How to theory apply in to practical of marketing management to hero honda company

HERO HONDA MOTORS LTD , INDIA

10/18/2013 Babasabpatilfreepptmba.com 1

The two-wheeler industry has been in existence in the country since 1955.

The main key players who are dealing in this sector are Hero Honda, Bajaj, Yamaha, Honda, and TVS. Hero Honda is the biggest player in this sector in India


Bajaj is the first Indian two wheeler automobile company in the market since 1945 with the name M/s Bacharj trading corporation private limited.

In 1959 M/s Bacharj trading corporation private limited change its name as Bajaj Auto Ltd. Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers vehicles in 1959.


Hero Honda Motors Limited, based in Delhi, is the world's Largest manufacturer of motorcycles .

A joint venture that began in 1984 between the Hero Group of India and Honda of Japan.

Hero Honda's Splendor is the world's largest selling motorcycle.


Type : Public company BSE:HEROHONDA M

Founded: January 19, 1984 in Gurgaon,Haryana, India

Headquarters : New Delhi, India

Key people: Brijmohan Lal Munjal (chairman & founder)

Toshiaki Nakagawa (joint managing director)

Pawan Munjal (CEO)

Industry: Automotive

Products: Motorcycles, Scooters

Revenue: U$ 2.8 billion

Website: www.Herohonda.com


Hero Honda is world’s third largest 2-wheeler maker.

In the mid-1980s, Foreign companies permitted to enter the

Indian market through minority joint ventures.

Four Indo-Japanese joint ventures: Hero Honda, TVS

Suzuki, Bajaj Kawasaki and Kinetic Motor Company

(Kinetic Honda)

The 2006 Forbes 200 Most Respected companies list has

Hero Honda Motors ranked at 108.


Today Hero Honda has an assembly line

of 9 different models of motorcycles .

Currently the largest producer of

Two Wheelers in the world.

Sold 3 million bikes in the year 2005-06.


Vision of the Hero Honda is “to offer the highest quality at a reasonable price to meet the customers’ expectations and to exceed them”.

MISSION Hero Hondas mission is to strive for synergy

between technology,ststem 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.


Being the most fuel efficient Company.

To develop Appropriate product & excellent Quality.

To Meet the demands of the sophisticated markets in Europe & America.

To reach an unassailable pole position in the Indian Two Wheeler market.

To maintain high standard of ethics & social responsibilities.

To meet the quality performances & price aspirations of the customer.


1983 : Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

1984: Hero Honda Motors Ltd. incorporated

1985 :First motorcycle "CD 100" rolled out

1987:100,000th motorcycle produced

1991: 500,000th motorcycle produced

1992 : Raman Munjal Vidya Mandir inaugurated -

1994 : New motorcycle model - "Splendor" introduced

2000: 4,000,000th motorcycle produced Splendor declared 'World No. 1' - largest selling single two- wheeler model

2001: One million production in a single year : 5,000,000th motorcycle


2003: Becomes the 1st Indian Company to cross the 7 million sales Splendor has emerged as the World's largest selling model for the third calendar year in a row (2000, 2001, 2002) New motorcycle model - "Karizma" introduced

2005 : Hero Honda is the World No. 1 for the 4th year in a row Super Splendor , CD Deluxe , Glamour ,Achiever introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 : Hero Honda is the World No. 1

for the 5th year in a row


BRANDS CORE NEEDS AUXILARY NEEDS

1. Hero Honda Achiever Transportation Speed

2. Hero Honda CBZ

extreme

Transportation Stylish Look

3. Hero Honda CD

Dawn

Transportation Safety & economy

4. Hero Honda Glamour Transportation Glamorous look.


BRANDS CORE NEEDS AUXILARY NEEDS

6. HeroHonda

passion plus

Transportation Professional

7. Hero Honda

Pleasure

Transportation Light weight and

design

8. Hero Honda Hunk Transportation Stylish & new body

look

9. Hero Honda

Splendor

Transportation Mileage And good

performance


APPROACHES

(ORIENTATION)

EXTENT JUSTIFICATION

1.Production concept

Partially

Applicable

It is having good demand all

over India and it is supplying

as per the demand in the

market.


2.Product concept Partially

applicable

In most of the Hero Honda

brands, special features like self

start, digital speedometer &

other things are not included.

Ex : Hero Honda CD 100, CD

Dawn are not having these

features like self start, digital

speedometer. By this we can

justify that this company is not

adopting fully but adopting by

partially.

3.selling concept Partially

applicable

The company is adopted this

concept partially.

Ex : Offers during special

occasions. 10/18/2013 Babasabpatilfreepptmba.com 15

Hero Honda introduced First stroke bike in the Indian market.

Hero Honda bikes gives good mileage.

Huge sale network (3500 Dealers).

Better sale service.

It has the highest share in automobile sector.

It has a good brand image.

It gives better service for customers.


Suppose to be very sophisticated.

They have big gap between cubic capacities of its products.

Spare parts are too costly.


They should go in new segments of bikes.

There is large no. of young consumers in the market. Company has to focus on them.

They have big opportunities in heavy bike segments.

As government policies are amended against pollution in metro cities, Hero Honda being 4 stroke bike manufactures has great opportunities to explore its new innovations and technologies.


Main threats to Hero Honda are their competitors like Bajaj Auto Ltd.

TVS motors Ltd.

Yamaha Motors India.

Honda motorcycle and scooter India.

The cost of the product is very high in comparison to other companies.

Decreasing market share.



Hero Honda Ambition 133,135

Hero Honda CD Delux

Hero Honda Splendor , Splendor+ , Super Splendor, Splendor NXG

Hero Honda CBZ , CBZ Xtreme

Hero Honda Passion , Passion+ , Passion Pro

Hero Honda Karizma

Hero Honda Hunk

Hero Honda Pleasure

Hero Honda Glamour


HERO HONDA SUPER SPLENDOR

This Bike comes with 125 cc new generation quantum core engine with an output of 9 bhp (6.7 kw).

Its relaxing seating arrangement with other comfort features like less strain while clutching and declutching, low noise and less vibration engine etc, makes it more market friendly bike


For the convenience of the biker: Included trip meter, peep

hole, large utility box etc.

Some safety features: Included pass switch and push

cancel indicator switch, muffler with heat shield etc.


It is found in different colors: Frost Blue

Cloud Silver

Mono Tone Black

Dual Tone Black

Blazing Red


HERO HONDA SPLENDER PLUS

4 stroke single cylinder lair-cooled, OHC engine delivers power of 5.5 Kw (7.5PS) @ 8000 rpm . Running with the maximum mileage of 85 kmph, this bike is giving the optimum satisfaction for long journey.

Its double cradle frame gives the steadiness in biking. Its wider 1230 mm wheelbase provides the proper base for safer riding.


Lighting fitting included in it like multi reflector with halogen bulb makes the biking secured at every time.


It is found in different colors: Candy Tahitian Blue

Hi Performance Red

Blue Blaze Metallic

Cloud Silver Metallic

Chilli Green

Hi Granite Blue

Tornado Grey

Black with Blue Silver Stripe

Black Calliper Yellow

Black Old Stripe


HERO HONDA NXG

New front fairing and a new visor

New design fuel tank with knee recesses on either side and features a chrome fuel tank lid.

New body panels and sleek body graphics.

New instrument panel - trip meter housed in speedometer, fuel gauge.

Stylish tail lamp and die - cast alloy grab rail.

160mm of ground clearance.


Colors

Candy blazing red

Force Silver

Vibrant blue

Classy maroon

Blacks


HERO HONDA KARIZMA

Karizma comes with a 223cc single cylinder. air-cooled, four stroke engine that packs a maximum power of 17bhp at 7000rpm.

Separately from breaking the 200cc barrier, the bike breaks fresh basis in the speeding up front.

Karizma conquers the four-second barrier for zero to sixty kph, doing it 3.8 seconds.


HERO HONDA CBZ

XTREME

Maximum torque id of 12.80

N-m @ 6500 rpm

Self and kick start options

Powerful windscreen

Maximum power is 10.6 KW

@ 8500 rpm

Minimum 12.3 liters fuel tank

capacity with 1.5 liters as

usable reserve


HERO HONDA PASSION PLUS

The Passion Plus is prepared with

a four-stroke, air-cooled, single

cylinder engine..

The Passion Plus slot in a host of

new styling features counting

two-tone coolers, body colored

mirrors, white dial gadget come

together.


wider passenger seating grip. New multi-reflector

headlight and winkers add to the glamour proportion.

The Passion Plus comes with a not obligatory front disc

brake for better braking. It attains a reputable utmost

speed of 85kph and has a fuel tank capability of 12.8

liters.


HERO HONDA PLEASURE

The Pleasure comes with a four-

stroke, air-cooled, single cylinder

engine that gives a dislocation of

102cc.

Pleasure boasts of characteristic

features such as an ABS body,

axiomatic broadcast and high

pulling power.


The Pleasure sports flashy colors and a host of trendy

contours to appeal to adolescent girls.

Multi-reflector headlight; body-colored mirrors, multi-

reflector pointer nestled in the front and a new age oval-

shaped tool panel all make the Pleasure a head-turner.

The scooter is able of reach a top speed of 77kph.


Manufacturer Hero Honda

motorcycle Ltd Production 2001-present Price Rs. 35642 Engine

97.cc,7.5bhp@8000rpm,4stroke engine, singal cylinder


Manufacturer Hero Honda motorcycle Ltd

Production 2004-present

Price Rs, 49000

Engine 135 cc , fou r-stroke engine,

single piston, kick start

11 bhp

High Fuel efficiency




Price Rs. 33542

Engine 97 C C ,7.5 bhp @8500 rpm, 4 stroke

engine, torq u e of 8.05 Nm at 5,500




Price Rs. 51298-56022

Engine 149.1 CC, 4-stroke engine, single

cylinder.13.4 bhp @ 8000 rpm


HERO HONDA CD-DELUXE

“Naye Indian ki Nayi Deluxe Bike”

HERO HONDA SPLENDOR PLUS

“Designed To Excel”

HERO HONDA SPLENDOR NXG

“Bharosa Bhi Style Bhi”

HERO HONDA PASSION PLUS

“Whole New World Of Style”


HERO HONDA SUPER SPLENDOR

“Generation Nayi Bharosa Wohi”

HERO HONDA GLAMOUR

“Simply Magnetic”

HERO HONDA ACHIE V ER

“SOLID, Like You!”

HERO HONDA CBZ XTREME

“Live Of The Edge!”


HERO HONDA HUNK

“NO One Messes With It”

HERO HONDA KARIZMA

“Jet Set Go. . .”

HERO HONDA PLEASURE

“Karlo rock „n‟ roll on the run

Why should boys have all the fun?”

HERO HONDA CD-DAWN

“Public Ka Apna Transport”


BRAND AMBASSADORS


HERO HONDA KARIZMA

HRITHIK ROSHAN

HERO HONDA GLAMMOUR

YUVARAJ SINGH

HERO HONDA PASSION

HRITHIK ROSHAN

HERO HONDA PLEASURE

PRIYANKA C HOPRA



http://www.bajajauto.com/index.htm

Industry

Competitors

TVS

HONDA

BAJAJ

YAMAHA


Hero Honda

Brands

TVS Brands Bajaj Brands Honda

Brands

Yamaha Brands

Hero Honda

Karizma

TVS Apache

RTR 180

(150cc)

Bajaj Pulsar

DTSi

Unicorn

Stunner

Yamaha FZ16

Hero Honda

Splendour

TVS Centra

( 100cc)

Bajaj Platina Honda shine Gladiator

Hero Honda

Passion plus


Hero Honda

Glamour

TVS Flame

(125cc)

TVS Victor

( 125cc)

Bajaj

Discover

------

------

Hero Honda

Pleasure

TVS Scooty

pep+(97.8cc)

Scooty sterk,

Wave Activa, Dio,

Etreno

------


S strength

Ability to understand customer’s needs and wants

Recognized and established brand name

Effective advertising capability

They have big gap between cubic capacities of its products.

Weakness

Its market share is reducing from last few years.

Bikes are not attractive as compare to there competitors.


Strengths

Yamaha motors India is the subsidiary company of Yamaha motors ltd, which is the MNC company having a good brand name.

Good share in Indian two wheeler automobiles sector It is the one of the oldest company in the Indian market. Bikes are available at very cheap price. Popular in rural area.


Bikes are not attractive.

No presences in scooter segment.

No presences in above 150cc bike segment.

Decreasing market share

Limited network


STRENGTHS Reliable brand name

Affordable price

Honda have a big share of market in scootreats segment

Honda having high tech engines

HMSI (Honda Motorcycle and Scooter India Pvt.Ldt) is

the subsidiary company of Honda Motors Ltd. Which is

the largest company in the proposed sector


Less number of service center

Market share very less as compare to there competitor

Spares parts are not easily available

Low product range

Maintenance cost is very high


Strengths

Highly experienced management.

Product design and development capabilities.

Extensive R & D focus.

Widespread distribution network.

High performance products across all categories.

High export to domestic sales ratio.

Great financial support network (For financing the

automobile)

High economies of scale.



Weakness

Hasn't employed the excess cash for long.

Still has no established brand to match Hero Honda's

Splendor in commuter segment.

Not a global player in spite of huge volumes.

Not a globally recognizable brand (unlike the JV

partner Kawasaki




Comp

etitors

Strong Weak Close Distan

t

Good Bad Attack Avoid

Bajaj √ - √ - √ - √ -

TVS √ - √ - √ - √ -

Honda √ - - √ - - √ -

Yamaha - √

- √ - - - √


Hero Honda has released robust growth figure for the third quarter of the financial year. Total turnover (Net sales & Other Operating income) for Q3 stands at Rs2881.27 crore reflecting year on year growth of 4.77 per cent, while net profit after tax is Rs300.42 crore showing growth of 9.24 per cent.

Hero Honda, which holds 51 per cent market share in the domestic motorcycle market, has shown impressive growth figures for recessionary times. It has crossed the landmark retail sales of more than six lakh two-wheelers in a month in October.


Company Apr-Jun

2008-09

Market

Share (%)

Hero Honda 877,089 51.26

Bajaj Auto 391,100 15.53

TVS Motors 292,530 14.78

Honda 226,068 13.33

Total Market 1,865,767 - 10/18/2013 Babasabpatilfreepptmba.com 59

51.26%

15.53%

14.78%

13.33%

hero honda

bajaj

TVS

Honda

CHART SHOWING MARKET SHARE OF DIFFERENT COMPANIES


MARKETING MIX

PRODUCT PRICE PLACE PROMOTION

4P‟S OF HERO HONDA


PRODUCT

CD – Dawn, Splendor, Passion, Glamour, CBZ, Karizma etc.


Pricing Strategy Justification

Cost based pricing As Hero Honda is manufacturing concern it

involve many cost for different activities like

raw materials purchasing, manufacturing,

distribution etc,. so, to compensate all these

above cost the company is adopting cost based

pricing and it produces unit wise so they can

easily identify manufacturing cost for each

unit.

Value Based It takes care of its customers through Value

based competitive pricing and good service

after sales. The Company focuses on providing

"Value for Money" through its pricing strategies and

after sales services.


PLACE :

All over INDIA

Distribution channel –

Manufacturer Dealer Customer


PROMOTION:

T.V. Add.

News paper Add.

Magazine Add.

FM Radio

Hoardings etc.

Excellent marketing, finance and loan services, an

efficient dealer network, tactical promotion comprising of

fuel conservation campaigns, mobile workshops, safety

driving courses and others, all placed Hero Honda in a

league distinct from the conventional.


Factors High

/Medium/Low

Impact

Justification

Cultural

Factors

Medium

Impact

Determination of wants & behavior in the

customer market. India is exposed to values,

humanitarian, people loyalty. All these some

extent influences the customer to buy the

product. Ex: People believe that they should

buy some times festival seasons.


Social Factors

High Impact

There were many people who

bought bikes because of social

factors like on their parents,

friends and relatives opinion.

There were few people who

bought their bikes for style and

status. Besides this to my

surprise I found out that in

today‟s world boys play major

role in buying decisions for

themselves and for their family

also. This also played a greater

role in purchasing decision of

two wheelers by individuals.

Boys who were in age group of

18-25yrs were more interested

in features as compared to other

factors described. 10/18/2013 Babasabpatilfreepptmba.com 67

Personal

Factors

High

Impact

These factors were varying from

person to person. Demographic

Factors. Sex, Race, Age etc.

played major role in buying two

wheelers for individual use.

Young people in age group of

18-35yrs purchased two

wheelers for different various

reasons while older people in

age group of 35-50yrs purchased

just for travelling purpose only.


http://www.udel.edu/alex/chapt6.html

Psychologi

cal Factors

High Impact

There were many people

who wanted to purchase two

wheelers just because they

had sense of love and

belonging for bikes. This

was found more among Hero

Honda user. They are mostly

see performance of the bike

and services that provided

by companies and want their

bike to be smooth while

driving the bike.





Need Recognition

Information Search

formation Search

Evaluation of Alternatives

Purchase Decision

Post Purchase behaviPost Purchase behavior

or 10/18/2013 Babasabpatilfreepptmba.com 71

The basic need of a vehicle is for transportation. Hero Honda Pleasure, it mainly degised for young girls & working or non-working women. They need this vehicle for transportation purpose. So, this is the need recognition for buying decision process.


Surprisingly, customers search for information. The major information sources to which customers will turn fall into four groups-

Personal - family, friends, neighbors.

Commercial - advertisements, web sites, salesperson, dealers, displays.

Public - mass media, consumer-rating organizations.

Experimental - handling, examining, using product

Information


The customers search for alternative competitive brand information search. For example, the alternative search for Hero Honda Pleasure is its competitive brands like Honda Activa, TVS Pep+, Bajaj Wave. These are alternative search for this product.


In the evaluation stage, the consumer forms preferences among the brands in the choice set. The customer may also form an intention to buy the most preferred brand. In executing a purchase intention, the consumer may make up to five sub decisions: brand, dealer, quantity, timing and finally payment method. After all these the customer will go for purchasing the product (Hero Honda Pleasure).


After the purchase, the customer might experience positive about the product or negative. Post purchase satisfaction is a function and the product’s perceived performance. The performance falls short of expectations, the consumer is disappointed; if it meet expectations, the consumer is satisfied. After satisfying with the product the customer may go for influence to buy the same brand.


After studying about the Hero Honda’s company, we came to know about the companies SWOT, different brands and there features, market share, promotion activities, brand ambassadors, 4P’s of marketing, customers buying behavior and many more. Apart from this in this project we also came to know about the different competitors and their Strengths and Weakness. So, finally we conclude that the two wheeler industry is growing very fast in India and the different companies are coming with new different marketing strategies to sustain their brand in the market.


Thank you!


Business

How to theory apply in to practical of marketing management to hero honda company