Marketing analysis of Hero Motocorp

MARKET ANALYSIS OF HERO HONDA MOTORS LIMITED.

A Project Report submitted in partial fulfillment of the requirements for

SUBMITTED BY SUBMITTED TO

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Marketing analysis of Hero Motocorp

ACKNOWLEDGEMENT
A project cannot be said to be the work of an individual. A project is a combination of views and ideas, suggestions and contributions of many people. I am extremely thankful to my project guide prof: sridhar who gave me an opportunity to do this project report as a part of the curriculum. I wish to express my sincere gratitude to Hero Honda Company Staff & dealer Prakash motors whose valuable information throughout my project work. Also I wish to thank all the respondents who gave me some of their valuable time to fill up the questionnaires, without which the project study wouldnt have been a success.

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Marketing analysis of Hero Motocorp

TABLE OF CONTENTS
OBJECTIVES OF THE PROJECT SCOPE OF THE PROJECT INTRODUCTION AUTO INDUSTRY- A REVIEW COMPANY PROFILE VISION ACHIEVEMENTS METHODOLOGY MARKETING STRATEGIES MARKETING COMMUNICATION ADVERTISEMENT SALES PROMOTION PUBLICITY COMPARATIVE MARKETING STRATEGIES AUTO MOBILE SALES FIGURE ANALYSIS RESULTS RESOURCE LED STRATEGIC DEVELOPMENT CORE COMPETENCIES SWOT ANALYSIS CONCLUSION LIMITATIONS RECOMMENDATIONS BIBLIOGRAPHY QUESTIONNAIRE

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Marketing analysis of Hero Motocorp

OBJECTIVES
To study the marketing mix of Hero Honda Company To study its life cycle initial stage, growth and maturity. To study various promotional strategies and know about the current strategies keeping in mind the cut throat competition and arrival of Honda Company in India. To focus on comparative study of different products of Hero Honda company Different range of Products; their success and failure. To study overall financial performance of Hero Honda

Company.

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Marketing analysis of Hero Motocorp

SCOPE OF THE PROJECT

The project involves, the study of the segmentation, targeting & positioning of Hero Honda two-wheeler in the market. And what people think about it. Hero Honda. It includes carrying out a survey among customers & the industry people as well as the retailers. It also involves the devising of repositioning of the existing brand by some modifications; advertisement should be so made that the targeted segment comes to know what the bike is. How is it better from others. So, that in near future this bike becomes a grand success. Information regarding the market share, cost factors, the marketing and promotional strategies etc was collected from primary data sources.

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Marketing analysis of Hero Motocorp

INTRODUCTION

The Rs. 5500 crore Indian two wheeler segment is the second largest market fin the world after China. Indias two wheeler production is the third largest in the world after Japan and China. India has a welldeveloped two wheeler market with around 25 million households owning two-wheeler. The Indian two wheeler industry made a modest beginning in the early 1950 when Automobile Product of India ( API ) started manufacturing scooter in India. Until 1958. API and Enfield( motorcycle) were the only two in production. In 1948, Bajaj auto began trading in imported Vespa scooter and the three wheeler- finally, in 1960s. it set up shop to manufacturer them in technical collaboration with piggaio of Italy. The agreement expired in 1971. In the initial stages, the scooters segment was regulated regime, foreign company was not allowed to operate in India, and waiting time for getting Bajaj scooters was as high as 12 years. Java, and escort. While the Enfield bullet was a four strokes bike, the Java and Rajdoot were two-strokes bikes. The motorcycles industry was originally dominated by Enfield with 350 cc bikes. The motorcycles industry was cc segment. The two wheelers segment was opened up to foreign competition in the mid 1980s which saw the entry of the Japanese manufactures into the country.

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Marketing analysis of Hero Motocorp

COMPANY PROFILE

The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Honda's commitment to customer, quality and excellence, and while doing so, maintain the highest standards of ethics and societal responsibilities. Twenty five years and 25 million two wheelers later, Hero Honda is closer to fulfilling this dream. This vision is the driving force behind everything that we do at Hero Honda. We understood that the fastest way to turn that dream into a reality is by remaining focused on that vision. There were many unknowns but we kept faith, and today, Hero Honda has been the largest two wheeler company in the world for eight consecutive years. Our growth has kept compounding. The company crossed the ten million unit milestone over a 19-year span. In the new millennium, Hero Honda has scaled this to 15 million units in just five years! In fact, during the year in review, Hero Honda sold more two wheelers than the second, third and fourth placed two-wheeler company put together. With Hero Honda, the domestic two wheeler market was able to show positive growth during the year in review. Without Hero Honda, the domestic market would have actually shrunk. Over the course of two and a half decades, and three successive joint venture agreements later, both partners have fine-tuned and perfected their roles as joint venture partners. What the two partners did was something quite basic. They simply stuck to their respective strengths. As one of the world's technology leaders in the automotive sector,

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Marketing analysis of Hero Motocorp

Honda has been able to consistently provide technical know-how, design specifications and R&D innovations. This has led to the development of world class, value - for- money motorcycles and scooters for the Indian market. On its part, the Hero Group has taken on the singular and onerous responsibility of creating world-class manufacturing facilities with robust processes, building the supply chain, setting up an extensive distribution networks and providing insights into the mind of the Indian customer. Since both partners continue to focus on their respective strengths, they have been able to complement each other. In the process, Hero Honda is recognized today as one of the most successful joint ventures in the world. It is therefore no surprise that there are more Hero Honda bikes on this country's roads than the total population of some put together! The company's meteoric growth in the two-wheeler market in India stems from an intrinsic ability to reach out and come closer to its customers, with every passing year. Hero Honda's bikes are sold and serviced through a network of over 3500 customer touch points, comprising a mix of dealers, service centres and stockists located across rural and urban India. Hero Honda has built two world-class manufacturing facilities at Dharuhera and Gurgaon in Haryana, and its third and most sophisticated plant at Haridwar has just completed a full year of operations. It is difficult to imagine that all this has happened in the span of just two and a half decades! The best is yet to come. During the year in review, Hero Honda powered its way in a market that, for all practical purposes, was feeling the full effects of the economic slowdown in India. With an economic recovery now clearly on the cards, Hero Honda is all set to ride into another summit. As Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly puts it, "We pioneered India's two wheeler industry, we've European countries

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pace again.''

steered it through difficult times; now it is our responsibility to set the

Hero MotoCorp Ltd. (Formerly Hero Honda 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. . New Models The company has a large portfolio of brands, with the money-spinners being mainly Splendor Plus (the world's largest selling bike) and Passion. However, the company claims it was the launch of the 150cc CBZ and 225cc KARIZMA which established Hero Honda as an inspirational brand. "The launch of CBZ and KARIZMA got us into a different league altogether. Although the sales are just about 3,000 a month, it made us an overall bike company, Hero Honda would launch a new model of the KARIZMA by the end of current year, the Managing Director, Mr. brijmohanlal Munjal, said. Meanwhile, the company is yet to decide on the location of its proposed Fourth manufacturing unit. The feasibility study is on'', he said, adding that the new plant was likely to come up in the next 18 months. New launches are likely to help Hero Honda gain a market share in the coming quarters. Hero Honda Motors Ltd, has launched a new 100-cc four-stroke bike, CD deluxe and Dawn is likely to be phased out of the market once the new model sells ``10,000 plus'' units per month. Sales Performance

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Marketing analysis of Hero Motocorp

Hero Honda went against the grain and created a growth trajectory all of its own. Sales of the company grew by over 11 per cent in volume terms and in value terms; they grew by over 19 per cent.

Effectively, this helped the company end the year with a market share of around 60 per cent. This robust performance helped the company increase through earnings its margin worst 120 basis year pointsa in remarkable recent feat, considering that elsewhere in the world, the automobile industry went history. Hero Hondas performance in its silver jubilee year helped it retain its position as the worlds largest two wheeler company for the eighth year in a row. It also helped the company cross the 25 million unit mark becoming the first company in India to reach this milestone. Last year, two new models were launched, namely CBZ XTREME and HUNK to address super-style and economy segments. Passion pro has found its position firm amongst Indian models, only next to Splendor, the largest selling bike in the world in terms of sales performance. CBZ was re-launched as CBZ XTREME, in April 2007, with changes and value additions to cater to specific needs of the customers. Reportedly CBZ XTREME is doing well in its segments and has sold over 10,000 units in the initial months itself. Hero Honda has targeted a sale of over 3 million bikes for the year 2009-10. This effort is supplemented by a major launch this year, in October end; this bike will have some exclusive features and will be in the 200cc plus range. There are some ambitious programs of launching a new range of bikes with technical support from Honda in the coming years. With a slew of such measures the capacity available at present locations can at best support two-million production target at the existing plants. The company, therefore, is looking at the possibility of setting up a third

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is in progress.

plant to meet the future demand and for which techno-economic study

New Initiatives Customer and customer satisfaction is the purpose of our being an entity. To increasingly understand him and make him part of our ongoing business. Customer related initiative has been the increase of warranty period to three years since July 2008. This has attracted a great deal of customer attention. During the year the company has added nearly a hundred dealerships and SSPs. In terms of sheer numbers, the network has grown by 16% during the year 2008-09. We would endeavor to increase our reach to every corner of this country. Plans for the future In the previous year, the domestic two-wheeler industry entered a period of de-growth. However, this was arrested in 2008-09, largely on the back of Hero Honda's performance. After the blip of last year, the two-wheeler industry went back to a growth phase, largely driven by Hero Honda and exports. The industry clocked total volumes of 8.5 million during the year in review, a growth of 5 per cent compared to a fall of 5 per cent in the previous year. The pace of growth was lower in the domestic market, where the industry clocked sales of 7.43 million, a rise of only 2.60 per cent. This, however, was a significant improvement over previous year when the industry had shrunk by 8 per cent. Motorcycles continue to constitute the largest chunk of the two-wheeler industry, and during the year in review, accounted for four fifth of sales.

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Interestingly, for the second year in succession, scooters increased their share in the two-wheeler pie from 14 per cent to 16 per cent. This is clearly a trend reversal from the last 10 years, where the share of scooters in the two-wheeler pie had been shrinking. Changing lifestyles among women, and the introduction of feature-rich, high-quality scooters possibly has much to do with the revival in demand The entry segment made up of basic 100 cc bikes -Had started slowing two years ago, and during the year in review, sales in this segment were down by more than 15 per cent. This could be attributed to the fact that deluxe segment bikes have become affordable on account of a 4 per cent excise cut, 1 per cent reduction in CST and the special package of reduction in excise duty in December, which most manufacturers passed on to the consumers. The deluxe segment-made up of value for money and feature-rich bikes in the 100-125 cc category-grew by 15.2 per cent. The 125-250 cc category-grew at 8.8 per cent. The pace of growth has fallen from last year's levels. There is no doubt that the higher interest rates have brought down growth. Nevertheless, this segment was still able to clock a growth rate in high single digits mainly because of the excitement caused by a slew of new models that came into this segment during the year. The bigger story, of course, is that buyers in small-town India and rural India, as well as employees of the state and Central government, were relatively less affected by the slowdown, and this benefitted the two wheeler industry.

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VISION
Hero Honda now the leader in the two wheeler industry. Leaders are not born, they evolve over time. It all started on the auspicious. Baisakhi Day the 13th of April 1984, when the Hero Honda Motor Company joined hands. On its journey to take on the No. 1 morale, Hero Honda created some prominent milestones.. This leadership has been achieved only because of its philosophy to excel in all areas. In fact, passion to excel is a credo of the entire Hero Honda family and is a way of life in Hero Honda. The changing Scenario of increasing competition and the entry of new brands has made the credo even more relevant. It serves as a constant reminder to ensure excellence in providing service to the customer. They are providing outstanding customer service. It is in keeping with Hero Hondas own passionate commitment to provide ultimate customer satisfaction. Today, they consistently meet and exceed all requirement on quality, cost and delivery. The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena.

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OBJECTIVES

Hero Hondas mission is to strive for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At the same time maintain the highest standards of ethics and social responsibilities. This mission is what drives Hero Honda to new heights in excellence and helps the organization forge a unique and mutually beneficial relationship with all its stake holders.

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ACHIEVEMENTS

AWARDS AND ACCOLADES

Year 2009

Awards & Recognitions

ET Awards for Corporate Excellence - Hero Honda is the winner of the Company of the Year" award for 2008 - 09. NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV Profit Business Leadership Award 2008" Top Gear Design Awards 2008 - Hunk Bike of the Year Award NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to Hunk in Bike category India Times Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards - Customer and Brand Loyalty Award in Automobile (two-wheeler) sector Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty Program in Automobile category NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year Overdrive Magazine - Bike Manufacturer of the year TNS Voice of the Customer Awards: No.1 executive motorcycle Splendor NXG No.1 standard motorcycle CD Deluxe

2008

No. premium motorcycle CBZ Xtreme

2007

The NDTV Profit Car India & Bike India Awards 2007 in the following category: Overall "Bike of the Year" - CBZ X-treme "Bike of the Year" - CBZ X-treme (up to 150 cc category)

"Bike Technology of the Year" - Glamour PGM FI

"Auto Tech of the Year" - Glamour PGM FI by Overdrive Magazine.

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"Bike of the Year" - CBZ X-treme by Overdrive Magazine. Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine Most Trusted Company , by TNS Voice of the Customer Awards 2006. CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006. 2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed companies. No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards 2006: Splendor Plus (Executive) CD Deluxe (Entry)

Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey 2006. Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler Company). Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet - American Express Corporate Awards 2006. Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz Consumer Awards 2006. Certificate of Export Excellence for outstanding export performance during 2003-04 for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category: Bike Maker of the Year Bike of the Year - Achiever Bike of the Year - Achiever (up to 150 cc category) Bike of the Year - Glamour (up to 125 cc category)

2005

NDTV Viewers' Choice Award to Glamour in the bike category

Awaaz Consumer Awards 2005 - India's most preferred two-wheeler brand by CNBC in the 'Automobiles' category. Bike Maker of the Year Award by Overdrive Magazine. ICWAI National Award for Excellence (Second) in Cost Management 2004 in the private sector

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Marketing analysis of Hero Motocorp

category by ICWAI. 10th Motilal Oswal Wealth Creator Award for as the most consistent wealth creator for the period 1991-2005. 2004 Winner of the Review 200 - Asia's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). GVC Level 1 (Highest Rating) by CRISIL for corporate Governance. Adjudged as the Best Value Creator - Large Size Companies 2003-04 by The Outlook Money. Corporate Excellence Award 2004 by Indian Institute of Materials Management. Adjudged as the Organization with Innovative HR Practices by HT Power Jobs for HR Excellence. ICSI National Award for Excellence in Corporate Governance 2004 by The Institute of Company Secretaries of India. 2003 Winner of the Review 200 - Asia 's Leading Companies Award (3rd Rank amongst the top 10 Indian companies). Most Respected Company in Automobile Sector by Business World. Bike Maker of the Year by Overdrive Magazine. 2002 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (4th Rank amongst the top 10 Indian companies). Company of the Year of ET Awards for Corporate Excellence. Ranked 4th in 'Overall Best Managed Company' category, ranked 3rd in 'Best Financial Management' and 'Best Operational Efficiency' category, ranked 6th in 'Overall Best Investor Relations' category, by Asiamoney. Highest Wealth Creating Company of the Year Award by the Money. GVC Level 1 (Highest Rating) by CRISIL for Corporate Governance. 2001 Bike Maker of the Year by Overdrive Magazine. Winner of the Review 200 - Asia 's Leading Companies Award (9th Rank amongst the top 10 Indian Companies). Winner of Three Leaves Award for showing Corporate Environment Responsibility in the Automobile Sector by Centre for Science & Environment.

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Marketing analysis of Hero Motocorp

1999 1995 1995 1991 National Productivity Award for the Best Productivity Award in the category of Automobile & Tractor presented by Vice President of India. The Analyst Award 1995 presented to Hero Honda Motors Ltd. on being ranked 9th amongst the most investor rewarding companies in India. National Award for outstanding contribution to the Development of Indian Small Scale Industry (NSIC Award - Presented by President of India). Economic Times-Harvard Business School Award for Corporate Performance to Hero Honda Motors Ltd.

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SALES

4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 2004-05 2005-06 2006-07 2007-08

3722000 3336756 3000751 2621400 3337142

2008-09

MARKET SHARE

5% 10%

5%

20%

60%

Hero Honda TVS Others

Bajaj yamaha

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METHODOLOGY

The project involves the study of four- strokes bike segment in two wheeler industry sector, which involved: 1. 2. 3. Market survey/ Researches Meeting the retailers and the customers Desk Research

RESEARCH APPROACH
I did two types of surveys (Data source): A. PRIMARY SURVEY
1.

P/S T1 was done visiting Hero Honda Motors Ltd. Authorized dealers office, Prakash Motors, J.C.Road regarding segmentation, targeting and positioning of their brands in the two wheeler sector. A lot of desk research was also done.

2.

P/S T2 conducted by visiting Hero Honda Motors Ltd. And retailers of Hero Honda {Khanna Automobiles & ESS AAY Agencies , auto needs(INDIA) Pvt.Ltd).Basic objective was to know their product price, distribution channel, their customers , their process of segmentation ,targeting and positioning in the problems faced by

the customers and lastly their views about the model.

3.

P/S T3 conducted by taking views of the customers using this model of Hero Honda i.e. Hero Honda splendor. Their view points About the model, their grievances/ complaints about it. Last but not the least their views about modification required in it.

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Marketing analysis of Hero Motocorp RESEARCH INSTRUMENT

The research instrument used was a structural questionnaire. It was formulated after detailed discussion. SAMPLING PLAN a) sampling unit: The sampling unit constituted the people in the middle income going in for bikes. b) sampling size: the sample size consists of 45 customers, out of which 5 refused to fill the questionnaire and 5 forms were found incomplete. c) sampling procedure : Convenience sampling. B) SECONDARY SURVEY
1)

S/S T1 was conducted gaining information from different magazines newspaper. And on company from their annual reports and balance sheets and their website.

2)

Promotional strategies used at present like sponsoring programme and various event which have no direct bearing on the product. However the main focus is to influence youth- the largest group. e.g. Hero Honda Sa Re Ga Ma Pa.

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Marketing analysis of Hero Motocorp SPLENDOR+

The Ex-Showroom Prices Bangalore 40,589 Mumbai 41,000 Engine Displacement -Clutch type Clutch Primary Clutch Secondary Transmission Final Drive Ignition Starting Frame Suspension (Front) Suspension (Rear) 4-stroke, OHC, single cylinder, air-cooled 97.2cc Manual Multi-plate wet 4-speed constant mesh Roller chain Kick starter Kick starter Double cradle tubular type Telescopic hydraulic fork Swing-arm with hydraulic dampers

Dimensions (LxWxH) 1950x720x1040mm Wheel Base Ground Clearance Dry Weight Tyres:Front/Rear Max.Power Max.Speed 1230 mm 159 mm 100.3 kg 2.75"x18"/2.75"x18" 7.2 PS @ 8500 rpm 90 km/h

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Fuel Tank Capacity 10.5 ltr (1.4 ltr reserve)

CBZ X-TREME
Specifications Displacement Power Torque Acceleration Bore x stroke Compression ration Type of brake Front Rear Type of engine Fuel Tank Capacity Disc type (130 mm diameter) Drum (130 mm diameter) 4-stroke, single cylinder, air-cooled,ATFT 12.5 liters (Full) 2.5 liters (Reserve) Available in attractive colors Black-Tahitian Blue-Candy Blazing Red - Sparkling Silver Metallic Tasmania Green - Sienna Gold Metallic * Hero Honda CBZ meets the India 2001 Emission Norms. ** Specifications are subject to change without prior notice. 150 cc 14.6 PS @ 8000 rpm 14.2nm @ 6500 rpm 0-60 km/h in 5 seconds 63.5 mm x 49.5 mm 8.5:1

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Marketing analysis of Hero Motocorp

Check out these unique features Transient Power Fuel Control (TPFC) System: For quick acceleration, providing a sudden surge when required. A feature which is used in some of the most advanced cars. Tachometer and Trip meter: Tachometer displays the engine rotation speed. And first time feature - the Trip meter, measures the distance traveled in a trip. Dynamic Vibration Dampers: The dampers incorporated in the handlebar, ensure that your ride is smooth and easy. Air injection system: Inject fresh air into the exhaust port, to meet emission norms. Unique Trapezoidal headlight: Gives the CBZ a distinctly stylish look and helps see clearly in the darkest of night. Multi lever Lockable seat: Provides storage space. It also doubles as an antitheft mechanism for the CDI unit, R R Unit and the battery, as the side covers can be opened only after unlocking the seat. Zero crank case evaporative emission: A pollution control feature so advanced that it is for the first time in India. keeping alive the Hero Honda tradition of special care for the environment. So come, test ride the Hero Honda CBZ -XTREME. Unplug your imagination. Motorcycling Unplugged Equipped with 5 gears and a 150 cc engine that generates 14.6 PS power. Enough to take it from 0-60 km/h in just 5 seconds. And to effortlessly touch the top speed of 100 km/h. The CBZ-XTREME also has the widest rear tyre - with a unique treat pattern that is not available on any Indian motorcycle; and large, 130 mm drum brakes. Front disc brakes, it enhances the braking performance.

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Marketing analysis of Hero Motocorp KARIZMA

Specification Engine Displacement Medium Power Gar Box Clutch Max speed Acceleration Frame Suspension (Front) Suspension (Rear) Brake Type: (Front) (Rear) Final Drive Battery Ignition Starting Wheel base Ground clearance Length Width Height 4-Stroke, Single Cylinder, Air Cooled, OHC 223 cc 16.8 BHP at 6000 rpm 5-Speed constant mash Multi-plus wat type 125 km/h 0 to 60 km/h in 3.8 seconds Single Cradle Tubular Diamond Type Telescopic Hydraulic Front Fork Swing arm with 5 step adjustable Hydraulic shock observer 276 mm disc type 130mm drum type Roller Chain 12V-3 Ah (Kick Start) 12V-7Ah (Self start) Digital CDI system (AMI)* Kick Starter/Self Starter** 1355 mm 150 mm 2125 mm 755 mm 1160 mm

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Marketing analysis of Hero Motocorp

Product Range and New Models: The Company's product range includes "Splendor+" which is the largest selling motorcycle brand in the world with over 10 lacs vehicles sold in 2008-09. A cumulative over 40 million customers are the real foundation of the company's strength. The total shall soon cross the 7 million mark. Its volumes have been growing at a strong pace of 40% p.a. over the last five years. The Company launched a new 100 cc model "Passion pro" in June 2008. The motorcycle is focused on style and contemporary design, compared to the Company's earlier motorcycles that were focused on utility and/or style. "Passion pro" has received an excellent response from the market and has established itself well, with sales reaching a level of 29000 units in august 2008, within just three months of its launch.

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Marketing analysis of Hero Motocorp PASSION PRO

Specification Engine Bore x Stroke Displacement Carburetor Clutch Transmission Final Drive Ignition Starting Frame Suspension (Fr.) Suspension (Rr.) Types of Brakes (Fr.) Dimensions (LxWxH) Wheel Base Dry Weight Tyres (Fr./Rr.) Max. Power Max. Torque Acceleration Max. Speed 4-Stroke, Single Cylinder, Air Cooled 63.5 mm x 49.5 mm 156.8 cc Side Draft Type (With TPFC) Multiplate Wet Type 5-Speed, Constant Mesh Roller Chain Electronic CDI Kick Starter Diamond Tubular Type Telescopic Hydraulic Fork Swing Arm with 5-Step Adjustable Hydraulic Damper Drum Version (130 mm Dia.) Disc Version Caliper Type (Rr.) Drum (130mm Dia.) 2090 mm x 755 mm x 1115 mm 1330 mm 130 kg (2.75 x 18-42 P) /(100/90 x 18-56P) 12.8 PS @ 8000 rpm 1.26 kgm @ 6500 rpm 0 - 60 km/h in 5 seconds 100 km/h

Compression Ratio 8.5 : 1 Engine Oil Capacity 1.2 Litres

Fuel Tank Capacity 12.5 Litres (2.5 Litres Reserve)

Ground Clearance 150 mm

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Marketing analysis of Hero Motocorp

Hero Honda Unveils 225-cc Karizma ZMR Hero Honda Motors Ltd has launched 225-cc motorcycle Karizma ZMR (pronounced karitzma), priced at Rs 91,000 (ex-showroom, New Bangalore). Initially, the premium sports bike will be rolled out in top 375 dealerships (out of its network of 450 dealerships) in 105 towns. Company managing director Pawan Munjal hoped to sell around 30,000 units of Karizma in 2009-10. Between Karizma and CBZ, we would sell over 55,000 units this fiscal. Margins are certainly better than what we can get in entry-level bikes. The company was currently working on the next generation of engines, which would drive a wide range of products in the future, including a new batch of bikes targeted at the volume segment in fiscal 2010-11. The company has plans to rollout a couple of variants during SeptemberOctober. Mr. Munjal said that the company was waiting for the feasibility report which will be out in november 2009 to take a decision on whether to utilize the existing facilities for further capacity expansion or to set up a separate Greenfield operation. Weve already stretched capacities up by around 25 per cent. We certainly need more capacity to grow, Mr. Munjal said. Hero Honda is looking at double digit growth for volume sales, turnover, and PAT. Company vice-president (marketing) Anil Dua said: We are expecting double digit growth. A clearer picture will emerge only after the first quarter. Fill it ,Shut it and Forget it is the slogan that one remembers of Hero Honda in the early days of its bike campaigning. Now, is it moving towards shut it and forget it?? Lets see. For years, Hero Honda has dominated the 2 wheelers market with its CD100, splendor and Passion (relatively new).Now, things are a bit

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different as there is a lot of cut throat competition as the market is dancing to the tunes of the customer.CBZ-XTREME is a bike which is good at looks but the same cannot be said about its performance. With the launches of FZ16, GS150r and pulsar150(revised) there was a new segment which was open where there was an emphasis on power and fuel economy also .And now, everybody is vying to take the honors for leadership in this segment. 1)Price: Somehow, this still is a major factor in India when people buy bikes. They cost around Rs. 38,000 to Rs 58,200 with the disc brakes in most cities and around Rs62,000 for the electric start option. 2)Looks and Features: We as humans, first form an impression about things by the way they look to our eyes and it goes without saying that bikes should be appealing to the eyes. Tank shape and contours: The tank is one of the components that make a bike look like Mr. Handsome or Mr. Ugly. AMI:Advanced Microprocessor Ignition system which facilitates a good mileage, pickup with better control on ignition timing. Colors: The Hero Honda bikes come with 9 colors with at least 4 of them good for nothing. 3) Suspension ,Stability and Reliability: Suspension: Should be definitely among the best in the class and should not be the prime suspect for your back problems. Hero Honda gives you adjustable shocks which can be tuned for your liking. Stability: hero Honda bikes are very stable as compared to any other bike manufacturer.

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needed.

Reliability: bikes are extremely reliable and very low maintenance is

4) Fuel economy and Electricals: Fuel Economy: This definitely will play on the buying minds if the bike has to succeed. Electricals: The lighting should be the best. 5)Fit and finish: The quality feel is on the higher side and it definitely gives a lot of satisfaction when one owns one. 6)Specifications: Engine, Displacement, Max power, Gear box, Frame, Cradle, Weight, Top speed, Fuel economy, Braking, Electric start (Optional) 7) Riding impressions: The pickup is on the faster side of decent and definitely bound to be of some help in the city traffic for short and quick overtaking. The engine should sound soft. The seating position should be comfortable. 8) Publicity: This is the critical aspect of any marketing strategy which has a great impact in the minds of the youth who yearn to have a bike. 9) Verdict: This is the final decision which the customer makes after getting exposed to all the steps said above.

PRICING
Pricing is a important component of marketing mix of the firm. Determining the prices of different products of a firm is very difficult task of the marketing manager. Price denotes money value of a product. If represent the amount of money for which a product can be exchange. In other words, prices represents the money which the buyer pays to the seller for a product price represent the exchange value of goods and services in terms of money. Price is all around.

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Price factor has very well been touched by the manufacturers. The pricing strategy of the company is very set. they price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment and demand of the product in the market. A pricing strategy that ensured an average manufacturer margin that game dealer an adequate return and created a reputation with consumers like a company selling a good quality product at a reasonable price. Industry focus them selves the low cost producer with good quality and aimed to maintain the price advantage in every market of two wheelers. Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. I fixes customer centric pricing that provide customer total satisfaction. Hero Hondas pricing objectives are: List price, Discount , Financing schemes, Credit terms , Maximize profits Hero Honda group ensures an easily affordable pricing through excellent transportation to common man. It fixes customer centric pricing that provides the customer with total satisfaction.

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Marketing analysis of Hero Motocorp

These are some of the Slogan for every product (Bike) and these are following:CD-100 CD100SS Splendor Street Smart Passion : : : : : Fill it, shut it, Forget it. Tough and Rugged. Designed to Excel. License to enjoy. When style matters, Bike born in studio not in factory. CBZ : CBZ-Xtreme HUNK KARIZMA Hero Honda Motorcycling Unplugged. : : : : live xtreme because muscle mattres. Jet sets go. Leading the way.

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AUTO MOBILE SALES FIGURE

Bajaj Auto Ltd.

Hero Honda Motor

Royal Enfield Motors

TVS Motor Co. Yamaha Motors India

0 2007-08

1000000

2000000 2008-09

3000000

4000000

Company Name Yamaha Motors India TVS Motor Co. Royal Enfield Motors Hero Honda Motor Bajaj Auto Ltd.

April- Sep. 2007-08 286624 365654 20235 15,22,000 5000440

April-Sep 2008-09 645245 624564 25235 16,37,142 6025648

Sales and figure for the first six months of fiscal 2008-2009 ,shows a mixed trend. In order words, some segment are witness growth and some decline. In the two wheeler segment, motorcycles continue to show robust growth. During the period under review sales of motorcycles rose 43.03

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percent to 37,33,142 numbers. All the major players recorded growth. Market leader Hero Honda sales increased 30.05 percent to 819.167 numbers. Interestingly, third seeded TVS saw its sales grow 98.93 per cent to the period under review, production of the century increased 44.91 percent to 1,876,015 numbers.

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GROWTH OF THE INDUSTRY

35 30 25 20 15 10 5 0 2004-05 2005-06 2006-07 2007-08 2008-09 16 23.02 26.6 25.21

30.4

STEADY CLIMB (all figures in Rs. Crore)

3500 3000 2500 2000 1500 1000 500 0 26.5 2003-04 641 50.4 2004-05 783 1,156 250 1,553 2,270

3,170

76.7 2005-06

121.4 2006-07

192.1 2007-08

2008-09

Profit After Tax

Total Income

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COMPARISON OF HERO HONDAS THREE PRODUCTS

CBZ-X-TREME

While CBZ was introduced the market for 150c segment war not quite well developed. It was a niche market with a number of

unsatisfied and unrecognized customer who aspired for more power, life style and speed. So it can be concluded that the product the strategy was diversification. The customers were to be taught about their unrealized needs. For that the company had to use informative as well as aspirational advertisement To make the customers understand that the bike was for the upper class market, it was priced a premium also.

KARIZMA

In the case of karizma, the market for 200+ segment was Non existing. The company introduced the bike as a new product. For the company it was the first bike in the highly

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demanded 200+cc segment. Here the company has adopted the product development strategy.

The company has priced this product with respect to future competetion.

SPLENDOR+

Splendor+ came to the scenario as a more efficient bike catering to the needs of the 100cc segment, which at that time was served by many others.

The analysis reveals that the company has adopted Market penetration as its strategy. For that, advertising mainly focusing on its superior quality, were then released. Fuel efficiency coupled with zero maintenance was projected as a key differentiator.

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Some of the bikes with there ex- showroom prices.

Passion Price Ex showroom:46526/-

CBZ Exteme Price Ex showroom:57501/-

Splendor + Price Ex showroom:42794/-

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Karizma Price Ex showroom:81217/-

Achiever Price Ex showroom:56630/-

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Marketing analysis of Hero Motocorp

Glamour Price Ex showroom:49618/-

Hunk Price Ex showroom:58325/-

36 Above 10%

18-20 9%

CD Dawn

ANALYSIS
31-35 37%

Price Ex showroom:38884/21-25 33%

AGE GROUP

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INCOME GROUP (PER ANNUM IN THOUSAND)

150-175 11% 125-150 11%

175 above 4%

75-100 17%

100-125 57%

CLASSIFICATION SHOWING STYLING OPINION OF HERO HONDA BIKES AMONG THE RESPONDENTS

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SR.N O. 01 02 03

STYLING OPINION ATTRACTIVE GOOD NEED MORE CHANGE

TOT AL 56 34 10

PERCENTA GE 56% 34% 10%

Analysis
From the above table 56% i.e. 56 of the respondents find the bikes attractive followed b y 34% or 34 respondents who find it good and 10% i.e. 10 respondents feeling it need more change.

CLESSIFICTION OF RESPONDENTS ON THE BASIS OF THEIR SEX SR.N O. SEX TOT AL PERCENTA GE

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01 02

MALE FEMALE

100 0

100% 0%

ANALYSIS:

From the above table we can that male respondents have more decision making power than females with 100% of the respondents compared to none the female category.

CLASSIFICTION OF RESPONDENTS ON THE BASIS OF THER SEX

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Inference:

Gender plays an important role in any consumable product market. The sex difference has major effects and various consumption and the purchasing pattern. This implies that marketers should neglect any of the sexes. However today family man plays an important role in making purchase decision.

CLASSSIFICATION OF RESPONDENTS ON THE BASIS OF OCCCUPATION SR.N OCCUPATION TOT O. AL 01 BUSINESS 15 02 GOVT.EMPLOY 25
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PERCENTA GE 15% 25%

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03 04

EE STUDENT 10 PVT.EMPLOYEE 60

10% 60%

ANALYSIS:

From the above table it is clear that 60% i.e. 60 respondents are in pvt sector, followed by 25% or 25% respondents are govt. employees, 15% or 15 respondents were in business and 10% students i.e. 10 respondents being the least.

CLASSSIFICATION OF RESPONDENTS ON THE BASIS OF OCCCUPATION

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INFERENCE:

Occupation is an important differentiating factor, which the dealer should consider, thus the dealer should have a best interest of this segment. The dealer should concentrate on the business category and the govt. employees as they are stable category having a say in market.

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR INCOME SR.N INCOME

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TOT

PERCENTA
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O. 01 02 03

BELOW 10,000 RS.10,00120,000 20,001 & ABOVE

AL 30 50 20

GE 30% 50% 20%

Analysis:

From the above table it can be observed that 50% of respondents belong to 10,001-20,000 income group, followed by 30% in the income group below 10,000 and 20% in the income group 20,001 and above

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR INCOME

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Inferences:

Income is an important differentiating factor that influences buying behavior. This income comprises of spend able income and savings from the above graph it is clear that the income of the people varies from below 10000 to 20000 and above and more so the main customer of millennium motors are middle and upper middle class people.

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR QUALIFICATION

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SR.N EDUCATIONA TOT O. L AL QUALIFICATI ON 01 GRADUATE 50 02 POST 30 GRADUATE 03 DIPLOMA 08 04 SSLC & BELOW 12

PERCENTA GE

50% 30% 08% 12%

Analysis:

From the above table 50% of the respondents are graduate & below followed by 30% post graduates, 8% diploma holders and 12% sslc and below

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR QUALIFICATION

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Inference:
From the above graph, it is clear that the customers are educated thus it is easy to understand about the spares and take the right decision in choosing the spare. A special reference should be made to encourage and make aware the genuineness of spares to the diploma holders and not educated class

CLASSIFICATION SHOWING STYLING OPINION OF HERO HONDA BIKES AMONG THE RESPONDENTS

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Inference:
From the above graph it is clear that the customer finds it the styling opinion Attractive but still feel it needs some change. Majority of the respondents feel that style or look is a major factor in influencing the minds of the customers to purchase a given commodity or in this case a motorcycle.

CLASSIFICATION SHOWING RESPONDENTS VIEW OF FUEL EFFICIENCY OF HERO HONDA BIKES

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SR.N O. 01 02 03

FUEL EFFICIENCY GOOD AVERAGE NEED TO IMPROVE

TOT AL 62 28 10

PERCENTA GE 62% 28% 10%

Analysis

From the table it is clear that 62% of the respondents feel that the fuel efficiency is good whereas 28% feel it is average and 10%suggest that it need to improve.

CLASSIFICATION SHOWING RESPONDENTS VIEW OF FUEL EFFICIENCY OF HERO HONDA BIKES

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Inference:

From the above graph it is clear that the fuel efficiency of the bike is good with very few customers feeling the need for it to improve. With greater fuel efficiency more mileage and better savings help in reducing the cost of petrol budgeting monthly on the owner of the bike.

CLASSIFICATION SHOWING RESPONDENTS VIEW OF POWER OF HERO HONDA BIKES

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SR.N O. 01 02 03

POWER GOOD AVERAGE NEED TO IMPROVE

TOT AL 60 30 10

PERCENTA GE 60% 30% 10%

Analysis:

From the table it is clear that 60% of the respondents feel that the fuel efficiency is good whereas 30% feel that it is average and 10% suggest that it needs to improve.

CLASSIFICATION SHOWING RESPONDENTS VIEW OF POWER OF HERO HONDA BIKES

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Inference:
From the above graph it is clear that the view power of the bike is good with very few customers feeling the need for it to improve. A view is what a person compares between competitors bikes great view power the better is the deal.

TABLE SHOWING RESPONDENTS VIEW OF MAINTENANCE OF HERO HONDA BIKES

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SR.N MAINTENANC TOT O. E AL ZERO 01 36 02 03

MAINTENANCE VERY LESS MORE MAINTENANCE

PERCENTA GE 36% 60% 04%

60 04

Analysis:

From the above table 60% of the respondents feel that the bikes require very less maintenance whereas 36% feel it requires zero maintenance and 4% feeling the maintenance is more.

CLASSIFICATION SHOWING RESPONDENTS VIEW OF MAINTENACE OF HERO HOND BIKES

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Inference:

From the above graph it can be inferred that there is a slight need for improvement but on the whole the maintenance required is very less. A motor cycle with zero maintenance is the ideal bike for today as buyers are money aware and do not want to waste money on regular maintenance.

CLASSIFICATION SHOWING RESPONDENTS OPINION ON THE NUMBER OF NEW MODELS RELEASED BY HERO HONDA IN A YEAR

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SR. NO . 01 02

SATISFACTION LEVEL
YES NO

TOTA PERCENTA L GE 88 12 88% 12%

Analysis:

From the above analysis it is seen that 88% feel that the new models are satisfactory whereas 12% feel that it is below satisfaction level.

GRAPH SHOWING RESPONDENTS OPINION ON THE NUMBER OF NEW MODELS RELEASED BY HERO HONDA IN A YEAR

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Inference:

From the above graph it is inferred that the company has improved on its new bikes and they are above satisfaction level. With changing technologies and improved mechanisms the company can improve on its speed aerodynamics and mileage capacity.

TABLE SHOWING RESPONDENTS OPINION OF PROCESSING TIME TAKEN AT PRAKASH MOTORS

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SR.N OPINON ON O. PROCESSING TIME REASONABLE 01 QUICK PROCESSING 02 03

TAKES LONG TIME

TOTA PERCENTA L GE 40 60
0

40% 60%
0%

Analysis:

From the above graph it is seen that the processing time taken is quick with 60% of the customers opting for followed by 40% saying that it is reasonable and no customers have to say that it takes long time.

CLSSIFICATION SHOWING RESPONDENTS OPINION OF PROCESSING TIME TAKEN AT PRAKASH MOTORS

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Inference:

It is inferred that the processing time taken is up to the mark but it has to improve to improve for customers to purchase the vehicle. With customer executives possessing greater qualities in marketing strategies ideas can be sought to improve on the need for quick service.

CLSSIFICATION SHOWING RESPONDENTS OPINION ON DOCUMENTS REQUIRED FOR INSTALLMENT PURCHASE

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SR.N O.

DOCUMENTS REQUIRED FOR INSTALLMENT PURCHASE

TOO MANY MANAGEABLE

TOTA PERCENTA L GE

01 02

0 100

0% 100%

Analysis:

From the above table it is analyzed that the documents required for installments required to purchase the vehicle is manageable with 100% of the responding to it.

TABLE SHOWING RESPONDENTS OPINION ON WHETHER THE LATEST VERSION OF HERO HONDA MOTOR CYCLES IS DISPLAYED

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SR.N O. 01 02

DISPLAY OF TOTA LATEST VERSION L OF HERO HONDA BIKES YES 92 NO 8

PERCENTA GE 92% 8%

Analysis:

From the above table it is analyzed that prakash motors are displaying the latest bikes with 92% of the respondents followed by 8% saying that it is not displaying it.

GRAPH SHOWING RESPONDENTS OPINION ON HETHER THE LATEST VERSION OF HERO HONDA MOTOR CYCLES IS DISPLAYED

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Inference:

From the above graph it is seen that Hero Honda motors are keen to improve their sales by displaying new models. Specially lit rotating stands can be a added attraction than still bikes on the front of the showroom to capture customers attention. Hero Honda motors can also keep test rides for eager customers.

CLASSIFICATION SHOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS FIND ALL THE REQUIRED ACCESSORIES & SPARE PARTS OF HERO HONDA AT PRAKASH MOTERS

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SR. ACCESSORIES & TOTA PERCENTA NO SPARE PARTS OF L GE . HERO HONDA AT PRAKASH MOTERS 01 02
YES NO

88 12

88% 12%

Analysis:

From the above table it is analyzed that 88% of the respondents feel that all the required accessories and spares of Hero Honda motorcycles are available at prakash motors while 12% do not feel the same.

CLASSIFICATION SHOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS FIND ALL THE REQUIRED ACCESSORIES & SPARE PARTS OF HERO HONDA AT PRAKASH MOTERS

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Inference:

From the above graph it is inferred that prakash motors is the best place for purchasing spares and accessories of Hero Honda motorcycles but still there is slight need for improvement

CLASSIFICATION SHOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS WOULD RECOMMEND HERO HONDA MOTER CYCLE TO OTHERS

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SR. RECOMMEND NO HERO HONDA . MOTER CYCLE TO OTHERS 01 YES 02 NO

TOTA PERCENTA L GE

96 04

96% 04%

Analysis:

From the above table it is seen that 96% of the respondents are happy with the features of Hero Honda and hence recommend it to others while 4% do not recommend.

CLASSIFICATION SHOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS WOULD RECOMMEND HERO HONDA MOTER CYCLE TO OTHERS

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Inference:

From the above inference it is clear that if the service and other factors are good the customers are sure to recommend the same to others that is why the customer of Hero Honda are recommending it to others.

TABLE SHOWING RESPONDENTS OPINION ON SERVICE OF HERO HONDA MOTORS

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SR. OPINION ON TOTA PERCENTA NO SERVICE OF HERO L GE . HONDA MOTORS 01 02 03

IMMEDIATE & EFFICIENT REASONABLY EFEICIENT NEEDS TO IMPROVE

84 16 0

84% 16% 0%

Analysis:

From the above table it is seen that the service given by Hero Honda motors is immediate and efficient with 84% of the respondents followed by 16% saying that they are reasonably efficient.

CLASSIFICATION OF RESPONDENTS OPINION ON SERVICE OF HERO HONDA MOTORS

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Inference:

From the above graph it is seen that Hero Honda motors are efficient and immediate in their service towards the customers. The efficiency provides a backbone for the companys future with improvisation more targets can be achieved.

TABLE SOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS WOULD RECOMMEND HERO HONDA MOTORS TO OTHERS

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SR. RECOMMEND NO HERO HONDA . MOTORS TO OTHERS 01 YES 02 NO

TOTA PERCENTA L GE

100 0

100% 0%

Analysis:

From the above table it is seem that 100% of the respondents with the features of prakash motors and hence recommend it to others.

GRAPH SOWING RESPONDENTS OPINION ON WHETHER RESPONDENTS WOULD RECOMMEND PRAKASH MOTORS TO OTHERS

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Inference:
From the above graph it is seen that prakash motors have gained a good rapport with their customer so its customers have recommended it to others. Word of mouth campaign is the best way to let people know that you exist. This campaign is the oldest campaign, with greater efforts prakash motors can see to it that people recommend its showroom to others.

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I preferred Hero Honda Splendor+ than other bike? MODEL
71 Premium/lifestyle category 70 (Rs 60000 and above)
60 Commuter/Smart Category (Rs 48000-60000) 50 40 Economy category (Rs 35000-48000) 30 20 10 0 Maintenance cost Looks Physical efforts Fuel economy 80

2008 45.25 64.80

33 21.71 14

2009
66 29.16

56.16 32.95

MARKET SHARES (%)

In the typical Boston Consulting Group (BCG) matrix, a company could move from 'star' to 'cash cow' pretty quickly say a year or two and therefore one needs to ride these two years completely and then get into another stock which is going to turn into a star, at the stage of emergence.

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RESULTS
After a study of various Hero Honda customers, we found the following: Geographical Distribution: About 98% of the customers surveyed belong to congested areas of Bangalore. Age group of customers: About 90% of the customers were within in the age group of 20-35 Income group of customers: Most of the customers surveyed belong to middle income group. Occupation of the customers: 84% of the customers surveyed were official/ salesmen and 11% were students & first jobbers. Percentage share of HHML in two wheeler segment: HHML holds 60% share. Customers preferences while purchasing a bike: Fuel efficiency, looks, Low maintenance cost, Reliability Competitors of Hero Honda: According to the survey reports the main rivals of Hero Honda are Yamaha, Bajaj Auto, and TVS. Preference of Hero Honda over competitors: About 89% of the customers believe that Hero Honda is better than the competitors because of low maintenance cost and fuel efficiency.

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RESOURCE LED STRATEGIC DEVELOPMENT

The range of resource based views on developing alternative paths of business development can be examined using: The Growth/Share Matrix Core Competencies Generic Strategy

The Growth/Share Matrix for Hero Honda Motors Limited: This matrix has often been used to examine the relative growth prospects of a firms line of products. In the matrix, activities are classified according to their growth rate and there competitive position or market share.

BUSINESS

GROWTH

STAR S

RATE

HIGH

QUESTI ON MARK

LOW

CASH COWS

DO GS

HIGH

LOW

RELATIVE COMPETITIVE POSITION (MARKET SHARE)

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Hero Honda Motors Limited is a Star which has high market share and a high growth rate. They developed fuel efficient motorcycles at a time when everyone was producing 2-stroke motorcycles. This made them gain market share at a rapid pace and helped them to become the market leaders in the motorcycle segment. Having set its focus on customer satisfaction, the company is determined to provide products and services that meet the quality, performance and price aspirations of their customers. HHML wants to provide its customers with value for their money. Hero Honda's motorcycles account for over 60% of the entire motorcycles market. The various brands of Hero Honda are Splendor, CBZ, Passion, karizma, and Acheiver. Splendor enjoys nearly 30% of the total motorcycles market.

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SWOT ANALYSIS
Strengths: Technological support from Honda Motors, Japan. The company has a deeply penetrated dealer network. The company provides good after sales service through its wellestablished dealer network.

The company enjoys a huge market share and well established brands like Splendor+, Passion+, CBZ-xtreme etc.

Weaknesses: Hero Honda depends on Honda for new products and this is a big weakness.

The company doesn't have a product catering to Rs. 25,000 - Rs. 35,000 segment, and the company might suffer on account of this as the imported motorcycles and foreign players' motorcycles are expected to cater to this particular segment of the market. This can result in fall in the market share of the company.

The company imports about 31% of its spare requirements. This makes the company vulnerable to the import policies of the government. It also exposes them to the exchange rate risk.

Less promotion:
The promotions and ads of Hero Honda are very less as compared to its competitors.

High maintenance:
Some of the products of hero Honda like Karizma require high maintenance.

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Marketing analysis of Hero Motocorp Lack of recycling scrap:

It expected that by 2020 scrap generated by end of life vehicles in India would be about 2.5 million tonnes and 40% of it will come from two wheeler.But hero honda is not capable enough to recycle the scrap generated and may impose environmental threat. TVS Company has this facility and is future threat to this company as it can affect the future sales as well.

Labor relations:
In Hero Group there is no organized labor union and family members of employees find ready employment within Hero. The philosophy with regard to labor management is "Hero is growing, grow with Hero." Hero workers receive a uniform allowance, as well as House Rent Allowance (HRA) and Leave Travel Allowance (LTA). Extra benefits include medical check-ups not just for workers, but also for the immediate family members. For the majority of the production workers, who are hired through contractors, these benefits are out of reach. This and other problems lead to a strike and factory occupation by 4,000 temp workers in the Gurgaon plant in spring 2006.

Opportunities: The motorcycle segment is growing at the rate of 33%, which provides a great opportunity for the company to cash on.

Also it is experiencing a shift in the customer preference for 4-stroke mobikes (automatic scooters). This again provides an excellent opportunity to Hero Honda to leverage its market share and market leadership for sustained profitability.

Good will of the company:

If the company utilizes the good will they have gained so far from their customers, they can increase the sales performance by economizing the cost and few technical renovation of the product. With new launch they can be benefited at present market scenario like Karizma, Hunk has huge attraction

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towards the younger generation because of its style, sporty look, and high accelerating power and is stable at its feet even at high speeds.

Threats:

The technical collaboration with Honda is valid only for a period and this is a serious threat as they have been dependant on Honda for technology. Also Honda has set up its 100% subsidiary in India which has start producing motorcycles from 2008. This has further increased the competition.

The company has plans to foray into the scooter segment, which can also be a major threat for the future prospects of the company. The reason being that the consumers are shifting from scooters to motorcycles and at this hour moving from motorcycles to scooters doesn't sound logical.

Motorcycles form the major chunk of the sales revenue of Hero Honda. A small proportion of the revenue comes from the sales of spares.

Finance assistance:
Easy availability of finance is the main cause of sales growth and any restriction will hamper its growth prospects.

Inflation:
If inflation increases cost of raw material used in production will go high and selling price may go high that may decrease demand of the two wheeler.

Technical renovation aspect:

Competitor bike like pulsar and apache are threat to Hero Honda product like Karizma and Hunk in respect to fuel economy. So if they dont short out in the new launches and give something extra in its engineering performance it may affect in demand of this company product.

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CONCLUSION
From the customers survey and desk research we conclude that: "We are confident that we will continue getting technology from Honda." Honda, for its part, has also made similar statements. However, industry analysts do have doubts. Says an industry analyst, "Honda's track record in India does lead to some apprehensions. An analysis of Honda's past tie-ups in India would prove so. For instance, Honda exited the joint venture with Kinetic by selling its stake to the promoters and launched a replica of Kinetic Honda's ungeared scooter; its 60:40 ventures with SIEL for cars progressively became a 99:1 partnership and its venture with the Shriram group for gensets ended when it bought out Shriram's stake. This does throw up some questions with regards to the path ahead for Hero Honda." These examples prove that Honda has always wanted to have its own entity, says another analyst. Most of the customers of Hero Honda belong to congested areas. They mostly belong to middle class and are mostly officials/ executives. Thus, we conclude client has targeted the right segment. From the findings we conclude that a customers while purchasing a bike, customers takes into consideration mainly fuel efficiency, good looks, low maintenance cost and reliability. The main competitors of Hero Honda are Bajaj Auto, Yamaha and TVS. The consumer preference basically depends upon wider network and better services. Customers are influenced more to buy a product by advertisements rather than dealer friends or family recommendations.

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LIMITATIONS
1. Due to lack of time I was not able to cover many customers.
2.

As I reside in Bangalore, so customers of Bangalore were taken into account.

3. Answers given by the customers may be biased one.

4. 5.

Research work was confined to South Bangalore. Some time Co-operation from respondents was missing.

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RECOMMENDATIONS
After the complete analysis of entire assignment we put forward a set of recommendations which are a follows: Since the client has targeted the right segments, but the reason for the low sales of Hero Honda Cbz is high price. Moreover the client has positioned the bike as city ride made easy fuel efficient bike as a result of which if comes in direct competition with.

TVS Victor and Bajaj Boxer. But HHML is overlooking one feature in bike. Which is its low maintenance, and reliability (i.e. less chances of breakdown) which are 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 we recommended repositioning the bike.

In order to increase the market share, customers promotional activities should be encouraged through advertisements to attract the male & female segment. Hero Honda, if it starts functioning independently, has to innovate and develop their own technology to support their growth aspirations. The dissatisfied customers should be dealt with appropriately should be satisfied so that they do not break the relationship with company.

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BIBLIOGRAPHY

NEWS AND VIEWS FROM MARKETING DIVISION OF HERO HONDA. AME BUSINESS MAGAZINE. AUTO MAGAZINE. BUSINESS INDIA FINANCIAL EXPRESS BUSINESS LINE OVER DRIVE MAGAZINE. WWW. INDIAINFOLINE.COM WWW. HEROHONDA.COM

WWW.ECONOMICTIMES.COM

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QUESTIONNAIRE
CONSUMER SURVEY Name: ______________________ Address: _____________________ Q1. Please mention your age group 18-20 26-30 36- Above Q2.) Please mention your income group (per annum in thousand) 75-100 125-150 175 & above Q3) Gender Male Q4) Martial Status Married Unmarried Female 100-125 150-175 21-25 31-35

Q5) please mention your occupation 0 Officials Student Clerical or Salesmen First Jobbers Retired

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Q6) Name three motorcycle companies that come to your mind Hero Honda Motor Ltd. Bajaj Auto Ltd. Yamaha Motors Ltd. Royal Enfield TVS Ltd. Q7) what are the things that you look while purchasing a bike? Fuel efficiency Looks Low maintenance cost Reliability(less chances of breakdown) Least physical efforts Low price Q8) how did you get to know about Hero Honda that you having at present? Advertisement Family information Friends recommendation Dealers recommendation Q9) which other bike would you have preferred to buy? Yamaha motors Tvs motors others Bajaj motors

Q10) Prefer Hero Honda splendor than other bike because of: Fuel economy

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Less physical efforts Better looks Low maintenance cost Q11) Would prefer TVS apache to Hero Honda CBZ because of: Fuel economy Price Brand image Low maintenance cost Q12) what is the image of HERO HONDA in your mind? Economical Durable Smooth Bike Safe Bike Rough and Tough

Q13) Who is decision maker for purchasing bike in your family? (A) Father (B) Self [ ] [ ] (B) Mother (D) other [ ] [ ]

Q14) How you purchase bike? (A) By cash [ ] (B) By Loan [ ]

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Q15) What features you considers when you purchase bike please give the rank. attributes price Less maintenance Style Durability Mileage Easy driving Brand reputation Color excellent Very good good Average Poor Very poor

Q16) Rate the following attribute of show room Attributes Available After sales Services infrastructure 1 2 3 4 5

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Q17) From where are you purchasing___________? (A) Shivani Auto [ ] (B) prakash motors [ ] (C) Shiddi Auto [ ] (D) others [ ]

Q18) Rate the following schemes that attract you most.

attributes Special offer Exchange offer Special gift Cash discount

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Q19) Rate the following feature you have purchase hero Honda Bikes.

Attribute Mileage Available Price After service Pick up

give your suggestion.

____________________________________________________ ____________________________________________________ _________________________________________________

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HERO HONDA MOTORS LTD.

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