A PROJET REPORT

ON

³HERO HONDA MARKETING STRATERGY´
IN CONTEXT WITH ´HERO HONDAµ DURG (C.G)
Submitted in the partial fulfillment for the award of degree of

BACHELOR OF BUSSINESS AMINISTRATION
Of Pt.Ravishankar Shukla University, Raipur (C.G) Session 2007-2010

Submitted by ABHISHEK KUMAR

DEPARTMENT OF MANAGEMENT SHRI SHANKARACHARYA MAHAVIDYALAYA SECTOR-6 BHILAI (C.G)

Certificate
To whom may ever it may concern

This is to certify that abhishek kumar student of B.B.A 6th sem of shri shankaracharya mahavidyalaya , bhiai has carried a research project on the topic to hero Honda under my supervision . This report is original and data collected by the researchers him self are true authentic up to my knowledge. We wish abhishek success in his professional career .

Declaration
I abhishek kumar student of sixth semester at ¶ shri shankaracharya mahavidyalaya ¶ here by declare that these research report under the title is the record of my original work under the guidance of Mr. Sandeep Jaswant (H.O.D ) B.B.A . These report has never been submitted any where for award of any degree or diploma. Place: Date:
Department of BBA Shri shankaracharya mahavidyalaya sector-6 bhilai (CG)

Certificate
This is to certify that abhishek kumar a student of B.B.A sixth semester at our institute under my guidance and supervision he had carried out the research project under title ´ marketing strategy of hero Honda´ This research report is the original one. Place: Date :
Project guide (lecturer) Department of B.B.A SSM Bhilai

Acknowledgement
Perhaps the most awaited moment of any endeavor in its successful competition of their project report cases study having worked on her project for the whole academic session. I would like to express my sincere gratitude to all those who made it possible. Firstly I am humbly and respectfully to my guide Mr. Sandeep Jaswant (H.O.D) of the B.B.A department under whose able guidance. I had the privilege to work and who guided at every stage. I take this opportunity to express my sincere gratitude to our principle for being guide of philosopher throughout B.B.A program. I shall be failing in my duty if I don·t express my deep sense of gratitude to all my friends and the relatives who have share their valuable time and helped me directly or indirectly in the preparation of their project . At the end last but not the least, I would like to thanks the other staff and non staff member the of this college.

(B.B.A sixth semester)

Preface The topic chosen by me for my project is marketing strategy ´In reference to hero Honda automobiles the two wheeler especially in the stylish motorcycle. A normal customer is quit puzzled and faces for an uneven some time huge problems in deciding which vehicle to buy. while buying a two wheeler .today two wheeler consumer due to new manufacturing entrant has started getting a wide choice while buying one these gave to considered the facility provided by the two wheeler the price mileage . Today there are various companies coming in Indian and these certainly will exist a cutthroat competition in these field . maintenance and service etc. At present hero Honda is market leader in the Indian market. I realized the problem and decide to take these up as the challenge and provide answer to as the requirement of the Hero Honda. I have chosen a hero Honda as a topic essence of my project . .

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Chapter .1 .

if marketers raise expectations two high . ] Buyer·s expectation formed on the basis of past buying experience.Introduction Satisfaction is the persons feeling of pleasure (or) disappointment resulting from comparing a product perceived performance (outcome) in relation to his/her expectation. if the performance fall short of expectation the customer is dissatisfied . §} A customer is the person who bring company his Wants. Even if the company sets expectation should match the performances. friend and the associate advice and the marketers and the competitor·s information and promises. . §} A customer is not a interruption of marketers Work he is the purpose of it. but the company depends on him. the buyer is likely to be disappointed . §} A customer is the most important person even in any company §} A customer never depend on company. if the performance matches the exception the customer is satisfied if the performance exceeds the expectation the customer is highly satisfied ( or ) delighted many companies are aiming for high satisfaction because they are much ready to switch.

After 60 decade some other motorcycles and scooter had been launched in Indian two wheeler market those are the Rajdoots. Java. BBA and Royal Enfield. AIS. From these motor cycles only the Royal Enfield has existence in the motorcycle market. . Vespa and Lamrata .Two wheelers in India In 60 decade several vehicles were running in the Indian roads those are the sun beams. Indian witrossed the first spate of modernization in two wheeler industry in 1978-79 during that period Piaggio sauntered the Indian market in a joint venture with the Lohia machines and our major Japanese motor cycle manufacture set up joint venture companies to produce 50cc two wheeler for the first time.

§} to find out the customer opinion regarding Various aspect of the bike. §} To give the appropriate suggestion to the company regarding he performances. .Objectives of the study §} To know the customers expectations towards hero Honda.

 In doing so.  Indeed. our brand identity is shaped as much by their belief in hero Honda as the as it it·s our brand.Our brand Our brand identity:  Our brand is the visual expression of the ought and the action it conveys to everyone our intention two constantly inspire the confidence.  Our customers are the primary audience for our brand.  We can do this by the living on the brand essence and by continuously seeking to enhance our customer experience. . we ensure a special pace for our self in the heart and in the mind of the customer.

 By challenging the given . by exploring the unknown and thereby stretching ourself towards tomorrow.Our brand essence  Our brand essence is thje soul of our brand  Our brand essence encapsulates or mission at Herohonda  It is the singular representation of our terms of endearment with our customers. .  It provies the basis on which we grow profitability in the market.  Blending together youthfull creativity and competitive technology to exceed the spoken and the implict expectations of our customers.  Our brand essence is excitement  Hero Honda strives to inspire the confidence through te excitement engineering. today.

 It is the value that keeps us sharpley responsive . Speed  It is how we convey clear convection. Innovation  It is how we can create the future  It is that which provokes us to reach beyond the abivous in persuite of that which exceeds the ordinary. mirroring our commitment towards our goal and process. .Learning  Learning is how we insure our proactively  It is the values that embraces knowledges as the plat form for the building well informed.

Chapter -2 .

made the business easier for local player to have a seller market . Royal Enfield. ideal Jawa and Escorts. The CEO of Bajaj commented that he did not make a marketing department. before the economic liberalization .History India has the largest number of two wheeler in the world with41. India was the second largest two wheeler manufacture in the world starring in 1950·s with the British automobiles product of India (API) that manufactured the scooter. only in dispatch department. Bajaj has a waiting list that has twenty six times of annual output for scooter. Royal Enfield made a 350cc bullet wit the only four ² stroke engine at that time and took the higher end of the higher end of the market but . Surpassed API and remaining through the turn of the century from its association with piaggio of Italy (Manufacturer of Vespa) The license raj that exist between the 1940s to 1980s in India . India has a mix of 30 percent automobile and 70 % two wheeler in the country.6 million vehicles. Ideal Jawa and escorts took the middle and lower end of the market respectively. did not allow the foreign companies to enter the market and import were tightly controlled . there was little competition for there costumer . Customer in India was forced to wait 2 years to buy a scooter from Bajaj. By the year 1990. another company Bajaj automobiles LTD. The motorcycle segment has the same long wait time with three manufacture.these regulatory maze . . API manufacture the lamberts but.

in 1984 for the manufacturing of 100cc motor cycles in India. The entry of these foreign companies changed the Indian market dynamics from the supply side to demand side with a large selection of two wheelers on Indian market customer started gain over the product they bought and raise the higher customer expectation. The two wheeler market with for indo Japanese joint venture: Hero Honda TVS S Suzuki.In the mid-1980s the Indian government regulation changed and permitted companies to enter the Indian through minority joint venture. .  Hero entered the joint venture for technical and financial participation with one of the largest automotive makers  Honda motors company limited of Japan. Bajaj Kawasaki and kinetic Honda.  Group companies Hero corporate service limited ² Hero mind mine ²munlal In 1984-1985 HHML came in existence by collaboration of hero motor limited and Japans Company Honda motors limited for the first 100cc with four stroke motorcycle is made by Hero Honda motor limited in India.

the two wheeler manufacturing business of bicycle component had originally started in the 1940·s and turned in the world largest bicycle manufacture today. . ´ to provide excellent transportation to the common man at easily available and affordable and to provide the total satisfaction in all its sphere of activity ´ he hero group has a passion for setting the higher standard and engineering satisfaction is the prime motivation way of life and work culture of the group . In year 1984 Mr. at hero Honda . headed an alliance between the Munjal family and Hero Honda company LTD HHM mission statement is : µ we. the Hero group philosophy is. the chair man and managing director of hero Honda motors . are continuously striving for synergy between technology . The Munjal run their own steel make free wheel and other critical bicycle component and and have diversified in to different like product design. system and human resources to provide product and services that meet the quality price and aspirations of the customerµ.Company profile Hero is the brand name used by the Munjal brother in the year 1956 with the flag ship company hero cycle·s . Brijmohan lal munjal .

EXE (SELF/DISK) PRICE 32900 36650 36740 39550 41250 43750 44150 44900 46250 48250 57500 57000 73900 35400 RTO 1699 1850 1850 2050 2099 2105 2199 2399 2250 2350 2750 2725 3400 1800 INS 845 918 912 999 999 1005 1024 1109 1055 1086 1218 1216 1446 899 TOTAL 35444 39467 39502 42599 42599 46905 47373 48408 49555 51686 61468 60941 78746 38098 HUNK KARIZMA CD-DELUXE(RING) .SPL.NXG SPL.SPL(MAC) GLR.(RING) SUP.(DISK/SELF CBZ.(MAC/SELF) GLR.PLUS PASION PLUS SUP.Product profile Price list Model CD-Dawn CD-DLX(MAC) PLEASURE SPL.

Tahitian blue. excellent blue metallic. Tahitian blue metallic. PLEASURE Orange .Colors in Vehicle GLAMOUR Candy blazing red.maroon. metallic. cloud silver . CD DAWN Black . amaranth maroon. red CD 100SS Candy ruby red black . sky blue black metallic. Candy blazing red.amaranth maroon. boon silver. amazing blue metallic. cool mint grey. SPLEDOUR black candy red . granti blue metallic. grey silver. cloud silver metallic. cloud silver. blaze . PASSION PLUS Moon yellow. tornado metallic grey. yellow shade.green metallic. impulse orange metallic.black with purple strips. sierra metallic. Candy blazing red. KARIZMA Green . CD DELUXE Candy blazing red. . candy Tahitian blue.

2008: Hero Honda Motors Ltd (HHML).20 per cent. today firmly reiterated its undisputed leadership in the domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2) ² July to September .4 per cent in September. the world's largest two-wheeler company for seven consecutive years.6 per cent over Rs 2361 crore recorded in the corresponding period last fiscal. a growth of 35. . the company kicked off the second quarter with a 39. and followed up with 26. Total turnover (Net sales & Other Operating income) grew to Rs 3202 crore.33 crore. Hero Honda's profit after tax in the corresponding period last fiscal (July . the company reported 50 per cent growth in profit after tax (PAT) at Rs 306.of this financial year (FY) 2008-09.38 per cent in the first quarter. After posting a growth 11. The EBIDTA margin in the previous quarter (April .8 per cent growth in sales in the month of July.8 per cent growth in August and 22. The strong financial performance is in line with the company's betterthan-industry top line growth. and currently enjoys over 55 per cent share.June '08) was 12. Even as the industry continued to face tough market conditions on account of uncertainty over interest rates and overall credit squeeze.58 per cent in the quarter. 2007-08) stood at Rs 204.Sept.Hero Honda·s Marketing Strategies in India New Delhi. October 21. Hero Honda consistently keeps growing its share in the domestic motorcycle market.30 crore for the second quarter. The company has recorded an EBIDTA margin of 13.

and in our communication. Even in this volatile and competitive environment. I wish to thank all our stakeholders ² customers. in our network expansion. Brij Mohan Lall. and other factors such as inflation. our top line continues to outpace the industry growth." "Going forward. Hero Honda Motors Ltd. It gives immense joy to see this kind of results in the 25th year of our company." Mr. We will continue to keep innovating ² in bringing in technologically-superior products. ancillaries and also our joint venture partners Honda Motors Co ² for their continuous support. and the financial balance sheet is a delight ² all the factors which form the hallmark of a resilient company with cutting-edge management. Hero Honda Motors Ltd. These factors will play a crucial role in the industry growth in the subsequent quarters. MD & CEO. our market share is at an all time high.Dr. . interest rate scenario and availability of retail finance. said "Our numbers speak for themselves. Said "We are happy with our financial performance. in brand building. in our financial management. we will have to keep a close watch on the commodity prices movement." he added. associates. dealer friends. Chairman. Pawan Munjal.

Pawan Munjal. supporting them with innovative communication across media. We will continue to focus on our customers and they can surely look forward to many more launches and various initiatives in the coming year. Despite the industry slowdown. HERO HONDA OVERTAKES PREVIOUS FISCAL·S SALES TALLY.µ HHML·s good run through the industry slump in 2007 has been possible due to the company·s multi-focal strategy of bringing in new models and variants across segments. leveraging properties such as cricket and entertainment for brand building and augmenting its distribution network (HERO HONDA CONSOLIDATES MARKET LEADERSHIP WITH IMPRESSIVE GROWTH OF 15% IN MARCH·09 FOR FY 2008-09. we have been able to manage positive growth thereby taking our share in the domestic motorcycle market upward of 52 per cent. Managing Director. At the end of the financial year. I would definitely like to thank our millions of customers across the country.Mr. Hero Honda Motors Ltd . EVEN AS DOMESTIC MOTORCYCLE INDUSTRY DECLINES BY MORE THAN 10 %) . ´The year 2007-08 has seen a leadership performance from us. who have made it possible.

Tuesday. investing in brand building.516 units during the month Mr. Splendor + and Passion Plus in deluxe segment.000 units being sold in August this year. . Anil Dua. the industry continues to face uncertainty on account of high interest rates and overall credit squeeze. Hero Honda Motors Ltd. 2009: Reports robust sales of 305. However. CBZ X-treme and Karizma in the premium segment. Glamour. The festival month of October is going to be crucial in determining the overall outlook of the industry for the year. The strategy hinges on creating winning brands across segments. with more than 12. and Hunk.µ Key Hero Honda brands continue to drive strong volumes across segments CD Deluxe in entry segment.HERO HONDA CONTINUES TO CONSOLIDATE MARKET LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES New Delhi. Sr. April 21. ´Our strategy is yielding results. the new Splendor NXG. Hero Honda·s scooter Pleasure has also been growing strongly. exploring untapped markets in rural and upcountry areas while consolidating urban presence and rapidly expanding our network. Vice President (Marketing & Sales).

April 21. brand building initiatives backed by innovative communication has resulted in market share gain across every segment.022 units) ‡ Crossed half a million retail sales in the festive season ‡ Closed calendar year 2007 with sales of over 33 lakh two-wheelers Mr.µ he added. Managing Director & CEO. Hero Honda·s share in domestic motorcycles market has been growing upward of 50 per cent. Hero Honda's strategy for aggressive top line growth through new product launches. Pawan Munjal. and its results are now visible. including a conscious effort to rationalize costs across the board. ´Given the industry slowdown scenario. Tuesday. despite the slowdown in the two-wheeler industry. we should be able to further improve upon our financial results. . However. Our bottom line has seen a consistent improvement. We had undertaken some strategic initiatives since the beginning of this fiscal. and we have been able to demonstrate that it is possible to keep gaining market share while maintaining a robust bottom line.New Delhi. ´With input costs softening and our sharp focus on cost efficiencies. 2009: Highlights Corporate performance: ‡ Consolidated over 50% share in the domestic motorcycle market ‡ Reported highest ever sales in a month in October 2007 (365. we are very enthused by our robust financial numbers for the third quarter. Hero Honda Motors Ltd. this was not unexpected. said. Indeed.

No doubt. one is to redesign the bike and second is to reposition the bike as ³Bike with one time investment´. two options are available with the client. Since redesigning of bike may involve a big task and huge investment therefore we recommended repositioning the bike. . However its performance vis-à-vis industry indicates that the performance of Hero Honda was better than the industry peers. in order to meet the sales target. The gap between motorcycles sold by Hero Honda and its closest rival is approximately 1 m units (23% of industry size). mostly officials & executives The client analysis from our questionnaire it was found that our client has targeted the right segment HHML & TVS is overlooking one feature in bike which is its low maintenance cost and reliability (i. it has achieved a CAGR of 30% in two-wheeler volumes against 11% of the industry. TARGETING & POSITIONING From the current segmentation. that the shift in preference of Indian populace from scooters and mopeds towards motorcycles has facilitated the growth of Hero Honda. barring two years.SEGMENTATION. In the seven-year period ending FY04. Therefore. One of the reasons for the tremendous performance of Hero Honda is the significant increase of share of motorcycles in the two-wheeler segment. from 42% in FY99 to 77% in FY04.e. targeting & positioning and consumer surveys we found that our client has targeted the following segments: j Congested areas of urban cities. j Males/Females between the age group of 18-36 j Middle class people . less chances of breakdown) which is absent in its competitors.

We seek to walk & march with both India and Bharatµ .exist today.Segmentation Positioning Targeting Key factor of marketing strategy ´India and Bharat co. Bharat is made up of villages entering the economic main stream. India comprises of fast growing cities and town.

. It should be noted that the company has a strong cash flow position.Strong Fundamentals The company has clarified about its intention of setting a third plant in addition to its existing two plants. it generated Rs 9 bn from operation in FY04 and is virtually a debt free company. The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same.

muffler with heat shield etc.5PS) @ 8000 rpm .7 kw). makes it more market friendly bike. there are few features included here are trip meter. For the convenience of the biker. Its double cradle frame gives the steadiness in biking. OHC engine delivers power of 5. This is achieved by powerful battery which powers the DC high beam in the headlamp and its strength is not dependent on the engine rpm. Some safety features included here are pass switch and push cancel indicator switch. low noise and less vibration engine etc. this bike is giving the optimum satisfaction for long journey.5 Kw (7. It features trapezoidal multi -reflector headlamps which is powerful even at low speeds. Running with the maximum mileage of 85 kmph. Splendor + 4 stroke single cylinder lair-cooled. . large utility box etc. peep hole. Its relaxing seating arrangement with other comfort features like less strain while clutching and declutching.EXAMPLES Super Splendor This Bike comes with 125 cc new generation quantum core engine with an output of 9 bhp (6. Splendor NXG Splendor NXG comes with a new engine and pioneering features and combines stylish looks with a high performance engine. Its wider 1230 mm wheelbase provides the proper base for safer riding. Circuitry for the low beam and pilot lamp has also been enhanced for low variation in intensity arising from changes in the engine rpm. Lighting fitting included in it like multi reflector with halogen bulb makes the biking secured at every time.

generation. religion. countries. occupation. One reason demographic variables are so popular with marketers in that they¶re often associated with consumer needs and wants. or neighborhoods. family size. nationality and social class. family life cycle. by personality type). . Demographic Segmentation In Demographic Segmentation. regions. geographic segmentation assumes importance due to variations in consumer preferences and purchase habits across different regions. cities. race. income. across different countries. we may need the link back to demographic characteristics in order to estimate the size of the market and the media we should use to reach it efficiently. education. states. and across different states in these countries. In the South Asian context. Even when we describe the target market in non-demographic terms (say.Segmentation of Hero Honda Splendor: - Geographical Segmentation Geographic Segmentation calls for division of the market into different geographical units such as nations. we divide the market into groups on the basis of variables such as age. Another is that they¶re easy to measure.

In psychographic segmentation. Religion has a significant influence on values and lifestyles. buyers are divided into different groups on the basis of psychological/personality traits. The strict norms that consumers follow with respect to food. People within the same demographic group can exhibit very different psychographic profiles. Values and lifestyles significantly affect product and brand choice of consumers. or values. lifestyle. habits or even dress codes are representative examples in this regard. .Psychographic Segmentation Psychographics is the science of using psychology and demographics to better understand consumers.

The four groups with higher resources are: 1. 3. Thinkers. ³take. self-sufficient people who like to work with the hands. Makers.successful. Strivers.successful. Experiences. active.Young. Purchases often reflect cultivated tastes for relatively upscale.Elderly. Believers. They spend a comparatively high proportion of income on fashion. Innovators: .trendy and fun-loving people who are resource constrained. satisfied. functionality. conventional. down-to-earth. They favor stylish products that emulate the purchases of those with greater material wealth. and traditional people with concrete beliefs. They seek products with a practical or functional purpose. enthusiastic. . niche-oriented products and services. 4. sophisticated.mature. They seed durability. The four groups with lower resources are: 1. 2. Achievers. entertainment and socializing. and reflective people who are motivated by ideals and who value order. 2.Practical. impulsive people who seek variety and they favor premium products that demonstrate success to their peers excitement. passive people who are concerned about change. They prefer familiar products and are loyal to established brands. 4. They are loyal to their favorite brands. knowledge and responsibility.conservative. 3.charge´ people with high self-esteem. Survivors. and value in products. goal-oriented people who focus on career and family.

Decision Roles: People play five roles in a buying decision: Initiator. Decider. This is especially useful for designing the communication strategy. usage rate. Buyer and User.Behavior Segmentation: In behavioral segmentation. Behavioral Variables: Many marketers believe behavioral variables-occasions. benefits. attitude toward. or response to a product. marketers divide buyers into groups on the basis of their knowledge of. loyalty status. Influencer. use of. user status. buyer readiness stage. . Recognition of the different buying roles and specification of the people who play these roles for specific products and services are vital for marketers. and attitude-are the best starting points for constructing market segments.

for an automobile manufacture to develop cars for people who are less four feet tall. A segment should be the largest possible homogenous group worth going after with a tailored marketing program.Market Targeting: - Effective Segmentation Criteria To be useful. If married and unmarried women respond similarly to a sale on perfume. they do not constitute separate segments.  Substantial. for example.  Differentiable. The segments can be effectively reached and served. market segments must rate favorably on five key criteria:  Measurable. . purchasing power and characteristics of the segments can be measured. The segments are large and profitable enough to serve. It would not pay. The segments are conceptually distinguishable and respond differently to different marketing-mix elements and programs.  Accessible. the size.

Segment Concentration M1 M2 M3 P1 P2 P3 Selective Specialization M1 M2 M3 P1 P2 P3 Product Specialization M1 M2 M3 P1 P2 P3 Market Specialization . Actionable. Effective programs can be formulated for attracting and serving the segments. Evaluating and Selecting the Market Segments Single.

neonatal care and gynecology. primarily targeted at agricultural markets. Through concentrated marketing. the firm enjoys operating economies through .M1 P1 M2 M3 P2 P3 Full Market Coverage M1 M2 M3 P1 P2 P3 Single Segment Concentration:The farm equipment division of Mahindra & Mahindra concentrates on tractors. The Zodiac brand concentrates on formal shirts for executives and professionals. Furthermore. the firm gains a strong knowledge of the segment¶s needs and achieves a strong market presence. heart specialty. Especially hospitals focus on specific therapeutic areas such as cancer care.

If it captures segment leadership. and commercial laboratories. but each promises to be moneymaker. The downside risk is that the customer group may suffer budget cuts or shrink in size. Selective specialization: .A firm selects a number of segments.specializing its production. a firm can sell an assortment of products only to university laboratories. . for instance. Product specialization: . For instance. Hero Honda used Product Specialization for target market of Hero Honda Splendor. The firm gains a strong reputation in serving this customer group and becomes a channel for additional products the customer group can use. sells to university.The firm concentrates on serving many needs of a particular customer group. the firm can earn a high return on its investment. The firm makes different microscopes for the different customer groups and builds a strong reputation in the specific product area. This multi segment strategy has the advantage of diversifying the firm¶s risk. distribution and promotion. government. When Procter & Gamble launched crest White strips.The firm makes a certain product that it sells to several different market segments. The downside risk is that the product may be supplanted by an entirely new technology. Market specialization: . initial target segments included newly engaged women and brides to be as well as gay males. A microscope manufacturer. There may be little or no synergy among the segments. each objectively attractive and appropriate.

passenger transport. Segment-bysegment invasion plans are illustrated three firms. Competitors must not know to what segment(s) the firm will move into next. B. Such as Microsoft (software market). Company A meets all the computer needs of airlines. Ethical choice of market targets: marketers must target segments carefully to avoid consumer backlash. Only very large firms. and goods transport companies. General motors¶ (vehicle market). Additional considerations Two other considerations in evaluating and selection segments are segmentby-segment invasion plans and ethical choice of market targets. and C.The firm attempts to serve all customer groups with all the products they might need. Singles may reject single. A. Some consumers may resist being labeled. and coca-cola (nonalcoholic beverage market). have specialized in adapting computer systems to the needs of airlines.Full market coverage: . Serve food packaging because they don¶t want to be reminded they are eating . Segment-by-segment invasion plans: A company would be wise to enter on segment at a time.

the goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. and how it does so in a unique way. A good brand positioning helps guide marketing strategy by clarifying the brand· essence. Competitive Frame of Reference A starting point in defining a competitive frame of reference for a brand positioning is to determine category membership-the products or sets of products with which a brand competes and which function as close substitutes.stand the brand positioning and use it as context for making decisions.alone. Elderly consumers who don¶t feed their age may not appreciate products that identify them as ³old´ market targeting also can generate public controversy. Positioning: Positioning is the act of designing the company·s offering and image to occupy a distinctive place in the minds of the target market. capabilities and likely intension of . what goals it helps the consumer achieves. Everyone in the organization should under. Competitive analysis will consider a whole host of factors-including the resources.

various other firms-in choosing those markets where consumers can be profitably served. 3. Wheels. 4. Expected Product: The expected products of Hero Honda splendor are: 1. Product:- Core Product: The core product or benefit of Hero Honda Splendor is Travelling and saving the time by reach on desire place at right time. It should be disk brake or power brake. 5. . It provides monthly check up for decrease the pollution. It should be 120 Km/hour Maximum speeds. 2.] Basic Product: The basic product of Hero Honda splendor are Engine. Augmented Product: The augmented products of Hero Honda Splendor are: 1. It should be 90 Km/l mileages. Shockers. Gear box and chain set etc. Handle. 6. It should be 5 gear boxes. It should be steel body.

other marketing strategies and pricing approaches are implemented. Once this is achieved. This approach was used by France Telecom and Sky TV. Hero Honda Used penetration pricing strategy because that time Hero Honda use National Segment and low income persons so they used penetration strategy. . It provides fast service of the product. Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost.2. and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. Pricing Strategy: - Penetration Pricing: - The price charged for products and services is set artificially low in order to gain market share. Price Skimming: - Charge a high price because you have a substantial competitive advantage. The high price tends to attract new competitors into the market. the advantage is not sustainable. the price is increased. However.

print advertising and internet banner ads. Those consumer items where the customer will rely on immediate information than previously researched items. outdoor. penetration pricing. Above The Line Promotion: - Above the line (ATL) is an advertising technique using mass media to promote brands.Premium pricing. The ATL strategy makes use of current traditional media: television. They form the bases for the exercise. newspapers. This type of communication is conventional in nature and is considered impersonal to customers. . economy pricing. and price skimming are the four main pricing policies/strategies. Major above-the-line techniques include TV and radio advertising. radio. and internet. magazines. However there are other important approaches to pricing. Promotion: - Below the Line Promotion: - µBelow The Line is a common technique used for touches and feel products. Below The Line techniques ensure recall of the brand while at the same time highlighting the features of the product.

Local 2. Newspaper and Other media communications..Geographical placing of the product has divided into 4 markets and these are: 1. Regional 4. National 3. Place: Geographical Placing: . International Hero Honda used National Market for sale the Hero Honda Splendor. members used advertisement through Radio.Hero Honda used Above the Line Promotion because in the Above the Line promotion co.V. T. .

Considering all facts of marketing in a unique way for proper and efficient definition of marketing. Marketing threats .

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. a quick return to robust growth is unlikely. and this could affect Hero Honda's near term plans for an increased presence in this segment.MANAGING RISK IS HALF THE BATTLE WON RISKS AND CONCERNS ‡ Slowdown: Sales in the lucrative premium two wheeler segment (150 cc and above) have been affected by the economic slowdown.

inflation growth was close to zero per cent by year-end. However. ‡ Inflation: After climbing to double digits in the first half.‡ Interest rates: Lending rates have started softening but effective lending rates for the two-wheeler industry remain high on account of risk aversion by banks. and may start perking up in the second half of the coming year if there is an economic revival. Rising inflation may limit the downward trend in interest rates. high fiscal deficit and rising food prices could push up inflation again during the year. if interest rates for two-wheelers continue to remain high and the overall credit-squeeze persists. Still. third and fourth placed competitor. It sold more two wheelers during the year than the combined volumes of the second. However. At the same time. the expected fresh competition in the 100 cc segment in 2010 poses a challenge to the company's stronghold on this segment. over time this could impact the profitability of this segment. prices may be close to bottom levels. HERO HONDA'S PERFORMANCE SETTING THE BENCHMARK Hero Honda was the torchbearer for the two-wheeler industry during the year in review. ‡ Increasing competition: Several two-wheeler companies introduced new models in the lucrative premium segment. ‡ Input costs: Prices of critical inputs came down during the year thanks to lower commodity prices. . However. Hero Honda has de-risked its business by focusing on segments which are not too dependent on financing. it is likely to adversely impact the company's efforts in realizing its full growth potential.

were up 11 per cent. . Without Hero Honda's numbers. During the year.Overall. This performance allowed Hero Honda to increase its share in the domestic scooter market by more than three percentage points. with a 49 per cent growth in domestic sales to 156. up 12 per cent. the two wheeler industry growth would have been marginal.210 units. Motorcycle sales in the domestic market. the company sold 3. which account for more than 95 per cent of Hero Honda's sales. the company also turned in a rollicking performance with its scooter portfolio. Hero Honda's performance in the two-wheeler industry was the only standout performance during the year amongst the large players.72 million two-wheelers.

.Planning observe control These prime constitutes a proper set up of the marketing program in order to get the desired output.

Products of the company .

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