Hero Honda MASTER com
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Transcript of Hero Honda MASTER com
8/3/2019 Hero Honda MASTER com
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Chris DeMicco,Chris DeMicco, Laura Dunne, Dave Gelber, Sarah Haight, Sarah HunkinsLaura Dunne, Dave Gelber, Sarah Haight, Sarah Hunkins
December 2December 2ndnd, 2005, 2005
Driven By The TrustDriven By The TrustOf Our CustomersOf Our Customers
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Problems & IssuesProblems & Issues
Joint Venture Problems Joint Venture Problems
Honda Motor Company Ltd. announced it was setting upHonda Motor Company Ltd. announced it was setting up
a subsidiary (HMSI)a subsidiary (HMSI)
The development of the CD The development of the CD--100 motorcycle was only 100 motorcycle was only
successful for a very short period of timesuccessful for a very short period of time
Honda held complete responsibility for the Research &Honda held complete responsibility for the Research &
Development department for Hero HondaDevelopment department for Hero Honda Honda negotiated new ventures and partnerships withHonda negotiated new ventures and partnerships with
other Indian manufacturers in the automobile and power other Indian manufacturers in the automobile and power
equipment industry, leaving Hero completely out equipment industry, leaving Hero completely out
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Problems & IssuesProblems & Issues
Ex ternal ProblemsEx ternal Problems
The Indian government starting allowing foreign The Indian government starting allowing foreigncompanies to enter the Indian markets through joint companies to enter the Indian markets through joint
ventures ventures The Indian marketplace was gaining more entrants The Indian marketplace was gaining more entrants
causing rivalry in the industry to risecausing rivalry in the industry to rise
Competitors such as TVSCompetitors such as TVS--Suzuki, Yamaha from JapanSuzuki, Yamaha from Japan
and Bajaj Auto began to introduce newer product linesand Bajaj Auto began to introduce newer product lines
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Implementing ChangesImplementing Changes
Management introduced new ideas coupled withManagement introduced new ideas coupled withimproved terms of agreement for their joint ventureimproved terms of agreement for their joint venture
Two primary goals in mind Two primary goals in mind
Continuing their successContinuing their success
Maintaining their e x isting market shareMaintaining their e x isting market share
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New TacticsNew Tactics
Collaborating with Steyr Daimler PuchCollaborating with Steyr Daimler Puch
Supplying completely knockedSupplying completely knocked--down (CKD) kitsdown (CKD) kits
Establishing a more proactive marketing Establishing a more proactive marketing
department department
Ex panding the distribution network Ex panding the distribution network
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RenegotiatingRenegotiating
Ex tending the joint venture agreement Ex tending the joint venture agreement
Bettering the terms in regards to royaltiesBettering the terms in regards to royalties
Requesting more timely cooperationRequesting more timely cooperation
Manufacturing the Street and Dream modelsManufacturing the Street and Dream models
Increasing the quantity of components andIncreasing the quantity of components andsubassemblies purchasedsubassemblies purchased
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RecommendationsRecommendations
Use company philosophy as competitive advantageUse company philosophy as competitive advantage
Create a marketing campaign around the businessCreate a marketing campaign around the businessstrategy strategy
Building motorcycles for the common manBuilding motorcycles for the common man
Reasonably priced with above average fuel economy Reasonably priced with above average fuel economy
Emphasize this could increase the likeliness of the bikes as being aEmphasize this could increase the likeliness of the bikes as being asubstitute for the auto market, especially when gas prices are so highsubstitute for the auto market, especially when gas prices are so high
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RecommendationsRecommendations
Utilize a related diversification strategy Utilize a related diversification strategy ²² enter theenter thescooter market scooter market
Use e x pertise of India·s terrain and people to captureUse e x pertise of India·s terrain and people to capture
the scooter market before new sister company Hondathe scooter market before new sister company HondaMotor Scooters India Ltd. enters the market Motor Scooters India Ltd. enters the market
Capitalize on positive and popular brand imageCapitalize on positive and popular brand image
Share similar resources for motorcycles and scootersShare similar resources for motorcycles and scooters
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RecommendationsRecommendations
Ex pand to countries that heavily utilize twoEx pand to countries that heavily utilize two-- wheelers wheelers
Popular vacation spots in Central and South America asPopular vacation spots in Central and South America as
well as the Caribbean well as the Caribbean Tourists year Tourists year--round; may opt to rent motorcycles or scootersround; may opt to rent motorcycles or scooters
versus automobiles versus automobiles
Could be potential for high volume/fleet salesCould be potential for high volume/fleet sales
Ex amine warm tourist locations within the United StatesEx amine warm tourist locations within the United Statesincluding California and Florida for possible market including California and Florida for possible market entry entry
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Case UpdateCase Update
Hero Honda Today Hero Honda Today
India and Hero HondaIndia and Hero Honda
Fuel Efficient Fuel Efficient
Pollution Control/Quality Pollution Control/Quality
Technology Technology
Customers, Dealers/VendorsCustomers, Dealers/Vendors
Fiscal Year 2003Fiscal Year 2003--20042004
Market ShareMarket Share
Distribution & Service Network Distribution & Service Network
Routes/Delivery Routes/Delivery ²² MapInfoMapInfo
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Case UpdateCase Update
Fiscal Year 2004Fiscal Year 2004--20052005
Earnings ResultsEarnings Results
Technological Support Technological Support
September 30th, 2004 Rs 1,943.60
September 30th, 2005 Rs 2,379.20
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Case UpdateCase Update
Current ModelsCurrent Models
100 cc plus segment 100 cc plus segment
Super Splendor & Glamour Super Splendor & Glamour
150 cc plus segment 150 cc plus segment Achiever Achiever
Scooter Segment Scooter Segment ²² wider customer base wider customer base
´Pleasureµ´Pleasureµ
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SWOT AnalysisSWOT Analysis
StrengthsStrengths
Ability to understand customer·s needs and wants Ability to understand customer·s needs and wants
Recognized and established brand nameRecognized and established brand name
Effective advertising capability Effective advertising capability
WeaknessesWeaknesses
R&D is not close to the Hero manufacturing plant R&D is not close to the Hero manufacturing plant
Hero is vulnerable in the joint venture because HondaHero is vulnerable in the joint venture because HondaMotor Company has so much power Motor Company has so much power
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SWOT AnalysisSWOT Analysis
OpportunitiesOpportunities
Global e x pansion into the Caribbean and CentralGlobal e x pansion into the Caribbean and Central America America
Ex pansion of target market (include women)Ex pansion of target market (include women)
Become India·s leader in the scooter market Become India·s leader in the scooter market
Threats Threats
Honda Motorcycles and Scooters India can take away Honda Motorcycles and Scooters India can take away
market share and cause joint venture to go sour market share and cause joint venture to go sour
Bajaj Motors is a strong competitor Bajaj Motors is a strong competitor
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A Bright Future?A Bright Future?
Yes Yes!! Established name and dominant market positionEstablished name and dominant market position
Strong Marketing Department Strong Marketing Department
Local KnowledgeLocal Knowledge
Technological Advancements Technological Advancements
Introduction of scooter Introduction of scooter
Renewal of joint ventureRenewal of joint venture
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Thank you!Thank you!Questions/comments?Questions/comments?