COMPARISON BETWEEN THE DISTRIBUTION CHANNEL OF HERO

HONDA AND YAMAHA

Submitted by :-Chirag AdlakhaKamal Sidana

Sandeep RanJanSarada Prasan

Saurabh PrasharShyam Modi

Hero Honda :-Joint venture of Hero cycle Co.

and Honda Motors Co.Formed on January 19,1984 at

GurgaonFormed by Mr. Brijmohan Lal

ManjalIt has a market share of 48%Sales and service is conducted

through over 760 dealers and around 1100 service centers

Cont…Producing 3 million bikes in a

year through 3 production centre situated at Gurgaon, Dharuhera& Haridwar.

Claiming as the World’s No.1 two wheeler company from last 6 yrs

In 2006,As per the Forbes magazine, it was ranked at 108

Yamaha :-In August 2001,YMI Pvt. Ltd. Was

incorporated as a subsidiary of Yamaha Motors Corporation

Formed by Mr Yukimine TsujiIt has a market share of less than

10%Its production plants are situated

at Faridabad (Haryana) and Surajpur (UP).

Its key factor is Quality with Performance

Objective of the project :-Comparing two companies on the

basis of their distribution channel structure

Analyzing the pros and cons of their distribution channel

Core competency of Hero Honda :-Introduced “Rural vertical”

project in 2007 to encourage sales in rural area

Produce fuel efficient bikes by keeping the Indian customer in mind

Introduced the “Passport Programme”

Undertake aggressive selling efforts during the festive seasons.

Core competency of Yamaha :-

Applying latest technologyComing with fashionable bikesEncouraging the youth with sport

spirit

Distribution structure of Hero Honda :-

Manufacturer

Dealer

Customers

Distribution structure of Yamaha :-

Manufacturer

Distribution centre

Depot

Dealer

Customer

Comparison between Hero Honda & Yamaha :-Yamaha – distribution takes place

through its depots as well as through its dealers.

HH – distribution takes place only through the dealers.

Yamaha has adopted the concept of direct shops for distribution

Hero Honda does not have any such strategy for its distribution channel.

Cont…Hero Honda – evolved the

concept of ARD(Authorised Representative of Dealer)

Main object of fulfilling the rural area needs thus strengthening the distribution network.

Hero Honda has an additional benefit of the “Cityworks” concept.

Recommendation to Yamaha :-

Yamaha should try to avoid the depots system from its distribution channel.

Yamaha should try to maintain a good customer relation which can help to raise the sales

Recommendation to Hero Honda :-Hero Honda should try to adopt

the concept of direct shopIt can start a new distribution

channel for its premium range bikes