STRATEGY MARKETING

HERO DUO 120

STAGE-1

Submitted to:
Prof. Dr. Suresh M.R
Submitted By: Group-7
Srinivas Prasad R (18110)
Trupti Kanwar (18112)
Masoom Raza (18115)
Shruthi R (18122)
Thimmaiah B A (18124)

1|Page
Contents
Questions to answer before developing our approach for Product launch:............................................. 3
PRODUCT ADAPTATION ................................................................................................................... 4
XAVIERS FRAMEWORK .................................................................................................................... 4
Marketing Mix Analysis ..................................................................................................................... 6
Aguilars study on Environmental Scanning............................................................................................ 7
Collection of Information ....................................................................................................................... 8
TECHNOLOGICAL FOCUS ................................................................................................................. 8
Broad structure of our final report ........................................................................................................ 10

2|Page
Questions to answer before developing our approach for Product launch:
Q.1) Why is this product important to your business, to your customers and to your
market?

Ans.) We have got inputs from the research team and immediate product manager and as per
the report, there is a need to add one more product to our product portfolio as Competitors are
also coming up with some new products in the same category. And it is important steps to
safeguard our interest keeping our Product offering in mind.

Customer analysis has been done to identify the needs and wants of a new value-added product
and we have analysed the following things such as:

1. How should we position your product?

2. Where should we distribute your product
3. How should we price your product?
4. Where and how should we market your product?

Q.2) What role does this product play in your business? For example, does it fill a gap,
make you more competitive or meet a specific customer requirement?

Ans.) Gearless scooters have always been the maximum revenue generator for the company
and based on the Environmental analysis conducted by our team, it is feasible to launch the
product to reach out to more customers and increase the sales. We have identified the
detailed analysis of our target customer based on following things:

 Demographics -- statistical data on a population including income levels, age, etc.

 Psychographics -- the attitudes and tastes of a certain demographic.
 Ethnographic -- examination of cultures.
 Buying habits -- how, what and where customers purchase products and services.

It will give us a Competitive advantage to our company and products offerings, as our focus
is clear on these things:

 Communicating the key message to our potential customer

 features and benefits of our products matter to each potential market.
 Telling customers how our products can help them solve their problems.
3|Page
Q.3) How is this product is better and different from competitive offerings? Is the
magnitude only incremental or is it significant?

Ans.) We have focussed on certain things in our new product offerings such as:

 New and stylish design

 I3S start-stop system
 Scooters with External Fuel Filler Caps (No need of get off from the scooters for
fuelling).
 Disc brake at the front

It will be a product of same category but with a different and newly added features in terms
making the customers life’s easier. It will certainly make a boost in our sales and will
differentiate our products from the competitors.

PRODUCT ADAPTATION

We are heading for Product Adaptation, which is Discretionary type, in following ways:

 In order to deliver better performance of the product that is Hero Duo it has adapted
various features like i3s system of start and stop, also
 a powerful 125cc air-cooled engine, which complies with the Governments BSVI
norms.
 In order to succeed in the local market, it has come up with the more stylish design and
is more efficient in terms of fuel economy, with a power of 8.7bhp at 6750 rpm.

This will lead us to penetrate to the nearby market also that is Kochi and Chennai, and there
are certain cost-savings benefits that we will get from the manufacturing facilities.

XAVIERS FRAMEWORK
i. Environment Analysis –

India has emerged as the world’s biggest market for two-wheelers. A total of 17.7 million two-
wheelers were sold here last year, that’s over 48000 units every day. One big reason for the
spurt in sales has been women commuters, who like the ease of zipping inn and out of chaotic
city traffic on their gearless scooters. For Honda, which leads the scooter market, the share of
4|Page
women is at 35%. Also, the growth of infrastructure in smaller towns and non-urban areas is
helping demand. The massive government spending in rural programmes and large road
constructions projects are leading to a pick0up in volumes in smaller towns and villages. In
metro and larger cities, the sales are also being aided by the choked infrastructure. People buy
two-wheelers for shorter commute and errands, even if they have a car. Because it is difficult
to move around in congested cities and even difficult to get space to park a car. So, this results
in two-wheelers increasingly becoming the second vehicles in the household. Industry officials
report that the market will continue to grow over the next few years.

ii. Market Analysis –

The next leg of the Indian two-wheeler market's 'scooterisation' comes from the rural and semi-
urban pockets as scooters evolve as the preferred vehicle of commute for families there. As
such, scooters have been outpacing the overall two-wheeler industry growth rate for some time,
and now major players say that growth from the rural areas has picked up too.

The industry leaders now sell three scooters for every seven motorcycles in rural and semi-
urban pockets as against one scooter for every nine bikes around five years back.

iii. Company Analysis –

Hero Moto Corps key strategies is 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. 50 million Sales (cumulative sales since inception) world’s
fastest two-wheeler company to achieve this.

iv. Competitor Analysis –

Competition is very high in the market and hence change of strategy is undertaken like
expansion with new tie ups to explore in rural as well as in the premium segments. For the
future, in this stiff competition period, the players eye on customer satisfaction and after sales
service. Technology plays a very crucial and elixir role for innovation product differentiation,
quality improvement, new product development, add value creation to customers and key
players in the market thus increasing the growth of the industry and relative market shares of
the key players such Honda, Bajaj and TVS Motors.

5|Page
 v. Customer Analysis –

The two-wheelers market of India is experiencing a significant shift in the customers' interest
as more and more people are opting for non-geared scooters. The manufacturers have realized
the interest of customers and have spiced up the gearless scooters segment with many
consistent launches in the last decade.

vi. Marketing Mix Analysis –

Product: The Hero Duo 120 is a stylish gearless scooter, which is more appealing for
youngsters. It looks very great with its front disc brakes, stunning design and the various colour
tones. At its heart sits an efficient yet powerful 125cc single cylinder air cooled engine which
produces 8.7 bhp at 6750 rpm. The duo comes with the i3s start stop technology. As far as the
ergonomics are concerned the hero duo comes with a large under seat box, a wide and
comfortable seat and a luggage hook.

Price: The Hero Duo 120 pricing is quite reasonable it will surely appeal the people with its
stylish and efficient features. The Hero Duo charges different prices in different states and
cities according to different colours. And the competitive price is expected to start at Rs. 52000
in ex-showroom Bangalore.

Promotion: The promotion includes the advertising, personal selling, public relations, sales
promotion etc. So, as the company Hero is concerned it uses many tools for the promotion,
they raise awareness to the customers by advertising. They use television, radio, newspaper,
and internet as the medium of advertising. So, here through the advertisement the people will
get to know about the features and design of Hero Duo. By way of providing free trials the
customers will get aware of the product.

Place: Place is the mechanism through which the product is moved from the manufacturer to
the user or consumer. So, the company Hero Moto corp. uses its intermediaries, such as the
wholesalers, agents, retailers, online, and direct marketing to sell its product Duo. The Hero
company also uses the exclusive distribution for its products.

vii. Strategy Formulation –

In India, the scooter segment is growing much faster than motorcycles - Hero MotoCorp’s area
of strength. Hero MotoCorp has launched multiple models such as Pleasure, Maestro, Maestro

6|Page
Edge and more. The company to remain the market leader has had a breakthrough with the
launch of Hero Duo 120 and still reviewing its product development.

Aguilars study on Environmental Scanning

Market Tidings: The major target segments for Hero Duo is Bangalore where the focus is on
working class customer as our target group of consumers .Since there are many competitors
and structural changes of market in the scooter product line , Hero Duo will be differentiated
compared to its competitors. Since our target group are working class, they prefer more stylish
and the bike which provides more mileage. Hero Duo product will be catering to the needs of
the customers.

Acquisition Leads: As there are lot of Scooter vehicles which have been trend setters in the
market ,Hero Duo has special features such as 13S start-stop system, Scooters with external
fuel caps , Disc brake at the front , more stylish and designed scooters and more appealing to
youngsters with different colours choice of exterior colours that complement the scooters
design all these features will be embedded to the Hero Duo to be the trend setter in the market.

Technical Tidings : Hero Duo will adapt the current technology which is in very high demand
in the market among the customers and will differentiate itself according to the change in the
technology , the features of Hero Duo is a new product development which requires a very high
technology and this new product will be able to build the consumer base even more stronger
for Hero Duo.

Board Issues : The role of government and regulatory dynamics will play a major role will
marketing penetration of the Hero Duo product , since it is a new product certain measures will
be taken to cater the needs of the government so that this product does not damage the
environment and grows effectively in the market without any downfall.

Other Tidings : The raw materials for the Hero Duo product will be supplied according to the
features of the product which will not affect the market condition or the environment ,there
will be a seamless flow of the raw materials so that there will no issue in manufacturing
industries and SKU units will be checked on frequent basis so that the company will be able to
meet the demand of the customers as there will be raise in the market.

7|Page
Collection of Information
Conditioned Viewing : This view basically focuses on the purpose of search of the particular
information ,To launch the new product the company must collect information pertaining to
the market segments , competitors , environment of the product , consumer base and mode of
enter ,when all this information has been collected by the company it becomes easy for the
company to understand whether the product will develop in the market as Cash Cows or will it
fall into Dogs.

Formal Search : This is a well-structured systematic procedure wherein the company follows
certain format to understand the need of the market and the customer needs .This search collects
the information of the competitors and consumer base in a very accurate way so that the
company enters the market with products which are differentiated from other competitors and
the company is able to satisfy the customer’s needs . This informal will also be able to build
the brand image stronger and which further builds brand trust.

TECHNOLOGICAL FOCUS
Technology has played an integral role in the growth of marketing over the years. As new
technologies show up, marketers need to keep up with the trends to ensure they are able to
speak their audience’s language. As India is getting ready for electric scooters Hero MotoCorp
is investing so much on research and development.

Old technology

Hero had a joint venture with Honda for technology but after 2014 Hero started working with
different technology partner. the firm had entered into technology sourcing pact with US-based
Erik Buell Racing (EBR) to strengthen presence in the high-end bike segment. The company
had also entered an alliance with Austria-based engine developer AVL to enhance capability
in different engine segments. The technology pact is signed to with the aim of sourcing
technology of high-end motorcycles and then leverage it into the low-end motorcycles which
Hero MotoCorp. is currently producing. The company will roll out a commuter motorcycle
next year which will be based upon EBR technology.

8|Page
New technology

The new facility, the Hero Tech Centre Germany GmbH, will be a wholly owned subsidiary of
Hero MotoCorp Ltd and operate in tandem with the company's global R&D hub, the Centre of
Innovation and Technology, which is located in Jaipur. Setting up of the Hero Tech Centre
Germany GmbH is a realization of their aspiration to build an R&D eco-system that is spread
across global geographies. Ever since Hero began its solo journey in 2011, they had a clear and
focused plan to enhance and strengthen their technological know-how and product
development capabilities. They set up the Centre of Innovation and Technology in Jaipur in
2016 and since then, this facility has been designing and developing a range of new mobility
solutions for customers across the globe.

The Hero Tech Centre Germany GmbH will be under the direct supervision of the company's
Chief Technology Officer Markus Braunsperger and focus on development of new vehicle
concepts and future technologies in close cooperation with the teams at the Centre of
Innovation and Technology in Jaipur. It will also be the epicentre for Hero's motorsport team,
the Hero Motorsports Team Rally, and facilitate all rally participation activities, including new
product development for the team.

9|Page
Broad structure of our final report

Frameworks to be applied further to understand and plan our strategy of

launching the product by designing the roadmap:

1. Resource based view to understand your firm’s competence - The resource-based

view (RBV) is a model that sees resources as key to superior firm performance. If a
resource exhibits VRIO attributes, the resource enables the firm to gain and sustain
competitive advantage
2. VRIO framework
3. Dixit’s framework for understanding the capabilities in the firm
4. Selecting/Formulating marketing strategy:
a. Product market strategy
b. Issue assessment
c. Key variables
d. Strategy selection
5. Marketing strategy dimensions
6. Exhaustive analysis of the External stakeholders of the Company that will
conclude following things:
a. Market entry strategy
b. Sustainability in terms of balance economic, social and environmental
sustainability factors in equal harmony

10 | P a g e