step of the way
in making your world a better place to live in. Besides its will to provide a high-quality service to
all of its customers, Hero motocorp takes a stand as a socially responsible enterprise respectful of
its environment and respectful of the important issues. Hero motocorp has been strongly
committed not only to environmental conservation programmers but also expresses the
increasingly inseparable balance between the economic concerns and the environmental and
social issues faced by a business. A business must not grow at the expense of mankind and man's
future but rather must serve mankind.
We must do something for the community from whose land we generate our wealth."
A famous quote from our Worthy Chairman Mr.BrijmohanLallMunjal.
Environment Policy
We at Hero motocorp are committed to demonstrate excellence in our environmental
performance on a continual basis, as an intrinsic element of our corporate philosophy. To achieve
this we commit ourselves to: Integrate environmental attributes and cleaner production in all our
business processes and practices with specific consideration to substitution of hazardous
chemicals, where viable and strengthen the greening of supplychain. Continue product
innovations to improve environmental compatibility.
Institutionalize resource conservation, in particular, in the areas of oil, water, electrical energy,
paints and chemicals.
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Quality Policy
Excellence in quality is the core value of Hero motocorp's philosophy. We are committed at all
levels to achieve high quality in whatever we do, particularly in our products and services which
will meet and exceed customers growing aspirations through:
Innovation in products processes and services.
Continuous improvement in our total quality management systems.
Teamwork and responsibility
Safety Policy
Hero motocorp is committed to safety and health of its employees and other persons who may be
affected by its operations. We believe that the safe work practices lead to better business
performance, motivated workforce and higher productivity. We shall create a safety culture in
the organization by:
Integrating safety and health matters in all our activities.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work places. Promoting safety and
health awareness amongst employees, suppliers and Contractors.
Continuous improvements in safety performance through precautions besides participation and
training of employee
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GLOBAL PRESENCE
Internationally competitive R&D capabilities.
Proven technological know how
Cost and quality balance
Product in sync with market need
Warranty and trained support
SUPPLY CHAIN MANAGEMENT
Partners with globally trusted shipping lines.
Efficiently packed, factor stuffed cargo shipped in CBU, SKD or CKD modes
Specially designed export packing procedure fowled
Fully container (FCL) or less than container load (LCL) dealt with
safety and security
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COMPETITORS OF HERO MOTOCORP
Industry Concept of Competition
An industry is a group of firms that offer a product or class of products that are close substitutes
for one another. Industries are classified according to number of sellers; degree of product
differentiation; presence or absence of entry, mobility, and exit barriers; cost structure; degree of
vertical integration; and degree of globalization.
Number of sellers and degree of differentiation:
The starting point for describing an industry is to specify the number of sellers and whether the
product is homogeneous or highly differentiated give rise to four industry structure types
:1.Pure monopoly
only one firm provides a certain product or services in a certain country or area (a local water or
cable company). An unregulated monopolist might charge a high price, do little or no advertising
and offer minimal service. If partial substitutes are available and there is some danger of
competition, the monopolist might invest in more service and technology. A regulated
monopolist is required to charge a lower price and provide more service as a matter of public
interest.
2.Oligopoly
a small number of (usually) large firms produce products that range from highly differentiated to
standard. Pure oligopoly consists of a few companies producing essentially the same commodity
(oil, steel). Such companies would find it hard to charge anything more than the going price. Ifcompetitors match on price and services, the only way to gain a competitive advantage is through
lower costs. Differentiated oligopoly consists of a few companies producing products (autos,
cameras) partially differentiated along lines of quality, features, styling, or services. Each
competitor may seek leadership in one of these major attributes, attract the customers favoring
that attribute, and charge a price premium for that attribute.
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3.Monopolistic competition
many competitors are able to differentiate their offers in whole or in part (restaurants, beauty
shops). Competitors focus on market segments where they can meet customer needs in a superior
way and command a price premium.
4. Pure competition
Many competitors offer the same product and service (stock market, commodity market).
Because there is no basis for differentiation, competitors process will be the same. No
competitor will advertise unless advertising can create psychological differentiation (cigarettes,
beer) in which case it would be more proper to describe the industry as monopolistically
competitive. An industry competitive structure can change over time. For instance, the media
industry has continued to consolidate, turning from monopolistic into a differentiated oligopoly.
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HERO MOTOCORP COMPITITORS:-
The Pulsar 220 which is the fastest bike in India faces a stiff challenge from new models on
speed & style.After release which created a quite a bit stirr among the bike enthusiasts across the
country by giving them the fastest Indian, Bajajs Pulsar 220 DTSi can achieve a speed of 144
km an hour, almost 20 km more than its predecessor, and can accelerate from 0 to 60 km in four
seconds.
Bajaj maybe the brand for years in scooter making in India and true enough it has set a mark in
motorcycle industry too but one should not forget that Yamaha and Honda have been the
pioneers in motorcycle industry for quiet long it was their absence which gave bajaj time to
stabilize but as they are back with some amazing concepts with user friendly price they already
have raked bajaj's market share plus bajaj has been cashing too long onthe pulsar model while all
the models from Yamaha are distinctive and have a charisma of their own which brings on
freshness to the stale Indian market. 150cc bike for over one lakh bucks? And huge sales among
that? Yamaha has to seriously consider Indian market as a highest priority n should release much
better looking bike than r15/fazer. It seems yamaha is treating Indian market as dump and hence
these kind of bikes.
The biking industry is in for a toss. Yamaha, the true blue biker's choice is sending everybody in
for a spin. The new bred Yams are not just good looking, but also have the technology &
hardware to go for. Bajaj picked up from where Yamaha left in terms of performance bikes in
India. But with the return of turning forks with line up like R1, R15,FZ16, Fazer& FZS the
competition is tougher than ever for Bajaj Pulsars. Also with the add on kits now available for
the R15 & FZ16, the performance bar will be raised.
If you see the history of Yamaha. Yamaha's all bikes after RX 100 were not very successful in
Indian market. Once technology shifted from 2 strokes to 4 stroke Yamaha lose his sheen in the
Indian Market. They have launched so many bikes after RX 100 but all of them were not very
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successful. Same story is with Hero motocorp. Hero motocorp is very successful with
fuel economic bike but not with Power bikes.
I think both of them will not give stiff competion to Bajaj. Bajaj has already made their
reputation in Power bike. I can see Bajaj going down in the coming years with Yamahaespecially entering this market very aggressively with performance based bikes where it is giving
real tough competion out there but then people remember one thing that Yamaha has a history of
giving a good race bikes all these years may be not in India but the concept is coming and who
better than yamaha can deliver such kind of bikes, Yamaha stands for performance to the max
and they surely are on a roll and will get to the top spot with new models toc ome from them the
huge success of Pulsar.
Yes I think the race to being the fastest Indian is getting hotter as the day goes by, mostof the
bike companies are vying this spot like, Yamaha which has significantly sprung back like a
phoenix for that matter and are giving stiff competition for everyone in the bike segment and
even Karizma from Hero motocorp is a great bike and gives great performance. The forte which
Bajaj Pulsar was holding for a long time would surely passon to others who are coming up with
good versions in this category.
According to meYamaha is the one who will dethrone Bajaj from their top position in this
segment. No I don't see this happening as Bajaj pulsar has time and again proved themselves in
this performance based biking for a long time in India, and also with that performance they also
come up with a good mileage tag and this is where there are many takers for Bajaj pulsar,
whereas Karizma and the Yamaha series doesn't give one a great mileage for that matter, so it
would be very difficult to give competition for Bajaj Pulsar in this regard.
But now the launching of two new products by hero has created a great compitition with its
compititors
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POTOR ANALYSIS OF HERO MOTOCORP
Porter five forces analysis
Porter's Five Forces is a framework for industry analysis and business strategy development
formed by Michael E. Porter of Harvard Business Schoolin1979.It draws upon Industrial
Organization (IO) economics to derive five forces that determine the competitive intensity and
therefore attractiveness of a market. Attractiveness in this context refers to the overall industry
profitability. An "unattractive" industry is one in which the combination of these five forces acts
to drive down overall profitability. A very unattractive industry would be one approaching "pure
competition", in which available profits for all firms are driven down to zero.
Three of Porter's five forces refer to competition from external sources. The remainder is internal
threats. Porter referred to these forces as the micro environment, to contrast it with the more
general term macro environment. They consist of those forces close to accompany that affect its
ability to serve its customers and make a profit.A change in any of the forces normally, requires
a business unit to re-assess the market place given the overall change in industry information.
The overall industry attractiveness does not imply that every firm in the industry will return the
same profitability. Firms are able to apply their core competencies, business model or network to
achieve a profit above the industry average. A clear example of this is the airline industry. As an
industry, profitability is low and yet individual companies, by applying unique business models,
have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: threat of substitute
products, the threat of established rivals, and the threat of new entrants; and two forces from
'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis is just one part of the complete Porter strategic models. The other
elements are the value chain and the generic strategies.
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The five forces :-
The threat of the entry of new competitors Profitable markets that yield high returns will
attract new firms. This results in many newer trants, which eventually will decrease profitability
for all firms in the industry. Unless the entry of new firms can be blocked by incumbents, theabnormal profit rate will fall towards zero ( perfect competition).
The existence of barriers to entry( patents, rights,etc.) The most attractive segment is one in
which entry barriers are high and exit barriers are low. Few new firms can enter and non-
performing firms can exit easily.
Economies of product differences
Brand equity
Switching costs or sunk costs
Capital requirements
Access to distribution
Customer loyalty to established brands
Absolute cost
Industry profitability; the more profitable the industry the more attractive it will be to new
competitors.
The intensity of competitive rivalry
For most industries, the intensity of competitive rivalry is the major determinant of the
competitiveness of the industry.
Sustainable competitive advantage through innovation
Competition between online and offline companies;
click-and-mortar -v- slags on a bridge.
Level ofadvertising expense
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Powerful competitive strategy
The visibility of proprietary items on the Web used by a company which can intensify
competitive pressures on their rivals.
The threat of substitute products or services
The existence of products outside of the realm of the common product boundaries increases the
propensity of customers to switch to alternatives:
Buyer propensity to substitute
Relative price performance of substitute
Buyer switching costs
Perceived level of product differentiation
Number of substitute products available in the market
Substandard product
Quality depreciation
The bargaining power of customers (buyers)
The bargaining power of customers is also described as the market of outputs: the ability of
customers to put the firm under pressure, which also affects the customer's sensitivity to price
changes.
Buyer concentration to firm concentration ratio
Degree of dependency upon existing channels of distribution
Bargaining leverage, particularly in industries with high fixed costs
Buyer volume
Buyer switching costs relative to firm switching costs
Buyer information availability
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Ability to backward integrate
Availability of existing substitute products
Buyer price sensitivity
Differential advantage (uniqueness) of industry products
RFM Analysis.
The bargaining power of suppliers
The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw
materials, components, labor, and services (such as expertise) to the firm can be a source of
power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm,or, e.g., charge excessively high prices for unique resources.
Supplier switching costs relative to firm switching costs
Degree of differentiation of inputs
Impact of inputs on cost or differentiation
Presence of substitute inputs
Strength of distribution channel
Supplier concentration to firm concentration ratio
Employee solidarity (e.g. labor unions)
Supplier competition - ability to forward vertically integrate and cut out the buyer.
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CUSTOMER VALUE ANALYSIS TOWARDS HERO MOTOCORP:-
Companies succeed by providing superior customer value. And value is simply 'quality' -
whichever way the customer defines it - offered at the right price. While this strategic principle is
simple, it is also very powerful. For survival and success, it is far more important to commit
yourself to superior quality and customer value than to commit yourself to attaining financial
goals. Superior customer value is the best leading indicator of market share and competitiveness
(think Hero motocorp). And market share and competitiveness in turn drive the achievement of
long-term financial goals such as profitability; growth and shareholder value.
The first step in achieving leadership in market-perceived quality and value is to understand what
causes customers in your targeted market to make their decisions to decide that one product
offers better value than another. Understanding that is the central objective of customer value
analysis. The factors that contribute to quality in the customer's mind need not be mysterious.
Customers will gladly tell you what they are. A customer value analysis uses information from
customers to show how customers make decisions in your marketplace. With this information,
you have the means to know what to change to ensure that more of them will buy from you.
Some companies focus on a few (sometimes, even just one) customers to deliver extraordinary
value.
Particularly when they are dealing with the world's premier corporations.
For example, Abhishek Industries in Ludhiana, the flag ship company of the Trident Group, has
built an outstanding record for quality, consistency and on-time delivery with Wal-Mart. In turn,
Wal-Mart has recognized Abhishek Industries as the International Supplier of the Year 2001. At
the core of this recognition is customer-perceived quality/value.
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To drive a company wisely, we need a few clear, widely-accepted principles:
Companies succeed by providing superior customer value.
Companies should track the customer value they provide through a method like customer value
analysis.
Companies should use a method of business planning that allows for 'action learning', such as
the war-room method of conducting business meetings.
Companies need a comprehensive strategic navigation system to provide data on both financial
and customer value performance
RESEARCH METHODOLOGY:-
The methodology used in conducting the research work on HERO MOTOCORP with major emphasis on
its sales and marketing strategies involve the following steps:
Why I have selected HERO MOTOCORP only?
I have selected Hero motocorp because it is the company that is growing day by day. It has maximum
market share with comparison to its competitors. And it is the company that gives highest sales and it is
also the highest two-wheeler manufacturer.
Defining the problem and deciding research objectives:
Defining the objective is the most important part of any study process. Proper defining of the problem is a
must for proceeding further with the research process. The type of study to be carried out, the questions to
be raised, the sampling procedure to be followed, and the data to be collected, all depends on a correct
understanding of the problem. Also, by clearly focusing on the real problem, the research job can be
simplified and completed with the minimum cost, effort and data.
Identified problem or the objectives of the research discussed in the report are:
1. Developing the research plan:
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4. Collection of information:
The primary information was collected by face-to-face and direct interviews with the peoples and the
customers. They provide the relevant information regarding the profile of the company as compared to the
other company in the Indian market..
5. Analyzing the information:
The data collected was carefully analyzed. The research and analysis of the information has been done on
the basis of various sales and marketing strategies adopted by the company during its tenure
6. Reporting and conclusions and recommendations:
This is the most vital part of the work undertaken. After collection and analysis of data, it was recorded in
the form as prescribed. The major part of the report is the findings. The finding also includes charts,
tables and diagrams etc. The report also mentioned the limitations of the project undertaken. Then
conclusion has been drawn out of the findings and various recommendations have been given at the end
of there port. Certain tables on the basis of which the findings were made have been included in the
appendices section followed by the bibliography
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INTERVIEW :-
RAHIS ISMAIL SELOT (HERO MOTO CORP LTD)
ASST. MANAGER IN
FORTPOINT AUTOMOTIVE PVT LTD .
MAHIM BEST DEPOT PREMISES,
OPP ST.MICHAEL CHURCH,
L J ROAD, MAHIM.
MUMBAI 400016.
THE HERO MOTO CROP IS ONE OF THE BEST COMPANY IN TWO WHEELER
INDUSTRIES EALIER. WE HAD COLABRETION WITH (HONDA) NOW WE ARE
TOTALLY INDEPENDENT ON OUR PRODUCT .
WE OUR PROUD OF ARE PRODUCT THAT AFTER BEEN APART FROM (HONDA),
YET CUSTOMER CHOOSE OUR PRODUCT AND, WE ARE TRYING ARE LEVEL BEST
TWO SATISFIED OUR CUSTOMER WHILE GIVING BEST SERVICES IN THIS UP
COMING YEAR OUR COMPANY IS TRYING TWO LAUNCH FEW NEW PRODUCT IN
LAST YEAR(2011)COMPANY HAD LAUNCH HERO (IMPULSE).
YOUNG GENERATION OUR CHOOSING OUR COMPANY PRODUCT AND OUR
CUSTOMER IS SATISFIED WITH OUR NEW PRODUCT, HOPE IN THIS YEAR
(2012).WE WILL INCREASE OUR SELL AND FOR THIS THING ,WE REQUIRED OUR
CUSTOMER SUPPORT .HOPE SO THAT FUTHER EVEN YOU ARE SUPPORTING OUR
COMPANY WHILE CHOOSING OUR BRAND (HERO MOTO CORP LTD).
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SCOPE OF THE STUDY:-
Hero motocorp is spreading its wings and widening its business horizon to reach and serve customers at
new centers in the year ahead. The company services are backed by a highly motivated and technology
driven team to achieve customers need, product expertise and geographic reach. The study is oriented
towards the concept of different brands offered by Hero motocorp audits competitors to its customers.
The company has endeavored to move fast in providing market solution, which maximize customer needs
and convenience, using multiple delivery channels in composing the agency network, service centers,
lower service cost and increased efficiency.
LIMITATIONS OF THE STUDY:-
As said a basic research was conducted at the company to enable the company to assess how far the
customers are satisfied with product and services of Hero motocorp. During the course of the study the
following limitations were observed:
The method will be unsuitable if the number of persons to be surveyed is very less as it will be difficult to
draw logical conclusions regarding the satisfaction level of customers.
Interpretation of data may vary from individual depending on the individual understanding the product
features and services of the company.
The method lacks flexibility. In case of inadequate or incomplete information the result may deviate.
It is very difficult to check the accuracy of the information provided.
Since all the products and services are not widely used by all the customers it is difficult to draw realistic
conclusions based on the survey.
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FACTS & FIGURES:-
Sale of Hero motocorp in Rural area and Urban area
In the survey of rural as well as urban area it is found that in rural area the sale of Hero motocorp
is less but in urban area it gives very exiting result. This may be because of the conditions of
roads there
Area % of Respondents
Urban Area 72
Rural Area 28
FAMILY INCOME OF RESPONDENTS:-
The income distribution of the families of respondents shows that the bike, which was considered earlier
to be out of range for middle class families is now becoming very fast an article for them
Family income (Rs.)% of Responses
5000-10000 10
10000-15000 46
15000-20000 36
Above 200000 08
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FACTORS FOR PROMPT TO BUY HERO MOTOCORP:-
It should be stated that the performance is the most important factor followed by look.
The possible combination and corresponding number of respondents are shown in the table
below
Features % of respondents
Performance 18
Look 11
Availability 5
Price 1
Maintenance 4
Brand image 5
After sale service 6
HOW THE RESPONDENT DID CAME TO KNOW ABOUT THE BIKE?
The best media of advertisement (according to which the respondents came to know about the
bike) is the ads on television. Friends & magazine are the other sources. Only 2% of them came
to know through hoardings
Medium of Advertisement % of Respondents
Television 46
Magazine 36
Friends 14
Hoardings 02
Others 02
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PURCHASE OF BIKE:-
Almost 45% of the respondents say that they have purchased the bike by cash. Only 55%of the
respondents say that they have purchased their bike through bank loans
Purchase Type % of Respondents
Cash Purchase 45
Hire Purchase 55
DECISION INFLUENCED BY:-
Maximum no. of the Respondents have taken decision to buy the bike on their own. After
thattheir friends and parents influenced them
Influencer % of Respondents
Parents 16
Self 54
Friends 18
Relatives 08
Others 04
RATING OF BIKES:-
42% of the respondents have rated as the best bike they have used, but it is facing a stiff
competition from Pulsar &Fierro.
Bikes % rating by Respondents
Splendor 38
Passion 08
Ambition 06
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QUESTIONNAIRE FOR THE SURVEY OF MOTORBIKES.
1.Name __________________________________________________
2. Phone No. ___________________ Mobile No. ___________________
3. Age 1822 years[ ]
2327 years[ ]
2832 years[ ]
above 32 years[ ]
4. Do you have any bike in your house? Yes[ ]No[ ]
5. If Yes, Name and Company of the Bike.
________________________________________________________.
6.Which Bike do you like most? ________________________________________________________.
7. Rank the Motorbike manufacturing company.
1.Heromotocorp[ ]
2.Yamaha[ ]
3.Bajaj[ ]
4.Mahindra[ ]
8. Do you remember any advertisement of Hero motocorp?
________________________________________________________
9.What should the price range in your opinion?
Splendor +___________________Sufficient[ ]
CD dawn___________________Sufficient[ ]
Passion +___________________Sufficient[ ]
CBZ___________________Sufficient[ ]
Karizma___________________Sufficient[ ]
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10.Any new facilities or any improvement that you want.
________________________________________________________
_________________________________________________________________
_______________________________________________
11. Give remark to your old Bike Company
.Good[ ]
Very Good[ ]
Excellent[ ]
Out standing[ ]
12.Give remark to Hero motocorp.
Good[ ]
Very Good[ ]
Excellent[ ]
Out standing[ ]
Thanks
Surveyed by: Checked by:
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BIBLIOGRAPHY:-
BOOKS:
Name of the book :- RPH(RISHAB PUBLICATION HOUSING) : - SUNNY FERNANDES Name of the book :- HIMALAYA PUBLISHING: - SUBHASHINI NAIKAR.
MAGAZINES, JOURNALS AND NEWSPAPERS:
Journals published by Hero Honda, Annual Report
INTERNET
WWW.HEROHONDA.COMNEWS PAPER CUTTING
HINDUSTAN TIMES, MUMBAI MIRRIOR.
http://www.herohonda.com/http://www.herohonda.com/http://www.herohonda.com/