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GROUP MEMBERS:

V.SWARNA LAKSHMI BABITHA SHETTY ARPIT POOJARY AKSHAY PILLAI MEET BHANUSHALI PRACHI VARADKAR MAHEQ BARMARE TEJASHREE GHORPADE

TOPICS COVERED IN THE ASSIGNMENT


Introduction of the existing product chosen Evaluate concept Target audience Difference means of promotion with specific reference to different segments Studying the pricing strategy The distribution network

Our product for the assignment is Splendor bikes produced by Hero MotoCorp. It was originally established in India with the name Hero Honda. It was a collaboration of Hero (an Indian company) with Honda (Japanese company). Hero MotoCorp has launched various products. Many of them were in a very successful but few products have not worked out in the expected manner. SPLENDER IS ONE OF THE BEST SELLING PRODUCTS OF HERO MOTOCORP. But it took a considerable time for establishing its place in the market. It has an electronic ignition and a tubular double cradle type frame with a 97.2 cc engine. As of 2009, Splendor models were selling at a rate of one million per year.

The first model of splendor which was launched in 1994

It is said that A CUSTOMER BUYS THE CONCEPT AND NOT THE PRODUCT. Concept is the basic motive or intention which is attached to the product. It is the very first thing which strikes a persons mind when he hears the products name. Eg. When we talk about complan, the first thing that strikes our mind is getting taller. Consumers favour those products that offer the most quality, performance, or innovative features. The product concept is when the main focus of the company is on the products being. like improving it, adding features to it, making the product superior each time assuming that customers will buy the products because they have greater quality. sometimes they overlook what the customer really needs. This approach is seldom successful. Concept of splendor bikes: when we talk about Splendor bikes by Hero MotoCorp, the first thing that strikes the consumers mind is mileage and getting one of the best quality products at a relatively cheaper price.

The concept/tag line for Splendor bikes is

FILL IT, SHUT IT AND FORGET IT.

Target markets are groups of individuals that are separated by distinguishable and noticeable aspects.Target markets can be separated by the following aspects: Geographic segmentations (their location climate region) Demographic /socio-segmentation (gender, age, income, occupation, education, household size, and stage in the family life cycle) Psychographic segmentation (similar attitudes, values, and lifestyles) Behavioral segmentation (occasions, degree of loyalty) Product-related segmentation (relationship to a product)

A differentiated marketing strategy is one where the company decides to provide separate offerings to each different market segment that it targets. It is also called multi-segment marketing and as is clearly seen that it tries to appeal to multiple segments in the market. Each segment is targeted uniquely as the company provides unique benefits to different segments. It increases the total sales but at the expense of increase in the cost of investing in the business

The main target market of the Splendor was basically middle class and rural people or to be precise lower middle class, middle class, and working class people. These are those people who want to own a stylish bike but cannot afford them. The basic requirement of the target customers of Hero MotoCorp wanted a bike which is reliable, which has good features, mileage, pickup, low maintenance, better technology at a very low cost.

Promotion is one of the marketing mix elements, and a term used frequently in marketing. The specification of five promotional mix are personal selling, advertising, sales promotion, direct marketing, and publicity. A promotional mix specifies how much attention to pay to each of the five subcategories, and how much money to budget for each. A promotional plan can have a wide range of objectives, including: sales increases, new product acceptance, creation of brand equity, positioning, competitive retaliations, or creation of a corporate image. There are three basic objectives of promotion. These are: 1. To present information to consumers as well as others. 2. To increase demand. 3. To differentiate a product.

Promotional strategy: There are different ways to promote a product in different areas of media. Promoters use internet advertisement, special events, endorsements, and newspapers to advertise their product. Many times with the purchase of a product there is an incentive like discounts, free items, or a contest. This is to increase the sales of a given product.

Means of promotion used for splendor: There were various promotional methods taken by the company. During the introduction stage of the product, the company promoted their product by supplying only 10 vehicles to every dealer and also displayed the product in all the showrooms. Every customer who was interested in purchasing hero bikes was being shown the product and its unique and distinctive features were being highlighted which induced the customer to buy the product. Another promotional method was by advertising in newspapers, TV, banners, giving various promotional offers, attractive gifts during festival season and by

providing sponsorships to various events. Hero also adopted the strategy of mouth publicity, employees working in the organisation also promote the product by showcasing the new features of the product.

Market research / market survey is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research. Market research is a key factor to maintain competitiveness over compeptors. Market research provides important information to identify and analyze the market need, market size and competition. Market research, which includes social and opinion research, is the systematic gathering and interpretation of information about individuals or organizations using statistical and analytical methods and techniques of the applied social sciences to gain insight or support decision making. Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is completed, it can be used to determine how to market your product.

Market Survey of spendor: Hero MotoCorp has various marketing officials who directly interact with the targeted customers personally. Enquire about their requirements relating to the product or the expectations they have from the targeted customers. They tried to make a product which is best suited to a customer. The survey stated that customers wanted a bike with low price, high mileage, best technology, low maintenance, durability and a product with simple and style.

Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable. Raising prices is not always the answer, especially in a poor economy. Many businesses have been lost because they priced themselves out of the marketplace. On the other hand, many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients.

Pricing strategy for splendor: pricing strategy differs from one producer to another. The pricing strategy of the Splendor bikes is initially low margin and high volume . The manufacturer targeted at the volume of sales in order to establish their product in the market. They wanted their product to reach to every single potential customer at a faster pace. Currently Splendor prices start at Rs 43,000.

Distribution is the process of making a product or service available for use or consumption by a consumer or business user, using direct means, or using indirect means with intermediaries. Distribution of products takes place by means of channels. Channels are sets of interdependent organizations involved in making the product available for consumption. Agents and brokers are intermediaries that act on behalf of the producer but do not take title to the products. Splendor bikes are distributed through dealers, road, planes and ships.

The latest model of Splendor available in the market

Hero MotoCorp employee www.google.com www.wikipedia.org www.sulekha.com