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. At present hero Honda is market leader in
the Indian market.
Today there are various companies coming in Indian and these
certainly will exist a cutthroat competition in these field . I have
chosen a hero Honda as a topic essence of my project .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 , maintenance
and service etc. while buying a two wheeler .
A normal customer is quit puzzled and faces for an uneven some
time huge problems in deciding which vehicle to buy. I realized the
problem and decide to take these up as the challenge and provide
answer to as the requirement of the Hero Honda.





Chapter - 1

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 . 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. ]
Buyer’s expectation formed on the basis of past buying experience,
friend and the associate advice and the marketers and the
competitor’s information and promises. if marketers raise
expectations two high , the buyer is likely to be disappointed . Even if
the company sets expectation should match the performances.
≈} A customer is the most important person even in
any company
≈} A customer never depend on company, but the
company depends on him.
≈} A customer is the person who bring company his
Wants.
≈} A customer is not a interruption of marketers
Work he is the purpose of it.


Two wheelers in India
In 60 decade several vehicles were running in the Indian roads those
are the sun beams, AIS, BBA and Royal Enfield. From these motor
cycles only the Royal Enfield has existence in the motorcycle market.
After 60 decade some other motorcycles and scooter had been
launched in Indian two wheeler market those are the Rajdoots, Java,
Vespa and Lamrata .
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.



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

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.
× Indeed, our brand identity is shaped as much by their belief in
hero Honda as the as it it’s our brand.
× We can do this by the living on the brand essence and by
continuously seeking to enhance our customer experience.
× In doing so, we ensure a special pace for our self in the heart
and in the mind of the customer.

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.
× Our brand essence is excitement
× Hero Honda strives to inspire the confidence through te
excitement engineering.
× Blending together youthfull creativity and competitive
technology to exceed the spoken and the implict
expectations of our customers.
× By challenging the given . by exploring the unknown and
thereby stretching ourself towards tomorrow, today.

Learning
× Learning is how we insure our proactively
× It is the values that embraces knowledges as the plat form
for the building well informed.
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.
Speed
× It is how we convey clear convection.
× It is the value that keeps us sharpley responsive , mirroring
our commitment towards our goal and process.
Chapter -2



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

In the mid-1980s the Indian government regulation changed and
permitted companies to enter the Indian through minority joint
venture. The two wheeler market with for indo Japanese joint venture:
Hero Honda TVS S Suzuki, Bajaj Kawasaki and kinetic Honda. 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.
× Hero entered the joint venture for technical and financial
participation with one of the largest automotive makers
× Honda motors company limited of Japan, in 1984 for the
manufacturing of 100cc motor cycles in India.
× Group companies Hero corporate service limited – Hero
mind mine –munlal
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.

Company profile
Hero is the brand name used by the Munjal brother in the year 1956
with the flag ship company hero cycle’s .the two wheeler
manufacturing business of bicycle component had originally started in
the 1940’s and turned in the world largest bicycle manufacture today.
The Munjal run their own steel make free wheel and other critical
bicycle component and and have diversified in to different like product
design. the Hero group philosophy is;
“ 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. Brijmohan lal munjal , the chair man and managing
director of hero Honda motors , headed an alliance between the
Munjal family and Hero Honda company LTD HHM mission statement
is :
” we, at hero Honda , are continuously striving for synergy
between technology , system and human resources to provide
product and services that meet the quality price and aspirations
of the customer”.

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

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

Hero Honda’s Marketing Strategies in India
New Delhi, October 21, 2008: Hero Honda Motors Ltd
(HHML), the world's largest two-wheeler company for seven
consecutive years, today firmly reiterated its undisputed
leadership in the domestic two-wheeler market with
impressive bottom line growth for the second quarter (Q2)
– July to September - of this financial year (FY) 2008-09.
Even as the industry continued to face tough market conditions
on account of uncertainty over interest rates and overall credit
squeeze, the company reported 50 per cent growth in profit
after tax (PAT) at Rs 306.30 crore for the second quarter. Hero
Honda's profit after tax in the corresponding period last fiscal
(July - Sept, 2007-08) stood at Rs 204.33 crore.
Total turnover (Net sales & Other Operating income) grew to Rs
3202 crore, a growth of 35.6 per cent over Rs 2361 crore
recorded in the corresponding period last fiscal. The company
has recorded an EBIDTA margin of 13.58 per cent in the
quarter. The EBIDTA margin in the previous quarter (April -
June '08) was 12.20 per cent.
The strong financial performance is in line with the company's
better-than-industry top line growth. After posting a growth
11.38 per cent in the first quarter, the company kicked off the
second quarter with a 39.8 per cent growth in sales in the month
of July, and followed up with 26.8 per cent growth in August and
22.4 per cent in September. Hero Honda consistently keeps
growing its share in the domestic motorcycle market, and
currently enjoys over 55 per cent share.



Dr. Brij Mohan Lall, Chairman, Hero Honda Motors Ltd,
Said "We are happy with our financial performance. It gives immense
joy to see this kind of results in the 25th year of our company. I wish
to thank all our stakeholders – customers, associates, dealer friends,
ancillaries and also our joint venture partners Honda Motors Co – for
their continuous support."

Mr. Pawan Munjal, MD & CEO, Hero Honda Motors
Ltd,
said "Our numbers speak for themselves. Even in this volatile and
competitive environment, our top line continues to outpace the
industry growth, our market share is at an all time high, and the
financial balance sheet is a delight – all the factors which form the
hallmark of a resilient company with cutting-edge management. We
will continue to keep innovating – in bringing in technologically-
superior products, in our network expansion, in brand building, in our
financial management, and in our communication."
"Going forward, we will have to keep a close watch on the commodity
prices movement, and other factors such as inflation, interest rate
scenario and availability of retail finance. These factors will play a
crucial role in the industry growth in the subsequent quarters," he
added.

Mr. Pawan Munjal, Managing Director, Hero Honda Motors Ltd ,
“The year 2007-08 has seen a leadership performance from us.
Despite the industry slowdown, we have been able to manage
positive growth thereby taking our share in the domestic motorcycle
market upward of 52 per cent. At the end of the financial year, I would
definitely like to thank our millions of customers across the country,
who have made it possible. 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.”
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, supporting them with
innovative communication across media, 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, HERO HONDA OVERTAKES PREVIOUS
FISCAL’S SALES TALLY, EVEN AS DOMESTIC MOTORCYCLE
INDUSTRY DECLINES BY MORE THAN 10 %)

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

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

SEGMENTATION, TARGETING & POSITIONING
From the current segmentation, targeting & positioning and
consumer surveys we found that our client has targeted the
following segments:
♦ Congested areas of urban cities.
♦ Males/Females between the age group of 18-36
♦ Middle class people , 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.e. less chances of breakdown)
which is 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.
The gap between motorcycles sold by Hero Honda and its closest
rival is approximately 1 m units (23% of industry size). 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. No doubt, that the shift
in preference of Indian populace from scooters and mopeds towards
motorcycles has facilitated the growth of Hero Honda. However its
performance vis-à-vis industry indicates that the performance of Hero
Honda was better than the industry peers, barring two years. In the
seven-year period ending FY04, it has achieved a CAGR of 30% in
two-wheeler volumes against 11% of the industry.

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

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

EXAMPLES
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, there are few features included here
are trip meter, peep hole, large utility box etc. Some safety features
included here are pass switch and push cancel indicator switch,
muffler with heat shield etc.
Splendor +
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.
Splendor NXG
Splendor NXG comes with a new engine and pioneering features and
combines stylish looks with a high performance engine. It features
trapezoidal multi -reflector headlamps which is powerful even at low
speeds. 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. Circuitry for the low beam and pilot lamp has also been
enhanced for low variation in intensity arising from changes in the
engine rpm.

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

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

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

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

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

Evaluating and Selecting the Market Segments
Single- 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


M1 M2 M3
P1
P2

P3
Full Market Coverage
M1 M2 M3
P1
P2
P3
Single Segment Concentration:-
The farm equipment division of Mahindra & Mahindra concentrates
on tractors, primarily targeted at agricultural markets. The Zodiac
brand concentrates on formal shirts for executives and professionals.
Especially hospitals focus on specific therapeutic areas such as
cancer care, heart specialty, neonatal care and gynecology. Through
concentrated marketing, the firm gains a strong knowledge of the
segment’s needs and achieves a strong market presence.
Furthermore, the firm enjoys operating economies through
specializing its production, distribution and promotion. If it captures
segment leadership, the firm can earn a high return on its investment.

Selective specialization: - A firm selects a number of segments,
each objectively attractive and appropriate. There may be little or no
synergy among the segments, but each promises to be moneymaker.
This multi segment strategy has the advantage of diversifying the
firm’s risk. When Procter & Gamble launched crest White strips, initial
target segments included newly engaged women and brides to be as
well as gay males.
Product specialization: - The firm makes a certain product that
it sells to several different market segments. A microscope
manufacturer, for instance, sells to university, government, and
commercial laboratories. The firm makes different microscopes for
the different customer groups and builds a strong reputation in the
specific product area. The downside risk is that the product may be
supplanted by an entirely new technology.
Hero Honda used Product Specialization for target market of
Hero Honda Splendor.
Market specialization: - The firm concentrates on serving many
needs of a particular customer group. For instance, a firm can sell an
assortment of products only to university laboratories. The firm gains
a strong reputation in serving this customer group and becomes a
channel for additional products the customer group can use. The
downside risk is that the customer group may suffer budget cuts or
shrink in size.
Full market coverage: - The firm attempts to serve all customer
groups with all the products they might need. Only very large firms.
Such as Microsoft (software market), General motors’ (vehicle
market), and coca-cola (nonalcoholic beverage market).

Additional considerations
Two other considerations in evaluating and selection segments are
segment-by-segment invasion plans and ethical choice of market
targets.
Segment-by-segment invasion plans: -
A company would be wise to enter on segment at a time. Competitors
must not know to what segment(s) the firm will move into next.
Segment-by-segment invasion plans are illustrated three firms, A, B,
and C, have specialized in adapting computer systems to the needs
of airlines, passenger transport, and goods transport companies.
Company A meets all the computer needs of airlines.
Ethical choice of market targets: -
marketers must target segments carefully to avoid consumer
backlash. Some consumers may resist being labeled. Singles may
reject single. Serve food packaging because they don’t want to be
reminded they are eating alone. Elderly consumers who don’t feed
their age may not appreciate products that identify them as “old”
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, the
goal is to locate the brand in the minds of consumers to maximize the
potential benefit to the firm. A good brand positioning helps guide
marketing strategy by clarifying the brand’ essence, what goals it
helps the consumer achieves, and how it does so in a unique way.
Everyone in the organization should under- stand the brand
positioning and use it as context for making decisions.
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. Competitive analysis will consider a whole host
of factors-including the resources, capabilities and likely intension of
various other firms-in choosing those markets where consumers can
be profitably served.

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.]
Basic Product: -
The basic product of Hero Honda splendor are Engine, Handle,
Shockers, Wheels, Gear box and chain set etc.
Expected Product: -
The expected products of Hero Honda splendor are: -
1. It should be 5 gear boxes.
2. It should be 90 Km/l mileages.
3. It should be 120 Km/hour Maximum speeds.
4. It should be disk brake or power brake.
5. It should be steel body.
6.
Augmented Product: -
The augmented products of Hero Honda Splendor are: -
1. It provides monthly check up for decrease the pollution.
2. It provides fast service of the product.

Pricing Strategy: -
Penetration Pricing: -
The price charged for products and services is set artificially low in
order to gain market share. Once this is achieved, the price is
increased. 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.
Price Skimming: -
Charge a high price because you have a substantial competitive
advantage. However, the advantage is not sustainable. The high
price tends to attract new competitors into the market, and the price
inevitably falls due to increased supply. Manufacturers of digital
watches used a skimming approach in the 1970s. Once other
manufacturers were tempted into the market and the watches were
produced at a lower unit cost, other marketing strategies and pricing
approaches are implemented.
Premium pricing, penetration pricing, economy pricing, and price
skimming are the four main pricing policies/strategies. They form the
bases for the exercise. However there are other important
approaches to pricing.

Promotion: -
Below the Line Promotion: -
‘Below The Line is a common technique used for touches and feel
products. Those consumer items where the customer will rely on
immediate information than previously researched items. Below The
Line techniques ensure recall of the brand while at the same time
highlighting the features of the product.
Above The Line Promotion: -
Above the line (ATL) is an advertising technique using mass media to
promote brands. Major above-the-line techniques include TV and
radio advertising, print advertising and internet banner ads. This type
of communication is conventional in nature and is considered
impersonal to customers. The ATL strategy makes use of current
traditional media: television, newspapers, magazines, radio, outdoor,
and internet.
Hero Honda used Above the Line Promotion because in the Above
the Line promotion co. members used advertisement through Radio,
T.V., Newspaper and Other media communications.

Place: -
Geographical Placing: - Geographical placing of the product
has divided into 4 markets and these are: -
1. Local
2. National
3. Regional
4. International
Hero Honda used National Market for sale the Hero Honda Splendor.
Considering all facts of marketing in a unique way for proper
and efficient definition of marketing.

Marketing threats


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; 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.
• 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. However, Hero Honda has de-risked its
business by focusing on segments which are not too dependent on
financing. Still, if interest rates for two-wheelers continue to remain
high and the overall credit-squeeze persists, it is likely to adversely
impact the company's efforts in realizing its full growth potential.
• Inflation: After climbing to double digits in the first half, inflation
growth was close to zero per cent by year-end. However, high fiscal
deficit and rising food prices could push up inflation again during the
year. Rising inflation may limit the downward
trend in interest rates.
• Increasing competition: Several two-wheeler companies
introduced new models in the lucrative premium segment; over time
this could impact the profitability of this segment. 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.
• Input costs: Prices of critical inputs came down during the year
thanks to lower commodity prices. However, prices may be close to
bottom levels, and may start perking up in the second half of the
coming year if there is an economic revival.

HERO HONDA'S PERFORMANCE
SETTING THE BENCHMARK
Hero Honda was the torchbearer for the two-wheeler industry during
the year in review. It sold more two wheelers during the year than the
combined volumes of the second, third and fourth placed competitor.
Overall, the company sold 3.72 million two-wheelers, up 12 per cent.
Motorcycle sales in the domestic
market, which account for more than 95 per cent of Hero Honda's
sales, were up 11 per cent.
During the year, the company also turned in a rollicking performance
with its scooter portfolio, with a 49 per
cent growth in domestic sales to 156,210 units. This performance
allowed Hero Honda to increase its share
in the domestic scooter market by more than three percentage points.
Hero Honda's performance in the two-wheeler industry was the only
standout performance during the year amongst the large players.
Without Hero Honda's numbers, the two wheeler industry growth
would have been marginal.


Planni
ng

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

Planni
ng
control
observ
e
Products of the company


Bibliography
WEBSITE:
WWW.HEROHONDA.COM
WWW.HEROCYCLES.COM
WWW.WEKIPEDIA.COM
WWW.TIMESOFINDIA.COM
HTTP://WWW.THEHINDUBUSINESSLINE.COM
HTTP://ECONOMICTIMES.INDIATIMES.COM/SEARCH.CMS
WWW.INDIAINFOLINE.COM
HTTP://WWW.FADAWEB.COM/INDIA
BOOKS:
AUTOCARE
OVERDRIVE
INDIA AUTO
Introduction:
This project discusses the "Marketing Strategies of Hero Honda". This project undertaken by us
is an attempt to understand, appreciate and develop a marketing strategy or plan. Through Hero
Honda CBZ, we have identified various processes involved in conceptualizing a marketing plan,
from consumer surveys, analysis of competitors, to segmentation. We chose Hero Honda CBZ as
our product of study because Hero Honda is the market leader in the motor cycle industry. Also
Hero Honda has developed different marketing strategies for different products based on the
target market. We chose CBZ because through CBZ, Hero Honda entered the four stroke
segment market. Hence choosing this product involved an insight into the development of a
marketing plan. Our project focuses on a few key areas:
Firstly, after a brief introduction of the company and the product, we have examined the various
strengths, weaknesses, opportunities and threats of our product .This gives an insight on the
external and internal environment our product is operating in .Thereafter we have developed a
SWOT matrix of CBZ.
Next, as the saying goes “Consumer is king”; through a consumer survey, we have tried to
understand the psychology and behavior of the motor cycle customer, in terms of buying roles,
decision making process, and purchase and post purchase behavior. Through this survey we have
also probed into the various factors, which would make CBZ a more popular product.
The third section of our report includes an analysis of the competitive forces in the motor cycle
industry according to Porter’s five forces model, identification of brand, industry, form and generic
competition faced by CBZ, activities of various competitors to understand its competitive scenario,
and also analysis of competitive strategies followed by Hero Honda.
Next, our report includes segmentation profile of our product by identifying the target market. The
profile includes behavioral, demographic and geographical factors. Finally, through the conclusion
we discuss our learning from the project undertaken.
Number of Pages of Project Report:66
Package Includes: Project Report
Project Format: Document (.doc)
Table of Contents of Project Report:
1. Executive Summary
2. Hero Honda
3. Cbz
4. Product Specifications
5. SWOT Analysis
- Strengths
- Weaknesses
- Opportunities
- Threats
6. Swot Matrix
7. Customer Behavioural Analysis
8. The Competition
9. Industry Concept of Competition
10. Competition in the Motorcycle Industry For
11. Hero Honda Cbz
12. Analysis In Terms Of Porter’s 5 Forces Model
13. Analyzing the Competition
14. Customer Value Analysis
15. Segment Profile of Target Market for Cbz
16. Conclusion
17. References

A normal customer is quit puzzled and faces for an uneven some time huge problems in deciding which vehicle to buy. I realized the problem and decide to take these up as the challenge and provide answer to as the requirement of the Hero Honda.

Chapter .1 Introduction .

if marketers raise expectations two high . ] Buyer’s expectation formed on the basis of past buying experience. 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.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 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. but the company depends on him. ≈} A customer is the most important person even in any company ≈} A customer never depend on company. the buyer is likely to be disappointed . if the performance fall short of expectation the customer is dissatisfied . ≈} A customer is the person who bring company his .

Java.Wants. After 60 decade some other motorcycles and scooter had been launched in Indian two wheeler market those are the Rajdoots. Two wheelers in India In 60 decade several vehicles were running in the Indian roads those are the sun beams. From these motor cycles only the Royal Enfield has existence in the motorcycle market. 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 . Vespa and Lamrata . ≈} A customer is not a interruption of marketers Work he is the purpose of it. BBA and Royal Enfield. AIS.

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 . Objectives of the study ≈} To know the customers expectations towards hero Honda.

≈} To give the appropriate suggestion to the company regarding he performances. Our brand Our brand identity: .Various aspect of the bike.

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

by exploring the unknown and thereby stretching ourself towards tomorrow. Learning  Learning is how we insure our proactively  It is the values that embraces knowledges as the plat form for the building well informed. .  By challenging the given . Our brand essence is excitement  Hero Honda strives to inspire the confidence through te excitement engineering. 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.  Blending together to youthfull the creativity spoken and and competitive the implict technology exceed expectations of our customers. today.

Speed  It is how we convey clear convection.  It is the value that keeps us sharpley responsive . Chapter -2 . mirroring our commitment towards our goal and process.

before the economic liberalization . 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 . another company Bajaj automobiles LTD. India has a mix of 30 percent automobile and 70 % two wheeler in the country.6 million vehicles.History India has the largest number of two wheeler in the world with41.these regulatory maze . API manufacture the lamberts but. did not allow the foreign companies to enter the market and import were tightly controlled . made the business easier for local player to have a . 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.

In the mid-1980s the Indian government regulation changed and permitted companies to enter the Indian through minority joint venture. Ideal Jawa and escorts took the middle and lower end of the market respectively. The motorcycle segment has the same long wait time with three manufacture. By the year 1990. there was little competition for there costumer . Royal Enfield. Customer in India was forced to wait 2 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not make a marketing department. Bajaj Kawasaki and kinetic Honda. The entry of these foreign companies changed the Indian market dynamics from the supply side to demand side with a large selection . Royal Enfield made a 350cc bullet wit the only four – stroke engine at that time and took the higher end of the higher end of the market but . only in dispatch department. ideal Jawa and Escorts. The two wheeler market with for indo Japanese joint venture: Hero Honda TVS S Suzuki.seller market . Bajaj has a waiting list that has twenty six times of annual output for scooter.

of two wheelers on Indian market customer started gain over the product they bought and raise the higher customer expectation.  Hero entered the joint venture for technical and financial participation with one of the largest automotive makers  Honda motors company limited of Japan. in 1984 for the manufacturing of 100cc motor cycles in India.  Group companies Hero corporate service limited – Hero mind mine –munlal 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 Munjal run their own steel make free wheel and other critical bicycle component and and have diversified in to different like product design. “ 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 . the Hero group philosophy is.the two wheeler manufacturing business of bicycle component had originally started in the 1940’s and turned in the world largest bicycle manufacture today. .Company profile Hero is the brand name used by the Munjal brother in the year 1956 with the flag ship company hero cycle’s .

PLUS PASION PLUS PRICE 32900 36650 36740 39550 41250 43750 RTO 1699 1850 1850 2050 2099 2105 INS 845 918 912 999 999 1005 TOTAL 35444 39467 39502 42599 42599 46905 . the chair man and managing director of hero Honda motors . Brijmohan lal munjal . at hero Honda .In year 1984 Mr. system and human resources to provide product and services that meet the quality price and aspirations of the customer”. Product profile Price list Model CD-Dawn CD-DLX(MAC) PLEASURE SPL.NXG SPL. headed an alliance between the Munjal family and Hero Honda company LTD HHM mission statement is : ” we. are continuously striving for synergy between technology .

excellent blue  CD DELUXE Candy blazing red. metallic. cloud silver.SPL(MAC) GLR. amaranth maroon. cool mint grey.(DISK/SELF CBZ. cloud silver metallic. impulse orange metallic.(RING) SUP. tornado metallic grey.(MAC/SELF) GLR.EXE (SELF/DISK) HUNK KARIZMA CD-DELUXE(RING) 44150 44900 46250 48250 57500 57000 73900 35400 2199 2399 2250 2350 2750 2725 3400 1800 1024 1109 1055 1086 1218 1216 1446 899 47373 48408 49555 51686 61468 60941 78746 38098 Colors in Vehicle  GLAMOUR Candy blazing red.SUP.  SPLEDOUR . candy Tahitian blue.SPL.

 KARIZMA Green . yellow shade. amazing blue metallic.  PASSION PLUS Moon yellow. . red  CD 100SS Candy ruby red black . boon silver.  CD DAWN Black . Tahitian blue metallic. cloud silver . granti blue metallic. Tahitian blue. sky blue black metallic. sierra metallic. grey silver.maroon.amaranth maroon.green metallic.black candy red .black with purple strips. metallic. Candy blazing red.  PLEASURE Orange . Candy blazing red. blaze .

today firmly reiterated its undisputed leadership in the domestic two-wheeler market with impressive bottom line growth for the second quarter (Q2) – July to September . the company reported 50 per cent growth in profit after tax (PAT) at Rs 306. Total turnover (Net sales & Other Operating income) grew to Rs . Even as the industry continued to face tough market conditions on account of uncertainty over interest rates and overall credit squeeze. 2008: Hero Honda Motors Ltd (HHML). Hero Honda's profit after tax in the corresponding period last fiscal (July Sept.Hero Honda’s Marketing Strategies in India New Delhi. 2007-08) stood at Rs 204. the world's largest two-wheeler company for seven consecutive years.33 crore. October 21.30 crore for the second quarter.of this financial year (FY) 2008-09.

The strong financial performance is in line with the company's better-than-industry top line growth. a growth of 35. After posting a growth 11. and followed up with 26.4 per cent in September. The company has recorded an EBIDTA margin of 13. and currently enjoys over 55 per cent share.8 per cent growth in sales in the month of July.20 per cent. the company kicked off the second quarter with a 39. Hero Honda consistently keeps growing its share in the domestic motorcycle market. The EBIDTA margin in the previous quarter (April June '08) was 12.6 per cent over Rs 2361 crore recorded in the corresponding period last fiscal.3202 crore.8 per cent growth in August and 22. .58 per cent in the quarter.38 per cent in the first quarter.

" . Said "We are happy with our financial performance. associates. MD & CEO. and in our communication. Hero Honda Motors Ltd. We will continue to keep innovating – in bringing in technologicallysuperior products. Hero Honda Motors Ltd. I wish to thank all our stakeholders – customers. Even in this volatile and competitive environment. Brij Mohan Lall. in our network expansion. our top line continues to outpace the industry growth. said "Our numbers speak for themselves. ancillaries and also our joint venture partners Honda Motors Co – for their continuous support. in our financial management. our market share is at an all time high. and the financial balance sheet is a delight – all the factors which form the hallmark of a resilient company with cutting-edge management. Pawan Munjal. in brand building. It gives immense joy to see this kind of results in the 25th year of our company." Mr. Chairman.Dr. dealer friends.

Managing Director. Pawan Munjal. we have been able to manage positive growth thereby taking our share in the domestic motorcycle . Despite the industry slowdown." he added. These factors will play a crucial role in the industry growth in the subsequent quarters. and other factors such as inflation. Mr."Going forward. we will have to keep a close watch on the commodity prices movement. “The year 2007-08 has seen a leadership performance from us. Hero Honda Motors Ltd . interest rate scenario and availability of retail finance.

HERO HONDA OVERTAKES PREVIOUS FISCAL’S SALES TALLY. 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.market upward of 52 per cent. I would definitely like to thank our millions of customers across the country. EVEN AS DOMESTIC MOTORCYCLE INDUSTRY DECLINES BY MORE THAN 10 %) . At the end of the financial year. supporting them with innovative communication across media. who have made it possible.” 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. 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.

HERO

HONDA

CONTINUES

TO

CONSOLIDATE

MARKET

LEADERSHIP WITH 27 PER CENT GROWTH IN AUGUST SALES

New Delhi, Tuesday, April 21, 2009: Reports robust sales of 305,516 units during the month

Mr. Anil Dua, Sr. Vice President (Marketing & Sales), Hero Honda Motors Ltd, “Our strategy is yielding results. The strategy hinges on creating winning brands across segments, investing in brand building, exploring untapped markets in rural and upcountry areas while consolidating urban presence and rapidly expanding our network. However, the industry continues to face uncertainty on account of high interest rates and overall credit squeeze. The festival month of

October is going to be crucial in determining the overall outlook of the industry for the year.”

Key Hero Honda brands continue to drive strong volumes across segments - CD Deluxe in entry segment, Glamour, the new Splendor NXG, Splendor + and Passion Plus in deluxe segment, and Hunk, CBZ X-treme and Karizma in the premium segment.

Hero Honda’s scooter Pleasure has also been growing strongly, with more than 12,000 units being sold in August this year.

New

Delhi,

Tuesday,

April

21,

2009:

Highlights

Corporate performance: • Consolidated over 50% share in the domestic motorcycle market

• Reported highest ever sales in a month in October 2007 (365,022 units)

• Crossed half a million retail sales in the festive season • Closed calendar year 2007 with sales of over 33 lakh twowheelers

Mr. Pawan Munjal, Managing Director & CEO, Hero Honda Motors Ltd. said, “Given the industry slowdown scenario, we are very enthused by our robust financial numbers for the third quarter. However, this was not unexpected. We had undertaken some strategic initiatives since the beginning of this fiscal, including a conscious effort to rationalize costs across the board, and its results are now visible. Our bottom line has seen a consistent improvement, and we have been able to demonstrate that it is

Hero Honda's strategy for aggressive top line growth through new product launches. we should be able to further improve upon our financial results. despite the slowdown in the two-wheeler industry. SEGMENTATION.possible to keep gaining market share while maintaining a robust bottom line. brand building initiatives backed by innovative communication has resulted in market share gain across every segment.” he added. Hero Honda’s share in domestic motorcycles market has been growing upward of 50 per cent. TARGETING & POSITIONING . “With input costs softening and our sharp focus on cost efficiencies. Indeed.

♦ Males/Females between the age group of 18-36 ♦ Middle class people . Since redesigning of bike may involve a big task and huge investment therefore we recommended repositioning the bike. less chances of breakdown) which is absent in its competitors.e.From the current segmentation. . in order to meet the sales target. one is to redesign the bike and second is to reposition the bike as “Bike with one time investment”. two options are available with the client. targeting & positioning and consumer surveys we found that our client has targeted the following segments: ♦ Congested areas of urban cities. 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. Therefore.

. In the seven-year period ending FY04.The gap between motorcycles sold by Hero Honda and its closest rival is approximately 1 m units (23% of industry size). However its performance vis-à-vis industry indicates that the performance of Hero Honda was better than the industry peers. from 42% in FY99 to 77% in FY04. it has achieved a CAGR of 30% in two-wheeler volumes against 11% of the industry. No doubt. One of the reasons for the tremendous performance of Hero Honda is the significant increase of share of motorcycles in the two-wheeler segment. 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 Positioning Targeting Key factor of marketing strategy “India and Bharat co. We seek to walk & march with both India and Bharat” .exist today. India comprises of fast growing cities and town. Bharat is made up of villages entering the economic main stream.

The company has embarked upon a green field expansion plan and has earmarked Rs 2 bn for the same. It should be noted that the company has a strong cash flow .Strong Fundamentals The company has clarified about its intention of setting a third plant in addition to its existing two plants.

EXAMPLES Super Splendor This Bike comes with 125 cc new generation quantum core engine with an output of 9 bhp (6. peep hole. it generated Rs 9 bn from operation in FY04 and is virtually a debt free company. Its relaxing seating arrangement with other comfort features like less strain while clutching and declutching.7 kw). there are few features included here are trip meter. Some safety features included here are pass switch and push cancel indicator switch. large utility box etc. makes it more market friendly bike. For the convenience of the biker. .position. low noise and less vibration engine etc.

OHC engine delivers power of 5.5 Kw (7. Running with the maximum mileage of 85 kmph. Splendor NXG . Its double cradle frame gives the steadiness in biking. Lighting fitting included in it like multi reflector with halogen bulb makes the biking secured at every time. this bike is giving the optimum satisfaction for long journey.5PS) @ 8000 rpm . Splendor + 4 stroke single cylinder lair-cooled.muffler with heat shield etc. 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. regions. cities. . or neighborhoods. In the South Asian context. states. Segmentation of Hero Honda Splendor: - Geographical Segmentation Geographic Segmentation calls for division of the market into different geographical units such as nations. countries.Splendor NXG comes with a new engine and pioneering features and combines stylish looks with a high performance engine. 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. It features trapezoidal multi -reflector headlamps which is powerful even at low speeds.

we divide the market into groups on the basis of variables such as age. across different countries. race.geographic segmentation assumes importance due to variations in consumer preferences and purchase habits across different regions. by personality type). family life cycle. generation. income. religion. Demographic Segmentation In Demographic Segmentation. and across different states in these countries. family size. . 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. Even when we describe the target market in non- demographic terms (say. nationality and social class. Another is that they’re easy to measure. One reason demographic variables are so popular with marketers in that they’re often associated with consumer needs and wants. occupation. education.

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

. sophisticated.successful. “take.charge” people with high self-esteem. niche-oriented products and services. Innovators: . active.The four groups with higher resources are: 1. Purchases often reflect cultivated tastes for relatively upscale.

enthusiastic. satisfied. 3. goal-oriented people who focus on career and family. They spend a comparatively high proportion of income on fashion. Strivers- trendy and fun-loving people who are resource constrained. Thinkers. They favor stylish products that emulate the purchases of those with greater material wealth.Young. knowledge and responsibility. The four groups with lower resources are: 1. and reflective people who are motivated by ideals and who value order. Experiences.2. conventional. .conservative.mature. 2. entertainment and socializing. they favor premium products that demonstrate success to their peers 4. impulsive people who seek variety and excitement. They prefer familiar products and are loyal to established brands. Achievers.successful. and value in products. and traditional people with concrete beliefs. Believers. They seed durability. functionality.

Recognition of the different buying roles and specification of the people who play these roles for specific . 4. self-sufficient people who like to work with the hands. or response to a product. Decision Roles: People play five roles in a buying decision: Initiator. marketers divide buyers into groups on the basis of their knowledge of.3. use of. Makers. down-to-earth. Influencer.Elderly.Practical. Decider. Behavior Segmentation: In behavioral segmentation. They seek products with a practical or functional purpose. Survivors. passive people who are concerned about change. Buyer and User. attitude toward. They are loyal to their favorite brands.

and attitude-are the best starting points for constructing market segments.products and services are vital for marketers. user status. loyalty status. benefits. buyer readiness stage. This is especially useful for designing the communication strategy. Behavioral Variables: Many marketers believe behavioral variables-occasions. usage rate. Market Targeting: - Effective Segmentation Criteria .

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

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

P1 P2 P3 Product Specialization M1 M2 M3 P1 P2 P3 Market Specialization .

M1 M2 M3 P1 P2 P3 Full Market Coverage M1 M2 M3 P1 P2 P3 Single Segment Concentration:- .

The farm equipment division of Mahindra & Mahindra concentrates on tractors. Through concentrated marketing. The Zodiac brand concentrates on formal shirts for executives and professionals. When Procter & Gamble launched crest White strips. primarily targeted at agricultural markets. There may be little or no synergy among the segments. operating specializing its production. initial .A firm selects a number of segments. heart specialty. each objectively attractive and appropriate. If it captures segment leadership. distribution and promotion. the firm can earn a high return on its investment. This multi segment strategy has the advantage of diversifying the firm’s risk. Selective specialization: . Especially hospitals focus on specific therapeutic areas such as cancer care. the firm gains a strong knowledge of the segment’s needs the and firm achieves enjoys a strong market economies presence. neonatal care and gynecology. but each promises to be moneymaker. through Furthermore.

a firm can sell an assortment of products only to university laboratories. sells to university. The firm makes different microscopes for the different customer groups and builds a strong reputation in the specific product area. and commercial laboratories.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. For instance. Product specialization: . for instance. . A microscope manufacturer.target segments included newly engaged women and brides to be as well as gay males. Market specialization: . government. The firm gains a strong reputation in serving this customer group and becomes a channel for additional products the customer group can use.The firm concentrates on serving many needs of a particular customer group. Hero Honda used Product Specialization for target market of Hero Honda Splendor. The downside risk is that the customer group may suffer budget cuts or shrink in size.

. B. have specialized in adapting computer systems to the needs of airlines. Company A meets all the computer needs of airlines. passenger transport. and C. Only very large firms. Additional considerations Two other considerations in evaluating and selection segments are segment-by-segment invasion plans and ethical choice of market targets. and goods transport companies. Competitors must not know to what segment(s) the firm will move into next. Segment-by-segment invasion plans are illustrated three firms.The firm attempts to serve all customer groups with all the products they might need. Segment-by-segment invasion plans: A company would be wise to enter on segment at a time. General motors’ (vehicle market). and coca-cola (nonalcoholic beverage market). A. Such as Microsoft (software market).Full market coverage: .

Serve food packaging because they don’t want to be reminded they are eating alone. Some consumers may resist being labeled. the goal is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. A good brand positioning helps guide . Elderly consumers who don’t feed their age may not appreciate products that identify them as “old” 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.Ethical choice of market targets: marketers must target segments carefully to avoid consumer backlash. Singles may reject single.

stand the brand positioning and use it as context for making decisions. . 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.marketing strategy by clarifying the brand’ essence. and how it does so in a unique way. Competitive analysis will consider a whole host of factors-including the resources. what goals it helps the consumer achieves. capabilities and likely intension of various other firms-in choosing those markets where consumers can be profitably served. Everyone in the organization should under.

It should be 5 gear boxes. 3. It should be steel body. Shockers. Augmented Product: - . Gear box and chain set etc. Wheels. It should be 120 Km/hour Maximum speeds.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. 5.] Basic Product: The basic product of Hero Honda splendor are Engine. 4. It should be 90 Km/l mileages. 2. Expected Product: The expected products of Hero Honda splendor are: 1. It should be disk brake or power brake. 6. Handle.

The augmented products of Hero Honda Splendor are: 1. Hero Honda Used penetration pricing strategy because that time Hero Honda use National Segment and low income persons so they used penetration strategy. Once this is achieved. It provides fast service of the product. Price Skimming: - . 2. Pricing Strategy: - Penetration Pricing: The price charged for products and services is set artificially low in order to gain market share. This approach was used by France Telecom and Sky TV. the price is increased. It provides monthly check up for decrease the pollution.

Once other manufacturers were tempted into the market and the watches were produced at a lower unit cost. economy pricing. other marketing strategies and pricing approaches are implemented. Those consumer items where the customer will rely on . However. However there are other important approaches to pricing. Promotion: - Below the Line Promotion: ‘Below The Line is a common technique used for touches and feel products. and the price inevitably falls due to increased supply. Manufacturers of digital watches used a skimming approach in the 1970s. They form the bases for the exercise. The high price tends to attract new competitors into the market. Premium pricing. the advantage is not sustainable. penetration pricing. and price skimming are the four main pricing policies/strategies.Charge a high price because you have a substantial competitive advantage.

Above The Line Promotion: Above the line (ATL) is an advertising technique using mass media to promote brands. and internet.V. Below The Line techniques ensure recall of the brand while at the same time highlighting the features of the product. T. Newspaper and Other media communications.immediate information than previously researched items. outdoor. This type of communication is conventional in nature and is considered impersonal to customers. newspapers. The ATL strategy makes use of current traditional media: television. magazines.. radio. print advertising and internet banner ads. Hero Honda used Above the Line Promotion because in the Above the Line promotion co. . Major above-the-line techniques include TV and radio advertising. members used advertisement through Radio.

National 3. International Hero Honda used National Market for sale the Hero Honda Splendor. .Place: Geographical Placing: . Regional 4. Local 2.Geographical placing of the product has divided into 4 markets and these are: 1.

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

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MANAGING RISK IS HALF THE BATTLE WON .

and this could affect Hero Honda's near term plans for an increased presence in this segment.RISKS AND CONCERNS • Slowdown: Sales in the lucrative premium two wheeler segment (150 cc and above) have been affected by the economic slowdown. . a quick return to robust growth is unlikely. • 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. Still. if interest rates for two-wheelers continue to remain high and the overall credit-squeeze persists. it is likely to adversely impact the company's efforts in realizing its full growth potential. However. Hero Honda has de-risked its business by focusing on segments which are not too dependent on financing.

• Increasing competition: Several two-wheeler companies introduced new models in the lucrative premium segment. the expected fresh competition in the 100 cc segment in 2010 poses a challenge to the company's stronghold on this segment. However. inflation growth was close to zero per cent by year-end. • Input costs: Prices of critical inputs came down during the year thanks to lower commodity prices. At the same time. However. prices may be close to bottom levels. 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. . over time this could impact the profitability of this segment. high fiscal deficit and rising food prices could push up inflation again during the year.• Inflation: After climbing to double digits in the first half.

up 12 per cent. with a 49 per cent growth in domestic sales to 156. which account for more than 95 per cent of Hero Honda's sales. the company sold 3. third and fourth placed competitor. Hero Honda's performance in the two-wheeler industry was the only . During the year. the company also turned in a rollicking performance with its scooter portfolio. This performance allowed Hero Honda to increase its share in the domestic scooter market by more than three percentage points. It sold more two wheelers during the year than the combined volumes of the second. Overall.72 million two-wheelers. were up 11 per cent.210 units.HERO HONDA'S PERFORMANCE SETTING THE BENCHMARK Hero Honda was the torchbearer for the two-wheeler industry during the year in review. Motorcycle sales in the domestic market.

. Without Hero Honda's numbers. the two wheeler industry growth would have been marginal.standout performance during the year amongst the large players.

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Planni ng observ e control These prime constitutes a proper set up marketing program in order to get the desired output. of the .

Products of the company .

COM HTTP://WWW.COM WWW.COM/SEARCH.INDIATIMES.THEHINDUBUSINESSLINE.CMS WWW.TIMESOFINDIA.COM WWW.HEROCYCLES.COM HTTP://ECONOMICTIMES.COM WWW.Bibliography WEBSITE: WWW.WEKIPEDIA.INDIAINFOLINE.HEROHONDA.COM HTTP://WWW.FADAWEB.COM/INDIA BOOKS: AUTOCARE OVERDRIVE .

Also Hero Honda has developed different marketing strategies for different products based on the target market. The profile includes behavioral. Our project focuses on a few key areas: Firstly. Industry Concept of Competition 10.Opportunities . identification of brand. Conclusion 17. to segmentation. and purchase and post purchase behavior. Customer Behavioural Analysis 8. which would make CBZ a more popular product. we have examined the various strengths. we have identified various processes involved in conceptualizing a marketing plan.This gives an insight on the external and internal environment our product is operating in . through a consumer survey.doc) Table of Contents of Project Report: 1. Through this survey we have also probed into the various factors. after a brief introduction of the company and the product. Product Specifications 5. Customer Value Analysis 15. Finally.Strengths . Hence choosing this product involved an insight into the development of a marketing plan. Analysis In Terms Of Porter’s 5 Forces Model 13. Hero Honda Cbz 12. Number of Pages of Project Report:66 Package Includes: Project Report Project Format: Document (. form and generic competition faced by CBZ. We chose CBZ because through CBZ. we have tried to understand the psychology and behavior of the motor cycle customer. activities of various competitors to understand its competitive scenario. Next. Competition in the Motorcycle Industry For 11. Segment Profile of Target Market for Cbz 16. and also analysis of competitive strategies followed by Hero Honda. Next. opportunities and threats of our product . Swot Matrix 7. Executive Summary 2. in terms of buying roles. Analyzing the Competition 14. through the conclusion we discuss our learning from the project undertaken. Hero Honda 3. decision making process. Cbz 4. Through Hero Honda CBZ. from consumer surveys. demographic and geographical factors. weaknesses.Threats 6.Weaknesses . The Competition 9. We chose Hero Honda CBZ as our product of study because Hero Honda is the market leader in the motor cycle industry.INDIA AUTO Introduction: This project discusses the "Marketing Strategies of Hero Honda". as the saying goes “Consumer is king”. our report includes segmentation profile of our product by identifying the target market. industry.Thereafter we have developed a SWOT matrix of CBZ. appreciate and develop a marketing strategy or plan. SWOT Analysis . analysis of competitors. This project undertaken by us is an attempt to understand. The third section of our report includes an analysis of the competitive forces in the motor cycle industry according to Porter’s five forces model. References . Hero Honda entered the four stroke segment market.

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