Project on 3c Report

C-Company
C-Customer
C-Competitor

Presented by
Subha Paul
On
Hero MotoCorp Ltd.
 Acknowledgement

I owe a great many thanks to a great many people who helped and supported me
during the working of this project. During the working on the project I always faced a
challenging and interesting experience.

I am very much grateful to one of our faculty members Ms. Rupsha Roy the Guide of
the project for guiding and correcting various documents of mine with attention and
care. She has taken pain to go through the project and make necessary correction as
and when needed.

I also extend my heartfelt thanks to my family and well wishers.

Thank You.
 Content

1. Introduction of the company 1

2. C-Company 2

a. Vision 2

b. Mission 2

c. Strategy 2

d. Who is who 3

e. Corporate Governance 3

f. Headquarter and Branches 4

g. Product 5

h. SWOT analysis 6

3. C-Customer 7

a. Profile of target customer 7

b. Customer relationship activity 7

4. C-Competitors 8

a. Market share and the business performance 8

b. Comparison with competitors 8

 Hero MotoCorp Ltd.

 Introduction:

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India. The company was a joint venture
between India's Hero Group and Honda Motor Company, Japan that began in 1984.

During the 1980s, the company introduced motorcycles that were popular in India for
their fuel economy and low cost. A popular advertising campaign based on the slogan
“Fill it - Shut it - Forget it” that emphasized the motorcycle's fuel efficiency helped the
company grow at a double-digit pace since inception. The technology in the bikes of
Hero Honda for almost 26 years (1984–2010) has come from the Japanese
counterpart Honda.

Hero MotoCorp has three manufacturing facilities based at Dharuhera, Gurgaon in

Haryana and at Haridwar in Uttarakhand. These plants together are capable of churning
out 3 million bikes per year. Hero MotoCorp has a large sales and service network with
over 3,000 dealerships and service points across India. Hero Honda has a customer
loyalty program since 2000, called the Hero Honda Passport Program.

During the current financial year, in view of the separation of the joint venture partners,
the Company had started the process of change of name of the Company from Hero
Honda Motors Limited to Hero MotoCorp Limited. The new name was approved by the
members of the Company in their Extra-ordinary General Meeting held on June 17,
2011. Also, the new Corporate Identity (new Corporate Logo) was adopted by the
Board of Directors of the Company on August 17,2011 for all future practical purposes.
The Hero Group would buy out the 26% stake of the Honda in JV Hero Honda. Under
the joint venture Hero Group could not export to international markets (except Sri
Lanka) and the termination would mean that Hero Group can now export.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in
terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain
this position till date.
 C-Company: 1

Vision

The story of Hero Honda began with a simple vision - the vision of a mobile and an
empowered India, powered by its bikes. Hero MotoCorp Ltd., company's new identity,
reflects its commitment towards providing world class mobility solutions with renewed
focus on expanding company's footprint in the global arena.

Mission
Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs
and aspirations for mobility, setting benchmarks in technology, styling and quality so
that it converts its customers into its brand advocates. The company will provide an
engaging environment for its people to perform to their true potential. It will continue its
focus on value creation and enduring relationships with its partners.

Strategy

Hero MotoCorp's key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building
activities and ensure customer and shareholder delight.
 Who is who
2
Founder Director and Chairman : Dr. Brijmohan Lall Munjal

Managing Director and CEO : Mr. Pawan Munjal

Board of Directors

Name of the person Nature of the Office

Mr. Sunil Kant Munjal Non Executive Director
Mr. Suman Kant Munjal Director
Mr. Paul Edgerley Non Executive Director
Mr. Pradeep Dinodia Director
Gen. (Retd.) V. P. Malik Director
Mr. Analjit Singh Director
Dr. Pritam Singh Director
Mr. M. Damodaran Director
Mr. Ravinath Director
Dr. Anand C.Burman Director

Corporate Governance

At Hero MotoCorp, it is the firm’s belief that the essence of Corporate Governance lies
in the phrase ''Your Company''. It is ''Your'' Company because it belongs to you - the
shareholders. The Chairman and Directors are ''Your'' fiduciaries and trustees. Their
objective is to take the business forward in such a way that it maximizes ''Your'' long-
term value.

This Company is committed to benchmarking itself with global standards for providing
good Corporate Governance. It has put in place an effective Corporate Governance
System which ensures that the provisions of Clause 49 of the Listing Agreement are
duly complied with.
The Board has also evolved and adopted a Code of Conduct based on the principles of
Good Corporate Governance and best management practices being followed globally.

Headquarter and Branches

Corporate & Registered Office 3
Hero MotoCorp Ltd.
34, Community Centre, Basant Lok, Vasant Vihar, New Delhi - 110057, India.
Tel: +91-11-26142451, 26144121
Fax: +91-11-26143321, 26143198

Zonal Offices

East Zone
Hero MotoCorp Ltd
3F, Neelamber Building, 28B, Shakespeare Sarani, Third Floor, Kolkata - 700017, India.
Tel: +91-33-22810926 22810927, 22808922, 22811185
Fax: +91-33-22808923
Email: kolkata@heromotocorp.com

West Zone
Hero MotoCorp Ltd.
15-A, Bhale Estate, Rear Wing, Third Floor, Pune-Mumbai Road,
Wakadewali, Pune - 411 003, India.
Tel: +91-20-25511577, 25512161, 56012990-91
Fax: +91-20-25511266
Email: pune@heromotocorp.com

North Zone
Hero MotoCorp Ltd.
F-126, Katwaria Sarai, Opp. Qutab Institutional Area,
New Delhi -110016, India.
Tel: +91-11-26533981-2, 47619300
Fax: +91-11-26533983
Email: delhi@heromotocorp.com

South Zone
Hero MotoCorp Ltd.
No - 294, 2nd Floor, 6th Main, Off 100 ft Road, HAL 2nd Stage,
Indira Nagar, Bangalore – 560038, India.
Tel: +91-80-25550430, 25584436, 25582436, 25321139
Fax: +91-80-25594036
Email: bangalore@heromotocorp.com
Product

Hero CD-dawn(97.20 CC)

Hero Splendor Plus(97.20 CC)

Hero Glamour (125 cc)

Hero CBZ Xtreme (Self Start) Also in kick mode

Hero Hunk (Self Start) Also in kick mode

 Hero Karizma

SWOT analysis
5

Strengths Weaknesses

 Ability to understand customer’s  R&D is not close to the hero

needs and wants. manufacturing plant.

 Effective advertising capability.  Hero recently separated from the

 It’s after sales activity. joint venture with Honda.

 Technology.  Brand name of Hero itself has no

 Maintenance cost is low. influence in the automobile industry.

Opportunities Threats

 Global expansion.  After separation Honda becomes

 Expansion of target market ( include the competitor.

women).  Bajaj motor is already a strong

 Can export worldwide. competitor.

 Now they can follow any distribution  Petrol price increases.

 channel and select any vendor for its  Pollution norms.

components.  Aluminum & steel price increases.

 C-Customer:
6

Profile of target customer

Hero MotoCorp basically targets the every each and segments of the market. So there
are some products like splendor, CD- dawn (rs40000-50000) they made for lower
segment of the market and glamour, passion, CBZ, karizma (rs above 50000) for the
upper segment of the market. And now they are trying to target the young people of the
market.

India’s Hero MotoCorp, the world’s largest producer of motorcycles and scooters, has
announced its intention to expand globally, with plans to sell vehicles on three
continents and nearly double its unit sales within five years. The company, whose family
shareholders bought out its former partner Honda Motor this year, said it would invest
about $1bn to expand internationally in south-east Asia, Africa, and Central and Latin
America.

Customer Relationship Activity

For making a better relationship with customer they always use genuine parts in their
product. And after selling they have the services and maintenances. Their constant
endeavor is to support the company's mandate of providing highest level of customer
satisfaction by taking good care of customer’s two-wheeler service and maintenance
through their vast network of more than 2100 committed dealers and service outlets
spread across the country.

Apart from that hero motocorp focused on cleanliness and other aesthetics of the
service stations and add such air conditioned waiting area, internet surfing, coffee
shops etc to enhance the in house experience of the customers at those “customer
touch point”. To ensure that millions of customers in the rural area are not left waiting for
adequate service as it is impossible for the company to introduce service station at
every nook and corner of the country, mobile service stations are regularly arranged
with prior intimation to public about the rout that the mobile workshop would take when
passing through that region so that customers can come and get their two wheelers
serviced. All these activities are aimed to increase the customer loyalty and thus
retaining customers.

 C-Competitors:
7

Market share and business performance

During the year (2010-11) the Company notched 17.44% growth in sales, with volumes
of 54,02,444 units compared to 46,00,130 units in 2009-10. In value terms total sales
(net of excise duty) increased by 22.13% to Rs. 19,245.03 crores in 2010-11 from Rs.
15,758.18 crores in 2009-10. The Company continued to lead the domestic motor cycle
market with 54.6% market share, others (Bajaj, Yamaha, TVS, Honda etc) are holding
the rest of the market of 56.4%. Shown in figure 1.

Hero motoCorp 54.60%

Others 56.40%

Market Share

Figure 1

Comparison with competitors

 3500000
sales unit April to September
3000000 2011
2500000
sales unit April to September
2000000 2010
1500000
1000000
500000
comparison
0
with
competitors in
unit sold with
previous year

Figure 2

Hero MotoCorp: The company has reported sales of 30,73,852 units for the period of
April to September 2011 up by 21.98% compared to 25,19,973 units during the same
8
period last year.

Bajaj Auto: The company has sold 19,90,408 units of two wheeler during April to
September 2011 period up by 16.27% compared to 17,11,863 units sold during the
same period last year. Combined sales of brand Discover has crossed 5 million marks
which is remarkable for Bajaj Auto.

Tvs Motors: The company has sold 11,17,253 units during April 2011 to September
2011 period up by 15.06% compared to 9,71,039 units in the same period last year.

HMSI: (Honda Motors & Scooter India ltd) The company has sold 9,22,979 units during
the April 2011 to September 2011 period up by 13.21% compared to 8,15,310 units sold
in the same period last year.

Yamaha India: During April to September 2011 the company sold 2,31,032 units up by
34.10% compared to 1,72,289 units sold in the same period last year.
Suzuki Motorcycle: During the April 2011 to September 2011 the company
sold 1,68,037 units up by 39.12% compared to 1,20,710 units in the same period last
year.

Mahindra Two Wheelers: During the April to September 2011 period the company
reported sales of 74,254 units up by 4.83% compared to sales of 70,836 units in the
same month last year.

So after changing the name from hero Honda to hero motocorp ltd nothing has been
changed in their market performance, so still they are the market leader. That is shown
in figure 2, in the previous page.