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MARKET SURVEY OF HERO HONDAAND THEIR MARKETING
PROCESS
PRESENTED BY : JAYANTA KUNDU
SWASTIK BASUSAYAN CHATTERJEE
PARTHA PRATIM GHOSH
ARNAB BISHNU
PINAKI GHOSH
AJAY CHOWDHURY
A PROJECT ONA PROJECT ON
EASTERN INSTITUTE FOR INTEGRATED LEARNING IN MANAGEMENT
6, WATERLOO STREET, KOLKATA 700069
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INTRODUCTIONINTRODUCTION
Joint Venture between Indias Hero Honda Group and Japans Honda Motors
Company.
Most successful joint ventures worldwide.
Over 20 million Hero Honda two wheelers tread on Indian roads today.
Three Globally benchmarked manufacturing facilities Dharuhera and
Gurgaon in Haryana and Haridwar at Uttarakhand.
Capable of Producing out 4.4 million units per year.
3000 customer touch point.
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COMPANY PROFILECOMPANY PROFILE
Company of Japan and the Hero Group entered a joint venture to setup Hero
Honda Motors Limited in 1983.
The Company was Incorporated on 19th January, at New Delhi. The Company
Manufacture motor cycles upto 100 cc capacity .Company was promoted by Hero
Cycles (P)Ltd.(HCPL).
Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and
the $ 2.8 billion Hero Group.
Twenty five years and 25 million two wheelers later, Hero Honda is closer to fulfillingthis dream. This vision is the driving force behind everything that we do at Hero
Honda.
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MARKET SHAREMARKET SHARE
48%
32%
11%
6% 3%
Hero Honda
Bajaj
TVS
Yamaha
Honda
Financial Results for FY10Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent
Total turnover (Net sales and other operating income) of Rs. 15860.51 Crores, growth
of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent
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MISSIONMISSION
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.
VISIONVISIONThe 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
Hondas commitment to customer, quality and excellence, and while doing
so, maintains the highest standards of ethics and societal responsibilities.
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COMPANY OBJECTIVESCOMPANY OBJECTIVES
To make maximum market share in India.
Being in business is to make money.
Speed up and automate supplier order processing.
Synchronize customer ordrs with supplier schedules.
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PRINCIPLES OF HERO GROUPPRINCIPLES OF HERO GROUP
Understanding stakeholders (includind International
partners and customers) expectations and delivering
value for money.
Managing relationships
Creating a Performance culture
Partnership Approach with ancillaries
Efficient Current Asset Management Accepting and using ever changing technology as a
facilitator
Strong quality and process orientation
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AWARDSAWARDS
National safety awards for the year 2001
National productivity awards for the year 2001
Best slogan awards for the year 2002 ICSI National awards for the year 2004
ICWAI National awards for the year 2005
Corporate social responsibility awards for theyear 2006
Bike Indian awards for the year 2007
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SWOT ANALYSISSWOT ANALYSIS Strengths
Ability to understand customers needs and wants
Recognized and established brand name
Effective advertising capability
Weaknesses
R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company
has so much power
Opportunities
Global expansion into the Caribbean and Central America
Expansion of target market (include women) Become Indias leader in the scooter market
Threats
Honda Motorcycles and Scooters India can take away market share andcause joint venture to go sour
Bajaj Motors is a strong competitor
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RESEARCH METHODOLOGYRESEARCH METHODOLOGY
Data Source
Primary Data : The primary data for the study was collected by personally
administering the questionnaire to respondent and observation.
SECONDARY DATA: The secondary data for the study was collected for otherinformation from books, internet and Hero Honda Magazines.
Sampling Technique : Personal approach with
questionnaire.Sample size: 100
Analyzing and Interpretation of Data.
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PROFESSION SEGMENTATIONPROFESSION SEGMENTATION
68%
20%
12%
OCCUPATION OFRESPONDENTS
STUDENTS
SELFEMPLOYED
EMPLOYED
OCUPATION NUMBER %
STUDENT 68 68%
SELF EMPLOYED 20 20%
EMPLOYED 12 12%
Among the 100 people surveyed ,68% were students,20% were self-employed
and remaining 12% belonged to working class like office goers, clerks etc.
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INCOME SEGMENTATIONINCOME SEGMENTATION
30%
55%
10%5%
MONTHLY INCOME
40
MONTHLY
INCOME(IN
000S)RS
NUMBER OF
RESPONDENT
S%
40 5 5%
30% of the total respondents earn less than Rs. 20,000 per month, 55% of the
respondents earn Rs. 20,000-30,000 per month, 10% of the respondents earn Rs 30,000-
40,000 per month and 5% of respondents earn more than Rs. 40,000 per month.
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OWNERSHIP SEGMENTATIONOWNERSHIP SEGMENTATION
80%
20%
DO YOU OWN A TWO WHEELER?
YES
NO
RESULT NUMBER %
YES 80 80%
NO 20 20%
80% of the respondents own a two wheeler and 20 % of them do not have
one.
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MOST VIEWED ADSMOST VIEWED ADS
0
5
10
15
20
25
0
5
Hero Honda Bajaj Tvs Yamaha Honda
Hero Honda 31
Bajaj 27
TVS 13
Yamaha 22
Honda 7
The viewership rate of ads among respondents is highest for Hero Honda with 31%,
and then comes Bajaj with 27%, then Yamaha with 22%, TVS with 13% & Honda with
7%.
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MOST COMMON SOURCE OF ADS
28%
60%
5%7% TV
NEWSPAPER/MAGAZINES
BILLBOARDS
INTERNET
TV 28%
NEWSPAPER/MAGAZINES 60%
BILLBOARDS 5%
INTERNET 7%
Among the common source of ads, newspaper and magazines are marked by 70%
of respondents, TV by 18%, Internet by 7% and Billboards by 5%.
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FACTORS WHICH MOTIVATE PURCHASINGFACTORS WHICH MOTIVATE PURCHASING
DECISIONDECISION
0
5
10
15
20
25
30
35
40
45
DISCOUNTRATE
EMI RESALEVALUE
ALLOWANCES OTHERS
30
45
12
8
3
DISCOUNT RATE 30%
EMI 45%
RESALE VALUE 12%
ALLOWANCES 8%
OTHERS 3%
EMI is one of the major motivating factor with 45% liking it,then comes discount rate
30%,resale value 12%,allowances 8%,and others 3%.
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PREFERRED PRICE RANGE (PREFERRED PRICE RANGE (ININ 000000SS))
5%
22%
15%
36%
17%
5%
30 - 40 40 - 50 50 - 60 60 - 70 70 - 80 > 80 30-40 5%
40-50 22%
50-60 15%
60-70 36%
70-80 17%
>80 5%
The most preferred price range is 60-70 with 36% going for this option. 22% for
40-50, 17% for 70-80, 15%for 50-60, 5% each for 30-40 or for more than Rs.80,000.
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RATING FOR VARIOUS FACTORSRATING FOR VARIOUS FACTORS
(1 LEAST PREFERRED AND 7 MOST PREFERRED)(1 LEAST PREFERRED AND 7 MOST PREFERRED)
0
10
20
30
40
50
60
70
80
90
100
4
22 10
52
1
5
22
210
3
1
16
4
78
10
8
1
60
5
2
2
60
70
1
18
10
5
2
3 10
1
7
70
10
2
6 4
90
5 5
75
46 3
5
7
6
54
3
2
1
the most preferred factor is performance with 75% going for it. Then comes service and
support and fuel efficiency with 90% and 70% in terms of preferences. This is followed by
price and brand value of the bike.
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FINDINGSFINDINGS
The major findings during the data collection and analysis time can be summed upas follows:
Interest rates are one of the prime reasons for the sharp fall in demand.
Difficulty in availing loans, rising defaults, tightening of loan recovery laws andvarious other factors.
Increasing oil prices have deterred many lower middle class families from buying
two wheelers.
Introduction of low priced cars will directly affect the market.
With the introduction of the Bharat-4 norms, it will be more challenging to meet
these stringent norms whilst simultaneously offering competitive prices.
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