Hero Global PPT

7/27/2019 Hero Global PPT

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Abhijeet 03Abhishek Mehta 04Ajay 07Ankur Arora 09Ashwini

Chandani Sandhu 25


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Hero Moto Corp Ltd. (Formerly Hero Honda MotorsLtd.) is the world's largest manufacturer of two -wheelers, based in India.

Hero Honda started in 1984 as a joint venturebetween Hero Cycles of India and Honda of Japan.

Hero Motor has finalized an export strategyfocusing on markets such as Latin America, Africaand South-East Asia, taking its first step towardsemerging as a global player after the recent splitwith its 26-year old Japanese partner Honda.


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The Munjals-owned company has identified LatinAmerica, Africa and South East Asia as the keymarkets."There is a common thread between the three

export markets. These are high volume andcommuter-driven markets and it's a quick-winfor us," said Anil Dua, senior vice-president(marketing and sales) Hero Motor.The company is looking to set up a fourthmanufacturing facility - while the first three willcater to the domestic market, the new plant willbe responsible for the exports.


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Their Products: Impulse Achiever CBZ Xtreme Hunk Karizma CD Dawn/ Deluxe Glamour/ Glamour FI Pleasure Passion Pro Splendor


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UNDERSTANDING

CULTURE


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Though it is a South American country it differsculturally.Strong ties to tradition due to lack of religiousdiversity.

Preference to social status .High Collectiveness i.e. work better in teams.less willing to embrace change due to lowreligious diversity.

Absence of willingness to accept a moderatedegree of risk and a concern with performance.Managers and employees generally dont seekchallenging goals.


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Chile has a relationship driven culture so initialmeetings should be used to build a relationshipand establish trust.Direct eye contact is important.

It is common to interrupt someone while they arespeakingIt is important to be patient as time is not of the

essence in Chile - meetings will last as long as they

need to last.Managers feel it is inappropriate to consult withlower-ranking individuals when decision-making.


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A collectivistic societyManagers strive for consensus, people valueequality, solidarity and quality in theirworking lives.A very high preference for avoidinguncertainty. Thus, innovation may beresisted and security is an importantelement in individual motivation.An effective manager is a supportive one,and decision making is achieved throughinvolvement.


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Beginning with small talk helps establish a base for therelationship, after which discussion of business matters canbegin.Allow your host to initiate the business conversation.Personal relationships are more important than businessrelationships.Avoid talking about politics and religion if possible.Avoid hard selling and any sort of conflict orconfrontation. Paraguayans respond much better to thesoft sell.

The issue of saving face is important in Paraguay.Final decisions are usually made by the highest rankingofficers, so it is best to have them in the meeting if possible.


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Segment Young boys looking for fast sporty bikes forLatin American roads

Target Group Young boys in the age 18-30 middle class

Positioning Every person has a hero and a winner withinones self


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MARKETINGSTRATEGIES


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PARENT COMPANY: HERO group owned by Munjals CATEGORY: motorcycles, scootersSECTOR: two wheeler

TAGLINE: hum me hai hero USP: high customer loyalty, large product variety,excellent brand equity Opportunity: Market growth rate 10-15% & GDP per capita rising at high rate


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Mid Price segment: Chinese Motor Bikes Yamaha Bajaj auto TVS Suzuki Mahindra & Mahindra (SSANGYONG)Premium Segment Harley Davidson Ducati


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1. Export2. Setting production center


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Indirect Method for early stage.After couple of years direct method(subject to the growth rate of HMC)


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LicensingFranchisingManagement Expertise


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Definition

performing the necessary managerial functions orproviding managerial expertise in return for a fee.

Why is it needed?

Economies of scaleEasy entry in the market and for knowledge of thatmarketMatching the competency with the target market


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Our Conclusion:Not needed

Reasons:

Similar nature of Latin American marketsAnd Hero Honda has already done theiroperation in Latin American marketassembling of motorcycles in Columbia.

Hero Honda also exported bikes like C-DDawn and Glamour in Columbian Marketsuccessfully.


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It is a contract under which a firm agrees to fully design, constructmanufacturing facility for the purchaser for a remuneration.

Eg: of Turnkey Projects in our target m arketHyduke Energy Services Inc. (Canadian com pany) is in a contract with a SouthAmerican based customer to provide two turn-key 1000HP AC electricdrilling rig packages.

Our conclusion:Not client specificMass production without any customizationWant to launch own productSo not applicable


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Setting up own plant in countriesRiskyExtensive Market Research

Analysis of economy, industry andcompetitorsCostly mode


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Forward: DistributionBackward: Raw Material, Local knowledgeVertical: Branding and promotions


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QUERIES????

Hero Global PPT

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